Cboe Global Markets Becomes Morningstar’s Preferred Index Distributor

Jun 2, 2022

First Read

Hits & Takes
John Lothian & JLN Staff

FIA President and CEO Walt Lukken wrote to JLN to share this comment on the story yesterday in Bloomberg titled “Crypto Goes Shopping for a Regulator It Can Push Around” by Max Chafkin. Here is Walt’s comment:

“As a former member of the Commission, I was shocked but not surprised by yesterday’s Bloomberg story, “Crypto Goes Shopping for a Regulator It Can Push Around.” For those of us who have been around, the story is a familiar one that implies that the CFTC is lax on regulation and a push-over agency that bends to industry pressure. That is simply not the case. I know because of the seven years I spent working with the dedicated staff of the agency as well as two years I ran a CFTC-registered clearinghouse that faced the scrutiny of the CFTC and its regulations. I can tell you firsthand that the Commission takes seriously their mission to uphold the integrity of the markets while promoting responsible innovation and fair competition. The irony of this story is that it comes in the shadow of the largest fine–$1.2 billion—against a market participant in the CFTC’s history. Real softies. The reason FTX is coming to the CFTC is its desire to be regulated by an agency that really knows markets well. After all, this is the agency that first approved the launch of financial futures, carbon credits, Eurodollars, stock indices, and yes even bitcoin. I applaud Sam Bankman-Fried for coming in the front door of the US regulatory system and seeking CFTC registration. As Sam will tell you, the process is anything but a cakewalk. In fact, FIA has expressed concerns with their proposal for various reasons. That said, I felt yesterday’s Bloomberg article was unfair to the agency and to FTX, and I felt compelled to set the record straight.”

The SEC posted several videos to its Youtube channel under the Investomania public service campaign. The subjects included “Meme Stocks,” “Crypto,” “Margin” and “Easy Money” and used a game show concept to educate investors in a playful way. Barron’s has a story about the videos under the title “The SEC Sends a Warning About Meme Stocks. Reddit Traders Aren’t Happy.”

The FT’s take on it was very British, with the title “Investomania; What fresh hell is this.” Needless to say, Robin Wigglesworth did not find the SEC’s education effort to be very effective.

Longtime Chicago trader and philanthropist George Hanley has made a substantial gift to the University of Miami’s “Ever Brighter: The Campaign for Our Next Century,” and established “The George P. Hanley Democracy Center” and “The George P. Hanley Endowed Chair in Democracy.”

Hanley, whose father was hired at the CBOT in 1923, has always worked to give back and this is his latest effort. He has previously given the University of Dayton considerable sums and he served on their board of trustees for 14 years. Hanley told me he is a big believer in the value of civil debate and dialogue to help solve problems and exchange ideas in the political realm.

He is quoted in the University of Miami news magazine announcing donations to the Ever Brighter campaign saying: “The intention behind this gift was the hope to create a platform for dialogue and different political viewpoints. There must be civil discourse in our democracy. We need to learn how to cherish and appreciate the democracy that we have and give everyone a platform to voice their own opinions, concerns, and ideas.”

Efforts and leadership like this from George Hanley give me hope for the present political situation in the U.S.

Cboe Global Markets has completed the acquisition of NEO. I am just wondering when the Keanu Reeves marketing campaign is going to start. Maybe this is why Ed Tilly said at the Boca press breakfast that Cboe has already considered virtual reality trading. Spoiler: you have to be a Matrix movie fan to understand.

Correction: Regarding the IMX mention in yesterday’s Hits & Takes, Phupinder Gill and Kim Taylor are strategic advisors to the Intelligent Medicine Exchange, and Felix Carabello is on staff as chief commercial officer. Our Hits & Takes section on Wednesday stated their roles incorrectly. We apologize for the error.

Have a cup of coffee this morning. It is good for you. According to a New York Times story, coffee drinking is linked to lower risk of dying for those who drank moderate amounts of coffee. This is true even for those silly people who put sugar in their coffee.

CQG’s Pat Kenny has raised 61% of his goal for the Kilt Challenge. Have you given to his campaign yet? He needs your support. Please support Pat in his efforts to raise money for Futures for Kids. You can donate HERE.

JLN has hired a new contractor to contribute to The Spread, Alex Teng. Alex is a finance major at the University of Illinois-Chicago and a former student of Sally Duros, who is also a JLN contractor. Alex will be exploring options starting from the beginning and trying to help his fellow students and other young people understand derivatives better and not be afraid of them. He will start in a couple of weeks.

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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Rival Systems CEO Rob D’Arco Sees Traders Making the Jump to Professional Ranks
JohnLothianNews.com

JLN interviewed Rob D’Arco, CEO of the software vendor Rival Systems, during the 2022 Options Conference in San Antonio, Texas, about the state of Rival and the industry. He was bullish on many of today’s retail traders making the leap to become professional traders in the future.

Watch the video »

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Tech experts urge Washington to resist crypto industry’s influence; Computer scientists and academics target US lawmakers in effort to counter well-financed lobbying efforts
Scott Chipolina – FT
A group of renowned technologists has joined forces to urge US lawmakers to crack down on the burgeoning cryptocurrencies industry, marking the first concerted effort to counter well-financed lobbying by blockchain companies. Harvard lecturer Bruce Schneier, former Microsoft engineer Miguel de Icaza and principal engineer at Google Cloud Kelsey Hightower, are among 26 leading computer scientists and academics who have signed a letter delivered to US lawmakers heavily criticising crypto investments and blockchain technology.
/jlne.ws/3GENVdF

***** Money talks. Experts explain. ~JJL

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How to Push Wall Street to Ditch Fossil Fuels for Clean Energy
Alastair Marsh – Bloomberg
The invasion of Ukraine has put the US and Europe on a wartime mission to abandon Russian fossil fuels. This series looks at speeding up zero-carbon alternatives by lowering political and financial barriers. Sign up here to get the next story sent to your inbox. It will cost more than the gross domestic product of the entire world to rewire the global economy to run on clean energy.
/jlne.ws/3m55zh4

***** One does not push Wall Street. They are to be cajoled and enticed. ~JJL

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BNP Paribas Plans to Lure NYC Workers Back With Redesigned Offices; Overhaul includes new trading floors, bike room and baristas; Bank has been at its Seventh Avenue building since 1986
Natalie Wong – Bloomberg
BNP Paribas SA is overhauling its New York City regional headquarters to appeal to workers in a post-pandemic era. The bank’s name has been unveiled on the tower at 787 Seventh Ave., previously known as the Axa Equitable Center, according to a statement Wednesday. Paris-based BNP’s redesigned offices include new trading floors with curved monitors, sit-and-stand desks, more lighting and higher ceilings.
/jlne.ws/3x6ogqZ

***** Redesigning it to look like the workers’ living rooms was going just a little too far.~JJL

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Crypto’s Value Comes From Crypto’s Volatility; Investors don’t necessarily want stable prices, which helps explain the appeal of assets such as Bitcoin.
Tyler Cowen – Bloomberg
One of the most difficult challenges in finance is how to price crypto assets. Bonds pay interest. Stocks pay dividends. What exactly do crypto assets pay? Well, other people value them too, but what does that depend upon? How can crypto valuations be connected to something real? The executive summary of my current thinking goes something like this: The value of crypto assets comes from a few core uses — plus, and this is crucial, how much investors value the volatility of crypto assets. It is this latter feature which explains much of the day-to-day price shifts of crypto.
/jlne.ws/3xanfhF

****** I disagree with this conclusion. The value comes from its marginal use as a means to launder money compared to other methods.~JJL

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‘We’re playing with fire’: US Covid cases may be 30 times higher than reported
Melody Schreiber – The Guardian
The United States is now in its fourth-biggest Covid surge, according to official case counts – but experts believe the actual current rate is much higher. America is averaging about 94,000 new cases every day, and hospitalizations have been ticking upward since April, though they remain much lower than previous peaks. But Covid cases could be undercounted by a factor of 30, an early survey of the surge in New York City indicates. “It would appear official case counts are under-estimating the true burden of infection by about 30-fold, which is a huge surprise,” said Denis Nash, an author of the study and a distinguished professor of epidemiology at the City University of New York School of Public Health.
/jlne.ws/3M6tFm5

****** There is a severe undercounting of Covid cases. BEWARE!!~JJL

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Wednesday’s Top Three
Our top story Wednesday was the big announcement, First futures exchange aimed at health care economy has filed for regulatory approval, about the new Intelligent Medicine Exchange (IMX), from the IMX. Second was Bloomberg’s Crypto Goes Shopping for a Regulator It Can Push Around, about Sam Bankman-Fried and FTX. Third was CFTC Considers FTX’s Democratized Clearing Proposal, also about Sam Bankman-Fried and FTX (FTX US, actually).

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MarketsWiki Stats
26,845 pages; 238,673 edits
MarketsWiki Statistics

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Lead Stories

Cboe Global Markets Becomes Morningstar’s Preferred Index Distributor; Cboe to become the preferred third-party distributor of all Morningstar-branded indices; Agreement expected to help broaden access to Morningstar indices for investors globally; Cboe Global Indices Feed is publishing an initial 50 Morningstar-branded indices beginning July 1, with plans to offer the full index suite in the fourth quarter
Cboe Global Markets, Inc.
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced it has entered into an agreement with Morningstar Indexes, a leading global index provider, to begin publishing real-time, intraday values for Morningstar-branded indices on its Cboe Global Indices Feed. With this agreement, Cboe will become the preferred third-party distributor of Morningstar’s full range of branded indices.
/jlne.ws/3x8tJh8

Europe’s Russian Oil Ban Could Mean a New World Order for Energy; The effort could hurt Russia but could also help drive up already high oil prices, hurting the global economy and enriching energy companies.
Clifford Krauss – NY Times
The European Union’s embargo on most Russian oil imports could deliver a fresh jolt to the world economy, propelling a realignment of global energy trading that leaves Russia economically weaker, gives China and India bargaining power and enriches producers like Saudi Arabia.
/jlne.ws/3GLwAzS

SPACs Were All the Rage. Now, Not So Much; For a time, SPACs were the preferred way for companies to go public. But changing market conditions and the threat of regulation are making Wall Street lose its appetite.
Matthew Goldstein – NY Times
Matt Higgins, a former judge on the reality TV show “Shark Tank,” is an experienced investor whose firm, RSE Ventures, helps young companies build their businesses. So it was no surprise that in November 2020, Mr. Higgins embraced one of Wall Street’s biggest recent obsessions by launching a SPAC. Special purpose acquisition companies — known by their acronym — are shell entities that sell shares to the public and use those funds to buy an operating business. Investors get their money back if the SPAC hasn’t found a business to buy within a two-year window.
/jlne.ws/3akq9av

Trades in Russian shares show investors testing the exits
Sinead Cruise and Huw Jones – Reuters
A handful of attempts to privately trade depositary receipts in VTB and Gazprom show how some Western investors are still seeking ways to buy and sell stock in Russian companies rendered near untouchable due to sanctions. Europe, the United States and Canada blocked certain banks’ access to the SWIFT international payment system in March in a raft of sanctions on Moscow following its invasion of Ukraine, leaving investors scrambling to cut their exposure to Russia.
/jlne.ws/38K4Lv8

Stakeholder capitalism is ‘not woke’, says JPMorgan’s Jamie Dimon; Chief executive pushes back against criticism of corporate America’s environmental and social agenda
Joshua Franklin – FT
Jamie Dimon has dismissed claims that stakeholder capitalism is “woke”, pushing back against conservative criticism of the environmental and social agenda that much of corporate America has embraced in recent years. In a freewheeling interview at a conference on Wednesday, the JPMorgan Chase chief executive described himself as “a red-blooded free-market capitalist” and said people had misinterpreted his push for stakeholder capitalism as chair of the Business Roundtable.
/jlne.ws/3x0M91T

CME Group Reports May 2022 Monthly Market Statistics
CME Group
Highest-ever May ADV; 18% increase in ADV year-over-year; 49% growth in Equity Index ADV, driven by record Micro E-mini S&P 500 futures volume; Record SOFR options ADV and OI, and record SOFR futures OI
CME Group, the world’s leading derivatives marketplace, today reported its May 2022 market statistics, showing average daily volume (ADV) increased 18% to 24.3 million contracts during the month. Market statistics are available in greater detail at https://cmegroupinc.gcs-web.com/monthly-volume.
/jlne.ws/3zfAyis

Winklevoss Twins’ Gemini Slashes Staff 10% on Crypto Slump; Layoffs are the first for Gemini, which was started in 2014;
Brothers blame job cuts on ‘crypto winter,’ macro turmoil
Olga Kharif – Bloomberg
Gemini Trust Co., the crypto business run by billionaire brothers Cameron and Tyler Winklevoss, is making its first-ever job cuts, slashing 10% of staff as trading across the industry slumps. “This is where we are now, in the contraction phase that is settling into a period of stasis — what our industry refers to as ‘crypto winter,'” the brothers wrote in a memo sent to employees Thursday that was viewed by Bloomberg News. “This has all been further compounded by the current macroeconomic and geopolitical turmoil. We are not alone.”
/jlne.ws/3m5b8w7

Derivatives associations unite in call for exemptions under CSDR over buy-in concerns; Trade bodies say the current settlement discipline provisions under CSDR have not been drafted with derivatives transactions in mind and call for a revision.
Jonathan Watkins – The. Trade
The two leading trade associations representing the derivatives market have called on the European Commission to include exemptions in its settlement regulation. The Futures Industry Association (FIA) and the International Swaps and Derivatives Association (ISDA) responded to the European Commission’s proposal to review the Central Securities Depositories Regulation (CSDR), in particular with respect to reforms of the mandatory buy-in regime (MBI).
/jlne.ws/3x2EuQO

Russia’s ‘failure to pay’ bond interest triggers credit default swaps; International derivatives panel’s decision paves way for $2.5bn of payouts on insurance-like contracts
Tommy Stubbington – FT
Russia’s failure to pay a slice of interest on one of its bonds will trigger $2.5bn of insurance-like contracts used to protect against debt defaults, according to a panel of derivatives dealers and investors.
/jlne.ws/3afUCXl

CLS appoints ex-Swift CEO Gottfried Leibbrandt as Chair; CLS has appointed Gottfried Leibbrandt as its new Chair, effective 17 May 2022, and succeeding Ken Harvey, who retired after ten years as a member of the Board, eight of which as chair.
Rick Steves – Finance Feeds
The financial market infrastructure delivering settlement, processing and data solutions across the global FX ecosystem has also appointed five new members to its Board of Directors (Board) at the CLS Annual General Meeting. The new directors on the board are Brian Gallagher (JPMorgan Chase), Federica Mazzucato, (UBS Investment Bank), Hari Moorthy (Goldman Sachs), Paolo Muzzarelli (Credit Suisse) and Oliver Stuart (Morgan Stanley). The CLS Board now comprises 21 directors in total, eight of whom are designated as outside or independent directors.
/jlne.ws/3M73P1t

Sheryl Sandberg Stepping Down as COO of Facebook Parent Meta Platforms; Driver of Facebook’s business side for 14 years to remain on board
Salvador Rodriguez – WSJ
Sheryl Sandberg on Wednesday said she would be leaving her role as chief operating officer of Facebook parent Meta Platforms Inc., FB -2.58%? closing out her tenure helping lead one of the world’s most profitable and controversial companies. In a post on her Facebook profile, Ms. Sandberg said she would continue to serve as a member of Meta’s board. In a securities filing, Meta said she informed the company on Saturday of her intention to resign. Ms. Sandberg said her late husband told her she should take the job if she was planning to stay five years, and she stayed for 14.
/jlne.ws/3aj79ZZ

First futures market for health care planned in Chicago
A group is seeking regulatory approval for the Intelligent Medicine Exchange, which could help participants hedge risks from rising medical costs.
David Roeder – The Chicago Sun-Times
Chicago is the historic birthplace of futures contracts tied to grains, stock indexes, interest rates and sundry other assets. How about futures tied to medical procedures or promising new drugs?
Investors and executives have filed for regulatory approval to form the first futures market tied to health care. They’re calling it the Intelligent Medicine Exchange, or IMX, and contend it can help control rising prices.
/jlne.ws/3x3J559

NFT insider trading: former OpenSea marketplace employee arrested, charged
Emre Akkoyun, Kevin Collier – NBC News
A former senior employee at the internet’s largest NFT trading platform has been arrested and named in the government’s first case alleging insider trading of digital assets, the Justice Department said Wednesday. Nate Chastain, the former head of product at New York-based OpenSea, is accused of buying NFTs soon before the company planned to feature them on its homepage, profiting from their exposure and his company’s apparent endorsement, according to the Justice Department.
/yhoo.it/3PYP7MW

The US just brought its first case against NFT insider trading
Scott Nover – Quartz
The US Department of Justice brought its first-ever charges on the insider trading of nonfungible tokens (NFTs) on June 1. It could signal that the government is ready to treat NFTs like traditional financial products. The most popular forum to trade NFTs is called OpenSea, essentially the eBay of NFTs.
/yhoo.it/3mdpE4J

The SEC Sends a Warning About Meme Stocks. Reddit Traders Aren’t Happy.
Connor Smith – Barron’s
A Securities and Exchange Commission’s campaign geared toward educating the public about responsible investing is drawing ire from the Reddit retail investor crowd. In a video posted on the SEC’s YouTube channel, a game show contestant named Brad picks the “meme stock” category and hits the “invest” buzzer. He immediately loses a pile of cash and is hit in the face with a pie. His opponent is rewarded when she says she’s going to do some research first.
/jlne.ws/3m4WRPW

FTX U.S. Seeking Derivatives Brokerage License in Goldman Sachs Tie-up
Martin Young – FX Empire
Goldman Sachs is in talks with the U.S. branch of the FTX cryptocurrency exchange to onboard some of its derivatives products. Citing a ‘person familiar with the matter’ on June 1, Barron’s reported that FTX is seeking a license modification from the Commodity Futures Trading Commission (CFTC). The upgraded license will allow the exchange to act as an intermediary for leveraged derivatives trading, it added. The exchange will handle the collateral and margin requirements internally when borrowed money is used for trading. Currently, brokerages acting as “futures commission merchants” (FCMs) fulfill this role.
/jlne.ws/3m8pxYm

Deutsche Bank CEO’s Fixer Hoops Takes Next Leap as DWS Chief; Hoops takes over DWS in third promotion under CEO Sewing; He’s tasked with resolving probes and keeping growth on track
Nicholas Comfort, Steven Arons, and Eyk Henning – Bloomberg
Six years ago, Stefan Hoops grabbed the attention of Deutsche Bank AG management board member Christian Sewing with his cool head and proactive approach during a time of crisis. As the threat of a costly settlement in the U.S. was spooking investors and key clients, the young executive was among Deutsche Bank leaders putting in a barrage of calls to assure them the firm was safe to do business with.
/jlne.ws/3mcNgXa

A Quiet Ex-Banker Shocks Markets With ‘Socialist’ Tilt in Japan; Prime Minister Fumio Kishida has unnerved investors with talk of a ‘new capitalism’ to address income inequality. How far will he go?
Gearoid Reidy and Yuko Takeo – Bloomberg
When Fumio Kishida became Japan’s 100th prime minister, the low-key former banker was the ruling party’s most ­moderate—even boring—­candidate. But in financial markets he delivered a shock. Kishida, who’s highlighted the problem of growing income disparities for years, panicked investors in October, during the week of his inauguration, with talk of redistributing wealth and raising wages and ­capital- gains taxes. “Kishida Shock” trended on Twitter. The Nikkei 225 Stock Average posted its longest losing streak in more than a decade. Although he backed away from the tax idea, Kishida continues to promote a “new form of capitalism” that he says will address inequality and climate change.
/jlne.ws/3apoZur

Eric Boess: The future of the market in Europe; Global head of trading at Allianz Global Investors, Eric Boess, speaks to The TRADE about shifting market structure, the retail segment and consolidation.
Laurie McAughtry – The Trade
How do you feel changing market structure and price formation in equities is impacting institutional investors?
This is a classic question that’s asked at every TradeTech conference, and it brings up the key question: what actually has happened since last year? To be frank, there hasn’t been an awful lot of change. There have been no major developments in terms of consolidation on the exchange side, or in terms of market participants. If anything, fragmentation is probably still an issue, and Brexit has added to the complexity. But these have had limited impact because both the UK and Europe are currently redefining their frameworks. I think that will have an impact at a later point in time, but I don’t see a fundamental change in how we trade now versus last year.
/jlne.ws/3taT7Aa

Ukraine Invasion

Russia’s last-minute bond payment to avoid default still wasn’t enough, triggering a failure-to-pay event, credit panel rules
Phil Rosen – Business Insider
The Credit Derivatives Determinations Committee determined that Russia triggered a “failure-to-pay” event after breaching the terms of a bond payment. Early last month, Russia paid $649 million to bondholders on debt that was due April 4. After originally trying to pay in rubles amid Western sanctions, Moscow paid in dollars just before a month-long grace period was about to expire. But Russia failed to include $1.9 million in interest that accumulated during the grace period, triggering credit default swaps that could lead to a payout of as much as $3.2 billion in debt, Bloomberg reported Wednesday.
/jlne.ws/3M4iQBf

Documents Reveal Hundreds of Russian Troops Broke Ranks Over Ukraine Orders; Desertions and refusal to engage in the invasion have put Moscow in a bind over how to punish service members without drawing attention to the problem
Matthew Luxmoore – WSJ
Hundreds of Russian soldiers have escaped the fighting in Ukraine or refused to take part during the early stages of the war, according to military decrees viewed by The Wall Street Journal as well as accused soldiers and lawyers defending them. Military analysts and Ukrainian officials say there have been many more. Russia’s army stumbled badly early in its invasion of Ukraine and suffered thousands of casualties and the loss of an estimated quarter of its deployed military hardware, a senior Pentagon official said in April. Desertions and insubordination among soldiers, Interior Ministry troops and members of the National Guard are compounding the problem.
/jlne.ws/3NNVIbf

Russia trying to “extinsguish civilisation” in Donbas – Germany’s Baerbock
Thomas Escritt – Reuters
Russia has adopted a strategy of flattening settlements from a safe distance in Ukraine’s Donbas region, German Foreign Minister Annalena Baerbock said, making it all the more important for Berlin to send Kyiv defensive weapons. In a speech to the German parliament on Wednesday, she said Russia was fighting a war to “depopulate and extinguish civilisation” in the eastern Ukrainian region. “City by city, village by village, Russian troops are destroying them from a safe distance,” she said. “First the missiles, then the warplanes with artillery, and then, when everything is flattened, the tanks roll in.” Germany needed to send more artillery, drones and air defence weapons to help Ukraine defend itself from this onslaught, she added.
/jlne.ws/3GEHcAq

‘Everything is gone’: Russian business hit hard by tech sanctions; Export controls placed on supply of chips and hardware over Ukraine war dent economy’s prospects
Anna Gross and Max Seddon – Financial Times
Russian companies have been plunged into a technological crisis by western sanctions that have created severe bottlenecks in the supply of semiconductors, electrical equipment and the hardware needed to power the nation’s data centres. Most of the world’s largest chip manufacturers, including Intel, Samsung, TSMC and Qualcomm, have halted business to Russia entirely after the US, UK and Europe imposed export controls on products using chips made or designed in the US or Europe. This has created a shortfall in the type of larger, low-end chips that go into the production of cars, household appliances and military equipment.
/yhoo.it/3PPrV3M

EU Push for Partial Russian Oil Ban Delayed by Hungary’s Demands; Budapest is seeking more exemptions to proposed sanctions
Bloc’s ambassadors may discuss the package again on Thursday
Alberto Nardelli, Ewa Krukowska, and Zoltan Simon – Bloomberg
European Union efforts to approve a partial ban on Russian oil imports hit an obstacle after Hungary raised new or already rejected demands, further slowing a push to clinch a deal, according to people familiar with the negotiations.
/jlne.ws/3z7HIVQ

Arabia ready to pump more oil if Russian output sinks under ban; Riyadh aware it must not ‘lose control’ of oil prices as energy sanctions hit Moscow
David Sheppard, Samer Al-Atrush and Derek Brower – FT
Saudi Arabia has indicated to western allies that it is prepared to raise oil production should Russia’s output fall substantially under the weight of sanctions, according to five people familiar with the discussions. The kingdom has resisted calls from the White House to accelerate production increases despite oil prices trading near $120 a barrel, the highest level in a decade, arguing that the energy crunch could get significantly worse this year. Saudi Arabia believes it needs to keep spare production capacity in reserve. But fears of outright supply shortages have risen after the EU launched another round of sanctions against Moscow, including a ban on importing seaborne cargoes of Russian oil into the bloc.
/jlne.ws/3NaZrje

Insurance ban to tighten squeeze on Russian oil shipments; Targeting of cover for seaborne crude widens scope of EU and UK sanctions on Moscow
Ian Smith and Harry Dempsey – FT
Brokers and underwriters gathered this week in Lloyd’s of London’s historic underwriting room to celebrate the Queen’s platinum jubilee, twice ringing the Lutine bell — a symbol of the insurance market’s shipping roots that was traditionally struck once to mark a lost vessel and twice for its safe return.
/jlne.ws/3Nb8G39

Exchanges, OTC and Clearing

Cboe Global Markets Completes Acquisition of NEO, Strengthening Global Equities and Listings Offerings
PR Newswire
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced it has acquired NEO, a fintech organization comprised of a fully registered Canadian securities exchange (NEO Exchange) with a diverse product and services set ranging from corporate listings to cash equities trading and a non-listed securities distribution platform (NEO Connect).
/jlne.ws/3ahxdoC

OCC May 2022 Total Volume Up 19.7% Year-Over-Year, Highest May on Record
OCC
OCC, the world’s largest equity derivatives clearing organization, announced today that year-to-date average daily volume through May 2022 was 41.7 million contracts, up 6.0 percent compared to year-to-date average daily volume through May 2021. Total volume was 866.5 million contracts, up 19.7 percent compared to May 2021.
/jlne.ws/38Gx5OP

Helen Lofthouse appointed managing director and CEO of ASX
ASX
Attached is a market announcement regarding the appointment of Helen Lofthouse as Managing Director and Chief Executive Officer of ASX Limited.
/bit.ly/3sGw54D

BME Clearing to be connected to the Swiss Central Securities Depository
BME
BME Clearing opens an account with the Swiss Central Securities Depository, another step forward in the integration of BME into SIX. From now on, BME Clearing members who are SIX SIS participants can post securities collateral through this platform.
/bit.ly/3MaeNDp

BME admits a new 500 million euro Green Bond from ICO
BME
The issue, with a coupon of 1.30% and maturity in October 2026, will be used to finance sustainable projects from Spanish companies driving ecological transition; This placement brings the volume of ESG bond issues in BME’s fixed-income markets to near 100 billion euros
BME’s AIAF Market has admitted to trading a new 500 million euro Green Bond issued by Instituto de Crédito Oficial (ICO). The issue, which is aimed at financing sustainable projects from Spanish companies that boost ecological transition, matures in October 2026 and has a coupon of 1.30%. This is the second issue to be repatriated to Spain by ICO under its bonds programme.
/bit.ly/3NNni8t

Boerse Stuttgart records May turnover of around EUR 7,3 billion; Securitised derivatives show increase in trading volume compared to the same month of the previous year; Based on the order book statistics, Boerse Stuttgart generated turnover of around EUR 7,3 billion in May.
Mondovisione
Securitised derivatives made up the largest share of the turnover. The trading volume in this asset class increased over 6 percent compared to the same month of the previous year to around EUR 3,4 billion. Leverage products generated turnover of over EUR 2,5 billion. Investment products contributed around EUR 862 million to the total turnover.
/bit.ly/3aidG7w

CLS appoints new Board chair and five new Board directors
Mondovisione
CLS, a financial market infrastructure delivering settlement, processing and data solutions across the global FX ecosystem, announced that a new chair and five new members have been appointed to its Board of Directors (Board) at the CLS Annual General Meeting on 17 May 2022. Gottfried Leibbrandt has been appointed as CLS’s chair, effective 17 May 2022, and succeeds Ken Harvey, who retired after ten years as a member of the Board, eight of which as chair.
/jlne.ws/3M73P1t

https://bit.ly/3NOob0B

EBS Market on CME Globex Notice
CME Group
Topics in this issue include: Critical Information; Product Changes;
Announcements and Additional Resources.
/bit.ly/3PPZTFv

Exchange-Recognized Eurodollar Options vs Three-Month SOFR Options UDS on CME STP
CME Group
Effective this Sunday, June 5 (trade date Monday, June 6), a new exchange-recognized Eurodollar options vs Three-Month SOFR options UDS will be available for trading on CME Globex and submission for clearing via CME ClearPort.
/bit.ly/3m4QAUz

Cash market sales statistics for May
Deutsche Börse
A trading volume of EUR161.6 billion was achieved on Deutsche Börse’s cash markets in May (previous year: EUR157.6 billion).
/bit.ly/3aiIvbT

Forfeiture of Unclaimed Final Dividend for 2015
HKEX
On 8 April 2022, Hong Kong Exchanges and Clearing Limited (“HKEX”) announced that,
pursuant to HKEX’s Articles of Association, the final dividend for 2015 of HK$2.87 per share,
payable on 2 June 2016 and remaining unclaimed on 2 June 2022, would be forfeited and
would revert to HKEX. Accordingly, the unclaimed final dividend for 2015 amounting to
HK$14,363,177.55 is forfeited and reverts to HKEX today.
/bit.ly/3PVVCjE

HKEX – Participant & Members Circulars
United Nations Sanctions (Yemen) Regulation 2019 (Amendment) Regulation 2022
United Nations (Anti-Terrorism Measures) Ordinance
United Nations Sanctions (ISIL and Al-Qaida) Regulation
HKEX
CCASS Participants are requested to note the following information published:
(A) in the Gazette on 27 & 30 May 2022:
– United Nations Sanctions (Yemen) Regulation 2019 (Amendment) Regulation 2022;
– the updated list of terrorists and terrorist associates under section 4 of the United Nations
(Anti-Terrorism Measures) Ordinance; and
(B) on the website of Commerce and Economic Development Bureau (“CEDB”) on 28 May 2022:
– the updated list of individuals, groups, undertakings and entities under the United Nations
Sanctions (ISIL and Al-Qaida) Regulation.
/bit.ly/3GFvju5

Amendments to the Rules of the Exchange (the “Rules”)
HKEX
Holders of Stock Exchange Trading Rights and Exchange Participants are requested to note that the Securities and Futures Commission has approved amendments to the Rules for the purpose of reflecting the revision of the transfer fee for A-share trading as announced by China Securities Depository and Clearing Corporation Limited which came into effect on 29 April 2022.
The amendments, as set out in the Appendix, will take immediate effect.
/bit.ly/3N69uGl

Magellan, Enterprise and ICE Announce Update on Terminal Transfers of Midland WTI AGC Futures
ICE
Magellan Midstream Partners, L.P. (NYSE: MMP), Enterprise Products Partners L.P. (NYSE: EPD) and Intercontinental Exchange, Inc. (NYSE: ICE) today announced that the “no-charge” arrangement between the Magellan East Houston (“MEH”) and the Enterprise Crude Houston (“ECHO”) terminals to transfer crude oil delivered through the Midland WTI AGC futures contract (ICE: HOU) has been expanded to include deliveries conducted via ICE’s Exchange for Physical (“EFP”) and Alternative Delivery Procedure (“ADP”) mechanisms.
/jlne.ws/3m7yC3E

Japan Exchange Group released Trading Overview in May 2022.
JPX
Cash Equity Market; Derivatives Market.
/bit.ly/38ZoLdo

Special change in KRX ESG indices
KRX
Following Regular Constituents Change of KOSPI 200 and KOSDAQ150, KRX will change the constituents of KOSPI 200 ESG and KOSDAQ 150 Governance on June 10, 2022.
/bit.ly/3t7Gh5J

Special Change in REITs Infra Preferred balanced Index
KRX
There will be special constituents change in REITs Infra Preferred balanced Index effective from June 10th, 2022.
/bit.ly/3x0IUaJ

Trading 22 151 pre trade transparency position thresholds update
LME
This Notice sets out the list of liquid financial instruments and their associated Large In Scale (“LIS”) pre-trade transparency thresholds that shall apply to Inter-Office transactions with the effect from 01:00 London time on 6 June 2022.
/bit.ly/3624ceb

Nasdaq to Acquire Metrio, a Leader in Sustainability Software
Nasdaq
Metrio’s data collection, analytics and reporting solutions to bolster Nasdaq’s portfolio of IR & ESG services; Expected to improve corporates’ ability to manage and unlock value from their data so they can make better decisions; Nasdaq plans to maintain Metrio’s headquarters in Montreal
Nasdaq, Inc. (Nasdaq: NDAQ) announced today that it entered into an agreement to acquire Metrio, a privately-held provider of environmental, social and governance (ESG) data collection, analytics and reporting services based in Montreal. Nasdaq plans to integrate Metrio’s software as a service (SaaS) platform into its suite of ESG solutions.
/bit.ly/3m5hPhA

Straits Times Index (STI) quarterly review – June 2022
SGX
No changes to the constituents of the STI
FTSE Russell announces that there will be no changes to the constituents of the Straits Times Index (STI), following the June 2022 quarterly review.
/bit.ly/395c2FN

Fintech

Sheryl Sandberg Stepping Down as Meta’s COO After 14 Years; Executive plans to focus on family and philanthropic work; ‘Lean In’ author helped turn startup into advertising behemoth
Kurt Wagner and Emily Chang – Bloomberg
Meta Platforms Inc.’s Sheryl Sandberg, who became one of the most recognized figures in global business after helping Facebook transform from a startup into a multibillion-dollar advertising powerhouse, is stepping down as chief operating officer. Sandberg, 52, will remain on the board of Meta, the parent company of Facebook, Instagram and WhatsApp, according to a post on the social network Wednesday. Javier Olivan, who has led the company’s growth efforts for years, will take Sandberg’s place as COO when she formally leaves in the fall.
/jlne.ws/3mcGpgp

JPMorgan partners with fintech OmniLatam to lend to SMEs in the region
Tatiana Bautzer – Reuters
JPMorgan Chase & Co has partnered with fintech OmniLatam to extend credit lines to mid-sized and small suppliers of big corporations in Latin America. OmniLatam, which operates in Colombia and Chile and recently opened an office in Brazil, will provide receivable-backed credit and working capital lines to suppliers of JPMorgan’s clients in the region, which are large local corporations or multinationals’ subsidiaries. “Suppliers will have access to lower cost to discount their receivables at a time of rising interest rates”, said Ignacio Munoz De Cote, Head of Latin America Payments at JPMorgan. Corporations can ensure their suppliers are financially healthy and minimize pressures for raising prices, he added.
/yhoo.it/3m9gu9s

Cybersecurity

How Bad Could It Be? Three Key Steps For Preventing An SMB Cybersecurity Disaster
Dylan Natter – Forbes
We all know cybersecurity is a serious threat, so I won’t bore you with statistics you’ve heard a thousand times. But consider this: Studies indicate the cybercrime industry is more profitable than the worldwide illegal drug trade. Cyberattacks will continue and are only going to increase, especially with global conflict and political unrest on the rise. Bad actors leverage technology to automate attacks. They don’t care who you are, so small to midsize businesses (SMBs) are not immune.
/jlne.ws/3x98hID

How to support women in cybersecurity
Nicky Whiting – HelpNetSecurity
The problem of not enough cybersecurity professionals is exacerbated by a lack of diversity in the sector. There is a disproportionately low ratio of women to men within the entire technology industry. In the science, technology, engineering and math (STEM) industries, women make up only 24% of the workforce, and while this has increased from just 11% in 2017, there is clearly still a sizeable disparity.
The cybersecurity industry is performing only marginally better than STEM, with women making up roughly 24% of cybersecurity jobs globally, according to (ISC)².
/jlne.ws/3x3Ur9h

33% of cybersecurity leaders name zero trust their top priority
Security Magazine
The Zero Trust Impact Report from Illumio and The Enterprise Strategy Group (ESG) surveyed 1,000 information technology (IT) and security professionals in eight countries about their cybersecurity landscapes and the impact of zero trust on their organizations.
/jlne.ws/3m5Xfxs

Cryptocurrencies

Climate Point: Hot, noisy cryptocurrency mining in Appalachia
Janet Wilson – USA TODAY
Welcome to Climate Point, your weekly guide to climate, energy and the environment. I’m Janet Wilson in Palm Springs, California. Intrigued by the energy use, noise and visual blight from cryptocurrency mining, the Knoxville News Sentinel’s Vincent Gabrielle and Brianna Paciorka drove back roads of southern Appalachia to document first-hand the impacts. “We roll down our windows and it hits us immediately: the droning of hundreds of industrial fans,” writes Gabrielle. “I found mines everywhere. They’re tucked into industrial parks and popping up on farms. One occupies an abandoned hotel in Jellico that is reportedly haunted. They appeared during the pandemic without much fanfare or notice, and in some cases without oversight.
/jlne.ws/3x8aBj3

Fireblocks Hires Former Bank of England Fintech Chief to Lead CBDC Efforts
Jamie Crawley – CoinDesk
Fireblocks, a provider of crypto custody technology, hired Varun Paul, the former head of fintech at the Bank of England, as its first director of central bank digital currency (CBDC) and market infrastructure. Paul will lead Fireblocks’ efforts to build infrastructure for the integration of CBDCs, the firm announced Tuesday. He served for nearly 14 years at the U.K.’s central bank, spending the past 15 months as head of fintech. He will also engage with market infrastructure bodies to explore the benefits of supporting digital assets and participating in decentralized finance (DeFi).
/jlne.ws/3GGo9p8

FTX’s Harrison Says Stablecoin Demand Will Survive Terra’s Collapse
Helene Braun – CoinDesk
Without a doubt, 2022 has put the crypto industry through a stress test. Bitcoin hit a low price not seen since 2020, the industry’s market cap dropped to $1.2 trillion from $3 trillion five months ago, and what was one of the most popular crypto assets, Terra’s LUNA token, is now effectively worthless. Many newbie investors might ask what all of that means. Is crypto really worth nothing, as European Central Bank President Christine Lagarde said, or is now a buying opportunity? According to Brett Harrison, head of FTX.US, it’s a mix.
/jlne.ws/3M8wEuw

Crypto Warning From Within: Dogecoin Co-Creator Raises Scam Alarm; Jackson Palmer, a co-creator of meme coin Dogecoin, warns against many crypto projects.
Luc Olinga – The Street
It is a warning from within. And it comes when many have already been injured. Palmer Jackson, a co-creator of dogecoin, one of the most popular cryptocurrencies, is raising the alarm about several crypto projects that he says are scams. In a recent interview with the Australian site crikey, Palmer is asked about the crash in the cryptocurrency market this year. When the interviewer asked his opinion on what experts have dubbed “crypto winter,” the former crypto fan is merciless.
/jlne.ws/3NdQd5N

DeFi ‘Casino’ May Need New Global Regulator, German Central Banker Says
Jack Schickler – Coindesk
A German central banker has called for a bank-style international standard-setter for financial-technology innovations – while dismissing decentralized finance (DeFi) as a “casino” for speculators. Joachim Wuermeling called for discussions “now” on how to treat the fast growing segment of blockchain-based finance that could make banks redundant.
/yhoo.it/391BNHa

‘This Is the Usual’: Thai Central Bank Governor on CBDC Pilot Delay
Sandali Handagama – Coindesk
Thailand has been working on a retail central bank digital currency (CBDC), with an initial pilot planned for the second quarter of 2022, but the pilot was postponed to the fourth quarter of this year. The pilot, or trial of the retail CBDC, which is designed for use by consumers, is expected to test deposits, withdrawals and transfers. A central bank official said last August that the retail CBDC will be tested as an alternative payment method for “cashlike activities within a limited scale.”
/yhoo.it/3GFl4FY

‘Bloomberg Crypto’ Podcast Launches With An Eye On TerraUSD Implosion; Bloomberg’s managing editor for crypto stacy-marie ishmael lays out vision for new daily podcast, talks Terra with Bloomberg’s Olga Kharif
Victoria Vergolina – Bloomberg
Welcome to Bloomberg Crypto: a new daily podcast from Bloomberg and iHeart Radio. In today’s inaugural episode, host stacy-marie Ishmael introduces herself, shares what you can expect from this new daily offering, and outlines what the show aims to bring you each day.
/jlne.ws/3Q084Pp

Former NFT marketplace employee charged in first-ever digital asset insider trading case
Paul Best – FOX Business
Federal prosecutors announced the first ever digital asset insider trading case on Wednesday, accusing a former NFT marketplace employee of using confidential information to purchase NFTs before they would be featured on the homepage and shoot up in value. An NFT, or Non-Fungible Token, is proof of ownership for a digital asset that is traded on the Ethereum blockchain and cannot be replicated. Nathanial Chastain, a former product engineer for the largest NFT marketplace, OpenSea, was arrested Wednesday morning and charged with wire fraud and money laundering.
/jlne.ws/3adWJLk

Cannabis Companies Try the Metaverse as a New Marketing Platform; Virtual worlds present an opportunity to educate consumers about brands, but traffic is light
Ann-Marie Alcántara – WSJ
Cannabis companies are using the metaverse to set up shops, promote their core product, and sell real-world merchandise and nonfungible tokens. Major brands such as Miller Lite, Wendy’s, Estée Lauder and JPMorgan Chase & Co. have also experimented with using digital worlds for marketing, but cannabis marketers think the metaverse could offer some advantages of particular interest to them.
/jlne.ws/3tb2Kz1

Politics

US Officials Are Split Over the Next Round of Russia Sanctions; One administration faction pressing for ‘secondary sanctions’; Others warn Putin will exploit any divides among allies
Nick Wadhams – Bloomberg
Biden administration officials are divided over how much further the US can push sanctions against Russia without sparking global economic instability and fracturing transatlantic unity. While President Joe Biden’s team rallied behind behind a sanctions plan it rolled out just after Russia’s invasion of Ukraine, the debate is more heated now that President Vladimir Putin has shrugged off the early economic penalties and is forging ahead with his war, according to officials familiar with the discussions.
/jlne.ws/3taRF0T

China Says It Will Work With Russia to Promote ‘Real Democracy’
Bloomberg News
China’s top diplomat said Beijing will work with Moscow to promote “real democracy,” reaffirming his country’s ties with Russia. “China is willing to work together with Russia and the global community to promote real democracy based on nations’ own conditions,” Chinese Foreign Minister Wang Yi said Wednesday via video link at a China-Russia think tank summit, according to a government statement. The event was attended by his Russian counter part Sergei Lavrov.
/jlne.ws/38H5Xzn

Regulation

A regulatory shake-up that would give central banks too much power; Proposal on capital rules could mean investors end up outsourcing their investment decision to the regulator
Simon Samuels – FT
The life of an analyst of bank stocks is not for everyone. Much of the day is spent wading through regulatory minutiae, maintaining bloated spreadsheets and hacking through a thicket of acronyms such as CCBs, CCyBs, G-SIB, ATI, Pillar 2 etc. A recent speech by a senior UK regulator has proposed making things simpler, perhaps too simple though. Sam Woods, deputy governor for prudential regulation at the Bank of England and chief executive of the Prudential Regulation Authority, laid out a vision of a new system of regulation for bank capital.
/jlne.ws/3aCA7V4

Investomania; What fresh hell is this
Robin Wigglesworth – FT
We actually have some sympathy for the SEC. Regulating financial markets is hard. Half the country hates you for destroying freedom; the other half for allowing rapacious capitalism to run amok. And Elon Musk will haunt your dreams.
/jlne.ws/3PT1ASu

US brings first insider trading case involving NFTs; Prosecutors allege ex-OpenSea employee used confidential information to profit from digital asset sales
Hannah Murphy – FT
US prosecutors have charged a former employee of OpenSea, the popular marketplace for non-fungible tokens, with trading on confidential information in what they said was the first insider trading case involving digital assets. An indictment unsealed in the southern district of New York on Wednesday alleged Nate Chastain, OpenSea’s former head of product, used insider knowledge to secretly buy about 45 NFTs, or digital tokens that represent artworks, ahead of their promotion on the marketplace’s homepage.
/jlne.ws/3x6yKql

Why competitiveness should not become a goal for the FCA; A regulatory race to the bottom harms everyone except those who have something to keep from public scrutiny
John Kay – FT
The promotion of competition is an existing aim of financial regulation. But in proposals around the Future Regulatory Framework in the Queen’s Speech last month, an additional objective was suggested: encouraging “competitiveness”.
/jlne.ws/3m7R38n

Additional Measures to Strengthen the Security of Digital Banking
Monetary Authority of Singapore
The Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) today announced additional measures to further safeguard customers from digital banking scams. These measures complement those announced on 19 January 2022
/jlne.ws/3aquNDY

SEC Announces Eight New Investor Advisory Committee Members
SEC
The Securities and Exchange Commission today announced eight new members to fill all vacancies on its Investor Advisory Committee. The new members join 15 current committee members. The committee, established under the Dodd-Frank Wall Street Reform and Consumer Protection Act, advises the Commission on regulatory priorities and various initiatives to help protect investors and promote the integrity of the U.S. securities markets.
/jlne.ws/3PRIXyt

SEC Launches Game Show-Themed Public Service Campaign
SEC
The Securities and Exchange Commission’s Office of Investor Education and Advocacy today unveiled a game show-themed public service campaign to help investors make informed investment decisions and avoid fraud. Recognizing that sometimes investing may look and feel like a game, the campaign titled “Investomania” reminds investors to do their due diligence when making investment decisions.
/jlne.ws/3M9sEtt

SEC Obtains Final Judgments Against IIIinois Company and Its President for Affinity Fraud Targeting Christian Investors
SEC
On May 26, 2022, the U.S. District Court for the Northern District of Illinois entered a final judgment against John Henderson, of Naperville, Illinois, who had already been found liable for making false and misleading statements in connection with securities offerings targeting Christian investors, and against his company, Global Resources Leadership, LLC (“GRL”), against which default had already been entered.
/jlne.ws/3wVFSog

SEC Charges New York Grocery Supermarket Chain and CEO for Financial Fraud
SEC
On May 31, 2022, the Securities and Exchange Commission charged iFresh, Inc. (iFresh), a public issuer and a grocer that operates wholesale businesses and retail supermarkets across New York, Massachusetts, and Florida, with repeatedly filing materially inaccurate financial statements that failed to fully disclose related party transactions connected to its CEO, Long Deng (Deng). The SEC also charged Deng for his alleged misconduct related to the scheme.
/jlne.ws/3x8xQcS

SEC Obtains Final Judgment Against Tech Employee Charged with Insider Trading
SEC
On May 27, 2022, the Securities and Exchange Commission obtained a final judgment against former Snap Inc. engineer Mohammed “Mo” Pithapurwala and his wife Alifiya Kutiyanawalla. The SEC’s complaint, filed on December 3, 2021 in federal district court in Los Angeles, alleged that Pithapurwala unlawfully tipped his brother-in-law, Ammar Kutiyanawalla, who purchased Snap options on the basis of material nonpublic information ahead of the company’s February 6, 2018 earnings announcement. As alleged in the complaint, Pithapurwala and Alifiya funded Ammar’s Snap trading by transferring $20,000 to Ammar through intermediaries, and Ammar and Pithapurwala agreed to share the profits. The SEC charged Alifiya, who is Ammar’s sister, with aiding and abetting the insider trading.
/jlne.ws/3MbTkd9

CFTC Announces Agenda for the June 2nd Voluntary Carbon Markets Convening
CFTC
The Commodity Futures Trading Commission Chairman Rostin Behnam today released the agenda for the first-ever Voluntary Carbon Markets Convening that will be held on June 2 at 9:00 a.m. EDT at the CFTC’s headquarters in Washington, D.C. for participants only. In accordance with the agency’s implementation of COVID-19 related precautions, the general public will have access to the convening by webcast on the CFTC’s website or may also listen by telephone.
/jlne.ws/3Md5xOR

FINRA Appoints Michael Solomon Senior Vice President of Examinations
FINRA
FINRA announced today that it has appointed Michael Solomon as Senior Vice President of Examinations. Solomon will assume this role on June 6 and report to Greg Ruppert, Executive Vice President and Head of Member Supervision.
/jlne.ws/38KMQ7y

TRACE Depository Institution Reporting Port Requests
FINRA
As announced by the Board of the Federal Reserve System in the Federal Register on October 28, 2021, FINRA will collect detailed data on depository institutions’ daily transactions of marketable U.S. Treasury securities and of the debt and MBS issued by U.S. federal government agencies including government-sponsored enterprises (agencies) via its Trade Reporting and Compliance Engine (TRACE).
/jlne.ws/3M58pgI

Voluntary Carbon Markets: Analysis of Regulatory Oversight in the US
ISDA
Voluntary carbon markets are widely considered to have an important role to play in achieving greenhouse gas emissions goals. Market demand from entities and individuals purchasing carbon credits that are created through investments in nature-based or technology-based projects have fueled growth of the sector, with demand projected to increase by a factor of 15 or more by 2030 and a factor of 100 by 2050.
/jlne.ws/3xaZB4E

ASIC releases updated ePayments Code
ASIC
ASIC has today published the updated ePayments Code (the Code) to provide enhancements to and clarity on a number of existing protections for consumers.
/jlne.ws/3x6V1Ey

Investing and Trading

Fed Starts Experiment of Letting $8.9 Trillion Portfolio Shrink; First assets will mature without reinvestment on June 15; Officials uncertain about market impact of accelerated runoff
Matthew Boesler – Bloomberg
The Federal Reserve is about to start shrinking its $8.9 trillion balance sheet, deploying a second tool along side higher interest rates to curb inflation, though officials don’t know just how effective it will be. After doubling in size through asset purchases in the first two years of the pandemic, the balance sheet will be reduced at a pace that’s almost twice as fast as after the last financial crisis. While the process officially commences on Wednesday, the first US Treasury securities won’t run off until $15 billion mature on June 15.
/jlne.ws/3aeRzia

Environmental, Social and Corporate Governance

Record low wild salmon catch in Scotland alarms ecologists; Calls for action as decline is seen as evidence of harm caused by climate crisis, pollution and fish farming
Severin Carrell – The Guardian
Salmon anglers have called for urgent action to protect Scotland’s wild salmon after the lowest number on record were caught last year. The latest official data shows that 35,693 Atlantic salmon were caught by anglers on Scottish rivers last year, the lowest number since records began in 1952 and just 75% of the average over the last five years. The figures for sea trout, a species that uses the same rivers as salmon, were also the lowest on record, at 12,636 and 77% of the latest five-year average.
/jlne.ws/3x9W6eN

EOG Resources says natgas markets facing ‘structural change’
Liz Hampton – Reuters
Global natural gas markets are going through a “structural change”, Ezra Yacob, chief executive officer of EOG Resources said on Wednesday, pointing to fuel switching and energy shortages in Europe that have highlighted the need for fossil fuels. Gas prices have surged in recent months following Russia’s invasion of Ukraine, which Moscow calls a special operation. On Wednesday, U.S. Henry Hub futures were trading around $8.641 per mmBTU, up from $3.075 per mmBTU a year ago.
/jlne.ws/3mcMMAk

As Natural Gas Expands in Gulf, Residents Fear Rising Damage
Cathy Bussewitz, Martha Irvine – AP
The front lawn of Lydia Larce’s home is strewn with debris: Remnants of cabinets and chunks of pink shower marble lie between dumpsters. She lives in a FEMA trailer out back, her home in shambles more than a year after Hurricane Laura tore through Lake Charles.
/jlne.ws/394doRk

China’s Oil Giant Sees Its Future in Hydrogen and Clean Energy
Bloomberg News
China’s biggest oil and gas producer wants to shift half of its output to hydrogen, geothermal energy and clean power by 2050 amid the country’s move toward net-zero emissions. China National Petroleum Corp. referenced the target in its environmental protection report, which it published on its website Wednesday, saying oil and gas would still make up the other half of its output by then. The company is the parent of PetroChina Co., which said in its annual report in March it aims for new energy to make up half its output by 2050.
/jlne.ws/3xcKXdj

Red-Hot Coal Prices Threaten More Increases in Power Bills; Resurgent power demand and Russia’s war in Ukraine are putting pressure on supplies as inventories remain low
Ryan Dezember – WSJ
Natural gas isn’t the only power-plant fuel on fire this year. Thermal-coal prices from Appalachia to Australia have soared, threatening more increases in manufacturing costs and power bills this summer. Futures for coal delivered to northwestern Europe have risen 137% so far this year, to $323.50 a metric ton. The benchmark price in the Pacific region, set at an Australian export facility, is up 143% this year. Cash prices in central Appalachia have climbed 40% in 2022—and more than doubled over the past year—to $129.65 a short ton last week, the highest price on record. Power demand has come roaring back from the pandemic to drive the gains, as has the war in Ukraine, which prompted European electricity producers to stock up ahead of a ban on Russian coal exports starting in August.
/jlne.ws/3mqjtuB

Institutions

Deutsche Bank CEO’s Fixer Hoops Takes Next Leap as DWS Chief
Nicholas Comfort, Steven Arons and Eyk Henning – Bloomberg
Six years ago, Stefan Hoops grabbed the attention of Deutsche Bank AG management board member Christian Sewing with his cool head and proactive approach during a time of crisis. As the threat of a costly settlement in the U.S. was spooking investors and key clients, the young executive was among Deutsche Bank leaders putting in a barrage of calls to assure them the firm was safe to do business with.
/yhoo.it/3tbTRoJ

Goldman Pushes to Keep Executive Names Hidden in Gender Suit; Naming executives would ‘sensationalize’ case, lawyer says; Female ex-workers sought persmission to disclose names
Malathi Nayak – Bloomberg
Goldman Sachs Group Inc. and its former female employees who sued the company in one of Wall Street’s biggest gender discrimination lawsuits are sparring over whether names of two senior executives mentioned in internal complaints should be exposed. A Goldman Sachs’ lawyer on Wednesday urged a New York federal judge to reject the women’s request to disclose the parts of court records containing names of the executives, including one currently employed by the bank, who “were subjects of hearsay internal complaints” almost two decades ago.
/jlne.ws/3PVVNLZ

Archegos Lawyer Argues Banks Knew How the ‘Game’ Is Played; Attorney for ex-CFO compares lenders to ‘Shaq and LeBron’; At hearing, Hwang’s lawyer attacks US theory of manipulation
Greg Farrell – Bloomberg
Lawyers for Archegos founder Bill Hwang and former chief financial officer Patrick Halligan offered a preview of their defense strategy, attacking the US government’s allegations that the two deceived Wall Street’s biggest banks and engaged in market manipulation.
/jlne.ws/3avnvyR

KraneShares launches electric vehicle ETF in Europe; KARS, a US-domiciled version of the strategy, has about $240mn in assets
Sandra Heistruvers – FT
US-based asset manager Krane Funds Advisors has rolled out an exchange traded fund in Europe that invests in the “multi-decade global megatrend” of electric vehicles, and the future of transportation and mobility.
/jlne.ws/3NcqnPP

Deutsche banker takes over asset manager in the eye of an ESG storm; Stefan Hoops catapulted into centre of Germany’s latest corporate scandal
Joe Miller, Owen Walker and Adrienne Klasa – FT
Stefan Hoops had known for some time that he was in the running to take over at DWS, Deutsche Bank’s majority-owned asset manager beset by allegations of greenwashing. But a public police raid on both companies’ Frankfurt offices on Tuesday catapulted the 42-year-old Deutsche lifer into the centre of Germany’s latest corporate catastrophe earlier than expected.
/jlne.ws/38G18WU

FTSE Bursa Malaysia KLCI June 2022 semi-annual review
FTSE Russell
FTSE Russell announces that there will be no changes to the constituents of the FTSE Bursa Malaysia KLCI, following the semi-annual review of the FTSE Bursa Malaysia Index Series today.
Part of the FTSE Bursa Malaysia Index Series, the FTSE Bursa Malaysia KLCI is widely used by investors as the primary benchmark for the Malaysian market, including derivatives through FTSE Bursa Malaysia KLCI Futures (FKLI), FTSE Bursa Malaysia KLCI Options (OKLI). The benchmarks are also tracked by a number of index-linked financial products, such as exchange traded funds.
/jlne.ws/3tcrKFZ

FTSE China Index Series Quarterly Review – Q2 2022
FTSE Russell
FTSE Russell, a leading global index provider, has today announced the results of the FTSE China Index Series quarterly review for June 2022. Anhui Conch Cement (A) (SC SH), China Citic Bank (A) (SC SH) and Tongwei (A) (SC SH) will be added to the FTSE China A50 Index. Simultaneously, Chongqing Zhifei Biological Products (A) (SC SZ), Gree Electric Appliances Inc of Zhuhai (A) (SC SZ) and PetroChina (A) (SC SH) will be deleted from the index.
/jlne.ws/3NHTx98

Straits Times Index (STI) quarterly review
FTSE Russell
FTSE Russell announces that there will be no changes to the constituents of the Straits Times Index (STI), following the June 2022 quarterly review.
The STI reserve list, comprising the five highest ranking non-constituents of the STI by market capitalisation, will be (in order of size) Olam International, Suntec REIT, Keppel REIT, Frasers Centrepoint Trust and Mapletree North Asia Commercial Trust. Stocks on the reserve list will replace any constituents that become ineligible as a result of corporate actions before the next review. A full list of STI constituents can be found on the website.
/jlne.ws/3tc7HHH

Changes in composition of the STOXX Europe 600 Index
Qontigo
Qontigo has announced the new composition of the STOXX Europe 600 Index. Effective as of the opening of European markets on June 20, 2022, the following stocks will be added to and deleted from the index and its respective size and sector indices:
/jlne.ws/3x5UUYy

Goldman Sachs Stock Sputters Despite Brisk Run of Business; While deal making and trading exceed expectations, the firm’s shares are lagging behind those of some top rivals
Charley Grant – WSJ
Goldman Sachs Group Inc. GS -1.53% has delivered on its financial promises. Investors remain unimpressed. When the bank updated its corporate strategy in a January 2020 presentation to investors, it set new goals for how profitably it uses shareholder money. Goldman said it would target a return on equity of 13% to 14% within the next several years.
/jlne.ws/38KOp5q

Jones Trading appoints new co-head of prime services from Cowen; New co-head joins from Cowen, where he served as director of prime brokerage and outsourced trading.
Wesley Bray – The Trade
Jones Trading has appointed Mark McGoldrick as its new managing director, co-head of prime brokerage services. As part of his role, McGoldrick will act as a consultant to new and emerging hedge funds and guide them through the process of launching and growing an investment management business.
/jlne.ws/3tdk8TH

Wellness Exchange

Shanghai Ready to Exit Lockdown as Covid Cases Drop; After two months of lockdowns, China’s financial capital attempts return to normalcy
Rachel Liang, Shen Lu and Liyan Qi – WSJ
After four straight days with no Covid-19 deaths and with new cases at their lowest levels since early March, Shanghai is preparing to end more than two months of lockdowns. The easing of restrictions takes effect Wednesday, but already Tuesday evening social-media posts showed residents swarming the streets, chanting and dancing and posting images of themselves eating out at local restaurants. The majority of the 25 million residents of China’s financial capital can leave their homes and return to work starting Wednesday, the Shanghai government said. Aside from those in high-risk areas, all businesses can reopen, buses and trains will resume normal operations, and restrictions on private vehicles will be lifted. Shopping malls and other commercial centers can run at 75% of capacity.
/jlne.ws/3ta7jtr

Regions

Analysis: Indian private refiners profit from cheap Russian crude as state refiners suffer
Nidhi Verma and Gavin Maguire – Reuters
There’s a split emerging in India’s refining sector as private refiners tap cheap Russian crude and boost profits from exports just as domestically focused state refiners get squeezed by high oil costs and government-capped domestic fuel prices. While many Western buyers are avoiding Russian crude in response to its invasion of Ukraine, Indian private refiners such as Reliance and Nayara have been among the biggest buyers this year of discounted Russian supplies.
They are reaping major profits by reducing domestic sales and aggressively boost fuel exports, including to buyers in Europe, which is now boycotting imports of Russian energy.
/jlne.ws/3x2YqTB

Macau’s casino losses engulf gambling hub as no quick fix in sight
Farah Master – Reuters
Plunging casino revenues in Macau, the world’s largest gambling hub, are taking a heavy toll on the wider economy, forcing hundreds of businesses to close down and pushing unemployment to its highest level since 2009. The former Portuguese colony on Wednesday posted one of its worst monthly gambling revenues since September 2020, a week after Macau’s government warned that rising job losses and financial strains could trigger social conflicts and destabilise the city’s security.
/jlne.ws/3m8um3M

Chinese Warehouses Check Metal Inventories as Traders Cry Foul
Alfred Cang – Bloomberg
Regular operations in at least three Chinese warehouses have been suspended to check on-site metal inventories, according to people with knowledge of the information. The suspensions came after several domestic traders alleged they were duped into providing loans against artificially inflated aluminum stockpiles in one facility.
/yhoo.it/3M9Y4Ae

Russian Wheat Cheapest at GASC tender
Yusuf Khan – WSJ
Russian wheat was the cheapest at an Egyptian wheat tender on Wednesday, although Romanian and French-origin grain dominated bids. Egypt’s General Authority for Supply Commodities received 16 bids in its tender, according to a list of bids seen by the Wall Street Journal. Offers ranged from $438.86 a metric ton for Russian origin wheat being shipped from Taman, the cheapest, to $467.25 a ton for Romanian origin being shipped from Constanta.
/jlne.ws/3NimWao

Mexico’s Oil Windfall is Enough to Subsidize Fuel Prices, AMLO Says
Amy Stillman – Bloomberg
Mexico President Andres Manuel Lopez Obrador defended his government’s decision to subsidize gasoline and diesel prices, saying it’s necessary to tame inflation and that it can be financed with a windfall from crude oil exports.
/yhoo.it/3z7ChpU

Miscellaneous

Seven Ways to Beat Burnout and Get Your Career Back on Track; Here’s how to fix what’s making you exhausted over the long term.
Arianne Cohen – Bloomberg
In 2015 online training platform Administrate grew from 13 employees to 30. John Peebles, its chief executive officer, who was 35 at the time, met with investors on a hot summer afternoon. He didn’t feel well but continued with his presentation. “I started to sweat and got very hot, and it felt like I’d pinched a nerve in my neck,” Peebles says. “I thought, ‘Wow, this is bad. I hope no one notices.'” He completed the presentation, schmoozed briefly, and walked home to his apartment building. Then everything went to black. “I just fell down in the stairwell. I thought, ‘Well, I’m dying. But at least I’ve got key-person insurance, so the company will get an insurance payout.'” This is not ideal deathbed fodder.
/jlne.ws/3PW1fhX

Coffee Drinking Linked to Lower Risk of Dying, New Study Finds; The research found that those who drank moderate amounts of coffee, even with a little sugar, were up to 30 percent less likely to die during the study period than those who didn’t drink coffee.
Dani Blum – NY Times
That morning cup of coffee may be linked to a lower risk of dying, researchers from a study published Monday in The Annals of Internal Medicine concluded. Those who drank 1.5 to 3.5 cups of coffee per day, even with a teaspoon of sugar, were up to 30 percent less likely to die during the study period than those who didn’t drink coffee. Those who drank unsweetened coffee were 16 to 21 percent less likely to die during the study period, with those drinking about three cups per day having the lowest risk of death when compared with noncoffee drinkers.
/jlne.ws/3M5fMEQ

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Bears Picked Right Stocks to Short With Declines Twice the S&P’s

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