Hits & Takes
John Lothian & JLN Staff
We missed including this story yesterday from the Wall Street Journal and it is a good one. It is from John McCormick and Alexander Osipovich and is titled “Google, CME Cloud Partnership Could Upend Tech Investments by Traders; High-frequency traders have spent years building systems designed to work with the exchange’s data center.”
Matthias Graulich of Eurex posted a commentary to LinkedIn titled “Eurex EUR-OIS outstanding increased 12x since 2018 // EURSTR on the rise.” The story talks about how Eurex successfully managed to transition legacy transactions worth EUR 364 billion referenced to EONIA across to EURSTR and how this represents a major milestone for the European rates transition.
Traders Magazine has a tribute to Sean Sullivan, an OMS sales pioneer, who died at the age of 58. Sullivan was the chief revenue officer at LiquidityBook and died Saturday, November 13, following complications from surgery to remove a brain tumor.
NYSE has a position open on its communications team for a communications associate.
ADM Investor Services announced that Melanie O’Brien has been promoted to the position of director of IB and customer relations. O’Brien has been part of ADMIS in various positions since 1984.
The London Stock Exchange has held 100 IPOs in 2021 year-to-date.
The DC Bar Communities is holding a remote Zoom session on “Nasdaq’s Board Diversity Rule: Implementation and Impact” on Tuesday, November 30, 2021 at 12:00 p.m. – 1:30 p.m. ET.
The Chicago Federal Reserve has a new tool to get a local economic snapshot of a city, county, state, region, or Federal Reserve district to find economic, industry, and demographic information.
Encyclopaedia Britannica is looking for a Manager of Financial Planning and Analysis.
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
FIA Expo 2021: Exegy Merger Seen As Solid Marriage Of Products, Businesses
Why bring Exegy Inc. and Vela Trading Systems together? The firms combined forces last May and two of their executives talked to JLN about the reason behind their merger at the FIA Expo 2021 in November.
David Taylor, Exegy’s chief technology officer and co-president, said the combination allows the companies to have more scale in the marketplace, more tools and more opportunity to invest in the expansion of the company’s offerings. “Growing organically and inorganically was always part of our agenda,” he said.
London’s Banking Uniform Is Now Bespoke Chinos — and Brown Shoes; The financiers are back in London’s financial district. But they’re getting a little harder to recognize.
Ryan Hesketh – Bloomberg
In the once-austere City of London, an era-defining change is underway. Bankers coming back to their desks are leaving their suits at home — and calling time on a decades-old taboo against brown shoes. The City’s streets may be increasingly busy — sandwich sales in London are running at 88% of pre-Covid levels — but more and more returning workers don’t look quite like they did in March 2020. Instead, now comfortable with the informality of video-calling, they are sporting a smart-casual look and adopting a “dress for your day” attitude.
****** I could be a London banker!!!! ~JJL
Ex-JPMorgan Trader Sells Jam, Inspires Italians Who Want to Quit
Marco Bertacche – Bloomberg
After four years in the trenches as a London-based trader for firms including JPMorgan Chase & Co., Andrea Tagliabue decided he’d had enough. Now, the story of how he packed it in and returned to his native Lombardy to create a new life closer to the land is inspiring other Italians who want to move on from their jobs.
***** There are just too many bad jokes to be made here. Let’s just say this is a sweet story.~JJL
Storms Forecast for Thanksgiving Week Could Complicate Holiday Travel Plans; Weather predictions could change, but currently show rain on both coasts early next week
Talal Ansari – WSJ
Inclement weather could mean travel delays for Thanksgiving week, one of the busiest of the year in the U.S. A storm is forecast to bring rain and high winds to the Great Lakes and Upper Midwest starting Sunday. The weather system will then move east, toward New York, accompanied by the coldest air of the season in the region Monday into Tuesday.
***** Be prepared!!! ~JJL
Thursday’s Top Three
Our top story Thursday was The New York Times’s Vaccinated vs. Unvaccinated: Europe’s Covid Culture War. Second was Waters Wrap: What TT’s new owners & CEO could mean for the industry going forward, from Waters Technology. Third was ASX says its DLT-as-a-Service platform is now production-ready, from The Trade News.
26,656 pages; 236,316 edits
Hong Kong Bourse CEO Says China Expansion Will Bring ‘Big Bang of Finance’
Kiuyan Wong – Bloomberg
Hong Kong Exchanges & Clearing Ltd. Chief Executive Officer Nicolas Aguzin said China’s continued expansion will bring about the next “big bang of finance” as the country will look outward to expand investments. Speaking via a video link to the Bloomberg New Economy Forum in Singapore, Aguzin said China’s capital market will triple over the next 10 years and the country will emerge as the largest economy in the world.
Brussels plans central databases to boost capital markets; Draft market infrastructure overhaul aims to make EU more attractive to international investors
Philip Stafford and Sam Fleming – FT
Brussels is planning to create US-style central databases that hold information on publicly listed companies and trading activity as part of a push to boost integration of its capital markets. According to draft documents seen by the Financial Times, the measures will include changes to make it easier for investors to access information on companies operating in the EU and for EU banks and fund managers to find prices of stocks and bonds throughout the single market.
US crops trader ADM invests in digital agriculture platform; Farmers Business Network says it is still ‘challenging incumbent players’ in grain markets
Emiko Terazono – FT
Archer Daniels Midland, one of the world’s largest grain traders and processors, has invested in a digital start-up set up to give farmers more power in agricultural markets long dominated by large companies.
Judge Dismisses Meme-Stock Lawsuit Against Robinhood and Citadel Securities; Ruling says evidence found by investors’ lawyers wasn’t strong enough to support accusations of illegal collusion
Alexander Osipovich – WSJ
Robinhood Markets Inc. HOOD -7.15% scored a victory as a federal judge dismissed a lawsuit accusing the brokerage of colluding with electronic trading firm Citadel Securities to stop investors from buying GameStop Corp. and other meme stocks in January. The lawsuit had been filed on behalf of investors who lost money when Robinhood and other brokerages imposed trading restrictions in GameStop, AMC Entertainment Holdings Inc. and several other stocks on Jan. 28.
Google, CME Cloud Partnership Could Upend Tech Investments by Traders;High-frequency traders have spent years building systems designed to work with the exchange’s data center
John McCormick and Alexander Osipovich – WSJ
CME Group Inc.’s plan to move core trading systems to Google Cloud could upend hundreds of millions of dollars in investments by traders in communications and data centers, industry analysts say.
The US Treasuries market is a dangerous place to dream; When markets awake and reprice Treasuries, there is every chance we will see another nasty jolt
Gillian Tett – FT
For almost two years, a frightening question has haunted the US Treasury and Federal Reserve. No, this is not whether the Fed can engineer a smooth exit from quantitative easing; nor whether this is the right moment to switch the governor (and policy).
Virtu Financial Congratulates Women in Finance Award Recipients and Nominees
Virtu Financial, Inc. (NASDAQ: VIRT) a leading provider of financial services and products that leverages cutting edge technology to deliver innovative, transparent trading solutions to our clients and liquidity to the global markets, congratulates Women in Finance Americas award recipients and nominees. These prestigious awards honor highly accomplished women whose entrepreneurial spirit and leadership make unique contributions to the industry.
Hedge Fund Balyasny Bans Hiring From Ken Griffin’s Citadel Unit
Nishant Kumar and Hema Parmar – Bloomberg
Balyasny Asset Management says it can no longer hire from hedge fund Citadel’s Global Fixed Income business, a rare halt among rivals that often poach talent from each other.
The Crypto Industry’s Solution for Regulation: We’ll Handle It; Big exchanges and investors say traditional agencies don’t have the tools or expertise to oversee the sector.
Joe Light – Bloomberg
The cryptocurrency industry suddenly found itself in the crosshairs of a host of U.S. state and federal regulators this fall, facing millions of dollars of fines, threats of lawsuits, and warnings of new rules to come. Crypto executives say the abrupt—and sometimes overlapping—spate of enforcement threatens to chill innovation, especially in areas where it’s not clear which laws apply. Their solution? Let the industry help regulate itself.
Crypto fever: the pressure grows on wealth managers; Many advisers remain sceptical about digital assets but some are being forced to respond to client demand
Joshua Oliver – FT
The Australian industrialist Victor Smorgon built his family’s fortune in the unglamorous businesses of meatpacking and steel smelting. Almost a century later, his descendants have turned to one of the most cutting edge and high-profile moneymaking opportunities: crypto investing. Early last year, the Smorgon family office, led by Victor’s grandson Peter Edwards, began looking into adding crypto assets to its vast portfolio, which ranges from agriculture to gold mining.
Traders driving rise in institutional demand for ETFs, says BlackRock; According to BlackRock’s co-head of ETF markets and investments, Samara Cohen, traders are pointing portfolio managers towards ETFs in a bid to add fixed income exposure and replace derivatives.
Annabel Smith – The Trade
Institutional interest in exchange traded funds (ETFs) has risen significantly in the last few years and is being driven by trader demand, says BlackRock’s Samara Cohen. Speaking to The TRADE, Cohen suggested that portfolio managers were increasingly turning to ETFs as a result of demand from traders to add fixed income exposure, create cash management sleeves or replace derivatives.
Understanding the Metaverse and How it Relates to Cryptocurrency
Ya?l Bizouati-Kennedy – GoBankingRates.com
The metaverse is rapidly growing, both in cultural awareness and in financial terms, accelerated by Facebook’s Meta name change last month. Since the concept is slowly starting to become more mainstream as several big-name companies are embracing it and some analysts are calling it “the next big investment theme.”
Icap Executes First Solar Derivative Trade
Colin Lambert – The FullFX
In a sign that the inter-dealer broking world still has tremendous opportunities, and also with a nod to the growing focus on ESG in financial markets, Icap has announced the completion of what it terms a landmark deal in weather derivatives.
Austria Will Enter Fourth National Lockdown and Impose Compulsory Covid Vaccinations
Jonathan Tirone and Naomi Kresge – Bloomberg
In European first, Austria will make Covid vaccines mandatory; Germany says it can’t rule out renewed lockdown as cases spike
Austria will again enter a nationwide lockdown and Germany is no longer ruling out a similar move as Europe grapples with a brutal wave of the coronavirus pandemic.
Germany’s Coronavirus Crisis Is Getting Out of Control; Deaths have jumped, hospitals are overwhelmed and curbs may be too late
Chris Reiter and Tim Loh – Bloomberg
Germany’s Covid crisis is about to go from bad to worse, setting the stage for a grim Christmas in Europe. With infections surging relentlessly and authorities slow to act amid a change in power, experts warn that serious cases and deaths will keep climbing. With intensive-care units all but filled in some regions, Europe’s largest economy faces its biggest test yet of the pandemic.
Austria plans to make Covid jabs mandatory as it enters new lockdown; Government would be first in Europe to make vaccines compulsory for its citizens
Sam Jones – FT
Austria’s government will put forward legislation to make vaccination against coronavirus mandatory for all citizens from early next year, making it the first European country to do so, as infection rates continue to soar.
Covid-19 Boosters From Pfizer-BioNTech, Moderna Cleared for All U.S. Adults; The FDA authorized the third dose for anyone 18 years and older, after earlier clearing the shot for people at high risk
Jared S. Hopkins and Felicia Schwartz – WSJ
U.S. health regulators cleared booster doses of the Covid-19 vaccines from Pfizer Inc. and BioNTech SE and from Moderna Inc. for all adults in the U.S., widening the booster campaign as officials worry about a recent uptick in cases.
Exchanges, OTC and Clearing
Russia’s SPB Exchange IPO Prices at Top End of Range
Aine Quinn – Bloomberg
Shares in offering priced at high end of initial range; SPB Exchange plans to list on the Nasdaq in first half of 2022
Russia’s SPB Exchange rose in its trading debut in St. Petersburg after it priced its initial public offering at the top end of a marketed range. The deal, which was aimed at retail investors, priced at $11.50 per share and raised $175 million, the St. Petersburg-based exchange said in a statement. The IPO values the company at $1.3 billion.
ICE Benchmark Administration Provides Update Regarding LIBOR® Cessation and “Synthetic” LIBOR
Intercontinental Exchange, Inc.
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, today announced that ICE Benchmark Administration Limited (IBA), the authorized and regulated administrator of LIBOR®, has provided an update regarding LIBOR cessation and “synthetic” LIBOR following previous announcements from the UK Financial Conduct Authority (FCA).
NYSE US Exchanges to Close in Observance of Thanksgiving Holiday
In observance of Thanksgiving, the New York Stock Exchange, NYSE American Equities, NYSE Arca Equities, NYSE Chicago Equities, NYSE National Equities, NYSE Arca Options, NYSE American Options, and NYSE Bonds markets will be closed on November 25, 2021, and will operate on a shortened trading schedule on November 26, 2021. Regular trading sessions will close for all markets at 1:00 p.m. Eastern Time (ET).
Postponed – NYSE Bonds Proprietary Market Data – Hardware Upgrade
NYSE Bonds has postponed the previously announced hardware upgrade, originally scheduled for Monday, November 22, 2021. The NYSE Bonds hardware upgrade will now occur on Monday, January 24, 2022.
Canadian Solar registers a new 100 million euro Green Bond Program with MARF
BME’s Fixed Income Market, MARF, has registered the first Green Guaranteed Euro Medium Term Note Program by Canadian Solar EMEA Capital Markets, a subsidiary in Spain of Canadian company Canadian Solar Inc. With this bond program, the company will be able to issue up to 100 million euros in medium and long-term securities, which will have a minimum unit nominal value of 100,000 euros, fixed or variable coupons and maturities to be determined at the time of issuance. The bonds will be guaranteed by Canadian Solar Inc. as set out in the documentation filed in MARF.
SIX Launches its SIX Digital Exchange by Successfully Issuing the World’s First Digital Bond in a Fully Regulated Environment
SIX today placed the first senior unsecured digital CHF bond with a total volume of CHF 150 million and maturity in 2026 via its holding company SIX Group Ltd. The bond comprises two exchangeable parts. The digital part (Part A) of the bond will be listed and traded on SDX Trading Ltd and centrally held by SIX Digital Exchange Ltd. The traditional part (Part B) of the bond will be listed and traded on SIX Swiss Exchange Ltd and centrally held by SIX SIS Ltd. This innovative approach ensures the link between the digital and traditional worlds.
TSE to Extend Stock Trading Hours for 30 Minutes Aiming at Resiliency Enhancement; OSE, TOCOM Derivatives Trading Hours to Be Changed Second Half of FY 2024
Tokyo Stock Exchange publicized its “Action Program for Strengthening the Functions of the Cash Equity Market” on 27 October. In the Action Program, TSE stated the extension of its trading hours for 30 minutes and that it will start preparing specific contents towards TSE’s plans to upgrade its cash equity trading system in the second half of FY2024.
Eurex EUR-OIS outstanding increased 12x since 2018 // EURSTR on the rise
Matthias Graulich – Eurex via LinkedIn
Things are moving on the IBOR reform side: since the first publication of the EURSTR risk free rate back in October 2019, its use of a reference and a replacement for EONIA has been rapidly gaining ground. We are therefore very pleased that we recently successfully managed to transition legacy transactions worth EUR 364 billion referenced to EONIA across to EURSTR. This represents a major milestone for the European rates transition, and we are proud of the role that CCPs are playing in IBOR reform and the building of confidence and long-term sustainability in these important benchmarks.
Fintech N26 pulls out of US as it abandons global ambitions; Retreat follows last year’s UK exit and series of public rebukes from German regulator
Olaf Storbeck – FT
Online bank N26 is pulling out of the US, an abrupt reversal of strategy for the once high-flying fintech now under fire from German regulators. The Berlin-based lender, which was valued at EUR7.8bn last month, said the decision would allow it to “sharpen its focus on its European business”.
MarketAxess expands liquidity offering to deal with rising trading demand; According to the fixed income platform provider, the number of active participants trading emerging markets debt reached more than 1,300 firms last quarter.
Annabel Smith – The Trade
With more institutions now trading emerging and frontier markets debt on its platform, MarketAxess has added three new regions — Hong Kong, Egypt and Serbia – to its liquidity offering. The fixed income platform provider cited client demand, the hunt for yield and searching for new opportunities across the emerging and frontier markets as the primary reasons that had led them to these regions.
Growing cloud adoption sees Integral expand its EMEA product and sales teams
New appointments fall in line with Integral’s continued expansion of its product ad sales teams to support the increasing shift by financial institutions to the cloud.
Wesley Bray – The Trade
Financial technology company Integral has named two new hires as it looks to expand its footprint amongst banks and brokers. Ina Patrascu joins as a director in the EMEA sales team, while Julian Elliot has been appointed senior product director for the region.
Acadia Launches new suite of Payment Workflow Automation Tools for Buy and Sell-Side Firms
Acadia, the leading industry provider of integrated risk management services for the derivatives community, announced the introduction of Payments Manager, a new suite of workflow automation services centered around payments.
The new payment service leverages Acadia’s position as the market leader in the global derivatives marketplace where thousands of firms and over 80% of all bi-lateral OTC derivative margin calls are initiated and cash or securities collateral are pledged to meet those obligations daily.
Acadia Launches New Suite of Payment Workflow Automation Tools for Buy and Sell-Side Firms; Community of 300+ firms already matching Interest monthly on cash collateral today.
A major multinational asset management firm and an investment bank are the first two clients live on the swap payment matching platform; Firms can agree on precalculated payments, reconcile and resolve issues with counterparties in a standardized messaging format.
Acadia, the leading industry provider of integrated risk management services for the derivatives community, announced the introduction of Payments Manager, a new suite of workflow automation services centered around payments.
Banks ordered to promptly flag cybersecurity incidents under new U.S. rule
Pete Schroeder – Reuters
U.S. banking regulators on Thursday finalized a rule that directs banks to report any major cybersecurity incidents to the government within 36 hours of discovery.
Separately, the banking industry said it had successfully completed a massive cross-industry cyber security drill that aims to ensure Wall Street knows how to respond in the event of a ransomware attack that threatens to disrupt a range of financial services.
CISA Gets Set to Deploy Updated DNS Resolver Service to Protect Federal Agencies
Brandi Vincent – Nextgov
Government entities are required by law to use such intrusion prevention capabilities.
The Cybersecurity and Infrastructure Security Agency is preparing to deploy a Protective Domain Name System Resolver Service designed to help federal agencies better detect digital threats without busting their budgets.
“We’ll be rolling out next year a protective DNS service,” CISA’s Trusted Internet Connection Program Manager and Senior Cybersecurity Architect Sean Connelly confirmed on Thursday. “It’s an evolution of what we had prior.”
The UK pushes for better supply chain cybersecurity
Graham Cluley – Tripwire
If the UK Government gets its way, IT service vendors and other cloud-based service providers may soon be required to adopt new measures to strengthen their cybersecurity, amid rising concerns about supply chain risks.
The Department for Digital, Culture, Media and Sport (DCMS) has floated plans to make mandatory compliance with the National Cyber Security Centre’s Cyber Assessment Framework, which provides guidance for organisations responsible for vitally important services and activities.
Thousands of Images From Pricey NFTs Are Being Offered for Free
Vlad Savov – Bloomberg
An Australian software developer says he has made thousands of non-fungible token images freely available, calling it an art project that aims to show the absurdity of property-rights concepts in digital assets.
Binance U.S. may raise ‘couple hundred million’ in funding, CEO says
Nikhil Nainan – Reuters
Binance’s U.S. unit may raise a “couple hundred million” dollars in a funding round set to close in a month or two and the global cryptocurrency exchange has also decided on a new headquarters, its chief executive Changpeng Zhao said on Friday.
Binance Chief Zhao Buys His First Home in ‘Pro-Crypto’ Dubai
Chanyaporn Chanjaroen – Bloomberg
Zhao’s choice of city may offer clues for Binance’s home base; Binance is also awaiting a license permit in Singapore
Changpeng “CZ” Zhao, who runs the world’s largest cryptocurrency-exchange, bought his first home last month in Dubai in a show of support for a city he describes as “very pro-crypto.”
Singapore’s OCBC Studying Crypto Exchange, CEO Wong Says
Krystal Chia, Joyce Koh, and Chanyaporn Chanjaroen – Bloomberg
Bank sees efficiency benefits, although it’s not in a rush; Rival DBS plans to expand its digital exchange to retail
Oversea-Chinese Banking Corp. is considering whether to set up a crypto exchange as Southeast Asia’s second-largest lender seeks to respond to customer needs, Chief Executive Officer Helen Wong said. “We are looking at it and seriously there are some work being done in the bank,” Wong told Haslinda Amin in a Bloomberg Television interview Friday, when asked whether the bank would consider offering crypto services as some of its competitors are doing.
Mode clarifies crypto cashback offer after push back from retailers; Boots and Ocado among UK brands denying they ‘approved’ fintech company’s affiliate bitcoin scheme
Adrienne Klasa – FT
London-listed fintech group Mode has been forced to back pedal on claims it would provide cashback in bitcoin to shoppers at retailers, including Boots, Homebase and Ocado, after the companies denied their involvement.
Copy of U.S. Constitution Sells for $43.2 Million as Crypto Group DAO Is Outbid; Private collector beat out a group of cryptocurrency investors who raised more than $40 million to buy the historic document
Kelly Crow and Omar Abdel-Baqui – WSJ
The art market wasn’t ready for revolution. A rare, first-edition copy of the U.S. Constitution sold for $43.2 million at Sotheby’s Thursday, but it appears the winner is a private collector rather than an online group of cryptocurrency investors.
Cryptocurrency group loses bid for copy of U.S. Constitution.
Kevin Roose – NY Times
A group of cryptocurrency fans lost a much-anticipated bid for a rare first printing of the U.S. Constitution at a Sotheby’s auction on Thursday. The group, ConstitutionDAO, conducted a frenzied, weeklong online crowdfunding campaign to place a bid on the artifact, one of only 13 copies known to exist. It had raised more than $40 million in less than a week for the bid.
Cryptocurrencies Can Destabilize Nations, Hillary Clinton Warns
Former Democratic presidential candidate Hillary Clinton took a swipe at cryptocurrencies, saying they have the power to weaken entire countries eventually. Clinton said via video during a panel discussion at the Bloomberg New Economy Forum on Friday in Singapore that governments around the world faced a range of new challenges, including disinformation and artificial intelligence.
In defence of the revolving door; The scandal-hit UK could learn a lot from ‘Government Sachs’
Tom Braithwaite – FT
At a financial industry conference this month, a former government official now with Goldman Sachs introduced a former Goldman banker now in the US government. John Rogers worked in the White House, Treasury and state department before joining Goldman in 1994 and eventually reaching his current position as head of government, investor and media relations.
The Trump SPAC might have just given Gensler and Warren an accidental invitation to start probing it
Thornton McEnery – MarketWatch
By telling the SEC that it won’t be filing its first quarterly earnings report on time, Digital World Acquisition Corp. may be telling Gensler to let its regulatory colonoscopy commence.
Largest U.S. Bank Cuts Ties to Conservative Group, Canceling Donald Trump Jr. Event
Aila Slisco – Newsweek
The country’s largest bank has cut ties with a Missouri conservative group, forcing an event that had been set to feature Donald Trump Jr. to be immediately canceled. The December 3 St. Charles, Missouri, event featuring the son of former President Donald Trump was organized by the conservative Defense of Liberty political action committee. WePay, a payment processor owned by JPMorgan Chase, had reportedly been used to handle the event’s ticket transactions until the arrangement fell apart.
FinCEN Asks Banks to Watch for Transactions Linked to Environmental Crimes; The new emphasis on environmental crimes reflects a governmentwide push by the Biden administration to mitigate the causes of climate change
Dylan Tokar – WSJ
The world of illegal logging might seem far removed from the well-lit offices of the U.S.’s main financial hubs, but the government is hoping bankers can play a part in stopping such crimes. The U.S. Treasury Department’s anti-money-laundering watchdog on Thursday issued its first-ever advisory on environmental crimes, asking banks and other financial institutions to pay special attention to transactions that may be linked to activity that the agency says contributes to climate change and a loss of biodiversity.
SEC Announces Enforcement Results for FY 2021; Agency Brought Significant Actions in Traditional and Emerging Areas; Whistleblower Program Surpassed $1 Billion in Awards
The Securities and Exchange Commission today announced that it filed 434 new enforcement actions in fiscal year 2021, representing a 7 percent increase over the prior year. Seventy percent of these new or “stand-alone” actions involved at least one individual defendant or respondent. The new actions spanned the entire securities waterfront, including against emerging threats in the crypto and SPAC spaces. For example, the SEC charged a company for operating an unregistered online digital asset exchange, charged a crypto lending platform and top executives alleging a $2 billion fraud, and brought an action against a special purpose acquisition company, its merger target, top executives, and others for alleged misconduct in a SPAC transaction. The SEC’s whistleblower program was critical to these efforts and had a record-breaking year.
SEC Proposes Rule to Provide Transparency in the Securities Lending Market; Proposed Rule Would Increase Availability of Information Regarding Securities Lending Transactions
The Securities and Exchange Commission today published proposed Exchange Act Rule 10c-1, which would require lenders of securities to provide the material terms of securities lending transactions to a registered national securities association, such as the Financial Industry Regulatory Authority. The registered national securities association would then make the material terms of the securities lending transaction available to the public.
SEC Proposes Updates to Electronic Recordkeeping Requirements; Amendments Will Help Modernize How Broker-Dealers Preserve Electronic Records and Enhance the Requirements for Security-Based Swap Entities
The Securities and Exchange Commission today published proposed amendments to the electronic recordkeeping and prompt production of records requirements applicable to broker-dealers, security-based swap dealers (SBSDs), and major security-based swap participants (MSBSPs).
SEC Charges Promoter with Conducting Cryptocurrency Investment Scams
The Securities and Exchange Commission today announced that it charged Ryan Ginster of Corona, California with conducting two unregistered and fraudulent securities offerings that raised over $3.6 million in cryptocurrency from retail investors. The SEC’s complaint alleges that, from 2018 to 2021, Ginster raised approximately $3.6 million in Bitcoin through two online platforms—MyMicroProfits.com and Social Profimatic—that promised astronomical rates of return by falsely claiming returns through, amongst other activities, purported “cryptocurrency trading and advertising arbitrage.” The complaint also alleges that Ginster deceived investors in both offerings about, among other things, how their funds would be used, because Ginster misappropriated at least $1 million of the funds raised to pay personal expenses, including tax payments, housing expenses, and credit card bills.
Proposed Updates to Securities Lending Market
Chair Gary Gensler – SEC
This week, the Commission voted unanimously in support of a proposed rule designed to strengthen the transparency and efficiency of the securities lending market. Securities lending and borrowing is an important part of our market structure. The lending process can help investment funds, endowments, and pension funds generate additional revenue. The borrowing process can help broker-dealers and investors participate in market-making, short selling, and other activities.
Updates to Electronic Recordkeeping
Chair Gary Gensler – SEC
This week, the Commission voted unanimously in support of a proposal to update the electronic recordkeeping requirements for intermediaries such as broker-dealers and certain security-based swap dealers. This proposal updates an electronic recordkeeping rule adopted in 1997. A lot has changed with respect to database management, among other technologies, in the last 24 years. This proposal would bring the Commission’s rule in line with technological innovation, and I am pleased to support it.
CFTC Adopts Technical Amendments to Rules Governing Reparations Proceedings
The Commodity Futures Trading Commission announced today that it has unanimously approved a final rule adopting technical amendments to the rules governing reparations proceedings. The amendments to Part 12 of CFTC regulations change the title of the Judgment Officer position to Administrative Judge and incorporate gender-neutral language, where applicable.
CFTC Staff Extends Existing Temporary No Action Relief Related to Brexit
The Commodity Futures Trading Commission’s Division of Market Oversight (DMO) and Market Participants Division (MPD) announced today that they are extending previously granted temporary no-action relief in connection with the withdrawal of the United Kingdom (UK) from the European Union (EU), known as Brexit.
FCA confirms recognition of the revised FX Global Code and the Global Precious Metals Code
The Financial Conduct Authority (FCA) is today confirming under its code recognition scheme that it is: Recognising the updated FX Global Code (the FX Code) – maintained and updated by the Global Foreign Exchange Committee, this Code sets principles of good practice standards for the global foreign exchange (FX) market, promoting the integrity and effective functioning of the wholesale FX market. Recognising the Global Precious Metals Code (the PM Code) – maintained and updated by the London Bullion Market Association, setting out principles to promote the integrity and effective functioning of the global precious metals market. Both these voluntary market codes have been written and are owned by the industry and reflect their views of best practice
FCA enters examination stage in the registration of first UK securitisation repositories
The Financial Conduct Authority (FCA) announces that it has assessed completeness and now reached the examination stage in the assessment process of applications received from Securitisation Repositories (SRs) under the UK Securitisation Regulation.
ESMA Chair Verena Ross Delivers Keynote Speech At The DSW ESG Conference 2021
ESMA Chair, Verena Ross, delivered the keynote speech at the DSW Conference “ESG – Next Level Reporting, Risk Management, Strategy and Responsibility” 2021. Ross reiterated that ambitious and targeted measures to address greenwashing will play an important role in the forthcoming ESMA activities in the sustainable finance area. The Authority intends to work closely with national securities regulators to promote a coordinated approach across the EU to tackling this issue.
Investing and Trading
New Tesla Price Target Ties Wedbush as Most Bullish Analyst
Kit Rees – Bloomberg
Tesla could capture half of $5 trillion EV market: Wedbush; Wedbush raises PT to $1,400, matching Jefferies’ Street high
Even the recent drop in Tesla Inc. shares isn’t enough to dissuade its most bullish analysts. The electric-vehicle maker, which has been under pressure amid stock sales by Chief Executive Officer Elon Musk, got a new $1,400 price target at Wedbush Securities — a joint Street-high among analysts tracked by Bloomberg. Wedbush said Tesla could win half of what is set to be a $5 trillion EV market.
Low yields have left investors numb to risk, bond veteran Dan Fuss says; Loomis Sayles vice-chair warns markets have given up ‘natural prudence and caution’
Robin Wigglesworth – FT
The strong rally in corporate debt markets triggered by a flood of central bank stimulus is spooking veteran bond investor Dan Fuss, who warns that investors are taking the most risks he has seen in the past six decades.
Environmental, Social and Corporate Governance
Cow Feed That Cleans Potent Methane Burps Nears Europe Rollout
Aine Quinn – Bloomberg
EU watchdog says DSM’s feed additive is safe for dairy cows; Bovaer can cut dairy cows’ methane emissions by about 30%
A feed additive that cuts methane burped out by cows — a major contributor to agricultural emissions — moved a step closer to being sold in Europe. The European Union’s food watchdog said Dutch nutrition company Royal DSM NV’s Bovaer product is safe and effective for dairy cattle. It wasn’t asked to decide on safe levels for other categories such as beef. Europe is the world’s second-largest milk producer, and Bovaer has already been approved for beef and dairy cows as well as sheep and goats in Chile and beef giant Brazil.
The EU’s looming mismatch between climate ambition and minerals supply; Brussels needs to deliver an effective industrial policy to shore up its metals sector
Guy Thiran – FT
The EU has long looked to take a global lead on climate, and its 2030 goal to reduce net greenhouse gas emissions by 55 per is a benchmark for decisive global action.
Fed Programs Have Kept Finance Flowing to Fossil Fuels; Oil-and-gas companies have logged record amounts of private-sector financing since Fed’s 2020 interest-rate cuts and corporate bond-buying programs
Dion Rabouin – WSJ
The world’s biggest banks and investors recently pledged at the Glasgow climate conference to crimp the flow of finance to fossil fuels. But the Federal Reserve’s pandemic-era rescues have kept the spigot open.
Most G-Sibs fail to disclose financed emissions; None of the world’s top 30 banks disclose climate impact of their whole portfolio
Joasia E. Popowicz – Risk.net
Less than half of the top 30 global banks have published climate disclosures linked to carbon emissions stemming from their investment and lending activities, Risk Quantum analysis shows. A review of the Task Force on Climate-Related Financial Disclosures – seen as the gold standard for climate reporting – from the global systemically important banks (G-Sibs) that disclose them, found only 13 reported financed emissions. //
JPMorgan Ex-Brokers Fight Grandma in Court, Seeking Her Silence
Tom Schoenberg – Bloomberg
Beverley Schottenstein, grandsons spar over Finra award payout; Grandsons say they had a gag-order deal; ‘Forget it,’ she says
A 95-year-old Florida woman who won an arbitration fight against her banker grandsons is now battling them in court — seeking to collect the award, and also to preserve her ability to speak freely about her experience.
Janus Henderson chief Dick Weil to retire as activist pressure builds; Abrupt move comes after Nelson Peltz recently increased stake in underperforming asset manager
Chris Flood – FT
Dick Weil is to retire as the chief executive of Janus Henderson in March in an abrupt move as the underperforming $419bn global asset manager comes under pressure from a prominent activist investor.
Your Index Fund Has Diamond Hands; Active managers struggle to beat index funds, but they have the advantage of being able to dump obviously overvalued meme stocks, while the latter can’t
Spencer Jakab – WSJ
Does it matter if your chairman has a small wee-wee? The revelation was worth half a billion dollars to shareholders of GameStop GME 0.06% when the company’s chairman, Ryan Cohen, tweeted out the confession, written backward, on Monday. What about seeing your chief executive in his underwear? That was good for a whopping $3 billion rise in market value for AMC Entertainment Holdings AMC -4.08% back in June when CEO Adam Aron lost control of his laptop camera during an interview.
On The Move At ADMIS
ADM Investor Services
ADMIS is happy to announce that Melanie O’Brien has been promoted to the position of Director of IB and Customer Relations! Melanie has been an integral part of ADMIS in various roles since 1984.
Northern Ireland’s post-Brexit trading advantage lures packing giant; Ardagh’s investment in Belfast factory seen as vote of confidence in region’s protocol
George Parker and Jude Webber – FT
A total of 170 jobs are to be created in Northern Ireland by one of the world’s biggest packaging companies, the latest business seeking to exploit the region’s “best of both worlds” post-Brexit trading status.
Andrew Mackenzie, the Shell chair renouncing its Royal Dutch roots; Natural resources veteran fronting energy giant’s move to UK has long believed in corporate simplicity
Tom Wilson and Neil Hume – FT
“Simplicity equals truth,” Andrew Mackenzie told the Financial Times in 2015. Then chief executive of the world’s biggest miner BHP Group, he was about to embark on an ambitious overhaul, spinning off or selling various parts of the sprawling business.
Banks to be forced to offer scam victims compensation; Government plans law empowering regulator to make reimbursement compulsory for ‘push payment’ victims
James Pickford – FT
UK banks will be forced to offer refunds to blameless victims of “push payment” scams under government plans for new legislation to tackle the growing menace of financial fraud.