Moderna chief predicts existing vaccines will struggle with Omicron

Nov 30, 2021

First Read

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


Hits & Takes
John Lothian & JLN Staff

Today is Giving Tuesday, the day of the year when we are asked by all our friends to give to their favorite charities. And we should do so, especially if we have not already. This is a good day to give to non-profit organizations that bear the burden of feeding the hungry, clothing the naked and housing the homeless. I encourage you all to share some of the many blessings shared with you with others today by making a donation or several. Of course don’t forget some of the favorite non-profits of our industry, including, here in Chicago, the Greater Chicago Food Depository or the Pathway to Adventure Council of the Boy Scouts of America. There is also ALTSO and the Greenwood Project. Happy is the cheerful giver.

The FT has a story titled “What are non-fungible tokens and how do they work?” that is part of a Special Report titled “How Safe are digital assets?” The other articles and videos in the report include:

What influences cryptocurrency values? Why does ‘number go up’ — and why trust that it always will when the reasons are hazy?
What are stablecoins and how do they work? How the digital assets are used, why they are growing in popularity, and why they are in regulators’ sights
How secure are digital assets? Exploring possible security risks and the options for safekeeping
A history of cryptocurrency, from gaming tokens to a $2tn market. The crypto timeline has taken surprising twists and turns over nearly two decades
How effectively are digital assets regulated? Rapid growth is putting pressure on regulators worldwide to collaborate and innovate|Who owns the most cryptocurrency? Some early entrants have accumulated large fortunes, often benefiting from initial distributions
How do criminals exploit cryptocurrencies? Crooks are drawn to the anonymity of digital assets and the law struggles to keep up
Which real-world assets are being tokenised? From ownership of city properties to high-end whisky, limited-edition gins and gold
What are central bank digital currencies? Fears over cryptocurrencies’ impact on financial stability are driving development around the world
What are digital assets and how does blockchain work? Demystifying the benefits and risks, plus how the underlying technology makes it possible

HKEX has an ETF Tax Calculator that you can use to see the advantages of trading ETFs in Asia.

Adam Kezsbom is now an associate general counsel, capital markets, at FINRA. He was most recently at Barclays, but before that he was at the CFTC as a special counsel.

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


The Cboe Options Institute is hosting a 60-minute webinar on Wednesday, December 1 at 12:00 p.m. ET with Michael Buckius and David Jilek from Gateway Investment Advisors, and Nishank Modi and Matt Moran from Cboe. The listed topics focus on the use of stock index options to combat fixed-income challenges and include strategies for “de-risking and return enhancement.” Registration information is here.~SC


Trading Technologies Contracts with Yuanta Futures Taiwan for Distribution of the TT® Platform and Connectivity to the Taiwan Futures Exchange from Taiwan
Trading Technologies
Trading Technologies International, Inc. (TT), a global provider of high-performance professional trading software, infrastructure and data solutions, today announced that they have contracted with Yuanta Futures Taiwan, a Taipei based broker, to connect the TT platform to the Taiwan Futures Exchange (TAIFEX). The TT platform will provide Yuanta Futures Taiwan with a combined carry broker and multi-broker solution for all international clients to access TAIFEX through TT’s global infrastructure.

***** Everyone wants to trade Asia. This is just another data point in that story.~JJL


The Trade names Eurex “Outstanding Derivatives Exchange Group 2021”
We have focused intensively on supporting the market during the pandemic and on promoting important trends that have been reinforced and accelerated by the pandemic, said Eurex chief executive Michael Peters.

***** Congratulations to Eurex on an outstanding win.~JJL


Zoom Gets Sued by Japanese Company That Stakes Claim on Name
Lily Nonomiya – Bloomberg
Zoom Corp., a Japanese recording equipment maker with a 9.6 billion yen ($85 million) market capitalization, is suing the U.S. video conferencing giant of the same name because it wants to protect its trademark, but won’t be seeking damages.

*****We use Zoom recorders for every video shoot. I knew Zoom long before Zoom zoomed in.~JJL


Broadway Expands Leadership Team with Key Promotions; Significant technology appointments coincide with company rebrand as Broadway capitalizes on global growth and prepares for the future
Broadway, a leading provider of high-performance front-office solutions, today announced it has elevated three long-tenured Broadway technology leaders to its Leadership Team. The appointments include Eitan Reich as Chief Technology Officer; Misha Weinberg as VP of Engineering; and Dario Gatta as Chief Information Officer.

*****Broadway is not the only place to get a bright light shined on you. That can happen right here at JLN.~JJL


Monday’s Top Three
Our most-clicked story on Monday was LSE chief battles to save exchange from becoming the FTSE’s biggest faller, from The Times of London. Second was How Dangerous Is Peter Thiel? from Mother Jones. And third was another headline with a question – Who Is Bitcoin Creator Satoshi Nakamoto? What We Know—and Don’t Know, from The Wall Street Journal. (It’s hard to know for sure, but assuming he/she/they still has the one million bitcoins mined in bitcoin’s first year, it would make Nakamoto one of the world’s 30 richest people, the article avers.)


MarketsWiki Stats
26,665 pages; 236,394 edits
MarketsWiki Statistics


Lead Stories

Moderna chief predicts existing vaccines will struggle with Omicron; Stéphane Bancel foresees ‘material drop’ in current jabs’ effectiveness, sending stocks and oil prices lower
Jamie Smyth – FT
The chief executive of Moderna has predicted that existing vaccines will be much less effective at tackling Omicron than earlier strains of coronavirus and warned it would take months before pharmaceutical companies could manufacture new variant-specific jabs at scale.

Trading Technologies to connect platform to the Taiwan Futures Exchange; The move comes as demand for access to Asia’s derivatives markets continues to grow.
Wesley Bray – The Trade
Trading Technologies (TT) has contracted with Taipei-based broker Yuanta Futures Taiwan to connect its platform to the Taiwan Futures Exchange (TAIFEX). Yuanta Futures Taiwan, through the use of the TT platform, will be provided with a combined carry broker and multi-broker solution for all international clients to access TAIFEX through TT’s global infrastructure.

UK clearing bank set to launch with $1bn valuation; The Bank of London is only second purpose-built competitor to established players in 250 years
Siddharth Venkataramakrishnan – FT
A new bank set up to approve and process payments will launch in the UK for only the second time in 250 years after a fundraising round valued it at more than $1bn. The Bank of London, a new clearing bank founded by Anthony Watson, Barclays’ former chief information officer for Europe, Middle East and global operations, aims to compete with the Big Four UK banks that dominate the market.

Why US companies need to stop using Libor right now; Risks of not shifting soon enough to new Sofr market benchmark are rising
Tal Reback – FT
As the demise of Libor rapidly approaches, US companies really need to stop the default use of the one-time borrowing benchmark for the global financial system. What might seem a safer option to stick with the status quo is actually far from that. Borrowing now in Libor adds unnecessary complexity and long-term risk in exchange for the temporary comfort of doing what is familiar.

Dubai faces up to rivals as it plans stock exchange revival with IPO offerings; City has come under pressure from regional powerhouses Abu Dhabi and Saudi Arabia
Simeon Kerr – FT
Competition is heating up in the capital markets of the United Arab Emirates, as Dubai seeks to revive its ailing stock exchange with a flurry of initial public offerings. The government of the UAE’s commercial hub plans to privatise 10 state-backed companies, listing some of their shares on Dubai’s domestic bourse in a bid to rival the success of neighbouring emirate Abu Dhabi and regional powerhouse Saudi Arabia. Officials also hope to root more regulatory oversight within Dubai, rather than keeping it at a federal level.

The inside story of the Pfizer vaccine: ‘a once-in-an-epoch windfall’; The American company now dominates the market for Covid jabs. But does that give it too much power?
Hannah Kuchler, Donato Paolo Mancini and David Pilling – FT
Albert Bourla has become the world’s most in-demand chief executive. As vaccines permitted some countries to reopen their economies over the summer, the Pfizer boss flew into Cornwall for the G7 summit in June, parking his private jet next to Prime Minister Boris Johnson’s plane.

Crypto group Galaxy Digital seeks to raise $500m in debt market; Billionaire Mike Novogratz is looking to build a sprawling crypto financial services company
Eva Szalay – FT
Galaxy Digital, the crypto financial services company founded by Mike Novogratz, is seeking to raise $500m in the debt market as digital asset companies race to tap investor enthusiasm surrounding the rapidly growing industry.

Thiel-Backed Crypto Exchange Launches Trading for Institutions
Joanna Ossinger – Bloomberg
Crypto exchange Bullish said it’s started trading for institutional clients and eventually plans to expand retail operations. The company, founded by Block.One, a software company backed by Peter Thiel and hedge fund managers Alan Howard and Louis Bacon, will offer trading on Bitcoin, Ether, Eos and USDC. The platform isn’t available in the U.S. yet, but will be open in other countries including the U.K., Germany and Brazil.

Bank Indonesia Mulls Digital Currency as a Way to ‘Fight’ Crypto
Arys Aditya – Bloomberg
BI has studied central bank digital currency since early 2021; Crypto assets have significant impact on financial system
Indonesia’s central bank wants a digital form of the rupiah to “fight” cryptocurrencies as it considers whether to issue such a tender, said a senior official. Crypto assets are traded alongside commodity futures and are regulated by the trade ministry despite having a significant impact on the financial system, said Juda Agung, an assistant governor at the central bank. He spoke at parliament while undergoing a fit-and-proper test to be named deputy governor.


Booming Atlanta Becomes Epicenter of U.S. Inflation Surge
Michael Sasso and Steve Matthews – Bloomberg
Becky Gunn is the Federal Reserve’s eyes and ears on the ground in Atlanta. She’s constantly chatting up business leaders and consumers, prying intelligence out of them that is sent on to policy makers in Washington. This puts Gunn in a unique position to witness first-hand the greatest inflation surge the U.S. has experienced in decades.

Germany’s Incoming Vice-Chancellor Calls for ‘Lockdown of the Unvaccinated’
Iain Rogers and Patrick Donahue – Bloomberg
Germany’s incoming vice chancellor threw his weight behind harsher curbs on unvaccinated people, as tougher restrictions sweep across Europe to check the latest surge in Covid-19 infections.

‘This is not going to be good’: Moderna CEO on what scientists are telling him about the omicron coronavirus variant
Steve Goldstein – MarketWatch
The CEO of Moderna told the Financial Times there’s no world where current vaccines are as effective as against the delta variant. He told the Financial Times there’s no world where current vaccines are as effective as they have been against the delta variant. And he suggested the drop-off could be significant.

What’s Worst About Omicron So Far Is the Uncertainty; Waiting means imagining, and imagining leads to anxiety. And yet, biding our time until we know more about omicron is all we can do.
Andreas Kluth – Bloomberg
So here we go again. The coronavirus has mutated, as we’ve always known it would, and the new variant, called omicron, is spreading fast. Should we be scared or sanguine? Should we change our behavior and plans or carry on? To answer these questions, we need three pieces of information that we don’t yet have. So we just have to wait. And for many of us, the waiting itself is the problem.

Japan Confirms First Case of Omicron as Nation Bans New Entry
Kanoko Matsuyama and Isabel Reynolds – Bloomberg
Japan confirmed its first case of omicron variant as the nation closed its borders to new foreign entrants and introduced strict quarantine for its own citizens on arrival from countries where the variant has been found.

Covid-19 Antibody Drugs Are Challenged by Omicron, Preliminary Testing Indicates; Regeneron said its antibody drug cocktail was found to lose effectiveness against the new variant
Joseph Walker – WSJ
Preliminary tests indicate the Covid-19 antibody drug cocktail from Regeneron Pharmaceuticals Inc. loses effectiveness against Omicron, the company said Tuesday, a sign that some products in an important class of therapies might need modifying if the new strain becomes widespread.

Exchanges, OTC and Clearing

ICE Expands Environmental Complex with the Launch of a Global Carbon Futures Index Contract
Intercontinental Exchange (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, today announced that it plans to launch a futures contract based on the ICE Global Carbon Futures Index (ICE: CO2). The new futures contract is designed to offer the market a way to access and hedge a global price for carbon and is expected to launch in early 2022, subject to regulatory approval.

Announcement of T7 Release 10.1
Deutsche Börse plans to introduce T7 Release 10.1 on 27 June 2022. The simulation period for T7 Release 10.1 is planned to start on 2 May 2022. This circular provides T7 Trading Participants with the T7 Release 10.1 timeline, planned scope and the communication schedule.

First Industry Test Environment for CHESS replacement project now open

TMX Group Holiday Operating Schedule
Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange and Montréal Exchange will be closed on Monday, December 27, 2021, Tuesday, December 28, 2021, and Monday, January 3, 2022 in lieu of Christmas Day, Boxing Day and New Year’s Day, respectively.

JPX Publishes “Survey of TCFD Disclosure in Japan”
On November 30, Japan Exchange Group, Inc. (JPX) published the “Survey of TCFD Disclosure in Japan”, a survey of disclosure based on the Recommendations of the Task Force for Climate-related Financial Disclosures (TCFD) among the 259 Japanese listed companies which had declared support for TCFD (and were listed as a TCFD Supporter on TCFD’s official website) as of the end of March 2021.

— Administrative Amendments to the Final Settlement Rules Regarding Japanese Holidays in Connection with Four (4) Japanese Equity Index Futures and Options Contracts — CME
— UPDATE: OTC IRS Production Advisory – Support for Flexible Fixing Date Offset (Lookback) — CME
— Performance Bond Requirements – Interest Rate, Energy Margin – Effective November 30, 2021 — CME
— Performance Bond Requirements: Agriculture, Energy, FX, and Interest Rate Margins – Effective November 30, 2021 29 Nov 2021 — CME
— OTC IRS Production Advisory – Coupon Blending Enhancement — CME
— Amendments to Daily Settlement Procedure Document of the FOB Santos Soybeans Financially Settled (Platts) Futures Contract — CME


Wise customer numbers and volumes continue to climb; Money transfer group reports revenue surge in second quarter
Siddharth Venkataramakrishnan – FT
Money transfer company Wise has reported strong revenue growth in its most recent quarter, as customer numbers and volumes continue to rise. In its second quarter until the end of September, revenues rose 25 per cent to £132.8m year on year, compared with a 43 per cent increase in the first quarter. It processed £18bn of transactions in the quarter, 36 per cent higher than the same period in 2020. Customer numbers were up 23 per cent year on year to 3.9m.

SoftBank Bets on Asian Metaverse Platform Selling Digital Gucci, Dior; Naver’s Zepeto, boasting a base of young female users, attracts $150 million SoftBank investment, valuing it at more than $1 billion
Jiyoung Sohn – WSJ
SoftBank 9984 -2.87% Group Corp. is investing $150 million in a South Korean metaverse platform that has amassed a large following of young female users by selling high-fashion items for 3-D avatars, according to the companies involved in the deal.

Horizon to provide market making and agency trading on one platform; New platform will allow clients to optimise their running cost and implement cross business logic such as internalisation or credit risk book.
Wesley Bray – The Trade
Horizon Software has expanded its electronic trading platform to now include market making and agency trading functions on one single platform, powered by its algo framework. Horizon, which was originally design for market making and algo trading services, now looks at improving agency trading by leveraging its expertise in latency, scalability and algo and execution strategies to banks and brokers.

Appital appoints capital markets and FinTech expert as head of product; Incoming head brings considerable experience of equity capital markets, data engineering and analytics to Appital, with experience at Credit Suisse and Numis.
Wesley Bray – The Trade
Equity capital marketplace Appital has appointed a technologist with a background in equity capital markets as its new head of product. Mike Wharton takes on the role and will support Appital’s objective to bring innovation and automation in equity capital markets, while improving liquidity for investors and allowing them to gain greater exposure to deal flow and execution opportunities.


Finland Battles ‘Exceptional’ Malware Attack Spread by Phones
Kati Pohjanpalo – Bloomberg
Finland is working to stop a flood of text messages of an unknown origin that are spreading malware. The messages with malicious links to malware called FluBot number in the millions, according to Aino-Maria Vayrynen, information security specialist at the National Cyber Security Centre. Telia Co AB, the country’s second-biggest telecommunications operator, has intercepted some hundreds of thousands of messages.

Alan Paller, early leader in cybersecurity awareness, dies at 76
Ellen Nakashima – The Washington Post
Alan Paller, an early and influential advocate for cybersecurity and a diverse cyber workforce, died Nov. 9 at his home in Bethesda, Md. He was 76.
His death was announced by the Bethesda-based SANS Institute, one of the world’s foremost nongovernment cybersecurity training programs, which Mr. Paller founded with his wife in 1989. The institute did not specify the cause.

New cybersecurity directive mandates fixes for federal agencies
Matt Morris – Security Info Watch
On November 3, 2021, the Biden administration produced the federal government’s latest directive on cybersecurity. With this directive, civilian federal agencies have a mandate to fix software and hardware vulnerabilities to improve defenses against cyberattacks. Titled BOD 22-01, the directive comes from the Cybersecurity and Infrastructure Security Agency (CISA) and covers more than 200 known threats uncovered in the past four years. It also includes nearly 100 security flaws found in 2021 that require immediate attention. The directive provided agencies two weeks to fix the most recent and pressing flaws, and six months to patch and monitor the older threats. It’s meant to protect agencies from cybersecurity breaches, such as the widespread attacks uncovered in March 2021 where Chinese hackers used Microsoft Exchange Server flaws to access the emails of more than 30,000 organizations.

Seven Essential Open Source Tools In Cybersecurity
Jonah Kowall – Forbes
Covering the most important tools for security professionals is not an easy topic. There is always innovation in the community, and new capabilities are being added to tools we use regularly.
You might be thinking that these tools will be new and cutting edge, but in fact, most of these tools have been commonly used by security professionals both personally and professionally for quite some time. The most essential open-source tools cover everything from assessing systems, securing your personal data, debugging issues and understanding complex systems such as Kubernetes. The tools we cannot live without are:

Federal government lacking expertise in AI and cybersecurity, GAO reports
Peter Musurlian – Federal News Network
The Pentagon wants to incentivize defense contractors to take their cybersecurity more seriously. Having good cybersecurity could result in higher profit margins for defense contractors. Or it could help differentiate their proposals from the competition. Those are a couple of incentives the Defense Department is considering before the Cybersecurity Maturity Model Certification becomes a reality. Getting a CMMC certificate will eventually be a requirement in some defense contracts. But it will not be effective for at least nine months as it works through a lengthy rulemaking process. So DoD is looking for ways to encourage network security practices in the meantime. (Federal News Network)


Statement by Commissioner Dawn Stump Regarding Recent Joint Statement by the OCC, Federal Reserve & FDIC on Crypto Assets
Earlier this year, I released a Primer with respect to cryptocurrencies and other digital assets. My intent in releasing the Primer was to provide clarity as to the CFTC’s legal authorities when it comes to these assets in light of the recent growth in their popularity and the prevalence of confusion and misunderstanding regarding our regulatory function in this space as directed by Congress.
Since issuing this Primer, I have encouraged all regulators to provide clearer descriptions of their existing authorities to participants and the public. Only from that point can we determine whether gaps exist, and properly evaluate the need for any new laws and regulations. Otherwise, we risk stifling innovation due to poorly understood objectives and uncoordinated responses.

Algorand Foundation pioneers Defi 2.0 on ThetaNuts
Teuta Franjkovic – Coin Rivet
The Algorand Foundation has announced the launch of ‘ALGO vaults’ on with QCP Capital as the market maker. Thetanuts is a DeFi derivatives protocol that provides easy access to institutional-grade strategies through structured product vaults. The protocol has BTC, ETH and the widest selection of altcoin option vaults.

Shiba Inu signs NDA with ‘top studio’ to develop metaverse game
Sam Cooling – Coin Rivet
Last week, SHIB developer Shytoshi Kusama teased on Twitter that something big was coming, and we can reveal that he was talking about plans for a metaverse Shiba Inu game with a triple-A game studio and leading developer William David Volk.

China’s Biggest Crypto Exchange Picks Singapore as Asia Base
Bloomberg News
Huobi is breaking away from its home market after crackdowns; Firm plans Europe regional headquarters in 2023: Co-founder
Huobi Group, the operator of China’s largest cryptocurrency exchange, has picked Singapore as its regional headquarters while choosing to have another location for Europe, said co-founder Du Jun.

Crypto Firm Digital Currency Finds New Home in Stamford
Max Reyes – Bloomberg
Cryptocurrency conglomerate Digital Currency Group Inc. and subsidiaries including digital asset manager Grayscale Investments LLC will relocate from New York City to Stamford, Connecticut, as cities compete for blockchain firms.

SoftBank-Backed Crypto Brokerage in Brazil Raises $50 Million
Cristiane Lucchesi – Bloomberg
Investors including 10T and Tribe Capital inject new money; 2TM is valued at $2.15 billion and aiming for expansion
2TM Participacoes SA, owner of the biggest Brazil-based cryptocurrency brokerage, raised $50 million as it hunts for acquisitions to expand into additional Latin American markets.

Crypto Traders in South Korea Get a Tax Reprieve; The government looks set to push off a capital-gains tax on Bitcoin, Ether and other digital assets that was supposed to start next year.
Heesu Lee and Shinhye Kang – Bloomberg
A looming tax on cryptocurrency profits in South Korea will likely be pushed back by a year, giving a reprieve to traders who said they were being unfairly targeted.


China Is Winning the Big Data War
Matt Pottinger and David Feith – NY Times
President Joe Biden came away from his summit with China’s President Xi Jinping on Nov. 15 committed to prosecuting what he called “simple, straightforward competition” with China. Yet Beijing is already beating the United States and its allies in one crucial domain: data.


U.K. Energy Suppliers May Face Stricter Rules Following Crisis
Rachel Morison – Bloomberg
Capital requirements for suppliers may be tightened: regulator; Scrutiny comes after 23 suppliers collapsed during the crisis
The U.K.’s energy regulator said it may impose stricter capital requirements for gas and power suppliers after almost two dozen companies collapsed since August in the wake of soaring prices.

SEC Staff Issues Accounting Guidance on “Spring-Loaded” Compensation Awards to Executives
Securities and Exchange Commission staff today released guidance for companies about how to properly recognize and disclose compensation cost for “spring-loaded awards” made to executives.

ASIC to extend deadlines for 31 December 2021 unlisted entity financial reports
ASIC will extend the deadline for unlisted entities to lodge financial reports by one month for balance dates from 24 December 2021 to 7 January 2022 (inclusive). The extended deadlines will assist with any pressures on resources for the audits of smaller entities and provide adequate time for the completion of the audit process considering challenges presented by COVID-19 conditions.

ASIC launches multiple legal actions against Westpac
ASIC has commenced six civil penalty proceedings against Westpac in the Federal Court. The proceedings, each the result of an individual ASIC investigation, allege widespread compliance failures across multiple Westpac businesses. The alleged conduct occurred over many years and affected many thousands of consumers.

Federal Court Orders California Forex Firm and Its Owners to Pay Over $4 Million for Pool Fraud and Registration Violations
The Commodity Futures Trading Commission today announced that the U.S. District Court for the Northern District of California entered a consent order for permanent injunction, monetary sanctions, and equitable relief against defendants Travis Capson of Kanab, Utah, Arnab Sarkar of El Cerrito, California, and their California company Denari Capital, LLC (Denari) to resolve a CFTC action filed on November 5, 2019. [See CFTC Press Release No. 8073-19].

Statement by Commissioner Dawn Stump Regarding Recent Joint Statement by the OCC, Federal Reserve & FDIC on Crypto Assets
Earlier this year, I released a Primer with respect to cryptocurrencies and other digital assets. My intent in releasing the Primer was to provide clarity as to the CFTC’s legal authorities when it comes to these assets in light of the recent growth in their popularity and the prevalence of confusion and misunderstanding regarding our regulatory function in this space as directed by Congress.

Investing and Trading

Traders Scrapped $100 Billion of Fed Bets in Friday’s Epic Move
Edward Bolingbroke – Bloomberg
A mass exodus from bets on higher rates appears to have accelerated Friday’s explosive Treasury-market rally during a holiday-shortened session.

Follow the Money, Not the Latest Covid Variant; Americans haven’t spent like this since before the 2008 financial crisis. There’s a lot of demand, but where the liquidity goes depends ever more on whether inflation keeps rising and the pandemic disruption drags on.
John Authers – Bloomberg
Follow the Money (Not the Germs)
If money is anywhere, it has to go somewhere. Liquidity can never be safely ignored, and if anyone ever doubted that, the pandemic has rammed the point home. With so much money looking for something to purchase, prices so far have done nothing but rise. That applies both to financial securities and, unfortunately, the goods and services that we want to buy.

Are Hedge Fund ‘Bubble’ Bets Naughty or Nice? Europe isn’t comfortable with financial investors making bank on its carbon market. But that’s short-sighted.
Chris Bryant – Bloomberg
More than a decade after Lloyd Blankfein, then-boss of Goldman Sachs Group Inc., claimed banks do “god’s work,” the finance industry still struggles to convince the public it’s a force for good. A new chapter in this debate has erupted in Europe where hedge funds and national governments can’t agree on what constitutes “good” financial speculation.

Inflation ETF Pioneer Says Investors Need More Interest-Rate Risk; Quadratic’s Nancy Davis explains why she switched to managing ETFs instead of a hedge fund
Sydney Maki and Claire Ballentine – Bloomberg
Nancy Davis was a trader at Goldman Sachs Group Inc. and a fund founder before she made a splash with IVOL, an actively managed exchange-traded fund that allows investors to bet on inflation and interest-rate volatility. The Tampa native says she’s loved the nonlinear risk of options trading since she was in college at George Washington University. Today her firm, Quadratic Capital Management, no longer manages hedge fund money. Instead Davis focuses on overseeing the IVOL strategy, which had about $3.56 billion as of mid-November, and a deflation strategy, BNDD, that opened in September. Davis, 45, spoke with Bloomberg Markets in October about her career, why fixed-income investors need volatility exposure, and her relationship with fellow active ETF manager Cathie Wood of Ark Investment Management. The interview has been condensed and edited for clarity. (Bloomberg Terminal users can participate in a TopLive Q&A with Davis at 10 a.m. in New York here.)

Oil Companies Got Their Hedges Clipped; Producers trying to lock in prices fail more often than they succeed—something to think about with prices back to multiyear highs
Jinjoo Lee – WSJ
Investors are demanding more from oil companies this year: More spending discipline, more cash returns, more details around energy transition strategies. They should add one more thing to the list: More humility.

Environmental, Social and Corporate Governance

Understanding Green Bonds
Debbie Carlson –
The green bond market could soon reach US$1 trillion in annual issuance volume globally by 2023, as governments, supranational entities and corporations make pledges to reduce carbon or have net-zero carbon emissions by 2050.
That’s still a tiny part of the $100 trillion total global debt, but considering the infrastructure upgrades that must be made to cut greenhouse gases—everything from improving the electrical grid to developing more efficient use of natural resources—the debt markets will play a key role in financing these projects.

ESG-Focused Hedge Fund Launched by Canada Market Veterans
Sandrine Rastello and Saijel Kishan – Bloomberg
Nordis Capital plans to raise C$100 million within next year; ‘Markets will allocate capital appropriately,’ the CIO says
A group of government and markets veterans have started a hedge fund that will invest only in companies that promote positive environmental, social and governance policies — and bet against those that fail to do so.
Nordis Capital, based in Montreal, will launch with C$34 million ($26.6 million) and plans to raise C$100 million within the next year, according to Chief Investment Officer Francois Bourdon. The fund will bet against companies, including Facebook parent Meta Platforms Inc. and Brazilian oil producer Petrobras, by short selling their shares.

TD Asset Management launches three new Exchange-Traded Funds to help clients invest towards a better tomorrow
TD – Yahoo Finance
TDAM evolves its ETF lineup with the low-cost TD Morningstar ESG Canada Corporate Bond Index ETF, TD Morningstar ESG U.S. Corporate Bond Index ETF and the TD Global Technology Innovators Index ETF
Today, TD Asset Management Inc. (TDAM) announced the launch of three ETFs including two new Environmental, Social and Governance (ESG) Exchange-Traded Funds (ETFs) to its expanding ESG solution suite. TD Morningstar ESG Canada Corporate Bond Index ETF (TMCC) and TD Morningstar ESG U.S. Corporate Bond Index ETF (TMUC) seek to track the performance of corporate bond indexes that measure the investment return of fixed income securities from issuers that exhibit higher ESG ratings relative to their peers.


Banks Didn’t Listen to Buyout Boom Warnings. That’ll Cost Them; Regulators have tried to cajole lenders to curb financing for private equity deals to little effect, so tougher measures are on the way.
Paul J. Davies – Bloomberg
Europe’s top finance watchdog is preparing to hit banks that lend aggressively to private equity with demands that they put more capital behind these activities. That’s what they get for not listening to advice. The European Central Bank is increasingly concerned about leveraged loans, which are created by banks to finance buyouts and dividends. Andrea Enria, chairman of supervision at the ECB, warned banks in July that he would use all the tools he could to cut risks in this market.

Singapore’s UOB Asset Management launches first ETF in more than 10 years; The manager claims the Apac Green Reit ETF is the first to offer sustainable property investments in the Asia-Pacific
Ernest Chan – FT
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. Singapore’s UOB Asset Management has listed its first exchange traded fund in over a decade with the launch of a green-themed real estate investment trust product.


Chinese province targets journalists, foreign students with planned new surveillance system
Security officials in one of China’s largest provinces have commissioned a surveillance system they say they want to use to track journalists and international students among other “suspicious people”, documents reviewed by Reuters showed.

Singapore’s Long-Awaited Reopen Was Flopping Even Before Omicron
Kyunghee Park, Angus Whitley, and Siddharth Vikram Philip – Bloomberg
Data show under one-quarter of allowable quota being utilized; Rising Europe cases, cost of Covid tests putting travelers off
Even before the new omicron variant forced the delay of several vaccinated travel lanes, Singapore’s grand reopening was off to a slow start. Despite the social media hype and initial bookings rush, the number of people actually traveling using the city-state’s quarantine-free travel lanes is surprisingly few, according to Bloomberg calculations based on Civil Aviation Authority of Singapore data.

We visit more than 100 financial news websites daily (Would YOU do that?)

The Spread

Crypto Options Trading on Solana Has Mostly Fizzled

Observations & Insight Registration is open for FIA Expo taking place this 14-15 November at a new location - the Sheraton Grand Riverwalk Chicago. Experience compelling panels that build your knowledge, product demos that deliver innovative solutions, and...

Past JLN Newsletters

Pin It on Pinterest

Share This Story