Hedge Fund 2-and-20 Fee Structure in SEC Chief’s Crosshairs

Nov 11, 2021

First Read

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


Hits & Takes
John Lothian & JLN Staff

Today is Veterans Day in the U.S. Today the NYSE and representatives of the U.S. military will observe a two-minute moment of silence at 9:20 a.m. to honor military service men and women. A single strike of the NYSE Bell at 9:20 a.m. will indicate the start of the moment of silence. — NYSE

Citadel’s Ken Griffin sure does not like Illinois Gov. J.B. Pritzker. According to the Crain’s Chicago Business report from a New York Times summit, “Griffin promises to bankroll a Pritzker challenger; “I’m going to make sure that if he runs again, that I am all in to support the candidate who will beat him.” — Crain’s Chicago Business

According to Bloomberg, there are three types of sharks that live in the Thames River, which was declared “biologically dead” back in 1957. There is no word on which banks the sharks work at.

Morningstar has a paper out titled “Beyond “Net Zero”: Supporting the Transition to a Climate-Resilient Planet.”

Maggie Peloso, a partner at Vinson & Elkins, joined the Modern Money Smart Podcast to talk about how the talks in Glasgow will shape the future of ESG investing and disclosure. — ModernMoneySmartPod.com

Also, the Museum of American Finance on Tuesday, December 7, 2021, 5:00 PM to 6:15 PM is holding a virtual panel discussion on “SPACs: The New IPO?” The panel will discuss the role of SPACs as an increasingly popular alternative to the more traditional IPO and includes Andrew Cohen: Founder & CIO, Difesa Capital Management, E. Ramey Layne: Partner, Vinson & Elkins LLP, David Panton: Managing Partner, SPAC Operations, Navigation Capital Partners, LP and Eklavya Saraf: Global Head of Spac Listings and Managing Director of Listing Services, Nasdaq. — Museum of American Finance.

I replaced the thumbnail of the Ed Tilly video because the first version of it looked like Cboe’s chairman, CEO & president was going to sneeze. Thank you to Bloomberg’s Larry Tabb for the heads up.

Later today we are publishing the FIA Expo interview we did with two TT CEOs, one outgoing and one incoming. Tim Geannopulos and Keith Todd were interviewed at Expo by Suzanne Cosgrove about the recent deal for 7Ridge to purchase Trading Technologies.

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

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


FOW has announced the shortlist for the FOW International Awards 2021. FOW will follow up on December 2 with an in-person ceremony to announce the 2021 winners and celebrate their excellence and achievements. If you are interested in joining them at the ceremony, you can contact William Browne at wbrowne@euromoneyplc.com for more information about tickets and table bookings.~SR

The CME Group’s FedWatch tool, which reflects price moves in the exchange’s fed funds futures contract, now suggests a 17.2% probability of a 25-basis-point rate hike at the Federal Open Market Committee’s March 22 meeting. That reading followed the Department of Labor’s Wednesday release of the U.S. consumer price index for October, an inflation gauge that showed a 6.2% increase last month compared with a year earlier. It was the largest 12-month increase since the period ending November 1990, the government said. More analysis is here.~SC


FIA Expo 2021 Video: Ed Tilly Lays Out Cboe’s Global Vision

John Lothian News interviewed Ed Tilly, chairman, president and chief executive officer of Cboe Global Markets, at FIA Expo last week following a panel with other U.S. exchange leaders. Cboe is expanding across all geographies and asset classes, and its vision for global growth is providing access to all of its customers, Tilly said in the video interview.

Watch the video »


FIA Expo 2021 Video: CFTC’s Stump Corrects Misperceptions, Talks Politics

CFTC Commissioner Dawn Stump rolled her eyes when asked who regulates cash cryptocurrency markets.

Speaking to John Lothian in a video interview following her keynote address last week at the FIA Expo, Stump said the question is “an unfortunate example” of what she sees as an ongoing mission to correct confusion over what agency regulates what entity.

Watch the video »


Sorry, Wall Street. You’re Going to Have to Work New Year’s Eve
Vildana Hajric – Bloomberg
New Year’s Day on a Saturday means work on Friday, Monday; ‘People are going to lose their minds,’ Bokeh’s Forrest says
It’s the Grinch That Stole New Year’s. Thanks to whoever created an obscure piece of New York Stock Exchange red tape — officially known as Rule 7.2 — U.S. equity markets won’t commemorate the start of 2022 with a holiday.

***** And just like that a bunch of people asked for a day off.~JJL


Ken Griffin thinks bitcoin will be replaced by ethereum and says the Reddit-fueled conspiracy theories about his involvement in the GameStop saga are like a bad SNL joke
Matthew Fox – Business Insider
Citadel’s Ken Griffin thinks bitcoin will be disrupted by a superior cryptocurrency based on ethereum’s blockchain in the future, according to a Wednesday interview with DealBook’s Andrew Ross Sorkin. The comments came after Griffin said the only way one can value cryptocurrencies is by hoping that someone will buy them at a higher price in the future. Griffin remains skeptical of crypto, and to this day sees no commercial use cases for bitcoin due to its large energy footprint, low transaction speeds, and vulnerability to fraud.

*****Wait, a bad SNL joke? Ken has no sense of humor, I guess.~JJL


Wednesday’s Top Three
Our top story Wednesday was Bloomberg’s The Unemployed Trader Who Became a $700 Million Exile, a video about Sanjay Shah and “the biggest tax heist in European history.” Second was the Cboe video on LinkedIn showing the exchange’s progress on the construction of its trading floor. Third was the FairX text exchange posted on LinkedIn to promote FairX’s trading over 10,000 contracts in a day.


MarketsWiki Stats
26,644 pages; 236,207 edits
MarketsWiki Statistics


Lead Stories

Hedge Fund 2-and-20 Fee Structure in SEC Chief’s Crosshairs
Ben Bain – Bloomberg
Gary Gensler, whose resume includes a stint at Goldman Sachs Group Inc., says he’s amazed that the hedge fund 2-and-20 fee model has prevailed in the decades since he left Wall Street. In his current gig leading the Securities and Exchange Commission, he’s signaling he wants to change that.

U.S. securities regulator halts Wyoming crypto firm’s tokens
Chris Prentice – Reuters
The U.S. securities regulator on Wednesday halted registration for two digital tokens offered by Wyoming-based American Cryptofed DAO LLC, accusing the company of providing misleading information to investors in regulatory filings.

Twitter Launches Cryptocurrency Team to Explore Bitcoin, Blockchain Uses; The Twitter Crypto group will set strategy to help the social-media app’s creators
Joseph Pisani – WSJ
Twitter Inc. is launching a dedicated crypto team. The social-media company said Wednesday it is assembling a team called ” Twitter TWTR -2.55% Crypto” to look into ways to help creators on the app to earn money or accept cryptocurrencies such as bitcoin for payment, and other ways to use blockchain technology.

SEC’s Gensler calls for sweeping reforms to private equity fee rules; Chair of US financial watchdog says he wants to simplify disclosures of increasingly complex charges
Antoine Gara and Chris Flood – FT
The US investment industry’s top regulator has called for sweeping reforms of the rapidly growing $4.2tn private equity industry, proposing rules to ensure clearer disclosures of funds’ expenses and their performance metrics. Gary Gensler, chair of the Securities and Exchange Commission, said he wanted to simplify and standardise the disclosure of fees, which have become increasingly complex as private equity firms introduce new layers of charges for consulting and handling their portfolio companies’ capital markets transactions.

Brussels to extend EU banks’ access to UK clearing houses past June 2022; European Commission seeks to avoid ‘cliff edge’ that could have posed risk to financial stability
Philip Stafford and Mehreen Khan – FT
Brussels will extend its temporary permit allowing European banks to access UK clearing houses, heading off a potential threat to financial market stability when the arrangement lapses next summer.

New plans emerge as clock ticks on accord for global carbon market rules; System for units linked to emissions seen as critical to helping to curb temperature rise
Camilla Hodgson and Leslie Hook – FT
With the clock ticking to the end of the Glasgow COP26 climate summit, a key element remains unresolved: the rules for global carbon markets that experts believe are critical to cutting the emissions behind climate change. Signs of breakthrough on one front emerged on Thursday as negotiators put forward a plan to create two types of emissions credits in order to resolve issues that have been outstanding for years.

US and China pledge co-operation over ‘existential’ climate crisis; Envoys Kerry and Xie produce unexpected joint declaration at COP26 summit
Leslie Hook – FT
The US and China made a rare joint declaration to co-operate on climate change, which the Chinese special envoy to the UN COP26 summit described as an “existential crisis”. In a high-stakes move during the final days of the summit, the Chinese and US climate envoys indicated they had found common ground.

Coinbase CEO Says NFTs Could Be ‘As Big or Bigger’ Than Crypto Trading
Olga Kharif – Bloomberg
Coinbase Global Inc. co-founder Brian Armstrong says the market for non-fungible tokens could rival or even be larger than the company’s cryptocurrency business.

Citadel’s Ken Griffin calls accusations that his market makers colluded with Robinhood ‘a bad comedy joke’
Thornton McEnery – MarketWatch
The Citadel Securities founder knows funny, and saying that his firm plotted to stop the GameStop short squeeze is not it.

UK and EU in danger of “Balkanisation” of liquidity if they diverge too much, says equities head; Speaking at TradeTech 2021, head of equities at Premier Miton warned that too much regulatory divergence could lead to friction caused by a fragmented liquidity landscape.
Annabel Smith – The Trade
A buy-side head of equities trading has warned that too much regulatory divergence between the EU and the UK following Brexit could lead to the “balkanisation of liquidity”. Speaking in a regulatory fireside chat alongside the UK’s Financial Conduct Authority, head of equities at asset manager Premier Miton, Gervais Williams, told the audience that the UK and EU’s increasingly different approaches to regulating the capital markets could lead to a fragmented and friction-filled landscape for participants to navigate.

Has cryptocurrency become too ‘mainstream’ in India to be banned? Considering cryptos’ growing popularity among millennials and the sector’s employment potential, can India realistically completely ban – or even partially ban – the technology? Let’s understand
Harshit Rakheja – Business Standard
Ahead of the winter session of Parliament, source-based media reports are again speculating that the pending Bill to regulate cryptocurrencies will come up in this session. But unlike the reports in February this year, which were suggesting a complete ban on cryptocurrencies, a complete ban appears unlikely this time around. The reason, sources say, is that crypto in India has become too big for a ban.

FTX US Reports Third Quarter 2021 Trading Results and Provides Operational Update
Q3 2021 Trading Highlights
West Realm Shires Services Inc (“FTX US” or “the Company”), a leading US-regulated cryptocurrency exchange, today announced its corporate business update for Q3 2021.


Covid Has Changed Socialized Medicine in Britain Forever; The private sector’s role in supporting the NHS through the pandemic should launch a reckoning over what a post-Covid era needs.
Therese Raphael – Bloomberg
Socialized medicine did not, as some predicted, collapse during Covid. Britain’s National Health Service was stretched to the limit but never overwhelmed. It’s the current phase of the pandemic that’s proving to be the bigger stress test.

Europe Is Experiencing Two Very Different Pandemics; There’s a deadly continental divide opening up between countries in the west fighting complacency and those in the east fighting vaccine hesitancy.
Lionel Laurent – Bloomberg
A year ago, the course of the pandemic changed, thanks to the first safe and effective vaccines against Covid-19. Today, after administering 7.3 billion doses and preventing countless deaths, we have more data than ever to justify that early enthusiasm — and the need to keep jabbing.

Covid Pills May Save Lives, But They Won’t End the Pandemic; While new treatments from Pfizer and Merck have the potential to keep people out of the hospital, vaccines are still the best weapon for fighting Covid.
Cynthia Koons, Emma Court, Robert Langreth – Bloomberg
The promise of new Covid-19 pills from Pfizer Inc. and Merck & Co. gives rise to the hopeful question: Is this how the pandemic ends? The best answer anyone can muster is “maybe.” No matter how effective the antiviral pills are, it will be months before we can say we’re near the end.

Moderna Is Selling Covid Vaccine to African Union at Lower Price
Janice Kew – Bloomberg
Price of $7 a shot is below $25 to $37 range CEO had given; Moderna has agreed to supply African Union 110 million doses
Moderna Inc. is selling its Covid-19 vaccine to the African Union at $7 a dose, much less than the price other countries paid for the shot earlier this year.

‘Nein Danke’: the resistance to Covid-19 vaccines in German-speaking Europe; Hesitancy in Austria, Germany and Switzerland intersects with anti-establishment and populist politics
Sam Jones in Zurich and Guy Chazan – FT
As Switzerland kicked off a mass Covid-19 vaccination drive, riot police formed lines around Zurich’s main train station. Their mission: to protect a new “vaccination village” in the station hall from angry protesters.

The Vaccine Mandate Kicks In at 100 Employees. What If You’re at 98? For small businesses hovering just under the federal vaccination guidelines, navigating this period is tricky.
Emma Goldberg – NY Times
Christie Thompson’s company, which sells and services semitrailers, is looking to fill a handful of open positions. But the challenge isn’t just finding qualified workers. Currently, 98 people work at the company. Adding two more employees would mean crossing the 100-person threshold that the Biden administration set as its standard for compliance with a new rule requiring large companies to mandate coronavirus vaccines.

Fatty acid found in palm oil linked to spread of cancer; Study on mice found palmitic acid promoted metastasis in mouth and skin cancers
Hannah Devlin – The Guardian
Scientists have shown how a fatty acid found in palm oil can encourage the spread of cancer, in work that could pave the way for new treatments. The study, on mice, found that palmitic acid promoted metastasis in mouth and skin cancers. In future, this process could be targeted with drugs or carefully designed eating plans, but the team behind the work cautioned against patients putting themselves on diets in the absence of clinical trials.

Don’t expect workers to quit if COVID-19 vaccines are mandated, GM CEO says
Reuters Staff
General Motors Co Chief Executive Officer Mary Barra said on Wednesday she does not expect workers would quit if the No.1 U.S. automaker mandates COVID-19 vaccinations.

Exchanges, OTC and Clearing

LCH welcomes European Commission’s planned extension to CCP equivalence; European Commissioner intends to minimise short-term risk of disruption through the extension.
Richard Schwartz – The Trade
The London Stock Exchange Group’s LCH has welcomed an announcement by European Commissioner for Financial Services, Mairead McGuiness, of her intention to propose the extension of the equivalence decision for UK CCPs. “As a systemically important institution, LCH Ltd’s priority remains to ensure the orderly functioning of markets to support financial stability. We will continue to engage and cooperate with the relevant regulatory authorities in order to continue offering all clearing services to our customers,” said an LCH spokesperson.

Changes in the management and exchange councils of the Frankfurt Stock Exchange and Eurex Deutschland
Deutsche Börse Group
The Exchange Council of the Frankfurt Stock Exchange (FWB) has appointed Eric Leupold, head of the cash market of Deutsche Börse AG, as a new member of the management of FWB. He also takes over the chairmanship of the management. Dr. Cord Gebhardt was elected as the new deputy chairman by the management. Furthermore, the Exchange Council of Eurex Deutschland has appointed Jonas Ullmann, Member of the Management Board of Eurex Frankfurt AG and Chief Operating Officer, as a new member of the Management Board of Eurex Deutschland. At the same time, Dr. Thomas Book, Board Member Trading & Clearing at Deutsche Börse AG, stepped down from the two bodies.

SPEAR Investments I B.V. lists on Euronext Amsterdam
SPAC listing raises EUR175 million; 18th SPAC-listing on Euronext’s markets in 2021; Multi-disciplinary, pan-European team supported by two sponsor firms
Amsterdam – 10 November 2021 – Euronext today congratulates SPEAR Investments I B.V. (SPEAR), a special purpose acquisition company (SPAC), on its listing on Euronext Amsterdam (ticker code: SPR1). It is the 18th SPAC-listing on Euronext markets in 2021.

Nasdaq Expands its European ESG Derivatives Offering with Options
Nasdaq (Nasdaq: NDAQ) today announced the launch of options contracts on the OMX Stockholm 30 ESG index. With the new contracts, Nasdaq’s ESG derivatives offering now includes both options and futures contracts based on the world´s first ESG benchmark index, which has grown into one of the most traded indexes in Europe since being launched in June 2018.

Nasdaq Private Fund Manager Diversity, Equity and Inclusion Data Will be Free to Investors on February 16, 2022; Nasdaq Working with ILPA and FCLTGlobal to Ensure Data Standardization
Nasdaq has today announced that it will collect and make its private fund manager diversity, equity, and inclusion (DEI) data available for investors free of charge via the Nasdaq eVestment platform in an effort to improve transparency and disclosure standardization across the industry. The data will be available starting on February 16, 2022.

SGX reports market statistics for October 2021
Risk-management demand drives volume gains in equities, FX and commodities; Strong ETF market participation across retail and institutional client segments
Singapore Exchange (SGX) today released its market statistics for October 2021. Risk-management demand drove volume gains across multiple asset classes, as investors weighed global economic optimism against uncertainty over the pace of China’s recovery.

SGX welcomes Trans-China Automotive Holdings Limited to Catalist
Singapore Exchange (SGX) today welcomed Trans-China Automotive Holdings Limited to its Catalist under the stock code “VI2”.

Montreal Exchange Interest Rate Derivative Market Closed Today, November 11, 2021
The interest rate derivative market is closed today, November 11, 2021.

— Availability of a Shanghai Gold (USD) Futures and Gold Futures Intercommodity Spread on CME Globex and CME ClearPort — CME
— EBS Market Integration Notice: New and Updated Content — CME
— Change for Silver Brands — CME
— Product Modification Summary: Administrative Amendments to Forty-Seven (47) NYMEX Freight Futures and Options Contracts – Effective December 06, 2021 — CME


BGC’s Fenics managing director joins Liquidnet to head up fixed income; New global head of fixed income product, services and dealer relations will continue the expansion of Liquidnet’s fixed income division following its acquisition by TP ICAP.
Annabel Smith – The Trade
Institutional trading network Liquidnet has appointed a former BGC Fenics managing director to head up its newly expanded fixed income division. Nicholas Stephan joins Liquidnet as its new global head of fixed income product, services, and dealer relations from electronic corporate bond trading venue, Fenics DeltaX.

Cloud Adoption In Banking Accelerates As Banks Ramp Up Digital Services, Reports Economist Intelligence Unit – 72% Say Moving To The Cloud Will Help Their Organization Achieve Its Business Priorities
In a new survey of IT executives in the banking sector, conducted by The Economist Intelligence Unit and supported by Temenos (SIX: TEMN), more than seven in ten (72%) report that incorporating the cloud into their organization’s products and services will help them to achieve their business priorities. Just under half (47%) say that it will do so “to a great extent”.

How Blockchain Technology Is Transforming Microtransactions and Revitalizing the Gaming Industry; A new gaming model is emerging based on real asset ownership and a new “play-to-earn” structure.
Shreyansh Singh
Microtransactions are a staple of many modern games, to the point many have just accepted them. However, new models are emerging, thanks to blockchain technology, that stand to disrupt the norm. Play-to-earn games are growing in popularity, and new services are lowering the cost of entry. These innovations are set to become the catalyst to create a true vision of the coming metaverse.

APX Launches ESGclear; Trusted industry platform drives transparency and certainty for contracts and transactions that are material for ESG reporting, financing, and mitigation across supply chains
APX, the preeminent environmental commodities infrastructure provider, today announced the launch of ESGclear. ESGclear is an innovative data clearing platform that enables buyers, sellers, and other transacting parties to easily capture, track, settle, and bill against the environmental, social, and governance (“ESG”) footprint tied to their supply chain transactions or financing activities. ESGclear creates a transparent and reliable way for companies to measure, manage, and report the full scope of their supply chain emissions and other ESG impacts.

EC ends S&P’s 53-year era as Cusip’s “cash-cow” operator; Sources ID Ice and DTCC as suitors, but new owners may not bring relief to users paying millions.
Rebecca Natale – Waters Technology
For over half a century, Standard & Poor’s Global Market Intelligence has operated the Committee on Uniform Security Identification Procedures—Cusip—on behalf of the American Bankers Association (ABA), the owner and founder of the reference data standard. But now, the European Commission has stipulated that in the ongoing merger between S&P Global and IHS Markit, S&P must divest Cusip, which observers say has been a ready and ample source of income for the data company since the ABA selected it


Gmail accounts are used in 91% of all baiting email attacks
Bill Toulas – BleepingComputer.com
Bait attacks are on the rise, and it appears that actors who distribute this special kind of phishing emails prefer to use Gmail accounts to conduct their attacks. According to a report by Barracuda, who surveyed 10,500 organizations, 35% of them received at least one bait attack email in September 2021 alone.

SMS About Bank Fraud as a Pretext for Voice Phishing
Krebs on Security
Most of us have probably heard the term “smishing” — which is a portmanteau for traditional phishing scams sent through SMS text messages. Smishing messages usually include a link to a site that spoofs a popular bank and tries to siphon personal information. But increasingly, phishers are turning to a hybrid form of smishing — blasting out linkless text messages about suspicious bank transfers as a pretext for immediately calling and scamming anyone who responds via text.

Experts tout $2 billion in cybersecurity funding in Biden’s infrastructure bill
Jonathan Greig – ZDNet
Congress passed a bipartisan $1 trillion infrastructure bill on Friday that included about $2 billion in cybersecurity funding. The bill — now heading to President Joe Biden’s desk — includes $1 billion in state, local, tribal and territorial cyberdefense grants, $100 million for the Department of Homeland Security, and $21 million for National Cyber Director Chris Inglis.

Harris, Macron unveil new initiatives on space, cybersecurity after meeting
Morgan Chalfant – The Hill
Vice President Harris on Wednesday announced new initiatives with France on space and cybersecurity following a meeting with French President Emmanuel Macron in Paris.
The White House said that Harris and Macron agreed to launch a “comprehensive” bilateral dialogue on space through which U.S. and French officials will work together to address issues like climate change, expand space exploration, and expand access to science, technology, engineering and mathematics (STEM) education.

DFS Issues New Guidance Regarding Cybersecurity Regulation and the Adoption of an Affiliate’s Cybersecurity Program
Patterson Belknap Webb & Tyler LLP – JDSupra
On October 22, 2021, the New York State Department of Financial Services (“DFS”) issued new Guidance regarding a Covered Entity’s compliance with New York’s Cybersecurity Regulation where the Covered Entity relies on the cybersecurity programs of an Affiliate.[1] The Guidance provides much-needed clarity on a topic that impacts many entities subject to the DFS Regulation.

Cybersecurity Without Automation And Intelligence In Today’s Digital World Is Like “Bringing A Knife To A Gunfight”
Lalit Ahluwalia – Forbes
Do you ever wonder why organizations fall prey to cyberattacks despite spending millions on cybersecurity? After over three decades of improving cyberdefense mechanisms, what is driving the need for further enhancing risk posture?
Lack of automation and security intelligence has slowed down the scaling of cybersecurity techniques and their ability to protect against new threats. For example, one of the critical first steps in establishing a cybersecurity management program — identifying assets and classifying data — takes months or weeks when done manually.


Crypto Is Forbidden for Muslims, Indonesia’s National Religious Council Rules
Arys Aditya – Bloomberg
The use of crypto assets as a currency is forbidden for Muslims, according to Indonesia’s council of religious leaders. The National Ulema Council, or MUI, has deemed cryptocurrency as haram, or banned, as it has elements of uncertainty, wagering and harm, Asrorun Niam Sholeh, head of religious decrees, said on Thursday after the council held an expert hearing. If cryptocurrency as a commodity or digital asset can abide by Shariah tenets and can show a clear benefit, then it can be traded, he added.

Coinbase and Binance Among 70 Seeking Singapore Crypto Permits
Chanyaporn Chanjaroen – Bloomberg
Last year’s applicants for local crypto licenses totaled 170; Information based on Monetary Authority of Singapore website
Singapore units of Coinbase Global Inc. and Binance Holdings Ltd. are among the remaining 70 applicants for a license to provide cryptocurrency services in the Asian financial hub.

Investors Embrace NCSoft’s NFT-Based Videogame Plan
Youkyung Lee – Bloomberg
NCSoft Corp. shares surged by their daily limit as excitement over the South Korean gamemaker’s new title based on non-fungible tokens outweighed concerns over a third-quarter earnings miss.

Agency Home to Bieber and BTS Plans NFT Trading Empire
Sohee Kim – Bloomberg
Hybe Co., which last week announced a new blockchain business offering digital assets, is already contemplating expanding its marketplace for non-fungible tokens with celebrities beyond its stable of pop superstar acts like BTS and Justin Bieber.

CryptoUK Appoints Rob McWilliam As Non-Executive Director
CryptoUK, the trusted voice of the UK crypto industry, has today announced the appointment of Rob McWilliam as its new non-executive director (NED). Mr McWilliam has held executive roles at two of the most customer-centric businesses in the world, as finance director and vice president of Amazon UK and most recently as chief financial officer of Asda Walmart.

CoinShares Appoints Christine Rankin and Viktor Fritzén as Independent Non-Executive Directors
CoinShares International Limited
CoinShares International Limited, (Nasdaq First North Growth Market: CS) (“CoinShares” or the “Group” or the “Company”) today announced that the Board has elected to appoint Christine Rankin and Viktor Fritzén as Independent Non-Executive Directors of the Company, effective Monday, 8 November 2021.

Crypto-Art Event Mixes Beeple, Warhol in Singapore Vault
Joanna Ossinger – Bloomberg
‘Right Click + Save’ explores history of crypto communities; Exhibition located at high-security fine-art storage facility
A collaboration between cryptocurrency platform Coinhako and Appetite, an art and culinary concept, has led to an exhibition of digital art in Singapore that includes works by Andy Warhol, Beeple and Sarah Meyohas.

A Digital Singapore Dollar May Be Too Much of a Good Thing; The city-state is swimming against the tide, concerned that a central bank digital currency could over-succeed and undermine financial stability.
Andy Mukherjee – Bloomberg
The world may be going crazy over digital currencies, but tiny Singapore is swimming against the tide. The central bank has decided against offering a paperless version of the city-state’s legal tender — at least for now. Not because an electronic version of cash may flop, but because it’ll most likely be a hit. That could have consequences for the island’s financial stability and conduct of monetary policy. Even if those risks are manageable with in-built safeguards, why rock the boat?

Why a Crypto Rewards Credit Card Is Probably a Bad Idea; For most borrowers, a simple cash back card is always going to be the better option.
Mike Winters – Likehacker.com
With crypto rewards cards, a small percentage of your purchases can be redeemed for cryptocurrency instead of cash back or points redeemed in a rewards portal. But just because you can combine your credit card rewards with cryptocurrency speculation, doesn’t mean you should, as less risky cash back redemptions might offer you more value in the long run.

Robinhood says it might not need coins like Shiba Inu on its platform
Grady McGregor – Fortune
On Tuesday, Christine Brown, the chief operating officer of Robinhood Crypto, said that Robinhood is not in a rush to add new cryptocurrency coins to its trading platform, dampening hopes that it will list the popular meme coin Shiba Inu.

Binance remains the world’s most popular crypto exchange with 170 million visitors in October
For years, Binance has remained a top cryptocurrency exchange attracting diverse users globally. However, recently the exchange has faced regulatory woes but has managed to retain a high number of visitors. According to data acquired by Finbold, Binance recorded the highest web traffic among digital currency exchanges in October this year at 171 million. The number of visitors grew 12% from September’s figure. Coinbase emerged, second adding 31% more visitors in October to 91 million. PancakeSwap ranks third with 25 million visitors.


China Elite Hand Xi Key Victory, Paving Way for Indefinite Rule
Bloomberg News
Xi clears final major huddle before 2022 leadership conference; Document says Xi central to meeting goals set through 2049
President Xi Jinping delivered the first doctrine on Communist Party history by a Chinese leader in 40 years, giving him a mandate to potentially rule for life as a major meeting wraps up in Beijing. The approval of the landmark document was announced in a communique Thursday, the official Xinhua News Agency said, as the four-day plenum at a military hotel in Beijing closed. Only Mao Zedong and Deng Xiaoping have authored a so-called historical resolution, and both went on to dominate party politics until they died. The full text of the resolution hasn’t been released yet.

Singapore’s Lee Urges APEC to Help Firms Embrace Digital Trade
Philip Heijmans – Bloomberg
Prime minister calls on bloc to ensure workers make transition; Singapore forging digital economy deals with range of nations
Singaporean Prime Minister Lee Hsien Loong said the Asia-Pacific Economic Cooperation bloc should extend its scope to cover the digital economy, warning that smaller companies in the 21-member grouping risk falling behind the rest of the world.

Griffin promises to bankroll a Pritzker challenger; “I’m going to make sure that if he runs again, that I am all in to support the candidate who will beat him,” the Citadel founder said at a New York Times event today.
Katherine Davis – Crain’s Chicago Business
Billionaire Ken Griffin says he is still considering moving his hedge fund firm Citadel out of Chicago, due to rising crime and what he considers to be a subpar job by Gov. J.B. Pritzker to address the issue.

The infrastructure bill makes crypto tax-reporting failures a felony
Scott Nover – Quartz
Crypto advocates have worried for months about US president Joe Biden’s $1 trillion infrastructure bill, which includes new tax reporting requirements for “digital assets” like cryptocurrencies and nonfungible tokens (NFTs).


McKinsey partner accused of insider trading on Goldman Sachs deal; US prosecutors say he made a profit of more than $450,000 from alleged scheme
Mamta Badkar and Joshua Franklin, and Stefania Palma – FT
US prosecutors have charged a partner at consulting firm McKinsey with securities fraud for alleged insider trading ahead of Goldman Sachs’ $2.2bn acquisition of online loans provider GreenSky, accusing him of using privileged information to turn a profit of more than $450,000.

California Businessman Is Sentenced to 30 Years in $1 Billion Ponzi Scheme; Jeff Carpoff, 50, ran a Ponzi scheme with his wife that sold nonexistent solar generators to investors, prosecutors said.
lyssa Lukpat – NY Times
An owner of a California solar company was sentenced this week to 30 years in prison for orchestrating a $1 billion Ponzi scheme and using the money to make extravagant purchases, including luxury estates, more than 100 cars and a minor league baseball team, federal prosecutors said.

Industry funding: 2020-21 Cost Recovery Implementation Statement
ASIC today published its 2020-21 Cost Recovery Implementation Statement (CRIS) as required under the industry funding model. The statement details ASIC’s estimated levies by industry sector and subsector. ASIC released the draft CRIS in July 2021 (ASIC MR21-185) for industry feedback. The final statement summarises the feedback we received. The actual levies will be published in December 2021 and invoiced in January 2022.

Whistleblower policies and the compliance gap; Speech by ASIC Commissioner Sean Hughes at the 3rd Australian National Whistleblowing Symposium, Thursday 11 November 2021.
Check against delivery
I begin by acknowledging the Traditional Custodians of the lands I am on today, the Boon Wurrung and Woiwurrung people of the Kulin nation. I pay my respects to their elders past, present and emerging, and extend that respect to Aboriginal and Torres Strait Islander peoples joining the symposium today.

Entrepreneurship in Rural and Under-Resourced Areas on Agenda for Small Business Capital Formation Advisory Committee Meeting; Agenda Includes Treasury Update on $10 Billion State Small Business Credit Initiative
The Securities and Exchange Commission’s Small Business Capital Formation Advisory Committee today released the agenda for its virtual meeting on Tuesday, Nov. 16, when it plans to explore ways to foster entrepreneurship and capital access in rural and under-resourced areas.

SEC Issues Awards Totaling More Than $15 Million to Two Whistleblowers
The Securities and Exchange Commission today announced awards of more than $12.5 million and $2.5 million to two whistleblowers whose information and assistance led to a successful SEC enforcement action.

Registration of Two Digital Tokens Halted
The Securities and Exchange Commission today instituted proceedings against American CryptoFed DAO LLC, a Wyoming-based organization, halting the effectiveness of the company’s registration of two digital tokens as securities. In the SEC’s order instituting proceedings, the Enforcement Division alleges that on Sept. 16, 2021, American CryptoFed filed a materially deficient and misleading registration form known as a Form 10, which purported to register two digital tokens issued by American CryptoFed – called the “Ducat” and “Locke” tokens – as equity securities. The Enforcement Division alleges that the Form 10 failed to contain certain required information about the two tokens as well as about American CryptoFed’s business, management, and financial condition, including audited financial statements. The Enforcement Division further alleges that the Form 10 contains materially misleading statements and omissions, including inconsistent statements about whether the “Ducat” and “Locke” tokens are securities, and statements relating to American CryptoFed’s purported intention to distribute (upon the effectiveness of its Form 10) its “Locke” tokens to the public using a Form S-8, which is a registration form used for securities offered to employees through employee benefit plans, without disclosing that the “Locke” tokens may not legally be distributed pursuant to a Form S-8.

ESMA publishes technical standards on crowdfunding
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today published a Final Report on technical standards (RTS and ITS) under the Crowdfunding Regulation (ECSPR). This marks an important milestone towards harmonising the new European crowdfunding regime.

2021 FINRA Small Firm Virtual Conference: Regulation Best Interest and Form CRS

CFTC Grants Order to LCH SA Permitting Portfolio Margining of Swaps and Security-Based Swaps in a Cleared Swaps Customer Account
The Commodity Futures Trading Commission announced today that it has issued an order granting a request made by Banque Centrale de Compensation, doing business as LCH SA, a CFTC-registered derivatives clearing organization (DCO), under Section 4d(f) of the Commodity Exchange Act (CEA).

Stewardship Code: 320 institutional investors have signed up to the Principles for Responsible Institutional Investors as of October 31, 2021
FSA – Japan
The Council of Experts Concerning the Japanese Version of the Stewardship Code (Chairman: Professor Hiroyuki Kansaku, University of Tokyo Graduate Schools for Law and Politics) published the Principles for Institutional Investors (Japan’s Stewardship Code, hereinafter referred to as “the Code”) on February 26, 2014.

What’s New on the FSA Website; Week of October 29, 2021 – November 4, 2021
FSA – Japan
This page contains the latest in events, developments, and updates to the FSA website.

The Lessons of Structured Data
Commissioner Caroline A. Crenshaw – SEC
Thank you Mike [Schlanger] for that introduction, and thank you for inviting me to speak at this year’s conference. I want to note at the outset that I appreciate all the work this organization does to support structured data, including enhancing the usefulness of the data in SEC filings. The work you do benefits the users of that data, including investors, academics, and of course, the SEC staff and other regulators. You have been vocal and energetic advocates for XBRL, and I appreciate that. So thank you.

Prepared Remarks At the Institutional Limited Partners Association Summit
Chair Gary Gensler -SEC
Thank you. As is customary, I will note that I am not speaking on behalf of the Commission or SEC staff. Today, I’d like to talk about private funds, and the importance of certain of these funds — in particular, private equity and hedge funds — to our capital markets. Why do these funds matter?

Ontario Securities Commission Dialogue 2021: Creating Conditions For Growth
The Ontario Securities Commission’s (OSC) signature annual conference, OSC Dialogue takes place virtually on Tuesday, November 23, 2021.

Investing and Trading

Liquidity drought in Treasury market accompanies unexpected rally; Bond price rises defy economic data while regulators seek to address trading problems
Kate Duguid – FT
The trading climate in the $22tn US government bond market has become less hospitable, adding to choppy moves in securities that act as a foundation of the global financial system.

Big impact for small central banks shocks global bond investors; ‘Dude, you don’t matter much, so why is the BoE driving our market?’
Tommy Stubbington and Kate Duguid – FT
When the Bank of England sprang a surprise last week by keeping interest rates on hold, the impact quickly spread beyond UK government bonds. The ensuing rally in the gilt market, as traders unwound their bets on UK rate rises, also jammed yields sharply lower on eurozone bonds and US Treasuries.

Environmental, Social and Corporate Governance

U.S., China Surprise Summit With Joint Commitment: COP26 Update
Bloomberg News
The U.S. and China pledged to work together on climate this decade, giving a jolt to the COP26 talks that are in their homestretch. A chorus of experts and officials welcomed the announcement.

India Wants $1 Trillion Before It Raises Targets to Cut Emissions; The world’s third-biggest emitter also opposes a push at the COP26 climate talks to phase out coal and end subsidies for oil and gas.
Akshat Rathi and Archana Chaudhary – Bloomberg
India has named its price in high-stakes climate talks: if the rich countries want it to cut planet-warming emissions, they need to come up with $1 trillion of public cash by the end of the decade.

Methane Plume Seen by Satellite Over Alabama Mystifies Experts
Naureen S Malik and Aaron Clark – Bloomberg
Spew was among largest detected by satellite in U.S. this year; Region is home to old coal mines and natural gas wells
A large methane plume was spotted over northwestern Alabama near natural gas and coal sites three weeks ago — though regulators have been unable to identify what spewed out the harmful greenhouse gas.

Billionaire Zara Owner Builds Energy Bet With Wind Farm Stake
Rodrigo Orihuela – Bloomberg
Amancio Ortega, the billionaire founder of the Zara clothing brand, bought a stake in a renewable energy project from Repsol SA. Ortega’s family office Pontegadea will pay 245 million euros ($281 million) for a 49% stake in Repsol’s Delta wind farm in the Spanish province of Zaragoza, according to a statement from the Madrid energy company Thursday.

Big business and COP26: are the ‘net zero’ plans credible? Companies have been in a congratulatory mood in Glasgow. But critics say their efforts to cut emissions are too vague
Andrew Edgecliffe-Johnson and Simon Mundy – FT
With the greatest respect, Prince Charles told world leaders at the COP26 summit last week, the private sector offered the only prospect of achieving the fundamental economic overhaul needed to avert a climate disaster.


Goldman Sachs’s Top Trades Reveal Uncomfortable Truth; The Wall Street bank’s calls for the year ahead implicitly acknowledge that the headwinds for the U.S. stock market are becoming much stiffer.
Robert Burgess – Bloomberg
It’s that time when Wall Street firms start releasing their top trade ideas for the year ahead. Goldman Sachs Group Inc. was one of the first out of the box, and its suggestions reveal a lot about the supercharged environment for risky assets such as stocks that investors have enjoyed in the pandemic era without actually saying much.

Credit Suisse Legal Woes Weigh on Revamp Plan; Even before the twin disasters of Archegos and Greensill, the scandal-prone bank was among the world’s most heavily fined
Margot Patrick – WSJ
Credit Suisse Group AG CS -1.08% is vowing to end reckless risk taking at the bank. The cost of earlier misdeeds are likely to keep biting back for years, weighing on efforts to put the past behind it.

Citi hires from Credit Suisse to bolster prime brokerage team in EMEA; Former head of capital introduction and prime consulting at Credit Suisse joins up with Citi in EMEA role.
Jonathan Watkins – The Trade
Citi has hired Vincent Vandenbroucke from Credit Suisse as its EMEA head of prime brokerage consulting, following the Swiss bank’s pullback from the space. Vandenbroucke was formerly EMEA head of capital introduction and prime consulting at Credit Suisse during his seven years with the bank.

Union Investment will be ready to trade native crypto from next year, says head of trading; Asset manager is working with custodian on a crypto custody solution in order to trade native cryptocurrency products.
Jonathan Watkins – The Trade
As asset managers ponder their involvement in trading cryptocurrency and digital asset-related products, Union Investment’s head of trading has said it is discussions with custodians in order to be ready to trade native crypto from the middle of next year.

Citi’s Action for Racial Equity Initiative Invests $1 Billion to Address the Racial Wealth Gap in the U.S.; Year One Results Outpace Plan to Deliver on the Three-Year Commitment
Business Wire
Citi and the Citi Foundation announced today the Action for Racial Equity initiative has already invested $1 billion in strategic initiatives to help close the racial wealth gap and increase economic mobility in the United States in year one of a three-year commitment. Announced in September 2020, Citi’s Action for Racial Equity is a comprehensive approach to 1) provide greater access to banking and credit in communities of color, 2) increase investment in Black-owned businesses, 3) expand affordable housing and homeownership among Black Americans and 4) advance anti-racist practices in its company and the financial services industry. Citi is on track to far exceed its original $1.1 billion commitment.

U.S. Bank Sets Goal to Achieve Net Zero Greenhouse Gas Emissions by 2050; The company also sets goal to source 100% renewable electricity by 2025 and sets an environmental finance goal of $50 billion by 2030
Business Wire
U.S. Bank today announced several company-wide commitments to address the impacts of climate change on its business, customers and communities, including:


Feud at Smithfield Foods’ Parent Company Shows Messy Underside of Chinese Takeover; Son offers details about his estrangement with his father over WH Group’s strategy, including whether American pork products can fit in with Chinese tastes
Wenxin Fan – WSJ
A Chinese meat company’s takeover of Virginia-based Smithfield Foods was meant to be the crowning achievement for Wan Long, the aging former slaughterhouse manager who engineered the deal. Instead, the $4.7 billion merger has now estranged him from his eldest son.

China Borrows Again at Negative Rates in Euros; China sells negative-yielding three-year notes as part of $4.6 billion deal
Frances Yoon – WSJ
China sold about $4.6 billion of bonds denominated in euros, taking advantage of superlow yields in the eurozone to raise shorter-term funds at negative rates for the second year running.

Swedish oil executives charged with complicity in Sudan war crimes; Lundin case is first prosecution of corporate bosses for such serious offences since Nuremberg trials
Richard Milne – FT
The main owner and former chief executive of Lundin Energy have been charged with complicity in grave war crimes in Sudan, the first prosecutions of corporate managers for such serious offences since the Nuremberg trials.


Empathy is the go-to leadership skill of the moment—and yes, it can be learned
Chris Taylor – Fortune
This story is part of Fortune’s Leadership Report on the issues and trends reshaping the C-suite now.
As a brand-new Fortune 500 CEO, Zoetis’s Kristin Peck didn’t have all the answers as to how the fast-growing pet health company was going to survive the pandemic. She had only ascended to the corner office in January of 2020: So when COVID started to rev up by March, she was feeling nervous, anxious, and frankly a little overstretched, and figured that the company’s 11,300 workers probably were, too.

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