Hits & Takes
John Lothian & JLN Staff
Here is the fourth in the series of reflections by Ray Pellecchia, this one titled “My 9/11 and Beyond: Friday, September 14.”
Tim Mahoney, the former CEO of BIDS Trading, a New York-based alternative trading system for U.S. equity block trading, is the recipient of STA’s 2021 Dictum Meum Pactum Award. The Dictum Meum Pactum (DMP) Award recognizes those individuals who have demonstrated an unwavering commitment to the betterment of the financial services industry and have exhibited acts of integrity at the highest level consistent with the ideal STA has supported since its inception: Dictum Meum Pactum, “My Word Is My Bond.” — STA
The NFA’s August board meeting update is out. You can find it HERE.
Leo Melamed will be interviewed by CME board member Terry Savage at a Chicago Executive Club virtual event on September 21 at 5 p.m. CT. They will be discussing his book, “Man of the Futures.” Register HERE.
SIX will be presenting at PostTrade 360 Copenhagen on September 29 and 30. It is an in-person and virtual event. The location is Axelborg, in Copenhagen, Denmark.
The team of the week for Wall Street Rides Far is “Team NEO Exchange.” For the team at the NEO Exchange—a Tier 1 Canadian stock exchange—the decision to participate in Wall Street Rides FAR was an obvious one. With philanthropic endeavors at the cornerstone of NEO’s mission, the exchange makes it a point to build strong relationships with charitable organizations and give back in ways that go beyond simple monetary donations. — WSRF
Today Linda Haven is celebrating 35 years with the futures and securities group at BMO Harris Bank. Congratulations, Linda! — LinkedIn
The combined Broadridge and Itiviti teams are going to be in force at FIA’s IDX on September 27 and 28. The cornucopia of associates attending are Paul Clark, Paul Chambers, Tim Wade, Mike Johnson, Hugh Daly, Mike Thrower, Marcus Ridge, Anthony Brockley, Ruth Chambers, David Farmery, Dean Shortt, Alexandra Burdett, Dean Bruyns, Rickard Davidsson, William Sumner and Mohamed Arkate.
Apex Next Investor Outlook was named the winner at the WealthManagement.com 2021 Industry Awards in the Technology Providers – Thought Leadership category. — LinkedIn
Registration for the 5th Annual Global Policy Forum, or DC Fintech Week 2021, is open. Speakers include PayPal CEO Dan Schulman and Visa CEO Al Kelly; the People’s Bank of China #DigitalYuan point person Mu Changchun; Infosys Co-Founder (and developer of the India Stack) Nandan Nilekani; Federal Deposit Insurance Corporation (FDIC) Chair Jelena M.; and Bank for International Settlements – BIS General Manager Agustin Carstens — FintechWeek
The 10 shortlisted nominees for the Women in Derivatives (WIND)’s Rising Stars Award at this year’s gala are:
– Brittany Garland, Executive Director at IHS Markit
– Miglena Lazarova, Executive Director Head of Client Service Operations at The Depository Trust & Clearing Corporation (DTCC)
– Sara Levin, Vice President, Institutional Cross Asset Solutions at WallachBeth Capital
– Rosalind Li, Options Quant Trader at Virtu Financial
– Chelsea Lo, Vice President, Markets and Securities Services at Citi
– Dipshikha Mahajan, Associate Director, Commodities Sales, at Standard Chartered Bank
– Kathleen McArthur, Partner at Sullivan & Cromwell LLP
– Reshma Ballie McGowan
– Corentine Poilvet, Head of RepoClear, Collateral and Liquidity Management at LCH
– Meghan Tomczyk, Operations Manager at SIMON Markets LLC
Here is a video of Eurex’s Randolf Roth speaking about the newly launched Bitcoin ETN futures. — LinkedIn
Reuters is looking for an Asia Financial Service Correspondent to work in Hong Kong. — Reuters
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
In a unique customer outreach strategy, the Chattanooga Times Free Press is investing millions of dollars in its readership with the purchase of thousands of iPads to put in the hands of its subscribers before it ends the daily delivery of its print newspaper. This week the newspaper began converting print subscribers to a digital replica of their newspaper available every day on their iPads, usually by 4 a.m. local time. Delivery of a physical newspaper will cease by mid-2022 with the exception of the Sunday edition. More details and a video interview with the publisher of the Chattanooga Times Free Press are here. ~SC
Broadway Technology Names Dan Romanelli Head of Relationships
FinTech veteran will direct business development and client relationship management initiatives
Broadway Technology, a leading provider of high-performance front-office solutions, today announced it appointed Dan Romanelli as Head of Relationships. In his role, Romanelli is responsible for driving business development initiatives and client relationship management, overseeing a global team of sales and relationship managers. Romanelli’s appointment helps Broadway extend its global client success during a period of ongoing growth and strengthens its position as a premier technology partner focused on delivering exceptional client experiences.
*****Great hire by Broadway Technology. Congratulations, Dan!~JJL
Autism Science Foundation Is Now Accepting Cryptocurrency Donations; This new funding mechanism offers donors even more ways to support autism science and families
The Autism Science Foundation (ASF), a not-for-profit organization dedicated to supporting and funding innovative autism research, today announced it is now accepting cryptocurrency donations via Every.org. Bitcoin, Ethereum, USD Coin, Dogecoin, Litecoin, Dai and Bitcoin Cash are all accepted.
***** We will take anything of value, or that pretends to have value.~JJL
Climate change: Young people very worried – survey
Roger Harrabin – BBC
A new global survey illustrates the depth of anxiety many young people are feeling about climate change. Nearly 60% of young people approached said they felt very worried or extremely worried. More than 45% of those questioned said feelings about the climate affected their daily lives. Three-quarters of them said they thought the future was frightening. Over half (56%) say they think humanity is doomed.
***** They are worried and motivated to do something about it.~JJL
We are creeping towards a continuous working week; The decline of the ‘9-5’ has been under way for decades — but now it’s creating workplace winners and losers
Sarah O’Connor – FT
In 1929, the Soviet Union replaced the seven day week with the nepreryvka or “continuous working week”. Workers were split into five groups on five-day cycles with staggered rest days so that production never stopped. It became common for people to colour-code their friends in their address books according to which day they had off.
***** As a journalist, you are never off. You are always paying attention, even if sipping a cold drink at the pool. Work never ends.~JJL
Monday’s Top Three
Our top story Monday was Bloomberg’s Brevan Howard Hedge Fund Joins the Rush to Crypto With New Unit. Second was My 9/11 and Beyond: Tuesday, September 11, reminiscences from Ray Pellecchia, who was the managing director of media relations for the New York Stock Exchange at the time of the terrorist attacks. And third was another story on the first topic, Brevan Howard expands further into crypto as institutional interest jumps, from Reuters.
26,619 pages; 235,830 edits
Biden to Nominate CFTC Picks to Fill Three Democratic Seats
Benjamin Bain and Justin Sink – Bloomberg
Rostin Benham has been acting chair of regulator since January; Kristin Johnson, Christy Goldsmith Romero also to be nominated
President Joe Biden plans to nominate officials for three Democratic seats on the Commodity Futures Trading Commission, the nation’s main derivatives regulator. The White House will tap Rostin Behnam to lead the agency, as well as Christy Goldsmith Romero and Emory University law professor Kristin Johnson to serve as commissioners, the White House said Monday in an e-mailed statement. The CFTC’s only current Republican member is Dawn Stump, following the departure last month of Brian Quintenz, leaving an open GOP seat.
Goldman Sachs CFO Stephen Scherr to Retire; Leveraged-finance banker Denis Coleman to succeed Scherr, who will leave at the end of the year
Liz Hoffman – WSJ
Goldman Sachs Group Inc. Chief Financial Officer Stephen Scherr is retiring from the Wall Street powerhouse. Mr. Scherr, who led the firm’s yearslong push into Main Street banking before being named CFO in 2018, will leave at the end of the year. He will be succeeded by Denis Coleman, a leveraged-finance banker who has spent 25 years at the firm.
NYSE Develops Asset Class Tied to Sustainability Amid ESG Push
Katherine Doherty – Bloomberg
Company partners with Intrinsic Exchange Group on initiative; Demand for environmental, social investments is on the rise
The New York Stock Exchange is helping develop a new class of publicly traded assets tied to services that are beneficial to the environment, amid a boom in demand for sustainable investments.
China uses anti-fraud app to track access to overseas financial news sites; Police identify and question people on back of software meant to prevent online scams
Sun Yu – FT
Chinese police are using a new anti-fraud app installed on more than 200m mobile phones to identify and question people who have viewed overseas financial news sites, according to individuals summoned by the authorities. The app was launched in March by the public security ministry’s National Anti-Fraud Center and blocks suspicious phone calls and reports malware. Police said it was needed to combat a surge in fraud, often perpetrated by overseas operations managed by Chinese and Taiwanese nationals.
Gary Gensler Plans to Outline SEC Agenda in Senate Hearing; The Securities and Exchange Commission chairman will highlight investor protection, seek more resources for the agency
Paul Kiernan – WSJ
Securities and Exchange Commission Chairman Gary Gensler is headed to Capitol Hill to testify about a far-reaching policy agenda that could shake up Wall Street firms’ business models and require heftier disclosures from public companies. Mr. Gensler is scheduled to take questions Tuesday from members of the Senate Banking Committee in a hearing that begins at 10 a.m. ET.
DeFi Is Crypto’s Wall Street, Without a Safety Net; Decentralized finance allows crypto enthusiasts a do-it-yourself version of investment banking, bringing high rewards and huge risks
James Mackintosh – WSJ
“Trade. Earn. Win.” The happy bunny flipping a pancake and the double- or triple-digit interest rates on offer are closer to the marketing style of Las Vegas than Wall Street. Don’t be fooled: PancakeSwap and its competitors in what’s now known as DeFi, or decentralized finance, are bringing casino capitalism to the crypto masses.
Energy Prices in Europe Hit Records After Wind Stops Blowing; Heavy reliance on wind power, coupled with a shortage of natural gas, has led to a spike in energy prices
Joe Wallace – WSJ
Natural gas and electricity markets were already surging in Europe when a fresh catalyst emerged: The wind in the stormy North Sea stopped blowing. The sudden slowdown in wind-driven electricity production off the coast of the U.K. in recent weeks whipsawed through regional energy markets. Gas and coal-fired electricity plants were called in to make up the shortfall from wind.
Cboe FX Launches Hosted Algo with XTX Markets
Colin Lambert – The Full FX
Cboe FX has announced the launch of a hosted algorithmic execution service in collaboration with XTX Markets. The new service will enable Cboe FX participants to access the XTX Markets Execution Algo, which is designed to alleviate implementation shortfall, via the Cboe FX ECN.
Covid Hospitalization Crisis Reaches Fever Pitch in Southern I.C.U.s
Charlie Smart – NY Times
Hospitals in the southern United States are running dangerously low on space in intensive care units, as the Delta variant has led to spikes in coronavirus cases not seen since last year’s deadly winter wave. One in four hospitals now reports more than 95 percent of I.C.U. beds occupied — up from one in five last month. Experts say it can become difficult to maintain standards of care for the sickest patients in hospitals where all or nearly all I.C.U. beds are occupied.
BHP Spent Just Half a Day’s Profit Looking for Copper Last Year
Thomas Biesheuvel – Bloomberg
World’s biggest miner spent $53 million on copper exploration; BHP is buying into junior developers to grow copper business
Copper might be BHP Group’s most prized metal, but the world’s biggest mining company spent little more than it earned in an average 12-hour period last year exploring for new deposits.
Bitcoin Cosplay Is Getting Real
Binyamin Appelbaum – NY Times
It’s been a good month for Bitcoin believers. The currency of the future — or is it the future of currency? — became legal tender in El Salvador. Some might dismiss as a publicity stunt the embrace of a digital currency by a country where only a third of the population has internet access. Some Salvadorans took to the streets to protest. But let’s not minimize this moment. Esperanto, the language of the future, never managed to become an official language in any country.
Elizabeth Warren Asks the Fed to Break Up Wells Fargo; She wants the Federal Reserve to revoke a key operating license and force a split between Wells Fargo’s banking and Wall Street businesses.
Emily Flitter – NY Times
Senator Elizabeth Warren says Wells Fargo has run out of time to fix the many internal problems that have harmed its customers. In a letter to the Federal Reserve chair, Jerome H. Powell, on Monday, Ms. Warren asked the Fed to force the financial giant to break off its core banking activities, like offering checking and savings accounts and loans, from its other financial services.
Corrupt Oil Trader Turns On Colleagues in Massive Africa Bribe Case; A London-based trader funneled millions of dollars to African officials. When he was caught, he talked.
Christian Berthelsen, Javier Blas, and Bob Van Voris – Bloomberg
When Anthony Stimler left Glencore Plc in August 2019, he had two big secrets: For a dozen years, he’d paid millions in bribes to African officials and intermediaries. And he was now helping a U.S. Justice Department investigation into the company and numerous former colleagues. Corruption isn’t exactly unheard of in the extraction and trading of commodities, especially in the developing world. But details of Stimler’s cooperation deal, obtained from the U.S. attorney’s office in Manhattan and which haven’t been reported before, offer a rare opportunity to see how it works — the scale, scope and almost routine nature of such transactions.
Libor Alternative Is Winning Over Derivatives Traders; Trading in financial contracts tied to Wall Street’s preferred alternative, SOFR, has surged
Julia-Ambra Verlaine – WSJ
Efforts to replace the troubled London interbank offered rate are showing signs of progress. Trading in derivatives tied to Wall Street’s preferred alternative, the Secured Overnight Financing Rate, surged 78% in August, according to TD Securities. The increase comes ahead of a year-end deadline to phase out Libor, which helps set interest costs on trillions of dollars in financial products but was marked for scrap several years ago after a manipulation scandal.
Don’t Treat Us Like Terrorists, Insider Trading Suspects Say
Gaspard Sebag and Stephanie Bodoni – Bloomberg
Accused argue privacy rights were breached by investigators; EU judges to provide guidance after referral from France
Two men accused of insider trading told European Union judges that investigators shouldn’t have intruded into their privacy in the same way they’re allowed to in terrorist or spying probes. Lawyers for independent traders Alexis Kuperfis and Lucien Selce — who have been charged in France — said at a Luxembourg court hearing Tuesday that only issues of national security could warrant some exemptions to strict EU privacy rules and allow investigators to access phone records.
Investment banks accelerate efforts to automate junior ‘grunt work’; Goldman, Barclays and Moelis plan to make basic ‘pitch book’ tasks less arduous for burnt out staff
Joshua Franklin – FT
Wall Street banks are stepping up efforts to automate “grunt work” foisted on younger investment bankers, portraying the changes as an attempt to reduce workloads and stop young talent from leaving the industry. Companies including Goldman Sachs, Barclays and Moelis have initiatives under way to automate basic functions such as generating pitch books and valuation modelling, according to bank executives.
Hunt for small asset management deals hottest since 2007; Groups eschew big complicated acquisitions that come with integration problems and risks
Michael Mackenzie and James Fontanella-Khan – FT
Smaller deals between asset managers are running at the hottest pace in almost 15 years as businesses hunt for tactical acquisitions instead of bigger, riskier purchases — many of which have failed in one of the world’s most fragmented sectors.
Libor replacement reaches Wall Street’s leveraged loan market; Loans to fund buyout of chicken producer Sanderson Farms will be pegged to new Sofr benchmark
Joe Rennison – FT
Bank of America has started marketing the first leveraged loan tied to the interest rate that is set to replace Libor, in a milestone for the industry as it transitions away from the disgraced lending benchmark.
With school year underway, COVID-19 cases and hospitalizations rising for Illinois kids
Joe Mahr, Karen Ann Cullotta – Chicago Tribune
Newly released federal and state data shows COVID-19 cases and hospitalizations climbing among Illinois children, along with outbreaks tied to schools, as the state tries to balance limiting the virus’s spread while keeping kids in class. Since July, in all regions of the state, the number of confirmed infections for school-age children has climbed at least through early September, the most recent data available. Downstate regions have seen the biggest spikes. And childhood COVID-19 hospitalizations in Illinois — although still relatively rare — are nearing the levels seen at the peak of past surges.
U.K.’s Johnson to Give Green Light to Covid Booster Shots
Emily Ashton – Bloomberg
Prime minister will set out details in news conference Tuesday; Children aged 12-15 in England will also be offered vaccines
Boris Johnson will confirm Tuesday that booster vaccinations against coronavirus will be rolled out to the most vulnerable people this fall, as he sets out the U.K.’s new approach to tackling the virus.
Most People Don’t Need Covid Vaccine Booster, Scientists Say
Naomi Kresge – Bloomberg
Lancet review of data is likely to stir debate on third dose; Authors include two FDA experts who are exiting jobs this year
Covid-19 vaccines work so well that most people don’t yet need a booster, an all-star panel of scientists from around the world said in a review that’s likely to fuel debate over whether to use them.
Should Your Kids Be Vaccinated Against Covid-19? The U.K. is offering a single shot for children aged 12-to-15. While young people are least at risk, the move by the government of Boris Johnson makes sense.
Sam Fazeli – Bloomberg
The U.K. has decided to offer inoculations against Covid-19 to children aged 12 to 15 — but with just one shot of the Pfizer-BioNTech vaccine. Some may wonder why it’s not simply following what the majority of countries are doing: using the two doses that a Phase III trial has shown to have a 100% efficacy in preventing an infection. It’s not the first time the government of Prime Minister Boris Johnson has tinkered with vaccine doses. It had taken a gamble on using an extended dose interval in adults — as many as 12 weeks, in contrast to other countries, which had three weeks for the Pfizer-BioNTech vaccine and four weeks for the Moderna version.
China Locks Down City of 4.5 Million as Delta Surges Again
China locked down a city of 4.5 million people in the southeastern province of Fujian after detecting a dozen coronavirus cases, an attempt to once again halt a delta outbreak and maintain its strict zero-tolerance approach to Covid-19.
Japan to Ease Off Its Covid Curbs With Care, Top Spokesman Says
Isabel Reynolds and Emi Nobuhiro – Bloomberg
Japan will lift its virus restrictions gradually, in a process that will require the cooperation of businesses and the understanding of the public, the government’s top spokesman said.
Pfizer Shots for Over-50s Recommended in U.K. Booster Drive
James Paton – Bloomberg
Pfizer is preferred option, or half-dose of Moderna, JCVI says; Move follows months of debate over need for extra shots
A U.K. panel recommended giving Covid-19 booster shots to people aged 50 and over and other vulnerable groups as the government aims to bolster the immunity of its population and avert a potential winter virus surge.
Scientists who quit FDA criticise plan for widespread Covid vaccine boosters; Pair who left agency two weeks ago among authors of scathing critique in academic journal
Kiran Stacey – FT
Two top scientists who recently announced their retirements from the US drug watchdog have criticised the policy of giving most people Covid-19 booster vaccinations, just days before the Biden administration plans to start doing so.
Vaccine Mandates Are Coming to Offices, but the Honor System Now Rules; Shifting guidance on mask wearing and a lack of disclosure over vaccination status rattle some workers going back to offices
Ray A. Smith – WSJ
Employees across the country have been adapting to a patchwork of rules for Covid-19 vaccination, testing and masking as workplaces reopen more widely. The Biden administration’s announcement that it will mandate vaccines for workers or require weekly testing could help standardize protocols in workplaces. For now, many workplaces operate on the honor system—one in which health information is often given voluntarily, and employees have few ways to be sure their co-workers are following the rules.
Exchanges, OTC and Clearing
NYSE Pillar Options Migration: First Mandatory Weekend Testing Opportunity
Weekend Production Testing
On Saturday, September 18, 2021, NYSE Arca Options (the “Exchange”) will conduct its first of two mandatory weekend testing opportunities. All Participants that connect directly to the Exchange must complete one of the mandatory testing sessions. Upcoming testing opportunities are: September 18: End-to-end test including CAT submission and OCC participation – Mandatory test opportunity 1. October 16: End-to-end test including CAT submission – Mandatory test opportunity 2, October 30: Final confidence test
Cboe FX to launch hosted algo service with XTX Markets
Cboe Global Markets
Cboe FX to support access to XTX Markets Execution Algo via its ECN platform; Participants will be able to access advanced agency execution solution utilizing Cboe FX’s technology and credit infrastructure; This service meets growing demand for algorithmic execution in FX markets
Cboe FX Markets, a Cboe Global Markets, Inc. (Cboe: CBOE) company and a leading platform for institutional foreign exchange (FX) trading globally, today announced the launch of a hosted algorithmic execution service in collaboration with leading electronic liquidity provider XTX Markets. This service will help enable Cboe FX participants to access the XTX Markets Execution Algo (‘XTX Algo’), which is designed to alleviate implementation shortfall, via the Cboe FX ECN. Cboe FX has been granted exclusive rights over use of the XTX Algo in the anonymous ECN space and this service is available for execution of the most actively traded pairs in the spot FX market, including: EUR/USD; USD/JPY; GBP/USD; AUD/USD; USD/CAD; USD/CHF; USD/CNH.
Toronto Stock Exchange Announces the 2021 TSX30, Showcasing the Exchange’s Top-performing Companies; Canada’s premier equities market to celebrate TSX30 companies today in a virtual market open ceremony
Toronto Stock Exchange (TSX) today announced the 2021 TSX30™, the Exchange’s flagship program showcasing the 30 top-performing stocks over a three-year period, based on dividend-adjusted share price performance. The annual ranking serves to spotlight the achievements and sustained success of TSX’s leading listed companies while also highlighting the depth and diversity of Canada’s powerful capital markets ecosystem.
NYSE and Intrinsic Exchange Group Partner to Launch a New Asset Class to Power a Sustainable Future
The New York Stock Exchange (NYSE), part of Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology and market infrastructure, and Intrinsic Exchange Group (IEG) announced today that they are jointly developing a new class of publicly traded assets called Natural Asset Companies, or NACs. NACs are sustainable enterprises that hold the rights to ecosystem services produced by natural, working or hybrid lands.
European benchmark index futures roll update
As we have stepped into the final week of futures roll period, we would like to show statistics of the current September roll with a focus on Benchmark Index Futures.
Sporttrade to Leverage Nasdaq Surveillance Technology to Bolster Market Integrity of Sports Betting Platform; Cloud based solution supports Sporttrade’s efforts in building a fair, transparent and safe marketplace with robust surveillance processes
Nasdaq (Nasdaq: NDAQ) and Sporttrade, a Philadelphia-based fintech, sports betting company, announced today that Sporttrade will leverage Nasdaq technology for surveillance of its sports betting and trading platform. Founded in 2018, Sporttrade was built to advance the sports betting industry by utilizing exchange technology and processes to enhance and democratize the traditional betting experience. Sporttrade’s open trading marketplace will allow participants to trade sporting events the same way they trade stocks, with tighter spreads, more liquidity, and unique features like “always on” in-play trading, and the ability to trade in and out of bets at any time.
BME launches Braindex, a 100% online financial training platform
This new educational environment, which is based on Instituto BME’s over 30 years of experience, seeks to promote financial and stock market culture; The courses, aimed at all types of students, focus on Financial Markets and Products, Disclosure, Technology and Regulation applied to the sector
BME has launched Braindex, featuring 100% online financial training imparted by top-level teachers, more accessible and aimed at all types of students, from those who start from scratch and are interested in receiving basic training to university students and industry professionals who need to further their training. All this is offered by Braindex, the new online educational environment created by Instituto BME, BME’s training center, which has over 30 years of experience, during which it has imparted lessons to more than 126,000 students. The platform already provides more than 27 courses, both paid and free of charge, and its offering will periodically be widened so that it will become a live platform with hundreds of courses available.
BME admits the first Green Bond from the Kingdom of Spain, worth 5 billion euros
The issue has a maturity of 20 years and will be used to finance projects that promote the objectives of the Spanish environmental agenda;The volume issued was 12 times oversubscribed, thus bringing the bond’s yield down to 1.034% and reducing financing costs; With this placement, the volume of green bonds traded on BME’s AIAF market exceeds 47 billion euros
BME’s AIAF Fixed Income Market today admitted for trading the first green bond issue from the Kingdom of Spain, with a value of 5 billion euros. The bonds have an annual coupon of 1% and a term of 20 years. During the placement process the volume was oversubscribed 12 times, thus allowing a reduction of the spread with respect to the same term benchmark Treasury bond and contributes to lower average funding cost of its overall portfolio to 1.65%.
SET Joins Hands With SEC To Promote SMEs & Start-Ups, Paving The Way For Potential Listing
The Stock Exchange of Thailand (SET) and the Office of the Securities and Exchange Commission (SEC) organized the “LiVE Demo Day: The New Road to Capital Market” on September 14, 2021, to highlight role in inclusively offering capital market funds to small and medium-sized enterprises (SMEs) and start-ups. The event’s keynote speech was delivered by Finance Minister Arkhom Termpitayapaisith on the strategic approach to lift entrepreneurs’ competitiveness. Investors, entrepreneurs and interested public were also invited to attend a virtual conference where 21 potential SMEs and start-ups presented their profile and success stories.
Upgrade of the derivatives market game environment to version 6.12
Dear customers, This weekend, on 18 and 19 September 2021, the game environment of Derivatives market will be unavailable due to upgrade to SPECTRA trading and clearing system to 6.12 version. On Monday, 20th of September, the new version will be available for connection on regular game environment schedule.
— Performance Bond Requirements: Energy – Effective September 14, 2021 — CME
— TAS, TAM, BTIC, and TACO Transactions — CME
— Review of Collateral Haircuts — CME
— September 2021 Final Foreign Currency Settlement Prices — CME
— Notice of Summary Action, MEMBER FIRM: Citigroup Global Markets, Inc., CME RULE VIOLATION: 526.F. BLOCK TRADES — CME
Sell side pushing for bilateral connectivity for fixed income; Fixed-income liquidity providers, battling tighter margins, want to execute directly with clients, but are buy-side and tech firms willing to absorb the connectivity costs?
Hamad Ali – Waters Technology
Sell-side firms are increasingly seeking bilateral connections in more liquid fixed-income markets with their buy-side counterparts, as bank trading margins are hit by the costs of execution on electronic venues, sources tell WatersTechnology. Now, while more liquidity providers are keen to shift their trading volumes away from venues, the challenge they face is convincing the buy side to commit to the tech lift of these connections.
Pure Digital Executes First Test Trade
Colin Lambert – The Full FX
Digital assets platform Pure Digital, part of Puremarkets, has successfully executed a live test trade on its wholesale digital assets platform, which is a fully automated, high throughput OTC marketplace for digital currencies with physical delivery routed to bank-grade custodians.
Alipay break-up is power grab by China’s government; Transactions data offers new opportunities for state surveillance
The editorial board – FT
On its own, the Chinese government’s decision to break up Alipay, the financial services super app run by billionaire Jack Ma’s Ant Group, might be seen as yet another heavy-handed state response to a valid new regulatory challenge. Online payments companies, and the ownership of the big data sets of consumer transactions they create, have potentially big implications for privacy and for financial stability. Yet to believe this is the ultimate motivation of the Chinese Communist party in taking control of this data and quashing rival power centres is naive. It is part of the CCP’s authoritarian quest to bring about a wholesale transformation of Chinese society.
Paytm Blazed a Trail in Indian Fintech but Faces Crowded Market as IPO Nears; Company isn’t the dominant player in payments that it wanted to become
Shefali Anand and Jing Yang – FT
Paytm, a pioneer in mobile payments in India and one of the country’s best-known startups, set out years ago to build an ubiquitous digital-finance ecosystem much like Ant Group Co.’s Alipay in China.
Fixed income trades debut on Broadridge’s sponsored general collateral service; Innovation in partnership with DTCC and BNY Mellon expands post-trade capabilities into new asset classes.
Richard Schwartz – The Trade
Broadridge Financial Solutions has completed the first fixed income trades for its sponsored General Collateral (GC) service via its post-trade processing solution in conjunction with DTCC and BNY Mellon.
TORA expands into the UK with London office and new senior hires; Hires will be responsible for driving new client acquisition for TORA’s software solutions as well as helping provide software and workflow solutions to global institutional investors.
Wesley Bray – The Trade
Trading systems provider TORA has expanded its presence in the UK with a new London office as well as two new senior hires. Peter Rank and Chris Hopton join TORA as sales manager for Europe, and professional services manager, respectively.
HSBC rolls out analytics to monitor in-flight FX algo performance; eRisk Analytics portal within HSBC’s single dealer platform Evolve will provide traders with key metrics to monitor FX algo performance.
Hayley McDowell – The Trade
HSBC has launched an interactive analytics portal within its single dealer platform that aims to help traders monitor the execution performance of FX algorithms in-flight. Known as eRisk Analytics, the portal was designed amid increasing complexity and fragmentation of FX markets. It will offer various key metrics to clients, including volatility, volume, market depth, spread and news events across deliverable, frontier and NDF currency pairs within the Evolve trading platform.
The Zero-Trust Approach to Managing Cyber Risk Explained; Biden administration’s cybersecurity mandate pushes federal agencies to trust no one in their computer networks
David Uberti – WSJ
The Biden administration is pushing federal agencies to adopt a cybersecurity philosophy that has become increasingly popular in the private sector amid a growing shift toward cloud computing and a surge in cyberattacks: trust nothing.
Apple Rushes Out Emergency Update to Stop ‘No Click’ Spyware
Davide Scigliuzzo, William Turton, and Mark Gurman – Bloomberg
Apple Inc. said it patched a security flaw in its Messages app after security researchers determined that Israel-based NSO Group used it to “exploit and infect” the latest devices with spyware. The flaw, disclosed Monday by Citizen Lab, allowed a hacker using NSO’s Pegasus malware to gain access to a device owned by an unnamed Saudi activist, according to security researchers.
Aligning Cloud Security to the Cybersecurity Exec Order
Janet Matsuda – Security Boulevard
It’s encouraging to see alignment between the Biden administration and industry around the critical nature of cybersecurity and see pragmatic steps forward. The White House’s issuance of an executive order (EO) on improving the nation’s cybersecurity and last month’s follow-up meeting with industry leaders are encouraging milestones. The move to cloud and containers brings a generational shift in application development methodologies, creating a unique opportunity to reduce risk by getting security right.
Orgs Lack Confidence in Long-Term Hybrid Work Security
Nathan Eddy – Security Boulevard
Just one in five companies are fully confident their infrastructure security can support long-term remote work, according to a survey of 200 North American business leaders conducted by the research firm Pulse on behalf of Sungard Availability Services.
Zero Trust Requires Cloud Data Security with Integrated Continuous Endpoint Risk Assessment
The Hacker News
Security perimeters have become obsolete as people use mobile devices and cloud applications to work from anywhere. Zero Trust deployment — moving all your apps and data to the cloud and assuming no user or device is trustworthy until proven otherwise in order to gain access — has been rapidly introduced as a result of the pandemic. However, most attempts at achieving Zero Trust access today are a patchwork of disparate products from different vendors connected to virtual private networks (VPN), with rudimentary on-off access controls based on limited visibility.
DeFiChain to Offer Tokenized Versions of Apple, Tesla
Joanna Ossinger – Bloomberg
The Nasdaq stock exchange will be among the companies delivering price feeds to a service offering tokenized stocks. Nasdaq’s feed, along with those of Finnhub, will power services on DeFiChain, a native decentralized finance blockchain for the Bitcoin network devoted to monetary applications and services, according to a statement from the blockchain’s community group.
Billionaire Steve Cohen Helps NFT Firm Reach $333 Million Valuation
Joanna Ossinger and Emily Chang – Bloomberg
The non-fungible token company, Recur, has reached a $333 million valuation after a funding round led by an investment platform backed by billionaire Steve Cohen’s family office.
This crypto looking to solve the SEC crackdown is up 6,000% in 2021
Zack Guzman – Yahoo Finance
The U.S. Securities and Exchange Commission (SEC) signaled a big change in policing cryptocurrencies last week, as one of the largest crypto exchanges in the world revealed it was blocked from launching a new crypto lending product.
Interactive Brokers Introduces Crypto Trading
Interactive Brokers Group, a global brokerage firm, announces its launch of cryptocurrency trading, enabling clients to trade and custody Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) via Paxos Trust Company.
Steven Cohen to Invest in Crypto Quant Trading Firm; New firm, called Radkl, to be led by partners of high-speed trading firm GTS
Alexander Osipovich – WSJ
Billionaire Steven A. Cohen is set to invest in a new cryptocurrency trading firm, the latest bet on the digital-asset markets by a prominent Wall Street investor. The hedge-fund manager and owner of the New York Mets agreed to make an initial investment in Radkl, a quantitative-trading firm specializing in digital assets, according to the firm’s executives and a spokeswoman for Mr. Cohen.
Litecoin whipsaws after ‘illegitimate press release’ on Walmart tie-up; GlobeNewswire spikes announcement that sent cryptocurrency price up by a third
Matthew Rocco and Eric Platt – FT
The price of litecoin momentarily soared on Monday morning after a press release falsely claimed Walmart would allow online shoppers to pay for purchases using the cryptocurrency.
SALT Deduction Cap to Get ‘Meaningful’ Fix, Democrats Say
Billy House – Bloomberg
Lifting cap on state and local deductions not in early draft; Array of Democrats say they cannot support bill without that
House Democrats said they will “undo” the $10,000 cap on the federal deduction for state and local taxes, after the Ways and Means Committee didn’t address the tax break in a package of proposals released Monday.
City of London Staff Return in Largest Numbers Since March 2020
Neil Callanan – Bloomberg
More people are back at their desks in the City of London than at any time since the pandemic forced the government to impose a lockdown 18 month ago.
Capital Gains Tax Rate Set at 25% in House Democrats’ Plan
Laura Davison, Allyson Versprille, and Erik Wasson – Bloomberg
Rate would rise from 20% under House panel’s proposal; Biden had wanted to boost rate to 39.6% for highest earners
House Democrats presented a smaller-scale overhaul of the way investments are taxed than President Joe Biden proposed earlier this year, highlighting the political challenge in enacting higher levies ahead of next year’s midterm elections.
Former UK hedge fund partner plots return of Trump-era social network Parler; George Farmer seeks to revive ‘free speech’ app that imploded after US Capitol riots
Hannah Murphy – FT
Parler, the “free speech” social network that attracted millions of Donald Trump’s supporters in the run-up to last year’s US election, was on the ropes in January. In the wake of the Capitol riots that followed the vote, the app, whose lead investor is the Republican donor Rebekah Mercer, was removed by Apple and Google from their app stores and denied hosting services by Amazon. Even its public relations company quit. Weeks later, its chief executive, John Matze, was fired after disagreements with Mercer.
U.S., Europe Seek to End Export Financing for Coal; Wealthy nations move to end support for a fuel that is one of the world’s biggest sources of greenhouse gases
Matthew Dalton – WSJ
The U.S., the European Union, South Korea and other wealthy nations are moving to forbid their export-financing agencies from supporting coal-fired power projects overseas, in an effort to end government support for a fuel that is one of the world’s biggest sources of greenhouse gases.
As India’s Lethal Covid Wave Neared, Politics Overrode Science; The country’s top science agency tailored its findings to fit Prime Minister Narendra Modi’s optimistic narrative despite a looming crisis, researchers say.
Karan Deep Singh – NY Times
The forecast was mathematically based, government-approved and deeply, tragically wrong. In September 2020, eight months before a deadly Covid-19 second wave struck India, government-appointed scientists downplayed the possibility of a new outbreak. Previous infections and early lockdown efforts had tamed the spread, the scientists wrote in a study that was widely covered by the Indian news media after it was released last year.
House Democrats’ Plan to Tax the Rich Leaves Vast Fortunes Unscathed; The House Ways and Means Committee’s proposal to pay for trillions in social spending leaves wealth gains and inheritances largely alone. It focuses instead on a more traditional target: income.
Jonathan Weisman and Jim Tankersley – NY Times
House Democrats on Monday presented a plan to pay for their expansive social policy and climate change package by raising taxes by more than $2 trillion, largely on wealthy individuals and profitable corporations.
Melbourne man charged with insider trading
Vaughan Garfield Bowen, of Brighton, Victoria, today appeared via his legal representative in the Melbourne Magistrates’ Court charged with two counts of insider trading. The charges relate to Mr Bowen’s disposal of 5,617,554 shares in Vocus Group Limited (Vocus) on 4 June 2019.
Asset Management Advisory Committee
Securities and Exchange Commission.
Notice is being provided that the Securities and Exchange Commission Asset Management Advisory Committee (“AMAC”) will hold a public meeting on September 27, 2021, by remote means. The meeting will begin at 9:30 a.m. (ET) and will be open to the public via webcast on the Commission’s website at www.sec.gov.
Are You Staying Cyber Safe? 7 Tips for Securing Your Financial Accounts
As many of us spend more and more time online, cyber criminals continue to lurk in the background, devising plans to steal your personal information. While financial institutions have an obligation to safeguard your personal financial information, you have an important role to play. This is especially true as FINRA has received an increasing number of reports regarding customer account takeover incidents and theft of personal financial information.
Investing and Trading
The SPAC Bubble Is Burst. It May Be Time to Invest; While the SPAC boom has fizzled, blank-check vehicles are now trading at deep enough discounts for even skeptical investors to consider arbitrage trades
By Jon Sindreu – WSJ
Interest in special-purpose acquisition companies has faded fast. As old investors mourn their losses, though, it may be time for new ones to raid the spoils. Only five SPACs priced their shares for a public-market debut in August, followed by a single one thus far in September, FactSet figures show. This compares with a peak of 141 in February.
Environmental, Social and Corporate Governance
BNP Paribas survey shows ESG integration is maturing and institutional investors are at different stages of readiness for net zero
A BNP Paribas survey of 356 asset owners, official institutions, and asset managers, shows that ESG integration is maturing, with a growing number of investors allocating more than 75% of their portfolio to ESG and know-how increasingly embedded throughout organisations. However, institutional investors are at different stages of readiness for net zero.
Gabon’s Climate Law Brings It Closer to Carbon Trade Ambition
Leanne de Bassompierre – Bloomberg
World’s second-most forested country adopted the law Monday; Gabon is looking to raise revenue from protecting its forests
Gabon has passed legislation that will pave the way for the world’s second most-forested country to begin trade in carbon credits.
Kenya’s Geothermal Utility to Sell Carbon Credits By Year-End
Bella Genga – Bloomberg
Kenya Electricity Generating Co., Africa’s biggest geothermal electricity producer, plans to auction an equivalent of 4.62 million tons of carbon emissions it earned over the past 18 months.
We Pay to Treat Waste Water, Why Not Waste Carbon?; Researchers propose that oil and gas companies should have to put the carbon they extract back underground
Akshat Rathi – Bloomberg
My monthly water bill is about £20 ($28). Half of it pays for the water that’s piped into my London flat; the other half covers the cost of treating the wastewater from my property.
BMO Harris joins wave of banks closing branches; Chicago’s second-largest bank by deposits will shutter nine locations here, 5% of its footprint, in early December.
Steve Daniels – Crain’s Chicago Business
BMO Harris is the latest large Chicago bank to close multiple branches. Chicago’s second-largest bank by deposits will shutter nine locations in early December, the bank confirms. BMO Harris thus far hadn’t followed fellow retail goliaths like JPMorgan Chase and Bank of America in significantly pruning its local footprint.
Broker Peel Hunt to float after pandemic boom in trading; Employee-owned company plans to list on London’s Aim this month to support expansion
Joshua Oliver and Oliver Ralph – FT
London broker Peel Hunt is to go public following a boom in trading and dealmaking during the pandemic. The company, which caters to small and mid-cap companies, said on Tuesday that the initial public offering would take place later this month on London’s Aim and would support its expansion plans, including a push into Europe.
China Should Curb Tech Monopolies to Ensure Growth, Says PBOC Advisor
Tom Hancock – Bloomberg
Beijing should strengthen efforts to control the expansion of technology companies because the development of internet platforms leads to a “winner takes all” dynamic, which increases inequality and slows economic growth, an advisor to China’s central bank said.
U.K. Delays Brexit Border Checks on EU Food as Shortages Hit
Joe Mayes – Bloomberg
New customs controls due to start October, January postponed; Pandemic and effects from Brexit have caused gaps in supplies
The U.K. delayed the introduction of new post-Brexit border checks on food from the European Union, as retailers battle a supply chain crisis fueled by the pandemic and the effects of quitting the EU.
Russia’s Oil Output Jumps as Effect of Gazprom Fire Wanes
Dina Khrennikova – Bloomberg
Data show Russia pumped 10.68 million b/d from Sept. 1-13; Gazprom’s condensate output may be recovering in West Siberia
Russia’s crude oil and condensate output jumped in the first weeks of September as some of the nation’s key producers ramped up in line with the OPEC+ deal and Gazprom PJSC recovered from a fire at a facility in West Siberia.
EU’s Latest Bond Sale Racks Up Another $100 Billion Orderbook
James Hirai and Jill Ward – Bloomberg
EU is seeking to raise up to 9 billion euros from the offering; Demand slightly lower than seen for 5-year sale in June
The European Union returned to the bond market on Tuesday for a seven-year debt sale, pulling in another huge orderbook.
EU Seeks U.S. Alliance on Investor Screening to Confront China
Alberto Nardelli – Bloomberg
Officials see Pittsburgh talks as chance for joint approach; Threat of China is spurring EU, U.S. to cooperate more closely
The European Union will aim to agree on a framework for working with the U.S. to screen potentially hostile foreign investments when officials meet in Pittsburgh later this month, according to a person familiar with the preparations for the talks.
Oil Grades Favored by China’s Independent Refiners Get a Boost
Alfred Cang and Sharon Cho – Bloomberg
Spot differentials of Russian ESPO, Brazilian varieties are up; There are signs authorities about to release more import quota
Oil grades popular with China’s independent refiners are getting a boost in the physical market amid speculation authorities are about to allocate more import quota. Spot differentials for Russia’s ESPO crude are up by at least $1 a barrel from last month, while Brazilian varieties such as Tupi and Iracema are also fetching higher prices than in August, said traders who asked not to be named.
Hungary’s Eurobond Plan Suggests EU Dispute Will Drag On
Veronika Gulyas and Lyubov Pronina – Bloomberg
Country seeks to offer as many as four U.S. dollar, euro bonds; Hungary more than doubled its FX bond issuance plan for 2021
Hungary plans to offer a range of dollar and euro bonds to shore up its budget as it’s facing a potential delay in accessing European Union funds because of a feud with the bloc over democratic values.
Indonesia Joins Rush to Dollar Bond Market to Beat Rising Rates
Harry Suhartono and Claire Jiao – Bloomberg
Country is spending billions to boost pandemic-ravaged economy; Rare tap of 10-year note to improve liquidity: Maybank Eng Kim
Indonesia’s government is marketing a new 40-year dollar bond, and at the same time seeking to increase its existing 10-year notes as it joins the rush of borrowers looking to lock in funds before rates rise.
ECB’s Jens Weidmann Says Banks Shouldn’t Be Cosseted in Digital Money Plans
Carolynn Look – Bloomberg
CBDC could weaken bank funding source by substituting deposits; Banks shouldn’t be treated as endangered species, he says
Central banks planning to issue digital versions of their currencies mustn’t treat commercial financial institutions as “endangered species” that can’t handle competition, according to European Central Bank Governing Council member Jens Weidmann.
A crucial change is needed to improve corporate governance in Japan; Reporting requirements hinder engagement between shareholders and companies
Nicholas Benes – FT
Ever since Japan brought in codes of conduct for companies and shareholders, three words have echoed around the corporate landscape — “engagement”, “taiwa” (discussion) and “stewardship”.
For This Vermont Hotel Near Dartmouth, Every Call a Cancellation; The Norwich Inn saw bookings dry up when college students went home. Its management made upgrades to prepare for their return.
Isabella Simonetti – Bloomberg
The Norwich Inn, across the Connecticut River from Dartmouth College, has seen its share of ebbs and flows in the past two centuries, but nothing could prepare the management team for the implosion caused by the coronavirus pandemic. Normally a favorite with students, alumni, and visiting parents and professors, the inn was all but forced to close down when Dartmouth conducted classes mainly online last school year. Now Dartmouth, like other schools, has brought students back in person this September, offering the inn a chance to rebound. Innkeeper Dave Burtonbush sat down in July to talk about how the business survived the crisis and his outlook. The interview has been edited for clarity and length.
Curtains Up! How Broadway Is Coming Back From Its Longest Shutdown; Determined to reopen, crews are dusting off spotlights, dancers are relearning steps, and everyone is testing, testing, testing as theater seeks to rebound from the devastating pandemic.
Michael Paulson – NY Times
Broadway is back. Or so it hopes. A year and a half after the coronavirus pandemic forced all 41 theaters to go dark, silencing a symbol of New York and throwing thousands out of work, some of the industry’s biggest and best known shows are resuming performances on Tuesday.