High-Frequency Traders Push Closer to Light Speed With Cutting-Edge Cables

Dec 15, 2020

First Read

$18,761/$300,000 (6.3%)

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Hits & Takes
John Lothian & JLN Staff

We now have comments from the following people on our George Gero remembrances page: Terry Duffy, Walt Lukken, John Damgard, Gary DeWaal, Joe Raia, Bobby Ahrens, Stephen Rosenberg, Neal Wolkoff, Bill Hemmers, Al London, Alan Karmin, David Greenberg, Nick Mercurio, Gary Greenberg, Robert DiSarro and Arthur Gary Flagler. We have more to add for tomorrow.

If you have a remembrance of George Gero, please email me at johnlothian@johnlothian.com

Dan Collins, formerly of Futures Magazine, wrote a profile on the late George Gero for the publication back in 2010. And don’t forget Sarah Rudolph‘s interview with George for John Lothian Profiles, an early history series.

One American dies every minute due to COVID-19, and the rate is increasing as the number of deaths has exceeded 300K, CNN reported.

The Cleveland Indians Baseball team recently declared they were changing the name of their team and would drop the use of the name “Indiians.” This created conjecture on what other teams with unfortunate names might also consider such name changes, including the Atlanta Braves. Fortunately, Sen. Kelly Loeffler and Sen. David Perdue took time out from the busy election campaigns to weigh in on the subject and warn the Braves against changing their name, according to a New York Post story. They gave the idea an ole tomahawk chop right to the chops.

ICAP’s ‘Virtual’ Charity Day Raised £3.6m, MarketsMedia reported.

This is the last week for the FIA’s Futures For Kids Auction. Find out more HERE.

There were no new donations to the JLN MarketsWiki Education GoFundMe campaign yesterday. Help support our efforts to preserve industry history by donating to our GoFundMe campaign. Is it your turn to give?

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

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Eventus Systems has passed along the direct link to last week’s webinar on digital asset trade surveillance featuring a discussion with Michelle Bond from the Association for Digital Asset Markets. The link is here. Enjoy!~Thom Thompson

Marex Spectron announced Monday that it has become a trading privilege holder of Cboe Futures Exchange (CFE) and a clearing member of The Options Clearing Corporation (OCC). You can see the press release here. There is also a story from The Trade under Exchanges below.~SR

Digital asset fund manager Grayscale Investments has tweeted that it now has over $13 billion worth of cryptocurrency under management.~MR

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Hemp: ‘An Economic Experiment on a Grand Scale’
JohnLothianNews.com

JLN Editor Thom Thompson explains the twists and turns of the 2020 hemp market and looks ahead to 2021.

Watch the video »

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George Gero, an ‘Institution’ of Gold Industry, Dies at 84
Joe Deaux and Justina Vasquez – Bloomberg
RBC adviser spent more than 50 years trading precious metals; Gero was always drawn to gold for its store of value
George Gero, a financial adviser known throughout the gold industry, who claimed he traded one of the first-ever gold contracts in New York, has died. He was 84. He died on Dec. 12 at his home, according to his obituary with Levine Memorial Chapel. No cause was given.
/bloom.bg/2K5BGOb

*****My comments in yesterday’s newsletter about George are quoted in this Bloomberg story.~JJL

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How London grew into a financial powerhouse; Charting the growth of London’s financial centre and what the future holds after Brexit
FT reporters
As far back as 1980 banks with offices in the UK had cross-border exposures far greater than banks in Germany and France, according to data from the Bank for International Settlements. Big international banks use London for large syndicate loans that ultimately go to foreign clients. The City also attracts assets to support trading and liquidity management at banks that range from the UK’s Barclays to big US investment banks such as Goldman Sachs. Markets such as Hong Kong, Germany and Ireland have seen exposures grow faster in the past 20 years but from a lower base. Brexit has prompted banks to shift assets to EU trading hubs.
/bit.ly/3oLRxAm

*****The follow up is how London imploded as a financial powerhouse after Brexit.~JJL

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Half a million Muslims forced to pick cotton as scale of Chinese slave labour exposed
Louise Watt – The Telegraph
Uighurs and other minorities to pick cotton by hand in the western region of Xinjiang, a key source of the world’s cotton, according to a report by a Washington-based think tank. Rights activists have estimated that Chinese authorities have detained more than one million Uighurs and other, mostly Muslim, minorities in detention camps in Xinjiang since 2017. Beijing denies that Uighurs’ rights are abused and says re-education centres provide vocational training to help people gain employment, and are necessary to curb extremism.
/yhoo.it/2IP2v8L

*****This needs more attention.~JJL

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Goldman Sachs Announces New Commitment to Support Small Business; $250 Million Philanthropic Commitment Establishes Next Generation of 10,000 Small Businesses Program; Commitment of over $1 Billion to Small Business Since Start of Pandemic
Goldman Sachs
Goldman Sachs today announced that it has funded the 10,000 Small Businesses program with an additional $250 million, which will ensure the program can reach another 10,000 entrepreneurs with the training and support they need to realize opportunities for growth.
/bit.ly/37l9TlH

*****This is good. You can’t get larger companies without helping smaller ones.~JJL

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Monday’s Top Three
Our top story on Monday was our MarketsWiki page on the late George Gero, giant of the gold industry and longtime Nymex member. Second was How Kelly Loeffler’s Firm Facilitated an Enron-Like Scandal, from Mother Jones. Third was the Financial Times’ US orders emergency action after huge cyber security breach.

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MarketsWiki Stats
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MarketsWiki Statistics

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CryptoMarketsWiki Website»
CryptoMarketsWiki, our archive of the cryptocurrency and blockchain world, is going strong and keeping pace as this area of finance grows and evolves.Recently Updated Pages

Recently updated pages include
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CryptoMarketsWiki Stats

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Lead Stories

High-Frequency Traders Push Closer to Light Speed With Cutting-Edge Cables; Firms aim to gain nanoseconds of advantage over rivals by using hollow-core fiber to convey data
Alexander Osipovich – WSJ
High-frequency traders are using an experimental type of cable to speed up their systems by billionths of a second, the latest move in a technological arms race to execute stock trades as quickly as possible. The cable, called hollow-core fiber, is a next-generation version of the fiber-optic cable used to deliver broadband internet to homes and businesses. Made of glass, such cables carry data encoded as beams of light. But instead of being solid, hollow-core fiber is empty inside, with dozens of parallel, air-filled channels narrower than a human hair.
/on.wsj.com/34eWl9H

The Biggest Covid Mistake Was Avoidable; False certainty convinces nobody and soon erodes trust.
Mervyn King – Bloomberg
No sensible person should envy politicians having to decide how best to combat Covid-19. Confronted with a new virus, errors and missteps were inevitable. But their biggest mistake was unnecessary — they pretended to know more than they did. From the start, under relentless pressure from the media, governments expressed unwarranted certainty about the merits of their policies. Then, when circumstances suggested a change of course, they explained the new direction with equal certainty. After a few such reversals, trust declines. And trust in political leadership is crucial — especially now, with people beginning to be asked to get vaccinated.
/bloom.bg/34eJAvs

New York Is on a Path Toward a Second Full Shutdown, Cuomo Says
Shelly Banjo and Keshia Clukey – Bloomberg
De Blasio urges people to consider working remotely amid surge; Schools are safe, will keep adding in-person class, mayor says
New York is headed toward a second full shutdown if Covid-19 cases and hospitalizations continue at their current pace, Governor Andrew Cuomo said. “If we do not change the trajectory, we could very well be headed to shut down” all non-essential businesses, Cuomo said Monday at a virus briefing.
/bloom.bg/2JYgSIJ

Suspected Russian Cyberattack Began With a Little-Known but Ubiquitous Software Company; SolarWinds provides the tools many companies use to manage their computer networks. That’s what made the hack so pernicious.
Robert McMillan – WSJ
The widespread and monthslong hack of the U.S. government and some of America’s biggest corporations was enabled by an unlikely source: a little-known Austin, Texas, software company called SolarWinds Corp. SWI -16.69% that until this week was a household name only to computer network administrators.
/on.wsj.com/3oWr9E6

Hedge-Fund Boss Ignites Swedish Race Debate With Complaint
Charles Daly – Bloomberg
Swedish social media lit up last month when a well known Black hedge-fund manager vented about discrimination, questioning the country’s prized egalitarian credentials. Sean George, 48, who grew up in the Caribbean before moving to Sweden at the age of 12, broke a two-year long silence on why he was forced to go solo with his fund in Stockholm in 2018. After decades of working overseas at firms like UBS Group AG, Bank of America Corp. and Deutsche Bank AG, he said he failed to get as much as an interview when he moved back to Stockholm.
/bloom.bg/34aW73a

U.K. Should Ban Christmas Household Mixing, Journals Say
Alex Morales and Kitty Donaldson – Bloomberg
Government plans 5-day relaxation of social distancing rules; Scientific advisers have warned holidays could spread virus
Two leading U.K. medical journals joined forces to demand Boris Johnson scrap his plan to let households mix over Christmas, in a plea to protect the National Health Service from being overwhelmed. In a rare joint editorial Tuesday, the British Medical Journal and the Health Service Journal said the government’s relaxation of social distancing rules for five days over the holiday period will increase coronavirus infections and risk putting further strain on hospitals.
/bloom.bg/2WfBeiO

US to decentralise SIP model and add depth of book data in major overhaul; The decision to overhaul market data feeds in the US could bring more competition to the space and decrease escalating data costs for investors.
Annabel Smith – The Trade
The US financial watchdog has adopted new rules that will overhaul key equity market data feeds in a bid to increase competition in the space after years of debate among market participants.
/bit.ly/3gSfeEu

SGX strengthens commitment to sustainability with S$20 million plan
SGX
Makes a bigger push in sustainability and takes the lead in driving improvements in the ecosystem through collaboration
Aims to provide the market with access to ESG information and solutions for investment decisions
Singapore Exchange (SGX) is investing S$20 million in a multi-pronged expansion of its sustainability capabilities and initiatives. Half of this amount will go towards new ESG-focused products, services and platforms, while the other half will be channelled into capacity building for the financial ecosystem, strengthening internal capabilities and increasing CSR commitments.
/bit.ly/2Kwowde

Ant Group’s chairman Eric Jing breaks silence after halt in largest global IPO with a corporate ‘check-up’ and rehabilitation plan; Ant has conducted a comprehensive self-review, akin to a ‘body check-up’; Ant Group’s Eric Jing promises to align business with national development priorities in the next five years and pledges greater transparency
Alison Tudor-Ackroyd – South China Morning Post
Ant Group has conducted a thorough review of its operations and will fully align itself with national-development priorities across the next five years, said executive chairman Eric Jing in his first public comments since Chinese regulators suspended the firm’s US$37 billion initial public offering.
/bit.ly/2IOG97k

Hedge fund boss banned and fined £100k over manipulated trades; Corrado Abbattista was found to have created a false impression of equity demand that he did not intend to execute.
Theo Andrew – CityWire.co.uk
The Financial Conduct Authority (FCA) has banned former hedge fund chief investment officer Corrado Abbattista and fined him £100,000 for market abuse. The regulator found Abbattista, formerly of Fenician Capital Management, guilty of creating a false impression of equity demand and supply which he did not intend to execute.
/bit.ly/34cVZ38

Death of World’s Wealthiest Banker Thrusts Heirs Into Spotlight
Felipe Marques – Bloomberg
Brazil’s Joseph Safra, worth $17.6 billion, died last week; Safra’s children already play central roles in the group
Joseph Safra became the world’s richest banker by transforming a Brazilian lender into a global multibillion-dollar empire.
/bloom.bg/3oUirWN

This Is a Tough Market for Contrarian Messiahs; The optimistic consensus has become overpowering.
John Authers – Bloomberg
Everyone wants to be a contrarian. But that’s logically impossible. Just watch the great scene in Monty Python’s Life of Brian when Brian, mistaken for the Messiah, tries to convince his followers to think for themselves. “You’re all completely different!” he cries. “Yes, we’re all completely different!” the crowd shouts as one. Then one voice says: “I’m not.”
/bloom.bg/3oUEfkW

JPMorgan Offers ‘You Only Live Once’ Trade to Bet on Ark ETFs
Yakob Peterseil – Bloomberg
Structured product issued to add leverage to top tech names; Strategies at critical juncture as value stock rotation looms
JPMorgan Chase & Co. is offering tech bulls a supercharged bet on some of the year’s top-performing exchange-traded funds. Like most Wall Street concoctions, this one comes with strings attached.
/bloom.bg/3adLnVB

CrossTower and Bosonic eliminate need for customers to custody assets with exchanges;Clients on the Bosonic Network can now trade on CrossTower while leaving their assets with their preferred custodian
CrossTower Inc.
CrossTower Inc., a digital asset exchange operator founded by capital markets veterans on a mission to mainstream digital asset investing and trading, today announced it has partnered with crypto-focused prime brokerage network Bosonic enabling all customers on the Bosonic Network to trade on CrossTower liquidity without the need to custody assets at the exchange. The partnership eliminates one of the main barriers to widespread institutional trading, breaking down the silos between customers on the Bosonic Network and CrossTower.
/bit.ly/34am3vT

Coronavirus

Sweden’s Second Wave Offers Hard Reality Check; Europeans are learning the hard way that there is no perfect lockdown “model.” Everyone’s made mistakes.
Lionel Laurent – Bloomberg
Every country has at one point dared to believe they’ve figured out how to beat SARS-CoV-2, until reality sets in. The U.K.’s misguided flirtation with a hands-off “herd immunity” strategy in March led quickly to a U-turn and tough restrictions. France and Spain promised they’d never repeat the draconian lockdowns they imposed early on — only to break their vow when test-and-trace systems failed to keep pace with summer vacation contagion. Israelis, who after a first lockdown were told to enjoy life and “have a beer,” are now facing a third one. Donald Trump recently claimed he’d ended the pandemic (he hadn’t).
/bloom.bg/2LEuklm

Covid Is Accelerating the Exodus From New York and California to Cheaper States; While taxes spur relocations by the rich, lower costs, bigger living spaces and better quality of life are driving other Americans during the pandemic.
Misyrlena Egkolfopoulou – Bloomberg
Elon Musk is doing it. Carl Icahn has already done it, so has Joe Rogan. And many who float in Manhattan’s upper echelons want to do it.
/bloom.bg/37o6D9v

Vaccines Herald Return to Offices, But Workers Don’t Want to Go
Alexandre Tanzi – Bloomberg
Remote work may add 2.4% to productivity, academic paper finds; Many Americans will continue to avoid subways and restaurants
As employers eagerly await the Covid-19 vaccines that promise to return staff to offices after months of working from home, new reports indicate getting them back won’t be easy. More than half of U.S. employees currently working from home say they’d like to keep their remote arrangements beyond the pandemic, according to a Pew Research Center survey released Wednesday.
/bloom.bg/3oWN2mm

Jump in London Covid cases raises fears over Christmas gatherings; Case numbers surge in capital and South East but cause of new outbreak is not fully known
Chris Giles and John Burn-Murdoch and Andrew Bounds – FT
England’s recent national lockdown failed to stem the second wave of coronavirus in the South East, unlike in other parts of the UK, giving ministers little choice but to place London in the most stringent tier of restrictions from Wednesday.
/on.ft.com/3akMwdQ

Will Relaxing Christmas Covid Rules Cause a Third Pandemic Wave? England’s decision to allow the mixing of three households over the festive period isn’t the smartest Covid move.
Therese Raphael – Bloomberg
One of the first rules of sound parenting is “be consistent.” If you mix your messages, you lose credibility and compliance goes out the window. Something similar applies to governments, which is one reason why Boris Johnson’s five-day Christmas reprieve for England is worrying. The other reason is even more straightforward: If you want to avoid a third wave of infections before a vaccine arrives, then telling people it’s okay to have a party isn’t such a great idea.
/bloom.bg/37kYKRV

Covid nudges US bank customers into digital era; Crisis has cut in-person transactions, helping banks to trim costs and branches
Laura Noonan – FT
America’s top banks have decided not to let a good crisis go to waste. During the pandemic, they have capitalised on their customers’ increased willingness to use digital financial services.
/on.ft.com/3oUlvC6

Moderna’s Covid-19 Vaccine Is Next in Line for Authorization; Data on shot’s effectiveness to be released Tuesday, followed by public hearing Thursday
Thomas M. Burton and Peter Loftus – WSJ
A second Covid-19 vaccine is likely to gain emergency-use authorization later this week, a process kicking off with the release of data Tuesday on the effectiveness of the shot developed by Moderna Inc. MRNA -1.19%
/on.wsj.com/3r1vojh

Covid-19 Vaccine’s Initial Scarcity Leads to Tough Choices for Hospitals; One hospital system is using occupation, health status and a lottery to determine which employees will be first to receive the Pfizer-BioNTech vaccine
Melanie Evans – WSJ
Emergency room doctor Stephanie Gonzalez spent this month eagerly waiting to hear if she would be one of the first to get the Covid-19 vaccine. Throughout the pandemic, she said, she has feared bringing the virus home to an adult daughter with autism who needs her mother’s help to dress, shower and eat.
/on.wsj.com/3qYrQhT

With First Dibs on Vaccines, Rich Countries Have ‘Cleared the Shelves’; The U.S., Britain, Canada and others are hedging their bets, reserving doses that far outnumber their populations, as many poorer nations struggle to secure enough.
Megan Twohey, Keith Collins and Katie Thomas – NY Times
As a growing number of coronavirus vaccines advance through clinical trials, wealthy countries are fueling an extraordinary gap in access around the world, laying claim to more than half the doses that could come on the market by the end of next year.
/nyti.ms/34dIErx

A Shot of Hope’: What the Vaccine Is Like for Frontline Doctors and Nurses; Even as medical workers lined up for America’s first shots, many of them recalled nightmarish moments from the pandemic.
Jack Healy, Lucy Tompkins and Audra D. S. Burch – NY Times
As Dr. Rishi Seth rolled up his left sleeve on Monday to receive one of the United States’ first Covid-19 vaccines, he thought of his patients back in the Special Care Unit.
/nyti.ms/2K5sbi9

Ukraine Oligarch’s Troubled US Steel Plant Has Been Quietly Mining Bitcoin: Report
Anna Baydakova – Coindesk
A supposedly shuttered U.S. steel plant owned by Ukrainian billionaire Ihor Kolomoisky is said to have been mining bitcoin. Kolomoyskyy, one of the most influential people in Ukraine with net worth of $1.1 billion, is the former owner of PrivatBank, a major privately owned bank in the country. He was also governor of the Dnipropetrovsk region until 2015.
/yhoo.it/2Kpf4rS

Lloyd’s of London, Parsyl to insure COVID-19 vaccine distribution in emerging markets
Reuters Staff
Lloyd’s of London and insurtech firm Parsyl have launched a development finance-backed programme to insure the distribution of COVID-19 vaccines in emerging markets as a global vaccination programme to halt the deadly virus gathers pace.
/reut.rs/34bAxLN

Exchanges, OTC and Clearing

Barclays launches BARX single dealer platform with Nasdaq; The single-dealer platform developed in tandem with Nasdaq will offer institutional clients access to principal liquidity at Barclays in US-listed single names and ETFs.
Annabel Smith – The Trade
UK investment bank Barclays has launched a new single dealer platform in partnership with US exchange Nasdaq to give institutional clients access to its principal liquidity for US stocks.
/bit.ly/3gOudPs

Marex Spectron expands equity derivatives clearing with Cboe and OCC; The addition of Cboe Futures Exchange and OCC to its execution and clearing membership means Marex Spectron now covers 37 major global exchanges.
Annabel Smith – The Trade
Commodities broker Marex Spectron has become a member of Cboe Futures Exchange and clearing member of the Options Clearing Corporation (OCC) as part of plans to expand its equity derivatives clearing business.
/bit.ly/2WdUEVz

Nordic Unmanned lists on Euronext Growth
Euronext
The drone company Nordic Unmanned has today been admitted to trading on Euronext Growth (ticker code: NUMND). Nordic Unmanned delivers drone solutions for collecting and presenting data. Recently, the company raised NOK 99 million through issuing new shares.
/bit.ly/3mlvm2i

Qontigo & Eurex discuss the impact of ICB on indices and related derivatives
Eurex
Continuing a conversation Qontigo’s Giulio Castelli and Eurex’s Zubin Ramdarshan had in a recent PULSE ONLINE article, this time it’s Stephan Flaegel from Qontigo and Randolf Roth from Eurex talking about the new Industry Classification Benchmark (ICB) structure and its impact on indices and related derivatives.
/bit.ly/3nrQkOw

ICE Benchmark Administration launches GBP SONIA ICE Swap Rate as a benchmark for use by licensees
Intercontinental Exchange, Inc.
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of mortgage technology, data and listings services, announces that ICE Benchmark Administration Limited (IBA) has launched its GBP SONIA ICE Swap Rate as a benchmark for use by licensees.
/bit.ly/3mpvWfo

Intercontinental Exchange Launches 10 New MSCI® Index Futures; Four New Contracts Help Manage Climate Risk and Are Only Available on ICE Futures U.S.;The Additional Six Contracts Provide Specific Regional Exposure
Intercontinental Exchange, Inc.
Intercontinental Exchange, Inc. (NYSE: ICE), a leading operator of global exchanges and clearing houses and provider of mortgage technology, data and listings services, today announced the launch of futures on an additional 10 MSCI Indices.
/bit.ly/2LBnPzJ

Revised: Product Modification Summary: Amendments to the Strike Price and Listing Schedule for Certain Options on Great British Pound/U.S. Dollar (GBP/USD) Futures Contracts – Effective February 01, 2021
CME Group
Amendments to the Strike Price and Listing Schedule for Certain Options on Great British Pound/U.S. Dollar (GBP/USD) Futures Contracts.
/bit.ly/2KsbddK

Reduction of Minimum Price Increment of the Quarterly IMM and MPC SONIA Futures Contracts
CME Group
Effective Sunday, January 24, 2021, for trade date Monday, January 25, 2021, Chicago Mercantile Exchange Inc. (“CME” or “Exchange”) shall reduce the minimum price increments (“MPI”) of the Quarterly IMM Futures and MPC SONIA Futures contracts (the “Contracts”) for trades executed on the CME Globex electronic trading platform (“CME Globex”) and for transactions submitted for clearing via CME ClearPort
as noted in the table below.
/bit.ly/3gOyx1i

Performance Bond Requirements: Agriculture, Energy, Interest Rate and Metal Margins – Effective December 15, 2020
CME Group
As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago Mercantile Exchange Inc., Clearing House Risk Management staff approved the performance bond requirements for the following products listed in the advisory at the link below.
/bit.ly/37keJ2y

Performance Bond Requirements: Energy – Effective December 15, 2020
CME Group
As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago Mercantile Exchange Inc., Clearing House Risk Management staff approved the performance bond requirements for the following products listed in the advisory at the link below.
/bit.ly/2Wjk6Jk

Product Modification Summary: Delisting of Certain Previously-Listed Contract Months and Subsequent Delisting of the USD Malaysian Crude Palm Oil Calendar Swap (Cleared Only) Contract – Effective December 14, 2020
CME Group
Delisting of Certain Previously-Listed Contract Months and Subsequent Delisting of the USD Malaysian Crude Palm Oil Calendar Swap (Cleared Only) Contract
/bit.ly/3nmtS9k

Notice of Disciplinary Action
CME Group
MEMBER: DANIEL SHAK
RULE VIOLATION: EXCHANGE RULE 575.A. DISRUPTIVE PRACTICES PROHIBITED
No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.
PENALTY: In accordance with the settlement offer, the BCC Panel ordered Shak to pay a monetary fine in the amount of $65,000 and to serve a 9 business day trading suspension from access to any trading floor owned or controlled by CME Group and from direct and indirect access to any designated contract market, derivatives clearing organization or swap execution facility owned or controlled by CME Group. The suspension shall run from December 14, 2020 through, and including, December 24, 2020.
/bit.ly/37pzqdP

Notice of Disciplinary Action
CME Group
NON-MEMBER: Marex Financial
NYMEX RULE VIOLATIONS: Rule 526. Block Trades (In Part)
The following shall govern block trades: F. Unless otherwise agreed to by the principal counterparties to the block trade, the seller, or, in the case of a brokered transaction, the broker handling the block trade, must ensure that each block trade is reported to the Exchange within the time period and in the manner specified by the Exchange. The report must include the contract, contract month, price, quantity of the transaction, the respective clearing members, the time of execution, and, for options, strike price, put or call and expiration month. The Exchange shall promptly publish such information separately from the reports of transactions in the regular market.
PENALTY: In accordance with the settlement offer, the Panel ordered Marex pay a fine to the Exchange in the amount of $80,000.
/bit.ly/3gNlkpo

Notice of Disciplinary Action
CME Group
NON-MEMBER: Levmet Holdings Ltd.
EXCHANGE RULE: RULE 534. WASH TRADES PROHIBITED
No person shall place or accept buy and sell orders in the same product and expiration month, and, for a put or call option, the same strike price, where the person knows or reasonably should know that the purpose of the orders is to avoid taking a bona fide market position exposed to market risk (transactions commonly known or referred to as wash sales). Buy and sell orders for different accounts with common beneficial ownership that are entered with the intent to negate market risk or price competition shall also be deemed to violate the prohibition on wash trades. Additionally, no person shall knowingly execute or accommodate the execution of such orders by direct or indirect means.
RULE 432. GENERAL OFFENSES (in part) It shall be an offense W. for any party to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchange.
PENALTY: In accordance with the settlement offer, the Panel ordered Levmet to pay a fine to the Exchange in the amount of $40,000.
/bit.ly/3nkM1V6

Notice of Disciplinary Action
CME Group
NON-MEMBER: TULLETT PREBON (EUROPE) LTD.
NYMEX RULES: RULE 432. GENERAL OFFENSES (IN PART)
It shall be an offense: W. for any party to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchange.
RULE 526. BLOCK TRADES
The Exchange shall designate the products in which block trades shall be permitted and determine the minimum quantity thresholds for such transactions. The following shall govern block trades:
RULE 536.E. NEGOTIATED TRADES (IN PART)
MARKET REGULATION ADVISORY NOTICE RA1814-5, SECTION 11
/bit.ly/2IWtNu8

Notice of Disciplinary Action
CME Group
NON-MEMBER: TULLETT PREBON AMERICAS CORP.
NYMEX RULE: RULE 526. BLOCK TRADES
The Exchange shall designate the products in which block trades shall be permitted and determine the minimum quantity thresholds for such transactions. The following shall govern block trades:
F. Unless otherwise agreed to by the principal counterparties to the block trade, the seller, or, in the case of a brokered transaction, the broker handling the block trade, must ensure that each block trade is reported to the Exchange within the time period and in the manner specified by the Exchange. The report must include the contract, contract month, price, quantity of the transaction, the respective clearing members, the time of execution, and, for options, strike price, put or call and expiration month. The Exchange shall promptly publish such information separately from the reports of transactions in the regular market.
PENALTY: In accordance with the settlement offer, the Panel ordered TP Americas to pay a fine to the Exchange in the amount of $50,000.
/bit.ly/2Kscrpm

Notice of Disciplinary Action
CME Group
NON-MEMBER: TULLET PREBON AMERICAS CORP. (f/k/a SCS Commodities Corp.)
NYMEX RULES: RULE 432. GENERAL OFFENSES (IN PART)
It shall be an offense: W. for any party to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchange.
RULE 526. BLOCK TRADES
The Exchange shall designate the products in which block trades shall be permitted and determine the minimum quantity thresholds for such transactions. The following shall govern block trades:
PENALTY: In accordance with the settlement offer, the Panel ordered TP Americas to pay a fine to the Exchange in the amount of $60,000.
/bit.ly/2IWu408

Notice of Disciplinary Action
CME Group
NON-MEMBER: ICAP CORPORATES LLC
NYMEX RULES: RULE 432. GENERAL OFFENSES (IN PART)
It shall be an offense: W. for any party to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchange.
RULE 526. BLOCK TRADES
The Exchange shall designate the products in which block trades shall be permitted and determine the minimum quantity thresholds for such transactions. The following shall govern block trades:
PENALTY: In accordance with the settlement offer, the Panel ordered ICAP Corp. to pay a fine to the Exchange in the amount of $100,000.
/bit.ly/3nodkxD

Fintech

Vela adds US equities and equity options trading to platform with ED&F Man; Execution services for US equities and equity options though ED&F Man Capital Markets are now available via the DMA platform at Vela.
Annabel Smith – The Trade
Trading technology provider Vela has added brokerage ED&F Man Capital Markets to its direct market access (DMA) platform to offer clients trading in US equities and equity options.
/bit.ly/2KpdI0g

*****You can also read the press release for this story here.~MR

The TRADE 2021 Algorithmic Trading Survey launches; Buy-side respondents have until 26 February to rate algo providers, with high performers due to be recognised as part of Leaders in Trading in late 2021.
Editors – The Trade
Institutional investors and asset managers are invited to rate the features and capabilities of their algo providers in The TRADE’s 2021 Algorithmic Trading Survey.
/bit.ly/3mrXqBi

WEF, Mining Giants Develop Blockchain Platform for Tracking Carbon Emissions
Sebastian Sinclair – Coindesk
The World Economic Forum (WEF) and seven major mining companies have completed the initial stage of a blockchain platform that tracks carbon emissions along the mining value chain. In a press statement on Monday, the Mining and Metals Blockchain Initiative (MMBI) from the WEF said its proof-of-concept carbon tracing platform COT was in development for over a year. The finalized platform will track embedded greenhouse gas emissions from the mine to the final product using distributed ledger technology.
bit.ly/3qXRm6T

Cryptocurrencies

Mt Gox Creditors’ Wait Nearly Over as Trustee Announces Draft Rehabilitation Plan
Tanzeel Akhtar – Coindesk
Mt. Gox’s trustee Nobuaki Kobayashi has at last filed a draft plan for the rehabilitation of creditors including former users. Posted on the Mt. Gox website Tuesday, the trustee’s announcement states: “The Tokyo District Court and an examiner will review the draft rehabilitation plan and determine whether to proceed with the rehabilitation proceedings relevant to the draft rehabilitation plan.” While there are no details provided on the plan, the announcement marks the beginning of the end for users who have been waiting for refunds since 2014 when the exchange collapsed. As reported by CoinDesk, the submission deadline for the rehabilitation had previously been pushed back a number of times after opposition from some creditors. In 2014, Mt. Gox declared bankruptcy after hackers stole 850,000 bitcoins from its servers over a period of time.
bit.ly/2KvS8qM

Buterin Warns Followers Not to Take Out Personal Loans to Buy Crypto
Tanzeel Akhtar – Coindesk
Ethereum founder Vitalik Buterin took to Twitter to warn his followers not to take personal loans to purchase cryptocurrencies. On Monday, Buterin shared a post on Twitter warning followers not to take out personal loans to purchase cryptocurrencies in hopes they will be able to pay off the loan including interest as the cryptocurrency gradually appreciates in value over the years. “Please don’t do things like this. I would NEVER recommend anyone take out a personal loan to buy ETH or other ethereum assets,” warned Buterin.
bit.ly/3adCjjx

SatoshiPay to Become First User of German Bank’s Euro Stablecoin
Tanzeel Akhtar – Coindesk
Cryptocurrency payments provider SatoshiPay has inked a deal with German bank Bankhaus von der Heydt to become the first user of its recently revealed euro-backed stablecoin (EURB). Announced Tuesday by SatoshiPay investor Blue Star Capital, the payments firm plans to integrate the regulatory complaint EURB into its cross border money transfer service called DTransfer. Bankhaus von der Heydt, an institution established in 1754, partnered with Bitbond to launch its euro-backed stablecoin on Stellar last week.
bit.ly/385PrEH

Kraken clients have deposited more than 160,000 ETH into its Eth2 staking service
MK Manoylov – The Block
More than 163,000 ETH has been staked by customers of crypto exchange Kraken and its staking service for Ethereum 2.0, also known as Eth2. The 163,712 ETH figure, as published by Eth2 data provider Beaconcha.in, represents a notable increase from the 100,000 stake in Eth2 the firm’s clients had on December 8. 163,712 ETH is worth roughly $95 million at current prices.
bit.ly/388uoRJ

OCC chief economist pens working paper defending the issuance of charters to fintech, stablecoin firms
Michael McSweeney – The Block
A working paper by the Office of the Comptroller of the Currency’s (OCC) top economist explores the implications of chartering stablecoin banks — and why doing so may provide some regulatory benefits. The paper by Charles Calomiris —entitled “Chartering the FinTech Future” — covers both so-called stable value coin banks as well as the broader fintech landscape with respect to what he terms shadow banks. In a broader sense, his paper aims to capture the technological march occurring in the financial technology sector and how that will shape the banking ecosystem over time.
bit.ly/3oRvE2A

Fidelity-backed crypto trading platform OSL secures license in Hong Kong
Helen Partz – Cointelegraph
OSL, a major digital asset platform in Asia and a unit of Fidelity-backed BC group, has been officially licensed by the Securities and Futures Commission of Hong Kong. According to a Dec. 15 announcement, the new license allows OSL Digital Securities to operate regulated brokerage and automated trading services for digital assets. The news comes shortly after the SFC agreed in principle to issue OSL a license in August 2020. According to the announcement, OSL has successfully undergone the SFC’s strict vetting requirements.
bit.ly/2JY7W69

Politics

Biden Wins Electoral College to Cement Victory and Rebuff Trump
Mark Niquette – Bloomberg
Democrat tops 270 votes needed from electors in U.S. states; Electoral College members gathered in each state to cast votes
Joe Biden officially clinched the presidency after the Electoral College confirmed his victory Monday, capping a tumultuous period sparked by Donald Trump’s refusal to acknowledge he lost with the help of Republicans willing to support his unsubstantiated claims. Some Senate Republicans who had refused to recognize Biden’s overwhelming victory quickly started acknowledging that Trump lost and Biden will be inaugurated as the 46th president on Jan. 20.
/bloom.bg/2WcJnEQ

Senior Republicans accept Biden victory after Electoral College vote; Senators break with Donald Trump to acknowledge Democrat will be next president
Lauren Fedor – FT
Several senior Republicans acknowledged Joe Biden would be the next US president in a decisive break with Donald Trump after the Democrat secured the majority of Electoral College votes required to win the White House.
/on.ft.com/3oUj5U2

Inside the Right-Wing Media Bubble, Where the Myth of a Trump Win Lives On; The Electoral College has affirmed Biden’s victory. That doesn’t mean that Trump-friendly news outlets have accepted it.
Jeremy W. Peters – NY Times
President Trump’s media criticism is usually binary — there are “good stories,” favorable to him, and then the other category. Most news coverage on Monday fell into that other category. One by one, presidential electors in all 50 states and the District of Columbia formally recognized Joseph R. Biden Jr. as the president-elect, the latest and most significant rejection so far of Mr. Trump’s desperate attempts to undo the will of the voters.
/nyti.ms/3gN69fS

Europe Will Regret Selling Its Values Too Cheaply; The European Union’s failure to discipline Hungary and Poland could prove more damaging to its stature internationally than Brexit.
Mihir Sharma – Bloomberg
We non-Europeans tend to get lectured a lot by folks from the European Union about “European values.” In their defense, we always believed they were sincere. Surely a continent so ruined by devastating wars, which had somehow managed to extricate a form of concord from the wreckage, understood that a union was about more than budgets, transfers and regulations: It meant creating some sort of solidarity across the divides of ethnicity and nationality, and defending — no, not European, but universal — rights and principles.
/bloom.bg/384xTca

Wall Street donates millions to back Republicans in Georgia Senate race; Billionaire Republicans on Wall Street have donated millions to protect David Perdue and Kelly Loeffler’s Senate seats
Peter Stone – The Guardian
Billionaire Republicans on Wall Street have been opening their wallets to try and protect David Perdue and Kelly Loeffler’s Senate seats in January 5’s high-stakes runoff in Georgia against two Democrat challengers. Two super Pacs are planning to spend about $80m on ads and other efforts backing the Republicans.
/bit.ly/34ah5PN

Regulation

ASIC releases review of school banking programs
ASIC
Report 676, released today, sets out the key findings of a review of school banking programs. The review was undertaken to determine the benefits and risks of school banking programs. ASIC sought to identify why banks, schools and students engage with these programs, understand whether banks assess the impact of their programs on students’ savings habits, and analyse the long-term impact on children of marketing through these programs.
/bit.ly/3r4J90X

Federal Court Orders Interdealer Broker to Pay $7 Million for Deceptive Trading Practices in the FX Options Markets
Former CEO and Desk Head Ordered to Pay $500,000 Each for Supervision Failures
CFTC
The Commodity Futures Trading Commission today announced the U.S. District Court for the Southern District of New York entered a consent order against defendants TFS-ICAP LLC and TFS-ICAP Ltd., interdealer brokers located in New York and London, requiring them to pay a $7 million civil monetary penalty for representing to clients bids and offers that had not been made, and for communicating to clients trades that had not occurred. In the order, TFS-ICAP admits that its employees engaged in the misconduct, known as “flying” prices and “printing” trades, that violated the Commodity Exchange Act (CEA), as charged.
/bit.ly/38aph3Q

EU warns that it may break up Big Tech companies; Repeat offences under new rules will trigger action to force divestments, Brussels will warn
Javier Espinoza – FT
The EU will threaten on Tuesday to break up Big Tech companies if they repeatedly engage in anti-competitive behaviour. The warning comes as Brussels publishes its drafts of two major new pieces of tech regulation.
/on.ft.com/389sq3A

ASIC highlights focus areas for 31 December 2020 financial reports under COVID-19 conditions
ASIC
ASIC has highlighted key focus areas for financial reporting by companies for years ending 31 December 2020. As the impact of COVID-19 continues, the areas identified remain similar to those at 30 June 2020 and are complemented by guidance provided in frequently asked questions on the ASIC website.
/bit.ly/3nrR8mw

ASIC and APRA letter to superannuation trustees on Member Outcomes obligations and Product design and distribution obligations
ASIC
ASIC and APRA have issued a joint letter to RSE licensees in relation to the Member Outcomes (MO) obligations and the Product design and distribution obligations (DDOs), to assist RSE licensees to better understand the way in which the MO obligations and the DDOs interact.
/bit.ly/2Kphc2Q

ASIC releases review of school banking programs
ASIC
Report 676, released today, sets out the key findings of a review of school banking programs. The review was undertaken to determine the benefits and risks of school banking programs. ASIC sought to identify why banks, schools and students engage with these programs, understand whether banks assess the impact of their programs on students’ savings habits, and analyse the long-term impact on children of marketing through these programs.
/bit.ly/3r4J90X

ASIC cracks down on unlicensed advice
ASIC
ASIC continues to crack down on unlicensed operators following reports about individuals and corporations providing financial product advice without an Australian financial services (AFS) licence.
/bit.ly/3nmmniI

Steven Maijoor speaks at the third roundtable on euro risk-free rates
SGX
The Chair of the European Securities and Markets Authority (ESMA), Steven Maijoor, today delivered a speech at the third roundtable on euro risk-free rates.
/bit.ly/2KptJDp

ESMA is seeking experts in financial innovation for its consultative group
ESMA
The European Securities and Markets Authority (ESMA), the EU securities markets regulator, is looking for new candidates for the Consultative Working Group (CWG) of the Financial Innovation Standing Committee (FISC).
/bit.ly/3gRdtXO

Trading Options: Understanding Assignment
FINRA
The options market can seem to have a language of its own. To the average investor, there are likely a number of unfamiliar terms, but for an individual with a short options position—someone who has sold call or put options—there is perhaps no term more important than “assignment”—the fulfilling of the requirements of an options contract.
/bit.ly/3nkwtk0

SEC Awards More Than $300,000 to Whistleblower with Audit Responsibilities
SEC
The Securities and Exchange Commission today announced an award of more than $300,000 to a whistleblower whose high-quality information and continuing assistance significantly contributed to a successful enforcement action.
/bit.ly/3gQCnH3

Statement of Dissent from the Commission’s Order Approving the Financial Industry Regulatory Authority’s Proposed Rule Change, as Modified by Amendment No. 1, to Address Brokers with a Significant History of Misconduct
Commissioner Hester Peirce – SEC
Last week, the Commission approved a Financial Industry Regulatory Authority (FINRA) rule filing that is designed to address risks to investors presented by member firms and brokers that have a history of misconduct. FINRA notes research suggesting that some firms have a practice of hiring brokers who have a history of misconduct and that these brokers show a tendency to engage in higher levels of misconduct.[1] FINRA also cites studies that suggest that a history of misconduct or other regulatory events may predict that a firm or broker is likely to engage in similar conduct in the future.[2] The rule filing that the Commission approved contains several provisions that will provide FINRA with additional tools to mitigate these risks.
/bit.ly/3nz0c9f

FCA fines and prohibits hedge fund Chief Investment Officer for market abuse
UK FCA
The FCA has fined Corrado Abbattista, formerly a portfolio manager, partner and Chief Investment Officer at Fenician Capital Management LLP, £100,000 for market abuse and prohibited him from performing any functions in relation to regulated activity.
/bit.ly/3nmwe8a

FCA fines Barclays £26 million over treatment of customers in financial difficulty
UK FCA
The Financial Conduct Authority (FCA) has fined Barclays Bank UK PLC, Barclays Bank PLC and Clydesdale Financial Services Limited (Barclays) £26 million for failures in relation to their treatment of consumer credit customers who fell into arrears or experienced financial difficulties.
/bit.ly/2Wh34LN

Investing and Trading

De Beers Raises Diamond Prices for First Time Since Pandemic
Thomas Biesheuvel – Bloomberg
De Beers raised prices by 2%-3% at last sale: people familiar; Strength of rebound in consumer demand is key to recovery
De Beers raised diamond prices for the first time since the outbreak of global pandemic, signaling growing confidence in a rebound for the struggling industry.
/bloom.bg/3mkndv3

The risks that investors should prepare for in 2021; After a liquidity-driven rally on markets, central bank largesse might not be sustainable
Mohamed El-Erian – FT
What, if anything, will happen to the great disconnect between Wall Street and Main Street? This is a key question for investors positioning their portfolios for 2021. It is also an important question for the global economy and policymakers.
/on.ft.com/3oLRW5Q

Oil consumption will be ‘lower for longer than expected’, warns IEA; Body cautions against premature ‘euphoria’ that vaccines will swiftly boost air travel
Anjli Raval – FT
Oil demand will rebound more slowly than initially anticipated in 2021 as the aviation sector takes longer to recover from the coronavirus hit, the International Energy Agency said on Tuesday.
/on.ft.com/3akNczU

Environmental, Social and Corporate Governance

Targeting Barclays, Climate Activists Fight Their Way to Draw; ShareAction pushes Europe’s leading banker to corporate emitters to pledge initial steps toward net-zero financing.
Alastair Marsh – Bloomberg
Few people understand the seeming futility of getting big banks to do the right thing better than Catherine Howarth. For three years, Barclays Plc, Europe’s biggest financier of corporate carbon emitters, ignored her entreaties. Then her non-profit, ShareAction, spent the best part of another year pushing a shareholder resolution — the first of its kind in Europe — for the lender to phase out funding for fossil-fuel companies.
/bloom.bg/34dAZJN

Why no one is impressed with Exxon’s emissions pledge; The supermajor did not get the reaction it hoped for after pressure from activist investors
Myles McCormick, Justin Jacobs and Gregory Meyer – FT
ExxonMobil yesterday joined the growing ranks of US oil producers that have vowed to tackle emissions. But the announcement elicited little more than a shrug from observers. That is the subject of our first item.
/on.ft.com/34eRPI8

Finance chiefs face pressure to get to grips with sustainability; CFOs must weigh environmental impact alongside shareholder value when determining business priorities
Sarah Murray – FT
If presented with bird’s-eye views of oceans, forests or deserts, many chief financial officers might struggle to connect them to financial planning or cash flow management. But with pressure for companies to demonstrate their sustainability credentials, satellite imaging and other technologies are becoming increasingly relevant to the work of the CFO.
/on.ft.com/34cz1ck

ExxonMobil promises emissions cuts after investor pressure; US oil major aims to reduce per barrel emissions by up to a fifth in next five years
Myles McCormick and Justin Jacobs – FT
ExxonMobil has promised to cut emissions for every barrel of oil it produces by up to a fifth over the next five years, after investor pressure for action on climate change.
/on.ft.com/3qSgfRk

Institutions

Credit Suisse Uncertain Outlook Clouds Investment Bank Gains
Patrick Winters and Marion Halftermeyer – Bloomberg
Reaching mid-term profit target next year hinges on provisions; Writedowns, legal provisions to weigh on earnings this quarter
Credit Suisse Group AG warned that reaching its profit target next year will hinge on the impact of the pandemic, clouding gains in its investment banking unit in the fourth quarter.
/bloom.bg/2K75ZnF

Best European Stock Fund Managers Bet on Tech Supremacy in 2021
Namitha Jagadeesh and Ksenia Galouchko – Bloomberg
Value rotation poses risk to this year’s outperforming funds; Shift to digital companies fueled 2020’s winning stocks
Some of this year’s best-performing European equity fund managers are betting their investments in technology stocks will reap further returns in 2021 even as optimism over coronavirus vaccines fuels a rally in value shares, threatening the funds’ performance.
/bloom.bg/3aaRVnN

SocGen Can’t Fire Banker Who Went AWOL After 3-Year Sabbatical; Versailles judges call his dismissal unfair and grant him compensation of $112,300
Gaspard Sebag – Bloomberg
When a Societe Generale SA banker failed to show up after his three-year sabbatical ended, the bank fired him. French judges say that was wrong and awarded him about 92,500 euros ($112,300), in a ruling that sheds light on the tensions between employers and staff legally entitled to return from career breaks with their old status intact.
/bloom.bg/2JWaUIj

Barclays fined £26m over treatment of borrowers; Bank did not have “appropriate conversations” with customers who had fallen into arrears
Matthew Vincent – FT
The UK financial regulator has fined Barclays £26m over its treatment of borrowers who fell into arrears or experienced financial difficulties over a four-year period.
/on.ft.com/3oUiDoO

Credit Suisse to focus on boosting wealth management profits; Swiss lender sets out priorities under chief executive Thomas Gottstein
Owen Walker and Oliver Ralph – FT
management by at least a quarter by 2023 and expand its investment bank as chief executive Thomas Gottstein laid out his priorities.
/on.ft.com/34hcsDv

Hedge funds exploit technology to reduce cost and waste; Growth in data volumes has pushed finance chiefs to move towards a single trading system
Laurence Fletcher – FT
Hedge funds have sucked in tens of billions of dollars in investments in recent years, assisted increasingly by technology. The same tech is also benefiting those people who make the financial decisions at these organisations.
/on.ft.com/3r0MT3t

Capital Group joins Plato Partnership as founding buy-side member; Not-for-profit Plato Partnership has expanded its list of buy-side founding members with Capital Group.
Annabel Smith – The Trade
Investment management heavyweight Capital Group has joined the not-for-profit trading consortium Plato Partnership as a buy-side founding member.
/bit.ly/2IRnVlR

Citi plots portfolio trading expansion with senior global appointments; As portfolio trading has grown rapidly in flow credit markets, Citi has tasked Derek Hafer with expanding the bank’s franchise across spread and flow products.
Hayley McDowell – The Trade
US investment bank has made two senior appointments across its bond trading business under plans to expand its portfolio trading franchise due to growth in the protocol in credit markets.
/bit.ly/2KvWVZl

Regions

China Offers $145 Billion to Banks as Cash Supply Tightens
Bloomberg News
Money market rates decline after PBOC’s MLF injection; Data suggest growth recovery gathered pace in November
28.81CNY-0.03-0.10%
China injected cash into the financial system by offering medium-term loans, in the government’s latest effort to ensure the country’s banks have sufficient liquidity.
/bloom.bg/2JZlBd8

China suspends top credit rating agency as defaults hit market; Regulator says Golden Credit failed to justify some of its ratings and upgrades
Hudson Lockett and Thomas Hale and Sun Yu – FT
China has suspended one of its top credit rating agencies after a former executive was accused of taking “massive” bribes, as a growing pile of defaults rattle the country’s $4tn corporate debt market.
/on.ft.com/34epUYC

Chinese fashion group that controls Lycra maker defaults on $153m bond; Missed payment by Shandong Ruyi comes as conditions worsen in China’s $4tn domestic credit market
Hudson Lockett – FT
The Chinese clothing maker?that controls brands including The Lycra Company and Gieves & Hawkes revealed on Monday that it had failed to pay back investors on a $153m bond, the latest in a string of defaults in the country.
/on.ft.com/3abyhYO

Retailers and food groups demand soya traders halt Brazil deforestation; Tesco offers £10m to stop expansion in Cerrado as companies threaten sanctions
Emiko Terazono and Patricia Nilsson – FT
International retailers, food groups and investors including Tesco, McDonald’s, Unilever and Lidl have called on soyabean traders to divest from the commodity linked to deforestation in Brazil’s Cerrado region.
/on.ft.com/2K5h5cY

1MDB Scandal Casts Pall Over Indonesia Wealth Fund Ambitions
By Claire Jiao and Grace Sihombing – Bloomberg
Fund aims to raise $16 billion, start operations next year; Previous corruption cases may taint bid to lure investors
Indonesia will need to step out of the shadows of neighboring Malaysia’s 1MDB scandal to convince investors that its new wealth fund won’t fall prey to corruption.
/bloom.bg/3oXbELM

Brexit

Barnier’s Narrow Path: How a Brexit Deal Could Be Done This Week
Ben Sills – Bloomberg
Brexit negotiators got back to work in Brussels this week as they push to complete a trade accord before the U.K. leaves the European Union’s single market on Dec. 31. Following a weekend of intense diplomatic activity, Michel Barnier, who leads the EU team, told ambassadors from the bloc that he can see a pathway to a deal — if the two sides can resolve what he called their significant differences.
/bloom.bg/2JWa6Dh

Britain will do a Brexit deal on Europe’s terms; A power asymmetry puts the UK at a disadvantage in the negotiations
Gideon Rachman – FT
And so we stumble onwards. The extension of trade talks between the EU and the UK should not be a surprise. For all Boris Johnson’s bravado about “prospering mightily”, the British prime minister knows that a “no deal” Brexit would be disastrous for the country. The EU would also suffer, but not nearly as much. So there will probably be a deal struck before the end of the year; if not, soon afterwards.
/on.ft.com/34hcKu5

Airlines fear fines for breaking EU data rules without Brexit deal
Philip Georgiadis – FT
Airlines are warning they face large fines for breaking strict European rules on the exchange of passenger data for flights into the UK from next month should trade talks with the EU collapse. Their concerns centre on the omission of how passenger data should be handled in EU contingency plans to keep planes flying in the event of a no-deal Brexit, according to two people familiar with the matter. Airlines are now in talks with the UK government on personal data transfers when the UK’s EU transition period runs out at the end of December, said these people.
on.ft.com/34escXL

Brexit will hit UK economy like a ‘slow puncture’
Lisa O’Carroll – The Guardian
Brexit will hit the British economy like a “slow puncture”, a leading industrialist has warned, with disruption to business to last at least six months even if a trade deal is reached. Juergen Maier, the former chief executive of German electronics giant Siemens, warned that businesses were starting to shift parts of their operations to other countries in the EU while at the same time decrying the “nationalist” headlines over the weekend claiming Angela Merkel wanted the UK to “walk on broken glass” to secure a Brexit deal.
bit.ly/3gP6ZJ1

The Guardian view on Brexit jingoism: crudely ineffective
The Guardian
In a Guardian interview last year with his fellow novelist John Banville, the late John le Carré expressed dismay at the coarsening nature of political debate in Britain, particularly on the subject of Brexit. “Mob orators of the sort we have,” said Le Carré, “the Boris Johnson sort, do not speak reason. When you get into that category, your task is to fire up the people with nostalgia, with anger.”
bit.ly/3oUJpO8

Miscellaneous

How newsletters are making big bucks from your inbox; ‘How did something compiled by churches, clubs and far-flung families become a hot, multimillion-dollar industry?’
Elaine Moore – FT
Every day, about 10 lengthy email newsletters drop into my inbox. First, there are the compilations from media organisations — neat round-ups of articles on particular topics. Then the chatty, tech- and finance-focused newsletters from the likes of the Lex column that I write for, the FT’s Due Diligence M&A team or Matt Levine at Bloomberg. Recently, I entered true fan territory by signing up to a paid-for newsletter from New York-based writer Cat Marnell.
/on.ft.com/388hEKT

Should I quit Wall Street to pursue my passion project?
Claer Barrett – FT
The pandemic has forced everyone to reexamine their finances, whether it’s dealing with a pay cut, how to best use cash from staying home, managing the ups and downs of investment markets or using this time to make a career change. Whatever the question, Financial Times consumer editor Claer Barrett knows where to find the right tips for your money. Every week, Claer talks to a listener about their money queries and consults her rolodex of financial advisors, planners and writers for no-nonsense and informed guidance that will help all of us feel more confident making our money work. Produced by Josh de la Mare and Persis Love. The sound engineer is Breen Turner and the editor is Aimee Keane. Music by Metaphor Music.
/on.ft.com/3qYp

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