DTCC and Cboe Clear Europe to Introduce New Clearing Workflow for OTC Cash Equities Trades

Jun 11, 2024

First Read

Hits & Takes
John Lothian & JLN Staff

This Friday, join David Setters at the City against MND Annual Cricket Day to raise funds for the Motor Neurone Disease (MND) Association. Can’t attend? Donate HERE. At the event there will be an auction of international shirts signed by Jos Buttler and prints signed by ex-England wicket-keeper Jack Russell, sourced by Richard Brailsford & Artists against MND. Thanks to the teams and sponsors, as the event aims to raise over £30K for the UK MND Research Institute. Join Dave at Blackheath Cricket Club, London SE3 7EY, on June 14. Play starts mid-morning, with the bar open from 11 am. No entrance fee.

The SEC’s Office of Investor Education and Advocacy issued an Investor Alert that warns about scams involving “pre-IPO” shares, often promoted via social media, phone, email, and in person. These investments are high-risk and frequently illegal, as many pre-IPO offerings are unregistered with the SEC. Scammers use tactics like unregistered sales agents, aggressive cold calling, and exploiting popular trends (e.g., crypto, AI) to lure investors. Common red flags include false claims about IPO timing, share availability, and misleading comparisons to successful companies. Investors should verify the legitimacy of both the investment and the seller, and exercise caution with unsolicited offers and promises of high returns.

Today we have episode 10 of Futures Discovery sponsored by MIAX about the role of the FCM, featuring an interview with Wedbush’s Robert Fitzsimmons. He is one of my favorite interview subjects because of how he stays on point. I once joked that when he was with Nasdaq Liffe and you asked him a question about hurricanes, his answer would be about how the nice thing about single stock futures is that they are electronically traded and not impacted by weather events like hurricanes. Thank you, Bob, for participating in our Futures Discovery series.

CFTC Chairman Rostin Behnam is scheduled to testify before the U.S. Senate Committee on Appropriations’ Subcommittee on Financial Services and General Government. The testimony will take place on Thursday, June 13, 2024, at 10:00 a.m. (EDT) in Hearing Room 138 of the Dirksen Senate Office Building, located in Washington, DC.

CFTC Commissioner Caroline D. Pham will deliver a keynote fireside chat on the compliance and enforcement landscape at the CFTC during Compliance Week’s Financial Crimes and Regulatory Compliance Summit. The event will take place on Tuesday, June 11, 2024, at 12:05 p.m. (EDT) at Fordham Law School in New York City.

Nancy Stern is starting a new position as managing director, general counsel at Simplex Investments LLC, she shared on LinkedIn.

Christine Sandler is starting a new position as co-founder at Triple Crown Digital. She has previously served as executive vice president, global head of sales for NYSE Euronext.

JLN yesterday received $250 for the JLN MarketsWiki Education GoFundMe campaign to support our efforts to preserve industry history. Thank you to our anonymous contributor for your very kind gift. Our GoFundMe balance is now up to $78,102 of our $300,000 goal. So far there have been 220 contributions to the campaign, including some who have given more than once.

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

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The World Federation of Exchanges (WFE) released a paper, “Demystifying Tokenisation: Embracing the Future,” coinciding with the European Commission’s stakeholder meeting in Brussels on asset tokenization. The paper advises a balanced approach to tokenization, viewing it as an innovative extension of traditional finance, offering new opportunities without drastic changes. This reflects ongoing investments by exchanges in innovation. Read the release and download the full paper here. ~SAED

Our most read stories from our previous edition of JLN Options were:
Retail traders push India stock option volumes above S&P 500 from the Financial Times.
Beneath the Calm Market, Stocks Are Going Haywire from The Wall Street Journal.
Traders Are Bracing for Volatility on Fed-CPI Double Blow from Bloomberg. ~JB

Subscribe to the JLN Options Newsletter HERE (it’s free).

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Sponsored Content
Four decades of Russell Indexes Reconstitution [a webinar with Cboe & CME Group]

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Read the research > Untangling the differences between the Russell 1000 Index® and S&P 500

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Financial Journalist Greg Burns Recalls Reporting on the Evolution of the Chicago Exchanges
JohnLothianNews.com

JLN spoke with veteran financial journalist Greg Burns at the FIA Futures Industry Conference in Boca Raton for John Lothian News.

Burns talked about how he got into journalism and what reporting on the exchanges was like in earlier days. He said he had been involved in journalism ever since high school – he went on to get a graduate journalism degree – but covering the futures markets came as a surprise.

Watch the video »

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The role of the FCM: Futures Discovery EP 10
JohnLothianNews.com

Today, we’re immersing ourselves in a detailed exploration of the pivotal Role of Futures Commission Merchants, commonly known as FCMs. These financial intermediaries play a crucial role in facilitating futures and options trading, serving as a linchpin in the complex web of derivative markets. Understanding the intricate responsibilities and functions of FCMs is essential for navigating the dynamic landscape of modern financial systems.

Watch the video »

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Eventus announces continued growth in client base, global expansion as company wins Best Trade Surveillance Solution for Validus platform in TradingTech Insight USA Awards 2024
Eventus
Eventus, a leading provider of comprehensive, at-scale trade surveillance and financial risk solutions, announced that its Validus platform continues to capture business from firms seeking to move away from legacy trade surveillance providers, with a 25% increase in its client base over the past year. The announcement comes on the heels of another award win for excellence in trade surveillance, further global expansion with the signing of its first South African client – one of Africa’s largest diversified financial groups – and a continued high renewal rate for existing clients globally. The company now has clients on six continents.
/jlne.ws/3Vxuexo

***** You get the idea that there is a lot to this surveillance thing.~JJL

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Roaring Kitty’s favourite stock tends its cash hoard as sales dwindle; GameStop has used social media popularity to stockpile money with no obvious use while its operations decline
Gregory Meyer – Financial Times
GameStop’s ecommerce strategy has faltered, its bricks-and-mortar store count is shrinking and its sales are in a multiyear slide. But one measure of the video game retailer is a picture of health: the amount of cash in its accounts. The company at the centre of the 2021 meme-stock frenzy has once again captivated Wall Street after its shares soared in the past month on little more than the re-emergence of the influential social media fan known as Roaring Kitty.
/jlne.ws/4ekjzxc

*****Greg Meyer is the FT’s US consumer editor, covering retail, consumer packaged goods and food companies, but he found a way to get back to his roots covering the markets. It is hard to get them out of your blood once you have covered them.~JJL

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Monday’s Top Three
Our top story Monday was a tie between the World Federation of Exchanges’ Focus article, How to Scale Carbon Markets by Fredrik Ekstrom, head of carbon markets at Nasdaq, and another WFE Focus article, AI-Driven Synthetic Data Engineering for Improved Digital Resilience by Daria Degtyarenko, senior marketing communications manager at Exactpro. Second was The Wall Street Journal’s Personal-Finance Books to Put on Your Summer Reading List. And third was another feature from the WFE’s Focus, Travers Smith and WFE Discuss Impending Regulatory Changes: DerivSource Webinar.

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Lead Stories

DTCC and Cboe Clear Europe to Introduce New Clearing Workflow for OTC Cash Equities Trades and Deliver Enhanced Efficiencies to the Industry
DTCC
DTCC, the premier post-trade market infrastructure for the global financial services industry, today announced it is working with Cboe Clear Europe to deliver an enhanced post-trade workflow for over-the-counter (OTC) cash equities trades to help increase settlement efficiencies across UK and European markets. DTCC, the leading post-trade market infrastructure, will collaborate with Cboe Clear Europe, the largest and most-connected pan-European cash equities CCP, to increase post-trade efficiencies while providing clients with the benefits of an established risk management counterparty. The service will bring OTC cash equities trades into Cboe Clear Europe’s cleared environment, which can then be netted against on-exchange transactions for settlement purposes, delivering potentially significant efficiencies.
/jlne.ws/3yXsjt4

White House Prepares to Tap Derivatives Regulator to Oversee FDIC; Christy Goldsmith Romero would succeed Martin Gruenberg, who has agreed to resign
Andrew Ackerman and Andrew Restuccia – The Wall Street Journal
The White House is close to naming derivatives regulator Christy Goldsmith Romero to head the Federal Deposit Insurance Corp., replacing the beleaguered banking agency’s longtime chairman Martin Gruenberg. Gruenberg bowed to pressure to resign from the FDIC in May after an external investigation found widespread sexual harassment and other misconduct at the agency and lawmakers in both parties berated his leadership. He said he would step down after a successor is confirmed by the Senate.
/jlne.ws/4aXjKvL

***** Here is the Reuters version of this story.~JJL

Hong Kong’s Identity Crisis Fuels $270 Billion Property Wipeout; The five-year property downturn is emblematic of a steady loss of faith in the city’s status as Asia’s premier financial hub.
Krystal Chia and Claire Ballentine – Bloomberg
Even in a city famed for outsized real estate swings, Hong Kong’s deepening property slump stands out. The home-price downturn in this packed metropolis will soon reach its five-year mark, the longest retreat since the depths of the SARS crisis more than two decades ago. When combined with losses in commercial property, at least HK$2.1 trillion ($270 billion) has been erased from real estate values in the city since 2019, according to a new analysis by Bloomberg Intelligence. Forecasters at UBS Group AG and CBRE Group Inc. predict more pain to come.
/jlne.ws/3RlAUMB

Private equity groups poised to own one in three top US accounting firms; A wave of talks with financial bidders comes as regulators voice concern about audit quality and ‘tone’
Stephen Foley and Antoine Gara – Financial Times
Ten of the 30 largest US accounting firms could soon be in private equity hands, according to people familiar with negotiations, as at least four groups hold deal talks following this year’s sales of Grant Thornton and Baker Tilly. The acquisitions by financial buyers of those two top-10 firms by revenue opened the floodgates to other deals, the people said, positioning private equity to increase its influence over the US accounting profession dramatically.
/jlne.ws/3xcut7C

OCC readies new intraday margin requirement; Draft measure would cover all options positions including 0DTEs
Faye Kilburn – Risk.net
The Options Clearing Corporation (OCC) is planning to implement new margin requirements in a third phase of an initiative aimed at safeguarding the options market from intraday risk. The new margin calls will apply to all options positions in clearing member portfolios but will primarily affect zero-day to expiry options (0DTEs), derivatives contracts with less than 24 hours to expiry. After a recent boom in activity, trading in zero-day options has grown to account for roughly half of all trading
/jlne.ws/4ebIJhL

DTCC and Cboe Clear Europe to create new OTC cash equities clearing workflow; The pair intend to develop a proof of concept that links DTCC’s tri-party trade matching workflow with Cboe Clear Europe.
Annabel Smith – The Trade
DTCC and Cboe Clear Europe are set to team up to create a new clearing workflow for OTC cash equities clearing. The new service will bring OTC cash equities trades into Cboe Clear Europe’s cleared environment, which can then be netted against on-exchange transactions for settlement purposes. Creating a link between DTCC’s Institutional Trade Processing (ITP) central matching service, CTM, makes up the first part of the joint initiative. Subject to regulatory approvals, this is projected to go live in Q2 of next year.
/jlne.ws/4eko2Qu

‘Anti-Woke’ Shareholders Are Going After Corporate Boards; Activists say they want to get politics out of business, but proposals fail to gain much traction
Sarah Nassauer and Theo Francis – The Wall Street Journal
A new kind of shareholder activism is rattling companies: “anti-woke” agitators.Shareholders at dozens of big companies, from GE Aerospace to UPS, are voting on proposals opposing environmental and social initiatives this year. Investors backed by conservative groups are suing Target and other companies for their progressive stances. And companies are muting their focus on diversity, equity and inclusion initiatives as DEI programs come under legal and political threat.
/jlne.ws/3KEpJe1

Shocks to the system: how Basel IRRBB update affects new EU test; Disclosures suggest more banks will be classified as outliers on net interest income assessment
Samuel Wilkes – Risk.net
It never rains, but it pours. Just as banks in the European Union are preparing for a new test of the interest rate risk embedded in their banking books, the Basel Committee on Banking Supervision is proposing an updated global standard to set parameters for testing the same risk. Absent from the discussion are any estimates of the impact the Basel Committee’s proposed changes to global shock sizes will have on the test outcomes.
/jlne.ws/3VdOrXE

LCH SA names new head of CDSClear and head of DigitalAssetClear; New appointment has been with LSEG Group for 15 years, prior to which he held positions at JP Morgan and the Commonwealth Bank of Australia.
Wesley Bray – The Trade
LSEG’s Continental European clearing house LCH SA has appointed Marcus Robinson head of CDSClear and head of DigitalAssetClear. The move follows the departure of Frank Soussan, who previously served as global head of CDSClear and head of SA EquityClear and CommodityClear.= Robinson – who previously served as head of strategy for LSEG Post Trade – will lead CDSClear as it enters the next phase of its international expansion, namely across the US, building upon the launch of client clearing to US firms in February.
/jlne.ws/3ViPaqz

Trio of new Citigroup executives stirs succession talk on Wall Street; Jane Fraser’s hiring of three new leaders to boost turnaround project prompts speculation one could be next in line
Stephen Gandel and Stephen Foley – Financial Times
Citigroup chief executive Jane Fraser has sparked speculation on Wall Street about a three-way race to be her heir apparent, after tapping a trio of outsiders with impressive résumés to aid her turnaround of the underperforming bank. Executives from the accounting firm PwC and rival banking behemoth JPMorgan Chase – Tim Ryan and Vis Raghavan, respectively – joined Citi last week, alongside Andy Sieg, who was brought in from Bank of America last year. The trio round out a leadership team that Fraser hopes will invigorate a profit-boosting reorganisation – and which investors say could produce an alternative leader if Fraser’s turnaround stalls. “She has brought in very talented individuals,” said Brian Mulberry, a director at Zacks Investment Management, which holds Citi shares.
/jlne.ws/4aST2o5

NSE CEO’s deepfake VIDEO? Exchange gives out major warning
Kumar Gaurav – ET Now
Leading domestic stock exchange, the National Stock Exchange (NSE), has cautioned investors against deepfake videos of its MD and CEO, Ashishkumar Chauhan, giving investment advisories. The exchange, in a statement, said that it has observed the use of Chauhan’s face and voice, along with the NSE logo featuring a star and a hexagon, in a few investment and advisory audio and video clips falsely created using technology, reported PTI. Such videos seem to have been created using sophisticated technologies to imitate Chauhan’s voice and facial expressions.
/jlne.ws/3KBenYa

Loss of diversification benefits ‘will drive higher; FRTB charges’ Independent study backs industry’s claims of significant rise in market risk capital requirements
Daniel Blackburn – Risk.net
The loss of portfolio diversification benefits under new trading book capital rules will be a significant driver of increased market risk capital requirements, say the authors of research into the proposed framework. This could be contributing to banks’ reluctance to use internal models to calculate the new capital requirements.
/jlne.ws/3KDgOtr

Basel Committee Must Stop Global Banks From Continuing To Cheat On Key Regulatory Tests And Endangering Financial Stability
Better Markets
Dennis Kelleher, Cofounder, President and CEO, issued the following statement in connection with filing a comment letter with the Basel Committee on Banking Supervision on a proposal to stop global banks from manipulating their balance sheets to cheat on key regulatory rules: “The rule proposed by the Basel Committee is necessary because clear evidence shows that the biggest global banks that pose the gravest risks to the financial system and economies of the world have been systemically, knowingly, and intentionally cheating on critical regulatory tests for many years. Worse, they are cheating so that their highest risk activities will be under-regulated, that they can increase short term profits and bonuses, and shift the costs of losses and failures to society.
/jlne.ws/3KGSgjj

California looks to seize profits from Big Oil in climate change lawsuit; Consumer protection and advertising laws used to pursue civil suit
Aime Williams and Jamie Smyth – Financial Times
California will attempt to use consumer protection laws to seize some of the world’s biggest oil companies’ profits as part of a lawsuit accusing them of deceiving the public for decades over their role in climate change. State attorney-general Rob Bonta invoked a new state law on Monday that allows claimants to target company profits that can be identified from the violation of consumer protection and advertising laws.
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Private Equity Is on Sale; Secondary market valuations, Roaring Kitty’s livestream, DJT ticker confusion, quant pivot to AI, elite recruiting, BNB and parking lots.
Matt Levine – Bloomberg
Markups
Most people who buy and sell financial assets for a living need to know how much their portfolio is worth at any given time, or at least at the end of the quarter. If you manage investments for clients, you have to send the clients periodic statements saying “your investments are worth $_____”; you have to know what number to put in the blank. The clients want to know, for one thing, but also, how much you charge the clients might depend on the number that you put in the blank. If you charge the clients a percentage of current assets, then you need to know what the assets are currently worth. If you charge the clients a performance fee on unrealized gains, you need to know how much the value of the assets has increased since the last statement. Even if you don’t manage client money, your employers will want to know how much your portfolio is worth, so they can keep an eye on risk and pay you for your performance.
/jlne.ws/3XdhiOs

Commentary: The ‘Climate Crisis’ Fades Out; As the energy transition inches through the ‘issue attention’ cycle, a wiser approach should emerge.
Steven E. Koonin – The Wall Street Journal
The 2015 Paris Agreement aspired to “reduce the risks and impacts of climate change” by eliminating greenhouse-gas emissions in the latter half of this century. The centerpiece of the strategy was a global transition to low-emission energy systems. After nearly a decade, it’s timely to ask how that energy transition is progressing and how it might fare in the future. A useful framework for that assessment is the “issue attention cycle” described in 1972 by Brookings Institution economist Anthony Downs. The five phases of that cycle mark the rise, peak, and decline in public salience of major environmental (and other) problems. It’s spooky to see how closely the energy transition has so far followed Downs’s description.
/jlne.ws/4b0fUSC

The Gensler SEC Loses Again; The Fifth Circuit slaps down the agency’s private-markets rule.
The Editorial Board – The Wall Street Journal
Talk about a rough few days for the Securities and Exchange Commission. The Fifth Circuit Court of Appeals last Wednesday blocked its private-fund disclosure rule. And the agency announced it is closing a regional office after getting sanctioned by a federal judge. Unsatisfied with his day job, Chairman Gary Gensler has been seeking to expand the agency’s power over America’s growing private markets. Over the past decade, the number of private funds has tripled while their value has grown to $26.6 trillion from $9.8 trillion. Government pension funds chasing higher returns are among their biggest investors. Mr. Gensler wants a regulatory piece of this action, though Congress has never given him the power.
/jlne.ws/4bUZoEK

Ukraine Invasion

Opinion: Vladimir Putin’s soft underbelly has been revealed
Andrew Fox – The Telegraph
Vladimir Putin has made much of his red lines. In his state of the union address in 2021, he said, “I hope no one will think of crossing the red line with Russia… And where this line will be, in every particular case, we will determine it ourselves.” One of those red lines was the use of American weapons to attack inside Russian territory, with Dmitri Medvedev threatening to arm the USA’s opponents in “unnamed regions” in response. In breaching that red line with impunity and US backing, Ukraine has gained a significant tactical advantage.
/jlne.ws/3XlrVyH

Europe in Talks to Keep Russia-Ukraine Gas Pipeline Flowing; Russian gas still goes through Ukraine pipeline despite war; Parts of Europe are worried about the end of supply deal
Ewa Krukowska, Petra Sorge, Anna Shiryaevskaya, Kamil Kowalcze, and Krystof Chamonikolas – Bloomberg
European officials are in talks to keep gas flowing through a key Russia-Ukraine pipeline, as they race to prevent Moscow’s war further damaging the continent’s energy supplies. Europe has tried to wean itself off Russian gas but several eastern European states continue to receive it through a pipeline that crosses Ukraine. The agreement that covers this transit arrangement expires at the end of this year. And with war raging, most market watchers expect the gas to finally come to a halt. But European government and company officials are talking to counterparts in Ukraine about how to keep the gas flowing next year, according to people familiar with the matter who declined to be named as the talks are private.
/jlne.ws/3Vmkuoi

US drops ban on arming Ukraine’s controversial Azov battalion
The Telegraph
The Biden administration has lifted restrictions on the transfer of American weapons and training to the Azov Brigade, a controversial Ukrainian military unit. The move will help the Azov Brigade, among Ukraine’s most effective and popular fighting units, move beyond its reputation as a far-right movement. US laws prohibit providing equipment and training to foreign military units or individuals suspected of committing gross human rights violations, but the State Department said it found “no evidence of Gross Violations of Human Rights committed” by the force.
/jlne.ws/3xeIEcq

Biden to lift ban on Ukrainian unit using US weapons, Wash Post reports
Reuters
The Biden administration will lift its ban on allowing a controversial Ukrainian military unit to use U.S. weapons, the Washington Post reported on Monday, citing State Department officials. The State Department reversed a decade-old prohibition on the Azov Brigade from using American training and weapons after a new analysis found no evidence of human rights violations by the unit, the Post reported. “After thorough review, Ukraine’s 12th Special Forces Azov Brigade passed Leahy vetting as carried out by the U.S. Department of State,” the State Department said in a statement obtained by the newspaper.
/jlne.ws/3xerBY4

Ukraine is developing its own glide bombs – the ones it got from the US often don’t work
Sinead Baker – Business Insider
Ukraine is making its own glide bombs, trying to match the Russian weapon that is causing so much damage. The hope is that they will be more effective than the ones it has so far received from the West. Brigadier General Serhii Holubtsov, chief of aircraft of the Air Force Command of the Ukrainian Armed Forces, said Ukraine will start testing the domestically made bombs in the next few weeks. “We are now working on converting and producing our own corrected bombs based on conventional freefall bombs,” he said in a radio interview, according to a translation by Ukrainian Pravda.
/jlne.ws/3yUl70N

Israel/Palestine Conflict

Hamas says it accepts UN-backed Gaza truce plan, US cites ‘hopeful sign’
Daphne Psaledakis and Nidal Al-Mughrabi – Reuters
Hamas accepts a U.N. resolution backing a plan to end the war with Israel in Gaza and is ready to negotiate details, a senior official of the Palestinian militant group said on Tuesday in what the U.S. Secretary of State called “a hopeful sign”. But Qatari and Egyptian mediators have not received formal replies from Hamas or Israel to the U.N.-backed truce proposal, an official close to the talks told Reuters, and both sides suggested on Tuesday the plan fit their clashing goals, raising doubt whether any genuine headway towards a deal had been made.
/jlne.ws/4bWst2t

Blinken Says Fate of Cease-Fire Proposal ‘Is Down to’ Hamas Leader; After the U.N. Security Council backed a cease-fire, Blinken said the world was waiting for Hamas’s leader in Gaza to respond.
The New York Times
A day after the United Nations Security Council endorsed a U.S.-backed cease-fire proposal for Gaza, the world is waiting for Hamas’s leader to respond, Secretary of State Antony J. Blinken said on Tuesday. Putting the onus directly on Hamas’s top official in Gaza, Yahya Sinwar, Mr. Blinken, speaking to reporters in Tel Aviv, asked whether the group would act in the best interests of the Palestinian people by accepting the deal. At least, he said, it would pause the fighting and allow more humanitarian aid to flow into Gaza.
/jlne.ws/4aWNzfV

Exchanges, OTC and Clearing

Caution – fake videos of NSE MD and CEO Shri Ashishkumar Chauhan recommending stocks
National Stock Exchange of India
We have observed the use of face / voice of Shri Ashishkumar Chauhan, MD & CEO NSE and NSE logo in a few investment and advisory audio and video clips falsely created using technology. Such videos seem to have been created using sophisticated technologies to imitate the voice and facial expressions of Shri Ashishkumar Chauhan, MD & CEO of NSE. Investors are hereby cautioned not to believe in such audio and videos and not follow any such investment or other advice coming from such fake videos or other mediums. It may be noted that NSE’s employees are not authorised to recommend any stock or deal in those stocks.
/jlne.ws/3VDv2B1

Miami International Holdings Reports Trading Results for May 2024; YTD Options and Equities Volumes Reach Record Levels
MIAX Exchange Group
Miami International Holdings, Inc. (MIH), a technology-driven leader in building and operating regulated financial markets across multiple asset classes and geographies, today reported May 2024 trading results for its U.S. exchange subsidiaries – MIAX, MIAX Pearl and MIAX Emerald (together, the MIAX Exchange Group), and Minneapolis Grain Exchange (MGEX).May 2024 and Year-to-Date Trading Volume and Market Share Highlights. Total multi-listed options volume for the MIAX Exchange Group reached a monthly total of 130.4 million contracts, a 7.4% decrease year-over-year (YoY). May 2024 market share reached 14.7%, a 9.9% decrease YoY. Total year-to-date (YTD) volume reached a record 696.0 million contracts, a 1.2% increase from the same period in 2023.
/jlne.ws/3yTswgN

Performance Bond Requirements: FX and Interest Rate Margins – Effective June 11, 2024
CME Group
As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago Mercantile Exchange Inc., Clearing House Risk Management staff approved the performance bond requirements for the following products listed in the advisory at the link below. The rates will be effective after the close of business on June 11, 2024.
/jlne.ws/45lm66c

Euronext Tech Leaders welcomes 11 new companies on the occasion of its 2024 annual review
Euronext
Launched in June 2022, Euronext Tech Leaders now counts over 110 companies
The segment includes Tech companies from across Europe and is designed to strengthen the European Tech industry. Euronext today announced the results of the annual review of the Euronext Tech Leaders segment, leading to 11 new companies joining the segment. These companies, recognised for their significant growth, span various Tech industries including Biotech, MedTech, Pharmaceuticals, Electronics, Hardware and Robotics, Software, and Technology Advisory. The Euronext Tech Leaders index will be updated after markets close on Friday 21 June 2024 with effect from Monday 24 June 2024. The Euronext Tech Leaders segment is reviewed annually, with the next review due to take place in June 2025.
/jlne.ws/3VCmFpf

Regular Constituents Change in KOSDAQ Global Index
KRX
There will be regular constituents change in KOSDAQ Global Index. Change of constituents : 11 added and 9 removed.
/jlne.ws/3VB09Nj

Amendments To The List Of Fees Of Bourse De Montreal Inc. (Effective July 1St, 2024)
Bourse De Montreal
Bourse de Montreal Inc. hereby announces the following amendments to its List of Fees effective July 1st, 2024. The new List of Fees in blackline and clean version is attached for your information. Amendments regarding the extension of the COA fee holiday for PTP members as well as the removal of BAX on the list of fees: Extension of the COA fee holiday for PTP members: Extension of the COA fee holiday from June 30th, 2024 to December 31st, 2024 for eligible PTP members. Removal of BAX from the list of fees: Removing everything related to BAX from the list of fees following the last trading day of the product.
/jlne.ws/4bRIYgr

The Canadian Derivatives Clearing Corporation Announces Launch of Secured General Collateral Notes Program
TMX
The Canadian Derivatives Clearing Corporation (CDCC), Canada’s national central clearing counterparty (CCP) for exchange-traded derivative products and repurchase agreements, today announced the launch of the new Secured General Collateral (SGC) Notes program. SGC Notes are short-term discounted money market instruments developed by CDCC in collaboration with Canadian market participants and designed to meet the demand for the transition from Bankers’ Acceptances (BAs) as a result of the Canadian Dollar Offered Rate (CDOR) cessation.
/jlne.ws/4b2kqjk

TMX Group Equity Financing Statistics – May 2024
TMX Group
TMX Group today announced its financing activity on Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) for May 2024. TSX welcomed 16 new issuers in May 2024, compared with 24 in the previous month and 17 in May 2023. The new listings were 15 exchange traded funds and one closed-end fund. Total financings raised in May 2024 increased 5% compared to the previous month, and were up 120% compared to May 2023. The total number of financings in May 2024 was 37, compared with 58 the previous month and 42 in May 2023.
/jlne.ws/45onaXk

The Moscow Exchange unifies the trading schedule on the foreign exchange market and the precious metals market
MOEX
From June 17, 2024, the Moscow Exchange extends trading in all spot and swap instruments of the foreign exchange market and the precious metals market until 19:00 Moscow time. Extending the period for concluding transactions with currency pairs and precious metals will unify the trading schedule for currencies and precious metals with the instruments of other markets of the Moscow Exchange and will increase the efficiency of transactions of private and institutional investors.
/jlne.ws/4aWmObp

Fintech

Atos Picks Onepoint Over Kretinsky for French Firm’s Bailout; Onepoint’s proposal will keep Atos largely intact as a company; Atos will work to reach a final refinancing agreement by July
Benoit Berthelot – Bloomberg
Atos SE chose a bailout proposal from a group led by David Layani’s Onepoint, its top shareholder, beating out a rival bid from Czech billionaire Daniel Kretinsky for the troubled French IT company. Onepoint’s rescue plan for the troubled French IT company, which includes new equity and reduced debt, has the support of the board and the company will now seek to reach a final agreement with its creditors by July, Atos said in a statement on Tuesday. The Onepoint-led bid was also backed by Paris-based investment firm Butler Industries and digital transformation specialist Econocom Group SE.
/jlne.ws/3KCBuSk

Raspberry Pi shares jump more than a third on first day of trading; Cambridge-based creator of low-cost computers targets £542mn valuation
Stephanie Stacey – Financial Times
Shares in British microcomputer maker Raspberry Pi jumped more than a third on its first day of trading in London, providing a boost for the UK stock market amid a dearth of flotations. The Cambridge-based group on Tuesday confirmed an offer price at the top end of a range of 260p to 280p, implying a market valuation of about £542mn. By lunchtime, shares had risen 36 per cent to 380p in conditional dealing, which is only open to certain institutional shareholders.
/jlne.ws/4elbY1M

FINBOURNE extends integration with Taskize to enhance post-trade efficiency; Expanded integration will enable clients to have reduced resolution times as well as a reduction in risk and human error, increasing operational efficiency and staff capacity.
Wesley Bray – The Trade
Investment data management solutions provider FINBOURNE Technology has expanded its integration with Taskize to enhance post-trade operational efficiency. Taskize allows organisations to manage their post-trade operational workflows more effectively by connecting people and processes across various organisations, helping resolve IBOR and ABOR post-trade exceptions.
/jlne.ws/3yZKD4T

Elon Musk says he will ban Apple devices if it integrates OS with OpenAI
Reuters
Elon Musk said on Monday he would ban Apple devices at his companies if the iPhone maker integrates OpenAI at the OS level. “That is an unacceptable security violation,” the Tesla CEO said on a post on X. “And visitors will have to check their Apple devices at the door, where they will be stored in a Faraday cage,” he said on the social media platform.
/jlne.ws/3RmNprd

Apple’s AI Evolution Is Not Quite a Revolution
Dan Gallagher – The Wall Street Journal
At least Apple has three more months to try again. The maker of the iPhone, iPad and Mac computer finally lifted the veil Monday on its first generative-artificial-intelligence offerings. As expected, the new capabilities, known broadly as Apple Intelligence, will be tightly woven into the company’s operating system updates coming later this year. Also as expected, they will include a major upgrade for Siri, Apple’s 12-year-old digital assistant that has often been derided as something less than intelligent.
/jlne.ws/3VifIZ4

China risks falling behind in the AI race, but can a cutthroat price war balance the scales?
South China Morning Post
If ever there was doubt about just how much artificial intelligence (AI) has captured the imagination of investors and the public at large, simply look at the rock-star treatment of Nvidia CEO Jensen Huang at Computex in Taipei at the start of June. There he unveiled plans for an annual release cycle of chips that would power generative AI (GenAI), robotics and advanced data centres that he referred to as “AI factories”.
/jlne.ws/3VifLEe

Mistral secures EUR600mn funding as valuation soars to almost EUR6bn; Price tag has tripled since December for Microsoft-backed AI start-up launched one year ago to challenge OpenAI
Tim Bradshaw and Leila Abboud – Financial Times
/jlne.ws/4aWljdh

Apple Intelligence: A Guide to Apple’s AI-In-Everything Strategy; A bunch of AI features are coming to iOS 18, iPadOS 18 and MacOS Sequoia in the fall. Meaningful upgrade or marketing glitz? Our columnist breaks it down.
Joanna Stern – The Wall Street Journal
/jlne.ws/3VDGFYG

Cybersecurity

AI Security Startup Cyberhaven Raises $88 Million in New Funding; The injection comes at a time when others have struggled to attract cash.
Sarah McBride – Bloomberg
AI data-security startup Cyberhaven Inc. said it had raised $88 million in a funding round that values the company at $488 million, showing that companies benefitting from the AI boom can still pull in cash at big mark-ups to previous rounds. The financing comes at a time when many startups are struggling to raise cash. Last quarter, venture capitalists spent just $36.56 billion to fund 2,882 deals, about half as much cash as two years earlier, and completed about one quarter fewer transactions, according to PitchBook data.
/jlne.ws/3Vhyksg

Cryptocurrencies

Senate Bill Could Open Crypto to U.S. Sanctions, but Industry Trying to Head It Off; The industry says a surprise section in a recent spending bill could slam crypto with sanctions threats, but a key Senate office is now meeting with digital assets sector insiders.
Jesse Hamilton – CoinDesk
A provision in the recent spending package from the Senate’s intelligence committee targets crypto ties to terrorism and caught many in the industry off-guard, criticizing it as a flawed approach to a worthy goal. The staff of the panel’s chairman, Sen. Mark Warner, has been meeting with people in the digital assets industry to talk about the provision, sources say. Crypto insiders predict the effort isn’t likely to survive the budget process. A piece of legislation with heavy implications for the digital assets sector made it through the Senate Select Committee on Intelligence’s funding package recently without most in the industry – and many in Congress – apparently aware of it, but industry insiders consider its chances for survival to be limited.
/jlne.ws/3yPUkCM

Bitcoin Rally and ‘Short Memories’ Reignite Everything in Crypto; Crypto MNA activity is revving up, talk of IPOs is increasing; Top token prices are approaching previous all-time highs
Olga Kharif – Bloomberg
Bitcoin’s rally to near a record high is reawakening animal spirits – not just in the cryptocurrency market itself, but in the broader financial world that had left the digital asset sector for dead last year. The change of heart can be seen in the improved outlook for deal flow, highlighted by Robinhood Markets Inc.’s purchase of crypto exchange Bitstamp Ltd. on Thursday, to a resurgence of venture-capital investments to what some analysts are expecting to be record amount of initial public offerings of companies connected to the industry.
/jlne.ws/45izlF0

Ether Investment Products See Largest Weekly Inflows Since March; Ether products inflows totaled $69 million, CoinShares says; Inflows follow SEC move to allow spot-base Ethereum ETFs
Benjamin Taubman – Bloomberg
A surprise decision from the U.S. Securities and Exchange Commission to allow Ether exchange-traded funds likely led to the largest weekly inflows in months into investment products holding the second-largest cryptocurrency, according to CoinShares International Ltd. Investment products worldwide holding Ether saw $69 million in investor inflows in the week ended Friday, according to a report from the digital asset manager and crypto research firm. That’s the highest since March. The SEC unexpectedly ruled on May 23 to advance the approval process for a US Ethereum ETF.
/jlne.ws/3XeOLYV

Robinhood’s Acquisition of Bitstamp Expands Its Global Reach: Architect Partners; Crypto is becoming an increasingly important part of Robinhood’s business, accounting for 20% of total revenue in the first quarter, the report said.
Will Canny – CoinDesk
Crypto is becoming an increasingly important part of Robinhood’s (HOOD) business and, despite receiving a Wells Notice from the U.S. Securities and Exchange Commission (SEC) last month, the trading platform continues to expand its digital assets business, investment bank Architect Partners said in a Friday report. The expansion is evidenced by the recent agreement to buy crypto exchange Bitstamp, the bank said. Architect notes that crypto accounted for 20% of Robinhood’s total revenue in first-quarter 2024. “This acquisition instantly expands global reach to ensure participation regardless of U.S. actions,” the report said.
/jlne.ws/3KH329f

Digital assets and DAOs: new theories of liability
Alex Drylewski, Stuart D. Levi and Daniel Michael – Reuters
Decentralized autonomous organizations (or “DAOs”) are often seen as a critical component of a truly decentralized digital asset project. While there is no single definition for a DAO, the term typically refers to a system of project governance where holders of “governance tokens” can make and vote on proposals relating to governance of a digital asset protocol. A recent and developing legal theory posits that persons holding governance tokens in a DAO can be considered “partners” in a “general partnership” or “unincorporated association.” Under this theory, those token holders are subject to joint and several liability as partners for any legal violations committed by the DAO and other participants on behalf of the DAO.
/jlne.ws/3xkgBYX

Politics

The big threat to dollar dominance is American dysfunction; Don’t greenback in anger
Steven B Kamin and Mark Sobel – Financial Times
In the 1960s, French finance minister Valery Giscard d’Estaing lamented the dollar’s “exorbitant privilege”, longing for an international monetary system less reliant on the dollar and the shackles of US economic policy. In 2009, Governor Zhou Xiaochuan of the People’s Bank of China called for de-dollarisation and a multipolar regime with an internationalised renminbi. Emerging markets joined the chorus, criticising the spillovers from Fed monetary policy.
/jlne.ws/3yYztNR

Tories Pay the Price for the Harms of Brexit; The Conservative government has damaged Britain’s most important trading relationship – and hurt itself immensely in the process.
Adrian Wooldridge – Bloomberg
This is part of a series on what 14 years of Tory rule have delivered for Britain’s economy, society and standing in the world. The challenges awaiting the next government are numerous. Most of the time, trade is an arcane subject only of interest to trade specialists and assorted business lobbies – and, of course, the editors of The Economist. But every now and again, it shifts from the far periphery to the molten core of British politics. This happened in the 1840s with the abolition of the Corn Laws, in the 1900s with the advent of imperial preference, in the 1970s with Britain’s entry into the European Common Market and then again in 2016 with Brexit.
/jlne.ws/45rffsg

Oil and gas jobs dominate Scotland’s election battle; SNP claims Labour’s tax plans threaten to turn Aberdeen into ‘an industrial wasteland’
Lukanyo Mnyanda and Simeon Kerr – Financial Times
The future of Scotland’s oil and gas industry has taken centre stage in the UK election campaign, as parties seek to persuade workers they can prevent mass job losses by delivering a “just transition” to renewables. Uncertainty over the business environment has raised concerns among industry groups that as many as 100,000 jobs are at risk because of the 75 per cent windfall tax regime on oil and gas producers brought in by the Conservatives that would be increased by an incoming Labour administration.
/jlne.ws/3Rmdg2u

Green Wipeout Means Fights Ahead to Keep Europe’s Climate Goals; Greens emerge as biggest losers in EU Parliament elections; New climate target for 2040 will test lawmakers green resolve
Ewa Krukowska – Bloomberg
This weekend’s European Union elections marked the end of the bloc’s greenest parliament ever after concerns over everything from climate policies to migration gave the populists a boost. The Greens, whose rise five years ago helped the 27-nation bloc embrace the world’s most ambitious climate strategy, emerged in all but tatters from a ballot that ended on Sunday. Climate-friendly liberals also suffered a massive blow from voters while far-right nationalist parties strengthened their position in countries from Germany to Italy.
/jlne.ws/3VbJ6zW

Macron Resignation Rumors Denied After French Bonds Tumble; Move extends selloff spurred by surprise call for snap vote; Person close to president denies that Macron plans to resign
Alice Gledhill and Ania Nussbaum – Bloomberg
Rumors that President Emmanuel Macron was preparing to resign were swiftly denied after speculation over his future spurred a sharp selloff in French government bonds. Macron hasn’t been discussing a potential resignation, a person close to the French President said on Tuesday after a radio station reported about the possibility. He is set to hold a press conference on Wednesday to set out his campaign, the person added.
/jlne.ws/45h8M2V

Emmanuel Macron Plays Fast and Loose With Investor Faith; Portfolio managers are concerned about the fiscal direction France is taking.
Marcus Ashworth – Bloomberg Opinion
French President Emmanuel Macron has taken a serious gamble in calling early parliamentary elections. The consequences of putting politics above economic stability could be profound. Financial markets don’t like unnecessary or unexpected political volatility, especially at the core of the European Union. The electorate only gets to vote at elections; financial markets get to vote every day, and so far they’re giving a thumbs down to Macron’s ploy.
/jlne.ws/3VmsuWm

EU Populists Are Blind to the Real Threat to the Bloc; The Old Continent’s role in the global economy is shrinking as the far right stokes anger.
Max Hastings – Bloomberg
/jlne.ws/4cg5NtP

The rule of law in Hong Kong is in grave danger; Many judges have lost sight of their traditional role as defenders of the liberty of the subject
Jonathan Sumption – Financial Times
/jlne.ws/3xaMjYM

China has a ‘near monopoly’ on many critical minerals. JPMorgan says it could be the next battleground with the U.S.
Will Daniel – Fortune
/jlne.ws/4chTEEz

Regulation

Singapore Ramps Up Scrutiny of Family Offices, Hedge Funds
David Ramli and Chanyaporn Chanjaroen – Bloomberg
Singapore authorities are demanding more information from family offices and hedge funds while stepping up closures of dormant firms after a string of scandals highlighted cracks in the financial hub’s oversight. The government’s push to tighten various investment regimes has accelerated since March, with agencies setting out additional requirements that must be met in the coming months and ramping up the removal of inactive corporate entities, according to people familiar with the matter.
/jlne.ws/4elMXU7

The US bankruptcy scandal playing out in a Texas border town; Once one of the most powerful judges in US restructurings, David Jones is now embroiled in a racketeering case along with two top law firms
Sujeet Indap – Financial Times
Judge David Jones returned to a federal court in Texas last Thursday. But the man who was once a kingmaker jurist in the US’s biggest corporate restructurings was not perched on the bench in Houston, wearing his regal robes. Rather he was 350 miles away in a courtroom in an dusty town near the Mexico border, Del Rio, sitting in the back row. Once known for his imperious temperament, he now watched quietly as a handful of the 15 or so lawyers in the room did the talking.
/jlne.ws/3VyhhTX

Achieving Growth and Progress: Statement of Commissioner Caroline D. Pham at the Global Markets Advisory Committee June 4 Meeting
CFTC
Good morning. It’s great to convene another Global Markets Advisory Committee (GMAC) meeting in New York. I want to start by thanking everyone for taking the time to travel here-from all across the United States, and as far away as London, Frankfurt, Tokyo and more-to share your expertise with the GMAC. I know that a lot of time and work goes into preparing for these meetings, so I also want to thank the GMAC members and Subcommittee members for their service, and our presenters for joining us today. The GMAC’s recommendations have real impact and add value to not only the Commission, but also to the international policy dialogue. I especially want to recognize the GMAC’s leadership team for your continued stewardship of the GMAC, and all the Subcommittee workstream leads for their tireless efforts. We have a truly impressive group of leaders to examine the issues.
/jlne.ws/3RmqSdU

FMA opens consultation on proposed standard conditions for Derivatives Issuers
FMA
The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko – is seeking feedback on potential changes to the standard conditions imposed on Derivative Issuer (DI) licences. The changes relate to leverage and the suitability of investors for derivative trading. The proposed changes have been identified in the FMA’s 2020 Derivatives Issuer Sector Risk Assessment (SRA) and subsequent monitoring of the sector.
/jlne.ws/3VbLaba

Restrictions placed on Motmaen Limited
FCA
On 15 May 2024, we placed restrictions on Motmaen Limited (‘Motmaen’), removing its ability to provide money transfer payment services. Motmaen is a small payment institution that is registered to provide money remittance (ie money transfer) services. We removed its ability to provide these payment services.
/jlne.ws/3VliVH7

Monitoring Report on Regional Banks’ Securities Investment Management
FSA
The Financial Services Agency (FSA), from the perspective of maintaining the stability of the financial system in Japan, conducts intensive monitoring of regional banks’ securities investment, targeting those with large risk-taking in securities investment.
/jlne.ws/4b3psw2

Launch of free online “SEBI-Investor Certification Examination”
SEBI
The Securities and Exchange Board of India (SEBI) has launched a free, voluntary online “SEBI -Investor Certification Examination.”
/jlne.ws/4ehvOdY

Investing and Trading

Canadian Investor Inspired by Warren Buffett Sinks After Founder Sells; Stock in Andrew Wilkinson’s holding company Tiny fell 16%; Founders left executive roles, Wilkinson set to sell shares
Thomas Seal – Bloomberg
Canadian holding company Tiny Ltd plunged 16% on Monday after its founders stepped down as co-CEOs and one of them said he’d sell millions of shares. Tiny mainly invests in internet companies. It said on Thursday that co-founders Andrew Wilkinson and Chris Sparling stepped down effective immediately to become co-chairmen, adding they’d remain “actively involved.”
/jlne.ws/3KFqWli

The clock is ticking for ‘Roaring Kitty’ to lock in gains as GameStop’s price declines
Saqib Iqbal Ahmed – Reuters
The clock is ticking for Keith Gill, the stock influencer known on YouTube as “Roaring Kitty,” to lock in gains on his options position in GameStop as the company’s share price wobbles and the expiration date for the contracts draws closer. Shares of GameStop tumbled 12% on Monday to $24.83. It was the second straight session of losses for the video game retailer, whose shares fell 40% on Friday after Gill’s first livestream in three years failed to boost their price following the announcement of a more than $3 billion stock offering.
/jlne.ws/3x90iyh

Roaring Kitty’s GameStop position is in the money
Suzanne O’Halloran – Fox Business
GameStop shares fell for the second straight session Monday, down over 49%, notching the worst two-day stretch since February 3, 2001, as tracked by Dow Jones Market Data Group. Still, “Roaring Kitty,” also known as Keith Gill, is in the money with his GameStop holdings. Gill, via his Reddit handle, Superstonk/Deep F-ing Value, posted his latest account performance on Monday. FOX Business, in coordination with Dow Jones Market Data Group, crunched the numbers.
/jlne.ws/45gaUYR

Meta’s 450% Surge Offers Potential for Next Big Tech Stock Split; Meta is the only Magnificent Seven member to never split stock; Nvidia’s recent split has put the practice back in focus
Carmen Reinicke – Bloomberg
An uptick in the number of companies enacting stock splits this year has Wall Street looking at who could be next – with some analysts pointing to Meta Platforms Inc. Meta is the only stock in the so-called Magnificent Seven that hasn’t ever split shares. And, though the stock is off all-time highs hit in April, it’s up more than 450% from a 2022 trough.
/jlne.ws/3XhUxc2

Frontier emerging markets lure investors back with high yields; Foreign buyers attracted to the local currency debt of former pariahs such as Kenya and Pakistan
Joseph Cotterill – Financial Times
Investors are flocking to the local currency bonds of one-time emerging market pariahs such as Kenya and Pakistan, attracted by these countries’ economic turnarounds and higher interest rates. Egyptian, Pakistani, Nigerian, Kenyan and other countries’ local currency debts have been some of the most unloved assets – short of outright defaulted debt – in emerging markets in recent years, as currency crises have ravaged their economies.
/jlne.ws/3x8Zr0x

Environmental, Social and Corporate Governance

Wall Street Ties to Amazon Depletion Mapped Out in New Report; Stand.earth singles out six banks for fossil-fuel financing; Amazon rainforest is susceptible to increasing number of fires
Frances Schwartzkopff and Saijel Kishan – Bloomberg
Some of Wall Street’s biggest banks aren’t fully accounting for the risks of doing business with oil and gas companies operating in the Amazon rainforest, according to a study by conservationists. The report, published by Stand.earth Research Group, identifies six banks it says are responsible for almost half of all direct financing for oil and gas operations in Amazonia over the past 20 years.
/jlne.ws/3xkUxgP

*****Here is this story from The Guardian.

Japan’s Nippon Life announces transition finance guidelines
Leika Kihara – Reuters
Japan’s Nippon Life Insurance on Tuesday announced guidelines for extending transition finance loans to steelmakers and utilities, which it hopes will serve as a benchmark for domestic lenders and businesses. The move underscores a push by Japan, which aims to achieve carbon-neutrality by 2050, to promote transition finance given its economy’s heavy reliance on high-emitting industries like shipping, chemicals and steel.
/jlne.ws/45mhOvA

Chemical Makers Sue Over Rule to Rid Water of ‘Forever Chemicals’; Industry groups said the E.P.A. had exceeded its authority in requiring the drinking-water cleanup. The chemicals, known as PFAS, are linked to cancer and health risks.
Hiroko Tabuchi – The New York Times
Chemical and manufacturing groups sued the federal government late Monday over a landmark drinking-water standard that would require cleanup of so-called forever chemicals linked to cancer and other health risks. The industry groups said that the government was exceeding its authority under the Safe Drinking Water Act by requiring that municipal water systems all but remove six synthetic chemicals, known by the acronym PFAS, that are present in the tap water of hundreds of millions of Americans.
/jlne.ws/4aShd60

Nuclear Power Is Hard. A Climate-Minded Billionaire Wants to Make It Easier. Work is starting in Wyoming coal country on a new type of reactor. Its main backer, Bill Gates, says he’s in it for the emissions-free electricity.
Brad Plumer – The New York Times
Outside a small coal town in southwest Wyoming, a multibillion-dollar effort to build the first in a new generation of American nuclear power plants is underway. Workers began construction on Tuesday on a novel type of nuclear reactor meant to be smaller and cheaper than the hulking reactors of old and designed to produce electricity without the carbon dioxide that is rapidly heating the planet.
/jlne.ws/3Vm8148

Solar-Powered Planes Take Flight; The light, uncrewed aircraft could provide surveillance and telecommunications that balloons and satellites can’t-and stay aloft for months
Phred Dvora – The Wall Street Journal
Imagine airplanes powered only by energy from the sun, some so light they can be launched from the ground by hand, others gathered in giant “parking lots” in the stratosphere. Those are the types of aircraft being developed now that are bringing the dream of solar- powered flight closer to reality, with planes that act very differently from the jetliners of today.
/jlne.ws/3VlDzXB

A New Way to Make Green Steel; To meet demand from automakers and builders, startups are processing iron ore without using fossil fuels
Amrith Ramkumar – The Wall Street Journal
/jlne.ws/3xjKWH6

Miami Faces Flood Threat With Heavy Rain Poised to Lash Florida; Moisture from Gulf of Mexico will bring downpours to the state; High pressure in US and Caribbean pinning storms over Florida
Brian K Sullivan – Bloomberg
/jlne.ws/3z6NFUP

Iceland Government Issues License to Continue Whaling in 2024; Fisheries minister licenses the island’s only whaling firm; Hvalur hf is allowed to kill 128 fin whales until year-end
Ragnhildur Sigurdardottir – Bloomberg
/jlne.ws/3xaHHlq

Italy’s De Nora says orders already equal new electrolyser gigafactory output
Francesca Landini – Reuters
/jlne.ws/4bWjka9

Sainsbury’s to cut almost 700 tonnes of plastic packaging on meat and fish; Supermarket Sainsbury’s is replacing plastic trays across more than 40 of its fish and chicken trays, in a move that will reduce its annual plastic production by 694 tonnes.
Sarah George – edie
/jlne.ws/3KDWB6L

Eku Energy aims to expand its global battery storage to 9 GWh by 2028
Yuka Obayashi – Reuters
/jlne.ws/3Xk9ZVo

New Zealand Set to Scrap Oil, Gas Exploration Ban in Second Half
Sunil Jagtiani – Bloomberg
/jlne.ws/3XeH8S3

Ukraine Sees More Gas Traders Tapping Storages by September; Naftogaz is in talks with more than 100 firms, CEO says; Company officials visit Berlin for Ukraine Recovery Conference
Petra Sorge – Bloomberg
/jlne.ws/3VCxQ1e

Why this summer’s forecast is bad news for the US after an exceptionally disastrous start to the year
Ella Nilsen and Mary Gilbert – CNN
/jlne.ws/3Vm4aUN

Where the Water Doesn’t Flow: Thousands Across Alabama Live Without Access to Public Water; In rural Marion County, some residents do the only thing they can think to do: call their legislator and cry.
Lee Hedgepeth – Inside Climate News
/jlne.ws/45gat0F

California looks to seize profits from Big Oil in climate change lawsuit; Consumer protection and advertising laws used to pursue civil suit
Aime Williams and Jamie Smyth – Financial Times
/jlne.ws/3KITIkY

Institutions

Some Nordic retail brokers allow clients to vote at Tesla AGM
Louise Rasmussen – Reuters
Some Nordic retail brokerages are allowing clients to vote at Tesla’s annual general meeting (AGM) this week, departing from their regular practice, after significant interest from investors and online comments from CEO Elon Musk. The June 13 AGM is shaping up as a referendum on Musk’s leadership, after a judge invalidated the CEO’s $56 billion pay package in January, calling it an unfathomable sum.
/jlne.ws/4bWCCfw

Spectrum Markets launches ETFs trading for European retail investors; German market maker ICF BANK AG will be the exclusive liquidity provider for ETFs on the venue.
Annabel Smith – The Trade
Spectrum Markets has launched exchange traded funds (ETFs) trading for European retail investors on its venue. Around 1,700 instruments have been added to Spectrum’s product universe from more than 30 fund providers, Spectrum confirmed in a statement. “ETFs are one of the most exciting product classes right now, and so Spectrum is pleased we were able to instantly respond to meet this demand,” said Nicky Maan, CEO of Spectrum Markets.
/jlne.ws/4aZCTwU

Barclays branches across UK targeted by protesters
Emma Grimshaw – BBC News
Barclays bank branches in England and Scotland have been covered in red paint and had windows smashed as part of protests by a pro-Palestine group. Up to 20 buildings have been targeted, according to the group Palestine Action. It said the protests were carried out to “demand the bank divests from Israel’s weapons trade and fossil fuels”. A spokesperson for Barclays said: “While we support the right to protest, we ask that campaigners do so in a way which respects our customers, colleagues and property.”
/jlne.ws/3yUeX0K

JPMorgan hires new chief technology officer, memo says
Nupur Anand – Reuters
JPMorgan Chase hired former PayPal executive Sri Shivananda as its new chief technology officer (CTO), the bank said in a memo on Monday, the latest senior hire tasked with deploying some of its $17 billion tech budget. Shivananda will start later this month and succeed A.J. Lang, who announced his plans to retire earlier this year, according to the memo seen by Reuters. He will report to Lori Beer, the bank’s global chief information officer (CIO), who also sits on the operating committee.
/jlne.ws/4ekKGbN

Pimco Warns of More US Regional Bank Failures on Property Pain
Laura Benitez – Bloomberg
Pacific Investment Management Co. expects more regional bank failures in the US because of a “very high” concentration of troubled commercial real estate loans on their books. “The real wave of distress is just starting” for lenders to everything from malls to offices, John Murray, Pimco’s head of global private commercial real estate team, said in an interview. His division sits within Pimco’s $173 billion alternatives business.
/jlne.ws/45jk0E0

PR Founder-Turned-VC Investor Bucher Raises $150 Million for New Fund; This is the largest fund yet for Masha Bucher’s firm, Day One Ventures.
Paayal Zaveri – Bloomberg
Day One Ventures, a venture capital firm founded by former PR entrepreneur Masha Bucher, has raised $150 million for a new fund, the firm plans to announce Tuesday. Founded in 2018, Day One focuses on startups in their early stages, investing initial checks from $1 million to $2 million. Its portfolio includes Worldcoin, the cryptocurrency startup co-founded by Sam Altman, legal services company DoNotPay Inc. and AI assistant You.com.
/jlne.ws/3RmksM4

Bond Investors Are Paying Up Again for Active Fund Managers; About 74% of active funds beat their benchmarks in the past 12 months
Vicky Ge Huang – The Wall Street Journal
/jlne.ws/3RnWsbp

Work & Management

Graduate jobseekers navigate AI effect on gender equality; Other tech booms advanced careers of computer science students, who were mainly male – but this one could play out differently
Brooke Masters – Financial Times
As this year’s graduates prepare to enter the workforce, many are either anxious or flat out terrified about the impact of artificial intelligence – particularly large language models such as ChatGPT – on their careers. According to a poll by the BestColleges website, six in ten US college students worry that the use of AI in their studies is diminishing the value of earning a degree. Even worse, more than half expect that growing use of AI in the workplace will further devalue the worth of their studies to potential employers.
/jlne.ws/3z0GOMY

Why cross-company mentoring allows freer discussion; Pairing with a mentor from another business or even a different industry leads to fewer preconceptions and more new insights
Nikou Asgari – Financial Times
Mentoring is widely acclaimed as an effective way of encouraging and retaining female employees. Companies in industries ranging from tech and finance to infrastructure and retail have all launched their own programmes. These are usually internal, where one employee pairs with another. But an alternative approach is also proving popular: cross-company and cross-industry schemes. Proponents argue that an unbiased, external mentor allows women to speak more freely about the challenges they face when entering or progressing in the workplace.
/jlne.ws/3xeUD9U

Wellness Exchange

Advisory Panel of Experts Endorses F.D.A. Approval of New Alzheimer’s Drug; The modest benefits of the treatment, donanemab, made by Eli Lilly, outweigh the risks, the panel concluded unanimously.
Gina Kolata and Pam Belluck – The New York Times
A committee of independent advisers to the Food and Drug Administration voted unanimously on Monday that the benefits outweigh the risks of the newest experimental drug for Alzheimer’s disease. Alzheimer’s afflicts more than six million Americans. It has no cure, and there is no treatment or lifestyle modification that can restore memory loss or reverse cognitive decline.
/jlne.ws/3yXmpYW

EU secures 40mn doses of bird flu vaccine as cases rise; Health authorities move to protect farmworkers and other high-risk groups after recent outbreaks
Daria Mosolova and Ian Johnston – Financial Times
The European Commission has signed a deal for more than 40mn doses of a vaccine against bird flu for 15 countries across the continent, as member states grapple with a rise in cases of the respiratory virus. The EU’s executive arm announced the contract on Tuesday, procuring up to 665,000 vaccine doses – which can be adapted to any bird flu strain – from Australia-based manufacturer CSL Seqirus. The deal includes a provision for a further 40mn vaccines over the next four years.
/jlne.ws/4ciG9EX

Regions

Australian Supermarket Coles Limits Egg Buying After Bird Flu Outbreak; Highly pathogenic strain of virus has been found on fifth farm; Over 500,000 chickens have been destroyed in Victoria state
Keira Wright – Bloomberg
Major Australian supermarket chain Coles Group Ltd. is putting limits on egg purchases on fears of shortages as authorities try to counter the spread of avian influenza virus. Customers in all states except Western Australia will be limited to buying two egg cartons a day, Coles said in a statement. The move comes after the highly pathogenic H7N3 strain of avian influenza was detected at a fifth farm in Victoria last week. Over half a million chickens have been euthanized in the state and about 450,000 eggs are being destroyed every day to contain the spread of the virus, the Australian Broadcasting Corp. reported.
/jlne.ws/3RjciE8

Data leak at SoftBank joint venture sparks blame game between Japan and South Korea; Japanese officials say South Korea’s Naver should cut stake in Line Yahoo on security grounds
David Keohane and Kana Inagaki, Christian Davies and Song Jung-a – Financial Times
A series of data leaks from a $20bn internet company formed by Japan’s SoftBank Corp and South Korea’s Naver is straining relations between allies and showing how government concerns over digital security can curb tech groups’ international ambitions. Japan and South Korea have been at loggerheads since Line Yahoo suffered network breaches that were blamed on insecure systems at Seoul-based Naver, its joint owner.
/jlne.ws/4bWAWCK

Vietnam to let companies import gold for first time in years, industry official says
Ashitha Shivaprasad and Brijesh Patel – Reuters
Vietnam is expected to allow companies to import gold for the first time in over a decade, as it aims to bridge the widening gap between local prices and international benchmarks, an industry official told Reuters. The Vietnam Gold Traders Association (VGTA) has been in protracted talks with the government over measures to correct the imbalance in supply and demand of gold, Huynh Trung Khanh, the association’s vice chair said.
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Philippine cbank says Q3 interest rate cut still on table
Anisha Sircar and Divya Chowdhury – Reuters
The Philippine central bank is sticking with its view that interest rates could be lowered as early as August despite an uptick in inflation last month, saying it was happy with where consumer prices were going. Speaking in the Reuters Global Markets Forum, Bangko Sentral ng Pilipinas Governor (BSP) Eli Remolona said there was chance the central bank could ease monetary policy in the third quarter, but it would remain data-dependent.
/jlne.ws/3VDlKEM

Taiwan set to hold rates steady amid persistent inflation worries
Reuters
Taiwan’s central bank is expected to keep its policy interest rate unchanged this week and to stay the course until late next year as it deals with persistent concerns over inflation, according to economists in a Reuters poll. The central bank, in a surprise move at its last board meeting in March, hiked the benchmark discount rate (TWINTR=ECI), to 2% from 1.875%, wary of continued inflationary pressures and ahead of a rise in electricity prices.
/jlne.ws/4bSmn33

Emissions-Heavy Agriculture Wins Climate Reprieve in New Zealand; Government confirms sector won’t join emissions trading system; Agriculture accounts for about half of the country’s emissions
Tracy Withers – Bloomberg
New Zealand confirmed the agriculture sector, which accounts for about half the nation’s greenhouse gas emissions, will be excluded from a national carbon pricing system. Farmers had protested against previous proposals to impose a regulated price on methane, carbon dioxide and nitrous oxide emissions from late 2025, arguing it would force some in the industry off their land.
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Dubai Takes on Abu Dhabi in Race for Supremacy in Family Offices; Billionaires’ private firms seek discretion, peer networks; Wealth havens can also attract fraudsters and ‘wannabes’
Devon Pendleton – Bloomberg
In the lobby of the Four Seasons Abu Dhabi, steps away from the offices of billionaires Ray Dalio and Changpeng “CZ” Zhao, men in white thobes and tailored suits cluster in hushed conversation around low tables strewn with tiny cups of Arabic coffee. Seats in the hotel’s lounge pit are limited, and for good reason: It’s become the region’s nerve center for the obscure world of private capital. “Every Tom, Dick and Harry around the world is trying to come here,” said Ryan Lemand, co-founder and chief executive officer of Abu Dhabi-based Neovision Wealth Management. “It’s like the gold rush.”
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Cut off from the West, Putin says almost 40% of Russian trade turnover is now in rubles
Sam Meredith – CNBC
Russian President Vladimir Putin said Friday that nearly 40% of the country’s trade turnover is now in rubles as the share conducted in dollars, euros and other “non-friendly” Western currencies has fallen away. Speaking at the St. Petersburg International Economic Forum (SPIEF), Putin said countries “friendly to Russia” were the ones that deserved special attention as they will define the future of the global economy, “and they already make up three-quarters of our trade volume.”
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Frontier emerging markets lure investors back with high yields; Foreign buyers attracted to the local currency debt of former pariahs such as Kenya and Pakistan
Joseph Cotterill – Financial Times
Investors are flocking to the local currency bonds of one-time emerging market pariahs such as Kenya and Pakistan, attracted by these countries’ economic turnarounds and higher interest rates. Egyptian, Pakistani, Nigerian, Kenyan and other countries’ local currency debts have been some of the most unloved assets – short of outright defaulted debt – in emerging markets in recent years, as currency crises have ravaged their economies.
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Private Bankers Descend on Booming Lisbon to Tap Wealthy Expats; Portugal’s tax breaks, golden visa and sun-soaked beaches are luring overseas millionaires wanting to settle there.
Henrique Almeida and Joao Lima – Bloomberg
Not too long ago, Bruno de Carvalho used to pay EUR8 ($8.60) for a meal at a Portuguese restaurant across the street from his office in central Lisbon. Now a South American tapas and ceviche joint has taken its place, where a degustation menu costs almost 10-times as much. It’s one of the signs of rising wealth and changes sweeping Portugal’s booming capital, according to the 62-year-old local country head for Swiss private bank Edmond de Rothschild, as a wave of affluent foreigners flock to the Iberian nation, lured by its sun-soaked beaches, tax breaks and a golden visa program. Though some of those incentives are being rolled back, they remain available to rich applicants and continue to draw well-healed expatriates.
/jlne.ws/3XjVlNI

Canada defends capital gains tax hike, says it will keep borrowing low
Reuters
A planned hike in the capital gains tax for the wealthiest will help keep Canada’s borrowing low and fund social programmes, Finance Minister Chrystia Freeland said on Monday. “We know now is the time to invest in Canada and Canadians,” Freeland told a press conference. “The responsible way to pay for those investments is to ask those at the top to contribute a little bit of money.”
/jlne.ws/3KDULCT

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The Stock Market Has Rarely Been This Sleepy

Lead Stories The Stock Market Has Rarely Been This Sleepy Gunjan Banerji - The Wall Street Journal It's eerily calm out there in the stock market. The Cboe Volatility Index, or VIX, dropped below 12 last week, a nearly five-year low. The gauge, based on options prices...

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