| October 02, 2024 | "Irreverent, but never irrelevant" | | |  | John Lothian
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Hits & Takes
John Lothian & JLN Staff
Clifford Asness and John Liew, co-founders of AQR Capital Management and University of Chicago alumni, have donated $60 million to the university to support the master's in finance program at the Booth School of Business, where both earned MBAs and Ph.D. degrees, Bloomberg reported. Their gift comes just days after the university received a separate $100 million donation. The newly renamed finance program aims to expand opportunities for students to pursue degrees at earlier stages in their academic careers. This donation highlights the university's strong business scholarship, with Booth School faculty members having won 10 Nobel Prizes since 1982.
CME Group reported that it achieved record average daily volume (ADV) for both Q3 and September 2024, fueled by growth across all asset classes. In Q3, ADV rose to 28.3 million contracts, marking a 27% year-over-year increase, while September reached 28.4 million contracts, up 25%. The surge was driven by record volumes in interest rate products, particularly in U.S. Treasury and SOFR futures. Equity index, energy, agricultural, foreign exchange, and metals markets also saw significant growth. International ADV set new records, especially in the EMEA and Asia regions. Micro products played a key role in boosting overall volumes, particularly in equity and energy markets. Highlights include a record Q3 Interest Rate ADV of 14.9 million contracts, a 21% increase in energy ADV, a 28% rise in agricultural ADV, and a 38% increase in metals ADV. Additionally, international markets contributed to the growth, with a record international ADV of 8.4 million contracts in Q3.
The Commodity Futures Trading Commission (CFTC) has fined two swap execution facilities (SEFs), BGC Derivative Markets, L.P. and GFI Swaps Exchange, LLC, a total of $1.3 million for failing to accurately report swap transaction data and violating SEF Core Principles. BGC SEF was also penalized for breaching a prior CFTC order. Both firms admitted to the violations and are required to cease further infractions, comply with remediation measures, and submit compliance reports. BGC SEF will pay $750,000 and retain a compliance consultant, and GFI SEF will pay $550,000.
Speaking of Cantor Fitzgerald related firms, FMX Futures Exchange is starting to see some volume. Yesterday volume was 162 SOFR contracts and open interest was 146 contracts. You can see the Daily Trade Report HERE.
There is a CFTC case against a recidivist, Michael Frederick Staryk, who twice has been issued cease and desist orders from the CFTC and was permanently banned from trading on any contract markets. In this case, Staryk raised $600k for commodity options trading, his favorite, but then did not trade on any exchange. He got that part right and wrong at the same time.
One of my favorite parts of the story is the quote from his testimony in the 2004 case that banned him from trading, which was at the top of the Overview of the CFTC Initial Decision to Remand. Staryk said:
"I'm not like a lot of brokers that have to go out and cold call and knock on doors where maybe some of these accusations might be more valid. I have a busy group of customers, I try to do the best for them, and I certainly wouldn't be intending to go on a nationwide rampage, as I think [the Initial Decision] allude[s] that I'm on a campaign as an individual to defraud the population of the United States." My other favorite part of this story is that Staryk was dinged by the NFA in 2000 with a Business Conduct Committee complaint when he served as head of compliance at Comwell Financial Services, Inc. In his answer to the BCC he told them he had no responsibility for supervising the branch offices or sales force. Of course, he was in this job after already having his registration revoked and being banned from trading permanently.
Many times when markets plunge suddenly it can have a cascading effect on other markets, as traders need to free up capital to meet margin calls or reallocate capital. That is fear at work. Right now you have the potential for the opposite effect because of greed and the sharp rise in the Chinese markets driven by government intervention. Will traders liquidate lesser performing positions in order to reallocate capital to Chinese stocks? Everyone loves a bull market.
The Lex column in the Financial Times behind the premium pay wall is titled "Election betting looks more like gambling than hedging" with the subheadline "There is a steady drumbeat of clamouring from those who want to be able to put money on any uncertain event."
Tom Crane is starting a new position as director - agricultural products at CME Group, he shared on LinkedIn. He was promoted from manager of agricultural products at the CME.
There is a reason I have continued to include news from the Ukraine invasion and the Israel Hamas conflict in JLN and near the top. At any time, they could flash into a much larger conflict. There is a difference between an attack by a non-state actor and an attack by another country. Iran sending 200 missiles towards Israel changes the rules of the game and raises the stakes, to put it in sports language.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
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Our most read stories from our previous edition of JLN Options were:
- Options Discovery Episode 34: Retail Options Trend from John Lothian News.
- India tightens derivatives trading rules after retail options frenzy from the Financial Times.
- Stock Market Is "On Edge" as Middle East Tensions Jolts Traders from Bloomberg. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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 Open Outcry trading - Yes, it still exists: Futures Discovery EP 13 JohnLothianNews.com In the captivating world of futures trading, open outcry stands as a testament to tradition, even in an era dominated by electronic trading. As we explore this unique method of trading, we uncover the reasons behind its persistence and the vibrant community that thrives within the trading pits. Watch the video »  Piebe Teeboom - FIA European Principal Traders Association Watch Video »
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Justice Department launches first federal review of 1921 Tulsa race massacre
Jasper Ward - Reuters
The U.S. Department of Justice has launched a review and evaluation of the 1921 race massacre in Tulsa, Oklahoma, Assistant Attorney General Kristen Clarke said. The massacre started on May 31, 1921, when white attackers killed as many as 300 people, most of them Black, in Tulsa's prosperous Greenwood neighborhood, which had gained the nickname "Black Wall Street." In announcing the review on Monday, Clarke said the department aims to have it finalized by the end of the year.
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***** It is about D*MN TIME.~JJL
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The Hurricane That Threatens to Sink Asheville's Feel-Good Success; The North Carolina mountain mecca's economy was thriving until Helene hit. Residents are left wondering how they can rebuild.
Rachel Wolfe and Valerie Bauerlein - The Wall Street Journal
This city has been booming for a decade, drawing new residents with its beautiful views, artsy vibe and mild weather. The pandemic brought new possibilities for remote work and supercharged population growth. Craft breweries, vintage stores and other small businesses flourished, adding to Asheville's appeal. Now another unexpected phenomenon has thrown off its status as one of America's most desirable mountain meccas. Floodwaters and heavy wind from Hurricane Helene destroyed the arts district, decimated historic Biltmore Village and trapped some people, including retirees, in their own homes. After nearly a week, there is still no running water, scant power and spotty cell service. Residents are left wondering whether the local economy can rebuild and continue to thrive. Almost half of small businesses never reopen after a disaster, according to the Federal Emergency Management Agency.
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****** I am glad I was able to see Asheville during the OCC conference earlier this year before this horrible hurricane.~JJL
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The Less-Efficient Market Hypothesis; 50th Anniversary Issue of The Journal of Portfolio Management, Forthcoming
Clifford S. Asness - AQR Capital Management, LLC
Abstract: Market efficiency is a central issue in asset pricing and investment management, but while the level of efficiency is often debated, changes in that level are relatively absent from the discussion. I argue that over the past 30+ years markets have become less informationally efficient in the relative pricing of common stocks, particularly over medium horizons. I offer three hypotheses for why this has occurred, arguing that technologies such as social media are likely the biggest culprit. Looking ahead, investors willing to take the other side of these inefficiencies should rationally be rewarded with higher expected returns, but also greater risks. I conclude with some ideas to make rational, diversifying strategies easier to stick with amid a less-efficient market.
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***** In honor of Cliff Asness and John Liew giving $60 million to the University of Chicago, please read the latest commentary from Asness.~JJL
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The Giant Trump-Era Gift Tax Exemption Expires Next Year. Why Private Fund Managers Better Take Note.
Karen Hube - Barron's
Private equity and venture capital managers must take extra care as they firm up gifting strategies before the current lofty gift and estate tax exemption expires next year. There are special rules for how carried interest can be gifted, and a mistake could have "disastrous consequences," says Connie Liu, a tax partner at Armanino, an accounting firm based in Philadelphia. "It would mean a deemed gift of all your interest." This could mean you end up giving far more than you planned and that your gift-if it exceeds the gift tax exemption-results in a large unplanned tax liability. The gift and estate tax exemption of US$13.6 million per person and US$27.2 million per couple is scheduled to expire at the end of 2025. It will then return to its pre-2018 level plus inflation, which would be about US$7 million per person and US$14 million per couple.
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****** You always want to give more than you intended. Give till it hurts, then give some more.~JJL
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Tuesday's Top Three
Our top story Tuesday was EXCLUSIVE: RJ O'Brien president Dan Staniford leaves Chicago group, from FOW. Second was Marex eyes environmental market after acquiring Spanish broker Dropet, also from FOW. Third was New titans of Wall Street: How trading firms stole a march on big banks, from the Financial Times, which was our No. 2 story on Tuesday.
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| Lead Stories | AQR's Asness, Liew Donate $60 Million to University of Chicago
Janet Lorin - Bloomberg
Clifford Asness and John Liew, hedge fund managers with five University of Chicago degrees between them, are giving $60 million to their alma mater, days after the school announced a separate $100 million gift. The co-founders of quant firm AQR Capital Management made the donation to support a master's in finance program at the Booth School of Business, where both earned MBAs, the school said Tuesday. They also earned Ph.D degrees at the university.
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Hong Kong Executive Inherits $1.5 Billion Stake in SenseTime; Yang inherited the shares from her late husband Tang; Tang was one of the co-founders of the Chinese AI giant
Pui Gwen Yeung - Bloomberg
An executive at Hong Kong's stock exchange has inherited a stake worth more than $1 billion in SenseTime Group Inc. from her late husband, making her the largest shareholder in the Chinese artificial intelligence giant. Yang Qiumei, managing director and adviser to the chief executive officer at Hong Kong Exchanges & Clearing Ltd., received a 20% shareholding, according to a regulatory filing in August. The stake is now worth $1.5 billion. Tang Xiao'ou, her late husband and one of the company's co-founders, died in December of an undisclosed illness.
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A Bitter Feud Risks Ripping Apart an $11 Billion Metals Empire; Korea Zinc schism involves two of country's richest families; Company, affiliates control 12% of global zinc output ex-China
Heesu Lee and Archie Hunter - Bloomberg
A spat between two wealthy South Korean families over the future of an $11 billion zinc empire has descended into a bitter battle for control that could hamper efforts to diversify the global supply of energy-transition metals. The power struggle over Korea Zinc Co. - founded by two friends who fled North Korea, and still held by the Choi and the Chang families - has captured headlines. Even in a country of large conglomerates, where inheritance fights are common, few involve private equity backers stepping into the ring to stand against wealthy establishment names.
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Rescuers scour North Carolina mountains for survivors cut off by Hurricane Helene
Bernie Woodall and Karl Plume - Reuters
Search-and-rescue teams who have already saved hundreds of people scoured the mountains of western North Carolina for more survivors on Tuesday, working amid washed-out roads, smashed bridges and felled power lines following Hurricane Helene. The storm has killed at least 162 people in North Carolina, South Carolina, Georgia, Florida, Tennessee and Virginia, CNN reported, citing state and local officials, and the death toll is expected to rise once rescue teams reach isolated towns and telecommunications are restored.
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How Hurricane Helene Jolted the Global Chip Industry
Amy Thomson - Bloomberg
Hurricane Helene caused havoc in North Carolina, killing dozens of people and stranding others, washing away homes, businesses and crops and knocking out electricity and water. It also shut two mines that together produce about four-fifths of the world's highest-quality quartz - a crucial ingredient in the production of semiconductors. Chipmakers as far away as east Asia were hurrying to assess the impact of the mine closures in the stricken town of Spruce Pine. The incident underscores how small corners of today's globalized supply chains can contain hidden vulnerabilities.
/jlne.ws/3XRsPBO
LPL Fires CEO Over Alleged Misconduct. The Stock Is Falling.
Andrew Welsch - Barron's
LPL Financial 's board of directors said late Tuesday that it had terminated CEO and President Dan Arnold for making statements to employees that violated the company's code of conduct. The board said it terminated Arnold for cause on the recommendation of a special committee of directors in the course of an investigation by an outside law firm. The board appointed Rich Steinmeier, the company's chief growth officer, as interim CEO, effective immediately.
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US Treasury Calls for Transparency on China's Currency Swaps
Viktoria Dendrinou - Bloomberg
A senior US Treasury official called out China for a lack of transparency with its foreign-exchange swap lines, and urged the International Monetary Fund to be wary of simply including them in its calculations of official reserves for developing nations. The remarks Tuesday by Brent Neiman, the deputy undersecretary for international finance at the Treasury Department, follow recent bilateral engagement by the US with China with regard to the People's Bank of China swap lines.
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New Thai Bourse Chief Vows Steps to Restore Investor Confidence; Asadej plans to synchronize measures to bolster capital market; Former Deloitte executive sees brighter prospects for stocks
Anuchit Nguyen - Bloomberg
Thai stock exchange's new chief plans to prioritize restoring investor confidence in the nation's capital market that's been dented by a number of corporate scandals, concerns over illegal short selling and a spell of political turmoil. Asadej Kongsiri, a former Deloitte executive who took over as the president of Stock Exchange of Thailand last month, said the bourse has already taken a number of measures in recent months to address investor concerns, and he will now focus on speedier implementation.
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Saudi Minister Warns of $50 Oil as OPEC+ Members Flout Production Curbs; Kingdom called out members for overproducing, in what was seen as a veiled threat of a price war
Benoit Faucon, Summer Said and Anna Hirtenstein - The Wall Street Journal
The Saudi oil minister has said that prices could drop to as low as $50 per barrel if so-called cheaters within OPEC+ don't stick to agreed-upon production limits, according to delegates in the cartel. The statements were interpreted by other producers as a veiled threat from the kingdom that it is willing to launch a price war to keep its market share if other countries don't abide by the group's agreements, they said.
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JPMorgan Plans to Open Around 100 New Branches in Low-Income Areas; Bank to expand branches in rural and urban neighborhoods, offering alternative to check cashing, payday lending
Alexander Saeedy - The Wall Street Journal
Jamie Dimon has a plan to help some of the poorest people in America: build more Chase branches in their towns and cities. JPMorgan Chase is working on opening nearly 100 new branches in low-income areas around the country, including America's inner cities and rural towns where banks have been shrinking their footprint for years.
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He Stole $22 Million to Fund His Gambling Addiction. Now, He's Suing FanDuel; Former Jacksonville Jaguars employee who embezzled from team to fund fantasy-sports habit alleges betting company manipulated him
Katherine Sayre - The Wall Street Journal
A former Jacksonville Jaguars employee who embezzled more than $22 million from the team is suing FanDuel, alleging that the betting company fueled his fantasy-sports spending and ignored his gambling addiction. Amit Patel, who is serving a six-and-a-half-month federal prison term after pleading guilty to stealing money from the team, claimed in a lawsuit filed Tuesday that a FanDuel VIP host showered him with more than $1 million in betting credits, all-expenses-paid trips and gifts to prey on him. He is seeking $250 million in damages.
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Texas Stock Exchange moves closer to launch with leadership team, board
Laura Matthews and Suzanne McGee - Reuters
The Texas Stock Exchange announced a board of directors on Monday in its latest step toward building a national exchange to rival long-established platforms in New York and said it was gearing up to launch trading next year. TXSE announced in June that it plans to register with the U.S. Securities and Exchange Commission with backing from BlackRock and Citadel Securities. It said on Monday it had secured $135 million.
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Clear Street Completes Purchase of Fox River Algorithmic Trading Business from Instinet
Clear Street
Clear Street ("Clear Street", "the Company"), a cloud-native financial technology firm on a mission to modernize the brokerage ecosystem, announced today that the firm has completed the purchase of the Fox River algorithmic trading business from Instinet. Clear Street Investment Banking advised Clear Street on the transaction, which was announced on July 16, 2024. Fox River provides a comprehensive suite of algorithmic execution solutions in U.S. and Canadian equities. These offerings cater to buy and sell-side firms, including many of the industry's leading quant-driven funds.
/jlne.ws/3zJJlfa
Dalio, Abu Dhabi Royal's G42 Said to Shelve Investment Venture; Billionaire had signed non-compete upon departing Bridgewater; The Dalio Family Office had acquired a stake in AI firm G42
Nishant Kumar, Ben Bartenstein, and Heather Perlberg - Bloomberg
Ray Dalio's family office and Sheikh Tahnoon bin Zayed Al Nahyan's artificial intelligence firm G42 have abandoned plans to set up an asset management venture together in Abu Dhabi, according to people familiar with the matter. The plans fell through in part due to questions on whether Dalio - the founder of Bridgewater Associates - might use the hedge fund's intellectual property in any tie-up, said the people, who requested anonymity as the matter is private.
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Ukraine investigating alleged shooting of 16 POWs by Russia
Reuters
Ukraine said on Tuesday it had launched an investigation into what it said was an apparent shooting dead by Russian troops of 16 Ukrainian prisoners of war, soldiers who had surrendered on the eastern front line. "This is the largest reported case of the execution of Ukrainian POWs on the front line and yet another indication that the killing and torture of prisoners of war are not isolated incidents," Ukraine's prosecutor general Andriy Kostin said on X. "This is a deliberate policy of the Russian military and political leadership."
/jlne.ws/3BsSadM
New NATO boss Rutte pledges support for Ukraine, plays down Trump fears
Andrew Gray and Lili Bayer - Reuters
NATO's new chief Mark Rutte voiced strong support for Ukraine on Tuesday and said he was not worried about the upcoming U.S. election as he could work with former President Donald Trump or Vice President Kamala Harris. Rutte, a former Dutch prime minister, took over from Jens Stoltenberg as NATO secretary general just weeks before the Nov. 5 U.S. presidential vote that pits Democrat Harris against Republican Trump, who has been highly critical of NATO.
/jlne.ws/4dAoZmi
Ukraine ramps up arms production, can produce 4 million drones a year, Zelenskiy says
Olena Harmash - Reuters
Ukraine can produce four million drones annually and is quickly ramping up its production of other weapons, President Volodymyr Zelenskiy said in comments authorised for publication on Wednesday. Speaking on Tuesday to executives from dozens of foreign arms manufacturers in Kyiv, Zelenskiy said Ukraine had already contracted to produce 1.5 million drones this year. Drone production was virtually non-existent in Ukraine before Russia's invasion in February 2022.
/jlne.ws/3UgjOkT
Russia secures biggest victory since February as it captures Ukrainian stronghold
James Kilner - The Telegraph
Russian troops have raised their national flag - and the Soviet victory banner - on buildings in the frontline Ukrainian town of Vuhledar. Volodymyr Zelensky has reportedly ordered the retreat of his badly mauled Ukrainian forces from a town once considered an impregnable "fortress" for Ukraine.
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Russia Lifts Gas Output But 2024 Flow Seen Below Pre-War Level; Nation pumped about 515Bcm in September: data, calculations; Arctic LNG 2 kept output close to August's near-record levels
Bloomberg News
Russian natural gas output rose almost 9% during the first nine months of this year, putting it on track to meet a government target but still far short of levels before the invasion of Ukraine. About 515 billion cubic meters of gas was produced between January and September, according to Bloomberg calculations based on industry data. That includes almost 464 billion cubic meters in the first eight months of the year, plus just over 45 billion cubic meters in the first 26 days of September, according to a person familiar with the preliminary results. If Russian gas companies continued to produce at the same pace, the September total would have been around 52 billion cubic meters.
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Israel Vows Retaliation for Massive Iranian Missile Attack; Iran 'made a big mistake' and 'will pay,' says Netanyahu; Israel says most of Tehran's 200 missiles were intercepted
Henry Meyer and Marissa Newman- Bloomberg
Benjamin Netanyahu vowed to retaliate against Iran after it fired about 200 ballistic missiles at Israel, a severe escalation of hostilities between the adversaries that world powers fear could spiral into a Middle East-wide war. The barrage on Tuesday evening came hours after the US warned an Iranian assault was imminent. The Israel Defense Forces said most of the missiles were intercepted and reports indicated only one person, who was in the West Bank, was killed.
/jlne.ws/4euazW8
Iran's hardliners prevail as regime gambles on Israel attack; Leaders had sought detente with west but concluded that IDF assault on Hizbollah left them looking weak
Najmeh Bozorgmehr in Tehran and Andrew England in London - Financial Times
Shortly after Israel's assassination of Hizbollah leader Hassan Nasrallah last Friday, Iran's top political and military leaders gathered to discuss how Tehran should respond. For weeks after the surprise election of reformist President Masoud Pezeshkian in July, Iranian politicians had been publicly pushing a message of restraint even as Israel increased its attacks on Hizbollah, the Islamic republic's most important proxy.
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Iran calls on UN to prevent further escalation in Middle East tensions
Reuters
Iran's foreign ministry called on the United Nations Security Council to take "meaningful action" to prevent threats against regional peace and security, after Tehran launched a salvo of missiles against Israel on Tuesday. Iran's Revolutionary Guard Corps said the assault was in retaliation for recent Israeli killings of militant leaders and aggression in Gaza and Lebanon. Lebanese Hezbollah's leader Hassan Nasrallah and Revolutionary Guards deputy Commander Abbas Nilforoushan were killed in Beirut last week.
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Mideast Conflict Reaches the Oil Price - Briefly; A big difference between now and the 1973 Yom Kippur War is supply.
John Authers - Bloomberg
No Longer at Ease
The Yom Kippur War of 1973 still stands as the one terrifying precedent that shows conflict in the Middle East can create economic turmoil for the rest of the world. It led to the Arab oil embargo and round after round of stagflation. Iran has just launched the biggest attack on Israel since then, coincidentally the day before Rosh Hashanah, the Jewish new year and another massively important date in the religious calendar. Will we live to talk of a Rosh Hashanah War shock to match that of Yom Kippur?
/jlne.ws/3zJ0Qw0
Why the Israel-Iran Conflict Shapes the Middle East
Ethan Bronner - Bloomberg
The low-boil conflict between Israel and Iran has shaped the Middle East for decades. Of the many conflicts that have roiled the region, theirs has long been among the most explosive. The two have attacked each other - mostly quietly and in Iran's case often by proxy - while avoiding an escalation into direct war.
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | CME Group Sets New, All-Time Quarterly and September ADV Records Driven by Growth Across All Asset Classes
CME Group
CME Group, the world's leading derivatives marketplace, today reported its Q3 and September 2024 market statistics, with average daily volume (ADV) reaching new, all-time records of 28.3 million contracts in Q3 and 28.4 million contracts in the month of September, and growth across all asset classes in both periods.
/jlne.ws/47SHlgY
Kenya Bourse Chief Sees More Inflows Amid Rebound From Turmoil; Investor sentiment turns positive after public protests end; Kenya's companies posted strong results in first half of 2024
Eric Ombok and Colleen Goko-Petzer - Bloomberg
Kenya's equity market is set to attract more interest from investors after rebounding from the fall triggered by recent political upheaval, according to the head of the country's stock exchange. The country's All Share Index rose again in September, following three months of decline fueled by deadly protests over the cost-of-living crisis. The stock market is up 17% this year, delivering 42% return in dollar terms due to an appreciating shilling, data compiled by Bloomberg shows.
/jlne.ws/4eOVeiv
Merger of Vitesco Technologies Group into Schaeffler AG in the Prime Standard of the Frankfurt Stock Exchange
Deutsche Borse Cash Market
The newly merged Schaeffler AG (ISIN: DE000SHA0019) is now listed in the Prime Standard of the Frankfurt Stock Exchange since today. Schaeffler has completed the merger with Vitesco Technologies Group, announced nearly a year ago, and the associated conversion of preference shares into ordinary shares.
/jlne.ws/4erVaFV
DTCC Appoints Andrea Gibbons as Managing Director, Chief Human Resources Officer; Gibbons brings over 25 years of HR experience to her new role, with her last decade spent on DTCC's HR leadership team
DTCC
The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced the appointment of Andrea Gibbons as Managing Director, Chief Human Resources Officer. Gibbons will join the DTCC Executive Committee and report to Francis (Frank) La Salla, DTCC's President, Chief Executive Officer and Director. She replaces Anthony Portannese, who will serve as a strategic advisor to DTCC's President and CEO, Frank La Salla, until he retires at the end of the year. Gibbons has served as a key member of DTCC's HR leadership team for the past decade, where she consistently demonstrated the qualities of an enterprise leader and brought experience and a deep understanding of the firm's organizational culture and values.
/jlne.ws/3TSUktg
Euronext Securities expands its services offering with the acquisition of Acupay
Euronext
Euronext, the leading pan-European market infrastructure, today announces that it has acquired substantially all the business of Acupay Group[1], global leader in financial reporting, corporate actions, cross-border tax relief, and securities processing. Founded in 2005, Acupay offers a suite of technology services which provide relief from double taxation to cross-border investors. Its unique proprietary solution, which links brokers and banks to securities issuers, enables custodian banks to electronically prepare tax certificates and allows investors to effectively manage the impact of cross-border withholding tax. Acupay and BondCom's ability to identify bondholders allows them to assist issuers with liability management exercises.
/jlne.ws/3XJuJnU
MEMX Options Market Share Climbs to Over 3% in First Year of Operations
Options Exchange Enters Its Second Year with Positive Momentum
MEMX via BusinessWire
MEMX, a technology-driven exchange operator founded by members to benefit all investors, reached over 3% total options market share and 6.1% regular electronic options market share in September 2024, coinciding with the one-year anniversary of the exchange. Underscoring the strength of the offering, MEMX Option's market share more than doubled since May of 2024 in the continuous trading single-leg equity and ETF options category in which the exchange operates.
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OCC September 2024 Monthly Volume Data
OCC
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Apple accused by US labor board of imposing illegal workplace rules
Daniel Wiessner - Reuters
A U.S. labor board issued a complaint accusing Apple of violating employees' rights to organize and advocate for better working conditions by maintaining a series of unlawful workplace rules. The National Labor Relations Board in the complaint announced late on Monday claims Apple required employees nationwide to sign illegal confidentiality, non-disclosure, and non-compete agreements and imposed overly broad misconduct and social media policies.
/jlne.ws/47S1OCB
T.Rowe Price live on Propellant's Digital's fixed income transparency data offering via FlexTrade; "We've seen the adoption of EMS solutions on fixed-income trading desks continue to grow this year, and we expect it to accelerate further as we move into 2025," Andy Mahoney, managing director, EMEA, FlexTrade tells The TRADE.
Claudia Preece - The Trade
FlexTrade and Propellant Digital have collaborated on actionable pre-trade insights for T.Rowe Price's fixed income trading teams. Specifically, T.Rowe Price is live on Propellant's Digital's fixed income transparency data offering via FlexTrade's fixed income EMS, FlexFI.
/jlne.ws/3Bqgr3X
Charles River and Glimpse Markets unveil partnership; Glimpse describes the partnership as being a "game-changer" for its network and a step forward on its journey to democratising data access for the buy-side.
Claudia Preece - The Trade
Charles River Development and Glimpse Markets have announced a new partnership to mutually enhance their data offerings. Through this collaboration, Charles River Development can now participate on Glimpse sans technology integration, sharing their fixed income data across the Glimpse network.
/jlne.ws/4eoy6Ib
The evolution of the buy- and sell-side relationship; Wesley Bray explores the impact that new technology and alternative liquidity sources are having on the traditional buy- and sell-side roles.
Wesley Bray
As technology continues to reshape financial markets, the dynamic between buy- and sell-side institutions has undergone a transformation. Traditional boundaries are blurring as tools such as artificial intelligence, blockchain, and data analytics are disintermediating conventional trading workflows and enabling more efficient engagements. Relationships between the buy- and sell-side are evolving, with roles and responsibilities changing to accommodate new workflow behaviours.
/jlne.ws/4eK9kSs
Telegram CEO Downplays Service Term Changes Amid French Probe; Pavel Durov announced changes to terms of service last week; He faces charges in France for crimes committed on his app
Jake Rudnitsky - Bloomberg
Messaging app Telegram's recently announced updates to its terms of service haven't led to many changes, according to Chief Executive Officer Pavel Durov. "My previous post may have seemed to announce a major shift in how Telegram works," Durov said on the platform Wednesday. "But in reality, little has changed." Durov, who was charged by French prosecutors in August in connection to crimes committed on the app, announced last week that Telegram had beefed up moderation and updated its terms of service to deter criminals from abusing it.
/jlne.ws/3N7tNEO
Raspberry Pi has charmed its way to a UK computer revival; The Cambridge company conceived to enable technology education is now an industrial force
John Gapper - Financial Times (opinion)
Raspberry Pi is a quirky enterprise. Started by a foundation to make cheap microcomputers for schools, it expanded into industrial technology before listing in London in June. When it announced its first public financial results last week, its shares rose 9 per cent, giving it a market value of about £720mn. The company is based in Cambridge, the city where the pioneering Acorn Computers was founded in 1978. Acorn spun off its chip design division to form Arm before failing in the 1990s. Raspberry Pi was conceived in the university's computer science department, but has transcended its origins.
/jlne.ws/3ZNNbON
Oracle to Invest $6.5 Billion in Malaysia AI, Cloud Services Hub; US company will establish a cloud region from the country; It's the latest big outlay by a US tech firm in Southeast Asia
Yuan Gao and Edwin Chan - Bloomberg
Oracle Corp. plans to spend $6.5 billion building a cloud services center in Malaysia, becoming the latest global tech name to invest in Southeast Asian AI infrastructure. The US company will establish a cloud region in the country, essentially a network of data centers that provide services to corporate clients. That includes access to Nvidia Corp. chips that can be used to accelerate generative AI development, it said in a statement.
/jlne.ws/4eKZtvM
AI's next feat will be its descent from the cloud
Robyn Mak - Reuters Breakingviews
It's been two years since ChatGPT made its public debut, kicking off a rush to invest in generative artificial intelligence. The frenzy has lifted valuations for startups like OpenAI, inventor of the chatbot, as well as technology titans whose cloud computing platforms train and host the models that enable these services. The current boom is already showing signs of strain. AI's next phase of growth may be in the palm of your hand. So-called generative AI, where a model creates new content based on the data it's trained on, today largely exists in the cloud. OpenAI, for example, uses, opens new tab Microsoft's (MSFT.O), opens new tab Azure platform to train and run its large language models (LLMs). Anyone with an internet connection can make a query on ChatGPT using Azure's data centres around the world. But as models get larger and more complex, so does the infrastructure to train them and handle queries from users.
/jlne.ws/4gNA720
DeepMind and BioNTech build AI lab assistants for scientific research; Artificial intelligence used to help researchers plan experiments and better predict outcomes
Madhumita Murgia and Ian Johnston - Financial Times
Google DeepMind and BioNTech are building AI lab assistants to help researchers plan scientific experiments and better predict their outcomes as companies race to find specialised applications for energy and data-intensive artificial intelligence models. Sir Demis Hassabis, chief of Google's AI arm, is leading the company's efforts to develop a specialised AI model to act as a research assistant, helping scientists to collaborate across disciplines and make unexpected connections more easily.
/jlne.ws/3ZNNwB3
AI Startup Hits $500 Million Valuation to Rival Contact Centers; Crescendo has raised $50 million, is acquiring PartnerHero Investors include General Catalyst and Celesta Capital
Newley Purnell - Bloomberg
/jlne.ws/4eOhRDM
Crash; Daron Acemoglu doesn't see how AI lives up to all the hype; "You're not going to get an economic revolution," he says
Jeran Wittenstein - Bloomberg
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JP Morgan eyes tokenised FX swaps on digital assets platform; New intraday currency swaps would cut settlement risk and bring capital benefits, architects say
Cole Lipsky - Risk.net
/jlne.ws/3TQvNoV
Google to invest $1 billion in Thai data centre, cloud infrastructure
Reuters
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| Cybersecurity | | Top stories for cybersecurity | UK sanctions cyber-crime gang it says Russia charged with attacking NATO
Reuters
Britain said on Tuesday it had sanctioned 16 members of the Russian cyber-crime gang Evil Corp, a group it said had been tasked by Russia to conduct operations against NATO allies. Evil Corp was once believed to be the most significant cyber-crime threat in the world, Britain's National Crime Agency (NCA) said after taking coordinated action with officials in the United States and Australia. "Today's sanctions send a clear message to the Kremlin that we will not tolerate Russian cyber-attacks - whether from the state itself or from its cyber-criminal ecosystem," foreign minister David Lammy said in a statement.
/jlne.ws/4eMCWhX
Russian Ransomware Gang Worked With Kremlin Spies, UK Says; Evil Corp. cybercrime crew conducted espionage on NATO members; UK, US and Australia issued sanctions against alleged hackers
Ryan Gallagher - Bloomberg
A Russian criminal gang secretly conducted cyberattacks and espionage operations against NATO allies on the orders of the Kremlin's intelligence services, according to the UK's National Crime Agency. Evil Corp., which includes a leader who gained notoriety for driving a Lamborghini luxury sports car, launched the hacks prior to 2019, the NCA said in statement on Tuesday. The NCA's statement came amid an internationally coordinated effort to punish Evil Corp.'s alleged members with sanctions and, in the US, an indictment.
/jlne.ws/4dqi7YI
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| Cryptocurrencies | | Top stories for cryptocurrencies | Bitcoin Miner Profit Measure Fell to 'Recent Record' Low, JPMorgan Says; Firm estimates gross profit declined 6% month over month; Bitcoin miners continue to expand despite of thinning margins
David Pan - Bloomberg
Bitcoin mining companies saw a key measure of profitability reach the lowest point in "recent record" during September, according to a JPMorgan Chase & Co. estimate. Daily block reward gross profit declined 6% month-over-month in September, reaching "the lowest point on recent record", JPMorgan analysts Reginald L. Smith and Charles Pearce wrote in a report on Tuesday. Daily mining revenue and gross profit declined for the third consecutive month even with the moderate increase in average Bitcoin prices, according to the report.
/jlne.ws/4eLxtrU
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| Politics | | An overview of politics as it relates to the financial markets | China is 'supporting our enemy' by trading with Russia, says BlackRock
Michael Bow - The Telegraph
The head of the world's biggest investment company has accused China of "supporting our enemy" by continuing to trade with Russia. Larry Fink, chief executive of $10 trillion (£7.50 trillion) fund manager BlackRock, said businesses should "re-evaluate" their involvement with China because of Beijing's economic support for the Kremlin.
/jlne.ws/4gGWGpf
Top shale boss says US 'unusually vulnerable' to Middle East oil shock; Harold Hamm blames Joe Biden for decision to drain strategic petroleum reserve in recent years
Jamie Smyth and Amanda Chu - Financial Times
US shale magnate Harold Hamm has accused the Biden administration of leaving the nation "unusually vulnerable" to a Middle East oil price shock by draining its strategic petroleum reserve, damaging domestic production and bungling foreign policy. The Continental Resources founder told the Financial Times he was "very concerned" that Middle East conflict could disrupt global oil supplies while the US shale patch had been put in a "weakened condition", unable to rapidly lift output.
/jlne.ws/4gRrJ1p
Starmer Starts Long Road to Brexit Revamp With Brussels Trip; UK premier wants deals on defense, food checks, touring visas; EU asks include on youth mobility, fisheries, citizens' rights
Ellen Milligan and Jorge Valero - Bloomberg
Prime Minister Keir Starmer's trip to Brussels on Wednesday will be his first real foray into forging a new post-Brexit relationship with Europe, a process expected to take months, if not years amid competing priorities. Starmer will hold his first meeting in the Belgian capital with European Commission President Ursula von der Leyen since sweeping to power in July. He's eager to get an early sense of the viability of his plans for a security pact and veterinary agreement, before formal talks begin later this year.
/jlne.ws/4gQUQBZ
Why Trump Wants to Make America the 'Crypto Capital of the Planet'
Thomas B. Edsall - The New York Times
Donald Trump's views of the cryptocurrency industry have shifted markedly in recognition of the emergence of this sector as a major player in the world of campaign finance. In 2021, Trump was an outspoken critic of digital currencies, telling Newsmax, "I'm not a fan of bitcoin and other cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air."
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| Regulation & Enforcement | | Stories about regulation and the law. | India Central Bank Panel Moots Changes to MIBOR, New Benchmarks
Advait Palepu - Bloomberg
A panel set up by the Reserve Bank of India recommended changes to the methodology for the Mumbai Interbank Outright Rate, or MIBOR, and suggested introducing new benchmarks for the overnight money market. Overall call money market volumes are declining, so the calculation of MIBOR is drawing on a lower volume of transactions, the panel said in a report published on the RBI's website.
/jlne.ws/3Bqb7hh
CFTC Charges Florida Man with $600,000 Options Fraud; CFTC Seeks Disgorgement from Relief Defendants; Michael Frederick Staryk was already subject to a CFTC order for fraud
CFTC
The Commodity Futures Trading Commission today announced it filed a civil enforcement action in the U.S. District Court for the District of Connecticut charging fraud against Michael Frederick Staryk of Florida. The complaint alleges from at least 2021 through at least 2022, Staryk, individually and d/b/a Magestic World Wide Finance or Magestic World Wide Solutions, and others, engaged in a deceptive scheme in which they fraudulently solicited and obtained at least approximately $600,000 from at least 26 retail clients in the United States purportedly for trading in options on commodity futures contracts. In fact, the promised trading did not occur, and client funds were deceitfully obtained and misappropriated.
/jlne.ws/3Y62tx9
CFTC Orders Barclays to Pay $4 Million For Swap Reporting Violations
CFTC
The Commodity Futures Trading Commission today announced an order filing and simultaneously settling charges against Barclays Bank PLC for violations of the Commodity Exchange Act (CEA) and CFTC regulations relating to swap reporting. Barclays is registered with the CFTC as a swap dealer.
/jlne.ws/3ZP9VhA
CFTC Orders Tradition SEF LLC to Pay $875,000 for System Safeguards Violations and Failing to Provide Records Promptly During CFTC Examination
CFTC
The Commodity Futures Trading Commission today announced an order filing and settling charges against Tradition SEF LLC (TSEF), a registered swap execution facility (SEF) based in New York. The order finds TSEF failed to establish and maintain adequate system safeguards and failed to promptly provide records to the Division of Market Oversight (DMO) during a routine systems safeguards examination. The order requires TSEF, among other things, to pay an $875,000 civil monetary penalty and remediate its system safeguards failures.
/jlne.ws/3TRGkjG
CFTC Orders Two Swap Execution Facilities to Pay $1.3 Million for Swap Data Reporting and Core Principle Violations
CFTC
The Commodity Futures Trading Commission today announced two orders filing and simultaneously settling charges against two swap execution facilities (SEFs), BGC Derivative Markets, L.P. and GFI Swaps Exchange, LLC, for failing to properly report data related to thousands of swap transactions and violating SEF Core Principles, and against BGC SEF for also violating a prior CFTC order.
/jlne.ws/3XWxZwu
CFTC Orders Taiwanese Firm to Pay $200,000 for Wash Sales
CFTC
The Commodity Futures Trading Commission today issued an order filing and settling charges against Taishin Securities Co., Ltd., a Taiwanese financial services company, for engaging in wash sales and non-competitive transactions on the Chicago Mercantile Exchange. The order requires Taishin to pay a civil monetary penalty of $200,000 and to cease and desist from further violations of the Commodity Exchange Act and CFTC regulations, as charged.
/jlne.ws/4dpz0Ti
SEC Obtains Final Judgment Imposing Over $235,000 in Monetary Relief Against Alleged Insider Trader
SEC
On September 26, 2024, the U.S. District Court for the Southern District of New York entered a final judgment on consent against Barry Siegel in the SEC's insider trading case.
/jlne.ws/3XHCACg
ASIC cancels AFS licence of Prospero Markets
ASIC
ASIC has cancelled the Australian financial services (AFS) licence of over-the-counter (OTC) derivatives issuer, Prospero Markets Pty Ltd (in liquidation) (Prospero) effective from 25 September 2024. Prospero's AFS licence was suspended in December 2023, after Prospero failed to lodge its 2023 audited financial accounts. Following an application by ASIC, on 11 April 2024 the Federal Court ordered that Prospero be wound up on just and equitable grounds and that liquidators be appointed. Under the Corporations Act, ASIC may suspend or cancel an AFS licence if the licensee is being wound up or if the licensee has ceased to carry on a financial services business.
/jlne.ws/3NbW4KF
Full Federal Court dismisses ANZ appeal against ASIC case
ASIC
The Full Federal Court has today dismissed an appeal by Australia and New Zealand Banking Group Limited (ANZ) against a judgment that it breached continuous disclosure laws when undertaking a $2.5 billion institutional share placement in 2015. In dismissing ANZ's appeal, the Court upheld the original decision in a case brought by ASIC, which imposed a penalty of $900,000 on ANZ for contravening continuous disclosure laws.
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ESMA 2025 Work Programme: Focus on key strategic priorities and implementation of new mandates
ESMA
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FMA files civil proceedings against QEX Logistics Limited and its director, Jingjie Xue
FMA
The Financial Markets Authority (FMA) - Te Mana Tātai Hokohoko - has filed civil proceedings against QEX Logistics Ltd (QEX) and its sole director, Jingjie Xue, for failing to comply with financial reporting requirements under the Financial Markets Conduct Act 2013 (FMC Act). The FMA alleges that QEX, an FMC reporting entity, failed to prepare and lodge its financial statements for the year ending 31 March 2021, 2022, and 2023 with the Registrar of Companies. To date, none of these financial statements have been filed.
/jlne.ws/4gSaWeT
Global trends in wealth management and impacts on New Zealand
Daniel Trinder - FMA
Global wealth managers are going through a period of significant change. A shift is taking place with wealth managers expanding globally, with increasing exposure to alternative, or private assets. The industry will also likely undergo a significant shift in the coming decades with trillions of dollars of wealth transfers built by baby boomers being transferred to Generation X and Millennial children over the next twenty to thirty years.
/jlne.ws/47XH0tK
AML/CFT wire transfers fact sheet and wire transfer guidance for new regulations
FMA
The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the Act) contains a set of obligations for reporting entities to enhance the transparency of wire transfers. Wire transfers have been assessed in the National Risk Assessment1 as presenting a high risk of money laundering in New Zealand, which is consistent with experience overseas.
/jlne.ws/3NdPYsY
FCA fines Starling Bank £29m for failings in their financial crime systems and controls
FCA
The FCA has fined Starling Bank Limited £28,959,426 for financial crime failings related to its financial sanctions screening. It also repeatedly breached a requirement not to open accounts for high-risk customers. Starling grew quickly, from approximately 43,000 customers in 2017 to 3.6 million in 2023. However, measures to tackle financial crime did not keep pace with its growth.
/jlne.ws/3N6l71L
Starling Bank Fined £29 Million for 'Shockingly Lax' Checks; UK's FCA found serious concerns with Starling Bank's controls; The digital lender says it paid the fine and improved systems
Aisha S Gani - Bloomberg
Starling Bank was fined £29 million ($38.5 million) for what regulators described as "shockingly lax" controls around risky customers. The British lender had agreed to restrict new services for high-risk clients in 2021 after the Financial Conduct Authority raised concerns about its money-laundering and sanctions checks. Despite this, the bank opened over 54,000 accounts for 49,000 such customers between September 2021 and November 2023, including 294 customers who had previously been exited by Starling for financial crime reasons, according to the regulator.
/jlne.ws/47TlWog
Smart people prefer passive; Everyone loves having their priors confirmed
Robin Wigglesworth - Financial Times
How do people react to financial advice? It depends on who is receiving it, who is giving it, and what it consists of. That's the main unsurprising finding of a randomised control trial conducted by Antoinette Schoar and Yang Sun of MIT and Brandeis respectively. But the resulting NBER paper still contains some fun details - at least to those of us who have spent a few years in the active-passive trenches.
/jlne.ws/4gMZxwM
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Options Scenario That's Led to Hong Kong Stock Gains Is Back; Hang Seng, VHSI are heading for record correlation this year; Investors poised to come back to China, HK: Value Partners
Sangmi Cha - Bloomberg
For six straight days, Hong Kong's benchmark stocks gauge and a measure tracking the cost of its options moved in the same direction. The last time that happened, the Hang Seng Index went on to surge 30% in about two months. Only time will tell whether Chinese and Hong Kong markets will climb further, but for now the bull spirits have definitely come out. The Hang Seng surged 16% in the five days through Monday, its biggest rally in more than two years, and China's CSI 300 Index staged its best daily jump since 2008 to close in a bull market.
/jlne.ws/3Y7k1co
Have we seen the end of cheap money? There are reasons to expect real rates to go even higher
Martin Wolf - Financial Times (opinion)
We are seeing the beginning of an easing cycle in monetary policy. Many now ask how far might interest rates fall and what those falls might mean for our economies. Yet, for me, the more interesting questions are longer-term. To be precise, there are three. First, have real interest rates at last made an enduring upward jump, after their secular decline to extraordinarily low levels? Second, has the valuation of stock markets ceased to be mean-reverting, even in the US, where mean-reversion had long seemed the norm? Third, might the answer to the first question have any bearing on the answer to the second?
/jlne.ws/3zQf2TR
Chinese Stocks Soar More Than 7% in Hong Kong on Stimulus Bets; Gains were triggered by optimism over new stimulus measures; Hang Seng China Enterprises Index rises for 13th straight day
Charlotte Yang and Winnie Hsu - Bloomberg
Chinese shares listed in Hong Kong jumped the most in almost two years as stimulus-induced euphoria swept through the city's $5.8 trillion market. The Hang Seng China Enterprises Index climbed as much as 8.5% before closing up 7.1%, a 13th straight day of gains. Property developers led the rally, with a gauge of the sector surging as much as 47%, while an index of brokerage shares jumped 35%, both record intraday moves. Mainland Chinese markets remain shut until Oct. 8 for a week-long holiday.
/jlne.ws/4dqkuuA
How a Short Seller's Attack Threatens This Spanish Family Company; Grifols listed its shares to get more capital. In the end, it's likely to cost the founder's descendants control of the 80-year-old drugmaker.
Clara Hernanz Lizarraga and Rodrigo Orihuela - Bloomberg
For more than eight decades, the descendants of Josep Antoni Grífols Roig ran the pharmaceutical company he founded in the wake of the Spanish Civil War. But following a critical report from New York short seller Gotham City Research in January, shares in Barcelona-based Grifols SA tumbled by a third-and today the family is on the cusp of losing control.
/jlne.ws/47OXuUW
From Pearl Harbor to Sept. 11, here's how stocks typically react to the outbreak of wars; It typically takes 22 days for markets to bottom after a big event
Steve Goldstein - MarketWatch
"Buy to the sound of cannons and sell to the sound of trumpets," was the purported quote of Baron Nathan Rothschild during the Napoleonic wars (that he probably did not utter).
That's kind of what oil traders did on Tuesday, with the light sweet crude contract jumping from the low $67 per barrel range when media reports said that Iran was about to send missiles to Israel, up to as high as $71.80, after Iran's mission to the United Nations said it was done for the day. But the U.S. stock market did not enjoy the ride, with the S&P 500 index at its worst falling 1.4% after Iran sent hundreds of ballistic missiles into Israel, on concerns spiraling Middle Eastern violence could disrupt oil supplies.
/jlne.ws/4eDEOts
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Chinese outbound investment surges to record on clean energy 'tsunami'; Beijing's booming green tech sector is increasingly driving FDI flows into global markets
Edward White and William Sandlund - Financial Times
China's outbound investment is surging from already-record levels, government data shows, as analysts suggest that the country's booming clean energy technology sector is increasingly looking to set up manufacturing operations abroad in the face of US and EU tariffs.
/jlne.ws/3XMP8bD
Mark Carney warns net zero will mean 'significant' stranded property assets; Real estate investors squeezed between falling valuations and pressure to upgrade energy efficiency
Joshua Oliver and Attracta Mooney - Financial Times
Former central banker Mark Carney has warned there will be "significant stranded assets" in commercial real estate as governments push to reach net zero, highlighting the risks to property owners and lenders from older buildings that cannot adapt. Property investors are facing a double whammy from the sharp fall in asset values caused by higher interest rates, and increasingly urgent demands to invest in energy efficiency.
/jlne.ws/4eK4N2o
Biden to Sign Bill Allowing Chip Projects to Skirt Key Environmental Review; The legislation, which would weaken federal environmental reviews for certain semiconductor manufacturing projects, has divided Democrats.
Madeleine Ngo - The New York Times
More than two years ago, President Biden signed a law that aimed to ramp up the nation's production of semiconductors by offering generous subsidies and tax credits to companies. Since then, chip manufacturers have invested billions of dollars into new plants across the country.
/jlne.ws/47QZZ9a
EPA's drinking water limits for PFAS are under threat - and that's nothing new; Though utilities' mission is to provide clean water, their trade groups for decades have often fiercely opposed initiatives to improve quality
Tom Perkins - The Guardian
Several unexpected plaintiffs are behind a legal challenge aiming to kill the Environmental Protection Agency's groundbreaking new drinking water limits for highly toxic PFAS: the US's water utilities, represented by their major trade groups.
/jlne.ws/4eIYnAz
EU Poised to Delay Landmark Deforestation Rule for One Year; Move is latest sign of backlash over environmental program; The regulation had been slated to take effect Dec. 30
John Ainger, Alberto Nardelli, and Ewa Krukowska - Bloomberg
The European Commission will propose a delay of its landmark law to tackle deforestation globally, submitting to immense pressure from commodity-producing countries and industry. The move is the latest sign of backlash over the reach of its environmental program. The bloc has put forward a draft amendment to postpone by 12 months the rules that aim to curb the portion of deforestation the European Union is responsible for through its imports of key commodities, like coffee, cocoa, soy and beef, according to people familiar with the matter.
/jlne.ws/4gHAnQh
Why Only Climate Tech Cash Can Help Avoid Catastrophe; McKinsey says many of the technologies needed to decarbonize the primary sources of planet-warming gasses already exist-they just need to be scaled.
Alastair Marsh - Bloomberg
Go big or go home: That's the scenario posed by climate change. Only in this particular case, taking half-measures means no more home. Many of the technologies needed to decarbonize the primary sources of planet-warming gases already exist-they just need to be rolled out at a size commensurate with the challenge. According to McKinsey & Co., if carbon capture, heat pumps and the like were "deployed at scale" they could reduce as much as 90% of global greenhouse-gas emissions.
/jlne.ws/3zHd2gN
Big oil's big payouts under strain as energy prices fall
Ron Bousso - Reuters
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Second oil company CEO conspired with OPEC to keep prices high, FTC charges
Saul Elbein - The Hill
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The Oil Price That Matters Now Is $50 a Barrel, Not $100; The price of crude is more likely to decline than increase in the foreseeable future.
Javier Blas - Bloomberg
/jlne.ws/4gMVtN2
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Lazard, King of Emerging-Market Debt, Faces a New World Order; Along with the demands of China and debt investors, the company faces more vigorous competition, including from its own former bankers.
Todd Gillespie and Ezra Fieser - Bloomberg
It was the kind of job the bankers working out of Lazard Inc.'s Paris office were known for: Fly into a country drowning in debt-in this case, Zambia-and help rescue it from financial ruin. For decades, Lazard dominated these developing-world restructurings. Just about anytime a hard-pressed government fell hopelessly behind on bills, a few dozen bankers would arrive, usually with Lazard's team at the center, to hash out new terms in a matter of months.
/jlne.ws/4dpCDZq
ANZ fails to overturn finding that it breached rules in $2.5b raise
Lucas Baird - AFR
ANZ has failed to overturn a ruling that it breached disclosure laws during a chaotic $2.5 billion capital raising almost a decade ago after the Federal Court sided with the corporate regulator, bringing the lengthy legal stoush to an end. Federal Court judge Mark Moshinsky last year found ANZ had breached the rules in 2015, deciding that the failure to raise its target figure from institutional investors was material to the share price and should have been disclosed to retail shareholders.
/jlne.ws/47P5xkp
Morgan Stanley Seeks Dismissal of $750 Million Suit by Private Equity Firms; Certares, Knighthead say bank cheated them in loan investment; Morgan Stanley calls PE firms' fraud allegations 'implausible'
Bob Van Voris - Bloomberg
Morgan Stanley asked a judge to toss a suit by two private equity firms that claim they were cheated out of $750 million in an investment in the bank's loans to a Fortress Investment Group-backed high-speed rail operator. In a Monday court filing in New York, Morgan Stanley said Certares Management LLC and Knighthead Capital Management LLC were seeking a windfall they weren't entitled to under their credit agreement with the bank. According to Morgan Stanley, the firms' fraud claims were "implausible" because the bank itself would be harmed by the alleged scheme.
/jlne.ws/4eK6TiM
Anatomy of a trade: how UniCredit built its Commerzbank stake; Italian lender sidestepped bank ownership rules to build 21% position in German rival
Olaf Storbeck in Frankfurt and Arash Massoudi, Owen Walker and Ortenca Aliaj in London - Financial Times
Andrea Orcel stunned Germany last week by raising UniCredit's stake in Commerzbank from 9 per cent to 21 per cent in a manoeuvre that mirrored tactics made notorious in hostile takeover battles more than a decade ago. When carmaker Porsche and automotive supplier Schaeffler Group came for German blue-chips Volkswagen and Continental in 2008, they built their stakes by stealth. Back then, there was no legal obligation to disclose positions built through derivative instruments that guaranteed access to shares only at a later point in time. The loophole in EU disclosure rules has since been closed, making large-scale secret stakebuilding impossible.
/jlne.ws/3ZIN5YQ
UniCredit slashes CCP exposures by nearly 40% in a year; Lower exposures at default for exchange-traded derivatives the main driver behind overall drop
Lorenzo Migliorato - Risk.net
UniCredit's exposure to central counterparties (CCPs) dropped 38.6% year on year at the end of June, as the dealer dramatically cut exposures linked to cleared derivatives trades. Exposures at default (EAD), stemming from cleared trades, initial margin and default fund contributions, stood at EUR9.3 billion ($10.3 billion), down from EUR15.1 billion in June 2023.
/jlne.ws/4gR1ok0
Hedge Funds Pile Into China Looking for Any Way to Gain Exposure; Investors 'don't even need to stock pick,' GAO Capital says; Hedge funds made record purchases of China shares: Goldman
Ruth Carson and John Cheng - Bloomberg
/jlne.ws/3XHcyiI
Apollo's Marc Rowan Says Raising Money Is No Longer the Hard Part. Finding Deals Is; CEO touts his firm's ability to find investment opportunities
Miriam Gottfried - The Wall Street Journal
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Ninety One sees opportunity in overlooked private credit niche; Sponsorless deals offer as much as twice the return, says investment manager
Celeste Tamers - Risk.net
/jlne.ws/4gOyocD
Top Africa Fund Manager PIC's AUM Reach Record $172 Billion; Profit rose 22% in year to March 31, reaching 271 million rand; Foreign, bond, unlisted portfolios boost performance
portfolios boost performance
Loni Prinsloo - Bloomberg
/jlne.ws/4ePcRz4
Allianz CEO Baete Says Pimco Inflows Continuing 'Strongly'; Insurer 'very, very happy' with performance at Pimco; Investors returning to active management amid uncertainty
Arno Schuetze and Tom Mackenzie - Bloomberg
/jlne.ws/3zvgX0g
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | The trust deficit that leads to workplace dysfunction; A new novel exposes the plight of part-time workers while smuggling in some valuable lessons on management
Andrew Hill - Financial Times
To research her latest novel, Adelle Waldman took a part-time job unloading and shelving merchandise for a big-box US retailer in the early hours. In the book, Help Wanted, the team is called "Movement", the outcome of an all-too-plausible, consultant-led internal rebrand from the team's old title of "Logistics".
/jlne.ws/3Na41jj
New CPA Paths Emerge As States Try to Stem Accountant Shortage; National accounting groups unveil alternative to controversial 150-hour requirement for state licenses, but their proposal is raising fresh concerns
Mark Maurer - The Wall Street Journal
States are considering allowing prospective accountants to bypass a fifth year of school, one of the barriers to entry contributing to the shortage of workers in the field. Under a proposal by two national accounting groups, CPA candidates can use an additional year of work experience instead of schoolwork to demonstrate professional and technical skills. That is on top of a bachelor's degree, a passing grade on the qualifying exam and one year of work.
/jlne.ws/3ZITL9m
Carl Icahn's cone of silence; The first rule of working for Icahn: do not talk about working for Icahn
Maria Heeter - Financial Times
Star corporate raider Carl Icahn has offered his longtime chief financial officer, Ted Papapostolou, a juicy new contract extension to 2028. But it comes with some onerous strings attached. There's no doubt Papapostolou deserves a payday, having spent a lot of time extinguishing fires recently. First came last year's short attack by Hindenburg Research, which sent the shares of Icahn Enterprises LP (IEP) tumbling. More recently, Papapostolou had to settle SEC charges over pledging company securities as collateral for personal loans.
/jlne.ws/4eK8hSw
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| Wellness Exchange | | An Exchange of Health and Wellness Information | How COVID-19 Messes Up Your Gut Health
Jamie Ducharme - TIME
When you reach for a COVID-19 test, it's probably because you've got a scratchy throat, runny nose, or cough. But those are far from the only symptoms that make Dr. Rohit Jain, an internal medicine doctor at PennState Health, suspect the virus. These days, when someone complains of nausea, diarrhea, or vomiting, "I always get a COVID test on that patient," Jain says. Why? Despite its reputation as a respiratory virus, SARS-CoV-2 can also have a profound impact on the gut. Although most people don't realize it, "COVID-19 really is a GI-tract disease" as well as a respiratory illness, says Dr. Mark Rupp, chief of infectious diseases at the University of Nebraska Medical Center.
/jlne.ws/3NaySwk
Why is US health care like this? America unintentionally built a health care system that is hard to fix.
Dylan Scott - Vox
Vox reader Mike Lovely asks: Why does the US keep creating new health insurance programs (CHIP, ACA, Medicaid expansion alternatives, etc.) instead of consolidating them into one big program where all insurer carriers participate and all people pick their coverage? Health insurance in America is a constellation of brands and acronyms: Medicare, Medicaid, the VA, TriCare, the ACA, CHIP, United Healthcare, BCBS. I got a headache just listing them.
/jlne.ws/4dxVDF0
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Hong Kong Brokers Swamped by 'Once In a Century' Stock Frenzy; Hang Seng Index has its best day in almost two years; Market participants cancel holidays as frenzy picks up pace
John Cheng, Charlotte Yang, and Winnie Hsu - Bloomberg
Stock brokers in Hong Kong are having one of the busiest periods in their career, with a 31-year veteran describing the city's sudden rally as a "once in a century" event. Edmund Hui, chief executive officer of one of Hong Kong's biggest local brokerages, Bright Smart Securities, said his firm has experienced a "massive jump" in account openings. Many of his customer support staffers have canceled planned holidays, and are standing by 24 hours a day to handle the unprecedented surge in client inquiries.
/jlne.ws/3zIwycH
Yuan Options Bets Reveal Jitters Over China Stimulus Impact; Option premium to hedge yuan rally has dropped around 80%; Potential Trump win in US election is a headwind for the yuan
David Finnerty and Ruth Carson - Bloomberg
Market euphoria around China's stimulus blitz is at risk of sputtering sooner rather than later, if yuan option wagers are any guide. The volume of dollar-yuan trading surged last week in the $300 billion-plus foreign-exchange options market, according to Bank of America and Citigroup Inc. Traders have been betting on an appreciation of China's currency over the coming month - but beyond that short-term move, the outlook is far less certain.
/jlne.ws/3XSsgYr
Xi's Stimulus Blitz Adds $130 Billion to Coffers of China's Rich; Beijing delivers stimulus in monetary policy, home purchases; Chinese tycoons see record week-long wealth surge of 19%
Venus Feng and Jack Witzig - Bloomberg
China's largest stimulus package in years has helped the country's richest get a whole lot richer. The collective fortunes of the 54 Chinese people on the Bloomberg Billionaires Index jumped about 19% in the week ended Sept. 30, the largest on record for a week-long wealth gain of the country's tycoons since the ranking started tracking the world's richest 500 people in 2016. China's moguls have seen almost $130 billion of combined wealth added over the period, according to the index.
/jlne.ws/47SH9yg
Japan's $4 Trillion 'Carry Trade' Begins to Slowly Unwind; Gap between rates in Japan and other countries is narrowing; Japan investors are favoring domestic bonds over foreign debt
Ruth Carson, Masaki Kondo, and Winnie Hsu - Bloomberg
Japan's investors are starting to lose their decades-long infatuation with overseas assets. With $4.4 trillion invested abroad, an amount larger than India's economy, the speed and size of any pullback has the power to disrupt global markets. Even as the gap in rates between Japan and other countries has narrowed, the inflows have been a trickle rather than the flood some investors have feared. "It's going to be one of the mega trends and it is a super cycle for the next five to 10 years," said Arif Husain, head of fixed-income at T. Rowe Price, who has nearly three decades of investing experience. "There will be a sustained, gradual but massive flow of capital back into Japan from abroad."
/jlne.ws/3BufY0T
Romania Is Europe's Nation of Farmers, But Its Crops Are Dying; Romania accounts for about a third of all farms in the EU and depleting water supplies are jeopardizing the country's role in the food supply chain.
Andra Timu, Celia Bergin, and Irina Vilcu - Bloomberg
The 191 kilometer-long canal linking the Siret river in Romania to the country's rich, fertile Baragan plain never caught the imagination of former dictator Nicolae Ceausescu. The project only finally got going in 1986, three years before his demise, and then halted after the fall of communism. Now with a price tag the government puts at EUR5.5 billion ($6.1 billion), the irrigation channel is part of a mission to rescue crops and protect an agricultural industry that's critical to the economy and to Europe's supply chain.
/jlne.ws/3zHHTd4
Ghana Inflation Heats Up in September on Higher Food Prices; Annual inflation advances to 21.5% versus 20.4% August; Central bank cut rates Sept 27, saw price risk fairly balanced
Ekow Dontoh - Bloomberg
Ghana's inflation rate unexpectedly increased in September for the first time in six months, raising doubts about policymakers' forecasts that price growth will ease further toward the end of the years. Consumer prices rose 21.5% from 20.4% in August, government statistician Samuel Kobina Annim told reporters in the capital, Accra, on Wednesday. The main driver of the increase was food prices, according to statistics office's data. They rose at an annual rate of 22.1% compared with 19.1% in August. Non-food inflation slowed to 20.9% from 21.5%. Month-on-month, prices rose 2.8% in September.
/jlne.ws/3Bm2PXt
Ethiopia Asks Already Defiant Bondholders to Take an 18% Haircut
Fasika Tadesse and Jorgelina Do Rosario - Bloomberg
Ethiopia proposed that holders of its $1 billion bond take an 18% loss in a debt restructuring, even as it acknowledged that an influential group of investors has rejected such an offer in advance. The government held a call with global investors on Tuesday to spell out its debt-rework strategy, while noting major obstacles to progress.
/jlne.ws/4dvijG9
South Africa's Treasury Endorses Banker to Be Next AfDB Head; Tshabalala would be first woman to lead pan-African lender; Election of next bank president to take place in May 2025
S'thembile Cele - Bloomberg
South Africa's National Treasury endorsed Bajabulile Swazi Tshabalala, a former senior staffer at the African Development Bank, to become the next head of the pan-African lender. Tshabalala stepped down from her role as senior vice president of the Abidjan-based AfDB on Tuesday after receiving an endorsement from the South African cabinet for her candidacy to become the next president of the bank. The lender's current head, Akinwumi Adesina, is scheduled to step down in September 2025.
/jlne.ws/3ZP0u1I
Rate Hikes, Currency Woes Force a Corporate Reckoning in Brazil
Rachel Gamarski and Giovanna Bellotti Azevedo - Bloomberg
Executives in Latin America's largest economy are redrawing plans, reprofiling debt and holding back investment as interest rates climb and the currency remains under pressure. While companies the world over have been contending with higher borrowing costs, Brazilian firms have had an especially tough burden, hit with some of the steepest rates in the world after surviving the pandemic with little government aid. Now rates are going up again after a respite of just over a year.
/jlne.ws/3Y79iyr
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