Cboe Global Markets Agrees to Acquire NEO, Strengthening Global Equities Offering

Nov 16, 2021

First Read

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

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Hits & Takes
John Lothian & JLN Staff

Jennifer Nayar has stepped down from Vela, she disclosed in a post on LinkedIn. The Trade reported the move as well based on her LinkedIn post. Nayar had been in the CEO role since 2015.

The CME Group is living proof that going small can be big. The exchange operator announced yesterday that their Micro Equity Index futures and options had traded more than one billion contracts since their launch. Micro E-mini Equity Index futures became available for trading across four U.S. indices – S&P 500, Nasdaq-100, Russell 2000 and Dow Jones Industrial Average – in May of 2019, with Micro E-mini options available on Micro E-mini S&P 500 and Nasdaq-100 futures contracts in August of 2020. Congratulations to the CME on this milestone.

It is good to be king, or at least the CEO of a huge global bank. JPMorgan’s Jamie Dimon was allowed to skip Hong Kong’s strict travel restrictions because of the size of the bank’s operations in the Asian financial hub, Bloomberg reported.

Friday, November 19, 2021 is the deadline for the STA Women in Finance Ken Heath Award – Advocacy and the STA Women in Finance Mentor of the Year Award – Mentorship. Nominations should be less than 200 words and should be emailed to sta@securitytraders.org

Daniel R. Gregus has been named as director of the Chicago regional office of the SEC. Gregus, a 28-year veteran of the SEC, has served as acting co-director since June.

Exchange Analytics has launched a new FINRA Firm Element & Annual Compliance meeting course, which is customizable to the needs of a firm’s broker-dealer business. HERE is a demo for the course.

The Wall Street Journal has a video titled “How DeFi Hopes to Disrupt Traditional Finance.”

The FT has a story titled “Cryptocurrencies: how regulators lost control.”

Former Man Financial (and MF Global) CEO Kevin Davis was featured in an article in Authority Magazine, published on Medium, titled “Remote Career Development: Kevin Davis Of First Workings On How To Advance and Enhance Your Career When You Are Working Remotely.” — Authority Magazine

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

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A little last-minute, but Cboe Global Markets is hosting an investor day meeting today with its exchange leaders, including Ed Tilly, chairman, president and CEO, to discuss the company’s financial targets and strategies over the next three to five years. The two-hour presentation begins at 9:30 a.m. ET, but the good news is that it will be rebroadcast. Register here to log in. The replay will be available on Cboe’s investor relations website under Events and Presentations. ~SC

Collin Canright’s latest “FinTech Rising” reports on a recent Federal Reserve survey on the push for faster payments, as well as on the meeting in Chicago last week of the Global Digital Asset and Cryptocurrency Association’s decentralized finance conference. Read about both here.~SC

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FIA Expo 2021 Video: Tom Lazenga of TNS Talks Tech
JohnLothianNews.com

Tom Lazenga is global head of sales at TNS, or Transaction Network Services, a fintech firm that provides global real-time data communication networks to industry participants. John Lothian News interviewed him at FIA Expo about the firm’s technology offerings and its plans for the future.

Watch the video »

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Why a California Bartender Won’t Stop Trolling Citadel’s Ken Griffin; The GameStop saga brought retail investors into a larger debate on how trades are executed — from payment for order flow to latency arbitrage.
Michelle Celarier – Institutional Investor
On October 17, a truck parked in Times Square beamed a digital ad that asked: “Do you believe #Ken Griffin lied?” The question and the ad are part of an ongoing brawl between meme stock-loving retail investors and Wall Street heavyweight Citadel Securities, which Griffin owns. And the row shows no signs of ending soon — at least not if 40-year-old California bartender Katherine Larsen has any say in the matter.
/bit.ly/3nl31wY

***** Bartenders are natural influencers. They not only influence people, they influence people who are under the influence.~JJL

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Chicago, the ‘forever rat capital’; So far this year, Chicagoans have called 311 about the rodents more than twice as often as New Yorkers, according to a study.
Dennis Rodkin – Crain’s Chicago Business
Chicagoans have called in rat complaints more than twice as often as New Yorkers this year, according to a new study. A little more than 60,000 rat complaints were phoned in to Chicago’s 311 line between Jan. 1 and Nov. 10, according to a study released today by RentHop, an apartment market data source and renters’ tool. In the same period, New Yorkers made just fewer than 26,000 rat calls.
/bit.ly/3CjlcXZ

***** At the CBOT we used to have a bad “floor rat” problem. Electronic trading seems to have eradicated that problem.~JJL

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Remote Career Development: Kevin Davis Of First Workings On How To Advance and Enhance Your Career When You Are Working Remotely
David Liu – Authority Magazine
Do everything possible to find or create a space to work from. This might mean asking roommates or other members of the household to align their own schedules to accommodate this need.
/bit.ly/3wSWFbg

***** Funny that the story lists Kevin Davis as having been the CEO of Man Financial and leaves out MF Global, where he was CEO at the time of the IPO. But then his LinkedIn account does not list any experience previous to his founding of First Workings.~JJL

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Monday’s Top Three
Our top story Monday was The Wall Street Journal’s Bitcoin Creator Satoshi Nakamoto Could Be Unmasked at Florida Trial. Second was a Wall Street Journal opinion piece, The Chip That Changed the World, on the 50th anniversary of the launch of the Intel 4004 microprocessor. (The writer’s opinion that “Life has improved exponentially since,” is debatable.) Third was DRW Intern to Full-Time Experience, a DRW video on YouTube.

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MarketsWiki Stats
26,647 pages; 236,250 edits
MarketsWiki Statistics

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Lead Stories

Cboe Global Markets Agrees to Acquire NEO, Strengthening Global Equities Offering
Cboe Global Markets
Planned transaction builds on Cboe’s footprint in North America, adding a registered Canadian securities exchange with diverse product set; Next step in Cboe’s pursuit to build one of the world’s largest global securities and derivatives trading networks to service diverse customer needs; Deal is expected to close in the first half of 2022, pending regulatory review
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced it has entered into a definitive agreement to acquire Aequitas Innovations, Inc., more commonly known as NEO, a fintech organization that comprises of a fully registered Tier-1 Canadian securities exchange with a diverse product and services set ranging from corporate listings to cash equity trading.
/bit.ly/3cfarez

JPMorgan sues Tesla for $162 million over warrants, Musk tweets
Jonathan Stempel – Bloomberg
JPMorgan Chase & Co on Monday sued Tesla Inc for $162.2 million, accusing Elon Musk’s electric car company of “flagrantly” breaching a contract related to stock warrants after its share price soared.
/yhoo.it/3FowdJE

UK watchdog gives green light to use of ‘synthetic’ Libor rate
Huw Jones – Reuters
Banks and companies can use a “synthetic” version of the tarnished Libor interest rate benchmark for pricing existing sterling and yen denominated contracts that have not moved to an alternative rate by the end of December, Britain’s Financial Conduct Authority said on Tuesday.
/yhoo.it/30y3dAc

Gary Gensler’s Everything Crackdown Reaches Private Equity; Questions loom over returns, fees, conflicts — and who really benefits.
Paul J. Davies – Bloomberg
Gary Gensler is taking on the world. The head of the Securities and Exchange Commission wants to light up the opaque world of private capital. He has already promised this year a closer look at crypto, online brokers like Robinhood and green investment funds in what has been called an “Everything Crackdown.”
/bloom.bg/3cgPnV1

Celebrity NFTs Risk ‘Catastrophic Failure.’ Just Ask John Cena; Tokens from Grimes and A$AP Rocky fall, leaving buyers with losses
Olga Kharif and Kim Bhasin – Bloomberg
Celebrities like the musician Grimes have been quick to cash in on nonfungible tokens, making millions from minting collections of their own digital art. For buyers, however, the payoff has been far less rewarding. Consider “Earth” — one of several NFTs issued by Grimes in February. Depicting a cherub spearing the globe, perhaps in a reference to her baby with SpaceX’s Elon Musk, it was part of a collection that netted the artist (whose real name is Claire Elise Boucher) about $5.8 million after selling out in 20 minutes. While the cost to originally own one of the 303 limited editions was $7,500, one unit recently resold for just $1,200 in a stunning 84% drop. Likewise, a piece rapper A$AP Rocky sold for $2,000, showing him spinning around in space, in April just traded for about $900.
/bloom.bg/3cjMpPA

BoE hints at retaliation if Brussels derecognises UK clearing houses; Warning follows release of new BoE proposals for assessing foreign clearing houses
Costas Mourselas – Risk.net
Action by the European Union to remove UK clearing houses from the bloc’s list of approved venues could lead to tougher cross-border supervision of EU central counterparties (CCPs), a Bank of England official has hinted. Christina Segal-Knowles, head of financial market infrastructure at the BoE, says any policies by a foreign authority that undermine its relationship with the UK central bank could result in more active oversight of foreign CCPs in that authority’s jurisdiction.
/bit.ly/30xU4ra

Bourse operator Cboe to buy Canada’s NEO exchange
John McCrank – Reuters
Cboe Global Markets on Monday said it agreed to buy Canadian stock exchange operator Aequitas Innovations Inc, known as NEO, for an undisclosed amount, expanding its North American footprint in the latest of a string of recent acquisitions.
/yhoo.it/3CkWhU3

VanEck’s bitcoin futures ETF to list tomorrow
Aislinn Keely – The Block
VanEck’s bitcoin futures-based exchange traded fund (ETF) is slated to list tomorrow, according to an announcement from the firm.
/bit.ly/3nsBlX3

BNP Paribas/US: how the West was lost; Tough competition and low rates are prompting European banks to retreat from the stateside retail market
FT
European banks came charging into the US decades ago in search of the American dream. Success has proved to be elusive. Tough competition and low rates are prompting remaining contenders to question stateside commitments.
/on.ft.com/3wORWah

BNP Picks Up the Pieces as Europe’s Banks Sever Hedge Funds Ties
Alexandre Rajbhandari – Bloomberg
Bank after bank across Europe has decided it’s not worth the trouble to try to compete with Wall Street in the high-speed, high-risk world of equities trading. BNP Paribas SA begs to differ.
/yhoo.it/3qFhjdR

Covid-19 shock responsible for global inflation, says Australian central bank; Cheap electricity and strong labour supply limit price rises compared with other large economies
Sophia Rodrigues – FT
Cheap electricity and strong labour supply have kept Australian inflation lower than in other countries, the governor of the Reserve Bank declared on Tuesday. Addressing a group of business economists in an online webinar, Philip Lowe said price pressures in Australia were lower than in countries such as the US and the UK, with underlying inflation of 2.1 per cent in the year to the September quarter.
/on.ft.com/30vYoa0

Coinbase co-founder launches biggest VC fund in crypto; Fred Ehrsam is behind $2.5bn fund Paradigm One, to which investors jockeyed to commit money
Miles Kruppa – FT
Cryptocurrencies are booming, and a three-year-old investment firm has raised the largest new venture capital fund in history to keep the party going. Coinbase co-founder Fred Ehrsam and former Sequoia Capital partner Matt Huang have finished raising $2.5bn this month for Paradigm One, their first venture capital fund. Investors jockeyed to commit money to the fund, allowing them to raise twice the amount they initially targeted.
/on.ft.com/3Cl30xg

‘It Is a Very Large Bank’—Hong Kong Defends Letting Jamie Dimon Skip Quarantine; Whirlwind visit by JPMorgan’s chief executive came just after the city tightened its Covid-19 restrictions
Natasha Khan – WSJ
A 32-hour visit to the city by JPMorgan Chase & Co. Chief Executive Jamie Dimon has drawn attention to how shut-off the Chinese financial hub has become after two years of keeping coronavirus cases at bay. Mr. Dimon’s visit—the first known trip to the city by the head of a Wall Street bank since the beginning of the pandemic—came just days after Hong Kong tightened its quarantine rules to remove previous exemptions for travelers including top international financial executives.
/on.wsj.com/3wSIra0

European Execution Landscape Being Fundamentally Reshaped As Asset Managers Transform From ‘Liquidity Takers’ To ‘Liquidity Makers’ – New Report Reveals Equity And Fixed-Income Markets At Point Of Radical Shake-Up – And Prompts Calls For An Overhaul Of Market Regulation
Mondovisione
Asset managers now hold the keys to liquidity provision on Europe’s capital markets in a fundamental shift in the financial ecosystem and its future development, a new study reveals today. The widespread adoption of automated trading – which accelerated in the pandemic – has given asset managers greater direct access to new trading partners providing more efficient and diverse options to trade. This empowerment is shifting the traditional balance of the markets as asset managers are increasingly becoming ‘liquidity makers’, rather than ‘liquidity takers’ relying solely on traditional sell-side provision of execution services.
/bit.ly/3DieBOK

Coronavirus

Germany Plans Curbs for Unvaccinated as Europe Battles Spike
Stefan Nicola – Bloomberg
Potential ruling parties are planning new pandemic legislation; Fresh Covid restrictions are on the way in Spain and Italy
Germany is heading toward stiffer restrictions on people who have refused a Covid-19 vaccine, as authorities across Europe seek to rein in a renewed surge of the disease.
/bloom.bg/3wSxqG3

Pfizer Moves to Allow Cheap Versions of Promising Covid Pill
Robert Langreth and James Paton – Bloomberg
Pact with UN-backed group would cover 53% of global population; Merck, Ridgeback struck similar agreement for their antiviral
Pfizer Inc. reached a licensing agreement that will allow generic-drug manufacturers to produce inexpensive versions of its Covid-19 pill for 95 low- and middle-income countries, following a similar move by Merck & Co.
/bloom.bg/3Dmg0E5

Russia Expects WHO Approval of Sputnik V Vaccine by Year-End
Jake Rudnitsky – Bloomberg
RDIF CEO says no delivery delays to foreign vaccine buyers; WHO says Sputnik V’s rolling submission is incomplete
Russia’s Sputnik V Covid-19 vaccine is on track to be approved by the World Health Organization by the end of the year, according to the head of the Russian Direct Investment Fund.
/bloom.bg/3wRhVhs

Hong Kong Defends Letting JPMorgan’s Dimon Skip Quarantine
Kari Soo Lindberg – Bloomberg
Carrie Lam says bank does important business in the city; Hong Kong imposes strict travel rules to keep virus at bay
Hong Kong let JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon skip the city’s 21-day hotel quarantine because of the size of the bank’s operations in the Asian financial hub, saying his trip was relatively low risk.
/bloom.bg/3ce61ot

Pfizer agrees deal to expand low-cost access to Covid-19 pill; Agreement with UN-backed patent body follows pressure over company’s failure to license vaccine IP
Jamie Smyth and Donato Paolo Mancini – FT
Pfizer has followed its rival Merck and agreed a licensing deal with the UN-backed Medicines Patent Pool to expand low-cost access to its Covid-19 antiviral pill throughout the developing world.
/on.ft.com/3Cl4zev

Covid-19 Boosters Become Available to All Adults Across Several States, Cities; Arkansas, West Virginia and New York City are the latest to expand eligibility beyond the high-risk groups recommended by federal health officials
Felicia Schwartz. – WSJ
Several cities and states have begun offering Covid-19 boosters to all adults, moving beyond federal guidelines in a bid to prevent another wave of cases as people head inside during the cold weather.
/on.wsj.com/3wTdrXr

Covid-19 Insurance Lawsuits Move Toward High-Stakes Phase; Represented by law firms experienced in insurance-coverage disputes, big companies prepare for dragged-out legal fights
Leslie Scism – WSJ
Businesses suing insurers for billions in losses from Covid-19 shutdowns are entering a new phase: jury trials. Over the past year, judges have ruled in favor of insurers in hundreds of cases, backing up the carriers’ rejections of “business interruption” insurance claims. Many of those rulings have involved policies with virus-specific exclusions, which can make the cases more open-and-shut for judges.
/on.wsj.com/3cfjb4q

Exchanges, OTC and Clearing

Cboe strengthens North American equities foothold with NEO acquisition; The Canadian securities exchange alongside Cboe’s recently acquired alternative trading system, MATCHNow, will greatly expand its equities offering in the region.
Annabel Smith – The Trade
Cboe Global Markets has moved to strengthen its equities grasp in North America with the acquisition of Tier-1 Canadian securities exchange, NEO. The acquisition is expected to take close in the first half of next year and will be funded through cash and increased debt. Further terms of the deal were not disclosed.
/bit.ly/3chvsW1

Cboe Global Markets to Present on its Growth Strategy and Outlook at Investor Day Meeting Today
Cboe
To Increase Medium-Term Organic Total Net Revenue Growth Target to 5% – 7% from 4% – 6%¹ Annually; To Announce Medium-Term Organic Data and Access Solutions Revenue Growth Target of 7% – 10%¹ Annually; To Forecast Continued Strong Cash Flow Generation with Balance Between Growth Investments and Capital Returns; Will Detail the Emerging Opportunities and Potential Initiatives in the Digital Asset Marketplace
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, will present its strategy and path to achieving new medium-term financial targets today at its 2021 Investor Day. The company believes that by expanding its global presence to the highest value markets, increasing access to its differentiated products and solutions and accelerating its growth with recurring non-transaction revenue, Cboe is positioned to drive long-term shareholder value.
/bit.ly/30oEkGK

EEX to launch new Weekly European Cheese Indices (WECI)
EEX
The European Energy Exchange (EEX) has today announced the launch of new indices – the “EEX Weekly European Cheese Indices” (WECI), which will bring further price transparency to the European dairy market. Published on Wednesdays and based upon price contributions from physical dairy market participants, the indices will cover four of the major European “commodity” cheeses: Cheddar Curd, Mild Cheddar, Young Gouda and Mozzarella.
/bit.ly/3wN4BdU

Micro E-mini Equity Index Futures and Options Surpass 1 Billion Contracts Traded
CME Group
CME Group, the world’s leading and most diverse derivatives marketplace, today announced that Micro E-mini Equity Index futures and options surpassed 1 billion contracts traded across all four indices on November 12. Micro E-mini Equity Index futures became available for trading across four U.S. indices – S&P 500, Nasdaq-100, Russell 2000 and Dow Jones Industrial Average – in May of 2019, with Micro E-mini options available on Micro E-mini S&P 500 and Nasdaq-100 futures contracts in August of 2020.
/bit.ly/3HCWiqj

LCH eyes SOR swap conversion; CCP will consult in Q1 on conversion methodology for switching SOR swaps to Sora
Chris Davis – Risk.net
LCH has confirmed plans to automatically convert outstanding swaps linked to Singapore’s swap offer rate (SOR) to its risk-free rate replacement ahead of the benchmark’s demise in mid-2023. SOR is a synthetic benchmark for Singapore dollar interest rate swaps, implied from the cost of borrowing in US dollars and swapping back to the Singaporean currency. Since the rate uses US dollar Libor as an input, it cannot be calculated after Libor’s cessation and its publication will therefore be
/bit.ly/3nkA6sD

Intercontinental Exchange Publishes 2021 Corporate Responsibility Report
Intercontinental Exchange, Inc.
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology and market infrastructure, today released the company’s sixth annual Corporate Responsibility Report. The report summarizes environmental, social and governance (ESG) highlights from 2020 and provides an update on the range of ICE’s ESG policies and metrics. This report also marks the first time that ICE worked with a third-party consultant to conduct a formal materiality analysis and solicited feedback from the company’s employees, customers, investors, suppliers, and communities to better understand what they view as ICE’s substantive ESG risks and opportunities.
/bit.ly/3CmmxNB

T7 Release 10.0: Announcement of Eurex T7 functionality activations after Release date
Eurex in the Eurex Release Notes for T7 Release 10.0, the following functionalities will be activated in Production after the official Release Date: a. Pre-Trade Risk Limits for Futures Spreads will be activated for all Futures products: Simulation: Already activated,
Production: 6 December 2021
/bit.ly/3ClwxXw

The 23rd Latibex Forum starts on Monday, 22 November
BME-X
The twenty-third edition of the Latibex Forum will kick off next Monday, 22 November. The benchmark event that brings together companies and investors from Latin America and Europe will conclude on the 24th, following what will be three days of intense activity. Once again this year, the Forum will be held remotely, due to the Covid-19 pandemic, and all the panels will be broadcast on the event’s website, where the full programme can also be consulted.
/bit.ly/3wOWtti

??Special Purpose Acquisition Companies (SPACs) Can Now Be Listed and Traded in Switzerland
BME-X
As of 6th December 2021, SPACs can be listed and traded on the SIX Swiss Exchange. Authorization from all of the relevant authorities has been obtained. The new listing standard for SPACs caters for the specific characteristics of these vehicles while upholding an appropriate degree of investor protection.
/bit.ly/30v9j44

FCA confirms rules for legacy use of synthetic LIBOR rates and no new use of US dollar LIBOR
UK FCA
The FCA has confirmed it will allow the temporary use of ‘synthetic’ sterling and yen LIBOR rates in all legacy LIBOR contracts, other than cleared derivatives, that have not been changed at or ahead of end-31 December 2021.
/bit.ly/3wPSyN5

Eurex And Korea Exchange Expand Around-The-Clock Ecosystem For KOSPI Derivatives
Mondovisione
Eurex is the only after-hours trading venue for KOSPI derivatives; Joint link will be extended with KOSPI 200 Weekly Options; Launch scheduled for first quarter of 2022
Eurex and the Korea Exchange KRX will expand their tradable product range with Weekly Options on the Korean benchmark index KOSPI 200. With weekly expirations on one of the world’s most heavily traded index options contracts, the two exchanges are expanding their around-the-clock ecosystem for KOSPI derivatives. Thereby, both exchanges emphasize once again their decade-long commitment to connecting markets globally.
/bit.ly/2YP98zU

The Federation of Euro-Asian Stock Exchanges holds “Meet the Market with FEAS | Greek and Romanian Capital Markets” Virtual Event
FEAS
Online Event, 2021: On November 16th, 2021, The Federation of Euro-Asian Stock Exchanges (FEAS), alongside with its members Athens Stock Exchange and Bucharest Stock Exchange, held the “Meet the
/bit.ly/3Clp7Ub

— Amendments to the Bloomberg Commodity Index Futures and. Bloomberg Commodity Index Swaps (Cleared OTC) Contracts and Amendments to Related CBOT Transaction Fees — CME

Fintech

Flowdesk trusts BSO to optimise its global infrastructure and improve connectivity for its trading operations.
BSO
Flowdesk, an innovative crypto player in France offering liquidity provision solutions for the crypto ecosystem and institutional investors, was looking for a trusted partner to develop its business and gain efficiency on their trading operations. To overcome the connectivity constraints between the different crypto exchanges in Europe and Asia, Flowdesk chose BSO. This choice was motivated by BSO’s ability to master direct connectivity with all the multi-regional public clouds and its presence in traditional financial data centres (for instance Deribit, hosted at LD4).
/bit.ly/3HkWqdI

Luxury in the metaverse? Morgan Stanley says it could become a EUR50 billion market
Steve Goldstein – Bloomberg
Analysts at Morgan Stanley say there’s scope for luxury goods to sell as well virtually as they do physically — and say the market could be as large as EUR50 billion, or $57 billion at current exchange rates, by 2030. That could lift revenue by more than 10%, and industry earnings before interest and tax by 25%.
/yhoo.it/3oBniNU

Major sector ETFs face risk of large tech companies being reclassified; Shake-up could include pushing Visa, Mastercard and PayPal into the financial sector
Steve Johnson – FT
Three of the world’s four largest sector-based exchange traded funds face a shake-up due to proposed changes in their composition that would reclassify major companies in information technology indices as financial or industrial.
/on.ft.com/3njadcD

Parfin and Sepior Partner to Bring Institutional Grade Digital Asset Custody Solutions to Latin America, North America and Europe
Sepior ApS
Parfin
Parfin, the British-Brazilian fintech company building digital asset solutions for institutional customers, has announced today a partnership with Sepior, a Danish company specialized in Multiparty Computation (MPC) for Threshold Cryptography.
/yhoo.it/2YOZ4XE

Vela chief steps away from the helm after six and a half years; Jennifer Nayar has been chief executive of Vela Trading Systems and departs with no replacement yet announced.
Annabel Smith – The Trade
Data and trading technology provider Vela Trading Systems has seen its chief executive officer, Jennifer Nayar, step down after six and a half years at the helm of the company. In an update on social media, Nayar confirmed she had left Vela after joining the FinTech firm in 2015. Vela had not responded to a request for comment at the time of publication.
/bit.ly/3nkLBQP

Iress creates dedicated API data and trading solution team following acquisition of QuantHouse; New team acts as the final step in the integration of the QuantHouse business following its acquisition in May 2019.
Wesley Bray – The Trade
Market software provider Iress has created an API data and trading solutions team to help support increased demand for market data and infrastructure solutions.
/bit.ly/3chv6i9

LedgerEdge appoints fixed income expert to help drive US business; Incoming fixed income head brings over 15 years’ experience in leadership positions to LedgerEdge, having previously served at BNY Mellon, Deutsche Bank and RBC Capital Markets.
Wesley Bray – The Trade
Start-up bond trading platform LedgerEdge has appointed a senior fixed income leader to take on the role of business development for the US. Dom Holland will take on the role, helping support the US expansion of LedgerEdge, particularly as it looks to roll out a global corporate bond trading platform built on distributed ledger technology.
/bit.ly/30w8kjO

Cybersecurity

Lenders brace for more problems at NSO after US blacklisting; Israeli spyware firm faces restrictions on its business after being placed on ‘entities list’
FT Reporters – FT
NSO Group’s lenders are preparing for a restructuring of the Israeli spyware firm’s debt after the US commerce department placed the company on a trade blacklist this month.
/on.ft.com/3cfemYL

The US government just launched a big push to fill cybersecurity jobs, with salaries to match
Liam Tung – ZDNet
The US Department of Homeland Security, a key cybersecurity agency, has just announced a new system that will help it recruit, develop and retrain cybersecurity pros in the federal government.
The DHS’s new recruitment system, dubbed the Cybersecurity Talent Management System (CTMS), launches amid a tight labor market for cybersecurity professionals who are in extremely high demand and can therefore command big salaries.
/zd.net/3kHbfNW

How to Protect Yourself from Ransomware Attacks, According to Cybersecurity Experts and Victims
Inc.com
Every 11 seconds, business servers–even small-business servers–are infiltrated by hackers who encrypt their data and hold it hostage. Victims have few good options: You can pay the ransom, which might run into millions of dollars, but your data–and your reputation–might be beyond repair. Backups may save you, but you could lose weeks rebuilding, and your attackers may leak sensitive information in the meantime. Here, founders who have been hacked, along with a slew of cybersecurity experts, explain what you need to know to keep yourself from joining their ranks. –As told to Rebecca Deczynski, Kevin Ryan, and Brit Morse.
/bit.ly/3qIpRjW

Demand for qualified cybersecurity workers is soaring
The Seattle Times
Ransomware has become a multibillion-dollar industry. Instead of kidnapping a person, cybercriminals place malicious software on computer systems blocking their use until a monetary ransom is paid. Globally, 68.5% of businesses suffered a ransomware attack this year, according to Statista.
Organizations lose $17,700 every minute due to phishing. Designed to trick people into revealing sensitive data via email, Google had identified more than 2 million phishing sites as of January 2021.
/bit.ly/3FjnSXs

Alan Paller, a Mover on Cybersecurity Threat, Is Dead at 76; He made it his mission to find, recruit and develop the next generation of digital warriors to defend the nation against an onslaught of cyberattacks.
Nicole Perlroth – NY Times
Alan Paller, a cybersecurity pioneer who devoted his life to improving the digital defense of the United States, died on Nov. 9 at his home in Bethesda, Md. He was 76. His death was confirmed by the SANS Institute, the organization he founded in 1988. The cause was not specified.
/nyti.ms/3ClxMGd

Cryptocurrencies

Flush with cash, crypto market makers are the new places to be
Sarah Butcher – Efinancial Careers
Forget hedge funds. Maybe even forget working for established electronic market makers like Jane Street and Citadel Securities. In the new world order, it’s all about working for a crypto market making firm. As crypto and decentralized finance take off, headhunters say crypto market making firms are adding top people from across the market and hedge funds are being left in the
/bit.ly/3wP5Bhz

Satoshi Nakamoto’s $64 billion Bitcoin stake is the focal point of a Florida trial — here’s what’s going on
Grace Kay – Business Insider
The mystery behind the creator of Bitcoin and their over $64 billion stake has spawned a court case in Florida. The family of a deceased man, David Kleiman, is claiming their family member helped create the popular digital currency and is suing Kleiman’s alleged business partner in the endeavor, Craig Wright, for half of the $64 billion stake, The Wall Street Journal reported.
/yhoo.it/3ceWfCf

Solana becomes the 3rd crypto that can be tracked on the Bloomberg terminal after bitcoin and ethereum
Natasha Dailey – Business Insider
Solana is now the third cryptocurrency to be tracked by the Bloomberg terminal, following in the footsteps of bitcoin and ethereum. The price tracker, titled “Bloomberg Galaxy Solana Index,” went live on the terminal Monday as “the first institutional grade pricing source for Solana,” wrote Tim Grant, the head of Europe at Galaxy Digital, which partnered with Bloomberg to list the new crypto. Bloomberg did not immediately respond to Insider’s request for comment.
/yhoo.it/3kF1GPP

Novogratz’s Galaxy Digital Expects U.S. Stock Listing in First Quarter
Olga Kharif – Bloomberg
Crypto firm had estimated it would gain listing this quarter; Galaxy managed about $3.2 billion in assets at end of October
Galaxy Digital Holdings Ltd., the cryptocurrency firm controlled by billionaire Michael Novogratz, expects to be listed on a U.S. exchange in the first quarter of next year, later than initially estimated.
/bloom.bg/3ChE4qf

Abra Launches Crypto Perx (CPRX) Token With Airdrop to Customers; Utility Token Will Reward Customers for Their Loyalty and Maximize Yield
Abra
Abra, a leading wealth management platform for cryptocurrency investors, announced that today, it will begin airdropping a new utility token, Crypto Perx (CPRX), to its customers as part of the recently launched Abra Perx Rewards Program. The utility token, created by the newly formed Crypto Banking Alliance (CBA), is the backbone of the Abra Perx program. Abra Perx is Abra’s new rewards program designed to maximize yield for Abra customers and recognize them for their loyalty while creating new opportunities for engagement on the Abra platform.
/bwnews.pr/3HrYjFq

Bitcoin at Starbucks Is More Meme Than Money; The ability to trade cryptocurrency for coffee is no justification for market froth.
Lionel Laurent – Bloomberg
It’s not often you hear someone brag about buying coffee with “money” — unless you’re moving among Bitcoin circles. Being able to use the cryptocurrency at chains like Starbucks Corp. and Pizza Hut is being touted as a payments revolution by the looks of various selfies and videos coming out of El Salvador. President Nayib Bukele established Bitcoin as legal tender in the country (alongside the U.S. dollar) in September as a bid to lure digital wealth.
/bloom.bg/3nmSLE4

China Warns State Firms on Crypto Mining, Mulls Punitive Steps
Bloomberg News
China told its state-owned enterprises to stop cryptocurrency mining and said it’s considering punitive measures in the form of higher power prices on companies that defy the ban.
/bloom.bg/3nkEiZB

Treliant Adds Cryptocurrency Advisor Michael Saxon to Expand Blockchain and Virtual Currency Services
Treliant
Washington, DC | Michael Saxon has joined Treliant as Senior Director, to expand the firm’s blockchain and cryptocurrency advisory services. Michael regularly advises consultants and clients on blockchain technologies and virtual currencies, and he has led projects supporting many of the most prominent companies in the cryptocurrency market.
/yhoo.it/3Dphb5z

Cryptocurrencies: how regulators lost control
FT
Leading voices from the cryptocurrency industry, including Binance CEO ‘CZ’ and Sam Bankman-Fried of FTX, and Financial Times reporters tell the story of how the cryptocurrency industry ballooned into a market worth more than $2tn with little regulatory oversight. How did regulators lose control and can they get a grip now? Or is there a danger that overregulation stifles innovation?
/on.ft.com/3niiIF1

Twitter CFO Says Investing in Crypto ‘Doesn’t Make Sense Right Now’; Ned Segal sees social-media firm’s subscription revenue growing
Nina Trentmann – WSJ
Investing some of Twitter Inc.’s corporate cash in crypto assets such as bitcoin “doesn’t make sense right now,” Chief Financial Officer Ned Segal said in an interview Monday. “We [would] have to change our investment policy and choose to own assets that are more volatile,” Mr. Segal said, adding that the company prefers to hold less volatile assets such as securities on its balance sheet.
/on.wsj.com/3CgYOON

Politics

Biden Could Revisit Renewable Fuel Mandate to Give Drivers Relief at Pumps
Gerson Freitas Jr and Sheela Tobben – Bloomberg
Reduced blending obligations could drive fuel prices down; Move could jeopardize climate efforts and spark farmers anger
As U.S. President Joe Biden weighs alternatives to lower fuel prices, one move that could bring immediate relief at the pumps is sparking debate: adjusting the Bush-era renewable fuel mandate.
/bloom.bg/3wNIpAv

German agency suspends approval process for Russia pipeline
Associated Press
Germany’s network regulator said Tuesday that it has suspended its procedure to certify the operator of a new pipeline that would bring Russian gas to the country under the Baltic Sea because of an issue with the company’s status under German law.
/yhoo.it/3HBzTto

Russia’s Biggest Move Yet To Take Control Of The European Gas Market
Editor OilPrice.com
A deal finalized last week to develop Iran’s multi-trillion dollar new gas discovery, the Chalous field, will see Russian companies hold the major share in it, followed by Chinese companies, and only then Iranian ones, sources close to the deal exclusively told OilPrice.com. This is despite Chalous’s position unequivocally within the Iranian sector of the Caspian Sea, over which the Islamic Republic has complete sovereignty. Billions of dollars in additional capital investment are scheduled to come from financial institutions in Germany, Austria, and Italy, as the indications are that the size of Chalous’s gas reserves are even greater now than initially thought. According to one of the senior Russian officials involved in negotiating the deal: “This is the final act of securing control over the European energy market.”
/yhoo.it/3qHhaGx

Nord Stream 2 Faces Delay After Approval Process Suspended
Dina Khrennikova, Vanessa Dezem and Olga Tanas – Bloomberg
Russia’s controversial Nord Stream 2 pipeline faces another delay after Germany suspended a key step in the approval process, sending European gas prices surging as much as 12%.
/yhoo.it/3HtiwLe

Kraken subsidiary Crypto Facilities receives FCA approval in the UK
Tim Copeland – The Block
Crypto Facilities, a wholly owned subsidiary of crypto exchange Kraken, has been granted a MLR license with the U.K.’s financial regulator, the Financial Conduct Authority (FCA).
/bit.ly/3wPCbA7

Pricing in global hybrid warfare; How following the money is the only way to cut through the strategic weaponisation of ambiguity.
Izabella Kaminska – FT
Here at FT Alphaville towers we don’t pretend to be geopolitical experts. We are generalists who like to sweep into subjects intensively as and when they become market relevant. But one thing we do think we are pretty good at is homing in on Titanic-sized blind spots before they become broadly acknowledged fact.
/on.ft.com/3Dmoo6x

Dutch government rushes to keep Shell in Netherlands; Last-ditch push to scrap dividend tax that has been cited by energy group as reason for planned UK move
Mehreen Khan and Tom Wilson – FT
The Dutch government has launched an eleventh-hour attempt to keep Shell in the Netherlands by seeking to abolish a controversial dividend tax cited by the energy group as a reason to unify its share structure and move its headquarters to the UK.
/on.ft.com/3CodcVD

Regulation

The Efficient and Scalable Answer to CFTC Reporting Compliance
ISDA
We’re now about six months away from implementation of part of the US Commodity Futures Trading Commission’s (CFTC) revised swap data reporting rules, making it the first regulator to amend its reporting framework to incorporate globally harmonized data elements intended to improve the consistency and accuracy of reported data. That’s an important and welcome step, but, as with any new or amended rule, this does come with compliance challenges – not least, the need for each firm to accurately interpret the requirements and build the relevant changes into their reporting systems…
/bit.ly/3qITce7

Marathon Receives SEC Subpoena Related to 2020 Hardin Data Center Agreement; Shares Tumble
Aoyon Ashraf – Coindesk
Marathon Digital Holdings (MARA) executives received a subpoena from the U.S. Securities and Exchange Commission (SEC) to produce documents and communications concerning its Hardin, Montana, data center facility, the company said in a 10Q filing
on Monday.
/yhoo.it/30wWwhG

How do you do fellow kids?: Regulators aim to boost bona fides with young investors; Plus, Twitter crashes the crypto party while the SEC says no to bitcoin ETF
Siddharth Venkataramakrishnan – FT
Greetings from London, readers! I’m the FT’s new(ish) banking and fintech reporter, a role in which I’ll be covering topics ranging from “buy now, pay later” and the future of cash to stablecoins and green fintech. As Imani said in last week’s newsletter, I’m delighted to be taking turns co-editing FintechFT with her.
/on.ft.com/3wSHkaH

Chinese agricultural producer fined $300,000 for breaching financial reporting and company officer obligations
ASIC
Dongfang Modern Agriculture Holding Group Limited (A.C.N. 604 659 270) has been fined $300,000 by the Downing Centre Local Court for failing to meet its financial reporting obligations and to have the required number of company officers.
/bit.ly/3DoqFxU

Opening statement to the inquiry into the Sterling Income Trust; Opening statement by ASIC Chair Joseph Longo at the inquiry into the Sterling Income Trust, Canberra, 16 November 2021.
ASIC
Thank you for the opportunity to appear here today at the first hearing into the Sterling Income Trust. I appear with Commissioner Cathie Armour and Senior Executive Leader, Dr Rhys Bollen.
/bit.ly/3nltk5T

ASIC files contempt application against James Mawhinney
ASIC
ASIC has today filed a contempt application in the Federal Court against James Mawhinney, the director of companies in the Mayfair 101 group. On 19 April 2021 Mr Mawhinney was ordered by the Federal Court to stop raising funds through financial products for 20 years (21-076MR). ASIC alleges Mr Mawhinney failed to comply with these orders.
/bit.ly/3njsNBu

Daniel R. Gregus Named Director of Chicago Office
SEC
The Securities and Exchange Commission today announced that Daniel R. Gregus has been named Director of the Chicago Regional Office, where he has served as acting co-director since June. Mr. Gregus is a 28-year veteran of the SEC and has held leadership roles in both the Division of Enforcement and the Division of Examinations. He has most recently served as the Associate Director of the National Clearance and Settlement Examination Program as well as the Associate Regional Director for the Broker-Dealer and Exchange Examination Program in the Chicago Regional Office.
/bit.ly/3ch6GoX

Investing and Trading

Futures Expiration Puts Global Bond-Market Liquidity to the Test
Edward Bolingbroke – Bloomberg
The erosion of liquidity in the U.S. Treasury market is causing headaches in the futures market, where the quarterly process of swapping expiring contracts for new ones is under way and set to ramp up over the next week.
/yhoo.it/3wWqqrx

Trading Giant Trafigura Says $100 Oil Possible on Tight Supply
Sharon Cho and Saket Sundria – Bloomberg
The oil market is “very, very tight” and $100 a barrel is probably on the cards in the longer term, according to Jeremy Weir, chief executive officer and chairman of energy trading giant Trafigura Group.
/yhoo.it/3x4vZV7

Greenspan’s Conundrum Has Returned to Haunt Markets; The combination of declining 10-year bond yields and rising inflation points to a future of financial repression and the inescapability of buying stocks.
John Authers – Bloomberg
Conundrum 2.0
Back in 2005, the then-chairman of the Federal Reserve, Alan Greenspan, complained of a conundrum. He had hiked the Fed’s target rate six times, by a total of 150 basis points, and yet he had barely budged the 10-year Treasury yield. It remained steady, and continued its gently declining trend.
/bloom.bg/3wZ0BqY

Musk Exercises Options, Sells $930 Million More Tesla Shares
Cecile Vannucci – Bloomberg
CEO has offloaded about $7.8 billion worth of stock this month; Some of the sales were to pay taxes on exercised options
Elon Musk exercised options and offloaded more Tesla Inc. shares, continuing a streak of sales that helped tank the stock last week by the most since March 2020.
/bloom.bg/3CpSKDM

Prepare to Live on $33,000 a Year If You Retire With a $1 Million Portfolio; The so-called safe withdrawal rate should shrink to 3.3% from 4%, according to a Morningstar report.
Suzanne Woolley – Bloomberg
A rule of thumb for how much U.S. retirees can “safely” withdraw each year without fear of outliving their savings just got a haircut.
/bloom.bg/3ngu9Nn

Investors scrutinise green claims in $80bn sustainability bond market; ‘Tremendous promise’ tempered by small penalties for failure to hit ESG targets
Joe Rennison – FT
The market for sustainability-linked bonds has boomed to reach $80bn in issuance this year, even as some investors question the ‘green’ credentials of the debt that can be used to finance a broad array of corporate initiatives.
/on.ft.com/3wSGSt1

Environmental, Social and Corporate Governance

What’s Wrong With ESG Investing as Explained Through the Medium of Ohio
Tracy Alloway – Bloomberg
What is Fifth Third Bancorp? By most accounts, it’s a regional bank based in Cincinnati. Descended from the Bank of the Ohio Valley founded in 1858 to service an influx of western-bound settlers and then merged with a succession of local lenders in subsequent decades, the company has grown to become the quintessential mid-sized bank for Middle America.
/bloom.bg/3Cp6X3M

Boardroom Quotas in Europe Veil a Bigger Obstacle to Equality
Lisa Pham – Bloomberg
Number of female directors declined at BHP, Swedbank and abrdn; Female board representation on Stoxx 600 broadly unchanged
Focusing on gender equality in boardrooms may not be enough to ensure women are adequately represented in the upper echelons of corporate life.
/bloom.bg/3wUCcCW

EU carbon prices hit record high after COP26; Industry gauge rose 2.6% on Tuesday and is more than double its level at start of year
David Sheppard – FT
European carbon prices jumped to an all-time peak above EUR66 a tonne as traders bet that the outcome of the COP26 climate talks was likely to strengthen emissions markets that are seen as a key tool of decarbonisation.
/on.ft.com/3wOXp13

Shell cannot outrun the climate pressure; Dutch courts have become hostile to oil groups but this does not explain the UK shift
Helen Thomas – FT
Shell’s decision to simplify its dual share structure and move its tax base and senior management from the Netherlands to the UK is a sensible strategic move that looks very much like a fit of pique.
/on.ft.com/30vqh1Z

Institutions

Point72 Raises $600 Million for AI-Assisted Private Equity Fund
Hema Parmar and Will Louch – Bloomberg
Steve Cohen’s Point72 Asset Management raised $600 million for its first private equity fund that will use artificial intelligence to modernize and improve efficiencies at companies it acquires.
/yhoo.it/3wPBqHc

Bankers and Traders Are Poised for Their Biggest Bonuses Since the Financial Crisis
Hannah Levitt – Bloomberg
Banks are poised to hand investment bankers and traders their biggest bonuses since the financial crisis, with hopes the cash will stem the high levels of turnover sweeping across Wall Street.
/yhoo.it/3wPHgs5

JPMorgan Sues Tesla for $162 Million Over Unpaid Warrants
Joe Schneider and Robert Burnson – Bloomberg
JPMorgan Chase & Co. sued Tesla Inc. seeking a $162 million payment for warrants that expired above their strike price, which had been muddied by Elon Musk’s tweet in 2018 threatening to take the company private.
/yhoo.it/3kHzb3H

Big Short’s Burry Deletes Twitter Account After Musk Spat
Eric Lam – Bloomberg
Michael Burry has deleted his Twitter account once again, shortly after “The Big Short” investor disclosed he ditched some of his biggest bearish bets. A search for Burry’s account, @michaeljburry, on the Twitter.com website showed the account no longer exists. Burry has repeatedly deleted and reactivated his account in recent months.
/yhoo.it/3wPHVK5

Retirement Fund Giant Calpers Votes to Use Leverage, More Alternative Assets; U.S. pensions are hundreds of billions of dollars short of what they expect to need to pay public worker retirement benefits
Heather Gillers – WSJ
The board of the nation’s largest pension fund voted Monday to use borrowed money and alternative assets to meet its investment-return target, even after lowering that target just a few months ago.
/on.wsj.com/3Cl7sMu

Regions

VoxSmart opens APAC office as part of global expansion
VoxSmart Ltd.
VoxSmart Ltd., the global leader in communications surveillance, has today cemented its APAC presence with the opening of a new office in Queenstown, New Zealand, further building on the global growth of the firm over the last year. Based in the heart of Queenstown, the city is an ideal location for VoxSmart’s presence on the ground in the APAC region due to the investment that the city has put into the new innovation hub, with the goal of turning the city into a global leader in technology. This new office will be headed by VoxSmart COO & kiwi native, Adrienne Muir.
/bit.ly/3cjpmEw

Lack of quants dims chance of structured product boom in China; Quants in high demand as banks explore new products, and local rules call for onshore specialists Risk.net montage
Blake Evans-Pritchard, Karen Lai – Risk.net
China’s mass wealth management market could be hugely lucrative, and steps by regulators to liberalise onshore markets create new opportunities for foreign firms to expand their range of structured products. But efforts to grow the business are now hitting what has become a familiar problem in Asia: a shortage of quantitative specialists able to risk-manage such offerings.
/bit.ly/3nl61JG

Miscellaneous

Rise of Tech Spurs Business Schools to Focus on Entrepreneurship; MBAs are becoming popular for would-be founders to fill skills gaps and build their networks.
Chris Stokel-Walker – Bloomberg
Armin Rachwalik founded his first company in 2017 through an accelerator program, seeing an opportunity to provide management and communications software as a service to landlords. The startup, called Mieterland, had a dedicated user base of about 50 clients, but Rachwalik ultimately shuttered the business when the accelerator program ended, unable to find investors to help it grow. He says he wants to take another stab at entrepreneurship someday, but with more skills at his disposal. So the 26-year-old signed up to HEC Paris’s 16-month MBA program to fill the gaps. “There’s a specialization here on innovation and entrepreneurship, and a lot of electives like entrepreneurial finance,” Rachwalik says.
/bloom.bg/30rw9tp

The Worst of Both Worlds: Zooming From the Office; Work life for many is in a mushy middle ground, and what’s at stake isn’t just who is getting talked over in meetings. It’s whether flexibility is sustainable, even with all the benefits it confers.
Emma Goldberg – NY Times
For months, the putt-putt course sat unused. The beanbag chairs lay empty. The kitchen whiteboard, above where the keg used to live, displayed in fading marker “Beers on Tap” from a happy hour in March 2020. But on a recent weekday, over in the common area was a sign of life — fresh bagels.
/nyti.ms/2YS5423

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