| August 22, 2023 | "Irreverent, but never irrelevant" | | | | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
I am starting to see firms on LinkedIn get excited about the prospects of the upcoming FIA 2023 EXPO Conference in Chicago on October 2 to 3. I am also starting to get excited to see the myriad changes in the industry since the last EXPO. As the FIA says, "The rapid rate of change is relentless."
FIA also says, "As market participants and operators, you can't afford to be unprepared for handling potential disruptions or acting on new opportunities. Come to FIA Expo and discover the game-changing ideas, information, and technologies that will future-proof your firm and the cleared derivatives industry."
Join FIA on October 2-3 in Chicago for Expo 2023. Register by September 1 and save!
Eurex is joining the daily options juggernaut today announcing "Eurex to launch Daily Options." Eurex said trading in EURO STOXX 50 Index EoD Options (OEXP) will start on August 28, 2023.
Our friends at FEX Global down under are getting ready to launch the FEX Global Mysteel Iron Ore futures and options contracts on September 11, 2023. The Australian dollar denominated 50 metric tonne contract will offer additional risk management opportunities for industry participants with an interest in the forward price of iron ore. The Fex Global contract is based upon the Mysteel independently certified IOSCO compliant SEADEX 62 fe price assessment, FEX said in a press release. The grade "62% Fe" refers to the iron content in the ore, with higher grades typically being more desirable as they require less processing to extract the desired iron content.
WFE CEO Nandini Sukumar, who was recently interviewed by JLN's Sally Duros in an ESG themed JLN podcast is the subject of a recent City A.M. YouTube video titled "Why are exchanges important to ESG?" In the video, Sukumar "discusses the industry's focus on ESG initiatives such as carbon neutrality, corporate governance, and combating greenwashing. Exchanges touches many areas of the financial markets, the industry is helping to educate and convince all stakeholders that sustainability makes good business sense."
Say so long to LJIM, the long Jim Cramer ETF that attracted just $1.3 million in assets after launching five months ago. The short Jim Cramer ETF, SJIM, will keep trading, Bloomberg reports. For the record, Jim Cramer was not involved in these products and never mentioned them on CNBC. LJIM has gained about 2.2% since inception and SJIM has dropped about 4.4%.
How bad was the smoke from the Canadian wildfires for Chicago and New York in terms of air quality? According to a Bloomberg report, "New York and Chicago saw more dangerous air days in June and July than in the past 23 years of US data." This wiped out decades of air pollution progress.
It is often said the insurance industry is the tip of the spear for climate change and we are seeing the cost of that in a Bloomberg story reporting "Claims for weather-related incidents are set to exceed $100 billion for the third year in a row, as floods, hail and wildfires linked to climate change become more frequent."
The headline of the day is from the Financial Times with a story titled "Find someone who loves you like hedge funds love Nvidia; Ride or die" by Robin Wigglesworth.
Can you name or do you even know who the eight participants are in the first Republican presidential debate scheduled for Wednesday in Milwaukee, Wisconsin? The eight do not include former President Donald Trump, who is ducking the debate (Donald Ducking?) for an interview with Tucker Carlson. The eight making the cut for the debate are Gov. Ron DeSantis of Florida, former Vice President Mike Pence, former Gov. Chris Christie of New Jersey, former Gov. Asa Hutchinson of Arkansas, South Carolina Senator Tim Scott, former United Nations ambassador Nikki Haley, political newcomer Vivek Ramaswamy and Gov. Doug Burgum of North Dakota, The New York Times reported.
Those running for the GOP presidential nomination who did not make the cut include businessman Perry Johnson, who previously tried to run for governor of Michigan, Miami Mayor Francis X. Suarez, and talk-show host Larry Elder, who made a failed run for governor of California. Will Hurd, a former congressman from Texas, is also running.
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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Reuters is hosting Sustainability Reporting USA 2023 on October 2-3, 2023, at the
Marriott Marquis in New York City. Current changes in the regulatory landscape represent the most significant overhaul of reporting requirements since reporting's inception, exposing businesses to new reputational, financial and legal risks. Companies must implement strong data collection and management systems that can meet the high level of data accuracy required. Many are turning to automation and digitalization to streamline processes, improve accuracy and report more efficiently. The speaker faculty for this event are senior leaders who are guiding their businesses toward regulatory compliance. Learn more here. ~SAED
Our most read stories yesterday on JLN Options were:
- Surge in zero-day options sparks fears over market volatility
- China eyes new derivatives contracts to boost investor morale
- Quant Trader Doubles Fortune to $11 Billion as XTX Profit Surges ~JB
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Credit Rating Research Specialist Daniel Cash on the complexity of rating ESG, the source of "woke-ism," and why extra due diligence is necessary
JohnLothianNews.com
John Lothian News talked with Daniel Cash, a credit rating research specialist and Reader in Law at Aston University, about credit ratings and the complexity of rating ESG. Cash described the origins and relative simplicity of existing credit ratings as well as the challenges of ESG ratings.
Watch the video »
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New York and California Each Lost $1 Trillion When Financial Firms Moved South
Linly Lin and Tom Maloney - Bloomberg
The drip, drip, drip of the finance industry's exit from New York and California has been measured anecdotally, one at a time, these past few years. Elliott Management decamped to West Palm Beach. AllianceBernstein to Nashville. Charles Schwab moved to suburban Dallas. Now, for the first time, there are hard numbers quantifying the exact scope of the exodus.
/jlne.ws/3OJE9vc
***** Is the money where the firms are located, or where the clients are?~JJL
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Elon Musk's Shadow Rule; How the U.S. government came to rely on the tech billionaire-and is now struggling to rein him in.
Ronan Farrow - The New Yorker
Last October, Colin Kahl, then the Under-Secretary of Defense for Policy at the Pentagon, sat in a hotel in Paris and prepared to make a call to avert disaster in Ukraine. A staffer handed him an iPhone-in part to avoid inviting an onslaught of late-night texts and colorful emojis on Kahl's own phone. Kahl had returned to his room, with its heavy drapery and distant view of the Eiffel Tower, after a day of meetings with officials from the United Kingdom, France, and Germany. A senior defense official told me that Kahl was surprised by whom he was about to contact: "He was, like, 'Why am I calling Elon Musk?' " The reason soon became apparent.
/jlne.ws/3QKDwUD
***** We are in so much trouble if we have to depend on X-man Musk.~JJL
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A Warlord With a Cocaine Empire Is Saving the Amazon Rainforest; Insurgents are doing the jobs of park rangers in Colombia.
Matthew Bristow - Bloomberg
Ivan Mordisco is a Colombian warlord with a cocaine empire and a bounty on his head. He is also doing more to protect the Amazon rainforest than almost anyone else on Earth. Deforestation has plunged in the cattle ranching and coca growing region controlled by Mordisco's guerrilla force after he took the unpopular decision of ordering local farmers to stop cutting down trees. This followed a request by the government of President Gustavo Petro, which has effectively persuaded a group that routinely guns down soldiers and police officers to take on the job of park rangers.
/jlne.ws/44oWiEi
***** Deals with the devil don't always work out the way you want them to.~JJL
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French restaurants are reportedly requiring more than $5,000 minimum spend per table and refusing reservations for returning diners who didn't spend enough at their last visit
Grace Mayer - Business Insider
Tensions between restaurants and customers over tipping practices and extra dining fees have been boiling over this year. The spread of digital touchscreen payment systems have made asking customers for tips omnipresent. Some businesses may be leaning into tip requests to cover the cost of higher worker wages - and avoid paying their workers more.
/jlne.ws/3KPJoZ6
****** So much for an afternoon baguette and a glass of wine.~JJL
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Monday's Top Three
Our top story Monday was Bloomberg's Quant Trader Doubles Fortune to $11 Billion as XTX Profit Surges. Second was Fallacy at the FERC, from MRB Compliance Consulting. Third was Surge in zero-day options sparks fears over market volatility, from the Financial Times.
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| Lead Stories | Trading Technologies to acquire Abel Noser Solutions; Industry-leading provider of TCA for institutional investors further enhances TT cross-asset offering
Trading Technologies, Abel Noser Solutions
Trading Technologies International, Inc. (TT), a global capital markets technology platform provider, and Abel Noser Solutions, LLC (ANS) announced today a definitive agreement for TT to acquire ANS, the industry-leading provider of transaction cost analysis (TCA) for investment managers, brokers, asset owners and consultants, from Abel Noser Holdings, a majority-owned portfolio company of Estancia Capital Partners. Terms of the transaction, expected to close on Aug. 31, were not disclosed.
/jlne.ws/3P64eG9
Is Nvidia the New Tesla? Options Traders Place Their Bets; Investors are wagering that the furious rally in Nvidia shares will continue after Wednesday's earnings report
Gunjan Banerji - The Wall Street Journal
Traders are ramping up their bets that the blockbuster rally in Nvidia's shares will accelerate after Wednesday's earnings report. Riding the frenzy of interest in artificial-intelligence technology, they have dished out more than $100 billion on Nvidia options this year, according to Cboe Global Markets data through mid-August. About 60% of that sum is tied to call options that can be used to bet on a continued rally. No other stock besides Tesla has garnered that level of investor interest.
/jlne.ws/3QWoqvg
The Biggest Player in Crypto Is Facing a Risk Over Russia; Binance says it follows global sanctions rules and has no banking relationships anywhere for its peer-to-peer service
Angus Berwick and Patricia Kowsmann - The Wall Street Journal
Binance is helping Russians move money abroad, potentially adding to its sprawling legal problems in the U.S. The cryptocurrency giant, led by founder Changpeng Zhao, joined many other major international companies early last year in scaling back its business in Russia, one of its largest markets by trading volume at the time. After Russia invaded Ukraine, Binance said it had stopped working there and was implementing Western sanctions requirements. It restricted trading on its platform in Russia.
/jlne.ws/45j4Pdg
Crypto has 'amplified financial risks' in emerging markets, central banks warn; Currency's appeal as a low-cost solution for countries with high inflation is 'illusory', says BIS
Laura Noonan - Financial Times
Cryptocurrency assets have amplified rather than reduced financial risks in less developed economies, and regulators will need to treat them in the same way they oversee other assets, some of the world's most powerful central banks have warned. Novel solutions to payments challenges should not be classified as 'dangerous' simply because they are different, the Bank for International Settlements said on Tuesday. However the global central banking body added that the appeal of crypto was "illusionary", in a paper published on approaches to regulation.
/jlne.ws/3E6gW1j
Trading Technologies to acquire Abel Noser's buy-side TCA subsidiary; Deal comes as part of Trading Technologies' multi-asset data and analytics expansion after the vendor launched a new foreign exchange business line in June.
Annabel Smith - The Trade
Trading Technologies (TT) has entered into a definitive agreement to acquire the buy-side TCA provider subsidiary of US agency broker Abel Noser Holdings. The deal is expected to close on 31 August. Further terms were not disclosed. As part of the acquisition of Abel Noser Solutions, Trading Technologies clients will gain access to TCA and regulatory services.. Abel Noser's analytics will be integrated into the TT platform later down the line.
/jlne.ws/45HVifL
London Stock Market Revival Falls Flat as Arm Flees for IPO to New York
Swetha Gopinath and Kit Rees - Bloomberg
The world's biggest listing this year may be that of a British firm, but in Arm Ltd.'s home market there's much lament over its decision to sell shares in New York over London. The Cambridge-based chip designer, controlled by Softbank Group Corp., unveiled its long-awaited filing for an initial public offering in the US on Monday. It's the latest blow for the London Stock Exchange, which has seen more companies quit than join, and whose indexes lag behind European and US peers.
/jlne.ws/47zAMiW
MAREX Announces 2023 Interim Results; Strong growth delivered in first half, positive outlook for full year performance
Marex Group plc
Marex Group plc ('Marex' or the 'Group'), the diversified global financial services platform, announces strong results for the six months to 30 June 2023 (the 'period'). The Group has been transformed by ongoing investments in organic growth and selective acquisitions, enabling us to increase our market share and deliver very strong growth in revenue and profitability in the first half of the year. The increasing scale of the Group's global and diversified franchise, post the ED&F Man Capital Markets acquisition which closed in the second half of 2022, has resulted in improved margins and materially higher ROE.
/jlne.ws/45FpCr4
China's blueprint for an alternative world order; Beijing is using its economic muscle to rally developing countries and reduce the west's influence over the UN
James Kynge - Financial Times
When Xi Jinping, China's leader, delivered an "important speech" at the UN in September 2021, it appeared to be little more than a list of feelgood clichés. He said that the world needed "harmony between man and nature" and added that economic development should bring "benefits for all".
/jlne.ws/3E7d6oI
How Nvidia Built a Competitive Moat Around A.I. Chips
Don Clark - The New York Times
Naveen Rao, a neuroscientist turned tech entrepreneur, once tried to compete with Nvidia, the world's leading maker of chips tailored for artificial intelligence. At a start-up that the semiconductor giant Intel later bought, Mr. Rao worked on chips intended to replace Nvidia's graphics processing units, which are components adapted for A.I. tasks like machine learning.
/jlne.ws/3qGmTPr
The $7.4 Trillion ETF Industry Is Littered With One-Hit Wonders
Katie Greifeld and Vildana Hajric - Bloomberg
The $7.4 trillion ETF world is wrestling with a unique strain of concentration risk: some of the biggest issuers are reliant on a single product for the bulk of their success. At least 28 firms - that run eight funds or more - have a minimum of 40% of their entire asset base in a single product, according to data compiled by Bloomberg Intelligence.
/jlne.ws/3KMo9Yb
Taiwan bourse launches ETF portal as investor demand surges; Onshore ETF assets under management jumped by more than 30% in the first six months this year
Sinyi Au - Financial Times
The Taiwan Stock Exchange has launched an exchange traded fund platform providing investors with information on trends and latest ETF data as the funds become the fastest-growing investment product in the market. Taiwan's ETF market has experienced massive growth in recent years as local investors pile into high-dividend ETFs.
/jlne.ws/3P5qi2D
Billionaire Fights Nantucket Clam Shack 18 Inches From His Home; Charles Johnson sued to block eatery on the island's Old Wharf; Fried clams and lobsters rolls inches from $6.5 million home
Madlin Mekelburg - Bloomberg
A very seasonal legal spat is playing out in Nantucket: The billionaire owner of a $6.5 million cottage is suing a clam shack to stop it from opening a mere 18 inches away from his 1,200 square foot home. In the summer playground of the 1%, resident Charles Johnson - former chairman of investment giant Franklin Resources and owner of the San Francisco Giants - has been quarreling with his new neighbor: Straight Wharf Fish Market.
/jlne.ws/47AYxax
Musk Told Pentagon He Spoke to Putin Directly, New Yorker Says; Magazine reports on October conversation with top official; SpaceX CEO later denied speaking with Russian president
Craig Trudell - Bloomberg
Elon Musk told Pentagon officials during a call about the satellite-based internet that SpaceX supplies to Ukraine's military that he'd spoken personally with Russian President Vladimir Putin, the New Yorker reported. Musk volunteered the information during an October conversation with Colin Kahl, then the Pentagon's top policy official, about Ukrainian forces losing connection to Space Exploration Technologies Corp.'s Starlink service as they entered territory contested by Russia, the magazine said Monday.
/jlne.ws/45Aq3D8
Wild Weather Is Coming for Your Town, Too. Eventually.; It's not a question of if but when - and whether your property, your power grid and your politicians are ready for it.
Jessica Karl - Bloomberg Opinion
Last year, I went to a wedding in Dallas. As luck would have it, the nuptials took place on the one weekend of the year when it was snowing in Texas. As a Northeasterner, I figured a few forecasted flurries would be no big deal. Big mistake: Upon arrival, the host of my Airbnb was in full-on apocalypse mode, having me run the taps to protect the pipes.
/jlne.ws/45Aq8GW
Market Digests $1 Trillion Jump in T-Bill Supply Without Hiccup; Market participants have been willing to absorb issuance; Reverse repo facility usage has stalled around $1.8 trillion
Alex Harris - Bloomberg
The government has issued an eye-watering $1 trillion in Treasury bills since the debt-ceiling was suspended in early June. So far, the market hasn't batted an eye. For all the concerns about whether the market would be able to take up the supply, investors faced with uncertainty over the economy and the Federal Reserve's policy path have piled into short-term debt, earning more than 5% yield to mop up the issuance.
/jlne.ws/47JA8zk
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Ukraine's Zelenskiy says F-16s make him 'confident' that Russia will lose the war
Jacob Gronholt-pedersen - Reuters
Ukrainian President Volodymyr Zelenskiy told a crowd in Denmark on Monday that promised deliveries of U.S.-made F-16 fighter jets had made him confident Ukraine could end Russia's invasion. Denmark and the Netherlands on Sunday announced they would supply the first F-16s to Ukraine, with the initial six due to be delivered around New Year. Washington had approved the delivery of the jets ahead of Zelenskiy's trip to Copenhagen.
/jlne.ws/3E650g1
Ruble Aftershocks Unnerved Even Russia's Least Exposed Neighbor; Kazakh central banker says 'connection remains' with ruble; Tenge's slump last week followed Russian currency depreciation
Nariman Gizitdinov - Bloomberg
A brief crash in the ruble last week jolted the foreign-exchange market in Kazakhstan, underlining how risks can spread even to a neighbor deemed least vulnerable to flows of Russian capital. The Russian currency reversed losses soon after the central bank called an emergency meeting and capital controls came back to the government's agenda. It ended the week with the world's biggest rally against the dollar.
/jlne.ws/3E3jTQi
Switzerland to Probe Botched Sale of Tanks Destined for Ukraine; State-owned Ruag had agreed to sell Leopards to Rheinmetall; Decision blocked by government in name of country's neutrality
Bastian Benrath - Bloomberg
Switzerland will probe state-owned arms maker Ruag AG after its failed attempt to sell almost 100 tanks that would eventually have been used by Ukraine in its war against Russia.
/jlne.ws/3qKi7Ar
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Eurex to launch Daily Options
Eurex
Eurex extends its diversified equity index product suite by listing Daily Options.
Trading in EURO STOXX 50® Index EoD Options (OEXP) will start as of 28 August 2023. Institutional demand for options with short-term expiries has strongly increased as investors seek to react quickly and precisely to specific market events. Eurex will start with Daily Options on the EURO STOXX 50 Index. The new options will be offered with expirations on the next five trading days.
/jlne.ws/3YMmJme
HKEX Celebrates 30Th Anniversary Of H-Share Listings
Hong Kong Exchanges
Hong Kong Exchanges and Clearing Limited (HKEX) was today (Tuesday) delighted to host a celebratory reception to mark the 30th anniversary of the first H-share listing. This foundational initiative kick-started three decades of market connectivity, cementing Hong Kong's role as one of the world's premier international financial markets.
/jlne.ws/3OO0o3a
Re: Third-Party Risk Management and Oversight
CCPGlobal
The Global Association of Central Counterparties ("CCP Global") 1 appreciates the opportunity to comment on the FSB's consultative document on Enhancing Third-Party Risk Management and Oversight. CCP Global represents 42 members from around the world, who operate over 60 individual central counterparties (CCPs), representing over 95% of the centrally cleared risk management in Initial Margin terms.
/jlne.ws/3E8jj3A
Moscow Exchange expands the range of stock futures
MOEX
On August 22, 2023, trading in deliverable futures contracts for the shares of PJSC KAMAZ, Bank St. Petersburg, Bashneft, Moscow Credit Bank, and M.Video will begin on the derivatives market of the Moscow Exchange. Expanding the range of securities derivatives will open up new opportunities for implementing trading strategies, as well as hedging securities portfolios for a wide range of investors.
/jlne.ws/3QIC0T8
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | Becoming a Bank Proves Challenging for Fintechs Seeking Survival; Figure Technologies becomes latest to withdraw OCC application; 'Very few people, if any, will get those charters': attorney
Paige Smith and Yueqi Yang - Bloomberg
In an era of soaring interest rates and intense competition, fintechs are increasingly deciding they need to become banks to ensure their longterm survival. They're also finding that doing so isn't easy. Figure Technologies Inc., a blockchain firm started by SoFi Technologies Inc. co-founder Mike Cagney, is the most recent company to withdraw its application for a bank charter, a move made after years of waiting for an answer from US financial regulators. Figure isn't alone: financial-technology firms Oportun Inc., Brex Inc. and Monzo Bank Ltd. and crypto company BitPay Inc. have all pulled their US banking-charter applications, seeing how arduous the path to approval has become.
/jlne.ws/45h5fAF
Bloomberg LP reportedly names Vlad Kliatchko as CEO in major shake-up
Reuters via NY Post
Bloomberg LP is naming product head Vlad Kliatchko chief executive and appointing former Bank of England governor Mark Carney as chair of its new board of directors, according to an internal memo sent to employees by founder Michael Bloomberg and seen by Reuters. Online business publication The Information first reported the changes.
/jlne.ws/45Eexqw
Unusual Whales Collaborates with TradeStation Securities to Allow Trading Through its Suite of Tools; The integration with Unusual Whales provides additional tools and services for retail traders
TradeStation Securities, Inc.
TradeStation Securities, Inc. ("TradeStation Securities"), an award-winning,* self-clearing online brokerage for trading stocks, ETFs, options and futures, has announced its integration with Unusual Whales, an option flow platform and information service. This collaboration makes TradeStation the first major U.S. multi-asset class broker dealer integrated into the Unusual Whales platform, providing users with market access and trading within their suite of tools.
/jlne.ws/3QPeQud
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| Cybersecurity | | Top stories for cybersecurity | Exclusive: Cybersecurity firm SentinelOne explores sale -sources
Milana Vinn and Anirban Sen - Reuters
SentinelOne Inc (S.N), a cybersecurity company with a market value of about $5 billion, has been exploring options that could include a sale, according to people familiar with the matter. The Mountain View, California-based company became a takeover target after its shares lost 80% of their value in the last two years. It had benefited from a bonanza in technology spending during the COVID-19 pandemic, fueled by remote work, which fizzled as companies slashed their information technology budgets as the economy slowed.
/jlne.ws/47zDHYW
Deepfake Imposter Scams Are Driving a New Wave of Fraud; AI could turbocharge the cybertheft economy. The world's banking industry is scrambling to contain the risk.
Nabila Ahmed, Adam Haigh, Ainsley Thomson, and Ellie Harmsworth - Bloomberg
Computer-generated children's voices so realistic they fool their own parents. Masks created with photos from social media that can penetrate a system protected by face ID. They sound like the stuff of science fiction, but these techniques are already available to criminals preying on everyday consumers.
/jlne.ws/47HFL0X
CISOs Tout SaaS Cybersecurity Confidence, But 79% Admit to SaaS Incidents, New Report Finds
The Hacker News
A new State of SaaS Security Posture Management Report from SaaS cybersecurity provider AppOmni indicates that Cybersecurity, IT, and business leaders alike recognize SaaS cybersecurity as an increasingly important part of the cyber threat landscape. And at first glance, respondents appear generally optimistic about their SaaS cybersecurity.
/jlne.ws/44mILwS
Feds put cybersecurity for AI, quantum computing in the spotlight
Tim Starks - The Washington Post
A trio of government agencies on Monday urged organizations to prepare now for quantum computers' ability to break through encryption, telling them to develop a "road map" for a future that grows near. The government message follows closely behind another from last week, with an agency saying artificial-intelligence software should be made "secure by design" - that is, developed with security as a core feature.
/jlne.ws/3YKiDuK
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| Cryptocurrencies | | Top stories for cryptocurrencies | U.S. retail traders eye a fresh piece of the crypto derivatives pie
Lisa Pauline Mattackal and Medha Singh - Reuters
America's mom and pop bitcoin buffs have a shiny new derivatives playground that cryptocurrency analysts hope will fire up a moribund market. Their new platform is cryptocurrency exchange Coinbase Global, which on Aug. 16 became the first crypto-focused firm to win approval to offer cryptocurrency futures to U.S. retail customers.
/jlne.ws/3E8kZdE
Indian Crypto Exchange CoinDCX Is Cutting 12% of Jobs as Bear Market, Taxes Take Their Toll
Amitoj Singh - CoinDesk
CoinDCX, one of India's most prominent cryptocurrency exchanges, is cutting about 12% of its staff as the prolonged bear market and India's tax policies hit revenue. The exchange is laying off 71 employees whose roles do not fit into current business priorities, a company spokesperson told CoinDesk on Tuesday. The Mumbai-based company, founded by Neeraj Khandelwal and Sumit Gupta in 2018, has about 590 employees. Several teams were affected by the job losses.
/jlne.ws/3qxTwPr
Crypto Mining Gets Its Own Lobbying Voice in Washington; Digital miners are creating the Digital Energy Council to advocate for their interests among politicians.
Jesse Hamilton - CoinDesk
Crypto miners are establishing a new voice in U.S. policy, starting up the Digital Energy Council to lobby for friendly policy as regulators and Congress are wrestling with the next steps in crypto regulation. The member group will be advocating for policies "that promote responsible and sustainable energy development, grid resilience, maintain United States competitiveness, and protect national security," it said in a Tuesday statement.
/jlne.ws/3E55X8f
Coinbase Gets a Stake in Stablecoin Operator Circle and USDC Adds 6 New Blockchains
Ian Allison - CoinDesk
Cryptocurrency exchange Coinbase (COIN) is getting a minority stake in Circle Internet Financial and the companies are dissolving their Centre Consortium partnership that had issued USD Coin (USDC), the world's second-largest stablecoin. As part of the move, Circle will bring issuance and governance of USDC fully in-house.
/jlne.ws/3slqH9d
Coinbase Acquires Stake in Stablecoin Company Circle
Vicky Ge Huang - The Wall Street Journal
Crypto exchange Coinbase Global has taken an equity stake in stablecoin company Circle Internet Financial, the companies said Monday. Coinbase and Circle co-founded the USD Coin in 2018, and have a revenue-sharing agreement on the interest income earned from reserves backing the stablecoin. The stablecoin will be launching on six new blockchains between September and October, according to a blog post from the companies.
/jlne.ws/45p8IO0
Ethereum Co-Founder Vitalik Buterin Sends $1M ETH to Coinbase
Lyllah Ledesma - CoinDesk
/jlne.ws/3EcNjLD
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| Politics | | An overview of politics as it relates to the financial markets | The Green Climate Fund needs urgent replenishment
Mahmoud Mohieldin - Financial Times Opinion
If developing countries are to deliver on their Paris Agreement goals, adequate funds will be the catalyst. Finance has been at the heart of recent climate negotiations - without it, these economies will not be able to mitigate the impacts of environmental disasters, nor increase their resilience against such crises. The Green Climate Fund, a centrepiece of the climate finance landscape, is undergoing replenishment this year.
/jlne.ws/45g6Eb1
Who is Vivek Ramaswamy, a rising GOP candidate in the 2024 presidential race?; This week's primary debate could be a coming-out moment for the biotech entrepreneur.
Alexander Nazaryan - Yahoo! News
When he first announced he was running for president earlier this year, most Americans had no idea who Vivek Ramaswamy was. Yes, he was an exceptionally rich and energetic Harvard graduate, full of optimism about the United States but unafraid to partake in the culture wars, as he showed in his book Woke, Inc. On the other hand, he was ... who, exactly?
/jlne.ws/44iX45M
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| Regulation & Enforcement | | Stories about regulation and the law. | Judge Backs U.S. Sanctions on Crypto Platform Tornado Cash; A federal judge in Austin, Texas, sided with the government in a civil lawsuit that was brought by six individuals and financed by crypto exchange Coinbase
Mengqi Sun - The Wall Street Journal
Sanctions imposed last year by the U.S. Treasury Department against decentralized cryptocurrency platform Tornado Cash are here to stay, according to a recent ruling by a federal judge.
/jlne.ws/3P3Wjcr
Ex-Vitol Employee Could Face Two Foreign Bribery Trials
Former oil trader Javier Aguilar, who faced foreign bribery charges in New York, has been charged in Texas
Richard Vanderford - Bloomberg
A former employee of Swiss energy trading firm Vitol who is facing foreign bribery charges in New York has been hit with a set of related charges in Texas. Javier Aguilar, who previously worked as a Vitol manager and oil trader in Houston, has been charged under the U.S. Foreign Corrupt Practices Act and money-laundering law with paying bribes to help Vitol win and retain business from Petróleos Mexicanos, Mexico's state-owned subsidiary, federal prosecutors in Houston said Monday.
/jlne.ws/44ojrqm
FINRA Names Bill St. Louis as New Head of Enforcement
FINRA
FINRA announced today that it has appointed Bill St. Louis as Head of Enforcement, effective immediately. St. Louis, an Executive Vice President, was most recently head of FINRA's National Cause and Financial Crimes Detection Program (NCFC). St. Louis will be responsible for the management of approximately 350 enforcement staff in 11 offices across the United States and will report directly to FINRA CEO Robert Cook.
/jlne.ws/47IiGLD
SEC Charges FinTech Investment Adviser Titan for Misrepresenting Hypothetical Performance of Investments and other Violations
U.S. Securities and Exchange Commission
The Securities and Exchange Commission today announced charges against Titan Global Capital Management USA LLC, a New York-based FinTech investment adviser, for using hypothetical performance metrics in advertisements that were misleading. The SEC also charged Titan with multiple compliance failures that led to misleading disclosures about custody of clients' crypto assets, the use of improper "hedge clauses" in client agreements, the unauthorized use of client signatures and the failure to adopt policies concerning crypto asset trading by employees.
/jlne.ws/3P4sAjE
SEC Obtains Final Judgment Against IIIinois Resident for Insider Trading
SEC
On August 18, 2023, the U.S. District Court for the Northern District of Illinois entered a final judgment against Daniel V.T. Catenacci for insider trading in the securities of biotechnology company Five Prime Therapeutics, Inc. in advance of the company's November 10, 2020 announcement that it had achieved positive drug trial results for its flagship cancer drug Bemarituzumab.
/jlne.ws/3Le0pMX
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Soaring Onion Prices in India May Hurt Modi More Than Tomatoes; India slaps 40% duty on onion exports, will subsidize sales; Stable food prices crucial for Modi's bid to win third term
Pratik Parija - Bloomberg
Rising onion prices in India pose a greater risk to Prime Minister Narendra Modi's government than a recent spike of 700% in tomatoes, forcing authorities take fresh steps to contain food inflation before key polls. India has imposed a 40% export tax on onions and plans to sell them locally at subsidized rates.
/jlne.ws/47KICGL
Zoom Boosts Outlook With Move Beyond Video Calls; Quarterly revenue from the largest customers gains 18%; Company moving away from reliance on consumers, small business
Brody Ford - Bloomberg
Zoom Video Communications Inc. raised its annual forecasts, a sign of progress on its effort to sell more products to large enterprise customers. The shares gained about 4% in extended trading. Revenue for the year ending in January 2024 will be as much as $4.5 billion, the company said Monday in a statement. In May, Zoom projected annual sales of about $4.48 billion.
/jlne.ws/3YN0oVO
Traders Bet ForgeRock Deal Likely to Succeed Before DOJ Decision; Market sees roughly 60%-70% chance of Thoma Bravo takeover; Antitrust concerns linger before Aug. 22 DOJ decision deadline
Yiqin Shen - Bloomberg
Traders are betting ForgeRock Inc.'s proposed sale to Thoma Bravo LLC is more likely to go through than not, with a key regulatory decision due in the next day. Shares of the software provider rose as much as 3.2% to $21.88 on Monday, moving them closer to the private equity firm's takeover offer at $23.25. The $2.3 billion deal is in focus as the US Justice Department is deciding whether to challenge the case in court, with an Aug. 22 deadline to file a lawsuit.
/jlne.ws/3YGK0WJ
Titan Global Agrees to Pay $1M Over Misleading Marketing
Lucy Brewster - ETF.com
Titan Global Capital Management USA, which runs a fintech advisor app, agreed to pay $1.04 million to settle charges that the firm used misleading hypothetical performance metrics in ads. New York-based Titan from August 2021 to last October promoted a misleading annualized performance as high as 2,700% for its Titan Crypto strategy on its website, according to an SSEC statement.
/jlne.ws/3slK0zc
New U.S. Buyback Tax Hits Companies With $3.5 Billion Burden; Companies are disclosing the impacts of the 1% tax on share repurchases
Jennifer Williams-Alvarez - The Wall Street Journal
A new 1% tax on stock buybacks is starting to increase companies' anticipated tax burdens, to the tune of over $3.5 billion in the first half of the year among the largest U.S. public companies.
/jlne.ws/3slUsqq
Car Prices Might Be Unsustainable for Buyers; Surging loan delinquencies signal that many consumers can't afford their auto loans
Ben Foldy - The Wall Street Journal
/jlne.ws/3P42MUK
Find someone who loves you like hedge funds love Nvidia; Ride or die
Robin Wigglesworth - Financial Times
/jlne.ws/3sr0Qwu
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Pope Francis to update landmark document on world environmental crisis
Philip Pullella - Reuters
Pope Francis said on Monday that he was writing a follow-up to his landmark 2015 encyclical on the protection of the environment and the dangers of climate change "to bring it up to date". He made the surprise announcement in a brief, unprepared addition in a speech to a group of lawyers from Council of Europe countries. In 2015, Francis wrote Laudato Si (Praised Be), a major document on the need to protect the environment, face the dangers and challenges of climate change and reduce the use of fossil fuels. An encyclical is the highest form of papal writing.
/jlne.ws/47GAKFY
Ships Are Backed Up at the Panama Canal Because of Historic Drought
Alex Longley - Bloomberg
One of the world's most potent symbols of global trade - the Panama Canal - is falling victim to climate change as shrinking water levels force ships to part-load in order to navigate the vital waterway. Vessels have been waiting almost 4 days on average at the waterway that creates a shortcut between the Atlantic and Pacific oceans, according to Clarkson Research Services, a unit of the world's largest shipbroker. That compares with a little more than a day two months ago. Some ships have even had delays of as many as 20 days.
/jlne.ws/3E7qFV9
Wildfires and Extreme Weather Are Driving Climate Denialism Online; Scientists have said for years global warming will lead to more natural disasters. Now that it's happening, some dark theorists on social media are spreading disbelief.
Olivia Rudgard and Daniel Zuidijk - Bloomberg
When images and video of the tragic blazes in Maui began to filter out across the internet, rumors also started to spread. Across Facebook, TikTok and X, the platform formerly known as Twitter, commentators shared wild speculations that the fires, which have now taken the lives of more than 100 people, were the product of arson, a plot to clear the land for billionaires or, most bizarrely, space lasers.
/jlne.ws/3QOHrju
Tuscany Geysers That Inspired Dante's 'Inferno' Can Fix Europe's Energy Bind; Geothermal is an infinite source of power once used by the Roman Empire.
Petra Sorge and Alberto Brambilla - Bloomberg
The steam and geysers rising from the valleys of Tuscany inspired Dante Alighieri's vision of hell in The Divine Comedy. Centuries later, they're providing Italy with an inexhaustible supply of renewable energy.
/jlne.ws/3qF6daX
For Florida's Ailing Corals, No Relief From the Heat; Scientists now fear a global bleaching event, with Florida leading the way.
Amy Green - Inside Climate News
No immediate end is in sight to the unprecedented marine heat wave stressing the state's coral reefs, raising fears the heart-rending losses seen here may portend a global bleaching event that could affect reefs from Florida to Colombia, scientists of the National Oceanic and Atmospheric Administration said Thursday. The scientists said the record temperatures affecting the state's corals, including those protected as part of the Florida Keys National Marine Sanctuary, which includes the only barrier reef in the continental United States, are remarkable not only for their intensity but duration.
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Firms Embrace ESG Reporting Amid Growing Complexity
Aaran Fronda - ESG Investor
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Clean Energy Could Rival Gaming as Economic Engine for US Tribes
Naureen S Malik - Bloomberg
/jlne.ws/44eIOLr
Nickel Firm Eyes Texas for $400 Million EV Battery-Metal Plant; Wave Nickel aims to have US refinery running by 2028, CEO says
Mariana Durao - Bloomberg
/jlne.ws/45G3DR5
Few US Workers Leaving Carbon-Intensive Jobs Move to Green Ones; Research looked at job shifts from fossil-fuel industries; Older workers more likely to take another so-called dirty job
Mark Niquette - Bloomberg
/jlne.ws/3slBvnO
Permian Resources to Acquire Earthstone for $2 Billion; All-stock deal is latest for Permian's 30-something co-CEOs; It will give company pro-forma production of 300,000 barrels
Simon Casey and Mitchell Ferman - Bloomberg
/jlne.ws/3YGFZlb
Anticipating the U.S. Securities and Exchange Commission's ESG Disclosure Rules and Guidelines: How to Stay Ahead of the Game
Foley Hoag LLP - JDSupra
/jlne.ws/3YISmgq
Green Rider: 100 UK acting stars join campaign to curb 'climate-damaging' film and TV practices
Stuart Stone - BusinessGreen
/jlne.ws/3P6xsEV
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Susquehanna's Yass Joined Weinstein, Ackman in Bid for Sculptor
Hema Parmar - Bloomberg
Susquehanna International Group co-founder Jeff Yass is part of a consortium of investors that bid for Sculptor Capital Management, according to people familiar with the matter. He joined Boaz Weinstein, Bill Ackman and Marc Lasry in making an offer for the publicly traded hedge fund firm after it announced in November that it was looking for a buyer, the people said.
/jlne.ws/47HstBB
SoftBank's Arm Files for IPO That Is Set to Be 2023's Biggest; Designer of phone semiconductors looks to go big on AI chips; IPO would be largest tech offering since Alibaba's in 2014
Ian King and Michael Hytha - Bloomberg
SoftBank Group Corp.'s Arm Holdings Ltd. took a step toward what's set to become the biggest initial public offering of the year, a bet that the once-obscure designer of phone chips can flourish in the era of artificial intelligence computing. In a long-awaited regulatory filing Monday, Arm said the offering is being led by Barclays Plc, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Mizuho Financial Group Inc.
/jlne.ws/45HH3HP
S&P Joins Moody's in Cutting US Banks Amid 'Tough' Climate; Bank stocks are down in August with higher funding costs seen; 'Decline in deposits has squeezed liquidity,' S&P says in note
David Scheer - Bloomberg
Two weeks after Moody's Investors Service rattled financial stocks by cutting the ratings for a slew of US banks, S&P Global Ratings is downgrading and dimming its outlook for several more - citing a similar mix of pressures making life "tough" for lenders. S&P lowered grades one notch for KeyCorp, Comerica Inc., Valley National Bancorp, UMB Financial Corp. and Associated Banc-Corp, it said Monday in a statement, noting the impact of higher interest rates and deposit moves across the industry.
/jlne.ws/45FL0fN
Top China Hedge Fund Blames Foreign Investors for Stock Rout; Banxia says in article that foreign funds spur volatility; Hang Seng, CSI trade at 2023 lows as overseas investors sell
Henry Ren - Bloomberg
A top-performing Chinese macro hedge fund blamed global capital for sinking the country's stocks to the lowest levels since November. Foreign funds are primary drivers of Chinese stocks' recent selloff, said Li Bei, founder of Shanghai Banxia Investment Management Center. Overseas investors stirred up market volatility and, "taken together, they are a bunch of aimless flies," she said in an article posted on social media platform WeChat.
/jlne.ws/3QOQd0N
Morgan Stanley Is One of the Only Big Banks Left Off Arm's IPO; Chip firm files for what's set to be biggest IPO of the year; Arm lines up a large roster of investment banks for its IPO
Michael Hytha - Bloomberg
There's no sign of Morgan Stanley in Arm Ltd.'s filing for its initial public offering, a rare event for a bank that's often a lead adviser on landmark technology IPOs. Chip designer Arm on Monday filed for what's set to be the biggest IPO of the year and potentially one of the largest tech listings ever on a US exchange.
/jlne.ws/3OKQwaf
Citi: Fraser the Razor needs sharper edge in her battle with The Blob
Financial Times Opinion
/jlne.ws/3qK60TZ
AI Funds Are Missing Out on the AI Stock Boom; Tech stocks are powering the bull market, but AI-powered ETFs are lagging behind
Bob Henderson - The Wall Street Journal
/jlne.ws/3YJohxe
Fifth Third Bank adds Laurent Desmangles, Kathleen Rogers to its board of directors
Meg Erpenbeck - Cincinnati Business Courier
/jlne.ws/3EbqiZu
Citigroup's Rehab Means Fewer Managers; As a global banking supermarket, the company suffered a lack of focus, but the CEO Jane Fraser's vision is gaining a following.
Paul J. Davies - Bloomberg
/jlne.ws/3snP46j
GAM acquisition saga continues as Rock Investments proposes new alternative to Liontrust deal
Claudia Preece - The Trade
/jlne.ws/3P6xXih
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | Help Your Overwhelmed, Stressed-Out Team
Julie Mosow - Harvard Business Review
Is your team stressed out? These days, everyone seems overwhelmed and way too busy. But even when your team members have a lot on their plates, they don't have to sacrifice their health or happiness. What can you do to reduce your team's stress? How can you help them focus on what really needs to get done? As a leader, it's your job to help your people find balance.
/jlne.ws/44munES
Schwab to Cut Staff, Real Estate to Save $500 Million a Year
Silla Brush - Bloomberg
Charles Schwab Corp. is planning to cut jobs and close or downsize offices to achieve at least $500 million in annual cost savings as the brokerage responds to investor pressure. The company will close or cut down on some real estate and reduce employee headcount, Westlake, Texas-based Schwab said Monday in a regulatory filing.
/jlne.ws/3E84luq
The Worker Bidding War Is Over. Companies Are Cutting Pay for New Hires; After years of salary increases, businesses across the economy say they're reducing starting salaries for recruits
Te-Ping Chen - The Wall Street Journal
Pay for new hires is starting to shrivel after years of hefty salary bumps, requiring workers to reset what financial gains to expect from switching to a new job. Wages, especially for people who changed jobs, climbed in recent years as companies competed for workers to fill pandemic-induced labor shortages. Now, as the job market cools and businesses become more cautious in their hiring, many companies are paying new recruits less than they did just months ago-in some cases, much less.
/jlne.ws/3OIKozf
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| Wellness Exchange | | An Exchange of Health and Wellness Information | As Temperatures Climb, Millions More People Face Food Insecurity
Kendra Pierre-Louis - Bloomberg
As summer heat waves grow more frequent and extreme because of climate change, so do the risks to human health. But while the immediate effects of heat are well understood, there is an insidious secondary effect, according to a new study: People go hungry. "Households across the world struggle to afford to buy food when it gets too hot to work and earn an income," says Carolin Kroeger, a doctoral researcher at the University of Oxford who authored the study, published today in the journal Nature Human Behaviour.
/jlne.ws/3OJEMoy
MRI scan more accurate than blood test at diagnosing prostate cancer, UK study finds; Results could form basis of a screening programme for most common male tumour
Clive Cookson - Financial Times
A 10-minute MRI scan is a much more accurate way of diagnosing prostate cancer than the blood test used widely at present and could form the basis of a screening programme, according to a study published by UK scientists on Tuesday. Researchers at University College London gave both an MRI scan and PSA test to 303 men aged 50 to 75. The scan showed signs of cancer in the prostate of 48 men, although 32 of them had less PSA in their blood than the level of 3 nanograms per millilitre (ng/ml) currently recommended for further investigation.
/jlne.ws/3P43WQ6
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | A BRICS Common Currency Is Still a Pipe Dream
Daniel Moss - Bloomberg Opinion
Paul O'Neill, a former US Treasury secretary, said that if America ever dropped the strong-dollar policy, he would hire a brass band at Yankee Stadium to mark the proclamation. O'Neill had reservations about the mantra, but ultimately fell into line. The musicians didn't make it to rehearsal on his watch and Washington's support for greenback primacy lived on, with the odd tweak every now and then.
/jlne.ws/3R6i4tJ
India's wealth managers search out small-town millionaires; Business opportunities abound for financial advisers as the rich proliferate in the country's far-flung regions
Chloe Cornish - Financial Times
When Indian wealth manager Yatin Shah heard about the four brothers in Rajasthan who became multimillionaires after scoring a $600mn investment in their family-run exam coaching company, he chartered a plane from Mumbai to scout for business.
/jlne.ws/3YK5bad
Woodside chief calls European gas price spike 'irrational'; Australian oil and gas giant says talks with unions remain constructive as strike fears loom over markets
Nic Fildes - Financial Times
The sharp rise in European natural gas prices caused by concerns over potential strikes in Australia is "irrational" and a "clear sign of the fragility of the market", according to the chief executive of Woodside Energy, one of the country's largest oil and gas producers.
/jlne.ws/3qywiZr
Southern African Bloc Backs $17 Billion Gas Infrastructure Plan; Group of states see gas as crucial to securing energy supply; Fifteen-year plan still requires funding and other steps
Paul Burkhardt and Matthew Hill - Bloomberg
A southern African bloc of nations backed a $17 billion natural gas infrastructure plan to bolster energy supplies on a continent where almost half of the population lacks access to power. The 16-member Southern African Development Community approved the blueprint to invest in infrastructure such as pipelines and terminals for local and imported supplies. While not yet a major source of gas, the bloc is home to some significant discoveries with projects in various stages in Mozambique, Tanzania and South Africa.
/jlne.ws/3OMtWOn
Ships Are Backed Up at the Panama Canal Because of Historic Drought
Alex Longley - Bloomberg
One of the world's most potent symbols of global trade - the Panama Canal - is falling victim to climate change as shrinking water levels force ships to part-load in order to navigate the vital waterway. Vessels have been waiting almost 4 days on average at the waterway that creates a shortcut between the Atlantic and Pacific oceans, according to Clarkson Research Services, a unit of the world's largest shipbroker. That compares with a little more than a day two months ago. Some ships have even had delays of as many as 20 days.
/jlne.ws/45EbVZK
Frustrated by a Lack of Details, Communities Await Federal Decision on Protecting New York From Coastal Storm Surges
Delaney Dryfoos - Inside Climate News
/jlne.ws/45vnAdm
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