Europe Poised to Delay Basel Bank Trading Rules by a Year

Jun 12, 2024

First Read

Hits & Takes
John Lothian & JLN Staff

CME Group is now accepting registrations for the 4th annual Derivatives Trading Challenge for the MENA region. In collaboration with the Dubai Mercantile Exchange, Gulf Capital Market Association, and Arab Federation of Capital Markets, the challenge runs from June 30 to July 12. Participants will engage in a live simulation of futures trading across six asset classes. Register HERE.

The Wall Street Journal is reporting that Goldman Sachs, Google, and BlackRock are among the top companies competing in a global corporate chess championship to determine the “smartest company in the world.” Len Ioffe, a managing director at Goldman Sachs, recalls celebrating his promotion by playing a chess match for Goldman’s corporate team. This weekend, Ioffe and his colleagues will compete in the FIDE World Corporate Chess Championship, facing teams from other blue-chip companies like Deutsche Bank and BlackRock. The competition aims to crown the most intellectually superior company, without any prize money involved.

Euronext reported on LinkedIn that “MTS has successfully migrated its Primary Data Centre to a cutting-edge facility in Bergamo – the Aruba Global Cloud Data Centre IT3.”

How much does freedom cost? We have an idea about the cost of announcing it. Barron’s is reporting that “A Copy of The Declaration of Independence Could Sell for $5 Million at Sotheby’s.”

Barron’s is also reporting that “The World’s Richest Will Transfer $31 Trillion-Mostly to Gen X-by 2033, Study Finds.” The story says within the next decade, 1.2 million people with at least $5 million each will transfer an estimated $31 trillion to their heirs, according to a study by London-based data firm Altrata. About two-thirds of this wealth, or $19.9 trillion, will be passed on by 2033 by approximately 155,000 individuals with a net worth of $30 million or more. Most of the recipients will be individuals in their mid-to-late 40s, part of Generation X, contrary to the common belief that millennials or Gen Z will be the primary beneficiaries.

I have updated the MarketsWiki Jobs Postings page, which includes images of key MarketsWiki sponsors with links to their respective jobs listings or career pages on their websites. Some of the sponsors had updated their websites and links, so ours were out of date. The Jobs Listings page on MarketsWiki has traditionally been one of the site’s most popular pages.

I am headed to London and IDX on Saturday. Next week, London is expected to experience mixed weather conditions. The forecast indicates a combination of cloudy skies and light rain throughout the week, with temperatures ranging from the mid-50s to low 70s Fahrenheit (approximately 13°C to 22°C). Early in the week, expect overcast conditions with occasional sprinkles, particularly on Wednesday and Thursday. Friday will see more persistent cloud cover and light rain. The weekend will bring similar weather, with isolated thunderstorms and decreasing cloudiness on Saturday, followed by sprinkles and broken clouds on Sunday.

While this is not an ideal forecast, it is much better than in South Florida, specifically Sarasota, where I have a home. Rainfall records are being broken across South Florida, with a storm system causing significant flooding and more downpours expected through the weekend. On Tuesday, Sarasota-Bradenton saw 6.47 inches of rain, Fort Lauderdale 3.3 inches, and Miami International Airport 3.59 inches. Forecaster Peter Mullinax from the US Weather Prediction Center predicts continued showers through the weekend, with up to 9 more inches possible in some areas. This persistent heavy rainfall poses a serious flooding risk, necessitating caution and preparedness in the affected regions.

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


The World Economic Forum has released its Global Gender Gap Report for 2024. Since 2006, the Global Gender Gap Index has annually benchmarked gender parity across four key dimensions: economic participation and opportunity; educational attainment; health and survival; and political empowerment. The report found that despite some advancement this year, progress has slowed, and at the current rate, it will take 134 years to achieve full parity, far beyond the 2030 Sustainable Development Goal (SDG) target. Download the report HERE.~SAED

Our most read stories from our previous edition of JLN Options were:
As GameStop shares gyrate, Roaring Kitty faces ticking clock on options from Ruters via Yahoo Finance.
CME Group Volatility Index from CME Group.
The role of the FCM: Futures Discovery EP 10 from John Lothian News. ~JB

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


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

This year’s annual Russell Reconstitution is fast approaching, with less than one month to go until ‘recon day,’ when our recalibration of the Russell US Indexes takes effect.

As one of the most widely anticipated market events, Reconstitution ensures that the indexes continue to accurately reflect the current state of the US equity markets and their market capitalization segments (large cap, mid cap, small cap, micro-cap), industry breakdowns and style segment.

Join experts from Cboe Global Markets, CME Group and FTSE Russell who will discuss how Russell Indexes have undergone a series of methodology enhancements over the years, and current market opportunities. Register now:

Learn more:

Russell Reconstitution website
Read the research > Four Decades of Russell Indexes Reconstitution
Read the research > Untangling the differences between the Russell 1000 Index and S&P 500


Baton Systems CEO Outlines Expansion, Future of Collateral Sector

Arjun Jayaram, founder and CEO of Baton Systems, discussed the company’s expansion plans and the future of the collateral sector in an interview at the FIA’s International Futures Industry Conference.

Jayaram said Baton is seeing increased demand to extend its core collateral products beyond cleared derivatives markets into uncleared derivatives and the broader collateral ecosystem. This includes providing real-time asset inventory visibility, eligibility mapping across venues, and facilitating mobilization of collateral assets.

Watch the video »


The role of the FCM: Futures Discovery EP 10

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 »


The Internet Isn’t Getting More Toxic. It Just Feels That Way; Being rude to one another online is “an inherent part of our behavior.”
Joshua Brustein – Bloomberg
As conventional wisdom would have it, the internet is more toxic than ever. Anyone old enough to have been around during the 2010s can remember Twitter as a place where people made friends and Instagram as a distribution platform for breakfast-plate portraiture. Now, it seems, we’re all locked in unending flame wars, egged on by malevolent algorithms, foreign agents and nefarious bots. A group of researchers tested this thesis by gathering 500 million comments people had made at different times in the past 34 years on eight popular online platforms, from Usenet to Facebook. The team then ran the data through a machine-learning tool Google developed to help moderators flag toxic content, which it classifies as any “rude, disrespectful or unreasonable comment likely to make someone leave a discussion.”

***** I remember the Wild West days of the internet when I first joined it. It was pretty toxic back then.~JJL


Strands Technologies, Ltd., a Global Fintech, has Secured over $3M in Pre Seed Investment; Independent software vendor (ISV) Strands is a commercial solution that strands together on-chain and traditional markets to power the future of fintech.
Ethan Lee –
Strands, a global Fintech using a proprietary ecosystem of novel smart contracts and transactional gateways to develop the most advanced traditional and decentralized institutional tools ever brought to market has announced a friends and family oversubscribed round totaling over $3M including an investment from Wedbush Financial Services. This initial round has allowed Strands to build out its founding team, launch several pilots in production, and create its proof of vision starting with Strands Singularity, the firm’s unified interface, seamlessly powered by the elite backend of Strands Connect.

***** This is a company to watch.~JJL


Tuesday’s Top Three
Our top clicked item Tuesday was the JLN video The role of the FCM: Futures Discovery EP 10, part of our series hosted by Corties Draper. Second was Pre-IPO Investment Scams – Investor Alert, from the SEC’s Third was The David Setters Cricket Trophy 2024 – Fundraising for Motor Neurone Disease Association, from Daniel Carter at Just Giving.



Lead Stories

Europe Poised to Delay Basel Bank Trading Rules by a Year; EU lenders fear being disadvantaged by early implementation;p Some regulators worry about a more changes to landmark package
Laura Noonan, Sonia Sirletti, Steven Arons, and Nicholas Comfort – Bloomberg
The European Union is set to delay key parts of global bank capital rules by a year, so that the bloc’s lenders will not be disadvantaged by continued wrangling over the standards in the US, according to people familiar with the matter. The EU was due to implement the wider package starting Jan. 1, some seven years after the measures were agreed by regulators on the Basel Committee on Banking Supervision as the final part of rule-making designed to prevent a repeat of the 2008 financial crisis. The EU now plans a later implementation for rules that affect banks’ trading businesses, since those activities are global in nature, said the people familiar with the matter, who asked not to be named because a decision hasn’t yet been announced.

Barclays Warns Treasuries Overhaul Will Stunt Systematic Trading
Alice Atkins and Alice Gledhill – Bloomberg
A sweeping regulatory change that’s set to rewire the way US Treasury trades clear will likely stunt advancements in sovereign bond electronic trading strategies, according to Barclays Plc. The Securities and Exchange Commission’s overhaul is intended to strengthen the resilience of the $26 trillion US Treasuries market after a series of liquidity breakdowns in recent years. But there’s a likelihood that the move, which is set to culminate in mid-2026, will increase friction by forcing the majority of Treasuries transactions to be cleared centrally, according to Barclays head of research Jeff Meli.

Nasdaq Private Market Explores Private IPOs for Stakes
Amy Or – Bloomberg
Nasdaq Private Market is seeking to be the first in the US to offer companies the option of holding so-called private IPOs, giving venture capital and buyout firms more options to realize the value in their portfolios. The firm is having conversations with several large VC and private equity firms about providing them with opportunities to divest stakes in portfolio companies at regular intervals, as the market for initial public offerings isn’t yet fully open.

DTCC’s FICC Launches CCLF Public Calculator to Support Expansion of U.S. Treasury Clearing; In anticipation of the new SEC requirements for expanded U.S. Treasury Clearing, this new tool simulates estimated CCLF obligations associated with FICC GSD membership
DTCC, the premier post-trade market infrastructure for the global financial services industry, today announced the launch of FICC’s interactive, public-facing Capped Contingency Liquidity Facility (CCLF) Calculator. With the expansion of central clearing in U.S. Treasuries on the horizon and given the size of transactions in the U.S. Treasury market – now exceeding USD $7 trillion daily – CCLF is a critical risk management tool used for managing DTCC’s Fixed Income Clearing Corporation’s (FICC) liquidity risk arising from settlement activity. Market participants can input their current unique settlement activity into the calculator to estimate and understand the CCLF-related liquidity obligations that could arise from membership.

DTCC’s FICC launches new contingency liquidity calculator; New tool coincides with new SEC requirements for expanded US Treasury clearing, simulating estimated CCLF obligations linked to FICC Government Securities Division membership.
Wesley Bray – The Trade
DTCC’s Fixed Income Clearing Corporation (FICC) has launched an interactive, public facing Capped Contingency Liquidity Facility (CCLF) calculator to support the expansion of US Treasury clearing. With the size of transactions in the US Treasury market now exceeding $7 trillion daily, CCLF is will serve as a risk management tool used for managing FICC’s liquidity risk linked to settlement activity.

US corporate bond trading automation pegged as key technology priority for 2024, finds report; With trading volumes for US corporate bonds up 34% year-on-year, the only feasible way to meet this demand is to price and quote bonds faster than a human could via point-and-click, finds Coalition Greenwich report.
Wesley Bray – The Trade
Building on top of the increased electronification of the US corporate bond market over the past decade, trading automation is now the key focus area according to a new report from Coalition Greenwich. The majority of surveyed participants (65%) told Coalition Greenwich that their primary technology priority for this year was automating parts of the corporate bond trading process.

World faces ‘staggering’ oil glut by end of decade, energy watchdog warns; IEA predicts more than 8mn b/d of excess capacity by 2030 as producers invest in pumping more crude
Malcolm Moore – Financial Times
The world faces a “staggering” surplus of oil equating to millions of barrels a day by the end of the decade, as oil companies increase production, undermining the ability of Opec+ to manage crude prices, the International Energy Agency has warned. While demand is forecast to peak before 2030, continued investment by oil producers, led by the US, would by then result in more than 8mn b/d of spare capacity, the IEA wrote in its annual report on the industry released on Wednesday. This “massive cushion” of extra oil could “upend” the efforts of Opec+ to manage the market and usher in an era of lower prices, the IEA said, adding that the level of spare capacity would be unprecedented outside the coronavirus pandemic.

SEC Charges Founder of AI-Powered Hiring Startup Joonko With Fraud; The regulator alleges Ilit Raz told investors that the firm had more customers than it actually had and gave them fake testimonials, false bank statements and forged contracts
David Smagalla and Marc Vartabedian – The Wall Street Journal
The Securities and Exchange Commission charged the founder and former chief executive of a now-bankrupt artificial-intelligence recruitment startup with defrauding investors out of at least $21 million, the latest sign the regulator is keeping watch on the bold claims made by AI startups and investors about the technology’s capabilities. Joonko claimed to use AI to help its clients find diverse candidates to fulfill their diversity, equity and inclusion hiring goals, according to the SEC.

China Weighs Ban on Bank Distribution of Hedge Fund Products; Seeking feedback on revisions to prohibit ‘disguised’ selling; Move would deal further blow to sector already under scrutiny
Bloomberg News
Chinese regulators are considering tougher restrictions on how banks sell financial products to the public, in a move that could cut off a major distribution channel for some of the nation’s largest hedge funds, according to people familiar with the matter. The National Financial Regulatory Administration is seeking feedback from commercial banks on revisions that would ban “disguised” selling of so-called private fund products, a category that includes hedge funds, the people said, asking not to be identified as the consultations are private. Banks have for years been one of the key distributors of hedge funds, which typically raise money from investors in the form of trust products that is then invested into their funds.

US regulators have vertical integration in their sights; For years, enforcers focused mainly on horizontal deals, but now that is changing
Brooke Masters – Financial Times
Vertical integration is all the rage as companies scramble to compete in artificial intelligence and decarbonisation. They believe that exerting more sway over suppliers and sales channels will help them speed innovation and cope with geopolitical disruption. But is it better to buy the necessary supplies and smarts, develop them in-house or find some way to strike a partnership? Last year, General Motors purchased a lithium mine to secure crucial minerals for its electric vehicles. Chinese rival BYD already controls most of its supply chain, down to the ships that transport its cars and it is reportedly on the hunt for acquisitions as it looks to expand.

Swiss parliament snubs European court climate ruling
Emma Farge – Reuters
The lower house of the Swiss parliament voted on Wednesday to reject a ruling ordering Switzerland to do more to combat global warming in a move that could encourage others to resist the influence of international courts. In April, the European Court of Human Rights (ECHR) in Strasbourg issued an unprecedented judgment that said Bern had violated the human rights of a group of older Swiss women, the KlimaSeniorinnen, by failing to tackle climate change.

China Scoops Up American Soy After Brazil’s Surprise Tax Change
Tarso Veloso – Bloomberg
A surprise tax change in Brazil, the world’s largest soybean exporter, is prompting Chinese buyers to snatch up US supplies. Importers in China, the top commodities buyer, purchased at least 208,000 tons of soy since the change was announced last Tuesday, according to data from the US Department of Agriculture. The flash sales were the first transactions of the kind since January.

China’s Waning Hunger for Grain Spells Trouble for World Market
Hallie Gu – Bloomberg
China’s appetite for overseas wheat and corn is dwindling rapidly, which is likely to heap pressure on world grain markets that have grown accustomed to robust demand from the world’s top agricultural importer. Buyers in China haven’t been observed making any major purchases for a couple of months, according to a number of traders. With domestic prices so low, that trend is likely to continue through the third quarter, they said, declining to be identified discussing sensitive commercial matters.

ECB flags euro risks from Russia as global forex reserves dip; Global central bank holdings of the single currency fell by EUR100bn last year, the European Central Bank said in a report
Martin Arnold – Financial Times
The euro’s share of global foreign exchange holdings fell last year amid concerns that plans to use frozen Russian assets to finance Ukraine could further erode the appeal of Europe’s single currency. Other countries cut euro assets in their central bank reserves by about EUR100bn last year, a drop of nearly 5 per cent, the European Central Bank said in a report published on Wednesday. That reduced the single currency’s share of global foreign exchange reserves to a three-year low of 20 per cent.

AI Startup Perplexity Says News Summary Tool Has ‘Rough Edges’; Media companies and AI startups have tangled over how much copying is fair use.
Shirin Ghaffary – Bloomberg
Perplexity AI, a startup building a real-time artificial intelligence-powered search engine to compete with Alphabet Inc.’s Google, has launched a new feature that repackages some news outlets’ work with minimal attribution – an issue the company’s founder said it’s working to address. In a post on X on Friday, a Forbes reporter pointed out similarities between a Perplexity news summary and a Forbes article. “You scraped and repurposed investigative reporting gathered over months, fleshed it out with re-blogs of the same story by other outlets, and do not even bother to name us in your regurgitated post,” wrote Forbes editor John Paczkowski.

TradeStation Securities Integrates with Bot-Trading Platform Option Circle; Seamless integration allows TradeStation Securities brokerage clients to leverage bot trading from the Option Circle platform
TradeStation Securities, Inc.
TradeStation Securities, Inc. (“TradeStation Securities”), an award-winning,* self-clearing online brokerage firm for trading stocks, options, futures, and futures options, announced its integration with Option Circle. As a U.S. multi-asset class broker-dealer, TradeStation Securities’ integration with the Option Circle platform provides Option Circle users with market access and trading within Option Circle’s suite of tools without the need for a separate brokerage platform.

Ukraine Invasion

US to widen sanctions on sale of semiconductor chips to Russia, sources say
Andrea Shalal – Reuters
The U.S. government plans on Wednesday to announce wider sanctions on the sale of semiconductor chips and other goods to Russia, with the goal of targeting third-party sellers in China, sources familiar with the plans said late on Tuesday. The moves are part of a broad push by the Biden administration to respond to Russia’s efforts to circumvent Western sanctions and choke off its war effort against Ukraine.

***** Here is a Financial Times version of this story.~JJL

Russian barrage leaves Kyiv residents without power and water
Anastasiia Malenko – Reuters
When the power goes down and the elevator stops working, Ukrainian couple Maryna and Valeriy Tkalich leave the pushchair on the ground floor and carry their two-month-old son up the 12 flights of stairs to their apartment instead. And once authorities in Kyiv have notified residents of upcoming scheduled electricity outages, the Tkaliches rush to bathe little Marian and prepare food for the family before the lights go out and taps run dry. Such disruptions are becoming increasingly common for the city’s population of about three million people, after Russia began pummelling the country’s energy system in late March, cutting out half of its generating capacity.

How a Russian Operative Worked to Shape Moscow’s Story in Europe; Agent had frequent contacts with journalists about Ukraine; US and EU are stepping up efforts to combat disinformation
Alberto Nardelli – Bloomberg
A Russian intelligence operative who’s leading a Kremlin disinformation campaign in Africa has helped run influence operations in Europe for years, according to documents seen by Bloomberg and government officials familiar with the matter. Artem Kureyev, identified as a Russian Federal Security Service agent in an Estonian court case in 2022, has had frequent contacts with at least half a dozen European journalists, arranged and covered travel costs for some of them to visit occupied territories in Ukraine, and at times appears to have offered to pay for planted news articles, the documents show.

Opinion: Putin has missed his chance to crush Ukraine
Francis Dearnley – The Telegraph
Fighter jets roar overhead, artillery booms, a crowd cries out. Not scenes in Ukraine, for once, but Normandy, where President Biden – surrounded by white crosses – chose to connect the conflict in Ukraine with the sacrifice his countrymen made 80 years before. “Ukraine has been invaded by a tyrant bent on domination,” he said at the D-Day anniversary last week. “To surrender to bullies, to bow down to dictators is simply unthinkable. Were we to do that, it means we’d be forgetting what happened here on these hallowed beaches.”

Kyiv hopes Russia will attend second Ukraine peace summit
Robin Millard – AFP
Ahead of the first summit on peace in Ukraine, Kyiv said Tuesday it wanted Russia to attend a second summit, to receive an internationally agreed roadmap towards ending the conflict. Moscow said it had no interest in joining this weekend’s meeting and so was not invited by hosts Switzerland, while Ukraine wants to get some concrete outcomes from the meeting to take forward to the second summit.

US will send Ukraine another Patriot missile system after Kyiv’s desperate calls for air defenses
Lolita C. Baldor – Associated Press

G-7 to Call on China to Stop Helping Russia’s War in Ukraine; G-7 leaders are set to gather in Italy for their annual summit; The draft communique seen by Bloomberg is yet to be finalized
Alberto Nardelli – Bloomberg

Aon unveils $350mn war cover scheme for Ukrainian businesses; Insurance plan developed with US agency will help underpin eventual reconstruction effort
Ian Smith and Isobel Koshiw – Financial Times

Israel/Palestine Conflict

Israel kills most senior Hezbollah commander since war began
Nicola Smith – The Telegraph
Israel has killed its most senior Hezbollah commander since the Oct 7 Hamas attack, prompting the Lebanon-based terror group to retaliate with a barrage of up to 160 rockets. The militants’ response, one of the largest attacks in the escalating conflict on Israel’s border with Lebanon, targeted the city of Tiberias for the first time. It was largely intercepted by Israel’s sophisticated Iron Dome air defence system.

Hamas demands changes to Biden ceasefire plan; Palestinian militant groups offer ‘amendments’ to US-backed proposals with talks to continue via mediators
Mehul Srivastava and James Shotter – Financial Times
Hamas has demanded changes to a ceasefire proposal backed by the US and the UN Security Council, complicating talks on a plan to free Israeli hostages in a first step towards winding down the war in Gaza. The precise Hamas amendments to the four-and-a-half page proposal, first unveiled by US President Joe Biden, remain unclear. But the militant group said late Tuesday that its response to mediators Qatar and Egypt showed “readiness to deal positively”.

Hezbollah Fires Rocket Barrage Into Israel After Death of Commander; Escalation comes after Hamas hardened its position on cease-fire talks with Israel over the war in Gaza
Rory Jones and Summer Said – The Wall Street Journal
Hezbollah fired a barrage of rockets at Israel on Wednesday after a suspected Israeli strike in southern Lebanon killed one of the militant group’s senior commanders, an escalation of violence that threatens to expand the war in the Gaza Strip to Israel’s border with Lebanon. The exchange of fire comes as a prospective cease-fire deal in Gaza that could also end the hostilities between the Lebanese militia and Israel appears to be at an impasse. Hamas on Tuesday renewed its insistence on a permanent cease-fire, which Israel says it can’t yet accept.

Exchanges, OTC and Clearing

CanDeal Sets Daily Record for Canadian Fixed Income Trading
CNW Group
CanDeal Markets Inc. (CanDeal Markets), a leading institutional electronic marketplace for Canadian debt and derivatives, has set a new daily trading record of $67.8 billion on June 3, 2024. This marks a new milestone for electronic dealing in Canadian dollar products for CanDeal’s global community of more than 2,000 participants, inclusive of Canada’s major financial institutions.

ION receives certification for cash equities trading on BSE; As a registered Independent Software Vendor, and with ION’s Fidessa used for connectivity outside of India, the move will help support the continued growth of Indian capital markets.
Wesley Bray – The Trade
ION has been registered as an Independent Software Vendor (ISV) with BSE, formerly Bombay Stock Exchange. As part of the move, ION’s Fidessa trading platform is now certified for cash equities trading on BSE. After completing the audit process, BSE has since certified Fidessa as compliant with all relevant exchange rules and regulatory standards, allowing exchange members to use the platform for equities trading on BSE.

Modification to Stress Shortfall Margin Add-on Program Parameters – Effective July 01, 2024
CME Group
Effective at the end of day cycle on Monday, July 1st, 2024, the stress shortfall margin add-on threshold will be raised to $1.6 billion and the percentage parameter determining the size of the Add-on charge will be increased to 70%. Please see the full advisory for additional details.

Euronext announces June 2024 quarterly review results of the AEX Family
Euronext today announced the results of the June 2024 quarterly review for the AEX, AMX, AScX and AEX ESG, which will be implemented after markets close on Friday 21 June 2024 and will be effective from Monday 24 June 2024.

Closure Of Bursa Malaysia In Conjunction With Hari Raya Aidiladha Date
Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”) and its subsidiaries will be closed on 17 June 2024 (Monday), in conjunction with the national public holiday for Hari Raya Aidiladha. Bursa Malaysia and its subsidiaries will resume operations on 18 June 2024 (Tuesday).

Whitepaper A Strong Capital Market
Boerse Stuttgart Group
Policy Recommendations for a strong capital market

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.

HKEXVoice On HKEX’s Technology Journey: Precision Engineering
In this episode of HKEXVoice, HKEX Group Chief Information Officer Richard Leung and Group Chief Technology Officer John Hsu take us through our technology journey, discussing why we are taking a significant step to own our digital destiny by making long-term investments in our market infrastructure. This podcast is now available on HKEX’s Group website.

Trader Alert 24-31: Holiday Reminder – Closed June 19, 2024
Kristin Visnovske – MEMX
MEMX Equities and MEMX Options will be closed Wednesday, June 19, 2024, in observance of Juneteenth National Independence Day. Normal trading will resume on Thursday, June 20, 2024. MEMX Market Hours and Holiday Schedule Please contact Market Operations with any questions. MEMX Market Operations 1-833-415-6677 .

Regular Constituents Change in Korea/Taiwan IT Premier Index in June, 2024
There will be regular constituents change in Korea/Taiwan IT Premier Index effective from June 17, 2024.

Nasdaq Executives to Present at Upcoming Investor Conferences
Nasdaq (Nasdaq: NDAQ) will be presenting at the following conferences in June with webcasts available at Nasdaq’s Investor Relations website:

NSE Indices launches Nifty200 Value 30 Index
National Stock Exchange of India
NSE’s index services subsidiary, NSE Indices Limited today launched a new strategy index – Nifty200 Value 30. The Nifty200 Value 30 Index aims to track the performance of 30 companies from its parent Nifty 200 index, selected based on their ‘value’ scores. The value score of each company is determined based on Earnings to Price ratio (E/P), Book Value to Price ratio (B/P), Sales to Price ratio (S/P) and Dividend Yield. Stock weights are based on a combination of the stock’s value score and its free-float market capitalization. Stock weights are capped at the lower of 5% or 5 times the weight of the stock in the index based only on free float market capitalization.

SIX Launches Quote on Demand for Bonds to Improve Trading
On Monday 10 June 2024, SIX introduced the Quote on Demand (QOD) service for CHF Bonds on SIX Swiss Exchange. It utilizes the Request For Quote (RFQ) functionality that SIX has already successfully launched to improve liquidity for ETF and ETP trading. In recent years, RFQ has become the dominant market model in bonds trading. To strengthen the market share of SIX Swiss Exchange, SIX introduces QOD for CHF Bonds, a RFQ functionality aimed at improving liquidity, automating processes, and reducing costs and risks for trading participants on the Swiss stock exchange.

TFEX And RAOT Join Forces To Develop Rubber Reference Prices
Thailand Futures Exchange PCL (TFEX) has entered into a Memorandum of Understanding (MOU) with the Rubber Authority of Thailand (RAOT) for collaboration to establish the standardized Rubber Reference Prices. These benchmarks will serve as references trading transactions for both domestic and international players and facilitate the development of related products. TFEX Managing Director Rinjai Chakornpipat said that the initiative is aimed to develop a recognized Rubber Reference Prices for Thailand, which will benefit both the rubber and related industries.

Taiwan Futures Exchange Newsletter
TAIFEX Posted Volume Increase and Record-High Open Interest in Equity Futures. In the first five months of the year, the Taiwan Futures Exchange (TAIFEX) witnessed significant growth in trading volume compared to the same period last year.

Tehran Securities Exchange, Tehran Chamber Sign Cooperation Agreement – TSE Will Make New Steps Financing Local Companies In A Cooperation With The Tehran Chamber
The 16th meeting of the Tehran Chamber (TCCIM)’s representatives was attended by Dr. Mahmoud Goudarzi, CEO of Tehran Securities Exchange (TSE) on Tuesday 11 June 2024, and a memorandum of understanding was signed between TSE and the Tehran Chamber. In this memorandum, several grounds of cooperation in the fields of financing public companies, holding joint meetings between chambers of regional countries and regional exchanges, establishing a Green Channel for listing and offering of corporate shares, as well as facilitating the authorization of PE fund licenses, introduced by Tehran Chamber, have been considered.

First Initial Access Document on BME Scaleup from INBEST GPF I, INBEST GPF II and INBEST GPF V
This brings to seven the number of companies that have registered an Initial Access Document to this market. The Market Coordination and Incorporations Committee considers that INBEST GPF I SOCIMI, INBEST GPF II SOCIMI e INBEST GPF V SOCIMI, will meet the requirements to join BME Scaleup. The Boards of Directors of INBEST GPF I, INBEST GPF II and INBEST GPF V have taken as a reference for the commencement of trading of the shares a price of one euro per share, which represents a total value of the companies of 14.85, 12.63 and 13.65 million euros, respectively.

The Moscow Exchange unifies the trading schedule on the foreign exchange market and the precious metals market
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.


What the Apple-OpenAI Deal Means for Four Tech Titans; Deal strengthens OpenAI’s position, raises questions about startup’s relationship with Microsoft-and is a setback for Google
Deepa Seetharaman, Aaron Tilley and Miles Kruppa – The Wall Street Journal
OpenAI’s deal with Apple is shaking up the competitive balance in the artificial intelligence race. The new agreement, announced Monday, gives the startup an important role in Apple’s push to bring AI to its vast population of users. At the same time, Apple rival Microsoft-OpenAI’s most important big tech partner-is also trying to make headway in consumer AI. The OpenAI-Apple collaboration deals a setback to Google, which has long paid Apple billions of dollars a year to be its default tool for internet searches.

Downplaying AI’s existential risks is a fatal error, some say; Policy experts say Congress should act before AI systems become even more advanced
Gopal Ratnam – Roll Call
A handful of lawmakers say they plan to press the issue of the threat to humans posed by generative artificial intelligence after a recent bipartisan Senate report largely sidestepped the matter. “There’s been no action taken yet, no regulatory action taken yet, at least here in the United States, that would restrict the types of actions that could lead to existential, or health, or other serious consequences,” Sen. Mitt Romney, R-Utah, said in an interview. “And that’s something we’d like to see happen.”

Elon Musk drops lawsuit against OpenAI and Sam Altman; No reason given for dismissal of breach-of-contract claims against the ChatGPT maker that Tesla boss split from in 2018
Tabby Kinder – Financial Times
Elon Musk has withdrawn his lawsuit against OpenAI and its chief executive Sam Altman three months after he accused them of compromising the start-up’s original mission to benefit humanity. The billionaire owner of X and chief executive of Tesla filed to voluntarily dismiss his breach of contract claims at a San Francisco court on Tuesday. The filing did not elaborate on the reason for the dismissal.

Oracle Shares Set for Record High on AI-Fueled Cloud Growth; Company signs partnership agreements with Microsoft, OpenAI
Brody Ford – Bloomberg
Oracle Corp. reported better-than-expected bookings and announced partnership deals with tech rivals, giving a boost to Chairman Larry Ellison’s effort to redefine the software maker as a major competitor in the business of cloud computing. The company, known for its database software, is focused on expanding its cloud infrastructure unit – which rents computing power and storage – to compete with Inc., Microsoft Corp. and Alphabet Inc.’s Google. While this division produces a small portion of total sales, investors view it as Oracle’s major future growth bet.

SK’s AI Chip Startup Sapeon Agrees to Merge With Rebellions
Yoolim Lee – Bloomberg
SK Telecom Co.’s artificial-intelligence chip startup unit Sapeon Korea Inc. and rival Rebellions Inc. have agreed to combine their businesses, joining forces in a bid to compete globally and capitalize on booming demand for AI services.

Adobe Results to Reveal Scale of Threat From GenAI Competition; Several software companies have disappointed this season; Adobe has worked to reassure investors since March report
Ryan Vlastelica – Bloomberg

Tesla Robotaxi Revenue Is Likely Years Away, JPMorgan Warns; Analyst bases his expectation on meeting with IR director; CEO Elon Musk’s self-driving predictions haven’t panned out
Craig Trudell – Bloomberg

AI startup Perplexity accused of ‘directly ripping off’ news outlets like Forbes, CNBC without proper credit
Thomas Barrabi – NY Post


Why Google and Microsoft can’t defuse U.S. health care’s ticking cybersecurity problem
Casey Ross and Mohana Ravindranath – Stat
Facing a worsening cybersecurity crisis in health care, the Biden administration has followed a familiar political playbook: Call the biggest names in technology and secure promises, and money, to fix the problem. Microsoft and Google followed through this week with offers of training and software discounts to help the nation’s rural hospitals secure their data systems. But a big question remains: Will their combined efforts really stem the rising tide of ransomware attacks?

New Bitdefender Survey of 1,200 Cybersecurity Professionals Reveals Top Concerns and Challenges for Businesses Globally; An Astounding 96% find Generative AI Technology a Threat; Increased Data Breaches and Overall Pressure Is Driving 64% To Look for New Jobs in the Next 12 Months
Bitdefender, a leading global cybersecurity company today released the 2024 Cybersecurity Assessment Report, based on an independent survey and analysis of cybersecurity professionals revealing top security concerns, practices, and key challenges businesses are facing across their environments.

22% of cybersecurity professionals have ignored an alert
Taelor Daugherty – Security
Security leaders’ cybersecurity preparedness was analyzed in a recent report by Coro. According to the survey, 73% of SME security professionals have missed, ignored or failed to act on critical security alerts, with respondents noting a lack of staff and a lack of time as the top two reasons.


Crypto Mainstream Adoption Has Increased in Recent Months, Canaccord Says
Will Canny – CoinDesk
Galaxy Digital (GLXY) is well positioned given its strong institutional exposure to benefit from the continued adoption of digital assets on a structural basis, broker Canaccord Genuity said in a research report on Monday raising its price target for the crypto financial services firm. Canaccord raised its Galaxy price target to C$23 from C$17 while maintaining its buy rating on the stock. The shares closed at C$16.25 on Friday.

Coinbase’s Former Head of Communications Joins Worldcoin
Ian Allison – CoinDesk
Elliott Suthers, the former head of corporate communications at U.S. cryptocurrency exchange Coinbase (COIN), has become head of comms for Europe, Middle East and Africa at Worldcoin {{WLD}}, the iris biometric crypto project founded in 2019 by OpenAI CEO Sam Altman. Suthers, who also has experience working in government policy in Washington, D.C., had been with Coinbase since 2018 and oversaw the growth of the business as it became a publicly traded company in the U.S.

Crypto Companies Sunak Tried to Woo Now Look to Starmer
Emily Nicolle – Bloomberg
Two nights before Prime Minister Rishi Sunak surprised the UK by calling a snap election, crypto executives were sipping wine and eating canapes on a House of Commons terrace, part of a months-long bid to build stronger links with British lawmakers and power brokers. The event was organized by US-based crypto exchange Coinbase Global Inc. and its adviser, former Conservative Chancellor of the Exchequer George Osborne. But while senior members of both of Britain’s two dominant political parties were there, the influence campaign had increasingly targeted Labour, given its large and consistent lead in polls.

Zimbabwe Seeks Input to Regulate Cryptocurrency Operations; Country is working to develop regulations for virtual assets
Godfrey Marawanyika – Bloomberg
Zimbabwe has asked for public input on cryptoasset operations as it works on regulatory policy for the sector. “In line with global trends and best practices, Zimbabwe is embarking on an exercise to assess and understand the cryptocurrency landscape,” the government said in a statement published in state-run Herald newspaper Wednesday. It’s “inviting all cryptocurrency service providers,” whether operating in or outside the country but giving services to customers in the nation, to make comments.

The ‘MicroStrategy of Japan’ Just Bought More Bitcoin-And Its Stock Predictably Pumped; MetaPlanet stock is up more than 4X since adopting a Bitcoin standard in April.
Andrew Throuvalas – Decrypt
Japanese investment firm MetaPlanet has added another 23.5 BTC to its balance sheet, bought for a total of 250 million yen (or about $1.6 million), according to a Thursday filing. Following the news, MetaPlanet’s stock on the Tokyo Stock Exchange pumped 10%, despite the price of Bitcoin itself falling more than 3% over the past 24 hours.


Biden Nears Pick for Next F.D.I.C. Chair; The front-runner for the bank regulatory job is Christy Goldsmith Romero, a member of the Commodity Futures Trading Commission.
Emily Flitter – The New York Times
Three weeks after President Biden vowed to pick a new leader for the Federal Deposit Insurance Corporation, the bank regulator shaken by a vast workplace abuse scandal, a front-runner has emerged: Christy Goldsmith Romero, who sits on the five-member Commodity Futures Trading Commission, according to two people with knowledge of the administration’s thinking.

BlackRock, Microsoft CEOs to Gather at G-7 Summit in Italy
Annmarie Hordern, Donato Paolo Mancini, and Chiara Albanese – Bloomberg
The chief executives of Microsoft Corp. and BlackRock Inc. will join Group of Seven leaders congregating at a summit in Italy this week to support Italian Prime Minister Giorgia Meloni’s push to invest in developing countries. Co-hosted by Meloni and US President Joe Biden, the invitees will include Microsoft’s Satya Nadella and BlackRock’s Larry Fink as well as heads of Italian energy companies Claudio Descalzi of ENI SpA and Enel SpA’s Flavio Cattaneo, according to three people familiar with the guest list who asked not to be named when discussing private matters of scheduling.

Donald Trump and Joe Biden campaigns set for duelling London fundraisers; US election rivals seek to tap wealthy expats as White House race reaches UK
Alex Rogers – Financial Times
Brexit champion Nigel Farage and fashion icon Anna Wintour will be at rival fundraising events for Donald Trump and Joe Biden in London this week as the battle for the US presidency crosses the Atlantic. Donald Trump Jr and his fiancée and former Fox News host Kimberly Guilfoyle will on Wednesday be at a Republican event organised by Holly Valance, the former Australian soap star turned rightwing political activist, alongside her husband, the British property tycoon Nick Candy.

Only 24% of Britons think country should be outside EU, report finds
Only a quarter of Britons believe the country should be outside the European Union, according to a report published on Wednesday, the lowest proportion since the 2016 vote to leave the bloc. Britain will hold a national election on July 4, its first since the country formally left the EU in 2020. Despite Europe having long been a divisive topic in British politics, the issue of Brexit has barely featured so far in the election campaign. The British Social Attitudes survey, carried out by the National Centre for Social Research, found 24% said Britain should be outside the EU, compared to 36% in 2019 and 41% in 2016.

David Cameron calls on Europe to turn off Russian gas to save Ukraine
Joe Barnes – The Telegraph
David Cameron called for Europe to halt all imports of Russian gas on Tuesday in a veiled jab at France, Belgium and Spain. The Foreign Secretary said the West had to be as “equally tough and precise” in targeting Vladimir Putin’s revenue streams as Russians were being with strikes on Ukraine’s energy infrastructure. “We know what Russia has tried to do. They are trying to destroy the energy system, they’re trying to take coking coal that is crucial for Ukraine’s iron and steel industry and they’re trying to destroy the gas storages in Ukraine,” Lord Cameron told a donor conference for the reconstruction of Ukraine.

Europe’s green backlash; Rightwing advances in EU parliament elections will lessen climate ambitions
The Editorial Board – Financial Times
The rise of populist and far-right parties in Sunday’s European parliament elections was partly mirrored by falls for green parties – even if the centre largely held. Five years after the euphoria the Greens experienced in 2019, when they increased their seats from 52 to 74, they slipped back to 53. The setback is unlikely to lead to a widescale rollback of EU climate policies. But it will surely mean less green ambition in the coming five years – with implications well beyond Europe. The Greens’ performance in 2019 may prove a high-water mark.

Victory for French far right could trigger Liz Truss-style debt crisis, warns finance minister; Sell-off in French government debt has pushed borrowing costs for some maturities above those of Portugal
Adrienne Klasa in Paris and Mary McDougall in London – Financial Times

Hungary agrees not to veto NATO support to Ukraine as long as it’s not forced to help out
Lorne Cook – Associated Press

NATO Chief Agrees to Hungary’s Opt-Out From Ukraine Support
Zoltan Simon, Andrea Palasciano and Aaron Eglitis – Bloomberg


Byju’s Hedge Fund Ally Can Avoid Arrest If He Answers Questions
Steven Church – Bloomberg
A federal judge moved to untangle the complex bankruptcy case of a Byju’s unit by offering to rule out the arrest of a Florida hedge fund manager if he helps locate $533 million that the Indian tech company allegedly tried to hide. US Bankruptcy Judge John Dorsey, during a court hearing Tuesday in Wilmington, Delaware, agreed to drop an arrest order for William C. Morton, the founder of Camshaft Fund. Byju’s invested $533 million of loan proceeds with the fund last year, according to court records.

SEC fines short-seller over secret payments to publisher of bearish reports on cannabis stocks
Louis Goss – MarketWatch
The U.S. Securities and Exchange Commission has fined a hedge fund $2.25 million for making secret payments to a researcher that published bearish reports and negative social media posts which helped drive down the prices of two cannabis stocks it was shorting. Money managers Anson Funds Management and Anson Advisors used their Cayman Islands registered Anson Investments Master Fund (AIMF) to take out short positions on cannabis stocks while also working with a publisher to distribute bearish information on those same firms, the SEC said in a statement.

Bathroom breaks were banned by Archegos boss accused of fraud, who allegedly ‘yelled’ at staff for stepping away while key stocks were moving
Eleanor Pringle – Fortune
Staff at family office Archegos Capital Management were reportedly “yelled” at by their boss, Sung Kook “Bill” Hwang, for taking bathroom breaks while the firm was allegedly orchestrating market manipulations.

Activist Hedge Fund Fined for Secret Payments to Researcher
Tom Schoenberg and Austin Weinstein – Bloomberg
A sweeping US probe of activist short sellers has yielded its first notable punishment, while offering a rare glimpse into controversial collaborations between bearish researchers and hedge funds that place big bets against companies. The Securities and Exchange Commission fined affiliated money managers Anson Funds Management and Anson Advisors Inc. a total of $2.25 million on Tuesday, accusing them of hiding payments to an unidentified publisher of bearish research. A hedge fund they oversaw generated more than $4 million in gains in late 2018 by collaborating with the outsider on the timing of negative reports and social media posts, the SEC said. It secretly paid the researcher $1.1 million.

SEBI Proposes Stricter Derivative Trading Rules Amid Surge in Options Market
The Securities and Exchange Board of India (SEBI) is proposing stricter regulations for trading in individual stock derivatives, such as futures and options (F&O), to mitigate market manipulation risks following a sharp increase in options trading activity, according to Reuters. In April 2024, sources revealed that India’s top financial regulators intended to form a committee to assess the stability risks posed by the expanding derivatives market. If SEBI’s proposals are enacted, many stocks out of the current 182 stocks would become ineligible for F&O trading.

SEC Appoints Erica Y. Williams to a Second Term as PCAOB Chairperson
The Securities and Exchange Commission today announced the appointment of Erica Y. Williams to a second term as Chairperson of the Public Company Accounting Oversight Board (PCAOB) beginning on Oct. 25, 2024, and running through Oct. 24, 2029. “I thank Erica for her leadership and am pleased that she will continue to serve as Chairperson of the PCAOB,” said SEC Chair Gary Gensler. “I also thank the PCAOB staff and the Board for their diligent work to ensure that public company financial disclosures can be trusted by investors.”

SEC Charges Founder of AI Hiring Startup Joonko with Fraud
The Securities and Exchange Commission today charged Ilit Raz, CEO and founder of the now-shuttered artificial intelligence recruitment startup Joonko, with defrauding investors of at least $21 million by making false and misleading statements about the quantity and quality of Joonko’s customers, the number of candidates on its platform, and the company’s revenue.

SEC Charges Individual in Fraudulent Investment Scheme Targeting the Haitian-American Community
The Securities and Exchange Commission today announced that it filed charges against Marc Henry Menard in the Eastern District of New York for allegedly defrauding more than fifty individuals, many from the Haitian-American community, of at least $1.65 million.

SEC Charges Founder of AI Hiring Startup Joonko with Fraud
The Securities and Exchange Commission today charged Ilit Raz, CEO and founder of the now-shuttered artificial intelligence recruitment startup Joonko, with defrauding investors of at least $21 million by making false and misleading statements about the quantity and quality of Joonko’s customers, the number of candidates on its platform, and the company’s revenue.

FMA files civil proceedings against Booster Investment Management Ltd and individual directors and senior managers
The FMA has filed civil proceedings against Booster Investment Management Limited (BIML), a wholly owned subsidiary of Booster Financial Services Limited. The proceedings allege breaches of the Financial Markets Conduct Act (FMCA) by BIML and the following directors and senior managers of BIML: Allan Yeo (director), Paul Foley (director), Brendon Doyle (former director), David Beattie (senior manager) and Nicholas Craven (senior manager).

Restrictions placed on Motmaen Limited
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.

BIS Innovation Hub and Monetary Authority of Singapore Develop Blueprint for a Climate Risk Platform for Financial Authorities
The Bank for International Settlements (BIS) and the Monetary Authority of Singapore (MAS) have developed a blueprint for a platform that integrates regulatory and climate data to help financial authorities identify, monitor and manage climate risks in the financial system.

SFC briefs virtual asset trading platform applicants on regulatory expectations after transition period ends
The Securities and Futures Commission (SFC) held a briefing session today to explain its regulatory expectations to the virtual asset trading platform (VATP) applicants that are now deemed to be licensed after 1 June. Over 60 participants, including representatives from the deemed-to-be-licensed VATP applicants and their consultants, attended the morning briefing. Dr Eric Yip, Executive Director, Intermediaries, and Ms Elizabeth Wong, Director of Licensing and Head of Fintech unit, gave a comprehensive overview on the competencies expected of these applicants, and walked them through the licence application process.

Insider dealing case against Segantii Capital Management and its chief investment officer transferred to District Court
The Eastern Magistrates’ Court today granted an application by the Department of Justice to transfer an insider dealing case brought by the Securities and Futures Commission (SFC) to the District Court for criminal prosecution. This came after the SFC commenced criminal proceedings against Segantii Capital Management Limited (Segantii), its director and chief investment officer Mr Simon Sadler, and former trader Mr Daniel La Rocca, on 2 May 2024 for the offence of insider dealing in the shares of a company listed on the Stock Exchange of Hong Kong Limited prior to a block trade in June 2017 (Notes 1 and 2).

Investing and Trading

Property’s Big Short Isn’t Going to Plan; Lender Arbor Realty Trust is the most heavily shorted real-estate stock in the U.S. So far, the trade hasn’t paid off
Carol Ryan – The Wall Street Journal
It looked like an ideal way to bet on the downfall of gung-ho property investors who poured billions of dollars into overpriced buildings during the pandemic. Instead, short sellers in real estate lender Arbor Realty Trust appear stuck in a particularly expensive trade, having underestimated Arbor’s determination to “extend and pretend” its problem loans. Property flippers, including some who raised cash from mom-and-pop investors on social media, spent heavily on multifamily apartments between 2020 and 2022. They planned to renovate older buildings, raise rents and quickly sell the properties for profit.

Forget Copper and Gold as Steel-Making Raw Material Outperforms; Manganese beats other more closely watched commodities; Producers may fast track mine development on high prices
Paul-Alain Hunt – Bloomberg
Manganese, an essential steel-making ingredient, has outstripped copper, gold and many other commodities this year after a cyclone halted exports from the world’s second-largest mine in March. Prices of 44% grade manganese ore have almost doubled since the start of the year, beating gains of 15% in copper, 12% in gold and almost 30% in tin.

Asia’s Family Office Frenzy Comes With Plenty of Imposters; A rapidly growing wealth management industry is spurring a rise in allegations of fake family offices from Singapore to Hong Kong, forcing many in the sector to go “full CSI” to weed out imposters.
David Ramli, Lulu Yilun Chen and Claire Ballentine – Bloomberg
As Edoardo Collevecchio was getting ready to speak at a conference in Singapore, he recognized the family office that employed a fellow panelist. But as they exchanged small talk, Collevecchio noticed something was off – the executive couldn’t answer basic questions about his firm and didn’t even recognize the name of an owner. It soon became clear the ‘executive’ had never worked for the family office directly, and had misrepresented his status. An awkward snip later, the panel went ahead – minus one speaker.

Hedge Funds Ride the Momentum-Trade Wave to Net Gains Everywhere
Denitsa Tsekova – Bloomberg
A diverse range of hedge fund strategies is paying off this year after money managers ramped up their exposures across momentum-fueled markets. Riding assets on the way up – or on the way down – is delivering payoffs nearly everywhere, from one-way bets on Japanese equities and artificial-intelligence darlings to cocoa, and more. At the same time elevated, yet steady, interest rates in the US are helping stock pickers separate winners and losers by focusing on old-fashioned fundamentals like earnings growth and how much cash is piling up on balance sheets.

Abu Dhabi’s First IPO of the Year Slumps in Rare Debut Drop; Share offering had earlier drawn $20 billion of orders; Abu Dhabi companies jumped 31% on average in debuts since 2021
Farah Elbahrawy – Bloomberg
Alef Education Holding Plc shares dropped on their Abu Dhabi debut, a rarity in the Middle East where initial public offerings have typically yielded near-guaranteed returns in early trading. The shares fell as much as 19% from the offer price of 1.35 dirhams apiece, before paring the decline to close 13% lower. That contrasted with the strong demand for the stock when the IPO was unveiled – investors put in orders worth $20 billion and the deal, which priced at the top of the range and raised 1.89 billion dirhams ($515 million), was 39 times oversubscribed.

French Bond Rout Upends Hierarchy in Europe’s Debt Markets; Some French bonds yield more than lower-rated Portuguese paper
Greg Ritchie and Alice Gledhill – Bloomberg

Environmental, Social and Corporate Governance

New York Legislators Pass Climate Superfund Bill; Bill would bring in $3 billion in annual revenue from fossil-fuel companies over the next 25 years, if signed into law
H. Claire Brown – The Wall Street Journal
New York legislators passed a bill last week that would charge fossil-fuel companies a total of $3 billion a year for 25 years to pay for costs associated with climate change. The Climate Change Superfund Act is now headed to Gov. Kathy Hochul’s desk for her signature. If enacted, New York will become the second U.S. state with a law requiring fossil-fuel companies to bear some of the financial burden of climate change.

Why does Switzerland’s rebuff of European climate ruling matter?
Emma Farge and Gloria Dickie – Reuters
Switzerland’s lower house parliament has voted to reject a landmark court ruling ordering the country to do more to combat global warming, in a move that could encourage others to resist the influence of international courts. What Happens Next? The Strasbourg-based court in April found in favour of more than 2,000 Swiss women – known as KlimaSeniorinnen – who said their country’s inaction in the face of rising temperatures puts them at risk of dying in heatwaves.

UBS Seeks Expansion in Corner of ESG Targeted by Credit Suisse; Banks are seeking foothold in fast-growing biodiversity market; It’s about finding profitable deals for clients, Berkey says
Natasha White – Bloomberg
UBS Group AG just held its first-ever conference dedicated to the ESG theme of biodiversity, signaling its ambitions to grow in a business area that Credit Suisse had targeted for expansion before its collapse. Judson Berkey, group head of engagement and regulatory strategy at UBS, said the goal is to figure out “what would help unblock finance” for deals focused on protecting natural capital.

Can U.S. energy industry keep up with AI’s thirst for electricity? Trade group has concerns; With AI use projected to push consumption higher, former Energy Secretary Dan Brouillette says the energy sector’s struggle to meet demand should be a ‘red flag’ for Americans
Maya Levine – MarketWatch
Peak U.S. electricity demand is expected to increase by 38 gigawatts by 2028, experts say. That’s about 3.8 billion LED bulbs worth of power. Dan Brouillette, who served as energy secretary in the Trump administration, worries that the industry may not be able to meet that demand.

Glaciers in Peru’s Central Andes Might Be Gone by 2050s, Study Says; New insights could help government manage water resources and preserve the mountains.
Alexa Robles-Gil – Inside Climate News
In a village in Checacupe, in the southern region of Cusco in the Peruvian Andes, there used to be a ceremony to prepare a glacier lagoon to gather water, said Richart Aybar Quispe Soto, a local hospital worker. It was a ritual that revered the apus, the spirits of the mountains and water, he said. “In my mother’s village,” he said, “the glacier stream, which we call mayucha in Quechua, no longer comes down from the mountain.” Now, new research shows that the glaciers and water in the central range, closer to the country’s capital, Lima, might face a similar fate.

The World Needs More Batteries – But Not This Many; Proposed plants would have the capacity to make more cells than global economy requires.
David R Baker – Bloomberg

Companies Kick the Plastic Can Down the Road (Again); Producers representing a third of plastic packaging in the U.S. signed a pact committing to recycling targets for 2025. Now some of the deadlines have been moved to 2030.
H. Claire Brown – The Wall Street Journal (Pro)

Startup Plans to Build Next-Generation US Solar Factory in Two Years; Swift Solar is betting on cells that use perovskite, a material that can improve efficiency – but also has yet to be proven at scale.
Tope Alake – Bloomberg

Fires in Brazil wetlands surge to record start in 2024
Leonardo Benassatto

‘It’s unbearable’: in ever-hotter US cities, air conditioning is no longer enough; Record-breaking temperatures in the last few years shatter the myth that air conditioning alone will keep people safe
Delaney Nolan – The Guardian

Extreme heat triggers novel payout for 50,000 women in India

Egypt’s Extreme Heat Is Ominous Warning for Global Economies This Summer; The desert country is a bellwether for climate change
Salma El Wardany and Olivia Rudgard – Bloomberg

South Florida Is Pummeled by Record Rainfall With More Downpours to Come; Storms may strengthen into the season’s first tropical system; The downpours are forecast to continue into the weekend
Brian K Sullivan – Bloomberg

Exclusive: Africa’s Great Green Wall to miss 2030 goal says UN desertification president
Simon Jessop and Alessandra Prentice – Reuters


Unhappy customer: Why I finally took my business from Vanguard to Charles Schwab
Allan Sloan – Yahoo Finance
It’s a slippery slope when a customer-oriented operation like Vanguard Group has been since it was founded almost 50 years ago begins to get greedy by imposing a whole bunch of changes and chintzy fees on its customers. What’s more, getting greedy can not only damage the firm’s reputation but can also cost it money. That’s what will happen in my case, because I’ve decided to vote with my feet – in the metaphorical sense, of course – and move my Vanguard Individual 401(k) account to Charles Schwab (SCHW).

UBS market strength puts Swiss industry on edge
John Revill – Reuters
UBS’s takeover of Credit Suisse has fed a creeping anxiety that Swiss companies will pay a price for the enlarged bank’s outsize market strength. The historic 2023 deal created a bank with a balance sheet twice the size of the Swiss economy, and at a stroke eliminated one of the two giants of the Swiss banking landscape. It also narrowed the financing options for the country’s high-cost, highly competitive export-orientated companies, especially with Credit Suisse seen as the bank which supported entrepreneurs in areas like export finance. UBS Chief Executive Sergio Ermotti says market competition is robust, and that his bank would only be the second-largest player after cantonal lenders in most product areas.

Deutsche Bank Targets Middle East Wealth With 10 New Hires
Nicolas Parasie – Bloomberg
Deutsche Bank AG’s wealth management arm is stepping up its recruitment efforts in the Middle East, a region that has become a magnet for the world’s ultra-rich. The German lender hired 10 bankers in recent months, many from Credit Suisse, to focus on wealthy clients and families in the Gulf, according to a top executive at the bank. Among the newcomers are Fayez El Hajj, a managing director who spent 17 years at Credit Suisse, as well as half a dozen directors.

SoftBank’s Bond Underwriting Fee Drops for First Time in Decade; Fee for seven-year retail bonds declines to Â¥1.10 from Â¥1.25
Takahiko Hyuga – Bloomberg
SoftBank Group Corp. was able to reduce underwriting fees for yen retail bonds for the first time in a decade, underscoring the market’s perspective that its credit quality is improving. Billionaire Masayoshi Son’s firm paid brokerages Â¥1.10 per Â¥100 to underwrite Â¥550 billion ($3.5 billion) of seven-year notes for individual investors, according to a company filing. That was a decrease from the Â¥1.25 rate that it paid on its retail bond sales since 2014, including its most recent deal in March, data compiled by Bloomberg show.

Wells Fargo Racial Disparity Case Heads to Class Action Decision; Lawyers say 119,100 people denied mortgages could seek relief; Bank disputes claims credit-scoring algorithm hurt minorities
Hannah Levitt, Shawn Donnan, and Ann Choi – Bloomberg
Wells Fargo & Co. faces a decision as soon as this month on whether a lawsuit over its pandemic-era mortgage denials to non-White applicants gets class-action status, a key turning point in a high-profile and potentially costly case. The bank, which was long the biggest US mortgage lender until a recent pullback under Chief Executive Officer Charlie Scharf, has asked a federal judge in California to deny the motion the plaintiffs filed earlier this year. The case consolidates a number of lawsuits brought before and after Bloomberg News reported in 2022 that Wells Fargo rejected a majority of Black homeowners who applied to refinance mortgages in 2020, the only big bank to deny more Black applicants than it accepted.

Invesco shutters UK equities team as customer outflows hit wider sector; US asset manager will merge team once led by Neil Woodford with its European division
Emma Dunkley – The Wall Street Journal
Invesco is shuttering its standalone UK equities team, formerly led by stockpicker Neil Woodford, and merging it with its European division amid an industry-wide drop in interest for British stocks. The US-headquartered asset manager said the move to merge the desks “to create one Pan European Equity Team” will take effect from January and is intended to encourage “collaboration” between the divisions based in Henley-on-Thames. Invesco added that the decision “was made in Henley by the investment management teams”.

Nvidia Eclipsing Apple Threatens Radical Shakeup of $67 Billion ETF
Lu Wang and Isabelle Lee – Bloomberg
One of the world’s biggest tech ETFs looks poised for a shake-up after Nvidia Corp. catapulted past Apple Inc. in size. Thanks to diversification rules, the $67 billion Technology Select Sector SPDR Fund (ticker XLK) has held way fewer Nvidia shares for months now while the AI giant continues to soar. Currently, the chipmaker makes up roughly 6% of the fund’s assets, compared with 21% for the S&P 500 Information Technology Index – spurring XLK to underperform big time this year.

BlackRock Scouts for Insurance Partnerships in Private-Debt Push; Such debt has been a hot topic in the insurance industry; ‘We will form collaborations with insurers,’ James Keenan says
Loukia Gyftopoulou and Kat Hidalgo – Bloomberg

Work & Management

Silent lay-offs are rarely as quiet as bosses hope; Attempts to control how staff communicate their own departures often cause more problems than they solve
Andrew Hill – Financial Times
The annals of mishandled restructurings are full of classic episodes, made worse by technology. Workers have suffered mass redundancy by Tannoy, voicemail, text and Zoom. Now, PwC’s UK arm has charted new territory with an attempt to orchestrate a round of “silent lay-offs” by email. The Big Four firm’s bid to mute the farewells of colleagues participating in a “targeted voluntary severance” has turned out to be far from silent. It may not even be that new. More successful attempts to stop outgoing workers broadcasting their redundancy are, by definition, hard to detect.

Wellness Exchange

South Africa Pushes for Mpox Vaccine After First Death Reported; Country looks to source vaccine from WHO member stockpiles; Minister calls on exposed people to visit health facilities
Janice Kew – Bloomberg
South Africa, which recently recorded its first mpox fatality, is scrambling to get vaccine supplies, Health Minister Joe Phaahla said. A cousin of the smallpox virus, mpox has for years been mostly confined to developing countries, though it spread across Europe and the US in 2022. Africa, the only continent where the infectious disease is endemic, has struggled to get vaccines.

Powerful lobbies hobble moves to cut European disease burden; Alcohol, food, tobacco and fossil fuel sectors oppose efforts to target conditions linked to 2.7mn deaths a year, warns WHO
Michael Peel, Madeleine Speed and Ian Johnston – Financial Times
Big industries are causing ill health and premature deaths across Europe by hobbling efforts to target non-communicable diseases such as cancers, diabetes and cardiovascular conditions, a World Health Organization report has warned. Four sectors alone – alcohol, processed food and drink, tobacco and fossil fuels – are linked to an estimated 2.7mn deaths annually in the region based on global disease research, the paper from the UN health body says.

Women have a lot on their Petri dish; A new WHO survey suggests that they are more exposed than men to superbugs
Anjana Ahuja – Financial Times
Antimicrobial resistance happens when pathogens – microorganisms that cause disease, like viruses, bacteria, fungi and parasites – stop responding to medicines. The World Bank estimates AMR could add $1tn to healthcare costs by 2050. Now, a survey by the World Health Organization suggests that women could be more exposed than men to such superbugs, thanks to a complex mix of biological, social, cultural and economic factors. It is unclear yet whether that leads to more disease among women but WHO is urging countries to pass on information on sex and gender in their monitoring of drug-resistant infections.


US Weighs More Limits on China’s Access to Chips Needed for AI; Restrictions would target novel ‘gate all-around’ technology; US officials are in early talks on high-bandwidth memory curbs
Mackenzie Hawkins and Ian King – Bloomberg
The Biden administration is considering further restrictions on China’s access to chip technology used for artificial intelligence, targeting new hardware that’s only now making its way into the market, people familiar with the matter said. The measures being discussed would limit China’s ability to use a cutting-edge chip architecture known as gate all-around, or GAA, according to the people, who spoke on condition of anonymity because the deliberations are private. GAA promises to make semiconductors more powerful and is currently being introduced by chipmakers.

Canada Readies New Arctic Foreign Policy as Russia Threat Looms; No longer in a ‘high North, low tension’ reality: minister; New policy to be influenced by Sweden, Finland joining NATO
Danielle Bochove – Bloomberg
Canada is preparing a long-awaited Arctic strategy to respond to the growing threat posed by Russia and to strengthen security ties with northern NATO members. The country has the second-largest Arctic region in the world after Russia but a much lighter presence there in terms of population, military and infrastructure. Canada is taking action as the geopolitics of the North have rapidly changed, the country’s foreign minister said Tuesday.

BIS Innovation Hub and Monetary Authority of Singapore develop blueprint for a climate risk platform for financial authorities
Project Viridis explores how regulatory and climate data could be integrated to provide insights into climate-related financial risks. The project’s report outlines a blueprint for a climate risk platform that can be used to identify, monitor and manage climate risks in the financial system. The platform uses technology architecture developed by the BIS Innovation Hub Singapore Centre and MAS, enhanced in collaboration with other financial authorities from around the world. The Bank for International Settlements (BIS) and the Monetary Authority of Singapore (MAS) have developed a blueprint for a platform that integrates regulatory and climate data to help financial authorities identify, monitor and manage climate risks in the financial system.

Singapore’s top bank DBS eyes $370 bln in wealth assets by 2026, top exec says
Yantoultra Ngui – Reuters
DBS Group (DBSM.SI), plans to boost assets under management for its wealth business to S$500 billion ($369.7 billion) by the end of 2026, said the unit’s head, as the top Singaporean bank bets on robust inflows into the city state. Wealth assets at DBS grew 23% to a record S$365 billion last year, as Singapore benefitted from strong inflows of wealth into Asia due to its relative political stability, low taxes, and policies favourable for setting up family offices and trusts.

Thai central bank holds key rate despite government calls for cut
Orathai Sriring and Kitiphong Thaichareon – Reuters
Thailand’s central bank left its key interest rate unchanged for a fourth straight meeting on Wednesday, as widely expected, despite public calls by the government to reduce borrowing costs to help revive Southeast Asia’s second-largest economy. The Bank of Thailand’s (BOT) monetary policy committee took a more hawkish position, voting 6-1 to hold the one-day repurchase rate (THCBIR=ECI). One member voted for a 25 basis point rate cut.

Gold rush grips Asia despite near-record prices
Ashitha Shivaprasad and Brijesh Patel – Reuters
Demand for gold in Asia is surging despite prices hovering near the record highs it hit in May, industry officials say, as buyers snap up the metal to hedge against geopolitical and economic uncertainty. Spot gold is trading a little over $2,300 per ounce, up about 12% year-to-date and only about 6% shy of the record high it hit last month.

Asia Traders ‘Setting Alarms’ For Double-Whammy Fed Day
Ruth Carson, Takahiko Hyuga, and John Cheng – Bloomberg
Motonari Sakai is planning to burn the midnight oil on one of the biggest days in the economic calendar this month. “I have no dinner appointments, I will refrain from drinking at home to watch the US CPI release in peace,” said the Tokyo-based chief manager of foreign-exchange and financial products trading division at Mitsubishi UFJ Trust & Banking Corp. “Then I will probably stay up at night for the Fed decision at 3 a.m.” Sakai is not alone.

Morgan Stanley Banker Says Australia Is Safe Haven to China Woes; Richard Wagner speaks in Bloomberg TV interview in Sydney
Harry Brumpton and Haidi Lun – Bloomberg
Morgan Stanley’s Australia chief Richard Wagner said the country is benefiting from an increase in capital flows that cements its ability to cushion investment risk during a period of global turbulence. “It’s very, very hard to lose money in Australia and therefore that safe haven has been an attraction of capital, particularly in the last 12 months as we’ve seen such extended volatility in China,” Wagner said in a Bloomberg TV interview Wednesday. “Most of the global money that’s been pointed at Asia Pacific has been reweighted away from China. And the beneficiaries of that have been Australia, Japan, and India.”

At Art Basel, The World’s Richest Are Taking Their Time To Buy; Sales are happening, just not at the pace that dealers would prefer.
James Tarmy – Bloomberg
People don’t trek to Art Basel in Switzerland just for fun. Famed for being the highest-quality art fair in the world, the O.G. Swiss fair is a place where people tend to stay exactly as long as they need to and no longer. “It’s not a fair like New York or Miami where there’s more going on in the city,” says Malik Al-Mahrouky, a partner at Kurimanzutto gallery, standing in his booth during the opening VIP day. “Here, people come with a very specific mindset to acquire art.” (VIP days are June 11 and 12; the fair is open to the public from June 13 to 16.)

Nigeria Running Out of Tomatoes Poses Fresh Risks to Inflation; Prices of the vegetable have surged due to the shortages; ‘Tomato Ebola,’ dry weather and high fuel costs to blame
Ruth Olurounbi – Bloomberg
Soaring tomato prices in Nigeria are creating a new headache for authorities, who are battling food inflation that’s at its highest in decades and has fanned protests and looting. The price of the crop – an essential ingredient in many beloved dishes in Africa’s most populous nation – has surged due to shortages, according to market traders.

Argentina Loses $1.5 Billion UK Appeal Over GDP Linked Bonds; Hedge funds invested in GDP-linked bonds after 2001 crisis; UK Court of Appeal dismisses Argentina’s appeal in the case
Upmanyu Trivedi – Bloomberg
Argentina lost its attempt to overturn a UK court order to pay $1.5 billion to compensate investors for losses in the country’s growth-linked securities. The Court of Appeal refused the appeal over the payments to hedge funds including Palladian Partners LP. The investors alleged the loses were a result of a change in the method of calculating the country’s gross domestic product.

Canadian Miner Gold Reserve Submits Bid for Citgo Parent
Fabiola Zerpa – Bloomberg
Canadian miner Gold Reserve Inc. said it submitted a credit bid for the shares of PDV Holdings Inc., the parent company of Citgo Petroleum Corp., according to a statement distributed by Business Wire. Final bids were due on Tuesday as part of a process to sell PDV Holding, which controls Citgo, Venezuela’s most important foreign asset, in an auction to pay off creditors. The sale hearing is scheduled for July 15.


Bloomberg seeks a financial regulation reporter
Chris Roush –
Bloomberg News is looking for an experienced reporter to drive our coverage of US financial rule enforcement and Securities and Exchange Commission investigations. This is a high-profile beat with the chance to break major news about white-collar crime. This reporter will be the primary point person in our global newsroom for probes involving the SEC and Commodity Futures Trading Commission. The job requires discretion, excellent judgment and an interest in writing about some of the biggest names in finance. The person will work closely with other colleagues on the financial regulation team, as well as those covering finance and the Justice Department.

The College Scholarship Secret Hiding in Plain Sight: Your Last Name; Some schools dole out funds for students who can trace their lineage to specific individuals-or just happen to have the same name; good news for Zolps and Scarpinatos
Melissa Korn – The Wall Street Journal
Derek Gatlin discovered the value of his last name during middle-school detention. A teacher urged him to get serious about school so he could land a special college scholarship. He wouldn’t need a 4.0 grade-point average, athletic accolades or a musical skill. He just needed to be a Gatlin. (Or, he later learned, a Gatling.)Gatlin didn’t know what the teacher was talking about, but he liked the idea of being the first in his family to go to college.

We visit more than 100 financial news websites daily (Would YOU do that?)

The Spread

Traders Betting on China Easing Boost Bearish Options on Banks

Observations & Insight Miami International Holdings, Inc. (MIH) announced that the SEC has approved MIAX Sapphire LLC's application to become a national securities exchange. MIAX Sapphire, MIH's fourth national securities exchange for U.S. multi-listed options,...

Past JLN Newsletters

Pin It on Pinterest

Share This Story