| March 04, 2022 | "Irreverent, but never irrelevant" | | |  | John Lothian
Publisher
John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
Move forward. There is only one direction to go. Your command today is to March Fo(u)rth. For me, it is a way of life since birth.
Comedian Jon Stewart, who now has a show "The Problem with Jon Stewart" has a new episode that looks at the stock market, payment for order flow, Redittors, Citadel, Robin Hood, Dark Pools and Bernie Madoff. It is not to be missed. This is an epic Stewart rant bound to make an impact. The episode is titled "How Redditors Exposed The Stock Market." It was our third most clicked story yesterday.
Walt Lukken has declared Boca 2022 a tie free zone, so leave your neckwear in your closet back home. Also, the ICE Energy Breakfast on Wednesday will feature Texas Governor Greg Abbott and Harold Hamm, Continental Resources founder and chairman.
Hamm is the chairman of something called the Domestic Energy Producers Alliance, or DEPA. DEPA is a collaboration of 29 coalition associations, representing over 10,000 individuals and companies, it claims on its website.
In April of 2020, DEPA posted on its website this notice:
"Continental Resources, Inc. is requesting an immediate investigation by the Commodity Futures Trading Commission (CFTC) of WTI crude oil futures traded on the Chicago Mercantile Exchange (CME) for possible market manipulation, failed systems or computer programming failures in the WTI prompt month May (20), and oil futures contracts on the CME. Continental has also lodged a complaint with CME. As shown below, the unprecedented, historical event of WTI crude oil trading at negative prices for the first time in history and the circumstances surrounding the trading shows the system failed, negatively impacting a significant part of the American economy. Not only did WTI crude futures trade negative, they settled at a bizarre minus $37.63." If Hamm is going to discuss this, it should be a pretty interesting breakfast.
Later Wednesday morning, the chief policy officer of Coinbase, Faryar Shirzad, will be part of a fireside chat. I am not sure why we need a fire in Boca, but OK.
We will also hear from the former chief economist at Lloyd's Bank, Professor Trevor Williams, on Thursday, who will present a keynote sponsored by Microsoft.
Luc Fortin, CEO and President, Montreal Exchange and global head of trading at TMX Group was interviewed by Vince Molinari on the site Fintech.TV. They discussed ESG investing, how derivatives can help you manage risk and more.
Les Male, the CEO of the Dubai Gold & Commodities Exchange was interviewed on a new program on CNBCAfrica called "Captains of Industry." Male spoke with CNBCAfrica's Godfrey Mutizwa about what keeps him up awake at night in this covid times and what the future of commodities and exchanges might be in a crypto world. It is an apt question, if you ask me.
Registration is open for the Derivatives Forum Frankfurt 2022. You can register for the hybrid event to be held on May 24 and 25 at derivativesforumregistration.eurex.com.
In media news, CNN reported RT America, the Russian state-funded media network has ceased production and layed off most of its staff, permanently. Also, the Daily Beast (not a source we normally quote) reported that former Fox News Director Jack Hanick was indicted for helping Russia launch a propaganda network.
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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'They crowdsourced a way of rooting out corruption,' Jon Stewart praises Reddit Apes in interview with SEC's Gensler
Chris Matthews - MarketWatch
Jon Stewart lavished praise on the social-media investment movement that drove up prices in meme stocks like GameStop Corp. and AMC Entertainment Holdings Inc. and focused the country's attention on a controversial aspect of the U.S. stock market called payment for order flow in an episode of his show The Problem With Jon Stewart, airing Wednesday.
/jlne.ws/3hz9vof
**** Well worth the watch.~JJL
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The Bond King's Genius Was No Match for His Ego; In an excerpt from her new book, Mary Childs, the co-host of NPR's Planet Money, takes a close look at the rise and fall of billionaire investor Bill Gross.
Mary Childs - Bloomberg
I. Team Bonding
When Bill Gross started his career in investing in the fixed-income department of a sleepy life insurance company in the 1970s, bonds were just pieces of paper stored in vaults. Gross soon became the face of a revolution: actively trading those pieces of paper in pursuit of price appreciation. He was good at it—by most accounts, the best. He and Pacific Investment Management Co., the firm he co-founded, reigned over the bond market for decades, earning Gross the title of "Bond King." From the outside, he seemed folksy, if a bit eccentric, and Pimco appeared polished and professional. The truth was more complicated.
/jlne.ws/3MnGWbf
***** There does seem to be at least the appearance of an above average number of %^&^&*()'s at firms like this. ~JJL
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Thursday's Top Three
Our most read story Thursday was Crain's Chicago Business Joseph Ritchie, who brought computerized trading to Chicago's pits, dies at 75. Second was from TheStreet Billionaire Ken Griffin Admits He Was Wrong About Bitcoin, Crypto. And third, The Problem with Jon Stewart Stock Market - The rise of e-brokers was meant to democratize the stock market--yet inequality in the market has actually worsened. How can it be fixed?
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| All MarketsWiki Sponsors» | | | | | | | John Lothian News (JLN) is the news division of John J. Lothian & Company, Inc. (JJLCO). The online media and financial services firm is staffed by derivatives industry, journalism and technology professionals. | | | | | | | John Lothian News Editorial Staff: | | | John Lothian
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| Lead Stories | Wheat Mounts Historic Week as War Sparks Deepening Supply Fears; Futures in Chicago jump by the maximum exchange limit; Scorching gains piling pressure on global food inflation
Megan Durisin and James Poole - Bloomberg
Chicago futures for the grain have soared 40% -- the most ever -- as Russia's war in Ukraine upends global grain supplies. That puts prices at a 14-year high, and milling wheat in Paris reached an unprecedented 400 euros ($438 per ton). The war is stalling shipments from one of the world's most vital breadbaskets. Ukraine and Russia together account for a quarter of global trade of the staple, used in everything from bread to couscous and noodles. The conflict has closed major ports in Ukraine, and severed logistics and transport links. Trade with Russia has also been stifled by the complexity of navigating sanctions and soaring insurance and freight costs.
/jlne.ws/3hFTooG
Biden's CFTC Nominees Call for More Powers to Police Crypto
Benjamin Bain - Bloomberg
President Joe Biden's four nominees to join the Commodity Futures Trading Commission told lawmakers that the main U.S. derivatives overseer should take on new responsibilities regulating cryptocurrencies. At their confirmation hearing before the Senate Agriculture Committee on Wednesday, the nominees said the agency's history overseeing crypto derivatives positions it well to do more to oversee digital assets. Rostin Behnam, who chairs the agency, told lawmakers last month that they should consider giving the regulator more authority and a budget increase of at least $100 million.
/jlne.ws/3pwzvFa
War in Ukraine threatens the global financial system
Gillian Tett - FT
Back then, he was working at the Federal Reserve investigating the plumbing of the credit world. When Lehman Brothers collapsed in 2008, he saw how unexamined interlinkages in the market's financial "pipes" could generate unexpected shocks, particularly in the tri-party repurchase sector (where short-term loans are extended against collateral between multiple parties). Today, however, Poszar is pondering whether a similar chain reaction might occur as a result of western sanctions on Russian institutions.
/jlne.ws/3IF0F47
JPMorgan Warns Russia Faces 1998-Like Collapse in Economy
Paul Abelsky - Bloomberg
Russia is on course for an economic collapse that will rival or even eclipse the size of the 1998 slump which followed its debt default, although the financial fallout may be less than then. Days after President Vladimir Putin ordered troops into Ukraine, economists are starting to publish forecasts for what is currently the world's eleventh largest economy, even though they warn the outlook is opaque and subject to revision.
/jlne.ws/3pD0sqC
Russia Accused of Nuclear 'Terrorism' as World Looks on Aghast; Ukraine Says Russian forces targeted a nuclear power plant; Russia says it's held the plant for days, cites 'provocation'
Daryna Krasnolutska, Natalia Drozdiak, and Milda Seputyte - Bloomberg
President Vladimir Putin was denounced for his "recklessness" after Ukraine said that Russian forces attacked a nuclear power plant, raising the stakes in the nine-day-old war and prompting calls for an even more robust response to the Kremlin's aggression.
/jlne.ws/35nUZNG
**** From FOX2 Detroit: What should you do in case of a nuclear explosion? U.S. government updates guidance
What Happens to Indexes and Funds That Need to Dump Russia?
Sydney Maki - Bloomberg
Russia's expulsion from much of the world's financial system presents a vexing problem for the global index business -- and for the funds that track them. Providers of these closely watched collections of stocks or bonds -- followed on autopilot by trillions of dollars in passive investments, and used as a benchmark for trillions more in active strategies -- are grappling with whether and how to extract the country's securities. As some begin stripping out these practically untradeable assets, it's causing big problems.
/jlne.ws/3vCYDOd
How Bitcoin and a Crypto Exchange Became Part of Ukraine's War Effort; Kuna, Ukraine's largest crypto exchange, has emerged as central hub for the country's efforts to raise funds via cryptocurrencies
Paul Vigna - WSJ
The founder of Ukraine's largest cryptocurrency exchange, Kuna, has been sleeping only a few hours a day since Russia invaded his country. Trading of cryptocurrencies on Kuna has jumped since the war began. The surge is, in part, a consequence of strict capital controls implemented by the Ukrainian central bank: limits on ATM withdrawals, restrictions on the country's official electronic-currency system and suspension of the foreign-exchange market. But cryptocurrency and Kuna are also providing a vehicle for outsiders to donate to Ukraine, raising funds for the government and relief efforts.
/jlne.ws/3vDIfgh
Why Nasdaq CEO Adena Friedman Is Demanding Diversity on Corporate Boards
Alana Semuels - Time
Adena Friedman grew up hanging out at the trading desk at investment firm T. Rowe Price—her father's workplace—and calls herself a "big believer" in the power of capitalism. But it's become evident, she says, that capitalism isn't easily accessible to all. Less than 3% of venture capital in the U.S. goes to women-led companies and only 1% to Black and Latinx founders. Friedman believes Nasdaq, the exchange founded in 1971 to expand access to financial markets, has a role to play in ensuring "capitalism works for everyone."
/jlne.ws/3Kf0Za5
The Default Question Hangs Over Russia's Frozen Bond Market; Russia is at risk of its first sovereign default since 1998; Some analysts see potential payment workarounds in China
Bloomberg News
The big question now facing Russian debt owners is whether they ever get their money back. The government is paying its bond coupons for now, but with the war in Ukraine raging and foreign reserves frozen, it's unclear how or when investors will receive their cash. Even though the central bank called the ban on transferring coupon payments temporary, the financial meltdown has been so severe that no one knows how it will be repaired or whether Russia would even have any motivation to service debt.
/jlne.ws/3sE5Pru
We Already Have a Solution for Oil's Price Shock; There's an opportunity to close budget gaps, reduce petroleum demand and cut emissions, all at once. The answer lies in public transit.
David Fickling - Bloomberg
You don't need to look at how close crude is getting to its all-time record high of $147.50 a barrel to know what a world struggling with elevated oil prices looks like. For most of humanity, we're already there. In nominal local-currency terms, countries accounting for at least a third of global oil consumption are already paying more than they ever had. Members of the euro zone and India, the largest consumers of crude after the U.S. and China, surpassed their previous record prices on Wednesday and Monday, respectively. Brazil, Mexico and Indonesia are all in the same boat:
/jlne.ws/3KyoFXl
Borrowed money funded share purchases by 'Spac king' Palihapitiya; Blank-cheque company promoter was lent $200mn for marquee deals while touting 'skin in the game'
Miles Kruppa, Antoine Gara - FT
Chamath Palihapitiya, the most vocal promoter of a new wave of blank-cheque companies, financed two signature deals with borrowed money while emphasising the importance of sponsors having their own capital at risk. The investor is known as the 'Spac king' for his series of special purpose acquisition companies, which raise capital by listing on the stock market and then seek a merger with a target company. His deal to take the space tourism company Virgin Galactic public in 2019 sparked renewed interest in Spacs, bankers said.
/jlne.ws/3Kb9Fya
IEA calls on EU not to renew Gazprom contracts; Energy agency sets out 10-point plan to reduce region's imports of Russian gas within a year
Tom Wilson and Camilla Hodgson - FT
The International Energy Agency urged the EU to sign no new supply contracts with Gazprom as it set out a 10-point plan to reduce the region's imports of Russian gas by a third within a year. Gas import contracts covering more than 15 billion cubic metres (bcm) of annual gas, roughly 12 per cent of Russian supplies into Europe, are due to expire this year and should not be renewed, Fatih Birol, IEA executive director said at a press conference with EU officials on Thursday.
/jlne.ws/35zDWbc
Commodity Funds Draw Bets Ukraine Invasion, Russia Sanctions Will Stoke Rally; The war has gripped global markets, lifting prices of raw materials including wheat and aluminum as investors wager on persistence of inflation
Hardika Singh - WSJ
Investors are raising bets that the invasion of Ukraine and sanctions on Russia will further fuel an already-hot commodities rally. War has gripped global markets, lifting prices for a number of raw materials. Wheat has surge to its highest level since 2008. Corn prices have jumped around 25% so far this year, earlier this week touching their highest levels since March 2013 before paring gains. Aluminum and nickel have jumped to their highest levels in over a decade.
/jlne.ws/3KkHjSn
Why China's Banks Won't Come to Russia's Rescue; The risk of additional sanctions deters Chinese lenders, while a fledgling payment network relies on the Swift global system
Jing Yang - WSJ
On paper, China's banks and its homegrown payments system could offer Russia respite from crippling Western sanctions. In practice, it isn't that simple. The impasse shows how hard it is for Beijing and Moscow to circumvent the dollar-centric international financial system—despite the duo's shared interest, and even though China has some experience in helping other nations evade sanctions.
/jlne.ws/3hF6iU8
Nasdaq warns regulators should exercise caution around 'coarse' and 'blunt' restrictions to dark trading; Federation of European Securities Exchanges (FESE) member has implored regulators to respect the "legitimate needs" of investors for non-displayed orders.
Annabel Smith - The Trade
Nasdaq has warned US regulators to resist the temptation to limit dark trading through "coarse caps" and "blunt restrictions". In its report, the European exchange and member of the Federation of European Securities Exchanges (FESE) has said the US regulators should take heed from lessons learned from the implementation of MiFID II and exercise caution around restricting dark trading too heavily.
/jlne.ws/3IM0NyE
LCH defaults Russia's VTB as clearing member; Follows the London Stock Exchange Group's move to halt VTB Capital's trading membership on 27 February.
Annabel Smith - The Trade
The London Stock Exchange Group's (LSEG) clearing arm, LCH, has placed VTB Capital in default as a clearing member. LCH said in a notice to its clearing members on 3 March that it had issued a default notice for VTB Capital which had been a clearing member and participant in its EquityClear service.
/jlne.ws/3Kf1LUp
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Moderna, WHO Set for Vaccine Clash as Patents Threaten mRNA Use; Similar patents rejected or lapsed in China, Australia: MSF; South Africa is site of WHO's mRNA Technology Transfer Hub
Antony Sguazzin - Bloomberg
Moderna Inc. is heading for a clash with the South African government and the World Health Organization over patent claims that vaccine advocates say could threaten the continent's access to Covid-19 shots.
/jlne.ws/3MjN30m
Hong Kong suspends court system as virus crisis deepens
Business Times
Hong Kong on Friday announced it would suspend court services for a month as the city recorded more than 50,000 new coronavirus cases for the third consecutive day. The finance hub is in the throes of its worst outbreak to date, overwhelming hospitals and shattering the city's zero-Covid strategy.
/jlne.ws/3HM25se
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | The World Federation of Exchanges Identifies Policy Levers to Encourage SME Listings
WFE
The World Federation of Exchanges (WFE), the global industry group for exchanges and CCPs, today published a report on how the flexibilities for listed issuers, introduced as a result of the pandemic, could be used to stimulate SME listing in the future. Drawing upon the initial findings of a WFE member survey on covid-related issuer flexibilities, today's paper studies how exchanges worked closely with wider stakeholders -- including regulators, governmental departments, and institutional investors -- to help companies deal with the challenges of the pandemic. The paper acts as a stock take of the measures that were introduced but also considers whether some of these relaxations are fit for purpose as we 'build back better' following the pandemic. In particular, the paper notes:
/jlne.ws/3rfBM8T
ASX Group monthly activity report
ASX
Attached is a copy of the ASX Group Monthly Activity Report for February 2022.
/bit.ly/3sGw54D
Change of company secretary
ASX
ASX advises that Daniel Csillag has resigned as a Company Secretary of ASX Limited effective today. The Board wishes to thank Mr Csillag for his service to ASX as a Company Secretary over the last decade. Daniel Moran continues as the person nominated under Listing Rule 12.6 for communication with ASIC with regard to Listing Rule matters.
/bit.ly/3sGw54D
BME Growth welcomes Enerside Energy
BME
BME Growth today welcomed ENERSIDE ENERGY, during an event held in the Madrid stock exchange. The traditional bell ringing ceremony was led by Joatham-John Grange i Sabaté and Antoni Gasch Domenjó, respectively, CEO and VP Engineering & Operations of the company, who were accompanied by Jesús González Nieto-Márquez, General Manager of BME Growth.
The company, which is the first to join this BME market so far this year, set a reference price of 5.46 euros, which is the subscription price of the capital increases carried out by the company, giving a total valuation of the company of 203.79 million euros.
/bit.ly/3CesUnF
Daimler Truck and Hannover Re new in the DAX; Further changes in the MDAX, SDAX and TecDAX
Deutsche Börse Group
STOXX Ltd., the global index provider of Qontigo, has announced changes to the DAX index family effective March 21, 2022. These selection indices represent the largest companies in the Regulated Market of the Frankfurt Stock Exchange. They are selected by free float market capitalization and reviewed every three months.
/bit.ly/35LzLsH
EEX Group Monthly Volumes - February 2022
EEX
EEX Group reports the February volumes including the following highlights: Power
The European Spot markets reached a volume of 49.9 TWh with Intraday Spot markets growing by 10% to 10.6 TWh during the last month. European Power Derivatives markets achieved a trading volume of 407.7 TWh, which marks an increase of 16% compared to February 2021. Increases in the majority of the European Power markets led to this result, especially in the German (+20%), Italian (+19%), Dutch (+58%) and Swiss (+112%) Power Futures.
/bit.ly/3vEhDvY
Equity Index market briefing March 2022
Zubin Ramdarshan - Eurex
The past week's events in Ukraine have cast a shadow over us all. However, at a human level, it has been hugely encouraging to witness the immense support and willingness for a positive outcome for the people impacted.
/jlne.ws/3hFUssE
Index derivatives: Termination of trading in RDX® USD Index Derivatives - Details for the Fair Value Settlement
Eurex
As announced in Eurex Circular 024/22, the Management Board of Eurex Deutschland has decided to terminate trading in RDX® USD Index Derivatives (FRDX, ORDX), effective 3 March 2022 at the close of trading 17:30 CET (22:00 CET for FRDX), as orderly trading seems not to be ensured anymore.
/jlne.ws/3hzSsSW
Elliptic Labs transfers to Oslo Børs main market
Euronext
Oslo Børs, part of the Euronext Group, today congratulates the technology company Elliptic Labs on its transfer from Euronext Growth Oslo to the main list (ticker code: ELABS).
/jlne.ws/3hIaT7K
ICE Announces Record Growth in Renewable Fuel Contracts
ICE
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, today announced rapid growth in its U.S. Renewable Identification Numbers (RINs) and European Biofuels derivatives, reflecting the increasing use of biofuels by the road transportation sector to reduce emissions.
/jlne.ws/35FVSRj
MGEX Reports Trading Results for February 2022; Sets February and Year-to-Date Volume Records
MGEX
Minneapolis Grain Exchange (MGEXTM), a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), today reported record February 2022 trading volume of 311,768 contracts, a 7.6% increase from February 2021 and representing the highest volume total for February in MGEX history. Total year-to-date volume reached a record 588,919 contracts, an increase of 11.4% from the same period in 2021.
/jlne.ws/3ISvC4I
Government of Telangana & NSE sign Mou to fuel growth of MSME's in the State
NSE
India's leading stock exchange, the National Stock Exchange of India Ltd. (NSE) and the Government of Telangana have signed a Memorandum of Understanding (MoU) to help catapult MSMEs in the State to the next level of growth.
/bit.ly/3sG0cZI
Taiwan Futures Exchange Newsletter
TAIFEX
News and Events Trading in Products and Night Session Continues to Grow in February Taiwan Futures Exchange (TAIFEX) reported a total volume of 24,932,457 contracts with an average daily volume (ADV) of 1,662,164 contracts traded in the month. Continuing its stellar performance in 2021, Single Stock Futures (STF) showed steady growth and marked an increase of 16.70% to 282,478 contracts in monthly ADV year-over-year (YoY), while in the offshore equity index category, Nasdaq-100 Futures and DJIA Futures posted monthly ADV growth of 97.37% to 6,927 contracts and 37.80% to 5,193 contracts, respectively. The Mini Electronics Sector Futures, launched in June 2021, also saw ADV growth of 9.15% to 3,960 contracts in February as compared to last year. Meanwhile, the ADV of overnight trading rose 26.71% in the month over the same period of 2021, accounting for 26.69% of the total volume.
/bit.ly/35vUQYr
TMX Group Consolidated Trading Statistics - February 2022
TMX
TMX Group Limited today announced February 2022 trading statistics for its marketplaces - Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange and Montréal Exchange.
/bit.ly/3sG1LXA
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | How Block (Square) avoided death by Amazon
Ryan Browne - CNBC
In 2014, Amazon launched a product that sounded strikingly similar to something already on offer from Twitter co-founder Jack Dorsey's payments company Square, which is today known as Block.
It was called Amazon Register, and it would let small businesses accept credit card payments using a smartphone or tablet computer, just like Block's technology. There was one key difference, though: Amazon offered processing fees of as low as 1.75%, compared to the 2.75% rate from Block.
/jlne.ws/3Khupo1
European fintech's fierce last year of funding shows no sign of slowing in 2022
Jill Petzinger - Tech.eu
Ahead of our Online: Fintech event next week, we took a look at our funding and exits data for the sector.
"Shut up and take my money!" pretty much sums up the attitude of investors towards European fintech companies last year. The fintech sector attracted a record EUR23.5 billion over 695 deals, and there were 58 financing rounds of over EUR100 million each. July was the hottest month for funding, with the total amount raised hitting EUR3.2 billion.
/jlne.ws/35sYhio
5 reasons why fintech M&A is hitting new highs
Miriam Cross - American Banker
The most active year yet for fintech mergers and acquisitions was 2021, and enthusiasm for such deals is still strong in 2022.
Announced deals totaled $348.5 billion in 2021, according to FT Partners, an investment banking firm focused on financial technology. This was partially driven by a record number of exits in 2021, which left venture capitalists flush with cash that they could recycle back into fintechs, as well as record levels of funding, with U.S. fintechs raising $50 billion in 2021 — more than twice what they raised in 2020.
/jlne.ws/3KhuCYl
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| Cybersecurity | | Top stories for cybersecurity | U.S. Treasury warns crypto firms on Russia cybersecurity threat - source
Hannah Lang - Reuters
The U.S. Treasury Department has reached out to cryptocurrency companies about their cybersecurity controls amid concerns that Russia could wage retaliatory cyber attacks in response to Western sanctions, according to a person familiar with the situation.
/jlne.ws/35LTB7k
Cybersecurity a Focus for Biden-Harris Administration in 2022
Michael E. Clark and Mysty Blagg - CPO Magazine
The Biden-Harris Administration made cybersecurity a top priority when President Biden signed Executive Order (EO) 14028 indicating that preventing, detecting, assessing, and remediating cybersecurity incidents in federal government networks would be a focus. Since the signing of EO 14028, the U.S. Department of Justice (DOJ) announced a Cyber-Fraud Initiative, the U.S. Department of Homeland Security formed a Cyber Safety Review Board (CSRB), and the Federal Trade Commission (FTC) announced its intention to seek enforcement actions against organizations that fail to mitigate known cybersecurity vulnerabilities. Since all signs indicate the government will continue its focus on improving cybersecurity related to the services and products provided by government contractors, organizations should prepare for heightened scrutiny from multiple government agencies over their organizational cybersecurity standards and incident responses.
/jlne.ws/3pBXXEU
7 Pressing Cybersecurity Questions Boards Need to Ask
Dr. Keri Pearlson and Nelson Novaes Neto - Harvard Business Review
For every new technology that cybersecurity professionals invent, it's only a matter of time until malicious actors find a way around it. We need new leadership approaches as we move into the next phase of securing our organizations. For Boards of Directors (BODs), this requires developing new ways to carry out their fiduciary responsibility to shareholders, and oversight responsibility for managing business risk. Directors can no longer abdicate oversight of cybersecurity or simply delegate it to operating managers. They must be knowledgeable leaders who prioritize cybersecurity and personally demonstrate their commitment. Many directors know this, but still seek answers on how to proceed.
/jlne.ws/3Kejhs3
SEC to Meet on Cybersecurity Amid Fear of Russian Threat to Financial Sector
Mariam Baksh - Nextgov
The Securities and Exchange Commission will meet March 9 to consider changes to its cybersecurity enforcement as lawmakers look to bolster the financial sector from disturbance following the exclusion of Russian banks from the Society for Worldwide Interbank Financial Telecommunication, or SWIFT, and other sanctions against Russian entities.
"The Commission will consider whether to propose amendments regarding cybersecurity risk management, strategy, governance and incident disclosure," according to a notice set to publish in the Federal Register.
/jlne.ws/3vBXOVZ
'Shields Up' on Cybersecurity in Wake of Ukraine Conflict
Harris Beach PLLC - Kelly Griffith, Alan Winchester
Fears of cybersecurity attacks are mounting in the wake of the Russian invasion of Ukraine. From the war itself, a number of malware variants have been created and are circulating on the internet.
In addition, with the stiff economic sanctions, Russian state-sponsored criminal organizations are seeking to accumulate more Bitcoin or other cryptocurrencies using techniques such as ransomware.
/jlne.ws/3pDikS5
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| Cryptocurrencies | | Top stories for cryptocurrencies | Coinbase CEO Says Ordinary Russians Using Bitcoin as 'Lifeline'
Joanna Ossinger - Bloomberg
Coinbase Global Inc. isn't banning all Russian users for the moment, though would comply if the U.S. government decides to impose such a restriction, according to Chief Executive Officer Brian Armstrong. The cryptocurrency exchange will block transactions from IP addresses that might belong to sanctioned individuals or entities, as will any other regulated financial services business, Armstrong said in a Twitter thread. But it won't pre-emptively ban all Russians from using Coinbase, he said.
/jlne.ws/3HL21sG
Crypto is set to get a big boost from the ruble's collapse and the growing market share of stablecoins, JPMorgan says
Matthew Fox - Business Insider
The cryptocurrency market has more upside ahead as stablecoins see a surge in inflows over the past week, according to a Wednesday note from JPMorgan. The bank highlighted that stablecoins' market share of the overall cryptocurrency market has surged to a record high of about 10%. That means more upside ahead for the general crypto market as stablecoins "are typically used as the initial vehicle for fiat to crypto conversions," JPMorgan said.
/jlne.ws/3sFruiW
$7.5 Trillion AUM Company Charles Schwab Files for Crypto Economy ETF
Aaryamann Shrivastava - FX Empire
Charles Schwab, one of the biggest financial services companies, filed for a crypto economy ETF with the Securities and Exchange Commission (SEC). Approval of this exchange-traded fund (ETF) will enable Charles Schwab's clients to speculate on the index without holding any asset.
/jlne.ws/3vBPmWL
Charles Schwab moves closer to crypto with planned ETF focused on the sector
Mark Calvey - ACBU
Charles Schwab is planning to debut an exchange-traded fund that would invest in companies benefiting from the popularity of cryptocurrency, signaling the brokerage is looking for growth opportunities tied to digital currencies. The Schwab Crypto Economy ETF would not invest in cryptocurrency or other digital assets. Instead, it would invest in companies globally that may benefit from the use of bitcoin and other cryptocurrencies as well as other digital assets, according to a prospectus Schwab (NYSE: SCHW) filed with the Securities and Exchange Commission this week.
/jlne.ws/35Oqujs
Japan Looks to Plug Potential Crypto Holes in Russia Sanctions
Taiga Uranaka and Takashi Nakamichi - Bloomberg
Japan's financial regulator and the country's industry body for cryptocurrencies have begun discussions to assess how to effectively enforce sanctions against Russia, a regulatory official said. The Financial Services Agency and the Japan Virtual and Crypto Assets Exchange Association are examining ways that could effectively block the transfer of crypto assets involving people and entities on the nation's sanctions list, said the official, who asked not to be identified. The discussions do not currently involve any proposal to shut off access for all Russian clients, the official said.
/jlne.ws/3hJXdcp
SEC Begins the Investigation of "Fractional NFTs" Suspected To Be Illegal
Aaryamann Shrivastava - FX Empire
In a report from Bloomberg, it has been revealed that the Securities and Exchange Commission (SEC) is now investigating NFTs. There are two purposes as to why the regulatory body is doing this. The first is to determine what asset class NFTs fall in. Second to expose and eradicate any possible foul operations conducted through these NFTs.
/jlne.ws/3Cfzla0
Ukraine plans to issue NFT collection to fund armed forces; Kyiv moves further in embracing digital assets to raise money for the war
Cristina Criddle - FT
Ukraine plans to become the first developed country to issue its own collection of non-fungible tokens, as it looks to capitalise on a flood of crypto donations to back its war against Russia.
/jlne.ws/35plNx1
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| Politics | | An overview of politics as it relates to the financial markets | Putin's Financial Isolation by World's Powerful Is a Cautionary Tale for Xi Jinping; The crackdown on Russia may be a step toward a more polarized global economy. It's also a reminder that the U.S. pulls the financial strings
Shawn Donnan, Enda Curran, and Rich Miller - Bloomberg
It's the dominant geopolitical narrative of our era: The global economy is cleaving into two blocks as an ascending China and declining U.S. clash over trade, technology and the pandemic. After Vladimir Putin's invasion of Ukraine and the sanctions it provoked from the U.S. and allies, that divide appears sharper than ever ?— but the contest also looks more uneven. The economic isolation imposed on Russia has been a stark reminder of the persistence of American power.
/jlne.ws/35QXB6w
EU's Payments for Russian Gas Surge Amid War
Alessandro Speciale - Bloomberg
The European Union continues to buy natural gas from Russia even as it tries to cripple its economy with sanctions. With prices soaring, the daily value of those imports has jumped, reaching a record 689 million euros ($755 million) on March 2, according to calculations by the Brussels think tank Bruegel. Energy payments are exempt from sanctions and there's little appetite to include them for now, meaning gas will remain an economic lifeline for Russia as long as exports continue to flow.
/jlne.ws/3Kk9RuX
EU Braces for Extraordinary Measures if Russia Retaliates on Gas; European Union's energy chief Simson comments during interview; EU drafts new energy strategy to reduce dependence on Russia
Ewa Krukowska - Bloomberg
The European Union is bracing for potentially severe economic consequences should Russia cut off natural gas supplies in retaliation for sanctions. The 27-nation EU is prepared for various possibilities involving disrupted gas deliveries from its biggest supplier following the Russian invasion of Ukraine, the bloc's energy chief, Kadri Simson, told Bloomberg News on Thursday.
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Putin, His Rat and Six Ways the War in Ukraine Could End; What makes Russia's aggression so terrifying is that it's determined solely by the perceived self-interest of one man.
Andreas Kluth - Bloomberg
Nobody knows how Russia's war of aggression against Ukraine will end, but most scenarios range from bad to worse. To grasp them, start by considering what is indubitably the world's most notorious rat. That's the one Russian President Vladimir Putin claims he once — as a boy in what was then Leningrad — chased down a hallway. Cornered, the rat turned and attacked him.
/jlne.ws/3tBiFpU
Reducing Dependence on Russian Energy Is More Realistic Than You Think; It is risky, complicated and difficult — but so is allowing the Kremlin to continue to threaten Europe with violence and economic ruin.
Liam Denning - Bloomberg
There is nothing realistic about our global energy system apart from the fact that it exists. Modern society depends on long, complex systems that tap deposits of fuel, often located in unstable or inhospitable parts of the world, and carry it across deserts, mountains and high seas to eventually flow from spigots everywhere — even Antarctica. Power grids in much of the world reliably supply not only dense cities but also remote villages and homesteads that could never justify the cost of those long lines on their own. Increasingly, we use electricity sources that operate at the behest of the weather and time of day rather than our demands. We also — get this — split atoms in order to do stuff like charge up our phones.
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| Regulation & Enforcement | | For more regulatory, visit MarketsReformWiki, our website focused on current market reform efforts. | Last Chance for Phase Six IM Compliance
ISDA
If there's one lesson from the most recent round of initial margin (IM) requirements in September 2021, it's that compliance takes much longer than most people anticipate. With the next phase now less than six months away - one that will bring more entities into scope than ever before - it's critical this lesson is learned. The reality is there's very little time left to comply. Those firms that wait to start their preparations may well find they face difficulties trading from September 1...
/jlne.ws/3hFKw2C
Justice Department Investigates Chicken Companies' Information Sharing on Labor; Civil antitrust probe is examining whether sharing of employment information kept wages lower for plant workers
Patrick Thomas, Brent Kendall - WSJ
The Justice Department is investigating whether poultry companies have engaged in anticompetitive sharing about employment practices that held down plant workers' wages, according to people familiar with the matter. The civil probe by the Justice Department is examining actions at several poultry companies, the people said, and adds to the scrutiny that U.S. meat processors are facing from the government and their workers. The department has put at least some companies on legal notice that they must preserve documents, several of these people said.
/jlne.ws/3KkHGfJ
City National Rochdale to Pay More Than $30 Million for Undisclosed Conflicts of Interest
Harmed Investors to Receive Amounts Recovered
SEC
The Securities and Exchange Commission today announced that registered investment adviser City National Rochdale, LLC (CNR) has agreed to pay more than $30 million to settle charges that its undisclosed conflicts of interest defrauded current and prospective clients. The money CNR pays will be placed into an SEC Fair Fund for distribution to harmed investors.
/jlne.ws/3Cd0ieu
Remarks at the IAA Investment Adviser Compliance Conference
William A. Birdthistle - SEC
Good morning. Thank you, Karen, for your kind introduction and for inviting me to speak today. I am delighted to join you for my first public address as the Director of the Division of Investment Management. Let me begin, if I may, by making clear that my remarks today are my own and do not necessarily reflect the views of the Commission, the Commissioners, or the SEC staff.[1]
/jlne.ws/3Cbkbmt
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | There's Not Enough Extra Canadian Wheat to Fill Global Shortfall
Jen Skerritt - Bloomberg
One of the world's top wheat exporters won't be able to fill supply shortfalls caused by Russia's invasion of Ukraine after drought withered its own grain inventories. Dry conditions zapped as much as 40% of Western Canada's grain output, and finding additional supplies to export would be a "struggle," said Phil Speiss, commodity futures broker for RBC Dominion Securities in Winnipeg, Manitoba. Stockpiles of wheat in Canada dwindled to 15.6 million tons at the end of December, down 38% from a year earlier, government data show.
/jlne.ws/36W2L1r
Companies Exploit Inflation to Pad Their Bottom Lines; With margins at record highs and rising, it looks as if many businesses are raising prices more by choice than necessity.
Nir Kaissar - Bloomberg
A debate is intensifying about the role of corporate America in the recent wave of higher inflation. Companies are undoubtedly raising prices. The question is whether they are exploiting a surge in consumer demand or merely passing on their own higher costs. The available data strongly suggests that companies are raising prices to enhance profits.
/jlne.ws/3pBuP0y
Wall Street Is Already Pouncing on Russia's Cheap Corporate Debt; Banks, hedge funds bid on bonds from Gazprom, Russia Railways; Conventional distressed bets draw scrutiny under shadow of war
Laura Benitez, Sridhar Natarajan, and Katia Porzecanski - Bloomberg
As the U.S. and allies tighten sanctions on Russia and choke off investor demand for its assets, parts of Wall Street are jumping on the buying opportunity that it's creating. Goldman Sachs Group Inc. and JPMorgan Chase & Co. have been purchasing beaten-down company bonds tied to Russia in recent days, as hedge funds that specialize in buying cheap credit look to load up on the assets, according to people with knowledge of the private transactions.
/jlne.ws/3KeSHyR
Bond Traders Have Already Downgraded Russia to a Nation of Junk; More than 75% of Russian high-grade firms trade at junk levels; Rating companies are preparing to take sweeping action
Tasos Vossos - Bloomberg
Bond traders are delivering a swift, punishing verdict on the expected hit to Russian corporations from the Ukraine war. In short, it's turning the country into a nation of junk bonds. With Russia increasingly isolated by sanctions and widespread international condemnation, the prices of bonds issued by a broad spectrum of companies have tumbled as investors race to the exits.
/jlne.ws/3Kb7YRe
China investors drive frenzy for 'Sino-Russian trade' stocks; Investors bet Beijing will boost trade with Russia to soften blow from sanctions
Hudson Lockett - FT
Amateur investors in China are driving a rally in so-called "Sino-Russian trade concept stocks" as they bet that Beijing will boost trade with Russia to soften the blow of sanctions, pushing little-known logistics companies to valuations typically reserved for global tech groups.
/jlne.ws/3sQi7gJ
Companies Scrap IPOs Amid Russian Invasion of Ukraine; Businesses are choosing to postpone or cancel equity-raising transactions as markets seesaw
Nina Trentmann - WSJ
Companies are putting the brakes on planned initial public offerings and other equity capital markets transactions as investors pull back following Russia's invasion of Ukraine. Businesses in Europe withdrew equity-capital-markets deals totaling $634.31 million in February, up from $140.4 million in February 2021, according to Dealogic, a data provider. The lion's share of those transactions—about $608 million—were pulled last week, during which companies raised only $61.94 million in equity deals. Russia started invading its neighbor last Thursday, Feb. 24.
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | Are defence stocks now ESG? Surely supplying weapons to the invaded underdog in an unprovoked fight is a social good
Merryn Somerset Webb - FT
I have been invited to a seminar titled "How does ESG continue to evolve?" I don't need to go. I already know the answer. It will continue to evolve until one way or another it encompasses everything. Then, like everything that has tried to be all things to all men before, it will mean nothing.
/jlne.ws/3HJW8Mt
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Haidar Hedge Fund Soars 61% in Two Months for $800 Million Gain; Firm's estimated profit this year is more than $800 million; Haidar tells investors strength in bonds may be 'short-lived'
Nishant Kumar - Bloomberg
After record gains in January, Said Haidar's fund soared again in February. His Haidar Jupiter macro fund rose by 25.7% last month as Russia's invasion of Ukraine triggered large market swings, people familiar with the information said. The performance lifts gains for the year to almost 61%, leading to an estimated more than $800 million in profits after fees, according to a Bloomberg calculation. The fund managed $1.8 billion at the end of January.
/jlne.ws/3pyJrO7
Deutsche Bank's Mystery Middleman Sat In on Saudi Stake Plans; Daniel Wruck party to bank's 2019 search for anchor investor; German businessman's role is being investigated over DWS links
By William Patrick Geor Louch and Steven Arons - Bloomberg
Deutsche Bank AG didn't just rely on obscure German businessman Daniel Wruck for advice when making investments in small startups -- but apparently had him in the room when discussing the possibility of Saudi Arabia becoming an anchor investor during turbulent times.
/jlne.ws/3txJTxg
H2O fund carried outsized Russia bet ahead of Ukraine war; Scandal-hit French asset manager's flagship fund falls after carrying 48% exposure to Russian rouble
Robert Smith and Cynthia O'Murchu - FT
H2O Asset Management's flagship fund carried a bet on the Russian rouble that was equivalent to nearly half of its assets just weeks before Vladimir Putin launched his invasion of Ukraine. H2O, an investment firm that is under investigation by multiple financial regulators, took big bets on Russia that have battered its funds in the past week. The asset manager's EUR1.4bn Multibonds fund lost more than 15 per cent in a single day on Monday, as an unprecedented round of international sanctions threatened to cripple swaths of Russia's economy and sent its currency spiralling lower. The fund is also down 28 per cent from mid-February.
/jlne.ws/3Mpfvhc
Sova Capital enters administration, faces financial collapse amid Russia turmoil; Firm's dependence on transactions linked to Russia and Russian assets has meant it has been heavily impacted by sanctions imposed by institutions globally.
Annabel Smith - The Trade
Wholesale broker, Sova Capital, has entered special administration and is facing financial collapse due to sanctions placed on Russia in the last week. As a provider of trading and execution services, including facilitating access to Russian markets, the Sova Capital is heavily reliant on Russian business and assets, leaving it exposed to the various sanctions placed on the region by institutions globally in retaliation to its invasion of Ukraine.
/jlne.ws/3sJe9X7
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | 4 SMBC Nikko employees arrested on market manipulation charges; Securities company allegedly used timed 'buy' orders to inflate stock prices
Nikkei staff
Tokyo prosecutors arrested four employees of SMBC Nikko Securities on Friday, including at least one executive officer, on allegations of market manipulation, Nikkei learned from multiple sources. The Tokyo District Public Prosecutors Office raided SMBC Nikko's headquarters Friday. Prosecutors suspect that staff had placed "buy" orders for some stocks just before the market closed, when it was easier to manipulate prices.
/jlne.ws/3KhVgAe
Sanctioned billionaire Russian banker, Mikhail Fridman, was locked out of the private equity firm he co-founded and staff were told to ignore him, report says
Kate Duffy - Business Insider
Russian billionaire and banker, Mikhail Fridman, was locked out of the investment firm he co-founded after he was hit by European Union sanctions, the company announced on Wednesday. London-based LetterOne, of which under 50% is jointly owned by Fridman and Russian banker Petr Aven, said in a press release that both men had stepped down from the company's board and will no longer have any dealings with the group.
/jlne.ws/3HHOjH1
Russia's Gas Giant Shunned by European Traders -- and Its Landlord
Todd Gillespie and Jack Sidders - Bloomberg
Gazprom PJSC's energy-trading arm is being kicked out of its central London offices in the wake of Russia's invasion of Ukraine, piling more pressure on the company that's already being shunned by many U.K. trading partners and scrutinized by the government.
/jlne.ws/34e38nc
Russia will be impossible to invest in for a long while: Mobius
Brian Sozzi - Yahoo Finance
The Russian market is off limits until at least 2023 due to the country's invasion of Ukraine, says emerging markets investing legend Mark Mobius. "It will be impossible for a long time," the founding partner of Mobius Capital Partners said on Yahoo Finance Live. Mobius earned his stripes building out the emerging markets investing team at giant money manager Franklin Templeton.
/jlne.ws/3sEWdNb
War-Hit Crop Superpower Ukraine Faces Struggle to Even Sow
Megan Durisin, Irina Anghel and Volodymyr Verbyany - Bloomberg
As Ukraine's vast farmlands get caught up in war, there's a real risk that the top sunflower grower will struggle to plant seeds this year and that harvests of other crops already sown will suffer. From fields to processing plants to ports, Russia's invasion is paralyzing Ukrainian agriculture, an industry that produces tens of millions of tons of grains and oilseeds and ships crops across the globe. The sector is so core to Ukraine's identity that its flag depicts blue skies blanketing yellow farm fields.
/jlne.ws/3HBupNW
UAE Poised for Global Watchdog's 'Gray List' Over Dirty Money
Ben Bartenstein - Bloomberg
The United Arab Emirates is set for inclusion on a global watchdog's "gray list" after some of its members indicated that the Gulf nation hadn't made enough progress in tackling illicit financial flows, according to people familiar with the matter.
/jlne.ws/3Cd4ivC
You Can't Just Take a Russian Oligarch's London Townhouse; Reforms will help the government challenge their source of wealth. But will this lead to more assets being seized?
Chris Hughes - Bloomberg
It has taken Russia's invasion of Ukraine for the U.K. to pursue more concerted action against the flow of dirty money through the City of London and the capital's property market. Government reforms announced on Monday focused on lifting the veil of secrecy around corrupt real-estate ownership. These are just the first steps toward potentially seizing assets — but the steps are significant.
/jlne.ws/3HIk6aI
Belarus Sovereign Bonds Collapse Following U.S., EU Sanctions; The ex-Soviet nation has been hit with U.S. and EU sanctions as it continues to provide support for Russia's invasion of Ukraine
Alexander Gladstone - WSJ
The sovereign bonds backed by Belarus have collapsed over the past week due to the nation's entanglement with Russia, which is using Belarusian territory as a staging ground for its invasion of Ukraine. One of Belarus's bonds, a $600 million dollar-denominated note due 2027, changed hands at 14 cents on the dollar on Thursday, according to Tradeweb, down from around 87 cents on the dollar before the invasion.
/jlne.ws/3KgCUzL
Ukraine crisis throws Egypt's wheat purchases into doubt
Sarah El Safty - Reuters
Russia's invasion of Ukraine has left Egypt's wheat import prospects in turmoil, with two cargoes purchased by Egypt's state buyer stuck at Ukrainian ports, other deliveries at risk, and prices soaring, traders say.
/jlne.ws/36RMhay
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| Miscellaneous | | Stories that don't quite fit under the other sections | Former Fox News Director Jack Hanick Indicted for Helping Russia
Jose Pagliery - Daily Beast
As the United States increasingly goes after some of the Kremlin's business tentacles, the latest person arrested for violating U.S. sanctions against Russia is a former Fox News director who left to launch a Russian propaganda network.
/jlne.ws/35O0BAC
RT America ceases productions and lays off most of its staff
Oliver Darcy, CNN Business
RT America will cease production and lay off most of its staff, according to a memo from T&R Productions, the production company behind the Russian state-funded network, which CNN obtained. Misha Solodovnikov, the general manager of T&R Productions, told staff in the memo that it will be "ceasing production" at all of its locations "as a result of unforeseen business interruption events."
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