| February 18, 2022 | "Irreverent, but never irrelevant" | | | | John Lothian
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Hits & Takes
John Lothian & JLN Staff
TMX today announced it has made a strategic investment in ETFLogic, a U.S.-based fintech company and provider of analytics and portfolio tools to the wealth management industry and investment fund manufacturers. TMX said this "investment follows the launch of TMX LOGICLY, a collaboration between TMX Datalinx®, TMX's information services division, and ETFLogic, in January 2021."
Cboe Global Markets Inc., which I always want to call "the Cboe," or "C-B-O-E," filed its annual report with the SEC today. You can find it HERE.
Risk named Intercontinental Exchange as its Exchange of the Year for 2022.
Eurex is celebrating three years of ESG derivatives trading. Eurex has 28 ESG derivatives, including five ESG futures and six options. Eurex is home to six of the top ten ESG derivatives globally by volume and open interest. Notionally, they have traded EUR79.3 billion since the launch, with a 209% increase year on year from 2021 to 2022. The notional open interest is EUR5 billion, and increased 202% from 2021 to 2022. The ESG sector is Eurex's shining success.
The ever helpful Wall Street Journal has a timely story titled "The WSJ Tax Guide 2022: What to Know Now About Tax Filing and Refunds." I just want to know, what is a refund? I am still awaiting mine, if such a thing still exists.
I have a question for you lawyers out there. If a force majeure is an unforeseen extraordinary situation, such as war, if the press is talking about the threat of war in the Ukraine every day could this war still be considered "unforeseen"? I guess there could be someone out there without a smartphone or cable TV, but maybe not anyone with contracts that would be impacted by a war in the Ukraine.
What if it were an unreliable source on cable TV? Pick your poison on that one. If some wingnut channel is talking non-stop about an event, and it happens, is it unforeseen?
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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Optimizing Markets for Today and Tomorrow; A Framework for U.S. Equities Market Reform
Nasdaq
The U.S. Equities markets are amongst the most efficient and well-functioning in the world. The pandemic reinforced the notion that our markets can manage extreme volatility and elevated volumes, evidenced through market performance over the past several years. As we look ahead, we believe there is an opportunity to further enhance and modernize the rules that govern our markets to ensure they remain the most trusted, liquid and efficient in the world.
/jlne.ws/3JGzGFz
***** Nasdaq is very timely in its whitepaper.~JJL
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Calling Out 'Emperor' Larry Fink; Charlie Munger says what many CEOs think but decline to say.
The Editorial Board - WSJ
When you're 98 years old you can say things others can't, so bravo to Charlie Munger for daring to speak an important but too muffled truth about today's financial markets. "We have a new bunch of emperors, and they're the people who vote the shares in the index funds," Warren Buffett's Berkshire Hathaway partner said Wednesday. "I think the world of Larry Fink, but I'm not sure I want him to be my emperor." Many CEOs no doubt privately agree.
/jlne.ws/3oXDTwo
****** Like I said, when you are as old as Charlie Munger, you don't care what other people think anymore and you let it fly.~JJL
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DOJ Is Amping Up Its Crypto Scrutiny, Naming Head of New Enforcement Team
Chris Strohm - Bloomberg
Monaco says the crypto ecosystem must be trusted, policed; Choi says she'll head 'one-stop shop' of department's experts
The Justice Department named a veteran cybersecurity prosecutor to lead a new team dedicated to investigating and prosecuting illicit cryptocurrency schemes carried out by cyber criminals and nation states including North Korea and Iran. Eun Young Choi will be the first director of the National Cryptocurrency Enforcement Team, which will serve as the focal point for efforts to identify and dismantle the misuse of cryptocurrencies and other digital assets, Deputy Attorney General Lisa Monaco announced Thursday.
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***** Too bad Sean Connery is dead. He would have been perfect for the lead in the movie version of this when it comes out.~JJL
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It's Time for Bitcoin to Become a Better Tool for Laundering Money
Joe Weisenthal - Bloomberg
A popular criticism of Bitcoin is that it's only good for laundering money. But in fact the problem is just the opposite. It's not good enough. As our Bloomberg Opinion colleague Matt Levine recently wrote in response to the arrest related to the Bitfinex theft, it turns out it's extremely hard to launder money with Bitcoin because the blockchain is visible for the world to see. Of course, the chain itself doesn't have user names associated with any specific address or wallet. However, it's very easy to watch some amount of Bitcoin and see if it's on the move. And it's not hard for regulated exchanges to reject Bitcoin that is deemed to be compromised in some way.
/jlne.ws/3HUKsr4
***** It is not bitcoin that is the money laundering tool, but the adjuncts to it and the other coins that are not as easy to trace. Don't judge a tool by people who don't know how to use it correctly.~JJL
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IRS Adds New 'Surge Team' as Lawmakers Fume Over Tardy Refunds
Laura Davison and Naomi Jagoda - Bloomberg
Some taxpayers wait years; millions of returns unprocessed; Agency reverses plans to close processing facility in Texas
The Internal Revenue Service is expanding its capacity to process tax returns following criticisms from members of Congress about taxpayers waiting months to get their refunds.
/jlne.ws/3LH5VGl
***** If the IRS could get 35,000 U.S. Marines for a surge, that would be way cool and probably solve its problems. But the surge team we will probably get will likely be more of a short circuit.~JJL
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Thursday's Top Three
Our most read story Thursday was CME Group Announces Senior Leadership Changes. Second was the record of misconduct and fines by FINRA Monthly Disciplinary Actions - February 2022. Third was In warning to U.S., COVID rates soar after Denmark lifts all restrictions from Yahoo News.
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| All MarketsWiki Sponsors» | | | | | | | John Lothian News (JLN) is the news division of John J. Lothian & Company, Inc. (JJLCO). The online media and financial services firm is staffed by derivatives industry, journalism and technology professionals. | | | | | | | John Lothian News Editorial Staff: | | | John Lothian
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| Lead Stories | SEC chief Gary Gensler wants to bring the public's 'trust' back to the stock market — and even to crypto
Chris Matthews - MarketWatch
Satoshi Nakamoto, the mysterious creator of bitcoin, dreamed of a world where financial transactions and investing could occur without the need to trust a third party. According to Securities and Exchange Commission Chairman Gary Gensler, Nakamoto fundamentally misunderstood how markets work. "Finance is ultimately about trust," Gensler told MarketWatch in an exclusive interview. "And the official sector has a role to help instill that trust through a set of rules on disclosure, anti-fraud and anti-manipulation."
/jlne.ws/3JrKcjM
FBI Warns Crypto Criminals: We're Watching You; A special unit dedicated to digital currencies has just been created at the Department of Justice, working against fraud related to the cryptosphere.
Luc Olinga - The Street
Cryptocurrencies are victims of their own success. After reaching unparalleled popularity in 2021 and peaks in price, digital currencies now seem to be at the center of the concerns of regulators. This attention has just taken a big step forward. The Department of Justice formed a special unit to tackle fraud in the cryptosphere. The National Cryptocurrency Enforcement Team will be led by Eun Young Choi, according to a news release from the DoJ. Choi is a veteran prosecutor who most recently served as senior counsel to the deputy attorney general, the agency said. Her appointment is effective immediately.
/jlne.ws/350XJjk
Meat traders wield centuries-old law to frustrate new Museum of London; Market workers refuse to be relocated 14 miles from city centre to make way for £337mn historical venue
James Pickford - FT
Two thousand years of history will be explored as never before at a newly unveiled Museum of London. But it is the capital's history that is proving a stumbling block to the £337mn project's timetable, as meat traders at Smithfield market wield a centuries-old law to block access to half the site. The City of London Corporation, the ancient local authority of the Square Mile, is landlord of the disputed venue where the London Museum — its new name — will eventually have more than double the display space available at its current home in a traffic-blighted corner of the Barbican complex.
/jlne.ws/3sQ2MLH
Regulators have cryptocurrencies in their sights; As digital assets go mainstream, investors should take heed of the dangers they bring
Gillian Tett - FT
When cryptocurrency prices surged last year, this created hordes of newly-minted digital millionaires. Now we are seeing some real-world consequences. This week Fidelity, the asset manager, revealed that its clients donated $10bn to its charitable arm in 2021: including $331mn of crypto asset donations, mostly bitcoin. This was a 12-fold increase on 2020. Some of this giving might have reflected mere generosity (or guilt). But pre-emptive "tax optimisation" strategies probably sparked it too, since investors are waiting for "clarity from the Internal Revenue Service* on what crypto taxation looks like in the future," Jacob Pruitt, head of Fidelity Charitable, tells me.
/jlne.ws/3oZ2npc
Exchange of the year: Intercontinental Exchange; Risk Awards 2022: Amid Brexit and benchmark transition, Ice fulfils Abu Dhabi exchange ambition
Risk.net staff
Preparing for Libor's end has been an uphill struggle for market participants of all stripes. For exchanges with flagship contracts pegged to the outgoing benchmarks, adaptation has been a matter of survival. For Intercontinental Exchange (Ice), which owns the rate via its Ice Benchmark Administration (IBA) arm and is also home to sterling Libor-linked futures and options, a smooth transition was imperative.
/jlne.ws/3gTWVj1
CME Group financial chief to step down amid swathes of senior management changes; The exchange operator said the changes to its executive, equities, post-trade and rates management were designed to support its "long-term success".
Annabel Smith - The Trade
Chief financial officer of CME Group, John Pietrowicz, has announced plans to retire at the end of next year amid swathes of changes to the exchange operator's senior management team. Pietrowicz departs from CME Group after spending two decades with the exchange operator. Current deputy financial chief, Lynne Fitzpatrick, has been appointed to replace him.
/jlne.ws/3uWCvy0
Abaxx announces Special Distribution and Record Date of Base Carbon share spin out
GlobeNewswire
Abaxx Technologies Inc., (NEO: ABXX) (OTCQX: ABXXF) ("Abaxx" or the "Company"), a financial software company, majority shareholder of Abaxx Singapore Pte. Ltd., the Abaxx Commodity Exchange (AEX), and producer of the SmarterMarkets™ Podcast, is pleased to announce a distribution of 5,091,864 common shares (the "Base Carbon Shares") of Base Carbon Corp. ("Base Carbon") from its holdings to shareholders of Abaxx as a return of capital (the "Return of Capital"). The Return of Capital is being completed in connection with a capital reorganization and the anticipated completion of Base Carbon's reverse takeover transaction and listing on the Neo Exchange Inc. The Return of Capital was approved by shareholders of Abaxx at its annual general and special meeting held on August 25, 2021 (the "Meeting").
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A $2.2 Trillion Crunch Time Looms for Traders Loaded With Stock Hedges
Friday's OpEx lands in market where investor caution growing; Investors are holding positions until 'the bitter end': Sears
Lu Wang - Bloomberg
Stock investors, on guard for turmoil with everything from geopolitics to Federal Reserve hawkishness strafing their nerves, are bracing for a chaotic end to the week with $2.2 trillion of option expirations set to hit the market Friday. The monthly event involves $545 billion of derivatives across single stocks scheduled to expire, Goldman Sachs Group Inc. estimates. About $985 billion of S&P 500-linked contracts and $165 billion in options tied to the world's largest exchange-traded fund, the SPDR S&P 500 ETF Trust (ticker SPY), will run out, according to the firm's strategist Rocky Fishman.
/jlne.ws/3I8nL2Y
Crypto Investors Are Wealthier. No One Knows How Much They're Spending; It's time to start contemplating how vast wealth created in cryptocurrencies filters through the rest of the economy
Telis Demos - WSJ
Cryptocurrency companies just spent millions of dollars on Super Bowl ads. What's harder to say is how much crypto investors spent on game day. Vast wealth has been created in cryptocurrencies, which globally now have a value of nearly $2 trillion, according to CoinMarketCap. While that pales in comparison to many other asset classes, it has risen quickly. The global value of crypto grew by nearly $1.5 trillion last year, compared with the S&P 500's rise of nearly $9 trillion in market value, according to FactSet.
/jlne.ws/3uYUzYg
TMX Group Limited Makes Strategic Investment in ETFLogic; TMX LOGICLY, a research and analytics platform for financial industry professionals, was launched in 2021
TMX
TMX Group Limited (TMX) today announced that it has closed an equity investment, acquiring a minority interest in SigmaLogic, Inc. (DBA ETFLogic), a U.S.-based fintech company and leading provider of analytics and portfolio tools to the wealth management industry and investment fund manufacturers. This investment follows the launch of TMX LOGICLY, a collaboration between TMX Datalinx®, TMX's information services division, and ETFLogic, in January 2021.
/jlne.ws/3LD4t7X
Derivatives client clearer of the year: BNP Paribas; Risk Awards 2022: Europe's clearing powerhouse hoovers up mandates at home and forges a US beachhead
Kieron Smith - Risk.net
Clearing Better late than never. After a decade of dominance in derivatives clearing by US banks, an EU bank is emerging as a serious competitor to its rivals across the pond. The big five US banks have maintained an iron grip on the market for the past decade, while Europe's wounded banks struggled to recover from the self-inflicted harm of the eurozone crisis. But despite jumping into the arena later than its US competitors, BNP Paribas is catching up fast.
/jlne.ws/3H7p29a
Deutsche Bank Ties to Mysterious Dealmaker Are Caught on Camera
William Patrick Geor Louch and Steven Arons - Bloomberg
Daniel Wruck has made himself a player in Frankfurt circles; But ties to him are starting to become an embarrassment
A few years ago Deutsche Bank Chief Executive Officer Christian Sewing traveled to New York where he met with Stanley Chera, a real-estate mogul and close friend of then U.S. President Donald Trump. The two posed for a photo alongside another, less well-known German businessman: Daniel Wruck, owner of a dry-ice cleaning company on an industrial estate outside Frankfurt -- and associate of some of corporate Germany's grandest names.
/jlne.ws/3gXX30J
Even Hedge Funds Should Stay Within Their Rails; Allianz is the latest firm to find that bad things can happen when fund managers stray from their mandates.
Mark Gilbert - Bloomberg
Allianz SE is taking an eye-watering charge of 3.7 billion euros ($4.2 billion) to cover the cost of the implosion of its Florida-based hedge funds two years ago. It's a reminder that even the most risk-seeking market traders need to stay within the rails they've agreed upon with their clients.
/jlne.ws/3sT0zPA
Morgan Stanley Relationships Across Wall Street Snared in Probe
Sridhar Natarajan, Gillian Tan, and Hema Parmar - Bloomberg
DOJ seeks info on executives at Citadel, Element and others; Names show probe's scope but don't indicate they're targets
Ever since his arrival after university in 2004, Pawan Passi has worked the phones inside Morgan Stanley, rising to become a chief communicator with investors buying and selling big blocks of stock, a business the bank dominates on Wall Street. Then in November, his chair suddenly went empty at Morgan Stanley's headquarters overlooking Times Square, and the whispers began spreading. The bank had put Passi on leave. The feds were poking around.
/jlne.ws/3ByLZAY
Morgan Stanley's role in Archegos collapse sped up block trade probes
Bloomberg News and Reuters
Morgan Stanley's role in the collapse of Archegos Capital Management deepened a probe by U.S. authorities into Wall Street's lucrative market for block trades, Bloomberg News reported, citing people with knowledge of the matter. The investment bank lost nearly $1 billion last year when Bill Hwang's Archegos failed to meet margin calls, forcing several investment banks including Morgan Stanley to attempt recouping losses by liquidating shares and assets.
/jlne.ws/3sN3qth
Musk Says SEC Is Out to 'Muzzle and Harass' Him and Tesla
Bob Van Voris - Bloomberg
Elon Musk and Tesla Inc. told a judge that the U.S. Securities and Exchange Commission is targeting them with "unrelenting investigation" for criticizing the government, while failing to pay Tesla shareholders $40 million the agency collected in 2018 settlements over Musk's tweets.
/jlne.ws/3gSrSDY
Elon Musk and Tesla accuse SEC of 'harassment campaign'; Electric carmaker and its CEO tell a federal judge that the regulator's conduct is 'beyond the pale'
Dave Lee - FT
Tesla has accused the Securities and Exchange Commission of going "beyond the pale" and harassing its chief executive Elon Musk over his compliance with a 2018 agreement on his use of social media, the latest salvo in a lengthy dispute between Musk and the US stock market regulator. Earlier this month the electric carmaker revealed it had been subpoenaed by the SEC in relation to its compliance with the settlement, part of which required a company lawyer to preapprove Musk's tweets that contained "material" information.
/jlne.ws/3sWYW3E
Allianz takes EUR3.7bn hit over US funds fallout; Europe's largest insurer books provision to end disputes with investors over Structured Alpha Funds activity early in pandemic
Ian Smith - FT
Allianz has taken a EUR3.7bn hit to its pre-tax profits as it braces itself for the financial fallout from the actions of its US funds division during the market tumult early in the pandemic. In a statement issued alongside its full-year results after market close on Thursday, Europe's largest insurer by market value said it was booking the provision in expectation that it will soon settle with big investors in the so-called Structured Alpha Funds, and "in light of current discussions with US governmental authorities".
/jlne.ws/3BvHcjo
Credit Suisse banker in cocaine-cash trial says murders dismissed by management
Stephanie Nebehay and John O'Donnell - Bloomberg
Credit Suisse learned of murders and cocaine smuggling allegedly connected to a Bulgarian gang but continued to manage cash that is now the focus of a criminal trial, a banker accused of money laundering told a Swiss court during the case.
/jlne.ws/34R8c11
It's a Very Crypto Scandal, But the Charges Are Serious; The value of the coins Heather Morgan and Ilya Lichtenstein are accused of laundering has climbed from $70 million to $4.5 billion.
Emily Nicolle - Bloomberg
Here is the worst possible way to become a social media star. In her 2019 rap video, Heather "Razzlekhan" Morgan dances on the steps of Federal Hall in New York's Financial District, wearing a shiny gold jacket and a wide-brim cap and proclaiming herself the "Crocodile of Wall Street." You probably missed it when it came out. This February, however, Morgan and her husband, Ilya Lichtenstein, co-founder of a Y Combinator-backed tech startup, have been charged by federal prosecutors with conspiring to launder 119,754 Bitcoins that were stolen in a 2016 crypto exchange hack. Pretty soon, Razzlekhan was all over Twitter.
/jlne.ws/3I3qgTR
??City bankers face rerun of crisis-era criticism over bonuses; Bailey's tin-eared comment on workers' wage restraint makes timing of bumper payouts tricky
Cat Rutter Pooley - FT
It took years for the City's bankers to shed their post-crisis bogeyman status. This year's bumper bonus season threatens to revive it. The UK's big four high street banks report full-year earnings over the next week. Analysts anticipate £34bn in pre-tax profits between them, according to Visible Alpha data. And almost as intense as the scrutiny of cost-to-income ratios, net interest margins and returns on invested capital will be the focus on bonus pots.
/jlne.ws/3sJafvS
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Hong Kong City-Wide Covid Testing To Be Mandatory
Denise Wee - Bloomberg
Hong Kong's Chief Executive Carrie Lam said the city is planning to make it mandatory for all residents in the city to get tested for Covid-19, deploying a tactic widely used to curtail outbreaks on China's mainland. "So one of the measures that we are planning and planning very seriously is a mandatory universal testing," she said at a press conference.
/jlne.ws/3LJjDIB
Illegal border crossings push Hong Kong Covid outbreak into China; At least four people with the virus crossed border and travelled on to other mainland cities
Primrose Riordan and Chan Ho-him and Tom Mitchell - FT
Chinese authorities are combating an unexpected threat to their rigorous "zero-Covid" policy: illegal border crossings by people fleeing an outbreak in Hong Kong. Some Chinese cities have offered rewards for information about people smuggling after 15 individuals illegally entered Zhuhai, in southern Guangdong province, by boat from Hong Kong.
/jlne.ws/3rY37wy
As Omicron Surged, Covid-19 Spread Through Patients in Hospitals; A record number of people in hospitals in January had coronavirus infections they caught while there, Wall Street Journal analysis finds
Melanie Evans - WSJ
As the Omicron variant surged through communities across the U.S., it also spread inside hospitals and infected non-Covid-19 patients, reaching a record number, a Wall Street Journal analysis of U.S. government data found. The daily total of patients with Covid-19 that they caught in hospitals reached a record of about 4,700 during the Omicron wave in January, according to the analysis of U.S. Department of Health and Human Services data.
/jlne.ws/36c0y1t
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Government Re-appointments to the Board
HKEX
Hong Kong Exchanges and Clearing Limited ("HKEX") welcomes the Government's re-appointment of Mrs Laura May-Lung Cha ("Mrs Cha"), Mrs Chow Woo Mo Fong, Susan ("Mrs Chow") and Mr Hung Pi Cheng, Benjamin ("Mr Hung") as members of HKEX's Board of Directors ("Board"), each for a term of approximately two years from the conclusion of HKEX's forthcoming 2022 annual general meeting until the conclusion of the annual general meeting to be held in 2024.
/jlne.ws/3JIf1AZ
Dragan Radanovic (aged 44) has been appointed with immediate effect as Chairperson of the Management Board and Chief Executive Officer of EUWAX AG. From 1 March 2022 he will also be Spokesperson of the Management Board of Boerse Stuttgart GmbH, which operates Boerse Stuttgart Group's German trading venue. In addition, Radanovic joins the extended Management Board of Boerse Stuttgart Group as Chief Business Officer.
/jlne.ws/3LJBqPW
Aelis Farma lists on Euronext Paris
Euronext
Market capitalisation of EUR175 million - the largest IPO by market capitalisation of a biotech on Euronext Paris over the past 5 years; EUR25 million raised; Alumna of Euronext's pre-IPO programme TechShare; 5th listing on Euronext Paris in 2022
Euronext today congratulates Aelis Farma, a biopharmaceutical company specialising in the treatment of brain diseases, on its listing on Compartment B of Euronext's regulated market in Paris (ticker code: AELIS).
/jlne.ws/3JE0d68
BME and CUNEF sign a collaboration agreement to broaden Braindex's training offering; The 100% online financial training platform owned by BME will now feature courses by CUNEF Universidad; Braindex already offers 40 courses of different levels on Financial Markets and Products, Disclosure, Technology and Regulation applied to the sector
BME-X
Today BME and CUNEF Universidad announced at the Palacio de la Bolsa de Madrid a collaboration agreement through which Braindex, the 100% online financial training platform, will broaden its offering with courses from CUNEF Universidad. In this way, Braindex will add CUNEF Universidad MOOC courses to the platform and its users will be able to access the quality and prestige of the university's courses. The agreement signing ceremony was attended by Javier Hernani, CEO of BME; Ana Isabel Fernández, Chancellor of CUNEF Universidad, and Enrique Castellanos, General Manager of Instituto BME.
/jlne.ws/3rYwxdW
Implementation of 20-year JGB Futures Market Stimulation Program
JPX
OSE will launch a 20-year JGB Futures Market Stimulation Program from April 4, 2022, with the aim of increasing convenience for investors by improving market liquidity. Please refer to the following page for details.
/jlne.ws/36hLTlr
-- [https://jlne.ws/3gYs58I|[Approved Application for Spot Call Nonfat Dry Milk and Spot Call Dry Whey Regularity - CME]]
-- [https://jlne.ws/3gYs58I|[Approved Application for Spot Call Nonfat Dry Milk and Spot Call Dry Whey Regularity - CME]]
-- [https://jlne.ws/3gYAtFw|[Withdrawal of Regularity for Spot Call Nonfat Dry Milk and Spot Call Dry Whey - CME]]
-- EBS Market Integration Notice: New Content and Updates - CME
-- CME Globex Notices: February 14, 2022
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | LiquidityBook Bolsters Sell-Side Team with Three Senior Hires; These key additions come amid the rapid expansion of the leading OMS provider's sell-side customer base
LiquidityBook,
LiquidityBook, a leading provider of cloud-native buy- and sell-side trading solutions, today announced three new hires who will work to enhance and expand its comprehensive LBX Sell-Side solution. Brian Cabra will serve as Vice President of Implementations, Ryan Stankus will serve as Vice President of Product Management and Terrence Cheung will serve as Vice President of Post-Trade Product Management.
/jlne.ws/352CZYr
LiquidityBook expands sell-side solution with new hires from FlexTrade, ION Markets and Fidessa
Incoming senior hires join LiquidityBook during a period of rapid growth for the firm's sell-side client base.
Wesley Bray - The Trade
Cloud-native New York-based platform provider, LiquidityBook, has expanded its sell-side business with the addition of three new hires. The trio will bolster LiquidityBook's LBX solution that offers cloud-based order and execution management and compliance reporting tools to the sell-side.
/jlne.ws/3sRs5gh
Cassini Systems Named Best UMR Service of the Year in Risk Markets Technology Awards 2022; Recognized for Leadership and SIMM Solution in Helping Buy-Side Meet Uncleared Margin Rules
Cassini Systems
Cassini Systems, the leading provider of pre- and post-trade margin and collateral analytics for derivatives market participants and specialist in Uncleared Margin Rules (UMR) compliance, has just won the 2022 Risk Markets Technology Award for Best UMR Service of the Year. Cassini has played a significant role in helping a wide range of asset managers, insurance firms and top-tier hedge funds meet the complex requirements under UMR in Phases 4 and 5, and those firms that are captured, or potentially captured, by Phase 6, coming into effect on Sept. 1.
/jlne.ws/33wb3Mh
Adenza's AxiomSL to automate AIB's credit risk calculations and regulatory reporting
Adenza
Adenza, the new company formed by the merger of Calypso Technology and AxiomSL to provide customers with end-to-end, trading, treasury, risk management and regulatory compliance platforms, announces that it has been selected by Allied Irish Banks, p.l.c. (AIB) to support the bank's credit risk, securitization, leverage ratio and large exposure risk reporting throughout Europe and the UK.
/jlne.ws/3gUz96r
Talos Adds Access to OSL's Global Digital Asset Exchange
Talos
Talos, the industry's leading institutional digital asset technology provider, today announced the addition of the global OSL Exchange to its partner network. As a result, Talos users can now seamlessly access liquidity found on OSL's global exchange, which aggregates order books across Asia, the Americas, and OSL's white-label platforms, including its soon-to-launch European joint venture with Standard Chartered.
/jlne.ws/3I1AvrN
CloudMargin Named Collateral Management and Optimisation Product of the Year in 2022 Risk Markets Technology Awards
CloudMargin
CloudMargin, creator of the world's first and only collateral and margin management solution native to the cloud, today captured the award for Collateral Management and Optimisation Product of the Year at the 2022 Risk Markets Technology Awards. The firm previously won the category in 2019. CloudMargin CEO Stuart Connolly said: "We are truly honoured to win this award once again, having focused intensely on enhancing our platform to be a fully automated solution that offers broader optimisation capabilities to meet the needs of banks and large institutions. Instrumental in our success in expanding our appeal beyond the buy side to major sell-side institutions has been our evolution over the years from a nimble platform to one that retains that straightforward, easy-to-use experience but now with robust, sophisticated functionality that meets the demands of the most complex operations. We're bringing tremendous cost efficiencies -- in some cases reducing costs for global investment banks by 70% -- and reducing risk while making collateral usage more efficient for some of the world's largest banks, brokers and asset managers."
/jlne.ws/3Bwkloc
ALPIMA appoints new executive chair as it continues to expand; Incoming executive chair will focus on go-to-market, product development and long-term business growth.
Wesley Bray - The Trade
Portfolio construction and analytics platform ALPIMA has appointed Rafarl Febres-Cordero as executive chair of the company and chairman of its board of directors. Febres-Cordero will work alongside interim chief executive officer and chief operating officer, Geoff Langham, as well as the executive team and the board of directors, focusing on go-to-market, product development and long-term business growth.
/jlne.ws/3I35B2v
Fintech star Zanbato and innovative broker dealer Rialto Markets announce partnership
Rialto Markets
Private securities market pioneers, Rialto Markets and Zanbato, have formed a partnership to meet the demands of a fast-changing investor sector. Zanbato's Alternative Trading System, ZX, supports the world's largest membership of banks, brokers and their wealth management groups trading private company stock for their institutional and private wealth clients.
/jlne.ws/3uXzayL
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| Cybersecurity | | Top stories for cybersecurity | DOJ official warns companies 'foolish' not to shore up cybersecurity amid Russia tensions
Alexander Mallin andLuke Barr - ABC News
A top Justice Department official issued a stark warning Thursday to companies in the U.S. and abroad, calling on them to immediately shore up their cybersecurity defenses amid a potential Russian invasion of Ukraine.
"Given the very high tensions that we are experiencing, companies of any size and of all sizes would be foolish not to be preparing right now as we speak -- to increase their defenses, to do things like patching, to heighten their alert systems, to be monitoring in real-time their cybersecurity," deputy attorney general Lisa Monaco said in remarks at the Munich Cybersecurity Conference. "They need to be as we say, 'shields up' and to be really on the most heightened level of alert that they can be and taking all necessary precautions."
/jlne.ws/3uXrJYn
DoD Points to ND-ISAC as Trusted Cybersecurity Resource for DIB
Press Release
Against the background of international geopolitical tensions US government agencies worry about the potential for cyber incidents to target US companies . In anticipation of this the Department of Homeland Security's Cyber and Infrastructure Security Agency (CISA) and the Department of Defense (DoD) teamed up to get the word to all companies doing business with the DoD to tighten up their cybersecurity. On Monday (February 14) DoD officials reinforced a CISA advisory entitled, "Shields Up" (link: www.cisa.gov/shields-up). DoD officials also identified three cybersecurity resources for companies doing business with the DoD: the DoD Cyber Crime Center (DC3), the National Security Agency (NSA), and the National Defense Information Sharing and Analysis Center (ND-ISAC).
/jlne.ws/34Vmfm6
Dispelling The Biggest Myths In Cybersecurity
Dr. Oren Eytan - Forbes
Consensus in cybersecurity is hard to come by. From CISOs with the resources and motivation to think big to nontechnical executives chasing the risk-reward train and putting an IT title on things to justify their confusion, nothing is as it seems. The forces of risk and technology are constantly shifting as tech leaders collectively attempt to create a baseline understanding of what's at stake and what is feasible.
/jlne.ws/3oZ4kSl
SEC Proposes Rules to Enhance Cybersecurity Programs
Foreside - JDSupra
On February 9, 2022, the U.S. Securities and Exchange Commission requested comments to its first-ever cybersecurity risk management rule proposal. The rule is another significant step in the SEC's evolution toward enhancing the industry's cybersecurity posture. While a few existing rules implicate cybersecurity practices, such as Regulations S-P and S-ID, the Commission's new rule proposal articulates specific measures to address its concerns about security gaps identified in exams that continue to pose a threat to investors and the national market system. At the end of January, SEC Chair Gary Gensler hinted at possible cybersecurity rule changes to "strengthen financial sector registrants' cybersecurity hygiene and incident reporting" during his keynote address at the Securities Regulation Institute.
/jlne.ws/3oXDF8L
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| Cryptocurrencies | | Top stories for cryptocurrencies | Crypto Heavyweights Coinbase, Fidelity and Robinhood Back US Anti-Money Laundering Group
Ian Allison - Coindesk
A group of well-established firms active in cryptocurrencies in the U.S., including Coinbase, Fidelity and Robinhood, have joined together to bring digital assets in step with global anti-money laundering (AML) rules. In total, there are some 18 virtual asset service providers (VASPs) participating in the launch of the Travel Rule Universal Solution Technology (TRUST). Announced Wednesday, the TRUST platform was created in response to AML data sharing requirements recommended by the Financial Action Task Force (FATF) and prescribed by the Financial Crimes Enforcement Network (FinCEN).
/jlne.ws/3sRXC1A
Coinbase, Robinhood & Others Launch TRUST To Deal With Travel Rules
Aaryamann Shrivastava - FX Empire
As described by themselves, TRUST is aimed to be an industry-wide solution that has been created in order to comply with the mandates of the Travel Rule. Through this, the member cryptocurrency exchanges can easily and securely provide requisite data necessitated by the FinCEN.
/jlne.ws/359OgGE
Crypto company Circle seeks to double valuation to $9bn in Spac deal; Fintech group led by Bob Diamond pushes ahead with plans despite termination of previous funding arrangements
Siddharth Venkataramakrishnan - FT
US financial technology company Circle said on Thursday that its planned deal to list on Wall Street via a blank cheque company chaired by former Barclays chief Bob Diamond has doubled in value to $9bn.
/jlne.ws/3GWUtms
Sequoia earmarks $500mn for push into cryptocurrency markets; Silicon Valley VC group to bet on digital assets as part of broader restructuring plan
Miles Kruppa - FT
Sequoia Capital, one of Silicon Valley's most influential venture capital groups, plans to move deeper into cryptocurrency markets, earmarking at least $500mn for investments in digital assets.
/jlne.ws/358C7lf
USD Coin Issuer Circle Pushes Back Public Offering; The valuation in its SPAC merger doubles to $9 billion
Paul Vigna - WSJ
Circle Internet Financial Ltd., the crypto-focused firm that manages USD Coin, the second-largest stablecoin, pushed back the timetable for an initial public offering following its planned merger with a special-purpose acquisition company, or SPAC. The firm renegotiated its July 2021 agreement with Concord Acquisition Corp. CND -3.71% , extending its "termination date" for a public offering to Dec. 8, 2022, from April 3, according to a filing with the Securities and Exchange Commission. The company said the new date was necessary "for a variety of reasons outside the parties' control." While it has filed an S-4 form with the SEC, the commission hasn't yet declared the prospectus effective.
/jlne.ws/3oTdUq8
Cryptocurrency Trading Platform Uphold Reshuffles Top Brass
Ian Allison - Coindesk
Uphold, a platform offering cryptocurrency trading and digital asset debit cards, appointed Simon McLoughlin as its CEO. He takes over from J.P. Thieriot, who had held the position since late 2018. McLoughlin has served as Uphold's president and chief operating officer for the past three years. Thieriot, who joined the firm at its inception in 2013, becomes vice chairman, according to a press release.
/jlne.ws/3BvGTVT
Bakkt Expects to Post Losses in 2022 as Investment Ramps Up
Michael Bellusci - Coindesk
Digital asset platform Bakkt (BKKT) expects to incur quarterly net losses this year as the company invests in and grows its business, according to its fourth quarter and 2021 results. The company, which went public in October via a SPAC merger, said it expects to spend $150 million to $170 million this year to invest in future growth; Bakkt had roughly $390 million in cash on hand as of Dec. 31.
/jlne.ws/3gU2X34
South Korea's Bithumb and Upbit Achieve Unicorn Status
Bob Mason - FX Empire
South Korea has had plenty of crypto airtime in recent weeks, with increased crypto activity drawing the attention of regulators. Crypto exchanges, NFTs, and the Metaverse have all drawn increased interest. As a result of an increase in Bitcoin (BTC) and altcoin trading activity, illicit activity has also been on the rise, forcing regulators into action.Earlier this week, South Korea's Financial Supervisory Service (FSS) announced that it will tighten the monitoring of new traded assets. New traded assets would include cryptos and NFTs. The announcement followed the guilty verdicts of 7 V Global executives who received as much as 22-year jail sentences. Earlier in the year, prosecutors in South Korea had called for ring leaders of scams to receive life sentences.
/jlne.ws/3uWBeHa
FTX's Sam Bankman-Fried says crypto would get a boost if the Fed turned less hawkish and that 'there's not nearly enough' investment in innovative NFT applications
Phil Rosen - Business Insider
FTX CEO Sam Bankman-Fried said Thursday that a more dovish central bank could boost token prices and highlighted potential in NFT investing as his crypto exchange also takes on a venture capital role.
/jlne.ws/34U2uvf
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| Politics | | An overview of politics as it relates to the financial markets | The EU Got Its Act Together Over Ukraine. What Now? The bloc's eastward expansion and geopolitical ambitions have rattled Russia, but also exposed contradictions.
Lionel Laurent - Bloomberg
One of the unintended consequences of Russia's troop build-up on the border with Ukraine — which, according to NATO, has yet to be dialed back — has been to create a sense of unity among European Union members that are more often at each other's throats on security issues.
/jlne.ws/3sIIvHW
Ukraine Parliament Legalizes Cryptocurrencies
Kateryna Choursina - Bloomberg
The Ukrainian parliament backed in final reading a bill to legalize cryptocurrencies, Mykhaylo Fedorov, Ukrainian minister of digital transformation, said in a statement. Fedorov said the new law will help bring the sector out of the shadows. Crypto exchanges will be able to operate legally and assets in cryptocurrencies will be protected, he said.
/jlne.ws/3HTmQTL
Nancy Pelosi gets the best to both worlds with the latest stock deal
NY Post Editorial Board
You have to hand it to Speaker Nancy Pelosi: Her hand forced on clamping down on stock trading by members of Congress, she's turning it into a huge benefit for the lawmakers — most definitely including her. Pelosi coyly called for treating Congress the same as the Executive Branch when it comes to stocks — and so the "stringent" bill from Sens. Elizabeth Warren (D-Mass) and Steve Daines (R-Mont) would, yes, force members and their spouses to sell off their individual stock holdings, but also give them a ginormous tax break.
/jlne.ws/3Bslv3Y
Britons didn't know what they were doing when they backed Brexit, says European Parliament
James Crisp - The Telegraph
UK voters did not understand what they were voting for when they backed Brexit in 2016, the European Parliament said on Wednesday. In a report on the Article 50 process, which allows members to leave, MEPs suggested they could have swung the vote for Remain if they had campaigned and warned the "often misled" British voters of the risks of leaving.
/jlne.ws/3vdHjPR
Hong Kong Postpones Choosing Next Leader Amid Record Covid-19 Outbreak; Chief Executive Carrie Lam also confirms plans for universal testing of city's residents
Natasha Khan - WSJ
The city's top official said she was postponing the process for choosing Hong Kong's next chief executive as the government tackles the biggest coronavirus outbreak since the pandemic began. Chief Executive Carrie Lam said she invoked emergency powers to postpone a March 27 election by a committee of less than 1,500 mostly pro-Beijing figures to May 8. Mrs. Lam's first five-year term as leader ends June 30.
/jlne.ws/3p0rBnc
Canada's Banks Pressed Into Effort to Quell Protests; Under an emergency order, Canada is deploying tools designed for use against money launderers and terrorists against demonstrators
Richard Vanderford - WSJ
Canadian banks have begun cutting off financial services to people linked with ongoing anti-vaccine-mandate demonstrations in Canada, an unprecedented use of financial power following an emergency order from the government. With protesters occupying the streets of Canada's capital, Ottawa, and several border crossings blockaded until recently, the government has used emergency powers to put the nation's financial institutions in the unusual position of using their anti-money-laundering and sanctions expertise to crack down on banking customers.
/jlne.ws/3Ih39Wl
SEC 'Carefully Considering' Spot Bitcoin ETF in Response to Congressman
Martin Young - FX Empire
In a letter sent to Minnesota Congressman Tom Emmer on Feb. 15, the SEC laid out its reasoning for repeated rejections of a spot Bitcoin (BTC.) ETF. The pro-crypto Republican sent a letter to the financial regulator in November last year to SEC chair Gary Gensler requesting clarity on its decision-making processes for crypto-based investment products.
/jlne.ws/3gXU4Wk
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| Regulation & Enforcement | | For more regulatory, visit MarketsReformWiki, our website focused on current market reform efforts. | ASIC and RBA update MoU with European Securities and Markets Authority
ASIC
The Australian Securities and Investments Commission (ASIC) and the Reserve Bank of Australia (RBA) have updated the Memorandum of Understanding (MoU) with the European Securities and Markets Authority (ESMA) to reflect key amendments to the European Market Infrastructure Regulation (EMIR) 2.2 relating to central counterparties (CCPs). The MoU establishes regulatory and supervisory cooperation arrangements between ASIC, ESMA and the RBA with respect to Australian CCPs that are recognised or seeking recognition in the EU (covered CCPs). Under the MoU, signatories agree to provide the fullest cooperation permissible under their laws and regulations in relation to all relevant information and supervisory activities regarding the covered CCPs.
/jlne.ws/3oZ1fSi
ASIC consults on proposals to remake PDS, superannuation dashboard and FSG legislative instruments
ASIC
ASIC is seeking industry feedback on proposals to remake relief contained in seven legislative instruments relating to specific financial services disclosure requirements through a consultation paper released today. Most of the instruments will automatically repeal or cease in the next two years if not remade.
/jlne.ws/3rYNi8O
Department of Justice Announces Initiative to Protect Americans from Collusive Schemes Amid Supply Chain Disruptions; Initiative Puts Business Community on Notice that the Antitrust Division is Looking Out for Companies that Would Exploit Supply Chain Disruptions to Engage in Anticompetitive Conduct
FBI
In the wake of persistent price increases initially stemming from supply chain disruptions caused by the COVID-19 global pandemic, the Antitrust Division and the FBI announced an initiative today to deter, detect and prosecute those who would exploit supply chain disruptions to engage in collusive conduct.
/jlne.ws/34Nc9ni
Bankers Told to Expect Convictions in $441 Million Tax Fraud Scheme
Karin Matussek - Bloomberg
Judges share preliminary view of findings in Maple trial; Court calls for talks between defendants and prosecutors
Four former bankers at bankrupt Maple Bank GmbH were warned to expect convictions for their roles in so-called Cum-Ex transactions that robbed 388.6 million euros ($441 million) from German taxpayers. Their trades were set up to cream off refunds for taxes that were never paid, Presiding Judge Werner Groeschel said at a hearing in Frankfurt on Thursday.
/jlne.ws/3JC7qnu
UK set to cap costs for agencies pursuing unexplained wealth orders; Government plans to limit the financial risk to public agencies battling £100bn tide of dirty money
Kate Beioley and Laura Hughes - FT
The UK government is planning to limit the financial risk to law enforcement agencies from the use of unexplained wealth orders, as part of attempts to stem the tide of dirty money flowing through the City of London.
/jlne.ws/33t6OB0
CFTC Charges Hedge Fund Manager with Fraudulent Scheme to Overvalue Investment Funds by $1 Billion
CFTC
The Commodity Futures Trading Commission today filed a civil enforcement action in the U.S. District Court for the Southern District of New York, charging James R. Velissaris of Atlanta, Ga. with fraud in connection with a multi-faceted scheme to overvalue the assets managed by his multi-billion dollar hedge fund.
/jlne.ws/354peIE
Ex-Lazard Banker Convicted of Insider Trading in Germany
Karin Matussek - Bloomberg
Co-defendant handed jail term of three years and eight months; Pair accused of generating trade gains of almost $10 million
A former Lazard Ltd. banker was convicted of insider dealing after he was accused of helping an accomplice make millions from illicit trades. The ex-banker -- who can only be identified as D.R. -- worked at the lender's merger unit in Frankfurt and had access to in-house opinions on deals in the works. German judges handed him a suspended sentence on Friday.
/jlne.ws/3sOCd9B
ESMA's latest data on equities settlement fails paints a worrying picture with penalties now in play; Settlement failure rates in European equities have remained alarmingly high since March 2020 with market participants set to face a financial hit if the trend continues.
Jonathan Watkins - The Trade
The rate of equities settlement failures continues to remain at a high level according to new data from European regulators, a concerning reality with penalties now being enforced across the continent. Despite monthly fails never hitting the highs of March 2020 when percentages leapt to 14%, the one-year moving average still sat at around 8% towards the end of 2021, significantly higher than pre-pandemic levels. Three spikes in monthly fails figures also occurred between November 2020 and June 2021 where levels neared 12%.
/jlne.ws/3JDxq1w
SEC Charges Infinity Q Founder with Orchestrating Massive Valuation Fraud; Defendant Overvalued Fund Assets by More than $1 Billion, Pocketing Millions
SEC
The Securities and Exchange Commission today charged James Velissaris, the former Chief Investment Officer and founder of Infinity Q Capital Management, with overvaluing assets by more than $1 billion while pocketing tens of millions of dollars in fees.
/jlne.ws/3I050yA
Largest South Korean Telecommunications Co. Agrees to Pay the SEC to Settle FCPA Charges
SEC
The Securities and Exchange Commission announced that Seoul-based KT Corporation (KT Corp.) will pay $6.3 million to resolve charges that it violated the Foreign Corrupt Practices Act (FCPA) by providing improper payments for the benefit of government officials in Korea and Vietnam.
/jlne.ws/3I0nq1T
SEC Charges California Company and Promoters Engaged in Pump-And-Dump Scheme Involving Covid-19 Claims
SEC
The Securities and Exchange Commission today charged California-based Global Wholehealth Partners Corp., its CEO, and four penny stock promoters with conducting a $1.95 million fraudulent pump-and-dump scheme through a series of false and misleading statements in press releases and SEC filings, including false assertions about Global Wholehealth's purported emergency use authorization submissions for COVID-19 tests.
/jlne.ws/34JfhAV
SEC Charges Infinity Q Founder with Orchestrating Massive Valuation Fraud
SEC
The Securities and Exchange Commission today charged James Velissaris, the former Chief Investment Officer and founder of Infinity Q Capital Management, with overvaluing assets by more than $1 billion while pocketing tens of millions of dollars in fees. The SEC's complaint alleges that, from at least 2017 through February 2021, Velissaris engaged in a fraudulent scheme to overvalue assets held by the Infinity Q Diversified Alpha mutual fund and the Infinity Q Volatility Alpha private fund. According to the complaint, Velissaris executed the overvaluation scheme by altering inputs and manipulating the code of a third-party pricing service used to value the funds' assets. Velissaris allegedly collected more than $26 million in profit distributions through his fraudulent conduct and without disclosing his activities to investors.
/jlne.ws/3s1UOA6
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | World's Soybean Appetite Is Set to Shrink for the First Time in a Decade
Megan Durisin - Bloomberg
As commodity prices charge higher, at least one market is showing there are limits to demand. Soybean consumption will edge 1.1% lower in the current season, the first drop in a decade, the London-based International Grains Council forecast Thursday. Drought has gripped soybean heavyweights in South America, shrinking crop prospects and propelling prices 19% higher this year. That's curbing reserves and will herald "some demand rationing," IGC said. IGC said consumption of soybeans -- used in livestock feed, cooking oil and biodiesel -- would fall in Brazil and Argentina, while increasing in the U.S.
/jlne.ws/34Ox3m0
U.K. Bond Traders Pay Most in Over Decade to Hedge Price Swings
Libby Cherry and James Hirai - Bloomberg
Implied volatility on short rates climbs to highest since 2010; Traders brace for Fed, BOE and ECB decisions next month
Traders seeking refuge from whiplash that has plagued U.K. bond markets this year have pushed the cost of hedging price swings to the highest in over a decade. The implied volatility for short-dated rates -- among the most sensitive to changes in borrowing costs -- soared to the highest level recorded in data stretching back to 2010 this week. It comes as investors jostle to adjust positions before the European Central Bank, Bank of England and Federal Reserve set policy next month.
/jlne.ws/3LLEnQf
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | EU Eyes Bolstering Carbon Market Transparency as Prices Surge
Ewa Krukowska - Bloomberg
EU Commission to seek more detailed reporting on derivatives; EU to ask market watchdog to regularly analyze carbon trading
The European Union plans to boost the transparency of its carbon market after the price of pollution soared to records, triggering concerns by some governments and companies over the role of speculative investors.
/jlne.ws/35aMzc0
EU's Proposed Green Labels Have Lost Their Link to Science; Luckily, investors and financial regulators can still fix it
Kate Mackenzie - Bloomberg
The grand European plan to create a definitive, science-based taxonomy of green financial assets is in tatters. What might seem like just one of many fights taking place around the world over the credibility of a sustainable finance framework is actually far more serious. The EU taxonomy was meant to fulfill a role that so far had never really been attempted before: a detailed, granular resource mapping climate science to financial assets.
/jlne.ws/3gYwatA
UK Warns People to Stay Home as It Braces for 90 Mph Winds
Danica Kirka - AP
Millions of people in the U.K. were urged to cancel travel plans and stay indoors Friday as the second major storm this week prompted warnings of high winds and flying debris across northern Europe.
/jlne.ws/3rZdfFj
Climate Change Is Seen as Most Worrying Threat to World Security; While government officials are set to discuss geopolitical tensions at a conference in Munich, a new poll suggests people are more concerned about global warming
Jonathan Tirone - Bloomberg
Climate change is seen as a bigger threat than war by a majority of people living in some of the world's top economies, according to new data being presented to diplomats and military officials who convene Friday for a key security meeting in Germany. The poll commissioned by the Munich Security Conference listed concern over global warming, habitat destruction and extreme weather as the top three risks named by 12,000 people surveyed globally in November. The results are notable since polling coincided with some of the first reports of escalating military tension between Russia and Ukraine.
/jlne.ws/3LGadhd
France to Pump $2.4 Billion Into EDF as Profit Set to Slump
Francois De Beaupuy - Bloomberg
French utility hammered by reactor halts, government price cap; Company will sell more assets, offer to pay dividend in shares
The French state will inject about 2.1 billion euros ($2.4 billion) into Electricite de France SA as the combination of reactor shutdowns and a government power-price cap batters the utility's finances.
/jlne.ws/3s02HpG
Divesting fossil fuel stocks? That's so last year; How investors can stay green by turning brown
Merryn Somerset Webb - FT
Good news. You can now get 1.3 per cent on a Green Savings Bond at National Savings & Investments. Eagle-eyed readers will immediately note that this is 4.2 percentage points less than the rate of inflation in the UK, as the latest CPI numbers came in at 5.5 per cent. That's true — and something of a problem — but nonetheless 1.3 per cent is better than the 0.65 per cent NS&I offered only at the launch of the bonds a few months ago, which is nice. NS&I says this niceness is based on the rise in base rates since October — when it first launched the bond. Bank of England rates up, NS&I rates up.
/jlne.ws/356Fo4y
Short-selling does not count as a carbon offset; Hedge funds need to assess the real impact of climate change on portfolios
Jason Mitchell - FT
Could short-selling by hedge funds of carbon-polluters help save the planet? Despite being likened by critics every now and then to greedy nihilists responsible for multiple episodes of market volatility, short-sellers who bet on falling prices can play a role in moving the world towards net zero carbon emissions.
/jlne.ws/36qc6yr
Frackers Hold Back Production as Oil Nears $100 a Barrel; Prices are the highest since 2014, but top shale companies like Devon and Pioneer are choosing to grow slowly rather than drill more
Collin Eaton - WSJ
America's largest frackers are reporting huge profits but plan to keep oil production in low gear this year, adhering to an agreement with Wall Street, even as prices approach the $100-a-barrel mark for the first time since 2014. Three of the largest shale companies, Pioneer Natural Resources Co. PXD 3.44% , Devon DVN 2.60% Energy Corp. and Continental Resources Inc., CLR -0.04% this week reported their highest annual profits in more than a decade for 2021. The companies said they collected record amounts of extra cash by hanging on to the money they earn selling oil and natural gas and reinvesting only what they needed to keep output roughly flat. All three said they would continue to limit production growth this year.
/jlne.ws/3v0vTie
Climate Disclosure Poses Thorny Questions for SEC as Rules Weighed; Key sticking point is the counting and reporting of greenhouse gas emissions by customers and suppliers
Jean Eaglesham, Paul Kiernan - WSJ
Apple Inc. says it produced 47,430 tons of greenhouse gases in a recent year. The production of its computers and phones by its suppliers, plus their transportation and use by customers, generated an estimated 22 million tons. The numbers let investors and customers decide if Apple is a lean, green machine or a carbon hog.
/jlne.ws/3gWN9fT
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Allianz Takes $4.2 Billion Charge to Cover U.S. Fund Debacle
Stephan Kahl - Bloomberg
Blowup overshadows insurer's rebound from impact of pandemic; Firm expects to settle with major investors as talks go on
Allianz SE will take a 3.7 billion-euro ($4.2 billion) charge tied to its hedge funds that collapsed at the start of the pandemic, and said more expenses are coming from the multiple lawsuits and regulatory probes spurred by the implosions. The charge prompted a loss in the fourth quarter as Allianz said it expects to settle soon with major investors in the so-called Structured Alpha Funds. But the Munich-based insurer said it can't put a total price tag on the debacle as discussions with other plaintiffs, the U.S. Department of Justice and the U.S. Securities and Exchange Commission are ongoing.
/jlne.ws/3sOoEqL
Hedge Funds Millennium, Point72 Discuss Bids for Quant Firm Engineers Gate
Nishant Kumar and Katherine Burton - Bloomberg
Millennium Management and Point72 Asset Management are separately in talks to buy quant hedge fund Engineers Gate, according to people with knowledge of the matter.
/jlne.ws/3oZFWjB
NatWest returns to profit as UK economy rebounds; Booming mortgage market and fewer bad loans boost state-owned bank
Siddharth Venkataramakrishnan - FT
NatWest surged back into profit last year as the UK economy rebounded from the worst disruptions of the pandemic. A booming mortgage market and fewer bad loans than forecast helped the state-owned bank to a net profit of £2.95bn last year, a sharp reversal from a £753mn loss in 2020.
/jlne.ws/3vfOlDJ
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Fertilizer Markets Roiled by Belarus Potash Force Majeure; Tighter supplies for the key crop nutrient could mean further price hikes
Elizabeth Elkin, Jen Skerritt, and Tarso Veloso Ribeiro - Bloomberg
A Belarusian potash miner that accounts for a major chunk of global supply has declared force majeure, shaking up a market that's already contending with soaring prices.
/jlne.ws/3BsoDN2
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| Miscellaneous | | Stories that don't quite fit under the other sections | Looking for a Remote Job? It's Time to Update Your Résumé; Employers are going to want to be convinced that you are able to work from home. Here are a few simple changes to get that across.
Alexandra Samuel - WSJ
Are you the kind of employee with the skills to work remotely? It's time to prove it to your employers—or prospective ones. As offices reopen, more employers will be embracing the hybrid model of work in which most professionals spend at least part of their time working remotely. As a result, human-resources departments and bosses have a new set of hiring criteria: Not only do they need to recruit people who are talented, hardworking and collaborative, but they need employees who can be productive and collaborative even when they're working outside the office.
/jlne.ws/3JDJ7FG
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