| July 03, 2024 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
On July 11, 2024, the 10th Annual NIBA/DePaul University Summer Symposium, titled "AI Evolution," will take place in Chicago, IL, from 1:45 to 5:00 pm CDT, followed by a reception from 5:00 to 6:30 pm CDT. Sponsored by Michael Coglianese, CPA, Greenberg Traurig Law, and Equity Trust, the event will focus on AI's impact on the derivatives industry. The symposium will feature three business sessions for Introducing Brokers (IBs) and Commodity Trading Advisors (CTAs): AI + Regulation, AI + Communication, and AI + Applications. Attendance is free, but registration is required.
Registration is now open for the STA's 91st Annual Market Structure Conference: Shifting the Landscape, taking place at the JW Marriott Grande Lakes in Orlando, FL. Join STA for three days of engaging content and activities, including golf and a poolside networking event. Attendees can register for the conference, sign up for the STA Women in Finance Symposium, reserve rooms at the JW Marriott, and book a foursome at the Ritz-Carlton Golf Club. Click HERE to register and make arrangements.
Bloomberg is reporting that Citadel is acquiring Tokyo-based Energy Grid Corp., a power trading company founded in 2021 by a former Goldman Sachs trader. The acquisition, closing in the third quarter, supports Citadel's expansion into Japan's liberalized power market. Increased volatility from extreme weather, a shift from fossil fuels, and nuclear reactor restarts have attracted foreign firms to Japan. Energy Grid provides risk management products to help Japanese companies hedge against electricity pricing volatility. Pricing details of the deal were not disclosed.
The Wall Street Journal reported "Rudy Giuliani Disbarred by New York Supreme Court." The Journal said, "The court cited the former New York mayor's false and perjurious statements related to the 2020 election." The Journal had also reported on July 1 that Guiliani had requested that his personal bankruptcy case be converted from Chapter 11 to Chapter 7, so that his assets could be liquidated to repay creditors, "including the two Georgia election workers he was found to have defamed during the aftermath of the 2020 presidential election."
Today we have a John Lothian Profiles video we shot a couple months back of Alan Knuckman, a trader and market analyst who is a big supporter of the use of options to trade, but in his unique way. Alan is a longtime futures and options broker who spent some time working for Opportunity in Options in California and was part of the Ken Roberts marketing phenomena that brought thousands of new traders to the markets.
We also have a commentary I wrote about a call I received two days ago from David Downey, who tried to call me when I was over in London, about the newly approved DCM and DCO ForecastEx, LLC. The commentary is titled David Downey's Important Call: ForecastEx to Revolutionize Event Contracts with CFTC Green Light.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
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Our most read stories from our previous edition of JLN Options were:
- The Impact of T+1 on Options from the OIC.
- OCC June Monthly Volume Data from the OCC.
- Hedge fund giants Citadel and Millennium post strong first-half gains from the Financial Times. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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David Downey's Important Call: ForecastEx to Revolutionize Event Contracts with CFTC Green Light
JohnLothianNews.com
David Downey does not call me very often, but when he does, it is important. He called me on June 25. Unfortunately, I was in London and missed the call.
There is also this strange thing that happens when someone calls me from the Cboe and their caller-ID has the general Cboe number on it, the same one I still have in my phone for the work phone for Downey from his days at OneChicago. Downey appears to be calling me. Thus, sometimes when I get a call from a Cboe PR person, it comes up on my phone as Downey.
Read more »
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Alan Knuckman Reflects on His Journey from Michigan to Chicago's Trading Floors
JohnLothianNews.com
In a recent interview for the John Lothian Profiles video series, veteran trader Alan Knuckman recounted his path from a small mining town near Lake Superior to the bustling trading floors of Chicago. Knuckman's story is one of perseverance, adaptability, and a deep understanding of market psychology, shaped by his early life experiences and career transitions.
Watch the video »
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BONUS: Algorithmic Adventures - A Quantitative look: Futures Discovery EP 11
JohnLothianNews.com
Hi, and welcome to the quantitative section of order book matching algorithms. Here we'll look at a more in-depth look at how these strategies are implemented in the market in real time. Let's first start off by looking at FIFO and pro rata. Some of the common strategies we looked at over this episode of order book matching algorithms.
Watch the video »
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Lender looks to unload distressed JW Marriott Chicago
Danny Ecker - Crain's Chicago Business
The lender that foreclosed on the JW Marriott Chicago almost two years ago has put it up for sale, hoping an improving local hospitality market and one of Chicago's busiest summers ever for tourism will help break a sluggish stretch for hotel deals. Miami-based Rialto Capital has hired real estate services firm Jones Lang LaSalle to sell the 610-room hotel at 151 W. Adams St., according to a marketing flyer. Rialto is a special servicer representing bondholders in a $203.5 million loan that seized the property through a foreclosure sale in September 2022.
/jlne.ws/4btvdDi
***** The JW Marriott around the corner from the CBOT Building is under pressure, like many buildings in the LaSalle Street corridor.~JJL
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My Top Lessons for Career Success
David Howson - Cboe Global Markets via LinkedIn
As a new group of graduates enters the workforce and our summer internship program at Cboe begins, I find myself reflecting on my first few years at work and the lessons I learned that have made the biggest impact on my career to date. When I headed to university, I knew from the start I needed to work hard to make my way in the world. Throughout my career, one thing has become increasingly clear: there is no substitute for hard work. Not only is there no substitute, but there is also nothing quite as rewarding as achieving a goal knowing that you gave it your best effort.
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****** David Howson is someone I listen to as he has had remarkable career success and may be the next CEO of the Cboe.~JJL
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YouTube now lets you request removal of AI-generated content that simulates your face or voice
Sarah Perez - TechCrunch
Meta is not the only company grappling with the rise in AI-generated content and how it affects its platform. YouTube also quietly rolled out a policy change in June that will allow people to request the takedown of AI-generated or other synthetic content that simulates their face or voice. The change allows people to request the removal of this type of AI content under YouTube's privacy request process. It's an expansion on its previously announced approach to responsible AI agenda first introduced in November.
/jlne.ws/4cFMU3y
******That Samuel Jackson voice you use is gone. As he would say, "#$%^&U*IOP{"~JJL
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Tuesday's Top Three
Our top story Tuesday was John Lothian Reflects on Physical Challenges and Biden's Debate Performance, from JLN. Second was COVID Is Surging Right Now-This Is the #1 Symptom to Look Out For, According to Infectious Disease Experts, from Parade. And third was Current Epidemic Growth Status (Based on Rt) for States and Territories, a study of Covid-19 growth in the U.S. from the CDC's Center for Forecasting and Outbreak Analytics.
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| Lead Stories | Climate change is pushing up food prices - and worrying central banks; Shifting weather patterns are reducing crop yields and squeezing supplies, creating what could become a permanent source of inflation
Susannah Savage - Financial Times
Sixty years ago, when Giuseppe Divita's grandparents opened their olive mill in Chiaramonte Gulfi, Sicily, the Italian island's climate was ideal for producing the fruit. This is no longer the case, says Divita, who, alongside his brother, runs Oleificio Guccione, which today has its own groves as well as the mill. With average annual temperatures climbing and rainfall dwindling, growing olives and turning them into oil is becoming increasingly difficult.
/jlne.ws/4cLhV6f
Pro-democracy business group calls for new Democratic nominee
Financial Times
Business leaders and donors who belong to Leadership Now, a non-profit dedicated to renewing US democracy, have urged Joe Biden to pass this year's presidential nomination to "the next generation of highly capable Democrats" to avoid the threat of a second Donald Trump term in office. Eighty per cent of Leadership Now members now want a new Democratic nominee, the group's chief executive Daniella Ballou-Aares told the Financial Times. "I know many are considering not writing additional cheques."
/jlne.ws/4eRHXqj
The Supreme Court has undermined US democracy; Expanding presidential immunity increases the risks from a second Trump term
The editorial board - Financial Times
Just a few weeks ago, a Manhattan jury found former president Donald Trump guilty of 34 felony counts. Its decision affirmed an idea that is the bedrock of American democracy: no one, not even a former president, is above the law. Monday's Supreme Court decision in Trump vs United States seems to undercut that principle. In a 6-3 decision regarding Trump's claims of immunity over allegations that he sought to overturn the 2020 election result, the court radically expanded the notion of presidential immunity. It argued that a president may not be criminally prosecuted for exercising "core constitutional" duties, such as commanding the military, and has "presumptive immunity" for "official" acts.
/jlne.ws/3RSBEJb
Europe's Electricity 'Flash Chaos' Highlights Market Weakness; A computer failure led to power prices spiking by 3,000% in Germany. Regulators need to pay more attention.
Javier Blas - Bloomberg
Uwe Reinecke couldn't believe his eyes. The German industrialist, who runs a steel plant near Dresden, saw the cost of electricity surge to the highest he'd ever witnessed. Just after sunrise on June 25, the cost of power in the wholesale market climbed 3,000% above typical levels - higher than anything seen even during the worst of the 2021-2022 European energy crisis. Reinecke, who has decades of experience, took an unprecedented decision: He shut down his factory.
/jlne.ws/3XO8Buk
China's Investment Bankers Join the Communist Party as Morale (and Paychecks) Shrink; Once a symbol of Beijing's ambitions in finance, CICC is fighting for its future.
Cathy Chan - Bloomberg
It's today's hot credential at China's premier investment bank: membership to the Chinese Communist Party. One after another, bankers at China International Capital Corp. are pledging their loyalty to the party. Hundreds are promising to follow the CCP's directives, guard its secrets and, per the official oath, "sacrifice my all for the party and the people."
/jlne.ws/4cJq7UG
Carbon Offsets Developer Reports Ex-CEO to Feds Over Bad Credits; C-Quest said Kenneth Newcombe engaged in wrongdoing that resulted in millions of carbon credits that didn't deliver on their promised climate impact.
Natasha White - Bloomberg
Carbon offsets developer C-Quest Capital LLC said it reported former Chief Executive Officer Kenneth Newcombe to US federal law enforcement for his role in allegedly issuing millions of environmentally worthless carbon credits. Newcombe, who stepped down in February, "committed wrongdoing" that led to the over-issuance of millions of carbon credits from clean cooking projects, the company said in a June 26 statement. C-Quest's new leadership team reported the issue to US regulators and Verra, the world's leading carbon credits registry through which the credits were issued.
/jlne.ws/4coc6fp
Robinhood Said to Consider Offering Crypto Futures in US, Europe
Olga Kharif and Paige Smith - Bloomberg
Robinhood Markets Inc. is considering offering cryptocurrency futures in the US and Europe in the coming months, according to people familiar with the commission-free investing and trading platform's plan. Once its $200 million acquisition of Bitstamp Ltd. closes next year, Robinhood is hoping to use the crypto exchange's licenses to offer perpetual futures for Bitcoin and other tokens in Europe, according to the people, who asked for anonymity because the plans haven't been made public. It also wants to launch CME-based futures in the US for Bitcoin and Ether, the people said.
/jlne.ws/3VNv2x4
Hedge Fund's Secret Adani Short Revealed in Blow-by-Blow Account
Bhuma Shrivastava and Bei Hu - Bloomberg
An activist short-seller, a New York hedge fund, a Mauritius-based investment vehicle and a broker tied to a big Indian bank: All played a role in one of the most-damaging short-seller attacks anywhere in the world. A fresh war of words between the short seller - Hindenburg Research - and India's markets regulator has thrown up an intriguing cast of characters behind the scathing report and related bets against the Adani Group that wiped out as much as $153 billion in market value last year.
/jlne.ws/3VIZtV4
Google's greenhouse gas emissions jump 48% in five years; Google's 2030 "Net zero" target looks increasingly doubtful as AI use soars.
Camilla Hodgson and Stephen Morris - Financial Times Via Ars Technica
Google's greenhouse gas emissions have surged 48 percent in the past five years due to the expansion of its data centers that underpin artificial intelligence systems, leaving its commitment to get to "net zero" by 2030 in doubt. The Silicon Valley company's pollution amounted to 14.3 million tonnes of carbon equivalent in 2023, a 48 percent increase from its 2019 baseline and a 13 percent rise since last year, Google said in its annual environmental report on Tuesday.
/jlne.ws/3xIzg0P
Euronext regulation expert joins ABN AMRO Clearing Bank as regulatory manager; New appointment previously held positions at Euronext, the UK's Financial Conduct Authority, Bank of America Merrill Lynch, Royal Bank of Scotland, and CME Group.
Wesley Bray - The Trade
ABN AMRO Clearing Bank has appointed Samantha Page as regulatory manager following almost two years at Euronext. Most recently, Page served as head of market structure, with a focus on EU and UK policy and advocacy, as well as sales and product development. Prior to joining Euronext, Page spent nearly seven and a half years at the Financial Conduct Authority (FCA), serving in a wholesale banking supervision and authorisations role.
/jlne.ws/4eHAJW5
Crypto Hedge Fund Operator Owes $84 Million in CFTC Fraud Case; CFTC brought lawsuit in 2022 after collapse of fund; Judge granted CFTC judgment, ordered restitution
Matthew Bultman - Bloomberg
A federal court ordered Jafia LLC and its owner to pay almost $84 million to crypto investors after finding they ran a Ponzi-like crypto fraud. Sam Ikkurty, of Portland, Ore., made various misrepresentations about crypto hedge funds run by his firm Jafia, including statements about his experience trading crypto, Judge Mary Rowland in the US District Court for the Northern District of Illinois said in a ruling Monday.
/jlne.ws/4co1PzH
Market forces are not enough to halt climate change; Investor returns imply that the welfare of future human beings is close to irrelevant
Martin Wolf - Financial Times (opinion)
At the heart of attempts to halt damaging climate change is a pair of ideas: decarbonise electricity and electrify the economy. So, how is it going? Badly, is the answer. Will things change soon enough? Not on today's trajectory. Worse, the politics, always difficult, have become even more so: people just do not want to pay the price of decarbonising the economy.
/jlne.ws/3VO3Oq0
Hurricane Beryl becomes earliest category five storm on record; Record sea temperatures threaten catastrophic destruction across Caribbean
Attracta Mooney - Financial Times
Hurricane Beryl became the earliest hurricane on record to develop into a category five storm, meaning its winds and sea surges could prove catastrophic, as warming oceans fuelled destruction across the south-eastern Caribbean. Forecasters said it was expected to bring "life-threatening" winds and storm surges to Jamaica on Wednesday before hitting the Cayman Islands. Beryl made landfall on Monday on Carriacou, an island that is part of Grenada, as well as hitting St Vincent and the Grenadines, leaving several dead and causing widespread damage.
/jlne.ws/4cIlnP9
Moody's Forms Strategic Alliance to Boost ESG Solutions
Benzinga via Markets Insider
Moody's Corp. (NYSE:MCO) and MSCI Inc. (NYSE:MSCI) have entered into an agreement to establish a strategic partnership to capitalize on each other's strengths to enhance transparency in environmental, social, and governance (ESG) and sustainability in markets and make better decisions. The financial terms of the deal remain confidential. Moody's will utilize MSCI's sustainability data and models, which are widely used by the world's major asset managers and asset owners. The agreement includes MSCI's industry-leading ESG ratings and content, which assesses a company's management of financially significant ESG risks and opportunities.
/jlne.ws/4bsYMVM
In "Seismic Shift," Supreme Court Strips SEC of Ability To Seek Civil Penalties for Securities Fraud in Administrative Proceedings
Veronica E. Callahan, John P. Elwood, Daniel M. Hawke, Arthur Luk, Aaron F. Miner, Jane Norberg, Kathleen Reilly, Christian D. H. Schultz, Stephanna F. Szotkowski - Arnold & Porter
In a term packed with landmark rulings, the U.S. Supreme Court held that the Seventh Amendment to the U.S. Constitution entitles a defendant to a jury trial when the U.S. Securities and Exchange Commission (the SEC or the Commission) charges securities fraud and seeks civil penalties pursuant to Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, or Section 206 of the Investment Advisers Act of 1940. See Securities & Exchange Commission v. Jarkesy, No. 22-859, 603 U.S. _____, slip op. (2024). As a result, these claims cannot be brought in an SEC administrative proceeding, but rather must be brought in a federal court.
/jlne.ws/4cObHm3
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Zelenskiy Challenges Trump to Reveal Plans for Ending War; If Trump has plan, 'he should tell us today,' Zelenskiy says; Ukrainian leader offers to meet Trump in Bloomberg interview
Annmarie Hordern and Daryna Krasnolutska - Bloomberg
Ukrainian President Volodymyr Zelenskiy said Donald Trump should come forward with his plan to quickly end the war with Russia, warning that any proposal must avoid violating the nation's sovereignty. "If Trump knows how to finish this war, he should tell us today," Zelenskiy said in a Bloomberg Television interview in Kyiv on Wednesday. "If there are risks to Ukrainian independence, if we lose statehood - we want to be ready for this, we want to know."
/jlne.ws/3L9c4vP
Zelenskiy Says Ukraine Discussing Transit of Azeri Gas to EU
Daryna Krasnolutska - Bloomberg
Ukraine is in talks to send natural gas from Azerbaijan to the European Union as it seeks to maintain its role as a transit country and help western neighbors ensure energy security, President Volodymyr Zelenskiy said. A deal to replace Russian gas with Azeri supplies is "one of the proposals" currently being discussed, Zelenskiy said in an interview with Bloomberg Television in Kyiv Wednesday. "It's the cabinet officials who are dealing with this now."
/jlne.ws/4bwAcU3
China Can End Russia's War in Ukraine With One Phone Call, Finland Says
Kati Pohjanpalo and Leo Laikola - Bloomberg
Russia's reliance on China has gotten to the point where Beijing could end the war in Ukraine if it chose to, Finnish President Alexander Stubb said. "Russia is so dependent on China right now," Stubb, 56, said in an interview in Helsinki Tuesday. "One phone call from President Xi Jinping would solve this crisis."
/jlne.ws/4cKPxRY
US Allies Allege China Is Developing Attack Drones for Russia; Drones modeled on Iran's Shahed could constitute lethal aid; Ukraine allies worry about China's ability to boost production
Alberto Nardelli, Jennifer Jacobs, and Alex Wickham - Bloomberg
Chinese and Russian companies are developing an attack drone similar to an Iranian model deployed in Ukraine, European officials familiar with the matter said, a sign that Beijing may be edging closer to providing the sort of lethal aid that western officials have warned against. The companies held talks in 2023 about collaborating to replicate Iran's Shahed drone, and started developing and testing a version this year in preparation for shipment to Russia, said the officials, who asked not to be identified to discuss private information. The Chinese drones have yet to be used in Ukraine, they said.
/jlne.ws/4cLlF7N
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Top U.S. Official to Hold Talks in Paris on Defusing Israel-Hezbollah Conflict
The New York Times
Amos Hochstein, a top White House official, has become President Biden's de facto envoy in the quest to resolve the border conflict. A senior White House official plans to meet with French officials in Paris on Wednesday to discuss ways to defuse the escalating border fire between Israel and Hezbollah militants in Lebanon, a conflict that Secretary of State Antony J. Blinken said this week had caused Israel to lose sovereignty in its north. The trip by the official, Amos Hochstein, the special presidential coordinator for global energy and infrastructure, was confirmed by a person close to the talks, who spoke on the condition on anonymity to discuss sensitive diplomacy.
/jlne.ws/3LcM7M1
Container futures trading trend suggests no end to Red Sea crisis this year
Martina Li - The LoadStar
Trading of China's Asia-North Europe container shipping futures saw double-digit gains for early 2025 freight levels, indicating that shippers believe the Houthis will continue to terrorise shipping in the Red Sea into next year. Yesterday, from a week ago, the EC2502 (February 2025) and EC2504 (April 2025) contracts gained 17%, to $3,711 per teu, and 27%, to $3,097/teu, respectively. Around 8,000 to 15,000 contracts are bought and sold daily.
/jlne.ws/3W6reYW
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | LME to Suspend Deliveries of Nickel From Norilsk Finland Plant; LME will accept no deliveries of Harjavalta nickel from Oct. 3; Production from Harjavalta hadn't been affected by sanctions
Jack Farchy - Bloomberg
The London Metal Exchange is suspending deliveries of nickel from a plant in Finland owned by Russia's MMC Norilsk Nickel PJSC, whose products have continued to be deliverable despite western sanctions on Russian metal. No new deliveries of nickel cathodes and briquettes from Norilsk's Harjavalta plant will be allowed from Oct. 3, the LME said in two separate notices Wednesday.
/jlne.ws/4cpjbfv
Nodal Exchange achieves record growth in power, environmental and natural gas markets in the first half of 2024
Nodal Exchange
Nodal Exchange today announced strong performance in power, environmental, and natural gas futures as of the end of June 2024. Nodal achieved record half year power volume for the first half of 2024 with 1.64 billion MWh traded, up 6% from 1.54 billion MWh traded in the first half of 2023. Nodal Exchange is the leading power futures exchange in North America with the majority of U.S. power futures open interest. Nodal's 1.377 billion MWh of open interest as of end of June 2024 represents $128 billion of notional value based on both sides. U.S. power futures open interest on Nodal Exchange grew 8% year over year as of the end of June. Nodal also posted strong growth in volumes and open interest in the environmental market suite in the first half of 2024. Total volume for Nodal environmental products in the first half of 2024 was 271,884 lots, up 65% from 164,638 lots a year earlier. Total open interest in Nodal environmental products ended June 2024 with 351,659 lots, up 30% from a year earlier.
/jlne.ws/4chSaL7
LSEG and Dow Jones Announce a Multi-year Data, News and Analytics Partnership
London Stock Exchange Group
LSEG's flagship digital platform experience, Workspace, enhanced with integrated news and commentary from Dow Jones's leading news brands. LSEG Workspace will also be deployed across Dow Jones newsrooms. LSEG's Deals Intelligence and League Tables to enrich The Wall Street Journal's coverage of global deal-making. Dow Jones to embed LSEG's world-class data and analytics capabilities across digital and print properties including The Wall Street Journal, Barron's, Investor's Business Daily and MarketWatch. Co-development of an enhanced news experience within LSEG Workspace curated to showcase the top news from across Dow Jones brands. LSEG (London Stock Exchange Group) and Dow Jones today announced a new, multi-year data, news, and analytics partnership.
/jlne.ws/4ctDU1W
Farmer sentiment drifts lower on weaker future expectations
CME Group
Farmer sentiment drifted downward in June as the Purdue University/CME Group Ag Economy Barometer reading of 105 was 3 points lower than a month earlier. The overall decline in sentiment was due to a five-point drop in the Index of Future Expectations, which fell to 112, while the June Current Conditions Index increased to 90, 1 point higher than the May index. High input costs, the risk of lower prices for their products, and rising interest rates continue to weigh on farmer sentiment. This month's Ag Economy Barometer survey was conducted from June 17-21.
/jlne.ws/4brtOgF
Intercontinental Exchange Reports June and Second Quarter 2024 Statistics
Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, today reported June 2024 trading volume and related revenue statistics, which can be viewed on the company's investor relations website at https://ir.theice.com/ir-resources/supplemental-information in the Monthly Statistics Tracking spreadsheet. "Our focus in creating a truly global platform over the last 20 years means that trading the ICE network today is not tied to any single product or limited to any one region. Instead, we have built diversified commodity and financial markets to provide risk management solutions and capital efficiencies across a range of liquid benchmarks," said Benjamin Jackson, President at ICE. "The record traded volume across total futures and options contracts in the second quarter of 2024, surpassing the previous quarterly record in 2020, is a testament to our customers' continued confidence in ICE as a global energy hedging venue of choice."
/jlne.ws/3L8zXn9
Cboe Global Markets Announces Date of Second-Quarter 2024 Earnings Release and Conference Call
Cboe Global Markets
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, will announce its financial results for the second quarter of 2024 before the market opens on Friday, August 2, 2024. A conference call with remarks by the company's senior management will begin at 7:30 a.m. CT (8:30 a.m. ET).
/jlne.ws/4csX3B6
New ETF Options Classes
Bourse de Montreal
Bourse de Montreal Inc. (the Bourse) and Canadian Derivatives Clearing Corporation
(CDCC) hereby inform you that at the opening of trading on Wednesday July 3, 2024, the following new ETF option classes will be listed.
/jlne.ws/4ePuJdS
TMX Group Limited announces release date for Q2 2024 financial results and analyst conference call
TMX Group
TMX Group Limited will announce its financial results for the second quarter ended June 30, 2024 in the evening of Wednesday, July 31, 2024. An analyst conference call to review the results will be held on Thursday, August 1, 2024 at 8:00 a.m. ET.
/jlne.ws/3Wbx0sE
SIP Failover to Secondary Data Center and MWCB Quarterly Testing - July 20, 2024C
Intercontinental Exchange
The Securities Information Processors (SIPs) will conduct industry testing of Market-Wide Circuit Breaker (MWCB) Levels 1, 2, on Saturday, July 20, 2024, between 8:30 a.m. - 12:00 p.m. ET (see SIAC and UTP notices). NYSE, NYSE American Equities, NYSE Arca Equities, NYSE Chicago, and NYSE National will participate in the test from their primary data sites in Mahwah. Firms are encouraged to test their ability to receive all messages associated with Market-Wide Circuit Breakers, including decline status, halt, and resume messages. Firms will also be able to participate in reopening auctions following the MWCB halts.
/jlne.ws/3zoQxg5
Moscow Exchange received the highest credit rating from Expert RA
MOEX
The rating agency Expert RA assigned the highest credit rating ruAAA with a stable outlook to Moscow Exchange PJSC. The rating is based on the confident market positions of the Moscow Exchange, a strong position in capital and profitability, high asset quality, an adequate liquidity position, as well as high assessments of the level of organization of corporate governance and business processes.
/jlne.ws/4cGYonq
In the first half of the year, private investors invested more than half a trillion rubles in securities on the Moscow Exchange
MOEX
The number of individuals with brokerage accounts on the Moscow Exchange ( MOEX ) reached 32.4 million as of June 2024 (+446 thousand people in June, +2.7 million in the first half of the year). Individuals opened 57.7 million accounts (+942 thousand accounts in June). In total, private investors opened 5.4 million accounts in the first half of 2024. In the first half of the year, private investors invested more than half a trillion rubles in securities on the Moscow Exchange. Of these, investments in June amounted to 78.3 billion rubles, including 4.1 billion rubles in shares, 52.1 billion rubles in bonds, and 22.1 billion rubles in exchange-traded funds.
/jlne.ws/3L7Z1uu
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Waters Wrap: CME, Google and the pursuit of ultra-low-latency trading in the cloud; CME Group and Google have announced Aurora, Illinois, as the location for the exchange's new co-location facility. Anthony explains why this is more than just the next phase of the two companies' originally announced project.
Anthony Malakian - Waters Technology
In November 2021, news broke that Google had invested $1 billion into CME Group and the two companies signed a 10-year partnership agreement. At the time, we wrote that this was likely to be the first of many such pairings between major exchanges and the Big Tech cloud providers. Sure enough, soon thereafter, Nasdaq announced a similar deal with Amazon Web Services, LSEG teamed up with Microsoft Azure, and, like CME, Deutsche Bourse landed on Google.
/jlne.ws/3W65wEr
Wirecard's former CFO claims limited dealings with business after 2017; Burkhard Ley says he had only a minor role after he retired, in his first public remarks since the group collapsed 4 years ago
Dan McCrum - Financial Times
Wirecard's former chief financial officer Burkhard Ley has denied remaining a part of the German payment group's inner circle after he retired in 2017, in his first public remarks since the business collapsed four years ago. Appearing at London's high court as a witness in a civil case brought by Wirecard's insolvency administrator, Ley was cross-examined for two days about his credibility, his responsibilities, his memory of events and apparent contradictions in his evidence.
/jlne.ws/3VSarI5
Citadel's Ken Griffin says he's not convinced that AI will replace human jobs in the near future
Yun Li - CNBC
Ken Griffin, founder and CEO of Citadel, said he remains skeptical that artificial intelligence could soon make human jobs obsolete as he sees flaws in machine learning models applied in certain scenarios. "We are at what is widely viewed as a real inflection point in the evolution of technology, with the rise of large language models. Some are convinced that within three years almost everything we do as humans will be done in one form or another by LLMs and other AI tools," Griffin said Friday during an event for Citadel's new class of interns in New York. "For a number of reasons, I am not convinced that these models will achieve that type of breakthrough in the near future."
/jlne.ws/3VLLmhP
Can AI outperform a wealth manager at picking investments? Platforms such as ChatGPT can do comprehensive research for low cost but strategies may be found wanting without critical human expert oversight
Nicholas Fearn - Financial Times
When technology entrepreneur Edward Morris participated in the $5bn initial public offering of chip designer Arm last September, he adopted an entirely artificial intelligence-based strategy that would result in one of his most profitable investments to date. Morris - who runs the consultancy Enigmatica, specialising in AI and prompt engineering (the creation of chatbot inputs that return the most desirable answers) - says he conducted all the necessary due diligence on his investment using the popular AI-powered virtual assistant ChatGPT and made a 30 per cent return. He typically closes out at 10 per cent. In the past, Morris might have asked a human financial adviser to help with his investment activities. But, he considers these services "incredibly expensive" and, seeing first-hand the advancement of AI over the past few years, he was keen to try a new approach. He has no regrets.
/jlne.ws/3L7NGLd
Google emissions jump nearly 50% over five years as AI use surges; Tech giant's ambition of reaching 'net zero' by 2030 under threat from power demands of artificial intelligence systems
Camilla Hodgson and Stephen Morris - Financial Times
Google's greenhouse gas emissions have surged 48 per cent in the past five years due to the expansion of its data centres that underpin artificial intelligence systems, leaving its commitment to get to "net zero" by 2030 in doubt. The Silicon Valley company's pollution amounted to 14.3mn tonnes of carbon equivalent in 2023, a 48 per cent increase from its 2019 baseline and a 13 per cent rise since last year, Google said in its annual environmental report on Tuesday.
/jlne.ws/4cpp1NX
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| Cybersecurity | | Top stories for cybersecurity | The Future Of The Cybersecurity Profession With The Rise Of AI
Chris Dimitriadis - Forbes
From healthcare to manufacturing to agriculture and beyond, artificial intelligence (AI) is revamping business models and creating new opportunities for organizations to innovate. Just as AI is reshaping what is possible across a range of vertical sectors, it is also pulling the cybersecurity profession in a bold, new direction. This AI-powered shift in what is possible will not only change the activities cybersecurity practitioners perform daily but also call for new roles and skill sets to be integrated into the profession.
/jlne.ws/4eZiwDw
Growing cybersecurity insurance market is unrivaled
HIMSS TV
Massive chain cyberattacks, including those against Change and Ascension, have shed new light on the power of these incidents to trigger multiple cyber insurance policies, says Hartmut Mai, president of Cyberwrite.
/jlne.ws/3LcM5Up
Technology and cyber crime: how to keep out the bad guys; Maintaining strict security protocols and monitoring your firm's digital activity can improve your chances of fending off an attack
Lucy Colback - Financial Times
Cyber crime is of increasing concern to nation-states - whether the culprits are other governments or financially motivated hackers. In the US, the 2025 government budget for IT security is $13bn, up from $11.8bn the year before. The UK, too, is wary and this extends to the risk of infiltration via allies: it has set aside £25mn to help friendly governments improve cyber security.
/jlne.ws/3VJAbGm
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| Cryptocurrencies | | Top stories for cryptocurrencies | Coinbase lands $32.5 million U.S. government crypto contract
Altcoin Daily - The Street
America's largest registered crypto exchange, Coinbase, has inked a $32.5 million deal with the Justice Department's U.S. Marshals Service to provide custody and trading of its digital assets. The U.S. Marshals Service is a federal agency dealing with asset forfeiture, including the forfeiture of crypto assets, making crypto custody and the security of its seized digital assets an essential part of its mission.
/jlne.ws/4bvY0Ho
Your crypto transactions may soon show up on an IRS 1099 form. Here's who's impacted
Rachel Christian - Bankrate.com
The landscape of cryptocurrency taxation is changing. The U.S. Treasury Department, in collaboration with the Internal Revenue Service, finalized a rule June 28 requiring cryptocurrency platforms to report user transaction information to the government. The move aims to improve tax compliance and close loopholes exploited by some crypto investors.
/jlne.ws/4eLvZ1w
Flow Traders to fully integrate their exchange trading infrastructure with Copper's ClearLoop; Copper will provide Flow Traders with custody, off-exchange, and OTC settlement services through direct integration.
Claudia Preece - The Trade
Flow Traders has confirmed plans to integrate their exchange trading infrastructure with digital asset services provider Copper's ClearLoop. Through this partnership, Copper will power Flow Traders' custody and trading infrastructure, specifically providing custody, off-exchange, and OTC settlement services through direct integration. Michael Lie, global head of digital assets at Flow Traders, said: "Innovative structures like Copper's Clearloop and the Copper Network are contributing to developing more mature crypto markets, which we believe will enhance trust across the digital asset ecosystem.
/jlne.ws/3zuYnVC
Most Advisors Still Don't Want Anything to Do With Crypto, Report Finds
Kenneth Corbin - Barron's via The Wall Street Journal
As the issue of regulatory approval for exchange-traded crypto funds turned from if to when, speculation mounted that a new crop of bitcoin ETFs could revitalize the slumping digital-asset market. To an extent it has, with the first 11 Bitcoin funds seeing $13.8 billion in inflows since their approval in January, according to a new report from Cerulli Associates.
/jlne.ws/3VJBpBs
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| Politics | | An overview of politics as it relates to the financial markets | Stabenow plans CFTC crypto hearing next week; Stabenow is pushing to advance what she aims to be a bipartisan digital asset bill, while trying to head off rival GOP legislation.
Meredith Lee Hill - Politico Pro
Senate Agriculture Chair Debbie Stabenow (D-Mich.) is making plans to hold a hearing July 11 on cryptocurrency regulation, part of an effort to pass her own bill on the topic before retiring at the end of this term. Stabenow's team is aiming for Commodity Futures Trading Commission Chair Rostin Behnam to testify at the hearing, according to two people familiar with the plans, who were granted anonymity to discuss internal conversations.
/jlne.ws/3W3CTYB
Biden's LNG Export Ban Is Blocked; A judge says the Administration violates the Natural Gas Act.
The Editorial Board - The Wall Street Journal
More good news from the courts. A federal judge on Monday blocked President Biden's permitting suspension for liquefied natural gas (LNG) export projects. On cue, the climate lobby is telling the Administration to ignore the court as it did the law.
/jlne.ws/4bt1lqL
How the Supreme Court became a political battlefield
Bernd Debusmann Jr - BBC News
With decisions on everything from civil rights and the environment to guns and religious freedoms, the US Supreme Court has always played a powerful role in American life. But that role has been changing in some ways, with the court's nine justices - unelected and able to serve for life - now looming larger in the country's politics. As the grand finale of its 2023-2024 term, the court issued a decision to settle what Chief Justice John Roberts wrote was a "question of lasting significance", by ruling that Donald Trump and other ex-presidents have a wide (but not absolute) immunity from criminal prosecution for their actions in office.
/jlne.ws/4cLdFnl
Joe Biden under new pressure to quit race as Democratic disquiet spreads; Lawmaker from party calls on US president to drop out as poll shows voters prefer different candidate
Lauren Fedor and Joshua Chaffin - Financial Times
Joe Biden is facing renewed pressure to end his re-election bid, after a Democratic lawmaker called on him to drop out of the presidential race and state governors sought a White House meeting to discuss his candidacy. Lloyd Doggett, a Democratic congressman from Texas, on Tuesday became the first lawmaker from the president's party to publicly call for Biden to step aside, saying "too much is at stake to risk a [Donald] Trump victory" in November's election.
/jlne.ws/3WiFONr
Kamala Harris' Odds of Winning Democratic Nomination Surge on Polymarket
Marc Hochstein - CoinDesk
Vice president Kamala Harris' odds of becoming the Democratic nominee for president this year more than quadrupled on Tuesday, according to traders on Polymarket, the crypto-based prediction market platform that's seen torrid growth in an election year. "Yes" shares in a contract asking whether she will get the nod traded as high as 31 cents in the afternoon New York time, indicating the market saw a 31% chance it will happen, up from 7% earlier in the day. The shares retraced some gains and recently traded at 23 cents.
Pritzker Urges Biden to Address Americans After Poor Debate
Isis Almeida - Bloomberg
/jlne.ws/45SmsSi
Biden Needs to Go for NATO's Sake Too; Even as he hosts NATO allies next week, the frail US president can't dispel the existential doubt he has sown about the alliance.
Andreas Kluth - Bloomberg
/jlne.ws/3LbZ9sY
London Private Equity Executives Spooked by Labour's Tax Plan Eye Milan Moves; Italian city gaining interest from managers wanting to move; UK's Labour is planning to raise tax on PE's carried interest
Sonja Wind, Sonia Sirletti, Jan-Henrik Foerster, and Luca Casiraghi - Bloomberg
/jlne.ws/3VJvlJc
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| Regulation & Enforcement | | Stories about regulation and the law. | Appeals Court Reinstates $10 Billion Bank Lawsuit After WSJ Investigation Into Conflicts; Federal judge shouldn't have presided over the lawsuit against Bank of America and others, court rules
James V. Grimaldi - The Wall Street Journal
A federal appeals court Tuesday reinstated a $10 billion antitrust lawsuit against 10 banks after finding that a judge who had earlier dismissed the case should have recused himself because of an apparent conflict of interest first exposed by The Wall Street Journal. The Manhattan lawsuit against Bank of America and nine other banks should never have been heard by U.S. District Judge Lewis Liman because his wife owned as much as $15,000 in Bank of America stock when he was assigned the case, the Second U.S. Circuit Court of Appeals ruled.
/jlne.ws/3RS6DoY
Apple ex-lawyer ordered to pay $1.15 million SEC fine for insider trading
Jonathan Stempel - Reuters
The former senior Apple lawyer who avoided prison time after pleading guilty to insider trading must pay a $1.15 million fine in a related U.S. Securities and Exchange Commission civil case, a federal judge ruled on Tuesday. U.S. District Judge William Martini in Newark, New Jersey, said that while Gene Levoff "was not living excessively, his violations were nonetheless especially egregious" given the lawyer's former role enforcing Apple's insider trading policies.
/jlne.ws/4co3aGJ
Hindenburg denies Indian regulator's allegations on Adani short bet
Urvi Dugar, Shankar Ramakrishnan and Jayshree P Upadhyay - Reuters
Hindenburg Research has denied allegations by India's securities regulator that it colluded with a U.S. asset manager to use non-public information to set up a short bet against Adani Group last year, which if proven would breach the country's rules. Hindenburg posted a copy of a 46-page "show cause" notice from the Securities and Exchange Board of India (SEBI) outlining the allegations on its website on Monday, in the latest twist to a saga that began last year when the U.S.-based short-seller alleged improper business dealings by Adani.
/jlne.ws/4cJbIrF
Ex-Billionaire Gets 7 1/2-Year Sentence for Defrauding Investors Goldman, Google
Steve Stroth - Bloomberg
A former jet-setting Chicago billionaire was sentenced to seven and a half years in prison for a $1 billion fraud at an advertising startup that included investors such as Goldman Sachs Group Inc., Google parent Alphabet Inc. and Illinois Governor JB Pritzker's venture capital firm. Rishi Shah, 38, the co-founder of Outcome Health, which provided ads on TVs in doctors' offices, was convicted of more than a dozen fraud and money laundering charges by a federal jury last year. He and two other Outcome executives were sentenced last week in Chicago by US District Judge Thomas Durkin, the US Attorney's Office said in a statement Monday.
/jlne.ws/4cKmspM
CFTC Charges Trading Company With Market Manipulation and Whistleblower Protection Violations
Davis Wright Tremaine LLP via Lexology
Company allegedly manipulated derivatives prices and used NDAs to prevent employees from voluntarily communicating about potentially illegal conduct with investigators and regulators On June 17, 2024, the CFTC's Division of Enforcement announced that it had reached a settlement with Trafigura Trading LLC ("Trafigura") over allegations that the firm manipulated oil derivatives prices while discouraging employees from reporting potentially unlawful activity. In the settlement order, the CFTC alleged Trafigura misappropriated material non-public information, manipulated the benchmark price of U.S. Gulf Coast high-sulfur fuel oil to benefit its futures and swaps positions, and "defrauded its counterparties, harmed other market participants, and undermined the integrity of U.S. and global oil markets," while allegedly requiring employees to sign contracts that failed to provide carve-outs for whistleblowers to freely communicate with federal investigators and regulators about illegal conduct.
/jlne.ws/3xxP9r3
South Korea Imposes Record Short-Selling Fine on Credit Suisse; Bank fined $19.5 million for violations of the rules; South Korea has banned short selling to weed out illegal bets
Youkyung Lee - Bloomberg
South Korea imposed a record 27.2 billion won ($19.5 million) short-selling fine across two Credit Suisse affiliates, as the nation attempts to stamp out illegal trading that it sees as hurting fairness in the market. The country's Securities and Futures Commission decided to impose a 16.9 billion won penalty on Credit Suisse AG and 10.2 billion won fine on Credit Suisse Singapore Ltd., the Financial Services Commission said in a statement Wednesday.
/jlne.ws/4cHyJLs
Federal Court Orders Unregistered Michigan Pool Operator and its President to Pay Over $13 Million for Forex Fraud
CFTC
The Commodity Futures Trading Commission today announced Judge Sean F. Cox of the U.S. District Court for the Eastern District of Michigan entered a supplemental consent order against Dwight A. Foster and his firm K.E.L. Enterprises, Inc., both based in the West Bloomfield, Michigan area. The supplemental consent order requires Foster and KEL to pay, jointly and severally, $4,548,390.51 in restitution to defrauded victims, $803,126.83 in disgorgement, and a $1.6 million civil monetary penalty in connection with a fraudulent foreign currency (forex) scheme. On July 18, 2023, the court entered an initial consent order of permanent injunction against Foster and KEL. The initial consent order imposed a permanent injunction against Foster and KEL and banned them from trading in any CFTC-regulated markets and registering with the CFTC.
/jlne.ws/4csRtyO
SEC Updates Website to Improve Compliance, Functionality, and User Experience
SEC
The Securities and Exchange Commission today announced enhancements to its website to improve compliance with federal statutes and standards as well as the site's functionality. The updates will improve the website's user experience for market participants and the public.
/jlne.ws/4cqN6nF
Statement on Jury's Verdict in Trial of Guy Gentile, founder, owner, and CEO of MintBroker International, Ltd., f/k/a Swiss America Securities Ltd. and d/b/a SureTrader
SEC
Today, after a ten-day trial, a jury in the United States District Court for the Southern District of Florida found Guy Gentile, the founder, owner, and CEO of MintBroker International, Ltd., f/k/a Swiss America Securities Ltd. and d/b/a SureTrader, a Bahamas-based broker-dealer, liable as a control person of SureTrader, which operated as a broker-dealer in the United States without being registered, in violation of the federal securities laws. The jury also found Guy Gentile liable for inducing SureTrader's registration violations.
/jlne.ws/3VSRc0X
Silvergate Capital Corporation, Alan J. Lane, Kathleen Fraher, and Antonio Martino
SEC
The Securities and Exchange Commission charged Silvergate Capital Corporation, its former CEO Alan Lane, and former Chief Risk Officer (CRO) Kathleen Fraher with misleading investors about the strength of the Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance program and the monitoring of crypto customers, including FTX, by Silvergate's wholly owned subsidiary, Silvergate Bank. The SEC also charged Silvergate and its former Chief Financial Officer, Antonio Martino, with misleading investors about the company's losses from expected securities sales following FTX's collapse. All parties charged, aside from Martino, have agreed to settle the SEC's charges.
/jlne.ws/4cPIVSp
Hedonova Fund LLC Hedonova Advisors LLC
SEC
On June 24, 2024, the Securities and Exchange Commission filed a complaint in federal court in Los Angeles alleging that Hedonova LLC ("the Hedonova Fund"), a purported mutual fund for alternative assets, and Hedonova Advisors LLC, its investment adviser, perpetrated a fraudulent offering.
/jlne.ws/3LbkZgm
SEC Charges Dallas-Area Resident with Securities Fraud
SEC
The Securities and Exchange Commission announced today charges against George Lewis Parsons II for engaging in an offering fraud that raised over $4.8 million from retail investors.
/jlne.ws/3RSbmXN
SEC Charges Newport Beach Real Estate Investment Companies and CEO with Fraud for Misappropriating Investor Assets
SEC
On July 2, 2024, the Securities and Exchange Commission charged Newport Beach, California-based John J. Kralik V and his companies JKV Capital, LLC (JKV Capital) and JKV LLC for making false statements to investors and misappropriating investor money from five real estate investment funds for Kralik's personal benefit, including for his wholly-owned entity, Relief Defendant JKV Homes, LLC (JKV Homes).
/jlne.ws/3xKjEdq
ASIC disqualifies former financial and insurance services industry director for five years
ASIC
ASIC has disqualified former financial and insurance services industry director, Christian Oey, of Dural NSW, from managing corporations for the maximum period of five years due to his involvement in the failure of three companies. Between May 1999 and November 2018, Mr Oey was the director of two companies in the financial services industry: Clickthru Pty Ltd and O'Corp Media Pty Ltd.
/jlne.ws/3xQ3vD2
Australian equity market cleanliness a crucial ASIC priority
ASIC
Supervising the integrity of Australia's equity markets is one of ASIC's most important functions. Our market is among the cleanest in the world, and we are constantly seeking out any misconduct. While we are targeting leaks ahead of market announcements and insider trading, listed entities have a role to play in protecting their confidential information and reporting misconduct to ASIC.
/jlne.ws/4bwpjBo
AAT amends ASIC's permanent ban made against Todd Karamian
SEC
The Administrative Appeals Tribunal (AAT) has varied ASIC's decision to permanently ban Todd Karamian from providing financial services and carrying on a financial services business after he falsified his financial adviser exam result. The AAT varied the banning on 25 June 2024 from permanent to seven years.
/jlne.ws/3VNZAyz
FMA censures deVere for breaching its licence obligations
FMA
The Financial Markets Authority (FMA) - Te Mana TÄtai Hokohoko - has censured Auckland-based financial services firm deVere New Zealand Limited (deVere) for failing to comply with obligations under its Financial Advice Provider (FAP) licence. DeVere provides advice on insurance, investments, and retirement planning, including KiwiSaver and UK pension transfers. The censure relates to issues concerning deVere's conduct while advising clients on UK pension transfers.
/jlne.ws/3VPG5Wr
Publication of the summary of "Annual Report on Insurance Monitoring 2024"
FSA
The FSA published the summary of "Annual Report on Insurance Monitoring 2024," which organized the FSA's efforts from July 2023 to June 2024 to enhance the transparency of Insurance Supervision.
/jlne.ws/4ePrxio
Court convicts and fines Tse Tsun Wai for unlicensed activity
SFC
The Eastern Magistrates' Court has convicted Mr Tse Tsun Wai of holding himself out as performing a regulated function in relation to dealing in securities without a licence from the Securities and Futures Commission (SFC) (Notes 1 and 2). Tse pleaded guilty to the offence and was fined $4,800 and ordered to pay a sum of $50,000 as compensation to a retail investor who was a victim of the purported investment scheme. This is the first time the Court has made a compensation order in an SFO's section 114(3) case.
/jlne.ws/3zqjQyS
Hedge fund manager ordered to disgorge $5.6 million illicit profit from false trading and disqualified for four years
SFC
The Market Misconduct Tribunal (MMT) has ordered Mr Jonathan Dominic Iu Wai Ching, a former responsible officer of Tarascon Capital Management (Hong Kong) Limited (Tarascon), to disgorge illicit profit of over $5.6 million from false trading and disqualified him for four years following legal proceedings brought by the Securities and Futures Commission (SFC) (Note 1).
/jlne.ws/3XJWhLB
FSC amends the Regulations Governing Establishment of Internal Control Systems by Public Companies and the Regulations Governing the Establishment of Internal Control Systems by Service Enterprises in Securities and Futures Markets
FSC
In view of the growing international concern for environmental, social and governance (ESG) and other sustainable development issues, and in line with Taiwan's measures to promote enhanced disclosure of sustainability information in annual reports and the compilation of sustainability reports by Taiwan Stock Exchange (TWSE)-listed and Taipei Exchange (TPEx)-listed companies, the Financial Supervisory Commission (FSC) on 22 April 2024 issued amendments to certain articles of the Regulations Governing Establishment of Internal Control Systems by Public Companies and to Articles 8, 14, and 39 of the Regulations Governing the Establishment of Internal Control Systems by Service Enterprises in Securities and Futures Markets. The amendments expressly require TWSE-listed and TPEx-listed companies as well as service enterprises in securities and futures markets to incorporate the management of sustainability information into their internal control systems and to designate it a mandatory audit item. The amendments will come into force from 1 January 2025.
/jlne.ws/3xMlcDB
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Sucden Financial Reports Continued Strong Financial Performance in 2023
Sucden Financial
Sucden Financial, the multi-asset execution, clearing and liquidity provider, has reported positive audited financial results for the year ending 31 December 2023, with profit and total net assets increasing significantly.
/jlne.ws/4chdAYN
Cocoa's Extreme Shortage Is Finally Set to End, Marex Says; Broker expects better weather in West Africa will boost crops; Cocoa futures have more doubled in the past 12 months
Dayanne Sousa - Bloomberg
A recovery in cocoa production in the world's largest growers is set to put an end to a massive bean shortage that sent prices surging to a record this year, according to commodities broker Marex Group. Marex expects cocoa output will top demand by 303,000 metric tons in the upcoming 2024-25 season that starts in October. That would mark the first year of surplus after three straight seasons of deficit. Cocoa futures in New York have more doubled in the past 12 months as supply shortages significantly drained global stockpiles. The rally has even drawn in famed energy trader Pierre Andurand, who recently stepped away from oil markets while sticking with a bullish outlook on cocoa.
/jlne.ws/4cnNIug
Southwest Air Adopts Poison Pill to Counter Activist Elliott
Ryan Beene - Bloomberg
Southwest Airlines Co. has adopted a shareholder rights plan to defend against a push for a leadership overhaul and other changes by activist firm Elliott Investment Management. Commonly known as a "poison pill," the plan aims to dissuade what Southwest called "de facto or negative control" of the airline without compensating other shareholders, the airline said in a statement Wednesday. It comes after Elliott in June disclosed a $1.9 billion stake in the airline and demanded new leadership and a revamp of Southwest's business to better compete with other airlines.
/jlne.ws/3zrZJAx
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Head of group overseeing corporate climate targets quits after backlash; Luiz Amaral, CEO of the Science Based Targets initiative, cites personal reasons for exit but move follows dissent
Attracta Mooney - Financial Times
The chief executive of the world's leading arbiter of corporate climate targets said he was stepping down for "personal reasons", in the wake of staff calls for him to quit over the Science Based Targets initiative's stance on carbon offsets. Luiz Amaral will leave his role as chief executive of SBTi at the end of this month, and chief legal officer Susan Jenny Ehr will step in as interim CEO. Dozens of SBTi staff members called for Amaral's resignation after the organisation said in April that the companies it assesses would be allowed to use carbon offsets at scale to meet their climate pledges.
/jlne.ws/3W6G1CZ
BlackRock navigates climate proposals with new voting policy; World's biggest asset manager attempts to balance the demands of European and US clients on decarbonisation
Brooke Masters - Financial Times
BlackRock funds with specific climate change mandates will vote differently on shareholder proposals than the rest of the $10.5tn money manager's holdings, in its latest effort to deal with the political split over decarbonisation. The world's largest asset manager said on Tuesday that its new policy would allow clients in climate-focused funds to take an activist position on shareholder proposals about decarbonisation.
/jlne.ws/3L6uwFg
Italian steel plant launches trial to use hydrogen to cut emissions
Reuters
Italian gas grid operator Snam, steel pipe maker Tenaris and green technology firm Tenova are trialing the use of hydrogen fuel at a Tenaris steel plant in northern Italy in a bid to cut emissions, they said on Wednesday. According to a joint statement from the groups, the trial to use hydrogen fuel in a reheating furnace at the plant in Dalmine, near Bergamo, will last six months.
/jlne.ws/4cozyt2
Shell pauses construction at one of Europe's biggest biofuels plants; Work on energy transition project in Rotterdam will be further delayed
Malcolm Moore - Financial Times
/jlne.ws/3xKUs6u
Costs Jump at World's Biggest Nuclear-Fusion Project With Delays; ITER reactor in France risks being overtaken by private rivals; $5 billion budget increase is expected later this year: ITER
John Ainger and Jonathan Tirone - Bloomberg
/jlne.ws/4cozpG0
US Supreme Court gives miners, farmers new shot at overturning regulations
Tom Hals - Reuters
/jlne.ws/4cqNJxx
Europe's Nuclear Revival Lacks a Key Ingredient: Skilled Workers; Hundreds of thousands of welders, engineers and planners are needed to build reactors for the energy transition.
Francois De Beaupuy and Lars Paulsson - Bloomberg
/jlne.ws/3xI4V2u
Costs Jump at World's Biggest Nuclear-Fusion Project With Delays; ITER reactor in France risks being overtaken by private rivals; $5 billion budget increase is expected later this year: ITER
John Ainger and Jonathan Tirone - Bloomberg
/jlne.ws/4cqPIlA
UK Water's Political, Legal Risks Bring 'Uninvestable' Warning; Sector faces political scrutiny after Thames Water crisis; United Utilities shares rebound after sinking on Tuesday
Joe Easton and Allegra Catelli - Bloomberg
/jlne.ws/3ROZqWM
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Interactive Brokers enhances APAC reach with extended Korean derivatives trading hours; The Eurex/KRX link offering enhances and aligns trading opportunities for users across the Korean, US, and European time zones.
Claudia Preece - The Trade
Interactive Brokers has launched the Eurex/KRX link, extending trading hours for Korean KOSPI 200 derivatives. Specifically, the offering enhances and aligns trading opportunities for users across the Korean, US, and European time zones, making Korean derivatives available during US and European trading hours. Milan Galik, chief executive of Interactive Brokers highlighted exactly what time means for users: "Clients can now take advantage of extended hours to trade in one of the world's most liquid derivatives markets. Our global client base, including APAC, European and American clients, benefit by having access to KOSPI derivatives during normal and extended trading hours, regardless of location."
/jlne.ws/4d4FV4L
JPMorgan's Kolanovic to Exit Amid String of Poor Stock Calls; Lakos-Bujas takes over as the bank's chief market strategist; Hussein Malik to be JPMorgan's sole head of global research
Alexandra Semenova - Bloomberg
Marko Kolanovic, JPMorgan Chase & Co.'s chief global market strategist and co-head of global research, is leaving the bank, according to an internal memo obtained by Bloomberg News. Kolanovic, who has been at JPMorgan for 19 years, is "exploring other opportunities," the memo stated. Dubravko Lakos-Bujas will lead market strategy and become chief market strategist, overseeing cross-asset, equity, and macro. Hussein Malik will be the sole head of global research.
/jlne.ws/4eGjZ1c
Private Funds' Hundreds of Billions of Opaque Debts Need Light; UK and European bank regulators are right to keep watchful eyes on the risks of lending to private capital funds and their associates.
Paul J. Davies - Bloomberg
The dearth of private equity deal-making has been a nightmare for big investment banks used to getting 20% to 30% of their total advisory revenue from the industry. But while fund managers have been starved of takeovers and public stock listings or other investment exits, banks have helped raise cash and move it around in other ways as they desperately try to keep their investors happy.
/jlne.ws/4cPLXpL
Ex-Bank of America Merrill Lynch VP joins Goldman Sachs in ETF role; Individual has previously served at: Macquarie Group, ETF Securities, AECOM, and Bank of America Merrill Lynch.
Claudia Preece - The Trade
Jessica Lane has been named executive director - ETF distribution at Goldman Sachs having previously spent almost six years at Bank of America Merrill Lynch. Prior to the move, Lane worked as vice president - institutional commodity sales EMEA, ETFs, quantitative investment strategies QIS). She has also previously worked at Macquarie Group, ETF securities and AECOM.
/jlne.ws/4clTsom
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | The Jiggle Is Up: Bosses Bust Workers Who Fake Computer Activity; Companies' productivity-tracking tools are getting more sophisticated in detecting when remote workers are pretending they're busy
Sanvi Bangalore - The Wall Street Journal
It's getting harder to outsmart the digital minders at work. The rise of remote work and, in turn, employee-monitoring software sparked a boom in mouse and keyboard jigglers and other hacks to help staffers fake computer activity-often so they can step away to do laundry or a school pickup. Now some companies are cracking down on the subterfuge, deploying tools that can better spot the phony busywork.
/jlne.ws/3XJ49gl
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Cocaine Surge Is Public Health 'Time Bomb,' EU Drugs Chief Warns; EU Drugs Agency director speaks in Bloomberg interview; Agency takes on expanded mandate to respond to drugs wave
Max Ramsay - Bloomberg
Europe needs to brace for the costly public health consequences of higher drug use in the coming years as it continues to battle a massive inflow of cocaine and the resulting spike in trafficking-related violence, warns the head of the newly revamped European Union drugs agency. Alexis Goosdeel said in an interview that it will likely take at least two to three years to see the broader impact on Europeans' health, which would put further pressure on countries' budgets.
/jlne.ws/4cIoHtB
Moderna wins US funding for bird flu vaccine as animal infections grow; Federal health officials step up efforts to boost jab stockpiles in response to widening outbreak
Oliver Barnes - Financial Times
Moderna will receive $176mn in US government funding to support a late-stage trial of its bird flu vaccine, as health officials step up efforts to boost vaccine stockpiles in response to a growing outbreak among farm animals. H5N1 bird flu has been detected on poultry farms in almost every US state and in dairy herds in a dozen states, making it the biggest outbreak in recent years, according to the US Centers for Disease Control and Prevention. Three dairy workers have also become infected because of exposure to cattle.
/jlne.ws/3RS2vFo
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | "Failed" Australian corporate watchdog should be spilt in two, Senate inquiry finds
Rishav Chatterjee - Reuters
Australia's corporate watchdog should be split into two after "comprehensively" failing in its role, including by not taking action against offenders and focusing more on managing its reputation, a months-long Senate inquiry found on Wednesday.
The Australian Securities and Investments Commission's (ASIC) scope was too broad for it to be effective and efficient and the government should consider splitting its functions between a companies regulator and a financial conduct authority, the Senate Economics Committee report said.
/jlne.ws/3VHSsni
Majority of Fitch-Rated Islamic Banks Use Islamic Derivatives
Fitch Ratings
Fitch Ratings-Dubai-02 July 2024: Demand for sharia-compliant risk-management tools, such as Islamic derivatives, is gradually rising in many Muslim-majority countries as their Islamic banks' domestic market shares grow, and financial sector development and risks due to interest rates, foreign exchange rates, and commodity prices rise, Fitch Ratings says. Nearly three-quarters of Fitch-rated Islamic banks used Islamic derivatives in 2023-1H24 to hedge risks, which could support their credit profiles. However, sharia restrictions and differing interpretations, treasury infrastructure gaps, lack of standardisation, and regulatory issues prevented full take-up.
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Turkish inflation cools for first time in 8 months; Consumer prices increase 71.6% in June in sign that Ankara's pivot away from unconventional monetary policy is working
Adam Samson - Financial Times
Turkey's inflation rate has cooled for the first time in eight months, bolstering policymakers' hopes that a long-running cost of living crisis is easing a year after Ankara launched a sweeping economic turnaround plan. Consumer prices increased 71.6 per cent in June from the same month in the previous year, a slower rate than expected and down from a nearly two-year high of 75.5 per cent in May, according to official data.
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Lufthansa gets EU nod to buy $350 million stake in Italy's ITA
Foo Yun Chee, Ilona Wissenbach and Angelo Amante - Reuters
Lufthansa won EU antitrust approval to buy 41% of ITA Airways for 325 million euros ($350 million) on Wednesday after ceding routes and slots, with the news boosting rival IAG's shares and hopes for its takeover of Air Europa. The deal will boost Lufthansa's presence in the lucrative southern European market and is one of three high-profile sector transactions in Europe, underscoring efforts by its airlines to boost scale to offset rising operating costs.
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Russian Wheat Gets Cheaper Than Rivals as Weather Aids Harvest
Aine Quinn - Bloomberg
Russian wheat prices have dipped below other origins again, as hot weather speeds up harvest there and traders compete with rival exporters. Wheat-export prices in the world's top shipper had spiked in May as unseasonable frosts and dry weather caused analysts to lower their production estimates. The higher prices saw Moscow's exporters lose out on some deals. In recent weeks major importer Egypt had been buying the grain from destinations like Romania and Bulgaria because of better prices.
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World Bank Gives Zambia $200 Million for Drought Response
Taonga Mitimingi and Matthew Hill - Bloomberg
The World Bank has approved a further $200 million of grants for Zambia to help the nation cope with its worst drought in decades, according to a statement from the Finance Ministry. The Washington-based lender also approved an almost $8 million grant for women and girl empowerment, the ministry said Tuesday, citing a letter from the World Bank.
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South Africa business activity falls in June, PMI shows
Reuters
South African private sector activity fell in June as output and new orders slipped on uncertainty over the outcome of an election held in May, a survey showed on Wednesday. The S&P Global South Africa Purchasing Managers' Index fell to 49.2 in June from 50.4 in May. A reading below 50 indicates contraction.
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Kenya's private sector activity contracts in June, PMI shows
Reuters
Kenya's private sector activity fell in June, hit by the impact of widespread protests against a now-shelved finance law, a business survey showed on Wednesday. The Stanbic Bank Kenya Purchasing Managers' Index (PMI) fell to 47.2 in June from 51.8 in May. Readings below 50.0 signal contraction.
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| Miscellaneous | | Stories that don't quite fit under the other sections | French 'Excalibur' sword vanishes after 1,300 years as the sword in the stone - literally
New York Post
An ancient sword known as the French version of King Arthur's legendary "Excalibur" has mysteriously vanished from the town where, according to local lore, it had remained lodged in a rock for 1,300 years. The Durandal sword appears to have been taken by a thief from its stone in the tiny medieval town of Rocamadour, where it was one of the town's main attractions, The Telegraph reported. For centuries it's been believed the sword once belonged to Roland, a semi-legendary knight who bravely fought for Charlemagne in the eighth century.
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