| October 25, 2024 | "Irreverent, but never irrelevant" | | | | John Lothian
Publisher
John Lothian News | |
|
| | | | First Read | | |
| | 2024 Newsletter Subscriptions: | |
Hits & Takes
John Lothian & JLN Staff
Bloomberg has a story this morning which is our lead story about tax-loss harvesting that has echoes back to the controversy in futures trading in the late 1970s concerning spread trading. The use of futures spreads to roll tax liabilities forward, leaving traders with little to no taxes to pay, led to the Economic Recovery Tax Act of 1981.
It was this tax law that formulated the 60% long-term/40% short-term capital gains provision under Section 1256 of the Internal Revenue Code for futures trading.
The latest trend in tax-loss harvesting by Wall Street leverages "tax-aware long-short" strategies to optimize tax savings for wealthy investors, just like those old futures spreads. Traditional tax-loss harvesting involves selling underperforming investments to offset capital gains taxes from other profitable investments, i.e. unload your losers. This strategy, however, has limitations: in a bull market, investors might lack enough losses to offset their gains.
To address this, investment firms are using a sophisticated "tax-aware long-short" approach that integrates hedge fund-like strategies into individual portfolios. Here, managers strategically hold long (buy) and short (sell) positions across numerous stocks, creating built-in opportunities for tax-deductible losses. For instance, if certain positions lose value, the manager sells them, generating a tax-deductible loss while reinvesting in comparable assets to keep the portfolio balanced.
This method is designed for affluent clients with substantial capital gains, often from appreciated stocks or concentrated holdings, like company stocks acquired during tech booms. By using these losses to offset gains from, say, company stock sales, clients reduce their tax burden. A common approach is to maintain around 130% of assets as long positions and 30% as short positions, maximizing the potential for tax-harvestable losses.
The question is will the government crack down on this now legal technique? It was the abuse of the futures spreads, sold by tax professionals to non-market clients, that caused the crackdown on this tax loophole. I remember hearing a story about a rock band using the technique to offset the income from a very successful year of touring and record sales as one of the abuse cases raised. Maybe we need Taylor Swift to put on a big tax-loss harvesting position to get Congress to act.
Intercontinental Exchange (ICE) and Dun & Bradstreet (D&B) announced today that they are launching a comprehensive climate data offering, targeting a broad range of both public and private companies globally. This service will provide data on transition risks, including Greenhouse Gas emissions (Scope 1, 2, and 3), as well as physical climate risks. Leveraging ICE's geospatial intelligence and climate models alongside D&B's extensive private company database and supply chain data, the platform aims to deliver one of the widest-reaching climate data solutions on the market. The initiative is designed to meet growing investor and regulatory demands for accessible ESG and climate risk data across various asset classes. By combining D&B's data, tagged with the D-U-N-S Number for seamless integration, with ICE's existing climate data on properties, companies, and securities, the platform offers a unified source for tracking climate risks. This new solution will be incorporated into ICE Climate, a suite designed to help investors assess the financial impacts of climate-related transition and physical risks.
It appears that NYSE Arca is diving into the great big Blue Ocean of 22 hours a day equity trading, according to a press release from Intercontinental Exchange.
CFTC Commissioner Kristin N. Johnson will join the Institute of International Finance's Special Session on AI, Financial Stability, and Digital Trust on October 25, 2024, in Washington, DC. The session will bring together leaders from government, academia, and global financial institutions to discuss AI's impact on financial markets, focusing on its implications for stability and trust.
CFTC Commissioner Christy Goldsmith Romero participated in a Women in Finance roundtable organized by TheCityUK on October 23, 2024, in Washington, DC. The event focused on discussions relevant to women in the finance sector.
Here are the headlines from in front of FOW's paywall from some recent stories: Standard Chartered and TP ICAP unveil digital assets partnership, Nasdaq reports 10% revenue boost, looks to grow index options, CFTC commissioner rejects 'regulation by enforcement' in energy markets, Saudi Tadawul hires former ZISHI chief Jenkins in senior role, ANALYSIS: CME discusses emerging US Treasury futures rivalry.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
*****
Our most read stories from our previous edition of JLN Options were:
- Trish Foshee from MarketsWiki.
- Trish Foshee to retire from FIA/IFM from FIA.
- How Leaders Can Launch a Successful Listening Tour from Cboe. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
++++
Futures Industry Still Grappling with Post-Trade Challenges, Expert Says
JohnLothianNews.com
In an interview with John Lothian of John Lothian News, Joanna Davies, a managing director at OSTTRA, shed light on the ongoing challenges in the futures industry's post-trade processes. The discussion centered around the findings of an Acuiti report and the industry's response to issues that flared up in 2020. Davies emphasized that the Acuiti report served as a validation of OSTTRA's understanding of the problems plaguing the industry. "Two themes emerged," she noted. "The risk introduced by the heavy-handed position transfer process in the ETD market, and the complexity and cost of collateral and margin optimization." The reaction from clients to the report was one of fatigue, according to Davies.
Watch the video »
++++
Trump transition chief under fire for conflicts; Howard Lutnick is accused of mixing his Trump work with his personal business interests.
Rachael Bade and Jasper Goodman - Politico
Howard Lutnick, the Wall Street CEO heading up Donald Trump's transition operation, is facing accusations from some Trump insiders that he is improperly mixing his business interests with his duties standing up a potential administration. The alarm among Trump's loyalists has been compounded by the belief that Lutnick has tried to sideline a host of aides and advisers who worked in the first Trump administration in hopes of instead filling the second administration with new people who could be personally beneficial to him.
/jlne.ws/3AfmMz9
****** It is hard to stop being a salesman if that is what you do best.~JJL
++++
Duffy on Lutnick's Challenge to CME Treasury Dominance
Youtube
On "Bloomberg The Close," CME Group CEO Terry Duffy expressed concerns about permitting trades of US sovereign debt futures under foreign jurisdiction. The practice has never before been approved in the US and is not allowed by any other major country. He says "We'd be the only nation on the planet that does not oversee the laws of our own sovereign debt if we allow this to happen." raising concerns over conflict of interest.
/jlne.ws/4hcIiVX
****** Terry Duffy keeping up the drumbeat of a song really meant to distract the competition.~JJL
++++
Putin asked Musk to switch off internet over Taiwan; Russian president asked world's richest man not to activate his Starlink satellite over the island as a favour to China
Gregor Stuart Hunter in Taipei - The Telegraph
Vladimir Putin asked Elon Musk to avoid activating his Starlink satellite internet service over Taiwan as a favour to Chinese leader Xi Jinping, security officials in the US and Europe believe. A Wall Street Journal report said the richest man in the world has been in regular contact with the Russian leader since late 2022, citing several unnamed current and former officials in the US, Europe and Russia. The report does not say whether Mr Musk took any action in response to Putin's request.
/jlne.ws/3AgjZ8N
****** How do you threaten or bribe the richest man in the world? Maybe you just flatter him with access.~JJL
++++
The U.N.'s Verdict on Climate Progress Over the Past Year: There Was None; An annual assessment by the world body tracks the gulf between what countries have vowed to do and what they've actually achieved.
Brad Plumer - The New York Times
One year after world leaders made a landmark promise to move away from fossil fuels, countries have essentially made no progress in cutting emissions and tackling global warming, according to a United Nations report issued on Thursday.
/jlne.ws/48ty9jB
****** Where is the Ozempic for climate progress?~JJL
++++
Thursday's Top Three
Our top read story Thursday was American creating deepfakes targeting Harris works with Russian intel, documents show, from The Washington Post. Second was Trish Foshee to retire from FIA/IFM, an FIA announcement. Third was ICE Interest Rate Markets Hit Record Trading Volumes, from ICE.
++++
++++
|
| | | | |
| Lead Stories | Wall Street Takes Tax-Loss Harvesting to the Next Level; Money managers have a clever new tactic to cut taxes for rich clients.
Justina Lee - Bloomberg
What do you get the wealthy client who has everything? The answer, if you're a clever money manager, is a loss-making investment. That's the thinking behind Wall Street's latest innovation, a cunning spin on the famous tax-loss harvesting which has been a controversial feature of wealth management for decades. Tax-loss harvesting is the strategy of selling losing investments to offset the tax owed on gains realized elsewhere in a portfolio. It's a powerful tool deployed often in equity holdings, but it has a key limitation: An investor doesn't always have losses to harvest. That can be especially true in a US stock market that keeps notching new records after tripling over the past decade.
/jlne.ws/40dvLLP
NYSE to Extend Trading to 22 Hours A Day on Arca Exchange; Exchange expands weekday trading hours from 1:30am to 11:30pm; Trades made during additional hours will be cleared by DTCC
Katherine Doherty - Bloomberg
The New York Stock Exchange is extending trading on its Arca equities venue to 22 hours on weekdays, capitalizing on global demand for US stocks. The largest US stock exchange will offer trading on Arca - one of its main venues - from 1:30 a.m. to 11:30 p.m. eastern time on all weekdays, excluding holidays, it said in a statement Friday. The move, subject to regulatory approval, makes US listed stocks, ETFs and closed-end funds available for trading outside the normal 9:30 a.m. to 4 p.m. window. NYSE said the DTCC will continue to clear all trades in the extended hours.
/jlne.ws/3Uik5Dx
Top India Bourse IPO Hinges on Approval From Regulator, CEO Says; NSE is awaiting a no-objection certificate from SEBI: CEO; SEBI had halted NSE's IPO plans over governance concerns
Chiranjivi Chakraborty and Haslinda Amin - Bloomberg
India's largest stock exchange is awaiting clearance from the securities regulator to proceed with its public listing plans, according to Chief Executive Officer Ashish Kumar Chauhan. The National Stock Exchange of India Ltd., whose initial public offering has faced delays since it initial filing in 2016, needs approval from the Securities and Exchange Board of India to reapply, Chauhan said in a Bloomberg Television interview on Friday. "We will be able to prepare our papers" only after getting a no-objection certificate from the regulator, he said. "So, it will take time."
/jlne.ws/4e09hkv
New York Fed's SOFR Tweaks Seek 'Cleaner Read' as Market Evolves; Changes to methodology to take effect beginning Nov. 25; Central clearing for repo market to take effect June 30, 2026
Alex Harris - Bloomberg
The Federal Reserve Bank of New York is rolling out changes to a key benchmark tied to repurchase agreements next month aimed at ensuring the rate remains robust as the market for overnight lending shifts to more central clearing. Beginning Nov. 25, calculation of the Secured Overnight Financing Rate, or SOFR, will be modified by removing transactions between affiliated institutions when relevant, while the influence of so-called "specials" transactions - repo trades that command a premium relative to the general collateral rate - will be adjusted to "eliminate day-to-day variability," the New York Fed said in a statement Wednesday.
/jlne.ws/4fgguxT
Morgan Stanley Taps CEO Pick to Be Chairman as Gorman Nears Departure; Ted Pick to take over the chairman role Jan. 1
Sabela Ojea - The Wall Street Journal
Morgan Stanley said it named Chief Executive Ted Pick as the chairman of the board, succeeding James Gorman. The bank on Thursday said that Pick would take over the additional position of chairman on Jan. 1, 2025. Gorman, who earlier this week was tapped as Disney's chairman of the board, in May announced he would step down as Morgan Stanley's executive chairman at the end of the year.
/jlne.ws/3Yh3Ckt
Morgan Stanley grants post-employment perks to former CEO James Gorman; Longtime executive will receive $400,000 a year and access to a car and driver as he transitions out of top roles at bank
Joshua Franklin - Financial Times
Morgan Stanley's former chief executive James Gorman will receive $400,000 a year and access to a company car and driver in a new role as an adviser to the Wall Street bank. Gorman, 66, quit as chief executive at the end of 2023 after leading Morgan Stanley since 2010. He will also step down as chair of Morgan Stanley's board of directors at the end of this year.
/jlne.ws/40lr3eW
White House orders Pentagon and intel agencies to increase use of AI; The Biden administration is under pressure to speed up AI development while also safeguarding against potential risks associated with the technology.
Gerrit De Vynck - The Washington Post
The White House is directing the Pentagon and intelligence agencies to increase their adoption of artificial intelligence, expanding the Biden administration's efforts to curb technological competition from China and other adversaries. The edict is part of a landmark national security memorandum published Thursday. It aims to make government agencies step up experiments and deployments of AI. The memo also bans agencies from using the technology in ways that "do not align with democratic values," according to a White House news release.
/jlne.ws/3YlVVJz
***Here is the Financial Times' version of the story.
Treasuries sell-off reverberates through global markets; Volatility returns ahead of US election as government debt is hit by stronger economic data
Ian Smith in London and Harriet Clarfelt in New York - Financial Times
A sell-off in US Treasuries has sent ripples through markets from gold to currencies, as investors warn that volatility is "locked in" ahead of next month's presidential election. US government bonds are on track for one of their worst months in recent years, with 10-year yields moving up almost 0.4 percentage points to 4.2 per cent after strong economic data and an emerging "Trump trade" sent traders scrambling to redraw their expectations of the path of interest rates. The reversal has come just weeks after the US Federal Reserve signalled that an era of easing had begun with a half-percentage point cut, prompting investors to expect at least a further quarter-point cut at both remaining meetings this year.
/jlne.ws/3Un7S0s
Prediction Markets Reflect That the Clock Favors Trump; Plus, the Polymarket whale is French, 62% probability isn't a certainty, and October has failed to surprise.
John Authers - Bloomberg
Predictive Philosophy
The trade volumes of Polymarket, currently the world's largest prediction market, have just surpassed $2 billion, which is a lot. The total capitalization of all US stocks is about $56 trillion, which is much more. However, Polymarket seems to be generating far more interest than stocks right now. For Bloomberg's great new Weekend Edition, I've written an extended essay on the history of political betting, going back to the hectic trading that once flourished on the streets of Rome during conclaves to choose the next Pope. You can find the essay here. Polymarket has confirmed that the "whale" who placed a series of huge bets on a Trump win this month is French. The four related accounts that he or she used to amass bets now worth some $45 million are in the names of Princess Caro, Theo4, Michie, and Fredi9999. Details of the current amounts riding on each contract are available on the Polymarket site. All the money is on Donald Trump winning in one form or another, with the exception of one side bet of $4.30 made by Theo4 that Taylor Swift will announce that she's pregnant before year-end.
/jlne.ws/4eXueOi
Barclays Wins Court Cut in Value of UK Investor Dark Pool Trading Suit; London judge reduces claim amount by 60% by tossing suits; Bank faced claims stemming from US allegations over trading
Jonathan Browning - Bloomberg
Barclays Plc won a bid to cut more than half of the value of a London lawsuit brought by investors over allegations about its dark pool trading system after a judge struck out a series of claims. More than 100 investors including the New York City Teachers' Retirement System and Allianz Global Investors Fund jointly sued Barclays in 2020 over the allegations. They argued that the bank concealed "serious underlying misconduct in Barclays' investment banking division" between 2011 and 2016.
/jlne.ws/3YmFXij
BlackRock leads opposition to new US limits on bank ownership; Proposal by regulators requires passive investment funds to seek approval when holdings hit 10%
Brooke Masters and Stephen Gandel in New York - Financial Times
BlackRock is launching a broad-based counterattack on a regulatory effort to limit the influence of large fund managers over US banks, saying it will drive up investor costs and "disrupt the flow of capital to the economy". The Federal Deposit Insurance Corporation has put forward a proposal that would require investors, including passive investment funds, to seek its approval when they take a stake of 10 per cent or more in a vastly expanded group of banks, including hundreds traditionally overseen by the US Federal Reserve or other regulators.
/jlne.ws/4fgBXqH
The Most Disruptive Technology in Human History; Nothing has been quite as transformational as money, explains author and economist David McWilliams.
John Stepek - Bloomberg
Money is history's most disruptive technology
It's been a hectic week, what with Prime Minister Keir Starmer (via a careless choice of words) saying that shareholders aren't working people, and sweeping speculation about what the Budget might hold - the most pertinent of which for the readership of this newsletter is probably the threat to impose employer National Insurance on pension contributions.
/jlne.ws/3AeaqqT
US market increasingly ready to embrace alternative trading systems; Almost 40% of US electronic traders have "a lot" of interest in having "more innovative" trading venues to choose from, according to the latest Coalition Greenwich report.
Claudia Preece - The Trade
As equity traders continue to seek ever more innovative ways to bolster their offerings, the rise of alternative trading systems (ATSs) has followed - currently executing around 16% of all US equity volume. When it comes to the industry's opinion on "new innovative trading venues", the latest Coalition Greenwich report found that an overwhelming 91% of both US low-touch brokers and their buy-side clients have between "a little" and "a lot" of interest in the venues.
/jlne.ws/4hmMRNe
Fireside Friday with... LSEG's Emily Prince; The TRADE sits down with group head of analytics at the London Stock Exchange Group (LSEG) and CEO of The Yield Book, Emily Prince, to discuss the ever-evolving role of AI in capital markets, including how feasible its use in trading is, how market opinion is continuing to change, and the importance of a responsible, holistic approach to the technology.
Claudia Preece - The Trade
What is the sentiment towards AI and is it changing?
It is an interesting question because there is a broad spectrum of approaches across organisations. It fluctuates between those organisations that are leaning in and are on the front foot and those that are watching carefully and are engaged but they have not yet put all of their chips on the table. There are also organisations that are unsure of how to start and how to enable themselves and I think there's a humility that comes with that.
/jlne.ws/3BWHSCS
|
| | | |
|
| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Putin says it is our affair if Russia uses North Korean troops
Reuters
President Vladimir Putin said on Friday that it was Russia's business whether or not it decided to use North Korean troops and said that if Ukraine wanted to join NATO then Moscow could do what it wanted to ensure its own security. The United States said on Wednesday that it had seen evidence that North Korea has sent 3,000 troops to Russia for possible deployment in Ukraine, a move that the West is casting as a significant escalation of the Ukraine war.
/jlne.ws/3NDODfq
Putin Says Russia Won't Make Concessions to End War on Ukraine
Bloomberg News
President Vladimir Putin said Russia is open to a "reasonable compromise" but won't make any concessions to end its war in Ukraine. "We aren't going to make any concessions here, there will be no trades," Putin said in an interview with Russian state television published on Friday, after he'd hosted a summit of BRICS countries in Kazan. "We are ready to make reasonable compromises, but I don't want to go into details right now because there are no substantive negotiations."
/jlne.ws/48mzwR6
|
| | | |
|
| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Israel bombs Hezbollah arms factories in Beirut
Kieran Kelly - The Telegraph
Israel bombed several Hezbollah arms factories as it targeted the terror group's south Beirut stronghold in an overnight barrage. At least six buildings were levelled in 17 Israeli strikes, according to Lebanese state media, who described it as one of the "most violent" bombardments since the conflict with Hezbollah escalated last month. Footage showed a series of huge explosions followed by smaller blasts in the southern suburbs. The Israeli military said the sites it struck were stationed by Hezbollah "under and inside civilian buildings in the heart of populated areas".
/jlne.ws/4eYeQRN
Israel's Endgame in Gaza: Finish Off Hamas Where the War Started; Israel's military remains engaged in a ferocious campaign in the Palestinian enclave while it fights its other war in Lebanon
Omar Abdel-Baqui, Saleh al-Batati and Suha Ma'ayeh - The Wall Street Journal
A year into the war in Gaza, Israel is back at the site of its first battles and engaged in one of the most ferocious campaigns of the conflict, a do-over that offers a cautionary tale for its other war in Lebanon. Homed in on northern Gaza, Israel has issued evacuation orders for every town north of Gaza City and dispatched two new brigades, in what the military says is its latest attempt to eradicate Hamas from the enclave. It is the third major offensive in the area since the start of the war.
/jlne.ws/4fm2qTT
Three journalists killed in Israeli air strike in Lebanon; Attack on journalists who were sleeping in residential compound condemned as 'war crime' by Lebanese minister
Raya Jalabi in Beirut - Financial Times
Three journalists were killed in an Israeli air strike as they slept in a residential compound housing media workers in southern Lebanon in the early hours of Friday, an attack condemned as a war crime by a Lebanese government official. Those killed were cameraman Ghassan Najjar and broadcast engineer Mohammad Reda, who worked for Al Mayadeen, a pro-Hizbollah and pro-Iran Lebanese TV channel, the network said. Hizbollah's Al Manar TV said its camera operator Wissam Qassim was also killed in the air strike.
/jlne.ws/4e0Tp1d
Russia helping Houthi rebels strike British ships
Neil Johnston - The Telegraph
Russia has been helping Iran-backed Houthi rebels target British and Western ships in the Red Sea, defence officials believe. Houthi militants in Yemen have reportedly been using Russian satellite data as they increase drone and missile strikes on commercial vessels in response to the war in Gaza. The Wall Street Journal reported that the data used to track ships was handed over through Iran's Islamic Revolutionary Guard Corps, who were embedded with the Houthis.
/jlne.ws/40k5kEf
|
| | | |
|
| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | ICE and NYSE Launch "My Vote" Ad Campaign to Celebrate the Power of Democracy Ahead of U.S. Election
Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of technology and data, and the New York Stock Exchange (NYSE), the world's largest stock exchange, today announced the launch of their "My Vote" ad campaign, designed to celebrate the power of democracy and encourage individuals to utilize their right to vote in the upcoming U.S. election. "As we approach election day, ICE and NYSE are launching this campaign to encourage individuals to take full advantage of their right to vote, the cornerstone of our democratic process and the foundation of our republic," said Jeffrey C. Sprecher, ICE Chair & Chief Executive Officer. "Financial markets rely heavily on the free flow of capital and other freedoms that our great nation has long championed."
/jlne.ws/3NGZJ3a
The New York Stock Exchange Plans to Extend Weekday Trading on its NYSE Arca Equities Exchange to 22 Hours a Day
Intercontinental Exchange
The New York Stock Exchange, part of Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of technology and data, today announced plans to extend weekday trading on its NYSE Arca equities exchange to 22 hours a day. The extended trading would take place from 1:30 am to 11:30 pm Eastern Time on all weekdays, excluding holidays, subject to regulatory approval. The NYSE will also seek support for extended trading from the U.S. securities information processors. NYSE Group's NYSE Arca is a fully electronic exchange that ranks as the top U.S. exchange for listing and trading exchange-traded funds. All U.S.-listed stocks, ETFs and closed-end funds would be available for trading on NYSE Arca during the 22-hour weekday sessions.
/jlne.ws/4hlgheL
EasyETFs Debuts First AMETF Rooted in AI on the JSE
JSE
Trading under the alpha code, EASYAI, the AMETF aims to capture the growth opportunities emerging from the creation, adoption and deployment of artificial intelligence (AI) technologies across various industries. The fund's investment strategy targets companies positioned throughout the AI value chain-ranging from those developing foundational technologies to those enabling infrastructure and real-world applications. Benchmarked against the NYSE FactSet Global Robotics and Artificial Intelligence Index, this fund aims to capitalise on the growing opportunities around AI and the possible evolution and impacts on other markets, equities, and assets. EasyEquities is one of the largest retail investment platforms in South Africa measured by registered users. EasyEquities established EasyETFs in its efforts to expand its financial services and product offerings, to include AMETFs, in an effort to reach more users and create more accessible investment opportunities.
/jlne.ws/4ffXlwa
Member Guidance on Notification Requirements
LME
The guidance included at Appendix 1 of this Notice (the "Guidance") sets out certain circumstances in which Members would ordinarily be expected to provide information to the London Metal Exchange (the "LME").
/jlne.ws/3NFvtpn
Nasdaq Announces Mid-Month Open Short Interest Positions in Nasdaq Stocks as of Settlement Date October 15, 2024
Nasdaq
At the end of the settlement date of October 15, 2024, short interest in 3,089 Nasdaq Global MarketSM securities totaled 12,303,886,017 shares compared with 12,246,444,747 shares in 3,067 Global Market issues reported for the prior settlement date of September 30, 2024. The mid-October short interest represents 3.26 days compared with 2.94 days for the prior reporting period. Short interest in 1,659 securities on The Nasdaq Capital MarketSM totaled 2,127,809,664 shares at the end of the settlement date of October 15, 2024, compared with 2,136,615,501 shares in 1,663 securities for the previous reporting period. This represents a 1.17 day average daily volume; the previous reporting period's figure was 1.32.
/jlne.ws/4e5rxci
NSE Indices launches Nifty India New Age Consumption Index
NSE
NSE's index services subsidiary, NSE Indices Limited today launched a new thematic index Nifty India New Age Consumption. The Nifty India New Age Consumption index tracks the performance of stocks from the Nifty 500 that cater to the discretionary and aspirational spending of the new generation. It also provides insights into the evolving preferences that define modern consumer behavior in a rapidly changing market by focusing on basic industries such as Passenger Cars & Utility Vehicles, 2/3 Wheelers, Gems, Jewellery And Watches, Hotels & Resorts, Financial Technology (Fintech) etc.
/jlne.ws/4hixbL8
Reminder: Amendments to Rule 101X02.D. ("Daily Price Limits") of the Live Cattle Futures and Feeder Cattle Futures Contracts
CME Group
/jlne.ws/48i7N49
|
| | | |
|
| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Investment apps: are they up to scratch? Beware the time-consuming lure of gut-reaction trading from your handset
Moira O'Neill - Financial Times (opinion)
A good mobile app has become an important way for asset managers and brokers to give investors a positive experience. Most online investing services offer one and their functionality is much more comprehensive than a few years ago. But there are big variations in these apps. While some investment platforms only offer the basics, others are starting to offer new types of engagement that feels, dare I say it, exciting.
/jlne.ws/40d3gxQ
Nvidia's billionaire CEO says AI can do a lot of things-except take his job
Chloe Berger - Fortune
The AI armageddon will pass over Nvidia's billionaire CEO, claims Nvidia's billionaire CEO. Jensen Huang doesn't forecast a future where AI really replaces anyone, after all.
/jlne.ws/4hgxeXN
Masayoshi Son Inflates the AI Bubble Even More; Wall Street: The AI race can't get any hotter. Masa: Hold my beer.
Parmy Olson - Bloomberg
Masayoshi Son is man of extremes. His $20 million bet on Alibaba Group Holding Ltd. became the most successful of all time when it swelled to more than $70 billion after a decade. He also lost $70 billion of his net worth in the dotcom crash, but then managed to raise one of the biggest investment funds of all time - the $100 billion Vision Fund - in 2017. The 67-year-old has been on a roller coaster that would put most mortals in therapy for life.
/jlne.ws/3BYbwaV
TSMC's Arizona Chip Production Yields Surpass Taiwan's in Win for US Push
Mackenzie Hawkins - Bloomberg
Taiwan Semiconductor Manufacturing Co. has achieved early production yields at its first plant in Arizona that surpass similar factories back home, a significant breakthrough for a US expansion project initially dogged by delays and worker strife. The share of chips manufactured at TSMC's facility in Phoenix that are usable is about 4 percentage points higher than comparable facilities in Taiwan, Rick Cassidy, president of TSMC's US division, told listeners on a webinar Wednesday, according to a person who participated. The success rate, or yield, is a critical measure in the semiconductor industry because it determines whether companies will be able to cover the enormous costs of a chip plant.
/jlne.ws/3YNkocx
|
| | | |
|
| Cybersecurity | | Top stories for cybersecurity | Microsoft chief has bonus docked by $5m for 'cascade of errors' that let China hack US
James Titcomb, Technology Editor - The Telegraph
Satya Nadella, the chief executive of Microsoft, has had his bonus docked by $5.46 million (£4.2m) after the company was reprimanded for a string of security failures that exposed the United States government to Russian and Chinese hackers. The cash portion of Mr Nadella's 2024 bonus was cut from $10.66m to $5.2m at his request, Microsoft said in a filing ahead of its annual meeting. Earlier this year the US government slammed Microsoft for a "cascade of errors" that allowed Chinese hackers to gain access to email accounts of senior officials including Gina Raimondo, the US commerce secretary.
/jlne.ws/4dWaERv
|
| | | |
|
| Cryptocurrencies | | Top stories for cryptocurrencies | Binance Executive Jailed in Nigeria Is Free and Heading Home
Nduka Orjinmo - Bloomberg
A US employee of cryptocurrency giant Binance Holdings Ltd. detained in Nigeria since February has been freed and is flying home. Charges against Tigran Gambaryan, head of financial crime compliance at Binance, were dropped by the Nigerian authorities on Wednesday. On Thursday, US officials confirmed that he had been freed and was on board a US-bound plane following negotiations between the two governments.
/jlne.ws/3ND30R0
Japan Group Backs Prioritizing Bitcoin, Ether for Crypto ETFs; Members include mainstream institutions such as MUFJ Trust; Also recommends a review of taxation on crypto assets
Gareth Allan - Bloomberg
A group of Japanese companies said discussion on allowing exchange-traded funds for cryptocurrencies should focus on major tokens such as Bitcoin and Ether, as the country contemplates whether to follow overseas moves to permit the instruments. The large market value and "stable track record" of those cryptocurrencies make them suitable for investors to "build up assets over the medium to long term," the group said in a set of proposals published on Friday. It also called for a review of taxation systems including separation of tax on income earned. The debut of crypto ETFs in the US earlier this year was considered a watershed moment for the digital-asset industry, which had long battled with regulators over putting out funds backed by Bitcoin and Ether. Japanese regulators have taken a more cautious approach so far, with the head of the Financial Services Agency casting doubt on the merits of such funds in an August interview.
/jlne.ws/3YDyCMM
Netherlands seeks input on crypto tax monitoring laws to align with EU; The Dutch government wants to align its data collection rules for crypto service providers with the rest of the EU, saying it would "create more transparency."
Jesse Coghlan - CoinTelegraph
The Dutch government has asked for public input on proposed laws that would require crypto service providers, such as exchanges, to collect and share user data with the local tax authority - aligning with European Union rules. "The aim of the bill is to create more transparency about the ownership of cryptocurrencies, which can prevent tax avoidance and evasion," the Netherlands Ministry of Finance said in an Oct. 24 news release. It added "nothing will change" for crypto owners under the proposed rules as they're already required to file a tax return of their holdings to the country's tax authority, the Belastingdienst.
/jlne.ws/3Af1p0Y
Metaverse poses challenges to securities industry; SRO examines industry's foray into virtual worlds
James Langton - Investment Executive
As securities industry firms start to dabble in virtual worlds, often as a way to engage with younger investors, the U.S. Financial Industry Regulatory Authority (FINRA) is raising operational and regulatory concerns. In a new report, the U.S. industry self-regulatory organization (SRO) examined the emergence of the so-called metaverse and its potential implications for the investment industry. According to the report, while virtual worlds have long been the territory of the online gaming industry, financial firms have started exploring them as a way to engage with investors and possibly to enhance their services.
/jlne.ws/4e2FgAA
|
| | | |
|
| Politics | | An overview of politics as it relates to the financial markets | Elon Musk's Secret Conversations With Vladimir Putin; Regular contacts between world's richest man and America's chief antagonist raise security concerns; topics include geopolitics, business and personal matters
Thomas Grove, Warren P. Strobel, Aruna Viswanatha, Gordon Lubold and Sam Schechner - The Wall Street Journal
Elon Musk, the world's richest man and a linchpin of U.S. space efforts, has been in regular contact with Russian President Vladimir Putin since late 2022. The discussions, confirmed by several current and former U.S., European and Russian officials, touch on personal topics, business and geopolitical tensions. At one point, Putin asked the billionaire to avoid activating his Starlink satellite internet service over Taiwan as a favor to Chinese leader Xi Jinping, said two people briefed on the request.
/jlne.ws/40fZDaf
Trump's Newfound Wealth Hinges on Winning the Election; Truth Social could tumble, but less debt and more cash make the former president's finances more stable
Peter Grant - The Wall Street Journal
Donald Trump's businesses are as volatile as ever, but he is on firmer financial footing than he has been in recent years. Compared with 2020, however, victory or defeat in this year's election will have more significant implications for the former president's wealth, as well as his legal situation. The biggest difference for Trump this time, is his roughly $4 billion stake in Trump Media & Technology Group, which operates Truth Social, his money-losing social-media platform. The staggering sum is ephemeral, driven up by enthusiastic traders, and could be vaporized if he loses in November.
/jlne.ws/3NEHJGN
The Crypto Website Where the Election Odds Swing in Trump's Favor; Donald Trump, Elon Musk and CNN have cited election predictions from Polymarket, a betting site where crypto enthusiasts have wagered more than $100 million on who will win the presidency.
David Yaffe-Bellany and Erin Griffith - The New York Times
Donald J. Trump posted a colorful graphic on social media this week, suggesting that he was headed for victory in the presidential election. The graphic showed that Mr. Trump had a 64 percent chance of defeating Vice President Kamala Harris next month - a much rosier picture for him than the polls that indicate the election remains a tossup. Mr. Trump's post was liked more than 10,000 times, as his fans responded with emojis of raised fists and Americans flags.
/jlne.ws/4hjWCMg
Politics is distorting economic data; Partisanship continues to pollute results of influential surveys of consumer and business sentiment
Paul Donovan - Financial Times (opinion)
The writer is chief economist at UBS Global Wealth Management.
Traditionally, consumers' views on the economy have been taken as a leading indicator for political trends. If consumers are happy, incumbent politicians generally do well. If consumers are unhappy, then "it's the economy, stupid" and incumbent politicians swiftly swell the ranks of the unemployed. But in the Alice in Wonderland world of today, everything is turned upside down; politics is leading (and distorting) economics.
/jlne.ws/3AgbTNx
Trump 2.0 Haunts World Economy Chiefs Gathering in Washington; Before Vote Finance, central bank leaders gather for IMF annual meetings US election seen as global risk alongside wars and inflation
Enda Curran, Jana Randow, and Eric Martin - Bloomberg
The world's financial leaders are gathered in Washington, ostensibly to discuss technical stuff: debt, inflation, interest rates. What's really on their minds is Donald Trump. The ex-president's potential return to the White House has loomed large over this week's annual meetings of the International Monetary Fund and World Bank. At public seminars and panels, or behind closed doors at steak-house dinners, discussion kept turning to the vote that's less than two weeks away. "Everybody is talking about the US election and waiting with bated breath," Malaysia's second finance minister Amir Hamzah Azizan said in an interview.
/jlne.ws/3Yn1oQA
Trump's nostalgia for 19th century tariffs has alarming implications for the world; The former president's trade team is playing with global fire
Ambrose Evans-Pritchard - The Telegraph
Donald Trump has a mystical fixation with tariffs. His pin-up idol is the forgotten champion of 19th century protection, William McKinley. But which McKinley does he mean? The raw congressman from Ohio behind the McKinley Tariff Act of 1890, which lifted average tariffs to a 19th century high of 52pc and pushed the economy into depression? Or the chastened and wiser President McKinley, who changed his mind and came to view tariffs as leverage to secure "reciprocal" free trade deals? It matters enormously to the world - and to Britain - which of the two would inform a Trump presidency. There is evidence for both. Trump oscillates back and forth.
/jlne.ws/4fihLof
Trump plans to ban diversity and inclusion programs on his first day in office; Presidential candidate preparing a flurry of executive orders including on Project 2025 and climate agreement
Benedict Smith - The Telegraph
Donald Trump plans to ban diversity initiatives on his first day in office if he wins the presidential election, according to reports. The Republican is planning to outlaw DEI (diversity, equity and inclusion) initiatives as part of a flurry of executive orders that his allies have already drafted, according to the Wall Street Journal. He will also withdraw from the Paris climate accord, and has banned anyone associated with the Project 2025 policy document from working on his presidential transition team after it became a focus for Democrat attacks.
/jlne.ws/3Ad0nT0
Companies wrestle with when to merge as they assess Harris and Trump
Alexis Keenan - Yahoo Finance
/jlne.ws/48ipnF3
|
| | | |
|
| Regulation & Enforcement | | Stories about regulation and the law. | A new rule could make it easier to switch your bank. (Guess who hates it.)
Jordan Weissmann - Yahoo Finance
Federal regulators want to make it less of a pain to change your bank - but first, it looks like they'll have to win a battle in court. On Tuesday, the Consumer Financial Protection Bureau (CFPB) unveiled the final version of its highly anticipated open banking rule, which aims to create more competition between financial services companies by making it simpler for customers to transfer their personal data between them. The measure is in part designed to relieve some of the common headaches familiar to anyone who has ever tried to move their checking account or upgrade to a better credit card - a process that can require manually resetting a number of automatic bill payments and may mean losing years' worth of transactions history.
/jlne.ws/40mFNKz
Federal Court Orders Foreign Trader to Pay $390K for Fictitious Sales Scheme
CFTC
The Commodity Futures Trading Commission today announced U.S. District Judge Sherilyn Peace Garnett, Central District of California, granted, in relevant part, the CFTC's motion for default judgment and entered final judgment against Yueyu Bao, a Chinese citizen, for engaging in a fictitious sales scheme.
/jlne.ws/3YDQAyA
Speech of Commissioner Summer K. Mersinger to Keynote at the S&P Global Commodity Insights Nodal Trader Conference
CFTC
Good morning, and thank you for the warm welcome. A special thank you to Nodal for inviting me to join your annual Trader Conference again this year. It is truly an honor to address all of you this morning. I am more than two years into my role as a commissioner at the Commodity Futures Trading Commission, and I still feel humbled by the opportunity to stand on a stage with a microphone to address accomplished professionals like all of you. My children, on the other hand, are surprised that anyone would want to hear me talk about anything, and they are even more shocked that I would need a microphone to be heard as they are convinced that the only volume I ever use when speaking is shouting.
/jlne.ws/4dZNBFl
The Metaverse and the Implications for the Securities Industry
FINRA
The term "metaverse"2 has attracted significant attention and curiosity in recent years from the media, entertainment and technology sectors. Though the term has no concrete definition, and interpretations may differ, the metaverse is generally viewed as the next evolution of today's internet.3 For the purposes of this report, the term "metaverse" refers to virtual worlds that are immersive and interactive and may be experienced in new ways through technological developments in hardware and software.4 Metaverse environments may include digital spaces using various techniques to allow individuals to engage in social or business activities through the internet or other networked platforms.5
/jlne.ws/48k4GZc
Section V: The Metaverse and the Implications for the Securities Industry Request for Comments
FINRA
FINRA welcomes comments on this paper, including input from financial industry market participants who are currently exploring metaverse technology or have identified other use cases in the securities industry.
/jlne.ws/4hhKWJX
FINRA Highlights Metaverse Impact on Securities Industry; Potential Use Cases Include Data Visualization, Virtual Trading, Investor Education and Customer Service
FINRA
FINRA published today a new report, The Metaverse and the Implications for the Securities Industry. The report is intended to raise awareness among FINRA member firms and the broader securities industry by providing an overview of how developments related to the metaverse may impact business models and processes. While the true implications of the metaverse may not be known for years, the report analyzes potential applications, use cases and challenges for member firms and notes certain regulatory considerations.
/jlne.ws/3UjHe8T
Remarks to the 2024 AIMA APAC Annual Forum
Commissioner Mark T. Uyeda - SEC
Thank you for the kind introduction.[1] I am pleased to be at the AIMA APAC Annual Forum, which is one of the largest gatherings of regulators, hedge fund and alternative investment managers, and institutional investors in the region. Asia-Pacific, or more broadly, the Indo-Pacific area, has emerged as the center of global opportunities in the 21st Century. As former U.S. Ambassador to Japan and now U.S. Senator Bill Hagerty has observed, this region represents roughly half of the world's population and 60% of its GDP.[2] America's economy is tied closely to the region and it is important that the United States remain actively engaged with its partners in the Indo-Pacific area. Working together, all of our countries can benefit from more economic growth, increased standards of living, and enhanced regional stability. My remarks today will focus on the Indo-Pacific region and its important role in the global financial markets.
/jlne.ws/40ksnyK
Federal Court appoints receivers to director of ALAMMC Developments
ASIC
On 22 October 2024, the Federal Court made orders appointing Helen Newman and Andrew Fielding of BDO as receivers and managers of the property of David McWilliams and his wife Laura Fullarton. The receivers are tasked with conducting investigations into the amount of investor funds received by Mr McWilliams and Ms Fullarton and to provide a report to the Court within 28 days.
/jlne.ws/3UlDnrG
House of Representatives Standing Committee on Economics Opening Statement, 25 October 2024; Opening Statement by ASIC Chair Joe Longo at the House of Representatives Standing Committee on Economics, 25 October 2024.
ASIC
I am pleased to appear before the Committee once more. I am joined today by Deputy Chair Sarah Court, and fellow Commissioners Kate O'Rourke, Alan Kirkland and Simone Constant, as well as the CEO, Greg Yanco, General Counsel Chris Savundra, and CFO, Peter Dunlop. Since our last appearance before this Committee we have been making strong progress on the transformation of the agency, and achieving significant outcomes across our remit.
/jlne.ws/4hh54fj
FCA publishes results of non-financial misconduct survey
FCA
The FCA has published the results of a survey to better understand how firms record and manage allegations of non-financial misconduct. The survey of over 1,000 investment banks, brokers and wholesale insurance firms found that the number of allegations reported increased between 2021 and 2023.
/jlne.ws/40ksURo
MCI Global Investment Advisors Limited enters liquidation
FCA
On 23 October 2024, MCI Global Investments Advisors Limited entered into Creditors Voluntary Liquidation. Gareth Howarth of Path Business Recovery Limited was appointed as liquidator. MCI Global Investment Advisors Limited (the firm) is a small Authorised Alternative Investment Fund Manager that provided alternative investment fund management services for funds. This includes Novus Black Fund UK Ltd (the Fund) which is an unauthorised firm.
/jlne.ws/4hlzJrH
FCA statement on Court of Appeal judgment in Hopcraft, Johnson and Wrench
FCA
We note the Court of Appeal judgment on motor finance commission and are carefully considering its decision. In January, we introduced a pause to the time firms have to provide a final response to customers about motor finance complaints involving a discretionary commission arrangement (DCA).
/jlne.ws/4hlLUVG
First court hearing on alleged share options fraud case
SFC
Mr Tsang Chung Yu, a former independent non-executive director of Metaverse Yunji Technology Group Company Limited (Metaverse Yunji) and 11 other individuals were charged today in a fraud case involving the granting of share options following the joint operation of the Securities and Futures Commission (SFC) and the Independent Commission Against Corruption (ICAC) in January 2024 (Notes 1 and 2). Tsang and the others, appearing in the Eastern Magistracy for mention today, were charged for conspiracy to defraud by the ICAC, with an alternative charge of conspiracy to deal with property known or believed to represent proceeds of an indictable offence (Note 3). The total amount of suspected crime proceeds handled by them was approximately $4.35 million.
/jlne.ws/4eWAjKX
SFC obtains court order to freeze $6.35 billion of assets belonging to suspected manipulators of Ding Yi Feng shares
SFC
The Court of First Instance has granted an interim injunction order against 11 suspected manipulators of shares of Ding Yi Feng Holdings Group International Limited (Ding Yi Feng) in proceedings brought by the Securities and Futures Commission (SFC) under section 213 of the Securities and Futures Ordinance (SFO) (Notes 1 and 2).
/jlne.ws/48txGhl
|
| | | |
|
| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Gold Miners Crippled by Costs Risk Losing Out on Bullion's Boom
Jacob Lorinc - Bloomberg
Gold prices are at record highs. But disappointing results at the world's largest miner of the yellow metal signals companies may be struggling to capitalize on sizzling demand. Newmont Corp. shares plunged the most in more than 25 years, tumbling 15% after the Denver-based company posted earnings, revenue and profit margins that fell short of analysts' estimates in the third quarter, dragged down by higher costs for labor, diesel and other operating expenses. Top rivals Barrick Gold Corp. and Agnico Eagle Mines Ltd. also saw their shares drop.
/jlne.ws/3YmZW0A
The Intelligent Investor Is Still Worth Reading 75 Years Later; The book is less about how to make money than how not to be an idiot.
Gary Sernovitz - Bloomberg
When Warren Buffett calls a book on investing "by far the best book about investing ever written," it is common sense to concede the point. One does this while gently pointing out that The Intelligent Investor by Benjamin Graham, with a Third Edition out this week on its 75th anniversary (HarperCollins, Oct. 22), contains a lot of musty musings on railroad shares and the markets of 1972, requires (and gets) contemporary commentary by the Wall Street Journal' s Jason Zweig after each of its original chapters, and provides investment advice that would have led over the last 30 years to lousy returns.
/jlne.ws/3UnN88N
Stock Investors Grapple With String of Coin-Toss Risk Events; Key factors like US election, earnings, rates are hard to call; Market could be event-driven and erratic through year-end
Jan-Patrick Barnert - Bloomberg
Equity investors face a bewildering sequence of tough-to-predict outcomes and confusing market signals. Patience and a steady hand look like valuable attributes in navigating through the noise. There's the tight White House race, a European earnings season that's taking a turn for the better after a patchy start, a troubling grind higher in rates and a market seemingly caught between hedging for declines and preparing for a bullish leg higher.
/jlne.ws/3YeVtgi
|
| | | |
|
| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | 'We're running out of time': UN warns of 3.1C temperature rise; Paris Agreement target of 1.5C of global warming 'will be gone in a few years' without action, agency says
Attracta Mooney - Financial Times
The world is on course for a "catastrophic" temperature rise of more than 3C above pre-industrial levels, or twice a goal set by the Paris Agreement, according to a UN report that stepped up warnings that time was running out to address climate change. The latest research by the UN Environment Programme found the world's ability to remain within the target of 1.5C of global warming "will be gone within a few years" without rapid action.
/jlne.ws/3YiENEQ
Landslides, Dead Bees and Red Algae: The Hidden Cost of Two Hurricanes; Environmental damages pile onto the losses caused by Helene and Milton
Eric Niiler - The Wall Street Journal
The environmental costs of hurricanes Helene and Milton are now becoming clear. The storms damaged or destroyed 200,000 commercial beehives-a vital resource for pollinating U.S. crops-in Florida, Georgia and North Carolina. Hundreds of landslides devastated communities throughout Appalachia. And a 40-mile-long toxic red tide hovers just off Florida's Gulf Coast, threatening fish and humans. The hurricanes also killed more than 250 people in six states, and, according to Moody's RMS Event Response, caused total insured losses between $35 billion and $55 billion.
/jlne.ws/3BVXnuN
More Companies Ditch Junk Carbon Offsets but New Buyers Loom; Corporate purchasers are moving away from projects rated ineffective by a watchdog even as dealmaking at the UN climate summit offers potential for a comeback.
Akshat Rathi, Natasha White, and Demetrios Pogkas - Bloomberg
Delta Airlines Inc. has for the past few years been among the biggest corporate buyers of carbon offsets. That demand - from airlines, energy companies, automakers and logistics firms - drove forecasts of a market worth hundreds of billions of dollars in the coming years. But after strong pushback from experts, Delta is now among a growing list of major companies that have ended purchases of these cheap credits. Alphabet Inc.'s Google and EasyJet Plc have recently joined in the rejection of what had been an enormously popular approach to sustainability. Many of these companies are now focused on the more expensive task of reducing their own emissions.
/jlne.ws/4dZY4ke
Federal Court Ruling on a Reservoir Expansion Could Have Big Implications for the Colorado River; Some upstream users are racing to divert more water from the declining river, a choice that a judge wrote in a recent court ruling is "perplexing" and risks forcing cutbacks for users in the future.
Wyatt Myskow - Inside Climate News
A federal district court judge ruled last week that the U.S. Army Corps of Engineers violated the National Environmental Protection Act and the Clean Water Act when it approved expanding a Colorado reservoir. But a footnote to that decision is even more significant, experts and environmentalists say, with potentially far-reaching impacts on water management in the West and current negotiations to cut back use of the declining Colorado River.
/jlne.ws/3A3aVEl
Morgan Stanley lowers climate target, warns on sluggish transition
Simon Jessop - Reuters
Morgan Stanley has lowered its expectations for cutting emissions from its corporate lending portfolio as the world is moving too slowly to a greener economy, the bank's chief sustainability officer told Reuters. A slowdown in electric vehicle sales, lagging adoption of biofuels in aviation and funding and policy hurdles in the power sector were just some of the factors hampering progress, Jessica Alsford said.
/jlne.ws/4f9zi1Y
Business spending on sustainability bouncing back, survey finds
Joshua Neil - edie
Nine in ten sustainability professionals say their employer will increase spending on environmental projects and initiatives in the coming year, following a contraction post-pandemic.
/jlne.ws/4eVqiOk
Top Wind-Turbine Maker Reports Soaring Profit on Falling Costs
Bloomberg News
/jlne.ws/3Yjw0T0
Biden Administration Approves Lithium Mine in Race to Add Supply
Yvonne Yue Li - Bloomberg
/jlne.ws/3YA6Bpt
|
| | | |
|
| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Clear Street poaches metals traders from LME floor trader Sigma, sources
Pratima Desai and Julian Luk - Reuters
U.S. broker Clear Street, which is seeking membership of the London Metal Exchange's (LME) open outcry trading floor, has poached three metal traders from Sigma Broking, two sources familiar with the matter said. A unit of the broker, Clear Street Futures headed by Chris Smith, is planning a major expansion in LME metals trading, one of the sources said. Smith was previously the London-based global CEO at ED&F Man Capital Markets, acquired in 2022 by Marex, another LME broker.
/jlne.ws/4fjbadq
JP Morgan taps Deutsche Bank for new FX options trader; New appointment previously held positions at both Deutsche Bank and NatWest Markets.
Wesley Bray - The Trade
JP Morgan has appointed John Roberts as a new FX options trader, based in New York. He joins the firm from Deutsche Bank where he served as a currency options trader. Prior to this, Roberts spent five and a half years at NatWest Markets, most recently serving as a FX derivatives trader. Elsewhere in his tenure at NatWest Markets, he worked as a US rates strategies.
/jlne.ws/3C9Qi9V
Commerzbank Says Jefferies Has More Than 5% of Its Voting Rights
Sonia Sirletti - Bloomberg
Commerzbank AG disclosed that Jefferies Financial Group Inc. controls 5.33% of its voting rights, adding to a number of investment banks with financial instruments in the German lender. Jefferies crossed the 5% threshold that requires disclosure on Oct. 18, according to a Commerzbank statement Friday that confirmed an earlier Bloomberg report. Jefferies' position was built up to hedge UniCredit SpA's existing holdings in Commerzbank, Bloomberg reported yesterday. Milan-based UniCredit has built a 21% holding in Commerzbank, which is mostly in the form of derivatives, and said a full takeover is an option.
/jlne.ws/4eXDWR1
Commerzbank Sues Ex-Analyst Over False Sexual Assault Claim; London judge allows case over "bogus" claims to be made; Ajao's lawyer had argued that the case shouldn't go ahead
Katharine Gemmell - Bloomberg
An ex-Commerzbank AG analyst faces a trial at a London court after he was found to have made false sexual assault allegations against a colleague in his own discrimination lawsuit that he lost. The German lender was given permission by a London judge on Friday to hold a contempt of court hearing, which could result in a jail term, against fired employee Damilare Ajao. Lawyers for the bank claim he pursued a "bogus claim" and "lied on an industrial scale."
/jlne.ws/4e6VoRI
Tech boom forces US funds to dump shares to avoid breach of tax rules; Asset managers including Fidelity and T Rowe Price are bumping up against limits on size of large holdings
Nicholas Megaw and Will Schmitt - Financial Times
Large investment funds run by groups such as Fidelity and T Rowe Price are being forced to offload shares to avoid getting into trouble with US tax authorities, as this year's lopsided stock market rally has pushed them up against strict limits requiring them to maintain diversified portfolios. The Internal Revenue Service requires that any "regulated investment company" - which includes the vast majority of mutual funds and exchange traded funds - keep the combined weight of large holdings to less than 50 per cent of their overall portfolio. A large holding is anything that accounts for more than 5 per cent of assets.
/jlne.ws/40fZxzp
Hedge Fund Regal Indicted in South Korea Short-Selling Sweep
Harry Brumpton - Bloomberg
South Korean authorities have indicted one of Australia's largest hedge funds for short selling, indicating Seoul has expanded its crackdown on such trading across the financial industry. Regal Funds Management Pty Ltd said it was indicted, along with a former employee, for an alleged violation of securities trading regulation in 2019. The charges follow a market-wide review of short selling by the Korean Financial Services Commission, it said in a statement on Friday. A spokesman for Seoul Southern District Prosecutors Office declined to comment.
/jlne.ws/3A2vvEV
Korea Said to Indict BNP Paribas for Illegal Short-Selling; Move comes after Regal Funds' indictment in broader crackdown; Regulator has plan to lift short-selling ban at end of March
Youkyung Lee - Bloomberg
South Korean prosecutors have indicted BNP Paribas SA for allegedly violating short-selling rules, according to people with direct knowledge of the matter, the latest development in the country's crackdown on such trades. The French bank was charged last week with violating local capital markets law, according to the people, who requested anonymity discussing a private matter. The Seoul Southern District Prosecutors' Office earlier this month indicted a global investment bank and a global hedge fund for conducting illegal short selling, without naming them, according to a spokesman at the office.
/jlne.ws/4hkdrqf
How a $33 Billion Fund Manager Scored a Perfect Record Betting on Value
Lu Wang - Bloomberg
/jlne.ws/4eXdfvM
George Weiss Hedge Fund in Talks With Jefferies to Settle Suit
Jonathan Randles - Bloomberg
/jlne.ws/4hleRkr
Selling Stock Concentration Is the ETF Industry's New Big Idea
Isabelle Lee - Bloomberg
/jlne.ws/4fjVAxW
Millennium Among Hedge Funds Losing Money Over Failed China Deal; TCM shares plunged after Sinopharm's buyout collapsed; Millennium, Athos had TCM stakes above 5% before trimming
Bei Hu, Manuel Baigorri, and Nishant Kumar - Bloomberg
/jlne.ws/40ioslS
|
| | | |
|
| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | Will AI make work burnout worse?
MaryLou Costa, Technology Reporter - BBC
When ChatGPT burst onto the scene in late 2022, PR agency founder Anurag Garg was eager for his team of 11 to quickly incorporate the technology in their workflow, so the business could keep up with its competitors. Mr Garg encouraged his employees to use the AI language tool for the agency's long list of daily tasks, from coming up with story ideas for clients, pitches to offer the media, and transcribing meeting and interview notes. But rather than increase the team's productivity, it created stress and tension.
/jlne.ws/48jVunG
How good leaders help managers connect employees to company culture
Sheryl Estrada - Fortune
Good morning. Executive leadership often relies on managers to translate company culture to their teams-a process that includes explaining how corporate values enter into daily work and decision-making. In recent times, though, many managers have themselves felt detached from company culture, but that could be changing.
/jlne.ws/3UpNuvF
Jump Trading is offering 4-day-a-week tech jobs with $175K salaries, but they come with a catch
Jane Thier - Fortune
Would you work for 12 hours in a row? What if it meant having a four-day workweek?
/jlne.ws/48oprD2
|
| | | |
|
| Wellness Exchange | | An Exchange of Health and Wellness Information | Wellness trends are fueling the spread of health misinformation
Jonathan N. Stea - EHN
The wellness industry, now worth $5.6 trillion, often promotes alternative medicine that lacks scientific support, contributing to misinformation about mental and physical health.
/jlne.ws/3YnLhC8
Square Adds Sales and Back-Office Features for Beauty and Wellness Sellers
PYMNTS
Square has increased its offerings for beauty and wellness sellers by adding new features, partner integrations and a distribution partnership. These tools are designed to help beauty and wellness professionals with their sales, customer service and back-office operations, the company said in a Monday (Oct. 21) press release.
/jlne.ws/4hjXUa4
|
| | | |
|
| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Why the Philippines Is Building Its Capital Market
Ditas B Lopez and Andreo Calonzo - Bloomberg
The Philippines is reintroducing interest rate swaps and looking to boost the market for bond repurchase agreements to create alternative benchmarks for pricing loans, as the country posting some of the fastest growth rates in Asia prepares for increased capital demands. This would aid in financing for projects such as a potential revival of a controversial nuclear facility, airports and infrastructure, while also helping develop areas for industrial use. It remains to be seen how effective the tools could be, but financial authorities are pushing for changes they see as essential for keeping the economic momentum going.
/jlne.ws/48oseMz
Turkey Considers Ending Ban on Short-Selling of Stocks; Fund managers say ban deters inflows by preventing hedges; Ban was tightened last year in wake of twin earthquakes
Kerim Karakaya - Bloomberg
Turkish officials are discussing easing a ban on short-selling of equities in hopes of attracting more overseas inflows, people familiar with the matter said. Turkey imposed the ban early last year after a pair of earthquakes devastated entire regions in the country's southeast. Officials are now considering easing the ban gradually or lifting it completely, but details haven't been finalized and could change, the people said, asking not to be named because the discussions are private. The first step may come on the BIST-50 index of the 50 largest listed companies, they said.
/jlne.ws/3UlO7GJ
|
| | | |
|
Disclaimer: All John Lothian Newsletters, JohnLothianNews.com, MarketsWiki.com and MarketsReformWiki.com are products of John Lothian News, a division of John J. Lothian & Company, Inc. The opinions expressed in all John J. Lothian & Company, Inc. publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers. Futures and options trading involve risk. Past results are no indication of future performance. Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any website or newsletter content.
© 2024 John J. Lothian & Company, Inc. All Rights Reserved. |
|
|
