Hemp Prices Pause as Harvest Continues
Suzanne Cosgrove – John Lothian News
The PanXchange Hemp: Benchmark & Analysis report took an unusual turn this month, calling hemp hurd for animal bedding the most interesting industrial hemp story of August. That may not sound like an exciting development to a casual observer, but it is one segment of the market where the report indicated there is little supply to spare.
In particular, good-quality non-cannabinoid hemp hurd to be used for bedding and building is in demand, commanding prices around the middle of the month’s range. Prices of old-crop true hemp were far lower, up only slightly in August and viewed as competitive with alfalfa prices.
“Animal bedding might not be the most attractive end-use,” the report acknowledges, but demand for it keeps processors working as they develop business plans for other applications of industrial hemp. “Industrial hemp has made considerable strides thus far this year, and markets are taking shape for certain by-products.”
Read more HERE.
Hits & Takes
John Lothian & JLN Staff
Welcome to September 2021. The summer season ends with the Labor Day weekend in the U.S. and people everywhere get back to work as children return to school. Or that was the way it used to be. Who knows today. Maybe you stay at the summer place and have the kids go to school remotely. Or you do the same thing back at home. The world is turned upside down and there are all kinds of new possibilities. I can work from anywhere with an internet connection, a spot for my laptop and a generous supply of coffee.
The American Financial Exchange published a research note on the robustness of the AMERIBOR® Term-30 forward-looking rate in times of market stress. — Mondovisione
The Wall Street Journal has an interesting story with great graphics titled, “How the 9/11 Attacks Remade New York City’s Financial District; After years of still-unfinished construction, lower Manhattan has become more residential and host to a wider range of industries.” — WSJ
On August 31, 45 years ago, in 1976, the big story in the world of futures was about potatoes. In a story republished yesterday by The Lewistown Tribune in Idaho, the headline read, “Andrus opposes potato plan.” The story was about a meeting of the Commodity Futures Trading Commission regarding a proposed Chicago Mercantile Exchange potato contract which would allow delivery of “Russet Burbank potatoes from any western or midwestern growing areas.” The governor of Idaho, Cecil D. Andrus, was concerned the futures contract would destroy the Idaho potato image and enable other states “to ride the coattails of the Idaho potato.” CME Chairman Leo Melamed spoke at the meeting in support of the risk management function of futures and what it would mean to U.S. potato farmers.
There were no new donations to the JLN MarketsWiki Education GoFundMe campaign yesterday.
Later today we will publish the whole interview JLN did with Options Solutions, the start-up advisory firm founded by Bill Brodsky, Michael Brodsky and Steve Sears. Look for it on JohnLothianNews.com.
Also later today, we will publish part one of the interview I did with my former employer, Tom Price, for the Open Outcry Traders History Project.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
Itching to Reinvent Your Career? Now Is the Time; Workers not only have more jobs to choose from, they have more bargaining power with employers when deciding where and how those jobs are done.
Conor Sen – Bloomberg
How much are people reevaluating their careers, and what do they want out of work these days? The answers to those questions could have a profound impact on the labor market recovery. If workers suddenly change their behaviors, such as staying out of the workforce longer or quitting jobs for non-traditional kind of employment, the rebound might look different than we expect.
***** Been there, done that. But there is always another day to try something new again.~JJL
Hot and Hungry, New Orleans Will Be in the Dark for Days
Sergio Chapa and Will Wade – Bloomberg
Still unclear when Entergy can start restoring electricity; ‘Now is really the most dangerous time,’ Governor Edwards says
Hurricane Ida has passed by, but New Orleans remains powerless. The city has been without electricity since Sunday, and there’s no word on when the lights will flicker on. Gasoline is scarce, most grocery stores are closed, tap water is iffy and officials are telling people who fled not to come home.
*****It is going to feel like 106 degrees in New Orleans today, which is miserable with no electricity and air conditioning.~JJL
Forever Changed’: CEOs Are Dooming Business Travel — Maybe for Good
A Bloomberg survey of 45 large companies in the U.S., Europe and Asia shows that 84% plan to spend less on travel post-pandemic.
Alexander Michael Pearson, Taa Parel, William Wilkes – Bloomberg
Business travel as we’ve known it is a thing of the past. From Pfizer Inc., Michelin and LG Electronics Inc. to HSBC Holdings Plc, Hershey Co., Invesco Ltd. and Deutsche Bank AG, businesses around the world are signaling that innovative new communications tools are making many pre-pandemic-era trips history.
***** Not good news for the conference business. Somehow I think Las Vegas will still do OK.~JJL
Tuesday’s Top Three
Our top story Tuesday was SEC Chairman Says Banning Payment for Order Flow Is ‘On the Table’ from Barron’s. Robinhood is in trrrrouble. Second was Former Fed official warns of ‘urgent’ threat of another financial crisis, from MarketWatch, in which Don Kohn, the Fed’s former vice chair for financial supervision, said there are “unusually large risks of the unexpected.” Nobody expects the unexpected. And third was the top story on Monday, The Wall Street Journal’s A Retired Hedge Funder Wants $160 Million for His 22-Acre California Compound.
26,597 pages; 235,699 edits
FTX Acquires the First U.S.-Approved Crypto Derivatives Platform
Vildana Hajric – Bloomberg
Strategy is to offer array of assets in regulated markets; Majority of global crypto volume trades through derivatives
FTX.US has agreed to acquire LedgerX for an undisclosed sum, a move that’s set to expand the crypto exchange’s product offerings to futures and options trading in the U.S. The majority of global crypto volume trades through derivatives, though most of that occurs on venues outside the U.S. But there’s “a deep demand” from both retail traders and institutions for regulated crypto derivatives within the country, said Brett Harrison, president of FTX.US.
ICE to launch Micro MSCI USA and Micro MSCI Europe Index Futures on ICE Futures Singapore; Launch Follows Extension of Partnership with MSCI to Expand ICE MSCI Offering in Asia Pacific; ICE is the most liquid venue to trade MSCI derivatives and offers more than 100 futures contracts
Intercontinental Exchange, Inc.
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, and MSCI Inc. (NYSE:MSCI), a leading provider of mission-critical decision support tools and services for the global investment community, today announced an extension of their existing license agreement to ICE Futures Singapore. As part of this, ICE plans to launch micro sized futures contracts based on the MSCI USA and MSCI Europe Index on ICE’s Singapore-based exchange on October 11, 2021.
China Hedge Funds Pay $300,000 to Beat Wall Street to Best Graduates
Booming hedge fund industry is boosting offers for new joiners; Pay is about triple that of college graduates on Wall Street
When computing major Garen Zhou deferred his studies in the U.S. because of the pandemic, he applied for internships at China’s biggest internet companies. In the end, the Peking University graduate chose Ubiquant, a local hedge fund managing $8 billion of assets which is offering top college leavers like Ph.D.s annual salaries of as much as $300,000. After a year, Zhou became a permanent employee, giving up his enrollment at Johns Hopkins University.
Wall Street Sees Nothing but Good News, Even When It’s Bad; With expectations that interest rates will stay down and government spending will stay up, the stock market has learned to live with the pandemic, even as cases increase.
Matt Phillips – NY Times
Bad news doesn’t seem to bother Wall Street these days. Deaths and hospitalizations related to the coronavirus are soaring, and many businesses have shelved plans to return to the office. Staffing shortages and supply-chain bottlenecks linger, while consumer confidence has fallen.
Energy Traders See Big Money in Carbon-Emissions Markets; Vitol, Glencore and other firms that dominate oil trading are beefing up their carbon-trading desks
Sarah McFarlane – WSJ
Big energy trading houses, long focused on deep, volatile markets such as oil and natural gas, are now bulking up their carbon-trading operations as governments around the world push to expand the market for trading carbon emissions.
Gensler Swims Against Tide in Payment-for-Order-Flow Fight
Benjamin Bain and Robert Schmidt – Bloomberg
Move could increase costs for retail investors, analysts say; Gensler rattles Wall Street by saying ban is ‘on the table’
Banning payment for order flow is “on the table” at the U.S. Securities and Exchange Commission, but pulling it off won’t be fast or easy for Chair Gary Gensler. The SEC chief rattled Wall Street this week when he hinted in an interview with Barron’s that he may be willing to prohibit brokers from getting paid to send customers’ stock orders to trading firms. The practice is deeply ingrained and has been embraced by everyone from Robinhood Markets Inc. to Charles Schwab Corp. It’s also triggered an era of free trades.
Crypto platforms need regulation to survive, says SEC boss; Gary Gensler warns $2tn industry is too big to exist outside of ‘public policy framework’
Gary Silverman and Kiran Stacey – FT
The chair of the US Securities and Exchange Commission is warning that cryptocurrency trading platforms are putting their own survival at risk unless they heed his call to work within the nation’s regulatory framework.
Robinhood says SEC reviewing share sale filing
Online brokerage Robinhood Markets Inc (HOOD.O) said on Wednesday the U.S. Securities and Exchange Commission was reviewing a filing of share sale by a group of its shareholders. Shares of the newly public company had taken a hit in early August after it said early investors may sell nearly 98 million shares, noting that the company will not receive any of the proceeds.
ISDA Responds to FCA on LIBOR Transition and the DTO
On August 25, 2021, ISDA submitted a response to the Financial Conduct Authority’s (FCA) CP21/22 on LIBOR transition and the derivatives trading obligation (DTO). Currently, the classes of derivatives that are subject to the DTO are swaps referencing US dollar LIBOR, sterling LIBOR, EURIBOR and certain credit default swaps. The FCA is modifying the DTO in light of interest rate benchmark reform and the transition from LIBOR to risk-free rates.
Fancy a Four-Day Week? Scotland Is Urged to Expand Trials
Rodney Jefferson – Bloomberg
The Scottish government’s trial of a four-day week for office workers should be expanded across other areas of the economy as part of the nation’s post-Covid recovery, according to a prominent think tank.
Climate Protesters Break Windows at JPMorgan in London
Harriet Habergham – Bloomberg
Eight women used hammers and chisels to break two windows; Protest part of Extinction Rebellion’s two-week campaign
Climate activists broke windows at JPMorgan Chase & Co. offices in central London Wednesday as part of two weeks of protests against organizations that support fossil fuels.
Ida Piles On Climate Threat to U.S. Food Supplies; Coast to coast, from drought to floods, the global food network is increasingly vulnerable to weather disasters that destroy production and disrupt distribution.
Amanda Little – Bloomberg
As drought continues to punish food producers throughout the American West, Hurricane Ida has reminded us that the very opposite problem — raging storms and floods — not only imperils crop production but can devastate global food distribution networks.
Inside Huarong Bailout That Rocked China’s Financial Elite
Rescue shows Beijing won’t let Lehman-like moment upend market; Months-long delay points to waning support for state backstops
The numbers circulating through official Beijing were even worse than feared. This was looking like one of the biggest single money-losers in modern Chinese history. But who, if anyone, would be willing to clean up the mess at China Huarong Asset Management Co., the nation’s teetering “bad bank?”
Seasoned investors pile into the industry behind new currencies; Wealthy individuals see rich potential in the industry underpinning blockchain
Eva Szalay – FT
Some benefits of investing in cryptocurrencies can be quite unexpected. For billionaire financier Mike Novogratz, it was the chance to give a speech about digital art at a prestigious auction house — and settle an old score.
How the 9/11 Attacks Remade New York City’s Financial District; After years of still-unfinished construction, lower Manhattan has become more residential and host to a wider range of industries
Elliot Bentley – WSJ
Known for its soaring skyscrapers that house congregated financial firms, lower Manhattan has transformed since the attacks of Sept. 11, 2001, in ways both visible and unseen.
GameStop Stock’s Possible Return to S&P 500 in Hands of Anonymous Committee; Members of panel have considerable discretion over which companies to include in the most widely watched equity index
Akane Otani – WSJ
The individual-investor darling GameStop Corp. GME 4.32% is now three times as valuable as the smallest S&P 500 stocks, thanks to a sharp run-up in its shares in August. Some traders are betting GameStop could take another leap higher if S&P Dow Jones Indices adds the stock to the S&P 500 when it is rebalanced later this year.
Pfizer Booster Shot Lowered Coronavirus Infection Risk in Study
Jason Gale – Bloomberg
A third shot of the Pfizer Inc.-BioNTech SE Covid vaccine provides added protection against the coronavirus during a delta outbreak, according to early data from Israel, where boosters began rolling out incrementally in mid-July.
Antibody levels are declining in over-60s, official blood-testing data shows amid calls for No10’s advisers to sign off on Covid booster vaccine drive; England’s largest surveillance study found levels dipped 0.2% in two weeks; Pressure is building on No10 to announce a booster programme for over-80s; Several studies already suggest immunity from vaccines wanes over time
Luke Andrews – Daily Mail
Covid antibody levels are already starting to decline among over-80s, official data suggested today. Ninety-two per cent of elderly adults tested positive for the Covid-fighting proteins in mid-August. This was down from a high of 95 per cent in May, according to results of a major blood-testing study.
Most Employers Say Vaccine Mandates Are Possible by End of Year
Jeff Green – Bloomberg
U.S. companies may also add fees to unvaccinated workers; Survey respondents see office returns delayed until 2022
Vaccine mandates are set to get more common in the workplace. A majority of U.S. employers — 52% — are planning or considering requirements for a Covid-19 shot by the end of the year, according to a survey released Wednesday by consultant Willis Towers Watson. That’s more than double the 21% of companies polled that currently have some form of mandate.
Covid Vaccines May Become a Viable Business. That’s a Problem; Demand for booster shots and delta’s infectiousness have made manufacturing shots a good opportunity for the pharmaceutical industry. Where does that leave the rest of the world?
David Fickling – Bloomberg
For most of us, the growing evidence that the efficacy of Covid vaccines is declining over time should be a cause of worry. For the drug companies that have spent billions of dollars developing them, it’s a once-in-a-lifetime opportunity.
Malaysia Examines Need for Booster Shots as Virus Spreads
Yantoultra Ngui – Bloomberg
Panel to give recommendations by month-end: health minister; Priority is to increase vaccine coverage to stem new infections
Malaysia is studying if it’s necessary to give booster Covid-19 vaccine shots, as the country grapples with the fast-spreading delta variant. An expert committee has been set up to assess the need for a third shot and is expected to give its recommendation by month-end, Health Minister Khairy Jamaluddin said at a briefing on Wednesday.
Exchanges, OTC and Clearing
Offset Rings Opening Bell At NYSE As Reservoir Media Goes Public; Reservoir Media represents the copyright and/or master recordings for Migos, 2 Chainz, A Boogie Wit Da Hoodie, and more.
Preezy Brown – Vibe
Migos member Offset hit the Financial District yesterday (Aug. 30) to ring the opening bell at the New York Stock Exchange in celebration of Reservoir Media going public on the NASDAQ. In addition to the “Clout” rapper and his trio, Reservoir Media handles the copyrights and/or master recordings of numerous artists including 2 Chainz and A Boogie Wit Da Hoodie, as well as Tommy Boy Records, home to seminal rap acts like De La Soul.
CME Group and IHS Markit Complete Joint Venture and Launch OSTTRA, a New Post-Trade Services Company
CME Group (NASDAQ: CME), the world’s leading and most diverse derivatives marketplace, and IHS Markit (NYSE: INFO), a world leader in critical information, analytics and solutions, today announced they have launched their joint venture, OSTTRA, a new post-trade services company. OSTTRA, 50/50 owned by CME Group and IHS Markit, is a leading provider of progressive post-trade solutions for the global OTC markets across interest rate, FX, equity and credit asset classes. It incorporates CME Group’s optimization businesses – Traiana, TriOptima, and Reset – and IHS Markit’s MarkitSERV. Headquartered in London, OSTTRA will be led by Co-CEOs Guy Rowcliffe and John Stewart.
MIAX Options Exchange – Rollback Of Certain July 1, 2021 Non-Transaction Fee Changes
The Purge Port fee increases and Complex Top of Market (“cToM”) data fees that were established for July 1 (such fees were announced in the June 30, 2021 Alert, and established pursuant to the following fee filings: cTom Filing, Purge Port Filing, the “July 1 Fee Changes”) will be rolled back and, on a going-forward basis, revert to fee amounts that were in place immediately prior to the July 1 Fee Changes, effective immediately. All other fee changes announced by MIAX Options Exchange for July 1 and thereafter remain unchanged.
ICE to launch micro MSCI index futures
The launch of Micro MSCI USA and Europe Index Futures follows an extension of MSCI and ICE’s partnership to support their expansion into Asia Pacific.
Annabel Smith – The Trade
ICE has set out plans to expand its MSCI index futures offering with the launch of micro MSCI USA and Europe index futures on its Singapore-based exchange in October.
The proposed launch on ICE Futures Singapore builds on the existing partnership between MSCI and ICE which was recently extended to support their expansion into the Asia Pacific region.
American Financial Exchange Publishes Research Note On The Robustness Of AMERIBOR® Term-30
The American Financial Exchange (AFX), an electronic exchange for direct lending and borrowing for American financial institutions, published today a research note on the robustness of the AMERIBOR® Term-30 forward-looking rate in times of market stress.
NGX Highlights Opportunities In Green And Sukuk Bonds
Nigerian Exchange Limited (NGX) continues to drive the development and promotion of retail participation in the Nigerian capital market with its Retail Investor Workshop. On Tuesday, 31 August 2021, NGX hosted a webinar under the series in collaboration with APT Securities and Funds Limited themed, Sukuk and Green Bonds: More Than Just Investing.
Trading Overview in August 2021; Japan Exchange Group released Trading Overview in August 2021.
Cash Equity Market – In August 2021, the daily average trading value for the TSE 1st Section (domestic common stocks) was JPY 2.6772 trillion, In August 2021, the daily average trading value for the ETF market was JPY 206.9 billion.
Derivatives Market- In August 2021, total derivatives trading volume was 22,086,048 contracts, In August 2021, total derivatives trading value was JPY 160 trillion.
Japan Exchange Group: Status Of Acquisition Of Own Shares
Tokyo Financial Exchange Trading Volume In August 2021
The total trading volume of FX Daily Futures contracts (Click 365) was 1,765,929 ( -11.2% MoM / +3.2% YoY ) and its average daily trading volume was 80,269. See the TABLE 1 for the composition of the trading volume.
Boerse Stuttgart Records August Turnover Of Over EUR 7,8 Billion – Equities, Securitised Derivatives And ETPs Show Increase In Trading Volume Compared To August 2020
Based on the order book statistics, Boerse Stuttgart generated turnover of over EUR 7,8 billion in August 2021 – an increase of around 11 per cent compared to the same month of the previous year.
Uncleared Margin Rules, Phase 5: the challenges and how to face them
As one of the responses to the financial crisis of 2008 – 2009, a reform to implement margin requirements for non-centrally cleared derivatives was recommended. In September 2013, the Basel Committee on Banking Supervision (BCBS) and the International Organisation of Securities Commissions (IOSCO) published the global framework for margin requirements for “non-centrally cleared derivatives”. The requirements for the Uncleared Margin Rules (UMR) apply to OTC derivatives that are not cleared through a central counterparty.
Cash market sales statistics for August
A trading volume of EUR 137.6 billion was achieved on Deutsche Börse’s cash markets in August (previous year: EUR 116.9 billion). Of this, Xetra accounted for 106.7 billion euros (previous year: 95.8 billion euros), which means that the average daily Xetra turnover was 4.9 billion euros (previous year: 4.6 billion euros). Turnover at the Frankfurt Stock Exchange was 3.9 billion euros (previous year: 3.7 billion euros) and at the Tradegate Exchange 27 billion euros (previous year: 17.3 billion euros).
Abu Dhabi Securities Exchange (ADX) to Launch Derivatives Market, Leveraging Nasdaq Technology
Nasdaq and ADX sign new market technology agreement; Single stock and index futures will provide investors with hedging tools; Initiative will be supported by addition of CCP clearing capability for Derivatives Contracts
Today, Abu Dhabi Securities Exchange (ADX) announced that it has taken a key step towards launching a derivatives market this year by signing an agreement with Nasdaq (Nasdaq: NDAQ) to deliver marketplace technology solutions, including matching, real-time clearing and settlement technology.
LSEG launches dedicated sustainable finance innovation unit in Singapore
London Stock Exchange Group plc:
London Stock Exchange Group (LSEG) has today launched a dedicated sustainable finance innovation unit in Singapore. Part of its new LSEG Labs network, the unit will be focused on creating sustainable finance capabilities to accelerate innovation and advanced technology across the country’s fintech ecosystem, supported by the Monetary Authority of Singapore (MAS).
— Revised Price Limit Offset Levels for Nikkei Stock Average Futures and TOPIX Index Futures – Effective Trade Date September 1, 2021 through September 17, 2021 — CME
Google Delays Voluntary Return-to-Office Until Jan. 10; Alphabet unit is latest large company to extend work-from-home protocols amid rising Covid-19 infections
Tripp Mickle – WSJ
Google is delaying its planned return to the office for corporate staff until Jan. 10, becoming the latest large company to extend work-from-home protocols amid rising Covid-19 infections and hospitalizations.
Broadridge Expands Global Proxy Sub-Custody Market Services; Expands Direct Market Solutions to cover 50% of global meetings – complementing its 100+ market coverage model, improves market voting deadlines and lowers overall costs to custodians
Broadridge Financial Solutions, Inc.
Broadridge Financial Solutions, Inc. (NYSE:BR) today announced the significant expansion of its Direct Market Solutions (DMS), a custodian focused local market “golden copy” event sourcing and vote execution service extension to Broadridge’s leading Global Proxy solution. The innovation in DMS services is across three areas:
The Big Interview: Jay Moore; Founder and CEO of FX HedgePool, Jay Moore, explains the evolution of the FX swaps market and discusses the benefits of peer-to-peer liquidity for the buy- and sell-side.
Annabel Smith -The Trade
Why has peer-to-peer buy-side liquidity become increasingly popular for market participants?
Fed. Reserve, FDIC & OCC FinTech Due Diligence Guidance for Community Banks
Moorari Shah, Sherwin F. Root and A.J. S. Dhaliwal – National Law Review
On August 27, the Federal Reserve, FDIC, and OCC jointly published guidance on the types of due diligence community banks should engage in when contemplating arrangements with financial technology companies or FinTechs. While the diligence guidance is voluntary, the banking agencies suggest that community banks should conduct due diligence with respect to FinTechs in six key areas: (i) business experience and qualifications, (ii) financial condition, (iii) legal and regulatory compliance, (iv) risk management and controls, (v) information security, and (vi) operational resilience. The guidance then provides subcategories for due diligence within each category, and provides relevant considerations for the bank for each subcategory, and potential sources of information. The subcategories are as follows:
Expired driver’s licenses open lanes for cybercriminals, text and email scams
Jenni Bergal – USA Today
Driver’s license phishing scams designed to steal people’s identities have been popping up across the U.S., according to state motor vehicle agencies. Fraudsters send out texts or emails falsely warning that the target’s license needs to be updated, is missing information or is expiring. If the person clicks the link, it typically opens a Google Forms spreadsheet requesting personal information such as a Social Security number and date of birth.
How Cybersecurity Frameworks Can Protect Your Organization (Even in the Event of a Breach)
Hyperproof team – Security Boulevard
Today, many states are doing more to hold organizations accountable when they fail to protect their customers’ data. Companies must now safeguard a broader range of data than ever before, and in many states, they face a shortened breach notification timeframe. These stiffening privacy regulations create all sorts of compliance pitfalls for businesses trying to avoid regulatory infractions and punitive damages.
Threats Grow as Digital Wallets Gain Popularity
Nathan Eddy – Security Boulevard
The growing popularity of digital wallets such as Google Pay, Samsung Pay and Apple Pay is making them a bigger target for malicious actors, according to a report from security analytics software specialist Cognyte. The study, which collected and analyzed threat actors’ conversations about digital wallets from 2016 through 2020, found the number of threat actors’ interactions around the topic almost doubled from 2017 to 2018. By 2019, this number grew by 456%, reaching 31,878 interactions and by 2020 it grew by another 292%, reaching 96,363 interactions.
Red Sentry Launches Automated, Continuous Cybersecurity Penetration Test
Red Sentry – PR Newswire
While most businesses run pentests primarily on their external assets, Red Sentry can also perform vulnerability scans and pentests on cloud environments such as Amazon Web Services (AWS), Google Cloud Platform (GCP), and Microsoft Azure. This is becoming increasingly important as more businesses rely on the cloud to host their data. In addition, Red Sentry automatically identifies and tracks all of an organization’s online assets via its attack surface analysis platform. Red Sentry provides continuous pentests on a subscription basis as Software as a Service (SaaS), and the company offers manual pentests as well.
Doge NFT Rides Into Fractional Ownership With $DOG Tokens
Joanna Ossinger – Bloomberg
PleasrDAO splits NFT of original Doge meme purchased in June; It’s ‘a shining example of this odd new world,’ PleasrDAO says
Fans of the original Doge meme that sold as a non-fungible token for about $4 million in June will have their chance to own a piece of the image that’s best known as the face of Dogecoin.
3 reasons why a Bitcoin ETF approval will be a game changer for BTC price
Marcel Pechman – Cointelegraph
Some financial experts believe that the price of cryptocurrencies is solely driven by investors’ speculation, and in the past few years, detractors have suggested that fixed income instruments like Treasury bills have no relation to do with digital assets. This point of view is fairly accurate because at this time, most investors from the asset class are not allowed to invest in Bitcoin (BTC) and altcoins.
Bitcoin is a Limited Supply of Nothing
The Reformed Broker
Join Downtown Josh Brown and Michael Batnick for another round of What Are Your Thoughts? On this week’s episode, Josh and Michael discuss the biggest topics in investing and finance, including:
EmiSwap Launches On KuCoin Blockchain, Issues Like Low Performance And Excessive Costs To Get Resolved
EmiSwap (https://emiswap.com), the first, community-governed decentralized exchange (DEX) to provide high rewards for liquidity providers (LPs), which began began its journey from Ethereum, today launched on the Kucoin blockchain, allowing the gamified and decentralized automated market maker exchange to address issues like low performance and excessive costs.
Fake Banksy NFT sells for $340K — then returned for full refund
Will Feuer – NY Post
A British collector was duped into paying nearly $340,000 worth of cryptocurrency for a non-fungible token that he thought was created by the world-famous artist Banksy — but the scammer later returned the money. The NFT in question, called “Great Redistribution of the Climate Change Disaster,” features a CryptoPunk-style pixelized portrait of a person smoking in front of industrial smokestacks.
Crypto platforms need regulation to survive, says SEC boss
Gary Silverman and Kiran Stacey – FT
The chair of the US Securities and Exchange Commission is warning that cryptocurrency trading platforms are putting their own survival at risk unless they heed his call to work within the nation’s regulatory framework. Gary Gensler told the Financial Times that while he remained “technology neutral”, crypto assets were no different than any others when it came to such public policy imperatives as investor protection, guarding against illicit activity and maintaining financial stability.
Crypto inadvisable for use as legal tender, IMF warns
Teuta Franjkovic – Coin Rivet
The International Monetary Fund (IMF) has warned that cryptocurrencies such as Ether and Bitcoin are privately issued assets riddled with substantial risks. The global finance adviser also said making cryptocurrencies equivalent to a national currency was an “inadvisable shortcut”.
Biden looking at climate change risks to financial markets
Josh Boak – AP
In a season of daunting wildfires and flooding, the Biden administration is taking an initial step to assess how climate change could harm financial markets — planning to launch on Tuesday a 75-day comment period on how the impacts could reshape the insurance sector.
Market Maker Virtu Pushes Back on SEC Chairman’s Claims
Avi Salzman – Barron’s
A market maker that executes trades for customers of Robinhood Markets and other retail brokers is pushing back against critical comments by SEC Chairman Gary Gensler on how those trades take place.
Hochul names Adrienne Harris as state’s top financial watchdog
Gov. Kathy Hochul nominated Adrienne Harris, a former Obama administration official, to lead New York’s top financial regulator, filling a key post in the wake of Andrew Cuomo’s resignation.
U.S. Treasury says China private equity’s Magnachip purchase poses security risks
The U.S. Treasury Department said the acquisition of Magnachip Semiconductor Corp by a Chinese private equity firm posed “risks to national security”, in another hurdle for Chinese companies trying to invest abroad in critical tech industries.
America Is Spending a Fortune to Help Rich People Retire in Luxury; How federal programs conceived for ordinary families became a piggy bank for affluent boomers.
Mike Mechanic – Mother Jones
For many working Americans, a Roth IRA is a useful, if not particularly interesting, way to save money for retirement. For tech billionaire Peter Thiel, it was a way to accumulate more than $5 billion. The nonprofit journalism shop ProPublica ran an exposé in June revealing how a small number of extremely wealthy folks had ended up with Roths—federally subsidized retirement accounts meant for middle-class savers—worth tens to hundreds of millions of dollars and up. Thiel did so, the article noted, by “stuffing” his Roth IRA with wildly undervalued “founders shares” of pre-IPO startups—potentially an illegal tactic—and then watching as their values rose exponentially, and completely tax-free.
Gov. Kathy Hochul Picks Adrienne Harris to Lead New York’s Top Financial Regulator; Obama administration veteran was nominated to lead Department of Financial Services, which oversees insurance companies and state-chartered banks
Jimmy Vielkind – WSJ
New York Gov. Kathy Hochul has tapped an Obama administration veteran to be the state’s top financial regulator, officials said Tuesday. Adrienne Harris was nominated to lead the New York State Department of Financial Services, which oversees insurance companies and state-chartered banks. Ms. Hochul, a Democrat, said the agency’s focus would be consumer protection and ensuring an equitable recovery from the Covid-19 pandemic.
EU Mulls Spending 300 Million Euros to Resettle 30,000 Afghans
Alberto Nardelli – Bloomberg
The bloc is looking at ways to avoid a migration crisis; The EU is divided on whether to accept refugees into the bloc
The European Union has floated a plan to spend 300 million euros ($355 million) to resettle about 30,000 Afghan refugees inside the bloc in a bid to avert a migration crisis following the withdrawal of U.S. troops from Afghanistan.
Norway grapples with rising political influence of $1.4tn oil fund; Questions over mandate of the world’s largest sovereign wealth fund spice up national elections
Richard Milne – FT
Norway’s $1.4tn oil fund tests the logic and limits of some of the hype around responsible investing. Can an investor funded entirely from oil and gas revenues take a credible stance against climate change? Can a fund ultimately controlled by Norway’s parliament and government make decisions on what to invest in — and, more crucially, what not to — and not be thought of as acting politically?
CFTC Staff Provides Temporary No Action Relief from Certain Financial Reporting Requirements to Bank Swap Dealers
The Commodity Futures Trading Commission’s Market Participants Division today issued a time-limited no-action letter concerning capital and financial reporting obligations for swap dealers (SDs) subject to capital requirements of a prudential regulator (Bank SDs) under the CFTC’s SD financial reporting rules.
Ripple repeat demand for SEC to reveal employee crypto investments
Sam Cooling – CoinRivet
Ripple lawyers have filed a motion to compel the SEC to produce documents showing whether its employees were permitted to trade XRP and other digital assets. The filing repeats a question the Securities Exchange Commission (SEC) has been asked on several occasions surrounding whether or not officials had any interests in digital assets leading up to classifying XRP as an unregistered securities product.
CFTC Staff Amends Existing Brexit-Related Relief to Provide Market Certainty
The Commodity Futures Trading Commission’s Division of Market Oversight (DMO) announced today that it is amending previously granted temporary no-action relief in connection with the withdrawal of the United Kingdom (UK) from the European Union (EU), known as Brexit.
Crackdown By Regulators Aims To Protect Investors Entering A More Digital World
A US Government crackdown on unregulated digital exchanges and stablecoins has long been on the cards, according to broker dealer and pioneering secondary market ATS operator Rialto Markets. But rather than trying to kill off this emerging sector, Rialto Markets’ Head of Market Structure Lee E Saba expects and welcomes an official drive to create a regulated investment environment:
U.S. Department of the Treasury Launches New Effort on Climate-Related Financial Risks in the Insurance Sector
U.S. Department of the Treasury
Today, the U.S. Department of the Treasury has announced that the Federal Insurance Office (FIO), in response to President Biden’s May 2021 executive order on climate change, is requesting information and soliciting public comment on the insurance sector and climate-related financial risks.
SEC Obtains Emergency Relief, Charges Couple Who Operated $18 Million Ponzi scheme
The Securities and Exchange Commission today announced that it filed an emergency action and obtained a temporary restraining order and an asset freeze to stop an alleged Ponzi scheme perpetrated by Shakopee, Minnesota residents Jason Dodd Bullard and Angela Romero-Bullard and the entity they control, Bullard Enterprises LLC. The SEC also named four relief defendants in the action – entities controlled by Bullard and Romero-Bullard that received investor funds from the alleged scheme.
SEC Monitoring Impact of Hurricane Ida on Capital Markets
SEC Chair Gary Gensler has directed the staff to carefully monitor developments as a result of Hurricane Ida making landfall on Aug. 29, 2021. The safety of local residents is our highest priority. We invite inquiries from any person with obligations under the federal securities laws that may be affected by Hurricane Ida. The staff will evaluate the appropriateness of providing regulatory relief for those affected by the storm.
Investors Searching for Yield Pump Up Sales of Risky Company Debt; Issuance of new collateralized loan obligations set a 10-year record in August
Sebastian Pellejero – WSJ
Sales of securities backed by bundles of risky corporate loans set a new monthly record in August, powered by improving corporate earnings and investor demand for relatively higher yields. Issuance of new collateralized loan obligations, which buy up corporate loans with junk credit ratings and package them into securities, were more than $18.7 billion this month, as of Thursday, according to S&P Global Market Intelligence’s LCD. That is the highest monthly total in data going back to January 2011.
We confirm periodic review of pension transfers redress guidance
Finalised Guidance 17/9 (FG17/9) sets out how firms should calculate redress for unsuitable defined benefit (DB) pension transfers. When we published FG17/9 in 2017, we committed in the accompanying Feedback Statement to review the guidance at least every 4 years.
Alberta And Saskatchewan Securities Regulators Adopt New Small Business Financing Prospectus Exemption
The Alberta Securities Commission (ASC) and the Financial and Consumer Affairs Authority of Saskatchewan (FCAA) today adopted a new prospectus exemption designed to facilitate greater access to capital for Alberta and Saskatchewan businesses.
Federal and state financial regulatory agencies issue interagency statement on supervisory practices regarding financial institutions affected by California Wildfires
Board of Governors of the Federal Reserve System, Conference of State Bank Supervisors, Federal Deposit Insurance, Corporation, National Credit Union Administration, Office of the Comptroller of the Currency
The Office of the Comptroller of the Currency, the Federal Reserve Board, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the state regulators, collectively the agencies, recognize the serious impact of California wildfires on the customers and operations of many financial institutions and will provide appropriate regulatory assistance to affected institutions subject to their supervision. The agencies encourage institutions operating in the affected areas to meet the financial services needs of their communities.
New Zealand Guidelines For Financial Services Businesses And Staff Under Covid-19 Alert Level 3leading
Latest details on doing business at Alert Level 3 can be found at the COVID-19 Government website.
BCSC panel dismisses allegations that B.C. man and company committed market manipulation
A panel of the British Columbia Securities Commission (BCSC) has dismissed allegations that a B.C. man and his company committed market manipulation. The panel found there was insufficient evidence to prove that Forum National Investments Ltd. or its Chief Executive Officer, Daniel Clozza, committed misconduct in 2012 as alleged by the BCSC in an Amended Notice of Hearing. The notice had alleged that Clozza hired a stock promoter to assist him in conducting a market manipulation of Forum shares and had directed the company to issue false or misleading press releases.
‘Don’t believe the hype’: Common tactics to get you to invest in shares
Investing in shares can be a rewarding experience and can help you grow your wealth. However, it involves risk and there are certain people out there employing new and ever changing techniques to get you to part with your money.
ESMA sees risk of market corrections in uneven recovery
The European Securities and Markets Authority (ESMA), the EU securities markets regulator, today publishes its second Trends, Risks and Vulnerabilities (TRV) Report of 2021. The Report highlights the continued rise in valuations across asset classes in an environment of economic recovery and low interest rates, the increased risk taking of investors and the materialisation of event risks such as GameStop, Archegos and Greensill.
ESMA announces hearing on CCP Recovery Regime Consultations
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, will hold an open hearing on its consultation papers on the recovery regime under CCPRRR.
Investing and Trading
The ECB Should Take a Page From the Fed’s Playbook; Separate attempts to taper quantitative easing from eventually hiking official interest rates is a brilliant confidence trick.
Marcus Ashworth – Bloomberg
Although European Central Bank President Christine Lagarde did not present at this year’s virtual Jackson Hole symposium, the Federal Reserve’s annual central bank policy forum, she was surely paying close attention.
Social Security Costs Expected to Exceed Total Income in 2021 as Covid-19 Takes Financial Toll; Trustees say hit from pandemic was less than feared; trust fund is now expected to be depleted in 2034 unless Congress shores up program
Kate Davidson – WSJ
The severe economic downturn caused by the Covid-19 pandemic last year weighed on the financial health of Social Security, but not nearly as much as many forecasters originally feared, according to new projections of the program’s finances.
Social Security is projected to be insolvent a year earlier than previously forecast.
Alan Rappeport and Margot Sanger-Katz – NY Times
The financial outlook for Social Security is eroding more quickly than previously expected, as the coronavirus pandemic has drained government revenues and put additional strain on one of the nation’s most important social safety net programs. The overall finances for Medicare, however, are expected to hold steady, though the health program is still forecast to face financial pressure in the coming years.
Preliminary Annual Report on U.S. Holdings of Foreign Securities at Year-End 2020
U.S. Department of Treasury
Preliminary data from an annual survey of U.S. portfolio holdings of foreign securities at year-end 2020 were released today and posted on the Treasury web site at (https://home.treasury.gov/data/treasury-international-capital-tic-system/tic-forms-instructions/us-claims-on-foreigners-from-holdings-of-foreign-securities). The final survey report, which will include additional detail as well as possible revisions to the data, will be released on October 29, 2021.
AT&T Pushes 5G Upgrades to Help Business Customers Cut Emissions; Faster wireless and Internet of Things will help U.S. companies slash 1 gigaton of emissions by 2035, AT&T says
By Dieter Holger and Mauro Orru – WSJ
AT&T Inc. is pushing U.S. businesses to adopt faster 5G wireless technology, a move the telecommunications company says will help its customers slash one gigaton of greenhouse-gas emissions by 2035.
Debt ceiling fight pushes money market funds to brink; US political stand-off piles pressure on stretched short-term government bond supply
Kate Duguid – FT
The supply of the safest US government bonds has been cut this month after federal spending limits were reinstated, driving prices higher and reigniting problems for the money market fund industry — which has already been bailed out by the Federal Reserve once this year.
Aluminium prices hit decade high as Beijing warns against speculation; Production cutbacks in China in bid to reduce pollution push up global costs for the metal
Henry Sanderson – FT
Aluminium prices hit their highest levels in 10 years on Tuesday as concerns grow about shortages in China, the world’s biggest producer. The metal, which is used in cans, cars and construction, has risen by 50 per cent over the past year, adding further upward pressure on prices as the global economy recovers from the Covid-19 pandemic.
Environmental, Social and Corporate Governance
Carbon Offsets Are Next Big Bet for $3.2 Billion Tribeca Fund
Annie Lee – Bloomberg
Tribeca has bought $100m of nature-based carbon credits; Hedge fund sees ‘material upside’ to prices in Asia Pacific
One hedge fund in Asia is betting big on the growing interest in carbon offsets to protect forests, as industries and policy makers start to make efforts to cut emissions.
Regulators Intensify ESG Scrutiny as Greenwashing Explodes; Pressure is increasing on fund managers to show they’re being truthful with customers about what they’re selling.
Tim Quinson – Bloomberg
Pressure is increasing on managers of ESG-labeled investment funds to show they’re being truthful with customers about what they’re selling.
Cathie Wood’s New ETF Shuts Out Banking, Fossil Fuels and Vice
Claire Ballentine – Bloomberg
Ark Investment Management files to launch Transparency ETF; “This is kind of Ark’s version of ESG”: BI analyst Balchunas
Cathie Wood is getting ready to debut a new exchange-traded fund focused on transparency. Ark Investment Management’s Transparency ETF will closely follow an index that excludes industries including alcohol, banking, gambling and oil and gas, Wood’s company said in a filing on Tuesday. The top holdings in the 100-company gauge are largely tech and consumer firms such as Salesforce.com Inc., Microsoft Corp., Apple Inc., Nike Inc. and Chipotle Mexican Grill Inc. An old Ark favorite, Elon Musk’s Tesla Inc., also makes the cut.
Entergy’s Push to Restore Power in Louisiana Is Slowed by Downed Lines; The utility said on Monday that Hurricane Ida had put 216 substations and more than 2,000 miles of transmission lines out of service.
Ivan Penn and Peter Eavis – NY Times
Two days after Hurricane Ida arrived in Southern Louisiana, hundreds of thousands of homes and businesses remained without power and many could stay that way for weeks as crews work to restore downed power lines belonging to Entergy, the largest utility in the state.
Louisiana power outages caused by Hurricane Ida could persist for weeks; Lack of electricity forces hospitals burdened by Covid surge to run on generators
Justin Jacobs – FT
More than 1m people in Louisiana were preparing for a third sweltering day without electricity after utilities struggled to reconnect power lines knocked down by Hurricane Ida, with residents warned that the outages could last for weeks.
Finland’s forests fire up debate over EU’s strategy for going green; Disagreement over whether woodland should be viewed as carbon sink or used to replace fossil fuels
Richard Milne – FT
Donald Trump was so impressed by Finland’s forestry management that the former US president famously claimed that the Nordic nation had all but eliminated forest fires due to “raking and cleaning”.
Morgan Stanley raises pay for institutional securities analysts
Morgan Stanley raised pay for starting analysts in its institutional securities division, making it the latest bank to increase compensation amid high demand for the entry-level workers. The move raises pay for all starting analysts to $110,000 across sales and trading, research, investment banking and global capital markets divisions, according to a source familiar with the announcement.
Cowen Bolsters Alternative Strategies Global Advisory Team With Four Senior Hires – Cowen To Grow Global Market Leading Business In Event-Driven Investing And Catalyst-Driven Situations
Cowen (NASDAQ:COWN) (“Cowen” or the “Company”) has expanded its Global Alternative Equity Strategies team with four senior hires, strengthening its plans to grow a global market-leading advisory business in event-driven investing and catalyst-driven situations.
MUFG appoints EMEA and Asia head of flow FX sales; Former Bank of America Merrill Lynch veteran and FX sales expert takes on senior role at MUFG after five years with the investment bank.
Annabel Smith – The Trade
Japan’s MUFG has promoted one of its senior executives as head of flow FX sales in Europe and Asia within its global markets business. Stephane Alex takes on the role in London after five years with the investment bank, originally joining MUFG in 2016 as head of global customer marketing.
Poland Risks Inflation ‘Catastrophe,’ Ex-Central Bank Boss Warns
Dorota Bartyzel and Maciej Onoszko – Bloomberg
A former head of Poland’s central bank slammed what he called “economic illiteracy” over the country’s handling of inflation after it hit a two-decade high.
India’s Economy Is Healing but Battered by Covid-19 Waves; GDP grew 20.1% in latest quarter from a year earlier, when nationwide lockdown led to deep recession
Rajesh Roy – WSJ
India’s economy is growing at a record pace but still digging out from one of the deepest recessions to hit any major economy during the pandemic. The country’s gross domestic product grew 20.1% in the three months ended June, a period when India suffered through one of the world’s worst Covid-19 surges of the pandemic. The double-digit growth reflects a comparison with a year earlier when the economy contracted by about 24%, the country’s sharpest decline on record.
Covid-19 Has China’s Gambling Hub on a Long Losing Streak; Casinos in Macau, the world’s biggest gambling market by revenue, have been a key revenue source for U.S.-based operators
Katherine Sayre and Elaine Yu – WSJ
Business remains muted in the once-bustling casinos of Macau more than a year and a half into the Covid-19 pandemic, while gambling operators wait for tourists to return en masse to the Chinese city.
Europe’s Banks Get a Cash Boost From ECB Credit Moves; Region’s lenders are booking higher revenue from a central-bank program to support the economy
Patricia Kowsmann – WSJ
The European Central Bank wants to make sure credit is flowing into Europe’s economy to support its recovery as the pandemic drags on. Banks are cashing in.
South Korea gives green light to sale of China-listed ETFs; Move paves the way for implementation of cross-border ETF link between the two countries
Ysrael Dumasig – FT
South Korea’s securities regulator has amended rules to allow domestic fund managers to offer Shanghai-listed exchange traded funds, paving the way for the implementation of the upcoming cross-border ETF link between the two countries.
Americans Are Stocking Up on Toilet Paper Again; P&G has increased production, and some retailers say orders are being limited as demand surges
Jaewon Kang and Sharon Terlep – WSJ
Americans are back to buying up toilet paper. Procter & Gamble Co., the biggest U.S. manufacturer of toilet paper and paper towels, said it is ramping up production as demand increases. The moves come as several retailers said P&G PG -0.38% is limiting shipments of paper products to stores.
She’s the Investor Guru for Online Creators; Li Jin, 31, began backing creators years ago. She has raised her own fund to invest in influencer-related start-ups.
Taylor Lorenz – WSJ
Cody Ko, a YouTube star with 5.7 million subscribers, found himself in a pickle in May. Two different start-ups wanted to give him stock, and he was concerned that they were potentially competitive deals. So Mr. Ko called someone he trusted for advice: Li Jin.