| December 20, 2022 | "Irreverent, but never irrelevant" | | | | John Lothian
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John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
Today's lead story from Crain's Chicago Business by Steve Daniels titled, "What does the crypto collapse mean for Chicago's exchanges?" is two separate interviews, one with CME's Terry Duffy and the other with Cboe's Ed Tilly. It is a timely subject with two people who are the right people to ask.
Hong Kong Exchanges and Clearing Limited today announced the opening of its New York office, led by Roger McAvoy, managing director and head of business development, North America.
Euronext has reached the milestone of "EUR1 trillion in sustainable bonds listed on Euronext markets," which they claim makes them the world's leading ESG bond venue.
CoinDesk has an exclusive story in which they figured out who received $400 million of venture capital investment from Sam Bankman-Fried that was first identified on a spreadsheet published by the Financial Times. It turns out Modulo Capital was founded by some former Jane Street traders who had offices in the same condo in the Bahamas as SBF and FTX.
It turns out that it pays to do your due diligence on who is giving you a political donation. The Financial Times and other publications are reporting that FTX seeks to claw back the funds Sam Bankman-Fried gave in political donations and will go to court to pursue the recipients if they don't cough up.
The phrase of the day is "annus horribilis," which does not refer to problems related to sitting down, but rather means "horrible year." The phrase is used in a Reuters story about what other than crypto? The story is titled "Cryptocurrencies at crossroads after annus horribilis."
Keeping with that theme, another Reuters story has the title of "Cryptoverse: Bye-bye to the year that broke bitcoin." The first paragraph includes the sentence, "The preeminent cryptocurrency has lost 60% of its value, while the wider crypto market has shrunk by $1.4 trillion, squashed by rising interest rates, vanishing risk appetite and corporate collapses including Sam Bankman-Fried's FTX." You might want to sit down while you contemplate that.
In case you were wondering, according to Bloomberg, this is the golden age of cocaine. The story is titled "The Golden Age of Cocaine Is Happening Right Now." Personally, I thought the golden age of cocaine was when it was in every bottle of Coca Cola.
Some people are getting really good at separating you from your money, whether it's adults scammed in stocks for fear of losing out via social media or in video games as kids and others were duped into making millions of dollars of purchases by Epic Games, the owner of the popular video game Fortnite. And in both cases, regulators are getting good at separating the manipulative parties from their ill-gotten gains.
The cost of the John Lothian Newsletter for 2023 for an individual subscription is going to remain the same at $200. We are increasing the cost of the enterprise subscription from $145 to $150 for 2023.
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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Matthew Lempriere Talks With JLN at FIA Expo 2022 About BSO Connecting to Exchanges Across the Globe
JohnLothianNews.com
BSO is a connectivity provider for financial services and other businesses. JLN spoke with Matthew Lempriere, BSO's head of UK and Asia Pacific, at FIA Expo 2022.
We asked him what was new at BSO. He said the company is doing a lot with RF (radio frequency) services, which it provides in the form of its RF Express and RF Ultra products. They are using microwave and millimeter wave technology, he said.
Lempriere said BSO also has fiber routes to some newer exchanges, such as Mexico, and "we are doing a lot in Brazil, we're doing a lot in Saudi Arabia and the Middle East, and particularly in crypto," he said.
Watch the video »
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Six obstacles to making affordable housing work on LaSalle Street
Judith Crown and Jason McGregor - Crain's Chicago Business
Can converting office buildings along LaSalle Street to residential spaces address Chicago's affordable housing crisis? Mayor Lori Lightfoot's administration thinks so, but some developers and affordable housing experts have doubts. Families, one of the groups most in need of affordable housing, might not find Chicago's financial district an appealing neighborhood. Here are six points that highlight the limitations in converting LaSalle Street to a residential area.
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******* Six good reasons why it will be very difficult to turn the financial district into housing.~JJL
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EU Gas Price Cap Would Have Been Triggered Over 40 Days This Year; The EU can withdraw the measure if there are adverse effects; There are worries that liquidity on exchanges could dry up
Elena Mazneva and Anna Shiryaevskaya - Bloomberg
The European Union has agreed to cap natural gas prices at EUR180 ($191) next year but with a provision that the measure could be withdrawn if there are "adverse effects" - leaving traders to figure out how likely it is to be used. The cap, which starts on Feb. 15, has a second element: the price must be above the ceiling for three days and also be EUR35 a megawatt-hour above the global price for liquefied natural for the tool to be triggered. If the cap had been introduced at the start of this year, it would have been used on more than 40 days in August and September, according to S&P Global Commodity Insights data.
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******* This is not a gas cap, it is a gas whistle.~JJL
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ESG Managers Told to 'Punch Back Hard' as PR Pros React to Attacks; After a meteoric rise, the investment strategy is being bashed by Republican politicians.
Saijel Kishan - Bloomberg
ESG is beset from every angle. Republicans want to cancel it. Business leaders are muffling their former enthusiasm. Some money managers have even scrubbed the three letters from their funds. To meet this fraught moment, brand executives who work with some of the largest US companies, including Amazon.com Inc. and Alphabet Inc.'s Google, have had a look - and their message is clear.
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****** It is not so much how hard you punch, but where you punch.~JJL
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King Charles III Is the New Face of U.K. Money; Pound notes with the new sovereign's image will begin appearing in 2024, though money with his mother's likeness will still be in circulation.
Emma Bubola - The New York TimesIn recent months, as Britain has healed from mourning its queen, the beginning of a new reign has started to show in the country's daily life. England's World Cup team sang "God Save the King." For the first time in decades, a king welcomed a new prime minister. Now, as Britons prepare for the first Christmas without Queen Elizabeth II's traditional message, the Bank of England has announced another major change.
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****** The UK has King Charles on its money and the U.S. has Donald Trump on NFT trading cards. One begins to rethink the American Revolution sometimes.~JJL
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Monday's Top Three
Our top story Monday was Maxwell Alum Bill Brodsky and Wife Turn Orange Power and Purpose Into a Lifetime of Civic Leadership, from Syracuse University. ("Wife" is Joan Breier Brodsky.) Second was Oatly, Other Deflated IPO Stocks Haunt New-Issue Market, from The Wall Street Journal. Third was the Financial Times video Fractured markets: the big threats to the financial system.
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| All MarketsWiki Sponsors» | | | | | | | John Lothian News (JLN) is the news division of John J. Lothian & Company, Inc. (JJLCO). The online media and financial services firm is staffed by derivatives industry, journalism and technology professionals. | | | | | | | John Lothian News Editorial Staff: | | | John Lothian
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| Lead Stories | What does the crypto collapse mean for Chicago's exchanges?
Steve Daniels - Crain's Chicago Business
The shocking demise last month of FTX, one of the largest cryptocurrency exchanges in the world, followed by the arrest of founder Sam Bankman-Fried on fraud charges, capped a terrible year for digital currencies and raised questions about their future in the broader financial services arena. If they have one, Chicago is home to two institutions-CME Group and Cboe Global Markets-with the expertise and credibility to help pick up the pieces, along with a potentially lucrative opportunity.
/jlne.ws/3G6Wr6B
Australian stock exchange's blockchain failure burns market trust
Byron Kaye - Reuters
In a Sydney hotel conference room in May, Tim Hogben, the head of securities and payments for ASX Ltd, which runs the Australian stock exchange, told traders, share registry operators and clearing house representatives what they were hoping to hear. A rebuild of the exchange's aging software using blockchain-based technology was largely ready after seven years of development, putting ASX on the verge of a world-first transformation that would enable it to boost trading volumes and compete more aggressively with global rivals.
/jlne.ws/3v4UUrb
The Year That Changed Banking in Europe; Within six months, the outlook for Europe's banks has changed; But to catch up with Wall Street, they have a long way to go
Nicholas Comfort and Alexandre Rajbhandari - Bloomberg
For European banks, home is no longer such a bad place to be. Lenders such as Spain's BBVA that sought to escape Europe's negative interest rates by expanding in emerging markets are looking at domestic deals again. France's BNP Paribas SA is planning to reinvest proceeds from the sale of a US unit in Europe as it builds out its franchise and expands its equities business.
/jlne.ws/3v5oKfh
FTX seeks to claw back Sam Bankman-Fried's political donations; Crypto group's new management says if funds are not returned voluntarily it will pursue recipients in court
Joshua Oliver - Financial Times
FTX will try to recoup millions of dollars in donations to US politicians made by Sam Bankman-Fried and his close associates to help pay back creditors following accusations that the contributions were funded with customers' money. The company's new management said it has been "approached by a number of recipients of contributions or other payments" seeking to return the money they received from Bankman-Fried, his companies or senior executives. FTX said it will set up a process to accept repayments, and will take legal action to get back cash that is not returned.
/jlne.ws/3vo82Il
Japanese stocks fell after the Bank of Japan lifted its cap on 10-year government bond yields.
James Mackintosh - The Wall Street Journal
Investors are often told not to fight the Fed. Japan has just shown the opposite: Markets fought the central bank, and markets won. On Tuesday the Bank of Japan lifted its cap on 10-year government bond yields from 0.25% to 0.5%, with global effects. Yields that had been suppressed by the BOJ jumped, lifting yields on Treasurys and bonds in other developed markets. The yen soared more than 3%, briefly having its biggest gain since 2009 before pulling back a bit, while Japanese stocks dropped. Two important elements stand out. First, the BOJ has begun its exit from an increasingly unrealistic policy it dubbed "yield-curve control" without, at least so far, crashing the markets.
/jlne.ws/3v2sdeu
Alleged Stock Scammers Mastered the Art of FOMO on Social Media
Drake Bennett - Bloomberg
The Department of Justice announced last week the indictment of eight men, spread around various US states, in a $100 million social-media stock scam. The defendants, under Twitter and Discord handles such as @DipDeity and the Stock Sniper, allegedly hyped stocks to their followers in coordinated campaigns. As one perpetrator succinctly put it, according to the complaint, "We're robbing f---ing idiots of their money."
/jlne.ws/3HLEVWE
Hong Kong and mainland China to expand Stock Connect scheme; Securities regulators announce agreement that will make more companies eligible for inclusion
Cheng Leng - Financial Times
More than 1,000 Chinese stocks - as well as those of multinational companies - will be included in an expanded scheme that allows investors greater access to mainland shares, while boosting trading liquidity in Hong Kong. The securities watchdogs in both mainland China and Hong Kong have announced an agreement to expand the scope of eligible stocks under the Stock Connect scheme, linking the Hong Kong bourse with those of Shanghai and Shenzhen.
/jlne.ws/3W8Vjoq
FTX's Bankman-Fried Gave Ex-Jane Street Traders Who Formed Modulo Capital $400M; Founded in early 2022, Modulo operated out of the same luxury Bahamian condominium community where Sam Bankman-Fried and other FTX employees lived.
Tracy Wang - CoinDesk
When a spreadsheet listing Sam Bankman-Fried's venture investments was published by the Financial Times earlier this month, a couple of lines stood out. They showed the former cryptocurrency kingmaker's hedge fund, Alameda Research, had invested a total of $400 million into a company called Modulo Capital. Though this amounted to one of Bankman-Fried's largest venture capital bets, Modulo's identity was a mystery, giving rise to plenty of speculation. Was it a Brazilian fund manager with a nearly identical name (besides an accent mark over the first letter O)? No. It's a multi-strategy hedge fund founded early this year by two former Jane Street traders and one developer, a person familiar with the matter told CoinDesk.
/jlne.ws/3hEdCmm
Climate Policy Has Become Central in the Fight for Global Power; Major economies are creating incentives for green investment; Russia's war in Ukraine has made Europe's shift more urgent
Ewa Krukowska, Jennifer A Dlouhy, and Laura Millan Lombrana - Bloomberg
The latest trade tensions between the US and the European Union underscore just how critical climate policy has become for geopolitical jockeying. The US Inflation Reduction Act incorporates a raft of climate-friendly industrial subsidies to bolster domestic investment, while new European Union trade laws will impose a levy on some high-carbon imports. The initiatives show how major economies are trying to create incentives to contain the damage from global warming while also keeping pace with high-stakes technological shifts.
/jlne.ws/3BQ3v4L
China's COVID surge hits Beijing trading floors, Shanghai finance hub
Reuters
COVID-19 is sweeping through trading floors in Beijing and spreading fast in the financial hub of Shanghai, with illness and absence thinning already light trade and forcing regulators to cancel a weekly meeting vetting public share sales. Many banks and asset managers have dusted off plans devised to cope with previous COVID crises, injecting another layer of unpredictability into currency and stock markets, where the outlook is clouded by a rocky exit from strict health curbs.
/jlne.ws/3WqrFuy
Sam Bankman-Fried's Lawyers Hash Out His Transfer to U.S. After Confusion in Court; The FTX founder has agreed to be extradited, with lawyers drafting documents, according to a person familiar with the matter
James Fanelli - The Wall Street Journal
FTX founder Sam Bankman-Fried inched closer to being transferred into U.S. custody to face criminal charges related to the cryptocurrency exchange's collapse, after a chaotic court hearing here Monday in which his local lawyer appeared at odds with his U.S. legal team.
/jlne.ws/3BPbf70
FTX Debtors Announce Process for Voluntary Return of Avoidable Payments; Establishes Special Email Account at "FTXrepay@ftx.us"
FTX Trading Ltd.
FTX Trading Ltd. (d.b.a. FTX.com), and its affiliated debtors (together, the "FTX Debtors"), today announced the FTX Debtors have been approached by a number of recipients of contributions or other payments that were made by or at the direction of the FTX Debtors, Samuel Bankman-Fried or other officers or principals of the FTX Debtors (collectively, the "FTX Contributors"). These recipients have requested directions for the return of such funds to the FTX Debtors. The FTX Debtors are working with these recipients to secure the prompt return of such funds to the FTX Estates for the benefit of customers and creditors.
/jlne.ws/3FKqeAj
Why the Fed Needs to Take the Digital Yuan Seriously; The e-CNY will be more than just a paperless version of cash for China's local economy. Its use in trade settlement poses a challenge to the dollar.
Andy Mukherjee - Bloomberg
If the Federal Reserve still wants proof of China's intention to challenge the dollar's hegemony, it should look no further than a small experiment currently under way in Hong Kong. Last week, Bank of China (Hong Kong), one of the city's big deposit-taking institutions, had its offer of 500 trial accounts tied to the e-CNY, the electronic version of official Chinese money, snapped up in two days. The customers are each being gifted 100 yuan in digital form, which they can spend at mainland stores, the JD.com website or a supermarket chain in Hong Kong.
/jlne.ws/3Wccupc
With Binance, Everything Is Not Fine
Genevieve Roch-Decter - CoinDesk
In reality, everything is most definitely Not Fine. Back in 2019 - when Sam Bankman-Fried (SBF) was still golden and FTX was on the up-and-up - Binance, the largest crypto exchange by trading volume, invested in the now-defunct crypto exchange's series A. Last year, it exited that transaction after SBF bought out its stake for $2.1 billion. That $2.1 billion payment, according to Binance CEO Changpeng "CZ" Zhao, was received through a combination of BUSD, BNB, FTT and IOUs (presumably - only half-kidding).
/jlne.ws/3G4W8sM
Boris Johnson's Brother Reportedly Resigns as Binance Adviser; Grayscale Developments
CoinDesk
Jo Johnson, brother of former U.K. prime minister Boris Johnson, resigned from the advisory board of crypto exchange Binance, according to London's Telegraph. Plus, Grayscale Investments is exploring options to return a portion of investment capital if the SEC refuses to approve its spot bitcoin exchange-traded fund. Grayscale is owned by the Digital Currency Group and is a sister company of CoinDesk.
/jlne.ws/3YAkGkK
Binance Ousts Tokocrypto CEO and Is Cutting 58% of Jobs at Unit
Norman Harsono - Bloomberg
Binance Holdings Ltd.'s Indonesian unit is cutting jobs and replacing its top executive after the parent company took nearly full control over it. The dominant cryptocurrency exchange now owns almost 100% of PT Crypto Indonesia Berkat, known as Tokocrypto, lifting its shareholding from more than 51% two years ago when the investment was first made, the local unit said in an emailed statement on Tuesday. Binance Chief Executive Officer Changpeng Zhao confirmed the move in a tweet on Monday.
/jlne.ws/3BMa7Bq
Coinbase's Value Is $1 Billion Below 'Joke' Token Dogecoin's
David Pan - Bloomberg
Coinbase Global Inc., the largest public digital-asset exchange in the US, is trailing behind meme cryptocurrency Dogecoin in terms of market value. The exchange now has about $8 billion in market capitalization while the value of Dogecoin - originally created as a joke in 2013 - is topping $9 billion. The measurement does not necessarily reflect the intrinsic worth of those projects, but it may show how a meme coin can outperform the shares of a major US-based exchange amid a highly volatile market.
/jlne.ws/3hJeiXB
Cryptocurrencies at crossroads after annus horribilis
Vidya Ranganathan - Reuters
To borrow from Britain's Queen Elizabeth, 2022 is not a year on which the cryptocurrency world shall look back with undiluted pleasure. Crashes, contagion, collapses came in such quick succession that investors were, towards the end of the year, asking serious existential questions.
/jlne.ws/3HMm25W
Cryptoverse: Bye-bye to the year that broke bitcoin
Tom Wilson, Medha Singh and Lisa Pauline Mattackal - Reuters
Bitcoin staggered into 2022. It ends the year slumped in an alleyway, robbed of its cocktail of cheap money and leveraged bets, shunned by the establishment. The preeminent cryptocurrency has lost 60% of its value, while the wider crypto market has shrunk by $1.4 trillion, squashed by rising interest rates, vanishing risk appetite and corporate collapses including Sam Bankman-Fried's FTX.
/jlne.ws/3j7G68s
AIG to close division at heart of 2008 financial crisis
Aaron Elstein - Crain's New York Business
American International Group has announced it will finally close the notorious division whose collapse in 2008 nearly wrecked the global financial system and forced taxpayers to commit $182 billion in bailout money to rescue the reckless insurer.
/jlne.ws/3Wf9Aju
Billions of Dollars in Fed Discount Window Suggests All Is Not Well in Banking; How much is that money in the window? The one with the stigma attached to it?
Tracy Alloway - Bloomberg
You may remember the Federal Reserve's discount window from such crises as 2008 or 2020. The facility allows banks to trade collateral - usually bundles of loans - for emergency liquidity from the Fed. Use of the discount window tends to coincide with the darkest days of market turmoil, with banks typically reluctant to tap the facility as it's generally thought to be a sign of poor liquidity management or financial strain. While institutions that do go to the window aren't immediately named and shamed publicly, rumors of who's using it and why can be brutal, leading to that much-discussed "discount-window stigma."
/jlne.ws/3jgiVsT
Biodiversity Emerges as New Risk for Asset Managers After UN Summit; COP15 agreement prompts sector to sit up and take notice, with few existing funds focused on natural capital.
Alastair Marsh - Bloomberg
Fund managers who haven't cared about biodiversity may soon find they have to. In the early hours of Monday in Montreal, a deal was struck that has the potential to shake up the regulatory landscape for the investment industry. After four years of talks, UN negotiators hunkered down for two weeks at the COP15 biodiversity summit to produce a framework that KPMG says provides "an unambiguous message" to firms on the need to start disclosing their biodiversity footprint.
/jlne.ws/3WrTjbf
Java Without Java? The Crisis Brewing in Coffee; The Indonesian island is a byword for caffeine. The woes piling up for the coffee industry are on full display
Daniel Moss - Bloomberg (opinion)
In coffee country, people don't need need an extra shot to recognize their future is tough. On an iconic Indonesian island, powerful forces are eroding an industry that not only helped caffeinate the world, but provided livelihoods for generations and had a significant historical role as a template for economic development. It's not outlandish to contemplate Java without java.
/jlne.ws/3HKKEMp
Europe Becomes a Semi-Reluctant Interventionist in Natural Gas Markets
Bloomberg
After months of wrangling, Europe has agreed on its strongest tool yet for intervention in energy markets. It's just not clear how much some members of the bloc really want to see it used. The protracted negotiations that resulted in a final agreement on a natural gas price cap suggest a process that was driven as much by political necessity as a realistic plan to ease the crisis.
/jlne.ws/3OZeRsL
Bank of England set to step up CCP and CSD supervision; In its annual supervision of financial market infrastructures (FMI) report, the central bank warned that these entities are so crucial to stability that any disruption could have consequences that affect the entire financial system.
Laurie McAughtry - The Trade
The Bank of England's annual supervision of financial market infrastructures (FMI) report this week laid out plans for the future supervision of systematically important FMIs.
/jlne.ws/3BPrIrT
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | How the algorithm tipped the balance in Ukraine
David Ignatius - The Washington Post
Two Ukrainian military officers peer at a laptop computer operated by a Ukrainian technician using software provided by the American technology company Palantir. On the screen are detailed digital maps of the battlefield at Bakhmut in eastern Ukraine, overlaid with other targeting intelligence - most of it obtained from commercial satellites. As we lean closer, we see can jagged trenches on the Bakhmut front, where Russian and Ukrainian forces are separated by a few hundred yards in one of the bloodiest battles of the war. A click of the computer mouse displays thermal images of Russian and Ukrainian artillery fire; another click shows a Russian tank marked with a "Z," seen through a picket fence, an image uploaded by a Ukrainian spy on the ground.
/jlne.ws/3YCWUEQ
Key Trends in the Size and Composition of OTC Derivatives Markets in the First Half of 2022
International Swaps and Derivatives Association
The latest data from the Bank for International Settlements over-the-counter (OTC) derivatives statistics shows a significant increase in gross market value and gross credit exposure of OTC derivatives during the first half of 2022 compared to the first half of 2021. The increase in market value was driven by elevated global uncertainty and market volatility related to higher-than-expected inflation and the war in Ukraine.
/jlne.ws/3BNRGfF
Explosion Reported at Russian Pipeline Bringing Gas to Europe
Bloomberg News
An explosion was reported at a Russian gas pipeline that goes to Ukraine for further supplies to Europe. The blast occurred at the section of the Urengoy-Pomary-Uzhgorod link, according to Russian media reports on Tuesday, which cited the press office of the regional governor. It wasn't immediately clear if flows of gas were impacted.
/jlne.ws/3jjy6Bg
Germany Says It Won't Be Buying Russian Oil at All in 2023; Germany is in talks with Kazakhstan to replace Russian oil; Transneft said Germany had sent request for Russian oil for 1Q
Petra Sorge and Alex Longley - Bloomberg
Germany rejected a claim that it plans to buy Russian oil early next year, saying that it will instead import crude oil from Kazakhstan. Europe's largest economy has said previously that it plans to halt imports of Russian crude by the end of this year after the Kremlin's invasion of Ukraine, but that was thrown into doubt when the Chief Executive Officer of Russia's oil pipeline operator said it had received requests for Russian crude supplies in the first quarter of 2023.
/jlne.ws/3POjN3Z
Exxon Is Avoiding Tankers That Previously Transported Russian Oil; Shell Plc made a similar move for shipments from Dec. 1; Move pressures owners to choose between Russia, non-Russia
Ali Asad Zulfiqar and Alex Longley - Bloomberg
Exxon Mobil Corp., is avoiding hiring oil tankers that previously carried cargoes from Russia, putting itself in the same camp as Shell Plc with a move that pressures owners to choose whether to serve Moscow's interests or not. The largest oil company in the US began asking that, from Dec. 5, shipowners must ensure the tankers on lease to Exxon haven't carried crude cargoes which are either Russian, originated in Russia, or come from a person connected with Russia, a clause seen by Bloomberg shows. Failure to do so would allow Exxon to terminate the charter.
/jlne.ws/3Vdmu09
Surrender to a Drone? Ukraine Is Urging Russian Soldiers to Do Just That; Capitalizing on reports of low Russian morale, Ukraine has begun offering enemy troops detailed instructions on how to make their way over the battlefield and lay down their arms.
Marc Santora - The New York Times
Tens of thousands of drones have been employed across Ukraine to kill the enemy, spy on its formations and guide bombs to their targets. But this month the Ukrainian military began a program to use drones in a more unusual role: to guide Russian soldiers who want to surrender.
/jlne.ws/3Wea7C6
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | HKEX Opens New York Office, Supporting Growing International Client Base
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Tuesday) the opening of its New York office, expanding the exchange group's international footprint and supporting its growing global client base. Headed by Roger McAvoy, Managing Director and Head of Business Development, North America, the New York office will provide an on-the-ground dedicated team for HKEX's North American customers. The new office will promote HKEX's liquid primary and secondary cash markets, its exclusive connectivity with Mainland China's markets and its diverse suite of derivatives, which together constitute Asia Pacific's most comprehensive financial market ecosystem.
/jlne.ws/3FJHZ2J
Cboe Global Markets Announces Election of Hillary A. Sale to Cboe U.S. Securities Exchanges, CFE and Cboe SEF Boards
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced the election of Hillary A. Sale as a new member of the Boards of Directors for the Cboe U.S. Securities Exchanges, Cboe Futures Exchange, and Cboe SEF. Ms. Sale is the Associate Dean for Strategy, the Agnes Williams Sesquicentennial Professor of Leadership and Corporate Governance, and a Professor of Management at Georgetown University. Ms. Sale is being added as an additional director on each of the boards, bringing the number of directors on each board to nine.
/jlne.ws/3HLMuN3
Nasdaq CEO Adena T. Friedman to Assume Additional Role as Chair of the Nasdaq Board of Directors; Michael R. Splinter appointed Lead Independent Director
Nasdaq
Nasdaq, Inc. (Nasdaq: NDAQ) announced today its Board of Directors has unanimously elected Adena T. Friedman to the role of Chair of the Board of Directors, effective January 1, 2023, in addition to her current position as Chief Executive Officer of the company. Friedman succeeds Michael R. Splinter, who has been elected Lead Independent Director.
/jlne.ws/3HQaNt2
Is The Fed Moving Too Fast or Not Fast Enough?
Nasdaq Trade Talks
Mercer Advisors Chief Investment Officer Don Calcagni joins Jill Malandrino on Nasdaq #TradeTalks to discuss if the Fed is moving too fast or not fast enough.
/jlne.ws/3FJs98h
EEX Press Release - Exchange Council paves the way for product bundle on EEX power and natural gas markets
EEX
The Exchange Council of the European Energy Exchange (EEX) held its last meeting of the year, chaired by Dr. Bernhard Walter, Head of Market Design and Regulatory Affairs at EnBW AG, on 8 December 2022. The main topics were the expansion of EEX's product portfolio on the Power and Gas Derivatives Markets, the harmonised settlement window and the current debate on a price cap for gas. New members of the Exchange Council are the representatives of Eni Global Energy Markets S.p.A., Philip Van De Wouwer, Flow Traders B.V., Erik-Jan Nieboer, and Roderick Timmer for Cross Options B.V.. All other current members remain on the Council.
/jlne.ws/3WduO0T
Regular constituents change in KRX Minimum Volatility Index
KRX
There will be regular constituents change in KRX Minimum Volatility Index, which are effective from December 23th, 2022.
/jlne.ws/3FLk9ni
Revision in Nifty G-Sec Sep 2032 V1 Index
NSE
NSE Indices Limited has decided to revise the index name of Nifty G-Sec Sep 2032 V1 Index as mentioned hereunder.
/jlne.ws/3G5YQ1a
Announcement on the Release of Steel Rebar Futures Option Contract Specifications and Silver Futures Option Contract Specifications
SHFE
The Steel Rebar Futures Option Contract Specifications and Silver Futures Option Contract Specifications of the Shanghai Futures Exchange, which have been approved by the Board of Directors of Shanghai Futures Exchange and reported to the China Securities Regulatory Commission, are hereby released and will come into effect from the date of listing the contracts.
/jlne.ws/3WuOAoK
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | FTX Collapse Is 'Golden Opportunity' for Developers, Says Tezos Co-Founder
Fran Velasquez - CoinDesk
Tezos' Kathleen Breitman sees the collapse of FTX bringing down to Earth expectations for crypto-based platforms. The blockchain protocol platform co-founder contends this will make room for hiring more developers within the ecosystem. She told CoinDesk TV's "First Mover" the FTX collapse took place at a time of "mass layoffs from really well-run companies," so that from a recruitment perspective "this is actually a pretty golden opportunity."
/jlne.ws/3VdYREF
Cramer Rosenthal McGlynn selects Linedata: adaptable technology and streamlined operations empower next generation of growth
Linedata
Linedata, (Euronext Paris: LIN), a global provider of asset management and credit technology data and services, announced today that Cramer Rosenthal McGlynn, LLC ("CRM"), a US based value equity manager serving institutions and individuals, chose Linedata to implement a highly adaptable operational model at CRM that positions it for growth, while at the same time keeping in place unique capabilities for the firm.
/jlne.ws/3BP9iHW
Musk Narrows Voting on Twitter Policy to Blue Members After Poll; Twitter boss has yet to address poll calling for his exit; Musk promised to submit major policy decisions to votes
Vlad Savov - Bloomberg
Twitter Inc. will restrict voting on major policy decisions to paying Twitter Blue subscribers, company owner Elon Musk said in one of his first tweets following a poll calling for him to step down. Responding to a Blue member going by the name Unfiltered Boss, Musk agreed with the suggestion that only subscribers should have a voice in future policy and said, "Twitter will make that change." A day earlier, the billionaire chief pledged to submit all future policy decisions to a vote and offered Twitter users a choice on leadership, asking them if he should step down.
/jlne.ws/3YNbCJs
Elon Musk Says 'No One Wants' Top Twitter Job, But Some People Raise Their Hands; Jason Calacanis volunteered himself and ran his own poll; CEO shifted executives around in the other companies he leads
Edward Ludlow - Bloomberg
Elon Musk said there is no one willing and capable of running Twitter Inc. But if he is good to his word and walks away from the top leadership position at the social media company he bought two months ago, a number of people are already raising their hands. Musk polled his following on Sunday night asking if he should step down, and the answer early Monday morning by about 58% of respondents was yes.
/jlne.ws/3BPYlpA
Twitter users vote to remove Elon Musk as chief executive; Owner of social media platform had said he would abide by result of poll
Hannah Murphy - Financial Times
Twitter users have voted for Elon Musk to step down as the social network's chief executive, adding to turmoil over the future of the San Francisco-based company. The billionaire entrepreneur, who bought Twitter for $44bn in October, launched a poll via the platform on Sunday asking whether he should remain at the helm, adding: "I will abide by the results of this poll."
/jlne.ws/3YFN1pF
UBS AM and JP Morgan complete first bilateral trade on FlexTRADER FI; FlexTrade said actionable liquidity on European credit is now available within its EMEA trading workflow on the FlexTRADER FI execution management system.
Annabel Smith - The Trade
UBS Asset Management and JP Morgan have executed the first EU bilateral trade on FlexTrade's fixed income execution management system, FlexTRADER FI (FlexFI). FlexTrade said the trade was made possible through JP Morgan's ability to provide its electronic liquidity directly into UBS AM's FlexFi solution.
/jlne.ws/3HOFbUM
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| Cybersecurity | | Top stories for cybersecurity | US Is Seizing 48 Websites in Sting of Cyberattack-for-Hire Services; Domains sold the ability to knock victims offline, US says; Six people charged by DOJ in connection with running the sites
William Turton - Bloomberg
The US seized dozens of internet domains and charged six people in a sting intended to bring down a network of cyberattack-for-hire services, the Department of Justice announced on Wednesday. In all, the US obtained a court order to seize 48 websites, and six people were criminally charged in relation to the takedowns, according to federal prosecutors. The FBI was in the process of seizing the websites, officials said Wednesday.
/jlne.ws/3HPoKaC
U.S. targeted adversary cyber infrastructure to safeguard midterm vote
Phil Stewart - Reuters
The U.S. military's Cyber Command hunted down foreign adversaries overseas ahead of this year's mid-term elections, taking down their infrastructure before they could strike, the head of U.S. Cyber Command said. U.S. Army General Paul Nakasone said the cyber effort to secure the vote began before the Nov. 8 vote and carried through until the elections were certified. "We did conduct operations persistently to make sure that our foreign adversaries couldn't utilize infrastructure to impact us," Nakasone, who is also the director of the U.S. National Security Agency, told reporters.
/jlne.ws/3PEMBvA
Russian Hackers Targeted Petroleum Refinery in NATO Country During Ukraine War
Ravie Lakshmanan - The Hacker News
The Russia-linked Gamaredon group attempted to unsuccessfully break into a large petroleum refining company within a NATO member state earlier this year amid the ongoing Russo-Ukrainian war. The attack, which took place on August 30, 2022, is just one of multiple attacks orchestrated by the advanced persistent threat (APT) that's attributed to Russia's Federal Security Service (FSB).
/jlne.ws/3BQQ5FQ
Google Takes Gmail Security to the Next Level with Client-Side Encryption
Ravie Lakshmanan - The Hacker News
Google on Friday announced that its client-side encryption for Gmail is in beta for Workspace and education customers as part of its efforts to secure emails sent using the web version of the platform. The development comes at a time when concerns about online privacy and data security are at an all-time high, making it a welcome change for users who value the protection of their personal data.
/jlne.ws/3PKy01N
Cybersecurity's top 3 opportunities for 2023
John McClurg - Security Magazine
"God grant me the serenity to accept the things I cannot change, courage to change the things I can, and wisdom to know the difference." The saying is printed on coffee mugs, T-shirts, and signs at craft stores. The likes of Yale University, the New York Times, and media around the world have explored its history and impact. It is a very concise piece of prose with which you may be familiar.
/jlne.ws/3jhzpkp
Nio Blackmailed for Millions in Bitcoin by Data-Stealing Hackers
Bloomberg News
Hackers have stolen Nio Inc. user and car-sales data and are now blackmailing the Chinese electric-vehicle maker. Nio received an email this month in which the sender demanded $2.25 million in Bitcoin in return for not releasing the data, the automaker said Tuesday. An internal investigation revealed that part of Nio's user and vehicle sales information prior to August 2021 had been compromised.
/jlne.ws/3j6jtRN
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| Cryptocurrencies | | Top stories for cryptocurrencies | Sam Bankman-Fried Opts for More Time in Bahamian Jail Rather Than U.S. Extradition
Kyle Barr - Gizmodo
Sam Bankman-Fried's eventual return to New York might not be the homecoming he wants, as he'll likely be quickly detained and arraigned before a tense bail hearing. On Monday, founder of defunct crypto exchange FTX Sam Bankman-Fried decided he would rather remain in the Bahamas than come back to the U.S. to face federal fraud charges.
/jlne.ws/3WmoPXA
FTX's Bankman-Fried to agree to U.S. extradition in about-face after hearing -source
Jared Higgs and Luc Cohen and Jack Queen - Reuters
Sam Bankman-Fried has decided to agree to be extradited to the United States to face fraud charges, a person familiar with the matter said on Monday, just hours after the FTX founder's lawyer told a Bahamas judge he was not ready to consent. The about-face paves the way for the 30-year-old cryptocurrency mogul to face charges in New York over accusations he stole billions from FTX customers to plug losses at Alameda Research, his hedge fund, before the exchange abruptly collapsed in November.
/jlne.ws/3G4TSSf
FTX's Bankman-Fried Gave Ex-Jane Street Traders Who Formed Modulo Capital $400M
Tracy Wang - CoinDesk
When a spreadsheet listing Sam Bankman-Fried's venture investments was published by the Financial Times earlier this month, a couple of lines stood out. They showed the former cryptocurrency kingmaker's hedge fund, Alameda Research, had invested a total of $400 million into a company called Modulo Capital. Though this amounted to one of Bankman-Fried's largest venture capital bets, Modulo's identity was a mystery, giving rise to plenty of speculation. Was it a Brazilian fund manager with a nearly identical name (besides an accent mark over the first letter O)?
/jlne.ws/3YyZOdF
Binance Losing Auditing Partner Mazars Leaves Crypto Questions Unanswered
Helene Braun - CoinDesk
In the aftermath of cryptocurrency exchange FTX's collapse last month, questions have swirled throughout the industry about whether other large players' finances can be trusted. With professional auditors now abruptly exiting the space, those questions may keep lingering. Binance, the largest crypto exchange by trading volume, sought to tamp down worries raised by rival FTX's rapid descent into bankruptcy court by announcing it would release proof-of-reserves data. While not conventional audits, such reports describe how much crypto an exchange is holding - an attempt to allay fears about the whereabouts of customers' money.
/jlne.ws/3V8aEEp
SBF Sent Back to Bahamian Jail After Catching Lawyer Off Guard With US Extradition Plan; FTX co-founder said he was ready to drop extradition fight; Plan appear back on track after wild Bahamas hearing on Monday
Katanga Johnson and Jim Wyss - Bloomberg
After hitting an abrupt and confusing snag in a Bahamas courtroom, Sam Bankman-Fried's preparations to be extradited to the US appear back on track. FTX co-founder Bankman-Fried said in court Monday that he was ready to waive his right to fight extradition to the US where he faces fraud charges over the collapse of the cryptocurrency exchange. However, his local lawyer, Jerone Roberts, said in the same hearing that he wasn't aware of the plan.
/jlne.ws/3HPoEQD
Crypto Is a Better Road Map for Trading: Aaron Brown
Bloomberg
Aaron Brown, a Bloomberg Opinion columnist and former managing director and head of financial market research at AQR Capital Management, says the Securities and Exchange Commission's 400-page proposal to re-engineer financial markets, adds more rules on top of an already complicated system. He speaks on "Bloomberg Markets."
/jlne.ws/3BMnsta
Jane Street Culture: A View Into SBF's Roots (Podcast); After the fall of FTX and its founder, here's a look back to where he started, and how a cautious beginning ended in such an unpredictably wild ride.
Philip Lagerkranser - Bloomberg
It's been just over a month since the digital-asset exchange FTX filed for bankruptcy. And it didn't take long for events to catch up with its co-founder Sam Bankman-Fried - the onetime crypto billionaire known to most people as SBF. Bankman-Fried has been arrested in the Bahamas and US authorities have unleashed a slew of charges against him, including defrauding customers who put money on FTX.
/jlne.ws/3PHcJ9t
Sam Bankman-Fried's Lawyers Hash Out His Transfer to U.S. After Confusion in Court
James Fanelli and Corinne Ramey - The Wall Street Journal
FTX founder Sam Bankman-Fried inched closer to being transferred into U.S. custody to face criminal charges related to the cryptocurrency exchange's collapse, after a chaotic court hearing here Monday in which his local lawyer appeared at odds with his U.S. legal team. Mr. Bankman-Fried has agreed to be extradited, according to a person familiar with the matter, and plans were being fleshed out by his legal team after the day's court proceedings. Mr. Bankman-Fried's lawyers hope to have a new hearing on the matter as early as Tuesday, the person said.
/jlne.ws/3v5LM5O
FTX Will Look to Retrieve Voluntary Payments From Third Parties, Possibly Including SBF's Political Donations; FTX said it had been "approached by a number of recipients of contributions or other payments" looking to return them what they had received from Bankman-Fried or other FTX executives.
Jamie Crawley - CoinDesk
Bankrupt crypto exchange FTX will attempt to recoup voluntary payments made to third parties prior to its collapse, pursuing them in court if necessary. These payments may include founder and former CEO Sam Bankman-Fried's political donations in recent years. FTX did not immediately respond to CoinDesk's request for clarity on this point.
/jlne.ws/3PE5Sxn
Genesis failure would land owner with $350mn payout to financier Todd Boehly; Digital Currency Group would be on the hook for outstanding loan if crypto lender goes bankrupt, say insiders
Nikou Asgari - Financial Times
Crypto conglomerate Digital Currency Group is attempting to raise capital and avoid the bankruptcy of its Genesis broking subsidiary in part to avert the immediate repayment of a loan to US financier Todd Boehly's investment house. Boehly, who recently bought Chelsea Football Club, led a debt raise for DCG through his investment group Eldridge in November last year, comprising of a $600mn loan from Eldridge and a group of other investors.
/jlne.ws/3FPzT98
Bitcoin Addresses Tied to Defunct Canadian Crypto Exchange QuadrigaCX Wake Up
Nikhilesh De - CoinDesk
More than 100 bitcoins tied to the defunct Canadian crypto exchange QuadrigaCX were transferred out of cold wallets thought to be beyond anyone's control over the weekend, after sitting dormant for more than three years. The company's bankruptcy trustee, Ernst and Young, did not initiate the transfers, CoinDesk has learned. QuadrigaCX went bankrupt in 2019 after the apparent death of founder and CEO Gerald Cotten. At the time of its collapse, Quadriga was believed to have owed thousands of customers nearly $200 million in various cryptocurrencies - a staggering failure for what was once Canada's largest crypto exchange.
/jlne.ws/3jlLLru
BlockFi Petitions Bankruptcy Court to Let Clients Withdraw Blocked Assets
Will McCurdy - CoinDesk
Bankrupt crypto lender BlockFi has petitioned the U.S. Bankruptcy Court to allow clients to withdraw cryptocurrencies that are held in their BlockFi Wallet Accounts. This request does not impact withdrawals or transfers from BlockFi Interest Accounts, which are set to remain paused at this time, according to the statement.
/jlne.ws/3YA8VL3
Bored Ape NFT-maker announces Daniel Alegre as new chief; Activision president to join Yuga Labs as it prepares to build 'Otherside' metaverse
Cristina Criddle - Financial Times
The start-up behind Bored Ape Yacht Club non-fungible tokens has named a new chief executive as it ramps up plans to build a "metaverse" despite the crypto slump biting sales of digital assets. Daniel Alegre, who announced on Friday he was stepping down as president and chief operating officer of video games giant Activision Blizzard, will join Yuga Labs in the first half of 2023. He replaces Nicole Muniz, who will become a partner and adviser.
/jlne.ws/3HPcDdG
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| Politics | | An overview of politics as it relates to the financial markets | Joe Biden made the oil trade of the year
Tim Fernholz - Quartz
It worked. Gas prices were a major story in 2022: Russia's invasion of Ukraine roiled energy markets and some predicted the US dollar might be subsumed by a new, commodity-backed trade currency. Instead, it appears the US government made the oil trade of the year: Releasing 180 million barrels of crude from the Strategic Petroleum Reserve between March and the end of this year in an effort to blunt the effect of rising prices, the US government appears to have made about $4 billion, as prices have fallen dramatically over the course of the year.
/jlne.ws/3HQ5rye
Here Are the Laws Trump Allegedly Broke - According to the Jan. 6 Committee; House committee referred Trump and others to DOJ for charges; Alleged crimes include obstruction, fraud and insurrection
Erik Larson - Bloomberg
The House committee investigating the Jan. 6 attack on the US Capitol by Donald Trump supporters voted unanimously to ask the Justice Department to prosecute the former president for alleged crimes - including inciting an insurrection. The committee's nine members agreed Monday that their 17-month probe found enough evidence to urge that Trump and others face four federal criminal charges linked to efforts to overturn the 2020 election, which Joe Biden won.
/jlne.ws/3HTtxrI
Trump Risks Ban From Elected Office With Insurrection Evidence; Jan. 6 committee urges DOJ to consider criminal charges; 14th Amendment challenge to Trump run likely faces legal fight
Zoe Tillman - Bloomberg
A special House committee's vote to refer former President Donald Trump for potential criminal charges in connection with the Jan. 6 attack on the US Capitol brings fresh attention to a Constitutional ban on insurrectionists holding office. Section 3 of the 14th Amendment states that no one can "hold any office, civil or military, under the United States, or under any State" if they took an oath to support the Constitution and then "engaged in insurrection or rebellion against the same."
/jlne.ws/3WadnhP
January 6 Capitol attack panel recommends criminal charges against Donald Trump
James Politi - Financial Times
The congressional committee probing last year's violent attack on the US Capitol has voted to recommend that the US Department of Justice pursue criminal charges against former president Donald Trump for his role in the failed insurrection. During its final public hearing on Monday, the bipartisan nine-member panel unanimously said Trump should be prosecuted for assisting the insurrection, obstructing an official government proceeding, conspiring to defraud the US and knowingly making false statements to authorities.
/jlne.ws/3G66OaF
Britain's broken egg industry shows the price of food inflation
James Davey - Reuters
In Britain, the damage wrought by rampant inflation can be seen in the fate of the humble egg. With war in Ukraine driving energy and chicken feed costs higher, farmers say what they get paid is no longer enough, upending the economics of a key food staple. Many of the country's supermarkets, including market leader Tesco and No. 3 Asda, have rationed sales, blaming the bout of bird flu that has ravaged flocks across Europe and the United States and, they say, led to a British shortage.
/jlne.ws/3PNosTN
King Charles III Is the New Face of U.K. Money; Pound notes with the new sovereign's image will begin appearing in 2024, though money with his mother's likeness will still be in circulation.
Emma Bubola - The New York Times
In recent months, as Britain has healed from mourning its queen, the beginning of a new reign has started to show in the country's daily life. England's World Cup team sang "God Save the King." For the first time in decades, a king welcomed a new prime minister. Now, as Britons prepare for the first Christmas without Queen Elizabeth II's traditional message, the Bank of England has announced another major change.
/jlne.ws/3BQxtpg
Hong Kong Plans More Covid Easing as Lee Heads to Xi Meeting; Easing will include rules on banquets, city's leader says; Lee will head to Beijing this week to report to Xi on Covid
Kari Soo Lindberg - Bloomberg
Hong Kong will further ease social distancing measures, including rules on banquets, ahead of a trip by the city's leader to Beijing. Details of the relaxation will be provided at a briefing by health officials at 3 p.m. local time on Tuesday. Chief Executive John Lee said at a press conference he will head to the capital for a duty visit from Wednesday to Saturday and will report the latest situation on Covid and the economy to President Xi Jinping.
/jlne.ws/3hHHaj5
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| Regulation & Enforcement | | Stories about regulation and the law. | UK's Financial Services and Markets Bill Should be Passed by Spring 2023, Treasury Says
Camomile Shumba - CoinDesk
The U.K.'s wide-ranging Financial Services and Markets Bill (FSMB), which could give regulators more power over crypto, should be passed into law by next spring, a Treasury spokesperson told CoinDesk via email. The FSMB has already been debated in the House of Commons and is set to have its second reading in Parliament's upper house, the House of Lords, by Jan. 10. It will be sent back to the House of Commons after that, where any amendments from the House of Lords will be considered. When both houses agree, the bill will be sent to King Charles III where it can be made an Act before taking effect.
/jlne.ws/3PFBL8M
'Financial Regulators Should Be Limited to Centralized Actors': Coinbase CEO
Sujith Somraaj - Decrypt
Smart contracts shouldn't be regulated the same as centralized custodians, argued the Coinbase chief. In a recent blog post, Coinbase CEO Brian Armstrong shared a "realistic blueprint" for regulating cryptocurrencies and restoring trust in the industry following the collapse of crypto exchange FTX.
/jlne.ws/3G3G7Dx
CFTC Staff Extends No-Action Letter Regarding Daily Reporting Requirements for Derivatives Clearing Organizations
CFTC
The Commodity Futures Trading Commission's Division of Clearing and Risk (DCR) announced today it is extending a no-action letter regarding daily reporting requirements applicable to registered derivatives clearing organizations (DCOs) in CFTC Regulation 39.19.
/jlne.ws/3YDqQ3C
SEC Awards $37 Million to Whistleblower Who Gave Key Information
Stephanie Stoughton - Bloomberg
The US Securities and Exchange Commission is awarding more than $37 million to a whistleblower whose information contributed to a successful SEC enforcement action. The SEC said the whistleblower was the initial source of a company's internal investigation, and the source for investigations by the commission and another agency. In line with the SEC's policy, the regulator didn't disclose details about the case.
/jlne.ws/3FEu5yV
SEC Awards More Than $37 Million to Whistleblower
SEC
The Securities and Exchange Commission today announced an award of more than $37 million to a whistleblower whose information led to a successful SEC enforcement action and a related action.
/jlne.ws/3BOMkAP
SEC Charges Honeywell with Bribery Schemes in Algeria and Brazil
SEC
The Securities and Exchange Commission today announced charges against Honeywell International Inc. for violations of the Foreign Corrupt Practices Act (FCPA) arising out of bribery schemes that took place in Brazil and Algeria. The company has agreed to pay more than $81 million to settle the SEC's charges.
/jlne.ws/3Wg4nYI
SEC Charges Undisclosed Control Person and His Alter-Ego Entity in Penny Stock Scheme
SEC
The Securities and Exchange Commission filed charges against Brian Kistler and New Opportunity Business Solutions, Inc. a/k/a NOBS in connection with a fraudulent scheme involving the securities of Williamsville Sears Management, Inc. ("Williamsville").
/jlne.ws/3Wwb0FX
Federal Court makes findings against social media 'finfluencer' Tyson Scholz
ASIC
The Federal Court has found social media 'finfluencer' Tyson Robert Scholz contravened s911A of the Corporations Act by carrying on a financial service business (between March 2020 and November 2021) without an Australian financial services licence.
/jlne.ws/3VdTPIr
ASIC provides legislative relief to facilitate employee share schemes
Australian Securities & Investments Commission
ASIC has made a legislative instrument that facilitates employee share schemes (ESS). The ESS provisions in Part 7.12 of the Corporations Act commenced on 1 October 2022 and ASIC's relief seeks to remove unintended technical issues that stakeholders said will cause difficulties in practice. This follows a consultation ASIC undertook earlier in the year.
/jlne.ws/3PCsSgl
Call for Public Comment on Proposed Partial Amendments to the Comprehensive Supervisory Guidelines for Financial Instruments Business Operators, etc. regarding ESG Investment Trusts
Financial Services Agency
The Financial Services Agency (FSA) has compiled and published the draft partial amendments to "the Comprehensive Supervisory Guidelines for Financial Instruments Business Operators, etc." as attached.
/jlne.ws/3W51J85
Court convicts Kenneth Goh Jia Poh for multiple offences under the Securities and Futures Act
Monetary Authority of Singapore
Mr Goh Jia Poh, Kenneth was today convicted and sentenced to 19 months' imprisonment and fined $355,604 for multiple offences relating to false trading, unauthorised use of trading accounts and fraudulently inducing others to deal in shares, under the Securities and Futures Act (SFA).
/jlne.ws/3PEEwr5
TSB fined £49mn over IT outage; Bank took 8 months to return to 'business as usual' after botched tech transfer, say regulators
Sarah Provan and Emma Dunkley - Financial Times
UK regulators have fined TSB £48.7mn for failures in risk management and governance after an IT outage that left 2mn customers locked out of their accounts. The Financial Conduct Authority and the Prudential Regulation Authority announced the fine on Tuesday over TSB's management of outsourcing risks relating to an IT revamp in 2018.
/jlne.ws/3HP5UR0
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Madrigal Stock Triples After Liver Disease Drug Succeeds in Trial; Shares soar by record 268% after late-stage drug study; Other companies developing drugs for same disease swing
Breanna Bradham - Bloomberg
Madrigal Pharmaceuticals Inc. shares surged 268%, adding about $2.9 billion to its market value, after a late-stage clinical trial of its drug candidate met the main goals in patients with a type of liver disease. The company's stock had its best day on record in the wake of the clinical trial outcome, and drove swings in the shares of other firms developing treatments for nonalcoholic steatohepatitis, the fatty liver disease known as NASH. A company developing a drug similar to Madrigal - Viking Therapeutics Inc. - jumped 74%
/jlne.ws/3vatnVb
Active Managers Will Outperform Indexes in 2023, Says Bank of America; Strategist says we're moving into a more rational environment; There are parts of market worth gaining exposure to, she says
Vildana Hajric and Geoffrey Morgan - Bloomberg
Active management will outperform indexing next year as the market moves into a more rational environment following the 2022 selloff, according to Bank of America strategist Savita Subramanian. "It is time to avoid being an indexer and get active," the bank's head of US equity and quantitative strategy told Bloomberg TV and Radio Monday, citing valuation dispersion being at near historical highs. "What that means is there's a lot of alpha to be made by just kind of playing mean reversion of valuation."
/jlne.ws/3G8cmSc
Billionaire John Fredriksen's Oil Trader Alta Is Winding Down; Company has been liquidating positions, people familiar say; Volatility in oil markets has surged this year on Ukraine war
Alex Longley and Devika Krishna Kumar - Bloomberg
Billionaire John Fredriksen's boutique oil trading business is being wound down, people familiar with the matter said. Alta Trading, which is effectively owned by the Norway-born tycoon, has been liquidating positions since the week before last, the people said, asking not to be named since the matter is confidential. The firm was previously called Arcadia Petroleum Ltd.
/jlne.ws/3v5GaIy
This 26-year-old FTX customer lost access to $14,000 when Sam Bankman-Fried's exchange collapsed. Now he plans to keep his money in stocks.
Phil Rosen - Business Insider
On November 8, when Daniil Pemberton saw headlines on the collapse of Sam Bankman-Fried's crypto exchange, he tried to transfer funds out of his FTX account. He soon realized that wouldn't be possible. Based in the Netherlands, the 26-year-old graduate student said he had 1.25 ether and 0.64 bitcoin saved on his account, which at the time were worth about $13,825 all together.
/jlne.ws/3W43fr3
Turnover surges as funds rush to exit private equity stakes
Rae Wee - Reuters
Private equity holdings are being sold at a record clip in an opaque secondary market, investors say, as asset managers cash out to cover losses elsewhere and rebalance portfolios. The wave of selling is the latest of several signs of stress in private markets and is another signal of investors starting to fall out of love with "alternative assets" that only recently were drawing in cash.
/jlne.ws/3PErf1E
Private equity's debt tower is teetering; What was once a simple story of buy, fix, sell is more complicated, after years of cheap money and keen investment
Helen Thomas - Financial Times
Once upon a time, private equity was - relatively - simple. Buy a company, oversee a turnround tricky to do in the public markets, and then sell at a profit. Even the cynical version of the above isn't terribly complicated: buy a company, load up with debt, cut costs, shut off investment, hope for a fair wind on valuations and sell before the rot sets in.
/jlne.ws/3jjNtKb
Stock Picking Makes a Comeback in Market Turbulence; Inflation, rising interest rates and recession fears derail easy returns from passive investing
Hardika Singh - The Wall Street Journal
It's finally a good time to be a stock picker. About 55% of actively managed large-cap mutual funds are on pace to beat their benchmarks this year, according to an analysis by Goldman Sachs Group Inc. GS -0.50%decrease; red down pointing triangle through Nov. 16. That would mark the largest share since 2007, when 71% of funds did so.
/jlne.ws/3v5yar9
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Nearly Every Country Signs On to a Sweeping Deal to Protect Nature; Roughly 190 nations, aiming to halt a dangerous decline in biodiversity, agreed to preserve 30 percent of the planet's land and seas. The United States is not officially a participant.
Catrin Einhorn - New York Times
Roughly 190 countries early on Monday approved a sweeping United Nations agreement to protect 30 percent of the planet's land and oceans by 2030 and to take a slew of other measures against biodiversity loss, a mounting under-the-radar crisis that, if left unchecked, jeopardizes the planet's food and water supplies as well as the existence of untold species around the world. The agreement comes as biodiversity is declining worldwide at rates never seen before in human history. Researchers have projected that a million plants and animals are at risk of extinction, many within decades. The last extinction event of that magnitude was the one that killed off the dinosaurs 65 million years ago.
/jlne.ws/3YCaB6Y
Cop15: key points of the nature deal at a glance; Main points of the historic agreement signed in Montreal to halt the destruction of Earth's ecosystems; Cop15: historic deal struck to halt biodiversity loss by 2030.
Patrick Greenfield and Phoebe Weston - The Guardian
The Kunming-Montreal pact is a series of agreements that range from scientific cooperation to human-wildlife conflict. Here are the main points at a glance in the once-in-a-decade deal to halt the destruction of Earth's ecosystems.
/jlne.ws/3Vcaz2L
'Paris Agreement for nature' raises biodiversity hopes and doubts; Landmark UN pact aims to arrest extinctions by conserving 30% of land and oceans by 2030
Aime Williams - Financial Times
Scientists and conservationists welcomed a landmark UN agreement this week to protect roughly a third of the planet's lands and seas by 2030, but warned much remained to be done to thwart the catastrophic demise of the natural world.
/jlne.ws/3G8kLEQ
UN biodiversity summit ends with deal to prevent extinctions
Chris Harland-Dunaway - The World
The UN Biodiversity Conference, or COP15, concluded with a deal to mitigate wildlife extinctions, in part by setting aside more land and sea for preservation than ever before. The World's Marco Werman talks to Claire Shine, Director and CEO of Cambridge Institute of Sustainability Leadership, about what happened at the conference and what the new deal means.
/jlne.ws/3j6ju8j
CDP's comment on COP15 final agreement
CDP
Responding to the final agreement reached at COP15, Sue Armstrong Brown, Global Director for Environmental Standards and Thought Leadership at CDP, said: "CDP welcomes the agreement reached at COP15, which commits countries to protect 30 per cent of land and sea, cut, phase out and reform environmentally harmful subsidies, and increase finance flows for protecting and restoring nature. Governments must now ensure the Global Biodiversity Framework is a success by implementing new and strengthening current policies that will ensure they deliver against the targets outlined in the framework. The agreement includes a requirement to ensure that all large companies assess and disclose their risks, impacts and dependencies on nature by 2030, under Target 15. This target received unprecedented support from corporate and financial leaders in recognition of the risks involved in uncontrolled exposure to nature degradation.
/jlne.ws/3VeY1HA
Japan Finalises Code of Conduct for ESG Data Providers; FSA has called on ESG ratings and data providers to endorse voluntary code.
Regulation Asia
Japan's Financial Services Agency (FSA) has finalised a new code of conduct for ESG ratings and data providers. The code of conduct was proposed in July, following a November 2021 report from International Organization of Securities Commissions (IOSCO) which called for tighter oversight of ESG ratings and data product providers. The draft code was based on recommendations from an expert panel on sustainable finance established by the Japanese regulator in February. The FSA said it received 209 comments on the draft code of conduct from 45 individuals and entities. The FSA has published a response paper, and has finalised a code of conduct which is designed to be a voluntary code on a "comply or explain" basis.
/jlne.ws/3FLz2Ge
JPMorgan AM launches active sustainable ETFs in Australia; Proprietary natural language processing tool ThemeBot will review nearly 13,000 stocks globally
Sandra Heistruvers - Financial Times
JPMorgan Asset Management has expanded its exchange traded funds offering for Australian investors with the launch of two actively managed, sustainability-focused strategies.
/jlne.ws/3HR55Ya
Fund Bosses Vent 'Mass Frustration' as ESG Tumult Grips Industry; Asset managers point to regulatory confusion after a $125 billion hole is blasted through the top of the ESG market.
Greg Ritchie, Steven Arons, and Natasha White - Bloomberg
After a turbulent few weeks during which some of the world's biggest asset managers removed coveted ESG tags from huge chunks of their business, industry bosses have had enough. Managers running the funds affected are now talking openly of the "chaos" they say has hit the investment management industry. The chief cause, they say, is a regulatory framework whose confusing rollout just blasted a $125 billion hole through the very top of the ESG market.
/jlne.ws/3hzjfT3
Wind Power Giant Will Make Green Shipping Fuel at Big Plant in Sweden; Orsted to develop site in Sweden to produce e-methanol as shipping sector looks to cut emissions in the coming years
Will Mathis - Bloomberg
Danish renewable energy developer Orsted A/S will spend more than $145 million to develop a Swedish facility to produce low-carbon shipping fuel. The site will be the largest of its kind in Europe, serving as a potential test case for the nascent market to cut emissions from the shipping industry. It's a prospect that got a significant boost after the European Union agreed over the weekend to expand its carbon market to include emissions from the industry.
/jlne.ws/3PJYuRg
Big US Banks Fall Short on Promises to Create Black Homeowners
Shawn Donnan, Ann Choi and Christopher Cannon - Bloomberg
The 2900 block of Walbrook Avenue in Baltimore is a study in contrasts. Row houses with tidy yards stand next to abandoned brick shells and rundown rental buildings. Residents describe a dwindling community of working-class Black homeowners with ties going back generations. Property records tell another story, one about America's racial wealth gap and the banks that walked away.
/jlne.ws/3WdL6XN
BlackRock plans no big changes to ESG stance despite backlash; Makes 'few changes' to stewardship priorities; Sees no major changes in voting at 2023 AGMs; Encourages more disclosure on nature-related risks.
Simon Jessop - Reuters
BlackRock (BLK.N) plans no major changes to the way it engages with companies and votes on environmental and social issues in the year ahead, despite a backlash against its stance on climate change from some U.S. Republican politicians. The world's biggest asset manager, with oversees around $8 trillion for investors, has been challenged by some Republican lawmakers as it pushes companies to make changes as part of a global transition to a low-carbon economy.
/jlne.ws/3HOrdSQ
Climate Change Gains Importance In ESG Strategies, US SIF Says
Karen DeMasters - Financial Advisor
Climate change is gaining in importance among financial professionals using ESG strategies to make their investment decisions, according to US SIF, the Forum for Sustainable and Responsible Investments. The organization recently tallied the assets invested by money managers and institutional investors using ESG guidelines, as well as those that filed shareholder resolutions about ESG issues, and found most assets were invested to fight climate change. US SIF published these findings in a recent study, called the "2022 Report On U.S. Sustainable Investing Trends," and announced the results during a webinar last week.
/jlne.ws/3PEs5vk
Fracking Waste Gets a Second Look to Ease Looming West Texas Water Shortage; Aquifers beneath the Permian Basin are slowly running out. Recycling "produced water" should help to slow the decline.
Dylan Baddour - Inside Climate News
Fracked wells in West Texas don't just produce petroleum. Much more than anything else, they spit up salty, mucky water. Typically, companies have discarded that fluid, hundreds of millions of gallons per day, by injecting it back underground, occasionally causing small earthquakes. But as water becomes more scarce, they're beginning to reconsider.
/jlne.ws/3G4uNqO
Their Lives Were Ruined by Oil Pollution, and a Court Awarded Them $9.5 Billion. But Ecuadorians Have Yet to See a Penny From Chevron; One of the victims says "nobody listens to us" while the spotlight has shifted to his American lawyer, whom the oil giant has pursued in U.S. legal proceedings.
Katie Surma - Inside Climate News
Steven Donziger is back in his airy mid-century modern apartment on the Upper West Side of Manhattan, engaged over Zoom on a marketing call with a representative of the online publishing platform Substack. Back and forth, they wrestle with a complicated question-who is Steven Donziger-and quickly realize there is no easy answer. Donziger is a crusading lawyer who led a team that won one of the world's largest pollution judgments against Chevron on behalf of Indigenous peoples and other residents of the Ecuadorian Amazon in 2011.
/jlne.ws/3PEc7RP
U.S. poised to become net exporter of crude oil in 2023
Arathy Somasekhar - Reuters
The United States has become a global crude oil exporting power over the last few years, but exports have not exceeded its imports since World War II. That could change next year.
/jlne.ws/3hIJN4k
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Citigroup's $900 Million Revlon Blunder Ends With a Dismissal After Bank's Victory
Chris Dolmetsch, Katherine Doherty and Jenny Surane - Bloomberg
A hard-fought battle between Citigroup Inc. and creditors of Revlon Inc. over an epic blunder in which the bank accidentally sent the lenders almost a billion dollars was finally capped with a legal pronouncement: Case dismissed. The order of dismissal came Monday after the last holdouts among the lenders agreed to return their share of $504 million the creditors still had following Citigroup's victory in court. That sum was part of an original errant payment of more than $900 million, some of which had already been voluntarily returned to the bank by other recipients.
/jlne.ws/3YAyDPs
Schwab Takes Minority Stake in Dynasty Financial Partners
WealthManagement.com
Charles Schwab and private equity firm Abry Partners are taking a minority stake in independent RIA network Dynasty Financial Partners, according to a company announcement. As a result of the cash infusion, Dynasty also said it will file a request to withdraw its Registration Statement Form S-1, initially filed with the SEC at the beginning of this year, ending plans to pursue an initial public offering.
/jlne.ws/3WbsbwZ
Carlyle's Search for New CEO Is Seen Stretching Into Next Year; Credit head Mark Jenkins among those on short list for the job; Board seeks to avoid yet another botched leadership transition
Dawn Lim and Heather Perlberg - Bloomberg
Carlyle Group Inc.'s search for a new chief executive officer is expected to extend into the new year, dashing hopes among investors and insiders for a swift resolution to its leadership limbo. The board has a list of candidates that includes credit head Mark Jenkins, 55, and private equity investment chief Pete Clare, 57, though it's debating whether the job should go to someone from the outside, according to people familiar with the deliberations. It was still interviewing external prospects at the end of last month.
/jlne.ws/3HLCNyd
Credit Suisse Names Former UBS Banker Moser as Group Treasurer
Myriam Balezou and Marion Halftermeyer - Bloomberg
Credit Suisse Group AG hired former UBS Group AG banker Claude Moser to become group treasurer, reporting to Chief Financial Officer Dixit Joshi. Moser will start his new role on Dec 21 and will be based in Switzerland, according to an internal memo seen by Bloomberg and confirmed by a spokesperson for the bank. Moser succeeds Gian Marco Martino, who will become deputy group treasurer.
/jlne.ws/3FJfrXm
Credit Suisse CLO Bankers Leave for US Investment Bank Baird; CLO trader Daniel Bates, exec. director James Gray are moving; Switch to Baird follows recent move by MD Jeremy Duksin
Adeola Eribake - Bloomberg
Two more credit bankers have left Credit Suisse Group AG in the last two weeks and are both set to join Robert W Baird & Co Inc., according to a person familiar with the matter. James Gray, an executive director responsible for structured finance sales, and Daniel Bates, a trader in collateralized loan obligations, are joining Baird's fixed income capital markets group, said the person, who asked not to be named as the information was private.
/jlne.ws/3v2E7VJ
Wells Fargo to Pay $3.7 Billion for Mistreating Customers
Hannah Levitt - Bloomberg
Wells Fargo & Co. agreed to a $3.7 billion settlement with the Consumer Financial Protection Bureau to settle a variety of allegations of mistreating customers, including a $1.7 billion fine that's the biggest in CFPB history. The agreement includes more than $2 billion in "redress to consumers," the CFPB said in a statement Tuesday that cited "widespread mismanagement" of auto loans, mortgages and deposit accounts.
/jlne.ws/3VbItEH
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| Wellness Exchange | | An Exchange of Health and Wellness Information | New models predict at least 1 million deaths in China amid covid surge
Sammy Westfall - The Washington Post
A fast-spreading covid-19 outbreak in China has researchers predicting a surge in virus-related deaths next year, with several analyses forecasting more than 1 million fatalities in a country that until now has largely kept the coronavirus in check. Earlier this month, China dramatically loosened its strict "zero covid" policies following a wave of protests in towns and cities where residents were fed up with years of stringent lockdowns, mass testing and centralized quarantines. The demonstrations marked the most significant show of public dissent in China in years.
/jlne.ws/3G6t04A
China's Covid-19 Outbreak Has US Worried About New Variants; Wave of cases has grown following easing of restrictions; China's U-turn on Covid-19 followed protests in late November
Iain Marlow - Bloomberg
The US is concerned China's runaway Covid-19 outbreak might spawn new mutations of the virus, as the world's most populous country continues to grapple with the impact of loosening "Covid Zero" protocols that had kept the pandemic at bay. "When it comes to the current outbreak in China, we want to see this addressed," State Department spokesman Ned Price said in a briefing on Monday. "We know that anytime the virus is spreading in the wild that it has the potential to mutate and to pose a threat to people everywhere."
/jlne.ws/3FzkOs0
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Brazil Corn Exports Set to Surge Just as World Needs Them Most; Brazil's exports fill in gaps as US, Ukrainian exports snarled; Higher costs and strong dollar are reducing US competitiveness
Tatiana Freitas and Tarso Veloso Ribeiro - Bloomberg
Brazil's bumper corn harvest couldn't have come at a better time for global food supplies as calamities from war to drought stymie exports from the world's biggest producers. Corn exports from South American's biggest nation are on pace to more than double this year to a record 44 million tons, according to Brazil's grain exporter group Anec. Shipments have accelerated since October, when low-water levels in the Mississippi River snarled US exports.
/jlne.ws/3PFxxxS
The Golden Age of Cocaine Is Happening Right Now; The global fallout is showing up everywhere from the warehouses of Antwerp to coup plots in West Africa and bringing violence, corruption and big profits.
Matthew Bristow - Bloomberg
The biggest cocaine boom in history has its origins outside towns like La Dorada, Colombia. Here, a few miles down a rutted track through the Amazon, cattle ranches and fish farms give way to endless fields of coca, the pale green shrub used for making the drug. Apart from a few schoolteachers and occasional raids by the armed forces, the Colombian state barely exists beyond this point. To travel here, outsiders need permission from a much-feared drug cartel known as the Comandos de la Frontera, whose henchmen in military green T-shirts patrol the lanes in trucks and on motorbikes.
/jlne.ws/3BP2Oss
Oman Wealth Fund Expects $1.3 Billion From Divestments Next Year
Shaji Mathew - Bloomberg
The Oman Investment Authority plans to raise more than $1.3 billion by exiting its investments in eight sectors next year as Gulf nations increasingly lean on state assets to bolster their finances.
/jlne.ws/3WeFbSl
Can the LaSalle Street financial district be transformed into an affordable place to live?
Judith Crown - Crain's Chicago Business
LaSalle Street traditionally has been the center of Chicago's wealth-the historic home to major banks, financial firms and the Federal Reserve Bank of Chicago, many housed in architectural masterpieces such as The Rookery. If the street becomes a hub for affordable housing, with health care workers, hotel clerks and garage attendants joining the software engineers and financial analysts living downtown, it will be a 180-degree turn.
/jlne.ws/3v5hH6i
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| Miscellaneous | | Stories that don't quite fit under the other sections | Tech Wreck of 2022 Decimates Billionaires' War Chests for Charity; Some of the biggest US foundations held concentrated positions that have plunged even more than the stock market, at a time when nonprofits are concerned giving will slow.
Ben Steverman - Bloomberg
When Elon Musk transferred $5.7 billion of Tesla shares into his personal foundation at the end of 2021, he reduced a massive tax bill while also giving himself philanthropic firepower - in the form of a $9.4 billion endowment - that only a handful of billionaires possess. The often-boisterous owner of Twitter has shed little insight into his giving since then. But one thing seems clear: With Tesla Inc. stock tumbling more than 57% this year, enough to drop Musk from his spot as the world's richest person, his foundation is likely to shrink drastically in size and influence in 2023.
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