EU Revives Bid to Build Capital-Markets Union; Covid Will Keep Spawning Variants Till the World Is Immune

Nov 26, 2021

First Read

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$54,406/$300,000 (18.1%)

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Hits & Takes
John J. Lothian & JLN Staff

Welcome to Black Friday, when that is supposed to mean you are going to shop online for the great sales being offered just today. However, Black Friday is also a reference to the crash of the U.S. gold market on September 24, 1869, and the Dow Jones Industrial Average is down about 800 points this morning before the opening. Combining the two, this is your chance to go shopping for some stocks that might only be on sale at these prices today. Bitcoin prices dropped 20% as well. 

BookAuthority has issued its recommendations on the “31 Best New Finance Books To Read In 2022” and Robin Wigglesworth’s “Trillions: How a Band of Wall Street Renegades Invented the Index Fund and Changed Finance Forever” is rated as No. 1 on the list. The ratings are based on recommendations by thought leaders and experts, those being two separate groups of people.

JPX has created a new subsidiary, JPX Market Innovation & Research, Inc., a “total smart exchange where anyone can trade any product in a secure and easy way, and as core strategies within that aim, has worked on diversifying and updating data and index services by utilizing IT innovations and new partnerships, and on bolstering IT system foundations and developing human resources to support the future of our business and society.”

There were more women hired by the Financial Services Agency, the Japanese regulator, than men in the latest class of hires. Bloomberg reported the FSA hired eight women in the 14 hires of the latest class of bureaucrats.

Eurex expanded its FX offerings to include seven new European futures on Scandinavian currencies.

The Aquis Exchange and the New Zealand Financial Markets Association have a new chair and chief executive respectively. Glenn Collinson has been appointed to succeed Niki Beattie as chair of the Aquis Exchange and Sarah Vrede has accepted the role of chief executive of the New Zealand Financial Markets Association.

HKEX is hosting the HKEX Green Asia Summit 2021, Path to Net Zero on Thursday, December 9, 2021 as a virtual event from 9 a.m. to 4:20 pm (GMT+8). The event will be in English and Putonghua. For more information and to register, click HERE.

Law enforcement officials are reporting that criminals are increasingly using bitcoin ATMs for “drug trafficking, money laundering and a variety of fraud,” CNBC reported. The machines, which are located in convenience stores, allow customers to buy bitcoin and other crypto currencies using cash. Who would have thought this would happen?

Bloomberg is reporting that “Paris Plans Electric Flying Taxi Routes in Time for Olympics.” France reportedly will begin testing electric air taxis in the next few months at a location outside Paris in order to create two dedicated flight paths to transport passengers for the 2024 summer Olympics. No word on if the taxi drivers/pilots will be as rude as they are famous for being. (For what it is worth, I will say that the only taxi I took in Paris had a very polite and helpful driver.)

Magdalena Andersson’s tenure as Sweden’s first female prime minister lasted less than Anthony Scaramucci did in his White House job. She lasted about seven hours in the job before her coalition government failed. — NY Times

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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It is the last chance to register for the Global Investor Group’s DW London in-person conference taking place December 2nd. “DW London 2021 gives the leaders of the futures and options industry a chance to exchange ideas, examine the world’s hottest regions and products, and allow specialists to discuss the challenges of the markets,” the group says. You can go here for the full agenda and to register. ~SR

The once-staid Morningstar has moved into the digital space. On Thanksgiving Day, the firm announced that Morningstar Indexes is working with DIA, a London-based data platform for decentralized finance. Morningstar will calculate “regulatory compliant” reference prices and indexes that would enable investors to benchmark digital assets, including bitcoin, under the umbrella of DIAx. ~SC

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Jamie Dimon walks back his quip about China’s Communist Party.
Lauren Hirsch – NY Times
JPMorgan Chase’s chief executive, Jamie Dimon, expressed remorse on Wednesday for saying the bank would outlast China’s Communist Party. “I regret and should not have made that comment,” Mr. Dimon said in a statement. “I was trying to emphasize the strength and longevity of our company.”
/nyti.ms/3nTi4xQ

***** Mr. Dimon was showing a hint of personality by telling that joke about the Chinese Communist Party. Bankers are not supposed to have personality. They are supposed to be staid, sober and boring.~JJL

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RIP Mr. Goxx: Cryptocurrency trading HAMSTER that outperformed Warren Buffet’s portfolio by running on ‘intention wheel’ to choose currencies DIES of unknown causes; Mr. Goxx, a hamster shot to fame in June for its ability to buy and sell cryptocurrencies; The hamster’s unnamed owner announced the pet passed away Monday morning due to unknown causes; Mr. Goxx used a wheel and tunnels to make trading decisions; The hamster even outperformed Warren Buffet’s portfolio in a single day
Stacy Liberatore – Daily Mail
A hamster, named Mr. Goxx, that quickly shot to fame for its skill in crypto trading has tragically died due to unknown causes. Mr. Goxx’s owner, who is not named, shared the sad news Wednesday in a post on the animal’s twitter account.
/bit.ly/3rg1wlR

*****Strange rodent story of the day. It was a ROUTA, or Rodent of Unusual Trading Abilities, for you Princess Bride fans. Of course Mr. Buffett outperformed Mr. Goxx in the one category that counts most, living the longest. ~JJL

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Wednesday’s Top Three
Our top story Wednesday was Did You Hear the One About Jamie Dimon and China’s Communist Party? from Bloomberg. Second was FIA Expo 2021 Video: ‘Everyone Is Threatened’ by Disintermediation, the John Lothian News video interview with Bob Fitzsimmons of Wedbush. Third was The World’s Largest Bitcoin Fund Is Troubled. Here’s Why, about the Grayscale Bitcoin Trust, from Barron’s.

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MarketsWiki Stats
26,664 pages; 236,391 edits
MarketsWiki Statistics

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Lead Stories

EU Revives Bid to Build Capital-Markets Union
Aoife White and Jorge Valero – Bloomberg
The European Commission will make a fresh push today in its six-year crusade to create a capital-markets union. The piecemeal approach to bringing down barriers between national financial services will continue with a proposal to create a consolidated tape to integrate data from various trading venues, a new single-access point to gather information on European companies, and changes to facilitate setting up European long-term investment funds, according to documents we’ve seen. Meanwhile, the Commission will largely keep in place the cross-border delegation system for investment fund managers, sparing London some post-Brexit pain. Next year, it intends to publish long-awaited proposals to harmonize corporate-insolvency rules.
/bloom.bg/3xulA51

Covid Will Keep Spawning Variants Till the World Is Immune; Rich nations have been lulled into a false sense of security by their high vaccine rates. When barely half the world’s population has had a dose, the odds are still too long.
David Fickling – Bloomberg
There’s a grim inevitability to the fact that the latest concerning strain of the Covid-19 virus — known as B.1.1.529, and now nicknamed the Nu variant 1 — should have been first identified in South Africa. So far, SARS-CoV-2’s most devastating impacts have been in developed countries. The U.S., U.K. and European Union have accounted for about a third of deaths, compared to their roughly 10% share of the world’s population. However, it’s been in the BRICS grouping of fast-growing middle- income nations where an outsized share of new variants of concern have been isolated and analyzed for the first time. From the original strain in China, to the Delta lineage picked up in India, the Gamma variety isolated in Brazil and the Beta and latest Nu strains from South Africa, only the U.K.-related Alpha variant has emerged outside these countries.
/bloom.bg/3cRIzxw

Countries ban travellers from southern Africa over Covid variant; UK warns B.1.1.529 strain ‘may be more transmissible’ than Delta and vaccines ‘may be less effective’
Donato Paolo Mancini, Oliver Barnes and Sarah Neville in London, and Andy Bounds – FT
The EU and UK were among those who moved to impose travel restrictions on a group of southern African nations as a surge in cases of a heavily mutated coronavirus variant caused alarm among global health officials.
/on.ft.com/3oXbDcy

Poor regulation, not price cap, to blame for energy market mayhem; Mistake was to let companies take big commodity price risks backed in effect by the state
Helen Thomas – FT
Keeping Bulb’s customers supplied with gas and electricity this winter will require a £1.7bn loan from the government to cover the defunct company’s working capital until April. That’s more than £1,000 for each of its 1.7m households, or about £60 per UK home.
/on.ft.com/3rebS5M

WHO calls urgent meeting over worrisome new coronavirus variant
Yaron Steinbuch – NY Post
The World Health Organization has scheduled a special meeting Friday to discuss a worrying new coronavirus variant detected in South Africa that appears to be rapidly mutating. The so-called B.1.1.529 variant appears to have a high number of mutations — about 30 — in its spike protein, which could affect how easily it spreads to people, scientists have warned.
/bit.ly/3lds2bU

China Looks to Set Up Digital Asset Bourse in Virtual Yuan Push
Bloomberg News
China is considering setting up a digital asset exchange in Beijing as officials push to promote usage of the digital yuan and crack down on cryptocurrencies. Beijing will explore the possibility of establishing a bourse for digital assets trading, as part of broader efforts to boost financial services in the capital, according to guidelines issued by the State Council.
/bloom.bg/3cVEdFq

The Chinese Metaverse Stock Frenzy Gets Unreal; Chinese stocks related to the metaverse—even very tangentially—have risen sharply. But jumping in now could result in real losses
Jacky Wong – WSJ
The metaverse will blend the virtual and physical worlds. Investors should be careful that the meta market frenzy doesn’t warp their sense of reality. It’s difficult to find people who can clearly explain what exactly the metaverse will be—roughly, a shared immersive digital realm where people can shop, interact and play—but the concept has quickly become the hottest buzzword in the stock market. In China, the speculative craze has already caught the attention of the government. Chinese state-owned media has published a number of articles in recent weeks warning about the risks of jumping on the trend. On Thursday, the People’s Daily said investors should be careful about potential scams related to the metaverse or nonfungible tokens, a type of digital asset on the blockchain.
/on.wsj.com/2ZofmXM

The metaverse is a $1 trillion opportunity, crypto giant Grayscale says as virtual land sales boom
Harry Robertson – Business Insider
The metaverse has the potential to become a $1 trillion annual revenue opportunity across the worlds of advertising, digital events, e-commerce and hardware, according to a new report from crypto giant Grayscale.
/yhoo.it/3lbaFsh

Establishment of New Subsidiary
JPX
Japan Exchange Group, Inc. (JPX) resolved, at the meeting of the Board of Directors held today, to restructure the organization of the group and establish a new subsidiary, as PDF file attached below. Under its 3rd Medium-Term Management Plan, JPX aims to evolve into a total smart exchange where anyone can trade any product in a secure and easy way, and as core strategies within that aim, has worked on diversifying and updating data and index services by utilizing IT innovations and new partnerships, and on bolstering IT system
foundations and developing human resources to support the future of our business and society
/bit.ly/3xrBQDZ

IncubEx Acquires Insurwave
IncubEx, Inc. (“IncubEx”), a Chicago-based privately held company that designs and develops new financial products in global environmental, climate risk and related commodity markets, announces the acquisition of Insurwave Limited (“Insurwave”). Insurwave is an insurtech platform that connects insurance buyers, brokers and insurers supporting the placement and servicing of specialty insurance. It was founded by Shackleton Holdings Limited (“Shackleton”), a wholly owned EY entity. This acquisition enables IncubEx to deliver innovative environmental and sustainability products and technology solutions to the corporate risk and insurance markets. As a result of this transaction, Shackleton has become a minority shareholder in IncubEx, which is ideally placed to take Insurwave to its next stage of development.
/bit.ly/3COEqVE

China Asks Didi to Delist From U.S. On Security Fears
Bloomberg News
Regulators asked Didi brass to devise a plan to go private; Forced delisting will be severest action against China Tech
Chinese regulators have asked Didi Global Inc.’s top executives to devise a plan to delist from U.S. bourses, people familiar with the matter said, an unprecedented request that’s likely to revive fears about Beijing’s intentions for its giant tech industry.
/bloom.bg/3D1R4AU

US commission calls for tighter controls on flows to Chinese markets; Annual report to Congress highlights surge of US positions in Chinese equity and debt securities
Sandra Heistruvers – FT
A US government commission has called for tighter controls on flows to China’s capital markets in a move that, if approved, would have profound implications for asset managers and index providers.
/on.ft.com/32AY5fn

The (FX) World According to Cats and Dogs
Colin Lambert – The FullFX
The second cartoon in our occasional (and light-hearted) series, drawn by Madeleine Allcock, seeking to explain some of the controversial, strange and confusing aspects of the FX industry, looks at the eternally tricky world of stop losses and how, frankly, sometimes you just can’t win!
/bit.ly/3rra61t

Global Firms Are Paying Up to Deal With Hong Kong’s Quarantine
Olivia Tam – Bloomberg
Companies including JPMorgan Chase & Co. are stepping up to compensate employees ensnared by Hong Kong’s strict quarantine regime as businesses in the city struggle to retain and recruit staff almost two years into the pandemic.
/bloom.bg/310piYa

Eurex enhances FX offering to now include Scandinavian currencies; As part of the expansion, seven new FX futures on Scandinavian currencies will be available to trade on the exchange.
Wesley Bray – The Trade
Eurex has expanded its FX futures coverage to now include Scandinavian currencies, the most heavily traded European after GBP, CHF and EUR. Seven new FX futures on Scandinavian currencies have started trading on the exchange, including EUR/NOK, EUR/SEK, EUR/DKK, USD/NOK, USD/SEK, USD/DKK, NOK/SEK.
/bit.ly/3p5UDkk

Aquis Exchange appoints new chair of its board as Niki Beattie steps down; Incoming chair replaces Niki Beattie, recipient of The TRADE’s Lifetime Achievement award, who steps away after serving in the position for nine years.
Wesley Bray – The Trade
Aquis Exchange has appointed a new chair to succeed Niki Beattie, who completes her tenure on the board after serving in the position for nine years. Beattie, founder and managing director of Market Structure Partners and prominent industry figure, was honoured with The TRADE’s Editor’s Choice Lifetime Achievement award for the sell-side earlier this month, recognising her 25 years of experience and illustrious career in financial markets.
/bit.ly/3rdxMpW

Institutional investors caught on the back foot by the rise of the retail investor and crypto; Co-founder and CEO of AI data analytics start-up, Qi, says retail investors now dominate equity flows, which will force institutional investors to assess their cost structures, performance and how they use data.
Anita Hawser – The Trade
“The rise of the retail investor will make life harder for institutional investors. They’re changing the rules and are now such a big part of trade flows, that institutional investors can no longer afford to ignore them,” Mahmood Noorani, CEO and co-founder of Quant Insight (Qi) told The TRADE.
/bit.ly/3p4Ri4Z

Coronavirus

As cases climb in Americas, health agency warns Europe’s covid surge could be ‘window into the future’
Paulina Villegas and Paulina Firozi – The Washington Post
Global health leaders are urging caution as the holiday season gets underway, pointing to a 23% spike in coronavirus cases across the Americas in the past week, a surge that follows spikes in Europe – which officials warn could be a “window into the future for the Americas.”
/yhoo.it/3l9If1A

Southern Africa’s New Covid-19 Variant Prompts Wave of Travel Restrictions; EU, others ban arrivals from southern Africa region, while WHO prepares to discuss new risks
Gabriele Steinhauser – WSJ
Dozens of countries restricted travel to and from South Africa and neighboring nations Friday, hoping to contain a fast-spreading new variant of the coronavirus that scientists say may be more contagious and could render the current crop of Covid-19 vaccines less effective.
/on.wsj.com/3cOrpAO

A different type of COVID-19 vaccine is about to roll out around the world
Joe Palca – NPR
Whatever happened to Novavax and Sanofi’s COVID-19 vaccines? Many people thought at the beginning of the pandemic that these were the two most likely vaccines to succeed.
/n.pr/3FMpIAo

A flood of covid patients causes ‘almost unmanageable’ strain in Michigan as cases rise nationwide
Brittany Shammas and Paulina Firozi – Washington Post
At Spectrum Health, a major health-care system here, officials spent part of last week debating whether to move to “red status” in a show of how strained hospitals had become.
/wapo.st/3HY26dM

Scientists sound alarm over new ‘worst-ever’ super-mutant COVID variant that could make vaccines 40% less effective as the UK and Israel ban travel from South Africa and five other countries but passengers will continue to stream into US
Harriet Alexander, Chris Jewers, Luke Andrews – Daily Mail
Scientists are growing increasingly alarmed at a new COVID-19 variant originating in Southern Africa, which on Thursday and Friday forced countries including the U.K., Israel, Italy and Germany to effectively stop travel from the region, but passengers are continuing to arrive in the U.S.
/bit.ly/3p5w4nx

Europe Battles to Stem Covid Wave: The Political Week in Photos
Karl Maier – Bloomberg
As the number of Covid-19 deaths passed 100,000 in Germany and infections rose across Europe, governments tightened restrictions to slow the worsening pandemic. President Joe Biden’s administration announced a release from the U.S.’s emergency oil reserves, in tandem with several of the world’s biggest consumers, in a bid to bring down fuel prices and tame surging inflation in the run-up to the holiday shopping season.
/bloom.bg/3xrPsPB

Hong Kong Finds 2 Cases of New Covid Variant Identified in Africa
Emma O’Brien and Jinshan Hong – Bloomberg
Traveler from South Africa infected neighbor across the hall; Valved mask, open hotel room door may have played a role
Two cases of the new Covid-19 strain raising alarm in parts of southern Africa and unnerving financial markets worldwide have been found in travelers in compulsory quarantine in Hong Kong.
/bloom.bg/3E2PWyg

Travel Curbs Imposed as New Variant Roils Markets: Virus Update
Bloomberg News
Several governments around the world tightened restrictions on travel from countries in southern Africa after the discovery of a new coronavirus variant, described by scientists as very different to previous incarnations and of serious concern.
/bloom.bg/3nRAsr6

U.K. Stops Some Flights From Africa Over Covid Variant Worries
Naomi Kresge – Bloomberg
Five other neighboring African countries also covered by rules; Travelers from red-list countries face hotel quarantine
The U.K. will temporarily ban flights from South Africa and five neighboring countries over worries about a new, dramatically different Covid-19 variant recently identified in the region.
/bloom.bg/3DVjsFL

What We Know About the New Coronavirus Variant Now Spreading
Lisa Du and Prinesha Naidoo – Bloomberg
A new variant of the coronavirus that causes Covid-19 — called B.1.1.529 — has been identified in South Africa, with officials there saying it’s highly concerning. Fears that a new strain could fuel outbreaks in many countries and pressure health systems, potentially evading vaccines and complicating efforts to reopen economies and borders sent a wave of risk aversion across global markets Friday. European stock indexes and crude oil futures plunged while Treasuries rallied. Governments around the world have started issuing bans on travelers from South Africa and nearby countries.
/bloom.bg/2ZvV2UE

Covid Vaccines in Pregnancy Had No Impact on Babies in U.K. Data
Suzi Ring – Bloomberg
Stillbirth rates in vaccinated women the same as unvaccinated; 98% of pregnant women hospitalized with Covid are unvaccinated
Babies born to women vaccinated against Covid-19 in England showed no difference in birth outcomes, bolstering the safety profile of the shots during pregnancy.
/bloom.bg/3CUAaDW

Moderna Edges Pfizer in Study of Five Covid Vaccines
Zoltan Simon – Bloomberg
The Moderna Inc. and Russian Sputnik V Covid-19 vaccines both edged the version from Pfizer Inc. and BioNTech SE in effectiveness in a large-scale study of five different immunization shots conducted by Hungarian researchers.
/bloom.bg/3nWdkrC

Can Vaccines Get Rid of Long Covid? There’s much we don’t know about the condition that afflicts up to 30% of those infected with the virus. But we’re getting closer to answers.
Therese Raphael and Sam Fazeli – Bloomberg
One of the lingering mysteries of the pandemic is Long Covid, the term used for a range of symptoms, from shortness of breath and fatigue to cognitive deficits, that persists many weeks or months after someone has been infected with SARS-CoV-2. With research suggesting that up to 30% of people who have had Covid-19 are impacted by Long Covid, governments have dedicated special clinics and major research funding for the condition.
/bloom.bg/3CYI27s

Hong Kong to Roll Out China-Style Health Code to Open Border
Jenni Marsh and Felix Tam – Bloomberg
Tracking app to record name and places visited, official says; City clears a final hurdle to restarting cross-border travel
Hong Kong will roll out a China-style tracking app to reopen its mainland border, officials announced, closing a gap in surveillance that had been a sticking point in protracted travel talks. “Our current idea is that the Hong Kong Health Code will be used with LeaveHomeSafe,” Chief Secretary John Lee said at a briefing on Thursday evening, explaining that the city’s current contact tracing app wouldn’t be retired.
/bloom.bg/3CUB6Z2

Exchanges, OTC and Clearing

SGX and CAI launch index to capture long term aviation and travel-related growth as borders reopen
Changi Airports International
Singapore Exchange (SGX) and Changi Airports International (CAI) today jointly launched the iEdge-GateEq Aviation and Travel Index which aims to capture global aviation and travel-related long term growth, as borders reopen and travel restrictions ease.
/bit.ly/3CUfbBe

Compression Trades for Nikkei 225 Options was executed
JPX
Osaka Exchange (OSE) announced that the first compression trades for Nikkei 225 Options (powered by TriOptima AB) (*)was executed during the Night Session (Trade date November 26th). In this cycle, total of 234 contracts with 21 issues (JPY 7 billion in notional amount) were traded.
/bit.ly/2ZoLfzt

Handling of Tick Sizes for ETFs, ETNs, and leveraged products from November 29 onward
JPX
Tokyo Stock Exchange, Inc. (TSE) has previously announced that tick sizes applied to TOPIX 100 constituents (hereinafter, the “TOPIX 100 tick size table”) will be applied, in principle, to all ETFs, ETNs, and leveraged products after November 29, 2021. Additionally, for ETFs, ETNs and leveraged products with a trading unit of 1 unit, TSE has announced that we will apply the TOPIX 100 tick size table or tick sizes other than those applied to TOPIX 100 constituents (hereinafter, the “non-TOPIX 100 tick size table”), depending on the price. Today we announce tick sizes to be applied on November 29 that will be implemented in accordance with these revisions.
/bit.ly/3cS73qw

Take Off S.p.A. lists on Euronext Growth Milan
Euronext
32nd listing of 2021 on Euronext Growth Milan; Take Off S.p.A. brings the total number of companies listed on Euronext Growth Milan to 163; Total placement volume of the offering equal to EUR12.5 million
Borsa Italiana, part of the Euronext Group, today congratulates Take Off S.p.A. on its listing on Euronext Growth Milan. Take Off S.p.A. is a retailer of fashion clothing and accessories for adults and children throughout Italy with 143 stores, of which 26 are managed directly, and 117 are managed through affiliation agreements. Take Off S.p.A. represents the 32nd listing since the beginning of the year on Borsa Italiana’s market dedicated to small and medium sized companies and it brings the total number of firms currently listed on Euronext Growth Milan to 163. In the placement phase, Take Off S.p.A. raised EUR12.5 million.
/bit.ly/2ZtKVQa

BME brings together Spanish companies with European investors at the Geneva European Midcap Event
EPM
On December 1st and 2nd BME will bring together several Spanish companies with European investors in Geneva for the twelfth edition of the Geneva European Midcap Event, which this year will be held remotely due to the health situation.
/bit.ly/3nTavY8

Eurex expands FX offering to major European currencies; Seven new FX Futures on Scandinavian currencies
Eurex
Eurex has expanded its FX Futures coverage to the most heavily traded European currencies after GBP, CHF, and EUR. The derivatives trading arm of Eurex continues to develop into a liquidity hub covering major European currencies. The exchange has started trading seven new FX Futures on Scandinavian currencies, including EUR/NOK, EUR/SEK, EUR/DKK, USD/NOK, USD/SEK, USD/DKK, NOK/SEK. A liquidity scheme caters for tight pricing and competitive liquidity.
/bit.ly/3cSJxte

Aquis Exchange appoints New Chair
Aquis
Aquis Exchange PLC (AQX.L), the exchange services group, is pleased to announce that Glenn Collinson has been appointed to succeed Niki Beattie as Chair of Aquis Exchange. The appointment is effective 1 January 2022. Niki steps down from the Board after nine years, having joined Aquis Exchange as its first Chair in January 2013. Glenn’s appointment follows a search for a suitable successor to the position of Chair of Aquis Exchange, co-ordinated by Senior Independent Director Richard Bennett, which considered both external and internal candidates for the role.
/bit.ly/3nUTKfb

Stock Exchange Participants’ Market Share Report
HKEX
/bit.ly/3cRXM1C

Interview with Oleksii Yudin – Capital Market Talks 2021
FEAS Federation of Euro-Asian Stock Exchanges
/bit.ly/3CUnIEg

Athens Stock Exchange and Belgrade Stock Exchange sign Agreement on Migration of the Belgrade Stock Exchange’s trading activities to the Trading Platform of the Athens Stock Exchange
Belgrade Stock Exchange
The Agreement for the provision of trading facilities by migrating Belgrade Stock Exchange’s (BELEX) trading activities as Market Operator to the Trading platform of Athens Stock Exchange’s (ATHEX) was signed today, November 25, 2021.
/bit.ly/3nSDTO1

Edda Wind lists on Oslo Børs
Euronext
NOK 875 million raised successfully; Market capitalisation of NOK 1.89 billion; 183rd listing on Euronext and 63rd on Oslo Børs markets in 2021
Oslo Børs, part of the Euronext group, today congratulates Edda Wind on its listing on Oslo Børs Main Market (ticker: EWIND).
/bit.ly/3lc6AnA

Ariston Group lists on Euronext Milan
Euronext
Fifth IPO of 2021 on Euronext Milan;Ariston Group brings the total number of companies listed on Euronext Milan to 234; The company raised EUR915 million
Borsa Italiana, part of the Euronext Group, today congratulates Ariston Group on its listing on Euronext Milan.
/bit.ly/3l7QgE7

The role of total return futures (TRFs); Director of product research and development for equity and index at Eurex, Stuart Heath, explains the benefits of TRFs and their future role in the market.
Eurex
What are total return futures (TRFs)?
Total return futures (TRFs) are centrally cleared and exchange-listed alternatives to total return swaps (TRSs). They’re a synthetic cash instrument whereby one party receives the total returns on an underlying index, or security, until expiry, while at the same time paying the financing costs to the counterparty for providing those returns.
/bit.ly/3rd8tnY

Money Market Futures: Delisting of EONIA-Futures (FEO1) and Three-Month SARON® Futures (FSO3)
Eurex
The Management Board of Eurex Deutschland took the following decisions with effect from 20 December 2021: Delisting of EONIA Futures (FEO1)
/bit.ly/3laU1sL

T7 Simulation environment: Increase in the number of partitions and change of the Partition ID for some futures and options
Eurex
Eurex Exchange is planning to increase the number of partitions available in the T7 simulation environment (MIC: XEUR) from three to five. Following the addition of the two new partitions (Partitions 4 and 5), some of the existing futures and options products will be redistributed to the new partitions from the business day 29 November 2021 onwards. For the affected products, the existing multicast addresses and ports for the dissemination of the market data via the EMDI, EOBI and MDI interfaces will remain unchanged. Only participants with high-frequency sessions in conjunction with the partition-specific gateways will be directly affected by these changes. The product reference data will be modified accordingly to reflect the new partition IDs.
/bit.ly/32B2Bul

Eurex Exchange Readiness Newsflash | MiFID II/MiFIR: New Short Code regime starting 3 January 2022
Eurex
As published and reminded most recently with Eurex circular 095/21 in October 2021, the Short Code regime starting 3 January 2022 is to be adapted. Following the jointly published guide of Eurex Deutschland and the Frankfurt Stock Exchange, namely the “FWB Eurex Member Guide Short Code Regime 2022”, shall serve as a basis for the preparations of Eurex Trading Participants. We therefore like to draw your attention again to the upcoming changes and required actions.
/bit.ly/3HWdarT

SGX welcomes Daiwa House Logistics Trust to Mainboard
SGX
Singapore Exchange (SGX) is pleased to welcome Daiwa House Logistics Trust (DHLT) to its Mainboard under the stock code “DHLU”.
/bit.ly/3rkhU4G

New document from Solarprofit about its listing on BME Growth
BME-X
It will be the 15th company to list on BME Growth this year
SOLARPROFIT will carry out a capital increase and, additionally and simultaneously, a public share offering in the next few days. Once both are completed, it will publish an appendix to the Information Document with the results of both. The company’s Board of Directors will take the subscription price in the capital increase as the reference price for the start trading.
/bit.ly/3FMyC0P

BME admits ICO’s 500 million euro eighth social bond
BME-X
The issue matures in April 2025 and will be used to finance positive impact projects of self-employed workers, SMEs and Spanish companies; The volume issued was 2.5 oversubscribed, bringing the bond’s yield down to -0.322%; With this placement, the volume of ESG bond issues in BME’s fixed-income markets reached 93 billion euros.
Today, the eighth issue of social bonds by Spain’s state-owned bank Instituto Oficial de Crédito (ICO), for an amount of 500 million euros and maturing on April 30, 2025, was admitted to trading on BME’s AIAF Fixed Income Market. The funds raised with this transaction will be used to finance projects of self-employed workers, SMEs and Spanish companies that have a positive social impact and contribute to boosting recovery and sustainable economic growth. These projects will be implemented with the support of the ICO Guarantee Lines, direct financing programmes and the funds managed by AXIS, its venture capital subsidiary.
/bit.ly/3lbywYu

Fintech

What does machine learning say about the drivers of inflation?
Emanuel Kohlscheen – BIS
Which are the key drivers of inflation, and what role do expectations play in the inflation process have been long-standing questions in macroeconomics, particularly given their relevance to economic policymaking. This paper sheds some fresh light on these central questions using machine learning.
/bit.ly/311XMcu

Bitfinex launches FIX Gateway for high-speed trading
Bitfinex via Finextra
Bitfinex, a state-of-the-art digital token trading platform, has launched a Financial Information eXchange (FIX) gateway, the message routing service using the FIX protocol that enables high-speed connectivity to the exchange, amid a surge in demand for high-speed connectivity among the exchange’s growing user base.
/bit.ly/3CUjk8c

Paytm Flop Will Skim Froth Off India’s IPO Market; The disappointing performance of India’s largest IPO will cool sentiment a bit, but a dose of reality could make for a healthier market
Jacky Wong – WSJ
India’s biggest ever initial public offering was a flop. That may give sentiment in the red-hot market a needed reality check—but it is unlikely to derail the IPOs of the many other Indian unicorns champing at the bit.
/on.wsj.com/3xo5VnQ

Archax Selects Scila Surveillance and Scila Anti-Money Laundering (AML) for Monitoring of Securities and Cryptocurrencies
Scila
Archax, the first and only UK Financial Conduct Authority (FCA) regulated digital securities exchange, broker and custodian, has selected Scila Surveillance and Scila AML for monitoring of its markets, provided by the Stockholm-based leading independent surveillance, risk & anti-money laundering technology provider Scila AB. Archax was also the first firm to be listed on the FCA’s Cryptoasset Register and will use Scila for its cryptocurrency market.
/cisn.co/3DV500t

Alibaba Empowers Business Units to Be More Agile as Challenges Mount; CEO Daniel Zhang is devolving power to unit presidents as competition grows and big platforms come under pressure in China
Alibaba Chief Executive Daniel Zhang – WSJ
Alibaba Group Holding Ltd.’s chief executive, Daniel Zhang, is devolving power to the heads of the company’s business units to become more agile in tackling rising challenges and potentially open the way for spinoffs, people familiar with the matter said.
/on.wsj.com/3DWU170

CloudQuant Integrates ICE DataVault Into Its Liberator™ Platform
CloudQuant
CloudQuant, a leading data, research, and technology firm, today announced that ICE DataVault is now available through the CloudQuant Liberator™ platform. This integration can allow ICE and CloudQuant customers to easily access ICE DataVault’s comprehensive archive of historical tick data captured from the ICE Consolidated Feed.
/bwnews.pr/3xnJZt7

First Submarine Cable Between Europe and South America Goes Live; EllaLink connects Fortaleza in Brazil to Sines in Portugal – and features Equinix data centers on both sides
Max Smolaks – DatacenterKnowledge
EllaLink, the first high-capacity submarine cable to provide direct connections between South America and Europe, is now fully operational. The project, part-funded by the European Commission, connects Brazil and Portugal – where it continues as a direct terrestrial link to Madrid, Spain.
/bit.ly/3CW5bYm

Did That Chatbot Just Make A Rude Joke? Money is pouring into artificial intelligence. Not so much into ethics. That’ll be a problem down the line.
Parmy Olson – Bloomberg
PolyAI Ltd. is an ambitious startup that creates artificial voices to replace call center operators. Based in London, it has raised $28 million to bring AI-powered customer service to Metro Bank Plc, BP Plc and more. The idea is that instead of the nightmare of dialing random digits in a decision tree, you can instead ask to, say, book a table and a voice — with just the slightest inflection of its machine-learning origins — responds with great civility. That’s nice. But there was a brief moment two years ago when it wasn’t polite at all.
/bloom.bg/3nSGoju

Quantile appoints former ING head of financial markets to lead Europe growth strategy; New appointment brings more than 20 years’ experience in financial markets to Quantile, having previously served at ABN Amro Bank, Merrill Lynch and ING.
Wesley Bray – The Trade
Multilateral optimisation services provider Quantile Technologies has appointed Guido Van Ingen as its new head of the Netherlands and relationship management. Van Ingen started his new role this month and reports directly to Andrew Williams, Quantile Technologies’ CEO.
/bit.ly/3p6Z1jj

European powers move to allow for postponement of buy-in regime; The implementation date of the controversial aspect of the settlement discipline will no longer be 1 February 2022 with experts suggesting the delay could be two-to-three years.
Jonathan Watkins – The Trade
The European Parliament and EU Council have agreed to make changes to the Central Securities Depositories Regulation (CSDR) in order to allow for the postponement of mandatory buy-ins included within the rules. The buck now passes back to the European Securities and Markets Authority (ESMA) with experts predicting the delay could be between two and three years.
/bit.ly/3HYhiYm

Cybersecurity

NGX Hosts 9th Nigerian Capital Market Information Security Forum
Proshare
Nigerian Exchange Limited (NGX) organised the 9th edition of the Nigerian Capital Market Information Security Forum (NCMISF), themed, “Navigating the Post-Pandemic Cyber Security Imperatives”, on Tuesday, 23 November 2021.
/bit.ly/314lhSf

Report: Cybersecurity recruitment, training misses the mark
VentureBeat
As the massive shortage of security talent and skills continues, sub-par recruitment processes and outdated training for cybersecurity professionals are exacerbating the problem, according to a new survey. If hiring and training processes are adjusted, however, retention of workers and the availability of crucial cyber skills can both be improved, said Adi Dar, founder and CEO of security skills development platform provider Cyberbit, which conducted the survey.
In the U.S. alone, job tracker Cyber Seek estimates that there are currently about 460,000 openings in cybersecurity — and these positions take an average of 21% longer to fill than other IT roles.
/bit.ly/3DVYmY5

Cryptocurrencies

DIA Launches Digital Asset Index Series ‘DIAx’
New DIAx Reference Prices and Indices provide transparent and regulatory compliant performance measures for individual digital assets and baskets of digital assets, calculated by Morningstar Indexes, part of Morningstar, Inc.
DIA Data – GlobeNewswire
DIA, the open-source data platform for decentralised finance, together with global benchmark provider Morningstar Indexes, part of Morningstar, Inc., today announced the release of ‘DIAx’ – regulatory compliant reference prices and indices that will enable investors to benchmark and access digital assets via traditional markets.
The DIAx family initially comprises benchmark reference prices and indices measuring the price of individual digital assets, including Bitcoin (DIAxBTC), DIA (DIAxDIA) and the DIA Metaverse Index (DIAxMVI) measuring the performance of a basket of tokens representing companies building Metaverse technology.
/bit.ly/32oZipR

Binance CEO embraces crypto oversight as agencies unveil regulatory ‘sprint’
David Hollerith – Yahoo Finance
Binance Founder and CEO Changpeng Zhao embraced government efforts to oversee the cryptocurrency market, where growth and investor interest have exploded recently. Zhao’s remarks came just as U.S. financial regulators unveiled an inter-agency roadmap for how to craft stricter crypto regulation. Dubbed the “crypto sprint,” the agenda sketches out a to-do list for 2022 that will offer crypto players more clarity on the rules of the road, and comes as the industry is moving to shape the debate.
/yhoo.it/3xrVKig

European Council approves two frameworks for regulating cryptocurrencies
Ali Raza – Insidebitcoins.com
The European Union has been planning for the longest time to regulate cryptocurrencies. The union has announced that it is one step closer to implementing an entire framework for regulating cryptocurrencies. The council has now announced its thoughts on the Markets in Crypto Assets (MiCA) and the Digital Operational Resilience Act (DORA).
/bit.ly/3rbGiWd

Coinbase buys BREAD as diversification push continues; The exchange platform hopes the purchase will assist in achieving its goals
Jai Singh – Proactiveinvestors.com
Coinbase, the crypto currency exchange platform, has purchased BREAD, the crypto wallet firm for an undisclosed amount. It comes as Nasdaq-listed Coinbase is pushing to add diversification to a business that has been tightly tied to the ebb and flow of cryptocurrency volatility.
/bit.ly/3HYLvXi

Why are some nonfungible tokens so expensive? Most are worthless, but some sell for millions: Experts explain to DW what they know about the mysterious price of nonfungible tokens, and why this crypto-asset may have rough days ahead.
Dw.com
Nonfungible tokens (NFTs) burst onto the scene earlier this year when some of them started pulling in millions of dollars at auctions. A confusing and controversial new digital asset is on the rise. DW’s own experiment selling an NFT made a smaller splash. Which made us all the more curious: Why are some so expensive?
/bit.ly/3HRmbTn

Crypto Exchange Body Says Blanket Ban On Cryptos To Boost Non-State Players, Unlawful Activities
Rituraj Barua – Inc42.com
The Crypto Bill listed for the winter session seeks to ban all private cryptocurrencies while allowing a few exceptions; The Bill will also pave the way for the central bank digital currency (CBDC); On November 16, RBI Governor Shaktikanta Das had said that these cryptos pose serious threats to the financial stability of the country
Amid the government’s likely proposal to ban private cryptocurrencies, the Blockchain and Crypto Assets Council (BACC) today has said that a blanket ban on cryptocurrencies will encourage non-state players and lead to higher unlawful usage of such currencies.
/bit.ly/3xqoZBY

Teen in Hamilton crypto case was detained following GTA raid last year: source; The international case spans multiple agencies and is the biggest theft in cryptocurrency from a single person
Ethan Lou – Financial Post
The Hamilton teen accused of an alleged $46-million cryptocurrency theft, whose arrest was announced last week, was first detained in 2020 following a dawn raid that damaged a Toronto-area home, the Financial Post has learned.
/bit.ly/3DWuyKU

Chinese Crypto News Site ChainNews Shuts Down; The space for crypto media in China is shrinking.
Eliza Gkritsi – Coindesk
ChainNews, one of China’s top crypto news sites, shuttered its operations today, co-founder Feng Liu told CoinDesk in a Twitter message. Earlier Friday the co-founder announced the closure in his personal WeChat moments, according to a screenshot obtained by CoinDesk.
On Nov. 15, ChainNews said its website would be down for maintenance for a few hours, but that the team would continue posting news on its Telegram channel and Twitter account. The news site has gone silent in both platforms since Nov. 25.
/bit.ly/316Y0iZ

Want Bitcoin Miners to Run Faster? Try Dunking Them In Coolant; Immersion-cooled miners can run faster without overheating
Josh Saul – Bloomberg
The endless competition among Bitcoin miners to assemble the fastest computers has led to a surprising new tactic: installing computers inside tanks of liquid coolant.
/bloom.bg/3cQTIi1

Crypto’s hottest game is facing an economic maelstrom; Video game analysts are questioning the economic sustainability of pay-to-play ‘Axie’
Miles Kruppa and Tim Bradshaw – FT
Eight months ago, Toronto-based management consultant Ansel Gravelle stumbled across a video game called Axie Infinity, which promised to pay players cryptocurrency for fighting digital monsters. After paying the $1,000 entry fee and playing for over a month, Gravelle realised he could make more money another way.
/on.ft.com/3laPV3R

Politics

How Dangerous Is Peter Thiel? In a recent speech, the tech billionaire gave us a frightening look at his worldview.
David Corn – Mother Jones
New York Times columnist David Brooks recently got scared. Last month, he attended the National Conservatism Conference, held in an Orlando hotel, and reported in the Atlantic that this confab demonstrated that the right—of which he used to be a high official in good standing—has become a cauldron of End-Times paranoia posing as populism. The animating theme of this shindig did not arise from policy prescriptions or principles for contending with the nation’s economic or social welfare challenges or for pursuing a foreign policy in this confusing century. It was the notion that conservatives face eradication at the hands of diabolical leftists. As Brooks writes, “The idea that the left controls absolutely everything—from your smartphone to the money supply to your third grader’s curriculum—explains the apocalyptic tone that was the dominating emotional register of this conference.”
/bit.ly/3HVIHdv

Biden’s Covid Death Milestone; More Americans have died of the virus in 2021 than in all of 2020.
The Editorial Board – WSJ
President Biden may not recall what he said during a 2020 campaign debate last fall, but Americans should: “Anyone who is responsible for that many deaths should not remain as President of the United States of America.” At the time the U.S. had recorded 220,000 Covid deaths.
/on.wsj.com/3FODMt3

Mexico’s Central Bank Nominee Fuels Concerns About Independence; Nomination of Victoria Rodríguez sends peso falling; President López Obrador dismissed concerns
Anthony Harrup and Santiago Pérez – WSJ
The surprise nomination Wednesday of a little-known economist as the next head of Mexico’s central bank raised concerns about whether the bank would be able to retain its independence under President Andrés Manuel López Obrador as the country struggles with rising inflation.
/on.wsj.com/3xtNTki

The US and China are already at war. But which kind? The fact that war can be fought in so many ways in the 21st century might reduce the need for actual military conflict
Gillian Tett – FT
Early in November, the esteemed Harvard professor Graham Allison went down to Washington’s Senate to deliver a Greek history lesson. The topic was the Athenian historian Thucydides who, of course, penned the account of war between Sparta and Athens in the fifth century BC. This kind of conflict used to only excite students of the classics. But in 2017 Allison wrote a tome called Destined for War: Can America and China escape Thucydides’s Trap?, and it became a surprise bestseller.
/on.ft.com/3nVRxAk

Putin Pushes Confrontation With NATO as Hardliners Prevail; Hemmed in and fuming, the Kremlin leader is using a troop buildup near Ukraine to get the U.S. to pay attention.
Ilya Arkhipov, Henry Meyer, and Irina Reznik – Bloomberg
Vladimir Putin is an expert at bluffing and keeping the West on its toes, pushing relations to the edge before pivoting without warning. But, hemmed in and fuming, he is deadly serious about being heard on Ukraine. Those close to the Kremlin say the Russian president doesn’t want to start another war in Ukraine. Still, he must show he’s ready to fight if necessary in order to stop what he sees as an existential security threat: the creeping expansion of the North Atlantic Treaty Organization in a country that for centuries had been part of Russia.
/bloom.bg/3cTbYrg

China Is Closing Another Major Bridge to Taiwan; The last cohort of people who can span the divide between Beijing and Taipei are being scared away.
Tim Culpan – Bloomberg
For the past decade, political, economic and cultural ties between China and Taiwan have withered under the strain of an increasingly assertive Beijing and a Taipei that refuses to bend under its will.
/bloom.bg/3nW48DA

Flush With Cash, Saudi Prince Snubs Biden and Sends a Message; The kingdom, and its controversial leader, are emerging stronger from the Covid crisis as oil revenues boom.
Matthew Martin and Javier Blas – Bloomberg
President Joe Biden sounded deeply frustrated. Inflation was heading toward a 30-year high and Americans, rich and poor, could see the price of gasoline going up almost daily. Politically, oil was toxic for the White House.
/bloom.bg/3cO5JVu

Here’s how a ban on U.S. oil exports would backfire, according to Goldman Sachs
William Watts – MarketWatch
The Biden administration is under pressure to supplement a U.S.-led release of strategic oil reserves by reinstating a ban on crude exports. But that would likely backfire, warned analysts at Goldman Sachs.
/on.mktw.net/3cT2oo1

Brainard’s Nomination Promotes a Close Powell Ally on Recent Fed Innovations; Two veteran policy makers must navigate an unexpected jam of higher prices lasting longer
Nick Timiraos – WSJ
President Biden’s decision to nominate Lael Brainard to become Federal Reserve vice chairwoman elevates a veteran policy maker and economist who has been a strong ally of Chairman Jerome Powell on the central bank’s boldest policy decisions during the pandemic.
/on.wsj.com/3r8IlKM

Regulation

SEC Investor Advisory Committee to Meet Remotely on Dec. 2
SEC
The Securities and Exchange Commission’s Investor Advisory Committee will hold a public meeting on Dec. 2 by remote means. The meeting will begin at 10 a.m. ET, is open to the public via live webcast, and will be archived on the committee’s website for later viewing.
/bit.ly/30Z18Ny

OSC provides funding to Prosper Canada
Ontario Securities Commission
The Ontario Securities Commission (OSC) is providing approximately $2.7 million in funding for Prosper Canada, a national charity dedicated to expanding economic opportunity for Canadians living in poverty through program and policy innovation.
/bit.ly/3nUtyBf

Change to FMA Executive Committee
FMA
The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko – said today that its Director of Capital Markets, Sarah Vrede, had resigned. Ms Vrede has accepted the role of Chief Executive of the New Zealand Financial Markets Association, the professional body for the wholesale (institutional) banking industry. Ms Vrede will take up her new role early in 2022.
/bit.ly/3nTkBbt

FCA announces proposals to improve outcomes for non-workplace pension customers
UK FCA
The FCA is proposing that firms offer a new ‘default’ investment option to help non-workplace pension customers save for their retirement.
/bit.ly/313jYTz

Back to the future: intellectual challenges for monetary policy; Speech by Claudio Borio, Head of the BIS Monetary and Economic Department at the David Finch Lecture, University of Melbourne, 2 September 2021, virtual.
Claudio Borio – BIS
The central banking community is facing major challenges – economic, intellectual and institutional. A key economic challenge is the need to rebuild room for policy manoeuvre, which has fallen drastically over time. This lecture focuses on the intellectual challenge, ie facts on the ground are increasingly testing the long-standing analytical paradigms on which central banks can rely to inform their policies. It argues that certain deeply held beliefs underpinning those paradigms can complicate the task of regaining policy headroom.
/bit.ly/3DXL11d

The DFSA Publishes Markets Brief No. 25 on Special Purpose Acquisition Companies (SPACs)
DFSA
The Dubai Financial Services Authority (DFSA), has published Markets Brief No. 25 on Special Purpose Acquisition Companies (SPACs). The Markets Brief provides general information about the DFSA’s approach to listing SPACs in the DIFC.
/bit.ly/3nTCbw5

Cash in, fraud out: Criminals target bitcoin ATMs as crypto popularity surges
Scott Zamost, Eamon Javers, Jennifer Schlesinger – CNBC
Criminals are cashing in on bitcoin ATMs around the country, using the convenient, largely anonymous transactions for drug trafficking, money laundering and a variety of fraud, law enforcement officials say. The machines, mostly located in convenience stores and owned by private companies, allow customers to easily buy bitcoin and other cryptocurrencies using cash. The funds are then sent to that customer’s crypto wallet.
/cnb.cx/3FQydKQ

Japan’s Finance Ministry to Take Corrective Action Against Mizuho – Nikkei
Reuters
Japan’s finance ministry is set to take punitive action against the banking arm of Mizuho Financial Group over a lack of compliance with the country’s foreign exchange law, the Nikkei business daily reported late on Wednesday.
/bit.ly/3rcZKBR

Women Graduates to Outnumber Men For First Time at Japan’s FSA
Takashi Umekawa and Takashi Nakamichi – Bloomberg
Japan’s financial regulator is hiring more female college graduates next year as career bureaucrats than male ones, in a rare move highlighting the government’s efforts to improve gender parity in policy-making.
/bloom.bg/3DUYyH1

Spanish watchdog clashes with footballer Andrés Iniesta over Binance tweet; Regulator says athletes and influencers have ‘responsibility’ to remind followers of crypto risks
Daniel Dombey, Joshua Oliver and Samuel Agini – FT
Spain’s market regulator has chided one of the country’s football heroes for promoting digital asset platform Binance, in a social media exchange that comes at a time when crypto companies are vying to reach sports fans around the world.
/on.ft.com/3p1ozy4

Parliamentary Joint Committee on Corporations and Financial Services – Opening statement – 26 November 2021; Speech by ASIC Chair Joe Longo at the Parliamentary Joint Committee on Corporations and Financial Services, Thursday 26 November 2021.
ASIC
Good morning Chair and Committee members. Chair, congratulations on your new role, I’m not sure you would count it as a promotion, but we are very pleased to have you on this important committee once again.
/bit.ly/3r8n4kp

ESMA continues to see risk of market corrections amid elevated valuations
ESMA
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, today publishes the second Risk Dashboard for 2021, covering the third quarter of the year. ESMA maintains risk levels unchanged, at a high level, as the market environment remains defined by very high uncertainty, continued elevated asset valuations with risk of price corrections and abrupt shifts in risk premia.
/bit.ly/32CpGwI

Investing and Trading

What Inflation? Small Investors Keep Piling Into Flashy Growth Stocks; AMD, Nvidia and Apple still hold appeal for many, even as potentially higher interest rates prompt defensive moves by Wall Street pros
Caitlin McCabe – WSJ
Conventional Wall Street wisdom says inflation, which has been rising all year, is bad for growth and technology stocks. So far, many small investors don’t care. Individual investors continue to stampede into shares of growth companies, the types of buzzy stocks that have enjoyed explosive price gains this year. Advanced Micro Devices Inc., AMD 5.26% Nvidia Corp. NVDA 2.92% and Apple Inc. are the three stocks most purchased this month by individual investors, according to VandaTrack, a Vanda Research flow tracker that measures net purchases.
/on.wsj.com/3DXUiX4

The Message of VIX
William “Bill” Speth, Chief Research Officer – Options Solutions
The Cboe Volatility Index (VIX) is considered by many to be an indicator of broad market risk and investor sentiment. It has been dubbed the market’s “fear gauge” because of its tendency to rise when the market falls and vice-versa. Since 1993, the VIX Index has exhibited a strong negative correlation to stock market returns but over short periods VIX can act very differently – and that behavior can serve as a sign of a possible market turn.
/bit.ly/3DUABQ0

Cargill is No. 1 again on Forbes list of biggest private companies
Mark Reilly – St. Paul Business Journal
Cargill Inc. is once again the largest privately held company in the United States, returning to the top spot on Forbes magazine’s annual list after a one-year slip to No. 2. The Minnetonka-based agribusiness giant is a perennial list-leader on Forbes’ ranking. In the list’s 37-year history, Cargill has missed out on the No. 1 spot just three times. In 2020, it came in second to Wichita, Kan.-based Koch Industries Inc.
/bit.ly/3xp5fyB

Supply-Chain Crisis Only Getting Worse With China’s 7-Week Port Quarantine
K Oanh Ha and Jack Wittels – Bloomberg
Vessels barred for two weeks after bringing on any new crew; China’s restrictions ’cause knock-on effects,’ says the ICS
China’s increasingly extreme Covid Zero policies are standing in the way of a full recovery for the shipping industry and prolonging a crisis that’s snarled ports and emptied shelves worldwide.
/bloom.bg/3ld46Fn

Leverage on Leverage Is Big Danger for Investors and Their Lenders; The decision by Calpers to use borrowed cash to boost returns shows how everyone is taking more risk to make a buck.
Paul J. Davies – Bloomberg
There’s already too much money chasing too few assets and yet even the most sober investors seem ready to add to the problem. Calpers, the $495 billion California public-employee pension fund, is planning to put more money into chasing returns by taking on debt worth up to 5% of its fund value — or roughly $25 billion — to plow into financial assets. It is doing this because it can’t see another way of hitting its long-term return target of 6.8% to meet its promised payouts.
/bloom.bg/2ZoYIY4

A 10,000% Jump Makes Indonesian Data Firm World’s Top IPO
Fathiya Dahrul – Bloomberg
DCI is also Indonesian stock market’s best performer this year; Rally has prompted probe into possible trading manipulation
A cloud data service provider partly owned by an Indonesian tycoon has delivered the world’s best-performing initial public offering this year, jumping more than 100 fold since its share float in January.
/bloom.bg/3CUg7Wu

Environmental, Social and Corporate Governance

BNP Paribas Asset Management expands thematic fixed income range with launch of Social Bond fund
BNP Paribas
BNP Paribas Asset Management (‘BNPP AM’) announces the launch of BNP Paribas Social Bond fund, investing in bonds aimed at financing projects with positive social impacts. The fund is classified as Article 9 under SFDR[1] and launches during a period of record growth for the sustainable bond market, in particular social bonds. where “total smart exchange where anyone can trade any product in a secure and easy way, and as core strategies within that aim, has worked on diversifying and updating data and index services by utilizing IT innovations and new partnerships, and on bolstering IT system foundations and developing human resources to support the future of our business and society.”
/bit.ly/3CU4Mph

Australians Warned La Nina’s Rains May Create Severe Fire Season
Ainslie Chandler – Bloomberg
Heavy downpours boost fuel for bushfires, say CSIRO scientists; Climate change overwhelmingly seen as driving blaze increase
The wild storms and heavy rains now lashing Australia’s eastern seaboard are likely to be followed by another wave of severe wildfires late next year, according to researchers at the government’s peak science body.
/bloom.bg/3HZ7FZu

Institutions

JPMorgan CEO Joked About Outlasting China’s Communist Party. The Fun Didn’t Last Long; The executive issued not just one but two statements to apologize for his wisecrack.
Koh Ewe – Vice
America’s most powerful banker has had his fair share of controversial opinions, but rarely has he walked back something as quickly as he did after he joked about the world’s second-most powerful country.
/bit.ly/3FQf63C

Did Jamie Dimon Hit a Nerve? Jokes about Communist Party longevity are no laughing matter in China.
The Editorial Board – WSJ
Ronald Reagan liked to tell a joke, during the Cold War, about an American and Russian arguing about freedom in their countries. The American says he can go into the Oval Office, pound the desk, and say he doesn’t like the way the President is running the country. The Russian replies that he can do that too: Any time he wants he can go into the Kremlin, pound on the desk, and say he doesn’t like the way the American President is running his country.
/on.wsj.com/3rbopHh

Fiserv to Present at the Credit Suisse 25th Annual Technology Conference
Fiserv, Inc.
Fiserv, Inc. (NASDAQ: FISV), a leading global provider of payments and financial services technology solutions, announced today that Frank Bisignano, President and Chief Executive Officer, will present at the Credit Suisse 25th Annual Technology Conference on December 1, 2021 at 10:55 a.m. CT.
/fisv.co/3DYVzNU

Schwab launches its first sustainably focused, actively managed ETF. Here’s the breakdown
CNBC
David Botset, head of strategy and product at Charles Schwab, and Tom Lydon, CEO of ETF Trends, discuss the ESG explosion and how Schwab is getting a piece of the action. With CNBC’s Leslie Picker.
/cnb.cx/3DVsPWj

Regions

Beijing looks into setting up digital asset exchange to push the e-yuan; The proposal shows the country’s determination to promote its digital currency, says broker
The suggestion is among a wide range of developmental plans for the Beijing municipal administrative centre
Georgina Lee, Enoch Yiu – South China Morning Post
China’s sovereign digital currency project has expanded to a value of 62 billion yuan (US&9.7 billion) since the roll-out of a pilot programme in late 2019. Photo: Kyodo
China’s sovereign digital currency project has expanded to a value of 62 billion yuan (US&9.7 billion) since the roll-out of a pilot programme in late 2019. Photo: Kyodo
China is exploring setting up a virtual asset exchange as the government lays out the next step to complement its pilot of the digital yuan, according to a blue print published on the State Council website on Friday.
/bit.ly/3ldmsGe

Japanese Companies To Test Bank-Backed Cryptocurrency Next Year
Jet Encila – Btimesonline.com
Japan is ready to embark on a major push toward the development of a digital currency. A group of about 70 Japanese companies announced this week their intention to launch a yen-based cryptocurrency next year, according to the consortium’s secretariat, DeCurret, in a whitepaper and progress report published Thursday.
/bit.ly/3FQhBms

Turks Abandon the Lira for Dollars as Currency Crisis Deepens; Riot police line streets in parts of Istanbul as country braces for third night of scattered protests over President Erdogan’s inability to stop precipitous currency decline
Jared Malsin and Anna Hirtenstein – WSJ
A currency crisis here is battering Turks’ confidence in their government’s ability to manage the economy, causing droves of people to buy U.S. dollars and sending crowds of people into the streets to oppose President Recep Tayyip Erdogan’s policies.
/on.wsj.com/3CUkyQQ

FSB Commonwealth of Independent States (CIS) group discusses risks relating to high debt levels and crypto assets
FSB
The Financial Stability Board (FSB) Regional Consultative Group (RCG) for the Commonwealth of Independent States (CIS) held a virtual meeting today. Members discussed vulnerabilities in the global financial system that are of particular relevance to CIS economies and Emerging Market and Developing Economies (EMDEs) more generally. Topics covered included: Longer-term financial risks stemming from the COVID-19 pandemic, in particular, corporate and household over-indebtedness and possible policy responses.
/bit.ly/3nPFJPP

Casino Stocks in China’s Gambling Hub Are Out of Luck; Macau’s gambling stocks have fallen this year as the pandemic keeps the Chinese territory closed off to visitors
Elaine Yu – WSJ
Coronavirus flare-ups and a regulatory overhaul are clouding the long road to recovery for China’s gambling hub. Macau’s gaming stocks have lost between 23% and 56% since the start of 2021, as the second year of the pandemic has kept what used to be the world’s most lucrative gambling market largely closed off to outside visitors. They fell steeply Friday amid a broader international selloff triggered by concerns about a new, fast-spreading coronavirus variant.
/on.wsj.com/2ZqseNf

Fewer Hong Kongers Are Applying for New U.K. Visa Program
Foster Wong – Bloomberg
The number of Hong Kongers applying for a visa that provides a pathway to U.K. citizenship continues to fall. The decline comes as the pandemic continues to weigh on international travel. The high death rate in the U.K. as the virus spreads may be deterring some applicants, while anybody returning to Hong Kong to visit family faces spending as many as three weeks in a hotel as part of quarantine measures.
/bloom.bg/3xsmwqt

Singapore’s Alleged Nickel Scammer Sued in $377 Million Action
Chanyaporn Chanjaroen – Bloomberg
Singaporean businessman Ng Yu Zhi, who is at the center of an alleged $1.1 billion nickel trading scam, was sued by the liquidators of his Envy Group for damages totaling about S$517.4 million ($377.3 million), according to a court document.
/bloom.bg/3DVn9v7

Miscellaneous

Paris Plans Electric Flying Taxi Routes in Time for Olympics
Tara Patel – Bloomberg
France is planning to develop two routes near capital region; Volocopter, Airbus, Lilium among participating companies
France will begin testing electric air taxis in coming months at a hub outside Paris with the goal of having two dedicated flight paths to ferry passengers in time for the 2024 summer Olympics. One route would link Paris-Charles de Gaulle and Le Bourget airports and the other would be between two suburbs southwest of the French capital, according to a statement Thursday from Aeroports de Paris.
/bloom.bg/3E2Oqw4

Making sense of the Great Resignation; Labour markets have been reshaped by the pandemic in different ways
The editorial board – FT
The pandemic sparked a wave of speculation about what, on the other side, the world of work would look like. Perhaps, as in the aftermath of the Black Death, it would permanently tilt the balance of power towards labour. Or perhaps the brush with mortality would lead to millions re-evaluating their priorities, opting for a new work-life balance, aided by the spread of work-from-home arrangements. A much worse alternative was that the biggest fall in economic activity on record could, without proper monetary and fiscal support, lead to a repeat of the Great Depression, with stubbornly high joblessness and low job growth for decades.
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