| April 25, 2024 | "Irreverent, but never irrelevant" | | | | John Lothian
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Hits & Takes
John Lothian & JLN Staff
Over 300 ICE employees, including ICE Founder and CEO Jeff Sprecher, partnered with the Westside Future Fund, Warrick Dunn Charities, Inc., and Warrick Dunn Communities to support the revitalization of Atlanta's Westside, engaging in various volunteer activities like tree planting, gardening, community clean-up, kit assembly, and senior home repair along the historic James P. Brawley Corridor. Sprecher said, "For decades, the Atlanta community has served as an innovating and inspirational launching pad for many organizations, including ours - and ICE is honored to join forces with Westside residents to provide the resources needed to inspire continued success and impact."
My good friend Sean Smith, presently tending his gardenias after leaving Qontigo, is raising funds for Horizons National Chicago, an organization he joined last fall that seeks to advance educational equity by building long-term partnerships with students, families, communities, and schools to create experiences outside of school that inspire the joy of learning. HNC is an affiliate of Horizons National ("HN"), a national network of out-of-schoolacademic, enrichment, and social-emotional learning programs working with children and families from underserved communities. Will you join me in supporting Sean's fundraising efforts? You can do so by visiting the Horizons National Website at https://www.horizonsnational.org.
Former Profit & Loss Founder and Editor-in-Chief Julie Ros, who freelanced for JLN last year during IDX, has been hired by Templum, Inc. as its chief marketing officer. Templum is known for modernizing access to private markets and alternative assets.
Today, CFTC Commissioner Summer K. Mersinger will participate on a panel, the commodities/end-user panel at FIA's Law & Compliance Division Conference on at 3:45 p.m. - 4:45 p.m. (EDT).
The Arditti Center for Risk Management at DePaul University's Driehaus College of Business in Chicago, in partnership with the Global Association of Risk Professionals (GARP), will host a panel discussion on "Trends in AI Application and Emerging Practices for Managing AI Risk" on May 2. The panel, from 5 pm to 6 pm, will feature distinguished speakers including Christina Fernandes-D'Souza, Stefanie Drysdale, Sandeep Maira, and Joe Peedikayil. The discussion will be moderated by Cary Lyne. Registration is required for attendance, and the event will be followed by a networking reception. Admission is free. Find out more and register HERE.
SGX reports that the MSCI Singapore Free Index surged by 4.2% in March 2024, driven by strong performances from its top 5 constituents. During the same period, SGX MSCI Singapore Index Futures (SiMSCI) reached a 2.5-year high of US$4.5 billion (209k contracts), up from US$2.9 billion (143k contracts) since January 2024. March also saw a robust Daily Average Volume (DAV) of 63k contracts (US$1.4 billion), marking the second consecutive month exceeding 60k, the highest since October 2022. SGX also suggests SiMSCI provides global investors with efficient trading opportunities, offering round-the-clock trading and enhanced capital efficiency through cross-product margining.
Hong Kong Exchanges and Clearing Limited (HKEX) reported a new record for HKEX's Hang Seng TECH Index Options yesterday with 20,205 contracts traded, doubling the previous record of 9,077 contracts traded on 17 January this year.
What do you do when you are the CEO of the company, and thus can't be a whistleblower and earn the CFTC's whistleblower award? You sell $65 million of stock to buy your own yacht. That is exactly what Richard Handler, the CEO of Jefferies Financial Group Inc. did, according to a Bloomberg story. For the record, Bloomberg reports, "It's the first stock sale Handler has made in the 34 years he's been at Jefferies, except for those used for tax purposes and charitable donations, the New York-based firm said. Proceeds from Wednesday's sale are being used to buy a personal boat and pay tax obligations, Jefferies said." And in an ironic twist on the question "Where are the customer's yachts?," Handler is buying the yacht from a customer, the Financial Times reports.
One of the four office buildings I spent my career in has been sold for a pittance compared to its last sale. The 216 West Jackson Building sold for $2.5 million, Crain's Chicago Business reported, down from $22.3 million in 2013. This building was the home of First American Discount, which is the firm I worked for in the 1980s. Rosenthal Collins was also in the building, as Les Rosenthal was half-owner of FADC and cleared its trades.
I think whoever bought the building received a great deal, and even though it is not a newer building with all the bells and whistles, it could be a great location for startups looking for a Loop location, close to the trains and near the State Street colleges.
Meanwhile, 65 E. Wacker, which was slated to be converted from offices to residential, was handed back to the lender, Crain's also reported. This threw a wrench "for a project once seen as a potential model for the office-to-residential conversions city leaders are pushing downtown," Crain's reported.
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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In a widely reported action, the Environmental Protect Agency (EPA) today finalized a "Suite of Standards to Reduce Pollution from Fossil Fuel-Fired Power Plants." In its announcement, the EPA said these rules were finalized under authorities including the Clean Air Act, Clean Water Act, and Resource Conservation and Recovery Act. The rules will significantly reduce climate, air, water, and land pollution from the power sector, the agency said.
The final rules include:
- Ensuring coal-fired plants control 90% of their carbon pollution for long-term operation and new gas-fired plants.
- Strengthening Mercury and Air Toxics Standards (MATS) for coal plants, reducing toxic metal emissions by 67% and mercury emissions from existing sources by 70%.
- Reducing pollutants in wastewater from coal plants by over 660 million pounds annually, improving water quality, especially in environmental justice communities.
- Requiring safe management of coal ash in previously unregulated areas to prevent groundwater contamination.
View the EPA news release here. Read media reports in our item under "Leads." ~SAED
Our most read stories from our previous edition of JLN Options were:
- Ex-Jane Street Trader Pillories Claims He Stole Trade Secrets from Bloomberg.
- Reluctant Traders Protect Themselves From Further Market Mayhem from Bloomberg.
- ANALYSIS: MetroTrade eyes opportunity in US retail futures broking from FOW. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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Hidden Road's Litman discusses expansion into listed derivatives and its new Route 28
JohnLothianNews.com
JLN spoke with Laine Litman, president of Hidden Road, at the FIA Futures Industry Conference in Boca Raton in March about the company's work establishing a global trade network for institutions across asset classes and products. Using quantitative technology, the firm seeks to increase efficiency and transparency in the market through better access to data, credit, capital, and a more efficient flow. The interview was part of the JLN Industry Leader video series, sponsored by Wedbush.
Watch the video »
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Options Discovery Episode 33: Multi-leg Options Strategies, Volatility, and Corporate Actions; Mark Benzaquen, Principal of OCC Education, Discusses This and More With JLN's Asma Awass.
JohnLothianNews.com
In this episode of Options Discovery, Asma Awass talks about topics that newer and intermediate traders should familiarize themselves with. This episode includes a breakdown of a few multi-leg options strategies, volatility, and the most common corporate actions. Asma then sits down with Mark Benzaquen, Principal of OCC Education, who goes deeper into these topics. You can learn more about OCC Education here: https://www.theocc.com/company-information/investor-education
Watch the video »
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Multi-leg Options Strategies, Volatility, and Corporate Actions; Mark Benzaquen, Principal of OCC Education, Discusses These Topics In This Options Discovery Full Interview
JohnLothianNews.com
In this Options Discovery full interview, Asma Awass speaks with Mark Benzaquen, the Principal of OCC Education. Doug talks more about his career in the options industry as well as the educational curriculum that he has launched with the OCC. Mark also digs deeper into different multi-leg strategies, how traders can approach volatility, and how common corporate actions can affect options pricing. You can learn more about OCC Education here: https://www.theocc.com/company-information/investor-education
Watch the video »
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How to Get a Meeting With the UAE's $1.5 Trillion Man; Abu Dhabi royal Sheikh Tahnoon controls a massive pile of private and state assets-and his gatekeepers can make or break a deal.
Ben Bartenstein - Bloomberg
Abu Dhabi's Sheikh Tahnoon bin Zayed Al Nahyan is one of the most sought after people in the Middle East. Money managers and financiers flying into the United Arab Emirates from Hong Kong, London or New York yearn for even a 10-minute meet-and-greet. A lucky few might get to be guests aboard his superyacht, Maryah, where he likes to play chess as the sun glistens on the Persian Gulf. Slim and sporty in his trademark sunglasses, the scion of the world's richest family oversees state assets and private funds that add up to more than $1.5 trillion. The opportunity to invest even a sliver of that wealth could yield plump fees and returns.
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***** A $1.5 trillion man sounds like the bionic man from the 1970s television show built by the same U.S. Army supply officers who bought $400 hammers and $1000 toilet seats.~JJL
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"AI Day" To Be Held at May 2 CFTC Technology Advisory Committee Meeting
CFTC
Commissioner Christy Goldsmith Romero, sponsor of the Commodity Futures Trading Commission's Technology Advisory Committee (TAC), announces "AI Day" to be held at the CFTC's Washington, D.C. headquarters on May 2, 2024, during a TAC meeting. AI Day will take place from 1:00 p.m. to 4:00 p.m. (EDT). The public is invited to come in person or watch the meeting via live webcast at CFTC.gov. AI Day is a continuation of the TAC's study of AI, and the concept of Responsible AI in financial markets. Confirmed speakers include experts in AI who are members of the TAC:
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***** I am not sure why I want to start singing "You can call me AL" by Paul Simon, but I do.~JJL
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FIA cautions CFTC on regulation of AI
FIA
FIA recommends "technology-neutral" approach to regulation; FIA says CFTC should focus on "outcomes and use cases" rather than AI itself; FIA letter joined by CME, ICE and FIA PTG
Washington, D.C. - FIA today responded to a request for comment from the Commodity Futures Trading Commission on the uses of artificial intelligence in derivatives markets. FIA welcomed the CFTC's decision to seek feedback from the public before determining whether additional regulation is needed, and encouraged the agency to continue gathering information to help it better understand the current and potential uses for AI as well as the risks that may arise.
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***** FIA can show up in person and caution the CFTC on May 2, while humming "You can call me AL."~JJL
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Wednesday's Top Three
Our top story Wednesday was Bloomberg's China Snowballs and Their Role in This Year's Stock Selloff: Q&A. Second was the CFTC notice Commissioner Goldsmith Romero to Participate on an AI Panel at FIA's Law & Compliance Conference. (That took place yesterday at 2:45 p.m. EDT.) Third was the Financial Times' Employee non-compete agreements barred by US regulator.
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| Lead Stories | CFTC Weighs Outright Ban for Derivatives Bets on US Election; Regulator is drafting a proposal for events contracts; Agency pushes to clarify restrictions on binary options
Lydia Beyoud - Bloomberg
A top Wall Street regulator is considering an outright ban on using derivatives to bet on US elections as part of a crackdown on so-called event contracts, according to people familiar with the plans. The Commodity Futures Trading Commission's draft proposal would boost oversight of the contracts that have let people wager on real-world outcomes such as monetary policy, lunar landings and music awards. Beyond elections, the CFTC may also prohibit some contracts on sports and calamities such as global health crises, said the people, who asked not to be identified discussing the internal deliberations.
/jlne.ws/3UxOr5B
Tokyo Exchange Courts Asian Startups for IPOs; The exchange is working with banks and other partners to select a few startups from other parts of Asia this summer
Kosaku Narioka - The Wall Street Journal
The Tokyo Stock Exchange aims to attract listings from Asian startups, leveraging the market's recent ascent to record highs and positioning itself as a preferred fundraising destination for companies outside Japan. Under a new initiative, the exchange is working with banks and other partners to select a few startups from other parts of Asia this summer to help them grow their business for potential initial public offerings down the road, said Hiromi Yamaji, group chief executive of Japan Exchange Group, the parent company of the Tokyo exchange.
/jlne.ws/3WfMBYl
Lutnick Lands Wall Street Giants for His Futures Fight With CME
Katherine Doherty and Sridhar Natarajan - Bloomberg
Howard Lutnick is lining up some of Wall Street's biggest power players for a fresh challenge to the behemoth of futures trading and interest-rate derivatives, CME Group Inc. The chief executive officer of Cantor Fitzgerald got backing from Bank of America Corp., Barclays Plc, Citadel Securities, Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co., and Jump Trading as he prepares to launch his new futures exchange. The firms invested $172 million for a 25.75% stake in FMX, which increases as they use the platform. The business is part of BGC Group Inc., a brokerage spun off from Cantor Fitzgerald in 2004 and led by Lutnick.
/jlne.ws/49RSDl1
Ten global investment banks and market making firms join BGC in the creation of FMX to launch premier U.S. Treasury and U.S. Interest Rate Futures trading marketplace; FMX closes transaction with strategic investors at a $667 million post-money equity valuation
BGC Group, Inc.
BGC Group, Inc. (Nasdaq: BGC) today announced that Bank of America, Barclays, Citadel Securities, Citi, Goldman Sachs, J.P. Morgan, Jump Trading Group, Morgan Stanley, Tower Research Capital, and Wells Fargo have become minority equity owners of FMX, with a post-money equity valuation of $667 million. FMX combines BGC's U.S. cash treasuries platform with its spot foreign exchange platform and U.S. interest rate futures exchange, and will leverage BGC's proven low latency trading infrastructure and global distribution to further support liquidity in the interest rate futures market.
/jlne.ws/3WhVOzo
Employee non-compete ban challenged in court by US business groups; Lawsuit from US Chamber of Commerce and other groups argues rule approved by FTC will hurt business and economy
Amelia Pollard - Financial Times
The US Chamber of Commerce and other trade groups sued the Federal Trade Commission on Wednesday after the regulator voted to ban non-compete agreements. The coalition, which filed the lawsuit in a federal court in Texas, argued that it would be adversely affected by the ban because it would curb their members' ability to "protect their confidential information" and "investments in the workforce".
/jlne.ws/3Ux1Gn0
A reformed stock market would unleash Britain's growth; Keeping growth companies onshore would boost the FTSE and the UK economy
David Crook - Financial Times
The UK has had remarkable success in founding and nurturing tech and growth companies. It ranks third in the world for the number of start-ups, behind only the US and China, and way ahead of European rivals. It's also the third-biggest destination in the world for venture capital investment. It maintains this strength when companies are a stage further along: it has the fourth largest number of $1bn-plus private companies - "unicorns" - in the world. But when these companies are more mature and listed on the major exchanges, the country falls woefully short.
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Flows to European ESG exchange traded funds halve in first quarter; Allocations represented only 16% of total new money garnered by ETFs, down from 65% during highs of 2022
Alf Wilkinson - Financial Times
European investor allocations to environmental, social and governance exchange traded funds slowed down in the first quarter of 2024 as the sector endures an "existential crisis", Morningstar research shows. Net flows into ESG ETFs totalled EUR7.1bn in the first quarter, down from EUR13.8bn in the previous three-month period.
/jlne.ws/3w7JVBs
Biden administration finalizes new rules for power plants in one of its most significant climate actions to-date
Ella Nilsen and Jen Christensen - CNN
The Biden administration on Thursday finalized a highly anticipated suite of rules to cut hazardous, planet-warming pollution generated by power plants in one of its most significant environment and climate actions to-date. The Environmental Protection Agency's new rules will compel coal and new natural gas power plants to either cut or capture 90% of their climate pollution by 2032. The rules are expected to reduce the carbon dioxide emissions from the sector by 75% compared to its peak in 2005.
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*****Here is this story from Bloomberg, The New York Times, National Public Radio, Financial Times, The Washington Post, Reuters, Axios, and The Wall Street Journal.
European Energy Exchange lists Asia LNG futures, eyeing Japan demand; Bourse hopes to tap into hedging transactions by Japanese power companies
Yusei Sanada - Nikkei
The European Energy Exchange (EEX) is trying to capture demand from Japanese power companies looking to hedge against liquefied natural gas and electric power price fluctuations with the recent listing of East Asian LNG futures. Japanese power futures trading has been increasing somewhat on the EEX, the world's largest electric power exchange. It also listed Japan/Korea Marker (JKM) futures, a liquefied natural gas index, on April 15.
/jlne.ws/3Uc9gCd
Nasdaq reshuffles tech divisions post-Adenza; Adenza is now fully integrated into the exchange operator's ecosystem, bringing opportunities for new business and a fresh perspective on how fintech fits into its strategy.
Nyela Graham - Waters Technology
The story of capital markets is a story of evolution. Burgeoning asset classes, emerging technologies, and new regulatory requirements mean that the financial institutions of the 21st century are not the same as those of the previous one. Over the past six years, exchange operator Nasdaq has purchased six tech outfits, including the anti-money laundering and fraud platform Verafin, alternative data provider Quandl, and eVestment, a buy-side analytics provider. Last June, that M&A spree was capped
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California investor buys distressed office building near Willis Tower at fire-sale price
Danny Ecker - Crain's Chicago Business
A California real estate investor has purchased a distressed office building half a block from Willis Tower for 89% less than it traded for more than a decade ago, the latest example of the extreme losses that remote work and higher interest rates have dealt to office property values. Los Angeles-based Brog Properties this week paid $2.5 million in cash for the vintage 10-story office building at 216 W. Jackson Blvd., managing member Andrew Brog confirmed. The sale price - just below $13.50 per square foot - for the mostly vacant building is a fraction of the $22.3 million the property last sold for in 2013.
/jlne.ws/3W9dXPZ
Loop office tower slated for residential conversion handed back to lender
Rachel Herzog - Crain's Chicago Business
A New York real estate firm has surrendered a Loop office tower that it planned to partially convert into 144 apartments, throwing a wrench into plans for a project once seen as a potential model for the office-to-residential conversions city leaders are pushing downtown. A venture of Rochester, N.Y.-based Intersection Realty Group handed the 24-story office building at 65 E. Wacker Place over to lender Acres Capital through a deed-in-lieu-of-foreclosure agreement executed March 29, according to Cook County property records.
/jlne.ws/3UxxZlR
Canary Wharf offices lose £900mn of value; Docklands financial estate secures backing from lenders for £550mn debt deal against backdrop of falling valuations
Joshua Oliver - Financial Times
More than £900mn has been wiped off the value of Canary Wharf Group's office buildings, as the financial district landlord secured backing from lenders for a £553mn debt deal. The developer and manager of the London docklands estate - owned by Brookfield and the Qatar Investment Authority - on Thursday reported a 14.7 per cent annual fall in the value of its property holdings to £6.8bn in 2023.
/jlne.ws/3QkIWVz
US agency to vote to restore net neutrality rules
David Shepardson - Reuters
The U.S. Federal Communications Commission will vote Thursday to reinstate landmark net neutrality rules and assume new regulatory oversight of broadband internet rescinded under former President Donald Trump. The commission voted 3-2 in October to advance the proposal to reinstate open internet rules adopted in 2015 and re-establish the commission's authority over broadband internet. The FCC will vote to give final approval Thursday.
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Europe's euro 1 Million Bankers Club Is More Than 90% Male
Nicholas Comfort - Bloomberg
Fewer than one in 10 of Europe's best-paid bankers are female, new research shows, highlighting the wide gender pay gap in the financial services industry. Just 183 out of 2,017 people earning more than euro 1 million ($1.1 million) were female in 2022, according to data published by the European Banking Authority on Thursday. It's the first time the institution has provided a gender breakdown in its annual high-earners report.
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Jefferies boss sells $65mn in stock to buy a customer's yacht; Purchase shines light on wealth accumulated by longtime chief executive Rich Handler
Joshua Franklin - Financial Times
Jefferies chief executive Rich Handler has sold $65mn of his stock in the Wall Street investment bank to buy a luxury yacht from longtime client Tilman Fertitta. Handler said on Wednesday that he had sold 1.5mn shares, about 7 per cent of his total holdings in Jefferies, at $43.50 each. This was the first time he has sold shares in the bank other than for charitable or tax purposes.
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Combating liquidity challenges in Europe requires caution especially when considering alternative means of trading; TradeTech 2024 panellists agreed markets must continue to innovate but warned around potential unintended consequences that could arise from innovation.
Wesley Bray - The Trade
The creation of private rooms where members can trade bilaterally behind closed doors and the impact this would have on liquidity was a key theme addressed at TradeTech Europe 2024, with panellists discussing whether such methods can be considered fair and equitable. "We're not talking about multilateral trading opportunities. Therefore, it means that there's clearly going to be more business taken away from the public markets," said James Baugh, managing director, head of European market structure at TD Cowen.
/jlne.ws/49NAoNT
When it comes to desk set-ups, buy-siders are readjusting how derivatives fit in; With derivatives arguably less exotic than in times gone by, firms are adapting execution styles and hoping for a more interconnected future for the European equities space.
Claudia Preece - The Trade
When it comes to desk organisation, where derivatives fit in has been a key focal point for firms in recent times, with key buy-siders unpacked their approach to managing the evolving asset class on a TradeTech panel this week. Eric Boess, global head of trading at Allianz Global Investors, explained that the firm set out with a "classic" set up when trading began in 1996/97: "We had equities, fixed income, FX and money markets and we had a dedicated derivatives desk at the time because we had very derivatives-heavy product suite [...] that derivatives team ran portfolios with portfolio management responsibilities."
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Ukraine launches military charm offensive as conscription flags
Dan Peleschuk - Reuters
Far from the trenches, at orderly new centres across Ukraine, civilian recruiters armed with laptops and info packs offer patriotic volunteers opportunities to join the war. As Ukraine's efforts to conscript enough men to fight Russia are stymied by public scepticism, defence officials and military units are embarking on a multi-pronged charm offensive to recruit a citizens' army to resist the invasion. This softer call-up is being conducted on job-search sites and outreach centres, as well as billboards and social media, and offers a wartime novelty: an element of choice.
/jlne.ws/3Ux06BS
Russia will strike in unexpected places this summer, Ukraine says
Reuters
Russian troops will strike in unexpected parts of the front when they conduct their summer offensive in Ukraine and could try to advance on the northeastern city of Kharkiv, the commander of Ukraine's National Guard said on Tuesday. Ukraine's second largest city has been pounded by missiles and drones in recent weeks, but Kyiv's forces will be prepared to thwart any assault, Oleksandr Pivnenko said. "We are getting ready. Yes, the enemy will give us unpleasant surprises. It will operate in areas where we do not expect it. But it will not achieve its goal," he told the Ukrainian news outlet Liga.net.
/jlne.ws/3QgJE68
The US secretly slipped ATACMS to Ukraine with more to come, putting high-value Russian targets in danger
Jake Epstein - Insider
The US is slated to send Ukraine more of the powerful long-range tactical ballistic missiles that Kyiv's forces have used to devastate Russian airfields in strikes deep behind the front lines. President Joe Biden on Wednesday cleared the last obstacle for Ukraine to receive additional aid, including MGM-140 Army Tactical Missile Systems, also known as ATACMS, as part of a crucial influx of military aid to the country.
/jlne.ws/3UdnfHV
Russia to push Ukraine further back if Kyiv gets long range U.S. missiles, says Kremlin
Reuters
Russia will need to push Ukrainian forces further back and expand what it regards as a "buffer zone" if Kyiv takes delivery of advanced longer-range ATACM guided missile systems from the United States, the Kremlin said on Wednesday.The White House last October said it had provided Kyiv with a type of ATACMS capable of hitting targets up to 165 kilometres (102 miles) away. But a new U.S. package being prepared now after a long-delayed aid bill was approved by Congress is expected to include a longer 300 km (186-mile) range type.
/jlne.ws/3Ucp2NA
Kremlin says U.S. long-range missiles sent to Ukraine will not change war's outcome
Reuters
The Kremlin said on Thursday that deliveries of U.S. long-range Army Tactical Missile Systems (ATACMS) to Ukraine would not change the outcome of the war but would create more problems for Ukraine itself. The United States in recent weeks secretly shipped long-range missiles to Ukraine, which has so far used them twice, a U.S. official said on Wednesday.
/jlne.ws/3WgsHwy
Audacious Ukrainian drone attacks keep doing massive damage to Russia's oil industry
Tom Porter - Business Insider
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Hamas official says group would lay down its arms if an independent Palestinian state is established
Abby Sewell - AP News
A top Hamas political official told The Associated Press the Islamic militant group is willing to agree to a truce of five years or more with Israel and that it would lay down its weapons and convert into a political party if an independent Palestinian state is established along pre-1967 borders.
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | CME Group's adjusted profit beats on rising US Treasuries-related derivatives demand
Reuters
Exchange operator CME Group beat first-quarter profit estimates on Wednesday, helped by record growth in futures and options contracts tied to U.S. Treasuries and higher commodity markets trading activity. While hopes of a "soft landing", where inflation falls without a recession or big job losses, have firmed up over the past few months, the trajectory of interest rates continues to be uncertain as investors assess the latest economic data.
/jlne.ws/3WezFC6
Nasdaq's Profit Falls as Shaky Economy Keeps IPO Revival Elusive; Profit fell for the first time in a year, missing expectations; Number of firms listed on Nasdaq drops 33% from year ago
Redd Brown - Bloomberg
Nasdaq Inc.'s profit fell for the first time in a year as firms continue to wait for the economy to stabilize before going public. Earnings fell to 63 cents a share from 69 cents a year ago, the company said in a statement, below an expected 65 cents. Revenue from Nasdaq's data and listing segment, which houses its trading exchanges, was largely flat from a year ago and also fell short of projections.
/jlne.ws/44hPpWP
Cboe Global Markets Realigns Digital Asset Business, Leveraging Strength and Expertise in Derivatives and Clearing
Cboe Global Markets
Company plans to transition digital asset derivatives trading and clearing into existing derivatives and clearing business lines. Plans to wind down Cboe Digital Spot Market in third quarter 2024. Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today announced plans to refocus its digital asset business to leverage its core strengths in derivatives, technology and product innovation while realizing operating efficiencies for both Cboe and its clients. These changes are being made as part of Cboe's strategic review, taking into consideration the lack of regulatory clarity in the digital space, and are aligned with Cboe's longer term strategy.
/jlne.ws/3UvfnTw
New Product Summary: Initial Listing of Three (3) Bloomberg Credit Index Futures Contracts - Effective June 17, 2024
CME Group
Initial Listing of Three (3) Bloomberg Credit Index Futures Contracts.
/jlne.ws/3WwlAAj
Deutsche Boerse and Nodal Exchange partner to offer premium range of market data
Deutsche Boerse
Partnership provides Deutsche Boerse access to market data from Nodal Exchange. Deutsche Boerse's clients will benefit from enhanced offering, now including US power and environmental market data. Partnership is scheduled to go live on 1 May 2024. Deutsche Boerse announces a collaboration with Nodal Exchange, a leading North American commodity derivatives exchange which is part of the EEX Group. As part of this collaboration, Deutsche Börse will provide access to a broad range of futures & options data in US energy and environmental markets through its proven data platform and vendor network.
/jlne.ws/44gLfP9
Financial year 2023: EEX Group strengthens global position across all asset classes
EEX
EEX Group reports strong financial results for 2023 with a 19% overall growth in total revenues, reaching EUR 575.6 million (2022: EUR 482.4 million), thanks to continued trading volume growth across all asset classes and geographies. Earnings before interest and taxes (EBIT) increased to EUR 306.4 million (+28%). The strongest drivers included power and natural gas trading, as well as the Group's North American commodity markets. In particular, the rising number of trading participants active on the EEX Group markets contributed to the positive development, with over 80 trading participants joining the EEX markets last year.
/jlne.ws/4deycSj
JSE Investment Challenge Announces First Monthly Winners for 2024
Johannesburg Stock Exchange
The first round of monthly winners for the prestigious JSE Investment Challenge in 2024 have achieved phenomenal results, with one team, the 'Wall Street Pedestrian', accomplishing double-digit growth in their portfolio. The team, comprising a duo from the University of Johannesburg (UJ), claimed top honours in the 'Spectacular Portfolio University' category, setting a high benchmark of 13.89% equity growth in the first month of the competition. Phindokuhle Mkhonza and Willford Gwabeni, who is also visually impaired, were able to adapt quickly to market changes by exploiting short-term opportunities offered by listed companies that consistently outperform others.
/jlne.ws/3JzEcYf
Scheduled Dates for Annual General Shareholders Meetings of TSE-listed Companies Whose Fiscal Year Ended March 2024
Japan Exchange Group
Every year, Tokyo Stock Exchange, Inc. (TSE) conducts an Annual General Shareholders Meeting Survey of TSE-listed companies whose fiscal year ends in March. Based on the responses, it then makes available on the Japan Exchange Group (JPX) website a list of scheduled dates for said companies' annual general shareholders' meetings and other related information. We are pleased to announce that we have compiled the trends of this year's annual general shareholders' meetings as indicated in the following attachment.
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Further Details On Warranting And Trading Of Russian Metal On The LME
London Metal Exchange
Summary. 1. Further to Notice 24/171, this Notice provides additional details in respect of the London Metal Exchange's ("LME") response to the recently introduced UK sanctions on Russian metals. Defined terms and Notice scope. 2. This Notice sets out the LME's further understanding of how the UK legislation, trade licences and guidance affect the position of Russian metal for the LME, LME Clear, Members and Clients.1 This Notice does not constitute legal advice or guidance and should not be relied upon in this way by any person. Individuals and/or entities should seek independent legal advice and conduct their own assessment as to the applicability of the sanctions to their operations. The Notice also does not cover restrictions imposed by other jurisdictions, or other UK sanction or tariff actions.
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London Stock Exchange Group plc: Q1 2024 Trading Update
London Stock Exchange Group
Good start to the year, driven by solid performance across the business. David Schwimmer, CEO said: "We have started the year well, delivering another quarter of solid growth consistent with our plans. We drove the strongest performances in FTSE Russell, Risk Intelligence and Tradeweb, and our Equities business returned to growth. The rapid pace of innovation continues, with new product launches across LSEG throughout 2024.
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London Stock Exchange Group plc Annual General Meeting 2024
London Stock Exchange Group
At today's AGM, LSEG's Chairman, Don Robert, and CEO, David Schwimmer have made the following remarks. Good morning, everyone. Welcome to London Stock Exchange Group's Annual General Meeting. Let me begin by introducing my colleagues here today, from your left to your right: Scott Guthrie, Val Rahmani, William Vereker, Cressida Hogg, David Schwimmer, Lisa Condron, Dominic Blakemore, Michel-Alain Proch, Kathleen DeRose, and Tsega Gebreyes.
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Result of AGM
London Stock Exchange Group
All resolutions proposed at the Annual General Meeting of the Company held on 25 April 2024 were passed by shareholders. Resolutions 1 - 20 were passed as Ordinary Resolutions and Resolutions 21 - 25 as Special Resolutions.
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Nasdaq Announces 9% Increase in Quarterly Dividend to $0.24 Per Share
Nasdaq
The Board of Directors of Nasdaq, Inc. (Nasdaq: NDAQ) has declared a regular quarterly dividend of $0.24 per share on the company's outstanding common stock, a 9% increase from the previous quarter. The dividend is payable on June 28, 2024 to shareholders of record at the close of business on June 14, 2024. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by the Board of Directors.
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Nasdaq Reports First Quarter 2024 Results; Strong Execution Delivers Double-Digit Solutions Revenue Growth
Nasdaq
Nasdaq, Inc. (Nasdaq: NDAQ) today reported financial results for the first quarter of 2024. First quarter 2024 net revenues1 were $1.1 billion, an increase of 22% over the first quarter of 2023, up 6% organically2 or 7% on a pro forma3 basis, including Adenza in the first quarter of 2023 results for Nasdaq. This included Solutions4 revenue increasing 35%, with organic growth of 11% or 13% on a pro forma basis.
/jlne.ws/3UvMAOQ
Nasdaq Announces Mid-Month Open Short Interest Positions in Nasdaq Stocks as of Settlement Date April 15, 2024
Nasdaq
At the end of the settlement date of April 15, 2024, short interest in 3,081 Nasdaq Global MarketSM securities totaled 11,407,213,969 shares compared with 11,297,406,980 shares in 3,102 Global Market issues reported for the prior settlement date of March 28, 2024. The mid-April short interest represents 3.20 days compared with 2.78 days for the prior reporting period.
/jlne.ws/4dhga1Z
Nodal Exchange Announces Cooperation with Deutsche Boerse Market Data + Services
Nodal Exchange
Nodal Exchange announces a collaboration with Deutsche Börse in which Deutsche Börse will provide access to a broad range of Nodal futures & options data in the U.S. energy and environmental markets through its proven data platform and vendor network. This offering will include major power hubs across the United States, as well as, renewable energy certificates, carbon emission allowances, voluntary carbon credits, and renewable fuel credits. Nodal Exchange, a leader in innovation, offers the largest set of electric power locational (nodal) futures contracts and the largest set of environmental contracts in the world. Nodal is the market leader in North American power futures holding the majority of U.S. power open interest.
/jlne.ws/3xUqrAY
NSE Academy Limited collaborates with Oxford University Press to offer skill development courses for individuals and organisations
National Stock Exchange of India
NSE Academy Limited (NAL), a wholly owned subsidiary of the National Stock Exchange (NSE) has signed an agreement with Oxford University Press (OUP) to offer joint certificate courses on indemand professional skills for professionals and students. Under this collaboration, short courses of OUP on key professional skills such as Design Thinking, Negotiation, Problem Solving, Creative Thinking, and Storytelling among others, will be offered through NSE Knowledge Hub, an AI-powered learning experience platform. NAL and OUP will cocertify candidates who successfully complete these short duration self-paced courses.
/jlne.ws/3xOFxrI
FISL Preview: securities lending markets, routes, and structures set for 2024 shake-up
The OCC
Ahead of the 2024 Finadium Investors in Securities Lending (FISL) conference, our Head of Securities Lending, Oberon "Obie" Knapp, sat down with Finadium to discuss key themes and areas of focus at the event. We hope you'll join Obie and OCC at FISL in New York City on Thursday, May 9. Alongside industry leaders across the securities finance ecosystem, he'll be sharing his unique insights on securities loans during a breakout session on the evolution of central clearing and a panel discussion on routes to market. Register here.
/jlne.ws/49Q8nFq
Caution for Investors
MCX Metal and Energy
This is in continuation to the MCX Press Release dated February 10, 2023. It has been brought to the notice of the Exchange that an entity named "Delta Trade"/ "Delta 8 Stock Height" is operating through mobile numbers 9910194030, 8999324097, +16625544141, +19526979696 and 8238236005, and with the help of mobile application: "Delta Trade Application" allegedly providing illegal dabba trading platform and misusing the Multi Commodity Exchange of India Ltd. (MCX) brand name.
/jlne.ws/4b9wKyW
The volume of transactions on the over-the-counter bond market with the central counterparty exceeded 2.5 trillion rubles
MOEX
The total volume of transactions in the over-the-counter bond market with the central counterparty (CCP) has exceeded 2.5 trillion rubles since the launch of the service two years ago - April 25, 2022. During this period, the number of trading participants using the service grew to 120 companies that entered into more than 30 thousand bond transactions.
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Micron Clinches Total of up to $13.6 Billion in US Grants, Loans; Award is part of Chips Act bid to revitalize US manufacturing; Memory-chip maker investing $125 billion in Idaho, New York
Mackenzie Hawkins and Ian King - Bloomberg
The US plans to award Micron Technology Inc. $6.1 billion in grants and as much as $7.5 billion in loans to help the memory-chip maker build new American factories, rounding out a slew of major federal awards for advanced semiconductor manufacturing.
/jlne.ws/3xLaQDy
Participants shore up plans of action as trading data costs and requirements continue to grow; With the relationship between data and technology more intrinsically linked than ever, expert panellists at TradeTech 2024 analysed how to best confront rising costs and leverage the tools on offer to improve execution.
Claudia Preece - The Trade
As technological tools continue to evolve at an ever-increasing pace, market participants are continuing to feel the pressure to decide on a strategy and future-proof their business to avoid being left behind. Daniel Leon, global head of trading, treasury management and global solutions at HSBC Asset Management highlighted that his firm's approach has been in large part to outsource data "onboarding".
/jlne.ws/3QkF2Ma
Consolidated tape: Avoiding a 'garbage in and garbage out exercise'; TradeTech panellists discussed ongoing market structure changes within Europe including the need for good data when developing a consolidated tape and whether too much fragmentation could be detrimental to the European market landscape.
Wesley Bray - The Trade
A key discussion point at TradeTech Europe this week was the ongoing push for a consolidated tape and how this can help improve market structure within Europe. However, panellists noted various areas that need to be addressed to ensure a consolidated tape would be successful. "Before a tape, we need a drastic cleaning of the data in order to make sure that the tape is simply not a garbage in garbage out exercise," said Emilie Rieupeyroux, head of market strategy, cash equities and data services at Euronext.
/jlne.ws/3WagFET
Why code-testing startup Nova AI uses open source LLMs more than OpenAI
Julie Bort - TechCrunch
It is a universal truth of human nature that the developers who build the code should not be the ones to test it. First of all, most of them pretty much detest that task. Second, like any good auditing protocol, those who do the work should not be the ones who verify it. Not surprisingly, then, code testing in all its forms - usability, language- or task-specific tests, end-to-end testing - has been a focus of a growing cadre of generative AI startups. Every week, TechCrunch covers another one like Antithesis (raised $47 million); CodiumAI (raised $11 million) QA Wolf (raised $20 million). And new ones are emerging all the time, like new Y Combinator graduate Momentic. Another is year-old startup Nova AI, an Unusual Academy accelerator grad that's raised a $1 million pre-seed round. It is attempting to best its competitors with its end-to-end testing tools by breaking many of the Silicon Valley rules of how startups should operate, founder CEO Zach Smith tells TechCrunch.
/jlne.ws/4aRqo7m
Nvidia acquires AI workload management startup Run:ai for $700M, sources say
Kyle Wiggers, Ingrid Lunden - TechCrunch
Nvidia is acquiring Run:ai, a Tel Aviv-based company that makes it easier for developers and operations teams to manage and optimize their AI hardware infrastructure. Terms of the deal aren't being disclosed publicly, but two sources close to the matter tell TechCrunch that the price tag was $700 million. CTech reported earlier this morning the companies were in "advanced negotiations" that could see Nvidia pay upwards of $1 billion for Run:ai. Evidently, the negotiations went off without a hitch, apart from a possible price change.
/jlne.ws/3WgNPTc
How to use ChatGPT for investing: From graphs to calculations
Dominic Diongson - The Street
As artificial intelligence (AI) becomes more pervasive in everyday use, we wondered just how helpful ChatGPT might be for individual investors. Professional services such as the Bloomberg Terminal have long been used by financial institutions and wealthier investors, but services like these are typically out of reach for small-time investors.
/jlne.ws/4d9HlLT
Caught Between the US and China, a Powerful AI Upstart Chooses Sides; Abu Dhabi-based G42 found it could no longer play for both teams.
Mark Bergen, Marissa Newman, and Ben Bartenstein - Bloomberg
G42, a startup in Abu Dhabi, has made itself into an up-and-coming technology conglomerate over the past six years, with a sprawling product portfolio that extends into large language models, human genomics and spacecraft. While mostly unknown outside of the Middle East, G42 has become intertwined with some of the biggest US technology and artificial intelligence companies, including Amazon.com Inc. and OpenAI Inc. A defining moment for G42 came on April 16, when Microsoft Corp. revealed a $1.5 billion stake in the company. "We choose Microsoft as our key partner," Peng Xiao, G42's chief executive officer, said in an interview with Bloomberg News ahead of the announcement. "We feel very privileged that they felt the same way."
/jlne.ws/3JAWNmG
Meta's License to Spend on AI Gets Checked; Facebook parent's capital expenditures this year will rival outlays from Google and Microsoft, but advertising growth is slowing
Dan Gallagher -The Wall Street Journal
That blank check investors wrote to Mark Zuckerberg seems to top out around $40 billion. That is the new upper end of this year's projected capital expenditures by Meta Platforms. The parent company of Facebook and Instagram raised its capex range for the year by 12% as part of its first-quarter report late Wednesday, with the chief executive citing the need to boost investments in generative artificial intelligence. It is a big number that is nearly double what the company has averaged over the past five years and nearly on par with projected spending this year by Microsoft and Google-parent Alphabet, two much larger companies by annual revenue.
/jlne.ws/4b9xiF0
AI could kill off most call centres, says Tata Consultancy Services head; Chatbots will soon take over much of the work of human agents, forecasts chief of Indian IT group
Benjamin Parkin and Chris Kay - Financial Times
/jlne.ws/44gMwFV
Why Asset Tokenization Is Inevitable
Mehdi Brahimi, Miguel Kudry - CoinDesk
/jlne.ws/4dh5mAX
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| Cybersecurity | | Top stories for cybersecurity | Cybersecurity Firm Rubrik to Raise $752 Million in U.S. IPO; The company priced its IPO at $32.00 a share, higher than its guided range of $28.00 to $31.00, indicating strong investor interest
P.R. Venkat - The Wall Street Journal
Cybersecurity company Rubrik plans to raise $752 million through a U.S. listing, the latest company to tap an initial public offering market that is heating up. The company priced its IPO at $32.00 a share, higher than its guided range of $28.00 to $31.00, indicating strong investor interest in stocks exposed to the technology sector.
/jlne.ws/4aNi0WD
CSOs say AI is 'biggest cyber threat' to their organizations
Features
Olivia Powell - TechRadar
Artificial intelligence is the 'biggest cyber threat' to their organizations, say one in five cyber security officers (CSOs). Not only this, but a further 20% of CSOs admit that employees at their organization have exposed company data by using generative AI.
This research, which was conducted by Censuswide and RiverSafe, exposes the top fears and threats of those in the cybersecurity industry. They're right to have these fears, too.
/jlne.ws/4doyQNk
11% of Cybersecurity Teams Have Zero Women
Beth Maundrill - Infosecurity Magazine
Just 4% of cybersecurity teams have a majority of women on them, with 11% completely lacking any female representation at all, according to new research by ISC2. The overall global average suggests that 23% of teams are comprised of women.
/jlne.ws/4dgLZaX
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| Cryptocurrencies | | Top stories for cryptocurrencies | Chinese woman charged in UK with criminal possession of crypto; Yadi Zhang made initial appearance at Westminster Magistrates Court on Wednesday
Euan Healy and Eri Sugiura - Financial Times
A Chinese woman has been charged in the UK with two counts of criminal possession of cryptocurrency. Yadi Zhang, also known as Zhimin Qian, is accused of acquiring, using or possessing criminal property, namely cryptocurrency, from October 1 2017 until Tuesday this week in London and elsewhere in the UK.
/jlne.ws/4bcbdp6
US SEC expected to deny spot ether ETFs next month, industry sources say
Suzanne McGee and Hannah Lang - Reuters
U.S. issuers and other firms expect the Securities and Exchange Commission to deny their applications to launch exchange-traded funds (ETFs) tied to the price of ether after discouraging meetings with the agency in recent weeks, four people said. VanEck, ARK Investment Management and seven other issuers have filed with the SEC to list ETFs that would track the spot price of the world's second-largest cryptocurrency after bitcoin. The SEC must decide on VanEck's and ARK's filings, which are first in line, by May 23 and May 24 respectively.
/jlne.ws/3Wa8KHF
Crossover's Crypto ECN Executed Over $3 Billion in Q1 2024
Rick Steves - Finance Feeds
"Our growth is also driving continued increases in the percentages of trades that are 'Order Crossing Order' (OXO). Currently, roughly 10% of all trades executed on CROSSx are OXO, another differentiator in our platform's capacity. This capacity and our unique execution model provide value to both the market maker and taker, as evidenced by our commercial model." Crossover Markets's CROSSx has executed 415,450 trades worth a notional trading volume of $3,153,752,406 in Q1 2024, the crypto ECN reported.
/jlne.ws/3xZLaTI
Stablecoin Bill Spells 'Huge Disaster' for Consumers, American's Allen Says
Olga Kharif - Bloomberg
As Congressional stablecoin legislation designed to legitimize and clarify many aspects of the mostly fiat-backed coins moves along, it's drawing cheers from the crypto industry - and criticism from the traditional finance world. The 179-page bill was introduced by Senators Kirsten Gillibrand (D-NY) and Cynthia Lummis (R-WY) last week amid a renewed push to pass such legislation as soon as next month. The bill bans so-called algorithmic stablecoins, which aren't backed by full fiat reserves. It also creates a mechanism for FDIC conservatorship and resolution if an issuer becomes insolvent.
/jlne.ws/3UyeN7C
Kore Digital Mining Ltd Announces Additional 14 PH/s Bitcoin Mining Capacity
Kore Digital Mining Ltd
Kore Digital Mining Ltd, a UK based Bitcoin mining company, announces that effective 1st May 2024, an additional 14 PH/s mining capacity will be added to its existing infrastructure. This additional capacity will be provided by a major Bitcoin mining corporation and will be operational until 30th June 2024.
/jlne.ws/44wiAG5
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| Politics | | An overview of politics as it relates to the financial markets | Biden signs bill that would ban TikTok if ByteDance fails to sell the app
Aisha Malik - TechCrunch
President Biden has signed a bill that would ban TikTok if its Chinese parent company, ByteDance, fails to sell it within a year. The bill, which includes aid for Ukraine and Israel, was passed by the U.S. Senate in a 79-18 vote late Tuesday after the House passed it with overwhelming majority over the weekend. The bill gives ByteDance nine months to divest TikTok, with a 90-day extension available to complete a deal. If ByteDance doesn't sell TikTok, it would become illegal for app stores to distribute the app in the U.S. In an emailed statement to TechCrunch, TikTok said it would challenge the "unconstitutional law" in court.
/jlne.ws/4dgamFZ
COP29 Climate Summit Countdown Starts With Finance at Forefront; Germany says Global South needs $2 trillion per year; COP29 host Azerbaijan says development banks falling short
John Ainger - Bloomberg
Political leaders said this year's COP29 talks will center on a challenge they've failed for years to overcome: massively increasing funds to help poorer countries fight global warming. At the Petersberg Climate Dialogue, Germany's foreign affairs minister Annalena Baerbock said developing nations would need $2 trillion annually, with half of that coming from foreign sources. The event in Berlin this week is an important point in the climate diplomacy calendar leading up to the annual United Nations climate summit, which will take place in Baku in November.
/jlne.ws/4aKNEUC
The US is now allowed to seize Russian state assets. How would that work?
Fatima Hussein - Associated Press
The big U.S. aid package for Ukraine and other allies that President Joe Biden signed Wednesday also allows the administration to seize Russian state assets located in the U.S. and use them for the benefit of Kyiv.m That could mean another $5 billion in assistance for Ukraine, coming from Russian Central Bank holdings that have already been frozen in the United States. The seizures would be carried out under provisions of the REPO Act, short for the Rebuilding Economic Prosperity and Opportunity for Ukrainians Act, that were incorporated into the aid bill.
/jlne.ws/3UyFhWw
Scottish power-sharing deal collapses over scrapped climate targets; First minister Humza Yousaf says SNP will now govern 'on our policy terms' after ending coalition arrangement with the Greens
Simeon Kerr - Financial Times
Scotland's first minister Humza Yousaf has scrapped his party's power-sharing agreement with the Scottish Greens and vowed to continue to govern as a minority government. At a press conference at Bute House, Edinburgh, the Scottish National party leader said the deal with the Greens had "served its purpose" and argued the break would allow the SNP to govern "on our policy terms".
/jlne.ws/44cDN7D
Poland lays claim to a leadership role in Europe as Russia's war threatens stability
Vanessa Gera and Monika Scislowska - Associated Press
Poland's foreign minister on Thursday called on NATO to increase its defense preparedness and said his government wants to be at the center of decision-making in the European Union, seeking to reestablish the country as a reliable international partner as the war in Ukraine rages across the border. Setting out his vision for Poland at the heart of Europe, Radek Sikorski warned that a Russian attack on NATO would end in defeat for Moscow, but NATO must increase its defenses.
/jlne.ws/49U5tj1
Russian Missile Incursions Into NATO Risk Wider War, Poland's President Says; Andrzej Duda calls the flyovers in Polish airspace provocations that put infrastructure and people in danger
Sharon Weinberger and Karolina Jeznach - The Wall Street Journal
Russia has fired several missiles at Ukraine that have crossed into Polish airspace since 2022, a provocative show of force by Moscow that risks igniting a wider war, according to Poland's president. The most recent incident was on March 24, when a Russian cruise missile targeting western Ukraine entered Polish airspace for 39 seconds, according to the Polish armed forces.
/jlne.ws/49Ugbpq
German army prepares plan to ready US troops to fight on Nato's eastern front
James Rothwell - The Telegraph
German army chiefs are drawing up plans on how they would feed thousands of US soldiers and refuel their tanks as they moved towards Nato's eastern front, as part of a secret document outlining Germany's war readiness. In an interview with German newspaper FAZ, Bundeswehr Lt Gen André Bodemann said the army was putting together a new, long-term security plan with an emphasis on civil defence.
/jlne.ws/4aR0XTp
US, Russia set for a showdown at UN over nuclear weapons in space
Michelle Nichols and Joey Roulette - Reuters
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| Regulation & Enforcement | | Stories about regulation and the law. | Crypto Mixer Samourai Wallet's Co-founders Arrested for Money Laundering; Federal prosecutors allege the platform helped launder more than $100 million of proceeds from dark web markets
Mengqi Sun - The Wall Street Journal
U.S. prosecutors on Wednesday targeted another so-called cryptocurrency mixer, accusing the two co-founders of Samourai Wallet of money laundering and of operating an unlicensed money-transmitting business. Keonne Rodriguez, Samourai's chief executive, and William Lonergan Hill, its chief technology officer, were arrested and charged for developing and operating Samourai.
/jlne.ws/3vZY43M
The FTC Comes for Noncompetes; Also restaurant reservation HFT, non-converting convertible bonds, index-fund blacklists and rural Chinese apartments.
Matt Levine - Bloomberg
Is there still gardening leave? Yesterday, the US Federal Trade Commission voted to ban employee noncompete agreements in the US.1 Future noncompetes are banned; existing noncompetes are enforceable only for senior executives.2 The rule goes into effect in six months, and there will definitely be lawsuits to block it. In the final rule document, the FTC notes that "employers subject even middle-income and low-wage workers to noncompetes on a widespread basis," but of course noncompetes are also common for high-income workers in the financial industry. There, noncompetes are not entirely a bad thing for workers. "All I know is power-washing and these business owners all want me to sign a noncompete clause," says a power-washer cited by the FTC. "It's one big circle of wealthy business owners keeping the little man down."
/jlne.ws/3WcU6PI
Federal Reserve Board announces it will extend through May 31, 2024, the public comment period for the application by Capital One Financial Corporation to acquire Discover Financial Services
Board Of Governors Of The Federal Reserve System
The Federal Reserve Board on Wednesday announced it will extend through May 31, 2024, the public comment period for the application by Capital One Financial Corporation of McLean, Virginia, to acquire Discover Financial Services of Riverwoods, Illinois. The comment period is being extended to provide additional time for interested parties to comment on the proposal. The application was filed on March 21, 2024, and comments on the application were originally due by April 26, 2024.
/jlne.ws/4aRaLwQ
SEC Staff Publishes New Registered Fund Statistics Report
SEC
The staff of the Securities and Exchange Commission today published a new report of Registered Fund Statistics, which is based on aggregated data reported by SEC-registered funds on Form N-PORT. The new report, which will be updated on a quarterly basis, is designed to provide the public with a regular and detailed picture of the registered funds industry-with its more than 12,000 funds and more than $26 trillion in total net assets under management. The report provides key industry statistics and shows trends over time, including information and trends related to portfolio holdings, flows and returns, interest rate risk, and other exposures across U.S. mutual funds, exchange-traded funds, closed-end funds, and other registered funds.
/jlne.ws/4d75rHj
New Registered Fund Statistics Report
Chair Gary Gensler - SEC
The Securities and Exchange Commission staff today began publishing a new report, the Registered Fund Statistics report,[1] which aggregates data about the more than $25 trillion registered fund industry. This will give the public a view into the registered fund industry, which includes more than 12,000 mutual funds, exchange-traded funds, and closed-end funds.
Providing such data to the public is one of the more consequential things a government agency does. Such transparency creates a public good.
/jlne.ws/3JAhUpl
Real-Estate Agents, Investment Advisers Chafe at New Anti-Money-Laundering Rules; The U.S. Treasury Department is looking to bring two new industries under regulations intended to stem the flow of illicit money
Dylan Tokar - The Wall Street Journal
Investment advisers and real-estate industry professionals are all for stamping out money laundering, just as long as it is someone else doing the stamping. The Treasury Department earlier this year proposed rules that would bring both industries under regulations designed to prevent the flow of illicit money through the U.S. economy. While supportive of the Treasury's goals, many industry members would like to see the rules written as narrowly as possible and, in some cases, have the responsibility for screening for money laundering shifted to others in their industry.
/jlne.ws/3xJX2Jt
SEC Charges Atlanta-Based Hedge Fund Manager with Multimillion-Dollar Fraud
SEC
The Securities and Exchange Commission today announced charges against Craig Allen for defrauding investors in The Cheetah Fund L.P., an Atlanta-based hedge fund that Allen founded and controlled.
/jlne.ws/4b5q5pX
SEC Charges Crypto Asset Mining and Hosting Company and Its Co-Founders with Fraud
SEC
The Securities and Exchange Commission announced today that it filed charges against Geosyn Mining, LLC, a Texas-based crypto asset mining and hosting company, and its co-founders, Caleb Ward and Jeremy McNutt, for engaging in an unregistered and fraudulent securities offering.
/jlne.ws/4d9Xy3N
Start preparing now: Early ASIC guidance on the mandatory climate disclosure regime
ASIC
More than 6,000 entities will be required to report under new climate-related disclosure requirements in the next few years. They need to start preparing for the future, now.
As I've said before, the growing interest in environmental, social, and governance (ESG) issues is driving the biggest changes to financial reporting and disclosure standards in a generation. This is a transformational issue for global markets, and we need to be ready to meet that change at every step of its development. To do that, we must maintain high standards of governance and disclosure.
/jlne.ws/3Qh37ng
Do Kwon's Huge Fine Shows the SEC Is Ratcheting Up Penalties Against Crypto Firms
Jesse Hamilton - CoinDesk
The U.S. Securities and Exchange Commission is looking to impose its steepest fine yet on a cryptocurrency project, a $5.3 billion penalty for Do Kwon and Terraform Labs, the man and company behind the fatally flawed algorithmic stablecoin that jumpstarted a multi-billion-dollar, industry-wide contagion event when it imploded two years ago.
/jlne.ws/3UvUpnI
No-action position on financial reporting obligations of special purpose financing subsidiaries and their guarantors
ASIC
In response to stakeholder feedback, ASIC has adopted a no-action position on the financial reporting obligations of special purpose financing subsidiaries or other wholly-owned subsidiaries that issue debentures to sophisticated or professional investors, and their guarantors, that may have been relying on relief under ASIC Corporations (Wholly-Owned Companies) Instrument 2016/785 (ASIC Instrument 2016/785).
/jlne.ws/3waxgOk
Case consolidation for first ramp-and-dump criminal prosecution at District Court
SFC
The District Court today granted an application by the Department of Justice to consolidate an existing ramp-and-dump case involving a highly sophisticated syndicate with another case transferred from the Eastern Magistrates' Courts.
/jlne.ws/3UzkktB
SFC and HKEX collaborate in enforcement action against Main Board-listed company over dubious investment and financial arrangements
SFC
The Securities and Futures Commission (SFC) and The Stock Exchange of Hong Kong Limited (Exchange) have joined hands in an enforcement action to secure a disciplinary outcome by the Exchange against China Ecotourism Group Limited (China Ecotourism) and its seven current and former directors (Note 1 to 4). The investigation centred on their misconduct in granting 13 loans of approximately HK$363 million and RMB91 million to nine borrowers, and acquiring a 37.5% interest in a blockchain technology company for HK$35 million.
/jlne.ws/4aNfAY3
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Zuckerberg Asks for Patience as Meta's AI Push Spooks Investors; The shares plunge as much as 19% on disappointing forecast; Meta will spend billions more than previously expected
Kurt Wagner - Bloomberg
Mark Zuckerberg is asking investors for patience again. Instead, they're alarmed. After Meta Platforms Inc. revealed that it will spend billions of dollars more than expected this year - fueled by investments in artificial intelligence - the company's chief executive officer did his best to soothe Wall Street. But the spending forecast, coupled with slower sales growth than anticipated, sent the shares tumbling as much as 15% in premarket trading on Thursday.
/jlne.ws/3UdqpeL
Commodity prices could keep inflation high, warns World Bank; Sharp falls in commodities are unlikely to continue, says lender, making it harder for central banks to cut interest rates
Susannah Savage - Financial Times
Energy and other commodity prices are unlikely to continue to be a major deflationary force in the coming years, according to the World Bank, hampering central banks in their efforts to cut interest rates. The multilateral lender said in a report on Thursday that the sharp decline in commodity prices over the past two years had come to a halt, as geopolitical tensions tighten supplies and demand for industrial metals and those used in the energy transition continues to grow.
/jlne.ws/3WxJM5l
Reluctant Traders Protect Themselves From Further Market Mayhem; Options buying shows demand is mostly for near-term hedging; 'Be cautious and accumulate some protection': Little Harbor Big Tech Stocks Need to Deliver, Says BlackRock's Moore
Carly Wanna - Bloomberg
Stock market investors who have been reluctant to hedge their portfolios in the face of this year's gains are starting to reconsider that strategy. Heightened geopolitical risks are stoking market fear as Middle East tensions intensify, while the realities of the Federal Reserve keeping interest rates higher for longer are starting to settle in, sending the S&P 500 Index down 3.2% for April and putting it on pace for its first monthly loss since October. The mounting uncertainties have traders buying put options that pay off if stocks keep tumbling.
/jlne.ws/3wfvpYj
The NFL Draft Prospect Moonlighting as an Investor; When Florida State defensive tackle Braden Fiske received a windfall in the new collegiate sports economy, he resisted the urge to spend it on cars and clothes. Instead, he put his money in the stock market.
Andrew Beaton - The Wall Street Journal
Braden Fiske was in his sixth year of college football when he suddenly found he had more money than he knew what to do with. The defensive tackle had gone from playing at a small-conference school, Western Michigan, to becoming one of the most coveted players in the sport when he transferred to Florida State last year. That move turned him into precisely the type of player who could capitalize on the new rules that allow college athletes to cash in on their name, image and likeness.
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | COP29 Climate Summit Countdown Starts With Finance at Forefront; Germany says Global South needs $2 trillion per year; COP29 host Azerbaijan says development banks falling short
John Ainger - Bloomberg
Political leaders said this year's COP29 talks will center on a challenge they've failed for years to overcome: massively increasing funds to help poorer countries fight global warming. At the Petersberg Climate Dialogue, Germany's foreign affairs minister Annalena Baerbock said developing nations would need $2 trillion annually, with half of that coming from foreign sources. The event in Berlin this week is an important point in the climate diplomacy calendar leading up to the annual United Nations climate summit, which will take place in Baku in November.
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***** This story from Reuters
Europe's Climate Leaders 2024: interactive listing; Despite chafing at green regulations, companies are making headway on cutting carbon emissions
Neville Hawcock - Financial Times
A hotter planet, scientists say, means harsher weather: storms, floods, droughts, fires. For Europe's businesses and politicians, it also means tougher conditions, as new regulations designed to combat climate change start to bite. Under the EU's Green Deal - which aims to make Europe "the first climate-neutral continent" - companies must contend with more carbon pricing, tougher sustainability targets, and broader reporting requirements. This has prompted warnings about reduced competitiveness from industry groups, as well as outright protests - such this year's demonstrations by farmers, which forced the European Commission to water down several green measures.
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BHP Makes $39 Billion Anglo Approach to Create Mining Giant; All-share deal would create the world's top copper producer; Demand for the metal soaring amid the global energy transition
Thomas Biesheuvel, Dinesh Nair, and Crystal Tse - Bloomberg
BHP Group Ltd. proposed a takeover of Anglo American Plc that valued the smaller miner at £31.1 billion ($38.9 billion), in a deal that would create the world's top copper producer while sparking the industry's biggest shakeup in over a decade. BHP, already the largest miner, proposed an all-share deal in which Anglo would first spin off controlling stakes in South African platinum and iron ore companies to its shareholders before being acquired by BHP. The total per-share value of the non-binding proposal was about £25.08, BHP said.
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Insurers Group Targeted by Anti-ESG Campaign Is Being Replaced; New UN-backed group is called Forum for Insurance Transition; The FIT alliance has focus on net zero insurance metrics
Alastair Marsh - Bloomberg
What was once the world's biggest climate alliance for insurers is now being discontinued, after a wave of attacks by the Republican-led anti-ESG movement. The Net Zero Insurance Alliance will instead be replaced by the Forum for Insurance Transition to Net Zero (FIT), convened and led by the United Nations Environment Programme, according to a statement on Thursday. The decision takes effect immediately, UNEP said.
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EU lawmakers back law to boost domestic clean tech production
Reuters
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | UK Futures Broker Marex Group's IPO Raises $292 Million
Amy Or - Bloomberg
Marex Group Plc and a group of the London-based firm's shareholders raised about $292 million in a US initial public offering priced within a marketed range. The financial services platform and the selling shareholders sold about 15.4 million shares Wednesday for $19 each after marketing them for $18 to $21, according to a statement confirming an earlier report by Bloomberg News.
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Jefferies CEO Sells $65 Million of Shares to Purchase Yacht
Katherine Doherty - Bloomberg
Jefferies Financial Group Inc. Chief Executive Officer Rich Handler sold $65 million of shares in his investment bank partly to buy a present for himself - a yacht. The CEO sold 1.5 million shares of Jefferies stock Wednesday at $43.50 each, according to a statement. It's the first stock sale Handler has made in the 34 years he's been at Jefferies, except for those used for tax purposes and charitable donations, the New York-based firm said. Proceeds from Wednesday's sale are being used to buy a personal boat and pay tax obligations, Jefferies said.
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Barclays Investment Bankers Need to Pick Up the Pace; The UK lender is slower to recover than Deutsche Bank, BNP Paribas and US peers on deals and hitting targets.
Paul J. Davies - Bloomberg
Barclays Plc, BNP Paribas SA and Deutsche Bank Group AG have all made big promises about the growth to come from their investment banks as part of their aims to boost profits for shareholders. It might be unfair to judge progress against a single quarter's fresh results, but of the three Barclays looks most off the pace.
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Investment Banking Lifts Deutsche Bank Earnings
Patricia Kowsmann - The Wall Street Journal
Deutsche Bank said its first-quarter profit rose 10% as its investment-banking business beat expectations. The quarter saw a reversal from 2023, with investment banking doing better than its bread-and-butter lending and deposit-taking business, which gained last year from higher interest rates that are now normalizing.
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Goldman Sachs names new Japan chief after abrupt exit of former president; Promotion of Hong Kong based insider Hidehiro Imatsu follows months-long leadership vacuum
Leo Lewis - Financial Times
Goldman Sachs has named Hidehiro Imatsu as the new president of its Japan operations, after a five-month effort to fill one of the most powerful positions in Tokyo's financial industry. The appointment of Imatsu, a Goldman Sachs veteran currently based in Hong Kong, follows the abrupt departure in November of Masanori Mochida, the near 70-year old banker who had led the group for more than 20 years.
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Barclays chief calls for return of UK equity risk culture; British bank reports 13% decline in quarterly profits but still beats analysts' expectations
Ortenca Aliaj and Owen Walker - Financial Times
Barclays chief executive CS Venkatakrishnan called for a renewal of equity risk culture in the UK to stimulate markets, as the bank reported better than expected first-quarter earnings. Profits fell 13 per cent from the same period a year earlier to £1.6bn, after weakness in the bank's domestic business and its investment bank drove a 4 per cent decline in group revenues to £7bn.
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Trading helps lift Deutsche Bank to highest quarterly profit in 11 years; First-quarter net income increased 10% from a year earlier to EUR1.45bn
Olaf Storbeck - Financial Times
Trading and investment banking helped lift Deutsche Bank to its highest quarterly profits in 11 years in the first three months of 2024, as global dealmaking started to pick up after a two-year long slump. Germany's largest lender said on Thursday that first-quarter net income increased 10 per cent from a year earlier to EUR1.45bn, slightly above analysts' expectations. The profits increase reflected a similar trend at its larger Wall Street rivals.
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US Fund Managers With ESG Mandates Have Worst-Ever Outflows; US ESG funds had $8.8 billion of withdrawals in first quarter; Global inflows were a modest $900 million, buoyed by Europe
Frances Schwartzkopff - Bloomberg
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BlackRock-backed Decarbonization Partners raises $1.4 billion for first fund
Simon Jessop - Reuters
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Quant hedge funds enjoy bumper start to 2024; Trend-followers profit from bets on rocketing cocoa price and against sinking yen
Costas Mourselas - Financial Times
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | US White-Collar Job Growth Stalls, Even in Pandemic Boomtowns; Hiring in professional services, finance and technology is running at one-third the rate of the overall labor market.
Augusta Saraiva, Skylar Woodhouse, and Paulina Cachero - Bloomberg
A laid-off YouTube employee is down to his last paycheck. A former startup worker has to borrow money from his family to pay his mortgage. A veteran financial consultant can barely land an interview. They're all victims of a stall out in white-collar hiring across much of the US. Industries such as finance, technology and media, and professional services like law and accounting, have turned into a pocket of weakness in a still-robust labor market, with the national unemployment rate hovering near historic lows.
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Europeans 'less hard-working' than Americans, says Norway oil fund boss; Tangen finds US investments more attractive due to weaker regulations and more risk-taking
Richard Milne and Robin Wigglesworth - Financial Times
Europe is less hard-working, less ambitious, more regulated and more risk-averse than the US, according to the boss of Norway's giant oil fund, with the gap between the two continents only getting wider. Nicolai Tangen, chief executive of the $1.6tn fund, told the Financial Times it was "worrisome" that American companies were outpacing their European rivals on innovation and technology, leading to vast outperformance of US shares in the past decade.
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| Wellness Exchange | | An Exchange of Health and Wellness Information | It's not only AI that hallucinates; Human memory is also fallible but people and machines can learn to complement each other
John Thornhill - Financial Times
It may be rash to extrapolate from a sample size of one (me). But I confess that my memory is not perfect: I forget some things, confuse others and occasionally "remember" events that never happened. I suspect some FT readers may be similarly muddle-headed. A smart machine might call this human hallucination.
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This May Be Our Last Chance to Halt Bird Flu in Humans and We Are Blowing It
Zeynep Tufekci - The New York Times
The outbreak of H5N1 avian influenza among U.S. dairy cows, first reported on March 25, has now spread to at least 33 herds in eight states. On Wednesday, genetic evidence of the virus turned up in commercially available milk. Federal authorities say the milk supply is safe, but this latest development raises troubling questions about how widespread the outbreak really is.
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Hong Kong Crypto ETF Launches Will Test Ambition to Be Digital-Asset Hub; Asset managers are due to list spot-Bitcoin and Ether funds; City has a tough act to follow after the success of US ETFs
Suvashree Ghosh and Sarah Zheng - Bloomberg
Hong Kong is set to follow in the footsteps of the US by listing a batch of cryptocurrency exchange-traded funds, providing a window on whether the city is making progress on fashioning a hub for digital assets. Some of China's top asset managers are in the final leg of preparations for the spot-Bitcoin and Ether ETFs to begin trading by the end of April. The launches will likely invite comparison with a slew of three-month-old US Bitcoin funds that took Wall Street by storm, garnering $56 billion in assets to date.
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'Europe could die': Macron urges stronger defences, economic reforms
Michel Rose and Ingrid Melander - Reuters
French President Emmanuel Macron called on Thursday for stronger, more integrated European defences as he outlined his vision for a more assertive European Union on the global stage. In a speech at the Sorbonne University in Paris, he also said the continent must not become a vassal of the United States.
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Is There Light at the End of the Tunnel for Hong Kong? The city's equity market jumped this week, registering its best performance this year, in the wake of proposed regulatory changes
Jacky Wong - The Wall Street Journal
Hong Kong's stock market used to be the world's top equity fundraising venue. Not anymore: In the number one spot as recently as 2019, it didn't even break the top five in 2023 according to Dealogic. But the market is up 6% this week, its best performance this year, in the wake of proposed regulatory changes. In particular, comments from China's security regulator suggesting that more big Chinese companies may be greenlighted to list in Hong Kong.
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