| March 28, 2023 | "Irreverent, but never irrelevant" | | | | John Lothian
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Hits & Takes
John Lothian & JLN Staff
Shortly after JLN was published yesterday, the CFTC dropped a big press release bomb on Binance, with charges of "Willful Evasion of Federal Law and Operating an Illegal Digital Asset Derivatives Exchange." The case is brought in the U.S. District Court for the Northern District of Illinois, so JLN should have the opportunity to get a front row seat for any trial, should it occur. Binance and its CEO and founder Changpeng Zhao are denying the charges, according to a Forkast story, saying the CFTC complaint "appears to contain an incomplete recitation of facts."
Sam Bankman-Fried and prosecutors agreed to a new bail agreement that keeps SBF out of jail pending his trial and gives the notorious bad boy very limited electronic tools, Reuters reported. He gets a cellphone without internet access, only phone and texting capabilities. He gets a laptop with limited functions and he is restricted from the administration capabilities, so he can't try a work around. His parents had to sign an agreement they would not share their phones with him or bring prohibited devices into the house. Why do I get the impression Sam can reprogram an old VHS machine to surf the internet? Sam should be prevented from watching reruns of the television shows MacGyver or Gilligan's Island. Between MacGyver and the Professor, I am sure Sam would learn how to turn household items into useful communication devices.
Employers have finally figured out what it takes to get employees back to the office, according to a Bloomberg story. The answer is coffee. The title of the story is "Is Coffee Bringing People Back to the Office?" and the subheadline is "Data show workers are staying in the office for coffee and here's why it may be part of return to office strategies." Coffee has a history of improving productivity, so this should not be a surprise. Maybe the high priced coffee machines in the office are better than the ones at home and you can't beat "free."
One of the discussions I had during my recent FIA Boca conference experience was with a former CFTC commissioner who was talking about how the SEC has a historical society, but the CFTC does not. Of course, JLN is in some ways the industry historical body with our various video series and MarketsWiki. But she had a point. The SEC Historical Society does a good job of posting little historical facts on LinkedIn about events in SEC's past. Today, it has a story in LinkedIn about how "This week in 1961, William L. Cary became chairman of the SEC. During his short tenure, Cary revitalized the Commission, reorganizing the American Stock Exchange, boosting enforcement, expanding the definition of insider trading, and launching the Special Study of the Securities Markets."
In a longer post on the Historical Society website titled "The Bright Image: The SEC, 1961-1973, it talks about how Cary wanted additional funding for the SEC and how the commission had been through "budget starvation" during the Eisenhower years. Some themes just never go away.
Later today we will publish JLN's interview with CME Group Chairman and CEO Terry Duffy from FIA Boca. We had some technical difficulties with the interview as one of the SSD cards in one of the camera's failed, so we only have one angle for the interview. Of course, that camera also had the wireless microphone plugged into it, so we are using the backup audio from a small shotgun mic on camera two. This same problem affected several day one afternoon videos.
The same SSD card also cost us an interview with a representative from Microsoft we shot on Thursday, after our normal video schedule was over. We only shot this interview with one camera and it had the bad SSD card in it, which we did not know about until after the interview. Things happen when you shoot video or record audio, which is why we use redundant tools to record both. As the saying goes, I am not paranoid, I know something is going to go wrong.
Today I am getting my home's network upgraded and better cybersecurity put in place. The network hubs will be faster, which will be great. It is amazing how fast technology changes and how you have to keep pace with it.
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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Gain Small-Cap Exposure with Options on the Russell 2000 Index
Learn why small-cap indexes like the Russell 2000 have historically outperformed large-cap counterparts, and how an options strategy can help you manage your risk while expressing an opinion on the index.
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US Spy Agency Cyber Chief Warns TikTok Is China's 'Trojan Horse'
Margi Murphy - Bloomberg
Rob Joyce, the head of the US National Security Agency's cybersecurity arm, said popular video-sharing app TikTok is China's "Trojan horse" and poses a long-term, strategic cybersecurity concern. Joyce said it was critical that the US government monitor TikTok's Chinese parent ByteDance Ltd. to avoid a security incident "five, 10 or 20" years down the line, as opposed to an imminent, "tactical" threat.
/jlne.ws/42YqDu7
***** Here is someone who gets it, who is in the right job to get it. That is a winning combination.~JJL
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CFTC Charges Binance and Its Founder, Changpeng Zhao, with Willful Evasion of Federal Law and Operating an Illegal Digital Asset Derivatives Exchange
CFTC
The Commodity Futures Trading Commission today announced it has filed a civil enforcement action in the U.S. District Court for the Northern District of Illinois charging Changpeng Zhao and three entities that operate the Binance platform with numerous violations of the Commodity Exchange Act (CEA) and CFTC regulations. The complaint also charges Samuel Lim, Binance's former chief compliance officer, with aiding and abetting Binance's violations.
/jlne.ws/3JTuj7H
***** Who is next? First Sam was Bankman-Fried. Next was Chanpeng Zhao. Who is next in the crypto leader pecking order to get it?~JJL
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Switzerland's attractiveness as a business hub has been falling since 2013
Clarisa Diaz - Quartz
The collapse of Credit Suisse and its regulator-orchestrated purchase by UBS has many questioning Switzerland's future as a global financial capital. But two recent reports suggest the country in fact has been losing its edge as a center for international business for at least the past decade. A McKinsey analysis of Switzerland's attractiveness to multinational companies suggests that while the country remains an important corporate hub, it has lost relevance to Singapore and Dubai.
/jlne.ws/3JRpF9X
***** Switzerland is the most beautiful country I have ever seen. As a business hub, well, hubs have turning points and Switzerland's is turning.~JJL
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Nvidia Says Crypto Adds Nothing to Society, Despite Profiting From Mining
Kate Irwin - Decrypt
Computer hardware manufacturer Nvidia has profited off of the cryptocurrency mining industry in recent years-but now CTO Michael Kagan has reportedly said that crypto does not "bring anything useful for society," according to The Guardian. Instead, Kagan hopes that NVIDIA products are used for artificial intelligence (AI) development rather than crypto mining.
/jlne.ws/42NdDHC
****** We need a crypto leader to stand up and refute this, except that they would probably be the next Whac-A-Mole for regulators.~JJL
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Monday's Top Three
Our most read story Monday was TikTok is owned by a Chinese company. So why doesn't it exist there? from CNN Business. Second was TikTok is part of China's cognitive warfare campaign, from The Guardian. Third was a tie between CFTC Chairman Behnam Speaks To JLN at Fia Boca, a JLN video interview, and A Matt Levine Effect? from SSRN, a paper exploring "whether Matt Levine's vacation drives market volatility as suggested by readers and Levine himself."
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MarketsWiki Stats
27,265 pages; 243,908 edits
MarketsWiki Statistics
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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
Publisher | | | Sarah Rudolph
Editor-in-Chief
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Editor
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| Lead Stories | Binance and Its CEO Sued by CFTC Over US Regulatory Violations; CFTC alleges world's biggest crypto exchange shirked rules; Case was filed in federal court in Chicago on Monday
Allyson Versprille, Lydia Beyoud, Tom Schoenberg and Ava Benny-Morrison - Bloomberg
The US took its most forceful move yet on Monday to crack down on crypto exchange Binance Holdings Ltd. and its chief executive officer Changpeng Zhao. The Commodity Futures Trading Commission alleged in federal court in Chicago that Binance and its CEO, who is known as CZ, routinely broke American derivatives rules as the firm grew to be the world's largest trading platform. Binance should have registered with the agency years ago and continues to violate the CFTC's rules, according to the regulator.
/jlne.ws/3nhT7OO
Cryptoverse: Buoyant bitcoin's losing its liquidity
Medha Singh and Lisa Pauline Mattackal - Reuters
Bullish bitcoin has been a surprise winner of the banking blowout. Yet investors aiming to amp up their bets face an ominous obstacle: a lack of liquidity that could trigger wild price swings. The price of the No.1 cryptocurrency has jumped 40% to around $27,700 since March 10, when the failure of Silicon Valley Bank (SVB) careered into mainstream markets. On the flip side, though, its liquidity is drying up.
/jlne.ws/3lO5fXy
Fed's Barr Calls Silicon Valley Bank a 'Textbook Case of Mismanagement'; Top bank regulator to testify Tuesday alongside other officials
Andrew Ackerman and Andrew Duehren - The Wall Street Journal
The failure of Silicon Valley Bank demonstrates a "textbook case of mismanagement," the Federal Reserve's top banking regulator is expected to tell Senate lawmakers on Tuesday, while acknowledging there may have been shortcomings in the central bank's oversight. "SVB failed because the bank's management did not effectively manage its interest-rate and liquidity risk, and the bank then suffered a devastating and unexpected run by its uninsured depositors," said Michael Barr, the Fed's vice chairman for supervision, in written testimony released by the central bank.
/jlne.ws/40E1jr6
French prosecutors raid banks in Paris as part of 'cum-ex' tax scandal
Sarah White - Financial Times
Investigators searched the offices of several large banks in Paris on Tuesday, including BNP Paribas, Société Générale and HSBC, in the first French raids connected to the so-called "cum-ex" tax evasion scandal. The raids were linked to five preliminary investigations launched in 2021 on alleged money laundering and fiscal fraud charges, France's financial prosecutor's office said in a statement.
/jlne.ws/40kOGkV
Banks in France Face More Than $1.1 Billion Fines After Raids; About 150 investigators involved in raid of lenders in France; HSBC, Natixis, BNP's Exane also among firms being searched
Alexandre Rajbhandari - Bloomberg
French banks including Societe Generale SA and BNP Paribas SA face collective fines of more than 1 billion euros ($1.1 billion) as part of a probe into tax fraud and money laundering related to dividend payments. HSBC Holdings Plc, Natixis SA and BNP's Exane unit are also part of the investigation, according to the prosecutors office in Paris, which said that the fines include penalties and back interest. Preliminary investigations related to the raids were opened in December 2021, the prosecutor said.
/jlne.ws/42KAbIV
Swiss regulators voiced concerns in 2019 about ability to save Credit Suisse and UBS ; Authorities said no possibility of the orderly wind-down of one of the two big lenders
Sam Jones - Financial Times
Swiss authorities concluded in 2019 that the country's two biggest banks, UBS and Credit Suisse, could no longer be saved in the event of a liquidity crisis using emergency measures put in place after the 2008 financial crash. "The special liquidity requirements for SIBs [systemically important banks] embedded in the Liquidity Ordinance [do] not safeguard the higher resilience of SIBs required by the Banking Act," a government working group, comprising members of the Ministry of Finance, the Swiss National Bank and the market regulator Finma decided nearly four years ago.
/jlne.ws/3FXXGEA
How family-controlled First Citizens became a top-20 US bank; Lender has grown rapidly under CEO Frank Holding by acquiring distressed rivals
Antoine Gara and Stephen Gandel - Financial Times
A week before Silicon Valley Bank was seized by the Federal Deposit Insurance Corporation, the lender that would go on to acquire it was celebrating its 125th anniversary, having grown from a single branch based in rural North Carolina in the 19th century into one of the biggest banking dynasties in the US.
/jlne.ws/40CyTOR
Cheap FTX crypto tokens were offered to Genesis executives; Major lender was able to invest at a discounted rate before tokens were issued to public
Kadhim Shubber and Nikou Asgari - Financial Times
Executives at a major lender to Sam Bankman-Fried's defunct hedge fund had privileged early access to issuances of new tokens backed by the disgraced entrepreneur's crypto exchange FTX, the Financial Times has learned. Genesis, a leading crypto lender that collapsed in January, was long a key source of funding for Alameda Research, the trading firm at the heart of Bankman-Fried's alleged theft of customer assets from FTX.
/jlne.ws/3JTO1Qs
Sam Bankman-Fried, prosecutors reach new bail agreement
Reuters
Lawyers for Sam Bankman-Fried said they reached an agreement with U.S. prosecutors on Monday on revised bail conditions, after a judge raised the prospect of sending the indicted FTX cryptocurrency exchange founder to jail pending trial.
/jlne.ws/3TMSnxr
Binance rejects U.S. charges of violating trading rules, manipulating markets
Timmy Shen - Forkast
Binance Chief Executive Officer Changpeng Zhao rejected allegations of wrongdoing in a Monday lawsuit filed by the U.S. Commodity Futures Trading Commission (CFTC), saying Binance is committed to transparency and cooperation with regulators and law enforcement in the U.S. and elsewhere in the world. The CFTC complaint "appears to contain an incomplete recitation of facts" and Binance.com, the world's largest cryptocurrency exchange by trading volume, does not trade for profit or "manipulate" the market under any circumstances, Zhao wrote in a blog post on Tuesday
/jlne.ws/3ZlPK6W
The long-awaited crackdown on crypto's Binance is here and it has chat messages about alleged criminal clients: 'Like come on. They are here for crime'
Prarthana Prakash, Tristan Bove - Fortune
A new civil suit against Binance filed by the Commodity Futures Trading Commission accuses the crypto giant of a slew of counts, including failing to register its derivative products and failing to fence off its services from U.S. customers. But it's also filled with specific details about alleged criminal activity from the top officers of the company, who the CFTC accuses of knowing about and engaging in criminal transactions.
/jlne.ws/40ldjOE
US regulators sued Binance for encouraging customers to buy unregistered crypto commodities
Diego Lasarte - Quartz
The US Commodity Futures Trading Commission (CTFC) is suing Binance, alleging that the popular crypto exchange illegally sold crypto derivatives-for currencies including bitcoin, ethereum, litecoin, tether, and binance USD- to retail investors. The lawsuit (pdf) accuses Binance employees of explicitly encouraging certain customers to use illegal VPNs for trades, while directing customers designated as important to set up shell companies in places like the British Virgin Islands and the Netherlands to avoid US trading restrictions.
/jlne.ws/42DW78q
Crypto Billionaire Zhao and Binance Are in Big Trouble; The CFTC has just filed a lawsuit against Zhao and his firm Binance, the world's largest cryptocurrency exchange, for allegedly letting U.S. residents buy and sell crypto derivatives while the firm is not registered.
Luc Olinga - The Street
More than four months after the fall of Sam Bankman-Fried, one of its most famous faces, another king of the young decentralized financial services industry is in the crosshairs of regulators. Changpeng Zhao, who was Bankman-Fried's main rival, is now facing legal scrutiny. Like the latter, Zhao is known in the crypto space by his initials. Bankman-Fried was called "SBF." Zhao is called "CZ." The 40-year-old, who is also a billionaire, is the founder and CEO of Binance, the world's largest exchange for cryptocurrencies and other crypto-related products.
/jlne.ws/40kND4t
The FDIC's Sweetheart Bank Deal for SVB; First Citizens scores a great deal, while the deposit insurance fund takes a $20 billion hit.
The Editorial Board - The Wall Street Journal
It's good to be a banker at the remainder counter, especially when the feds are helping with the purchase. First Citizens BancShares on Sunday night was the lucky winner of the bidding to buy the assets of Silicon Valley Bank, and what a deal it is. Rather than minimize the cost to the deposit insurance fund as required by law, the Federal Deposit Insurance Corp. seems to have chosen the best political match.
/jlne.ws/3z9TI86
Bets Against Signature Bank Stock Paid Off-on Paper, at Least; Some put options holders say their brokers have made it difficult to exercise their options
Gunjan Banerji - The Wall Street Journal
For options traders, betting that shares of Signature Bank and SVB Financial Group would plummet was the easy part. Trying to cash out has been harder-and, for many, unexpectedly costly. The banks failed two weeks ago and were taken over by regulators, which essentially wiped out the value of their shares. That is an outcome that should be good news for investors owning puts, options that confer the right to sell shares at a stated price by a certain date.
/jlne.ws/3ntCtfv
A Timeline of Binance's Run-Ins With Global Crypto Regulators; Actions reveal wide regulatory crackdown from Europe to Asia; Exchange has only grown its clout since the downfall of FTX
Justina Lee - Bloomberg
The dramatic US enforcement action against Binance on Monday is the latest in a long history of run-ins between the world's largest crypto exchange and regulators around the world. In a forceful move to crack down on the most systemically important player in the $1.1 trillion industry, US authorities on Monday sued Binance and its chief executive Changpeng "CZ" Zhao for allegedly breaking trading and derivatives rules.
/jlne.ws/40lRoXw
7 Biggest Revelations About Binance From CFTC's Explosive Lawsuit
Aidan Ryan and Akash Pasricha - The Information
The Commodity Futures Trading Commission sued crypto exchange Binance and its CEO, Changpeng Zhao, Monday for violating U.S. trading laws, the first major lawsuit from a U.S. agency against the world's largest crypto exchange. The lawsuit alleges that Binance breached multiple laws by encouraging U.S.-based customers to use the trading platform despite the fact that it hadn't registered with U.S. regulators.
/jlne.ws/42WUwuK
Schwab's $7 Trillion Empire Built on Low Rates Is Showing Cracks; Company faces pressure from bond losses and rising cash yields; Executives say business is misunderstood, has enough liquidity
Annie Massa and Edward Harrison - Bloomberg
On the surface, Charles Schwab Corp. being swept up in the worst US banking crisis since 2008 makes little sense. The firm, a half-century mainstay in the brokerage industry, isn't overexposed to crypto like Silvergate Capital and Signature Bank, nor to startups and venture capital, which felled Silicon Valley Bank. Fewer than 20% of Schwab's depositors exceed the FDIC's $250,000 insurance cap, compared with about 90% at SVB. And with 34 million accounts, a phalanx of financial advisers and more than $7 trillion of assets across all of its businesses, it towers over regional institutions.
/jlne.ws/3zdvium
Binance CEO CZ, Crypto's Most Powerful Man, Has More Than 'FUD' to Worry Him Now; How CZ navigates US enforcement could set tone for industry; 'I probably should have learned Arabic earlier:' Binance CEO
Michael P. Regan - Bloomberg
"I'm not an anarchist," Changpeng Zhao once said. "I don't believe human civilization is advanced enough to live in a world with no rules." But now that the US Commodity Futures Trading Commission has sued Zhao and his Binance cryptocurrency exchange for alleged violations of derivatives regulations, the world is finding out how the most-powerful person in crypto responds when he himself is the one being accused of breaking the rules.
/jlne.ws/3lG5rs1
BlackRock, Fidelity Lose Out in $1 Trillion China Pension Market; China banks tap networks for early lead over global rivals; New market for private pensions could be worth $1.7 trillion
Bloomberg
In the battle for the biggest prize in China's trillion-dollar pension market, BlackRock Inc. and other global firms have little chance of attracting clients like Judy Deng. On New Year's Eve, the logistics executive tapped on her phone to deposit 12,000 yuan ($1,700) into a new pension account at her local bank in Shanghai. Deng, 46, never considered investing with the likes of BlackRock or Fidelity International.
/jlne.ws/3FW5VRw
India's $1 Trillion Bond Market Sees Rising Heft of Insurers; India poised to be sixth-largest insurance market by 2032; Rapid financialisation visible in shape of India yield curve
Subhadip Sircar - Bloomberg
The growing wealth of India's public is leading to a crucial shift in its $1 trillion sovereign bond market. Their savings - channeled through life insurers, provident and pension funds - are increasingly getting plowed into long-term debt, leading to a structural change in the costs of borrowing for Prime Minister Narendra Modi's government.
/jlne.ws/3nsM9a0
Barclays calls allegations against former CEO Staley 'serious and new'
Iain Withers - Reuters
Barclays has said recent allegations against its former Chief Executive Jes Staley are "serious and new", after U.S. lawsuits alleged he had a close relationship with Jeffrey Epstein and alleged involvement in his sex-trafficking operation. The British bank said in a notice ahead of its annual general meeting scheduled for May 3 that it had received "no material new evidence" from regulators or law enforcement agencies since Staley left the bank in November 2021.
/jlne.ws/3TOjeci
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Russians angry at downing of Ukrainian drone over their homes
Reuters
Residents of the small Russian town of Kireyevsk expressed shock and anger on Monday that an alleged Ukrainian drone had been downed over their houses, bringing down roofs and ceilings and putting their lives in danger. "It's absolutely outrageous to shoot it down over a residential area. There's a field just 500 metres from here. They could have shot it down over there. Why over our houses? People were wounded," said Kireyevsk resident Elena, 35, who like some others declined to give her surname.
/jlne.ws/3JOMVFS
Military briefing: why Ukraine wants to neutralise Russia's bases in Crimea; Kyiv's strikes on assets in the occupied peninsula are crucial to its counter-offensive
Roman Olearchyk and Ben Hall - Financial Times
Ukraine's recent drone attacks on Russian-occupied Crimea highlight the importance of neutralising Moscow's firepower on the peninsula as Kyiv prepares its much-anticipated spring counter-offensive. Russia has used its numerous military facilities in the territory - including Sevastopol port, home to its Black Sea fleet, and the Saki air base - to launch missile strikes across Ukraine and to support its ground forces in the south and east of the country.
/jlne.ws/3lRvxbp
Torture and Turmoil at Ukrainian Nuclear Plant: An Insider's Account; The former director of Europe's largest nuclear facility describes abuse of Ukrainian workers and careless practices by the Russians who took control of the plant.
Marc Santora - The New York Times
By the time Russian soldiers threw a potato sack over his head and forced him to record a false video statement about conditions at Europe's largest nuclear facility, Ihor Murashov had already witnessed enough chaos at the plant to be deeply worried.
/jlne.ws/3M13gtB
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | The New York Stock Exchange Launches Annual Sustainability Leaders Summit Today; The summit welcomes NYSE-listed companies and thought leaders to address key sustainability topics
Intercontinental Exchange
The New York Stock Exchange, part of Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology and market infrastructure, is holding its first annual broad market Sustainability Leaders Summit today, bringing together NYSE-listed companies and thought leaders to address pressing topics around sustainability. Participants in the summit will learn from experts and engage in discussions on pertinent issues, including decarbonization and carbon markets; asset managers perspective on environmental, social and governance (ESG) investing; supply chain engagement; and human capital management.
/jlne.ws/40xYnfI
Nasdaq Names Ato Garrett as Investor Relations Officer
Nasadaq
Nasdaq (Nasdaq: NDAQ) today announced that Ato Garrett has joined the company as Senior Vice President and Investor Relations Officer, reporting to Ann Dennison, Executive Vice President and Chief Financial Officer. In his role, Garrett will be responsible for Nasdaq's global investor relations strategy and leading the company's overall engagement with the investment community.
/jlne.ws/3zdXcGM
LCH SwapAgent processes first trades for KfW; The service provider enabled trades through EUR Transport Currency with Bank of America, Commerzbank, Danske Bank and Santander as counterparties.
Wesley Bray - The Trade
Service provider for the uncleared derivatives market LCH SwagAgent has added KfW to its service, having successfully processed the first Transport Currency trades between KfW and counterparties Bank of America, Commerzbank, Danske Bank and Santander.
/jlne.ws/3ZrOXBo
EEX Press Release - Exchange Council endorses EEX's approach regarding gas price cap
Exchange Council
The Exchange Council of the European Energy Exchange (EEX) held its first meeting of this year on March 23, 2023, chaired by Dr. Bernhard Walter, Head of Market Design and Regulation of EnBW AG. Key topics of the meeting included measures taken by EEX regarding the gas price cap, the expansion of product offering in the freight segment, access of the clearing house to EUA auctions, as well as implications of high-frequency trading on the exchange.
/jlne.ws/3LZ8J4a
Crossing the finish line: NextGen ETD project completed
Eurex
With the technical launch of NextGen ETD in June 2022, Eurex has set the foundation for changing the way exchange-traded derivatives (ETD) contracts or products are identified. To leverage the functionalities and create benefit for our clients, three additional product initiatives are offered as of 27 March. We recently interviewed Jonas Ullmann, Eurex's Executive Board Member and Chief Operating Officer, about the project.
/jlne.ws/40Gy9rj
Exchange's Disciplinary Action Against Blockchain Group Company Limited (Delisted, Previous Stock Code: 364) And Ten Directors
The Stock Exchange of Hong Kong Limited
Censures:(1) Blockchain Group Company Limited (delisted, previous stock code: 364)
/jlne.ws/42Q6h5V
Execution of the Compression Trades for Nikkei 225 Options
JPX
Osaka Exchange (OSE) announced that the compression trades for Nikkei 225 Options (powered by TriOptima AB) * were executed during the Night Session on March 27th (Trading date March 28th). In this cycle, total of 377 contracts (JPY10.4 billion in notional amount) were traded.
/jlne.ws/40nw43Y
Self-Certification; Amendments To The Daily Settlement Price Procedures Applicable To The Three-Month Canadian Bankers' Acceptance Futures Contract (Bax), Three-Month Corra Futures Contract (Cra) And One-Month Corra Futures Contract (Coa)
Bourse de Montreal
Bourse de Montreal Inc. (the "Bourse"), using its emergency authority under section 9 of the Derivatives Regulation, hereby announces temporary amendments to Appendices 6E-4.1, 6E-4.5 and 6E-4.6 of the rules of the Bourse regarding the Minimum Thresholds of contracts required for the determination of the Settlement Prices for all contract months for the Three-Month Canadian Bankers' Acceptance Futures contract (BAX), the One-Month CORRA Futures contract (COA)
and the Three-Month CORRA Futures contract (CRA).
/jlne.ws/3LS55Jo
Press Release No. 1 News about Adani Enterprises Limited
NSE
The media had reports that The Adani Group wants you to believe it has repaid all its loans against promoters. The Exchange, in order to verify the accuracy or otherwise of the information reported in the media and to inform the market place so that the interest of the investors is safeguarded, has written to the company. Response from the company is awaited.
/jlne.ws/3lLVzwG
Shanghai International Energy Exchange Releases Circular on Adjusting the Delivery Unit of TSR 20 Futures
Shanghai International Energy Exchange
The Shanghai International Energy Exchange has released the following circular on adjusting the delivery unit of TSR 20 futures. In accordance with the Shanghai International Energy Exchange Circular on Postponed Adjustment of the Delivery Unit of TSR 20 Futures, the revised TSR 20 Futures Contract of the Shanghai International Energy Exchange, Risk Management Rules of the Shanghai International Energy Exchange, and Delivery Rules of the Shanghai International Energy Exchange released on November 26, 2021 will come into effect as of the first trading day in the month of May in 2023 (May 4, 2023).
/jlne.ws/3TO30Qy
TMX Group CEO John McKenzie to Present at the 21st Annual National Bank Financial Services Conference
TMX Group
TMX Group CEO John McKenzie will present at the 21st annual National Bank Financial Services Conference in Montreal on Thursday, March 30, 2023 at 11:05 - 11:30 a.m. ET. A link to the webcast will be available and archived in TMX's shareholder events section.
/jlne.ws/3JODgPn
NSD Chairman of the Board Viktor Zhidkov Named CEO of the Year by NAUFOR
MOEX
Viktor Zhidkov, Chairman of the Board of the National Settlement Depository (NSD, part of the Moscow Exchange Group), won the annual Stock Market Elite award in the CEO of the Year nomination organized by the National Association of Stock Market Participants (NAUFOR).
/jlne.ws/3lNRjgi
Absolut Bank connected to the Finuslugi platform
MOEX
Absolut Bank has joined the Finuslugi platform of the Moscow Exchange and offers its users to make a deposit "Exchange maximum" at a rate of up to 8.5% per annum in rubles with interest paid at the end of the term.
/jlne.ws/3JUYMlA
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Twitter's 'For You' Feed Won't Recommend Unverified Accounts; Tweak to users' default timeline is to combat bots, Musk says; Only verified users will appear in 'For You' recommendations
Vlad Savov - Bloomberg
Twitter Inc.'s "For You" feed, the default view for users of the social network, will no longer recommend content from accounts that aren't verified, owner Elon Musk tweeted on Monday. The change, effective April 15, will mean only verified accounts - those paying an $8 monthly fee or associated with a verified organization - are eligible to have their tweets suggested in the timeline that appears when most users open the app. Voting in Twitter polls will also require verification, Musk added.
/jlne.ws/40YqK79
A Wharton professor gave A.I. tools 30 minutes to work on a business project. The results were 'superhuman'
Steve Mollman - Fortune
Artificial intelligence is presenting new possibilities in terms of how to do work, and leaving many observers nervous about what will become of white-collar jobs. Ethan Mollick, a management professor at the Wharton School of the University of Pennsylvania, has been closely following developments in generative A.I. tools, which can create essays, images, voices, code, and much else based on a user's text prompts.
/jlne.ws/3LUmVLR
Alibaba plans big restructure to boost sagging share price; Tech group will retain most profitable ecommerce businesses but allow other units to spin off and list separately
Ryan McMorrow, Qianer Liu, Hudson Lockett and Cheng Leng - Financial Times
Alibaba is planning a radical shake up to split off its logistics, cloud and local services from its main ecommerce business in a bid to bolster the ailing Chinese tech giant's share price.
/jlne.ws/3zbdDTU
Cobalt re-launches as CobaltFX following acquisition by United Fintech; The rebranded firm will now focus entirely on FX, with plans for a 'spin off' digital assets division to launch in parallel at a later stage.
Wesley Bray - The Trade
Following its acquisition in December last year by United Fintech, Cobalt is relaunching as CobaltFX, with a complete focus on foreign exchange in what chief executive Marc Levin has described as returning to "the company's roots".
/jlne.ws/3Kc41Pk
SimCorp bolsters OMS capabilities through partnership with FlexTrade; Partnership addresses demand for integration and collaborative workflows between OMS and EMS solutions, while also optimising trading activities and meeting best execution obligations.
Wesley Bray - The Trade
Investment management solutions provider SimCorp has partnered with FlexTrade Systems to extend its order management system (OMS) capabilities by incorporating the cross-asset EMS functionality of FlexTrade's FlexTRADER EMS.
/jlne.ws/3JQVcZJ
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| Cybersecurity | | Top stories for cybersecurity | SEC Proposed Rules on Cybersecurity
Yaniv Zecharya - Finextra
On March 15th, 2023, the U.S. Securities and Exchange Commission (SEC) released a new proposal to address cybersecurity risks to the U.S. securities markets. From a surface-level perspective, having greater regulation regarding cybersecurity would certainly benefit investors, issuers and market participants alike. Yet, the proposal has sparked concerns over its potential to actually increase costs and potentially even increase risks associated with cybersecurity. As I will elaborate in a moment, some SEC Commissioners have even expressed their non-support for the new proposal.
/jlne.ws/40mFqgi
There Are Way Too Many Cybersecurity Startups. Some Won't Survive A Recession.
Kyle Alspach - CRN
Compared to their peers in the broader tech industry, the cybersecurity sector has seemed pretty sturdy since the economic travails that began last year. Of the thousands of vendors in the cybersecurity market, for instance, just a fraction have done major layoffs. More cracks in the facade are likely to appear in the coming months, though.
/jlne.ws/3ntyIGV
The latest mass ransomware attack has been unfolding for nearly two months
Tim Starks - The Washington Post
A slow-motion mass ransomware attack has been unfolding over nearly two months, with new victims like Procter & Gamble and a U.K. pension fund acknowledging as recently as last week that they were hit. In all, Clop - the ransomware gang responsible for the attack, whose name is sometimes stylized as Cl0p - claims that it has hit 130 victims by exploiting a previously unknown "zero-day" vulnerability in a popular file-transfer software.
/jlne.ws/40IeSWI
Cybersecurity expert says finding culprits in MPS hack will be "very difficult, if not impossible"
Esme Murphy - CBS News
More information is emerging about the massive cyber breach of Minneapolis Public Schools.
The school district has refused to pay $1 million in ransomware to the Medusa Media Team, cyber criminal group.
/jlne.ws/3JTlGtK
Every regulator has finally woken up to vendor cybersecurity risk; Virginie O'Shea, founder and chief executive of Firebrand Research, examines increased regulatory focus on cybersecurity, the wake-up call resulting from the ransomware hack of Ion and how regulators can approach addressing risk.
Virginie O'Shea - The Trade
Everywhere you turn these days, you hear regulators talking about operational resilience and cybersecurity. Of course, this isn't a new thing for some of them (the Digital Operational Resilience Act, or DORA the third party risk explorer, has been in the works for a while, after all), but numerous others have joined the fray over recent months.
/jlne.ws/40EchNi
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| Cryptocurrencies | | Top stories for cryptocurrencies | CFTC Could Force Binance to Cease U.S. Operations as Part of Settlement: Bernstein
Will Canny - CoinDesk
The U.S. Commodity Futures Trading Commission (CFTC) could require Binance to cease operations in the U.S. as part of a potential settlement, Bernstein said in a research report on Tuesday.
/jlne.ws/3ZoJZ8H
Ripple's 'XRP Army' shows why crypto boosters are their own worst enemy
Jeff John Roberts - Fortune
On Friday, I used this column to discuss the history of Ripple, the San Francisco company that has built a business around XRP, the cryptocurrency with which it is closely tied. My account discussed Ripple's struggles over the years to find a long-term business case but concluded on a positive note, citing the company's claim that the past two years have been its best ever. On Saturday, I awoke to find my Twitter notifications had become a dumpster fire.
/jlne.ws/3zfrCbz
Sam Bankman-Fried's Lawyers, Prosecutors Agree on Proposed Bail Conditions
Jamie Crawley - CoinDesk
Lawyers for Sam Bankman-Fried, the founder of crypto exchange FTX, have agreed on new bail conditions with U.S. prosecutors, according to court documents filed on Monday. Among the conditions submitted for approval to District Judge Lewis Kaplan of the Southern District of New York, Bankman-Fried will be given a new phone that won't have internet access and will be limited to text messages and voice calls. He will also be provided a new laptop with limited functionality that will be allowed access only to approved websites.
/jlne.ws/3lIt82T
Lending Platform MakerDAO Approves 'Constitution,' Moves Forward With 'Endgame' Plan
Krisztian Sandor - CoinDesk
MakerDAO's community on Monday approved a sweeping set of rules that outlines how the $7 billion lending platform Maker will function and make decisions in the future. The approved proposals include Maker's guiding principles called "Constitution," which was written by Maker founder Rune Christensen, and lay a new foundation for the protocol's governance, development and investments of its reserves.
/jlne.ws/3KgFlFr
Crypto Advocates Shrug Off CFTC's Lawsuit Against Binance
Carly Wanna and Isabelle Lee - Bloomberg
For many veterans of the digital-asset world, the US Commodity Futures Trading Commission's lawsuit against Binance Holdings Ltd. for allegedly breaking derivatives rules is just another day in crypto. Token prices initially dropped after the CFTC filed the lawsuit Monday in a federal court in Chicago, only to quickly steady, and even pare losses in some instances. Many crypto advocates view the action by the US agency as just the latest assault on the sector by global regulators.
/jlne.ws/3LWTiJG
Binance Crypto Empire Dwarfs FTX at Peak and Dominates Industry; CFTC sues the world's largest crypto exchange for violations; 'CZ' Zhao's firm is deeply enmeshed in all corners of industry
Justina Lee - Bloomberg
In every single corner of the crypto landscape, one name pops up: Binance. Run by Changpeng "CZ" Zhao, the world's largest crypto exchange is a dominant force in everything from Bitcoin trading and digital art to venture capital. With its power and influence only increasing after the collapse last year of Sam Bankman-Fried's FTX empire, the inconvenient truth is that Binance has a grip on the $1.1 trillion industry that has few parallels in traditional finance. That's despite all the decentralization talk from crypto's true believers.
/jlne.ws/3GkacP5
Crypto Industry Defies Strife as ETP Debuts Pick Up, Flows Rise; Six products launched this month, most since September 2022; Crypto ETPs see about $182 million in inflows last week: BI
Vildana Hajric - Bloomberg
Exchange-traded products focused on digital tokens are launching at the fastest pace since before the collapse of FTX. The new funds arrive as investors pour money into crypto products amid turmoil in the banking industry. But they also come as the crypto industry is being assailed by a number of regulatory enforcements and actions looking to clamp down on fraud and market manipulation. On Monday, cryptocurrency exchange Binance Holdings Ltd. was sued by the US Commodity Futures Trading Commission for allegedly breaking derivatives rules.
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| Politics | | An overview of politics as it relates to the financial markets | US regulators to face sharp questions from Congress over bank collapses
Pete Schroeder and Hannah Lang - Reuters
Lawmakers are expected to put top U.S. bank regulators on the defensive over the unexpected failures of regional lenders Silicon Valley Bank and Signature Bank when they testify before Congress on Tuesday.
/jlne.ws/40Byw6o
Top Democrat to accuse US regulators of allowing SVB to 'grow too big, too fast'; Sherrod Brown will draw parallels with 2008 financial crisis in Senate hearing
Lauren Fedor - Financial Times
A top Democrat will accuse US regulators of allowing Silicon Valley Bank and Signature Bank to "grow too big, too fast", drawing parallels between the lenders' collapse and the 2008 financial crisis in a congressional hearing on Tuesday. According to excerpts released by his office, Sherrod Brown, the Democrat who chairs the powerful Senate banking committee, will say: "We're left with many questions - and a lot of justified anger - towards bank executives and boards, venture capitalists, federal and state bank regulators, and policymakers."
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South Dakota gov's veto of cryptocurrency regulations upheld
Amancai Biraben - AP
South Dakota's House failed Monday to override Gov. Kristi Noem's recent veto of a bill that would have created government regulations for the use of cryptocurrency in the state. The bill had passed smoothly throughout the legislature, and Noem's veto of last week was upheld on a 37-30 vote. Proponents had argued the bill would have centralized different cryptocurrency systems through one government oversight commission, boosting transparency.
/jlne.ws/3KfeYQf
Fears of Societal Collapse Prompt New Push for Babies in Japan; Population fall accelerates as number of births hits new low; Premier begins to unveil ideas to encourage bigger families
Isabel Reynolds, Emi Urabe and Marika Katanuma - Bloomberg
Alarmed by an even faster than expected slide in the number of babies born in Japan last year, Prime Minister Fumio Kishida is preparing a policy package he says is a last chance to keep society functioning. Ideas like compulsory paternity leave, canceling student debt for people who have a baby, and ¥10 million ($76,445) payouts for a third child have been thrown around in recent weeks. While some of these are controversial and won't make it into the final program, Kishida has promised measures "on a different dimension" from previous efforts.
/jlne.ws/40lKotL
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| Regulation & Enforcement | | Stories about regulation and the law. | U.S. Bank Regulators Investigating Leaders of the Failed Tech Banks
Jesse Hamilton - CoinDesk
The Federal Deposit Insurance Corp. is investigating the actions of the leaders of Signature Bank and Silicon Valley Bank to hold them accountable for the banks' collapses, said Chairman Martin Gruenberg, who detailed their mismanagement and dangerous business concentrations - especially in digital assets at Signature - in testimony prepared for a U.S. Senate hearing, scheduled to be held Tuesday.
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Chairman Behnam to Testify Before the House Committee on Appropriations, Subcommittee Agriculture, Rural Development, Food and Drug Administration on the CFTC FY2024 Budget Request
CFTC
Chairman Rostin Behnam will testify at the House Committee on Appropriations' Subcommittee on Agriculture, Rural Development, Food and Drug Administration Budget Hearing - Fiscal Year 2024 Request for the Commodity Futures Trading Commission.
/jlne.ws/3FWpMAb
CFTC Charges Binance and Its Founder, Changpeng Zhao, with Willful Evasion of Federal Law and Operating an Illegal Digital Asset Derivatives Exchange
CFTC
The Commodity Futures Trading Commission today announced it has filed a civil enforcement action in the U.S. District Court for the Northern District of Illinois charging Changpeng Zhao and three entities that operate the Binance platform with numerous violations of the Commodity Exchange Act (CEA) and CFTC regulations. The complaint also charges Samuel Lim, Binance's former chief compliance officer, with aiding and abetting Binance's violations.
/jlne.ws/3JTuj7H
Statement of Commissioner Kristin N. Johnson in Support of the CFTC Complaint Alleging Binance, Affiliated Entities, and Senior Management Violated the Commodity Exchange Act and Evaded U.S. Regulation
CFTC
Today, the Commodity Futures Trading Commission (Commission or CFTC) filed a civil enforcement action in the U.S. District Court for the Northern District of Illinois against Binance Holdings Limited, Binance Holdings ("IE") Limited, Binance ("Services") Holdings Limited (collectively, "Binance"), and Binance's CEO, Changpeng Zhao ("Zhao"or "CZ"), and former Chief Compliance Officer, Samuel Lim ("Lim"). As the CFTC complaint alleges, Zhao with the assistance of Chief Compliance Officer Lim, orchestrated a strategy directing the Binance enterprise to engage in numerous violations of the Commodity Exchange Act (CEA) and the CFTC regulations, ultimately operating the enterprise through a complex web of firms with the goal of using this operational infrastructure to shield Binance from complying with existing regulations in any of the jurisdictions where the firm operates.
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US regulator sues top crypto exchange Binance, CEO for 'willful evasion'
Tom Wilson and Angus Berwick - Reuters
The world's biggest crypto exchange Binance and its CEO and founder Changpeng Zhao were sued by the U.S. Commodity Futures Trading Commission (CFTC) on Monday for operating what the regulator alleged were an "illegal" exchange and a "sham" compliance program. The CFTC sued Binance, Zhao and its former top compliance executive with "willful evasion" of U.S. law, "while engaging in a calculated strategy of regulatory arbitrage to their commercial benefit."
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The Most Striking Claims in The CFTC's Lawsuit Against Binance; Regulator alleges 'calculated' race to grow, at rules' expense; 'We see the bad, but we close 2 eyes,' it cites in chat
Ava Benny-Morrison and Peter Jeffrey - Bloomberg
The top US derivatives regulator's lawsuit against crypto giant Binance Holdings Ltd. and Chief Executive Officer Changpeng Zhao hammers at the company's alleged concealment of rules violations in a breakneck pursuit of growth. As the Commodity Futures Trading Commission goes after the world's biggest cryptocurrency exchange - in the wake of FTX's collapse and amid a banking crisis in which crypto figures - here are some of the most striking allegations and details from its suit, which also includes claims of willfully ignoring potential criminal activity.
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The CFTC Comes for Binance; Also First Citizens buys SVB, electricity trading and kicking bags of nickel.
Matt Levine - Bloomberg Opinion
A decent rule of thumb is that all cryptocurrency exchanges are doing crimes, and if you're lucky your exchange is doing only process crimes. Today the US Commodity Futures Trading Commission sued Binance Holdings Ltd., Changpeng Zhao's big crypto derivatives exchange, for letting Americans trade crypto derivatives. There are no accusations that Binance is stealing customer money, or even taking big risks with it, which makes Binance look better than some other crypto exchanges I could name.
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Crypto exchange Binance accused by CFTC of illegally serving US clients
Scott Chipolina and Stefania Palma - Financial Times
US financial regulator has accused Binance and its chief executive Changpeng Zhao of operating illegally in the country, in a lawsuit that seeks fines and an injunction against the world's largest crypto trading exchange. The Commodity Futures Trading Commission alleged in a civil complaint filed on Monday that much of Binance's reported trading volume and profitability have come from "extensive solicitation of and access to" US customers, contradicting the exchange's claims.
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Read the CFTC's lawsuit against Binance
Alexandra Scaggs - Financial Times
Has the CFTC finally grown some teeth? The regulator has filed a civil suit against Binance in Illinois federal court. It is calling (alleged) bullshit on the crypto platform's assurances that it doesn't market to or trade with Americans.
/jlne.ws/3lEKg9K
Former CFTC Chair Giancarlo: A Privacy-Protecting U.S. CBDC Could 'Take Over the World'
Fran Velasquez - CoinDesk
A U.S. central bank digital currency (CBDC) that protects privacy and is free of surveillance tools could set a global standard and reach mass adoption, said former Commodity Futures Trading Commission (CFTC) Chairman Christopher J. Giancarlo. "That [U.S.] digital dollar would take over the world," Giancarlo, co-founder of the Digital Dollar Project and senior counsel at Willkie Farr & Gallagher's Digital Works unit, told CoinDesk TV's "First Mover" on Monday.
/jlne.ws/3zcGKGw
Australia's Regulators to Meet After Yellen, Lagarde Talks; Australia's Council of Financial Regulators will meet Thursday; Chalmers says Australia isn't immune to offshore developments
Swati Pandey and Ben Westcott - Bloomberg
Australian Treasurer Jim Chalmers has convened a meeting of his nation's top financial regulators on Thursday after speaking with key global officials as part of ongoing monitoring of international banking stresses. The meeting was called after Chalmers spoke at length Tuesday morning with US Treasury Secretary Janet Yellen and late Monday with European Central Bank President Christine Lagarde. They discussed the banking systems in Europe and America, global financial volatility and the impact of higher interest rates.
/jlne.ws/40jEvNN
The crypto industry enlisted an unlikely champion in its crusade against the SEC: An ex-Coinbase manager convicted of insider trading
Leo Schwartz - Fortune
As the battle between the crypto industry and Gary Gensler's Securities and Exchange Commission escalates, the embattled sector has poured its hopes for victory into an unexpected ally: Ishan Wahi, a former employee of the crypto exchange Coinbase who pled guilty last month in what prosecutors described as the first cryptocurrency insider trading case.
/jlne.ws/40lTruG
SEC Obtains Emergency Relief Against Long Island Investment Adviser and Firm Charged with Fraud
SEC
The Securities and Exchange Commission today charged former broker Surage Kamal Roshan Perera and his firm, Janues Capital Incorporated, with defrauding at least one investor out of millions by lying about investment opportunities and strategies, concealing trading losses, and using funds received from others to give the victim the promised returns in Ponzi-like fashion. The SEC has obtained emergency relief in court, including a temporary restraining order and an asset freeze.
/jlne.ws/3LZ5iKO
SEC Charges Texas Resident with Orchestrating Three Separate Schemes Defrauding Investors Out of Over $8.4 Million
SEC
On March 23, 2023, the Securities and Exchange Commission charged Aaron Cain McKnight with orchestrating three separate fraudulent investment schemes through which he allegedly stole more than $8.4 million from at least 28 investors. The SEC also charged a lawyer, his law firm, a promoter, and McKnight's sister with aiding and abetting aspects of the schemes.
/jlne.ws/40q1zKO
ASIC consults on remaking 'sunsetting' class orders on IDPS and IDPS-like schemes
ASIC
ASIC is seeking feedback from operators of investor directed portfolio services (IDPS) and responsible entities of IDPS-like schemes on proposals to remake 'sunsetting' class orders.
/jlne.ws/3JYkUf8
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Harita Nickel raises $660mn in Indonesia's biggest IPO this year
Mercedes Ruehl - Financial Times
Harita Nickel has raised Rp10tn ($660mn) from investors including Swiss commodities trader Glencore and Asian sovereign wealth funds in Indonesia's largest initial public offering so far this year, in the latest deal to underline Jakarta's red-hot market for public listings. Harita Nickel, known as Trimegah Bangun Persada locally, is one of a handful of major commodities leading a record IPO pipeline this year in south-east Asia's biggest economy. The company priced shares at Rp1,250, at the top end of its range, valuing it at $5.15bn.
/jlne.ws/40k3FLT
Oil's Swoon Prompts Rush by Top Users to Protect Against Rebound; Swap dealers report second-biggest rise in bullish Brent bets; Crude whipsawed this month as banking turmoil roils market
Alex Longley and Devika Krishna Kumar - Bloomberg
Oil consumers including airlines used the recent slump in prices to boost their hedging level at a rapid pace, locking in protection against a possible rebound later in the year. When prices plunged earlier this month, traders and brokers said that there had a been a marked uptick in activity from consumers, but the scale of the deals is only now showing up in bank positioning data.
/jlne.ws/3lGiDgt
Shale oil drillers left exposed after pulling back price hedges; Producer 'optimistic we'll see $100 a barrel' shuns insurance despite market wobbles
Justin Jacobs - Financial Times
US oil producers cut back on price hedges this year in a bet that energy markets would rally again, a move that has left them suddenly vulnerable after turmoil in the banking sector knocked down the price of crude. The collapse of Silicon Valley Bank triggered a sell-off in US oil markets this month from recent highs of $80 a barrel. Prices have recovered to about $73 a barrel but remain at a level that could force producers to curtail plans to grow output or reduce payouts to shareholders, analysts say.
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Tax loss harvesting: an investment tactic that has gone too far; Rich people finding tax loopholes isn't a new concept but do authorities need to toughen rules on wash sales?
Stephen Foley - Financial Times
Goldman Sachs says it aims to provide "best-in-class investment advice to clients, consistent with both the letter and the spirit of all applicable tax laws and regulations". So the bank was quick to say that it would change its trading practices after a media organisation claimed it had helped former Microsoft boss Steve Ballmer subvert at least the spirit of US laws against so-called 'wash sales'.
/jlne.ws/3ZoBtGL
What Happens in the Banking Sector Won't Stay There; The fallout from Silicon Valley Bank and other institutions adds to the headwinds for economic growth.
Mohamed A. El-Erian - Bloomberg
The sudden loss of confidence by depositors in some US banks is causing many to focus on the scope for financial contagion and the needed policy responses. What should not be overlooked is the other, and slower, contagion channel in play - that involving enablers of economic growth - which is less in focus but also important in determining how quickly the world's largest economy will overcome this abrupt air pocket.
/jlne.ws/3lNXbpO
CMC Markets' Pandemic Gains Vanish as Retail Traders Shy Away; Stock endures a two-day plunge after firm notes lower volumes; CMC has lost about two-thirds of value since April 2021 peak
Joe Easton - Bloomberg
CMC Markets Plc, a British online trading firm whose business boomed during Covid-19 lockdowns, is close to erasing its huge gains of the pandemic era. The shares plunged 21% late Monday and extended declines on Tuesday after the company warned of a more "challenging environment" due to lower equity volumes in February and March. They are now only 26% higher than when the UK first went into lockdown in March 2020, having lost about two-thirds of their value since hitting a record peak in April 2021.
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | The White House's 2024 budget proposal prioritizes climate tech; Despite weeks of confusion and turmoil, the Biden administration's 2024 Proposed Budget signals a sustained future for the climate tech sector.
Leah Garden - ClimateTech
The Biden administration released its 2024 budget request, and funds for climate mitigation were at the forefront. Proposed initiatives include a $1 billion request to further explore fusion technology as a clean energy source and $905 million to create clean energy jobs in communities once dependent upon fossil fuels for employment.
/jlne.ws/3Kdkh2j
Norway in 'Process' with Russia to Transfer Arctic Council Chair
Ott Ummelas and Danielle Bochove - Bloomberg
Norway is "in a constructive process" with Russia to ensure a handover of the chairmanship of the Arctic Council after the intergovernmental body was suspended in the aftermath of the war in Ukraine, according to a senior official. Meetings of the Arctic Council, an eight-country group that includes the US and current chair Russia, have been put on hold since the full-scale invasion of Ukraine last year.
/jlne.ws/3zgeHpP
Wind sector faces supply chain crunch this decade, industry body warns; Sustained demand for key components likely to lead to shortages, says Global Wind Energy Council
Camilla Hodgson - Financial Times
The global wind sector will face a supply chain crunch this decade, as looming bottlenecks for key components and ships are set to squeeze the sector, an industry body has warned. The Global Wind Energy Council said "spare capacity" in wind energy manufacturing was "likely to disappear by 2026".
/jlne.ws/3TMNCUE
A Polluting Coal Miner Cuts Emissions by Using Methane for Power
James Fernyhough - Bloomberg
Anglo American Plc's Moranbah North coal mine is among the biggest polluters in Australia. It's also being hailed as a potential climate role model for the fossil fuel sector. That's because London-based Anglo is curbing some of the most problematic emissions from this mine and two others by capturing methane-a greenhouse gas far more potent than carbon dioxide-from their underground coal seams through a series of shafts and networks of pipes. It's supplying that fuel to nearby homes and businesses and using it to produce electricity for the grid.
/jlne.ws/3zcFhA0
EU Takes Key Step Toward Ending Era of Combustion-Engine Cars; Officials adopt zero emissions cars rules after German deal; Commission will make proposals for vehicles running on e-fuels
John Ainger - Bloomberg
European Union officials signed off on a deal that effectively ends the sale of most new combustion engines from 2035 after Germany received provisions for how certain high-end vehicles may get a future exemption if they run solely on e-fuels.
/jlne.ws/3M2LHcR
New US Wind Energy Capacity Fell 56% as Tax Relief Dwindled; S&P says wind developers added 6.7 gigawatts capacity in 2022; Firm sees Inflation Reduction Act reviving project pipelines
Josh Saul - Bloomberg
The pace of US onshore wind-farm installations tumbled last year, in a sign that the industry's struggles aren't limited to the fledgling offshore sector. US wind developers installed 6.7 gigawatts of power generation capacity last year, a 56% drop from the prior year, S&P Global said Monday in a report. That happened due to declining tax breaks for developers even amid the Biden administration's push to add more renewable energy.
/jlne.ws/3LVaBuC
McKinsey sees dollars behind sustainability shift; Consultancy says household consumer environmental concerns translate to "actual spending behavior."
Brian Taylor - Recycling Today
Consumer packaged goods (CPG) companies in the United States increasingly are offering products labeled as sustainable, and the effort seems worthwhile as measured by the bottom line, according to global consulting firm McKinsey. In a recent report conducted in cooperation with research firm NielsenIQ, McKinsey reports total consumer spending in the U.S. accounts for more $14 trillion annually and comprises two-thirds of U.S. gross domestic product (GDP).
/jlne.ws/3TSnSX6
Ontario Fund Aims to Turn Cow Waste Into Profit With Sevana Deal; Teachers' pension to take majority stake in Sevana Bioenergy; Idaho-based company processes agricultural waste into RNG
Layan Odeh - Bloomberg
Ontario Teachers' Pension Plan will buy a majority stake in a US company that produces renewable natural gas from cow waste. The pension plan will make a capital commitment of $250 million to the firm, Sevana Bioenergy LLC, to finance renewable gas projects across North America, according to a statement Tuesday.
/jlne.ws/3zdtIsk
A New ESG Fund Class Sees 15% Asset Boom in Just Two Months; Number of ESG funds targeting biodiversity protection soars; COP15 put biodiversity on the map as the next big ESG goal
Natasha White - Bloomberg
Fund managers offering strategies that target biodiversity have expanded their asset base by 15% in two months, as the industry builds a new ESG market despite an absence of standardized data. The growth follows a 150% surge in the number of funds offering such strategies last year, according to figures provided by Morningstar Direct. That said, biodiversity remains tiny compared with the wider market for environmental, social and governance strategies, at just $2.9 billion in combined assets as of Feb. 28, the research firm estimates.
/jlne.ws/3ng8Gqf
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Credit Suisse's Catastrophe Bonds Could Outlive the Bank; Disaster debt to be unaffected by UBS sale: DBRS Morningstar; That contrasts with wipe out for holders of junior AT1 bonds
Lucca De Paoli - Bloomberg
Bonds designed to insure Credit Suisse Group AG against disaster could outlive the bank. Credit Suisse's Operational Re bonds, insurance-linked securities that cover the bank against perils such as falling victim to fraud and accounting errors, should remain unaffected by the bank's government-brokered sale to UBS Group AG, according to rating agency DBRS Morningstar.
/jlne.ws/3lUI3Xw
BofA Names Jill Schwartz Co-Head of Global Financial Sponsors; Appointment follows exit of Kevin Sherlock for senior BMO role; Schwartz, an executive vice chair, joins Saba Nazar as co-head
Gillian Tan - Bloomberg
Bank of America Corp. named Jill Schwartz co-head of global financial sponsors, replacing Kevin Sherlock. Schwartz will also keep her role as executive vice chair of global corporate and investment banking, according to a memo to staff from Thomas Sheehan, the lender's head of global investment banking. New York-based Schwartz will co-head the group, which advises on private equity deals such as leveraged buyouts and initial public offerings, alongside Saba Nazar. A Bank of America spokesman confirmed the memo's contents and declined to comment further.
/jlne.ws/40FCUBr
Schwab Wins $7 Million From Morgan Stanley and Former Advisers
Joe Schneider - Bloomberg
Charles Schwab Corp. won more than $7.3 million from Morgan Stanley and two financial advisers it accused of stealing trade secrets when they moved to the latter firm in 2019. The arbitration award in favor of Schwab was disclosed Friday in a New Jersey federal court filing by Morgan Stanley, which is seeking to confirm the amount and move on from the dispute. But the bank said the two advisers, Christopher Armstrong and Randall Kiefner, who it fired for violating its transition policy, are still refusing to pay their share.
/jlne.ws/3ZnZ1eP
SVB staff claim they got up to 50% of their salaries in company equity-now some may have have lost millions in its collapse
Eleanor Pringle - Quartz
Thankfully for clients of Silicon Valley Bank, there's light at the end of the tunnel: Their money will be backstopped by the government. But for the SVB staff who managed those accounts, there's no silver lining in sight. The failure of SVB-a key lender to startups-and NYC-based Signature Bank earlier this month prompted an intervention from the Federal Deposit Insurance Corporation (FDIC) to protect depositors' funds, but questions remain around the strength of the American banking sector.
/jlne.ws/3JTiZIm
JPMorgan's Coleman Favors Junk Bonds If There's a US Recession; Likely to add exposure in high-yield credit when time is right; Would buy mining, autos as sectors to get a filip in upswing
Richard Henderson - Bloomberg
JPMorgan Asset Management likes high-yield bonds in the event of a US recession, hoping to stock up cheaply on sectors that would outperform once the economy returns to growth. The comments by Lisa Coleman, head of investment grade credit, offer insight into how the firm plans to deploy its funds should the long-feared hard landing for the economy finally materialize. The US bank bought utility company bonds last week as part of "small adjustments" to its portfolios.
/jlne.ws/40Ysz3Z
China Anti-Graft Agency to Inspect Major State-Owned Firms; Checks to include China Investment Corp., Sinopec, PetroChina; Anti-corruption move is first of its kind since party congress
Bloomberg
China's top anti-corruption agency will inspect dozens of state-owned companies from China Investment Corp. to PetroChina Co., suggesting the government may be expanding its push to boost profits at some of the country's biggest and most important state firms. The Central Commission for Discipline Inspection said late Monday it will carry out checks on more than 30 companies, also naming China Petroleum & Chemical Corp. or Sinopec, China Everbright Group Ltd., and China Development Bank.
/jlne.ws/42PhwMe
FDIC Is Probing Management's Conduct in SVB, Signature Bank Failures; Regulators come out swinging against failed banks' management; FDIC's Gruenberg, Fed's Barr to speak before Senate on Tuesday
Stephanie Stoughton and Katanga Johnson - Bloomberg
The Federal Deposit Insurance Corp. has launched investigations into managers' conduct in the Silicon Valley Bank and Signature Bank failures. "It is worth noting that these two institutions were allowed to fail," Martin Gruenberg, the agency's chairman, said in prepared remarks for a Senate Banking Committee hearing set for Tuesday. "Shareholders lost their investment. Unsecured creditors took losses. The boards and the most senior executives were removed."
/jlne.ws/3TQMsYf
Bankers at US midsize lenders battle to keep deposits after exodus
Tatiana Bautzer and Nupur Anand - Reuters
Mid-sized U.S. lenders are getting creative as they try to hang onto customer deposits after two bank failures rattled consumers and spurred a $119 billion exodus from small institutions in recent weeks.
/jlne.ws/3TMYVMD
SVB, Signature Depositors Won't Lose Their Money. What Happens if Another Bank Fails? Regulators have said they would take similar actions if they think another bank collapse would jeopardize financial system
David Harrison - The Wall Street Journal
Federal regulators made the emergency decision earlier in March to guarantee that all depositors at failed Silicon Valley Bank and Signature Bank could get their money back, regardless of how much was in their accounts. Regulators have said they hoped the decision would prevent a broader run on banks. The intervention has prompted questions from banks, bank customers and lawmakers about the government's deposit-insurance program-and what would happen if another bank went under.
/jlne.ws/3nu0NgV
BS, Citi hire into APAC in desk reshuffles; Citi appoints a new head of markets for ASEAN; while UBS reshuffles its APAC team with a new head of global markets for Australia and a new head of derivatives and solutions for Australia.
Laurie McAughtry - The Trade
Citi has promoted Vandana Bhatter as its new head of markets for ASEAN, effective immediately. She will report to Julia Raiskin, APAC head of markets and Amol Gupte, head of South Asia and ASEAN.
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | Smart Ways to Repay Your Pandemic Small Business Disaster Loan
Arianne Cohen - Bloomberg
Almost 4 million small businesses in the US benefited from Economic Injury Disaster Loans during the pandemic, and it's time to start paying them off. The first payments are coming due on balances totaling $378 billion-plus all the interest accrued over the last 30 months. More than 673,000 loans were issued in New York and Texas alone. Some of the payments will be hefty.
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Is Coffee Bringing People Back to the Office?; Data show workers are staying in the office for coffee and here's why it may be part of return to office strategies
Julia Hobsbawm - Bloomberg
I was in New York for in-person work meetings a few weeks ago. While there were the requisite lunches and cocktails at my favorite haunts, one thing stood out: coffee. My working assumption that coffee is an unremarkable and often undrinkable aspect of working life changed when I realized that it's playing a central role in rebuilding corporate office culture in the new hybrid era.
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Generative AI set to affect 300mn jobs across major economies
Delphine Strauss - Financial Times
The latest breakthroughs in artificial intelligence could lead to the automation of a quarter of the work done in the US and eurozone, according to research by Goldman Sachs. The investment bank said on Monday that "generative" AI systems such as ChatGPT, which can create content that is indistinguishable from human output, could spark a productivity boom that would eventually raise annual global gross domestic product by 7 per cent over a 10-year period.
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The Jobs Most Exposed to ChatGPT; New study finds that AI tools could more quickly handle at least half of the tasks that auditors, interpreters and writers do now
Lauren Weber - The Wall Street Journal
Accountants are among the professionals whose careers are most exposed to the capabilities of generative artificial intelligence, according to a new study. The researchers found that at least half of accounting tasks could be completed much faster with the technology. The same was true for mathematicians, interpreters, writers and nearly 20% of the U.S. workforce, according to the study by researchers at the University of Pennsylvania and OpenAI, the company that makes the popular AI tool ChatGPT.
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Why five days in the office don't add up
Pilita Clark - Financial Times
This is a story about a man named James, a woman named Julie and anyone else still grappling with the new world of office work that Covid unleashed almost exactly three years ago. James Long is a veteran financier in London who founded a boutique clean energy financial advisory firm called Longreach Capital in 2019, just before the pandemic broke out. One of his first hires was 30-something Julie Gimenez, who was then in London working on infrastructure investments at one of Europe's largest banks.
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Big tech and the pursuit of AI dominance; The tech giants are going all in on artificial intelligence. Each is doing it its own way
The Economist
What has actually been achieved on this video call? It takes Jared Spataro just a few clicks to find out. Microsoft's head of productivity software pulls up a sidebar in Teams, a video-conferencing service. There is a 30-second pause while somewhere in one of the firm's vast data centres an artificial-intelligence (ai) model analyses a recording of the virtual meeting so far. Then an impressively accurate summary of your correspondent's questions and Mr Spataro's answers appears. Mr Spataro can barely contain his enthusiasm. "This is not your daddy's ai," he beams.
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Distress in Office Market Spreads to High-End Buildings; Amenities gave many an advantage earlier in the pandemic, but defaults and vacancies are rising as interest rates climb
Konrad Putzier - The Wall Street Journal
Defaults and vacancies are on the rise at high-end office buildings, in the latest sign that remote work and rising interest rates are spreading pain to more corners of the commercial real-estate market. For much of the pandemic, buildings in central locations that feature modern amenities fared better than their less-pricey peers. Some even were able to increase rents while older, cheaper buildings saw surging vacancy rates and plummeting values. Now, these so-called class-A properties, whose rents generally fall into a city's top quartile, are increasingly coming under pressure.
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| Wellness Exchange | | An Exchange of Health and Wellness Information | The Income Gap Is Becoming a Physical-Activity Divide; Nationwide, poor children and adolescents are participating far less in sports and fitness activities than their more affluent peers.
Matt Richtel - The New York Times
Over the last two decades, technology companies and policymakers warned of a "digital divide" in which poor children could fall behind their more affluent peers without equal access to technology. Today, with widespread internet access and smartphone ownership, the gap has narrowed sharply. But with less fanfare a different division has appeared: Across the country, poor children and adolescents are participating far less in sports and fitness activities than more affluent youngsters are. Call it the physical divide.
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | What Broke Sweden? Real Estate Bust Exposes Big Divide
Anton Wilen and Chris Reiter - Bloomberg
A half-finished bridge designed to connect two Stockholm neighborhoods has come to epitomize the seismic change Sweden is going through. On one side, an affluent neighborhood that's part of one of Stockholm's oldest suburbs, on the other, an enclave of 1970s-era public housing blocks with a dense population of migrants and a reputation as a trouble spot.
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Pakistan's weird bond premium; Sukuk and see
Mark Weidemaier and Mitu Gulati - Financial Times
Mark Weidemaier and Mitu Gulati, of the University of North Carolina and University of Virginia Law Schools, host the Clauses and Controversies podcast and often teach a joint course on sovereign debt. Several months ago, an email from a credit analyst prompted us to start looking at the terms of Pakistan's sukuk bond, which matures in 2029. We are not specialists in Islamic finance, but the bond was trading at small premium over Pakistani eurobonds. The Pakistani sukuk is not technically issued by the sovereign but is essentially a sovereign credit. We assumed the price difference was due to some temporary difference in liquidity.
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| Miscellaneous | | Stories that don't quite fit under the other sections | CFA Level I Pass Rate Ticks Up With Zero Pandemic Cancellations
Katherine Doherty - Bloomberg
The pass rate for the first level of the chartered financial analyst exam ticked up in the first period without pandemic-related cancellations since computer-based testing was introduced in 2021. In February, 38% of candidates passed the Level I test, up from a 36% success rate for those who sat for the exam in November and 37% in August, the CFA Institute said Tuesday. The latest results remain below the average pass rate for the past decade of about 41%, according to the institute.
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California lawmakers want Google, Facebook to pay news publishers for content
Ariel Zilber - NY Post
California lawmakers want Google and Facebook to pay publishers for news content - the latest sign of public discontent over the growing power of tech giants. Buffy Wicks, a state lawmaker representing Oakland, has introduced a bill that would require tech firms that profit from news content to pay media outlets a "journalism usage fee" when they sell advertising. The proposed legislation would also require content publishers to invest 70% of the proceeds from the fee in journalism jobs. "Big Tech has become the de facto gatekeeper of journalism and is using its dominance to set rules for how news content is displayed, prioritized and monetized," Emily Charrier, who heads the California News Publishers Association, told the Los Angeles Times.
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