Deutsche Bank looks to escape a decade of scandal and strife

May 17, 2022

First Read

Hits & Takes
John Lothian & JLN Staff

Back in June 2019, the Kilt Challenge sporran was passed on to Pat Kenny, the “Most Interesting Man in the World.” Since then, there have been no IDX gala dinners held for the Kilt Challenge to take place. Well, that is not the case this year. On June 8, on the last day of IDX the gala will be held and Pat will be present wearing the full regalia of a Scottish Highlander. There is even a sporran that is passed on from year to year.

This tradition was created when former FT journalist Jeremy Grant was challenged by some public relations friends to wear a kilt to the dinner and who pledged donations if he did. His first move upon receiving the donations, even before leaving the London cab where he received them, was to call me and ask for some publicity for the spontaneous fundraising drive.

Upon a successful fundraising kilt challenge, he passed on the challenge to me for the next year and so began this regular element of the IDX Gala fundraising for Futures for Kids

Would you help Pat help Futures for Kids by supporting him in the Kilt Challenge? I will be in London for IDX and at the Gala and promise to report back to you how he met the challenge, including whether he is the first Kilt Challenger to do the splits in a kilt. Talk about being kilt. CLICK HERE to make a donation to the Kilt Challenge.

Smarter Markets presented by Abaxx has a new podcast series titled “Systems at Risk” and their first guest on episode one was Walt Lukken, President and CEO of the Futures Industry Association. You can listen to the podcast and see the other episodes HERE.

The Wall Street Journal has a story saying that Elon Musk is demanding that Twitter come clean on how many fake accounts it has before he proceeds with his planned purchase of the company. In response, the @ThisisnotElonMusk account on Twitter asked Mr. Musk to prove he had the financing to take Tesla private.

The U.S. Congress is going to hold hearings on unidentified flying objects, or UFOs, for the first time in 50 years, the Wall Street Journal reported. The first witness they should call should be Randy Quaid.

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


Trading Technologies CEO Keith Todd Had Plenty to Announce at FIA Boca 2022 and Expects Even More Later This Year

Keith Todd, the CEO of Trading Technologies, spoke with John Lothian News at FIA Boca 2022, where TT made two important announcements.

The first announcement was the KRM-22 risk suite TT added to its platform, which Todd said extends the platform’s risk capability and will be very well received by the community.

Second was TT’s acquisition of RCM-X, a technology provider of algorithmic execution strategies and quantitative trading products, which TT announced on the first day of the conference.

Watch the video »


FIA’s International Derivatives Expo is returning to The Brewery in London this coming 6-8 June. Standing still is not an option in today’s evolving cleared derivatives environment. Without adapting to new products, processes, technologies and regulations, your business won’t meet the needs of tomorrow’s industry. We’re bringing together industry leaders, vendors and policymakers to discuss what’s “now” in derivatives, and what lies ahead. Sign up here.


McDonald’s Exit From Russia Ends a Hopeful Era; If the 1990 opening in Pushkin Square was a symbol of hope, Monday’s exit announcement is confirmation that Russia is now not just uninvestible, but intolerable.
Therese Raphael – Bloomberg
When the first golden arches appeared in Moscow’s Pushkin Square in 1990, it didn’t matter that it was mid-winter. It was as if the snow in Narnia had begun to melt, and the natural state of things was being returned in glorious technicolor. Russians queued around the corner for a taste of once forbidden patties. “If you can’t go to America, come to McDonald’s in Moscow,” ran a McD’s ad. Soon other global brands piled in and dotted streetscapes with their logos and storefronts. The country of Potemkin imported many such familiar façades that were effective in conferring a kind of legitimacy to its government. Whether it was McDonald’s or Hugo Boss, such frontages suggested a country hip to modernity.

****** You can forget that Happy Meal. And forget any toy. There is no hope of even getting the sauce you wanted on your Sawdust McNuggets.~JJL


World’s Top Enabler of Financial Secrecy Is the United States; Most G-7 countries slow progress on transparency, index shows; $10 trillion of wealth is held offshore globally, report says
Damian Shepherd – Bloomberg
For individuals looking to hide their wealth, there’s no country more helpful than the United States. That’s according to research by the Tax Justice Network, which ranked countries by the extent their financial and legal systems help people and entities conceal ownership of assets. According to this measure, the US has increased its supply of financial secrecy to the world by almost a third since 2020, earning it the worst rating since rankings began in 2009.

*****Actually, the U.S. is just the world’s top “enabler, period.” It does not matter the subject. ~JJL


Investors pull $7bn from Tether as stablecoin jitters intensify; Tether’s market value falls 9% after stablecoin briefly lost peg against US dollar
Scott Chipolina – FT
Traders have yanked $7bn from Tether since the world’s biggest stablecoin last week briefly lost its peg against the US dollar, intensifying concerns about the assets that underpin the global cryptocurrency market. Tether’s market value has fallen by 9 per cent since May 12 to $76bn as tokens have been removed from circulation to meet redemption requests, CryptoCompare data show. The decline came after Tether last Thursday traded at about 95 cents, well below the $1 level it seeks to maintain following the failure of a smaller rival.

****** Today there are better places for your money than stablecoins that lack transparcency. Just saying. ~JJL


New York mayor urges Jamie Dimon to ride subway to work; Eric Adams calls on city’s business leaders to lead ‘from the front’ in back-to-office push
Joshua Chaffin – FT
Mayor Eric Adams is urging JPMorgan chief executive Jamie Dimon and other New York City business leaders to ride the subway to work as he intensifies a campaign to bring employees back to Manhattan’s empty offices. “We’re telling our corporate leaders: ‘Hey, get on the train!'” Adams said in an interview with the Financial Times. “We need to advertise that New York is back.” Only about 40 per cent of workers have returned to New York City offices in spite of repeated exhortations from the mayor, posing a dire threat to the city’s economic livelihood. Surveys conducted by the Partnership for New York City, a leading employers’ group, have found that fear of a crime-plagued subway is the overwhelming obstacle preventing workers from returning

****** I did not know that black town cars could run on the subway tracks.~JJL


This Is No Time to Go Wobbly on Russia; Appeasing Putin has cost the free world dearly. We have an opportunity to rediscover our values.
Garry Kasparov – WSJ
Vladimir Putin’s war on Ukraine has again been scaled back amid courageous Ukrainian resistance and international support in the form of weapons, financial aid and sanctions against Russia, Mr. Putin and his oligarch mafia. As pleased as I am by this, it’s hard not to be wistful about what might have been—and how many lives would have been saved—had such actions been taken to deter Mr. Putin years ago.

******Chessmaster Kasparov has a unique perspective on Putin’s moves.~JJL


Monday’s Top Three
Getting the most clicks on Monday was the sad news about the passing of Carl Gilmore. Our second most read piece was our MarketsWiki entry on the new Cboe position of Elena Patimova. The emperor’s clothes theme placed third with The New York Times take on Sam Bankman-Fried A Crypto Emperor’s Vision: No Pants, His Rules.


MarketsWiki Stats
26,832 pages; 238,504 edits
MarketsWiki Statistics


Lead Stories

Deutsche Bank looks to escape a decade of scandal and strife; For Paul Achleitner’s successor the priority will be restoring the financial health of the German lender ahead of a round of European banking mergers
Olaf Storbeck – FT
After a decade of scandal shaped by billions of euros in losses, a flurry of misconduct and compliance cases and boardroom battles it looked — just for a few hours at the end of April — as if the outgoing Deutsche Bank chair Paul Achleitner was going to leave on a high. Germany’s largest lender had just completed its first share buyback programme in 16 years, which was intended to mark a return to normality. And two days later, on April 27, Deutsche announced its highest quarterly profit in almost a decade — EUR1.2bn. In another positive sign, the profits were driven by not just its investment bank arm but also by the corporate bank and retail units that had long been lacklustre.

Fight Brews Over Cost of SEC Climate-Change Rules; Investors are demanding the environmental-impact data but companies balk at their expense under the plan
Jean Eaglesham, Paul Kiernan – WSJ
The cost of proposed rules on climate disclosure is emerging as a key battleground as businesses and politicians fight over a plan to require companies to tally their impact on the environment and the risks they face from climate change. The Securities and Exchange Commission estimates the plan will raise the cost to businesses to comply with its disclosure rules from $3.9 billion to $10.2 billion. The leap in expense equates to an ongoing additional cost of $420,000 a year on average for a publicly listed small company and $530,000 a year for a bigger firm, the SEC said.

SEC Official Decries Delay Tactics Used by Some Defense Lawyers; Gurbir Grewal, director of the agency’s enforcement division, called out what he described as ‘gamesmanship’ by some corporate lawyers
Dylan Tokar – WSJ
A senior U.S. Securities and Exchange Commission official called on lawyers to work more cooperatively with the agency, saying regulators have seen recent incidents in which the defense counsel for public companies had used delay tactics to stymie investigations. The remarks by Gurbir Grewal, director of the SEC’s enforcement division, were a rare rebuke of the corporate defense bar, some of whom previously served as staff attorneys for the regulato

Terra Hasn’t Killed Crypto, But It Was a Narrow Escape
Emily Nicolle – Bloomberg
In a tumble starting on May 9, Terraform Labs’ TerraUSD — a token that primarily uses algorithms, rather than collateral, to adjust its supply and maintain a 1-to-1 peg with the US dollar — and its digital coin counterpart Luna lost almost all their value, while activity on the underlying Terra blockchain was twice suspended. A month after reaching a record of $119, the price of Luna now trades at near zero, while UST is stuck around 20 cents.

Yellen Calls for Marshall Plan for Ukraine to Meet Massive Need; Money pledged so far won’t meet short-term requirement: Yellen; US Treasury chief speaks on tour of Europe to attend G-7 meet
Christopher Condon and Chris Anstey – Bloomberg
US Treasury Secretary Janet Yellen issued a call for large-scale economic assistance to Ukraine, warning that the amounts of help pledged to date won’t even meet short-term needs as the nation struggles with the devastation wrought by Russia’s invasion.

China Stops Reporting Bond Trades by Foreigners After Selloff; Figures withheld after record net sales of sovereign debt; China’s Covid lockdowns have fueled market turbulence
Bloomberg News
China’s main bond trading platform for foreign investors has quietly stopped providing data on their transactions, a move that may heighten concerns about transparency in the nation’s $20 trillion debt market after record outflows. Daily trades by overseas investors were last provided for May 11 by the China Foreign Exchange Trade System, according to people familiar with the matter, who asked not to be identified discussing private information. The data showed sizable net foreign outflows that day, with some selling also seen for most days in April, the people said.

India Tweaks Wheat Ban to Let Trade Meet Some Commitments; Wheat registered with customs before ban order now allowed; India approves wheat consignment of 61,500 tons for Egypt
Shruti Srivastava and Pratik Parija – Bloomberg
India is allowing “some relaxation” of its order restricting wheat exports to allow traders to meet prior commitments, according to the trade ministry. Futures fell as much as 3.8% in Chicago before paring losses. Wheat consignments that have been handed over to customs for examination, and registered in their systems on or before May 13, will be cleared for export, the ministry said in a statement. The government has also given the green light for a 61,500-ton shipment to sail from Kandla port to Egypt following a request from that government, it said.

Financial support for Ukraine falling short, says Janet Yellen; US Treasury secretary says commitments from countries and multilateral lenders are inadequate and need to be stepped up
Sam Fleming and Andy Bounds – FT
Ukraine’s partners urgently need to advance fresh funding to plug the country’s financing gap after existing commitments fell short of what is needed, two top policymakers have warned. Janet Yellen, the US Treasury secretary, said the commitments from countries and multilateral lenders announced to date were inadequate, as she urged governments to step up their assistance. “Ukraine’s immediate financing needs are significant,” she told a conference in Brussels.

Michael Bloomberg Plans a $242 Million Investment in Clean Energy; The billionaire and former mayor of New York City will fund programs in 10 developing countries.
Maggie Astor – NY Times
Michael R. Bloomberg, the former mayor of New York City, will announce a $242 million effort on Tuesday to promote clean energy in 10 developing countries. The investment is part of Mr. Bloomberg’s push, announced last year, to shut down coal production in 25 countries and builds on his $500 million campaign to close every coal-fired power plant in the United States. The announcement is tied to a gathering this week in Rwanda hosted by Sustainable Energy for All, an international group working to increase access to electricity in the global south.

Ukraine Invasion

The Ukraine war is creating a jobs crisis in Russia
Samanth Subramanian – Quartz
As companies flee Russia, their Russian employees are seeing their jobs suddenly vanish. Tens of thousands of such employees will be cut loose into an economy where inflation is at a 20-year-high, and where diverse, flourishing jobs were hard to find even before the Ukraine war. McDonald’s leaves behind fast-food workers: 62,000 of them, across 850 restaurants. (They will continue to be paid until the outlets are sold to a local buyer, the company said.) Renault employed 45,000 people in Russia. Ikea’s 15,000 staff will be paid only until the end of August. Siemens had 3,000 people on its rolls in Russia, until it left the country in mid-May. Blue-collar and white-collar workers alike are joining the unemployed in a fast-building jobs crisis.

Russia to permanently ‘decouple’ with west on energy, gas producers say; Chevron and Woodside executives predict Moscow’s exclusion will benefit US and Australian producers
James Fernyhough – FT
Russia will probably be permanently shut out of the global energy market once Europe weans itself off the country’s oil and gas, according to executives of energy producers Chevron and Woodside Petroleum, in a boost for rivals in the US and Australia. European nations are seeking new sources of oil and gas after Russian president Vladimir Putin’s troops invaded Ukraine on February 24. The EU has promised to cut Russian gas imports by two-thirds by the end of the year and has also proposed banning all oil imports from Russia. The country supplied about a third of the EU’s gas in 2021, according to the International Energy Agency.

Can Russia be made to pay for Ukraine? Cost of reconstruction prompts western officials to look to Moscow’s frozen central bank reserves despite obstacles
Sam Fleming, Joseph Cotterill, James Politi and Robin Wigglesworth – FT
When US Treasury secretary Janet Yellen meets her counterparts in Brussels on Tuesday, one big topic for discussion will be how to fund a country battered by war. While the immediate concern is covering Ukraine’s short-term financing needs, officials are also increasingly worried about a reconstruction bill that is heading above half a trillion euros.

Fund managers have obligations to investors amid war in Ukraine, says ESMA; The securities market regulator plans to improve investor protection and convergence, while providing guidance to fund managers.
Wesley Bray – The Trade
The European Securities and Markets Authority (ESMA) has released a public statement on the implications of Russia’s invasion of Ukraine on investment fund portfolios. ESMA stated that it recognises the human cost of Russia’s military aggression against Ukraine, as well as the major challenges that the invasion poses to business activity and the global economic and financial system.

Exchanges, OTC and Clearing

OTC Production Advisory – Decommissioning the FX Settlement Price Files
CME Group
Please be advised that CME is removing all OTC FX Settlement Price files in Production on May 23, 2022. This change has been in live New Release since April 25. FX clearing members and vendors can source the settlement prices from the FX Trade Register.

Fixed-Income Futures: Reactivation of intra-day non-disclosure limits
Eurex Circular 052/22 Fixed-Income Futures: Reactivation of intra-day non-disclosure limits
The Management Board of Eurex Deutschland decided, with effect from 20 May 2022, to reactivate the intra-day non-disclosure limits for transactions in Fixed-Income Futures entered via the T7 Entry Services (TES) or Eurex EnLight.

Amendments to Transaction Size Limits
Eurex Circular 053/22 T7 Release 10.1: Amendments to Transaction Size Limits
In the context of the launch of T7 Release 10.1 and due to Participants’ feedback, Eurex Frankfurt AG revised the Transaction Size Limits (TSLs) defined by Eurex Exchange.

Additional practice session for rolling out the submission functions of the Electronic Communication Platform 2.0 (ecp 2.0)
Exchange Participants (EPs) are requested to note that majority of EPs have successfully completed the mandatory Practice Session (PS1) for rolling out the submission functions of the Electronic Communication Platform 2.0 (ECP 2.0) on 14 May 2022 (Saturday) (Ref. No: CT/039/22). In order to ensure a smooth rollout, the Exchange will arrange an additional Practice Session (PS2) on 21 May 2022 (Saturday) for EPs to further verify their readiness for submission functions rollout.

Intercontinental Exchange Announces Results from 2022 Annual Meeting of Stockholders
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, today announced the results of the Company’s 2022 Annual Meeting of Stockholders, which was held Friday, May 13. A replay of the meeting is available at Each of the ten director nominees received a majority of the votes cast “for” their election. Each director was elected to a one-year term. Stockholders approved an advisory executive compensation vote, with a majority of the votes cast “for” the proposal. Stockholders approved the Intercontinental Exchange, Inc. 2022 Omnibus Employee Incentive Plan, with a majority of the votes cast “for” the proposal.

ICE Announces Update on Divestment of Euroclear Stake
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, today announced an update on the divestment of its 9.85% stake in Euroclear, the Brussels-based provider of post-trade security settlement, custody, and collateral management

Daily Price Limits to be Broadened : 1 issue
The following issue has fallen under the following (1) or (2) for two consecutive business days. As such, TSE wishes to bring to your attention that it will broaden only the upper (or lower) daily price limit on the next business day (May 18) as follows.

Nasdaq Launches Digital Education Program to Increase Knowledge of Equity Derivatives
Nasdaq Derivatives Academy is a digital learning program aimed toward a multitude of investor groups
Next step in Nasdaq’s efforts to educate investors and increase financial literacy
Nasdaq (Nasdaq: NDAQ) today announced the launch of Nasdaq Derivatives Academy in the Nordics. The set of training programs, developed for Nasdaq by leading educational partners, addresses the growing interest among both investment professionals and retail investors to utilize equity derivatives and aims to increase knowledge about the opportunities and risks associated with trading the asset.

NYSE Pillar Options: Updates Available for Testing, May 19th Webcast
Updates Available for Testing
On May 16th, 2022, the previously announced additional requested system enhancements will be available for testing in the Certification environment In preparation for NYSE Arca Options’ migration to NYSE Pillar, which begins on Monday, July 11th, 2022.

NYSE US Exchanges to Close in Observance of Memorial Day
In observance of Memorial Day, the New York Stock Exchange, NYSE American Equities, NYSE Arca Equities, NYSE Chicago, NYSE National, NYSE American Options, NYSE Arca Options, and NYSE Bonds markets will be closed on Monday, May 30, 2022.

The Shanghai International Energy Exchange released the Notice of the Shanghai International Energy Exchange Regarding the Postponed Adjustments to the Delivery Unit of TSR 20 Futures as follows:
All members,
The Shanghai International Energy Exchange has decided to postpone the adjustments to the delivery unit of TSR 20 futures, originally intended to be implemented from June 1, 2022 (i.e., during the continuous trading session on May 31), to the first trading day in May, 2023. The revised TSR 20 Futures Contact of the Shanghai International Energy Exchange, Risk Management Rules of the Shanghai International Energy Exchange, and Delivery Rules of the Shanghai International Energy Exchange, issued on November 26, 2021, will come into effect from the first trading day in May, 2023.

Welcome Address by Mr Kwa Chong Seng, Chairman of SGX Group, Singapore International Ferrous Week 2022 Opening Ceremony
Guest of Honour Dr Tan See Leng, Minister for Manpower and Second Minister for Trade and Industry, our strategic partner Enterprise Singapore, event partners Fastmarkets, S&P Global Platts and TradeWinds, distinguished guests, ladies and gentlemen, good morning.
A very warm welcome to the Singapore International Ferrous Week 2022. Thank you for joining us at this flagship event for the steel value chain – an annual gathering for participants across the shipping, iron ore, coking coal and steel industries.

Welcome Address by Mr Lee Beng Hong, Head of FICC, SGX Group at Singapore Iron Ore Forum 2022
Distinguished guests, ladies and gentlemen, good afternoon.
A very warm welcome to Singapore Iron Ore Forum, the anchor event of SIFW. This is the 9th year that SGX has been hosting this flagship event for the iron ore community.

Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange and Montréal Exchange Closed for Victoria Day
May 16, 2022 (TORONTO) – Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange and Montréal Exchange will be closed on Monday, May 23, 2022 for the Victoria Day holiday. The Exchanges will re-open for regular trading on Tuesday, May 24, 2022.


Elon Musk Says Twitter Must Prove Bot Claims for $44 Billion Deal to Proceed; Billionaire now says he won’t move forward otherwise; Musk stokes speculation he may walk away from a deal
Edwin Chan – Bloomberg
Elon Musk declared he won’t proceed with his $44 billion takeover of Twitter Inc. unless the social media giant can prove bots make up fewer than 5% of its users, casting yet more uncertainty over the deal. The billionaire tweeted “this deal cannot move forward” unless Twitter provides proof of its claims, reiterating his own view that the ratio is far higher.

Elon Musk raises prospect of lower price for Twitter deal; Tesla chief says deal ‘cannot move forward’ until social media platform provides proof over bots
Richard Waters, Hannah Murphy and Patrick McGee – FT
Elon Musk said his agreed $44bn purchase of Twitter “cannot move forward” until the social media platform provides proof over the number of fake accounts, just hours after he warned the takeover might fall through. On Tuesday morning, Musk hit out again at Twitter chief executive Parag Agrawal for refusing to provide proof over the number of fake accounts. He tweeted that the “deal cannot move forward until he does”.

Elon Musk Demands Clarity on Twitter Fake Accounts for Deal to Move Forward; Tesla CEO says $44 billion deal can’t progress until the social-media company clarifies how many accounts are fake
Thomas Derpinghaus and Sam Schechner – FT
Elon Musk said his $44 billion purchase of Twitter Inc. can’t move forward until the company is clearer about how many of its accounts are fake, casting fresh doubt on his planned takeover of the social-media company. Mr. Musk’s latest comments add to questions about whether he is committed to concluding a deal that was struck amid a steep selloff in technology stocks. Last week, he said the deal was “on hold” over concerns about fake accounts on the platform—a problem that has long dogged social media companies.

Anthem Looks to Fuel AI Efforts With Petabytes of Synthetic Data; Health insurance company is working with Google Cloud to generate 1.5 to 2 petabytes of synthetic data aimed at detecting fraud, delivering personalized service to members
Isabelle Bousquette – WSJ
Anthem Inc.’s chief information officer says he is working with Alphabet Inc.’s Google Cloud to create a synthetic data platform that will let the health insurance company better detect fraud and offer personalized care to its members. Anil Bhatt said the plan is to use algorithms and statistical models to generate approximately 1.5 to 2 petabytes of synthetic data, including artificially generated data sets of medical histories, healthcare claims and other key medical data, created in partnership with Google Cloud.

Kepler Cheuvreux and BMLL partner on order book analytics and algo development; The collaboration will free up Kepler’s quant researchers to spend more time on research and less time on data management.
Laurie McAughtry – The Trade
Kepler Cheuvreux this week confirmed a collaboration with data and analytics provider BMLL to boost its order book analytics and improve algo performance.

Eric Adams: Using blockchain for birth certificates, deeds ‘way of the future’
Theo Wayt – Bloomberg
Making use of crypto technology’s “blockchain” to store birth certificates, property deeds and other government documents is “the way of the future,” according to New York City Mayor Eric Adams. “To have, to use blockchain from everything — to look at deeds, to deal with birth certificates, other records, this is the way of the future and we’re excited about it,” Adams told a room full of cryptocurrency investors on Monday.


Securities meet cybersecurity: how companies can face mounting threats
Roger E. Barton and Kenneth N. Rashbaum – Reuters
The Securities and Exchange Commission (SEC) is upping the ante in the fight against cybercrime. In 2022, a host of new proposed rules directed at public companies, registered investment advisors (RIAs), and investment funds are creating a more robust framework by which these entities must report incidents and make investor disclosures related to cybersecurity.

IBM funding new cybersecurity center at Southern University
Associated Press via Business Report
Six historically Black universities in five Southern states, one of them Southern University in Baton Rouge, will be getting the first IBM cybersecurity centers aimed at training underrepresented communities, the company announced this week.
The other schools included are Xavier University in New Orleans, North Carolina A&T, South Carolina State, Clark Atlanta and Morgan State universities.

US-EU expand access to cybersecurity tools for small businesses
Steve Zurier – SC Magazine
The U.S.-EU Trade and Technology Council (TTC) on Monday announced that they are deepening U.S.-EU cooperation by expanding access to cybersecurity tools for small- and medium-sized businesses and securing critical supply chains, such as semiconductors.
In a joint statement, the TTC said the U.S. and EU will collaborate closely on emerging technology standards, climate and clean technology objectives. They will also focus on data governance and technology platforms, information and communications technology services’ (ICTS) security and competitiveness, and the misuse of technology threatening security and human rights.


Spot the difference: Why crypto data can’t be treated like traditional market data; As institutional participation in cryptocurrency markets increases, traditional data vendors and new specialist crypto data providers are taking different approaches to supplying necessary data to financial firms.
Nyela Graham – WatersTechnology
Ambre Soubiran took a personal interest in blockchain technology before she made a career move into the space. Soubiran, who worked in equity derivatives for 10 years at HSBC, describes her former industry of traditional finance as “highly standardized,” but she was often frustrated by manual processes in the middle and back offices that were still not automated. “The way traditional finance operates today is pretty much a digitized version of the old paper trading way,” Soubiran says.

Novogratz Goes Silent on Twitter After Collapse of Coin He Promoted; The billionaire crypto investor and CEO of Galaxy Digital hasn’t tweeted following the implosion of Luna and Terra last week.
Misyrlena Egkolfopoulou and Tom Maloney – Bloomberg
A few months ago, Michael Novogratz — self-described “Forrest Gump of Bitcoin” — was taking a selfie outside a tattoo parlor in Brooklyn — and, as usual, tweeting all about it. Novogratz was eager to show off his new ink: A wolf howling at the moon, along with the word “Luna” — a nod to the then hot, now not cryptocurrency that’s collapsed spectacularly over the past week

The World’s Best Stablecoin Has Advice for Newbies;l Governments are better at guaranteeing stability than crypto pegged to the US dollar. Hong Kong’s currency is proof of that.
Andy Mukherjee – Bloomberg
The celestial algorithm that keeps the moon in its orbit around the earth clearly works a lot better than the one that governed Luna and Terra. The cryptocurrency pair’s collapse last week has put a question mark on the very premise of stablecoins: stability.

Do Kwon Proposes Creating Another Blockchain From Terra’s Ashes; Kwon wants to get rid of algorithmic stablecoin TerraUSD; Crypto insiders like Binance’s CEO are against the idea
Olga Kharif and Muyao Shen – Bloomberg
Terraform Labs co-founder Do Kwon offered another proposal to revive its troubled Terra blockchain by getting rid of the failed TerraUSD stablecoin and revamping the project into a new network. Kwon wants to copy the blockchain’s code to create a new network, called Terra, and to distribute new tokens to former Terra supporters like key app developers, those whose computers order transactions on the network, and those who still hold TerraUSD, Kwon wrote in a post on a research forum.

Crypto Analytics Firm TRM Hires Ex-DOJ Cyber-Digital Task Force Chair; Sujit Raman, who led development of the 2020 DOJ cryptocurrency enforcement framework, will serve as TRM’s new general counsel
Mengqi Sun – WSJ
Blockchain analytics firm TRM Labs Inc. has hired Sujit Raman as its new general counsel, a former Justice Department prosecutor who led efforts to develop the government’s cryptocurrency enforcement framework. In his new role at TRM, Mr. Raman will report to Chief Executive Esteban Castaño and will be based in Washington.

Nomura to launch institutional digital asset company; New company will operate as a wholly segregated entity with its own capital and resources to enhance time-to-market and innovation, the bank says.
Annabel Smith – The Trade
Nomura has become the latest institution to set out plans to launch a digital assets company for institutional clients. Due to launch later this year, it will offer users access to services and products linked to cryptocurrencies, stable coins, decentralised finance (DeFi), non-fungible tokens (NFTs) and others.


Britain’s Workforce Shrinks Despite a Surge in Wages and Bonuses; Covid and Brexit have reduced the number of people with jobs; Shift has surprised and concerned Bank of England officials
Andrew Atkinson – Bloomberg
Wages in the UK are rising, and employers are paying bonuses to recruit workers in a scarce market. Yet people who left the labor market during the pandemic are staying away.

The City of London Doesn’t Need a Regulatory Reboot; Britain remains a global leader in financial services despite Brexit. Keeping its reputation for safety and strong rules should be its focus.
Paul J. Davies – Bloomberg
The call to cut red tape, to simplify and reduce the burden of taxes and regulation, is ever the siren song from a large section of Britain’s Conservative party and their friends in the City of London. Even at the peak of the UK’s so-called light-touch approach to overseeing finance in 2006, when Britain had spent years loosening standards to attract more business from around the world, demands like these were being made by City of London Corporation-sponsored think tanks. A pamphlet the City Corporation published that year included an essay entitled “All Regulation is Bad.”

Scotland Would Rejoin NATO After Leaving UK, Sturgeon Says; Sturgeon is targeting new vote on independence by end of 2023; SNP plans to remove UK nuclear deterrent from Scottish waters
Alastair Reed – Bloomberg
Scotland is committed to rejoining NATO along with the European Union should it gain independence from the UK after Russia’s invasion of Ukraine heightened security risks, First Minister Nicola Sturgeon said. In a speech in Washington on Monday, the Scottish National Party leader said the war had made membership in the alliance more vital. She pointed to Scotland’s strategic position in the north of Europe and regular approaches by Russian military aircraft and submarines. The SNP, though, retains its policy of seeking the removal of the UK’s nuclear submarine base from Scotland.

Crypto’s collapse highlights UK policy tensions; Weeks after London pitched itself as a ‘global hub’, market disorder further muddies debate over regulation
Helen Thomas – FT
It was impressive timing. Just five weeks after Treasury minister John Glen stood up and made an unexpected pitch for the UK to be “the very best place in the world to start and scale crypto-companies”, the crypto markets have experienced a disorderly collapse that has prompted questions about the entire endeavour.

Turkey’s Erdogan Puts the Brakes on NATO’s Nordic Expansion; Erdogan voices firm opposition before talks on Sweden, Finland; Turkish president calls Sweden ‘nesting ground’ for terrorists
Selcan Hacaoglu – Bloomberg
Turkish President Recep Tayyip Erdogan said he won’t allow Sweden and Finland to join NATO because of their stances on Kurdish militants, throwing a wrench into plans to strengthen the western military alliance after Russia’s invasion of Ukraine.

Erdogan’s NATO Brinkmanship Smacks of Desperation; The alliance should remain skeptical of the Turkish president’s attempt to play Sweden and Finland’s entry into the group to his advantage.
Bobby Ghosh – Bloomberg
What exactly does Recep Tayyip Erdogan want from NATO? And more to the point, does NATO need to give it to him? On Friday, with the alliance anticipating formal applications for membership from Finland and Sweden, the Turkish president casually tossed a wrench into the works by saying his country would “not look positively” upon the expansion.

Hong Kong Leader Targets City’s Reputation With Government Rejig; John Lee says Hong Kong bad mouthed by some politicians; More manpower will be added to government, new leader says
Kari Soo Lindberg and Shirley Zhao – Bloomberg
Hong Kong’s next leader will bolster his government with more manpower, in part to counter international criticism of China’s influence on the legal reputation of the financial hub. “We have been bad mouthed by some politicians for political reasons, criticizing unfairly the system that is being practiced in Hong Kong,” John Lee said at a press briefing Tuesday afternoon. “It is important we tell the true story and reflect the true situation of Hong Kong to the world.”

Hong Kong Considers Blocking Telegram, Local Paper Says; Privacy watchdog weighing order to restrict public access; The move may ignite criticism over curbs on internet freedoms
Felix Tam and Kari Soo Lindberg – Bloomberg
Hong Kong authorities are deliberating whether to curtail public access to the messaging service Telegram, the Sing Tao Daily reported, potentially reviving fears the former British colony is moving closer toward Beijing-style internet controls. The Privacy Commissioner for Personal Data is considering invoking regulations for the first time to restrict access to a platform it found to be rampant with doxxing, the local newspaper reported Tuesday. The widespread doxxing — or online exposure of sensitive and personal data — was aimed at government officials as well as citizens, the newspaper said, citing unidentified people.


Commissioner Goldsmith Romero to Participate on a Panel Discussion at Managed Funds Association’s Annual Legal and Compliance Conference
Commissioner Christy Goldsmith Romero will participate in a panel discussion, Ethics: A New Era of Oversight, at the Managed Funds Association’s Annual Legal and Compliance Conference

CFTC Commissioner Mersinger Announces Staff Appointments
CFTC Commissioner Summer Mersinger announced today that Chris Lucas will serve as Chief of Staff and Counsel, Terry Arbit will serve as Senior Counsel, and Elizabeth (Libby) Mastrogiacomo will serve as Senior Counsel. “At such a critical moment for the CFTC, I am delighted to welcome Chris, Terry, and Libby to my team,” said Commissioner Mersinger. “Their deep expertise will be invaluable as we work to promote integrity, resilience, and innovation within the CFTC and more broadly in US markets.”

Commissioner Pham to Speak on a Panel at the DC Blockchain Summit
Commissioner Caroline D. Pham will speak on a panel with CEOs and co-founders of digital asset firms titled, Token Jurisdiction: Deep Dive into SEC and CFTC Oversight, at the DC Blockchain Summit on May 24, 2022.

SEC Obtains Emergency Relief to Halt Pre-IPO Stock Fraud Scheme by Unregistered Broker-Dealer
The Securities and Exchange Commission today announced that it obtained asset freezes and other emergency relief against StraightPath Venture Partners LLC, StraightPath Management LLC, Brian K. Martinsen, Michael A. Castillero, Francine A. Lanaia, and Eric D. Lachow (collectively, the defendants) to halt ongoing securities violations, including allegedly selling pre-initial public offering (IPO) shares they did not own, pocketing undisclosed fees, and commingling investor funds, resulting in Ponzi scheme-like payments. The relief arose from fraud and registration charges filed by the SEC.

Investing and Trading

Helping The Ultra-Wealthy Establish Family Dynasties
Russ Alan Prince – Private Wealth
“In a survey of 403 ultra-wealthy family enterprises, about three out of five participants are interested in creating a family dynasty,” says Cliff Oberlin, chairman and CEO of Oberlin Wealth Partners and co-author of Family Fortunes: How Family Enterprises Thrive Across Generations, “By a family dynasty we mean a cohesive economic entity where the perpetuation of family wealth, values, and objectives lasts for five or more generations. To be clear, it’s not only the wealth of the family that has to be maintained or grown over the generations but the values of the family must be maintained.”

The Role Of Cryptocurrency In The Future Of Investing
Russ Alan Prince – Private Wealth
Marc X. LoPresti, Esq. is managing director of The Strategic Funds, co-founder of The Strategic Group; founder of LoPresti Law Group, P.C., co-founder of BattleFin Group; LLC and IDI Group, and is a recognized authority on alternative investments. With 20+ years of practice as a securities attorney in New York, Marc has structured and launched numerous alternative asset management ventures He also oversees the Firm’s family office consulting practice, which provides advice about alternative allocations to ultra-high-net-worth families both in the United States and abroad.

Bear Market Rallies Can Be a Treacherous Lure; The descent from a historic top tends to be punctuated with violent reversals. Playing these rebounds is best left to traders who can move fast.
John Authers – Bloomberg
The dizzying volatility continues. Markets don’t generally fall in a straight line, and bear market cycles provide plenty of opportunities. The problem is that those include the chance both to make and lose money.

Value stocks shield investors from worst of 2022 market storm; Managers betting on unloved companies prosper after more than a decade of growth dominance
Harriet Agnew and Chris Flood – FT
Value stocks are providing investors some shelter from the storm sweeping markets, as portfolio managers seek out bargains and dump high-flying companies that have been in vogue since the wake of the financial crisis. The MSCI World value index has fallen around 7 per cent in 2022 on a total return basis, far better than the 25 per cent tumble for the index provider’s growth index.

Environmental, Social and Corporate Governance

Calling a Man ‘Bald’ Isn’t Sexual Harassment; A UK court got it wrong when it said that calling a co-worker “bald” created an intimidating work environment.
Stephen L. Carter – Bloomberg
Everybody relax. It’s still safe to say “bald” in the workplace. News reports to the contrary notwithstanding, a UK employment tribunal didn’t hold last week that using the word is sexual harassment. What the panel did hold, however, was sufficiently nit-picky that it might scare people away from a perfectly good word. The wordsmith in me is alarmed.

Richest Asian Is Also Busiest Dealmaker With a $17 Billion Spree; Gautam Adani has been on a dealmaking spree the past year; Adani scouting for media targets, exploring pact with Aramco
P R Sanjai – Bloomberg
Indian billionaire Gautam Adani became the richest person in Asia this year. Now, a vast empire-building exercise is making him one of the region’s busiest dealmakers. A $10.5 billion pact announced Sunday to buy the Indian operations of Swiss building-materials firm Holcim Ltd., capped a run of some 32 acquisitions for Adani the past year, valued at about $17 billion, according to data compiled by Bloomberg News.

Los Angeles County Property Market Soars by Record $100 Billion; More than $18 billion in tax revenue expected in 2022; Homelessness still a problem as median home hits $1 million
Fola Akinnibi – Bloomberg
Property values in Los Angeles County are projected to rise by a record $100 billion this year, providing a boon to municipal coffers on the back of a hot housing market. The amount translates to $1.86 trillion in net value for taxable properties in the county, a 6% increase from 2021, according to a May forecast of the county’s assessment roll, which is used to plan local budgets. The increase is expected to result in more than $18 billion in property tax revenue for governments that will be used for public services like education. The 6% annual increase is greater than the rate of 2021, when the property tax assessment roll grew 3.7% to $1.76 trillion from the prior year.

California Push to Seat More Women on Boards Ruled Unlawful; Judge not persuaded law would boost California’s economy; ‘Train has already left the station,’ women’s group says
Malathi Nayak and Jeff Green – Bloomberg
California’s landmark requirement that corporate boards include women was ruled unconstitutional. The first-in-the-nation mandate, signed into law in 2018, was struck down by a Los Angeles state court judge Friday following a trial. The ruling was posted on the court’s website Monday.


Bank of America Clients Hoard Cash at Highest Level in Two Decades; Monthly BofA survey shows highest cash levels since 9/11; Hawkish central banks are now seen as the biggest tail risk
Sagarika Jaisinghani and Michael Msika – Bloomberg
Investors are piling into cash as the outlook for global growth drops to an all-time low and stagflation worries mount, according to a Bank of America Corp. fund manager survey that points to continued stock-market declines. Cash levels among investors hit the highest level since September 2001, the report showed, with BofA describing the results as “extremely bearish.” The survey of investors with $872 billion under management also showed that hawkish central banks are seen as the biggest risk, followed by a global recession, and stagflation fears have risen to the highest since 2008.

Berkshire Tweaks Bank Play With $2.9 Billion Bet on Citi; Citi, Ally stakes disclosed as Berkshire exits Wells Fargo; Paramount, Celanese add to company’s first-quarter picks
Katherine Chiglinsky and Max Reyes – Bloomberg
Warren Buffett’s Berkshire Hathaway Inc., which cut many bank holdings as the pandemic bore down on the US, is back with a roughly $2.9 billion bet on Jane Fraser’s Citigroup Inc. even as it said goodbye to a long-time stake in Wells Fargo & Co.

Goldman Sachs Takes a Page From Netflix and Twitter on Vacation Rules; One of Wall Street’s best-known and most hard-charging banks is offering some senior employees the option to take more time off
Lindsay Ellis, Charley Grant – WSJ
Goldman Sachs Group Inc., the 153-year-old Wall Street firm synonymous with long hours and a hard-charging culture, is telling some senior employees it won’t be capping their days off. Once reserved for only a handful of technology companies like Netflix Inc. and Twitter Inc. unlimited paid time off has been adopted more broadly in the tight labor market, according to a survey from employee benefits adviser Mercer. Companies that have adopted the policy say the benefit can minimize burnout and instill a sense of trust among workers.

Wellness Exchange

Coronavirus cases proliferate, especially in the Midwest, as the U.S. death toll nears one million.
Anushka Patil and Julie Walton Shaver – NY Times
Coronavirus cases are spreading at an alarming rate across the United States, particularly in the Northeast and the Midwest, as the country’s death toll nears the one million mark. An average of more than 90,000 new cases are now being identified each day in the United States, a 60 percent increase from two weeks ago. And in much of the Northeast and Midwest, daily new-case reports have already surpassed the peak of last summer’s Delta surge. The new surge is probably worse than what is being recorded because many coronavirus infections are not included in the official tally. Many positive results from at-home virus tests go unrecorded.

Indonesia Relaxes Mask Mandate, Scraps Traveler Testing Rule; Masks are required for crowded outdoor areas, public transport; Government to keep remaining virus curbs until at least May 23
Grace Sihombing – Bloomberg
Indonesia will make wearing masks outdoors optional and remove testing requirement for fully-vaccinated overseas travelers as the local virus situation improves. Masks are still required for crowded outdoor areas, indoor activities and on public transport, President Joko Widodo said in a Tuesday speech. Those who are elderly, have underlying health conditions or exhibit symptoms of a cold are encouraged to still wear masks, he added.

Long Covid Symptoms Often Include Crushing Fatigue. Here’s How to Cope; Trying to push yourself will often make the symptoms worse. Try these strategies instead.
Sumathi Reddy – WSJ
Ken Todd, a 53-year-old in New York City, ran 18 marathons before he got Covid last year. Now, going out to brunch with friends exhausts him. “I need to plan to basically lie down when I get home for the rest of the day,” says Mr. Todd. He is among the many long Covid patients suffering from fatigue months after initial infection. Doctors say that many, like Mr. Todd, experience not only tiredness but also a syndrome called post-exertional malaise. Some long Covid patients try to push through the fatigue, a decision that often backfires and makes the fatigue and other symptoms worse.

As New Covid-19 Variants Drive Fifth Wave in South Africa, Virus Becomes a Fact of Daily Life; Omicron-type variants fuel rise in infections but not hospitalizations or deaths
Denise Roland, Aaisha Dadi Patel – WSJ
South Africa is in the midst of its fifth wave of Covid-19, driven by two variants related to the Omicron strain that fueled a surge in cases around the world over the winter. Life continues as normal. The country, which was at the forefront of that first Omicron wave that took hold in November last year, is a model for living with the virus in the long term. For the average South African, the virus has receded into a humdrum fact of daily life. Behind the scenes, dozens of scientists closely track its every move.


One-Time Richest Singapore Tycoon Has Lost 80% of His Fortune; Forrest Li is no longer among the world’s 500 richest people; Company will post a record quarterly loss, analysts estimate
Yoojung Lee and Yoolim Lee – Bloomberg
Just a few months ago, Forrest Li had a $22 billion fortune and was the richest person in Singapore. Now he’s emerging as one of the biggest losers from a market crash that’s wiped more than $1 trillion from the net worth of the world’s 500 richest people this year. It’s been a litany of unfortunate events for the Sea Ltd. founder: The tech selloff, the shutdown of its main e-commerce operation in India and disappointing earnings have tanked the company’s American depository receipts more than 80% from a peak in October. He’s still rich — worth $4.7 billion, according to the Bloomberg Billionaires Index — but no longer enough to make the cutoff for the top 500 on the planet.

Tencent, Alibaba Look Like Utilities After $1 Trillion Drubbing; Twin Chinese giants may report their slowest growth on record; World’s largest game publisher is likely among the hardest-hit
Zheping Huang – Bloomberg
For years they were two of the fastest-growing companies worldwide — stock-market darlings worth a combined $1.7 trillion at their peak. Now Tencent Holdings Ltd. and Alibaba Group Holding Ltd. are struggling to keep up with even the most staid utilities as China’s crackdown on internet giants takes its toll.

Wheat importers in Asia scramble for supplies after Indian export ban
Michael Hogan and Maytaal Angel – Reuters
Wheat importers in Asia were scrambling to find new sources of supply on Monday after India banned exports of the grain at the weekend in a bid to keep a lid on soaring domestic prices, trade sources told Reuters. Importers, especially those in Asia, were banking on wheat from India, the world’s second-biggest producer, after exports from the Black Sea region plunged following Russia’s Feb. 24 invasion of Ukraine.

Palm Oil Farmers Rally to Protest Indonesia’s Export Ban; Prohibition on exports fails to cool local cooking oil prices; Jokowi’s rating slumps to six-year low as food costs climb
Eko Listiyorini and Rieka Rahadiana – Bloomberg
Hundreds of smallholders in Indonesia, the world’s biggest palm oil shipper, rallied to protest against a ban on exports of the commodity, piling pressure on President Joko Widodo to scrap the policy.

Indonesian palm oil farmers protest demanding the government to end the palm oil export ban, in Jakarta
Hundreds of Indonesian smallholder farmers staged a protest on Tuesday in the capital Jakarta and in other parts of the country, demanding the government end a palm oil export ban that has slashed their incomes. Indonesia, the world’s top palm oil exporter, on April 28 halted shipments of crude palm oil and some of its derivative products to control soaring prices of domestic cooking oil, rattling global vegetable oil markets.

Five ace fund managers join hands to launch new age financial services
Saikat Das – Economic Times
Two former executives from Goldman Sachs and Macquarie have joined hands with an ace fund manager and two others to float a company that would deal in a combination of new age advisory, home loans and fund management businesses.

Russian Media Mogul’s SPACs Avoid U.S. Trading Suspensions; SPACs run by a sanctioned Russian oligarch’s old business partner are among the only Russian-controlled companies still trading in the U.S.
Amrith Ramkumar – WSJ
When Russia invaded Ukraine, U.S. stock exchanges suspended trading in most Russian stocks listed in New York. They skipped two companies launched by a Russian media mogul, which are still trading and are on the hunt for acquisitions. Two special-purpose acquisition companies, or SPACs, created by Russian businessman and investor Ivan Tavrin have continued trading normally on the Nasdaq Stock Market NDAQ -0.92% even as other large Russian companies and exchange-traded funds remain suspended.


A new bikepacking adventure — on London’s doorstep; Due to be launched next week, the Cantii Way takes riders on a four-day loop through the byways of rural Kent
Simon Usborne – FT
In April 1884, an Englishman named Thomas Stevens strapped bags to his penny-farthing and packed a spare shirt, a wax raincoat that doubled as a tent, a bedroll and a revolver for fending off bandits. As the grocer pedalled across America — and then Europe and Asia — to become the first cyclist to ride around the world, he was launching a trend almost 150 years before its time.

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The Spread

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