| September 29, 2023 | "Irreverent, but never irrelevant" | | | | John Lothian
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Hits & Takes
John Lothian & JLN Staff
With an impending government shutdown predicted, the CFTC sent out a notice that CFTC Chairman Rostin Behnam would participate in a fireside chat with FIA President and CEO Walt Lukken at next week's FIA EXPO. That can only mean my prediction of a pre-recorded chairman's participation in EXPO was true, and it has been confirmed by a CFTC source that Behnam and Lukken pre-recorded the fireside speech yesterday. Somehow the "Be Prepared" motto of Scouting works for regulators and industry organizations too.
Reuters is reporting that "The National Park Service will close, the Securities and Exchange Commission will suspend most of its regulatory activities and hundreds of thousands of federal workers will be furloughed beginning at 12:01 a.m. ET on Sunday (0401 GMT) if Congress does not pass a spending package that can be signed into law by President Joe Biden before then."
Also, FIA is currently seeking an executive assistant to support both Lukken and Jacqueline Mesa, COO of FIA, Inc. The role involves efficiently managing day-to-day schedules and operations within the executive office, as well as contributing to the advancement of FIA's strategic goals in its Washington DC location. FIA is looking for candidates who possess excellent organizational skills, a strong desire to learn, and a positive attitude, with a sense of humor that aligns with its team. An added bonus is the opportunity to immerse yourself in the dynamic world of derivatives markets and gain insight into their critical role in the global economy. FIA hopes this opportunity piques your interest!
Senator Diane Feinstein of California has died at the age of 90, The New York Times reported. She was the oldest member of the Senate and had been in declining health for months. She served in the Senate for 30 years and was the longest-tenured female senator in history, and the senior Democratic member of the Senate.
Gary Gensler is the Tonya Harding of the capital markets, according to Rep. Andy Barr (R-Ky.), The Hill reported. Barr said at the House Financial Services Committee, "With all due respect, Mr. Chairman, if the U.S. capital markets are a gold medalist, you are the Tonya Harding of securities regulation because you are kneecapping the U.S. capital markets with the avalanche of red tape coming out of your commission." I wonder, if Mr. Gensler was a skater, would he enter the pairs competition with his twin?
Today JLN has the first episode, number 22 of Options Discovery, that features Asma Awass conducting the introductory section as well as the interview with the subject matter expert. The subject matter expert is none other than former JLN staffer Doug Ashburn, a 20+ year veteran of the CME FX options trading pits, who talks about the collar trading strategy. There is the regular episode, number 22, and then there is the full length interview with Doug as well.
There is a day for everything. I blame it on the greeting card industry. But today is National Coffee Day, September 29, and The Wall Street Journal has a story about it and all the deals you might be able to enjoy with your morning or afternoon cup of java.
How bad is the immigration problem in Panama and Colombia? Official data reveals that the volume of individuals traversing the treacherous Darien Gap connecting Panama and Colombia has reached an all-time high of 400,000 within the year leading up to September, Reuters reports. This surge in migration towards the United States persists, despite attempts to regulate and reduce the influx. A statement from Panama's security ministry disclosed that over half of these migrants consisted of children and infants. Notably, September witnessed a one-fifth surge in the number of crossings compared to the preceding month. The year-to-date tally of 402,300 migrants is nearly twice the total number for the entire year of 2022.
Evan Gershkovich, a journalist from The Wall Street Journal, was taken into custody in Russia six months ago, on March 29, during his reporting assignment, and has been charged with espionage. His detention marks a concerning milestone as he becomes the first American journalist to face such charges in Russia since the Cold War era. We continue to call for his immediate release.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
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Our most read stories yesterday on JLN Options were:
Traders wary of volatility as JP Morgan fund's big options trade looms from Reuters.
JPMorgan 'Options Whale' Worries Resurface as Stocks Extend Drop from Bloomberg.
Cboe and S&P Dow Jones Unveil Innovative Cboe S&P 500 Dispersion Index from John Lothian News. ~JB
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Bryan Harkins, Co-Founder of Rides FAR, Announces Chicago Ride in JLN Video on Fundraising for Autism Research
JohnLothianNews.com
In a recent video interview with John Lothian News, Bryan Harkins, co-founder of Wall Street Rides FAR, discussed the journey and impact of the fundraising event for the Autism Science Foundation (ASF). During the interview, Harkins announced that the Rides FAR event would expand to Chicago next year and that the organization has been renamed to Rides FAR to represent its multi-city nature.
Watch the video »
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Options Discovery Episode 22; Intro to the Collar Strategy; Doug Ashburn, Executive Editor at Britannica Money, Discusses These Topics and More With JLN's Asma Awass.
JohnLothianNews.com
In this episode of Options Discovery, Asma Awass introduces the collar strategy. This includes a breakdown of a covered call and protective put which make up the strategy. Asma also sits down with Doug Ashburn, the executive editor at Britannica Money, to dive deeper into this strategy. To learn more about an options collar, check out Doug Ashburn's article here: https://www.britannica.com/money/option-collar-strategy
Watch the video »
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| Sponsored Content |
Navigating Uncertainty: JPX Launches New Derivatives Amid Global Challenges
In a year shadowed by the Ukraine conflict, soaring inflation, environmental and geo-political crises, Japan Exchange Group (JPX) is fortifying its offerings with new derivatives products. This strategic move coincides with the 35th anniversary of Equity Index Futures trading in Japan, spotlighting the Nikkei 225 and TOPIX indices as enduring financial tools.
This milestone anniversary underscores the resilience of JPX's flagship products, which continue to offer investors risk-hedging opportunities amid geopolitical and economic volatility.
Nikkei 225 Micro Futures: Inflation Hedge
While the Nikkei 225 soars to new decade highs, JPX's newly launched Nikkei 225 Micro Futures cater to individual investors, offering a cost-effective way to navigate inflation and market volatility. The micronized contracts provide an accessible and affordable hedge against global economic unpredictability.
Nikkei 225 Mini Options: Geopolitical Risk Management
With geopolitical tensions in mind, JPX has introduced Nikkei 225 Mini Options. These instruments open risk management strategies to a broader audience, offering adaptability in a swiftly changing global landscape.
3-month TONA Futures: Addressing Rate Uncertainty
JPX's 3-month TONA Futures assist institutions in managing liquidity during an unstable interest rate environment. As TONA emerges as a key rate benchmark, these futures serve as a strategic tool for financial adaptability. The offering completes the already robust JGB futures and vibrant JSCC IRS markets, cross margin efficiencies across the whole fixed income playbook are available through the JSCC clearing house.
Futureproofing and ESG
JPX is also preparing to implement Value-at-Risk (VAR) clearing in November 2023, offering a best-in-class margining methodology to further unleash portfolio efficiencies for market participants.
To deliver our part to global ESG concerns, JPX has launched a carbon credit market under the TSE brand, this offering will complement the already actively trading TOCOM Power market in the future. These anticipatory measures ensure JPX stays aligned with global sustainability initiatives.
These product launches, along with the upcoming VAR clearing system, cement JPX's role as a resilient, forward-thinking player in the global financial landscape and to further stride to remain your exchange of choice!
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Author: Matthias Rietig, Senior Officer of OSE Contact: Osaka Exchange / Tokyo Commodity Exchange Derivatives Business Development E-mail: ose-dmg@jpx.co.jp |
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BOE's Greene Sees Risk of 1970s-Style Crisis From Climate Change
Lucy White - Bloomberg
Bank of England rate-setter Megan Greene said the economic impact of climate change could be on the scale of the 1970s oil shock, requiring central bankers to make difficult choices. Greene, who joined the BOE's nine-member Monetary Policy Committee in July, chose to reference a paper from renowned French economist Jean Pisani-Ferry, who said that decarbonization efforts needed to minimize climate change could be "regarded as an adverse supply shock - very much like the oil shocks of the 1970s."
/jlne.ws/3RF2OE5
***** I love a good supply shock. The long lines. The anger. The political strife. Why stop all that fun from happening by trying to address climate change?~JJL
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U of C holding contest for students to help solve Chicago's pension crisis
Corli Jay - Crain's Chicago Business
A new competition will allow students to address the city's $35 billion pension problem. The Harris School of Public Policy at the University of Chicago is allowing students to submit solutions to address the issue with its Harris Policy Innovation Challenge. The competition, which will be led by Justin Marlowe, a research professor at the Harris School and faculty director of Harris' Center for Municipal Finance, will include seminars featuring faculty, city officials, investment experts and union leaders during the autumn, winter and spring quarters.
/jlne.ws/3RGCmKA
***** If they win, do they get free tuition?~JJL
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Could a government shutdown affect Fat Bear Week?
Sarah Beth Hensley - ABC News
Call it potentially "unbearable" -- at least for wildlife fans. The looming government shutdown would affect Fat Bear Week, the annual celebration of wild bears who put on weight to prepare for hibernation. From Oct. 4 through Oct. 10, the bears of Alaska's Katmai National Park face off March Madness-style on the Fat Bear Week website, where people can vote to crown the best and chunkiest bear.
/jlne.ws/3ZQDPjz
***** Fat bear week is why I don't go to Alaska in October as I don't want to be mistaken for a bear. I must admit, I do a very good Yogi Bear impersonation of "Hey Boo Boo, I think I see a pic a nic basket."~JJL
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| Sponsored Content |
The Full FX at FIA Expo
The Full FX at FIA Expo on Wednesday October 3 takes place at the Sheraton Grand Riverwalk in Chicago on the sidelines of FIA Expo. We have a full day of discussion lined up including fireside chats, panels, one-on-one interviews and, to close things out, The Chat Show - For FX' Sake. Join us for a full day of lively debate with speakers from leading buy and sell side institutions as well as innovative technology providers.
We will be talking FX liquidity and execution; the evolution of FX swaps; how the post-trade evolution is looping back to the front office, and how close (or not) we are to the genuine institutionalisation of crypto markets.
With sustained volatility making a return to FX markets and regulation changing the way we have to think about our business, there is no better way to keep up with the latest trends than coming to The Full FX at FIA Expo to meet with your peers, your clients and hear from industry leaders as we drive thought leadership to help the FX industry evolve and succeed. View the agenda and sign up here for The Full FX sessions.*
*Please note that registration for The Full FX does not grant admission to FIA Expo.
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Thursday's Top Three
Our top story Thursday was our lead story, Greg Abbott trying to lure CME out of Chicago, from Crain's Chicago Business. Second was Bloomberg's Trading Firms Make Contrarian Bets on Downtown Chicago Offices, our second story in Leads. Third was Acuiti's Asset Management Insight Report Q3 2023.
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| Lead Stories | The Threat of an American Debt Crisis; The mini-documentary America's Looming Debt Spiral shows how the path back to fiscal prudence is getting harder-and that time may be running out.
Scarlet Fu - Bloomberg
The cost of servicing US debt has surged in recent years. The perpetual threat of a government shutdown or even default comes thanks to political dysfunction that's seemingly put solutions out of reach. At some point, the failure to tackle America's large and growing budget deficit is going to hit the wallets of ordinary Americans. And hard.
/jlne.ws/3LGopsi
Quirk of Bond Futures Threatens to Accelerate Surge in US Yields
Edward Bolingbroke - Bloomberg
A rare, relatively unknown technicality in the Treasury futures market stands to unleash fresh momentum in the selloff of US government bonds. The fine print of futures contracts is coming into focus as Treasury yields surge, threatening to hit a market where investors have amassed a record sum of contracts. Barclays Plc strategists are already warning of what could potentially become the biggest futures-market disruption since 2015.
/jlne.ws/3LGd0s9
Top financial regulator seeks global clampdown on hedge fund borrowing; FSB's Klaas Knot warns of risk to stability of debt build-up outside mainstream banking system
Laura Noonan - Financial Times
The world's financial stability watchdog is launching a probe of the build-up of debt outside traditional banks, as it seeks to limit hedge funds' borrowing and boost transparency. Klaas Knot, chair of the Financial Stability Board, told the Financial Times the review was intended to address rising risks from so-called non-banks, which include hedge funds and private capital.
/jlne.ws/3PA1AY7
US warns green transition raises 'complex' China security concerns; Beijing is prepared to weaponise its control of mineral sectors vital to renewable power, says energy secretary Jennifer Granholm
Harry Dempsey - Financial Times
US energy secretary Jennifer Granholm has warned that transitioning from fossil fuels will make energy security "infinitely more complex" because of China's stranglehold on the processing of the critical minerals essential for renewable power. China dominates the cobalt, rare earths and graphite industries, which are vital for renewable energy, electric cars and defence technologies. Its global market share for the refining of each of those three materials exceeds 70 per cent.
/jlne.ws/3rvCNwn
Coinbase CEO: Crypto industry deserves fair rules
Jennifer Schonberger and Stephanie Mikulich - Yahoo Finance
Coinbase CEO Brian Armstrong (COIN) is pushing lawmakers to do more to regulate the crypto industry. Armstrong, along with other crypto leaders, are part of the "Stand with Crypto Alliance." The group went to Capitol Hill on Wednesday to advocate for regulations for the industry. Armstrong says that "a massive constituency" owns crypto assets, and a number of those individuals are "unhappy" with the U.S. because it's lagging behind on crypto regulations. With the 2023 elections around the corner and the 2024 presidential candidates already on the campaign trail, Armstrong points out that for some crypto investors, this is a single-issue vote for them.
/jlne.ws/3PCCtE9
Dan Loeb's Hot Hand Goes Cold; Hedge fund Third Point, after years of strong returns, has registered big losses after misreading the market. Now it faces a flood of customer withdrawals.
Gregory Zuckerman - The Wall Street Journal
Dan Loeb, one of the most successful hedge-fund managers of his generation, is having a rough year. Funds at his Third Point fell by about 1.6% this year through August after tumbling 21.8% or more in 2022, according to investors. Both figures are worse than those of peers and the broader market. Loeb, who oversees roughly $11.7 billion, said he expected higher interest rates to take a bite out of the U.S. economy this year, so he turned cautious. As a result, he didn't own enough technology shares to fully benefit from the summer's AI-powered rally that drove stocks such as Nvidia skyward.
/jlne.ws/3LH1PzB
European Central Bank Is Experimenting With a New Tool: A.I.; Artificial intelligence may help policymakers understand inflation and regulate big lenders, the central bank said.
Eshe Nelson - The New York Times
The European Central Bank said on Thursday that it was exploring ways to use artificial intelligence to better understand inflation and support its oversight of big banks, but stressed that these efforts were still in the early stages. The central bank is looking into how it can use large language models, similar to ChatGPT, for various purposes, Myriam Moufakkir, the bank's chief services officer, wrote in a blog post. This includes preparing summaries and briefings that could be used to assist policy and decision-making; making the bank's public statements easier to understand; and analyzing and comparing documents provided by banks.
/jlne.ws/457T4W5
Crypto's First Year After the FTX Blowup: 'It's Been Miserable'
Michael P. Regan and Anna Irrera - Bloomberg
Sara Feenan took the plunge in 2017, leaving a career in finance for the brave new world of crypto. Feenan, whose stints over the years included a blockchain technology company and the Binance exchange, was excited to be part of a movement that promised to remake and improve seemingly everything. She even named her dog after the inventor of Bitcoin. Then came the convulsions of 2022, capped by the spectacular blowup of the FTX exchange last November. As the fallout spread in the months that followed, Feenan, whose latest gig was at a startup, found herself out of a job. She left crypto after that.
/jlne.ws/3t56PHK
Quant Who Told His Mom to Sell Nvidia Hasn't Heard the End of It
Vildana Hajric and Michael P. Regan - Bloomberg
When Jason Hsu saw Nvidia Corp. rally above $250 a share earlier this year, he gave his mom what he thought was a sage piece of advice: Sell your shares. To Hsu, the founder and chief investment officer at Rayliant Global Advisors and co-founder of Research Affiliates, Nvidia's eye-popping rally was reminiscent of over-hyped stocks skyrocketing during the dot-com bubble in the late 1990s. His mother bought the shares at $100; it was time to take her profit. Or so he thought. Nvidia has only gone up since that not-so-prescient recommendation. The stock, following a 195% surge this year, is currently trading above $400.
/jlne.ws/3EYnsaS
Bank of England plans permanent lending facility for non-banks; UK central bank says facility is needed as risks from financial institutions such as insurers and pension funds rise
Laura Noonan, Stephen Morris and Oliver Ralph - Financial Times
The Bank of England is set to create a permanent lending facility for non-bank financial institutions such as insurers and pension funds during times of stress, its markets boss Andrew Hauser said on Thursday. In a speech Hauser outlined the need to "urgently" plug gaps in the central bank's current toolkit, which has traditionally been geared towards lending money only to banks, who then lend on to other financial institutions.
/jlne.ws/468J2FG
Wall Street Hit With Latest Wave of Fines in SEC WhatsApp Probe; Baird, Nuveen, Fifth Third and Perella Weinberg pay fines; Firms admit to using unmonitored communications for business
Austin Weinstein - Bloomberg
A fresh slate of Wall Street firms agreed to collectively pay tens of millions of dollars to US regulators over their employees' use of unmonitored communication channels on the job.
/jlne.ws/3LLmL8z
Exclusive: SEC nearing settlement with Wall Street firms over WhatsApp probe
Chris Prentice and Carolina Mandl - Reuters
The U.S. Securities and Exchange Commission (SEC) is finalizing settlements with around two dozen Wall Street firms to resolve investigations into record-keeping lapses, said two people with knowledge of the matter. The settlements with broker-dealers and investment advisers would mark the latest enforcement action in the SEC's two-year crackdown on Wall Street's use of WhatsApp and other unapproved messaging apps that has so far resulted in more than $2 billion in fines.
/jlne.ws/3RAtR3B
What to Know About the SEC Rule to Settle Stock Trades in One Day
Lydia Beyoud - Bloomberg
Even in an age of instant communication and live financial data, investors still have to wait days to take ownership of the stocks they purchase or to receive payment for the stocks they sell. That's about to change. Starting on May 28, 2024, US trades will "settle" (complete the exchange of dollars for stock) in one day rather than two. Experts say US banks, brokers and investors will have to review all of their post-trade technologies and procedures to ensure they are ready for the new pace of stock trading. The change poses a special challenge to investors outside the US who need to buy dollars as part of their stock trades.
/jlne.ws/3PES45Y
Bankman-Fried trial poses biggest test to date for crypto's top cop
Luc Cohen - Reuters
Sam Bankman-Fried's upcoming trial on fraud charges marks a major test for a broader crackdown on white collar crime led by Manhattan's top federal prosecutor: Damian Williams. Upon taking office in late 2021 as the U.S. Attorney for the Southern District of New York, Williams said "rooting out corruption in our financial markets" would be one of his top priorities - a familiar role for an office known as the main enforcer on Wall Street.
/jlne.ws/3RBspxJ
Coinbase Attempts to Plug Void in Crypto Perpetuals Left by FTX
Oliver Knight - CoinDesk
Cryptocurrency exchange Coinbase (COIN) announced this week that it had received regulatory approval in Bermuda to list perpetual futures to users outside of the United States. The move comes as no surprise, Coinbase acquired a license in Bermuda to operate a spot exchange back in April following a gung-ho approach from U.S. regulators, with the ultimate intention of rolling out a perpetual futures platform.
/jlne.ws/46xxpYH
Crypto's advocate at the CFTC still has doubts about DeFi
Leo Schwartz - Fortune
From her perch as a commissioner at the Commodity Futures Trading Commission, Summer Mersinger has established herself as a defender of the crypto industry. She may shirk that title, but it's clear from her recent dissents against CFTC enforcement actions that she sees value in nurturing the sector. Earlier this month, when the agency jointly filed lawsuits against three DeFi protocols, Mersinger objected, decrying the CFTC's "regulation by enforcement" approach and likening the agency's actions to the old adage from psychologist Abraham Maslow-if all you have is a hammer, you view everything as a nail.
/jlne.ws/467FBir
Ex-Bear Stearns Trader Who Aided Spoofing Probes Avoids Jail; Corey Flaum pleaded guilty to attempted market manipulation; He testified against JPMorgan gold traders who were convicted
Patricia Hurtado - Bloomberg
A former Bear Stearns Cos. precious-metals trader avoided prison for attempted market manipulation after the judge credited him with helping US prosecutors in their crackdown on the widespread practice of spoofing at big banks. Corey Flaum was a key government witness at the 2022 federal trial of JPMorgan Chase & Co. gold traders Gregg Smith and Michael Nowak, both of whom were convicted.
/jlne.ws/3PA0OKS
Ex-Goldman Associate Charged With Insider Trading
Austin Weinstein and Sridhar Natarajan - Bloomberg
Federal prosecutors charged a former employee at Goldman Sachs Group Inc. and Blackstone Inc. with securities fraud for allegedly tipping his friends to more than half a dozen deals. Anthony Viggiano, 26, tipped two friends to deals that Viggiano learned about at his time at the two Wall Street firms, the Justice Department and the Securities and Exchange Commission said Thursday. The charges detail how the group made more than $400,000 on trades passed around on messaging apps like Signal as well as Xbox chat.
/jlne.ws/3EVCOg7
Chicken, Pork Prices Made Higher by Meatpackers' Data Feed, DOJ Says
Patrick Thomas and Dave Michaels - The Wall Street Journal
The Justice Department on Thursday accused a data provider for the meatpacking industry of gathering and sharing nonpublic information that allowed its clients, some of the biggest poultry and pork processors in the U.S., to raise the prices they charged restaurants, grocery stores and consumers. The government's allegations center on Agri Stats, an Indiana company that gathers and shares information from pork- and poultry-processing plants.
/jlne.ws/3tabrwm
Circle Intervenes in Binance's SEC Case, Argues Stablecoins Aren't Securities
Jack Schickler - CoinDesk
Stablecoin issuer Circle has intervened in the Securities and Exchange Commission's case against major crypto exchange Binance, arguing that financial trading laws shouldn't spread to stablecoins whose value is tied to other assets. In June, regulators charged Binance with multiple legal violations for facilitating trades in cryptocurrencies, such as solana's SOL, cardano's ADA and the Binance stablecoin BUSD, which the SEC alleged constituted unregistered securities.
/jlne.ws/3rzKHoD
Nvidia linked to dawn raid by French competition regulators
Ian King - Bloomberg
French antitrust enforcers raided the offices of a business suspected of engaging in "anticompetitive practices in the graphics cards sector," targeting a company that the Wall Street Journal identified as Nvidia Corp. (NVDA) "Raids do not presuppose the existence of a breach of the law," France's competition authority said in a statement on its website, "which only a full investigation into the merits of the case could establish, if appropriate."
/jlne.ws/3RDc2kg
China Is Investing Billions in Global Disinformation Campaign, U.S. Says
Dustin Volz and Michael R. Gordon - Reuters
The Chinese government is pouring billions of dollars annually into a global campaign of disinformation, using investments abroad and an array of tactics to promote Beijing's geopolitical aims and squelch criticism of its policies, according to a new State Department assessment. Beijing's broad-ranging efforts, the assessment said, feature online bot and troll armies, legal actions against those critical of Chinese companies and investments and content-sharing agreements with media in Latin America and Africa.
/jlne.ws/46tAlW3
The mystery of Keith Gill, the Dumb Money hero who crashed Wall Street
Boris Starling - Financial Review
Keith Gill was an unlikely revolutionary. His T-shirts featured cats in sunglasses, his red headband made him look like a cross between peak-era John McEnroe and Cousin Greg from Succession, and his YouTube videos were long, dry analyses of corporate stocks.
/jlne.ws/3LIkpqZ
Market participants deep in preparation as FX market changes ramp up; The foreign exchange software market size is expected to be $16.4 billion by 2032 - with a compound annual growth rate of 7.6% - study predicts.
Claudia Preece - The Trade
As the FX landscape continues to undergo significant change, with market structure constantly developing and becoming increasingly complex, participants are focused on planning and predicting to stay ahead of the game. A recent Coalition Greenwich report delved into the top trends affecting FX market structure, pinpointing 'higher cost of accessing credit', 'more electronification of trade execution', and 'changing credit provision by banks' as the main drivers.
/jlne.ws/3LGACgC
Fireside Friday with... LSEG's Neill Penney and Bart Joris; LSEG's head of FX sell-side trading, Bart Joris, and group head of FX, Neill Penney, sit down with The TRADE to explore what the next stage of automation for NDFs, swaps and forwards might look like, and use cases for artificial intelligence in FX across post-trade and TCA.
Annabel Smith - The Trade
In which areas could AI be most useful in the FX markets?
Bart: People sometimes try to bring AI into areas where there is limited value or to showcase its use rather than to bring value to the front end. Where I think it's really helpful is where there's a vast amount of information you need to absorb and then base your decisions on a deducted answer. AI can help to find those correlations. I would suspect it's still a little too early to create any real trading models or decision making as the regulatory framework on controls and adoption of AI is undefined. However, reporting, TCA, idea generation, that's where I see AI coming in, where the machines can look for correlations over a much bigger piece of data. It is often underestimated how useful AI is in support.
/jlne.ws/3LD2fqL
Europe's Richest Royal Family Builds $300 Billion Finance Empire; Liechtenstein's Prince Hans-Adam II traces line back centuries; His LGT more than doubled AUM, operating income in past decade
Benjamin Stupples - Bloomberg
The top royal for one of the world's smallest nations heads a multibillion-dollar dynasty dating back almost 1,000 years that's endured through wars, floods and scandals. Today, the finance empire behind Liechtenstein's Prince Hans-Adam II is flourishing from its main area of expertise: managing money for the world's super-rich.
/jlne.ws/3LHHx8W
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Ukrainian forces are 'gradually gaining ground,' NATO chief says
Reuters
NATO Secretary General Jens Stoltenberg, on an unannounced visit to Kyiv, said on Thursday that Ukrainian forces were "gradually gaining ground" in their counteroffensive against Russian forces. Speaking at a joint press conference with Ukrainian President Volodymyr Zelenskiy, Stoltenberg said "every metre that Ukrainian forces regain is a metre that Russia loses".
/jlne.ws/3t7R6HT
Putin's shameless UN charm offensive - with stolen grain from Ukraine
Arpan Rai - Independent
A desperate Vladimir Putin, increasingly isolated on the world stage, is eyeing a return to the UN Human Rights Council - and he has launched a shameless charm offensive to get him there. Armed with stolen Ukrainian grain, the Russian president is on a mission to curry favour with potential backers ahead of a vote for council membership next month, although his efforts are likely to fall short.
/jlne.ws/3PEovBO
Putin has been ignoring his generals and directing the war himself, analysts say - and has been surprisingly cautious
Sophia Ankel - Business Insider
Russian President Vladimir Putin is making key decisions about the Ukraine war largely on his own, without input from his generals, analysts said in a report published last week. But while doing so, Putin has proven to be more cautious than expected, said the report from the US-based RAND Corporation.
/jlne.ws/3PzYPGf
Western-made armor isn't working in Ukraine because it wasn't designed for a conflict of this intensity, Ukrainian analyst says
Thibault Spirlet - Business Insider
Western-made armor is failing in Ukraine because it wasn't designed to sustain a conflict of this intensity, a military analyst told The Wall Street Journal. Taras Chmut, a military analyst who's the head of the Come Back Alive Foundation, which has raised money to purchase and provide arms and equipment to Ukraine, said that "a lot of Western armor doesn't work here because it had been created not for an all-out war but for conflicts of low or medium intensity."
/jlne.ws/46whPN0
Ukraine-Russia war latest: Russian air defences shoot down one of its most advanced fighter jets
Verity Bowman - The Telegraph
Russian air defences have shot down one of the country's most advanced jet fighters in a friendly-fire incident on Thursday night, according to reports. The Russian Su-35 was downed over Tokmak, Zaporizhzhia Oblast, which is the target of Ukraine's counteroffensive to retake territory. A Russian Telegram channel with close links to its air force appeared to confirm the incident on Friday when it paid tribute to the pilot, who did not survive.
/jlne.ws/3tankm6
The increasing absurdity of staying in Russia; Western companies still in the country face an ever harder time repatriating profits and risk state seizures
Anne-Sylvaine Chassany - Financial Times
/jlne.ws/3ry9iKp
Putin appoints Wagner commander to lead Ukraine militia ops; Andrei Troshev led fighters for years before falling out with his then-boss Yevgeny Prigozhin in June
Max Seddon - Financial Times
/jlne.ws/46bjpDW
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Re: Commodity Futures Trading Commission's Request for Comment on the Impact of Affiliations on Certain CFTC-Regulated Entities
CCP Global
The Global Association of Central Counterparties ("CCP Global") is the international association for central counterparties ("CCPs"), representing 42 members who operate over 60 individual CCPs across the Americas, EMEA, and the Asia-Pacific region. CCP Global appreciates the opportunity to respond to the Request for Comment on the Impact of Affiliations on Certain CFTC-Regulated Entities ("the Request") issued by the Commodity Futures Trading Commission ("CFTC" or "Commission"). We appreciate the CFTC's outreach to the industry to better inform its understanding of the impact of affiliations between designated contract markets ("DCMs"), derivatives clearing organizations ("DCOs"), and/or swap execution facilities ("SEFs") and intermediaries, such as a futures commission merchant ("FCM") or other market participants.
/jlne.ws/3LIz6KO
SGX FX wins maiden "Best FX Exchange APAC" at Euromoney Foreign Exchange Awards 2023
SGX
Award recognises SGX FX's leadership as the world's largest, fastest-growing and most liquid Asian FX futures exchange, combined with its leading OTC FX technology and workflow solutions. Multiple records in SGX FX's futures volume and open interest testify to its role in helping global investors navigate ever-changing markets and regulatory environments. SGX FX has been named "Best FX Exchange APAC" for the first time at the Euromoney Foreign Exchange Awards 2023, one of most reputable accreditations in the wholesale foreign exchange (FX) market.
/jlne.ws/46bODea
Cboe Global Markets Announces Date of Third-Quarter 2023 Earnings Release and Conference Call
Cboe Global Markets
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, will announce its financial results for the third quarter of 2023 before the market opens on Friday, November 3, 2023 . A conference call with remarks by the company's senior management will begin at 7:30 a.m. CT ( 8:30 a.m. ET ).
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HKEX and LCH look to expand eligible collateral
Jiefei Liu - Risk.net
Hong Kong's stock exchange and LCH are working to expand the list of securities they will accept as collateral, with the aim of combatting the Asia region's heavy reliance on cash for the exchange of margin on derivatives trades.
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Integrated Report JPX Report 2023
JPX
JPX Report 2023 (By sections) Mission for JPX Group. Creating Value at JPX Group. Strategies for Creating Value. Sustainability. Foundations for Value Creation. Financial and Corporate Data.
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SEBI inaugurates Common Investors Service Centre at Jammu with NSE & BSE
NSE
SEBI, NSE, and BSE have been actively involved in various initiatives and measures to enhance investor services and protection in India's securities market. To provide a comprehensive suite of securities market services to investors in the State of Jammu and Kashmir, SEBI along with Stock Exchanges - NSE and BSE have established a Common Investor Service Centre" (ISC) in Jammu. This Common ISC managed by NSE, was inaugurated on September 29, 2023, by Shri SVMD Rao, Executive Director, SEBI in the presence of Shri Pranjal Jayaswal, General Manager, SEBI, Mr. Joginder Singh - Vice President from National Stock Exchange of India Limited, Mr. Harbinder Singh Sokhi - Head Investors Initiatives - BSE Limited and other officers from SEBI, Exchanges and Depositories.
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | The promise - and peril - of generative AI; This technology is readily accessible and usable at extraordinary speed and scale
John Thornhill - Financial Times
Even though it was written 37 years ago, Melvin Kranzberg's first law of technology resonates today in our fast-evolving world of artificial intelligence. "Technology is neither good nor bad, nor is it neutral," Kranzberg wrote. As the historian explained, whether a technology is considered good or bad mostly depends on context and time. The same invention can produce different results in different contexts and these can change as circumstances evolve.
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UK pushes for greater access to AI's inner workings to assess risks; Government officials keen to understand fast-evolving technology ahead of a global summit
Cristina Criddle and Madhumita Murgia - Financial Times
The UK is pushing companies, including OpenAI and Google's DeepMind, for unprecedented access to the technology that drives their artificial intelligence models as Downing Street prepares to host a pioneering global AI summit.
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The Metaverse is real: Zuck's 'incredible' photorealistic tech wows crypto Twitter
Tom Mitchelhill - Cointelegraph
While critics have been busy writing eulogies for Meta's metaverse dream over the last few years, Mark Zuckerberg's latest demonstration of its photorealistic avatars shows it could be pretty far from dead after all. Appearing on a Sept. 28 episode of the Lex Fridman podcast, Zuckerberg and the popular computer scientist engaged in a one-hour, face-to-face conversation. Only, it wasn't actually in person at all.
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Fireblocks Buys Australian Blockchain Startup BlockFold
Anna Irrera - Bloomberg
Fireblocks Inc., the crypto company backed by Sequoia Capital and Coatue Management, has acquired BlockFold, a Melbourne-based startup that helps financial institutions build blockchain-based systems, people with knowledge of the matter said. Fireblocks paid about $10 million for BlockFold, said one of the people, who asked not to be identified as the deal hasn't been publicly announced. Representatives for both companies declined to comment.
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| Cybersecurity | | Top stories for cybersecurity | The Rising Threat of Mind-Reading Technology; On the Exponentially podcast, Azeem Azhar explores the implications for privacy with Professor Nita Farahany, who urges legal protections for our thoughts.
David Rovella - Bloomberg
On this episode of the Bloomberg podcast Exponentially, Azeem Azhar discusses the promise and peril of mind-reading technology with Professor Nita Farahany, the renowned bioethicist and neurotechnology specialist, who explains why we need a legal right to protect our thoughts. Farahany explains how the technology has ceased being the exclusive province of science fiction, and instead is appearing all around us-from new Apple iPhones to police stations.
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Cybersecurity Budgets Grow, But at a Slower Pace
James Rundle - The Wall Street Journal
Cybersecurity budgets have largely been protected from the worst consequences of economic uncertainty, but have hardly been untouched by wider trims to company spending. Stubborn inflation and the specter of an economic recession have spooked companies across all sectors, with some pulling back on hiring, cutting head count and in some cases, shutting down operations entirely.
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Government Shutdown Poised to Stress Nation's Cybersecurity Supply Chain
Becky Bracken - Dark Reading
The looming US federal government shutdown will put the nation's cybersecurity apparatus under intense strain, increasing the likelihood of cyberattacks across the country's entire software supply chain if Congress does not pass a budget by the Oct. 1 deadline, experts warn.
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| Cryptocurrencies | | Top stories for cryptocurrencies | Bankman-Fried Loses Another Bid for Release Days Before Trial
Bob Van Voris - Bloomberg
Sam Bankman-Fried lost yet another bid to be released from a Brooklyn federal jail days before he goes on trial in one of the biggest white-collar criminal cases in US history. US District Judge Lewis Kaplan on Thursday rejected Bankman-Fried's request to leave the Metropolitan Detention Center where he's been for the last six weeks.
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Judge Denies Temporary Release For Sam Bankman-Fried, Suggests He Could Face 'Very Long Sentence'
Helene Braun and Sam Kessler - CoinDesk
Sam Bankman-Fried will have to remain in jail for the duration of his trial, a federal judge ruled on Thursday, saying that the former FTX founder has had enough time to review material in preparation for the trial. But, Judge Lewis Kaplan ruled, Bankman-Fried will be made available to his attorneys at 7:00 a.m. ET every trial day with a caveat so they can discuss any issues before testimony begins.
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FTX Bankruptcy Claims Soar in Value in Over-the-Counter Markets as Estate Recovers $7.3B; One top distressed-debt investor describes FTX claims as the "hottest ticket in town."
Krisztian Sandor - CoinDesk
The crypto exchange FTX's bankruptcy has been characterized as one of the messiest in U.S. history. Legal fees in the bankruptcy case have already topped $200 million. Founder CEO Sam Bankman-Fried's criminal trial is scheduled to get under way next week. But in over-the-counter markets where investors trade bankruptcy claims, the level of expected payouts for FTX creditors has more than tripled this year - reflecting success in the estate's efforts to recover billions of dollars of assets.
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Inside Sam Bankman-Fried's Family Bubble
Sheelah Kolhatkar - The New Yorker
The Magistrates Court of the Bahamas, in Nassau, is situated in an imposing pink-and-white building edged with palm trees. On December 13, 2022, Sam Bankman-Fried, the former C.E.O. of the now bankrupt cryptocurrency exchange FTX, arrived there to ask for release on bail after being indicted on eight criminal charges. Bankman-Fried typically wears T-shirts and shorts, no matter the occasion; on this day, he wore, like armor, an ill-fitting navy-blue suit.
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Here's the Sam Bankman-Fried Trial Schedule; The court will only meet four days most weeks, the calendar shows.
Nikhilesh De - CoinDesk
Sam Bankman-Fried's trial is scheduled to start on Oct. 3, but the actual opening arguments are projected to begin a day later, a newly released court trial calendar shows. The document, posted to the public court docket on Thursday, shows that while most of October and the first week of November are dedicated to the trial, the court will not be in session between Oct. 20 and Oct. 25. Nov. 3 will also be a day off, as will Oct. 9 and Nov. 10 - both of which are public holidays.
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Cutting to the Chase in London; Plus, Binance exits Russia and Pokémon as a security token
Nikou Asgari - Financial Times
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Coinbase Receives Regulatory Approval to List Perpetual Futures Trading to Users Outside US
Camomile Shumba - CoinDesk
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Major TradFi Player VanEck Readies Ethereum Futures ETF
Aoyon Ashraf - CoinDesk
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Valkyrie Gets Approval to Start Buying ETH Futures For its Existing Bitcoin ETF
Aoyon Ashraf - CoinDesk
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BlackRock, Invesco Bitcoin ETF Applications Again Delayed by SEC; Regulator also delays decision for Bitwise, Valkyrie ETFs; Issuers are racing to debut a spot Bitcoin ETF in US market
Vildana Hajric - Bloomberg
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PayPal applies for NFT marketplace patent for on- or off-chain asset trading
Derek Anderson - Cointelegraph
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| Politics | | An overview of politics as it relates to the financial markets | US Senator Warren: Supreme Court CFPB case threatens all bank regulators
Douglas Gillison - Reuters
A case due to come before the U.S. Supreme Court next week has the potential to expose every federal bank regulator to political inference while also jeopardizing Social Security and Medicare, the federal health insurance program, U.S. Senator Elizabeth Warren said on Thursday.
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John Kerry: Energy transition is the 'new industrial revolution'; US climate envoy is worried by 'lack of reality' in some countries about global warming but is confident the market will drive green energy shift
FT reporters
Just over a year ago, the launch of President Joe Biden's $369bn Inflation Reduction Act (IRA) pushed the US into a new era of climate and energy policy. As country negotiators try to hammer out preliminary agreements ahead of the UN COP28 climate summit in November, US climate envoy John Kerry has been keen to emphasise the significance of this change in direction for the world's biggest oil and gas producer - and the wave of green investment the legislation has ushered in. The FT recently interviewed Kerry at an editorial roundtable in London, following his address in Edinburgh to launch a lectures series, known as the Scottish Global Dialogues.
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Fact Checkers Take Stock of Their Efforts: 'It's Not Getting Better'; The momentum behind organizations that aim to combat online falsehoods has started to taper off.
Tiffany Hsu and Stuart A. Thompson - The New York Times
After President Biden won the election nearly three years ago, three of every 10 Americans believed the false narrative that his victory resulted from fraud, a poll found. In the years since, fact checkers have debunked the claim in lengthy articles, corrections posted on viral content, videos and chat rooms.
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Texas Gov. Greg Abbott rings closing bell at New York Stock Exchange
Ariel Zilber - NY Post
Texas Gov. Greg Abbott rang the closing bell at the New York Stock Exchange on Thursday to celebrate an index that tracks the stocks of publicly traded companies headquartered in the Lone Star State. The Texas Capital Texas Equity Index ETF - whose holdings include blue-chip stocks Tesla, Exxon Mobil, Charles Schwab, Waste Management and Crowdstrike - began trading on the stock exchange on July 14.
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U.S. Races to Fortify Power Grid Against Extreme Weather
Scott Patterson - The Wall Street Journal
A gusher of cash is starting to pour out of Washington to carry out the Biden administration's plan to strengthen the U.S. power grid and make it more resilient to outages and extreme weather. The Energy Department on Thursday announced a new round of grants to tribes, territories and 11 states including Arizona, Florida and West Virginia as part of a $2.3 billion program designed to advance a key piece of the White House's clean-energy drive.
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Bulgarian Finance Chief Says Russia Trying to Block Path to Euro; Bulgaria sticks to 2025 euro adoption, finance minister says; Pro-Russian propaganda impacted Bulgarian stances on euro
Slav Okov - Bloomberg
Bulgaria accused Russia of boosting euroskeptic sentiment aimed at blocking the country's deeper integration in the European Union and adopting the bloc's single currency. Fake news websites, coordinated attacks and political parties with "very close ties to Russia" are bent on undermining trust in the euro in a campaign that peaked over the summer, Finance Minister Assen Vassilev said in an interview late Wednesday. He added that the country would stick to its plan to swap currencies by 2025.
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China's grip on critical minerals draws warnings at IEA gathering
Joe Deaux - Financial Review
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HSBC executive to leave after criticising UK's stance on China; Sherard Cowper-Coles said Britain had been 'weak' in response to US pressure
Stephen Morris and Kaye Wiggins - Financial Times
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HSBC's Cowper-Coles to Exit After Criticizing UK Stance on China; Head of public affairs is set to leave UK lender next month; Former diplomat had apologized for calling UK 'weak' at event
Ambereen Choudhury and Harry Wilson - Bloomberg
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Swiss indict daughter of former Uzbek president in bribery, money laundering case involving millions
Jamey Keaten - Associated Press
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Hong Kong Set to Name HKMA Official CEO of New $8 Billion Fund; New fund to invest in Greater Bay Area, growth firms; HK seeks to boost economy after years of sluggish growth
Kiuyan Wong - Bloomberg
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| Regulation & Enforcement | | Stories about regulation and the law. | Judge Kaplan really wants Sam Bankman-Fried to stay in jail: FTX cofounder's latest request for pretrial release is rejected
Ben Weiss - Fortune
The judge presiding over the trial of Sam Bankman-Fried on Thursday denied yet another motion asking for the pretrial release of the onetime CEO of FTX, a crypto exchange once valued at $32 billion that imploded in November. On Tuesday, Mark Cohen and Christian Everdell had asked Lewis Kaplan to let Bankman-Fried spend the trial outside of the Metropolitan Detention Center, the notorious Brooklyn prison where Bankman-Fried has spent the last month and a half in a cell after his bail was revoked in August.
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Former Goldman and Blackstone employee charged with insider trading; US prosecutors allege Anthony Viggiano passed tips about non-public information related to his employees
Joe Miller and Antoine Gara - Financial Times
A former Goldman Sachs and Blackstone Group employee has been charged with insider trading after allegedly tipping off close friends about a series of large deals, including a $2.2bn investment by the private-equity group into insurer AIG. In an indictment unsealed on Thursday, federal prosecutors said 26-year-old New Yorker Anthony Viggiano had passed on material non-public information to co-defendant Stephen Forlano.
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The CFTC and California Department of Financial Protection & Innovation Charge Los Angeles Area Precious Metals Dealer in $21 Million Fraudulent Scheme
Commodity Futures Trading Commission
The Commodity Futures Trading Commission and the California Department of Financial Protection & Innovation (DFPI) today announced a joint civil enforcement action in the U.S. District Court for the Central District of California against precious metals dealer Regal Assets LLC, its owner and CEO Tyler G. Gallagher, and its former President Leah Donoso, charging them with misappropriating more than $21 million in a nationwide fraudulent scheme.
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CFTC Orders a Colorado Commodity Pool Operator and Its Owner to Pay More Than $475,000 for Fraud Violations
Commodity Futures Trading Commission
The Commodity Futures Trading Commission today issued an order simultaneously filing and settling charges against Colorado-based Highland Quantitative Driven Investments LLC, a formerly registered commodity pool operator, and its owner, Colorado resident Michael T. Zatorski, a formerly registered associated person of Highland.
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Statement of Commissioner Kristin N. Johnson: The Continuing Surge of Forex Investment Fraud
Commodity Futures Trading Commission
Today the Commodity Futures Trading Commission (CFTC) announced the filing of a complaint in the United States District Court for the Eastern District of Michigan against Darren Robinson and his company The QYU Holdings Inc. According to the complaint, the Defendants engaged in a type of fraud that has become all too common lately: foreign currency (forex) investment scams.
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Chairman Behnam to Deliver the Keynote Address and Participate in a Fireside Chat at FIA Expo 2023
Commodity Futures Trading Commission
Chairman Rostin Behnam will deliver the keynote address and participate in a fireside chat at FIA Expo 2023.
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CFTC Orders Interactive Brokers to Pay $20 Million for Recordkeeping and Supervision Failures for Widespread Use of Unapproved Communication Methods
CFTC
The Commodity Futures Trading Commission today issued an order simultaneously filing and settling charges against Interactive Brokers Corp., an introducing broker, and Interactive Brokers LLC, a futures commission merchant, for failing to maintain and preserve records that were required to be kept under CFTC recordkeeping requirements, and failing to diligently supervise matters related to their businesses as CFTC registrants.
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The SEC Is About To Rock Your World
Mark Hurley and Brian Hamburger - Financial Advisor
The SEC is about to upend your firm when it comes to cybersecurity. Last year, the agency proposed a series of new rules, heading toward approval likely later this year. Although not yet final, they are going to shake up the ways RIAs run their businesses. The agency has been talking about cybersecurity for some time.
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SEC Charges Former Pareteum Executives with Accounting and Disclosure Fraud
U.S. Securities Exchange Commission
The Securities and Exchange Commission today announced charges against the former Chief Financial Officer, Edward O'Donnell, and the former Chief Commercial Officer, Victor Bozzo, of New York-based telecommunications company Pareteum Corp. for engaging in fraudulent revenue recognition practices. The SEC also announced settled charges against Pareteum's former Controller, Stanley Stefanski, for his role in the scheme.
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Valkyrie will offer exposure to Ether futures as SEC delays spot Bitcoin ETF
Turner Wright - Cointelegraph
Asset management firm Valkyrie will begin offering exposure to Ether futures to United States investors through its existing Bitcoin Strategy exchange-traded fund, or ETF.
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SEC delays spot Bitcoin ETF decision for BlackRock, Invesco and Bitwise
Brayden Lindera - Cointelegraph
The United States Securities and Exchange Commission has delayed its decision on several proposals for spot Bitcoin BTC exchange-traded funds (ETFs), including BlackRock, ahead of an anticipated government shutdown. The spot Bitcoin ETF applications of Invesco, Bitwise and Valkyrie were also delayed by the SEC, according to separate Sept. 28 filings, while Bloomberg ETF analyst James Seyffart is expecting the applications from Fidelity, VanEck and WidsomTree to also be pushed back by the securities regulator.
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SEC Charges 10 Firms with Widespread Recordkeeping Failures
SEC
The Securities and Exchange Commission today announced charges against five broker-dealers, three dually registered broker-dealers and investment advisers, and two affiliated investment advisers for widespread and longstanding failures to maintain and preserve electronic communications. The firms admitted the facts set forth in their respective SEC orders and acknowledged that their conduct violated recordkeeping provisions of the federal securities laws. The firms agreed to pay combined penalties of $79 million as outlined below and have begun implementing improvements to their compliance policies and procedures to address these violations.
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SEC Charges Electric Vehicle Co. for Misleading Revenue Projections Ahead of SPAC Merger
SEC
The Securities and Exchange Commission today charged Denver-based Spruce Power Holding Corporation, the successor to XL Fleet Corp., for misleading investors about revenue projections that topped $1 billion within three years of going public. XL Fleet, which provided hybrid electric vehicle systems for commercial fleet vehicles, went public through a 2020 merger with a special purpose acquisition company (SPAC).
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Albemarle Corp. to Pay SEC More Than $103 Million to Settle FCPA Violations
SEC
The Securities and Exchange Commission today announced that Charlotte-based Albemarle Corporation, a global specialty chemicals company, agreed to pay more than $103.6 million to settle the SEC's charges that it violated the anti-bribery, recordkeeping, and internal accounting controls provisions of the Foreign Corrupt Practices Act (FCPA).
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SEC Charges Newell Brands and Former CEO for Misleading Investors About Sales Performance
SEC
The Securities and Exchange Commission today charged Newell Brands Inc., a Georgia-based consumer products company and its former CEO, Michael Polk, with misleading investors about Newell's core sales growth, a non-GAAP (Generally Accepted Accounting Principles) financial measure the company used to explain its underlying sales trends. Both parties agreed to settle the SEC charges.
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SEC Charges Two Credit Rating Agencies, DBRS and KBRA, with Longstanding Recordkeeping Failures
SEC
The Securities and Exchange Commission today announced charges against credit rating agencies DBRS Inc. and Kroll Bond Rating Agency, LLC (KBRA) for longstanding failures to preserve electronic records, including off-channel communications on personal and work-issued devices. Additionally, the SEC charged DBRS with violating disclosure and internal control provisions of the federal securities laws in rating certain commercial mortgage-backed securities (CMBS). To settle the charges, DBRS agreed to pay $8 million in civil penalties and KBRA agreed to pay $4 million in civil penalties.
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SEC Charges Exelon Subsidiary Commonwealth Edison's Former CEO Anne Pramaggiore with Fraud in Connection with Political Corruption Scheme
SEC
The Securities and Exchange Commission filed fraud charges against Anne Pramaggiore, former CEO of Exelon subsidiary, Commonwealth Edison Company (ComEd), in connection with a multi-year scheme to corruptly influence and reward then-Speaker of the Illinois House of Representatives Michael Madigan.
/jlne.ws/3PYfJQc
SEC Charges Former Pareteum Executives with Accounting and Disclosure Fraud
SEC
The Securities and Exchange Commission today announced charges against the former Chief Financial Officer, Edward O'Donnell, and the former Chief Commercial Officer, Victor Bozzo, of New York-based telecommunications company Pareteum Corp. for engaging in fraudulent revenue recognition practices. The SEC also announced settled charges against Pareteum's former Controller, Stanley Stefanski, for his role in the scheme. Pareteum previously settled to accounting and disclosure fraud charges filed by the SEC in 2021 and filed for bankruptcy in 2022.
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SEC Charges Former Financial Industry Analyst and Three Others with Insider Trading
SEC
The Securities and Exchange Commission today filed charges against Anthony Viggiano, a former analyst at a major investment firm and later at an international investment bank, and Christopher Salamone, Stephen A. Forlano, and Nathan Bleckley, for insider trading in advance of numerous merger and acquisition transactions.
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SEC Charges Three Southern California Siblings with Insider Trading
SEC
Yesterday, the Securities and Exchange Commission filed charges against siblings Marco A. Perez (aka Marc), Pedro Perez, Jr. (aka Peter), and Olivia P. Durbin for insider trading before the April 2021 announcement of an offer by storage company United Rentals Inc. to acquire General Finance Corp. The three defendants, all of whom reside in Southern California, realized a combined total of $650,000 in illegal profits from their trading.
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SEC Charges Five Registered Representatives with Violations of Regulation Best Interest and Fraud for Excessive Trading in Customer Accounts
SEC
The Securities and Exchange Commission today filed charges against Michael Blumer, John Kuprianchik, David Page, Steven Thompson, and Joseph Todaro, who were registered representatives of Salomon Whitney LLC, a broker-dealer doing business under the name SW Financial, for recommending a short-term, high-volume investment strategy to at least sixteen retail customers without a reasonable basis.
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SEC Charges Former Broker with Misappropriating Funds from Customers
SEC
The Securities and Exchange Commission charged Ronald E. Filoramo, a former securities broker and investment adviser representative for Morgan Stanley Smith Barney, with stealing $761,000 from two long-standing customers.
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SEC Charges Illinois and New Jersey Promoters of Multi-Million Dollar CoinDeal Scheme
SEC
The Securities and Exchange Commission today charged Arline Woodbury of Ridgewood, New Jersey and Joyce Holverson of River Forest, Illinois for their involvement in a fraudulent investment scheme named CoinDeal that raised millions of dollars through false claims of trillion-dollar returns.
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ESMA Work Programme 2024 focus on digital change and the green transition
ESMA
ESMA Work Programme 2024 focus on digital change and the green transition - Press Release
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FMA consults on proposed liquidity risk management guidance
Financial Markets Authority
The Financial Markets Authority (FMA) -Te Mana Tatai Hokohoko - has released proposed guidance for Managed Investment Scheme (MIS) managers and their supervisors for effective liquidity risk management (LRM). Effective LRM is essential to reduce the risk of investor harm when there are significant fund redemption requests. Poor LRM in those circumstances may force an investment manager to sell less liquid assets, like some types of property investment, for whatever price they can get, which impacts the return of all fund investors. Or, the manager may have to sell a lot of more liquid assets - like large companies - which suits the withdrawing investors but raises the risk of the fund, making it unfair to the remaining investors. Effective LRM will also reduce the risk of a liquidity crisis in one fund spreading to other managed funds.
/jlne.ws/3tlFssY
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Nestle Says People Are Consuming Less Food and Beverages; Consumers may be eating less or wasting less, CFO says; CFO Francois-Xavier Roger says slowdown won't continue
Dasha Afanasieva - Bloomberg
Nestle SA said the total amount of food and drink sold globally has been falling since the start of the year, highlighting the challenge for the sector. "People are consuming less, or they're eating less or they're wasting less or they're eating more out of home," outgoing Chief Financial Officer Francois-Xavier Roger said during a Bernstein conference Thursday. "It's difficult to know. I don't think it will last."
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Trading in Diesel Options Is Going Crazy
Alex Longley - Bloomberg
For the past month, an obscure corner of the oil market has been bristling with activity. Trading of options contracts on ICE gasoil, Europe's benchmark diesel contract, climbed to the highest level since 2014 in September, according to exchange data. Volumes have so far totaled about 75,000 contracts.
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What the Rise in Subdollar Stock Volume Means for Institutional Trading
Mike Smith - Square Edge
Historically, trading in subdollar symbols was limited to 4-5% of market volume. In the past year, that's risen to new all-time highs above 15% and stayed consistently in the double digits. While that still may feel irrelevant in terms of notional volume, in terms of shares traded, it's become a significant trend.
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Why fear is spreading in financial markets; Investors have begun to confront the long-haul reality of high interest rates
The Economist
According to T.S. Eliot, April is the cruellest month. Shareholders would disagree. For them, it is September. The rest of the year stocks tend to rise more often than not. Since 1928, the ratio of monthly gains to losses in America's s&p 500 index, excluding September, has been about 60/40. But the autumn chill seems to do something to the market's psyche. In September the index has dropped 55% of the time. True to form, after a jittery August it has spent recent weeks falling.
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The ETF Is Finally Hitting Its Stride in Europe; Yet another US-based issuer has crossed the pond to join a growing market.
Eric Balchunas and Joel Weber - Bloomberg
Cathie Wood's Ark Invest recently purchased European exchange-traded fund issuer Rize. The move shows yet another US-based issuer bringing their talents to Europe, a market that while only a fraction the size of the US is growing quickly.
/jlne.ws/3PCXyy7
Market participants deep in preparation as FX market changes ramp up; The foreign exchange software market size is expected to be $16.4 billion by 2032 - with a compound annual growth rate of 7.6% - study predicts.
Claudia Preece - The Trade
As the FX landscape continues to undergo significant change, with market structure constantly developing and becoming increasingly complex, participants are focused on planning and predicting to stay ahead of the game. A recent Coalition Greenwich report delved into the top trends affecting FX market structure, pinpointing 'higher cost of accessing credit', 'more electronification of trade execution', and 'changing credit provision by banks' as the main drivers.
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Populism could derail the green transition; Western politicians are scared of a backlash against climate change policies that have been sold as good for the economy
Gideon Rachman - Financial Times
Climate news sometimes feels almost too painful to read. I had to force myself to get through last week's report that levels of Antarctic sea-ice are shrinking at "mind-blowing" speeds. But while the environment is telling us to move much faster in the fight against global warming, some political leaders want to slow down. Newspapers have been full of headlines about Rishi Sunak's U-turn on environmental policies. Britain's prime minister is not alone. The pressures he has bowed to are weighing down on leaders across the western world.
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The Climate Sleuth Uncovering Methane Leaks for the United Nations; Itziar Irakulis Loitxate is a 27-year-old Ph.D. student who is the closest thing the world has to climate police.
Aaron Clark - Bloomberg
Like a detective gathering clues, Itziar Irakulis Loitxate scans her computer monitor looking for yellow-colored clouds in satellite data that suggest the presence of methane, a pernicious greenhouse gas that can escape from the Earth when coal, oil and fossil gas are produced. The 27-year-old Ph.D. student isn't a detective but she may be the closest thing the world has to climate police. She's one of the world's foremost remote sensing scientists who uses satellite observations to identify some of the most damaging emissions.
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How a Government Shutdown Would Slow US Climate Efforts; Delays could impact long-term federal disaster assistance and guidance on corporate tax breaks for clean energy.
Zahra Hirji - Bloomberg
The US government is days away from potentially shutting down, a move that would impact public access to many national parks and could hamper the country's ability to respond to the climate crisis. As of Friday morning, Congress had yet to agree on a spending bill for the fiscal year that begins Oct. 1. A short-term bipartisan deal negotiated in the Senate was not taken up by the House. The last government shutdown, at the end of 2018, lasted 35 days and caused $3 billion in permanent losses, according to the Congressional Budget Office.
/jlne.ws/3EYSqQi
What Is ESG Investing and What Financial Risks Does It Highlight?
Saijel Kishan - Bloomberg
In one sense, defining "ESG" is easy - it's an approach to finance and investing focused on managing risks from environmental factors, social issues and questions of corporate governance. Sorting out the differences between ESG and similar, sometimes overlapping strategies is harder, in part because the term has come to mean different things to different people.
/jlne.ws/3ET79MB
$67 Billion of Rare Minerals Is Buried Under One of the World's Biggest Carbon Sinks
Vipal Monga - The Wall Street Journal
The pace of the global transition to electric vehicles depends on the future of a remote region in Canada known as the Ring of Fire. Located underneath a distant, swampy expanse of spruce forests and meandering rivers in Northern Ontario that is cut off from major roads, the Ring of Fire is seen by industry and government officials as one of the world's most important untapped sources of nickel, copper and cobalt-metals essential for making the batteries that power electric vehicles.
/jlne.ws/48vZLEp
Inside the Decadeslong Permit Process Holding Back 10,000 Energy Projects
The Wall Street Journal
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Big insurers cover dirty coal mining projects despite climate pledges; Gap between promises and reality remains wide ahead of 2030 net zero emissions deadlines, analysts say
Kenza Bryan - Financial Times
/jlne.ws/46swZT7
How to Keep Fossil Fuels in the Ground, From the Boardroom; "Shareholders have so much power that has been underexploited," says Brynn O'Brien of the Australasian Centre for Corporate Responsibility on this week's Zero.
Christine Driscoll, Akshat Rathi, and Oscar Boyd - Bloomberg
/jlne.ws/3PDRa9U
What Arizona and other drought-ridden states can learn from Israel; The Grand Canyon state can turn to the tiny desert nation's pioneering water strategy.
Gabriel Eckstein, Clive Lipchin and Sharon B. Megdal - GreenBiz
/jlne.ws/45bWvv3
For Sanibel, the Recovery from Hurricane Ian Will Be Years in the Making; Thousands of residents of this barrier island remain displaced a year after the costliest hurricane in state history.
Amy Green - Inside Climate News
/jlne.ws/3PxvwEt
DeBriefed 29 September 2023: Focus on carbon offsets; UK expands oil and gas; IEA's path to 1.5C unpacked
Carbon Brief
/jlne.ws/3t40jRx
Inside the IEA's new critical mineral security masterplan
Cecilia Keating - BusinessGreen
/jlne.ws/3LDnCIo
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Judge Denies Temporary Release For Sam Bankman-Fried, Suggests He Could Face 'Very Long Sentence'
Helene Braun and Sam Kessler - CoinDesk
Sam Bankman-Fried will have to remain in jail for the duration of his trial, a federal judge ruled on Thursday, saying that the former FTX founder has had enough time to review material in preparation for the trial. But, Judge Lewis Kaplan ruled, Bankman-Fried will be made available to his attorneys at 7:00 a.m. ET every trial day with a caveat so they can discuss any issues before testimony begins.
/jlne.ws/3tcdVud
Brazil's central bank seeks tighter cryptocurrency regulation, brokerage oversight
Reuters
Brazil's central bank governor Roberto Campos Neto on Wednesday said policymakers are aiming to tighten cryptocurrency regulation and subject brokerages to their supervision. Speaking during a hearing in Congress, Campos Neto emphasized regulators will scrutinize the backing of cryptocurrencies and associated activities, given the significant surge in cryptocurrency imports by Brazilians.
/jlne.ws/3rvEUQY
Banking Giants Abuzz About Tokenization of Real-World Assets as DeFi Craves Collateral
Ian Allison - CoinDesk
Banks and blockchains: Together at last? Tokenization, the blockchain-based ownership and exchange of real-world assets (RWA), was one of the buzzwords at last week's Sibos conference in Toronto, the global banking industry's annual technology convention. Old hands in the cryptocurrency field are probably rolling their eyes, remembering the "blockchain, not bitcoin" narrative that was popular circa 2016.
/jlne.ws/3PXkuK7
Ripple Cancels Plan to Buy Fortress Trust
Aoyon Ashraf - CoinDesk
Ripple said it won't go forward with its outright acquisition of Nevada-based chartered trust company Fortress Trust. "A few weeks ago, we signed a letter of intent to acquire Fortress Trust - we've since made the decision not to move forward with an outright acquisition, though Ripple will remain an investor," Ripple's CEO Brad Garlinghouse said on social media platform X (formerly Twitter).
/jlne.ws/3PY0Xcc
Inside JPMorgan's Year of Being Haunted by Jeffrey Epstein; Bank's past ties to notorious sex offender come home to roost; Firm agreed to pay $365 million to settle two cases this year
Hannah Levitt and Ava Benny-Morrison - Bloomberg
Jamie Dimon wasn't going to be embarrassed into a settlement. As damaging revelations about the extent of JPMorgan Chase & Co.'s relationship with Jeffrey Epstein trickled out of a lawsuit this year, his bank balked at paying up. The longtime JPMorgan chief told colleagues he saw the fight as one of "principle."
/jlne.ws/3rxYkEJ
FTSE Holds Off From Adding South Korea, India to Key Bond Indexes; Potential inclusions of both countries had been keenly awaited; JPMorgan added India to flagship EM bond index last week
Hooyeon Kim and Ronojoy Mazumdar - Bloomberg
/jlne.ws/3RznxcB
FTSE Russell announces the results of its 2023 annual country classification review for equities and fixed income
FTSE Russell
/jlne.ws/3EWEq9u
Credit Suisse sheds nearly 13% of workforce
Reuters
/jlne.ws/46yXS8d
Credit Suisse sees Q3 loss of $1.6 billion from reclassifying loans
Reuters
/jlne.ws/3ZCGs8h
Credit Suisse warns of $2.2bn loss as UBS plans to end Apollo deal; Exiting loans placed in the combined group's 'bad bank' will lead to losses
Owen Walker - Financial Times
/jlne.ws/3ZzKQVy
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | There's Lots of Ineffective Drugs on Store Shelves, Just Ask Your Pharmacist
Randy C. Hatton and Leslie Hendeles - The New York Times (Opinion)
Dr. Hatton and Dr. Hendeles are pharmaceutical experts with the University of Florida who petitioned the Food and Drug Administration to remove a popular but ineffective decongestant.
Nearly two decades ago, several pharmacists started calling into the University of Florida Drug Information and Pharmacy Resource Center hotline with the same query: Does phenylephrine, a common ingredient in cold medicine sold over the counter, actually work? One of us, Dr. Randy Hatton, oversaw the call center, which was meant to train pharmacy students on how to respond to questions from health care professionals across the state. It was odd, Dr. Hatton thought, that so many providers in Florida believed the popular decongestant - found in Sudafed PE, some formulations of NyQuil and many other cold and flu treatments - wasn't working as advertised.
/jlne.ws/3LIzIjo
School days are incompatible with parents' work day, and kids are not getting enough sleep
Kelly Burch - Business Insider
Liz Fuller-Wright, a New Jersey mom, said her sons' school schedules were "completely incompatible" with full-time work. "I can't schedule late afternoon meetings, I can't participate in the end-of-day socialization around the watercooler that is so vital for supporting work relationships, plus I have to put in a third or fourth shift after the boys are in bed when I can finally focus again," said Fuller-Wright, whose boys are 4 and 7. It's a frustration that's common for many American parents. The stereotypical workday stretches from 9 to 5, while the typical school day runs from 8 to 3. That leaves many working parents with a conundrum that many people recognize, but few institutions have been able to change.
/jlne.ws/3ZyfP4p
Some Banks Are Actually Sticking With WFH; Fights over productivity distract from more practical, even CEO-friendly, benefits.
Lionel Laurent - Bloomberg
There's a scene in Walter Isaacson's biography of Elon Musk in which the billionaire angrily discovers just how few workers are on-site at Twitter Inc.'s lavish 11-story headquarters despite its shrinking revenue and widening losses. He orders a burning-hot coffee, bats away fears of deep job cuts (only to carry them out later), and in his first missive to staff bans remote work.
/jlne.ws/3ZEFFnw
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Mosquitoes Are a Growing Public Health Threat, Reversing Years of Progress; Climate change and the rapid evolution of the insect have helped drive up malaria deaths and brought dengue and other mosquito-borne viruses to places that never had to worry about them.
Stephanie Nolen - The New York Times
Along hundreds of miles of Lake Victoria's shoreline in Kenya, a squadron of young scientists and an army of volunteers are waging an all-out war on a creature that threatens the health of more people than any other on earth: the mosquito. They are testing new insecticides and ingenious new ways to deliver them. They are peering in windows at night, watching for the mosquitoes that home in on sleeping people. They are collecting blood - from babies, from moto-taxi drivers, from goat herders and from their goats - to track the parasites the mosquitoes carry.
/jlne.ws/467PqNb
Overworked and understaffed: Kaiser workers are on the brink of a nationwide strike
Danielle Kaye - NPR
Yet another group of crucial workers is just days away from a nationwide walkout. More than 75,000 workers at one of the nation's largest health care providers, Kaiser Permanente, could go on strike next Wednesday if there's no agreement between their unions and their employer. A final round of in-person negotiations is scheduled to start on Friday, before the current contract expires on Saturday.
/jlne.ws/3EYltn6
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Like New Zealand Sauvignon Blanc? Don't Miss Out on These Other Great Kiwi Wines
Lettie Teague - The Wall Street Journal
Recently I asked the manager of a large wine store on the Upper East Side of Manhattan, "Do you have any New Zealand wines that aren't Sauvignon Blanc?" The answer was no. I wasn't surprised. After all, this variety accounts for the vast majority (about 89%) of New Zealand's wine exports, and almost five times more Sauvignon Blanc than Pinot Noir, the country's second-most-popular grape, is currently planted there.
/jlne.ws/3rvuosO
Oil Tanks Are Running Dry at Biggest US Crude Storage Hub
Devika Krishna Kumar - Bloomberg
Crude tanks at the largest US storage hub and the pricing point for millions of dollars worth of oil contracts are running dry, threatening their ability to operate normally and sending prices for near-term supplies surging. Stockpiles at Cushing, Oklahoma - the delivery point for benchmark US crude futures - tumbled below 22 million barrels last week, the lowest since July 2022, according to government data released Wednesday.
/jlne.ws/3PzA3WT
The Housing Market Is Defrosting in Florida's Microwave
Jessica Karl - Bloomberg Opinion
What would you like first: The good news or the bad news? Agh, fine, I'll be nice. It is the harvest moon - a time for self-reflection - after all. The good news is that the housing market seems to be miraculously unfreezing itself. Cue the applause! The confetti! The oyster shooters!
/jlne.ws/48zouYh
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| Miscellaneous | | Stories that don't quite fit under the other sections | Democracies need to work quicker and smarter. Here's what that might look like; Politicians often reach the right answer - but years too late
Simon Kuper - Financial Times
In 1988, James Hansen, head of the Nasa Goddard Institute for Space Studies, told a US Senate committee: "The greenhouse effect has been detected, and it is changing our climate now." Thirty-five years later, the US government is at last trying to do something about it. The political trajectory with artificial intelligence is similar. Alan Turing, the scientist who formulated the concept of AI, predicted in 1951: "At some stage we should have to expect the machines to take control." Only now is this notion entering mainstream political debate.In short, democracies tend either to act too late, or quickly but stupidly. That's suboptimal, especially as life speeds up. AI advances almost weekly, while viruses can cross the planet on a plane.
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