| November 11, 2022 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
Well, that was quick. Sam Bankman-Fried has resigned from FTX and put the company into bankruptcy, according to multiple sources, Bloomberg and The Wall Street Journal among them.
For months it was a parade of journalists who made the trek to the Bahamas to visit the beanbag-sleeping Sam Bankman-Fried ("SBF") and his FTX empire headquartered in a penthouse there. Now it will be a parade of regulators making the trek trying to understand how SBF and FTX collapsed into a heaping pile of crypto mess so quickly. And SBF will have accomplished something difficult, getting something frozen in the sweltering Bahamas.
One of the things that the demise of the fortune of SBF and FTX does is destroy the clout of crypto's Washington spokesman, the Financial Times says in a story. SBF had been a major political donor, and the FT says, "In less than four years, Sam Bankman-Fried rose from founding crypto exchange FTX to becoming the industry's tousled de facto spokesman in Washington." Of course, The New York Post weighed in on the subject with this subtle headline: "FT-EXIT Dems' $15.6B crypto king loses his shirt - how it hurts Brady, Curry & Joe Biden."
The U.S. stock market had a record yesterday as Apple surged in value $191 billion in a single day, the most value added to a company in a day in history, according to Bloomberg.
The CAIA Association and the CFA Society NC are putting on an energy panel discussion at the Barings Global Headquarters on December 1, 2022, from 4:45 to 8:00 p.m. that will feature former JLN staffer Doug Ashburn, now of Encyclopedia Britannica.
What a difference a day makes. It is sunny here in Sarasota today. I am leaving as soon as I finish this newsletter and heading back to Chicago. I hope to see many readers at the FIA EXPO in Chicago next week. Make sure you say hello. After my September 1 hip replacement surgery, I am still using a cane to get around just to be careful.
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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Nasdaq Executive VP and CFO Ann Dennison and Nasdaq President Nelson Griggs will present at the J.P. Morgan Ultimate Services Investor Conference on Thursday, November 17 at 9:50 a.m. (EST). Their presentation will be webcast at Nasdaq's Investor Relations website. You can learn more here. ~SAED
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Trading of futures and options on track to a record year - FIA
by Sarah Rudolph - John Lothian News
Trading of futures and options is on track to a record year, with higher levels of trading activity in many sectors, notably interest rate and equity index contracts, according to the FIA's Will Acworth, who went over the volume numbers for the first nine months of 2022 in a FIA webinar titled, "Q3 2022 Trends in Futures and Options Trading" Wednesday. On the other hand, Acworth said, trading of agriculture, energy and other commodity contracts is down from last year, with lower volume in commodity futures offsetting a rise in the trading of options on commodity futures.
Read more »
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Attractive female students got lower marks when lectures moved online
Rhys Blakely - The Times
Physically attractive female university students received lower marks when lectures moved online during the pandemic, a study has found. The results may help to settle a long-standing debate over why good-looking people often appear to have an advantage in life. Researchers have known for several decades that attractive individuals tend to receive higher wages than their less attractive peers. They are more likely to be promoted and less likely to go to prison.
/jlne.ws/3UOaNgx
****** This is not a blind taste test, Coke versus Pepsi. This is a blind grading test. ~JJL
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FTX's $8bn crunch exposes a dog-eat-dog cryptosphere; The near-collapse of Sam Bankman-Fried's empire leaves Binance dominant
Financial Times
The trajectory from hero to zero can be swift and brutal, as Sam Bankman-Fried can attest. The 30-year-old boss of FTX, who last year aspired to buy Goldman Sachs, this week saw his on-paper $24bn fortune crumble, as his crypto exchange suffered an $8bn liquidity crunch. SBF marketed himself as the friendly face of crypto, who was - at least ostensibly - engaging with regulators, and attracting celebrities and blue-chip investors. His empire's downfall leaves a dog-eat-dog cryptosphere that ordinary investors, regulators and politicians should treat with caution. SBF's woes began on November 2, when CoinDesk revealed that his hedge fund, Alameda Research, was full of the tokens FTX prints out of thin air, FTT. Of Alameda's $14.6bn in assets, nearly $6bn was FTT, with $2.2bn of it pledged as collateral against loans. Four days later, FTX's arch-rival, Binance, said it would sell its $580mn of FTT in light of the revelations.
/jlne.ws/3hBTKAd
****** As the old saying goes, "If you don't know who is the mark in the game you are playing, you are the mark." ~JJL
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Bankman-Fried's Assets Plummet From $16 Billion to Zero in Days
Venus Feng and Tom Maloney - Bloomberg
The entire $16 billion fortune of FTX co-founder Sam Bankman-Fried has now been wiped out, one of history's greatest-ever destructions of wealth. The downfall of his crypto exchange and its trading house, Alameda Research, means assets owned by the mogul once likened to John Pierpont Morgan have become worthless. At the peak, the 30-year-old was worth $26 billion, and he was still worth almost $16 billion at the start of the week.
/jlne.ws/3A7VhEo
*****Stack this up to "ineffective altruism." ~JJL
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The crypto world must be made safer for investors and users; Recurring crises mean the industry must accept regulation and controls
Frances Coppola - Financial Times
The sudden collapse of the crypto exchange FTX raises serious questions about the state of the crypto ecosystem. Without serious changes in the way it works, it is hard to see how it could even become part of the existing mainstream financial system, let alone replace it as some would like to see.
/jlne.ws/3E0bkFx
****** The world must be made safer? One does not eliminate risks, one manages them. Regulation can help manage risk if done properly, but risk is a moving target and regulation can lag. Thus, we always have risk to manage ourselves, the best we can.~JJL
****** During my interview with Richard Sandor the other day, he told me some advice given to him by David Goldberg. Goldberg asked Sandor what size position he liked to trade. Sandor said he liked to have on a five lot. Goldberg said that was the wrong answer; at Goldberg, the correct position to have on at all times was nothing unless you had an idea. Great advice.~JJL
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The Crypto Ponzi Scheme Avenger; From his home in New Zealand, the YouTuber Danny de Hek assails what he calls a dangerous and deceptive scheme, one rant at a time.
David Segal - The New York Times
Last year, Danny de Hek was a social media guru badly in need of a social media guru. A buoyant New Zealander with geeky glasses, he dispensed advice about how to vastly expand your online audience, to a group of just 350 subscribers.
/jlne.ws/3NVxKfC
***** A Crypto AVENGER? Behind those geeky glasses is a hero for our ages?~JJL
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Thursday's Top Three
Thursday was all-FTX day. Our top story Thursday was Untangling the knotty empire of Bankman-Fried and FTX, from the Financial Times. I'm going to print out those charts, have them enlarged, and hang them over my bed. Second was Why Did FTX Pause Withdrawals if It Wasn't Trading Customer Funds? from CoinDesk. ("...perhaps most frightening is the simple fact that customer funds seemingly weren't where they were supposed to be.") Third was FTX Hurtles Toward Bankruptcy With $8 Billion Hole, US Probe, from Bloomberg.
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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 | Bankman-Fried Resigns From FTX, Puts Empire in Bankruptcy; Filings include FTX.com, FTX US and Alameda Research; Bankman-Fried steps down as chief executive officer of FTX
Jeremy Hill - Bloomberg
Sam Bankman-Fried's crypto empire filed for Chapter 11 bankruptcy in Delaware, capping a rapid downfall for his companies. Entities tied to FTX.com, FTX US and trading firm Alameda Research Ltd. were part of the filings, according to a Twitter statement Friday. Chapter 11 bankruptcy lets a company continue operating while it works out a plan to repay creditors. Bankman-Fried resigned as chief executive officer as part of the filings, and John J. Ray III was appointed to replace him, the statement said. Crisis quickly befell FTX this month after prices for the exchange's native crypto token, FTT, plummeted and users raced to withdraw their assets. Rival crypto exchange leader Changpeng "CZ" Zhao had earlier said he would sell some $529 million of FTT coins due to "recent revelations that came to light."
/jlne.ws/3EoyJl8
Global regulators circle Sam Bankman-Fried's FTX exchange; Authorities in group's home market and other jurisdictions take actions to protect client funds
FT reporters
Global regulators are closing in on embattled crypto exchange FTX as fallout spreads in digital asset markets and founder Sam Bandman-Fried pursues a last-ditch effort to raise up to $8bn in fresh funds. Authorities in Japan, Australia and the Bahamas, where FTX is based, have all taken actions as worries mount that customers in one of the world's biggest digital asset venues could face severe losses.
/jlne.ws/3g0F1hF
FTX Tapped Into Customer Accounts to Fund Risky Bets, Setting Up Its Downfall; FTX's chief executive told investors this week that an affiliated trading firm owes the crypto exchange about $10 billion
Vicky Ge Huang, Alexander Osipovich and Patricia Kowsmann - The Wall Street Journal
Crypto exchange FTX lent billions of dollars worth of customer assets to fund risky bets by its affiliated trading firm, Alameda Research, setting the stage for the exchange's implosion, a person familiar with the matter said. FTX Chief Executive Sam Bankman-Fried said in investor meetings this week that Alameda owes FTX about $10 billion, people familiar with the matter said. FTX extended loans to Alameda using money that customers had deposited on the exchange for trading purposes, a decision that Mr. Bankman-Fried described as a poor judgment call, one of the people said. All in all, FTX had $16 billion in customer assets, the people said, so FTX lent more than half of its customer funds to its sister company Alameda.
/jlne.ws/3fTHtqi
FTX assets frozen by Bahamas regulator as crypto exchange fights to survive; Investors describe chaotic race by Sam Bankman-Fried to secure as much as $8bn to bail out his group
Financial Times
The Bahamas securities regulator has frozen the assets of part of Sam Bankman-Fried's crypto empire and moved to appoint a liquidator for one of his entities, as the embattled entrepreneur raced to raise as much as $8bn to save FTX. The Bahamas Securities Commission took the action on Thursday against FTX Digital Markets, the Bahamian subsidiary of FTX. No assets belonging to the business can be transferred without the approval of a provisional liquidator, the regulator said. FTX moved to the Bahamas in 2021 from Hong Kong, where it was launched.
/jlne.ws/3g01xaw
FTX Customers Wonder Whether They'll Ever See Their Money Again; The exchange paused customer withdrawals at its international unit this week; 'If you can't trust exchanges, the whole premise of cryptocurrency doesn't work'
Vicky Ge Huang - The Wall Street Journal
Stephen Gibbs got spooked this week when he heard about problems brewing at FTX and he decided it was time to take his money out of the crypto exchange. Mr. Gibbs, a musician in Thailand, said he tried to withdraw his money Tuesday. But FTX that day halted both crypto and fiat withdrawals from its international unit. As of Thursday, Mr. Gibbs said, his transaction was still listed as "requested."
/jlne.ws/3A6Hga4
FTX turmoil destroys clout of crypto's Washington spokesman; Sam Bankman-Fried sought digital asset legislation and donated heavily to Democrats
Stefania Palma and Scott Chipolina - Financial Times
In less than four years, Sam Bankman-Fried rose from founding crypto exchange FTX to becoming the industry's tousled de facto spokesman in Washington. In less than a week, crypto's politician whisperer has witnessed the collapse of his empire and the evaporation of his influence on Capitol Hill. Bankman-Fried's FTX - and sister trading firm Alameda Research - were until this week considered a rare oasis of stability in an otherwise teetering crypto market. In a summer of market turmoil the chief colloquially known as "SBF" built stature by coming to the aid of flailing crypto companies such as lending platform BlockFi.
/jlne.ws/3A7vtbj
FTX US Warns of Trading Halt Hours After Bankman-Fried Says It's '100% Liquid'
Nikhilesh De - CoinDesk
Crypto exchange FTX US - the U.S. wing of Sam Bankman-Fried's crypto trading empire - warned its users to close their positions as it might halt trading in the coming days. "Announcement 2022-11-10: trading may be halted on FTX US in a few days. Please close down any positions you want to close down. Withdrawals are and will remain open. We will give updates as we have them," a banner on its website said. The announcement came just hours after Bankman-Fried said in a Twitter thread that FTX US was "100% liquid," in contrast to FTX International, the global crypto trading company that's currently seeking funding to fill a reported $10 billion hole.
/jlne.ws/3UKSclx
Bankman-Fried invested in venture capital backers of his FTX exchange; Founder of struggling crypto businesses placed hundreds of millions with Sequoia and other firms
Kadhim Shubber, Arash Massoudi and Tabby Kinder - Financial Times
Sam Bankman-Fried invested hundreds of millions of dollars into venture capital funds run by firms such as Sequoia Capital which also backed his struggling FTX crypto exchange, according to documents seen by the Financial Times. The 30-year-old entrepreneur, who has been seeking to raise billions of dollars in emergency financing, has a $200mn investment in two funds run by Sequoia, the US venture capital investor, held through his Alameda Research crypto trading group. Alameda also had smaller investments in funds run by FTX venture capital backers Paradigm, Altimeter Capital Management, Sino Global Capital and Multicoin Capital, the documents show.
/jlne.ws/3E25eo3
Crypto Can Survive the Possible Demise of FTX; For many true believers, crypto exchanges are a sellout and a concession to older methods of finance and settlement.
Tyler Cowen - Bloomberg
As the drama surrounding FTX and Sam Bankman-Fried continues to unfold, most people are focused on the immediate questions of what exactly happened and why. I would like to ask some larger questions about where the crypto universe and its clearinghouses might be headed, given this radical change in the landscape.
/jlne.ws/3DYCEUs
What Binance's Axed FTX Buyout Means for the Cryptoverse; The latest on Binance's canceled FTX buyout and what investors can expect next
Janet Babin - Bloomberg
The equivalent of an earthquake jolted the crypto world this week: Binance, the world's largest cryptocurrency exchange, announced and then quickly reversed a proposal to buy out rival exchange FTX, which was reportedly facing a liquidity crisis and on the brink of collapse.
/jlne.ws/3TsKifu
Crypto Hedge Fund Says Nobody Saw FTX Explosion Coming; Strix Leviathan's executives explain what they did to avoid getting too badly burned as an FTX counterparty.
Michael P. Regan and Vildana Hajric - Bloomberg
FTX cryptocurrency exchange rattled the financial world this week when a crisis of investor confidence triggered a run, forcing the company to scramble for a buyer or bailout to avoid collapse. Joining the What Goes Up podcast to discuss the chaos that ensued are Sadie Raney, chief executive of the crypto hedge fund Strix Leviathan, and Nico Cordeiro, its chief investment officer. The firm said it had a limited amount of funds with FTX frozen. "We've been through a number of market crashes," says Raney. "We've used Voyager in the past. We also used BlockFi. And when there were some indicators that maybe they were, I guess you could say over their skis, we stopped trading with them." "This one," Raney said, "I don't think anyone saw coming." Cordeiro adds that while their firm has "some funds frozen there," it was "a small portion of our portfolio allocated there-simply because this space is the wild west."
/jlne.ws/3tkdNWn
Tron Is Ready to Provide FTX With Billions in Aid, Sun Says; Firm is prepared to cover the loss once due diligence is done; Tron teamed with FTX to allow users to withdraw some tokens
Emily Nicolle and Tom Mackenzie - Bloomberg
Tron is prepared to provide billions of dollars in aid to FTX.com should it go ahead with a deal to rescue the ailing cryptocurrency exchange, founder Justin Sun said. FTX is currently nursing a shortfall of as much as $8 billion, with its founder Sam Bankman-Fried telling investors on Wednesday that the business will require at least $4 billion in fresh funding to remain solvent. Previous rescue talks with rival exchange Binance fell through on Wednesday, with Sun stepping in to hold discussions shortly after.
/jlne.ws/3NW8iqn
FT Cryptofinance: Crypto's Lehman moment; Plus, the US secures a conviction as it follows the Silk Road
Scott Chipolina - Financial Times
Where to start after a week like this? The spectacular unravelling of Sam Bankman-Fried's crypto empire, from the FTX cryptocurrency exchange to Alameda Research, his proprietary trader, has been likened to the industry's Lehman Brothers moment. The latest to draw the comparison was Changpeng Zhao, chief executive of Binance, who said it was "probably an accurate analogy".
/jlne.ws/3ULz5YD
Inter-Agency Working Group Releases New Report on Treasury Market Resilience Efforts
U.S. Department of the Treasury
The Inter-Agency Working Group on Treasury Market Surveillance (IAWG)-which is composed of staff from the U.S. Department of the Treasury, the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of New York, the U.S. Securities and Exchange Commission, and the U.S. Commodity Futures Trading Commission-today issued a staff progress report to provide an update on a wide range of significant steps its members have taken to enhance the resilience of the U.S. Treasury market.
/jlne.ws/3TsacQK
Apple's $191 Billion Single-Day Surge Sets Stock-Market Record
Jeran Wittenstein - Bloomberg
Apple Inc.'s surge Thursday was one for the record books. The world's most valuable company added $190.9 billion in market value, the most ever by a US-listed company, as softer-than-expected inflation data buoyed equity markets across the board. The jump eclipsed Amazon.com Inc.'s $190.8 billion gain in February, according to data compiled by Bloomberg.
/jlne.ws/3EoCPda
Elon Musk reportedly said Twitter could file for bankruptcy next year
Daniel Howley - Yahoo! Finance
Elon Musk's tenure at Twitter got even bumpier on Thursday, as he reportedly told employees during an emergency all-hands meeting that he can't rule out the company filing for bankruptcy in the next year. Musk made the announcement during the all-hands meeting after an employee asked about the company's current run rate, according to both The Information and Platformer managing editor Zoë Schiffer.
/jlne.ws/3fVeXEu
Who Still Has Exposure to FTX?
Brandy Betz - CoinDesk
The crypto industry is in turmoil after insolvency issues drove major exchange FTX to accept a nonbinding acquisition offer from rival Binance that might not go through. FTX suspended withdrawals on Tuesday, but some peers and major traders still have assets stuck on the exchange. In response to the market volatility on Tuesday, Genesis, a trading firm for institutional investors, tweeted that it "hedged and sold collateral resulting in a total loss of ~$7M across all counterparties, including Alameda."
/jlne.ws/3A8UXFn
FTX allegedly used customer assets in Alameda bailout: report
Zoltan Vardai - Forkast
A portion of the bailout package worth at least US$4 billion that FTX.com Chief Executive Officer Sam Bankman-Fried sent to Alameda Research, a sister trading company of the exchange he founded, was allegedly comprised of customer funds, according to at least two unnamed sources cited by Reuters.
/jlne.ws/3G2P2FH
FTX Crisis Is a 'Gift to Bitcoin Haters': Kraken Founder Jesse Powell; In a lengthy Twitter thread against the FTX exchange, Jesse Powell said the crisis was "a massive setback" for the industry.
Tim Hakki - Decrypt
Jesse Powell, the founder and former CEO of centralized exchange Kraken, has taken to Twitter to air his thoughts on the bombshell of FTX's liquidity crisis this week. "I know we're going to get past this," Powell reassured his readers, "but this is a massive setback. I'm really trying to control my rage." Powell then dove straight into a ten-tweet broadside that doesn't explicitly namecheck FTX or its CEO Sam Bankman-Fried, although it's clear from multiple references that he has the ailing exchange and its management firmly in his crosshairs.
/jlne.ws/3WO6SlT
Sam Bankman-Fried Was Supposed to Be Different. He Wasn't.; The FTX founder was said to be the "next Warren Buffett," a billionaire with a "savior complex." Now, it's all burning down.
Edward Ongweso Jr, Jordan Pearson and Maxwell Strachan - VICE
Thirty-year-old Sam Bankman-Fried is crypto's wunderkind. A flurry of well-placed puff pieces laid the ground for a reputation as a genius-a slightly awkward space cadet, but a genius nonetheless-who seemed to have his hands in everything, everywhere, all at once. He was, according to various articles and magazine covers published shockingly recently, "the next Warren Buffett," and would soon be "the world's first trillionaire."
/jlne.ws/3WWh23V
Fireside Friday with... Instinet's Seema Arora; The TRADE sits down with head of execution sales at Instinet Europe, Seema Arora, to explore the evolution of electronic trading and the changing role of sales traders and high touch amid market volatility.
Annabel Smith - The Trade
In the current market environment is there any room for anything other than a high touch service? It's usually true that during times of high volatility the marketplace tends to pivot toward more high-touch and care trading services. The ability to lever the instincts and experience of deeply connected trading desk teams is welcome in unpredictable markets. However, when liquidity is scarce clients move back to anonymity and trading electronically. That can still require high-touch service as the boundaries of high and low touch services have morphed across channels.
/jlne.ws/3NZCBMO
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | South Korea to Sell Arms to U.S. for Ukrainian Forces Fighting Russia; Artillery units are to be supplied for at least several weeks of intensive combat
Michael R. Gordon and Gordon Lubold - The Wall Street Journal
South Korea will for the first time sell artillery shells destined for Ukrainian forces through a confidential arms deal between Seoul and Washington, a move that reflects a global scramble for munitions after months of war with Russia. U.S. officials familiar with the deal said that the U.S. will purchase 100,000 rounds of 155mm artillery ammunition that will be delivered to Ukraine, enough to supply Ukraine's artillery units for at least several weeks of intensive combat. Routing the deal through the U.S. allows South Korea to stick to the letter of its public commitment not to send lethal military support to Ukraine while assisting Washington, Seoul's paramount ally in deterring North Korea.
/jlne.ws/3tndbzc
Russia is in retreat in every major international forum
David Ignatius - The Washington Post
As Russia's military troubles mount in Ukraine, it's also becoming more isolated internationally as organizations affiliated with the United Nations purge Moscow's representatives from leadership positions. This rollback of Russian power and prestige at the United Nations has accelerated in recent months. It's another example of the way the Ukraine war is realigning the international system into a small bloc supporting the Kremlin and a larger group backing the United States and its broad coalition of allies.
/jlne.ws/3TrRlVR
Russia Quietly Checks Its Bomb Shelters as War Fears Spread; Push seen as part of efforts to boost military preparedness; Efforts come amid growing militarization of Russian life
Bloomberg
In the latest reflection of the Kremlin's expanding war effort, bomb shelters across Russia are being brought back to life after more than three decades of neglect since the end of the Cold War. State workers are quietly checking basements and other protected facilities, repairing and cleaning installations not used since the Soviet era, according to people familiar with the efforts. The moves are part of a broader push by authorities to make sure civil-defense infrastructure is ready in case of a wider conflict, people familiar with the situation said, speaking on condition of anonymity to discuss matters that aren't public.
/jlne.ws/3DXHfGn
Military briefing: how Russia's Kherson retreat changes Ukraine war; Retreat robs Moscow of its biggest military achievement in the conflict and expands Kyiv's options ahead of winter
Henry Foy, Roman Olearchyk and Felicia Schwartz - Financial Times
The colourful billboards erected by Russia's occupying forces in the Ukrainian city of Kherson boasted that it would be a Russian city "forever". In reality, that lasted just more than eight months. Under sustained bombardment from a Ukrainian counter-offensive that started on August 29, Russian troops at risk of encirclement were ordered to withdraw from the city on Wednesday. Their retreat marks a major victory for Kyiv in the battle for south-east Ukraine, one that robs Moscow of its biggest military achievement of the war and changes the calculus for both sides as the conflict heads into winter.
/jlne.ws/3NUmLTL
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Advancing Sustainability and Transparency on the ESG Journey
Nasdaq
The 2020s are shaping up to be a transformative era of impact. Increasingly, investors, markets, employees, and customers view environmental, social, and governance (ESG) practices and priorities as being essential to a company's long-term success and viability. Companies that overlook the growing importance of ESG may leave themselves open to serious financial, operational, and reputational risks.
/jlne.ws/3Tuc632
SGX Cares wraps up fundraising year with close to S$3 million raised for its beneficiaries; Senior Minister Teo Chee Hean flagged off the Charity Run held at The Float @ Marina Bay
SGX Group
SGX Cares has concluded its fundraising efforts for the year with its 19th annual SGX Cares Bull Charge Charity Run, raising close to S$3 million for its beneficiaries. The hybrid event started its virtual run last month with 4,000 participants clocking close to 79,000km, and capped it off today with 2,500 runners thronging the Central Business District. The in-person run comprised a 5km Mass Run and 3.5km Chief Challenge involving CEOs and chiefs of companies.
/jlne.ws/3NZqsav
Melanie Dannheimer was appointed to the management boards of the Frankfurt Stock Exchange and Eurex Deutschland
Deutsche Boerse Group
The Exchange Councils of the Frankfurt Stock Exchange (FWB) and Eurex Deutschland have appointed Melanie Dannheimer as an additional member of the Management Boards of FWB and Eurex Deutschland with effect from November 10, 2022.
/jlne.ws/3hCHKOV
Moscow Exchange and ICB agreed to cooperate in the development of the carbon units market
MOEX
On November 11, 2022, the Moscow Exchange and the Moscow Credit Bank (MCB) entered into an agreement on cooperation in the development of a voluntary system for trading in carbon units.
/jlne.ws/3A3zKg0
Moscow Exchange launches CNY bond index calculation
On November 14, 2022, the Moscow Exchange will start calculating and publishing a new debt market indicator - the Index of Russian Bonds denominated in Chinese Yuan.
/jlne.ws/3Eqo4q4
Request For Comments; Proposed Amendments To The Rules Of The Bourse Regarding The Three-Month Canadian Bankers' Acceptance Futures (Bax) And Inter-Group Strategy Block Thresholds
TMX
On October 26, 2022, the Rules and Policies Committee of Bourse de Montréal Inc. (the "Bourse") approved amendments to the Rules of the Bourse regarding the minimum volume threshold for block transactions on the Three-Month Canadian Bankers' Acceptance Futures ("BAX") during regular hours, as well as the inter-group strategy block thresholds for Short-Term Interest Rate ("STIR") Futures during regular trading hours.
/jlne.ws/3Tz0LyF
Self-Certification: Amendments To The Rules Of Bourse De Montreal Inc. Relating To The Introduction Of A Marker At Order Entry For Prearranged Transactions
TMX
On May 2, 2022, the Rules and Policies Committee of Bourse de Montreal Inc. (the "Bourse") and, on April 19, 2022, the Special Committee of the Regulatory Division of the Bourse approved amendments to article 6.115 of the rules of the Bourse (the "Rules") in order to introduce a new order marker at order entry for each order entered into the Trading System (the "Amendments")
/jlne.ws/3WTMW0R
NYSE Honors Veterans with Moment of Silence
NYSE
On Friday, November 11, 2022, the NYSE will observe a two-minute moment of silence at 9:20 am ET to honor military service men and women in recognition of Veterans Day. A single strike of the NYSE Bell at 9:20 am ET will indicate the start of the moment of silence.
/jlne.ws/3G8IBAM
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Musk Warns Twitter Bankruptcy Possible If Cash Burn Lingers; 'Chief Twit' used B word in first address to Twitter employees; Investors were already offering distressed prices for loans
Edward Ludlow, Kurt Wagner, Davey Alba, and Paula Seligson - Bloomberg
Elon Musk, in his first address to Twitter Inc. employees since purchasing the company for $44 billion, said that bankruptcy was a possibility if it doesn't start generating more cash, according to people familiar with the matter. The warning came amid a tumultuous start to Musk's reign at the social media company -- a two-week period in which he has fired half of Twitter's staff, ushered out most of the top executives and ordered the remaining employees to stop working from home.
/jlne.ws/3WQWKsu
Twitter Staff Grapple With Brand Impostors Like Nintendo, Lilly; Musk said 'absolute priority' is taking down verified trolls; Twitter Blue allows anyone to pay for verification check marks
Davey Alba and Kurt Wagner - Bloomberg
Twitter Inc.'s trust and safety team, which earlier this week had been focused on the US midterm election, quickly shifted its attention to deal with a problem of its own making: a host of users impersonating major brands and celebrities, according to people familiar with the matter. New leader Elon Musk, who purchased the company two weeks ago for $44 billion, updated the premium version of the product in a way that awards paying subscribers with blue check marks -- the same ones that governments, celebrities and businesses get on the site for free to confirm their identities.
/jlne.ws/3A6gdeQ
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| Cybersecurity | | Top stories for cybersecurity | Twitter's Cybersecurity Chief Is Leaving the Social-Media Company
Kurt Wagner and William Turton - Yahoo Finance
Three of Twitter Inc.'s top privacy and security officials said they're leaving, heightening concerns about the company's ability to keep its platform secure and comply with regulatory rules.
/jlne.ws/3UMrIzZ
Statement of Commissioner Christy Goldsmith Romero on Proposed Rule on Cybersecurity Incident Reporting
CFTC
I support the Commission considering expanding requirements for clearing house notifications to the CFTC of cybersecurity incidents and clearing system malfunctions. The proposal is informed by the CFTC's experience, which involves around 120 recent reportable events, in addition to some clearing houses who have not reported cybersecurity incidents and clearing system malfunctions as required. I look forward to public comment on whether the proposed rule will be sufficient to hold clearing houses accountable for reporting delays or failures. I also look forward to public comment on whether the proposed rule sufficiently adapts to the ever-evolving cybersecurity threat landscape and adequately addresses changing technologies and risks, including those related to cryptocurrencies.
/jlne.ws/3hyGaxs
UK Ministry of Defence Deploys Immersive Labs to Increase its Cyber Resilience and Support National Security
Yahoo Finance
Immersive Labs, the leader in people-centric cybersecurity, today announced that the UK Ministry of Defence (MOD) has deployed Immersive Labs Cyber Pro, Crisis Sim, and AppSec solutions to upskill individuals and teams across its organisation to confront the latest cyber threats, prove cyber readiness, and identify cybersecurity talent to fill open roles. The integration supports the MOD's new Digital Skills for Defence programme to build stronger, digital skills across defence and follows a successful trial by the UK Army.
/jlne.ws/3tkfbIq
Cybersecurity, cloud and coding: Why these three skills will lead demand in 2023
Owen Hughes - ZDNET
The demand for digital skills has accelerated considerably in 2022. As more companies lean on technology to innovate and future-proof their business, the pool of available software talent capable of achieving these goals continues to shrink. While this has created considerable hiring challenges for companies, skilled technology professionals have found themselves in a very favourable position when it comes to job opportunities and negotiating power.
/jlne.ws/3WUM7Vt
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| Cryptocurrencies | | Top stories for cryptocurrencies | 'They will come to a bad ending': A year since its $69K peak, Bitcoin has plummeted more than 70% - here's why Warren Buffett has hated cryptocurrency all along
Ethan Rotberg - MoneyWise
It's been a tough year for Bitcoin and its backers. And even back in 2018, the Oracle of Omaha predicted that it and other cryptocurrencies were headed for trouble. "They will come to a very bad ending," Warren Buffett told CNBC at the time. After hitting an all-time peak of around $69,000 per unit on November 10, 2021, the world's leading digital currency has since erased roughly 76% of its value, sitting at just under $16,000 as of 4:30 pm on Wednesday. Holdout investors who once thought they'd missed an opportunity of a lifetime are now sighing with relief; meanwhile, those who bought in at the peak are trying not to think about their losses.
/jlne.ws/3G6FkSy
BlockFi Halts Withdrawals in Fresh Contagion From FTX Crisis
Hannah Miller - Bloomberg
The crisis sparked by the collapse of Sam Bankman-Fried's FTX crypto empire ensnared BlockFi, a troubled crypto lender once worth $3 billion but which is now unable to operate business as usual. BlockFi on Twitter said it will limit platform activity and pause client withdrawals. The firm cited "a lack of clarity" over the status of onetime savior FTX US as well as the uncertainty afflicting FTX.com and Alameda Research.
/jlne.ws/3Ty9Wzn
Sam Bankman-Fried apologises for FTX crisis; Crypto exchange's chief admits venue did not have funds to meet surge in withdrawals
Scott Chipolina - Financial TImes
Sam Bankman-Fried has apologised for the crisis that has engulfed his financial empire and admitted crypto exchange FTX did not have enough readily accessible funds to meet a $5bn wave of customer withdrawals. In a series of tweets published on Thursday, Bankman-Fried said: "I'm sorry. That's the biggest thing. I fucked up, and should have done better." Bankman-Fried's mea culpa comes as FTX, one of the world's biggest crypto trading venues, teeters on the brink of collapse. The 30-year-old executive on Thursday said the exchange had only $4bn* in easily tradeable US dollar assets to cover a record $5bn surge of redemption requests on Sunday.
/jlne.ws/3UN8vhL
What Have We Learned From the FTX-Binance Debacle?; Instead of revolutionizing finance, crypto is largely repeating its mistakes. Let the buyer beware.
Bloomberg
Cryptocurrencies were supposed to usher in a new and better era of finance. Instead of relying on fragile, stodgy and often discriminatory banks for deposits, loans and the like, people could transact directly through platforms brilliantly designed to obviate the need for trust. If further evidence was required, the travails of cryptocurrency exchange FTX.com this week have demonstrated just how far from that ideal crypto remains.
/jlne.ws/3E2fFYA
Bankman-Fried Needs a Crypto Miracle to Rescue FTX; The slump in virtual currencies will deter potential saviors of the collapsed exchange.
Lionel Laurent - Bloomberg
Collapsed cryptocurrency exchange FTX was a magnet for the so-called smart money. Backers included the biggest names in finance and venture capital, from BlackRock Inc. to SoftBank Group Corp. to pension funds. Even after this summer's crypto crash, Ontario Teachers Pension Plan described its investment in the firm as "lowest-risk" - because it was the venue where "everybody else" traded. Now, with a shortfall of $8 billion to fill, nobody will touch FTX with a bargepole. Rival exchange Binance flirted briefly with a bailout and then walked away, arguing the uncertainty was too great. Sequoia Capital has marked the value of its $214 million stake down to zero. Assuming a value of $1 on Sam Bankman-Fried's main businesses, as per Bloomberg News estimates, his billions have evaporated.
/jlne.ws/3DZEXGR
The Role Regulators Played in the FTX Fiasco
Daniel Kuhn - CoinDesk
Does crypto need a backstop? Wednesday, in what in hindsight should be obvious, Binance pulled out of a tentative deal to buy out rival FTX, the crypto exchange founded by Sam Bankman-Fried that has lost just about everything following a bank run. Binance CEO Changpeng Zhao said after a preliminary review of FTX's books that the risks were too big, the holes in the exchange's balance sheet too large and the loss of investors' confidence "severe." That has left Bankman-Fried to search elsewhere for capital - a monumental ask, considering other exchanges have already turned down appeals for investments or mergers.
/jlne.ws/3A7QWRE
FTX Violated Its Own Terms of Service and Misused User Funds, Lawyers Say
Sandali Handagama - CoinDesk
Sam Bankman-Fried's embattled cryptocurrency exchange FTX may have misused customer funds in violation of its own terms of service, lawyers have told CoinDesk. FTX's downward spiral, which began after a CoinDesk article last week about its sister company Alameda Research's financials, prompted the exchange to halt customer withdrawals on Tuesday, indicating it did not have the required funds to cover all the crypto locked on its platform.
/jlne.ws/3WQtfaf
FTX Used Client Funds, FTT Tokens, and Robinhood Shares to Prop Up Alameda: Report
Andrew Asmakov - Decrypt
After Alameda Research suffered a series of losses in May and June this year, the trading firm's founder Sam Bankman-Fried set at least $4 billion in FTX funds to Alameda, according to a Reuters report citing people familiar with the operations. A portion of these funds reportedly were FTX customer deposits, two people told Reuters, although their exact value is unclear. Bankman-Fried did not tell other FTX executives about the move, the people said, adding he was afraid this information could leak. Another chunk of the funds used to prop up Alameda was secured by assets including FTT, the native token of the FTX crypto exchange, and shares in the trading platform Robinhood, per the report. Bankman-Fried purchased a 7.6% stake in Robinhood back in May.
/jlne.ws/3TrVFnW
FTX Has Made $34M in Trading Fees Since Recent FTT Token Burn Despite Withdrawal Freeze
Oliver Knight - CoinDesk
Cryptocurrency exchange FTX has made $34 million in trading fees since the last time it burned its native FTT token on Oct. 31 even though customers have been unable to withdraw funds this week. Customer withdrawals were frozen following a liquidity crunch that came after customers took out $6 billion in a 72-hour period. Despite this, the exchange has continued to operate. The company had been in talks with rival exchange Binance over a potential acquisition that now appears to have been scrapped.
/jlne.ws/3A4DzkY
Why the FTX collapse has plunged the crypto world into upheaval; A major cryptocurrency exchange's dramatic fall has prompted "existential questions" about the industry's reliability
Julian Mark - The Washington Post
The cryptocurrency world plunged into chaos this week with the stunning fall of FTX, a crypto exchange once valued at as much as $32 billion. Industry leader Binance backed out of a planned buyout on Wednesday after disclosing that a review of FTX's books had unearthed "mishandled customer funds" and amid news reports that U.S. regulatory agencies were circling the smaller exchange. The sudden collapse is being referred to as the crypto industry's "Lehman Brothers" moment - a reference to the once-mighty investment bank whose implosion helped spark the 2008 financial crisis. One expert even described it as nearly "apocalyptic" for the sector.
/jlne.ws/3TmwjYI
They're Not Your Keys, They're SBF's Keys
Michael P. Regan - Bloomberg
Of all the cute catchphrases the cryptocurrency generation has coined (pun intended), there's one that stands out after this week's chaos: Not your keys, not your coins. Translation for normies: Private keys are long strings of letters and numbers that play a role similar to passwords by proving ownership of an address on a blockchain. If you own a bunch of Bitcoin on a big crypto exchange - let's say, for example, oh, FTX - you don't necessarily own those keys. The exchange more than likely does. Your ability to access your crypto depends on the exchange's ability to send it to you. This is usually not a problem, until it is. And then it's a huge problem, as evidenced by this week's crisis of confidence in the exchange that triggered a panic of investors trying to get their hands on their crypto like a bunch of sailors grabbing gold doubloons on a sinking galleon.
/jlne.ws/3A4F16U
Coinbase cuts jobs again as cryptocurrencies extend fall
Reuters
Crypto exchange Coinbase Global Inc (COIN.O) cut over 60 jobs in its recruiting and institutional onboarding teams, a spokesperson said on Thursday, at a time when pummeled digital coins risk another contagion in the sector and bigger rival FTX inches closer to a collapse. The job cuts, the second time this year, follow a week after "crypto market headwinds" contributed to Coinbase's net loss of $544.6 million for the three months ended Sept. 30, compared to a profit of $406.1 million a year ago.
/jlne.ws/3DYlHcW
FTX Is Still Looking for Money; Solvency vs. liquidity, Alameda loans, some podcast foreshadowing and some Jefferies shade.
Matt Levine - Bloomberg
The obvious question - here and always - is: Is it a liquidity problem, or a solvency problem? Classically, if you are a bank, and you have $100 of perfectly good mortgages outstanding, $20 of cash in your vaults and $100 of deposits, and all the depositors show up one day asking for their money back, you don't have it. You have $20 of cash and they want $100. But you are good for it: You've got $100 of good mortgages, and when they get paid back you'll have plenty of money for your depositors. You are just not good for it right this minute. You are solvent - you have $120 of assets (loans plus cash) and $100 of liabilities (deposits) - but illiquid. This is It's a Wonderful Life.
/jlne.ws/3tjmT5A
FTX US Legal Chief Tells Staff He's Working to Preserve Platform; Not optimistic for a 'positive' outcome, Miller says in memo; Message to workers was sent on Slack channel, then deleted
Yueqi Yang - Bloomberg
FTX US general counsel Ryne Miller said in an internal memo he's working with advisers to preserve "whatever is preservable" of the crypto exchange. "We should not be optimistic for an outcome that is positive," Miller wrote. "I'm working with outside advisers to be best prepared to navigate FTX entities to next steps." Miller's message was sent to staff on a Slack channel Wednesday night and later deleted by a member of the founding team, according to a person familiar with the matter.
/jlne.ws/3tlyPUt
FTX Resumes Withdrawals After 2-Day Pause, Data Firms Say; Crypto exchange had halted withdrawals on Tuesday amid crisis; Blockchain data shows that withdrawals resumed this morning
Muyao Shen - Bloomberg
Troubled crypto exchange FTX.com resumed withdrawals on the platform, according to blockchain data, after halting such activities on Tuesday because of "liquidity crunches" cited by its co-founder Sam Bankman-Fried. The withdrawal activities halted around Tuesday morning in New York, according to Telegram messages on FTX.com's customer supporting group and blockchain data provided by data firm Nansen. At the time of publication, FTX.com appears to have fulfilled millions of dollars worth of withdrawal requests by users. Nansen and Kaiko, another blockchain data firm, both confirmed the resumed activities. FTX processed $8 million worth of withdrawals in an hour on Thursday, Nansen said.
/jlne.ws/3G3Q1pb
Crypto's future may be divided, not dead; The FTX saga is the equivalent of the Lehman Brothers shock in terms of re-evaluating the sector
Gillian Tett - Financial Times
Just when it seemed that cryptoland could not get any crazier - it has. Last week, Sam Bankman-Fried, the 30-year old wunderkind, oversaw an empire worth more than $32bn, composed of the FTX crypto brokerage and Alameda fund. He was a sports sponsor, philanthropist and backed by mainstream financiers such as BlackRock. Indeed, when I recently met "SBF" (as he is known) at a conference, he was thronged by Wall Street and Washington players. No longer. This week SBF revealed that FTX has seen $6bn in customer withdrawals, and tried (and failed) to sell itself to his arch-rival Binance, the biggest crypto exchange. Unless he can plug a reported $8bn liquidity hole, bankruptcy looms.
/jlne.ws/3UlHkuB
Hostaged FTX Funds Sold for Pennies on the Dollar in OTC Trades Among Customers
Tracy Wang - CoinDesk
Crypto traders with remaining funds on FTX are attempting to sell their account balances for fractions of their face value. Telegram chats facilitating small over-the-counter (OTC) markets viewed by CoinDesk reveal buyers are bidding about 10 cents to 15 cents on the dollar for the locked-up funds, while sellers are generally looking to offload their balances at around 20 cents to 33 cents. "Size for sale @ ... $0.20," read a Wednesday morning Tweet thread. "$0.15 in mid-size snap filled."
/jlne.ws/3DUhIOq
Silicon Valley Poured Money Into FTX, With Few Strings Attached; Investors moved swiftly to commit money to crypto exchange, putting aside some customary oversight safeguards
Eliot Brown, Peter Rudegeair and Berber Jin - The Wall Street Journal
A marquee roster of investors from Silicon Valley and Wall Street swarmed FTX. They invested nearly $2 billion with few strings attached and no oversight on the cryptocurrency exchange's board, promoting it as a safe bet. Now the backers are nursing a high-profile black eye as the three-year-old company-valued at $32 billion at its peak-teeters. Venture-capital firm Sequoia Capital said on Wednesday it is writing a $150 million investment one of its funds had in FTX down to zero because of solvency risk.
/jlne.ws/3TyaTHX
After Rattling Confidence in FTX, Binance Still Holds 5% of FTT Supply
Stacy Elliott - Decrypt
For all the snarky memes that flooded Crypto Twitter when Binance announced it would and then wouldn't buy FTX, it was still left holding a bag: 5% of the total FTT supply, now worth only $65 million. FTT is the native utility token for the FTX exchange, which grants holders trading fee discounts. It functions like a customer loyalty program. The more a user owns, the bigger the discount they get on their FTX trades. Or at least, that's how it used to work. A person familiar with Binance's due diligence of the FTX deal told Decrypt that the exchange was able to sell very little of its FTT before announcing that it had backed out of the FTX deal.
/jlne.ws/3UvhhkP
FTX crypto ETPs suffer precipitous falls; Three funds invest only in FTT, the digital token used on the FTX trading platform
Steve Johnson - Financial Times
Investors in three digital currency funds face the risk of being wiped out as the FTX crypto exchange teeters on the brink of collapse. The trio of exchange traded products are invested purely in FTT, the digital token of the FTX platform, which has plunged more than 80 per cent this week as a run on FTX has cast doubt over its survival. The VanEck FTX Token exchange traded note (VFTX), the 21Shares FTX Token ETP (AFTT) and the CoinShares FTX Physical FTX Token ETP (CFTT) had combined assets of €27.7mn as of October 31, according to data from Morningstar Direct, having launched between February and April of this year.
/jlne.ws/3fQPMmN
SoftBank Is Said to Expect About $100 Million Loss on FTX Stake
Min Jeong Lee - Bloomberg
SoftBank Group Corp. invested just under $100 million in the crypto exchange FTX.com and anticipates writing down the entire value of the stake, according to a person familiar with the matter.
/jlne.ws/3WV3Trx
How Meta went from a trillion-dollar company to mass layoffs
Daniel Howley - Yahoo! Finance
Meta's (META) recent mass layoff marks a turning point for a company whose business model once seemed untouchable despite years of controversies over privacy and Russian election interference. While some might blame Meta's fall on CEO Mark Zuckerberg's obsession with the immersive online world known as the metaverse, that's only one factor that helped send its stock price plummeting 70% in the last year. Other major blows include the rise of short-form video platform TikTok, Apple privacy changes that hurt advertising revenue, and a lack of Gen Z users.
/jlne.ws/3Eprbyw
One of Gaming's Most Hated Execs Is Jumping Into the Metaverse
Austin Carr, Jason Schreier, and Priya Anand - Bloomberg
John Riccitiello was on top of the metaverse. Last November the chief executive officer of Unity Software Inc. spilled the news to his staff during a Zoom town hall: The company was about to buy the technology division of WetaFX, the visual effects shop behind the Lord of the Rings and Game of Thrones movie and TV franchises. The $1.6 billion deal, Riccitiello believed, would give Unity the 3D development tools they needed to conquer all types of augmented and virtual realities, things like immersive digital worlds and hyper-realistic avatars. "We go from being a player in this space," he told employees, "potentially to being the leading artist platform for literally everything."
/jlne.ws/3UQ9fCz
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| Politics | | An overview of politics as it relates to the financial markets | FTX Collapse Sparks Alarm From US Lawmakers
Nikhilesh De - CoinDesk
The dramatic collapse of crypto exchange FTX has - perhaps naturally - sparked a number of calls for greater regulation or faster legislative action from leading U.S. lawmakers. FTX CEO Sam Bankman-Fried revealed earlier this week that his exchange had "liquidity crunches." Later reporting suggested FTX had comingled customer funds with Alameda Research, another company founded by Bankman-Fried. FTX has a nearly $10 billion hole and froze withdrawals on its exchange. FTX US, a related entity, similarly warned its customers that it may also freeze trading in the coming days.
/jlne.ws/3O21TKm
U.S. Downgrades Russia to Nonmarket Economy; Move aims to further isolate Moscow amid war in Ukraine, though its impact will be limited because of current trade restrictions
Yuka Hayashi - The Wall Street Journal
The Commerce Department said Thursday it has reclassified Russia as a nonmarket country from a market economy, a move aimed at further reducing bilateral trade and isolating Russia amid its continued war in Ukraine. The department said the decision follows significant increases in Moscow's intervention in economic activities since last year that have made its economy unpredictable and distorted, including in currency markets, labor relations and foreign investments. Russia joins 11 other nations that the U.S. classifies as nonmarket economies for the purpose of antidumping tariff calculation. The list includes China, Vietnam and former Soviet Union republics. Russia had moved off the list in 2002 as it pursued measures to liberalize its economy.
/jlne.ws/3UG5XCc
US Treasury Signals Acceptance of Some Currency Interventions; Refrains from designating any partners as forex manipulators; Says surging dollar driven mainly by US economic developments
Christopher Condon - Bloomberg
The US Treasury Department signaled that some recent interventions by trading partners in the foreign-exchange market can be justified, and acknowledged that a surging dollar is mainly being driven by developments in the American economy. The department made the comments in connection with the release of its semiannual report to Congress on macroeconomic and foreign-exchange policies of major US trading partners. The Treasury refrained from designating any US trading partner as a manipulator of its exchange rate for commercial purposes in that report.
/jlne.ws/3TnZVEV
Elon Musk Should Testify to EU Parliament on Twitter, Lawmaker Says; Lawmaker worries Twitter will become 'threat to democracy'; 'Why should I pay Elon Musk' for blue check?, in 't Veld says
Jillian Deutsch and Maria Tadeo - Bloomberg
Lawmakers are pushing Elon Musk to come to the European Parliament and reassure them that Twitter Inc. won't become a platform that threatens democracy. Sophie in 't Veld, a key member of the Committee on Civil Liberties, Justice and Home Affairs panel, said she is concerned about giving "free rein" to hate speech, the incitement of hatred and violence, disinformation seeking to influence elections.
/jlne.ws/3hBMKDr
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| Regulation & Enforcement | | Stories about regulation and the law. | FTX Assets Frozen by Bahamian Regulator
Nelson Wang - CoinDesk
Bahamian regulators have frozen the assets of FTX Digital Markets and related parties, calling it a "prudent course of action" to "preserve assets and stabilize the company," according to a press release on Thursday. The Securities Commission of the Bahamas also suspended FTX's registration and appointed an attorney - Brian Sims, a senior partner at Lennox Paton - as a provisional liquidator of the assets. FTX is based in the Bahamas and is a separate entity from FTX US.
/jlne.ws/3g3GfbM
FTX Latest: BlockFi Halt, SEC Probe, Asset Freeze Deepen Crisis
Bloomberg
Sam Bankman-Fried, founder of the embattled crypto exchange FTX, is being investigated by the US Securities and Exchange Commission for potential violations of securities rules. The Bahamas, where his FTX.com arm is based, froze the assets of a local trading subsidiary and "related parties." Troubled crypto lender BlockFi said it can no longer operate as usual, citing "a lack of clarity" in relation to FTX. Earlier, Bankman-Fried said he's closing Alameda Research, the trading house at the center of speculation about whether his crypto exchange mishandled customer funds.
/jlne.ws/3DQNHPy
FTX's Sam Bankman-Fried Faces SEC Probe as His Empire Crumbles; SEC investigates whether he violated securities rules; FTX.com, FTX US and Alameda Research under regulatory scrutiny
Lydia Beyoud and Olga Kharif - Bloomberg
Sam Bankman-Fried is being investigated by the US Securities and Exchange Commission for potential violations of securities rules as the regulator deepens its probe into his crumbling FTX crypto empire, according to a person familiar with the matter. FTX, the American platform FTX US, and Bankman-Fried's trading house Alameda Research are already under investigation by the SEC, Bloomberg News reported Wednesday. The Justice Department is also looking into the situation.
/jlne.ws/3fUPf2X
Tether freezing $46 million worth of FTX USDT at the request of law enforcement
MarketWatch
Tether freezing $46 million worth of FTX USDT at the request of law enforcement
Tether, a stablecoin issuer, has frozen $46 million worth of stablecoin USDT after a request from law enforcement, according to a Tether executive that spoke to CoinDesk. The frozen wallet belonged to crypto exchange FTX, according to Tronscan data. "While we cannot specifically comment, Tether routinely has an open dialogue with law enforcement agencies, including the U.S. Department of Justice, as part of our commitment to cooperation, transparency, and accountability," said a Tether spokesperson in an email to MarketWatch.
/jlne.ws/3DUfYES
SEC gets more support in XRP lawsuit against Ripple
Timmy Shen - Forkast
Three more companies and organizations have requested to weigh in on the ongoing lawsuit the U.S. Securities and Exchange Commission (SEC) filed in 2020 against Ripple Labs Inc. Sports investing group New Sports Economy Institute and investment consultancy Accredify, also known as InvestReady, this week filed a motion to submit an amicus brief in support of the SEC.
/jlne.ws/3UQSiYG
California Announces Investigation Into 'Apparent Failure" of Crypto Exchange FTX
Andrew Asmakov - Decrypt
California's Department of Financial Protection and Innovation (DFPI) is investigating the "apparent failure" of the embattled crypto trading platform FTX. DFPI is responsible for administering the state's lending and banking laws, as well as the state's consumer financial protection law and securities laws, which govern broker-dealers, investment advisers, and commodities. "We expect any person offering securities, lender, or other financial services provider that operates in California to comply with our financial laws," the agency said in a statement Thursday.
/jlne.ws/3A5nfjW
The SEC Beat LBRY. Will It Go After Exchanges Like Coinbase Next?
Sander Lutz - Decrypt
On Monday, the Securities and Exchange Commission decisively defeated the blockchain-based content sharing and publishing platform LBRY in a federal lawsuit. A court determined the company committed securities violations when it launched and sold its native token LBC. Despite the ensuing anguish in crypto circles, LBRY's loss on Monday was not a huge shock to legal experts. But seemingly minuscule nuances in the ruling's language-the details that reveal how the crypto company lost its case-could have dramatic consequences for the regulatory fate of much of the crypto industry.
/jlne.ws/3tjmvUO
U.K.'s Serious Fraud Office's Director to Depart Next Year; Lisa Osofsky's tenure has been marked by controversy over the agency's handling of a bribery case against Unaoil Group
David Smagalla - The Wall Street Journal
Lisa Osofsky, director of the U.K.'s Serious Fraud Office, will leave her job in August 2023 after completing her five-year tenure with the white-collar crime prosecuting agency, according to a person with knowledge of the SFO's plans. The U.K. attorney general's office will start its search for her successor immediately, the person said in an email, adding that Ms. Osofsky will remain in her job for a short period after her tenure ends if needed.
/jlne.ws/3ErbE1v
Viatris Executive Charged in Insider-Trading Scheme Allegedly Netting Millions; Prosecutors and regulators say healthcare company executive tipped friend to company's drug approval
Dave Michaels - The Wall Street Journal
A top technology executive at the healthcare company Viatris Inc. was charged with sharing illicit stock tips that netted millions of dollars for a friend who traded on them, according to the Justice Department. Ramkumar Rayapureddy, the global chief information officer at Viatris, shared undisclosed information about a regulatory drug approval, his employer's financial results and a planned merger with a division of Pfizer Inc., authorities said. When he worked at Mylan NV, a predecessor company to Viatris, Mr. Rayapureddy allegedly leaked the information to a friend, Dayakar Mallu, according to an indictment.
/jlne.ws/3G3BaLn
SEC Chair Gensler slams "non-compliant" crypto industry amid FTX turmoil- CNBC
Reuters
Crypto investors need better protection in a space that is "significantly non-compliant" despite clear regulations, U.S. Securities and Exchange Commission Chair Gary Gensler said in an interview to CNBC on Thursday. "The runway is running out. Investors around the globe are getting hurt," he said while calling for cooperation from crypto companies.
/jlne.ws/3NXe9LU
FTX Japan to Go Into 'Close-Only' Mode Following Regulator's Order to Suspend Operations
Sandali Handagama - CoinDesk
FTX Japan said Thursday it is going into "close-only" mode, meaning users will only be able to close out existing positions but not initiate new ones, following an official order earlier in the day by Japan's Financial Services Agency to suspend operations.
/jlne.ws/3UvwL8b
Crypto Conglomerates Require 'Urgent Regulatory Attention,' European Watchdogs Say
Jack Schickler - CoinDesk
European financial stability watchdogs on Thursday called for urgent action to regulate crypto conglomerates, as markets reel from the apparent collapse of major exchange FTX. The message from the Financial Stability Board's (FSB) European chapter is the latest signal that market turmoil will mean sweeping new rules for the sector, given its increasing sway over conventional financial markets.
/jlne.ws/3X5rN3Y
FTX to Have EU Operating License Suspended by Cyprus Regulators
Georgios Georgiou and Emily Nicolle - Bloomberg
Cyprus is planning to suspend FTX.com's two-month-old license, which allows the troubled crypto exchange to operate throughout Europe, people with knowledge of the matter said. An announcement on the decision could come as soon as Friday, said the people, who asked not to be named discussing internal deliberations. FTX said in September that it received the permit from the Cyprus Securities and Exchange Commission, covering the EU as well as Norway, Iceland and Lichtenstein.
/jlne.ws/3WMjwSa
Commissioner Pham to Speak on Panels at the Milken Institute Middle East and Africa (MEA) Summit
CFTC
Commissioner Caroline D. Pham will speak on the opening panel with business executives and other leaders, titled "US Overview: What's Next for the American Economy?" She will also speak on the panel "Exploring the Great Migration of the Internet from Web2 to Web3."
/jlne.ws/3Tr5ouL
Chairman Behnam to Keynote at Bloomberg's The Final Chapter for USD LIBOR
CFTC
Chairman Rostin Behnam will keynote at Bloomberg's The Final Chapter for USD LIBOR.
/jlne.ws/3A5ZE2L
Commissioner Pham to Participate in a Regulators Summit and Speak on a Panel at Abu Dhabi Finance Week
CFTC
Commissioner Caroline D. Pham will participate in The Regulators Summit, a discussion on consequential issues in world finance. She will also speak on the panel "How are Regulators Responding to Innovation?"
/jlne.ws/3WVJ3s8
Statement of Commissioner Summer K. Mersinger Regarding CFTC Open Meeting on November 10, 2022
CFTC
Thank you to the Chairman for calling today's open meeting, my fellow commissioners for their engagement, and the staff of the Commodity Futures Trading Commission (CFTC or Commission) for their hard work and dedication in preparing the items that we are considering today.
/jlne.ws/3Uv3M4r
Commissioner Goldsmith Romero to Participate in a Panel Discussion at FIA Expo 2022
CFTC
Commissioner Christy Goldsmith Romero will participate in a panel discussion on the topic, Regulatory Battlegrounds, at FIA Expo 2022.
/jlne.ws/3G94ose
CFTC Approves a Proposed Rule and a Proposed Order and Request for Comment
CFTC
Today, the Commodity Futures Trading Commission voted to advance two proposals. The first is a proposed rule on reporting and information requirements for derivatives clearing organizations (DCOs). The second is a proposed order and a request for comment on an application for a capital comparability determination submitted on behalf of nonbank swap dealers subject to regulation by the Mexican Comision Nacional Bancaria y de Valores.
/jlne.ws/3huEBjY
Statement of Commissioner Christy Goldsmith Romero on a Proposed Comparability Determination for Capital; Promoting the Resilience of Swap Dealers in Mexico Through Strong Capital Requirements and Financial Reporting
CFTC
I support the Commission considering efforts to safeguard the resilience of swap dealers, including through the proposed capital comparability determination for Mexico. The proposal recognizes that strong capital requirements are essential to ensure a swap dealer's safety and soundness, and that cross-border coordination with a like-minded regulator can promote financial stability. I commend the staff for their hard work on today's proposal - and thank them for working closely with me and my office on changes to improve the proposal.
/jlne.ws/3NVhJGz
The Agricultural Advisory Committee to Meet on December 7
CFTC
The Agricultural Advisory Committee (AAC) will hold an in-person public meeting on Wednesday, December 7 from 9:00 a.m. to 12:45 p.m. (ET) at the Commodity Futures Trading Commission's Washington, D.C. headquarters. Chairman Rostin Behnam, who is the sponsor of the AAC, also welcomes the new and returning AAC members. This will mark the first AAC meeting with these members under Chairman Behnam's sponsorship.
/jlne.ws/3O5363p
NFA orders Chicago, Ill. introducing broker Stage 5 Trading Corp. to pay a $75,000 fine
NFA
NFA has ordered Stage 5 Trading Corp. (Stage 5) to pay a $75,000 fine. Stage 5 is an introducing broker (IB) Member of NFA located in Chicago, Illinois.
The Decision, issued by NFA's Business Conduct Committee (BCC), is based on a Complaint issued by the BCC and a settlement offer submitted by Stage 5, in which the firm neither admitted nor denied the allegations in the Complaint. The BCC's Complaint charged Stage 5 with doing business with an unregistered forex IB and using a website that did not distinguish clearly between Stage 5 and the unregistered forex IB. The Complaint also charged Stage 5 with failing to diligently supervise the firm's forex operations.
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SEC Charges Pharmaceutical Co. Chief Information Officer in $8 Million Insider Trading Scheme
SEC
The Securities and Exchange Commission today announced insider trading charges against Ramkumar Rayapureddy, Chief Information Officer of pharmaceutical company Viatris Inc., which was formerly known as Mylan N.V.
/jlne.ws/3EnRZiF
SEC Announces Additional Charges in Scheme to Trade Ahead of Pharma Tender Offer
SEC
On November 10, 2022, the Securities and Exchange Commission filed insider trading charges against Brian Wong of Secaucus, New Jersey for trading on inside information tipped to him by his brother, Brandon Wong. The SEC previously charged Brandon Wong and his source, Seth Markin, with insider trading on July 25, 2022.
/jlne.ws/3NZyKzt
SEC Seeks Special Master to Oversee Return of Remaining Funds to Harmed Investors of the Infinity Q Mutual Fund
SEC
The Securities and Exchange Commission today filed a settled action against the Infinity Q Diversified Alpha Mutual Fund for mispricing its net asset value, or "NAV," as part of a massive overvaluation scheme, and is seeking in its complaint an order appointing a Special Master over the mutual fund to oversee the return of remaining funds to harmed investors.
/jlne.ws/3UuWtda
Husband and wife banned from providing financial services
ASIC
Former financial adviser Richard Thomas Marshall has been banned from providing financial services for six years and his wife, Gwenda Jean Marshall, has been banned for three years.
An ASIC delegate found Mr and Mrs Marshall carried on a financial services business without holding an AFS licence from July 2015 until May 2021.
/jlne.ws/3tmAau9
Administrative Actions against FTX Japan, Inc.
FSA
The Kanto Local Finance Bureau today issued an Order to Suspend Business and a Business Improvement Order to FTX Japan, Inc.（Chiyoda City, Tokyo; corporate number: 7010401115356; Crypto-asset Exchange Service Provider; Type I Financial Instruments Business Operator; hereinafter the "Company"）pursuant to the provisions of Article 63-17, paragraph (1) and Article 63-16 of the Payment Services Act, and also issued an Order to Suspend Business, an Order of Retention of Assets with in Japan and a Business Improvement Order to the Company pursuant to the provisions of Article 52, paragraph (1), Article 56-3 and Article 51 of the Financial Instruments and Exchange Act, respectively.
/jlne.ws/3WVisvy
Wong King Hoi jailed for obstruction of SFC's search operation
Securities & Futures Commission of Hong Kong
The Eastern Magistrates' Court today sentenced Mr Wong King Hoi to two weeks of imprisonment after his conviction of the offence of obstructing employees of the Securities and Futures Commission (SFC) in the execution of a search warrant following a prosecution brought by the SFC. Wong was ordered to pay the SFC's investigation costs (Notes 1 & 2).
This is the first case that a person is convicted for obstructing the SFC's employees in performance of their functions empowered under the SFO.
/jlne.ws/3Eo1IFO
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Dollar Suffers Biggest Plunge Since 2009 as CPI Smacks Fed Bets; Yen gains almost 4%, leading gains among developed peers; Yen, rand can outperform as dollar weakens, says HSBC
Bloomberg
The dollar had its worst day since 2009 after Thursday's US inflation report surprised traders with slower growth in consumer prices, driving speculation that the Federal Reserve will ease the pace of its interest-rate increases. The Bloomberg Dollar Spot Index fell 2% after a key inflation gauge cooled in October by more than expected, the biggest drop since 2009. The consumer price report offered hope that the fastest price gains in decades are ebbing and giving Federal Reserve officials room to slow down amid an aggressive tightening campaign. Traders dialed back expectations to how high they expect rates to go before the Fed stops hiking, the so-called terminal rate of the cycle.
/jlne.ws/3UrzQGl
Stocks Skyrocket in Best Post-CPI Day on Record: Markets Wrap; Nasdaq 100 jumps 7.5% in biggest daily gain since March 2020; Yields plunge, dollar gauge tumbles most in more than decade
Stephen Kirkland - Bloomberg
Stocks surged in a buy-everything relief rally after slower-than-projected price growth spurred bets the Federal Reserve can downshift its aggressive rate-hike path. The S&P 500 climbed 5.5% for the best first-day reaction to a CPI report since at least 2003 when records began. About 96% of stocks in the benchmark were in the green, the broadest advance since Oct. 4, according to Bloomberg data. The rally caught short-sellers wrong-footed, helping spur the outsized gains. Crypto markets stabilized despite the turmoil surrounding crypto exchange FTX.
/jlne.ws/3A8uacd
Dow Jones Surge Puts Index Within Sight of Bull-Market Territory; The blue-chip gauge is up 17% from its low in September; Index is down 7.2% in 2022, compared with 17% drop in S&P 500
Elena Popina - Bloomberg
The Dow Jones Industrial Average is within reach of a big milestone as stocks surged in a buy-everything relief rally. The blue-chip stock gauge gained 3.7% on Thursday -- the most since May 2020 -- advancing 17% from its Sept. 30 low. That's not far from the 20% threshold that some investors say signals the beginning of a bull-market cycle.
/jlne.ws/3UsTPol
Invest for good - put thoughts into actions; Legislation must give people a voice in shareholdings and pensions
Moira O'Neill - Financial Times
After seeing world leaders in Egypt this week hammering out agreements on cutting carbon emissions, you may have made a mental note to invest for the good of the planet. But will you put those thoughts into action? Unless you pay a professional adviser to select investments, I doubt you will.
/jlne.ws/3TnKZqs
First Came the Crypto Crash. Now Comes the Taxman; Cryptocurrency investors may need to act within the next few weeks to reduce their tax bill-and get ahead of an increasingly aggressive IRS
Laura Saunders - The Wall Street Journal
The rout in cryptocurrencies worsened this week with the collapse of the offshore exchange FTX. With bitcoin recently down more than 60% in 2022, many crypto investors would surely like to forget about digital assets, at least for now. That would be a mistake. The Internal Revenue Service hasn't lost interest in cryptocurrencies, and investors need to focus on key tax issues before year-end.
/jlne.ws/3UsmVUQ
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Session 2: The role of stock exchanges in promoting innovative climate solutions
UN Sustainable Stock Exchange Initiative (SSE) - YouTube
This session will focus on a system thinking approach to innovative climate solutions that can be promoted and financed via exchanges.
/jlne.ws/3NXgqqq
Session 7: The Role of exchanges in creating a net zero world
UN Climate Change Events - YouTube
UN Sustainable Stock Exchange Initiative, International Organization of Securities Commissions(IOSCO) and UN Climate Change Global Innovation Hub.
/jlne.ws/3NXhbQi
Blue Wins in Governor's Races Lift the Hopes of US Climate Advocates; Bucking an expected red wave, Democratic candidates with plans and track records on climate prevailed in several midterm contests.
Zahra Hirji - Bloomberg
Climate-literate blue governors - a mix of incumbents and upstarts - will be taking office around the Midwest and Northeast just as more federal money than ever is available for tackling climate change, pointing to a possible new wave of state-level action. That's one outcome of the 2022 midterm elections that took climate activists by surprise, happily.
/jlne.ws/3g0fg0T
After Decades of Resistance, Rich Countries Offer Direct Climate Aid; Several European leaders at COP27 announced funds to help poor nations recover from loss and damage caused by climate change. The United States was silent.
David Gelles - New York Times
For 30 years, developing nations have been calling for industrialized countries to provide compensation for the costs of devastating storms and droughts caused by climate change. For just as long, rich nations that have generated the pollution that is dangerously heating the planet have resisted those calls. At the United Nations climate summit last year, only Scotland, the host country, committed $2.2 million for what's known as "loss and damage." But this week, the dam may have begun to break.
/jlne.ws/3UN3OEx
Who's Driving Climate Change? New Data Catalogs 72,000 Polluters and Counting; A nonprofit backed by Al Gore and other big environmental donors says it can track emissions down to individual power plants, oil fields and cargo ships.
Raymond Zhong - NYT
Upstream from Shanghai along the Yangtze River, a sprawling factory complex in eastern China is churning out tens of millions of tons of steel a year - and immense quantities of planet-warming gases. The plant's owner has not disclosed how much the site emits. Now, though, researchers say that by peering down from space, they have found that the factory's emissions are likely higher than those of any other steel plant on Earth.
/jlne.ws/3G4ZyME
World's CO2 Hotspots Pinpointed by Al Gore-Backed Climate Project; With maps and data on 72,000 power plants, oil refineries, airports and more, the new website Climate Trace aims to offer "radical climate transparency."
Eric Roston - Bloomberg
A consortium of dozens of research nonprofits on Wednesday launched a free online platform that details greenhouse gas emissions around the world across 20 economic sectors. Climate Trace, which can be viewed on a web browser, includes a zoomable world map that displays and ranks the dirtiest 72,000 power plants, oil refineries, airports, ships and more. The group used satellite imagery and machine learning as well as more conventional techniques to build what it says is the largest available source of greenhouse gas emissions data.
/jlne.ws/3tsTRjT
Biden Tightens Planned Methane Curbs on Oil Wells, Flaring; EPA plan unveiled as president touts climate action in Egypt; Expanded requirements target all wells, regardless of size
Jennifer A Dlouhy - Bloomberg
The Biden administration is strengthening its plan for limiting methane emissions from oil and gas wells after environmentalists panned an earlier version as too weak. The Environmental Protection Agency advanced the supplemental proposed rule on Friday, hours before President Joe Biden was set to tout US efforts to fight climate change at the COP27 summit in Sharm el-Sheikh. The proposed regulation would require energy companies to do more to stifle leaks.
/jlne.ws/3A8GdGC
New SEC Rules to Shed Light on BlackRock, Vanguard ESG Votes; New rules require funds to identify ESG proxy votes; Old regulations brought inconsistent disclosures, SEC says
Andrew Ramonas - BloombergLaw
New SEC requirements for BlackRock, Vanguard and other mutual fund companies to provide greater detail on their proxy voting records are poised to help socially conscious investors hold them accountable for their pledges on climate, diversity and other ESG priorities. The Securities and Exchange Commission on Nov. 2 adopted rules that direct funds to give more information about their votes on environmental, social and governance issues, executive pay and other proposals considered at companies' annual meetings. BlackRock Inc. and Vanguard Group Inc., which have promoted ESG investing, generally supported the enhanced disclosure, though SEC Republicans questioned whether the regulations were necessary.
/jlne.ws/3O1ow1y
As SEC works to finalize climate rule, both sides make their case; Lawmakers weigh in on small-business effect
Ellen Meyers - RollCall
Supporters and opponents of climate-related financial risk disclosure made a last push to influence the Securities and Exchange Commission as the agency works on finalizing its controversial rule, a process that could take months. Companies, industry associations and lawmakers sprinted to make their case in letters to the agency by Nov. 1, the new deadline after the SEC reopened this and several other rule-makings following a technical glitch that caused some comments to go unrecorded.
/jlne.ws/3UBfOtm
A Checklist to Tell If Your Portfolio Is Guilty of Greenwashing
Jacqueline Poh - Bloomberg
The boom in so-called ESG investing has been accompanied by a sharp rise in complaints about greenwashing -- exaggerations or misleading statements about environmental claims. It's a rise driven by the so-called "greenium" -- the money companies can save by convincing lenders to offer better terms when borrowing is tied to an ESG (environmental, social or governance) goal. Figuring out what's real and what isn't has grown even more complicated in debt markets, where a host of new lending formats have been introduced, including some that link payment terms to progress on specific ESG goals. Here are some factors to keep in mind to help you figure out if your money is really doing what was promised.
/jlne.ws/3hzGonZ
ESG Funds Seen Underperforming Broader Market in 2023: Survey; About 65% of those surveyed by Bloomberg expect the investment group to trail competing benchmark indexes.
Saijel Kishan - Bloomberg
The debate over whether investing with ESG principles in mind makes money is one that's grown in recent years as the global market for sustainable funds has ballooned to more than $2.2 trillion. Market data show that the average equity fund adhering to environmental, social and governance factors has lost slightly less money this year than products that track vanilla benchmark indexes such as the S&P 500. A review of the longer-term record also supports the notion that ESG funds can outperform. About 56% of US sustainable funds beat rival category groups in the three-year period ended Sept. 30, according to researchers at Morningstar Inc.
/jlne.ws/3Tuupp1
Kerry's Climate Credit Plan Risks Payouts for Carbon-Cutting Mirage; Experts in carbon markets pushed back against a new initiative brought to COP27 by the US envoy
Jennifer A Dlouhy and Akshat Rathi - Bloomberg
US climate envoy John Kerry arrived at the United Nations summit in Egypt with a new plan to expand the sale of carbon credits in order to boost renewable projects in developing countries. But carbon-market experts and environmentalists warned in interviews that it mirrors a failed offset system created decades ago, and his framework has already been panned for potentially allowing corporate money to flow to green projects that would have happened anyway. That means the funding marshaled by Kerry would be unlikely to reduce greenhouse gas, these people said, unless it is backed up by major restrictions and much deeper analytical work.
/jlne.ws/3UvUgOv
ESG Strategy: Think Regulation, Data, and Budget
Matt Calabro - TabbForum
Investment managers considering offering ESG strategies need to establish an effective ESG framework and implement a tailored solution. In this article, Matt Calabro, Executive Director, Compliance Services, CSS, a Confluence company, offers three critical points to remember. Sustainable investing disclosures in the U.S. are currently governed by general fraud prohibitions in advertising and not by formally defined rules, apart from interpretive guidance issued by the SEC in 2010 about certain material impacts caused by climate change. In the absence of ESG regulations, investment managers have latitude to define relevant ESG factors when marketing their strategies. Such lack of standards can lead to "greenwashing "- or making claims that a strategy is more sustainable than it is.
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Jefferies CEO Says He Offered FTX's Bankman-Fried Rescue Advice in July; Rich Handler says he spent months trying to meet Bankman-Fried; Executive hoped to tout his firm's restructuring expertise
Harry Wilson - Bloomberg
Jefferies Financial Group Inc. Chief Executive Officer Rich Handler reckons he could have helped FTX.com avoid its current troubles if only Sam Bankman-Fried had taken his meeting earlier this year. "Do you know Sam Bankman-Fried? He seems in over his head and could quickly be in a precarious position," Handler wrote in a July 7 email to an unidentified colleague that the banking executive posted on his personal Twitter account. "Our expertise in rescuing financial services companies might make it worthwhile to meet w him and begin a relationship. Just a thought."
/jlne.ws/3TrXNfq
Russian Bank in Heart of EU Lays Off Half of Workforce; East West Bank said to have faced 'unprecedented' challenges; Bank provided wealth management advice to Russian clients
Stephanie Bodoni - Bloomberg
East West United Bank, one of the biggest Russian lenders in Luxembourg, will cut about half of its workforce amid "unprecedented challenges" following the Kremlin-led invasion of Ukraine. The bank, which was established in the Grand-Duchy in 1974, reached an accord to help protect its remaining staff and keep operating, Luxembourg's main trade unions said in a joint statement on Thursday. Between 32 to 44 of the bank's 80 employees will be let go.
/jlne.ws/3DYS8YD
Deutsche Bank Staff in Germany to Get Extra €1,500 for Inflation
Steven Arons - Bloomberg
Deutsche Bank AG agreed to pay employees in Germany an extra €1,500 ($1,500) this year to help them deal with the current high inflation. The payment will be made on top of December wages and apply to staff covered by collective wage agreements in the country, according to a memo seen by Bloomberg News and confirmed by spokesman. The payment, which confirms a previous report by Bloomberg, puts Deutsche Bank in line with several other lenders in the country that announced similar measures, including crosstown rival Commerzbank AG. Germany's inflation rate hit 11.6% in October, the highest in about seven decades.
/jlne.ws/3hoamLo
Fund Manager Gagliardi Faces Block-Trading Probe, Ex-Employer Says; Ex-employer sued Gagliardi over pay dispute, citing US probe; Gagliardi's attorney says he denies all allegations in suit
Sridhar Natarajan and Ava Benny-Morrison - Bloomberg
A lawsuit filed by the hedge fund Evolution Capital Management says that federal authorities are probing the activities of Robert Gagliardi, a former fund manager at the firm, as part of a criminal investigation into block trading. Evolution, which said in its filing that US Marshals seized Gagliardi's mobile phone last year in connection with the probe, added that it received a subpoena from the Securities and Exchange Commission earlier this year that was "clearly focused in large part upon Gagliardi," the complaint said. The fund, which also goes by ECM, is suing Gagliardi in New York state court over a pay dispute.
/jlne.ws/3tkeTRJ
Bank of England to start unwinding £19bn emergency bond-buying position; Gilts bought in wake of ill-fated Truss 'mini' Budget to be sold from end of November
Delphine Strauss - Financial Times
The Bank of England will start unwinding the emergency gilt-buying programme it embarked on in the wake of the Truss government's ill-fated "mini" Budget by the end of this month, in line with its earlier insistence that its intervention was a strictly temporary measure. The central bank bought UK government bonds worth £19.3bn between 28 September and 14 October, as it battled to prevent "fire sales" by pension funds during the market turmoil sparked by the then-government's announcement of unfunded tax cuts. That included £12.1bn of long-dated conventional gilts and £7.2bn of index-linked gilts.
/jlne.ws/3hxOHk2
Wells Fargo is opening its first-ever new branch in the Chicago market, with a location in the retail portion of the swanky One Chicago residential tower in River North.
Crain's Chicago Business
The nation's fourth-largest bank is opening a new branch next year in JDL's One Chicago building, its first significant retail move here since acquiring a modest franchise in 2010.
/jlne.ws/3EnYv9e
Goldman teams up with MSCI and Coin Metrics for digital asset classification and benchmarks; Goldman is working with MSCI on benchmarks and Coin Metrics for market data on a wide universe of digital currency specialists
Steve Gelsi - MarketWatch
In the equities market, it's easy to hunt out sub-sectors through various indexes, ETFs and benchmarks to help investors weigh risks and prospects, say in energy, consumer staples or biotech. With the wide world of digital currencies, this clear look at segments of the roughly $1 trillion ecosystem has been more difficult for institutional investors.
/jlne.ws/3A3pPHi
Ontario Pension says any loss from FTX investment to have limited impact
Divya Rajagopal - Reuters
The Ontario Teachers Pension Plan (OTPP) said on Thursday it had invested a total of $95 million to the troubled cryptocurrency exchange FTX and any financial loss from the exposure will have limited impact on the pension plan. OTPP, Canada's No. 3 pension fund, said it made the investments in FTX International and FTX U.S. exchange through its Teachers' Venture Growth fund, representing less than 0.05% of the pension fund's total net assets, it said.
/jlne.ws/3tmr5Bz
Credit Suisse Won't Be Profitable Before 2025, Moody's Says
Steven Arons and Myriam Balezou - Bloomberg
Credit Suisse Group AG investors should brace for billions of dollars in losses before the troubled Swiss lender's sweeping restructuring plan eventually leads to modest profitability in 2025 -- and that's only if it can overcome steep risks, according to Moody's Corp.
/jlne.ws/3UNTaNX
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Covid-19 Infections Fall in All UK Nations for First Time Since Summer
Ian Jones - Press Association
Covid-19 infections have fallen in all four UK nations for the first time in nearly three months, in fresh evidence the latest wave of the virus has peaked. Hospital numbers are also continuing to drop across the country, with health experts praising the autumn booster campaign for helping to prevent high levels of serious illness.
/jlne.ws/3hyRVE7
California Sues 3M and DuPont Over PFAS Chemicals; The suit alleges manufacturers of 'forever chemicals' knew for decades they were harmful to humans and the environment Christine Mai-Duc and Kris Maher - The Wall Street Journal
California is suing 3M Co. and DuPont de Nemours Inc. along with other manufacturers of PFAS, a collection of chemicals that have been linked to health issues including cancer and are commonly found in consumer products such as fabrics, food packaging and cookware. The complaint, filed in Alameda County Superior Court Thursday, alleges that a total of 18 defendant manufacturers made products containing PFAS, commonly known as "forever chemicals," for decades even though they knew they were toxic and harmful to humans and the environment. Several other states, including North Carolina and New York, previously filed lawsuits against PFAS manufacturers.
/jlne.ws/3fXEfC1
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | How a liquidity crunch in South Korea began at Legoland; Policymakers struggle to contain defaults as rate rises put pressure on emerging markets
Song Jung-a and Christian Davies - Financial Times
South Korean companies are struggling to refinance maturing debts after a sell-off was triggered by the default of a Legoland theme park developer and the announcement by a midsized insurer that it would not exercise a call option on its perpetual notes. Yields on top-rated five-year Korean corporate debt have surged 157 basis points in the three months through October - the worst spike on record - with widening credit spreads accounting for about one-third of the move. The country's offshore bonds, seen as a relatively safe bet in the region, are seeing spreads widen, while the cost to insure five-year sovereign debt against default has almost doubled since mid-September.
/jlne.ws/3WUYuB2
Gas Station Owner Who Sold Powerball Ticket Gets $1 Million Payday; The 74-year-old Californian plans to share the money with his children and grandchildren.
Mackenzie Hawkins - Bloomberg
The winner of the $2.04 billion Powerball jackpot hasn't come forward yet to claim their prize, but another Golden State resident has already had his payday: Joseph Chahayed, the 74-year-old gas station owner who sold the winning ticket. Under California's Powerball rules, retailers who sell the winning ticket are awarded 0.5% of the headline prize, with a cap of $1 million. The owner of Joe's Service Center in Altadena, California, who told the Los Angeles Times that he goes by the nickname "Papa Joe," will take home the maximum amount because of the size of this week's record-breaking jackpot.
/jlne.ws/3G4Sz6r
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| Miscellaneous | | Stories that don't quite fit under the other sections | Amazon's New Warehouse Robot Could One Day Replace Humans; 'Sparrow' to advance safety in injury-plagued facilities; Company also unveiled new, slimmed-down drone design
Matt Day - Bloomberg
Amazon.com Inc. has developed a robot capable of identifying and handling individual items, a milestone in the e-commerce giant's efforts to reduce its reliance on the human order pickers who currently play a key role in getting products from warehouse shelves to customers' doorsteps. The robotic arm, tipped by a set of retractable suction devices, is called Sparrow. In demonstrations on Thursday, the machine autonomously grabbed items of different sizes and textures from a plastic tote and placed them in other receptacles. Amazon said the bot is capable of handling millions of different products.
/jlne.ws/3G86NDI
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