Cboe’s CEO Resigns Over Undisclosed Personal Relationships

Sep 19, 2023

First Read

Hits & Takes
John Lothian & JLN Staff

Huge news broke this morning and John is traveling to the WFE General Annual meeting in Bermuda and is unavailable to comment in Hits & Takes. A Cboe press release, along with stories in several major publications, reported that Ed Tilly has resigned as CEO of Cboe Global Markets over “undisclosed personal relationships.” Cboe said Tilly’s failure to disclose personal relationships with colleagues was a violation of Cboe’s policies and “stands in stark contrast to the company’s values.” The exchange also said the conduct doesn’t impact the company’s strategy or financial performance. The exchange has appointed Fredric J. Tomczyk as CEO. This appears to be the end of an era, as Tilly has been with Cboe for 35 years and has always been a major figure in the industry. No doubt John will have comments on it after he lands. In the meantime, see the stories below in Leads, and the press release in Exchanges. ~SR

And now here’s John:

I received the attendee list for the WFE General Annual meeting yesterday, and at the bottom of the list was the press coming to the conference. There was one journalist listed. Me.

Actually, given our focus on exchanges, trading platforms and the like, and the venue, I was not that surprised. I think the media budgets for island getaway stories were exhausted by all the Sam Bankman-Fried profiles. It was my attendance at the WFE in April of 2009 at a WFE IOMA conference in Frankfurt that opened the doors for journalists to attend WFE meetings for the first time, but that only attracted local Frankfurt financial press. I am not sure what the local Bermudian financial press corps looks like these days.

Being the only journalist in attendance, I am either going to be very liked, or very much disliked. I am going to try my best to be liked. There are many parts of the conference I can’t attend, as they are for WFE members only, which I am going to see if I can do something about given my unique status. I am sure I can learn much from attending the conference and learning about the myriad of exchanges in attendance, from the Abu Dhabi Securities Exchange to the TMX Group

During my trip to Frankfurt for the WFE IOMA conference, I visited the Deutsche Boerse headquarters at the time and had to bring my son’s class “Travel Panda” with me. How time flies. Tim just turned 28 this summer.

On Monday, the United States’ gross national debt surpassed the $33 trillion mark for the first time, The New York Times reported. This milestone serves as a clear indication of the nation’s precarious fiscal path, particularly as Washington grapples with the potential for a government shutdown this month amid yet another contentious debate over federal spending, the Times said.

In the latest episode of the Boxes and Lines podcast from IEX, Ronan Ryan and John Ramsay were joined by Barry Ritholtz, Chief Investment Officer (CIO) at Ritholtz Wealth Management and the host of the widely acclaimed Bloomberg podcast “Masters In Business.” Together, they explore valuable insights drawn from the 2008 financial crisis, debunk common misconceptions about inflation, and uncover the wisdom that often arises from the experiences of not obtaining what one desires.

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


The GlobalCapital Sustainable & Responsible Capital Markets Forum is holding its 10th meeting on September 28 in London at Convene 22 Bishopsgate. Representatives from financial institutions, corporations and governments will meet to debate the forward direction of the capital markets, addressing questions like:
– How to raise capital for sustainability and carbon neutrality?
– How to achieve development with lasting social impact?
– How to reward those who are successful?
Learn more and register here. ~SAED

R.J. O’Brien has hired financial markets veteran Tom Fitzpatrick as managing director, global markets insights. He had previously worked at Citi for almost 39 years, most recently as managing director. ~SR

Our most read stories yesterday on JLN Options were:
Crypto Whale Trades $150M in ETH Call Options, Trading Data Tracker Shows from CoinDesk.
The stock market’s fear gauge just signaled the bull market is alive and well from Markets Insider.
Hedge fund bets could spark turmoil in US Treasuries, BIS warns from the Financial Times. ~JB


Nick Solinger Reflects on FIA Tech Role, Its Future and IDX Takeaways

In this JLN video interview from this year’s FIA IDX in London, JLN Correspondent Julie Ros talked to Nick Solinger, the president of FIA Technology Services, Inc. He offers a comprehensive overview of FIA Tech’s role within the industry, recent developments at FIA Tech, its future plans, and the impact of its participation in IDX.

Watch the video »


Financing the Future: WFE’s view on creating public policy to promote long-term investment
The World Federation of Exchanges
The World Federation of Exchanges (WFE) has published a white paper today on the role ‘market-based finance’ plays in people’s futures. Inspired, in particular, by how share markets combat the effects of inflation, ‘Financing the Future’ examines the importance not just of long-term investment, but of having public policy that promotes it, rather than works against it. The WFE notes that market-based finance and credit channels play distinct and complementary roles in supporting economic growth, acting as twin engines, and that regulatory and other policy could do more to respect that distinction, as present policy shows signs of confusing the two.

***** I want the WFE to do a paper on “funflation” and its impact.~JJL


Chicago skyline poses a risk as hundreds of millions of birds migrate south for the winter
Nell Salzman – Chicago Tribune
Bird migration is on the rise, and so are window collisions. As temperatures slowly drop in Chicago, 300 millions to 400 million birds are crossing the continent heading south to their nesting grounds for the winter, according to Annette Prince, director and president of Chicago Bird Collision Monitors, a nonprofit dedicated to the respite and protection of migratory birds through daily rescue efforts.

***** It must be the new Mayor’s fault, everything else is.~JJL


Sam Bankman-Fried believes he is one of the ‘most hated people in the world’ as documents reveal his justification for FTX crash
Eleanor Pringle – Fortune
In a rambling 250-page document penned during his house arrest, Sam Bankman-Fried came to a conclusion: “I’m broke, wearing an ankle monitor and one of the most hated people in the world.” The 15,000 word self-reflection is formatted into a series of Twitter posts-though the site is now known as X-and was written while the FTX founder was on house arrest at his parent’s home in Palo Alto.

***** I’m taking my ball and going home, writ large. ~JB


Monday’s Top Three
Our most read story Monday, by several lengths, was Trillion-Dollar Industry Powering Chicago at Risk of Leaving, from Bloomberg. Second was Billionaire Ken Griffin freaking out ahead of ‘Dumb Money’ movie, from the New York Post. Third was Gary Gensler is making the SEC into a banana republic, an opinion piece from Charles Gasparino in the New York Post.


Lead Stories

Cboe’s CEO Resigns Over Undisclosed Personal Relationships; Tilly’s departure comes after probe launched last month; Former TD Ameritrade CEO Tomczyk to take over top job
Sally Bakewell – Bloomberg
Cboe Global Markets Inc. said Edward Tilly has resigned following an investigation that determined the chief executive officer didn’t disclose personal relationships with colleagues, ending a decade-long run during which the company’s stock more than tripled. The derivatives and securities exchange said it appointed Fredric Tomczyk, a current member of Cboe’s board of directors, as its new CEO, effective immediately.

***** Coverage of this story from The Trade, Reuters, The Financial Times, MarketWatch, and The Wall Street Journal.

UK regulator finds no evidence of politicians being ‘debanked’ over views; Financial Conduct Authority preparing to release report commissioned after Nigel Farage row
Laura Noonan and George Parker – Financial Times
A review by the chief UK financial regulator has uncovered no evidence that politicians are being denied bank accounts because of their views, according to people briefed on the findings. The Financial Conduct Authority launched a probe in August, weeks after former UK Independence party leader Nigel Farage unleashed a debate on free speech by claiming his accounts with private bank Coutts were about to be closed because his views “did not align” with the lender.

‘Financial equivalent of the Death Star’: These US lawmakers are sounding the alarm over talks of a central bank digital currency – here’s why one calls it an ‘Orwellian-style’ system
Bethan Moorcraft – Moneywise
Last week, Rep. Tom Emmer (R-MN) re-introduced a bill that would block efforts from the Fed and Biden administration to develop and institute a central bank digital currency (CBDC) that he believes would be used to “undermine the American way of life.” “The administration has made it clear: President Biden is willing to compromise the American people’s right to financial privacy for a surveillance-style CBDC,” Emmer said during a Sept. 13 press conference.

New York Regulator to Require Higher Standards for Coin Listings and Delistings; New expectations and procedures are spelled out for crypto firms in evaluating a crypto coin before adoption and removal
Mengqi Sun – The Wall Street Journal
New York’s financial regulator wants cryptocurrency companies regulated in the state to be more transparent about how they list and delist crypto coins. The New York State Department of Financial Services, in proposed guidance published Monday, spells out its expectations for how crypto firms evaluate a coin offering before adoption, based on a prior version of the framework. The regulator also describes its expectations of the steps and criteria a crypto firm must consider before delisting a coin.

Swiss Propose Vote on Plan to Nationalize UBS
Bastian Benrath – Bloomberg
A popular initiative in Switzerland wants to hold a vote on partially nationalizing UBS Group AG, the initiators wrote on their website. The so-called banks initiative proposes to amend the Swiss constitution to say that “large banks of systemic importance are to be managed as joint stock companies with the confederation as majority shareholder in terms of share capital,” according to the website.

Big Oil Shows Support for Energy Transition But on Its Own Terms; Oil sector leaders caution against phasing out crude too fast; Carbon capture touted among top paths to rapid emissions cuts
Devika Krishna Kumar, Mitchell Ferman, and Robert Tuttle – Bloomberg
The heads of Saudi Aramco and Exxon Mobil Corp. took to the stage at a major industry event Monday to voice support for the global transition to cleaner forms of energy, but one in which oil continues to play a major role for decades to come. Both chief executive officers touted capturing and storing carbon – a climate solution viewed skeptically by environmentalists – as one of the best way to significantly reduce emissions from burning fossil fuels. They also stated that cutting oil usage too quickly would be dangerous, given the growing global demand for energy.

Carbon-Cutting Market Needed in Energy Transition, Exxon CEO Says
Mitchell Ferman – Bloomberg
Government policy isn’t enough to reduce emissions and accelerate the world’s transition to cleaner energy sources and a market for carbon-emission reductions is needed, Exxon Mobil Corp. Chief Executive Officer Darren Woods said. Clear government policies around the world focusing on reducing emissions are crucial, and the landmark Inflation Reduction Act in the US is “catalyzing investment” in energy-transition supply chains – but more will be required, Woods said Monday.

Global Oil Execs Are Stuck Between Shareholders and Climate Promises; World Petroleum Congress tackles net zero, energy transition; Producers in host city Calgary among top environmental targets
Kevin Orland – Bloomberg
At this year’s World Petroleum Congress in Calgary, Canada, about 500 speakers, including Exxon Mobil Corp. Chief Executive Officer Darren Woods and Saudi Energy Minister Abdulaziz bin Salman Al Saud, will tackle topics including decarbonizing hydrogen production and indigenous participation in net zero efforts – fitting for a gathering titled “Energy Transition: The Path to Net Zero.” But the theme runs counter to the song many industry executives are singing.

When Governments Carelessly Risk a Food Crisis; Price caps on rice could destabilize the market at a time when nations can least afford instability to feed their populations and others.
Javier Blas – Bloomberg
It’s a diagram that Economics 101 students learn by heart. It puts together supply, demand and prices in a single chart. The graph is the stuff that makes markets tick, whether for iPhones or bowls of rice. As an associate professor at the School of Economics at the University of the Philippines, prior to her move into government, Cielo Magno imprinted the supply-and-demand chart on her students’ minds. Typically, supply slopes upward: When prices rise, suppliers are willing to produce more; demand generally slopes downward: At higher prices, consumers buy less.

I.R.S. Changes Audit Practice That Discriminated Against Black Taxpayers; The agency will overhaul how it scrutinizes returns that claim the earned-income tax credit, which is aimed at alleviating poverty.
Alan Rappeport – The New York Times
The Internal Revenue Service is overhauling how it scrutinizes the tax returns of lower-income Americans as part of an effort to reduce enforcement disparities that have made Black taxpayers far more likely than anyone else to be audited. At the center of this effort is a major change to how the I.R.S. conducts audits of recipients of the earned-income tax credit, a special tax refund that was created to help low-income workers.

Ukraine Invasion

Russia using genocide ‘lie’ as pretext to destroy, Ukraine tells World Court
Stephanie van den Berg – Reuters
Ukraine told the U.N.’s highest court in The Hague on Tuesday that Russia justified waging war against Ukraine by invoking “a terrible lie” that Moscow’s invasion was to stop an alleged genocide. “The international community adopted the Genocide Convention to protect. Russia invokes the Genocide convention to destroy,” Ukraine’s representative Anton Korynevych told judges. He called on the International Court of Justice (ICJ) to decide that it has jurisdiction to hear the case fully and eventually rule that Russia must pay reparations for invading under a false pretext.

Ukraine says it breached Russian lines by recapturing two eastern villages
A top Ukrainian general hailed the recent recapture of two eastern villages as an important breakthrough on Monday, saying it had enabled Kyiv’s troops to breach Russian lines near the shattered city of Bakhmut. But General Oleksandr Syrskyi, the commander of Ukraine’s ground, said fighting remained heavy around the two villages as Russia tried to recover positions it had lost. Moscow has not acknowledged losing control of either village.

Germany Plans Additional $428 Million in Military Aid to Ukraine
Naomi Kresge – Bloomberg
Germany announced additional military support for Ukraine worth EUR400 million ($428 million), though the package does not include the bunker-busting Taurus cruise missiles the government in Kyiv has urgently requested. The new aid will include munitions, armored vehicles and training for thousands of soldiers, as well as warm clothing for the winter and mine-clearing equipment, Bild newspaper quoted Defense Minister Boris Pistorius as saying. A ministry spokesman confirmed the report.

Evidence Suggests Ukrainian Missile Caused Market Tragedy; Witness accounts and an analysis of video and weapon fragments suggest a Ukrainian missile failed to hit its intended target and landed in a bustling street, with devastating consequences.
John Ismay, Thomas Gibbons-Neff, Haley Willis, Malachy Browne, Christoph Koettl and Alexander Cardia – The New York Times
The Sept. 6 missile strike on Kostiantynivka in eastern Ukraine was one of the deadliest in the country in months, killing at least 15 civilians and injuring more than 30 others. The weapon’s payload of metal fragments struck a market, piercing windows and walls and wounding some victims beyond recognition. Less than two hours later, President Volodymyr Zelensky blamed Russian “terrorists” for the attack, and many media outlets followed suit. Throughout its invasion of Ukraine, Russia has repeatedly and systematically attacked civilians and struck schools, markets and residences as a deliberate tactic to instill fear in the populace. In Kostiantynivka in April, they shelled homes and a preschool, killing six.

Exchanges, OTC and Clearing

Cboe Global Markets Announces Leadership Transition
Fredric J. Tomczyk, current member of Cboe Global Markets Board of Directors, and former President and Chief Executive Officer of TD Ameritrade Holding Corporation, named CEO; Edward T. Tilly resigns as Chairman and CEO of Cboe Global Markets; William M. Farrow, III, currently Lead Director, named non-executive Chairman of the Board of Directors of Cboe Global Markets. Cboe Global Markets, Inc. (Cboe: CBOE), the world’s leading derivatives and securities exchange network, announced today that it has appointed Fredric J. Tomczyk, a current member of Cboe’s Board of Directors, to the role of CEO, effective immediately. Mr. Tomczyk succeeds Edward T. Tilly, who has resigned from the company following the conclusion of an investigation led by the Board of Directors and outside independent counsel that was launched in late August 2023. The Board of Directors determined that Mr. Tilly did not disclose personal relationships with colleagues, which violated Cboe’s policies and stands in stark contrast to the company’s values. The conduct was not related to and does not impact the company’s strategy, financial performance, technology and market operations, reporting, or internal controls.

Nasdaq Capital Access Platforms Launches Sustainability Offerings for Corporates and Investors
Nasdaq (Nasdaq: NDAQ) today announced its Capital Access Platforms division has launched two new offerings designed to help corporates and investors better streamline their sustainability and impact investing journeys. Nasdaq Metrio™ is a SaaS-based, end-to-end platform that will help corporates to better collect, measure and report sustainability data. Nasdaq eVestment® ESG Analytics will unlock greater transparency for the global institutional market so investors can make better data-driven impact investment decisions. In addition, the Nasdaq ESG Advisory team released its “2023 Global Net Zero Pulse” report to help corporates inform their carbon credit purchase decision and sustainability initiatives.

ICE and DeltaTerra Announce Joint Climate-Informed Credit Risk Analytics Solution for Mortgage-Backed Securities Investors
ICE via Business Wire
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, and DeltaTerra Capital, an investment research and consulting firm focused on climate risk analysis for institutional investors, today announced a collaboration to offer climate-adjusted credit risk analytics for residential and commercial mortgage-backed securities. The new joint offering integrates ICE’s Physical Climate Risk Data with DeltaTerra’s climate analytics, financial risk models, and market data to deliver risk impact estimates for investors in the residential and commercial mortgage-backed securities markets.

Abaxx Technologies Announces Additional Director to be Appointed Ahead of AGM

Press Release Listings and Market Operation Committee – Athens Stock Exchange
The Athens Stock Exchange, following today’s session of its Listings and Market Operation Committee, ascertained that all listing prerequisites are met, according to art. 2 par. 4 L.3371/2005, regarding the listing of “OPTIMA BANK S.A.” (ISIN: GRS533003000), on the Main Market of the Athens Stock Exchange, on condition that adequate free float of the company’s shares will be achieved, according to the relevant provisions of the ATHEX Rulebook.

350 Investment Managers Now Leveraging Ctm’s Automated Affirmation Capabilities; DTCC launches a T+1 scorecard to assist CTM clients in assessing their operational efficiency in preparation for accelerated settlement; Plans to unveil new trade archival capabilities early next year to assist CTM clients with U.S. reporting obligations
The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, announced today that 350 Investment Managers are now leveraging CTM’s automated trade affirmation capabilities to accelerate the post-trade lifecycle, as firms prepare for the U.S. move to T+1 trade settlement. The number of buy-side firms who also leverage CTM’s Match to Instruct (M2i) workflow with a broker/dealer counterpart has increased by 91% since the start of 2023, with those clients achieving a near 100% same-day affirmation (SDA) rate by 9PM on trade date. The use of M2i is optimal in achieving SDA which is critical to meeting U.S. T+1 settlement timelines. CTM is offered as part of DTCC’s Institutional Trade Processing (ITP) suite of services.

Micro E-mini Nasdaq-100 Futures Surpass 1 Billion Contracts Traded
CME Group
CME Group, the world’s leading derivatives marketplace, today announced that Micro E-mini Nasdaq-100 futures surpassed 1 billion contracts traded on September 13.

BNY Mellon selects Eurex Clearing for their first centrally cleared repo trades in Europe; BNY Mellon, the world’s largest custodian, has joined Eurex as its first clearing house for repo outside the U.S.
Deutsche Boerse Group
BNY Mellon has chosen Eurex as the first clearing house in Europe to centrally clear repo transactions. The onboarding of the world’s largest custodian is another milestone for Eurex’s cleared repo markets. First transactions have already been executed.

The Moscow Exchange is introducing a new type of orders on the foreign exchange market
On September 25, 2023, the possibility of placing iceberg orders for swap instruments will be introduced on the Moscow Exchange foreign exchange market. The new type of application will be available to all professional participants in the foreign exchange market.


Fintech Owner Caio Marchesani Faces Extradition From UK in Money Laundering Case
Upmanyu Trivedi and Jonathan Browning – Bloomberg
A London-based fintech owner accused of helping drug traffickers launder hundreds of millions of euros through a crypto exchange platform must be extradited to Belgium to face criminal charges, a London judge ruled. Caio Marchesani, who owns Trans-Fast Remittance a payments business regulated by the Financial Conduct Authority, is alleged to have hoarded vast amounts of cash for Sergio Roberto De Carvalho, a Brazilian described by Interpol as one of the world’s most wanted kingpins before his arrest in 2022. Marchesani also is accused by prosecutors of managing crypto accounts for Flor Bressers, a Belgian national known as the “finger cutter.”

Enhancing Vendor Ecosystem Visibility and Cyber Resilience
Louis Thompsett – FinTech Magazine
We speak to Dan Morgan, Senior Government Affairs Director for Europe & APAC at SecurityScorecard, on why financial institutions face an uphill battle to comply with the Digital Operational Resilience Act (DORA) – an EU law related to the cybersecurity of the financial services sector.

American Fintech Flex Raises $20M in Equity and $100M in Debt Funding as Part of Series A
Financial IT
US-based B2B fintech start-up Flex, formerly known as Flexbase, has secured up to $100 million in debt funding and $20 million in equity funding as part of its Series A round. The debt funding came from Community Investment Management (CIM), while the equity capital was led by Florida Funders with participation from Home Depot Ventures, MS&AD Ventures, Companyon Ventures and others.


Clorox Warns of Product Shortages Following Cyberattack; Cleaning-product maker says quarterly earnings will take hit after last month’s incident dented capacity
Will Feuer – The Wall Street Journal
Clorox’s quarterly earnings will take a hit from a recent cyberattack, which has disrupted operations and dented availability of the company’s products. The cleaning-products maker said Monday in a securities filing that the fallout from the attack will cause a material impact to its current-quarter financial results. The longer-term impact is uncertain, given the continuing recovery.

Is Director Liability For Cybersecurity Failure An Immediate Risk?
Stewart Room – Forbes
Could company Directors be in breach of their legal duties, if they fail to deal properly with cybersecurity risks? This has long been a favoured topic of debate in cybersecurity circles, but in recent years, we have seen it break through into mainstream conversation. A current example from earlier this week concerns a statement by the Chairman of the Australian Security and Investment Commission, Mr Longo, who reportedly said:

The Consequences of Non-Compliance in Cybersecurity: Risks and Penalties
Stefanie Shank – Tripwire
Non-compliance in cybersecurity marks a grave oversight. It involves neglecting established security protocols, leaving organizations vulnerable to malicious actors. Read on as we examine the potential risks of non-compliance, including heightened susceptibility to cyberattacks, the specter of data breaches, and the erosion of a company’s hard-earned reputation.


What I Learned Managing a Crypto Fund for Five Years
Jeff Dorman – CoinDesk
I’ve been running a crypto fund for 1,825 days. Arca just achieved a major milestone, reaching a five-year track record of managing outside capital in our liquid hedge fund. Five years in any other industry may not seem like a long timeframe, but in crypto we often joke that one crypto year is equivalent to five normal years, and with 24/7 trading hours, it’s not untrue. During these past five years, I have seen many of our peers come and go, leaving a bit of survivorship bias as it pertains to crypto asset management.

Mark Cuban loses $870,000 in crypto hack, billionaire blames bad version of MetaMask software
Marco Quiroz-Gutierrez – Fortune
Even billionaire NBA owners aren’t immune from crypto exploits. On Monday, Dallas Mavericks owner and Shark Tank investor Mark Cuban lost $870,000 worth of tokens in a crypto scam that drained one of his digital wallets. The weekend attack, first tweeted by pseudonymous Twitter user @WazzCrypto, came after 160 days of inactivity for Cuban’s wallet and drained it of 10 types of tokens, including the stablecoin USDC, Lido-staked Ether, SuperRare tokens, and Ethereum Name Service.

Sam Bankman-Fried’s special treatment at a notorious Brooklyn jail: Lawyers say it’s complicated
Leo Schwartz – Fortune
Sam Bankman-Fried is not having a good time. Since his arrest at the hands of Bahamian authorities in December, the FTX founder has experienced the highs and lows of U.S. criminal justice. After receiving favorable bond conditions that allowed him to live at his parents’ $3 million home in Palo Alto, a judge revoked his bail in August, sending him to one of the most notorious pre-trial detention centers in the country.


Solana co-founder: ‘To keep the next great American founder in America, Congress must regulate crypto. But first lawmakers should learn how it works’
Anatoly Yakovenko – Fortune
I was born under Soviet rule in modern-day Ukraine. We moved to America when I was 11. Even at that age, I was very aware of the differences between the place I grew up-where access to assets and information was controlled with an iron fist-and my new home-where opportunity was unbound.

Republican presidential hopeful Pence says China close to becoming ‘evil empire’
Tim Reid and Gram Slattery – Reuters
Former Vice President Mike Pence said China is close to becoming an “evil empire” on Monday as he and fellow Republicans vying for their party’s presidential nomination ramp up rhetoric against what they say is America’s number one foreign adversary.

9 US senators publicly back Elizabeth Warren’s crypto bill; Senator Elizabeth Warren announces the expansion of her coalition to crack down on “crypto’s use in money laundering, drug trafficking, sanctions evasion.”
David Attlee – Cointelegraph
Nine United States Senators have added their support to Senator Elizabeth Warren’s Digital Asset Anti-Money Laundering Act, according to a statement from Warren’s office. The press release on Warren’s official senate webpage names Democratic Party Senators Gary Peters, Dick Durbin, Tina Smith, Jeanne Shaheen, Bob Casey, Richard Blumenthal, Michael Bennet and Catherine Cortez Masto, along with independent Senator Angus King, as those who joined the bipartisan coalition supporting the bill. Peters is the chair of the Senate Homeland Security and Governmental Affairs Committee, while Durbin is the chair of the Senate Judiciary Committee.

U.N. Chief’s Test: Shaming Without Naming the World’s Climate Delinquents; Antonio Guterres has spoken sharply of “planet wreckers” ahead of this week’s United Nations climate summit, but politics makes it tricky to get specific.
Somini Sengupta – The New York Times
The world’s top diplomat, Antonio Guterres, the United Nations secretary general, has lately been unusually blunt in his broadsides against fossil fuel producers. He has accused them of “profiting from destruction.” He has urged governments to stop funding coal and to put the brakes on new oil and gas projects. “History is coming for the planet-wreckers,” he has said. But who are these “planet wreckers?” He doesn’t name them.

Janet Yellen Is Running Out of Time to Make a Difference on Climate; The US Treasury Secretary has worked to put climate change at the core of US economic and financial policy. Critics say she needs to do more, faster.
Christopher Condon and Saijel Kishan – Bloomberg

US unveils Atlantic co-operation pact; Partnership does not include security but comes as Washington tries to counter Chinese influence
James Politi – Financial Times


A crypto influencer was arrested in Hong Kong for a potential $128 million fraud involving 1,400 people
Phil Rosen – Business Insider
Hong Kong police arrested six individuals, including crypto influencer and YouTuber Joseph Lam, on Monday in connection to the halted trading platform JPEX, the South China Morning Post reported. Police said the group is suspected of a “conspiracy to defraud” investors, and the case could involve HK$1 billion, or about $128 million, according to complaints lawmakers received from more than 1,400 people.

‘Cryptoqueen’ Ruja Ignatova remains a fugitive. But her business partner is going to prison
Faith Karimi – CNN
Ruta Ignatova, the infamous “Cryptoqueen,” remains a fugitive after getting on a plane and vanishing six years ago. But her former partner is going to prison. A New York federal judge has sentenced Karl Sebastian Greenwood to 20 years behind bars for his role in a global cryptocurrency scheme that scammed investors out of more than $4 billion.

‘Cryptoqueen’ Lawyer Denied New Trial on OneCoin Fraud
Bob Van Voris – Bloomberg
A lawyer who laundered $400 million from the OneCoin cryptocurrency fraud won’t get a new trial despite lies told on the witness stand by a prosecution witness who is the brother of the so-called “Cryptoqueen” fugitive Ruja Ignatova.

Binance Is Supposedly Separate From Crypto Custodian Ceffu. The SEC Has Questions
Jack Schickler – CoinDesk
This afternoon in a Washington, D.C., courtroom, lawyers will argue over a seemingly straightforward question: Is Binance.US a client of crypto custody provider Ceffu or not? Regulators are concerned over the apparent use of Ceffu by the U.S. arm of the world’s largest crypto exchange, because they’re wary of giving a foreign entity control over American customers’ assets.

SEC Issues New Strategic Plan for Diversity, Equity, Inclusion, and Accessibility
The Securities and Exchange Commission today announced that it has posted to sec.gov the agency’s Diversity, Equity, Inclusion, and Accessibility (DEIA) Strategic Plan for fiscal years 2023-2026 that builds on and advances the SEC’s DEIA commitment and previous successes.

Caught in a SAR Trap: Statement on In the Matter of Pierre Economacos
Commissioner Hester M. Peirce and Commissioner Mark T. Uyeda – SEC
The Commission’s Order Instituting Proceedings[1] finds that Respondent Pierre Economacos, a registered representative with 34 years of experience as a broker and an unblemished record, caused the Firm with which he is associated to violate Securities Exchange Act Section 17(a) and Exchange Act Rule 17a-8.[2] In essence, the Order faults Respondent for lacking a sufficiently suspicious mind because-in the Order’s telling-certain transactions in a longstanding customer’s account triggered one or more “red flags” in the Firm’s anti-money laundering policies. We disagree that the Respondent acted unreasonably.

SEC Charges Texas CBD-Inhaler Company and Its CEO in Fraudulent Securities Offerings
The Securities and Exchange Commission announced that on September 18, 2023, it filed a civil action in U.S. District Court for the Northern District of Texas, alleging that Rapid Therapeutic Science Laboratories, Inc. and its CEO, Donal R. Schmidt, Jr., engaged in fraudulent unregistered securities offerings that raised at least $3.25 million from more than 50 investors in 15 states. Rapid is a publicly traded company based in Dallas, Texas, that manufactures and sells inhaler devices containing cannabidiol (“CBD”), a substance derived from the hemp plant.

SEC Charges Financial Professional with Insider Trading in His Company’s Securities
The United States Securities and Exchange Commission today filed charges against Connecticut resident Jonathan J. Ferrie, a financial professional formerly employed at the Cigna Group, for insider trading in advance of Cigna’s quarterly earnings announcement in August 2021. Ferrie has agreed to settle the charges by, among other things, paying a total of over $33,000 in disgorgement of ill-gotten gains, prejudgment interest, and a civil penalty.

SEC Charges Florida Resident and Resident’s Two Companies for Operating as Unregistered Broker-Dealers
The Securities and Exchange Commission today announced charges against Florida resident Wilson J. Rondini, III and two companies Rondini controls, Falcon Capital LLP and Falcon Capital Partners Limited, alleging that all three operated as broker-dealers who were required to register as such with the Commission but failed to do so.

SEC Charges Lyft with Failure to Disclose Board Member’s Financial Interest in Private Shareholder’s Pre-IPO Stock Transaction
The Securities and Exchange Commission today charged Lyft Inc. for failing to disclose a company board director’s role in a shareholder’s sale of approximately $424 million worth of private shares of Lyft’s stock prior to the company’s initial public offering (IPO).

NFA orders Houston-based introducing broker Bosworth Brokers LLC and one of its principals to each pay a $100,000 fine.
NFA has ordered Bosworth Brokers LLC (BBL), an NFA Member introducing broker located in Houston, Texas, and Andrew Michael Gizienski, a principal and associated person of BBL, to each pay a $100,000 fine.

NFA takes emergency enforcement action against Doral, Fla. commodity pool operator Bit5ive Mining Fund Advisor, LLC and its principal Richard Alexander Acosta
NFA has taken an emergency enforcement action against Bit5ive Mining Fund Advisor, LLC, (Bit5ive Advisor), an NFA Member commodity pool operator located in Doral, Florida, and Richard Alexander Acosta, a listed principal and the sole associated person of Bit5ive Advisor.

FCA sets out initial findings on bank account access and closures
The information supplied by banks, building societies and payment companies suggests that no firm closed an account between July 2022 and June 2023 primarily because of a customer’s political views. The Payment Accounts Regulations ban banks or building societies discriminating on this basis. The FCA will be doing further work with firms to verify the data and to better understand the reasons behind, for example, the closure of accounts due to reputational risk.

MAS Reports Robust Enforcement Outcomes and Enhances Disclosure of Statistics
Monetary Authority of Singapore
The Monetary Authority of Singapore (MAS) issued its 4th Enforcement Report (963.6 KB)today, detailing robust enforcement actions taken against financial institutions (FIs) and individuals for market abuse, financial services misconduct and money laundering (ML) related offences.

Investing and Trading

Sub-50 Cent Price on Treasury Bond Underscores Investor Pain
Ye Xie – Bloomberg
Fifty cents on the dollar is a very low price in the world of bonds. In most cases, it signals that investors believe the seller of the debt is in such financial distress that it could default.

S&P 500 Marks 100 Days Without 1.5% Drop, First Time Since 2018; ‘There haven’t been reasons for big drops’ in stocks: Globalt; Billions poured into US equities ETFs in latest week of data
Jess Menton – Bloomberg
US stocks continued their slog through the end of summer, but the S&P 500 Index just notched a resiliency milestone not seen in five years. The benchmark for American equities closed for the 100th straight session without a drop of at least 1.5%. It’s had four losses of more than 1% in the two months since it peaked for the year, but otherwise daily swings have been muted to an extent not matched since 2018.

Tom Fitzpatrick Joins R.J. O’Brien as Managing Director, Global Markets Insights
R.J. O’Brien & Associates via PRNewswire
Chicago-based R.J. O’Brien & Associates (RJO), the oldest independent futures brokerage and clearing firm in the United States, today announced that financial markets veteran Tom Fitzpatrick has just joined the firm as Managing Director, Global Markets Insights. Over a career that included nearly 39 years at Citi, Fitzpatrick cultivated a strong following across the globe for his insightful market commentary across asset classes.

Wall Street’s Targets Are a-Changin’; The S&P’s unexpectedly strong performance has roughly 100 days to go before the end of the year.
John Authers – Bloomberg
Moving Goalposts
The targets, they are a-changin’. After a rally that few of us anticipated, the S&P 500 is plainly going to perform far better for the year than virtually anybody had expected. As a result, the major Wall Street strategists are giving up on the year-end targets that they adopted nine months ago and now look hopelessly bearish. To quote colleagues Jess Menton and Alexandra Semenova, Wall Street is “getting to grips with how wrong it’s been” in 2023.

What’s Better: CDs, Money-Market Funds or Treasury Bills? Got a money question? Let Buy Side find the answer. Write to money@buysidewsj.com, and we may publish an answer
Steve Garmhausen – The Wall Street Journal
“I see lots of talk in the media about CDs and money-market funds. But in my experience Treasury bills often have better rates, while offering the same government guarantee. How do these products really stack up?” -Jeff Wallace, Boulder, Colo.

Environmental, Social and Corporate Governance

Midwesterners Lament Lack of Transparency as Coalition Seeks Federal Aid for Proposed Hydrogen Hub
Grace van Deelen – Inside Climate News
Midwesterners know Lake Michigan for its crystal-clear water, distinctive sand dunes and stunning views. But the lake has a legacy of pollution, too: Steel mills, oil refineries and other heavy industrial facilities dot its southwestern shoreline from Chicago through Indiana to the Michigan border. Now, a burgeoning industry is hoping to accelerate the clean energy transition in the region with a clean hydrogen hub: a network of producers, consumers and transportation infrastructure intended to expand the use of hydrogen as a green fuel source in the United States. Unlike fossil fuels, hydrogen emits no heat-trapping carbon dioxide when burned.

More Than 150 Protesters Arrested in New York City While Calling on the Federal Reserve to End Fossil Fuel Financing; In a mass act of civil disobedience, activists blocked the entrance to the Federal Reserve Bank of New York to urge financial regulators to take action on the climate crisis.
Keerti Gopal – Inside Climate News
In one of the largest acts of civil disobedience to protest climate change in New York in a decade, more than 100 climate protesters were arrested on Monday after blockading the entrances to the Federal Reserve Bank of New York, where they called on financial regulators to curb fossil fuel financing. Undeterred by pouring rain, around five hundred protesters gathered at Zuccotti Park at 10 Monday morning before marching to the Fed. They stood in front of the bank’s entrances, chanting and holding signs and banners that said “Fossil Fuels Kill,” and “Biden End Fossil Fuels.”

Farming Can Work So Much Better for the Planet; Food production contributes about a third of global greenhouse gas emissions. Consumer choices, tech and policy will decide whether that remains the case.
Lara Williams – Bloomberg
Feeding 8 billion people is a big task, and we’re not excelling at it. Our global food systems have become incredibly dysfunctional, failing on multiple fronts including human health, carbon emissions and pollution. A new research paper hints at something better but only if we pull every lever available to us.

TNFD Vital to “Operationalise” GBF’s Target 15
Aaran Fronda – ESG Investor
Final recommendations on nature-related risks and disclosures aim to provide foundation for preserving the planet and financial market stability. The Taskforce for Nature-related Financial Disclosure (TNFD) has published its final recommendations for nature-related risk management and disclosure, serving as a tool to “operationalise” the achievement of Target 15 of the Kunming-Montreal Global Biodiversity Framework (GBF).

Companies Get Renewed Pressure to Disclose Nature-Related Risks; Voluntary approach faces spate of complex data challenges; 85% of biggest companies are highly dependent on nature
Gautam Naik – Bloomberg
Executives from companies, banks and asset managers published guidelines aimed at helping businesses disclose the risks they face from dwindling ecosystem resources, part of a broader global effort to get more funds devoted to halting and reversing nature loss. The science-based recommendations, known as the Task Force for Nature-related Financial Disclosures (TNFD), have been refined over the past two years with input from executives at companies including BlackRock Inc., UBS Group AG and HSBC Holdings Plc.

Can the SDG goals still be saved?
Gillian Tett and Patrick Temple-West – Financial Times

What Is COP28 and Why Is It Important?
Jess Shankleman – Bloomberg


Morgan Stanley Sued for $750 Million by Private Equity Firms Claiming Fraud
Greg Farrell – Bloomberg
Morgan Stanley was sued for at least $750 million by private equity firms who claim they were defrauded in a deal to invest in a credit agreement for a luxury high-speed rail line.

UBS Parent Firm Sold First Bond Since Credit Suisse Deal
Ronan Martin – Bloomberg
UBS Group AG sold its first bond at the holding company level since the takeover of Credit Suisse in March.

Santander Is Planning a Major Overhaul of Reporting Structure; Planned changes to the firm may reduce management layers; CEO Hector Grisi works to attain the company’s profit goals
Jan-Henrik Foerster and Macarena Munoz Montijano – Bloomberg
Banco Santander SA overhauled its corporate structure as Chief Executive Officer Hector Grisi seeks to simplify the company’s operations. As part of the changes, the Spanish bank is combining individual countries’ retail and commercial banking businesses under a new global unit, which will be headed by Daniel Barriuso, and creating a new digital consumer bank area that will be led by Jose Luis de Mora, Santander said in a statement late Monday.

Citizens Financial Plans $50 Billion in ESG Financing, Climate Goal Advice; Bank’s 2030 financing goal includes $5 billion in green funds; Lender is aiming to achieve carbon neutrality by 2035
Max Reyes – Bloomberg
Citizens Financial Group Inc. is setting sustainability targets that stretch from now until 2035 – and it wants to advise companies in sectors that pump out greenhouse gases on how they can follow suit.The bank wants to complete $50 billion in sustainable financing by 2030 and achieve carbon neutrality by 2035, according to a statement Tuesday. It also wants its bankers to advise clients whose businesses emit high levels of greenhouse gases on ways they can shrink their carbon footprints and achieve other climate goals. The first step in that plan is for bankers to discuss climate issues with all oil and gas clients by the end of next year.

Work & Management

Opinion: The Future is STEM – But Without Enough Students, the U.S. Will Be Left Behind
Mark Schneider – The 74
In 2022, the National Science Foundation’s Science and Engineering report sounded an alarm. The report showed that the United States is falling behind in science, technology, engineering and math, the STEM fields. According to the foundation, America no longer produces the most science and engineering research publications – that’s China. We no longer produce the most patents – that’s China. Now that we no longer graduate the most natural-science Ph.D.s – that’s also China – these trends are unlikely to change anytime soon.

Wellness Exchange

A new COVID vaccine is here, but those at greatest risk may not get it as outreach drops off
The Centers for Disease Control and Prevention recommends new COVID-19 booster vaccines for all – but many who need them most won’t get them. About 75 percent of people in the United States appear to have skipped last year’s bivalent booster, and nothing suggests uptake will be better this time around.

How to sustain focus and keep your social battery full during meetings and events
Nora Tobin – FastCompany
Last year’s Fast Company Innovation Festival was one of my first experiences back in person. I was thrilled to set my computer aside and experience the many enriching components of being in the midst of driven professionals. There’s nothing quite like this type of connection, both from a brand building and educational perspective, especially when we can share ideas over happy hour cocktails. While being back to live events certainly fills my cup, I was also reminded how much energy is required to maintain the pace of a multi-day conference. It may have been wise of me to get into bed early, but of course I did not. I was not passing up the social stimulation for a full eight hours of sleep.


The Mission to Create Europe’s Battery Hub, Whatever the Cost; Hungary is going all in to become one of the world’s biggest suppliers for EVs, and Viktor Orban won’t let anything get in the way.
Zoltan Simon – Bloomberg
Next to fields of corn and sunflowers near the city of Debrecen in eastern Hungary, workers in hard hats pour concrete into the foundations of what will be Europe’s biggest factory making batteries for electric vehicles.The airport-sized project by China’s Contemporary Amperex Technology Co. Ltd. is the jewel in the crown of roughly euro20 billion ($21.3 billion) of investments that Prime Minister Viktor Orban says will allow the economy to thrive from Europe’s green transition. Nowhere in the world is ramping up battery production faster on a per capita basis than Hungary.

Saudi Arabia’s energy minister says oil cuts not about ‘jacking up prices’; Prince Abdulaziz bin Salman defends lower output as crude nears $95 a barrel
Myles McCormick – Financial Times
Saudi Arabia’s energy minister has defended the kingdom’s decision to extend oil production cuts, insisting the move was not about “jacking up prices” even as crude futures push towards $100 a barrel. Riyadh and Moscow earlier this month announced they would prolong cuts to production and exports to the end of the year. Brent crude, the international oil benchmark, has since increased more than 5 per cent and on Monday rose another 1 per cent to almost $95 a barrel, a new 2023 high.

Azerbaijan launches military action in Karabakh ‘to disarm Armenians’
Azerbaijan launched military action in the Nagorno-Karabakh region, a step that could presage a new war in the volatile area but which Baku said was necessary to restore constitutional order and drive out Armenian military formations. Karabakh is internationally recognised as Azerbaijani territory but part of it is run by breakaway ethnic Armenian authorities who say the area is their ancestral homeland. It has been at the centre of two wars – the latest in 2020 – since the 1991 fall of the Soviet Union.

Fernando Haddad: Brazil’s plans to transform our green economy; Despite the challenges, we see our ecological transformation proposal as an opportunity for Brazilians
Fernando Haddad – Financial Times
The writer is finance minister of Brazil. It is not an exaggeration to say that we found our country in tatters when we took office less than a year ago. Growth was decelerating, debt trends were worrying, to say the least, and real interest rates were the highest in the world. Perhaps even more important, the social fabric of the Brazilian society needed urgent reknitting together after the new administration headed by president Luiz Inácio Lula da Silva faced a direct, violent attack on Brazil’s democratic institutions.


What If ‘Bonfire of the Vanities’ Wasn’t About Wall Street? Going deep into the Tom Wolfe archives. Also: TikTok tries shopping
Joseph Mysak Jr – Bloomberg
Stacked in the vaults of the New York Public Library’s grand main building at 42nd Street in Manhattan are 236 boxes detailing the personal and professional life of one of the 20th century’s most celebrated chroniclers of American society. It’s fitting that Tom Wolfe’s archive is housed in the heart of New York City; with The Bonfire of the Vanities, he wrote the definitive book on the 1980s, the decade when Wall Street’s masters of the universe-a Wolfe coinage-rose to dominate the economy and pop culture

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