Cboe Global Markets Plans to Launch New U.S. Treasuries Trading Platform

Nov 4, 2021

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FIA Expo: CFTC’s Dawn Stump Urges Return to Basics When Regulating Crypto, Carbon Markets
By Suzanne Cosgrove — John Lothian News

In a keynote address at the FIA Expo on Wednesday, CFTC Commissioner Dawn Stump urged the industry, and regulators, to go back to the basics in their discussions of who should oversee digital assets and how they should be overseen before “engaging in a jurisdictional power-grab.”

She said she is often asked to address the topic of cryptocurrencies at conferences.

“I am reminded that the public is confused by the application of each federal and state regulator’s current regulatory and enforcement regime,” she told the Expo audience. “Until we remedy that confusion, we cannot have an honest conversation about whether any agency needs new authorities. And only then can informed stakeholders contribute to designing a workable regulatory structure.”

To read the rest of this story, go HERE.


FIA Expo: Reunited After Two Years, Exchange Leaders Trade Friendly Barbs
By Suzanne Cosgrove – John Lothian News

“Out of a crisis comes innovation,” noted the moderator of a Wednesday FIA exchange leader panel, Jacqueline Mesa, who also is FIA chief operating officer and senior vice president of global policy.

She then asked the three panelists on the Wednesday FIA Expo panel, Terry Duffy, chairman and CEO of CME Group, Ed Tilly, chairman, CEO and president of Cboe Global Markets, and Jeff Sprecher, chairman and CEO of Intercontinental Exchange, what big trends came out of the pandemic.

“Work from home,” answered Sprecher, who added that the trend made its way into the financial services industry quickly. “Communications within our own organization,” said Tilly, adding that the frequency of communications stepped up, and technology advances allowed for the change.

To read the rest of this story, go HERE.


FIA Expo: CNN Correspondent Offers Moving Lessons of War
By Sarah Rudolph – John Lothian News

FIA Expo’s keynote lunch speaker on Wednesday was Clarissa Ward, chief international correspondent for CNN, who has covered wars and natural disasters in Afghanistan, Syria, India and other areas.

She had five main “lessons” to impart from her long career as a journalist on how people can become “good global citizens.”

The first was “Know your privilege.”

We don’t always acknowledge the full extent to which the privileges we have pervade our lives, Ward said. She gave an example – she was in Afghanistan this past summer when it fell to the Taliban. She and her crew were exhausted and hungry and decided it was time they got out. Special Forces of a country she would not name told them to go to a particular gate at the airport. When they arrived at 6:30 a.m. there was a crush of people, including many Afghans, trying to board the planes. The Taliban were using whips and truncheons on the crowd and firing AKs into the air. As the crew got to the gate, Ward could see dozens of Afghans gathered there. She and the crew formed a human chain to push through the crowd, sometimes pushing Afghans away so they couldn’t get in the gate. “It was a horrifying experience,” Ward said. She was at the back and when she got through to the plane she shouted to a guard, “I’m an American. I’m CNN.” The guard ripped her through the door and into the plane.

“Why did I get to leave and others didn’t?” was her rhetorical question. “My American passport conveys all kinds of privileges.”

To read the rest of this story, go HERE.


FIA Expo: Evolving Technologies and Their Lasting Impacts
By Jeff Bergstrom – John Lothian News

The Evolving Technologies and Their Lasting Impacts discussion revolved around how the pandemic has affected the generally staid financial industry. Per the discussion description, “Fintech developments such as cloud computing, chatbots, AI and distributed ledger appear to have come into their own within this environment.”

Two issues were of note: how the pandemic has affected the work environment and how it has affected doing business. Certainly working from home has changed things but new challenges have arisen. The financial industry has long since moved off of the trading floor and on to computers where, in theory, most work could be done from anywhere with a data connection to the office. But people generally do not have the elaborate computer setups at home that they might in the office (e.g. many multiple screens). Fintech companies are having to find ways to make trading on one or two screens as efficient as it was on (say) six.

To read the rest of this story, go HERE.


Hits & Takes
John Lothian & JLN Staff

CFTC Commissioner Dawn Stump spoke yesterday at the FIA EXPO 2021 in the slot normally allotted to the CFTC Chairman. You can watch her speech here on YouTube.

Also, here is the YouTube video of yesterday’s EXPO exchange leaders panel featuring CME’s Terry Duffy, ICE’s Jeff Sprecher and Cboe’s Ed Tilly

You can also watch FIA CEO and President Walt Lukken’s opening remarks, which are always good.

Chuck Mackie went with the trite headline “Back to the Futures: FIA Expo 2021 Live and In-Person!” for his coverage recap of EXPO.

NFA: To provide SDs with information on the integration of capital requirements into NFA’s SD exam program, and to provide general information on SD exams, NFA will hold a webinar on Tuesday, November 16, 2021 at 3:00 p.m. CT/4:00 p.m. ET. There is no charge to attend the webinar; however, registration is required. — NFA

Euronext will announce its 2024 Strategic Plan on Tuesday, 9 November at 9:00 CET.
This event features Stephane Boujnah, CEO of Euronext, and Euronext Management will provide insight into Euronext’s strategy for the coming years. For more information and to attend, click HERE.

Citadel has a video on LinkedIn aimed at recruiting that has some of their investors and traders talking about risk and reward and what challenges and inspires them.

Yesterday JLN interviewed Greenwood Project founder Bevon Joseph, who shared with us that it was his presentation at our MarketsWiki Education World of Opportunity series a couple of years ago that initiated conversations with the FIA and led to 25 students getting internships with FIA member firms. You never know the good that can come from something.

Business Insider reports that “Ether hits record high above $4,600 after CME unveils micro-futures launch.”

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


To Fight Climate Change, Put Markets to Work; The global transition to clean energy and green infrastructure will require vast amounts of capital. Private-sector leaders stand ready to act.
Michael R. Bloomberg and Mark Carney – Bloomberg
The battle over climate change is putting an old maxim to the test: Where there’s a will, there’s a way. The COP26 climate summit in Glasgow offers reasons to hope it will be proven correct, particularly on a challenge at the heart of the issue: financing the global transition to clean energy. There is no longer any doubt about the will. Today, more than two-thirds of global gross domestic product is covered by some form of commitment to reach net-zero emissions. Turning these commitments into real action is the focus of COP26. And while much of the attention during and after the conference will be focused on national governments, the fact is: They can’t do it alone.

***** I don’t like the word fight for this. I think we need to manage it. We need to change direction. ~JJL


Welcome to the Crypto Metaverse, Where It’s All Too Easy to Lose; Decentralized finance is building half-real, half-virtual worlds that deserve full regulation.
Lionel Laurent – Bloomberg
Facebook and Microsoft Corp.’s stuffy corporate idea of the Metaverse — think virtual offices packed with creepy Dorian Gray-like avatars — is nowhere near as dystopian as the cryptocurrency-fueled metaverse that already exists today.

***** I think I am ready for the metaverse, with me being half machine parts now and all.~JJL


Stimulus checks: At least 18 billionaires got federal relief payments, report says
Aimee Picchi – CBS News
At least 18 billionaires — and hundreds of other ultra-wealthy individuals — received federal stimulus checks even though the payments were aimed at helping poor and middle-income households weather the pandemic’s economic crisis, according to a new report from ProPublica.
About 270 wealthy people received payments in the first round of stimulus checks directed by lawmakers in 2020, despite having a total of $5.7 billion in income, according to the report, which cited a trove of IRS data on thousands of the nation’s wealthiest individuals ProPublica said it had obtained.

***** Errors are inevitable in programs like that.~JJL


Wednesday’s Top Three
Our top story Wednesday was the Goldman Sachs announcement, Goldman Sachs Announces Managing Director Class of 2021. Second, from Traders Magazine, was TT to Drive Growth and Expansion Under New Leadership. Third was the FairX announcement, FairX Retail Futures Poised for Significant Growth as Volume Continues to Rise.


MarketsWiki Stats
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MarketsWiki Statistics


Lead Stories

Cboe Global Markets Plans to Launch New U.S. Treasuries Trading Platform
Cboe Global Markets
New interdealer trading platform for U.S. Treasuries leverages proven capabilities of Cboe; Designed to provide high-quality order flow, reduced market impact and price improvement opportunities; Unique trading model combines Cboe’s Full Amount technology with custom liquidity and analytics
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced plans to introduce a new dealer-to-dealer electronic trading platform for On-The-Run U.S. Treasuries. The platform (“Cboe Fixed Income”) will be Cboe’s first cash U.S. Fixed Income product offering, further diversifying and expanding its products, services and technology offerings into new markets and geographies around the world. Cboe Fixed Income is planned for launch in the second quarter of 2022, subject to regulatory approvals.

Google Invests $1 Billion in Exchange Giant CME, Strikes Cloud Deal; Tie-up gives Google’s cloud arm a prize client in financial services
Alexander Osipovich – WSJ
Alphabet Inc.’s GOOG 0.50% Google has invested $1 billion in futures-exchange giant CME CME 3.46% Group Inc. and struck a deal to move the company’s core trading systems to the cloud. Under the deal, the technology giant’s Google Cloud unit would eventually power markets that handle trillions of dollars in trades each day. The companies said Thursday that their 10-year partnership would allow CME to bring on new users faster, streamline operations and develop new tools with Google technology, such as artificial-intelligence software for monitoring market risks.

Crypto Jobs Span U.S. as Hubs Spring Up From Miami to Denver
Jonathan Levin and Olga Kharif – Bloomberg
Over half of new crypto jobs are outside of top five cities; Data shows the industry hasn’t settled on a single hub
The crypto job market in the U.S. is mirroring the decentralized ethos of the industry itself — it’s everywhere. New York, San Francisco and Los Angeles have the largest shares of crypto hires this year, followed by the Miami and Chicago metropolitan areas, according to a new ranking based on LinkedIn data. But the remaining 53% of crypto jobs in the study were dispersed elsewhere in relatively small chunks, the data show.

BGC launches electronic marketplace Fenics Markets Xchange; FMX will use LCH’s listed rates clearing service to provide a platform for generating capital and operational efficiencies between OTC interest rate swaps and US futures positions.
Annabel Smith – The Trade
Interdealer broker BGC Partners has launched a new marketplace that will allow participants to trade and execute US rates cash and futures fully electronically. Named Fenics Markets Xchange (FMX), the new marketplace will combine BGC’s low latency electronic trading platform for US treasuries, Fenics UST, and FMX US futures trading on one platform.

Eurex takes important step into USD swap market
Three banks streaming Eurex USD swap prices on Tradeweb; The service targets EU based clients
Eurex is partnering with several banks to strengthen its USD clearing services. Deutsche Bank, J.P. Morgan, and LBBW are now the first movers providing electronic Eurex USD prices on Tradeweb’s interest rate swaps platform, with further banks preparing to start streaming soon. This is in addition to the already established request for quote and voice market for Eurex USD swap prices.

SEC Chair Hints at New Rules for Advisors and Brokers on Use of Technology
Kenneth Corbin – Barron’s
Gary Gensler suggests a two-track rulemaking process to crack down on conflicts of interest tied to digital-engagement practices and payment for order flow.

Credit Suisse takes axe to prime broking after multibillion-dollar losses; Chair António Horta-Osório unveils sweeping overhaul as lender tries to draw a line under crises
Owen Walker – FT
Credit Suisse plans to all but exit the prime brokerage business that left it with $5.1bn of losses this year, as new chair António Horta-Osório unveiled a restructuring of the troubled lender.

Credit Suisse Revamps Business in Post-Archegos Overhaul; Swiss bank says its central mission will be catering to the world’s rich
Margot Patrick – WSJ
Credit Suisse CS -1.73% Group AG said it would exit most hedge-fund financing and restructure its sprawling operations after deep financial losses and regulatory penalties. The Swiss bank said Thursday its central mission will be catering to the world’s rich with private banking and wealth management. That flagship business, currently managed across geographic units, will sit under one roof and invest for growth with new hires and a target to boost assets to around $1.2 trillion by 2024, from under $1 trillion now.

European Fund Giants Battle for Passive Investing Supremacy; France’s Amundi is poised to overtake Germany’s DWS in the surging market for low-cost exchange-traded funds.
Mark Gilbert – Bloomberg
Just two of Europe’s standalone fund managers clear the $1 trillion hurdle that separates the go-getters from the also-rans in the global game of managing other people’s money. And things are about to get spicy between France’s Amundi SA and Germany’s DWS GmbH.

Don’t Drive Dirty Businesses Into the Financial Shadows; The more institutional investors disinvest from polluting companies, the greater the risk that climate damage will continue unabated.
Mark Gilbert – Bloomberg
Asset management firms are increasingly tempted to meet their environmental obligations by withdrawing capital from companies and industries that do the most damage to the planet. But there’s a risk that the assets they offload will drift into the shadows of private ownership, where polluting practices will receive less scrutiny and therefore stand even less chance of being curbed.

China Is Permanently Damaging Its Marketplace; Talk of war, stagflation and rationing is eroding the country’s confidence and affecting the dynamics of its financial industry
Shuli Ren – Bloomberg
If a stock market is a mirror of a society’s state of mind, then the U.S. is feeling exuberant right now. But in China, it is all about trepidation. Investors there are worried the government is going to mess things up.

Bitcoin Futures ETF Mania Cools as Wall Street Hits Pause Button
Katherine Greifeld – Bloomberg
Big demand for first fund rattles futures commission merchants; Bitcoin futures require more margin than most commodities
What was expected to be a wave of U.S. exchange-traded funds tied to Bitcoin futures has all but dried up — for now — after off-the-charts demand for the first one rattled Wall Street’s all-important middlemen.

The City’s long road to going green; Diminishing ambition reflects the challenge in becoming a world centre for green finance
Cat Rutter Pooley – FT
Perhaps it pays to be realistic. Once, the City of London was the global financial capital. Then it was merely Europe’s financial capital. When it could no longer be that because of Brexit, the government wanted it to be the green finance capital. On Wednesday, the UK instead settled for the title of “world’s first net zero aligned financial centre”.

US loan market begins shift away from tarnished Libor benchmark; Several deals have been struck using the Sofr rate in a sign benchmark reform is progressing
Joe Rennison – FT
Companies borrowing in the US loan market are finally shifting away from Libor, just months before the scandal-hit benchmark underpinning trillions of dollars of financial instruments will no longer be available for new deals. A handful of companies have now borrowed cash using the widely accepted replacement for Libor called Sofr, according to data from Refinitiv and LCD. Others are in the market with new deals.

What to Make of the HSBC-ECU Outcome?
Colin Lambert – The FullFX
A UK judge has thrown out claims brought against HSBC by ECU Group that its FX traders deliberately triggered stop losses and front ran the firm’s orders. The action, which is one of several brought by ECU Group against multiple banks, throws interesting light upon the bank-customer relationship – light that remains relevant in today’s market.


Singapore Hits Key Metric Tied to Easing Covid Restrictions
David Ramli – Bloomberg
Singapore’s Covid-19 outbreak may be slowing. The number of new local infections fell in the past week compared to a week earlier for the first time since mid-October, marking a key milestone that could lead to an easing of restrictions in the financial hub.

Moderna Dives as 2021 Vaccine Forecast Cut, Revenue Misses
Robert Langreth – Bloomberg
Moderna Inc. jolted the market with sales and earnings that badly missed analysts’ estimates as it lowered its forecast for 2021 Covid-19 vaccine sales in a third quarter performance that put it further behind vaccine rivals Pfizer Inc. and BioNTech SE.

Merck’s Covid pill Lagevrio secures green light from UK regulator; First authorisation for antiviral drug that halved the risk of hospitalisation or death during clinical trials
Jamie Smyth – FT
The UK medicines regulator has granted the first authorisation to Merck’s antiviral pill for Covid-19, a drug that has been hailed by public health experts as an important new tool to combat the pandemic.

How Tyson Foods Got 60,500 Workers to Get the Coronavirus Vaccine Quickly; The meatpacking giant, which was criticized for failing to do enough to protect its workers from Covid-19 last year, has become a leader on corporate mandates.Lauren Hirsch and Michael Corkery – NY Times
When Tyson, one of the world’s largest meatpacking companies, announced in early August that all of its 120,000 workers would need to be vaccinated against the coronavirus or lose their jobs, Diana Eike was angry. Ms. Eike, an administrative coordinator at the company, had resisted the vaccine, and not for religious or political reasons like many others here in her home state. “It was just something personal,” she said.

Exchanges, OTC and Clearing

BGC Partners Launches Fenics Markets Xchange (“FMX”)
Signs Cross-Margining and Clearing Services Agreement with LCH
BGC Partners
BGC Partners, Inc. (Nasdaq: BGCP) (“BGC Partners” or “BGC” or the “Company”), a leading global brokerage and financial technology company, announced today the launch of FMX, a comprehensive marketplace for fully electronic trading and execution across U.S. Rates Cash and Futures. BGC Partners also announced the execution of a Clearing Services Agreement with LCH Ltd, a leading global clearing house. FMX was created and designed specifically in response to its customers by combining both Fenics UST and FMX U.S. Futures on the same platform. FMX will deliver a unique U.S. Treasury and Futures integrated trading and clearing solution, utilizing Fenics UST’s platform, state-of-the-art technology, significant trading liquidity, and an expansive client network. The clearing agreement with LCH’s Listed Rates clearing service provides a platform for generating significant capital and operational efficiencies between OTC IRS and U.S. Futures positions. Through this innovative offering, FMX will fundamentally alter the current futures landscape.

Iceland’s International Carbon Registry (“ICR”) joinsThe Carbon Trade eXchange (“CTX”)
A global leader in the transition to renewables, Iceland has now set ambitious goals to phase out fossil fuels from its transportation sector. The progressive country recognised the massive potential of carbon markets as a mechanism to facilitate the global transition towards net-zero and the funding of climate projects.

CME Group expands derivatives offerings with launch of Micro Ether Futures; New futures will provide market participants with an efficient way to hedge their spot ether price risk and more easily execute ether trading strategies.
Wesley Bray – The Trade
CME Group is set to expand its crypto derivatives offerings with the introduction of Micro Ether futures on 6 December. The Micro Ether futures are sized at one-tenth of one Ether and will provide market participants with an efficient way to hedge their spot ether price risk and more easily execute ether trading strategies.

Provable Markets receives approval for FINRA broker-dealer application; Following approval of its application in the US, Provable Markets has received permission to operate its alternative trading system Aurora.
Wesley Bray – The Trade
Provable Markets has officially been accepted as a new member broker-dealer of the Financial Regulatory Authority (FINRA). As part of the terms of its new member agreement, Provable Markets has received permission to operate Aurora, its alternative trading system (ATS).

DTCC to offer CSDR penalty calculation service for failed trades; New service will also flag transactions that are in scope for CSDR, providing users with the ability to identify priority work prior to Settlement Date.
Richard Schwartz – The Trade
Exception Manager, the Depository Trust & Clearing Corporation (DTCC) platform to publish, manage and communicate trade exceptions, will now offer an optional Central Securities Depositories Regulation (CSDR) service to calculate predicted fail penalties. The calculation will prioritise exceptions by size of predicted penalty. A new linkage between Exception Manager and Central Trade Manager (CTM), DTCC’s central matching service for cross-border and domestic transactions, will also provide clients with direct access to golden source trade information to help prevent settlement fails.

Equity Index and FX Derivatives: Eurex KOSPI Derivatives and USD/KRW Derivatives: Korean Exam Holiday and options strike price pattern change
Due to the South Korean Exam Day on 18 November 2021, changes to the starting times for Pre-Trading and Continuous Trading will apply on that day for trading of the Eurex KOSPI Derivatives (FMK2, FBK2, OKS2) and for trading of the Eurex USD/KRW Derivatives (FCUW).

Equity Derivatives: Introduction of Equity Options and Single Stock Dividend Futures
Eurex Management Board of Eurex Deutschland took the following decisions with effect from
29 November 2021:
Introduction of 18 Equity Options pursuant to Annex B of Attachment 2, Introduction of 12 Single Stock Dividends Futures pursuant to Annex D of Attachment 2,

Deutsche Börse welcomes the decision to set up the new International Sustainability Standards Board in Frankfurt
Deutsche Börse Group
The International Financial Reporting Standards (IFRS) Foundation today announced the establishment of a new standard-setting body to set comprehensive minimum standards in the area of ??financial sustainability reporting. In the future, these standards are intended to provide investors and other capital market participants with information about sustainability-related risks and opportunities for companies so that they can make well-founded decisions. The International Sustainability Standards Board (ISSB) will be represented worldwide and in several locations; the seat of the board and the office of the chairman will be in Frankfurt.

ASX Group Monthly Activity Report – October 2021

TMX Group Consolidated Trading Statistics – October 2021
TMX Group Limited
TMX Group Limited today announced October 2021 trading statistics for its marketplaces – Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange and Montréal Exchange.

ICE Publishes 2022 Auction Calendar for UK Emissions Trading Scheme
Intercontinental Exchange, Inc.
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, today announced the publication of the 2022 auction calendar for the UK Emissions Trading Scheme (“ETS”).

Reminder – Exchange Coordinated Contingency Closing Auction Testing – November 6, 2021 and December 11, 2021
On Saturday, November 6, 2021 and Saturday, December 11, 2021, NYSE, NYSE American, NYSE Arca, Nasdaq and Cboe BZX will conduct testing of contingency closing auction procedures. The contingency closing auction procedures apply if a marketplace disruption prevents the primary listing exchange from conducting a closing auction. In the event of such a disruption, one exchange may designate another as the alternate exchange for the determination of the official closing price for its listed securities.

Nasdaq October 2021 Volumes
Nasdaq (Nasdaq: NDAQ) today reported monthly volumes for October 2021 on its investor relations website. A data sheet showing the monthly volumes and quarterly capture rates can be found at: http://ir.nasdaq.com/financials/volume-statistics.

Sharmila Kassam Joins Nasdaq Asset Owner Solutions as Chief Operating Officer; Nasdaq Asset Owner Solutions empowers the world’s asset owners in making better investment decisions through data and technology.
Nasdaq today announced that Sharmila (Shar) Kassam has joined as Chief Operating Officer of the newly formed Nasdaq Asset Owner Solutions. In this position, she will be responsible for connecting with institutional investors around the world to grow the solution’s client base and further pursue Nasdaq’s mission of helping institutional investors achieve their investment objectives through innovative technology and insights.

CME Group Declares Quarterly Dividend
CME Group
CME Group Inc., the world’s leading and most diverse derivatives marketplace, today declared a fourth-quarter dividend of $0.90 per share. The dividend is payable December 28, 2021, to shareholders of record as of December 10, 2021.

HKEX Monthly Market Highlights
Market capitalisation was $45.3 trillion at the end of October 2021, an increase of 5 per cent from $43.3 trillion for the same period last year. The average daily turnover in October 2021 was $130.4 billion, an increase of 11 per cent from $117.5 billion for the same period last year.

— EBS EBS Market Integration Notice: New and Updated Content — CME
— CME Globex Notices: November 1, 2021 — CME


Vendors push voice data across the trade lifecycle; Through partnerships and acquisitions, communications vendors are integrating voice data into different parts of the trade lifecycle to offer more sophisticated analytics and easier user interfaces.
Hamad Ali – Waters Technology
Electronification has supplanted voice trading in some fixed-income markets, particularly in instruments like US Treasuries, though progress is uneven. Rather than fading away, voice-based communications are adapting to new technology. Trading turrets are now available through touchscreen and in the cloud. But it is not just a shift away from physical, on-premises hardware. The harnessing of voice as a source of market data is now propelling an expansion of voice data into other stages of the

Banks seek greater clarity from regulators on cloud risk; Regulators are reluctant to specify cloud risks, despite warning of overreliance on three big providers
Steve Marlin – Risk.net
Banks are asking US regulators to provide more detailed guidance on the risks presented by cloud service providers, such as Amazon, Google and Microsoft. The Federal Reserve, Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corporation are preparing to issue new interagency guidance on managing the risks associated with entering into contracts with external suppliers. A draft version of the guidance, put out for consultation in July, does not distinguish between

EU firms call for single consolidated tape provider; Some say new rules could create data fragmentation and raise connectivity costs
Josephine Gallagher – Risk.net
Competitive markets are generally considered desirable, but in the case of a consolidated tape (CT) in Europe, the idea of multiple providers is not so welcome. “Normally we are quite prompt to say competition will help the market be more effective, but in this case, the consolidated tape by design is more suited to a central provider, where you see all the data at a very low cost. So, competition, in this case, may not be the right answer,” says one head of market structure at a European

Hong Kong’s Faster Payment System has surpassed 700,000 transactions a day in fintech milestone, says Financial Secretary Paul Chan
Chad Bray – South China Morning Post
Hong Kong’s Faster Payment System (FPS) has surpassed 700,000 transactions a day just over three years after its debut, showcasing one of the ways the city is seeking to innovate as a financial technology hub, according to Financial Secretary Paul Chan Mo-po.

CQG to launch new comprehensive suite of execution technologies; The new suite builds upon the infrastructure of software assets that CQG acquired from Blue Trading Systems in June last year as well as technology CQG has developed recently.
Wesley Bray – The Trade
Technology solutions provider CQG has launched a comprehensive suite of execution technologies designed to give market participants new tools to improve upon efficiencies and to achieve optimal trade execution.

“Embracing Technology And Innovation In Compliance And Risk Management – A Perspective From Monetary Authority Of Singapore” – Speech By Mr Damien Pang, Executive Director (Data & Technology Architecture) And Deputy Chief FinTech Officer, Monetary Authority Of Singapore, At RegTech Summit APAC On 4 November 2021
“Where is the knowledge we have lost in information?” T. S. Elliot’s words from 1934 continue to ring true, in the current age of innovation and big data. We are collecting much more data – the foundation of any decision making, because of improving technologies, changing business needs, to satisfy regulatory requirements and to enhance risk management capabilities in our institutions.

Index FinTech BITA Uses Vienna Stock Exchange Data Network
The Vienna Stock Exchange announces a new service offering and cooperation with the German fintech company BITA GmbH in the market data and index area. For the first time, the index data supplied by the cooperation partner is distributed defacto around the clock (00:30 – 23:30). The ADH data feed, a state-of-the-art infrastructure, establishes access to international customers in real time on a technical level. The customer network of Wiener Börse AG comprises all major market data providers and news agencies worldwide.


US puts Israeli spyware firm NSO Group on trade blacklist; Washington accuses company of supplying technology to ‘maliciously target’ activists and journalists
Mehul Srivastava and Aime Williams – FT
The US has added NSO Group, the Israeli military spyware company that created software traced to the phones of journalists and human rights activists around the world, to a trade blacklist as it targets the growing surveillance threat posed by hacking-for-hire companies.

House Passes Two Bills to Improve Small Business Cybersecurity
Eduard Kovacs – Security Week
The House of Representatives this week passed two bills whose goal is to boost small business cybersecurity in the United States. One of the bills, the Small Business Administration (SBA) Cyber Awareness Act, was introduced by Reps. Young Kim (R-CA) and Jason Crow (D-CO). It aims to strengthen the capabilities of the SBA when it comes to handling and rep

CISA issues sweeping federal directive for government cybersecurity
Quinn Owen and Luke Barr – ABC News
The Biden administration is ordering federal agencies to fix hundreds of vulnerabilities in software and hardware that hackers have been known to exploit, according to a new government directive released Wednesday.
The first-of-its-kind directive, issued by the DHS Cybersecurity and Infrastructure Security Agency, includes a list of vulnerabilities “that carry significant risk to the federal enterprise” with technical specifics that agency leaders are required to review and address within 60 days. Some areas will require a more immediate fix, according to CISA.

A likely hoax highlights what’s still shadowy in cyberspace
Joseph Marks – The Washington Post
It seemed terrifying. In September, an allegedly new ransomware gang called Groove posted on a Russian-language cybercrime forum urging criminal hackers to unite in attacking U.S. government interests.
But the operation may have all been a hoax, as journalist Brian Krebs reported — a Russian hacker’s ploy to embarrass Western cyber threat trackers and media and to sow confusion about the genuine hacking threats barraging U.S. targets and roiling U.S.-Russia relations.

Killware: New Cyber Threat A Potential Problem in Cybersecurity Litigations
Kristin L. Bryan, Christina Lamoureux and Elizabeth P. Helpling – The National Law Review
Recent coverage of data breach and cybersecurity litigation has focused on developments concerning Article III standing and inventive Plaintiff’s counsel seeking to rely on a cyberattack to bring quintessential consumer pricing class actions. However, there is a new development looming on the horizon that has received little attention so far: the threat posed by so-called “killware” and what it may mean for data privacy and cybersecurity.

Commissioner Roisman talks cybersecurity
Cooley LLP – JDSupra
On Friday, in remarks before the L.A. County Bar Association, SEC Commissioner Elad Roisman addressed some of the challenges associated with cybersecurity and cyber breaches and similar events. In his presentation, Roisman considers cybersecurity in a variety of contexts, such as the exchanges, investment advisers and broker-dealers, but his discussion of cybersecurity in the context of public companies is of most interest here. Although the SEC has imposed some principles-based requirements and issued guidance about cybersecurity disclosure, Roisman believes that there is more in the way of guidance and even rulemaking that the SEC should consider “to ensure that companies understand [the SEC’s] expectations and investors get the benefit of increased disclosure and protections by companies.”


Coinbase is trying out a subscription service for customers that would include no-fee trading, report says
Natasha Dailey – Business Insider
Coinbase is testing a new subscription service that would include enhanced support and fee-less trading. Coinbase, a crypto exchange with more than 68 million users, is launching the service called Coinbase One to a small number of users at first, the Block first reported. The new service would include priority phone support, including on weekends and holidays, as well as zero-fee trading, the Block said.

Big names in sports and business are on a crypto-giveaway spree. Here are 3 recent offerings of free coins.
Phil Rosen – Business Insider
Big-name generosity is helping crypto push further into the mainstream. Cryptocurrency continues to gain popularity among retail traders, companies, and even whole countries. Giving crypto away for free has been a valuable marketing tactic for bringing digital assets to a wider user base.

NFL quarterback Aaron Rodgers is giving out $1 million in bitcoin, but not every lucky fan is getting the same amount
Shalini Nagarajan – Business Insider
Green Bay Packers quarterback Aaron Rodgers said Monday he was giving away $1 million in bitcoin to fans via a collaboration with Square’s mobile payments service. “To make Bitcoin more accessible to my fans I’m giving out a total of $1M in btc now too. Drop your $cashtag w/ #PaidInBitcoin & follow @CashApp,” he said in a Halloween-themed video posted to Twitter.

Shiba Whale Wallets With Billions Raise Alarm of Crypto Sleuths
Michael P. Regan and Olga Kharif – Bloomberg
Concentration in ownership of Shiba Inu comes under scrutiny No. 2 holder starts moving coin after it surged to $51 billion
The unlikely star of the cryptocurrency world these days is Shiba Inu, named after the same breed of dog that inspired the market’s former unlikely meme-coin darling Dogecoin. The total market value of the token soared to more than $51 billion last week, leapfrogging over Dogecoin and putting it among the top 10 cryptocurrencies in existence — despite the fact its provenance as a meme leaves it without much of a fundamental economic reason to thrive.

BTS’ music label partners with crypto exchange on K-pop non-fungibles; Hybe seeks new revenue stream with creation of digital collectibles related to boy band
Song Jung-a – FT
The music label behind K-pop superstars BTS has said it plans to partner with South Korea’s biggest crypto exchange operator to sell non-fungible tokens related to the boy band and generate a new revenue stream.

New body to oversee global sustainability disclosure standards; Single framework aims to provide robust and comparable information for investors and tackle corporate greenwashing
Michael O’Dwyer – FT
The body responsible for international accounting standards has announced it will create a new board to develop sustainability disclosure requirements to try to tackle greenwashing by companies.

How much will it cost the UK to reach net zero? Boris Johnson’s optimistic rhetoric contrasts with that of his independent advisers
Chris Giles – FT
Boris Johnson tells us we can have it all. In his government’s net zero documents published last month, the UK prime minister says there will be “good jobs, green jobs [and] well-paid jobs” without sacrifices because the government will be “making carbon free alternatives cheaper” as the nation “build[s] back greener”.

Former Binance US chief Brian Brooks to lead crypto miner Bitfury; China’s crackdown has delivered a windfall to international groups that mint digital tokens
Eva Szalay – FT
Bitfury has named former Binance US boss Brian Brooks as chief executive, with the former financial regulator taking the reins of one of the world’s biggest crypto mining outfits at a time when the industry is booming. Brooks will replace Bitfury founder Valery Vavilov, who will become the company’s “chief vision officer,” tasked with developing new projects.

CoinShares Announces Interim Results for the Period ended 30 September 2021; CoinShares delivers strongest third quarter financial results in the Group’s history
CoinShares International Limited
CoinShares International Limited (Nasdaq First North Growth Market: CS) (“CoinShares”, the “Group” or the “Company”) today released its financial results and operational updates for the third quarter and nine-months ended 30 September 2021.

IPC Launches Connexus® Crypto; A flagship solution for Cryptocurrency trading
IPC, a leading provider of secure, compliant communications and multi-cloud connectivity solutions for the global financial markets, announced today the launch of Connexus Crypto, a market leading arbitrage enabling solution for cryptocurrency trading powered by the industry-leading Connexus Cloud platform. This unique solution is performance engineered to support complex trading strategies and provides low latency connectivity to global crypto-exchanges, enabling instant access to liquidity.


Mega-IRA Tax Changes Resurface in Draft of U.S. House Bill
Laura Davison and Ben Steverman – Bloomberg
Democrats revive tax change left out of Biden plan framework; Plan focuses on wealthy who have deferred taxes on millions
House Democrats are reviving changes to individual retirement accounts containing millions of dollars as lawmakers look to finalize the taxes on the wealthy to finance President Joe Biden’s agenda.

Boris Johnson cannot escape the costs of Brexit; Lost growth is saddling the UK with higher taxes or lower spending
Robert Shrimsley – FT
“Oh, that old figure,” said a cabinet minister airily on being confronted with new evidence that Brexit will deliver a 4 per cent long-term hit to the UK’s GDP. The facts may be ever less disputable but the Conservatives are not feeling the cost.

Polish gas boss warns EU to heed Moldova lessons on Russia reliance
PGNiG chief says eastern European nation’s crisis ‘shows clearly’ the risks of dependence on Gazprom for fuel
James Shotter – FT
Moldova’s gas crisis was a warning to Europe of the risks of being too dependent on Russia’s Gazprom, the chief executive of Poland’s state-controlled gas group PGNiG has said. Moldova declared a state of emergency last month after Gazprom cut supplies to the eastern European nation by a third following the expiry of a long-term contract and demanded Moldova pay more than double the previous price to keep gas flowing.

US law banning anonymous shell companies delayed at Treasury; Legislation requiring businesses to declare their true owners set to miss key legal deadline
Kiran Stacey and Stefania Palma – FT
A new law that will stop US businesses using shell companies to hide from tax authorities has run into delays at the Treasury department, senior Congressional Democrats have warned, with a key legal deadline set to be missed.


Self-reporting issues to FMA does not provide immunity from litigation
The Financial Markets Authority (FMA) – Te Mana Tatai Hokohoko – has laid its expectations for how firms under its supervision should deal with the regulator when day-to-day interactions evolve in the event of an enforcement process.

Direxion Withdraws Application for Short Bitcoin Futures ETF
Jamie Crawley – Coindesk
Exchange-traded fund (ETF) issuer Direxion has withdrawn its application to the U.S. Securities and Exchange Commission (SEC) to list a fund that would have maintained short exposure to bitcoin futures contracts issued by the Chicago Mercantile Exchange.

Hong Kong to review rules on whether to allow retail investors trade cryptocurrency ETFs, regulator says
Enoch Yiu – South China Morning Post
Hong Kong’s financial regulator is reviewing the rules governing transactions of cryptocurrencies, including whether individual retail investors are allowed to dabble in exchange traded funds (ETFs) with exposure to virtual assets. The Securities and Futures Commission (SFC) said it would review the 2018 rules that limited transactions of cryptocurrencies via funds or trading platforms to professional investors with at least HK$8 million to invest “to see if it is still fit for purpose, and whether modifications are required,” said its deputy chief executive Julia Leung Fung-yee.

SEC Paves Way for More Proxy Votes on Climate Change
Benjamin Bain – Bloomberg
Agency makes it harder to exclude shareholder proposals; Public companies may face wave of votes on social issues
Corporate executives may soon hear a lot more from investors about climate change and social issues after Wall Street’s top watchdog took steps to make it easier for proposals on these topics to get a vote at annual shareholder meetings.

SEC eases path to votes on shareholder petitions at US companies; Options narrow for groups seeking to block proposals on climate and social issues
Patrick Temple-West – FT
US companies will have a harder time blocking climate change and human rights petitions from annual shareholder votes following changes at the Securities and Exchange Commission.

SEC Rescinds Trump-era Policy, Eases Path for Shareholder Proposals on Environmental, Social Issues; Under new guidelines, agency to be more receptive to proposals that have broad societal impact
Paul Kiernan – WSJ
The Securities and Exchange Commission reversed a Trump-era policy and acted Wednesday to streamline the process for shareholders to propose resolutions on environmental or social issues during the coming proxy season.

Verena Ross takes up her duties as Chair of the European Securities and Markets Authority
Verena Ross started in her new position as Chair of the European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, today.

Keynote Address of Commissioner Dawn D. Stump at FIA Expo, Chicago, Illinois; Family Feud, Jeopardy, and Let’s Make a Deal
I am very happy to be here with you all in Chicago. Due to the pandemic, it has been a while since I have had the opportunity to speak in person. I am a little out of practice, so I am going to need a little help from the audience today. I hope we can also have a bit of fun by starting with a friendly game of “Family Feud.”

Digital Asset Data Provider CryptoCompare Receives FCA Authorisation
CryptoCompare, the leading digital asset market data and index provider, has received authorisation from the Financial Conduct Authority (FCA) and is now regulated as a Benchmark Administrator.

Investing and Trading

Basketball star Kevin Durant launches $200 million SPAC
Brooklyn Nets star Kevin Durant has become the latest celebrity to endorse a blank-check firm after his Infinite Acquisition Corp filed for an initial public offering of up to $200 million on Wednesday.

Environmental, Social and Corporate Governance

Italy to End Overseas Fossil Fuel Funding: COP26 Update
Bloomberg News
Italy has signed on to a deal at COP26 to end overseas financing for fossil fuels, after initially saying that it wouldn’t join. It’s part of a group of countries, banks and institutions making the commitment.

Carbon Levels Are Rising Again After Brief Covid Drop; An early estimate of 2021 emissions shows that China has returned to historic levels of coal burning.
Eric Roston – Bloomberg
Global carbon dioxide pollution returned to a pre-pandemic level this year, according to an early estimate by the research group Global Carbon Project prepared for the COP26 talks occurring in Glasgow.

Al Gore Sees ‘Subprime Carbon Bubble’ With $22 Trillion Tag
Tasneem Hanfi Brögger – Bloomberg
Al Gore, the former vice president of the U.S. and the chairman of Generation Investment Management LLP, said the world is witnessing a sustainability revolution and warned that investors caught on the wrong side of history will face losses.

Investors Have a Solution for Poor, Climate-Vulnerable Countries; Proposals at the COP26 summit argue that rich countries should give more money to developing nations so that it’s less risky for private institutions to invest
Kate Mackenzie – Bloomberg
There’s a powerful temptation to believe that financial wizardry can help solve global warming. Far too little is being spent on green projects, and what funds are available aren’t being channeled to developing countries that need them most. That’s why it’s become popular at United Nations climate summits such as COP26, taking place in Glasgow, to talk about “blended finance” — the idea that a small amount of public money can be used to “mobilize” a much larger amount of private money from pension funds and other asset owners. With the right instruments, the thinking goes, the world will be able to decarbonize fast enough to avoid the worst effects of climate change.

Do the maths on Mark Carney’s $130tn net zero pledge stack up? ‘Greenwashing’ fears over eye-catching headline number committed to decarbonisation
Owen Walker and Camilla Hodgson – FT
Mark Carney’s eye-catching claim in Glasgow that $130tn of private sector assets was committed to achieving net zero greenhouse gas emissions came with high-profile endorsements from BlackRock’s Larry Fink and Jane Fraser of Citigroup.

COP26 pact to end coal use undermined as US fails to sign; Deadline for developed nations amended to 2030s ‘or as soon as possible thereafter’
Leslie Hook, Neil Hume and Jim Pickard – FT
A flagship global agreement at COP26 to slash coal use was undermined on Thursday morning as the US refused to sign up and the text was weakened to allow another decade or even longer to phase out coal power.

Goldman Sachs launches new carbon footprint analytics application; Clients will now be able to analyse their carbon footprint across key carbon metrics including scope 1 and 2 carbon emissions, carbon intensity levels and net zero commitments.
Wesley Bray – The Trade
Goldman Sachs has launched a carbon footprint analytics application that will enable clients to measure and manage the carbon emissions exposure in their public equity and corporate bond portfolios.


Robinhood expands offering that allows retail investors to buy into IPOs
Online brokerage Robinhood Markets Inc said on Wednesday it would allow companies issuing shares through its IPO Access platform to set aside some stock for members of the public with ties to the issuers. Directed Share Programs (DSPs), which Robinhood refers to as its “friends and family” offering, allows employees, customers, vendors, or others who have a relationship with the issuing company an opportunity to buy shares at the IPO price.

Credit Suisse to Exit Prime Services in Sharper Pivot to Wealth
Marion Halftermeyer – Bloomberg
Credit Suisse Group AG will exit the hedge fund business at the heart of the Archegos Capital Management scandal and shift more resources to wealth management as it seeks to draw a line under a tumultuous year.

Windfalls for heavy industry in EU carbon scheme are a moral hazard; Giving free allowances to industrial companies reduces incentives to cut emissions
Pierre Andurand – FT
Amid the explosive increase in EU energy prices during the past few months, a familiar refrain has been heard from industry and certain member-state governments. The current price of EUR60 a tonne for allowances to emit carbon under the EU Emissions Trading System is supposedly partly to blame, and some kind of intervention to cap the price and/or add extra supply and/or curb the role of investors is therefore necessary to soften the blow for industry and consumers.

Credit Suisse to exit prime brokerage following Archegos Capital losses; The bank will ditch the majority its prime services business after the collapse of Archegos cost it $5.5 billion and led to an in-house risk review.
Jonathan Watkins – The Trade
Credit Suisse says it will all but exit prime services following the fallout from the collapse of Archegos Capital Management which cost the Swiss-bank $5.5 billion and forced a wholesale review of risk management across the business.


China Is Blowing Up One of the World’s Most Lucrative Bond Bets
Rebecca Choong Wilkins and Ailing Tan – Bloomberg
For nearly a decade, it was one of the most profitable trades in global credit. Now junk-rated Chinese debt is sliding from boom to bust in spectacular fashion—and investors are bracing for more pain. The selloff that began with China Evergrande Group five months ago is spreading rapidly as Xi Jinping’s government tries to purge the financial excesses from his country’s highly indebted real estate sector.

Paytm May Consider Bitcoin Offerings if India Legalizes Crypto
Chris Kay – Bloomberg
Paytm, India’s digital payments pioneer, would consider Bitcoin offerings if the nation’s authorities removed regulatory uncertainty surrounding the adoption of crypto currencies.

Kaisa Misses Wealth Product Payout on ‘Unprecedented’ Stress
Bloomberg News
China’s first defaulting developer comes under pressure again; Kaisa says investment products it guaranteed are overdue
Chinese developer Kaisa Group Holdings Ltd. missed payments on wealth management products it guaranteed, the latest sign of stress in the nation’s beleaguered real estate industry.

China’s Developer Bond Slump Deepens as Selling Spreads Onshore
Bloomberg News
Local notes’ plunging prices trigger trading suspensions; Kaisa dollar bonds lead declines in junk-rated dollar debt
The selloff in Chinese property dollar bonds intensified on Thursday amid signs of cracks emerging in the nation’s much larger onshore market. Kaisa Group Holdings Ltd. led declines in the nation’s offshore bonds as a financial product it guarantees missed a payment, while Shimao Group Holdings Ltd.’s 4.75% dollar note due 2022 was poised for its biggest drop on record. China’s dollar high-yield debt fell for the 10th day in 11 after yields climbed above 21%. Trading was halted in two yuan bonds after they plunged more than 20%.

UN launches African repo market in bid to lower borrowing costs; Short-term lending facility could save governments $11bn a year in interest costs, body says
Tommy Stubbington – FT
The UN has launched a new short-term lending market for African bonds in a move that it says could trim billions of dollars from government borrowing costs across the continent. The liquidity and sustainability facility (LSF) will allow investors to use African debt issued in foreign currencies such as dollars and euros in repo transactions, the organisation said on Wednesday at the COP26 climate conference.

UK government to invest in Asian renewable energy investment trust; Up to £25m to support projects in emerging markets announced at COP26
Akila Quinio and Joshua Oliver – FT
The UK government is to put up to £25m of public money behind the launch of an investment trust focused on renewable energy projects in Asia, as it seeks to encourage investors to back green projects.

Senior Austrian defence official ‘removed over links to fugitive Wirecard executive’; Brigadier Gustav Gustenau was until recently head of office of security policy within the ministry of defence
Sam Jones – FT
One of Austria’s most senior military officials has been removed from a sensitive government position amid concerns over his links to Jan Marsalek, the former chief operating officer of fraudulent payment company Wirecard.


Damon Galgut’s ‘The Promise’ wins Booker Prize for fiction; South African’s ninth novel is based around four funerals and tells the story of a family during the post-apartheid transition
Frederick Studemann – FT
Damon Galgut has won the 2021 Booker Prize for fiction for his novel The Promise, a vivid and searing account of family decline in South Africa during the transition from apartheid.

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