GMEX launches interoperable trading and post-trade hub bridging access between traditional and digital asset markets

Nov 17, 2021

First Read

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

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Hits & Takes
John Lothian & JLN Staff

Cryptocurrency juggernaut FTX has signed Major League Baseball phenom Shohei Ohtani to be a global ambassador with a deal that gives the two-way baseball player compensation in equity and cryptocurrencies. This is a brilliant marketing move by FTX, which continues to create connections between sports, gaming and crypto. — FTX

After news of Jennifer Nayar leaving her role at Vela/Exegy, Exegy issued a press release naming David (“Dave”) Foster as chief financial officer and naming former CFO Krista Steward as chief integration officer, the role that Nayar held after having served as Vela’s CEO before the Exegy merger. — Exegy

Doug Bry is running a petition drive to be added to this year’s ballot as an at-large CPO/CTA representative on the NFA Board of Directors. CTA/CPO member firms can send the NFA an email supporting Bry to election2022@nfa.futures.org from the executive representative to the NFA with the member firm name attached. The deadline is December 2, so please send your petitions in soon.

The New York Times wine critic (A job I wish I had) has a suggestion of 12 wines to serve for Thanksgiving and beyond. — NY Times

There were no new donations to the JLN MarketsWiki Education GoFundMe campaign yesterday.

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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FIA Expo 2021 Video: Tom Lazenga of TNS Talks Tech
JohnLothianNews.com

Tom Lazenga is global head of sales at TNS, or Transaction Network Services, a fintech firm that provides global real-time data communication networks to industry participants. John Lothian News interviewed him at FIA Expo about the firm’s technology offerings and its plans for the future.

Watch the video »

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The History of Financial Futures: Lee Oliver’s Journey Back to His Beginnings, Part 2
JohnLothianNews.com

The most recent chapter of Lee Oliver’s career took him back into the world of banking and FX trading.

In the second of a two-part video interview with John Lothian, Oliver talked about his transition from a busy career as a freelance writer for Euromoney to a job writing and editing for Cititbank’s wire service.

Oliver was part of a start-up newswire for the bank, serving as content provider and editor for a newswire that ran at the bottom of Citibank’s relaunched trading platform — content that had previously been limited to online chats and other tidbits delivered in an unstructured and unedited format.

Watch the video »

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Goldman’s Solomon Says Market Greed Is Now Outpacing Fear
Francine Lacqua and Denise Wee – Bloomberg
Dramatic change is needed in climate transition, Solomon says; China will continue to support financial opening, CEO says
Goldman Sachs Group Inc. Chief Executive Officer David Solomon said that markets could face a rocky time ahead as the global economy seeks to emerge from the abrupt impact of the pandemic.
/bloom.bg/3Dp314A

***** I disagree. Fear is just reflected differently, at higher prices.~JJL

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World’s Finance Centers, Small Businesses Face a Tough Future; Flexible hours for office staff in cities around the world are leaving retail shops and services struggling as subsidies end.
Adam Majendie and Libby Cherry – Bloomberg
Flexible office hours hit businesses that rely on foot traffic; Many are closing down even as companies slowly reopen
In the world’s financial centers, Thursday is the new Friday. As ranks of office workers begin to return after months of lockdowns and working from home, the new pattern of commuting is imperiling thousands of small businesses in central business districts that relied on a steady flow of customers from Monday to Friday to cover expensive downtown rents and turn a profit.
/bloom.bg/3wTtFjB

****** Try to find a place to have lunch. Good luck.~JJL

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MLB Superstar Shohei Ohtani Joins FTX as Global Ambassador Through Long-Term Partnership; Ohtani will serve as a global ambassador for the FTX brand; FTX to commit to annual charitable contributions on behalf of Ohtani
FTX
TX Trading Ltd. (“FTX.COM”) and West Realm Shires Services Inc. (“FTX US”), the owners and operators of FTX.COM and FTX US respectively (collectively “FTX”), today announced a long-term partnership with global icon and history-making MLB Superstar Shohei Ohtani. In addition to being an FTX global ambassador, Mr. Ohtani will receive all of his compensation in equity and cryptocurrencies, illustrating his strong belief in both FTX and the crypto industry.
/prn.to/3oFpPGS

***** Another brilliant marketing move by FTX. ~JJL

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Tuesday’s Top Three
Our top story Tuesday was Institutional Investor’s Why a California Bartender Won’t Stop Trolling Citadel’s Ken Griffin (subtitle: The GameStop saga brought retail investors into a larger debate on how trades are executed — from payment for order flow to latency arbitrage.) Second was Remote Career Development: Kevin Davis Of First Workings On How To Advance and Enhance Your Career When You Are Working Remotely, from Authority Magazine via Medium. Third was Cryptocurrencies: how regulators lost control, a video from The Financial Times.

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MarketsWiki Stats
26,650 pages; 236,264 edits
MarketsWiki Statistics

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Lead Stories

GMEX launches interoperable trading and post-trade hub bridging access between traditional and digital asset markets; GMEX MultiHub facilitates collaboration across major institutions, regulatory regimes and start-ups as a ‘multi-asset network of networks’ powered by Amazon Web Services (AWS)
GMEX via Hedgeweek
GMEX MultiHub Limited (GMEX), a new business unit of the GMEX Group, is pleased to announce the launch of Digital MultiHub (MultiHub). MultiHub is a global cloud-enabled trading and post-trade digital market infrastructure platform which facilitates 3rd party trading and post-trade services across traditional and digital asset markets. Delivered through a Platform-as-a-Service, microservices distribution model, MultiHub enables capital markets participants to gain simple access to regulated digital assets and market infrastructure.
/bit.ly/3DrveYs

Eurex and Korea Exchange expand around-the-clock ecosystem for KOSPI derivatives
Eurex
Eurex is the only after-hours trading venue for KOSPI derivatives; Joint link will be extended with KOSPI 200 Weekly Options; Launch scheduled for first quarter of 2022
Eurex and the Korea Exchange KRX will expand their tradable product range with Weekly Options on the Korean benchmark index KOSPI 200. With weekly expirations on one of the world’s most heavily traded index options contracts, the two exchanges are expanding their around-the-clock ecosystem for KOSPI derivatives. Thereby, both exchanges emphasize once again their decade-long commitment to connecting markets globally.
/bit.ly/3qI8joc

MIAX Reports Record SPIKES Futures Trading on MGEX in October 2021, New Daily Record Volume and Dissemination of New VSPIKES Index; October 2021 Average Daily Volume of 11,952 contracts, up 59.3% over September 2021; MIAX Begins Disseminating New VSPIKESTM Index Measuring Volatility of Volatility
MIAX
MIAX®, creator and operator of high performance securities exchanges, products and services, today announced average daily volume (ADV) for SPIKES® Futures in October 2021 reached 11,952 contracts, a new monthly record and representing a 59.3%
increase over the 7,502 ADV in September 2021. In addition, SPIKES Futures volume on October 22, 2021 totaled a new daily record of 22,872 contracts.
/bit.ly/3pQLMlL

U.S. to Sell $56 Million in Cryptocurrency Seized in BitConnect Fraud Scheme; Seizure is largest single recovery from a cryptocurrency fraud in the U.S., Justice Department says
David Smagalla – WSJ
A judge agreed to a request from U.S. authorities to liquidate roughly $56 million in proceeds seized from a U.S. promoter of offshore company BitConnect, which allegedly conducted one of the biggest scams ever involving cryptocurrencies. The seizure was the largest single recovery from a cryptocurrency fraud in the U.S. to date, according to the Justice Department.
/on.wsj.com/30wScyy

Crypto’s Energy Guzzling Sparks an Alternative That Merely Sips; A technology called proof of stake claims to cut power consumption by 99.95%, but opponents say it’s less safe than today’s systems.
Olga Kharif, Will Mathis, Josh Saul – Bloomberg
In the past five years, the price of a Bitcoin has rocketed from about $1,000 to more than $60,000. That’s great news for newly minted millionaires and billionaires, but it’s a bummer for the environment. The electricity needed to “mine” the coins—effectively deploying vast fleets of computers to solve complex problems—has increased tenfold over the same period, to almost as much as the entire country of Argentina uses.
/bloom.bg/3CtUlse

Exegy Announces Leadership Additions and Changes as Integration Effort Matures
Exegy
The merger of Exegy Incorporated and Vela Trading Systems, financially backed by Marlin Equity Partners and announced in May, has reached a key point in the combination of the companies. With the development of the “new” Exegy advancing, the company announced today additions to its Integration Management team including the appointment of David (“Dave”) Foster to the leadership team as Chief Financial Officer.
/bit.ly/320t0kQ

Bitcoin Futures ETF Frenzy Is Fading Fast as Another Fund Debuts
Katie Greifeld – Bloomberg
A third U.S. Bitcoin futures exchange-traded fund entered the market — just as demand has dropped off. The VanEck Bitcoin Strategy ETF (ticker XBTF) launched Tuesday, roughly one month after the ProShares Bitcoin Strategy fund (BITO) became the first of its kind to start trading and debuted to record-setting demand.
/yhoo.it/3DoRbr8

Metaverse Is a Multitrillion-Dollar Opportunity, Epic CEO Says
Sohee Kim – Bloomberg
Tim Sweeney is building Fortnite into much more than a game; First platform to reach billion users will be in driver’s seat
Epic Games Inc. Chief Executive Officer Tim Sweeney may be the most enthusiastic supporter of the metaverse after Mark Zuckerberg, who renamed his entire company Meta Platforms Inc.
/bloom.bg/3wSJLd8

Goldman CEO Calls China, Hong Kong Covid-19 Policies a ‘Headwind for Global Talent’; David Solomon’s comments echo calls from the expatriate business community to ease border restrictions
Yifan Wang – WSJ
Goldman Sachs Group Inc. Chief Executive David Solomon said mainland China and Hong Kong’s strict border controls are creating staffing challenges, as the region’s tight quarantine regime wears on foreign workers and businesses. “Certainly, being restricted in terms of leaving or coming back, the family pressure, etc., that’s not a great dynamic for talent,” Mr. Solomon said Wednesday. “That’s certainly a headwind for global talent in that part of the world, right at this moment.”
/on.wsj.com/3clnpHL

Staples Center in L.A. to Be Renamed Crypto.com Arena; The deal to rename the home of the Lakers and LeBron James is the latest attempt by the upstart cryptocurrency industry to gain mainstream recognition
Anna Hirtenstein – WSJ
The Staples Center, home to LeBron James and the Los Angeles Lakers, will be renamed the Crypto.com Arena after a Singapore-based cryptocurrency brokerage paid to sponsor the iconic sports and concert venue.
/on.wsj.com/30v3qUy

Bitcoin set to become an institutional trading market with increasing allocations to digital assets, study finds; Institutions to increase target asset allocations to crypto and digital assets longer term, study finds, despite regulatory concerns and there being no ‘ how-to-guide’ on how to trade these assets.
Anita Hawser – The Trade
Institutional investors and wealth managers have increased their allocations to digital assets in the past year with almost 40% believing their organisation’s long-term target allocation to these assets should be between 5% and 10%.
/bit.ly/32audpX

Coronavirus

Covid Outbreak in Party Town Shows How the Pandemic Could End
Jason Gale – Bloomberg
Cape Cod outbreak showed infection bolstered vaccine immunity; Repeat exposure may help turn Covid-19 into a common cold
It was meant to be a summer vacation to celebrate. Thousands of revelers flocked to Provincetown, Massachusetts, for the July Fourth holiday, fully immunized against Covid-19 and ready to enjoy new freedoms, including socializing without face masks.
/bloom.bg/3nod6Jl

Germany Pushes Work From Home to Counter Europe’s Covid Surge
Iain Rogers and Patrick Donahue – Bloomberg
Lawmakers putting final touches to law to be approved Thursday; Ireland, Italy are latest countries to tighten restrictions
Germany’s likely next ruling coalition is pushing ahead with tougher measures to tackle record increases in coronavirus cases, including requiring companies to let employees work from home where possible.
/bloom.bg/3CtSQKC

Biden Administration to Buy 10 Million Courses of Pfizer Covid Pill
Josh Wingrove – Bloomberg
U.S. also has bought 3.1 million courses of Merck’s treatment; Fauci warns that new treatments aren’t substitute for vaccine
The Biden administration plans to buy enough of Pfizer Inc.’s new Covid-19 pill to treat 10 million patients, people familiar with the matter say.
/bloom.bg/3x1ToX1

Exchanges, OTC and Clearing

Cboe at ‘Critical Inflection Point’
MarketsMedia
Ed Tilly, chairman, president and chief executive of Cboe Global Markets, said the exchange group is at a critical inflection point as it focuses on the strategic growth drivers of data and analytics, global derivatives and digital assets.
Tilly said: “We chose this time because we believe Cboe is at a critical inflection point in our next phase of growth. As we broaden our global footprint, we have an unmatched opportunity to evolve the CBOE network.”
/bit.ly/3Dskfhh

SPACs trading approved for Swiss Exchange; Special Purpose Acquisition Companies (SPACs) can be listed and traded in Switzerland from 6 December.
Richard Schwartz – The Trader
Authorisation for the trading and listing of SPACs – shell companies founded for the sole purpose of acquiring a non-listed target company – has been obtained by SIX Swiss Exchange. Companies looking to list as a SPAC are principally subject to the same listing requirements as other companies on SIX Swiss Exchange. However, some requirements have been adapted to the specific characteristics of a SPAC to uphold an appropriate degree of investor protection.
/bit.ly/3HtVljO

Racing Force S.p.A. lists on Euronext Growth Milan
Euronext
Twenty-ninth listing of 2021 on Euronext Growth Milan;Racing Force S.p.A. brings the total number of companies listed on Euronext Growth Milan to 160; Total placement volume of the offering equal to EUR31.2 million; Milan – 16 November 2021 – Borsa Italiana, part of the Euronext Group, today congratulates Racing Force S.p.A. on its listing on Euronext Growth Milan.
Racing Force S.p.A. is one of the global leaders in the field of motorsport safety equipment and has a wide range of products ranging from helmets, suits, gloves and shoes to seats, seatbelts, rollbars, steering wheels, fire extinguishers and communication systems.
/bit.ly/3HsHaLT

Synfini ASX’s DLT as a Service Platform
ASX
/bit.ly/2TwaCc9

Opening address of Loh Boon Chye, CEO, SGX at Singapore Capital Markets Symposium 2021
SGX
1) Good afternoon to our Guest-of-Honour, Mr. Ravi Menon, Managing Director of the Monetary Authority of Singapore and to all our guests – a warm welcome and thank you for joining us today. It is a busy week with many events, so we are grateful for your presence. 2) Several years ago, I shared my views in a commentary on how it was an ambitious but achievable task for Singapore to be a global technology hub, if all the wheels in the ecosystem were set in motion. Singapore has many things going for us and we are all part of the blueprint of success.
/bit.ly/3Fswuv8

— Initial Listing of Japanese Power (Day-Ahead) Tokyo Base-Load Average Price Option Contract Contracts — CME
— Initial Listing of Two (2) Freight (Baltic) Futures Contracts — CME
— OTC IRS Production Advisory – USD LIBOR 1W & 2M Tenor Discontinuation — CME
— Notice Of Disciplinary Action:MEMBER FIRM: Nanhua USA LLC, CME Rules: Rule 970. FINANCIAL REQUIREMENTS — CME

Fintech

Google Cloud outage crashes major sites including Snapchat, Spotify
Will Feuer
A sweeping Google Cloud outage on Tuesday briefly crashed popular websites, including Snapchat, Spotify, Discord and Etsy, and while the issue has been partially resolved, Google says it’s not sure when it will have a full resolution. Google Cloud’s status dashboard shows that the company suffered a networking issue just before 1 p.m. ET.
/bit.ly/3FlP4EY

DIGITEC beefs up London team with four new appointments; New hires from sell-side firms for London office are in line with DIGITEC’s global growth and cross-asset product strategy.
Wesley Bray – The Trade
FX swaps technology and data provider DIGITEC has made four new appointments to its London team. Amongst the new appointments is George Procopiou, who joins the firm as client and sales enablement manager. Procopiou brings 14 years’ experience in FX and FICC client management to DIGITEC, having previously served at IHS Markit, Societe Generale and Anglo Irish Bank in various client-oriented roles.
/bit.ly/3Hz6wIe

Cybersecurity

The ransomware threat is getting worse. But businesses still aren’t taking it seriously
Danny Palmer – ZDNet
Ransomware is the most significant cybersecurity threat facing the country today, but many businesses still aren’t taking the threat as seriously as they should be, the National Cyber Security Centre (NCSC) has warned.
In its newly published annual review, the NCSC – the cybersecurity arm of intelligence agency GCHQ – details the incidents and threats the UK has faced during the past 12 months, including cyberattacks against the health service and vaccine developers during the coronavirus pandemic, state-sponsored cyber-espionage campaigns, phishing scams and more.
/zd.net/3CrGDGa

Design for Cybersecurity From the Start
Keri Pearlson and Keman Huang – MITSloan Management Review
Everyone understands how important security is to digital products and services. Customers expect digital offerings to be secure, especially when they’re incorporating them into their own products and services. For example, a manufacturer that includes a sensor in its product design expects the sensor it uses to be cybersecure and not introduce vulnerabilities. Any device connected to the internet can create an entry point for attacks that access the internal system, steal credentials, plant malware, or collect sensitive data. But as breach after well-publicized breach shows, our development processes to build cybersecurity into products and services continue to break down. We have not yet reached the point where security is not only expected but deeply embedded in every aspect of product development.
/bit.ly/3chNFmu

Cybersecurity experts say public-private partnership is the key to preventing future attacks
Dan Reilly – Fortune
The number of data breaches through the third quarter of 2021 is up 17% over the previous year combined, according to the Identity Theft Resource Center. A study by IBM and the Ponemon Institute says the cost of the average data breach is up to $4.24 million, up from $3.86 million in 2020. Some estimates say cyberattacks could cost businesses and government agencies $6 trillion in 2021 alone, with that number rising dramatically in the years to come.
/bit.ly/3DCciWM

Cybersecurity researchers tie Belarus to long-running hybrid warfare campaign against NATO member neighbors
MarketWatch
Cybersecurity researchers say they have uncovered evidence that Belarus has been involved in a hybrid hacking and disinformation campaign against Eastern European NATO members since 2016 that aimed to sow discord in the military alliance, steal confidential information and spy on dissidents.
Tuesday’s report by the prominent U.S. cybersecurity firm Mandiant appears to mark the first time Belarus has been blamed in the campaign known as Ghostwriter.
/on.mktw.net/3nojDnr

DoD Cybersecurity Maturity Model Certification 2.0
Andrew Tuggle and David Vance Lucas – National Law Review
Evolving and increasing threats to U.S. defense data and national security networks have necessitated changes and refinements to U.S. regulatory requirements intended to protect such.
In 2016, the U.S. Department of Defense (DoD) issued a Defense Federal Acquisition Regulation Supplement (DFARs) intended to better protect defense data and networks. In 2017, DoD began issuing a series of memoranda to further enhance protection of defense data and networks via Cybersecurity Maturity Model Certification (CMMC). In December 2019, the Department of State, Directorate of Defense Trade Controls (DDTC) issued long-awaited guidance in part governing the minimum encryption requirements for storage, transport and/or transmission of controlled but unclassified information (CUI) and technical defense information (TDI) otherwise restricted by ITAR.
/bit.ly/3wUwHUE

Cybersecurity lawyer rejoins Wilson Sonsini from Defense Dept.
Sara Merken – Reuters
Cybersecurity partner Beth George is heading back to Wilson Sonsini Goodrich & Rosati in San Francisco after about eight months as acting general counsel at the U.S. Department of Defense, the firm said Tuesday.
/reut.rs/30wRDEW

Cryptocurrencies

Bitcoin as a universal payment method? This Deutsche Bank chart shows one big thing standing in the way.
Barbara Kollmeyer – MarketWatch
The cryptocurrency is “not ready for mainstream use as a payments instrument,” argued Deutsche Bank research analyst Marion Laboure, who provided a chart showing just how few consumers are using bitcoin to pay for goods or services. In a survey conducted by the bank, they found that of 60% of those holding bitcoin (BTCUSD) have used it as a payment method.
/yhoo.it/3FpqoeC

L.A.’s Iconic Staples Center to Be Renamed as Crypto.com Arena
Jason Kelly – Bloomberg
Deal signals city’s aspirations as cryptocurrency center; Arena is home to Lakers, Clippers, Sparks and Kings pro teams
NBA star LeBron James and his teammates are getting a new name for their home court. Crypto.com will replace Staples as the title sponsor of downtown Los Angeles’s iconic arena, the most recent high-profile sponsorship move by the Singapore-based cryptocurrency exchange. Owned and operated by Anschutz Entertainment Group, the venue will unveil its new name on Christmas day during a Los Angeles Lakers home game, according to a statement from the company.
/bloom.bg/3CnkQPV

Binance CEO Advocates for Fundamental Crypto Rights
Joanna Ossinger – Bloomberg
Exchange says every human being has a right to financial tools; Regulators are finding he’s ‘not a crazy guy,’ Zhao says
Crypto exchange Binance has published a list of “fundamental rights” amid increasing regulatory pressure, arguing everyone should have access to financial tools like crypto.
/bloom.bg/3noVJZ5

‘Meme coin’ Floki Inu’s London marketing blitz probed by UK ad watchdog; Capital’s government under rising pressure to set tighter rules for crypto promotions
Joshua Oliver – FT
The UK advertising watchdog is investigating marketing by “meme coin” Floki Inu on London’s trains and buses as the city’s government faces rising pressure to set tighter boundaries for crypto promotions on public transport.
/on.ft.com/3noXbL1

GMEX launches interoperable trading and post-trade hub bridging access between traditional and digital asset markets
GMEX
GMEX MultiHub Limited (GMEX), a new business unit of the GMEX Group, is pleased to announce the launch of Digital MultiHub (MultiHub). MultiHub is a global cloud-enabled trading and post-trade digital market infrastructure platform which facilitates 3rd party trading and post-trade services across traditional and digital asset markets. Delivered through a Platform-as-a-Service, microservices distribution model, MultiHub enables capital markets participants to gain simple access to regulated digital assets and market infrastructure.
/bit.ly/3CqPbNM

Regulation

The SEC Still Doesn’t Like Spot Bitcoin ETFs
Danny Nelson – Coindesk
The U.S. Securities and Exchange Commission (SEC) put the kibosh on VanEck’s latest attempt to launch a spot bitcoin exchange-traded fund (ETF).
/yhoo.it/30tUmis

ASIC consults on consumer remediation draft guidance
ASIC
ASIC today released a draft updated and expanded regulatory guide to consult on the way licensees should conduct remediations to return money owed to consumers. The draft guidance is an important step to improving remediation across the financial services industry. Proactive remediation upon discovery of misconduct or other failures is necessary for licensees to achieve good outcomes for their consumers and comply with their licensing obligations to act efficiently, honestly and fairly.
/bit.ly/3oFnhZk

ASIC sues A&M Group for false and misleading, threatening and coercive conduct against debtors
ASIC
ASIC has commenced civil proceedings in the Federal Court against A&M Group Pty Ltd for misleading, threatening and coercive conduct against debtors who had missed payments under their debt agreements. A debt agreement (also known as a Part IX debt agreement) is a formal way for a debtor to settle their debts with creditors. A&M Group, which trades as Debt Negotiators, acts as a registered debt agreement administrator. This involves A&M Group collecting payments from the debtor and distributing the payments to creditors.
/bit.ly/3Hyqr9V

Former executive of Healthe Care Australia sentenced to 12 months imprisonment and fined $10,000 for insider trading
ASIC
Mr Gregory Campbell, of Paradise Waters, Queeensland, has been sentenced to 12 months imprisonment, to be released immediately upon his own recognizance in the sum of $10,000, and a fine of $10,000 for one count of insider trading in the shares of Pulse Health Limited (Pulse). Mr Campbell was also ordered to pay a pecuniary penalty order of $31,996 representing the profits made from his offence.
/bit.ly/3FsgHft

PODCAST; 2021 Small Firm Conference: A Fireside Chat with Robert Cook and Greg Ruppert
FINRA
The small firm community, those firms with 150 or fewer registered financial professionals, came together in October to discuss and engage on key areas of concern at the Small Firm Conference. On this episode, we’re taking you behind the scenes of this year’s event with an abridged look at the fireside chat with FINRA CEO Robert Cook and Executive Vice President Greg Ruppert, moderated by FINRA’s head of Member Relations Kayte Toczylowski.
/bit.ly/3kH9Qqz

FINRA OATS Retirement – Specification Changes
FINRA
Effective Wednesday, September 1, 2021, FINRA OATS Rules were deleted from the FINRA rulebook. See Regulatory Notice 21-21 and OATS retirement notice. FINRA has updated the Alternative Display Facility (ADF) and Over-the-Counter Reporting Facility (ORF) specifications to accommodate these changes and has renamed fields labeled “OATS” with “Compliance”.
/bit.ly/3kGnBpC

FCA proposes ban on debt packager referral fees to protect consumers
UK FCA
The Financial Conduct Authority (FCA) has proposed banning debt packager firms from being paid to refer customers on to other firms.
/bit.ly/3kNsVaG

Investing and Trading

ECB warns of ‘exuberance’ in housing, junk bonds and crypto assets; Investors taking risks in search for yield has left markets ‘susceptible to correction’
Martin Arnold – FT
Increased “exuberance” in housing markets, junk bonds and crypto assets have created vulnerabilities that will be exposed if higher than expected inflation leads to a sharp rise in interest rates, the European Central Bank has warned.
/on.ft.com/3clmbMF

Scaled back UK audit reforms attract investor anger; Ministers urged to rethink plans amid warnings that proposals risk further corporate scandals
Daniel Thomas, Michael O’Dwyer and Jim Pickard – FT
Investors and audit groups have urged the UK government to rethink plans to scale back corporate governance and audit reforms, arguing that any watering down of the proposals would risk further corporate scandals.
/on.ft.com/30vqK4z

Electric vehicle maker Rivian eclipses Volkswagen in value while Lucid overtakes Ford; Stock prices of start-ups climb past established rivals despite lack of sales
Peter Campbell – FT
The electric vehicle company Rivian has overtaken Volkswagen in market value, while rival start-up Lucid surpassed Ford, as shares in their largely unproven businesses continued to soar following their recent stock market listings.
/on.ft.com/2YTvzE8

Environmental, Social and Corporate Governance

Brussels seeks to curb deforestation with food import ban; Draft law would bar six commodities produced in at-risk areas from sale in single market
Mehreen Khan – FT
Brussels is seeking to ban imports of foods including beef and coffee from areas at risk of deforestation, in a landmark regulation designed to protect the world’s most vulnerable forests. Virginijus Sinkevicius, the EU’s commissioner for the environment and oceans, told the Financial Times that Brussels would target six agricultural products — beef, soy, palm oil, coffee, cacao and timber — in a draft anti-deforestation law due to be published on Wednesday.
/on.ft.com/3wUTvU6

Global climate fight hinges on China’s $6.5tn green investments challenge; World’s biggest polluter faces ‘Herculean’ task making transformation from coal to renewables
Edward White – FT
China needs to unleash $6.5tn in green investments and radically reorganise its economy if the planet is to win the fight against climate change, analysts say. The warning comes after hopes that governments would commit to bolder decarbonisation targets at COP26 were dashed by India and China watering down pledges to end coal-fired power.
/on.ft.com/3DtdJH7

A new phase for green investing; More specific view of how individual companies are tackling climate change will be needed
Huw van Steenis – FT
A battle is raging across finance about the best way to invest in the green transition. And the COP26 summit just raised the stakes through the announcement of a new International Sustainability Standards Board for accounting.
/on.ft.com/30wQ8GO

Net inflows into UBS ETFs this year have been only to ESG funds; Manager’s other ETFs have seen net outflows
Ed Moisson – FT
All of the net inflows collected by UBS exchange traded funds this year are into sustainable products, while its other ETFs have seen aggregate net outflows. UBS Asset Management said its sustainable product range was “really where the growth is”, adding that the sales trend had been driven by switching from other funds as well as new money.
/on.ft.com/3DsqB03

GoldenSource and Arabesque partner to improve buy- and sell-side ESG data access; Partnership will allow GoldenSource’s clients to access Arabesque’s new solution that helps investors meet upcoming Sustainable Finance Disclosure Regulation (SFDR) requirements.
Wesley Bray – The Trade
GoldenSource and Arabesque have partnered to improve buy-side and sell-side investors’ access to ESG data and insights. Under the partnership, investors across the street will be able to access Arabesque S-Ray’s suite of ESG data assets and insights hosted on the Amazon Web Services (AWS) Data Exchange, through GoldenSource’s solution for ESG quality checks and portfolio screening, ESG Impact.
/bit.ly/3l5U3lJ

‘Just gives us a price’ on carbon, BofA CEO says
Katherine Dunn – Fortune/Green, Inc.
Good morning.
This is Katherine, coming to you from London, after two weeks in Glasgow at COP26.
The world is recovering from the two week spectacle of the climate conference, and trying to digest its (very) mixed lessons. As I wrote earlier this week, the tally doesn’t tend towards easy takeaways: on the one hand, 1.5C is the new 2C, finance is shifting quickly, and the U.S. and China pledged to work together. On the other hand, the coal pledges were watered down, the Biden administration came across as distracted, and even current pledges—by every estimate—collectively put the world at a temperature rise that is too high.
One of the less expected takeaways from COP26, however, was a breakthrough in efforts to stitch together a global carbon offset trading system, by aiming to standardize and legitimize how offsets can be traded between countries.
/bit.ly/3kHL61K

Institutions

To work with JPMorgan’s ultra-wealthy clients, aspiring advisors need to complete hundreds of hours of intense training. From role-playing to taped voicemails, here’s how it works.
Hayley Cuccinello – Business Insider
David Frame, chief executive of JPMorgan’s private bank, wants to have advisors in every US city with at least 10,000 people worth $10 million or more. In order to do this, he plans to add 1,500 private-bank advisors over the next five years, which would double the headcount.
/bit.ly/30zHrLS

Bill Hwang Made a Huge, Secret Bank Bet Before Archegos Collapse; His wager on a bank’s shares sent the price rocketing before the lender raised capital. Then Archegos imploded, taking the stock down too.
Sridhar Natarajan and Katherine Burton – Bloomberg
It’s a move that’s almost unthinkable even for Wall Street’s most maverick investors, for fear of landing in regulatory crosshairs. But buried in the billions Bill Hwang wagered and lost, the man behind Archegos Capital Management used derivatives to secretly build a more-than 20% stake in a U.S. regional bank, right under the noses of financial watchdogs, according to people with knowledge of the situation. That sent the stock on a wild surge, and when Archegos collapsed, a dramatic plunge.
/bloom.bg/3nn2t9x

Commerzbank CEO Says He’d Like to See Germany Exit Its Stake
Nicholas Comfort – Bloomberg
Commerzbank AG Chief Executive Officer Manfred Knof said he’d like to see Germany exit a stake it took in the lender as part of a financial crisis era bailout.
/bloom.bg/3CwcCFy

Top Barclays investors raise alarm over terms of Jes Staley’s exit; Bank to hold meetings with shareholders as some criticise £2.4m in pay awarded to former chief executive
Stephen Morris and Owen Walker – FT
Three of Barclays’ top 20 shareholders have raised concerns over the terms of Jes Staley’s exit ahead of meetings between the bank and investors next week. Some investors have privately criticised the £2.4m in pay awarded to the departing chief executive, who resigned this month following a probe into his past ties to convicted sex offender Jeffrey Epstein.
/on.ft.com/3cocjlr

‘Work from home’ ETFs diverge as investors bet on reopening; Cloud computing and remote communications stocks stay strong while consumer names struggle
Nicholas Megaw – FT
The performances of two rival funds launched to track the shift toward remote working have diverged wildly this year, as investors bet that some changes brought by the coronavirus pandemic will endure more than others.
/on.ft.com/3nkrUbT

Founder backs CMC split after £6m dividend; Peter Cruddas wants to separate riskier spread betting from retail investment services
Daniel Thomas – FT
The founder of UK spread betting business CMC Markets will earn a £6m dividend from the business ahead of a proposed break up next year. Peter Cruddas, who owns about 62 per cent of the company with his family, said that splitting CMC’s riskier spread betting business from its nascent investment platform, which offers stockbroking services, was a “no brainer” because it would create value for shareholders.
/on.ft.com/2YVQnLp

Hedge funds secure bulk of £300m recovered from Debenhams; Landlords, local authorities and suppliers face wipeout after retailer’s collapse
Jonathan Eley – FT
The hedge funds that acquired control of Debenhams before its collapse last year have received more than two-thirds of the £300m recovered by the department store chain’s administrators, new documents show.
/on.ft.com/3CnpdKX

Regions

London’s Shiny New IPOs Post Lackluster Returns Versus Europe
Swetha Gopinath – Bloomberg
IPOs have returned 7.3% in the U.K. vs 16% on the continent; U.K. weighed down by bad performances of Alphawave, Deliveroo
London may be hanging on to its status as Europe’s largest listing venue after Brexit, but its newest stocks aren’t as hot for investors as continental initial public offerings.
/bloom.bg/3wTnNqm

India closes coal-fired plants as New Delhi is smothered in toxic smog; Schools shut and construction work banned in city and surrounding region that are choking on pollution
Amy Kazmin – FT
Indian regulators have closed six of the 11 coal-fired power plants within a 300km radius of New Delhi, as the capital has been blanketed by toxic smog for nearly two weeks. The Commission for Air Quality Management also closed schools and colleges until further notice, banned private construction work and restricted the entry of trucks into the city until November 21.
/on.ft.com/3cnuJCF

Investors pivot to India after China’s tech crackdown; Paytm’s $2.5bn listing is expected to be the country’s largest-ever IPO. But is its start-up sector already overheated?
Benjamin Parkin and Mercedes Ruehl – FT
In 2011, Vijay Shekhar Sharma, a 33-year old Indian entrepreneur, watched Alibaba founder Jack Ma speak in Hong Kong. “I did not know my life would change at that conference,” Sharma later said. “I became totally interested in China, Alibaba and Jack.”
/on.ft.com/3Cp7fYo

Shell faces threat of Dutch ‘exit tax’ as relocation plan causes outcry; Opposition political parties seek to resurrect bill designed to punish companies that leave for tax reasons
Mehreen Khan, Tom Wilson and Emma Agyemang – FT
Shell has been threatened with an exit penalty by Dutch opposition parties after the energy company’s decision to end its dual-share structure and move its tax base to the UK triggered a political backlash in the Netherlands.
/on.ft.com/3wUpUdy

Big Winners From Natural-Gas Crunch: Coal Power Plants in Europe; Profit margins are far and away the highest they have been in years. Under Europe’s climate policies, this shouldn’t be happening.
Joe Wallace – WSJ
Coal power plants are running at full tilt in parts of Europe and enjoying a rare bout of massive profitability, a setback to efforts to cut carbon emissions. Under Europe’s climate policies, this shouldn’t be happening. The European Union and U.K. pushed world leaders, unsuccessfully, to back an end to coal consumption at the Glasgow summit on climate change. Both have markets for emission permits that are designed to pinch profit at polluters such as coal-fired power stations and funnel capital toward greener energy.
/on.wsj.com/3DCcvcw

Miscellaneous

12 Wines for Thanksgiving and Beyond; The characteristics that make a bottle great for the holiday work for just about any occasion. These wines not only taste good, they feel good.
Eric Asimov – NY Times
Thanksgiving is the most singular meal of the year for most Americans. It’s usually the biggest dinner party, with dishes cooked maybe once a year, often by many different people. It may also be the only day of the year when generally compartmentalized groups of family and friends blend together.
/nyti.ms/2YTxxEv

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