European Energy Prices Surge to Records as Supply Crisis Spreads

Sep 28, 2021

First Read

$53,706/$300,000 (17.9%)
Nils-Robert Persson, Trading Technologies

Correction: In the story “IDX 2021 Panel: The New Landscape For Clearing in the U.K. and EU” in yesterday’s Newsletter, the sentence ‘The moderator, FIA Europe’s Bruce Savage, said the current state of Euro clearing was “unacceptable.”‘ was incorrect. It should have read, ‘The moderator, FIA Europe’s Bruce Savage, said the European Commission has said the status quo was “unacceptable.”‘ We apologize for the error and have corrected it on the JLN web site.~SR

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IDX 2021 Panel: EU and U.S. Regulated Exchanges Tackle Crypto, ESG Challenges
Suzanne Cosgrove – John Lothian News

The FIA’s IDX panel of executives from U.S. and EU derivatives exchanges on Tuesday quickly turned to a discussion of meeting the challenges of several of the new products currently demanded by investors and traders.

In response to questions from moderator and FIA CEO and President Walt Lukken, who asked the panelists to address how their exchanges were approaching cryptocurrencies, Zubin Ramdarshan, head of equity and index product design for Eurex, noted that “by and large, most bitcoin are traded on unregulated exchanges … (and) connectivity to a regulated environment is a healthy development.”

Stéphane Boujnah, CEO and chairman of the managing board, Euronext N.V., said offering crypto products was an “operation risk decision.” Euronext is striving to offer its customers “indirect exposure” to these assets, he said.

To read the rest of this story, go here.

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Hits & Takes
John Lothian & JLN Staff

The FT website is having issues today. When I clicked on stories on the site, or on links in a Google search, I received a “Sorry” error message. Thus, we have few FT stories today. Apologies.

The latest edition of The TRADE Magazine is now available to read online.

Euronext has a series of videos that explain the exchange and the role it plays. The series is titled “Bid & Ask.” The first one is titled “What is an Exchange?” It features Roland Prevot, head of retail, cash equity at Euronext. The video is in French, but has English subtitles. It is a good chance to learn about trading on Euronext and practice your French.

There is a trend for markets-related firms to sponsor eSports teams, or even own them in the case of Peak6. Deutsche Börse has joined the group with a sponsorship of the Eintracht eSports team. Deutsche Börse is not giving up on traditional sports, though. They have been a financial center partner of the Bundesliga soccer club Eintracht Frankfurt since 2017.

The Most Interesting Man in the World, Pat Kenny of CQG, is in London for IDX and was shown in the opening video for the conference. Thus, no mention of him was necessary, the MIMITW reported.

I am feeling a little targeted here. CNBC reported that “Panic sellers during stock market dips are often married men with children.” This is according to research from the Massachusetts Institute of Technology. What does MIT know? And I don’t call it panic selling. I call it getting out before the world collapses. — CNBC

The Americans and the Japanese love baseball, but the Japanese also have another sport that is unique to them. Sumo. Victor Mather of the New York Times reports, “The most accomplished sumo wrestler in history is calling it a career at age 36. Hakuho, a native of Mongolia who came to Japan to pursue sumo at age 15, retires with more top-level championships, or yusho, than anyone in the sport’s history.” Take that, Tom Brady! — NY Times

Nils-Robert Persson of Vermiculus Financial Technology donated to the JLN MarketsWiki Education GoFundMe campaign and is eligible for the raffle for five minutes of video production from John Lothian News. He previously donated to the campaign. Thank you to Nils-Robert and all who have given and all who have yet to give.

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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In the latest installment in the saga of El Salvador’s September 7 adoption of bitcoin as legal tender, Business Insider reported Monday that the country’s president, Nayib Bukele, tweeted that about a third of El Salvador’s population, or 2.1 million Salvadorans, actively use its bitcoin wallet Chivo. His statement should be met with some skepticism. As the Insider also noted, Chivo’s rollout has been far from smooth. For a more comprehensive look, see an analysis in the publication Foreign Policy, “El Salvador’s Bitcoin Law Is a Farce.” Here are a couple of the points in that article: The network that operates the official El Salvador bitcoin wallet, Chivo SA de CV, is a private company, so it is not subject to the freedom of information laws that a government department would be; and the president’s chief of staff, Carolina Recinos, also a director of Chivo SA de CV, is on the U.S. State Department’s Engel List of corrupt officials.~SC

Women in Listed Derivatives (WILD) is having its “Conjunction Function” event tomorrow, September 29, at 11:30 – 12:30 p.m. CST on Zoom. It is free for WILD members. The event is “about bringing the WILD community back together. Stay connected during tough times, regroup with industry peers and friends online for continued dialogue & relationship building. We’ll use random break-out rooms to facilitate small group discussions around moderator-led discussion prompts. Join us & reconnect with the WILD community.”
You can go here to register.~SR

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SEC Charges Two Individuals for Wash Trading Scheme Involving Options of “Meme Stocks”
SEC
The Securities and Exchange Commission today charged a Florida resident and his friend for engaging in a fraudulent scheme designed to collect liquidity rebates from exchanges by wash trading put options of certain “meme stocks” in early 2021. According to the SEC’s complaint, filed in the United States District Court for the District of New Jersey, starting in late February 2021, Suyun Gu became aware of the increased market volume and volatility driven by so-called “meme stocks” – stocks that were being actively promoted on social media platforms. Gu allegedly then devised a scheme to take advantage of the “maker-taker” program offered by exchanges by trading options of these stocks with himself.
/bit.ly/2Y3YMvM

******Now we know why option volumes are so high. ~JJL

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How the Far Right Embraces Crypto to Move Millions and Fund Hate
Erika Kinetz, Lori Hinnant – Associated Press
The Daily Stormer website advocates for the purity of the white race, posts hate-filled, conspiratorial screeds against Blacks, Jews and women and has helped inspire at least three racially motivated murders. It has also made its founder, Andrew Anglin, a millionaire. Anglin has tapped a worldwide network of supporters to take in at least 112 Bitcoin since January 2017 — worth $4.8 million at today’s exchange rate — according to data shared with The Associated Press. He’s likely raised even more.
/bloom.bg/3kPFX8h

***** Think really hard about how we are making it easier for evil people to succeed with unregulated crypto assets.~JJL

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Facebook invests $50 million to build the ‘metaverse’ in responsible manner
Sheila Dang – Reuters
Facebook Inc will invest $50 million to partner with organizations to responsibly build the so-called metaverse – a digital world where people can use different devices to move and communicate in a virtual environment, it said on Monday.
/reut.rs/3CU9SCc

****** Metaverse is the word of the year so far. But in another metaverse, it is not so much.~JJL

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James Bond and Rolls Royce fight to keep London stocks in the black
Barbara Kollmeyer – MarketWatch
Despite support from James Bond and Rolls-Royce, London’s main stock markets were struggling for footing on Monday. The London FTSE 100 index (UK:UKX) rose 0.1% to 7,060.16, while the FTSE 250 index (UK:MCX) was unchanged at 23,616. Big energy names were in the lead, with shares of BP (BP) (UK:BP) and Royal Dutch Shell (UK:RDSA) (UK:RDSA) up 2% and near 3%, respectively, as U.S. (CL00) and Brent crude prices (BRN00) logged gains of more than 1.5% each.
/on.mktw.net/2Wk0aJS

*****The markets were only stirred, not shaken.~JJL

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Autism Science Foundation Wins 2021 Top-Rated Award from GreatNonprofits
ASF
ASF earns distinction for the ninth consecutive year, which comes as the organization further expands funding opportunities that provide critical support to autism researchers and families
/bit.ly/2XW5xjn

*****Wall Street Rides Far charity showing its chops.~JJL

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MarketAxess Extends Its Global Fixed Income Trading Network To China’s Bond Market; Connection to the China Foreign Exchange Trade System (CFETS) will provide over 1,800 global investors with enhanced access to China’s onshore bond market
MarketAxess Holdings Inc.
MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, and the provider of market data and post-trade services for the global fixed-income markets, today announced the launch of a new trading channel for its global investors to access the China Interbank Bond Market (CIBM). Access is via the connection between CFETS and MKTX under the Bond Connect and CIBM Direct schemes, in partnership with China Foreign Exchange Trade System (CFETS) and Bond Connect Company Limited (BCCL).
/yhoo.it/3zPwe5Q

***** Good timing by MarketAxess.~JJL

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Monday’s Top Three
Our top story Monday was the Wall Street Journal’s Individuals Embrace Options Trading, Turbocharging Stock Markets. Second was JLN’s IDX 2021 Panel: The New Landscape For Clearing In the U.K. and EU. Third was Bitcoin mining company buys Pennsylvania power plant to meet electricity needs, from Techspot.

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MarketsWiki Stats
26,622 pages; 235,916 edits
MarketsWiki Statistics

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Lead Stories

European Energy Prices Surge to Records as Supply Crisis Spreads
Lars Paulsson, Verity Ratcliffe and Jesper Starn – Bloomberg
European energy markets from natural gas to carbon permits jumped to records, signaling the supply shortage will get worse just as the winter season starts. Stockpiles of everything from gas to coal and Norwegian water for electricity production are dwindling and there are few signs the situation will improve anytime soon as demand continues to roar back from a pandemic-driven lull.
/yhoo.it/3AOIuFf

‘Crazy’: Britain puts army on standby as panic buying leaves petrol pumps dry
Michael Holden, Ben Makori and James Davey – Reuters
British drivers expressed frustration on Tuesday as they hunted for hours or sat snarled in queues to fill their tanks after gas stations in major cities ran dry due to a trucker shortage that has prompted the government to put the army on standby. Queues of drivers snaked back from those petrol stations that were still serving in major cities, though dozens of forecourts were closed with signs saying they had no petrol or diesel, Reuters reporters said.
/yhoo.it/39JhgE1

Fed Leaders Eric Rosengren, Robert Kaplan to Resign Following Trading Controversy; Dallas Fed President Kaplan said his stock trading distracted from the work of the central bank
Michael S. Derby – WSJ
The Federal Reserve banks of Boston and Dallas said their presidents were resigning, following reports of the two leaders’ investment trading that prompted calls for their departures and a central-bank review of its ethics rules. The two banks gave different reasons for the exits. Dallas Fed President Robert Kaplan, a 64-year-old who is resigning effective Oct. 8., acknowledged in a statement released by the bank that his stock trading distracted from the Federal Reserve’s work.
/on.wsj.com/3CR9xjM

Turquoise expands offering and provides investors better access to trade US shares with direct settlement into DTC
London Stock Exchange Group
US stocks that trade on Turquoise now benefit from fungible settlement into DTC; US shares, US ETFs, and Chinese ADRs are available for Straight Through Processing (STP); Investors in Asia can trade US shares during live UK market hours, starting 8am UK time
Turquoise, LSEG’s (London Stock Exchange Group) global securities trading platform, has today announced an expansion of its service with a newly enlarged US segment, with US shares now settling into DTC. This expansion will allow global investors to trade in a greater number of US stocks through one connection, alongside UK, Swiss and European securities.
/lseg.group/3kObF5H

The Global Natural Gas Crunch May Switch Off Lights in Pakistan
Verity Ratcliffe – Bloomberg
Pakistan only started importing liquefied natural gas six years ago, but its growing dependence on the super-chilled fuel is starting to turn into a nightmare.
/yhoo.it/3ugI1t0

Crypto Exchange Says $24 Million ‘Fat-Finger’ Trade Being Undone
Joanna Ossinger and Justina Lee – Bloomberg
A mistaken $24 million in crypto transaction fees is being returned, according to an exchange involved in the issue. Decentralized exchange DeversiFi, which had earlier called the price tag “erroneously high,” expressed gratitude that the recipient was willing to cooperate. While fat-finger errors can spark sharp swings in traditional markets, they are uniquely problematic in the crypto world, since blockchain transactions are supposedly irreversible.
/yhoo.it/3AQqTfV

*****That is so 1999!~JJL

Central bank digital currencies can slash cross border payment time – BIS
Alun John – Reuters
Central bank digital currencies (CBDCs) can slash the time needed for cross border payments to seconds from days and cut costs, the Bank of International Settlements (BIS) said, citing a pilot scheme to test the digital forms of fiat currencies.
/yhoo.it/3kMhd0w

Exclusive-U.S. SEC cracks down a second time on SPAC equity accounting treatment – sources
Anirban Sen, Chris Prentice and Krystal Hu – Reuters
Expanding its crackdown on the SPAC sector, the U.S. Securities and Exchange Commission has told top auditors of blank-check acquisition companies to account more strictly for public shares in these shells, according to multiple industry accountants and lawyers familiar with the change.
/yhoo.it/3zNJMig

Robinhood CEO Unwittingly Inspired $1 Million Meme Stock Fraud
Nick Baker and Matt Robinson – Bloomberg
It was easy-money arbitrage fueled by this year’s meme stock mania. Some brokerages were essentially offering free cash, while others weren’t clawing any of the funds back for the second leg of the wager.
/yhoo.it/3zMGLi8

Unregulated Crypto Markets Will ‘Not End Well,’ SEC Chair Says
Ed Ludlow – Bloomberg
U.S. cryptocurrency markets and related platforms will “not end well” if they stay outside the purview of regulators, according to Securities and Exchange Commission Chairman Gary Gensler. “There’s trading venues and lending venues where they coalesce around these, and they have not just dozens but hundreds and sometimes thousands of tokens on them,” Gensler said Monday at the Code Conference in Beverly Hills, California. “This is not going to end well if it stays outside the regulatory space.”
/yhoo.it/2Ya31Wx

Security Traders Association Announces Winners of 2021 STA Foundation Awards
Security Traders Association
Security Traders Association (STA) is pleased to today announce the recipients of the 2021 STA Foundation Awards. The annual STA Foundation Awards recognize individuals within the financial services industry who have made outstanding efforts in any of several areas, including stewardship and service, advocacy, philanthropy and ethics.
/bit.ly/3ohzGo1

SEC chair Gensler worried ‘people will be hurt’ without crypto and SPAC regulations
Rey Mashayekhi – Fortune
Securities and Exchange Commission Chairman Gary Gensler shed light on an array of hot-button topics Monday—expressing his belief that “people will be hurt” if cryptocurrency markets are allowed operate beyond the remit of regulators, and voicing concerns that special purpose acquisition companies (SPACs) leave public market investors vulnerable.
/yhoo.it/39JF4I4

What do Gary Gensler’s MIT lectures reveal about future crypto regulation?
Sam Cooling – Coin Rivet
Gary Gensler, the current chairman of the Securities Exchange Commission (SEC), has had a turbulent relationship with crypto assets so far this year. But with cryptocurrency firmly off the SEC’s 2021 regulatory agenda, many are wondering what policies Gensler might be cooking up as the industry braces itself for next year.
/yhoo.it/2XXePef

Sam Bankman-Fried says FTX has moved its HQ from Hong Kong to the Bahamas because of its crypto framework
Shalini Nagarajan – Business Insider
Crypto exchange FTX has relocated its headquarters from Hong Kong to the Bahamas after planning the move for some time, its boss Sam Bankman-Fried said, rejecting the idea China’s crypto ban played a part. FTX had been considering the Bahamas for a while, as it is one of the first countries to roll out comprehensive regulation for cryptocurrencies, the company’s founder and CEO told Bloomberg in a Friday interview.
/yhoo.it/3zLKgpm

Plague of Locusts Next? BOE Boss Jokes in Warning on U.K.’s Woes
Andrew Atkinson – Bloomberg
Bailey says economy faces ‘hard yards’ amid supply shock; Governor comments in speech to professional economists Monday
Bank of England Governor Andrew Bailey jokingly warned of the mounting problems facing the U.K. economy by referencing the Biblical plagues of Egypt.
/bloom.bg/3ugID

ExamFX acquires Training Consultants, creating a comprehensive solution for insurance and securities licensing training; Expanded product portfolio strengthens ExamFX’s ability to meet professionals’ training needs by accelerating learning, advancing job readiness, and enabling employment success
ExamFX
ExamFX, an Ascend Learning, LLC brand and a leader in licensing training for the insurance and financial services industries, recently acquired Training Consultants, a recognized provider of securities licensing training with over 40 years of experience. The acquisition creates a comprehensive solution for insurance and securities licensing training in the financial services industry, strengthening ExamFX’s leadership position with proven outcomes and candidate success.
/bit.ly/3CXrmOj

Leaders in Trading 2021: Nominations open for this year’s Rising Stars of Trading and Execution; The TRADE’s Rising Stars of Trading and Execution Awards returns for its seventh year, celebrating the most promising up-and-coming talents in trading. Nominations are now open with the ceremony forming part of The TRADE’s flagship awards night on 4 November.
Annabel Smith – The Trade
The TRADE is delighted to announce that nominations are now open for this year’s Rising Stars of Trading and Execution Awards, our long-running initiative to recognise the budding buy-side talents of the institutional trading space.
/bit.ly/39GNyiY

FCA to take ‘tough, assertive approach’ to Brexit permissions lapsing; As deadlines near the FCA will make sure no one can trade without full authorisation
Justin Cash – Financial News
The UK regulator has said it will take a “tough, assertive approach” to firms operating in the region with temporary permissions in the wake of Brexit when their deals expire. In the runup to Brexit, the Financial Conduct Authority set up a temporary permissions regime allowing firms to continue to trade in the country during the transition period, ahead of when the UK would eventually leave the bloc.
/bit.ly/2XXk6C

Coronavirus

FOCUS-COVID-19 pill developers aim to top Merck, Pfizer efforts
Deena Beasley – Reuters
As Merck & Co and Pfizer Inc prepare to report clinical trial results for experimental COVID-19 antiviral pills, rivals are lining up with what they hope will prove to be more potent and convenient oral treatments of their own.
/yhoo.it/3uhbD9s

Romania coronavirus cases hit new record daily high
Reuters
The number of new coronavirus infections in Romania rose by a record high 11,049 in the past 24 hours, the government said on Tuesday, as the country has the second-lowest vaccination rate in the European Union.
/yhoo.it/2XWNjhe

The Covid Resilience Ranking; The Best and Worst Places to Be as We Learn to Live With Delta
Bloomberg
Delta has redefined how we live with the virus, with places that stayed resilient amid the variant’s onslaught providing a new model for how the world emerges from the pandemic. In September, European nations dominate the top rungs of Bloomberg’s Covid Resilience Ranking for a third month, and we have a new No. 1—Ireland has taken pole position from Norway after steadily climbing the ranks from the start of 2021, when it had the worst outbreak in the world.
/bloom.bg/2V9JNeR

Harvard MBA Students Move Online as Breakthrough Cases Climb
Janet Lorin – Bloomberg
Business school sees ‘steady rise’ in breakthrough infections; Asks students to curtail in-person interactions, group travel
Harvard Business School moved all first-year and some second-year MBA students to remote learning this week amid a “steady rise” in breakthrough Covid-19 infections, despite high vaccination rates and frequent testing.
/bloom.bg/2Wn8Qzc

How Covid Misinformation Created a Run on Animal Medicine; Veterinarians, ranchers and farmers say they are struggling with the effects of the surging demand for ivermectin, a deworming drug.
Erin Woo – NY Times
Emerson Animal Hospital was down to its last 10 milliliters of ivermectin. For months, the veterinary center in West Point, Miss., had watched its supplies of the drug dwindle. Dr. Karen Emerson, the veterinarian who owns the hospital, started the year with one 500-milliliter bottle of ivermectin, which she uses to kill parasites in dogs, chickens and other patients. But as the bottle emptied and her staff tried to find more, they were able to obtain only a 50-milliliter vial. Everyone else told them: None available.
/nyti.ms/3uktRXV

Exchanges, OTC and Clearing

MarketAxess Extends Its Global Fixed Income Trading Network To China’s Bond Market; Connection to the China Foreign Exchange Trade System (CFETS) will provide over 1,800 global investors with enhanced access to China’s onshore bond market
MarketAxess Holdings Inc.
MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, and the provider of market data and post-trade services for the global fixed-income markets, today announced the launch of a new trading channel for its global investors to access the China Interbank Bond Market (CIBM). Access is via the connection between CFETS and MKTX under the Bond Connect and CIBM Direct schemes, in partnership with China Foreign Exchange Trade System (CFETS) and Bond Connect Company Limited (BCCL).
/yhoo.it/3zPwe5Q

Deutsche Börse sees head of digital assets depart; Exchange group which has been at the forefront of digital asset investments and initiatives loses head of the unit.
Jonathan Watkins – The Trade
Deutsche Börse’s head of digital assets, Simon Seiter, has left the exchange group after two years to take on a role at private bank Hauck & Aufhäuser. At Deutsche Börse – which owns and operates Xetra, Eurex and Clearstream – Seiter focused on using distributed ledger technology (DLT) to build new infrastructures for digital assets.
/bit.ly/39Jsx7j

DeFi Technologies Inc. Featured in Syndicated Broadcast Covering Subsidiary’s Listings of Exchange Traded Products on the Frankfurt Stock Exchange
Defi Technologies, Inc
DeFi Technologies Inc. (NEO: DEFI) (GR: RMJ.F) (OTC: DEFTF), a digital asset investment firm bridging the gap between traditional capital markets and decentralized finance, today announces that it has been featured in a broadcast via NetworkNewsAudio (“NNA”), a solution that delivers additional visibility, recognition and brand awareness in the investment community via distribution to thousands of syndication points. The audio press release covers DeFi Technologies subsidiary Valour Inc.’s recent announcement of imminent listings of its Exchange Traded Products (“ETPs”) on the Frankfurt Stock Exchange, which is the world’s 12th largest stock exchange by market capitalization and the largest of the seven regional securities exchanges in Germany.
/yhoo.it/39LUDi8

HKEX launches new market access platform for securities trading; “The launch of OCG-C underscores HKEX’s commitment to leveraging the latest technologies to build reliable, resilient and efficient platforms and processes.”
Finance Feeds
Hong Kong Exchanges and Clearing Limited (HKEX) has launched Orion Central Gateway – Securities Market (OCG-C), offering improved performance and reduced latency, compared with the vendor-supplied platform that it replaces.
/bit.ly/39K1Yz2

— Application for Hard Red Winter Wheat Regularity — CME
— Summary Action – MEMBER: CITIGROUP GLOBAL MARKETS INC., RULE VIOLATION: Rule 576. IDENTIFICATION OF GLOBEX TERMINAL OPERATORS — CME
— CME Optimizer Software Version 17 Release, Mandatory Upgrade Required by November 15, 2021 — CME
— Summary Actions – MEMBER: CITIGROUP GLOBAL MARKETS INC., RULE VIOLATION: Rule 576. IDENTIFICATION OF GLOBEX TERMINAL OPERATORS — CME

Fintech

One Financial Markets launches new One Connect copy-trading app
One Financial Markets
Award-winning online FX and CFD broker One Financial Markets has announced the release of a new copy-trading app, named One Connect. Created in partnership with Pelican Exchange, a specialist social copy-trading technology provider based in the UK, the mobile app allows users to connect with a network of traders around the world, follow top traders and copy their online trades.
/bit.ly/3CNcRMK

‘Developers Are the New Bankers’: Wells Fargo Analysts Predict Wave of Job Cuts
Jennifer Surane – Bloomberg
Banks may eliminate 100,000 jobs over 5 years, analysts say; Compensation costs may not decline as quickly as headcount
The era of bankers dominating banking is over as software developers rise — and a record wave of job cuts will soon sweep the industry. That’s according to Wells Fargo & Co. analysts led by Mike Mayo, who estimated that the technology improvements and automation these developers bring will allow the industry to cut 100,000 jobs over the next five years.
/bloom.bg/3zIptD7

Eventus announces more key hires in EMEA
Eventus press release via Killeen Daily Herald
Ollie Cadman joins as Chief Product Officer; David Griffiths and Martin Appiah as Director of Regulatory Affairs
Eventus Systems, Inc., a leading global provider of multi-asset class trade surveillance and market risk solutions, today announced several key hires in Europe as part of the firm’s continued growth in the region and globally. Bringing extensive experience into the new roles are Ollie Cadman as Chief Product Officer, and David Griffiths and Martin Appiah, both as Director of Regulatory Affairs. Based in Stockholm, Cadman reports to Eventus CEO Travis Schwab, while Griffiths and Appiah – both based in the UK – report to Joseph Schifano, the firm’s Global Head of Regulatory Affairs.
/bit.ly/3kN0KJp

Eventus Systems fills new senior positions in EMEA; New heads bring a wide range of experience to the roles, having previous served at Vela Trading Systems, SteelEye and Royal Bank of Canada.
Wesley Bray – The Trade
Eventus Systems has appointed a new chief product officer and two directors of regulatory affairs, as the firm looks to continue its growth in Europe and globally. Ollie Cadman joins as chief product officer and will be based in Stockholm, responsible for building out the firm’s global product team and expanding its product offering. Cadman will report to Travis Schwab, chief executive officer of Eventus.
/bit.ly/3ofGjHm

Neptune selects former Morgan Stanley MD for next chief executive; New chief executive at Neptune Networks joined the firm in November last year as a member of its senior management team.
Annabel Smith – The Trade
Fixed income data platform, Neptune Networks, has selected a member of its senior management team to become its next chief executive after less than a year in his role. According to an update on social media, John Robinson has been appointed chief executive officer at Neptune after joining the firm’s senior management team in November last year, having most recently worked at Morgan Stanley for nearly 35 years.
/bit.ly/3F0TiTe

Citi launches tech hub in Bahrain to develop its digital platforms
Yousef Saba – Reuters
Citi (C.N) launched on Monday a global technology hub at its Bahrain offices, the first of its kind in the region and with the aim of employing 1,000 coders over the next decade.
/reut.rs/3zMdRij

Cybersecurity

$9 Billion Cybersecurity Firm Tanium Faces Exodus Over IPO Uncertainty
Rosalie Chan – Business Insider
In April, employees at Tanium logged onto Zoom for a virtual town-hall meeting in which CEO Orion Hindawi had big news to share: The company had just hired a new chief financial officer — one tasked with officially exploring the possibility of an IPO. The news was met with cheers — one person who was present recalled that the Zoom call’s chat was filled with exclamations like “yay!” or “yippee!” Some eagerly texted their former colleagues, as word spread quickly: After 14 years, Tanium was finally going public.
/bit.ly/3AO2Qyd

Cybersecurity Insurer Coalition Gets New Funding at $3.5 Billion Valuation
Chris Cumming – WSJ
Cybersecurity and insurance provider Coalition Inc. has received a $205 million investment at a valuation of more than $3.5 billion, and plans to use the infusion to grow faster and expand into new insurance lines, among other initiatives, it said Tuesday.
/on.wsj.com/3zNILqw

States Struggle to Recruit and Retain Cyber-Security Pros
Kathleen Foody – Insurance Journal
Austin Moody wanted to apply his cyber-security skills in his home state of Michigan, teaming up with investigators for the State Police to analyze evidence and track down criminals.
But the recent graduate set the idea aside after learning an unpaid internship was his only way into the Michigan agency.
/bit.ly/3zM0C1e

Cryptocurrencies

Bitfinex just spent $23.7 million in fees to make a single Ethereum transaction
Tim Copeland – The Block
A wallet belonging to crypto exchange Bitfinex covered the fees for a payment of $100,000 of tether (USDT) on behalf of the non-custodial exchange DeversiFi; Only the wallet appears to have paid a rather enormous fee. A wallet belonging to crypto exchange Bitfinex just paid $23.7 million in transaction fees to send $100,000 of tether (USDT) in what was a bit of a slip up. DeversiFi — a non-custodial exchange that spun out of Bitfinex in 2019 — said the transaction originated via its platform, which offers access to DeFi protocols “without paying gas fees.” These transaction fees, it turns out, are paid out through one of Bitfinex’s main wallets, which ended up footing the bill.
/bit.ly/39IBzl2

JPMorgan warns of shift to Ethereum futures
Elliot Shirnia – Coin Rivet
The continued divergence away from Bitcoin futures towards Ethereum futures is something to be concerned about, say analysts from JPMorgan. The ongoing trend led to the multinational bank issuing a note over the weekend to its customers advising them of the potential large scale pivot that could ensue.
/yhoo.it/3CQZ6N9

One Financial Markets launches new One Connect copy-trading app
One Financial Markets
Award-winning online FX and CFD broker One Financial Markets has announced the release of a new copy-trading app, named One Connect. Created in partnership with Pelican Exchange, a specialist social copy-trading technology provider based in the UK, the mobile app allows users to connect with a network of traders around the world, follow top traders and copy their online trades.
/bit.ly/3CNcRMK

Jamie Dimon says ‘you’re a fool’ if you borrow to buy bitcoin, and that he wouldn’t care if its price increased 10 times
Isabelle Lee – Business Insider
Jamie Dimon, chairman and CEO of JPMorgan Chase, once again reiterated his opposing stance on cryptocurrencies in a recent September interview. “I think if you borrow money to buy bitcoin, you’re a fool,” the JPMorgan boss told Times of India. “I don’t really care about bitcoin … I am not a buyer of bitcoin.”
/yhoo.it/3zHD9y8

Male-Dominated Crypto World Needs More Women, Exchange Head Says
Andreea Papuc – Bloomberg
The male-dominated cryptocurrency industry could provide more employment opportunities for women, according to the head of Australia’s largest digital-asset exchange. Blockchain needs greater female participation and offers opportunities as the industry becomes more mature and acceptance of decentralized finance grows, said Caroline Bowler, chief executive officer of BTC Markets in Melbourne. The sector welcomes fresh thinking and allows for flexibility, Bowler said.
/yhoo.it/2Y3WAnS

Switzerland Authorities Impose Anti-Money Laundering Policies on Crypto
David Thomas – BeInCrypto
In an effort to combat money laundering, Swiss authorities are seeking to limit the transaction amount threshold for cryptocurrency transactions to 1000 Swiss francs, after which identity of the party involved in the transaction is required.
/yhoo.it/3odRe4d

SEC should allow investors to ‘choose their own’ bitcoin exposure: Grayscale head of ETFs
Brian Cheung – Yahoo Finance
The Securities and Exchange Commission (SEC) is still hesitant to approve the many applications to start a much-awaited bitcoin exchange-traded fund (ETF), and one major player in the space is calling on the SEC to give investors a choice. David LaValle, managing director and global head of ETFs at Grayscale, said the SEC should allow investors to “choose their own exposure that meets their own investment needs and their own investment thesis.”
/yhoo.it/3AOMi9s

China’s ban throws cold water on the future of cryptocurrency
Scott Rosenberg – Axios
China’s latest move to ban cryptocurrency shows how tough it will be for the technology to deliver on its backers’ vision of disruptive, decentralized change. The big picture: Control of the currency is a foundation of sovereignty, and governments don’t plan on losing that control even as money inevitably turns digital.
/yhoo.it/3kOQXCw

Huobi Global to shut down existing accounts in mainland China
Teuta Franjkovic – Coin Rivet
One of the world’s biggest cryptocurrency exchanges has announced it will close all user accounts in mainland China by the end of the year. Huobi Global said it decided to take the step only a days after Beijing issued a blanket ban on all cryptocurrency trading and mining.
/yhoo.it/3zP5naj

China’s ban on crypto has sent traders piling into decentralized exchanges. Here’s a look at what DEX is and what tokens to watch
Camomile Shumba – Business Insider
The crypto market bounced back on Monday from the slump caused late last week by China’s outright ban on trading and mining. But it’s not been the major cryptocurrencies that have seen most of the action, or even some of the recent red-hot “altcoins”, but rather, decentralized exchange (DEX) tokens.
/yhoo.it/3kPyEgR

Ethereum researcher Virgil Griffith pleads guilty to helping North Korea dodge US sanctions
Ethan Wu – Business Insider
Virgil Griffith, an Ethereum Foundation researcher, pleaded guilty to aiding North Korea in sidestepping US sanctions using blockchain technology, according to a Bloomberg report.
/yhoo.it/2XOxc5b

Even the People’s Bank of China Can’t Kill Bitcoin FOMO; What’s “bad” for crypto is apparently “good” — despite the evidence suggesting otherwise.
Lionel Laurent – Bloomberg
The cryptocurrency crowd has wasted no time in dancing on the grave of China’s “FUD” (internet speak for fear, uncertainty and doubt). Last week’s move by the People’s Bank of China to ban crypto transactions and mining dented the prices of Bitcoin, Ether
/bloom.bg/3ukWeFq

Securitize Markets Unlocks Broader Access to Alternative Investments, Including Secondary Market Trading
New Marketplace Completes Securitize’s End-to-End Platform to Ease the Investing and Trading of Alternative Assets, with a Goal to Increase Overall Liquidity of the Private Markets
Securitize
Securitize, Inc. has announced the launch of a fundamentally better way for investors to access the private capital markets. Largely inaccessible behind highly fragmented websites and antiquated paper processes, alternative assets in the private markets have remained stubbornly illiquid and closed off to most investors. Open today, Securitize Markets provides investors access to invest in and trade a broad range of alternative assets, including private company equity, real estate and funds, within a single regulated digital marketplace.
/prn.to/3ofZpNm

Politics

Yellen warns Congress has just three weeks before US expected to default on debt
Aris Folley – The Hill
Treasury Secretary Janet Yellen warned lawmakers in a letter on Tuesday that the U.S. is headed for a default on its national debt in three weeks if Congress does not act quickly to raise or suspend the debt limit. “We now estimate that Treasury is likely to exhaust its extraordinary measures if Congress has not acted to raise or suspend the debt limit by October 18. At that point, we expect Treasury would be left with very limited resources that would be depleted quickly,” Yellen wrote.
/bit.ly/3ieultG

West Virginia Gov. Jim Justice Offers $300 Million Settlement Payment to Credit Suisse; proposal is part of talks between the governor’s family business over money borrowed from Greensill Capital
Julie Steinberg – WSJ
The West Virginia governor has offered a $300 million payment and half the value of his family coal businesses to settle loans from the now-defunct Greensill Capital, according to people familiar with the deliberations.
/on.wsj.com/3uic9nH

Red Covid; Covid’s partisan pattern is growing more extreme.
David Leonhardt – NY Times
During the early months of Covid-19 vaccinations, several major demographic groups lagged in receiving shots, including Black Americans, Latino Americans and Republican voters. More recently, the racial gaps — while still existing — have narrowed. The partisan gap, however, continues to be enormous. A Pew Research Center poll last month found that 86 percent of Democratic voters had received at least one shot, compared with 60 percent of Republican voters.
/nyti.ms/3ofkyHG

U.S. Democratic lawmakers urge Biden not to reduce biofuel mandates
Stephanie Kelly and Jarrett Renshaw – Reuters
A group of U.S. Democratic lawmakers called on President Joe Biden to halt a plan to slash the amount of biofuels that oil refiners must blend into their fuel, according to a letter dated Monday.
/yhoo.it/3ufllt6

Like the U.S., Germany Is Divided. Unlike America, It’s Coping; Both have deep fault lines. The difference is how the two cultures deal with them.
Andreas Kluth – Bloomberg
At first blush, Germany’s parliamentary election was a victory for moderates, and a clear defeat for extremists. The populist fringes — the Alternative for Germany (AfD) on the far right and the post-communist Left on the opposite side — both lost seats. The vast majority of votes went to one of the four centrist party blocs, although there were large swings between those.
/bloom.bg/3B0CclK

Boris Johnson’s Next Big Make-or-Break Crisis Is Gas; Fuel shortages and empty shelves are becoming a major challenge for the U.K. government. Short-term fixes won’t be enough.
Therese Raphael – Bloomberg
It’s not a good sign when government ministers shout on Twitter, “THERE IS NO FUEL SHORTAGE.” That’s like telling people “Do not imagine an elephant.” In this case, not much is left to the imagination. The U.K. is panicking about fuel. Up to 90% of pumps in major British cities have reportedly run dry, and the British army is on standby to drive trucks to transport gas. The country’s competition law (which protects consumers from predatory high prices) has been suspended so that fuel deliveries can be coordinated to meet demand, and the government is in talks to keep the country’s second biggest oil refinery from collapse.
/bloom.bg/3ukXrw5

UAE Royals Said to Direct Tom Barrack’s Influence Campaign
David Voreacos, Caleb Melby, and Patricia Hurtado – Bloomberg
Crown prince, people say, is referenced in indictment; Barrack ‘tasked’ by Emiratis to boost their clout, U.S. says
Just weeks after Donald Trump’s election in November 2016, American billionaire Tom Barrack received a royal welcome in the United Arab Emirates. On that December day, Barrack met with the crown prince of Abu Dhabi; the prince’s brother, who also serves as the country’s national security adviser; and a third royal who oversees the country’s Supreme Council for National Security, according to people familiar with the events. His audience with the high-ranking men shows how prized he was as a guest, and Barrack encouraged his hosts to envision what the next four years under Trump could hold for them.
/bloom.bg/3AVeI1K

Wall Street Helps Ron DeSantis Amass a Hefty War Chest for 2022; Florida’s governor has raked in millions from donors like Ken Griffin and Thomas Peterffy, who calls DeSantis his “favorite man.”
Michael Smith, Jonathan Levin, Bill Allison – Bloomberg
When it comes to the likely Republican presidential candidates in 2024, Wall Street’s money is on Florida Governor Ron DeSantis—not former President Donald Trump, who’s been teasing another run at the White House. A fifth of the $55 million that DeSantis has raised this year came from hedge fund billionaires, private equity bankers, investment managers, and other finance industry donors. Trump, who got less than 2% of his 2020 reelection funds from Wall Street, has raised the bulk of his $100 million war chest from small-dollar donors.
/bloom.bg/3ARuv1j

Regulation

Wells Fargo Settles DOJ Foreign Exchange Lawsuit
Bob Van Voris and Chris Dolmetsch – Bloomberg
Wells Fargo reached a settlement with the U.S. Justice Department over claims it overcharged commercial customers who used the bank’s foreign exchange services.
/yhoo.it/3iauzBY

Think the U.S. Stock Market is the Biggest Market in the World? — You’d be Wrong, and a There is a New Way to Trade It
Luke Jacobi – Benzinga
Think that the United States stock market is the largest and most liquid market in the world? Not by a long shot. U.S. treasuries are, by far, the biggest and most actively traded market in the world. In 2020, the dollar value amount of U.S. treasuries traded reached an average of over $600 billion per day, handily beating the U.S. stock market figure of an average of $450 billion traded per day — no small feat.
/yhoo.it/3lY7L9I

India market regulator tightens risk management rules for mutual funds
Reuters
India’s market regulator on Monday tightened risk management rules for mutual funds, including specifying guidelines to identify, measure and report various risks, in an effort to protect the interest of investors in a fast-growing industry.
/yhoo.it/2XXaxnS

Wells Fargo reaches $37.3 million settlement of U.S. claims it overcharged clients
Reuters
Wells Fargo & Co on Monday reached a $37.3 million settlement to resolve U.S. government accusations that it fraudulently overcharged hundreds of commercial customers who used its foreign exchange services.
/yhoo.it/3m0Qxss

U.S. SEC charges individuals in ‘meme stock’ options trading scheme
Reuters
The U.S. Securities and Exchange Commission on Monday charged two individuals for a fraudulent trading scheme involving so-called “meme stocks” aimed at taking advantage of a surge in retail trading driven by social media in early 2021. The securities regulator said it charged a Florida resident and his friend for allegedly using a form of market manipulation called wash trading to collect rebate payments from exchanges as retail traders piled into “meme stocks” – stocks being actively promoted on social media.
/yhoo.it/3ia3lva

SEC Charges Florida Payday Lender and CEO with Affinity Fraud Targeting the Venezuelan-American Community
SEC
The Securities and Exchange Commission today announced charges against Sky Group USA LLC, a payday loan company based in Miami, and its CEO, Efrain Betancourt, Jr., for fraudulently raising at least $66 million through the sale of promissory notes to more than 500 retail investors, including members of the South Florida Venezuelan-American community.
/bit.ly/2XX38o8

Erik Gerding joins Division of Corporation Finance as Deputy Director, Legal and Regulatory Policy
SEC
The Securities and Exchange Commission today announced that Erik Gerding has been named Deputy Director, Legal and Regulatory Policy, for the Division of Corporation Finance, effective Oct. 4, 2021. Erik comes to the SEC from the University of Colorado Law School, where he has been a Professor of Law and a Wolf-Nichol Fellow. His focus has been in the areas of corporate and securities law and financial regulation.
/bit.ly/3zOL64o

CFTC Orders Citibank and Citigroup Global Markets Limited to Pay a $1 Million Penalty for Swap Data Reporting Violations, Related Supervision Failures, and Violation of a prior CFTC Order
CFTC
The Commodity Futures Trading Commission today filed and settled charges against Citibank, N.A. and Citigroup Global Markets Limited (collectively, Citi), two provisionally registered swap dealers, for failing to comply with certain swap dealer requirements for reporting Legal Entity Identifier (LEI) information to a swap data repository (SDR) and related supervision failures. The order also charges Citi for violating the cease and desist provision of a 2017 CFTC order relating to reporting and supervisory failures. [See CFTC Press Release No. 7616-17]
/bit.ly/2Y8yUPc

CFTC Imposes $650,000 Penalty Against Refinitiv US SEF LLC for Swap Reporting Failures; First CFTC Enforcement Action Charging a Swap Execution Facility with Reporting Violations
CFTC
The Commodity Futures Trading Commission today filed and settled charges against Refinitiv US SEF LLC, a registered swap execution facility, for failing to report certain categories of swap data. The order requires Refinitiv to pay a $650,000 civil monetary penalty and comply with certain undertakings.
/bit.ly/2WhGuWU

CFTC Orders Mizuho Capital Markets LLC to Pay $1.5 Million for Swap Portfolio Reconciliation, Other Compliance and Supervision Failures
CFTC
The Commodity Futures Trading Commission today filed and settled charges against Mizuho Capital Markets LLC, a provisionally registered swap dealer, for failing to comply with certain swap dealer requirements concerning reconciling swap portfolios with its counterparties; providing disclosures to counterparties concerning the daily mid-market mark of swaps; and reporting swap transactions to a swap data repository (SDR); and related supervision failures.
/bit.ly/39KfzGq

UPDATE 1-UK financial watchdog warns social media over “dodgy” ads that fuel fraud
Reuters
Social media firms must do more to stop advertising “dodgy financial promotions” that fuel a surge in fraud or face action, Britain’s Financial Conduct Authority said on Tuesday. “We are putting them on notice that we expect them to be involved in this process of protecting the community,” the FCA’s head of enforcement Mark Steward told the watchdog’s annual meeting.
/yhoo.it/3zYTuid

Sanofi ditches mRNA COVID-19 vaccine after rivals’ success
Reuters
Sanofi is dropping plans for its own mRNA-based COVID-19 vaccine because of the dominance achieved by BioNTech-Pfizer and Moderna in using the technology to fight the pandemic, the company said on Tuesday.
/yhoo.it/3kODbQI

ESMA to focus on supervision, sustainability, digitalisation and the Capital Markets Union in 2022
ESMA
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published its 2022 Annual Work Programme (AWP), setting out its priority work areas for the next 12 months to deliver on its mission to enhance investor protection and promote stable and orderly financial markets.
/bit.ly/2WkvVm7

ISDA Responds to HM Treasury on Wholesale Market Review
ISDA
On September 24, 2021, ISDA submitted a response to HM Treasury on the Wholesale Markets Review (WMR). The WMR is a welcome opportunity to tailor the UK’s revised Markets in Financial Instruments Directive (MIFID II)/Markets in Financial Instruments Regulation (MIFIR) framework to the UK market, and ISDA members support a large majority of the proposals. However, ISDA has proposed several key changes, including recalibrating the transparency regime for derivatives markets, with the aim of achieving greater, more meaningful transparency in the UK. ISDA welcomes HM Treasury’s proposals that all post-trade risk reduction services should be exempt from the derivatives trading obligation and the scope of the derivatives trading obligation and clearing obligation should be realigned. ISDA also welcomes HM Treasury’s proposals to simplify and improve the systematic internalizer regime.
/bit.ly/3ASNqZF

— Asset Management Advisory Committee by Commissioner Hester M. Peirce — SEC
— Remarks at the Meeting of the Asset Management Advisory Committee by Sarah ten Siethoff, Acting Director, Division of Investment Management — SEC
— Remarks Before the Small Business Capital Formation Advisory Committee Meeting by Commissioner Elad L. Roisman — SEC
— Remarks at SEC Small Business Capital Formation Advisory Committee Meeting by Commissioner Hester M. Peirce — SEC
— Prepared Remarks Before the Small Business Capital Formation Advisory Committee by Chair Gary Gensler. — SEC
— Prepared Remarks Before the Asset Management Advisory Committee by Chair Gary Gensler — SEC

Investing and Trading

Margin Debt Nearing $1 Trillion May Not Be a Sign of Euphoria
Lu Wang and Melissa Karsh – Bloomberg
bergMargin debt just shot back to an all-time high in the stock market. Is it a sign of an overheating market? Not quite yet, says JPMorgan Chase & Co.’s prime broker.
/yhoo.it/2XYTuSm

Treasuries Face Risk of Prolonged Selloff From Convexity Hedging
Edward Bolingbroke – Bloomberg
The latest burst higher in Treasury yields could get an extra push from hedging flows linked to mortgage-backed securities and a cold shoulder from Japanese investors, often known to buy the dip in the U.S. government bond market.
/yhoo.it/3AQmrOf

Natural Gas Soars Most Since Last Winter on U.S. Scarcity Fears
Gerson Freitas Jr. – Bloomberg
Natural gas prices surged to a fresh seven-year high in the U.S. as the expiration of October options added momentum to a rally fueled by escalating concerns about tight winter supplies.
/yhoo.it/3ARPeSA

Famed Gas Trader Arnold Says Europe Crisis Is Warning for U.S.
David Wethe – Bloomberg
John Arnold, the billionaire philanthropist who made his fortune betting on natural gas prices, says the energy crisis in Europe should serve as a cautionary tale for the U.S. about transitioning away from fossil fuels too quickly.
/yhoo.it/39HzEx9

Zillow’s Home-Flipping Bonds Draw Wall Street Deeper Into Housing; The company’s iBuying program is part of a boom in programs that make it faster for customers to sell.
Patrick Clark, Noah Buhayar – Bloomberg
Zillow Group Inc. is best known for the addictive real estate listings that keep people browsing the internet all night, checking out interior shots of homes for sale or the estimated prices of their own houses or the ones down the street. But Chief Executive Officer Rich Barton has staked his company’s future on a bet that its software can also ease a critical pain point for U.S. homeowners: the time it takes to sell. In recent years, Zillow has essentially dived into the house-flipping business, offering to quickly take properties off sellers’ hands. And in the process it’s helping pull Wall Street even deeper into the $2 trillion U.S. housing market.
/bloom.bg/3ARWrC8

Trafigura paid $390m in share deal with Angola’s ‘General Dino’; Price highlights costs of unwinding one of commodity group’s most controversial relationships
Tom Wilson – FT
Trafigura paid a retired Angolan general $390m for shares in an international fuel supplier it controls, in a deal whose terms provide a glimpse into the costs of unwinding one of the Swiss commodity trader’s most lucrative yet controversial relationships.
/on.ft.com/3AP2ckd

Environmental, Social and Corporate Governance

PennEast Gas Project Halted in Latest U.S. Pipeline Casualty
Simon Casey and Gerson Freitas Jr. – Bloomberg
A $1 billion project to haul natural gas from Pennsylvania to New Jersey has become the latest casualty of opposition to pipelines across the U.S.
/yhoo.it/3CSEhRk

Making Sense of the Narratives Around Europe’s Energy Crunch; How people interpret the facts has a lot to do with where they stand on climate change
Akshat Rathi – Bloomberg
Europe’s going through an energy crunch with electricity prices at record highs and fears that the continent may have to shut factories to ensure homes have gas for heat. It’s an awkward situation, to say the least, as the U.K. prepares to host the global climate summit COP26 next month and the European Union begins to put its Green Deal into action.
/bloom.bg/3zNivg2

Fed Climate Stress Test Model for Banks Seen in Research Paper
Christopher Condon – Bloomberg
Model could be first step toward more formal scenario analysis; Model finds ‘economically substantial’ hit on banks in 2020
A new study published by the Federal Reserve Bank of New York offers a model for potential future stress tests on big banks for their exposure to risks from climate change, according to Morgan Stanley.
/bloom.bg/3zIY0kt

Climate-Change Goals Meet Resistance in U.K.’s Former Coal Country
In an English town, locals say new mining jobs should trump climate aims, posing a dilemma for Prime Minister Boris Johnson ahead of the COP26 summit
Max Colchester – WSJ
In a weed-strewn field on the edge of this harbor town, Britain’s lofty climate-change ambitions are colliding with economic reality. The last of the U.K.’s deep mines in this area closed in the 1980s and the nation that used coal to power the industrial revolution now uses very little for energy generation. Even this northern town’s mining museum shut its doors.
/on.wsj.com/3iarOk8

ESG may not be the driver of fresh investment money that Wall Street expects
Debbie Carlson – MarketWatch
It may seem that a wall of money is flowing to sustainable investing, but researchers at Morningstar suggest this view may be too simplistic. While most people say they are moderately interested in investing in companies that score well on environmental, social and governance metrics, they consider it just one of several factors in their decision and may not follow through with cash.
/on.mktw.net/3ERwsNE

Sustainable Finance is Going Mainstream: Here’s How You Need to be Prepared for Investor-Led Change
Noel Hughes, Caitlin Snelson – Vinson & Elkins via Nasdaq
It can sometimes be hard to track what’s happening in the world of “green investing” as the number of announcements and initiatives on environmental, social and governance (ESG) and sustainable finance have been accelerating in the last six months.
/bit.ly/3ukpvjj

Institutions

U.S. pandemic fraud crackdown yields first case against bank employees
Jody Godoy – Reuters
U.S. prosecutors have brought what is believed to be the first case against bank employees who allegedly exploited multi-billion dollar programs aimed at helping small businesses survive the COVID-19 pandemic.
/yhoo.it/3ANq4oo

Morgan Stanley’s Top Female Executive in Asia to Retire; Gokul Laroia to become the bank’s sole Asia Pacific CEO after Co-CEO Wei Sun Christianson departs at the end of the year
Jing Yang – WSJ
Morgan Stanley’s MS 2.13% top female executive in Asia, Wei Sun Christianson, will retire from the bank at the end of this year after working at the Wall Street firm for nearly two decades. Ms. Christianson, 65 years old, is one of the most influential Asian women in global finance and was instrumental in helping the New York-based bank break into the China market. She has been Morgan Stanley’s China CEO since 2006 and its Asia Pacific Co-Chief Executive since 2011.
/on.wsj.com/3B0yUyU

Football Is the Next Big Thing for Hedge Funds and Private Equity; Alternative investment firms are flexing their muscle in the world’s most popular sport. We look at how they are doing it.
Irene Garcia Perez and David Hellier – Bloomberg
When AC Milan host Atletico de Madrid in the Champions League on Tuesday evening, it will be a clash between Italy’s most successful team in Europe’s elite soccer competition and last year’s Spanish title winner.
/bloom.bg/3uw3kXL

Bank Mergers Are On Track to Hit Their Highest Level Since the Financial Crisis; Deals totaling more than $54 billion have been announced this year, up from about $17 billion at this time last year
Orla McCaffrey – WSJ
Banks are on pace this year to merge at a level not seen since the 2008 financial crisis. It is a sharp turnaround from last year, when the economy spiraled and many regional and community banks put merger plans on the shelf. Now, bank executives are feeling more certain about what the future holds, but some are finding it hard to make it on their own. Though the economy has in many ways recovered from 2020, loan demand is still low and profits from lending are slim.
/on.wsj.com/3ojei1t

Citi to pay $1 million penalty for swap data reporting failures; According to the CFTC, Citi failed to correctly report legal entity identifier (LEI) information to a swap data repository (SDR).
Annabel Smith – The Trade
Provisionally registered swap dealers Citibank N.A and Citigroup Global Markets have been ordered to pay a $1 million penalty for swap data reporting violations.
/bit.ly/3ANEt3W

StoneX appoints new head of structured credit banking products from BofA; Incoming head brings two decades of experience from roles at Bank of America, ICP Capital, Morgan Stanley, Lehman Brothers, and PricewaterhouseCoopers.
Wesley Bray – The Trade
StoneX Group’s fixed income division has appointed a new managing director, head of structured credit banking products, as it looks to strengthen its structured credit business. Mary Stone will take on the role, bringing two decades of experience to StoneX, having led banking teams and structuring loan strategies at various top industry names.
/bit.ly/3ieSrED

Regions

Q&A: Exchange Leaders Discuss China’s Evolving Markets, Managing Global Risks
Benzinga
China has in recent years begun to liberalize its markets. One effect has been the growth of still nascent futures and options exchanges. Today, China has five domestic derivatives exchanges and trading volumes have been on an upward trajectory as domestic investors become more familiar with futures and options, and demand from foreign investors increases.
/yhoo.it/3kHs23Y

HSBC Bets Big on China as Pressure Mounts in London
Harry Wilson, Denise Wee and Ambereen Choudhury
Bloomberg
The interrogators lit into Noel Quinn, as if he were a latter-day Neville Chamberlain. Where were his ethics? asked members of the U.K. Parliament. His morals? His stand against totalitarianism? Comparisons with 1930s Germany often seem “mad,” one politician allowed, but is any country “so evil and wicked” that Quinn would pull his business?
/yhoo.it/3kL0kTL

Afghanistan’s financial system is about to collapse, lender warns, as the US keeps nearly $10 billion in reserves frozen from the Taliban
Sinéad Baker – Business Insider
Afghanistan’s banking system is close to collapsing, the head of one of the country’s biggest lenders has warned. Syed Moosa Kaleem Al-Falahi, the chief executive of the Islamic Bank of Afghanistan, told the BBC that Afghanistan’s financial industry was dealing with an “existential crisis” as customers panic after the Taliban took over the country last month, and Western nations and agencies freeze the country’s funds in response.
/yhoo.it/3zKVZnX

Hong Kong Asks Banks to Report Exposure to China Evergrande
Chanyaporn Chanjaroen and Kiuyan Wong – Bloomberg
Hong Kong’s central bank asked lenders to report their exposure to debt-laden China Evergrande Group on concern over potential systemic risks to the region’s financial system, according to people familiar with the matter.
/yhoo.it/3uk3mSd

China’s Electricity Crunch Is World’s Latest Supply-Chain Threat
Bloomberg News
China’s energy crisis is shaping up as the latest shock to global supply chains as factories in the world’s biggest exporter are forced to conserve energy by curbing production.
/yhoo.it/3ATqTfi

China has tools to avoid Evergrande crisis, says ADB head
Leika Kihara – Reuters
China has sufficient buffers and policy tools to prevent debt-riddled developer China Evergrande Group from triggering a global financial crisis, Asian Development Bank President Masatsugu Asakawa said on Tuesday.
/yhoo.it/2XUWjmM

Novel $10.7 Billion Swedish Deal Reinvents Real Estate Finance
By Charles Daly and Love Liman – Bloomberg
Heimstaden Bostad’s debt refinancing highlights funding trend; Euros have overtaken krona as main property funding currency
A historic shift in how Swedish property firms fund themselves was already underway before a little-known private company revealed a $10.7 billion acquisition that will put the trend firmly on the map.
/bloom.bg/3AQpYfw

Miscellaneous

Finally, something business leaders can actually do about crime; A coalition of violence-prevention experts say they’ve learned a few things about what it takes to turn at-risk men from a life of crime to something more productive. That’s where you come in.
Crain’s Chicago Business Editorial Board
Chicago business leaders are rightly worried about the surge of crime that’s rocked the city’s neighborhoods and recently spilled over onto the streets of downtown. Nearly every day—and certainly every weekend—brings word of carnage that shocks the people who live and work in this town and further damages our global reputation. Fortunately, there’s more business leaders can do about it than wring their hands and complain.
/bit.ly/3CNlJly

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