FOMO Turns to OMG for Crypto Traders Who Bought at Peak Prices

Jan 25, 2022

First Read

Hits & Takes
John Lothian & JLN Staff

Well, that was terrifying and fun all on the same day yesterday as the stock market plunged and then recovered late. During Monday’s session, at one point, $3 trillion in market value was lost. It brought back memories of 1999.

Jessica (Titlebaum) Darmoni is the subject of a profile piece in The Glass Hammer, a publication she used to write for nearly from its start. She also used to work for John Lothian News, which is mentioned prominently in the piece, as is her time at the NFA and the co-founding of WILD. Jessica is now at ErisX and about to become a Cboe Global Markets employee, upon the completion of the deal for Cboe to acquire Eris Digital Holdings, LLC (ErisX).

Jessica’s story is a great case study of the value of reading the John Lothian Newsletter, as she did not have any background in derivatives before entering the industry and used it to educate herself. And she is one of the success stories of working for JLN and leveraging that experience for greater opportunities. It was a privilege to mentor her and she remains one of my favorite people.

In your J. Christopher Giancarlo news of the day, he has been named to the board of directors of Digital Asset.

Another J. Christopher was also in the news yesterday. ??J. Christopher Reyes, co-chairman of Reyes Holdings, a big beer and food distribution firm, was revealed as the buyer of the $36M Richard Driehaus mansion in Lake Geneva, Wisconsin, the Chicago Tribune reported.

ABN AMRO Clearing Chicago LLC is seeking 12 applicants for its Global Graduate Talent Program, a 12-month program with three business rotations. Two rotations are in your home country and one is abroad. You can learn more HERE.

CME Group Global Head of Equity Index and Alternative Investment Products Tim McCourt was interviewed by Nasdaq’s inhouse journalist Jill Malandrino and chatted on the TradeTalks program yesterday via LinkedIn about the contract size change on VOLQ futures and what it means for investors.

Bloomberg is reporting that New York and New Jersey are the worst states to retire in according to a survey conducted by WalletHub. The best state? Florida?

Do you want to know how much money you have to make to be in the top 1% of income in each of the 50 U.S. states? CNBC has the story.

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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This is John Lothian Podcast: Small Exchange SPRE Options to Launch January 25, 2022
JohnLothianNews.com

The Small Exchange announced plans to launch its first options contract on Small Precious Metals Product (SPRE) index futures on January 25, 2022. I interviewed Small Exchange CEO Donnie Roberts about the new product, Small Exchange’s plans for future options contracts, and the impending deal for the exchange to be acquired by Crypto.com.

Watch the video »

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Jessica Titlebaum Darmoni: Senior Manager, Head of Marketing, ErisX
Aimee Hansen – The Glass Hammer
“You should always ask for more when you’re talking about salary,” advises Jessica Titlebaum Darmoni. “You want to demonstrate that you are willing to negotiate for the best rate, for yourself and for them.” Darmoni speaks to self-educating herself on derivatives, the value of finding your culture match and why asking for more is an astute move.
/jlne.ws/3KEw20c

***** Jessica once asked me for a job and said she would work for free. I told her no. I would not allow her to work for free, even for an internship for which she was receiving educational credit towards her masters degree. Of course, I did not pay her well, I paid her the intern rate for those times, but she got her foot in the door and that was what she wanted.~JJL

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Webull to Offer Cboe Global Markets’ Index Options to Retail Traders
Cboe
Webull to offer Cboe’s new Nanos S&P 500 Index Options at launch, in first-quarter 2022- Cboe’s popular SPX and VIX options now available on Webull’s trading platform- Initiative underscores the two companies’ commitment to educate the growing retail trading community about index options
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced that Webull Financial LLC, a leading retail brokerage platform with a growing global presence, will offer Cboe’s new Nanos S&P 500 Index options at launch on its trading platform in first-quarter 2022. The product will be available to customers who are approved to trade options on Webull’s platform. This initiative underscores each of Cboe’s and Webull’s ongoing commitment to serve the retail trading community by providing them with access to new options products, data and educational resources to help them learn about options trading.
/jlne.ws/3fVWyE1

****** How much more are we going to grow the retail trade? Actually, we need to regrow retail trade after yesterday’s volatility.~JJL

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Mark Horowitz Joins IncubEx as Senior Vice President, Business Development
IncubEx
IncubEx, a developer of environmental products, markets, services, and technology solutions, is pleased to announce that Mark Horowitz has joined as Senior Vice President, business development. In his role, he will provide strategic guidance and support for current and future business opportunities for IncubEx and reports to Dan Scarbrough, President and COO of IncubEx.
/jlne.ws/3tRYdCM

***** There do seem to be plenty of business opportunities for IncubEx to develop.~JJL

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How to Master Retail Trading
Charlie Wells and Claire Ballentine – Bloomberg Wealth
What You Need To Know
By now, you’ve heard the stories. A 36-year-old sells GameStop Corp. stock at just the right time and pockets enough cash to pay off his student loans. A banker makes so much money investing in Dogecoin that he quits his job. Day traders predict that pandemic news will hurt airlines and quickly buy up travel stocks, which bottom out for a few days — but then jump right back up in value.
/jlne.ws/3fW2ddh

***** This should be titled “How to make $1 million dollars.” But this is so much more palatable from a regulatory standpoint.~JJL

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What Taleb Gets Wrong – and Right – About Bitcoin; Crypto may not have an economic anchor, but art, diamonds, gold and many other things have value only because other people value them, not from any direct economic use.
Aaron Brown – Bloomberg
Bitcoin has fallen 50% since November. This is not unusual for the cryptocurrency; it did the same thing from April to July 2021, and quickly rebounded. From a pure statistical viewpoint, Bitcoin looks like a very high volatility asset without strong medium- or long-term tendencies to trend or revert. It’s not a perfect random walk with future direction independent of past price movements, but it’s closer to one than most major assets such as stocks, bonds and commodities.
/jlne.ws/3nSYUYE

****** He lost me at “wrong.” ~JJL

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Monday’s Top Three
Our top story Monday was our lead story, Hong Kong’s financial sector faces talent crunch as expats head for the exit, from Reuters via Yahoo News. Second was the Departing Statement from Commissioner Elad L. Roisman, who stepped down as a commissioner of the SEC, on SEC.gov. Third was the Statement on Departure of Commissioner of Elad L. Roisman from the SEC’s chair and other commissioners, also via SEC.gov.

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MarketsWiki Stats
26,697 pages; 237,148 edits
MarketsWiki Statistics

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Lead Stories

FOMO Turns to OMG for Crypto Traders Who Bought at Peak Prices; “It’s like they’re saying it’s the future and then it crashes. I was like, ‘this is not cool,'” says one investor who recently bought into the hype.
Claire Ballentine and Paulina Cachero – Bloomberg
Just a few months ago, it seemed everyone was embracing crypto: Wall Street banks were building an army of experts and billionaires were finally jumping in. The mood in the market was FOMO. Now, crypto is in freefall, with the price of Bitcoin falling to a six-month low below the $34,000 mark — a 50% crash from its record high in November. Tokens like Ether and Solana are faring worse, and the mood has turned nightmarish for some retail investors who bought into the hype.
/jlne.ws/3ICeYGk

‘Crypto Winter’ Fears Chill the Battered Bitcoin Faithful
Katherine Greifeld and Vildana Hajric – Bloomberg
Bitcoin’s slump brings back memories of 2018 doldrums; Fed tightening, regulation cloud the outlook for crypto
There are few things scarier for investors than a bear market — unless you’re involved in crypto, in which case a winter is worse. The chilling term refers to a sharp slump, followed by a drop-off in trading and months of market doldrums — a phenomenon that memorably befell the crypto market in 2018. Bitcoin’s price plunged by more than 80% to as low as $3,100 from the end of 2017 through December of the following year, a period characterized by the boom-and-bust of initial coin offerings and several big banks shelving their plans to start cryptocurrency trading desks. Bitcoin wouldn’t reach a new high until December 2020, according to data compiled by Bloomberg.
/jlne.ws/3FTlM0o

Nasdaq Days Like This Once Were Common. During the Dot-Com Crash
Lu Wang – Bloomberg
Index hasn’t wiped out loss of almost 5% since early 2001; Late-day rally latest lurch in volatile market this year
The Nasdaq 100, along with the rest of the market, turned on a dime in the middle of its worst selloff in two years and vaulted back into the green, erasing a loss of nearly 5%. The move was the latest in a series of heart-stopping turnarounds that have dogged markets amid rising tensions around Federal Reserve policy.
/jlne.ws/3IyTBpd

Former CFTC Chairman J. Christopher Giancarlo Joins Digital Asset Board of Directors; As a prominent advocate for blockchain and digital assets, Giancarlo will help advance the company’s vision of building the Global Economic Network
Digital Asset
Digital Asset, the software and services provider building interconnected networks for global enterprises, today announced that the Honorable J. Christopher “Chris” Giancarlo, former Chairman of the United States Commodity Futures Trading Commission (CFTC), has joined the Company’s Board of Directors. As a member of the Board, Giancarlo will provide counsel to Digital Asset’s leadership on strategic matters, namely asset tokenization, distributed ledger technology (DLT) advancement and the regulatory and monetary developments impacting this space.
/jlne.ws/3FTK4r2

Treasury Wants Banks to Loop in Foreign Affiliates on Suspicious Transactions; The pilot program from the department’s anti-money-laundering watchdog would allow participating banks to share so-called suspicious activity reports with branches abroad
Richard Vanderford – WSJ
The U.S. Treasury Department’s Financial Crimes Enforcement Network has proposed a new rule that would allow banks to share so-called suspicious activity reports more readily with foreign affiliates. The proposed rule, which FinCEN announced Monday, would create a pilot program to allow banks to share SARs with foreign branches and affiliates, a bid to improve financial institutions’ ability to counter money laundering. The new program was mandated under the Anti-Money Laundering Act, which came into force in January 2021.
/jlne.ws/3rI4rSQ

‘Gamification’ in financial markets under scrutiny, says EU watchdog
Huw Jones – Reuters
Gamification has introduced a new generation of retail investors to financial markets who may not be aware there are few protections in assets like cryptocurrencies, the European Union’s securities watchdog said on Tuesday.
/jlne.ws/3fXt5cU

Crypto giant Binance kept weak money-laundering checks even as it promised tougher compliance, documents show
Angus Berwick, Tom Wilson – Reuters
In public, Binance said it welcomed government oversight. At the same time, the firm was withholding information from regulators, maintaining weak checks on customers and acting against its own compliance department’s recommendations, a Reuters investigation has found.
/jlne.ws/34aeUyB

The Strange Allure of the Blockchain
Tressie McMillan Cottom – NY Times
My family managed to get together for a small Thanksgiving dinner last year. It was our first gathering since April 2020. After a big meal, my cousin only wanted to talk about one thing: cryptocurrency. He is a middle-aged Black man from New York, just a few years older than I am, but those years make a huge difference in his job security. When he came of age, he got a blue-collar job working for the city. He has worked at that job since he was 17 years old, so he will be able to retire as a relatively young man. And since the job is unionized, my cousin will retire with a pension and health benefits — the kind of pathway to economic security that is becoming increasingly rare.
/jlne.ws/3nXwuNc

SEC’s Gensler Signals More Cybersecurity Rules on Way
Ben Bain – Bloomberg
Gary Gensler is considering expanding the Securities and Exchange Commission’s cybersecurity rules. Gensler on Monday questioned whether the SEC’s cornerstone cyber and compliance rules should apply to market-making firms and brokerages, in addition to stock exchanges and clearinghouses. Separately, he reiterated the agency will propose that the regulations cover Treasury trading platforms.
/jlne.ws/3AtmHmX

China Cracks Down on Rumors, Celebrities as Olympics Loom
Bloomberg News
Cyberspace regulator launches new campaign over online content; The effort comes days before the all-important Beijing games
China has kicked off fresh efforts to regulate online content, days before the start of the key Spring Festival holiday and Beijing Winter Olympics. The Cyberspace Administration of China’s monthlong campaign will target web content that violates laws and punish related accounts and platforms to cultivate a “healthy” environment for Chinese New Year, it said in a statement Tuesday. The Beijing games are scheduled to commence on Feb. 4, coinciding with the week-long holiday that begins Jan. 31.
/jlne.ws/33HPFnu

The Fed’s CBDC report was lame on purpose
Nate DiCamillo – Quartz
The US Federal Reserve released its long anticipated report on the potential for a digital dollar last week. Those hoping the world’s most powerful central bank would revolutionize the way we exchange money were disappointed. For starters, the Fed made clear that for now it is neither for or against launching a digital currency. And if it does decide to issue one, it wants banks to act as intermediaries, not unlike in the system that currently underpins most electronic transactions.
/jlne.ws/33HZX76

RJ O’Brien selects senior global sales director to head up institutional fixed income and multi-asset electronic trading; New global head of fixed income rates and e-trading sales will be responsible for expanding RJ O’Brien’s institutional fixed income and multi-asset algorithmic trading capabilities.
Annabel Smith – The Trade
RJ O’Brien has promoted from within in a bid to expand its institutional fixed income and multi-asset algorithmic trading businesses. Former senior global sales director, Amber Wright, has been promoted to head of fixed income rates and e-trading sales at the firm.
/jlne.ws/3AxesGH

Billionaire Leon Black Accuses Josh Harris of Trying to Destroy Him
Heather Perlberg – Bloomberg
Apollo’s Black adds Josh Harris to lawsuit against Ganieva; Harris representative calls accusations desperate and false
Leon Black escalated his fight against former business partner Josh Harris, naming him as a defendant in a lawsuit that lays bare the bitter battle for control of Apollo Global Management Inc. last year. The expanded allegations, in an amended complaint on Monday, add to a lawsuit initially brought in October against former Russian model Guzel Ganieva.
/jlne.ws/3r1exzo

Bank of America Says a Digital U.S. Dollar Is ‘Inevitable’
Allyson Versprille – Bloomberg
Digital dollar issuance likely between 2025 and 2030; In the meantime, stablecoin adoption set to flourish
The U.S. will likely move forward with its own digital currency, with issuance occurring between 2025 and 2030, according to Bank of America Corp. U.S. government-backed coins, also known as central bank digital currencies, or CBDCs, “are an inevitable evolution of today’s electronic currencies,” strategists Alkesh Shah and Andrew Moss, wrote in a report Monday. In the meantime, use of digital currencies issued by private entities will probably grow, they said.
/jlne.ws/3G4LEGt

Companies Must Protect Customers in U.K. Schemes, Watchdog Says
Lucca De Paoli – Bloomberg
Regulator says schemes used for benefit of company, creditors; FCA raised concerns over Amigo Loans, Provident proposals
The U.K.’s markets watchdog warned it will come down hard on struggling firms that leave customers out of pocket when they resort to legal procedures to manage their liabilities. The Financial Conduct Authority has seen an increase in the number of firms developing plans that deploy company or insolvency law, such as schemes of arrangement, to manage how much they owe in claims to their clients, the regulator said in a statement on Tuesday.
/jlne.ws/342zvES

Market Crash Hands Defeat to Traders Who Warred With Wall Street; With stocks and crypto tumbling, inflation soaring and the Fed poised to tighten policy, what’s a trading revolutionary to do?
Charlie Wells and Misyrlena Egkolfopoulou – Bloomberg
Exactly one year ago today, Chris Perrotta joined a revolution on Wall Street: He bought one of those crazy meme stocks — and went on to make a small fortune. Today Perrotta, like countless other amateur traders who pushed stocks “to the moon” and challenged the pros during the early 2021 mania, is watching the old dreams of a new Wall-Street order collapse around him.
/jlne.ws/3GZI8P9

The Bonus Boom Is Up Against a Shareholder Wall; The demands of corporate investors and regulators will tighten Wall Street’s freewheeling ways when it comes to compensation.
Marc Rubinstein – Bloomberg
The tension between labor and capital is as old as capitalism. On Wall Street, it plays out each year in bonus discussions, which began last week among the large firms.
/jlne.ws/3AtGTFi

Bosses Admit to ‘Proximity Bias,’ But Want Workers Back in Offices Anyway; Those more likely to want to work from home are already underrepresented in the highest paying jobs.
Matthew Boyle – Bloomberg
Among the biggest worries that executives have about remote work is a phenomenon known as “proximity bias,” meaning that the people who choose to return to offices will get ahead, while those who stay home will fall behind.
/jlne.ws/33TZBtQ

Coronavirus

Omicron’s Radical Evolution
Carl Zimmer – NY Times
As nurses and doctors struggle with a record-breaking wave of omicron cases, evolutionary biologists are engaged in a struggle of their own: figuring out how this world-dominating variant came to be. When the omicron variant took off in southern Africa in November, scientists were taken aback by its genetic makeup. Whereas earlier variants had differed from the original Wuhan version of the coronavirus by a dozen or two mutations, omicron had 53 — a shockingly large jump in viral evolution.
/jlne.ws/3fRDird

Pfizer and BioNTech launch trial of Omicron-targeted COVID vaccine
Michael Erman – Reuters
Pfizer Inc and BioNTech SE said on Tuesday they started a clinical trial to test a new version of their vaccine specifically designed to target the COVID-19 Omicron variant, which has eluded some of the protection provided by the original two-dose vaccine regimen. The companies plan to test the immune response generated by the Omicron-based vaccine both as a three-shot regimen in unvaccinated people and as a booster shot for people who already received two doses of their original vaccine.
/jlne.ws/3rRlkKT

Hospitals Ask Congress for $25 Billion Amid Omicron’s Onslaught
Lauren Coleman-Lochner – Bloomberg
They want more money to cover shortages of staff and supplies; Trade group also wants previously approved funds disbursed
Congress to give them another $25 billion and hand out all previously allotted funds to shore up facilities ravaged by the omicron outbreak. The money would pay for training and extra security as hospitals cope with staff shortages, higher costs and lost revenue, the American Hospital Association said in a letter to congressional leaders.
/jlne.ws/3KJDAic

Japan’s So Overloaded by Omicron It’s Starting to Confirm Cases Without Testing
Kanoko Matsuyama – Bloomberg
A Covid test may not be needed to be counted as infected in Japan, as an omicron surge quickly overtakes the country’s health-care resources and forces the government to find workarounds.
/jlne.ws/3KAlOxE

EU Shifts to Travel System Centered on Vaccination Status
Bloomberg
The European Union is aiming to make travel within the bloc easier by adopting a new system of Covid-related travel rules based more on a person’s vaccination status than on where they are coming from. Travelers with a valid digital Covid certificate — showing vaccination, recovery from the disease or a recent test — shouldn’t be subject to additional restrictions, following recommendations adopted by EU member states on Tuesday. Exceptions will still be allowed for travelers from particularly high-risk zones.
/jlne.ws/32vXfRj

China Offers Hong Kong Covid Test Help as Outbreak Spreads
Kari Soo Lindberg and Iain Marlow – Bloomberg
Carrie Lam says city should consider using that support; Financial hub is fighting an outbreak at huge housing complex
China has offered Hong Kong help to ramp-up a mass-testing blitz to stem an omicron outbreak in the financial hub, the city’s leader said, adding that broader lockdowns were not yet necessary. “Guangdong province has expressed to my office that they are happy to render support,” Hong Kong Chief Executive Carrie Lam told reporters at a regular press briefing Tuesday. “So, it’s about considering how we can best utilize their support to help Hong Kong.”
/jlne.ws/3G3nL26

Goldman Sachs Imposes Vaccine Mandate in Hong Kong by Feb. 24
Cathy Chan and Tracy Alloway – Bloomberg
Goldman Sachs Group Inc. is imposing a vaccine mandate on its Hong Kong employees, requiring all staff to get their shots before entering its offices as the city is grappling with a recent omicron outbreak. The rules will come into effect as of Feb. 24 and also include visitors, according to an internal memo confirmed by a Hong Kong-based spokesman.
/jlne.ws/3IBxU7X

What the latest European covid-19 data suggests for the rest of the world
Annalisa Merelli – Quartz
Europe might be seeing the end of the covid-19 emergency. A statement released yesterday by the World Health Organization (WHO) expresses cautious optimism, two years since the first cases of covid-19 were identified in France. Omicron could be good news in disguise, according to the WHO, because while it is causing surges in cases worldwide, it comes with lower hospitalization and death rates, particularly for vaccinated individuals. About a third of all covid-19 cases in Europe are now of the omicron variant, and the percentage keeps increasing, suggesting that it will soon outpace the more severe delta variant, as happened in the US.
/jlne.ws/349DcbG

Exchanges, OTC and Clearing

Clearstream launches the Primary Market Issuance API for Eurobonds
Deutsche Börse Group
End-to-end straight-through processing of origination and pre-closing issuance processes decreasing latency and reducing risk; Issuer agents and market participants now can obtain ISINs and request acceptance of securities issued in real-time; First API features include code allocation and ICSD admission
Deutsche Börse Group’s post-trade services provider Clearstream has launched its Primary Market Issuance API (PMI API) continuing to pursue innovation in the Eurobond market. As of now, issuer agents and market participants can obtain ISINs and request acceptance of securities issued under programme in real-time. Additional features of the new PMI API include allocation of the associated common code, CFI and FISN identifiers of the securities.
/jlne.ws/3H800Yk

Euronext launches 7th edition of its pan-European pre-IPO educational programme TechShare
Euronext
Euronext announces the launch of the seventh edition of its successful pre-IPO programme TechShare. This pan-European pre-IPO educational programme supports European Tech companies aiming to go public in the next 1 to 3 years. This year 1211 Tech companies will take part in the programme in ten European countries: Belgium, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, and Switzerland.
/jlne.ws/3tYG7PF

MiFID II/MiFIR: Transaction reporting according to Article 26 (5) MiFIR for non-MiFIR firms – Change of production launch date of the Regulatory Reporting Solution (RRS), updated documentation available
Eurex
Following highly valued feedback from Trading Participants to extend the simulation period, the launch date of the new RRS production environment has subsequently been postponed by two weeks to 29 March 2022. The respective client documentation has been updated and provided on the dedicated Eurex webpage.
/jlne.ws/346WrCK

CTBC Investments Selects ICE Index for CTBC Battery and Energy Storage Technology ETF
Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology and market infrastructure, today announced that CTBC Investments Co., Ltd. (“CTBC Investments”) has selected the ICE FactSet® Battery and Energy Storage Technology Index for its CTBC Battery and Energy Storage Technology ETF.
/bit.ly/3qWKqJh

OSE Signs Agreement to Cooperate on Establishing Osaka as a Global Financial City
JPX
Osaka Exchange, Inc. (OSE) today signed Agreement with Osaka Prefecture and Osaka City to cooperate on their project “Global Financial City OSAKA”, which aims to establish Osaka as an international financial center. Please see the details below.
1. Purpose
Osaka Prefecture, Osaka City and OSE will create a partnership, communicating and cooperating closely while each leveraging their own resources to carry out various activities which contribute to establishing Osaka as a global financial city.
/jlne.ws/3qZxeDo

NZX appoints Anna Scott to Technology Committee
NZX
NZX today confirmed the appointment of Anna Scott to its Technology Committee of the NZX Board, effective from 1 January 2022. Anna is the Chief Operating Officer and a Director of Hobson Wealth Partners. Anna has more than 20 years’ market experience, having held roles in programme and business management in London, Kuala Lumpur and Auckland. During her eight years in London, Anna was Global Business Manager for JPMorgan’s Investment Bank Currency trading division and following her return to Auckland consulted on a number of business improvement programmes, reviewing strategies, optimising business processes and ensuring the delivery of change programmes, before joining Hobson Wealth as COO.
/jlne.ws/3ICbGCU

Al-Mannai Corporation Responds To Qatar Stock Exchange Inquiry About The Increase In The Trading Volume Of Company’s Shares
Mondovisione
According to the Principles of Transparency and Disclosure, the management of the Qatar Stock Exchange addressed the Al-Mannai Corporation with regard to the increase in trading volume for the company’s shares on January 20-23, 2022. Attached the response of Al-Mannai to the exchange’s inquiry.
/jlne.ws/3KAtW18

GPW Becomes An Affiliate Of The World Federation Of Exchanges
Mondovisione
The World Federation of Exchanges has approved the Warsaw Stock Exchange (GPW) as a WFE Affiliate; The WFE has accepted GPW’s application to start the process of becoming a full member
The World Federation of Exchanges (WFE) approved the application of the Warsaw Stock Exchange (GPW) to become a WFE Affiliate. This establishes a partnership between GPW and WFE including the exchange of information and statistics as well as the participation of GPW in certain events organised by WFE. GPW’s affiliate status is an interim step towards full membership of the Federation.
/jlne.ws/3tUp5SF

Performance Bond Requirements – Energy Margin – Effective January 25, 2022 – CME

Fintech

Plaid must pay $58 million to users of Venmo, Robinhood and other apps
Steve Dent – Engadget
Even if you’ve never heard of a company called Plaid, they may owe you part of a multi-million dollar lawsuit settlement, Fast Company has reported. Plaid, which connects consumer bank accounts to services like Venmo, Robinhood, Coinbase and other apps, was accused of collecting excessive financial data from consumers. While denying any wrongdoing, it agreed to pay $58 million to all consumers with a linked bank account to any of its approximately 5,000 client apps.
/jlne.ws/3tYk6jZ

Fast-Growing FinTech Baton Systems Strengthens Management Team Appointing Industry Leader David Ornstein As First COO
Mondovisione
Baton Systems (“Baton”), the fintech transforming post-trade processing using distributed ledger technology (DLT), has announced the appointment of David Ornstein as the company’s first Chief Operating Officer.
/jlne.ws/3H3113B

Capital.Com Appoints Chief Of Staff To Support Accelerated Growth – Joe Rundle Brings 20 Years Of Experience In The Trading And Investment Space, Most Recently As CEO Of Markets.com
Mondovisione
Capital.com, the high-growth global trading and investing platform leading the UK leveraged trading industry in overall client satisfaction, has today announced the appointment of Joe Rundle as its Chief of Staff. Based in Cyprus, Rundle will oversee Capital.com’s expansion into new markets, as well as support the company’s diversification strategy with better products and solutions. This is a newly created role put in place to support Capital.com’s rapid growth.
/jlne.ws/3rO2t3F

Numis chooses Torstone’s post-trade platform to meet CSDR obligations
HedgeWeek
Numis, an independent UK investment bank and corporate adviser has extended its use of the cloud-based Torstone Post Trade platform, to manage its obligations under the Central Securities Depositories Regulation (CSDR). The Torstone Post Trade platform is a multi-asset, multi-entity cloud-based SaaS solution, covering electronic trade capture, allocation, confirmation, settlement, accounting, risk, corporate actions, reconciliation and regulatory reporting.
/jlne.ws/32tEhL4

Broadridge and Santander collaborate on proxy voting for Spanish market; New service aims to improve voting ecosystem in response to arrival of Shareholders Rights Directive II.
Richard Schwartz – Global Custodian
Broadridge Financial Solutions has launched a new issuer “golden copy” event notification and vote execution service for the Spanish market.  It is the latest market-ready extension to Broadridge’s growing Direct Market Solutions (DMS) product suite, which focuses on streamlining traditional voting processes by directly connecting investors and issuers.
/jlne.ws/3tX5W2o

Origin launches Instant-ISIN 2.0 driven by new Clearstream API
FFNews
Origin, the London-based fintech digitising debt capital markets, has launched Instant-ISIN 2.0, upgrading the instant code allocation feature that was initially released in June 2021. The feature now offers both allocation and activation of ISINs for Eurobond issuance (ie “XS” ISINs), while also providing CFI and FISN codes automatically.
/jlne.ws/3Isf7vQ

New funding round for Nivaura as momentum builds for digitisation; The digital workflow specialist is seeking to raise up to $10 million as interest builds in automating fixed income origination workflows.
Laurie McAughtry – The Trade
Nivaura is currently in the middle of a new funding round, seeking to raise $6-10 million by the end of February, The TRADE can reveal. The tech start-up, which focuses on digitising the workflow for debt origination, has done three previous funding rounds, with the latest in February 2019 raising $20 million from investors including The London Stock Exchange Group (LSEG), law firm Linklaters, Transamerica Ventures (part of asset management giant Aegon) and Spencer Lake, the former head of global markets at HSBC.
/jlne.ws/3rLP8Zr

DASH launches new options order management system; The FinTech said the newly redesigned OMS will help traders with their US-listed options workflows amid surging volumes said ION’s DASH.
Annabel Smith – The Trade
US options technology and execution provider, DASH Financial Technologies, has launched a newly re-designed order management system (OMS). The DASH OMS supports all US listed-options instruments and includes routing and algorithmic trading tools and straight-through-processing using DASH’s BrokerPoint network, as well as, pre- and post-trade tools, regulatory reporting and a market data consumption model.
/jlne.ws/3nRVR31

Cybersecurity

Delay in creating new cybersecurity board prompts concern
Alan Suderman – AP News
It’s a key part of President Joe Biden’s plans to fight major ransomware attacks and digital espionage campaigns: creating a board of experts that would investigate major incidents to see what went wrong and try to prevent the problems from happening again — much like a transportation safety board does with plane crashes.
/jlne.ws/3tWjnQ2

SEC eyes more expansive cybersecurity requirements
Cynthia Brumfield – CSO Online
Gary Gensler, chair of the Securities and Exchange Commission (SEC), has laid out an ambitious cybersecurity plan for his agency that could give it a far more expansive regulatory footprint than it currently has. Speaking to Northwestern Pritzker School of Law’s Annual Securities Regulation Institute, Gensler said that “the financial sector remains a very real target of cyberattacks” and is becoming “increasingly embedded within society’s critical infrastructure.”
/jlne.ws/3nWlxLZ

Using the NIST Cybersecurity Framework to address organizational risk
Chris Hughes – CSO Online
The U.S. federal government has been very active the past year, particularly with the cybersecurity executive order (EO) and associated tasks and goals that have come out of it. One framework and industry source that has been getting increased attention is the NIST Cybersecurity Framework (CSF).
/jlne.ws/3IFw1Y1

Sophos Extends Adaptive Cybersecurity Ecosystem with Zero Trust Network Access
Yahoo Finance
Sophos, a global leader in next-generation cybersecurity, today unveiled Sophos ZTNA, the only zero trust network access (ZTNA) offering that fully integrates with an industry-leading, next-generation endpoint solution – Sophos Intercept X – providing advanced endpoint protection and zero trust network access with a single agent. Sophos ZTNA introduces a transparent and scalable security model for connecting users and devices to applications and data, improving and simplifying protection against ransomware and other advanced cybersecurity threats.
/jlne.ws/33PZa3J

How To Maximize A Cybersecurity Budget In The Face Of Increasing Threats
Reuven Aronashvili – Forbes
As 2022 begins, many companies are making a fresh start with a new budget, including for cybersecurity. But with the growing number of cyberattacks and their increasingly complex nature, especially when it comes to supply chain attacks and ransomware, even those companies whose cybersecurity budgets have gone up for 2022 need to maximize their given budget to ensure it lasts all year and improves their security.
/jlne.ws/3KJYJIO

Cryptocurrencies

NFT Investments to Acquire Pluto Digital in a $130 Million Deal
Varuni Trivedi – FX Empire
In a recent statement, NFT Investments revealed its intention to acquire Pluto Digital PLC, a crypto technology and venture company. NFT Investments is an incubator specializing in the market for non-fungible tokens while Pluto Digital PLC (“Pluto”) is a crypto technology and venture company. The two firms entered into a non-binding letter of intent (LOI) for the acquisition for consideration of £96 million or $130 Million.
/jlne.ws/3AvnIuI

For the Crypto-Devoted, Market Wreckage Is a Test of Faith
Stacy-Marie Ishmael
Crypto chaos
If you’ve spent any time trying to make sense of what’s been happening in the world of digital assets these past few weeks, you’d be forgiven for feeling a sense of whiplash. Wild swings across the broad universe of cryptocurrencies have tested the resolve of even their most fervent devotees.
/jlne.ws/3tVEyBZ

How Opportunists Snagged More than $1 Million in NFTs For Mere Thousands; Buyers used a loophole on the OpenSea platform to purchase the digital assets at hidden, below-market prices.
Charlie Wells, Misyrlena Egkolfopoulou, and Alice Kantor – Bloomberg
A standard rule of shopping is that when prices go up, you have to pay the newer, higher rate — not the older, lower one. But what if the older price is still available, and you know where to look? Savvy opportunists managed to buy more than $1 million in non-fungible tokens (NFTs) from OpenSea, the largest market for such digital assets, at older and significantly lower prices by exploiting a bug in how the platform managed active listings. Attackers exploited users who had transferred their previously listed NFTs to other wallets without having canceled the listings.
/jlne.ws/32w0Qih

NYC Mayor Took His Paycheck in Crypto, Then Bitcoin and Ether Crashed; Even as the crypto market crashes, Eric Adams says he is a “long-term investor” in the digital asset.
Paulina Cachero – Bloomberg
As crypto traders are mired in the fallout from the recent market crash, users on social media pointed to a fellow enthusiast who may be suffering losses: New York City Mayor Eric Adams.
/jlne.ws/3nXCzt4

Beatles Memorabilia to Be Sold as NFTs; Items offered include John Lennon’s black cape he wore in the film Help! alongside an NFT of Paul McCartney notes for the hit “Hey Jude.”
Press Association via Bloomberg
An assortment of Beatles memorabilia, including outfits worn by John Lennon and hand-written notes by Paul McCartney, will feature in a new digital auction. Lennon’s son, Julian Lennon, has announced the start of bidding for the items which will be sold as non-fungible tokens (NFT) as part of Lennon Connection: The NFT Collection.
/jlne.ws/349z0bW

Bitcoin’s Price Tumble Tests Resilience of Crypto Miners
Olga Kharif and Josh Saul – Bloomberg
Miners for 23% of network at risk of not covering electricity; Possible Russia ban, rising mining difficulties loom
Bitcoin miners are facing a crucial test in the wake of the token’s 50% plunge from an all-time high. While many mining operations made a handsome profit during Bitcoin’s runup last year, the recent decline could punish those with less efficient operations.
/jlne.ws/3KJTk4u

Thailand Joins Global Peers in Adding Controls on Digital Assets
Anuchit Nguyen – Bloomberg
Thailand is limiting the use of digital assets for payments of products and services on concern they could endanger the country’s financial and economic systems. Regulators plan to use legal frameworks to control the widespread adoption of digital assets for settling transactions, the Bank of Thailand, Securities and Exchange Commission of Thailand and Ministry of Finance said in a joint statement on Tuesday. Authorities said they must balance the benefits, including the technologies they bring, with the potential hazards.
/jlne.ws/3rOH9eb

Bitcoin operation ignites debate around the waste from coal mining in Pennsylvania; Climate activists worry about the high-energy demand for bitcoin mining.
Stephanie Ebbs and Elizabeth Schulze – ABC News
A once-dormant power plant is humming with activity outside Pittsburgh as thousands of miners work 24 hours a day. The miners at this site aren’t people, but supercomputers running complex math equations. The first to solve the equation is rewarded with the digital financial token known as bitcoin.
/jlne.ws/3AsG6Vj

Politics

Atlanta Prosecutor Gets Judge’s Approval for Trump Grand Jury
Brett Pulley – Bloomberg
The Atlanta prosecutor investigating former President Donald Trump’s attempt to overturn Georgia’s election results received approval to convene a special-purpose grand jury to hear evidence. The approval of the special panel, which came in an order filed Monday by Fulton County Chief Judge Christopher S. Brasher, clears the way for Fulton County District Attorney Fani Willis to subpoena witnesses, something Willis has said is necessary because key witnesses are refusing to cooperate otherwise.
/jlne.ws/3H0TjHn

Peril Mounts for Johnson as Police Probe Lockdown Parties
Stuart Biggs and Kitty Donaldson – Bloomberg
Metropolitan Police confirms formal probe into allegations; Announcement escalates crisis surrounding U.K. prime minister
The crisis engulfing Boris Johnson escalated dramatically after the police began formally investigating allegations he and his staff held parties that broke the government’s pandemic rules. Johnson is battling for his political survival over a slew of reports about events in his Downing Street office, which were held at a time when social gatherings were banned under restrictions meant to curb the spread of coronavirus.
/jlne.ws/3rM7lpT

The Rise of the Crypto Mayors; This new political breed accepts paychecks in Bitcoin. The mayors also want to use buzzy new tech like NFTs to raise money for public projects.
David Yaffe-Bellany – NY Times
Scott Conger, the mayor of Jackson, Tenn., campaigned on a modest promise to improve local infrastructure. He planned to build sidewalks, open a senior center and repair the aging storm-water disposal system in his city of 68,000, about halfway between Nashville and Memphis.
/jlne.ws/32tEUnU

Regulation

DOJ Antitrust Chief Prefers Merger Lawsuits Over Settlements
David McLaughlin – Bloomberg
Kanter says negotiations often fail to safeguard competition; Biden cites industry consolidation as factor in inflation jump
The U.S. Justice Department’s new antitrust chief says he will favor filing lawsuits to block problematic mergers rather than accept settlements that allow companies to proceed with their deals. Jonathan Kanter said Monday night at a New York Bar Association event that the settlements that are frequently negotiated with government antitrust officials often suffer from “significant deficiencies” and fail to protect competition in markets.
/jlne.ws/3tYN8Qn

Former Financial Advisor Charged with Stealing $5.8 Million from Client
SEC
The Securities and Exchange Commission charged German Nino, a former securities broker and investment adviser representative for UBS Financial Services Inc., with stealing $5.8 million from a long-standing client. The SEC’s complaint alleges that Nino, of Weston, Florida, stole the investment funds from his client’s accounts over nearly a six-year period and used the majority of the money, $4.2 million, on gifts for several women with whom he had romantic relationships. Nino allegedly employed various methods to conceal his misconduct from his client, including creating fake account statements, forging signatures on letters of authorization, and altering UBS’s records for an affected account to prevent electronic notifications of wire transfers.
/jlne.ws/3fXIIAU

SEC Wins Summary Judgment Against Unregistered Penny Stock Dealer
SEC
Securities and Exchange Commission v. Justin W. Keener d/b/a JMJ Financial, No. 20-cv-21254 (S.D. Fla. January 21, 2022)
On January 21, 2022, Judge Beth Bloom of the United States District Court for the Southern District of Florida granted the SEC’s motion for summary judgment against Justin W. Keener d/b/a JMJ Financial. The SEC’s complaint alleged that Keener failed to register as a securities dealer with the SEC, or to associate with a registered dealer, when he bought and sold billions of newly issued shares of penny stock from at least January 2015 through January 2018. Keener obtained the shares directly from issuers after converting debt securities known as convertible notes. By failing to register, Keener avoided certain regulatory obligations for dealers that govern their conduct in the marketplace, including regulatory inspections and oversight, financial responsibility requirements, and maintaining books and records.
/jlne.ws/3qYcmwa

SEC Obtains Final Judgment Against Detroit Area Businessperson Who Fraudulently Used Investors Funds to Play Michigan State Lottery
SEC
On January 24, 2022, the U.S. District Court for the Eastern District of Michigan entered a Final Judgment against Viktor Gjonaj, whom the SEC previously charged for allegedly defrauding members of the Albanian-American community out of approximately $26.4 million, some of which he spent playing the Michigan State Lottery.
/jlne.ws/3rO0oon

FCA publishes guidance consultation for firms who seek to limit their liabilities
UK FCA
Firms using company or insolvency law to manage their liabilities have been warned they could face assertive action by the FCA if their proposals unfairly benefit them at the expense of their customers.
/jlne.ws/3fTiKP4

Investing and Trading

Small-Fry Traders Saw Massive Selling Binge Before Stock Rebound
Lu Wang and Elaine Chen – Bloomberg
Wondering what the force was that turned an orderly decline into a full-blown rout this morning? Mom and pop bailing. In a spasm of panicked selling early Monday, retail investors offloaded a net $1.36 billion worth of stock by noon, most of it in the first hour, according to data compiled by JPMorgan Chase & Co. strategist Peng Cheng. By his estimate, share disposals were 3.9 standard deviations heavier than the full-day average in the previous 12 months.
/jlne.ws/3qVPCNm

YouTube trader Meet Kevin says he’s dumped $20 million of stocks and crypto as market rout shakes retail investors
Harry Robertson – Business Insider
A popular financial YouTuber has said he dumped around $20 million of stocks and cryptocurrencies over the weekend, as the market rout tests the “buy-the-dip” impulse of millennial traders. Meet Kevin, real name Kevin Paffrath, has more than 1.7 million subscribers on YouTube and is widely watched by retail investors for his advice on the property and stock markets.
/jlne.ws/3tZeeqI

Retail Traders Bailed on the Market Right Before Stocks Rebounded
Lu Wang and Elaine Chen – Bloomberg
Wondering what the force was that turned an orderly decline into a full-blown rout this morning? Mom and pop bailing. In a spasm of panicked selling early Monday, retail investors offloaded a net $1.36 billion worth of stock by noon, most of it in the first hour, according to data compiled by JPMorgan Chase & Co. strategist Peng Cheng. By his estimate, share disposals were 3.9 standard deviations heavier than the full-day average in the previous 12 months.
/jlne.ws/3qVPCNm

Market Downturn Rattles Venture Investors Despite Funding Surge
Ivan Levingston, Benoit Berthelot, and Lizette Chapman – Bloomberg
Venture capital deals have boomed over the past two years; Some VCs have begun to issue warnings over private valuations
Sustained declines in the prices of technology stocks and cryptocurrencies are stirring panic among many venture capitalists, after a year of record fundraising and investment. Prominent investors have sounded alarms in recent weeks about a wide disconnect between private and public market valuations. Among the doomsayers are partners at the world’s most powerful tech investment firms, including Founders Fund, Sequoia Capital and SoftBank Group Corp.
/jlne.ws/3H3pPsh

FactSet Awards Vinson & Elkins’ Shareholder Activism Practice #1 Ranking for Company Defense in 2021; Vinson & Elkins Achieves FactSet’s Highest Ranking for 6th Year in a Row
Vinson & Elkins
Vinson & Elkins’ Shareholder Activism practice has been awarded the #1 ranking by FactSet for company and board representation based on the number of campaigns defended in 2021.
/jlne.ws/3AA5UyL

The Market Has Never Plunged 10% This Fast to Start a Year
Emily Graffeo and Lu Wang – Bloomberg
S&P 500 heads into correction territory after only 16 sessions; Expectations of tigher Fed policy weigh on U.S. equities
The stock market has never started a year falling as quickly as it is now. The S&P 500 has dropped 11% — heading into correction territory — in the first 16 trading days of 2022 in its worst-ever start to a year, according to Bloomberg data that goes back over nine decades.
/jlne.ws/3IwdU6x

Wall Street’s Model Portfolios Are Misunderstood; Any financial adviser who doesn’t understand that asset managers profit when investors use their products should find another profession.
Aaron Brown – Bloomberg
The label on the shampoo I used this morning advised me to “lather, rinse, repeat.” This is a clear conflict of interest! The manufacturer gains if I double my consumption of its product. Is the label instruction for my benefit or the manufacturer’s profit? Why have I never seen a shampoo label say “lather, rinse, then go out and buy a competitor’s product for a second shampoo”?
/jlne.ws/35or5IH

Stocks Don’t Rise or Fall Because of Interest Rates; The idea that the two move in opposite directions is grounded more in theory than data.
Nir Kaissar – Bloomberg
With the Federal Reserve poised to raise short-term interest rates to fight inflation, more than a few investors worry that higher rates will sink stocks. But there’s just as much reason to think the opposite will happen. The endlessly repeated idea that interest rates and stock prices move in opposite directions is grounded more in theory than data. The theory is that stock prices reflect the present value of companies’ future earnings, dividends or cash flows, a calculation that requires an interest rate to “discount” future dollars to the present. The higher the interest rate, the less future money is worth today, and vice versa. Therefore, rates go up and stock prices go down.
/jlne.ws/3H4gznY

Americans Say Financial Infidelity Is Just as Bad as Physical Cheating; Transgressions include holding secret debts, using an undisclosed credit card and having a hidden checking or savings account.
Paulina Cachero – Bloomberg
Having an affair isn’t the only way to ruin your relationship. More than half of Americans think that financially cheating on a partner is just as bad or even worse than the physical act, according to a new survey. Such transgressions involve keeping financial accounts and behaviors a secret from a better half. This includes spending more than a partner would be comfortable with, holding secret debts, using an undisclosed credit card and having a hidden checking or savings account.
/jlne.ws/3tWJAy1

Real Estate Is Emerging as a Hedge Against Roaring Inflation; Those seeking alternative investments from stocks and bonds may turn to the housing market, but that strategy still presents risks.
Claire Ballentine and Alice Kantor – Bloomberg
Surging markets spurred a buying frenzy for everything from stocks and cryptocurrencies to new homes over the last two years. Now, with inflation at a nearly 40-year high and at least three priced-in rate hikes, the hunt for investing safe havens is on.
/jlne.ws/3rNmlns

New Jersey and New York Ranked as the Worst U.S. States to Retire In
Alicia Diaz – Bloomberg
New Jersey is the worst U.S. state to retire in, according to a new ranking, with Mississippi and New York rounding out the bottom of the list. The biggest factor in the ranking was that New Jersey and New York were the two least affordable U.S. states to live in, according to the survey released Monday by personal-finance website WalletHub. The two states scored higher on quality of life and healthcare.
/jlne.ws/3gcFZ77

So Long Stock Bubble, and Thanks for All the Cash; Companies took advantage of bloated valuations to raise heaps of money. Now investors are paying the price.
Chris Bryant – Bloomberg
Clover Health Investments Corp. unsettled shareholders in November when the loss-making medical insurer, backed by investor Chamath Palihapitiya, announced a $300 million stock offering. The price of just $5.75 a share was almost two-thirds less than where it traded when joining the stock market at the start of the year. Clover already has a decent cash pile but waiting to raise money was risky given “potentially rising interest rates, a potential recession, and a contraction of investor liquidity, leading to a flight from technology-driven growth companies,” management later explained. It had a point: Clover’s stock has since plunged even further amid a massive rout of cash-bleeding technology firms.
/jlne.ws/3H0AMuB

Venture Investors’ $1.4 Billion Bet on News Faces a Reality Check
Alex Webb – Bloomberg
Spiffy online news outlets are hot again. Every month seems to welcome a new publication built on an established journalist’s existing audience. Recent years have brought Air Mail, Puck, Punchbowl News, Protocol, Grid, the Information, Tortoise, Axios, and the Athletic, not to forget Substack, where writers can sell subscriptions to their own newsletters. (Justin Smith, former chief executive officer of Bloomberg Media, just announced plans for such a media startup.)
/jlne.ws/3r19oHe

Investors Lose Appetite for Stocks of Unprofitable Companies; The Russell 2000 index of small companies has fallen 9.4% this year. Almost a third of the index is made up of companies with no profit
Karen Langley – WSJ
The prospect of rising interest rates has been especially hard on the Russell 2000 small-cap index, in large part because of the high proportion of small-caps that aren’t making money. During the market selloff of recent weeks, investors have been shedding speculative investments from tech stocks to cryptocurrencies. Speculative investments with their promise of higher returns thrived in the ultra-low-rate environment of 2021. Now that the Federal Reserve may raise interest rates as soon as March to combat inflation, investors are less comfortable with risk.
/jlne.ws/3AvGgLy

Environmental, Social and Corporate Governance

China’s Fake Snow Frenzy for Beijing Olympics Strains Water Supplies; Skiers and snowboarders will compete in the first Winter Olympics to rely completely on artificial snow, further straining dry regions around Beijing.
Bloomberg News
Weeks before the world’s best skiers and snowboarders descend on Zhangjiakou, a main site of the Beijing Winter Olympics, a dozen machines furiously churned out snow to cover the mountains they will race down. The slopes were soon blanketed in white, and the canons didn’t stop there. A deafening sound continued for hours as they coated the rest of the grey landscape to complete a perfect snowy backdrop that could be broadcast around the world. The water droplets they sprayed into the air hovered like white smoke over the venue as freezing temperatures and chemicals helped turn them into ice.
/jlne.ws/3tZjgn6

McKinsey Pegs the Price Tag of a Livable Climate at $9.2 Trillion a Year; A new analysis estimates the level of investment needed to reach net-zero emissions by 2050. It’s a lot, but less than the cost of inaction.
Eric Roston – Bloomberg
A new analysis from McKinsey & Co. estimates that the investment, in new infrastructure and systems, needed to meet international climate goals could be $9.2 trillion a year annually through 2050. That’s at least $3.5 trillion more a year than the world is currently laying out for both low-carbon and fossil-fuel infrastructure and changes in how people use land.
/jlne.ws/3H40f6o

The price tag for a net zero transition: $3.5 trillion a year; But that’s still cheaper than doing nothing.
Adele Peters – Fast Company
Dozens of countries and thousands of companies have committed to eventually reaching net zero emissions, meaning that they’ll reduce their pollution, and their remaining emissions will be balanced by nature and technology that can suck up CO2. But for the world to actually meet the goal of net zero emissions by 2050—a crucial step to avoid some of the worst climate impacts—progress has to happen at a much larger scale. (The plans also have to be credible, not just marketing lingo.) The entire economy, from how we grow food to how we power planes, has to transform.
/jlne.ws/3G1Ql41

Institutions

Goldman Sachs appoints Luke Sarsfield as co-head of asset management unit
Reuters
Goldman Sachs Group Inc said it has appointed Luke Sarsfield as the global co-head of its $2.47 trillion asset-management business, according to a memo seen by Reuters on Monday.
/jlne.ws/3rPlxhF

Press Release: Amber Wright to Lead New R.J. O’Brien Initiatives on Fixed Income and Multi-Asset Electronic Trading
R.J. O’Brien
R.J. O’Brien & Associates (RJO), the oldest and largest independent futures brokerage and clearing firm in the United States, today announced the promotion of Amber Wright to Executive Director, Global Head of Fixed Income Rates and E-Trading Sales, with responsibilities across RJO’s operating affiliates. Based in London, Wright is leading two key global initiatives – a significant expansion of the firm’s institutional fixed income product breadth and a new algorithmic trading capability across multiple asset classes.
/prn.to/3rNZOab

Tesla Files Countersuit Against JPMorgan in Warrants Dispute
Chris Dolmetsch – Bloomberg
Tesla Inc. countersued JPMorgan Chase & Co. over a suit the bank filed last year seeking a $162 million payment related to a series of stock warrant transactions. The automaker said in a complaint in federal court in New York on Monday that JPMorgan took advantage of an August 2018 tweet by Elon Musk to reduce the strike price of more than 1.9 million warrants it acquired on Tesla shares in 2014. Tesla called JPMorgan’s suit a “cynical” attempt to reap a windfall from the deal.
/jlne.ws/3FXJhFm

BNP Paribas to bring custody and related offerings throughout Hispanic Latam
BNP Paribas
Centralization of services from its Colombia headquarters allows BNP Paribas to bring custody and related offerings throughout Hispanic Latam When BNP Paribas launched its Colombian custody service in 2013, from the outset the idea was to ultimately use its Bogota facility as a centralized operational center for tapping into other regional markets, thereby providing clients with a single point of entry for investments throughout Hispanic Latam. Having already extended its custody reach to include Peru in 2016, earlier this year the bank went live with its new Chilean sub-custody service, making available the likes of custody, cash management, settlement, corporate actions and regulatory reporting on behalf of both global and regional non-resident investors. In compliance with Chile’s regulatory standards, local CSD Depósito Central de Valores will act as tax agent on behalf of BNPP.
/jlne.ws/3IsyswI

Bank of America Ousts Adviser Over Racially Charged Tirade at Smoothie Shop
Katherine Doherty – Bloomberg
Video of insults at a smoothie shop went viral on social media; Police say he confronted staff after son’s allergic reaction
Bank of America Corp. ousted a financial adviser after police arrested him for a racially charged tirade at a smoothie shop in Connecticut that was caught on video and viewed millions of times on social media over the weekend.
/jlne.ws/3nThtw0

Credit Suisse Wins Suit Brought by Convicted Ex-Banker
Ellen Milligan – Bloomberg
Ex-banker loses suit claiming $89 million in lost earnings; Vadim Benyatov had accused bank of failing to protect him
Credit Suisse Group AG won a lawsuit against an ex-banker who sought more than 66 million pounds ($89 million) in lost earnings after he was convicted of espionage in Romania.
/jlne.ws/3fS2xd7

Lattes on the Rise as Goldman, Citi Bring Staff Back
Thomas Buckley and Jeremy Scott Diamond – Bloomberg
London’s financial districts are beginning to welcome scores of traders, corporate lawyers and asset managers back to their desks after the U.K. government dropped its work-from-home guidance. Firms including Goldman Sachs, Citigroup, Man Group and Fidelity have encouraged employees to return to the office, which buoyed sales at Pret-A-Manger Ltd. cafes in the capital’s City and Canary Wharf areas by almost a fifth last week, according to Bloomberg’s Pret Index.
/jlne.ws/3EGjlOi

Credit Suisse Warns Profit Will Be Hit by Litigation Costs; Profit warning is the latest in a series of blows for the bank, whose chairman resigned earlier this month
Julie Steinberg – WSJ
Credit Suisse CS -4.55% Group AG issued a profit warning on Tuesday, the latest setback for the beleaguered Swiss bank. The bank said its profits for the fourth quarter of last year would be hit by setting aside provisions for legal costs of around 500 million Swiss francs, equivalent to $545 million, mostly related to legacy matters in its investment bank. The charge will be partially offset by real estate sales worth 225 million Swiss francs.
/jlne.ws/3417kGl

Regions

London Gets Back to the Office, But Bankers Drag Their Heels
Siddharth Vikram Philip – Bloomberg
London’s subway system maintained a gradual increase in ridership, showing progress in the campaign to lure workers back to the office — though the financial center continues to lag. As of 10 a.m. Monday, tube entries and exits were up 6% from a week earlier, Transport for London said in an email. Usage levels stood at 45% of normal, though the figure reached only 31% in and around the City of London financial district and Canary Wharf.
/jlne.ws/3qYuwy9

Banks Push Back Against China’s Plan to Curb Foreign IPOs
Cathy Chan – Bloomberg
Global banks are raising concerns to Chinese authorities about a plan to tighten rules on overseas stock listings, saying the draft rules are ambiguous and will expand Beijing’s regulatory reach outside the nation’s borders.
/jlne.ws/3AtoN6k

Miscellaneous

Billionaire J. Christopher Reyes buys Lake Geneva Driehaus estate; J. Christopher Reyes, co-chair of Rosemont-based beer-and-food distributor Reyes Holdings, bought the late financier Richard Driehaus’ Lake Geneva estate for $36 million.
Dennis Rodkin – Crain’s Chicago Business
The buyers of the Lake Geneva estate of the late Richard Driehaus are J. Christopher Reyes and Anne Reyes, the Chicago Tribune reports. The $36 million purchase of the 40-acre lakefront estate, which closed earlier this month, was at least $10 million more than the sum of the second- and third-highest prices ever paid for a Lake Geneva estate.
/jlne.ws/3IwOrdk

Strip-Bar Habit Worth $220,000 Hangs Over Swiss Banker on Trial
Hugo Miller – Bloomberg
The former head of a Swiss bank goes on trial Tuesday charged with enriching himself and others through millions of dollars in side deals and illegal expenses including racking up a 201,267 Swiss-franc ($220,000) tab at a string of cabarets, strip clubs and “contact bars.”
/jlne.ws/3rKL8bP

First Rule of ‘Fight Club’: in China, the Police Always Win
Bloomberg News
In revised version of film’s conclusion, authorities triumph; ‘Lord of War’ has also had its original ending altered
David Fincher’s 1999 “Fight Club” is at the center of a social media firestorm in China after a new version of it replaced the original ending with a terse message saying all criminals were apprehended and the authorities triumphed. Tencent Video subscribers mocked the newly abridged and altered ending for distorting the original film’s message and intent. Based on Chuck Palahniuk’s book by the same name, “Fight Club” culminates in the unnamed narrator killing off his alter ego Tyler Durden and setting off a chain of explosions destroying all bank and credit records, resetting the economy. None of that is present in the new Chinese version, which treats the movie’s Project Mayhem undertaking as a thwarted and misguided attempt at criminality.
/jlne.ws/3qYGnMr

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