How the World Ran Out of Everything

Jun 1, 2021

First Read

$42,176/$300,000 (14.1%)

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It Is No Gamestop, But It Is Something
Thom Thompson – John Lothian News

After what seems like forever, PanXchange’s Benchmarks & Analysis finally reports an uptick in May prices for CBD biomass as well as a wide variety of refined products. Non-CBD hemp prices are also flashing green now.

Field-planting of hemp is underway now for a crop that will begin to be harvested later this summer and fall. In the meantime, refiners and processors are bleeding down inventories from last year’s (and 2019’s?) harvests. PanXchange has been reporting for months that its sources say a lot of semi- and unprocessed hemp was held back off the market – maybe not an unreasonable thing for a farmer to do in the face of falling prices.

Last summer, prices for hemp and refined products continued the decline that started in October 2019. This is the first reversal of an 18-month trend.

Rising prices and the prospects for a whole new harvest coming onto market should lure remaining hemp out of storage. But if a lot of hemp and distillates does come onto market this summer, that will nip this very minor rally in the bud.

To read the rest of this story, go HERE.

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Hits & Takes
John Lothian & JLN Staff

Welcome to the month of June in the year 2021. May is complete and we are getting ready for the summer months. This weekend there were all kinds of signs of normality back in my life. My neighborhood held a block party on our street and not a mask was in sight. My cousin Tom and his wife Kelly hosted a family get together for the Memorial Day holiday. It was nice to be back with people again.

The Financial Times has a Special Report titled “Exchanges, Trading and Clearing: The New Landscape; Exchanges chase data deals; London claws back losses to Amsterdam; taking trading tech into new markets.” — FT

The stories in the Special Report include:

– Stock exchanges seek out deals with data providers; The industry has grown as companies adjust to risks from increased online activity — FT
– London fights back after Brexit trading win for Amsterdam; UK rule changes target business also lost to Dublin, Paris, Luxembourg and Frankfurt — FT
– Exchange technology races into markets from betting to art; Companies behind digital trading are moving into gambling, real estate and property — FT
– Brexit rift pushes swaps market trading out of London; New York and Amsterdam are the main beneficiaries of UK-EU divide on regulation – FT
– Reforms aim to sharpen London’s listings edge; The capital is trailing rivals in the race for big IPOs — but new recommendations divide opinion — FT
– Exchange outages spark demands for action; A series of shutdowns last year put failures — and how to avoid them — in the spotlight — FT

CBOE veteran trader and former CBOE board of directors representative William R. Power has passed away. He also served as a member of the MGEX board of directors and was an adviser to the NYSE at one time. Remarkably, he cycled across Iowa 23 times in the Register’s Annual Great Bicycle Ride Across Iowa. Condolences to his family and friends. — Elegy Cremation & Memorial Services

SGX has appointed a new head of global sales and origination. Pol de Win joins SGX and will succeed Chew Sutat, who will be retiring from the company on 31 July 2021. Welcome Mr. de Win and thank you to Mr. Chew Sutat for your years of service. — SGX

There were no new donations to the JLN MarketsWiki Education GoFundMe campaign over the weekend. Support our efforts to preserve industry history by giving to our GoFundMe campaign.

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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The long holdup in the awarding of Illinois’ social equity cannabis dispensary licenses may finally be coming to an end. The publication Grown In reported this morning that the Illinois Senate sent a bill Friday to Gov. J.B. Pritzker to sign that should restart that process. Applicants for the 40 craft grow, infuser and transport licenses remain in limbo. Read more here.~SC

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US small-cap value outperforms by widest margin since 2nd world war; Research shows returns of 77% against 14% for large-cap growth in six months to the end of March
Steve Johnson – FT
Beaten up US small-cap value stocks outperformed large-cap growth ones by the largest margin since the depths of the second world war in the six months to the end of March, data show. The remarkable bounceback comes after a lengthy period in which small-cap and value stocks have undershot the broader market, despite both being widely recognised in academic papers as investment “style factors” that have historically generated long-term outperformance.
/jlne.ws/3pgTx5a

******I really Russell with how to invest in small-caps.~JJL

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Tulsa’s ‘Black Wall Street’ teaches us about racial economic discrimination; The effects of the massacre 100 years ago still reverberate through the US today
Ashley Howard – FT
One hundred years ago, white vigilantes in Tulsa, Oklahoma, raided the black Greenwood community, bursting into homes, killing occupants, looting possessions and setting structures ablaze. Scholars estimate that the crowd killed up to 300 people and that the remaining 10,000 residents were left homeless.
/jlne.ws/3ca9CEh

*****How much did this not just hurt the Black community, but the nation as a whole? Think about if some people had burned down Wall Street and its businesses in New York.~JJL

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The Forgotten Women of Black Wall Street; The neighborhood attacked in the Tulsa Race Massacre was known as a Black intellectual and financial mecca. Women were a little-known part of its success.
Brentin Mock – Bloomberg
Here’s what’s known famously about Greenwood, the early 20th century Black community of Tulsa, and infamously about its destruction: Black businessmen helped build Greenwood into a financial Black mecca that produced an abundance of successful entrepreneurs, some of whom turned into millionaires.
/jlne.ws/3c8NgTv

***** How much did this hurt the Black women on Tulsa’s Wall Street and the women across the nation as a whole? Think about all this damage every time you hear about the Greenwood Project. We hurt everyone, including ourselves, with racism, sexism or any kind of discrimination and hate. ~JJL

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US regulation on cryptocurrencies could be coming; A rundown of the most important global business stories you need to know for the coming day, from the newsroom of the Financial Times.
FT
US eyes crypto regulation amid concern that a lack of oversight could harm savers and investors American retailers are rushing to secure inventory ahead of the year end holiday season, US financial authorities are preparing to take a more active role in regulating the $1.5tn cryptocurrency market, and Russia released $500m in credit to Belarus as western countries target Minsk with sanctions. Plus, the FT’s Unhedged columnist Robert Armstrong explains why he thinks bitcoin might be better thought of as an equity call option than a currency.
/jlne.ws/2SJoJxM

*****I might bet my bottom dollar and my top bitcoin on this happening.~JJL

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Friday’s Top Three
Our top story Friday was the Financial Times’ The rise of crypto laundries: how criminals cash out of bitcoin. Second was Chuck Mackie’s Consensus 2021 — Day Four and Wrap, about the final day of Coindesk’s crypto conference. Third was Earnings Announcements & Retail Participation: A deep-dive into after-hours trading, from the NYSE.

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Lead Stories

How the World Ran Out of Everything; Global shortages of many goods reflect the disruption of the pandemic combined with decades of companies limiting their inventories.
Peter S. Goodman and Niraj Chokshi – NY Times
In the story of how the modern world was constructed, Toyota stands out as the mastermind of a monumental advance in industrial efficiency. The Japanese automaker pioneered so-called Just In Time manufacturing, in which parts are delivered to factories right as they are required, minimizing the need to stockpile them.
/jlne.ws/3uFtCVQ

US regulators signal bigger role in cryptocurrencies market; New OCC head says agencies should set a ‘regulatory perimeter’ for digital coins
Gary Silverman and James Politi – FT
US financial authorities are preparing to take a more active role in regulating the $1.5tn cryptocurrency market as concern grows that a lack of proper oversight risks harming savers and investors.
/jlne.ws/3uFrBcj

Rebuild ‘Black Wall Street’ as a National Atonement; Before the massacre 100 years ago, Tulsa’s Greenwood District was a model of the American dream. It can be again.
Noah Smith – Bloomberg
On Monday, it will be exactly 100 years since the Tulsa Race Massacre of 1921. In an orgy of violence, White Tulsans — aided by elements of the city government — killed dozens or possibly hundreds of their Black neighbors, injured many more, and left 10,000 homeless. Though this was just the largest of many similar outbreaks of anti-Black violence in the late 1910s and early 1920s, it carries a special place in memory, because in addition to the human carnage, it destroyed the country’s most thriving concentration of Black-owned businesses — Tulsa’s Greenwood District, known to many as Black Wall Street.
/jlne.ws/3wOH1MQ

Deutsche Börse offers market participants access to historical FX data from 360T
Deutsche Börse
Deutsche Börse is expanding its market data offering through its data shop to include FX data from 360T. The Data Shop provides access to historical data from the Historical Data Feed (HDF), which was developed due to the high demand in the foreign exchange business. This new offering significantly increases the availability of historical data for foreign exchange market participants.
/jlne.ws/3wJIlAv

Volatile Markets Create Demand for Modernized Platforms and Digital Models for Market Infrastructure Operators, According to Nasdaq and Celent Survey; Agility, product creation, and customer centricity are driving the agenda when planning for the future technology state
Nasdaq
Today Nasdaq (Nasdaq: NDAQ) and Celent released the results of the CIO Market Infrastructure Survey 2021, commissioned by Nasdaq. The survey is based on interviews with 25 chief information officers and senior technology leaders of market infrastructure operators (MI) worldwide to understand their focus, priorities, and investments around the creation of their future technology platforms. With the COVID-19 pandemic acting as a stress test on capital markets infrastructure – exposing data flow, scaling, and operational challenges – the survey results uncover increasing demand to move to more agile technology, microservices, and data models.
/jlne.ws/3z1MeTt

Nasdaq Acquires Emerging Carbon Removal Market Puro.earth; Expansion of ESG strategy into new marketplace supports sustainability efforts of Nasdaq´s corporate clients
Nasdaq
Nasdaq (Nasdaq: NDAQ) today announced its acquisition of a majority stake in Puro.earth, a leading marketplace for carbon removal. Puro.earth is the world´s first marketplace to offer industrial carbon removal instruments that are verifiable and tradable through an open, online platform. The platform already provides carbon removal services to some of the world’s leading corporations, including Microsoft and SEB.
/jlne.ws/2S32XF9

Credit Suisse Cuts Risk as Defections Mount in Wake of Scandals
Melissa Karsh, Giles Turner, and Marion Halftermeyer – Bloomberg
Firm severs SoftBank ties, stems withdrawals from RenTec Fund; Its stock tumbled 14% this year, worst performance among peers
Credit Suisse Group AG is grappling with how to keep top bankers from fleeing to competitors and drastically reducing risk as new Chairman Antonio Horta-Osorio seeks to recover from a series of scandals.
/jlne.ws/3i8z0Oz

Bitcoin ETF applications gather dust as SEC’s Gensler frets over ‘gaps’ Hopes have dimmed that US agency’s new chair would quickly approve cryptocurrency funds
Aziza Kasumov, Michael Mackenzie and Madison Darbyshire – FT
Interested in ETFs?
Visit our ETF Hub for investor news and education, market updates and analysis and easy-to-use tools to help you select the right ETFs. Exchange traded fund managers eager to cash in on the frenzied trading around cryptocurrencies are bracing themselves for longer than expected regulatory scrutiny after comments from Securities and Exchange Commission chair Gary Gensler damped hopes of a swift approval of bitcoin ETFs this year.
/jlne.ws/2R9bPZk

SPAC Pullback Pressures Creators to Find Quality Mergers; Many SPAC teams are wooing startups to finish deals within two years
Amrith Ramkumar – WSJ
Competition among so-called blank-check companies to find mergers is already stiff. Share-price declines and a ticking clock to take companies public are ratcheting up the pressure. The new challenges for creators of special-purpose acquisition companies, or SPACs, result in part from the abundance of the deals that raised money early in 2021. Looming over these firms is a two-year deadline to do a deal or hand back cash to investors.
/jlne.ws/3p7jhAV

Wall Street’s new love affair with China; At a time of growing geopolitical competition, US and European investment firms are plunging into the Chinese market
Thomas Hale, Harriet Agnew, Michael Mackenzie and Demetri Sevastopulo – FT
When the Biden administration announced a fresh investigation into the origins of the coronavirus outbreak in Wuhan on Tuesday, the Chinese reaction was swift and furious. Zhao Lijian, foreign ministry spokesperson, accused the US of “political manipulation” and of “stigmatising” China — the sort of regular spat that has prompted growing comparisons to the cold war.
/on.ft.com/3oZkSsg

The Covid Trauma Has Changed Economics—Maybe Forever; Policymakers learned the lessons of 2008 and deployed a wider set of tools to help repair the damage from Covid. They know how to create a recovery, but can they manage the boom?
Matthew Boesler – Bloomberg
Once ideas about how to manage the economy become entrenched, it can take generations to dislodge them. Something big usually has to happen to jolt policy onto a different track. Something like Covid-19. In 2020, when the pandemic hit and economies around the world went into lockdown, policymakers effectively short-circuited the business cycle without thinking twice. In the U.S. in particular, a blitz of public spending pulled the economy out of the deepest slump on record—faster than almost anyone expected—and put it on the verge of a boom. The result could be a tectonic transformation of economic theory and practice.
/jlne.ws/3uGpTqO

EU set to unveil digital wallet fit for post-Covid life; App will allow citizens across bloc to securely access a range of private and public services with a single online ID
Javier Espinoza – FT
The EU is set to unveil detailed plans for a bloc-wide digital wallet on Wednesday following requests from member states to find a safe way for citizens to access public and private services online.
/jlne.ws/34yf67C

The real bond kings and queens sit on the Federal Reserve throne; Cash has been trash for years but soon it may be the only haven for investors
Bill Gross – FT
Let me be honest. The only bond kings and queens over the past half-century since credit was unleashed from its gold standard in the early 1970s have been the US Federal Reserve chairs.
/jlne.ws/34y7rGm

Supervisors step up pressure on banks to tackle climate risk; Central banks seek action plans from lenders on dealing with threats to the environment
Martin Arnold – FT
Two motorised paragliders circled the European Central Bank’s headquarters earlier this year, before landing on it to unfurl a bright yellow Greenpeace banner declaring “Stop funding climate killers”. The message for the region’s monetary policy chiefs was clear.
/jlne.ws/2SNUx4h

Investors seeking cosmic themes could find space ETFs fall short; Analysts say the funds often have only tenuous connections to the commercial possibilities of outer space
Chris Flood – FT
Investors hoping to gain exposure to the commercial possibilities of outer space with exchange traded funds will soon be offered their first European-listed opportunity when HANetf’s newest vehicle launches in early June.
/jlne.ws/2TBELu5

FESE: Europe Must Foster Transparent Markets To Remain Competitive – Fragmentation & Opacity Are Detrimental To Issuers And Investors; FRAGMENTATION & OPACITY ARE DETRIMENTAL TO ISSUERS AND INVESTORS
FESE
Shedding light on the reality of capital markets in Europe, today’s virtual Convention of the Federation of European Securities Exchanges (FESE) comes at a vital moment for decision makers. In a year in which important regulatory decisions have to be made, the Convention is set around efficient public capital markets and their core role in driving European economic growth, investment and competitiveness – to the benefit of investors and issuers.
/jlne.ws/3wOEbHq

The World Federation of Exchanges Paper Analyses who Benefits from Exchange Data
The World Federation of Exchanges
The World Federation of Exchanges (“The WFE”), the global industry group for exchanges and CCPs, today published a paper to advance thinking on fairness and transparency in equity market data. Titled ‘Not what, but who’, the WFE paper identifies the different types of user demand; and what are in effect distinct data products manufactured by exchanges.
/jlne.ws/3i6yrF1

IOSCO to launch 2021 World Investor Week to promote investor education
IOSCO
The International Organization of Securities Commissions (IOSCO) is preparing to launch its fifth annual World Investor Week (WIW) from 4 to 10 October 2021. Like last year, jurisdictions can choose any other week of October or November to promote financial and investor education, considering the conditions resulting from the COVID-19 pandemic.
/jlne.ws/3cbvG1c

Why the Pandemic Was a Breakout Moment for the Cannabis Industry; For many Americans, having enough marijuana was as essential as stocking up on toilet paper. And suppliers found a way to get it to them.
By Patricia Alfonso Tortolani – NY Times
“I expect this will be the first year Nevada does over a billion in cannabis sales,” said Nicolas MacLean, chief executive of Aether Gardens, a cannabis producer in Las Vegas. “And it happened on the back of what I think no one expected.”
/jlne.ws/3fSXo3O

‘To The Moon’; How did a bunch of amateurs take Wall Street by surprise? Our five-part podcast series goes inside the GameStop saga.
The Wall Street Journal
When GameStop’s stock took off in January, it caught a lot of people by surprise, especially institutional Wall Street investors. Why was a stock for a struggling video game retailer shooting up almost 2,000%?
/jlne.ws/3gfSGh5

Coronavirus

Sinovac Shot Controls Covid in Brazil Town After 75% Covered
Bloomberg News
Vaccine prevents 80% symptomatic disease in town of 45,000; Deaths, hospitalizations and cases dropped sharply in Serrana
A study of a small Brazilian town vaccinated with the shot made by Sinovac Biotech Ltd. showed it can control Covid-19 outbreaks more effectively than expected from clinical testing, giving another boost to the Chinese-made inoculation that’s relied on by dozens of developing countries.
/jlne.ws/3p8xE7W

Germany Lowers Virus-Risk Level as Pandemic Threat Recedes
Naomi Kresge – Bloomberg
RKI warning reduced to ‘high’ after six months at ‘very high’; ‘It could be a really good summer,’ Health Minister Spahn says
Germany cut its Covid-19 risk level to “high” from “very high” in the latest sign that the coronavirus pandemic is loosening its grip on Europe’s largest economy. After raising its contagion warning in December, the Robert Koch Institute — the country’s public health authority — is lowering it on Tuesday, according to Health Minister Jens Spahn. The move is a sign of lower infections and fewer people with the virus in intensive care, he said.
/jlne.ws/2SP152A

Hong Kong Calls on Banks to Push Staff to Get Vaccinated
Denise Wee – Bloomberg
HKMA asks banks to draw up list of staff to receive vaccine; List should include staff in wealth management, branches
Hong Kong urged all banks to “strongly encourage” staff in client-facing roles or support functions to get vaccinated as the city struggles with local resistance to its free rollout. Banks should “identify and draw up a list of designated staff expected to receive inoculation,” Hong Kong Monetary Authority Deputy Chief Executive Arthur Yuen said in a circular to financial institutions on Tuesday. Banks are required to submit the list of designated staff within two weeks.
/jlne.ws/3vI6gQB

Japan’s Much-Maligned Vaccine Campaign Quietly Gathers Speed
Gearoid Reidy – Bloomberg
Pace of vaccinations has increased fourfold in two weeks; Japan is doing ‘exceptionally well,’ says one critic
After some false starts, Japan’s much-delayed vaccine rollout is quietly picking up steam. The seven-day average of doses has quadrupled in just two weeks, with about a quarter of the 13.2 million shots given coming from the past week alone. A flurry of initiatives are being implemented or floated to further ramp up the drive — among them an expansion of those qualified to administer the shots as well as mass vaccination at workplaces and in “nighttime entertainment” districts.
/jlne.ws/3p9N8sh

Covid-19 vaccines burnt as shelf-life complicates global rollout; Dose expiry dates and delayed international deliveries mean some jabs arrive too late to be used
Donato Paolo Mancini, Joseph Cotterill and Andres Schipani – FT
Inefficiencies in the global distribution of vaccines and the relatively short shelf-life of the leading jabs have meant that doses have arrived in some countries too late for the shots to be used.
/jlne.ws/3uBT6mR

Indian doctors protest against guru who claims yoga can defeat Covid; Baba Ramdev promotes traditional concoction and calls modern medicine ‘a stupid bankrupt science’
Amy Kazmin and Jyotsna Singh – FT
Thousands of Indian doctors are expected to wear black armbands on Tuesday to protest against a guru and ally of Prime Minister Narendra Modi who claims that yoga and traditional medicine offer stronger protection against Covid-19 than vaccines.
/jlne.ws/3vF8QHh

Scientists warn against June lifting of all Covid restrictions in England; Concern grows over the spread of the coronavirus variant first detected in India
Jasmine Cameron-Chileshe – FT
Two scientists advising the government have warned against lifting all remaining coronavirus restrictions in England on June 21, as fears grow over the continued spread of the B.1.617.2 variant first identified in India.
/jlne.ws/3fEy4jb

Covid-19 Prevention Measures Are Keeping Childhood Diseases Like Chickenpox at Bay; Washing hands and disinfecting remain valuable even after the pandemic fades, doctors say
Peter Landers and Miho Inada – WSJ
The disinfecting and hand-washing that became common during the Covid-19 pandemic have also served as powerful tools against a host of childhood ailments such as chickenpox, stomach viruses and strep throat, recent data suggest.
/jlne.ws/3uAah8h

Vaccine Makers Face Challenge in Sustaining Winning Streak; The companies likely will have to continue selling huge numbers of shots, or find other illnesses for their technology to tackle, investors say
Gregory Zuckerman – WSJ
Covid-19 vaccine-makers’ shares have soared since the beginning of 2020. Moderna Inc. MRNA 3.05% is up about 850%, BioNTech SE has risen 510% and Novavax Inc. NVAX -2.08% is up nearly 3,620%. Each of these companies has produced vaccines that have won regulatory authorization or are expected to win that backing. Some of the vaccine makers are racking up huge revenues. Their valuations assume more big gains, which depend on the next stages of the pandemic and whether the companies’ vaccine technology can be used to treat other diseases.
/jlne.ws/3pcxMn4

Exchanges, OTC and Clearing

New York Stock Exchange president wants to remain in NYC; However, would consider leaving if customers wanted that, Stacey Cunningham said
FOX Business Staff
New York Stock Exchange President Stacey Cunningham joined FOX Business’ “Cavuto: Coast to Coast” and said that, while the NYSE “certainly” wants to stay in New York City, changing locations isn’t out of the question.
/fxn.ws/3vyluHN

Q1 2021 Brings GPW Group’s Superior Financial Results
GPW
GPW Group’s revenue at PLN 112.3 million in Q1 2021 (+15.5% YoY);EBITDA at PLN 53.6 million (+7.1% YoY);Net profit at PLN 38.7 million (+32.1% YoY); Recommended dividend for 2020 at PLN 104.93 million (PLN 2.5 per share)
The Warsaw Stock Exchange Group (GPW Group) generated sales revenue of PLN 112.3 million, EBITDA of PLN 53.6 million, and a net profit of PLN 38.7 million in Q1 2021. All those financial parameters improved considerably year on year.
/bit.ly/3fQI8Vo

NYSE – EXTENSION OF DECOMMISSION DATE FOR NYSE LEGACY SESSIONS
NYSE
On October 5, 2020, NYSE Pillar sessions became available for Floor Broker systems. Currently, NYSE legacy sessions are scheduled to be decommissioned on July 1, 2021. Pending effectiveness of a regulatory filing, NYSE will extend the final decommission date to September 1, 2021.
/bit.ly/3yEWS2d

Turkey’s Second Biggest E-Commerce Platform Files for Nasdaq IPO
Ercan Ersoy – Bloomberg
SEC filing comes after revenue more than doubled last year; It follows string of multi-billion dollar tech deals in Turkey
Turkey’s second biggest online shopping platform by market share applied to list its shares on Nasdaq amid a flurry of investor interest in the nation’s burgeoning start-up scene.
/jlne.ws/3pkxY3L

IHS Markit Begins Publishing Daily Credit Inclusive Term Rate (CRITR) and Credit Inclusive Term Spread (CRITS) for US Dollar Funding
IHS Markit
IHS Markit (NYSE: INFO), a world leader in critical information, analytics and solutions, is now publishing a series of forward-looking dynamic term rates that measure the daily US Dollar (USD) cost of funding in institutional markets. These rates include the IHS Markit USD Credit Inclusive Term Rate (CRITR) and the IHS Markit USD Credit Inclusive Term Spread (CRITS), which are designed to provide banking institutions a broad measure of USD funding costs on a senior unsecured basis.
https://jlne.ws/3c7TrY9

Deutsche Börse expands data offering with historical FX 360T data; The expanded data set can be used across transaction cost analysis, identifying long-term trends and correlations, and back-testing pricing models.
Wesley Bray – The Trade
Deutsche Börse has expanded its market data offering by providing historical foreign exchange (FX) data from its FX trading platform 360T through its Data Shop. The Data Shop gives market participants the ability to access historical data from the Historical Data Feed (HDF) which was designed to meet the high demand from participants within the FX industry.
/jlne.ws/3wNPAr7

Accor Acquisition Company lists on Euronext Paris; FIRST CORPORATE SPAC LISTING IN EUROPE, EUR300 MILLION RAISED
Euronext
Euronext today congratulates Accor Acquisition Company (AAC), a corporate Special Purpose Acquisition Company (SPAC) sponsored by the Group Accor, a World leading hospitality company, on its listing. AAC is dedicated to carrying out acquisitions of companies operating in activities adjacent to hospitality. AAC will be listed on the professional compartment of Euronext’s regulated market in Paris (ticker code: AAC). This is a special first for Euronext as it marks the first corporate SPAC listing in Europe.
/jlne.ws/2TzRhdp

PrimaryBid launches its platform in France, in partnership with Euronext, to democratize individual access to financial markets
Euronext
Building on its success in the United Kingdom, the award-winning fintech, which provides private investors with access to fundraising from listed companies, launches its platform in France; With this partnership, Euronext strengthens its commitment to promote individual investors’ access to capital markets and to broaden the financing options available to companies listed on its markets; Individual investors directly hold 12% of shares listed in France and this trend has been on the rise since the health crisis; PrimaryBid allows French companies to easily access this important source of capital; The launch of PrimaryBid in France marks the start of its European expansion
PrimaryBid, the FinTech allowing individual investors to access fundraisers listed companies, announces the launch of its service in France on Tuesday 1st June in partnership with Euronext, the first market infrastructure pan-European. PrimaryBid received approval from the French Prudential Control and Resolution Authority (ACPR) in December 2020.
/jlne.ws/3fYxETY

Amendment to the “Product Specific Supplement” for options on ETFs
Eurex
The Management Board of Eurex Deutschland and the Executive Board of Eurex Frankfurt AG took the following decision with effect from 1 July 2021:
/jlne.ws/3fSQThq

Deutsche Börse completes acquisition of remaining shares in Clearstream Fund Center
Deutsche Börse
Deutsche Börse becomes the sole owner of Clearstream Fund Center AG; This means that the platform will be completely transferred from UBS to Deutsche Börse, which has integrated it into its post-trade service provider Clearstream.
On June 1, Deutsche Börse completed the takeover of the remaining 49% of the shares in Clearstream Fund Center from UBS and is therefore the sole owner of the Zurich-based fund distribution platform.
/jlne.ws/3yNXUsR

Spot market sales statistics for May
Deutsche Börse Cash Market
A trading volume of EUR 157.6 billion was achieved on Deutsche Börse’s cash markets in May (previous year: EUR 159.8 billion). Of this, Xetra accounted for 128.1 billion euros (previous year: 135.4 billion euros), bringing the average daily Xetra turnover to 6.4 billion euros (previous year: 6.8 billion euros). Turnover on the Frankfurt Stock Exchange was EUR 4.3 billion (previous year: EUR 4.0 billion) and on the Tradegate Exchange EUR 25.2 billion (previous year: EUR 20.4 billion).
/jlne.ws/3iftTvQ

Hkex Charity Partnership Programme 2021 Opens For Applications
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is pleased, effective today (Tuesday), to welcome applications for the HKEX Charity Partnership Programme (Programme) 2021, HKEX Foundation’s flagship charitable programme.
/jlne.ws/3wMPP5B

HKEX Welcomes First ETF Cross-listings In Hong Kong And Shanghai
HKEX
First ETF listings in Hong Kong and Shanghai under Hong Kong-Mainland ETF Cross-listing Scheme; Hong Kong-listed ETF AUM continues to grow, standing at over $400 billion as at 28 May 2021
Hong Kong Exchanges and Clearing Limited (HKEX) is today (Tuesday) pleased to welcome the first Exchange Traded Funds (ETFs) listings in Hong Kong and Shanghai under the new Hong Kong-Mainland ETF Cross-listing Scheme announced in 2020.
/jlne.ws/3i97pww

ASIFMA ESG and Sustainable Finance Week Keynote Speech by SGX CEO Loh Boon Chye
SGX
A very good morning to everyone! All of us are joining this conference because we believe that sustainability is a critical global agenda. In the World Economic Forum’s Global Risk Report, environmental risks remain the top threats by likelihood and impact, besides infectious diseases.
/jlne.ws/3wIel7S

SGX appoints new Head of Global Sales and Origination
SGX
Singapore Exchange (SGX) today announced the appointment of Mr Pol de Win as Senior Managing Director, Head of Global Sales and Origination (GSO), effective 1 July 2021. Mr de Win will succeed the current Head of GSO, Mr Chew Sutat who will be retiring from the company on 31 July 2021.
/jlne.ws/3c3UVTh

Trading Overview in May 2021; Japan Exchange Group released Trading Overview in May 2021.
JPX
Cash Equity Market – In May 2021, the daily average trading value for the TSE 1st Section (domestic common stocks) was JPY 3.2802 trillion, the daily average trading value for the ETF market was JPY 276.5 billion.
Derivatives Marke – In May 2021, total derivatives trading volume was 25,253,063 contracts.; In May 2021, total derivatives trading value was JPY 176 trillion.
/jlne.ws/2TBQyIR

Status of Acquisition of Own Shares
JPX
(Acquisition of Own Shares based on Provisions of the Articles of Incorporation Pursuant to Article 459, Paragraph 1 of the Companies Act)
Japan Exchange Group, Inc. hereby announces the status of matters regarding acquisition of own shares pursuant to the provisions of its Articles of Incorporation and Article 459, Paragraph 1 of the Companies Act, which was resolved at its Board of Directors meeting held on April 28, 2021, as follows.
/jlne.ws/3c3VXP9

Fintech

Oats retirement imminent as Cat maintains data quality, Finra says; Oats reporting could be fully migrated to the Consolidated Audit Trail and the Oats system retired as early as June 30.
Max Bowie – Water Technology
The Financial Industry Regulatory Authority has signaled that it may be ready to announce a retirement date for its Order Audit Trail System (Oats), which is being phased out in favor of the Securities and Exchange Commission-mandated Consolidated Audit Trail (Cat).
/bit.ly/3vxEhTx

The Fintech Express Is Leaving Women Behind; Technology hasn’t closed the gender gaps in wealth and financial inclusion.
Elisa Martinuzzi – Bloomberg
Technology was supposed to broaden access to financial services and help eliminate economic inequalities. But so far the explosion of banking and investment apps has failed to narrow one persistent divide: the gender gap in financial inclusion. Policy makers should take note. In the post-pandemic recovery, they cannot entrust the market forces of fintech to support female economic empowerment.
/jlne.ws/3uH1DVH

EQT Asks ‘Motherbrain’ AI Tool to Find More Female Founders
Ivan Levingston – Bloomberg
‘The goal is that you don’t need a computer program’: Vev CEO; EQT also looking to use AI to find racially diverse founders
Swedish investment firm EQT AB is using its artificial intelligence-based deal sourcing tool, Motherbrain, to boost funding for more diverse startup teams. Last year, EQT tweaked Motherbrain’s algorithms to prioritize companies with a female founder, and now screens twice as many of these businesses each week, according to partner Henrik Landgren.
/jlne.ws/3fGegw5

EY Europe revamp has partners worried over Wirecard damage
Accountancy firm prepares to combine businesses, prompting concern over profit and liability sharing
Michael O’Dwyer and Olaf Storbeck – FT
Accountancy group EY is to centralise power in a new European executive team, pooling resources across the region but raising concern that any financial hit from the Wirecard scandal might also be shared.
/jlne.ws/34yo98r

Broadridge appoints head of Asia-Pacific to support expansion following Itiviti acquisition; New Broadridge head of Asia-Pacific brings over 20 years of experience working in the region, most recently as global head of operations and business services at TD Ameritrade.
Annabel Smith – The Trade
Broadridge Financial Solutions has appointed a new head of Asia-Pacific, Ian Strudwick, to support its expansion in the region. Strudwick joins Broadridge as general manager and head of Asia-Pacific with over 20 years of experience working in the region, most recently serving for nearly three years as global head of operations and business services at TD Securities.
/jlne.ws/3wNPXlv

Goldman Sachs exec joins Validus Risk Management to head up new office; The former Goldman Sachs head of risk management strategy and execution will head up Validus’ new office in New York.
Annabel Smith – The Trade
Financial risk advisory and technology firm Validus Risk Management has appointed a former Goldman Sachs executive to head up its new location in New York.
/jlne.ws/2TBKFLL

Cybersecurity

Meat Is Latest Cyber Victim as Hackers Hit Top Supplier JBS
Marcy Nicholson, Fabiana Batista, and Sybilla Gross – Bloomberg
JBS shuts North American and Australian computer networks; Some U.S. shifts canceled for Tuesday, Facebook post shows
The world’s biggest meat supplier has become the latest casualty of a cybersecurity attack, posing a fresh threat to global food security already rattled by the Covid-19 pandemic.
/jlne.ws/34DOEtc

Operations of world’s biggest meat supplier JBS disrupted by cyber attack; Company forced to stand down thousands of workers after North American and Australian systems hit
Jamie Smyth – FT
JBS, the world’s largest meat supplier, suffered a cyber attack on its North American and Australian systems that disrupted its global operations and forced it to stand down thousands of employees.
/jlne.ws/3uCJ9Ws

Microsoft launches first Asia Pacific Public Sector Cyber Security Executive Council across seven markets in the region
Microsoft Asia Stories
Microsoft has launched the first Asia Pacific Public Sector Cyber Security Executive Council. It brings together a coalition of policy makers from government and state agencies, as well as technology and industry leaders, with the aim of building a communications channel for addressing cyber threats and sharing best practices across the participating countries.
Joining the council are 15 policy makers from Brunei, Indonesia, Korea, Malaysia, Philippines, Singapore, and Thailand, supported by cybersecurity professionals from Microsoft.
/bit.ly/3vSFQvP

Cryptocurrencies

U.S. plans cryptocurrency crackdown
Axios
U.S. financial authorities are preparing to actively regulate the $1.5 trillion cryptocurrency market amid growing concerns of a lack of oversight, the Financial Times reports. Why it matters: New efforts under the Biden administration reflect a break from the Trump-era approach, in which the administration at times encouraged cryptocurrency use within the financial system.
/jlne.ws/2SNCcnX

How the Experts Game the Cryptocurrency Industry With DeFi; With the sheer number of innovations launching left, right, and center, many would agree that the cryptocurrency industry is in the midst of a cambrian explosion of sorts, with promise and potential to be had in practically every corner. Q1 2021 hedge fund letters, conferences and more Decentralized Finance, or DeFi, is quickly emerging as […]
Jacob Wolinsky – Entrepreneur
With the sheer number of innovations launching left, right, and center, many would agree that the cryptocurrency industry is in the midst of a cambrian explosion of sorts, with promise and potential to be had in practically every corner.
/bit.ly/3fTAN7f

Here are five problems with bitcoin that will cause it to fail eventually; Bitcoin is a utopian dream
Moh Hon Meng – Livemint
The advantages that bitcoin might have will erode when fiat money becomes fully digital. I’m not saying that cryptocurrencies will fail. In fact, it is quite obvious that the future of currencies is digital and crypto is simply a particular way of operating a digital currency. I’m saying that bitcoin will fail. I have seen articles that use bitcoin and cryptocurrencies as synonyms, but that’s a mistake. There are thousands of cryptocurrencies and bitcoin is just one of them. It is the earliest one, so it is the most well-known, but I believe there are serious problems with bitcoin that will cause it to fail. Here are the top reasons.
/bit.ly/3wGIqoo

Judge Denies SEC Access to Ripple’s Legal Communications
Ryan James – Be[in]crypto
United States Magistrate Judge Sarah Netburn has denied the Securities and Exchange Commission (SEC) access to Ripple Labs legal communication. In a recent memo from the United States District Court, the memo indicates that Judge Netburn has denied the SEC access to Ripple Labs communication memos.
/jlne.ws/3uzQhCJ

Bitcoin Is Unlikely to Escape Regulation, Riksbank Governor Says
Niclas Rolander and Hanna Hoikkala – Bloomberg
Bitcoin and other cryptocurrencies are unlikely to dodge regulatory oversight as supervisory authorities respond to the sheer popularity of the phenomenon, according to the governor of Sweden’s central bank. Though monetary policy officials have voiced near universal skepticism toward Bitcoin and its rivals, cryptocurrencies have continued to build an enthusiastic following. That’s prompted some of the biggest names in finance to move in, as Wall Street banks such as Goldman Sachs Group Inc. offer trading services tied to crypto.
/jlne.ws/3vEWDSP

Puzzled by Dogecoin? The ABCs of a $90 Billion Joke
Joanna Ossinger – Bloomberg
Dogecoin may not be the funniest joke of all time, but it’s probably the one with the largest market valuation. The digital token, previously famous as the first “memecoin,” approached $90 billion in early April as retail traders embraced high-risk (and meme-friendly) opportunities fueled by the pandemic era’s exceptional economic stimulus. A year before, it had been worth $315 million, a figure that many at the time thought laughably high. No joke!
/jlne.ws/3fEtamh

Crypto Shakeout Stirs Debate on Ether’s Shot at Usurping Bitcoin
Joanna Ossinger – Bloomberg
Goldman among those flagging Ether’s longer term potential; Bitcoin suffered bigger May tumble than second-largest token
The relative resilience of Ether in May’s cryptocurrency rout has put the spotlight back on the idea that the second-largest digital token could one day overtake Bitcoin by market value.
/jlne.ws/34xWdSp

Crypto Mining Booms on Cheap, Subsidized Energy in Argentina
Scott Squires – Bloomberg
Power subsidies, FX controls help miners turn outsize profits; Canada’s Bitfarms takes notice, plans local mining operation
Bitcoin miners in Argentina are capitalizing on the inefficiencies of the country’s interventionist economy to reap outsize returns, fueled by memories of currency busts and powered by government-subsidized electricity.
/jlne.ws/3p9JK0C

Investors Cheer After RBI Clarifies Crypto Trading Isn’t Banned
Suvashree Ghosh – Bloomberg
The Reserve Bank of India’s decision to remove a 2018 rule that forbid banks from facilitating cryptocurrency trades comes as a welcome relief for a community facing push-back from traditional lenders needed to help settle these deals.
/jlne.ws/3pchrPg

Crypto Assets a Great Concern, Says Ireland’s Central Bank Enforcer
Peter Flanagan – Bloomberg
European Regulators eye rules to manage trading ‘gamification’; Regulation must be platform neutral, Ireland’s Rowland says
The rising popularity of cryptocurrencies such as bitcoin is “of great concern,” according to Derville Rowland, one of the top officials at Ireland’s central bank. “Crypto assets are quite a speculative, unregulated investment,” and people should be “really aware they could lose the whole of that investment,” the central bank’s director general for financial conduct said in an interview.
/jlne.ws/2SFoGCZ

Bitcoin ETP takes Swiss route to UK after cautious London response; Launch underscores tensions in Britain among institutional fund managers, regulators and policymakers
Philip Stafford and Laurence Fletcher – FT
London is preparing for its first listed security tracking the price of bitcoin, with a launch that uses crypto-friendly Swiss market rules to swim against a tide of regulatory scepticism about digital assets.
/jlne.ws/34yjDa8

Boerse Stuttgart Digital Exchange launches iOS and Android app for crypto trading; App provides quick mobile access to trading Bitcoin, Ethereum, Litecoin and XRP (Ripple)
Boerse Stuttgart
As Germany’s first regulated trading venue for digital assets, Boerse Stuttgart Digital Exchange (BSDEX) now also offers investors a mobile app for trading Bitcoin, Ethereum, Litecoin and XRP (Ripple). The app is now available in app stores for free to download to iOS and Android devices.
/jlne.ws/3c8xnN2

Politics

How Biden came around to the Wuhan lab-leak theory; The belief that Covid escaped a Chinese laboratory is no longer dismissed as a Trump provocation
Demetri Sevastopulo – FT
When Joe Biden ordered US intelligence last week to intensify efforts to determine the origins of Covid-19, he gave fresh life to the theory that the virus may have leaked from the Wuhan Institute of Virology.
/jlne.ws/34BkOpu

China’s wolf warriors bristle at Covid blame; A new US investigation into the origins of the pandemic raises the stakes for Beijing and Washington
Gideon Rachman – FT
The slump in relations between China and Australia sounds like a small detail in the great picture of world affairs. But this is a corner of the canvas that merits close attention. It provided an early indication of China’s extreme sensitivity to international calls for an inquiry into the origins of Covid-19.
/jlne.ws/3uH8q1D

Who will pay? Europe’s bold plan on emissions risks political blowback; Reforms would set a carbon price for the majority of companies, but member states and activists worry the poor will suffer
Mehreen Khan – FT
At the start of the year, the German government quietly launched a novel system of carbon pricing that could revolutionise who pays for the cost of polluting in Europe.
/jlne.ws/3pfVvmb

Deal brewing on US treasury bond market; Biden officials likely to seek reforms to ensure debt can be traded without overwhelming the financial system
John Dizard – FT
Sometime before the end of this year, at the intersection of Wall Street and the Washington swamp, a deal is going to have to be done about how the US government funds itself. Into the mix will be a push for reforms to ensure that a rapidly rising pile of government debt can be traded without overwhelming the financial system.
/jlne.ws/34ysfgP

Regulation

Proposed Amendments to NFA Bylaw 1301 and Interpretive Notice 9053 entitled Forex Transactions to Reduce Forex Dealer Member Assessment on Order Segment Fees Submitted to FORTRESS
NFA
/bit.ly/2RJtzeh

FINRA Statement on Temporary Withdrawal of Specialized Arbitrator Roster Rule Filing
ASIC
Following consultations with the SEC staff, we temporarily withdrew from SEC consideration our rule filing establishing specialized arbitration panels for expungement requests so that we can further consider whether modifications to the filing are appropriate.
/bit.ly/3c0DPpi

SEC Sues Cryptocurrency Promoters Over Deal That Raised $2 Billion; State Regulators in Texas Called BitConnect a ‘Massive Fraud’ in 2018
Dave Michaels – WSJ
Regulators sued a group of cryptocurrency promoters who helped raise over $2 billion from investors with the promise of 40% monthly returns, in one of the largest cases ever brought over digital assets.
/jlne.ws/3fCrKsE

SEC Charges U.S. Promoters of $2 Billion Global Crypto Lending Securities Offering
SEC
The Securities and Exchange Commission announced today that it has filed an action against five individuals alleging that they promoted a global unregistered digital asset securities offering that raised over $2 billion from retail investors.
/jlne.ws/2RU9bHs

Report finds EU regulators “inaccurately” claiming decline in on-venue equities trading; According to Oxera and the Association for Financial Markets in Europe (AFME), 83% of European equity trading takes place on venues, contrary to recently published data.
Annabel Smith – The Trade
The majority of equity trading in Europe takes place on trading venues despite recent data compiled by regulators claiming otherwise, a report by Oxera and AFME has found.
/jlne.ws/3yQzvmd

Union Standard director and former responsible manager banned from providing financial services for 10 years, disqualified from managing corporations for five years
ASIC
ASIC has banned John Carlton Martin, a director and former responsible manager of Union Standard International Group Pty Ltd (Union Standard) (in liquidation), from providing financial services for 10 years. ASIC has also disqualified Mr Martin from managing corporations for five years.
/jlne.ws/3c8rX4E

ASIC issues information sheet on activist short selling in Australia
ASIC
ASIC has today published Information Sheet 255 Activist short selling campaigns in Australia (INFO 255), considering the practice of ‘activist short selling’ in Australia and outlining ASIC’s expectations to promote market integrity during these campaigns.
/jlne.ws/3g3UM3p

ESMA publishes latest edition of its Newsletter
ESMA
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today published its latest edition of the Newsletter “Spotlight on Markets”.
/jlne.ws/3cbpzu2

ESMA publishes Final Report on the MiFIDII/MiFIR obligations on market data
ESMA
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today published its Final Report on Guidelines on the MiFIDII/MiFIR obligations on market data. The Final Report sets out guidelines on the requirements to publish market data on a reasonable commercial basis and to make market data available free of charge 15 minutes after publication.
/jlne.ws/3fYLTIr

ESMA issues a negative opinion on an Accepted Market Practice on liquidity contracts proposed by the French AMF
ESMA
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today published a negative opinion on the intended Accepted Market Practice (AMP) notified by the French Autorité des Marchés Financiers (AMF).
/jlne.ws/3wSctd5

EBA and ESMA publish provisional list of instruments and funds for the smallest investment firms under the Investment Firms Regulation
ESMA
The European Securities and Markets Authority (ESMA) together with the European Banking Authority (EBA), published today a provisional list of additional instruments and funds that competent authorities may allow to use as own funds for some of the smallest investment firms. The latter include only non-legal persons or joint-stock companies, or those which meet the conditions for qualifying as small and non-interconnected investment firms as defined in the Investment Firm Regulation (IFR). The list is provisional and intended to provide guidance to investment firms and competent authorities ahead of the application of the IFR requirements, as of 26 June 2021.
/jlne.ws/3c8ujR2

Investing and Trading

A Pressure Valve Opens for Bank Stocks; The increasing use of a Fed facility to take cash from the market isn’t a bad sign for investors in banks with strained balance sheets
Telis Demos – WSJ
Seeing a big jump in the use of a Federal Reserve facility is a reminder that we live in an unusual financial system right now. But it isn’t necessarily a bad sign for bank investors. The Fed’s overnight reverse repurchase agreement facility is absorbing historically large amounts of cash. Thursday’s uptake climbed to a record $485 billion. The way it basically works is that the Fed takes a counterparty’s cash by selling securities with an agreement to repurchase them in the future.
/on.wsj.com/3c22R7l

Unloved 60/40 Strategy Needs a Modern Makeover to Win Over Skeptics; After half a century, the venerable investment allocation formula is showing some signs of age. But that doesn’t mean retail investors need to start from scratch.
Emily Cadman – Bloomberg
The investment portfolio cocktail of 60% equities and 40% bonds has many critics — big financial institutions have lined-up to sneer at the mix for over a decade now. Investors have been urged to look at more exotic options to generate gains amid questions over the outlook for returns from bonds. Yet over the last 14 years, you would have done better by holding a 60/40 portfolio than following some other hyped-up strategies.
/jlne.ws/3fDNe8D

How AMC’s Boss Won Over the Reddit Crowd; An essential skill in the memestock era is to know how to corral individual investors. But Adam Aron is playing with fire.
Chris Bryant – Bloomberg
The boss of AMC Entertainment Holdings Inc., Adam Aron, gained an unexpected ally in his pandemic mission to keep his movie theaters afloat: a devoted army of retail investors who’d like nothing better than to inflict big losses on short-sellers betting against the debt-laden cinema chain. Redditors have helped push the shares up 1,100% since the start of the year, allowing AMC to cheaply issue gobs of new stock to help repair its finances. No wonder Aron has gone out of his way to charm the more than 3 million individual investors who now together own a majority of the company.
/jlne.ws/34AqaBd

A new economic era: is inflation coming back for good? In the first in a series, Chris Giles examines whether the extraordinary post-crisis stimulus will lead to rising prices
Chris Giles – FT
The December meeting of the Federal Reserve’s most important economic committee was routine. Policymakers agreed that the economy could cope with rising levels of spending “without any strong general upward pressure on prices”.
/jlne.ws/3vH75ZU

Wall Street’s Spac gravy train hits the buffers; Investment banking fees from US blank-cheque companies have tumbled as market has cooled
Joshua Franklin and James Fontanella-Khan – FT
The fees US banks earn from special purpose acquisition companies have plunged in the past two months, disrupting what had been a main profit generator on Wall Street.
/jlne.ws/3pa7odx

Share price ‘pop’ in US IPOs falls by half; The red-hot market of earlier this year has cooled as investors become more discerning
Aziza Kasumov and Eric Platt – FT
Investors are no longer falling over themselves to put money into US initial public offerings, reducing the chances that a company will be able to price their shares above expectations or enjoy a big share price “pop” on their first day of trading.
/jlne.ws/3fCh5y0

UK pension schemes wary of push for ‘illiquid’ investments; Managers fear government proposal will see savers lose money through higher fees
Josephine Cumbo – FT
UK government efforts to encourage pensions funds to invest more in infrastructure, venture capital and private equity are at risk of failing because scheme managers fear the move will leave retirement savers worse off.
/jlne.ws/3p6KHqy

The Wall Street Players Who Worry Inflation Heralds Wild Markets; Investors bet that a coming surge of inflation will change 30 years of market behavior
Paul J. Davies – WSJ
Some investors are preparing for wild swings in financial markets, worried that inflation, and the Federal Reserve’s pledge to let it rise, will lead to a more volatile world. The reason: The economic policies aiming to create inflation now are the opposite of the ones that kept markets relatively stable for decades.
/jlne.ws/3fEgTOV

Environmental, Social and Corporate Governance

Exxon May Be Corporate America’s Canary in the Coal Mine; Last week’s boardroom shakeup may be just the beginning when it comes to investor climate activism.
Tim Quinson – Bloomberg
Last week’s shakeup of Exxon Mobil Corp.’s board of directors is by most accounts a clear signal to corporate America that ambivalence and greenwashing will no longer be enough when it comes to addressing the climate crisis.
/jlne.ws/34F6FY0

European Banks’ Next Big Problem? The CO2 in Their Loan Books
Marion Halftermeyer, Nicholas Comfort and Demetrios Pogkas – Bloomberg
European banks spent almost a decade claiming they’re part of the fight against climate change. Now, investors and regulators want them to prove it. For the first time, many banks are publishing relevant data this year on criteria such as lending to fossil fuel industries, as Europe’s central banks scrutinize their loan books and threaten higher capital requirements for those with excessive climate risks.
/jlne.ws/3fAwvD0

Green Treasuries Are a Missing Link in Biden’s Big Budget Plans
John Ainger and Liz McCormick – Bloomberg
U.S. has lagged European governments in green bond boom; Any issuance would be a way off as Treasury is slow to change
Joe Biden wants to spend his way to a greener and more sustainable future for America. For now though, he’ll probably be financing it the old-fashioned way — with taxes and traditional bonds.
/jlne.ws/34yk4B9

Cutting Down Trees Can Help Save Climate in Forest Industry Math
Jesper Starn – Bloomberg
Study shows harvesting has positive effect on climate; Report follows intense debate about forests as carbon sinks
Sweden’s forest industry has prepared a defense against critics who say trees should be left in the forest to bind carbon and help fight climate change.
/jlne.ws/34CZJe1

Cargill Backs Cow Masks to Trap Methane Burps; Food giant Cargill will start selling experimental wearable technology for cows as the cattle and dairy industries pivot to cut greenhouse gas emissions.
Agnieszka de Sousa – Bloomberg
Agriculture giant Cargill Inc. will start selling methane-absorbing wearable devices for cows, putting its support behind an experimental technology that could help the industry cut greenhouse gas emissions.
/jlne.ws/3vGbbSc

Climate summit jamborees could use a good clean-up; Activism and political theatre have their place but not necessarily at the annual COP event
Leslie Hook – FT
In the world of climate change, one summit rules them all: the COP. The annual UN meeting, or “Conference of the Parties” to the Convention on Climate Change, is unlike any other.
/jlne.ws/3uzzEr3

Corporate-led $1bn forests scheme is ‘just the beginning’; Likes of Brazil and Indonesia to be paid for carbon credits linked to avoidance of tree clearance
Chelsea Bruce-Lockhart and Steven Bernard – FT
Amazon, Boston Consulting, McKinsey, Unilever, Salesforce, Airbnb, GSK, and Nestlé in April threw their weight behind a $1bn scheme aimed at tackling deforestation that now faces the challenge of establishing which countries will receive funds.
/jlne.ws/3yRAoLf

US gas export projects pursue emissions cuts to assuage foreign buyers; New LNG facilities are investing in costly mitigation measures as countries clamp down on carbon
Justin Jacobs – FT
America’s liquefied natural gas exporters are unveiling efforts to slash carbon emissions from new facilities as they look to keep new multibillion-dollar projects on track amid mounting climate pressures.
/jlne.ws/3uz9NiQ

Europe’s steel industry warns over abrupt end to free carbon permits; European Commission urged to ensure level playing field for domestic producers
Sylvia Pfeifer and Mehreen Khan – FT
Europe’s steel industry has stepped up its pleas to the European Commission to ensure a level playing field for domestic producers as Brussels prepares to publish plans for a carbon border tax.
/jlne.ws/3vKLcZO

Institutions

Credit Suisse compliance chief was warned about Gupta; Thomas Grotzer promoted despite being one of several staff to whom concerns had been raised
Owen Walker – FT
Credit Suisse’s new global head of compliance was one of several staff who received internal warnings about dealing with Sanjeev Gupta before the bank invested $1.2bn of client funds in the industrialist’s businesses, according to people with knowledge of the discussions.
/on.ft.com/3i4XPLd

BGC names two UK staff behind alleged $35m fraud; US group identifies 18 English properties it claims may have been funded by five-year scheme
Kadhim Shubber and Philip Stafford – FT
BGC Partners has identified luxury jewellery and 18 English properties it claims may have been funded by an alleged $35m fraud perpetrated by two of its UK employees.
/on.ft.com/3yTRyZ1

Industry believes there is light at the end of the tunnel for investors trapped in Woodford fund; Woodford inquiry will not report this year
The Financial Conduct Authority’s ongoing investigation into the collapse of the Woodford Equity Income fund has been slow but investors stuck in a limbo might be closer to getting answers, according to industry experts. In a letter to MPs, the regulator’s chief executive, Nikhil Rathi, said officials have spoken to 14 witnesses and all key interviews are now complete.
/bit.ly/3wIRGIy

West Virginia Gov. Jim Justice Is Personally Liable for $700 Million in Greensill Loans; His personal guarantee of the loans, which hasn’t been reported, puts financial pressure on the popular Republican governor
Julie Steinberg and Duncan Mavin – WSJ
West Virginia Gov. Jim Justice is personally on the hook for nearly $700 million in loans his coal companies took out from now-defunct Greensill Capital, according to people familiar with the loans and documents described to The Wall Street Journal.
/jlne.ws/34DhcmB

Tradovate to Offer New FairX Futures Commission-Free
Online Brokerage Continues to Bring Innovation to Futures by Offering “No-Fees” Approach, with Commission-Free Trading of New FairX Futures
Press Release
Tradovate, LLC, a leading online brokerage firm for active, self-directed futures traders, announced today that it will be one of the first brokers to offer futures trading on FairX from day one when the new exchange launches this month. Tradovate is also the first firm to announce commission-free trades for FairX market participants.
/prn.to/3uGLaRc

Regions

China Is Digging Deep Into Its Currency Toolkit to Manage Yuan
Tian Chen and Sofia Horta e Costa – Bloomberg
Central bank took its first concrete action in months Monday; Potential measures may involve derivatives, capital outflows
As China’s central bank pulls back from direct intervention in its currency market, officials are reverting to old tools to manage the yuan. The People’s Bank of China on Monday said the country’s lenders will need to hold more foreign currencies in reserve, a move that will reduce the supply of the dollar onshore. Officials have pulled on multiple levers to influence the yuan since October, when China cut the cost of shorting the currency to zero and removed a key factor used by banks to calculate the daily reference rate. The government has also relaxed capital curbs to allow more outflows and asked financial institutions to limit their offshore financing.
/jlne.ws/3vFY3MV

How Swiss asset managers opened their doors to Lex Greensill; Adviser David Solo played key role as GAM and Credit Suisse funded group’s expansion
Owen Walker and Harriet Agnew – FT
In late 2014, David Solo lent A$12.2m to a little-known supply-chain finance group with eye-catching claims. Greensill Capital, which was trying to muscle in on a corner of finance dominated for decades by banks, vowed to make “finance fairer” and declared that it would be “democratising capital”.
/jlne.ws/3vJbxHy

Miscellaneous

Keeping fairness at the heart of big business; Luiza Trajano has built one of Brazil’s largest retail groups and championed women’s rights and racial equality
Michael Stott – FT
When Brazil’s most famous businesswoman stumbled and fell in front of the cameras while carrying the Olympic torch through her home town ahead of the 2016 Rio Games, shoppers across the country had reason to cheer.
/jlne.ws/34BWHqs

Vatican Revises Church Law in Wake of Sex Abuse, Financial Scandals; Updates to Catholic Church’s penal code also include laws against ordination of women, recording of confessions
Francis X. Rocca – WSJ
ROME—The Vatican on Tuesday unveiled an updated version of the Catholic Church’s penal code to reflect scandals over clerical sex abuse and financial corruption that have shaken the church in recent years, expanding the types of offenses as well as potential culprits and victims.
/jlne.ws/34B2Z9P

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First Read $46,041/$300,000 (15.3%) ++++ Small Exchange Scores a First With Cannabis Futures Contract By Suzanne Cosgrove - John Lothian News The Small Exchange is known for its bite-size futures products aimed at retail customers, including the Small U.S. Dollar,...

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