| December 21, 2023 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
Yesterday's top of the newsletter commentary "Opinion: Class-Action Lawsuit Against CME Group Holds Disruptive Potential to Membership Prices, Future Deals and CME Leadership" was well read yesterday as traffic to JohnLothianNews.com jumped 170% after the story was published.
Additionally, I received ongoing commentary from one CME Group member about how well the story was doing on Google, as it ascended the search engine and ended up in the second slot for a search of "CME Lawsuit" and third for "Langer vs. CME."
Yesterday we also published another video from our FIA Asia 2023 coverage, this one with Bill Herder of FIA Asia. Herder spoke about the growing retail interest in markets in Asia.
Former FT journalist Jeremy Grant wanted to add to the comments I made yesterday about Drew Mauck and wrote: "Drew Mauck is a pitch-perfect PR professional, with an innate instinct for how to work with journalists in his client's interest. If you're not hiring him, you are off the field of play when it comes to communicating the right way."
FIA has established a sparkling new working group to assess and establish the FIA's advocacy stance concerning the European Union's Digital Operational Resilience Act (DORA). Additionally, the group will actively engage in responding to the European Supervisory Agencies' DORA Level 2 consultations. The deadline for submitting responses is set for March 4, 2024. FIA invites all FIA member firms to participate in this working group. Should you wish to join, please reach out to FIA at forums@fia.org
You might be asking, what is DORA, and what are DORA Level 2 consultations? DORA Level 2 consultations refer to the second phase of consultations or regulatory discussions related to the implementation and detailed rules of the Digital Operational Resilience Act (DORA) in the European Union. During this phase, regulatory authorities, stakeholders, and industry participants may provide input, feedback, and comments on the specific technical details, requirements, and guidelines that will accompany the broader regulatory framework established by DORA. This process helps ensure that the practical aspects of implementing the legislation are well-defined and workable for the entities affected by it.
My daughter Katherine arrived home last night after a long drive from West Virginia, where she attends West Virginia Institute of Technology and works for the Boy Scouts at the Summit Bechtel Reserve. She is working on a degree in adventure recreation management. However, she informed us she has resigned from the Scouts as of the end of the year so she can concentrate on school during her last semester. She will return to the Summit and the staff of the Scouts this summer as a river guide, she said, assuming she does not accept a full-time job before then, as she is actively interviewing with different Scouting Councils for a position.
Kat knows what she wants to do and has a plan to do it.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
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Our most read stories from our previous edition of JLN Options were:
- Opinion: Class-Action Lawsuit Against CME Group Holds Disruptive Potential to Membership Prices, Future Deals and CME Leadership from John Lothian News.
- ProShares to launch S&P 500 ETF with zero-day call options from Reuters.
- Did This Options Trade Help Drive Stocks Lower? from The Wall Street Journal. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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FIA Asia Conference: Bill Herder Discusses the Evolution of Individual Investor Participation
JohnLothianNews.com
Bill Herder, region director of FIA Asia, sat down with Robert Lothian of John Lothian News at the FIA Asia Conference in Singapore to discuss the growing role of individual investors in the futures and derivatives markets and the impact of technology on this changing landscape.
Watch the video »
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Elisha Wiesel, Son of Holocaust Survivor, Has Words for Wall Street and Ivy Leagues
Katia Porzecanski - Bloomberg
A bust of Elie Wiesel, the Auschwitz survivor, author and Nobel laureate, gazes down at his only son from the shelf overhead. The statuette is a model of the stone carving of Wiesel that graces the Human Rights Porch of the Washington National Cathedral. For the son, Elisha Wiesel, it's also something more: a reminder, as if one was really needed, of a responsibility so heavy that it once felt like a millstone.
/jlne.ws/488eapy
***** He does not speak for his late father, but he is finding his own voice. And we should have a listen.~JJL
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Swedish Traders Press Nasdaq for Shorter Hours, More Work-Life Balance; Advocates say shorter trading day adds equality, helps hiring; Nasdaq open to cutting hours if coordinated across Europe
Jonas Ekblom - Bloomberg
Nasdaq Inc. is facing calls from Swedish traders to trim trading hours on the biggest stock market in the Nordics for improved work-life balance and to attract new talent. The exchange in Stockholm has the world's longest trading session, along with many of its European peers. But it's in Sweden where traders have begun to come out publicly to try and sway the bourse through interviews in local media - and one even wrote a book.
/jlne.ws/3vfYvpA
****** OK, make the hours 50 minutes long. See how that works.~JJL
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Federal Court Orders California Resident and His Corporation to Pay Over $5 Million in Restitution and Penalties in a Romance Fraud Scheme; CFTC's First Pig-Butchering Scam Judgment
CFTC
The Commodity Futures Trading Commission announced today the U.S. District Court for the Central District of California issued a default judgment granting a permanent injunction against California resident Cunwen Zhu and his company Justby International Auctions. The order, issued December 7, found Zhu and his company liable for fraudulently soliciting funds in connection with digital asset commodities and/or forex trading and misappropriating customers' funds. [See CFTC Press Release No. 8726-23].
/jlne.ws/4aty4Nu
****** In honor of the CFTC's first "Pig Butchering" case, I built a page on MarketsWiki about the subject. ~JJL
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Wednesday's Top Three
The top story yesterday was from CNN via Yahoo Finance, OpenAI's technology is upending our everyday lives. It's overseen exclusively by wealthy, White men. Second was Bloomberg's, AI Robot Outmaneuvers Humans in Maze Run Breakthrough and third was from our own John Lothian at John Lothian News, Opinion: Class-Action Lawsuit Against CME Group Holds Disruptive Potential to Membership Prices, Future Deals and CME Leadership.
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| Lead Stories | Vilified Zero-Day Options Blamed by Traders for S&P Decline; Put trades cited as catalyst for biggest slide in three months; Light trading, overbought conditions may have exacerbated move
Paul Dobson - Bloomberg
This year's hottest derivatives trade, and perhaps also its most divisive, stole the limelight one final time for 2023 as market watchers cast zero-day options as the villains behind Wednesday's rally-ending slump in US equities. With the S&P 500 Index in overbought territory and turnover curtailed by looming holidays, observers suggested hefty volumes in put options that expire within 24 hours, known as 0DTE options, were sufficient to drag the market to its biggest loss in almost three months. Such trades would oblige market makers on the other side of the transactions to hedge their exposure, pushing the market lower, the argument goes.
/jlne.ws/3RyFGp5
Option Traders Sound Alarm Bells Over Sizzling India Stock Rally; Proprietary traders increasingly turning bearish on stocks; India stock gauges have climbed to new record highs this month
Akshay Chinchalkar - Bloomberg
The rally in Indian stocks that saw benchmark indexes climb to records this month may be poised for a pullback if derivatives positioning is any guide. Proprietary traders have boosted net short positions in index calls, while trimming their net shorts in index-based puts, according to data compiled by Bloomberg. At the same time, their stock options activity - increasing net shorts in calls and rising net longs in puts - also indicates increasing caution. Prop traders - who take on market exposure for themselves rather than their clients - account for the largest single share of the total derivatives volume in India, so monitoring their positioning comes with extra significance.
/jlne.ws/4ayxHB9
FlexTrade and LSEG Collaborate to Deliver a Fully Integrated FX Solution; A single interface approach to FX and multi-asset execution management
FlexTrade Systems
FlexTrade Systems (@FlexTrade), a global leader in multi-asset execution and order management systems, and LSEG, have today announced a partnership to deliver FlexTRADER EMS clients seamless access to FXall, LSEG's leading electronic trading platform for global currency products. The move is designed to support regulated FX flows and further enhance the capabilities of FlexFX as part of FlexTrade's buy-side multi-asset trading platform.
/jlne.ws/3tqScPx
Wall Street Couldn't Beat Private Credit. Now It Wants a Cut; Big banks lost out on billions in fees as direct lenders lured away corporate borrowers. The future of their leveraged lending businesses depends on how they adapt.
Paula Seligson - Bloomberg
On the surface, it was your run-of-the-mill private credit deal. A bunch of heavy hitters in the industry - Oak Hill Advisors, Antares Capital and Golub Capital - were providing half-a-billion dollars to fund the buyout of an engineering firm. But at the end of the list of lenders was a name that caught the eye - a small, upstart player in the world of direct lending: JPMorgan Chase & Co.
/jlne.ws/3RQJV0N
CFTC Chairman Announces Division of Data Appointments to Continue the CFTC's Focus on Mission Critical Data; Ted Kaouk Named the Chief Data Officer and Director of the Division of Data and John Coughlan Named Chief Data Scientist
CFTC
Commodity Futures Trading Commission Chairman Rostin Behnam today announced two appointments in the Division of Data (DOD) that will enhance the CFTC's analytic capabilities as the agency increasingly innovates its data-driven culture. Ted Kaouk has been named Chief Data Officer and Director of DOD. Dr. Kaouk will spearhead data integration initiatives and collaborate with the CFTC's offices and divisions to help the agency make informed policy decisions. John Coughlan will serve as the agency's first Chief Data Scientist. He will advance DOD's data science expertise and expand the agency's use of artificial intelligence to more effectively oversee the derivatives markets and meet its own regulatory requirements
/jlne.ws/48txP32
Korea Is Said to Seek Fines on HSBC, BNP for Naked Short Selling; Watchdog recommends at least 10 billion won fine for each bank; If imposed, fines would be record for illegal short sellers
Youkyung Lee - Bloomberg
South Korea's financial watchdog has recommended imposing a fine of at least 10 billion won ($7.7 million) each on HSBC Holdings Plc and BNP Paribas SA for so-called naked short selling, which is considered illegal in the country, according to two people familiar with the matter. The nation's Financial Supervisory Service made the recommendation to the Securities and Futures Commission under regulator Financial Services Commission, said the people who requested anonymity discussing private matters.
/jlne.ws/3twZwJq
CFTC proposes operational resilience rule for futures brokers and swap dealers; Agency's head says approach is "tailored" to diversity in size and complexity
Will Acworth - MarketVoice
The US Commodity Futures Trading Commission has proposed a rule to require futures commission merchants, swap dealers and major swap participants to establish an "operational resilience framework." The proposed rule was prompted by the operational disruptions that arose earlier this year after a ransomware attack on an industry service provider, but its scope goes well beyond cyber security.
/jlne.ws/3GVtutT
IG North America Announces Leadership Changes
IG US Holdings, Inc.
IG US Holdings, Inc. ("IG North America"), the parent company of tastylive, Inc., tastytrade, Inc., tastycrypto, and IG US, announces today it has appointed a new Chief Financial Officer, effective immediately, and a new Chief Technology Officer, effective at the end of calendar year 2023. Isaac Poore will take up the role of CFO for IG North America, replacing Matt Hellmuth, who is moving on to his next opportunity. Isaac previously served as Financial Controller for IG North America. Nicholas Cottone, currently Vice President of Finance, will be promoted to Director of Growth and Operations for tastytrade.
/jlne.ws/4ayaz5N
The TRADE predictions series 2024: Macro outlooks; Market onlookers hailing from State Street Global Advisors, Carmignac, Liquidnet and Mosaic Smart Data take a deeper look at the most important macro issues for the industry to bear in mind over the next 12 months.
Editors - The Trade
Richard Collins, senior credit trader, State Street Global Advisors. As a child of the eighties, it's difficult to express the magnitude of joy that the arrival of the video recorder brought to a kid's life back then. For me, no toy could match the excitement of pushing that big clunky cassette into the slot, and then feasting my eyes on what became displayed on the modestly sized TV screen.
/jlne.ws/41vrotY
The TRADE predictions series 2024: Fixed income, a look at central bank policy; Participants across RBC BlueBay Asset Management, FIA European Principal Traders Association (EPTA), Marex and OpenGamma unpack what 2024 has to hold for fixed income across regulation, central banks and interest rates.
Editors - The Trade
Phil Steel, senior trader, convertible bonds, RBC BlueBay Asset Management. The market is already pricing in rate cuts in Q1 although I, along with many others, don't believe they will begin before the end of H1. This uncertainty will lead to heightened equity volatility in 2024. On top of this, many more companies will need to refinance their bonds in 2024 than they did in 2023 and higher rates will make this an expensive exercise. Finally, the era of QE is well and truly over and the investment environment where "everything is going up" has disappeared with it. Investors will need to think far more about the risk profiles of their portfolios.
/jlne.ws/3RufOed
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | With Ukraine's Aid in Doubt, Companies Say They're the Plan B; The economy is headed back to its prewar level as manufacturers have pivoted to new markets and products while consumers have kept spending.
Dasha Afanasieva, Volodymyr Verbianyi, and Olesia Safronova - Bloomberg
From its base in the city of Dnipro in central Ukraine, Biosphere Corp. supplied countries across the former Soviet Union with household and cleaning products. Demand was buoyant. Orders were good. Then, like for the rest of the country, life turned upside down in February last year when Russia invaded. Sales collapsed 30%. Biosphere needed to fill the void as Ukrainians went to war. The result: a wet wipe in a khaki-green envelope that's suitable for soldiers in the trenches.
/jlne.ws/47aMijB
EU Looks To Free Itself From Russian Energy Using World's Largest Concentrated Solar Plant: 'Reliability Is Key'; "The question of energy security, or the question of energy sovereignty, is more than ever a major consideration."
Leo Collis - The Cool Down
Russia's invasion of Ukraine has accelerated attempts by European nations to move away from energy typically sourced from the largest country in the world. Oil, gas, and coal have been exported from Russia in vast quantities for years, but alternatives are now being sought to meet national energy demands without having to import from a country that is waging an illegal war.
/jlne.ws/4760E4x
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Israel's Military Says Gaza City Tunnel Network Served Hamas Senior Leadership; Tunnels enabled Hamas's top brass to covertly traverse the enclave
Anat Peled and Carrie Keller-Lynn - The Wall Street Journal
The Israeli military released footage of a tunnel network in Gaza City that it said provided Hamas's senior leadership and operatives covert passage across the enclave. The military said that tunnel shafts were found in the residences and offices of senior Hamas officials and that they allowed for covert descent through elevators and stairs and allowed for both escape and prolonged stays.
/jlne.ws/41uk3Ln
Israel Signals It Could Agree to Palestinian Authority Governing Gaza After the War; National security adviser says Israel could accept the West Bank's leadership but only if it makes fundamental reforms
David S. Cloud - The Wall Street Journal
A top national security aide to Israeli Prime Minister Benjamin Netanyahu indicated that the country could accept a U.S. plan for a revamped Palestinian Authority-which currently governs the West Bank-to also take over the day-to-day administration of Gaza after the war, in a sign that Netanyahu is easing his opposition to the idea under pressure from the Biden administration.
/jlne.ws/3TBs53i
Gazans Are Starting to Blame Hamas for Wartime Suffering; Palestinians overwhelmingly hold Israel responsible for the death and destruction, but criticism of the militant group is spreading
Margherita Stancati and Abeer Ayyoub - The Wall Street Journal
When news of the Oct. 7 attacks on southern Israel by Hamas militants reached Palestinians in the Gaza Strip, many took to the streets in celebration, distributing sweets and cheering fighters as they paraded hostages through the enclave. Since then, however, quiet criticism has begun spreading against the militant group, with Gazans blaming the militants for having provoked Israel's wrath and for their inability to shield the population from a devastating war and a humanitarian crisis that deepens by the day.
/jlne.ws/3v9vITI
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Hong Kong Stock Exchange: derivatives, ETF trading rise to offset slump in IPO, share markets, as 'diversification efforts pay off'
South China Morning Post
Hong Kong Exchanges and Clearing (HKEX), which runs Asia's third-largest stock market, reported strong growth in derivatives and ETF trading despite a big fall in new listings, in an indication that the bourse operator has successfully diversified its business model.
/jlne.ws/3GS2DyI
Spanish financial markets leave 2023 behind with higher shareholder remuneration, an upward IBEX 35 and 10 stock market debuts
BME
Dividend payments by listed companies on the Spanish stock exchange rose by 18.8% to 27.4 billion euros through November; BME Growth closes the year with ten new incorporations, while the new BME Scaleup marketplace now has a dozen registered advisers; In sustainability, the IBEX ESG family is launched and 14,000 million euros in ESG issues are admitted for trading on BME's markets during the year; Number of traded equity futures contracts grows 58%, while BME Clearing launches new Digital Asset derivatives Segment. BME today presented the 2023 Market Report, a year in which the IBEX 35 hit the 10,000 points mark for the first time since February 2020 and reached five-year highs, with a rise of more than 20%.
/jlne.ws/3NBSF8v
CME Group Inc. Announces Fourth-Quarter and Year-End 2023 Earnings Release, Conference Call
CME Group
CME Group Inc. will announce earnings for the fourth quarter and full year of 2023 before the markets open on Wednesday, February 14, 2024. Written highlights for the quarter will be posted on the company's website at 6:00 a.m. Central Time, the same time it provides its earnings press release. The company will also hold an investor conference call that day at 7:30 a.m. Central Time, at which time company executives will take analysts' questions.
/jlne.ws/3GXsyF6
Nodal Exchange Announces Launch of Solar Peak Power Futures Contracts
Nodal Exchange
Nodal Exchange announces the launch of 23 new solar peak futures contracts. These contracts are available for trading today. The new products, created in response to customer feedback, enable more precise risk management as solar generation plays an increasingly significant role in the evolving energy landscape. The full list of contracts, where HE stands for Hour Ending, rtp stands for real time power and dap stands for day ahead power, includes.
/jlne.ws/3RNykiZ
ICE First Look at November Mortgage Performance: Delinquencies Historically Low Despite Seasonal Rise; Performance of Recent Originations Worth Watching;
Intercontinental Exchange
The national delinquency rate edged higher to 3.39% in November - down 10 basis points (bps) from the same time last year - but remains 64 bps below pre-pandemic levels. While delinquencies remain low overall, the rate among FHA loans is now at a 9-year high - excluding the immediate aftermath of the pandemic - and will be worth watching closely in 2024. Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, reports the following "first look" at November 2023 month-end mortgage performance statistics derived from its loan-level database representing the majority of the national mortgage market.
/jlne.ws/3GQSr9B
CAP Factor Adjustment in KOSPI 200 Health Care index etc.
KRX Global
CAP Factors in the KOSPI 200 Health Care index, KRX 300 Health Care index, KRX Health Care index will be changed. Effective Date : December 26th, 2023. Details will be sent out in Index Data Product.
/jlne.ws/3RTUq3z
The Moscow Exchange is expanding its range of instruments for the over-the-counter stock market with a central clearing house
MOEX
On December 22, 2023, the line of tools of the Moscow Exchange service for concluding over-the-counter transactions in shares without listing with settlements through a central counterparty (CCP) will be replenished with 13 new securities. From this date, ordinary shares of JSC RBT (RBTY), ordinary and preferred shares of PJSC Sintez (KSIN and KSINP), ordinary and preferred shares of PJSC NK Rosneft - Smolensknefteprodukt (SMNF) will become available to professional trading participants and their clients and SMNFP), ordinary shares of Saratovnefteproduct JSC (SARN), ordinary and preferred shares of Elektropribor PJSC (TZEP and TZEPP), ordinary shares of Agrofirm Mtsenskaya JSC (AFMC), ordinary and preferred shares of BPGC JSC (BESK and BESKP), ordinary shares of OJSC Vyshnevolotsky MDOC (VDOK) and ordinary shares of PJSC Dorogobuzh (DGBZ).
/jlne.ws/488hKju
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | LSEG and FlexTrade unveil integrated FX solution; The collaboration is set to support regulated FX flows and enhance FlexFX's capabilities as part of FlexTrade's buy-side multi-asset trading platform.
Claudia Preece - The Trade
FlexTrade and LSEG have announced a collaboration to deliver a single interface approach to FX and multi-asset execution management through a fully integrated FX solution. The collaboration is set to support regulated FX flows and enhance FlexFX's capabilities as part of FlexTrade's buy-side multi-asset trading platform.
/jlne.ws/3Nxe2rl
X Suffers Biggest Outage Since Musk's Takeover
Nurin Sofia - Bloomberg
Elon Musk's X suffered its biggest user-reported outage since the billionaire bought the social media platform in a widespread disruption that's since been largely resolved. More than 94,000 users of X had reported issues with the site at 1:41 p.m. Hong Kong time on Thursday, according to Downdetector, which tracks website and service interruptions. The number of user-reported issues on the site formerly known as Twitter had dwindled to about 7,000 an hour later.
/jlne.ws/4ayy6Ub
A startup tested if ChatGPT and other AI chatbots could understand SEC filings. They failed about 70% of the time and only succeeded if told exactly where to look
Paolo Confino - Fortune
Wall Street financial types who hoped that AI would soon take over the tedious job of sifting through page after page of earnings reports might have to wait a little longer. It turns out AI models from some of the most prominent tech companies, including OpenAI, Meta, and Anthropic, are exceptionally bad at analyzing SEC filings and other financial documents.
/jlne.ws/3RB27u3
Allen & Overy rolls out AI contract negotiation tool in challenge to legal industry; Law firm works with Microsoft and AI start-up Harvey in attempt to 'disrupt the legal market before someone disrupts us'
Cristina Criddle and Suzi Ring - Financial Times
Allen & Overy has created an artificial intelligence contract negotiation tool, as the magic circle law firm pushes forward with technology that threatens to disrupt the traditional practices of the legal profession. The UK-headquartered group, in partnership with Microsoft and legal AI start-up Harvey, has developed the service which draws on existing templates for contracts, such as non-disclosure agreements and merger and acquisition terms, to draft new agreements that lawyers can then amend or accept.
/jlne.ws/487le5R
Apple's AI research signals ambition to catch up with Big Tech rivals; Paper suggests a focus on running the latest technology directly on an iPhone rather than via the internet
Tim Bradshaw - Financial Times
Apple's latest research about running large language models on smartphones offers the clearest signal yet that the iPhone maker plans to catch up with its Silicon Valley rivals in generative artificial intelligence. The paper, entitled "LLM in a Flash", offers a "solution to a current computational bottleneck", its researchers write.
/jlne.ws/3tBlStj
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| Cybersecurity | | Top stories for cybersecurity | 'Tis the Season! Avoiding Tech Toy Terrors of the Cybersecurity Kind
PRNewswire
The holiday season brings with it the joy of gifting, and there's a special magic in presenting loved ones with the latest technology. From innovative gadgets that spark creativity to interactive devices that bring families together, tech toys can add an extra layer of excitement and wonder to the festivities. Keeper Security, the leading provider of zero-trust and zero-knowledge cybersecurity software protecting passwords and passkeys, aims to raise awareness about the importance of safeguarding personal data and privacy as we navigate the festivities this year.
/jlne.ws/41z1zJx
BlackBerry posts surprise quarterly profit on resilient cybersecurity demand
Reuters
Canada's BlackBerry (BB.TO) reported a surprise quarterly profit on Wednesday, backed by a resilient demand for cybersecurity services amid rising online threats. While IT spending has dwindled over the past year, cybersecurity-related expenditure has remained stable as businesses and governments scramble to beef up their systems against hackers.
/jlne.ws/3Txy8pi
Balancing the Janus Face of AI: The Dual Impact on Cybersecurity in Investment Firms
Anup Kumar - The Trade
Artificial intelligence (AI), and particularly generative AI, will transform how investment firms are run as it permeates all aspects of operations, from due diligence to new investments, from how software is developed to how research is conducted. This transformation will include automating private market operations, enhancing data extraction and streamlining compliance. Right now, most firms are only beginning to experiment with AI and are encountering some initial barriers. Data quality may be lagging, infrastructure may be lacking, talent is a challenge and governance needs to be carefully considered. But those barriers will be overcome and over the next three to five years, the effect of AI on investment management productivity and efficiency will be transformative.
/jlne.ws/486Zqaq
China Cybersecurity: Data Security Risk Assessment Draft Rules Released by MIIT
Lexology
On 9 October 2023, China's Cybersecurity Administration Bureau of the Ministry of Industry and Information Technology (the "MIIT") released the Implementation Rules for Data Security Risk Assessment in the Industry and Information Technology Sectors (Draft for Comments) (the "Rules"). The Rules aim to provide guidance to local industry regulators and data processors in the field of industry and information technology on conducting risk assessment (the "Risk Assessment"). In this article, we will delve into the key aspects of this document and shed light on the compliance implications.
/jlne.ws/3NEfOY2
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| Cryptocurrencies | | Top stories for cryptocurrencies | Crypto Gets Crazy Again With Dog-Inspired Tokens and Bitcoin Eyeing $45,000
David Pan - Bloomberg
While optimism that US exchange-traded funds will soon be allowed to hold Bitcoin has dominated the headlines from crypto much of this year, the biggest gains have come as of late from memecoins and new-fangled nonfungible tokens. So-called altcoins such as Dogwifhat - yes, a dog pictured wearing a hat - are the hottest thing since, well the last time similar speculative tokens surged during the last bull market more than two years ago. Many of these tokens are jumping more than 1,000% in a matter of days while still trading at a fraction of a cent.
/jlne.ws/3va3RTz
China digital currency: Bank of China completes cross-border settlement for precious metals trading using e-CNY; The BOC transferred 100 million yuan from an overseas buyer, depositing the funds as digital yuan into a Shanghai Gold Exchange account; Since 2019, Beijing has been ramping up efforts to expand the project, officially named Digital Currency Electronic Payment, abroad
Coco Feng - South China Morning Post
China has been expanding the use of its sovereign digital currency in cross-border businesses, with the state-owned Bank of China completing the first cross-border settlement for precious metals trading. The bank's Shanghai branch transferred 100 million yuan (US$14 million) in cash from an overseas buyer, depositing the funds as digital yuan into an account under the Shanghai Gold Exchange, according to a Wednesday report by state-run newspaper Shanghai Securities News, citing a representative of the branch.
/jlne.ws/3RQDbjk
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| Politics | | An overview of politics as it relates to the financial markets | Stablecoin Push Unleashes Flood of Crypto Lobbying Cash in US Congress; Negotiations over US legislation draws continued interest; Crypto firms also gear up to spend on upcoming elections
Allyson Versprille and Bill Allison - Bloomberg
Lobbying over new guardrails for crypto stablecoins jumped for most of 2023, part of an overall surge in the industry's spending to sway legislative outcomes on Capitol Hill. The stakes around stablecoins are high because the tokens, which are supposed to be backed by safe and highly liquid assets like dollars or Treasuries, serve as the bridge between crypto and the traditional financial system. Federal regulation would lend legitimacy to the asset class that could lead to broader adoption.
/jlne.ws/41AXqVx
Trump Is About to Hear a Big Fraud Verdict; Whatever it is, the former president remains a threat to the rule of law and a threat to democracy.
Timothy L. O'Brien - Bloomberg
Donald Trump's civil fraud trial in New York is drawing to a close - testimony recently ended - and sometime in early 2024, a state judge will rule on the case. It's within the judge's power to impose a fine of as much as $250 million on Trump and permanently ban him and his company from ever doing business in New York again. The state where Trump grew rich may send him into financial exile.
/jlne.ws/3RTPZ8V
China Is Using Myanmar Civil War to Destroy Cyber Scam Networks; Thousands of suspects deported across border as of November; Young people without jobs at home vulnerable to fraud rings
Philip Heijmans and Josh Xiao - Bloomberg
A video began circulating on Myanmar social media circles last month. It depicted a man, who called himself Bi Huijun, issuing a stark warning to his family from what looked like a padded cell. We "earn money from telescams," Bi said, appearing to read from a script. "The Chinese government will absolutely make us pay with blood," he added, asking his relatives in Myanmar to immediately release victims hailing from across the border. Bi's video, which Bloomberg couldn't independently verify, is just one example of the ruling Communist Party's crackdown on criminal gangs that have scammed, kidnapped, and tortured its citizens. Thousands of suspects have been deported to China in recent months, laying bare the enormity of a problem the United Nations said has ensnared some 120,000 people in Myanmar alone.
/jlne.ws/3RP8kDZ
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| Regulation & Enforcement | | Stories about regulation and the law. | Three Arrows Founders' $1 Billion in Assets Frozen by Court; Co-founder Su Zhu was arrested in Singapore in September; Three Arrows imploded last year as leveraged bets blew up
Sidhartha Shukla - Bloomberg
Around $1 billion in assets belonging to the founders of cryptocurrency hedge fund Three Arrows Capital have been frozen by a British Virgin Islands court, according to the firm's liquidator.
The court issued an order preventing co-founders Su Zhu and Kyle Davies, as well as Davies' wife Kelly Chen, from transferring or selling assets worth up to $1.14 billion, the liquidator Teneo said in an emailed statement, adding that it estimates creditors are owed roughly $3.3 billion.
/jlne.ws/4aoMU81
Federal Court Enters Summary Judgment Against Convicted Florida Man and Orders Multiple Entities and Individuals to Pay Over $60 Million for Retail Forex Fraud Scheme
CFTC
The Commodity Futures Trading Commission today announced Judge Virginia Covington of the U.S. District Court for the Middle District of Florida entered a summary judgment order on December 6 for a permanent injunction, monetary sanctions, and equitable relief against Michael DaCorta of Florida. On December 15, Judge Covington also entered consent orders against Oasis International Group, Limited (OIG); Oasis Management, LLC (OM); Satellite Holdings Company (SHC); Florida residents Joseph Anile and Frank Duran; Pennsylvania resident Raymond Montie; and New York resident John Haas (the settling defendants).
/jlne.ws/3GRV9Md
Former director sentenced to 4 years and 4 months imprisonment
ASIC
Former director Mudasir Mohammed Naseeruddin has been sentenced to a total prison sentence of 4 years and 4 months for dishonest conduct and other charges. He will serve a non-parole period of 2 years and 9 months.
/jlne.ws/3TEDwat
SFC warns public of unauthorised investment product named EAsyGOld Trend and EAsyGOld Plus
SFC
The Securities and Futures Commission (SFC) today warned the public of an unauthorised investment product involving automatic trading systems which invest in gold contracts for differences named "EAsyGOld TrendTM" and "EAsyGOld PlusTM" (collectively as the Product). The Product has not been authorised by the SFC for offering to the Hong Kong public and is suspected to have breached the Securities and Futures Ordinance (SFO) (Notes 1 and 2).
/jlne.ws/3RvY1TY
Market Misconduct Tribunal sanctions Mayer Holdings Limited and its former senior management for late disclosure of inside information
SFC
The Market Misconduct Tribunal (MMT) has sanctioned Mayer Holdings Limited (Mayer) and nine of its former senior executives who were found to have failed to disclose inside information as soon as reasonably practicable as required under the Securities and Futures Ordinance (SFO). The sanctions were made following remitted proceedings after the Court of Appeal allowed appeals by Mayer and its directors against an earlier determination by the MMT (Notes 1 & 2).
/jlne.ws/3RxuNnN
FMA warns of increase in fake product disclosure statement scams targeting New Zealanders
FMA
The Financial Markets Authority (FMA) - Te Mana Tatai Hokohoko - is urging New Zealanders to remain vigilant and protect themselves from investment scams this holiday season. This comes during a period of escalating scam reports to the FMA. Recently, the FMA has published five warnings about scammers pretending to be from financial institutions here and abroad that send false product disclosure statements (PDS) for term deposits and bonds. The quality of these documents is becoming increasingly sophisticated and offer interest rates that look realistic but are marginally higher than legitimate offers and have induced people to hand over money.
/jlne.ws/3NBfM39
Warning on Scammers Impersonating as MAS Officers
Monetary Authority of Singapore
The Singapore Police Force (SPF) and the Monetary Authority of Singapore (MAS) warns the public on a Government Official Impersonation Scam variant, where scammers purportedly claim to be from, or be acting on behalf of, the MAS. Since January 2023, there have been at least 41 victims, with total losses amounting to at least $2.6 million.
/jlne.ws/3NCKVDn
Push payment fraud victims to get most of their money back; Banks must offer up to £415,000 reimbursement from next October, says regulator
Martha Muir - Financial Times
Victims of authorised push payment (APP) fraud will be able to claim a maximum £415,000 from banks and other payment service providers from October 2024. This means most of the money lost by scam victims will be returned, according to the Payment Systems Regulator (PSR), which announced the measure this week. Instances of APP fraud can include online investment scams and purchase rackets as well as victims being hoodwinked into sending money to fraudsters posing as friends, family or a company.
/jlne.ws/4ay4Tsw
Burned Investors Ask 'Where Were the Auditors?' A Court Says 'Who Cares?'; Judges request that SEC weigh in on case that could affect $17 billion industry
Jonathan Weil - The Wall Street Journal
One of the country's most influential courts has asked the nation's top securities regulator for its views on an uncomfortable subject: whether audit reports by outside accounting firms actually matter. The court already ruled that, at least in one case, they didn't. That case, where an insurer overstated profits and an auditor signed off on its books, led to an investor lawsuit against the auditor that was dismissed. In its ruling, the court said the audit report was so general an investor wouldn't have relied on it.
/jlne.ws/3tsNUY0
FASB Won't Consider Changes in Securities Accounting After Bank Failures; Requiring the fair value of HTM securities on the balance sheet wouldn't greatly benefit investors because it's already in the footnotes, rule maker says
Mark Maurer - The Wall Street Journal
The Financial Accounting Standards Board declined to consider any changes to how companies account for held-to-maturity securities, a debate revived in the wake of the failures this spring of banks with significant related unrealized losses. The debate over the accounting rules has repeatedly surfaced following financial crises, in the early 1990s after the savings-and-loan crisis and in 2010 after the 2008 financial crisis-and most recently with the collapse of Silicon Valley Bank.
/jlne.ws/486W4V8
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Traders Settle $160 Million Bonus Feud With Danish Utility; Traders claimed 1.1 billion kroner earned during energy crisis; Energi Danmark said bonuses were "illegal and invalid"
Sanne Wass - Bloomberg
Three energy traders agreed to receive just a fraction of the 1.1 billion Danish kroner ($160 million) in combined bonuses they had claimed after helping to amass huge profits for one of Denmark's largest utilities during the energy crisis last year. The traders sued their former employer Energi Danmark Group after it refused to pay the uncapped bonuses. They will now receive a total joint compensation of about 75 million kroner, including 11 million already paid, the firm said in a statement on Wednesday. They were fired back in April.
/jlne.ws/3v1JUOw
Rice Prices Scale Fresh 15-Year High as Supply Risks Linger
Anuradha Raghu - Bloomberg
Rice prices reached a fresh 15-year high on mounting concerns that increased demand and the impact of El Nino will further tighten supplies of the grain that is a staple for billions across Asia and Africa. Thai white rice 5% broken, an Asian benchmark, climbed 2.5% from the prior week to $650 a ton on Wednesday, according to the Thai Rice Exporters Association. That's the highest level since October 2008.
/jlne.ws/488oIoG
Fed and Markets Resume Their Unhealthy Co-Dependency; Monetary policy is once again swamping factors like economic growth and geopolitics for traders, threatening financial stability.
Mohamed A. El-Erian - Bloomberg
The Federal Reserve was supposed to leave center stage by the end of the year and let other factors play the leading role in determining asset prices in the advanced world and beyond. Instead, it has written itself an encore act that's full of confusion.
/jlne.ws/48ms1s6
Apple's $1 Trillion Rally Will Be Tough to Live Up To in 2024; Stock is looking expensive as Apple's challenges mount; Investors are developing riskier appetite as rally broadens
Subrat Patnaik - Bloomberg
Apple Inc. added nearly $1 trillion in market value this year. Such gains in 2024 will be harder to come by. As it looks to arrest four consecutive quarters of declining revenue, the world's most valuable publicly-traded company faces uncertainty in China, where government agencies are cracking down on foreign-made devices. Competition from Huawei Technologies Co. is intensifying, while Apple's smartwatch business faces a potential US ban days before Christmas.
/jlne.ws/4awyfrq
Parents Are Risking Their Retirements to Support Adult Children; With younger generations facing higher housing costs and a tricky job market, many are living at home and getting financial assistance from their families.
Paulina Cachero and Suzanne Woolley - Bloomberg
One day your child will grow up and leave you. Or will they? With younger generations facing tough economic circumstances, many parents are supporting their children long past the college years. Nearly half of young adults in the US live at home, and millions more are receiving help with rent, bills and everyday costs. For parents, it's a major expense, sometimes requiring greater debt loads, depleted savings and delayed retirement plans.
/jlne.ws/4ap0VTf
World's Best-Performing Stock of 2023 Gained Almost 600%; Down nearly 50% from July peak, Ecopro is still best performer; Short sellers got burned as retail army sparked Ecopro's rally
Youkyung Lee - Bloomberg
/jlne.ws/3NB9rVm
Discount London Office Deals Shows More Pain Coming for Lenders; Values are dropping as construction and finance costs rise; Secondhand office stock has become a liability for many owners
Jack Sidders and Lucca De Paoli - Bloomberg
/jlne.ws/3Nxa9CL
Jump in US overnight lending rates awakens fears of money market strains; Sofr's brief divergence from Fed's repo rate has rattled investors
Jennifer Hughes - Financial Times
/jlne.ws/3GYNGLb
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | BrandWatch: Can business bridge the gulf between net-zero target setting and transformation?
Oliver Balch - Reuters
Summary. Over 200 brands committed to phase out fossil fuels in We Mean Business's Fossil to Clean campaign. WBCSD CEO Guide aims to help finance teams convey to financial markets value in climate action. CDP reveals 56% of 23,000 disclosers gave no data on energy consumption, and 31% use no renewable energy. PwC finds 'unfortunate' number of executives have no climate plan amid drop in investor interest in ESG. Interventionists warn companies won't decarbonise voluntarily and call for regulation and subsidies. Corporate attendees were keen to use the 10-day climate meeting as a launchpad for bold new commitments and initiatives, and more than 200 brands committed to phase out their use of fossil fuels in the We Mean Business Coalition's Fossil to Clean campaign. With the desert dust now washed from their shoes, the challenge for the business delegates is clear: how to translate their laudable goals into concrete action?
/jlne.ws/488f3OU
What's 'Greenwashing' and How Can I Avoid It?
Jacqueline Poh - Bloomberg
Over the last decade, companies and investors have come to pay more attention to environmental concerns, often with a goal of offering "green" products or making "green" investments. But the companion of green is often what's known as greenwashing. In some countries, regulators are trying to clean up the field, launching investigations and levying fines. They have the backing of some advocates of environmentally minded investing worried that greenwashing's taint may undermine the field. 1. What is greenwashing? It's the use of misleading labels or advertising to create an undeserved image of environmental responsibility. https://jlne.ws/3th3XIw
Orsted to press ahead with world's largest offshore wind farm in North Sea; Hornsea 3 project off the Yorkshire coast will be able to supply power for about 3.3mn homes.
Rachel Millard - Financial Times
Orsted is to press ahead with developing the world's largest offshore wind farm in the North Sea after the UK increased financial support for the sector in a big boost for the Danish group after a string of setbacks. The Copenhagen-listed company made the announcement on Wednesday about the 2.9GW Hornsea 3 project off the Yorkshire coast, which will be able to supply power for about 3.3mn homes.
/jlne.ws/3vcb3yr
Fossil fuel bond failure leaves UK's largest pension funds open to legal risk
Client Earth
Many of the UK's biggest pension providers are failing to use a critical financial lever in their engagement with fossil fuel companies and are opening the door to legal risk, environmental lawyers warn. ClientEarth has written to the UK's 12 largest pension funds in the UK to say that - despite some meaningful shareholder engagement - funds have yet to focus on their bond investments, which are a much bigger yet lesser-known source of fossil fuel financing. Bonds are fixed-term loans investors provide to either governments or companies and they underpin the financing of fossil fuels. 50 percent of fossil fuel financing comes from corporate bonds, according to the Toxic Bonds Initiative, and bonds account for the largest source of financing for coal in China and India.
/jlne.ws/4ax6M8K
German Wind Power Hits Record as Storms Batter North Europe; Generation from turbines beats previous peak set in January; Clean energy accounts for more than 50% of Germany's power
Lars Paulsson and Petra Sorge - Bloomberg
German wind power output reached a record high on Thursday as a storm covering northern Europe boosts generation across the region. Production from the thousands of turbines in the nation reached 53,013 megawatts at 11 a.m. Berlin time, according to European Energy Exchange data. That eclipsed the previous peak of 50,802 megawatts set in January. Output in the UK and the Nordic nations also surged.
/jlne.ws/48j7PaQ
ESG funds suffer weaker demand despite help from tech-sector performance
Ross Kerber, Tommy Wilkes and Isla Binnie - Reuters
/jlne.ws/3NB8k7Y
Canada strikes first deal to backstop carbon credit prices
Nia Williams - Reuters
/jlne.ws/3v7c4Yt
Electric Cars With Recycled Batteries Are the Next Green Holy Grail; The flood of used cells could be a key advantage for China, if it gets it right.
Bloomberg News
/jlne.ws/3RNuOoN
One Last Postcard From the Future of Clean Energy; Nat Bullard looks back on his long-running column, Sparklines.
Nathaniel Bullard - Bloomberg
/jlne.ws/4aIMg5x
California's Push for Rooftop Solar Panels Isn't Going So Well Right Now; State subsidy cuts combined with high interest rates are slowing solar installations - and costing green jobs.
Michelle Ma and Tope Alake - Bloomberg
/jlne.ws/48bJOTd
German Wind Power Hits Record as Storms Batter North Europe; Generation from turbines beats previous peak set in January; Clean energy accounts for more than 50% of Germany's power
Lars Paulsson and Petra Sorge - Bloomberg
/jlne.ws/3GSXczK
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Barclays Delays Bonus Pool Decision for Last-Minute Mandates; Top bankers want pool to reflect mandates won recently; Firm had to contend with an exodus of bankers this year
Jan-Henrik Foerster - Bloomberg
Barclays Plc has delayed the final decision on the bonus pool for this year after top investment bankers asked for more time to reflect business they won in recent days or expect to win. Investment bankers argue capital-markets activity has been picking up and that the bonus pool should take that into account, according to people familiar with the matter. The decision has now been delayed to early next year, after business leaders had asked the remuneration committee for extra time, the people said, asking not to be identified because the discussions are private.
/jlne.ws/3th5Xk0
Barclays agrees deal to stay at London's Canary Wharf until 2039; UK bank agrees five-year lease extension on its 32-storey headquarters building
Joshua Oliver - Financial Times
Barclays has reached a deal to stay in its Canary Wharf headquarters until at least 2039, in a boost to London's docklands financial centre after other high-profile tenants opted to move elsewhere. The bank has agreed a five-year lease extension on its 32-storey tower at One Churchill Place, its base since 2005. It will also pay at least £260mn in a separate deal to hand its tenancy of a second building, 10 Cabot Square, back to Canary Wharf Group (CWG).
/jlne.ws/4arq1Rb
Wells Fargo branch workers vote to form union in a first for major US bank; Move comes amid a wider embrace of labour movement by employees in American workplaces
Taylor Nicole Rogers and Stephen Gandel - Financial Times
Workers at a Wells Fargo bank branch in Albuquerque on Wednesday voted to form a union, making them the first employees of a major US bank to unionise in the latest sign of the resurgence of the labour movement in America. The workers, who voted 5-3 in favour of organising, will be part of Wells Fargo Workers United, a union formed in 2021 that is associated with the Communications Workers of America. The election was overseen by the National Labor Relations Board.
/jlne.ws/41NpoxH
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | What Should You Do When Work Gets Weird? Introducing Sad Desk Salad, Bloomberg Businessweek's work advice column by Anna Holmes.
Bloomberg Businessweek
Sometimes, work can get a little weird. What happens when you see your boss on a hookup app? What do you do when you find out your colleague gets paid a lot more than you do? How do you handle loud co-workers or managers with bad manners?
/jlne.ws/4awxMFG
What I Got Wrong About Remote Work; Working from home offers more flexibility, which should make it easier to see our friends. That largely hasn't happened.
Sarah Green Carmichael - Bloomberg
The end of one year and the start of another is always a good time to admit one's mistakes. And I got something wrong - really wrong - about remote work. In 2020, when offices shuttered and many knowledge workers began routinely clocking in from home, many skeptics decried the arrangement's loneliness and isolation. This, I argued, was shortsighted - because although remote workers might be alone much of the day, it's perfectly possible (in normal, non-pandemic times) to have a social life outside of work.
/jlne.ws/3RRbSp6
Recruitment & Hiring: The Problem With References
Patricia Lenkov - Forbes
Recruitment 101 includes references as a core component of a thorough hiring process. A Google search of "references" yields infinite results. There is endless speculation on who to ask for references, how many are appropriate, and how to properly list them on a resume, among other ponderings on this topic. But for those of us in "the business," there are a multitude of referencing misunderstandings and misuses:
/jlne.ws/48sHwis
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| Wellness Exchange | | An Exchange of Health and Wellness Information | New coronavirus variant JN.1 is spreading fast. Here's what to know.
Frances Vinall and Fenit Nirappil - The Washington Post
The World Health Organization on Tuesday declared coronavirus subvariant JN.1 a variant of interest "due to its rapidly increasing spread." It made up about 3 percent of all coronavirus cases in early November, but 27.1 percent a month later globally, the WHO said. It anticipates JN.1's emergence may cause an increase in cases, especially in countries experiencing winter.
/jlne.ws/47aLHy2
Covid Infects 1 in 24 People in England and Scotland as JN.1 Variant Spreads
Deirdre Hipwell - Bloomberg
About 1 in every 24 people in England and Scotland has Covid-19, with London the worst-affected area as the highly infectious JN.1 variant spreads rapidly. The prevalence of Covid is also highest in people from 18 to 44 years old, according to a joint report by the UK Health Security Agency and the Office for National Statistics released Thursday.
/jlne.ws/3vfZ3f8
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | The Five Countries Acting as Economic 'Connectors' in a Fragmented World; In this Big Take podcast, US-China tensions and other global realignments are creating an opening for countries including Vietnam, Poland and Indonesia
Federica Romaniello - Bloomberg (Big take podcast)
Tensions continue to grow between China and the big economic powers in Europe and the United States. Russia's invasion of Ukraine and the war between Israel and Hamas are adding global uncertainty. As new geopolitical fault lines form, some nations are straddling them to emerge as new economic connectors, according to an analysis of trade and investment data by Bloomberg Economics and Bloomberg Businessweek.
/jlne.ws/3NCImRL
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