Robinhood User Says $300,000 Restored From Hack, Then Taken Back

Dec 23, 2020

$18,961/$300,000 (6.3%)

Observations & Insight

Editor’s Note:
JLN Options will not be published during the holidays. Our next JLN Options newsletter will be delivered on Monday, January 4, 2021. We wish everyone a great holiday season and look forward to next year (we are happy to be done with this one). All the best from everyone at John Lothian News!

Lead Stories

Robinhood User Says $300,000 Restored From Hack, Then Taken Back
Sophie Alexander and Anders Melin – Bloomberg
Customer says account attacked, money lost in options trades; Malware is an issue in a small number of cases, company says
Gangti Zhu, a Maryland retiree, says he put almost his entire life savings into a Robinhood Markets account this year, only to lose about $300,000 in a hack. He describes the same painstaking experience that other users have encountered: a panicked search for a phone number, a slew of emails after finding there’s no emergency line and then relief when the money was finally returned to his account.

*****MR: Apparently this Robinhood takes from the rich and gives to themselves.

British Pound (GBP USD) Brexit Jolt Will Be Wilder Now That Liquidity Is Thin
William Shaw and Vassilis Karamanis – Bloomberg
The pound soared and U.K. bonds fell on mounting optimism that Britain and the European Union are finally closing in on a Brexit trade agreement.
Sterling advanced by as much as 1.6% to $1.3571, the biggest intraday gain in more than a week, following a report that negotiators are increasingly hopeful an accord could be struck as soon as Wednesday. The yield on 10-year government bonds was poised for the biggest rise since March, climbing 11 basis points to 0.30%.

A Hawkish Central Bank Gives Norway’s Krone a Chance at Comeback
Love Liman – Bloomberg
Next year could be when the Norwegian krone turns from zero to hero. Norges Bank’s hawkish turn may boost the currency after one of the year’s worst performances in the Group-of-10, HSBC Holdings Plc and Danske Bank A/S predict. The central bank has said interest rates may rise from the first half of 2022, in sharp contrast with the Federal Reserve and other authorities. “Any sign of a more hawkish monetary policy divergence should be jumped upon by foreign-exchange markets looking for normalization and yield,” HSBC senior foreign-exchange strategist Dominic Bunning wrote in a note to clients.

Exchanges and Clearing

Exchange operators face scrutiny after bout of outages in 2020
Philip Stafford – Financial Times
Stock exchanges began the year with praise for their resilience during the pandemic turbulence but are ending it with their reliability under scrutiny.
A series of high-profile outages in the second half of 2020 has put the spotlight on operators of the financial infrastructure that underlies global markets. The bumpy end of the year marks a stark contrast to the spring, when exchanges were commended by regulators for withstanding an unprecedented surge of activity at the height of the March ructions.

CME Group Inc. Announces Fourth-Quarter and Year-End 2020 Earnings Release, Conference Call
CME Group
CME Group Inc. will announce earnings for the fourth quarter and full year of 2020 before the markets open on Wednesday, February 10, 2021. Written highlights for the quarter and year will be posted on the company’s website at 6:00 a.m. Central Time, the same time it provides its earnings press release. The company will hold an investor conference call that day at 7:30 a.m. Central Time, at which time company executives will take analysts’ questions.

CME STP Notices: December 23, 2020
CME Group
To CME STP Customers
From Global Market Solutions & Services (GMSS)
# 20201223
Notice Date 23 December 2020

CME Globex Notices: December 21, 2020
CME Group
To CME Globex and Market Data Customers
From Global Market Solutions & Services (GMSS)
# 20201221
Notice Date 23 December 2020

Regulation & Enforcement

To 2021 and beyond – a regulator’s perspective
I attended and spoke at several conferences and panel discussions in November. While these were different events put together by organisations including Global Compact Network Singapore, the Financial Times, Association of Corporate Treasurers, Singapore Institute of Directors, and REIT Association of Singapore, they all had a similar link – COVID-19. COVID-19 has swept across the globe, broken up supply chains, shuttered businesses and rendered masses of individuals jobless. The pandemic has become a common thread for discussion and introspection across typically unconnected events.

During the period between January 1, 2018 and May 17, 2020 JonesTrading Institutional Services LLC violated:
(i) NYSE Arca Rule 11.1, which requires adherence to good business practices, with respect
to its handling of certain customer options orders; (ii) NYSE Arca Rules 2.28 by failing to
create, maintain, and preserve accurate records of cancellations or adjustments to
executions obtained for customer options orders; and (iii) NYSE Arca Rule 11.18 by failing
to establish and maintain adequate supervisory systems and written procedures that were
reasonably designed to ensure compliance with applicable laws and rules. Consent to a
censure and a $225,000 fine.


2020 annual trends in futures and options trading
This webinar will highlight the main trends in trading activity in 2020 in the global exchange-traded derivatives markets, with category and regional breakdowns as well as exchange and contract rankings.
Date/Time: Wednesday, 27 January 2021 | 10:30 a.m. – 11:30 a.m. ET

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