Goldman Wants Trading Derivatives to Be Easy as Buying on Amazon

Oct 25, 2023

First Read

Hits & Takes
John Lothian & JLN Staff

Oliver Sung, Cboe’s interim Head of North American Equities, wrote an Insights post about last week’s SEC exchange rebate proposal and why these changes could have a deleterious effect on competition, driving more trading to undisclosed, less transparent, less accessible, less regulated trading venues. The Insights post is titled “The Unintended Consequence of Market Structure Reform: Cutting Out the Everyday Investor.”

In the post, Sung looked into the dynamics of trades on exchanges. He emphasized that trades made on these platforms aren’t just visible to the public, but regulators have a comprehensive view of them, ensuring that the markets maintain their fairness and order. He also pointed out the ongoing proposals by the SEC that aim to decrease access fee caps and remove certain volume-based pricing discounts. Such proposals might inadvertently push trading volumes towards off-exchange venues, he wrote. Sung mentioned that volume-based pricing tiers are a source of competition among exchanges and even among non-exchange platforms, aligning with a recognized economic model. However, he cautioned that while these proposals might be made with good intentions, they could potentially have adverse effects on the markets. For instance, we might see broader spreads of the public quote, especially in stocks with a higher price.

The Big Read in today’s Financial Times is titled “Can Sam Bankman-Fried argue his way out of trouble?” And the subheading is “After days of prosecution evidence, including testimony from erstwhile colleagues and friends, some legal experts think the former FTX boss will now have to take the stand.”

SBF is going to have to spin a believable tale like never before, without the beanbag chair, wild hair and cargo shorts and t-shirt.

The S&P Annual Nodal Trader Conference is scheduled for October 26th and 27th in Washington, DC. Leading experts from the industry will offer insights on the energy transition, advancements in energy storage, and the effects of increasing renewables and electric storage. For more information, click HERE.

CoinDesk reported “Open interest for the CME’s bitcoin product hit 100,000 BTC ($3.4 billion) for the first time ever.”

Law360 and Katryna Perera win the award for the best headline for the story of the CFTC fining Ceres for trying to manipulate the oat futures market. The headline is “Oats Company Fined $3M For Trying To Roll Futures Prices.”

The latest “non-exclusive” video interview from Finance Feeds at FIA EXPO is titled “CQG At FIA Expo 2023: Ryan Moroney’s Take On Rates, AI Regulations, And Equity Options.” You can also view JLN’s video with Moroney and The Most Interesting Man in the World, Pat Kenny, titled “CQG Leadership Addresses the State of the Second Half and Industry Trends at FIA EXPO.”

Investment & Wealth Advisor Kevin Jamali has written a commentary on LinkedIn titled “From the Pits to going Farther!”

There are signs that Jim Harbaugh may be the next coach of the Chicago Bears football team, and no, he did not steal these signs. Harbaugh is engrossed in a sign stealing scandal at the University of Michigan, where he is the head football coach. The former Bears quarterback and Michigan alumnus would be a good choice to replace the current Bears coach. The best parts of the scandal are the students at other schools trolling Harbaugh for the scandal.

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

*****

Our most read stories yesterday on JLN Options were:
Balanced trading is calming zero-day volatility fears from Risk.net.
The Unintended Consequence of Market Structure Reform: Cutting Out the Everyday Investor from Cboe.
Stocks are adjusting to the new normal of high volatility, but haven’t yet priced in coming ‘macro damage,’ BlackRock says from Markets Insider. ~JB

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

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41 states sue Meta, claiming Instagram, Facebook are addictive, harm kids; The action marks the most sprawling state challenge to date over social media’s impact on the mental health of children
Cristiano Lima and Naomi Nix – The Washington Post
Forty-one states and D.C. are suing Meta, alleging that the tech giant harms children by building addictive features into Instagram and Facebook – legal actions that represent the most significant effort by state enforcers to tackle the impact of social media on children’s mental health. The barrage of lawsuits is the culmination of a sprawling 2021 investigation into claims that Meta contributes to mental health issues among young people. While the scope of the legal claims vary, they paint a picture of a company that has hooked children on its platforms using harmful and manipulative tactics.
/jlne.ws/3Sdegr5

***** I told my wife she should try Facebook. She is now addicted. Can I sue? Or is it my fault?~JJL

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Google, Bank Coalition Pledge Billions to Underserved Businesses; Biden administration announces measures to boost small firms; IRS will also increase spending with disadvantaged businesses
Michael Sasso – Bloomberg
Alphabet Inc.’s Google and a coalition of US banks and foundations are pledging to steer at least $4 billion toward small businesses and minority lending institutions, Deputy Treasury Secretary Wally Adeyemo said Tuesday. The Biden Administration announced a series of measures to boost small and minority-owned businesses ahead of its annual Freedman’s Bank Forum, which focuses on economic opportunity for communities of color.
/jlne.ws/408I6ie

****** Does it count that my business is disadvantaged because it is run by me?~JJL

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Your ‘Set It and Forget It’ 401(k) Made You Rich. No More; Stock-and-bond portfolios that worked for the past 40 years aren’t ready for what’s coming
Spencer Jakab – The Wall Street Journal
Investors, we’re not in Kansas anymore. For four decades, patient savers able to grit their teeth through bubbles, crashes and geopolitical upheaval won the money game. But the formula of building a nest egg by rebalancing a standard mix of stocks and bonds isn’t going to work nearly as well as it has.
/jlne.ws/3QdF8EI

****** Amid the chaos of 60/40 and 70/30 stocks to bond portfolio difficulties, the risks of scams and sure thing performance comeons greatly increases. Be aware.~JJL

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Tuesday’s Top Three
Our top story Tuesday was The New York Post’s Inside Ken Griffin’s property and art empire: $1B Palm Beach spread is only the beginning. And second was Billionaire Ken Griffin Is Building Himself the World’s Most Expensive Home, from the Robb Report via Yahoo. Third was JLN’s Roosevelt University Students Propose Futures Market for Space, a video in which John Lothian interviews an honor student and two professors about their space commodity futures project.

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Lead Stories

Goldman Wants Trading Derivatives to Be Easy as Buying on Amazon; Bank offering visual structuring tech for credit derivatives; Company plans to expand product to rates trading next year
William Shaw – Bloomberg
Goldman Sachs Group Inc. is expanding its use of a technology that leverages artificial intelligence in the hopes that it will make it easier for clients to plan complex derivatives trades. After already using the software to shake up the worlds of equities and foreign exchange options, the firm in recent weeks began allowing clients to use its visual structuring product for credit derivatives. It’s aiming to offer the service for rates trading in the first half of next year, Chris Churchman, who runs Goldman’s digital trading platform Marquee, said in an interview.
/jlne.ws/45JI9Cm

Shorter US settlement times have European ETFs rushing to be ready; Moving to a one-day settlement cycle is likely to increase costs for the continent’s asset managers
Emma Boyde – Financial Times
A decision by the US Securities and Exchange Commission to shorten the period for settling bond and share trades – from two days to just one – has prompted a burst of activity in the exchange traded fund industry. Much of it has been trying to assess the difficulties this will pose in Europe – as US securities now represent more than 40 per cent of EU funds’ assets under management, according to the European Fund and Asset Management Association.
/jlne.ws/46Ys39z

Wall Street CEOs are sounding even more somber about the near future
David Hollerith – Yahoo Finance
Some of Wall Street’s top executives were cautious about the direction of the economy when they released their third-quarter earnings results in mid October. They still sound just as somber, if not more so, a week later. “If you listen to the dialogue today, I’d say there’s great uncertainty,” about new deal making among CEOs, Goldman Sachs (GS) boss David Solomon said Tuesday at the Future Investment Initiative, an annual gathering of CEOs and global leaders in Saudi Arabia. Goldman last week reported that the firm’s profits dropped 33% during the third quarter due in part to the corporate caution underpinning a long-running investment banking slump, a pattern that repeated at many big banks with sizable Wall Street operations.
/jlne.ws/4096oZq

CFA Final Exam Pass Rate Slips to 47%, Below Historic Average
Katherine Doherty – Bloomberg
The pass rate for the final level of the chartered financial analyst exam stayed below the decade average but above the historic lows set two years ago, when the pandemic disrupted testing. In August, 47% of candidates successfully finished the series, below the 48% pass rate for those who sat for the Level III exam this past February and August of last year. Still, the rate was higher than the historic low of 42% for that exam, set in 2021. The 10-year average success rate for the final exam is 52%, according to the CFA Institute.
/jlne.ws/4786EdD

FTX Is Negotiating With Three Bidders to Restart Crypto Exchange
Steven Church – Bloomberg
FTX Trading Ltd. is considering proposals from three bidders to restart trading on what had been one of the world’s biggest crypto exchanges before the company sank into bankruptcy amid fraud allegations. The company will make a decision about how to proceed by mid-December, the company’s investment banker, Kevin M. Cofsky of Perella Weinberg Partners, said Tuesday during a court hearing in Wilmington, Delaware. FTX is negotiating details of potentially binding offers with investors, Cofsky said.
/jlne.ws/45IBh8o

What derivatives history tells us about crypto’s future growth; Derivatives offer a blueprint for how a misunderstood asset, like crypto, can achieve widespread support across financial markets
Bart Hillerich – Blockworks
Capital markets are an ever-changing constant in modern society. Their role has evolved across centuries, driven by the gradual progress of product innovation and the globalization of capital, particularly in the last few decades, in which we’ve seen unprecedented development in how markets operate. Algorithms have overtaken humans in asset trading, and innovations like derivatives, originally feared and scorned, have become an integral part of daily trading. Today, we are all witness to the digitization of markets-everything from tokenization to stablecoins-as the cryptocurrency industry seeks to reshape the very foundation upon which the traditional system rests.
/jlne.ws/3MgsJ1k

Oil Refiners Get a Taste of an Electric Future; The price difference between a barrel of crude and a barrel of petrol offers a glimpse of things to come for the industry.
Liam Denning – Bloomberg
Not the sort of futuristic vision associated with the likes of Elon Musk, but Musk-adjacent nonetheless: It’s a portent of electric vehicles taking over. The business of producing gasoline has soured of late. Benchmark gasoline crack spreads – the price difference between a barrel of crude oil and a barrel of gasoline, a proxy for gross margins – have slumped since August. At the same time, the heating oil crack, which includes diesel, has stayed relatively strong, hitting six times that of gasoline earlier this month, the widest gap in more than a decade (barring the wild swings at the start of the pandemic). The gap has come in a bit since but is still almost four times.
/jlne.ws/3SfoQ0M

Can CCPs provide a port in a storm for securities lending? Basel III, T+1 and EquiLend scandal all incentivise clearing, but also disintermediation
Paulina Pielichata – Risk.net
They say every cloud has a silver lining. The clouds hanging over securities lending in recent months have been fairly threatening, but participants still see a possible ray of sunshine: greater uptake of central clearing in a corner of the market where it has made little headway to date.
/jlne.ws/40d42cg

Finance’s Big Guns Are Betting on Bonds and Chaos; Dalio, Dimon, Ackman, Gross: A dream team is very worried about spiraling debt and global instability.
Jessica Karl – Bloomberg
‘100% Dead Wrong’
Ooopsies: “In a year when the US economy exceeded almost everybody’s expectations, the underlying federal deficit roughly doubled, spotlighting a dire fiscal trajectory likely to only worsen the partisan budget battles in Washington,” Christopher Condon and Chris Anstey wrote in Bloomberg News this morning. A $2.02 trillion deficit in a single year is bad no matter which way you slice or dice it, obviously. But it feels as though we’ve entered some sort of demonic death spiral, where long-term Treasury yields continue to climb to heights not seen in ages and the government is forced to issue even more debt to cover the shortfall of revenue relative to spending. How can we possibly escape from all of this unscathed?:
/jlne.ws/3tIlc5b

Deutsche Bank pledges to raise investor returns on promising results; German lender reports better than expected third-quarter figures and highest annual revenue forecast in seven years
Olaf Storbeck – Financial Times
Deutsche Bank said it would have capacity to increase dividends and share buybacks over the next two years as it reported better than expected third-quarter results. Pre-tax profit at Germany’s largest lender rose 7 per cent year on year to EUR1.7bn, beating analysts’ forecasts of EUR1.6bn. It was buoyed by rising interest rates, which helped its corporate and private banking divisions, while investment bank revenues fell 4 per cent.
/jlne.ws/45KV5rx

Oil megadeals usher in an age of energy uncertainty; Those betting transactions by Chevron and ExxonMobil signal robust demand growth may want to think twice
David Sheppard – Financial Times
Saudi Arabia’s energy minister Prince Abdulaziz bin Salman thinks that the return of the oil mega-deal is “testament” that “hydrocarbons are here to stay”. His view, echoed by many in the oil sector, is why would Chevron and ExxonMobil drop $120bn-plus combined on buying Hess and Pioneer if they thought oil demand was at risk of heading into decline?
/jlne.ws/45P5wKG

Japan equity fees top China for the first time since 1999; A sustained rally in Tokyo drives a spate of new listings as foreign investors turn away from Chinese markets
Hudson Lockett and Leo Lewis – Financial Times
Japan has surpassed China as a driver of investment banks’ revenues from equity fees for the first time in almost 25 years, as global investors shun Chinese markets and a sustained rally in Tokyo stocks drives listings. A rush of equity business in Japan has pushed the country’s contribution to banker fees to more than $440mn so far in 2023, about 30 per cent of the total in the Asia-Pacific region, according to data from Dealogic.
/jlne.ws/3Mklzt5

AI-focused ETFs spread risk as fears grow of bubble; Amid the wave of investor enthusiasm, funds say a diverse, long-term approach mitigates the difficulty of picking winners
Chris Flood – Financial ;Times
Artificial intelligence represents one of the biggest technological advances ever, with a wide array of applications – from drawing pictures to driving cars. And asset managers have been quick to develop exchange traded funds that can capitalise on this potential.
/jlne.ws/475h2T8

Sam Bankman-Fried might risk testifying in criminal trial, experts say
Jody Godoy – Reuters
Sam Bankman-Fried has little to lose by bucking conventional wisdom and taking the stand at his criminal fraud trial, following weeks of testimony that he stole billions of dollars from unwitting customers of his FTX cryptocurrency exchange. Doing so would expose Bankman-Fried to probing cross-examination by prosecutors who would come armed with documents, messages and testimony from cooperating witnesses that they can use to attack his credibility.
/jlne.ws/471HqNL

British Bankers Shouldn’t Celebrate the Bonus Cap’s Demise; Banks will have more freedom to pay bonuses well in excess of base salaries. This could shift the power balance back to them from their employees.
Chris Hughes – Bloomberg
The defining characteristic of investment banking is that bankers take more than their fair share of the rewards made by the firm. The UK’s decision to remove the cap on banker bonuses will be seen by many as helping finance workers do just that. But if banks use their regained flexibility on pay responsibly, the opposite should be the case.
/jlne.ws/45MSYnh

Finland Says Hong Kong-Flagged Ship Anchor Breached Pipeline; Nordic country recovered anchor from site of pipeline damage; Probe ongoing into whether damage was caused intentionally
Kati Pohjanpalo and Leo Laikola – Bloomberg
Finnish authorities raised a ship anchor on Tuesday from the seafloor in the area where an underwater gas pipeline was damaged earlier this month, saying a Hong Kong-flagged vessel appears to have caused the incident. The National Bureau of Investigation displayed pictures at a news conference of what it said was a 6-ton anchor that appears to be missing one of its arms, potentially belonging to the Hong Kong-flagged vessel “Newnew Polar Bear.” An investigation is proceeding into whether the damage was intentional, officials told reporters in Vantaa, just outside of Helsinki.
/jlne.ws/46HORKx

Trump-Era Top Bank Regulator Quarles Defends Stance Before SVB
Katanga Johnson – Bloomberg
The Federal Reserve’s top bank watchdog for most of the Trump administration fired back at critics who have said the central bank’s stance during his tenure left regulators less prepared. Randal Quarles, who served as the Fed’s vice chair for supervision until late 2021, said regulators had the tools that they needed to deal with issues that came to light when Silicon Valley Bank and Signature Bank collapsed in March. He added that recent rule changes proposed by regulators since then have missed the mark.
/jlne.ws/3tFCC2e

In ‘unusual’ move, Virtu fights $25m SEC fine for data safeguarding breach; Virtu disputes the regulator’s claim that employees had ‘unfettered’ access to consumer data.
Eliot Raman – Waters Technology
Last month, the US Securities and Exchange Commission (SEC) sued market-maker Virtu Financial over data safeguarding concerns, prompting questions around fairness as well as expected leniency after voluntary disclosures.
/jlne.ws/4784sCV

The race to be last man standing in Big Oil; US supermajors are bulking up despite forecasts that demand will soon peak
The Editorial Board – Financial Times
Who is right about the future of oil? The International Energy Agency has predicted that global demand for oil, along with natural gas and coal, will peak this decade, in a historic turning point. US supermajors beg to differ. ExxonMobil’s purchase of shale producer Pioneer Natural Resources this month and Chevron’s deal this week to acquire Hess amount to the biggest consolidation in Big Oil for two decades. The tie-ups are a bet that the IEA’s vision of shrinking demand is wrong, or at least a bid to position these enlarged US giants among the last producers standing to meet the demand they believe will still exist by mid-century. In doubling down on oil, US groups are also widening the gap with European peers that have begun, tentatively, to embrace clean energy.
/jlne.ws/3tMefAa

Grayscale Breaks Into Crypto Index Business With FTSE Russell
Lucy Brewster – ETF.com
Grayscale Investments, a cryptocurrency asset-management firm, has joined forces with FTSE Russell, the index division of the London Stock Exchange, to roll out five new cryptocurrency-focused indexes.
/jlne.ws/3tM3nSL

Record-Breaking Weather in 2023 Shows Impact of Climate Change; The annual State of the Climate report underscores how severe and widespread the impacts of global warming have been in recent months.
Kendra Pierre-Louis – Bloomberg
This year broke records in all the wrong ways. That’s the chilling conclusion of a special report on climate change published today in the journal Bioscience. “Life on planet Earth is under siege,” said William Ripple, a distinguished professor of ecology at Oregon State University and a lead author on the report. The annual “State of the Climate” analysis aims to provide a succinct and accessible overview of the global warming impacts the world has experienced over the past year, and how we can mitigate them.
/jlne.ws/45LwDWU

AI risk must be treated as seriously as climate crisis, says Google DeepMind chief; Demis Hassabis calls for greater regulation to quell existential fears over tech with above-human levels of intelligence; Hope or horror? The great AI debate dividing its pioneers
Dan Milmo – The Guardian
The world must treat the risks from artificial intelligence as seriously as the climate crisis and cannot afford to delay its response, one of the technology’s leading figures has warned. Speaking as the UK government prepares to host a summit on AI safety, Demis Hassabis said oversight of the industry could start with a body similar to the Intergovernmental Panel on Climate Change (IPCC).
/jlne.ws/3SdM9b3

Ukraine Invasion

Ukraine-Russia war – live: Putin turns to new weapon for winter attacks as bombing of Avdiivka continues; The longer-range weapon is harder to detect than the Iranian-made Shahed drone and may be used over winter
Alexander Butler, Maira Butt – Independent
The Russian Army has used new, longer-range drones for the first time in an attack against Ukraine near Kyiv, reports suggest. The Italmas weapon, which is harder to detect than the Iranian-made Shahed drone, may be part of Vladimir Putin’s strategy to expand Russia’s arsenal as harsher winter weather approaches, the Institute for the Study of War said.
/jlne.ws/3Qtl42q

Ukraine Recap: Zelenskiy Vows to Strike Back If Energy Grid Hit
Bloomberg News
Ukrainian President Volodymyr Zelenskiy said his military will strike back if Russia renews attacks on energy infrastructure as the embattled nation braces for another season of missile barrages on its grid and power facilities.
/jlne.ws/3Qv1sef

Russia’s Shoigu says Moscow exhausting Ukrainian army
AFP
Russia claimed Wednesday it was exhausting Ukraine’s army, 20 months into a conflict in which neither side has made recent significant gains. Russian Defence Minister Sergei Shoigu made the comments during a visit to east Ukraine, the defence ministry said Wednesday.
/jlne.ws/3sbIiAD

Israel/Palestine Conflict

US antisemitic incidents up about 400% since Israel-Hamas war began, report says
Kanishka Singh – Reuters
Antisemitic incidents in the United States rose by about 400% in slightly over two weeks since war broke out in the Middle East after Palestinian Islamist group Hamas attacked Israel on Oct. 7, advocacy group Anti-Defamation League (ADL) said Wednesday.
/jlne.ws/3MaWIbi

UN chief denounces ‘clear violations’ of international law in Gaza; António Guterres says Hamas assault ‘did not happen in a vacuum’ but grievances cannot justify violence
Mehul Srivastava – Financial Times
UN chief António Guterres condemned “clear violations of international law” in Gaza as the US added to mounting pressure on the Israeli government to pause its bombardment of the besieged coastal enclave and allow in more aid. In his toughest remarks so far about the conduct of the war in the Gaza Strip, Guterres told the UN security council on Tuesday that the safety of civilians was paramount.
/jlne.ws/3s7RQNi

Pentagon Set to Transfer Army’s Two Iron Dome Units to Israel; Units have more than 300 Tamir interceptors to be transferred; Army bought the units to beef up medium-range air defense
Anthony Capaccio – Bloomberg
The Pentagon is sending Israel the US Army’s two batteries of Iron Dome radar, command posts and interceptors to boost the nation’s air defense. The plan to flow additional Iron Dome support to Israel was confirmed by a defense official who asked not to be identified discussing a pending announcement. The Department of Defense is currently engaged in planning to support the provision of the two US Army batteries to Israel, the official said.
/jlne.ws/471g1M7

The many reasons Netanyahu may be delaying an Israeli ground offensive in Gaza
Anna Schecter – NBC News
The silence of Benjamin Netanyahu is deafening as the world waits for a potential Israeli ground offensive in Gaza. Eighteen days have passed since more than 2,000 Hamas militants terrorized Israelis, murdering families, killing concertgoers, taking hostages and killing 1,400 people in the bloodiest terrorist attack in the nation’s history. Within hours, Israel declared war on Hamas and began pummeling Gaza with airstrikes that have killed more than 5,000 Palestinians, according to Palestinian health officials.
/jlne.ws/4789eQV

US Presses Gulf Allies to Help Stem Fresh Fundraising for Hamas; US-Gulf group calls special meeting to curb Hamas cash inflows; Aim is to stop Hamas building on Oct. 7 deadly Israel attack
Sam Dagher – Bloomberg
The US has called on Gulf Arab states to help clamp down on a suspected increase in fundraising by the militant group Hamas following its deadly attack on Israel earlier this month. A previously scheduled meeting of the Riyadh-based Terrorist Financing Targeting Center – a body formed in 2017 including the US, Saudi Arabia and five other Gulf Arabic states – was brought forward to Monday this week from next month, according to the US Treasury.
/jlne.ws/3S8Yai7

Exchanges, OTC and Clearing

FTSE Russell and Tradeweb Announce Strategic Partnership; Collaboration to expand benchmark pricing, broaden index inclusion and enhance trading functionality across fixed income products
London Stock Exchange Group
The partnership seeks to develop the next generation of fixed income pricing and index trading products by leveraging FTSE Russell’s innovative Fixed Income index solutions and Tradeweb’s fixed income trading platform and data capabilities. Fixed Income closing prices will be administered as benchmarks by FTSE Russell and be derived from trading activity on Tradeweb’s platform. The partnership aims to extend pricing coverage to most constituents featured in the FTSE Fixed Income Index universes and explore incorporating new Tradeweb pricing sets into FTSE Fixed Income Indices. FTSE Russell, an LSEG business and Tradeweb Markets Inc, today announced a strategic partnership to develop the next generation of fixed income index pricing and index trading products.
/jlne.ws/3Qtt17M

FEAS signs exchange of letters with UN SSE
Sustainable Stock Exchanges Initiative
Today at UNCTAD’s World Investment Forum in Abu Dhabi, the UN SSE and the Federation of Euro-Asian Stock exchanges (FEAS) strengthened the collaboration between their respective organisations through an Exchange of Letters. The UN SSE looks forward to working more closely with FEAS and its members in the Euro-Asian region on capacity building and technical assistance related to sustainable finance and the achievement of the UN Sustainable Development Goals. The signing was recorded in the SSE TV booth at the World Investment Forum and featured an interview with Anthony Miller, Chief Coordinator of UN SSE and Dr. Konstantin Saroyan, Secretary General of FEAS.
/jlne.ws/3FusUSX

CME Group Inc. Reports Third-Quarter 2023 Financial Results
CME Group
CME Group Inc. (NASDAQ: CME) today reported financial results for the third quarter of 2023. The company reported revenue of $1.3 billion and operating income of $820 million for the third quarter of 2023. Net income was $750 million and diluted earnings per common share were $2.06. On an adjusted basis, net income was $818 million and diluted earnings per common share were $2.25. Financial results presented on an adjusted basis for the third quarter of 2023 and 2022 exclude certain items, which are detailed in the reconciliation of non-GAAP results.
/jlne.ws/3tKh2Kf

BME and SANFI reach a collaboration agreement on financial literacy to expand Braindex offerings
BME
Braindex, BME’s online training platform, will include two new courses provided by Santander Financial Insitute (SANFI). BME and SANFI (Santander Financial Institute) have signed today at the Palacio de la Bolsa de Madrid a collaboration agreement to expand the training offer of Braindex, BME’s 100% online training platform. The signing ceremony was attended by Enrique Castellanos, director of Instituto BME; Begoña Torre, general director of UCEIF and SANFI, and Belén Díaz, academic director of SANFI. As a first step of this agreement, Braindex will include two new SANFI courses in its area of Regulation applied to the sector: “What’s new in IFRTS 17” and “SFDR and Green MiFID”.
/jlne.ws/45LmMAF

HKEX Welcomes Chief Executive’s Policy Address
HKEX
HKEX Chairman, Laura M Cha, said: “We welcome today’s Policy Address by Hong Kong Chief Executive John Lee. We thank the Chief Executive and his administration for their continued support on measures to further drive the sustainable development of Hong Kong’s financial markets, in particular, the proposed reduction of stamp duty on stock market transactions, helping to reduce the cost of trading. This, along with other initiatives, will strategically position Hong Kong’s markets to capture the significant opportunities ahead, building on existing strong foundations and enhancing their competitiveness and attractiveness. At HKEX we remain resolutely focused on supporting the long-term growth of Hong Kong as an IFC. We look forward to continuing to work with the HKSAR Government and all our stakeholders to further build the vibrancy and resiliency of Hong Kong’s markets, for the benefit of our community and the market as a whole.”
/jlne.ws/3tNOu2r

Primer On CCP Credit Risk Monitoring
CCP Global
A CCCP Global Paper. Introduction. Recent market volatility and stresses, including those stemming from the COVID-19 pandemic, rising inflation, heightened geopolitical uncertainty or outright war, and banking turmoil have provided a series of tests on the centrally cleared model and posed stresses to market participants. Central counterparties (“CCPs”) have demonstrated resilience during these market events as a result of their robust risk management tools. The purpose of this paper is to provide information on the existing practices of CCP credit risk management frameworks, with a focus on the monitoring mechanism.
/jlne.ws/49ax14g

Almesmart Re-Booking Process
London Metal Exchange
Summary, 1. On the morning of 24 October 2023, LME Clear experienced an issue with its clearing system, LMEmercury, with certain trade details not being correctly processed. LME Clear investigated and LMEmercury has now been fully restored. Throughout, LME trading and pricing systems were unaffected and operated as normal. 2. This Notice sets out guidance and instructions relating to trades impacted by this morning’s LMEmercury systems issue. The LME and LME Clear are grateful for the cooperation of Members in this process.
/jlne.ws/3vimcfa

LuxSE welcomes Philippine Minister of Finance
Luxembourg Stock Exchange
As part of a financial mission to Luxembourg, HE Benjamin Diokno, Minister of Finance of the Philippines, and his delegation visited the Luxembourg Stock Exchange (LuxSE) yesterday for an in-depth presentation of the Luxembourg financial centre. Along with representatives of the Luxembourg Ministry of Finance, Luxembourg for Finance, the Luxembourg Chambre of Commerce and the Luxembourg Investment Fund Association, LuxSE highlighted the unique strengths of the Luxembourg financial centre and potential areas of cooperation with the Philippines. Strong growth outlook. In 2022, the Philippines registered its highest GDP growth for more than four decades. According to forecasts by the World Bank, this year, the Philippines is on track to be the fastest-growing country of the ten nations comprising the Association of Southeast Asian Nations (ASEAN).
/jlne.ws/46KI5n1

List Of Deliverable Canadian Government Bond Issues For The LGB, CGB, CGF And CGZ Futures Contracts – Erratum
Montreal Exchange
For your information, please find enclosed the list of deliverable Canadian Government Bond issues with respect to the LGB, CGB, CGF and CGZ futures contracts delivery months. This list is produced in accordance with the Rules of Bourse de Montréal Inc. and Canadian Derivatives Clearing Corporation (CDCC) relating to delivery standards. This list replaces the one that was distributed on October 6, 2023 (circular no. 119-23).
/jlne.ws/3FseXVT

10 years of the Moscow Exchange precious metals market
MOEX
October 21, 2023 marked 10 years since the start of trading on the precious metals market of the Moscow Exchange. On this day, the first exchange transactions with gold and silver in Russian rubles were concluded. The precious metals market of the Moscow Exchange today is a meeting place not only for traditional market participants – banks, producers and consumers of gold and silver, but also for the largest retail brokers and management companies, as well as individuals. Today, more than 100 professional market participants have access to the precious metals market.
/jlne.ws/499MYHQ

Fintech

Liquidnet launches pre-trade analytics solution for listed derivatives; The move marks Liquidnet’s entry into the listed derivatives space and will offer actionable intelligence to better inform decision-making processes ahead of execution.
Wesley Bray – The Trade News
Liquidnet has launched a new pre-trade analytics offering for listed derivatives, available in Europe and the US. The new solution offers actionable intelligence including volume, liquidity, activity and projected volume to better inform the decision-making process ahead of execution. “Historically, banks have dominated the provision of solutions and execution services to the buy-side,” said Mike du Plessis, global head of listed derivatives at Liquidnet.
/jlne.ws/3QcqRYD

US orders immediate halt to some AI chip exports to China, says Nvidia; Fellow tech company Intel ‘reviewing regulations’ as timing of move brought forward
Reuters via The Guardian
The chip designer Nvidia has said the US has told it to immediately halt the export of some of its high-end artificial intelligence chips to China as regulators advanced the deadline.
/jlne.ws/3Q7nX7H

X, One Year Later: How Elon Musk Made a Mess of Twitter’s Business; Fewer workers. Fewer users. Less revenue. And a lot more misinformation.
Aisha Counts – Bloomberg
A year after Elon Musk bought Twitter because, he said, doing so was “important to the future of civilization,” he’s made the social media service smaller in almost every way. About 13% fewer users signed on each day in September, compared with last October, according to data firm Apptopia. The company employs about 1,500 people, down from 7,500 the day Musk bought it. And a platform that was once a key online gathering place for media professionals, political activists and news junkies is rapidly losing its relevance as a lively source of real-time information and debate.
/jlne.ws/45FcsKs

One Year On, Twitter Continues to Burn a Hole Through Bank Balance Sheets; Banks have begun preparations to try to unload at least some of the $13 billion of debt they underwrote, at a steep discount
Alexander Saeedy and Cara Lombardo – The Wall Street Journal
The banks that financed Elon Musk’s $44 billion purchase of Twitter are still struggling a year later to contain the damage to their balance sheets. Seven banks including Morgan Stanley , Bank of America and Barclays lent Musk around $13 billion to buy Twitter a year ago this coming Friday. Under normal circumstances, they would have unloaded the debt to Wall Street investment firms soon thereafter. But investor appetite for Twitter, which Musk has since renamed X, has cooled since the billionaire took over, forcing the banks to hold the debt on their own balance sheets at a discounted value.
/jlne.ws/472UgeH

Jupiter AM enlists Room Zero to optimise data management; Room Zero has consolidated more than 30 databases into one; partnership has a five-year tenor.
Claudia Preece – The Trade
Jupiter Asset Management has signed a five-year deal with asset management software provider Room Zero in order to optimise its operations across the business.
/jlne.ws/498JDsH

Tradeweb and FTSE Russell partner to offer enhanced fixed income pricing and index trading products; Fixed income closing prices will be derived from trading activity on Tradeweb’s platform and will be administered as benchmarks by FTSE Russell.
Wesley Bray – The Trade
Tradeweb Markets and LSEG’s FTSE Russel have entered a strategic partnership to develop enhanced fixed income index pricing and index trading products. The pair aim to offer improved pricing across a wider range of fixed income securities, which FTSE Russell will administer as benchmarks.
/jlne.ws/3rWWmhz

Leaders in Trading 2023: Meet the nominees for… Outstanding Market Data Provider; Learn more about the four firms shortlisted for The TRADE’s 2023 Editors’ Choice Award for Outstanding Market Data Provider: including big xyt, BMLL Technologies, Neptune Networks, and TP ICAP, Parameta Solutions.
Editors – The Trade
Next up in our introduction to the distinguished nominees for Leaders in Trading 2023 Editors’ Choice Awards, we bring you the shortlist for the Outstanding Market Data Provider category, shining a light on those displaying recent excellence in the data sphere.
/jlne.ws/3QdWiSm

Cybersecurity

LinkedIn Tests Generative AI to Field Cybersecurity Questions From Employees and Suppliers
Catherine Stupp – WSJ
LinkedIn is testing how generative artificial intelligence could help employees and external suppliers get answers about cybersecurity policies within seconds, potentially cutting wait times for business deals or decisions to implement new tools.
/jlne.ws/49j5UEq

How much cybersecurity expertise does a board need?
Ericka Chickowski – CSO Online
Whether a specific requirement or not, companies must either educate their board of directors in cybersecurity and risk management or look to recruit directors with specific cybersecurity experience to improve organizations response and decision-making.
/jlne.ws/3tJAJSq

CISA Offers Guidance on Cybersecurity Awareness Month’s 20th Anniversary
Elizabeth Blosfield – Insurance Journal
As the world’s digital ecosystem has grown and become more complex, Trent Frazier, deputy assistant director in the stakeholder engagement division at CISA, or the Cybersecurity and Infrastructure Security Agency, said on this episode of The Insuring Cyber Podcast that collaboration among government and industry will be key moving forward.
/jlne.ws/409Ox4x

How Cybersecurity Has Evolved In The Past 20 Years
Chris Novak – Forbes
Twenty years ago, the cloud as we know it didn’t exist. There were no Internet of Things (IoT) sensors. Not even Gmail was around. It’s well known that cyber threats and tactics used by cybercriminals have evolved significantly over the past two decades, but so have solutions. In honor of Cybersecurity Awareness Month, let’s take a look back to get a sense of how cybersecurity has evolved over the years and where we’re going next.
/jlne.ws/3QwrGgA

Cryptocurrencies

Crypto firms failing to spell out risks, says UK watchdog
Reuters
Britain’s financial watchdog said on Wednesday that firms marketing cryptoassets are failing to highlight risks properly to consumers, such as by publishing warnings that are too hard to read. Britain’s Financial Conduct Authority had new powers from Oct. 8 to regulate cryptoasset promotions, and said it has found three common issues so far, and will take action if they are not remedied. The FCA said that promotions were making claims about safety, security and ease of using cryptoasset services without highlighting the risks involved.
/jlne.ws/494J6YS

Exclusive: Binance is behind the Hong Kong crypto exchange HKVAEX, which is seeking a licence in the city, sources say
Matt Haldane, Xinmei Shen – SCMP
Binance, the world’s largest cryptocurrency exchange, is behind a newly established cryptocurrency trading platform in Hong Kong that has announced its intention to apply for a licence in the city, according to sources familiar with the matter.
/jlne.ws/491wvWt

Crypto lender BlockFi begins post-bankruptcy wind-down
Reuters
BlockFi emerged from bankruptcy on Tuesday, saying it will wind down operations and begin returning crypto assets to customers 11 months after it was swept away by the turbulence in the cryptocurrency industry following FTX’s collapse. Jersey City, New Jersey-Based BlockFi will continue to pursue additional payments through the bankruptcies of other crypto companies including FTX and Three Arrows Capital under a bankruptcy plan approved in court last month.
/jlne.ws/3tJHfse

CFTC Commissioner Mersinger Discusses Spot Bitcoin ETF Optimism, Crypto Regulation
CoinDesk
As part of CoinDesk’s State of Crypto 2023 event in Washington, D.C., CFTC Commissioner Summer K. Mersinger shares insights into the state of U.S. crypto regulation and also explains why she’s “not surprised” about spot bitcoin ETF excitement fueling market optimism. Plus, Mersinger weighs in on the regulator recently targeting three decentralized finance (DeFi) operations and Binance renewing its push to fend off charges from the CFTC.
/jlne.ws/3MgSxL3

North America retains crypto crown even as US regulatory clouds loom: Chainalysis
Jenny Ortiz – Forkast
North America maintained its position as the world’s largest cryptocurrency market with an estimated US$1.2 trillion in on-chain value received from July 2022 to June 2023, according to blockchain intelligence firm Chainalysis. North America represents almost a quarter of global transactions with over US$1 trillion originating from the United States, Chainalysis said in its report published Monday.
/jlne.ws/3MguITk

Binance challenges CFTC’s global reach in legal clash
Forkast.News
/jlne.ws/3tLs8P3

BlackRock Settles SEC Charges as Crypto Community Awaits Bitcoin ETF Decision
Hope C – CoinMarketCap
/jlne.ws/45KfEED

Former top crypto regulator moves to $8 billion startup Fireblocks as director of digital identity
Ben Weiss – Fortune
/jlne.ws/45LSPQM

Politics

U.S. Crypto Regulation Outlook as Tillis, Hickenlooper Introduce New Bill
CoinDesk
As part of CoinDesk’s State of Crypto 2023 event in Washington, D.C., Galaxy Digital Head of Firmwide Research Alex Thorn discusses the significance Senators Thom Tillis (R-NC) and John Hickenlooper (D-CO) introducing the Proving Reserves of Others Funds, also known as the “PROOF Act.” “It would add significant consumer safety and transparency to the industry,” Thorn said. “It would directly address some of the blow-ups from last year.”
/jlne.ws/3SbbJgU

AI Backlash May Bring Social Unrest to UK, Infosys Boss Says; More jobs could be done by technology by the end of the decade; Remarks set out the stakes for Sunak’s AI summit next week
Lucy White – Bloomberg
The UK has about three years to come up with rules to reassure people about artificial intelligence before wrenching changes in the way work is done unleashes the potential for social unrest, an industry expert said. Martin Weis, managing partner and global co-lead for AI at Infosys Consulting, said about 30% of the hours people put in on the job in places like the US and Britain could be done by technology by 2030. Back-office tasks, administration are most likely to be affected, threatening to upend millions of jobs.
/jlne.ws/3tJjgJD

Regulation

Significant Changes Proposed to CFTC Rule 4.7 ‘Registration Lite’
Christian B. Hennion, Mia Hayes of Katten – National Law Review
For the last three decades, CFTC Regulation 4.7 has provided registered CPOs and CTAs with exemptions from certain compliance requirements under Part 4 of the Commodity Exchange Act, in their dealings with investors and clients that are “qualified eligible persons” (or “QEPs”) under that rule. The widespread reliance upon Regulation 4.7, which eliminates many of the disclosure obligations that would otherwise apply under CFTC rules, has led the CFTC to reassess whether the provisions of the rule continue to align with the purposes motivating its adoption, culminating in a proposal to implement substantial amendments to the rule.
/jlne.ws/3tJG3oK

Ceres fined by CFTC for oats trades
John Reidy – World Grain
Ceres Global Ag Corp. has agreed to pay a civil penalty of $3 million to the Commodity Futures Trading Commission (CFTC) to settle charges of attempting to manipulate the oats futures contracts in 2016 and 2017. Ceres said the company had been cooperating with the CFTC and Department of Justice since they began probing the situation in 2021.Ceres said it does not currently anticipate any other charges or fines arising from the investigation.
/jlne.ws/3Fswa1o

Big Banks Face Fresh Anti-Redlining Rules From Top US Regulators
Katanga Johnson – Bloomberg
Top US banking regulators have updated decades-old rules that are meant to tackle redlining and boost lending to lower-income areas. Under Tuesday’s plan, the landmark 1977 Community Reinvestment Act will for the first time cover online and mobile banking services. That means the grades that regulators give firms for lending to low- and moderate-income communities won’t be based just on the locations of physical branches. The overhaul will also stiffen other criteria for big lenders.
/jlne.ws/45KnyxB

Commissioner Pham to Deliver a Keynote Address at the ISDA Annual Legal Forum
CFTC
/jlne.ws/498CVmv

SEC Charges BlackRock with Failing to Properly Disclose Investments by Publicly Traded Fund it Advised
SEC
The Securities and Exchange Commission today charged BlackRock Advisors, LLC, an investment adviser, for failing to accurately describe investments in the entertainment industry that comprised a significant portion of a publicly traded fund it advised. To settle the charges, BlackRock agreed to pay a $2.5 million penalty.
/jlne.ws/3MfJt99

Remarks at New York City Bar Association Compliance Institute
Gurbir S. Grewal – SEC
I’d like to start by returning to a theme that I’ve touched on before, and that is how public trust in our institutions is faltering. No sector is immune from this trend. From Congress to law enforcement to the courts, these levels are at, or below, historic lows. Studies also show that only a small percentage of Americans have any significant level of confidence in banks, technology companies, or big business.
/jlne.ws/45LTr92

FCA warns about common issues with crypto marketing
FCA
A change in legislation has brought cryptoasset promotions under our remit. From 8 October, we have been supervising firms against the new regime that is designed to give consumers the right information and risk warnings.
/jlne.ws/3Qdbuze

Europe’s Money Markets Are on Alert for Stricter ECB Bank Reserve Rules; ECB has paid zero interest on minimum reserves since Sept. 20; Commerzbank, Barclays say MRR could be doubled to 2% this week
Alice Gledhill – Bloomberg
Speculation is building over whether European lenders will be forced to park more cash with the central bank, a move that may hit their profitability and increase volatility in short-term euro rates. Strategists at firms including Commerzbank AG, Barclays Plc and UBS Group AG have warned the European Central Bank could surprise markets and increase the so-called Minimum Reserve Requirements, or MRR, as soon as this week as it seeks to reduce costs and drain excess liquidity.
/jlne.ws/46Jl58a

Investing and Trading

Kevin Durant-Led SPAC to Shut After Deal Hunt Fails
Bailey Lipschultz – Bloomberg
Infinite Acquisition Corp., a blank-check firm led by NBA star Kevin Durant and his business manager, Rich Kleiman, plans to close and return the money it raised to investors after its deal hunt failed.
/jlne.ws/45LvXAQ

Chevron-Hess Deal Leaves Midstream Firm’s Future in Question
Devika Krishna Kumar and Kevin Crowley – Bloomberg
Chevron Corp.’s mega deal to acquire Hess Corp has thrown into question the future of Hess Midstream Partners. The terms of the deal so far do not specify whether Chevron will purchase Hess Midstream LP, which transports crude, gas and water in and around North Dakota. Chevron has said it would target divestments of about $10-$15 billion, but hasn’t said what could be included.
/jlne.ws/407fFkN

New Age for Treasuries Means 6% Yield Isn’t ‘Out of the Picture’
Liz Capo McCormick and Elizabeth Stanton – Bloomberg
On Monday, the 10-year Treasury yield climbed over 5%, a 16-year high. It’s a level few would have predicted during the long run of rock bottom interest rates that followed the Great Financial Crisis. The yield swiftly retreated, perhaps as investors closed out short bets against bonds that paid off in recent weeks. But the Monday morning milestone underscored a troubling reality: a new era appears to be dawning in the US Treasury market – and it’s shredding confidence in any predictions for where yields will peak.
/jlne.ws/3rWS5L3

A Small ETF Defies Historic Bond Rout With 200% Return
Ye Xie – Bloomberg
Few bond funds have done better amid the fixed-income market’s record losses than Harley Bassman’s small ETF, which has tripled in value since the start of last year. The roughly $270 million Simplify Interest Rate Hedge ETF (PFIX) is up 39% over the past year, more than any other bond ETF or mutual fund in the US, data compiled by Bloomberg show. Since the end of 2021, just before the Federal Reserve started to jack up borrowing costs, it has returned around 200%.
/jlne.ws/473UodX

Credit Markets Haven’t Broken Yet, But They’re Budging; The critical signs coming from small caps are too big to ignore. Plus, the real lesson from Bill Gross that investors need to take on board.
John Authers – Bloomberg
When the Credit Breaks
If something needs to break before the Federal Reserve relents and bond yields start to fall, what is it going to be? Back in March, it looked as though the backup in bond yields had broken something really important: the regional banking system. Several banks proved to have taken on too much interest-rate risk. Rescues, fire sales, and a Fed program to lend money to keep them liquid ensued.
/jlne.ws/40cYM8w

Private Equity Wants a Piece of Your Retirement Savings; Firm gains access to vast IRA wealth through Schwab, Fidelity; More baby boomers are converting retirement funds into IRAs
Miles Weiss – Bloomberg
/jlne.ws/40ekd8X

Tradeweb and FTSE Russell partner to offer enhanced fixed income pricing and index trading products; Fixed income closing prices will be derived from trading activity on Tradeweb’s platform and will be administered as benchmarks by FTSE Russell.
Wesley Bray – The Trade News
/jlne.ws/3rWWmhz

Environmental, Social and Corporate Governance

Q&A: How Chicago’s Chief Sustainability Officer, a Southeast Side Native, Plans to Tackle Environmental Racism; Angela Tovar says her experiences growing up near “Slag Valley” deeply influence her approach to reform practices that have disproportionately burdened communities like the one she was raised in.
Aydali Campa – Inside Climate News
Chicago is at a crucial moment as city officials and community leaders take the first steps to tackle environmental discrimination after a federal investigation revealed how the city’s zoning and planning practices have disproportionately placed polluting businesses in predominantly Black and Hispanic communities in the South and West Side. At the center of this endeavor is Angela Tovar, who grew up in Chicago’s Southeast Side. Tovar’s family was part of a wave of immigrants in the first half of the 20th century who moved to the area to work in the steel mills. Residents of the Southeast Side have been overburdened by economic challenges from the steel industry’s decline and the health risks posed by the legacy of toxic waste left behind.
/jlne.ws/45JGAnY

The Real Cost of Plundering the Planet’s Resources; Our accelerating rates of extraction come with immense ecological and social consequences.
Elizabeth Kolbert – The New Yorker
The town of Spruce Pine, North Carolina, doesn’t have a lot to say for itself. Its Web site, which features a photo of a flowering tree next to a rusty bridge, notes that the town is “conveniently located between Asheville and Boone.” According to the latest census data, it has 2,332 residents and a population density of 498.1 per square mile. A recent story in the local newspaper concerned the closing of the Hardee’s on Highway 19E; this followed an incident, back in May, when a fourteen-year-old boy who’d eaten a biscuit at the restaurant began to hallucinate and had to be taken to the hospital. Without Spruce Pine, though, the global economy might well unravel.
/jlne.ws/45OZ6ey

Green fintech ecosystem in Hong Kong and other Apec economies needs standardised reporting framework and regional collaboration, Ant Group-backed report says
Martin Choi – South China Morning Post
The development of a green fintech ecosystem in the Asia-Pacific region requires a standardised sustainability reporting framework and regional collaboration, according to an industry report. The complex green fintech landscape across Hong Kong, Indonesia, Singapore, Thailand and South Korea requires standardised best practices for the alignment of their respective ecosystems, according to the “Green Fintech Report 2023”, which was published by GoImpact Capital Partners, the Chinese University of Hong Kong Business School and Ant Group on Tuesday. Ant is an affiliate of Alibaba Group Holding, which owns the Post.
/jlne.ws/3QFtxQl

Investors Flee ESG Funds Without Clear Targets, Morningstar Says
Frances Schwartzkopff – Bloomberg
Investors in Europe are dumping ESG funds that lack clear sustainability goals, as the market braces for a major overhaul of environmental, social and governance regulations. More than 20 billion euros ($21 billion) flowed out of so-called Article 8 funds in the third quarter, bringing exits over the last six months to 42 billion euro, according to a report by Morningstar on Wednesday. The researcher said the exodus disproportionately affected funds with weak sustainability targets. Meanwhile, funds with tougher ESG investment requirements saw inflows of 1.4 billion euro.
/jlne.ws/3SdnEuv

UN science body head fears lower chance of keeping global warming to 1.5C; Rise in emissions since original IPCC report 2 years ago now means less than one-third probability of hitting target
Attracta Mooney – Financial Times
The chances of the world limiting the rise in global temperatures to 1.5C since pre-industrial times are now less than the one-third to one-half predicted in the last landmark report by UN’s climate science body, its new chair said. British academic Jim Skea, who has taken over as chair of the UN Intergovernmental Panel on Climate Change, said the continued rise of greenhouse gas emissions since its 2021 report had reduced the chances of curbing global warming.
/jlne.ws/496Fp4K

To Save Solar Panels From Landfills, Startup Is Smashing Them Instead; Up to 90% of solar panels end up in landfills. This startup has built a profitable business recycling them instead.
Will Wade – Bloomberg
/jlne.ws/45LSAVS

China Set to Release Long-Awaited Methane Plan Before COP28; The world’s largest source of methane has promised to lay out how it will reduce emissions of the potent greenhouse gas.
Bloomberg News
/jlne.ws/46K8ykH

Carbon Removal Isn’t Just for Corporations. Individuals Are Paying For It, Too; A growing number of people are buying the services of companies that promise to suck carbon pollution from the air.
Coco Liu – Bloomberg
/jlne.ws/3FwAoF3

Institutions

Hedge fund Brevan Howard hired 300 new people
Sarah Butcher – Efinancialcareers.com
It’s been another year of heavy hiring at big multistrategy hedge funds and their aspirants. As we reported last week, Eisler Capital Management has increased its investment teams by 50% to 60 this year, while its population of strats (hybrid quants and technologists) is up 60%. Eisler is not alone in raking in staff: Brevan Howard has increased its headcount by circa 40% too.
/jlne.ws/46KwdBz

Deutsche Bank Vows More Payouts as Sewing Targets Share Price
Steven Arons – Bloomberg
Deutsche Bank AG said it will accelerate payouts to shareholders as Chief Executive Officer Christian Sewing seeks to lift the lender’s stock and close a valuation gap with peers.
/jlne.ws/40bOHbB

Deutsche Bank Chief Says More Job Cuts Coming;Head count has increased despite 800 cuts announce in April; CEO Sewing expects the workforce should shrink from here
Steven Arons – Bloomberg
Deutsche Bank AG is starting another round of job cuts as Chief Executive Officer Christian Sewing doubles down on efforts to lower expenses and lift profitability. The new measures are expected to exceed a previous round of cuts unveiled six months ago, when Sewing announced that 800 senior roles would be eliminated, he told analysts on Wednesday. The German lender’s headcount has grown by more than 4,000 this year, despite the April announcement.
/jlne.ws/3Fw83yN

Deutsche Bank’s Dealmakers Are Under Pressure; The German lender is returning capital, but investment banking is still a drag.
Chris Hughes – Bloomberg
The March collapse in Deutsche Bank AG’s shares amid fears it would be the next victim of the US banking crisis is now a distant memory. The German lender on Wednesday said it was in such good shape it could afford to accelerate payouts to shareholders. But Deutsche Bank’s biggest businesses – including the investment bank – remain a drag on shareholder returns. Chief Executive Officer Christian Sewing still has revenue challenges and cost problems to address.
/jlne.ws/3FvkHhr

Wells Fargo Ousted From Texas Muni Deal Over Energy Policy Probe
Nic Querolo and Amanda Albright – Bloomberg
Wells Fargo & Co. has been dropped from underwriting a school district bond deal in Texas, the latest sign of turmoil in the state’s ongoing battle with banks over their climate change policies. Raymond James is listed as the new senior manager on the $310 million bond deal for Cypress-Fairbanks Independent School District, based outside of Houston, according to people familiar with the matter who requested not to be identified because they aren’t authorized to speak on the discussions.
/jlne.ws/3FwS9nW

UBS Hands Qatari Sheikh $9 Billion Credit Line in Mideast Push; UBS agrees line for Sheikh Hamad bin Jassim bin Jaber Al Thani; UBS seeking to make inroads serving Middle East’s ultra rich
Marion Halftermeyer and Dinesh Nair – Bloomberg
/jlne.ws/45Kj9La

UBS to Lay Off Credit Suisse Investment Bankers in Spain; Lender starts restructuring process involving 147 roles; UBS will rehire more than a handful of investment bankers
Macarena Munoz Montijano – Bloomberg
/jlne.ws/46PG4q0

Work & Management

The biggest career mistakes to avoid from ex-Microsoft VP of HR
Jenna Gyimesi – Insider
Chris Williams is the former VP of HR at Microsoft. In his more than 40 years in business and leadership, he’s seen employees and leaders make the same ill-advised decisions, regardless of seniority.
/jlne.ws/3Qx3OsU

A college graduate who just started her first job shared the shock and upset of working a 9-to-5 Andrew Lloyd – Insider
Viewers rallied around a graduate who shared how upset she was about her first office job out of college, and the lack of time she had for a personal life or basic chores by the time she got home. On October 19, a TikToker named Brielle who recently started a corporate job in the New York area, posted a video where she appeared visibly upset as she addressed the camera. The on-screen caption that read, “in a 9-5 how do u have time for ur life.”
/jlne.ws/3s4vBYn

Wellness Exchange

Picking health insurance can be tricky: 6 key terms to know as open enrollment starts
Greg Iacurci – CNBC
Many people will soon be picking their health insurance plans for 2024: November is a common month for workplace open enrollment, and the public marketplace opens Nov. 1. But choosing a health plan can be tricky. In fact, a 2017 study found many people lose money due to suboptimal choices: Sixty-one percent chose the wrong plan, costing them an average $372 a year. The paper, authored by economists at Carnegie Mellon University and the Wisconsin School of Business, examined choices made by almost 24,000 workers at a U.S. firm.
/jlne.ws/3tOHDpp

Want to stay strong as you get older? Maybe you should have another cuppa; Coffee and tea lovers are significantly less likely to be frail in their 70s, according to a study that followed 12,000 people over 20 years
The Guardian
Name: Caffeine. Age: Let’s say 1,173 years, because the nicest story about its discovery involves an Ethiopian goatherd named Kaldi who, circa 850, noticed increased activity in his goats after they had eaten coffee beans.
/jlne.ws/45KVHxl

Health workers face mental health crisis, CDC says
Giri Viswanathan – CNN
Researchers from the US Centers for Disease Control and Prevention are sounding the alarm on a mental health crisis for health workers around the country. Using nationwide survey data between 2018 and 2022, a new report from the agency found that nearly half of health workers reported feeling burned out in 2022, up from under a third four years prior. Health workers’ reports of being harassed at work more than doubled, as well. The report, released on Tuesday, also shows that health workers face worse mental health outcomes than employees in other industries.
/jlne.ws/49abSqQ

This $1,000 Test Finds Signs of Cancer in Your Blood; The Galleri test is designed to detect more than 50 cancers. Doctors are split on whether it is worth the risks for patients.
Alex Janin – The Wall Street Journal
Doctors, researchers and patient advocates are excited about a new blood test that promises to detect cancer early. They disagree about whether you should actually use it yet. The $949 Galleri liquid biopsy can screen for more than 50 types of cancers. It works by looking for a shared cancer signal in DNA shed by tumors in the bloodstream. More than 130,000 of the prescription-only tests have been sold since Galleri became available in June 2021, according to the test maker Grail, a unit of the gene-sequencing company Illumina.
/jlne.ws/3QyTIIo

Regions

China Signals Zero Tolerance For Sharp Economic Slowdown With Rare Steps; Moves show sense of urgency amid persistent housing downturn; Support package remains conservative at about 0.8% of GDP
Tom Hancock – Bloomberg
Chinese President Xi Jinping signaled that a sharp slowdown in growth and lingering deflationary risks won’t be tolerated, making a series of rare policy moves to boost the economy while refraining from massive stimulus.
/jlne.ws/45Jclxp

West African Players Target June for Unified Capital Market Rule
Emele Onu – Bloomberg
Debt and stock market players in West Africa plan to complete the harmonization and validation of regulation for trading and settlement of securities by June, Lamido Yuguda, chairman of West Africa Securities Regulators Association, said at a conference in Lagos.
/jlne.ws/46HSNLj

Brazil Is In Talks for $2 Billion in Funding to Boost Crop Land
Dayanne Sousa – Bloomberg
Brazil is in talks with international investors to get 10 billion reais ($2 billion) in funding before the end of the year as the agriculture powerhouse works to recover degraded pastureland to boost crop acreage. The plan is to use the money to establish loans for farmers starting in 2024, Roberto Perosa, secretary of commerce and international relations at the nation’s agriculture ministry, said in an interview on the sidelines of an industry conference in Sao Paulo. The ongoing negotiations for funding include talks with sovereign funds, as well as other government-controlled entities in Asia and the Middle East, he said.
/jlne.ws/3MfnTlk

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