Crypto-based ‘shadow financial market’ spooks regulators

Jul 26, 2021

First Read

$51,906/$300,000 (17.3%)

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Hits & Takes
John Lothian & JLN Staff

The Cboe received approval from the Dutch for their new European derivatives market to trade equity index derivatives. Their EuroCCP clearinghouse also received approval to clear equity derivatives. The exchange is set to go live on September 6. – Cboe

The Dutch did not approve the CboeâEUR™s request to list a tulip trading volatility product, commenting, âEURœDat is niet grappig.âEUR

Bloomberg has a story titled “âEUR˜Dome of DoomâEUR™ Will Bake Texas and Central U.S. Next Week.” They said, âEURœHeat will bear down on Texas and the Great Plains within days, driving temperatures in Dallas above the 100-degree mark for the first time this yearâEUR and that it could reach Chicago and New York. – Bloomberg

Vlad Tenev, the CEO of Robinhood Markets, held a webcast over the weekend aimed at spurring interest in its upcoming IPO. Robinhood has held 20% of the shares it will float for its customers. He had a lot to say, including that Robinhood was all in on crypto and they were considering offering retirement account trading. He also promised to fix the issues that caused Robinhood to limit trading in meme stocks during the run up in AMC and Gamestop earlier this year. The stories are all below.

There were no new donations to the JLN MarketsWiki Education GoFundMe campaign over the weekend.

Today we have part one of an interview with Larry Abrams as part of our Open Outcry Traders History Project.

I am writing JLN this morning from the âEURœFork-in-the-RoadâEUR diner at the Summit Bechtel Reserve High Adventure Base of the Boy Scouts in West Virginia. My wife Cheryl and I are here visiting our daughter Katherine, who is on the staff for the fourth straight year. Cheryl rode the âEURœBig ZipâEUR zipline on Saturday as part of the family adventure camp experience. The SBR is an incredible facility and there are Scout units from across the country here for summer camp and high adventure experiences.

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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Larry Abrams âEUR” Open Outcry Traders History Project âEUR” Part 1
JohnLothianNews.com

Larry AbramsâEUR™ career started with a chance encounter on a ski lift which was prompted by a good deed. He and some friends helped to push a stranded car that was stuck during a blizzard in Park City, Utah. The next day on the lift line he was paired with the man whose car he had helped push out the night before, who happened to be an options market maker at the Cboe. By the time he got off the lift line, he knew that was what he wanted to do. He visited the man in Chicago (Abrams was living in Philadelphia) but realized that options also traded on the Philadelphia Stock Exchange. He did some networking and ended up as an options market maker on the PHLX.

Watch the video »

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The Spread âEUR” July 23, 2021
JohnLothianNews.com

Volatility makes a return appearance as the Delta variant jangles nerves; Treasury bond yields perk up; July options expire; John Lothian chats with CboeâEUR™s Ed Tilly about a World of Opportunity; UBS and SEC reach a settlement; FIA Tech expands; and the Options InstituteâEUR™s Kevin Davitt explains why contract size matters in the âEURœTerm of the Week.âEUR

Watch the video »

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Trading apps reduce markets to a game; Robinhood and similar online platforms do nothing to help the little guy or improve the financial system
Rana Foroohar – FT
What social networks have done to society, trading apps have begun doing to markets. Consider the similarities between last JanuaryâEUR™s riot in the US Capitol and the capital riots on trading platforms such as Robinhood, which goes public this week. Just as Washington was stormed by Trump supporters who organised themselves into a flash mob online, so the new crop of high-speed trading platforms have enabled retail âEURœbrosâEUR to band together in what can only be described as a multiplayer game to pump and dump various âEURœmemeâEUR stocks and cryptocurrencies.
/on.ft.com/2VepTCn

*****Trading has always been a game, but a game for the rich, or powerful, or in pit trading, tall. That has not changed. The change is the cost to participate with market structure facilitating free trading and fractional share trading. If the high commissions for odd lots were still in place, we would see less retail trading. We would also see more stock splits, like the days of old. I was trained for years to play this game by Parker Brothers.~JJL

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Crypto has âEUR˜no inherent worthâEUR™ but is good to trade, says Man Group chief; Luke Ellis compares digital assets to the 17th-century Dutch tulip craze
Gary Silverman – FT
The chief executive of Man Group, the worldâEUR™s largest listed hedge fund manager, says cryptocurrencies have âEURœno inherent worthâEUR but are creating trading opportunities for his company because of their wild price swings. The comments made by Luke Ellis in an interview with the Financial Times highlight an irony of todayâEUR™s trade in cryptocurrencies: much of the market action involves participants who doubt their ultimate utility.
/on.ft.com/3kSWAQM

*****Tulips were prettier.~JJL

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The Most Influential Spreader of Coronavirus Misinformation Online; Researchers and regulators say Joseph Mercola, an osteopathic physician, creates and profits from misleading claims about Covid-19 vaccines.
Sheera Frenkel – NY Times
The article that appeared online on Feb. 9 began with a seemingly innocuous question about the legal definition of vaccines. Then over its next 3,400 words, it declared coronavirus vaccines were âEURœa medical fraudâEUR and said the injections did not prevent infections, provide immunity or stop transmission of the disease.
/nyti.ms/2UKvhNK

****** This spreader of misinformation is worth over $100 million. It seems misinformation is a good business.~JJL

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Disinformation for Hire, a Shadow Industry, Is Quietly Booming; Back-alley firms meddle in elections and promote falsehoods on behalf of clients who can claim deniability, escalating our era of unreality.
Max Fisher – NY Times
In May, several French and German social media influencers received a strange proposal. A London-based public relations agency wanted to pay them to promote messages on behalf of a client. A polished three-page document detailed what to say and on which platforms to say it.
/nyti.ms/3rzSZZ1

****** Disinformation is just like information, except wrong. But it pays really well.~JJL

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Friday’s Top Three
Our top story on Friday was Crypto Nomads: Surfing the World for Risk and Profit, from The New York Times. Second was Gold TraderâEUR™s Chat Bragged About âEUR˜How EasyâEUR™ It Is to Manipulate Prices, from Yahoo Finance, which was our No. 1 story on Thursday. Third was the super-relevant Wild Superyacht Secrets I Learned When I Became a Deckhand, from Bloomberg. Gossip.

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MarketsWiki Stats
26,494 pages; 234,749 edits
MarketsWiki Statistics

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Lead Stories

Crypto-based âEUR˜shadow financial marketâEUR™ spooks regulators
Kellie Mejdrich – Politico
New financial services built on cryptocurrency are offering consumers the ability to borrow and trade billions of dollars without the oversight of bankers or their regulators. Washington is now scrambling to catch up, amid concerns of illegal activity and mounting consumer risks. Decentralized finance, or DeFi, operates on technology that powers digital currencies like Bitcoin and Ether. The services replicate the functions of traditional lenders and exchanges but operate autonomously and automatically across computer networks.
/yhoo.it/2TFCoGY

WorldâEUR™s Food Supplies Get Slammed by Drought, Floods and Frost
Bloomberg News
Coffee surges to highest since 2014 after frost hits Brazil; As food vulnerability rises, social unrest often follows
Extreme weather is slamming crops across the globe, bringing with it the threat of further food inflation at a time costs are already hovering near the highest in a decade and hunger is on the rise.
/bloom.bg/3BIYWaM

Cboe Europe and EuroCCP Receive Dutch Regulatory Approvals For New European Derivatives Market
Cboe Global Markets
Cboe Europe Derivatives receives approval for trading of equity index derivatives; EuroCCP, Cboe’s pan-European clearing house, also authorized to clear equity derivatives; Exchange set for go-live on 6 September, 2021, underscoring Cboe’s growth as a global market infrastructure provider
Cboe Europe, the pan-European exchange operator and subsidiary of Cboe Global Markets, Inc. (Cboe: CBOE), today announced that it has received the necessary regulatory approvals to launch Cboe Europe Derivatives, a new Amsterdam-based futures and options market, on 6 September, 2021.
/bit.ly/3iIXvAy

The horror scenario lurking in the plumbing of finance; Federal Reserve and US government action is leading to a shortage of quality collateral to underpin trades
John Dizard – FT
Back when Hollywood was fully functional, horror movies were reliably released around Halloween, or, sometimes, whenever there was a Friday the 13th. This year, though, the horror movie in US Treasuries, the mother of all contemporary markets, is being played over the summer and early autumn.
/on.ft.com/3i1nl3G

Hangover strikes Wall Street after âEUR˜epicâEUR™ Spac party; Regulators closing in on the great boom in blank cheque investment vehicles
Ortenca Aliaj – FT
There was a sense of reality starting to bite when financiers behind one of the great booms in markets in recent years gathered last month for the annual investor conference of the Wall Street charity Robin Hood Foundation.
/on.ft.com/3x9gI3w

Credit Suisse settles spying case with ex-wealth chief Iqbal Khan; Swiss bank reaches deal over case that led to departure of chief executive Tidjane Thiam
Owen Walker – FT
Credit Suisse has settled one of the most explosive feuds in its history, reaching an out-of-court agreement with its former star wealth manager Iqbal Khan as it prepares for its first quarterly results under new chair António Horta-Osório on Thursday.
/on.ft.com/3rABB6L

Robinhood promises to fix ‘the issues’ that outraged customers when it restricted trading in meme stocks
Victoria Cavaliere – Business Insider
Robinhood CEO Vlad Tenev acknowledged the company angered many customers after it blocked them from trading GameStop and other red-hot stocks; On Saturday, Tenev promised to learn from past mistakes and “ensure they never happen again.” Saturday’s roadshow event comes just days ahead of the commission-free trading app’s hotly anticipated IPO; Robinhood knows it angered many retail investors earlier this year when the trading app halted buying of GameStop, AMC, and other meme stocks amid an epic rally – and the company has pledged to earn back the trust of frustrated customers.
/yhoo.it/3i3HPsv

Bitcoin Surges Near $40,000 as Shorts Fuel Rally on Amazon Rumor
Joanna Ossinger – Bloomberg
AmazonâEUR™s job ad is fueling speculation about wider adoption; Short covering adds to the big rally for the largest token
Bitcoin surged near $40,000 as a flurry of short-covering intensified a rally apparently sparked by speculation over Amazon.com Inc.âEUR™s involvement in the crypto industry.
/bloom.bg/3kWCuVV

Stock Bulls Look Toward $17 Trillion Burning a Hole in Pockets
Claire Ballentine – Bloomberg
Money-market and bank account balances are still overflowing; Power of retail army was on display in weekâEUR™s S&P 500 rebound
In the stock market, the refusal of retail investors to back down from every macro threat has become the only story. When will it end? Judging by the size of all the pools of cash lying around, it could be a while.
/bloom.bg/3eWUY4R

For Big Tech, ThereâEUR™s a New Sheriff on the Beat; Head of U.K.âEUR™s CMA says it is stepping out of the shadow of the EU after Brexit
Parmy Olson – WSJ
The U.K.âEUR™s competition authority is stepping out of the shadow of the European Union, launching a flurry of new cases against big tech companies and becoming a new source of global scrutiny for the industry.
/on.wsj.com/3BCUTgp

Hedge Funds Seek the Amazon of Cryptocurrencies; Finance billionaires are betting increased regulation will broaden participation on digital currency exchanges.
Mark Gilbert – Bloomberg
During a gold rush, invest in shovel makers, goes the adage. ThatâEUR™s precisely what hedge funds looking to get in on the excitement around cryptocurrencies are doing with a flurry of investments in platforms created to buy, sell and store virtual currencies.
/bloom.bg/3BRKWf8

The Boss Wants You Back in the Office. Like, Now; Companies are starting to summon workers back, though many employees prefer more flexible office schedules
Chip Cutter – WSJ
After 16 months of enduring remote work as a viable pandemic-era solution, many CEOs have a message for their staff: Enough. At healthcare products maker Abbott Laboratories, ABT 2.16% executives told corporate employees to return to the companyâEUR™s headquarters near Chicago this month.
/on.wsj.com/2TAM8lL

Corporate America Rethinks Vaccine Mandates; New outbreaks have companies weighing their options.
Andrew Ross Sorkin, Jason Karaian, Sarah Kessler, Stephen Gandel, Michael J. de la Merced, Lauren Hirsch and Ephrat Livni – NY Times
Last month, Goldman Sachs unofficially kicked off Wall StreetâEUR™s return to the office in a celebratory mood. (There were food trucks and live music). The tone has since changed, as the highly contagious Delta variant spreads and nearly half of the U.S. population isnâEUR™t fully vaccinated.
/nyti.ms/3eXIZ70

What the new Beanie Baby bubble tells us about the future of markets; The boom may continue but there are lots of ways to imagine it going wrong
Merryn Somerset Webb – FT
No one interested in the history of bubbles will have forgotten the image of two furious divorcees dividing up their Beanie Baby collection on the floor of a Las Vegas courtroom back in 1999. The judge, fed up with their inability to split up their collection of ugly little soft toys themselves ordered Frances and Harold Mountain to do it in front of him, taking turns to choose. Frances went first. She chose Maple the Bear.
/on.ft.com/3rzRRVh

China Stocks Tumble in âEUR˜Panic SellingâEUR™ Amid Broad Crackdown
Jeanny Yu – Bloomberg
New Oriental Education falls by record after warning of impact; Meituan, property management firms also being targeted
A selloff in Chinese private education companies sent shockwaves through the equity market Monday, as investors scrambled to price in the growing risks from an intensifying crackdown by Beijing on some of the nationâEUR™s industries.
/bloom.bg/3kYsg79

VIX Plaintiffs Lose Bid to Unmask Traders Tied to 2018 Spike
Breanna Bradham and Nick Baker – Bloomberg
Funds sought disclosure in suits over losses from record surge; Five market makers accused of rigging index with flash quotes
A federal judge refused to identify five market makers accused in lawsuits of manipulating the VIX index, one of Wall StreetâEUR™s most closely watched benchmarks. The index saw a record spike on Feb. 5, 2018, causing widespread losses among investors who hadnâEUR™t anticipated such a sudden increase in market volatility. More than two dozen investors and fund managers sued over the next year, claiming unidentified firms that rigged the index âEURœrepeatedly posted and immediately canceledâEUR tens of thousands of quotes for S&P 500 options, whose prices are used to calculate the VIX.
/bloom.bg/3iMalOp

Why Joe Mansueto is betting big on Chicago: Crain’s Daily Gist podcast; Reporter Danny Ecker speaks with the billionaire founder of Morningstar on a special episode of the podcast.
Danny Ecker – Crain’s Chicago Business
The billionaire founder of Morningstar is pouring large sums of his wealth into charitable efforts and high-profile business ventures in Chicago, making a sizable impact on the city’s landscape. Reporter Danny Ecker speaks with Joe Mansueto on a special episode of Crain’s Daily Gist with host Amy Guth.
/bit.ly/3BDa2yh

Coronavirus

The Delta Variant Upends the WorldâEUR™s Pandemic Response; The strainâEUR™s fast transmissibility means higher Covid-19 vaccination rates are needed to contain it
Jason Douglas and Gabriele Steinhauser – WSJ
The Delta variant is changing calculations of governments around the world, raising doubts about how quickly they can leave the coronavirus pandemic behind, widening the gulf between highly vaccinated places and the rest, and infiltrating countries that had previously kept the virus at bay.
/on.wsj.com/3i4mGP2

Why EnglandâEUR™s newfound pandemic freedom is alarming for young people; Vaccine hesitancy and soaring rates leave the under-30s vulnerable to Covid-19
Charlotte Middlehurst – FT
Disappointment. This was the feeling I had after queueing at a pop-up jab tent in Greenwich on the hottest day of the year, only to be turned away. The reason, I was told by a cheerful official, was that it had only been seven weeks since my first vaccination, not the requisite eight stipulated by official guidelines. âEURœItâEUR™s in your best interests,âEUR she said, reassuringly, adding that if I snuck back at the end of the day there might be spares.
/on.ft.com/2Tz9zf8

Merkel aide warns of rising Covid infections and possible curbs on unvaccinated; Cases could reach 100,000 a day by September if they continue to rise at current rate, says chief of staff
Erika Solomon – FT
Chancellor Angela MerkelâEUR™s chief of staff has warned that coronavirus infections could spiral in the coming month and could trigger renewed restrictions on daily life for the unvaccinated.
/on.ft.com/3x1PMmd

US considers tightening mask guidance for vaccinated Americans; Medical adviser Fauci says country âEUR˜going in wrong directionâEUR™ as cases rise again and rate of jabs stalls
James Politi – FT
US health officials are discussing tightening their guidance on masks for vaccinated Americans, reversing their looser approach as the country grapples with new surges of coronavirus infections related to the Delta variant.
/on.ft.com/2VduMfe

An Unusually Deadly Outbreak in Taiwan Was Driven By Complacency
Cindy Wang and Iain Marlow – Bloomberg
Data shows overall fatality rate higher than global peers; Lack of preparation, âEUR˜Covid ZeroâEUR™ strategy are key risks
Taiwan won plaudits for its successful containment of Covid-19 last year, which made its recent virus resurgence all the more surprising. Data shows it was unusually deadly, as well. While Taiwan has seen fewer than 800 Covid deaths in total, 500 of them occurred in June alone, amid its biggest virus wave to date. The pathogen got through the stringent border curbs that had kept local infections at bay for most of 2020, seeding an outbreak that tore through the then-largely unvaccinated elderly population.
/bloom.bg/3y5PwnH

What Makes Delta the Most Disruptive Virus Variant
Jason Gale – Bloomberg
As the coronavirus sweeps across the globe in relentless waves, a succession of more-infectious strains has washed up. So far delta, the variant first reported in India in October, is the most worrisome. About twice as transmissible as the original virus that emerged in late 2019, delta combines a multitude of genetic features that have enabled it to pierce public-health defenses to stoke severe epidemics and trigger fresh rounds of movement restrictions or delay planned easings of them.
/bloom.bg/36Zw2VJ

Singapore Still Misses the Bigger Covid-19 Picture; The government canâEUR™t stop itself from micromanaging its pandemic response.
Brooke Sample – Bloomberg
Singapore Still CanâEUR™t Live With the Virus âEUR” Rachel Rosenthal
It was just a matter of time before SingaporeâEUR™s commitment to live with Covid-19 would be tested. The only surprise is how quickly that moment came and how avoidable it was.
/bloom.bg/3zErsJ1

As Delta Spread Quickens, CDC Pressured to Revise Mask Guidance
Fiona Rutherford – Bloomberg
Some experts urge even the vaccinated to resume covering up; Covid deaths surged 50% in just a week as Delta takes hold
A growing number of public-health experts are urging the Centers for Disease Control and Prevention to recommend that even fully vaccinated people wear face masks in public amid the resurgence of virus cases fed by the delta variant.
/bloom.bg/372vPRD

Fauci Warns on Path of Covid; Nations Set Curfews: Virus Update
Bloomberg News
We’re tracking the latest on the coronavirus outbreak and the global response. Sign up here for our daily newsletter on what you need to know. The top U.S. infectious disease expert, Anthony Fauci, warned that the nation is moving in the âEURœwrong directionâEUR in combating a new wave of the pandemic as vaccinations slow, and said a booster shot may be needed especially for the most vulnerable.
/bloom.bg/3yhM3lO

Ghana Says Delta Variant Driving NationâEUR™s Third Covid-19 Wave
Moses Mozart Dzawu – Bloomberg
Variant causing more hospitalization and deaths: president; Ghana aims to vaccinate all its adults by the end of the year
Ghana seems to be facing a third wave of coronavirus infections driven by the more transmissible delta variant, according to President Nana Akufo-Addo.
/bloom.bg/3x5Fodk

Dr. Fauci says a third booster shot for COVID-19 ‘might likely happen’ for people who are immunocompromised
Laura Casado – Business Insider
Dr. Anthony Fauci, the nation’s infectious disease expert and President Biden’s chief medical advisor, says that a third COVID vaccine booster shot “might likely happen.”
/yhoo.it/3i1krvO

The Delta Variant Is the Symptom of a Bigger Threat: Vaccine Refusal; There are almost as many reasons for vaccine hesitancy and refusal as there are unvaccinated Americans. But this problem, not the variant, lies at the root of rising infection rates.
Apoorva Mandavilli – NY Times
After an all too brief respite, the United States is again at a crossroads in the pandemic. The number of infections has ticked up âEUR” slowly at first, then swiftly âEUR” to 51,000 cases per day, on average, more than four times the rate a month ago. The country may again see overflowing hospitals, exhausted health care workers and thousands of needless deaths.
/nyti.ms/3eSSrs3

Why some experts recommend upgrading to N95 masks to help fight the delta variant; The N95 is a disposable filtering mask that has become the worldâEUR™s most reliable defense against the covid-19 virus.
Washington Post
The debate over masks is heating up again, with increasing calls for all Americans, regardless of coronavirus vaccination status, to return to wearing face coverings in indoor public places to help thwart the spread of the highly contagious delta variant. But some experts say the recommendations should specify the kind of masks people should be using.
/wapo.st/3BI0OAv

Pfizer vaccine second dose has âEUR˜sweet spotâEUR™ after eight weeks, UK scientists say; Longer schedule led to more Covid antibodies and higher proportion of helper T-cells, supporting immune memory âEUR” researchers
Press Association
An eight-week gap between the first and second doses of the Pfizer/BioNTech Covid-19 vaccine is a âEURœsweet spotâEUR when it comes to generating strong immune response while protecting the UK population against the Delta variant of coronavirus, scientists have said.
/bit.ly/3iGGUgA

Singapore Eyes Starting Quarantine-Free Travel in September
Faris Mokhtar – Bloomberg
Remarks to Parliament give first timeline for reopening border; Leaders expect to have 80% of population vaccinated by then
Singapore aims to relax more virus curbs, including starting to allow quarantine-free travel in September, marking the first time itâEUR™s set out a timeline to reopen borders that have been mostly shut for more than a year.
/bloom.bg/3BJcCm8

Exchanges, OTC and Clearing

CME Updates FX Market Profile Tool
The Full FX
CME Group has rolled out a new version of its FX Market Profile (FXMP) tool, the latest iteration includes data from FX Link, seven additional currency pairs and actual volume data from FX futures (in notional and contract terms). Users are also now able to conduct historical liquidity analysis.
/bit.ly/2Wde2VI

Further trading opportunities: first FX futures on the Eurex/KRX Link
Eurex
The new product listing of the U.S. Dollar/Korean Won Futures tradable via the Eurex/KRX Link is a fortuitous opportunity to discuss both the new products and the Korean market. We found the perfect interview partner in Jennifer Ahn, Head of Global Derivatives Team at Shinhan Investment Corp.
/bit.ly/2WdgXOa

MiFID II/MiFIR: Update on changes to the requirements for the flagging of orders according to MiFID II and MiFIR
Eurex
With respect to usage and decryption of Short and Long Codes, the future administrative practice, which was announced with Eurex circular 058/21, has been amended in accordance with the Exchange Supervisory Authority of the State of Hesse.
/bit.ly/3eZ83dU

Eurex launches deliverable cross currency swaps and OTC FX clearing; First clearing house to physically settle cleared cross currency swaps in CLSClearedFX, CLSâEUR™s settlement service for cleared FX products; Commerzbank, J.P. Morgan and Morgan Stanley already live; Unique service for cross currency swaps and OTC FX that offers netted settlement guaranteed by Eurex Clearing
Eurex
Following a successful test phase, Eurex Clearing has gone live with its clearing service for deliverable cross currency swaps and OTC FX. Commerzbank has joined J.P. Morgan and Morgan Stanley as Clearing Members to enable the completion of testing and go-live of the service. For Eurex and its parent company, Deutsche Börse, the launch once again underscores the GroupâEUR™s ambition to support the move from OTC to central clearing.
/bit.ly/3iNVl2z

Review of Collateral Haircuts – Effective July 23, 2021
CME Group
In conjunction with the regular review of market volatility and to ensure adequate collateral coverage, please find below the current acceptable collateral and haircuts for CME Clearing.
/bit.ly/3zHf1MB

August 2021 Delivery Date Memo
CME Group
Important dates and events through the month relevant to delivery and clearing procedures.
/bit.ly/3zyYjPi

HKEXVoice: Modernising Hong KongâEUR™s IPO Settlement Process
MondoVisione
FINI (Fast Interface for New Issuance) is a new platform being developed by HKEX that enables professional IPO market participants and regulatory authorities to interact seamlessly and digitally on the many important steps that comprise the end-to-end settlement process for new listings in Hong Kong.
/bit.ly/3kW3BQM

FESE: European Exchange Report 2020
MondoVisione
The European Exchange Report (EER) is the only direct source of integrated information on EuropeâEUR™s exchange industry. The report includes a one-page statement on each FESE member and outlines: Company information âEUR” Contact details, sectors, number of employees, and other company information; Trading figures âEUR” Comparable trading statistics in line with the FESE Statistics methodology; Financial figures âEUR” Detailed information on revenues, costs, and net income including their breakdown, allowing for easy and transparent comparison of key financial data
/bit.ly/2UPcDV5

Fintech

China Crackdown Makes Hong Kong Index WorldâEUR™s Biggest Tech Loser
Jeanny Yu and Abhishek Vishnoi – Bloomberg
An index launched a year ago to give investors greater exposure to ChinaâEUR™s internet giants is now the worldâEUR™s worst-performing major technology gauge. The Hang Seng Tech Index has been on a roller-coaster ride in the last 12 months. The gauge, which marks its one-year anniversary on Tuesday, was up 59% at its February peak but has since seen more than $551 billion in market value wiped out amid BeijingâEUR™s clampdown on the sector.
/yhoo.it/3hZEZVn

Robinhood CEO says he is considering offering U.S. retirement accounts
Echo Wang and Krystal Hu – Reuters
Robinhood Markets Inc is considering launching U.S. retirement accounts, CEO and co-founder Vlad Tenev said on Saturday in a webcast with users of its trading app looking to participate in its initial public offering, which is set to price next week.
/yhoo.it/3x6j17B

Robinhood CEO says he is considering offering U.S. retirement accounts
Echo Wang and Krystal Hu – Reuters
Robinhood Markets Inc is considering launching U.S. retirement accounts, CEO and co-founder Vlad Tenev said on Saturday in a webcast with users of its trading app looking to participate in its initial public offering, which is set to price next week.
/yhoo.it/3x6j17B

Big Tech calls for âEUR˜regulationâEUR™ but is fuzzy on the details; Silicon Valley says it wants more oversight yet does little to promote it in practice
Marietje Schaake – FT
In the realm of Big Tech, opposing realities exist in parallel. Facebook executives are once again calling for more âEURœregulationâEUR, while simultaneously pushing to get the USâEUR™s top regulator, Federal Trade Commission chair Lina Khan, recused. Similarly, a hiring spree of new tech lobbyists and lawyers last month raised eyebrows in light of recent bold statements from chief executives such as FacebookâEUR™s Mark Zuckerberg, AppleâEUR™s Tim Cook and AlphabetâEUR™s Sundar Pichai explicitly asking for regulation.
/on.ft.com/3laQYBJ

T+1: A Double-Edged Sword?
Uday Singh, Head of Professional Services, Broadridge Financial Solutions via MarketsMedia
The coming shift to a âEURœT+1âEUR trade settlement cycle represents a critical step for the U.S. financial services industry at a time when markets are changing and accelerating at a dizzying pace. However, for individual firms, the compression of the settlement cycle to 24 hours will also create significant challenges and potential new costsâEUR”many of which might not yet be obvious.
/bit.ly/3BFbEHz

Cybersecurity

4 ways to protect yourself from ransomware attacks
Erica Gerald Mason – Yahoo Life
Worried about being the victim of ransomware? Here’s how to protect yourself. (Photo: Getty)
Ransomware attacks are on the rise. Most recently, there was a ransomware attack on the Colonial Pipeline, which left the East coast with a fuel shortage âEUR” and which forced the company to pay hackers $5 million. But what exactly is ransomware? In short, ransomware is a program that appears in the form of a virus or an executable file that overtakes a computer or network, locks out its users, and then demands payment for its return.
/yhoo.it/3rDIvIb

The Cybersecurity 202: Cyber experts give Biden top marks at six months
Joseph Marks – The Washington Post
At his six-month mark in office, President Biden is making the right moves to ensure the United States is safer in cyberspace, according to an overwhelming majority of cybersecurity experts we polled.
BidenâEUR™s term has been marked by a string of cyber cataclysms starting with cleaning up the SolarWinds Russian espionage campaign, which was discovered soon before he took office and affected hundreds of major businesses and several federal agencies. More recently, the nation has been struck by significant ransomware attacks that have threatened U.S. gas and meat supplies and wreaked havoc on small businesses.
/wapo.st/3zGKxu5

Cryptocurrencies

Leader in Cryptocurrency Industry Moves to Curb the Highest Risk Trades; The move would reduce the size of the bets that investors can make by lowering the amount of leverage it offers to 20 times from 101 times.
Ephrat Livni and Eric Lipton – NY Times
A popular cryptocurrency exchange announced on Sunday that it was curbing a type of high-risk trading that has been blamed in part for sharp fluctuations in the value of Bitcoin and the casino-like atmosphere on such platforms globally.
/nyti.ms/3iKGbLE

ChinaâEUR™s Digital Yuan Puts Ant and Tencent in an Awkward Spot; Jack MaâEUR™s Ant has quietly run pilot tests using digital yuan; âEUR˜itâEUR™s even more risky to stay on the sidelines,âEUR™ says one observer
Jing Yang – WSJ
China is calling on private-sector pioneers Ant Group Co. and Tencent Holdings Ltd. TCEHY -3.95% to help it develop a state-backed digital currency that threatens the pairâEUR™s highly popular payment networks.
/on.wsj.com/3y53nKJ

Investors Inundate ZapâEUR™s Mallers After El Salvador Bitcoin Push
Olga Kharif – Bloomberg
Money-transfer startup seeks to expand to 100 countries; MallersâEUR™ efforts were initially funded by family members
Just a few months ago, Jack Mallers was pretty much indistinguishable from the horde of baseball cap and hoodie-wearing young men touting Bitcoin. Now venture capitalists are clamoring to offer him money.
/bloom.bg/3rB9wMg

Hedge Funds Back Away From Binance on Regulatory Risks, FT Says
Anchalee Worrachate – Bloomberg
Fund cuts activity amid âEUR˜orchestrated regulatory attackâEUR™: FT; Binance says has not seen a slowdown in institutional activity
Several hedge funds have curbed their trading on Binance as a regulatory crackdown on the worldâEUR™s biggest crypto exchange intensifies, the Financial Times reported. Crypto specialist Tyr Capital said it has âEURœsignificantly decreased its exposureâEUR to Binance, according to the FT. Another hedge fund, ARK36, told the newspaper it is also reducing its activity on the venue due to âEURœwhat feels like an orchestrated regulatory attack.âEUR
/bloom.bg/371nu0I

BitcoinâEUR™s Corporate Diehards Face Earnings Reckoning After Slump
Jeran Wittenstein – Bloomberg
Tesla, MicroStrategy likely to post writedowns in coming days; Bitcoin sideshow casts a shadow on Tesla, Wedbush analyst says
ItâEUR™s time for BitcoinâEUR™s corporate champions to account for a brutal selloff in the cryptocurrency. Companies such as Tesla Inc. and MicroStrategy Inc. that have emerged as some of BitcoinâEUR™s biggest backers will have to reckon with their digital holdings in earnings reports next week after the price of the token tumbled 41% in the second quarter. Square Inc., one of the few other large companies to add the cryptocurrency to its balance sheet, will report results in August.
/bloom.bg/2VcaT84

Early Crypto Mogul Says China Crackdown May Lead to Outright Ban
Bloomberg News
Bobby Lee says Beijing may try to ban cryptocurrency holdings; Former exchange CEO still sees big long-term gains for Bitcoin
ChinaâEUR™s crackdown on cryptocurrencies will probably intensify and may even lead to an outright ban on holding the tokens, according to Bobby Lee, one of the countryâEUR™s first Bitcoin moguls. Lee knows what itâEUR™s like to be on the wrong side of Beijing: He sold BTC China, the nationâEUR™s first Bitcoin exchange and at one point the second biggest worldwide, in the aftermath of a crackdown in 2017.
/bloom.bg/3y4Ho6T

Robinhood CEO says the company is all-in on crypto and that users can expect new crypto features at ‘some point’
Margaux MacColl – Business Insider
Robinhood CEO Vlad Tenev says the company is focused on expanding its crypto offerings. He said users can expect a crypto wallet at “some point.” It’s a glimpse at the company’s future ahead of it’s highly anticipated IPO.
Robinhood CEO Vlad Tenev announced Saturday that crypto is a lynchpin of the retail investment app’s future, and a wallet could be in the works. “We’ve been doing a lot of work behind the scenes to provide our crypto customers with the functionality that they’ve been asking for,” he said. “We know you want wallets.”
/yhoo.it/2VbApdI

Largest Ethereum-based Decentralized Exchange Delisting Tokens
Michael Cohen – Benzinga
What happened: The largest Ethereum-based (CRYPTO: ETH) decentralized cryptocurrency exchange has delisted several tokens ahead of anticipated regulatory scrutiny. Uniswap has removed Tether Gold and tokenized stocks from crypto derivatives platforms like Synthetix.
/yhoo.it/3y9d6Qy

Binance US weighs plans to go public, CEO CZ says
Abdelaziz Fathi – FinanceFeeds
Binance.US, the American outpost of the worldâEUR™s biggest crypto exchange, has seemingly plans to follow CoinbaseâEUR™s path and go public one day. Binance CEO Changpeng Zhao âEURœCZâEUR said the US arm of the global platform is considering an initial public offering (IPO) despite the ongoing regulatory crackdown.
/bit.ly/3BFaKej

NFTs Are Coming to IndiaâEUR™s Flourishing Art Market;l Auction houses are struggling to cater to IndiaâEUR™s growing appetite for art, and with 624 million internet users in India, NFTs could be the perfect disruptor.
Ruchir Dalmia – Coindesk
The arts sector has visibly struggled during the pandemic. A study by Art Basel and UBS found that public auction sales have fallen by an average of 30% over the past year. The impact has in part been offset by a forced transformation as some auctioneers and galleries, turned reluctant disruptors, moved to engage patrons through digital platforms.
/bit.ly/3iNB5y5

BlockFi Says Vermont Has Joined Ranks of States Probing the Crypto Lender; Alabama, Texas and New Jersey are investigating whether the firm’s marquee offering violates local securities laws.
Danny Nelson – Coindesk
Embattled cryptocurrency lender BlockFi is facing scrutiny from regulators in a fourth state, Vermont, over the legality of its interest account product.
/bit.ly/3l2xnDH

When bitcoin bros* talk unregistered securities; Pomp and some sad circumstances.
Jemima Kelly and Jamie Powell – FT
Good morning to everyone including those who tweet things that come round to bite them on the proverbial. (We can once again embed tweets! Thank you FT devs.)
/on.ft.com/3iSwQl3

FTX reduces max leverage from 101x to 20x to encourage âEUR˜responsible tradingâEUR™; Sam Bankman-Fried, the CEO of surging crypto derivatives exchange, FTX, has slashed its maximum leverage in a move to promote responsible trading practices.
Martin Young – CoinTelegraph
Crypto derivatives exchange FTX has decided to curb risky trading by limiting the leverage available to its users. The exchange, founded by crypto billionaire Sam Bankman-Fried (SBF), has reduced the maximum leverage available on the platform down to 20x, a significant reduction from its previous limit of 101x.
/bit.ly/3zECkGu

Politics

Fraught G20 meeting on new climate targets highlights divisions; Marathon negotiations end with split on phasing out coal and ending fossil fuel subsidies
Leslie Hook – FT
G20 environment ministers pledged to adopt new climate targets within the next three months, after a hard-fought summit in Naples which at times appeared to be on the brink of disintegrating.
/on.ft.com/2V92tOT

U.K. to Scrap Post-Brexit Red Tape on Wine Imports, Cutting Cost
Joe Mayes – Bloomberg
EU wine shipments to Britain faced extra paperwork from 2022; Move will save 10 pence on a bottle of wine, government says
The U.K. government said it will scrap a piece of planned red tape on wine imports. a move it said would save 10 pence ($0.14) on each bottle imported into Britain. From 2022, wine shipped to the U.K. from the EU, or about 55% of all wine consumed in Britain, was due to require a so-called VI-1 certificate, which requires laboratory analysis of the wine to prove it meets certain regulations. The wine and spirits industry had warned this paperwork would have pushed up prices.
/bloom.bg/2TFD9zO

Power outages cripple parts of the Middle East amid record heat waves and rising unrest
Louisa Loveluck, Kareem Fahim and Sarah Dadouch – Washington Post
Record heat waves and crippling energy shortages across much of the Middle East are plunging homes and businesses from Lebanon to Iran into darkness and stirring unrest as poor families swelter while many of the rich stay cool with backup generators.
/wapo.st/3kTOasf

BidenâEUR™s Antitrust Team Signals a Big Swing at Corporate Titans; The president has stacked his administration with crusaders who have spent their careers challenging corporate consolidation.
im Tankersley and Cecilia Kang – NY Times
President Biden has assembled the most aggressive antitrust team in decades, stacking his administration with three legal crusaders as it prepares to take on corporate consolidation and market power with efforts that could include blocking mergers and breaking up big companies.
/nyti.ms/3kYhFt4

Regulation

Regulators in three US states close in on BlockFiâEUR™s cryptocurrency accounts; New Jersey-based company has raised $14.7bn by offering interest on digital coin deposits
Gary Silverman in New York and Miles Kruppa – FT
US state authorities have opened a new front in the regulatory crackdown on the cryptocurrency business, taking aim at BlockFi, a company t
hat has raised $14.7bn by offering interest-bearing crypto accounts.
/on.ft.com/2VccxXi

Regulator considers compensation for steelworkersâEUR™ mis-sold pensions; FCA may invoke rarely used powers to help thousands of former British Steel workers given unsuitable advice
Josephine Cumbo – FT
The UKâEUR™s financial regulator is considering triggering rarely used powers to force financial advisers to pay compensation to thousands of steelworkers who were victims of pension mis-selling.
/on.ft.com/3x5maVh

EU proposals to regulate AI are only going to hinder innovation; Start-ups using artificial intelligence will find themselves at the sharp end of new rules
Andrew McAfee – FT
While some of us under lockdown churned through streaming services and sourdough starters, others decided to use the time for a little self-improvement âEUR” taking up Dutch or Danish, Swahili or Esperanto. Duolingo, the free app many downloaded, has become the worldâEUR™s most popular way to learn a second language. The company is now hoping to ride that interest into an initial public offering: last week it said it wanted to be valued at up to $3.4bn in its IPO.
/on.ft.com/36ZozGf

SFOâEUR™s boss in spotlight as fraud hunters ask: âEUR˜When are they going to do something?âEUR™
Lucy McNulty and James Booth – Financial News
Some in the City are wondering how sharp the SFOâEUR™s teeth are anymore as the UK agency tasked with investigating fraud and white collar crime navigates a caseload slump, judicial rebukes and staff complaints about its culture under director Lisa Osofsky.
/bit.ly/3eW7ly6

Bankers now face compliance crackdown over Covid rule breaches; âEUR˜WeâEUR™ve seen a lot of work relating to Covid breaches âEUR” people getting arrested for breaking Covid rules, people getting fined,âEUR™ says one financial lawyer
Lucy McNulty – Financial News
Compliance rules have always been a headache for City workers. During the pandemic, they are becoming a nightmare. Texts about market-sensitive information? Obviously illegal. Unrecorded client Zoom meetings? A clear no-no. But over the past year, the list of questionable behaviour has swelled to include government Covid restrictions, including gatherings of more than six, or fudging quarantine rules to go out to buy a pint of milk.
/bit.ly/2WgnRCh

Criminal Commission to consider report claiming Libor rigger Tom Hayes was innocent; The Criminal Cases Review Commission has confirmed it is considering an academic paper that claims convicted Libor rigger Tom Hayes was wrongfully imprisoned
Lucy McNulty – Financial News
The Criminal Cases Review Commission has confirmed it is considering an academic research that claims convicted Libor rigger Tom Hayes was wrongfully imprisoned, as part of its ongoing inquiry into the former trader’s case.
/bit.ly/2WcBwKE

FCA staff receiving stress-related counselling triples in âEUR˜challengingâEUR™ pandemic year; The UKâEUR™s markets watchdog doubled its spending on initiatives to boost employee morale in the year to early 2021
Lucy McNulty and Shruti Tripathi Chopra – Financial News
The numbers of Financial Conduct Authority staff receiving counselling for âEURœwork or external stressâEUR tripled during the first year of a pandemic which has prompted a spike in mental ill-health amongst City workers.
/bit.ly/3kX6MYo

UK financial watchdog warns consumers over CoinBurp crypto launch
Huw Jones – Reuters
Crypto broker CoinBurp is not fully authorised before Monday’s planned launch of its $BURP token and initial exchange offering, Britain’s Financial Conduct Authority (FCA) said on Sunday, in its latest crack down on crypto trading.
/reut.rs/2UNlre9

Consumer warning on Coinburp Limited
UK FCA
The FCA has become aware of promotional material indicating that Coinburp Limited (the Firm) is intending to launch the CoinBurp $BURP Token and Initial DEX Offering on Monday 26 July 2021. The Firm does not yet hold full FCA Registration under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (as amended) (MLRs) but has submitted an application to the FCA for registration.
/bit.ly/3zCXqVM

Big Four Auditors Fail to Meet U.K. Regulator Expectations; KPMG performed the worst of the big four, with only 59% of its audits graded as good or requiring only limited improvements, according to the regulator
Simon Clark – WSJ
The U.K.âEUR™s accounting regulator said audits performed by the big four accounting firms and smaller rivals failed to meet expectations, raising troubling questions about the financial statements upon which investors rely.
/on.wsj.com/3kUDVUL

ISDA Announces Results of Consultation on Fallbacks for GBP LIBOR® ICE Swap Rate® and USD LIBOR® ICE Swap Rate®
ISDA
ISDA today announces the results of its consultation on the implementation of fallbacks for the sterling LIBOR ICE Swap Rate and the US dollar LIBOR ICE Swap Rate.
/bit.ly/3BHSpgz

OSC publishes guidance on enforcement investigations and document production
Breadcrumb
OSC
The Ontario Securities Commission (OSC) today published guidance to assist individuals and companies that participate in initial assessments and investigations being conducted by Enforcement Staff. These resources are intended to facilitate cooperation and efficient investigations.
/bit.ly/2Wlgj1k

ASIC cancels AFS licence of Fentborough Pty Ltd
ASIC
ASIC has cancelled the Australian financial services (AFS) licence of QLD based financial services provider Fentborough Pty Ltd (Fentborough). ASIC found that Fentborough failed to lodge its annual accounts and compliance certificates for the financial years ended 30 June 2019 and 30 June 2020 and failed to maintain membership with the Australian Financial Complaints Authority (AFCA).
/bit.ly/3zCuIVi

BT Funds Management and Asgard Capital Management ordered to pay a $3m penalty for charging fees for no service and making misleading statements
ASIC
The Federal Court has imposed civil penalties totalling $3 million against BT Funds Management Limited (BT) ($1.5m) and Asgard Capital Management Limited (Asgard)($1.5m) for charging fees for no service and making misleading statements.
/bit.ly/3iNkxGD

Ian Hudson sentenced to 4 years imprisonment for fraudulent trading and carrying on regulated activities without authorisation
UK FCA
Today, at Southwark Crown Court, His Honour Judge Tomlinson sentenced Ian James Hudson to 4 yearsâEUR™ imprisonment for one count of fraudulent trading, with two additional terms of 14 months, each reflecting a breach of s19 FMSA, to run concurrently following his earlier guilty plea. This followed charges laid by the FCA namely carrying on a business, Richmond Associates, for a fraudulent purpose and carrying on regulated activities when not authorised or exempt.
/bit.ly/3BBmr5L

Investing and Trading

Investors Are Buying American; Money managers world-wide put more than $900 billion into U.S. funds in the first half, a record amount
Sebastian Pellejero – WSJ
Investors around the globe are pouring money into U.S. financial assets, a sign of confidence that the worldâEUR™s largest economy remains poised to pull through the Covid-19 pandemic better than many others.
/on.wsj.com/3i4cA0l

Oil trader Vitol hands top staff equivalent of $7m each; Payout of $2.9bn for almost 400 partners follows bumper year prompted by pandemic volatility
David Sheppard and Neil Hume – FT
Vitol has handed a record payday to senior executives and staff, giving the equivalent of more than $7m to each of the London-run oil trading companyâEUR™s near 400 partners.
/on.ft.com/3i3VD6f

Why collective risk-sharing should be a central element in pensions; Large, diversified CDC funds will allow generations to protect each other
Martin Wolf – FT
Pension decisions cast a very long shadow. So, any system has to be stable, as well as effective in ensuring livelihoods in old age. Alas, the UKâEUR™s falls far short of what is needed.
/on.ft.com/3rxAB3f

Whipsawed Bond Traders Hunker Down for the Return of the Fed
Liz McCormick – Bloomberg
Traders wonder about $120 billion a month bond-buying program; âEUR˜We donâEUR™t expect the Fed to insert any new dovish rhetoricâEUR™
Bond traders are bracing for more potential turbulence as the Federal Reserve prepares to step back into the fray and fresh data trickles in. Concerns about the economic fallout from the coronavirus delta variant have seen Treasury market volatility surge, with the ICE BofA Move Index climbing to an almost four-month high this week. Interest rates have dropped, bets on Fed tightening have been pushed back and there has been a partial unwind of the massive yield curve flattening that followed the Federal Open Market CommitteeâEUR™s last decision and a stronger-than-anticipated consumer-price inflation reading.
/bloom.bg/3y9fjLQ

Jeremy GranthamâEUR™s Firm Says Stocks Are Overpriced and Social Media Is Wrong; The money manager expects investments to lose money in 10 of 11 asset classes over the next seven years.
Suzanne Woolley – Bloomberg
One of the investing worldâEUR™s most prominent bears says that the meme stonk crowd has it wrong: Not only are some stocks priced too high, nearly all companies are in fact overvalued.
/bloom.bg/3i9Vsql

$3 a Gallon! Who Can Do Something About Gas Prices? The U.S.âEUR™s emergency oil stockpile is twice as big as it needs to be. Now would be a good time to put some of it on the market.
Julian Lee – Bloomberg
With warnings against overseas travel firmly in place, that summer road trip is looking more attractive. ItâEUR™s also looking more expensive. Perhaps the U.S. government should look at what China is doing to ease rising oil prices and sell off some of its strategic stockpile.
/bloom.bg/36XyNXG

FedâEUR™s MBS Buying High on Agenda as Officials Begin Taper Talk
Matthew Boesler – Bloomberg
Policy hawks at the Federal Reserve are setting their sights on scaling back the U.S. central bankâEUR™s massive intervention in the mortgage market as home prices soar. But the Fed leadership doesnâEUR™t sound convinced by arguments in favor of a hasty exit strategy.
/yhoo.it/3rM2MeZ

A Space CompanyâEUR™s Wall Street Launch Misfires; Investors werenâEUR™t told about MomentusâEUR™s technology challenges and national-security issues, SEC says
Dave Michaels – WSJ
A space-transportation company trying to go public didnâEUR™t tell potential investors that its satellite-hauling technology failed, that it lost contact with a satellite in space and that its Russian founder had been deemed a national-security risk by the U.S. government, the Securities and Exchange Commission said.
/on.wsj.com/3kXE7CM

SPAC Shareholders Get Distracted; Also private markets, executive coaching and AMC GoFundMe.
Matt Levine – Bloomberg
Churchill Capital Corp. IV is a special purpose acquisition company, a pot of money worth about $10.00 for each share that it issued. Its stock closed yesterday at $22.90 per share, which is more than $10.00. This is because it has announced a plan to merge with Lucid Motors Inc., an electric-vehicle company, and Churchill shareholders are excited about this merger and think it is a good deal. 1 If Churchill closes its deal with Lucid, Churchill shareholders will have Lucid stock that they think is worth $22.90. If it does not close its deal with Lucid, theyâEUR™ll get their $10 back in cash. They would prefer the $22.90. 2
/bloom.bg/3iQmcLo

Stagflation is âEUR˜a legitimate riskâEUR™ that would be painful for U.S. markets
Christine Idzelis – MarketWatch
The possibility of stagflation âEUR” an economic environment marked by high unemployment, high inflation, and low economic growth, experienced in the U.S. in the 1970s âEUR” has moved onto the radar screen of some market analysts.
/on.mktw.net/2WaKyb1

Environmental, Social and Corporate Governance

Extreme weather takes climate change models âEUR˜off the scaleâEUR™; Scientists say the shifting pattern of the jet stream is exacerbating the effects of climate change
Leslie Hook, Christian Shepherd and Nastassia Astrasheuskaya – FT
Fires, floods, heatwaves and droughts. The deadly weather that has unfolded in recent weeks has left climate scientists âEURœshockedâEUR and concerned that extreme events are arriving even faster than models predicted.
/on.ft.com/3rzoS3X

Fidelity International threatens tough stance on climate and gender; Global asset manager, which oversees $787bn, to vote against company directors falling behind on issues
Attracta Mooney – FT
Fidelity International, the global asset manager, says it will punish directors at more than 1,000 companies globally next year if they fail to tackle the issues of climate change and a lack of boardroom gender diversity.
/on.ft.com/3y1033o

What growing avocados in Sicily tells us about climate change and the future of food; Changing temperatures across the globe are shifting the seasons and the crops that farmers can grow
Emiko Terazono – FT
At the fertile foothills of Mount Etna, Andrea Passanisi surveys his avocado grove under SicilyâEUR™s blue skies. He started growing the tropical fruit in what used to be his grandfatherâEUR™s vineyard and, helped by the warming climate, is now sending his produce across Europe.
/on.ft.com/3rM48q5

Insurers WonâEUR™t Save a Heating World From Floods and Fire; From Germany and China to California and Australia, the risks from climate calamities are getting too hard to calculate. Expect fewer policies and soaring premiums.
David Fickling – Bloomberg
ThereâEUR™s bad news for those looking for comfort in the face of flooding thatâEUR™s inundated cities in China, Germany and India and wildfires that have consumed suburbs in California, Canada, and Australia: The insurance industry isnâEUR™t planning on hanging around to bail you out.
/bloom.bg/3x4AQDY

Amid summer of fire and floods, a moment of truth for climate action; âEUR˜We are all in the same boat,âEUR™ says one diplomat from the developing world. âEUR˜That is what this summer is telling us.âEUR™
Sarah Kaplan and Brady Dennis – Washington Post
The panicked commuters of Zhengzhou, China, could only stand on seats and cling to poles in a desperate attempt to keep their heads above the muddy torrent this past week, as floodwaters from record-breaking rains inundated the subway system.
/wapo.st/3eWTffJ

US shale dealmaking wave is transforming the industry; New breed of âEUR˜super independentsâEUR™ dominate the sector in wake of M&A worth more than $30bn
Justin Jacobs – FT
A wave of dealmaking in AmericaâEUR™s shale patch is intensifying, wiping out weak players and leaving the once-fractured sector in the hands of a new breed of âEURœsuper independentsâEUR.
/on.ft.com/3iRmf9I

IOSCO Consults On ESG Ratings And Data Providers
IOSCO
The Board of the International Organization of Securities Commissions (IOSCO) is soliciting feedback on a set of proposed recommendations regarding Environmental, Social and Governance (ESG) Ratings and Data Providers.
/bit.ly/3iJ3G7I

Institutions

Goldman and DWS prepare bids for NN Investment Partners; Asset managers get ready to move in as deadline looms for final offers on Dutch insurerâEUR™s €300bn division
Harriet Agnew – FT
Goldman Sachs Asset Management and GermanyâEUR™s DWS are preparing bids for NN GroupâEUR™s investment management arm as consolidation in the industry gathers pace.
/on.ft.com/3y5dijN

DanskeâEUR™s Customer Flight Exposes the Long-Term Cost of a Scandal
Frances Schwartzkopff – Bloomberg
Three years after the world learned of Danske Bank A/SâEUR™s central role in one of EuropeâEUR™s biggest money-laundering scandals, the cost of that stunning failure of governance is still palpable.
/bloom.bg/2TyIPvd

Credit Suisse to NZZ: Parties in Khan Case End Criminal Process
Claudia Maedler – Bloomberg
Credit Suisse Group AG has reached an agreement with all parties in the matter surrounding the shadowing of two of its executives, NZZ am Sonntag reported, citing a bank spokeswoman.
/bloom.bg/2VeocVx

Credit Suisse Settles Spying Case With Former Wealth Chief Khan
Yueqi Yang – Bloomberg
Credit Suisse Group AG said it reached a settlement with its former wealth-management executive Iqbal Khan and a private detective firm, calling to a close a spying scandal that rocked one of EuropeâEUR™s biggest lenders and ultimately led to the ouster of its chief executive officer Tidjane Thiam last year.
/yhoo.it/3rzOrSr

Xavier Rolet on his 130-hour weeks at Goldman: âEUR˜Not sure what todayâEUR™s generation is complaining aboutâEUR™; Pay at the bank was ‘good for a broke kid from a Parisian sink estate’, and the best Wall Street restaurants delivered lunch and dinner straight to their desks. ‘Heaven to a Frenchman!’
Paul Clarke – Financial News
How many hours do you really need to clock in investment banking? A group of first-year Goldman Sachs analysts, stretched to breaking point by 100-hour weeks, pleaded for an 80-hour cap in a leaked PowerPoint presentation that has forced banks to overhaul working practices, hike pay and roll out special bonuses in a bid to retain their allure.
/bit.ly/3BKM9VA

Citi expands markets and securities business in Australia with several new hires; Three new hires for the markets and securities business in Australia have been confirmed at Citi from State Street, Macquarie and Bank of America.
Annabel Smith – The Trade
Citi has expanded its markets and securities division in Australia with three senior appointments in a bid to meet increased client demand in the market.
/bit.ly/3kV3oNE

BNY Mellon appoints first chief growth officer to capitalise on expansive strategy; Former senior executive vice president at BNY Mellon has been promoted to the role after working at the bank since July 2018.
Wesley Bray – The Trade
BNY Mellon has named its chief growth officer in a newly created role, as the investment bank looks to capitalise on its strategy to expand into new technologies and business areas.
/bit.ly/3eZ725A

Cboe gains Dutch regulatory approval for new derivatives market ahead of launch; The new Amsterdam based futures and options market at Cboe is expected to launch on 6 September.
Annabel Smith – The Trade
Cboe Europe has received approval from the Dutch regulator to operate its new European derivatives market from 6 September after confirming plans to launch earlier this year. The regulatory approval from the Dutch Authority for the Financial Markets (AFM) means Cboe Europe Derivatives is now authorised to operate for equity index futures and options.
/bit.ly/2WnkY2M

Dutch asset manager turns to decision trees for currency predictions; APG has improved prediction accuracy for G10 currency movements after adopting decision tree-based machine learning.
Hamad Ali – Waters Technology
Decision trees are among the more popular applications of machine learning in the capital markets. Uses include finding patterns in request-for-quote (RFQ) datasets and predicting stock prices. Decision trees employ a tree-like model to map out decisions, or âEURœnodes,âEUR and the probabilities of consequences branching out from these nodes, to work through a database and calculate outputs.
/bit.ly/3kWTgEf

Regions

Sri Lanka to Repay $1 Billion Bond, Ending Default Threat
Asantha Sirimanne and Anusha Ondaatjie – Bloomberg
Will transfer funds for the payments on Monday, Minister says; Nation still has to repay another $1.5 billion next year
Sri Lanka plans to repay a $1 billion bond by the Tuesday deadline, keeping intact its reputation for honoring debt as concern mounts about the nationâEUR™s overseas financing.
/bloom.bg/371lSUA

Singapore Restaurant Owners Vent Frustration as Dine-In Shutters
Joanna Ossinger – Bloomberg
Chefs say they are âEUR˜speechlessâEUR™ and refer to double standards; Food and beverage industry has been subject to scrutiny
Some of SingaporeâEUR™s top chefs are fed up with the governmentâEUR™s on-again, off-again measures to stop the spread of Covid-19, which include a temporary shutdown of in-person dining.
/bloom.bg/2URbrR9

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First Read $53,406/$300,000 (17.8%) ++++ Hits & Takes John Lothian & JLN Staff A gentle reminder. The NFA and NIBA announced a joint webinar about navigating regulatory requirements in a hybrid environment. The webinar is scheduled the day of my 31st wedding...

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