SEC GameStop Report Debunks Conspiracies, Backs Gensler Plan

Oct 19, 2021

First Read

$53,806/$300,000 (17.9%)

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FIA Tech’s Atlantis Ready for More Options Brokers
John Lothian – John Lothian News

Give-up Settlement and Payment System Improves Efficiency, Speeds up Payments

FIA Tech is trying to solve a problem for options brokers with a solution that’s worked for futures brokers and exchange-traded derivatives. That problem is improving the efficiency of give-ups and take-ins reconciliation, settlement and payments.

In July, FIA Tech announced the expansion of its Atlantis service to help options brokers settle give-up trades faster and get paid sooner, while freeing up human resources thrown at this complex problem. One hundred million contracts a month are processed via Atlantis, which is expanding into options in a two-part process.

FIA Tech was launched in 2007 by the Futures Industry Association and recently took on a $44 million investment from 10 leading clearing firms to fund the strategic growth of the organization.

Read more of the interview HERE.

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Hits & Takes
John Lothian & JLN Staff

Bruce Cleland, the retired CEO and president of long-running Commodity Trading Advisor and Commodity Pool Operator Campbell & Company, Inc. has died at the age of 73. — Baltimore Sun

Here is your crazy statistic of the day. Nearly 900,000 accounts traded shares of Gamestop in a single day amid the mania in January that saw the price of the shares jump 2,700 percent from January 8 to January 27. The FT reported these numbers in a story below.

HKEX reported the MSCI China A 50 index futures reached greater than$200 million in notional traded value in its second day of trading. — LinkedIn

Last week was LME Week 2021. Normally the week is concluded with the LME Dinner, which can see 2,000 people attend. This year was more intimate, LME said, with a little more than 850 people present.

My former Price Futures Group colleague, who is a neighbor in Elmhurst, Illinois, is in the news for claiming Marxist indoctrination is occurring in our schools in a story in the Elmhurst Patch titled, “Resident Alleges Marxist Lessons At Elmhurst Schools.” The story says: “During public comments, resident Tom Chavez said his family was previously happy with Elmhurst School District 205, but that is no longer the case. He said he never received the memo that critical race theory and Marxist ideology had been incorporated into the lesson plans in the schools.” — Patch.com

This is a common complaint at school boards across the country as the cultural and political disagreements have moved to local school boards. I myself was indoctrinated in high school in a fiendish Bohemian manner involving reading Franz Kafka and for years had nightmares of turning into a large insect, or “ungeheures Ungeziefer.”

There were no new donations to the JLN MarketsWiki Education GoFundMe campaign. The JLN Productions raffle for 5 minutes of video production only has two entries so far. Don’t miss the chance to enter by giving $100 or more to the campaign.

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

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ICE Mortgage Technology has announced that registration for its 10th annual user conference, Experience 2022, is open. The conference will be held in person from March 13 – 16, 2022 at Wynn Las Vegas in Las Vegas, Nevada. This year’s conference is the first in-person event since 2019 inviting attendees to once again participate in general sessions, hands-on training, breakout sessions and networking. You can go here for more information.~SR

The S&P Global Platts Nodal Trader Conference, which promises to explore “Power markets in 2021 and beyond” takes place at the end of the week, on October 21-22, at the New York Marriott Downtown. Conference organizers say planned topics include lessons from the Texas power outages; discussion of the environmental markets, including voluntary and non-voluntary carbon and emissions markets; ESG investment priorities; the role of financial traders; and compliance assessment. The keynote speaker is FERC Commissioner Allison Clements. More details and registration information are here.~SC

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Kenny Polcari – Open Outcry Traders History Project Part One
JohnLothianNews.com

When he was young, Kenny Polcari wanted to be in politics – preferably to eventually be president of the United States. But, he said, “Thank God none of that came true.”

When he was 19, he interned on the floor of the New York Stock Exchange. He knew nothing about the business and was from Boston rather than New York. At first he thought, “Who wants to move to New York City in the summer as a 19-year-old kid?” He was going to go back to Cape Cod and be a lifeguard. But he thought about it and did his homework and said, “What’s the worst that can happen?”

Watch the video »

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Bruce L. Cleland, retired president and CEO of Campbell & Co. who was also co-founder of Orokawa Foundation, dies
Frederick N. Rasmussen – Baltimore Sun
Bruce L. Cleland, retired president and CEO of Campbell & Co. and a co-founder with his wife of the Orokawa Foundation, died of head and neck cancer Friday at the University of Maryland St. Joseph Medical Center. The Ruxton resident was 73.
/bit.ly/2Z90g8p

*****Bruce Cleland was a stalwart of the futures industry and was inducted as a member of the FIA Hall of Fame in 2009.~JJL

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Almost 900,000 accounts traded GameStop at peak of meme stock craze; New data from US securities regulator shows number increased by 90 times in January
Madison Darbyshire – FT
Nearly 900,000 individual accounts traded shares of GameStop in a single day after a 90-fold increase at the height of the “meme stock” craze, according to a report by the US securities regulator. GameStop, a struggling video games retailer, became an emblem of the mania that gripped markets in January when its shares surged by 2,700 per cent in less than three weeks. Individual traders organised on online message boards and collectively unleashed furious rallies in certain stocks.
/on.ft.com/3n8b3rx

*****That is a mania, pure and simple.~JJL

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7-Foot Harambe Statue Stares Down Wall Street’s Charging Bull, Which Is Now Covered in Bananas
Gabriella Lozano – NBC New York
A 7-foot-tall bronze statue of Harambe, the Cincinnati Zoo gorilla that made national headlines in 2016 after picking up and carrying around a 3-year-old boy who climbed into its enclosure, then getting shot, appeared on Wall Street Monday. The giant gorilla was placed in Bowling Green Park, directly across from the famous Charging Bull statue, which was surrounded by 10,000 bananas (that will later be donated to local food banks and community fridges) to make a point about wealth disparity.
/bit.ly/2YUr0cp

*****This battle of bronze art is getting bananas.~JJL

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Encouraging innovation in derivatives markets
Walt Lukken, FIA President and CEO – LinkedIn
A few weeks ago, Deutsche Börse —the parent company of Europe’s largest derivatives exchange Eurex — joined a $19.4 million funding round for a fintech company called Wematch. This funding round was the latest example of an important trend in the derivatives industry: the infusion of innovation from fintech startups.
/bit.ly/3vqhRo4

*****I4Innovation!~JJL

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Monday’s Top Three
Our top story Monday was ICE Launches Transaction-Based Indices for Residential Mortgage Interest Rates, a press release from the Intercontinental Exchange. Second was CFTC Orders Tether and Bitfinex to Pay Fines Totaling $42.5 Million, a press release from the CFTC. And third was a Bloomberg story, The Man Who Turned a State Into America’s Switzerland, about South Dakota.

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MarketsWiki Stats
26,635 pages; 236,043 edits
MarketsWiki Statistics

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Lead Stories

SEC GameStop Report Debunks Conspiracies, Backs Gensler Plan
Ben Bain – Bloomberg
A highly anticipated U.S. Securities and Exchange Commission report on January’s frenzied GameStop Corp. trading debunked some conspiracy theories that have swirled around social media for months, while adding momentum to Chair Gary Gensler’s push to toughen rules.
/yhoo.it/3jfcyDb

SEC flags gamification of stock trades in long-awaited GameStop report
Brian Cheung – Yahoo Finance
The Securities and Exchange Commission released a 45-page report on Monday offering no specific policy recommendations following the early 2021 frenzy over GameStop (GME) stock. However, the report leaves the door open to “additional consideration” on matters like the “digital engagement practices” that brokerages may be using to glorify risky stock trading.
/yhoo.it/3n04lDU

U.S. SEC praises equity market structure, absolves short sellers in GameStop report
Katanga Johnson and Chris Prentice – Reuters
The U.S. markets functioned well during January’s GameStop volatility, while short selling was not the main cause of the unprecedented rise in the ‘meme stock,’ according to a long-awaited Securities and Exchange Commission (SEC) report.
/yhoo.it/3DSVTgp

The London Copper Market Is in a Historic Flash Squeeze
Bloomberg
The London copper market remains in a historic squeeze, as a critical shortfall in available inventories drives prices to near-record levels and leaves buyers paying huge premiums for spot metal.
/yhoo.it/2XuL5FY

France tests crypto assets in series of government bond deals; Digital currency issued by central bank was used in 10-month trial involving big banks and public debt office
Philip Stafford – FT
France has used digital assets and blockchain technology in a series of bond transactions, marking one of the most significant trials to date of cryptocurrencies in a leading established market.
/on.ft.com/3n0Mf4w

There’s another way to go public; The Toronto Stock Exchange opened a Chicago office late in 2019 and has been actively recruiting potential listings. The exchange’s local rep walks Crain’s Private Intelligence through the pros and cons.
H. Lee Murphy – Crain’s Chicago Business
For private companies seeking to take the public-company plunge, this has been an opportunistic time. The S&P 500 has been up 18 percent this year and the Nasdaq up 15 percent amid a race for new listings on U.S. exchanges. Business owners looking to bypass the red tape in hiring underwriters and touring Wall Street are turning to special-purpose-acquisition companies (SPACs) as a convenient going-public vehicle.
/bit.ly/3BVH4sX

U.S. SEC praises equity market structure, absolves short sellers in GameStop report
Katanga Johnson and Chris Prentice – Reuters
The U.S. markets functioned well during January’s GameStop volatility, while short selling was not the main cause of the unprecedented rise in the ‘meme stock,’ according to a long-awaited Securities and Exchange Commission (SEC) report.
/yhoo.it/3G0RSZt

SEC report on GameStop saga declines to rule on causes of trade restrictions
Chris Matthews – MarketWatch
The Securities and Exchange Commission issued a long-awaited report Monday on the decision by many stock brokers to restrict customers’ ability to purchase shares of GameStop Corp. and other meme stocks in January, but the document offers few clues about how the agency might change market-structure rules to prevent such incidents in the future and came to no definitive conclusions as to why those restrictions were made.
/yhoo.it/3jcnfX0

Powell Trading Controversy Is a False One. Why It Might Still Matter.
Lisa Beilfuss – Barron’s
The Twittersphere is abuzz, again, about Federal Reserve officials’ trading activity. This time, the controversy is a faux one. On Monday, the publication The American Prospect ran an article saying that Fed Chairman Jerome Powell sold between $1 million and $5 million worth of stock from his personal account on Oct. 1, 2020. The article said the sale of shares from a Vanguard Total Stock Market Index fund hadn’t been previously reported, and it said the sale occurred “right before the Dow Jones Industrial Average suffered a significant drop.” It also noted that some entries on Powell’s forms don’t provide exact transaction dates.
/bit.ly/3G2oz8Q

Lehman Brothers May Still Cash In on Its Own Big Short From 2009
Lucca de Paoli and Jeremy Hill – Bloomberg
Derivatives Lehman Brothers purchased to guard against defaults on the subprime-mortgage bonds that fueled the 2008 crisis could deliver a big pay-out more than 10 years after the bank’s collapse.
/yhoo.it/3DR9G7p

Bitcoin FOMO Fuels ETF Frenzy. Retail Traders May Still Miss Out
Katherine Greifeld – Bloomberg
Roll costs eat into futures-backed fund returns versus spot; For long-term investors, ‘this isn’t the optimal structure’
Traders waiting to pile into the first U.S. Bitcoin exchange-traded fund in the hopes of reaping big gains may risk missing out on even greater rewards. It all boils down to the shape of the Bitcoin futures curve. Longer-dated contracts typically trade at a premium to the spot price — a structure known as contango — because the cryptocurrency is inherently scarce and theoretically should rise, building in bullishness to the futures market. Funds that invest in futures must continually roll forward the exposure as the contracts expire, paying a fee to do so along the way. That process eats into returns, causing the ETF’s performance to become unmoored from the asset it tracks.
/bloom.bg/3DZ5tyB

What will replace Libor?
Marcus Morton – FT
The London interbank offered rate (Libor) has proved one of the UK’s most successful exports. But not everyone is going to feel thankful for that in the coming weeks and months. Since coming into widespread use in the 1970s, it has crept into every corner of finance, not just the derivatives market, where it underpins instruments like interest rate swaps, forward rate agreements and foreign currency options.
/bit.ly/3vqCD6Z

Does the SEC’s green light for a bitcoin ETF mark the peak?
John Detrixhe – Quartz
Does the SEC’s green light for a bitcoin ETF mark the peak? The first US exchange-traded fund for bitcoin is poised to start trading this week. Is it a watershed moment for crypto? If recent history is any guide, it could mark a peak: Two other “watershed” moments for digital assets were followed by losses.
/yhoo.it/2Z4iuYM

Day-Trader ‘BTFD’ Mantra Inspires Ticker for Planned Bitcoin ETF
Sam Potter and Katie Greifeld – Bloomberg
With the first U.S. Bitcoin futures ETF launching Tuesday and many more in the queue, one little-known asset manager is looking to stand out by directly tapping the lexicon of the day-trading crowd for its ticker.
/yhoo.it/3aSIqZO

Wellness Exchange

The pandemic isn’t going to come to a ‘hard and fast close,’ doctor warns
Adriana Belmonte – Yahoo Finance
Even though COVID cases and hospitalizations have been decreasing over the past month, one doctor doesn’t think the pandemic is ending any time soon. “The tricky thing is we all expected variants,” Dr. Ali Raja, a professor at Harvard Medical School, said on Yahoo Finance Live (video above). “But there was really no way to predict something as transmissible as the Delta variant has been found to be. And unfortunately, the pandemic just isn’t something that’s going to come to a quick or hard and fast close.”
/yhoo.it/3lPFseG

Why Are U.K. Covid Cases So High Compared to the Rest of Europe?
Yueqi Yang – Bloomberg
Cases spread rapidly in schools as U.K. vaccination drive lags; Daily new cases are running at highest levels since mid-July
Surging Covid cases in the U.K. have left the country behind the rest of Europe with former U.S. Food and Drug Administration Commissioner Scott Gottlieb calling for urgent research into a mutation known as delta plus.
/bloom.bg/3G0XzX6

Romania Reports Highest Daily Covid-19 Cases, Deaths on Record
Andra Timu and Irina Vilcu – Bloomberg
Romania reported the highest number of deaths from Covid-19 since the start of the pandemic, forcing the country to seek assistance from the World Health Organization in an attempt to limit the burden on already overwhelmed hospitals.
/bloom.bg/3Ea5oZ5

Covid Cases Are Soaring in Britain Again. Why? The country’s full-speed approach to lifting restrictions has certainly contributed to a spike in infections. But that’s only part of the picture.
Therese Raphael – Bloomberg
Once again Britain has one of the highest rates of Covid infection anywhere. The U.K. just reported its biggest single day Covid case increase in three months and a 16% increase in confirmed cases in the week to Oct. 18. The government has warned of a bad winter.
/bloom.bg/3jgHSRY

Fauci Says U.S. to Consider Mix-and-Match Boosters for Covid-19
Ian Fisher – Bloomberg
Says immune response with J&J dose lower than mRNA vaccines; Vaccinated people can safely enjoy holiday season, Fauci says
President Joe Biden’s chief medical adviser said he expects U.S. regulators to consider whether people who got the one-dose Johnson & Johnson vaccine should get an mRNA shot against Covid-19 as a booster.
/bloom.bg/2Z8A91t

Why Vaccine Lotteries Didn’t Move the Needle on Inoculations; Several U.S. states and cities tried to boost Covid-19 vaccinations with a sweepstakes-for-shots approach. A new study suggests that other methods would have been more effective.
Sarah Holder – Bloomberg
In May 2021, as the U.S. vaccination campaign started to lose momentum, several U.S. states and some cities arrived at the same conclusion: To boost uptake, they’d launch vaccine lotteries, giving locals who’d gotten their shot the chance to win a million or more dollars.
/bloom.bg/3G3tW7s

New Delta descendant may be more infectious than its ancestor; Scientist say AY.4.2 seems to be 10%-15% more transmissible but cannot be blamed for high UK Covid-19 case numbers
Clive Cookson and John Burn-Murdoch – FT
Scientists are anxiously tracking a descendant of the Delta coronavirus, which is responsible for a growing proportion of Covid-19 cases in the UK, and could be more infectious than the original Delta variant, they say.
/on.ft.com/3DRBMzi

Singapore launches quarantine-free travel to 10 countries; City-state’s move to ease restrictions for vaccinated individuals prompts rush to book flights
Mercedes Ruehl – FT
Singapore has eased one of the world’s most stringent pandemic regimes, launching quarantine-free travel arrangements with 10 countries after nearly 21 months of closed borders.
/on.ft.com/3FUFZ7j

Exchanges, OTC and Clearing

ICE Mortgage Technology Delivering Full Automation with Added eNotes and eVault Support in Encompass® eClose; Lenders to Drive eNote Adoption with One Consistent and Secure Workflow
Intercontinental Exchange, Inc.
ICE Mortgage TechnologyTM, part of Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology and market infrastructure, announced that Encompass® eClose, the industry’s leading end-to-end eClose solution is expanding its hybrid capabilities to now include full eNote and eVault functionality. The addition of eNotes and eVault capabilities further streamlines the digital mortgage closing process by offering seamless integration with the MERS® eRegistry, the national registry of record that identifies the holder and custodian of each registered eNote.?
/bit.ly/3jb9cAU

ICE Mortgage Technology’s Solutions for Correspondent and Wholesale Demonstrate Significant ROI in Third Party Origination Channels; Study Quantifies Value of Encompass® and Encompass TPO Connect® Portal for Correspondent and Wholesale Lenders
Intercontinental Exchange, Inc.
ICE Mortgage TechnologyTM, part of Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology and market infrastructure, announced the results of a recent, independent return on investment (ROI) study that shows Encompass® and Encompass TPO Connect® deliver quantifiable results and value to correspondent and wholesale lenders who acquire third party originated loans using ICE Mortgage Technology solutions. Built on the ICE Mortgage Technology™ Platform, Encompass TPO Connect is a fully configurable web-based portal that allows wholesale and correspondent lenders to easily collaborate with their third-party originators (TPOs). Encompass, coupled with Encompass TPO Connect, demonstrates the efficiency and ease customers experience in acquiring and managing loans from correspondent lenders and wholesale brokers for faster results, maximum quality, compliance, and profitability on every loan.
/bit.ly/3aNYgVz

ICE Mortgage Technology Announces Experience 2022 Registration is Open
ICE
ICE Mortgage Technology TM, part of Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology and market infrastructure, today announced that registration is now open for its tenth annual user conference, Experience 2022. The conference will be held March 13 – 16, 2022 at Wynn Las Vegas in Las Vegas, Nevada. This year’s conference marks the first in-person event since 2019 inviting attendees to once again participate in general sessions, hands-on training, breakout sessions and networking.
/bit.ly/3G1FW9B

Sponsored Story from Street.com
Q&A: Exchange Leaders Discuss China’s Evolving Markets; Leaders from CME Group, FTSE Russell and Singapore Exchange discuss the changing nature of managing risks across borders.
Lee Meng Gan – CME Group
China has in recent years begun to liberalize its markets. One effect has been the growth of still nascent futures and options exchanges. Today, China has five domestic derivatives exchanges and trading volumes have been on an upward trajectory as domestic investors become more familiar with futures and options, and demand from foreign investors increases.
/bit.ly/3DS5TGL

Kathryn Sweeney Joins MarketAxess as Head of Index and ETF Solutions
MarketAxess Holdings Inc.
MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, and the provider of market data and post-trade services for the global fixed-income markets, today announced the appointment of Kathryn Sweeney as the Head of Index and ETF Solutions.
/bit.ly/2YXIiF

Intercontinental Exchange sells its stake in Euroclear to Silver Lake; Global exchange group sells investment in Euroclear three years after doubling stake.
Richard Schwartz – The Trade
Global technology investment firm, Silver Lake has agreed to acquire Intercontinental Exchange’s (ICE) 9.85% stake in Euroclear Holding SA for EUR709 million. Silver Lake’s acquisition of ICE’s stake in Euroclear is subject to customary closing conditions and regulatory approval, following which it is expected to gain a seat on the Board of the Brussels-headquartered global market infrastructure.
/bit.ly/3CaAFKR

Destination Italia S.p.A. lists on AIM Italia
Euronext
Twenty-third listing of 2021 on Borsa Italiana’s AIM Italia; Destination Italia S.p.A. brings the total number of companies listed on Borsa Italiana’s AIM Italia to 154
Total placement volume of the offering equal to EUR3.5 million
Borsa Italiana, part of the Euronext Group, today congratulates Destination Italia S.p.A. on its listing on Borsa Italiana’s AIM Italia. Destination Italia S.p.A. is the first Italian Travel Tech company specialising in quality inbound tourism in Italy.
/bit.ly/3lUrhoR

IBOR reform moves forward: legacy transactions successfully converted to EURSTR
Eurex
The Interbank Offered Rate (IBOR) reform has taken another big step forward. Over the weekend, in a coordinated action, clearing houses converted their legacy transactions referenced to EONIA to the new risk-free rate EURSTR.
/bit.ly/3BZzZHO

Challenges, successes, new methodologies and products – what’s happening on Eurex EURO STOXX 50® ESG Index Futures and Options?
Eurex
The launch of a new product is always a good opportunity to look back at a product family as a whole. Christine Heyde, Equity & Index Product Design at Eurex joined us to assess the development of the EURO STOXX 5O® ESG Index Futures and Options in light of the introduction of its weekly and month-end option expiries.
/bit.ly/3n1GJyF

Eurex Exchange Readiness Newsflash | T7 Release 10.0 Regulatory Reporting Solution (RRS) for non-MiFIR firms: Readiness Statement is available
Eurex
We would like to inform you about the submission of the “Readiness Statement” that is required prior to the go-live of the T7 Release 10.0 Regulatory Reporting Solution (RRS) for non-MiFIR firms.
/bit.ly/3aXBudD

GFJ ESG Acquisition I SE has been listed on the regulated market in Frankfurt since today
Deutsche Börse
GFJ ESG Acquisition I SE (ISIN: LU2358378979 ) has been listed on the regulated market ( General Standard ) of the Frankfurt Stock Exchange since today . The company is a SPAC – a Special Purpose Acquisition Company. According to its own statements, the issuer is aiming for a merger with a European company in the ESG-related technology sector that supports the path to decarbonization.
/bit.ly/3vratsG

London Stock Exchange Group announces appointment of Ivan Gilmore as LCH Head of Cash Equities
LCH
Today, London Stock Exchange Group announces Ivan Gilmore will take up the post of Head of Cash Equities for LCH, Ltd and SA. In the role Ivan will be responsible for the development and management of both businesses, overseeing the clearing of cash equities products and providing the strategic vision and leadership to the services.
/bit.ly/3lUsbSh

LSEG backs TPI Global Climate Transition Centre to dramatically scale climate assessments of companies
London Stock Exchange Group
LSEG backed TPI Global Climate Transition Centre will dramatically increase the independent assessment of companies from 400 today to 10,000 and expand TPIs coverage from global equities into other asset classes such as fixed income; Climate assessment reports will be free and publicly available; Set to launch in early 2022, the Centre builds on LSEG’s existing relationship with the Transition Pathway Initiative (TPI) and provides an important contribution to the sustainable finance architecture beyond Cop26
London Stock Exchange Group (LSEG) will support the TPI Global Climate Transition Centre (the Centre) by providing data, expertise and funding over the next five years to create a key part of the post-COP26 architecture for sustainable finance. Set to be based at the London School of Economics Grantham Research Institute from early 2022, the Centre will dramatically scale the Transition Pathway Initiative’s (TPI) independent assessments of companies from 400, today to 10,000. Coverage will also be expanded to include fixed income markets.
/lseg.group/3BXUu7N

AAT varies ASIC ban of former Spectrum Wealth director Mark Schroeder
ASIC
The Administrative Appeals Tribunal (Tribunal) has amended ASIC’s decision to ban Mr Mark Schroeder from providing financial services (20:029MR). In February 2020, ASIC banned Mr Schroeder, from providing financial services for six years for his role in numerous compliance failures by Spectrum Wealth Advisers Pty Ltd (Spectrum). Mr Schroeder was a director, chief executive officer, responsible manager and a key person for Spectrum.
/bit.ly/3ATAou7

Colonial First State to pay $20 million penalty for misleading superannuation members
ASiC
The Federal Court has ordered Colonial First State Investments Limited (Colonial), as trustee for the Colonial First State FirstChoice Superannuation Trust (FirstChoice Fund), to pay a penalty of $20 million for misleading communications with members.
/bit.ly/3ATB0jy

Regulating FICC in today’s Age of Uncertainty; Keynote address by ASIC Commissioner Cathie Armour at the ISDA Annual Asia Pacific Conference, 19 October 2021.
ASIC
Good afternoon everyone and welcome. Thank you ISDA for inviting me to speak today. I only wish it could be in person. I am speaking to you from my home in Sydney, Australia. So I’d like to begin by acknowledging the Traditional Owners’ – the Gadigal people of the Eora Nation – ongoing connection and custodianship of the lands I am speaking from. I pay my respects to elders past and present.
/bit.ly/3aTySNY

Dress Rehearsal for LIBOR to RFR OIS Conversion of OTC JPY and CHF Interest Rate Swaps
CME Group
Notification that CME will conduct a Dress Rehearsal for the CHF and JPY LIBOR to Risk-Free Rate OIS Conversion in the New Release environment on Friday, October 22, 2021.
/bit.ly/3aRbvVj

Disclosure of Trading Volume and Open Interest by Trading Participant for CME Group Petroleum Index Futures
JPX
OSE is pleased to announce that in consideration of trading volume, etc. after the new listing of CME Group Petroleum Index Futures, the disclosure of trading volume and open interest by trading participant for that futures will be handled in the same manner as for our commodity futures (i.e. Commodity-Related Market Derivatives Transactions) and will be as follows for the time being.
/bit.ly/3lWECNa

Fintech

Obol Technologies raises $6.15MM to build a trust minimized staking protocol for public blockchains
Obol Technologies
Obol Technologies is delighted to announce it has successfully secured $6.15MM in seed funding to develop a protocol fostering trust minimized staking on public blockchain networks based on secret shared validator (SSV) technology, a primitive conceptualized in collaboration with researchers at the Ethereum Foundation. The funding round was led by Ethereal Ventures, a new venture fund set up by Joseph Lubin and the former investment team at ConsenSys, with participation from Acrylic Capital, Coinbase Ventures, and a sizable group of other strategic supporters, totaling 18 entities and 20 angel investors.

BSO enhances trading routes between Tokyo, London and Singapore; Upgraded routes will provide new and existing customers with improved connectivity between the three equities and FX hubs.
Wesley Bray – The Trade
Infrastructure and connectivity provider BSO will upgrade its connectivity routes between Tokyo and both London and Singapore. New and existing customers will be able to access the new routes from November, offering improved connectivity between the three major equities and FX hubs.
/bit.ly/3aRpmen

JP Morgan subsidiary Neovest appoints new chief executive officer; Incoming CEO brings 17 years’ experience in the financial services industry to order and execution management platform as the firm looks to further grow.
Wesley Bray – The Trade
The order and execution management system (OEMS) owned by JP Morgan, Neovest, has appointed a new chief executive officer, promoting its chief commercial officer to the position.
/bit.ly/30DO9Rl

Cybersecurity

Ransomware Attacks Surge. How the U.S. Is Getting Serious About Hackers.
Matt Smith – Barron’s
Ransomware Attacks Surge. How the U.S. Is Getting Serious About Hackers.
The weekend ransomware attack on Sinclair Broadcast Group highlights a growing problem for American companies: Cyberattacks attacks are surging, and many executives feel helpless to stop them. Now, some security experts see signs that the U.S., after years of trying, is getting serious enough to curb the spread of the costly crimes.
/bit.ly/3peE8Ev

Google CEO Sundar Pichai Calls for Government Action on Cybersecurity, Innovation
Tripp Mickle – WSJ
Sundar Pichai, chief executive of Google and parent company Alphabet Inc., said the U.S. government should take a more active role in policing cyberattacks and encouraging innovation with policies and investments.
In the wake of recent cybersecurity breaches attributed to Chinese and Russian hackers, Mr. Pichai said the time had come to draft the equivalent of a Geneva Convention for technology to outline international legal standards for an increasingly connected world.
/on.wsj.com/3APxTsM

The dos and don’ts of advocating for cybersecurity in the boardroom
Madeline Lauver – Security Magazine
When Chris Jacquet joined Hitachi Vantara, the Chief Information Security Officer (CISO) function was understaffed and underfunded. Over the past six years, the Vice President and CISO grew the organization from a small team to a large enterprise security operation. In a talk at the ISC2 Security Congress 2021 on Monday, Jacquet explained how best to advocate for security in the boardroom.
/bit.ly/3aQDNiH

How To Attract Cybersecurity Talent And Build A Culture Of Security
Elena Kvochko – Forbes
Unprecedented has become the buzzword of the times, and while usually applied to the pandemic, it can easily be used to describe the cybersecurity landscape. A slew of high-impact cyberattacks, targeting the federal government, major utilities, global businesses, and general consumers, have captivated national attention. This rise in attacks – and their surprising success rate in penetrating massive networks – also highlights the current cybersecurity talent gap in the U.S.
/bit.ly/2XwecZy

5 Common Ways You’re Putting Your Company’s Cybersecurity at Risk (and How to Do Better)
Ian McShane – Inc.com
As the attack surface expands and cyber threats continue to evolve, most organizations make security awareness training a key part of their cybersecurity programs. Especially now with growing evidence that social engineering tactics reap big rewards for bad actors and cataclysmic outcomes for enterprises of every size. To wit, Verizon’s 2021 Data Breach Investigations Report notes that 85 percent of all data breaches involve some form of human interaction.
/bit.ly/3aTc2Gd

Cryptocurrencies

The ‘Risk-Free’ Crypto Trade Is Back In a Big Way
Vildana Hajric and Katie Greifeld – Bloomberg
The closest thing to a risk-free bet has reemerged in the cryptocurrency market as traders — awaiting the launch of the first Bitcoin exchange-traded fund — bid up the price of futures.
/yhoo.it/3FWsfsx

Prelude to the future of finance? A major bank is raising a loan from a DeFi protocol to refinance tokenized bonds; Banks could be DeFi’s ‘best and largest clients,’ said Jean-Marc Stenger, CEO of Societe Generale – Forge
Frances Yue – MarketWatch
Societe Generale GLE, -0.42% (SocGen), one of the world’s largest investment banks, is raising a loan through a subsidiary from decentralized platform MakerDAO, to refinance some tokenized bonds it holds. If materialized, it will be the first time a major bank borrows from decentralized finance, or DeFi protocols, which refer to programs powered by cryptocurrencies and blockchains without reliance on intermediaries.

ICE-Backed Crypto Exchange Bakkt Slides in Debut After SPAC Deal
Crystal Kim – Bloomberg
Building enthusiasm for the first U.S. Bitcoin exchange-traded product isn’t doing one exchange much of a favor. Bakkt Holdings Inc., a digital assets platform majority owned by Intercontinental Exchange (ICE), started trading for the first time on Monday after completing its SPAC merger. And shares promptly slid, even though its business stands to benefit from more Bitcoin-linked financial products — the U.S. Bitcoin ETF is focused on futures — coming to market this week.
/yhoo.it/3DSaDfz

Two Crypto-Lending Firms Ordered Shut by New York’s James
Joe Light and Tina Davis – Bloomberg
New York Attorney General Letitia James said she ordered two cryptocurrency lending platforms to stop operating in the state, and sent three other platforms letters with questions about their operations.
/yhoo.it/3mYZrag

A ‘spot’ bitcoin ETF ‘ain’t so great’, says ProShares strategist ahead of provider’s futures-linked fund
Christine Idzelis – MarketWatch
A ‘spot’ bitcoin ETF ‘ain’t so great’, says ProShares strategist ahead of provider’s futures-linked fund
ProShares is offering the first bitcoin-linked exchange-traded fund in the U.S., giving investors exposure to the cryptocurrency through the futures market as opposed to investing in it directly.
/yhoo.it/3jeAF4J

The Grayscale Bitcoin Trust Wants to be an ETF. Don’t Hold Your Breath.
Daren Fonda – Barron’s
The launch of a Bitcoin futures exchange-traded fund is being hailed as a historic moment for the cryptocurrency. It’s also putting pressure on the Grayscale Bitcoin Trust —the largest Bitcoin fund on the market—to try and convert to an ETF.
/bit.ly/3poAR5g

Analysis-Bitcoin futures highlight some pitfalls for new ETFs
Gertrude Chavez-Dreyfuss – Reuters
The launch of the first bitcoin futures exchange traded fund (ETF) on Tuesday marks a major step toward legitimizing the cryptocurrency, but some ETF investors may face higher costs compared with buying the digital currency itself.
/yhoo.it/3G4mj0W

Invesco Puts on Hold Its Bitcoin ETF Application
Avi Salzman – Barron’s
The Bitcoin ETF race just got a little less crowded. Invesco, which appeared just days away from launching an exchange-traded fund that would track Bitcoin futures, decided not to pursue its application on Monday. Invesco, which oversees $1.5 trillion in assets, was expected to be a major player in the market once its ETF launched.
/yhoo.it/3DU67x7

Stablecoins Could Reshape Short-Term Debt Markets, Fitch Says
Eric Lam – Bloomberg
Tokens claiming 1-1 conversion to fiat currencies are growing; Scrutiny intensifying on how such stablecoins manage reserves
The rapid growth of stablecoins like Tether is exerting an ever-greater impact on short-term securities markets such as commercial paper, according to Fitch Ratings.
/bloom.bg/3jfgy6F

Tiger-Backed Crypto CEO Says Talks With India Regulators Ongoing
Ganesh Nagarajan – Bloomberg
Bourse co-founder describes Q&A phase with government; Singhal’s CoinSwitch Kuber is India’s largest crypto exchange
The cryptocurrency industry is in talks with the Indian government and regulators to assuage their concerns about the sector, according to India’s largest crypto exchange.
/bloom.bg/3G3uMB8

Tether’s bitcoin-backed lending clashes with dollar promise; Stablecoin operator accepts crypto in return for some loans, big customer says
Kadhim Shubber, Joshua Oliver and Siddharth Venkataramakrishnan – FT
A major customer of Tether has said the company lends out new stablecoins in return for cryptocurrencies — a claim that calls further into question Tether’s founding promise that it uses only real dollars to issue its tokens.
/on.ft.com/3jgptEM

Politics

Crypto Is Too Big for Partisan Politics
Kristin Smith – Coindesk
Every major American issue seems to get sucked into the “red vs. blue” political dichotomy these days, and now it is cryptocurrency’s turn in the barrel. Following somewhat tense recent testimony between U.S. Securities and Exchange Commission Chairman Gary Gensler and the Senate Banking Committee, Politico confidently declared “Crypto becomes partisan.”
/yhoo.it/3pfaVJm

U.S. reviews sanctions policy, warns of threat from cryptocurrencies
Daphne Psaledakis and Matt Spetalnickn – Bloomberg
President Joe Biden’s administration on Monday announced a set of recommendations to revamp its use of economic sanctions to make them a more effective tool of U.S. foreign policy but warned that more had to be done to protect against the threat posed by the rise of cryptocurrencies. Following a broad review launched shortly after Biden took office in January, the U.S. Treasury Department unveiled a revised framework intended to take a more surgical approach to sanctions instead of the blunt-force method favored by his predecessor, Donald Trump.
/yhoo.it/3jc3zT2

US Treasury Department Says Cryptocurrencies Could Could Undermine Sanctions
James Rubin – Coindesk
The U.S. Treasury Department said on Monday in a report that cryptocurrencies could undermine the effectiveness of U.S. sanctions. The report, which followed a six-month review of U.S. sanctions against countries with whom it is at odds or suspects of being behind illegal activity, noted that “digital currencies, alternative payment platforms, and new ways of hiding cross-border transactions all potentially reduce the efficacy of American sanctions.”
/yhoo.it/3jehZlI

City of London Well-Placed to Thrive Post-Brexit, Boris Johnson Says
Marion Dakers – Bloomberg
Prime Minister speaks in Bloomberg interview ahead of summit; ‘Far fewer’ bankers than expected left London, Johnson says
Boris Johnson said the City of London will prosper outside the European Union, noting job losses and disruption to capital flows have been lower than feared.
/bloom.bg/3peboLR

Russia Signals Europe Won’t Get Extra Gas Without Nord Stream 2
Irina Reznik, Henry Meyer, and Ilya Arkhipov – Bloomberg
Kremlin seeks swift approval for pipeline in return for gas; Gazprom preparing new pipeline for use, limiting other routes
Russia is signaling that it won’t go out of its way to offer European consumers extra gas to ease the current energy crisis unless it gets something in return: regulatory approval to start shipments through the controversial Nord Stream 2 pipeline.
/bloom.bg/3n7FcHp

Regulation

SEC releases 45-page report on Gamestop
Yahoo Finance
Yahoo Finance’s Brian Cheung breaks down the major takeaways from the SEC report.
SEANA SMITH: While we were in that panel, we got some breaking news out. The SEC released its long awaited report on GameStop’s trading frenzy. Brian Cheung got a copy of this report and joins us now with more on that. Brian.
/yhoo.it/3DSwy6q

Opinion: After 9 months of investigation into GameStop stock frenzy, the SEC concludes that things got crazy for a second there
Thornton McEnery – MarketWatch
After months of detailed investigation and thorough analysis into the January meme stock short squeeze that rocked Wall Street and fostered a seething populist distrust in modern market structure, the U.S. Securities and Exchange Commission can now officially confirm that…it happened.
/on.mktw.net/3DUoFgR

SEC’s Bitcoin Solution A Problem
Ben Fulton – ETF.com
Analyzing a new product that I did not create is always a risky endeavor. Typically this means I will step on toes that I did not intend to and my thoughts could be viewed as sour grapes since I was not part of solution. I will attempt to avoid these issues, but apologies ahead of time if I don’t.
/yhoo.it/2Z0oGBb

German watchdog imposes strict cap on N26’s client growth; Fintech limited to maximum 70,000 new customers a month in long-running BaFin tussle
Olaf Storbeck – FT
German banking watchdog BaFin has imposed a draconian cap on N26’s client growth in a rare intervention that will slow down the expansion of the Berlin-based online bank.
/on.ft.com/3lSe3Je

The S.E.C. Weighs In on Meme-Stock Mania; What a long-awaited report on trading in GameStop and other internet favorites says, and doesn’t say, about online-fueled stock-trading booms.
Andrew Ross Sorkin, Jason Karaian, Sarah Kessler, Stephen Gandel, Michael J. de la Merced, Lauren Hirsch and Ephrat Livni – NY Times
The frenzied trading in shares of GameStop, AMC and other so-called meme stocks in January led to big losses for some hedge funds, an outcry from retail investors who were abruptly shut out from trading and calls from Capitol Hill to overhaul market rules. But a long-awaited S.E.C. report about those events, released yesterday, concluded that the markets operated largely as intended, debunking conspiracy theories. The report proposed no policy changes.
/nyti.ms/2Xqf2qy

United States: SEC Hinting Approval Of Bitcoin Trading Of Crypto-asset Manager Qualification!
by Peter Vogel – Foley & Lardner
The CoinTelegraph.com reported that “The United States Securities and Exchange Commission, or SEC, may soon approve an application from crypto-asset manager Valkyrie for a Bitcoin (BTC) exchange-traded fund, or ETF, with the shares to be listed on the Nasdaq Stock Market.” The October 15, 2021 report entitled “BREAKING: Nasdaq listing hints that the SEC may soon approve ETF application from Valkyrie” included these comments:
/bit.ly/3AX1kt5

Investing and Trading

Listed companies driving a 3C rise in temperatures, study finds; Research renews concerns surrounding passive investment and quality of data
Emma Boyde – FT
World temperatures will rise 3C if listed companies do nothing to change their current projected emissions, new research suggests, underlining the difficulty of trying to invest sustainably in broad-based passively managed ETFs.
/on.ft.com/3jbmaPl

Traders turn on yen as global energy crisis deepens; Japan’s currency hit by rising cost of imported petrochemicals and easy monetary policy
Tommy Stubbington and Leo Lewis – FT
Currency traders say the yen could be poised for further losses after the Japanese currency slumped to its lowest level against the dollar in three years, squeezed by the rising cost of the imported energy on which the world’s third-largest economy depends.
/on.ft.com/3lQYykK

Day Traders Are Driving Uranium Prices Higher; Individual traders flock to Canadian uranium investment trust that has snapped up nuclear fuel and boosted prices
Joe Wallace – WSJ
Enthusiasm from individual traders is reshaping the market for nuclear fuel that generates a tenth of the world’s electricity and sending uranium-linked stocks higher. After languishing for a decade after the Fukushima disaster led Japan and Germany to close nuclear reactors, spot uranium prices have shot to $47 a pound from $32.25 at the start of August. They remain below their peak of $137 in 2007, according to price-tracker UxC LLC.
/on.wsj.com/3aPlKcT

Environmental, Social and Corporate Governance

Beef Industry Tries to Erase Its Emissions With Fuzzy Methane Math; A new campaign asserts, incorrectly, that cows in the U.S. “may not be contributing much at all to global warming.”
Ben Elgin – Bloomberg
Scientists with the world’s top climate organization made reducing meat consumption an official policy recommendation in 2019, echoing what environmentalists had urged for years: Eating less meat, in particular beef, reduces the large volume of emissions attributed to livestock. That guidance has only accelerated efforts by the beef industry to discredit the notion that strip steaks and cheeseburgers are climate culprits.
/bloom.bg/2Z98BZJ

Europe’s Fund Managers Hit by ESG Doubts as Share Prices Sag
Frances Schwartzkopff – Bloomberg
Aviva CEO Blanc calls for global ESG reporting standards; Jefferies warns that record relabeling to ESG may backfire
Shareholders are treating European asset managers with caution amid signs the industry is facing a regulatory crackdown on its claims around environmental, social and governance investing, according to a fresh analysis.
/bloom.bg/3GbpwMf

Lack of investment rigour risks creating an ESG bubble; A trend of ‘demonstration investments’ can be counter-productive over the long term
Dambisa Moyo – FT
A wall of money is driving equity valuations to record highs across broad markets, spurred by pandemic stimulus programmes and low interest rates. Stocks targeted by investors for environmental, social and governance reasons have been particular beneficiaries from the deluge. The pool of assets under management with an ESG mandate is expected to rise to $50tn by 2025, from $35tn last year, according to a survey by Bloomberg Intelligence.
/on.ft.com/3naXRlC

Barclays Says Green Bond Investors Pay More for Less Liquidity
David Caleb Mutua – Bloomberg
Findings imply that most green bond investors are buy-and-hold; Demand for the securities is strong enough to weigh on yields
Demand is so strong for green bonds, or debt that funds environmentally friendly projects, that investors are accepting lower yields for securities that are harder to trade, according to Barclays Plc.
/bloom.bg/2Xr5U57

Institutions

Credit Suisse Nears Deal With U.S. Over Mozambique Scandal
Patricia Hurtado, Jonathan Browning and Sridhar Natarajan – Bloomberg
Credit Suisse Group AG is nearing an agreement with the U.S. government that would resolve a criminal probe regarding its role in a $2 billion Mozambique bond scandal, according to people familiar with the matter.
/yhoo.it/30FDw0l

Apollo Targets $1 Trillion in Assets, Aiming to Outpace Blackstone; Investing giant hopes Athene acquisition will supercharge its AUM growth
Miriam Gottfried – WSJ
Apollo Global Management Inc. APO 1.31% said it expects its assets under management to double to about $1 trillion by 2026, setting up a race with fellow investment behemoth Blackstone Inc., which has set the same lofty target.
/on.wsj.com/3vsOP7b

Former Goldman Sachs managing director joins MarketAxess to head up index and ETF solutions business; New head of index and ETF solutions at MarketAxess previously spent four years at State Street Global Advisors and 18 years at Goldman Sachs.
Annabel Smith – The Trade
MarketAxess has appointed a former Goldman Sachs and State Street Global Advisors managing director to head up its index and ETF business.
/bit.ly/3C14VYk

Goldman Sachs more than doubles first-year banker bonuses to £64,500 amid junior burnout crisis; Across the analyst population in the City, bonuses are up 60-80% this year, according to Dartmouth Partners
Paul Clarke – Financial News
Junior banker bonuses in London have surged by 60% this year as firms have moved to stem an exodus of talent, with Goldman Sachs the biggest payer in the City, according to new figures. First-year bankers at Goldman received a bonus of £64,500 over the summer, according to research by recruiters Dartmouth Partners, up by 130% on the previous year as banks have battled a burnout crisis in the junior ranks that has led to new perks and salary hikes across the sector.
/bit.ly/3BV9rYs

Regions

Covid Made London and Paris Cheaper — for the Rich; The uneven post-Covid rebound risks turning cities from locked-down deserts into enclaves for the rich.
Lionel Laurent – Bloomberg
Betting on the “death of the city” after Covid always looked extreme — Classical Athens survived far worse plagues and disasters. Yet places like London and Paris are once again having to confront the risk of hardening into enclaves for the rich.
/bloom.bg/3n4ZVM5

China’s Curbs on Fertilizer Exports to Worsen Global Price Shock
Bloomberg News
Government asking for additional inspections on exports; Concerns grow over impact of energy prices on food production
Chinese authorities are imposing new hurdles for fertilizer exporters amid growing concerns over surging power prices and food production, a move that could worsen a global price shock and food inflation.
/bloom.bg/2Z99hhJ

Brussels signals extension of looser Covid-era state aid rules; EU competition chief Margrethe Vestager says bloc seeking to extend deadline ‘one last time’
Javier Espinoza – FT
Brussels is seeking to extend its relaxation of state aid rules beyond the end of the year as it comes under pressure from businesses to keep the temporary measures introduced to help them survive the pandemic.
/on.ft.com/30Hh2fp

China’s magnesium shortage threatens global car industry; Production curbs in the country have hurt stockpiles of a key ingredient to make aluminium in vehicles
Neil Hume – FT
The world’s largest carmakers could face a potentially crippling shortage of aluminium, as China’s power crisis threatens supplies of a key component used to make the lightweight metal.
/on.ft.com/3jcwzdl

Miscellaneous

Cresco Labs buys Pennsylvania cannabis grower for $80 million; Laurel Harvest will provide Cresco with thousands of square feet of growing and processing space in the state.
Debra Borchardt – Crain’s Chicago Business
Chicago-based cannabis firm Cresco Labs is buying Pennsylvania-based Laurel Harvest for $80 million, according to Crain’s sister publication Green Market Report. Laurel will provide Cresco Labs thousands of square feet of growing and processing space in the state. Laurel has 52,000 square feet of indoor growing and processing space and room for an additional 52,000 square feet of indoor cultivation space.
/bit.ly/3pidgn6

Martha Stewart Does NFTs—Jack-o’-Lantern Art and a Seductive Selfie; Lifestyle guru rolls out a line of digital collectibles tied to seasons and holidays; ‘I have been cool for a long time, but I’m even more cool now’
Anne Steele – WSJ
Martha Stewart wants to be your crypto queen. The 80-year-old lifestyle guru plans to unveil a collection of NFTs on her e-commerce site Tuesday. Alongside her wares for dining, drinking and decorating, Ms. Stewart will hawk her first line of digital collectibles, Halloween-themed nonfungible tokens featuring images of her costumes (and other good things) carved into pumpkins.
/on.wsj.com/3vonKC8

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