| February 01, 2022 | "Irreverent, but never irrelevant" | | | | John Lothian
Publisher
John Lothian News | |
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Huge Growth in Options Trading Comes to Institutions
Sarah Rudolph - John Lothian News
The enormous recent growth in options trading has mostly been focused on retail traders, but the use of options has also been growing among "'40 Act" funds, which are SEC-regulated funds governed by the U.S. Investment Company Act of 1940. These include ETFs, mutual funds, and closed-end funds, according to Matt Moran, head of index insights at the Cboe Options Institute. He spoke, along with three other industry experts, in a webinar from the Institute on Wednesday Jan. 26 and in a separate interview with John Lothian News in advance of the webinar.
Many of these funds, including those offered by First Trust, Calamos, and Innovator, are based in or around Chicago, Moran said. They do not include hedge funds, which are somewhat less regulated, and most of these funds use fairly conservative strategies, he added.
Many of the new options-based funds use target income or buffer protect strategies. Cboe Global Markets has some benchmark indexes for these strategies, with which fund managers may strive to eliminate 10% of an investor's downside risk.
Read the rest of this story HERE.
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Hits & Takes
John Lothian & JLN Staff
On December 20, the International Financial Law Review published the results of its US Dollar Libor Survey for 2021 and published a story with the headline "AMERIBOR is the Dominant Credit-Sensitive LIBOR Replacement, New Survey Finds; More than half of debt market participants surveyed say they require a credit-sensitive rate, 70% prefer AMERIBOR over alternatives." The AFX decided to pay to have this story released to the public, which it now is and can be found HERE. The survey itself can be found HERE.
Eurex launched 40 new Equity Total Return Futures yesterday, expanding the Eurex offering in this segment to 290 companies. Essentially Eurex is swapping a swap for futures by listing the TRF contracts as an alternative to the OTC total return swaps.
Nasdaq was recognized as a "Best Place to Work for LGBTQ+ Equality" for the fourth consecutive year by the Human Rights Campaign (HRC) Foundation, which conducts an annual assessment and report on corporate policies and practices related to LGBTQ+ workplace equality. In the 2022 Corporate Equality Index (CEI) from HRC, Nasdaq received a perfect score on HRC's assessment of LGBTQ+ workplace equality.
The World Federation of Exchanges' February edition of Focus is out with the following articles:
Saudi Tadawul Group: A Successful IPO Laying the Foundations for Future Growth, By: Eng. Khalid al Hussan, Chief Executive Officer, Saudi Tadawul Group TMX Group's John McKenzie on Making Markets Better Borsa Istanbul - A Look at the Horizon After Historic Highs in 2021 JPX Survey Shows Companies' Response to Climate Disclosures Shenzhen Stock Exchange's Registration-Based IPO System Is Supporting Innovation and Development The World Federation of Exchanges Identifies Policy Levers to Encourage SME Listings Market capitalisation There were many images and messages on LinkedIn celebrating the Year of the Tiger, but I liked HKEX's animated video with music the best.
Steptoe has a webinar coming up on February 3 from 12 p.m. to 1 p.m. ET titled, "What's Happening in the World of Bankruptcy." It features James M. Carolan, Jeffrey M. Reisner, and Joshua R. Taylor. You can find more details HERE and register HERE.
I liked this comment from Josh Sterling, a partner at Jones Day and former CFTC division director. He wrote on LinkedIn about the SEC's proposed "Rules to Extend Regulations ATS and SCI to Treasuries and Other Government Securities Markets":
Is the #SEC trying to pull a fast one on #digitalasset platforms? Buried in last week's #ATS release (https://lnkd.in/eQKqFqBb) is a proposal to include "communication protocols" in a definition that triggers possible exchange or ATS registration. No explanation, no signposting, and a stunningly short comment period. This is not how the best capital markets in the world should be regulated. If you would like an invoice for your 2022 JLN subscription, please email me at johnlothian@johnlothian.com.
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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U.S. lawmakers traded an estimated $355 million of stock last year. These were the biggest buyers and sellers.
Victor Reklaitis - MarketWatch
Congress resembled a Wall Street trading desk last year, with lawmakers making an estimated total of $355 million worth of stock trades, buying and selling shares of companies based in the U.S. and around the world. At least 113 lawmakers have disclosed stock transactions that were made in 2021 by themselves or family members, according to a Capitol Trades analysis of disclosures and MarketWatch reporting. U.S. lawmakers bought an estimated $180 million worth of stock last year and sold $175 million.
/jlne.ws/3sqTN3B
***** Make the lawmakers post them in real-time, just like traders do on the app Public. It is very easy.~JJL
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Taxes 2022: The neediest Americans must wait longer for tax refunds
Janna Herron - Yahoo Finance
Some of the neediest Americans won't get their tax refund until at least March — no matter how early they file their taxes. The wait comes as many struggle after the monthly Child Tax Credit (CTC) payments expired.
/jlne.ws/3Hgxl3i
***** I must be very needy. I am STILL awaiting my refunds from 2019 and 2020.~JJL
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Pope blesses those everyone loves to hate - tax collectors
Philip Pullella - Reuters
Pope Francis on Monday encouraged the people everyone loves to hate - tax collectors - telling them that while they will never win popularity contests, they were vital for the functioning of a fair society. "Your work appears to be thankless ...," he told a delegation from the Agenzia delle Entrate, Italy's revenue agency, acknowledging that taxation was often seen as "putting your hands in other people's pockets."
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***** Part of the problem is there are not enough tax collectors at the IRS to bless.~JJL
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What We Can Learn From How the 1918 Pandemic Ended
John M. Barry - NY Times
Most histories of the 1918 influenza pandemic that killed at least 50 million people worldwide say it ended in the summer of 1919 when a third wave of the respiratory contagion finally subsided. Yet the virus continued to kill. A variant that emerged in 1920 was lethal enough that it should have counted as a fourth wave. In some cities, among them Detroit, Milwaukee, Minneapolis and Kansas City, Mo., deaths exceeded even those in the second wave, responsible for most of the pandemic's deaths in the United States. This occurred despite the fact that the U.S. population had plenty of natural immunity from the influenza virus after two years of several waves of infection and after viral lethality in the third wave had already decreased.
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***** I have learned that it is very difficult to learn while I have my head stuck firmly in the sand.~JJL
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Woman Says Fund Told Her to Cut Goldman Sachs From Her Resume
Ellen Milligan - Bloomberg
Ex-Olympian is suing London fund for sex discrimination; Genesis denies telling ex-partner to remove bank from her CV
An ex-Goldman Sachs Group Inc. banker said a London fund used the fact that she worked at the storied U.S. investment bank against her, telling her to remove any reference to it on her resume. Sedef Koktenturk sued London-based Genesis Investment Management for sex discrimination after she was fired following informal complaints about her management style. She alleged in the suit that the fund applied double-standards when it came to the behavior of her, and her male colleagues, and that if she were a man, her "success and direct approach" would have been prized by the firm. Genesis denies the claim and is defending the suit.
/jlne.ws/3GkGjLk
***** I would have sued for Sachs discrimination too.~JJL
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Monday's Top Three
Our top story Monday - by a lot - was The Moral Calculations of a Billionaire, from The Washington Post, the story of Leon Cooperman, the son of an immigrant plumber, who went on to become a Wall Street trader and hedge fund manager. Second was How to Find and Keep Friends: A Guide for Middle Age, from The Wall Street Journal. And third was White House Wants Crypto Rules as a Matter of National Security, from Barron's.
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MarketsWiki Stats
26,702 pages; 237,201 edits
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| All MarketsWiki Sponsors» | | | | | | | John Lothian News (JLN) is the news division of John J. Lothian & Company, Inc. (JJLCO). The online media and financial services firm is staffed by derivatives industry, journalism and technology professionals. | | | | | | | John Lothian News Editorial Staff: | | | John Lothian
Publisher | | | Sarah Rudolph
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| Lead Stories | US options trading heats up even as speculative stock rally cools
Industry participants see 'no sign' US equities wobble has caused exodus from derivatives bets
Madison Darbyshire and Philip Stafford - FT
Investors are turning to derivatives to make supercharged bets on the US equities market, highlighting how the pandemic has left a lasting mark on Wall Street even as the rally in speculative shares fizzles. Trading volumes in options, tools that let investors bet on price movements of shares without holding them, have jumped this year, in an acceleration of a trend that began in the early days of the pandemic.
/jlne.ws/3rfJXC7
Former Which? boss tapped for interim chair at City watchdog; Richard Lloyd poised to lead Financial Conduct Authority at time when staff are bridling at strategic overhaul
Laura Noonan - FT
The UK government has tapped Richard Lloyd, the former Which? executive director, as the interim chair of the top financial watchdog, a person familiar with the matter said on Monday night. The news comes hours after an undisclosed number of the Financial Conduct Authority's staff completed their ballot on strike action in protest at proposed changes to pay and work practices under a divisive transformation plan spearheaded by Nikhil Rathi, the chief executive.
/jlne.ws/3GiPDiQ
Hackers Move $3.55B Worth of Bitcoin From 2016 Bitfinex Hack
Omkar Godbole - Coindesk
Large amounts of bitcoin stolen from the cryptocurrency exchange Bitfinex six years ago were moved by hackers early on Tuesday. "So far this morning, 94,643.29 bitcoins ($3.55 billion) have been moved in 23 transactions, from a wallet associated with a theft from Bitfinex in 2016, to a new address," blockchain analytics firm Elliptic said. These originate from a theft suffered by Bitfinex in 2016, the firm added.
/jlne.ws/349gEsb
Abrdn banks on £1.5bn 'no brainer' acquisition of Interactive Investor; FTSE 100 asset manager suffered after own megamerger but hopes another deal will restore fortunes
Adrienne Klasa and Joshua Oliver - FT
Etched into a glass window fronting the Edinburgh headquarters of the company formerly known as Standard Life Aberdeen is a single word: Abrdn. When the 197-year-old company decided to reinvent itself by ditching vowels in 2021, the move was met with widespread derision. But according to chief executive Stephen Bird, this was a provocative plan to modernise a company that has struggled to find its footing nearly five years after a lacklustre merger.
/jlne.ws/3He51hT
Nasdaq Recognized as a "Best Place to Work for LGBTQ+ Equality" for the Fourth Consecutive Year; Receives Perfect Score on Human Rights Campaign Foundation's Annual Assessment of LGBTQ+ Workplace Equality
Nasdaq
Nasdaq today announced its inclusion in the 2022 Corporate Equality Index (CEI), receiving a perfect score for the fourth consecutive year in recognition of its inclusive workplace. The CEI is the nation's leading benchmarking survey and report on corporate policies and practices related to LGBTQ+ workplace equality, administered by the Human Rights Campaign (HRC) Foundation.
/jlne.ws/3410CAJ
Euronext Securities achieves full CSDR compliance across its CSDs; Licence in Oslo marks final step to align with European's regulatory framework
Nasdaq
Euronext Securities has successfully obtained Central Securities Depository Regulation (CSDR) licences for its four CSDs. The last licence to operate under the CSDR was granted to Euronext Securities Oslo by the Norwegian FSA on 28 January 2022, and will take effect as of 1 March 2022.
/jlne.ws/3ojdFnN
India Finally Warms to Crypto With Tax, Digital Currency
Suvashree Ghosh and Vrishti Beniwal - Bloomberg
India took a step closer to adopting cryptocurrencies after years of wavering on its stance, as the country seeks to keep up with the global move toward the digital assets. Bitcoin gained. The Reserve Bank of India will launch its digital currency in the year starting April 1, Finance Minister Nirmala Sitharaman said in her budget speech on Tuesday. The nation also plans to tax the income from the transfer of virtual assets at 30%, she said, effectively removing uncertainties about the legal status of such transactions.
/jlne.ws/3L3bcI0
Indian government announces plans for digital rupee, 30% tax on virtual assets
Barbara Kollmeyer - MarketWatch
The Indian finance ministry announced Tuesday that the government will soon launch a digital rupee using blockchain technology with the country's central bank, a move that could put it far ahead of other nations. Finance Minister Nirmala Sitharaman announced the plans to introduce a digital currency in parliament on Tuesday, while presenting the country's Union Budget 2022. She also announced that income from transfer of virtual assets will be taxed at 30%.
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The Big Bucks and Bonuses at Banks Won't Last; Wall Street focuses on retention and one-offs to avoid driving up fixed costs.
Paul J. Davies - Bloomberg
Soaring pay and bonuses came as an unwelcome shock to shareholders during U.S. banks' 2021 earnings season. Most big European banks are also likely to complain about th
/jlne.ws/3ug1yM5
Meta-Backed Diem Association Confirms Asset Sale to Silvergate
Olga Kharif - Bloomberg
Silvergate has acquired intellectual property, payment network; The association blamed federal regulators for its need to sell
The cryptocurrency project that Facebook founder Mark Zuckerberg took a beating from Congress on is officially over. The Diem Association has sold its intellectual property and other assets related to its payment network to Silvergate Capital Corp. The effort, which was started by Facebook -- now Meta Platforms Inc. -- as a way to make payments and money transfers cheaper and faster, never got off the ground due to resistance from federal regulators, the association said in the statement. With the sale, the association will wind down, the statement said.
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Strugging IPOs Give FTX CEO Pause on Taking His Crypto Giant Public
Vildana Hajric and Katherine Greifeld - Bloomberg
Bankman-Fried says he doesn't feel compelled to list company; Current environment makes it seem less appealing, he adds
After watching the once-hot crypto IPO market wilt alongside high-growth stocks, FTX's Sam Bankman-Fried is having reservations about taking his own company public anytime soon. The chief executive officer says "never" is a possibility, considering the company -- a crypto trading platform -- is not lacking for liquidity after notching a $32 billion valuation in its latest funding round.
/jlne.ws/3GcSeuM
FTX valued at $32bn as blue-chip investors pile into crypto groups; Exchange led by billionaire Sam Bankman-Fried raises $400m in new funding round
Eva Szalay - FT
Cryptocurrency exchange FTX has been valued at $32bn in a new funding round announced on Monday, as blue-chip investors continue to pile into the hype-fuelled sector. Existing investors including Japan's SoftBank and Canada's Ontario Teachers' Pension Plan were among those that participated in a new $400m investment round for the Bermuda-based group, the third time FTX has gained new funds in six months.
/jlne.ws/3464XCx
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Hong Kong Posts Highest Daily Unlinked Covid Cases in Fifth Wave
Bei Hu - Bloomberg
Hong Kong reported the highest daily tally of unlinked infections in its fifth Covid outbreak on Tuesday as the government struggles to contain community transmission. The city had 129 newly confirmed cases in the 24-hour period ending on Tuesday at 9 a.m., health officials said. Of those, 102 were local cases and 22 have no currently known source, Chuang Shuk-kwan, head of the communicable disease branch of the Center for Health Protection said during a daily press conference. There were another 90 preliminary positive cases disclosed.
/jlne.ws/3ALN0VP
One Million Deaths: The Hole the Pandemic Made in U.S. Society; Covid-19 has been directly responsible for most of the fatalities, but the disease is also unraveling families and communities in subtler ways
Jon Kamp, Jennifer Levitz, Brianna Abbott, Paul Overberg - WSJ
Two years into the Covid-19 pandemic, America's death toll is closing in on one million. Federal authorities estimate that 987,456 more people have died since early 2020 than would have otherwise been expected, based on long-term trends. People killed by coronavirus infections account for the overwhelming majority of cases. Thousands more died from derivative causes, like disruptions in their healthcare and a spike in overdoses.
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | The Spanish stock market trades 32 billion euros in January, up 15.3%
BME-X
The number of Equity trades is up 16.3% from the previous month; New issues the Fixed Income markets in January increased by 128.1%; The Financial Derivatives market traded 1.5 million contracts
The Spanish stock exchange traded 32 billion euros in Equities in January, up 15.3% from the previous month and up 3.1% from the same month in 2021. The number of trades was 3.68 million, 16.3% higher than in December and 15.9% lower than in January last year.
/jlne.ws/3gvTsXP
Looking for a capital efficient alternative to replace OTC swaps? Try Eurex's 40 new Equity Total Return Futures
Eurex
40 new Equity Total Return Futures (ETRFs) have been launched on 31 January 2022, expanding the Eurex offering in this segment to around 290 companies. The new instruments are a capital efficient alternative to popular OTC equity swaps and offer the advantages of a listed product, thus further facilitating equity financing.
/jlne.ws/3ANLvX7
EURO STOXX® 50 Index Futures: Change of minimum price gradation (tick) for outright futures contracts
Eurex
The Management Board of Eurex Deutschland decided to increase the minimum price change (tick) in outright contracts in EURO STOXX® 50 Index Futures (FESX) with effect from 21 March 2022.
/jlne.ws/3gffe1D
Eurex Exchange's T7 Disaster Recovery Test on 2 April 2022
Eurex
On Saturday, 2 April 2022, Eurex Exchange will offer a test scenario according to its T7 disaster recovery concept. This particular DR scenario will simulate a partial outage of the primary data centre facility (the co-location facility will remain up and running).
/jlne.ws/3ASG2OW
Deutsche Börse Photography Foundation shows the exhibition "CONTINENT - In Search of Europe" by the agency OSTKREUZ
Deutsche Börse Group
The exhibition can be seen from February 11 to June 12, 2022 in The Cube, Frankfurt/Eschborn; The exhibition can be visited as part of guided tours and on the "Open Saturdays" on February 26, April 2 and June 11; A press tour will take place on February 9, 2022 at 11 a.m.
The new exhibition "CONTINENT - In Search of Europe" in the headquarters of Deutsche Börse in Eschborn shows photographs of the 22 members of the Berlin-based agency OSTKREUZ, who deal with the European living space and its people. The groups of works developed specifically for the exhibition over the past eight years explore the question of how Europe and how people live together could be shaped and developed in the future.
/jlne.ws/3IU5oP7
Cash market sales statistics for January
Deutsche Börse Group
A trading volume of EUR189.5 billion was achieved on Deutsche Börse's cash markets in January (previous year: EUR181.9 billion). Of this, EUR151.1 billion was attributable to Xetra (previous year: EUR137.9 billion), meaning that the average daily Xetra turnover was EUR7.2 billion (previous year: EUR6.9 billion). EUR4.6 billion was traded on the Frankfurt Stock Exchange (previous year: EUR6.7 billion) and EUR33.7 billion (previous year: EUR37.3 billion) on the Tradegate Exchange.
/jlne.ws/3rivSUt
NYSE Arca - Equities Fee Changes Effective February 1, 2022
NYSE
Subject to effectiveness of a filing with the SEC, NYSE Arca intends to make the following change to the NYSE Arca Equities Fee Schedule for shares priced at or above $1.00, beginning February 1, 2022:
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Trading Overview in January 2022; Japan Exchange Group released Trading Overview in January 2022.
JPX
Cash Equity Market: In January 2022, the daily average trading value for the TSE 1st Section (domestic common stocks) was JPY 3.3810 trillion; In January 2022, the daily average trading value of ETF market was JPY 333.5 billion.
Derivatives Market: In January 2022, total derivatives trading volume was 34,081,961 contracts; In January 2022, total derivatives trading value was JPY 248 trillion.
/jlne.ws/3s4TBqw
-- Performance Bond Requirements: Agriculture, Energy, FX, Interest Rate, and Metal Margins - Effective February 01, 2022 - CME
-- https://jlne.ws/32N1jwC|Performance Bond Requirements: Interest Rate Margins - Effective February 01, 2022 - CME
-- Declaration of Regularity Renewal for Slaughter Plants for Live Cattle - CME
-- Declaration of Regularity Renewal for Livestock Yards for Live Cattle - CME
-- Product Modification Summary: Administrative Amendments to the Iron Ore 62% Fe, CFR China (TSI) Futures and Iron Ore 62% Fe, CFR China (TSI) Average Price Option Contracts - Effective March 07, 2022 - CME
-- Revision: New Product: Initial Listing of Six (6) Container Freight (FBX) (Baltic) Futures Contracts (Revision of Globex Codes) - CME
-- Notice of Summary Action: MEMBER FIRM: PETER KOSANOVICH (MGLA); RULE VIOLATION: 514. TRADING INFRACTIONS. A. The following shall constitute trading infractions: 7. ("use of undue force while on, entering or leaving the trading floor"); PENALTY: The Panel imposed a fine of $1000. - CME
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Thai central bank to let banks invest more in fintech
Reuters
Thailand's central bank plans to allow banks to invest more than a current limit of 3% of their capital funds in fintech, except in digital assets, an assistant governor said on Tuesday.
The Bank of Thailand (BOT) also expects to issue rules on virtual banks in the first half of the year, Roong Mallikamas told a news conference.
/jlne.ws/3Gihlwj
The 10 big fintech funding rounds in January you need to note
Eric Johansson - Private Banker International
January was a strange month for fintech deals. As with other tech stocks, the financial sector has taken a tumble over the past month. Companies like Coinbase, PayPal and Mastercard have all seen the price of their stock fall.
A combination of rising inflation and anticipation of US Federal Reserve reaction is behind the investor panic. Or, to put it more accurately, rising inflation has forced the Federal Reserve to reduce its bond-buying programme, which it has used to bolster the economy. While investors had anticipated the Fed would change its policy, few expected it to move up the time-table the way it has.
/jlne.ws/3gcBsRV
Liquidnet connects buy-side and banks for new issues as part of continued primary offering expansion; The new feature allows investors to communicate with banks via their order and execution management systems (OEMS) as part of the bookbuild process.
Annabel Smith - The Trade
TP ICAP's institutional trading network, Liquidnet, has launched a new feature directly connecting the buy-side and banks as part of its continued expansion of its primary offering. The new feature allows investors to use their OEMS to connect to communicate with syndicate banks as part of the book build process before a bond is priced or allocated.
/jlne.ws/3retxtI
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| Cybersecurity | | Top stories for cybersecurity | Apple's Cybersecurity Concerns Over Antitrust Bills Are Worth Taking Seriously
Chuck Brooks - Barron's
Congress recently introduced bipartisan antitrust legislation that has raised concern in the national security and cybersecurity communities. Large tech companies are claiming that the legislation may undermine user cybersecurity and privacy if they can download applications straight from the internet onto devices.
/jlne.ws/3gdDtNF
Cybersecurity Trends For 2022: Why Staying Ahead Of The Threat Has Never Been So Critical
Forbes
2021 was a devastating year for cybersecurity. As business accelerated digital adoption and people played out their lives online, threat actors were ready to capitalize on the transitional moment, savagely targeting everything from critical health infrastructure to small and medium-sized businesses.
By Q4 of 2021, the number of reported data breaches had already surpassed 2020 totals, which were historic in their own right. Collectively, 281.5 million people have been impacted by a data breach in 2021, while cybercrime costs companies $1.79 million per minute, demonstrating the across-the-board impact of today's cybersecurity landscape.
/jlne.ws/3ggLbXi
SBA Unveils $3M Cybersecurity Pilot Program, as Fraudsters Increasingly Target Smaller Shops
Melissa Angell - Inc.com
The Small Business Administration is launching a new pilot program that could help you thwart a future cyber attack, but only if you're located in one of three select as-yet unknown states.
The agency announced on January 21 that it plans to dole out $3 million in grants for state governments to help small businesses with their cybersecurity needs. The awards will range between $800,000 and $1 million each. Though it remains to be seen how and when exactly these funds will be dispersed, based on the known details of the pilot program, just three states are likely to receive any funding--at least at the outset.
/jlne.ws/3gctAQz
4 ways to protect yourself from ransomware attacks
Erica Gerald Mason - Yahoo
Ransomware attacks are on the rise. Most recently, there was a ransomware attack on the Colonial Pipeline, which left the East coast with a fuel shortage — and which forced the company to pay hackers $5 million. But what exactly is ransomware? In short, ransomware is a program that appears in the form of a virus or an executable file that overtakes a computer or network, locks out its users, and then demands payment for its return.
/jlne.ws/3gct98H
FTC Warns Social Media Users About Targeted Advertising as Scams Abound; Antifraud specialists and marketing executives say opting out will make minimal difference in the fight against con artists online
Katie Deighton - WSJ
Scams that originate on social media, from fake Instagram Shops to false online romances that lead to extortion, ballooned between 2020 and 2021, according to a new report from the Federal Trade Commission. Targeted advertising looks like it has something to do with it, the agency said. Bad actors can "use the tools available to advertisers on social media platforms to systematically target people with bogus ads based on personal details such as their age, interests, or past purchases," the FTC said in its report.
/jlne.ws/3rrBKLn
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| Cryptocurrencies | | Top stories for cryptocurrencies | Jamaica digital currency due for national roll-out in coming months - central bank
Kate Chappell - Reuters
Jamaica will roll out its digital currency across the country in the first quarter of this year as part of an effort to lower transaction costs and provide financial services to citizens who do not use banks, a central bank official told Reuters.
/jlne.ws/3L0KZJW
A DAO has amassed a trove of Bored Ape Yacht Club NFTs worth millions— its members may vote to sell them to close estimated 50% valuation gap with their token
Matthew Fox - Business Insider
A crypto DAO has amassed a collection of 81 Bored Ape Yacht Club NFTs but could be forced to sell them all due to a sizable valuation gap that has been plaguing the tokens issued to its members. ApeDAO offers its token holders diversified exposure to a collection of popular NFTs like BAYC, CryptoPunks, Mutant Apes, and Cool Cats, among others. But since its launch in October 2021, the DAO's token has been trading at a valuation well below the implied value of its NFT collection.
/jlne.ws/3ITCcb6
Barclays Junk Bond Trader Leaves Bank to Seek Fortune With NFTs
Abhinav Ramnarayan and Laura Benitez - Bloomberg
High-yield bond trader Mike Anderson has left Barclays Plc to pursue a career in crypto investments, according to people familiar with the matter. Anderson, who worked on the bank's high-yield credit trading desk in London quit in January, according to the people, who weren't authorized to speak publicly on the matter.
/jlne.ws/3s4HXM5
Russia Values Local Crypto Market at $200 Billion as Rules Near
Evgenia Pismennaya - Bloomberg
Russian share is 12% of world total, government estimate shows; Bank of Russia, goverment at odds on how to regulate market
Russians own more than 16.5 trillion rubles ($214 billion) worth of cryptocurrencies, according to an estimate the Kremlin and government officials are using to craft a plan to regulate the industry.
/jlne.ws/3uec8Dd
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| Politics | | An overview of politics as it relates to the financial markets | Coinbase-Backed Crypto Lobby Group Gears Up for Regulation With New Leader
Allyson Versprille - Bloomberg
Former WEF exec becomes CEO of Crypto Council for Innovation; Founding members include Fidelity, Coinbase, Paradigm, Block
When companies including Fidelity Investments' digital asset arm, Coinbase and Block (then known as Square Inc.) first formed their trade group last April, the largest crypto token was hovering around $60,000. Sheila Warren, previously an executive at the World Economic Forum, will be joining the group known as the Crypto Council for Innovation with prices across the asset class trending markedly lower and significant regulatory headwinds on the horizon.
/jlne.ws/34bHCiJ
El Salvador's bitcoin-loving president Nayib Bukele says scarcity means 'gigantic' price increase for the crypto is just a matter of time
Carla Mozée - Business Insider
El Salvador's president on Monday projected a "gigantic price increase" for bitcoin.
The jump would stem from the world's 50 million millionaires seeking to own at least one bitcoin, he said on Twitter.
/jlne.ws/32Pl8Uc
Trudeau Tests Positive for Covid, Says He'll Work Remotely
Brian Platt - Bloomberg
News comes as legislature resumes its work after winter break; Truckers denouncing vaccine mandates continue their blockade
Canadian Prime Minister Justin Trudeau said he has tested positive for Covid-19, four days after going into isolation because one of his children contracted the virus. "I'm feeling fine -- and I'll continue to work remotely this week while following public health guidelines," Trudeau said in a tweet Monday morning. "Everyone, please get vaccinated and get boosted."
/jlne.ws/3ocBUEj
UK faces calls to tackle 'dirty money' as it targets Kremlin-linked oligarchs; Stronger sanctions to come into force next week as part of co-ordinated response with allies to deter Russia over Ukraine
Laura Hughes, Kate Beioley and Jim Pickard - FT
UK foreign secretary Liz Truss on Monday faced calls to do more to tackle "dirty money" flooding into the UK as she announced plans to toughen the sanctions regime against Russian oligarchs with links to the Kremlin.
/jlne.ws/3s0Jwe4
Fed Nominee Has Studied How Policies Affect Economic Opportunities; Lisa Cook is likely to consider the impact of rate increases across demographic segments and different parts of economy, associates say
Amara Omeokwe - WSJ
Economist Lisa Cook has often focused her research on policies that promote broad economic opportunity, particularly for racial minorities and women, an approach she could soon bring to the central bank and its policy making.
/jlne.ws/3GhFAe8
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| Regulation & Enforcement | | For more regulatory, visit MarketsReformWiki, our website focused on current market reform efforts. | CFTC Staff Issues No-Action Letter Regarding Compliance Date for 2020 Amendments to Swap Data Reporting Rules
CFTC
The Commodity Futures Trading Commission's Division of Data (DOD) today issued a no-action letter regarding the compliance dates for the November 25, 2020 amendments to the swap data reporting rules. The amendments became effective on January 25, 2021 with a May 25, 2022 compliance date, except for certain block and cap amendments to CFTC Regulations 43.4(h) and 43.6, which have a May 25, 2023 compliance date.
/jlne.ws/3KXitJe
Statement of Commissioner Dawn D. Stump Regarding Staff No-Action Letter on Compliance Date for 2020 Amendments to Swap Data Reporting Rules
CFTC
The Commission's Division of Data has today issued a no-action letter providing approximately six additional months for market participants to work through challenges associated with complying with the amendments to swap data reporting regulations recently adopted by the Commission.[1] I believe the Staff's action is appropriate. Market participants represent that they need this additional time to overcome certain operational and technological issues and to build and test changes to their swap data reporting systems.
/jlne.ws/3KSyr7z
CFTC Charges South Florida Resident and His Firm for Operating a $9.8 Million Commodity Futures and Options Fraud
CFTC
The Commodity Futures Trading Commission today announced that the U.S. District Court for the Southern District of Florida, West Palm Beach Division, on January 20, 2022, entered a restraining order to preserve records and freeze assets controlled by defendants Rajiv Patel, a/k/a Ravi Patel, a/k/a/ Raj Patel (Patel) and Bluprint LLC (Bluprint), both of Wellington, Florida.
/jlne.ws/3KV5jfQ
Time to Revisit FRTB Treatment of Funds
ISDA
Setting risk-based capital requirements for banks is a fine balancing act. The level of capital must adequately cover the risk posed by a particular asset without being excessively conservative, which could threaten the ability of banks to participate in that market. The methodologies used for calculating capital must also be sophisticated enough to accurately measure risk, but not so operationally complex and impractical that banks can't implement them. In some cases, this balance isn't quite right, and further work is needed to fine-tune the rules. The treatment of equity investments in funds (EIIF) under the revised market risk capital framework is one such area...
/jlne.ws/32OYyeq
CFTC offers industry relief from swap data reporting amendments as compliance date looms; The regulator has issued no-action letters on amendments that became effective in January last year and had an expected compliance date of 25 May this year.
Annabel Smith - The Trade
The US' Commodity Futures Trading Commission (CFTC) is offering relief to participants regarding amendments to swap data reporting rules ahead of the upcoming compliance deadline. The regulator's Division of Data (DOD) has issued no-action letters confirming that it will not take enforcement action against entities that fail to comply with the amendments before December later this year and December 2023 for block and cap amendments, provided that certain regulations that came into force in January last year are complied with.
/jlne.ws/3sb1quL
SEC Publishes Annual Staff Report on Nationally Recognized Statistical Rating Organizations
SEC
The Securities and Exchange Commission today issued its annual Staff Report on Nationally Recognized Statistical Rating Organizations (NRSROs), providing a summary of the SEC staff's examinations of NRSROs and discussing the state of competition, transparency, and conflicts of interest among NRSROs.
/jlne.ws/3s2F0vA
ESMA publishes Final Reports on CCP recovery regime
ESMA
The European Securities and Markets Authority (ESMA), the EU's securities markets regulator, today published its Final Reports on the central counterparties (CCPs) recovery regime, as mandated under the CCP Recovery and Resolution Regulation (CCPRRR).
/jlne.ws/32NDbtN
ESMA starts supervision of benchmarks and assumes chair of EURIBOR College
ESMA
The European Securities and Markets Authority (ESMA) is since 1 January the supervisor of European Union (EU) critical benchmarks administrators and EU recognised third-country administrators under the Benchmarks Regulation.
/jlne.ws/34jOY3t
ESAs publish thematic repository on financial education and digitalisation initiatives
ESMA
The three European Supervisory Authorities (EBA, ESMA and EIOPA) published today a Joint ESAs thematic repository on financial education and digitalisation initiatives of National Competent Authorities (NCAs), with a specific focus on cybersecurity, scams and fraud. The repository contains 127 national initiatives that provide consumers with helpful information on how to improve their financial literacy.
/jlne.ws/3rdl7mb
FINRA Data Feeds
FINRA
From the start of day transmissions, on January 31, 2022, FINRA experienced an issue with its data feeds (ATDS, BTDS, BTDS-144A, SPDS, SPDS-144A and TDDS) resulting in transactions not being disseminated. The problem was corrected at approximately 8:37 a.m.; at that time feeds began publishing normally.
/jlne.ws/34pLUmq
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Exxon to Move HQ to Houston, Merge Refining and Chemicals
Kevin Crowley and Ari Natter - Bloomberg
Exxon Mobil Corp. will relocate its corporate headquarters to the Houston area from suburban Dallas and combine its chemical and refining divisions in a major shake-up aimed at reducing costs.
/jlne.ws/3IS4RNv
Ex-Head of Family Office for $31 Billion Fortune Builds Firm
Benjamin Stupples - Bloomberg
Helmut Jeggle has invested in at least 10 companies since 2020; He spent about 14 years running the Struengmann family office
Helmut Jeggle spent more than a decade managing the fortune of Thomas and Andreas Struengmann, helping to oversee their holdings in health care, logistics and manufacturing.
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | A Kernel of Good News About Global Carbon Emissions; The post-lockdown economic recovery proved to be less carbon intensive than the post-financial crisis recovery
Akshat Rathi - Bloomberg
Global carbon dioxide emissions rose significantly last year, but they didn't rise quite as much as some experts expected. Instead of increasing by 4.9% over 2020 levels, which the Global Carbon Project forecast in November, new estimates from the group suggest the increase was about 4.3%.
/jlne.ws/3L3fK12
Ask the awkward questions about green investing; How can we invest to make the world a better place?
Simon Edelsten - FT
Successful investing requires the ability to spot and avoid fads that can create dangerous bubbles. Global equity markets tend to rise at a higher rate than inflation over time, but bursting bubbles cause sudden losses that may seriously undermine your long-term investment record. So patiently holding high-quality companies for the long haul and avoiding bubbles is a winning strategy.
/jlne.ws/3uhWpTS
Majority of planned ETFs in Europe to have ESG tilt, PwC says; Survey of 60 global providers reveals companies are responding to regulatory pressure as well as investor demand
Anna Devine - FT
The majority of exchange traded fund launches in Europe over the next year will use an environmental, social or governance tilt for their construction, according to a new report. Of the some 60 ETF providers that responded to a global survey carried out by PwC, 80 per cent in Europe say more than half of their products will invest with an ESG angle.
/jlne.ws/3AQBJmU
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Viking Hedge Fund Blames 2021 Losses on 'Underestimating' Covid
Hema Parmar - Bloomberg
After posting its worst ever performance last year, Viking Global Investors is trying to explain its losses -- and it's pinning the blame on the Covid-19 pandemic. The firm's hedge fund, which invested in 2021 laggards such as Peloton Interactive Inc., Coupa Software Inc. and Adaptive Biotechnologies Corp., fell 4.5% in the year because it "underestimated the ongoing impact of Covid," founder Andreas Halvorsen wrote in a letter to investors dated Jan. 18.
/jlne.ws/3ggZYl4
UBS Is Worth Almost Three Times as Much as Credit Suisse
Jan-Patrick Barnert - Bloomberg
The positive reaction to UBS Group AG's quarterly results and upbeat long-term outlook helped extend its market-value lead over Swiss rival Credit Suisse Group AG to levels not seen since before the global financial crisis.
/jlne.ws/340QZC5
Hedge-Fund Trade That Upended the Treasury Market Is Set to Return
Edward Bolingbroke - Bloomberg
A money-making strategy formerly popular among hedge funds stands to make a comeback as the Federal Reserve plots to shrink its footprint in the U.S. Treasury market. The strategy involves taking leveraged positions in Treasury notes and bonds in order to exploit price differences with the corresponding futures contracts. These so-called basis trades backfired during the March 2020 liquidity crisis, when the normal relationships between cash and futures broke down.
/jlne.ws/3gcUDLh
Deutsche Bank Hires Credit Suisse's Trio to Woo Saudi Ultra-Rich
Nicolas Parasie - Bloomberg
Deutsche Bank AG has poached three wealth managers from Credit Suisse Group AG in pursuit of ultra-rich clients in Saudi Arabia as the German lender strengthens its global private banking franchise.
/jlne.ws/3HkTPjC
Ex-BNP banker wins £2mn payout for gender discrimination; Stacey Macken receives one of the largest awards ever made by a UK tribunal
Eva Szalay and Jane Croft - FT
A former BNP Paribas employee has won a £2mn payout after judges decided the French bank unfairly discriminated against her because of her gender. In one of the largest awards made by a UK employment tribunal, Stacey Macken is to receive £2mn in compensation after BNP paid her significantly less than male colleagues over a four-year tenure at the bank's London office. The award comes more than two years after Macken won her case for gender discrimination at a UK tribunal.
/jlne.ws/3He3Uid
UBS doubles buybacks as profits reach 15-year high; Switzerland's biggest bank has benefited from last year's resurgence in global markets
Sam Jones and Stephen Morris - FT
UBS has announced its highest annual profits since before the financial crisis and set out plans to almost double its share buyback programme after a strong run for global markets. Full-year results published on Tuesday underlined how Switzerland's biggest bank, which has focused on expanding its wealth management business, benefited from global stock market growth last year.
/jlne.ws/3ug2QGV
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Thai central bank to let banks invest more in fintech, eyes virtual banks
Reuters
Thailand's central bank plans to allow banks to invest more than a current limit of 3% of their capital funds in fintech, except in digital assets, an assistant governor said on Tuesday. The Bank of Thailand (BOT) also expects to issue rules on virtual banks in the first half of the year, Roong Mallikamas told a news conference.
/jlne.ws/3L0qOvP
After 99.99% Plunge, Venezuela's Bolivar Has Finally Stabilized
Nicolle Yapur and Fabiola Zerpa - Bloomberg
Currency has traded around 4.5 to USD for past four months; Central bank sold about $1.5 billion to fx market in 2021
The Venezuelan bolivar, after years of excruciating, relentless declines that have left it almost worthless and sunk millions into deep poverty, appears to have finally bottomed out. The currency has traded at a rate of around 4.5 per dollar for the past four months, a newfound stability that's come without much need for propping up by policy makers.
/jlne.ws/3ubzOIy
Masthaven to Quit U.K. Banking Market Due to Lack of Investment
William Shaw - Bloomberg
Masthaven Bank Ltd. is withdrawing from the U.K. banking market over the next two years due to a shortfall in long-term capital needed to grow the business.
/jlne.ws/3HoQGiH
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