| November 10, 2022 | "Irreverent, but never irrelevant" | | |  | John Lothian
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Hits & Takes
John Lothian & JLN Staff
What was I thinking, going to Florida during hurricane season? Hurricane Nicole is battering the state with rain as a tropical storm after hitting near Vero Beach as a Category 1 hurricane. I am over on the gulf side of the state in Sarasota, but we are being buffeted by gusts of wind and sheets of rain. The power is blinking on and off from time to time.
My wife Cheryl and I are staying in my mom's mobile home, which is a tin can held down by hurricane straps. I already had some roof repairs done on the mobile from the previous hurricane, Ian.
There is an upside to having been in Sarasota, though. It turns out that Richard Sandor and his lovely wife Ellen have a place here and are in residence. Doc will not be able to be in Chicago for FIA EXPO and the celebration of 50 years of financial futures next week to make some comments after a video plays that John Lothian Productions put together. However, I was able to venture to his lovely Sarasota apartment engulfed in a subset of his world class photography and art collection to video him giving some comments to play at EXPO. Call it Sarasota serendipity.
The hurricane has changed my travel plans. I was planning on leaving today, but with 30-mile-an-hour winds or more and driving rain across the state, Friday is now our day of departure to drive back. That gives me one day for any travel problems or to get ready to go to FIA EXPO.
Bryce Elder of the Financial Times has penned a piece titled "Untangling the knotty empire of Bankman-Fried and FTX" that includes a chart of the various FTX enterprises and how they are all connected. Needless to say you should have your coffee and be relaxed before taking this in.
It is not the title of the FT's Robin Wigglesworth's piece that is clever. It is simply JPM: 'A new wave of crypto deleveraging underway'. Rather, it is the sub headline, "Crypto is FTX'ed."
The obituary for Robert "Bobby" Edward Goldberg, 1942-2022, has been posted to the legacy.com site. I had a great conversation with Doc Sandor about Bobby and David Goldberg yesterday and will be able to share soon. Bobby and David were involved in helping create LIFFE, Doc said. This story will be added to our Game Changers Part 2 video about The History of Financial Futures.
The Wall Street Journal says Goldman Sachs' 80 new partners are the happiest people on Wall Street today. That may be because they became Goldman partners, or it may be because they ignored the lure of the crypto world to stay the course at Goldman. The good news is that this is the biggest partner class under Goldman CEO David Solomon and Goldman's most diverse partner class ever in its history, with more women and more Black employees than ever.
Today we are publishing a piece by marketing consultant Thom Lant titled, "The long and short of marketing in the markets." This is aimed at the marketing crowd ahead of FIA EXPO. It is not necessarily for the everyday reader or trader, but Thom does make some great comparisons between the markets and marketing, including the long and short of marketing.
Episode 328 of Inside the Ice House was an interview with NYSE Institute President John Tuttle on Championing Free Markets and Listed Companies.
The CME Group's Owain Johnson is also at COP27, joining some industry colleagues from ICE mentioned earlier this week in JLN. Johnson is a managing director, global head of research and product development at the CME Group.
I have a correction from yesterday's JLN, pointed out by Jeremy Grant. I referred to Bernie Dan as the chairman of the CBOT. He was the CEO of the CBOT. My apologies, especially to Charlie Carey who probably said, "What the heck?" when he read that.
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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Eurex is hosting a Virtual Focus Day Sustainability on November 24, 2022. Focus Day looks at carbon markets, sustainable financial and energy derivatives, sustainable transition and climate targets. Learn more and register here.~SAED
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The long and short of marketing in the markets
by Thom Lant
You could be forgiven for thinking that the importance of long and short in markets is only related to the positions you or your clients hold, or your tech that facilitates, clears, monitors and informs trading activity. However, there is an equally important long and short in marketing in the markets.
If we were to take a look under the bonnet of your company, I am pretty sure, 80-90% sure in fact, that you are mostly short marketing. You do a lot of product marketing, pumping out content like an HFT mostly through digital, run campaigns over a few months, a sprinkle of events, and acquiring the best giveaways, or I believe my American cousins call them premiums. Oh, the time spent discussing those for FIA EXPO!
Read more »
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MWE SHORT: Drew Shields - Next-Generation Product Development
JohnLothianNews.com
As chief technology officer at Trading Technologies, Drew Shields has been instrumental in the implementation of the software vendor's new top-to-bottom makeover. The new architecture required lots of technical talent, to be sure, but it also required two additional attributes - hunger, and the ability to challenge the status quo.
Watch the video »
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Why Did FTX Pause Withdrawals if It Wasn't Trading Customer Funds?
David Z. Morris - CoinDesk
Yesterday was one of the most head-spinning days in the entire history of the cryptocurrency industry, with Changpeng Zhao's Binance signing a letter of intent to acquire, and effectively bail out, Sam Bankman-Fried's FTX exchange. FTX had been considered a huge success story since its founding in 2019, and founder Bankman-Fried had become a respected figurehead.
/jlne.ws/3G1FQkX
***** This is giving me Refco flashbacks. I really did not need that.~JJL
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FTX Hurtles Toward Bankruptcy With $8 Billion Hole, US Probe
Gillian Tan - Bloomberg
The crisis engulfing Sam Bankman-Fried's FTX.com is rapidly worsening, with the onetime crypto wunderkind warning of bankruptcy if his firm can't secure funds to cover a shortfall of as much as $8 billion. Bankman-Fried informed investors of the gap on Wednesday, shortly before rival exchange Binance abruptly scrapped a takeover offer. He said FTX.com needed $4 billion to remain solvent and is attempting to raise rescue financing in the form of debt, equity, or a combination of the two, according to a person with direct knowledge of the matter.
/jlne.ws/3A4OH1v
****** The rule of holes. When you find yourself in a hole, stop digging.~JJL
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With FTX Bloodied, Rival in US Regulatory Fight Adds Another Knife
Jesse Hamilton - CoinDesk
An old-guard rival of FTX from the derivatives markets sought to drive a stake through its heart as the crypto company struggled to save itself from financial disaster on Wednesday. A subsidiary of Cboe Global Markets Inc. sent a letter on Wednesday to its customers - addressed as the "crypto community" - reminding them of its own "customer protection policies, the benefits of regulatory oversight and the value of including intermediaries in our marketplace.Cboe Digital has strict policies in place to ensure our customer funds are segregated and safe," said the note from Cboe Digital President John Palmer.
/jlne.ws/3UIca07
****** This is a rather negative take on a very upright reminder that there is a regulated world outside of the Wild West.~JJL
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The Drama's Back in Crypto, and Nobody's Happy About It; The future of digital currencies is looking bleak, as two of the market's biggest players look to combine amid a "liquidity crunch." Also, going global is hurting some stocks.
John Authers - Bloomberg
Regular readers of Points of Return will be aware that the US headed to the polls on Tuesday. The results of those elections will doubtless have a great impact over the course of markets and the economy over the next two years, but this edition of Points of Return isn't going to cover them. We have to finish production a little earlier than usual, for technical reasons, and there is in any case a risk that the apparent state of play as of midnight may be misleading. So this isn't the place to brief yourself on the midterms, whereas tomorrow's newsletter definitely will debrief readers. It does, however, allow our intrepid cryptocurrency reporter Isabelle Lee to delve into an extraordinary day in that market:
Crypto's Day of Infamy
It was one heck of a day in cryptoland, as the biggest player in crypto agreed to buy another big player. This is really quite contrary to the founding vision of an industry beloved by anarcho-capitalists.
/jlne.ws/3DT4zVL
****** No one is happy about this and we should not jump to conclusions about who FTX's demise might impact.~JJL
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Wheat Grown Indoors Offers Potential for Global Food Security; Infarm grows first staple indoors, without soil or pesticides; New technologies needed to tackle climate, supply chain issues
Agnieszka de Sousa - Bloomberg
Vertical farmers, known for growing herbs and salads indoors, have made a breakthrough in the quest for global food security: cultivating wheat in the same controlled environment. Amsterdam-based startup Infarm grew wheat without using soil or chemical pesticides, and with far less water than conventional farming. The first indoor farming company to grow a staple crop is a milestone for a nascent industry that's attracted venture capital funding on a promise that its technology can help feed the planet.
/jlne.ws/3WNp12Z
****** I have some hard red wheat growing under my bed. I just have not figured out how to get the harvester into my bedroom.~JJL
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Wednesday's Top Three
Our top story on Wednesday (aka Sam Bankman-Fried Day) was Sam Bankman-Fried No Longer a Billionaire After $14.6B Wipe-out: Bloomberg, from CoinDesk. Second was The Story of Sam Bankman-Fried's Backroom Deal With Binance's CZ, also from CoinDesk. Third was a tie between Sam Bankman-Fried's $16 Billion Fortune Is Eviscerated in Days, from Bloomberg, and Crypto Billionaires and CEOs Can't Be Trusted, from The Street (which yes, does mention Sam Bankman-Fried).
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| All MarketsWiki Sponsors» | | | | | | | John Lothian News (JLN) is the news division of John J. Lothian & Company, Inc. (JJLCO). The online media and financial services firm is staffed by derivatives industry, journalism and technology professionals. | | | | | | | John Lothian News Editorial Staff: | | | John Lothian
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| Lead Stories | FTX on brink of collapse after Binance abandons rescue; Sam Bankman-Fried's crypto exchange dashes to fill $8bn hole as Sequoia writes down equity on 'solvency risk'
Joshua Oliver, Richard Waters, Ortenca Aliaj and James Fontanella-Khan, and William Langley and Chan Ho-him - Financial Times
FTX is on the brink of collapse as chief Sam Bankman-Fried races to secure billions of dollars to salvage his empire after Binance ditched an eleventh-hour rescue of one of the world's biggest crypto exchanges. Venture capital firm Sequoia Capital said it would mark down its $214mn investment in FTX to zero after a run on the exchange in recent days blew a massive hole in its balance sheet and cast serious doubts over its survival.
/jlne.ws/3tgjoNg
Binance Backs Out of FTX Rescue, Citing Finances, Investigations; Crypto exchange reverses decision a day after announcing it; FTX customers could now be on the hook for steep losses
Yueqi Yang, Hannah Miller, and Olga Kharif - Bloomberg
Changpeng "CZ" Zhao walked away from his bailout for Sam Bankman-Fried's FTX.com almost as quickly as he offered a rescue. "Our hope was to be able to support FTX's customers to provide liquidity, but the issues are beyond our control or ability to help," Binance, the crypto exchange founded by Zhao, said in a statement. An FTX spokesperson declined to comment.
/jlne.ws/3WQbE23
Crypto's FTX Moment Shows Danger of Centralized Finance With No Central Bank; After Binance agreed to takeover rival FTX, the danger is obvious: There's no one big enough to rescue Binance
James Mackintosh - The Wall Street Journal
Having compressed most of the mistakes made by finance over the centuries into just over a decade, cryptocurrency speculators may finally be discovering the fundamental flaw of trying to build an alternative to government-backed finance: no government backing. This week the founder of the largest crypto exchange, Binance, provisionally agreed to rescue top-five rival FTX after it was abandoned by clients in the equivalent of a bank run. On Wednesday, Changpeng Zhao walked away, saying the problems were too big. FTX's future now looks grim, with likely knock-on effects across crypto.
/jlne.ws/3fUddLG
Sam Bankman-Fried's FTX Empire Faces US Probe Into Client Funds, Lending; SEC, CFTC scrutinize relationship between FTX.com and FTX US; SEC investigation predates Binance move to buy FTX.com
Lydia Beyoud, Yueqi Yang, and Olga Kharif - Bloomberg
US regulators are investigating whether beleaguered crypto-exchange FTX.com mishandled customer funds, and they're looking into the firm's relationships with other parts of Sam Bankman-Fried's crypto empire. The inquiries by the Securities and Exchange Commission and the Commodity Futures Trading Commission relate to the liquidity crisis that has pushed FTX to the brink, according to three people familiar with the matter. The SEC's scrutiny started months ago as a probe into FTX US and its crypto-lending activities, said two of the people, who who weren't authorized to speak publicly on the matter.
/jlne.ws/3FX3IpQ
Binance ditches deal to rescue rival crypto exchange FTX; Reversal comes as Sam Bankman-Fried tells investors up to $8bn in funding needed
Ortenca Aliaj, James Fontanella-Khan, Joshua Oliver, Scott Chipolina and Stefania Palma - Financial Times
Binance will abandon its deal to rescue Sam Bankman-Fried's FTX cryptocurrency exchange, citing concerns about its business practices and investigations by US financial regulators. The move comes a day after Binance, one of the world's largest crypto trading venues, tentatively agreed to buy FTX after it suffered a liquidity crunch. "As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com," Binance said in a statement late on Wednesday.
/jlne.ws/3EkyWG7
U.S. securities regulator says crypto events underscore industry risks
Chris Prentice - Reuters
The turmoil in the cryptocurrency industry of the last few days underscores the risks inherent in the industry as intermediaries handle so many core functions, the head of the top U.S. markets regulator said on Wednesday. Securities and Exchange Commission (SEC) Chair Gary Gensler used the events of the last few days - centered on concerns over the financial healthy of major cryptocurrency exchange FTX - to emphasize the risks of a crypto industry that has been operating outside of traditional financial markets' oversight.
/jlne.ws/3Uobfm3
Fed's Waller maintains skepticism on U.S. digital currency
Reuters
There is currently no credible case for the United States to develop an official digital version of the dollar, Federal Reserve Governor Christopher Waller said on Thursday, keeping to his long-held skeptical view amid debate at the U.S. central bank. "The case for adopting one is not yet convincing to me and many others," Waller said during an event at Queensland University of Technology in Brisbane, Australia. He has repeatedly referred to it as a solution in search of a problem.
/jlne.ws/3O1fEcc
Crypto Survey Finds Majority of Investors Welcome Regulation; Investors want an end to crypto's Wild West days, according to the latest MLIV Pulse survey.
Janet Babin - Bloomberg
One of the core fundamentals that personifies the Bloomberg newsroom is its commitment to data. As part of that commitment, the Markets Live team conducts a weekly survey of readers, asking questions about different elements of the financial markets. It's called the MLIV Pulse survey because it's the Markets Live team taking the pulse of investors. In October, the team asked readers for their opinions about crypto and more regulation.
/jlne.ws/3tlY4Gh
FTX Had a Death Spiral; Also WhatsApp for private equity and Elon Musk's stock sales.
Matt Levine - Bloomberg
So how could this happen? I don't know, but let me speculate a little bit. Let's start with Coinbase. Coinbase Global Inc. runs a cryptocurrency exchange. When FTX.com, one of the largest crypto exchanges, was instantaneously vaporized yesterday, Coinbase put out a statement, the gist of which was "don't worry, we are not going to be instantaneously vaporized." The part that I want to focus on is this paragraph.
/jlne.ws/3WOjPMk
JPMorgan Team Says Crypto Markets Face 'Cascade' of Margin Calls
Joanna Ossinger - Bloomberg
Crypto markets face weeks of deleveraging in the fallout from the crisis at digital-asset exchange FTX.com, a period of upheaval that could push Bitcoin down to $13,000, according to JPMorgan Chase & Co. strategists. A "cascade of margin calls" is likely underway given the interplay between the exchange, its sister trading house Alameda Research and the rest of the crypto ecosystem, a team led by Nikolaos Panigirtzoglou wrote in a note.
/jlne.ws/3A3or7r
FTX Founder Scrambles For Money With Options Dwindling
Alexander Osipovich and Elaine Yu - The Wall Street Journal
FTX boss Sam Bankman-Fried told employees of his crypto exchange that it plans to raise funds and its top priority is to help customers. "For the next week, we will be conducting a raise," Mr. Bankman-Fried said in a long message in the early hours of Thursday on FTX's internal Slack channel, according to a copy of the message seen by The Wall Street Journal. "The goal of this raise will be first to right by customers; second by current and possible new investors; third of all you guys." He added that his own interests would be last in line.
/jlne.ws/3A3fIlE
Shrunken Mississippi River Slows US Food Exports When World Needs Them Most
David R. Baker, Kim Chipman and Brian K. Sullivan Green - Bloomberg
The Mississippi River - the immense, quiet highway that courses down the middle of America, moving critical food, wood, coal and steel supplies to global markets - is shrinking from drought, forcing traffic to a crawl at the worst possible time. With water levels at record lows, barges have run aground, causing traffic jams as boats wait for the US Army Corps of Engineers to dredge a path through the shallows. The problem has been building for months. Summer brought meager rain to much of the Plains and Midwest. Now it's harvest time, when farmers bring in their grains and other crops, send them to market, and lay down fertilizer before the winter snows. The shriveled Mississippi has forced them to seek alternatives, all of them more expensive, like moving soybeans by rail to the Gulf Coast or shipping everything through distant West Coast ports. That will inevitably increase pressure on global food prices at a time when Russia's invasion of Ukraine has already sent them soaring.
/jlne.ws/3Tq5oLD
Crypto Prime Broker Urges Clients to Cash Out FTX Positions
Annie Massa - Bloomberg
Crypto prime broker Hidden Road Partners urged clients to sell off all balances and positions on embattled virtual currency exchange FTX.com and to convert them into US dollars, according to an email viewed by Bloomberg News. Hidden Road, which months ago completed a $50 million funding round with backers including Citadel Securities and FTX's venture capital arm, FTX Ventures, told clients in a message Wednesday that they have until 7:30 p.m. New York time to liquidate holdings at FTX.com. Hidden Road said that under a clause in customers' contracts it was declaring an "exchange default."
/jlne.ws/3tgiiBh
Time to open up UK bond markets to give investors more options; We must ensure consumers have regulated pathways to make sound financial choices
Stacey Parsons - Financial Times
In the UK, the average retail investor can buy equities of all kinds - a triple leveraged exchange traded fund or even a crypto asset - but not a Church of England bond launched this year. Access to the corporate bond market for both investors and discretionary wealth managers has been steadily eroded in the UK over the past 10 years, partly as an unintended consequence of the adoption of various EU regulations. At a time when retail investors are seeking safer ways to obtain yield and income, this needs to change.
/jlne.ws/3NY881M
Binance's Thumping of FTX Shows How Centralized Crypto Can Be; Changpeng Zhao won't be rescuing Sam Bankman-Fried's failed exchange after all, but he's still the most powerful middleman in crypto.
Justina Lee - Bloomberg
When then-billionaire Sam Bankman-Fried announced on Twitter that his FTX.com exchange was about to be gobbled up by rival Binance, he tried to reassure everyone with a standard bit of crypto cliché: The buyer was committed to a "decentralized global economy." Crypto people like decentralization. Never mind that Binance had backed FTX in a corner, saying it would dump its huge holdings of an FTX-issued token, triggering withdrawals and sending FTX into a tailspin so it needed to be saved. By Wednesday evening Binance announced it's walking away from the deal to acquire FTX after balking at a gap between liabilities and assets at FTX that could be in the billions of dollars. The crisis around FTX slammed crypto assets, with Bitcoin off 24% over two days and Ether down 29%.
/jlne.ws/3G4znpl
How Binance, FTX Deal Rocked the Crypto World and Then Collapsed; The crypto market rout deepens after a proposed rescue deal falls apart.
Joanna Ossinger - Bloomberg
It's been a tumultuous few days in the largely unregulated cryptocurrency world, with mudslinging on Twitter, a shock exchange takeover bid - which then collapsed - and plunging token values. On Tuesday, the world's biggest exchange, Binance Holdings Ltd., was set to acquire troubled rival FTX.com. On Wednesday, Binance walked away from the deal citing problems with FTX's finances as well as potential regulatory investigations. Its decision to walk away deepened the ongoing crypto rout, with Bitcoin tumbling to the lowest level in two years.
/jlne.ws/3WNgcq2
Sequoia Capital Writes Down Entire Value of Its FTX Stake; "We are in the business of taking risk," Sequoia writes; The writedown includes holdings of both FTX.com and FTX.us
Sarah McBride - Bloomberg
Sequoia Capital wrote down the full value of its $214 million investment in FTX only weeks after the hailing the embattled cryptocurrency exchange's founder as a "legend" with a "savior complex." The VC firm put in about $214 million last year in FTX's international and US businesses, Sequoia told its investors Wednesday. The writedown includes holdings of both FTX.com and FTX.us, said a spokeswoman for the firm.
/jlne.ws/3hzLXT6
Sir Evelyn de Rothschild, financier, 1931-2022; The dynast, philanthropist and racehorse breeder kept his family bank standing even through the City's 'Big Bang'
Andrew Hill - Financial Times
A senior colleague at NM Rothschild & Sons once issued the definitive judgment on the leadership style of Sir Evelyn de Rothschild, dynast, financier, philanthropist and owner and breeder of racehorses, who has died aged 91. "You ask yourself, 'Would Evelyn want this?'," the colleague told the Financial Times in 1988, "and if the answer was no you didn't do it.
/jlne.ws/3A3pV1E
Regulators Look to Lessen Treasury Market Reliance on Big Bank Dealers; Federal Reserve and Treasury Department have been on alert about the stability of the $24 trillion market
Andrew Ackerman and Jon Hilsenrath - The Wall Street Journal
Regulators are looking to broaden trading in the immense $24 trillion market for U.S. Treasury securities, a potential power shift away from the small club of big banks that have dominated the market for decades, according to a federal report to be released Thursday.
/jlne.ws/3DZfIV2
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Russia Orders Troops to Leave Ukrainian City of Kherson; Retreat is major setback for Putin amid Ukraine's advance; Withdrawal is latest defeat for Russia in 9-month-old invasion
Bloomberg
Russia ordered its troops to leave Ukraine's city of Kherson, the first major regional center seized in its invasion, in a highly symbolic setback for President Vladimir Putin. With Kyiv's forces pressing their counteroffensive in the region bordering occupied Crimea, Russian Defense Minister Sergei Shoigu in a televised briefing Wednesday ordered the troops to withdraw from the western bank of the Dnipro River and move to the other shore. "I understand that this is a very difficult decision," Sergei Surovikin, the general in charge of Russian forces, told Shoigu in proposing the move. "At the same time, we will save the lives of our servicemen and, in general, the combat capability of the group of troops, which is futile to keep on the right bank in a limited area."
/jlne.ws/3tg3lzd
Putin Is Running Out of Options on Ukraine
Bloomberg News
Two events underlined the challenges Russian President Vladimir Putin now faces over his invasion of Ukraine. The Russian military's order late yesterday for troops to retreat from the southern Ukrainian city of Kherson is a major setback on the battlefield. And Putin's decision not to go to next week's Group of 20 summit in Indonesia underlines his diminishing diplomatic clout.
/jlne.ws/3En1WND
Ukraine Wants Russia to Pay for the Climate Damage Wreaked by Its War; Emissions generated by conflict should be catalogued and attributed to the aggressors, Ukraine says.
Laura Millan Lombrana and Salma El Wardany - Bloomberg
Ukraine is taking its fight to repel the Russian invasion to the climate arena with demands that aggressors be forced to pay for greenhouse gas emissions caused by war. Weapons manufacturing and military vehicles running on fossil fuels generate significant emissions of planet-warming gas, even in times of peace. Missiles and bombs kill people but also disrupt power generation, destroy infrastructure and contribute to the warming of the atmosphere, while Russia's decision to cut gas supplies into Europe has prompted a scramble for fossil fuels.
/jlne.ws/3A3WyMI
Russia to Ease Child-Labor Rules as War Squeezes Worker Supply; Draft law would lift limits on hiring teenagers from age 14; Economists warn mobilization, exodus to worsen labor shortage
Bloomberg News
Russia is planning to ease restrictions on child labor, removing rules that had made it hard for teenagers to get jobs as the economy struggles under sanctions and the impact of the mobilization of 300,000 reservists for the war in Ukraine.
/jlne.ws/3EkkTAh
A Price Cap on Russian Oil Would Be a Dangerous Escalation; A price cap on Russian oil makes economic sense, but far more than economics is at stake here.
Tyler Cowen - Bloomberg
A price cap on Russian oil, set by the US and its allies, is likely to come to pass in the next few weeks. One question is how such a cap might operate. Another is whether it is a good idea. The complicated and uncertain answer to the first question is a reason to be uneasy about the second.
/jlne.ws/3EklsKp
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Cboe to launch trading in Mini S&P 500 Index options during global trading hours; The move will help market participants manage risk more efficiently, alongside providing the ability to adjust positions at any time of the day.
Wesley Bray - The Trade
Starting from 11 December, Cboe Global Markets will launch trading in Mini S&P 500 Index (XSP) options during global trading hours (GTH), making the product available nearly 24
/jlne.ws/3A6HBJU
CME Group Declares Quarterly Dividend
CME Group
CME Group Inc., the world's leading derivatives marketplace, today declared a fourth-quarter dividend of $1.00 per share. The dividend is payable December 28, 2022, to shareholders of record as of December 9, 2022.
/jlne.ws/3hwUMwZ
Nasdaq Moves First Market to Cloud
Shanny Basar - Markets Media
Nasdaq has completed the move of its first market to the cloud as part of its multi-year partnership with Amazon's cloud business, AWS, to migrate all of its North American markets. In November last year Nasdaq announced a partnership with AWS to move its North American markets to the cloud in a phased approach, starting with US options market Nasdaq MRX. Brenda Hoffman, chief technology officer for the Market Platforms division, said on a panel at Nasdaq's investor day on 8 November that over the last year the firm has been moving products and services that run the 25 core trading markets that it owns and operates to the cloud.
/jlne.ws/3DVGY70
Nasdaq Announces End of Month Open Short Interest Positions in Nasdaq Stocks as of Settlement Date October 31, 2022
Nasdaq
At the end of the settlement date of October 31, 2022, short interest in 3,440 Nasdaq Global MarketSM securities totaled 10,444,123,033 shares compared with 10,553,498,844 shares in 3,446 Global Market issues reported for the prior settlement date of October 14, 2022. The end of October short interest represents 2.81 days average daily Nasdaq Global Market share volume for the reporting period, compared with 2.96 days for the prior reporting period.
/jlne.ws/3hxsSRJ
Saudi Wealth Fund Plans to Sell 10% Stake in Stock Exchange
Julia Fioretti - Bloomberg
Saudi Arabia's Public Investment Fund is selling a 10% stake in the kingdom's stock exchange in a secondary offering, according to a statement on Thursday. The PIF is selling 12 million shares in Saudi Tadawul Group Holding, worth about $655 million, according to the terms of the deal. The offering comes almost a year after the stock exchange went public in a $1 billion initial public offering. Its stock has almost doubled since.
/jlne.ws/3UrBCHt
EBS Market on CME Globex Notice
CME Group
EBS Market on CME Globex Notice. Topics in this issue include: Critical Information
/jlne.ws/3hxn0Ib
Moscow Exchange takes part in the Finopolis 2021/22 forum
MOEX
Moscow Exchange is a partner of the largest Russian forum of innovative financial technologies Finopolis 2021/22. The forum is organized by the Bank of Russia and is held on November 10-11, 2022 in Moscow. As part of the forum, the Moscow Exchange is holding a round table on the topic: "Development of digital services for investors: challenges and driving force" . The event will take place on November 10 at 18:15 (Hall 3, Crocus Expo).
/jlne.ws/3hwsDX6
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Twitter Quickly Scraps 'Official' Badges for High-Profile Users
Nick Turner - Bloomberg
Twitter Inc. rolled out a new "official" badge for high-profile accounts and then just as quickly scrapped the program, with Elon Musk saying the company would do further experiments under his ownership. "Please note that Twitter will do lots of dumb things in coming months," he tweeted after saying that he had killed the program. "We will keep what works & change what doesn't." The short-lived "official" badge was used to label government figures, businesses, major media outlets and some public figures. Twitter users noticed it appearing on more accounts overnight, and it drew some puzzled reactions, with some suggesting it looked cluttered beneath the existing blue verified badge.
/jlne.ws/3tgCnar
Tech IPO Candidates Leap Ahead of Bigger Peers in Cutting Jobs; Firms reduce size due to delayed offerings in a choppy market; Jobs cuts are expected to spread to more firms, new industries
Drew Singer - Bloomberg
Technology companies in the IPO pipeline are responding to the souring economic outlook by cutting jobs, often well before their better-known, publicly traded peers. Startups including Stripe Inc., Chime Financial Inc. and Gopuff are among the wave of candidates for initial public offerings that recently announced workforce reductions. They join high-profile tech giants like Meta Platforms Inc., which on Wednesday announced the first major round of layoffs in the company's history, as well as Twitter Inc., Salesforce Inc. and Peloton Interactive Inc., which are also getting rid of employees.
/jlne.ws/3EmhbGE
Musk's First Email to Twitter Staff Ends Remote Work
Kurt Wagner - Bloomberg
New Twitter Inc. owner Elon Musk emailed his workers for the first time late Wednesday to prepare them for "difficult times ahead" and ban remote work unless he personally approved it.
/jlne.ws/3FZBJWx
ION Markets launches new derivatives suite; Record trading volumes have driven clients to demand new solutions to manage risk and process business at scale.
Laurie McAughtry - The Trade
ION Markets has expanded its cleared derivatives offering with XTP, a front-to-back product suite providing real-time insights into net positions, margins, risk, analytics, commissions and more. "Record trading volumes, persistent market volatility and sudden shifts in valuations have challenged the derivatives industry to an unprecedented degree," said Francesco Margini, chief product officer - cleared derivatives at ION Markets, speaking to The TRADE.
/jlne.ws/3A33WYP
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| Cybersecurity | | Top stories for cybersecurity | Cybersecurity: It's Always A Journey
Andrew Hollister - Forbes
Executives and other business leaders are constantly bombarded-whether by email, social media or otherwise-with advertising of the latest and greatest cybersecurity products. With thousands of vendors offering solutions in the cybersecurity space, it's no surprise that they are all clamoring for attention and, of course, some share of the wallet.
/jlne.ws/3WP6x28
Why Businesses Shouldn't Cut Cybersecurity Costs-Especially During A Crisis
Juta Gurinaviciute - Forbes
The global economy has been shaken enough times in the past two years for some experts to say the world will likely enter another recession soon. While it's essential to work on a renewed crisis management plan, it's always a question of what to prioritize and which costs to minimize while preserving the quality of your product. This rethinking can have a major impact on the processes of small- and medium-sized companies.
/jlne.ws/3TFfZ5D
EU Has New Cybersecurity Rules for Financial Firms
PYMNTS
Lawmakers in Europe have voted to finalize legislation that places tougher cybersecurity rules on financial firms. The European Commission voted 612-18 to adopt the Digital Operational Resilience Act (DORA), CoinDesk reported Thursday (Nov. 10). DORA is "a cornerstone of our work on digital finance in the European Union, making sure that we support innovation and do it in a safe way," European Commissioner Mairead McGuinness said during a debate on the law, per CoinDesk. "Protecting the financial system from cyberattacks and cyber fraud is vital."
/jlne.ws/3EmvBGo
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| Cryptocurrencies | | Top stories for cryptocurrencies | Binance Walks Away From Deal to Rescue FTX; Crypto exchange's decision leaves FTX with uncertain future as it faces multibillion-dollar shortfall
Patricia Kowsmann, Caitlin Ostroff and Berber Jin - The Wall Street Journal
Crypto exchange Binance reversed course on a rescue offer for FTX Wednesday, leaving the prominent digital firm with an uncertain future as it faces a shortfall of up to $8 billion, according to people familiar with the matter. Binance chose not to go ahead with the nonbinding offer following a review of the company's finances, the exchange said. "In the beginning, our hope was to be able to support FTX's customers to provide liquidity, but the issues are beyond our control or ability to help," Binance said in a statement. In a call Wednesday with investors in FTX, founder and Chief Executive Sam Bankman-Fried said he needs emergency funding because of customer withdrawal requests received in recent days, the people familiar with the matter said. Those requests sparked a debilitating liquidity squeeze.
/jlne.ws/3NQCpiV
Binance Pulls Out of Deal to Acquire Rival Crypto Exchange FTX
David Yaffe-Bellany - The New York Times
It was a stunning fall for a celebrated executive who was leading the crypto industry's charge into the mainstream of finance. Over the last two years, Sam Bankman-Fried, a 30-year-old entrepreneur, built a crypto exchange called FTX into a $32 billion company. He spent hundreds of millions of dollars to prop up struggling crypto firms. And he became a major political donor to Joseph R. Biden Jr.'s presidential campaign as well as a frequent, welcome presence in the halls of Congress.
/jlne.ws/3A1RzMx
Crypto's FTX CEO looking at all options as Binance deal collapses
Hannah Lang and Angus Berwick - Reuters
FTX Chief Executive Officer Sam Bankman-Fried told employees he was exploring all options for his firm after a deal with cryptocurrency exchange Binance collapsed on Wednesday. The proposed deal between Bankman-Fried and rival Binance Chief Executive Officer Changpeng Zhao of Binance had been the latest emergency rescue in the world of cryptocurrencies this year, as investors pulled out from riskier assets in the wake of rising interest rates. The cryptocurrency market has fallen by about two-thirds from its peak to $1.07 trillion.
/jlne.ws/3DPP018
After Binance says saving FTX is 'beyond our control,' what's next for SBF-and crypto as a whole?
Marco Quiroz-Gutierrez - Fortune
Barely a day after Binance CEO Changpeng Zhao said his company wanted to buy competing crypto exchange FTX, the deal is off. The Wall Street Journal reported on Tuesday that Binance was walking away from the acquisition due to reports alleging FTX mishandled customer funds. Earlier, CZ had tweeted that by signing a non-binding letter of intent, Binance always had that option.
/jlne.ws/3hzK6O8
Solana Blockchain Hit by FTX Tremors as Nearly $800M SOL Tokens Set to Be Unstaked
Jocelyn Yang - CoinDesk
The epic comedown of Sam Bankman-Fried's FTX crypto exchange and Alameda Research trading firm are making waves in the market for the Solana blockchain's SOL token - to the point where some investors have apparently become so nervous that they're demanding back tokens they had "staked" or deposited into the blockchain's underlying security protocol.
/jlne.ws/3UrE5BP
Sam Bankman-Fried's FTX is not the Lehman Brothers of crypto: Morning Brief
Jared Blikre - Yahoo Finance
Cryptocurrency crashed on Wednesday, with most coins and tokens plummeting to multi-year lows. Bitcoin has lost one quarter of its value this week alone as major crypto exchange FTX halted customer withdrawals and lost a potential buyout bid Wednesday from rival firm Binance. Until a few days ago, FTX CEO Sam Bankman-Fried was considered an industry leader and a lender of last resort. The media compared him to the Federal Reserve, Warren Buffett and J. P. Morgan. Now, potential lenders are backing away from FTX's toxic balance sheet. Bankman-Fried, just 30 years old, has lost most of his billions of dollars in wealth. In nixing the buyout, Binance cited "mishandled customer funds" and "US agency investigations."
/jlne.ws/3UoihXD
The Downfall of Sam Bankman-Fried's FTX: The Industry Reacts
Daniel Kuhn - Yahoo Finance
The rise and fall of Sam Bankman-Fried's FTX exchange has already had a profound impact on the industry. Bankman-Fried is among the most influential political dealers in crypto, and so regulators and politicians will likely notice that the exchange he built has collapsed. That FTX may (or may not) be bought by Binance, its largest rival and earliest backer, is significant. While Binance has made serious steps towards transparency in recent years, it is also a stand-in for crypto's seeming intransigence.
/jlne.ws/3DWs3cF
Binance Backs Out of Deal to Buy FTX: 'Beyond Our Ability to Help'
Stacy Elliott - Decrypt
One day after crypto exchange Binance announced its intent to acquire competitor FTX for an undisclosed amount, the company pulled out of the deal. "Our hope was to be able to support FTX's customers to provide liquidity, but the issues are beyond our control or ability to help," Binance said in a statement, first reported by the Wall Street Journal and tweeted a few minutes later.
/jlne.ws/3NRlEUM
FTX Faces US Justice Department Probe: WSJ
Nikhilesh De - CoinDesk
The U.S. Department of Justice is looking into crypto exchange FTX after its apparent collapse, The Wall Street Journal reported Wednesday. FTX was already facing probes from state and federal regulators, but these investigations have taken on a new interest following revelations that the company had a liquidity issue. Fellow crypto exchange Binance briefly agreed to acquire the company, but walked away from the deal on Wednesday. Shortly thereafter, Bankman-Fried reportedly told investors that FTX needed $8 billion to continue operating, or would risk having to file for bankruptcy.
/jlne.ws/3fPDET1
OpenSea Pledges to Enforce NFT Royalties After Creator Backlash
Andrew Hayward - Decrypt
OpenSea, the largest NFT marketplace by trading volume, announced today that it will continue to enforce creator royalties on NFTs following significant pushback from the community. "We will continue to enforce creator fees on all existing collections," the firm wrote in a tweet thread. "We're awed by the passion we've seen from creators and collectors alike this week. We were looking for your feedback, and we heard it, loud and clear."
/jlne.ws/3tgTcCb
Meta cuts 11,000 jobs as it sinks more money into the metaverse
Aditya Soni and Nivedita Balu - Reuters
Meta Platforms Inc (META.O) said on Wednesday it would cut more than 11,000 jobs, or 13% of its workforce, as the Facebook parent doubled down on its risky metaverse bet amid a crumbling advertising market and decades-high inflation. The mass layoffs, among the biggest this year and the first in Meta's 18-year history, follow thousands of job cuts at other tech companies including Elon Musk-owned Twitter Inc, Microsoft Corp (MSFT.O) and Snap Inc. Like its peers, Meta aggressively hired during the pandemic to meet a surge in social media usage by stuck-at-home consumers. But business has suffered this year as advertisers and consumers pull the plug on spending in the face of soaring costs and rapidly rising interest rates.
/jlne.ws/3UMonBg
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| Politics | | An overview of politics as it relates to the financial markets | Joe Biden says Elon Musk security concerns 'worthy of being looked at; World's richest man has courted controversy with Twitter deal and Starlink terminals in Ukraine
Stefania Palma - Financial Times
Joe Biden said Elon Musk's links to foreign countries are "worthy of being looked at", in response to a question about whether Washington had national security concerns around the world's richest man. "I think that Elon Musk's co-operation and/or technical relationships with other countries is worthy of being looked at," Biden told reporters on Wednesday, without elaborating on further details. The US president added he was not "suggestingâEUR‰.âEUR‰.âEUR‰.âEUR‰whether or not [Musk] is doing anything inappropriate". Biden's comments raise fresh questions about the possibility of government scrutiny on Musk's dealings less than two weeks after the Tesla boss closed the $44bn Twitter deal, one of the most high-profile and volatile acquisitions in recent times.
/jlne.ws/3DSzUb7
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| Regulation & Enforcement | | Stories about regulation and the law. | Short Seller Jim Chanos Warns the Crypto Crackdown Is Coming Now
Joe Weisenthal and Tracy Alloway - Bloomberg
A regulatory crackdown on individuals and companies associated with the crypto space is on its way following a sell-off that has wiped more than $2 trillion dollars off the market's total value, famed short seller Jim Chanos has warned. "You're going to get a judicial outcry now to regulate the system and bring these guys to justice," Chanos, the founder of hedge fund firm Chanos & Co. said. The warning comes on the day that Sam Bankman-Fried, the founder and CEO of major crypto exchange FTX.com, suggested the company could be heading for bankruptcy barring an injection of fresh capital.
/jlne.ws/3NTabE1
ECB Raises Limit on Securities Lending to Ease Year-End Crunch; Lending limit against cash collateral raised to €250 billion; Move comes amid mounting concern over market dysfunction
Libby Cherry and James Hirai - Bloomberg
The European Central Bank has increased the amount of securities that central banks in the euro area can lend out against cash collateral, a bid to satisfy demand for high-quality liquid assets around year-end. The limit on such transactions will be 250 billion euros ($250 billion) as of Nov. 10, compared with 150 billion euros previously, the ECB said in a statement. "This is a precautionary measure to ease collateral scarcity and support market functioning around the year-end," said Executive Board member Isabel Schnabel in a tweet.
/jlne.ws/3G3TTGw
Fund managers sound alarm over fragmenting regulation; Deglobalisation strains regulation and investment choices, fund executives say
Adrienne Klasa and Harriet Agnew - Financial Times
Top fund management executives have voiced concerns that fragmented regulation will hold them back, as asset managers try to balance the demands of a highly interconnected investment industry against retreats from globalisation.
/jlne.ws/3tl4F3y
Federal Trade Commission to Expand Use of Law Against Anticompetitive Practices; Action could lead to more legal challenges against alleged unfair practices by businesses
John D. McKinnon and Dave Michaels - The Wall Street Journal
The Federal Trade Commission announced Thursday that it plans to expand its use of a century-old statute that could allow the agency to bring more lawsuits against what it sees as anticompetitive corporate behavior. The move-broadening its interpretation of the 1914 law that created the FTC-opens the door to more legal challenges against businesses engaging in alleged coercive or deceptive conduct that undermines competition, Chairwoman Lina Khan said in a briefing with reporters.
/jlne.ws/3EhS2g7
US Justice Department Looking Into FTX Turmoil During SEC Probe
Lydia Beyoud - Bloomberg
The Justice Department is looking into the turmoil surrounding Sam Bankman-Fried's FTX.com and the liquidity crisis that has pushed the firm to the brink, according to a person familiar with the matter. Officials from the Justice Department are working with Securities and Exchange Commission attorneys probing the matter, said the person. Representatives for the SEC and Justice Department declined to comment. A representative for FTX didn't immediately return a request for comment on the Justice Department interest, which was first reported by the Wall Street Journal.
/jlne.ws/3fW6xgf
Commissioner Johnson to Participate in a Fireside Chat at the Institutional Digital Assets and Crypto Regulation Symposium
CFTC
Commissioner Johnson will participate in a fireside chat on the CFTC's Role in Regulating Digital Assets at The Institutional Digital Assets and Crypto Regulation Symposium, hosted by City & Financial Global.
/jlne.ws/3hwy5Jm
Statement of Commissioner Summer K. Mersinger Regarding Extension of Staff No-Action Letter 20-31 for Swaps Executed as part of Certain Package Transactions
CFTC
I support the continuation of no-action relief that is being provided through the extension of Staff No-Action Letter 20-31 for package transactions where at least one individual swap component is subject to the trade execution requirement, and all other components are futures contracts (MAT/Futures Package Transactions). This extended no-action relief will benefit market participants that might otherwise be unable to execute MAT/Futures Package Transactions, which are heavily traded in today's markets, while the Commission continues to consider permanent solutions including, if appropriate, amendments to CFTC regulations.
/jlne.ws/3A2VZ5D
CFTC Staff Extends No-Action Position for Certain Types of Package Transactions from the Trade Execution Requirement for Swaps
CFTC
The Commodity Futures Trading Commission's Division of Market Oversight (DMO) today extended its no-action position for swaps executed as part of a package transaction in the categories described below. This extension will enable DMO to continue to assess the appropriate response for applying the trade execution requirement to swaps in certain types of package transactions. This no-action position will expire at 11:59 pm (ET) on the earlier of: (i) November 15, 2025, or (ii) the applicable effective date or compliance date of a CFTC action, including without limitation a rulemaking or order, that provides a permanent solution.
/jlne.ws/3UM0A48
NFA orders Chicago, Ill. introducing broker Stage 5 Trading Corp. to pay a $75,000 fine
Christie Hillsman and Karen Wuertz - NFA
NFA has ordered Stage 5 Trading Corp. (Stage 5) to pay a $75,000 fine. Stage 5 is an introducing broker (IB) Member of NFA located in Chicago, Illinois. The Decision, issued by NFA's Business Conduct Committee (BCC), is based on a Complaint issued by the BCC and a settlement offer submitted by Stage 5, in which the firm neither admitted nor denied the allegations in the Complaint. The BCC's Complaint charged Stage 5 with doing business with an unregistered forex IB and using a website that did not distinguish clearly between Stage 5 and the unregistered forex IB. The Complaint also charged Stage 5 with failing to diligently supervise the firm's forex operations.
/jlne.ws/3UGotds
Court Enters Final Judgment Against Connecticut Investment Adviser Charged with Stealing Client Funds
SEC
The United States District Court for the District of Connecticut entered a final judgment against Matthew O. Clason on November 8, 2022 in a previously-filed SEC case that charged Clason, a Connecticut-based investment adviser, with stealing hundreds of thousands of dollars from an advisory client.
/jlne.ws/3To8EqL
FCA seeks members for new Innovation Advisory Group
FCA
In July 2022, the Innovation department announced it was setting up a new advisory group to deepen Innovation's engagement with the industry and inform the FCA's forward-looking work programme.
/jlne.ws/3A6IjH4
SFC and ICAC joint operation against sophisticated ramp-and-dump syndicate
Securities & Futures Commission of Hong Kong
Eight people - including a suspected ringleader of a sophisticated syndicate operating ramp-and-dump schemes through a complex cross-shareholding network of Hong Kong-listed companies involving illicit gains of $191 million - were arrested in a joint operation of the Securities and Futures Commission (SFC) and the Independent Commission Against Corruption (ICAC) mounted in the past two days (9 and 10 November) (Notes 1 & 2).
Other arrestees are also key members of the syndicate including the chairperson of a Hong Kong-listed company and three responsible officers of two brokers.
/jlne.ws/3G8O9vc
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Volatility Leads to 'Golden Age' of Electronic Equity Trading
Shanny Basar - Markets Media
Eric Stockland, head of quantitative strategy at BMO Capital Markets, said electronic equity trading is in a "golden age" as venues compete for institutional business on performance, rather than fees. Stockland told Markets Media that BMO Capital Markets trades very disproportionately to overall market share as the firm chooses venues where it gets the best trading outcome which provides more incentive for electronic venues to compete.
/jlne.ws/3DVzTU3
Musk Ties Tesla's Fortunes to the Ad Business It's Long Eschewed; If Twitter is unable to win back advertisers, Tesla's CEO may have to keep selling shares.
Dana Hull - Bloomberg
Elon Musk is fond of saying that fate loves irony. This go-to phrase now seems awfully prophetic. The Technoking of Tesla has long eschewed advertising, arguing the electric-car company is better off spending on product. Besides, who needs a multimillion-dollar Super Bowl spot when you can blast your cherry-red Tesla Roadster into space to the soundtrack of David Bowie's "Life on Mars"?
/jlne.ws/3fQpHE8
China Stock Traders Are Clinging to Every Sign of Hope They See; Wednesday's property rally was latest in run of big upswings; 'Being on the wrong side will really cost you:' abrdn's Woon
Bloomberg
Just weeks back, Chinese stock traders were looking at every excuse to sell. In a dramatic shift in sentiment, they are now latching onto the slightest signal of positive news. Unverified social posts about a China reopening and a whiff of progress in Sino-American audit talks sent the market into overdrive last week. Then on Wednesday, Beijing's expansion of a financing support program spurred frenzied buying of property stocks even as authorities didn't say how much aid is meant for developers.
/jlne.ws/3UKWOs0
JPMorgan's Trading Desk Maps Out CPI Game Plan for Wall Street; In-line inflation seen as 'small positive' for stocks, bonds; October event shows risk of calling market based on one factor
Lu Wang - Bloomberg
With midterm election results still unknown, Wall Street is bracing for the next event risk: a fresh inflation report that will heavily influence the latest round of Federal Reserve rate hikes. Projecting any fallout from the release of the consumer price index Thursday is getting harder, but the trading team at JPMorgan Chase & Co. is undeterred -- with a game plan that suggests stocks could fall as much as 6% during the session if the data comes in hotter than anticipated.
/jlne.ws/3tiWjJL
FTX Fiasco Hits Investors From Tiger Global to Tom Brady; Other big-name investors include Tom Brady, Ontario Teachers; The once-high-flying exchange faces questions from regulators
Hema Parmar and Gillian Tan - Bloomberg
The FTX.com fiasco has ensnared some of the biggest names in finance. Tiger Global Management, Third Point and Altimeter Capital Management are among hedge funds that recently participated in funding rounds for Sam Bankman-Fried's once-high-flying crypto exchange, which now faces existential threats as regulators descend and a rival's proposed bailout appears far from certain. Brevan Howard Asset Management's Alan Howard, the family office of Paul Tudor Jones and Millennium Management founder Izzy Englander also chipped in as angel investors, alongside celebrities including Gisele Bundchen and Tom Brady.
/jlne.ws/3EkK4Ty
The Banking Market Where Profits Are Guaranteed; Customers in Ireland pay the price of bolstering lenders, just as they did for bailing them out.
Marc Rubinstein - Bloomberg
At the heart of banking regulation sits a tradeoff between competition and financial stability. Competition allows consumers access to better prices and better products. But it can also encourage banks to do wayward things, often at the expense of soundness. Faced with the choice, regulators typically come down on the side of safety.
/jlne.ws/3NTDYwl
Alternative ETFs Finally Get Their Moment in the Sun; It took 15 years for an ideal environment to arrive for alternative exchange-traded funds. But their time has come.
Joel Weber and Eric Balchunas - Bloomberg
It took 15 years for an ideal environment to arrive for alternative exchange-traded funds-which employ or mimic hedge fund strategies-but their moment has finally come. They've grown assets by 25% this year as investors look for something to help offset the decline of 60/40 portfolios.
/jlne.ws/3G57cqu
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Session 4: Digital environment assets programmable money and the future of climate finance
UN Climate Change Events - YouTube
This session will explore how tokenizing environmental assets through blockchain technology can address frictions in mobilizing and distributing climate finance globally.
/jlne.ws/3EkOzNT
Climate Finance Kicks off Thematic Days Agenda at COP27
COP27
Opening Session addresses "Climate Finance in a Polycrisis Era"; Program of 26 events spotlights implementation, and just and equitable transition in Africa; Finance Ministers reflect on commitment to climate action and financing for loss and damage; Launch of COP27 Presidency Reducing the Cost of Sustainable Borrowing initiative. The pressing issue of climate finance kicked off COP27's Thematic Days Agenda by reiterating it as a cornerstone for implementing climate action to save lives and livelihoods around the world. In the first of 11 themed days at COP27, Finance Day addressed several aspects of the climate finance ecosystem, including innovative and blended finance and financial instruments, tools and policies that have the potential to enhance access, scale up finance and contribute to the transition envisaged and needed, including those related to debt for environment swaps.
/jlne.ws/3WU6Ybp
The Ancient Superfood That Can Help Ease Hunger in a Parched World; Fonio, a healthy and drought-resilient grain native to West Africa, could bolster the region's food security with advances in how it is harvested and processed.
Yinka Ibukun - Bloomberg
As a hunger crisis deepens in West Africa's Sahel region, leaving almost 40 million people facing food insecurity, a native grain that's been grown in much the same way for 5,000 years may offer a solution. Sometimes called a superfood, fonio is nutrient-rich and gluten-free, making it easy to digest. Plus, it has a low glycemic index, so it doesn't cause blood sugar to spike. It's a hardy crop, needing little fertilizer or attention to grow. And crucially, it doesn't require much water, meaning it's resilient to dry conditions, which climate change will intensify.
/jlne.ws/3A59HoC
EU Proposes Tighter Rules for Combustion Engines Ahead of Ban
William Wilkes - Bloomberg
The European Union proposed stricter emissions rules for the continent's last generation of combustion engines, a move aimed at reducing particulate pollution in the continent's cities. The bloc said the new rules for the so-called Euro-7 generation of engines would further reduce by about a quarter the amount of nitrous oxides that diesel engines can emit. Nitrous oxides can damage the human respiratory tract, worsening conditions like lung infections and asthma and potentially causing chronic lung disease.
/jlne.ws/3DXQpms
CDP to use ISSB climate standard in global platform; Move has potential to align disclosure requirements and deliver consistent climate data for investors.
Environment Analyst
Global non-profit CDP is to incorporate the International Sustainability Standard Board's (ISSB's) IFRS S2 climate-related disclosures standard into its global environmental disclosure platform, in what it says will be a major step towards delivering a comprehensive global baseline for capital markets. The standard, which is currently being finalised, will be incorporated into CDP's existing questionnaires, which are issued to companies annually on behalf of 680 financial institutions with over $130tn in assets.
/jlne.ws/3NXz9Cw
COP27: Sharp rise in fossil fuel industry delegates at climate summit
Matt McGrath - BBC
The number of delegates with links to fossil fuels at the UN climate summit has jumped 25% from the last meeting, analysis shared with the BBC shows. Campaign group Global Witness found more than 600 people at the talks in Egypt are linked to fossil fuels. That's more than the combined delegations from the 10 most climate-impacted countries. Around 35,000 people are expected to attend the COP27 summit in the Red Sea resort of Sharm el-Sheikh. These conferences have always attracted significant numbers from the coal, oil and gas industries, who are keen to influence the shape of the debate.
/jlne.ws/3fWlPl5
"How Central Banks and Supervisors are Helping to Green the Financial System"
Monetary Authority of Singapore
Keynote Remarks by Mr Ravi Menon, Managing Director, Monetary Authority of Singapore, and Chair, Network for Greening the Financial System, at the NGFS COP27 Finance Day Event on 9 November 2022. Good afternoon ladies and gentlemen. Welcome to the NGFS COP27 Finance Day Event. As chair of the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), I would like to thank Singapore for hosting the NGFS at the Singapore Pavilion. The NGFS has grown significantly in the last five years. The NGFS was established in 2017 as a coalition of central banks and financial supervisors to help green the financial system and contribute to global climate action.
/jlne.ws/3fWLLgv
Qatar's Carbon-Neutral World Cup Is a Fantasy; There's no such thing as a carbon-neutral event, but that doesn't mean sustainability is a non-starter for football's biggest party.
Ira Boudway and Eric Roston - Bloomberg
Twelve years ago, when Qatar successfully bid to host this year's men's FIFA World Cup, its organizers made the eyebrow-raising promise that their edition of the tournament would be carbon-neutral. Qatar was not the first World Cup host to make such a claim - that distinction belongs to Germany in 2006 - but as a tiny, oil-rich country on a desert peninsula in the Persian Gulf, its net-zero promise seemed to take greenwashing to a new extreme. On a land mass smaller than the state of Connecticut and with a population of about 3 million, Qatar had very little of the infrastructure needed to put on a World Cup - yet planned to build seven stadiums and host more than a million visitors without contributing a single kilogram to global carbon emissions.
/jlne.ws/3UOsZXz
Land Allocated to Oil, Gas Exploration in Africa Set to Quadruple, Threatening Forests; Blocks overlap with 30% of Africa's tropical forests; Rainforest Foundation UK, Earth InSight launch report at COP27
Michael J Kavanagh - Bloomberg
The area of land allocated to oil and gas activity in Africa is set to quadruple, threatening critical forests that help combat climate change, according to a new report by two environmental groups. Rainforest Foundation UK and Sacramento, California-based Earth InSight used mapping technology to show that gas and oil blocks overlap with about 30% of the continent's dense tropical forests and more than a third of the Congo Basin, the world's second-largest rainforest after the Amazon.
/jlne.ws/3O99R4t
Investing And the Backlash to It
Saijel Kishan - Bloomberg
The strategy known as ESG investing has grown by leaps and bounds - and landed in hot water. Its focus on environmental factors, social issues and questions of corporate governance had always attracted people drawn to progressive causes, as well as fund managers drawn to the above-average returns it's generated. But in the US, that association with liberalism has triggered a backlash from Republican Party politicians, with efforts underway in about 20 states to rein in ESG. At the same time, states led by Democratic Party officials have been pushing the other way, joined by activists who are quick to call out anything they see as ESG backsliding.
/jlne.ws/3EhMja6
Climate Projections Again Point to Dangerous 2.7C Rise by 2100; Researchers at Climate Action Tracker warn that the global rush for gas poses new risks to long-term progress on emissions targets.
Eric Roston - Bloomberg
The research partnership Climate Action Tracker on Thursday released its latest projections of how greenhouse gas emissions may dangerously raise the global average temperature. The result is similar to last year's - a troubling 2.7C increase above pre-industrial levels if policies don't improve - but a different point of comparison adds a new dimension to the finding.
/jlne.ws/3TuBCFs
DWS Expands Xtrackers ESG Suite with Dividend, Growth and Value ETFs
DWS
DWS, one of the world's leading asset managers, announced today the listing of three new exchange-traded funds (ETFs) that provide exposure to U.S. equity investment styles with ESG (environmental, social and governance) screened U.S. dividend, growth and value-oriented equities. The products, which listed on the CBOE, BZX Exchange today are: Xtrackers S&P ESG Dividend Aristocrats ETF (CBOE: SNPD); Xtrackers S&P 500 Growth ESG ETF (CBOE: SNPG); Xtrackers S&P 500 Value ESG ETF (CBOE: SNPV).
/jlne.ws/3tBpf01
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Goldman Names About 80 New Partners in Biggest Class Under Solomon; The firm tapped 80 employees to join prestigious rung; Partnership rank comes with special privileges, large payouts
Sridhar Natarajan - Bloomberg
Goldman Sachs Group Inc.'s top tier will see the biggest infusion of partners during David Solomon's run atop the finance giant. The firm tapped 80 employees in its biennial ritual to join what has long been considered one of Wall Street's most prestigious clubs, with less than 1% of the firm making up the top rank. This year's class is 33% bigger than the one from 2020. It's the most diverse group of executives elevated to Goldman's top rank, with the most women and greatest number of Black employees ever promoted to partner, the New York-based firm said. The class includes 23 women and seven Black executives. Two-thirds of the new partners are based in the Americas, and more than quarter are from Europe, the Middle East and Africa.
/jlne.ws/3A2NlnQ
Mortgage Fund in Canada Halts Payouts Amid Liquidity Crunch; Repayment activity from borrowers is 'suppressed': Romspen; Fund is trying to expedite asset sales to free up cash
Layan Odeh - Bloomberg
Canadian real estate lender Romspen Investment Corp. has halted redemptions on its largest fund after a number of borrowers stopped making payments. The Toronto-based firm will "temporarily defer payment" of redemptions until it has more clarity on when borrowers will repay loans and the fund can get cash from asset sales, according to a letter to investors dated Nov. 8. "Loan payoff activity remains suppressed."
/jlne.ws/3UIbjMV
UK's top fund managers tell FTSE companies to rein in CEO pay; Boards should show 'additional restraint' as cost of living crisis hits staff, says Investment Association
Daniel Thomas - Financial Times
The UK's top fund managers have told company boards to keep pay for chief executives and other senior managers "in check" this year to reflect the pain being inflicted on many of their staff by the cost of living crisis. In a letter to the heads of remuneration at FTSE-listed companies, the Investment Association, which represents British fund managers, called for restraint on executive salary increases this year as many UK households struggle financially.
/jlne.ws/3ToNRU3
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Covid Hospitalizations Are Rising in Kids Under 6 Months, CDC Director Walensky Says; Evidence suggests mom's vaccination may protect newborn; Some adults still at high risk, yet have vaccines available
Riley Griffin - Bloomberg
Covid-19 hospitalizations are rising among babies under 6 months old, and the US Centers for Disease Control and Prevention is urging mothers to get vaccinated to reduce the risk of infection in those not yet eligible for shots, Director Rochelle Walensky said. "We're seeing more and more of those younger babies getting hospitalized," Walensky said in an exclusive interview at CDC's headquarters in Atlanta. "That's really where we're trying to do some work now because we think we can prevent those by getting mom vaccinated."
/jlne.ws/3huu4W1
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Why Australia Is Gearing Up for Possible War With China; The Pacific is vast, but there is an increasing understanding in Canberra that a conflict over Taiwan would hit very close to home.
Hal Brands - Bloomberg
Japan is America's single most important ally, but Australia has historically been its most reliable. Alone among US allies, not just in the Indo-Pacific but globally, Australia has fought in all of America's major wars since World War I. As I found during three days in Sydney and Canberra, the prospect of war in the Taiwan Strait is forging Australia, Japan and the US into a latter-day Triple Entente - the pre-World War I coalition that sought to contain Imperial Germany - in the Western Pacific. That comparison is reassuring and disquieting at the same time.
/jlne.ws/3UCodMM
Crypto Firm Plans First Buyback in Three Years as Shares Plunge; Japan's Monex announces repurchase of up to 4.67% of stock; Company's shares are down 40% this year amid crypto selloff
Kurt Schussler - Bloomberg
A Japanese crypto-exchange operator announced its first stock buyback in over three years after a selloff of its shares amid ongoing turmoil in the digital-currency market. Monex Group Inc. said it will repurchase up to 4.67% of its shares outstanding for a total of up to 5 billion yen ($34 million). Its last buyback was announced in August 2019.
/jlne.ws/3NXqbVS
City of London Bankers Push Back on Tax Even as UK Rewinds Surcharge Plans; Surcharge to be cut to shield banks from corporation tax rise; But bankers are still chafing against the UK tax regime
William Shaw - Bloomberg
The UK banking surcharge is set to fall but plenty of City of London bankers are still chafing at a tax regime they argue is one of the world's most onerous. Chancellor of the Exchequer Jeremy Hunt's plans to cut the surcharge on UK bank profits means their overall tax rate will rise to 28% from 27% when a simultaneous corporation tax rise takes effect. That's better than some feared at the height of the recent political and economic turbulence but it doesn't go far enough for many in the industry who fret the tax regime is uncompetitive in comparison to centers like New York and Dublin.
/jlne.ws/3UIWY2R
South Africa Secures Climate Loans at Fraction of Market Rates; Funding will cut future interest bill, finance minister says; Godongwana also highlights need to fix state logistics company
Loni Prinsloo and S'thembile Cele - Bloomberg
Some of the loans South Africa secured as part of an $8.5 billion climate finance package will cost a fraction of what it would have paid commercial lenders and will cut the country's future borrowing costs, Finance Minister Enoch Godongwana said. "When we get these loans, in fact they are between 500 and 400 basis points lower than we would have paid in the market," Godongwana said in an interview in Johannesburg on Thursday, without being more specific. "We would have raised that money anyway."
/jlne.ws/3hq3SM9
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| Miscellaneous | | Stories that don't quite fit under the other sections | Gen Z Employees See Digital Tools as a Way to Win at the Office; New research showed that 40% of 16 to 24-year-olds in London jobs find it easier to volunteer for key tasks and ask questions when working remotely.
Irina Anghel - Bloomberg
It's become one of the unwritten codes of the new hybrid office: that younger staff working from home have fewer opportunities to network and learn at work. The problem with that analysis? Younger staff don't believe it. New research from King's College London showed that 40% of 16 to 24-year-olds with a workplace in the UK capital find it easier to volunteer for key tasks and ask questions when working remotely. Conversely, their older peers are more inclined to see working from home as a barrier to learning and networking.
/jlne.ws/3fUit26
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