| November 01, 2024 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
The biggest U.S. futures exchange by volume yesterday was ForecastEx. Volume is a traditional measure of size and ForecastEx traded 32.815 million pairs or contracts yesterday on 108.5 thousand trades. It has been quite the week for the event prediction exchange as on Tuesday volume was 31K trades with 10.914 million pairs/contracts traded. Wednesday saw 67.33K trades and 21.820 million pairs/contracts traded. For the record, ForecastEx's volume is based on $1 trades, not the huge notional value of the CME Group or other exchange's contracts, but based on pure volume, it was the largest U.S. futures exchange yesterday.
On Wednesday, I interviewed Thomas Peterffy, the founder, chairman and CEO of Interactive Brokers and the man who came up with the idea for ForecastEx. I wanted to know more about the exchange, the contracts and why Peterffy was doing this. You will find out in the interview, which you can see HERE.
Crypto.com announced its acquisition of Watchdog Capital, LLC, an SEC-registered broker-dealer and member of FINRA and SIPC, allowing it to offer equities and equity options to U.S. traders. CEO Kris Marszalek emphasized Crypto.com's commitment to integrating traditional and digital finance responsibly under proper regulatory frameworks. This acquisition will enhance Crypto.com's services, enabling U.S. users to engage with stocks and options. This move follows other moves, such as launching regulated crypto derivatives and global retail services.
Bloomberg reports U.S. oil production reached a new record of 13.4 million barrels per day in August, with Texas and New Mexico hitting all-time highs in output from the Permian Basin
Here are the headlines from in front of FOW's paywall from some recent stories: Cboe raises guidance after 13% boost to third quarter derivatives revenue, Marex to raise capital through bond deal after string of acquisitions, CME cites international demand for Henry Hub open interest spike, Mizuho connects clients to Abaxx Exchange, ANALYSIS: Open interest growth a positive for energy volumes - ICE and ANALYSIS: BGC chief Lutnick wants more clients on FMX Futures
I am in Valdosta, GA today and will be headed to Chicago today, though I doubt I will make the 14 hour trip in one day. We shall see.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
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Our most read stories from our previous edition of JLN Options were:
- Meet the Wall Street Bigwig Who Has Become Trump's Headhunter in Chief from The Wall Street Journal.
- From Punch Cards to Crypto: One Man's Journey Through Wall Street's Tech Revolution from John Lothian News.
- U.S. Election 2024: What the Options Data Says from Cboe. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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Thomas Peterffy on ForecastEx: Building a Buy-Only Market to Transform Event Trading and Crowd-Based Insights
JohnLothianNews.com
Thomas Peterffy, founder of Interactive Brokers, shares insights into his latest venture, ForecastEx, an innovative platform designed to create a new market for event-based contracts in an interview with John Lothian News. ForecastEx provides traders a unique "buy-only" model where participants take yes or no positions on the probability of future events, challenging traditional speculation while aiming to yield broader societal insights.
Watch the video »
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From Punch Cards to Crypto: One Man's Journey Through Wall Street's Tech Revolution
JohnLothianNews.com
John Rapa never imagined his part-time college job would lead to a front-row seat for Wall Street's technological transformation. But over five decades, he's witnessed the industry's evolution from paper tickets to blockchain - and he's still grappling with how to explain Bitcoin to his grandparents.
Watch the video »
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U.S. Election 2024: What the Options Data Says
Henry Schwartz - Cboe
Listed options serve multiple purposes in today's financial markets, from basic hedging and income overlays to quantitative investing strategies and even as the foundation for an entire ecosystem of structured products and defined-outcome exchange traded funds (ETFs). Another crucial benefit comes from the insight the options markets provide into forward-looking expectations and sentiment, aiding decision-making for traders and non-traders alike.
A unique feature of the U.S. election taking place on November 5, 2024, is the availability of index options with daily expiration cycles in the days leading up to, and after, the event. While the popular Cboe Volatility Index (the VIX Index) gauges market volatility expectations on a 30-day time horizon, daily options enable volatility estimates at a finer granularity, making it possible to isolate market expectations around a significant event, like the election.
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******* This data has been put through the Schwartz-atron and analyzed. Here are the results.~JJL
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Justice Department Announces Settlement and Consent Decree with Chicago Cubs Over Alleged Americans with Disabilities Act Violations at Wrigley Field
Press Release
The Justice Department today announced a settlement and proposed consent decree with the Chicago Cubs to resolve alleged violations of the Americans with Disabilities Act (ADA) at Wrigley Field. "The Americans with Disabilities Act requires that sports venues like Wrigley Field be accessible to people with disabilities," said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. "The Justice Department is committed to ensuring that people with disabilities have full and equal access to public accommodations, including our ballparks."
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******* I am not sure, but I think all of us Cub fans should be considered disabled in one way or another. Disabled from having a winning team?~JJL
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Thursday's Top Three
Wednesday's most read story was The Wall Street Journal story, Meet the Wall Street Bigwig Who Has Become Trump's Headhunter in Chief. Our second most read story was, From Punch Cards to Crypto: One Man's Journey Through Wall Street's Tech Revolution from John Lothian News. Third was CME Wins Futures Commission Merchant Approval, Sparking Backlash from Bloomberg via Yahoo Finance.
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| Lead Stories | Markets Media acquires Trader TV to form multimedia capital markets giant
Lucy Carter - Markets Media The Desk
Global capital markets publisher, Markets Media Group, has acquired Trader TV, the leading online trading TV provider, to form a multi-media giant, spanning the USA, Europe, and Asia Pacific. "Trader TV adds nearly a decade of video and podcast capabilities to Markets Media's offering allowing us to reach capital markets professionals in every medium," says Mohan Virdee, CEO of Markets Media. "Bringing live, recorded and in-event video will ensure our audience gets the best access to information however they want to consume it."
/jlne.ws/3Yt2xWS
Nasdaq and Cboe Challenge SEC Over New Stock Trading Rule; Exchanges say changes could affect pricing and hurt investors; US regulator had passed new rule altering economics of trading
Katherine Doherty and Lydia Beyoud - Bloomberg
Nasdaq Inc. and Cboe Global Markets Inc., two of the biggest stock exchanges, challenged a new US Securities and Exchange Commission rule that changes the economic structure of how stocks trade. The firms asked a court to review the SEC's recently finalized national market structure regulation, also known as Reg-NMS, according to a petition, which they said was lodged with a United States appeals court in Washington.
/jlne.ws/4fvCoh1
Betting Markets Tend to Get Elections Right-With Some Notable Exceptions; The accuracy of betting markets has become a politically loaded question
Alexander Osipovich - The Wall Street Journal
Betting markets show former President Donald Trump has a roughly 60% chance of beating Vice President Kamala Harris next week. Should they be trusted? History suggests that betting markets have generally been good forecasters of U.S. elections. More often than not, the presidential candidate with the best odds before Election Day goes on to take the White House.
/jlne.ws/4f4pxT5
11,000 Political Groups Spent $14.7 Billion to Influence the 2024 Election, From billionaires to small-dollar donors, this is 99% of total spending so far
Raeedah Wahid, Bill Allison, Cedric Sam, Tanaz Meghjani - Bloomberg
The US political system runs on money - and lots of it. With no legal limits on how much money can go into electing candidates to the White House and Congress, voters are deluged with ads, text messages and mailers as Republicans and Democrats battle to influence a deeply divided electorate. That flood of TV commercials, frantic fundraising appeals and litany of door knockers is the result of $14.7 billion worth of spending from candidates, parties and political action committees, about 92% of the total that OpenSecrets projects will be shelled out through the election cycle.
/jlne.ws/4hvY0f2
High-Frequency Traders Get an Extra 30 Minutes for Japan Stocks; Extended trade time stokes fears of machine-driven price moves; Japan Exchange CEO says move will improve price discovery
Yasutaka Tamura - Bloomberg
An additional 30 minutes of trading at the Tokyo Stock Exchange may pit some investors against algorithm-driven funds seeking to capitalize on price-sensitive announcements to be made during extended hours. The close for Asia's second-biggest equities will be increased to 3:30 p.m. from Nov. 5. Of 800 companies that will post earnings after this date, more than 40% plan to report during the extended period, according to a survey by the exchange. That compares with less than 20% of total quarterly releases made during market hours last season.
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Swiss Finance Minister Says Stricter Bank Rules Needed for Trust; Keller-Sutter says can't exclude introduction of bank fines; Government "really committed" to finance center, minister says
Bastian Benrath-Wright - Bloomberg
Swiss Finance Minister Karin Keller-Sutter said efforts to revamp banking regulation are designed to ensure trust in the nation's financial center and help it remain a world leader in the aftermath of Credit Suisse's demise. "We have to find a balance between competitiveness on the one and the protection of the economy on the other side," Keller-Sutter, 60, said at a Bloomberg event in Zurich on Thursday. "The government is really committed to having a competitive financial center."
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Crispin Odey Facing Action From the FCA Over His Misconduct; Watchdog says his behavior over warning "lacked integrity"; FCA publishes warning over conduct at OAM hedge fund
Leonard Kehnscherper - Bloomberg
Crispin Odey was warned by the UK markets watchdog that it plans to take action over what it called a "lack of integrity" when he responded to allegations of sexual misconduct. The FCA said Friday that Odey's behavior toward both Odey Asset Management and the regulator "lacked candor" after he was given a written warning for his conduct. "He used improper means to protect his own interests and achieve his objectives."
/jlne.ws/4hrXjTQ
*****This story from the Financial Times.
Nomura Woes Deepen on Spoofing Case, Attempted Murder Arrest
Takashi Nakamichi and Nao Sano - Bloomberg
Scandals are mounting at Nomura Holdings Inc., threatening to derail a turnaround plan at Japan's biggest brokerage just as it's beginning to bear fruit. Nomura said on Thursday Chief Executive Officer Kentaro Okuda and other top managers will take a pay cut after the firm admitted an employee manipulated the bond market, prompting several firms to stop trading with the brokerage. Less than an hour later, a local news agency reported that a former Nomura worker was arrested on suspicion of robbery and attempted murder of elderly clients.
/jlne.ws/48uSCo8
Nomura delivers big profit rise in quarter dogged by scandal
Anton Bridge - Reuters
Japan's Nomura Holdings more than doubled its quarterly profit on Friday, boosted by strong performance at its wholesale and wealth management businesses during a quarter overshadowed by a bond trading scandal. Nomura delivered its highest profit in four years and its sixth quarter of growth, results that may take some of the sting out of the recent scandal. Japan's biggest brokerage was forced to pay a regulatory fine and temporarily lost its status as a primary dealer of government bonds.
/jlne.ws/4f7Fs2O
Blockchain Association says SEC has cost crypto industry $400 million since Gensler became chair
Sarah Wynn - The Block
The Blockchain Association's member firms say they have spent $400 million on costs associated with enforcement actions brought by the U.S. Securities and Exchange Commission under Chair Gary Gensler. The advocacy group, with global markets research company HarrisX, released that figure on Thursday and other survey results on how U.S. voters view the SEC and crypto."According to self-reported figures collected, anonymized, and aggregated by HarrisX, the U.S. digital asset industry has spent more than 400 million dollars defending itself against Chair Gensler's SEC, with untold losses of jobs, innovation, and U.S. investment," the Blockchain Association said in a statement.
/jlne.ws/4htWutG
NYSE-parent ICE's profit meets estimates as strong trading offsets higher expenses
Jaiveer Shekhawat and Laura Matthews - Reuters
Intercontinental Exchange reported third-quarter profit in line with expectations on Thursday, as strong trading volumes in the energy and options segments helped offset higher expenses for the New York Stock Exchange parent. Conflict in the Middle East and diverging views of the interest rate trajectory have bumped up volatility in the global markets, prompting traders to actively adjust their portfolios to capitalize on fluctuating prices and avoid risks. Exchanges typically benefit from market turmoil, which tends to boost overall trading volumes. ICE's energy trading volumes rose 23% in the third quarter, with gains across segments including oil, gasoil as well as other crude and refined products. Natural gas average daily volumes increased 33%.
/jlne.ws/48MSpNv
Oil Was Written Off. Now It's the Most Productive US Industry; Oil and gas extraction has seen the fastest labor productivity gains of any sector in the past decade.
Catarina Saraiva, David Wethe, Mitchell Ferman, and Kevin Crowley - Bloomberg
In a dusty swath of sagebrush country near the Texas-New Mexico border, engineers at oil producer Matador Resources Co. encountered a problem. Conventional wisdom called for drilling four wells into the ground and then horizontally to access layers of oil-soaked rock, a technical feat perfected by the US shale industry. But the plot of land was too narrow, limiting each well's reach and likely making them unprofitable. So the engineers tried a novel concept: a U-turn. After boring vertically to the shale layer, they went sideways for one mile, curved the well around and then drilled back to where it began. It worked. Matador was able to pump the oil with two wells instead of four, essentially cutting costs in half.
/jlne.ws/3Uz5ALY
Prometheum Hires Jon Brubaker as Head of Communications; Brubaker brings extensive financial services communications expertise to drive Prometheum's strategic engagement
Businesswire
Prometheum Inc., the leading market infrastructure provider for digital asset securities, today announced it has appointed Jon Brubaker as Head of Communications. "By integrating this asset class into established financial markets, Prometheum is helping advance the digital asset industry, and I look forward to sharing this story with investors, institutions, and others interested in the future of finance. Brubaker will oversee an integrated communications strategy for Prometheum Inc. and its subsidiary broker-dealers, Prometheum ATS and Prometheum Capital, focused on deepening engagement with key stakeholders.
/jlne.ws/3UwYGXF
Why There's Hope for U.S. Factory Towns Laid Low by the 'China Shock'; Communities that suffered the worst of plant closings in recent decades are now gaining an outsize share of fresh investment and new jobs.
Peter S. Goodman - The New York Times
For much of the last half century, economic life in the heart of North Carolina has been dominated by factory closings, joblessness and downgraded expectations. Textile mills and furniture plants have been undercut by low-priced imports from Mexico and China. Tobacco processing jobs have disappeared. Yet over the last several years, an infusion of investment in cutting-edge industries like biotechnology, computer chips and electric vehicles has lifted the fortunes of long-struggling communities.
/jlne.ws/3Arr9XV
Crypto.com Announces Acquisition of SEC Registered Broker-Dealer Watchdog Capital, LLC; SEC Registered Broker-Dealer and Member of FINRA and SIPC Licensed to Offer Equities and Equity Options for Traders in the U.S.
Press release
Crypto.com announced today the acquisition of a SEC registered broker-dealer and member of FINRA and SIPC, Watchdog Capital, LLC. This acquisition will enable Crypto.com's new subsidiary to offer equities and equity options, among other things, to eligible traders in the U.S. "We are aggressively working towards integrating traditional financial tools with digital financial capabilities and are doing so while maintaining our focus on building responsibly with the necessary licenses and registrations to operate as the industry's leader." said Kris Marszalek, CEO of Crypto.com. "We are extremely confident in the future of the U.S. market as we see growing bipartisan support for our industry. This acquisition furthers the capabilities of the Crypto.com family of companies through a fully registered broker dealer."
/jlne.ws/40wDRiH
Former BFI Chair and Warner Bros. U.K. Boss Josh Berger Joins Advisory Board of Content Studio Project Brazen
Alex Ritman - Variety
Josh Berger, the respected exec who was previously the head of Warner Bros. UK and served as BFI Chair, has been named on the inaugural advisory board for Project Brazen, the fast-rising "global journalism studio and production company" set up by former WSJ reporters and bestselling authors Bradley Hope and Tom Wright. Berger - who left Warner. Bros in 2020 and last year unveiled his own media investment company Battersea Entertainment - joins the board alongside a number of distinguished figures, including Mojo Partners exec director and Como Group director Melissa Ong, former Financial Times editor Lionel Barber and Pi Capital founder and CEO David Giampaolo.
/jlne.ws/3NLiFxY
Big Tech's AI splurge worries investors about returns
Anna Tong, Aditya Soni and Deborah Mary Sophia - Reuters
Meta, Microsoft boost capital spending on AI. Amazon's AI spending seen likely to spike, too. Big Tech's AI investments may crunch short-term gains. AI chip supply constraints hamper infrastructure build-out. Big technology companies including Microsoft, Meta and Amazon are stepping up spending to build out AI data centers in a rush to meet vast demand, but Wall Street is hungry for a quicker payday on the billions invested. Microsoft and Meta both said on Wednesday their capital expenses were growing due to their AI investments. Alphabet, too, reported on Tuesday that these expenditures would remain elevated, while Amazon said they would increase the rest of the year and into 2025.
/jlne.ws/3CaOqOs
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Kremlin says Google should lift its YouTube block on Russian broadcasters
Reuters
The Kremlin said on Thursday that Alphabet's Google should lift its block on Russian TV channels broadcasting on YouTube and said it hoped huge legal claims racking up against the U.S.-based company would jolt it into action. Google stopped serving ads to users in Russia in March 2022 and paused monetisation of content which it deemed to exploit, dismiss or condone Russia's war in Ukraine.
/jlne.ws/4foLOuu
Ukraine's Zelenskiy blasts allies for 'zero' response to N.Korean deployment
Yuliia Dysa and Tom Balmforth - Reuters
President Volodymyr Zelenskiy blasted what he called his allies' "zero" response to Russia's deployment of North Korean troops for the war in Ukraine, saying on Thursday a weak reaction would encourage Russia's Vladimir Putin to beef up the contingent. The Ukrainian leader, in an interview with South Korea's KBS television channel, said he believed Moscow was already trying to agree for North Korea to send engineering troops and a "large number of civilians" to work at Russian military plants.
/jlne.ws/4f9bFqB
Trudeau says global impact of Ukraine war is worsening with time
David Ljunggren - Reuters
The war in Ukraine is hurting the entire world and the longer it goes on, the worse the consequences will be for everyone, Canadian Prime Minister Justin Trudeau said on Thursday. Trudeau made his remarks at a time when the United States and its allies accuse Chinese entities of helping Moscow's military effort, and Washington and Ukraine say thousands of North Korean troops are in Russia.
/jlne.ws/3Jvap0X
Treasury Takes Aim at Third-Country Sanctions Evaders and Russian Producers Supporting Russia's Military Industrial Base; Sanctions target individuals and entities in 17 jurisdictions; Deputy Secretary calls on countries to take similar action against enablers of Russia's military-industrial base
Press Release
Today, the U.S. Department of the Treasury sanctioned 275 individuals and entities involved in supplying Russia with advanced technology and equipment that it desperately needs to support its war machine. Today's action targets both individual actors and sprawling sanctions evasion networks across 17 jurisdictions, including India, the People's Republic of China (PRC), Switzerland, Thailand, and Türkiye. In addition to disrupting global evasion networks, this action also targets domestic Russian importers and producers of key inputs and other materiel for Russia's military-industrial base.
/jlne.ws/3Yw6vxH
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | US asked Lebanon to declare unilateral ceasefire with Israel, sources say
Timour Azhari and Laila Bassam - Reuters
US envoy asked Lebanon to declare unilateral ceasefire, sources say; US pushing for end to conflict between Israel and Hezbollah; Lebanon's prime minister denies ceasefire request was made; US sought to persuade Beirut to take back initiative, sources say. The U.S. asked Lebanon to declare a unilateral ceasefire with Israel to revive stalled talks to end hostilities between Israel and Hezbollah, a senior Lebanese political source and a senior diplomat said - a claim denied by Lebanon's prime minister. They said the effort was communicated by U.S. envoy Amos Hochstein to Lebanese caretaker Prime Minister Najib Mikati this week, as the U.S. stepped up diplomatic efforts for a ceasefire between Israel and Iran-backed militant group Hezbollah.
/jlne.ws/4f2jtKK
First Gaza, now Lebanon: How support for Israel's war is influencing Michigan voting
Leila Fadel - NPR
This city, home to one of the largest Arab American communities in the country, is a city in deep mourning over two wars in the Middle East thousands of miles away. The signs of that grief are everywhere. At a funeral for a Lebanese American man killed in an Israeli airstrike in southern Lebanon. At a candlelight vigil where people bowed their heads in prayer. And on the walls of a local coffee shop and art gallery, Black Box, covered in the colors of Lebanese and Palestinian flags. Playing cards with pictures of President Biden and Secretary of State Antony Blinken are also taped up, each marked with the words "war criminal."
/jlne.ws/4frShoB
Iraq tries to avoid regional fight as militias fire at Israel
Ahmed Rasheed and Timour Azhari - Reuters
Nervously watching Israel's destructive campaigns in Gaza and Lebanon, Iraq is working to avoid being drawn into the growing regional conflict as Iran-backed armed groups launch attacks on Israel from Iraqi soil, sources familiar with the matter say. Two decades after the U.S.-led invasion that toppled Saddam Hussein, Iraq is experiencing relative stability with high revenue from oil sales funding a service-based agenda that has turned much of the country into a construction site.
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Announcing the Launch of Silver (SLR) and Stellar (XLM) Futures from Coinbase Derivatives; On November 11, Coinbase Derivatives is launching retail-sized futures contracts for Silver and Stellar, enhancing our suite of CFTC-regulated offerings alongside BTC, ETH, BCH, LTC, DOGE, SHIB, AVAX, DOT, LINK, Gold, and Oil.
Boris Ilyevsky - Coinbase
At Coinbase Derivatives, we are on a mission to reshape how traders engage with derivatives markets. Our latest initiative involves the launch of new futures contracts for Silver (SLR) and Stellar (XLM), expanding our commitment to providing innovative trading opportunities in a secure, regulated environment. Unlocking New Opportunities. The introduction of Silver and Stellar futures aligns with our commitment to diversifying market offerings and enhancing trading possibilities for our participants. Silver, alongside Gold has long been recognized as a strategic asset, offering potential protection against inflation and market volatility. Known for its fast and cost-effective cross-border payment solutions, Stellar adds an exciting dynamic to our digital asset derivatives offerings.
/jlne.ws/3Yx1sgI
abrdn Investments Becomes New ETF Issuer at SIX Swiss Exchange
BME-X
Today, SIX welcomes abrdn Investments as its latest issuer of Exchange-Traded Funds (ETFs) with their new real estate product. This addition brings the total number of ETF at SIX Swiss Exchange to 1,845 across 28 issuers. The newly listed ETF "abrdn Future Real Estate UCITS ETF USD Acc ETF Share Class" offers institutional and private investors direct access to developed global real estate markets. This actively managed ETF leverages insights from abrdn Investments' Global Real Estate Research team, allowing for exposure to their selected real estate strategies. With its first active ETF, abrdn Investments enters the European market, further expanding its range of investment solutions.
/jlne.ws/4f6aBnf
Cboe Global Markets Reports Results for Third Quarter 2024
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE) today reported financial results for the third quarter of 2024. "In the third quarter, Cboe reported strong diluted EPS of $2.07, record net revenue of $532.0 million and record adjusted diluted EPS1 of $2.22, highlighting the solid progress we continued to make in sharpening our strategic focus," said Fredric Tomczyk, Cboe Global Markets Chief Executive Officer. "Through the first three quarters of the year, Cboe has grown net revenue by 9%, diluted EPS by 4%, and adjusted diluted EPS1 by 14%. The broad-based contribution speaks to the complementary nature of Cboe's ecosystem with Derivatives net revenue up 11%, Cash and Spot Markets up 9% and Data and Access Solutions up 6% on a year-to-date basis. I am excited as we move forward as an organization with a refined strategic framework that will help ensure we are well-aligned with secular market trends to drive growth and opportunity in the years ahead."
/jlne.ws/4fq9Rcy
JSE SME Rise Capital Matching Roadshow Kicks Off, Growing SMEs Across Three Provinces
JSE
This initiative offers small and medium sized businesses, who meet the specified criteria, an opportunity to pitch their businesses to potential funders, facilitating access to critical funding aimed at fostering business growth and market access in the regions. This roadshow represents a collaboration between the Johannesburg Stock Exchange (JSE), various government institutions, funding bodies and economic development organisations to facilitate funding access for SMEs in South Africa and drive growth of the sector which is the backbone of the economy.
/jlne.ws/40sM5sj
Performance Bond Requirements: Energy, Equity, Interest Rate, and Metal Margins - Effective November 01, 2024
CME Group
/jlne.ws/4fvcN7Y
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Chainlink makes a case for blockchain-driven finance at its first Hong Kong event
South China Morning Post
At SmartCon 2024, one of the major Web3 conferences the Hong Kong government courted to the city this year, companies made their pitch for integrating blockchain into the global financial plumbing amid rising geopolitical risks. Event organiser Chainlink, a blockchain infrastructure firm, said 2,000 people attended the two-day conference that kicked off at Kerry Hotel in Hung Hom on Wednesday. SmartCon is larger this year than in the past, according to the company.
/jlne.ws/3Ap4Lyw
Microsoft Hires Engineer Who Kept Facebook Data Centers Humming
Matt Day, Kurt Wagner and Dina Bass - Bloomberg
Microsoft Corp., which is struggling to bring data centers online fast enough to meet demand for its artificial intelligence products, hired one of the engineering chiefs who kept Facebook's infrastructure humming. Jay Parikh will join the senior leadership team and report to Satya Nadella, Microsoft's chief executive officer.
/jlne.ws/3Az5Nrz
Visa Has Deployed Hundreds of AI Use Cases. It's Not Stopping; 'Impatience is a virtue,' said Visa's president of technology, Rajat Taneja
Isabelle Bousquette - The Wall Street Journal
Visa is leaning on staff to quickly drum up generative AI use cases even as the payments giant streamlines its international business and cuts jobs. President of Technology Rajat Taneja said the company already has more than 500 generative artificial intelligence applications in use, the result of a go-fast strategy designed to reap the AI's benefits sooner and keep pace with bad actors whose fraud methods are becoming more sophisticated.
/jlne.ws/48DNm1B
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| Cybersecurity | | Top stories for cybersecurity | Cyber Threats and the Election: What You Need to Know; Hackers are deploying tried-and-true tactics to disrupt proceedings but none will actually change the outcome of the vote, officials say
Belle Lin and Catherine Stupp - The Wall Street Journal
Hackers are deploying the same tactics used against businesses and critical infrastructure-from email phishing to website attacks and ransomware-to disrupt next week's presidential election. One big difference: Some are crafting their attacks with disinformation to exploit common misconceptions of the U.S. electoral process, aiming to undermine voter trust.
/jlne.ws/48tne9H
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| Cryptocurrencies | | Top stories for cryptocurrencies | Bitcoin Rally Masks Bleaker Picture in the Crypto World
Philip Lagerkranser and Anna Irrera - Bloomberg
Beyond Bitcoin's rally toward another all-time high and renewed ETF inflows, a bleaker picture of crypto is emerging, one where waning interest in once-hot assets prompts some companies to slash jobs. On Wednesday, crypto exchange Kraken announced job cuts a person familiar with the matter said amounts to 15% of workers, while rival Coinbase Inc. reported earnings that missed estimates. Software developer Consensys is among other digital-asset firms that recently started trimming jobs.
/jlne.ws/3UvRCKA
Stablecoin Issuer Tether Says Third-Quarter Profit Was $2.5 Billion; USDT tokens in circulation has climbed to almost $120 billion; Profit, holdings data released in a third-party attestation
Olga Kharif - Bloomberg
Tether Holdings Ltd., the British Virgin Islands-incorporated operator of the largest stablecoin, said it posted net profit of $2.5 billion in the third quarter, largely driven by gains realized on its holdings of US Treasuries and gold. Closely held Tether, which released the information as part of a third-party attestation by BDO, doesn't release audited financial statements. The market value of Tether's USDT token in circulation has climbed to almost $120 billion, as demand for stablecoins rose during the crypto bull market. Tether said it has more than $6 billion in excess reserves.
/jlne.ws/3YXq0B3
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| Politics | | An overview of politics as it relates to the financial markets | Why I'm Voting for Kamala Harris; When it comes to the candidates' policy positions and personal integrity, there's a clear choice.
Michael R. Bloomberg - Bloomberg (opinion)
I do not agree with Vice President Kamala Harris on every issue, but earlier this week, I voted for her without hesitation. I'd like to explain why, in hopes that others who have a history of supporting candidates in both parties - as I do - will join me. As I've thought about the candidates in this presidential election, I've been guided by two main considerations: policy positions and personal integrity. When it comes to policy, the contrast could not be clearer.
/jlne.ws/3Yw7U7r
Diamond-Market Crash Drives Seismic Political Shift in Botswana; Human rights lawyer Boko set to succeed Masisi as president; Voters punish Botswana Democratic Party for economic downturn
Mbongeni Mguni - Bloomberg
An opposition coalition emerged as the shock winner of Botswana's parliamentary elections, the first time power has changed hands in the diamond-dependent southern African nation since independence almost six decades ago. Duma Boko, a Harvard-educated human rights lawyer, is set to succeed Mokgweetsi Masisi as president after his Umbrella for Democratic Change secured an outright majority in the 61-seat legislature, partial vote tallies show. Masisi's Botswana Democratic Party, which was widely expected to retain its majority, was in fourth place with just four seats. Final results are expected later on Friday.
/jlne.ws/4fLGRML
BofA Joins Citi's Call to Sell Stocks If Trump Win Sparks Rally; Republican election sweep could spur inflation, Hartnett warns; Market consensus is for Trump win to add fuel to stock rally
Sagarika Jaisinghani - Bloomberg
Investors should consider selling any rally in US stocks if Donald Trump wins the election, Bank of America Corp.'s Michael Hartnett said, echoing a call from Citigroup Inc. earlier this week. A White House victory for Trump accompanied by Republican majorities in the Senate and the House of Representatives could result in tax cuts and immigration controls, Hartnett wrote in a note. That would drive inflation and interest-rate hikes, making it risk-off for stocks, he said. The views from two of the biggest banks on Wall Street clash with the consensus view that a Trump win will boost US equities because his proposals to lower corporate taxes will benefit company earnings. The S&P 500 Index has rallied in recent weeks as betting markets shifted in favor of a victory for Trump.
/jlne.ws/3UBA7bV
The Soros Heir Who Is Everywhere This Election; Alex Soros is donating millions to Democrats, schmoozing with candidates and posting about it all on social media
Maggie Severns and Gregory Zuckerman - The Wall Street Journal
On a recent Saturday morning, Alex Soros put on jeans, a white T-shirt and a baseball cap that read "From the window to the Walz" and went door-to-door for Democrats in a Philadelphia neighborhood. No one seemed to recognize the scion of the Soros family. One woman trolled him: "Who do you think I should vote for? For Trump?"
/jlne.ws/3C6ijzb
Private Equity Spends Heavily in 2024 Election; Buyout executives have spent more than $231 million so far, preferring Republicans and conservative groups
Chris Cumming - The Wall Street Journal
The private-equity industry is nearing a political-spending record in the 2024 elections, hoping to change the tone in Washington after challenges from Biden administration regulators and progressive politicians.
/jlne.ws/48vwmdL
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| Regulation & Enforcement | | Stories about regulation and the law. | CFTC Warns of Potential Dangers for Messaging App Users
CFTC
The Commodity Futures Trading Commission's Office of Customer Education and Outreach today released a customer advisory alerting messaging app users to beware of schemes to defraud them of assets, specifically crypto assets. Fraudsters are exploiting the default settings of commonly used messaging apps, telephone networks, and mobile devices to lure users into crypto pump-and-dump schemes and other scams.
/jlne.ws/4eebE3r
JP Morgan Affiliates to Pay $151 Million to Resolve SEC Enforcement Actions
SEC
The Securities and Exchange Commission today charged J.P. Morgan Securities LLC (JPMS) and J.P. Morgan Investment Management Inc. (JPMIM) - both affiliates of JPMorgan Chase & Co. (JP Morgan) - in five separate enforcement actions for failures including misleading disclosures to investors, breach of fiduciary duty, prohibited joint transactions and principal trades, and failures to make recommendations in the best interest of customers.
/jlne.ws/3YQ6Zzd
SEC Charges Philadelphia-Area Resident with Insider Trading
SEC
The Securities and Exchange Commission today charged Willow Grove, Pennsylvania resident Carlos Sacanell with insider trading ahead of an announcement that CVS Health Corporation, Inc. had agreed to acquire Oak Street Health, Inc. According to the SEC's complaint, Sacanell was in a long-term relationship with a senior executive at Oak Street, who shared with Sacanell material nonpublic information about the CVS/Oak Street transaction in confidence. Sacanell allegedly purchased Oak Street stock and call options based on that information, resulting in him owning more Oak Street call options than any other retail investor and the fifth most overall. The complaint alleges that after the deal was publicly announced, Sacanell's trading resulted in approximately $617,000 in illegal profits.
/jlne.ws/3NMxPmu
SEC Charges Florida Resident with Operating a $1.6 Million Ponzi Scheme Targeting the Serbian-American Community
SEC
Yesterday, the Securities and Exchange Commission ("SEC") charged Pannon Investment Advisors LLC and its Chief Executive Officer, Dusan Varga, alleging they fraudulently raised approximately $1.6 million from at least 20 investors through an unregistered securities offering. Most of the investors are members of the Serbian-American community, and this case is part of the Miami Regional Office's Fraud Against Minority Groups Initiative.
/jlne.ws/4eay0CQ
Parliamentary Joint Committee Opening Statement, 1 November 2024
ASIC
Opening statement by ASIC Chair Joe Longo at the Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into the Oversight Of ASIC, the Takeovers Panel and the Corporations Legislation, 1 November 2024.
/jlne.ws/3YLG2xu
SFC unveils first batch of brokers joining Wealth Management Connect Pilot Scheme
SFC
The Securities and Futures Commission (SFC) today announced 14 licensed corporations (LCs) are eligible to participate in the Cross-boundary Wealth Management Connect Pilot Scheme (WMC) in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) (Note 1). The 14 LCs are China Galaxy International Securities (Hong Kong) Co., Limited, China Industrial Securities International Brokerage Limited, China International Capital Corporation Hong Kong Securities Limited, China Merchants Securities (HK) Co., Limited, China PA Securities (Hong Kong) Company Limited, China Securities (International) Brokerage Company Limited, CITIC Securities Brokerage (HK) Limited, GF Securities (Hong Kong) Brokerage Limited, Guosen Securities (HK) Brokerage Company, Limited, Guotai Junan Securities (Hong Kong) Limited, Huatai Financial Holdings (Hong Kong) Limited, SDICS International Securities (Hong Kong) Limited, Shenwan Hongyuan Securities (H.K.) Limited and Zhongtai International Securities Limited.
/jlne.ws/4ecJQMI
The FSC held 2024 Awards Ceremony to Praise Securities Firms and Futures Firms for their Excellent Performance on Implementing "Treating Customers Fairly Principle"
FSC
On 1 November 2024, the Financial Supervisory Commission ("FSC") held the 2024 Awards Ceremony to praise 10 securities firms and 4 futures firms for their excellent performance on implementation of Treating Customer Fairly Principle (TCFP). The FSC Vice Chairperson, Dr. Yen-Liang Chen, attended the Ceremony and presented the awards in person.
/jlne.ws/4eYHXEJ
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | A European Stock Trader's Guide to the US Presidential Election; European equities underperformed US when Trump was in power'; Autos, renewables and defense stocks in focus ahead of vote
Kit Rees and Michael Msika - Bloomberg
Europe's investors are bracing for a potential victory for Donald Trump, which last time around drove the sharpest underperformance in regional equities relative to US peers during any of the last eight American administrations. The protectionist policies the Republican candidate could unleash on Europe's export-reliant industries if he defeats the Democrats' Kamala Harris explain why some expect history to repeat itself in the stock market.
/jlne.ws/40ucyFD
What the Nuclear Power Revival Means for the Price of Uranium; Could it be a major beneficiary of changes in the US?
Tracy Alloway and Joe Weisenthal - Bloomberg
There's something of a uranium cult out there: the investors and traders who believe that nuclear is the future of energy, and therefore this crucial commodity will end up being a huge winner. And over the last several years, the price has gone up substantially. But what are the economics of the uranium market? And how sensitive is it to some of these power plants that are reopening? On this episode, we speak with commodities guru Bob Brackett, head of Americas energy and transition at Bernstein Research. Bob knows everything about just about every commodity under the sun, so in addition to talking uranium, we get an update on lithium, gold, silver, oil, and more.
/jlne.ws/4eejxWB
Should you ever buy a stock index at a record high? It feels so wrong, but investors (me included) needn't worry so much
Stuart Kirk - Financial Times
While some went gaga this week over the Budget bus fare cap and whether the word "supporters" included an apostrophe, the Lancet published a new Countdown report on health and climate change. It couldn't be seriouser. Ten of 15 indicators of hazards, exposures or impacts hit record levels last year. For example, global data show that almost half the earth's land surface suffered at least one month of extreme drought - up from 15 per cent in the 1980s.
/jlne.ws/3NMgYAp
S&P Global Market Intelligence and MarketAxess partner to improve fixed income transparency and efficiency; The combination of S&P Global's evaluated bond pricing with MarketAxess CP+ is expected to lead to more consistent pricing and greater efficiencies across the trade lifecycle.
Wesley Bray - The Trade
As part of the partnership, S&P Global bond reference data will be integrated into MarketAxess' suite of data products, while MarketAxess CP+ real-time pricing will also be included into S&P Global's evaluated bond pricing.
/jlne.ws/4hu6Mdi
Resona Asset Management selects BBH to bolster FX trading capabilities; Resona becomes the first Japanese investment manager to implement BBH's automated third party FX solution, InfoFX, as part of the development.
Wesley Bray - The Trade
Brown Brothers Harriman (BBH) has expanded its relationship with Japan-based Resona Asset Management to include BBH's automated third party FX solution, InfoFX. The development sees Resona become the first Japanese investment manager to implement the FX solution. InfoFX is a securities-based FX solution that enables automated FX order generation with execution netting capability.
/jlne.ws/40ufBxU
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Oil Interests Gave More Than $75 Million to Trump PACs, New Analysis Shows; Oil moguls are big donors to Donald Trump. But so are engineering firms, hedge fund managers, shipbuilders and others that profit from fossil fuels.
Lisa Friedman - The New York Times
Oil and gas interests have given an estimated $75 million to Donald J. Trump's presidential campaign, the Republican National Committee and affiliated committees, far more than has been previously known, according to a new analysis of federal campaign data. The billionaires Harold Hamm of Continental Resources, Kelcy Warren of Energy Transfer Partners and Jeffery Hildebrand of Hilcorp Energy Co. are among the highest-profile oil and gas contributors to Mr. Trump, giving along with their spouses and companies more than $15 million this cycle.
/jlne.ws/40rOFhY
If Trump Wins, Climate Diplomats Are Ready to Bypass US Role; Secret talks are preparing to keep global cooperation alive under an adversarial US president. A second American withdrawal from the Paris accord could turn leadership over to China.
Jennifer A Dlouhy - Bloomberg
Donald Trump has been clear that he plans to lead another US retreat from global climate diplomacy if he wins a second term in the White House, vowing to once again abandon the landmark Paris Agreement that he calls "horrendously unfair." Environmentalists, government officials and former diplomats are already bracing for the possibility and plotting ways to Trump-proof global cooperation on climate change. A series of conversations, crisis simulations and political wargaming have spanned the globe, described by people familiar with the sessions as galvanized by a desire to maximize climate progress - even with an adversarial US president.
/jlne.ws/48uouJG
BofA Calls Out Liquidity Barriers as Bankers Await CO2 Deal
Natasha White - Bloomberg
In the market for carbon credits, a game-changing global deal looks closer than ever, according to Bank of America Corp. "We may be on the verge of seeing a breakthrough," said Abyd Karmali, managing director, environmental business advisory at Bank of America. Karmali is among senior bankers specialized in trading carbon who'll be monitoring talks in Azerbaijan this month, where the COP29 climate summit will be held. There, negotiators will try to move closer to an agreement to let countries trade carbon reductions with other nations and corporations, under a framework known as Article 6.4.
/jlne.ws/3NPwVpf
If Trump is re-elected, a familiar face may lead the fight against wind: RFK Jr; Former allies have reacted with dismay to Kennedy's alliance with Trump, who routinely mocks the climate crisis
Oliver Milman - The Guardian
Donald Trump has hurled insults at wind energy, calling it "bullshit" and "disgusting" and, if elected US president, may turn to another staunch opponent of offshore wind turbines to help stymie the nascent industry: Robert F Kennedy Jr. Kennedy has emerged as the leading foe of offshore wind in conservative circles and well-connected opposition groups, blaming new turbines, baselessly, for a spate of whale deaths and accusing former friends in the Democratic party of abandoning environmental ideals to the right. Allies see a perfect role for him in advising a new Trump administration crackdown on offshore wind energy.
/jlne.ws/4edy1pM
US Oil Production Hits Another Record, Adding to Supply Worries
Devika Krishna Kumar and Lucia Kassai - Bloomberg
US oil production jumped to a fresh monthly record of 13.4 million barrels a day in August, in what is likely to make OPEC's decision on whether to return supplies to the market more complicated. Much of the growth came from all-time high output in Texas of 5.8 million barrels a day and a fresh record of 2.1 million barrels a day from New Mexico, which together make up the prolific Permian shale basin, latest monthly data from US Energy Information Administration showed on Thursday.
/jlne.ws/4hy3oyf
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Lloyds' Carla Antunes da Silva: How to manage risk to finance growth; Capital markets are crucial in helping firms to navigate the turbulent geopolitical climate, acting as both a catalyst for growth and a long-term stabiliser to effectively handle challenges such as currency risk, interest-rate fluctuations and the increasing cost of capital. In the first of our Euromoney Market Voices series, the CEO of Lloyds Bank Corporate Markets explains how markets are adapting to the challenges of the new normal - and how banks and corporates can take advantage.
Laurie McAughtry - Euromoney
The role of markets in an evolving landscape. "Today, markets are more than just engines of growth - they are vital stabilisers in times of volatility. Markets give businesses the time and means they need to respond to unforeseen challenges. Of course, markets help drive innovation, too, by providing the capital necessary for growth, but their role in buffering against shocks is just as vital. Markets offer tools to manage currency risk and interest-rate fluctuations while providing access to long-term funding, which, in turn, allows businesses to navigate uncertainty with confidence. This dual function - acting as a catalyst for growth and a stabiliser - provides companies with the mechanisms they need for long-term success.
/jlne.ws/3C4Z5Ki
US investment group Ares on course to raise more than $80bn; Credit-focused fund enjoys fastest pace of fundraising as high yields draw investors to private markets
Eric Platt - Financial Times
Ares Management is on course to raise more than $80bn from investors this year, a record sum for the credit-focused investment group, its chief executive predicted on Friday. Michael Arougheti, the head of the $464bn asset manager, said the investment group was benefiting from "heightened demand" for its funds from both institutional and retail investors, who have been drawn to the high yields on offer in private credit.
/jlne.ws/3YLO0Xq
Donald Trump-aligned fund manager Strive jumps into bitcoin; Wealth group doubles down on themes foremost in the ex-president's financial community as election day nears
Patrick Temple-West - Financial Times
Strive Asset Management, the $1.7bn company whose investors include vice-presidential candidate JD Vance and other top players in Donald Trump's inner circle, is jumping into bitcoin for the first time. Strive on Friday said it is hiring new wealth managers and relocating to Dallas from Columbus, Ohio, to better reach family offices and wealthy individuals in conservative-leaning Texas.
/jlne.ws/40MbKwj
Back Office to the Future
Joshua Lloyd-Lyons - Fidelity International Strategic Ventures
The back office has often been seen as the tired, plodding workhorse of the asset management industry: an anachronistic mishmash of legacy systems that is better suited to being put out to pasture than to running in the Grand National. However, after decades of underinvestment by investment managers and limited technological innovation, it is now a top strategic priority. Why now? Market evolution and growing cost pressures. Over the past two decades, the investment landscape has undergone a dramatic transformation. Once dominated by mutual funds, the industry has seen substantial growth in passive investment strategies and a marked decline in actively managed products.
/jlne.ws/4ee0BHk
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | Live Updates: U.S. Job Growth Stalls in Days Before Vote; Employers added 12,000 jobs in October, with hiring hit by strikes and storms. The unemployment rate was steady, at 4.1 percent, in the last major report before an election in which the economy is a top issue for voters.
Lydia DePillis - The New York Times
Job creation stalled in October, with employers adding only 12,000 positions in a month that included a major strike and two destructive hurricanes. Unemployment remained steady at 4.1 percent. The number was significantly lower than economists had expected, suggesting either that disruptions took a larger toll than they had forecast, or that the underlying pace of job growth might be slowing.
/jlne.ws/3ArqXb9
*****This story from The Wall Street Journal.
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Expect Higher Costs for Your Health Care Benefits Next Year; Employers are predicting an increase of as much as 9 percent, on average, but are generally avoiding passing along much of that to their employees, industry groups say.
Ann Carrns - The New York Times
Weight-loss drugs. Cutting-edge gene therapies. In vitro fertilization. All are life-changing, but expensive, medical options that are helping to drive up health care costs next year for employers and their employees. The annual open enrollment period for health benefits is now underway at many workplaces. According to surveys by industry groups and benefit consulting firms, employers expect the costs of those benefits to jump as much as 9 percent on average in 2025, after years of more modest increases. But workers probably won't be asked to shoulder them all. In recent years, employers have assumed much of the cost increases, probably because of a tight job market, said KFF, a nonprofit health research group. And employers may take steps to rein in their costs.
/jlne.ws/4f4o4fx
Varro Receives $20 Million from Vitalik Buterin to Support Development of Cutting-Edge Pathogen Biosensor Technology; Varro to enable improved pathogen detection worldwide by making its proprietary biosensor tech platform available via Open Source
Businesswire
Varro Holdings, Inc. ("Varro"), an emerging leader in products that disrupt the transmission of infectious disease, today announced it has entered into an agreement with Vitalik Buterin to receive 20 million USDC (equal to $20 million) in non-dilutive financial support for the development of its novel pathogen detection technology, and to make the technology available via open source. The funds will be provided via Buterin's scientific finance and direct donation initiative, Kanro.
/jlne.ws/4e5qd9q
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | China pivot from US farm imports bolsters it against trade war risks
Mei Mei Chu and Naveen Thukral - Reuters
China's push to shift its food import sources since 2018 has put it in a better position to impose tit-for-tat tariffs on U.S. farm goods with less harm to its food security if trade friction with Washington flares after the U.S. presidential election. The threat of a trade war looms for China, the world's top importer of farm products such as soybeans and corn, with Republican candidate Donald Trump floating blanket 60% tariffson Chinese goods in a bid to boost U.S. manufacturing.
/jlne.ws/3C67qNX
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