China’s Inexorable Rise to Superpower Is History Repeating Itself

Oct 27, 2020

First Read

$9,241/$300,000 (3.1%)
Monica Mulvihill


Hits & Takes
JLN Staff

The women of WILD are holding an online auction and spooky trivia event to support their “Next Generation Women in Finance Scholarship FUNraiser.” The auction started on October 16 and culminates the night of the spooky tribal night, on October 28. The group notes 100% of the proceeds go to the Next Generation Women in Finance Scholarship. The trivia teams will be randomly formed. The auction URL is HERE. Trivia night, where costumes are recommended, will be held from 6 p.m. to 7 p.m. CT on October 28.

The Hedge Fund Association is holding a webinar on the LIBOR transition on Thursday, November 5 at 12:00 p.m. to 1:00 p.m. ET. The speakers will address questions including: What project approaches are others adopting? Where are exposures being identified and which products are being used to replace LIBOR? What are the pain points others are seeing? And how is everyone reviewing the mountains of legal contracts they need to get through?? Register for the webinar HERE.

The Federation of Euro-Asian Stock Exchanges, in cooperation with the CCP12, a global association of CCPs, organized a special workshop for FEAS Members and FEAS Friends, on October 20, 2020. The workshop looked at “How to Start a CCP Business.”

Drawbridge Lending Digital is holding a webinar on October 28 at 1 p.m. CT with an outstanding group of speakers to talk about CFTC Guidance for FCMs holding client virtual currencies. The webinar will be led by DBL’s Matt Lisle, the chair of the Global Digital Asset & Cryptocurrency Association (Global DCA). Featured speakers are U.S. CFTC Commissioner Brian Quintenz; Galaxy Digital President Chris Ferraro; Bakkt Head of Institutional Markets Laura Edelman; Phillip Capital VP David Klotz; and ED&F Man Capital Chief Risk Officer Stephen Hood. You can register HERE.

FT Partners Research announced the publication of their 115-page Q3 2020 FinTech Insights, which provides a comprehensive review of global FinTech deal activity with analysis across private company financings, IPOs and M&A statistics.

Thank you to Monica Mulvihill of Marex for her donation to the JLN MarketsWiki Education GoFundMe campaign. Monica is a savvy industry veteran who also happened to be in my graduation class from Glenbrook South High School in Glenview, Illinois.. Thank you to Monica and all who have given and those who are yet to give. Support our efforts to preserve industry history by donating to our GoFundMe campaign.

We have added to the remembrances reflections page on The additions come from Jeremy Grant, Ed Tilly, Jim Kharouf, Ryan T. McNally, Tom Scanlan and Kelly Brown. If you would like to share a remembrance, please email me at

Over the weekend my weight loss reached 31 pounds. When I shared my dieting discipline before, Tom Ascher reached out to me to share something he likes to have for a healthy breakfast. He is a customer of a small dairy operation in Vermont called Gammelgården Creamery. They offer a yogurt competitor called skyr. I liked what Tom sent me so much, I ordered more for myself. You can check out Gammelgården Creamery online HERE. Thank you Tom for the recommendation!

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


Nasdaq is hosting a panel discussion and fireside chat on “The Economics of the 2020 Election” on Thursday, October 29, from 11:30 a.m. to 1:20 p.m. ET. The panel, hosted by CNBC’s Guy Adami, will include Jim O’Sullivan, chief U.S. macro strategist at TD Securities, and Phil Mackintosh, chief economist at Nasdaq. A fireside chat with Nasdaq CEO and President Adena Friedman is at 12:40 p.m. ET. You can register HERE.~SC


Covid-19 herd immunity theory dealt blow by UK research; Testing of more than 350,000 people shows that antibodies fade within few months
Anna Gross – FT
The proportion of people in Britain with antibodies that protect against Covid-19 declined over the summer, according to research that adds to evidence that natural immunity can wane in a matter of months. The number of people with antibodies fell by a quarter, from 6 percent of the population in June to 4.4 per cent in September, according to a study of hundreds of thousands of people, one of the largest of its kind to date.

*****So much for that theory.~JJL


Loeffler and Sprecher’s $31 million year; Senator outspends all 20 opponents combined
Patricia Murphy, The Atlanta Journal-Constitution
When Kelly Loeffler was appointed to the U.S. Senate in December of 2019, the wealthy financial services executive made it known she was prepared to spend at least $20 million of her own money to win election in 2020.

*****Sen. Loeffler said she was going to spend $20 million of her own money, she (with her husband ICE CEO Jeff Sprecher) has loaned $23 million to the campaign and given another $8.5 to strategic allies.~JJL


Investor Bill Gross accused of blaring ‘Gilligan’s Island’ song on loop to torment neighbor
Laurence Darmiento – LA Times
A dispute between bond king Bill Gross and his next-door neighbor over a $1-million outdoor sculpture has devolved into police calls to their Laguna Beach mansions, multiple legal actions — and allegations that the billionaire investor blared the “Gilligan’s Island” theme song on a loop at all hours to annoy his neighbor.

*****Not the music I would choose to annoy a neighbor. That is what “It’s a Small World” is for.~JJL


What’s been driving US equities? insights from FTSE Russell, CME Group & iShares
FTSE Russell
FTSE Russell recently hosted market, derivatives and ETF experts from FTSE Russell, CME Group and iShares in a special webinar focused on US equity market outperformance in 2020 and the drivers behind the underlying differences in performance between US small- and large-cap stocks. In the webinar for clients and the news media, moderated by FTSE Russell director of product management Catherine Yoshimoto, the group shared perspective on the key drivers behind 2020 performance for the Russell 1000 and Russell 2000 Indexes, investor use of US equity index-based ETF and derivative tools to address opportunities and manage downside risk.

*****Here is a recap of the FTSE Russell panel from last week.~JJL


Pandemic Fatigue Is Real—And It’s Spreading; Collective exhaustion with coronavirus restrictions has emerged as a formidable adversary for governments
Stacy Meichtry, Joanna Sugden and Andrew Barnett – WSJ
From the corridors of Washington to the cobblestones of Paris, the coronavirus is roaring back and authorities are ramping up restrictions again. This time around, however, everyone is tired. Hospital staff world-wide are demoralized after seven months of virus-fighting triage. The wartime rhetoric that world leaders initially used to rally support is gone. Family members who willingly sealed themselves off during spring lockdowns are suddenly finding it hard to resist the urge to reunite.

******Take a deep breath. Find a way to find the energy to keep on keeping on.~JJL


Monday’s Top Three
Our most-read story yesterday was people sharing their memories of Peter Wind. He will be missed. You can read them at John Lothian News Peter Wind Remembrances and if you have any memories of your own to share please email and we will add them there. Second was Crain’s Chicago Business Regional resiliency discussing what Chicago, as a city, needs to do to thrive after the pandemic. Our third most-read story was the sad news from John Lothian News, Peter Wind, Longtime Industry Colleague and Mentor, Passes Away


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Lead Stories

China’s Inexorable Rise to Superpower Is History Repeating Itself; The country looks like a latecomer to Americans and other Westerners—but from its own perspective, this is a restoration.
Michael Schuman – Bloomberg
No foreign policy issue will plague the winner of the White House more than China. There’s already a debate raging among China watchers over what Washington’s next steps should be. Some favor a “reset” to tamp down tensions and return to more constructive diplomacy. Others are fearful of that very reset and argue the U.S. mustn’t stray from the hard line.

CME rolls out BrokerTec dealer-to-client RFQ platform to US repo market; The BrokerTec Quote platform was first launched by CME for European repo, European sovereign debt, and UK gilts in June last year.
Annabel Smith – The Trade
CME Group’s fixed income business BrokerTec has rolled out its dealer-to-client request for quote (RFQ) trading platform for the US repo market. BrokerTec Quote was first launched for the repo market in Europe in June last year, providing trading in European sovereign debt, UK gilts, supranational, and agencies.

Charles Schwab plans to lay off 1,000 employees following TD Ameritrade merger
Jazmin Goodwin, CNN Business
Charles Schwab said Monday that it is laying off 1,000 employees just weeks after completing its acquisition of TD Ameritrade. The job cuts are part of efforts to “reduce overlapping or redundant roles” across both firms, the company said.

Philippines’ faltering stock market throws open the doors; Manila exchange to relax start-up listing rules to catch up with neighbours
Cliff Venzon – FT
Converge ICT Solutions raised 29bn pesos ($600m) on the Philippine Stock Exchange on Monday in the country’s second largest initial public offering, marking a welcome exception for one of Asia’s most underperforming stock markets. The offer size — the biggest in the country since 2013 — is rare and the company’s fibre internet service business, which has boomed during the pandemic, is a breath of fresh air for a bourse dominated by old economy companies.

Beijing and Wall Street deepen ties despite geopolitical rivalry China and US finance defy Donald Trump’s trade and tech war with growing investments
Tom Mitchell and Thomas Hale and Hudson Lockett – FT
A day after US president Donald Trump announced a new initiative to thwart Beijing’s alleged efforts to “steal” US technology, senior Chinese financial officials and Wall Street bankers sat down for a teleconference.

Global Banks in Hong Kong Breathe Easier Over U.S. Sanctions; Banks appear to face less of a challenge than feared in the face of sanctions targeting those seen as undermining Hong Kong’s autonomy
Frances Yoon and Jing Yang – WSJ
U.S. sanctions over Hong Kong are likely to pose fewer headaches for international banks operating in the financial hub than first feared, lawyers say. Banks have been on notice since July, when President Trump signed a law targeting people the U.S. sees as undermining Hong Kong’s autonomy, and those handling their finances. In a worst-case scenario, firms could effectively be cut off from the American financial system. The U.S. action followed Beijing’s imposition of a tough new national security law in Hong Kong.

Global gosbankification risk is now at orange; Beware of Chinese central bankers bearing frictionless and cheap CBDC payment gifts.
Izabella Kaminska – FT
“If it’s free, you’re the product” has become the adage of our digital times. There is, as we are learning, always some iota of risk in giving something of yourself away for free. In the best-case scenario, your data will be harvested in line with your personal sharing preferences and used to advertise products and content to you that you actually want and benefit from. That’s positive sum progress.

The US shale industry’s top priority: win back Wall Street; A series of mergers shows how the industry is trying to demonstrate discipline after the boom
Derek Brower and Myles McCormick – FT
In a White House race defined by the pandemic, the future of the US energy industry made a rare intrusion at the final presidential debate. Democratic challenger Joe Biden’s suggestion that he would “transition away from the oil industry” was seized upon by President Donald Trump, who warned massive job losses would follow.

Inside Ant, the Company Behind the World’s Biggest IPO; Chinese fintech giant, the world’s most valuable start-up, is about to make history with record-breaking IPOs in Hong Kong and Shanghai
Yasufumi Saito, Jing Yang and Stella Yifan Xie – WSJ
Ant Group Co.’s initial public offering is poised to break global records for total funds raised. The company became the world’s most valuable start-up after a fundraising round in mid-2018 that valued it at $150 billion, and could raise more than $34 billion with its coming listings and earn a valuation well in excess of $300 billion. That would place it among the world’s most valuable technology companies.

Exclusive: China asks banks to suspend counter-cyclical factor in yuan fixing – sources
Reuters Staff
China’s central bank has neutralized the counter-cyclical factor in its daily yuan midpoint fixing, two sources with direct knowledge of the matter told Reuters, in a move to let the fixing more closely reflect actual currency market moves.

How does one of the world’s biggest pork firms go bust during a boom? A giant US player is quitting despite huge export hikes during the pandemic – the reasons why get to the heart of the industry
Sarah Mock – The Guardian
How does one of the largest pork companies in the US go out of business at the height of a crazy global pork boom? And what does this tell us about pig farming today? The answer to that question starts where most of the world’s pigs end up, in China.

CloudMargin and Finastra to build collateral solution
Wendy Lisney – FOW
London-based fintech CloudMargin has teamed up with tech firm Finastra to deliver a new collateral and margin management solution, which it says meets a need for cloud-based services that has been accelerated by Covid-19. “The shift away from in-house builds and less agile solutions toward commoditised processes has already hit its inflection point and been accelerated by the Covid-19 crisis,” Stuart Connolly (pictured) told Global Investor on Thursday.


How Trump and Bolsonaro Broke Latin America’s Covid-19 Defenses; The two presidents drove out 10,000 Cuban doctors and nurses. They defunded the region’s leading health agency. They wrongly pushed hydroxychloroquine as a cure.
David D. Kirkpatrick and José María León Cabrera – New York Times
The coronavirus was gathering lethal speed when President Trump met his Brazilian counterpart, Jair Bolsonaro, on March 7 for dinner at Mar-a-Lago. Mr. Bolsonaro had canceled trips that week to Italy, Poland and Hungary, and Brazil’s health minister had urged him to stay away from Florida, too.

Countries Try Shorter Covid-19 Quarantines in Bid to Boost Compliance; Advocates say reducing the isolation period could help combat pandemic fatigue; others warn the gamble could backfire
Jason Douglas and Brianna Abbott – WSJ
A growing number of countries are trimming the length of time people potentially exposed to the coronavirus need to self-quarantine to reduce the risk of spreading Covid-19. Their reasoning: Shorter spells might help manage the pandemic by encouraging greater compliance.

US experts urge caution on giving Covid vaccine to children; More research needed to understand younger people’s milder reaction to coronavirus
Hannah Kuchler – FT
Children should not be given a Covid-19 vaccine until there is more data to ensure it is safe, experts have warned the US regulator, as the first group of American teenagers were dosed with a potential treatment for the disease.

All-In Push for Vaccine in U.S. Raises Risk Virus Will Linger
Naomi Kresge, James Paton, and John Lauerman – Bloomberg
Shots no magic wand, health officials say as infections rise; Masks, social distancing, new therapies still seen as needed
The U.S. strategy to rely on vaccines and treatments, rather than emphasizing social distancing, masks and testing nationwide, threatens to delay the return to normal life for Americans.

Let’s Not Fool Ourselves About Covid and Schoolkids; There are no easy choices when it comes to bringing students back to the classroom.
Ferdinando Giugliano – Bloomberg
What to do about schools is perhaps the biggest dilemma facing policy makers right now. Closing them could lead to a “lost generation” of learners and make it harder for parents to get back to work. Keeping them open could further propagate the virus. Should governments choose the latter, they will need other ways to mitigate the impact on health.

A Chinese Vaccine Could Save American Lives; The biggest cost of the U.S.-China trade war is the lack of cooperation against Covid-19.
Tyler Cowen – Bloomberg
Critics of President Donald Trump’s trade war with China stress that it has led to higher consumer prices, costly bailouts for American farmers and mutual hard feelings. All these points are right as far as they go, but they don’t go far enough. The biggest cost of the trade war — measured in lives lost, lingering business uncertainty and a longer economic downturn — is the lack of cooperation between the U.S. and China on vaccines and other biomedical advances.

Hong Kong Drafts Law to Make Covid Tests Mandatory for Some
Iain Marlow, Natalie Lung, and Felix Tam – Bloomberg
Move comes as city further relaxes anti-virus measures; Chief Executive Carrie Lam sees rising disapproval rating
Hong Kong is drafting a law that would make Covid-19 tests mandatory for people with symptoms and other specific groups, Chief Executive Carrie Lam said, as the city continued to slowly ease virus-related restrictions.

Germany Looks to Tighten Rules While Russia Balks: Virus Update
Bloomberg News
Germany is looking at closing restaurants and prohibiting large events as infections continue to surge across Europe. Italy, the continent’s original epicenter of the pandemic, is coming up with more aid for businesses hardest hit by restrictions as cases rise at a record pace.

Trump Pins Hopes on Rallies That Could Be Sealing His Defeat
Josh Wingrove – Bloomberg
Campaign says rallies identify new voters and excite the base; Pollsters see no evidence they helped then or are helping now
President Donald Trump’s push for a second poll-defying victory is relying on a hallmark of his first — raucous campaign rallies that Trump sees as a crucial sign of voter enthusiasm but that pollsters say may only be cementing his defeat.

NIH Halts Study Exploring Treating Covid-19 With Lilly Antibody, Remdesivir; The study, paused due to a safety concern, won’t resume because the combination drug treatment didn’t show any signs of benefit
Peter Loftus – WSJ
Federal health researchers have halted testing a combination of Eli Lilly LLY -0.48% & Co.’s Covid-19 antibody drug and remdesivir in hospitalized Covid-19 patients, after an independent committee found a lack of a benefit.

Minnesota reports 3 Covid-19 outbreaks related to Trump campaign events in Septemberlan
Nadia Kounang – CNN
Minnesota is reporting three Covid-19 outbreaks related to Trump campaign events held in September. At least 23 cases have been traced to outbreaks occurring at rally events in Bemidji on Sept. 18, a speech held by Vice President Mike Pence on Sept. 24 in Minneapolis, and another rally held by the President on Sept. 30 in Duluth, the Minnesota Department of Health said in an email to CNN.

Nurses Are at High Risk for Covid Among Health Workers, C.D.C. Says; A new study looked at the high numbers of health care workers hospitalized during the early months of the pandemic.
Reed Abelson – NY Times
Among health care workers, nurses in particular have been at significant risk of contracting Covid-19, according to a new analysis of hospitalized patients by the Centers for Disease Control and Prevention.

Exchanges, OTC and Clearing

BrokerTec Announces Launch of Dealer-to-Client Execution Platform for U.S. Repo Markets
CME Group
BrokerTec, a leading provider of electronic trading platforms and technology services in fixed income markets, today announced its dealer-to-client request for quote (RFQ) trading platform, BrokerTec Quote, is now available to the U.S. repo market through BrokerTec Americas, LLC. The addition of U.S. treasury repo to the BrokerTec Quote platform follows its successful launch for European repo, European sovereign debt and UK gilts repo market users in June 2019.

CME Group Announces Dec. 7 Launch of Nasdaq Veles California Water Index Futures
CME Group
CME Group, the world’s leading and most diverse derivatives marketplace, and Nasdaq, a global technology company serving the capital markets and other industries, today announced futures on the Nasdaq Veles California Water Index (NQH20) will be available for trading Dec. 7, pending regulatory review.

“Viewfinder – Photography and Film in Dialogue” – Deutsche Börse Photography Foundation and DFF – Deutsches Filminstitut & Filmmuseum Frankfurt show the exhibition and film series “Through the eyes of Magnum”
Deutsche Börse Group
Works from the Art Collection Deutsche Börse can be seen from November 3, 2020 – January 3, 2021 at DFF; The film series in the cinema of the DFF is dedicated to the gaze of the renowned agency Magnum Photos, Inc.
The connection between Magnum photographers and film is almost as old as the Magnum Photos, Inc. agency itself. They have not only accompanied countless shootings on the set, but have also incorporated and sometimes even shaped the visual language of the cinema in their work. As part of their cooperation “Viewfinder – Photography and Film in Dialogue,” the Deutsche Börse Photography Foundation and the DFF – German Film Institute & Film Museum are dedicated to this exciting constellation. On November 3, they will show a new series of films and an exhibition with works from the Art Collection Deutsche Börse, including works by Philipp Jones Griffiths, Harry Gruyaert, Thomas Hoepker and Alec, on the premises of the DFF under the title “Through the Eyes of Magnum” Soth.

Successful start for our new Options on Euro-Buxl® Futures
Just four weeks on the market and our new Buxl options are already impressing with positive figures: more than 19,000 contracts traded in the first four weeks and a strong liquidity picture in the order book with seven market makers providing prices.

Icelandic Salmon admitted to trading
The seafood company Icelandic Salmon has today been admitted to trading on Merkur Market (ticker code: ISLAX-ME). Icelandic Salmon is the largest salmon farmer in Iceland. Recently, Ocean Sun raised NOK 647 million through a private placement, consisting of NOK 500 million in new shares and NOK 147 million through sale of existing shares. The placement attracted strong interest from high-quality institutional investors and was substantially oversubscribed, reported Icelandic Salmon.

Deutsche Börse 360T launches spot FX order book and aggregator; The HyperSonic order book from 360T increases the range of spot FX liquidity that traders can interact with through one single point of entry.
Annabel Smith – The Trade
Deutsche Börse’s FX trading platform 360T is looking to aggregate fragmented spot FX liquidity pools with the launch of a new order book for its disclosed and undisclosed markets. Named HyperSonic, 360T said the order book and low latency aggregator expands the range of spot FX liquidity that traders can interact with via one single point of entry with faster matching technology.

ICE Data Services and RepRisk to Increase Access to ESG Risk Data
Intercontinental Exchange
Intercontinental Exchange (NYSE: ICE), a leading operator of global exchanges and clearing houses and provider of mortgage technology, data and listing services, today announced that ICE Data Services is integrating ESG risk data from RepRisk into its ESG Reference Data service.

Notice of Disciplinary Action
CME Group
NON-MEMBER: Peter Ormandi
NYMEX RULE VIOLATIONS: Rule 432 General Offenses (in part)
It shall be an offense:B.1. To engage, or attempt to engage, in fraud or bad faith; B.2. To engage in conduct or proceedings inconsistent with just and equitable principles of trade; G. To pre-arrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts; L.1. To fail to appear before the Board, Exchange staff or any investigative or hearing committee at a duly convened hearing, scheduled staff interview or in connection with any investigation.
PENALTY: Based on the record and the Panel’s findings and conclusions, the Panel ordered Ormandi to pay a fine in the amount of $75,000, to pay restitution in the amount of $32,500, jointly and severally with Laszlo Polszter and Laszlo Balogh, and permanently barred his access to any trading floor owned or controlled by CME Group and from direct and indirect access to any designated contract market, derivatives clearing organization or swap execution facility owned or controlled by CME Group.

Notice of Disciplinary Action
CME Group
NON-MEMBER: Laszlo Balogh
NYMEX RULE VIOLATIONS: Rule 432 General Offenses (in part)
It shall be an offense: B.1. To engage, or attempt to engage, in fraud or bad faith; B.2. To engage in conduct or proceedings inconsistent with just and equitable principles of trade; G. To pre-arrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts; L.1. To fail to appear before the Board, Exchange staff or any investigative or hearing committee at a duly convened hearing, scheduled staff interview or in connection with any investigation.
PENALTY: Based on the record and the Panel’s findings and conclusions, the Panel ordered Balogh to pay a fine in the amount of $75,000, to pay restitution in the amount of $32,500, jointly and severally with Laszlo Polszter and Peter Ormandi, and permanently barred his access to any trading floor owned or controlled by CME Group and from direct and indirect access to any designated contract market, derivatives clearing organization or swap execution facility owned or controlled by CME Group.

Notice of Disciplinary Action
CME Group
RULE VIOLATION: Rule 576. Identification Of Globex Terminal Operators
Each Globex terminal operator shall be identified to the Exchange, in the manner prescribed by the Exchange, and shall be subject to Exchange rules. If user IDs are required to be registered with the Exchange, it is the duty of the clearing member to ensure that registration is current and accurate at all times. Each individual must use a unique user ID to access Globex. In no event may a person enter an order or permit the entry of an order by an individual using a user ID other than the individual’s own unique user ID.
PENALTY: On October 7, 2020, pursuant to Rule 512 (“Reporting Infractions”), INTL FC Stone Financial Inc. was issued a $5,000 fine for its violation of Rule 576.

Transition of Stock, ETF, and Corporate Bond Eligibility Lists to CME DataMine
CME Group
CME Clearing (CME) accepts select stocks, ETFs, and corporate bonds from clearing members to meet performance bond requirements. Currently, the lists of acceptable securities (“eligibility lists”) are available to external users on the CME Group website using a registered CME Group Login.

Exchange for Related Positions
CME Group
Effective on trade date Monday, November 9, 2020, and pending all relevant CFTC regulatory review periods, this Market Regulation Advisory Notice will supersede CME Group Market Regulation Advisory Notice RA1911-5 from December 17, 2019. It is being issued to add new FAQ 28 concerning “true-up EFPs” and to update FAQ 21 to codify that EFRPs must be uniquely identified on account statements and other records of the transaction made pursuant to the requirements of Exchange Rule 536 and CFTC Regulation 1.38.

Pre-Execution Communications
CME Group
Effective on trade date November 9, 2020, and pending all relevant CFTC regulatory review periods, this Market Regulation Advisory Notice will supersede CME Group Market Regulation Advisory Notice RA2005-5 from July 13, 2020. It is being issued based on changes to the crossing protocol applicable to all CME and CBOT agricultural futures and options with the exception of CME Dairy futures and options.

Bursa Malaysia’s Q3 net profit more than doubles up to RM121.93m
Bursa Malaysia Bhd’s net profit more than doubled to RM121.93 million for the third quarter ended September 30, 2020 compared with RM47.10 million in the same quarter last year amid improved performance on the securities and derivatives market. Revenue stood at RM237.74 million versus RM122.67 million previously.


Allianz Global Investors joins bond data pooling network Glimpse Markets; Glimpse Markets has signed up three asset managers including Allianz Global Investors and Groupama Asset Management as the platform prepares to launch.
Hayley McDowell – The Trade
Allianz Global Investors has become the third asset manager to join the data pooling network for corporate bonds, Glimpse Markets, as the start-up readies its launch.

Buy-side lags behind sell-side in adoption of machine learning and artificial intelligence; Refinitiv found 44% of sell-side firms had deployed artificial intelligence and machine learning in multiple areas, compared to just 28% of buy-side firms.
Annabel Smith – The Trade
Buy-side firms are falling behind the sell-side in the bid to scale up adoption of artificial intelligence (AI) and machine learning (ML) technologies, according to an in-depth report from Refinitiv. Refinitiv polled 120 asset managers and found 28% had deployed ML and AI in multiple areas, describing it as core to their business while 58% said they had only deployed it in pockets.

UBS Plans to Invest $200 Million in Fintech Startups
Marion Halftermeyer – Bloomberg
Targets primarily equity investments in early-stage fintech; Bank also starts collaboration with Anthemis venture fund
UBS Group AG plans to invest $200 million of its own money in fintech companies over the medium term in a push to further digitize its services and find new ways to engage with clients. The portfolio, called UBS Next, will be run by a dedicated team and take mostly direct stakes in early-stage fintech and other relevant technology companies, the bank said Tuesday from Zurich. As part of the project, UBS started a strategic collaboration with Anthemis, a venture capital firm that will help the Swiss wealth manager source deals.

Frontrunner Itiviti kicks off cloud transformation of its entire trading infrastructure
Itiviti, a leading technology and service provider to financial institutions worldwide, today announced the cloud transformation of its entire electronic trading platform. Itiviti opted for a hybrid private-public cloud strategy to reinforce the modularity and flexibility of the Itiviti platform. To operate the transformation, the company will collaborate with data center experts Data Canopy and technology and supply chain services specialist Ingram Micro, and leverage Amazon Web Services (AWS)


TradeStation Crypto Leverages Zero Hash Lending Settlement Infrastructure to Bring Efficiency and Scalability to the Crypto Lending Market; This strategic relationship allows TradeStation Crypto to streamline and automate loan submission and counterparty management throughout the entire loan lifecycle
TradeStation Crypto, Inc.
TradeStation Crypto, Inc. (TradeStation Crypto), a subsidiary of TradeStation Group, Inc., today announced a strategic relationship with Zero Hash, an API driven financial institution, to manage its digital asset loan book. Through the collaboration, TradeStation Crypto can streamline loan submission and settle digital assets, benefiting from Zero Hash’s automation and real-time valuation feeds. TradeStation Crypto and its loan counterparties can now enjoy greater efficiency throughout the loan lifecycle.

Silvergate Takes $586 Million In Cryptocurrency Deposits
Michael del Castillo – Forbes
Silvergate Bank is reaping rewards for some of the risks it took by being one of the first banks to let bitcoin companies open bank accounts. In an investor call today the La Jolla, California based bank revealed it accepted $586 million in cryptocurrency deposits in Q3 2020, bringing its total cryptocurrency assets to $2.1 billion as of September 30, 2020, compared to $1.5 billion as of June 30, 2020. Not since the record quarter of Q4 2017, when the bank took in $835 million in crypto business, has it reached such heights.

For years J.P. Morgan was skeptical of Bitcoin. Now the bank’s analysts say its value could triple, challenging gold
Jeff John Roberts – Fortune
A team of analysts at J.P. Morgan’s Global Markets Strategy group are touting Bitcoin’s emergence as an alternative to gold among millennials, suggesting a “doubling or tripling” in the price of the cryptocurrency if current trends continue. The prediction, which came in a research note published on Friday, is remarkable given the bank’s onetime skepticism toward Bitcoin, which included CEO Jamie Dimon calling it a “fraud” in 2017 and saying he would fire anyone trading it for being “stupid.”

JPMorgan’s ‘JPM Coin’ Is Live, Exec Says
Daniel Palmer – Coindesk
Investment banking giant JPMorgan is about to see the first commercial transactions with its own cryptocurrency, JPM Coin. According to a report from CNBC Tuesday, Takis Georgakopoulos, JPMorgan global head of wholesale payments, said a major tech firm will use the token to make global payments starting this week. As the bank sees blockchain technology becoming commercially viable, it has also created a new business unit with around 100 employees called Onyx to house related projects, Georgakopoulos told CNBC.

Singapore’s biggest bank DBS is launching a crypto exchange
Yogita Khatri – The Block
DBS, Singapore’s biggest bank, is launching a fiat-to-cryptocurrency exchange, The Block has learned. Dubbed “DBS Digital Exchange,” the trading platform would allow users to trade in four crypto assets — bitcoin (BTC), bitcoin cash (BCH), ether (ETH), and XRP — against Singapore dollar (SGD), Hong Kong dollar (HKD), Japanese yen (JPY) and U.S. dollar (USD).The exchange would also conduct security token offerings (STOs) “in due course” to help small and medium-sized firms raise funds, according to a now-deleted webpage, but The Block can still access the cached version of it.

Benoit Coeure Reveals BIS Plan for CBDC Trial Starting in 2020
Daniel Palmer – Coindesk
How things have changed since spring of 2019, when Agustin Carstens, general manager of the Bank for International Settlements (BIS), was issuing his latest warning over the need for caution when considering central bank digital currencies (CBDC). Now, according to Chinese news source The Paper, the very same institution – dubbed the central bank for central banks – is planning its own trial of a CBDC in collaboration with the Swiss central bank.

Kraken CEO Jesse Powell Issues Tough Critique of ‘Reckless’ DeFi Launches
Sebastian Sinclair – Coindesk
Jesse Powell, chief executive of the U.S.-based cryptocurrency exchange Kraken, has lashed out at the decentralized finance (DeFi) sector in the aftermath of Monday’s $24 million arbitrage exploit of Harvest Finance. In a tweet on Tuesday, Powell said he would “not accept” DeFi projects’ attempts at “externalizing the cost” of “hasty reckless” rollouts. “Stop f**king up your bullshit DeFi scams and expecting exchanges to bail you out,” Powell said. “Invest in audits, insurance and please [do your own research].”

PayPal’s Crypto Offering May Be ‘a Huge Headache’ for Taxpayers
Jaspreet Kalra – Coindesk
PayPal’s decision last week to embrace crypto may help with mainstream adoption, but it could also mean additional tax work for users unfamiliar with the crypto landscape. Over the next few weeks PayPal will be rolling out buy, sell and hold features for cryptocurrencies on its platform to U.S. users, but the service will not allow users to withdraw or deposit holdings. According to Internal Revenue Service rules, cryptocurrencies like bitcoin (BTC) are treated like property; therefore, each time someone buys, sells or exchanges a digital asset it is considered a taxable event wherein the capital gains tax applies.

US Bail Funds Are Seeing an Uptick in Cryptocurrency Donations
Benjamin Powers – Coindesk
For many people arrested, especially low-income citizens, bail funds are their best hope for freedom while they await trial. Now, some of those funds are accepting cryptocurrency donations. Facilitated by crypto payment processor The Giving Block, the Bail Project, the Chicago Community Bond Fund and the Nashville Community Bail Fund, for example, accept cryptocurrency including bitcoin (BTC), ether (ETH) and even basic attention token (BAT). They’ve taken in thousands of dollars in crypto donations since the summer, according to The Giving Block, which could be a sign of larger adoption in the space of bail funds.

Crypto Exchange Huobi Adds Direct Visa, Mastercard Payments
Sebastian Sinclair – Coindesk
Huobi, a Seychelles-based cryptocurrency exchange, is making it simpler to pay for cryptocurrency with Visa and Mastercard. Announced Tuesday in a press release, customers are now able to use their credit or debit cards to make purchases directly on the exchange platform without being redirected to a third-party payments portal. The company said the service is being provided by Huobi Technology, a blockchain subsidiary of Huobi Global regulated in Gibraltar.


Trump Tells Coronavirus, ‘I Surrender’; The president plays the climate-denial playbook on a pandemic.
Paul Krugman – The New York Times
As we head into the final stretch of the election, Covid-19 is on a roll. Coronavirus cases keep hitting records — among other things, five aides to Vice President Mike Pence have tested positive. Hospitalizations, which lag behind cases, are soaring. And deaths, which lag even further behind, are starting to rise, too. Put it this way: Just between now and Election Day, we’re likely to lose almost twice as many Americans to Covid-19 as died on 9/11.

These 10 Billionaires Have Gained The Most Money Since Trump’s 2016 Election; America’s first billionaire president has been great for the nation’s billionaires, especially these top 10 gainers.
Chase Peterson-Withorn – Forbes Staff
Donald Trump’s stint in the White House has been a smashing success for America’s billionaires, who were collectively worth $2.9 trillion the day Trump was elected and are now worth nearly $1 trillion more, thanks to a 60% rise in the U.S. stock market.

Georgia’s legacy of voter suppression is driving historic Black turnout; Changing demographics in the Atlanta suburbs and an explosion of civic engagement among first-time voters could turn the state blue for the first time in decades.
Maya King – Politico
Almost every Black Georgia voter queuing up at the polls has a story about 2018. Most waited for hours in lines that wrapped around their voting locations. Some were removed from the voter rolls arbitrarily, forcing them to fill out confusing provisional ballots on Election Day. Others stayed home altogether and — after watching Democrat Stacey Abrams lose the gubernatorial race by fewer than 60,000 votes — regretted that decision.

Factbox: Wall Street banks and their staff are leaning left
Pete Schroeder – Reuters
Wall Street banks and their employees have been leaning left in recent years, increasing the proportion of cash allocated to Democrats.

Trump Campaign Could Run Out Of Money Before Election Day
Erik Sherman – Forbes
Donald Trump’s re-election campaign is burning cash so fast that it might run out of money before Election Day, a Zenger News analysis of Federal Election Commission data concluded. Joe Biden’s campaign, however, would have enough money to keep going for more than four years.

As Trump warns of economic disaster, Wall Street grows giddy about Biden; Many investors are betting on a Democratic sweep. But some other scenarios could create an unsettling environment for markets.
Ben White – Politico
President Donald Trump loves to say that if Joe Biden wins the White House, stocks will crash, retirement accounts will vanish and an economic depression “the likes of which you’ve never seen” will engulf the nation. But much of Wall Street is already betting on a Biden win — with a much different take on what the results will mean.

How the US election could impact LNG exports; Whether Biden or Trump wins next week, there’s change afoot in the sector
Myles McCormick and Derek Brower – FT
America goes to the polls in seven days’ time in an election that will be pivotal for the future of US energy. The standard narrative has been that Donald Trump is good for fossil fuels, while Joe Biden would hurt the industry as he looks to transition to cleaner energy.

Former Goldman Sachs president Harvey Schwartz makes late big donation to Joe Biden
Brian Schwartz – CNBC
A former president of Goldman Sachs made a late contribution to one of Joe Biden’s joint fundraising committees just three weeks ago.

As Trump says news about COVID should be illegal, WH chief of staff says goal is to ‘defeat’ virus, not ‘control’ it
Dylan Stableford – Yahoo News
While President Trump’s chief of staff on Monday attempted to clarify the assertion that the United States is “not going to control” the coronavirus crisis, the president himself complained that the media is too focused on a pandemic that has killed more than 225,000 Americans and infected more than 8.6 million.


ESMA adds UK venues to opinions on third-country trading venues
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has updated the list of third-country venues (TCTV) in the context of the opinions on post-trade transparency and position limits under MiFID II and MiFIR.

ESMA Updates Statement to Address Credit Ratings From the United Kingdom
Today ESMA, the EU’s securities markets regulator, has published an update to its March 2019 statement on the endorsement of credit ratings from the United Kingdom.

CFTC to Hold an Open Commission Meeting on November 2
Commodity Futures Trading Commission Chairman Heath P. Tarbert today announced the CFTC will hold an open meeting on Monday, November 2, 2020 at 9:30 a.m. (EST). The meeting will be held virtually in accordance with the agency’s implementation of social distancing due to the COVID-19 (coronavirus) pandemic.

SIFMA Comments on the Department of Labor Proposed Rulemaking on Independent Contractor Status
SIFMA submitted a comment letter today on the Department of Labor’s notice of proposed rulemaking to revise its interpretation of independent contractor status under the Fair Labor Standards Act. The proposed rule would replace the existing six-factor “economic realities” test with a similar but streamlined test that ultimately answers whether a worker is in business for themselves or is economically dependent on the employer for work.

Investing and Trading

Foreign Investment Plummets During Pandemic, Except in China; Foreign investment dropped sharply in the U.S. and Europe but barely fell in China in the first half of 2020
Paul Hannon – WSJ
Foreign direct investment in China largely held steady during the first half of this year, even as investment inflows into the U.S. and European Union plummeted, in a fresh sign that the world’s second-largest economy has suffered less damage from the pandemic.

BP returns to profit but warns of volatile outlook; Oil group’s third-quarter earnings beat analysts’ forecasts of a loss
Anjli Raval – FT
BP returned to a profit in the third quarter as crude prices and energy demand recovered, but the oil producer warned that the outlook remained volatile as the pandemic threatens the global economy.

South Africa’s Cities to Switch to Solar as Power Monopoly Ends
Gemma Gatticchi and Monique Vanek – Bloomberg
State decides cities no longer forced to buy Eskom’s power; Cape Town, Johannesburg consider solar plants, landfill gas
South Africa’s biggest cities are preparing to source their own power after the energy ministry this month approved letting them wean themselves off the state utility that’s subjected cities to outages for the past 13 years.

China Seeks Big Money’s Help Reaching Its Carbon-Neutral Goal
Bloomberg News
Five government ministries back climate finance guidelines; Rules could entice investment as China aims for carbon goal
China is enlisting financial institutions and international investors to help fund the country’s drive toward carbon neutrality.

With Big Oil Declining, Carbon Removal Could Take Its Place; A new study shows that revenues in the fledgling industry could soon come to rival those of today’s oil and gas giants.
Akshat Rathi and Todd Gillespie – Bloomberg
Transitioning away from fossil fuels won’t be enough to slow climate change. The world has delayed the task of cutting emissions for so long that we likely will have to also deploy solutions to draw down carbon dioxide from the air.

The Shine Is Coming Off the Boom Stocks of 2020; The third quarter may mark the turning point for companies that benefited most from pandemic tailwinds.
Conor Sen – Bloomberg
As investors think about which stocks to hold going into 2021, there may be no bigger red flag than a huge third-quarter earnings beat. That’s because of what the pandemic has done to consumer behaviors and corporate earnings this year — impacts that may turn out to be more transitory than real-time-obsessed investors may anticipate.

Environmental, Social and Corporate Governance

Japan’s New Climate Pledge Faces a Massive Hurdle
Jess Shankleman and Aaron Clark – Bloomberg
The fossil fuel needs to fall to 4% of its energy mix by 2030; Net zero 2050 target follows China and the European Union
Japan will need to more than quadruple the pace at which it shuts down coal plants and rapidly ramp up renewable energy capacity over the next decade to meet its new climate pledge to zero out emissions by 2050.

Finance houses join the rush toward supporting the energy transition; Asset managers are doing more to challenge companies on global warming but still stand accused of ‘greenwash’
Patrick Temple-West – FT
Earlier this year, State Street, one of the world’s largest asset managers, threw its support behind a shareholder petition urging Japanese bank Mizuho to disclose more information about how it is aligning its investments with the Paris agreement on climate change.

The End of ESG Investing in ERISA Accounts
National Law Review
The United States Department of Labor (“DOL”) is forging ahead with a controversial new proposed rule that would dramatically change the landscape of ESG investing in retirement accounts. The rule, which would make several changes to the Employee Retirement Income Security Act of 1974 (“ERISA”), seeks to make law in an area where DOL’s prior guidance has tended to change with each administration. Critics of the proposal, however, worry about the future of ESG investing following the imposition of DOL’s new rule, which severely limits the ability of ERISA fiduciaries to invest in ESG investments.

ICE Data Services and RepRisk to Increase Access to ESG Risk Data
Yahoo Finance
Intercontinental Exchange (NYSE: ICE), a leading operator of global exchanges and clearing houses and provider of mortgage technology, data and listing services, today announced that ICE Data Services is integrating ESG risk data from RepRisk into its ESG Reference Data service.

Can ESG investing really change the world?
Financial Times (AUDIO)
The pandemic has forced everyone to reexamine their finances, whether it’s dealing with a pay cut, how to best use cash from staying home, managing the ups and downs of investment markets or using this time to make a career change. Whatever the question, Financial Times consumer editor Claer Barrett knows where to find the right tips for your money.

“Green LNG” – A Pathway For Natural Gas In An ESG Future?
In the energy industry, it has long been the conventional wisdom that natural gas will serve as a “bridge fuel” to a low-carbon future. Industry participants and some policymakers have touted the benefits of natural gas as a climate-friendly substitute for more carbon-intensive fuels, such as coal. This wisdom is being challenged, however, as the natural gas industry faces increasing pressure from investors, regulators, and customers to do more to help meet climate change objectives and Environmental, Social, and Governance (ESG) investing and financing goals.


The evolution of the trader; Pictet Asset Management’s global head of fixed income trading, Carl James, takes a look at how traders have evolved since the Big Bang in 1986 and finds the ability to adapt remains as important now as it did then.
Carl James – The Trade
Looking back over the past 35 years, the Big Bang in London (October 1986) was essential in the evolution of trading and the industry as a whole. Broadly speaking, the Big Bang was about moving from fixed rate commissions, which massively opened up competition in the City, accelerating expansion of the industry and adoption of new working practices. The most fundamental change was moving from floor trading to screen-based trading.

American International Group to Divest Life-Insurance Business; Current President Peter Zaffino will run the insurer as CEO starting March 1
Leslie Scism – WSJ
Insurance conglomerate American International Group Inc. AIG -3.46% is taking steps to split off its life-insurance business into a separate company, leaving it to focus on property-casualty insurance, a separation it will make under the direction of a new chief executive.

HSBC considers paying 2020 dividend as profits beat estimates; Bank contemplates ‘conservative’ payout after reporting lower provisions for bad loans
Stephen Morris – FT
HSBC struck a bullish stance after reporting better than expected third-quarter earnings on Tuesday, saying it was considering restarting paying dividends as provisions for bad loans plunged and executives said the worst of coronavirus was behind them.

Banks Working on Ant Group’s Hong Kong IPO Could Get $396 Million Windfall
Julia Fioretti – Bloomberg
The banks working on the Hong Kong leg of Ant Group Co.’s record-breaking initial public offering are looking at a windfall of as much as $396 million, although in percentage terms it is less than the city’s average for big deals.

HSBC CFO Says Shift to Remote Working May Help Deepen Cost Cuts
Alfred Liu, Harry Wilson, and Manus Cranny – Bloomberg
Hybrid model could see staff work from home three days a week; Increasing digital engagement may reduce reliance on branches
HSBC Holdings Plc is counting on the new normal spawned by the pandemic to boost its cost-cutting effort. A shift in customer behavior could reduce the bank’s reliance on its physical branches, while more remote working for some of its staff may reduce office costs, according to Chief Financial Officer Ewen Stevenson.

Apollo Clients Await Inquiry’s Findings on Chief and Jeffrey Epstein; Leon Black, Apollo Global Management’s co-founder and leader, has been facing questions from investors over his ties to the convicted sex offender. One has already opted to withhold new investment.
Matthew Goldstein, Mary Williams Walsh and Matt Phillips – NY Times
Leon Black helped start Apollo Global Management three decades ago out of the ashes of a junk-bond scandal and built a $400 billion private-equity powerhouse, handling the investments of institutions around the globe, from public pension systems in California to sovereign wealth funds controlled by foreign governments.

Goldman Sachs attempted to cover up sexual misconduct, lawsuit claims
Reuters Staff
Goldman Sachs Group Inc attempted to cover up allegations of workplace sexual misconduct by the bank’s global head of litigation, a lawsuit filed on Monday in New York State Supreme Court claimed.


Singapore halts use of flu vaccines after 48 die in South Korea
The Telegraph
Singapore has temporarily halted the use of two influenza vaccines as a precaution after some people who received them in South Korea died, becoming among the first countries to publicly announce a halt of the vaccines’ usage.

What Ails Arab Economies Is Older Than Covid-19; Structural problems predating the pandemic are inflicting disproportionate pain.
Amr Adly – Bloomberg
The International Monetary is predicting the economies in the Arab nations of the Middle East and North Africa will contract by 5.4% in 2020-21 due to the covid-19 pandemic and the collapse in international oil prices. (I’ve left out Lebanon and Libya, because they face exceptional circumstances.) This means the Arab MENA region, despite being among the least affected by the pandemic in terms of confirmed cases and deaths, will suffer disproportionate economic pain.

9-Year-Old Coders Show How India Is Pioneering Online Education; Around the world, the switch to remote learning is feeding demand for programming lessons.
Saritha Rai – Bloomberg
Shivank Patel has been learning to write software code for a year, and he’s already built a handful of apps, including one for donating food to street children. He’s working on a platform to help doctors track preterm babies. Patel, who lives near New Delhi, is 9 years old.


Brexit Deal Put at Risk by Fears of French Fishermen
Rudy Ruitenberg – Bloomberg
Macron has made access to British waters a red line in talks; French threaten to block U.K. fish exports in there’s no deal
In Port-en-Bessin on France’s northern coast, Nicolas Cauvin loads his blue-and-white trawler up with potatoes, milk and baguettes for an eight-day trip out into British waters. Cauvin normally gets about half of his catch from areas that will be out of bounds from Jan. 1 unless the U.K. and the European Union reach a trade deal in the next three weeks.

How to Invest During Brexit? Look Outside the U.K., Fund Managers Say; ETFs that track markets abroad are seen as providing the best protection against the fallout from Britain’s break up with the European Union.
Kristine Aquino and Anchalee Worrachate – Bloomberg
British investors are weeks away from a potentially devastating shock. They may have little to do with fisheries or food standards, but the market they trade from could face headwinds if the U.K. fails to secure a trade deal with the European Union.

EU Commission says both sides engaging ‘intensively’ to reach Brexit deal
Reuters Staff
The European Union and Britain are engaging intensively to clinch a deal on their future relationship, before a transition period ends on Dec. 31, the European Commission said on Tuesday. “Both sides are engaging intensively to reach a deal,” a Commission spokesman told a regular press briefing, without commenting on the ongoing negotiations. The two sides are meeting in London for negotiations until Wednesday, after which the talks will continue in Brussels, the Commission said.

EU Rolls Brexit Tanks Onto U.K. Hedge Fund Lawn; Britain’s fund-management industry remains vulnerable to shifts in the country’s regulatory relationship with the bloc.
Mark Gilbert – Bloomberg
As negotiations about the terms of the U.K.’s departure from the European Union rumble on interminably, it’s pretty clear that the future relationship will be fractious at best. For the asset management industry, the fight around cross-border arrangements for overseeing investments is reigniting, with London’s hedge funds stuck in the crosshairs.


Protests grip Philadelphia, leaving officers injured and stores damaged, after police kill a Black man
Katie Shepherd – Washington Post
Volatile protests erupted Monday night in Philadelphia after police fatally shot a 27-year-old Black man armed with a knife whose family said he was suffering a mental health crisis. The Philadelphia Police Department said two officers fatally shot Walter Wallace Jr. several times Monday afternoon after he refused to drop the knife as his mother followed closely behind, trying to restrain him. But Wallace’s family and local activists pointed to cellphone video of the shooting, asking why officers didn’t use less lethal weapons to try to subdue him. “Why didn’t they use a Taser?” Walter Wallace Sr., his father, asked the Philadelphia Inquirer, noting that his son was on medication. “He has mental issues. Why you have to gun him down?”

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