| April 10, 2020 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
By John Lothian & JLN Staff
Yesterday I finally was able to fill out an application for the Payroll Protection Plan through the bank that holds my commercial accounts. Through the program, I was able to apply for a loan/grant of 2.5 times my average monthly payroll, with some subtractions. This amount is meant to pay certain allowed expenses for eight weeks.
My motivation to participate in the program was simply to protect the jobs of my employees. The outbreak of the coronavirus has introduced too many unknowns into our normal business operations. While we have always been creative and successful in the past when facing economic challenges over the last 17 years, this virus outbreak had too many ambiguous externalities to be able to confidently project necessary annual revenues. So I applied to the program and hope for the best. I did not want the price of any vanity or pride on my part to be a lost job for one or more of my employees.
I truly value every member of the John Lothian News team. And I believe the role they play for you, our readers, is as important as ever because of the price related and non-price related risks presented by the coronavirus outbreak. During this outbreak, I have received countless emails thanking me for the newsletter. As people are working from home, they are removed from their normal information sources in the office. Thus, the work of John Lothian News and its staff becomes more important.
Besides help from our bank and the Small Business Administration and the CARES Act, you can support this newsletter by being a paid subscriber. Every little bit of financial support helps us keep this news operation running, as many newspapers across the nation are on the brink of collapse because of the dramatic fall in advertising revenue. The Chicago Tribune is slashing salaries by 2 to 10 percent because of a sharp drop in print advertising.
I want to thank all of our paid readers and our loyal sponsors, who continue to value the service we provide and the role we play in the industry. Thank you! You are all greatly appreciated! ~JJL
Congratulations to Craig Donohue, who was re-elected as executive chairman of the OCC.
Congratulations to CME director Elizabeth Cook on being named to the Crain's Chicago Business Notable Women Directors over 50 list
AMT Futures Limited ("AMTF") announced the appointment of James Proudlock as managing director, to take over from Julian Rigby, who is to retire at the end of June after 30 years running the company. Proudlock has 30 years' experience in commodities and futures brokerage at senior levels, including more than a decade with JP Morgan as a managing director, and also served as deputy chief executive of LME Clear, head of market development at the LME and also as a member of the management committee at the HKEX. AMTF is a wholly owned subsidiary of Amalgamated Metal Corporation PLC.
Have a safe and healthy weekend. For those who celebrate Easter, on Sunday have a Happy Easter!~JJL
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A picture of Los Angeles without smog due to everyone staying at home:
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The Spread: Far From Business As Usual
JohnLothianNews.com
This week on The Spread - Eurex adds new options on an MSCI index, Craig Donohue is re-elected chairman of the OCC's board of directors, phishing scammers use fake COVID-19 alerts, and more.
Watch the video »
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Loh Boon Chye: Singapore Exchange Expands as Asia Market Grows
JohnLothianNews.com
Since FIA Boca didn't take place this March, John Lothian News posed our questions to Loh Boon Chye, the CEO of SGX, from afar, and he responded in this video shot in mid-March. Even in a slow growth environment in the midst of COVID-19, he believes the Asian sector is poised to grow faster than the rest of the world, and SGX has been building a multi-asset exchange over the years to take part in that growth. The exchange reorganized its business in July 2019 into four business and sales units: equities; the newly-formed fixed income, currency and commodities unit; and the data connectivity and index business. Singapore is Asia's largest foreign exchange trading center, and SGX is seeing a merging of liquidity between its FX futures suite and over-the-counter FX. Loh also talked about the exchange's alliances with the Tel Aviv Stock Exchange and Nasdaq, and the expansion of its index capability and presence in the U.S.
Watch the video »
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The burden of the coronavirus pandemic must be shared fairly; Our religious traditions tell us to love our neighbours as ourselves
The editorial board - FT
This week, the Jewish Passover and Easter come close together. They are central festivals of these closely related religious traditions. Both celebrate deliverance — the Passover from oppression, and Easter from death. At a time when all humanity is threatened by a tiny agent of death, all seek deliverance from the oppression of the virus and the fear of the end. Whether we are believers or not, nothing could remind us more powerfully than the pandemic of humanity's eternal search for meaning in the realities of life and death.
/on.ft.com/2wqDHOa
*****Love your neighbor as yourself. It is as easy as that.~JJL
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Viruses and volatility — how uncertainty impacts on our health; Trader turned neuroscientist John Coates on why economic crises are also medical ones
John Coates - FT
As coronavirus infection rates peak in many countries, the markets rally. There is a nagging worry that a second wave of infections might occur once lockdowns are lifted or summer passes. But for anyone immersed in the financial markets there should be a further concern. Volatility created by the pandemic could itself cause a second wave of health problems. Volatility can make you sick, just as a virus can.
/on.ft.com/3a4Sa0h
*****Volatility has made me sick before. The first sign is bulging eyes. The last is a need to change one's undergarments.~JJL
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SIFMA Notes the Passing of Industry Leader Dale Horowitz
SIFMA
SIFMA notes the passing of industry leader Gedale "Dale" B. Horowitz. Among his many accomplishments, Dale founded SIFMA's predecessor organization, the Public Securities Association (PSA) in 1967. He also served as Chairman of the Municipal Securities Rulemaking Board (MSRB) and was a long-time member of the Treasury Borrowing Advisory Committee (TBAC).
/bit.ly/2VmHhBD
***** Condolences to family, friends and colleagues of Mr. Horowitz.~JJL
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US citizens in Lebanon decline repatriation offer, saying it's "safer" in Beirut
Tamara Qiblawi - CNN
Carly Fuglei was with a group of Danish friends in Beirut last month when she first considered moving back to the United States. They were preparing to leave Lebanon amid fears of a major coronavirus outbreak there, and tried to convince her to do the same.
/cnn.it/2UW177I
*****That is a major dis - safer in Beirut.~JJL
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Ontario Businesses Are Taping Debit Machines To Hockey Sticks & It's So Canadian (PHOTOS)
Madeline Forsyth - Narcity
Across Ontario, people are finding new ways to adapt to physical distancing and isolation lifestyle. Some businesses have come up with a creative way to keep serving customers from a distance, and it's peak Canadian. It turns out hockey equipment doesn't just come in handy on the ice. Ontario's hockey stick payment terminals will keep you safe and patriotic.
/bit.ly/34sLgAo
*****No cash, only checks.~JJL
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A zoo has been trying to get two pandas to mate for 10 years. When coronavirus shut the zoo down, the pandas finally did
Amanda Jackson - CNN Travel
It seems all these giant pandas needed was a little privacy.
Parenthood might be around the corner for Ying Ying and Le Le, which are longtime residents of Ocean Park in Hong Kong. Zoo officials announced Monday that after 10 years of attempts at natural mating, and "through trial and learning," the two have finally succeeded.
/cnn.it/39XF5pe
*****Finally some privacy.~JJL
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CryptoMarketsWiki Coin of the Week: Bitcoin Cash (BCH)
The Bitcoin Cash protocol underwent a process called "halving" this week, a process in which the protocol reduced its block rewards - the reward that those providing computer power to its blockchain network receive - by half. The reward went from 12.5 BCH per block mined to 6.25 BCH. Although this process rendered many of those involved with mining BCH unable to profit from it, mining difficulty for the network overall is expected to decrease as more miners leave the network, significantly improving the odds of profitability for those still on the network. In theory, at least.
bit.ly/2LBm97H
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Thursday's Top Three
Our top story Thursday was JLN's Buck Haworth - Open Outcry Traders History Project - Part One, the first of two video interviews of the longtime CPA, trader, and technology executive. Second was Bloomberg's Fintech Company Survived Ransomware Attack Without Paying Ransom, about the London-based banking software maker Finastra. Third was Wanted urgently: People who know a half century-old computer language so states can process unemployment claims, from CNN.
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MarketsWiki Stats
175,404,785 pages viewed; 24,096 pages; 223,795 edits
MarketsWiki Statistics
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| Lead Stories | Small Businesses Wait for Cash as Disaster Loan Program Unravels; Owners were supposed to be able to get up to $2 million. Now they're being told the cap is $15,000 — if they can get any answers at all.
Stacy Cowley - WSJ
Flooded by requests for help like never before, a federal disaster loan program that was supposed to deliver emergency relief to small businesses in just three days has run low on funding and nearly frozen up entirely. Now, business owners who applied are desperate for cash and answers about what aid, if any, they are going to receive.
/nyti.ms/34qWB3Z
Global oil output cuts held hostage to standoff
Rania El Gamal, Vladimir Soldatkin - Reuters
Oil producers in the OPEC+ group, led by Saudi Arabia and Russia, were expected to pressure Mexico on Friday to seal an accord for a collective cut in output of 10 million barrels per day, before asking other nations for a further 5 million bpd of cuts.
/reut.rs/34x28WT
'Where No Fed Has Gone': Wall Street Reacts to Muni-Debt Program
Danielle Moran and Amanda Albright - Bloomberg
The Federal Reserve on Thursday said it will lend as much as $500 billion to states and the biggest counties and cities, making its first direct move ever into the $3.9 trillion municipal-debt market to help limit the financial fallout of the coronavirus pandemic.
/bloom.bg/3c382kY
Virus Throws Millions More Out of Work, and Washington Struggles to Keep Pace; Federal efforts to keep businesses operating and workers employed have so far failed to stop the bleeding as the coronavirus tears through the economy in devastating ways.
Jim Tankersley - WSJ
When the federal government began rushing trillions of dollars of assistance to Americans crushed by the coronavirus pandemic, the hope was that some of the aid would allow businesses to keep workers on the payroll and cushion employees against job losses.
/nyti.ms/3a0xgz2
SEC Settles With Traders Accused of Hacking Its Edgar Database
Matt Robinson - Bloomberg
The U.S. Securities and Exchange Commission agreed to settle fraud claims against two men accused of profiting from an embarrassing episode for the regulator: the hacking of its Edgar database of corporate filings.
/bloom.bg/2Roovsc
Carbon market takes 'kick in the ribs' from coronavirus; Price of pollution credits fell more than a third in early March before rebounding
Leslie Hook - FT
Demand for European carbon allowances plummeted during the coronavirus sell-off last month, providing the first significant test for a new market mechanism designed to curb oversupply.
/on.ft.com/34pLWqo
Record Bankruptcies Predicted in Next Year as Unemployment Soars
Anita Sharpe - Bloomberg
Personal filings could reach 1 million, Fed economist says; 'The economy could deteriorate more than what we assume'
Bankruptcies related to Covid-19 shutdowns will set records in the next 12 months, according to Edward Altman, the professor emeritus at New York University's Stern School of Business who developed a widely used method called the Z-score for predicting business failures.
/bloom.bg/2Vhtc8v
It's Getting a Lot Harder to Ship Food Around the World
Jen Skerritt, Leslie Patton, and Emele Onu - Bloomberg
Container issues, limited port hours snarl shipments; 'The outbound capacity is really starting to diminish'
The port backups that have paralyzed food shipments around the world for weeks aren't getting much better. In fact, in some places, they're getting worse. In the Philippines, officials at a port that's a key entry point for rice said earlier this week the terminal was at risk of shutting as thousands of shipping containers pile up because lockdown measures are making them harder to clear. Meanwhile, curfews in Guatemala and Honduras, known for their specialty coffees, are limiting operating hours at ports and slowing shipments. And in parts of Africa, which is heavily dependent on food imports, there aren't enough workers showing up to help unload cargoes.
/bloom.bg/2Xm1F8x
Opec and Russia reach deal to cut oil production by 10m barrels a day; Prices fall as traders fear reductions will fail to offset biggest demand collapse in history
David Sheppard, Anjli Raval and Derek Brower and Henry Foy - FT
Opec and Russia have agreed to make deep cuts to oil production, ending a weeks-long market-share war that put further pressure on prices reeling from the biggest demand collapse in history.
/on.ft.com/2yPYT12
Small-Business Loans Face Delays Even as Coronavirus Program Expands; First applicants are still waiting for funds, fueling anxiety among business owners
Yuka Hayashi - WSJ
Despite the Trump administration's promise to deliver aid quickly, small-business owners who have applied for federally guaranteed loans to keep them afloat during the coronavirus pandemic are still largely waiting for the money, according to business advocates and banking industry officials. The $350 billion Paycheck Protection Program opened a week ago with loans to companies with 500 or fewer employees and expands Friday to include independent contractors and self-employed individuals.
/on.wsj.com/3a2GV8d
The Fed's 'Main Street' Mistake; The central bank's terms favor Wall Street and take new credit risks.
The Editorial Board - WSJ
The essential facts of the coronavirus economic disaster are these: Federal and state governments have shut down most American commerce, robbing tens of thousands of successful companies of revenue through no fault of their own. Mass layoffs are already underway, with 6.6 million new jobless claims in the week that ended April 4, and cascading bankruptcies loom.
/on.wsj.com/2RrVLyQ
Bridgewater's Big Options Bet Helps Limit Losses; A bet that would pay out if the stock market declined before late March was worth billions
Juliet Chung and Gunjan Banerji - WSJ
A significant options bet by Bridgewater Associates that would pay out if the stock market declined before late March has made billions for the world's largest hedge-fund firm, helping to offset broader losses last quarter.
/on.wsj.com/2yLaNsR
Farmers Dump Milk, Break Eggs as Coronavirus Restaurant Closings Destroy Demand; Producers are throttling back as the virus erases sales to restaurants, hotels and cafeterias; 'It was heart-wrenching'
Jesse Newman and Jacob Bunge -WSJ
It was still dark outside at four o'clock on a recent morning when a tanker truck poured 6,000 gallons of milk into a manure pit on Nancy Mueller's Wisconsin dairy farm. The milk, collected from Mueller Dairy Farm's 1,000 cows, should have been hauled to dairy processors across the state for bottling or to be turned into cheese. But the coronavirus pandemic is disrupting all that, closing restaurants and schools that buy the nation's dairy products—and forcing hard choices for farmers like Mrs. Mueller.
/on.wsj.com/2VjId9O
Morgan Stanley CEO Recovered From Coronavirus; James Gorman is most senior Wall Street executive known to have been infected with Covid-19
Liz Hoffman - WSJ
Morgan Stanley Chief Executive James Gorman said Thursday he had recovered from the new coronavirus, the most senior Wall Street executive known to have been infected. The CEO of the country's sixth-biggest bank told employees he was doing well in a video posted to the company's internal site.
/on.wsj.com/3c7mjNB
Nuveen improperly tried to destroy rival, judge concludes; The Chicago-based bond market powerhouse "was not simply attempting to achieve a competitive edge. . . .It meant to use the leverage resulting from its size in the market to destroy Preston Hollow."
Bloomberg
U.S. bond-market powerhouse Nuveen LLC wrongfully interfered with the business of Preston Hollow Capital LLC by organizing an intimidation campaign to coerce broker-dealers from doing business with its smaller rival, a judge ruled.
/bit.ly/2VhDaqr
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | OCC Re-Elects Executive Chairman, Member and Public Directors at 2020 Stockholder Meeting
OCC
OCC, the world's largest equity derivatives clearing organization, today announced the re-election of Craig S. Donohue as Executive Chairman of the Board of Directors, along with the election of three Class I Member Directors and one Class II Public Director. The vote occurred during OCC's annual stockholder meeting on April 7.
/bit.ly/2XtPs1k
SOFR Usage Expands Despite Crisis
Owain Johnson - Open Markets
Open interest in the Secured Overnight Financing Rate hit 612,000 contracts in March; Surprise rate cuts and easing by the Federal Reserve contributed to this increase
The unprecedented turmoil that COVID-19 has brought to financial markets has not slowed down activity in the new U.S. interest rate benchmark, the Secured Overnight Financing Rate (SOFR).
/bit.ly/34nKbdr
NYSE opened its coronavirus-shut doors to facilitate IPO
Thornton McEnery - NY Post
The New York Stock Exchange quietly used its trading floor to take a company public late last month — days after it had shuttered the famous pit because of a coronavirus outbreak, The Post has learned. The Big Board took a group of people onto the trading floor of its historic building at 11 Wall St. in Lower Manhattan on March 31 in order to list Chicago-based RiverNorth Capital Management, a newly formed mutual fund specializing in municipal bonds, sources said.
/bit.ly/2xlHKf7
Equity Index Highlights - April 2020 edition
Eurex
March was, given the highly volatile markets, of course, bursting with hedging activity on Eurex. However, rather than discussing volumes, I'd like to focus on the performance of the Eurex market infrastructure in this briefing
/bit.ly/3b0Upmo
Nasdaq Announces End-of-Month Open Short Interest Positions in Nasdaq Stocks as of Settlement Date March 31, 2020
Nasdaq
At the end of the settlement date of March 31, 2020, short interest in 2,434 Nasdaq Global MarketSM securities totaled 7,695,739,356 shares compared with 8,344,615,576 shares in 2,426 Global Market issues reported for the prior settlement date of March 13, 2020. The end-of-March short interest represents 1.89 days average daily Nasdaq Global Market share volume for the reporting period, compared with 2.49 days for the prior reporting period.
/bit.ly/2VjCH76
JPX response to spread of novel coronavirus
JPX
In regard to the spread of the novel coronavirus, Japan Exchange Group (JPX) understands the need to fulfil its duty as public infrastructure by ensuring continued smooth operation of the market. For this reason, JPX has responded by establishing a BCP (Business Continuity Plan) Emergency Headquarters headed by Group CEO Kiyota Akira and implementing the following measures.
/bit.ly/3dHQpsO
Nadex Launches Dormant Account Bonus Program
MondoVisione
Pursuant to Section 5c(c)(1) of the Commodity Exchange Act, as amended ("Act"), and section §40.6(a) of the regulations promulgated by the Commodity Futures Trading Commission (the "Commission") under the Act (the "Regulations"), North American Derivatives Exchange, Inc. ("Nadex", the "Exchange") submitted to the Commission on April 9, 2020 its plans to launch a reactivation incentive program, which would credit eligible participants with dormant accounts (no trading activity for 12 consecutive months) a bonus equal to 10% of the participant's reactivation deposit, as defined in the Terms and Conditions, up to $100. In order to qualify, the reactivation deposit must occur before any trading activity takes place. Full Terms and Conditions of the Program were also submitted to the Commission. Pursuant to the 10-day filing period under Regulation 40.6(a)(3), this filing will become effective April 27, 2020.
/bit.ly/2y0Iwym
TMX backs down on blanket margin hike after members revolt; Canadian CCP will review methodology and apply margin multipliers at the product level
Costas Mourselas - Risk.net
Canada's largest clearing house has abandoned plans to impose a flat 15% top-up to initial margin balances after a backlash from members. The Canadian Derivatives Clearing Corporation had claimed the move was necessary to guard against volatile markets; members argued it was procyclical and flew in the face of the defaulter-pays logic of central clearing.
/bit.ly/2XpSTpP
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Bursa Malaysia Launches New Feature On Its Bursa Anywhere Mobile App
MondoVisione
Bursa Malaysia Berhad ("Bursa Malaysia" or the "Exchange") has accelerated the release of a new feature on its Bursa Anywhere mobile application ("APP") to help Central Depository Services ("CDS") account holders to manage their accounts remotely in light of the ongoing COVID-19 outbreak.
/bit.ly/2y3hbLW
5G Virus Conspiracy Theory Fueled by Coordinated Effort
Ryan Gallagher - Bloomberg
Researchers identify disinformation campaign but not source; 'You can't get the virus off a phone mast,' one scientist says
A conspiracy theory linking 5G technology to the outbreak of the coronavirus is quickly gaining momentum, with celebrities including actor Woody Harrelson promoting the idea. But the theory is also getting a boost from what some researchers say is a coordinated disinformation campaign.
/bloom.bg/2XwFY5P
Banks And Fintech Companies Accepting Paycheck Protection Program Loan Applications From New And Non-Bank Customers
Brian Thompson - Forbes
After a rough start, the paycheck protection program (PPP) loan process has gained traction. Major banks now have working online portals. They're collecting documents and sending applications to the SBA for approval. And just today, lenders that have never previously registered with the SBA got access to participate through a new online portal. Small businesses should have better access to these loans soon.
/bit.ly/2JT0DZs
Fintech Open Source Foundation Joins Linux Foundation to Expand and Accelerate Development Across Financial Services
PR Newswire (press release)
The Linux Foundation, the nonprofit organization enabling mass innovation through open collaboration, and the Fintech Open Source Foundation (FINOS), a nonprofit whose mission is to accelerate adoption of open source software, standards and best practices in financial services, today announced that FINOS will become a Linux Foundation organization. To enable this effort, the Linux Foundation has agreed to acquire the FINOS operating assets.
/prn.to/3baNDuB
Fintech startups fill gap in Japan's coronavirus cash crunch
Fumika Sato, Masayuki Shikata and Ryotaro Yamada - Nikkei Asian Review
Small and midsize businesses in Japan are turning to financial technology startups for cash as the coronavirus crisis saps their earnings. Online applications and approval allow companies to access funding as soon as the same day they apply, bypassing slower-moving credit lines from traditional banks. These fintech alternatives are being embraced as criticism mounts that the government's financial aid measures totaling 45 trillion yen ($414 billion) are not enough to keep stricken businesses afloat.
/s.nikkei.com/3c5cNuv
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| Cryptocurrencies | | Top stories for cryptocurrencies | Facebook Sues Over Deceptive Ads Linked to Coronavirus Scams
Malathi Nayak and Sarah Frier - Bloomberg
Facebook Inc. sued the founder of a software company for running deceptive advertisements on its social-media platforms, including links to investment scams and bogus information about the coronavirus pandemic. Basant Gajjar's "LeadCloak" software, designed to circumvent automated review systems in Facebook and Instagram, baits users into clicking on links that are unrelated to the ad, according to the lawsuit filed Thursday in California. Facebook said the software pushed deceptive ads for diet pills and drugs and cryptocurrency investment scams.
/bloom.bg/3bZTDGq
Bitcoin SV's First Halving Crimps Profits for BSV Miners
Wolfie Zhao - Coindesk
Bitcoin SV, the network that split off from the Bitcoin Cash blockchain in late 2018, has cut its miners' block reward in half for the first time. Miners on the network produced the 630,000th block around 00:50 UTC time on Friday, which, by design, triggered the halving event that reduced mining rewards from 12.5 BSV to 6.25 per block.
/bit.ly/3c56cjG
Crypto exchange Gemini is adding a stablecoin to its list of tradable assets
Yilun Cheng - The Block
Beginning Friday, crypto exchange Gemini will support three new digital currencies: Chainlink, Orchid and the stablecoin Dai. Gemini already offers trading and custody support for bitcoin, ether, and bitcoin cash, litecoin, and Zcash. The addition of Dai represents the exchange's first listing of a stablecoin.
/bit.ly/2JWLIOe
Petro Couldn't Save the Cartel of the Suns Conspiracy From the Sting of Sanctions
Selva Ozelli - Cointelegraph
At the end of February, the United States Immigration and Customs Enforcement revealed its Cryptocurrency Intelligence Program, which targets peer-to-peer and darknet markets for the illicit use of cryptocurrencies. Then, in a press conference one month later, the U.S. Department of Justice indicted Venezuelan President Nicolas Maduro and 14 other top officials in the country. The charges include leveraging political offices, financial systems and cryptocurrencies for conducting and concealing a massive government-run drug-trafficking, narco-terrorism and corruption operation for over 20 years. This systemic corruption raided Venezuela of billions of dollars and economically wrecked the country, according to the U.S. prosecutors.
/bit.ly/39YfXP9
State regulators crack down on crypto mining firm that touted COVID-19 donation
Michael McSweeney - The Block
Regulators in the U.S. states of Texas and Maryland have issued emergency cease-and-desist orders to a cryptocurrency mining company that touted its donations to COVID-19 relief efforts as part of its sales pitch. Ultra Mining, according to the Texas State Securities Board (TSSB), had offered would-be investors the chance to double their money via the purchase of mining capacity. It also boasted an affiliate marketing program for participants.
/bit.ly/2JUnJz5
New York Power Plant Sold Up to 30% of Its Bitcoin Mining Hash Rate to Institutional Buyers
Wolfie Zhao - Coindesk
Greenidge Generation, an upstate New York power plant that's using proprietary facilities to mine bitcoin (BTC), has sold up to 30 percent of its computing power to institutional buyers. The firm said in an announcement on Friday that the deal, brokered by BitOoda Digital, proceeded the sale of 106,000 terahashes per second (TH/s) of bitcoin mining power to undisclosed buyers consisting of hedge funds and family offices.
/bit.ly/2Rtq6wR
Why Your Crypto Tax Bill May Be About To Go Down
Shehan Chandrasekera - Forbes
The latest developments around capital gains taxes may have a favorable impact for cryptocurrency users. Capital gains taxes have been one of the most hotly debated topics in the tax code for a number of years. Prior to COVID-19, there were some murmurs from the Trump Administration about changing the way we calculate capital gain taxes as a part of the Tax Cuts & Jobs Act (TCJA) 2.0.
/bit.ly/3elpzHk
A closed-end fund tied to bitcoin has been listed on the Toronto Stock Exchange
Yilun Cheng - The Block
Canada's first fund tied to bitcoin has been listed on the Toronto Stock Exchange (TSX). Canadian asset manager 3iQ in Nov. 2019 filed a prospectus for a regulated fund tied to bitcoin, appropriately dubbed The Bitcoin Fund. It is a closed-end fund aimed to add "exposure to the digital currency bitcoin and the daily price movements of the U.S. dollar price of bitcoin," according to a previous press statement.
/bit.ly/3e9gt05
Telegram's Fight Against SEC Will Help Push Cryptocurrency Legislation, Says Trade Group
Anna Baydakova - Coindesk
Telegram's ongoing court battle over its $1.7 billion token offering could help move cryptocurrency regulation forward, according to the Blockchain Association. While unfortunate for Telegram, "I think the outcome of this case can help put pressure on Congress to step in a write a new law that would provide a path forward," Kristin Smith, executive director of the association, told CoinDesk in an interview.
/bit.ly/2xmCrfo
Juno Markets Enables Crypto Deposits with BTC, ETH, Stablecoins
Arnab Shome - Finance Magnates
Juno Markets, a retail brokerage platform, has introduced digital currency deposits, enabling its clients to fund their accounts in a new way. In a press release shared with Finance Magnates, the brokerage detailed that the crypto deposit services will be enabled for four digital currencies - Bitcoin (BTC), Ethereum (ETH), Tether (USDt), and USD Coin (USDC).
/bit.ly/34reOOZ
Blockchain analysis firm Chainalysis partners with infrastructure providers to reach new markets
Yilun Cheng - The Block
Blockchain analysis firm Chainalysis has launched a partnership program to work with major infrastructure providers around the world. Founded in 2014, Chainalysis offers compliance and investigation software for governments, banks, and crypto enterprises to understand regulatory requirements and trace the flow of funds.
/bit.ly/2VkAgky
Internet Voting Is 'Not Secure' and Blockchain Won't Help, Warns Scientific Body
Yael Grauer - Coindesk
As the coronavirus pandemic continues to roil elections and voting officials look for solutions, scientific experts are warning against the dangers of voting online. The American Association for the Advancement of Science's Center for Scientific Evidence in Public Issues has written an open letter to U.S. governors, secretaries of state and state election directors to express concern about the security of voting via the internet or mobile apps. The AAAS letter has been signed by renowned cybersecurity and computing experts and organizations. It reflects research from the National Academies of Science, Engineering and Medicine, the National Institute of Standards and Technology and other organizations.
/bit.ly/2XpLOG0
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| Politics | | An overview of politics as it relates to the financial markets | Trump says he is speeding help to farmers hurt by coronavirus dislocation
Reuters
U.S. President Donald Trump said on Thursday he has directed his agriculture secretary to expedite help to farmers, especially small farmers, hurt by the economic disruption caused by the new coronavirus outbreak.
/reut.rs/2y4s6Vw
A New Front for Nationalism: The Global Battle Against a Virus; Every country needs the same lifesaving tools. But a zero-sum mind-set among world leaders is jeopardizing access for all.
Peter S. Goodman, Katie Thomas, Sui-Lee Wee and Jeffrey Gettleman - NY Times
As they battle a pandemic that has no regard for borders, the leaders of many of the world's largest economies are in the thrall of unabashedly nationalist principles, undermining collective efforts to tame the novel coronavirus.
/nyti.ms/2JWMXg6
Gavin Newsom Declares California a 'Nation-State'; The state is at odds with the federal government over coronavirus plans and much else.
Francis Wilkinson - Bloomberg
California this week declared its independence from the federal government's feeble efforts to fight Covid-19 — and perhaps from a bit more. The consequences for the fight against the pandemic are almost certainly positive. The implications for the brewing civil war between Trumpism and America's budding 21st-century majority, embodied by California's multiracial liberal electorate, are less clear.
/bloom.bg/3c5aNlZ
MGM Told to Hand Over Trump's 'Apprentice' Tapes in Scam Suit
Erik Larson - Bloomberg
Judge tells studio to find a way to share ACN outtakes; Trump family sued by entrepreneurs over company promotion
Unaired footage from Donald Trump's "Celebrity Apprentice" should be handed over to entrepreneurs who claim they were ripped off when Trump and his children repeatedly endorsed a troubled multilevel marketing company on the reality-TV show, a judge said.
/bloom.bg/3eaQZiX
Trump Exhorts Allies to Buy American First to Solve Oil Glut
Ari Natter and Jennifer A Dlouhy - Bloomberg
White House eyes encouraging allies to prioritize U.S. oil; Effort comes amid limited options for aiding U.S. producers
The Trump administration has a plan for helping drain U.S. storage tanks filling up with crude: Persuade other countries to buy those American barrels first. That "Buy American" pitch is coming in the form of administration officials exhorting foreign allies to prioritize U.S. crude. The effort involves both the departments of Energy and State, said two people familiar with the matter who asked not to be named discussing administration strategy.
/bloom.bg/3c37SKo
Governors Consider Consortium to Skirt FEMA Dysfunction
Polly Mosendz - Bloomberg
Nurses protest shortages; states consider how to fill the gap; Stockpile is depleted as competition drains the marketplace
The nation's governors say they can't count on Washington to supply the medical equipment needed to fight the coronavirus pandemic, so they are making plans to band together and procure supplies themselves.
/bloom.bg/2VoJZGO
American Democracy May Be Dying; Authoritarian rule may be just around the corner.
Paul Krugman - NY Times
If you aren't terrified both by Covid-19 and by its economic consequences, you haven't been paying attention. Even though social distancing may be slowing the disease's spread, tens of thousands more Americans will surely die in the months ahead (and official accounts surely understate the true death toll). And the economic lockdown necessary to achieve social distancing — as I've been saying, the economy is in the equivalent of a medically induced coma — has led to almost 17 million new claims for unemployment insurance over the past three weeks, again almost surely an understatement of true job losses.
/nyti.ms/2Vni6yy
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| Regulation & Enforcement | | For more regulatory, visit MarketsReformWiki, our website focused on current market reform efforts. | SEC Enhances Standards for Critical Market Infrastructure
SEC
The Securities and Exchange Commission today adopted amendments to its rules for securities clearing agencies to apply enhanced standards to all SEC-registered central counterparties and central securities depositories. The rule amendments build on rules adopted by the Commission in 2016 pursuant to the Dodd-Frank Act to establish enhanced standards for the operation and governance of securities clearing agencies deemed systemically important and those that are central counterparties for security-based swaps.
/bit.ly/2K6Qmt7
ESMA postpones publication dates for annual non-equity transparency calculations and quarterly SI data
ESMA
The European Securities and Markets Authority (ESMA), the EU's securities markets regulator, is issuing a Public Statement postponing the application of the annual non-equity transparency calculations and the calculations for the systematic internaliser test for derivatives, ETCs, ETNs, emission allowances and structured finance products (SFPs) under MiFID II.
/bit.ly/2wswtcv
ESMA promotes coordinated action regarding benchmarks external audit requirements
ESMA
The European Securities and Markets Authority (ESMA), the EU's securities markets regulator, is issuing a Public Statement to promote coordinated action by National Competent Authorities (NCAs) regarding the timeliness of fulfilling external audit requirements for interest rate benchmark administrators and contributors to interest rate benchmarks.
/bit.ly/3b527w0
ESMA Extends MIFID II/MFIR Transparency Review Report Consultation to 14 June 2020
ESMA
The European Securities and Markets Authority (ESMA), the EU's securities markets regulator, has decided, in view of the effects of the ongoing COVID-19 pandemic on stakeholders and market participants, to further extend the response date for the consultation on the MiFID II/MiFIR review report on the transparency regime for non-equity instruments and the trading obligation for derivatives to 14 June 2020.
/bit.ly/3camUOR
FINRA OTCE and OTC Transparency Data Websites Availability
FINRA
FINRA will be performing scheduled maintenance to the OTCE.FINRA.org and OTCTransparency.FINRA.org websites on Saturday, April 11, 2020, from approximately 10 a.m. to 4 p.m. ET. During this time, these websites will be unavailable to users.
/bit.ly/2y0HNgC
FINRA Amends Arbitration Code to Expand Options Available to Customers if a Firm or Associated Person Is or Becomes Inactive
FINRA
FINRA amended its Code of Arbitration Procedure for Customer Disputes (Customer Code) to expand a customer's options to withdraw an arbitration claim if a member firm or an associated person becomes inactive.1 These amendments also allow customers to amend pleadings, postpone hearings, request default proceedings and receive a refund of filing fees in these situations.
/bit.ly/34oMqNo
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Federal Reserve enters new territory with support for risky debt; Programme to support 'junk' bonds aims to soften blows from coronavirus and downgrades
Joe Rennison Robin Wigglesworth and Colby Smith - FT
The Federal Reserve has jolted credit markets by expanding the scope of its support measures, announcing plans to buy debt issued by riskier companies in a radical addition to its crisis-fighting toolkit.
/on.ft.com/34oX5rD
US is on course for a downward spiral of mortgage failures; Government policy could exacerbate an already tricky situation
John Dizard - FT
For decades, most American homeowners could believe their house financing was safe. The mortgage company whose representative met them in their office in the local mall existed in a complex but predictable harmony with investors, other banks and companies called servicers, which administer mortgage payments.
/on.ft.com/2JST3Ou
U.S. Stocks Log Best Week Since 1974; Dow, S&P 500 climb 1% after the Federal Reserve unveils new programs to aid business
Caitlin Ostroff, Akane Otani and Chong Koh Ping - WSJ
U.S. stocks soared Thursday to post their biggest week of gains since 1974, extending a remarkable rally despite evidence of increasing economic strain due to the coronavirus pandemic. Markets charged higher much of the past week, helping shares of everything from banks to manufacturers to hotel operators chip away at their losses.
/on.wsj.com/3aZ6s3H
Everything Is Awful. So Why Is the Stock Market Booming? Investors are betting that powerful interventions from Washington will protect the long-term profitability of major companies.
Neil Irwin - NY Times
What on earth is the stock market doing? Death and despair are all around. The number of people filing for unemployment benefits each of the last two weeks was about 10 times the previous record — and is probably being artificially held back by overloaded government systems. Vast swaths of American business are shuttered indefinitely. The economic quarter now underway will most likely feature Great Depression-caliber shrinkage in economic activity.
/nyti.ms/3b13ETs
Covid-19 Brings a Reckoning to the Business World; Macy's and Carnival Corp. face grave decisions and may not be able to rebound.
Timothy L. O'Brien - Bloomberg
The coronavirus pandemic has forced Macy's Inc. — a retail giant venerable enough to be featured in an old Christmas movie and familiar enough to retain bragging rights to New York's annual Thanksgiving parade — to throw most of its 130,000 workers into the unknown.
/bloom.bg/2VwiXgL
A Patchwork of Small Business Grants and Loans; Some states, cities and companies also are offering relief to businesses that could help fill gaps until federal assistance arrives.
Nick Leiber - Bloomberg
Beyond the U.S. government's two major emergency loan programs (the Paycheck Protection Plan is attracting criticism for failing to disburse money quickly enough), some states and cities are offering relief to local businesses in the form of grants, loans, and loan guarantees. The programs are largely meant to help fill gaps until federal assistance arrives. A handful of major businesses and nonprofits are also making grants that aren't limited to specific locations. We've compiled this list of select regional, local and corporate resources.
/bloom.bg/3edbvzy
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Inside Bill Ackman's $2.6bn big short; Hedge fund chief bets on stockmarket recovery after profiting from coronavirus sell-off
Dan McCrum and Ortenca Aliaj - FT
In late February, Bill Ackman began worrying about the approaching coronavirus pandemic. The silver-haired billionaire was so concerned about the economic fallout that he even contemplated selling all of the holdings at the investment group he founded almost two decades ago.
/on.ft.com/3ee32vK
Invesco chief Martin Flanagan faces toughest test of 15-year reign; Giant US fund manager suffers plunging assets while bedding in mega M&A deals
Owen Walker - FT
Invesco's recent disclosure that chief executive Martin Flanagan had received a 10 per cent pay rise was awkwardly timed to say the least, coming as it did the day after the giant US investment group's share price tumbled to a 24-year low.
/on.ft.com/34xZFM0
Smaller wealth managers will be all the more vulnerable after the crisis; Even if revenues are boosted temporarily, the overall impact on private banking will be disruptive
Stefan Wagstyl - FT
Wealth managers have been kept profitably busy helping their rich clients negotiate the coronavirus market shock. A surge in volatility has created opportunities: lossmaking positions that need to be liquidated and a rising demand for emergency loans. Some clients have taken the approach of trading actively, betting on the violent price swings.
/on.ft.com/2JWFOg2
California Hedge Fund Bets on Volatility Spike, Reaps 400% Gain; LongTail Alpha funds capitalized on the markets' reaction to the new coronavirus pandemic
Justin Baer - WSJ
A California hedge-fund manager posted large gains last month by betting on the reemergence of market chaos. LongTail Alpha LLC's OneTail Hedgehog Fund II rose 156% in March en route to a first-quarter return of 400%, while the firm's TwoTail Alpha Fund posted a 65% gain last month, according to April 3 letters to LongTail investors viewed by The Wall Street Journal.
/on.wsj.com/2UYITT9
'Woodford protégé' finds he needs to update CV; Fallen investor's former apprentice Mark Barnett has lost second of three jobs
Matthew Vincent - FT
"Former protégé of fallen investment star" is not a great line for the CV. But that's how press reports this week described Mark Barnett, who owed his trade — and made several similar trades — to recently humbled fund manager Neil Woodford. And the one-time apprentice may find he does need to update his resume. This week he lost the second of his three jobs, managing the Perpetual Income and Growth Investment Trust, because of a "period of underperformance". He was fired from the Edinburgh Investment Trust in December.
/on.ft.com/2XrXhVh
Billionaire Cliff Asness' hedge fund AQR hit with $43B COVID-19 losses
Thornton McEnery - NY Post
Billionaire investor Cliff Asness has spent his quarantine watching $43 billion disappear. Asness' AQR Capital — which managed $186 billion at the end of 2019 — has updated its Web site to reflect that its assets under management as of March 31 now stand at $143 billion.
/bit.ly/2yQyUqi
Calpers Forfeited a $1 Billion Payday by Scrapping Market Hedge
Erik Schatzker -Bloomberg
Fund exited in late January just weeks before stocks fell; It kept a second 'tail-risk' investment long enough to cash in
Three years ago, America's largest pension fund made an unusual investment. It bought so-called tail-risk protection, a kind of insurance against financial catastrophe. In a market meltdown like the one sparked by the coronavirus, the strategy promised a massive payout -- more than $1 billion.
/bloom.bg/3ebywCP
Exclusive: U.S. banks prepare to seize energy assets as shale boom goes bust
David French, Imani Moise - Reuters
Major U.S. lenders are preparing to become operators of oil and gas fields across the country for the first time in a generation to avoid losses on loans to energy companies that may go bankrupt, sources aware of the plans told Reuters.
/reut.rs/2Rtrf7D
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Food Supply Fears Are Growing as Romania Bans Grain Exports
Irina Vilcu, Anatoly Medetsky, and Megan Durisin - Bloomberg
Romania is taking the harshest stance yet on food supply; The ban is largely symbolic and will affect few cargoes
Romania became the first country to cut off grain exports during the coronavirus pandemic, a dramatic move that could fan worries about the global food supply.
/bloom.bg/2yL2q0p
China's Hedge Funds Were Building Cash War Chests in March
Bloomberg News
One star manager raised more than $1.1 billion for single fund; Product launches more than doubled last month from February
As the coronavirus began to take its economic toll on the U.S. and Europe last month, hedge funds in China were busy boosting their war chests.
/bloom.bg/2xmuk2q
Why Coronavirus Cases Have Spiked in Hong Kong, Singapore and Taiwan
K.K. Rebecca Lai - NY Times
Hong Kong, Singapore and Taiwan — once heralded for early successes in battling the pandemic — are now confronting a new wave of coronavirus cases, largely fueled by infections coming from elsewhere. Singapore is also seeing a rise in local transmissions, with more than 400 new cases in the past week that have been linked to migrant worker dormitories.
/nyti.ms/2Rqmnjy
Hong Kong's the Canary in the Coronavirus Economy; The city was the first to adopt direct cash handouts. Its long-term wage subsidies may be another harbinger.
Nisha Gopalan - Bloomberg
Hong Kong led the world in adopting helicopter money. Now the city's long-term wage subsidies have again put it at the forefront of global efforts to blunt the impact of the coronavirus. Other economies should pay attention.
/bloom.bg/2XwHC7v
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| Brexit | | Financials stories regarding the decision of the United Kingdom to leave the European Union | Brexit: Labour warns against 'chaotic' no deal outcome
BBC
The last thing UK business needs in the current economic climate is a "chaotic exit" from EU trading rules, Labour's new shadow chancellor has warned. Anneliese Dodds urged ministers not to put "ideology over national interest". The UK has left the EU but has given itself until 31 December to negotiate a trade deal, until which time most EU rules will still apply. New Labour leader Sir Keir Starmer has said it was "a mistake" to put that date into legislation. Downing Street has insisted the Brexit timetable remains unchanged.
/bbc.in/2wqKWFQ
We used to moan about normal life, now our fear is we'll never get it back
Gaby Hinsliff - The Guardian
When this outbreak first began, all the talk was of a sharp but mercifully short economic sting in the tail. The downturn triggered by putting everyday life on hold to halt the infection should, we were told, be V-shaped: a shock, but one from which we'd soon bounce back. Like many comforting predictions in the early days of this pandemic, that is beginning to look alarmingly over-confident.
/bit.ly/3c8A5j7
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| Miscellaneous | | Stories that don't quite fit under the other sections | CDC Extends 'No Sail Order' for All Cruise Ships by At Least 100 Days
Jonathan Levin - Bloomberg
The Centers for Disease Control and Prevention extended its "No Sail Order" for all cruise ships by at least 100 days -- or until Covid-19 is no longer considered a public health emergency. The CDC said there are 100 cruise ships at sea off U.S. coasts, with 80,000 crew members on board. Twenty ships at port or anchorage in the U.S. have known or suspected Covid-19 among crew, according to the agency's statement Thursday.
/bloom.bg/2VgPVS1
American Worship in the Time of Pandemic; Unable to gather in churches, mosques or synagogues, the religious are searching for new ways to show their faith.
Jeff Green
The number of people searching for "prayer" on Google in March was higher than at any time in the last five years. As deaths from Covid-19 mounted and places of worship closed across the globe, the intensity of searches grew right along with the fear.
/bloom.bg/2yKMD1G
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