Hits & Takes
John Lothian & JLN Staff
Today is the JLN MarketsWiki Education World of Opportunity Virtual Event, starting at 1:30 p.m. CT. Registration will end at 11 a.m. CT. I would encourage any of you readers who would like to watch the event to register. It is FREE to do so. And since it is a virtual event there is plenty of room for more to attend. We can have up to 500 people, which is about two to five times the number of seats we have at in-person events. Thank you to all the firms who sent interns and to Donnie Roberts and Ed Haravon for participating in todayâEUR™s event. Also, we will share videos of Ed Tilly from Cboe Global Markets, Andre Buckles from OCC and Robin Wood from NFA with the registrants. Thank you to Nancy Ashburn, Jeff Bergstrom, Sarah Rudolph and Suzanne Cosgrove from the JLN team for their help in preparing the event.
S&P Global Platts and ICE have issued a joint paper and open market consultation on the evolution of the Brent complex, which includes Dated Brent, Cash Brent, and ICE Brent Crude Oil futures. — ICE
Former Colony Capital CEO Tom Barrack, who served as the chair of former President TrumpâEUR™s inaugural committee, has said he is pleading not guilty to charges he illegally acted as an agent of the United Arab Emirates. — FT, WSJ
FTX Trading closed a $900 million B round, which it claims is the largest raise in crypto history. What was interesting was some of the names supporting this company, whose owner suggested it could one day buy Goldman Sachs and the CME Group. The investors included: Paradigm, Sequoia Capital, Thoma Bravo, SoftBank, Ribbit Capital, Insight Partners, Third Point, Lightspeed Venture Partners, Altimeter, BOND, NEA, Coinbase Ventures, Willoughby Capital, 40North, Senator Investment Group, Sino Global Capital, Multicoin, the Paul Tudor Jones family, Izzy Englander, Alan Howard, VanEck, Hudson River Trading, and Circle. —FTX Trading This round of funding valued the firm at $18 billion, while a previous round valued the firm, domiciled in Antigua, at $1.2 billion. Earlier this year FTX paid $135 million for the naming rights for the Miami Heat basketball arena. — FT
I get several scam calls a day on my home phone and cellphone. Mostly I just hang up on them, but sometimes I answer because a number looks too close to that of someone or some organization that I know. The Chicago Federal Reserve has put out a consumer scam alert and updated video depicting different scenarios of scam calls that use the Federal ReserveâEUR™s name. Some of the calls claim the Federal Reserve has a warrant for your arrest. I love that one. Or, there is the email claiming that you are eligible to receive a large sum of money (inheritance, lottery winnings, wire transfer, etc.) from the “Federal Reserve Bank.” Another version is an email or phone message claiming that the Federal Reserve is holding money owed to you. And in case you didn’t know it, there are even communications by email or on social media networks claiming to be from the Federal Reserve, stating that you have a âEURœsecret accountâEUR at the Federal Reserve Bank. Sign me up for the secret account. Be careful out there. There are lots of bad guys with great, and sometimes not so great, imaginations. — Chicago Federal Reserve Bank
U.S. life expectancy fell by 1.5 years in 2020, which was the biggest decline in generations and was driven by Covid-19, drug overdoses and homicides. Hispanic men suffered the largest decline. — WSJ
The Milwaukee Bucks won the National Basketball Association championship for the first time since 1971, when Kareem Abdul-Jabbar led them to the crown. This year, Giannis Antetokounmpo tied the record for the most points scored in a championship close-out game with 50 in leading the Bucks to victory. — Yahoo Sports
There were no new donations to the JLN MarketsWiki Education GoFundMe campaign yesterday. Any firms sending interns to our event today, if you want to show appreciation for it after you get feedback from your interns, feel free to make a donation to the GoFundMe campaign. We appreciate any and all support for our education efforts.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
Fidelity Digital Assets – yes, that Fidelity – Tuesday released findings from a survey of 800 investors and declared, âEURœSeven in 10 institutional investors expect to buy or invest in digital assets in the future …âEUR Sounds high, but with Fidelity out there pumping crypto, you canâEUR™t be too surprised that their clients are warming up to it. The companyâEUR™s press release says that its survey was conducted from December 2 of last year to April 2 of this year but fails to speculate on whether the fact that bitcoin almost tripled in price, rising from $19,204 to $58,978 over those four months, might have tinged respondentsâEUR™ views. Fidelity also doesnâEUR™t inspire trust in its survey when it heaps Its plethora (1,100 of them) of âEURœhigh net worth investors, family offices, digital and traditional hedge funds, institutional investors, financial advisors and endowment and foundationsâEUR together under the rubric âEURœinstitutional investors.âEUR More details here. ~Thom Thompson
The industry publication Grown In on Tuesday reported that a lawsuit may put the long-awaited Illinois dispensary lotteries on hold. The suit, filed last Friday in the United States District Court for the Northern District of Illinois by Michigan-based Sozo Health v. Gov. J.B. Pritzker and the State of Illinois, states that the lotteries violate the U.S. constitutionâEUR™s interstate commerce clause because they are only open to Illinois residents. The lawsuit asked the court to declare the dispensary lottery law discriminatory against out-of-state applicants and also requested a temporary restraining order to halt the lotteries. The first of the series of the state lotteries is still scheduled for July 29. A link to the lawsuit is here. No word yet on a hearing date in the case.~SC
If Stablecoins Cause Instability, Regulators Have Themselves to Blame
JP Koning – Yahoo! Finance
With the stablecoin market rising to $100 billion last month, the debate over how to regulate these novel financial products is heating up. Last week, Federal Reserve Chairman Jerome Powell warned that stablecoins are âEURœgrowing incredibly fast but without appropriate regulation.âEUR This week, the PresidentâEUR™s Working Group on Financial Markets, made up of top U.S. financial regulators, will discuss stablecoins.
*****My theory of the value of bitcoin coming from its marginal utility to launder money is one reason I think stablecoins are a bad idea. But I need to dig deeper into each proposal, and this is just a theory, not a belief.~JJL
JPMorgan grants Jamie Dimon âEUR˜specialâEUR™ stock award to stay at bank; Long-serving chief executive given 1.5m options potentially worth tens of millions of dollars
Joshua Franklin – FT
JPMorgan Chase is granting Jamie Dimon a âEURœspecial awardâEUR of 1.5m share options that it said reflected the boardâEUR™s desire for one of the longest-serving chief executives on Wall Street to stay at the bank for a âEURœsignificant number of yearsâEUR.
*****When is the CME Group going to do the same for Terry Duffy?~JJL
We can no longer say floods are an act of God; âEUR˜One law of physics still holds: the warmer the air, the more moisture it can hold. The more moisture, the more rainâEUR™
Joy Lo Dico – FT
Western citizens have come to think of floods as happening elsewhere. At their worst, they happen in the developing world. When they happen at home, they are the bane of the countryside, where water pulses through valleys and villages.
*****Evidently Ms. Lo Dico is not a fan of Thor, the god of Thunder.~JJL
Consumer Scam Alert and Update
Chicago Federal Reserve
There are several currently known scams using the Federal ReserveâEUR™s name:
Telephone calls claiming that the Federal Reserve has a warrant for your arrest
E-mails claiming that you are eligible to receive a large sum of money (inheritance, lottery winnings, wire transfer, etc.) from the “Federal Reserve Bank”
E-mails or phone messages claiming that the Federal Reserve is holding money owed to you
Other communications made via email or on social media networks claiming to be from the Federal Reserve, such as stating that you have a âEURœsecret accountâEUR at the Federal Reserve Bank
***** I have free money for you! NOT!~JJL
A âEUR˜CafeâEUR™ Is Opening In The Middle Of LaSalle Street In The Loop âEUR” And You Can Grab Lunch There Tuesdays; The city is temporarily closing down LaSalle Street in front of the Board of Trade on Tuesdays so people can eat outside.
Kelly Bauer – Block Club Chicago
You can dine on LaSalle Street under a new city program. The city is hosting an outdoor cafe in the middle of the Financial District street on Tuesdays in July and August. Chicagoans will be able to eat and listen to live music in front of the Board of Trade Building, according to the city.
******It will be like the old days of the LaSalle Street Dinner for the Boy Scouts except no circus tent.~JJL
Tuesday’s Top Three
Our most read story Tuesday was Nasdaq, SVB, Citi, Goldman Sachs, and Morgan Stanley Launch New Platform for Trading Private Company Stock, a press release from Nasdaq about Nasdaq Private Market, which was also the MarketsWiki Page of the Day. Second was Monday’s top story, JW Marriott Chicago faces $231 million foreclosure suit, from Crain’s Chicago. And third was FIA Principal Traders Group releases white paper on central clearing in the US Treasury market, from the Futures Industry Association.
26,479 pages; 234,642 edits
NatWest Chairman Says London Office Life Will Never Return
Aoife Kearins and Francine Lacqua – Bloomberg
Widespread return of former working practices unlikely: Davies; Davies also says he sees risk of future inflation in U.K.
The changes wrought by the pandemic on U.K. office life are here to stay, according to the chairman of one of the countryâEUR™s biggest banks. NatWest Group PlcâEUR™s Howard Davies said in a Bloomberg TV interview Wednesday that he doesnâEUR™t expect central LondonâEUR™s footfall to revert to pre-pandemic levels as office workers resist a return to five days a week in the office and the daily commute.
UBS launches portfolio to invest in women-led hedge funds; Bank seeks to tap interest of large investors seeking more diversity
Laurence Fletcher – FT
UBS has launched a portfolio that invests solely in hedge funds led by women in an effort to improve diversity and spot hidden talent in the traditionally male-dominated sector.
FirstFT: BNY Mellon joins State Street in crypto trading push; Custodian banks back crypto trading platform, Amazon founder returns from space and Trump ally arrested
Gordon Smith, Jennifer Creery and Dervedia Thomas – FT
Two of the worldâEUR™s largest custody banks have publicly backed a London-based cryptocurrency trading platform, in a move that points to growing demand from traditional asset managers for bitcoin and other digital tokens.
Crypto exchange FTX secures backing from venture capital and hedge funds; Fundraising values Antigua-domiciled, Hong Kong-based company at $18bn
Miles Kruppa – FT
The cryptocurrency exchange FTX has raised one of the largest rounds of financing for a digital assets start-up, in a signal of continued investor demand for the sector despite the recent drop in the price of bitcoin. FTX said it raised $900m from more than 60 investors including the venture capital firms Paradigm and Sequoia Capital and the private equity group Thoma Bravo, valuing the business at $18bn. A previous round of funding valued FTX at $1.2bn last year.
ICE sees $35 billion in AUM switched to its indices during H1 2021
Dan Barnes – FI-Desk.com
Market and infrastructure operator Intercontinental Exchange has reported strong growth in its index business in the first half of 2021. This was driven by continued growth in assets under management (AUM) in ETFs using ICE fixed income, thematic and ESG-focused indices, including an increasing number of established fixed income and equity ETFs switching their underlying benchmarks to ICE indices.
London Staff Want Pay Rises to Return to Office, Survey Says
Eamon Akil Farhat – Bloomberg
Cash seen as major incentive to head back into city center; Almost half of job seekers now prioritize flexibility
London office workers want an average pay rise equivalent to the cost of some annual railway season tickets to return to their desks full-time after the pandemic, according to a survey.
Bankers Need 72-Hour Week to Master Job, $4 Trillion Wealth Manager Says; Long hours up front are better than spending more years in training, Mary Erdoes says on an episode of âEURœBloomberg Wealth with David Rubenstein.âEUR
Lisa Fleisher – Bloomberg
ThereâEUR™s a reason junior bankers just starting out on Wall Street work 12-hour days, six days a week, says Mary Erdoes, chief executive officer of JPMorgan Chase & Co.âEUR™s asset and wealth management business. That level of intense training will help them master the job in two to three years, instead of the five years it might take if they eased up a bit, said Erdoes, whose unit manages roughly $4 trillion. In an episode of âEURœBloomberg Wealth with David Rubenstein,âEUR she invoked the concept that it takes 10,000 hours of practice and devotion to compete at an elite level.
JPMorgan Awards Jamie Dimon Surprise Retention Bonus; The one-time grant of stock options reflects the boardâEUR™s desire to keep the CEO at the helm for several more years
Simon Clark – WSJ
JPMorgan Chase JPM 1.86% & Co.âEUR™s board gave Jamie Dimon new stock options as a retention bonus, signaling that the largest U.S. bank wants its chief executive to stay for several more years.
Fed Chair Powell Enjoys Support for Reappointment, but HeâEUR™s Not a Lock; If President Biden does seek change, Fed governor Lael Brainard is the most likely candidate
Nick Timiraos and Andrew Restuccia – WSJ
President BidenâEUR™s selection of the next Federal Reserve chair is likely to be a choice between keeping the current chief, who enjoys broad support in markets and among lawmakers from both parties, or replacing him with one of his well-regarded colleagues.
The two-strong trading team; Head of trading, Alex RosellÃ³, and equity trader, Gustavo Iglesias, at Bestinver, tell Hayley McDowell about adapting to a surge in trading volumes following the Spanish asset managerâEUR™s acquisition of Fidentiis, and the challenges that Brexit has posed for European buy-side firms.
Hayley McDowell – The Trade
In mid-2019, Spanish asset manager Bestinver acquired local boutique Fidentiis in a deal that added around â‚¬350 million in assets under management to BestinverâEUR™s â‚¬7 billion portfolio.
Northern Trust Asset ManagementâEUR™s Huemmer on Quality Factor ESG Strategies and Finding the Perfect Index Partnership
FlexShares, the ETF unit of Northern Trust Asset Management, this year launched the FlexShares Developed Markets Low Volatility Climate ESG UCITS ETF and the FlexShares Developed Markets High Dividend Climate ESG UCITS ETF, which track respective STOXX indices1 and were the asset managerâEUR™s first ETFs listed in Europe.
Green push from SEC could trigger another âEUR˜EnronâEUR™, says Peirce; SEC commissioner warns that mandating ESG disclosure standards would distort capital flows Hester Peirce: ESG rulemaking would pull the SEC into an area âEURœbest left to political and civil society institutionsâEUR
Nell Mackenzie – Risk.net
SEC commissioner Hester Peirce has said company disclosures on environmental, social and governance (ESG) impacts should not be regulated by the Securities and Exchange Commission, warning that mandatory disclosures could create enough financial instability for the US to see another âEURœEnron or WorldCom type failure, as people rush to throw their money at companies they think are greenâEUR.
DeFi paradoxes; Why using crypto smart-contracts to remove financial intermediaries comes with its own trade-offs.
Izabella Kaminska – FT
You might have heard the term âEURœDeFiâEUR making the rounds in the cryptosphere. Like us, you may even have tried to understand what it was all about but given up due to the complexity, opacity and jargon surrounding its key aspects.
More Variants Are Coming, and the U.S. IsnâEUR™t Ready to Track Them; The people hunting for mutations want the country to fix its virus sequencing mess.
Cynthia Koons – Bloomberg
ThereâEUR™s no good place to stand inside the Pandemic Response LabâEUR™s sequencing facility in Queens, N.Y. Take a wrong step, and youâEUR™re blocking a gowned-up lab tech as she ferries a plate with the RNA from 384 Covid-19 test samples to a machine that runs a polymerase chain reaction (PCR) test, identifies positives, and extracts them with a robotic arm. A data scientist hurries by, bringing more RNA samples to a device that will convert them into DNA. In the corner are genomic sequencing machines that piece together chopped-up bits of that DNA to identify what form of SARS-CoV-2 a patient has. Name a mutation youâEUR™ve heard of, and this lab has seen it, as it takes part in the national and global efforts to sequence virus genomes, spot new and dangerous variations, and stem their spread.
Want to Party? Get a Covid Passport and Rock On; Boris Johnson’s Covid policy, including on nightclubs, gets more political by the day. That has left the public confused and tested trust.
Therese Raphael – Bloomberg
If the last 18 months have taught us anything, itâEUR™s that a successful Covid policy requires three things: high levels of public trust, a coherent strategy and effective implementation. Prime Minister Boris JohnsonâEUR™s government is in danger of squandering all of them.
SingaporeâEUR™s Covid Numbers Must Learn to Tell a Different Story; If the city-state wants to go back to trying to live with the virus, it must interpret the data in ways that will make its people feel safe, not fearful.
Rachel Rosenthal – Bloomberg
In the earliest days of Covid-19, we were scared and uninformed. The only way to make sense of a deadly virus spreading around the world was to quantify it âEUR” the number of cases and deaths, countries it had reached, age groups it affected. We have learned a lot in the past 18 months, but too little has changed in terms of our response mechanisms, particularly in âEURœZero CovidâEUR countries such as Singapore, where I live, and Australia. The impulse to count every case has become debilitating. ItâEUR™s time to focus on a more informative set of data.
ItâEUR™s Just Too Soon for Covid Boosters; Vaccines are working, plus the human immune system has some neat tricks up its sleeve.
Faye Flam – Bloomberg
People are worried about the coronavirus again. So itâEUR™s understandable that public health officials are feeling pressure to recommend Covid-19 booster shots soon, before we find out the hard way when the vaccines wear off. Pfizer Inc. contributed by announcing earlier this month that it would soon ask the government to authorize third doses of its two-dose vaccine to provide extra protection.
If Vaccine Carrots ArenâEUR™t Working, Maybe ItâEUR™s Stick Time; Health-care employers in particular are overdue to impose some mandates.
Mark Gongloff – Bloomberg
âEUR˜Vaccine OptionalâEUR™ ShouldnâEUR™t Be OK Everywhere
Working in a hospital or dentistâEUR™s office without being vaccinated for Covid seems like doing EVAs outside Jeff BezosâEUR™s spaceship without a spacesuit because you have some concerns about spacesuit technology, and also Marjorie Taylor Greene says spacesuits are a Chinese hoax.
PfizerâEUR™s Cape Town Deal to Produce 100 Million Vaccines for Africa
Riley Griffin – Bloomberg
Cape Town facility to make more than 100 million doses a year; Africa is least-vaccinated continent, underscoring inequity
Pfizer Inc. said it reached an agreement to start production of its Covid-19 vaccine at a facility in Cape Town in an effort to deliver more than 100 million doses annually to African nations.
Delta variant quickly becoming dominant in US, says health chief; Data from CDC estimate 83% of new cases now caused by more contagious strain
Mamta Badkar – FT
US health officials said the contagious Delta variant has rapidly become the most dominant strain of coronavirus in the country amid warnings that the full reopening of the US economy may need to be curtailed by authorities.
The argument for vaccinating teens; A UK advisory committeeâEUR™s caution jars with the governmentâEUR™s lack of it
The editorial board – FT
Vaccinating children will always be an emotive and complex argument. Unlike other measures against Covid-19, such as mask wearing, it is a debate that has split the medical community. Some countries, including the US and France, have pressed ahead with vaccinating children over 12. The UK, on the advice from the Joint Committee on Vaccination and Immunisation, on Monday ruled that step out for all but the clinically vulnerable and those living with at-risk adults, despite a surge in infections among teenagers.
U.S. Life Expectancy Fell by 1.5 Years in 2020, the Biggest Decline in Generations; Covid-19, drug overdoses and homicides drove longevity down; Hispanic men suffered largest decline
Betsy McKay – WSJ
Life expectancy in the U.S. fell by 1.5 years in 2020, the biggest decline since at least World War II, as the Covid-19 pandemic killed hundreds of thousands and exacerbated crises in drug overdoses, homicides and some chronic diseases.
Pfizer, BioNTech Join Halting Effort to Produce Covid-19 Vaccines in Africa; Drugmakers face growing pressure from U.S., Europe to address global vaccine inequity
Alexandra Wexler and Jared S. Hopkins – FT
Pfizer Inc. and its partner BioNTech SE said Wednesday that their Covid-19 vaccine will be partly produced in South Africa from next year, joining a halting effort to manufacture shots on a continent that has been left behind in the global fight against the pandemic.
New York to Require Vaccination or Weekly Testing for City Health Workers; The new city policy takes aim at improving vaccination rates at public hospitals. Around 60 percent of workers in the cityâEUR™s public hospital system are vaccinated.
Joseph Goldstein – NY Times
For months, Mayor Bill de Blasio has been reluctant to make coronavirus vaccinations mandatory for anyone, hoping that encouragement, convenience and persuasion would be enough.
Covid Live Updates: Pfizer Will Bottle Vaccine in Africa, Leaving Know-How in Europe
With only 1.5 percent of the continentâEUR™s population vaccinated, the move should bolster supplies. But the lack of a fuller technology transfer disappointed health experts. A new study suggested that a single dose of Johnson & JohnsonâEUR™s vaccine may be less effective against the fast-spreading Delta variant.
England Is âEUR˜Free.âEUR™ And in Total Chaos.
Tanya Gold – NY Times
England, we are told, is free. On Monday the government lifted the countryâEUR™s remaining Covid restrictions âEUR” on social distancing, on face masks, on numbers for gatherings, the lot âEUR” effectively leaving protection from the coronavirus to vaccinations and, er, the goddess of chance. (Scotland, Wales and Northern Ireland, the devolved nations, have sensibly chosen to retain some restrictions.)
The Anti-Vaccine Movement Is Much Bigger Than Facebook
Farhad Manjoo – NY Times
Late last week President Biden achieved something IâEUR™d thought impossible: He got me to feel bad for Mark Zuckerberg. Sure, it was only a little bad, but thatâEUR™s no small feat. As I spent the weekend brushing up on funereal dirges to play on my tiny violin, I couldnâEUR™t help but marvel at the presidentâEUR™s rhetorical shoddiness regarding FacebookâEUR™s role in AmericansâEUR™ refusal to get vaccinated, the most important obstacle to the nationâEUR™s full recovery from the pandemic.
Exchanges, OTC and Clearing
Passive Investing and ETF Benchmark Transitions Drive Strong Growth in ICEâEUR™s Index Business
ICE Expands its footprint with new fixed income, thematic and ESG-focused indices
ETFs totaling $60 billion in AUM announce transitions to ICE Indices in 2021
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology and market infrastructure, today announced strong growth in its index business in the first half of 2021. This was driven by continued growth in assets under management (AUM) in ETFs using ICE fixed income, thematic and ESG-focused indices, including an increasing number of established fixed income and equity ETFs – equivalent to over $60 billion in AUM – switching their underlying benchmarks to ICE indices.
DTCC enhances ETF solution with automated collateral management process; New solution at DTCC includes fixed income ETF capabilities and a no-touch process which provides increased operational efficiency and balance sheet relief.
Wesley Bray – The Trade
The Depository Trust & Clearing CorporationâEUR™s (DTCC) US clearing subsidiary has launched an automated ETF solution that simplifies the collateral management process and adds new fixed-income ETF capabilities.
Nasdaq spins out private market platform with SVB, Citi, Goldman Sachs and Morgan Stanley; SVB, Citi, Goldman Sachs and Morgan Stanley have invested in the Nasdaq private market platform, which will become an independent entity.
Hayley McDowell – The Trade
Exchange group Nasdaq has confirmed it will spin out its platform for institutional trading of private company stock in a major deal with several US banks. Citi, Goldman Sachs, Morgan Stanley and Silicon Valley Bank (SVB) have made strategic investments in the private market platform, which Nasdaq said will become an independent company. Terms of the investments were not disclosed.
Passive Liquidity Protection: Deferral times and launch dates for OINX
With this circular, we would like to provide you with further information about the planned rollout of the Passive Liquidity Protection (PLP) for Eurex index options, which is scheduled for September 2021.
S&P Global Platts and ICE Issue Joint Paper and Open Market Consultations on the Evolution of the Brent Complex
Intercontinental Exchange, Inc.
S&P Global Platts (“Platts”), the leading independent provider of information, analytics, and benchmark prices for the commodities and energy markets, and Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, today published a joint white paper and launched simultaneous consultations on the evolution of the Brent complex, which includes Dated Brent, Cash Brent, and ICE Brent Crude Oil futures.
Nasdaq Reports Second Quarter 2021 Results; Delivers 21% Increase in Revenue Compared to Prior Year
Second quarter 2021 net revenues1 were $846 million, an increase of 21% over the second quarter of 2020; Compared to the prior year period, Solutions segments2 revenues increased 26% while Market Services revenues increased 13%; Nasdaq Reports Second Quarter 2021 Results; Delivers 21% Increase in Revenue Compared to Prior Year; Second quarter 2021 net revenues1 were $846 million, an increase of 21% over the second quarter of 2020. Compared to the prior year period, Solutions segments2 revenues increased 26% while Market Services revenues increased 13%; During the first six months of 2021, the company returned $579 million of cash to investors, including $410 million in share repurchases and $169 million in dividends.
Nasdaq, Inc. (Nasdaq: NDAQ) today reported financial results for the second quarter of 2021.
Nasdaq Announces Quarterly Dividend of $0.54 Per Share
The Board of Directors of Nasdaq, Inc. (Nasdaq: NDAQ) has declared a regular quarterly dividend of $0.54 per share on the company’s outstanding common stock. The dividend is payable on September 24, 2021 to shareholders of record at the close of business on September 10, 2021. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by the Board of Directors.
TriOptima Compresses SGD 1.7 Trillion Notional at LCH In H1 2021
TriOptima, a leading infrastructure service that lowers costs and mitigates risk in OTC derivatives markets, today announced that it reduced the total Singapore dollars notional outstanding at LCH by 50% by compressing SGD 1.7T in interest rate derivatives H1 2021.
Administrative Amendments to the Aluminum MW U.S. Transaction Premium Platts (25MT) Futures Contract
Initial Listing of the 2-Year, 5-Year, 10-Year, and 30-Year Micro Treasury Yield Futures Contracts
Amendments to CME and CBOT Rule 524. and Certain CME and CBOT Equity Index Futures Contracts Regarding Basis at Trade Index Close (âEURœBTICâEUR) Transactions, Price Assignment and Disruption Event Procedures
Performance Bond Requirements: Energy and Interest Rate Margins – Effective July 21, 2021
Notice of Summary Actions
MEMBER FIRM: BARCLAYS CAPITAL, INC.
CBOT RULE VIOLATION: Rule 536.D. Customer Type Indicator (CTI) Code (In pertinent part)
Each clearing member must identify each transaction 1) executed on the trading floor, 2) executed on the Globex platform or 3) privately negotiated as a block trade pursuant to Rule 526 or an EFRP pursuant to Rule 538 on the record of the transaction submitted to the Exchange with the correct customer type indicator (CTI) code.
PENALTY: On June 30, 2021, Barclays Capital, Inc., pursuant to Rule 512 (âEURœReporting InfractionsâEUR), was issued a $1,000 fine for its violation of Rule 536.D.
AIR Futures Update – New Contracts Launching July 26
OTC FX Production Advisory âEUR” Release 22 USD/CHF Product Impact – Effective July 20, 2021
OTC IRS Production Advisory âEUR” Release 22: EUR-â‚¬STR and CHF-SARON Clearing
Amendments to CME and CBOT Rule 524. and Certain CME and CBOT Equity Index Futures Contracts Regarding Basis at Trade Index Close (“BTIC”) Transactions, Price Assignment and Disruption Event Procedures
New Product Summary: Initial Listing of the 2-Year, 5-Year, 10-Year, and 30-Year Micro Treasury Yield Futures Contracts – Effective August 16, 2021
Arcadier and Exberry partner to deliver deep-tech trading infrastructure for marketplaces; Exberry provides its robust infrastructure to enhance user capabilities and price discovery for ArcadierâEUR™s marketplace builder platform
Exberry, the marketplace and exchange technology pioneer, has partnered with Arcadier, the worldâEUR™s fastest-growing marketplace builder company, to provide technology for the next generation of marketplaces. Many marketplace clients today are looking for a turnkey solution that is quick and easy to deploy, while still having all of the robust features of an established exchange. The growing trend of alternative marketplaces stem from the fact that businesses and consumers today are looking for a more transparent way to make purchases and smarter buying decisions. They want control and choice, to pay a fair price by placing a bid or reserve on a product or service, and to purchase at that set price. At the same time, producers are looking to get fast and accurate data on demand and market prices from the platform.
China Fines Tencent, Tech Giants Over Child Exploitation
Zheping Huang – Bloomberg
Regulator vows to tackle online education, animation issues; Tech giants are under scrutiny over antitrust, data security
Chinese internet regulators slapped fines on technology firms including Tencent Holdings Ltd. and Alibaba Group Holding Ltd. for spreading sexually suggestive content involving children.
US banks need better approach to fintech, says ex-Goldman executive; Partnerships and acquisitions are needed to keep up with technological innovation, says Sheila Patel
Imani Moise – FT
The banking industry needs to take a different approach to building new technology if it is to keep up with innovation at fintech companies, according to the former head of Goldman Sachs Asset Management, Sheila Patel.
Paytm and Zomato IPOs Point to Coming Wave of Indian Tech Listings; Many online businesses have thrived despite the pandemic and enjoy strong brand recognition
Shefali Anand – WSJ
India is gearing up for tech IPOs, including two worth more than $1 billion, as startups look to tap a stock market that has proved resilient despite Covid-19. The initial public offerings reflect the maturing of a generation of e-commerce and digital-economy companies, bankers say, many of which have grown rapidly during the pandemic as well-off city-dwellers turn to them when purchasing products from milk to medicines.
Fidelity deploys and invests in cloud-based data platform to streamline legacy data; Following a long-standing partnership, Fidelity International will adopt the FINBOURNE LUSID platform and has made a strategic investment in the FinTech firm.
Hayley McDowell – The Trade
Fidelity International has invested in a cloud-based data platform that will see the FinTech firm drive the asset managerâEUR™s data strategy following a long-standing partnership.
Prime Trust Achieves ISO/IEC 27001:2013 Certification for Managing Information Security and Operational Risk
ISO/IEC 27001:2013 Certification Demonstrates Adherence to Financial Industry’s Most Stringent International Information-Security Standards
Prime Trust, the one-stop shop for financial infrastructure for fintech innovators, recently earned its ISO/IEC 27001:2013 designation, certifying that the company meets the financial industry’s most stringent information security-management standards.
Blockchain or Blockbuster? The Choice Facing Financial Incumbents; The old-guard financial industry is aware of the competitive threat from decentralized finance, but it’s not moving fast enough to catch up.
Jerald David – Coindesk
Looking back at industries that have been disrupted by the introduction of new technology âEUR” media, e-commerce, travel âEUR” the transformation has affected virtually every aspect of that industry, from consumer behavior to infrastructure. We are in the midst of seeing this transformation occur with the introduction of blockchain technology to financial services. While most media coverage has focused on digital assets themselves, institutional infrastructure and financial intermediaries are being scrutinized and uprooted.
The Cybersecurity 202: RussiaâEUR™s the capital of ransomware but itâEUR™s not the only player
Joseph Marks – The Washington Post
Is China primed to become a global hot spot for ransomware and other cybercrimes?
That question was sparked by a White House statement this week accusing BeijingâEUR™s Ministry of State Security of contracting with criminal gangs for some of its hacking work and turning a blind eye to their cybercrimes for profit.
Cybersecurity: DHS escalates mandates for key US pipelines in wake of ransomware attack
Geneva Sands – CNN
The Department of Homeland Security mandated additional cybersecurity measures this week for critical US pipelines, a move meant to protect against ransomware and other known threats months after a crippling cyberattack on one of America’s most important pipelines.
On Monday, the Transportation Security Administration, a component of DHS, issued its second “security directive” for designated critical pipelines that transport hazardous liquids and natural gas.
EXCLUSIVE BT takes multi-million pound stake in cyber firm Safe Security
Paul Sandle – Reuters
British telecoms group BT (BT.L) has taken a multi-million pound stake in Silicon Valley cyber risk management firm Safe Security, underlining its ambition to target growth in the sector, the company said on Wednesday.
Biden to convene private sector leaders for cybersecurity talks in August
President Joe Biden and senior U.S. officials will meet private sector leaders on Aug. 25 to discuss ways to beef up cybersecurity, a White House spokesperson said on Wednesday, underscoring the need for collective action.
FTX Trading Ltd. Closes $900M Series B Round — Largest Raise in Crypto Exchange History; Latest Round Values the Company at $18 Billion with Funds Being Used to Expand Presence and Make Strategic Investments
FTX Trading Ltd.
FTX Trading Ltd. (“FTX.COM”, “FTX” or “The Company”), owner and operator of FTX.COM, a cryptocurrency exchange, today announced the closing of a $900 million Series B fundraise, valuing the Company at $18 billion. This new financing round will expand FTX’s global presence, accelerate the Company’s growth, and represents one of the largest raises for a crypto company. Over 60 investors participated in the $900M Series B, including Paradigm, Sequoia Capital, Thoma Bravo, SoftBank, Ribbit Capital, Insight Partners, Third Point, Lightspeed Venture Partners, Altimeter, BOND, NEA, Coinbase Ventures, Willoughby Capital, 40North, Senator Investment Group, Sino Global Capital, Multicoin, the Paul Tudor Jones family, Izzy Englander, Alan Howard, VanEck, Hudson River Trading, and Circle.
The time to embrace central bank digital currencies is now; Money must adapt to an era of new technologyâEUR” but it has to work for society as a whole
Martin Wolf – FT
How should central banks respond to digital technology? This has become an urgent question. The answer is partly that both they and governments have to get a grip on the new wild west of private money. But it is also that they must now introduce digital currencies of their own.
Bitcoin Alert: Biggest Private Crypto Deal Ever Is Closed
Nina Bambysheva – Forbes
Crypto derivatives exchange FTX has just raised the largest private equity round in the industryâEUR™s history, nearly doubling the previous record. Today, FTX Trading Ltd., owner and operator of the exchange, announced the $900 million Series B fundraise at an $18 billion valuation âEUR” a major milestone for FTX, which was worth only $1.2 billion a year ago.
In total, over 60 investors participated in the fundraise including Paradigm, Sequoia Capital, Ribbit Capital, Third Point, Lightspeed Venture Partners, Coinbase Ventures, Softbank, Sino Global Capital, Multicoin Capital, the Paul Tudor Jones family, VanEck, Circle and hedge funders Izzy Englander and Alan Howard. Instead of relying on an investment banker to organize the round FTXâEUR™s team worked directly with investors Paradigm, Ribbit, and BTIG to close the deal.
Trading firm of richest crypto billionaire reveals buying âEUR˜a lot moreâEUR™ Bitcoin below $30K
Yashu Gola – Cointelegraph
BitcoinâEUR™s (BTC) painful plunge below $30,000 on Tuesday turned into a so-called âEURœbuy the dipâEUR opportunity for Alameda Research, a Hong Kong-based quantitative trading firm and liquidity solutions firm headed by FTX CEO and founder Sam Bankman-Fried.
Quantitative trader Sam Trabucco revealed late Tuesday that the company purchased Bitcoin during its latest price decline, adding that the companyâEUR™s cautious strategy to go long BTC/USD surfaced out of at least three âEURœrecoveryâEUR catalysts: a potential end to the ongoing crypto FUD (China ban, Grayscale epic unlock, etc.), the stock marketâEUR™s intraday recovery, and weaker long liquidations in the derivatives market.
Bitcoin And Dogecoin Are Braced For An Elon Musk Bombshell After Extreme $100 Billion Crypto Price Swings
Billy Bambrough – Forbes
Bitcoin and cryptocurrency prices have swung wildly over the last couple of days, with bitcoin dipping under $30,000 before bouncing back.
Extreme bitcoin price swings have been outmatched by the meme-based dogecoin, Elon Musk’s pet project that’s rocketed into the cryptocurrency top ten by value this year (subscribe now to Forbes’ CryptoAsset & Blockchain Advisor and discover crypto blockbusters poised for 1,000% gains).
No, Jackson Palmer, you are wrong about crypto
John Mac Ghlionn – Cointelegraph
15 years ago, the social media application Twitter was launched. You might have heard of it, itâEUR™s pretty big. Initially, the microblogging and social networking service was a friendly place, packed full of helpful articles and adorable videos. In a recent article, aptly titled âEUR˜How Twitter ruined everything,âEUR™ the author Douglas Murray wrote, somewhat nostalgically, âEURœIt all started out so well.” Jack DorseyâEUR™s brainchild was once, believe it or not, fun. People used the platform to say wacky things, but fun wacky, not QAnon wacky. Oh, how times have changed.
âEUR˜A form of brainwashingâEUR™: why Trump voters are refusing to get a vaccine; Pace of inoculations in the US is starkly correlated with politics
Nikou Asgari – FT
In downtown Little Rock, a chorus echoes around the room at Willy DâEUR™s Rock & Roll Piano Bar as groups of friends clutching beers and each other sing along to the soul hit âEURœStand By MeâEUR. Yet far from standing together, the capital of Arkansas is deeply divided over how to deal with a resurgence of Covid-19. Cases are increasing, hospitals are filling up and health officials are struggling to convince residents in the city and across the state to get vaccinated.
Trump ally Tom Barrack charged with illegally acting as agent of the UAE; Former chief executive of investment group Colony Capital arrested in California
Mark Vandevelde – FT
Tom Barrack, the former chief executive of Colony Capital who was one of Donald TrumpâEUR™s earliest supporters in the 2016 presidential campaign, has been arrested and charged with illegally acting as an agent of the United Arab Emirates.
Biden nominates Google critic to lead DoJ antitrust division; Lawyer Jonathan Kanter had been championed by progressives urging tougher competition enforcement
Kiran Stacey – FT
Joe Biden will nominate Jonathan Kanter, who has represented some of GoogleâEUR™s fiercest rivals, as one of his administrationâEUR™s top competition law enforcers, raising another potential challenge to Silicon ValleyâEUR™s largest companies.
âEUR˜I have nothing to lose any moreâEUR™: Iranians protest over water shortages; Demonstrations follow dissent against power cuts and pose challenge for incoming president Ebrahim Raisi
Najmeh Bozorgmehr – FT
Over the past week, protesters have taken to the streets in south-western Iran, chanting anti-regime slogans as they demand greater access to water for drinking, their farmlands and their cattle.
US signals it is nearing deal with Germany on Nord Stream 2; US official cites âEUR˜progressâEUR™ on resolving dispute to ensure âEUR˜Russia cannot weaponise energy flowsâEUR™
James Politi – FT
The US signalled it was close to a deal with Germany to resolve a longstanding dispute over the Nord Stream 2 pipeline, including a pledge to punish Russia if it were to use energy as a weapon against its neighbours.
Circle Sets Aside $10.4 Million to Settle SEC Case on Poloniex; In an SEC filing, the cryptocurrency operator also disclosed it is facing investigations by OFAC on its discontinued Poloniex business
Mengqi Sun – WSJ
Cryptocurrency operator Circle Internet Financial Ltd. said it has set aside more than $10 million to settle a case brought by the U.S. Securities and Exchange Commission against Poloniex LLC, its discontinued crypto exchange business, according to a regulatory filing.
ASIC obtains orders to wind up Semantic Software Asia Pacific Limited
On 15 July 2021, the New South Wales Supreme Court ordered that Semantic Software Asia Pacific Limited (Semantic) be wound up on just and equitable grounds, and that liquidators be appointed. The Court orders were made with the consent of all parties.
ASIC bans Gold Coast adviser and cancels AFS licence of Trade Wind Financial Services
ASIC has banned former financial adviser Adam John Bevan for five years from providing financial services, controlling a financial services business, or performing any function in relation to carrying on a financial services business.
ASIC consults on draft guidance for the hawking reforms
ASIC is consulting on proposed updates to its guidance on the prohibition on the hawking of financial products. ASICâEUR™s updated regulatory guide reflects the reforms to the anti-hawking regime under the Financial Sector Reform (Hayne Royal Commission Response) Act 2020, which is due to commence on 5 October 2021.
SEC Charges Retailer and Former CEO for Accounting, Reporting, and Control Failures
The Securities and Exchange Commission today announced that Fort Worth, Texas, specialty retailer Tandy Leather Factory Inc. and its former chief executive officer Shannon Greene have agreed to settle charges for accounting, reporting, and control failures that led to a multi-year restatement of the companyâEUR™s financial statements.
ESMA Highlights Areas For Improvement In Compliance With Mifid Ii Suitability Requirements
The European Securities and Markets Authority (ESMA), the EUâEUR™s securities markets regulator, today publishes the results of the 2020 Common Supervisory Action (CSA) on MiFID II suitability requirements.
The FCA and the Bank of England encourage market participants in a switch to RFRs in the LIBOR cross-currency swaps market from 21 September
Following close engagement with authorities across LIBOR jurisdictions and with market participants, the FCA and Bank of England support and encourage liquidity providers in the LIBOR cross-currency swaps market to adopt new quoting conventions for interdealer trading based on risk-free rates (RFRs) instead of LIBOR from 21 September this year. This is to facilitate a further shift in market liquidity toward RFRs, bringing benefits for a wide range of users as they move away from LIBOR.
Information for firms who use certain exemptions to the Financial Promotions Order
Following onshoring changes made to The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the FPO), the definition of Relevant Market inadvertently no longer includes relevant UK markets.
Investing and Trading
âEUR˜Forceful for longerâEUR™: Investors bet ECB bond buying is here to stay; Central bankâEUR™s new inflation target sets stage for lengthier period of loose monetary policy
Martin Arnold and Tommy Stubbington – FT
Investors are betting the European Central BankâEUR™s new strategy means it will keep buying bonds for longer, driving yields in the eurozone lower. But the central bank still has its work cut out to convince markets it can hit its revised inflation target.
Markets havenâEUR™t even begun to reflect China-US decoupling risks; Sell-off in Didi shares is a clear warning of the dichotomy faced by investors
George Magnus – FT
Investors have been given a clear warning of the decoupling dichotomy between China and the US running through global capital markets.
Beware the siren call of investment advertising; Whether itâEUR™s crypto or equity funds, savers must read the fine print and weigh the risks
Hugo Cox – FT
When is an advertisement misleading? âEURœIf youâEUR™re seeing Bitcoin on the side of a bus, itâEUR™s time to buy,âEUR read one plastered on the side of a London double-decker by Luno, a cryptocurrency trading platform recently.
BlackRock-led âEUR˜Big ThreeâEUR™ may forestall chaos in stock markets
Sam Potter – Financial Planning
Critics who assail the growing influence of index giants like BlackRock Inc. may be overlooking their power to prevent a stock-market disaster. In a paper published this month, academics from America and China show that institutions with notable holdings in multiple firms across industries are less likely to panic sell.
Environmental, Social and Corporate Governance
Chinese City Hit by Deadly Floods Suffered Heatwaves Days Before; The devastation in Zhengzhou is the latest in a series of extreme weather events globally that are making the risks of climate change more tangible.
Just days before devastating floods hit the central Chinese city of Zhengzhou, its province of Henan endured heatwaves that swept across several industrial regions, threatening power outages.
Covid-19 Has Dimmed the Clean Power Market; A side effect of the pandemic has been a dent in demand.
Tim Quinson – Bloomberg
For all the lives lost and economic damage done by the coronavirus pandemic, itâEUR™s also managed to hurt efforts to combat climate change.
China must cut emissions to avoid climate âEUR˜chaosâEUR™, warns US envoy Kerry; AmericaâEUR™s climate tsar says Biden administration will âEUR˜consultâEUR™ on a potential carbon border tax
Leslie Hook – FT
China must cut emissions sooner if the planet is to avoid climate âEURœchaosâEUR, US climate envoy John Kerry has warned, telling the Financial Times that he was keen to speak to Beijing about a possible carbon border tax.
Insurers are falling short in tackling climate risk, warns top policy adviser; Industry pressed to show more urgency in making its underwriting policies greener
Ian Smith – FT
Insurers have not gone far enough in overhauling their underwriting practices to respond to climate change, with US groups the furthest behind, according to the head of a joint initiative between the industry, World Bank and UN.
Corporate values matter but they must go beyond buzzwords; Vague lofty principles are all very well but customers and shareholders are holding companies to account
Brooke Masters – FT
Official statements of corporate values are often a maddening mix of hokum and gibberish. When the Financial TimesâEUR™ former parent company adopted âEURœefficacyâEUR as one of its top goals, the sceptical newsroom made fun of the decision for days.
Shell appeals against Dutch emissions order; Energy major says court unfairly singled it out in decision to impose more stringent carbon target
David Sheppard – FT
Royal Dutch Shell has appealed against a Dutch court order that it must step up the pace of its global emissions cuts, arguing the company has been unfairly singled out and that tackling climate change requires âEURœco-ordinationâEUR.
Carlyle Launches Renewable-Energy Infrastructure Unit; New venture is the latest move in Wall StreetâEUR™s sustainable-investing race
Matt Wirz – WSJ
Private-equity giant Carlyle Group Inc. is launching a company to develop renewable-power-generation and storage projects in a push to reorient its energy business toward sustainable investments.
Credit Suisse Exodus in Full Swing as More Senior Bankers Leave
Gillian Tan – Bloomberg
Swiss bank copes with aftermath of Archegos, Greensill losses; Max Mesny departs to be a partner at Perella Weinberg
Credit Suisse Group AG is losing four additional senior bankers in the aftermath of scandals involving Archegos Capital Management and Greensill Capital, and has now suffered more than 30 defections.
Julius Baer Posts Record Profit as Client Inflows Double
Marion Halftermeyer – Bloomberg
Assets under management reach record 486 billion francs; CEO Rickenbacher is moving past a series of setbacks
Julius Baer Group AG reported its best first half on record as rising markets and client inflows fueled income from fees and commissions.
Deutsche Bank Raises Pay for Juniors to Keep Up With Rivals
Jennifer Surane and Steven Arons – Bloomberg
First-year analysts to make $100,000 following increase; Banks including Citigroup, Barclays have been increasing pay
Deutsche Bank AG is boosting the amount it pays investment-banking analysts as Wall Street contends with record deal flow and its impact on its most junior workers.
JP Morgan Asset Management APAC trading head to build data science team in expanded role; A new data science team will be established at JP Morgan Asset Management, led by the firmâEUR™s Asia Pacific head of equity trading who expands his role as head of data science.
Hayley McDowell – The Trade
The head of equity trading for Asia Pacific (APAC) at JP Morgan Asset Management has taken on an expanded role that will see him build a new data science team for the business in the region.
Rusal May Curb Aluminum Exports Once Russian Tax Kicks In
Yuliya Fedorinova – Bloomberg
Export duty will make some sales unprofitable, company says; Rusal may cut sales by hundreds of thousands tons this year
RussiaâEUR™s United Co. Rusal International PJSC, the biggest aluminum producer outside China, may curb exports of the metal once duties on shipments come into effect next month.
EuropeâEUR™s Regional Debt Market Is on a Fast Track Back to Normal
Priscila Azevedo Rocha – Bloomberg
Regional debt sales are expected to fall back to 2019 levels; State bonds tend to offer a little more yield than sovereigns
EuropeâEUR™s market for state and local debt is on its way back to pre-pandemic size. As businesses reopen and tax revenues fill government coffers, finance officials are winding down their emergency programs and reining in expansive borrowing. Bond sales have already dropped dramatically from last yearâEUR™s peak, and experts at JPMorgan Chase & Co. and UniCredit Bank predict the market will soon return to levels similar to 2019.
China flooding kills a dozen people in industrial centre Zhengzhou; City that is home to worldâEUR™s largest iPhone assembly plant suffers âEUR˜once in a millenniumâEUR™ event
Christian Shepherd – FT
Severe flooding has killed at least a dozen people in Zhengzhou, the central Chinese city that is home to the worldâEUR™s largest iPhone assembly plant, as record rainfall threatened to burst through nearby dams.
Rio Tinto backs environmental study into mine that triggered civil war; Clean-up costs related to shuttered Bougainville project could run into billions of dollars
Jamie Smyth – FT
Rio Tinto has agreed to co-fund a study into the environmental and human rights impact of a shuttered mine in the South Pacific that sparked a civil war, which could lay out clean-up costs amounting to billions of dollars.
The High Financial Price Paid by Victims of Sexual Harassment; A new study tries to quantify the cost in lost earningsâEUR”and lost opportunity.
Bryce Covert – Bloomberg
While itâEUR™s long been clear that victims of sexual harassment often face retaliation that can damage their careers, the financial cost they shoulder has been difficult to quantify. To put a number on it, a study published Wednesday by TimeâEUR™s Up and the Institute for WomenâEUR™s Policy Research (IWPR), âEURœPaying Today and Tomorrow,âEUR sought to nail down what people who had been harassed ended up paying. Victims interviewed faced expenses anywhere from tens of thousands to hundreds of thousands of dollars.
US workers demand a better deal: âEUR˜There are possibilities everywhereâEUR™; Labour shortages have given employees the upper hand in negotiations with companies
Taylor Nicole Rogers – FT
Becoming a real estate appraiser in the US normally requires dozens of hours of specialised training. But Roland Statulevicius managed to land a job in February with nothing more than a certificate from an online course.
For Home Buyers, Length of Commute Drops in Importance, New Data Shows; During the pandemic, buyers in high-cost markets have been willing to trade longer commutes for lower prices
Nicole Friedman – WSJ
Home buyers during the pandemic have been willing to take on long commutes in exchange for lower prices, a new analysis shows. In some of the nationâEUR™s most expensive metro areas, home prices rose faster in areas with longer morning commutes to business districts compared with neighborhoods with short commutes, according to an analysis from Zillow Group Inc.