| September 19, 2024 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
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Hits & Takes
John Lothian & JLN Staff
Honoring Legacy: A. Stamford White and the Enduring Impact on Chicago Scouting
Last week I shared the story of Julian S. Rumsey, a founder of the Chicago Board of Trade, former mayor of Chicago and co-founder of the Lake Geneva Yacht Club, and how those institutions and the city were built in part by his leadership. In another week, another institution with deep ties to a former president of the Chicago Board of Trade who helped found it will be holding its 52nd annual fundraiser at Ceres. That organization is the Boy Scouts and the former CBOT president is A. Stamford White
On September 25th, the Pathway to Adventure Council's LaSalle Street Racing to Move Scouting Forward event will be held at Ceres starting at 5:00 p.m. White was a two-time president of the CBOT, serving in 1910 and again in 1918. In 1910, he helped found the Boy Scouts of America and on June 15, 1916 White was listed among the founders on the Congressional Charter for Boy Scouts of America.
In fact, White was the first president of the Chicago Council of the Boy Scouts of America, a predecessor of the Pathway to Adventure Council that the LaSalle Street fundraising event supports. Before he was involved in Scouting, White was the president of the YMCA in Chicago.
He was also the leader of a group of Chicago civic leaders, representing the Chicago Council of the Boy Scouts, who negotiated the purchase and additional donation of land that became the U.S.'s oldest Scout camp, Owasippe. In fact, Owasippe was originally called the A. Stamford White - Owasippe Scout Camp, or simply, Camp White.
When I am soliciting your support for Scouting in Chicago, giving it the funds to help develop leadership skills and character in our youth, it is built upon the timber of the leaders who came before us. A. Stamford White may have perished from influenza in 1918, but the influence of his leadership continues to shine brightly today through the Boy Scouts of America and a strong Scouting program in Chicago.
Intercontinental Exchange (ICE) and IPC Systems have launched ICE Voice, a cloud-based audio solution integrated with ICE Chat. This platform offers seamless communication for traders by combining chat and voice functionalities, leveraging IPC's Connexus Unigy cloud. It supports full audio recording, compliance tracking, and features like Smart Text Recognition and Voice Blasts. Maurisa Baumann of ICE emphasized that the solution is designed to enhance workflow efficiency and communication for financial professionals.
Cboe Global Markets Vice President, Global Head of Client Engagement, Data & Access Henry Schwartz shared on LinkedIn that "Over a million option contracts traded in the 2 minutes following today's half-point interest rate cut. Top ten symbols included SPX and broad-based ETFs SPY, QQQ, IWM, plus a few interesting names including China-ADR JD.com, SoFi technologies and the 3x levered short SQQQ ETF. Despite the rate-cut fueled afternoon rush, overall option volume today was 2% below recent average levels."
Cboe's Natan Tiefenbrun has been named as one of Financial News' Most Influential in European Finance 2024.
John Harwood will be the keynote speaker at Cboe's RMC in Snowbird, Utah, which runs from October 15 to 18. Harwood is the former White House correspondent for CNN and editor-at-large for CNBC.
BestEx Research Founder & CEO Hitesh Mittal published a commentary today titled "RegNMS Amendments: Quick Summary & Impact."
Here are excerpts from in front of FOW's paywall from some recent stories: Miami International Holdings (MIH) has secured a licensing deal with Bloomberg Indices to create equity derivatives, including index futures, options on futures, and cash options, based on Bloomberg's benchmarks. Meanwhile, CME Group hit a record for open interest in SOFR futures ahead of a critical central bank rates meeting. Additionally, Euronext is gearing up for increased competition in Nordic power derivatives and expanding its derivatives portfolio. Singapore's Abaxx Exchange welcomed ADM Investor Services as its third trading member, and LSE Group launched a new cross-asset pricing data tool. ICE is open to reviving its world cotton contract.
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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CFTC Chairman Rostin Behnam will participate in a Fireside Chat at the API/ClearPath Carbon Innovation Forum in New York City on September 23, 2024 from 4:00 p.m. to 4:15 p.m. at Convene, 237 Park Avenue, 2nd Floor New York, NY 10017. ~SR
Our most read stories from our previous edition of JLN Options were:
- Miami International Holdings Announces Index Licensing Agreement with Bloomberg from MIAX.
- Velocity Clearing Expands Operations with New Chicago Office from Velocity Clearing.
- Hedge Fund Titans Breed a $14 Billion Pack of Startup Cubs from Bloomberg. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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ISITC Chair: Financial Industry Overcomes T+1 Settlement Challenges Through Collaboration and Innovation 
As financial firms navigate the transition to T+1 settlement, industry-wide collaboration and innovative solutions have played a key role in addressing operational bottlenecks. Rich Robinson, chairperson of ISITC, highlights how larger firms adapted quickly while smaller firms faced unique challenges with time zones and funding models. Improved same-day affirmation rates and increased automation helped smooth the transition, but Robinson emphasizes that human oversight and ongoing industry coordination remain essential for future developments.
In the shift to T+1 settlement, financial firms across the industry faced significant challenges and had to make substantial adaptations. According to Rich Robinson, chairperson of ISITC, a global industry trade group that focuses on improving operational efficiency and standards in the financial services sector, the most significant changes varied depending on the size and type of firm.
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 LaSalle Street Racing to Move Scouts Forward Fundraiser www.tinyurl.com/LaSalle4Scouts On September 25, the Pathway to Adventure Council of the Boy Scouts of America is hosting the LaSalle Street Racing to Move Scouts Forward event at the Chicago Board of Trade Building. This annual tradition, dating back to 1971, brings together professionals from LaSalle Street to support Scouting in our community. The highlight of the evening will be a pinewood derby race. You'll have the opportunity to build your own car or lease one at the event. It's a fantastic way to tap into your competitive spirit while enjoying cocktails and delicious food with colleagues and friends. Your participation will directly benefit Scouting programs that help develop leadership skills and character in our youth. There are various sponsorship levels available to suit your preferences. The event will be held at Ceres, with plans to move outdoors if weather permits. It's a perfect opportunity to network, have fun, and make a difference. Click Here to Register »
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With AI, Dead Celebrities Are Working Again-And Making Millions; From voiceover work to 'digital human' acting jobs and immersive stage shows, celebrities like Judy Garland, James Dean and Elvis might be dead, but their paychecks are immortal.
Mia Dawkins - Bloomberg
Can you think of a better way to get into the spirit of Halloween than listening to The Legend of Sleepy Hollow read by the ghost of James Dean? The actor's career may have ended tragically in 1955, but his estate is keeping his paycheck alive through artificial intelligence. Alongside the estates of Judy Garland, Laurence Olivier and Burt Reynolds, it signed with AI voice-cloning startup ElevenLabs in July as part of the company's "iconic voices" project. The actors now narrate books, articles and other text material put into ElevenLabs' Reader app; essentially, Garland can now read you The Wonderful Wizard of Oz or your tax return-the choice is yours.
/jlne.ws/3BbePLq
***** This is going to depress the incomes of people who are actually alive.~JJL
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Dutch bank ING to ditch climate laggards as clients; Move to restrict financing to companies that fail to address carbon footprint widens gulf with US lenders
Attracta Mooney - Financial Times
Dutch bank ING will dump large clients it believes are not making sufficient progress on reducing their climate impact, in the latest sign of divergence between European and US banks over the risks of global warming. Chief executive Steven van Rijswijk said ING had put its clients on notice that it would either restrict or stop providing finance to companies that fail to address their carbon footprint on a case-by-case basis.
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***** Wars are won by economics as much as on the battlefield. ~JJL
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Cboe CEO on 'integration fatigue' and what's next for the Chicago-based exchange
Mark Weinraub - Crain's Chicago Business
Market volatility and geopolitical uncertainty are driving more investors toward the United States as they look for the biggest market to hedge risk. The trend benefits the Chicago options exchange's most popular products: its VIX options, which track market volatility, and its S&P 500 index options contracts. "We have got two wars in the world," Tomczyk said. "We have got trade wars, elections and the rise of countries getting more divided. All that sets up for a more volatile market. The market here today has become much more news-driven, event-driven."
/jlne.ws/3XzvEHm
***** Proactive profile piece by Cboe of its 69-year-old CEO who retired seven years ago before getting the Cboe job.~JJL
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Wednesday's Top Three
Our top clicked item Wednesday was Jin Hennig's post on LinkedIn about the CME Precious Metals Dinner last week in NYC, which celebrated CME Metals' 50th anniversary, with Gary Cohn as keynote speaker. Second was Christy Goldsmith Romero's LinkedIn post about her being recognized by the National Asian Pacific American Bar Association with The Daniel K. Inouye Trailblazer Award. Third was the ICE Fixed Income Monthly Report by Chris Edmonds, the president of Fixed Income & Data Services at ICE.
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| Lead Stories | New SEC Rules Will Change the Price of Thousands of Stocks
Bill Alpert - Barron's
New rules that change how stocks are priced, and the cost to trade them, were adopted unanimously at Wednesday morning's meeting of the U.S. Securities and Exchange Commission. The proposals are tamer versions of the ambitious revamp of American stock trading that SEC Chair Gary Gensler proposed two years ago. In an outcome that has been rare in recent years, the commission's Republican members joined the Democrat majority in voting for the changes. Still, the new rules could affect the revenue of stock-exchange operators such as Nasdaq and Intercontinental Exchange, parent of the New York Stock Exchange. Those exchange operators were not happy with change. One new rule will reduce the smallest increment for a stock-price quote from today's one penny, to half a cent on popular stocks where there is evidence that bids and offers would appear at those narrower spreads. The new quote increments, commonly known as "ticks," will apply to stocks priced above $1, narrowing the spread between the best bid and offer.
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As Tokyo Extends Stock Trading Hours, Concerns Grow It Could Stoke Volatility; Trade volumes may not rise while liquidity could shrink; Lack of anti-gaming measures at closing auction raises worries
Hideyuki Sano - Bloomberg
Japanese equities may become more volatile after the Tokyo Stock Exchange extends its trading hours in November, with the risk that investors might be scared off as it comes on the heels of last month's market crash. The Japanese bourse will increase the equities trading hours by 30 minutes beginning Nov. 5, pushing back the cash market's close to 3:30 p.m. and lengthening the daily session to 5 1/2 hours. The exchange will also introduce a closing auction session to accommodate the increased trading volumes at the end of the day.
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SEC cuts tick size for stock market trades to a half penny; Regulator softens complex initial proposal after industry pushback
Jennifer Hughes - Financial Times
US regulators dumped long-standing penny limits on share trading prices and cut the fees exchanges can charge their users in new equity market rules that nonetheless ended far short of more radical initial plans. Wednesday's changes are the second piece of a broader four-part shake-up of US stock trading first proposed in December 2022 by the Securities and Exchange Commission. Combined, the plans represent the biggest changes to the stock market's structure in 20 years. They have been one key element in the ambitious reform agenda pursued by SEC chair Gary Gensler.
/jlne.ws/3BdErHB
Currency Traders Are Becoming 'Algo DJs' as AI Alters Roles; Dealers will need to learn wider range of skills to survive; Traders are skeptical AI will remove need for human oversight
Alice Atkins - Bloomberg
Algorithmic trading is radically changing the role of currency dealers, leading them to question who will be responsible for the growing reliance on computer models. Buy-side currency traders say the advancements in technology have already altered their day-to-day jobs, but they are skeptical that artificial intelligence will fully eradicate the need for human oversight, market participants said at the TradeTech FX conference in Amsterdam this week.
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London's cocoa market blighted by 'poisoned pill'; Poorer quality stock in UK warehouses has led to a rare divergence in prices with the New York market
Susannah Savage - Financial Times
A frantic hunt by chocolate manufacturers for high-grade cocoa has left a backlog of old, poor-quality beans lying in London's warehouses, leading to a rare divergence in prices between the UK and the US. Last month cocoa futures traded in New York rose strongly, peaking above $10,000 last week, while London prices fell, dipping below $6,400 earlier this month. Despite a sell-off in recent days, US prices are down just 3 per cent since the start of last month, compared with a 16 per cent drop for the UK contract.
/jlne.ws/4eamTKW
AI risks making some people 'uninsurable', warns UK financial watchdog; FCA's Nikhil Rathi says insurance sector should still 'experiment' with the technology
Martin Arnold and Ian Smith - Financial Times
Consumers risk becoming "uninsurable" due to artificial intelligence systems in the sector, the head of Britain's financial watchdog has warned, despite calling for the insurance industry to be more "willing to experiment" with new technology. "We want safe and responsible use of AI to drive beneficial innovation," said Nikhil Rathi, chief executive of the Financial Conduct Authority, in a speech on Thursday. "But also an open conversation about the risks and trade-offs."
/jlne.ws/3XNKATv
Europe must not tie its hands in the fight against corporate power; Market concentration is a political problem as well as an economic one - EU competition policy should reflect that
Max von Thun - Financial Times
Last week, as she prepared to step down after a decade as the EU's competition commissioner, Margrethe Vestager saw her efforts to force Apple to pay back taxes and to crack down on Google's abuse of its market power vindicated by the European Court of Justice. While Vestager could and should have gone further, she deserves credit for putting competition enforcement back on the map. European Commission president Ursula von der Leyen has appointed Teresa Ribera, currently Spain's deputy prime minister, as Vestager's replacement. One immediate challenge Ribera faces is that her portfolio is far broader than her predecessor's - not only must she handle competition, she also has to ensure the EU meets its climate targets and lowers energy prices while driving forward a new "clean industrial deal".
/jlne.ws/4euuQdH
Lloyd's of London appoints Charles Roxburgh as chair; Insurance market names successor to Bruce Carnegie-Brown
Ian Smith - Financial Times
Lloyd's of London has named Treasury veteran Sir Charles Roxburgh as its new chair, replacing Bruce Carnegie-Brown in one of the insurance institution's most senior roles. Roxburgh will take up the position at the start of May 2025, subject to approval from regulators, Lloyd's said on Thursday. Lloyd's, based at the famous inside-out building in central London, houses a centuries-old market made up of more than 50 insurers and hundreds of brokers, selling specialist insurance and reinsurance policies covering everything from ship crashes to cyber attacks.
/jlne.ws/4e90Q7w
TD Names Chun CEO as Masrani to Retire Amid US Investigation
Christine Dobby - Bloomberg
Toronto-Dominion Bank said Chief Executive Officer Bharat Masrani will retire in April and Raymond Chun will take the top job, as the bank grapples with investigations by the Department of Justice and financial regulators into lapses of money-laundering controls at its US branches. Chun, who's currently head of TD's Canadian retail division, will join the board and become chief operating officer on Nov. 1, Canada's second-biggest bank said in a statement Thursday. He'll officially become CEO on April 10.
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JPMorgan appoints banker to oversee juniors' 'wellbeing'; Appointment comes as industry's working conditions come under fresh scrutiny
Joshua Franklin - Financial Times
JPMorgan Chase has tasked one of its bankers with overseeing the company's junior banker programme, a response to renewed concerns about working conditions for young employees on Wall Street. JPMorgan, the largest US bank by assets and often a bellwether for the industry, named Ryland McClendon as the global investment banking associate and analyst leader, according to a memo sent to employees earlier this month.
/jlne.ws/4gsNYe1
The Clean Jet-Fuel Technology Winning Over Wall Street; Startup doing 'industrial photosynthesis' raises $645 million in one of the sector's biggest investments ever
Amrith Ramkumar - The Wall Street Journal
Cutting emissions from aircraft is one of the toughest challenges in the energy transition. A small group of startups say they have an answer, and investors are racing to give them cash. The latest is a company called Twelve, which raised $645 million from backers including the private-equity firm TPG and Alaska Airlines in one of the largest investments ever for clean jet fuel.
/jlne.ws/3BbIjJ4
Get Ready to See Stock Prices in Half-Pennies; Regulators vote to reduce minimum price increments for some stocks
Alexander Osipovich - The Wall Street Journal
Stock prices in half-cents are coming soon to a brokerage near you. The Securities and Exchange Commission on Wednesday approved a change to market rules that would cause the prices of many stocks to be quoted in increments of $0.005. The rule change-which could potentially affect thousands of stocks and exchange-traded funds-is part of an overhaul of market plumbing that SEC Chair Gary Gensler initiated after the GameStop trading frenzy of early 2021. It was approved in a unanimous vote by the agency's five commissioners, including two Republicans who have in the past opposed elements of Gensler's agenda.
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Federal Reserve issues FOMC statement
Board of Governors of the Federal Reserve System
Recent indicators suggest that economic activity has continued to expand at a solid pace. Job gains have slowed, and the unemployment rate has moved up but remains low. Inflation has made further progress toward the Committee's 2 percent objective but remains somewhat elevated. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee has gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly in balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate.
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Gamestop CEO Fined $1 Million by FTC Over Wells Fargo Shares; Cohen failed to file form after shares passed threshold: FTC As he amassed shares, he sought board seat, agency alleges
Sally Bakewell and Hannah Levitt - Bloomberg
Gamestop Corp. Chief Executive Officer Ryan Cohen will pay almost a $1 million penalty over allegations that he violated antitrust law with his acquisition of shares in Wells Fargo & Co. Cohen failed to file a form he was required to submit to antitrust agencies under the Hart-Scott-Rodino Act after his Wells Fargo share purchases exceeded a certain threshold, according to a statement Wednesday from the Federal Trade Commission.
/jlne.ws/47OoaVX
As Flood Waters Recede, Europe Faces the Financial Reckoning; What's already clear is that the Polish and Czech economies will take a knock and government coffers are going to get more stretched.
Natalia Ojewska and Andrea Dudik - Bloomberg
The tiny Polish village of Romnow is a hive of activity. With the help of soldiers and the local fire service, men, women and children have formed a makeshift production line to pack sandbags one after the other to be loaded onto tractors heading toward the river. The worry is that a nearby reservoir in the area around the city of Wroclaw will overflow, thrusting water downstream. Residents don't know how much time they have left to secure their homes and minimize devastation.
/jlne.ws/3ZC04LE
Commerzbank Still Isn't Right for Deutsche Bank; Germany's biggest lender is better off sticking to its self-improvement plan for now.
Paul J. Davies - Bloomberg
Since Italy's UniCredit SA put Commerzbank AG in play, Deutsche Bank AG needs to consider its options. A takeover bid for its German rival doesn't make sense and labor unions would hate it, but buying a stake could be a good idea. A seat at the table would help Deutsche Bank protect its interests, or at least turn a profit by raising the price for a takeover. UniCredit has a 9% stake in Commerzbank after winning an auction for shares owned by the German government last week. Andrea Orcel, the Italian bank's chief executive officer, is expected to ask European regulators for permission to acquire up to 30% of the lender to Germany's small and mid-sized companies and is keen ultimately to merge the entire bank with UniCredit's existing German unit, HVB.
/jlne.ws/4dbsxuX
Untangling credit and liquidity in FX; Prime brokerage and peer-to-peer liquidity were just some of the solutions explored by TradeTech FX panellists looking to access diversified liquidity sources in light of the reduction in warehousing by banks.
Annabel Smith - The Trade
Central to many discussions on stage at TradeTech FX this week was the need to untangle credit and liquidity in order to allow the buy-side to future proof their trading workflows. Historically market structure in foreign exchange (FX) has lent itself to ISDA-based, direct bilateral trading, meaning buy-side firms - in particular real money firms who don't have the capabilities to use a prime broker model - are often locked into these relationships with banks based on credit lines.
/jlne.ws/3XzBpVo
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Russia May Have Stockpiled Its Best Missiles At An Arsenal In The Town Of Toropets. Which Is Why Ukraine Just Blew It Up With 100 Drones.
David Axe - Forbes
In the pre-dawn hours on Tuesday, a large flock of Ukrainian drones winged north from Ukraine all the way to Toropets, a town in western Russian that hosts the 107th Arsenal, a sprawling ammunition dump feeding the Russian force fighting in Ukraine, 300 miles to the south. The arsenal exploded with enough force to register as a small earthquake, draw the attention of NASA fire-spotting satellites and compel local authorities to order an evacuation of nearby residents. A lot of Russian munitions went up in flames.
/jlne.ws/3XwAK7h
Putin Is Under Pressure to Call Up More Troops for War of Attrition; The Russian leader earlier this year rebuffed Defense Ministry officials who had tried to convince him they needed more soldiers
Thomas Grove - The Wall Street Journal
Months before President Vladimir Putin's inauguration in May, he met with Defense Ministry officials who pushed for a fresh round of mobilization to recruit more troops to offset Russia's losses on the front line in Ukraine, said a person briefed on the exchange. Putin dismissed the idea, saying he wanted to use only those who were voluntarily signing military contracts, the person said.
/jlne.ws/3XvtgS3
Exclusive-Ammunition from India enters Ukraine, raising Russian ire
Krishn Kaushik - Reuters
Artillery shells sold by Indian arms makers have been diverted by European customers to Ukraine and New Delhi has not intervened to stop the trade despite protests from Moscow, according to eleven Indian and European government and defence industry officials, as well as a Reuters analysis of commercially available customs data. The transfer of munitions to support Ukraine's defence against Russia has occurred for more than a year, according to the sources and the customs data. Indian arms export regulations limit the use of weaponry to the declared purchaser, who risks future sales being terminated if unauthorised transfers occur.
/jlne.ws/3Zqpf3W
Putin is embarking on an aggressive hiring drive to rejuvenate Russia's army. But he can't sustain it, experts say.
Kwan Wei Kevin Tan, Mia Jankowicz - Business Insider
Russian President Vladimir Putin wants to grow his country's armed forces, but experts say his ambitions could come at the expense of Russia's economy. On Monday, Putin ordered the army to increase its troops by 180,000, per a decree published by the Kremlin. This will raise the overall number of Russian military personnel to 2.38 million people, with 1.5 million of them being active soldiers.
/jlne.ws/4e3rrTo
New iPhone 16 unveiled in Russia as retailers skirt Apple's export ban
Reuters
Russian retailers have launched pre-sales of Apple's latest iPhone, circumventing the company's export ban to Russia and giving consumers the chance to pre-order devices hundreds of dollars more expensive than in the United States. Russia's leading electronics retailer M.Video-Eldorado and mobile network operator MTS both claimed on Thursday to be the first in Russia to unveil Apple's new iPhone 16.
/jlne.ws/4e6ORHr
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Israel declares new phase of war after walkie-talkie bomb attacks; Second wave of remote-controlled explosions in Lebanon emphasises shift in military focus to tackling Hezbollah, Israel's enemy to the north
Roland Oliphant, Senior Foreign Correspondent and Jotam Confino in Tel Aviv - The Telegraph
Israel has declared a new phase of war after it was accused of being behind a second wave of remote-controlled explosions in Lebanon. Hundreds of walkie-talkie radios and other electronic devices began exploding in Lebanon on Wednesday afternoon during the funeral for Hezbollah fighters killed in a near-identical attack on pagers the previous day. Lebanon's health ministry said 20 people had been confirmed killed and a further 450 wounded. Hezbollah fired 20 rockets into Israel following the blasts, Israeli officials said. All were intercepted.
/jlne.ws/47vWm8w
Walkie-Talkies in Lebanon Blasts Were Discontinued a Decade Ago
Eddy Duan - Bloomberg
Japan's Icom Inc., whose brand appears on walkie-talkies that exploded in Lebanon, said it halted production a decade ago of the model allegedly used in the attacks and is still investigating the situation. Icom exported its IC-V82 two-way radio to regions including the Middle East until October 2014, when it stopped making and selling the devices, the Osaka-based company said in a statement Thursday. It has also discontinued production of the batteries needed to operate the main unit, it said. The company earlier had warned customers that almost all IC-V82s on the market are counterfeit.
/jlne.ws/3ZBXCoq
Pentagon Worries Israel Is Close to Launching Ground War in Lebanon; Wave of exploding electronic devices used by Hezbollah members could be a prelude to a wider attack
Alexander Ward, Nancy A. Youssef and Lara Seligman - The Wall Street Journal
A wave of deadly explosions of pagers and other electronic devices carried by militants in Lebanon has sharply heightened Pentagon concern about a potential ground war erupting in southern Lebanon between Israel and Hezbollah. Even before the hundreds of widely dispersed detonations Tuesday and Wednesday, U.S. Defense Secretary Lloyd Austin told other senior Pentagon officials in a Monday meeting that he feared Israel could soon launch an offensive, after months of back-and-forth rocket and air attacks with Hezbollah, an Iranian-backed militia group that controls much of southern Lebanon.
/jlne.ws/3Blq7g3
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Miami International Holdings and Bloomberg unveil index licensing agreement; The move will "bring much-needed competition to the equity index derivatives industry," said Thomas Gallagher, chair and chief executive of Miami International Holdings (MIH).
Claudia Preece - The Trade
Miami International Holdings (MIH) and Bloomberg Index Services have entered into a licensing agreement to develop a suite of index futures, options on futures, and cash options products. The offering is based on Bloomberg Indices' portfolio of benchmarks and combines MIH's expertise in operating the relevant exchanges with Bloomberg's advanced technological capabilities to "bring much-needed competition to the equity index derivatives industry," said Thomas Gallagher, chair and chief executive of MIH.
/jlne.ws/3BbK9ts
Boerse Stuttgart Digital provides crypto infrastructure to DZ BANK, giving cooperative bank customers access to cryptocurrencies
Boerse Stuttgart
Safe and easy access to regulated cryptocurrency trading and custody services for retail customers // Milestone for mass crypto adoption in Europe // Phased roll-out to already start this year.
/jlne.ws/47yh8nW
CME Group SOFR Futures Reach New Volume and Open Interest Records
CME Group
CME Group, the world's leading derivatives marketplace, today announced that its deeply liquid SOFR futures reached a new, all-time record average daily volume (ADV) of 5.4 million contracts in September and an open interest record of 13,159,646 contracts on September 17. Additionally, SOFR futures now have a record 1,144 large open interest holders (LOIH), based on the CFTC's latest Commitments of Traders report.
/jlne.ws/3B2oBPR
LSEG launches new cloud-based enterprise data solution; Named DataScope Warehouse, the new offering will provide access to LSEG's fixed income and legal entity data record and query data for global exchange-traded instruments.
Wesley Bray - The Trade
The London Stock Exchange Group (LSEG) has launched a new cloud-based, ready-to-use enterprise data solution. Named DataScope Warehouse, the new solution offers cloud-based access to LSEG's fixed income and equity data records. The solution supports Structured Query Language (SQL), allowing users to explore and query the pricing and reference database. Cloud collaboration is also facilitated by the solution, offering access to LSEG data via any cloud partner.
/jlne.ws/4e8mwR5
Change in Interest Rate on USD Cash Balances - Effective September 19, 2024
CME Group
Update to interest rate paid on USD cash balances.
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CME Globex Notices: September 16, 2024
CME Group
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Large Trader Reporting Under CFTC Part 17
CME Group
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CME STP Notices: September 19, 2024
CME Group
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Argentina's BYMA to Adopt Nasdaq's Clearing Platform
Nasdaq
Nasdaq (Nasdaq: NDAQ) and BYMA, Argentina's leading stock exchange group, today announced a significant expansion of their technology partnership that will see BYMA base its entire post-trade ecosystem on Nasdaq technology. Under the terms of the agreement BYMA will adopt Nasdaq's real-time clearing platform at its central counterparty clearinghouse (CCP), complementing Nasdaq's existing technology partnership with Caja de Valores, Argentina's central securities depository, which is also owned by BYMA.
/jlne.ws/3B4qZWk
OCC's Business Continuity Management System Achieves Certification to ISO 22031
OCC
OCC is pleased to announce that on Monday, September 2, our organization achieved certification to ISO 22031 for our Business Continuity Management System (BCMS). This certification is issued by BSI, the business improvement and standards company.
ISO 22031 provides an internationally recognized framework for organizations to plan, establish, implement, operate, monitor, review, maintain and continually improve a documented BCMS to protect against, reduce the likelihood of and ensure recovery from disruptive incidents. Achieving this certification will help enhance OCC's organizational resilience, improve risk management processes, ensure a systematic response to crises, and increase trust among stakeholders.
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Apple Gets EU Warning to Open Up iPhone Operating System; EU announces efforts to pull Apple into compliance with rules; Apple previously said it would hold back future tech from EU
Samuel Stolton - Bloomberg
Apple Inc. has been warned by the European Union to open up its highly guarded iPhone and iPad operating systems to rival technologies, or eventually risk significant fines under its flagship digital antitrust rules. EU watchdogs announced under the bloc's Digital Markets Act that Apple must step into line with strict new laws on making operating systems fully functional with other technologies. The Brussels-based authority gave the company six months to comply, or face the threat of future penalties.
/jlne.ws/4gynOq4
Inside the Bank of London, the unicorn that had an 'immediate' need for cash; Fintech's short history includes leasing Archegos's old offices and hiring a convicted fraudster
Akila Quinio, Ortenca Aliaj and Robert Smith - Financial Times
In December 2021, the Bank of London unveiled a glitzy US headquarters in New York. It was part of a global expansion for the start-up bank founded by former Barclays executive Anthony Watson, which boasted former Goldman Sachs heavyweight Harvey Schwartz and Labour grandee Peter Mandelson on its board. The offices had a troubled history: they once housed the now defunct family office Archegos Capital Management, whose implosion helped bring down banking giant Credit Suisse with it.
/jlne.ws/3XR8IoB
Clearwater Analytics Launches New Standard in Corporate Treasury Benchmarking; Clearwater Insights Empowers Financial Leaders with Comprehensive Investment Data for Strategic Peer Benchmarking
Clearwater Analytics
Clearwater Analytics (NYSE: CWAN), a leading worldwide provider of SaaS-based investment management, accounting, reporting, and analytics solutions, has launched Clearwater Insights, a powerful peer benchmarking solution. This new product provides Chief Financial Officers (CFOs) and treasury teams with powerful capabilities to conduct benchmarking analyses across Clearwater's daily investment data portfolio, enabling superior decision-making and return optimization.
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So, You Think You Know ChatGPT? Take Our Quiz and Find Out; How many people actually use ChatGPT? What does GPT stand for? And other questions worth pondering.
Cheryl Winokur Munk - The Wall Street Journal
Since its public debut in 2022, the chatbot ChatGPT from OpenAI has quickly taken center stage in discussions about artificial intelligence and its tools, including large language models. But while use of the chatbot is growing, exactly what it is and what it does remain an enigma to many. How much do you really know about ChatGPT, its origins and founders, and about other large language models? Take this quiz to find out.
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Artificial Intelligence Wasn't Born Yesterday; AI research started in the 1950s. A look at the past helps us better understand and predict its future.
David Gelernter - The Wall Street Journal (opinion)
It's great to see money pouring into industrial artificial-intelligence research, but many investors don't seem to know much about it or where the field is headed. Some investors know just as little about the history of software. The topic is rarely taught in today's STEM-focused colleges. As AI improves, new ethical problems develop-though in some cases they're merely old problems in new forms. The rise of ChatGPT, for example, has sometimes required teachers to distinguish software-written from student-written prose. A teacher who accepts ChatGPT-type prose from his students isn't teaching much-certainly not how to write.
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Meta to European Union: Your Tech Rules Threaten to Squelch the AI Boom; Facebook parent, other companies warn in open letter that the bloc's regulations risk hampering innovation and economic growth
Kim Mackrael - The Wall Street Journal
A group of companies including Meta Platforms, Spotify and Italian luxury-fashion giant Prada warned Thursday that the European Union risks missing out on the full benefits of artificial intelligence because of the bloc's tech regulations. In an open letter that was coordinated by Meta, executives from more than two dozen companies said AI can boost productivity and expand the economy, but Europe might reap fewer rewards than other jurisdictions.
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Startup Founded by Ex-Google Exec to Use AI to Forecast Weather; Brightband raised $10 million in Prelude Ventures-led series A; Firm says its predictions will be faster than current methods
Lauren Rosenthal - Bloomberg
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Stellar live with co-location access to India's NSE, SGX India Connect
Gregory Rosenvinge - FOW
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| Cybersecurity | | Top stories for cybersecurity | FBI says it has disrupted major Chinese hacking operation that threatened US critical infrastructure
Sean Lyngaasn - CNN
The FBI has used a court order to seize control of a network of hundreds of thousands of hacked internet routers and other devices that Chinese government-linked hackers were using to threaten critical infrastructure in the US and overseas, FBI Director Christopher Wray said Wednesday. "It is just one round in a much longer fight," Wray said in a speech at the Aspen Cyber Summit in Washington, DC. "The Chinese government is going to continue to target your organizations and our critical infrastructure."
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Court-Authorized Operation Disrupts Worldwide Botnet Used by People's Republic of China State-Sponsored Hackers
U.S. Department of Justice
The Justice Department today announced a court-authorized law enforcement operation that disrupted a botnet consisting of more than 200,000 consumer devices in the United States and worldwide. As described in court documents unsealed in the Western District of Pennsylvania, the botnet devices were infected by People's Republic of China (PRC) state-sponsored hackers working for Integrity Technology Group, a company based in Beijing, and known to the private sector as "Flax Typhoon."
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Hackers demand $6 million for files stolen from Seattle airport operator in cyberattack
AP Newswire via The Independent
Hackers are demanding $6 million in bitcoin from the operator of the Seattle-Tacoma International Airport for documents they stole during a cyberattack last month and posted on the dark web this week, an airport official said Wednesday. The Port of Seattle, which owns and runs the airport, has decided not to pay, the official said. The airport previously linked the attack to a ransomware gang called Rhysida, and now the FBI is conducting a criminal investigation, said Lance Lyttle, the port's managing director of aviation. Lyttle told a U.S. Senate committee that the airport appears to have stopped the attack, but the hackers were able to encrypt some data.
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| Cryptocurrencies | | Top stories for cryptocurrencies | Three Ways DeFi Will Revolutionize Financial Services
Bill Barhydt - CoinDesk
It's widely accepted that our current banking system has significant flaws. Beyond systemic and geopolitical risks - like restricted borders, time zone barriers, and central bank dependencies - there are challenges with bank wires, international settlements, and the inconsistent availability of credit. A fundamental issue lies in the mismatch between banks' balance sheets and their leverage. When a bank faces liquidity or insolvency issues, as seen with First Republic and Silicon Valley Bank in March 2023, depositors risk becoming creditors in a bankruptcy unless the government intervenes - leaving taxpayers to cover the fallout.
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'Supposed' Crypto DeFi Platform Operators Settle With SEC; SEC accused Rari Capital of acting as an unregistered broker; Operators also accused of offering unregistered securities
Olga Kharif - Bloomberg
The US Securities and Exchange Commission has settled charges against Rari Capital Inc., a "supposed" decentralized finance protocol, and its founders for misleading investors and acting as an unregistered broker for investment platforms that once held more than $1 billion in assets. Rari Capital offered two investment products, which worked like crypto asset investment funds and let investors deposit tokens into lending pools and earn returns. Investors in the pools received a token representing their interest in the pools and the right to receive profits earned by the pools. Certain investors also received a governance token, called the Rari Governance Token, or RGT. With both tokens, Rari engaged in unregistered offers and sales of securities, the SEC said in a statement Wednesday.
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Bitcoin Hater Jamie Dimon Brags That JPMorgan Is a 'Real' Blockchain User; JPMorgan Chase boss Jamie Dimon has said his bank is one of the "bigger" users of the blockchain-but he still hates Bitcoin.
Mat Di Salvo - Decrypt
JPMorgan Chase boss Jamie Dimon may not like Bitcoin or cryptocurrency-but his bank is one of the "bigger users" of its underlying technology. Billionaire banker Dimon said Tuesday that his bank-one of the largest in the world-was one of the biggest "real" users of the blockchain. "[JPMorgan Chase] is probably one of the bigger users of blockchain. A real user-an actual user-as opposed to sex trafficking," he said in an interview at the Georgetown Psaros Center for Financial Markets and Policy.
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Brian Armstrong, ETF Experts Shoot Down 'Paper Bitcoin' Rumors
Helene Braun - CoinDesk
Rumors alleging Coinbase (COIN) was issuing bitcoin IOUs to BlackRock were quickly shut down by industry experts as well as Coinbase CEO Brian Armstrong on Monday. Over the weekend, well-followed X crypto analyst "Tyler Durden" accused Coinbase of allowing BlackRock - the issuer behind the largest spot bitcoin exchange-traded fund - to borrow bitcoin without providing collateral, which would allow manipulation of the market and profit from the resulting price swings
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Wyoming's Stablecoin Plan Is Latest Crypto Push by Cowboy State; Latest project aims to popularize tokens for everyday spend; Before achieving consumer adoption, steep learning curve ahead
Emily Mason - Bloomberg
It turns out that the high plains and majestic mountains of Wyoming are a hotbed of activity when it comes to laying out the groundwork for crypto regulation. The least populated state's select committee on blockchain has put forth dozens of pieces of legislation over the last five years. And just last month, Wyoming announced plans to launch a dollar-backed token by early 2025, which aims to lower consumer payment costs using blockchain technology.
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Speak your brains: CBDC edition; Solution (M, 16) seeks problem
Bryce Elder - Financial Times
When designing a survey, a person can reference the huge body of academic research on best practices, or they can not. Here's a demonstration of one of those approaches: Yes, OK. We've already had one pop at Deutsche Bank's consumer survey of opinions on crypto, but since its findings are back in our inbox today, here's another. Relative to previous examples, the above methodology is not bad. There's a "don't know" opt-out, and an attempt to mitigate the respondents' bias when comparing acceptance of something that exists (crypto) with something that doesn't (central bank crypto). The survey size, 4,850, is decent.
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| Politics | | An overview of politics as it relates to the financial markets | That Time Donald Trump Walked Into a Bar and Bought a Round Using Bitcoin; Republican presidential nominee made unusual campaign stop in New York, seeking to further bolster his support from crypto fans
Alex Leary and Vicky Ge Huang - The Wall Street Journal
A former president walks into a dive bar and asks, "Who wants a hamburger?" He pulls out an iPhone and pays not with dollars but with bitcoin. "History in the making," Donald Trump declared Wednesday after making the transaction at PubKey, a Greenwich Village tavern that is the it spot for crypto enthusiasts-a rising financial and political force that Trump is hoping will help him return to the White House.
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The West has finally declared war on Russian disinformation; Putin aims to discredit liberal democracy at home and abroad, and social media gave him a platform to do so
Samuel Ramani - The Telegraph
As the November 5 presidential elections near, big tech has finally taken a firm stand against Russian election interference. Meta announced that it would ban RT and Rossiya Segodnya, which runs Sputnik and RIA Novosti, from its apps. Meta's decision reflects the hardening of US official policy towards Russian state media. The US Department of State recently warned that RT has morphed from being a media outlet into an "entity with cyber capabilities." The US Department of Treasury also sanctioned RT for funneling cash to Right-wing outlet Tenet Media, which ensnared conservative influencers Benny Johnson and Dave Rubin.
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Microsoft Executive Warns of Election Meddling in Final 48 Hours; Tech executives testify to Senate on foreign interference risk; Meta, Google, Microsoft said foreign actors are using AI
Emily Birnbaum and Oma Seddiq - Bloomberg
President Brad Smith warned the danger of foreign interference in the US election will surge in the final two days of the presidential campaign. "The most perilous moment will come, I think, 48 hours before the election," Smith told the Senate Intelligence Committee on Wednesday. Smith said that was the "lesson to be learned" from the Slovakian election last fall, in which fake audio of one of the top candidates circulated online days before the election.
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Europe must prepare to meet Russia militarily in 6-8 years, says its new defence chief
Andrius Sytas - Reuters
The European Union must be quick to increase its defences as Russia may be ready for a confrontation in six to eight years, the nominee to be the EU's first defence commissioner told Reuters in an interview. Andrius Kubilius, a former prime minister of Lithuania, Russia's neighbour, has been tapped to boost the continent's arms industry, by getting EU countries spend more on European weapons and procure jointly - as well as by getting companies themselves to cooperate more across borders.
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| Regulation & Enforcement | | Stories about regulation and the law. | DOJ Sees Tips Flow in Over First Month of Pilot Whistleblower Program; The program has so far named an acting director and has assembled a team of prosecutors from three units
Mengqi Sun - The Wall Street Journal
The U.S. Justice Department has begun building out its new pilot whistleblower program, and so far has received reports from more than 100 tipsters since it was launched last month, a senior department official said. The highly anticipated cash-for-tips program, announced in March, was officially launched on Aug. 1. The department has named Patrick Gushue, a trial attorney in the money-laundering and asset-recovery section, as the program's first acting director and has assembled a team of prosecutors from three divisions to staff it, according to Brent Wible, chief counselor in the Justice Department's criminal division.
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FATF Asks for Tighter Checks on India's Precious Metal Deals; Watchdog says cash transactions make deals hard to monitor; Too early to evaluate supervision of virtual asset providers
Preeti Soni - Bloomberg
India must tighten checks on transactions involving precious metals and stones as several of these deals are conducted in cash and fall outside the purview of typical monitoring procedures, according to a global anti-money-laundering watchdog. The South Asian nation, one of the world's biggest importers of gold and an important processor and exporter of diamond jewelry, has about 175,000 businesses in this sector, but only some 9,500 are registered with the Gem and Jewellery Export Promotion Council that verifies proof of identity, the Financial Action Task Force said in its report Thursday.
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Hong Kong regulator relaxes rules on sharing China ETF research; Uptake of funds sold via ETF Connect has been hindered by strict interpretation of rules preventing promotion
John Sedgwick - Financial Times
Hong Kong's securities regulator has relaxed rules on the sharing of research with investors on mainland China-listed exchange traded funds that can be accessed by local investors via the Stock Connect schemes. The Hong Kong-China ETF Connect was launched in July 2022 to provide investors with mutual access to eligible ETFs on mainland China and Hong Kong exchanges. But uptake has been hindered by strict regulations preventing fund firms from promoting their ETFs in the cross-border jurisdiction and restricting distributors from offering ETF product information to investors.
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Justice Department probing banks for alleged collusion in $36B Archegos liquidation: report
Ariel Zilber - NY Post
The Justice Department is investigating several large banks for allegedly colluding during the liquidation of convicted fraudster Bill Hwang's ill-fated $36 billion investment firm Archegos Capital Management, according to a report. Federal investigators in San Francisco are looking into whether Credit Suisse, Nomura Holdings and UBS Group conspired with one another in order to control prices and minimize losses totaling $10 billion while conducting emergency talks to liquidate Archegos in March 2021, according to Bloomberg News.
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SEC Charges DeFi Platform Rari Capital and its Founders With Misleading Investors and Acting as Unregistered Brokers; Rari Capital also charged for engaging in unregistered crypto offerings
SEC
The Securities and Exchange Commission today announced settled charges against Rari Capital, Inc., a supposed decentralized finance (DeFi) protocol, and its co-founders, Jai Bhavnani, Jack Lipstone, and David Lucid, for misleading investors and engaging in unregistered broker activity in connection with their operation of two blockchain-based investment platforms that, at their peak, collectively held crypto assets worth more than $1 billion. Rari Capital also settled SEC charges that it conducted unregistered offerings of three securities tied to those platforms. In a separate order, Rari Capital Infrastructure LLC, which took over operations from Rari Capital in 2022, settled charges that it engaged in unregistered securities offerings and unregistered broker activity.
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SEC Charges Broker-Dealer First Horizon With Regulation Best Interest Violations; Firm's structured note recommendations violated Reg BI's compliance obligation
SEC
The Securities and Exchange Commission today announced charges against registered broker-dealer First Horizon Advisors, Inc. for failing to maintain and enforce policies and procedures reasonably designed to achieve compliance with Regulation Best Interest (Reg BI). The charges relate to First Horizon's recommendations of a type of derivative security called a structured note. First Horizon agreed to pay a civil penalty of $325,000 to resolve the SEC's charges.
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SEC Adopts Rules to Amend Minimum Pricing Increments and Access Fee Caps and to Enhance the Transparency of Better Priced Orders
SEC
The Securities and Exchange Commission today adopted amendments to certain rules under Regulation NMS to adopt an additional minimum pricing increment, or "tick size," for the quoting of certain NMS stocks, reduce the access fee caps for protected quotations of trading centers, increase the transparency of exchange fees and rebates, and accelerate the implementation of rules that will make information about the market's best priced, smaller-sized orders publicly available. The amendments are designed to reduce transaction costs and improve market quality for all investors and to help ensure that orders placed in the national market system reflect the best prices available for all investors.
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Statement on Minimum Price Increments, Access Fee Caps, Round Lots, and Odd-Lots
Chair Gary Gensler - SEC
Today, the Commission will consider updating rules for the $55 trillion equity markets. I am pleased to support these rules because they would enhance competition, efficiency, and fairness, benefitting investors and capital formation alike. In 1975, Congress tasked the Securities and Exchange Commission with responsibility to facilitate the establishment of the national market system and enhance competition in the securities markets, including the equity markets. Based on these new authorities, starting in 1978 and through 2005, the Commission has taken a number of actions promoting efficiency and competition in the equity markets.
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Unregistered Municipal Advisory Activity in Public-Private Partnerships
Dave Sanchez, Director, Office of Municipal Securities; The Bond Buyer Infrastructure Conference - SEC
Good afternoon everyone. I want to thank The Bond Buyer for organizing this Infrastructure Conference and for inviting me today to talk about some important regulatory safeguards that were put in place a decade ago to help state and local governments make effective infrastructure investments.
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Reducing Trading Costs for all Investors
Commissioner Jaime Lizarraga - SEC
The Commission is reforming how exchanges quote individual stock prices, the fees investors pay to access orders on exchanges, and the price transparency of smaller orders. In a change from the status quo, the amendments will also provide real-time disclosure of exchanges' access fees and rebates. The rules governing current market practices have not been updated in almost two decades, but the Commission's reforms will result in lower transactions costs that benefit all investors.
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Statement on Adoption of Rule Regarding Regulation NMS: Minimum Pricing Increments, Access Fees, and Transparency of Better Priced Orders
Commissioner Mark T. Uyeda - SEC
Thank you, Chair Gensler. Today, the Commission is adopting a change in the required minimum pricing increments-also known as the "tick size"-for expressions of trading interests in national market system (NMS) stocks.[1] In addition, the Commission is reducing access fee caps and requiring more transparency of certain better priced orders. As the Commission observed when it originally adopted Regulation NMS, a minimum tick size can encourage the provision of liquidity by constraining the ability of market participants to gain an execution priority over pre-existing orders by providing an economically insignificant improvement in the bid or ask. However, if a tick size is too large, it can discourage price competition on national securities exchanges and cause market participants to seek out other venues that might lower transaction costs. Given that optimal tick size can depend on the characteristics of the market and the security being traded and may be affected by changes in technology and communications, the question of the required minimum pricing increment is one that should be revisited on a regular basis. It has been nearly 20 years since the Commission last did so. I am pleased that the Commission has now undertaken this effort.
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Statement on Amendments to Tick Sizes, Access Fees, and Transparency of Better Priced Orders
Commissioner Caroline A. Crenshaw - SEC
I think it is fair to say that equity market structure contains multitudes,[1] and in that poetic spirit today the Commission will vote on amendments that can be broken into several components: (1) reducing the tick size for certain stocks, (2) reducing the maximum fees that exchanges may charge investors for execution against protected quotations (or "access fee caps" for short); and (3) requiring exchange fees and rebates to be determinable at the time of the execution.[2] In addition, today's amendments will accelerate the implementation of the "round lot" and "odd-lot information" definitions from the Market Data Infrastructure Rule[3] and add a new "best odd-lot order" data element (or "BOLO") as part of the odd-lot information definition.
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My Take on Tick: Statement on Adoption of Regulation NMS: Minimum Pricing Increments, Access Fees, and Transparency of Better Priced Orders
Commissioner Hester M. Peirce - SEC
The final rule before the Commission today is a significant improvement over the proposal. It replaces an overly granular set of minimum pricing increments with a more reasonable single additional increment at a half-penny; it replaces a one-month review period for determining each security's appropriate tick size with a more generous three-month review period and makes adjustments to the minimum tick size for each stock only twice a year, rather than once each quarter. It abandons an ill-advised proposal to mandate minimum trading increments across exchange and off-exchange transactions. It provides a longer implementation period and commits the Commission to conducting a study of the rule's effects and outlines how the Commission will determine whether the rule has achieved the Commission's objectives.
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Audit Firm Prager Metis Settles SEC Charges for Negligence in FTX Audits
SEC
The Securities and Exchange Commission today announced that Prager Metis CPAs, LLC (Prager) agreed to pay $745,000 to resolve an action alleging misconduct in its audits of the now-defunct crypto asset trading platform FTX Trading Ltd. (FTX).
/jlne.ws/4exoNVX
ASIC seeks an investment scam and phishing website takedown service for up to five years
ASIC
The Australian Securities and Investments Commission (ASIC) is Australia's integrated corporate, markets, financial services and consumer credit regulator. It is charged with promoting market integrity and consumer protection across the Australian financial services sector. Combating and disrupting investment scams is a key priority for ASIC and since July 2023, it has coordinated the removal of over 7,300 phishing and investment scam websites (24-180MR).
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ASIC obtains urgent court orders against director and companies providing investment opportunities in NDIS-compatible property developments
ASIC
ASIC has begun urgent civil proceedings against company director David McWilliams and several of his companies that offered investment opportunities for purpose-built, NDIS-compatible property development schemes across Australia. On 11 September 2024, the Federal Court made orders preserving the assets of ALAMMC Developments Pty Ltd, SDAMF Pty Ltd, Harvey Madison Capital Pty Ltd and Coral Coast Mutual Pty Ltd, and other related entities.
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ASIC receives new powers under financial market infrastructure reforms
ASIC
ASIC welcomes the new Australian financial market infrastructure (FMI) laws, which introduce new powers essential to ensuring a stable and efficient Australian financial system. Financial market infrastructures (FMIs) are the key entities that enable, facilitate, and support trading in Australia's capital markets. FMIs include financial market operators, benchmark administrators, clearing and settlement (CS) facilities, and derivative trade repositories.
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Speech by Liam Mason at Responsible Investment Association of Australasia (RIAA)
FMA
Many thanks for having me along to speak to you today, and a big thank you to Estelle Parker, Dean Hegarty, and the other RIAA staff for hosting this event. It's a pleasure to be here, and to speak on this issue of great importance to the FMA - why? Because it is essential that investors clearly know what they're buying. When it comes to ethical or sustainable investment, preventing greenwashing is crucial. Greenwashing - misrepresenting a product's ethical or environmental impact - damages trust in the market and can mislead investors into making decision based on false claims.
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Reforms to financial services retail-disclosure requirements
FCA
The Government and FCA announce plans to reform UK retail disclosure rules and will temporarily exempt investment trusts from assimilated EU law requirements. The Government and FCA are committed to the ongoing reform programme to reinvigorate our capital markets. Ensuring retail investors can make informed investment decisions is an important part of ensuring healthy capital markets. As part of this, the Government and FCA are committed to replacing EU-inherited consumer cost disclosure regulation with a new framework tailored to UK markets and firms.
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Statement on forbearance in relation to investment trust disclosure requirements
FCA
This statement sets out our forbearance given the Government's intention to exclude some investment trusts from the PRIIPs Regulation and other assimilated law. The Government is committed to replacing EU-inherited disclosure regulation with a new framework tailored to UK markets and firms. In November 2023, the Treasury issued draft legislation on the repeal and replacement of the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation with a new framework for Consumer Composite Investments (CCIs). Treasury will lay legislation in H2 2024 to provide us with the additional powers to deliver this reform.
/jlne.ws/47w0p4u
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Gold M&A Is Heating Up But Miners Are Pledging Discipline; There has been a flurry of M&A in gold sector in recent months; Miners signal wariness of repeating mistakes of overspending
Jacob Lorinc - Bloomberg
With gold prices at a record high, mining companies are back hunting for deals while trying to reassure investors that they've learned from past mistakes of overspending. There has been a flurry of activity in recent months, with Gold Fields Ltd.'s $1.6 billion purchase of Osisko Mining Inc. and AngloGold Ashanti Ltd.'s $2.5 billion acquisition of Centamin Plc. That has sparked speculation over what could be next, with signs that more companies are working to ink deals.
/jlne.ws/3zlr6MR
Wall Street's $5.1 Trillion Triple-Witching Is Next Market Test; Index, single-stock and ETF options to expire on Friday; Expiry follows Fed rate cut, coincides with index rebalance
Jess Menton - Bloomberg
Just as Wall Street traders come to grips with the Federal Reserve's interest-rate cut, Friday's US options expiration threatens to whipsaw the market some more. The quarterly "triple-witching" will see some $5.1 trillion worth of options tied to individual stocks, indexes and exchange-traded funds fall off the board, according to an estimate from derivatives analytical firm Asym 500. While the risk is sometimes overblown by Wall Street players, the options event has a reputation for causing sudden price moves as contracts disappear and traders roll over their existing positions or start new ones.
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Tyson Foods Sued for Greenwashing; Environmentalists say the meat company's 'net-zero by 2050' claims don't hold water
H. Claire Brown - The Wall Street Journal
Tyson Foods, the meat company that produces about 20% of the meat sold in the U.S., was sued for greenwashing on Wednesday. Since 2021, the company has claimed it will reach net-zero emissions by 2050, and about two years ago, it began touting plans for its "climate-smart" beef. The lawsuit, brought by the advocacy organization Environmental Working Group, alleges that these statements are misleading because Tyson Foods has no real plans to achieve these goals. "Greenwashing claims are really targeting well-meaning consumers who want to do good with their money, who want to try to take some individual responsibility and purchase foods that are more climate-friendly," said Carrie Apfel, an attorney for Earthjustice, an environmental law firm representing the plaintiff.
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Combining Solar Power With Farming Is Getting Easier. Developers Are Wary of Added Costs; Agrivoltaics may help farms use less water and protect fruit from frost, but many U.S. farmers can still make more money renting their land to developers
H. Claire Brown - The Wall Street Journal
As solar farms fan out across the landscape, some worry they will displace actual farmland. The solution: Why not grow food and produce solar energy on the same plot? Boosted by solar industry support and government funding, researchers are exploring new ways to combine agriculture and solar power. In Ohio, operations have begun on a large-scale U.S. farm producing both crops and solar energy, one of the first of its kind.
/jlne.ws/3TCY6am
AT&T Will Remove Lead Cables From Lake Tahoe; Environmental group's suit says it found high lead levels in water and sediment near the cables as well as in algae
Susan Pulliam - The Wall Street Journal
AT&T agreed to remove 8 miles of lead-covered cables from Lake Tahoe, following a protracted legal battle with an environmental group over their removal, according to court documents. The plaintiff in the case, the California Sportfishing Protection Alliance, said it found high levels of lead in water and sediment near the cables and in algae, which form the base of the food chain for fish, clams and crayfish in the lake.
/jlne.ws/3XwBFof
Historic Rainfall Inflicts Chaotic Floods Across Four Continents; A series of storms, fueled by a warming planet, has unleashed torrential rainfall and flooding in Europe, Africa, Asia and the US.
Lauren Rosenthal and Brian K Sullivan - Bloomberg
Severe rains bucketed down on central Europe, Africa, Shanghai and the US Carolinas this week, underscoring the extreme ways in which climate change is altering the weather. Different meteorological phenomena are behind the series of storms, according to climate scientists, though they agree an underlying factor for the supercharged rainfall is global warming writ large. Research has shown that hotter air is capable of carrying more moisture and is more likely to cause intense precipitation.
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World to Pay to Turn Off Green Power Unless Grids Improve
William Mathis - Bloomberg
The world will pay to switch off a huge amount of green power by the end of the decade - thwarting efforts to get off fossil fuels quickly - unless countries improve their electric grids to better integrate wind and solar generation. Grid issues could cause the world to miss out on as much as 2,000 terawatt-hours of wind and solar generation, according to a report from the International Energy Agency which examined how countries cope with increasing renewable generation in their energy mix. That's roughly the amount produced last year in China and the US, the world's two biggest generators.
/jlne.ws/4gwLxHh
IEA Anticipates End of Russian Gas Flows Via Ukraine; Transit deal with Gazprom set to expire at end of the year; Moldova security particularly at risk from deal's end: IEA
John Ainger - Bloomberg
The International Energy Agency is anticipating an end to Russian gas flows through Ukraine after a transit deal expires at the end of the year, warning of a tough winter ahead for Kyiv and its neighbors. "It is not excluded that some sort of continued arrangement for transit flows might yet be found," the IEA said in a report Thursday. "But the base case assumption is that Russian transit flows via Ukraine will be discontinued from January 2025."
/jlne.ws/3ZyUfPd
Rising Floodwaters Leave Europe Bracing for More Destruction
Andrea Dudik, Natalia Ojewska, Marton Eder and Krystof Chamonikolas - Bloomberg
Deadly floods unleashed destruction across central Europe, with water levels on the River Danube rising further. The torrential rain from Storm Boris is set to subside on Tuesday but water levels remain elevated across the region. In Austria, the focus is turning to the threat posed by melting snow and landslides, after the slow-moving cold weather system brought heavy falls to the Alps.
/jlne.ws/3Bbqr17
The DEI Crusader Who Closed Her Firm to Save Diversity in Tech; Tech Talent Charter shut when firms reduced diversity efforts; Government-backed group said budgets for DEI were sinking
Siraj Datoo - Bloomberg
/jlne.ws/4gtuqGm
Europe's great battery hope Northvolt fights for survival; Swedish start-up struggles to secure funds as it tries to increase production at its gigafactory
Richard Milne - Financial Times
/jlne.ws/3B4r8Jm
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Citadel Securities doesn't want to be a member of the world's most important club; Primary dealership headaches
Robin Wigglesworth - Financial Times
For generations, becoming a US primary dealer was the bond market equivalent of getting the Master Mason rank in the Freemasons - a sign that you've arrived at the apex of fixed income. But Citadel Securities has after years of flirting with the opportunity decided to say "um, nah, no thanks". From Bloomberg overnight: Citadel Securities has quietly shelved plans to join one of Wall Street's most prominent clubs: The ranks of bond dealers that trade directly with the Federal Reserve.
/jlne.ws/3Tzg4u8
Danske Bank to Pay $7 Million in French Settlement Over Estonia Money-Laundering
Richard Vanderford - The Wall Street Journal
Danske Bank has agreed to pay the equivalent of $7 million in a settlement with French authorities over its failure to stop money-laundering at its former branch in Estonia. The settlement: Danske Bank, the largest in Denmark, said Wednesday it had cooperated with French authorities and agreed to pay 6.33 million euros in a settlement with France's national financial prosecutor, ending that country's investigation into the bank.
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Deutsche Bank Taps UBS's Gasser to Run German Wealth Unit
Arno Schuetze - Bloomberg
Deutsche Bank AG hired Raffael Gasser as head of wealth management and private banking Germany, tapping another former colleague of Private Bank head Claudio de Sanctis for a key role. Gasser, who will start in November and report to de Sanctis, joins from UBS Group AG, where he led the business with wealthy clients in Northern Europe, according to a statement Thursday. Before that, he worked 14 years at Credit Suisse's wealth management business.
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Oxford endowment fund boss Sandra Robertson to give up investment role; Neamul Mohsin will take over chief investment officer position at university's £6.5bn fund
Harriet Agnew - Financial Times
Sandra Robertson, who has run Oxford university's £6.5bn endowment fund since it was founded almost two decades ago, is stepping back as chief investment officer, according to three people familiar with the situation. Robertson, who is currently CIO and chief executive of Oxford University Endowment Management, will give up the investment role as of January next year and remain CEO. Deputy-CIO Neamul Mohsin, who joined the institution 12 years ago, will become chief investment officer.
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Oaktree to pick up Close Brothers Asset Management in £200 million deal; Following completion of the transaction - expected in 2025 - Close Brothers AM will operate as a standalone and independent business.
Claudia Preece - The Trade
Oaktree Capital Management has agreed to acquire Close Brothers Asset Management (CBAM) - the wealth management arm of Close Brothers - for an equity value of up to £200 million, set to be completed in early 2025 pending customary regulatory approvals. Specifically, the deal value includes £172 million cash to be paid at or before completion of the transaction, comprising an upfront cash consideration of approximately £146 million payable on completion, and a dividend of around £26 million - payable by CBAM to Close Brothers on or before completion.
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | Xi Unleashes a Crisis for Millions of China's Best-Paid Workers; China created a professional class in record time. Now, just as swiftly, many of their dreams are being crushed.
Bloomberg News
It's 1 a.m. and Thomas Wu is riding his bike on the empty streets of Shanghai. The 43-year-old insurance executive has had another meltdown. Wu's pay has been slashed by 20% in a nationwide push to lower salaries at state-owned finance companies. He frets about layoffs and wonders how he'll find 600,000 yuan ($84,500) to keep his two children in international school - a hallmark of upper-middle-class life in China. His six-year-old is behind in math.
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| Wellness Exchange | | An Exchange of Health and Wellness Information | The Worrisome 'Wild West' of Testosterone Hacking; TRT offers convincing benefits for men who need it. The problem is that many men really don't.
Chris Bryant - Bloomberg
Nowadays, men in their 40s like me are constantly being urged to get their testosterone levels checked, as private clinics and online providers tout "testosterone replacement therapy" as the way to improve sexual, physical and mental well-being. It's a concerning development in TRT's two-decade journey from being a niche therapy to a lifestyle panacea. While I'm all for restoring natural testosterone levels for those with a genuine deficiency, the boundaries of therapeutic use and physical enhancement are becoming fuzzy. There's a danger that opting for TRT as a cure-all means health issues such as obesity aren't appropriately addressed, while young men risk impaired fertility and a lifetime of unnecessary and costly injections.
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Schizophrenia: the new drug set to tackle the 'cancer of psychiatry'; But the healthcare system in the US still struggles to provide adequate care for those with serious mental illness
Oliver Barnes - Financial Times
When a rash broke out on the hand of a patient taking part in the trial of a promising schizophrenia drug, clinical investigator Greg Mattingly began to fret that it might be an allergic reaction. Instead, it turned out to be a mark of success: the patient, in his fifties, had landed his first job in more than a decade as a waiter, and the skin inflammation was a side effect not of the drug, but of washing dishes.
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One of the World's Biggest Health Risks Is a Philanthropic Blind Spot
Christa Hasenkopf - The New York Times
On June 7 last year, the skies across New York City and large swaths of the state turned hazy from wildfire smoke blowing in from Canada. Gov. Kathy Hochul warned of an "emergency situation" and cautioned residents to stay indoors. In the city, schools canceled activities, libraries closed early, and a Yankees game was postponed. It was the most polluted day in the city since record-keeping began in 1999. The air quality index, a composite of five pollutants, skyrocketed to over 400; above 300 is considered hazardous. Most alarming, the level of fine particulate matter, which is an especially dangerous component of the index because the tiny particles of smoke, soot and other pollutants penetrate deep into the lungs, was the highest recorded in any city in the world on that day and three times as much as the federal health standard.
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New XEC Covid variant spreading in the US, doctors warn; Reports of people catching the new variant have also emerged in the UK, and other European nations such as Denmark and Germany
Andrew Buncombe - The Telegraph
Scientists have warned that a new variant of Covid - known as XEC - is spreading across Europe and the United States. Reports of people catching the new variant have emerged in the UK, and other European nations such as Denmark and Germany. Now doctors in the US are also reporting a small number of cases and predicting it appears set to spread. It is set to be the "next challenge" for doctors, nurses and healthcare systems, experts said.
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | India to produce more rice this year despite heavy rains, minister says
Mayank Bhardwaj - Reuters
India's rice production this year will be higher than last year despite heavy rains and flooding in some states, Agricultural Minister Shivraj Singh Chouhan said on Thursday. The country is also considering easing curbs on non-basmati rice exports as inventories in the world's biggest exporter of the grain surge and farmers are set to harvest a new crop in the coming weeks.
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US Gives $80 Million Boost to African Farmers Battling El Nino; Zambia, Malawi and Tanzania are focus of new program; Companies including Bayer also announced large investments
Matthew Hill - Bloomberg
The US has committed more than $80 million in funding under a new program to help grow agricultural output in three southern African nations it sees as having the potential to supply food to the broader region. The US Agency for International Development's and the and State Department's investment in Zambia, Malawi and Tanzania brings its total commitments to the region under its Feed the Future program to $577 million, it said in statement Thursday. The agency chose those countries for their abundant arable land with small-holder growers with potential to boost yields with some help, according to Samantha Power, who heads the agency.
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