| September 04, 2024 | "Irreverent, but never irrelevant" | | | | John Lothian
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John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
There was a Bloomberg story from August 30 titled "Crypto Owners More Likely to Have Psychopathic Traits, Study Says" that we had not included and I wanted to comment on. This is only one study, but it was rather sensational, so it should be highlighted. A study by researchers from the University of Toronto and the University of Miami, published in PLOS One, suggests that cryptocurrency owners are more likely to exhibit "dark" personality traits, including narcissism, Machiavellianism, psychopathy, and sadism. The study, which surveyed 2,001 American adults, also found that crypto holders are more prone to believing conspiracy theories, supporting extremist groups, and displaying traits like paranoia and a victimhood mentality. Despite the study's findings, some crypto enthusiasts dismiss the implications, citing the volatility of the market as a natural filter for those with a high tolerance for risk. The study notes that being male, having a victimhood mindset, and relying on fringe social-media for news are strong predictors of cryptocurrency ownership.
Bloomberg also reports that the London Metal Exchange (LME) plans to enhance electronic trading by requiring dealers to place small trades in monthly contracts electronically, potentially reducing activity in its traditional three-month rolling contracts. This move aims to make monthly contracts the main liquidity point, aligning with practices on rival exchanges and modernizing LME's market operations. These changes come in response to pressure for modernization, especially following the 2022 nickel crisis. While some users fear this could undermine the LME's unique trading model, the exchange believes these measures will support fair, orderly, and efficient markets and increase participation.
If you like the heat, then Phoenix, AZ is the place for you. The New York Times reports that Phoenix has reached a record-breaking 100 consecutive days of temperatures over 100 degrees Fahrenheit, surpassing the previous record of 76 days set in 1993. The National Weather Service predicts this heat streak will continue, driven by a drier-than-normal monsoon season. This summer was the hottest on record for Phoenix, with an average temperature of 98.9 degrees. More than 30 million people in the Southwest are under an excessive heat warning, with temperatures in Phoenix expected to reach up to 118 degrees.
Here are excerpts from in front of FOW's paywall from some recent stories: The London Metal Exchange (LME) is proposing new block trading limit rules to boost liquidity and electronic trading. Meanwhile, US Treasury market participants anticipate increased trading costs and more competition due to upcoming clearing mandates. Eurex is set to launch a STOXX Europe 600 index total return future on September 30, following a 16% increase in August trading volumes, driven by interest rate and equity derivatives. The LCH is still considering entering the US Treasury clearing space amid concerns over new regulatory timelines. Crypto market maker B2C2 is expanding its management team to enhance its institutional client network ahead of new global regulations. Nasdaq suggests that clearing firms upgrade their technology to meet new regulatory demands, while the European Energy Exchange (EEX) sees growing confidence in Nordic power futures markets. Eurex has adjusted VSTOXX index derivatives terms and incentives after a recent volatility spike, and Nasdaq reports strong support in Nordic power trading, despite efforts to sell the region's main power market.
The class action lawsuit, Sheldon Langer et al vs. CME Group and CBOT previously assigned to Judge Celia Gamrath, Chancery Court has been transferred to Judge Kathy Flanagan, Acting Judge of Law Division.
Broadridge Financial Solutions, Inc. has appointed Brian Pomraning as chief product officer for Broadridge Trading & Connectivity Solutions, effective September 3, 2024. Pomraning, with 25 years of experience in the financial services industry, will lead the global product management team. He previously served as chief revenue officer at Exegy and has held senior roles at Investment Technology Group, JP Morgan, Barclays, and Lehman Brothers. Frank Troise, president of Broadridge Trading & Connectivity Solutions, praised Pomraning's appointment as a step toward delivering cutting-edge trading solutions for global financial institutions.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
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Our most read stories from our previous edition of JLN Options were:
- Options Trader Spends $9 Million Betting on September Volatility Spike from Bloomberg.
- ANALYSIS: Top US derivatives banks continue to grow market share from FOW.
- Citadel Securities leads fight over payments for market surveillance system from the Financial Times. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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Eurex Expands Crypto Derivatives Offerings With FTSE Russell Indices, Targeting Institutional Investors.
JohnLothianNews.com
Eurex and FTSE Russell are expanding cryptocurrency derivatives offering by targeting institutional investors with new Ethereum-based products. Eurex expanded its crypto derivatives portfolio with the launch of FTSE Ethereum Index Futures and Options on August 12, 2024. These products complement Eurex's existing Bitcoin derivatives, which were launched in April 2023.
Listen to the podcast »
Gary DeWaal - Katten Muchin Rosenman LLP
Watch Video »
Shun Takato - JPX Market Innovation & Research
Watch Video »
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LaSalle Street 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 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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Wall Street's T+1 Switch Is Proving Tougher Than Anticipated; Poll of market players shows shift was tougher than expected; Headcounts are still adjusting; buyside funding costs are up
Greg Ritchie - Bloomberg
This year's seemingly smooth transition to a faster settlement regime for US stocks turns out to have been far from plain sailing for many industry players, according to Citigroup Inc. From overhauling arcane funding processes to relocating traders across oceans, the late-May switch to the system known as T+1 proved tougher than expected, the bank found in a survey of market participants.
/jlne.ws/4cWWvmm
****** Who said this was going to be easy?~JJL
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Climate Change Is Making 'Last Chance Tourism' More Popular, and Riskier; More tourists are eager to visit vanishing glaciers and ice caves, but warming is also making the sites unstable.
Austyn Gaffney - The New York Times
An American tourist was visiting an ice cave in one of Europe's largest national parks last month when a frozen arch collapsed, killing him and injuring his girlfriend. While the accident in Iceland cannot be directly linked to climate change, experts say that, as temperatures increase, the recession and disappearance of glaciers has popularized a new form of adventure travel called "last chance tourism."
/jlne.ws/3XvbMXa
****** I can think of a bunch of other things, much safer, I would like to be doing.~JJL
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A New 84-Year-Old Scotch From the Macallan Is Its Oldest and Rarest; Paired with a five-year-old flask, the two-bottle package of "liquid history" is priced at $190,000.
Kara Newman - Bloomberg
The Macallan is raising the stakes-and prices-on its collectible whisky and betting that single-malt aficionados will be willing to lay down double six figures for an extra-aged dram of "liquid history," plus as a sneak peek into what the distillery's future holds. The two-bottle Time:Space Collection comes timed to the 200th anniversary of the single-malt Scotch brand and includes a rounded, doughnut-shape bottle of an 84-year-old whisky, the oldest and rarest from the distillery. Then in the center of that bottle fits a 375ml flask of a five-year-old single malt, distilled in 2018 when the Speyside whisky maker opened its new campus; it's notable as the first release from the new facility.
/jlne.ws/3Xgkh7d
****** You can't have a sip, but you can touch your lips to taste. That will be $1,000.~JJL
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Tuesday's Top Three
Our top clicked item on Tuesday was the late Eric Gilliland's page on Wikipedia. Second was Citadel Securities, Jane Street on Track for Record Revenue Haul, from Bloomberg. Third was EEX's announcement on LinkedIn of the first trade in its new GO Futures, which had a volume of 50,000 GOs.
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| Lead Stories | Six rating agencies to pay over $49 million over recordkeeping failures, SEC says
Reuters
Six credit rating agencies agreed to pay a total of more than $49 million in civil penalties to settle U.S. Securities and Exchange Commission charges they broke recordkeeping rules, the regulator said on Tuesday. Moody's Investors Service, S&P Global Ratings, Fitch Ratings, HR Ratings de Mexico, A.M. Best Rating Services and Demotech each admitted to significant failures by the firms and personnel to maintain and preserve electronic communications, the SEC said.
/jlne.ws/3B21vZy
Nvidia Gets DOJ Subpoena in Escalating Antitrust Probe; Department also sent subpoenas to third parties in case; Nvidia has built a dominant position in AI computing
Ian King and Leah Nylen - Bloomberg
The US Justice Department sent subpoenas to Nvidia Corp. and other companies as it seeks evidence that the chipmaker violated antitrust laws, an escalation of its investigation into the dominant provider of AI processors. The DOJ, which had previously delivered questionnaires to companies, is now sending legally binding requests that oblige recipients to provide information, according to people familiar with the investigation. That takes the government a step closer to launching a formal complaint.
/jlne.ws/4cXXsuB
Germany Ushers In End of Commerzbank Rescue With Sale Plan; First sale could happen as early as this month, person says; The government is still the largest investor after bailout
Jan-Henrik Foerster, Eyk Henning, and Arno Schuetze - Bloomberg
Germany plans to sell a significant part of its stake in Commerzbank AG as it seeks to draw a line under the lender's bailout more than a decade ago. Berlin, which owns 16.5% of Commerzbank, will initially target a disposal of 3% to 5% in the Frankfurt-based firm, according to people familiar with the matter, who asked not to be identified because the process is private. That could happen as early as this month, with more sales possible at a later date, the people said.
/jlne.ws/3XxkHHL
US Treasury Clearing to Increase Trading Costs, Study Finds; Coalition Greenwich finds market safety will come with costs; Survey suggests trading volumes will fall with hedge funds hit
Greg Ritchie - Bloomberg
Mandatory central clearing of US Treasuries will make the market safer, but at the expense of costlier trading and potentially curtailed volumes, according to a new Coalition Greenwich survey. Over 70% of the 34 market participants questioned expect the cost of trading to rise due to new margin requirements and clearing fees, the study published Wednesday found. And around 85% of respondents believe increased margin costs could cause them to reduce their trading activity. The survey included four of the top five Treasury dealers by revenue, and was conducted during the second quarter.
/jlne.ws/4gdFRSA
The Brutal Economics of Reaching Net Zero; Ramping down global emissions is achievable in terms of cost. But until the US and other rich countries assume a war footing, we don't stand a chance of meeting critical climate goals.
J.B. MacKinnon - Bloomberg
Last year, at the 28th annual United Nations Climate Change Conference, almost 200 countries pledged to help reach "net zero"-the point at which human civilization no longer emits greenhouse gases or else removes from the atmosphere the small amount we still do-by 2050. More than half the world's largest corporations have made comparable commitments. If we pull it off, we might limit the planet's heating to not much more than 1.5C, which would already be costly and damaging.
/jlne.ws/3XkjnGW
Credit-Rating Providers Settle With SEC Over Off-Channel Communication Violations; Regulators have been targeting banks and other financial firms' use of messaging apps
David Smagalla - The Wall Street Journal
Six credit-rating providers, including Moody's Investors Service and S&P Global Ratings, agreed to pay a total of $49 million in civil penalties in the latest settlement with the Securities and Exchange Commission over the use of so-called off-channel communications. Moody's and S&P each agreed to pay $20 million to settle the allegations, according to an SEC statement released Tuesday. Fitch Ratings agreed to pay an $8 million penalty, while A.M. Best Rating Services agreed to pay $1 million, according to the SEC. Also charged were HR Ratings de México, which agreed to a $250,000 penalty, and Demotech, with a $100,000 penalty, the regulator said.
/jlne.ws/3XfKDX3
The viral 'Chase bank glitch' is actually a crime and could land you in prison
Marco Quiroz-Gutierrez - Fortune
A new TikTok trend has people risking prison time for a "free money" hack that is really just run-of-the-mill fraud.
/jlne.ws/3APnWBv
SEC's WhatsApp Probe Expands as Moody's, S&P Hit With Fines; Moody's, S&P Global and Fitch to pay combined $48 million; Penalties add to billions that banks have agreed to pay SEC
Lydia Beyoud - Bloomberg
Moody's Corp., S&P Global Inc. and Fitch Ratings Inc. will pay a combined $48 million over allegations that the credit-rating companies failed to keep proper electronic communications - the latest fallout from US regulators' so-called WhatsApp investigations. The Securities and Exchange Commission said Tuesday that Moody's and S&P will each pay $20 million to settle the cases, while Fitch will pay $8 million. The firms acknowledged violating the agency's recordkeeping rules and will retain a compliance consultant, the SEC said in a statement.
/jlne.ws/4e15FiO
Carry Trades: How They Work And Why They Rocked Global Markets; On today's Big Take Asia podcast: how the yen carry trade got so popular, why its unwinding is rattling global markets, and will it...carry on?
K Oanh Ha, Jessica Beck, Yang Yang, Naomi Ng, Alexander Sugiura, and Stacey Smith - Bloomberg
They caused global markets to seize up - and raised serious questions about just how much money was at stake. No, we're not talking about Nvidia's earnings. Or the US jobs report. We're talking about carry trades - an obscure part of international markets that's suddenly less obscure. On today's Big Take Asia podcast, the Bloomberg Explains series continues with Bloomberg Opinion columnist Shuli Ren. She tells hosts K. Oanh Ha and David Gura about how the yen carry trade became so popular with big banks to small-time investors, what went wrong during the August markets rout and how soup dumplings are key to understanding why carry trades shouldn't work ... but do.
/jlne.ws/3MwQ3YB
Lutnick Leads Sponsors Boosting SPACs to Biggest Month Since 2022; Avi Katz's GigCapital, Asia casino magnate Ho back new SPACs; Blank checks raised more than $2 billion in US IPOs in August
Bailey Lipschultz - Bloomberg
The blank-check market is heating up after the largest month for related initial public offerings since 2022, with a mix of new and experienced sponsors pricing new deals and a rush of additional debutants expected to come. Avi Katz's GigCapital Global, which has closed five deals, raised $200 million while Howard Lutnick and Asia casino magnate Lawrence Ho's family office each priced their own offerings last month. All told, some $2 billion was raised across nine US-listed special-purpose acquisition companies in August, the biggest flow of deals and proceeds since early 2022, data from SPAC Research show.
/jlne.ws/47digNv
Global data center industry to emit 2.5 billion tons of CO2 through 2030, Morgan Stanley says
Reuters
A boom in data centers is expected to produce about 2.5 billion metric tons of carbon dioxide-equivalent emissions globally through the end of the decade, and accelerate investments in decarbonization efforts, according to Morgan Stanley research. Hyperscalers, which include Google , Microsoft , Meta and Amazon , are driving the swift proliferation of electricity-guzzling data centers to expand their artificial intelligence and cloud computing technologies. At the same time, the companies are holding onto pledges to slash global warming emissions from their centers by 2030.
/jlne.ws/47g7iGY
Hedge fund boss Ken Griffin reportedly launches fresh attack at 'brazen' SEC cash grab
James Franey - NY Post
Hedge fund titan Ken Griffin is leading the charge to stop a move by US regulators that would force traders to help bankroll a new market surveillance system, according to a report. Griffin's Citadel Securities wants to block new rules that demand investors stump up funds for the so-called Consolidated Audit Trail system that has already cost an estimated $1 billion, the Financial Times reported on Tuesday.
/jlne.ws/3Z7NQKN
High Rates Expose Global Banking's Multi-Trillion-Dollar Weak Spot; Last year's US crisis shined the spotlight on regional banks; Lenders in the UK, India, Italy have all faced recent stress
Laura Noonan, Whanwoong Choi, Sonia Sirletti, and Ann Choi - Bloomberg
The sleek London branches of Metro Bank Holdings Plc have little in common with the storefront of Banaras Mercantile Co-operative Bank near the Ganges River in northeast India or the specialty-finance operations of Milan's BFF Bank SpA. But those very different lenders, like Silicon Valley Bank before them, are all part of a shifting and, in some cases, worrying global trend for regional banks. Interest-rate shocks, regulatory burdens and a yawning tech gap are disrupting lenders that have served as a bedrock for regional economies for centuries, threatening to cut off consumers and businesses from their traditional funding routes.
/jlne.ws/3TeLCW6
Slowdown Deja Vu Rattles Global Markets; Investors sent technology stocks and other assets tumbling on concerns that the U.S. economy could be headed for a hard landing.
Andrew Ross Sorkin, Ravi Mattu, Bernhard Warner, Sarah Kessler, Michael J. de la Merced, Lauren Hirsch and Ephrat Livni - The New York Times
The sell-off goes global September is known as the worst month of the year for stocks, and so far it's living up to that reputation - especially for Nvidia shareholders. Global stock markets are awash in red on Wednesday, as fears of an economic slowdown in the United States rattle investors ahead of Friday's pivotal jobs report. Here's the latest: S&P 500 futures were down 0.3 percent in premarket trading. Stocks in Asia and Europe broadly sold off on Wednesday. Oil prices also fell as global growth concerns accelerated, and the price of Bitcoin dropped, nearing a one-month low.
/jlne.ws/4eaF7vG
BlueX trading technology platform goes live with aim to bolster FX trading efficiency; Platform aims to simplify execution and make decision-making easier for traders, with data and analytics built into every trade.
Wesley Bray - The Trade
New FX trading technology platform BlueX has announced its official go-live, having executed its first production trades. The development follows BlueX being granted its licence by the Jersey Financial Services Commission (JFSC). The platform offers trading tools and workflow automation, providing global institutional market participants versatile and efficient trading solutions.
/jlne.ws/3ZakpYi
Appital expands European equity coverage through addition of Virtu Financial's POSIT MTF; The move will provide buy-side firms with execution capabilities for more than 21,000 equities across 24 European countries.
Wesley Bray - The Trade
Appital has expanded its European equity coverage to more than 21,000 equities across 24 European countries with the addition of Virtu Financial's POSIT MTF as a European execution venue. The firm has also added Virtu Financial as an executing broker for client flows negotiated on Appital's BookBuilder platform, offering buy-side participants improved options for executing large orders.
/jlne.ws/3XqFUCW
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | How War Crimes Charges Complicate Putin's Travels
Erik Larson - Bloomberg
Russian President Vladimir Putin is cautious about where he travels abroad these days. He had avoided visiting the 124 countries that are members of the International Criminal Court, given that they are obliged to honor a warrant for his arrest for alleged war crimes in Ukraine. However, ICC member Mongolia failed to enforce the warrant when Putin paid a call Sept. 3, after giving him advance notice that he wouldn't be detained. The visit underscored the unlikelihood that Putin will be brought to justice under international law.
/jlne.ws/3z9giRN
Zelenskiy orders war's biggest reshuffle to give Ukraine 'new energy'
Olena Harmash - Reuters
President Volodymyr Zelenskiy said on Wednesday that Ukraine needed "new energy", as he ordered a major government reshuffle at a crucial juncture in the war against Russia. A total of six ministers, including Foreign Minister Dmytro Kuleba, submitted their resignation and parliament accepted the resignations of four.
/jlne.ws/4ecySan
Russian missiles kill 50 in strike on Ukrainian military institute
Olena Harmash - Reuters
At least 50 people were killed and 271 wounded when Russia hit a military institute in Ukraine's central town of Poltava with two ballistic missiles on Tuesday, the war's deadliest single attack this year. Photographs posted on social media showed several bodies of young men on the ground covered in dust and debris, with the badly damaged side of a large building behind them. Reuters could not immediately verify the images.
/jlne.ws/3TfQWJ0
Russia built covert trade channel with India, leaks reveal; Files outline Moscow's plan to spend rupees from oil sales on sensitive electronics for war effort
John Reed, Max Seddon, Chris Cook and John Paul Rathbone - Financial Times
Russia has been secretly acquiring sensitive goods in India and explored building facilities in the country to secure components for its war effort, according to Russian state correspondence seen by the Financial Times. Moscow's industry and trade ministry, which oversees defence production to support Vladimir Putin's full-scale invasion of Ukraine, drew up confidential plans in October 2022 to spend about Rs82bn ($1bn at the time) on securing critical electronics through channels hidden from western governments.
/jlne.ws/4gq9SyH
Europe's ESG funds more than double defence holdings amid Ukraine war; Sector's shares have soared and asset managers in debate on whether investing in it can be seen as sustainable
Lee Harris and Sylvia Pfeifer - Financial Times
The value of European sustainable investment funds' exposure to defence stocks has more than doubled since Russia's invasion of Ukraine, as policymakers push the need for a strong defence industrial base. About a third of funds in Europe and the UK focused on environmental, social and governance issues now have EUR7.7bn invested in the sector, compared with EUR3.2bn in the first quarter of 2022, according to an analysis for the Financial Times by Morningstar Direct.
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Israel Open to Negotiating Gaza-Egypt Border Area at End of War
Jonathan Ferro, Annmarie Hordern, and Dan Williams - Bloomberg
Israel is open to negotiating the issue of the military's control of Gaza's border with Egypt after the end of the war with Hamas, Strategic Affairs Minister Ron Dermer said, though must maintain a presence to prevent the group re-arming during a proposed truce. In an interview with Bloomberg TV, Dermer said the question of control over the so-called Philadelphi Corridor is among around a half-a-dozen disputes holding up a cease-fire agreement with Hamas. The US, Qatar and Egypt have been attempting to broker a deal between the two sides for several months without success.
/jlne.ws/3Xw2cn1
Norway Wealth Fund Advisor Weighs More Israel Exclusions; Ethics council sends recommendations letter to fund supervisor; NBIM usually complies with council advice, but doesn't have to
Kari Lundgren and Heidi Taksdal Skjeseth - Bloomberg
The ethics council for Norway's $1.7 trillion sovereign wealth fund said it may recommend widening the list of companies to exclude over their links with Israel, which is fighting a war in Gaza and operating militarily in the West Bank. Over the years, nine companies have been excluded from the fund for activities in the West Bank, ranging from the construction of roads to the leasing of buildings. An exclusion means the fund, Norges Bank Investment Management, sheds its holdings and refrains from buying more.
/jlne.ws/3TfGf92
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Instituto BME signs collaboration agreement with the Dominican Republic Stock Exchange (BVRD); BME's training centre, which has taught more than 137,500 students over its three decades of history, strengthens its presence in Latin America
BME-X
Instituto BME, BME's training centre, has signed a collaboration agreement with the Dominican Republic Stock Exchange (BVRD). The inter-institutional agreement seeks to promote financial education in both countries and contribute to the development of capital markets through virtual training courses. The cooperation between the two institutions will consist of the creation and implementation of financial information programmes, including workshops, webinars and courses aimed at financial sector professionals, individual investors and the general public interested in increasing their financial literacy. With this agreement, BME Institute and BVRD reaffirm their commitment to promoting financial education and their vocation to support the growth of the capital markets through education and continuous training.
/jlne.ws/4dLxWKo
CME Group Reports Second-Highest Monthly ADV of 31.7 Million Contracts in August and Double-Digit Increases Across All Six Asset Classes
CME Group
CME Group, the world's leading derivatives marketplace, today reported its second-highest monthly volume ever, with average daily volume (ADV) up 31% to 31.7 million contracts in August, driven by double-digit increases across all six asset classes. The company's interest rate ADV reached a record 18.3 million contracts and its deeply liquid U.S. Treasury complex hit an all-time monthly record ADV of 11.5 million contracts, including the highest volume ever for 2-year, 5-year and 30-year futures contracts. In addition, SOFR futures and options volume climbed 48% to 6.3 million contracts and the company's BrokerTec cash U.S. Treasury notional volume hit a year-to-date record of $249 billion on August 5.
/jlne.ws/4dUyWMn
Weakening farm income prospects weigh on farmer sentiment
CME Group
The August Purdue University/CME Group Ag Economy Barometer dropped 13 points from July to a reading of 100, echoing levels seen from fall 2015 to winter 2016 during the early stages of a significant downturn in the U.S. farm economy. The Index of Current Conditions also dropped 17 points to 83, while the Index of Future Expectations decreased by 11 points to 108. Weakening farm income prospects weighed on farmers' sentiment as the outlook for a bountiful fall harvest was more than offset by declining crop prices. This month's survey was conducted from Aug. 12-16, 2024.
/jlne.ws/4eaDqOQ
CME Group SOFR Futures Hit New Open Interest and Volume Records
CME Group
CME Group, the world's leading derivatives marketplace, today announced that open interest in its deeply liquid SOFR futures set a new record of 12,701,232 contracts on August 28, as the product's average daily volume (ADV) reached a record 3.5 million contracts year-to-date.
/jlne.ws/3Xai1OS
Expanded Friday Trading Hours for the New Zealand Dollar/U.S. Dollar Contract on FX Link
CME Group
/jlne.ws/4esSl7d
EEX Press Release - Successful start to trading GO Futures
EEX
The European Energy Exchange (EEX), in collaboration with IncubEx, has successfully launched four new futures contracts on Guarantees of Origin (GO). Launched on 2 September, the new GO Futures include four separate contract types: a general contract for European renewable power GOs and three technology-specific products, for wind, hydro and solar. The launch day saw both trading on-exchange and trade registration in the European Renewable Power GO contract. The very first trade was registered for clearing between Uniper and ENGIE in the European Renewable Power GO contract, with a volume of 50,000 GOs, brokered by ICAP. Also on Monday, EEX saw the first screen trade on the exchange in the same contract, concluded between Compagnie Nationale du Rhône and another counterparty, with a volume of 1,000 GOs. The total traded volume so far stands at 112,000 GOs.
/jlne.ws/3z6fNrB
LME Planning Measures to Boost Trading in Monthly Contracts
Mark Burton and Jack Farchy - Bloomberg
The London Metal Exchange is planning measures to boost electronic trading in its monthly contracts, a move that may reduce activity in its unique three-month rolling contracts that serve as a benchmark for the global metals industry. The moves, which will include a requirement for dealers to place small trades in monthly contracts electronically, may lead to those contracts becoming the "key liquidity point" for users, just like they are on rival exchanges, the LME said in a notice to members Wednesday.
/jlne.ws/3z5C5K6
LME Progresses Market Structure Evolution To Enhance Liquidity
London Metal Exchange
LME market structure modernised to boost transparency and increase price competition, for the benefit of all market participants; Protection of daily prompt date structure and Cash price, which are crucial for physical market trading; Introduction of industry-standard block rules with liquidity provider programme to support on-screen liquidity; Crossing rules and increased market data transparency for inter-office trades; Corresponding rules for OTC lookalike trades to ensure level playing field with on-exchange market.
The London Metal Exchange (LME) has today issued a white paper setting out a package of measures designed to modernise the LME's market structure, boost transparency and increase price competition, while protecting the unique features of its market that serve the physical metal communities.
/jlne.ws/4d0BBmE
ICE Mortgage Monitor: Rate drops make August most affordable month since February, as home price growth cools to 12-month low
Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, today released its September 2024 ICE Mortgage Monitor Report , based on the company's robust mortgage, real estate and public records data sets. August's mortgage interest rate declines have brought home affordability to its best point in six months. And while purchase mortgage demand has seen a couple of its best weeks since mid-March in response, the rise was muted in comparison to early 2023 and 2024 when rates fell to similar levels. As Andy Walden, ICE Vice President of Research and Analysis, explains, that may actually be good news for the Fed's goal of lowering rates without overheating the market.
/jlne.ws/3XtO0L0
August 2024 figures at Eurex
Deutsche Boerse Group
Eurex, Europe's leading derivatives exchange, reported a 16 percent increase in total trading volume, reaching 154.6 million contracts in August, compared to 133.4 million contracts in the same month last year. Interest rate derivatives continued to show significant growth, rising by 24 percent from 54.9 million to 68.2 million contracts. Equity derivatives grew by 22 percent, totaling 20.8 million contracts, while index derivatives saw a 5 percent increase, from 61.4 to 64.6 million traded contracts.
/jlne.ws/4e4Viu8
Moscow Exchange Trading Volumes in August 2024
MOEX
In August 2024, total trading volumes across Moscow Exchange's markets was RUB 125.4 trln (August 2023: RUB 127.5 trln). Unless stated otherwise, all figures below refer to performance for August 2024 and all comparisons are with the same period last year.
/jlne.ws/3XvemMO
NSE Indices launches Nifty500 Multicap Momentum Quality 50 index
NSE
NSE's index services subsidiary, NSE Indices Limited today launched a new strategy index - Nifty500 Multicap Momentum Quality 50 index. The Nifty500 Multicap Momentum Quality 50 index aims to track the performance of the large, mid and small cap stocks which are selected based on the combination of momentum and quality factors from the Nifty 500 index. 10 stocks from the Large cap universe (stock forming part of the Nifty 100 index), 15 stocks from the Midcap universe (stock forming part of the Nifty Midcap 150 index) and 25 stocks from Smallcap universe (stock forming part of the Nifty Smallcap 250 index) based on the combination of momentum and quality factors are selected to be part of the Nifty500 Multicap Momentum Quality 50 index.
/jlne.ws/4g7RV7D
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | UK clears Microsoft's partnership with Inflection AI
Reuters
Britain's competition regulator, on Wednesday, cleared Microsoft's hiring of some former staff of Inflection AI and its partnership with the startup and said the deal did not required a deeper investigation. The Competition and Markets Authority began a probe in July to examine if the deal might lead to competition concerns in the country since both companies develop and supply consumer chatbots.
/jlne.ws/4geRics
ActiveViam Announces Leadership Succession; Shelley Magee named new chief executive officer; Kathy Perrotte to remain engaged as board member and advisor; Transitional plan will build on company's position as top provider of data analytics solutions to financial institutions
Business Wire
ActiveViam, a global provider of advanced data analytics and decision-making solutions for financial services organizations, announced today that its Board of Directors has unanimously elected Shelley Magee to succeed Kathy Perrotte as the company's chief executive officer, effective immediately. Ms. Magee will join the Board of Directors, and Ms. Perrotte will remain on the Board and act as special advisor to the company.
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Companies' AI Bets Are Reaching Astronomical Heights. Why the C-Suite Likes Its Odds Anyway; The costs of adopting artificial intelligence are soaring, but so are some executives' expectations
Steven Rosenbush - The Wall Street Journal
A few months ago, it might have seemed that the stakes of the artificial-intelligence investment wave couldn't have gotten much higher. Well, they have. Sequoia Capital last September published a report arguing that Nvidia infrastructure would have to collectively generate $200 billion in lifetime revenue to justify companies' spending on those advanced AI systems over the course of just one year-and the spending wasn't anywhere near that mark.
/jlne.ws/3z7deFW
Facing platform shutdown, former IEX Cloud head buys its assets in 11th-hour bid; Tim Baker, Pedro Aguayo, and a silent partner have come together to purchase IEX Cloud's assets days before the exchange was to retire all its products on August 31.
Rebecca Natale - Waters Technology
On August 12, Tim Baker, former head of IEX Cloud, told his former colleague, Pedro Aguayo, that he thought it was a shame that IEX, a New York-based upstart exchange, had decided to shutter its cloud-based data marketplace and development center.
/jlne.ws/4gbKHiV
Wake Me When the Internet of Things Is Over; Makers of smart washing machines and refrigerators should admit defeat and let dumb things remain dumb.
Adrian Wooldridge - Bloomberg
Back in 2013, fashionable people started wearing glasses with a small but inevitably conspicuous built-in heads-up display and camera. These fashionistas were unusually distracted even for a distracted age - losing the threads of conversation, staring off into space, tilting their heads in odd ways, muttering strange commands ("Take a picture," "record a video") and every now and again reciting impressive, if irrelevant, lists of facts magicked up from the pages of Wikipedia. The glasses were called "Google Glass," the unfortunate creatures who wore them "Glass Explorers." The "Glass Explorers" were soon dubbed "Glassholes," the fad faded and the glasses are no longer available.
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| Cybersecurity | | Top stories for cybersecurity | Trump Relatives Hacked on X With Fake Crypto Announcement; Post on Eric Trump's X profile warns of compromised accounts; Trumps are preparing a project in a niche segment of crypto
Suvashree Ghosh - Bloomberg
Social media profiles belonging to some Trump family members were compromised on Tuesday to put out a fake announcement about a crypto project. Posts on the X accounts of Lara and Tiffany Trump related to the World Liberty Financial project were part of a "scam," and X locked down those profiles "within minutes," according to statements by Donald Trump's son Eric on the platform formerly known as Twitter.
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| Cryptocurrencies | | Top stories for cryptocurrencies | Nigerian Court Weighs Binance Executive's Bail Application; Abuja court judge defers bail-plea decision until Oct. 9; US citizen Tigran Gambaryan has been detained since February
Nduka Orjinmo - Bloomberg
A Nigerian court will deliver its judgment on Oct. 9 on a bail application by a Binance Holdings Ltd. executive, who's been held in the West African country for more than six months. Tigran Gambaryan, the head of financial-crime compliance at Binance whom US lawmakers say has been unjustly detained, sought bail on the grounds of his ill health.
/jlne.ws/3MScHel
'Strap In'-Serious $40,000 Bitcoin Price Crash Warning Issued As The Fed Suddenly Braces For A U.S. Dollar 'Crisis' That's Predicted To Spark 'Total Collapse'
Billy Bambrough - Forbes
Bitcoin and crypto prices have surged this year as the U.S. dollar index falls to year-to-date lows (with the Coinbase chief executive last week revealing an AI game-changer). The bitcoin price is trading around $60,000 per bitcoin, up from January lows of under $40,000, as traders bet a fresh injection of liquidity by the Federal Reserve will put the bitcoin and crypto market on the "cusp" of a major move. Now, as China gears up to drop a bitcoin price bombshell, fears are swirling the U.S. dollar is on "the verge of a total collapse," setting up the bitcoin price for "a critical tipping point."
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Bitcoin Mining Profitability Hits Record Lows, JPMorgan Report Says
Moby Media - The Street
The Wall Street bank noted that in August, bitcoin miners earned an average of $43,600 per exahash per second (EH/s) in daily block reward revenue, a stark contrast to the peak of $342,000 in November 2021. This sharp decline comes as a result of multiple factors, including rising mining difficulty, an increase in the network hashrate, and a decrease in the price of bitcoin.
/jlne.ws/47f1ihV
Florida tech and crypto boom flags as Andreessen Horowitz quietly shutters Miami outpost Anna J. Kaiser and Bloomberg
When Andreessen Horowitz opened an outpost in Miami Beach, the $43 billion venture capital giant bolstered the region's ambitions of becoming a tropical tech mecca.
/jlne.ws/4e7tEwM
Bitcoin Mining Profitability Is Stuck at Record Lows, JPMorgan Says
Will Canny - CoinDesk
Bitcoin {{BTC}} mining profitability is stuck at record lows, JPMorgan (JPM) said in a research report on Tuesday. "We estimate bitcoin miners earned an average of $43,600 per EH/s in daily block reward revenue in August, the lowest point on record," analysts Reginald Smith and Charles Pearce wrote. That compares with a peak value of $342,000 in November 2021, when the BTC price was $60,000 and the network hashrate was 161 EH/s.
/jlne.ws/4geEvqo
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| Politics | | An overview of politics as it relates to the financial markets | Trump Wants to 'Drill, Baby, Drill,' but Can He Cut Energy Prices? GOP nominee's anti-inflation pitch focuses on lower costs for gas and electricity, areas where a president has limited control
David Uberti and Jennifer Hiller - The Wall Street Journal
Donald Trump says he can rapidly cut Americans' energy costs by 50% or more, a welcome prospect for inflation-weary voters. It is easier said than done. The Republican presidential nominee says he will rely on a favorite campaign slogan to accomplish the feat: Drill, baby, drill. Trump says faster permitting, weaker environmental regulations and other measures will unleash more production of oil and natural gas and push down prices at the pump and on electricity bills.
/jlne.ws/4dQz3sh
Trump vows to halve energy costs in 12 months. Few see that happening.; Presidents have limited control over the global oil market, industry experts say, and any steep price drop could make it unprofitable for firms to "drill, baby, drill."
Garrett Haake and J.J. McCorvey - NBC News
"My goal will be to cut your energy costs in half within 12 months after taking office," former President Donald Trump said in a speech in Michigan last Thursday. "We can do that." Industry analysts doubt it. The Oval Office is equipped with few levers to influence energy prices, which are largely controlled by executives and policymakers across a range of oil-rich countries, experts say. What's more, a price drop as steep as Trump wants could make pumping oil and gas too unprofitable to bother with.
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North Sea oil producer warns windfall tax rise will hit investment at wrong time; Harbour Energy chief says sector will be vital for decades as Wintershall deal completes
Lukanyo Mnyanda - Financial Times
Harbour Energy's boss has hit out at the UK's move to raise windfall taxes on oil and gas producers, warning it had dealt a further blow to the country's attractiveness to investors in a sector she said would remain vital to the economy for decades to come. Linda Cook, a critic of the UK's energy profits levy when it was introduced by then chancellor Rishi Sunak in 2022, has largely avoided talking about the issue in recent months, even as industry peers attacked the Labour government for raising it and seeking to remove investment allowances for companies.
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Germany to Sell Down Commerzbank Stake After Share Rally; Stake is worth roughly EUR2.5 billion at current market price; Government hasn't specified how much it will sell or when
Steven Arons - Bloomberg
The German government plans to cut its stake in Commerzbank AG as it seizes on a recent share rally to initiate an exit from the lender it rescued over a decade ago. The country's finance agency, which manages the stake of about 16.5%, announced the move after market close on Tuesday. It didn't disclose how much it would sell or when. The government stake is worth roughly EUR2.5 billion.
The Vanishing Bull Case for Investing in France; Emmanuel Macron can't engineer a snap economic rebound.
Marcus Ashworth - Bloomberg
French President Emmanuel Macron's breaking the post-election deadlock with the coming appointment of a new prime minister will only solve the lesser of his two fundamental problems. He can't announce a snap economic rebound. Febrile politics, a runaway budget deficit, potential credit rating downgrades, unwind of the yen carry trade, a weak economy and worsening export prospects present a bleak picture for already-underperforming French assets.
/jlne.ws/4esUqQz
EU urged to overhaul EUR387bn farm subsidies regime; Report suggests basing Common Agricultural Policy payments on income not acreage and calls for curbing meat production
Alice Hancock - Financial Times
The EU should undertake a major overhaul of its EUR387bn Common Agricultural Policy to subsidise farmers based on their income rather than the size of their farms, according to a report commissioned by Brussels in response to violent farmers' protests. The recommendations were presented to European Commission president Ursula von der Leyen on Wednesday. They follow consultations among farmers, NGOs, consumer and food retailers that culminated in three marathon day-and-night negotiating sessions last week, underlining deeply divided opinions over the future of farming.
/jlne.ws/4e5VcT8
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| Regulation & Enforcement | | Stories about regulation and the law. | MAS issues 5-year prohibition order against ex-RHB representative for false trading
Chong Xin Wei - Business Times
THE Monetary Authority of Singapore (MAS) on Tuesday (Sep 3) issued a five-year prohibition order against a former representative of RHB Securities, following his conviction for false trading. Effective from Tuesday, Chong Yew Mun Alan is prohibited from taking part in the management, acting as a director, or becoming a substantial shareholder of any financial advisory firm under the Financial Advisers Act. He is also barred from performing any regulated activity, and from taking part in the management, acting as a director, or becoming a substantial shareholder of any capital markets services firm under the Securities and Futures Act.
/jlne.ws/3X6C28S
UK regulator to slash maximum fraud losses banks are forced to cover; Proposed payout limit expected to be cut from £415,000 to £85,000 after industry lobbying
George Parker, Martin Arnold, Akila Quinio and Michael O'Dwyer - Financial Times
UK regulators are set to dramatically scale back a new regime that would have forced banks and payment companies to reimburse fraud victims up to £415,000, after strong pressure from ministers and fintech firms. The new maximum fraud payout is now expected to be set at just £85,000, according to people briefed on the plan, amid fears the higher level could have seen criminals exploit the compensation system and potentially put smaller fintech firms out of business.
/jlne.ws/4dLPN3Z
China to launch anti-dumping probe into Canadian canola exports; Latest trade salvo follows Ottawa's decision last week to impose 100% tariffs on Chinese electric cars
Gloria Li, Thomas Hale and Demetri Sevastopulo - Financial Times
Beijing has said it will open a trade probe into canola imports from Canada and hit out at Ottawa's decision last week to raise tariffs on Chinese steel and electric vehicles. China's commerce ministry on Tuesday said Canada had "significantly" increased exports of the agricultural product and was "suspected of dumping", adding that domestic manufacturers had incurred losses as a result.
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Federal Court Orders Oregon Man to Pay Over $209 Million in Monetary Sanctions for Commodity Pool Ponzi Schemes; CFTC Also Recovers $18 Million Stolen from Court-Appointed Receiver
CFTC
The Commodity Futures Trading Commission today announced Judge Mary Rowland of the U.S. District Court for the Northern District of Illinois entered an order of final judgment against Sam Ikkurty of Oregon and Jafia, LLC, Ikkurty Capital, LLC d/b/a Rose City Income Fund I LP, Rose City Income Fund II, and Seneca Ventures, LLC imposing a judgment totaling $209,614,892. This order follows Judge Rowland's prior order granting summary judgment in favor of the CFTC on all counts of the CFTC's solicitation fraud and misappropriation complaint. [See CFTC Press Release No. 8931-24] The CFTC also recovered more than $18 million in digital assets that had been stolen from the court-appointed receiver.
/jlne.ws/4ebmvM0
SEC Charges Six Credit Rating Agencies with Significant Recordkeeping Failures; Firms admit to wrongdoing and agree to pay penalties totaling more than $49 million to settle SEC charges
SEC
The Securities and Exchange Commission today announced charges against six nationally recognized statistical rating organizations, or NRSROs, for significant failures by the firms and their personnel to maintain and preserve electronic communications. The firms admitted the facts set forth in their respective SEC orders; acknowledged that their conduct violated recordkeeping provisions of the federal securities laws; agreed to pay combined civil penalties of more than $49 million, as detailed below; and have begun implementing improvements to their compliance policies and procedures to address these violations.
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SEC Charges Crypto-Focused Advisory Firm Galois Capital for Custody Failures; Firm also misled investors about its redemption practices
SEC
The Securities and Exchange Commission today announced settled charges against Florida-based Galois Capital Management LLC, a former registered investment adviser for a private fund that primarily invested in crypto assets, for failing to comply with requirements related to the safeguarding of client assets, including crypto assets being offered and sold as securities. The Commission also found that Galois misled fund investors about the notice period required for redemptions. To settle the SEC's charges, Galois agreed to pay a civil penalty of $225,000, which will be distributed to its fund's harmed investors.
/jlne.ws/47foJYq
SEC Charges Creative Legal Fundings CEO Maria Dickerson with Operating Multimillion Dollar Ponzi Scheme that Targeted Filipino-American Community
SEC
The Securities and Exchange Commission today charged Maria Dulce Pino Dickerson and her companies Creative Legal Fundings in CA and The Ubiquity Group LLC with raising approximately $7 million from more than 130 investors through a fraudulent securities offering targeting members of the Filipino-American community across the United States.
/jlne.ws/4eaE2DX
SEC Charges Advisory Firm ClearPath with Custody Rule and Liability Disclaimer Violations
SEC
The Securities and Exchange Commission today announced settled charges against ClearPath Capital Partners LLC for failing to comply with requirements related to the safekeeping of client assets and for its use of impermissible liability disclaimers in its advisory and private fund agreements.
/jlne.ws/3AU25sE
SEC Charges Two South Florida Men and Related Entity with Fraud
SEC
Today, the Securities and Exchange Commission charged Miami-area residents Francisco Javier Malave Hernandez ("Malave") and Ricardo Javier Guerra Farias ("Guerra") and a company Malave controlled with defrauding investors who purchased approximately $5 million in promissory notes. Most of the investors are members of the Venezuelan-American community and this case is part of the Miami Regional Office's Fraud Against Minority Groups Initiative.
/jlne.ws/3XedzhP
SEC Charges Boca Raton, Florida Private Equity Advisers with Marketing Rule and Registration Violations
SEC
The Securities and Exchange Commission today charged Black Dragon Capital, LLC ("Black Dragon Capital"), Black Dragon Capital Investment Management, LLC a/k/a Black Dragon Capital Investment Management, Inc. ("Black Dragon CIM") (collectively, "Black Dragon Entities"), advisers to private funds, and their CEO, Louis Hernandez, Jr. ("Hernandez"), alleging they violated the Investment Advisers Act of 1940 ("Advisers Act").
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ASIC cancels AFS licence of retail OTC derivative issuer FXOpen AU
ASIC
ASIC has cancelled the Australian financial services (AFS) licence of contracts for difference (CFDs) and foreign exchange contracts issuer, FXOpen AU Pty Ltd (FXOpen AU), after an investigation identified serious concerns about the inadequacy of its human resources to provide financial services and to carry out supervisory arrangements. ASIC's investigation also found that FXOpen AU failed to comply with its obligations as an AFS licensee, including:
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ASIC wins against Rent4Keeps for overcharging vulnerable consumers on essential household goods
ASIC
The Federal Court today found the business model used by Rent4Keeps to sell everyday goods, such as furniture, electronics and whitegoods breached the Credit Act. Between 1 April and 30 June 2019, Rent4Keeps' largest franchise, Darranda Pty Ltd, entered into 516 'lease' agreements with customers, often from low socioeconomic backgrounds, who paid significantly more for items than they lawfully should have.
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Speech by FMA Chief Executive Samantha Barrass to Financial Services Council 2024 Conference
FMA
This year's conference theme is "consumer resilience and prosperity". Maintaining resilience through these times while also taking long-term decisions to secure future prosperity is essential to the financial wellbeing of all New Zealanders. Consumer Resilience and Prosperity is an important theme for the FMA, and for me. That is because, once responsibility for the CCCFA is transferred to us, we will have a role in overseeing the financial products that touch most New Zealanders' lives.
/jlne.ws/3MxoqOZ
FMA cancels Integrity Advisers Insurance Limited's Financial Advice Provider licence
FMA
The Financial Markets Authority (FMA) - Te Mana Tatai Hokohoko - has cancelled Integrity Advisers Insurance Limited's (Integrity) Financial Advice Provider (FAP) licence for engaging in serious misconduct. Integrity is a Christchurch-based financial service provider that held a full FAP licence, providing financial advice to approximately 500 retail customers, many of whom are from the Filipino community. Integrity's sole director and shareholder is Mr Yuriy Bazhak who was a financial adviser at Integrity.
/jlne.ws/47gKxDa
FCA sets out steps to improve access to bank accounts; In a new report, the FCA encourages account providers to do more to support those who want a bank account but don't have one.
FCA
The FCA has recognised that banks, building societies and payment firms are trying to support customers to access accounts and is encouraging them to build on examples of existing good practice, such as working with homeless charities to tailor their support to the needs of customers in vulnerable circumstances.
/jlne.ws/4cUbSw7
SFC commences legal proceedings against SoftMedx Healthcare Limited, its former directors and de facto directors
SFC
The Securities and Futures Commission (SFC) has commenced legal proceedings under section 214 of the Securities and Futures Ordinance (SFO) in the Court of First Instance to seek disqualification orders against seven former directors and two former de facto directors of SoftMedx Healthcare Limited (SoftMedx) for allegedly breaching their fiduciary duties (Notes 1 and 2). The two former de facto directors are Mr Cho Kwai Chee and Mr Ronnie Hui Ka Wah. This is the second set of SFC's legal proceedings against Cho under section 214 of the SFO (Note 3).
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Risks Too Big for Insurers Just Fed a $200 Billion Market Boom; Captive insurance is becoming the last resort for many firms; Aon executive says trend is pronounced in oil and mining
Natasha White - Bloomberg
As the market for in-house insurance surpasses a record $200 billion, the underlying reasons for that boom show how a hotter, less stable planet is redrawing the risk map for corporations. Captive insurance, where companies create their own coverage vehicles, is on the rise, according to insurance broker Aon Plc. Companies are using it to work around restrictions or to avoid prohibitively high prices imposed by external insurers. And it's a development that's particularly pronounced in sectors tied to climate change.
/jlne.ws/3yUmcq1
Unwinding of VIX Trade Caused 'Massive Freakout,' Nomura Says; Facilitators of Friday VIX trade suddenly had to cover risk; VVIX index spiked in an abnormal move relative to the S&P 500
Jan-Patrick Barnert - Bloomberg
While equity volatility is rising once again, this spike is different from the one a month ago. It all started with a large Cboe Volatility Index options trade put on last week, and the impact of its hedging was another proof that the space gets "broken" when dealers become vulnerable to sharp moves in the gauge, according to Charlie McElligott, the managing director of cross-asset strategy at Nomura Securities International.
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Mystery Option Buyer Nets Fast $12 Million Gain on Stock Slide
David Marino - Bloomberg
The sense of calm in the US stock market was disrupted Tuesday as the S&P 500 Index plunged more than 2% and the VIX exploded higher. That's rewarded a late-Friday options buyer with some $12 million in paper gains. The spike in volatility came as the S&P 500 index was dragged down by a selloff in technology stocks with AI giant Nvidia Corp.'s market capitalization dropping by the equivalent of Chevron Corp. Late Friday, an investor or investors spent almost $9 million buying 350,000 call spreads on the Cboe Volatility Index, or VIX, to protect against a September jump in the gauge, which measures volatility on S&P 500 options.
/jlne.ws/3ZavzME
Nvidia Suffers Record $279 Billion Rout as AI Worry Sinks Stocks
Jeran Wittenstein and Ryan Vlastelica - Bloomberg
Four weeks after US stocks buckled amid a global flight from risk assets, chipmakers touched off another bout of equities selling when a pair of industry analysts rekindled worries that the mania surrounding artificial intelligence had gone too far.
/jlne.ws/4cYlEgp
Louis Dreyfus Gets FIRB Approval for Namoi Cotton Takeover Bid; Trader says Foreign Investment Review Board has no objections; Namoi Cotton has recommended rival offer from Olam Agri
Keira Wright - Bloomberg
Louis Dreyfus Co. says it got approval from Australia's Foreign Investment Review Board for its proposed takeover of Namoi Cotton Ltd. after the crop trader agreed to measures that would allay competition concerns. Written approval was provided by the review board, which has no objections to the takeover, Louis Dreyfus Managing Director for Australia Tony Geitz said in a statement on Wednesday. The offer for Namoi Cotton, which closes on Sept. 13, is now unconditional, according to Geitz.
/jlne.ws/3ZceLF3
Trafigura Struck $400 Million Cash-for-Iron Ore Deal With MinRes; Prepayment comes amid trader's recent expansion in iron ore; Australian miner is battling lower iron ore and lithium prices
Jack Farchy, Archie Hunter, and Paul-Alain Hunt - Bloomberg
Trafigura Group has struck a $400 million prepayment deal for iron ore with Mineral Resources Ltd., as the Australian miner focuses on preserving cash amid a downturn in its two main commodities. The prepayment was reported by Mineral Resources in July, but the Perth-based mining company did not say who the buyer was and rebuffed analysts' questions for more details about the deal.
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Nikkei 225 to add NRI and Muji owner in semiannual review; Replacement to remove Nippon Paper Industries and DIC, effective from Oct. 1
Nikkei Asia
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Goldman Sees Delay to Korean Inclusion in FTSE Bond Index
Greg Ritchie - Bloomberg
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Traders Weigh 'Buy the Dip' Opportunities Amid Stocks Selloff
Youkyung Lee and Winnie Hsu - Bloomberg
/jlne.ws/47glX51
Cargill, America's Largest Private Company, Faces Leaner Times
Javier Blas - Bloomberg Opinion
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Europe's failure to keep pace on corporate bonds is baked in; Part of the problem is that investors on the continent just aren't interested in small deals
Katie Martin - Financial Times
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Amazon and Bezos fund's influence over carbon credit market raises alarm; Experts warn of ties between Big Tech and philanthropic bodies with groups that set corporate Kenza Bryan - Financial Times
The influence of Amazon and Jeff Bezos's $10bn charitable group over the carbon credit market is raising alarm, in a growing battle over how Big Tech and corporate groups seek to achieve tough climate goals. The Bezos Earth Fund is among the largest funders of the Science Based Targets initiative, a globally-renowned body relied upon by groups such as Apple and H&M to set voluntary standards and strict limits on the use of carbon credits to offset emissions.
/jlne.ws/4dQuUoa
UK secures 131 clean energy projects in state auction; Minister says new investment a 'step forward' for industry after no bids in last year's round
Rachel Millard - Financial Times
The UK's aim to develop cleaner energy has taken a step forward after a record 131 clean energy projects won state subsidy contracts in this year's auction round. The projects, announced on Tuesday, could provide electricity to the equivalent of 11mn homes, supporting the sector after a botched auction round last year in which no offshore wind developers bid.
/jlne.ws/3XbKjs3
EU urged to overhaul EUR387bn farm subsidies regime; Report suggests basing Common Agricultural Policy payments on income not acreage and calls for curbing meat production
Alice Hancock - Financial Times
The EU should undertake a major overhaul of its EUR387bn Common Agricultural Policy to subsidise farmers based on their income rather than the size of their farms, according to a report commissioned by Brussels in response to violent farmers' protests. The recommendations were presented to European Commission president Ursula von der Leyen on Wednesday. They follow consultations among farmers, NGOs, consumer and food retailers that culminated in three marathon day-and-night negotiating sessions last week, underlining deeply divided opinions over the future of farming.
/jlne.ws/4e5VcT8
Abu Dhabi to invest billions in ExxonMobil's Texas hydrogen project; Plan for world's largest low-emission plant of its kind in limbo over push for US subsidies
Malcolm Moore and Jamie Smyth - Financial Times
The crown prince of Abu Dhabi has thrown his weight behind a huge but uncertain hydrogen project in Texas, offering to buy 35 per cent of ExxonMobil's plant in Baytown, Houston. Sheikh Khaled bin Mohammed bin Zayed al-Nahyan, the son of the ruler of the United Arab Emirates, took part in the signing of a "multibillion-dollar" deal on Wednesday between Adnoc, Abu Dhabi's state oil company, and Exxon.
/jlne.ws/3zdyx8A
China Just Had Its Hottest Summer, But Heat Threat Isn't Over; Average temperature highest in figures going back to 1961; Rainfall also at record high, causing flooding and landslides
Bloomberg News
China just sweltered through its hottest summer on record - damaging crops from corn to soybeans and pressuring the power grid - but the risks from the extreme heat aren't over yet. The average temperature between June 1 and Aug. 31 was 22.3C (72.1F), the highest since China began compiling the data in 1961, the National Climate Center said in a statement on Tuesday. Heat waves arrived earlier than usual this year, and more than a fifth of China's cities and counties saw the mercury rise above 40C.
/jlne.ws/4dLPnL5
Study: Insurers face $151bn annual loses from natural disasters; Urban expansion, climate change, and increasing frequency of extreme weather events drive average annual natural catastrophe loses to new high, report finds
Stuart Stone - Business Green
A combination of rapid urban expansion, increasing climate impacts and variability, and the growing frequency of extreme weather events has driven insurers' average annual losses from global natural catastrophes to a new high of $151bn. That is the worrying headline conclusion from global data analytics provider Verisk's 2024 Global Modeled Catastrophe Losses Report, which also found the average growth in insurers risk exposure is set to reach 7.2 per cent over the past five years.
/jlne.ws/3Tgmlux
Coors Beer Maker Joins Ford, Lowe's in Diversity Retreat; Company no longer tying executive pay to representation; Activist Starbuck said he was preparing attack against brewer
Jeff Green - Bloomberg
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EU manages record number of responses to extreme weather
Kate Abnett - Reuters
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'Dangerously hot' weather to roast US west as brutal summer continues; California, Nevada and Arizona swelter in what could be the most intense heatwave of an already blazing season
Guardian staff
/jlne.ws/4dOWthM
Netflix Wants to Shrink Your Favorite TV Show's Carbon Footprint
Bloomberg
/jlne.ws/4dUFj2s
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Amber Wright, R.J. O'Brien Global Head of Fixed Income, to Assume Additional Role of Head of EMEA Sales
R.J. O'Brien & Associates
Chicago-based R.J. O'Brien & Associates (RJO), the oldest independent futures brokerage and clearing firm in the United States, today announced the promotion of Amber Wright, Managing Director and Global Head of Fixed Income, to the additional role of Head of EMEA Sales. Along with her current responsibilities for the firm's interest rate initiatives globally, Wright has assumed leadership of sales in the firm's Europe, Middle East & Africa (EMEA) region. Based in Dubai after serving for several years out of RJO's London office, Wright is overseeing brokers and recruiting new sales professionals for the firm's London, Dubai and Paris offices. She reports to RJO President and Chief Sales Officer Daniel Staniford.
/jlne.ws/4dLIaun
Citadel equity trader returns to Citi after four years; Incoming individual has previously worked at Citadel and BlackRock.
Claudia Preece - The Trade
Vincent Hall has joined Citi as an equity trader following two years at Citadel where he served in the same role. He returns to Citi after four years, having previously worked at the firm as associate vice president in emerging markets equity trading. Elsewhere in his career, Hall has also worked at BlackRock as an associate.
/jlne.ws/3ZcGe9D
Exclusive-Chinese fund manager asks staff to return excess pay from past five years, sources say
Julie Zhu and Selena Li - Reuters
A top 10 Chinese fund manager has asked senior executives to return pay received over the past five years that exceeds a new cap, to tally with a government initiative promoting economic equality, said two people with direct knowledge of the matter. China Merchants Fund Management (China Merchants FM) wants the executives to repay income beyond a 3 million yuan ($421,330) limit imposed this year for each year from 2019 to 2023, the people said.
/jlne.ws/3XuIXdv
Hedge Fund BlueCrest Starts FX Platform to Tap Buoyant Market; BlueX adds to FX industry's growing number of trade platforms; It operates FX cash, non-deliverable forwards, precious metals
Alice Atkins - Bloomberg
BlueCrest Capital Management has launched a new currency trading platform called BlueX, joining a market that has rapidly expanded in recent years. The hedge fund, founded by Michael Platt, one of Britain's richest people, has been developing the technology for years and the first trade was executed on Aug. 15 following regulatory approval from the Jersey Financial Services Commission, according to a statement released on Wednesday.
/jlne.ws/4gnenKi
Star manager Rob Arnott launches ETF to buy up index 'rejects'; Smart beta pioneer and his firm Research Affiliates bet on long-term reversion to the mean
Will Schmitt - Financial Times
Companies kicked out of a major index, whether for poor performance or lacklustre growth, rarely tout their exclusion. But for smart beta pioneer Rob Arnott, a deletion is far from a disaster - it is an opportunity. Arnott and his Research Affiliates firm are making their first foray into the world of exchange traded funds with an ETF that will invest in companies dropped from big indices such as the S&P 500 and the Russell 1000.
/jlne.ws/3ThSh1T
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | How Air Conditioning Took Over the American Office; Before AC, US office workers relied on building design features to adapt to high temperatures. But the promise of boosted productivity created a different kind of workplace.
David Dudley - Bloomberg
When it opened in 1922, Detroit's new nine-story police headquarters, designed by Albert Kahn, boasted reinforced concrete construction and the latest high-tech amenity for municipal workers: air conditioning. Alas, the building's early cooling system was no match for the deadly heat wave that roared through the Midwest US in July 1936, setting a string of records that still stand. During that long stretch of 100-plus-degree highs, which claimed more than 300 deaths in Detroit, police officers and staffers in the Renaissance Revival structure suffered along with everyone else (especially after the building's top-floor radiators were accidentally turned on). "The only result ever attained by putting on the cooling system has been to blow soot out of the apertures and onto the faces of everyone in the building," the Detroit News reported.
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Bulk sales surge on back of Tiktok and Instagram Gen Z wellness shopping
Laura McGuire - Yahoo Finance
Bulk said sales across its range of protein shakes, creatine and products for skin and nails were up 94 per cent, as the company ramps up its presence on Tiktok to attract wellness obsessed Gen Z shoppers. The protein powder company, which has previously been promoted by the likes of heavyweight champion Anthony Joshua, reported a 30 per cent rise in sales last year to £123.1m.
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A Growing Community Is Helping Miami's Music and Wellness Scenes Intersect; There's another side to the Magic City nightlife, where folks are trying to live a more grounded and peaceful life.
Christian Perez - Miami New Times
Over the decades, Miami has built a solid party-hard reputation. The city often serves the destination girls' trips that will 100 percent ruin friendships or a poolside playground for the bachelors with money to spend on overpriced bottle service and hard drugs. But there's another side to the Magic City nightlife, where folks are trying to live a more grounded and peaceful life without sacrificing the tiki-tiki vibes.
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | China Targets EU Dairy Just as Its Own Milk Industry Flounders; Overproduction and slowing economy push prices into tailspin; Exports have surged as domestic farmers struggle with surplus
Hallie Gu - Bloomberg
China's anti-subsidy probe of dairy imports from the European Union comes at a time when the local industry is on its knees. Limiting shipments from the EU could relieve some pressure on farmers, but the quantities targeted are small and domestic conditions have been worsening for quite a while. The market is grappling with excess production capacity built up over years, and a slump in demand due to the slowing economy that's having an outsized impact on pricier foods.
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Taiwan Stocks Hit By Record Foreign Outflow as AI Trade Sours
Charlotte Yang - Bloomberg
Foreign investors pulled out of Taiwan's technology-heavy stock market in record numbers after renewed concerns about overheating in the artificial intelligence sector fueled a global rout. Overseas investors sold NT$100.8 billion ($3.1 billion) of Taiwanese shares on a net basis on Wednesday, a record daily outflow according to Bloomberg-compiled data that started in 2000.
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Foreign Investors Scoop Up $1 Billion of Korean Bonds in One Day; Net purchase amount is the biggest in a session since November; Net inflow streak of 14 days is the longest in three months
Hooyeon Kim - Bloomberg
Foreign inflows into South Korean bonds surged on Tuesday, with net buying topping $1 billion, the most since November, according to the Financial Supervisory Service. Offshore investors have already net purchased the nation's debt for 14 straight days, marking the longest streak since May. The inflows are likely due to expectations for the won to strengthen further, along with potential that the nation's bonds will be added to FTSE Russell's World Government Bond Index, while in the backdrop, rate cut bets increase the allure of emerging Asian assets in general, according to DB Financial Investment.
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China Weighs Cutting Mortgage Rates in Two Steps to Shield Banks
Bloomberg News
China is considering cutting interest rates on as much as $5.3 trillion of mortgages in two steps to lower borrowing costs for millions of families while mitigating the profit squeeze on its banking system. Financial regulators have proposed reducing rates on outstanding mortgages nationwide by a total of about 80 basis points, part of a package that includes an accelerated timeline for when mortgages become eligible for refinancing, according to people familiar with the matter. The first cut may come in the next few weeks while the second move would take effect at the beginning of next year, said the people, asking not to be identified discussing a private matter.
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