Biden Keeps Powell as Fed Chief, Elevates Brainard to Vice Chair; Options trading is poised to overtake the stock market

Nov 22, 2021

First Read


$54,406/$300,000 (18.1%)


Hits & Takes
John Lothian & JLN Staff

Eurex has released the latest version of its matching engine technology, T7 release 10.0. Learn more about self-match prevention (SMP) and matching cascades, staging of RFQs into Eurex EnLight, enhanced EnLight GUI, aggregation of off-book trade sides and preparation for Eurex’s next generation exchange traded derivatives (ETD) contracts that allow for more than one expiration per month on product level and a new contract logic based on DD/MM/YY. — Eurex

El Salvador wants to build a “bitcoin city” powered by a volcano. They should definitely do that and ask Tom Hanks to go into the volcano and connect it with their electricity grid. He has experience doing that kind of thing. — FT

The Wall Street Journal has a story by Nicole Nguyen titled “A Guide to the Best Chromebook Laptops, All Under $700; Use mostly cloud-based apps? Live in Google’s ecosystem? One of these five Chromebooks could be your next computer.” I remember when Chromebooks were supposed to be the low-cost replacement for laptops and cost under $200. I have bought a few and even splurged on some $300 versions. What the heck?

I know how much JLN readers like a good real estate story. This one does not involve Ken Griffin or any hedge fund manager, but rather the heiress to the Thomson Reuters publishing empire. Taylor Thomson, a member of one of Canada’s richest families, who sold her 1926-era house in Bel-Air, a tony Los Angeles area neighborhood. — WSJ

SEC Commissioner Hester Peirce has a speech titled “Worms and Dinosaurs: Statement on the Proposed Amendments to Modernize How Broker-Dealers Preserve Electronic Records.” Worms are not crawly, slimy things, but rather computer-speak for “write-only/read-many.” The 25-year-old rule is called a dinosaur, which makes me a double-dinosaur and then some.=

Jim Northey has been appointed to the advisory board of Esprow, an enterprise testing platform.

After a two year delay, Traders Fulcrum, a Chicago markets-based networking group, had their first meet-up, with Broadway Technologies as the sponsor. Basically Traders Fulcrum is a group of people who like to connect and drink beer and other things.

The great U.S. Constitution auction was won by none other than Citadel CEO Ken Griffin, who outbid a group of crypto investors. — WSJ

Hedgeweek has a story that Commodity Trading Advisors are having their best performance since 2014’s stellar year.

There were no new donations to the JLN MarketsWiki Education GoFundMe campaign yesterday.

Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL


The money is flowing in the cannabis retail sector. Ayr Wellness, a multi-state cannabis operator, today said it has entered into an agreement to acquire Dispensary 33 in Chicago. The company said the purchase is expected to consist of $55 million up front, including $12 million of cash, $3 million of sellers’ notes and $40 million of stock. Dispensary 33 operates two locations in Chicago, one on North Clark Street in the Andersonville neighborhood, and the other on West Randolph Street in the West Loop. ~SC


FIA Expo 2021: Sam Bankman-Fried Says FTX Won’t Follow the Crypto Crowd

Sam Bankman-Fried, the “richest person in crypto” according to Forbes Magazine, is the founder of FTX, a leading exchange for buying and selling crypto derivatives. John Lothian News spoke with him at FIA Expo 2021, where he talked about how the crypto space has grown and changed, crypto versus “traditional finance,” and the latest trends, including NFTs.

Watch the video »


Ex-Credit Suisse Bankers Say It Still Aids Hidden Accounts
David Voreacos – Bloomberg
Former Credit Suisse Group AG bankers have told criminal investigators that the bank is still helping U.S. clients hide accounts from the Internal Revenue Service, even after the firm paid $2.6 billion in penalties in 2014 and promised to stop the practice.

****** It is all a confidence game. Which of these cups are the accounts under? Nope, guess again.~JJL


Want a Supersize Bonus? Then Get Big on Reddit; In the meme stock era, already generous executive share awards can vest for unpredictable reasons.
Chris Bryant – Bloomberg
It’s hard to design an executive pay plan that satisfies everyone but there’s now a big wrinkle that corporate boards need to think carefully about: What if retail investors suddenly decide the company is the bee’s knees and the stock goes through the roof? Shares of luxury electric-vehicle maker Lucid Group Inc. have been on a tear lately, thanks partly to its popularity with day traders and on Reddit. After completing a blank-check merger in July, Lucid’s market capitalization has swelled to $91 billion. If these average share-price levels are sustained for six months, the targets underpinning British Chief Executive Officer Peter Rawlinson’s performance-based share plan will be reached, according to this filing. Those share awards, which were supposed to cover a five-year period, are currently valued at around $880 million. 1

******Forget stock market flash crashes, blame everything now on Reddit, except it is going in the other direction. UP!!! ~JJL


Crypto in the classroom: Lucy Kellaway on the kids’ new craze; In an age when trading apps have made investment cool, understanding money is more important than ever for school children
Lucy Kellaway – FT
It is registration time at a big comprehensive in Edgware, north London. Today, like every morning so far this term, the sixth form girls sit around chatting in twos and threes while most of the boys are in one large huddle. “I’m up over £100 in one day, bitches!” a boy in the centre crows. Others proclaim their gains in a conversation peppered with the words shiba inu, dogecoin and Elon Musk.

*****The rest of us have to learn about crypto in the “School of Hard Knocks.”~JJL


Friday’s Top Three
Our most-read story on Friday was The Wall Street Journal’s Google, CME Cloud Partnership Could Upend Tech Investments by Traders. Second was Bloomberg’s Ex-JPMorgan Trader Sells Jam, Inspires Italians Who Want to Quit. Third was the sad news from Trader’s Magazine, Sean Sullivan, OMS Sales Pioneer, Dies at 58.


MarketsWiki Stats


26,657 pages; 236,325 edits
MarketsWiki Statistics


Lead Stories

Biden Keeps Powell as Fed Chief, Elevates Brainard to Vice Chair
Craig Torres and Nancy Cook – Bloomberg
President Joe Biden selected Jerome Powell for a second four-year term as Federal Reserve chair while elevating Governor Lael Brainard to vice chair, keeping consistency at the U.S. central bank as the nation grapples with the fastest inflation in decades and the lingering effects of Covid-19.
The move, announced by the White House on Monday, rewards Powell for helping rescue the U.S. economy from the pandemic and tasks him with protecting that recovery from a surge in consumer prices. A Republican, Powell faces what will likely be a smooth confirmation in the Senate, where he was backed for his first term as chair in an 84-13 vote and whose members he subsequently worked hard to woo.

****The Wall Street Journal’s story on the Fed’s Powell is here.

Options trading is poised to overtake the stock market
John Detrixhe – Quartz
Fueled by a cocktail of slick trading apps and social-media hype, retail trading has soared since competition between brokerages squashed commissions in 2019. The notional value is the trading volume multiplied by the spot price. Make no mistake—institutional investors are still heavy hitters in options contracts, which give traders the right, but not the obligation, to buy or sell an asset at a certain price.

A Global Carbon Price Is a Mirage; Trading in greenhouse gas emission credits is likely to boom but unlikely to lead to a single global market
Rochelle Toplensky – WSJ
Carbon credits have a bright future. That doesn’t mean economists’ dream of a global carbon price is about to be realized. One of the most tangible outcomes of this month’s COP26 meeting in Glasgow for business was an agreement on carbon accounting and trading rules. This should help to tame the current Wild West of trading in emissions credits, which leaves the door open to green-washing.

Stock Options Are the New Day-Trading Craze. What It Means for the Market.
Andrew Bary – Barron’s
Hot stocks like Tesla and Apple have become even hotter as stock option speculators sweep back into the market. Many are retail investors holding their positions for less than a day. This new day-trading frenzy in options is helping lift individual stocks and bolstering the revenue of online brokers like Robinhood . “Small retail traders are back buying lottery tickets on the rally again,” says Jason Goepfert, the founder of Sundial Capital Research, whose SentimenTrader newsletter tracks measures of speculative trading.

UBS, Deutsche Bank Set Course for Next Era With New Chairmen
Ambereen Choudhury and Steven Arons – Bloomberg
UBS nominates Kelleher while Deutsche Bank proposes Wynaendts; Both lenders are due to provide strategy updates next year
Two of Europe’s banking giants picked the leaders who’ll help chart their next era as they named successors for the chairmen who steered them through a decade of restructuring.

City regulator appeals for Bitcoin expertise as terrorists exploit cryptocurrencies
Simon Foy – The Telegraph
The City regulator is calling in Bitcoin experts to train its staff over fears that money launderers and terrorists using cryptocurrencies are steps ahead in the fight against financial crime. The Financial Conduct Authority (FCA) is spending £500,000 on consultants to provide access to a platform that analyses blockchain data and to coach officials about how they can spot criminals transferring money via decentralised financial networks.

Maverick 70-Year-Old CEO Is Determined to Shake Up Japanese Finance
Yoshitaka Kitao, the founder of Japan’s largest online brokerage, says his country lags behind the U.S. and Europe
Akashi Nakamichi, Takako Taniguchi – Bloomberg
Yoshitaka Kitao, who turns 71 in January, embraces the lessons of the ancient past in his quest to build the future. A lover of Chinese classics such as Confucius’ Analects, Kitao is himself the author of over 40 books. In his youth, when elite students typically sought jobs at Japan’s top banks, he opted to pursue a riskier career at Nomura Securities Co. [now Nomura Holdings Inc.], where he impressed leaders with his hard work and business success. He also wowed a client, SoftBank Group founder Masayoshi Son, who hired him to be the technology investment group’s chief financial officer. In 1999, Kitao founded SBI, for SoftBank Investment Corp., to focus on internet-­enabled financial services. (The meaning of the initials changed to mean Strategic Business Innovator in 2005, when the company began to separate from SoftBank.) SBI Holdings Inc. now has more client accounts than do its competitors, including Daiwa Securities Group and Nomura. Kitao has also made a push into cryptocurrency-­related ­companies—SBI is the biggest institutional shareholder of Ripple Labs Inc. and R3 Ltd.—and banking, including a two-year pursuit of a controlling stake in Shinsei Bank. Kitao spoke with Bloomberg Markets in early ­November. The interview, which was translated from Japanese, has been condensed and edited for clarity.

‘Too Risky’: $2.4 Trillion Pension Sector Is Wary of Crypto
Matthew Burgess and Georgina McKay – Bloomberg
Digital assets struggle to lure Australian retirement funds; Volatility and governance risks are among the challenges cited
Cryptocurrencies are getting a cool reception in Australia’s A$3.3 trillion ($2.4 trillion) pension fund industry, underlining the challenge digital assets face to win significant investment from retirement savings. Long-term funds have to watch how the crypto sector develops, but extreme price swings make virtual currencies “too risky to be considered for institutional portfolios,” Ross Barry, who oversees A$27 billion as chief investment officer of superannuation fund Spirit Super, said in an interview.

Brussels to curb banks’ use of ‘cross-border’ permissions to access EU; Measure in new capital regulations would tighten patchwork of national arrangements and affect banks in London
Laura Noonan, Sam Fleming and Martin Arnold – FT
Brussels plans to crack down on a patchwork of national arrangements that allow banks outside the EU to sell services into the bloc, dealing a blow to lenders in London that rely on the arrangements to cushion the impact of Brexit.

Key US commission heralds coming capital wars; Finance may be the next frontier for decoupling from China, with new limits on business between the two countries
Rana Foroohar – FT
If there’s one thing both Republicans and Democrats can agree on, it’s that China is America’s biggest long-term strategic threat. And yet US financial firms couldn’t be more bullish on the Middle Kingdom. Banks like Citigroup, Goldman Sachs and JPMorgan Chase are expanding their business there, as are asset managers like BlackRock. But what will happen when Wall Street’s aspirations for riches in China meet the political realities of Main Street America? It’s a question that has been put front and centre by the annual US-China Economic and Security Review Commission report, issued to Congress last week, which recommended a host of new limits on business between the two countries, not just on goods and labour, but also capital flows.

The Spac machine sputters back to life after dramatic meltdown; The market for blank-cheque companies is showing new signs of life but critics say insiders are still the big winners
Ortenca Aliaj and Miles Kruppa – FT
Before Marc Bell went into business launching satellites, he enjoyed a lucrative career at the outer reaches of professional finance. Over 30 years, he has bought stakes in pornographic magazines and pizza parlours, produced Tony Award-winning musicals and earned enough money that he once lived in a Florida mansion whose lavish decor included a full-scale replica of the bridge of the Starship Enterprise.

JPMorgan’s Jamie Dimon and Tesla’s Elon Musk Feud Behind the Scenes; Bank’s lawsuit against electric-vehicle maker brings the CEOs’ long-simmering tensions into open
David Benoit – WSJ
Elon Musk and Jamie Dimon don’t get along. Mr. Musk has spurned Mr. Dimon’s JPMorgan JPM -1.31% Chase & Co. for years, turning to other banks while expanding Tesla Inc. TSLA 3.71% and his broader empire. Conversations over the years between the two companies have often upset one side or the other, according to people familiar with the matter.

The Crypto Industry’s Solution for Regulation: We’ll Handle It; Big exchanges and investors say traditional agencies don’t have the tools or expertise to oversee the sector.
Joe Light – Bloomberg
The cryptocurrency industry suddenly found itself in the crosshairs of a host of U.S. state and federal regulators this fall, facing millions of dollars of fines, threats of lawsuits, and warnings of new rules to come. Crypto executives say the abrupt—and sometimes overlapping—spate of enforcement threatens to chill innovation, especially in areas where it’s not clear which laws apply. Their solution? Let the industry help regulate itself.

The $5 Billion Hoard of Metal the World Wants But Can’t Have
Mark Burton and Nguyen Dieu Tu Uyen – Bloomberg
On an industrial park about an hour’s drive toward the South China Sea coast from Ho Chi Minh City sit giant mounds of raw metal shrouded in black tarpaulin. Stretching a kilometer in length, the much-coveted hoard could be worth about $5 billion at current prices. In the esoteric world of aluminum, those in the know say the stockpile in Vietnam is the biggest they have ever ` — and that’s in an industry that spends a lot of time building stockpiles while analysts spend a lot of time trying to locate them. But as far as the increasingly under-supplied market is concerned, it’s one that may never be seen again.

Why European banks have failed to crack the US; Santander is bucking the trend — for now
Patrick Jenkins – FT
Jamie Dimon was in London last week. Among other priorities, JPMorgan’s chief executive was giving a shot in the arm to the US banking giant’s latest expansion drive — the rollout of its retail banking brand in the UK, via an online-only initiative.

Financial Market Evolution from Herstatt Bank to Crypto
Nahiomy Alvarez – Chicago Federal Reserve Bank
Decades of events, decisions, and occasional defaults have shaped how global financial markets operate today. This history is rich, and often best told by those who have experienced it firsthand. For this episode, LaSalle Street welcomes Robert Steigerwald, senior policy advisor in the Financial Markets Group of the Federal Reserve Bank of Chicago, to discuss more than five decades of market evolution—from the bankruptcy of Herstatt Bank in the 1970s to the emergence of digital money. Moderating the conversation is Nahiomy Alvarez, senior financial markets analyst at the Chicago Fed.


Vaccine Holdouts Face $4,000 Fine in Austria’s Virus Crackdown
Marton Eder – Bloomberg
Government plans to introduce compulsory shots in February
Country has gone back into lockdown amid surge in cases
Austrians who refuse to get a coronavirus vaccine will face fines of up to 3,600 euros ($4,000) once mandatory inoculations kick in next year. The penalties are part of a dramatic move by the government to boost vaccination levels as it grapples with a surge in cases that’s forced the country back into lockdown.

European protests against Covid curbs spread to Brussels; Demonstrations turn violent as governments across EU prepare stricter measures to contain pandemic
Javier Espinoza and Valentina Pop and Sam Jones – FT
Europe’s protests against Covid-19 curbs spread to Brussels on Sunday when tens of thousands of demonstrators marched through the city centre in protests that later turned violent.

Austria’s vaccine order is an admission of failure; Europe resorts to ever tougher measures to contain Covid-19
The editorial board – FT
A fourth wave of Covid-19 infections is barrelling across continental Europe, forcing governments to take drastic measures to contain the virus’s spread and stop hospitals from being overwhelmed. Germany, like some of its neighbours, is restricting access to public places for the unvaccinated. On Friday, the Austrian government took the most severe steps of all: it ordered a three-week national lockdown and said that from February vaccination would become compulsory, a first for any advanced economy.

AstraZeneca’s vaccine hopes lie overseas as it runs out of road in UK; British drugmaker’s exclusion from booster campaign is latest setback
Hannah Kuchler, Sarah Neville, Oliver Barnes and Donato Paolo Mancini – FT
When Pascal Soriot unveiled AstraZeneca’s new vaccine strategy he could scarcely hide his exasperation. After thrusting his company into the frontline of the battle against Covid by developing a low-cost jab, the chief executive appeared frustrated he was not receiving the plaudits he might have expected.

CDC backs Covid-19 booster shots for all adults in US; Regulators pave the way for supplemental doses amid worries about waning immunity and rising cases
Jamie Smyth and Caitlin Gilbert – FT
The US Centers for Disease Control and Prevention has endorsed Covid-19 booster shots for all adults over 18 years of age, amid concerns about a surge in cases ahead of the winter. It follows a unanimous vote at the vaccines committee of the health agency on Friday and paves the way for a nationwide rollout of the booster programme after months of wrangling over the policy.

Austria’s Return to Covid-19 Lockdown Is Met With Anger, Resignation; Tighter restrictions and coming vaccine mandate are helping to boost inoculations in Austria
Bojan Pancevski – WSJ
Austria on Monday became the first Western country to put its economy under partial lockdown, the toughest in an array of restrictions that are spreading across Europe, sometimes meeting violent protests, as governments seek to fend off a steep rise in Covid-19 cases and hospitalizations despite widespread vaccinations.

COVID-19 situation is ‘highly dramatic,’ and worse than anything Germany has experienced so far, says Angela Merkel: reports
Mark DeCambre – MarketWatch
German Chancellor Angela Merkel is painting a darkening picture for Europe, as a new surge of COVID-19 grips the eurozone’s largest economy and risks triggering a fresh round of mobility restrictions. Merkel has described the scene tied to COVID infections as “worse than anything Germany has experienced so far,” according to a report from Bloomberg News, citing people familiar with comments she made to officials in her Christian Democratic Union Party recently.

As Thanksgiving Approaches, U.S. Virus Cases Tick Upward Once More; Cases are rising again in parts of the country, but more people are traveling, and health officials have largely stopped telling people to skip celebrations.
Mitch Smith – NY Times
A month ago, new coronavirus cases in the United States were ticking steadily downward and the worst of a miserable summer surge fueled by the Delta variant appeared to be over. But as Americans travel this week to meet far-flung relatives for Thanksgiving dinner, new virus cases are rising once more, especially in the Upper Midwest and Northeast.

Exchanges, OTC and Clearing

Introducing T7 Release 10.0: Eurex next consequent step to even better functionality; In keeping with our ongoing efforts to provide you with the best possible service, the latest T7 release comes with a whole lot of new features, changes, and enhancements.
“Our T7 trading architecture is already equipped with cutting-edge technology. To maintain this high standard, regular improvements and further extensions of functionality are key. Our latest release once again offers our customers an extended range of services to fulfill their needs”, says Jonas Ullmann, Chief Operating Officer and Member of the Executive Board of Eurex.

Here are the stock market’s trading hours for Thanksgiving and Black Friday
Mark DeCambre – Bloomberg
U.S. financial markets are closed Thursday for Thanksgiving, and will close early on Black Friday. Black Friday, Nov. 26, is the official start to the holiday shopping season, with many retailers — including Macy’s Inc. (M) and Walmart (WMT) — offering bargains for those looking for holiday gifts. The Intercontinental Exchange Inc. (ICE) -owned New York Stock Exchange and the Nasdaq (NDAQ) will close at 1 p.m. Eastern on Friday, while the Securities Industry and Financial Markets Association recommends a 2 p.m. Eastern close for Treasury markets, such as those that trade the 10-year Treasury (BX:TMUBMUSD10Y) However, there’s no early closure for the markets on Wednesday, the day before Thanksgiving in the U.S.

Saudi Stock Exchange Seeks to Raise Up to $1 Billion in IPO
Reema Alothman and Farah Elbahrawy – Bloomberg
Saudi Arabia is keeping the home fires burning for regional public offerings, readying what could be the biggest sale of shares by a stock-exchange operator since Euronext NV.

Swiss exchange operator claims world first with tokenised bond issuance on its new Digital Exchange; The bond was issued in two parts – tokenised and traditional – to help banks and investors familiarise themselves with DLT.
Anita Hawser – The Trade
SIX’s Digital Exchange has issued the world’s first tokenised bond in a fully regulated environment using distributed ledger technology (DLT), which settles trades instantly, freeing up liquidity. The bond, which was joint lead managed by Credit Suisse, UBS, and Zürcher Kantonalbank, was issued in two parts. Part A, the digital or tokenised part of the bond, accounted for 100 million Swiss francs of the total issuance volume. The remaining CHF 50 million, was allocated to the traditional part of the bond (Part B).

MarketAxess expands liquidity offering to deal with rising trading demand; According to the fixed income platform provider, the number of active participants trading emerging markets debt reached more than 1,300 firms last quarter.
Annabel Smith – The Trade
With more institutions now trading emerging and frontier markets debt on its platform, MarketAxess has added three new regions — Hong Kong, Egypt and Serbia – to its liquidity offering. The fixed income platform provider cited client demand, the hunt for yield and searching for new opportunities across the emerging and frontier markets as the primary reasons that had led them to these regions.

Alfonsino S.p.A. lists on Euronext Growth Milan
31st listing of 2021 on Euronext Growth Milan; Alfonsino S.p.A. brings the total number of companies listed on Euronext Growth Milan to 162; Total placement volume of the offering equal to EUR4 million
Borsa Italiana, part of the Euronext Group, today congratulates Alfonsino S.p.A. on its listing on Euronext Growth Milan.

Allterco JSCo new in the Frankfurt Stock Exchange’s Prime Standard
Deutsche Börse Group
Allterco JSCo (ISIN: BG1100003166) is listed in the Prime Standard of the Frankfurt Stock Exchange as of today. The company is already listed on the Bulgarian Stock Exchange and its shares are now available in the Open Market through dual listing.

Restated Revenue Segment Reporting Reflecting New Structure

Home BancShares Completes Listing Transfer to the New York Stock Exchange
Intercontinental Exchange, Inc.
The New York Stock Exchange, part of Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology and market infrastructure, announced that Home BancShares Inc. (NYSE: HOMB) has completed its listing transfer and will begin trading today as an NYSE-listed company.

ICE Benchmark Administration Provides Update Regarding LIBOR® Cessation and “Synthetic” LIBOR
Intercontinental Exchange, Inc.
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, today announced that ICE Benchmark Administration Limited (IBA), the authorized and regulated administrator of LIBOR®, has provided an update regarding LIBOR cessation and “synthetic” LIBOR following previous announcements from the UK Financial Conduct Authority (FCA).

Annual Reports; JPX Report 2021
We are glad to inform you of the publication of the JPX Report 2021. Prepared as part of our efforts toward integrated reporting, the report offers stakeholders and the general public a deeper insight into our corporate philosophy, social role, and our initiatives toward value creation.

— January 2022 Brazilian Real/US Dollar Futures and Options Contracts Terminate Trading Thursday, December 30, 2021 at 9:15 AM CT — CME
— Notice of Disciplinary Action; NON-MEMBER: GFI SECURITIES LLC, COMEX RULES: RULE 432. GENERAL OFFENSES (IN PART) It shall be an offense: W. for any party to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchange. — CME
— Notice of Disciplinary Action; NON-MEMBER: Tsung Zone Lee, COMEX RULE: RULE 575.A. (DISRUPTIVE PRACTICES PROHIBITED), All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes. A. No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution. — CME
— Notice of Disciplinary Action; NON-MEMBER: Chun Ming Chang, NYMEX RULES: Rule 432.G. General Offenses (In Part) It shall be an offense to prearrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts. Rule 576. Identification of Globex Terminal Operators (In Part). Each individual must use a unique user ID to access Globex. In no event may a person enter an order or permit the entry of an order by an individual using a user ID other than the individual’s own unique user ID. — CME
— Notice of Disciplinary Action; NON-MEMBER: mHsing Han Liu, NYMEX RULES: Rule 432.G. General Offenses (In Part), It shall be an offense to prearrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts. Rule 534. Wash Trades Prohibited No person shall place or accept buy and sell orders in the same product and expiration month, and, for a put or call option, the same strike price, where the person knows or reasonably should know that the purpose of the orders is to avoid taking a bona fide market position exposed to market risk (transactions commonly known or referred to as wash sales). Buy and sell orders for different accounts with common beneficial ownership that are entered with the intent to negate market risk or price competition shall also be deemed to violate the prohibition on wash trades. Additionally, no person shall knowingly execute or accommodate the execution of such orders by direct or indirect means. — CME
— Notice of Disciplinary Action; NON-MEMBER: Bold Trading Pty Ltd., NYMEX RULE VIOLATION: n562. POSITION LIMIT VIOLATIONS (in part), Any positions in excess of those permitted under the rules of the Exchange shall be deemed position limit violations. — CME
— Notice of Disciplinary Action; MEMBER: OIL BROKERAGE, LTD., EXCHANGE RULE: RULE 526. BLOCK TRADES, The Exchange shall designate the products in which block trades shall be permitted and determine the minimum quantity thresholds for such transactions. The following shall govern block trades: F. Unless otherwise agreed to by the principal counterparties to the block trade, the seller, or, in the case of a brokered transaction, the broker handling the block trade, must ensure that each block trade is reported to the Exchange within the time period and in the manner specified by the Exchange. The report must include the contract, contract month, price, quantity of the transaction, the respective clearing members, the time of execution, and, for options, strike price, put or call and expiration month. The Exchange shall promptly publish such information separately from the reports of transactions in the regular market. — CME
— CME Direct Software Enhancement Coming December 5 — CME


Paytm Founder Compares Himself to Musk After Historic IPO Flop
Saritha Rai – Bloomberg
The founder and chief executive officer of One 97 Communications Ltd. compared his company to Tesla Inc. — and by extension drew parallels between himself and Elon Musk — after the Indian payments startup suffered a brutal first-day plunge following its initial public offering.

India’s Paytm Tumbles Another 13% After First-Day IPO Flop
Saritha Rai and Nupur Acharya – Bloomberg
The stock fell about 13% on Monday after a 27% plunge in its debut Thursday, cutting its market value to about $12 billion. The drop has hit individual investors and global institutions such as BlackRock Inc. and the Canada Pension Plan Investment Board that had scooped up shares.

Paytm IPO Investors Lose $900 Million in Two Days as India’s Biggest Listing Flops; Owner of mobile-payments company went public last week, selling equivalent of $2.46 billion worth of shares
Quentin Webb and Shefali Anand – WSJ
Shares in the owner of Indian financial technology giant Paytm tumbled for a second day, with the declines inflicting about $900 million in losses on investors that bought into the much-hyped initial public offering this month. The stock of Paytm’s parent One97 Communications Ltd. 543396 -13.03% closed Monday nearly 37% below its IPO price after suffering through more heavy selling pressure.

RBC Recommends SPDR Communication Trust as ‘Secret’ Tech Hedge
Joanna Ossinger – Bloomberg
RBC Capital Markets recommends bets using a State Street Global Advisors’ exchange-traded fund as a cheaper way of hedging for declines in U.S. technology stocks.

Satellite Industry Grows as Investors Bet Billions on Space-Derived Data; Remote-sensing companies project robust growth; some executives anticipate consolidation in sector
Micah Maidenberg – WSJ
Dozens of companies are dotting the skies with satellites, part of a growing bet that buyers on Earth will pay billions of dollars for a more granular view of the planet. Not all of the companies are likely to make it, according to industry observers. Investors are pouring money into remote-sensing companies, with BlackSky Technology Inc. BKSY -0.99% and Spire Global Inc. SPIR -3.04% merging with so-called special-purpose acquisition companies this year. Competitors including Planet Labs Inc., Satellogic and Terran Orbital Corp. also have struck deals to go public by combining with SPACs, while other companies have raised money from venture-capital funds.

Payments Companies Aren’t Getting Enough Credit; Stocks of payments companies have been under pressure, while lenders have jumped. Investors might not be seeing the bigger picture.
Telis Demos – WSJ
Consumers use cards for two major purposes: Spending and borrowing. Investors right now seem more worried about the future for spending. But they might have it a bit backward. Shares of companies that facilitate the spending side of cards—networks like Visa V -1.21% and Mastercard, MA -2.44% merchant acquirers like Fiserv FISV -1.18% and FIS and digital payments companies like PayPal PYPL -3.44% and Square—have widely fallen or underperformed the broader S&P 500 financial sector. PayPal has fallen 16% since lowering its expected full-year revenue growth earlier this month. Square is down 9% since it reported slowing revenue growth for its Cash App. Meanwhile, shares of major credit-card lenders, like Capital One Financial COF -1.09% and Synchrony Financial, SYF -0.97% have widely outperformed financials or seen solid gains.

FINBOURNE joins AFM’s Innovation Hub to create an EU Consolidated Tape; Company looks to solve underlying data issues and form a transparent, technology-led CTP solution that provides transparency and visibility of market liquidity to capital markets.
Wesley Bray – The Trade
As part of the Capital Markets Union plan, FINBOURNE Technology has partnered with the Dutch Authority for the Financial Markets’ (AFM) regulatory sandbox, as it looks to drive the creation of a Consolidated Tape Provider (CTP). The CTP relates to the European Union’s MiFID and MiFIR frameworks.

State Street Collateral+ Delivers New Analytics and Optimization Capabilities in Partnership with Cassini Systems
Press Release via Citizen Tribune
State Street Corporation (NYSE:STT) announced today it has added market leading pre-and post-trade optimization and margin analytics capabilities to its Collateral+ service. In partnership with Cassini Systems, the leading provider of pre- and post-trade margin and collateral analytics for derivatives market participants, Collateral+ now offers an integrated, modular approach to optimization, which addresses collateral efficiency from multiple angles.


German firm acquires ex-Mossad chief’s cybersecurity startup for $700m
Tamir Pardo’s XM Cyber purchased by Germany’s Schwarz Group, Europe’s largest retailer with plans to build its own cloud computing platform
Rocky Ben-David – The Times of Israel
Israeli cybersecurity company XM Cyber, co-founded by former Mossad chief Tamir Pardo, is being acquired by Germany’s Schwarz Group, a multinational retail operation with some $140 billion in reported annual revenue.
The terms of the acquisition were not disclosed but Hebrew-language media estimated the sale at about $700 million. XM Cyber will continue to operate independently and offer its products under its current brand and support structure, according to the announcement Monday.

Why you and I will pay the price for the next big cybersecurity crisis
John Naughton – Opinion – The Guardian
As a former top civil servant has pointed out, private firms seem happy to let governments pick up the pieces when hackers strike
Ciaran Martin is what is known in Whitehall as “a safe pair of hands”. In the 23 years he spent working there he held a number of senior roles within the Cabinet Office, which included negotiating the basis of the Scottish referendum with the Scottish government and being director of security and intelligence. He was also responsible for (and I am not making this up) “spearheading the equalising of the royal succession laws between males and females in the line”. Before that, he had been private secretary to the permanent secretary at the Treasury and then principal private secretary to the cabinet secretary. When the government set up the National Cyber Security Centre (NCSC) in 2016 he was appointed its first director. He now basks as a professor in the luxurious environs of the Blavatnik School of Government at Oxford University.

Virginia Tech cybersecurity expert on how to avoid online shopping scams this holiday season
Kristi King –
The holiday shopping season is now well underway, and watchdogs want to help people avoid, detect and report online shopping scams.
“Reports about online shopping issues aren’t new for the Federal Trade Commission, but the supply chain issues related to the pandemic have made matters much, much worse,” Christina Miranda with the Division of Consumer Business Education at the Federal Trade Commission (FTC) said.
“If you’re spending some of your hard earned money online, just make sure you know where it’s going,” she said.


If bitcoin is ‘digital gold,’ it should be taxed like gold
Chad Bayse – The Hill
As the U.S. government seeks ways to fund its swelling debt and deficits and seemingly ever increasing spending, a puzzling anomaly exists. Investors have flocked to bitcoin and other cryptocurrencies yet receive a preferred tax rate on long-term profits as compared to gold bullion. This makes no sense if, as its advocates like to say, bitcoin is “digital gold.”

Mexican Crypto Exchange Bitso Incorporates Circle Solutions for Cross-Border Payments Initiative
Andrés Engler – Coindesk
Bitso is integrating Circle’s payment system to make it easier and more secure for Mexican residents and businesses to execute cross-border payments to and from the U.S., the company said Thursday.

Financial Market Evolution from Herstatt Bank to Crypto
Nahiomy Alvarez – Chicago Federal Reserve Bank
Decades of events, decisions, and occasional defaults have shaped how global financial markets operate today. This history is rich, and often best told by those who have experienced it firsthand. For this episode, LaSalle Street welcomes Robert Steigerwald, senior policy advisor in the Financial Markets Group of the Federal Reserve Bank of Chicago, to discuss more than five decades of market evolution—from the bankruptcy of Herstatt Bank in the 1970s to the emergence of digital money. Moderating the conversation is Nahiomy Alvarez, senior financial markets analyst at the Chicago Fed.

Coin Worth $0.00004893 Highlights Crypto’s Wild Decimal Frontier
Michael P. Regan – Bloomberg
Shiba decimalization ‘best marketing thing you could ever do’; 18 decimals for Ethereum tokens is ‘not ideal,’ expert says
When it comes to decimal places, cryptocurrencies are treading into bizarre territory that other markets have never dared — or bothered, really — to go before. Shiba Inu cost just $0.00004893 or so each on Friday afternoon, while Dogecoin fetched less than 1 cent early this year. A Bitcoin can be sliced into a satoshi, which is this much of the coin: 0.00000001. Then there’s the weirdest of all: the wei. That’s one quintillionth of an Ether, or 0.000000000000000001.

‘Cash Is Disappearing,’ BOE Official Says Building Case for CBDC
Reed Landberg – Bloomberg
Cash is disappearing from the U.K. economy, a Bank of England official said in building the case for a new form of digital currency backed by the government.

El Salvador Plans Tokenized Bitcoin Bonds and Tax-Free ‘Bitcoin City’
Michael D McDonald – Bloomberg
President Nayib Bukele plans to build “Bitcoin City”; Bukele says Bitcoin City will have no income or property taxes
El Salvador intends to issue the world’s first sovereign Bitcoin bonds and build Bitcoin City, which will be free of income, property and capital gains taxes, President Nayib Bukele announced in the beach town of Mizata to a crowd of cheering Bitcoin enthusiasts.

El Salvador plans ‘bitcoin city’ powered by volcano; President of central American nation says project will be financed by $1bn of bonds
Christine Murray – FT
El Salvador’s president has said the Central American country plans to build a volcano-powered “bitcoin city” financed partly by an issue of $1bn in sovereign bonds backed by the cryptocurrency. President Nayib Bukele said the city would have no property, income or capital gains taxes. Its infrastructure and other costs will be funded by a sales tax and money raised by the bond issues.

China’s exiled crypto machines fuel global mining boom; From Venezuela to Russia, data collected by FT map where machinery ended up
Martha Muir – FT
China’s ban on cryptocurrency mining in May triggered an exodus of miners and a global race to relocate millions of the clunky, power intensive machines they use to solve complex puzzles and earn bitcoin.

MiamiCoin, a cu without sovereignty; City-states have always had their own money, but they have also controlled it
Brendan Greeley – FT
Earlier this month Francis Suarez, mayor of Miami, announced that he would take his next pay cheque in bitcoin. The new mayor of New York answered that he would take his next three. This kind of good-natured puffery is standard for American mayors. And it’s not a terrible idea to denominate your salary in an appreciating asset, or at least convert it as soon as you can. When I’m done writing, for example, I plan to ask my editor to pay me in real estate.

Rise of from university blog to home of the LA Lakers; Little-known exchange paid $700m for stadium naming rights as it rides surge in bitcoin
Eva Szalay, Sara Germano and Christopher Grimes – FT started life as the blog of a University of Pennsylvania professor, Matt Blaze, who sold the name in 2018 for an undisclosed sum to a little-known start-up dabbling in cryptocurrency and credit cards called Monaco.


Congress must clarify how the infrastructure bill will impact cryptocurrency
Christopher Morton – Techcrunch
The $1 trillion U.S. infrastructure bill, signed into law by President Joe Biden last week, contains provisions that would tax cryptocurrency trades and yield the U.S. government some $2.8 billion a year.
That is, frankly, not a lot of money. The issue is that the crypto tax element of the law is not clearly written, and the government risks squashing a burgeoning part of the economy. The infrastructure bill says “a brokerage” needs to keep track of these things. But you can enter into a smart contract without a brokerage, so who is responsible for reporting in that case? Would a miner be considered a brokerage?

When Energy Pipelines Are Political, Everyone Suffers; Europe is becoming ever more hostage to the politicization of its pipelines. That doesn’t bode well for a looming winter energy crisis.
Julian Lee – Bloomberg
The placement of energy pipelines has always been shaped by political considerations, often at the expense of commercial ones. But the operation of existing lines is increasingly becoming politicized, too. And that’s going to hurt everyone.

Europe’s war over sovereignty is just beginning; The transformation of Michel Barnier into a nationalist is a warning sign for the EU
Gideon Rachman – FT
Whatever happened to Michel Barnier? As the head of the EU negotiating team on Brexit, the patrician Frenchman became famous for his insistence that the EU must never deviate from its core principles — including the supremacy of European law and the free movement of people.


SEC Appoints Haoxiang Zhu Director of Division of Trading and Markets; David Saltiel Appointed as a Deputy Director of the Division
The Securities and Exchange Commission today announced the appointment of Haoxiang Zhu, a professor of finance at the Massachusetts Institute of Technology, as Director of the agency’s Division of Trading and Markets, effective Dec. 10, 2021. David Saltiel, who has served as Acting Director of the Division for the past several months, has been appointed as one of the Division’s Deputy Directors and also will continue to lead the Office of Analytics and Research.

U.S. SEC taps MIT finance professor Haoxiang Zhu to lead unit overseeing trading and markets
The U.S. Securities and Exchange Commission (SEC) named Haoxiang Zhu as head of the agency’s Division of Trading and Markets, where he is expected to help the regulator lead major new policies around equity market structure, among other priorities, the agency said on Friday.

The SEC’s Division of Trading and Markets appoints new directors; Professor of finance at MIT has been appointed director, while the SEC’s acting director has been promoted to deputy director.
Wesley Bray – The Trade
The US Securities and Exchange Commission (SEC) has appointed a new director of the agency’s Division of Trading and Markets, as well as a new deputy director for the division, which regulates the major securities market participants, including broker-dealers, stock exchanges, and clearing agencies Gordon Y. Billard professor of management and Finance, and associate professor of finance at the MIT Sloan School of Management, Haoxiang Zhu, will be the agency’s new director effective from 10 December.

Australian regulator says crypto investors ‘on their own’ for now
Paulina Duran – Reuters
Australia’s corporate watchdog said on Monday it was working with lawmakers to develop rules for digital currencies but warned many crypto assets remained unregulated for now, leaving investors in such products “on their own”.

BOE’s Cunliffe Urges Self-Insurance for Money Market Funds
Reed Landberg – Bloomberg
Bank of England Deputy Governor Jon Cunliffe said money market funds need some sort of self-insurance program to ease their impact on the financial system in times of strain.

Asset managers blame SEC rules for decision to pull bitcoin ETFs; Invesco and Bitwise cite regulator’s insistence on 100% exposure to bitcoin futures alongside other concerns
Steve Johnson – FT
Invesco’s surprise decision to abort the launch of a bitcoin futures exchange traded fund in the US was partly prompted by its view that regulatory constraints would make it too costly for investors, the manager has revealed. The $1.6tn asset manager last month shelved plans to launch a Bitcoin Strategy ETF just hours before the fund was due to list in New York.

ESMA amends derivatives and clearing trading obligations to aid LIBOR transition; The proposed changes come as part of the benchmark transition away from EONIA and LIBOR and onto new alternative risk-free rates benchmarks such as EURSTR.
Wesley Bray – The Trade
ESMA has proposed changes to the clearing obligation (CO) and derivative trading obligations (DTO) to support the market’s ongoing transition away from the EONIA and Libor benchmarks. In its report, the European securities regulator has suggested draft regulatory technical standards (RTS) that amend the scope of the trading obligations for over the counter (OTC) interest rate derivatives (IDR) denominated in EUR, GBO, JPY and USD. The draft changes have now been submitted to the European Commission for approval.

Responsibility amid change
Speech by ASIC Chair Joe Longo at the AFR Super & Wealth Summit, Monday 22 November 2021.
Good afternoon and thank you to the AFR for inviting me to speak today. How good it is to be in front of a room of people, rather than staring at a screen. I would like to begin by acknowledging the traditional custodians of the land on which I am standing, the Gadigal people of the Eora nation. I pay my respects to elders past, present and emerging.

McKinsey Affiliate to Pay $18 Million for Compliance Failures in Handling of Nonpublic Information
The Securities and Exchange Commission today announced that an affiliate of McKinsey & Company that offers investment options exclusively to current and former McKinsey partners and employees has agreed to pay an $18 million penalty for compliance failures. The SEC’s investigation found that the affiliate maintained inadequate policies and procedures to prevent McKinsey partners from misusing material nonpublic information they obtained as consultants to public companies and other McKinsey clients while they were simultaneously overseeing the affiliate’s investment decisions.

Worms and Dinosaurs: Statement on the Proposed Amendments to Modernize How Broker-Dealers Preserve Electronic Records
Commissioner Hester Peirce – SEC
Technology changes faster than regulations do. An example of this phenomenon is the electronic recordkeeping rule for broker-dealers[1] the Commission proposed to update this week.[2] We proposed to amend the broker-dealer recordkeeping rules to eliminate the write-once/read-many (“WORM”) requirement that has proven outdated and unnecessarily burdensome for firms to implement and maintain. This rule, at twenty-five, is a dinosaur.[3] WORM is intended to ensure that records are not altered or erased so that regulators have an accurate picture of firm’s activities. New technologies—if permitted—could give regulators even better insight into what firms do.

ESMA Seeks Input On Emir Clearing Threshold Framework
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published today a discussion paper on EMIR clearing thresholds seeking feedback from market participants and from counterparties trading OTC derivatives.

ESMA publishes draft commodity derivative technical standards under MiFID II Recovery Package
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today published its Final Report on draft Regulatory Technical Standards (RTS) for commodity derivatives under the MiFID II Recovery Package. The draft RTS include proposals on the application procedure for position limit exemptions, a methodology to determine position limits and position management tools for trading venues, which will contribute to stable and orderly commodity derivative markets at a time of heightened scrutiny.

CFTC Adopts Technical Amendments to Rules Governing Reparations Proceedings
The Commodity Futures Trading Commission announced today that it has unanimously approved a final rule adopting technical amendments to the rules governing reparations proceedings. The amendments to Part 12 of CFTC regulations change the title of the Judgment Officer position to Administrative Judge and incorporate gender-neutral language, where applicable.

CFTC Staff Extends Existing Temporary No Action Relief Related to Brexit
The Commodity Futures Trading Commission’s Division of Market Oversight (DMO) and Market Participants Division (MPD) announced today that they are extending previously granted temporary no-action relief in connection with the withdrawal of the United Kingdom (UK) from the European Union (EU), known as Brexit.

Action encouraged: Complete Firm Application and Annual Registration Update processes prior to December 3, 2021
On December 4, 2021, NFA will update the Firm Application and Annual Registration Update in the Online Registration System (ORS). In order to complete these updates, all incomplete Firm Application (FIRMAPPL) and Annual Registration Update (FIRMARU) processes will be deleted. Therefore, NFA encourages firms to complete any FIRMAPPL or FIRMARU process listed on the Processes Not Complete page in ORS no later than December 3, 2021. This system implementation will not affect any completed applications or processes.

MCE Insurance Company Limited enters administration
The Gibraltar Financial Services Commission has announced that MCE Insurance Company Limited has entered into administration.

The Financial Market Entry Office
Japan FSA
In order to expand Japan’s role as an international financial center, the Japanese Government is committed to making its capital markets more attractive with strategic initiatives and to creating an environment that attracts foreign businesses and highly-skilled foreign professionals. As a part of the initiatives, the Financial Services Agency (“FSA”) and Local Finance Bureaus (“LFBs”) established the “Financial Market Entry Office” (the “Office”) on January 12, 2021 to handle all the regulatory process from pre-application consultation, registration, to supervision after the registration for newly entering asset management firms as a single point of contact with all the communications available in English.

To Operators of Specially Permitted Businesses for Foreign Investors, etc. / during Transition Period
Japan FSA
On May 19, 2021, the “The Act Partially Amending the Banking Act, etc. for Ensuring Reinforcement and Stability of Financial Functions in Response to Socioeconomic Changes due to the Impact of the COVID-19 Infection” was enacted and on May 26, 2021, it was promulgated, and it came into effect on November 22, 2021. As a result of this amendment, the Financial Instruments and Exchange Act (FIEA) was partially amended, and a new entry system by notification was established in addition to the existing registration and notification system.

Business Reports on a Special Provision for Deductibility in Performance-based Compensation
Japan FSA
In the tax reform of fiscal 2021, a special provision was established to allow an unlisted, non-family company, including a wholly-owned subsidiary of a listed company, which mainly operates asset management businesses to deduct its performance-based compensation with a number of conditions, including where the calculation methods are described in its business reports filed under the Financial Instruments and Exchange Act (FIEA) and disclosed publicly through the JFSA website. (click PDFhere for an overview.)

Investing and Trading

Bond Traders on Rocky Path Are About to Be Stuffed With Auctions
Alexandra Harris – Bloomberg
No one would choose to sell bonds under these conditions — which may make for a rocky holiday-shortened week in the U.S. Treasury market. In order to complete the monthly cycle of two-, five- and seven-year notes before Thursday’s holiday, the Treasury Department is cramming them into Monday and Tuesday, which hasn’t gone well in the past. Making matters worse is the risk of a Federal Reserve chair nomination announcement the White House has promised by Thanksgiving, in addition to the dozen economic releases on Wednesday.

Peak Liquidity Portends Trouble for Risk Assets
Investors need a plan of action for when the shoe of higher real yields finally drops.
John Authers – Bloomberg
Amid all the excitement and confusion of the last two years, the ascent of the stock market, and the continued robust health of other asset classes, has boiled down to three words: liquidity, liquidity, liquidity.

FTSE 100 CEO pay drops as investors flex muscle during pandemic; Shareholders less likely to support high remuneration, according to PwC analysis
Daniel Thomas – FT
Chief executive pay in the FTSE 100 has fallen by nearly a tenth this year, as companies reined in executive rewards under shareholder pressure during the pandemic. An analysis of annual reports by PwC has also shown that many more companies are now involving environment, social or corporate governance criteria in their pay policies.

There is no easy escape from the global debt trap; No matter what happens to near-term inflation and growth, the world is too indebted for rates to rise much higher
Ruchir Sharma – FT
One of the big mysteries in the global economy is why, though inflation is making a strong comeback, long-term interest rates have barely budged in recent months. So far analysts have explained this odd market behaviour as a symptom of the pandemic, driven by fear of another surge in cases, or massive central bank asset purchases, or — above all — a belief that the current inflation spike is temporary.

Trimming Your Stocks Without Triggering the IRS; How to minimize exposure and keep your investment plan on course while stocks are booming
Jason Zweig – WSJ
With the S&P 500 up 27% so far this year after gaining 18% in 2020, you might have more exposure to stocks than you want. Even if you had a stodgy mix of 60% stocks and 40% bonds at the end of last year and left it alone, your stock position would have risen to about 66% by this week. So how can you trim your risk without triggering a tax headache or knocking your investment plan off course?

Environmental, Social and Corporate Governance

Lazard Backs Wall Street Diversity With ‘Salomon Sisters’ Stake
Erik Schatzker – Bloomberg
Independence Point Advisors, the investment-banking startup known by the nickname “Salomon Sisters,” marked its debut as one of Wall Street’s only women-owned firms by forming a partnership with Lazard Ltd.

Fund Managers Face More Delays as EU Greenwash Rules Hit Hurdles
Frances Schwartzkopff – Bloomberg
New technical standards proving harder to design than expected; EU is struggling to stick to ambitious timeline for rulebook
Europe will likely delay a vital plank of its anti-greenwashing regulation for fund managers, as authorities overseeing the process get slowed down by the sheer complexity of the task, according to a person familiar with the process.

Carbon Markets May Soon Free Billions for Investment. But Where? New maps and analyses of carbon-rich regions could direct post-Glasgow funds where they’ll do the most good.
Eric Roston – Bloomberg
Nations clinched the Paris Agreement six years ago but finished writing it only at COP26 in Glasgow this month. There, negotiators finally checked the box on something called “Article 6,” a section of the 2015 climate pact governing how countries can trade credits to emit CO2. The new standards should also impose structure and transparency on opaque voluntary markets where companies buy and sell carbon offsets.

ECB Says Most European Banks Still Don’t Have Climate Strategies
Jeff Black – Bloomberg
The European Central Bank has warned that most lenders it oversees have yet to produce concrete plans showing how they will change their business strategies to account for climate change.

Emissions target pledges face scrutiny as dust settles on COP26; US and Australia have already called into question whether they needed to upgrade climate targets
Leslie Hook and Benjamin Parkin – FT
Big polluting nations have cast doubt on whether they would upgrade their emissions targets next year, after agreeing at the COP26 climate summit in Glasgow to “revisit and strengthen” them in line with the Paris accord.


Once taboo, open-source skills now sought by Goldman Sachs, Morgan Stanley and other top sell sides; The world’s biggest banks want the new talent to possess at least some open-source technology skills, which was unthinkable a decade ago. It’s a win for advanced open-source practitioners, but how did it materialize? The answer is likely a not-so-even split between compulsion and choice.
Rebecca Natale – Waters Technology
Open-source software—finally—is reveling in its own renaissance era on Wall Street. In its first life, circa 2009, the would-be movement was dogged by salacious headlines featuring a familiar name, one-time Goldman Sachs programmer Sergey Aleynikov, and themes of theft, crime and misappropriation. Over the last decade, this perception has been all but overwritten. The world’s biggest sell-side institutions have gone from skeptics (if not outright naysayers) to some of the most active

Global Managers Circle as Retiring Boomers Cash In Billions
Matthew Burgess
Almost two million Australians will soon start drawing down A$300 billion ($218 billion) in savings as they leave the workforce, and that’s providing opportunities for domestic, and increasingly overseas, asset managers as retirement costs soar at the quickest pace in seven years.

Ex-Natixis Banker Seeks $11 Million to ‘Avenge’ Shattered Career
Gaspard Sebag – Bloomberg
Banker unsuccessfully sought confidential information for suit; Case puts spotlight on cross-court dispute, criminal complaint
André M. Romain is seeking 10 million euros ($11 million) from Natixis SA for what he says is a finance-industry career ruined by the French bank’s management. The claim is one of several complaints and lawsuits lodged by the 45-year-old former employee of Natixis’s U.S. unit alleging mismanagement and misconduct by the bank. The damages he’s asking for at the Paris employment tribunal emerged as part of a parallel access-to-documents case he had filed, where French judges ruled against his request as they questioned his motives.

JPMorgan to Reimburse $5,000 to H.K. Bankers for Quarantine
Cathy Chan – Bloomberg
Program applies to quarantine between Dec. 1 and Nov. 30, 2022; JPM CEO Jamie Dimon was exempted from quarantine last week
JPMorgan Chase & Co. is offering to reimburse Hong Kong employees up to $5,000 to compensate for their quarantine stay as the financial hub sticks to its zero-Covid policy.

HSBC faces struggle to attract bids from Big Four auditors; Bank fears size and complexity will hamper interest in tender worth $1bn over a decade
Michael O’Dwyer and Tabby Kinder – FT
HSBC bosses fear they will struggle to convince some of the UK’s largest accounting firms to bid for the bank’s $94m-a-year audit after initial outreach to contenders suggested a number of Big Four firms were reluctant to take on the role.

Traders driving rise in institutional demand for ETFs, says BlackRock; According to BlackRock’s co-head of ETF markets and investments, Samara Cohen, traders are pointing portfolio managers towards ETFs in a bid to add fixed income exposure and replace derivatives.
Annabel Smith – The Trade
Institutional interest in exchange traded funds (ETFs) has risen significantly in the last few years and is being driven by trader demand, says BlackRock’s Samara Cohen. Speaking to The TRADE, Cohen suggested that portfolio managers were increasingly turning to ETFs as a result of demand from traders to add fixed income exposure, create cash management sleeves or replace derivatives.


China FX Panel Urges Banks to Cap Speculation as Yuan Surges
Bloomberg News
An organization formed by key participants in China’s currency market urged banks to limit speculative foreign-exchange trading after the yuan climbed to a six-year high versus peers.

A $391 Million Fine Has China’s Board Members Quitting En Masse
Bloomberg News
China’s independent directors are quitting once coveted seats on the boards of listed companies, spooked by fines levied on five directors of Kangmei Pharmaceutical Co. that totaled hundreds of millions of dollars.

Millions of Spam Messages Blocked in Philippines as Scams Surge
Cecilia Yap – Bloomberg
Philippine telecommunications provider Globe Telecom Inc. said it has blocked nearly 71 million spam messages and deactivated 5,670 mobile-phone numbers this year, amid public complaints about dodgy job offers they receive on their gadgets.

U.K. Mortgage Lender Offers Rare 40-Year Deal at a Fixed Rate
Andrew Atkinson – Bloomberg
Kensington Mortgages joins nascent market for ultra-long fixes; Move comes with inflation expected to spur BOE rate increases
h inflation accelerating and the Bank of England set to hike interest rates, a U.K. mortgage lender is offering homebuyers one less thing to worry about.

Nigeria’s Data Center Industry Taps Latest in Energy-Efficient Technology; The growing sector’s new construction projects aren’t forced to rely on any existing infrastructure
Isabelle Bousquette – WSJ
Nigeria’s fledgling data center industry reflects the benefits of a fresh start, as companies starting from scratch take advantage of more energy-efficient technology, industry executives say. Reducing energy consumption is a priority for the tech sector world-wide, given the huge amount of power needed to keep the world’s computers running. Data centers, which typically consume large amounts of energy and water to keep servers cool, are responsible for 2% of all global greenhouse gas emissions, said Pankaj Sharma, executive vice president of Secure Power at Schneider Electric, a company that specializes in maximizing the energy efficiency and sustainability of data centers and other buildings.


The Athletic Searches Far and Wide for New Subscribers as It Seeks a Sale; The sports-media startup has laid off staff, scrapped a documentary unit and canceled some podcasts while seeking new avenues of growth.
Gerry Smith and Lucas Shaw – Bloomberg
Since its debut in 2016, The Athletic has been heralded as a model for how sports journalism can survive on subscription revenue alone. Its founders now realize that only goes so far.

Where to find certainty in a fragile back-to-office world; Look to leaders with experience of managing fragmented workforces — the key is communication
Isabel Berwick – FT
Getting out of our pandemic comfort zones has become a fact of life for many workers in recent months, as the tentative return to the office gathers pace. Even previously mundane activities such as commuting and interacting with colleagues can be a challenge. We are out of practice, or “deskilled”, as we might say in the new workplace jargon. Given the high reported levels of worry and stress, especially for parents and caregivers, it is unsurprising that the latest developments in the global return-to-workplace saga involve staff collectively resisting orders to get back to city-centre desks. At Hearst, a magazine publisher, 300 staff have signed a letter to senior management, objecting to being told to return to the New York office for two days a week, rising to three days sometime in 2022.

Growth of The Information is good news for media business; Website aimed at Silicon Valley proves value of subscription model for journalism
Anna Nicolaou – FT
The Information, a technology news publication aimed at Silicon Valley insiders, has reached 225,000 active users, underlining the rise of specialist subscriptions as a business model for journalism. The San Francisco start-up, founded by former Wall Street Journal reporter Jessica Lessin in 2013, is expanding its focus beyond scoops and analysis with a weekend lifestyle edition.

A Guide to the Best Chromebook Laptops, All Under $700; Use mostly cloud-based apps? Live in Google’s ecosystem? One of these five Chromebooks could be your next computer.
Nicole Nguyen – WSJ
I wrote most of this column on a $379 laptop. It’s good for surfing the web and composing Google docs—as long as there aren’t too many tabs open. Lenovo’s IdeaPad Flex 3 is inexpensive because it’s a Chromebook, a minimalist laptop best at running web apps in Google’s Chrome browser. Like Lenovo, all the other big PC makers have them in their lineups. Do you use cloud-based services for work or school? Live in Google’s ecosystem? At the risk of me sounding like Geico, you could save money by switching to Chrome OS for your next computer.

Los Angeles Home of Thomson Reuters Publishing Heiress Hits the Market for $43 Million
Taylor Thomson is selling her 1920s Bel-Air house after buying in Santa Monica
E.B. Solomont – WSJ
Media and publishing heiress Taylor Thomson, a member of one of Canada’s wealthiest families, is listing her Los Angeles mansion for $43 million. The circa 1926 house, set on just over an acre, was one of the first homes built in Bel-Air, said listing agent Drew Fenton of Hilton & Hyland. He is marketing the property with Jade Mills of Coldwell Banker Realty.

Remote Work Can Be a Very Bad Way to Start a Career
Anne Helen Petersen and Charlie Warzel – WSJ
Kiersten graduated from college straight into the middle of a pandemic and a precarious job market. She managed to find an entry-level job with a government contractor that allowed her to work from the safety of her home. There was no fanfare on her first day; she simply opened her laptop and began an endless series of training sessions conducted over Zoom. The sessions were helpful, Kiersten recalls, but very formal, with little room for socializing. Even among her fellow new hires, Kiersten felt at a remove. “I just stared at their Zoom boxes and willed us to be friends,” she told us. “But we never had the opportunity to interact.”

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The Spread

Volatility ETFs Aren’t Flashing Signs of Market Fear

Observations & Insight The FIA is seeking fintech startups for its annual fintech showcase, the Innovators Pavilion, at the Futures and Options Expo in Chicago November 14-15. All selected fintech startups will participate in a pitch competition and one will be...

Past JLN Newsletters

SEC charges 11 in ‘massive’ crypto Ponzi scheme

SEC charges 11 in ‘massive’ crypto Ponzi scheme

First Read Hits & Takes John Lothian & JLN Staff Here is your mood brightener of the day from a story in The New York Times by Farnaz Fassihi and Michael Levenson. The lead paragraph reads: The secretary general of the United Nations warned on Monday that...

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