| July 12, 2021 | "Irreverent, but never irrelevant" | | | | John Lothian
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John Lothian News | |
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$50,456/$300,000 (16.8%)
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Hits & Takes
John Lothian & JLN Staff
The CME Group has gone live with a next generation EBS Direct Platform. CME says "Customers trading on EBS Direct will benefit from enhanced processing times - below 50 microseconds - and faster market data on the new platform." -- CME Group
The CME Group also reported that international average daily volume reached 5.1 million contracts in the second quarter of 2021, up 6% from the second quarter of 2020. The CME reported that "this volume was driven by global growth in Agricultural and Interest Rate products, up 30% and 42% respectively. Agricultural products also established record quarterly volumes in Europe, Middle East and Africa (EMEA), as well as Asia Pacific and Latin America." -- CME Group
The CME Group issued a number of notices of disciplinary actions. None of the traders who were invoiced issued a written response to the charges, which involved "cancel(ing) the orders before execution or to modify the orders to avoid execution," AKA spoofing. The fines were between $30,000 and $55,000. All the notices are listed in Exchange News. There is a pattern in the series of traders' names that I am told I can't mention by my editors.
The ABA Business Law Section Derivatives and Futures Law Committee Meeting is hosting a half-day virtual mid-year program. The program is Wednesday, July 21, from 10 a.m. to 1:30 p.m. ET. Highlights include: Keynote address presented by SEC Chair Gary Gensler; CLE panels on ESG and regulatory developments featuring CFTC Commissioners and leading industry professionals; Fireside Chat with regulators on Crypto and Fintech. -- ABA
On Friday the government of Japan announced yesterday that it will declare a state of emergency for Tokyo, effective from July 12, over the spread of Covid-19. However, trading for all of the markets on the Tokyo Stock Exchange, Osaka Exchange and Tokyo Commodity Exchange will continue as usual. - JPX
Joseph Rauh has joined StoneX Group Inc. as a compliance officer. He previously worked at NFA and was an intern with the CFTC's Chicago office back in 2015.
The DRW venture capital portfolio company TradingView has been named the top finance website in the world according to Similarweb statistics. Trading View's network of over 30 million investors and traders use tools and data to find the best market opportunities. --SimilarWeb.com
CTC is hiring experienced quantitative traders with a strong background in options and/or market making. -- CTC
Bloomberg reports that Pokemon cards are hot again. -- Bloomberg
For the record, I am all for sending billionaires TO space. At least some of them. ~JJL
There were no new donations to the JLN MarketsWiki Education GoFundMe campaign over the weekend.
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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The Cboe Options Institute is hosting a live 70-minute webinar on Wednesday, July 14, at noon ET, on "U.S. Tax Considerations for Listed Options," including a discussion of the outlook for possible legislative and regulatory initiatives that may impact the taxation of options. Cboe's Matt Moran will speak with Matthew Stevens, David Kirk, Joe DeSipio, Roy Haya, and continuing education credit is available. You can go here to register.~SR
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The Spread - July 9, 2021
JohnLothianNews.com
Chicago, a data destination; the SEC, Robinhood and payment for order flow; John Lothian weighs in with his take; Retail trading continues to percolate; and Cboe's Kevin Davitt explains the differences between equity and index options in the "Term of the Week."
Watch the video »
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What The Rubber 'Apocalypse' Means For The U.S. Economy
CNBC (Video via YouTube)
The global economy now faces a rubber shortage because of multiple supply chain disruptions. "We could be on the cusp of a rubber apocalypse," Ohio State University professor Katrina Cornish told CNBC. Rubber producers are working against all odds: climate change, disease and the fight for shipping containers. The global rubber market was valued at nearly $40 billion in 2020, but one analysis predicts the natural rubber market could be worth nearly $68.5 billion by 2026.
/bit.ly/3e2KMHd
*****I think there is inflation in the use of the phrase "rubber apocalypse."~JJL
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'Unrecognizable.' Lake Mead, a lifeline for water in Los Angeles and the West, tips toward crisis
Jaweed Kaleem, Thomas Curwen - Los Angeles Times
Eric Richins looked out from his pontoon boat to the shallows on the lake's western edge. He squinted and paused as if he had come upon a foreign shore. For the first time in a career navigating the waters of the American West, he didn't know where he was. "I could have sworn I was here just six weeks ago catching smallmouth and bigmouth bass," said the 35-year-old fisherman who runs tours on this 247-square-mile basin where the Colorado River meets the Hoover Dam to form the nation's largest reservoir.
/yhoo.it/3k6Bpu1
****** It is a long way from the diving board to the water these days.~JJL
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The Unassuming Nerve Center of the NYSE Trading Floor
Farrell Kramer - NYSE via LinkedIn
There are no signs announcing its location. No painted lines on the parquet floor to guide visitors. Yet, every trader at the New York Stock Exchange knows the way to this small but critical area of the famed 16,000 square-foot trading floor. It is called, quite simply, the Ramp.
/bit.ly/3yK8T5M
******The Ramp is a cool place to be.~JJL
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Business Trips Are Coming Back Faster Than Expected in the U.S.
Augusta Victoria Saraiva and Alexandre Tanzi - Bloomberg
In-person conferences are returning in Las Vegas, Boston; Corporate travel still has a long way to go before recovery
In-person conferences are back sooner than anticipated in the U.S., a sliver of good news for industries like airlines and hotels that are relying on corporate travel for a full recovery.
/bloom.bg/2UJh0R1
*****My dogs take several business trips a day. Do they count?~JJL
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Are We in the Metaverse Yet? Crypto people say they're building it. Gamers might already be living in it. The art world is cashing in on it. Web veterans are trying to save it. But what is it?
John Herrman and Kellen Browning - NY Times
The biggest ideas in tech often lurch into the lexicon before they are truly coherent. Jargon appears out of nowhere, underexplained and overused: the internet of things, the sharing economy, the cloud. In some rare cases, the terminology sticks. A lot of people talk a lot about a lot of loosely related things, and then those things merge into a single semi-comprehensible thing. Then we live our lives within that thing forever. Remember hearing about "the internet"? Get ready for "the metaverse."
/nyti.ms/36shL3P
****** What comes after the metaverse?~JJL
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Friday's Top Three
Our most clicked story Friday, by a wide margin, was John Lothian's Names For Consideration as Chair of The CFTC, from JLN. Second was Biden executive order to target noncompete agreements -White House, from Reuters. Third was Can Blockchain Run a Financial Market? This Company Thinks So, about Prometheum, "the world's first SEC and FINRA-regulated, full-service financial market and trading platform built on blockchain technology," from Benzinga via Yahoo Finance.
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MarketsWiki Stats
26,455 pages; 234,363 edits
MarketsWiki Statistics
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| Lead Stories | Wall Street's Math Whizzes Are Racing to Wire Up the Bond Market
Justina Lee - Bloomberg
Long-awaited debt revolution may have been ushered in by Covid; Systematic hedge funds double credit long book since 2018
For years, David Horowitz at Agilon Capital was a rare breed in the bond market: a quant in a notoriously old-school business where prices were a call rather than a click away. Sixteen months of the pandemic is changing all that.
/bloom.bg/3wu1qpK
Eurex and Korea Exchange further expand their link with Korean Won contract
Eurex
Daily USD/KRW Futures available from 26 July; Eurex is the only after-hours trading venue for USD/KRW Futures; Contracts are CFTC approved and tradable in the U.S.
The global derivatives exchange Eurex and the Korea Exchange (KRX) will strengthen the product range tradable via their joint Eurex/KRX link with U.S. Dollar/Korean Won Futures. The contracts are scheduled to launch on 26 July. The new product listing emphasizes once again the partner exchanges' decade long commitment to connecting markets globally and around the clock.
/bit.ly/3ASe59m
Former NYSE president to take crypto exchange Bullish public via SPAC
Frank Chaparro - The Block
Bullish, the cryptocurrency exchange backed by Block.one, revealed Friday its plans to go public via a SPAC deal, making it the latest company in the digital asset market to announce its intentions to list its shares on an equity exchange. As part of the deal, Bullish will merge with Far Peak Acquisition Corp (NYSE: FPAC), a SPAC company that has been led by former New York Stock Exchange president Tom Farley. Farley will take the reins as Bullish's new chief executive. The deal values the firm at a whopping $9 billion, according to a press announcement.
/bit.ly/3r2eSQu
Crypto Exchanges Have a Plan to Beat Binance: Play by the Rules; Coinbase, Kraken, and Gemini are embracing regulation. "We're playing the long game," says Cameron Winklevoss.
Katherine Chiglinsky, Olga Kharif, Matthew Leising - Bloomberg
In the wild world of cryptocurrency exchanges, one strategy never seemed to pay off: embracing regulation. Take Gemini, started by twins Cameron and Tyler Winklevoss. While it was plastering posters in New York subways a few years ago, declaring there was "Finally, a regulated place to buy, sell and store crypto," an exchange called Binance—with no clear headquarters and a mysterious structure—quietly took the top spot among the world's cryptocurrency exchanges.
/bloom.bg/36tVBhk
EBS launches next-generation direct platform; The EBS Direct platform offers enhanced price discovery, provides greater certainty of execution and improves fill ratios for market participants.
Wesley Bray - The Trade
CME Group's foreign exchange platform EBS has launched a next-generation EBS Direct platform to improve latency and execution. Users of the new EBS Direct platform will benefit from enhanced processing times below 50 microseconds and faster market data.
/bit.ly/3APbUDH
DTCC Derivatives Repository fined EUR408,000 for EMIR data breaches; The European Securities and Markets Authority fined DTCC for seven data infringements relating to European Market Infrastructure Regulation (EMIR).
Annabel Smith - The Trade
ESMA has fined DTCC Derivatives Repository (DDRL) EUR408,000 for seven infringements of the European Market Infrastructure Regulation (EMIR) relating to data confidentiality, integrity, and access.
/bit.ly/3hU6zCg
Why China and U.S. Are Clashing Over Stock Listings
Richard Frost and Sofia Horta e Costa - Bloomberg
Chinese companies seeking capital have long headed to the U.S. stock market to tap its deep-pocketed investors, raising more than $100 billion through first-time share sales over the past two decades. This money flow was immensely profitable for all involved: The founders, the bankers, early investors and new shareholders. Yet all this now looks set to change. China has pledged to write new rules for companies going public outside the mainland and to step up oversight of those already trading offshore. It's unclear whether Didi Global Inc.'s contentious initial public offering in June was the catalyst; the U.S. has been taking steps to force some Chinese firms to open their books or face delisting. Either way it's a major shakeup for Chinese companies -- which account for about 4% of America's $50 trillion equity market -- as well as their private equity backers and Wall Street.
/bloom.bg/3wFRMRa
G20 ministers endorse carbon pricing to help tackle climate change; ECB president Christine Lagarde calls for mechanism that reflects 'true cost of carbon'
Leslie Hook and Kristen Talman - FT
G20 finance ministers have collectively endorsed carbon pricing for the first time, describing the once contentious idea as one of "a wide set of tools" to tackle climate change.
/on.ft.com/3r5XgDe
The Accountants Say Bitcoin Can't Play With the Unicorns; A company holding such digital assets can — for the most part — only write down their value. It's unfair. Just look at those risky startup investments.
Shuli Ren - Bloomberg
Bitcoin lovers, cry foul! Accounting firms are restricting corporations from holding the cryptocurrency as assets even as they give free rein to venture capital firms — such as SoftBank Group Corp. — to invest in equally risky and volatile unicorns. MicroStrategy Inc. and Elon Musk's Tesla Inc. own Bitcoin but they are exceptions. One survey found that only 5% of finance executives plan to invest in Bitcoin this year.
/bloom.bg/3r8r8ir
Binance Froze When Bitcoin Crashed. Now Users Want Their Money Back; The world's largest crypto exchange has no headquarters, making it difficult for disgruntled traders to complain about the May crash
Patricia Kowsmann and Caitlin Ostroff - WSJ
Anand Singhal built up $50,000 in savings from the time he was 13 doing freelance coding from his bedroom in New Delhi. It was meant to pay for a dream—a master's degree in computer science in the U.S. The money disappeared in seven minutes on May 19.
/on.wsj.com/3hzm4k5
China Tightens Rules on Foreign IPOs in New Blow to Tech Firms
Bloomberg News
Firms with data on over 1 million users will be affected; The move could drive companies to list in Hong Kong: analyst
China proposed new rules that would require nearly all companies seeking to list in foreign countries to undergo a cybersecurity review, a move that would significantly tighten oversight over its internet giants.
/bloom.bg/3wB3MmT
China to impose security checks on overseas listings; Companies with 1m users will need to pass review to ensure sensitive data cannot be obtained by foreign regulators
Tom Mitchell and Ryan McMorrow and Yuan Yang - FT
Chinese companies that have the data of more than 1m users will need to pass a security review before issuing shares on overseas stock exchanges, the country's internet regulator said on Saturday.
/on.ft.com/3wFTamQ
China Plans Security Checks for Tech Companies Listing Overseas; The proposed rules would close a gap that let the ride-hailing company Didi go public on Wall Street before assuring Beijing that its data was safe.
Raymond Zhong - NY Times
China moved on Saturday toward requiring domestic tech companies to submit to a cybersecurity checkup before they can go public on overseas stock exchanges, a step that would close the regulatory gap that allowed the ride-hailing giant Didi to list shares on Wall Street last week without getting a clean bill of digital health from Beijing.
/nyti.ms/2T4Jd4p
Insider trading charges filed over Long Island Iced Tea's blockchain 'pivot'
Matt Egan - CNN Business
As the bitcoin craze took off in 2017, a Long Island iced tea company sent its share price spiking as much as 380% merely by announcing a "pivot" to blockchain technology. Long Island Iced Tea Corp. even changed its name to Long Blockchain Corp.
/cnn.it/3e6Vf4y
Council Meetings
U.S. Department of The Treasury
On Friday, July 16, Secretary Janet L. Yellen will preside over an executive meeting of the Financial Stability Oversight Council (Council) by videoconference. The preliminary agenda includes Federal Reserve stress tests, housing markets, and the proposed Council report to be issued under the Executive Order on Climate-Related Financial Risk.*
/bit.ly/3hxESjG
Spread of Delta variant casts shadow over Europe's economic rebound; Economists fret over rising infections and return of pandemic restrictions
Martin Arnold - FT
The rapid spread of the Delta coronavirus variant is causing economists to worry that Europe's brightening economic outlook risks being undermined by rising infection levels and the reintroduction of travel and social restrictions.
/on.ft.com/3wBE2Xg
A fetish of illiquidity is driving finance; History repeating itself as banks and pension funds bet more on private assets
John Plender - FT
John Maynard Keynes famously declared in his General Theory of Employment, Interest and Money that "of the maxims of orthodox finance, none, surely, is more antisocial than the fetish of liquidity". If the great economist were around today he might have worried instead about the fetish of illiquidity.
/on.ft.com/3xB2SYQ
SEC Charges TheBull with Selling "Insider Trading Tips" on the Dark Web
SEC
The Securities and Exchange Commission today charged Apostolos Trovias, a Greek national, with perpetrating a fraudulent scheme to sell what he called "insider trading tips" on the Dark Web. The Dark Web, which facilitates anonymity by obscuring users' identities, allows users to purchase and sell illegal products and services, and in this case, insider trading tips.
/bit.ly/3hTqiBS
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| Wellness Exchange | | An Exchange of Health and Wellness Information | These Countries Are Looking Ahead to Living With Covid-19; The virus won't go away, but vaccinations show a path to normalcy
Julie Wernau, Karina Shah and Feliz Solomon - WSJ
A handful of countries, including the U.S., are leading the way toward a future where Covid-19 has faded into the background. Even as the highly contagious Delta variant of the coronavirus is propelling new infections world-wide, these governments are hoping that their high vaccination rates will protect many of the most vulnerable to the disease, allowing a return to more normal life.
/on.wsj.com/3e8QUOo
Australia's Delta Outbreak Shows Vaccines Protect Against Hospitalization; Figures are in line with evidence from other countries, including the U.K. and Israel
Mike Cherney - WSJ
Early data from Australia's outbreak of the Covid-19 Delta variant suggest that two vaccine doses offer significant protection against severe illness and hospitalization. Health authorities in Sydney, Australia's most populous city that is currently under lockdown because of its Delta outbreak, said Saturday that no one who has received two doses of a vaccine needed to be hospitalized. Of the 47 people in the hospital, 37 haven't been vaccinated, according to data provided on Saturday.
/on.wsj.com/3z1XA9d
Locked-down Sydney warned worse may be ahead, COVID-19 cases at 2021 high
Lidia Kelly - Reuters
Australia's New South Wales state reported its biggest daily rise in locally acquired coronavirus infections this year on Saturday, with authorities warning that worse may yet to come for Sydney, which is in a three-week hard lockdown.
/reut.rs/3AWdmUu
China Is the First Crack in the Covid Recovery; Beijing's surprise easing measure signals the global upswing may not be as robust as anticipated.
Daniel Moss - Bloomberg
China is the first noticeable crack in the Covid-19 recovery. The only major economy to show any growth at all last year, the country is now taking steps to ease monetary policy — just when the Federal Reserve is beginning to lay the groundwork to taper asset purchases. A significant slowing of its expansion might give other commercial powers pause about the robustness of the global upswing, and a taste of how hard it may be to meaningfully withdraw stimulus.
/bloom.bg/3wxzHVi
Delta Variant Spills Out of Midwest Tourist Hub-Turned-Incubator
Josh Wingrove - Bloomberg
Branson close to conservative areas with low vaccination rates; Tourist town has ended all mitigation despite hospitalizations
Nestled in Missouri's Ozark Mountains, the city of Branson has long drawn throngs of U.S. tourists with live country music, a replica Titanic, Dolly Parton's Stampede dinner show, an 1880s theme park and an oversized bust of Ronald Reagan.
/bloom.bg/3xCsgNE
Woman Infected With Two Covid-19 Variants Highlights Next Risk
Suzi Ring - Bloomberg
The 90-year-old died after contracting alpha and beta variants; Co-infection rates likely underestimated from lack of testing
A 90-year-old woman died after becoming infected with two different strains of Covid-19, revealing another risk in the fight against the disease, Belgian researchers found.
/bloom.bg/3hyKM4b
Young Americans Aren't Getting Vaccinated, Jeopardizing Covid-19 Fight; Slow uptake of Covid-19 shots among 18-to-29-year-olds is complicating mass vaccination campaign; U.S. ramps up outreach to young adults
Laura Cooper and Sabrina Siddiqui - WSJ
Millions of Americans have rolled up their sleeves to get vaccinated against Covid-19, but one group is well behind: young adults. Their reluctance is a significant part of why the U.S. missed the Biden administration's goal of getting 70% of the adult population a first dose by July 4, and it is impeding efforts to develop the communitywide immunity sought to move past the pandemic and fend off Delta and other variants.
/on.wsj.com/3wxL2ob
Another Covid Panic; People suffer from other illnesses, too.
James Freeman - WSJ
The latest variety of Covid fear-mongering is tied to the so-called Delta variant strain of the virus, and now some investors are wondering if the new health threat could dent global economic growth. Monica Gandhi, a professor of medicine at the University of California, San Francisco, tries to add some useful context in the Washington Post:
/on.wsj.com/3wuF07H
A Covid Test as Easy as Breathing; Scientists have been dreaming of disease-detecting breathalyzers for years. Has the time for the technology finally come?
Emily Anthes - NY Times
In May, musicians from dozens of countries descended on Rotterdam, the Netherlands, for the Eurovision Song Contest. Over the course of the competition, the performers — clad in sequined dresses, ornate crowns or, in one case, an enormous pair of angel wings — belted and battled it out for their chance at the title.
/nyti.ms/3hEsRsZ
Countries Using China, Astra Shots Increasingly Eye Boosters
Bloomberg News
Delta variant sparks fears that two shots aren't enough; Concerns variant could dim protection from non-mRNA shots
Growing concern that Covid-19 vaccines being deployed across much of the developing world aren't capable of thwarting the delta variant is prompting some countries to look at offering third doses to bolster immunity against more-infectious virus strains.
/bloom.bg/36CcG8R
Israel Approves 3rd Vaccine Dose for Immunocompromised, TV Says
Alisa Odenheimer - Bloomberg
Israel's Health Ministry has granted permission to health providers to offer a third dose of the Pfizer Inc. - BioNTech SE coronavirus vaccine to immunocompromised patients, Channel 12 news reported Monday.
/bloom.bg/3wyQzeh
Brazil's Covid wave hits pregnant women especially hard; Strained healthcare, inadequate access and a more contagious variant blamed for jump in maternal deaths
Michael Pooler and Carolina Pulice - FT
Following two difficult pregnancies, it seemed it might be third time lucky for Vanessa de Oliveira Silverio. But in her 34th week of gestation, she began to feel unwell and developed a cough. A coronavirus test returned positive, and breathing became difficult.
/on.ft.com/3rbUsEY
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | EBS Goes Live with Next Generation EBS Direct Platform
CME Group
EBS, a leading provider of electronic trading platforms and technology services in foreign exchange markets, has launched its next-generation EBS Direct platform.
/bit.ly/3yIUbvu
CME Group International Average Daily Volume Reached 5.1 Million Contracts in Q2 2021, Up 6% from Q2 2020
CME Group
CME Group, the world's leading and most diverse derivatives marketplace, today announced that its international average daily volume (ADV) reached 5.1 million contracts in Q2 2021, up 6% year on year.
/bit.ly/3i3gYvh
SGX reports market statistics for June 2021
SGX
Derivatives traded volume rises on increased risk-management demand; Secondary fundraising climbs to highest amount in a year; Singapore Exchange (SGX) today released its market statistics for June 2021. Derivatives total traded volume on SGX rose 5% month-on-month (m-o-m) to 18.9 million contracts, the highest in three months.
SGX's suite of pan-Asia benchmark equity derivatives climbed 4% m-o-m in June to 13.5 million contracts. This included a 14% m-o-m increase in SGX FTSE China A50 Index Futures to 7.9 million contracts and a 7% m-o-m gain in SGX Nikkei 225 Index Futures to 1.2 million contracts.
/bit.ly/3B3eupN
Trading to Continue After Declaration of a State of Emergency
JPX
The government of Japan announced yesterday that it will declare a state of emergency for Tokyo effective from July 12 over the spread of Covid-19. However, trading for all of the markets on the Tokyo Stock Exchange, Osaka Exchange and Tokyo Commodity Exchange will continue as usual.
/bit.ly/3yOH3oN
Vienna Stock Exchange: Over 50 New US Securities In The "Global Market" Segment
Mondovisione
As of today, 52 new US securities are continuously tradable in the international market segment of the Vienna Stock Exchange, the global market. The newly listed blue chips operate in a wide range of industries: The increased interest in the healthcare sector is met, for example, with Medtronic Plc (medical technology) or also Moderna Inc (biotech, mRNA vaccine developer).
/bit.ly/3k5ahvD
The Era of the Retail Trader Includes Micro Futures
Jim Iuorio - CME Group
2021 has been the year of the retail trader. According to Bank of America, more money has been invested in the U.S. stock market in the last six months than in the previous 12 years combined.
/bit.ly/3z1X7nt
Fine Foods & Pharmaceuticals N.T.M. S.p.A. moves from AIM Italia to Borsa Italiana's STAR segment
Euronext
Third move to Borsa Italiana's STAR segment in 2021; Fine Foods & Pharmaceuticals N.T.M. S.p.A. brings the total number of companies listed on Borsa Italiana's STAR segment to 80
Borsa Italiana, part of the Euronext Group, today congratulates Fine Foods & Pharmaceuticals N.T.M. S.p.A. on its move from AIM Italia to Borsa Italiana's STAR segment.
/bit.ly/2VxEI3k
E-PANGO lists on Euronext Growth Paris
Euronext
EUR6.1 million raised - market capitalisation of EUR27.3 million; 116th listing on Euronext
Euronext today congratulates E-PANGO, a company specialising in the supply of electricity and gas to companies and communities, on its listing on Euronext Growth Paris (ticker code: ALAGO).
/bit.ly/3hXNnUd
Euronext's ESG WORLD 75 index chosen by the Federal Government of Germany's Pension and Care Funds
Euronext
Euronext launches today the Euronext V.E ESG World 75[1] Index, an International Climate Transition Benchmark (CTB) index, focused on worldwide equity investments, which will support the German Federal Government's Special Pension and Care Funds in aligning its Sustainable Finance Strategy with the climate transition targets of the European Union (EU). Euronext's innovative and global Environmental, Social and Governance (ESG) index will be replicated by four German Federal Government's Special Pension and Care Funds, comprising of several billion euros in assets under management.
/bit.ly/3ATFs32
Eurex Exchange Readiness Newsflash | Member Section Release 2.3: Go-live and publication of videos
Eurex
With this Newsflash we would like to inform you about the successful introduction of the Member Section Release 2.3. We kindly ask all Trading Members, Multi-Member Providers and ISVs to get familiar with the new structure and design of the Member Section interface. To support you with the adoption, we have published tutorial videos on the Eurex website:
/bit.ly/3i50enL
Notice of Disciplinary Action
CME Group
NON-MEMBER: Youli Zhang
CME RULE VIOLATIONS: CME RULE 575. DISRUPTIVE PRACTICES PROHIBITED (in part)
All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes. A. No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.
PENALTY: Based on the record and the Panel's findings and conclusions, the Panel ordered Zhang to pay a fine in the amount of $40,000. The Panel also suspended Zhang from all direct and indirect access to any designated contract market, derivatives clearing organization, or swap execution facility owned or controlled by CME Group Inc. beginning on the effective date below and continuing for a period of five years after the fine is paid in full.
/bit.ly/3i4fGjK
Notice of Disciplinary Action
CME Group
NON-MEMBER: Yangfen Li
CME RULE VIOLATIONS: CME RULE 575. DISRUPTIVE PRACTICES PROHIBITED (in part)
All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes. A. No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.
PENALTY: Based on the record and the Panel's findings and conclusions, the Panel ordered Li to pay a fine in the amount of $50,000. The Panel also suspended Li from all direct and indirect access to any designated contract market, derivatives clearing organization, or swap execution facility owned or controlled by CME Group Inc. beginning on the effective date below and continuing for a period of five years after the fine is paid in full.
/bit.ly/3e4GGyz
Notice of Disciplinary Action
CME Group
NON-MEMBER: Wangquan Zhao
CME RULE VIOLATIONS: CME RULE 575. DISRUPTIVE PRACTICES PROHIBITED (in part)
All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes. A. No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.
PENALTY: Based on the record and the Panel's findings and conclusions, the Panel ordered Zhao to pay a fine in the amount of $30,000. The Panel also suspended Zhao from all direct and indirect access to any designated contract market, derivatives clearing organization, or swap execution facility owned or controlled by CME Group Inc. beginning on the effective date below and continuing for a period of five years after the fine is paid in full.
/bit.ly/3e9p5p2
Notice of Disciplinary Action
CME Group
NON-MEMBER: Qingquan Li
CME RULE VIOLATIONS: CME RULE 575. DISRUPTIVE PRACTICES PROHIBITED (in part)
All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes. A. No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.
PENALTY: Based on the record and the Panel's findings and conclusions, the Panel ordered Li to pay a fine in the amount of $50,000. The Panel also suspended Li from all direct and indirect access to any designated contract market, derivatives clearing organization, or swap execution facility owned or controlled by CME Group Inc. beginning on the effective date below and continuing for a period of five years after the fine is paid in full.
/bit.ly/3yQuvxo
Notice of Disciplinary Action
CME Group
NON-MEMBER: Qi Zhang
CME RULE VIOLATIONS: CME RULE 575. DISRUPTIVE PRACTICES PROHIBITED (in part)
All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes. A. No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.
PENALTY: Based on the record and the Panel's findings and conclusions, the Panel ordered Zhang to pay a fine in the amount of $40,000. The Panel also suspended Zhang from all direct and indirect access to any designated contract market, derivatives clearing organization, or swap execution facility owned or controlled by CME Group Inc. beginning on the effective date below and continuing for a period of five years after the fine is paid in full.
/bit.ly/2VzLt4E
Notice of Disciplinary Action
CME Group
NON-MEMBER: Liuyi Yang
CME RULE VIOLATIONS: CME RULE 575. DISRUPTIVE PRACTICES PROHIBITED (in part)
All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes. A. No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.
PENALTY: Based on the record and the Panel's findings and conclusions, the Panel ordered Yang to pay a fine in the amount of $30,000. The Panel also suspended Yang from all direct and indirect access to any designated contract market, derivatives clearing organization, or swap execution facility owned or controlled by CME Group Inc. beginning on the effective date below and continuing for a period of five years after the fine is paid in full.
/bit.ly/3hZ9xWe
Notice of Disciplinary Action
CME Group
NON-MEMBER: Li Li
CME RULE VIOLATIONS: CME RULE 575. DISRUPTIVE PRACTICES PROHIBITED (in part)
All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes. A. No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.
Penalty: Based on the record and the Panel's findings and conclusions, the Panel ordered Li to pay a fine in the amount of $30,000. The Panel also suspended Li from all direct and indirect access to any designated contract market, derivatives clearing organization, or swap execution facility owned or controlled by CME Group Inc. beginning on the effective date below and continuing for a period of five years after the fine is paid in full.
/bit.ly/3AVSOMb
Notice of Disciplinary Action
CME Group
NON-MEMBER: Fengqiang Wang
CME RULE VIOLATIONS: CME RULE 575. DISRUPTIVE PRACTICES PROHIBITED (in part)
All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes. A. No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.
PENALTY: Based on the record and the Panel's findings and conclusions, the Panel ordered Wang to pay a fine in the amount of $55,000. The Panel also suspended Wang from all direct and indirect access to any designated contract market, derivatives clearing organization, or swap execution facility owned or controlled by CME Group Inc. beginning on the effective date below and continuing for a period of five years after the fine is paid in full.
/bit.ly/2VAtpY7
Change of Published Location on JPX Website (Derivative-related Content)
JPX
Effective today, the published location for some derivative-related content on the JPX website has been changed.
For those who have favorites and/or bookmarks etc., please make changes accordingly.
/bit.ly/2TT6ebb
ICE Mortgage Technology Millennial Tracker Finds Share of Millennials Poised for Homeownership Increases as FICO Requirements Loosen
Intercontinental Exchange, Inc.
ICE Mortgage Technology™, part of Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology and market infrastructure, today shared that according to the ICE Mortgage Technology™ Millennial Tracker, the percentage of purchase activity to total closed loans among millennials increased for the third consecutive month.
/bit.ly/3ecnm2e
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Symphony's Seven-Year Itch; After seven years and half a billion dollars in funding, Symphony has made strides but arguably has not delivered the "big win" of living up to its early hype as a Bloomberg-killer. Max asks how long its investors will continue to back the venture, whether new CEO Brad Levy can steer it back on track, and whether Big Tech could be the way forward.
Max Bowie - Waters Technology
In the calendar year, June marks a period of change. As spring stretches into summer, the days become shorter, the nights longer. This same time period also ushered in major changes at financial messaging and collaboration platform Symphony Communications, with its acquisition of voice communications platform Cloud9 Technologies, and a changing of the guard, with Brad Levy taking the reins from founder David Gurlé.
/bit.ly/3yHdFAR
Paytm Said to Consider $270 Million Share Sale in Pre-IPO Round
Malavika Kaur Makol and Anto Antony - Bloomberg
Paytm is considering raising about 20 billion rupees ($268 million) in a funding round before its initial public offering as the startup backed by Jack Ma's Ant Group Co. enters the final leg of preparation for its listing this year, people familiar with the matter said.
/bloom.bg/3huZedo
Four Lessons For Fintech (and All) Boards
Alex Lazarow - Forbes
The mythology of renegade founders building massively successful companies is unescapable. But of course nothing happens in a vacuum. What is oftentimes left out of the narrative, is who founders surround themselves with — their team, investors and partners.
One key element, easily overlooked or misunderstood, is the Board. For some, this seems to defy conventional wisdom: that the Board's role is principally to "hire and fire" the CEO and approve strategy.
This is a mistake. The Board can play a pivotal role in a startup's growth and ultimate success.
/bit.ly/3hY46a1
Fintech Altruist Expands Portfolio to Investment Advisers
Pat Maio - Los Angeles Business Journal
Altruist Corp., a Venice-based fintech startup building a digital investment platform for registered investment advisers, is expanding its outsourced portfolio offerings.
It's a move Altruist hopes will build significant scale in an industry disrupted by younger demographics.
/bit.ly/3yPApic
How the future of fintech is rapidly taking shape in Southeast Asia
Mohammad Raafi Hossain - South China Morning Post
As traditional markets struggled to stay afloat during the Covid-19 pandemic, cryptocurrency has been rallying. In April, bitcoin hit a record high of just over US$60,000, almost 10 times what it was worth a year ago.
Retail and institutional investors are beginning to recognise the asset class as a safe-haven alternative in an uncertain economy. Last year, banking powerhouse DBS launched a cryptocurrency exchange. Traditional institutions such as BlackRock
are also embracing digital assets, increasing trust and legitimacy in the industry.
/bit.ly/3es0L27
Broadway Technology Appoints Bruce Boytim Chief Operating Officer; FinTech Expert Joins Executive Team to Drive Client Success, Capture Market Opportunity and Execute Strategic Vision
Broadway Technology
Broadway Technology, a leading provider of high-performance front-office solutions, today announced it appointed Bruce Boytim Chief Operating Officer. Boytim joined Broadway's expanded executive team to optimize business development processes, drive strategic direction and deliver seamless client experiences. He is responsible for accelerating global growth, driving day-to-day operations and ensuring Broadway's technology offerings continue to exceed client requirements.
/bit.ly/3kfkKEV
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| Cybersecurity | | Top stories for cybersecurity | Biden Warns Putin to Act Against Ransomware Groups, or U.S. Will Strike Back; Mr. Biden's phone call appeared to be a pointed ultimatum to stop the hackers, who have attacked computer networks in the United States with relative impunity.
David E. Sanger and Nicole Perlroth - NY Times
President Biden warned President Vladimir V. Putin of Russia on Friday that time was running out for him to rein in the ransomware groups striking the United States, telegraphing that this could be Mr. Putin's final chance to take action on Russia's harboring of cybercriminals before the United States moved to dismantle the threat.
/nyti.ms/2T2McKE
The Cybersecurity 202: Schools are another prime ransomware target
Joseph Marks and Aaron Schaffer - The Washington Post
K-12 schools are getting hit with a barrage of ransomware attacks, worsening the damage to children's education brought on by the pandemic and hurting their ability to return to some semblance of normalcy in the fall. It's part of a surge in attacks by hackers demanding ransom payments that has halted operations at critical industries across the nation and become a key national security concern for the Biden administration.
/wapo.st/3AXBTJc
ByteDance Said to Have Met With Officials Over Data Security
Zheping Huang and Vinicy Chan - Bloomberg
TikTok owner ByteDance Ltd. is working to ensure it complies with data security requirements after meetings with government officials over the issue earlier this year, a person familiar with the matter said. The Chinese tech giant, whose apps also include TikTok's Chinese twin Douyin and the news aggregator Toutiao, had kicked off initial preparations for an IPO of its domestic assets.
/bloom.bg/3e8h5F1
China Tightens Rules on Foreign IPOs in New Blow to Tech Firms
John Liu, Claire Che, and Lucille Liu - Bloomberg
China proposed new rules that would require nearly all companies seeking to list in foreign countries to undergo a cybersecurity review, a move that would significantly tighten oversight over its internet giants. Companies holding data on more than 1 million users must now apply for cybersecurity approval when seeking listings in other nations because of the risk that such data and personal information could be "affected, controlled, and maliciously exploited by foreign governments," the Cyberspace Administration of China said in a statement on Saturday.
/bloom.bg/2VxJFJs
Cities Key in War on Ransomware, Neuberger Tells Mayors
Teri Robinson - Security Boulevard
When the cybersecurity industry talks about how critical public-private collaboration is to fending off and responding to threats, most of the "public" part of the conversation centers around the federal government, with individual states more recently finding a louder voice. But an all-out defense against the kind of attacks recently seen against supply chains, critical infrastructure and OT targets requires the involvement of government at all levels, which is likely why mayors from across the country were asked by Deputy National Security Advisor for Cyber and Emerging Technology Anne Neuberger "to immediately convene heads of state agencies to review their cybersecurity posture and continuity plans."
/bit.ly/3k916Kp
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| Cryptocurrencies | | Top stories for cryptocurrencies | The Fed's digital dollar could bring millions into the digital economy
Scott Nover - Quartz
Cash transactions are increasingly rare. More than half of transactions in the US involved cash in 2010. The number had dropped to 28% in 2020, even before the Covid-19 pandemic, which led to wider adoption of cashless and contactless payment among businesses.
/bit.ly/3e5dhnG
Good riddance to the cryptotraders
Jim Stanford - Toronto Star
Binance runs one of the largest cryptocurrency trading operations in the world, helping customers speculate on the wild price gyrations of bitcoin and other crypto assets. But last week it closed its Ontario operations, following a crackdown by provincial regulators on cryptocurrency trading. The company also faces regulatory challenges in the U.K. and Japan.
/bit.ly/3yL88ZR
Fed Flags Crypto Assets for First Time in Financial Risk Review
Rich Miller - Bloomberg
The Federal Reserve singled out a surge in crypto asset prices for the first time in its overall assessment of the stability of the financial system, saying the rise reflected increased risk-taking by investors.
/yhoo.it/3APjYUI
Investment expert warns Bitcoin lacks key elements to make it a currency of the future; BITCOIN cannot be used as proper currency due to a "fundamental" lack that would make such digital assets a viable medium of exchange, an expert has warned.
Tom Hussey - Express
Speaking to Express.co.uk, Chris Clothier, fund manager at London-based CG Asset Management, warned potential investors in Bitcoin that despite what proponents of the cryptocurrency may say, Bitcoin lacks a fundamental element for it to be used as a transactional currency of the future. While he acknowledged the possible strengths of the blockchain network, he stressed that the market will change and investors should be careful of where they place their money. Mr Clothier's comments come as a mania of investing in Bitcoin along with various other cryptocurrencies have garnered huge traction, especially in young people. His comments come as the UK's Financial Conduct Authority banned Binanance from trading in the UK through fears of its unregulated activity.
/bit.ly/3hAJfdY
Crypto Demand From Millennials Poses Big Test for Robo-Advisers
Joanna Ossinger - Bloomberg
Surging consumer demand collides with fiduciary duty; Crypto-only robo startups look to gain early mover edge
Superficially, it should be a perfect match. Interest in cryptocurrencies has surged among the young and tech literate, exactly the same demographic targeted by the big robo-advisers.
/bloom.bg/3huVjxc
Circle listing will test top stablecoin's transparency over reserves; USD Coin issuer plans Wall Street debut as value of its tokens in circulation eclipses $25bn
Siddharth Venkataramakrishnan - FT
Circle made a big pledge this week in announcing its plans to become the first operator of a stablecoin to list on the New York Stock Exchange: chief executive Jeremy Allaire said his company would "become the most public and transparent operator of full-reserve stablecoins in the market today".
/on.ft.com/3kgNLQe
WazirX founder shares his prediction for the next big wave of crypto
Karen Gilchrist - CNBC
As the founder of India's biggest cryptocurrency exchange, Nischal Shetty has his finger on the pulse of new trends.
In 2017, after taking more than a week to buy his first bitcoin, he spotted a gap in the market to simplify trades of the then-booming digital currency.
/cnb.cx/3ebTVxw
Crypto Long & Short: A Bear Market Doesn't Spell Doom
George Kaloudis - Coindesk
In Q2, bitcoin hit an all-time high (ATH) of $64,888.99 and ended the quarter down 46% from its ATH at $35,046.22. The drop, among other factors, prompted our team to make the bold claim in a previous issue of Crypto Long & Short that cryptocurrencies are officially in a bear market.
Price declines invite the cynics in droves and once-pompous, paper-rich day traders are suddenly "in it for the tech," but a bear market need not spell doom for the institutional investor. For investors who believe in the intrinsic value of bitcoin, ether and other cryptocurrencies, bear markets shine a spotlight on tools and metrics useful for gauging market sentiment and shaping long-term investment strategy.
/bit.ly/2U3O4Dx
FBI Warns Digital Currency Exchanges and Crypto Owners of Possible Threats - Bitcoin News
Sergio Goschenko - Bitcoin.com
The U.S. Federal Bureau of Investigation (FBI) issued an industry-wide warning about possible attacks on exchanges and crypto holders this week. The institution declared that there are threats actively tracking virtual asset platforms in order to take hold of these assets, causing financial losses in the process. Sim swapping, account theft and tech support staff are the means to accomplish these attacks.
/bit.ly/3hZ61ef
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| Politics | | An overview of politics as it relates to the financial markets | China Accuses U.S. of 'Unreasonable Suppression' of Companies
Bloomberg News
Beijing firmly opposes Washington's "unreasonable suppression" of its companies after the U.S. added 23 Chinese entities to an economic blacklist, the country's commerce ministry said in a statement.
/bloom.bg/3wC93dP
China vows retaliation after US blacklists companies; China says it will take necessary measures to respond to the U.S. blacklisting of Chinese companies over their alleged role in abuses of its Uyghur people and other Muslim ethnic minorities
The Associated Press
China on Sunday said it will take "necessary measures" to respond to the U.S. blacklisting of Chinese companies over their alleged role in abuses of Uyghur people and other Muslim ethnic minorities.
/abcn.ws/2UGQ4Bq
Transcript of Press Conference By Secretary Of The Treasury Janet L. Yellen Following The Close Of The G20 Finance Ministers and Central Bank Governors Meetings
U.S. Department of the Treasury
Thank you all for joining us. I'd like to start by thanking the Italian government, especially Minister Franco and Governor Visco. They've been wonderful hosts. At the end of our G7 meetings last month, I said that I believed we were seeing a revival of multilateralism. Then, ten days ago, we got word that the overwhelming majority of the world's nations - now 132 countries representing more than 90 percent of global GDP - agreed to the outlines of a global tax deal.
/bit.ly/2UEJnA7
Nord Stream 2 Will Overshadow U.S.-German Relations for Years; By doggedly backing a Russian gas link, Angela Merkel has let down the U.S. and Europe — and left her successor only bad options.
Andreas Kluth - Blomberg
Just months before she retires from politics, German Chancellor Angela Merkel is jetting to Washington to meet U.S. President Joe Biden. The event will be staged to show a return to transatlantic harmony after four years of acrimony under Biden's predecessor, Donald Trump. But to keep up those appearances, the Americans will be hiding a crushing sense of disappointment, and the Germans a gnawing anxiety.
/bloom.bg/3xBJevF
Europe Banks on Vaccines as Countries Push Ahead With Reopening
Fergal O'Brien and Flavia Rotondi - Bloomberg
Governments bowing to public frustration, pleas from business; U.K.'s Johnson to confirm mandatory curbs will end on July 19
European governments are pushing ahead with reopening their economies, banking on a mix of vaccinations, hygiene guidelines and common sense to let life return toward normal amid a surge in Covid-19 cases.
/bloom.bg/3r57unv
EU aluminium groups seek exclusion from carbon border tax; Producers say foreign rivals will avoid levy by redirecting their low-emissions output to EU
Neil Hume - FT
European aluminium producers are calling for exclusion from the first phase of the EU's carbon border adjustment mechanism, claiming the plan will put the industry at a competitive disadvantage to foreign rivals and do little to tackle climate change.
/on.ft.com/3hyE6mm
Time to stop stock trading by US Congress representatives; Politicians in Washington should not be allowed to benefit from non-public information
John Dizard - FT
"I don't think he would steal a red-hot stove." That was the response of Congressman Thaddeus Stevens, when asked by Abraham Lincoln about the honesty of war secretary Simon Cameron
/on.ft.com/3xzI585
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| Regulation & Enforcement | | For more regulatory, visit MarketsReformWiki, our website focused on current market reform efforts. | Federal Court Permanently Bans and Imposes an over $300,000 Penalty Against Foreign Trading Platform for Offering Illegal Leveraged Transactions in Ether, Litecoin, Bitcoin and Precious Metals
CFTC
The Commodity Futures Trading Commission today announced that Judge David Hittner of the U.S. District Court for the Southern District of Texas entered a default judgment against Laino Group Limited d/b/a PaxForex (PaxForex) of St. Vincent and the Grenadines. The order imposes permanent trading, solicitation, and registration bans against PaxForex entering into transactions involving commodity interests and prohibits it from violating provisions of the Commodity Exchange Act (CEA), as charged. The order also requires the defendant to pay a civil monetary penalty of $374,864.
/bit.ly/3e3FoUq
SEC Sues Three for Insider Trading Linked to Long Blockchain
Matt Robinson - Bloomberg
A surprise name change that sent an iced-tea company's stock soaring during the 2017 crypto craze wasn't a surprise to everyone. The Securities and Exchange Commission has sued three individuals, including one who allegedly traded ahead of Long Island Ice Tea Corp.'s rebranding to Long Blockchain Corp., according to a statement Friday. Eric Watson, an undisclosed control person of the company, drove the business change and tipped off his friend and broker, Oliver Barret-Lindsay. Barret-Lindsay then told his pal, Gannon Giguiere, who made more than $160,000 in illegal profits, the SEC said.
/yhoo.it/3hRRQI5
SEC Charges Three Individuals with Insider Trading
SEC
The Securities and Exchange Commission today charged three individuals with insider trading in advance of an announcement by Long Blockchain Company (formerly known as Long Island Iced Tea Co.) that it was going to "pivot" from its existing beverage business to blockchain technology, which caused the company's stock price to soar.
/bit.ly/3hZYtrL
The Market Risk Advisory Committee Announces Agenda for July 13 Public Meeting
NFA
The Market Risk Advisory Committee (MRAC) today released the agenda for its upcoming public meeting that will be held on July 13, 2021, at 9:30 a.m. EDT via teleconference in accordance with the agency's implementation of social distancing due to the coronavirus (COVID-19) pandemic. Acting Chairman Rostin Behnam is the sponsor of the MRAC.
/bit.ly/3hQkHws
Former director pleads guilty to false document charges following ASIC investigation
ASIC
On 9 July 2021, Mr Wael Kourieh of West Ryde New South Wales, pleaded guilty to one count of making false documents and one count of using false documents under the Crimes Act 1900 (NSW) in the Parramatta Local Court of NSW.
/bit.ly/3ARdepn
ASIC secures $35 million remediation for OnePath Life customers
ASIC
OnePath Life Pty Ltd (OnePath) is remediating up to $35 million to over 40,000 customers who were sold life insurance policies over the phone between 2010 and 2016. This remediation flows from ASIC intervention and action over the past three years.
/bit.ly/2TSTscH
Remarks at Asset Management Advisory Committee Meeting
Commission Caroline A. Crenshaw - SEC
Good morning. Thank you all for the time, thoughtfulness, and energy that you bring to your work on this committee. And thank you to the staff of the Division of Investment Management for doing the same. I was pleased to see that today's agenda includes recommendations relating to diversity and inclusion and ESG. As I have said before, the work of these subcommittees is both important and timely.
/bit.ly/3e9m4VE
ESMA launches public consultations on CCP recovery regime
ESMA
The European Securities and Markets Authority (ESMA), the EU's securities markets regulator, today launched seven public consultations to gather stakeholder feedback on how to implement its central counterparty (CCP) recovery mandates.
/bit.ly/3ATLhgU
DTCC Derivatives Repository fined EUR408,000 for EMIR data breaches
ESMA
The European Securities and Markets Authority (ESMA), the EU's securities markets regulator, has fined DTCC Derivatives Repository Plc (DDRL) a total of EUR408,000 for seven infringements of the European Market Infrastructure Regulation (EMIR) regarding data confidentiality, data integrity, and direct and immediate access to data.
/bit.ly/3yTb5YF
ISDA-Clarus RFR Adoption Indicator: June 2021
ISDA
ISDA-Clarus RFR Adoption Indicator increased to an all-time high of 11.7% in June compared to 10.8% the prior month. The indicator tracks how much global trading activity (as measured by DV01) is conducted in cleared over-the-counter and exchange-traded interest rate derivatives (IRD) that reference the identified risk-free rates (RFRs) in six major currencies. On a traded notional basis, the percentage of RFR-linked IRD comprised 11.4% of total IRD in June compared to 11.8% the prior month.
/bit.ly/3e9BCsH
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Wave of Bullish Oil Bets Drives Big Price Moves; Speculative wagers on a continued rally in crude are steering outsize price swings as consumers face higher fuel costs at the pump
Hardika Singh and Amrith Ramkumar - WSJ
Hedge funds and other speculative investors recently pushed bets on rising oil prices to their highest level in years, a sign that one-sided positioning is sparking big moves in the world's busiest commodity market.
/on.wsj.com/3yQVokq
Why the meme stock revolution will last
Andy Serwer with Max Zahn - Yahoo Finance
"Oh people, look around you. The signs are everywhere."
—Jackson Browne
It's the silly season on Wall Street. It's been the case for a while now, and may continue to be for some time. The economy and markets are awash in money; from stimulus checks, Federal Reserve policy moves and rising wages, all of which are boosting stock prices to record highs.
/yhoo.it/3k9Zh04
Don't rely on markets to see inflation threat, says Summers
Gavin Jones - Reuters
Former U.S. Treasury Secretary Lawrence Summers said technical factors were probably at play in the recent surge in bond markets and warned that markets may be underestimating the risk of inflation.
/reut.rs/3yPiZlO
Megacap Tech Stocks Roar Back Into Vogue as Haven From Slowdown
Jeran Wittenstein and Ryan Vlastelica - Bloomberg
Faamg market caps have gained more than $1 trillion since June; Run of outperformance shows shift away from 'reflation trade'
Investors are getting excited about Big Tech again. With resurgent doubts about the strength of the post-pandemic boom, traders are shifting back into the tech behemoths whose dominance of high-growth industries leaves them poised to keep sales and profits rising even if the economy slows.
/bloom.bg/36x8PtK
Buy, Borrow, Die: How Rich Americans Live Off Their Paper Wealth; Banks say the wealthy are borrowing more than ever, using low-interest loans backed by their investments
Rachel Louise Ensign and Richard Rubin - WSJ
Rising stocks and rock-bottom interest rates have delivered a big perk to rich Americans: cheap loans that they can use to fund their lifestyles while minimizing their tax bills. Banks say their wealthy clients are borrowing more than ever before, often using loans backed by their portfolios of stocks and bonds. Morgan Stanley MS 3.07% wealth-management clients have $68.1 billion worth of securities-based and other nonmortgage loans outstanding, more than double five years earlier. Bank of America Corp. BAC 3.25% said it has $62.4 billion in securities-based loans, dwarfing its book of home-equity lines of credit.
/on.wsj.com/3hx6UeZ
Another Big Stock-Market Rotation Is Under Way, and Tech Is on Top Again; Investors have returned to one of the best-performing trades of recent years: marquee tech stocks
Gunjan Banerji - WSJ
Shares of big technology companies have been flying past the rest of the market. After languishing for months, the group has staged a resurgence with several tech behemoths hitting records in recent sessions.
/on.wsj.com/36sN5PM
Equities are the only sensible foundation for private pensions; Their massive long-term outperformance occurred despite world wars, the Depression and the global financial crisis
Martin Wolf - FT
"Never make forecasts, especially about the future." Nobody knows who said this first. The point, however, is that we have to make forecasts, or at least guesses, about the uncertain future. Of nothing is this truer than long-term investments for delivering security in old age. The problem — inescapable, but fundamental — is that the sensible way to do this is to invest in risky assets. The risks cannot be eliminated. Someone must bear them. The question is who this should be and how it should be done.
/on.ft.com/2UJUiYY
Spacs are falling short of their promises; Plenty of people have been buying into their success story but research points to risk for investors
Rana Foroohar - FT
Smaller, newer businesses face all sorts of challenges, some new and some age old. There is increased corporate concentration and the near monopoly power of the digital giants. The cost of complying with many regulations is proportionately higher for them and they have less access to cheap public debt markets than their bigger competitors.
/on.ft.com/3wAdohx
Meme stocks lose steam as rally fades, investors 'falling out of love'
Will Feuer - NY Post
So-called meme stocks are falling out of favor with investors as prices tumble and interest in them wanes. Purchases of meme stocks, which include GameStop, AMC, Bed Bath & Beyond and others, fell sharply last week, according to data from Vanda Research.
/bit.ly/3AQjE8i
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | U.S. Treasury's Yellen to push development banks to step up climate financing effort
David Lawder - Reuters
U.S. Treasury Secretary Janet Yellen on Sunday signaled she will push multilateral development banks further away from fossil fuel projects, saying she would ask them to "increase their climate ambition" to support the Paris Agreement on carbon emissions reductions.
/reut.rs/3xDZRai
BlackRock CEO calls for stronger climate finance plan at G20 meet
Simon Jessop, Gavin Jones - Reuters
Private firms should face sustainability disclosures; More investment needed to bring down 'green premium'; Calls for role of global institutions to be overhauled
BlackRock (BLK.N) Chief Executive Larry Fink on Sunday called for governments to develop a stronger long-term climate finance plan to unlock the private capital needed to fund the transition to a low-carbon economy.
/reut.rs/3r7Nd0O
EU's Gold Standard in Green Will Command Biggest Debt Premiums
Jill Ward and Greg Ritchie - Bloomberg
Bloc's rulebook requires mandatory impact reporting, reviews; Investors will pay up for ethical quality, greater security
Even in the world of green bonds that often command a premium over conventional debt, Europe's securities are expected to be in a league of their own.
/bloom.bg/3xE0yAf
Female Board Membership Rises in S&P/ASX 200 in June
Colleen McElroy and Andreea Papuc - Bloomberg
Women held one more seat on the boards of companies in the S&P/ASX 200 in June compared to the previous month. The average number of women directors was unchanged at 2.6, out of an average board size of 7.6. The percentage of female directorships fell to 33.8% from 33.9%.
/bloom.bg/3hARJS0
Botswana Woos Chinese Investors as Lenders Shun Coal Projects
Antony Sguazzin - Bloomberg
African nation wants to develop six mines, a rail export line; Its government is willing to help fund developments itself
At a time when funding for fossil fuel projects is drying up, Botswana is racing to develop six new coal mines and a rail link for exports, with the government prepared to put its own money into the projects.
/bloom.bg/3wE8y2S
Oil industry banker urges Houston to embrace clean energy; Bobby Tudor adds powerful voice to those warning fossil fuel hub must prepare for a transition
Justin Jacobs - FT
Houston, the epicentre of America's oil industry, needs to embrace the shift to cleaner energy to secure its economic future, one of the city's top oil bankers says.
/on.ft.com/2UEE97s
Global climate change laggards identified by MSCI emissions tracker; Analysis of more than 9,000 listed companies points to failures of disclosure and pledges on net zero emissions
Leslie Hook - FT
Greenhouse gas emissions from global listed companies will blow past the global warming targets set by the Paris climate accord in just six years, despite the plethora of net zero corporate pledges, according to a new tracker by index provider MSCI covering more than 9,000 companies.
/on.ft.com/2T7uCFu
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Steve Cohen's Bet on Melvin Leaves Point72 Trailing Hedge-Fund Peers
Katherine Burton, Hema Parmar and Nishant Kumar - Bloomberg
Steve Cohen's Point72 Asset Management barely made money in the first half of 2021, weighed down in part by a wager the billionaire made on Gabe Plotkin, one of his former star traders.
/yhoo.it/3hXn54i
Credit Suisse carves out counterparty risk role after Archegos blow-up
Reuters
Credit Suisse has carved out a new role to tackle the risks it takes in lending to investment banking clients and in other customer relationships sensitive to market moves, the bank told employees on Friday. The Swiss bank has appointed Amélie Perrier as Head of Counterparty Market Risk, it said in an internal memo seen by Reuters.
/yhoo.it/3wsI6sP
Banks Struggled Last Year, but Now They Are Set for Big Profits; JPMorgan, Goldman Sachs and other big banks are expected to report large second-quarter gains this week
Ben Eisen and David Benoit - WSJ
The economic recovery is looking good for the biggest U.S. banks. Major players such as JPMorgan Chase JPM 3.20% & Co. and Citigroup Inc. C 2.58% are expected this week to report second-quarter profit gains, a U-turn from a year ago when they were girding for a wave of Covid-19-related loan defaults.
/on.wsj.com/3igF3PJ
BNP Paribas Asset Management Holds First Close For European Infrastructure Debt Fund II
Mondovisione
BNP Paribas Asset Management ('BNPP AM') announces that the BNP Paribas European Infrastructure Debt Fund II ('Infra Debt II') has held a first close with commitments of more than EUR 300 million from European institutional investors.
/bit.ly/3ASL0KR
The Meme Stock Rally Hurt Melvin and Maplelane. It Hasn't Gotten Easier Since; Hedge funds were battered by surge of stocks such as GameStop and AMC in January
Juliet Chung - WSJ
Hedge funds walloped by the meteoric rise of stocks such as GameStop Corp. and AMC Entertainment Holdings Inc. AMC -3.65% in January are still struggling to get out from under those losses.
/on.wsj.com/3wyOKhr
Banks Are in the Economy's Waiting Room; Good news on credit and capital have propelled bank stocks this year, but that might run out of steam
Telis Demos - WSJ
Banks have done a lot to put themselves in a position to benefit from higher rates. Now investors just have to wait. Second-quarter earnings by the biggest banks in the country will start coming out Tuesday with reports from JPMorgan Chase JPM 3.20% and Goldman Sachs, GS 3.57% followed by more over the course of the week. The flow of news overall was good for banks in the second quarter. The results of the Federal Reserve's stress test paved the way for big capital returns. Credit metrics continue to look very strong, as the slowing of stimulus hasn't so far led to a surge in defaults. The Fed's tweak to its overnight reverse repo rate helped relieve some pressure on banks' bulging balance sheets.
/on.wsj.com/3xAYM2U
Goldman wrangles over whether to pay junior bankers higher salaries; Some executives argue bank must reward performance while others fear losing staff to rivals
Stephen Morris and Joshua Franklin - FT
Goldman Sachs executives are wrestling with the question of whether they need to bump up salaries for junior investment bankers this year to match rivals on Wall Street after younger staff complained they were burnt out.
/on.ft.com/2T2OYzy
Historic trend reverses as ETF fees head higher; Price war had caused a long period of decline, but that may now be coming to an end
Steve Johnson - FT
Management charges for exchange traded funds have stopped falling, and in some cases started to rise for the first time, potentially signalling an end to a multi-decade trend of ever-lower fees.
/on.ft.com/3wuKiQB
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | China Crackdown Triggers $130 Billion ADR Rout in Week of Tumult
Matt Turner - Bloomberg
Didi Global Inc.'s surprise rebuke from Beijing proved at last that there are limits to investors' seemingly insatiable appetite for Chinese stocks. The Nasdaq Golden Dragon Index -- which tracks some of the biggest Chinese firms listed in the U.S. -- saw its worst week since March with a 6.4% slump. Of the index's 98 members, only 15 managed to finish in the green this week, while 17 suffered a decline of at least 10%, according to data compiled by Bloomberg.
/yhoo.it/3AK3dua
Brexit: Eight in 10 businesses believe leaving EU will cause long-term hurt for UK economy; An exclusive poll for i shows that firms feel the Government had not done enough to support them through Brexit
David Parsley - i news
More than eight in 10 business owners believe Brexit will have a long-term negative impact on trading with almost half reporting a hit from the UK's exit from the European Union at the turn of this year, a survey conducted for i has found.
/bit.ly/3kaBs8m
World's Billionaire Factory Shudders as China Cracks Down
Blake Schmidt, Coco Liu, and Venus Feng - Bloomberg
Meteoric rise of China's uber-rich goes into reverse; 'Don't get bigger than the government,' Allan Zeman says
It was the kind of brazen PR stunt that Jack Ma might have dreamed up. But this wasn't the flamboyant Chinese billionaire who disappeared from public view eight months ago. It was Mark Zuckerberg, bobbing up and down on a hydrofoil surfboard, clutching an American flag and exuding all the confidence of a man worth $130 billion.
/bloom.bg/2UJheYn
U.K. Sold Off $42 Billion of Semiconductor Firms Before Review
Giles Turner and Kitty Donaldson - Bloomberg
Newport Wafer Fab being sold to Chinese manufacturer; Deal under review after intervention from U.K. Prime Minister
The U.K. was once the leading semiconductor innovator in Europe, producing the likes of Arm Ltd., whose technology is found in 90% of all mobile devices, and Imagination Technologies Group Ltd., which supplies chip designs used by Apple Inc.
/bloom.bg/3xBQasD
Heat Wave Hit Northwest Businesses From Christmas Trees and Doughnuts to Fish; Farms and stores in Oregon and Washington are still recovering and assessing the damage from last month's record-high temperatures
Sarah Trent, Ryan Nguyen and Orla McCaffrey - WSJ
As a heat wave bore down on the Pacific Northwest two weeks ago, Bob Turik and his team of scientists hauled 350,000 Chinook salmon by truck to get them into cooler waters they needed to survive.
/on.wsj.com/2UGio74
The LBO Crowd Offers London a Piece of the Action; Amid a rash of U.K. buyouts, a private equity firm wants to raise cash in an IPO. But there are risks to bringing in public shareholders.
Chris Hughes - Bloomberg
Call it recycling buyout-style. The private equity industry has been coaxing investors to cash out of U.K. stocks in a frenzied shopping spree on the London market this year. Now it's asking them to put money back in via a rare initial public offering of a leveraged buyout firm. The carrot is the chance to earn a cut of the huge fees garnered by this voracious part of the finance sector.
/bloom.bg/3r6cGI0
Central London Rents Jump by Record as Tenants Return to Capital
Olivia Konotey-Ahulu - Bloomberg
June's monthly rise was the first since the start of pandemic; Registrations up by 45% compared with same period in 2019
Londoners have returned to their city center with a bang. Rents in central districts surged 4.3% in June from the previous month, the fastest pace on record, as the easing of lockdown restrictions lured tenants back to urban life, according to estate agent Hamptons International. That's the first time since the start of the pandemic that rents saw a monthly increase.
/bloom.bg/3r3UbDS
Chinese investors miss out on record year for Indian tech fundraising; New rules have left field open for US and European venture capitalists
Benjamin Parkin and Mercedes Ruehl - FT
Chinese investors have effectively been cut out of India's tech sector, leaving the field clear for US and European venture capitalists in what is shaping up to be a record year of fundraising for the country's start-ups.
/on.ft.com/3hzaCVK
Private equity and the raid on corporate Britain; Depressed valuations of public companies since Brexit are fuelling a surge of interest from buyout firms flush with cash
Kaye Wiggins, Harriet Agnew and Daniel Thomas - FT
When the top brass of supermarket chain Wm Morrison gathered for their away-day in November, the company's response to the pandemic was not the only topic on the agenda. Its share price remained stubbornly low, and board members and senior managers discussed the odds that a lowball takeover offer would prove triumphant.
/on.ft.com/3r41c7z
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| Miscellaneous | | Stories that don't quite fit under the other sections | Americans Must Reclaim Their Right to Repair; A nation of tinkerers can't afford to let manufacturers monopolize the fix-it business
Adam Minter - Bloomberg
When the Apple II personal computer was shipped in 1977, it came with a detailed manual for upgrading and repairing the device. Parts were readily available from Apple Inc. (and, later, other manufacturers), and if Apple owners didn't want to fix or upgrade at home, they could find plenty of small, competitive repair businesses to do the work for them.
/bloom.bg/3wCNNoa
Employers Must Resist Remote Work's Allure; It will strain and weaken the culture and values of the company.
WSJ
The move by white-collar employers to create more balanced telecommuting policies is long overdue ("Remote Work Is the New Signing Bonus," Exchange, June 26). I appreciate the desire to reduce time wasted commuting, but employers in industries such as software and biotechnology go fully remote at their peril if they emphasize real-estate savings or employee satisfaction over innovation and effectiveness. What happens to brainstorming when people aren't in the same room? Or difficult cases of tech support, when you can't wander down the hall to find the engineer?
/on.wsj.com/3r3UBKi
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