| October 04, 2022 | "Irreverent, but never irrelevant" | | | | John Lothian
Publisher
John Lothian News | |
|
| | | | First Read | | |
| | 2022 Newsletter Subscriptions: | |
Hits & Takes
John Lothian & JLN Staff
John V. Rainbolt, one of the first CFTC commissioners who is credited with drafting the Commodity Futures Trading Act of 1974 that created the commission, has died at the age of 83. He was nominated by President Gerald Ford and confirmed by the Senate and served in a position no longer used, that of vice chairman.
Rainbolt was a Democrat and worked opposite Republican John Damgard, who was part of the administration team negotiating the deal.
Here is the obituary for Louis Bournakis. Bournakis, Louis P., age 95 of Lake Forest Illinois passed away on October 1, 2022. Beloved husband of Rhea (nee Annes), loving father of Peter L. (Stephanie) Bournakis and Catherine (Joseph) Waldeck. Proud grandfather of Alexandra (Cloie) McClellan-Bernard, Grace Bernard, Alexander Bournakis and Christopher Bournakis. Devoted son of the late Peter and Catherine Bournakis. Dear brother of Pauline Norris and the late Anita (Paul) Kezdi. Fond uncle to many. Family and friends will meet Friday, October 7, 2022 at Ascension of Our Lord Greek Orthodox Church 1207 Riverwoods Road, Lincolnshire, Il. 60069 for visitation from 10:00 am until time of the funeral service at 11:00am. Internment at Lake Forest Cemetery. Memorial donations to Ascension of Our Lord Greek Orthodox Church would be appreciated.
Intercontinental Exchange, Inc. named longtime ICE and LIFFE executive Caterina Caramaschi as head of combined global interest rates and equity derivatives product portfolio. Caramaschi, who has held the role of ICE's global head of equity derivatives since December 2020, has worked at ICE and formerly LIFFE for 21 years.
Abaxx Technologies Inc. announced that its SmarterMarkets™ podcast passed the one million download mark.
Qontigo CEO Sebastian Ceria was officially inducted into the National Academy of Engineering Class of 2021 for his work in the application of optimization tools to advance integer programming and financial engineering.
Katten's Gary DeWaal and Dan Davis have a new commentary titled, "CFTC Brings Enforcement Action against Digital Exchange and Natural Person Controller Suggesting Native Cryptoasset is a Commodity and Not a Security."
The FIA is holding an FIA Forum in Milan on October 19 to discuss regional issues and developments affecting listed and cleared derivatives. The FIA's Bruce Savage will start the day with an introductory statement and will be followed by Euronext Group's Fabrizio Testa, CEO of Borsa Italiana.
The Greenwood Project announced that summer 2023 applications are now live on their website. They ask if you know any high school and college students who would be a good fit for the program, please tell them to apply today and to go to greenwoodproject.org to apply.
Brian Gierke has been promoted to senior director product marketing at the CME Group, according to an update on LinkedIn.
The World Federation of Exchanges kicked off World Investor Week 2022 with its Focus publication zeroing in on the subject with commentary from exchange leaders across the world writing about how their exchanges are addressing investor education. Here are those leaders' contributions to Focus:
- Promoting Financial Education Builds Confidence in the Stock Market: GPW Foundation; Fostering knowledge of the stock exchange, capital and commodity markets and their institutions builds public confidence, which is why educating, promoting and informing people about the market are among the key objectives of the Warsaw Stock Exchange.
- TWSE Cracks Down With Anti-Fraud Campaign; TWSE Chairman Sherman Lin is helping to lead an anti-fraud battle in an increasingly complex financial world.
- A Commitment to Inclusive Finance Starts with Education; The next-gen investor is different from their elders. With zero-cost commissions, the ease of order executions and the availability of trading tools, retail investors today can take greater ownership of their own wealth management needs and generate potential returns that were once realized by a smaller segment of market participants.
- JPX Introduces Its J-Quants Project; Shun Takato, Head of Fintech at JPX Market Innovation & Research, Inc., talks about the company's educational project aiming to bring data-centric analysis to Japanese retail investors.
- The New Chapter of SET's Journey: SET Financial Literacy in Action; SET believes that good financial behaviors are the direct results of strong financial capabilities which stem from good financial education. Households with good financial health will ultimately result in a strong overall economy for the country.
- Taipei Exchange's Efforts on Financial Literacy; After the Covid-19 pandemic outbreak, we moved to virtual literacy activities instead and created a one-stop website called "Learning Investment from Home" to provide easy access to information. Going virtual let us break through the physical limitations and expand the education to wider young generation.
- PSE Seeks to Educate the Wider Public; PSE President and CEO Ramon Monzon says improving financial literacy will always be a core service offered by the exchange.
- How Exchanges Can Drive Sustainable Finance; HKEX Co-Head of Markets Glenda So looks at the key role exchanges can play in overcoming the challenges surrounding sustainable finance.
- Financial Literacy Programs in Dhaka Stock Exchange; The Dhaka Stock Exchange Ltd. was established with an aim to be the leading exchange in the region and a key driver of economic growth with state-of-art technology and world class service. Since the inception, DSE has understood the necessity to function as a center for promoting financial literacy among investors
- Promoting Access and Inclusivity in Financial Literacy; With the acceleration of digitalisation and the democratisation of data, retail investors are increasingly exposed to and inundated with information which may or may not be relevant. It is therefore crucial that investors are properly educated.
- National Stock Exchange of India Financial Literacy Initiatives; The Indian securities market aims to stimulate India's growth story by creating investment opportunities, enabling access, and empowering all its stakeholders. To this end, empowering investors through education and awareness is of prime importance for the National Stock Exchange of India.
- A Multi-Dimensional Approach to Financial Literacy in Nigeria; NGX's Irene Robinson-Ayanwale talks about the crucial importance of educating Nigeria's young people in financial matters.
- Advancing Inclusive Economic Progress through Financial Literacy; We've formalized our commitment to increasing market participation and providing the necessary resources for underserved communities. By providing underserved communities with resources to enhance their financial literacy, we can better empower them to participate in an ecosystem that supports and sustains their growth.
- Financial Literacy for the Next Generation of Market Participants: CME; In many countries, much of the focus on financial literacy has been around personal finance - the basics of saving, spending and investing. However, financial literacy needs to encompass more than an understanding of what credit card is best for your needs or why it is important to save for retirement - it has to include the fundamentals of how our global economy and financial markets function.
- Financial Literacy in a New Context; Bolsa Santiago CEO José Antonio Martínez talks about the exchange's efforts to educate the whole Chilean community on financial matters.
- A Whole Week of Educating Content; Over the seven days of the World Investor Week, there will always be something new to be learned on the social media channels of SIX. The content will be very diverse and therefore suitable for all age groups. And there are even prizes to be won.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
*****
The Deutsche Börse Photography Foundation is bringing a retrospective of the work of Chicago street photographer Vivian Maier to The Cube, Frankfurt/Eschborn from October 14, 2022, to January 15, 2023. You can view the exhibition as part of a guided tour and on "Open Saturdays" on November 19, 2022, and January 14, 2023. The film "Finding Vivian Maier" will be shown on October 18 and November 20, 2022. Learn more about Maier and the exhibition here. ~ SAED
++++
MWE SHORT: Donnie Roberts - Don't Short Yourself
JohnLothianNews.com
In this video from MarketsWiki Education's World of Opportunity event in Chicago, Small Exchange CEO Donnie Roberts provides tips on how to avoid becoming the old timer at the end of the bar who laments what could, or should, have been.
Watch the video »
++++
John Vernon Rainbolt II
Washington Post
John Vernon Rainbolt II was born May 24, 1939, in Cordell, Oklahoma to John V. and Mary Alice Power Rainbolt. He attended the University of Oklahoma where he received his B.A. degree in English before continuing on to obtain his law degree from the University of Oklahoma College of Law. He volunteered in the U. S. Army and was trained as an airborne infantryman. Following completion of Officer Candidate School, he was commissioned as a platoon leader in the 3rd Infantry (Old Guard) whose responsibilities include guarding The Tomb of the Unknown Soldier. At the end of his military service, he worked on Capitol Hill as senior staff to former Rep. Graham Purcell (D-TX) before moving on to serve as Chief Counsel to the Committee on Agriculture of the US House of Representatives. While there, he was credited with drafting the "Commodity Futures Trading Act of 1974" legislation which created the Commodities Futures Trading Commission (CFTC). He was later nominated to the Commission by President Gerald Ford and received Senate confirmation in 1975, serving as Vice Chairman of the CFTC.
/jlne.ws/3yan5qQ
****** John Damgard may be the last man standing who helped create the CFTC.~JJL
++++
Wall Street Bikes for Autism Research in Rain-Soaked Ride; Riders from NYSE, Virtu, FTX tackle rough NY weather and hills; Annual event raises more than $1 million for the cause
Katherine Doherty - Bloomberg
It took two bicycles to get the New York Stock Exchange's chief operating officer across the finish line of the trading industry's fall ride for autism research. "I came in dead last, but was still greeted with smiles," said Michael Blaugrund, whose chain snapped on his first bike at mile seven, prompting the event to send a "rescue vehicle" that brought him to a replacement. "Even in the face of a torrential downpour, the Wall Street community came out to support people in need," he said.
/jlne.ws/3C4bZ7F
****** A little rain, or a broken chain never stopped this industry from doing good.~JJL
++++
The World's Most Important Market Needs Some Work; Regulators should take steps to ensure that trouble in the Treasury market doesn't threaten the broader financial system. Making banks more fragile isn't one of them.
The Editors - Bloomberg
Treasury securities play a crucial role in global finance. They're widely viewed as a close substitute for dollars, a safe place to park everything from a company's cash to a central bank's reserves. They provide a benchmark for determining the value of a vast array of assets, including mortgages, corporate bonds and shares in public companies. They're the ultimate expression of the reliability of America's capital markets. It's thus troubling that the Treasury market has faltered at critical moments, raising fears of further disruptions as central banks end a long period of easy money. Authorities can and should take steps to ensure the market works as smoothly as possible — but they must be mindful not to weaken the broader financial system in the process.
/jlne.ws/3Cxfqpa
****** Sometimes enacting regulation reminds me of playing a giant game of Jenga.
++++
The Trading Show Chicago 2022: Nine Takeaways
Chuck Mackie - Medium
The Trading Show was back at Navy Pier in Chicago on September 28 and 29 and revealed a vibrant and innovative range of developments in everything from trading infrastructure to new digital assets. Last year I came away with eight lessons learned at The Trading Show so this year I'm going one better. Here are my nine takeaways from this year's event.
/jlne.ws/3yhfnuT
***** Chuck Mackie doing his Chuck Mackie thing.~JJL
++++
Monday's Top Three
Our top story Monday was Futures Giant CME Considers Brokerage, Taking Cue From Crypto Rival FTX, from The Wall Street Journal. Second was CHICAGO CALLING: Shout-out for Charlie Carey and the Southside Irish, from The Irish Echo. Third was For a Woman on Wall Street, Crude Jokes Weren't the Worst of It, a review of "Bully Market," by Jamie Fiore Higgins, in The New York Times.
++++
MarketsWiki Stats
27,024 pages; 241,020 edits
MarketsWiki Statistics
++++
|
| | | |
| All MarketsWiki Sponsors» | | | | | | | John Lothian News (JLN) is the news division of John J. Lothian & Company, Inc. (JJLCO). The online media and financial services firm is staffed by derivatives industry, journalism and technology professionals. | | | | | | | John Lothian News Editorial Staff: | | | John Lothian
Publisher | | | Sarah Rudolph
Editor-in-Chief
| | | Jeff Bergstrom
Editor
| | |
|
| |
|
|
| Lead Stories | Joe Biden's administration urges Congress to speed up crypto rules; Top US financial regulators call for new laws to cover digital assets such as bitcoin
Scott Chipolina and Kiran Stacey - Financial Times
The Biden administration has called on Congress to pass laws to clarify how cryptocurrencies should be regulated, as officials warned that delays on Capitol Hill could put investors at risk. The US Financial Stability Oversight Council — a group of the country's top financial regulators including the Treasury — issued a report on Monday urging politicians to come to agreement on a number of areas including how to regulate bitcoin and other crypto assets sold on the spot market.
/jlne.ws/3UZhopi
IMF warns funds with illiquid assets pose risk to financial stability; Pressure of increasing withdrawals could spur forced asset sales
Adrienne Klasa and George Hammond - Financial Times
The IMF has warned that a surge of outflows from funds allowing frequent investor withdrawals but holding hard-to-sell assets could amplify market stress and "potentially undermine the stability of the financial system". Withdrawals from open-ended bond funds have increased in recent months, the IMF noted, and another shock could "trigger further outflows", with a mismatch between redemptions and illiquid holdings posing a "major potential vulnerability".
/jlne.ws/3M3XTaZ
Bad Time for Markets Has Been Good for Brokerages; Firms such as Charles Schwab and Robinhood still have a lot to gain from rising interest rates, even if small investors aren't trading as much
Telis Demos - The Wall Street Journal
It was a tough quarter for small investors in stocks. But for shares of mass-market advisers and brokerages, it was pretty great. Shares of online brokerage providers such as Charles Schwab, Interactive Brokers Group and Robinhood Markets were all up by double digits in the third quarter, as were brokers providing investment advisory and management services such as LPL Financial and Raymond James. Morgan Stanley, owner of E*Trade, was up almost 4%. Meanwhile, the KBW Nasdaq Bank index was down 5% in the quarter.
/jlne.ws/3fuPjpw
How Derivatives Wreaked Havoc on the U.K. Bond Market; The Bank of England is buying government bonds in an attempt to calm markets.
The Wall Street Journal
Turmoil in the U.K. bond market created a feedback loop that left investors like pension funds short on cash and rippled out into other markets. WSJ's Chelsey Dulaney explains the type of investment at the heart of the crisis. Illustration: Ryan Trefes
/jlne.ws/3CwuR0M
Crypto Could Threaten Financial System, Federal Risk Panel Warns; Regulators' report in response to President Biden's order highlights cryptocurrency vulnerabilities
Andrew Ackerman and Paul Kiernan - The Wall Street Journal
Risks tied to cryptocurrencies could grow rapidly and eventually threaten the broader financial system, a panel of senior U.S. officials warned Monday, calling for tougher oversight of digital assets. The Financial Stability Oversight Council, chaired by Treasury Secretary Janet Yellen, said the crypto industry remains small compared with the overall financial system, but that could change quickly and exacerbate potential systemic risks.
/jlne.ws/3e2V5OO
Businesses Brace for Currency Chaos in Asia, a Region With a History of Crisis; A 1997 financial catastrophe casts a long shadow in countries that are seeing the value of their money plunge to record lows.
Daisuke Wakabayashi and Ben Dooley - The New York Times
Tigun Wibisana and Sandra Kok, who own a cafe in Malaysia, are facing an excruciating decision that could make or break their business of 14 years: Can they increase prices to cover rising expenses without driving customers into the arms of their bigger rivals? The cost of the coffee beans that the couple, who are married, buy is spiraling because they are traded globally in U.S. dollars, and the Malaysian ringgit has fallen to a 24-year low. Compound that with an inflationary spike in prices for butter and flour, essential ingredients for its pastries, and the shop's profits have plunged more than 25 percent this year.
/jlne.ws/3M6eMSz
Saudi Aramco chief sounds alarm over global oil capacity; Head of world's biggest producer says 'world should be worried' about supply limitations
Tom Wilson and Shotaro Tani - Financial Times
Global oil markets remain incredibly tight, the chief executive of the world's biggest crude producer has warned, as he said the world was too focused on the demand impact of a possible recession rather than the limitations of current supply. The comments from Amin Nasser, chief executive of Saudi Aramco, come as oil producer group Opec, headed by Saudi Arabia, prepares to announce what is expected to be a substantial cut to production on Wednesday to boost oil prices and preserve spare production capacity, particularly in the Gulf kingdom.
/jlne.ws/3e1PAjq
Russian oil price cap would save emerging markets billions, US says; Treasury study finds $160bn in lower annual costs as it pushes to cut Moscow's export revenues
James Politi - Financial Times
The US Treasury has estimated the G7's plan to cap the price of Russian oil exports could yield $160bn in annual savings for the 50 largest emerging markets, as Washington insists the scheme it has championed will keep a lid on energy costs around the world. The analysis was developed ahead of the IMF and World Bank's annual meetings next week, where high energy costs triggered by Russia's invasion of Ukraine will take centre stage as one of the heaviest burdens on the global economy. At the same time, the Opec+ oil producers' cartel is planning new cuts in supply at its meeting this week.
/jlne.ws/3MbVX0f
Saudi Arabia and Russia May Find Their Oil Pricing Power Limited; Reduced global demand may offset any supply cut by OPEC and its allies.
Clifford Krauss - The New York Times
Even if Saudi Arabia and other leading oil-exporting countries cut their production targets this week, spurning U.S. efforts to keep supplies flowing, the move may barely register in global oil prices. An output cut by Saudi Arabia and its allies would reinforce the growing perception that Crown Prince Mohammed bin Salman of Saudi Arabia and President Vladimir V. Putin of Russia are working closely together to manage oil markets. That is not what President Biden had in mind when he visited Saudi Arabia in July, shared a fist bump with Prince Mohammed and called for more production.
/jlne.ws/3Cwvzer
Top US regulators say crypto poses financial stability risks
Fatima Hussein - Associated Press News
Top regulators on Monday recommended a series of new safeguards to ensure that a growing and unregulated cryptocurrency market doesn't imperil U.S. financial stability. Among seven major recommendations, regulators called on Congress to pass legislation that would address the systemic risks caused by the growth of stablecoins, which are a form of cryptocurrency pegged to the price of another financial asset, like the U.S. dollar or gold.
/jlne.ws/3SRkjhR
US Risk Watchdog Asks Congress to Name Crypto Spot Market Regulator
Jesse Hamilton - CoinDesk
The top U.S. financial regulators are warning of dangerous holes in the oversight of crypto and are asking Congress for more powers, including settling which agency will oversee the bulk of trading in bitcoin and other non-security tokens, according to a report unanimously approved at a meeting of the Financial Stability Oversight Council (FSOC) on Monday. The council's report flags several of the unregulated hazards in the digital assets industry, including the spot market for bitcoin (BTC). These latest recommendations from the group, which is led by Treasury Secretary Janet Yellen, effectively bolster the two leading efforts in crypto legislation: a bill that would put the Commodity Futures Trading Commission (CFTC) in charge of overseeing that spot market, and another that would establish rules for stablecoin issuers.
/jlne.ws/3CwUI8S
Credit Suisse CDS hit record high as shares tumble; Swiss bank fails to calm concerns as cost of buying its credit default swaps soars
Robert Smith and Owen Walker - Financial Times
The cost of buying insurance against Credit Suisse defaulting on its debt soared to a record high on Monday, as the Swiss bank failed to calm market concerns around the strength of its balance sheet. Traders and investors rushed to sell Credit Suisse's shares and bonds while buying credit default swaps (CDS), derivatives that act like insurance contracts that pay out if a company reneges on its debts.
/jlne.ws/3M8w0yz
SEC Approach Is 'Threatening the Entire Ecosystem': Former CFTC Commissioner; Brian Quintenz said a better path would be possible "if the SEC was serious."
André Beganski - Decrypt
Brian Quintenz said he understands why the crypto industry isn't happy with the Securities and Exchange Commission (SEC)—but doesn't see regulation itself as the problem. The former CFTC (Commodity Futures Trading Commission) commissioner said the regulatory environment for crypto is cumbersome in its current form, and in an interview at Mainnet 2022, he told Decrypt why some are looking towards the CFTC for a different approach.
/jlne.ws/3CcLb5w
NYC Offices to See $50 Billion in Value Wiped Out, Study Says; Researchers estimate the value of the city's stock of office buildings will remain well below pre-pandemic levels given the rise in remote work.
Lizzie Kane - Bloomberg
New York office buildings are facing a potential $50 billion wipeout of value thanks in part to remote work. The values of those properties declined nearly 45% in 2020 and are forecast to remain roughly 39% below pre-pandemic levels due to the persistence of flexible work policies that gained traction during the crisis, according to a new study from the National Bureau of Economic Research. As the Covid-19 pandemic shuttered office buildings and forced people to switch to a remote work environment, many offices sat vacant and still do, even as companies try to entice employees to return. Roughly 46% of workers in the New York metro area were back at their desks in the week ended Sept. 21, according to card-swipe data from Kastle Systems.
/jlne.ws/3M4PSm7
Housing Conversions Will Be a Fix for Empty Offices—but Not Yet; Old workplaces could be redeveloped into residential property, but it will take time for the numbers to add up in many city centers
Carol Ryan - The Wall Street Journal
City landlords are fighting a losing battle against the home office. Converting old workplaces into housing is a solution, but asset values need to fall further for this to happen in big numbers. Most offices haven't returned to normal since Covid-19 lockdowns were lifted. Occupancy in top U.S. office markets is almost half prepandemic levels, employee swipe-card data from Kastle Systems shows. In Europe, occupancy levels are 43% on average, according to Savills.
/jlne.ws/3CasMGt
Greenwashing Enters a $22 Trillion Debt Market, Derailing Climate Goals; Sustainability-linked bonds let companies borrow cheaply if they meet environmental, social, and governance targets. A Bloomberg News analysis found those goals are weak
Priscila Azevedo Rocha, Akshat Rathi, and Todd Gillespie - Bloomberg
Fashion giant Chanel, known for its iconic perfume and tweed suits, keeps up to date with changing tastes. These days that means showing consumers—and investors—that it's doing its part to combat climate change. So when the company needed to borrow money two years ago, it turned to a hot new financial product: sustainability-linked bonds, or SLBs. The investors who purchased Chanel's EUR600 million ($589 million) of bonds also got a promise: If the company didn't meet certain climate goals, it would pay them millions of euros more. In other words, they'd pay a penalty for not being green. Philippe Blondiaux, Chanel's chief financial officer, said at the time that the deal "was a great way to align our financing strategy with our company strategy centered around our sustainability targets."
/jlne.ws/3ydSjNE
Fund Managers, Regulators Wrestle Over Plans to Tighten ESG Rules; Financial firms and data providers skeptical of proposed rules to clarify environmental, social and governance standards
Shane Shifflett - The Wall Street Journal
Regulators in the U.S. and Europe are trying to tighten rules on popular environmental, social and governance investment products, triggering a backlash from investors and businesses. ESG funds have boomed in recent years, exceeding $350 billion in net assets in 2021 in the U.S., as investors look to fund companies that are addressing climate change and other issues. But murky disclosures and lax standards are driving regulators to tighten the rules.
/jlne.ws/3SyqY0B
Honouring National Day for Truth and Reconciliation
John McKenzie, TMX Group Ltd. - LinkedIn
Today marks the 2nd National Day for Truth and Reconciliation (NDTR)/Orange Shirt Day, a day for people across Canada to honour the generations of people most deeply and indelibly impacted by the devastating history of residential schools. To mark this important day, we were pleased to welcome The Indian Residential School Survivors Society (IRSSS), a community-led organization that offers critical support services for residential school survivors, to open the market this morning. Earlier this week, as part of TMX's ongoing reconciliation journey, we partnered with IRSSS on a panel event called Moving Forward with Reconciliation, where participants shared their personal experiences with residential schools, and discussed the generational impacts on their families and communities.
/jlne.ws/3rvDMsZ
Hedge Fund Giant D.E. Shaw Plans to Raise Fees as High as 40%; Performance fees for top funds to rise by 5 percentage points; Shaw will return a substantial amount of profits at year-end
Hema Parmar - Bloomberg
D.E. Shaw & Co. is hiking fees for its three biggest hedge funds to as high as 40% -- making them among the most expensive in the industry. The firm, with about $60 billion under management, is raising performance fees -- its cut of investor profits -- for the Oculus, Composite and Valence funds by 5 percentage points starting in July, according to a person familiar with the matter. Investors will pay 30%, 35% and 40% of profits for the funds, respectively, while the fee on managed assets remains unchanged.
/jlne.ws/3UZ7HY0
'Worse damage than the financial crisis in 2008.' Wealthy countries could trigger a global recession, UN says
Tristan Bove - Fortune
Governments around the world are determined to bring down inflation whatever the cost, but a growing chorus of voices is pointing out that aggressive monetary policies could have some serious and long-lasting consequences on the world economy. Central banks in the U.S., Europe, and the U.K. have pursued relentless monetary tightening policies this year to reduce domestic inflation, but transnational institutions including the World Trade Organization and the International Monetary Fund have warned that this approach could push the world into a long period of low economic growth and persistently high prices, according to a Monday report.
/jlne.ws/3RAcWdF
Court Rules CFTC Legally Served Ooki DAO Through Help Bot
Nikhilesh De - CoinDesk
The Commodity Futures Trading Commission (CFTC) can serve a decentralized autonomous organization (DAO) through a website help bot and forum post, a federal court ruled Monday. The CFTC appropriately served Ooki DAO, which it alleges offers illegal leveraged and margined trades without a Futures Commission Merchant designation or know-your-customer program, on Sept. 22, 2022, the District Court for the Northern District of California further ruled. The DAO has three weeks to respond from that date, meaning if no one responds by Oct. 13, the CFTC could win a default judgement.
/jlne.ws/3V1YePK
EU's ESMA Raises Alarm Bells Over Growing Crypto Use as It Prepares for New Powers
Jack Schickler - CoinDesk
Growing crypto take-up by investors means future crypto crashes could affect conventional financial markets, the European Securities and Markets Authority has warned in a paper published on Tuesday, noting the risk of consumer rip-offs and operational failures. The document offers a first analysis of how officials at the agency see risks in the crypto market, as they prepare to take on new duties under the European Union's Markets in Crypto Assets Regulation, MiCA.
/jlne.ws/3SA3IzD
Credit Suisse's Options Worsen as Markets Mayhem Takes Toll
Marion Halftermeyer and Myriam Balezou - Bloomberg
Dixit Joshi won't forget his first day as Credit Suisse Group AG's chief financial officer in a hurry. And yet the experience won't have been entirely unfamiliar for the former Deutsche Bank AG high flier.
/jlne.ws/3fHGNnl
How big is the capital hole at Credit Suisse?
Owen Walker and Robert Smith - Financial Times
Credit Suisse has spent the past few days battling social media rumours about the strength of its balance sheet and trying to convince investors and clients that its plummeting share price and spiking credit default swaps are not telling the true story of the bank's health. At the centre of the storm is a simple question that analysts and market commentators have been asking ever since Credit Suisse announced over the summer that it would strip back its investment bank and cut out SFr1.5bn of costs: How big will the capital hole actually be? Last month analysts at Deutsche Bank estimated the drastic moves would leave the Swiss lender needing to find an additional SFr4bn due to restructuring costs, the need to grow other business lines and regulatory pressure to strengthen its capital ratios.
/jlne.ws/3EfCny9
ECB Says European Banks Are Too Optimistic About Macro Risks; Ukraine war is developing into persistent macro risk: Enria; Lenders shouldn't expect low default rates to continue: Enria
Steven Arons and Marton Eder - Bloomberg
European banks are not taking looming economic risks seriously enough as they enjoy the revenue-boosting benefits of higher interest rates, a top European Central Bank official said. There is "a certain reluctance on the side of banks to seriously engage in supervisory discussions" about economic risks, ECB Supervisory Board Chairman Andrea Enria said Tuesday according to prepared remarks for a speech in Vienna. That attitude is unacceptable because "the Russian invasion of Ukraine is developing into a persistent and fully-fledged macroeconomic shock," which requires supervisors "to exercise extreme caution," he said.
/jlne.ws/3e7JzSr
Conjuring Profits Out of Thin Air Can Make Capital Disappear; The end of the free money era should also mark the end of the adjusted profit free-for-all.
Chris Bryant - Bloomberg
What's a profit? A recent ill-tempered television appearance by the co-founder of home-flipper Opendoor Technologies Inc., Keith Rabois, showed just how far we have drifted from a common understanding of earnings. Rabois, a Miami venture capitalist, was irritated by his interlocutor's (not unreasonable) suggestion that Opendoor is loss-making. Net losses total $1.7 billion since inception, according to the latest accounts, and the quarter that just ended will likely be ugly due to falling house prices.
/jlne.ws/3C6WQCP
ISDA CEO discusses challenges associated with trade reporting requirements for OTC derivatives; Scott O'Malia, ISDA's chief executive officer, provides insights into how improving consistency within reporting will allow greater transparency for derivatives trading.
Wesley Bray - The Trade
In a recent blog post, ISDA CEO Scott O'Malia provided informal comments on important over-the-counter (OTC) derivatives issues including how ISDA is seeking to make the market safer and more efficient. O'Malia highlighted that ongoing regulatory change has been met with the challenge of inconsistency in the way rules were drafter and implemented, which is having an impact on both market participants and regulators.
/jlne.ws/3yBNQVp
|
| | | |
|
| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Gazprom Ready to Ship Gas Via Shelved Nord Stream 2 Pipeline; One line of Nord Stream 2 may be undamaged after attacks; Leaks have stopped in three other strings of Nord Stream pipes
Bloomberg
Gazprom PJSC told European gas customers that part of the damaged Nord Stream network could still transport fuel -- but only on the new pipeline that Germany ditched in February in protest at Russia's aggression toward Ukraine. The Nord Stream 2 pipeline was set to go into operation earlier this year when Germany pulled the plug on the project just before Russia's invasion. The pipeline, which was set to double the capacity of Nord Stream, had been sanctioned by the U.S. and faced strong opposition in parts of Europe, forcing Germany to eventually give up on the project.
/jlne.ws/3EenFra
Record 83% of Ukrainians want NATO membership -poll
Reuters
A record 83% of Ukrainians would like their country to join NATO, a Kyiv-based opinion pollster said on Monday, citing a survey conducted after Kyiv applied to join the military bloc. The Oct. 1-2 poll of 2,000 respondents by Rating Group was conducted after President Volodymyr Zelenskiy announced on Friday that Ukraine was submitting an expedited application for NATO membership. Rating Group said the percentage of those supporting NATO membership was the highest ever recorded by a survey in Ukraine. Only 4% said they would vote against joining the bloc and 9% said they would not vote.
/jlne.ws/3RCj314
More Russians Flee Than Join Putin's Army After Call-Up for War; Shoigu says 200,000 have been conscripted since Sept. 21 order; Data shows in excess of 300,000 Russians went to nearby states
Nariman Gizitdinov and Helena Bedwell - Bloomberg
Far more Russians have fled abroad than have enlisted in the military since President Vladimir Putin announced a mobilization to bolster his faltering invasion of Ukraine. Defense Minister Sergei Shoigu said more than 200,000 people have been conscripted into the army since Putin's Sept. 21 order for a partial call-up, Russian news services reported Tuesday.
/jlne.ws/3M6D8LT
|
| | | |
|
| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Global Capital names Eurex "European Derivatives Exchange of the Year"
Eurex
Once again, the Global Capital Award team has invested months of work and market consultations to identify the best players in the derivatives market. We are all the more proud and honored to have been named "European Derivatives Exchange of the Year" by these experts for the second year in a row. This was in recognition not only of our product innovations, which build on our world-leading position in index products, but also of our strong and continuous innovations to help our clients overcome their market challenges.
/jlne.ws/3Ee03Tw
American Financial Exchange® Third Quarter 2022 Volume Surges, Reporting Highest Monthly Volume since Second Quarter 2020; Average Daily Volume in Q3 up 64% from Q2 2022
AFX
The American Financial Exchange (AFX), an electronic exchange for direct lending and borrowing for American banks and financial institutions, announced third quarter 2022 average daily volume (ADV) of $1.919 billion, setting its best quarterly result since 2020 in the early days of the pandemic. Third quarter 2022 ADV rose 64% percent from second quarter 2022 ADV levels. AFX also added twelve new members in the third quarter, indicating greater interest and participation in its lending platform and AMERIBOR®.
/jlne.ws/2VWhP6T
OCC September 2022 Total Volume Up 12% Year-Over-Year, Third Highest Month on Record
OCC
OCC, the world's largest equity derivatives clearing organization, announced today that year-to-date average daily volume through September 2022 was 40.8 million contracts, up 5.1 percent compared to year-to-date average daily volume through September 2021. Total volume was 915.2 million contracts, up 12.0 percent compared to September 2021 and the third highest month in OCC's history. September 2022 volume surpassed the previous third highest month, August 2022, by 0.3 percent.
/jlne.ws/3RARzZU
Deutsche Börse Photography Foundation shows the exhibition: "Vivian Maier. street photographer
Deutsche Börse
The retrospective of the American photographer can be seen from October 14, 2022 to January 15, 2023 in The Cube, Frankfurt/Eschborn. The exhibition can be visited as part of guided tours and on the "Open Saturdays" on November 19, 2022 and January 14, 2023. A press tour will take place on October 13, 2022 at 11 a.m. In cooperation with the Arthouse Kinos Frankfurt, the cinema film "Finding Vivian Maier" will be shown on October 18 and November 20, 2022.
/jlne.ws/3SA9WiZ
The Spanish stock exchange opens the trading session Ringing the Bell for Financial Literacy; The Governor of the Bank of Spain, Pablo Hernández de Cos, led the event, which is part of the Ring the Bell For Financial Literacy initiative.
BME-X
Today the Spanish Stock Exchange marked the start of the trading session Ringing the Bell for Financial Literacy. The event, which was held at the Barcelona stock exchange, is part of the Ring the Bell for Financial Literacy initiative, promoted by IOSCO and WFE, in which more than 70 stock exchanges around the world will participate throughout this week. BME thus joins the Financial Literacy Day celebrations and the " Finanzas para todos" (Finance for all) initiative, promoted by the Spanish securities market supervisor - CNMV and the Bank of Spain since 2008.
/jlne.ws/3rwAqG9
CME Group Reports 36% ADV Growth in September 2022 and 26% Rise in Q3; All-time record monthly ADV for Equities and FX; Record SOFR futures and options ADV, OI in September and Q3
CME
CME Group, the world's leading derivatives marketplace, today reported its September and Q3 2022 market statistics, showing average daily volume (ADV) increased 36% to 25.7 million contracts in September, representing the company's highest September ADV on record. Q3 ADV increased 26% to 22.4 million contracts, the company's fourth-highest quarterly volume ever.
/jlne.ws/3M2bGyY
Reduction of the Listing Schedule for all MAC SOFR Swap Futures, Eris SOFR Swap Futures, and Eris BSBY Futures Contracts
CME
Effective Sunday, October 30, 2022 for trade date Monday, October 31, 2022, and pending all relevant Commodity Futures Trading Commission ("CFTC") regulatory review periods, The Board of Trade of the City of Chicago, Inc. ("CBOT" or "Exchange") will reduce the listing schedule for all MAC SOFR Swap Futures, Eris SOFR Swap Futures, and Eris BSBY Futures contracts as noted in Exhibit A below (the "Contracts") for trading on the CME Globex electronic trading platform ("CME Globex") and for submission for clearing via CME ClearPort. Specifically, the listing schedule of the Contracts will be reduced from three (3) to two (2) quarterly months on a rolling basis. Currently listed contract months of the Contracts shall remain available for trading and clearing.
/jlne.ws/3V3oV6H
NSE Indices launches two new target maturity indices
NSE
NSE's index services subsidiary, NSE Indices Limited today launched two new target maturity indices namely, Nifty SDL Plus AAA PSU Bond Jul 2033 60:40 Index and Nifty AAA PSU Bond Plus SDL Sep 2026 50:50 Index. Both indices follow target maturity structure with maturity dates of July 29, 2033, and September 02, 2026 respectively.
/jlne.ws/3UYzAzj
Daily TAQ: new value to be added to Security Type field
NYSE
The Daily TAQ Master file is being enhanced to include a new identifier ('ETS' = Single-Security ETF) in the existing Security Type field (field 4) effective October 31, 2022.
/jlne.ws/3fukdhN
Updates To LME Group Fees And Charges 2022
LME
This Notice sets out certain updates to the fees and charges for LME and LME Clear (together the "LME Group") that will take effect from 3 October 2022.
/jlne.ws/3vimcfa
TMX Group Thanksgiving Holiday Market Closures
TMX
Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange and Montréal Exchange will be closed on Monday, October 10, 2022 for the Thanksgiving holiday. The Exchanges will re-open and resume regular trading on Tuesday, October 11, 2022.
/jlne.ws/3fHQnXl
|
| | | |
|
| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Abaxx Announces SmarterMarkets™ Podcast Passes One Million Downloads
Abaxx Technologies - Vancouver Sun
Abaxx Technologies Inc., (NEO: ABXX) (OTCQX: ABXXF) ("Abaxx" or the "Company"), a financial software company, majority shareholder of Abaxx Singapore Pte. Ltd., the Abaxx Commodity Exchange (ACX), announces SmarterMarkets™, its media platform producing a weekly podcast focused on redesigning markets and technology to better serve society, has surpassed 1 million downloads.
/jlne.ws/3UY8uZ4
Buy to Build: How Providers Help Make Unique Trade Surveillance Systems Possible
Ollie Cadman - LinkedIn
"Buy versus Build" was a dilemma that financial institutions traditionally faced when working to create modern surveillance systems or other key elements in the risk technology stack. What groups were trying to figure out was whether purchasing products and services was more cost-effective and future-proofed than building a unique risk management infrastructure in-house. Today, driven by the cloud and API revolutions, there's a broader array of possibilities with customizable products and services that can serve as the building blocks needed to create unique systems, replacing the traditional, build/buy decision with an integrated platform strategy; "buy to build."
/jlne.ws/3C7cyxw
Nobel Prize in Physics Is Awarded to 3 Scientists for Work in Quantum Technology; Alain Aspect, John F. Clauser and Anton Zeilinger were recognized for their experiments in an area that has broad implications for secure information transfer and quantum computing.
Isabella Kwai, Cora Engelbrecht and Dennis Overbye - The New York Times
The Nobel Prize in Physics was awarded to Alain Aspect, John F. Clauser and Anton Zeilinger on Tuesday for work that has "laid the foundation for a new era of quantum technology," the Nobel Committee for Physics said.
/jlne.ws/3RHZd4Q
SIX launches municipal bond pricing data through Tradeweb's Ai-Price; The service provides US municipal bond pricing via Tradeweb's machine learning and data science models, combined with proprietary data from the firm's electronic marketplace.
Laurie McAughtry - The Trade
As the turmoil in the fixed income markets pushes firms to look further afield for alternative investment options, municipal bonds have become a surprise hotspot. Although it's been a rough year for the municipal bond market, surging yields are attracting investment managers into the market to take advantage of the opportunity.
/jlne.ws/3V0OULL
|
| | | |
|
| Cybersecurity | | Top stories for cybersecurity | Department of Homeland Security Kicks Off Cybersecurity Awareness Month
Homeland Security
Throughout October, in recognition of Cybersecurity Awareness Month, the Department of Homeland Security is committed to raising awareness about how to combat the constant and ever-increasing threat from malicious cyber actors. Many of the Department's component agencies play a lead role in strengthening the nation's resilience across public and private sectors, investigating malicious cyber activity, and advancing cybersecurity alongside our democratic values and principles.
/jlne.ws/3RDau6a
The dread, sincerity and comedy of Cybersecurity Awareness Month
Tim Starks - The Washington Post
Ever since 2004, October has been Cybersecurity Awareness Month, created by the Department of Homeland Security and the nonprofit, industry-sponsored National Cybersecurity Alliance to ... well ... promote awareness of cybersecurity.
/jlne.ws/3fFPA9o
Public officials and business leaders on the global cybersecurity landscape
Tim Starks - The Washington Post
With nearly every aspect of our modern lives increasingly digitized, cybersecurity has surged in importance as a business, policy and national security priority. On Thursday Oct. 13 at 9:00 a.m. ET, Rep. John Katko (R-N.Y.), the ranking member of the House Homeland Security Committee, Jeanette Manfra, the Global Director of Risk & Compliance at Google Cloud and other influential leaders from the private and public sectors join Washington Post Live for conversations about one of the defining issues of our time.
/jlne.ws/3EfDwWt
|
| | | |
|
| Cryptocurrencies | | Top stories for cryptocurrencies | Even 'Safe' Stablecoins Might Pose Financial Stability Risk, New York Fed Says
Helene Braun - CoinDesk
The rise of Circle's USDC stablecoin - as opposed to the controversial tether (USDT) - is a threat to the broader financial system because it could increase the chance of run risks from smaller issuers, researchers at the Federal Reserve Bank of New York wrote in a new paper published Monday. "This substitution from tether into USDC illustrates a bigger concern - namely, that resilient stablecoins can amplify run risks from more fragile ones as they provide a convenient instrument to run to," the report said.
/jlne.ws/3ycMn7B
Binance to Train Law Enforcement on How to Stop Crypto Crime
Fran Velasquez - CoinDesk
Binance, the world's largest cryptocurrency exchange by trading volume, is putting in place a global training program to help stop crypto criminals, Matthew Price, the exchange's head of intelligence and investigations in the Americas, told CoinDesk TV's "First Mover" program on Monday, "It's the first industry-led initiative to provide training to law enforcement, regulators [and] prosecutors around the world, to tackle financial crimes and crimes that may occur using cryptocurrency," Price, a former Internal Revenue Service agent, said.
/jlne.ws/3V0fxAz
DeFi Project SushiSwap Finds a New Leader After Crypto Struggles
Muyao Shen - Bloomberg
Sushi DAO, the organization behind a once top decentralized cryptocurrency exchange, is banking on a new leader to reshape the struggling business. Jared Grey, elected "head chef," Sushi's equivalent to a chief executive officer, has an uphill climb. Several leaders have exited in the past year, and SushiSwap -- once an industry darling -- has seen the total value of cryptocurrency sent to the platform slide to about $500 million from a peak of $7 billion in November 2021, according to data tracker DefiLlama. Its native Sushi token has dropped more than 95% from an all-time high in March 2021.
/jlne.ws/3e3aq1T
Kardashian SEC Slap is Fresh Warning Shot Over Crypto Promotion; The agency provided a high-profile reminder to celebrities that it is keeping an eye on how digital tokens and other assets are pitched.
Misyrlena Egkolfopoulou and Allyson Versprille - Bloomberg
Celebrities looking to make a quick buck shilling cryptocurrencies got a reminder Monday that regulators are watching. The message came from the Securities and Exchange Commission, which announced that Kim Kardashian will pay $1.26 million to settle allegations that she broke US rules by promoting a crypto token on her Instagram, without disclosing to her followers that she was paid $250,000 to pitch it.
/jlne.ws/3V0giJV
This crypto ad got Kim Kardashian fined $1.26 million by the SEC
Tristan Bove - FORTUNE
Businesswoman and influencer Kim Kardashian has been fined $1.26 million for failing to disclose how much she was paid for an Instagram post touting a crypto asset. Kardashian is one of several celebrities and social media influencers to have shilled cryptocurrencies during the pandemic, and is far from the first to run afoul of the country's top financial regulator. The Securities and Exchange Commission announced on Monday that it had reached a settlement with Kardashian over an Instagram post from last year touting a crypto token sold by EthereumMax. Kardashian did not disclose that she had been paid $250,000 by EthereumMax for the post, violating SEC rules.
/jlne.ws/3EmEBvA
Kim Kardashian could be 'tip of the iceberg' for celeb crypto crackdown
Lydia Moynihan and Theo Wayt - NY Post
Kim Kardashian's $1.26 million fine from the Securities and Exchange Commission could just be the first shot in a broader regulatory volley against crypto-hawking celebrities, experts tell The Post. A-listers including Matt Damon, Tom Brady and Larry David, who appeared in ads for cryptocurrency exchanges during this year's Super Bowl — as well as stars like Mike Tyson and Reese Witherspoon who participated in so-called NFT drops — could be casualties of a crypto crackdown from the SEC.
/jlne.ws/3yBNgqH
What Is EthereumMax? Inside the Crypto Kim Kardashian Lost $1.2M Promoting
Danny Nelson - CoinDesk
Kim Kardashian's $1.26 million regulatory fine this week for improperly touting a cryptocurrency raises many questions, but a big one is this: what the heck is EthereumMax (EMAX), the token she shilled?
/jlne.ws/3UT16OG
What Ripple's Latest Win Means for Its Ongoing Fight With the SEC
Daniel Kuhn - CoinDesk
Last week, Ripple notched another procedural victory as part of its ongoing legal defense against the U.S. Securities and Exchange Commission, which sued the crypto firm and several of its executives in 2020 for the unregistered sale of $1.3 billion worth of XRP.
/jlne.ws/3Cxnx4I
Bankrupt Crypto Firm Celsius Sets Dates for Auction of Assets; Final bid deadline will be Oct. 17, according to a filing; Bankman-Fried is reportedly considering bidding for assets
Joanna Ossinger and Olga Kharif - Bloomberg
Bankrupt cryptocurrency lender Celsius Network Ltd. has set dates for the auction of its assets. Celsius will have a final bid deadline of Oct. 17 at 4 p.m., with an auction if necessary on Oct. 20 at 10 a.m., according to a filing with the US Bankruptcy Court for the Southern District of New York dated Monday.
/jlne.ws/3fuKPzc
Crypto Winter's Impact on NFT Markets
CoinDesk
The value of non-fungible tokens (NFTs) has fallen nearly 83% since the beginning of the year, according to Arca data. Nicole Sales Giles, Business Director of Digital Art Sales and NFTs at Christie's, discusses the impact of crypto winter on the collectibles and digital art market.
/jlne.ws/3SNTdbm
|
| | | |
|
| Politics | | An overview of politics as it relates to the financial markets | Treasury Creates Racial Equity Committee to Narrow Economic Disparities; A new advisory group will help guide the Biden administration's efforts to promote economic equality.
Alan Rappeport - The New York Times
The Biden administration is deepening its effort to focus on reducing racial inequity with the formation of a new advisory committee that will help the Treasury Department carry out policies that aim to narrow economic disparities faced by communities of color.
/jlne.ws/3M2fkc8
This 401(k) bill in Congress would allow risky assets in retirement plans
Brett Arends - MarketWatch
Senators Pat Toomey, Tim Scott and Peter Meijer have just proposed a bill in Congress that would allow 401(k) plans to stretch beyond traditional investments like stocks and bonds. If their Retirement Savings Modernization Act became law, 401(k) plans could start offering not just things like commodities, but even "hedge funds," "venture capital," "digital assets" (laughter), and — literally - "any fund, commingled account, or pooled investment vehicle that invests in any investment."
/jlne.ws/3rqLLr1
Platinum Executives' Fraud Convictions Intact After Supreme Court Rejection
Greg Stohr - Bloomberg
The US Supreme Court left intact the fraud convictions of Platinum Partners LP co-founder Mark Nordlicht and former co-chief investment officer David Levy, refusing to hear arguments that they should be awarded a new trial. The men said a federal appeals court was wrong to reinstate the convictions last year after a trial judge threw out the jury's guilty verdict. The New York-based 2nd US Circuit Court of Appeals ruled that U.S. District Judge Brian M. Cogan had overstepped his authority.
/jlne.ws/3yAMOJh
Supreme Court To Hear Cases That Could Reel In Social Media Companies' Immunity
Matt Shuham - HuffPost
The Supreme Court on Monday announced that it would hear two cases this term that could significantly change the nature of content moderation on the internet. The court has agreed to hear Gonzalez v. Google and Twitter v. Taamneh. Both cases concern whether tech companies could be held legally liable for what users post on their platforms, as well as for content that users see because of the platform's algorithm.
/jlne.ws/3M1zfYK
When conspiracy theorists run countries; The paranoid fantasies of Vladimir Putin and others increase dangers for the world
Gideon Rachman - Financial Times
I used to think conspiracy theories were the refuge of the powerless and the uneducated. The conviction that dark and secretive forces are manipulating world events was the mark of an outsider, surfing the internet or shouting in the streets. In the corridors of power they knew better. As British civil servants like to murmur, when things go wrong, it's usually "a cock-up, not a conspiracy".
/jlne.ws/3C9SvP4
|
| | | |
|
| Regulation & Enforcement | | Stories about regulation and the law. | Top Wall Street Watchdogs to Congress: Give Us More Power to Police Bitcoin
Allyson Versprille - Bloomberg
The top US financial regulators want Congress to give them new powers to directly oversee trading in Bitcoin, the world's largest cryptocurrency. In a Monday report, the heads of the Federal Reserve, the Treasury and other leading financial watchdogs said the government has limited ability to regulate crypto assets that aren't covered by securities laws. Although many tokens fall under the Securities and Exchange Commission's rules, some, like Bitcoin, are not directly under any federal agency's jurisdiction.
/jlne.ws/3fH5gcw
FMA's KiwiSaver 2022 annual report shows scheme's resilience
Financial Markets Authority
KiwiSaver funds under management have shown net growth of 10% to $89.7 billion for the year ended 31 March 2022, despite the retirement savings scheme navigating another turbulent period for global markets. After its 15th year, KiwiSaver's size is now equivalent to around 25% of national GDP (up from 15% of GDP in 2017).
/jlne.ws/3rtef3K
OPEC+ Production Cut Poses New Threat to Biden as Election Nears; 'Higher prices are bad news for Democrats,' analyst says; Limited options include more oil reserve releases, export bans
Ari Natter - Bloomberg
Amid what would become a 98-day streak of declines, President Joe Biden was quick to take credit in August over one of his most serious political foes: high gasoline prices. It was a victory lap that may soon prove premature. More than a month after tweeting he had vanquished "Putin's price hike at the pump," Biden faces forces that even the US government can't match. The OPEC+ alliance of oil producing countries are poised to cut production by more than 1 million barrels a day to bolster global oil prices. A decision won't be made until Wednesday, but the prospect caused crude to surge in excess of 6% before settling just below $84 a barrel in New York.
/jlne.ws/3RGVSD6
Statement of Commissioner Kristin N. Johnson Regarding Unregistered Crypto Futures Platform, Price Manipulation, and Failure to Comply with AML/KYC/CIP Obligations
CFTC
The Commodity Futures Trading Commission (CFTC) today filed a complaint in the U.S. District Court for the Southern District of Florida charging Adam Todd and companies he controls (Digitex LLC, Digitex Limited, Digitex Software Limited, and Blockster Holdings Limited Corporation, collectively d/b/a Digitex Futures) with illegally offering digital asset futures, including bitcoin and ether futures, failing to register as a futures commission merchant (FCM) and comply with the Bank Secrecy Act, and manipulating and attempting to manipulate a digital asset token (DGTX) issued by Digitex Futures.
/jlne.ws/3C7qgAt
CFTC Charges Digital Asset Derivatives Platform and Miami Resident with Facilitating Unlawful Futures Transactions, Failing to Register, and Attempted Manipulation of Native Token
CFTC
The Commodity Futures Trading Commission today announced it filed a complaint in the U.S. District Court for the Southern District of Florida against Florida resident Adam Todd and four companies he controlled - Digitex LLC, Digitex Limited, Digitex Software Limited, and Blockster Holdings Limited Corporation. The complaint alleges that Todd and his companies operated a digital asset exchange under the trade name "Digitex Futures." Todd and Digitex Futures are charged with illegally offering futures transactions on a platform other than a designated contract market and also with attempting to manipulate the price of the Digitex Futures native token.
/jlne.ws/3yfTgVH
Commissioner Johnson to Participate in a Panel Discussion at RAID Digital 2022 Conference: New Tech Governance for the New Globalization
CFTC
Commissioner Kristin N. Johnson will participate in a panel discussion on the topic, Can Regulation Save (Crypto) Currencies? - as cryptocurrencies crash and inflation rises, how can policymakers and regulators create stability? What role will blockchain play in traditional and crypto assets in the future? How can we promote multilateral cooperation in the financial sector?
/jlne.ws/3SRt7nT
CFTC Brings Enforcement Action against Digital Exchange and Natural Person Controller Suggesting Native Cryptoasset is a Commodity and Not a Security
Gary DeWaal and Dan Davis - Katten
The Commodity Futures Trading Commission (CFTC) charged a group of companies and their natural person controller with operating an unlicensed futures brokerage company (i.e., a futures commission merchant ("FCM")); not complying with anti-money laundering requirements applicable to FCMs; and executing and confirming futures transactions on an unlicensed futures exchange. Additionally, the CFTC alleged that the defendants engaged in attempted manipulation, fraud and deception in connection with transactions in a native cryptocurrency created and utilized by the defendants. In doing so, the CFTC implied that a little-known digital asset constituted a commodity under the CFTC's jurisdiction, and not a security under the Securities and Exchange Commission's ("SEC") jurisdiction.
/jlne.ws/3UTh8Z3
CFTC Takes Aim at DAO Members in bZeroX Settlement
Elizabeth Lan Davis, Harris Kay, Maggie Sklar and William Walsh - Davis Wright Tremaine LLP
The CFTC's recent announcement of its settlement with a decentralized crypto protocol operator and its two individual founders, together with its complaint against the successor protocol, reflects a novel approach to liability in enforcement efforts in digital assets markets. The CFTC's order raises liability concerns for anyone holding or trading tokens representing membership in a decentralized autonomous organization (DAO) or founding a DAO. This includes tokens outside of those cryptocurrencies currently considered commodities or non-security tokens (e.g., Bitcoin) by the CFTC and SEC.
/jlne.ws/3fEVW90
Kim Kardashian was charged for illegally hawking a cryptocurrency
Scott Nover - QUARTZ
Kim Kardashian is famous for being famous. The reality star abused that fame when she promoted a cryptocurrency called EthereumMax to her more than 200 million followers on Instagram in May 2021, according to federal regulators. The US Securities and Exchange Commission charged (pdf) Kardashian on Oct. 3 for failing to disclose that she was paid $250,000 for the Instagram post.
/jlne.ws/3y8DjAH
SEC to Spotlight Financial Planning and Resilience during World Investor Week 2022
SEC
The Securities and Exchange Commission today announced that it will highlight the importance of long-term planning and investor resilience during World Investor Week (WIW) 2022, which takes place October 3-9. Planning for life's unexpected challenges, being mindful of economic conditions, and creating an investment portfolio for the long term help investors set strong foundations to build their financial futures.
/jlne.ws/3rvVpce
Statement on Financial Stability Oversight Council's Report on Digital Asset Financial Stability Risks and Regulation Before the Financial Stability Oversight Council Open Meeting
Chair Gary Gensler - SEC
Thank you, Secretary Yellen. I'd like to thank the staff of the Financial Stability Oversight Council (FSOC) for working to produce today's thoughtful report on the financial stability risks associated with the crypto market, and I'm pleased to support it. The first big crypto token, Bitcoin, was proposed 14 years ago this month, on a cypher-punk mailing list. It was Halloween night, 2008, in the middle of the financial crisis. Satoshi Nakamoto wrote about a new way to move value on the internet, without a central intermediary.
/jlne.ws/3EgoSyq
SEC Charges Two Canadian Software Engineers with Insider Trading
SEC
The Securities and Exchange Commission today announced insider trading charges against two Canadian software engineers who made $1.6 million by trading ahead of non-public, market-moving financial information.
/jlne.ws/3EjzHQ7
SEC Halts Crypto Asset-Related Fraud Victimizing Latino Investors
SEC
On September 19, 2022, the Securities and Exchange Commission filed an emergency action to stop an on-going fraudulent and unregistered crypto asset offering targeting Latino investors, run by defendants Mauricio Chavez and Giorgio Benvenuto through a company Chavez founded and controlled, CryptoFX, LLC. At the SEC's request, the Court issued a temporary restraining order halting the offering, as well as temporary orders freezing assets and granting other emergency relief. After a hearing on September 29, 2022, the Court also granted the SEC's motion for a receiver and extended the asset freeze.
/jlne.ws/3MjG8ox
|
| | | |
|
| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Investment Trusts Are Trading at The Biggest Discounts In More Than a Decade; It's a 'buyer's market' for those able to trawl through the damage to the market and have the patience to hold on.
John Stepek - Bloomberg
This year's brutal market has investors across asset classes and international markets running for the exits. But where there's panic and wreckage, there's also arbitrage and opportunity. One particularly compelling area is the UK investment trust sector. These publicly-listed closed-end funds can be a fertile hunting ground for those with an eye for a bargain. Right now, on one key measure at least, they're trading at their cheapest levels in over a decade.
/jlne.ws/3ycYEZI
FX Traders Relish Volatile Markets After Years in the Doldrums; Currencies at levels never seen before by many trading now; 'Clients really need FX,' BofA's head of currency trading says
Katherine Doherty, Maria Elena Vizcaino, and Mary Biekert - Bloomberg
Scary times in currency markets mean boom times for the bankers that companies turn to in order to manage foreign-exchange risk. "Clients really need FX," said Carlos Fernandez-Aller, who oversees a team of more than 160 as head of FX and emerging-market macro trading at Bank of America Corp. "It has been up in activity which has been very lucky for us," and there's little sign that volumes are going to abate down any time soon, in his view.
/jlne.ws/3yzzDbx
September's Credit Wipeout Foretells Even More Pain in Junk Debt; High-grade debt just capped worst month of returns since April; Junk bonds posted third straight quarter of losses; loans fell
David Caleb Mutua - Bloomberg
The pain is just beginning for investors in US credit markets after Federal Reserve tightening and recession angst sent investment-grade bonds, high-yield debt and leveraged loans spiraling in September. Losses may pile up further in October for low-grade bonds and loans as debtholders wrestle with an unrelenting Fed, mounting economic risk and market volatility. Debt across the spectrum suffered in September, with high-grade bonds falling 5.26% on a total return basis, the most since April, while a key gauge of US junk debt dropped 3.97% and posted losses for a third consecutive quarter, the longest quarterly losing streak since March 1990. Loans, meanwhile, saw their worst September since 2008.
/jlne.ws/3SS5rQn
RWE Hits Back at Jibes for Investing Abroad During Home Crisis
Rachel Morison - Bloomberg
RWE AG said a $6.8 billion deal to buy renewables assets in the US won't mean less spending at home in Europe. Germany's largest utility announced one of the biggest-ever green deals in the US over the weekend, sparking criticism it should be focusing instead at home at a time when the region is trying to ensure energy availability amid the biggest crisis in decades.
/jlne.ws/3rq39MT
Liability-driven pension investing is still sound, says man who brought it to UK; Strategy that drove last week's market crisis helps 'immunise' funds against interest rate and inflation moves
Josephine Cumbo - Financial Times
The pension investment strategy that fuelled last week's crisis in the UK financial markets was not designed to withstand such volatile moves, according to a leading City figure who helped introduce it. The strategy, known as liability-driven investing (LDI), is at the centre of the pensions industry turmoil that last week prompted a £65bn Bank of England intervention as thousands of schemes teetered on the edge of default.
/jlne.ws/3Egw5i2
Here's why the US is facing a butter shortage ahead of holidays
Daniella Genovese - Fox Business
America is facing a butter shortage right before the holiday season. According to data from the United States Department of Agriculture, the amount of butter sitting in US storage facilities in August fell 10% month-over-month. However, it was down 22% compared to the same time a year ago. For example, there was over 282 million pounds of butter in warehouses last month, down from over 362 million pounds in August 2021, according to data compiled by the USDA.
/jlne.ws/3yfsgWq
|
| | | |
|
| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Will the Supreme Court Restrict the Scope of the Clean Water Act? The court will hear arguments in Sackett v. EPA, a case that seeks to limit the government's authority in protecting waterways and wetlands.
Leslie Kaufman - Bloomberg
With so many crises going on in the world right now — Hurricane Ian, suspected sabotage of the Nord Stream pipeline, the war in Ukraine — it can be hard to keep your eye on the long ball. But there is a hard, slow pitch headed toward the heart of the Clean Water Act, one of the most iconic and fundamental pieces of environmental legislation ever passed in the United States. The challenge comes in the form of Sackett v. Environmental Protection Agency, a case that will be heard by the Supreme Court on Monday, the first day of the court's new term. The court's decision will be announced next year.
/jlne.ws/3yepeBT
Hurricane Ian's Toll Is Severe. Lack of Insurance Will Make It Worse.
Christopher Flavelle - The New York Times
Most of the Florida homes in the path of Hurricane Ian lack flood insurance, posing a major challenge to rebuilding efforts, new data show. In the counties whose residents were told to evacuate, just 18.5 percent of homes have coverage through the National Flood Insurance Program, according to Milliman, an actuarial firm that works with the program.
/jlne.ws/3RAelkr
Paris vs NYC: What It's Like to Bike
Streetfilms video
Featuring prominent New Yorkers who were recently in Paris to ride bicycles.
/jlne.ws/3BYyWJy
'Always check the label': ESG funds not as green as they seem - study; Research on 420 ESG-funds and 95 climate-funds; 14% with higher emissions intensity ratio than average; Some climate funds invest in fossil fuels, mining.
Juliette Portala - Reuters
One in seven funds branded as sustainable has a carbon emissions intensity higher than the average across all investment funds, and no climate-labelled fund has a portfolio fully aligned with the Paris Agreement's goal, a study showed on Tuesday. The analysis, conducted by sustainability data and technology platform ESG Book, is the latest to question the reliability of funds marketing themselves on environmental, social and governance (ESG) grounds.
/jlne.ws/3Ed1y4z
Executing and Elevating Corporate ESG Strategies: Insights from the ESG Leadership Forum 2022
Nathan Greene, Kaley Childs Karaffa and Harrison Tramposch - Nasdaq
From Nasdaq's unique position at the center of capital markets and technology, we have witnessed the rise of environmental, social and governance (ESG) — first in Europe and, more recently, in the U.S. — as retail and institutional investors increasingly incorporate ESG factors into their investment decisions. With ESG firmly in the mainstream of the capital markets, companies are looking to communicate their efforts on all three pillars of ESG and standardize the disclosure of ESG metrics.
/jlne.ws/3RxIEZe
The ESG Report - Supply Chain and ESG - ESG Drivers with James Calder and Jared Connors
Thomas Fox - JD Supra
James Calder and Jared Connors of Assent are my guests on this premier episode of the 5-part series, Supply Chain and ESG - What You Need to Know. In this brief conversation, we talk about how ESG impacts a company's performance presently and in the future. Before the pandemic, many companies were very dependent on global supply chains. Post-pandemic, however, companies need to focus on environmental resilience. This means they need to be careful about where they get their supplies because there is a risk of disruption.
/jlne.ws/3SVEiMo
Disabled Americans Reap Remote-Work Reward in Record Employment; Adults with disabilities have rarely been employed in such high numbers
Molly Smith - Bloomberg
After becoming paralyzed in 2009, Beka Anardi never thought about working again. That is, until the pandemic hit. As millions of people began working remotely, Anardi realized she could resume her career as a recruiter. She sent her resumé to a few people in her network at the end of last year and was employed within a matter of weeks. The 41-year-old now works full-time from her house in Bellevue, Washington, where she can comfortably navigate her wheelchair, avoid the hassle of commuting and take care of her bodily needs in the privacy of her own home.
/jlne.ws/3MbU03V
Nord Stream Leak Is a Climate Disaster That Oil and Gas Repeat Daily; Global crude and gas producers emit roughly the same amount of methane leaked by the Russian pipelines every 1.5 days.
Aaron Clark - Bloomberg
Planet-warming methane that's bubbled up from the ruptured Nord Stream gas pipelines at the bottom of the Baltic Sea into the atmosphere is a climate disaster. But it's one that's repeated across the globe roughly every 1.5 days. The oil and gas industry emits an estimated 80 million metric tons of methane each year during production, processing and transport of the fuels, according to the International Energy Agency's Methane Tracker. That works out to about 220,000 tons each day — slightly less than the 300,000 tons the German government estimated last week would enter the atmosphere from the ruptured pipes.
/jlne.ws/3BYxQgU
ESG Certification: Assisting in Mitigating Greenwashing for Investors, Managers, Funds and Regulators
Andrew Rabinowitzand Neelam Sharma - JD Supra
There have been numerous positive developments in the evolution of ESG investing. Still, the research needed to assess which investments are truly ESG-compliant and which are tantamount to greenwashing is burdensome. It is estimated that US asset managers spend over US$200million on ESG research each year, and the cost associated with discerning if a fund is meeting its ESG mandates can be prohibitive, write the authors of this article. What the industry needs is a thorough and independent ESG assessment certification for fund managers and funds, they explain.
/jlne.ws/3fKqwOE
|
| | | |
|
| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Ex-Credit Suisse CEO Thiam's SPAC to Combine With Solar Firm Complete Solaria; Former Credit Suisse CEO set up blank-check vehicle in 2021; Deal comes at time when wider SPAC market is under pressure
Francine Lacqua - Bloomberg
Tidjane Thiam's blank check company has agreed to combine with solar company Complete Solaria, a rare recent deal of note for the troubled SPAC market. Thiam's Freedom Acquisition I has entered into a definitive business combination agreement with the newly formed US provider, according to a statement Monday. The combination will give Complete Solaria an equity value of about $888 million.
/jlne.ws/3EeIItS
Dan Och Tells Sculptor Board the Hedge Fund Has M&A Interest; Founders have been asked about strategic transaction, Och says; Firm's shares have plunged this year; gained 13% premarket
Hema Parmar - Bloomberg
Dan Och is escalating his fight with Sculptor Capital Management Chief Executive Officer Jimmy Levin, deepening the fissures in the relationship with his former protege and putting the publicly traded hedge fund firm in play.
/jlne.ws/3EffWJq
HSBC explores $9bn sale of Canadian business; UK-based bank is under pressure from its largest shareholder to focus on Asia
Emma Dunkley - Financial Times
HSBC has launched a strategic review of its Canadian business that could lead to its sale for up to $9bn, as the group resists pressure from its largest shareholder Ping An to split its Asian and western operations.
/jlne.ws/3SC16RM
|
| | | |
|
| Wellness Exchange | | An Exchange of Health and Wellness Information | Pfizer Needs to Prove It's Ready to Move On From Covid-19; The drug giant believes that the technology behind its blockbuster vaccine will be the foundation of a lucrative new era, but competitors are circling and its stock is under pressure.
Riley Griffin - Bloomberg
Pfizer Inc. emerged from the Covid-19 pandemic as the world's most visible drugmaker, but its success has left investors impatient for an encore. The windfall from the pharmaceutical giant's Covid vaccine almost doubled its revenue in just one year. And now the shot, coupled with Pfizer's Covid antiviral pill, is poised to make up more than half of its expected $100 billion of sales in 2022. That's left Pfizer flush with cash — $28 billion it could spend on the kinds of deals that for decades fueled its growth into an American colossus.
/jlne.ws/3RtcXAc
|
| | | |
|
| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Floating LNG Terminal Rates Spike in Europe on Ship Shortage; Shipbroker says supply of FSRUs turned to deficit this year; Charter rates to Germany doubled to $200k/day, Rystad says
Paul Burkhardt and Anna Shiryaevskaya - Bloomberg
Europe's worsening energy crisis is creating a shortage of floating liquefied natural gas terminals, causing rental rates for the specialized tankers to double. Demand for LNG imports is set to intensify after the ruptures on the key Nord Stream pipeline system quashed any prospect of Russia turning its gas taps back on. Countries are increasingly turning to floating storage and regasification units, or FSRUs, which are essentially mobile terminals that unload the super-chilled fuel and pipe it into onshore networks.
/jlne.ws/3rsUkSn
Top Africa Oil Producers on Opposite Debt Paths, World Bank Says; Angola's debt ratio set to narrow by 23.8 percentage points; World Bank cuts Nigeria's economic growth forecast to 3.3%
Arijit Ghosh - Bloomberg
Africa's two biggest oil producers are on a contrasting debt trajectory, according to the World Bank. Angola's public debt will decline to 61.9% of gross domestic product this year from 85.7% in 2021, while Nigeria will see its debt service-to-revenue ratio balloon to 102.3% in the same period, the World Bank said in its biannual Africa's Pulse report.
/jlne.ws/3fFlNh3
Egypt's Pound Falls to Record Low as Crucial IMF Deal Draws Near
Netty Idayu Ismail - Bloomberg
Egypt's pound weakened to a record low as the government seeks to clinch a loan from the International Monetary Fund. The pound slipped 0.2% to 19.6736 against the dollar in the offshore market on Tuesday, surpassing the record low of 19.6725 reached in December 2016, according to data compiled by Bloomberg. Some of the world's biggest banks have said the Egyptian pound is still too expensive and the IMF would demand a looser exchange rate -- even after the central bank devalued it by about 15% in March. The government has already conceded a more flexible currency is necessary to support the economy.
/jlne.ws/3fHJ9mb
|
| | | |
|
| Miscellaneous | | Stories that don't quite fit under the other sections | Citi Warns Charities Face Crisis Despite $2.4 Trillion Warchest; Report finds giving was already stagnating before donors were hit this year with declining asset values and elevated inflation.
Ben Steverman - Bloomberg
Plunging markets, rising inflation and increasing need for services add up to a "triple squeeze for charities" that will create a "crisis" for the sector in 2022 and beyond, according to a new Citigroup Inc. report. "In the face of increased demand, charities face higher costs and higher risks that their funding will decline," researchers at the bank wrote in a report on global philanthropy trends published Tuesday.
/jlne.ws/3CsKRAP
|
| | | |
|
Disclaimer: All John Lothian Newsletters, JohnLothianNews.com, MarketsWiki.com and MarketsReformWiki.com are products of John Lothian News, a division of John J. Lothian & Company, Inc. The opinions expressed in all John J. Lothian & Company, Inc. publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers. Futures and options trading involve risk. Past results are no indication of future performance. Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any website or newsletter content.
© 2022 John J. Lothian & Company, Inc. All Rights Reserved. |
|
|
