| November 19, 2024 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
With the move by President Biden to allow Ukraine to use U.S. missiles inside Russia, and Ukraine wasting no time in trying out this new policy, Russia's Vladimir Putin raised the stakes by lowering the Russian protocols for using nuclear weapons. What we need is a giant clock telling us if WWIII is closer (or already happening).
Yesterday, the Financial Times' Philip Stafford reported that Donald Trump's Media and Technology Group (TMTG), the operator of Truth Social, which trades on Nasdaq under the symbol DJT, is in advanced discussions to acquire Bakkt, a cryptocurrency trading platform fifty-five percent owned by Intercontinental Exchange (ICE). Following news of the talks, Bakkt's shares surged by 162%, while DJT's shares rose 16.7%.
Of course, in 2021 Stafford reported that CME Group had approached Cboe Global Markets with a $16 billion takeover proposal. However, both CME and Cboe denied the existence of such discussions, and no merger materialized. Let's call that a deniable backchannel trial balloon by someone connected to CME that blew up in Stafford's face.
Luckily for this deal, Bakkt was not delisted from NYSE in April when it was in non-compliance with the exchange's listing standards because its Class A Common Stock shares had an average closing price below $1.00 per share over a consecutive 30-day trading period. Bakkt engineered a 25 to 1 reverse stock split to bring it back into compliance. That move allowed its shares to jump 15% last week, before the Financial Times story broke.
Both of these companies struggle to make money, so it could be a case of a match made in heaven, or some other place where deals get made. The deal supposedly does not include Bakkt's crypto custody business, which was core to its initial business model but generated a loss of $27,000 on revenues of $328,000 in the three months up to September 30, the FT reported.
TMTG generated $2.6 million in revenues this year but has a $6 billion valuation, which gives it the currency to do deals like this. Maybe given the growth at Bluesky, which has seen 1 million new users per day over the last few days, it should make a bid for Bakkt.
FIA Tech today announced it has introduced 'Sanctioned Securities' to its Databank Network, effective December 2, 2024. This tool cross-references global sanctions lists from the US, UK, and EU to identify exchange-traded derivatives (ETD) linked to indices or stocks that include sanctioned entities. It provides details on the number of sanctioned entities within an index and the associated government agency program for each. This addition aims to assist market participants in managing compliance risks related to trading ETD products involving sanctioned entities. 'Sanctioned Securities' complements other regulatory reference data services in FIA Tech's Databank Network, such as the Foreign Security Futures classification data set and the Position Limits Databank.
Trading Technologies International, Inc. (TT) today announced plans to offer clients access to Cboe equity index options, including S&P 500 Index (SPX), Cboe Volatility Index (VIX), Russell 2000 Index (RUT), and Mini SPX (XSP) options, starting in early 2025. This initiative aims to meet the growing demand for U.S. equity options, particularly from firms in the Asia-Pacific region.
CQG today announced it will offer day-one access to the MIAX Futures Exchange's new Onyx matching engine, set to launch in June 2025. This integration will enable CQG clients to trade MIAX Futures products, including upcoming Bloomberg equity index futures, through CQG's platforms and APIs.
BMLL announced today that it has expanded its data offerings to include six years of nanosecond-level, unconflated Options Price Reporting Authority (OPRA) data, now accessible globally via BMLL Data Lab and BMLL Data Feed through AWS S3. This addition complements BMLL's existing coverage, which encompasses 98% of the MSCI All-Country World Index, and aligns with their multi-asset strategy. The OPRA data, sourced from all U.S. equity options exchanges, provides traders, brokers, institutional investors, and market makers with comprehensive insights into liquidity dynamics and market behavior.
DePaul University's Arditti Center for Risk Management's 11th Annual Cyber Risk Conference, themed "The Cyber Resilient Organization," is scheduled for Tuesday, December 3, 2024, from 9:00 AM to 5:00 PM CST. The event will take place at the DePaul Center, located at 1 East Jackson Boulevard, 8th floor Conference Center Room 8005, Chicago, IL 60604. Organized by the Department of Finance and Real Estate, in collaboration with the Jarvis College of Computing and Digital Media and the College of Law, the conference aims to explore the growing impact of cyber resilience on business, government, and law. The agenda includes distinguished speakers and panels covering topics such as innovative cyber resilience strategies, regulatory and insurance perspectives on preparedness, and workforce development in professional and college education.
With all this volatility, do you get a little trigger-happy to make trades? In the wake of Donald Trump's election victory, global equity markets have experienced heightened volatility, with significant movements in sectors such as banking and alternative energy. Robert Buckland, a senior adviser at Engine AI and Investa, and former chief global equity strategist at Citigroup, wrote in the Financial Times emphasizing the importance of discerning long-term trends from short-term market noise. He recounts strategies employed by seasoned investors to filter out transient market fluctuations: A pension fund manager maintained a year's worth of Financial Times issues, reading the current day's paper and revisiting the one from exactly a year prior. This approach helped him identify enduring themes and avoid reacting to fleeting market events. Another portfolio manager focused on stocks that exhibited positive momentum over 11 of the past 12 months, deliberately ignoring the most recent month's performance to sidestep short-term volatility. Buckland suggests that, rather than hastily adjusting portfolios in response to immediate market reactions, investors should concentrate on persistent, long-term trends to make more informed decisions.
Bloomberg has a story today for you non-hackers, duffers and shankapotamuses titled "The Most Exciting New Golf Courses to Play in 2025" with the subheadline "Around the world, links are coming that'll be worth getting on a plane for." The courses include: Broomsedge in South Carolina, Scarecrow in Washington, Cobbs Creek Golf Campus in Pennsylvania. Kinsale Golf Club in Florida, Old Petty at Cabot Highlands in Scotland, Childress Hall in Texas, Shura Links in Saudi Arabia, Loraloma in Texas and Palmetto Bluff in South Carolina.
Here are the headlines from in front of FOW's paywall from some recent stories: CME sets January for first mortgage rate futures launch, UK fund managers hedging FX to guard against volatility - survey, BMLL goes live with US equity options dataset, ANALYSIS: Cboe to launch options education push after survey, ANALYSIS: EEX points to onboarding advantage amid Nordic power competition and One Trading partners with Solidus Labs to meet European crypto regulation.
If you have ever done any traveling, you may have bought a travel book from Frommers. Arthur Frommer, who, after he published "Europe on 5 Dollars a Day" in 1957, went on to build an empire of guidebooks, package tours, hotels and other services, has died in New York at the age of 95, The New York Times 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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Women In Listed Derivatives (WILD) is inviting WILD members and non-members to attend "Take WILD to Work Tour: Akuna Capital" on Tuesday, December 10 from 4:30 PM - 6:30 PM Central Time. The event is at 333 South Wabash Avenue, 26th Floor, Chicago, IL 60604 - Akuna Capital's offices. There will be a presentation titled "Women at Akuna: The New Wave in Tech and Trading" led by some of Akuna's women in Quant, Trading and Technology. WILD will discuss the role of women shaping the future of technology specifically aimed for those in Quant, Technology and Trading. This will be followed by a happy hour and networking event in Akuna's OTC Coffee Bar from 5:00-6:30 pm. You can go here to register. ~SR
Our most read stories from our previous edition of JLN Options were:
- Nasdaq Poised to List Spot-Bitcoin ETF Options as Crypto Assets Rally from Bloomberg.
- CFTC Clears Way for Spot Bitcoin ETF Options from MarketsMedia.
- China's Dream of 'Powerful Currency' Runs Into Trump's Return from Bloomberg. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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From Pit to Profit: One Trader's Journey from Market Crash to Market Maker
JohnLothianNews.com
When Kevin Jamali first stepped onto the trading floor of the Chicago Board of Trade, he wasn't just reaching for financial success-he was seeking redemption for a childhood trauma he barely understood.
Watch the video »
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Picking a Broker: Futures Discovery EP 16
JohnLothianNews.com
Choosing the right broker is fundamental to your trading success. This process involves several important considerations to ensure you select a broker that meets your needs and helps you achieve your trading goals. First and foremost, it's essential to verify the broker's regulatory compliance. Make sure they are registered with appropriate regulatory bodies, such as the U.S. Commodity Futures Trading Commission, CFTC. This registration is a mark of legitimacy and ensures brokers adhere to the industry standards and regulations.
Watch the video »
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The Legal Mind Behind Futures Industry Landmarks, Part Four
JohnLothianNews.com
In the final segment of the John Lothian Profiles interview, veteran attorney William Nissen shared his thoughts on more landmark cases and the evolution of CFTC enforcement practices and their impact on the industry.
Watch the video »
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Bitcoin's shift towards respectability should concern us all; Regulators have not put in the necessary controls needed to address underlying disclosure, manipulation and systemic risks
Stephen Diehl - Financial Times
Remember when cryptocurrency was supposed to disrupt and replace finance? Well, history had other plans. As bitcoin surges past $85,000, doubling in price over the past year, we find ourselves in what might be called an "institutional legitimacy paradox". Consider the historical irony: bitcoin, conceived as a peer-to-peer electronic cash system that would eliminate the need for financial intermediaries, is now primarily traded through funds managed by the very intermediaries it was meant to circumvent.
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***** Why should we be worried about a technology that was created to get around all of the laws and controls we have in place to safeguard society?~JJL
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A Nudge From JPMorgan Spurred UK to Probe Staley's Epstein Links; Documents from JPMorgan prompted FCA's probe, watchdog says; 'This is what kicked everything off,' judge says in hearing
Harry Wilson and Jonathan Browning - Bloomberg
A cache of documents provided by JPMorgan Chase & Co. was what led British regulators to begin an investigation into the links between Jeffrey Epstein and former Barclays Plc Chief Executive Officer Jes Staley, a court was told. JPMorgan informed the Financial Conduct Authority in November 2019 that it had identified "various documents" that showed the relationship between Staley, a former senior JPMorgan executive, and the late pedophile financier, according to a London court filing. After being informed of the existence of the cache, the British regulator compelled JPMorgan to hand over the documents and opened a formal probe into Staley. That investigation ultimately led to his firing and resulted in him being permanently banned from the UK financial services industry.
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*****Someone at JPM did not like ole Jes. One wonders why when he is doing business and hanging out with the likes of Jeffrey Epstein. Banks and Bankers may be known for loose ethical standards in the quest for making money over the years, but everyone has a line not to cross. ~JJL
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It's the data, stupid: a foundation for robust AI models
Christopher Edmonds - Intercontinental Exchange
In the aftermath of the U.S. Presidential election, there are plenty of questions about the interpretation of polling data. Yet the 'known unknowns' like voter turnout means the ability of this data to predict a specific result will likely remain limited. It's a very different data story in financial markets. In fixed income, an explosion in available data means market participants are challenged to analyze vast amounts of information in near real time. It's a task that exceeds human capabilities, where tools like artificial intelligence could be transformative - picture huge advances in algorithmic trading, risk management, or automating best trade execution. Whether applications like this are realized remains to be seen. But we know one thing for certain: AI financial models need a ton of data to learn.
/jlne.ws/3AZJefT
***** Chris Edmonds doing his best James Carville impersonation, but about data, not the economy.~JJL
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Monday's Top Three
Our top story Monday was The new titans of Wall Street, subtitled "The rise of innovative traders increases competition for banks - and work for authorities," an opinion piece from the editorial board of the Financial Times. Second was FCMs question US Treasury clearing timeline - Acuiti, from FOW. Third was The Best Thing About Retirement, According to WSJ Readers, from The Wall Street Journal.
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| Lead Stories | Donald Trump's social media group in talks to buy crypto trading venue; Truth Social owner is close to an all-share takeover of Intercontinental Exchange's Bakkt
Philip Stafford - Financial Times
Donald Trump's social media company is in advanced talks to buy Bakkt, a cryptocurrency trading venue owned by Intercontinental Exchange, as it pushes to expand beyond online conversation. The US president-elect's Trump Media and Technology Group, in which he has pledged to retain his 53 per cent stake, is closing in on an all-share purchase of Bakkt, said two people with knowledge of the talks. The valuation under discussion was not immediately clear but Bakkt's market capitalisation stood at just over $150mn on Monday. TMTG, which operates Truth Social, has become one of the most actively traded US stocks since Trump's election victory as retail investors try to profit on its often-volatile trading moves. Although it has reported just $2.6mn in revenues this year, TMTG has a $6bn equity valuation, giving its management a valuable currency with which to buy other companies. Bakkt shares soared 162 per cent after the FT reported the talks. TMTG shares were up about 16.7 per cent.
/jlne.ws/3UXoMmT
Corporate insiders cash in on post-election US stock market surge; Insider sales reach all-time high as executives from Goldman Sachs to Tesla lock in equity gains
Patrick Temple-West and Joshua Franklin - Financial Times
Record numbers of US executives are selling shares in their companies, as corporate insiders from Goldman Sachs to Tesla and even Donald's Trump's own media group cash in on the stock market surge that has followed his election victory. The rate of so-called insider sales has hit a record high for any quarter in two decades, according to VerityData. The sales, by executives at companies in the Wilshire 5000 index, include one-off profit-taking transactions as well as regular sales triggered by executives' automatic trading plans. The Wilshire 5000 is one of the broadest indices of US companies.
/jlne.ws/3AMbyCy
EU regulator proposes shortening trade settlement times from October 2027; Esma recommendation will align bloc's move with UK plans
Nikou Asgari - Financial Times
EU regulators have recommended the bloc shorten the time it takes to finalise stock, bond and fund trades from October 2027, setting the region up to align with the UK's plans to upgrade its capital markets. The European Securities and Markets Authority on Monday proposed the date of October 11 2027 for the move, as it seeks to modernise and boost liquidity on its markets at a time when policymakers are urgently seeking to re-energise the region's capital markets.
/jlne.ws/40VgaAS
Climate action to have 'limited impact' on financial system, EU finds; Regulators complete first stress test to estimate how climate fight will affect banks, insurers and pension funds
Martin Arnold - Financial Times
European regulators found there would be only a "limited impact" on the financial system from the EU's drive to cut carbon emissions by 55 per cent by 2030, even if it caused investors to ditch polluting companies. The EU's top financial watchdogs on Tuesday said their first stress test to estimate how the fight against climate change would affect banks, insurers, pension funds and investors concluded it "would not be a concern for financial stability per se during the green transition".
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Proposed EU move to T+1 could eradicate 'suboptimal' ETF dynamics; The European Securities and Markets Authority has recommended the EU move to one-day settlement in Q4 2027
Emma Boyde - Financial Times
The European market regulator's recommendation that the EU move to one-day trade settlement (T+1) in October 2027 would remove a costly burden from the exchange traded fund industry, market participants say. Fund managers issuing European-listed US equity ETFs are currently grappling with a mismatch. When demand for their ETFs rise, they need to buy the underlying constituents, which settle in T+1, on the following day, but have to wait another day to receive payment, due to Europe's current T+2 model. This also applies to many other overseas-listed stocks.
/jlne.ws/3YWcWdV
'Crocodile of Wall Street' Gets 18 Months in Crypto Case; Heather Morgan helped hide Bitcoin from 2016 Bitfinex hack; Husband, who hacked exchange, got five years in prison
Sabrina Willmer - Bloomberg
The woman who dubbed herself the "Crocodile of Wall Street" and "Razzlekhan" in rap videos was ordered to serve 18 months behind bars for helping her hacker husband launder cryptocurrency he stole from the Bitfinex exchange. Heather Morgan, 34, was sentenced Monday in Washington federal court. Last week, her husband, Ilya Lichtenstein, got five years in prison for his role in the scheme, which stemmed from his 2016 hack of the exchange and the theft of Bitcoin currently worth billions of dollars. Both pleaded guilty last year.
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Howard Lutnick and Scott Bessent's battle to be Trump's Treasury secretary turns bitter; Wall Street factions fight for top economic post in president-elect's cabinet
James Fontanella-Khan, Colby Smith and James Politi and Alex Rogers - Financial Times
Howard Lutnick and Scott Bessent are at the centre of an increasingly bitter battle to be Donald Trump's Treasury secretary, as Wall Street factions fight to discredit each other's candidate. Several financiers who supported Trump's election bid moved on Monday to kill off Lutnick's chances, saying he lacked the experience for the position and was abusing his position as a leader of the transition team to promote himself for the job.
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Trading Technologies to offer clients access to Cboe equity index options; Move gives TT platform users access to rapidly growing equity options space
Trading Technologies International, Inc.
Trading Technologies International, Inc. (TT), a global capital markets technology platform provider, announced today that it will soon offer clients access to Cboe equity index options, giving TT clients access to the rapidly growing equity options trading space. Slated for launch early in 2025, Cboe equity index options on the TT platform will enable the firm's broad client base of institutional market participants and professional traders to easily take positions in Cboe's popular index products, including its flagship S&P 500 Index (SPX), Cboe Volatility Index (VIX), Russell 2000 Index (RUT) and Mini SPX (XSP) options contracts.
/jlne.ws/4eFhYkP
DOJ Will Push Google to Sell Chrome to Break Search Monopoly; Antitrust officials also to seek data licensing, AI measures; Google says the proposals would harm consumers and developers
Leah Nylen and Josh Sisco - Bloomberg
Top Justice Department antitrust officials have decided to ask a judge to force Alphabet Inc.'s Google to sell off its Chrome browser in what would be a historic crackdown on one of the world's biggest tech companies. The department will ask the judge, who ruled in August that Google illegally monopolized the search market, to require measures related to artificial intelligence and its Android smartphone operating system, according to people familiar with the plans.
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CQG to Offer Day-One Connectivity to New MIAX Futures Exchange Matching Engine
CQG
CQG, a leading global provider of high-performance technology solutions for market makers, traders, brokers, commercial hedgers and exchanges, today announced that it will offer day-one access to MIAX Futures Exchange (MIAX Futures) - including new Bloomberg equity index futures contracts when listed - in connection with the planned launch of the exchange's new Onyx matching engine in June 2025. CQG made the announcement during FIA's Futures & Options Expo, the industry's most widely attended conference taking place this week in Chicago. The move will ensure that when Onyx goes live on MIAX Futures, CQG clients will be able to access MIAX Futures products on day one through CQG's front-end offerings and API connections as part of CQG's network of exchanges.
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Wall Street giants are loading up on MicroStrategy shares, as MSTR outperforms bitcoin year-to-date
Jason Shubnell - The Block
Business intelligence firm MicroStrategy had been considered a bitcoin proxy of sorts ever since it became the leading corporate holder of bitcoin in August 2020. The company now holds 331,200 BTC, worth roughly $29.7 billion, after a monster purchase of approximately $4.6 billion on Monday - its largest single-day set of transactions yet. "MSTR's ability to generate compounding yield on its bitcoin holdings, enabled by leverage accrued through the repeated tapping of the U.S. capital markets, differentiates its stock from alternative means of gaining exposure to bitcoin such as spot bitcoin ETFs," Benchmark analyst Mark Palmer wrote in a Nov. 18 note to clients. As retail traders continue gobbling up shares, how does the institutional side view MicroStrategy's stock (ticker: MSTR)? 13Fs can be a way to get a glimpse into how the largest portfolios and some of the most influential money managers play the market. It turns out that Wall Street's traditional titans do not want to miss out on the ride either.
/jlne.ws/48XOHR5
Wall Street's Top Cop Plans to Exit Before Trump Takes Power; Damian Williams plans to leave SDNY post before inauguration; Former regulator, lawyer Jay Clayton is Trump's pick for SDNY
Ava Benny-Morrison and Myles Miller - Bloomberg
The top US prosecutor in Manhattan has privately told people he'll step down before Donald Trump is inaugurated in January, marking the end of his tenure aggressively prosecuting crimes across Wall Street. Damian Williams, who has served as US Attorney for the Southern District of New York since 2021, has shared his plans with associates following Trump's election this month, according to people familiar with the conversations. Trump last week announced that he would tap Jay Clayton, who served as head of the Securities and Exchange Commission until 2020, to serve as Williams' successor.
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Commodities may add to Connect scheme as China signals support for Hong Kong's role
South China Morning Post
China's securities regulator has given his strongest endorsement yet to expand and add financial products to a transborder investment channel with Hong Kong, in a boost to the city's role as the mainland's offshore financial centre. Commodities may be added to the stocks, bonds, options and wealth management products that are currently tradeable in the so-called Connect scheme, which allows global investors and mainland capital to tap into each other's markets via Hong Kong, said Wu Qing, the chairman of the China Securities Regulatory Commission (CSRC). More options and futures will also be added to the pipeline, he said.
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Top global bankers gather in Hong Kong for summit as regulators promise more reforms
South China Morning Post
Dozens of the world's leading financiers have gathered in Hong Kong to take part in a summit attended by mainland Chinese officials, indicating a high level of support from the country's leaders for the city's development. Citi CEO Jane Fraser, Franklin Templeton CEO Jenny Johnson and State Street CEO Ronald O'Hanley were among the 300 bankers seen arriving on Monday evening at The Henderson, the venue of a high-profile banquet.
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Putin signs new Russian nuclear doctrine after Biden's arms decision for Ukraine
The Associated Press
President Vladimir Putin on Tuesday signed a revised nuclear doctrine declaring that a conventional attack on Russia by any nation that is supported by a nuclear power will be considered a joint attack on his country. Putin's endorsement of the new nuclear deterrent policy comes on the 1,000th day after he sent troops into Ukraine, on Feb. 24, 2022. It follows U.S. President Joe Biden's decision to let Ukraine strike targets inside Russia with U.S.-supplied longer-range missiles.
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Putin Lowers Russia's Threshold for Using Nuclear Arms; A decree signed by the Russian leader, though long-planned, came days after President Biden authorized the use of U.S.-supplied long-range missiles by Ukraine for strikes inside Russia.
Anton Troianovski - The New York Times
President Vladimir V. Putin on Tuesday lowered Russia's threshold for the use of nuclear weapons, a long-planned move whose timing appeared designed to show the Kremlin could respond aggressively to Ukrainian strikes on Russian territory with American long-range missiles. The decree signed by Mr. Putin implemented a revised version of Russia's nuclear doctrine that Mr. Putin described in televised remarks in September. But the timing was clearly meant to send a message, coming just two days after the news that President Biden had authorized the use of U.S.-supplied long-range missiles by Ukraine for strikes inside Russia.
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Ukraine Carries Out First Strike With US Missiles in Russia; Ukraine says it struck military warehouse in border region; Russia decree allows nuclear response to more types of attacks
Henry Meyer and Aliaksandr Kudrytski - Bloomberg
Ukrainian forces carried out their first strike on a border region in Russia using Western-supplied missiles as President Vladimir Putin approved an updated nuclear doctrine expanding the conditions for using atomic weapons. Ukraine deployed ATACMS missiles to strike a military facility in the western Bryansk region, Russia's Defense Ministry said, according to the Interfax news agency. It was the first known attack following the decision by President Joe Biden's administration to approve Kyiv's limited use of the weapons to hit targets inside Russia, two months before Donald Trump takes over promising to quickly end the war.
/jlne.ws/48URmLa
Why US Will Let Ukraine Strike Inside Russia With American Missiles
Daryna Krasnolutska and Alberto Nardelli - Bloomberg
Ukraine has been pleading with the US for months to let it use American-made weapons to hit military targets inside Russia beyond the border zone. Now, as he nears the end of his presidency, Joe Biden has relented and decided to lift some restrictions, according to people familiar with the decision. Under the new approach, Ukraine will get to use these weapons against targets in the Kursk region, a chunk of Russian territory that it occupied over the summer and is fighting to hold onto in the face of assaults by Russian and North Korean forces. The US reversal is a response to North Korea's decision to send more than 10,000 troops to Kursk as part of a deepening alliance with Moscow, as well as stepped-up Russian attacks on Ukraine's energy infrastructure, said the people with knowledge of the matter.
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'Push Russia harder' Zelensky urges allies on war's 1,000th day
Maia Davies - BBC News
President Zelensky addressed a special session of the European Parliament Ukraine's President Zelensky urged Europe to "push Russia harder" in a speech marking 1,000 days since Vladimir Putin launched a full-scale invasion of the country. "The more time he [Putin] has, the worse the conditions become," he told a special session of the European Parliament on Tuesday. Zelensky spoke amid speculation that Ukraine had for the first time used the US-supplied Atacams long range missile system to hit a target deep inside Russia, a day after Washington signalled its permission.
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G20 waters down support for Ukraine amid pressure for peace talks with Russia
Henry Foy and Michael Pooler in Rio de Janeiro - Financial Times
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Israel economy rebounds with 3.8% growth in Q3 amid wars with Hamas, Hezbollah
Steven Scheer - Reuters
Israel's economy grew more than expected in the third quarter, bouncing back somewhat from a weak spell since the start of war in Gaza with Palestinian Islamist group Hamas last October and another reason interest rates are unlikely to fall anytime soon. The Central Bureau of Statistics said in an initial estimate on Sunday that gross domestic product grew by an annualised 3.8% in the July to September period, above a 2.9% consensus in a Reuters poll. On a per capita basis, GDP gained 2.6% in the quarter.
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US sanctions group that builds illegal West Bank settlements, with close ties to Israeli government
Fatima Hussein and Julia Frankel - AP News
The U.S. on Monday imposed sanctions on organizations and firms involved in illegal settlement development in the occupied West Bank, including a well-established decades-old group that has close ties with Israeli leadership. Treasury sanctioned Amana, the largest organization involved in illegal settlement development in the West Bank, and its subsidiary Binyanei Bar Amana Ltd. Already sanctioned by Britain and Canada, Amana is one of the major funders and supporters of unauthorized settlements in the Israeli-occupied West Bank. Peace Now, a settlement tracking group, says its assets are valued at around 600 million Israeli shekels, or about $160 million, and that it has a yearly budget stretching into tens of millions of shekels.
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Nasdaq Poised to List Spot-Bitcoin ETF Options as Crypto Assets Rally; Bitcoin ETF options could trade as soon as Tuesday: Hennessy; BlackRock's IBIT has amassed nearly $30 billion since launch
Isabelle Lee and Katie Greifeld - Bloomberg
Nasdaq Inc. is planning to list options on BlackRock Inc.'s Bitcoin exchange-traded fund on Tuesday, allowing investors to use derivatives to bet on or against the world's largest digital asset. "Our intent at Nasdaq is to list and trade these options as early as tomorrow," Alison Hennessy, head of ETP listings at Nasdaq, said on Bloomberg's ETF IQ on Monday. "Getting these options listed on IBIT into the market I think will be very exciting for investors because that's really what we have heard from them."
/jlne.ws/48Yyknf
Cboe Conducts First European Retail Investor Survey; Indicates Strong Demand for European Equity Options and Trusted Financial Education
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today announced the results of its inaugural survey of European retail investors, conducted jointly by Cboe Europe Derivatives (CEDX), Cboe's pan-European equity derivatives marketplace, and The Options Institute, Cboe's education arm. Overall, the survey reveals a strong interest among European retail investors in utilising exchange-traded options for risk management along with a clear need for education, highlighting an opportunity for the industry to address this demand. CEDX has been working with The Options Institute on ways to bring more awareness of financial markets and derivatives products to the European retail investor community and together plan to offer a comprehensive suite of educational resources in Europe from early 2025.
/jlne.ws/4hWMFos
CME Group to Launch Mortgage Rate Futures in January 2025
CME Group
CME Group, the world's leading derivatives marketplace, today announced it will expand its interest rate complex with the addition of Mortgage Rate futures in January 2025, pending regulatory review.
/jlne.ws/48WwWS1
FTSE Russell launches the FTSE MIB ESG Risk-Adjusted Index
LSEG
FTSE Russell announces the launch of the FTSE MIB ESG Risk-Adjusted Index. The new FTSE MIB ESG Risk-Adjusted Index provides investors with improved index level ESG performance, adjusting ESG and carbon risks, active industry weights and maximum stock weight with a low tracking error.
/jlne.ws/3CJxNJK
Sunrise in Europe's Equity Primary Market; Sunrise's listing on SIX Swiss Exchange marks another milestone for the exchange, supporting the recovery of the Equity Primary Market in Europe.
SIX
On 15 November 2024, Sunrise, went public on SIX Swiss Exchange at an opening price of CHF 44.75 per Class A share. The listing of the leading challenger in the Swiss telecom market - a spin-off of Liberty Global - marks a notable year for Europe's Equity Primary Market.
/jlne.ws/4i6DhyG
SIX at Sibos 2024: A Summary; Last month, Sibos returned to Asia after a six year hiatus, with Beijing playing host this time round.
SIX
Operational Resilience and Harmonization. There were two top-billed speaking slots at Sibos featuring senior leaders from SIX. On Day 2 of Sibos, Jos Dijsselhof, SIX CEO, spoke about operational resilience and cyber-security on a panel comprised of leading financial market infrastructures (FMIs).
/jlne.ws/40NPhyO
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | FIA Tech Announces Launch of Sanctioned Securities
FIA Tech
FIA Tech, a leading technology provider in the futures industry, today announced the launch of Sanctioned Securities as part of its Databank Network suite of exchange-traded derivatives (ETD) reference data products. The new offering will be available as of December 2, 2024. Sanctioned Securities leverages global sanctions lists from key regulatory bodies in the US, UK, and EU to assist market participants in efficiently and accurately identify ETD products with underlying indices or single stocks that may contain sanctioned entities. By flagging these products, the service enables firms to quickly assess any potential compliance risks related to trading ETD products containing sanctions imposed by relevant authorities*.
/jlne.ws/3ZdIhKs
BMLL Expands Coverage with Addition of US Equity Options Data; Six years of nanosecond unconflated OPRA options data now available to market participants globally; The addition of OPRA options data follows BMLL's successful build-out of its equities coverage to 98% of the MSCI All-Country World Index; OPRA options data is immediately available via BMLL Data Lab and BMLL Data Feed, via AWS S3, and at multiple levels of conflation that suit clients' individual, specific requirements
BMLL via Traders Magazine
BMLL, the leading, independent provider of harmonised, historical Level 3, 2 and 1 data and analytics across global equity, ETFs and futures markets, today announced the addition of OPRA (Options Price Reporting Authority) data to its ever-expanding data coverage. Six years of historical, nanosecond unconflated OPRA options data is now available to market participants globally, in addition to conflated datasets, complementing existing US equity and futures datasets.
/jlne.ws/48X2JlQ
Fintech Firm Dave Hires New Marketing Chief Amid FTC False Advertising Allegations; The Los Angeles-based personal-finance company wants to expand consumers' perception of the brand
Mengqi Sun - The Wall Street Journal
Dave has named Kevin Frisch as its new chief marketing officer, filling a vacant post as the personal-finance company aims to broaden its brand and confronts allegations of deceptive advertising from the Federal Trade Commission. Frisch, who started at Dave this week, was most recently the vice president of marketing at business software company Intuit, where he oversaw the U.S. marketing for accounting software QuickBooks. He previously served as the chief marketing officer for on-demand dog walking company Wag! Group and led marketing and customer relationship management for ride-hailing company Uber Technologies' Rides and Eats business in the U.S. and Canada.
/jlne.ws/3V072qK
Google's Anthropic AI Deal Cleared by UK Antitrust Agency; Google pledged to invest $2 billion into the startup last year; Investment in Anthropic avoids full blown CMA investigation
Upmanyu Trivedi - Bloomberg
Google's partnership with AI firm Anthropic has avoided further scrutiny after the UK watchdog said it doesn't qualify for a full blown investigation under merger rules. Google has not gained "material influence" over Anthropic as a result of the deal, the Competition and Markets Authority said on Tuesday. The agency started looking at the partnership after Alphabet Inc.'s Google pledged to invest $2 billion into the startup last year. Prior to the financing, Google also signed a major cloud agreement with Anthropic.
/jlne.ws/3Zg1zil
Chinese tech groups build AI teams in Silicon Valley; Alibaba, ByteDance and Meituan seek to poach top talent from US rivals despite Washington's chip curbs
Eleanor Olcott in Shanghai - Financial Times
China's biggest technology groups are building artificial intelligence teams in Silicon Valley, seeking to hire top US talent despite Washington's efforts to curb the country's development of the cutting-edge technology. Alibaba, ByteDance and Meituan have been expanding their offices in California in recent months, seeking to poach staff from rival US groups who could help them make up ground in the race to profit from generative AI. The push comes despite US efforts to stymie their work. Chinese groups have been hit by a US ban on exports of the highest-end Nvidia AI chips, which are crucial for developing AI models.
/jlne.ws/40TWLQJ
US to Fund Chip 'Digital Twins' Center to Cut R&D Costs; New $1 billion center slated to win $285 million via Chips Act; Officials aim to reduce chip development times by a third
Mackenzie Hawkins - Bloomberg
The US plans to award $285 million to a new semiconductor research center focused on digital twin technology, with the goal of reducing the cost and time of chip development by roughly a third. The institute - a total $1 billion investment - will be headquartered in North Carolina and run by the Semiconductor Research Corp., an existing industry consortium. The Commerce Department announced Tuesday that it is entering negotiations with the SRC to provide funding from the 2022 Chips and Science Act.
/jlne.ws/48YfPzp
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| Cybersecurity | | Top stories for cybersecurity | Cyber risk can be modelled like credit risk, says Richmond Fed; US supervisors may begin to use historical datasets to assess risk at banks and system-wide
Menghan Xiao - Risk.net
After more than five years of research, a team at the Federal Reserve Bank of Richmond in the US thinks its ability to quantify cyber risk is on a similar level to the early days of credit risk modelling around 50 years ago.
/jlne.ws/3YZ3giy
DePaul University's 11th Annual Cyber Risk Conference : The Cyber Resilient Organization
DePaul Department of Finance and Real Estate
Date and time: Tuesday, December 3 · 9am - 5pm CST; Location: DePaul University Loop Campus, DePaul Center, 1 E Jackson Blvd 8th floor, Conference Center Room 8005 Chicago, IL 60604
/jlne.ws/48ZlpRT
We Can't Give Up Paper Checks, and That's a Gold Mine for Scammers; Suspected fraudsters congregate anonymously on message boards and social media, figuring out which banks to target with altered checks
Oyin Adedoyin and Justin Baer - The Wall Street Journal
On Telegram message boards, hundreds of images show how stealing checks and then depositing them in bank accounts has become a big business-and a major headache for the financial system. Americans can't quit paper checks. Fraudsters are cashing in. A message appeared this month on an app where people often congregate to trade tips on committing check fraud. It named some of the largest banks: "TD. PNC. CITI. NOWWWWW." That same week, anonymous posters sent photos to the same app showing ATM deposits from banks including PNC. One slip showed a deposited check for $47,351.04.
/jlne.ws/3OeIpCX
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| Cryptocurrencies | | Top stories for cryptocurrencies | Donald Trump's social media company in talks to buy Bakkt, in latest twist for ICE-founded crypto platform
Daniel Kuhn - The Block
Donald Trump's social media company Truth Social is reportedly in "advanced talks" to acquire crypto platform Bakkt, according to the Financial Times, which cited two people familiar with the matter. If closed, the all-stock deal would see the president-elect's Trump Media and Technology Group, which Trump maintains a 53% stake in, purchase the company from the Intercontinental Exchange, the operator of the New York Stock Exchange. The move represents Trump's growing involvement with the crypto industry and the latest twist for the once buzzy Atlanta-based Bakkt, which has gone through multiple reinventions since it was founded in 2018.
/jlne.ws/3AQB4qf
Bitcoin Gets Another Fillip From US's Growing Embrace of Crypto; Potential Trump Media crypto deal bolsters sentiment; Nasdaq to list options on world's largest Bitcoin fund
Sunil Jagtiani - Bloomberg
Bitcoin is back in the vicinity of an all-time peak, supported by a series of developments highlighting the deepening embrace of the digital-asset industry in the US under crypto cheerleader Donald Trump. At the top of the tape was the revelation that the president-elect's Trump Media & Technology Group Corp. is in talks to buy digital-asset marketplace Bakkt Holdings Inc., which sparked a surge in the shares of both companies.
/jlne.ws/4eA4kPN
How hedge funds and big banks traded IBIT and other Bitcoin ETFs in Q3
Jason Shubnell - The Block
Institutional investors are reshaping their portfolios as Bitcoin ETFs continue to gain traction on Wall Street. The latest 13F filings reveal how hedge funds and big banks adjusted their positions in major Bitcoin ETFs during Q3, highlighting shifting strategies and growing adoption of crypto-backed assets. Each quarter, institutional investment managers with at least $100 million in equity assets under management file 13F reports with the U.S. Securities and Exchange Commission. The filings, which are required within 45 days of the end of each quarter, provide a view of the manager's stock holdings, although they do not disclose any short positions.
/jlne.ws/48Xpara
MARA announces $700 million convertible notes sale, intention to acquire more bitcoin
Adam James - The Block
MARA Holdings announced its intention to offer $700 million of convertible senior notes in a private offering to qualified institutional buyers. The company plans to use the net proceeds to repurchase a portion of its existing convertible notes and acquire additional bitcoin. The senior notes intended to be offered would be due 2030, while the notes it would buy back with proceeds would be due 2026, according to a press release.
/jlne.ws/4hXhvwY
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| Politics | | An overview of politics as it relates to the financial markets | Trump Confirms He Plans to Use Military for Mass Deportations; Trump wrote 'TRUE' in response to post about using military; Largest deportation faces funding, logistical, legal obstacles
Stephanie Lai - Bloomberg
President-elect Donald Trump confirmed his intention to use the US military to carry out what he has vowed will be the largest mass deportation in US history. Trump wrote "TRUE!!!" on his Truth Social network early Monday, replying to a post from Tom Fitton, the president of conservative legal group Judicial Watch, who said that Trump was reportedly "prepared to declare a national emergency and will use military assets to reverse the Biden invasion through a mass deportation program."
/jlne.ws/4fV4O4c
Trump's demolition of the US state; One irony of the president-elect's campaign of destruction is that the government is in dire need of reform
Edward Luce - Financial Times (opinion)
It is time to study Caligula. That most notorious of Roman emperors killed what was left of the republic and centralised authority in himself. Donald Trump does not need to make his horse a senator; it will be enough to keep appointing charlatans to America's great offices of state. Rome was not destroyed by outsiders. Its demolition was the work of barbarians from within. The question of whether Trump consciously wants to destroy the US federal government is irrelevant. You measure a leader by his actions not by his heart. To judge from what Trump has done within a fortnight of winning the presidency, his path is destruction. Other than a handful of moderate Republican senators, who may or may not have the guts to reject some of his nominees, there is little standing in his way.
/jlne.ws/3APSiUM
Trump's attack on the enemy within will delight America's real foes; The president-elect is threatening to gut the institutions that make America great
Gideon Rachman - Financial Times
We all know the slogan. But Donald Trump will not make America great again by waging war on his domestic enemies. Instead Trump's vengeance campaign threatens the real foundations of American greatness. The American military, the country's leading universities, the Federal Reserve, the justice system, the free press, the scientific establishment, even the health of American citizens are all at risk. The president-elect has nominated vengeful crackpots to key positions and promised to let people like Robert F Kennedy Jr "go wild".
/jlne.ws/3OguWul
Ken Griffin Says He's 'Very Anxious' About Trump's Tariff Policy; Hedge fund founder said US will 'return' to creating jobs; Griffin said talent at Citadel is his single-best investment
Nishant Kumar - Bloomberg
Hedge-fund titan Ken Griffin said he's anxious about Donald Trump's potential tariff policies, but that the US economy is going back to "the business of business" now that he's returning to the White House. Speaking at the Oxford Union in the UK on Monday, the Citadel founder called tariffs - a central tenet of Trump's economic agenda - a "long, slippery slope" that can be profitable in the short run but damaging to US companies' ability to compete globally in the long run. "I am very anxious about the president's willingness to engage in tariffs as a matter of trade policy," Griffin said.
/jlne.ws/3CzCNkg
Lawmakers urge Treasury crack down on crypto mixers amid Tornado Cash sanctions
Sarah Wynn - The Block
U.S. lawmakers pressed the Treasury Department to do their part to look into illicit finance through crypto mixing services, particularly Tornado Cash. Democrats Rep. Sean Casten of Illinois led the letter sent to Treasury last week alongside Reps. Stephen Lynch, Brad Sherman, Bill Foster, David Scott, Emanuel Cleaver and Joyce Beatty. Casten, Sherman, Foster and Cleaver in particular have been critical of crypto and its use by bad actors.
/jlne.ws/4fyrzLg
Business owners warn Donald Trump's deportation plan could shut them down; Vow to round up undocumented workers risks labour shortages and higher prices
Taylor Nicole Rogers - Financial Times
/jlne.ws/4fAfzJj
German Defense Chief Sees Baltic Cable Breaches as Sabotage; Two subsea data links were damaged in Baltic Sea since weekend; Germany's Pistorius cites Russian hybrid, military threat
Iain Rogers and Leo Laikola - Bloomberg
/jlne.ws/3YWWOIZ
****Here is the Financial Times' coverage of the story.
China Policymakers Pledge to Continue With Financial Opening; HK holds third annual summit with global bank CEOs, regulators; Summit comes after China rolled out stimulus to boost economy
Bloomberg News
/jlne.ws/4eC6AWR
Japan and China Dumped US Treasuries Before Trump's Election Win; Investors from Japan offloaded record amount of US debt in 3Q; Both nations may continue to sell US debt: AT Global Markets
Masaki Kondo and Ruth Carson - Bloomberg
/jlne.ws/3ZdXT0v
China ETF Outflows Increase as Traders Flee on Trump Tariff Risk; FXI sees largest weekly outflow on record of $984 million; Investors await clarity on Trump's tariffs, China stimulus
Leda Alvim - Bloomberg
/jlne.ws/3YYcFqV
How China's National Security Law Changed Hong Kong
Jenni Marsh - Bloomberg
/jlne.ws/3Zc8fh8
Daim Zainuddin, Mahathir confidante who navigated financial crises; Malaysia's former financial minister dies aged 86 with graft cases looming
CK Tan - Nikkei
/jlne.ws/4hTZ4cy
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| Regulation & Enforcement | | Stories about regulation and the law. | BIT Mining Pays SEC $4 Million Over Japanese Bribe Allegations
Nicola M. White - Bloomberg
A crypto miner agreed to pay a $4 million penalty to settle US Securities and Exchange Commission allegations that it engaged in a scheme to bribe Japanese officials, the agency said Monday. BIT Mining Ltd., formerly known as 500.com Limited, between 2017 and 2019 paid $2.5 million in cash bribes and gifts, including to members of the Japanese parliament, to try to win a bid to open a casino resort in Japan, the SEC said.
/jlne.ws/4eSx3Qd
Trafigura Paid Bribes Via 'Mr. Non-Compliant,' Swiss Prosecutors Say; Company accused of failing to prevent millions in bribes; Trial set to begin Dec. 2 at Switzerland's top criminal court
Hugo Miller, Jack Farchy, and Archie Hunter - Bloomberg
Trafigura Group was accused by Swiss prosecutors of channeling bribes to an Angolan official through a network of former employees, including one nicknamed "Mr. Non-Compliant" by the company's late founder. The trading house heads to court Dec. 2 on bribery charges, alongside former senior executive Mike Wainwright, a Swiss middleman who can only be named as P., and a senior Angolan public official Paulo Gouveia Junior. A 150-page indictment released on Monday detailed how the bribes were allegedly paid and for the first time claimed that Trafigura's late founder and Chief Executive Officer Claude Dauphin was a central participant in the scheme.
/jlne.ws/48ZcSyn
Hong Kong Jails Benny Tai for 10 Years in Longest NSL Sentence; Ex-youth activist Joshua Wong gets four years and eight months; Sentences likely to deter dissent, attract Western criticism
Lorretta Chen and Kiuyan Wong - Bloomberg
A Hong Kong court sentenced former democracy advocate Benny Tai to 10 years in prison, the longest sentence ever meted out using a China-imposed security law, in a move likely to further deter dissent in the finance hub and attract condemnation from Western governments. Former youth activist Joshua Wong got four years and eight months among sentences handed out to 45 defendants on Tuesday, nearly four years after they were arrested in a sweeping police campaign that scooped up scores of opposition figures. The US has called the case "politically motivated" and vowed to put visa curbs on officials responsible for carrying out Beijing's national security crackdown.
/jlne.ws/4hS9ppz
Singapore oil trader sentenced to 17 years for 'cheating' HSBC over $112mn; Octogenarian Lim Oon Kuin handed long jail term as 'deterrent' in city-state's fight against commodity trading corruption
Owen Walker - Financial Times
An octogenarian oil trader has been given a 17-and-a-half-year jail sentence in Singapore for defrauding HSBC, in a long-running case that sent shockwaves through the city-state's commodity trading sector. Lim Oon Kuin, known as OK Lim and once one of Singapore's richest men, was sentenced on Monday after being convicted in May of "cheating" HSBC and abetting forgery. The 82-year-old founder of Hin Leong Trading was accused of encouraging a company executive to forge documents that tricked the bank into disbursing nearly $112mn.
/jlne.ws/4ezVFwJ
SEC Charges BIT Mining with FCPA Violations in Connection with Bribery Scheme to Influence Members of Japanese Parliament; Company, formerly known as 500.com, sought to open casino in Japan
SEC
The Securities and Exchange Commission today announced that BIT Mining Ltd., formerly known as 500.com Limited, agreed to pay a $4 million civil penalty to resolve charges that it violated the Foreign Corrupt Practices Act (FCPA) from 2017 to 2019 by engaging in a widespread bribery scheme to influence numerous foreign officials, including members of Japan's parliament, in efforts to establish an integrated resort casino in Japan. 500.com was an online sports lottery service provider headquartered in Shenzhen, China, whose shares traded on the New York Stock Exchange under the symbol "WBAI."
/jlne.ws/3V0B4ux
Embracing Risk: Remarks at the Ethiopian Capital Market Authority Industry Day
Commissioner Hester M. Peirce - SEC
The SEC turned ninety this year, and those decades of experience have taught us a lot about regulating capital markets. We are happy to share those lessons with you, even as we seek to learn from your experiences. I, for example, hope to learn whether the ECMA's "Capital Market Regulatory Sandbox"[1] could serve as a model for regulators seeking to foster creative disruption and innovation. Creative ideas for new processes and products need space to grow and stretch their legs, but when faced by a thicket of existing regulations blocking their path, many of these ideas never get out of the starting blocks.
/jlne.ws/4fUtXMs
SEC Obtains Final Judgment Against Defendant for Receiving Kickbacks in Bribery Scheme
SEC
On November 15, 2024, the Securities and Exchange Commission obtained a final judgment against defendant Richard Brown for accepting kickbacks in an alleged scheme to defraud investors. The SEC's complaint, filed in the Eastern District of New York on October 4, 2019, alleged that from approximately July 2014 through October 2015, Brown, then a registered stockbroker, accepted cash bribes from the CEO of Nxt-ID, Inc. and another defendant to purchase more than $750,000 worth of Nxt-ID, Inc. common stock in his customers' accounts. Brown allegedly made the purchases without informing his customers that he was receiving kickbacks in connection with the purchases.
/jlne.ws/3AJI9c9
ASIC cancels licence of DOD Bookkeeping Pty Ltd
ASIC
ASIC has cancelled the Australian financial services licence (AFS licence) of DOD Bookkeeping Pty Ltd (in liquidation) (DOD) following a payment of compensation by the Compensation Scheme of Last Resort (CSLR).
/jlne.ws/4fE88Rp
Kristofer Ridgway charged with dishonest conduct
ASIC
Former Brisbane-based financial adviser Kristofer Ridgway has been charged with 26 counts of dishonest conduct in relation to the provision of financial services, contrary to sections 1041G and 1311(1) of the Corporations Act 2001 (Cth). It is alleged that Mr Ridgway facilitated investments on behalf of his clients in Steppes Alternative Asset Management and Trinus Impact Capital from 2016 to 2020, failing to disclose to his clients that he was entitled to, and would receive, substantial commission payments.
/jlne.ws/3YO15yo
Transition risk losses alone unlikely to threaten EU financial stability, "Fit-For-55" climate stress test shows - Press Release
ESMA
/jlne.ws/3OhbOMO
A revision of our market cleanliness statistic methodology
FCA
The FCA is improving the accuracy of the market cleanliness statistic (MCS), used in its annual report to measure insider trading. The MCS is based on abnormal stock price movements before takeover offer announcements.
/jlne.ws/3ZeSsy4
SFC withdraws Restriction Notice to broker over client's suspected insider dealing after obtaining court order to freeze assets
SFC
The Securities and Futures Commission (SFC) has withdrawn the Restriction Notice prohibiting Bright Smart Securities International (H.K.) Limited (Bright Smart) from disposing of or dealing with proceeds or assets in the account of Mr Barry Kwok Sze Lok in connection with suspected insider dealing in the shares of I.T Limited (I.T) (Notes 1 and 2). The withdrawal of the Restriction Notice imposed on Bright Smart in August 2022 came after the SFC obtained court orders to prevent dissipation of assets in relation to an investigation into suspected insider dealing in I.T. shares by Kwok and his associate Ms Tsang Ching Yi.
/jlne.ws/4hWv7IX
SFC and NFRA top management met in Hong Kong
SFC
The Securities and Futures Commission's (SFC) Chairman Dr Kelvin Wong and Chief Executive Officer Ms Julia Leung held a high-level meeting with the Minister of the National Financial Regulatory Administration (NFRA) Mr Li Yunze in Hong Kong yesterday. The two sides gave an update on the current landscape of the Mainland and Hong Kong financial markets, respectively. They also exchanged views on various topics including strengthening cross-boundary regulatory cooperation, as well as consolidating and enhancing Hong Kong's status as an international financial centre.
/jlne.ws/40XlSSL
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | S&P Sees Some Signs of a US Credit Bubble as Spreads Tighten; Tight spreads could be hiding borrowing costs, debt loads; Corporate earnings, economic growth offer signs of strength
Will Kubzansky - Bloomberg
Tight spreads may be obscuring corporations' high borrowing costs and strained debt sustainability, marking signs of a possible bubble in US credit, according to a report from S&P Global Ratings. Investment-grade spreads, at 78 basis points as of Friday, are hovering around their lowest point since 1998, according to data compiled by Bloomberg. High-yield spreads recently approached 2007 levels before rising again to 266 basis points on Friday.
/jlne.ws/3OdV7BR
ADM Reviews Earnings in Latest Step to Fix Accounting Issues
Gerson Freitas Jr and Tarso Veloso - Bloomberg
Archer-Daniels-Midland Co. restated previous earnings, after earlier this month identifying new accounting errors, in a key step to regain investor confidence. Consolidated results for 2023 and the first two quarters of this year haven't been impacted by the review, the Chicago-based trader said in a statement. The restatements, which ADM said would be necessary when the accounting errors were announced, corrected figures for transactions within and between ADM's businesses.
/jlne.ws/4eC6HSh
Credit Is Harder to Access as Rejection Rates Rise, Fed Survey Shows; Rejection rates for auto, home refinancing rise to series high; Credit demand largely stable this year, New York Fed data show
Jonnelle Marte - Bloomberg
US consumers had a tougher time accessing credit this year, with applications for auto loans and mortgage refinancing being turned down at the highest rates in more than a decade. Despite largely stable demand, applications for various forms of credit were increasingly rejected in 2024, according to a survey released Monday by the Federal Reserve Bank of New York. Americans also became more pessimistic about their ability to tap credit in the future.
/jlne.ws/4eCpOLK
Gold Is at the Mercy of Trump, China and King Dollar; The yellow metal has declined from a record as the economic backdrop has changed.
Marcus Ashworth - Bloomberg
Typically, the best cure for high prices is simply higher prices, a lesson gold is learning the hard way. Since the prospect of a second Donald Trump presidency became a reality, the shiny pet rock has been hit by a double whammy. A decline of $220 per troy ounce, or 8%, since the end of October may seem minor in the context of it still being up more than 25% this year. But the loss of momentum is significant - gold no longer just goes higher and higher. Whether the rally can resume remains very much in the balance.
/jlne.ws/4hVmSN9
Trump's Win Piles on the Pain for European Investors; European stocks and the euro have all slumped since the US election as investors bet Trump's policies will hit the continent hard.
Michael Msika and Alice Atkins - Bloomberg
A dormant stock market, brittle currency, crisis-ridden political system, stagnant economy - so was the landscape in Europe even before Donald Trump won election in the US. Now, the continent faces new trade tariffs against its biggest companies and investment outflows as Trump's plans to cut taxes and gut regulation make US stocks more attractive. Add to that the growing angst around Germany's upcoming snap election and even the most optimistic investors are struggling to stay upbeat.
/jlne.ws/4hYmBcG
European Union Targets 7 Billion Euros for Syndicated Bond Offering; Investors have already put in 125 billion Euros of orders; This is likely the final EU debt syndication of the quarter
James Hirai - Bloomberg
/jlne.ws/4hWUtqk
How to deal with noisy markets;Some lessons for those investors tempted to chase the Trump trades
Robert Buckland - Financial Times
/jlne.ws/3OdFLh1
Pimco is back in beast mode (for now at least)
Robin Wigglesworth - Financial Times
/jlne.ws/3ZbVK5b
Nasdaq 100 Halts Five-Day Slide as Treasuries Gain: Markets Wrap
Rita Nazareth - Bloomberg
/jlne.ws/48Tm5sh
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Vanguard says shareholders can vote for profits over ESG issues; Asset manager gives investors greater say on proxy votes as it tries to navigate backlash to 'woke' policies
Brooke Masters - Financial Times
Vanguard is giving retail shareholders the chance to vote in favour of putting profits above all else as it doubles the size of its experiment with letting more investors have a say on proxy votes. Nearly 4mn people controlling up to $250bn in shares in US companies will now be able to choose one of five options, which also include letting Vanguard make the decision, voting with management, prioritising environmental, social and governance factors or in effect voting "present".
/jlne.ws/3Od1Ufn
G20 failure to explicitly back fossil fuel transition upsets COP29 talks; Fears rise of stalemate on climate action in wake of Trump election victory
Attracta Mooney - Financial Times
The G20 failure to make a direct mention of the need to transition away from fossil fuels in its leaders' statement in Rio has escalated fears among key negotiators at the UN COP29 summit in Baku that Donald Trump's US election victory has put the brakes on climate action. Almost 200 countries agreed to transition away from fossil fuels in their energy systems by 2050 at last year's UN COP28 summit in Dubai, with the G7 group of major economies reiterating this pledge in their leaders communique earlier this year.
/jlne.ws/3UUn2La
The 1.5C Climate Goal Is Dead. Why Is COP29 Still Talking About It?; Politicians and green advocates want to keep the focus on limiting global warming to 1.5C, even though scientists say the planet is already on track to soon breach the target.
Zahra Hirji and John Ainger - Bloomberg
The battle to keep global warming within 1.5 degrees Celsius has been a rallying cry for climate action for nearly a decade. Now, with the planet almost certain to blow past the target, diplomats and campaigners at the COP29 summit have found themselves awkwardly clinging to a goal that no longer makes sense.
/jlne.ws/4fT0p1D
How development banks are failing to attract enough private money to climate fight
Virginia Furness, Karin Strohecker and Simon Jessop - Reuters
As officials from around the world strive this week to reach a deal on funding for poorer countries to tackle climate change, investment manager Rob Drijkoningen is the sort of person they're hoping will help get them there. Drijkoningen is head of emerging market debt at U.S. asset manager Neuberger Berman, which holds $27 billion in sovereign and corporate debt from developing countries. He should be a natural partner for multilateral development banks (MDBs) looking to find private sector investors for projects to slow climate change or cope with its effects.
/jlne.ws/3OgyIUx
Oil Glut Set to Thwart Trump's Call to 'Frack, Frack, Frack'; Analysts see 2025 US oil growth as smallest since pandemic; Despite deceleration, production is headed to a new record
Lucia Kassai, Kevin Crowley, and David Wethe - Bloomberg
President-elect Donald Trump's vows to "frack, frack, frack" are about to collide with a global crude glut that's set to, finally, temper record shale production. Trump has said he'll push America's shale companies to ramp up output - telling supporters pump prices would fall even if it meant producers "drill themselves out of business" - but his second term follows two straight years of record US output. Against that backdrop, analysts and traders surveyed by Bloomberg see the US adding just 251,000 barrels a day from the end of this year through 2025, the slowest pace since the pandemic-driven drop in 2020.
/jlne.ws/3UVcqeQ
Climate Finance Is Failing Farmers Punished by Global Warming; Less than 3% of all public climate finance goes to food systems, despite global warming's catastrophic impact on agriculture.
Agnieszka de Sousa - Bloomberg
Filipino farmer Esther Penunia has seen her home country ravaged by heat, floods and typhoons just this past year. She saw farmlands in water up to her chest and crops destroyed. "Climate change is real," she said from the United Nations COP29 talks in Baku, Azerbaijan. "It's affecting our crops, our yields and therefore our incomes. Everyone is really getting hurt."
/jlne.ws/40S0sX4
France Should End EDF's Regulated Power Prices, Watchdog Says; Most households still rely on state-owned firm for electricity; The energy regulator calls for keeping regulated tariffs
Francois De Beaupuy - Bloomberg
/jlne.ws/3UYX5tA
Zimbabwe Power Tariff Hike Sparks 3,000 MW of Energy Investments; Power utility sees new capacity ending power cuts by end 2025; Jindal, PPC, Afrochine Smelting among those adding generation
Ray Ndlovu - Bloomberg
/jlne.ws/3OgKazF
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | FXGO eyes platform upgrades with new fee model; Bloomberg's brokerage charges will fund upcoming automation and TCA projects
Joe Parsons - Risk.net
Bloomberg's electronic foreign exchange trading venue, FXGO, is planning to use revenues from its upcoming brokerage fee model to invest in new features for buy-side users and market-makers. From April next year, Bloomberg will charge a new base fee rate - before incentives and discounts - of $2.75 per million for spot FX trades, $2.90 per million for one-month non-deliverable forwards, and a maximum of $8.75 per million for longer tenors.
/jlne.ws/3ZeooTx
Morgan Stanley, Goldman Call for Greater China Transparency; Morgan Stanley CEO sees 'green shoots' in China economy; Goldman's Solomon says China needs improvement in consumption
Bloomberg News
The top bosses from Goldman Sachs Group Inc. and Morgan Stanley called for greater transparency from China and for eased movement of capital to restore the appetite of global investors. While acknowledging there were some "green shoots" now being seen in the Chinese economy, Morgan Stanley Chief Executive Officer Ted Pick said there was still need for greater transparency in Chinese regulations and policy making.
/jlne.ws/4fDPCc4
Goldman Sachs chief warns global investors are staying on the 'sidelines' in China; David Solomon says there are concerns about cashing out of investments in the country
Kaye Wiggins, Cheng Leng and Arjun Neil Alim - Financial Times
Goldman Sachs' chief executive has warned that global investors are still "predominantly on the sidelines" over deploying capital in China because of weak consumer confidence and difficulties getting money out of the country. David Solomon said investors "continue to be concerned" about cashing out of investments in the world's second-largest economy.
/jlne.ws/3ZczRmk
Norway's Wealth Fund Merges Real Assets With Equities Unit
Ott Ummelas and Heidi Taksdal Skjeseth - Bloomberg
Norway's $1.7 trillion wealth fund is merging its real assets business area with equities from January to strengthen the management of both asset classes. The adjustment will seek to bring together people with complementary expertise, Norges Bank Investment Management said in a statement Monday. The fund's investment strategy across any of the asset classes will be unaffected and it plans to remain "an active real estate investor," NBIM said.
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Global Funds Are Piling Record Money Into Indian Share Offerings; Foreign funds buy new shares worth $11.5 billion this year; New share offerings are generating higher returns: Choksey
Chiranjivi Chakraborty - Bloomberg
Foreign investors are pulling record sums from Indian shares since October and piling into initial public offerings in search for better returns. Their primary market purchases, including IPOs and preferential share sales, hit $11.5 billion this year, surpassing the previous record set in 2021, according to data published by Central Depository Services Ltd. In contrast, global funds have sold more than $13 billion on the exchanges, helping send the main NSE Nifty 50 index into correction.
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Once Worth $30 Billion, Hwang Says He's Just a Millionaire Now; Archegos founder estimates current net worth at $55 million; US wants 21 years, $10 billion restitution for Hwang sentence
Chris Dolmetsch - Bloomberg
Archegos Capital Management founder Bill Hwang, whose family office's soaring portfolio briefly made him worth more than $30 billion, said he now only has around $55 million. Hwang, who faces sentencing Wednesday in New York for fraud and market manipulation tied to Archegos' spectacular 2021 collapse, estimated his current wealth in a Monday court filing. His lawyers are pushing back against prosecutors' request that Hwang be forced to pay $10 billion to compensate his victims, on top of spending 21 years in prison.
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Fidelity Fund That Rode China's Epic Rally Is Back Buying Stocks; Fund likes onshore, mid-cap Chinese stocks: Efstathopoulos; The money manager took profit from late-September rally
Ruth Carson - Bloomberg
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New Abrdn chief overhauls leadership amid lacklustre performance; Jason Windsor was appointed to the top job at a difficult time for the UK asset manager
Emma Dunkley - Financial Times
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | Fund managers prove slow to address gender imbalance; Studies indicate more diverse teams deliver better investor returns
Chris Newlands - Financial Times
For an industry judged on its performance figures, investment management is proving a laggard when it comes to the number of female fund managers it employs. Latest global statistics say just 12.5 per cent of portfolio managers - the front line of investment decision-making - are women. "What's even more surprising is that this number has declined over the past decade and appears to be stagnating rather than progressing at a significant pace of change," says the Diversity Project - an industry body set up to encourage more women and ethnic minorities into asset management.
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| Wellness Exchange | | An Exchange of Health and Wellness Information | RFK Jr. Would Put the Economy at Risk, Too; The HHS secretary would wield a dangerous amount of influence over a major sector that is a source of US economic prosperity.
Tyler Cowen - Bloomberg Opinion
President-elect Donald Trump's announcement of Robert F. Kennedy Jr. as his choice to be secretary of Health and Human Services has provoked a lot of objections, many of them explaining how he would be a danger to both scientific progress and public health. But too little has been said about the economic damage he could do as leader of one of the most significant branches of the administrative state. Spending on health care constitutes more than 17% of the US economy. The HHS secretary oversees reimbursement rates for Medicare, which accounts for about 14% of the entire federal budget.
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | What's the 'Korea Discount' and Why Is It a Problem?
Youkyung Lee and Shinhye Kang - Bloomberg
Global investors are watching if South Korea can make company boards more accountable to stockholders. Shares in the country tend to trade at lower valuations than their peers overseas, with analysts saying poor corporate governance is one factor behind what is known as the "Korea Discount." President Yoon Suk Yeol has made fixing it a priority as he seeks to win favor with a growing base of retail investors. He's not the first leader to try, and he'll need to overcome powerful business interests that have benefited from the status quo.
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