Bitcoin Creator Satoshi Nakamoto Could Be Unmasked at Florida Trial

Nov 15, 2021

First Read

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

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Hits & Takes
John Lothian & JLN Staff

The Financial Times published a special report titled “Special Report Risk Management: Exchanges, Trading and Clearing” – Regulators considering plans to push more central clearing of all trades in US government bonds. Plus: European ETF trades remain off-exchange; bourses under pressure to open 24/7; crypto exchanges give rise to conflict disquiet

The stories included a special appearance by former FT Trading Room founder Jeremy Grant, who is now a freelance journalist. Here are the stories:

Reform of US bond trading in balance – After the Covid turmoil, regulators are weighing a move to make the clearing of Treasuries mandatory
Crypto exchanges’ multiple roles raise conflict worries – Platforms that provide custody, lending and borrowing services — as well as trading — look more like brokers
Crypto trading puts pressure on bourses to open all hours – Ability to buy and sell digital assets 24/7 is driving calls for weekend trading of forex and shares
Investors question trading of ETFs off-exchange – In Europe, most transactions are over-the-counter, giving retail clients less control
Trading venues need to spot immediate and emerging threats – Investment is essential in order to keep up with cyber attacks and competing technologies
Exchanges sign up to boost climate funding and disclosure – Bourses around the world seek a bigger role in helping companies to decarbonise

The Chicago Fed is holding a “High School Fed Challenge,” an academic competition that provides students in grades 9-12 the opportunity to study the U.S. economy through the lens of the U.S. central bank. The program is designed to encourage students to learn more about economics and the work of the Federal Open Market Committee. The challenge offers students an enriching experience to think critically about the economy, construct an argument and present their well-crafted research findings to Federal Reserve Bank economists. More details are available HERE.

RSM US announced that Brian Becker will become the next managing partner and CEO, replacing Joe Adams, on August 31, 2022. Becker has been leading the RSM consulting business, which has more than doubled its revenues during his tenure. Adams has been managing partner since 2011.

DRW has published a new video on YouTube to tell the story of the DRW intern to full-time experience.

CQG is celebrating its 40th anniversary. It was founded in 1981. In 1981, I was still in college.

If you don’t want your employer to contact you on the weekends, get a job in Portugal. —
FT

ICAP will hold its annual ‘virtual’ Charity Day on Thursday, December 10. Each year, ICAP Charity Day raises money for charities across the globe, with 100% of the revenues and commissions generated on the day donated to a variety of worthy causes. This year’s ICAP Charity Day will be at its London headquarters for the first time. Since its inception in 1992, ICAP Charity Day has raised over £150 million, and supported around 2,600 charitable projects around the world. — TP ICAP

DePaul University’s 8th Annual Cyber Risk Conference early bird discount ends on November 22. The conference, which you can attend in person or virtually, will be held on November 30, 2021. The title of the conference is “Cyber Defense – Stronger Together.” For more details and to register, click HERE.

The number of workers in the U.S. who quit their jobs in October was a record number, the NY Times reported.

Bloomberg published a negative story on Bakkt titled, “Ballyhooed Crypto Venture Bakkt Shows Limited Growth Three Years Later.” — Bloomberg

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

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

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The FIA has released its October volume numbers, reporting that Worldwide volume of exchange-traded derivatives was 5.54 billion contracts in the month of October, making it the third highest level recorded. The October total was down 1.7% from the previous month but up 37.2% from October 2020.

On a year-to-date basis, volume in the first 10 months of the year was 50.27 billion contracts, up 33.2% from the first 10 months of 2020. The majority of that increase came from equity index and individual equity contracts.

The FIA also noted a format change: “A new tab has been included in this report and will appear in all subsequent reports. The new tab, called Raw Data – Alternative, offers more detailed categorizations of individual contracts. Each contract now has four fields for categorization: group, category, sub-category and green status, which indicates whether or not a contract is an ESG index.”~SR

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FIA Expo Video 2021: ICE Exec Says Pandemic Volatility Offers Lessons For Clearinghouses
JohnLothianNews.com

The intense market volatility seen during the beginning of the global pandemic, particularly in April and May, underscored both the interconnectedness of the markets and the fact that not every participant is at the same level, said Chris Edmonds, global head of closing and risk at the Intercontinental Exchange, Inc.

In a video interview with John Lothian News at FIA Expo 2021 following a roundtable on operational efficiencies, Edmonds said it became clear during COVID-19 and the abrupt move to working at home that more efficient ways to share information sooner are needed. That would help ensure the reconciliation process, the amount of margin being paid on behalf of the client, is consistent with the amount of risk that the clearinghouse holds.

Watch the video »

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Tesla Trade Spurs Early-Week Stock Selling; Inflation Index Jumps; Options Volume Continues to Set Records – The Spread – November 12, 2021
JohnLothianNews.com

– Tesla CEO Elon Musk sells shares, briefly captivates the equity market; Higher inflation news chills Treasury trading; Options volume continues to set records;
– John’s Take profiles Stable, the winning innovator at FIA Expo 2021;
– EQDerivatives’ Russell Rhoads explains the Nasdaq-100 Volatility Index in the Term of the Week.

Watch the video »

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The Chip That Changed the World; Most of the wealth created since 1971 is a result of Intel’s 4004 microprocessor.
Andy Kessler – WSJ
The world changed on Nov. 15, 1971, and hardly anyone noticed. It is the 50th anniversary of the launch of the Intel 4004 microprocessor, a computer carved onto silicon, an element as plentiful on earth as sand on a beach. Microprocessors unchained computers from air-conditioned rooms and freed computing power to go wherever it is needed most. Life has improved exponentially since.
/on.wsj.com/3DmeAcw

*****Really interesting story about how the microprocessor chip changed the world.~JJL

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UK university pensions suffer from misplaced prudence; It is a fallacy to suppose that a fund could be insured against the direst outcomes
Martin Wolf – FT
UK universities face a fresh wave of strikes over pensions. That was the indication from reports warning that the students who have recently returned to university may face more disturbance from striking academics. It is easy to condemn them, but I do not. They are the victims of unduly risk-averse decision making at the Universities Superannuation Scheme, under the influence of misconceived regulation.
/on.ft.com/3Cb9DBX

***** I really like this story. You can try to manage risk, but there are some things outside of our ability to do so. ~JJL

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Workplace monitoring has boomed since pandemic, report finds
Lindsay Clark – The Register
An explosion in workplace monitoring during the pandemic – in part supported by common software tools from global vendors – threatens to erode trust in employers and employees’ commitment to work, according to a European Commission research paper. The study from the Joint Research Councils warns that excessive monitoring has negative psycho-social consequences including increased labour resistance, stress and turnover propensity, along with decreased job satisfaction and organisational commitment.
/bit.ly/3oyNnxh

***** I knew my team was going to include this story, I just can’t tell you how I knew.~JJL

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Get-Rich-Quick Schemes That Target Young People Online Proliferate; Many scams can seem surprisingly legitimate to those who spend a lot of time on social-media platforms
Svati Kirsten Narula – WSJ
LaNiah Moon had just moved out of her college dorm and into her parents’ house in February when she received a direct message on Instagram from a woman named Maya, offering her an opportunity to “make some quick cash.” Ms. Moon, 22 years old, had lost her on-campus job the year before when the Covid-19 pandemic began, and was taking classes remotely from home in Chicago while also looking for a job. She says Maya told her that if she gave her $150, she could “flip” it into $1,500.
/on.wsj.com/3njHTXy

*****Use this philosophy when investigating investments. This is journalism 101. If your mother says she loves you, check it out.~JJL

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Friday’s Top Three
Our top story Friday was How SARS-CoV-2 in American deer could alter the course of the global pandemic, from NPR. Second was a John Lothian News video, FIA Expo 2021 Video: Trading Technologies’ Execs Say Deal Was Good For Industry, an interview with Tim Geannopulos, chairman and CEO of Trading Technologies, and Keith Todd, incoming CEO of TT. And third was Stéphane Boujnah: the dealmaker bent on building an EU capital markets empire, a Financial Times profile of the CEO of Euronext.

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MarketsWiki Stats
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MarketsWiki Statistics

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Lead Stories

Bitcoin Creator Satoshi Nakamoto Could Be Unmasked at Florida Trial; Lawsuit over a $64 billion cache looks beyond the pseudonym to solve the mystery of who created the cryptocurrency
Paul Vigna – WSJ
A seemingly run-of-the-mill trial is playing out in Florida: The family of a deceased man is suing his former business partner over control of their partnership’s assets. In this case, the assets in question are a cache of about one million bitcoins, equivalent to around $64 billion today, belonging to bitcoin’s creator, the pseudonymous Satoshi Nakamoto. The family of the dead man says he and his business partner together were Nakamoto, and thus the family is entitled to half of the fortune.
/on.wsj.com/30n8Scr

Bank of England says won’t ‘politicise’ dealings with foreign clearing houses
Huw Jones – Reuters
The Bank of England will not ‘politicise’ how it supervises foreign clearing houses with ‘tit-for-tat’ responses to whatever the European Union decides, a senior BoE official said on Monday.
/reut.rs/3cayICG

Hedge Funds Have Turned Lawsuit Bets Into a $39 Billion Industry
Ellen Milligan and Katharine Gemmell – Bloomberg
Hedge funds, private equity and sovereign wealth funds are piling billions into the outcome of high stakes court cases at a faster rate than ever before. Litigation finance — the practice of paying legal fees up front with a promise to share in any eventual payout — soared to a $39 billion global industry in 2019, according to law firm Brown Rudnick. It’s being used to fund everything from Russian oligarch’s divorces to take on banks in fraud suits. And now regulators are asking whether there’s enough oversight.
/yhoo.it/3ce2re4

Exchanges sign up to boost climate funding and disclosure; Bourses around the world seek a bigger role in helping companies to decarbonise
Jeremy Grant – FT
When the 450 institutions that make up the Glasgow Financial Alliance for Net Zero (Gfanz) told this month’s COP26 climate conference they could deliver $100tn to help economies transition to green energy, attention was focused on the banks, fund managers, and insurers that had signed up.
/on.ft.com/30s224L

S&P Global Wins U.S. Antitrust Approval for IHS Markit Deal
David McLaughlin – Bloomberg
S&P Global Inc. won U.S. antitrust approval to buy IHS Markit Ltd. to create a financial data giant spanning everything from bond ratings and commodities prices to tracking the trade flows across the world’s oceans.
/bloom.bg/3cgq2e6

Beijing Stock Exchange Launches With Focus on ‘Little Giants’
Bloomberg News
For years, Chinese leaders have been fighting an uphill battle to drive funding for small business. They are counting on Beijing’s first-ever stock exchange to get the job done.
/yhoo.it/3c9mh9Z

Dubai’s IPO Gambit Adds $2.3 Billion to Bourse Operator’s Value
Adveith Nair – Bloomberg
Dubai Financial Market’s value has doubled to $4.6b this month; Surge follows Dubai’s aggressive moves to enhance liquidity
Dubai’s aggressive moves to grab a piece of the red hot Middle Eastern IPO market have helped double the value of its exchange operator over two weeks. While Abu Dhabi and Riyadh drew in orders worth billions of dollars from marquee listings, Dubai was left behind. The new head of the city’s financial market has announced a series of steps this month to help reverse that.
/bloom.bg/3cb6F5X

The UN climate process is designed to fail; Global agreements cannot deliver change fast enough, so powerful nations will start looking for alternatives
Gideon Rachman – FT
In a way, Boris Johnson was the perfect host for COP26. The British prime minister specialises in groundless optimism and empty pledges. The Glasgow climate summit produced plenty of both.
/on.ft.com/3neZ4d4

COP26 Climate Deal Shows Fragility of New Emissions-Cutting Pledge; The new Glasgow pact calls for countries to bolster commitments again next year, but the U.S. says it likely won’t do so
Matthew Dalton and Timothy Puko – WSJ
U.S. climate envoy John Kerry helped win support at the United Nations summit for a deal this weekend that aims to accelerate emissions-cutting plans and asks countries to strengthen them again next year.
/on.wsj.com/30rM4HR

COP26 Opens Path to International Carbon Trading; U.N.-certified carbon credit could be used by regulated markets and standardize more informal ones
Sarah McFarlane and Matthew Dalton – WSJ
International carbon markets got a shot in the arm in Glasgow on Saturday after governments agreed on long-stalled rules for how countries, and companies, can trade carbon-emissions credits across borders.
/on.wsj.com/3CjcNUu

COP26 global carbon market rules pave way for emissions credits boom; UN climate summit establishes framework for trading after six years of debate
Camilla Hodgson – FT
Rules for a new global carbon market were put into place by the UN climate summit after six years in the making, paving the way for a boom in the trading of emissions credits.
/on.ft.com/3Dk485i

COP26 has achieved more than expected but less than hoped; More ambitious climate plans are vital at the next conference a year from now
The editorial board – FT
COP26 was always going to struggle to meet the world’s expectations. The conference has not, in the end, shifted the world decisively on to a path that will save it from the worst ravages of climate change, though events before it began had already made that an unrealistic hope. This COP has nonetheless left the door open, if only an inch, to restraining the overall rise in temperature to 1.5C — provided countries heed a call to come back a year from now with more ambitious carbon reduction plans for the rest of what is a pivotal decade.
/on.ft.com/3DfpAso

Brian Becker to Succeed Joe Adams as RSM US LLP Managing Partner & CEO on August 31, 2022
RSM US LLP
RSM US LLP (“RSM”) – the nation’s leading provider of audit, tax and consulting services focused on the middle market – is pleased to announce that Brian Becker will succeed Joe Adams as Managing Partner & CEO of the firm effective August 31, 2022.
/rsm.us/325RYzz

SEC Says No to a Spot Bitcoin ETF Because the Market Can Still Be Manipulated
Daren Fonda – Barron’s
Investors may have to wait a lot longer for an exchange-traded fund that owns Bitcoin directly. The Securities and Exchange Commission on Friday rejected an application by fund sponsor VanEck to launch a Bitcoin Trust ETF that aimed to own the cryptocurrency directly.
/bit.ly/3kDd3HY

The Crypto Capital of the World; It has to be somewhere. Why not Ukraine?
David Segal and Ivan Nechepurenko – WSJ
KYIV, Ukraine — A buccaneering 37-year-old educated in a British private school, Michael Chobanian is fluent both in English and the folkways of Ukraine, which he regards as a largely lawless frontier and which he likes to traverse in his black Ferrari 612. He is the founder of Kuna, one of Eastern Europe’s first cryptocurrency exchanges. To him, his native country is a terrific place to run a business, as long as you have the nerve to navigate a system rife with corruption.
/nyti.ms/3Di5s8X

The Collapse of GE’s House of Debt Was 130 Years Coming; The credit conditions that led to the Gilded Age conglomerate’s rise have flipped around, and not even Jack Welch’s shareholder audacity could hide the underlying reality forever.
David Fickling – Bloomberg
Genius, the inventor Thomas Edison once said, is 1% inspiration and 99% perspiration. He might have added: In business, it’s also almost 100% commercialization.
/bloom.bg/3nhJz3T

One month to go: ICAP to hold annual global ‘virtual’ Charity Day on Thursday 10 December
TP ICAP
ICAP, part of TP ICAP group, a leading provider of market infrastructure, is pleased to announce that its 29th annual global Charity Day will be held on Thursday 9 December 2021. Each year, ICAP Charity Day raises money for charities across the globe, with 100% of the revenues and commissions generated on the day donated to a variety of worthy causes. This year’s ICAP Charity Day, will see charities, celebrity patrons and ambassadors return to the broking floor to raise awareness and support ICAP’s brokers while they close deals, as our new London headquarters host the event for the first time. Since its inception in 1992, ICAP Charity Day has raised over £150 million, and supported around 2,600 charitable projects around the world.
/bit.ly/30kZHJ0

I fought the Fed and the Fed won
Reuters
‘Don’t fight the Fed’, goes the old saying. Investors tempted to challenge the U.S. Federal Reserve’s narrative on transitory inflation might want to read Russell Clark’s final letter to investors while listening to the rock anthem ‘I fought the law’. After another monthly loss at the hedge fund which bears his name, Clark decided to wind up his fund, deploring that global markets are increasingly driven by politics, notably China’s, for which he admits having no particular edge.
/yhoo.it/3cflRPu

Coronavirus

Covid-19 Cases Rise in Pockets of North and West, Halting Delta Variant’s Decline in U.S.; New cases are climbing in the Upper Midwest, Southwest and parts of Northeast ahead of holiday travel
Jon Kamp and Kris Maher – WSJ
Covid-19 cases are climbing in places like the upper Midwest, Southwest and parts of the Northeast, hindering the nation’s progress in ending a surge triggered by the highly contagious Delta variant of the coronavirus. Nationally, the seven-day average of new cases appears to be edging back up after hovering just above 70,000 for several weeks, according to data from Johns Hopkins University, halting what had been a decline from the Delta-fueled peak that began in September. While the Southeast cools off from its summer surge, other regions are under pressure, including places where colder weather has brought people back indoors where the virus can more easily spread.
/on.wsj.com/3wP6Xcr

China’s Wildlife Is a Pandemic ‘Waiting to Happen,’ Study Finds
Jason Gale – Bloomberg
Wildlife survey finds 18 high-risk viruses for humans, animals; Civets shown to carry highest number of worrisome pathogens
Wildlife species sold in wet markets in China were linked to the emergence of SARS and Covid-19. Now a comprehensive survey of viral pathogens has found they harbor a range of diseases threatening humans and other animals.
/bloom.bg/3c8tI1i

3 Snow Leopards With Covid-19 Die At Lincoln Children’s Zoo
Associated Press
Three snow leopards have died at the Lincoln Children’s Zoo in Nebraska of complications from COVID-19. The zoo made the announcement in a Facebook post Friday, describing the deaths of the three leopards — named Ranney, Everest, and Makalu— as “truly heartbreaking.”
/bloom.bg/3ccpHc8

Unvaccinated Austrians Locked Down to Stem Surge: Virus Update
Bloomberg News
Austria is putting unvaccinated people under lockdown from Monday in a dramatic move to stem the spread of the virus. New infections spread to almost 2 million in Europe last week, the most since the pandemic started.
/bloom.bg/3wIlfLP

Pfizer Fights to Control Secret of $36 Billion Covid Vaccine Recipe; The high-stakes dispute over price, profit and control that is shaping the pandemic endgame.
Stephanie Baker and Vernon Silver – Bloomberg
Two of the most powerful figures in the fight against the pandemic faced off in July during a closed-door virtual summit on how to get more vaccines to the world’s poorest people.
/bloom.bg/3DkNeUa

UK expands Covid booster jab programme to 40 to 49-year-olds; Children aged 16 and 17 will also be eligible for a second dose to increase protection against infection
Jasmine Cameron-Chileshe and Oliver Barnes – FT
The UK has expanded eligibility for Covid-19 booster shots to people in their 40s in an attempt to stave off waning immunity and reduce the risk of the NHS being overwhelmed this winter.
/on.ft.com/3DkOiaC

Couples who share beds but not Covid may hold clue to ‘invincibility’; Analysing the genes of those who appear to be naturally resistant could lead to antiviral treatments
Anjana Ahuja – FT
Evangelos Andreakos is wary of answering his phone. The immunologist, at the Biomedical Research Foundation of the Academy of Athens, launched a study last month to find people who are genetically immune to Covid-19 — and was besieged: “I got hundreds of emails and phone calls — from Greece, of course, but also the US, Brazil, Mexico, Russia and even India.”
/on.ft.com/3wPecRF

Exchanges, OTC and Clearing

Qatar Stock Exchange: MSCI Semi-Annual Index Review Result
Mondovisione
MSCI announced on 12 November 2021, the results of the Semi-Annual Index Review. For the MSCI Qatar Indices the outcome of the review is as follows:
/bit.ly/3Der7yK

NYSE American Options: *Reminder* CAT 2D Changes Live on November 15, 2021
NYSE
As previously announced, on November 15, 2021, NYSE American Options will be updating the Trade Official Timestamp for Industry Member Options Trade (“MOOT”) events on TNT Notification messages sent to Market Makers, pursuant to FINRA CAT Production Phase 2d reporting requirements (“CAT 2D”), which is anticipated to Go-Live in December.
/bit.ly/3wL9OD7

Beijing Stock Exchange Launches With Some Big First-Day Gains; China hopes venue will channel funds into innovative smaller companies, as it tightens its grip on companies seeking listings overseas
Anniek Bao – WSJ
The Beijing Stock Exchange opened for trading Monday, marking the debut of a venue that China hopes will channel funds into innovative smaller companies, as it tightens its grip on companies seeking listings overseas.
/on.wsj.com/3wLmYzO

MEMX asks SEC to reject ‘deeply flawed’ proposed changes to US equities data fees; According to the members exchange, the proposed changes to fees are subject to a conflict of interest and would further cement incumbent venues monopoly over market data.
Annabel Smith – The Trade
MEMX’s head of market structure, Adrian Griffiths, has asked the Securities and Exchanges Commission (SEC) to disapprove amendments to securities information processor (SIP) data fees proposed by various SIP operating committees.
/bit.ly/3c5qhZ9

Euronext announces its financial calendar for 2022
Euronext
Euronext, the leading pan-European exchange in the Eurozone, today announced its financial calendar for 2022, set as follows:
/bit.ly/3neXMPd

— Performance Bond Requirements: Interest Rate Margins – Effective November 15, 2021 — CME
— Availability of an additional Three-Month Eurodollar futures and Three-Month SOFR futures intercommodity spread (SED) on CME Globex – Effective January 10, 2022 — CME
— Dress Rehearsal 3 for LIBOR to RFR OIS Conversion of OTC CHF, JPY, and GBP Interest Rate Swaps – Effective November 15, 2021 — CME
— Modifications to the Schedule of Acceptable Performance Bond – Effective November 24, 2021 — CME

Fintech

IBM says its new quantum chip can’t be simulated by classic supercomputers; Eagle features 127 qubits.
Igor Bonifacic – Engadget
IBM claims it has taken a major step toward practical quantum computation. On Monday, the company unveiled Eagle, a 127 qubit quantum processor. IBM claims it’s the first such processor that can’t be simulated by a classical supercomputer. To make sense of what that means, the company says to simulate Eagle you would need more classical bits than there are atoms in every human being on the planet. IBM is crediting the breakthrough to a new design that puts the processor’s control components on multiple physical levels while the qubits are located on a single layer. It’s a design the company says allows for a significant increase in computing power.
/engt.co/3DlKZjv

ESG asset manager taps Symphony, FinTech Studios for thematic ‘mini-Bloomberg’; Sycomore Asset Management is preparing to roll out an expansion of how it uses the vendors’ combined platforms to be able to create and share targeted thematic investment data across its organization.
Max Bowie – Waters Technology
Sycomore Asset Management is rolling out a series of customized workspaces to its analysts and portfolio managers to support the firm’s thematic environmental, social and governance (ESG) investing strategies, leveraging Symphony Communication Services’ collaboration platform and FinTech Studios’ Apollo app. The Symphony – FinTech Studios service will become the French firm’s central platform for communications between business areas, and for providing internal users with custom-filtered thematic
/bit.ly/3kzcdM9

Eventus, Notabene and TRM Labs partner to solve compliance challenges for firms trading digital assets; New solution, Project TEN, will bring compliance and risk management solutions to crypto-native firms as well as traditional institutions looking to move into virtual assets.
Wesley Bray – The Trade
Three market providers of global digital asset regulatory and compliance have partnered to develop a one-stop solution for firms across the digital asset ecosystem.
/bit.ly/3ngVM8W

TRM Labs, Eventus, Notabene form partnership to deliver one-stop compliance solution for digital asset ecosystem
Eventus Systems
Project TEN offers combined solution for crypto anti-money laundering (AML), trade surveillance, Travel Rule compliance
Three market leaders in the global digital asset regulatory and compliance space have formed a partnership to create a one-stop solution for firms across the digital asset ecosystem, solving for cryptocurrency anti-money laundering (AML), trade surveillance, as well as Travel Rule compliance for Virtual Asset Service Providers (VASPs).
/bit.ly/3kDj2fS

Trumid promotes founding member to co-CEO position to lead growth and expansion; Incoming co-CEO has served as president and a member of Trumid’s board of directors since 2014.
Wesley Bray – The Trade
Fixed income platform provider Trumid has promoted Mike Sobel, one of the company’s founders, to the position of co-CEO. Sobel will take on the role, while continuing to serve as Trumid’s president as well as serving as a member of the company’s board of directors.
/bit.ly/3wNrCNL

Cybersecurity

U.S. Department of the Treasury Announces Partnership with Israel to Combat Ransomware;
Partners Establish Bilateral Task Force to Support Fintech Innovation and Cybersecurity; Announcement Part of Biden Administration Efforts to Accelerate International Cooperation to Counter Ransomware
U.S. Department of Treasury
Building on the long-standing relationship between the Israeli Ministry of Finance and the U.S. Department of the Treasury, Deputy Secretary of the Treasury Wally Adeyemo met with Finance Minister Avigdor Lieberman and Director General of the National Cyber Directorate Yigal Unna in Israel today to establish a bilateral partnership to protect critical financial infrastructure and emerging technologies and expand international cooperation to counter the threat ransomware poses to countries and the global economy. This expanded cooperation supports Treasury’s sustained efforts in this domain and will occur under the auspices of a broader U.S.-Israeli Task Force, also launched today, on Fintech Innovation and Cybersecurity. The announcement follows the Counter-Ransomware Initiative meeting held virtually at the White House in October with the European Union and more than 30 countries, including Israel. At that meeting, Deputy Secretary Adeyemo underscored the importance of international cooperation to address the abuse of virtual currency and disrupt the ransomware business model.
/bit.ly/3ceJnfA

FBI says hackers got no data after compromising email server
Reuters
The FBI said Sunday that hackers did not access any data or personal information on its network, a day after they compromised an agency server to send out thousands of fake emails.
/yhoo.it/3ccOInG

FBI email server hacked; attackers pin blame on cybersecurity consultant
Grayson Quay – The Week
The FBI confirmed Saturday that its servers had been hacked and fraudulent spam emails were sent to more than 100,000 people, The Washington Post reported.
These emails, which were sent to publicly listed web administrators, warned of an imminent cyber attack orchestrated by hacker group TheDarkOverlord and “white hat” cybersecurity consultant Vinny Troia.
/bit.ly/3FhAWfT

DHS announces new program to attract and retain cybersecurity talent
Maggie Miller – The Hill
The Department of Homeland Security (DHS) on Monday announced a new program to attract and retain cybersecurity professionals, as major cyber incidents have ticked up over the past year and are drawing more government attention.
The Cyber Talent Management System (CTMS) will streamline and screen the application process for potential cybersecurity professionals, and those hired through CTMS will join the DHS Cybersecurity Service, a team that will work to protect critical infrastructure against cyberattacks.
/bit.ly/3kD6LYQ

Cryptocurrencies

Wall Street regulator rejects VanEck’s bitcoin-backed ETF; SEC dissatisfied with plan to prevent ‘fraudulent and manipulative acts’ from reaching regulated markets
Steve Johnson and Philip Stafford – FT
US regulators on Friday rejected a high-profile attempt to list a bitcoin-based exchange traded fund on Wall Street, citing worries over the potential that fraud in the crypto market will reach regulated exchanges.
/on.ft.com/3DfWdWP

Ballyhooed Crypto Venture Bakkt Shows Limited Growth Three Years Later
Crystal Kim – Bloomberg
Three years after a much-touted debut that included partnerships with mega-brands such as Starbucks and Microsoft, the digital-asset marketplace Bakkt Holdings Inc. is showing incremental progress toward its goal of connecting the digital economy.
/yhoo.it/3owm6ve

Sam Bankman-Fried discussed the best blockchains for mass crypto adoption, the rise of NFTs, his donations to charity, as well as his biggest regret so far in a recent interview. Here are the 11 best quotes.
Camomile Shumba – Business Insider
FTX CEO Sam Bankman-Fried discussed why he thinks solana is superior to ethereum in a recent interview; He talked about how institutional investors may still be years away from widely adopting crypto; And he talked about what steps his company takes to make sure newcomers to crypto don’t think FTX is a scam. Crypto billionaire Sam Bankman-Fried, who heads up the FTX exchange, recently discussed the current cryptocurrency climate, including the outlook for institutional investment, the rise of non-fungible tokens and how a badly placed ad can make rookies question the legitimacy of a crypto exchange.
/yhoo.it/3olODDC

FTX US Says Daily Trading Volume Jumped 500% Last Quarter
Vildana Hajric – Bloomberg
increase to about 4.5%; More than 60% of the volume on FTX US comes from institutions
Crypto exchange FTX US released third-quarter operational and trading results that showed the privately-held firm gaining market share in the competitive world of digital-asset exchanges.
/bloom.bg/3qvobKv

Crypto Firm Circle Plans Expansion With Asia HQ, Venture Arm
Joanna Ossinger – Bloomberg
Allaire sees yield products, stablecoins fostering growth; Issuer of USDC coin picked Singapore as regional headquarters
Circle, the principal operator of the second-biggest stablecoin, sees potential growth with corporate balance sheets as it broadens its geographic footprint and product offerings.
/bloom.bg/3Diuzs1

A $27 Billion Token Loved by Exiled Billionaire and Steve Bannon
Zijia Song – Bloomberg
Himalaya Coin has surged 270-fold since its debut this month; Billionaire Wengui Guo appeared in music video touting it
Like so much in cryptocurrencies, there’s a lot to unpack with Himalaya Coin, which has quietly zoomed to an apparent $27 billion valuation in less than two weeks.
/bloom.bg/2YQLp2s

Politics

The EU Bankrolled a Rebellion That Threatens to Tear It Apart; Poland and Hungary have used the largesse of the European Union to undermine democracy and the rule of law. Is it too late to bring them in line?
Wojciech Moskwa, Zoltan Simon, Rodney Jefferson – Bloomberg
Governments across Europe are showcasing their plans to reinvigorate economies after the pandemic, and nowhere more so than in Poland. Ruling Law & Justice party officials have visited dozens of towns to hand out replica checks to local leaders displaying how much is headed their way. The slogan on billboards and buses declared the government had found “770 billion zloty for Poland.” That’s equivalent to $190 billion, a full one-third of the nation’s economic output.
/bloom.bg/3DeX8qA

The Crypto Ambitions of New York’s Next Mayor — and What Could Stop Him; Eric Adams’s embrace of crypto and his promise to make the city the center of the industry have generated excitement. He’s got his work cut out.
Fola Akinnibi and Crystal Kim – Bloomberg
New York City Mayor-elect Eric Adams is already excelling at one major aspect of the job — cheerleading — at least as far as cryptocurrency is concerned. Since his Nov. 2 victory, Adams has been selling New York as a crypto-friendly hub. The Brooklyn borough president and former cop has the support of crypto heavyweight Mike Novogratz of Galaxy Digital. He has opened up a jokey competition with fellow crypto-enthusiast and Miami Mayor Francis Suarez; suggested schools teach cryptocurrency and its technology; pledged to explore a mechanism to allow New Yorkers to be paid in virtual currencies; and even vowed to take his own first three paychecks as mayor in Bitcoin.
/bloom.bg/3CjK2a6

Regulation

Billionaire Charged in $2 Billion Tax Fraud Says He Has Dementia; Software maven Robert Brockman says, at 80, his memory loss bars him from trial in the biggest individual evasion case in history; prosecutors say he’s faking it. Judge to decide.
Neil Weinberg and David Voreacos – Bloomberg
Robert Brockman holds 10 patents. He created one of the world’s top software systems for car dealers and amassed billions in overseas trusts. In recent years, he seemed to some just as sharp. In a 2019 antitrust case, at age 77, he said, “I am into the details, big time.” A year later, he promised to teach a top executive complex tasks.
/bloom.bg/3ngsAPy

UK fines broker over ‘cum-ex’ tax scandal; Penalty is second FCA has meted out over case as regulator deepens investigation
Philip Stafford – FT
The UK markets regulator has fined Sunrise Brokers £642,000 for facilitating “self-evidently suspicious trades” that were used in cum-ex dividend trading, further drawing the City into one of Europe’s biggest tax scandals.
/on.ft.com/3oj2Cu2

2022 and First Quarter of 2023 Report Filing Due Dates
FINRA
To assist members in their financial reporting obligations, FINRA is issuing this Notice to provide the due dates for Annual Report, Financial and Operational Combined Uniform Single (FOCUS), Form Custody, and supplemental FOCUS Report filings that are due in 2022 or the first quarter of 2023.1 FINRA reminds members that all such filings they submit to FINRA must be made electronically through FINRA Gateway.
/bit.ly/3c6aNUT

Principles for the Regulation and Supervision of Commodity Derivatives Markets, Report of the Board of IOSCO
IOSCO
The Board of the International Organization of Securities Commissions (IOSCO) is requesting feedback on proposed revisions to its 2011 Principles for the Regulation and Supervision of the Commodity Derivatives Markets.
/bit.ly/3ChJgdU

Investing and Trading

In Bubbly Markets, Betting on Illiquid Credit Funds May Pay Off; With valuations at sky-high levels, credit strategies with lengthy lockups may be a wise choice.
Brian Chappatta – Bloomberg
The Blackstone Private Credit Fund’s summary of risk factors reads like a compilation of investor nightmares: “You will not have the opportunity to evaluate our investments before we make them. … You should not expect to be able to sell your shares regardless of how we perform. … You may not have access to the money you invest for an extended period of time. … You will be unable to reduce your exposure in any market downturn. … You will bear substantial fees and expenses in connection with your investment.”
/bloom.bg/3ck8229

Crunch at Ports May Mean Crisis for American Farms; Backlogs and cancellations are hitting growers as costs rise, profits slump and overseas customers shop elsewhere.
Ana Swanson – NY Times
It’s just 60 miles from El Dorado Dairy in Ontario, Calif., to the nation’s largest container port in Los Angeles. But the farm is having little luck getting its products onto a ship headed for the foreign markets that are crucial to its business.
/nyti.ms/3ChNgLn

The oldest asset class of all still dominates modern wealth; Low interest rates in advanced countries have pushed money into real estate instead of business investment
Rana Foroohar – FT
Are real estate prices today the equivalent of bread prices? It’s a question that was recently asked by a trade union leader in Germany, where there has been a push to seize corporate-owned rental units and put them in public ownership. Many Dutch cities want to ban investors from buying cheap homes to rent out.
/on.ft.com/3Djzlpj

Inflation Is Killing the Dollar Carry Trade in Emerging Markets
Karl Lester M. Yap and Marcus Wong – Bloomberg
A short-lived reprieve for emerging-market carry trades funded in dollars looks to be over, with an upsurge in U.S. inflation making the outlook increasingly treacherous.
/bloom.bg/3Cj3L9K

Retail Traders Show Signs of Recoil After Wild Market Ride
Kamaron Leach – Bloomberg
Kortlandt Taylor began buying stocks in January and almost immediately found herself being whipsawed by the meme stock mania, as GameStop Corp. climbed 1,745% before Robinhood Markets Inc. restricted trading on its app, causing the shares to tumble.
/yhoo.it/3HoI0ZZ

The Problem With How Many Financial Advisers Set Their Fees; When you’re charged based on a percentage of your assets, it’s worth asking yourself: Am I paying too much?
Glenn Ruffenach – WSJ
In a recent column about financial advisers, you noted that their fees are increasing. My planner’s fee, as is common, is based on the size of my nest egg. My questions: What’s your opinion about calculating fees in this way? Is this a good method? Is there a better one? I’ve done well with my adviser through the years.
/on.wsj.com/3ckuBUp

Environmental, Social and Corporate Governance

Shell to Move HQ to London, in Historic Shift Amid Energy Transition; Oil major, grappling with transition to low-carbon energy, says ditching its dual share structure will make it easier to facilitate shareholder returns, amend portfolio
Sarah McFarlane – WSJ
Royal Dutch Shell RDS.A -0.18% PLC said it plans to consolidate its dual British and Dutch structure and move its headquarters to London, a historic shift the oil giant said would help it navigate the transition to low-carbon energy.
/on.wsj.com/30sqK4Y

China’s Coal Addiction Runs Deeper Than Economics; The economics of weaning China off coal are daunting, but geopolitical risks loom large for Beijing too—and may continue to slow down the pace of progress
Nathaniel Taplin – WSJ
China has been catching a lot of flak for not announcing more ambitious targets at the COP26 climate summit in Glasgow: and for helping, along with India, to water down the language of the final text on coal.
/on.wsj.com/3wL5hQV

Scotland’s whisky makers admit net zero targets will be hard to hit; Distilleries search for ways to cut high-energy production methods amid concern about peatland erosion
Mure Dickie – FT
The Scotch whisky sector made a special effort to welcome the COP26 global climate summit to Glasgow: issuing a special blend made from the output of 26 distilleries, served in 900 bottles of 97 per cent recycled glass with stoppers made of recycled wood and cork dust.
/on.ft.com/3wMRE3C

Russian Scientists Have a Mammoth Plan to Fight Arctic Warming; The key to saving Russia’s vital permafrost is to restore the ecosystem to the way it looked 14,000 years ago, according to a father-and-son duo
Evgenia Pismennaya and Yuliya Fedorinova – Bloomberg
Emissions of greenhouse gases from Russia’s thawing Arctic permafrost represent a giant climate threat for the planet. A pair of Russian scientists say the solution may lie in grazing a huge number of animals there, and possibly even a mammoth one – the woolly sort.
/bloom.bg/3cct7M8

Farmers Take on ‘Post-Apocalyptic’ Food Crisis
Across the globe, farmers are using new seeds, adding irrigation and swapping crops in the race against climate change.
Megan Durisin, Aine Quinn, Sybilla Gross – Bloomberg
For Australian cattle farmer Jody Brown, the most chilling evidence of drought is the silence. Trees stand still, the warbling of birds gone. Lizards and emus have long departed, while kangaroo mothers, unable to sustain offspring, kick baby joeys from their pouches, leaving them to perish in the devastating heat.
/bloom.bg/3cbetVn

Carbon Markets Draft at COP26 Prompts Warning From Activists
Ewa Krukowska – Bloomberg
Green lobbies concerned about potential for double counting; Countries have been working on offset program since 2015
A new proposal on international carbon markets released at the COP26 climate summit triggered warnings from environmental activists that bad design choices during these final stages of negotiations could lead to greenwashing instead of cleaner air.
/bloom.bg/3DjBAZG

Brazil Lashes Out on Climate Funds But Sees Carbon Market Deal
Isis Almeida and Jennifer A Dlouhy – Bloomberg
Environment Minister Joaquim Leite gives interview in Glasgow; Country is major player in carbon market negotiations
Brazil Environment Minister Joaquim Leite blasted rich, polluting countries for spending too little to help the developing world adopt clean energy, after their failed promise to provide $100 billion in climate finance annually.
/bloom.bg/3wM7bki

Executive pay and climate: can bonuses be used to reduce emissions? Senior management pay is increasingly linked to sustainability targets, but critics are sceptical this will amount to meaningful change
Andrew Hill – FT
The greening of Schneider Electric started in 2005. The French electrical equipment group announced it would review its “social and environment performance” and set up a “planet and society barometer”. In 2008 it even rebranded itself in lurid green.
/on.ft.com/3cbNvgb

Institutions

CMC Exploring Split Into Two Separate Companies, Sky Reports
Deana Kjuka. – Bloomberg
CMC Markets Plc’s Chief Executive Officer Peter Cruddas is working with advisers on plans to break up the online broker into two separate London-listed companies, Sky News reported Saturday, citing people familiar with the plan that it didn’t identify. If the split goes through, it would create a leveraged trading business hosting its spread-betting operations, and a non-leveraged business holding the technology and new investment products platforms, Sky said. An announcement that work has started on breaking up the company could come within days, according to the report.
/yhoo.it/3kBNhUq

JPMorgan chief becomes first Wall Street boss to visit greater China during pandemic; Jamie Dimon says he is ‘not swayed by geopolitical winds’ on brief trip to Hong Kong
Tabby Kinder – FT
Jamie Dimon, the chair and chief executive of JPMorgan Chase, said he was “not swayed by geopolitical winds” as he arrived in Hong Kong on Monday, becoming the first boss of a big Wall Street investment bank to visit the city or mainland China since the start of the coronavirus pandemic.
/on.ft.com/3Dl3YKX

Regions

Tiger Global’s $65 Billion Man Shrugs Off China Crackdown Threat
Hema Parmar, Erik Schatzker, and Tom Maloney – Bloomberg
Scott Shleifer, Coleman’s No. 2, oversees bulk of assets; His venture-capital team backed 16 Chinese companies this year
Chase Coleman is the name most Wall Street professionals associate with Tiger Global Management, the investment firm known for its hot hand in internet startups and early bets on China.
/bloom.bg/3nh7Abl

Shell to shift tax base to UK and ditch dual share structure; Chief executive will also move from Netherlands in overhaul that Dutch government branded ‘unwelcome surprise’
Tom Wilson and Oliver Ralph and Mehreen Khan – FT
Royal Dutch Shell plans to ditch its dual share structure and move its tax residence from the Netherlands to the UK in a historic shift that sparked sharply divided reactions on each side of the North Sea.
/on.ft.com/3cbLMYf

Portuguese law bans employers from contacting staff out of hours; New work-from-home regulations also demand companies meet workers’ energy and internet costs
Peter Wise – FT
Companies in Portugal will be forbidden from contacting employees outside working hours and must meet their extra energy and communications costs under one of Europe’s most employee-friendly laws for regulating homeworking.
/on.ft.com/3nj9ZT8

Canada’s Harvest Bust Leaves Grain Companies Scrambling to Meet Sales
Jen Skerritt – Bloomberg
Many farmers unable to deliver on contracts after poor yields; Grain handlers paying high prices to find available supplies
A dearth of grain in Canada has left companies scrambling for supplies. Grain companies are scouring Canada’s prairies for replacement crops to fulfill their export commitments after drought withered output, leaving many farmers unable to deliver pre-sold supplies, said Wade Sobkowich, executive director of the Western Grain Elevator Association that represents major grain handlers such as Viterra Inc.
/bloom.bg/2YQL7IU

Miscellaneous

Jes Staley exchanged 1,200 emails with Epstein that included unexplained phrases; Regulators flagged ‘snow white’ reference in messages between former Barclays boss and sex offender
Stephen Morris and Caroline Binham – FT
Jes Staley exchanged 1,200 emails with Jeffrey Epstein over a four-year period with content that included unexplained terms such as “snow white”, according to people familiar with the correspondence between the former Barclays chief executive and the convicted sex offender.
/on.ft.com/3DfW05Z

How management fashions can change the world; Innovative organisational habits are slow to catch on, but as they percolate they have the potential to transform bloated bureaucracies
Andrew Hill – FT
Ten years ago, I interviewed fast-talking management evangelist Gary Hamel. “I am willing to stake my reputation that we will see more dramatic change in the way management is organised in the next 10 years than we’ve seen in the last 60 or 70,” he told me.
/on.ft.com/3DllCOG

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