| December 14, 2023 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
John Lothian News | |
|
| | | | First Read | | |
| | 2023 Newsletter Subscriptions: | |
Hits & Takes
John Lothian & JLN Staff
Yesterday, representatives of the Folds of Honor charity rang the closing bell at Cboe Global Markets, along with those from the RiverNorth Patriot ETF (FLDZ) that contributes 90% of its management fees to the charity. The ETF moved to Cboe in December of 2022 from NYSE Arca.
The Folds of Honor charity benefits not only military families, but also first responders. Dan Rooney is the founder of Folds of Honor, and he hit the bell with the prosthetic leg of a veteran, who was beside him, who also pulled the clapper in the bell to close Wednesday's session.
After the session ended, Cboe played a video featuring Dan Rooney, which you can find on the front page of the Folds of Honor website, about the origin of the organization. This was the first time Cboe had played such a video after a bell ringing and the entire Cboe floor community stayed for the video, which is commendable.
MEMX shared the news that its new MEMX options traded 43,096 average daily contracts in November, up from 16,218 in October. It also said QQQ option products were added on November 28 and six more symbols (AAPL, AMZN, EEM, HYG, TLT, VXX) were rolled out on December 12.
Keith Andrew posted to LinkedIn that he is starting a new position as Co-Founder at Artian AI.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
*****
Our most read stories from our previous edition of JLN Options were:
- Zero-Day Options Are All the Rage, But Don't Forget the Lessons of Volmageddon from TheStreet.
- Citadel Sees Departure of Four Portfolio Managers from Bloomberg.
- The Presidential Election, Fed Policy, and Other Big Trends for the Options Market in 2024 from Barron's. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
++++
CQG's Expansion Strategies and AI Focus Unveiled in FIA Asia 2023 Interview
JohnLothianNews.com
In a recent interview at FIA Asia 2023, Patrick Kenny and John Co of CQG shared insights into their company's strategies and initiatives in the Asian markets in an interview with Robert . Lothian of John Lothian News.
Watch the video »
++++
Putin Says Russia Wants to Reach Agreement on Return of WSJ's Evan Gershkovich; Russian president says he hopes to 'find a solution' regarding Gershkovich and Paul Whelan, who are both in Russian custody
Ann M. Simmons and Kate Vtorygina - The Wall Street Journal
Russian President Vladimir Putin said that Russia wants "to reach an agreement" on the return of Wall Street Journal reporter Evan Gershkovich, who is currently in Russian custody on an allegation of espionage that he, the Journal and the U.S. government vehemently deny.
/jlne.ws/46XkH5k
**** Free Evan NOW!~JJL
++++
Wall Street Traders Go All-In on Great Monetary Pivot of 2024
Vildana Hajric, Jess Menton, Carter Johnson, and Elena Popina - Bloomberg
After clashing in recent years, Wall Street traders and the Federal Reserve are - for once - broadly in sync: The great monetary pivot is near as central bankers engineer a once-unthinkable soft landing in the world's largest economy. That's the big-picture takeaway after the Fed gave its clearest signal yet that its historic policy tightening campaign is over by projecting more aggressive interest-rate cuts in 2024 - in the process igniting one of the biggest post-meeting rallies in recent memory.
/jlne.ws/3v7jIlx
***** I have a theory about the Fed. They are all gold bugs. And when gold made a new all-time high, they decided it was time to pivot. ~JJL
++++
Wednesday's Top Three
Our top story yesterday, by a wide margin, was from Bloomberg via Yahoo Finance, Nasdaq Will Repurpose Tech From Curtailed Crypto Foray. Second was FINRA's story, Statement Before the Subcommittee on Capital Markets of the U.S. House of Representatives' Financial Services Committee. Third was Trading Technologies, Trading Technologies Announces New Dedicated Business Lines to Fuel Growth Across Asset Classes in 2024.
++++
++++
|
|  | | | |
 | |
| Lead Stories | Toronto Exchange Owner Buys ETF Index Firm in Financial-Data Strategy
Derek Decloet - Bloomberg
TMX Group Ltd., the owner of the Toronto Stock Exchange and other trading venues, agreed to buy an index provider to the exchange-traded fund industry, expanding deeper into financial data. TMX will pay $848 million to buy the 78% of VettaFi Holdings LLC that it doesn't already own, financing the deal with bank debt, according to a statement late Wednesday.
/jlne.ws/3tes0rr
Europe's stock exchanges face calls to reform fees to challenge Wall St
Sinead Cruise, Huw Jones and Samuel Indyk - Reuters
Top stock exchange operators in Europe are under pressure from some investors and brokers to trim and simplify their fees to build a deeper capital market that challenges Wall Street's allure to new company listings. The European Union has long sought to make its fragmented capital markets more efficient, with Britain also trying to find new ways to attract big-ticket IPOs since Brexit.
/jlne.ws/41nOwuz
Wall Street Makes Zero Progress in Energy Finance Transition; The industry needs to get to a 4-to-1 ratio of clean energy versus fossil-fuel financing. At the end of last year, it was 0.73 to 1-little changed from 2021.
Tim Quinson - Bloomberg
The world's largest banks are showing little or no progress when it comes to their promise to help the world avoid the worst consequences of global warming. According to researchers at BloombergNEF, the ratio of spending on low-carbon infrastructure relative to fossil fuels needs to reach 4 to 1 by 2030. At the end of last year, the so-called energy-supply banking ratio, which includes debt and equity underwriting, was 0.73 to 1-slightly worse than the 0.75-to-1 ratio reported in 2021.
/jlne.ws/4ao8fOX
EU and US at loggerheads over plans to launch new carbon credit market; Dispute centred on measures Brussels saw as watering down UN's proposed standards for trading system
Kenza Bryan - Financial Times
Plans to launch a market that incentivises countries to reduce their carbon emissions have hit a serious roadblock, after the US and the EU failed to resolve a disagreement over how closely the UN should police it. Climate negotiators at the COP28 summit in Dubai had been expected to endorse standards for the carbon credit market including those proposed by a UN supervisory body. It was widely anticipated that this could kick-start a mechanism for countries to pay compensation for their own emissions by investing in decarbonisation projects abroad.
/jlne.ws/3v8umsc
US CFTC OKs crypto firm Bitnomial's vertical integration plan
Reuters
The U.S. Commodity Futures Trading Commission on Wednesday voted to approve a plan from a Chicago cryptocurrency derivatives exchange and brokerage to also act as its own registered clearinghouse. The approval of the plan by Bitnomial, an exchange founded in 2014, marks the first time the commodities regulator has voted to allow a vertically-integrated market structure. Bitnomial also has exchange and broker licenses. Two Democratic and two Republican commissioners voted to OK the firm's application, while the third Democratic commissioner dissented.
/jlne.ws/3GIeEqt
SEC votes to expand central clearing in overhaul of $26tn Treasury market; Plans cover fewer trades than initially proposed in concession to hedge funds
Kate Duguid and Stefania Palma - Financial Times
US regulators on Wednesday voted to require more Treasury bond trades to be cleared centrally, a landmark reform aimed at bolstering the resilience of one of the world's most important financial markets. The Securities and Exchange Commission in Washington voted four to one in favour of a proposal that could require an additional $1tn of daily trades to be handled by an independent clearing house. That would mean market participants have to stump up collateral to back those positions or cap the amount they can borrow in so-called repo trades.
/jlne.ws/3t8zZGB
The SEC looks to help stabilize the $26 trillion Treasury bond market with new rules
Aruni Soni - Business Insider
After witnessing some shocks in the Treasury market, Wall Street regulators have passed new rules to keep a sharper eye on bond trades. In a 4-1 vote on Wednesday, the Securities and Exchange Commission backed the reforms, which would force more trades through an independent clearinghouse. "Today's final rules, taken together, will reduce risk across a vital part of our capital markets in normal times and stress times," SEC Chair Gary Gensler said.
/jlne.ws/3tjkATM
SEC Extends Deadline on Invesco and Galaxy Digital Spot Ethereum ETF to February 2024
Hope C - CoinMarketCap
The United States Securities and Exchange Commission (SEC) has announced a delay in its decision regarding the spot Ether exchange-traded fund (ETF) proposed by Invesco and Galaxy Digital. In a notice issued on December 13, the SEC stated that it would extend the period for consideration of a proposed rule change. This change would enable the Cboe BZX Exchange to list and trade shares of the Invesco Galaxy Ethereum ETF.
/jlne.ws/47T9kg3
Coinbase to Offer Spot Crypto Trading On International Exchange
Vicky Ge Huang - The Wall Street Journal
Coinbase Global, the largest cryptocurrency exchange in the U.S., announced Wednesday that it will launch spot crypto trading for non-U.S. institutional clients on its international exchange. Starting on Thursday, non-U.S. institutional clients will be able to trade spot bitcoin and ether against the stablecoin USD Coin on the Coinbase International Exchange. The company said it plans to expand the product to include retail users, additional assets, and features in the coming months.
/jlne.ws/47UOQU8
Asia-Pacific's ETF industry is taking off, says Invesco executive; Regional growth of up to 30% is faster than in Europe, says Tom Digby
Sinyi Au - Financial Times
The Asia-Pacific region has not only become the fastest-growing exchange traded fund market in the world, but distribution is reaching a broader range of clients than in the US or Europe, experts say. Speaking during an Ignites Asia webcast, Tom Digby, Invesco's head of ETF business development and capital markets for Asia-Pacific, said ETF assets in the region were growing at between 26 per cent and 30 per cent per year in countries from Australia to China to South Korea.
/jlne.ws/48hToDH
Trade associations file joint lawsuit opposing SEC securities reporting and short selling rules; The National Association of Private Fund Managers (NAPFM), Managed Funds Association (MFA), and Alternative Investment Management Association (AIMA) claim that the changes have not sufficiently considered the interconnectedness of the rules.
Claudia Preece - The Trade
NAPFM, MFA, and AIMA have filed a lawsuit to the US Court of Appeals following the US Securities and Exchange Commission's (SEC) adoption of two rules related to the requirements for reporting and public disclosure of securities loans and short selling activity. The associations are seeking to invalidate the two rules on the grounds that they are "arbitrary and capricious and will harm investors and markets," as described by Bryan Corbett, president and chief executive of MFA.
/jlne.ws/3RHEnFM
SEC adopts landmark new clearing rules for US Treasury market; Overhaul of the $26 trillion market is designed to reduce the risks faced by a clearing agency and incentivise additional central clearing.
Wesley Bray - The Trade
The Securities and Exchange Commission (SEC) has adopted major rule changes for the $26 trillion US Treasury market requiring more trades to be centrally cleared. The US watchdog is looking to bolster risk management practices for central counterparties in the US Treasury market and facilitate additional clearing of US treasury securities transactions through forcing some cash Treasury and repos to be centrally cleared.
/jlne.ws/482NzKQ
How Sam Bankman-Fried's 2023 meltdown put the crypto world on trial
Alexis Keenan - Yahoo Finance
It was exactly one year ago today when authorities arrested FTX founder Sam Bankman-Fried, alleging the billionaire defrauded customers, investors, and lenders. His criminal trial became one of Yahoo Finance's biggest stories of 2023. The face-off was important because of what Bankman-Fried represented. The 31-year-old entrepreneur was a prime beneficiary of the crypto world's meteoric rise in 2021 and the face of its fall in 2022 as digital assets collapsed and FTX's $32 billion empire imploded. He then became the most prominent target of a widespread government crackdown on crypto's biggest players that will likely remake the industry for years to come. Several of his rivals, including Binance CEO Changpeng Zhao, were also hobbled by law enforcement dragnets this year.
/jlne.ws/3Nq0Lkl
How the COP28 deal was won but the battle for 1.5C may be lost; Fossil fuel economies resist pressure from vulnerable countries needing financial assistance to deal with climate change
Aime Williams, Attracta Mooney and Alice Hancock - Financial Times
European diplomats fanned out across the expansive grounds of the futuristic conference venue in Dubai on Tuesday in a final push to galvanise support for a global agreement to dump fossil fuels. The most intense phase of the talks in the final days of the two-week-long UN COP28 climate summit exposed deep divisions between wealthy and poorer countries over the costs of halting new coal, gas and oil projects. Almost 200 countries on Wednesday signed a compromise agreement to transition from fossil fuels that some - including the group of 39 small island states that were not present for the outcome as they scrambled to gather their response - accused of not going far enough.
/jlne.ws/3tldONh
*****This story from Reuters and from Inside Climate News
Russia Seeks to Unite BRICS on Climate Initiatives After COP28; Russia will chair BRICS group of economies next year; The Economy Ministry said Moscow aims to boost renewables
Bloomberg News
As the COP28 talks wrapped up in Dubai, one of the world's energy heavyweights said it wants to rally a united front among a group of non-Western economies when confronting global climate issues. Russia's "task is to combine efforts and common approaches in the Eurasian space and in the BRICS space" when it comes to the climate agenda, First Deputy Economy Minister Ilya Torosov said in an interview Tuesday at the COP28 conference.
/jlne.ws/47YTpN6
|
| | | |
|
| |
| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Finland to Double Artillery Shell Production to Boost Defenses
Leo Laikola - Bloomberg
Finland will more than double the production of heavy ammunition to improve its ability to defend itself as well as to ensure long-term support to Ukraine.
/jlne.ws/3TiqKOC
Putin Vows to Push On With Ukraine War; As Russia's economy proves resilient to sanctions, the president vowed to continue his military campaign
Ann M. Simmons - The Wall Street Journal
Russian President Vladimir Putin vowed to press on with his war in Ukraine during an end-of-year audience in which he showed no sign of seeking a swift conclusion to the devastating conflict, saying there would only be peace once Russia had achieved its goals.
/jlne.ws/4ah0F8x
|
| | | |
|
| |
| Israel/Palestine Conflict | | News about the recent (October, 2023) conflict between Israel and Palestine | Defiance Launches First Israel Bond ETF Amid Gaza War
Carolina Wilson - Bloomberg
Defiance ETFs is launching the world's first exchange-traded fund tracking Israeli bonds, citing strong demand from investors even as the war in Gaza goes into its third month. The Defiance Israel Bond ETF, ticker CHAI, began trading in the US on Wednesday and tracks bonds issued by the Israeli government, government-related entities and local companies. The fund charges a fee of 48 basis points, in line with the average expense ratio for more specialized fixed-income ETFs, according to data compiled by Bloomberg.
/jlne.ws/3RfefAI
'Indiscriminate' or Not, Israel's Gaza Bombing Isn't Smart; Biden's claim is hard to judge given the difficulties of urban warfare and counting war deaths in real time.
Marc Champion - Bloomberg
On Tuesday, US President Joe Biden dropped the "I" word on Israel, describing its bombing campaign in Gaza as "indiscriminate." That's an important claim given the term's growing use to paint military actions as unlawful, and it didn't take long for Israel's habitual critics to jump on it: The US, tweeted former Human Rights Watch director Kenneth Roth, had just accused its ally of a war crime.
/jlne.ws/470jtpZ
|
| | | |
|
| |
| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Nasdaq Hit by Error Affecting Thousands of Trades, Nixing Some
Katherine Doherty - Bloomberg
Nasdaq Inc. was hit by a system error Wednesday that impacted thousands of stock orders, leading some to be canceled, according to people with knowledge of the matter. The exchange operator told market participants it's investigating an order-entry issue that caused inaccuracies and delays, the people said, asking not to be identified discussing a private matter. Nasdaq's electronic communication channel, which processes so-called financial information exchange or "FIX" messages, was affected, the people said.
/jlne.ws/47X4rCo
Nasdaq Says Trading Back to Normal After End-of-Day Glitch
Alexander Osipovich - The Wall Street Journal
Nasdaq says it expects its systems to function normally after a technical glitch hit the exchange on Wednesday afternoon. The glitch caused confusion among some traders who sought to buy or sell shares in the 4 p.m. closing auctions that set official end-of-day prices for Nasdaq-listed stocks. Some firms found that orders they entered in Nasdaq's closing auctions appeared to get stuck, leaving it unclear how the orders were executed, people familiar with the matter said.
/jlne.ws/3GJ4aXV
TMX Group expands data-driven analytics and indexing solutions through $848 million VettaFi acquisition; Subject to closing conditions, the transaction is expected to close in January 2024.
Wesley Bray - The Trade
Toronto-based stock exchange TMX Group has agreed to acquire the remaining 78% of the common units of index and data provider, VettaFi Holdings, for $848 million. Following the strategic investments TMX Group made in VettaFi is H1 2023 for 22% of the common units, the total amount to be paid for full ownership totals $1.03 billion.
/jlne.ws/3Tq6cDQ
DTCC Comments on SEC Ruling around Expanded US Treasury Clearing
DTCC
DTCC issued the following statement: The SEC recently issued rule amendments around its 2022 expanded U.S. treasury clearing proposal, bringing added regulatory clarity around the scope of the clearing requirements and implementation timelines. The final rules require a significantly larger portion of the U.S. Treasury cash and repo markets - specifically certain eligible secondary market transactions - to be centrally cleared by December 31, 2025 for cash transactions and June 30, 2026 for repo transactions. As a covered clearing agency, FICC will take the necessary steps as required under the amendments to prepare for this significant initiative.
/jlne.ws/3teviLj
TMX Group Announces Agreement to Acquire VettaFi
TMX Group
TMX invests to expand capabilities in data-driven analytics and indexing solutions for a global client base of issuers and advisors, announces analyst webcast and conference call on December 14, 2023 at 8:00am EST to discuss; TMX to acquire remaining ~78% of the common units of VettaFi for US$848 million; Deal accelerates long-term growth strategy as well as financial and transformational objectives; Increases proportion of revenue from recurring and global sources; Adds innovative new client service team and capabilities to GSIA, TMX's fastest growing segment. TMX Group Limited (TMX Group) today announced it has agreed to acquire the remaining approximately 78% of the common units of VettaFi Holdings LLC (VettaFi), a leading US-based, indexing, digital distribution, analytics and thought leadership company, for US$848 million ($1.15 billion*)âEUR‹. This brings the total amount to be paid for full ownership to US$1.03 billion ($1.40 billion*), which includes the strategic investments TMX Group made in VettaFi in the first half of 2023 for approximately 22% of the common units.
/jlne.ws/3RGGFFb
Nasdaq Welcomes 125 IPOs and 26 Exchange Transfers in 2023; Leading U.S. exchange by number of IPOs and proceeds raised for the fifth consecutive year; Featured the largest IPO, spin switch, switch, and SPAC combo switch; 3 of the top 5 largest global IPOs by proceeds raised listed on Nasdaq; $374 billion in market value switched to Nasdaq
Nasdaq
Nasdaq (Nasdaq: NDAQ) announced today that in 2023 it welcomed 125 initial public offerings (IPOs), raising a total of $13 billion. A total of 100 operating companies and 25 SPACs listed on Nasdaq this year, representing an 86%-win rate of Nasdaq-eligible IPOs in the U.S. market, and extending Nasdaq's leadership for the fifth consecutive year. In addition to IPOs, there were 26 exchange transfers to Nasdaq, totaling $374 billion in market value.
/jlne.ws/47emOlr
SIX Expects Strong Operating Result For 2023 - Reported Group Net Result Affected By Non-Cash Value Adjustments
SIX
SIX continues the positive operational trend seen in the first half and expects strong growth at EBITDA level for the full year 2023, benefitting from its diversified business. The reported group net result will be impacted by significant non-cash value adjustments (impairment) on the stake in Worldline in particular. SIX remains well capitalized and plans to propose a slightly higher dividend for 2023 than in the previous year. In a challenging market environment dominated by inflation and rising interest rates, SIX continues its positive operational trend and expects a revenue growth of approximately 3% at constant currencies for the full year 2023. Profitability at EBITDA level is expected to increase by 6%-7% at constant currencies, underlining the successful strategy and diversified business model of SIX.
/jlne.ws/3GNddH6
Deutsche Boerse Photography Foundation presents its annual program for 2024; Deutsche Boerse Photography Foundation will celebrate the 25th anniversary of the Art Collection Deutsche Boerse next year; The annual program for 2024 includes collection exhibitions in The Cube, Eschborn, a publication, awards as well as funding and exhibition projects with international partners.
Deutsche Boerse
On the occasion of the 25th anniversary of the Art Collection Deutsche Borse in 2024, the Deutsche Borse Photography Foundation is presenting an extensive and varied exhibition and event program. In the spirit of cooperation, dialogue and diversity - the three guiding principles for the anniversary year - the focus of the activities is on the diversity of voices within the collection and the exchange with artists and partner institutions from all over the world. The Art Collection Deutsche Borse is one of the most important international collections of contemporary photography. It was launched in 1999 and now includes over 2,300 works by around 160 artists from 35 nations. The Photography Foundation is responsible for the further development and presentation of the impressive collection.
/jlne.ws/3TqknZI
Trading Charity at the Frankfurt Stock Exchange brings in euro 90,000 in donations
Deutsche Boerse
With the "Trading Charity - Trade and Help" campaign, Deutsche Boerse and the securities trading banks (specialists) active on the Frankfurt trading floor raised a donation of euro 90,000. The exchange operator and the eight specialists support a total of four non-profit institutions: the Frankfurter Tafel, the newly founded inclusive football club Eintracht Hattersheim, the ASB-Wunschewagen and KiNiKi gAG, which supports children and young people in difficult situations.
/jlne.ws/3RGBCo2
ICE and Blockstream Add Cryptocurrency Options Data to Joint Crypto Offering on the ICE Consolidated Feed
Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology and market infrastructure, and Blockstream, a leader in blockchain technologies and financial cryptography, today announced the addition of cryptocurrency options data to the Cryptocurrency Data Feed offered via the ICE Consolidated Feed. Launched by ICE and Blockstream in 2018, the Cryptocurrency Data Feed offers real-time cryptocurrency information and includes data on over 100 cryptocurrencies from more than 30 globally sourced venues and exchanges. As part of ICE's exclusive agreement with Blockstream, ICE offers extensive coverage of prices and order book data for cryptocurrencies by exchange.
/jlne.ws/47WIK5o
Warranting And Trading Of Russian Metal On The LME
London Metal Exchange
Summary 1. This Notice sets out the LME's understanding of the recently introduced UK sanctions on Russian metals. These sanctions reflect the UK Government's policy to restrict UK Persons1 from engaging with Russian metals. In summary, the LME does not anticipate these sanctions impacting trading access to the LME; however, it will be important for market participants (especially those with a UK nexus) to fully understand the new sanctions regime.
/www.lme.com/en/News
LSEG Empowers the Modernization of Mauritania's Financial Markets Through Innovative Collaboration with BCM
LSEG
(London Stock Exchange Group) has been selected by the Banque Centrale de Mauritanie (BCM) to support its Financial Infrastructure Modernization Programme, a project financed by the African Development Bank. This transformative initiative is set to transfigure Mauritania's financial landscape by upgrading its primary and secondary trading workflow and infrastructure. This shift will encompass auctions, interbank trading, price discovery, and market surveillance, offering robust reporting capabilities to the central bank.
/jlne.ws/48jn3N0
Self-Certification; Amendments To The Rules Of Bourse De Montreal Inc. To Introduce Reference Rate Fallback Procedures
Bourse De Montreal
On October 24, 2023, the President and Chief Executive Officer of Bourse de Montreal Inc. (the "Bourse") approved amendments to the rules of the Bourse (the "Rules") in order to include fallback procedures for benchmark reference rates, namely to modify the settlement price procedure for Three-month Canadian Bankers' Acceptance Futures (BAX) contracts to allow for their conversion to Three-Month CORRA Futures (CRA) contracts, before the discontinuation of CDOR. These amendments were self-certified in accordance with the self-certification process as established in the Derivatives Act (CQLR, Chapter I-14.01).
/jlne.ws/3RGCQQa
NSE Academy Limited collaborates with XLRI Delhi-NCR for Executive Education Programs
National Stock Exchange of India
NSE Academy Limited, a wholly owned subsidiary of the National Stock Exchange (NSE) has signed an agreement dated 12th December 2023 with XLRI Delhi-NCR, administered by Xavier Labour Relations Institute Jamshedpur, to offer joint certification programs for Executives and Professionals. The strategic alliance aims to offer specialized certification courses that cater to the evolving demands of the BFSI and Technology landscape.
/jlne.ws/4ah5A9v
2024 Outlook & Considerations for Banking
AFX
AFX Advisor Robert Albertson offers his perspective on what lies ahead for the banking sector in 2024. A Weakening Economy. Economic consensus had only recently centered on a "soft landing" with no recession and Fed rate cuts as soon as 2024. Both are premature conclusions in my view. Some are now suggesting a recession has already begun. 1) Consumer spending is likely to slow, despite its third quarter surge, as monetary restraint has typically taken up to two years to work its way into the economy. This would argue that the full impact from Fed tightening won't be in place until early 2024. The spending trajectory is still a key uncertainty. The November spending data will be available on December 22nd and will provide a key insight into this trajectory and whether a recession is the likely outcome.
/jlne.ws/47WoEsa
|
| | | |
|
| |
| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | AI is a Double-Edged Sword for Climate Change; AI companies say the technology can be used to help climate change, but it is also contributing to the problem
Jackie Davalos and Nate Lanxon - Bloomberg
Tech companies have pitched artificial intelligence as a powerful tool to address climate change, but first they may need to stop AI from making the problem even worse. "It is absolutely true that AI is an energy-intensive technology," said Sims Witherspoon, climate action lead at Google DeepMind. "Until we have a grid that is run completely on clean energy, those technologies will have a carbon footprint."
/jlne.ws/3Rhw7Lg
Alphabet Needs to Show Path to AI Sales in Race with Microsoft; Gemini release eases concerns that Alphabet has fallen behind; Alphabet's stock is at a discount to peers and its own history
Ryan Vlastelica - Bloomberg
Alphabet Inc. just got a reminder of how important the perception of having a winning AI strategy is for investors. The Google owner added $87 billion in market value in a single day last week after showing off the capabilities of its Gemini large language model, which it claims can rival OpenAI's ChatGPT. To sustain those gains, Alphabet needs to show investors how prowess in that technology will translate into higher sales.
/jlne.ws/3uWh2aC
OpenAI Says Major ChatGPT Outage on Web Resolved
Nurin Sofia - Bloomberg
OpenAI says it has resolved an incident that caused a "major" outage on ChatGPT on the web, according to a notice on its website. The service had been intermittently unavailable for about 40 minutes, according to the San-Francisco based AI chatbot creator. Nearly 3,000 outages were reported at around 9:48 a.m. Hong Kong on Thursday, according to monitoring website Downdetector.
/jlne.ws/3tkyNjl
Goldman Sachs digital assets chief sees 'huge appetite' for blockchain assets
Elizabeth Howcroft - Reuters
Goldman Sachs expects a "significant uptick" in trading volumes of blockchain-based assets within the next one or two years, the bank's global head of digital assets told Reuters.The Wall Street heavyweight has also seen increasing client interest in crypto derivatives trading, Mathew McDermott said, as markets expect the U.S. securities regulator to soon approve an application for a spot bitcoin ETF (exchange-traded fund).
/jlne.ws/3TmRc9E
|
| | | |
|
| |
| Cybersecurity | | Top stories for cybersecurity | New SEC cyber rules are about to go into effect. Expect some bumps.
Tim Starks - The Washington Post
The next two weekdays, tomorrow and Monday, bring an important couple of dates for publicly traded companies: It's when a set of contentious Securities and Exchange Commission cybersecurity rules kick in. And experts expect some real challenges for organizations that have to comply. The regulations, which have drawn fire from industry groups and Hill Republicans despite attempts by the SEC to ease concerns about the rules, are coming into effect in stages.
/jlne.ws/3GLb8vz
Coro Named to Inaugural Fortune Cyber 60 List of the Fastest Growing Companies in Cybersecurity
Business Wire
Coro, the leading provider of cybersecurity for the midmarket, today announced that it was named to the inaugural Fortune Cyber 60 list of the fastest growing companies in cybersecurity.
/jlne.ws/3GGSvZx
New crypto trading venue aimed at banks and securities firms has launched as digital assets market infrastructure continues to evolve; The interbank crypto trading venue, RULEMATCH, has launched BTC and ETH spot trading against USD for its participants.
Claudia Preece - The Trade
RULEMATCH, a new crypto trading venue, serves banks and securities firms which are already active in the crypto market has launched, offering a combination of integrated, post-trade settlement and ultra-low latency for participants including hedge funds and high frequency traders. RULEMATCH facilitates multilateral net settlement among participants, as well as addressing counterparty risk among participants with a strict delivery-vs-payment process and collateral requirements to protect against counterparty default.
/jlne.ws/3uQSP5h
|
| | | |
|
| |
| Cryptocurrencies | | Top stories for cryptocurrencies | Coinbase's international exchange to launch spot crypto trading
Reuters
Coinbase will start offering spot crypto trading services on its international exchange from Thursday, the company said, as it expands beyond the U.S. Spot trading on the international exchange, currently geared toward derivatives, will roll out in phases, starting with bitcoin and ether against USDC stablecoin from Dec. 14 for institutional clients, the company said in a blog post.
/jlne.ws/3RqseUa
Who Would Buy Bitcoin ETF If Approved? Analyst Survey Reveals
Anusuya Lahiri - Benzinga
Needham analyst John Todaro had a Buy rating on Coinbase Global, Inc (NASDAQ: COIN) with a price target of $160. Todaro had a Hold rating on Robinhood Markets, Inc (NASDAQ: HOOD). The analyst surveyed over 20 financial and wealth advisors (RIAs), 75 Coinbase users, and over 200 individuals to determine who would buy a bitcoin ETF if approved and whether they would prefer bitcoin exposure via an ETF, bitcoin-linked stocks, trusts, or buying bitcoin directly on a crypto platform such as Coinbase and Robinhood.
/jlne.ws/3REXlwP
|
| | | |
|
| |
| Politics | | An overview of politics as it relates to the financial markets | House Votes to Back Opening of GOP Impeachment Probe of Biden; Separately, Hunter Biden defies GOP subpoena, says father not involved in his business affairs
Kristina Peterson and C. Ryan Barber - The Wall Street Journal
WASHINGTON-The House narrowly approved opening an impeachment probe into President Biden on Wednesday, hours after his son, Hunter Biden, defied a congressional demand to testify on Capitol Hill, marking a sharp escalation in the battle between the White House and Republicans.
/jlne.ws/47RfPQi
Hungary Open to Lifting Ukraine Aid Veto If EU Unfreezes Funds
Zoltan Simon and Rosalind Mathieson - Bloomberg
Hungary is prepared to lift its veto on a massive European Union funding proposal for Ukraine in return for billions in financing the bloc has been withholding from Budapest over democratic backsliding, Prime Minister Viktor Orban's chief political adviser said.
/jlne.ws/3TkPoy7
Brussels setting rules for AI isn't pretty, but someone's got to do it; The EU's new tech regulations are complex but a good-faith effort to fix a problem
Alan Beattie - Financial Times
It's a much-stereotyped instinct in Brussels: see a dynamic industry, rush to regulate it. Like the Tyrannosaurus rex in Jurassic Park, EU officials hunt by movement. If part of the economy is growing fast, they're rapidly on its tail.
/jlne.ws/3TriWKA
Europe should worry less and learn to love AI; New legislation risks driving development of the transformative technology away from the bloc
John Thornhill - Financial Times
The conjugation of modern technology tends to go: the US innovates, China emulates and Europe regulates. That certainly appears to be the case with artificial intelligence.
/jlne.ws/3tewWfX
|
| | | |
|
| |
| Regulation & Enforcement | | Stories about regulation and the law. | SEC Chair Gensler Says New Rules Help Lower Risk
Bloomberg
Securities and Exchange Commission Chair Gary Gensler talks about new rules that says hedge funds and brokerages have to centrally clear more of their US Treasuries trades. He speaks to Bloomberg's Kailey Leinz.
/jlne.ws/3Rmtubd
Credit Suisse entities to pay $10 million over prohibited mutual fund services
Reuters
Credit Suisse Securities and two affiliated firms have agreed to pay over $10 million to settle U.S. Securities and Exchange Commission charges they provided prohibited services to mutual funds, the regulator said on Wednesday. In 2022, a New Jersey court banned the Credit Suisse entities from certain activities in resolving a case of alleged violations of state laws. The firms continued to offer the services despite the ban until June 2023, the SEC said.
/jlne.ws/3Nm4nDV
S.Korea regulator to take innovation more into account on crypto regulations
Reuters
South Korea's vice financial regulator chief said on Thursday that authorities would take innovation more into account in the next stage of regulating cryptocurrencies. Regulations need to have a balance between investor protection and technological innovation, said Kim So-young, vice chairman of the Financial Services Commission, at a conference held in Seoul on digital currencies. The conference was held by the South Korean government and central bank, jointly with the International Monetary Fund (IMF), following the Bank of Korea's launch of a project in October to develop a wholesale central bank digital currency (CBDC).
/jlne.ws/3TnHwvA
U.S. Treasury Appoints Leaders in Sanctions, Anti-Money Laundering Units; The U.S. Treasury Department has named two deputies to help lead the Office of Foreign Assets Control and the Financial Crimes Enforcement Network
Mengqi Sun - The Wall Street Journal
The U.S. Treasury Department named two new deputies to help lead its sanctions enforcement and anti-money-laundering units, the agency said Wednesday. The changes in the two Treasury units come as their mandates gain additional significance amid geopolitical events, including Russia's invasion in Ukraine and the Oct. 7 attack by Hamas on Israel.
/jlne.ws/46YNK8x
Credit Suisse Entities to Pay $10 Million for Providing Prohibited Mutual Fund Services
SEC
The Securities and Exchange Commission today announced that Credit Suisse Securities (USA) LLC and two affiliated Credit Suisse entities (collectively, the Credit Suisse Entities) agreed to pay more than $10 million to settle the SEC's charges that they provided prohibited underwriting and advising services to mutual funds.
/jlne.ws/3Nry8nc
SEC Adopts Rules to Improve Risk Management in Clearance and Settlement and Facilitate Additional Central Clearing for the U.S. Treasury Market
SEC
The Securities and Exchange Commission today adopted rule changes to enhance risk management practices for central counterparties in the U.S. Treasury market and facilitate additional clearing of U.S. Treasury securities transactions. The rule changes update the membership standards required of covered clearing agencies for the U.S. Treasury market with respect to a member's clearance and settlement of specified secondary market transactions. Additional rule changes are designed to reduce the risks faced by a clearing agency and incentivize and facilitate additional central clearing in the U.S. Treasury market.
/jlne.ws/3uX8XT5
SEC Approves 2024 PCAOB Budget and Accounting Support Fee
SEC
The Securities and Exchange Commission today approved the 2024 budget of the Public Company Accounting Oversight Board (PCAOB) and the related annual accounting support fee. The 2024 PCAOB budget totals $384.7 million, and the accounting support fee totals $358.8 million, of which $331.0 million will be assessed on public company issuers and $27.8 million will be assessed on registered broker-dealers.
/jlne.ws/3uX91lN
|
| | | |
|
| |
| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | AT1s back from the brink, but challenges remain
Dhara Ranasinghe and Yoruk Bahceli - Reuters
A $275 billion market for high-risk bank debt has bounced back from a shock bondholder wipeout during the Credit Suisse rescue this year, but a bigger than expected slowdown in some major economies could test the market's revival.Additional Tier One bonds -- AT1s -- were thrown into chaos in March after $17 billion of Credit Suisse AT1s were wiped out as part of a forced merger with UBS.
/jlne.ws/3v2RSXW
Apple Is So Big, It's Almost Eclipsing France's Stock Market; Stock closes on record high amid broad rally in tech stocks; Rally has boosted shares by 50%, adding $1 trillion in value
Subrat Patnaik and Michael Msika - Bloomberg
The rally in Apple Inc., the world's most valuable publicly traded company, is showing no signs of easing. After closing at a record high on Wednesday, the iPhone maker's market value is approaching that of Europe's largest stock market: France. The combined market value of companies listed in Paris was about $3.2 trillion as of Wednesday's close, versus the technology giant's $3.1 trillion, according to an index compiled by Bloomberg. Apple is bigger than all but the six largest stock markets in the world.
/jlne.ws/488evZ8
Portfolio trading is on the up but only some can make it pay; In light of today's turbulent rates environment, risk recycling capabilities are central to success in this market, and some firms are having more success than others, writes Annabel Smith.
Annabel Smith - The Trade
Portfolio trading as a concept has exploded in the last few years, egged on by market conditions and volatility brought on by the pandemic and other macroeconomic factors. However, whether or not all firms are able to monetise the tool by managing risk effectively in today's environment, is up for debate. The concept allows traders to execute a basket of stocks in one single transaction, minimising costs and allowing traders to bundle less liquid or more difficult to trade instruments in with more liquid transactions.
/jlne.ws/3GJNEXw
Corporate and Municipal CUSIP Request Volumes Rise in November
CUSIP Global Services
CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for November 2023. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity over the next quarter, found a monthly increase in request volume for new corporate and municipal identifiers.
/jlne.ws/3GKam1G
|
| | | |
|
| |
| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Big oil welcomes COP28 call to move away from fossil fuels in 'orderly' way; Climate agreement may fail to result in falls in oil and gas production
Tom Wilson and Jamie Smyth - Financial Times
The world's largest oil producers have saluted the COP28 agreement's focus on an "orderly" move away from fossil fuels and a continued role for "transitional" energy sources such as gas. The compromise reached on Wednesday included a reference to fossil fuels for the first time in three decades of UN climate agreements but failed to support phasing them out.
/jlne.ws/4ahGbN5
Carbon Capture Needs Enough Pipelines to Circle Earth Four Times; The US goal to cut carbon dioxide hinges on transporting and burying more than a billion tons per year.
Ari Natter and Dave Merrill - Bloomberg
The world inked a historic pact at COP28 climate talks this week to move away from using fossil fuels. But it also endorsed a key technology that could give them a lifeline: carbon capture and storage. And the US is set to be the most important proving ground for capturing the greenhouse gas and the sprawling network of infrastructure needed for it to work. The rest of the world will be watching. More than $83 billion in investments have poured into CCS over the past three decades, according to BloombergNEF. Now, the US is making a new massive bet on carbon capture and storage and the country will be a test case for technology's success - or failure. If capturing carbon is going to be part of the world's arsenal to fight global warming, it has to work in the US.
/jlne.ws/3TqhxE2
Wall Street Makes Zero Progress in Energy Finance Transition; The industry needs to get to a 4-to-1 ratio of clean energy versus fossil-fuel financing. At the end of last year, it was 0.73 to 1-little changed from 2021.
Tim Quinson - Bloomberg
The world's largest banks are showing little or no progress when it comes to their promise to help the world avoid the worst consequences of global warming.
According to researchers at BloombergNEF, the ratio of spending on low-carbon infrastructure relative to fossil fuels needs to reach 4 to 1 by 2030. At the end of last year, the so-called energy-supply banking ratio, which includes debt and equity underwriting, was 0.73 to 1-slightly worse than the 0.75-to-1 ratio reported in 2021.
/jlne.ws/48bWtVG
COP28's Success Marks Just a Tiny Upgrade on COP27 Results; BloombergNEF gave COP28 in Dubai a 3.8 out of 10 success rating - 2.2 points below its overall score for the Glasgow conference in 2021.
Olivia Rudgard and Kira Bindrim - Bloomberg
This year's COP28 in Dubai is concluding with a pleasant surprise: an agreement among 200 nations to transition away from fossil fuels. It marks the culmination of two weeks in which tensions flared over the future of coal, oil and gas. While the text isn't final, it's already being hailed as a "turning point" in the climate fight. The future of fossil fuels was the most critical issue on the COP28 docket, but just one of many under discussion. To help cut through the noise, BloombergNEF in November identified 10 areas where governments needed to make progress at COP28 in order to take a meaningful step toward the goals of the Paris Agreement. Each area is scored out of 10 based on how much headway was made in Dubai, and assigned a weighting based on importance and urgency.
/jlne.ws/3GIACcN
The U.S. May Not Have Won Over Critics in Dubai, But the Biden Administration Helped Keep the Process Alive
Marianne Lavelle - Inside Climate News
When it looked like climate negotiations in Dubai were about to fall apart early this week over the summit's failure to make any commitment to transition away from fossil fuels, U.S. Special Climate Envoy John Kerry sharpened his tone to align with the most ardent climate activists-many of whom had been targeting him for criticism. Kerry was no longer talking about a phase-out of "emissions" rather than fuels, and no longer insisting that the qualifier "unabated" be included in any text on ridding the world of fossil fuels. Instead, Kerry was saying that the United States stood with those who rejected the weak draft text published on Monday by COP28 President Sultan al-Jaber of the United Arab Emirates. "Many of us have called for the world to largely phase out fossil fuels, and that starts with a critical reduction this decade," Kerry said. "This is a war for survival."
/jlne.ws/48lymEp
France's Credit Agricole to stop financing new fossil fuel projects
Mathieu Rosemain and Sudip Kar-Gupta - Reuters
/jlne.ws/4ailhgJ
Billionaire Mark Cuban Backing $1 Billion Congo Carbon Plan
Michael J. Kavanagh - Bloomberg
/jlne.ws/3RgE6bs
Two men indicted for selling eagles in 'killing spree' of 3,600 birds
David Strege - Forthewin.com
/jlne.ws/3RkI4zJ
|
| | | |
|
| |
| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Bob Diamond's Atlas Is Looking to Invest in US Regional Banks
Gillian Tan - Bloomberg
Bob Diamond's Atlas Merchant Capital is seeking to raise more than $500 million to invest in US regional banks, according to people with knowledge of the matter. The firm is approaching the effort with a flexible mandate, and aims to make equity or debt bets in both publicly traded and closely held banks, said the people, all of whom asked not to be identified discussing confidential information.
/jlne.ws/4agNLHJ
UBS steps up efforts to recover cash from Credit Suisse defectors - Bloomberg News
Reuters
Swiss lender UBS Group AG has stepped up efforts to recoup hundreds of millions in cash bonuses that Credit Suisse paid to retain dealmakers before the lender's collapse, Bloomberg News reported on Wednesday. UBS has contacted hundreds of bankers and offered some multi-year payment plans amid efforts to claw back a chunk of the 1.2 billion Swiss francs ($1.38 billion) in restricted cash bonuses, the report said, citing people familiar with the matter and documents seen by it. The amount that UBS is seeking to recover is less than 651 million Swiss francs, the report said. UBS earlier in the year took over Credit Suisse, in the biggest bank merger since the global financial crisis and it was orchestrated by the Swiss state to avert Credit Suisse's collapse.
/jlne.ws/4724xYa
Chinese Banks Drop Out of Top Five Global Equity Underwriters
Filipe Pacheco and Pei Li - Bloomberg
/jlne.ws/4ahIU9g
Credit Suisse Disbands China Onshore Wealth Unit, Dozens Depart
Cathy Chan - Bloomberg
/jlne.ws/3NolKEg
BlackRock Launches ETF Version of Rick Rieder's Active Bond Fund
Jack Pitcher - The Wall Street Journal
/jlne.ws/3uT1B2G
Swedish Lender Is Europe's 'Safest Bank'-And One of the Most Shorted
Love Liman - Bloomberg
/jlne.ws/3v1bwDC
|
| | | |
|
| |
| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | Microsoft Tops the List of Best-Managed Companies of 2023; Technology giants led the way, with Apple, Nvidia, Alphabet and IBM rounding out the top 5
Tom Corrigan - The Wall Street Journal
Technology giants strengthened their grip on the top of the annual Management Top 250 ranking of America's best-run companies. For the fourth year running, Microsoft finished in first place. Apple placed second, and Nvidia ranks third. Google parent Alphabet jumped 20 places to finish at No. 4, and International Business Machines rounds out the top five companies in the ranking compiled by researchers at the Drucker Institute, part of Claremont Graduate University.
/jlne.ws/4alIZsr
Citigroup Offers Partial Early Bonuses to Encourage Staff Departures; Bank is making the offer to a limited number of employees; CEO Jane Fraser is leading bank's biggest overhaul in decades
Harry Wilson and Benjamin Stupples - Bloomberg
Citigroup Inc. is offering to pay some staffers a portion of their bonuses early if they agree to depart as executives continue with their restructuring of the Wall Street giant. The bank is making the offer to a limited number of staff, according to people familiar with the matter. In addition to the bonus awards, employees who accept the offer would also be allowed to keep all of their deferred stock awards, the people said, asking not to be identified discussing personnel information.
/jlne.ws/47WqfOG
|
| | | |
|
| |
| Wellness Exchange | | An Exchange of Health and Wellness Information | CVS Is Among Health-Care Companies Adopting Biden's AI Safeguards; Biden pushes privacy, safety in absence of action by lawmakers; Firms agree to inform people about information generated by AI
Akayla Gardner - Bloomberg
CVS Health Corp. is among 28 health-care companies adopting voluntary safeguards established by the Biden administration on the use of artificial intelligence, according to a White House official, the latest effort to ensure privacy and security protections for the emerging technology.
/jlne.ws/3GJCQZK
|
| | | |
|
| |
| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | The World's Poorest Countries Buckle Under $3.5 Trillion in Debt
Ezra Fieser and Yinka Ibukun - Bloomberg Markets
At Manhattan's luxe Pierre hotel on a late September morning, Adebayo Olawale Edun, the finance minister of Nigeria, tried to soothe the jitters of Wall Street bankers. Over croissants and fresh-squeezed orange juice, he pledged that his country would cut spending and collect more in taxes to make the crushing debt payments owed to foreign investors. For Edun, a former investment banker and World Bank economist, it could hardly have been a more important audience: a presentation sponsored by Citigroup Inc., one of the world's biggest underwriters of international bonds.
/jlne.ws/3TpjAIn
RBA Is Yet to See Case for Direct Lending to Funds During Crisis
Swati Pandey - Bloomberg
The Reserve Bank of Australia has yet to see the case for lending directly to pension or other investment funds in the way that recently occurred in the US and UK after major dislocations, Assistant Governor Brad Jones said on Thursday.
/jlne.ws/47X4kGY
Hedge Fund Fraud Probe Raises Alarms for China Risk Managers
Bloomberg
An alleged fraud in China that ensnared financial firms including a major hedge fund has set off alarms across the industry, with investment managers, regulators and brokerages racing to improve risk monitoring.
/jlne.ws/46Ypqn5
|
| | | |
|
| |
Disclaimer: All John Lothian Newsletters, JohnLothianNews.com, MarketsWiki.com and MarketsReformWiki.com are products of John Lothian News, a division of John J. Lothian & Company, Inc. The opinions expressed in all John J. Lothian & Company, Inc. publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers. Futures and options trading involve risk. Past results are no indication of future performance. Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any website or newsletter content.
© 2023 John J. Lothian & Company, Inc. All Rights Reserved. |
|
|
