Ten global clearing firms make strategic investment in FIA Tech

Jun 16, 2021

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Hits & Takes
John Lothian & JLN Staff

I am having a virtual fireside chat with former CFTC Chairman Chris Giancarlo today as part of the Chicago Bar Association Annual Seminar.

Today Euronext launched its Euronext Knowledge Center. It is billed as a central place for retail investors. — Euronext

Euronext is also looking for a Commodity Trading Analyst. — Euronext

Congratulations to Marc Berman, Eugene Colter, Carol Kennedy, Mary Minow, Annette Nazereth and Eric Noll, who have all been named to the Advisory Board of Options Solutions. — Options Solutions

DRW has a commentary on its website titled “Applying Computer Science to a Career in Trading. Quantitative trading analyst shares how he applies his background in computer science to his career at DRW.” — DRW

Tradier Inc. recently announced its live web series: OptionsBrewTV! One of their latest episodes on the OptionsBrewTV playlist is “What is a Box Strategy using Options.” Check it out HERE.

Several years ago I shared a television study at Channel 11 in Chicago with Kelly Richmond Pope, CPA, professor of accounting and Surgent Faculty Fellow at DePaul University. Yesterday, she was promoted to a full professor of accounting at DePaul in Chicago. She is one of 2.1% of tenured black women professors in the U.S. Congratulations, Kelly! — LinkedIn

Nasdaq is holding an LGBT Leaders Conference on June 24th. It will feature conversations with Chelsea Clinton, Eric Fanning, A.G. Breitenstein, Alex Marshall and others. The program is virtual and everyone is invited. Register HERE.

FIA continues to leverage their FIA Hall of Fame inductee interviews with another episode of “FIA Speaks Episode 18: FIA Futures Hall of Fame inductees Doug Harris and Bryan Durkin.” — FIA

This seems like a job for Newman from Seinfeld. The Girl Scouts are stuck with over 15 million boxes of unsold cookies. The pandemic and reduced membership caused them to order too many. You can order Girl Scout cookies HERE.NY Times

The American Financial Exchange made a significant donation to the JLN MarketsWiki Education GoFundMe campaign yesterday in appreciation of our work on a video about the life of their CEO, Dr. Richard Sandor. AFX will also become a sponsor of the JLN Weekend Update as a consequence of their donation. Thank you to Dr. Sandor and the AFX team for their donation and all who have given and all who have yet to give. Support our efforts to preserve industry history by giving to our GoFundMe 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


HKEX Celebrates 21st Anniversary
Hong Kong Exchanges and Clearing Limited (HKEX) today (Wednesday) marked the 21st anniversary of its listing in Hong Kong with a celebration ceremony held at HKEX Connect Hall. Hong Kong Chief Executive Carrie Lam was guest of honour at the ceremony, alongside Hong Kong Financial Secretary, Paul Chan. They were joined at the event by members of the HKEX Board of Directors and HKEX senior management, where a new corporate film was unveiled highlighting the importance of connectivity and sustainability in the future of Hong Kong’s financial markets.

*****And the next 21 will be even better.~JJL


Billionaires Are Tapping Skyrocketing Fortunes to Fund Record Giving; MacKenzie Scott and Jack Dorsey, along with foundations, helped boost charitable donations in a year when it was sorely needed.
Suzanne Woolley – Bloomberg
Americans gave a record $471.4 billion to U.S. charities in 2020, much of it stemming from fortunes made in technology. The philanthropic total — about 70% from individuals — was an estimated 3.8% higher than in 2019, after adjusting for inflation, according to an annual survey by Giving USA released Tuesday.

*****To whom much is given, much will be required.~JJL


Cboe to Extend Global Trading Hours for VIX and SPX Options to Nearly 24 Hours, Beginning November 21, 2021
Cboe Global Markets, Inc.
Aims to meet growing customer demand for SPX, VIX options to hedge and manage exposure to broad U.S. equity market and global equity volatility; Move to extend global trading hours expected to complement upcoming planned launch of Cboe Europe Derivatives and the planned acquisition of Chi-X Asia Pacific; New curb session planned to go live on September 27, 2021
Cboe Global Markets, Inc. (Cboe: CBOE), a market operator and global trading solutions provider, today announced it plans to extend global trading hours (GTH) for its S&P 500 Index (SPX) options and Cboe Volatility Index (VIX) options to nearly 24 hours each business day on Cboe Options Exchange, beginning Sunday, November 21, 2021, subject to regulatory review.

***** In response, MIAX is extending its trading hours to 26 hours a day. This trick involves the international date line and the Bermuda Triangle.~JJL


DeFi Identified as Potential Focus for CFTC Enforcement Action; CFTC Commissioner asserts that Decentralized Finance (“DeFi”) likely violates the Commodity Exchange Act (“CEA”) and that the regulator should respond accordingly.
Jones Day
DeFi is an umbrella term encompassing a range of blockchain financial markets designed to offer financial services through a distributed platform that does not involve traditional financial intermediaries such as banks, exchanges, and brokerages. DeFi proponents argue that removing these intermediaries increases efficiency and grants consumers more control over their investments and trading activities. This is especially so in the cryptocurrency space. For example, over $20 billion in cryptocurrency was traded using DeFi as of January 2021—a twenty-fold increase from the prior year. In response to this demand growth, DeFi platforms are quickly proliferating.

*****Watch out!! ~JJL


Options Solutions Appoints Advisory Board
Options Solutions
Options Solutions LLC, a specialized, asset management firm that was created to help high-net-worth investors add conservative options strategies to their portfolios, has appointed an Advisory Board. The Advisory Board will advise senior management on issues that are critical to the company and its clients, providing additional expertise and insight.

***** They put together quite the team.~JJL


Tuesday’s Top Three
Our top story Tuesday was Remote workers work longer, not more efficiently, from The Economist. Second was As downtown shows signs of life again, new questions emerge, from Crain’s Chicago Business. Third was the Facebook page for remembering K. James Kleinops, who recently passed away, posted by his son Jeffrey Kleinops.


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Lead Stories

Ten global clearing firms make strategic investment in FIA Tech
Newly capitalized firm aims to bring greater efficiency and resilience to the markets
Today, FIA announced an investment of $44 million by ten leading clearing firms to fund the strategic growth of FIA Tech. The capital raise will advance FIA Tech’s efforts to bring innovative solutions to the derivatives industry. The newly capitalized FIA Tech will be investing to further the development of existing products that have successfully served the industry and launch innovative new solutions to improve market infrastructure across the listed and cleared derivatives industry.

China’s Campaign to Control Commodities Goes Into Overdrive
Bloomberg News
State firms ordered to curb overseas commodities exposure; China will also release metals from secretive state reserves
China has stepped up its campaign to rein in commodity prices and reduce speculation in a bid to ease the threat to its pandemic rebound from soaring raw material costs. State-owned enterprises were ordered to control risks and limit their exposure to overseas commodities markets by the State-owned Assets Supervision and Administration Commission, according to people with knowledge of the matter. The companies have been asked to report their futures positions for Sasac to review, said the people, who asked not to be identified because the information is confidential.

Crypto Die-Hards Built a $90 Billion Wall Street on the Internet; Automated protocols running on the internet are paying traders to provide liquidity for unregulated, decentralized markets.
Justina Lee – Bloomberg
Money manager Vladimir Vishnevskiy can earn a negative interest rate for holding a European government bond. Or he can pocket the annual equivalent of a 20% yield for locking money up in one of the wilder corners of the crypto market, known as decentralized finance, or DeFi.

Clearing firms invest $44 million in FIA Tech to support derivatives market innovation; Goldman Sachs, JP Morgan and UBS part of almost a dozen firms which took part in the strategic investment.
Annabel Smith – The Trade
Ten global clearing firms have taken part in a $44 million investment in FIA Tech, a subsidiary of the Futures Industry Association (FIA) to support its strategic growth and help it innovate the derivatives industry. The firm will use the strategic funding to further develop existing products serving the derivatives markets and launch new solutions to improve market infrastructure across the listed and cleared derivatives industry.

China to Release Metal Reserves in Effort to Tame Commodities Rally; Releasing reserves of copper, aluminum and zinc may reduce price pressures on manufacturers
Chuin-Wei Yap and Yifan Wang – WSJ
China said it would begin to sell major industrial metals from state stockpiles, an effort to squelch factory-gate price increases that have hit a 13-year high and are stoking fears of global inflation. As the world’s biggest buyer of a range of industrial commodities, China is using its market heft to try to quell the sharp rise in global metal prices over the past 12 months, including a 67% surge in copper, a bellwether for macroeconomic health. Economic stimulus measures and a broad resumption of global economic activity from pandemic lows have spurred a spree of buying in China and elsewhere.

Global banks adopt markedly different back-to-work policies; Goldman Sachs was first to recall employees but rival bankers will be based at home for months
Joshua Franklin, and Owen Walker and Joe Rennison – FT
Goldman Sachs bankers were called back to their desks this week, but the return to the office came with a twist. The bank offered free food to staff at its 200 West Street headquarters in New York and staged afternoon concerts to buoy morale.

Carbon trading will drive emission cuts in commodity supply chains; Transparent standards and a liquid carbon market could play a role in climate transition
Jeremy Weir – FT
The race to limit global warming by reducing emissions of greenhouse gases has created new dynamics in markets. Commodity markets may be among the most profoundly affected, but they also have a crucial role to play in the transition to a lower-carbon economy.

EOXLive And S&P Global Market Intelligence End Agreement After Nine Years; OTC Global Holdings’ EOXLIVE Market Data Will No Longer Be Available Through S&p’s Global Market Intelligence Platform
OTC Global Holdings
Leading independent interdealer broker OTC Global Holdings (OTCGH) announced that as of June 11, 2021 its EOXLive market data group ended its agreement with S&P Global Market Intelligence after a successful nine-year relationship.

Crypto Lode of $100 Billion Stirs U.S. Worry Over Hidden Danger
Joe Light – Bloomberg
So-called stablecoins cited as a risk to financial system; Consumers’ money isn’t adequately protected, lawmakers say
Regulators are worried about hidden risks to investors and even the financial system stemming from a fast-growing corner of the crypto market meant to be immune from volatility.

‘Mediocre’ Male Managers in Finance Hold Women Back, Report Says
Lisa Pham – Bloomberg
All-male leadership teams common at smaller listed companies; Women in banking held to higher standards than men by industry
From all-male leadership teams at listed companies to ‘mediocre’ male managers in finance, two separate reports Wednesday laid bare the scale of the challenge facing U.K. business if they want to bolster diversity. Smaller companies in Britain’s FTSE All-Share Index are lagging behind their larger peers when it comes to having diverse representation on their boards, according to a report by Women on Boards UK.

*****Here is the FT version of this story.~JJL

SEC Is Warned Against Chilling Executives’ Stock Trading Plans
Bloomberg Tax
Current rule is effective against insider trading, Uber’s Gumbs says;SEC eyes disclosures, limits on number of plans, cancellations
The SEC is being urged to tread carefully as it considers toughening rules that allow executives’ company stock sales without running afoul of insider trading laws. Corporate executives regularly unload stock through scheduling plans they create under the Securities and Exchange Commission’s Rule 10b5-1. The plans provide a defense against accusations of insider trading, but may help unscrupulous executives cash in on nonpublic, market-moving information.

ECB Poised to Extend Bank Capital Relief by Nine Months
Nicholas Comfort and Steven Arons – Bloomberg
Decision needs to be signed off by ECB Governing Council; Move in contrast to U.S., Swiss decisions to let aid lapse
The European Central Bank is set to extend a key plank of its pandemic relief measures by nine months to ensure lenders keep supplying credit to the economy, according to people familiar with the matter.

BlackRock Enriches Aladdin Platform’s Derivatives Capabilities with Cassini Partnership
Cassini Systems
BlackRock (NYSE: BLK) and Cassini Systems, a leading provider of pre- and post-trade margin and collateral analytics for derivatives markets, announced today that the two firms have entered into a strategic partnership to integrate Cassini analytics into BlackRock’s Aladdin® platform. The integration will allow mutual clients to factor margin-based analytics into their pre- and post-trade decision-making.

Who’s Up For Managing a $1 Trillion Pension Fund? An ingenious proposal to consolidate U.K. corporate pensions into three mega-funds has a lot going for it. But there are potential costs for taxpayers.
Chris Hughes – Bloomberg
A proposal to mash together all of the U.K.’s corporate pension plans into a handful of mega-funds with more than 2 trillion pounds ($2.8 trillion) of assets promises to revitalize the London stock market, give retirees more security and boost the British economy all in one go. This ingenious idea has some logic, and a wrinkle.

Bond Market Has a $970 Billion Sheriff in Town; Has Brussels overreached with the temporary bar of 10 banks from its syndicated bond sales?
Marcus Ashworth – Bloomberg
There’s a new sheriff in town for financial markets. The European Commission, the administrative center of the EU, has just sent the clearest signal possible to global investment banks that there will be zero tolerance of market rigging in the bloc’s financial markets.

Exchanges to Accelerate Cloud Adoption
Anna Lyudvig – Traders Magazine
Cloud adoption needs to happen across the entire capital markets ecosystem, Monica Summerville, Head of Capital Markets at Celent, said. “The pandemic has been a catalyst for cloud adoption, but the reality is that most exchanges are at an early stage of cloud adoption,” she said in a conversation with Clive Posselt from The Realization Group at the Front Office: The Final Cloud Frontier? webinar.

Unregulated spread of cryptocurrencies a concern, says Italian regulator
The spread of cryptocurrencies without any clear regulation is a cause for concern and could damage the way the market operates, the head of Italy’s stock market regulator said on Monday.

Cryptocurrencies Not Good Medium for Payments, BOE Chief Says
Marc Daniel Davies – Bloomberg
Governor Andrew Bailey takes a fresh swipe at digital tokens; Warns buyers of coins are at risk of losing all their money
Bank of England Governor Andrew Bailey warned against using cryptocurrencies for payments, taking another swipe at digital tokens. “They fluctuate in value substantially,” he told a virtual conference on Monday. “Which is why they’re on the whole not a good medium for making payments.”

How the class of 2021 is making up for lost internships; Students have missed real-world experience that builds skills but universities are helping to close the gaps
Bethan Staton – FT
When Alice Lang started at the University of Bristol two years ago, she was excited to get experience beyond her degree. Then the UK entered lockdown and the 21-year-old’s plan for a life beyond lectures was put on hold.

Trial Lawyer, Former AUSA Rachel Cannon Joins Steptoe in Chicago
Steptoe & Johnson LLP is pleased to announce that former federal and state prosecutor Rachel Cannon has joined the firm’s Investigations & White-Collar Defense Group as a partner. Cannon, who brings substantial trial experience, as well as significant cryptocurrency experience, will reside in Steptoe’s Chicago office, where she reunites with Steptoe partner Chris Niewoehner, another former assistant US attorney in the Chicago federal prosecutor’s office.

IHS Markit’s Lance Uggla: ‘The phone rang — it was S&P Global’; The IHS Markit CEO and FN Trading & Tech award winner discusses the imminent $44bn merger with S&P, and ponders the next chapter in his life
David Ricketts – Financial News
Towards the end of last year, Lance Uggla was on the verge of striking the biggest deal of his career. But before selling the company he had built from scratch over almost two decades, the peppy Canadian entrepreneur had to make a phone call to one of his most trusted confidants — his father.

Silicon Valley Friends Charged in Insider-Trading Ring; Six face criminal and civil charges over trading in shares of Infinera and Fortinet
Dave Michaels – WSJ
Authorities on Tuesday charged a group of six friends in Silicon Valley with insider trading, alleging they shared unlawful stock tips and traded on the information to earn about $1.7 million.


Moscow Orders Mandatory Vaccinations After Spike in Covid Cases
Jake Rudnitsky – Bloomberg
City wants 60% of service workers to start process by July 15; Putin earlier said Russia won’t force people to take vaccine
Moscow ordered service-sector and municipal workers to get vaccinated amid a spike in Covid-19 infections, as the Kremlin denied any reversal in Russian President Vladimir Putin’s opposition to compulsory inoculation.

A Vaccine the World Badly Needs Looks Better Than Ever; Novavax’s shot has been beset by delays and setbacks, but new data suggests it is a highly effective shot that could play a big role in the global pandemic fight.
Max Nisen – Bloomberg
Research and manufacturing delays have dogged the arrival of a Covid-19 vaccine from Novavax Inc., one of only six selected by the U.S. government’s Operation Warp Speed for a large order. At one point in May, the company’s shares were down 62% from a February high. On Monday, though, Novavax took a step toward a comeback, announcing that its vaccine was 90.4% effective in preventing mild and moderate Covid in a large trial in the U.S. and Mexico and prevented all severe disease.

Singapore to Assess Reopening as Virus Cases, Vaccinations Rise
Kwan Wei Kevin Tan – Bloomberg
Highest daily virus count in nearly two weeks; 16 linked cases; Nearly half the population have received their first dose
Singapore’s government is assessing the timing and the scope of the next stage of reopening after a rise in local Covid-19 cases, adding to short-term uncertainty for key sectors of the economy even as vaccinations neared a key milestone.

New York Benefits Most, South Dakota Least From 70% Vaccination; A computer simulation predicts the reduction in Covid-19 cases in all 50 states.
Peter Coy – Bloomberg
Vaccinating more people against Covid-19 is always going to be a good thing but the benefits vary widely by state, according to a new computer simulation whose results are charted below. New York would get the biggest reduction in cases from getting 70% of its population fully vaccinated vs. 50%, followed closely by Florida and North Carolina, while South Dakota would see the smallest benefit, the simulation says.

Pockets of Unvaccinated Americans Threaten to Prolong Pandemic; Less than 25% of the population is fully vaccinated in at least 482 U.S. counties, including in states with some of the highest overall vaccination rates
Kristen V Brown – Bloomberg
As much of the country emerges from masking and social distancing, undervaccinated pockets in the U.S. still threaten to bring the virus roaring back. Less than 25% of the population is fully vaccinated in at least 482 counties, according to an analysis of Centers for Disease Control and Prevention data by Bloomberg News. Many of these counties are more rural and less economically advantaged than the rest of the U.S., and a majority of their voters in the last presidential election chose Donald Trump, according to the analysis of 2,700 U.S. counties.

Regeneron antiviral treatment saves lives of Covid patients in hospital; Clinical trial shows the therapy helps those who fail to make their own antibodies against coronavirus
Clive Cookson – FT
Regeneron’s antibody cocktail significantly reduces the risk of death among hospitalised Covid-19 patients whose own immune systems have failed to fight the virus, a large UK clinical trial has shown.

Covid jabs set to be made compulsory for care home staff in England; Government plans to require workers looking after people aged over 65 to be inoculated or risk being sacked
Sarah Neville – FT
Care home staff working with elderly people in England will have to be immunised against Covid-19 as a condition of keeping their jobs under government plans, potentially paving the way for compulsory vaccination of health workers too.

Exchanges, OTC and Clearing

Nasdaq Trades in Deception By Mishandling Question Critical of its Board Diversity Scheme
Free Enterprise Project
At the Nasdaq, Inc. annual shareholder meeting today, CEO Adena Friedman dodged a question from the Free Enterprise Project (FEP) about the Nasdaq stock exchange’s proposed requirement that all Nasdaq-listed companies make board director decisions – or explain why they don’t – under a diversity paradigm that looks at race, sex and sexual orientation but not viewpoint diversity.

Dubai Commodities Clearing Corporation (DCCC) is Recognized as a Clearing House by Monetary Authority of Singapore; A recognition that will enable DCCC to offer clearing services to banks and financial institutions located in Singapore; Initiative will contribute to UAE’s position as a regional hub for central clearing
The Dubai Commodities Clearing Corporation (DCCC), a leading Central Counter Party (CCP) in the region and a wholly owned subsidiary of the Dubai Gold & Commodities Exchange (DGCX), today announced its recognition as a ‘Recognized Clearing House’ (RCH) by the Monetary Authority of Singapore (MAS), the country’s Central Bank and financial regulatory authority.

LME CEO Hopes Ring-Dealers Will Adapt to Hybrid Pricing System
Mark Burton – Bloomberg https://bit.ly/3zsMkn0
The LME will reopen its open-outcry trading floor in September; Brokers have warned of commercial challenges in LME’s plans
The head of the London Metal Exchange is hopeful brokers will be able to adapt to a new part-electronic pricing system when they return to the open-outcry trading floor.

LME partners with charities Pact and The Impact Facility to fund two responsible sourcing projects
London Metal Exchange
LME to donate total of US$1.7million to two distinct multi-year projects run by Pact and The Impact Facility in Zambia and the Democratic Republic of the Congo (DRC), respectively
Projects focus on reducing the number of children working in mines
The London Metal Exchange (LME) is today pleased to announce its funding partnership with the charities Pact and The Impact Facility, with the aim of tackling child labour and children’s rights issues in mining communities directly affected by these responsible sourcing concerns.

Meet the Market with FEAS | The Iranian Capital Market
Meet the Market with FEAS | The Iranian Capital Market event is taking place on July 15th, at 14:00 Yerevan time (GMT+4). The representatives of the Stock Exchanges and Depository will introduce You with the Iranian Capital Market, present the information about the country and about how to invest!

Index options: Amendment of Default Maximum Order Limits
In the context of the changes in TES/EnLight Minimum Block Trade Sizes based on ESMA’s annual transparency calculations (Eurex Circular 046/21), Eurex Frankfurt AG revised the Default Maximum Order Limits for index options defined by the exchange.

Eurex Exchange Readiness Newsflash | Eurex T7 Release 9.1: Reminder regarding Readiness Statement submission
With this Newsflash we would like to remind you about the mandatory feedback that we kindly request from you. Please submit the “Readiness Statement” for the go-live of T7 Release 9.1 by Friday, 18 June 2021 latest. The Readiness Statement can be found here: Eurex

Tax exemption for connectivity
The German Federal Ministry of Finance (BMF) has issued a circular on 3 May 2021 on the VAT treatment of services provided by exchanges and other trading platforms for financial products.

ABOUT YOU Holding AG now in the Prime Standard of the Frankfurt Stock Exchange
Deutsche Börse Group
ABOUT YOU Holding AG (ISIN: DE000A3CNK42 ) has been listed in the Prime Standard of the Frankfurt Stock Exchange since today . The first price of the share was 25.60 euros, the issue price 23.00 euros.

ASX successfully delivers real-time corporate actions straight-through processing
ASX has successfully completed and launched its real-time corporate actions straight-through processing (STP) service, which enables the processing and delivery of critical information – everything from dividends to entitlement offers – within seconds of announcement using ISO 20022 global standard messaging.

Product Modification Summary: Amendments to and Delisting of Certain CME and CBOT Products in Connection with the Elimination of Most CME and All CBOT Open Outcry Trading Pits – SOFR
CME Group
Amendments to and Delisting of Certain CME and CBOT Products in Connection with the Elimination of Most CME and All CBOT Open Outcry Trading Pits – SOFR

UPDATED – 2021 Final Foreign Currency Settlement Prices
CME Group
Please find the UPDATED attached updated June 2021 Final Foreign Currency Settlement Prices

Introduction of Compression Trade Rules
Osaka Exchange, Inc. (OSE) will introduce Compression Trade Rules as a new listed trading method, which allows market participants to reduce outstanding positions while controlling the change in risk exposure within a certain range in off-auction market (J-NET market).

The Iraq Stock Exchange Holds Its Annual General Assembly Meeting
Iraq Stock Exchange
The Iraq Stock Exchange holds its annual general assembly meeting on Tuesday June 15. 2021 at the Babylon Hotel. With the participation of chairman of the Iraqi Securities Commission and the directors of supervision. The auditor company, as well as 54 listed companies and 35 brokerage firms

HKEX CEO Blog: And To The Next 21 Years!
Nicolas Aguzin – Mondovisoine
This is my fourth week at HKEX, and I have been enjoying every moment. I have been super busy, but I have been blessed by the very warm welcome I received from near and far.


Four years of academic study on HFT yields complicated results; A transatlantic group of researchers has examined a treasure trove of market data to see whether or not high-frequency trading is a necessary component of today’s market structure. The answer is largely ‘yes,’ but with caveats.
Joanna Wright – Waters Technology
Ever since the Michael Lewis book Flash Boys, high-frequency trading (HFT) has held a notorious place in the public imagination. But whether you believe that HFT is crucial for liquidity or a major threat to financial stability, it now represents just over half of all trading volume in the US equity markets, and 24% to 43% in Europe’s. That’s why the range of practices and strategies caught by the definition of HFT are of increasing interest to academics, who look at HFT market microstructure

Charlotte Crosswell leads the pack for fintech, being awarded an OBE for her work in the financial services industry; Finance leaders eke their way onto the Queen’s Birthday Honours list
The past year has been a tough one for everyone up and down the country, and some of those that have stepped up to the plate in the world of financial services have been recognised. Most notably in the world of fintech, Charlotte Crosswell, the former CEO of Innovate Finance, received an OBE for her work in financial services.

BoE’s Bailey promises ‘tough love’ for fintech firms
Bank of England Governor Andrew Bailey promised “tough love” for some financial technology firms and “disappointed ambitions” for others, as the central bank seeks to ensure that innovation in cryptocurrencies does not create financial instability.

Plaid quietly acquired a startup founded by 2 Robinhood alums in March, hinting at plans to push further into payments
Shannen Balogh and Melia Russell – Insider
The competition for engineering talent is fierce, even for fintech darlings like Plaid, which is in the midst of an aggressive hiring push. In March, the fintech quietly made a talent acquisition — often called an ‘acqui-hire’ — of Flannel, a payments-focused startup recently co-founded by two former Robinhood engineers, Insider has learned.

Cash use plunges during pandemic; Shoppers switching to contactless causes 35% reduction in number of cash payments
Claer Barrett – FT
The Covid-19 pandemic has accelerated the decline of cash, with the volume of UK payments made using notes and coins plunging by 35 per cent in 2020 compared with the previous year.

BlackRock adds margin analytics to Aladdin with Cassini integration; Through the integration, mutual clients on BlackRock’s Aladdin platform can factor margin-based analytics into their pre- and post-trade decision making for derivatives.
Annabel Smith – The Trade
BlackRock has entered into a strategic partnership with derivatives analytics provider Cassini Systems that will see its margin-based analytics integrated into the Aladdin platform.

TORA expands presence in Asia with appointment of Hong Kong director; Hong Kong director at TORA will be responsible for growing business on the Asian buy and sell-side for the tech provider’s multi asset trading platform.
Annabel Smith – The Trade
Trading systems provider TORA has expanded its Asia Pacific team with the appointment of a new director of Hong Kong. Mike Langton joins TORA as director of Hong Kong from Apex Group where he was head of the middle-office for a year.

How payments became a magnet for money
Lynne Marek – Paymentdive.com
In my 25 years of business reporting, I’ve never seen anything like the amount of venture capital flowing into the payments space–it’s just staggering. Since launching PaymentsDive coverage on March 1, I’ve watched in amazement as billions of dollars flow to young companies remaking everyday payment systems that power the global economy. It’s changing the way migrant workers send money to home countries, how employers compensate workers, and how businesses pay suppliers, among so many other things.

Amazon Payment Services Launches Amazon Fintech Lab To Foster Innovation In Payment Services At Dubai’s DIFC Innovation Hub
Amazon Payment Services, a payment processing service in the Middle East and North Africa (MENA) region, has launched the Amazon Fintech Lab in the DIFC Innovation Hub. The initiative is the latest in Amazon Payment Services’ efforts to support fintech in the region by providing a forum for discussions on digital payments and the future of the fintech industry.


Alibaba Falls Victim to Chinese Web Crawler in Large Data Leak
Yang Jie and Liza Lin – WSJ
A Chinese software developer trawled Alibaba Group Holding Ltd. ‘s popular Taobao shopping website for eight months, clandestinely collecting more than 1.1 billion pieces of user information before Alibaba noticed the scraping, a Chinese court verdict said.

Political Summits Signal International Focus on Ransomware
Catherine Stupp – WSJ
The attention of world leaders to ransomware in a series of high-level meetings highlights how quickly the destructive cyberattacks have climbed the political agenda as a string of recent attacks disrupted companies and critical infrastructure in the U.S. and other countries.

SEC charges mortgage title issuer First American with cybersecurity vulnerability violation
Kelsey Ramirez – Fox Business
The Securities and Exchange Commission (SEC) on Tuesday announced settled charges against First American Financial Corp., one of the largest mortgage title and settlement services companies in the U.S., alleging cybersecurity breaches when the company exposed sensitive personal information of its customers and did not follow proper incident response when informing customers about the leak.

The Justice Department is racking up wins despite encryption concerns
Joseph Marks and Aaron Schaffer – TWP
The Justice Department has been racking up significant victories against criminals who rely on encrypted communications — even as it maintains that the strongest form of encryption makes its work harder.


Digital Assets to Transform Financial Infrastructure
Shanny Basar – Traders Magazine
Talos, an institutional technology provider for digital asset trading, has raised $40m (EUR33m) while State Street has launched a new division for digital finance. In May 2021 Talos announced the completion of a $40m Series A investment round led by venture capital firm Andreessen Horowitz. Other investors included PayPal Ventures, Fidelity Investments, Galaxy Digital, Elefund, Illuminate Financial, and STEADFAST Capital Ventures.

The First Centralized Exchange Supports Decentralized Tradings
Beowulf PTE LTD
Beowulf Blockchain, the global leader for decentralized cloud communications, announced today their support for on-chain trading services on its centralized exchange platform Defiato.com. This groundbreaking on-chain trading service allows mass users who want to trade tokens employing the so-called tax structure (i.e. Safemoon protocol) to the transactions to do so freely without technical barriers, just as they trade with their centralized exchanges.

Bakkt Expands Reach of the Digital Wallet Experience to Send Digital Assets to Anyone; Peer-to-Peer capabilities enable users to send bitcoin, gift cards and cash through the Bakkt App to anyone, including non-Bakkt App users
Bakkt Holdings, LLC
Bakkt Holdings, LLC (“Bakkt”), the digital asset marketplace behind the Bakkt App, unveiled broader Peer-to-Peer (P2P) capabilities that enable Bakkt users to send bitcoin, gift cards and cash to anyone, including those not currently using the Bakkt App. Current Bakkt App users now have the versatility to instantly and seamlessly send digital assets to family, friends or broader social circles. “We are excited to introduce our P2P to anyone capabilities to broadly expand consumer payment options in the digital asset space”

Court Grants SEC’s Motion to Extend Discovery Period in Ripple Case
Matthew De Saro – be[IN]Crypto
A Judge has granted the Securities and Exchange Commissions’ (SEC) motion for an additional two months of time to conduct discovery in their case against Ripple. XPR holders have themselves been holding on while they wait for any indication that the SEC’s case against Ripple is nearing a conclusion. But, according to a tweet by attorney James K Filan, the wait might be a bit longer. Filan shared the news that the SEC’s request to extend the discovery period of the investigation by 60 days was granted.

Will Bitcoin Be El Salvador’s Passport to Riches? A golden visa plan designed to attract the crypto-wealthy doesn’t look like a boon for financial inclusion.
Lionel Laurent – Bloomberg
Nayib Bukele, El Salvador’s populist, social media-savvy president, has bedazzled the ruby-red laser eyes that dot the Twitter profiles of Bitcoin fanatics. They’re cheering his decision earlier this month to hitch his country’s wagon to the cryptocurrency. Beyond the true believers, however, the reception has been chillier. And that’s what should be on his mind.

FTX’s Sam Bankman-Fried on Going Public, SPACs and a Bitcoin ETF
Vildana Hajric and Katherine Greifeld – Bloomberg
FTX doesn’t have plan to go public but is doing due diligence; Says conversation over Bitcoin mining energy is worth having
Over the past year, the cryptocurrencies market has become more popular than ever thanks to surging prices and greater institutional interest. In that environment, few have made as big a splash as Sam Bankman-Fried, the 29-year-old founder and chief executive officer of the cryptocurrency derivatives exchange FTX.

MicroStrategy triples down on bitcoin; Michael Saylor’s bitcoin barge keeps on growing.
Jemima Kelly – FT
We have been forced to write about MicroStrategy and its yachtophile CEO Michael Saylor a few times lately. For those not in the know, that’s the company that decided to invest billions of Federal Reserve-backed strings of 1s and 0s into bro-backed strings of 1s and 0s, and turn its equity into a HODL proxy.

Adopting Bitcoin as Legal Tender Could Collapse El Salvador’s Economy, Steve Hanke Says; Bitcoin holders elsewhere could suck up all the dollars in El Salvador “like a vacuum cleaner.”
Jamie Crawley – Coindesk
El Salvador’s adoption of bitcoin (BTC, -3.13%) as legal tender could completely collapse its economy, according to Steve Hanke, professor of applied economics at Johns Hopkins University.

Central bank digital cash will complement cryptos: analysts
Divya Chowdhury – Reuters
Central bank digital currencies will complement cryptocurrencies rather than competing with them despite not being structurally different from their country’s fiat currencies, strategists and fund managers said.


‘Time Is Running Out’ in Brexit Row Over N. Ireland, Frost Says
Tim Ross – Bloomberg
Talks aimed at resolving the dispute over post-Brexit trade in Northern Ireland are failing to make progress and running out of time, British minister David Frost said. Speaking to a committee in Parliament in London, Frost said the government was “extremely concerned” over the risks to political stability in the region and a solution to the dispute with the European Union must be found soon.

Biden Should Shed Diplomacy With Putin on Cyber Warfare; The U.S. president needs to respond forcefully to a series of egregious Russian computer hacks.
Timothy L. O’Brien – Bloomberg
President Joe Biden has spent his political career steeped in, and observant of, the rituals of global diplomacy. President Vladimir Putin of Russia, a former intelligence operative, deploys statecraft as a blunt instrument.

Big Tech critic Lina Khan to lead US competition regulator; Joe Biden appoints 32-year-old professor as chair of Federal Trade Commission
James Politi and Dave Lee – FT
Joe Biden has appointed Lina Khan, a prominent critic of the power of large technology companies, to chair the Federal Trade Commission.

Court blocks Joe Biden’s pause on US oil and gas leases; Ruling in favour of pro-fossil fuel states deals blow to president’s climate change shift
Myles McCormick – FT
A judge on Tuesday cleared the way for oil and gas leases to resume on US public lands by blocking a decision by Joe Biden’s administration to suspend them, dealing a blow to the president’s efforts to shift the country away from fossil fuels.

The graveyard of empires calls to China; Military presence may accompany the extension of the Belt and Road Initiative to Afghanistan
The editorial board – FT
Afghanistan is not known as the graveyard of empires for nothing. Alexander the Great, the British empire, the Soviet Union and now mighty America, all have been humbled in their attempts to conquer this fierce country. Now China, the world’s nascent superpower, risks falling into the same trap before it has even properly begun its own neo-imperial project.

Banning political talk at work is a lazy move; Making time for difficult conversations is hard but vital if organisations are serious about ‘purpose’
Elizabeth Uviebinene – FT
An aspiration to “social purpose” has embedded itself across the business world in recent years, appearing on company websites, mission statements and social media accounts. Brands keep telling us they are ethical, sustainable and diverse. Business, it seems, is now good for us.

Brexit a ‘one-off’ chance for UK to escape EU red tape, says task force; Opportunity for new regulatory framework to encourage innovation, growth and inward investment
Jim Pickard and Daniel Thomas – FT
Britain should rip up EU data protection laws and the system for clinical trials for drugs and give pension funds greater freedom to invest in fast-growing tech companies, according to the task force set up by Downing Street to free businesses from Brussels red tape following Brexit.

As Pandemic Recedes in U.S., Calls Are Growing for an Investigative Commission; Bills have been introduced in both houses of Congress to create a bipartisan panel, but a leader of the Sept. 11 commission thinks a nonpartisan effort would have more success in the current climate.
Sheryl Gay Stolberg – NY Times
The lawyer who led the inquiry into the Sept. 11 attacks has quietly laid a foundation for a nonpartisan commission to investigate the coronavirus pandemic, with financial backing from four foundations and a paid staff that has already interviewed more than 200 public health experts, business leaders, elected officials, victims and their families.


CFTC Charges Former Energy Broker and Its Owner with Misappropriation of Nonpublic Information, Fraud, and Supervision Violations
The Commodity Futures Trading Commission today announced that it has issued an order filing and settling charges against former introducing broker Classic Energy LLC and its owner, Mathew D. Webb of Houston, Texas for participating in a scheme to misappropriate the confidential block trade order information of Classic’s brokerage customers and facilitate fictitious trades. Webb and Classic are also charged with a scheme to defraud these brokerage customers by paying kickbacks to certain individual traders of these customers, as well as supervision violations and making false statements to ICE Futures US (ICE).

AAT dismisses application for review of ASIC banning order
The Administrative Appeals Tribunal (AAT) has dismissed an application for review of ASIC’s decision to permanently ban former financial advisor, Mr Robert Hutchison, from providing financial services. On 9 June 2021, Mr Hutchison failed to appear at an AAT directions hearing dealing with the review application after remittal from the Federal Court. The AAT dismissed the matter for non-appearance.

ASIC makes new market integrity rules for capital
ASIC has made new market integrity rules for capital, providing important protections for investors and the integrity of the market, whilst simplifying the capital framework for market participants. The ASIC Market Integrity Rules (Capital) 2021 (Capital Rules) will replace the existing separate rule books for securities market participants and futures market participants to create a common set of rules for capital.

ASIC review of 31 December 2020 financial reports
ASIC today announced the results from its review of the financial reports of 85 listed entities for the year ended 31 December 2020. The review was conducted as part of ASIC’s ongoing risk-based reviews of financial reports.

SEC, NASAA, and FINRA Offer Free Resource to Securities Firms to Assist in Detection, Prevention and Reporting of Financial Exploitation of Seniors; Regulators Providing Free Training in Recognition of World Elder Abuse Awareness Day; Program Aims to Assist Firms in Implementing Requirements of Senior Safe Act
In recognition of World Elder Abuse Awareness Day, the U.S. Securities and Exchange Commission (SEC), the North American Securities Administrators Association (NASAA), and the Financial Industry Regulatory Authority (FINRA) today announced a new resource intended to assist securities firms in implementing the training requirements of the Senior Safe Act.

Six Charged in Silicon Valley Insider Trading Ring
The Securities and Exchange Commission today announced insider trading charges against a Silicon Valley trading ring whose members generated nearly $1.7 million in illegal profits and losses avoided by trading on the confidential earnings information of two local technology companies.

ESMA publishes its 2020 Annual Report
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published its Annual Report, which reviews its achievements in 2020 against its priorities and objectives in meeting its mission of enhancing investor protection and promoting stable and orderly financial markets in the European Union.

Podcast: Building Board Diversity: FINRA’s Ongoing Commitment
Diversity has been a focus for FINRA’s Board of Governors for several years—and while the current Board makeup leaves a lot to be proud of, the important work of diversity remains a perpetual work in progress. On this episode, we sit down with Marcia Asquith, Executive Vice President of Board & External Relations, and Jennifer Piorko Mitchell, Vice President of Corporate Governance and Deputy Corporate Secretary, to explore how FINRA has prioritized diversity in the boardroom.

Addressing and Reporting Financial Exploitation of Senior and Vulnerable Adult Investors; Training for the Securities Industry
NASAA, the SEC, and FINRA have provided this training presentation as a service to the securities industry. Firms can use this presentation to train associated persons about how to detect, prevent, and report financial exploitation of senior and vulnerable adult investors. The training serves as a resource for firms implementing the requirements of the federal “Senior Safe Act” (Section 303 of the ”Economic Growth, Regulatory Relief, and Consumer Protection Act”) and the state training requirements for certain firms and financial institutions relating to senior investor protection and set forth in Connecticut Gen. Statutes 16b.463.

CFTC Fines Brazilian Soybean Producer for Reporting Violations
The Commodity Futures Trading Commission today issued an order filing and simultaneously settling charges against Amaggi Exportação e Importação Ltda. (Amaggi), a corporation based in Brazil, for failing to file timely—and accurate—CFTC Form 204 reports regarding their fixed price soybean positions. The order requires Amaggi to pay a $175,000 civil monetary penalty and to cease and desist from violating CFTC Regulation 19.01.

CFTC Charges Former Energy Broker and Its Owner with Misappropriation of Nonpublic Information, Fraud, and Supervision Violations
The Commodity Futures Trading Commission today announced that it has issued an order filing and settling charges against former introducing broker Classic Energy LLC and its owner, Mathew D. Webb of Houston, Texas for participating in a scheme to misappropriate the confidential block trade order information of Classic’s brokerage customers and facilitate fictitious trades. Webb and Classic are also charged with a scheme to defraud these brokerage customers by paying kickbacks to certain individual traders of these customers, as well as supervision violations and making false statements to ICE Futures US (ICE).

The FCA and the Bank of England encourage market participants in a switch to SOFR in US dollar interest rate swap markets from 26 July
Following close engagement with market participants, and to support the US-led ‘SOFR First’ initiative, the FCA and Bank of England support and encourage liquidity providers in the US dollar linear interest rate swaps market to adopt new trading conventions for interdealer trading based on SOFR instead of LIBOR from 26 July this year. This is to facilitate a shift in market liquidity towards SOFR, bringing benefits for a wide range of users as they move away from LIBOR.

Analysis: Investors ask U.S. SEC for more ESG disclosures as companies resist
Katanga Johnson – Reuters
Investor groups have asked the U.S. Securities and Exchange Commission for more corporate disclosures on climate change and other environmental, social and governance (ESG) issues while business interests have pushed back, a Reuters review of correspondence published by the regulator shows.

Securities Regulators’ Study Reveals Many Canadians Unaware Of The Signs Of Financial Elder Abuse – Initiatives Launched Across Canada To Raise Awareness Ahead Of World Elder Abuse Awareness Day
The Canadian Securities Administrators (CSA) today published results of a new survey that found nearly 29 per cent of Canadians know a victim of financial elder abuse, while 42 per cent said they could not recognize the signs of financial abuse and only 47 per cent knew where to report cases of abuse.

Justice Department Recognizes World Elder Abuse Awareness Day; Files Cases Against Marketing Company and Executives Who Knowingly Facilitated Elder Fraud
Department of Justice
The Justice Department today announced criminal charges in two separate cases against defendants accused of knowingly furnishing fraud schemes with information on elderly potential victims. The charges coincide with World Elder Abuse Awareness Day, a day intended to raise public awareness of the fight against elder abuse, neglect and financial exploitation.

Former Energy Broker Pleads Guilty to Insider Trading and Kickback Scheme
Department of Justice
A former Texas energy broker pleaded guilty Monday to conspiracy to commit commodities fraud and wire fraud and to violate various provisions of the Commodity Exchange Act for his role in an insider trading and kickback scheme. According to court documents, Mathew Webb, 51, of Tiki Island, admitted he conspired with others to misappropriate material, nonpublic information and to use that information to engage in fraudulent, pre-arranged trades in natural gas futures contracts. He shared the net profit from these fraudulent trades with others involved in the fraudulent trading scheme. Webb further admitted he and others agreed to falsely document certain proceeds as income on IRS forms in part to conceal the true nature of the funds and to make the illicit profits appear to be legitimate income paid.

Investing and Trading

Did No One Hear Jamie Dimon Warn About Trading? JPMorgan’s CEO said a year ago that the boom in trading stocks and bonds couldn’t last. The slowdown has now arrived, and shareholders appear nervous.
Brian Chappatta – Bloomberg
JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon surprised some analysts on Monday by suggesting that trading revenue at the largest U.S. bank will likely reach just above $6 billion in the second quarter, falling short of current estimates. Anyone who listened to him 11 months ago could have already seen this coming.

Latest Blow to 60/40 Model Is Exodus of Mom and Pop Pensions
Ruth Carson and Claire Ballentine – Bloomberg
Retirees join banks, funds in abandoning stocks/bonds ratio; Inflation, meme stocks, Bitcoin contribute to dumping of bonds
Peter and Lynette Griffith had two-thirds of their retirement savings in shares during the 2008 financial crisis. By the time they stopped contributing to their pension fund last year, it was 100%.

Meme Stocks Aren’t New, But Their Biggest Fans Are; The difference from the Nifty Fifty or dot-com mania is that now anyone with a dollar and a smartphone has the power to move markets.
Nir Kaissar – Bloomberg
Get used to meme stocks because they’re not going away. The meme stock frenzy that has gripped financial markets this year started in January when shares of video game retailer GameStop Corp. skyrocketed to nearly $350 from around $20 in just two weeks. Other once-sleepy stocks have shot up to varying degrees since then, such as movie chain AMC Entertainment Holdings Inc. and home goods retailer Bed Bath & Beyond Inc.

Why is Wall Street’s fear gauge so low? Investors urged to have ‘eyes wide open about what is coming next’
Naomi Rovnick and Eva Szalay – FT
After inflation fears shocked investors in the first few months of 2021, markets have switched into a different mode: a deep slumber. The Vix, a measure of expected volatility in Wall Street’s S&P 500 equity index, dwindled to a pandemic-era low of 15.7 points on Friday, having surged above 80 during the early stages of the pandemic. A measure of volatility on foreign exchange markets produced by Deutsche Bank also dropped to its lowest point since February 2020 last week.

Oil likely to hit $100 a barrel, say top commodity traders; Executives point to a slowdown in investment in supplies before demand has peaked
David Sheppard and Neil Hume – FT
The world’s top commodity traders have forecast a return to $100-a-barrel oil, as investment in new supplies slows down before demand has peaked and before green alternatives can take up the slack.

Uranium Investors Have Become Overly Reactive; Uranium-related stocks tumbled after a performance issue at Chinese nuclear power plant. Market reaction seems overdone.
Jinjoo Lee – WSJ
A group of uranium mining companies saw their stock prices plunge on Monday after news emerged that a nuclear power plant in Southeast China flagged a performance issue. It was yet another unnecessary investor meltdown.

Platinum Equity Strikes Deal to Buy McGraw Hill From Apollo; Deal for the textbook publisher is valued at about $4.5 billion, including debt
Miriam Gottfried – WSJ
Private-equity firm Platinum Equity has struck a deal to buy McGraw Hill from Apollo Global Management Inc. APO 0.87% The deal for the textbook publisher and educational-technology company, announced Tuesday following an earlier report by The Wall Street Journal, is valued at about $4.5 billion, including debt.

Environmental, Social and Corporate Governance

Companies With $2.1 Trillion of Debt Face Natural Capital Risks; Moody’s singles out 12 industries, including mining, oil and gas, and shipping.
Alastair Marsh – Bloomberg
Companies with $2.1 trillion of debt are heavily dependent on nature for resources and materials, even as many of them contribute to its destruction, according to Moody’s Investors Service.

Shedding Some Light on the Murky World of ESG Metrics; A new study illustrates how a lack of universal standards and transparency across industries means ratings don’t really amount to much.
Tim Quinson – Bloomberg
Two years ago, researchers at the University of Chicago Booth School of Business started collecting data to determine the real social and environmental credentials of companies in the S&P 500.

Axa Will Stop Investing in Firms Linked to Deforestation, Biodiversity Loss; The Paris-based company says it will engage more with companies to push them to be more sustainable
Benjamin Robertson – Bloomberg
AXA SA’s investment management arm will stop investing in companies that contribute to deforestation or the loss of biodiversity. The new policy, which comes into effect on Wednesday, targets firms involved in cattle, soy, and timber extraction industries, AXA Investment Management said in the statement. It’s an extension of an existing ban on investing in palm oil producers that haven’t been certified sustainable.

Wind Industry Calls for Ban on Old Turbine Blades in Landfills
Will Mathis – Bloomberg
Wind companies vow not to ship turbines to overseas landfills; The blades may need to be redesigned to be recyclable
Europe’s wind-power industry is calling for an end to one of the dirtiest parts of its business. Countries across Europe should ban old turbine blades from going into landfills by the middle of the decade, industry group Wind Europe said Wednesday.

Oil Trader CFOs Say Banks Are Demanding Green Targets for Loans
Andy Hoffman and Vanessa Dezem – Bloomberg
Trading firms need ‘clear ambition’ for energy shift: Gunvor; ESG concerns now at the ‘forefront’ of the business: Mercuria
The finance chiefs of the world’s biggest oil trading houses said banks are increasingly demanding they meet environmental, social and governance targets to access loans critical to their business. Lenders want to see a clear strategy for the energy transition, Gunvor Group said Wednesday, while Mercuria Energy Group Ltd. said ESG is now a priority.

Global shipping summit all at sea over carbon emissions; Tensions within UN regulator on climate change threaten progress on industry tax
Harry Dempsey – FT
Shipping’s global regulator aims to seal consensus this week on measures to cut carbon dioxide emissions this decade which would keep alive the possibility of a transformational international pollution tax on the industry.

UK failing to plan for impact of climate change despite warnings; Government adviser says country worse prepared to tackle global warming than five years ago
Camilla Hodgson – FT
The UK government’s environmental adviser has accused ministers of failing to plan for the “inevitable” impact of climate change, despite its repeated warnings, leaving the country worse prepared to tackle global warming than it was five years ago.

FTSE Russell threatens to expel 208 ESG offenders from FTSE4Good; The index provider has given the companies 12 months to meet its tighter climate-performance standards
Steve Johnson – FT
More than 200 companies are in danger of being thrown out of a family of FTSE Russell stock indices for failing to meet more stringent environmental standards.

Britain’s largest investor blacklists AIG over climate risk concerns; LGIM drops US insurer from £58bn portfolio for having no policy on thermal coal or disclosure of emissions
Camilla Hodgson – FT
Britain’s biggest investor has dropped AIG from some of its funds over concerns that the US-based insurance group has “insufficient” policies in place over climate change risks.


Credit Suisse has lost at least 45 execs, bankers, and traders after a string of scandals in recent months. Here’s who left and where they’re going.
Samantha Stokes – Insider
Nearly 50 senior employees have parted ways with Credit Suisse during recent months, according to hiring announcements by other banks, a review of reported exits, and people familiar with the moves.

Citi Latest to Warn of Bigger-Than-Expected Trading Drop
Jennifer Surane – Bloomberg
Bank’s shares fall after CFO warns of weakness in fixed income; JPMorgan had earlier signaled that trading revenue would fall
Citigroup Inc. dropped after Chief Financial Officer Mark Mason signaled that revenue from the bank’s trading operations will probably fall by around 30% from a year ago — as Wall Street braces for a pandemic-driven boom to run out of steam.

Goldman Sachs Is Watching All Your Diamond Hands; Analysts are collecting retail trading data, which they say can act as a leading indicator for stock gains.
Tracy Alloway – Bloomberg
For years, Wall Street has combed through reams of sentiment data to try to gauge how retail investors are feeling about stocks. Since meme-investing burst onto the scene, those efforts have included watching Reddit message boards to try to get a grip on how an army of small investors are approaching (and affecting) the market while tracking trading volume to gauge how much of it comes from investors on platforms like Robinhood.

Podcaster turned tech investor raises $140m fund; Harry Stebbings secures investment from MIT and Rothschild-backed RIT Capital Partners
Tim Bradshaw – FT
A 24-year-old law school dropout from south-west London who as a teenager started a popular podcast about tech investing has raised $140m in new funds to back start-ups. Harry Stebbings has secured investment from the Massachusetts Institute of Technology and Rothschild-backed RIT Capital Partners, as well as the founders and early backers of Spotify, Calm and Atlassian, for his 20VC fund.

Goldman Sachs reportedly plans to move more than 100 bankers to Florida
Lydia Moynihan – NY Post
Working from home is no longer an option at Goldman Sachs — but working from Florida might be another story. More than 100 key Goldman Sachs employees are reportedly poised to migrate from the firm’s New York headquarters to a new office in Palm Beach, Florida.

MUFG promotes GCIB deputy to head up division as vice chairman; Incoming vice chairman will provide senior relationship support to MUFG’s clients worldwide in a newly created role.
Wesley Bray – The Trade
Mitsubishi UFJ Financial Group (MUFG) has promoted its deputy chief executive of global corporate and investment banking (GCIB) to head up the division as vice chairman.


London Night Life Needs More Support, Says Lamé
Bloomberg Video
London’s Night Czar Amy Lamé discusses the U.K. government’s decision to delay a June 21 reopening. She speaks with Anna Edwards on “Bloomberg Markets: European Open.”

Denmark’s first meme stock plunges another 37% as a key broker warns of the risks extreme trading poses to investors
Shalini Nagarajan – Insider
Shares in Danish biotech Orphazyme tumbled in regular European market hours on Monday as last week’s massive surge during US trading reversed after the weekend. When trading opened in Copenhagen, its stock plunged as much as 37%. Shares had already fallen 50% on Friday after the company said it wasn’t aware of any reason for the extreme volatility behind the stock move.

Home-Working Boom Risks Loss of 6 Million U.K. Professional Jobs
Lizzy Burden – Bloomberg
Study finds one in five roles now done by ‘anywhere’ workers; Warning issued by institute founded by former premier Blair
One in five jobs based in the U.K. could be outsourced to other countries in the wake of the coronavirus pandemic, threatening the loss of well-paid white collar employment. That’s according to the Tony Blair Institute for Global Change, which warned that 5.9 million “anywhere” workers — from graphic designers to software programmers — are at risk, many of them in London and southeast England.

California Defies Doom With No. 1 U.S. Economy; The Golden State has no peers when it comes to expanding GDP, raising household income, investing in innovation and a host of other key metrics.
Matthew A. Winkler – Bloomberg
When misfortunes multiplied during the coronavirus pandemic, observers seized on a four-letter word signaling end of days for the largest state with one-eighth the U.S. population and 14% of its gross domestic product. “California doom: Staggering $54 billion deficit looms,” the Associated Press concluded a year ago in May. “California Is Doomed,” declared Business Insider two months earlier. “Is California doomed to keep burning?” queried the New Republic in October. California is “Doomed” because of rising sea levels, according to an April EcoNews Report. Bulletins of people leaving the world’s fifth-biggest economy for lower-cost states because of high taxes and too much regulation stifling business continue unabated.

Phuket Reopening Offers Model for Asia as Travel Bubbles Burst
Randy Thanthong-Knight – Bloomberg
Thailand to open Phuket to quarantine-free travel in July; Tourist hotspots like Bali and Phu Quoc could follow lead: Ho
Thailand’s plan to reopen the tourist haven of Phuket could become a model for other vacation hotspots in Asia to prise open their borders and bring in visitors as strategies such as travel bubbles falter, according to the founder of Banyan Tree Holdings Ltd.

U.K. Tech Investment Quadruples as Deals Growth Outpaces Europe
Amy Thomson – Bloomberg
Equity investments in smaller U.K. “deep tech” businesses rose nearly three fold in the past five years, driven by deals growth that outpaced increases in the U.S. and the rest of Europe, according to a report from the British Business Bank.

Kim Jong Un sounds alarm over North Korean food shortages; Economy has been battered by Covid but dictator has refused to accept foreign aid
Edward White and Kang Buseong – FT
North Korean dictator Kim Jong Un has warned of food shortages and urged officials to boost agricultural production as the country struggles with pandemic-related border closures, crippling economic sanctions and a series of typhoons and floods.

China hog futures fall to record low on fears of pork glut; Market becoming inundated as farmers slaughter pigs over fears prices will continue to fall
Hudson Lockett and Thomas Hale – FT
Hog futures in China have fallen to record lows as mass slaughtering of pigs prompts fears that the world’s second-biggest economy faces a deluge of pork.

Turkey’s Troubles Point to Emerging-Market Risks as Economies Recover; President Erdogan has demanded rate cuts, but the central bank must contend with inflation
Caitlin Ostroff – WSJ
Any signal that the Federal Reserve will tighten policy on Wednesday could ripple across emerging markets that are dependent on the U.S. dollar. Prime among them is Turkey. The Turkish lira has come under pressure in recent weeks as investors try to assess whether the country’s central bank will heed the demands of its president to cut interest rates. But a rate cut could drag the lira down further at the same time that the country’s high inflation rate is already diminishing the currency’s buying power.


What to Do With This Year’s Bumper Strawberry Crop; Mild, consistent weather has produced a spectacular strawberry harvest. Here are four recipes to make the most of it.
Kate Krader and James Tarmy – Bloomberg
Last Friday, Earl Bunting welcomed visitors to his Limington, Maine, orchard for “pick your own” strawberry season. “We opened at 7 a.m.,” says Bunting, “and when we opened, our parking lot was full.”

The Return to the Office Is Pushing Even More Women Out of Work; Companies are asking people back, but there’s less child care than ever. Moms are paying the price.
Jeff Green, Carolina Gonzalez, and Julia Fanzeres – Bloomberg
The pandemic took a toll on the careers of many working mothers. A rush back to the office is shaping up to be just as damaging. The lack of child care and in-person schooling that has pushed millions of women out of the workforce in the U.S. since March 2020 has only gotten worse. Though businesses including Microsoft Corp., Amazon.com Inc. and Netflix Inc. responded with backup day care and emergency leave, much of that was temporary and is coming to an end. The $53 billion in federal rescue funds to keep day-care centers running and to reopen shuttered care was a stopgap.

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