China commodity trader woe a setback for Glencore

Sep 27, 2022

First Read

Hits & Takes
John Lothian & JLN Staff

Congratulations to Larry Tabb. STA announced Larry as the 2022 Dictum Meum Pactum (DMP) Award recipient.

Here is a success story for you. The Greenwood Project placed four interns at Goldman Sachs this summer and all four got full time offers.

HKEX was named Exchange of the Year – Derivatives at FOW’s Asia Capital Markets Awards 2022.

Acuiti.io and Sterling Trading Tech recently published Risk and Margin in the New Era of Volatility report.

Qontigo, which just celebrated its 3rd anniversary, is looking for a director of corporate communications.

Bloomberg has an interactive test about Europe’s Energy Crunch titled “Can You Manage the Energy Crisis?” Test your acumen against Bloomberg’s energy test.

We need to force people to go back to the office. It will help commercial office valuations and allow people to go back to living in cramped little apartments near their offices rather than larger homes in the suburbs. According to research from the Federal Reserve Bank of San Francisco, “The shift to working from home drove more than half of the increase in house and rent prices during the pandemic and will likely drive up costs and inflation going forward as the shift becomes permanent,” Bloomberg reported.

The banknotes with the image of King Charles on them won’t circulate until mid-2024, according to The New York Times. Both notes with Queen Elizabeth II and King Charles will circulate simultaneously.

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

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Nasdaq, Inc. will host its 2022 Investor Day on Tuesday, November 8, 2022 from 8:00 a.m. to 12:00 p.m. EST. The event features presentations on the company’s operations and strategy, as well as question and answer sessions with members of Nasdaq’s senior leadership team including Adena Friedman, president and CEO, and Ann Dennison, executive vice president and CFO. It will be held at Nasdaq’s headquarters in Times Square, New York. In-person attendance is by invitation only, but the public can access the live webcast from Nasdaq’s IR website. You can learn more here.~SAED

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The Spread: OPTIONS DISCOVERY EPISODE 8; LEX LUTHRINGSHAUSEN Full interview Part 2 and Term of the week
JohnLothianNews.com

In this episode of options discovery, JLN’s Alex Teng breaks down the options straddle. He also goes over key concepts you need to know to understand how a straddle works. In the second half of the video, Kevin “Lex” Luthringshausen from Tradier sits down for part two of an interview with JLN’s Alex Teng to explain what straddles are and how to use them as an options trader.

Watch the video »

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Lex Luthringshausen Full Interview Part 2; Lex Talks Options Straddles With JLN’s Alex Teng
JohnLothianNews.com

In this Options Discovery interview, Lex Luthringshausen from Tradier sits down with Alex Teng to discuss the options straddle trading strategy as well as his personal experiences as a trader. Lex is also prominent in the world of options education. You can find him at OptionsBrewTV by Tradier on YouTube, where he creates content, holds workshops, and gives free seminars for options traders at all levels.

Watch the video »

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MWE SHORT: Rich Mackey – From Golfing to Trading: Decision-Making is Key
JohnLothianNews.com

In this video from MarketsWiki Education’s World of Opportunity event in Chicago, Rich Mackey, managing director at Prime Trading, LLC, reminisces about his time as a caddie and how it prepared him for a career in finance. Mackey caddied in the Western Open as a high schooler for Jim Colbert, a PGA legend, which helped him realize the difference between being good and great is the amount of hustle you put in every day. Mackey stresses the importance of a great reputation because early in his career it served as the collateral that secured him a $10,000 loan from his mentor Bill Hagerty.

Watch the video »

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Big banks are for boomers — Why more and more young people are breaking up with their parents’ financial institutions
Serah Louis – MoneyWise
While many of the generations that came before them were happy to use just one bank for all their needs and stay loyal to the institutions their parents used before them, younger Americans are questioning that tradition. A recent report from the Bank Administration Institute (BAI) found that fewer than half of Gen Z and millennials used the same financial institution as their parents in 2021. That’s a significant drop compared to 61% of Gen Z and 54% of millennials in 2020. With a wealth of options for younger customers — that cater to their specific values and needs — big banks will need to catch up to remain relevant.
/jlne.ws/3BRwcNY

****** My cousin called me a “boomer” because he saw me dial a “1” before dialing an area code to call someone. I also bank at big banks. I am a BOOMER!~JJL

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Credit Suisse Could Look to Warren Buffett for Ideas; After a lost decade, the Swiss bank’s road to revival is littered with potholes
Paul J. Davies – Bloomberg
There are two ways to fix Credit Suisse Group AG: quickly and expensively, or slowly and expensively. Its leaders know the Swiss bank’s problems and they have a good idea of what they want the bank to become. The puzzle that Chairman Axel Lehmann and the rest of the board are struggling to solve is how to get from here to there – and how to pay for the journey.
/jlne.ws/3DXl0lz

****** And then Warren Buffett waived his magic investment wand and Credit Suisse was all good again.~JJL

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Why Even Big Tech Companies Keep Getting Hacked—and What They Plan to Do About It; Hackers keep tricking employees to gain access to corporate networks, so companies are changing their approach to make it harder to wreak havoc once they’re in
Christopher Mims – The Wall Street Journal
The companies that should know best how to fight hackers, tech firms, have reached an arresting conclusion: The weakest link in security, as it’s been since the Trojan War, is humans. Increasingly, they are taking a new approach: Trust no one. The philosophy, known as zero-trust architecture, assumes that no matter how robust a company’s external defenses are, hackers can get in. So companies need to make sure that even users inside a network can’t do serious damage.
/jlne.ws/3UGYweu

****** TRUST NO ONE! Sounds like good technology advice to me.~JJL

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City rolls out plan to revive LaSalle Street corridor by developing 1,000 new apartments, including affordable units
Brian J. Rogal – Chicago Tribune
Mayor Lori Lightfoot unveiled a plan Monday to revive the LaSalle Street corridor, a key downtown office district that suffered the double whammy of COVID-19 and the loss of several large firms to new towers rising farther west along Wacker Drive and in Fulton Market. The mayor said it’s time to take advantage of the Loop apartment boom and fill the corridor’s empty offices with new renters, including hundreds of low- and moderate-income workers typically shut out of downtown living.
/jlne.ws/3BPS5gy

******* LaSalle Street is just blocks away from the largest college campus (group of universities) in the U.S., so more housing makes a lot of sense.~JJL

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Drinking Several Cups of Coffee a Day May Be Linked to Longer Lifespan in Study
Nina Massey – Press Association
Drinking two to three cups of coffee a day could be linked to a longer lifespan, new research suggests. When compared with avoiding coffee, it was also associated with a lower risk of cardiovascular disease, the study found. The findings applied to ground, instant and decaffeinated varieties of the drink, and researchers say they suggest coffee consumption should be considered part of a healthy lifestyle.
/jlne.ws/3SAztId

****** Allan Schoenberg is going to live forever!~JJL

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Monday’s Top Three
Our top story Monday was a tie between Ken Griffin moved Citadel out of Chicago after colleague was robbed at gunpoint: report, from The New York Post, which was our number two story on Friday, and Success at Work Is Warped by Your Co-Workers’ Salaries, from The Wall Street Journal, which was our number one story on Friday. Second was a tie between the web site for The Trading Show Chicago 2022, from Terrapinn, and Best Universities for Blockchain 2022: University of Zurich, from Coindesk. And third was The financial system is still dealing with the fallout from 2008, an opinion piece from The Financial Times.

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MarketsWiki Stats
27,014 pages; 240,913 edits
MarketsWiki Statistics

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Lead Stories

China commodity trader woe a setback for Glencore; Mining group reduces supply to main broker Maike after intermediary runs into liquidity crisis
Harry Dempsey, Cheng Leng – Financial Times
Mining group Glencore faces disruption at its largest partner for selling refined copper in the Chinese market as Maike Metals International, a powerful trading house, grapples with a liquidity crisis. The slowdown in the Chinese economy and the downturn in the real estate market have caught out several domestic trading houses, leading to a string of recent scandals including missing copper at warehouses. Glencore was selling about 600,000 tonnes a year of high purity copper into China through Maike, before the Xi’an-based trading group ran into liquidity constraints, according to people familiar with the matter. That level is equivalent to a fifth of Glencore’s sales of copper metal and concentrates last year, according to its annual report.
/jlne.ws/3CdtJPr

Sam Bankman-Fried’s Alameda Research Draws Increasing Attention; As the trading firm’s influence spreads and connections come to light, so have concerns over potential conflicts of interests.
Victoria Vergolina – Bloomberg
You may have heard of cryptocurrency exchange FTX and you may have heard of its CEO and Founder, Sam Bankman-Fried. But have you ever heard of Alameda Research?
/jlne.ws/3dMGK9a

London’s Share of European IPO Haul Sinks to a 12-Year Low; UK capital accounts for just 14% of European IPOs year-to-date; City’s listings market has been losing steam since Brexit vote
Julia Fioretti – Bloomberg
London’s share of European initial public offering proceeds has shrunk to a 12-year low as Brexit’s impact and economic turmoil take their toll. Just $1.38 billion has been raised through IPOs in London so far this year, representing 14% of the European total, data compiled by Bloomberg show. That’s the lowest share since 2010, when London contributed 13% of European offering proceeds.
/jlne.ws/3Rj980a

DTCC Partners With Snowflake To Transform Financial Industry Data Ecosystem
DTCC
The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced that it is partnering with Snowflake, the Data Cloud company, to transform how data is accessed, shared and leveraged across a number of its services. Using the Snowflake Data Cloud, DTCC aims to further promote market transparency, reduce risk, and provide greater operational efficiency leveraging Snowflake data and cloud technology.
/jlne.ws/3SBuCXn

Two arrested on fraud charges linked to ‘$100mn deli’ in New Jersey; Sandwich shop became symbol of stock market exuberance after being singled out by David Einhorn
Mark Vandevelde and Stefania Palma – Financial Times
A New Jersey sandwich shop with a valuation of $100mn, which became a symbol of stock market exuberance, was at the centre of an international conspiracy that defrauded investors and wrecked the ambitions of two high-school teachers, according to an indictment unsealed in US federal court on Monday. Federal agents in North Carolina arrested Peter Coker, 80, and James Patten, 63, on securities fraud charges related to their alleged role in inflating the share price of Hometown International. Coker’s 53-year-old son Peter Coker Jr also faces charges and is still at large.
/jlne.ws/3fqXvr7

FTX Wins Auction for Bankrupt Crypto Broker Voyager Digital’s Assets; Deal follows a two-week process that saw multiple rounds of bidding
Dave Sebastian – The Wall Street Journal
Sam Bankman-Fried’s crypto exchange FTX won an auction for the assets of Voyager Digital Ltd. with a bid valued at $1.42 billion, the bankrupt cryptocurrency broker and lender said. The deal follows a competitive process that lasted two weeks, Voyager said in a statement on Monday. FTX and competing crypto exchange Binance had both made bids near $50 million, The Wall Street Journal reported earlier this month.
/jlne.ws/3fq0MXl

FTX wins Voyager Digital auction bid for $1.4 billion
David Hollerith – Yahoo Finance
Bankrupt crypto lender Voyager announced that crypto exchange FTX through its U.S. subsidiary (FTX US) has made the winning bid for its assets. The bid in the two-week auction process came in at $1.422 billion, which consists of all Voyager cryptocurrency valued at $1.311 billion at current market price and an additional consideration worth about $111 million in incremental value, according to a Voyager press release.
/jlne.ws/3xVhzbw

Bitcoin mining struggles to go green, research shows
Tom Wilson – Reuters
Bitcoin is struggling to go green, with the cryptocurrency making only slim gains in its usage of sustainable energy in the year to January, research by Cambridge university showed on Tuesday. Processing bitcoin transactions and “mining” new tokens is done by powerful computers, hooked up to a global network, that compete against others to solve complex mathematical puzzles.
/jlne.ws/3UTl8sy

Britain’s Market Rout May Entice Foreign Bidders to UK Companies; ‘M&A opportunities abound’ after pound selloff, Jefferies says; FTSE 100 company valuations are the cheapest in 11 years
Joe Easton – Bloomberg
A $300 billion rout for British stocks and a plunge in the pound is making UK companies even more attractive to foreign bidders, according to strategists. “M&A opportunities abound” Jefferies LLP’s Sean Darby wrote, noting that “UK assets are ‘cheap’ in many respects.” Valuations for FTSE 100 stocks have fallen about 30% over the past 12 months, leaving large-cap UK companies looking the least expensive in 11 years. Valuations for FTSE 250 companies have dropped about 40%.
/jlne.ws/3rbrnu3

India Unwilling to Bend for Index Inclusion to Bring in Billions; Investors seek easier compliance, operational requirements; Optimism over inclusion fuels rally in Indian sovereign bonds
Vrishti Beniwal, Ronojoy Mazumdar, and Ruchi Bhatia – Bloomberg
India has ruled out any changes to tax policies that will make it easier for the nation’s bonds to be included in global indexes, according to people familiar with the matter. The government doesn’t plan to waive capital gains taxes, and it’s concerned that foreign inflows will increase the volatility of local markets, said the people, who didn’t want to be identified discussing policy matters. Those taxes have been a stumbling block in previous negotiations.
/jlne.ws/3RfqeMI

Expensive commutes and $14 lunches: how inflation hampers back-to-work push; US workers balk at rising prices for travel, food and childcare
Taylor Nicole Rogers – Financial Times
As US business leaders work to lure employees back into offices this autumn, they have hit an unexpected roadblock: inflation. The costs of transport, food and childcare have risen faster than salaries, and some employees are saying it is not just more convenient but also cheaper to continue working from home.
/jlne.ws/3SwrADy

Energy Crunch Will Hurt Like 2009 Crash If Europe Gets It Wrong; Governments are spending hundreds of billions of euros to ease the pain of high gas prices. It may not stop a deep recession.
Craig Stirling and Elena Mazneva – Bloomberg
The economic damage from the shutdown of Russian gas flows is piling up fast in Europe and risks eventually eclipsing the impact of the global financial crisis. With a continent-wide recession now seemingly inevitable, a harsh winter is coming for chemical producers, steel plants and car manufacturers starved of essential raw materials who’ve joined households in sounding the alarm over rocketing energy bills.
/jlne.ws/3BQipHC

Ethereum’s Merge Could Mean ‘Big Headache’ for UK Taxman; UK guidelines issued in February criticized by crypto sector; Staking is likely to gain popularity after Ethereum’s ‘Merge’
Emily Nicolle – Bloomberg
An upgrade to the blockchain backing the world’s second-biggest cryptocurrency could trigger widespread tax confusion in the UK, potentially setting back the country’s efforts to establish itself as a crypto hub. After a shift known the Merge, holders of Ether can choose to lock up, or stake, their coins on the Ethereum blockchain to help validate transactions, earning yields as high as 5.2% by one estimate. That’s expected to push staking, until now the domain of more sophisticated crypto investors, into the mainstream.
/jlne.ws/3SChQYB

Tampa’s Financial Services Hub Empties Ahead of Hurricane Ian; Banks, Insurers close offices amid vast evacuation order; Storm could be one of the worst to hit Tampa since 1921
Michael Smith, David Wethe, and Lucia Kassai – Bloomberg
Tampa, one of the fastest-growing financial services hubs in the US, began emptying in a matter of hours Monday after officials ordered an evacuation of the Gulf Coast Florida city and parts of the surrounding area before the worst storm to threaten the region in a century. Banks, insurers and investment firms, including JPMorgan Chase, Fisher Investments and USAA, closed offices or allowed employees to work from home as Tampa, a metro area of 3.2 million people, prepared for the wrath of Hurricane Ian.
/jlne.ws/3dKb3xl

Russia plans to use digital rouble in settlements with China, says lawmaker
Reuters
This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine.
After launching a digital rouble early next year, Russia plans to use the currency in mutual settlements with China as it seeks to reduce Washington’s global financial hegemony, a senior Russian lawmaker said on Monday. Russia, like many countries, has been developing digital money over the last couple of years to modernise its financial system, speed up payments and head off the threat of cryptocurrencies like bitcoin gaining influence.
/jlne.ws/3UICCaJ

Ukraine Invasion

Russians run and hide from Putin’s zealous draft officials; Scale of resistance represents biggest challenge to president since war in Ukraine began
Max Seddon – Financial Times
Late on Sunday night, Ilya, a 38-year-old Muscovite, hobbled to his front door on crutches to find two officials handing him a draft notice. Ilya pointed to the cast on the leg he broke falling down the stairs a few weeks earlier, refused to sign the papers, cursed at the officials and slammed the door.
/jlne.ws/3LO6Dln

Germany Suspects Sabotage to Russia’s Nord Stream Gas Pipelines
Bloomberg News
Germany suspects the damage to the Nord Stream pipeline system used to transport Russian gas to Europe was the result of sabotage. The evidence points to a violent act, rather than a technical issue, according to a German security official, who asked not to be identified because the matter is being probed. In response to the pipeline leaks in the Baltic Sea, Denmark is tightening security around energy assets.
/jlne.ws/3DXlFUg

‘No to war!’: Anger over troop conscription rages in Russia; Thousands of men of fighting age have flocked to airports and Russia’s land border crossings, trying to avoid being called up.
Al Jazeera
Hostility towards Russia’s troop mobilisation continues as violence broke out in an impoverished ethnic-minority region and a gunman opened fire at a recruitment office, seriously wounding the commandant. A young man entered a military enlistment centre in the Siberian city of Ust-Ilimsk and shot the commander at close range on Monday morning. KEEP READING list of 4 items list 1 of 4 What if Vladimir Putin used nuclear weapons in Ukraine? list 2 of 4 Zelenskyy ‘shocked’ by Israel’s failure to give Ukraine weapons list 3 of 4 China, India call for negotiated way out of Ukraine war list 4 of 4 Russia-Ukraine war: List of key events, day 215 end of list Russian media reports said the attacker walked into the facility saying: “No one will go fight,” and “We will all go home now.” Local authorities said the commandant was in intensive care in “extremely grave” condition.
/jlne.ws/3Cdjevv

Russia’s economy will ‘die by winter’ because of military mobilization
Yvonne Lau – Fortune
In the seven months since Russia invaded Ukraine, some have argued that the international sanctions levied against Russia weren’t strong enough as Russians continued to travel, shop, party—and generally lead a normal life. Now, an action by Russian President Vladimir Putin could be the catalyst that brings the war home to Russians and plunges the economy into real catastrophe.
/jlne.ws/3rcTYiI

Putin’s War Has Come Home to Russia; The “partial mobilization” of reservists may have sowed unrest, but by deepening the engagement of ordinary Russians, it will sharpen the conflict for both Russia and Ukraine.
Leonid Bershidsky – Bloomberg
The so-called “partial mobilization” announced by Vladimir Putin last week has changed the character of the Ukraine war for Russians in a matter of days. And for all the ensuing scenes of disarray and unrest within Russia, the mobilization’s impact will soon change the character of the war for Ukrainians, too.
/jlne.ws/3UJHcpq

Putin’s nuclear threats cannot be ignored; The Russian leader is trying to intimidate western nations but he is also desperate and cornered
Gideon Rachman – Financial Times
We have now reached the point in the Ukraine war that western policymakers have both hoped for and worried about for many months. Even as they made the decision to supply Ukraine with the missiles that changed the course of the war, US officials were aware of the double-edged nature of their choice. As one of them put it back in May: “The better the Ukrainians do, the more dangerous the situation will become.”
/jlne.ws/3xVZcD2

Google Sees Russia Coordinating With Hackers in Cyberattacks Tied to Ukraine War; ‘We have never previously observed such a volume of cyberattacks, variety of threat actors, and coordination of effort,’ report says; some U.S. institutions have been targeted
Robert McMillan and Dustin Volz – The Wall Street Journal
A growing body of evidence suggests that pro-Russian hackers and online activists are working with the country’s military intelligence agency, according to researchers at Google. Western officials and security experts are interested in the possible Kremlin links because it would help explain Moscow’s intentions both inside and outside Ukraine despite recent military setbacks that prompted Russian President Vladimir Putin this week to announce a mobilization push.
/jlne.ws/3UV2Zuv

Exchanges, OTC and Clearing

LCH SwapAgent Processes First CIBOR/SOFR Cross Currency Basis Swap Between Nordic Banks
Mondovisione
LCH SwapAgent today announced it has registered its first CIBOR/SOFR* cross-currency basis swap between two Nordic Banks. Nordea Bank Abp and Danske Bank A/S were the counterparties to the trade, brokered by ICAP. As a service offering standardisation for the non-cleared derivatives market, the trade highlights LCH SwapAgent’s capability to facilitate a coordinated transition to risk free rates for non-cleared OTC derivatives.
/jlne.ws/3DXu0Hh

ICE and Confluence to Offer Integrated ESG Solution for Enhanced SFDR Compliance Reporting
ICE
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology, and market infrastructure, and Confluence, a global leader in analytics and regulatory compliance reporting solutions for the investment management industry, announced that Confluence will leverage ICE’s Environmental, Social and Governance (ESG) data as part of its ESG Sustainable Finance Disclosure Regulation (SFDR) solution, bringing clients a single service that is designed to reduce the time and money needed to comply with this regulation.
/jlne.ws/3Siq6NI

Celebrating the first anniversary of the ESG Fixed Income segment
Eurex
Euro Corporate SRI Index Futures & Green Bond Index Futures were the first derivatives of their kind to be listed by an exchange. Fixed income ESG futures on bond indices offer a standardized and reliable solution for gaining exposure to fixed income ESG market segments. The products were launched on 27 September 2021 and complemented Eurex’s established equity index ESG Derivatives offering.
/jlne.ws/3dNebZk

Notice Of Disciplinary Action
CME
Non-Member: Randy Chen
Comex Rule Violation: Rule 575 Disruptive Practices Prohibited (in part); All orders must be entered for the purpose of executing bona fide transactions. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes. A. No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.
/jlne.ws/3r8X9I4

Notice Of Disciplinary Action
CME
Non-Member: Randy Chen; Cbot Rule Violation: Rule 575 Disruptive Practices Prohibited (In Part) All Orders Must Be Entered For The Purpose Of Executing Bona Fide Transactions. Additionally, All Non-Actionable Messages Must Be Entered In Good Faith For Legitimate Purposes. A. No Person Shall Enter Or Cause To Be Entered An Order With The Intent, At The Time Of Order Entry, To Cancel The Order Before Execution Or To Modify The Order To Avoid Execution.
/jlne.ws/3BQFolR

Notice Of Disciplinary Action
CME
Non-Member: Randy Chen; CME Rule Violation: Rule 575 Disruptive Practices Prohibited (In Part); All Orders Must Be Entered For The Purpose Of Executing Bona Fide Transactions. Additionally, All Non-Actionable Messages Must Be Entered In Good Faith For Legitimate Purposes. A. No Person Shall Enter Or Cause To Be Entered An Order With The Intent, At The Time Of Order Entry, To Cancel The Order Before Execution Or To Modify The Order To Avoid Execution.
/jlne.ws/3E190j0

Notice Of Disciplinary Action
CME
Member: Tanius Technology Llc; Comex Rule Violations: Rule 432. General Offenses (In Part) It Shall Be An Offense: W. For Any Party To Fail To Diligently Supervise Its Employees And Agents In The Conduct Of Their Business Relating To The Exchange.
/jlne.ws/3UHBdkU

Notice Of Disciplinary Action
CME
Member: Tanius Technology Llc; CME Rule Violations: Rule 432. General Offenses (In Part). It Shall Be An Offense: W. For Any Party To Fail To Diligently Supervise Its Employees And Agents In The Conduct Of Their Business Relating To The Exchange.
/jlne.ws/3SCePrf

Special Arrangement for Acceptance of HKD or USD as Collateral for the Early; Release of China Connect Securities that are Securities-on-hold for the Shanghai
and Shenzhen holidays
HKEX
To assure that safeguards are in place against currency exchange rate risk during the period of holidays from 01 to 07 October 2022 of Shanghai and Shenzhen markets, HKSCC will temporarily adjust the haircut rates for acceptance of HKD or USD as collateral for the early release of China Connect Securities that are Securities-on-hold as follows.
/jlne.ws/3LO2UnT

Risk Management Arrangements in respect of Chung Yeung Festival
HKEX
All markets operated by the Hong Kong Futures Exchange will be closed for business on 4 October 2022, except MSCI Futures and Options1. In order to assure that safeguards are in place against potential market risks that may arise during the aforesaid period when some of the major markets are open, Participants are kindly reminded to adopt the following risk management measure.
/jlne.ws/3r8AITk

Amendments To The Rules Of Bourse De Montreal Inc. For Position Limits Of Narrow Based Index Futures Contracts
TMX
On May 2nd, 2022, the Rules And Policies Committee Of Bourse De Montréal Inc. (the “bourse”) and on April 19, 2022, the Special Committee Of The Regulatory Divison Of The Bourse approved amendments to the articles 6.309b, 12.707, 12.807, 12.907, 12.1007, 12.1107 et 12.1207 of the rules of Montreal Exchange in order to modify the position limits of narrow-based index futures contracts and allow position limits defined on a per product basis as opposed to the current fixed level of 20,000 contracts.
/jlne.ws/3dNgfAy

MIAX Options: Extension Of SPIKES Options Market Maker Incentive Program Until Friday, December 30, 2022
Mondovisione
MIAX Options has extended the monthly Market Maker Incentive Program (the “Incentive Program”) for SPIKES Options until Friday, December 30, 2022.
/jlne.ws/3LJBjVb

Borsa Istanbul: Uptick Rule Will Be Applied In The Session Dated 27/09/2022 In The Equity Market
Mondovisione
It has been decided that the up-tick rule in short selling transactions to be valid for one day during the session dated 27/09/2022. Please click for the related Announcement.
/jlne.ws/3SGhwZ3

Nasdaq Announces Mid-Month Open Short Interest Positions in Nasdaq Stocks as of Settlement Date September 15, 2022
Nasdaq
At the end of the settlement date of September 15, 2022, short interest in 3,449 Nasdaq Global MarketSM securities totaled 10,247,432,237 shares compared with 10,037,516,423 shares in 3,449 Global Market issues reported for the prior settlement date of August 31, 2022. The mid-September short interest represents 3.03 days compared with 3.13 days for the prior reporting period.
/jlne.ws/3DXg3ZX

Changes in Nifty Fixed Income indices
NSE
The Index Maintenance Sub-Committee (Debt) of NSE Indices Limited, as part of its periodic review, announces the following changes in Nifty fixed income indices: 1. Quarterly review of Nifty Corporate Bond Indices: These changes shall become effective from October 03, 2022.
/jlne.ws/3Sjojb1

Circular of Shanghai International Energy Exchange on Trading Adjustments for the National Day 2022
SFE
Shanghai International Energy Exchange has released its Circular on Trading Adjustments for the National Day 2022 as follows: In accordance with Trading Schedule during National Holidays for Year 2022 and Risk Management Rules of the Shanghai International Energy Exchange, Shanghai International Energy Exchange (hereinafter referred to as “INE”) hereby notifies the trading adjustments for the National Day 2022 as follows: 1. The market will be closed from 3:00 p.m. of September 30, 2022 to October 9, 2022.
/jlne.ws/3dJIYpM

Fintech

LPA Launches Contract Navigator, A New Document Automation Platform For Financial Markets – The New Platform Helps Users Reduce Cost, Accelerate Time To Market And Deliver Industry Best Practices
Mondovisione
LPA, the global capital markets software provider and advisory firm, announced the launch of Contract Navigator, a new platform designed to fully automate and digitalise all content, agreements and processes for financial markets. The platform is asset class agnostic and functions across corporate and commercial lending, OTC trading and clearing. Contract Navigator optimises and automates the processes and generation of content such as term sheets and trading agreements in line with the industry standards provided by ISDA, LMA, LSTA, GMRA, GMSLA or bespoke to a bank’s internal policies and requirements.
/jlne.ws/3xT4IXi

The evolution of EMS: Where are we now? With growing client expectations and a continuously shifting market landscape, WESLEY BRAY looks at the evolution of EMS, how tech providers are adapting to changes in the market and how they remain competitive.
Wesley Bray – The Trade
The Execution Management System (EMS) arena has in the past been undeniably monolithic, with several established vendors dominating the space. While incumbent players continue to dominate, various new players have entered the space, offering alternatives as a means of differentiation and to position themselves in what has proved to be a highly competitive landscape. These challengers believe that there is room for new vendors in the EMS space. But how exactly are EMS platforms adapting to meet the evolving demands of their users – and how easy is it to exist in this highly competitive marketplace?
/jlne.ws/3xWMDaz

LCH SwapAgent registers cross currency basis swap between Nordea Bank and Danske Bank; The move underlines LCH SwapAgent’s ongoing support of the industry transition to risk free rates.
Wesley Bray – The Trade
LCH SwapAgent has processed its first CIBOR/SOFR cross-currency basis swap between two Nordic banks. The two counterparties to the trade were Nordea Bank and Danske Bank, brokered by ICAP.
/jlne.ws/3RbCqhv

Refinitiv alumnus joins FX HedgePool as head of business development; Incoming head has spent the last 21 years at Refinitiv, most recently serving as Americas head of transactions sales and relationship management for FXall and matching.
Wesley Bray – The Trade
Foreign exchange matching platform FX HedgePool has appointed Karen Phillips as head of business development. Based in New York, Phillips will oversee the firm’s sales and relationship management efforts, reporting directly to Jay Moore, chief executive and co-founder of FX HedgePool.
/jlne.ws/3frpeYk

Enfusion’s vice president of sales joins United Fintech in similar role; New head of sales brings 10 years’ experience in the fintech sector to the firm, having previously served at SimCorp and ICAP.
Wesley Bray – The Trade
Start-up United Fintech has expanded its sales team with the appointment of Raj Rathor as head of sales for Athena Systems. Rathor joins the firm from Enfusion, where he served as vice president of sales. He brings 10 years’ experience in the financial technology sector to United Fintech, including product management and pre-sales engineering roles at buy-side vendor SimCorp.
/jlne.ws/3BNDToy

Cybersecurity

Government flags new cybersecurity laws and increase in fines after Optus breach
Sarah Martin and Paul Karp – The Guardian
The Albanese government will pursue “very substantial” reforms in the wake of the massive Optus data breach, including increasing penalties under the Privacy Act that are currently capped at $2.2m. As the government flags it will push ahead with legislative changes, hundreds of public servants from the Australian Signals Directorate, the Australian Cyber Security Centre and the Australian federal police were deployed to help manage the fallout from the data breach, with the government also working with banks to prevent further fraud.
/jlne.ws/3Ss1Atc

Cybersecurity Just Became a Board Issue for Real
Devin Jones – InformationWeek
Cybersecurity has been a “hot potato” issue for years. Companies know significant risks exist but don’t have any method to calculate their budgetary priority. The media continues to report massive cybercrime statistics, and board members scratch their heads, wondering what they should focus on concerning cybersecurity. However, the industry hasn’t figured out how strategically frame that conversation.
/jlne.ws/3CcFRQt

How To Lead A Cybersecurity Team
Francis Dinha – Forbes
I’ve been leading teams in the security space for decades now. I’ve served as the CTO and CEO of multiple tech companies, and I co-founded OpenVPN Inc., a company entirely focused on keeping business networks secure. In leading these kinds of groups, I’ve noticed a few similarities—a few elements that, when implemented correctly, can make all the difference as you develop your team. Some leadership strategies are universal across any industry, to be sure, but some particularly stand out here. Whether you’re leading an entire company focused on network security or you’re a CISO or an IT admin for another organization, there are some essential things to keep in mind.
/jlne.ws/3DWO9NP

What Will it Take to End the Public Sector’s Cybersecurity Talent Gap?
Tom Kennedy – Nextgov
Everything gets more complex over time. That’s true according to the second law of thermodynamics and of the cybersecurity skills gap. A decade ago, the cybersecurity industry suffered a shortage of 10,000 professionals. Today, that number has reached 2.72 million. How did we manage to get to this point? For one, the approach to solving the cybersecurity talent gap focuses too much on filling experienced positions and not enough on welcoming true entry-level candidates. Nearly 400 cybersecurity programs exist in the U.S. today, but there aren’t enough entry-level positions open within the public sector to meet the demand from graduating students.
/jlne.ws/3LKuHWk

Cryptocurrencies

Nearly $1 million in crypto stolen during Ethereum ‘vanity address’ hack
Anushree Dave – MarketWatch
Roughly $950,000 in crypto was stolen in an attack using a vanity-address generator called Profanity, according to a blockchain security firm PeckShield, citing on-chain data from EtherScan. A “vanity address” is a cryptocurrency address with defined parameters created by the users of the address. These addresses are more vulnerable to brute force attacks because they’re human-generated, instead of being a random string of letters and numbers created by a machine, something that GitHub users discovered earlier this year. The hackers took 732 $ETH on Sep. 25 before moving the funds to the U.S. government sanctioned crypto mixer Tornado Cash, according to a tweet from blockchain security company PeckShield.
/jlne.ws/3rciDns

Crypto Fugitive Do Kwon Says He Isn’t Hiding From Authorities
Sangmi Cha – Bloomberg
Terraform Labs co-founder Do Kwon, who faces South Korean charges over a $60 billion cryptocurrency wipeout, denied he’s in hiding after authorities said Interpol had issued a red notice for his arrest. Kwon took to Twitter on Monday to say that he’s “making zero effort to hide,” adding “I go on walks and malls.” Prosecutors in Seoul earlier said Interpol had requested law enforcement worldwide to locate and arrest the fallen 31-year-old crypto entrepreneur. Officials have accused Kwon and five others of crimes including breaches of capital-markets law.
/jlne.ws/3E17y02

Japan to Toughen Remittance Rules to Fight Money Laundering Using Crypto: Report
Amitoj Singh – CoinDesk
The Japanese government is planning to introduce new rules for remittances directed at stopping criminals from using cryptocurrency exchanges to launder money, according to a Nikkei report.
/jlne.ws/3fo2BnS

Coinbase Denies Proprietary Trading. There Are Other Ways to Make Money.
Jack Denton – Barron’s
Coinbase stock has plunged this year amid a broad selloff in risk-sensitive assets and a slowdown in key crypto trading volumes. But the embattled company still has other ways to make money beyond its core business of collecting fees from customer trades.
/jlne.ws/3SjKsWK

China Arrests 93 for Crypto-Related Money Laundering; Bank of America Says Crypto Is Acting as Risk Asset
CoinDesk
Interpol has issued a Red Notice for Terraform Labs co-founder Do Kwon, according to a report from Bloomberg. Authorities in China’s Hunan province arrested 93 people for allegedly laundering up to RMB 40 billion ($5.6 billion) using crypto. Digital assets continue to act as risk assets, falling as global interest rates rise, Bank of America (BAC) said in a research report Friday.
/jlne.ws/3E1fMoX

FTX to acquire assets of bankrupt Voyager Digital with US$1.422 billion bid
Oisin Mcilroy – Forkast
Billionaire Sam Bankman-Fried’s cryptocurrency exchange FTX US will acquire all the assets of bankrupt cryptocurrency brokerage Voyager Digital, beating off rivals with a US$1.422 billion bid.
/jlne.ws/3UFJUfv

Upbit exchange to use LUNC fees to set up crypto monitoring center
Danny Park – Forkast
Upbit, South Korea’s largest cryptocurrency exchange, is using fees it collected from Luna Classic (LUNC) transactions to establish a crypto monitoring center in a gesture to help compensate for the losses from the Terra-LUNA debacle, according to local media reports.
/jlne.ws/3UGI3qM

Galaxy Digital Partners With Chainlink to Offer Crypto Price Data on Chain
Michael Bellusci – CoinDesk
Financial services firm Galaxy Digital (GLXY.TO) has teamed up with Chainlink Labs to bring crypto pricing data to blockchains. The initiative will utilize Chainlink’s oracle network, and the data will be directly distributed to multiple blockchain applications including those in the DeFi ecosystem. “Blockchains don’t come preloaded with external data, so we’re providing reference prices for spot digital assets that will be able to power a variety of complicated financial structures that only have traditionally been the domain of our existing financial system,” Zane Glauber, Galaxy’s head of strategic opportunities, told CoinDesk.
/jlne.ws/3LNHR55

Leading Institutional Digital Asset Custodian Komainu Appoints Nicolas Bertrand As CEO
Mondo Visione
Komainu (“the Company”), the European leading regulated digital asset custody built by institutions for institutions, today announced the appointment of Nicolas Bertrand as its Chief Executive Officer to lead Komainu throughout its next growth phase and further help bridge the worlds of traditional and decentralised finance for institutions.
/jlne.ws/3SAElwZ

Talos Expands EU And US Teams With Key Hires In Sales & Business Development – Leading Institutional Digital Asset Technology Provider Continues Expansion, Adds Three New Team Members
Mondo Visione
Talos, the premier provider of institutional digital asset trading technology, today announced three key hires – Frank van Zegveld as Head of Sales EMEA, Matt Houston as Client Success Director and Hillary Conley as Business Development Director. These appointments continue the global expansion of the Talos team on the heels of the company’s $105 million Series B funding round earlier this year, valuing Talos at $1.25 billion.
/jlne.ws/3LKqKkH

Do Kwon says he is not hiding as crypto manhunt intensifies; Co-founder of collapsed operator Terraform Labs says he has not seen his name on Interpol red list
Song Jung-a – Financial Times
The co-founder of collapsed cryptocurrency operator Terraform Labs has broken his silence after Interpol issued a red notice against him, stressing that he is not in hiding despite an escalating global manhunt. Do Kwon has remained active on social media as the threat of prison hangs over him in South Korea. He wrote on Twitter on Monday that he was making “zero effort to hide. I go on walks and malls”, hinting that there had been no change in his routine.
/jlne.ws/3BR4ila

Disney’s Latest Job Posting Hints at Big Plans for NFT and Crypto Adoption
Rosie Perper – CoinDesk
The Walt Disney Company posted a job listing on Friday for a principal counsel specializing in non-fungible tokens (NFT) and decentralized finance (DeFi), hinting at its broader Web3 expansion across the Disney ecosystem.
/jlne.ws/3xUowJy

Politics

New York Attorney General James Sues Cryptocurrency Platform For Operating Illegally And Defrauding Investors – Nexo Failed To Register As Required By New York Law And Lied To Investors About Their Registration
Mondo Visione
New York Attorney General Letitia James today joined seven state securities regulators in suing cryptocurrency companies Nexo Inc. and Nexo Capital Inc. (Nexo), for failing to register with the state as securities and commodities brokers or dealers and for lying to investors about their registration status. Despite warnings from the Office of the Attorney General (OAG) to register as a securities and commodities broker or dealer, Nexo failed to register and misrepresented to investors that they are a licensed and registered platform. In New York, entities engaging in the offer, purchase, or sale of securities or commodities, including cryptocurrency platforms, must register with OAG if they are operating within the state or offering their products to New Yorkers. Through her lawsuit, Attorney General James seeks disgorgement of any revenues derived from Nexo’s unlawful conduct and restitution for investors.
/jlne.ws/3Cf2VOT

How Donald Trump got his Deutsche Bank loans
Scott Nover and Nate DiCamillo – Quartz
Deutsche Bank has emerged as the star witness in New York attorney general Letitia James’ case against Donald Trump and the Trump Organization. In a suit filed last week, James accused Trump and his organization of defrauding the German investment bank and others by exaggerating the value of his properties. Deutsche Bank, which extended Trump hundreds of millions of dollars in loans for hotel and resort development projects in the past decade, is cooperating with her office’s investigation, James said at a press conference.
/jlne.ws/3DTytLn

Biden Tells Oil Companies ‘Bring Down Prices You’re Charging’
Simon Casey and Jennifer Jacobs – Bloomberg
While US gasoline prices have come down from the highs seen this summer, they’re clearly still weighing on President Joe Biden, who on Monday repeated demands for oil companies to charge less.
/jlne.ws/3dLX4Hf

Biden Kicks the Can on Crypto. For Now.
Joe Light – Barron’s
Anyone hoping for clear regulatory guidance from Washington on cryptocurrencies might just have to wait. The White House released a series of reports on crypto earlier this month, calling it the first-ever comprehensive framework for digital assets—but some Wall Street analysts and crypto industry officials aren’t buying it.
/jlne.ws/3SDvKcS

The scramble for rare earths carries big geopolitical risks; But without these metals there are limited solutions to our planetary problems
Misha Glenny – Financial Times
The war in Ukraine has demonstrated just how inadvisable over-dependence on a single supplier can be. Russia’s dominance in the European gas market turned into a geopolitical nightmare in the space of a few weeks. Just imagine if a single country provided you with 90 per cent of your needs for essential commodities. Now imagine how you’d feel if that country was China. Actually, we don’t need to use our imagination because that is exactly the reality for Europe’s galloping consumption of rare earth metals.
/jlne.ws/3CdmIxT

Kwarteng Heads for a Tough Meeting With London’s Top Bankers; Shares in banks have been battered since fiscal bombshell; New chancellor faces serious questions over UK’s markets rout
Katherine Griffiths, Harry Wilson, and William Shaw – Bloomberg
A Tuesday meeting between the Chancellor of the Exchequer and top British financiers was supposed to be a broad discussion about his plans to unleash growth. The pound’s plunge and the brutal sell-off of government debt may make it more of a crisis summit for the finance industry.
/jlne.ws/3LK3ZNH

Truss learns the hard way that Britain isn’t America; Reaganism is a good idea, but Reaganism without the dollar isn’t
Janan Ganesh – Financial Times
Into Brideshead Revisited, near the middle, Evelyn Waugh crowbars a scene on a cruise ship for the express purpose of mocking Americans. There is a character named “Senator Stuyvesant-Oglander”. Each and every drink has ice in it. No one is able to tell friendship from desperate bonhomie. The crustiest of England’s great novelists wrote better stuff, no doubt, but the passage is an illuminating fragment of a time when anti-Americanism was a Tory thing.
/jlne.ws/3r8Dzf0

Energy Crunch Will Hurt Like 2009 Crash If Europe Gets It Wrong; Governments are spending hundreds of billions of euros to ease the pain of high gas prices. It may not stop a deep recession.
Craig Stirling and Elena Mazneva – Bloomberg
The economic damage from the shutdown of Russian gas flows is piling up fast in Europe and risks eventually eclipsing the impact of the global financial crisis. With a continent-wide recession now seemingly inevitable, a harsh winter is coming for chemical producers, steel plants and car manufacturers starved of essential raw materials who’ve joined households in sounding the alarm over rocketing energy bills.
/jlne.ws/3xVqp

Regulation

Helena Morrissey quits as AJ Bell chair after FCA blocks board role for founder; Regulator objects to fund platform’s founder Andy Bell remaining on board having stepped down as chief
Joshua Oliver – Financial Times
AJ Bell’s chair Lady Helena Morrissey has resigned from the fund platform after a disagreement with the Financial Conduct Authority over the future role of the company’s founder Andy Bell. Bell, 56, who built the company into one of the UK’s biggest fund supermarkets, announced plans in June to step down as chief executive and become non-executive deputy chair.
/jlne.ws/3UHuKq7

CFTC Orders California Trader and Prop Firm to Pay $750,000 for Spoofing in Treasury Futures CFTC
The Commodity Futures Trading Commission today issued two orders simultaneously filing and settling charges against Randy Chen (Chen), a California resident, and Tanius Technology, LLC (Tanius), a proprietary trading firm headquartered in California, for spoofing in 12 futures contracts—primarily, but not exclusively, Treasury futures contracts—on the Chicago Mercantile Exchange (CME). The order against Chen requires him to pay a $150,000 civil monetary penalty; suspends him for six months from trading on or subject to the rules of any CFTC-designated exchange and all other CFTC-registered entities and in all commodity interests; and orders him to cease and desist from violating the Commodity Exchange Act’s spoofing prohibition. In addition, the order against Tanius requires it to pay a $600,000 civil monetary penalty.
/jlne.ws/3fc7MqK

CFTC Orders Wisconsin Resident and Company to Pay Over $190,000 for Failing to Register as an Introducing Broker and Other Violations
CFTC
The Commodity Futures Trading Commission today issued an order filing and simultaneously settling charges against Jason Gospodarek (Gospodarek) and Quantum Financial Network, LLC (Quantum Financial), both located in Wisconsin, for their failure to register as an introducing broker, and against Gospodarek for his failure to register as an associated person of a commodity trading advisor, as required by the Commodity Exchange Act (CEA). Gospodarek is Quantum Financial’s principal and only employee.
/jlne.ws/3dP45Hh

CFTC Commissioner Christy Goldsmith Romero Calls for Nominations and Topics for the Technology Advisory Committee
CFTC
Commodity Futures Trading Commission Commissioner Christy Goldsmith Romero, sponsor of the Technology Advisory Committee (TAC), today called for committee-membership nominations and potential topics for TAC meetings.
/jlne.ws/3BPRjjE

CFTC Orders Texas Commodity Trading Advisor to Pay $200,000 for Failing to Register as a Swap Execution Facility
CFTC
The Commodity Futures Trading Commission today issued an order simultaneously filing and settling charges against Asset Risk Management, LLC (ARM), a registered Commodity Trading Advisor headquartered in Houston, Texas, for failing to register as a swap execution facility (SEF). The order requires ARM to pay a $200,000 civil monetary penalty and to cease and desist from any further violations of the Commodity Exchange Act (CEA) and CFTC regulations, as charged.
/jlne.ws/3LOzpCo

SEC Charges Father-Son Duo and Associate in Market Manipulation Schemes Resulting in a New Jersey Deli with a $100 Million Valuation
SEC
The Securities and Exchange Commission today charged Peter L. Coker Sr., Peter L. Coker Jr., and James T. Patten for their roles in orchestrating fraudulent manipulative securities trading schemes. These schemes included artificially inflating the share price of Hometown International, which operated a New Jersey deli producing less than $40,000 in annual revenue, from approximately $1 per share in October 2019 to nearly $14 per share by April 2021, leading to a grossly inflated market capitalization of $100 million.
/jlne.ws/3LK3JOJ

SEC Charges Fraud in Real Estate Investment Offering
SEC
The Securities and Exchange Commission today announced charges against a Texas real estate developer and two other people for operating a fraudulent real estate investment offering that raised over $26 million from more than 100 investors.
/jlne.ws/3CdRMxC

SEC Charges Florida Resident with Operating a $2.3 Million Ponzi Scheme Targeting Haitian-American Community
SEC
The Securities and Exchange Commission today charged Miami-Dade County resident Judith Paris-Pinder alleging that she fraudulently raised approximately $2,300,000 from over 280 investors through an unregistered securities offering, targeting members of the Haitian and Haitian-American community in South Florida and elsewhere.
/jlne.ws/3r9s5I2

SEC Charges Georgia Brothers in Fraudulent “Free-Riding” Scheme
SEC
The Securities and Exchange Commission today charged brothers Sang N. Phan and Rich N. Phan (the “Phans”) of Columbus, Georgia, with conducting a fraudulent “free-riding” scheme in which they attempted to profit by purchasing and selling stocks without paying for them.
/jlne.ws/3SEEbVE

$100 million New Jersey deli scheme leads to U.S. fraud charges
Jonathan Stempel – Reuters
Three men, including a father-and-son duo, were criminally charged on Monday with orchestrating a market manipulation scheme that briefly caused the owner of a tiny New Jersey deli to have a more than $100 million market valuation. Peter Coker Sr, 80, Peter Coker Jr, 53, and James Patten, 63, were charged by the U.S. Department of Justice in a 12-count indictment with securities fraud and conspiracy, while Patten was also charged with wire fraud, money laundering and securities manipulation. The U.S. Securities and Exchange Commission filed related civil charges.
/jlne.ws/3SlAIeS

Modalities related to Investment Adviser applications
SEBI
SEBI, vide circular ref. 2021/579 dated June 18, 2021, granted recognition to BSE Administration and Supervision Ltd. (BASL), a wholly owned subsidiary of BSE to act as an Investment Adviser Administration and Supervisory Body (IAASB) for a period of three years from June 01, 2021 in terms of Regulation 14 of SEBI (Investment Advisers) Regulations, 2013 (SEBI IA Regulations). As per the provisions of Regulation 14(2) of SEBI IA Regulations, the administration and supervision of Investment Advisers (IAs) has been delegated to BASL.
/jlne.ws/3SzEmRV

SIFMA Fixed Income Market Close Recommendations In The U.S.,The U.K., And Japan For U.S. Columbus Day And Japan Health And Sports Day Holidays
SIFMA
SIFMA has confirmed its previous holiday recommendation for a full market close on Monday, October 10, 2022, for the trading of U.S. dollar-denominated fixed income securities in the U.S., the U.K., and Japan in observance of the U.S. Columbus Day and Japan Health and Sports Day holidays. These recommendations apply to trading of U.S. dollar-denominated government securities, mortgage- and asset-backed securities, over-the-counter investment-grade and high-yield corporate bonds, municipal bonds and secondary money market trading in bankers’ acceptances, commercial paper and Yankee and Euro certificates of deposit.
/jlne.ws/3Cf2i7Z

How regulation can prepare the ground for economic growth
FCA
Speech by Sarah Pritchard, Executive Director, Markets, at City and Financial Global’s ‘The Future of UK Financial Services Regulation’ Summit.
Note: This is a drafted speech and may differ from the delivered version
What are the magic ingredients to ensuring sustainable growth? And how can regulators ensure that the rules and action they take help growth to take root and flourish perennially? When I first got my allotment, it was wildly overgrown.
/jlne.ws/3CdscZv

Investing and Trading

Everything-Selloff on Wall Street Deepens on 98% Recession Odds; Traders fret over strong dollar, earnings outlook, UK turmoil Risk of severe global recession is rising, say NDR strategists
Vildana Hajric and Isabelle Lee – Bloomberg
Monday brought a stark warning for Wall Street daredevils: Stocks are still in free fall and bearish sentiment is far from getting exhausted — especially with hawkish central bankers rattling recession-obsessed markets like this. The S&P 500 just sank to the lowest since December 2020, bringing this month’s losses to nearly 8%, as the pound weakened to records while commodities buckled under the weight of a hulked-up dollar. US Treasury yields continued to rise, with the 10-year rate climbing as much as 21 basis points to 3.898%, its highest level since April 2010.
/jlne.ws/3dHotdv

Traders Who ‘Just Want to Survive’ Sit on $5 Trillion Cash Pile; Nowhere-to-hide market keeps asset managers on defensive; For first time in years, money funds are offering juicy yields
Liz McCormick, Alex Harris, and Mary Biekert – Bloomberg
From stocks to bonds, credit to crypto, money managers looking for somewhere to hide from the Federal Reserve induced storm battering virtually every asset class are finding solace in a long reviled corner of the market: cash. Investors have $4.6 trillion stashed in US money-market mutual funds, while ultra-short bond funds currently hold about $150 billion. And the pile is growing. Cash saw inflows of $30 billion in the week through Sept. 21, according to figures from EPFR Global. Where once that stash yielded practically nothing, the vast bulk now earns upwards of 2%, with pockets paying 3%, 4% or more.
/jlne.ws/3dGQvWB

Lumber Prices Fall Back to Around Their Pre-Covid Levels; Rising interest rates have taken an ax to one of the pandemic’s hottest commodities
Ryan Dezember – Bloomberg
Lumber prices have fallen to their lowest level in more than two years, bringing two-by-fours back to what they cost before the pandemic building boom and pointing to a sharp slowdown in construction. Lumber futures ended Monday at $410.80 per thousand board feet, down about one-third from a year ago and more than 70% from their peak in March, when the Federal Reserve began raising interest rates to fight inflation.
/jlne.ws/3Ri193q

Markets take fright over Britain’s economic strategy; Government and Bank of England must restore faith in the credibility of policy
The editorial board – Financial Times
It is a sign of how badly confidence in Britain’s economy has been shaken that on the day Italy seemed set to have its first far right-led government since the war, investors were more preoccupied by the new UK government’s radical shift in policy. Sterling had already hit a 37-year low after chancellor Kwasi Kwarteng on Friday announced the biggest tax cuts since 1972. Early on Monday, the pound briefly touched its lowest ever against the dollar; two-year gilt yields soared to their highest since the financial crisis. The market instability is further confirmation of the recklessness of the Truss government’s strategy of funding historic tax cuts and energy subsidies through debt, backed only by a promise of improved growth.
/jlne.ws/3BRG0HM

When Bad Things Happen to Good Stocks; Investing in quality stocks seems like a smart move—but the bet on the blue chips hasn’t paid off lately
Jason Zweig – The Wall Street Journal
In this year’s market bloodbath, you might think funds with “quality” in their name—and in their holdings—would lose less money. You’d be wrong. Quality funds, in Wall Street lingo, tend to own companies that are highly profitable, with steady earnings growth and low debt. In principle, such stocks as Home Depot Inc., Microsoft Corp. and 3M Co. are among the bluest of the blue chips. In practice, many funds holding them are in the red.
/jlne.ws/3Rh1XFY

Environmental, Social and Corporate Governance

Apex Group Supports Clients’ EU Taxonomy Alignment
Mondo Visione
Apex Group Ltd. (“Apex Group” or “The Group”), a global financial services provider, today announces the further growth of its ESG offering with the launch of an EU Taxonomy Solution to ensure clients’ alignment ahead of growing disclosure requirements. The EU Taxonomy is a classification system to identify environmentally sustainable economic activities within companies and portfolios. EU Taxonomy reporting is required for investors seeking alignment with Sustainable Finance Disclosure Regulation (“SFDR”) Article 9 and companies in scope of the EU Non-Financial Reporting Directive.
/jlne.ws/3fkQ6ta

Banks join forces to cut carbon in steel industry; Citi joins with European banks to improve carbon disclosure related to steel production
Banking Exchange
Six banks, including Citi, Société Generale and Standard Chartered, have joined forces on an agreement aimed at improving carbon emissions disclosures related to lending to steel producers. Along with ING, Credit Agricole and UniCredit, the banks have signed the Sustainable Steel Principles, the first agreement of its kind aimed at lenders to the steel industry. The initiative has been facilitated by RMI, a non-profit organization focused on reforming the global energy sector.
/jlne.ws/3Sdr5P8

Ethos ESG, a Minneapolis startup, acquired by NYC firm; The Twin Cities founder will continue to lead company, which offers an investment tool that assesses the environmental, social and governance actions of large corporations.
Nick Williams – Minneapolis Star Tribune
ACA Group, a New York-based financial services firm, has acquired Minneapolis-based Ethos ESG to bolster its presence in the growing market for data about environmental, social and governance actions being taken by public and private companies. That data is used by financial advisers and financial firms to better strategize investment activities. Luke Wilcox created Ethos in 2019 to provide investors like himself with information that helps gauge how well their portfolio affects social issues that matter to them. Under ACA Group’s ownership, Wilcox will remain in Minneapolis as head of Ethos.
/jlne.ws/3dSmDq1

Institutions

Goldman and BlackRock Sour on Stocks as Recession Risk Rises
Abhishek Vishnoi – Bloomberg
Goldman Sachs Group Inc. and BlackRock Inc. are turning more bearish on equities for the short term, warning that markets are yet to price in the risk of a global recession. Flagging rising real yields as a major headwind, Goldman strategists cut equities to underweight in the US investment bank’s global allocation over the next three months while staying overweight cash. BlackRock is advising investors to “shun most stocks,” adding that it is tactically underweight developed-market shares and prefers credit in the short term.
/jlne.ws/3xUqgm4

London-Based Asset Manager Fasanara Capital Establishes $350M Crypto VC Fund
Oliver Knight – CoinDesk
London-based asset manager Fasanara Capital has established a new $350 million venture capitalist fund focused on fintech and Web3, according to a press release. The firm has more than $3.5 billion assets under management and also has a team dedicated to digital assets arbitrage trading and lending.
/jlne.ws/3LPvhm0

BlackRock Takes Aim at Growing CLO ETF Assets Amid Bond Upheaval; The BlackRock AAA CLO ETF would track top-rated US securities; Filing suggests big BlackRock client demand: BI’s Balchunas
Katherine Greifeld – Bloomberg
The world’s largest exchange-traded fund issuer is throwing its weight into a growing corner of the fixed-income industry. The BlackRock AAA CLO ETF would invest at least 80% of its assets in top-rated US collateralized loan obligations, according to a Friday filing with the Securities and Exchange Commission. Fees and a ticker are not yet listed.
/jlne.ws/3RfphUE

Crispin Odey and other hedge fund managers profit from sterling tumble; Computer-driven traders have also gained from strong selling in UK currency
Laurence Fletcher – Financial Times
Hedge fund managers including Crispin Odey are among those profiting from steep falls in sterling and UK government bonds as investors take flight on fears over the sustainability of the country’s public finances. The founder of Odey Asset Management is one of several leading hedge fund managers who believe the pound could now fall to parity against the dollar or below. Both his group and other trend-following hedge funds have been running short positions — bets on falling prices — against the pound and longer-dated gilts for some time.
/jlne.ws/3LLw9aW

Sympathy for the Dimon; He’s dealing with an important shortage: balance sheet
Steven Kelly – Financial Times
It’s always fun when Jamie Dimon is trending. He’s one of few people in business who effectively have tenure. Remember when he said JPMorgan would outlive the Chinese Communist party? It was top-notch entertainment from the person who — love or hate him — is the quintessential banker of our time.
/jlne.ws/3CdYBiI

Goldman Sachs begins layoffs, targeting mid-level bankers: report
Lydia Moynihan – NY Post
Goldman Sachs has begun laying off workers across the US — and the Wall Street giant is focused on culling mid-level investment bankers amid a downturn in dealmaking as the economy slows, according to a report. Last week, Goldman laid off nearly a dozen bankers in the prestigious technology, media and telecommunications division alone, according to an Insider report. Consumer retail, health care and industrials divisions have also been hit by layoffs, the report adds. While bankers at every level have been affected, senior associates and vice presidents have borne the brunt of the culling since they’re advanced enough to cost the company money but typically aren’t rainmakers like partners at the firm, the report notes.
/jlne.ws/3LNym63

Wellness Exchange

Rising Covid-19 cases in the UK may be a warning for the US
Brenda Goodman, CNN
There are signs that the United Kingdom could be heading into a fall Covid-19 wave, and experts say the United States may not be far behind. A recent increase in Covid-19 cases in England doesn’t seem to be driven by a new coronavirus variant, at least for now, although several are gaining strength in the US and across the pond.
/jlne.ws/3fbY8Ez

Health and Wellness Food Market Size & Shares by 2028 | Revenue, Cost Analysis, Gross Margins, Future Investment | Segmentation by Types, Applications | Key Players, Market Dynamics
Globe Newswire
Health and Wellness Food market report analyses top opportunities in the market and summarize the features that are and will drive the progress of the industry. Reports also focus on earlier growing patterns, growth drivers, and present and upcoming trends, and estimate the overall development of the global Health and Wellness Food market during 2022-2028. The global health and wellness market is often cited as the “next trillion dollar industry” and rightly, so, considering the wealth of applications and products it incorporates in a variety of industries such as nutraceuticals and cosmeceuticals.
/jlne.ws/3xSzH5C

Long COVID Has Forced a Reckoning for One of Medicine’s Most Neglected Diseases; Only a couple dozen doctors specialize in chronic fatigue syndrome (ME/CFS). Now their knowledge could be crucial to treating millions more patients.
Ed Yong – The Atlantic
Kira Stoops lives in Bozeman, Montana—a beautiful mountain town where it sometimes feels like everyone regularly goes on 50-mile runs. Stoops, however, can’t walk around her own block on most days. To stand for more than a few minutes, she needs a wheeled walker. She reacts so badly to most foods that her diet consists of just 12 ingredients. Her “brain fog” usually lifts for a mere two hours in the morning, during which she can sometimes work or, more rarely, see friends. Stoops has myalgic encephalomyelitis, or chronic fatigue syndrome (ME/CFS). “I’m considered a moderate patient on the mild side,” she told me.
/jlne.ws/3UKZSow

Where Are All Our Post-Covid Patients?
Daniela J. Lamas, Opinion – The New York Times
Dr. Lamas, a contributing Opinion writer, is a pulmonary and critical-care physician at Brigham and Women’s Hospital in Boston. Two years ago, during the worst of the Covid pandemic, my colleagues and I told ourselves what now seems like a naïve story. In the wake of this virus, we would develop a robust system of follow-up care for the patients who had been sickest in our hospital, many of whom were from medically underserved communities. We knew that survivors of severe illness and lengthy hospitalization were likely to be affected by the unintended legacy of critical care, termed “post-intensive care syndrome” — anxiety, depression, post-traumatic stress and cognitive dysfunction. To say nothing of the scarred lungs and profound weakness that could come from weeks on a ventilator.
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Five things about covid we still don’t understand at our peril; Unlocking these secrets might arm us with strategies to protect ourselves and stop the next pandemic
Mark Johnson – The Washington Post
Since a new coronavirus launched the global pandemic that has now killed more than 6.5 million people — 16 percent of them in the United States alone — scientists in record numbers have devoted themselves full time to unraveling its mysteries. In less than three years, researchers have published more than 200,000 studies about the virus and covid-19. That is four times the number of scientific papers written on influenza in the past century and more than 10 times the number written on measles. Still, the virus has kept many of its secrets, from how it mutates so rapidly to why it kills some while leaving others largely unscathed — mysteries that if solved might arm the world’s scientists with new strategies to curb its spread and guard against the next pandemic.
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Regions

Singapore’s Sovereign Fund Helps Create Thailand’s Latest Unicorn
Anuchit Nguyen – Bloomberg
Thai food and parcel delivery app Line Man Wongnai raised $265 million in a round led by Singaporean sovereign fund GIC Pte, becoming the nation’s latest startup unicorn. The company’s value topped $1 billion after a Series B round of funding, according to a statement on its website. Other investors in the latest funding include Taiwan Mobile Co., BRV Capital Management and PTT Oil & Retail Business Pcl.
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Debt Defaults Are a Stress Test for China’s Soft Power Strategy; The biggest sovereign lender to the developing world is finding itself at the negotiating table as countries like Zambia struggle to pay what they owe.
Tom Hancock and Matthew Hill – Bloomberg
After watching the four giant turbines churn water from the Kafue River, Zambia’s president, Hakainde Hichilema, delivered a message that might have come as a surprise on a tour of a dam project so integral to the future of his country’s economy. Speaking in front of China’s ambassador to Zambia, Hichilema thanked Beijing for its assistance with the hydropower plant, which could turn the African nation into a regional electricity exporter. Then he very publicly questioned the $2 billion cost in front of the man whose country had bankrolled it with loans Zambia was trying to renegotiate.
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Saudi Wealth Fund Mandates Banks for Debut Dollar Green Bond; PIF working with banks including BNPP, Citigroup and JPMorgan; Investor calls for the multi-part deal start on Tuesday
Archana Narayanan and Priscila Azevedo Rocha – Bloomberg
Saudi Arabia’s sovereign wealth fund has mandated banks for a dollar green bond sale, according to people with knowledge of the matter, as the kingdom seeks to reshape its reputation on environmental issues.
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Miscellaneous

Remote Work Drove Over 60% of House-Price Surge, Fed Study Finds
Catarina Saraiva – Bloomberg
The shift to working from home drove more than half of the increase in house and rent prices during the pandemic and will likely drive up costs and inflation going forward as the shift becomes permanent, according to research from the Federal Reserve Bank of San Francisco.
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The Spread

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