Patrick Kenny and Paul Nockels
Hits & Takes
There were two very interesting donations to the JLN MarketsWiki Education GoFundMe campaign. The Most Interesting Man in the World, Pat Kenny of CQG, donated, as did RSM’s Most Interesting Accountant Paul Nockels. Pat Kenny is this year’s chairman of the LaSalle Street Trading Tech Awards event. Paul Nockels is a leader in the RSM financial services group, the firm that does my corporate accounting. Thank you to both Pat and Paul and all who have given and all who have yet to give. Support our efforts to preserve industry history by donating to our GoFundMe campaign.
The generous and gracious people at FIA have offered me 10 free FIA EXPO-V passes to distribute to readers who are interested in attending this year’s virtual EXPO. Email me at email@example.com if you would like one.
SGX reports: “We successfully completed the Final Liquidity Switch on 2 November 2020, with more than US$1 billion of positions in the SGX MSCI Taiwan Index Futures seamlessly migrated to the SGX FTSE Taiwan Index Futures.”
Christopher Giancarlo and Daniel Gorfine have an opinion piece published in MarketWatch titled “The future of money should be cashless — with a digital dollar giving faster, easier and cheaper access to your savings.”
Trading Technology Chief Marketing Officer Brian Mehta‘s latest blog post is titled “Listen Up; With everything going on…let’s not forget about Diversity, Equity and Inclusion.
NFA is seeking compliance examiners to join their compliance and OTC derivatives teams in Chicago and NewYork. Learn more HERE.
Look for some significant election news today. Stay calm. Stay safe.
MarketsWiki went over 192 million page views. It is jumping closer and closer to 200 million page views.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
Nasdaq Chief Economist Phil Mackintosh’s latest column is “What Options Tell Us About Stock Splits,” about options trading in high priced stocks and the AAPL and TSLA stock splits. You can read it here. ~SR
The Spread: Stocks rise and snow falls
NFA orders Chicago, Ill. introducing broker Infinity Futures LLC to pay a $120,000 fine
NFA has ordered Infinity Futures LLC (Infinity Futures), an NFA Member introducing broker located in Chicago, Ill., to pay a $120,000 fine. Infinity Futures is a wholly-owned subsidiary of York Business Associates LLC (York), an NFA Member futures commission merchant located in Deer Park, Ill., and introduces substantially all of its business to York. NFA also ordered Infinity Futures’ associated person (AP) Patrick Zielbauer to pay a $20,000 fine. Finally, NFA ordered Infinity Futures to continue to record all of Zielbauer’s communications for three years.
*****Infinity should be investigated to infinity and beyond!~JJL
World’s Hunger Problem Means Some Nations Risk Famine, UN Says
Agnieszka de Sousa – Bloomberg
Famine may affect Burkina Faso, Nigeria, South Sudan, Yemen; Conflict, Covid-19 and climate woes threaten food security: UN
The world’s hunger problem is worsening and some nations in Africa and the Middle East could soon slip into famine as conflict, economic hardship, weather extremes and the Covid-19 crisis limit access to food. That’s the warning from the United Nations, which said areas of Burkina Faso, northeastern Nigeria, South Sudan and Yemen face famine if conflict escalates and humanitarian access is further cut in the coming months. Food insecurity is rising globally and another 16 countries are at high risk of more acute hunger, the UN’s Food and Agriculture Organization and the World Food Programme said.
*****Here is an issue we should be focused on. Hunger is all around the world, but also in our own communities. But famine takes it to another level.~JJL
Thursday’s Top Three
Our top story Thursday was The Financial Times’s Japan’s ethical capitalism has lessons for the world on ESG, an opinion piece from the joint head of Asia Pacific equity research at Nomura. Second was CFTC Approves Eris Clearing, LLC to Clear Fully-Collateralized Swaps, from the CFTC. Third was another CFTC press release, CFTC Designates KalshiEX LLC as a Contract Market.
192,000,105 pages viewed; 24,513 pages; 226,659 edits
|CryptoMarketsWiki, our archive of the cryptocurrency and blockchain world, is going strong and keeping pace as this area of finance grows and evolves.Recently Updated Pages
1,468 pages; 13,022 edits
LSE and Refinitiv make commitments on trading to secure EU approval for deal; London Stock Exchange also offers to strengthen governance and oversight
Philip Stafford and Javier Espinoza – FT
The London Stock Exchange and Refinitiv have made commitments to Brussels antitrust authorities to keep trading and clearing of interest rate derivatives separate, according to documents seen by the Financial Times, in an effort to satisfy one of the regulator’s key concerns with their $27bn deal.
Traders Settle Case Tied to Hack of SEC’s Corporate Database; Court fight ends with regulatory fines, but traders didn’t face criminal charges
Dave Michaels – WSJ
Two men accused of trading on information hacked from a government database will pay $425,000 to settle regulatory claims, a fraction of the illegal profits they were alleged to have earned. The outcome is more evidence that the effort to punish those responsible for the 2016 hack—which embarrassed the Securities and Exchange Commission, from which the data was stolen—is winding down without dire consequences for the accused. The alleged hackers, who live in Ukraine, remain free. The State Department recently offered $1 million for tips leading to their individual arrests.
Industry associations renew calls for EU tape after major study; EFAMA and EFSA have said a consolidated tape would not help with issues relating to market data costs as they back recent study from Market Structure Partners.
Annabel Smith – The Trade
Banks and asset managers in Europe have renewed calls that a consolidated tape be established after an in-depth study backed by the European Commission urged that plans move forward. A statement from the European Fund and Asset Management Association (EFAMA) and the European Forum of Securities Associations (EFSA), in response to the October report from Market Structure Partners, reviewing the challenges and benefits in establishing a tape in Europe, said the infrastructure would democratise data access across European markets.
Busting Up the World’s Biggest IPO Could Cost China; Fintech companies like Jack Ma’s Ant need to be regulated, but if Beijing’s motives look questionable, the economy will suffer.
Editorial Board – Bloomberg
Some see China’s shock decision this week to quash the world’s biggest initial public offering as a simple case of authoritarian overreach — Communist functionaries slapping down an entrepreneur who’d grown too big for his boots. It’s a bit more complicated. President Xi Jinping and billionaire Jack Ma, founder of the fintech company Ant Group Co., should both draw lessons from this unfortunate collision.
Justice Department Seizes $1 Billion of Bitcoin Tied to Silk Road Website; Agency says a hacker stole funds in 2012, 2013 from drug website, left untouched for years
Paul Vigna – WSJ
U.S. Department of Justice officials seized more than $1 billion of bitcoins and other digital currencies this week that had been associated with the Silk Road online drug bazaar, the largest seizure of cryptocurrency in the agency’s history. The 69,000 seized bitcoins once belonged to Silk Road founder Ross Ulbricht, the Justice Department said in a statement Thursday. Mr. Ulbricht was convicted in 2015 of distributing narcotics and money laundering and sentenced to life in prison.
City of London suffers crushing blow from second lockdown; Restrictions kill off signs of life at offices and pubs in run-up to Christmas
Daniel Thomas and Stephen Morris – FT
When Britain’s oldest brewer closed the doors of its 15 City of London pubs after a last hurrah for drinkers on Wednesday night, most of the landlords had no idea when they would open again.
World’s Negative-Yield Debt Pile Has Just Hit a New Record
Cormac Mullen and John Ainger – Bloomberg
$17 trillion of investment-grade debt now has sub-zero rates; U.K. and Australian central banks expand bond-buying programs
The world’s stockpile of negative-yielding debt has swelled to a record in the wake of the U.S. election, as investors lower expectations for a fiscal splurge and turn their focus back to monetary support. The market value of the Bloomberg Barclays Global Negative Yielding Debt Index rose to $17.05 trillion on Thursday, the highest level ever recorded and narrowly eclipsing the $17.04 trillion it reached in August 2019.
In a Market Powered by Tech Stocks, Cathie Wood Is a Big Winner; With help from Tesla, the money manager could be the first star of exchange-traded funds.
Claire Ballentine – Bloomberg
The tech sector is having a blistering rally this year, and Cathie Wood has been one of the biggest beneficiaries. The head of Ark Investment Management has made a name for herself as a skilled, stock-picking fund manager at a time when almost nobody gets famous that way anymore. Moreover, she’s done so while managing exchange-traded funds. The vast majority of ETFs passively track indexes of stocks. Ark offers five actively managed U.S. ETFs, and Wood runs all of them.
Gamblers Outside the U.S. Take Presidential Odds on a Wild Ride; Betting on the election is not legal in the United States. But elsewhere, the odds swung wildly between President Trump and Joe Biden as bettors tried to stay a step ahead of prognosticators.
Victor Mather – NY Times
While voters throughout the country were glued to their TVs and reflexively refreshing news and political sites on Tuesday night, a few of the cannier ones were paying more attention to something else. The betting odds.
Georgia runoff gives new life to U.S. Senate bid of pastor of Martin Luther King’s church
Rich McKay, Susan Cornwell – Reuters
The pastor who now holds the pulpit where slain civil rights leader Martin Luther King Jr. once preached was thrust into the national spotlight this week when Georgia officials ruled his U.S. Senate campaign would be decided by a January runoff.
Jack Ma Had It Right About One Thing; Fintech isn’t the biggest risk to a creaking financial system. It’s part of the solution.
Anjani Trivedi – Bloomberg
Jack Ma was right: You can’t use rules for a railway station to run an airport. Or, regulate a cutting-edge online lending platform like a traditional bank. Chinese authorities effectively took the founder of e-commerce behemoth Alibaba Group Holding Ltd. to task for such views by suspending the $35 billion initial public offering of its fintech offspring, Ant Group Co., just before the scheduled launch. The move follows the release of new draft regulations on increasingly popular online consumer lending that will squeeze profits and raise the cost of compliance for fintech pioneers.
Pope shakes up running of Vatican funds after London property scandal
Philip Pullella – Reuters
Pope Francis has stripped the Vatican’s Secretariat of State of control over its own funds, moving them to the supervision of its economic offices in an attempt to contain the fallout of a scandal over a luxury London property deal.
U.S. coronavirus cases climb by record for second day in a row, up over 120,000
Lisa Shumaker, Anurag Maan – Reuters
Coronavirus cases in the United States surged by at least 120,276 on Thursday, according to a Reuters tally, the second consecutive daily record rise as the outbreak spreads in every region.
Covid-19 Live Updates: U.S. Hits a Record 121,000 Daily Cases
The coronavirus is leaving its mark on daily life across the country, with the number of new infections climbing in nearly every state.
UK statistics watchdog warns over government use of Covid data; PM insists government has tried to make information on pandemic ‘as clear as possible’
Jasmine Cameron-Chileshe and George Parker – FT
Boris Johnson on Thursday defended the government’s use of data during the coronavirus pandemic after the UK’s official statistics watchdog warned that without clearer and more accessible information the public could lose confidence in figures put forward by government advisers.
Sewage Tests Show Virus Cases Rise in South Africa
Monique Vanek – Bloomberg
Scientists began country’s most comprehensive study in July; Government warned last month Covid-19 cases are increasing
South African scientists monitoring wastewater in the Western Cape province detected spikes of the coronavirus in the last three weeks as concerns grow among the government that a lack of compliance with health guidelines may trigger a second wave.
Russia Breaks 20,000 New Covid-19 Cases as Hospitals Strain
Jake Rudnitsky – Bloomberg
Russia reported a record 20,582 coronavirus cases in last day; At least 16 Russian regions facing ‘critical’ lack of beds
Russia for the first time reported more than 20,000 Covid-19 cases in the last day as a surge in some regions is overwhelming local hospitals’ ability to care for patients. There were 20,582 new Coronavirus infections in the last day, with two-thirds of them outside of Moscow, the government’s virus response center said Friday. Russia has reported 1,733,440 total cases, the fourth-most globally.
Children Produce Weaker Coronavirus Antibodies, Study Finds; The research suggests that children clear the infection much faster than adults and may help explain why many don’t become seriously ill.
Apoorva Mandavilli – NY Times
Children infected with the coronavirus produce weaker antibodies and fewer types of them than adults do, suggesting they clear their infection much faster, according to a new study published Thursday.
Exchanges, OTC and Clearing
Euronext publishes Q3 2020 results; SOLID THIRD QUARTER 2020 DEMONSTRATING CONTINUED BENEFITS FROM DIVERSIFICATION AND RESILIENT CORE BUSINESS
Euronext, the leading pan-European market infrastructure, today announced its results for the third quarter of 2020.
CME Group Declares Quarterly Dividend
CHICAGO, Nov. 5, 2020 /PRNewswire/ — CME Group Inc., the world’s leading and most diverse derivatives marketplace, today declared a fourth-quarter dividend of $0.85 per share, payable December 29, 2020, to shareholders of record as of December 10, 2020.
DerivSource: Post-Brexit Euro Clearing – Outlook on the Next 18 Months and Beyond
Despite the European Commission’s best efforts, some 90% of euro-denominated clearing volumes still take place in the UK. The European Commission recently conferred a time-limited third country equivalence to UK CCPs, leaving open the option to force firms to shift clearing volumes to the continent when that equivalence expires. In a recent webcast, panellists from BNP Paribas, Deutsche Bundesbank, Deutsche Börse, Eurex and BMO Global Asset Management discussed the ongoing shift to euro-centric clearing and the regulatory and operational challenges and opportunities it presents.
Extension of trading hours for additional selected benchmark futures
1. Introduction. Eurex Deutschland is planning to extend its trading hours for additional selected Equity and Volatility Index Futures and Fixed Income Futures as of 7 December 2020.
Intercontinental Exchange Announces Pricing of Secondary Offering of Common Stock
Intercontinental Exchange (NYSE: ICE), a leading operator of global exchanges and clearing houses and provider of mortgage technology, data and listings services, announced today the pricing of an underwritten secondary offering by Cyprus Parent, LP, an entity controlled by Thoma Bravo and formerly known as Ellie Mae Parent, LP (the “selling stockholder”), of 9,180,569 shares of ICE’s common stock at a price to the public of $98.00 per share. Morgan Stanley & Co. LLC served as the sole underwriter for the offering. The offering is expected to close on or about November 9, 2020, subject to satisfaction of customary closing conditions.
Performance Bond Requirements: Agriculture, Energy, Equity, Interest Rate & Metal Margins – Effective November 06, 2020
As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago Mercantile Exchange Inc., Clearing House Risk Management staff approved the performance bond requirements for the following products listed in the advisory at the link below. Please email any questions to Clearing.RiskManagement@cmegroup.com
Initial Listing of the Pork Cutout Futures and Options on Pork Cutout Futures Contracts
(SER 8679 supersedes SER 8651 dated September 29, 2020 and is being issued to delete erroneous references regarding Trading at Settlement (“TAS”) eligibility of the Pork Cutout Futures contract. For the avoidance of doubt, the Contracts will not be TAS eligible. No other changes have been made to the original SER.) Effective Sunday, November 8, 2020 for trade date Monday, November 9, 2020, and pending all relevant CFTC regulatory review periods, Chicago Mercantile Exchange Inc. (“CME” or “Exchange”) will list the Pork Cutout Futures and Options on Pork Cutout Futures contracts (the “Contracts”) for trading on the CME Globex electronic trading platform (“CME Globex”) and for submission for clearing via CME ClearPort.
Amendments to the CME and NYMEX Position Limits, Position Accountability, and Reportable Level Table of the CME USD Malaysian Crude Palm Oil Calendar Futures, USD Malaysian Crude Palm Oil Average Price Option, Bursa Malaysia Crude Palm Oil – Gasoil Spread Futures and the NYMEX European Low Sulfur Gasoil Financial Futures Contracts – Temporary Suspension of Trading and Clearing of the Affected Contract Months of the CME Contracts
CME Group Effective on Monday, November 23, 2020, and pending all relevant CFTC regulatory review periods, Chicago Mercantile Exchange Inc. (“CME”) and New York Mercantile Exchange, Inc. (“NYMEX”) (collectively, the “Exchanges”) are certifying to the Commodity Futures Trading Commission (“CFTC” or “Commission”) amendments to the Position Limits, Position Accountability, and Accountability table (the “Table”) of the USD Malaysian Crude Palm Oil Calendar Futures, USD Malaysian Crude Palm Oil Average Price Option and Bursa Malaysia Crude Palm Oil – Gas Oil Spread Futures contracts (the “CME Contracts”) commencing with the January 2022 contract month and beyond.
Performance Bond Requirements: Energy Margins – Effective November 06, 2020
As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago Mercantile Exchange Inc., Clearing House Risk Management staff approved the performance bond requirements for the following products listed in the advisory at the link below.
Product Modification Summary: Increase of the Minimum Price Fluctuation of the Palladium Futures and Micro Palladium Futures Contracts – Effective December 7, 2020
Effective Sunday, December 6, 2020 for trade date Monday, December 7, 2020, and pending all relevant CFTC regulatory review periods, please be advised that the New York Mercantile Exchange, Inc. (NYMEX or EXCHANGE) will amend the minimum price increment for Palladium Futures and Micro Palladium Futures. The outright minimum trade tick is changing from 0.10 to 0.50.
2nd REVISION: New Product Summary: Initial Listing of the Pork Cutout Futures and Options on Pork Cutout Futures Contracts
Effective Dates for Spot Month Position Limits in the December 2020 Core Products
CME Globex Notices: November 2, 2020
Critical System Updates
iLink 2 on MSGW Decommission – February 26, 2021
Update on Order Routing and Front-End Audit Trail Requirements for iLink 3
iLink Enhancements for Location ID and Displayed Quantity – November 15
New – Removal of Korea Exchange (KRX) Markets on CME Globex – December 18 NEW
iLink 3 SBE Schema Update – January 24, 2021
Phase 1 CME FX Link Enhancements – February 21, 2021
Phase 1 CME FX Link Enhancements: Drop Copy Impact – February 21, 2021
CME STP Notices: November 5, 2020
BrokerTec Stream on CME STP – December 7
Update – CME STP Support of BrokerTec Markets – November 16 UPDATE
New – Changes to Time Unit of the Original Trade for Weekly Options – December 2020 NEW
CME STP FIXML API Connectivity Documentation
CME Reference Data API Notices: November 5, 2020
About publication of materials of Specialist Working Group for Recurrence Prevention Measures (1st meeting)
Today, Specialist Working Group for Recurrence Prevention Measures (1st meeting) was held and post the materials of this Working Group. Also, outline of minutes of this Council will be published as soon as it is ready.
EEX Group Monthly Report – October 2020
With Ant’s IPO on hold, China emphasizes need for fintech regulation
Evelyn Cheng – CNBC
Just days after the abrupt suspension of Ant Group’s IPO — which was set to be the world’s largest offering — China’s financial authorities emphasized the need to ensure sufficient regulation.
But they did not discourage entities from working with Ant — an Alibaba-affiliate which runs one of the two major mobile payments systems in the country, Alipay, and operates many subsidiaries for tech-driven business lending and personal investment. Ant also has many partnerships with major banks and financial institutions.
Switzerland launches Green Fintech Network
Switzerland is setting up a Green Fintech Network to help the country take advantage of the “great opportunity” presented by sustainable finance.
Fintech innovators duck government regulators
Felix Salmon – Axios
Unregulated unicorns — think Chime, worth $14.5 billion, or Plaid, worth $5.3 billion if its acquisition by Visa is allowed to go through — are transforming the world of financial services.
Why it matters: Fast-growing startups generally try very hard to avoid regulation. As they become increasingly important, they collectively represent a growing blind spot for regulators.
Which Fintech Payment Stock Will Grow The Most By 2025?
Henry Khederian – Yahoo Finance
Every week, Benzinga conducts a sentiment survey to find out what traders are most excited about, interested in or thinking about as they manage and build their personal portfolios.
We recently asked over 400 Benzinga investors and traders which fintech payment stock they believe has the most room to grow between now and 2025.
Kaizen Reporting Wins ‘Best Compliance Product – Regulatory Reporting’ At Buy-Side Technology Awards
Leading regulatory reporting firm Kaizen Reporting (Kaizen), has won ‘Best Compliance Product – Regulatory Reporting’ at the Buy-Side Technology Awards for its ReportShield™ Accuracy Testing service.
Justice Department seizes $1 billion in recently moved Silk Road crypto
Kollen Post – CoinTelegraph
In a filing on Thursday, the United States Department of Justice asked to seize $1 billion from an unnamed hacker.
Specifically, the DoJ is asking the court of the Northern District of California to lock down on “approximately 69,370.22491543 Bitcoin (BTC), Bitcoin Gold (BTG), Bitcoin SV (BSV), Bitcoin Cash (BCH), obtained from 1HQ3Go3ggs8pFnXuHVHRytPCq5fGG8Hbh.”
Brazilian gov’t gets help from US Justice Department to seize $24M in crypto
Turner Wright – CoinTelegraph
According to a Wednesday filing, the U.S. Justice Department seized $24 million in virtual currency pursuant to an official request from the Brazilian government.
The Department of Justice, or DoJ, said that the government of Brazil requested its assistance in connection to a crypto fraud scheme called “Operation Egypto.” Authorities in the South American nation reported that more than 10,000 Brazilians may have been defrauded from the scheme, in losses estimated at roughly $200 million.
Bitcoin Surge Widens Crypto’s Lead Over Gold as Top Asset of 2020
Eric Lam – Bloomberg
Bloomberg Galaxy Crypto Index has more than doubled this year; Recent rally spurred by Bitcoin jump amid a tumble in dollar
Bitcoin’s surge during U.S. election week has pulled cryptocurrency performance further ahead of major asset classes this year. The Bloomberg Galaxy Crypto Index of digital currencies, including Bitcoin, is up about 120% in 2020, exceeding gold’s near 30% jump. The crypto index has rallied some 11% during a three-day streak since election day, a period when the dollar fell to a 2018 low.
Swiss Freeze More Than $1 Billion Held by Tech Mogul Robert Brockman
Hugo Miller – Bloomberg
Brockman indicted last month for tax-evasion, money laundering; Multiple accounts held at Geneva-based Mirabaud: indictment
Swiss prosecutors froze more than $1 billion held in bank accounts belonging to Houston software tycoon Robert Brockman, who’s wanted by the U.S. for alleged tax evasion and money laundering.
Game On! Bybit and Borussia Dortmund Kick Off International Champion Partnership
Bybit is thrilled to announce that we have launched a global multi-year partnership with German professional sports club Borussia Dortmund (BVB). This new partnership is an equally clear signal for football to embrace innovative technologies, and for innovative technologies to connect with the sport.
Why Crypto Is the Next Big Trend in Financial Planning
Adam Blumberg – CoinDesk
Cryptocurrency might be a perfect addition to a financial service practice, if you’re trying to grow and maintain your business.
Why would I say this when we know that most advisers would never tell their clients to allocate more than 5% of their portfolio to cryptocurrencies?
Fidelity launches engineering hiring initiative to build out crypto trade and custody services
Frank Chaparro – The Block
Fidelity Digital Assets — the cryptocurrency unit of investment giant Fidelity — is looking to bring on as many as 20 engineers as part of a hiring initiative to ramp up development of its crypto trading and custody services.
The company, which first entered the market in late 2018, already provides hedge funds and other institutional investors with bitcoin custody and trade execution. The build-out of the team would help the firm serve the increase in institutional demand for such services, the firm said in a new blog post.
In Torrent of Falsehoods, Trump Claims Election Is Being Stolen; Most television networks cut away from the statement President Trump gave Thursday night from the White House briefing room on the grounds that what he was saying was not true.
Peter Baker and Maggie Haberman – NY Times
Even for President Trump, it was an imagined version of reality, one in which he was not losing but the victim of a wide-ranging conspiracy stretching across the country in multiple cities, counties and states, involving untold numbers of people all somehow collaborating to steal the election in ways he could not actually explain.
Downing St condemned for failing to prepare for post-Brexit borders; National Audit Office says UK business likely to face ‘widespread disruption’ next year
Peter Foster – FT
The UK is likely to face “widespread disruption” as the result of its failure to prepare adequately for the new border controls that businesses will face next year after Brexit, a report from the public spending watchdog has warned.
Trump’s Special Twitter Treatment Would End With Biden Win
Kurt Wagner – Bloomberg
For now, violating posts get warning label, not removal; But ‘world leader’ newsworthiness rules wouldn’t apply
As U.S. president, Donald Trump receives special treatment from Twitter Inc. when he violates the company’s rules around offensive or misleading content. That exemption will end in January if he loses the presidency.
Biden Pulls Ahead in Georgia, Closes Gap in Pennsylvania
Josh Wingrove, Jennifer Epstein, and Jordan Fabian – Bloomberg
Biden overtakes Trump in Georgia, catching up in Pennsylvania; Trump filed or promised lawsuits in four swing states so far
Democrat Joe Biden’s hold on the race for the White House continued to tighten as he overtook Donald Trump in a crucial swing state — and steadily chipped away at the president’s lead in another — amid mounting legal complaints from Trump’s campaign.
Kelly Loeffler donates to Trump recount fund
Patricia Murphy, The Atlanta Journal-Constitution
President Donald Trump delivered an extraordinary speech from the White House Thursday night, calling into question the legitimacy of the votes coming in from several states, including Georgia.
House Republicans introduce bill to forbid financial transaction taxes
Brian Croce – Pensions & Investments
Two key Republican House members have introduced a bill that would prohibit states from imposing taxes on financial transactions.
Rep. Patrick McHenry, R- N.C., ranking member on the House Financial Services Committee, and Rep. Bill Huizenga, R-Mich., ranking member on the Investor Protection, Entrepreneurship and Capital Markets Subcommittee, unveiled the Protecting Retirement Savers and Everyday Investors Act on Oct. 27.
The Election Through Warren Buffett’s Eyes; Berkshire Hathaway’s many businesses make it a good proxy for corporate America, and a Biden regime could bring change on several fronts. The most important thing is stopping Covid-19.
Tara Lachapelle – Bloomberg
Warren Buffett has always taken the stance that regardless of who is president or which party holds power, each generation of Americans will be better off than the one that came before it — even if dark moments test our ability to believe it so.
Climate activist Thunberg hits back at Trump over anger management taunt
Swedish climate activist Greta Thunberg hit back at Donald Trump on Twitter late on Thursday saying the U.S. president should “chill” about the election, a riposte to his tweet last year mocking the teenager over what he called her anger management issues.
Biden’s Lead Is Bittersweet For America’s Allies; A messy exit by Donald Trump would be a relief for Paris, Berlin and Brussels, but also a wake-up call to take control of their own future.
Lionel Laurent – Bloomberg
There are still numerous uncertainties surrounding the U.S. presidential election, but the good news for the European Union is that its unofficial preferred candidate, Joe Biden, looks close to taking the White House. A defeat of Donald Trump, if that’s how the race ends, would mean the 27-member bloc can avoid four more years of aggressive trade wars, attacks on multilateral institutions and erratic behavior.
FCA bans three sex offenders from UK financial roles; Britain’s financial regulator uses enforcement powers for first time in relation to a sexual offence
Matthew Vincent – FT
The UK’s financial regulator has banned three men convicted of sexual offences from ever working in the financial services industry — the first time it has used its enforcement powers in relation to this type of crime.
FCA bans three individuals from working in the financial services industry for non-financial misconduct
The Financial Conduct Authority (FCA) has prohibited Russell David Jameson, Mark Horsey, and Frank Cochran from working in the financial services industry following findings that they are not fit and proper. Each of them had been convicted of serious non-financial indictable offences while working in the financial services industry.
US justice department sues to block Visa’s $5.3bn Plaid takeover; Government alleges payments group is a monopolist trying to take out a future competitor
Laura Noonan – FT
The US Department of Justice has moved to block Visa’s $5.3bn takeover of fintech group Plaid, arguing that the deal would deprive merchants of an “innovative alternative” to big credit card companies and would dissuade new entrants to the payments market.
Former Macquarie financial adviser charged with dishonesty offences
On 30 October, following an ASIC investigation, former financial adviser Mr Warren Scott Acworth appeared before Brisbane Magistrates Court charged with 27 offences, namely:
Verena Ross speaks about CRA Regulation at ECMI Annual Conference
Today, ESMA Executive Director, Verena Ross, has delivered a speech on the CRA Regulation, and related issues, at ECMI’s 2020 Annual Conference which was held online on 5 and 6 November.
ESMA publishes new Q&A on product governance
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today updated its Questions and Answers on the implementation of investor protection topics under the Market in Financial Instruments Directive and Regulation (MiFID II/ MiFIR).
ESMA updates Q&A on Benchmarks Regulation
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today updated its Questions and Answers on the European Benchmarks Regulation (BMR).
FINRA OTCE and OTC Transparency Data Websites Availability
FINRA will be performing scheduled maintenance to the OTCE.FINRA.org and OTCTransparency.FINRA.org websites on Saturday, November 7, 2020, from approximately 10 a.m. to 4 p.m. ET. During this time, these websites will be unavailable to users.
SEC Awards More Than $3.6 Million and $750,000 in Separate Whistleblower Awards
The Securities and Exchange Commission today announced two separate whistleblower awards for total payments of over $4.3 million. In the first order, the Commission awarded a whistleblower over $3.6 million for providing important information that alerted the Commission to misconduct occurring abroad. The whistleblower provided substantial and ongoing assistance to enforcement staff, which included traveling to another country at the whistleblower’s own expense to meet with staff in person and providing extensive supporting documentation.
Opening remarks at the November 5, 2020 Meeting of the Asset Management Advisory Committee; Hester Peirce
Thank you, Ed [Bernard]. Welcome to the newest Committee member, Renee LaRoche-Morris. It is a pleasure to be able to speak to you all again. Today’s agenda is in keeping with the Asset Management Advisory Committee’s founding principles: to provide the Commission with a diverse set of perspectives on a range of topics affecting investors and market participants. Few matters are more pressing today for investors and markets than ensuring that asset managers are able to continue to function effectively and serve their clients’ needs in these challenging times.
Opening Remarks at the November 5, 2020 Special Meeting of the Asset Management Advisory Committee; Chairman Jay Clayton
I would like to welcome everyone to today’s Special Meeting of the Commission’s Asset Management Advisory Committee, or AMAC. Thank you to Mark Tibergien for his service on the Committee since its inception, and welcome to Renee LaRoche-Morris, the Committee’s newest member. I know Renee will provide important insights to the Committee from her years of experience. And, to follow up on a point Ed [Bernard] just made, one thing we really like about our advisory committees is the extent to which they provide a way for committee members to work with our staff, who provide their expertise and experience to facilitate the committees’ efforts. This engagement is good for us, I hope good for the Committee members and those who present to the Committee and, ultimately, facilitates a better common understanding of our markets and the needs of our investors. Thank you to the staff who work so closely with the members of the AMAC and with the members of the public who engage with the Commission through the AMAC.
New Zealand Financial Markets Authority Releases Standard Conditions For Licensing Of Financial Advice
The Financial Markets Authority (FMA) has released the final standard conditions for a full Financial Advice Provider licence and confirmed three classes of financial advice service, following an extensive consultation with the industry.
Promoting the Use of English and Establishing a Single Point of Contact for Foreign Asset Management Firms
Prime Minister SUGA Yoshihide stressed in his first policy speech to the Diet in October that the Japanese government will pursue a range of initiatives for a global financial center in Asia and the world. Strengthening Japan’s functions as a global financial center will help to make global financial markets more resilient against crises such as natural disasters through geographical diversification of financial centers. Also, that will help create new employment and business opportunities as well as economic growth in Japan.
Investing and Trading
Marijuana stocks surge as investors bet on a more weed-friendly US
Thornton McEnery – NY Post
Cannabis stocks are rising to new heights as the smoke begins to clear around the 2020 election. Shares in big weed companies soared on Thursday as investors began to price in a victory for pot-friendly presidential hopeful Joe Biden, even as five US states — including the conservative red state Mississippi — approved measures to legalize the stuff.
Early US election results prompt rush for small and mid-cap ETFs; BlackRock’s iShares Russell 2000 attracted $714m in net inflows on Wednesday
Steve Johnson – FT
ETF investors piled into mid and small-capitalisation US stocks on Wednesday in the immediate aftermath of the presidential election. A net $753m was poured into US Equity Small Cap exchange traded funds and $294m into their mid-cap peers, according to data from Morningstar, dwarfing flows into the far larger blue-chip market segment.
Pandemic drives financial advisers to speed tech change; Digital shift could cut costs and open sector for broader range of clients
Damian Fantato – FT
For years, having a financial adviser has meant lots of paperwork and attending face-to-face meetings to dissect a portfolio’s performance. But the coronavirus crisis has pushed many UK advisers and their clients to embrace new practices. Like many businesses, executives are turning a spare room into a workplace and using phone and online technology to communicate with clients.
Soyabean prices hit four-year high as nerves rise over food inflation; Dry weather disrupts supply of agricultural commodities just as governments fill reserves
Emiko Terazono – FT
Dry weather and government stockpiling have pushed soyabean prices to a four-year high, as a broad rebound in agricultural commodities creates unease about inflation.
Hershey Grabs Candy Market Share; Chocolate sales jumped nearly 10% at stores during company’s latest quarter
Annie Gasparro – WSJ
Hershey Co. HSY 0.46% said it gained ground in the U.S. candy market as retail sales of its chocolate brands jumped nearly 10% in its latest quarter.
Markets Should Stop Caring About Quantitative Easing; Central-bank bond purchases’ main power is to signal that interest rates will stay low, but investors are already pricing this in
Jon Sindreu – WSJ
The second Covid-19 wave is prompting a fresh wave of “quantitative easing.” Investors can afford to look away: The central-bank money machine has become a poor guide to their decision-making.
Richest Americans Win With a Divided U.S. Government; The pressure is easing on wealthy Americans to make quick moves before the end of the year.
Ben Steverman – Bloomberg
Wealthy Americans watching election results are breathing a sigh of relief, for now. Advisers to the rich had been planning a variety of end-of-the-year strategies to protect their clients from big tax hikes in case former Vice President Joe Biden was elected president alongside wide Democratic majorities in both chambers of Congress — a “blue wave” that doesn’t seem to be materializing.
Environmental, Social and Corporate Governance
EU’s Green Bonds Set to Preempt Rules That Will Govern Them
Jill Ward, John Ainger, and Lyubov Pronina – Bloomberg
Standards are expected to set new global market benchmark; Push to issue debt to fund recovery could lead to greenwashing
The European Union’s rush to finance its recovery from the pandemic means its first-ever green bonds may come before the standards meant to regulate them.
Rich Countries Missing the $100 Billion Climate Finance Goal
Jess Shankleman – Bloomberg
OECD says developed nations paid $78.9 billion in 2018; Effort undermined after U.S. stopped paying Green Climate Fund
Rich countries risk missing their goal to provide $100 billion a-year by 2020 to help poorer nations combat climate change, after funding slowed in the year since President Donald Trump vowed to pull the U.S. out of the global Paris deal.
Japan’s govt to consider raising support for ESG investments -spokesman
Japan will consider increasing financial incentives for environmental, social and governance (ESG) investment, top government spokesman Katsunobu Kato said on Friday.
ING names new chief risk officer in continued leadership revamp; Ljiljana Cortan joins ING as chief risk officer after former risk head Steven van Rijswijk became CEO in July earlier this year.
Annabel Smith – The Trade
Dutch investment bank ING has appointed the former risk chief at HypoVereinsbank – UniCredit Bank to head up its risk operations in the latest senior leadership appointment since its former CEO moved to UBS.
Natixis to cut ties with under-fire H2O; French investment bank looks to sell majority stake in asset manager
David Keohane, Owen Walker and Robert Smith – FT
Natixis is seeking to sell its majority stake in under-fire H2O Asset Management, as the French investment bank looks to sever all ties with a controversial subsidiary that exposed weaknesses in its risk management.
UBS Sued for $500 Million by Chinese Tycoon Over Deal Gone Awry
Guo says bank wiped out his investment with margin call; UBS denies any wrongdoing in dealings with Chinese businessman
Guo Wengui, a wealthy Chinese businessman with close ties to Steve Bannon, stepped up his fight to claim $500 million from UBS Group AG that he lost after the bank called in a margin loan.
China’s Big Squeeze Puts Banks Under Rising Pressure; There is no prospect of a meaningful recovery for China’s large banks while interest-rate policies leave lenders under pressure
Mike Bird – WSJ
There are very few places in the world where interest rates are actually higher than they were at the beginning of 2020. Among large economies, China stands nearly alone. Its banks will continue to pay the price.
China’s central bank says Ant’s IPO suspension is to safeguard consumer, investor interests
The decision to suspend Ant Group’s planned initial public offering in China was based on a comprehensive consideration about safeguarding the interests of financial consumers and investors, a senior central bank official said on Friday.
Investors march back into China bets after Ant IPO halt, U.S. vote
Andrew Galbraith, Tom Westbrook – Reuters
The shock suspension of Ant Group’s massive share offering and a possible Joe Biden U.S. presidency have become fresh tailwinds for China’s stock market, as investors rush to snap up a piece of an economy recovering rapidly from the coronavirus pandemic.
Bank of Canada Begins Search for New Top Deputy After Wilkins
Shelly Hagan – Bloomberg
The search is officially on for a new senior deputy governor at the Bank of Canada. With Carolyn Wilkins moving on when her term ends May 1, the Ottawa-based central bank published the job posting Wednesday. The search for her replacement will be undertaken by recruiting firm Boyden.
Why China Changed the Rules on Jack Ma’s Ant Group
Years of loose regulatory oversight in China helped billionaire Jack Ma’s Ant Group become the world’s most-valuable financial giant, with businesses spanning payments, banking, wealth management and insurance. But a turnabout in rhetoric from Chinese authorities — and new rules they slapped suddenly on its lucrative consumer-loan business — signal the once-fertile landscape for the fintech industry has changed. The first casualty was Ant’s $35 billion mega-listing on the eve of its debut in Shanghai and Hong Kong.
Heat Records in Nordic Region Cut Power Prices to Summer Levels
Lars Paulsson and Jesper Starn – Bloomberg
Hurricane Zeta brought warm air and boosted wind farm output; Electricity exports from the region increased last month
Nordic electricity prices have fallen to levels last seen in July and August as unseasonably warm weather cut into demand that’s usually firming up at this point in the season.
Brexit Upheaval ‘Significant’ Even With Deal, Watchdog Says
Joe Mayes -Bloomberg
National Audit Office issues warning in assessment of plans; Poor readiness for border controls among companies, government
Companies face major upheaval at the end of the year due to Brexit even if Britain and the EU sign a free-trade agreement, the U.K.’s public spending watchdog said.
Pound unimpressed by EU Commissioner Breton’s 50/50 chance of Brexit deal
LaToya Harding – Yahoo
Comments of Britain and the European Union having a 50/50 chance of reaching a Brexit deal failed to impress the pound on Friday.
Sterling was lower against both the dollar and the euro as EU internal market commissioner Thierry Breton spoke to France 2 television, saying there was an equal chance of reaching a deal and the UK leaving without one.
Brexit Seems To Benefit The Tiny Nation Of Luxembourg : NPR
Rebecca Rosman – NPR
The tiny country of Luxembourg is one of the few winners to emerge from Brexit. Analysts say Brexit has been pretty good for business and has already led to around 3,000 new jobs for Luxembourg.
Why study of liberal arts offers valuable long-term benefits – and matters even more now; Focus on subjects such as literature and history gives students vital soft skills to succeed, says Professor Leonard K. Cheng, president of Lingnan University;Hong Kong’s only public liberal arts university ranked second in the world for ‘quality education’ – one of the UN Sustainable Development Goals
South China Morning Post
Degrees in science, technology or engineering are traditionally seen as the more “prestigious” choices, rather than the study of liberal arts, such as literature and history, or social sciences – especially in Asia.