Green Exchange Seeks to Jump on ESG Bandwagon

Sep 14, 2022

First Read

Hits & Takes
John Lothian & JLN Staff

The CME Group loves challenges and the latest is a Micro Cryptocurrency Futures Trading Challenge. During this hands-on, risk-free trading challenge, you can compete against other traders to win cash prizes. And if you are new to trading, the CME Group will provide educational materials and tips from veteran futures and options trader Jim Iuorio. You are trading in a simulated environment while competing for the top spot in the competition. The event runs from September 25 to 29, so sign up soon.

Paul Tudor Jones has done a lot during his long trading career and made billions, but he is just like the rest of us. He likes to play fantasy football. According to a Wall Street Journal story, he and his son Jack, a data scientist, had a notion there might be a smarter way to build a football roster for their fantasy football team. Their solution was so good, they applied it to the real NFL by forming a company, SumerSport, “led by chief executive officer Thomas Dimitroff, the former general manager of the Atlanta Falcons.” The technology the Joneses built will help NFL teams’ decision making through free agency and the draft to help them select the best roster of players possible.

SDX, the digital securities exchange and depository of SIX, posted a commentary titled “The Ethereum Merge is coming – Ethereum Mainnet will upgrade from a proof-of-work to a proof-of-stake consensus mechanism, the Beacon Chain, in mid-September 2022.”

From Chicago to Brussels, FIA is busy. FIA is holding an FIA Forum, Brussels 2022 on September 20 at Freshfields Bruckhaus Deringer. The program will discuss “regulatory and industry developments impacting the use of listed and cleared derivatives in Europe. Attendees will hear about key regulatory priorities and how the industry is responding.” You can learn more and register HERE.

FIS is off to the Metaverse on Thursday, September 15, when they hold their FIS Perspectives program titled “The Web3 Journey from Crypto to the Metaverse.” The program starts at 11 a.m. ET in this universe. You can register HERE.

CME Group has been named the Americas Derivatives Exchange of the Year by GlobalCapital.

Les Male is leaving DGCX as CEO to become the CEO at ELEM Capital, a global management consultancy headquartered in Dubai.

Amy Peters is starting a new position as vice president, execution services at Phillip Capital Inc. She was previously with ABN AMRO Clearing Chicago for nine years.

Dan Rather had a bad pun on Twitter regarding the My Pillow CEO having his cell phone seized by the FBI. Rather said, “Apparently the Feds are on the case.”

Don’t expect to be able to get a Big Mac on Monday, the day of Queen Elizabeth II’s funeral. McDonald’s announced they will be closing all their stores in the UK as a show of respect for the long serving monarch.

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

*****

The STA Women in Finance Committee will present the 7th Annual STA Women in Finance Symposium, held in conjunction with STA’s 89th Annual Market Structure Conference, in October. The Symposium will kick off STA’s Market Structure Conference with a luncheon/presentation/networking event Wednesday, Oct. 12 11:30 a.m. – 1:00 p.m. at the JW Marriott Washington DC, Penn Avenue Terrace. You can go here to register.~SR

++++

MWE SHORT: Gary Barnett – Considerations in Decision-making
JohnLothianNews.com

In this video from MarketsWiki Education’s World of Opportunity event in New York, Gary Barnett, deputy director, division of trading and markets with the Securities and Exchange Commission, explains the importance of decision-making. Barnett studied philosophy in college and was great with numbers and understood cash flow, but avoided public speaking. He quickly realized it was a fear he needed to conquer. The ability to stay flexible and have a decent amount of humility while always being creative are Barnett’s keys to success.

Watch the video »

++++

Forget quiet quitting: the latest work trend is 2 or more jobs — without any bosses knowing
Pete Evans – CBC News
Like many Canadians, a woman we’ll call Mary was looking for a little extra income during the pandemic, to offset the rising cost of living. But instead of turning to the traditional options of working some overtime, freelancing a little or starting up an unrelated side hustle, she and her partner took things a little further by each getting a second, full-time job in their field — without leaving their first one, or telling either boss about it. They are not alone. Mary and her partner, who have been granted anonymity to conceal their identities, are part of a growing trend that’s being called overemployment. And there’s a website — overemployed.com — to help remote workers do it.
/jlne.ws/3BdTHAw

****** Does my multi-level marketing of dachshunds count as a second job?~JJL

++++

Trudeau declares federal holiday for Queen’s funeral – but most Canadians will have to work
Leyland Cecco – The Guardian
Justin Trudeau has declared a federal holiday for the state funeral of Queen Elizabeth II, granting a handful of employees across Canada a day off. But because most workers fall under provincial jurisdiction, much of the country was given little indication if they’re expected to show up to work Monday.
/jlne.ws/3BF4jtB

******No parade and no fireworks either. ~JJL

++++

Sam Bankman-Fried made $45mn bet on SkyBridge with crypto strings attached; Anthony Scaramucci says FTX backing means ‘people don’t think you’re going out of business’
Madison Darbyshire and Ortenca Aliaj and Joshua Oliver – Financial Times
Sam Bankman-Fried paid about $45mn for a 30 per cent stake in SkyBridge Capital, the vast majority of which was immediately invested in cryptocurrencies as part of a deal to shore up confidence in Anthony Scaramucci’s fund business. The agreement valued SkyBridge at roughly $150mn, said two people familiar with the terms, but was made on the provision that $40mn of the proceeds were put towards the crypto bets. The fund of funds manager was valued at roughly $200mn in 2017.
/jlne.ws/3Bfv1HR

***** No offense to my pal Anthony, but I would include strings as well in a deal for $45mn with a guy who lasted ten days in a job in the White House. It is water under the bridge and ancient history by this point, but due diligence is due diligence. ~JJL

++++

The mechanics and mayhem of autocallables; How South Korean savers can rattle global markets
Russell Clark – Financial Times
The post-financial crisis era of low interest rates triggered an explosion of engineered savings products for customers desperate for steady returns. But as interest rates rise, some of these financial structures are beginning to creak. Autocallables — or structured products as they are known in Europe — are a typical of the funky vehicles that flourished in the low interest rate period that now looks like it is coming to and end. They are products mainly sold to retail investors as a yield-rich alternative to rock-bottom deposit rates. A typical structure involves offering to pay a 5 to 10 per cent yield as long some large benchmark equity index does not fall more than 40 per cent or rise more than 10 per cent.
/jlne.ws/3S3nW3X

****** South Korean investors are the butterflies of today’s financial markets.~JJL

++++

Tuesday’s Top Three
Our top story Tuesday was the FIA’s Resources related to Queen Elizabeth II’s state funeral; Links and notices from government and industry sources regarding the 19 September event. Second was the LinkedIn post from Jeff Gilfillan, vice president, business development at Phillip Capital, thanking the FIA for “another great golf outing” which raised “30k+ for Greater Chicago Food Depository and the Greenwood Project.” Third was A sceptic’s guide to crypto: the crypto Wild West, an FT Tech Tonic podcast from Jemima Kelly.

++++

MarketsWiki Stats
27,002 pages; 240,647 edits
MarketsWiki Statistics

++++

Lead Stories

Green Exchange Seeks to Jump on ESG Bandwagon
Alexander Osipovich – The Wall Street Journal
A startup run by New York Stock Exchange veterans is seeking the SEC’s blessing to launch a new exchange catering to environmentally minded companies and investors. The new marketplace is expected to launch in 2023, pending the agency’s approval, Green Exchange PBC said in a press release Wednesday. The exchange will be called Green Impact Exchange, or GIX, and it plans to adopt listing standards that emphasize good environmental governance. Under GIX’s proposed model, companies wouldn’t need to leave their main exchange to list on the Green Impact Exchange; instead, they could be dual-listed on either the NYSE or Nasdaq as well as GIX. The Long-Term Stock Exchange has pursued a similar model, but has only attracted a handful of companies.
/jlne.ws/3qAHFMD

Digital Asset Exchange EDX Markets Launches with Backing from Leading Broker-Dealers, Global Market Makers and Venture Capital Firms
EDX Markets
A consortium of leading broker-dealers, global market makers and venture capital firms today announced the launch of EDX Markets (EDXM), a first-of-its-kind exchange that will address latent demand for digital asset trading by enabling safe and compliant trading of digital assets through trusted intermediaries. The new exchange will combine proven technology provided by MEMX with best practices from traditional financial markets and tighter spreads enabled by greater liquidity, to support secure, fast and efficient cryptocurrency trading for U.S. retail and institutional investors.
/jlne.ws/3RI266t

Fidelity, Schwab, Citadel Securities Plan to Launch New Crypto Exchange
Alexander Osipovich – The Wall Street Journal
A consortium of financial heavyweights including electronic trading giant Citadel Securities and brokerages Fidelity Investments and Charles Schwab Corp. on Tuesday announced plans to launch a new cryptocurrency exchange. The launch of the exchange, to be called EDX Markets, is a sign that Wall Street continues to see opportunity in digital assets despite this year’s slump. Other backers of the new exchange include high-speed trading firm Virtu Financial Inc. and venture-capital firms Sequoia Capital and Paradigm.
/jlne.ws/3eD1KiE

Ordered Chaos: Why the CoinDesk Market Index Matters for the New Economy
Jodie Gunzberg, Michael J. Casey – CoinDesk
For a viable capital market to form around a nascent industry, investors need a standardized, broad-based benchmark against which to measure and assess performance. Without it, they are flying blind. With the newly launched CoinDesk Market Index (CMI), CoinDesk Indices (CDI) is seeking to resolve that challenge for investors in digital assets. The CMI brings a clarity of vision that was previously lacking from the sprawling, opaque, poorly categorized crypto economy.
/jlne.ws/3DqO4lq

Commodity Markets Contend With a Growing Liquidity Crisis; Aggregated open interest in oil futures hit lowest since 2015; Rising collateral requirements lower holdings of gas contracts
Alex Longley and Yongchang Chin – Bloomberg
Commodity markets are struggling to shake their months-long liquidity crisis that’s brought an era of erratic swings in the value of the world’s raw materials. The giant price fluctuations that followed Russia’s invasion of Ukraine roiled markets for everything from natural gas to crude oil and metals. Trading activity in most raw material markets has sunk to low levels. Open interest in oil last week hit the lowest since 2015, while natural gas, sugar and aluminum futures holdings all remain at or near the lowest levels in years.
/jlne.ws/3DoFvre

CME Group launches options on Ether futures; New options build upon the group’s existing crypto product suite, which includes Bitcoin and micro-sized Bitcoin options.
Wesley Bray – The Trade
Derivatives marketplace CME Group has launched new options contracts based on Ether futures. The new contracts deliver one ether future, sized at 50 ether per contract, representing a full-sized version of the group’s existing micro-sized ether option. They will be based on the CME CF Ether-Dollar reference rate, which serves as a once-a-day reference rate if the US dollar price of ether.
/jlne.ws/3RJtpNH

Binance Sued in Italy Over Exchange Outages, Hearing This Week
Sandali Handagama – CoinDesk
Global cryptocurrency exchange Binance is due to appear in an Italian court on Thursday over a class-action lawsuit filed by a group of investors seeking damages for losses suffered during platform outages at critical trading times last year. A group of Italian and international Binance users filed suit against the company and CEO Changpeng Zhao in November 2021, citing multiple incidents when the platform went offline and locked users out of the exchange. The investors allege the outages made it impossible for them to change their trading positions and led to “tens of millions” in losses.
/jlne.ws/3BEccja

Schwab, Citadel Securities, Fidelity, Other Wall Street Firms Start Crypto Exchange EDX Markets
Parikshit Mishra – CoinDesk
Financial heavyweights including Charles Schwab (SCHW), Citadel Securities and Fidelity Investments announced the start of cryptocurrency exchange EDX Markets, the latest evidence Wall Street is forging ahead in digital assets despite the crypto winter. The exchange will be led by CEO Jamil Nazarali, formerly a senior executive at Citadel Securities, billionaire Ken Griffin’s massive trading operation. Other high-profile EDX backers include trading firm Virtu Financial (VIRT) and venture-capital firms Sequoia Capital and Paradigm.
/jlne.ws/3QHxJvp

Wall Street Titans’ New Crypto Exchange Aims to Seriously Cut Costs for Investors
Nick Baker – CoinDesk
A new cryptocurrency exchange forged by some of Wall Street’s biggest players has ambitious plans to dramatically reduce how much traders pay to buy and sell digital assets. It will initially focus on only a “handful” of tokens including bitcoin (BTC) that its lawyers are confident aren’t securities – thus avoiding a regulatory drama still playing out in Washington. The firm, EDX Markets, is backed by the two largest U.S. retail brokers, Charles Schwab (SCHW) and Fidelity Investments (through its digital-assets arm). Citadel Securities and Virtu Financial (VIRT), two of the biggest trading firms in U.S. stocks, and investment firms Paradigm and Sequoia Capital are also supporting the venture, and EDX expects others to join the group.
/jlne.ws/3qywg03

US Says Russia Covertly Spent $300 Million to Sway Foreign Votes; Intermediaries included security services and oligarchs; Countries targeted include Albania, Bosnia and Montenegro
Courtney McBride – Bloomberg
Russia has secretly funneled more than $300 million to foreign political parties and candidates since 2014 in an effort to influence elections in more than two dozen countries, a senior US official told reporters. Russia transfers the funds — cash, cryptocurrency and non-monetary contributions — using intermediaries including security services, oligarchs and supposedly independent foundations or think tanks, the State Department said in a note to dozens of US embassies that was shared with reporters.
/jlne.ws/3eSEAVS

Binance CEO Zhao Says EU’s Proposed Crypto Rules Are Fantastic But Strict
Jamie Crawley – CoinDeskChangpeng “CZ” Zhao, founder and CEO of crypto exchange Binance, says the European Union’s landmark Market in Crypto Assets (MiCA) regulation is “a little bit strict” on stablecoins, which are cryptocurrencies pegged to the value of other assets like gold or the U.S. dollar. “The drafts are not adopting USD-based stablecoins, which have 75% of the liquidity in the market,” Zhao said at Binance Blockchain Week in Paris on Wednesday.
/jlne.ws/3QK6ujM

A $3.8 Billion Hudson Yards Skyscraper Lands New Finance Tenants; Truist, Vista Equity sign leases at 50 Hudson Yards, a New York tower where Meta’s Facebook has offices.
Natalie Wong – Bloomberg
Related Cos. has landed new tenants at 50 Hudson Yards ahead of its opening later this year. The $3.8 billion skyscraper, which counts Meta Platforms Inc. as a major tenant, has signed new and expanded leases with a handful of finance and tech companies in recent months including a Truist Financial Corp. business, Vista Equity Partners and ServiceNow Inc., according to a person familiar with the matter who asked not to be named citing details about the leases.
/jlne.ws/3d7gAhf

Soaring Rents Are a Nightmare for the Fed, Markets, Humanity; They’re boosting consumer prices, inspiring jumbo rate hikes and spreading general misery.
Mark Gongloff – Bloomberg
Today’s CPI report reminded me of the old joke about the kid who wakes up on Christmas morning, sees a huge pile of horse manure under the tree and begins digging through it. When his parents ask him what on earth he’s thinking, he says, “There’s got to be a pony in here somewhere!” Driven by soaring rents, consumer inflation in August was certainly a mountain of unpleasantness for both Wall Street and Main Street. It dashed hopes the Fed would ease off on rate hikes and painted a picture of an economy besieged by stubbornly rising prices everywhere. We all dug through it looking for the pony, but just came up empty. And dirty.
/jlne.ws/3QGBZLN

World heading into ‘uncharted territory of destruction’, says climate report; Governments and businesses failing to change fast enough, says United in Science report, as weather gets increasingly extreme
Fiona Harvey – The Guardian
The world’s chances of avoiding the worst ravages of climate breakdown are diminishing rapidly, as we enter “uncharted territory of destruction” through our failure to cut greenhouse gas emissions and take the actions needed to stave off catastrophe, leading scientists have said. Despite intensifying warnings in recent years, governments and businesses have not been changing fast enough, according to the United in Science report published on Tuesday. The consequences are already being seen in increasingly extreme weather around the world, and we are in danger of provoking “tipping points” in the climate system that will mean more rapid and in some cases irreversible shifts.
/jlne.ws/3RKFBxu

A Record 19 Million Americans Asked the IRS for Tax Extensions. It Wasn’t Just Procrastination.; Nearly 1 in 8 Americans asked the IRS for more time to file; taxpayers who miss the Oct. 17 deadline face steep penalties
Ashlea Ebeling – The Wall Street Journal
A record 19 million taxpayers asked the Internal Revenue Service for extra time to file their 2021 individual income tax returns this spring. As the Monday, Oct. 17 deadline on those six-month extensions is approaching, many taxpayers and tax pros say they are still scrambling. A variety of factors is to blame beyond just procrastination, tax preparers say: shifting due dates, Covid-related tax law changes, late forms, the IRS backlog and taxpayer burnout. “Everybody is still behind,” said Darren Neuschwander, an accountant and chairman of the American Institute of CPAs’ individual and self-employed tax committee. “I know the IRS is encouraging us to file the returns, but we don’t have the information to complete them.”
/jlne.ws/3Blxn8m

Russia Is Getting Frozen Out As Traders Negotiate Metals Contracts; Supply negotiations are kicking off for next year’s contracts; Western manufacturers are trying to avoid Russian supplies
Mark Burton, Archie Hunter, and Jack Farchy – Bloomberg
The metals world is beginning its annual ritual of hashing out contracts for the upcoming year with one key question in many traders’ minds: What’s going to happen to Russian supplies? The country is a big producer of aluminum, nickel, copper and palladium, and supply deals signed before the war mean sales have largely kept flowing since the invasion of Ukraine. But September marks the start of what’s known as “mating season,” when new contracts are negotiated, and traders and executives say there’s a growing unwillingness in western manufacturing hubs to receive new Russian metal.
/jlne.ws/3eLJtQk

South Korea issues arrest warrant for fallen ‘crypto king’ Do Kwon; Terraform Labs co-founder under investigation since $40bn collapse of crypto tokens
Song Jung-a and Christian Davies – Financial Times
A South Korean court issued an arrest warrant for Do Kwon, the co-founder of collapsed cryptocurrency operator Terraform Labs, over allegedly violating capital market rules after the $40bn implosion of the terra and luna tokens earlier this year. The court on Wednesday also issued arrest warrants for five other people connected to Terraform Labs staying in Singapore, according to a spokesperson for the Seoul Southern District Prosecutors’ Office. Daniel Shin, the co-founder of Terraform Labs, was not included among the five other people.
/jlne.ws/3RJnKap

Ukraine Invasion

Give Ukraine What It Needs to Win; With the war against Russia at a potential turning point, the US and its allies should stay united and apply more pressure.
The Editors – Bloomberg
Russian President Vladimir Putin told a gathering in Vladivostok last week that his country had “not lost anything and will not lose anything.” He may be less certain of decisive victory today. An offensive by Ukraine’s armed forces has made spectacular progress, retaking more than 6,000 square kilometers (2,300 square miles) of lost territory, according to President Volodymyr Zelenskiy, and reversing gains that took Russia months to achieve. Whatever happens next, there’s no question that the charge has been a major strategic and operational defeat for the Kremlin. Allied nations must help Ukraine make the most of it.
/jlne.ws/3eHHufP

Ukraine aspires to free all Russian-occupied land after days of military success
Tom Balmforth – Reuters
Ukraine has set its sights on freeing all territory occupied by invading Russian forces after driving them back in a speedy counter-offensive in the northeast and there are indications of more U.S. military aid on the way to back Ukraine’s mission. In an evening address, President Volodymyr Zelenskiy said around 8,000 square km (3,100 square miles) have been liberated so far, apparently all in the northeastern region of Kharkiv. “Stabilisation measures” had been completed in about half of that territory, Zelenskiy said, “and across a liberated area of about the same size, stabilisation measures are still ongoing.” Reuters was not able to immediately verify the full scope of battlefield successes claimed by Ukraine. The total area cited by Zelenskiy is roughly the size of the Greek island of Crete.
/jlne.ws/3Dofqbx

Exchanges, OTC and Clearing

UK markets set to close for funeral of Queen Elizabeth II; Several venues will not open their markets on Monday out a mark of respect to Her Majesty Queen Elizabeth II and due to it being a public holiday.
Annabel Smith – The Trade
UK-based trading venues have announced varying levels of closure on 19 September in light of Queen Elizabeth II’s funeral being declared a bank holiday. The London Stock Exchange confirmed in a member notice that it would be closing its markets on Monday. The London Metal Exchange (LME) confirmed that its offices will be closed on 19 September but that its markets will remain open. During open outcry, the ring will be suspended and the trading fees of the day will be donated to charity, LME added.
/jlne.ws/3Bfk6hp

The Ethereum Merge is coming
SDX
The Ethereum Merge is coming – Ethereum Mainnet will upgrade from a proof-of-work to a proof-of-stake consensus mechanism, the Beacon Chain, in mid-September 2022.
As the current proof-of-work process for block validating is energy-intensive, the merge will lead to a much more energy-efficient blockchain operation. According to the Ethereum Foundation, the nonprofit that funds Ethereum ecosystem development, proof of stake will cut Ethereum’s energy usage by around 99.95%. One focus for developers post-Merge will be sharding, which aims to improve Ethereum’s transaction speed and decrease its fees by spreading network activity across many shards.
/jlne.ws/3BONJI5

Euronext Corporate Services’ IntegrityLog supports greater protection for whistleblowers in France
Euronext
Euronext Corporate Services’ IntegrityLog supports the French implementation of the EU Whistleblower Directive. The online tool can automate whistleblowing for companies in a safe and anonymous way to guarantee protection for whistleblowers. On 1 September 2022, the French law implementing the EU Whistleblower Directive entered into force, changing the way whistleblowers are protected. The new law includes the obligation for companies and public institutions with at least 50 employees, as well as municipalities with more than 10,000 inhabitants, to implement a whistleblowing system.
/jlne.ws/3DjLMEx

3 questions to Paula Redondo Pereira; Meet the LGX Academy lecturers
LGX
Whether you are already part of the LGX Academy or would like to know more about the market, our expert lecturers are bringing you an outlook of the sustainable finance sphere.
In this part, Paula Redondo Pereira, Head of Regulatory Affairs at the Luxembourg Stock Exchange, shares her views on teaching, the importance of being involved in expert groups and the need for harmonised taxonomy and standards.
/jlne.ws/3QXe6Qp

BOX Exchange: Annual SIFMA BCP/ Reg SCI Test – October 15, 2022
BOX Options
In coordination with other market centers and in support of Regulation SCI, BOX Exchange LLC (“BOX”) will be participating in the annual SIFMA BCP Test on Saturday, October 15, 2022. As required by Regulation SCI and BOX Rule 2100, certain BOX Participants are required to participate in an annual disaster recovery functional testing.1 BOX will be leveraging the annual industry-wide SIFMA BCP Test and BOX specific Pre-Tests to fulfill this requirement. BOX has individually notified the Designated BCP/DR Participants who are required to participate in the SIFMA BCP Test and the BOX specific Pre-Test.
/jlne.ws/3qELkct

REGIS-TR and Novatus become partners
BME-X
REGIS-TR welcomes Novatus Advisory to their expanding portfolio of partners across the transaction reporting space. The partnership will leverage both REGIS-TR and Novatus Advisory’s expertise in financial technology and best-in-class support across the regulatory reporting lifecycle.
/jlne.ws/3LbC3lw

Closure of Bursa Malaysia in Conjunction with Malaysia Day 2022
Bursa Malaysia
Bursa Malaysia and its subsidiaries will be closed on Friday, 16 September 2022. Bursa Malaysia and its subsidiaries will resume operations on Monday, 19 September 2022
/jlne.ws/3eLtmlN

Revised Lists Of The Moscow Exchange Indices Announced
Mondovisione
Due to the suspension of trading in ordinary shares of the Public Joint Stock Company “Quadra – Power Generation” (code: TGKD, ISIN: RU000A0JNMZ0), these shares will be excluded from the constituent lists of the MOEX Broad Market Index, the RTS Broad Market Index, the MOEX Electric Utilities Index and the RTS Electric Utilities Index from September 16, 2022.
/jlne.ws/3xqlP2f

New Product: Initial Listing of Tuesday Weekly Options and Thursday Weekly Options on E-mini Nasdaq-100 Index Futures Contracts – Effective October 03, 2022
CME Clearing
Notice Date 13 September 2022; Effective Date 03 October 2022; Initial Listing of Tuesday Weekly Options and Thursday Weekly Options on E-mini Nasdaq-100 Index Futures Contracts.
/jlne.ws/3S5MDwS

Business Indicators For August 2022
Deutsche Börse Group
A summary of Deutsche Börse Group’s business indicators for August 2022 is now available on their website.
/jlne.ws/3QIL2vM

FEX Global will close for the National Day of Mourning on 22 September 2022
FEX
In response to the Australian Government’s announcement of a National Day of Mourning and Public Holiday on Thursday the 22nd September 2022 to commemorate Her Majesty, Queen Elizabeth II, FEX Global will be closed for trading from the Close of Business on Wednesday 21st September 2022 and will reopen the market at 10 am on Friday 23rd September 2022.
/jlne.ws/3xlUiPm

JSE Investor Services expands client base as business gains momentum
JSE
The JSE Investor Services (JIS), a wholly-owned subsidiary of the Johannesburg Stock Exchange (JSE), is growing market share of its registry management and shareholder communication business while helping companies trace shareholders or beneficiaries of unclaimed benefits. JIS is a leading transfer secretary provider with over 2,5 million shareholder records under management. JIS maintains the share registers of listed and unlisted companies including JSE Top 40 companies. With the recent addition of Northam Platinum, Growthpoint Properties, Supergroup and Exxaro as clients in the transfer secretary business, the company’ market share has now grown to 27%.
/jlne.ws/3Ucf5ir

Passing Of Her Majesty Queen Elizabeth Ii – Bank Holiday Arrangements
LME
The LME joins the nation and those around the world in mourning the loss of Her Majesty, Queen Elizabeth II, and sends its condolences to the Royal Family. A national public holiday has been declared in the UK on Monday 19 September 2022 (the Bank Holiday) for The Queen’s funeral. With the exception of critical operations teams, the LME office will shut on 19 September 2022, and the first Ring trading session will not take place on this date as a mark of respect during the funeral of Her Majesty.
/jlne.ws/3vimcfa

Moscow Exchange provides participants with a service for early withdrawal of deposits
MOEX
From September 12, 2022, participants in the deposit market with a central counterparty (CC) of the Moscow Exchange have the opportunity to withdraw part of the funds placed on the deposit and then return them back at the market rate.
/jlne.ws/3DlliSX

Business Indicators For August 2022
Deutsche Börse Group
A summary of Deutsche Börse Group’s business indicators for August 2022 is now available on their website.
/jlne.ws/3QIL2vM

Self-Certification; Amendments To Article 12.5 Of Bourse De Montreal Inc. To Modify The Minimum Price Fluctuation Of The Three-Month Canadian Bankers’ Acceptance Futures
TMX
On July 11, 2022, the Rules and Policies Committee of Bourse de Montréal Inc. (the “Bourse”) approved amendments to Article 12.5 of Bourse de Montréal Inc. to modify the minimum price fluctuation of the threemonth Canadian bankers’ acceptance futures. These amendments were self-certified in accordance with the selfcertification process as established in the Derivatives Act (CQLR, Chapter I-14.01).
/jlne.ws/3RHmLYk

Nasdaq Announces End of Month Open Short Interest Positions in Nasdaq Stocks as of Settlement Date August 31, 2022
Nasdaq
At the end of the settlement date of August 31, 2022, short interest in 3,449 Nasdaq Global MarketSM securities totaled 10,037,516,423 shares compared with 10,108,978,643 shares in 3,454 Global Market issues reported for the prior settlement date of August 15, 2022. The end of August short interest represent 3.13 days average daily Nasdaq Global Market share volume for the reporting period, compared with 2.71 days for the prior reporting period.
/jlne.ws/3eMdejP

NZX Corporate Governance Institute establishment members announced
NZX
NZX today announced the members of the new institute that will aim to be the leading authority for corporate governance of listed companies in New Zealand.
/jlne.ws/3xmfPYi

NYSE American to Suspend Trading Immediately in Great Panther Mining Limited (GPL)
ICE
NYSE American LLC (“NYSE American” or the “Exchange”) announced that the staff of NYSE Regulation has now determined to immediately suspend trading in the common shares of Great Panther Mining Limited (the “Company”) — ticker symbol GPL — from the Exchange. On September 6, 2022, the NYSE American announced that it was commencing proceedings to delist the Company. The Company had the right to request a review of this determination by a Committee of the Board of Directors of the Exchange. On September 13, 2022, the Company confirmed that it will not exercise that right. Accordingly, the NYSE American will now suspend trading in the common shares and will file a delisting application with the Securities and Exchange Commission.
/jlne.ws/3Lf2xCw

Fintech

BankThink The real problem with bank-fintech partnerships
John Heltman – American Banker
Between the enactment of the Dodd-Frank Act in 2010 and roughly the beginning of the Trump administration in 2017, there was one core meta question floating around banking regulation: How much capital — and of what type — do banks need to hold to prevent another 2008 from happening again? I’ll spare us all the tedium of explaining why it’s important for the global economy not to have another financial crisis and start from the assumption that the banking system was undercapitalized and needed both greater capitalization, and to some extent, more effective supervision.
/jlne.ws/3eLs36n

Equiduct expands into US retail market with Apex; The pan-European exchange brings commission-free best execution on a European regulated market for key US stocks, providing provide plug and play access to European retail brokers.
Laurie McAughtry – The Trade
Pan-European equities exchange Equiduct has broadened its sights to the US, launching the trading of US equities in Apex, an on-exchange best execution service with zero trading fees for retail investors. The launch offers over five million retail investors access to 21 highly traded US stocks, priced in euros, and is supported by liquidity providers Optiver and Virtu Financial.
/jlne.ws/3qDfXih

SWIFT Financial-Messaging System Pilots Blockchain Project; Project with fintech Symbiont aimed at curbing inefficiency; SWIFT gained attention following Russia’s invasion of Ukraine
Katherine Doherty – Bloomberg
SWIFT, the messaging system used by financial institutions globally to convey instructions on tens of millions of transactions each day, is testing out blockchain. The Society for Worldwide Interbank Financial Telecommunication, or SWIFT for short, is piloting a project with fintech company Symbiont Inc., according to a post seen by Bloomberg. The collaboration, which includes Citigroup Inc., Vanguard and Northern Trust, is aimed at driving “efficiencies in communicating significant corporate events,” like dividend payments and mergers, SWIFT said in its post.
/jlne.ws/3RLV0xQ

Cybersecurity

Twitter ‘over a decade behind’ industry standards for cybersecurity: whistleblower
Ronn Blitzer – Fox Business
Former Twitter chief security officer Peiter “Mudge” Zatko is blowing the whistle on the social media platform’s data security shortcomings, claiming that company executives turned a blind eye to the problem while focusing on profits.
Zatko appeared before the Senate Judiciary Committee on Tuesday, saying that after the FTC ordered Twitter to protect users’ private data, the company failed to do so.
/jlne.ws/3BezCdw

The White House is releasing important cybersecurity guidance today
Tim Starks – The Washington Post
A White House office is publishing guidelines this morning for how federal agencies and government contractors will comply with President Biden’s demand last year that federal systems and vendors meet common cybersecurity standards.
/jlne.ws/3LgLxMA

AI has bigger role in cybersecurity, but hackers may benefit the most
Bob Violino – CNBC
Artificial intelligence is playing an increasingly important role in cybersecurity — for both good and bad. Organizations can leverage the latest AI-based tools to better detect threats and protect their systems and data resources. But cyber criminals can also use the technology to launch more sophisticated attacks.
/jlne.ws/3LdnD4o

CISA Announces Fifth Annual Cybersecurity Summit to Take Place October 4 in Atlanta
Homeland Security Today
The Cybersecurity and Infrastructure Security Agency (CISA) announced it will host its 5th Annual Cybersecurity Summit on Tuesday, October 4th in Atlanta, Georgia.
Held in partnership with the Atlanta University Center Consortium (AUCC), the world’s oldest and largest consortium of historically Black colleges and universities, the all-day event will bring together cybersecurity experts and thought leaders from across government, industry and academia for a meaningful dialogue on the state of cybersecurity worldwide and the issues and challenges facing critical infrastructure.
/jlne.ws/3eS4ysB

CISA Seeks Input on New Cybersecurity Reporting Requirements
Perkins Coie – JDSupra
President Biden signed into law the Cyber Incident Reporting for Critical Infrastructure Act of 2022 (CIRCIA) on March 15, 2022. The background and contours of CIRCIA are discussed in a previous update. CIRCIA authorizes and directs the Cybersecurity and Infrastructure Security Agency (CISA) to issue rules that require “covered entities”—a subset of critical infrastructure providers that CISA will define—to report “covered cyber incidents” and payments made in response to ransomware attacks. Such reports will be mandatory, and CIRCIA provides the government with enforcement authority.
/jlne.ws/3xKBV7h

Cryptocurrencies

Crypto Exchange FTX Freezes Under Strain of CPI Volatility
Oliver Knight – CoinDesk
Cryptocurrency exchange FTX was unusable for some customers Tuesday amid a closely watched economic report on U.S. inflation, prompting a flurry of frustration from traders. FTX CEO Sam Bankman-Fried confirmed that the exchange faced issues, stating that the “website did wonky auto-refreshing for a lot of people.” Traders on Twitter reported that the FTX interface was intermittently freezing at 12:30 UTC, which is when the U.S. consumer price index (CPI) report was released. Bankman-Fried responded and said that the issue had been fixed as of 13:25 UTC.
/jlne.ws/3LegYab

Micro Cryptocurrency Futures Trading Challenge; Calling all crypto enthusiasts!
CME Group
Register now to compete in the Micro Cryptocurrency Futures Trading Challenge. Dive into the world of Cryptocurrency futures by learning how to trade our Micro Bitcoin and Micro Ether futures contracts. Competing amongst your peers in this hands-on, risk-free trading challenge. These smaller sized contracts provide an efficient, cost-effective way to fine-tune your crypto exposure and enhance your trading strategies.
/jlne.ws/3Dog355

Crypto Wants Some SEC Rules; Also Twitter’s shareholder vote, Mudge expert chats, Treasury market liquidity and M&A as water-park avoidance.
Matt Levine – Bloomberg
I wrote last Thursday about a speech that Gary Gensler, the chair of the US Securities and Exchange Commission, gave about securities regulation and crypto. My basic point was that Gensler wants the SEC to have jurisdiction over basically all of crypto, because basically every crypto token is a security, but that he does not seem to have any interest in writing new rules to accommodate the crypto market. Gensler’s approach would put the SEC in charge of crypto, and then more or less ban crypto, and I am not sure that is a winning position for him to take.
/jlne.ws/3xlTwCc

Voyager Digital’s Asset Auction Explained
CoinDesk
The auction for crypto lender Voyager Digital’s assets kicked off Tuesday morning. Foley & Lardner LLP Partner Patrick Daugherty joins “All About Bitcoin” to discuss the future for Voyager Digital and what to expect from the auction results.
/jlne.ws/3S1Fs8H

Crypto Custody Specialist Anchorage Digital Offers Japanese Yen Stablecoin
Ian Allison – CoinDesk
Regulated cryptocurrency custody platform Anchorage Digital is supporting a Japanese yen (JPY) stablecoin, adding to its digital U.S. dollar and euro custodial offerings and fostering fintech use cases from payments to payroll in Japan.
/jlne.ws/3qAyqfp

Developing South Korea’s blockchain infrastructure: Why Binance, FTX and Huobi are frontrunners in partnering with Busan City
News Direct
Within the span of two weeks, three major crypto exchanges – Binance, FTX and Huobi – have signed separate MoUs with the Busan City Government to drive the development of South Korea’s blockchain infrastructure. With the country constantly at the forefront of the global crypto space, the announcements of the various partnerships mark a breakthrough for South Korea’s blockchain endeavors. Taking place amid the crypto winter, the partnerships will add new momentum to the development of the country’s blockchain infrastructure and raise the game for the entire industry.
/jlne.ws/3QIPgnd

Steep Drop in Bitcoin, Ether Causes Over $250M in Futures Losses
Shaurya Malwa – CoinDesk
Bitcoin (BTC) and ether (ETH) fell below recent support levels in the past 24 hours in a move that caused over $250 million in liquidations tracking the two assets, according to data. The crypto markets followed a drop in U.S. equities after higher-than-expected inflation readings for August. Futures tracking bitcoin lost upwards of $130 million, edging above ether futures with $125 million. Ethereum Classic (ETC) futures saw over $10 million in losses – an unusual figure for the asset – amid recent trading interest in the tokens.
/jlne.ws/3BCAJVA

Crypto Options Trading Startup Synquote Raises $2.8M From Initialized, Polygon
Cameron Thompson, Danny Nelson – CoinDesk
Crypto options trading startup Synquote closed a $2.8 million seed funding round to build out a platform for trading derivatives contracts in tokens that don’t usually have such markets. Initialized Capital led the round.
/jlne.ws/3qCpSER

Crypto Traders Flee India Exchanges to Binance to Escape Tax; A transaction tax has hurt volumes at India’s crypto exchanges; But Binance and FTX are among firms that don’t deduct the levy
Suvashree Ghosh and Sidhartha Shukla – Bloomberg
Binance Holdings Ltd.’s billionaire Chief Executive Officer Changpeng Zhao is tightening his grip on India’s market for cryptocurrency trading in the fallout from a major tax change. Downloads of Binance’s app in India jumped to 429,000 in August, the highest this year and almost triple that of runner-up CoinDCX, data from market intelligence firm Sensor Tower show. Only Binance among the top exchanges achieved higher downloads in India compared with July.
/jlne.ws/3LbwbZF

NFTs Brighten Wall Street’s Evening As VanEck Works To Build Community With Afropolitan
Maria Gracia Santillana Linares – Forbes
As Wall Street shares were ending sharply lower on Tuesday, Chika Uwazie found herself ringing the New York Stock Exchange’s closing bell in an upbeat mood. “How many times do you see Black people ringing the bell, especifically Africans,” asked the cofounder of Afropolitan, a company looking to create a digital country for the continent’s diaspora. “That’s why we brought our community into the room.” As traders—at least those with long positions—headed home to lick their wounds, an after-hours event was just getting under way at the Big Board, hosted by VanEck, the $50 billion investment manager-turned-crypto bull, which brought together Afropolitan and global investors. The focus was on non-fungible tokens (NFTs), which share elements of investments and cooperation.
/jlne.ws/3BgKLuk

Politics

MSNBC’s Stephanie Ruhle slams Pelosi over stalled Congress stock trading ban
Thomas Barrabi – NY Post
MSNBC anchor Stephanie Ruhle ripped House Speaker Nancy Pelosi on Monday night for slow-walking proposed legislation that would bar members of Congress from trading stocks while in office. Ruhle criticized the speaker during a conversation with Democratic Rep. Abigail Spanberger of Virginia – one of several lawmakers who has submitted proposals that would ban Congressional stock trading.
/jlne.ws/3dgSOzh

US Treasury Explains How Americans Can Recover Crypto Locked in Tornado Cash
Nikhilesh De – CoinDesk
U.S. residents and citizens can apply for a license to recover any funds they have that are locked in Tornado Cash, the Treasury Department said Tuesday. The U.S. Treasury Department’s Office of Foreign Asset Control (OFAC), its sanctions watchdog, updated its “frequently asked questions” (FAQs) document Tuesday to provide guidance for the crypto industry on how people and companies can remain compliant with sanctions against Tornado Cash, the Ethereum privacy mixer blacklisted last month on allegations that North Korean hackers used it to launder funds.
/jlne.ws/3S51TtU

Biden May Buy Oil Just Below $80; Democrats Stymied Trump at $24; Trump proposed filling strategic reserve at rock-bottom prices Democrats had crowed about blocking an oil industry bailout
Steven T. Dennis – Bloomberg
The Biden administration is considering replenishing the Strategic Petroleum Reserve when oil dips below $80 a barrel, just two years after Democrats blocked former President Donald Trump from filling the reserve at a fraction of that price. Biden in March ordered the release of a record 180 million barrels of oil from the reserve in an attempt to stem supply shortages and the rapid rise of gasoline prices in the US following Russia’s invasion of Ukraine. The administration now is looking to protect US oil-production growth and prevent crude prices from plummeting, according to people familiar with the matter.
/jlne.ws/3BF5ppd

Ken Starr, investigator who probed Clinton administration, dies at 76
Lucien Bruggeman – ABC News
Kenneth Starr, the polarizing former independent counsel who led a highly publicized investigation of then-President Bill Clinton, has died at the age of 76, according to his family. He died at Baylor St. Luke’s Medical Center in Houston of complications from surgery, his family said. The high-powered Washington lawyer, who also served as U.S. solicitor general and a federal judge during a decadeslong career in government, played a pivotal role in the investigation of the so-called Whitewater scandal that engulfed the Clinton administration in the mid-1990s and eventually led to the first impeachment of a president in more than a century.
/jlne.ws/3xlTp9K

Pandemic Learning Loss Is a National Crisis; But does the US have the political will to fix it? Michael R. Bloomberg – Bloomberg Opinion
Just in time for the start of the new school year, America’s public-education system has received a damning report card. The latest results of the National Assessment of Educational Progress reveal historically large drops in math and reading scores for US public-school students. The findings are an indictment of school closures that went on for far too long, pushed by teachers unions and some of their political allies. They also show why recovering the ground students have lost is a national emergency.
/jlne.ws/3qANJoi

EU targets EUR140bn from windfall taxes on energy companies; European Commission president Ursula von der Leyen outlines measures to ease impact of soaring prices
Sam Fleming and Alice Hancock – Financial Times
The EU is planning to raise EUR140bn from energy companies’ profits to soften the blow of record high prices this winter, in what would amount to a new bloc-wide levy in response to the crisis over Ukraine. A proposed windfall tax on power companies that do not burn gas, the price of which has recently soared, would be accompanied by other measures on fossil fuel groups.
/jlne.ws/3DoGYhe

EU proposes windfall levies on energy firms to ease price pain
Kate Abnett – Reuters
The European Union’s executive plans to raise more than 140 billion euros ($140 billion) to soften the blow to consumers from soaring energy prices by skimming off revenues from low-cost electricity generators and making fossil fuel firms share windfall profits. The European Commission published the proposals on Wednesday as the 27-member European Union grapples with an energy crisis fuelled by Russia’s invasion of Ukraine.
/jlne.ws/3eHVs1b

Regulation

Terra Co-Founder Do Kwon Faces Arrest Warrant in South Korea; Court in Seoul issued warrant for Do Kwon and five others; Allegations include violations of nation’s capital markets law
Hooyeon Kim – Bloomberg
A court in South Korea issued an arrest warrant for Do Kwon, the founder of the Terraform Labs cryptocurrency ecosystem, whose implosion earlier this year sparked a global crypto rout. The court in Seoul issued a warrant for Do Kwon and five others on allegations that include violations of the nation’s capital markets law, according to a text message from the prosecutor’s office.
/jlne.ws/3Lcwu6e

Bank of East Asia China Executive Detained on Bribe Charge; Executive held in China on suspicion of taking bribes: Cailian; Lender says it has stringent internal controls in place
Denise Wee – Bloomberg
A senior executive of Bank of East Asia Ltd.’s China unit has been detained on suspicion of accepting bribes, according to a report by Cailian. Bank of East Asia (China) executive vice president and head of Northern China, Chen Zhiren was detained on July 19 and is being held in Beijing, according to the report, which said the investigation is related to bank loans.
/jlne.ws/3xpCS4G

Irish regulator may be open to reviewing ETF disclosure rules, says lawyer; Relaxing stance requiring daily holdings reporting would boost growth of active ETFs
Dom Lawson – Financial Times
The Central Bank of Ireland is considering reviewing its requirement for exchange traded funds to fully disclose their daily holdings, according to a lawyer, in a move seen as key to the growth of actively managed ETFs. Stephen Carson, partner in the asset management and investment funds group at A&L Goodbody, said the CBI had “expressed a desire to engage with market participants and to review the requirement”.
/jlne.ws/3BEWCDN

Chairman Behnam to Speak at Michigan Agri-Business Association 2022 Outlook Conference
CFTC
Chairman Rostin Behnam will participate in a fireside chat on, The CFTC and Michigan Agriculture, at the Michigan Agri-Business Association 2022 Outlook Conference.
/jlne.ws/3d7gTZr

SEC Charges Four Underwriters in First Actions Enforcing Municipal Bond Disclosure Law
SEC
The Securities and Exchange Commission today filed a litigated action against Oppenheimer & Co. Inc. and separately announced settlements with BNY Mellon Capital Markets LLC, TD Securities (USA) LLC, and Jefferies LLC, charging each of the four firms with failing to comply with municipal bond offering disclosure requirements. These are the first SEC actions addressing underwriters who fail to meet the legal requirements that would exempt them from obtaining disclosures for investors in certain offerings of municipal bonds.
/jlne.ws/3Dp5zCD

SEC Brings Settled Actions Charging Cherry-Picking and Compliance and Supervisory Failures
SEC
The Securities and Exchange Commission today announced that Scott Adam Brander, of Delray Beach, Florida, Brander’s former employer Buckman Advisory Group, LLC, a New Jersey based investment advisory firm, and Henry J. Buckman, Jr., Brander’s former supervisor, each agreed to settle charges related to Brander’s multiyear, cherry-picking scheme. Cherry-picking is the fraudulent practice in which an adviser preferentially allocates profitable trades to the adviser’s personal account at the expense of the adviser’s client accounts.
/jlne.ws/3Djxvrs

SEC Charges Former Investment Adviser with Stealing from Clients
SEC
The Securities and Exchange Commission today announced fraud charges against former investment adviser representative Marc J. Frankel, who allegedly misappropriated client funds to pay his personal expenses.
/jlne.ws/3U7jMtM

SEC Charges South Florida Venture Capital Firm and Others with Acting as Unregistered Brokers and Selling $3 Million in Securities to Investors
SEC
The Securities and Exchange Commission today announced charges against TBG Holdings Corporation (“TBG”), its principals Neil B. Swartz and Timothy S. Hart, and sales agents Ted L. Romeo, Vincent J. Caputo, and Frank S. Dickerson alleging registration violations for unlawfully selling shares of health management company MediXall Group, Inc. (“MediXall”) to investors.
/jlne.ws/3qz9GV0

SEC Charges VMware with Misleading Investors by Obscuring Financial Performance
SEC
The Securities and Exchange Commission today charged VMware Inc. for misleading investors about its order backlog management practices, which enabled the Palo Alto, California-based technology company to push revenue into future quarters by delaying product deliveries to customers, concealing the company’s slowing performance relative to its projections.
/jlne.ws/3LaT0wv

SEC’s Gensler Holds Firm That Existing Laws Make Sense for Crypto
Nikhilesh De – CoinDesk
Securities and Exchange Commission (SEC) Chair Gary Gensler told the Practising Law Institute last week that existing securities laws fit the crypto markets in a speech that’s garnered attention from all parts of the digital currency ecosystem. Prior to the speech, I had the opportunity to speak with the longtime regulator about his agency’s approach to crypto. SEC Chair Gary Gensler was one of CoinDesk’s 2021 Most Influential honorees for his role running the federal regulator. He spoke to CoinDesk ahead of last week’s speech on cryptocurrencies and how they fit into federal regulations, echoing comments he made in an op-ed published in the Wall Street Journal last month.
/jlne.ws/3BARdO6

Charges against Club Culture director withdrawn
ASIC
Charges laid against Victoria Renee Ingrid Larsen of Aberfoyle Park, South Australia, have been withdrawn.
Ms Larsen was the sole director of Club Culture Pty Ltd (ACN 104 943 615).
/jlne.ws/3qDMgh4

FCA decides to impose conditions on takeover of Link Group
FCA
Following announcements made on Monday 12 September by Link Group to the Australian Securities Exchange and Dye and Durham (D&D) to the Toronto Stock Exchange, the Financial Conduct Authority is providing a short update on its involvement in the proposed takeover of the Link Group by D&D.
/jlne.ws/3xlAQCt

Investing and Trading

Wall Street Revenue Seen Plunging on Inflation, Recession Fears; JPMorgan sees investment-banking fees declining by half; Citigroup says trading revenue to fall in current quarter
Jennifer Surane and Hannah Levitt – Bloomberg
Wall Street giants are forecasting deep declines in investment-banking fees for the current quarter with investors still spooked by inflation, Federal Reserve interest-rate hikes and the potential for a recession. Citigroup Inc. Chief Financial Officer Mark Mason warned the fees his bank collects from deal making and capital markets origination are likely to plummet 50%, in line with the broader slowdown hitting Wall Street. That mirrors earlier comments from JPMorgan Chase & Co., which said investment-banking fees may fall by half as clients stay on the sidelines.
/jlne.ws/3RIBodT

Mr. ‘Big Short’ Burry Takes on Goldman Sachs; The iconic investor who was the first to call the imminent collapse of the subprime market is attacking the Wall Street giant.
Luc Olinga – The Street
Financier Michael Burry became a household name after the 2015 film “The Big Short” which depicted his bet on the subprime-mortgage meltdown that sparked the 2008 financial crisis. What most people tend to forget is that on the other side of the the mortgage collateralized debt obligations (CDOs)’ bet made by Burry there was notably Goldman Sachs (GS) . CDOs are loans, mortgages and other assets that investment banks package and offer to institutional investors.
/jlne.ws/3Bhw3mE

JPMorgan cautious about job cuts during investment banking downturn
Reuters via the New York Post
JPMorgan Chase and Bank of America, the two largest US banks by assets, expressed caution about job cuts in contrast with Goldman Sachs, where hundreds of layoffs could start as early this month. “You need to very careful when you have a bit of a downturn to start cutting bankers here and there because you will hurt the possibility for growth going forward,” Daniel Pinto, president and chief operating officer of JPMorgan, told investors at a conference Tuesday. “If anything, in some environments like this, there may be some very, very top bankers that you could not access or hire in the past that now they’re available to be hired.”
/jlne.ws/3qzfrlB

ISDA-Clarus RFR Adoption Indicator: August 2022
International Swaps and Derivatives Association
The ISDA-Clarus RFR Adoption Indicator increased to an all-time high of 51.1% in August 2022 from 46.4% the prior month. The indicator tracks how much global trading activity (as measured by DV01) is conducted in cleared over-the-counter and exchange-traded interest rate derivatives (IRD) that reference the identified risk-free rates (RFRs) in six major currencies. On a traded notional basis, the percentage of RFR-linked IRD increased to 44.0% of total IRD transacted in August compared to 39.0% the prior month.
/jlne.ws/3LbQoOK

Mercury Digital Assets Rebrands as Liquid Mercury
Liquid Mercury
Mercury Digital Assets, the crypto trading technology built by professionals for professionals, has changed its name to Liquid Mercury. Liquid Mercury is the #1 choice for sophisticated buy-side and institutional sell-side legacy trading professionals moving into crypto. “Sophisticated market participants will lead the next phase of growth in crypto,” said Liquid Mercury CEO Tony Saliba. “Liquid Mercury was built for professional market participants moving into crypto.”
/jlne.ws/3xqmSzd

Japan steps up yen ‘psychological warfare’ with calls to traders; Rate check signals high level of alarm and often precedes direct currency interventions
Leo Lewis and Kana Inagaki and Katie Martin – Financial Times
A fresh collapse in the Japanese yen halted on Wednesday after authorities cranked up their warnings over a drop in the currency and called traders to quiz them on market conditions. The yen has plunged through a series of multi-decade lows against the surging dollar in recent months, but a surprisingly strong set of US inflation data on Tuesday prompted a fresh 2 per cent drop in the Japanese currency overnight, pushing the exchange rate as high as ¥144.95.
/jlne.ws/3DwSF5g

Environmental, Social and Corporate Governance

To Save Whales, Don’t Eat Lobster, Watchdog Group Says; The group says that the shellfish, long considered a more responsible choice, cannot be considered a guilt-free meal anymore.
Annie Roth – The New York Times
American lobster may be a beloved and delicious splurge, but it is no longer a sustainable seafood choice and consumers should avoid eating it, according to Seafood Watch, a group that monitors how fish and other seafood are harvested from the world’s oceans. The organization made the announcement last week, motivated by concerns that the ropes used to fish for lobsters and some other seafoods often entangle critically endangered North Atlantic right whales. The marine mammal’s population has fallen to the low hundreds, and federal wildlife authorities say it faces extinction in the near future.
/jlne.ws/3BF7Bx0

FCA sounds alarm over ESG benchmarks
Sally Hickey – Financial Times
The FCA has warned of the risks of ESG benchmarks and will be scrutinising how they are constructed and labelled. In a “Dear CEO” letter released last week (September 8), the FCA’s director of infrastructure and exchanges, Edwin Schooling Latter, said the regulator has concerns over the benchmarks. “We have concerns that some benchmark administrators have not accurately described the economic reality that their benchmarks measure,” he said.
/jlne.ws/3RL09WG

JPMorgan to Offer ESG Analysis Tool
Nasdaq
JPMorgan Chase has partnered with software firm Datamaran to create a data-analysis tool for clients to gauge the ESG risks facing portfolio companies and the ESG risks that these assets pose to the world around them. This is a concept known as double materiality. While the concept is already built into EU ESG regulations, this would be the first time it is used in the U.S. The new tool is called ESG Discovery. Jean Xavier Hecker, who is the Paris-based co-head of EMEA ESG research at JPMorgan and the designer of the tool, stated, “Double materiality is the only way to think about ESG in a way that is both forward-looking and comprehensive.” The tool, which is now available to JPMorgan clients, will use artificial intelligence to compile data from corporate disclosures, regulations, and online media. It is important to note that it won’t provide an ESG rating or score. Its focus is on unpacking individual ESG drivers.
/jlne.ws/3xnfAMA

“No Consensus” on ESG Reporting Standards at Exchangesmm
ESG Investor – Regulation Asia
Stock exchanges have reported increased demand from investors for ESG disclosures, but limited progress in providing common guidance on reporting standards. In the latest annual World Federation of Exchanges sustainability report, 96% of respondents reported demand for ESG disclosure, up from 70% in 2018. The report found “no consensus” on the reporting standards required or recommended by exchanges, with an equal number of respondents (27 out of 43) favouring the TCFD and GRI reporting standards.
/jlne.ws/3B7wEHC

Institutions

Goldman Sees Fresh Pain on Wall Street as Real Rates Rise; Higher inflation-adjusted yields are hurting market valuations; Christian Mueller-Glissmann sees enduring equity volatility
Denitsa Tsekova – Bloomberg
Goldman Sachs Group Inc.’s Christian Mueller-Glissmann has a simple takeaway for clients on that latest inflation shock: Wall Street’s bad year is set to get worse. According to the managing director of portfolio strategy and asset allocation, a behind-the-curve Jerome Powell is now under even greater pressure to ramp up inflation-adjusted interest rates in order to cool the hot business cycle — threatening fresh damage for cross-asset portfolios. All that suggests valuations for pretty much everything bar the US dollar have scope to tumble further given the Federal Reserve is hellbent on pushing real yields even higher after a 10-year benchmark briefly topped 1% on Tuesday. That level, last seen in 2018, looks set to materially constrict economic growth ahead.
/jlne.ws/3Bd6VNR

JPMorgan Is Shaking Up Its Fixed-Income Business After Recent Departures; New leadership follows the planned departure of Guy America; Firm’s fixed-income business is the biggest on Wall Street
Hannah Levitt – Bloomberg
JPMorgan Chase & Co. is overhauling how it runs Wall Street’s biggest fixed-income trading business, handing control of key desks to two senior executives in the wake of recent departures from the unit. Global equities head Jason Sippel will take over global credit markets, public finance and credit portfolio group lending, according to an internal memo Tuesday seen by Bloomberg News. Pranav Thakur will become head of global macro markets and emerging-markets credit, expanding his current role running currencies, commodities and emerging markets. Both report to Troy Rohrbaugh, JPMorgan’s global head of markets.
/jlne.ws/3Lcgy3X

Europe’s Top Banks Plan to Lure Wall Street Talent with WFH Benefits; Deutsche Bank, UBS among lenders committed to hybrid model; Goldman, Morgan Stanley want Wall Street staff back in offices
Nicholas Comfort – Bloomberg
At Goldman Sachs Group Inc. and other US banks, staffers know that their bosses want them back in the office. Yet many of their colleagues at European firms are working about half the time from home. Their employers say that flexibility is a competitive advantage. Every one of 12 top European banks surveyed by Bloomberg is continuing to allow employees to work remotely for part of the week. UBS Group AG even sees its embrace of hybrid working as a chance to hire talented staff from from US competitors, according to a person familiar with the matter.
/jlne.ws/3d8HXYd

Credit Suisse-Tycoon Clash Has Wealth Industry Holding Its Breath; Billionaire suing CS Trust for damages tied to banker’s fraud; Trial hinges on issue of where responsibility in a trust lies
Chanyaporn Chanjaroen and Low De Wei – Bloomberg
Georgian billionaire Bidzina Ivanishvili’s $800 million lawsuit against a trust firm owned by Credit Suisse Group AG is set to become a test case for the global industry handling billions in assets for wealthy families. A win for Ivanishvili against Credit Suisse Trust (Singapore) Ltd. may force a major rethink of how and when trust operators flag unusual transactions or other shady practices.
/jlne.ws/3U1XUjk

UK Money Manager Smith Plans to Shutter £350 Million Fund; Terry Smith proposing to liquidate Fundsmith Emerging Equities; Shareholders to vote on the proposal in coming weeks
Loukia Gyftopoulou and Nishant Kumar – Bloomberg
The UK’s most popular money manager plans to shut down one of his listed funds after its performance trailed the stockpicker’s own expectations. Terry Smith is planning to liquidate the £350 million ($404 million) Fundsmith Emerging Equities Trust, according to a statement Wednesday. After running it since 2014, Smith said he felt it no longer had a “particular edge that would allow us to deliver superior risk-adjusted returns.”
/jlne.ws/3xo3BhY

JPMorgan warns of up to 50% drop in investment banking fees; Gloomy outlook underscores Wall Street anxiety over global economy and debt markets
Joshua Franklin – Financial Times
JPMorgan Chase’s third-quarter investment banking revenues could be as much as 50 per cent lower than last year’s, one of the bank’s most senior executives warned on Tuesday. Daniel Pinto, JPMorgan president and head of the corporate and investment bank, said he expected third-quarter investment banking fees to be down 45-50 per cent on the $3.3bn achieved a year earlier, having fallen 44 per cent in the first six months of 2022. The bank will announce its results on October 14.
/jlne.ws/3BhMfED

Wellness Exchange

China reports 1,062 new coronavirus cases in mainland on Sept 13
Reuters
China reported 1,062 new COVID-19 infections on Sept. 13, of which 237 were symptomatic and 825 were asymptomatic, the National Health Commission said on Wednesday. That is compared with 1,048 new cases a day earlier, 242 symptomatic and 806 asymptomatic infections, which China counts separately. There were no new deaths, same as a day earlier, keeping the nation’s fatalities at 5,226. As of Sept. 13, mainland China had confirmed 247,557 cases with symptoms.
/jlne.ws/3diNtax

NYC Moves on from Covid as New Round of Omicron Shots Roll Out; Health officials will have to figure out how to get people boosted who have tired of the pandemic.
Emma Court – Bloomberg
New York City’s Javits Center is back to hosting conventions. The American Museum of Natural History is no longer vaccinating people (though the whale still has her bandage). And for many city residents, the fervent scramble to book appointments for shots in the spring of 2021 has given way to a very different feeling: apathy.
/jlne.ws/3B7rLhK

H.K. to Stop Moving Travelers With Covid to Quarantine Camp; Travelers can stay in their original hotels starting Nov. 1; The move marks another easing in the city’s travel policy
Jinshan Hong and Shirley Zhao – Bloomberg
Hong Kong will allow incoming travelers who test positive for Covid-19 to remain in their designated quarantine hotels instead of being transferred to isolation hotels or community facilities like the infamous Penny’s Bay.
/jlne.ws/3LfmHwd

Regions

OPEC Reiterates Warning About Disconnected Oil Market; Remarks are the latest signal that the group is prepared to act to support prices
Will Horner – The Wall Street Journal
The oil market is in a “state of schizophrenia” and increasingly disconnected from signs of robust crude demand, OPEC said Tuesday, reiterating earlier hints that it would act to support prices that have continued to tumble despite cuts to the cartel’s output. The comments echo remarks made last month by Saudi Energy Minister Prince Abdulaziz bin Salman. As Saudi Arabia is the group’s largest producer by some margin, comments from its officials carry large sway over the group’s actions but it is the first time such comments have been made on behalf of the entire 13-member cartel.
/jlne.ws/3DntMsM

Germany Weighs Nationalizing Uniper as Energy Crisis Worsens; Struggling gas giant hit by 12 billion-euro loss in first half; Government also considering lifting Uniper stake above 50%
Michael Nienaber, Vanessa Dezem, and Kamil Kowalcze – Bloomberg
The German government may increase its stake in Uniper SE above 50% and is open to taking the historic step of fully nationalizing the country’s biggest gas importer to prevent a collapse of the energy system.
/jlne.ws/3ddoaXv

Magnates Sell ‘Stunning Piece of New Zealand’ for Bumper Price; Remote farm ‘Halfway Bay Station’ is in Queenstown region; ‘Properties like this are hugely unique and iconic’: Sotheby’s
Ainsley Thomson – Bloomberg
A remote New Zealand farm has sold for more than NZ$30 million ($18 million), setting a record price for the South Island region of Queenstown that already boasts some of the nation’s most expensive real estate. Halfway Bay Station, an 18,000-hectare (44,479-acre) property on the shores of Lake Wakatipu, was sold by New Zealand-born mining magnate Chris Ellison and Australian billionaire Tim Roberts, said Mark Harris, managing director of Sotheby’s International Realty New Zealand, which brokered the transaction.
/jlne.ws/3QHTXgQ

Miscellaneous

Globalisation is not dying, it’s changing; Trade in goods may be slowing, but the potential for technology-enabled trade in services remains huge
Martin Wolf – Financial Times
What is the future of globalisation? This is among the biggest questions of our time. In June, I argued that, contrary to increasingly widespread opinion, “Globalisation is not dead. It may not even be dying. But it is changing.” Among the most important ways in which it is changing is via the growth of services provided at a distance. Since the industrial revolution, we have, argues Richard Baldwin in his book The Great Convergence, seen three waves of opportunities to trade. First, industrialisation and the revolution in transport generated opportunities for trade in goods. More recently, new information technologies allowed “trade in factories”: it became profitable to move entire factories to where labour was cheap. Today, however, the broadband internet allows “trade in offices”: if one can work for one’s employer from home, someone in India can do so, too.
/jlne.ws/3eOajr8

‘Work Hard, Play Hard’ and More Phrases That Can Scare Away Job Applicants; As quiet quitting gains momentum, some job seekers are calling out coded language in job postings
Ray A. Smith – The Wall Street Journal
When Becky Phillips, a pharmaceutical industry scientist, has looked for work, one phrase in job ads has turned her away from applying to otherwise promising-sounding opportunities: “fast-paced environment.” “Usually fast-paced sounds like that would be fun, like you’re going to make lots of progress on projects,” Ms. Phillips, 34 years old, said. “But, I think in practice, it just means that there’s no work-life balance.” As workers grow more vocal about finding fulfilling jobs that they can mostly perform from 9 to 5—a practice that has been called “quiet quitting” or “anti-hustle”—many job seekers are scrutinizing job postings for commonly used phrases they view as red flags for potential overwork.
/jlne.ws/3dgyoXe

The Billionaire Hedge Fund Manager Disrupting NFL Analytics; Paul Tudor Jones has co-founded a new company that has invested significant resources in developing technology that it believes can tackle one of the most complicated puzzles in sports: how to build a winning NFL team.
Andrew Beaton – The Wall Street Journal
Billionaire hedge-fund manager Paul Tudor Jones and his son Jack, a data scientist, first had a notion that there might be a smarter and more modern way to build a football roster when their fantasy team fell short year after year. Yet even fixing a fantasy team proved difficult. The more they looked into the technology available to help them improve, the more they felt it was inadequate or didn’t exist. And if they couldn’t fix their fantasy team, they wondered, could real NFL teams have the same problem?
/jlne.ws/3DofFn2

We visit more than 100 financial news websites daily (Would YOU do that?)

The Spread

Past JLN Newsletters

China commodity trader woe a setback for Glencore

China commodity trader woe a setback for Glencore

First Read Hits & Takes John Lothian & JLN Staff Congratulations to Larry Tabb. STA announced Larry as the 2022 Dictum Meum Pactum (DMP) Award recipient. Here is a success story for you. The Greenwood Project placed four interns at Goldman Sachs this summer...

Pin It on Pinterest

Share This Story