Deputy Attorney General Lisa O. Monaco Announces National Cryptocurrency Enforcement Team

Oct 7, 2021

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STA 2021: Equity Volume Robust, But the Drumbeat for Reform Grows Louder
Suzanne Cosgrove – John Lothian News

Although market competition and structure are hot topics in the securities industry, a Wednesday fireside chat at the STA 2021 conference on the competitive landscape between brokers and exchanges with Jonathan Kellner, CEO of MEMEX, and Joe Mecane, head of execution services at Citadel Securities, focused more on agreement than on discord.

With some 16 equity exchanges making up 50% to 60% market share on any given day, 32 Alternative Trading Systems (ATS) making up about 10% and more than 3,000 broker-dealers making up 30% to 40%, “it appears competition is alive and well in our markets,” noted panel moderator Kimberly Russell, vice president, ETF Capital Markets, State Street Global Advisors.

The relatively recent influx of retail market participants also has brought changes, Russell noted, with some heavy trading days recording off-exchange trading at a market share of more than 50%. That phenomenon has stirred renewed concerns about market fragmentation and the quality of the public quote.

To read the rest of this story, go here.


Hits & Takes
John Lothian & JLN Staff

The U.S. Department of Justice yesterday announced the creation of a “National Cryptocurrency Enforcement Team (NCET) to “tackle complex investigations and prosecutions of criminal misuses of cryptocurrency, particularly crimes committed by virtual currency exchanges, mixing and tumbling services, and money laundering infrastructure actors.”

NCET will combine the expertise of the Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), Computer Crime and Intellectual Property Section (CCIPS) and other sections in the division, with experts detailed from the U.S. Attorneys’ Offices.

Notice from NFA: Due to maintenance, the following systems will be unavailable from 8:00 a.m. until 12:00 p.m. CT on Sunday, October 10, 2021: Online Registration System (ORS), BASIC Data Entry, Security Futures Products Training, Online Payments, Online Arbitration Claims, Arbitrator Profile, Arbitrator Training, Employment Application and Profile System, and all Electronic Filings Systems including EasyFile, Exemptions, Annual Questionnaire, and Disclosure Documents. We apologize for any inconvenience.

The FEAST October 2021 newsletter is out.

Candace Adam has joined FIA Tech as head of communications and marketing. Adam is a terrific addition for FIA Tech. I first encountered her when she worked for Deutsche Boerse from 2001 to 2007.

Consolidation is continuing in the niche financial media space courtesy of Markets Media Group. Financial news publisher Markets Media Group (MMG) has acquired DerivSource, the Julia Schieffer-founded independent information source and online community for OTC derivatives professionals globally. Markets Media Group bought Traders Magazine in 2016 and in 2018 it acquired GlobalTrading, based in Hong Kong. — MarketsMedia

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


ICE Exec Gordon Bennett Talks About Market-Based ESG Initiatives

Gordon Bennett, the U.K.-based managing director of utility markets at the Intercontinental Exchange, recently sat down with John Lothian to talk about ESG initiatives, including pricing the cost of carbon and “carbonomics,” the science of identifying specific opportunities to reduce or eliminate greenhouse gas.

Bennett was part of an in-person panel discussion on the topic, “Exchanges and the Roll Out of New Sustainability Products,” at FIA’s IDX 2021 on September 28. “It was great to be back on a (live) panel,” he noted. “It gives you a semblance of normalcy.”

Watch the video »


Chicago’s still the best U.S. city to visit, says Condé Nast Traveler; Despite all its negative press, the city keeps ranking ahead of the likes of New York and Boston.
Katherine Davis – Crain’s Chicago Business
For the fifth year in a row, Chicago was ranked the No. 1 big city in the U.S. by Condé Nast Traveler for its vibrant restaurant scene, museums and architecture. Condé Nast Traveler surveyed more than 800,000 readers on which cities they loved visiting most. Chicago was followed by New York, No. 2; New Orleans, No. 3; and Boston, No. 4.

*****Just don’t stay long enough where you have to pay taxes.~JJL


Coinbase CEO Warns Executives May Burn Out on Too Much Scrutiny
Benjamin Stupples – Bloomberg
Coinbase Global Inc. Chief Executive Officer Brian Armstrong said he’s concerned U.S. business leaders will quit due to the scrutiny they face, making the comments hours after Facebook Inc.’s Mark Zuckerberg publicly defended his company following a series of negative stories.

*****A couple of major exchange executives in Chicago and Atlanta just chortled “wimp.”~JJL


OPM Rule Eases Agency Hiring of Interns; Under regulations slated for publication Wednesday, agencies will be able to hire job candidates still in college to temporary jobs and can eventually convert them to permanent positions.
Erich Wagner – Government Executive
The Office of Personnel Management is issuing regulations to make it easier for federal agencies to pay and offer jobs to their interns who are still in college, implementing provisions of recent laws aimed at improving recruitment of young federal employees.

*****This is huge news for interns and government agencies.~JJL


Students Can Now Earn up to $72,000 Annually, Federal HR Director Says
Erich Wagner –
OPM Director Kiran Ahuja said the federal government is looking to overhaul internships, telling students “we need more of you and your colleagues coming into the federal government.”
Office of Personnel Management Director Kiran Ahuja on Monday encouraged students at George Mason University to consider pursuing a career in the federal government as officials work to revamp hiring and internships and rebuild agency workforces.

***** The U.S. government is like everyone else; they need to be competitive in today’s market.~JJL


Wednesday’s Top Three
Our top story Wednesday was ‘Volmageddon’ Is History as SEC Greenlights Leveraged VIX ETFs, from Bloomberg. Second was MarketWatch’s Wall Street mourns one of stock market’s ‘brightest minds, biggest hearts’ hit by car, about Tobias Levkovich, a prominent Citigroup analyst, who died on Friday at age 60. Third was The next financial crisis is fast approaching, also from MarketWatch.


MarketsWiki Stats
26,626 pages; 235,960 edits
MarketsWiki Statistics


Lead Stories

Deputy Attorney General Lisa O. Monaco Announces National Cryptocurrency Enforcement Team
U.S. Department of Justice
Deputy Attorney General Lisa O. Monaco announced today the creation of a National Cryptocurrency Enforcement Team (NCET), to tackle complex investigations and prosecutions of criminal misuses of cryptocurrency, particularly crimes committed by virtual currency exchanges, mixing and tumbling services, and money laundering infrastructure actors. Under the supervision of Assistant Attorney General Kenneth A. Polite Jr., the NCET will combine s the expertise of the Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), Computer Crime and Intellectual Property Section (CCIPS) and other sections in the division, with experts detailed from U.S. Attorneys’ Offices. The team will also assist in tracing and recovery of assets lost to fraud and extortion, including cryptocurrency payments to ransomware groups.

The ten trillion dollar man: how Larry Fink became king of Wall St; He built BlackRock into the biggest money manager the planet has ever seen. But should one company wield so much power?
Robin Wigglesworth – FT
On April 16 2009, Rob Kapito went to the newly built Yankee Stadium, where the pride of New York was taking on the Cleveland Indians. The economy was in a shambles, after the US mortgage crisis had rocked the global financial system, and many Wall Streeters were desperate for distractions. But the balding former bond trader was not there to watch a game of baseball.

French watchdog chief calls for ban on ‘payment for order flow’ in EU stock market
Huw Jones – Reuters
“Payment for order flow,” a practice critics say has fuelled bouts of frenzied retail share trading on Wall Street, should be banned in the European Union, France’s stock market regulator said on Thursday. In the United States, stockbrokers have touted for business among retail customers by offering zero commission services, with payment coming from sending the orders to a specific wholesale market maker for executing.

Justice Department Sets Up National Cryptocurrency Enforcement Team; Announcement comes as law enforcement and regulators look for ways to disrupt illicit cryptocurrency transactions
Mengqi Sun – WSJ
The U.S. Justice Department is creating a national cryptocurrency enforcement team to tackle investigations and prosecutions of criminal misuses of cryptocurrency and to recover the illicit proceeds from these crimes, Deputy Attorney General Lisa Monaco said Wednesday. The creation of the National Cryptocurrency Enforcement Team, which would be under the supervision of Assistant Attorney General Kenneth Polite Jr., will focus on crimes committed by virtual currency exchanges and mixing and tumbling services, the DOJ said in a statement. The team also would help trace and recover assets lost to fraud and extortion, the DOJ said.

Justice Department announces ‘Cryptocurrency Enforcement Team’ to tackle money laundering and ransomware attacks
Charles Davis – Business Insider
The Department of Justice has formed a new unit to combat “criminal misuses of cryptocurrency,” a move that comes after hackers earlier pocketed millions of dollars
in bitcoin after an attack that paralyzed the largest fuel pipeline in the United States.

Fintech’s Explosive Growth Has Regulators Scrambling; Fueled by venture capital and changes brought by the pandemic, software is coming for your wallet like never before.
Lionel Laurent – Bloomberg
“There are more things in heaven and Earth, Horatio, than are dreamt of in your philosophy,” says Hamlet. The parallel in today’s mobile banking market might be, to quote one startup founder: “There are more financial products for more consumers than you could ever imagine.” Browse potential homes for sale, and Zillow will offer you a mortgage. Buy a pair of sneakers online, you’ll be presented with 16 ways to pay at checkout, from Apple Pay to Klarna. See a stock tip on Reddit, and you can act on it, commission-free, on Robinhood. Should you want to deposit your paycheck directly into cryptocurrency trading app Coinbase, you’ll be able to. (Please don’t.)

Tether’s $69 Billion Mystery: Five Takeaways From Bloomberg Businessweek’s Cover Story; In addition to Chinese commercial paper and crypto-backed loans, there are a lot of colorful characters.
Zeke Faux – Bloomberg
Tether is a stablecoin, a cryptocurrency that’s supposed to be worth $1 because it’s backed by real U.S. dollars. It’s central to the cryptocurrency economy, used by traders to move money from one exchange to another. This summer, because of its exponential growth, it caught the attention of traders on Wall Street and regulators in Washington, who say it’s a risk to the financial system. There are now 69 billion Tethers in circulation, which means the company that issues them should hold a corresponding $69 billion of assets to back them, enough to make it one of the top 50 banks in the U.S.—that is, if it were a U.S. bank and not an unregulated offshore company. But for years, despite the company’s assurances that the money is safe, exactly what’s behind Tether has been a mystery.

Is It Time for Aggregation to Get a Bit Smarter?
Colin Lambert – The FullFX
Aggregation has risen in popularity over the past decade in FX markets, and shows little sign of losing its lustre. It does, however, come with challenges, not least, thanks to the rather blunt approach taken by some liquidity consumers, that LPs can face high competition and diminishing margins.

Over-the-counter trading volume has hit a record $548 billion, soaring past 2020 totals as retail investors pour into the market
Ethan Wu – Business Insider
Over-the-counter stocks, a market segment long dominated by retail investors, are attracting unprecedented levels of interest as the Securities and Exchange Commission looks to clean up the fraud-prone segment. So far this year, $548 billion in trading volume has been registered by OTC Markets Group, which runs the main marketplaces for penny stocks and other unconventional securities, according to company data first reported by the Wall Street Journal

Dimon Says JPMorgan to Review Contracts Amid Debt Limit Impasse
Jennifer Surane – Bloomberg
JPMorgan Chase & Co. will begin a review of all of its contracts on Monday, including those tied to repo markets, as part of preparations for a potential default by the United States government. “We start on Monday,” Chief Executive Officer Jamie Dimon told President Joe Biden at a meeting on Wednesday. “We’re going to start reviewing all our contracts, repo, collateral requirements. There will be huge demands of people selling Treasuries, wanting financing in Treasuries, interest rates will start going up, it will get worse as we get closer to the brink.”

Crowdsourced Quant Backed by Paul Tudor Jones Rides the Crypto Wave
Justina Lee – Bloomberg
Numerai gets new pension allocation for a novel stock strategy; Firm taps amateur finance quants with payment in digital money
As far as Hayden Burgoyne is concerned, picking stock market winners is hardly rocket science. And he should know. Burgoyne is a NASA engineer who spends his days plotting a mission to explore the moons of Jupiter. But at night, the 32-year-old is an amateur quant and part of an online community earning cryptocurrency for their stock-picking prowess.

Robinhood’s Gallagher Slams ‘Nanny State’ Regulatory Overreach
Annie Massa – Bloomberg
Robinhood Markets Inc. legal chief Dan Gallagher said he sees the Securities and Exchange Commission grasping to rein in a thriving online brokerage industry instead of adapting to the ways technology has changed it. “Regulators need to catch up,” Gallagher, a former SEC commissioner, said Wednesday at a Security Traders Association conference. “That’s the way I would — if I was running the place — look at it. Maybe take a look at our old rule book because of these new technologies.”

SEC Commissioner Hester Peirce says it’s a shame regulators aren’t ‘taking up the mantle’ to provide rule on digital currencies
Natasha Dailey – Business Insider
US Securities and Exchange Commissioner Hester Peirce said it’s “disconcerting” the agency has yet to provide regulatory clarity on cryptocurrencies. The Republican commissioner – dubbed “crypto mom” by enthusiasts for her support for the new asset – told Yahoo Finance Live in an interview that she’s been asking for a regulatory framework for three years and the agency “can’t seem to provide any.”

Deutsche Börse Names Digital Asset Strategic Technology Partner for its New Digital Post-trade Platform; Today’s announcement builds on a long-term strategic partnership and shared vision of digitizing financial markets
Digital Asset
Digital Asset today announced that it has been selected by Deutsche Börse, a financial market infrastructure provider, as a long-term strategic technology partner for its new fully digital post trade platform, D7. The new cloud-backed and DLT-ready platform paves the way for same-day-issuance and paperless, automated straight-through processing for the entire value chain of issuance, custody, settlement, and asset servicing for digital securities.

A New Standard for Interest Rate Derivatives
Someone using the then-newly minted interest rate derivatives definitions back in 2006 would only have needed to read 158 pages of the main book to get a clear picture of the terms of their trades. Anyone referencing the 2006 Definitions today would have a somewhat bigger task on their hands. To keep pace with market developments, ISDA has had to publish an extra 586 pages of amendments via nearly 90 different supplements over the past 15 years that require interleaving with the main book, making the job of keeping track of trade terms complex, time-consuming and prone to error. This is clearly not sustainable – which is why this week’s implementation of the new 2021 ISDA Interest Rate Derivatives Definitions is so important.

London Finance Job Postings Set Fresh Record in Third Quarter
Tom Metcalf – Bloomberg
About 8,300 London finance jobs advertised in Q3: recruiter; Recruitment on the rise after Covid-19 froze hiring in 2020
The easing of lockdown in the U.K. is turbocharging the market for London finance jobs, with postings in the third quarter more than double last year’s level.

Gas Market’s Wild Ride Shows Some Machiavellian Traits; The extraordinary surge in futures prices is a dangerous crisis that’s been fueled by Russia and policy mistakes in western Europe.
John Authers – Bloomberg
Jumping Jack Gas Is a Flash Flash Flash
What is happening in the natural gas markets is extraordinary, and it could create serious human hardship. On that we can all agree. Here is how natural gas futures in the U.K. (FN on the chart), Germany (LYA) and the U.S. (NG) have moved over the last five years:

There’s a Shade of Evergrande in the U.K. Energy Crisis; Skewed incentives and weak balance sheets are at the root of the wave of recent supplier failures
Chris Bryant – Bloomberg
Barely a week goes by without a U.K. electricity and gas supplier being toppled by soaring commodity prices. Millions of British customers face an unsettling wait to learn if their power provider will survive, who’ll take over their contract, and whether their energy bills will increase. Britain’s energy regulator Ofgem — the Office of Gas and Electricity Management — has written to those companies still standing demanding urgent information on their finances.

IEA chief says Russia has substantial scope to boost Europe’s gas supplies; Energy agency calls on Moscow to step up as a ‘reliable supplier’
David Sheppard and Max Seddon – FT
The head of the International Energy Agency said Russia has the capacity to send substantially more gas to Europe and alleviate the energy crisis gripping the continent, in an intervention likely to bolster claims that the country is withholding crucial supplies.

Two Sigma Acquires Data Partner Liberty Source; Brad Olson and Jeff Wecker to join Liberty Source Board of Directors
Two Sigma
Two Sigma announced today that it has acquired Liberty Source, an onshore, socially responsible alternative to traditional business process outsourcing (BPO). Liberty Source provides data workflow management services for data-driven organizations and is an established data partner of Two Sigma.

Markets Media Group Purchases DerivSource
Leading U.S.-based digital financial news publisher Markets Media Group (MMG) is pleased to announce the acquisition of DerivSource, the independent information source and online community for OTC derivatives professionals globally. The acquisition of London-based DerivSource, founded by Julia Schieffer, expands Markets Media Group’s rapidly growing footprint by giving it a deep expertise and network in the critical but oft-undercovered asset class of OTC derivatives, spanning trading as well as fintech, regtech and risk.


Sweden, Denmark Halt Moderna’s Covid Shot for Younger People
Charles Daly and Niclas Rolander – Bloomberg
Swedish watchdog cites increased risk of heart inflammation; Countries recommend Pfizer-BioNTech shot as replacement
Sweden and Denmark decided to halt vaccinations with Moderna Inc.’s Covid-19 shot for younger people because of potential side effects. The Swedish health authority Wednesday cited new data on the increased risk of heart inflammation as a reason for the pause for those aged 30 and under. Denmark will stop giving the shot to those younger than 18.

Heart Damage Plagues Covid Survivors a Year After Infection, Study Shows
Jason Gale – Bloomberg
Nearly 1-in-7 ICU survivors suffer excess major heart problems; Covid-19 will exacerbate harm caused by cardiovascular disease
Heart damage from Covid-19 extends well beyond the disease’s initial stages, according to a study that found even people who were never sick enough to need hospitalization are in danger of developing heart failure and deadly blood clots a year later.

Early-Covid Flashbacks From Italy Haunt Vaccine Laggard Romania
Andra Timu and Irina Vilcu – Bloomberg
Romanian officials are concerned that scenes of overflowing Italian hospitals during the initial weeks of the pandemic are becoming the reality in their country. Amid persistent hesitancy at getting jabs, the nation’s 19 million people are the second-least-vaccinated in the European Union and have suffered the bloc’s highest deaths during the past week. About 15,000 new cases a day are being recorded.

Finland Pauses Moderna’s Covid Jab For Younger Men Over Risks
Leo Laikola and Kati Pohjanpalo – Bloomberg
Finland will pause giving Moderna’s Spikevax shots to men under the age of 30 in its inoculation program due to the risk of heart inflammation. Finland’s Institute for Health and Welfare now recommends Pfizer shots for younger men, Mika Salminen, who heads the department for health security, said at a press conference Thursday. If a person has had the first shot with Moderna then the second one can be Pfizer, he said.

Covid revealed what science can do when funding is found; ‘In some ways, the pandemic ought to make us all feel more upbeat about the long-term future of medical research’
Gillian Tett – FT
When Covid-19 hit America in the spring of 2020, Jean Bennett, a professor of biomedicine at the University of Pennsylvania, started killing her prized collection of research mice. One reason was that the lockdown partly shuttered laboratories. Another was that the battle against the virus sucked resources, money and people away from other medical problems such as blindness, which is what Bennett’s team studies.

Moderna plans African factory as vaccine makers battle criticism; Announcement comes while industry fends off claims it has resisted efforts to expand jabs access
Jamie Smyth and Hannah Kuchler – FT
Moderna says it plans to build a messenger RNA manufacturing plant in Africa to produce its Covid-19 vaccine and other jabs as the pharmaceutical industry fends off criticism it has not done enough to immunise the developing world.

Long-Covid Concerns Help Fuel Biden Administration’s Broad Booster Push; Some health officials view wider use of vaccine boosters as way to further reduce risk of long-term Covid-19
Stephanie Armour and Felicia Schwartz – WSJ
Emerging data indicating that a small percentage of vaccinated people develop long-term Covid-19 is helping drive the Biden administration’s push to roll out boosters broadly, according to people familiar with the planning.

Pfizer Asks F.D.A. to Authorize Its Covid-19 Vaccine for Children 5 to 11; The agency has promised to move quickly on the request and has tentatively scheduled a meeting at the end of the month to consider it.
Sharon LaFraniere and Noah Weiland – NY Times
Pfizer and BioNTech said on Thursday morning that they had asked federal regulators to authorize emergency use of their coronavirus vaccine for children ages 5 to 11, a move that could help protect more than 28 million people in the United States.

Covid Protection Wanes Months After Second Shot, Studies Show
Alisa Odenheimer and Robert Langreth – Bloomberg
Results support boosters rolled out in U.S., U.K., Europe; Israel study finds immunity falls first quickly, then slowly
Immunity provided by the Covid-19 vaccine from partners Pfizer Inc. and BioNTech SE weakens significantly within months, with men having less protection than women, according to research that supports the use of booster doses.

Exchanges, OTC and Clearing

Miami International Holdings Reports September 2021 Trading Results, MIAX Pearl Equities Sets New Market Share and Volume Records; SPIKES Futures Volume at Record Levels
Miami International Holdings, Inc.
Miami International Holdings, Inc. today reported September 2021 trading results for its U.S. exchange subsidiaries – MIAX®, MIAX Pearl® and MIAX Emerald® (together, the MIAX Exchange Group™) and the Minneapolis Grain Exchange (MGEX). The total U.S. multi-listed options market share of 14.50% in September 2021 was 79 basis points higher than the 13.71% market share in September 2020 and represented a 5.8% increase.

Blank cheque vehicle lists on Nasdaq to target fibre and tower deals; IX Acquisition one of the first special purpose acquisition companies to focus on communications assets
Nic Fildes – FT
A team of European data centre veterans has raised $200m through a blank cheque company, which aims to scoop up infrastructure including towers and fibre networks as investor interest in the sector booms.

Disruptive Capital Acquisition Company lists on Euronext Amsterdam; SPAC listing raises £125 million;17th SPAC listing on Euronext’s markets in 2021
First SPAC listed and traded on Euronext Amsterdam in Pounds Sterling to benefit UK investors
Euronext today congratulates Disruptive Capital Acquisition Company, a Special Purpose Acquisition Company (SPAC), on its listing on Euronext Amsterdam (ticker code: DCACS). It is the 17th SPAC listing on Euronext markets this year and the first SPAC on Euronext Amsterdam to be listed and traded in Pounds Sterling.

Euronext announces volumes for September 2021
Euronext, the leading pan-European market infrastructure, today announced trading volumes for September 2021.

Eurex Exchange Readiness Newsflash | Reminder regarding EURO STOXX 50® Index Total Return Futures transition of reference Funding Rate to EURSTR flat
With this Newsflash we would like to remind our Members of the transition of the reference funding rate from EURSTR plus 0.085% to EURSTR (flat) on EURO STOXX 50® Index Total Return Futures (TESX), as announced in Eurex Circular 086/21. This implementation comes along with the relevant amendments of the Clearing Conditions and the Contract Specifications which will come into effect as of 18 October 2021 (implementation date).

Deutsche Börse launches next-generation digital post-trading platform
Deutsche Börse
Digital post-trading platform D7 enables continuous processing of electronic securities; Over 80 percent of German securities can be digitized in a central register by mid-2022; paves the way for same-day issuance and paperless, fully automated processing; partners for the market launch are leading German and international financial institutions and technology companies
The international market infrastructure provider Deutsche Börse is planning to introduce a fully digital post-trading platform that complies with regulatory requirements under the name “D7”. This is in line with the recently introduced law for electronic securities in Germany.

ASX Group Monthly Activity Report – September 2021

Cboe Global Markets Announces 2021 Investor Day
Cboe Global Markets, Inc.
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced that it plans to host an Investor Day on Tuesday, November 16, 2021 from 8:30 a.m. to 11:30 a.m. CT at Cboe’s global headquarters in Chicago. Ed Tilly, Chairman, President and CEO, and other members of Cboe’s senior leadership team will host presentations on the company’s operations, strategy and future growth initiatives.

Constituent Change In TOPIX New Index Series
Tokyo Stock Exchange, Inc. (TSE) will make changes to the constituents of the TOPIX New Index Series etc, on October 29, 2021 (after the close of trading on October 28, 2021) as follows. Component stocks of the indices are reviewed and it is conducted annually in October.

Nominating The Tel Aviv Stock Exchange Chairman Of The Board Of Directors
The TASE Board of Directors’ Nominating Committee for the Nomination of the Chairman of the Board of Directors (“the Committee”) is seeking candidates for recommendation to the Board of Directors of TASE to the position of Chairman of the Board of Directors of TASE.

— EBS Market Integration Notice: New and Updated Content — CME
— CME Globex Notices: October 4, 2021 — CME
— CME STP Notices: October 7, 2021 — CME


5 Questions with Jason Perz of Camshaft Capital: From BMX to CTA
Elise Fleischaker – Trading Technologies
Jason Perz, who is a relatively new Commodity Trading Advisor (CTA) with Camshaft Capital, uses TT for trade execution. When Jason was preparing to launch his CTA and looking for a trading platform, he found TT’s robust collection of functionality to be a perfect match for his requirements. Not only does TT incorporate all of the trading tools he needs, but Jason says they’re superior to the other offerings he evaluated. Jason, whose passions include riding BMX bikes professionally, public speaking, and learning all about the ups and downs of both the markets and life, is a great example of how to start from scratch and succeed. We sat down with Jason to learn more about him and his business. You can find him on Twitter at @JasonBoyd138.

MoneyGram Partners With Stellar Development on Blockchain Deal
Matthew Monks – Bloomberg
MoneyGram International Inc. is partnering with a non-profit that oversees a public blockchain to use its technology to speed up money transfers and payments settlements.

Capital Markets Gateway wants to digitize the IPO market
Yahoo Finance
Greg Ingram, Capital Markets Gateway CEO and Co-Founder, joined Yahoo Finance Live to discuss how his company is helping IPOs go digital.

Refinitiv launches Wealth Practice 360 providing wealth management firms and advisors with an integrated view of their book of business; Solution creates a 360 view of the advisor’s business by connecting internal and third-party applications with market data, client data and analytics.
Refinitiv today announces the launch of Wealth Practice 360, a solution designed to provide an efficient workflow and better insights on demand for wealth advisors. Wealth Practice 360 uses a sophisticated set of services that aggregate client information from multiple sources including back-office systems, CRM, financial planning tools, held away assets, and social media activity to deliver a 360 view of an advisor’s book of business.

Barchart and Link Data Services Announce Partnership for Domestic Crude Oil Data
Barchart, a leading provider of data, tools, and software to the global commodity industry, has announced a new distribution partnership with Link Data Services, a pioneer within the domestic and global energy markets providing reliability and transparency through price assessments, commentary, and pricing reports.

Microsoft’s Foray Into Fintech: What Investors Should Know About Redmond’s New Cloud Product
Chris Katje – Benzinga
A leading technology company is pushing into financial services to grow its cloud business. Could this provide upside to the stock? What Happened: Microsoft Corporation (NASDAQ: MSFT) is releasing its Microsoft Cloud for financial services on Nov. 1. “We are releasing new capabilities to help enable retail banks to enhance customer and employee experiences as well as drive loyalty and customer growth,” Microsoft Vice President of Financial Services Bill Borden said.

Broadridge consolidates post-trade solutions following Itiviti and Alpha Omega acquisitions; Following the integration, clients now have direct access to Itiviti’s NYFIX Matching automated trade allocation, confirmation, and affirmation capabilities.
Annabel Smith – The Trade
Broadridge has successfully integrated Itiviti’s post-trade solution into its portfolio, order, and investment management system to offer clients automation in their post-trade workflows. The news comes as part of Broadridge’s ongoing integration of the post-trade solutions acquired through its respective Itiviti and Alpha Omega deals that took place earlier this year.

EliData completes integration between C-RFQ and Xetra EnLight; Through the integration, C-RFQ will help liquidity providers access FIX connectivity.
Wesley Bray – The Trade
EliData has expanded its portfolio through the integration between C-RFQ and the Frankfurt Stock Exchange’s request-for-quote (RFQ) functionality, Xetra EnLight. The functionality is used for off-book trading in the cash market and allows members to execute trades in equities, ETFs and ETPs through a RFQ workflow.


Justice Department to Fine Contractors for Not Reporting Cyber Incidents; False Claims Act will be used to pursue federal contractors that don’t adhere to cybersecurity standards
James Rundle and Kim S. Nash – WSJ
The Justice Department will impose large fines on federal contractors that fail to meet what its second in command said are “required cybersecurity standards,” including the disclosure of cybersecurity breaches.

TSA to impose cybersecurity mandates on railroad and aviation industries
Geneva Sands – CNN
The Transportation Security Administration will impose new cybersecurity mandates on the railroad and airline industries, including reporting requirements as part of a department effort to force compliance in the wake of high-profile cyberattacks on critical industries, Homeland Security Secretary Alejandro Mayorkas announced Wednesday.
DHS is moving to require more companies in critical transportation industries to meet a cybersecurity baseline, chipping away at voluntary cybersecurity incident reporting.

Cybersecurity Awareness Month: Time for your safety check
Bree Fowler – CNet
Cybersecurity Awareness Month! One of October’s many made-up observances — there’s also Bat Appreciation Month and International Walk to School Month — the occasion is a needed, if somewhat artificial, reminder to make sure you’re being cybersmart.
Being cybersmart means setting solid and unique passwords for all your online accounts, enabling two-factor authentication whenever possible and doing your best to keep as much of your private information, well, private.

Top cybersecurity statistics, trends, and facts
Brian Carlson – CSO Online
2021 has been a banner year for cybercriminals, they have taken advantage of the COVID-19 pandemic and the increase in remote work, attacking both technical and social vulnerabilities. This historic increase in cybercrime resulted in everything from financial fraud involving CARES Act stimulus funds and Paycheck Protection Program (PPP) loans to a spike in phishing schemes and bot traffic. Piled on top of that is a growing wave of ransomware and software supply chain attacks.


U.S. CEO of Crypto-Focused Broker Has Regulation on Her Mind
Sophie Alexander – Bloomberg
Lule Demmissie says eToro plans to add equities by year-end; Online firm faces stiff competition from Robinhood, Coinbase
In August, the Israeli brokerage eToro hired Lule Demmissie, a longtime wealth-management director at TD Ameritrade and, more recently, president at Ally Invest, to head its growing presence in the U.S. Demmissie, who moved to the U.S. from Ethiopia when she was a teenager, has a lot on her plate.

SEC Chair Gary Gensler: A Ban on Crypto Would Be ‘Up to Congress’
Responding to whether the SEC had any plans to follow China’s lead in banning cryptocurrency in favor of a prospective central bank digital currency (CBDC), SEC Chair Gary Gensler said Tuesday, “No, that would be up to Congress,” suggesting the agency has no plans to ban crypto. “The Hash” panel discusses the latest development in the U.S. crypto regulatory landscape.

Investing Platform Launches Crypto Trading; The company will offer trading in 10 cryptocurrencies, including bitcoin and dogecoin
Caitlin McCabe – WSJ
The investing platform operated by Public Holdings Inc. is rolling out cryptocurrency trading, joining rivals such as Robinhood Markets Inc. in the digital-currency space. The move marks an expansion for, which launched in 2019. Previously, individual investors who used the platform could trade only U.S.-listed stocks and exchange-traded funds. Unlike competitors including Robinhood, the company doesn’t allow options or margin trading, two strategies considered more risky for investors.


Merkel Dismisses Russian Role in Europe’s Energy Price Crisis
Arne Delfs – Bloomberg
Outgoing German Chancellor Angela Merkel dismissed charges that Russian leader Vladimir Putin is partly to blame for the record spikes in European gas prices.

EU Lawmakers Voice Doubts Over Approval for Nord Stream 2
Ewa Krukowska – Bloomberg
A group of European Union lawmakers questioned the Nord Stream 2 pipeline’s compliance with the bloc’s laws, underscoring tensions over the controversial project to ship Russian gas to Europe amid an unprecedented energy crisis.

Rubio Presses SEC for More Disclosure Rules on China Investments
Daniel Flatley and Ben Bain – Bloomberg
Senator Marco Rubio wants the Securities and Exchange Commission to put one issue front and center in the regulator’s focus on environmental, social and governance issues: China.

Russia Offers to Ease Europe’s Gas Crisis, With Strings Attached
Olga Tanas and Elena Mazneva – Bloomberg
With winter fast approaching and a stunning energy price surge pummeling Europe, Russian President Vladimir Putin chose an opportune moment to use his country’s leverage as an oil and gas superpower.

The Debt Limit Deserves to Die; It serves no purpose other than to create drama and risk.
Mark Gongloff – Bloomberg
It’s a Trap!
A common trope in bad entertainment is the Idiot Plot, which Roger Ebert once described as “any plot that would be resolved in five minutes if everyone in the story were not an idiot.” The tedious drama around the debt ceiling is an example.

Biden administration wants IRS to monitor people’s bank accounts more closely — will it catch tax cheats, or invade privacy?
Andrew Keshner – MarketWatch
In the ongoing debate over tax hikes for the rich and multi-trillion dollar government spending on the social safety net, a much smaller dollar amount is catching a lot of attention. A Biden administration proposal calls for Internal Revenue Service monitoring of people’s accounts to kick in at the $600 mark.

U.K. Calls France ‘Unreasonable’ Over Brexit Energy Threat
Joe Mayes – Bloomberg
Brexit minister Frost hits back at French electricity pressure; France’s Beaune raises prospect of retaliation over fishing
The U.K. hit back at France over its threat to Britain’s electricity supplies in a dispute over fishing, escalating post-Brexit tensions between the two countries. France is “unreasonable” to suggest Britain is not respecting their post-Brexit accord on fish, Brexit minister David Frost said Tuesday. Earlier, a French minister highlighted the U.K.’s reliance on France for its energy supply, suggesting it could be leveraged as a means of retaliation in their dispute over access to British fishing waters.

The souring of the Anglo-French relationship; Brexit and the struggles to implement it have left a bitter taste on both sides of the Channel
Victor Mallet and George Parker – FT
When last month’s “Aukus” defence deal between Canberra, London and Washington sank France’s plans to sell submarines to Australia and enraged the French, UK prime minister Boris Johnson insisted it was nothing for Paris to worry about. “Our love of France is ineradicable,” he said.


‘I found a flaw in your system, and I took advantage of it.’ Florida man filed 745 tax returns in 4 years, collecting $235K in bogus refunds
Lukas I. Alpert – MarketWatch
Tax preparer Damian Barrett has been sentenced to 4½ years in prison for using client info to steer refunds to accounts he controlled.

SEC Considers Crackdown on Complex ETFs
Evie Liu – Barron’s
The Securities and Exchange Commission will consider tougher rules for “complex” exchange-traded products – – such as leveraged and inverse funds – – that might pose risks to retail investors and the broader financial market, SEC Chair Gary Gensler said in a statement.

CFTC Orders ICE Clear Europe Limited to Pay a $450,000 Civil Monetary Penalty for Violating Customer Protection Regulations
The Commodity Futures Trading Commission today issued an order simultaneously filing and settling charges against ICE Clear Europe Limited (ICEU) for violating regulations requiring derivatives clearing organizations (DCOs) to obtain written acknowledgment letters from a depository. Acknowledgment letters state that the depository was informed that funds deposited are customer funds being held in accordance with the Commodity Exchange Act (CEA) and restrict the use of such funds, among other things. The order requires ICEU to pay a $450,000 civil monetary penalty and to cease and desist from any further violations of the CFTC regulations, as charged.

NatWest pleads guilty to failing to stop alleged money laundering; Bank could face £340m fine as FCA uses criminal powers to prosecute lender
Jane Croft and Stephen Morris – FT
NatWest pleaded guilty to failing to prevent alleged money laundering in a London court on Thursday and could face a £340m fine. The bank, which is being criminally prosecuted by the Financial Conduct Authority, had been charged with three counts of failing to comply with anti-money laundering rules in the first attempted prosecution of a UK bank under the law.

SEC head Gary Gensler under fire over crypto regulation; Senior Republican claims chair oversteps authority in seeking more oversight of digital coins
Kiran Stacey and Stefania Palma – FT
A senior Republican has hit out at Gary Gensler, the chair of the Securities and Exchange Commission, over his attempts to regulate cryptocurrencies, as its defenders increase their opposition to several regulatory proposals.

FINRA Requests Comment on Proposed Order Routing Disclosure Requirements for OTC Equity Securities and Potential Steps to Facilitate Investor Access to Current Order Routing Disclosures for NMS Securities
Comment Period Expires: December 6, 2021
FINRA requests comment on a proposal to require members to publish quarterly order routing disclosure reports for held orders in OTC Equity Securities. The proposed new quarterly reports would be similar to those required for NMS stocks under the Securities and Exchange Commission’s (SEC) Rule 606(a) of Regulation NMS, with certain modifications reflecting the different structure of the OTC market. FINRA also requests input on possible steps to further facilitate investor access and understanding of current order routing disclosures for NMS securities.

NatWest Plc pleads guilty in criminal proceedings
Today, National Westminster Bank Plc (NatWest) entered guilty pleas at Westminster Magistrates’ Court to criminal charges brought by the Financial Conduct Authority (FCA) under the Money Laundering Regulations 2007 (MLR 2007).

Investing and Trading

The Stock Market Hasn’t Been This Frenetic Since Early in the Pandemic
Lu Wang – Bloomberg
S&P 500 alternates between big gains and losses for four days; Volatility, driven by macro uncertainty, testing dip buyers
Pick a direction, and don’t go with it. That’s the story in stocks of late, with the S&P 500 alternating between gains and losses of at least 1% for four straight sessions — the longest stretch since June 2020. It’s the same in fixed income, with 10-year Treasury yields swinging wildly around 1.5%.

Why Not Trade All Night? Also an Ozy lawsuit, Robinhood vs. the SEC, awkward text messages and Shiba Inus.
Matt Levine – Bloomberg
The basic situation of U.S. equity market structure is: Big institutional investors want to be able to buy or sell large chunks of stock quickly without moving the price. The best way to do this is to coordinate around liquidity: If I want to buy, I want to buy when everyone else is selling; if we all pick one 15-minute period to do our trading, there will be lots of buyers and lots of sellers and we’ll all be able to do big trades at a fair market price.

The naked truth on naked shorting
Thornton McEnery – MarketWatch
“Naked shorting”? “Failures to deliver”? Even a cursory trip through WallStreetBets and other retail investing social media boards will yield multiple references to phrases like “failures-to-deliver” and “naked shorting” with most of those comments linked to the widely-held theory that short-selling chicanery by hedge funds and other institutional traders is the major reason that stocks like GameStop GME, -0.64%, AMC Entertainment AMC, -0.62% and others remain so volatile.

The Electricity Crisis Was Not Caused By A ‘Perfect Storm’
Recent news from the global electricity sector looks grim. South Americans, heavily dependent on hydroelectricity, face drought-induced scarcity. Hard to believe in a continent laced by three enormous river systems. The alternatives for South American electricity users are an increased reliance on fossil fuels or turning off the lights (conservation). And unlike relatively inexpensive hydroelectricity, generating electricity with fossil fuels (apart from the ecological consequences) incurs fuel expense, which raises prices.

A New Database Could Make It Easier to Successfully Invest in Art; An art world insider is monetizing 25 years of buyer information.
James Tarmy – Bloomberg
Josh Baer, the author of the art industry newsletter, the Baer Faxt, has spent the past 25 years jotting down who bought what at auction, and who tried to buy art but was outbid. “As an adviser or dealer, that information is key,” says Baer, who also works as a dealer and adviser. “And all of this data is something I published in the Baer Faxt.”

US government bond market specialists warn of fragility in Fed pullout; Concerns remain over gaps in liquidity after weak supports during pandemic-induced instability
Kate Duguid – FT
US government bond specialists are starting to fret over how the world’s most important market will cope when the Federal Reserve pulls back its pandemic-era support. The $22tn Treasuries market forms the basis for pricing other assets around the world. It is famed for its liquidity — a broad term meaning it is easy to hop in and out of trades. But on several occasions since Covid-19 first hit, gaps in liquidity have appeared, creating jerky price movements.

Environmental, Social and Corporate Governance

Perdue Farms Wants to Get More Chickens Outdoors With Solar-Powered Houses
Michael Hirtzer – Bloomberg
Company tests mobile coops that move birds to fresh pastures; Producers are confronting growing demand for sustainable meat
Perdue Farms is testing technology that could make raising chickens outdoors easier, with rolling, solar-powered houses that bring birds to fresh pastures every day.

Russia Considers Unveiling 2060 Net-Zero Goal at COP26 Talks
Ilya Arkhipov and Andrey Biryukov – Bloomberg
Nation ratified 2015 Paris accord only two years ago; The country may target 79% emissions reduction by 2050
Russia could come to global climate talks in Glasgow, Scotland, in November with a 2060 goal of carbon neutrality, marking a reversal in President Vladimir Putin’s stance on climate change.

U.S. Coal Mines Are Running Out of Miners Just as Demand Booms
Will Wade – Bloomberg
Just when the world is clamoring for more coal, U.S. suppliers are facing a shortage of miners. The number of coal miners in the U.S. has been sliding for years, and is down about 8.6% from before the pandemic. People who have left are reluctant to come back and young people are even more wary about taking a job in an industry that they’ve consistently been told has no future given the global push toward clean energy.

UAE Sets 2050 Net-Zero Goal, First Among Major Gulf Petrostates
Akshat Rathi – Bloomberg
Country won’t have to end oil and gas exports to meet target; Target will likely go down well with the U.S., EU and U.K.
The United Arab Emirates has become the first of the Persian Gulf’s petrostates to commit to eliminating planet-warming emissions within its borders.


Cathie Wood to Move Investment Manager ARK to Florida
Michael Wursthorn – WSJ
The asset-management firm plans to close its New York headquarters this month and relocate to the Sunshine State.

Credit Suisse to Front Some Greensill Fund Recovery Costs
Lucca De Paoli and Marion Halftermeyer – Bloomberg
Bank estimates costs of $145 million in 2021 to recover cash; Lender says it will seek to recoup costs when appropriate
Credit Suisse Group AG said it will front “as much as possible” of the legal and advisory costs to recover cash for investors in supply-chain finance funds it ran with the now-defunct Greensill Capital.

Credit Suisse prioritises risk management with new board appointments following Archegos fallout; New members of the board of directors will be focused on risk management processes at the bank following its massive losses caused by the collapse of the family office earlier this year.
Annabel Smith – The Trade
Credit Suisse’s shareholders have almost unanimously approved the appointment of two new risk-focused members of its board of directors. Axel Lehmann has been appointed to the board alongside becoming the new chair of the risk committee at the bank, replacing Richard Meddings who has been holding the position on an interim basis.

BlackRock to give clients the right to vote; Direct voting at AGMs is first step by major asset manager to give ultimate owners of votes the power to use them
Michael Mackenzie and Attracta Mooney – FT
The world’s largest asset manager is set to allow big pension funds and other sophisticated institutional clients to directly vote on issues from executive pay to climate change at annual meetings in a move BlackRock says will apply to nearly half of the $4.8tn of index equity assets it currently manages.


Shock Default in China Has Investors Eyeing Repayment Dates
Rebecca Choong Wilkins – Bloomberg
Fantasia failed to repay $205.7 million bond as sector cools; Upcoming developer bond deadlines include Oct. 15 for Xinyuan
China’s property industry has suffered its first default on a dollar bond since China Evergrande Group sank deeper into crisis in recent weeks, fueling investor concerns over other highly leveraged borrowers and about global contagion.

Zimbabwe Cracks Down on Black Market as Currency Plunges
Ray Ndlovu – Bloomberg
Offenders barred from accessing financial services for 2 year; Zimbabwe dollar falls on parrallel market, stoking inflation
Zimbabwean authorities are arresting informal currency traders who they blame for fueling the latest collapse of the local unit on the black market. The arrests come four days after Vice President Constantino Chiwenga warned the traders that their activities were undermining government efforts to revive the economy. Seventy-seven offenders have been arrested since Sept. 28 and barred from accessing any financial services for two years with immediate effect.

Goldman Alum Takes Team, Assets to Chase Africa’s Unicorns
Loni Prinsloo and Ruth Olurounbi – Bloomberg
Juven expects several of its investments to be IPO candidates; Goldman agreed to sell certain Africa assets to Juven
Jules Frebault, who formerly headed Goldman Sachs Group Inc.’s principal Africa investing group, has left with some of his team and assets to pursue deals on the continent under a new vehicle dubbed Juven.

Denmark May Seek Settlements in $2 Billion Dividend Tax Case
Frances Schwartzkopff – Bloomberg
Denmark may be prepared to negotiate further settlements with defendants alleged to have illegally gained access to $2 billion in dividend tax refunds. Lawyers for the Danish Tax Agency said in the U.S. District Court for the Southern District of New York on Tuesday that they’ve developed a framework for reaching agreements with defendants, after already settling with 80 parties. The comments followed a plea to the judge from a defense attorney, who said some of his clients are running out of money.

Coal Crisis Leaves India With Few Options to Avoid Power Crunch
Saket Sundria, Rajesh Kumar Singh and Debjit Chakraborty – Bloomberg
India is grappling with an escalating crisis as stockpiles of coal, the fuel used to generate about 70% of the nation’s electricity, dwindle to the lowest in years just as power demand is set to surge.

PBOC Adviser Calls for Giving Migrants Same Status as Locals to Boost Spending
Tom Hancock – Bloomberg
Granting ‘hukou’ status to migrants could boost spending 30%; Expanding middle-income group part of ‘common prosperity’ plan
Providing migrant workers in Chinese cities with full access to local government services would boost their consumption by as much as 30% and help China double its middle-income population, an adviser to China’s central bank said.

U.K. Sees More Energy Suppliers Failing in Volatile Markets
Rachel Morison – Bloomberg
Customers need protection from price swings, Kwarteng says; Volatile gas underlines need to move away from fossil fuels
More energy suppliers are likely to collapse as a result of the recent extreme volatility in gas markets, the latest sign that the crisis in the U.K. is worsening.

Japan’s New Finance Minister Stresses FX Stability Is Vital
Yuko Takeo and Grace Huang – Bloomberg
Suzuki pledges to watch foreign exchange markets closely; The remarks suggest continuity with prior governments
Japan’s new finance minister Shunichi Suzuki, in his first remarks on currencies since taking the post this week, provided strong assurance to investors that he’ll pursue continuity in the nation’s currency policy.

Evergrande shareholder to delist in Hong Kong as contagion hits stock; Family of tycoon Joseph Lau will take Chinese Estates private to reduce exposure to indebted developer
Thomas Hale and Primrose Riordan – FT
Chinese Estates Holding, a Hong Kong-based property group, has announced an offer to take the business private after its exposure to heavily indebted developer China Evergrande crushed its share price.


MIT’s ‘Beer Game’ Shows Humans Are Weakest Link in Supply Chains; MBA students are taught to suppress their panic-buying impulses in order to come out on top.
Brendan Murphy, Enda Curran – Bloomberg
Prospects that the world’s snarled supply chains may become less tangled were dealt a setback last month when a couple of MIT students bought 10,000 cases of beer. The purchase order wasn’t real. It was part of a role-playing exercise called the Beer Game that’s something of a rite of passage for first-year MBA students at the prestigious Sloan School of Management. Created in the 1960s, it models the supply-and-demand dynamics among a brewery, distributor, wholesaler, and retailer. At the Sept. 24 game, held at a Marriott in Cambridge, Mass., Team Bemba got nervous, made the big buy, and amassed $213,000 in make-believe carrying costs.

How to not become an Old Bore; ‘As I steam towards superannuation I’m making plans to handle it better’
Simon Kuper – FT
At every age, I have planned my next life-stage by looking at men a few years older than me and trying not to become like them. (Women tend to respond differently to life, so I’ve found them less useful as negative role models.) In my twenties I listened to men in their thirties bang on about mortgages and the difficulty of finding good builders in London. In my thirties I watched male mediocrities conclude they were God because Buggins had retired and they had been given a position of power — or at least a newspaper column.


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