| October 25, 2022 | "Irreverent, but never irrelevant" | | |  | John Lothian
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Hits & Takes
John Lothian & JLN Staff
Bevon Joseph posted a somewhat cryptic message on LinkedIn thanking his corporate sponsors, partners, donors, parents and amazing students, then announcing he would "no longer be at Greenwood Project," but would continue to work to help Black and Latinx students succeed. I am flabbergasted. The Greenwood Project was his baby. He loved every part of it and was its best promoter and spokesman. He mentions something in another post about waiting for what comes next.
In the rush to get JLN out yesterday, I forgot to include an opinion piece we published Friday by Joe Raia of the Abaxx Exchange titled "Is the Era of the Traditional FCM Model Coming to an End?" Joe weighs in on a subject that is top of mind with the recent FTX proposal before the CFTC, the CME FCM application to the CFTC and the recent Dorman Trading acquisition by MIAX.
BMLL announced it has secured $26 million in Series B funding led by Nasdaq Ventures, FactSet and IQ Capital's Growth Fund to help fuel BMLL's product and geographic expansion. We recently interviewed Dr. Elliot Banks about the new BMLL Vantage quant analytics tool.
The Wall Street Journal has an explainer video titled "How the IPO Market Froze" with the subheadline, "Traditional IPOs have raised around $7 billion this year, down nearly 94% from this time last year." The video explains that the IPO market faces its worst year in two decades, which has forced some companies to slash their valuations by 80% and seek funding in private markets.
Imagine me saying this sounding like Donald Duck. Actually, forget that, we need to conserve helium. Helium is one of the latest commodities to be having a global shortage, according to an NBC story. This is important because helium is used in MRI machines to cool the magnets, not because birthday balloons are making a comeback. Russia was supposed to bring a big helium field into production that would supply one third of the world's needs, then there was a fire, then there was this stupid Putin's folly war in Ukraine that has virtually stopped commerce with Russia.
WhatsApp this morning is WhatsDown, but Meta is reporting the app has been restored so users can go back to making encrypted conversations.
I went and had my Covid-19 booster shot yesterday at the local Walgreens in Elmhurst and today I have a ringing headache. I was going to get my flu shot and a shingles shot, because I am a masochist (idiot), but I could not get the two latter shots at Walgreens under my insurance. I have to go to my doctor for those. I wanted to get the Covid booster before I head to Florida in early November and then for FIA EXPO on November 14 and 15.
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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This half day event will gather exchange CEOs from the Association of Southeast Asian Nations (ASEAN), notable emerging Asia investment professionals, and US institutional investors to discuss the investment dynamics of this fast-growing region. Places are limited and will be allocated on a first come first serve basis.
For more information, and to register please visit: http://ow.ly/iH2N50Lgp4I
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MWE SHORT: Walt Lukken - The New Normal and the Five Tips
JohnLothianNews.com
Sometimes a MarketsWiki Education presentation is of the "buy one, get one free" variety. Walt Lukken, president and CEO of the Futures Industry Association delivered just that - two interesting and thoughtful presentations - to a crowd of summer interns at the MarketsWiki Education World of Opportunity Chicago 2016.
Watch the video »
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Is the Era of the Traditional FCM Model Coming to an End?
Joe Raia - Abaxx Exchange
No, at Abaxx Exchange we don't believe the era of the traditional FCM model is coming to an end, nor should it be. However, the recent Risk.net article "Brokers slam CME over 'conflict of interest' in FCM plan" made us realize that not everyone may feel the same way, and we need to make our case for the traditional FCM model. Some exchange groups ranging from the largest that date back more than a century to the digital asset focused upstarts have asserted that risk mutualization processes - currently favored and handled by FCMs - can and should be disintermediated. Further examination of the proposed structure of disintermediation supposes FCMs will be displaced by regulated Exchanges and Clearing Houses. They will directly manage the risk of large diverse customers and products in addition to acting as the 'self-regulator' of these markets. This is an inherent conflict of interest.
/jlne.ws/3NaXCUj
****** Slowly but surely the times they are a changing. ~JJL
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He disarmed bombs in Iraq. Now he's fighting in the highly competitive commodities space.
H. Lee Murphy - Crain's Chicago Business
As a U.S. Army Special Forces captain in Iraq, Matthew Dyer disarmed bombs in some of the most hazardous work engaged by the military since perhaps the Vietnam War. As CEO of Amerikoa Ingredients in Melrose Park today, Dyer walks a tightrope in one of the most competitive businesses around: distributing commodity products like sugar where contracts are won or lost on penny-to-the-pound prices. He compounded the challenge by starting up Amerikoa in March 2020, just days after the start of the COVID pandemic.
/jlne.ws/3FhZfOh
****** Dyer is not the name of a guy I would assign to disarm bombs.~JJL
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Lake Geneva estate built for meatpacking dynasty sells for $17 million; It's the second-highest price ever paid in Lake Geneva-about half what billionaire J. Christopher Reyes paid next door in January.
Dennis Rodkin - Crain's Chicago Business
A 20-acre estate in Lake Geneva sold for $17 million, the second-highest price on record for a property in the Wisconsin hub of high-end second homes. The property on Snake Road sold Oct. 21. It first came on the market at $20.75 million in February 2021. By the time the property went off the market in August, the asking price had come down to $18.5 million.
/jlne.ws/3zenadA
***** The former Swift estate is sold. Crain's reports, "The estate was originally named Villa Hortensia, after Hortense Swift, daughter-in-law of Gustavus Swift, who founded the Swift meat-packing empire in Chicago in the 1870s." This is how the Lake Geneva area developed, big mansions built by Chicago business titans and their families.
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Monday's Top Three
Our most-clicked story Monday was the MIAX press release Miami International Holdings Announces Acquisition of Dorman Trading, a Full-Service FCM. Second was How Cold War II Could Turn Into World War III, a Bloomberg opinion piece from Niall Ferguson. Third was the Miami International Holdings completes acquisition of Dorman Trading story from The Trade.
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MarketsWiki Stats
27,044 pages; 241,323 edits
MarketsWiki Statistics
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| All MarketsWiki Sponsors» | | | | | | | John Lothian News (JLN) is the news division of John J. Lothian & Company, Inc. (JJLCO). The online media and financial services firm is staffed by derivatives industry, journalism and technology professionals. | | | | | | | John Lothian News Editorial Staff: | | | John Lothian
Publisher | | | Sarah Rudolph
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| Lead Stories | The Crypto Story; Where it came from, what it all means, and why it still matters.
Matt Levine - Bloomberg
There was a moment not so long ago when I thought, "What if I've had this crypto thing all wrong?" I'm a doubting normie who, if I'm being honest, hasn't always understood this alternate universe that's been percolating and expanding for more than a decade now. If you're a disciple, this new dimension is the future. If you're a skeptic, this upside-down world is just a modern Ponzi scheme that's going to end badly-and the recent "crypto winter" is evidence of its long-overdue ending. But crypto has dug itself into finance, into technology, and into our heads. And if crypto isn't going away, we'd better attempt to understand it. Which is why we asked the finest finance writer around, Matt Levine of Bloomberg Opinion, to write a cover-to-cover issue of Bloomberg Businessweek, something a single author has done only one other time in the magazine's 93-year history ("What Is Code?," by Paul Ford). What follows is his brilliant explanation of what this maddening, often absurd, and always fascinating technology means, and where it might go. -Joel Weber, Editor, Bloomberg Businessweek
/jlne.ws/3zdPcFR
Texas Natural Gas Drops Toward Zero as Output Swamps Pipelines; Gas in the Permian Basin trades for as little as 20 cents; Pipeline maintenance expected to aggravate shipping headaches
Sergio Chapa, Gerson Freitas Jr, and Joe Carroll - Bloomberg
Natural gas prices in the Permian Basin of West Texas are plunging toward zero as booming production overwhelms pipeline networks, creating a regional glut of the fuel. Gas in an area of the vast Permian known as Waha traded for as little as 20 cents to 70 cents per million British thermal units on Monday, traders said. That compares with the US benchmark futures contract that's trading around $5.20 and European prices close to $28.
/jlne.ws/3TWaGPH
Xi's Total Control in China Injects More Risk Into Chaotic World; Xi puts all allies on China's most powerful leadership body; Concern grows that nobody will dare to tell Xi that he's wrong
Rebecca Choong Wilkins - Bloomberg
Minutes after pulling off a power play that stunned even seasoned China experts, a smiling Xi Jinping gave an optimistic outlook for the years ahead. Noting how the Communist Party brought China fast economic growth and social stability over the past 40 years, Xi vowed to further open the world's second-biggest economy and stay connected with the rest of the globe. The party would align its priorities with the nation's 1.4 billion people, he said, and continue working hard to give them "a better life."
/jlne.ws/3f2fsw8
Xi Jinping's men: Why China's new politburo has spooked markets; President stacks elite political body with loyalists as he tightens grip on power
Edward White and Andy Lin - Financial Times
On the final day of the Communist party national congress, held every five years in Beijing, China's president Xi Jinping unveiled a new leadership team that signalled his tightening grip over the military and economic superpower.
/jlne.ws/3FjCI3D
China's wealthy activate escape plans as Xi Jinping extends rule; Rich citizens fearing high taxes and personal safety move capital out of country and arrange residences overseas
Edward White and Mercedes Ruehl - Financial Times
Wealthy Chinese are pulling the trigger on exit plans from their homeland as pessimism builds over the future of the world's second-largest economy under Xi Jinping and the ruling Chinese Communist party.
/jlne.ws/3D8RSFQ
Embattled London Metal Exchange Is Headed Into Yet Another Fight; Metals world is polarized over how to handle Russian supplies; Some consumers refuse Russian metal, others depend on it: poll
Bloomberg
The London Metal Exchange has faced a firestorm of criticism this year, and it's about to get even worse. The 145-year-old bourse is already taking heat from regulators and being sued by hedge funds and proprietary traders over its handling of a massive short squeeze in nickel in March. Now it's lurching toward yet another clash -- this time over whether to ban Russian supplies, in a debate that is polarizing the metals world.
/jlne.ws/3VYSrek
Fed Is Losing Billions, Wiping Out Profits That Funded Spending
Enda Curran, Jana Randow and Jonnelle Marte - Bloomberg
Profits and losses aren't usually thought of as a consideration for central banks, but rapidly mounting red ink at the Federal Reserve and many peers risks becoming more than just an accounting oddity. The bond market is enduring its worst selloff in a generation, triggered by high inflation and the aggressive interest-rate hikes that central banks are implementing. Falling bond prices, in turn, mean paper losses on the massive holdings that the Fed and others accumulated during their rescue efforts in recent years.
/jlne.ws/3f6w7yM
Yellen taking steps to enhance Treasury market, boost funds resilience
David Lawder - Reuters
The U.S. Treasury is taking steps to strengthen the resilience of the Treasury debt market and private money market and bond funds, but the U.S. financial system is functioning well despite elevated global volatility, Treasury Secretary Janet Yellen said on Monday. Yellen, speaking to the Securities Industry and Financial Markets Association's (SIFMA) annual meeting in New York, acknowledged that liquidity in the vast Treasuries market has diminished, raising costs, but this and other parts of the U.S. financial system have not been a source of financial instability.
/jlne.ws/3TzkKy3
California Poised to Overtake Germany as World's No. 4 Economy; Contrary to popular belief, the Golden State has proven resilient, outperforming its US and global peers.
Matthew A. Winkler - Bloomberg
Gavin Newsom is as familiar as anyone with the media narrative of earthquakes, persistent wildfires, droughts, homelessness and companies fleeing California to Texas for a tax- and regulation-free lifestyle. This is nothing new. California's governor recalls a 1994 Time Magazine cover story citing "a string of disasters rocks the state to the core, forcing Californians to ponder their fate and the fading luster of its golden dream." And yet, "the California dream is still alive and well," the state's 40th governor said in a Zoom interview a month before his probable reelection.
/jlne.ws/3Fb5bbw
Pimco, UBS Among Investors Demanding Science-Based Climate Goals; A coalition of finance firms overseeing $36 trillion of assets have told some of the world's biggest corporate carbon polluters to set science-based emissions goals.
Alastair Marsh - Bloomberg
A coalition of banks, asset managers and insurers overseeing a combined $36 trillion of assets have told some of the world's biggest corporate polluters to make sure their targets for reducing CO2 emissions are based on science. Credit Agricole SA, Pacific Investment Management Co. and UBS Group AG are among 317 financial firms that have written to over 1,000 companies urging them to set goals through the Science Based Targets initiative, a widely-endorsed program for screening climate plans. Companies to receive the letter, which include BASF SE, Qantas Airways Ltd. and Rio Tinto Group, are being asked to set emissions goals in line with the Paris agreement's ambition of limiting global warming to 1.5C.
/jlne.ws/3soslUv
SEC Chair Gensler Says Crypto Is Centralized Despite Founding Principles
Sander Lutz - Decrypt
Gary Gensler, chair of the Securities and Exchange Commission, took yet another shot at the crypto industry in a speech Monday, critiquing what he perceives to be the disproportionate power wielded in the sector by centralized cryptocurrency exchanges. Gensler's comments, made on Monday before the annual meeting of the Securities Industry and Financial Markets Association-a prominent trade group representing securities firms, banks, and asset managers-focused primarily on promoting competition among equity market makers. But the SEC chair, while cautioning about the danger of centralization in traditional finance, also made a point to take a passing swipe at the crypto industry.
/jlne.ws/3SDNnsK
Big Oil's Profits Just Keep Rolling in as World Economy Sputters
William Mathis and Kevin Crowley - Bloomberg
Big Oil's run of record profit will suffer only a minor dent for the third quarter, even as the global economy shows signs of cracking under the pressure of rising inflation and interest rates. Indications of the slowdown will be evident across their sprawling businesses, from lower crude prices to slumping chemicals margins. Yet the five oil supermajors are still poised to report the second-highest earnings since their formation in the early 2000s, according to data compiled by Bloomberg.
/jlne.ws/3stSBNe
Why Daylight Saving Could Exacerbate Europe's Energy Crisis; Ending the practice of turning back the clocks one hour would generate financial and environmental savings for Europe just when the continent needs it most, according to new research.
Feargus O'Sullivan - Bloomberg
It happens every year. As daylight saving arrives in late autumn and large parts of the northern hemisphere are plunged abruptly into early evening darkness, millions of us ask ourselves if this discombobulating annual clock change is truly necessary.
/jlne.ws/3N1xqvj
Sunak and the City: business hopes for a twist-free sequel; Financial services' fall from favour may be an acceptable price to pay for stability
Cat Rutter Pooley - Financial Times
The City learned one lesson from Kwasi Kwarteng's short stint as chancellor: be careful what you wish for. Kwarteng was the chancellor who delivered much that was on business lobbyists' policy shopping-lists. Sure, omissions stood out: the levy on banks' balance sheets and the banking surcharge. But he reversed corporation and dividend tax rises, ended the top rate of income tax, and signalled the demise of the banker bonus cap. All of those - save the last - have since been sacrificed. And business is pleased about it.
/jlne.ws/3SAjY2K
Cboe Global Markets and SBI Holdings join forces to expand in Japan; The move will allow Cboe to increase its presence in the APAC region, while SBI will be able to benefit from Cboe's expertise in equities and digital assets.
Wesley Bray - The Trade
Cboe Global Markets and SBI Holdings have signed a Memorandum of Understanding (MoU) in which they agree to discuss collaboration opportunities in the areas of traditional and digital finance. Subject to any applicable regulatory approvals, the MoU lays the foundation for the potential exchange of resources in regard to planned joint business initiatives in equities, digital assets and other financial products and services.
/jlne.ws/3zaxfZ2
Leaders in Trading 2022: Meet the nominees for.... Outstanding FX Trading Venue; Learn more about the five firms shortlisted for our Editors' Choice Award for Outstanding FX Trading Venue this year: including CME EBS, Eurex, Euronext FX, LSEG (Refinitiv FXall) and 360T, Deutsche Börse.
Wesley Bray - The Trade
The TRADE is delighted to introduce the shortlist for our Editors' Choice, Outstanding FX Trading Venue. The shortlisted FX trading venues have all stood out over the past year for their innovative approach and outstanding performance. Learn more about our shortlisted candidates below, including CME EBS, Eurex, Euronext FX, LSEG (Refinitiv FXall) and 360T, Deutsche Börse.
/jlne.ws/3WcH5n9
BMLL raises $26 million to finance North American expansion; The data specialist has raised funding from new and existing investors including Nasdaq Ventures, FactSet and IQ Capital.
Laurie McAughtry - The Trade
BMLL, which provides historical Level 3 data and analytics to the capital markets, has secured $26 million in Series B investment from Nasdaq Ventures, FactSet, IQ Capital's Growth Fund and ACF Investors, among others. The firm plans to use the funding to support the acquisition of new datasets globally, as well as to build on its North American presence with the launch of a new office in New York.
/jlne.ws/3VZybsU
Wall Street Sinks Billions Into ETFs on Both Ends of Treasury Yield Curve; TLT and BIL funds have both now raked in $13 billion this year; Long-dated debt can benefit if Fed's aggression eases, BI says
Katherine Greifeld - Bloomberg
Wall Street divisions are growing on what's next for the beaten-up world of Treasuries as the Federal Reserve's aggressive tightening ramps up the risk of a recession by the day. The latest sign: ETF investors are lavishing their billions on funds that track both the short- and the long-end of the yield curve.
/jlne.ws/3eW2NuQ
Startup Sees a $60 Billion Bond Market Ripe for Disruption; Cicada builds exchange for Latin America bonds and swaps; Startup launching with Mexican local currency fixed income
Ezra Fieser - Bloomberg
Among the ideas that have minted billion-dollar tech companies, Cicada's business model is about as unflashy as it gets. The startup isn't going after the industries that have grabbed headlines and the bulk of venture capital cash like credit cards, transportation and food delivery. Instead, it sees a fortune to be made in fixed-income trading -- specifically, local currency bonds in emerging markets.
/jlne.ws/3zcpQIC
Stimulus Support Staff Cuts Mean Limited Fraud Monitoring; States and localities got $350 billion of Rescue Plan funds; Treasury Department has fielded 2,000 emails, 300 calls a week
Mackenzie Hawkins and Marvis Gutierrez - Bloomberg
More than 30,000 cities, counties and tribal governments with billions of dollars in federal stimulus money to spend are now largely on their own. The US Treasury Department has already begun scaling down its support system for Covid-19 relief grant recipients, after Congress failed to let the agency tap into other, already allocated administrative funds to help with costs. At best, that means a lot more work for small localities, who frequently ask Treasury about reporting requirements and restrictions on how they can use funds for operations, housing, infrastructure and other projects. At worst, it could lead to fraudulent spending.
/jlne.ws/3Tz5lxI
Celsius Shareholders Are Denied Committee Status to Fight Customers for Assets; Judge declines to grant big institutional investors an official committee that could bill its fees to the crypto lender's bankruptcy estate
Soma Biswas - The Wall Street Journal
A bankruptcy judge declined to grant Celsius Network LLC shareholders an official committee to battle the company's customers over assets in chapter 11, finding no strong likelihood that equity holders will recoup any of their investments in the business. Equity holders including CDP Investissements Inc. and WestCap Management LLC, which together led a $400 million investment round in Celsius last year, failed to show a substantial likelihood the cryptocurrency lender is still solvent after its chapter 11 filing, U.S. Bankruptcy Judge Martin Glenn ruled Monday. The investors had sought official status in the chapter 11 case, which would have allowed them to bill their legal fees to the bankruptcy estate.
/jlne.ws/3WciYVF
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Putin's Threats Worry Ukraine's NATO Allies as Sign of Russian Desperation; With the war in Ukraine entering its ninth month there are no signs of Russian preparations to use nuclear arms, but its troops continue to lose ground.
Natalia Drozdiak, Alberto Nardelli, and Alex Wickham - Bloomberg
Ukraine's allies are increasingly concerned that desperation in the Kremlin over an unrelenting string of battlefield failures may lead Russia to escalate its war, possibly using a massive attack on a target like a dam or even a weapon of mass destruction. For the moment, there's no sign Moscow is actually making preparations for such a strike, even as it ratchets up the rhetoric, according to officials from North Atlantic Treaty Organization countries who spoke on condition of anonymity to discuss sensitive intelligence. US and European defense ministers rejected allegations from Russian counterpart Sergei Shoigu in a rare round robin of phone calls Sunday alleging Kyiv is preparing to use a "dirty bomb."
/jlne.ws/3f5a0J2
Why Russia's strategic defeat is in the cards
Alexander J. Motyl, Opinion Contributor - The Hill
Bloomberg commentator Leonid Bershidsky recently argued that a "strategic Russian defeat" is a "wishful theory." As Bershidsky argues: "The flaw in the 'strategic defeat' logic is that, while Russia's nuclear capability is seen as the joker in [Vladimir] Putin's hand, there are no practical means for the West to render Russia small and pliant. To achieve the maximum goals, the West would need to ignore Putin's nuclear leverage and put boots on the ground. Because, again in this perspective, unless Russia is similarly subjugated, it cannot be 'de-Nazified' the way Germany and Japan shed their imperialism thanks to decades of occupation, forced demilitarization and externally imposed political structures."
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | ICE Hosts Fixed Income Forum to Discuss Trends and Challenges in the Fixed Income Market; Industry leaders to discuss key topics including trade automation, sustainable finance and regulatory landscape
ICE
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology and market infrastructure, today announced it will host the ICE Fixed Income Forum on Tuesday, October 25, 2022, at the NYSE. This event brings together industry leaders to discuss important topics in fixed income markets, including increasing automation across the front, middle and back office, the evolving regulatory landscape and the impact of sustainable finance and ESG on fixed income markets. The event features conversations with U.S. Deputy Secretary of the Treasury, Wally Adeyemo, CEO of ISDA, Scott O'Malia and ICE's Founder, Chair and CEO, Jeff Sprecher, among many others.
/jlne.ws/3W0pPBq
COLUMN-London Metal Exchange Week: cocktails, canapés and crises
Andy Home - Reuters
It's not the first time the 145-year-old London Metal Exchange (LME) has found itself in crisis. There was the Tin Crisis of 1986, the Nickel Crisis of 1988 and what at the time was dubbed "The Sumitomo Scandal" but could now better be described as The 1996 Copper Crisis. This year, however, is still something of a stand-out with not one but two tsunamis rocking the grand old dame of industrial metals trading.
/jlne.ws/3gy4QW5
Cboe Global Markets and SBI Holdings, Inc. Sign Memorandum of Understanding
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, and SBI Holdings, Inc. ("SBI"), a pioneer of internet financial services in Japan, today announced the companies have signed a Memorandum of Understanding ("MoU") whereby they have agreed to discuss potential business collaboration opportunities in the areas of traditional and digital finance. The MoU between Cboe and SBI lays the foundation for the potential exchange of resources and information with respect to pursuing cooperation and planned joint business initiatives between the two firms in equities, digital assets, and other financial products and services, subject to any applicable regulatory approvals.
/jlne.ws/3DqHE5k
CME Group and Marex to Expand Client Access to CME Group Aluminum Futures
CME Group
CME Group, the world's leading derivatives marketplace, and Marex, one of the largest global metals brokers, today announced that Marex will expand its clients' access to CME Group's base metals markets, starting first with CME Group's global Aluminum futures contract.
/jlne.ws/3W0ny9m
The Pre-Market Environment welcomes four new companies; Onalabs, Ludium, Vamos and V2C join this initiative, which already comprises 24 companies
BME-X
The Pre-Market Environment (EpM), BME's acceleration programme within the process of incorporating companies into the financial markets, has grown with the incorporation today of the companies Onalabs, Ludium, Vamos and V2C. The programme now comprises 24 companies. Onalabs is a company that was born 5 years ago. Thanks to its patented technology that allows the measurement of bioanalytes through sweat and skin, it has created a digital biomarker platform that offers solutions for the new era of personalised telemedicine.
/jlne.ws/3SBfJE1
Performance Bond Requirements: Energy - Effective October 25, 2022
CME
As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago Mercantile Exchange Inc., Clearing House Risk Management staff approved the performance bond requirements for the following products listed in the advisory at the link below. The rates will be effective after the close of business on October 25, 2022.
/jlne.ws/3TvvAVU
Stock Day: Buy stocks and ETFs fee-free; Deutsche Börse calls for share savings on October 28, 2022; Buy DAX shares and DAX ETFs free of charge on the Frankfurt Stock Exchange; Long-term capital formation with shares possible despite high inflation
Deutsche Börse
On Share Day on October 28, 2022, Deutsche Börse, together with several banks, is calling for people to save and invest in shares. As in previous years, investors can buy DAX shares and Exchange Traded Funds (ETFs) without any fees. The campaign was launched in 2015 to draw attention to long-term saving in shares and to strengthen the share culture in Germany.
/jlne.ws/3TUrR48
The Impact of ESG on Proxy Season and Proxy Voting
Nasdaq
Companies in all industries face growing pressure to implement credible strategies for addressing environmental, social and governance (ESG) issues. ESG-focused investors have become an increasingly influential force for change that most companies can no longer ignore. In fact, a 2022 MSCI report states that, "ESG investing has become a prevailing part of investing," and predicts that the trend will only grow stronger. But companies also face increasing regulatory scrutiny of ESG issues as well as legal risks, according to Business Law Today. Yet, with more reasons than ever to improve ESG disclosures, even well-motivated companies may not make full use of a basic tool for telling their ESG stories to their most active and engaged investors: the proxy statement.
/jlne.ws/3Fgh6oM
TAIFEX Re-Granted CFTC's Commission Certification for TAIEX Futures and Mini-TAIEX Futures contracts
TAIFEX
The Taiwan Futures Exchange's (TAIFEX) TAIEX Futures (TX) and Mini-TAIEX Futures (MTX) contracts received Commission Certification from the U.S. Commodity Futures Trading Commission (CFTC) on October 24, and can now be offered and sold to U.S. persons.
/jlne.ws/3TQ5EnG
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | CQG, Lime Trading Corp. Build on Relationship to Give CQG Clients Ready Access to U.S. Equity Venues and Trade Execution
CQG
CQG, a leading global provider of high-performance technology solutions for traders, brokers, commercial hedgers and exchanges, and Lime Trading Corp. (Lime), a technology-driven agency-only execution broker-dealer, today announced an expansion of the firms' partnership that leverages the expertise and technology that each company brings to the table. CQG's front-end trading platforms are now integrated and certified into Lime's back end for trade execution, giving CQG institutional and retail clients the ability to seamlessly access Lime's low-latency execution services and gateways to a full range of U.S. exchanges and dark pool venues for equity trading.
/jlne.ws/3Duf6ru
Andreessen Bets on The Coterie, Eyeing Tech's Young and Wealthy; Startup gives access to Coatue and other venture funds; The Coterie has about $500 million in assets under management
Gillian Tan - Bloomberg
Andreessen Horowitz led a $40 million funding round for The Coterie, valuing the financial technology platform at more than $100 million. In the year since its launch, The Coterie has amassed roughly $500 million in assets under management, Chief Executive Officer Ethan Agarwal said in an interview. The idea behind the San Francisco-based company was hatched when Agarwal -- then the founder and CEO of fitness app Aaptiv -- faced challenges obtaining a mortgage after forgoing his salary.
/jlne.ws/3TOX1tA
How financial technology may alter your relationship with banks and brokers over the next 10 years
Grant Easterbrook - MarketWatch
A decade has passed since a burst of innovation began to push fintech into the mainstream. Banking on a smartphone, sending cash via peer-to-peer payment services and using automated portfolio managers were once exotic, relatively niche services then, but are commonplace today. What changes are coming in the next 10 years? Fasten your seat belt as we take you on a tour of tomorrow.
/jlne.ws/3zacUTG
BMLL secures USD 26 million Series B Funding; Fundraise led by Nasdaq Ventures, FactSet and IQ Capital's Growth Fund to fuel BMLL product and geographic expansion
BMLL
BMLL, the leading, independent provider of harmonised, historical Level 3 data and analytics across global equity and futures markets, today announced it has secured a USD 26 million Series B investment in its latest funding round. The round was led by Nasdaq Ventures, FactSet and IQ Capital's Growth Fund, supported by ACF Investors and other new and existing investors.
/jlne.ws/3DuvZ5i
Crypto Custodian Fireblocks Furthers Push Into Payments With Tools Suite
Elizabeth Napolitano - CoinDesk
Fireblocks has launched a suite of tools to facilitate customer and vendor adoption of cryptocurrency payments regardless of their location, the crypto custodian said Monday. The Fireblocks Payments Engine is intended to allow the company's clients to process digital payments more quickly and securely, offering merchants immediate access to fiat-to-stablecoin conversion for customer payments. By circumventing traditional banking networks, the product would enable users sending funds abroad to convert money from one fiat currency to another in minutes instead of days and for lower fees.
/jlne.ws/3z8bbOD
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| Cybersecurity | | Top stories for cybersecurity | Cybersecurity teams are reaching their breaking point. We should all be worried
Owen Hughes - ZDNET
Cybersecurity professionals are "reaching their breaking point" as ransomware attacks increase and create new risks for people and businesses. A global study of 1,100 cybersecurity professionals by Mimecast found that one-third are considering leaving their role in the next two years due to stress and burnout.
/jlne.ws/3DrAOwn
Can developers reduce open source cybersecurity risk?
Security Magazine
Ninety-six percent of open source Java downloads with known cybersecurity vulnerabilities could have been avoided because a better version was available, but was not used, according to a new report. The eighth annual State of the Software Supply Chain Report from Sonatype found a massive surge in open source supply, demand and malicious attacks, in addition to legacy open source downloads leading to vulnerability exploitation.
/jlne.ws/3Dwir9I
Cybersecurity Startup Snyk Lays Off 198 Workers
Joseph F. Kovar - CRN
Cybersecurity startup Snyk Monday unveiled a second round of layoffs this year, making it the latest in a string of security vendors to shed employees. Snyk CEO Peter McKay, in a blog post published Monday, told its staff that the company is restructuring and reducing its global workforce by 198 employees, or about 14 percent of its total workforce.
/jlne.ws/3TRzhoz
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| Cryptocurrencies | | Top stories for cryptocurrencies | Celsius Stockholders Lose Bid for Official Bankruptcy Committee
Jeremy Hill - Bloomberg
US Bankruptcy Judge Martin Glenn dealt a blow to Celsius Network's stockholders on Monday, ruling against their motion to form an official committee of equity holders as they seek to stake a claim to the crypto lender's most valuable assets. The ruling means holders of Celsius's preferred equity will have to pay for their own lawyers and advisers during the bankruptcy. Venture capital firm WestCap Management LLC and pension fund Caisse de Depot et Placement du Quebec (CDPQ) are among the company's stockholders.
/jlne.ws/3TNDGtn
Lower Volatility Confounds Crypto Traders Used to Yo-Yo Swings; Bitcoin, Ether confound with narrow moves, less vol: Acheson; Average spread between highs and lows for crypto has narrowed
Vildana Hajric - Bloomberg
In contradiction to its usual tempestuousness, Bitcoin and some other cryptocurrencies have become less choppy, stupefying market-watchers who've long known them for their volatility. The average spread between the past month's peak and trough across the 10 largest digital assets has only been around 23%, according to data compiled by Bespoke Investment Group. Since late 2017, no other period has seen this level of serenity. Since the start of 2020, in fact, the average reading was in a range of over 80%, the researcher said.
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Struggling Bitcoin Miners Are Flocking to Maple Finance's $300M Lending Pool
Ian Allison - CoinDesk
Bitcoin miners are queuing up to borrow from a special purpose decentralized finance (DeFi) lending pool created by Maple Finance, as a stressed out crypto industry explores creative ways to get through the bear market. Since Maple and credit agent Icebreaker launched the miner finance pool a month back, a pipeline of about six to 10 mining companies is in place to form the first cohort of borrowers, with another 25 on the waiting list, according to Maple Finance CEO Sidney Powell.
/jlne.ws/3N4tNEL
MakerDAO Members Support Founder's 'Endgame' Plan to Break Up into MetaDAOs, $2.1B of Transfers
Krisztian Sandor - CoinDesk
Community members of MakerDAO, the largest decentralized finance (DeFi) protocol, voted to move forward with founder Rune Christensen's bold plan to overhaul how the protocol works and make it more decentralized. The results, announced Monday, mean that MakerDAO is set to break up into smaller, allegedly more decentralized units called MetaDAOs.
/jlne.ws/3N3sjL6
Tel Aviv Stock Exchange to Set Up Platform for Digital Assets
Sandali Handagama - CoinDesk
The Tel Aviv Stock Exchange (TASE), Israel's sole public trading platform for equity and debt, is looking to set up a blockchain-based digital asset trading platform, according to a strategy document published Monday. Establishing the platform is one of four goals outlined in the document, which lays out the institution's road map for the next five years. The TASE is looking to "promote the implementation of innovative technologies" and will explore the use of distributed ledgers (DLT) for immutable record-keeping, tokenization and smart contracts (which can be used to execute crypto trades) to improve existing markets infrastructure, and offer digital asset "services and products."
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Fidelity Ramps Up Hiring for Its Crypto Business
Tom Taulli - Barron's
Fidelity Ramps Up Hiring for Its Crypto Business
Over the next three to six months, the firm plans to hire 100 employees for its Digital Assets division, bringing the total to about 500 staffers. This business unit, which launched in 2018, provides custody and trading services for crypto investments. "Fidelity Digital Assets is in a unique position to offer exposure to the dynamic, emerging sector that is digital assets with the stability of a well-established and well-diversified enterprise," a Fidelity spokesperson said in an emailed statement to Barron's Advisor.
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Apple Issues New App Store Rules for Crypto and NFT Payments; Crypto-exchange apps need to have necessary regional licenses; NFT sales have to go through Apple's in-app purchase system
Vlad Savov - Bloomberg
Apple Inc. updated its App Store guidelines Monday with new and clearer language explaining its policy toward cryptocurrency trading and non-fungible tokens. The Cupertino, California-based company has no issue with crypto exchanges or any other apps that allow the trading of digital tokens and currencies -- provided those exchanges have the requisite regional licenses to operate where the app is distributed.
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NFT Royalties May Be 'Dwindling,' Galaxy Digital Researcher Says
Fran Velasquez - CoinDesk
Nearly $2 billion in royalties have been made on non-fungible token (NFT) marketplaces, but most creators have shared only a fraction of that amount, according to Galaxy Digital Research Associate Salmaan Qadir. What's more, Qadir told CoinDesk TV's "First Mover," the market for royalties may be dwindling.
/jlne.ws/3f1vl5X
Court Refuses to Dismiss 'Insider-Trading' Case Against Former OpenSea Exec
Nikhilesh De - CoinDesk
A federal indictment of Nate Chastain, a former head of product at NFT (non-fungible token) marketplace OpenSea, can proceed, a federal judge ruled Friday. Chastain was indicted in June on allegations of insider trading, and charged with wire fraud and money laundering. Chastain filed a motion to dismiss the charges in August, arguing that the government didn't have enough evidence to support a money-laundering charge and that he didn't "misappropriate" information. He thus couldn't be charged with wire fraud, he argued, and also couldn't be charged with insider trading because the NFTs he allegedly traded were neither securities nor commodities under the relevant part of the law.
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EU Antitrust Officials Worried About Metaverse Competition
CoinDesk
Officials from the European Union's antitrust authority said metaverse companies could limit users' choice and raise prices if they grow to dominate the market. CoinDesk Regulatory Reporter Jack Schickler explains why the officials worry that tech giants like Meta could choke metaverse competition.
/jlne.ws/3D8m4kr
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| Politics | | An overview of politics as it relates to the financial markets | Warren, Ocasio-Cortez Ask Regulators to Clarify Stance on Crypto Hires
Jamie Crawley - CoinDesk
U.S. Senator Elizabeth Warren (D-Mass.) and Representative Alexandria Ocasio-Cortez (D-N.Y.) have asked regulators to clarify their rules on former employees taking roles in the crypto industry. In a letter sent to almost all federal financial regulators, the lawmakers noted "the increasing number of revolving door hires" and asked how long individuals involved in regulating the crypto industry are barred from seeking employment in it.
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Colony's Barrack Testifies Trump Presidency Was 'Disastrous' for Him; Colony Capital founder distances himself from longtime friend; Barrack is testifying in own defense at foreign-agent trial
Patricia Hurtado and David Voreacos - Bloomberg
Tom Barrack testified that his support for longtime friend Donald Trump's presidency proved "disastrous" for him and his business and suggested it was also the reason he's on trial for allegedly acting as an agent of the United Arab Emirates. The Colony Capital LLC founder spoke about Trump, for whom he campaigned in 2016 and served as inaugural committee chair, while testifying in his own defense in federal court in Brooklyn, New York. Barrack, 75, called Trump "bold, smart, instinctively brilliant and more resilient than anybody that I ever knew" but also said he expected his friend to become more "moderate" in office.
/jlne.ws/3smMQRr
Yellen Flags Potential for Buybacks of Treasury Securities; Treasury chief notes relative illiquidity in 20-year bonds; Yellen notes that other nations conduct buyback operations
Christopher Condon - Bloomberg
Treasury Secretary Janet Yellen flagged the potential for buybacks of certain US government securities, after her department quizzed market participants on the potential for the maneuver to improve liquidity in the market. "It's something a number of" other governments "have done from time to time," Yellen said in answering reporters' questions after an event in New York Monday. "I don't think it would be a main intervention tool we would use -- but it's conceivable that something could be done there."
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London's No. 10 Downing Street Gets Its First Billionaire Residents; His wife Akshata Murty is a billionaire due to Infosys stake; Family wealth has already created political difficulties
Benjamin Stupples and Saritha Rai - Bloomberg
Rishi Sunak's elevation to the top of UK politics brings a number of firsts. He's the youngest prime minister in more than two centuries; the first Hindu to hold the office; and he will -- in nominal terms -- be Britain's wealthiest prime minister. His spouse Akshata Murty is the reason he's part of the first billionaire family atop British politics, with investments spanning everything from a luxury furniture marketplace to an outfitter for students of Eton College.
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Sunak as UK PM Reinforces Goldman's Hold on G-7 Top Jobs
Simon Kennedy and Demetrios Pogkas - Bloomberg
Since the end of 2005, there have been only days in which a Goldman Sachs alumnus didn't hold the position of prime minister, finance minister or central bank chief in a G-7 country.
/jlne.ws/3gCvwVM
Sunak to Become UK Prime Minister Tuesday After Meeting Kin
Stuart Biggs - Bloomberg
Conservative Party leader Rishi Sunak will formally become UK prime minister on Tuesday following a meeting with King Charles III, Downing Street said late Monday in an emailed statement outlining provisional timings. Outgoing Prime Minister Liz Truss will chair a meeting of Cabinet and make a statement outside 10 Downing Street at about 10:15 a.m., according to the statement. She will then travel to Buckingham Palace to meet the monarch.
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New Premier Sunak Warns UK Faces 'Profound Economic Challenge'; Mordaunt's concession gifted victory to Sunak in Tory contest; Rapid turnaround for former chancellor who lost last race
Joe Mayes and Stuart Biggs - Bloomberg
Rishi Sunak warned the UK faces a "profound economic challenge" as he prepares to take power after emerging victorious in the race to succeed Liz Truss as prime minister. In a short address just hours after Penny Mordaunt pulled out of the race for 10 Downing Street leaving the route clear for him, the former Chancellor of the Exchequer, 42, vowed to make it his "utmost priority" to unite both the nation and his warring Conservative Party. "I will work day in and day out to deliver for the British people," he said.
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Rishi Sunak: The super-rich former banker who will be the first person of color to lead Britain
Ivana Kottasová and Luke McGee - CNN
Just seven short weeks ago, it looked as if it might be all over for Rishi Sunak. The former chancellor of the exchequer - the UK's title for its chief finance minister - made a high-stakes gamble. He launched an attack that helped to end Boris Johnson's premiership, put himself forward as his replacement, but ultimately lost to Liz Truss. Admitting defeat, he retreated to the parliamentary back benches. But in a sign of just how unpredictable British politics has become, Sunak has returned triumphant from the political wilderness to replace Truss, whose premiership imploded last week.
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How Will Insuring Russian Oil Work? 'We Don't Yet Properly Know'
Alex Longley - Bloomberg
Just six weeks before European Union sanctions on Russian oil come into effect, insurers are still unclear as to exactly how they will work. At the heart of the uncertainty is a continued lack of detail surrounding US-led plans, endorsed by other members of the Group of Seven, to cap the price of Russian oil exports. That mechanism could override planned EU curbs -- due to come into effect on Dec. 5 -- that will bar access to financial services, including insurance, which are vital for the global transport of crude oil.
/jlne.ws/3Fb7wDk
EU cautions against gas price cap for electricity - document
Kate Abnett - Reuters
The European Commission has warned countries that an EU-wide cap on the price of gas used to produce electricity could cause an increase in gas use and exports of EU-subsidised electricity, according to a document seen by Reuters.
/jlne.ws/3stCO0O
Vulnerable Yen's Bigger Problem Now Importers Not Speculators; Japan is on course for record trade deficit this year; Speculative trading seen easing while importer impact weighs
Chikako Mogi and Mary Biekert - Bloomberg
As Japanese authorities intervene to rescue the weakening yen from the clutches of foreign speculators, the bigger risk to further declines lies closer to home -- importers. Japan's need for foreign goods -- from natural gas to oil to foodstuffs -- creates constant demand for dollars that is insensitive to yield differentials, technical levels and expectations for monetary policy. Even if speculative traders stepped out of the market, trade flows are enough to continue to pressure the yen, especially amid reduced liquidity and high hedging costs, according to analysts.
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Era of Negative-Yielding Debt Close to End as Japan Yields Rise; Two-year yield set to climb to zero for first time since 2015; Bank of Japan scheduled to announce rate decision on Friday
Masaki Kondo - Bloomberg
The era of negative-yielding global bonds looks tantalizingly close to an end with Japan's two-year yield on the cusp of breaking above zero for the first time since 2015. The short-dated yield climbed to minus 0.005% Monday, reflecting growing bets that the Bank of Japan may be forced to follow global peers and tighten policy as price pressures increase and the yen slumps to a 32-year low. The BOJ meets later this week and while economists see no change to policy, wagers on a tweak have ramped up this month.
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| Regulation & Enforcement | | Stories about regulation and the law. | 'The million-dollar question': CFTC chair on regulating crypto alongside the SEC
Leo Schwartz - FORTUNE
Speaking at a Rutgers Law, Wall Street Blockchain Alliance, and Lowenstein Sandler event in Manhattan on Monday, Commodity Futures Trading Commission Chair Rostin Behnam sought to dispel the narrative of a turf war between his agency and the Securities and Exchange Commission. "It's a pretty cynical view to suggest two agencies can't figure it out and work together," he said to an audience of lawyers and industry leaders.
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UK regulator warns over Big Tech's growing interest in finance; Financial Conduct Authority says Silicon Valley's resources might harm competition and disadvantage others
Tim Bradshaw - Financial Times
The UK financial regulator has warned that Big Tech's growing interest in payments, lending and other finance products might harm competition and leave traditional providers at a disadvantage. The Financial Conduct Authority is launching an inquiry this week into moves by Apple, Amazon, Google and Facebook's parent Meta into retail financial services. It is asking the Big Tech companies, their partners and potential rivals for their views on Silicon Valley's expansion into payments, deposits, credit and insurance.
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Greenwashing faces fresh curbs in UK regulator's crackdown; FCA rules will govern terms such as ESG in fund marketing and will affix consumer labels to sustainable investments
Joshua Oliver and Chris Flood - Financial Times
The UK's financial regulator has moved to clamp down on "greenwashing" with proposed restrictions on investment managers using terms such as "green" and "ESG" in fund marketing and a new set of consumer-friendly labels for sustainable investments.
/jlne.ws/3gyf1Kh
SEC Charges Canadian Cannabis Company and Former Senior Executive with Accounting Fraud
SEC
The Securities and Exchange Commission today charged Cronos Group Inc., a Nasdaq-listed cannabis company based in Toronto, for improperly accounting for millions of dollars of revenue and for other accounting misconduct in multiple reporting periods. The SEC also charged Cronos's former Chief Commercial Officer, William Hilson, with fraud and aiding and abetting the company's violations. In agreeing to settle with Cronos, the Commission determined that the company should not incur a financial penalty, given its timely self-reporting, significant cooperation, and remediation.
/jlne.ws/3SzCHLF
SEC Names Jason J. Burt as Regional Director of the Denver Office
SEC
The Securities and Exchange Commission today announced that Jason J. Burt has been named Regional Director of the Denver Office, where he has served as Acting Co-Director since July. "I am pleased that Jason will head the Denver Regional Office after an effective term as Acting Co-Director," said SEC Chair Gary Gensler. "In this new role, Jason will draw upon his extensive experience in working across the Divisions of Enforcement and Examinations. I also would like to thank Tom Piccone for his commitment and excellent service as Acting Co-Director."
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"Competition and the Two SECs" Remarks Before the SIFMA Annual Meeting
Chair Gary Gensler - SEC
Thank you, Ken [Bentsen]. As is customary, I'd like to note that my views are my own, and I'm not speaking on behalf of my fellow Commissioners or the SEC staff. 1933 was an important year in SEC history. No, I'm not referring to the passage of the first federal securities law. I'm not actually referring to the Securities and Exchange Commission at all. I mean the other SEC: you know, the Southeastern Conference.
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SEC Obtains Final Judgment Against Investment Advisers Charged with Defrauding Their Advisory Clients
SEC
On October 13, 2022, the Securities and Exchange Commission obtained a final judgment against defendants Cetera Advisors, LLC and Cetera Advisor Networks, LLC, whom the SEC previously charged with defrauding their advisory clients by failing to disclose several sources of compensation.
/jlne.ws/3zcDGuD
FCA proposes new rules to tackle greenwashing
FCA
In a bid to clamp down on greenwashing, the Financial Conduct Authority (FCA) is proposing a package of new measures including investment product sustainability labels and restrictions on how terms like 'ESG', 'green' or 'sustainable' can be used.
/jlne.ws/3Dun57Q
ASIC sues BPS Financial for alleged misleading statements about crypto-asset Qoin
ASIC
ASIC has commenced civil penalty proceedings in the Federal Court against BPS Financial Pty Ltd (BPS) for allegedly making false, misleading or deceptive representations and engaging in unlicensed conduct in relation to a non-cash payment facility involving a crypto-asset token called Qoin (the Qoin Facility).
/jlne.ws/3Nb1TXR
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | A $5 Trillion 'Wealth Shock' Is Cracking Americans' Nest Eggs; Outsized wealth gains that worsened inequality now in reverse; Housing downturn seen having broader impact as rates surge
Ben Steverman - Bloomberg
The world's richest nation is waking up to an unpleasant and unfamiliar sensation: It's getting poorer. Americans' collective net worth had been climbing at a dizzying rate for the past two years, even as families and businesses contended with the ravages of Covid-19. Households piled up an extra $38.5 trillion from early 2020 to the end of last year, bringing their collective net worth to a record $142 trillion, the Federal Reserve estimates.
/jlne.ws/3N1BCLr
Two-Cent Venezuela Bonds Lure Traders Hunting Lottery-Like Score; European, Latin America funds are taking a flyer on the debt; Payoff could be enormous when notes finally get restructured
Nicolle Yapur and Maria Elena Vizcaino - Bloomberg
It's one of the most outlandish bets in global credit markets: Buying up defaulted bonds sold by a country under sanctions that leave US investors locked out of the market. Yet, for traders willing to take on the risk, there's simply too much money to be made to pass up debt that trades for as little as 2 cents on the dollar. Somewhat akin to buying a lottery ticket, a handful of Latin American and European funds are dipping their toes into Venezuelan securities, encouraged by signs of thawing tension between Washington and Caracas.
/jlne.ws/3zcdlwE
VIX's Tandem Swings With S&P 500 Show Options Obsession Persists; Set for second-highest annual tally of paired moves since 2006; Thin positioning fuels chasing gains despite macro murkiness
Lu Wang - Bloomberg
Alongside all the other strange things happening in markets this year is the VIX's increasing propensity to move in the same direction of equities. It's a previously rare occurrence that happened again Monday. As the S&P 500 climbed more than 1%, the Cboe Volatility Index -- a gauge of options prices tied to the stock index that typically falls when anxiety among investors recedes -- also advanced.
/jlne.ws/3DtbV3l
Tesla Options Hint at Trouble Ahead With Bets Around $200; Puts with a $200 strike that expire on Friday are most traded; Option implies more than 5% downside from Monday's close
Elena Popina and Esha Dey - Bloomberg
Tesla Inc. was one of the biggest laggards in the S&P 500 Index on Monday, and options traders are betting the stock could drop further before the weekend. A put contract with a Friday expiration and a strike price of $200 was the most-traded contract for Tesla on Monday and among the 15-most popular on US exchanges overall during the day. The bearish option in the electric carmaker implies the stock has at least another 5% to fall this week.
/jlne.ws/3N3rZfo
Calgary Staff Who Left 'Toxic' Oil Brokerage Start a New Firm; Modern Commodities started brokering oil trades last week; Ex-NE2 staff are embroiled in lawsuits with former employer
Sheela Tobben, Geoffrey Morgan, and Robert Tuttle - Bloomberg
Staff members who exited a prominent Calgary-based oil firm at the center of multiple lawsuits have formed a new brokerage for trading Canadian and US crude. Modern Commodities Inc. began operation last week in Calgary and carried out its first trade on Wednesday, according to people familiar with the business. Mandy Burgess, a former executive at Calgary-based brokerage NE2 Group, is the chief executive officer, according to her LinkedIn profile.
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Copper Buyers Want Longer-Term Deals on Supply Concerns, Codelco Says; Chilean miner recently signed contracts for 3 to 5 years; Operational issues threaten Codelco's status as No. 1 producer
Jack Farchy and Mark Burton - Bloomberg
Copper buyers are so worried about future availability of the metal that they're seeking to secure longer-term deals than normal, according to top miner Codelco. The Chilean state-owned company recently signed some contracts for three to five years with customers in Europe, in contrast to the more standard annual deals, Chairman Maximo Pacheco said in an interview.
/jlne.ws/3TOxSPG
Global Junk-Bond Sales Drop Most Ever With No Signs of Recovery; Central bank rate hikes hindering prospects for transactions; Banks also reluctant to take on risk by underwriting deals
Giulia Morpurgo, Neil Callanan, and Olivia Raimonde - Bloomberg
Junk bond sales are falling at an unprecedented rate globally as interest rates rise, a double blow to riskier companies in need of financing in the next few years. Issuance for high yield corporates plummeted 73% through Oct. 24 compared with the same period last year, according to LEAG data compiled by Bloomberg.
/jlne.ws/3st8CTm
Amundi warns on hidden leverage in the financial system; Investment chief Vincent Mortier says UK pension debacle highlights 'shadow banking' risks
Harriet Agnew and Josephine Cumbo - Financial Times
Europe's largest asset manager has warned that the tremors in the UK pensions market should be a "wake-up call" to investors and regulators about the dangers of hidden leverage in the financial system. Vincent Mortier, chief investment officer at Amundi, which has €1.9tn in assets, said in an interview that the recent turmoil unleashed by the UK government's "mini" Budget was "a reminder that shadow banking is a reality. I don't believe that anyone before the crisis had any idea of the magnitude of this shadow banking in the pension fund industry."
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Dax set to lose most valuable company as Linde plans Frankfurt delisting; World's largest Industrial gas group says investors have been 'negatively impacted' by dual listing in Germany and US
Patricia Nilsson - Financial Times
Linde plans to delist from the Frankfurt Stock Exchange in a move that would result in Germany's Dax index losing its most valuable company. The world's largest industrial gas group said late on Monday that after "due consideration and analysis" it had determined that investors had been "negatively impacted" by the dual listing of its shares in New York and Frankfurt.
/jlne.ws/3gGzEnC
Lithium miner to create US-listed company as shortages hit electric cars; Australia-listed European Lithium will merge with Sizzle Acquisition
Harry Dempsey- Bloomberg
A lithium mining start-up is to create a US-listed company in a blank-cheque merger as a severe shortage of the metal has become the most serious supply chain bottleneck in the rollout of electric vehicles. European Lithium, which claims to have the region's first fully licensed lithium mine with deposits in Austria, is to merge with Sizzle Acquisition, a special purpose acquisition company, to create Critical Metal.
/jlne.ws/3gG5wst
Outperformance at risk in $4tn US muni bond market; Debt sold by state and local governments has avoided worst of fixed-income sell-off
Kate Duguid - Financial Times
In a bleak year for fixed-income markets, US municipal bonds issued by state and local governments have stood out as being among the least-bad assets to own. The outperformance is now looking more tenuous.
/jlne.ws/3TRH462
Why active management makes sense in bonds for institutions; Separately managed accounts outperform benchmarks in fixed income
Ellen Carr - Financial Times
The writer is a bond portfolio manager at Barksdale Investment Management and co-author of 'Undiversified: The Big Gender Short in Investment Management' Equity investors have been shifting away from actively managed funds to passive strategies for decades. Passification, if that is a word, has been slower to take off in fixed-income strategies, though.
/jlne.ws/3SAwUpl
Japan's yield curve control is "broken"; RIP YCC?
Robin Wigglesworth - Financial Times
All monetary eyes are on Japan at the moment, where the central bank's resolute commitment to mega-loose policy sticks out like a sore thumb. Deutsche Bank argues its yield curve control is now de facto dead. While most other central banks around the world have gotten their hike on in 2022, the Bank of Japan has stuck to its strategy of holding short term rates below zero and pinning the yield of the 10-year Japanese government bond market at or below 0.25 per cent.
/jlne.ws/3zcyVRK
Should we all get to trade Treasuries? An exhaustive look at the US government bond market structure and why people want to overhaul it
Robin Wigglesworth - Financial Times
Last month we wrote about how even mighty Pimco had come out in favour of all-to-all trading in the US Treasury market (among other things). An even more influential group of people have now come out in favour of it to "strengthen market resilience".
/jlne.ws/3Sxoxe3
Diamond Trading Firm Crafts Gemstones Into a Commodity; Diamond Standard envisions scenario akin to what happened once investors could buy and sell gold without hauling around bars of it
Ryan Dezember - The Wall Street Journal
A diamond is forever, but maybe not for much longer. Spot trading in commoditized clusters of diamonds started in September and the firm behind the electronic exchange aims to launch a futures contract next year on the Minneapolis Grain Exchange. An exchange-traded fund is next up in Diamond Standard Inc.'s plans to get the gems included in the indexes that steer commodity fund investments.
/jlne.ws/3W0Vwu3
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Whale Reunions, Green Hydrogen and Other Good News on the Climate; There have been some positive developments when it comes to the fight against climate change - no, really.
Leslie Kaufman - Bloomberg
Combating the climate crisis means taking on some of the most seismic challenges humanity has ever faced - and it'd be fair to say things aren't going as well as they could be. But all hope is not lost: The past few months offer up a number of positive climate developments. The US passed the Inflation Reduction Act, which, despite the name, contains the most sweeping climate measures in American history. Through tax credits and other incentives for renewable energy, electric vehicles and carbon capture and storage, the law aims to cut US greenhouse gas emissions to 40% below 2005 levels by 2030.
/jlne.ws/3FelBjF
Fed paper highlights importance of double materiality
Graham Caswell - Federal Reserve
A new paper from Federal Reserve supervision committee member Kevin Stiroh has found that the concept of double materiality is important for macroprudential objectives. In addition, incorporating double materiality into policy frameworks would lead to greater constraints on the "externalityâEURgenerating activities" that drive climate change. Defining double materiality as "the inclusion of feedback effects to bank risk that come from a bank's contribution to climate change", Stiroh uses a simple, partial equilibrium model to assess single and double materiality perspectives in the context of policy objectives. His analysis shows that double materiality can be coherently embedded in both micro and macroprudential frameworks, but is more practically significant at a systemic level. https://jlne.ws/3zdLv3f
Africa Cocoa Giants Snub Industry Talks to Protest Farmers' Pay; Top producers won't attend Brussels meetings on sustainability; Ivory Coast and Ghana produce two-thirds of the world's cocoa
Baudelaire Mieu and Yinka Ibukun - Bloomberg
Ivory Coast and Ghana, which account for two-thirds of global cocoa production, will boycott industry talks this week in a protest about poverty among West African farmers. The World Cocoa Foundation, a group representing 80% of the global market, will hold its 2022 Partnership Meetings in Brussels from Oct. 26 to 27 to discuss steps to improve farmer pay, combat child labor and end deforestation linked to cultivation of the crop. Representatives from the top two cocoa-producing nations will not be in attendance, according to officials from the West African countries.
/jlne.ws/3st6efm
What's in Your 401(k)? Polluters Driving Climate Change; The majority of retirement plans include fossil fuel investments. If you're worried about the carbon footprint of your savings, here's a step-by-step guide to shrinking it.
Zahra Hirji - Bloomberg
First, the bad news: Most 401(k) and other employer-sponsored retirement plans, as well as individual retirement accounts (IRAs), have at least some money invested in companies that contribute to fossil fuel extraction, deforestation or both. So the money sitting in your retirement kitty right now is very likely bound up with the climate crisis in some way. "There's 100 million people in the United States with $10 trillion in assets that have no idea that they're investing in their own destruction," estimates Andrew Behar, chief executive officer of the shareholder advocacy group As You Sow. "It's been completely hidden."
/jlne.ws/3FeKxri
EBA Publishes Report On The Integration Of ESG Risks In The Supervision Of Investment Firms
Mondo Visione
The Report provides an initial assessment of environmental, social and governance (ESG) factors and risks for the purposes of the prudential supervision of investment firms under the Investment Firms Directive (IFD). The objective of the Report is to set the foundations for further considerations of the ESG aspects in the supervisory review and evaluation process (SREP) of investment firms. This Report builds on and complements the EBA Report on management and supervision of ESG risks for credit institutions and investment firms published in June 2021. The European Banking Authority (EBA) today published a Report on how to incorporate ESG risks in the supervision of investment firms. The Report also provides an initial assessment of how ESG factors and ESG risks could be included in the supervisory assessment of investment firms.
/jlne.ws/3suxURk
HSBC Posts Profit Decline, Names Georges Elhedery as Finance Chief; Bank set aside $1.1 billion of provisions for expected credit losses
Josh Mitchell, Elaine Yu - The Wall Street Journal
HSBC HSBC -1.03%decrease; red down pointing triangle Holdings PLC reported a 46% drop in third-quarter profit and named a veteran banker as its new chief financial officer, putting him in the mix as a possible successor to the top job at the global banking giant. London-based HSBC, Europe's largest bank by market value, said profit was reduced by a one-time hit from the sale of its French retail unit. Profit was also damped because the bank socked away cash to prepare for potential pickups in bad loans in the U.K. and in China's property markets.
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Deutsche Bank Fund Unit Criticized for Fossil Finance in New Study; Greenpeace-commissioned study shows almost $8 billion exposure; DWS says divestment isn't the best path to decarbonization
Steven Arons - Bloomberg
Deutsche Bank AG's fund unit DWS has been singled out in a Greenpeace-commissioned study for its support of fossil fuels, with its portfolio estimated to align with temperature rises well above the critical threshold of 1.5C. DWS's investments in new fossil-fuel projects correspond to warming of 2.6C by 2050, according to estimates compiled for Greenpeace by climate researcher Right Based on Science. The study follows an analysis published by Greenpeace last week, showing that DWS has invested €7.8 billion ($7.7 billion) in companies that plan to increase extraction of coal, gas and oil. That's more than three times as much as any of its domestic competitors, Greenpeace said on Tuesday.
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BlackRock Is Getting Used to Being in the ESG Crossfire; Republicans have been ramping up their attacks on the money manager-but so have progressives
Tim Quinson - Bloomberg
The strategy started gaining real attention in May after former Vice President Mike Pence criticized investor-activist campaigns aimed at forcing fossil-fuel giant Exxon Mobil Corp. to follow socially conscious investing principles. The potential 2024 presidential candidate said they elevate "left-wing" goals over the interests of businesses.
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Wind power executives worry over US offshore ambitions; Permit hurdles, lease costs and equipment inflation challenge goal of 30 gigawatts by 2030
Myles McCormick - Financial News
The Biden administration wants to spark an American offshore wind power boom, growing the industry from less than 1 gigawatt today to 30GW by the end of the decade - enough to serve 10mn homes. But executives are increasingly concerned that a myriad challenges facing the sector are pushing that target beyond reach: permitting is too slow, leases are too expensive, equipment is in short supply and inflation is soaring, they say.
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Credit Suisse Nears Sale of Securitized-Products Group; Two bidding groups are vying for a unit that doesn't fit the bank's new shape
Justin Baer, Julie Steinberg and Margot Patrick - The Wall Street Journal
Credit Suisse Group AG increase; green up pointing triangle is racing to finalize the sale of a key unit, days before the beleaguered Swiss bank is set to give details of a revamp of its big Wall Street division. The Swiss bank is selling billions of dollars worth of assets to help pay for a strategy change after a series of financial losses and scandals. It may still need additional capital to add comfort for investors that it can carry out plans to retreat from some businesses and countries that are no longer deemed core, analysts say.
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PBOC Adjusts Cross-Border Borrowing Rules to Allow More Inflows
Bloomberg
China's central bank adjusted rules to allow companies to borrow more from overseas, enabling more foreign capital inflows at a time when the currency is plunging to fresh 2008 lows against the dollar. The People's Bank of China raised the so-called macro-prudential parameter for companies and banks' cross-border financing to 1.25 from 1, in order to increase their source of funding, the central bank said in a statement Tuesday. Raising the parameter would allow companies to borrow more from overseas markets.
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Wall Street Warns of Trouble Brewing in Auto Loans as Prices Dip; Red flags show up in Wells Fargo, Ally, Fifth Third results; 'We still feel really good about new loans,' Ally CEO says
Jennifer Surane and Max Reyes - Bloomberg
The largest US banks are warning of trouble ahead in auto loans as dropping prices for used cars risk leaving borrowers underwater. Wells Fargo & Co. said that higher loss rates for loans it originated late last year contributed to an increase in write-offs for the period. Ally Financial Inc., the country's second-largest auto lender, saw charge-offs for retail auto loans quadruple in the third quarter. And Fifth Third Bancorp said it's pulling back on originations.
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UBS Weathers a Bumpy Quarter to Continue Share Buybacks; Swiss bank's net profit slumped, but rich clients channeled new money to the bank
Margot Patrick - The Wall Street Journal
UBS Group AG UBS 1.67%increase; green up pointing triangle reported a 24% decline in third-quarter net profit as corporate deal making slowed and its wealthy clients pulled back on investments. Revenue was down 19% at UBS's investment bank and by 4% in its wealth management arm, with some of the reduced activity offset by gains from selling two businesses. Net profit was $1.73 billion for the quarter, more than the $1.5 billion analysts had expected.
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Swiss Billionaire's Firm for Hedge Fund Bets Taps World's Rich; Kedge Capital, which invests in private equity and hedge funds for Ernesto Bertarelli and his family, is seeking to raise more than $1 billion.
Benjamin Stupples - Bloomberg
An investment firm for one of Switzerland's richest people is seeking to raise money from other members of the world's ultra-wealthy. Kedge Capital, which invests in private equity and hedge funds for Ernesto Bertarelli and his family, plans to raise more than $1 billion to expand its business, according to people familiar with the matter. The Bertarellis will provide a large portion of the capital, with the firm targeting other rich families and individuals with long-term investing outlooks for the rest, the people said, asking not to be identified as the details are private.
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Covid-19 Tied to Higher Risk of Deadly Blood Clots in Large Study; Clots more common in Covid patients across severity spectrum; Study shows virus's propensity to stoke cardiovascular disease
Jason Gale - Bloomberg
Covid-19 at any level of severity is linked to an increased risk of dangerous blood clots that start in patients' veins and travel to the heart, lungs and other parts of the body, according to a UK study that highlights the pandemic's role in driving up rates of cardiovascular disease. Non-hospitalized Covid patients were 2.7 times more likely to develop dangerous clots called venous thromboembolisms and were more than 10 times more likely to die than individuals who avoided the disease, scientists at Queen Mary University of London found in a study of almost 54,000 people followed for an average of about 4 1/2 months. The increase in risk was highest in the first 30 days after the disease began, but could remain elevated even longer, the researchers said.
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Omicron keeps finding new evolutionary tricks to outsmart our immunity
Rob Stein - NPR
Throughout the pandemic, the virus that causes COVID-19 has been evolving fast, blindsiding the world with one variant after another. But the World Health Organization hasn't given a SARS-CoV-2 variant a Greek name in almost a year, a move that's reserved for new variants that do or could have significant public health impacts, such as being more transmissible or causing more severe disease. That raises the question: Has the evolution of the virus finally started to ebb, possibly making it more predictable? The answer - according to a dozen evolutionary biologists, virologists and immunologists interviewed by NPR - is no.
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Men Died From Covid-19 at Much Higher Rate Than Women in Pandemic's First Year; Greatest difference between the genders was found in large central metropolitan areas, new report says
Talal Ansari and Jennifer Calfas - The Wall Street Journal
Men died of complications from Covid-19 at a higher rate than women in both rural and urban parts of the U.S. during the first year of the pandemic, according to a new federal report. The report, published Tuesday by the National Center for Health Statistics, examined Covid-19 deaths by sex and age groups for 2020, when the virus became the third-leading cause of death in the U.S. and before vaccines against it became widely available.
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Australian Wine Exports Slump 11% as China Tariffs Crimp Demand; China shipments fell 92% in year to Sept. 30: Wine Australia; Exports stable overall to other markets, despite headwinds
Keira Wright - Bloomberg
China tariffs, global freight snarls and changing consumer habits during the pandemic have caused an 11% slump in the value of Australian wine exports in the year to Sept. 30. Wine exports declined to A$2.01 billion ($1.3 billion), data from government marketing and research body Wine Australia show. The decline was largely driven by a 92% drop in exports to mainland China, following almost two years of sky-high tariffs which effectively shut the market to Australian shipments.
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Rishi Sunak's Billionaire Wife Akshata Murty Builds Ties to World's Super-Rich; Akshata Murty's family office is doing deals alongside powerful players in global business.
Benjamin Stupples - Bloomberg
Akshata Murty, the wife of UK Chancellor Rishi Sunak, has developed links to some of the world's richest families through her private investment firm, Catamaran Ventures UK. Previously unreported filings show that Murty's family office was an early backer of dara5, a private investment community for "the next generation of global leaders," co-founded in 2019 by a member of Qatar's ruling dynasty, the Al-Thani family.
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Rothschild Opens in Saudi Arabia With Key Hires to Tap Deals; Al Issa named head of Saudi Arabia; Mark Sedwill chairman; Firm plans to add more bankers in Riyadh amid flurry of deals
Nicolas Parasie - Bloomberg
Rothschild & Co. has made two leadership appointments for its new office in Saudi Arabia, people familiar with the matter said, marking the advisory firm's formal entry into one of the most promising investment banking markets globally. The Paris-based financial group named Nasser Al Issa as head of Saudi Arabia and Mark Sedwill as chairman, the people said, asking not to be named because the information is private.
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More Britons Forced on Pay-as-you-go Energy Meters as Costs Soar; That is prompting concern about self-disconnection over winter; Households will be 'plunged into darkness,' Uswitch.com says
Olivia Fletcher - Bloomberg
The use of prepayment energy meters is on the rise in Britain, causing concern that the poorest households may not be able to heat their homes this winter. The number of pay-as-you-go installations rose by 60,000 in the six months through March after previously dropping for nine quarters in a row, according to comparison site Uswitch.com. That means more consumers will rely on topping up power and gas accounts themselves instead of a paying via direct debit.
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Italy Approves Floating LNG Terminal in Bid to Cut Russian Gas; Regional government green lights project amid local opposition; Facility will be key to refill gas storages from spring 2023
Alberto Brambilla - Bloomberg
Gas network operator Snam SpA won approval to install Italy's newest liquefied natural gas terminal, overcoming local opposition and boosting the country's bid to improve energy security and wean itself off Russian supplies. The decision by a state-appointed commissioner cleared the process to install the Golar Tundra floating storage regasification unit that state-controlled Snam bought earlier this year, according to a statement. The facility, known as an FSRU, is due to go into operation in spring of 2023.
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Americans Fall Further Behind on Retirement Savings as Inflation Bites; A new survey found that 55% of people feel they haven't saved enough, and inflation is preventing them from doing so.
Suzanne Woolley - Bloomberg
More Americans are falling behind on retirement savings, and inflation is making it even harder to catch up. A new survey by Bankrate found that 55% of respondents feel their retirement savings are behind where they need to be, up from 52% last year. Among those putting aside the same or less than they did in 2021, more than half said rising prices are holding them back from saving more.
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