Cboe’s Harkins to Join Electronic Bond-Trading Platform Trumid

Sep 23, 2021

First Read

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Hits & Takes
John Lothian & JLN Staff

An article I wrote is featured in the forthcoming edition of the Global Commodities Applied Research Digest (GCARD) on how the “Open Outcry Traders History Project Captures Traders’ Stories from Bygone Era.” It was my honor to contribute to the publication and share the Open Outcry Traders History Project story. Thank you to JLN Editor-in-Chief Sarah Rudolph and JLN Deputy Managing Editor Suzanne Cosgrove for their editing of the piece.

The GCARD is produced by the J.P. Morgan Center for Commodities (JPMCC, CU Denver Center for Commodities) at the University of Colorado Denver Business School, in association with Premia Education, Inc.; the JPMCC’s executive director is Dr. Tom Brady. The GCARD’s sponsors include Integrated Portfolio Intelligence, LLC, FourPoint Energy, LLC, and the CME Group. Subscriptions to the GCARD are currently complimentary HERE.

I wish the London Stock Exchange Group had issued a press release about the closing of CurveGlobal rather than just an exchange notice. It would have been nice to recognize the clients who took the initiative to trade on the exchange and to honor the staff who worked hard to make it work.

The Australian Securities Investment Commission, or ASIC, has published guidance on hawking reforms. It is a reform to the anti-hawking regime under the Financial Sector Reform (Hayne Royal Commission Response) Act 2020, which commences on 5 October 2021. In response and to show toucan play at this game without egrets, the U.S. SEC ruffled the feathers of eagle-eyed investors and the UK’s FCA has offered help for investors who crow about their winnings. ASIC was stork raven mad about the SEC and FCA regulatory flights of fancy, but we at JLN consider it all poultry in motion despite the amounts discussed being chicken feed. — ASIC

The NFA has issued its regular “Executive Representative Reminder and Board and Nominating Committee Members Whose Terms Will Expire at the Board’s 2022 Regular Annual Meeting.” — NFA

Aon Insurance founder Patrick Ryan and his wife Shirley and their family gave $480 million to Northwestern University, the biggest donation ever to the school. — Bloomberg

Do you want a chance to win a five minute video produced by John Lothian Productions? Just make a donation of $100 or more to the JLN MarketsWiki Education GoFundMe campaign and for each dollar contributed you will get a chance to win this video production offering.

The Smithsonian Magazine has a nice article on the impact of the HBO series “Band of Brothers” as it celebrates its 20th anniversary. The series premiered on September 9, 2001, two days before the attacks on the World Trade Center and the Pentagon on 9/11.

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 Morningstar Investment Conference is in its second day today and is gaining momentum. In a keynote discussion this morning titled, “The Disruptors, the Disrupted, and How to Value Them,” Dennis Lynch, head of Counterpoint Global at Morgan Stanley Investment Management, observed that bitcoin “is like Kenny in ‘South Park’ – he dies in every episode but then comes back again” in the next one. He added that a bitcoin investment is “highly speculative,” but argued that it has interesting qualities that can add to a portfolio when sized properly. ~SC


Brendan Bradley’s Front Row Seat to the Path to Electronic Trading

Brendan Bradley had a front row seat for the major exchange battles between open outcry trading and electronic trading after starting at the London International Financial Futures Exchange (LIFFE) in the 1980s and then moving to DTB in the mid-1990s. While there he saw the German Bund contract battle that shocked the global derivatives trading world and then later witnessed the competition between Eurex and the Chicago Board of Trade (CBOT) that he said ultimately led to the global leading exchange’s demise.

Bradley shared a historic overview of the development of markets in Europe as electronic trading developed for The Path to Electronic Trading from John Lothian News’ MarketsWiki Education video series.

Watch the video »


Gordon Tempest-Hay to be Lansons CEO from 1 January
Gordon Tempest-Hay, the former CEO of both Teneo in the UK and Blue Rubicon, is to join Lansons as CEO on 1st January 2022. He will become a significant shareholder in the firm from April 2022. Lansons Co-founder and current Chief Executive, Tony Langham, will become Executive Chairman focusing on client work and continuing to promote the business both at home and abroad. Fellow Co-founder, Clare Parsons, will move from Non-executive Chair to Non-executive Director.

***** Congratulations to Mr. Tempest-Hay.~JJL


Wall Street Dealmaker Tries to Restart His Weeknight Party Scene
Max Abelson – Bloomberg
Some don best suits and heels for a steak dinner for 60; Guest says it’s inevitable: ‘Force of capitalism is so strong’
Before the vaccination checks, air kisses, borrowed cigarettes, chilled Champagne, jumbo shrimp, strip steak and triple-chocolate pots de creme, the banker Euan Rellie arranged about 60 place cards himself. The co-founder of investment banking boutique BDA Partners was inside the Waverly Inn’s garden room in Greenwich Village this week to celebrate his firm’s quarter-century anniversary. But what made the scene so significant was that there was a scene at all. Covid’s global rampage may be fueling record profits for BDA and rivals, but it largely silenced the bank parties that had long been so normal on any given weeknight in Manhattan.

*****My wife wants me to go to a concert. I am not ready to step out into the night scene like that. When I have been surrounded by people I don’t know, at a restaurant or bar, I feel very uncomfortable. I feel the risk that is COVID-19 is still all about and not perceivable, which is disconcerting. Thus, I am dis-concert-ing.~JJL


Innovation still requires smart, even barmy, innovators; Progress depends on collective endeavour, but breakthroughs are often down to unorthodox individuals
John Thornhill – FT
It has been inspiring to read the tributes paid to Sir Clive Sinclair, the quixotic British inventor of the ZX Spectrum personal home computer, who died last week. For countless users, the launch of Sinclair’s cheap and clunky machine in 1982 was their first encounter with the magical possibilities of computers. “An absolute genius with just the right amount of barminess to be a proper British boffin,” one commenter wrote on The Register’s memorial page.

***** I will admit I had to look up the word “barmy.” It is an informal British expression that means mad, crazy, extremely foolish. The word comes from “an obscure term derived from barm, that is, ‘the froth that forms on the top of fermenting malt liquors.'” And now we all know.~JJL


John Kerry’s Sales Pitch to Save the Planet; As the first presidential envoy for climate, he wants to persuade world leaders to “do what the science tells us.” With global climate talks less than two months away, he faces a tough path.
Lisa Friedman – NY Times
The lanky figure lugging a green Orvis carry-on was instantly recognizable as he paused on the jetway after his overnight flight from the United States. “Mr. Kerry,” waved a fellow passenger. “Are you here to save the climate?”

*****The planet will survive, it is the people that are going to have issues and need saving.~JJL


Wednesday’s Top Three
Our most-clicked story on Wednesday was DRW’s job openings page, where the company has some openings for interns and full-time employees. Second was the market notice in which the London Stock Exchange announced the closure of CurveGlobal Markets. (CurveGlobal was also our MarketsWiki page of the day yesterday.) Third was The Wall Street Journal’s The Real Reason You and Your Neighbor Make Different Covid-19 Risk Decisions – its third time in the top three.


MarketsWiki Stats
26,621 pages; 235,891 edits
MarketsWiki Statistics


Lead Stories

Cboe’s Harkins to Join Electronic Bond-Trading Platform Trumid
Jack Pitcher – Bloomberg
Electronic trading veteran to lead Trumid’s sales organization; Trumid trading volume is up 70% in 2021, company says
Electronic bond trading platform Trumid Financial has hired Bryan Harkins to lead its sales organization as chief revenue officer, a company spokesperson confirmed. Harkins comes from Cboe Global Markets Inc., where he held a variety of executive roles, most recently as president of the firm’s BIDS Trading subsidiary. Prior to that, he was executive vice president and head of markets at Cboe, leading the sales, product development and strategy for the exchange operator’s equities and options businesses, among others.

Robot Crypto Traders Are the New Flash Boys; Fast-moving token traders are jumping in line to front-run other people’s orders.
Olga Kharif – Bloomberg
Cryptocurrency traders call it the “sandwich” maneuver, and nobody wants to be the turkey caught in the middle. Here’s how it works: You spot another trader on the network trying to buy a token, such as Ether or another so-called altcoin. Then you place an order, too. If you are able to get your purchase done before the other trader, you’ll get a good deal on a coin you know there’s demand for. Your purchase pushes up the price the other buyer has to pay. Completing the sandwich, you sell for an easy profit.

High-flying Frankfurt fund manager admits large-scale insider trading; Empty office helped former Union Investment star make EUR8.1m after ‘feeling offended’ by pay rise
Olaf Storbeck – FT
A senior fund manager embarked on wide-ranging insider trading after feeling “offended” by a smaller-than-expected pay rise and suffering large losses from his investments in Wirecard, he told judges in Frankfurt on Wednesday. The 45-year-old is at the centre of an insider trading scandal that shocked Germany’s asset management community when he was arrested by police a year ago.

New Platform Backed by Fidelity, Goldman Seeks to Bring IPO Market Into Digital World; Capital Markets Gateway looks to transform business long accustomed to phone calls and pieces of paper
Corrie Driebusch – WSJ
A new technology platform backed by the biggest U.S. banks and money managers is aiming to bring the IPO market into the 21st century. The syndicate desk—a longtime fixture at banks across Wall Street where IPOs and other large stock sales are priced and allocated to investors—has long clung to traditional ways of doing business like phone orders and scribbled pieces of paper, even as other businesses go digital.

Market infrastructure consortium re-evaluates data protection as cyber threats evolve; Industry working group identifies opportunities to better protect financial market infrastructures’ data in case of cyber-attacks.
Jonathan Watkins – The Trade
A group of market infrastructures, including the DTCC, Euroclear and LCH, have teamed up to assess data protection and validation in the context of evolving cyber threats. Six infrastructure providers have delivered a new whitepaper to evaluate how Financial Market Infrastructures (FMIs) are protecting and leveraging data and explore options that firms should consider as they bolster their capabilities, including data recovery, reconciliation and replay.

Virtu Fires Opening Shot in SEC Tussle Over Trading Rules
Benjamin Bain and Katherine Doherty – Bloomberg
Firm urges rule change to show how much it saves investors; Odd lots, shorts should be included in execution data: Virtu
Virtu Financial Inc., a powerful trading firm whose business model is under scrutiny in Washington, says it can show U.S. investors how much money it saves them — if regulators let it.

China tells Evergrande to avoid dollar bond defaults, Bloomberg reports
Clare Jim, Anshuman Daga and Tom Westbrook – Reuters
Chinese regulators have asked China Evergrande Group to avoid a near-term default on its dollar bonds, Bloomberg Law reported on Thursday, the day the troubled property developer is due to make a much-awaited interest payment on its offshore debt.

Evergrande fallout could be worse than Lehman for China, warns Jim Chanos; Crisis at property developer ‘symptomatic’ of broader woes in world’s biggest emerging market, says short seller
Harriet Agnew – FT
Evergrande’s crisis could be “far worse” for investors in China than a “Lehman-type situation” because it points to the end of the property-driven growth model in the world’s second-largest economy, said short seller Jim Chanos.


Hospitals overwhelmed by covid are turning to ‘crisis standards of care.’ What does that mean?
Hannah Knowles – Washington Post
Long-feared rationing of medical care has become a reality in some parts of the United States as the delta variant drives a new wave of coronavirus cases, pushing hospitals to the brink.

Covid cases among England’s schoolchildren hit record peak; Steep jump in infections raises spectre of further educational disruption
Oliver Barnes, John Burn-Murdoch and Bethan Staton – FT
Covid-19 cases among schoolchildren in England have surged to a record high, raising the spectre of further educational disruption and a fresh wave of infections in older groups. New cases among five to 14-year-olds increased by 80 per cent week-on-week to 811 per 100,000 in the period ending September 19, eclipsing their previous peak recorded in late July.

AstraZeneca partners with VaxEquity in RNA deal; UK pharma group to commercialise 26 drug targets using technology proved by Covid vaccines
Hannah Kuchler – FT
AstraZeneca has agreed its first major deal in RNA, signing a partnership with VaxEquity to create therapeutics using the technology that first proved itself with Covid-19 vaccines.

FDA Clears Covid-19 Booster Shots From Pfizer for High-Risk People; Third dose of the vaccine was authorized for people who are 65 or older or at high risk of severe Covid-19, including from their jobs
Jared S. Hopkins and Felicia Schwartz – WSJ
U.S. health authorities cleared Covid-19 vaccine booster shots for people 65 and older and certain other adults at high risk of severe illness, a bid to help curb the pandemic and the dangerous Delta variant.

Exchanges, OTC and Clearing

Trumid hires Cboe electronic trading expert as chief revenue officer; New CRO will focus on the growth of Trumid’s existing business as well as protocol, product and geographic expansions.
Wesley Bray – The Trade
Fixed income platform Trumid has appointed Cboe’s former head of markets for the newly created role of chief revenue officer. Bryan Harkins will take on the role, bringing experience in the development, operation and growth of electronic trading platforms for clients across a range of asset classes. In the new role, Harkins will oversee the firm’s sales organisation, focusing on continued growth of its existing business and commercial leadership of Trumid’s protocol, product and geographic expansions.

Exclusive Networks lists on Euronext Paris
EUR365 million raised; Market capitalisation of EUR1.8 billion; 78th listing of a tech company on Euronext in 2021; 3rd listing of a tech Large Cap on Euronext Paris in 2021
Paris – 23 September 2021 – Euronext today congratulates Exclusive Networks, global cybersecurity specialist for digital infrastructures, on its listing on Compartment A of its regulated market in Paris (ticker code: EXN).

Corre Energy B.V. lists on Euronext Growth Dublin
EUR12 million raised – market capitalisation of EUR62 million; 1st cleantech to list on Euronext Dublin
Euronext today congratulates Corre Energy B.V., a hydrogen-based energy storage company, on its listing on Euronext Growth Dublin (ticker code: CORRE). Corre Energy B.V. joins a franchise of 145 cleantech companies listed on the Euronext markets representing a cumulated market capitalisation of EUR118.9 billion1 (at end August 2021). Listing on Euronext Growth provides Corre Energy B.V. with the capital to expand its business across Northern Europe and build the energy infrastructure required for the next generation.

Uncleared Margin Rules and Fixed Income – firms should start clearing
With Phases 5 and 6 of the Uncleared Margin Rules (UMR) becoming effective in September 2021 and 2022, respectively, it is interesting to look at the impact this will have on fixed income as an asset class. We asked Phillip Simons, Global Head of Fixed Income Sales, Derivatives, Funding and Financing at Eurex Clearing, to provide us with some valuable insight.

La Banque Postale joins Deutsche Börse’s GC Pooling market
La Banque Postale, one of the leading French banks active in retail banking, insurance, corporate and investment banking, and asset management, has joined Eurex Repo’s GC Pooling market after being live on Eurex Repo’s Special market since 2020. This move will allow La Banque Postale access to further deep liquidity pools via this cost-efficient and low-risk solution for secured money market trading.

New crypto ETNs on Xetra offer access to Cardano, Stellar, Tezos and a crypto basket index for the first time; Deutsche Börse further expands range of centrally cleared crypto ETNs / 21Shares expands product range on Xetra by six ETNs
Deutsche Börse
Since Thursday, six new Exchange Traded Notes (ETNs) on cryptocurrencies from the provider 21Shares have been tradable via Xetra and the Frankfurt Stock Exchange. For the first time, these offer investors access to the performance of Cardano, Stellar and Tezos as well as a crypto basket index. The latter shows the performance of a basket of cryptocurrencies currently consisting of Bitcoin, Polkadot, Ethereum, Cosmos and Cardano. In addition, two ETNs allow participation in the performance of Polkadot and Solana. All 21Shares ETNs are secured by the respective cryptocurrency.

UK lists its £10bn inaugural green gilt on the London Stock Exchange
London Stock Exchange Group)
LSEG (London Stock Exchange Group) welcomes the UK Government’s inaugural green gilt, a £10bn, 12-year bond maturing on 31 July 2033. Part of a commitment to issue two green gilts in 2021, and at least £15bn in the 2021-22 financial year, the £10bn bond admitted today is the largest sovereign green bond to list on the London Stock Exchange.

— Availability of New Exchange-Defined FOB Santos Soybeans Financially Settled (Platts) Futures/ Soybean Futures Inter-Commodity Futures Spread on CME Globex — CME
— EBS EBS Market Integration — CME
— CME STP Notices: September 23, 2021 — CME
— CME Globex Notices: September 20, 2021 — CME
— S&P 500 SPAN Combined Commodity Code Change – Effective September 23, 2021 — CME
— Update: OTC IRS New Release Advisory – Support for Flexible Fixing Date Offset (Lookback) — CME


Fintech startup Revolut to take on rivals like Robinhood with commission-free trades amid retail investing boom
Isabelle Lee – Business Insider
Fintech firm Revolut plans to offer commission-free stock trading to US clients as the London-based startup takes on rivals like Robinhood and Square amid a boom in retail investing, CNBC first reported Tuesday.

Nigerian fintech HerVest wants to bring financial inclusion to more African women
Mary Ann Azevedo – Techcrunch
After years of working in marketing for a number of financial services companies, Solape Akinpelu came to a conclusion: There was an “alarmingly low adoption” by women for financial services in her home country of Nigeria and all of Africa as a whole.

big xyt appoints head of business development for Continental Europe from Soc Gen; New head, formerly of Société Générale Corporate and Investment Banking, brings 35 years’ industry experience to big xyt.
Wesley Bray – The Trade
Market data provider big xyt has appointed a new head of business development for Continental Europe, as it looks to expand its footprint in the region. Gilles Meyruey will take on the role, bringing 35 years’ experience to big xyt after covering equities, derivatives, bonds trading, execution services management and client management.


Industry Working Group Identifies Opportunities To Better Protect Financial Market Infrastructures’ Data As Cyber Threat Landscape Continues To Evolve – New Paper, Delivered By An Industry Working Group, Identifies Options That Could Bolster Industry Capabilities Around Data Recovery, Reconciliation And Replay
An independent Industry Working Group (IWG) sponsored by the CPMI-IOSCO Working Group on Cyber Resilience (WGCR), including representatives from The Depository Trust & Clearing Corporation (DTCC), Euroclear, the Federal Reserve Bank of New York, LCH, TMX Group and the Reserve Bank of Australia, today issued a whitepaper that explores data protection and validation as the cyber threat landscape continues to evolve. Delivered to evaluate how Financial Market Infrastructures (FMIs) are protecting and leveraging data, the paper explores options that firms should consider as they bolster their capabilities, including data recovery, reconciliation and replay.

Educating boards on cybersecurity
Jennifer Plager – CUNA News
When the latest ransomware, phishing, or malware attack makes the news, information technology (IT) professionals know that boards will want to know how it will impact the credit union.
“Cyberthreats are always in the news,” says Mark Reed, senior vice president, technology, at $9 billion asset American Airlines Federal Credit Union in Fort Worth, Texas. “Boards want to know and have the assurance that we’re protected.”

LG is acquiring automotive cybersecurity startup Cybellum in a $240M deal
Ingrid Lunden – TechCrunch
LG Electronics, the Korean tech giant that once was a leading player in mobile phones but is now winding down that business, is making an acquisition that points to its ambitions in another, emerging area: next-generation automotive hardware and services. Today the company announced that it will be snapping up Cybellum, an Israeli automotive cybersecurity specialist that detects and assesses vulnerabilities in connected vehicle services and hardware by way of a “digital twin” approach.
The deal is coming in several parts, LG said.

Why Marketing Poses A Cybersecurity Threat And What To Do About It
Becca Chambers – Forbes
Humans: we’d like to believe they’re all good at the core. Unfortunately, there are a few bad apples in the bunch — or at least very opportunistic apples. When it comes to cybersecurity, the bad apples are hackers who are out to invade, profit from or damage a business. Cybersecurity has been a topic of conversation for a long time, but with so much data at our fingertips today, it feels like we’re at an inflection point where threat actors could have an advantage.
One key area that has the power to either thwart hackers or inadvertently invite them in is marketing. Here’s why marketing is so vulnerable to attackers and how marketing teams can play a critical role in combating threats.


Crypto Equated to Toxic Pre-Crisis Swaps by Banking Watchdog
Jesse Hamilton – Bloomberg
The U.S. agency that had once been the great hope of the cryptocurrency world is now issuing strong warnings to the industry that it’s in danger of echoing the toxic culture before the 2008 financial crisis.

DST Global Joins $40 Million Investment in Crypto Wallet Cobo
Zheping Huang – Bloomberg
Cobo, a Singapore-based crypto asset management and custodian platform, has raised $40 million in a Series B round led by DST Global, IMO Ventures and A&T Capital, the startup said Thursday, without disclosing its valuation.

Eurex Takes First Step in Crypto Derivatives
Shanny Basar – MarketsMedia
Eurex has launched Bitcoin ETN Futures and could eventually launch options or futures on other crypto exchange-traded notes if the derivatives arm of Deutsche Börse Group receives regulatory approval.
Randolf Roth, member of the executive board at Eurex, told Markets Media: “The Bitcoin ETN future is our first product in the crypto space and is most likely not going to be our last, but the space is receiving heavy regulatory attention.”

How Coinbase is making compliance a driver of innovation
Melissa Strait – Coinbase
At Coinbase, we think about compliance a little differently than most companies. Over the coming months, we plan to give the public a look “under the hood” at the programs and technologies we use to keep our customers safe and keep bad actors off our platforms. In addition, we will be publishing a series of research papers that explore some of the biggest challenges that our compliance teams face on a daily basis. The first looks at the misuse of crypto in funding terrorist activities across the globe.

Crypto Regulators Aren’t Very Sympathetic; Also cash offers, steak dinners, kids’ videos, NFT theft, AMC/Dogecoin and Amalgamated/Amalgamated.
Matt Levine – Bloomberg
It is conventional wisdom that big incumbent businesses love regulation. The more complicated and expensive big-bank regulation is, the harder it will be for a new bank to become big. Or in social media, as Byrne Hobart put it, “Facebook wants to be regulated, as long as everyone is regulated based on a standard set by the worst things that happen on Facebook, because that’s a world where Facebook is the only company in the world with the technical capability to host a legal comments section.”


Elizabeth Warren and Democrats Are Going After SPAC Kingpins
Heather Perlberg – Bloomberg
Elizabeth Warren and other Senate Democrats are targeting some of the biggest names behind SPACs, questioning whether the once red-hot market will trigger outsized losses for retail investors.

U.K. Vaccine Policy Is Sending Wrong Messages, Africa CDC Says
William Clowes – Bloomberg
The U.K.’s refusal to recognize Covid-19 vaccines administered in most parts of the world tells other countries it isn’t ready to work internationally on ways to end the pandemic, according to the Africa Centres for Disease Control and Prevention.

South Africa’s Ramaphosa Says Rich Nations Are Vaccine Hoarding
S’thembile Cele – Bloomberg
South African President Cyril Ramaphosa accused developed countries of acting immorally by hoarding vaccines needed in poorer nations. “Of around 6 billion doses administered worldwide, only 2% of these have been administered in Africa, which has a population of 1.2 billion,” he said in an address to the Global Covid-19 Summit. “This must be unjust and it is also immoral.”

The French are right about the Americans; Washington has always been careless of its allies in the pursuit of the US national interest
Philip Stephens – FT
Once in a while I am gripped by a heretical thought. What if the French are right about the Americans? Anyone with a passing interest in the centuries-old rivalry between France and the UK — the best of enemies as they are often called — will know that, for Les Rosbifs, it is verging on high treason to favour Paris over Washington. We Brits like to pretend we are playing Greece to America’s Rome. The truth is that we need them. For one thing, we are wholly dependent on the US for our “independent” nuclear deterrent.

Biden to Tap Crypto, Big-Bank Critic to Run Wall Street Watchdog
Saleha Mohsin, Jesse Hamilton, and Benjamin Bain – Bloomberg
OCC nominee Omarova favors shifting bank accounts to Fed; She would be first woman to serve as comptroller if confirmed
President Joe Biden plans to nominate a law professor who has criticized cryptocurrencies and advocated for the government to have a much bigger role in banking to run a top Wall Street regulator.


Ex-Broker And Radio Host Gets 35 Years For Bilking Investors Out Of $25M
Financial Adviser
A former Virginia Beach, Va., broker who hosted a syndicated radio show will spend 35 years behind bars for his role in a nationwide investment scheme that bilked hundreds of investors out of more than $25 million, according to the U.S. Attorney for Eastern Virginia. Daryl Bank, 51, of Port St. Lucie, Fla., was sentenced by U.S. District Judge Raymond A. Jackson yesterday in U.S. District Court for the Eastern District of Virginia for conspiracy, mail and wire fraud, selling unregistered securities, securities fraud and money laundering, the U.S. Attorney said.

ASIC publishes guidance on hawking reforms
ASIC has published updated regulatory guidance on the prohibition of hawking financial products. ASIC’s updated regulatory guide (RG 38) reflects the reforms to the anti-hawking regime under the Financial Sector Reform (Hayne Royal Commission Response) Act 2020, which commence on 5 October 2021.

ASIC warns of social media led ‘pump and dump’ campaigns
ASIC has noted a concerning trend of social media posts being used to coordinate ‘pump and dump’ activity in listed stocks, which may amount to market manipulation in breach of the Corporations Act 2001.

ESMA fines UnaVista trade repository EUR238,500 for EMIR data failures
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has fined trade repository UnaVista Limited EUR238,500 for eight breaches of the European Market Infrastructure Regulation (EMIR).

New Research Examines Why Some Consumers are More Vulnerable to Financial Scams
New findings from a two-year study bring researchers closer to understanding why some people are more likely to lose money to financial fraud. The FINRA Investor Education Foundation (FINRA Foundation), Better Business Bureau (BBB) Institute for Marketplace Trust, and the University of Minnesota completed the study, Exposed to Scams: Can Challenging Consumers’ Beliefs Protect Them from Fraud?, in advance of World Investor Week, October 4-10, 2021.

September 2021 Board Meeting
This week, the FINRA Board of Governors will hold its September 2021 meeting. Highlighted below are several items the Board committees will consider at the meeting. The Regulatory Policy Committee will consider several rule proposals, including: proposed enhancements to FINRA’s TRACE reporting rules for transactions in U.S. Treasury securities; and proposed amendments to FINRA Rule 2251 (Processing and Forwarding of Issuer-Related Materials) to conform with recent changes to related New York Stock Exchange rules.

CFTC Orders Michigan Man to Pay $150,000 for Registration Violation of Commodity Trading Advisor Regulation
The Commodity Futures Trading Commission today issued an order filing and settling charges against Brian Mitchell, a Michigan resident, for failing to register as a commodity trading advisor (CTA). The order requires Mitchell to pay a $150,000 civil monetary penalty and to cease and desist from any further violations of the Commodity Exchange Act. In addition, the order imposes a 3-year ban on Mitchell from trading on or subject to the rules of any CFTC-registered entity, and from engaging in any activities requiring CFTC registration.

Executive Representative Reminder and Board and Nominating Committee Members Whose Terms Will Expire at the Board’s 2022 Regular Annual Meeting; Executive Representative Reminder
NFA utilizes an electronic voting process for contested Directors’ elections, contested Nominating Committee member elections and Articles’ amendments approval votes. If elections are necessary, NFA has engaged a third-party election service provider to administer the electronic voting process. To facilitate the electronic voting process, each Member shall designate an Executive Representative who will have the Member’s sole authority to sign nominations made by petition, receive notices of Member meetings and proxy materials, complete proxy cards and provide voting instructions and cast votes on behalf of the Member. Members may designate an Executive Representative through NFA’s website. Only firm personnel who are the Security Manager or are authorized to view, update and file information in ORS may complete the Executive Representative Contact form.

Investing and Trading

Private Equity Party Is Ending and We’re Exhausted, Carlyle Says
Benjamin Robertson and Jan-Henrik Foerster – Bloomberg
The private equity dealmaking boom is peaking after a frenetic year that’s left the industry exhausted. That’s the view of Carlyle Group Inc.’s co-head of European buyouts Marco De Benedetti, who says firms have probably finished the catch-up necessary after last year’s hiatus. The trend of doing deals faster will likely remain though, which means managers need to permanently adjust how they conduct due diligence, he told the SuperInvestor forum in London on Wednesday.

Disney Builds a New Magic Kingdom in Sports Betting; The company may be wagering that the line between football and gambling will inevitably be erased.
Timothy L. O’Brien – Bloomberg
Even the Walt Disney Co., about as family-centric as a Fortune 500 corporation can be, likes sports gambling’s prospects and wants in on the action.

Environmental, Social and Corporate Governance

Female MBA Grads Earn $11,000 Less Than Male Peers, Study Finds; The gap widens to more than $60,000 a decade out from graduation.
Mary Biekert – Bloomberg
The gender pay gap for MBA graduates starts right out of school and only gets wider from there. Female business school graduates make around $11,000 less than men with the same degree, a survey released Thursday of 1,055 alumni from MBA schools from nearly 60 elite programs around the world. A decade out, that gap widens to more than $60,000.

China Bailing on Overseas Coal Should Be a Boon for Renewables
Bloomberg News
If China puts the same financial heft behind green energy in emerging nations as it has in developing fossil fuels projects overseas, it’ll be a step change for global investment in renewables.

The UK faces an energy crisis. Could nuclear play a vital role? Sellafield is at the centre of a debate over Britain’s energy past — and future
Jonathan Ford – FT
On the morning of Friday October 11 1957, a terse message landed on the desk of Sir Edwin Plowden, head of the UK’s Atomic Energy Authority. A fire had broken out at Windscale, a nuclear facility situated remotely on the north-west coast of England. The missive read: “Position has been held all night but fire [is] still fierce.”

Real carbon taxes are the next big political battle; ‘Gone will be that £19 London-Mallorca return flight on Ryanair. Our clothes, petrol, meat and coffee will all get pricier’
Simon Kuper – FT
There is “no question of the lights going out” this winter, Britain’s business secretary Kwasi Kwarteng promised MPs, ominously, as gas prices jumped. “There will be no three-day weeks or a throwback to the 1970s.”

FT Podcast Behind the Money; 2. Inside ESG: Can businesses really marry profit and purpose?
From hostile takeovers to C-suite intrigue, Behind the Money takes you inside the big business and financial stories of the moment with reporting from Financial Times journalists around the world. Hosted by Aimee Keane and produced by Oluwakemi Aladesuyi.

Moral Money Behind the Money;1. Inside ESG: Is the $1.7tn wave of sustainable investing hope or hype?
From hostile takeovers to C-suite intrigue, Behind the Money takes you inside the big business and financial stories of the moment with reporting from Financial Times journalists around the world. Hosted by Aimee Keane and produced by Oluwakemi Aladesuyi.


Deutsche Bank CFO Sees Robust Investment Banking Revenue
Steven Arons – Bloomberg
Says revenue from trading, advisory to drop less than expected; Lender to book about 700 million euros in additional costs
Deutsche Bank AG said its traders and dealmakers performed better than expected in the third quarter, allowing Germany’s largest lender to invest in initiatives to boost controls and growth.

JPMorgan will tighten the digital squeeze on UK banks; Digital-only and full-service banking customers now look increasingly similar
Helen Thomas – FT
When does a start-up have a $3tn balance sheet? When it’s JPMorgan Chase. The arrival of this nimble, digital neobank-cum-colossus of the global banking world to the UK market ups the ante for retail banks already grappling with low interest rates, higher savings rates and less borrowing.

RBC adds to its European cash equity trading division with hire from Morgan Stanley; New RBC sales trader and director previously spent 14 years at Morgan Stanley and joins the firm to expand its European cash trading division alongside two other senior new hires.
Annabel Smith – The Trade
A former institutional equities specialist at Morgan Stanley has left the bank after 14 years to join RBC as a director and sales trader based in London. Lucy Heighton joins RBC to build out its European cash equity trading group alongside two other senior new appointments.


China Tells Evergrande to Avoid Near-Term Default on Bonds
Bloomberg News
Financial regulators in Beijing issued a broad set of instructions to China Evergrande Group, telling the embattled developer to focus on completing unfinished properties and repaying individual investors while avoiding a near-term default on dollar bonds.

The Monte Paschi Crisis Could Be Good for Europe; But only if the UniCredit acquisition jumpstarts reform that Italy’s banking system needs. Already, there are grumblings among those invested in the status quo.
Rachel Sanderson – Bloomberg
Andrea Orcel is making Italy’s bank bosses nervous. Chief executive officer of UniCredit SpA since April, he has been overseeing its mooted acquisition of the best bits of Banca Monte dei Paschi di Siena — a move that unsettles the status quo in the old-school world of Italian banking. It may well touch off a new season of mergers and acquisitions.


Barstool Sports’ Dave Portnoy Wants to Sell You Hot Wings
Christopher Palmeri – Bloomberg
Podcast host will compete against Wingstop and Applebee’s; MrBeast-backer Robert Earl is behind the ghost-kitchen venture
Dave Portnoy, founder of the pop culture site Barstool Sports, has a unique talent for shape shifting. In the last year alone, the 44-year-old internet celebrity has alternated between conservative hero, meme-stock evangelist and small business savior, all while maintaining his day job as a podcast host and hard-to-please reviewer of pizza places. “This is like a faucet of grease,” he memorably described one slice.

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