The End of Snow Threatens to Upend 76 Million American Lives

Aug 3, 2022

First Read

Hits & Takes
John Lothian & JLN Staff

There is now a JohnLothianNews TikTok account and the first video is from our MarketsWiki Education Shorts video series featuring talks from the World of Opportunity that have been boiled down. The first video we posted is of Julie Winkler of CME Group talking about innovation in the futures industry, edited from a previous MarketsWiki Education World of Opportunity event in Chicago.

Today JLN’s Alex Teng has an interview with Robert Whaley in Options Discovery. Whaley is director of financial markets research at Vanderbilt University and known for his work developing the VIX for Cboe. This is a long interview as there is a lot to talk about. Congratulations to Alex on the interview.

There are more smiles around Eurex’s offices these days as the July volume numbers showed total traded derivatives volume was up 16 percent compared to the same month last year and interest rate derivatives showed the strongest growth, up 31 percent year on year. Total repo volumes increased 57 percent year on year and the national outstanding in long-dated OTC interest rate swaps was up 28 percent.

In the latest edition of the SEC’s “Office Hours with Gary Gensler” the subject is “What Did the Sarbanes-Oxley Act do?”

Cassandra Seier is starting a new position as head of international capital markets at NYSE. She was previously with Goldman Sachs for 23 years.

Steven Silver is starting a new position as chief marketing officer at Velocity Clearing LLC. He was previously at Vision Financial Markets for 16 years and before that at Goldman Sachs.

Nick Baker is leaving Bloomberg in Chicago and taking the role of deputy editor-in-chief at CoinDesk.

Trading Technologies is looking for a staff accountant. The position is in Chicago and involves all the breakfast cereal you can eat. Details are HERE.

The Options Insider interviewed Rick Tomsic, who is now part of NinjaTrader after its acquisition of Tradovate. This podcast discusses the latest from NinjaTrader and Tradovate and the new nano bitcoin futures from Coinbase. Here is the podcast.

Yesterday I included a link to an interview with Terry Belton, which I thought was an edited version that was published. Instead, it was an unedited version that was somehow published to the internet that I found via Google. We have a technical term for this. OOPS!

Good luck to my friend Bevon Joseph and the 20 Greenwood Project Scholars who will be ringing the closing bell of the New York Stock Exchange today. It is a dream come true for Bevon, tremendous exposure for this great program and for these talented young people. It is something they will never forget.

I had to go all the way to Amsterdam to ring the closing bell of the then-NYSE Euronext exchange there in 2011. Jessica Darmoni, then Titlebaum, is also pictured along with NYSE Euronext’s Alan van Griethuysen

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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The Spread: Options Discovery Episode 5; Complete Interview: Bob Whaley; How price volatility impacts the value of options
JohnLothianNews.com

In episode 5 of Options Discovery, Alex Teng discusses options volatility, beginning with the basics of what is volatility? He talks about how to calculate historical volatility with a set period of historical data using excel or a spreadsheet calculator. He also explains the relationship between historical volatility and implied volatility, and interviews Professor Bob Whaley, who is the director of financial markets research at Vanderbilt University. Whaley is also well known for his work developing some of the most widely used volatility indexes, such as the CBOE VIX and the VXN.

Watch the video »

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Complete Interview: Bob Whaley Discusses Options Volatility and Volatility Indexes With JLN’s Alex Teng
JohnLothianNews.com

In this exclusive interview for JLN, Alex Teng sits down with Robert Whaley, a professor and the head of market research at Vanderbilt University, to discuss options volatility and Whaley’s work creating some of the most important volatility indexes in the industry.

Watch the video »

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Sponsored Content
Russell 2000 Index quarterly chartbook – Q2

Russell 2000: The premier investable small-cap US equity index. Explore our Chartbook: A complete interactive experience – Market performance, IPOs, sectors breakdown, risk characteristics.

• Representing the US small cap market segment, the total market capitalization of the Russell 2000 Index decreased 14.3% from $3.5 trillion as of last year’s June reconstitution to $3.0 trillion.

• The largest company in the index (with banding applied) is STAG Industrial, with a total market cap of $6.4 billion, a 12.3% decrease from last year’s largest company.

• The smallest company in the index is Akoustis Technologies with a total market cap of $240.1 million, a decrease of 6.6% from $257.1 million in 2021.

• There is a total of 308 companies joining the Russell 2000 Index, with 39 dropping down from the Russell 1000 Index / Russell Midcap® Index, and 76 shifting up from the Russell Microcap® Index (25 of which are allocated to the Financials industry and another 11 allocated to the Consumer Discretionary industry and 10 Energy companies).

• 19 IPOs are being added to the Russell 2000, with 4 of them classified in the Health Care industry, while 176 companies are joining from outside the Russell US Indexes universe.

• The largest addition to the small cap index by size is Alight (Industrials) with a total market cap of $4.5 billion.

• 315 companies are departing the Russell 2000 Index. 21 companies are moving to the Russell 1000 Index, 249 are moving to the Russell Microcap Index, and another 45 companies are leaving the Russell US Indexes universe altogether.

Read Now: INTRO – Russell 2000 Index quarterly chartbook Q2 2022 (foleon.com)

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The Greenwood Project to Ring Closing Bell at The New York Stock Exchange; Greenwood Project, a Chicago-based nonprofit organization supported by Citadel and Citadel Securities, provides high school students with critical skills and exposure to career opportunities in finance.
Greenwood Project
The Greenwood Project announced today that it will ring the closing bell at the New York Stock Exchange (NYSE) on August 3, 2022. Attendees will include Greenwood Project students, alumni, and staff alongside employees of Citadel and Citadel Securities. This year, Greenwood Project significantly expanded its summer FinTech Institute, which serves students primarily from Chicago’s South and West sides, with funding from Citadel and Citadel Securities. Nearly 500 Black and Latinx students in Chicago have benefited from the initiative since it launched in 2016 with five students in a pilot program. More than 75% of the program’s alumni now work in finance.
/jlne.ws/3oSYf9C

****** Go get them, Greenwood Project. Push that button proudly!~JJL

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Europe’s Rhine River Is on the Brink of Effectively Closing; Water level at Kaub, Germany has dropped to lowest since 2018; Coal shipments have already been affected, says EnBW
Jack Wittels, Kwaku Gyasi, and Laura Malsch – Bloomberg
Water levels on the Rhine River are set to fall perilously close to the point at which it would effectively close, putting the trade of huge quantities of goods at risk as the continent seeks to stave off an economic crisis. The river at Kaub, Germany — a key waypoint for the shipment of commodities — is set to drop to 47 centimeters (18.5 inches) by the weekend. That would take it to within 7 centimeters of being all but impassable.
/jlne.ws/3Q0bvFu

****** Just think, on the positive side, it could be a whole new highway system for cars and trucks.~JJL

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Traders Are Big Fans of the ‘G’ in ESG; Governance ranks above all, a Bloomberg survey shows, since avoiding regulatory scrutiny is their top priority.
Tim Quinson – Bloomberg
There’s been much debate about which letter matters most to investors in the abbreviation ESG. Numerous surveys have been done on the topic, with many concluding that the “E” for environmental carries the most weight. Others suggest that trying to evaluate companies based on their combined environmental, social and governance credentials leads nowhere because the terms are incongruous and should be assessed separately. Despite the various viewpoints, ESG has grown into an estimated $35 trillion business with a plethora of investment products (and a growing consensus that many if not most of them do little if anything but pay lip service to ESG). With so much money to be made, asset managers everywhere are devoting more resources to building out their “sustainable” investing teams as more funds gravitate to the industry.
/jlne.ws/3Q0cnKg

***** We are working on a major ESG project and one of the things we are doing is asking people to define E, S and G. If you are interested in defining one of these and talking about what it means to you and your business, and are willing to be part of a video, reach out to me at johnlothian@johnlothian.com

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The sweetest job opening ever: $78,000 a year to taste candy while sitting on your couch
Alexandra Peers – CNN
A Canadian candy company is offering a very sweet gig.
Candy Funhouse, an online retailer of confectionery treats from chocolate bars to gummies and licorice, is hiring for a $78,000 a year ($100,000 Canadian), work-from-home job as its Chief Candy Officer. Duties include: “leading candy board meetings, being the head taste tester … and all things fun.”
/jlne.ws/3OWhQAg

*****Job requirement, high body metabolism.~JJL

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Tuesday’s Top Three
Our top story Tuesday was SEC charges 11 in ‘massive’ crypto Ponzi scheme, about the “fraudulent pyramid scheme” known as Forsage, from The Financial Times. Second was They Quit Goldman’s Star Trading Team, Then the Bank Raised Alarms, from Bloomberg Wealth. Third was A legendary options trader who banked 70 consecutive months of profits above six figures shares his top 4 tips, about Tony Saliba, from Business Insider.

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MarketsWiki Stats
26,963 pages; 239,988 edits
MarketsWiki Statistics

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Lead Stories

The End of Snow Threatens to Upend 76 Million American Lives; Disappearing snowpack is accelerating the historic drought across the Western US, and so far government responses haven’t matched the scale of the problem.
David R Baker, Brian K Sullivan, Kim Chipman and Mark Chediak Green – Bloomberg
The Western US is an empire built on snow. And that snow is vanishing. Since most of the region gets little rain in the summer, even in good years, its bustling cities and bountiful farms all hinge on fall and winter snow settling in the mountains before slowly melting into rivers and reservoirs. That snowmelt, often traveling hundreds of miles from mountain top to tap, sustains the booming desert communities of Las Vegas, Phoenix and Salt Lake City — even coastal Los Angeles and San Francisco. A civilization of more than 76 million people, home to Silicon Valley and Hollywood alike, relies on snow.
/jlne.ws/3oNahS6

Investors grow frustrated with hedge funds after historic losses; Industry is on track to post one of its worst years on record as long-short players struggle
Laurence Fletcher – FT
Hedge funds are heading for one of their worst years of performance on record, leaving investors frustrated with how many managers have failed to offset sharp falls in equity and bond markets. Funds were down 5.6 per cent on average in the first six months of 2022, according to HFR. While a narrower HFR daily index of performance shows them clawing back around 0.5 per cent last month, the industry is nevertheless on track for its second-worst year of returns since 1990, when the data provider’s records begin — beaten only by steep losses during the 2008 global financial crisis.
/jlne.ws/3JqQzF0

Trading Technologies to offer clients access to Nifty equity derivatives; The trading software provider will utilise the Connect, a joint initiative between Singapore Exchange and National Stock Exchange of India, to allow clients to take positions on India’s equity markets.
Wesley Bray – The Trade
Trading Technologies (TT) has begun offering clients access to Nifty equity derivatives through NSE IFSC-SGX Connect (the Connect), a new joint initiative between Singapore Exchange (SGX Group) and National Stock Exchange of India (NSE). Launched on 29 July, the Connect allows international and domestic market participants to take positions on India’s equity markets through futures based on the Nifty 50.
/jlne.ws/3ztZNvN

Robinhood cutting workforce by 23%
Hannah Lang – Reuters
Retail trading platform Robinhood Markets Inc (HOOD.O) said on Tuesday it is laying off about 23% of its employees, sending its shares down more than 3% in extended trading. The company is also changing its organizational structure to “drive greater cost discipline,” Robinhood Chief Executive Officer Vlad Tenev said in a blog post.
/jlne.ws/3Ql8dfT

***** Here is the FT’s version and the WSJ’s version of this story. ~JJL

Robinhood’s crypto arm fined $30 mln by New York State’s financial regulator
Reuters
New York State’s financial regulator has fined the crypto arm of Robinhood Markets Inc (HOOD.O) $30 million for alleged violations of anti-money-laundering, cybersecurity and consumer protection rules. The New York State Department of Financial Services (NYDFS) said on Tuesday that Robinhood Crypto did not devote sufficient resources to address compliance and cybersecurity risks.
/jlne.ws/3d2mfom

Solana wallets ‘drained’ in blow to crypto network; Exploit marks a setback for blockchain as thousands of accounts hit
Scott Chipolina – FT
Thousands of crypto accounts linked to the Solana blockchain have been “drained” in a blow to one of the biggest networks in the digital asset market. Solana and several other platforms linked to the blockchain were on Wednesday morning investigating an exploitation of its system loophole that affected at least 7,767 digital wallets, the computer programs that store traders’ crypto tokens, according to one of Solana’s Twitter accounts.
/jlne.ws/3A3euYp

***** Here is the WSJ version of this story.

Crypto Takes a New Hit as Thousands of Solana Wallets Hacked; Security firms scramble to assess value of assets stolen; Solana’s SOL token fell 7.3% to its lowest price in a week
Joanna Ossinger and Sidhartha Shukla – Bloomberg
Hackers targeted the Solana ecosystem early Wednesday with thousands of wallets affected in the latest hit to the cryptocurrency market after bridge protocol Nomad was attacked at the start of the week. Estimates of the damage vary. Just over $5.2 million in cryptoassets have been stolen so far from more than 7,900 Solana wallets, according to blockchain forensics firm Elliptic. Security company PeckShield said four Solana wallet addresses drained approximately $8 million from victims.
/jlne.ws/3JpDNGW

Germany’s Anti-Digital Law Is a Case Study in Stunting Progress; Europe’s largest economy has the physical infrastructure it needs for the digital era. What about the mental sort?
Andreas Kluth – Bloomberg
If you want to know why Europe’s largest economy is a digital laggard — indeed, if you want to know why progress is difficult anywhere — regale yourself with a trip into the fine print of a new German law governing employment contracts. Spoiler: The problem isn’t hardware, it’s software — the human kind.
/jlne.ws/3BHnu6u

German gas shortage risks ‘unforeseeable consequences’, says Commerzbank; Lender warns of ‘severe recession’ if Russia cuts off supplies
Olaf Storbeck – FT
A serious shortage of natural gas supplies could trigger “a chain reaction with unforeseeable consequences” for the German economy, said Commerzbank, one of the country’s biggest corporate lenders.
/jlne.ws/3QjmD03

France to Curb Nuclear Output as Europe’s Energy Crisis Worsens; High river temperatures restrict EDF’s ability to cool plants; Temperatures to reach 36 degrees Celsius in Paris on Wednesday
Lars Paulsson – Bloomberg
Electricite de France SA said it’s likely to extend cuts to nuclear generation as scorching weather pushes up river temperatures, bringing the energy crisis in the European Union’s second-largest economy into sharp focus. Europe’s biggest producer of atomic energy, usually a net exporter of power for most of the year, is importing now. The nuclear issues are not just a problem for France but for countries such as neighboring Germany, which may have to burn more gas to keep the lights instead of preserving the fuel in storage for winter.
/jlne.ws/3JqjA3I

Tradeweb Reports Trading Volume of $22.0 Trillion in July with 12.0% YoY Increase in Average Daily Volume
Tradeweb Markets Inc.
Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today reported total trading volume for July 2022 of $22.0 trillion (tn). Average daily volume (ADV) for the month was $1.09tn, an increase of 12.0 percent (%) year-over-year (YoY).
/jlne.ws/3PSqfWS

UAE Exchange Firm Al Ansari Considers Dubai IPO
Julia Fioretti and Archana Narayanan – Bloomberg
Al Ansari Exchange is considering an initial public offering early next year, according to people familiar with the matter, in a sign that companies are pushing ahead with plans to go public despite a recent dip in investor appetite. The UAE-based money-exchange firm held initial talks with potential advisers about the Dubai listing that may happen in the first quarter of 2023, the people said, asking not to be identified as the information isn’t public. Details are preliminary and may change, they said.
/jlne.ws/3JspRvU

Gas Prices Have Fallen for 49 Straight Days, Approach $4 a Gallon; The cost of fuel in the U.S. is easing after hitting record highs in June
Joseph De Avila and Lauryn Azu – Bloomberg
U.S. gas prices have fallen for seven straight weeks and are approaching an average price of $4 a gallon, easing the pain of record-high fuel costs amid shrinking global demand for oil. The average cost of a gallon of regular unleaded gasoline sank to $4.19 Tuesday, the 49th straight day that prices have declined, according to OPIS, an energy-data and analytics provider. That is a 17% decline from the previous high of $5.02 a gallon set back on June 14, according to OPIS.
/jlne.ws/3SkS6AL

CME Clearing expands collateral to include short-term US Treasury ETFs; The addition will provide clearing members and their clients with greater flexibility and increased efficiency in managing collateral costs.
Chris Lemmon – The Trade
Derivatives marketplace CME Group has expanded the collateral CME Clearing accepts to include short-term US Treasury ETFs. The addition will provide clearing members and their clients with greater flexibility and increased efficiency in managing collateral costs. CME notes that ETFs pay a dividend, which is more operationally efficient and mitigates the needs for clients to re-invest maturity proceeds for individual US Treasury securities.
/jlne.ws/3JvqpB5

Rosenblatt Securities’ European market structure expert departs for new role at Optiver; Former TRADE reporter and market structure expert has spent the last eight years at Rosenblatt.
Annabel Smith – The Trade
Electronic market maker Optiver has appointed a former Rosenblatt Securities market structure specialist to join its European corporate strategy team. Anish Puaar joins Optiver in a corporate strategy role after most recently serving as Rosenblatt’s head of European market structure for the last seven months. Prior to this he spent just over seven years as a market structure analyst.
/jlne.ws/3oONRjh

Nasty family drama with Bank of America board member exposes tax risk of gifts
Lynnley Browning – Financial Planning
Loaning money to family members is rife with perils, both for the giver and for the receiver. Sibling squabbles can spark either side to regard the transaction as unfair. If a family member falls on hard times, the lender might not get paid back. And the IRS can take a dim view of things if it suspects the deal is a disguised present intended to evade taxes.
/jlne.ws/3QhwuTX

Nodes From Underground; A taking of the cultural pulse of the crypto community from artists to comedians to meet ups and beyond.
Ahmed A. Mansour – Decential
Inside a bedroom in a remote villa on the outskirts of Dubai, members of the band Callous Minds gathered for their recording session. Nothing in the tiny room suggested they played hardcore metal. They sat on a bed that occupied most of the room, waiting for their turn to perform.
/jlne.ws/3BHvt3t

Ukraine Invasion

Scholz Blames Russia for Nord Stream Gas Turbine Debacle; Siemens Energy ready to ship part for key Gazprom pipeline; Turbine spat underscores tensions over looming gas shortage
William Wilkes and Michael Nienaber – Bloomberg
German Chancellor Olaf Scholz said Russia is to blame for a delay in shipping a turbine for the key Nord Stream 1 gas pipeline, and signaled extending the life of Germany’s three remaining nuclear power plants remains a potential option to help ease an energy crunch.
/jlne.ws/3BDZFwg

Axa discloses EUR300mn in costs from Ukraine war; French insurer’s results exceed expectations elsewhere as it announces a further EUR1bn of share buybacks
Sarah White and Ian Smith – FT
Grounded planes and damaged buildings from Russia’s invasion of Ukraine have cost Axa EUR300mn pre-tax, among the largest estimated bills from the conflict reported by an insurer so far.
/jlne.ws/3PYre7Q

Ukraine Braces for Brutal Fight for Occupied Southern Regions as Referendum Looms; Armed with Western weapons, Ukraine prepares to retake Kherson region in the south
Yaroslav Trofimov – WSJ
When Ukrainian troops deployed in Kyselivka on the Kherson front line in April, the village’s empty homes provided some protection from relentless Russian shelling. “Now, there aren’t many places left to hide here anymore,” said a soldier who goes by his call sign Kulak, pointing to a landscape of craters and twisted trees. “Most houses have burned down from incendiary shells, and the church is gone, too. It is never quiet down here.”
/jlne.ws/3d3dEkZ

Exchanges, OTC and Clearing

Trading Technologies successfully launches day-one connectivity to new joint initiative between SGX Group and National Stock Exchange of India for international Nifty equity derivatives trading
Trading Technologies
Major global banks and other TT clients gained immediate access when trading began through NSE IFSC-SGX Connect on July 29
Trading Technologies International, Inc. (TT), a global provider of high-performance professional trading software, infrastructure and data solutions, announced today that the firm successfully began offering clients access to the popular Nifty equity derivatives through NSE IFSC-SGX Connect (the Connect), a new joint initiative between Singapore Exchange (SGX Group) and National Stock Exchange of India (NSE) launched on Friday, July 29. The Connect – a collaboration in trading of India’s stock index-based products – is a prominent achievement for India’s first International Financial Services Centre (IFSC) known as GIFT (Gujarat International Finance Tec) City in Gandhinagar.
/jlne.ws/3SmAdl1

Bulgarian Stock Exchange : powers Sustainability Index with Refinitiv ESG metrics
BSX
The Bulgarian Stock Exchange (BSE) announced today it has adopted Refinitiv’s Environment, Social and Governance (ESG) metrics to power its sustainability index set to be launched end of 2022. Refinitiv, a London Stock Exchange Group business, will manage and provide data on the sustainable performance of BSE listed companies. Refinitiv’s ESG metrics will qualify the constituents of BSE’s ESG Index and maintain BSE’s planned sustainability index.
/bit.ly/3oSnTLI

Intercontinental Exchange Reports July 2022 Statistics
ICE
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology and market infrastructure, today reported July 2022 trading volume and related revenue statistics, which can be viewed on the company’s investor relations website at https://ir.theice.com/ir-resources/supplemental-information in the Monthly Statistics Tracking spreadsheet.
/bit.ly/3cZrO6Q

Nasdaq July 2022 Volumes
Nasdaq
Nasdaq (Nasdaq: NDAQ) today reported monthly volumes for July 2022 on its investor relations website. A data sheet showing the monthly volumes and quarterly capture rates can be found at: http://ir.nasdaq.com/financials/volume-statistics. About Nasdaq; Nasdaq (Nasdaq: NDAQ) is a global technology company serving the capital markets and other industries.
/bit.ly/3zu4BkL

American Financial Exchange® July 2022 Volume Surges, Reporting Highest Monthly Volume Since 2020;Average Daily Volume Up 120% From July 2021 And 78% From First Half Of 2022 Reaching Pre-Pandemic Levels
AFX
The American Financial Exchange (AFX), an electronic exchange for direct lending and borrowing for American banks and financial institutions, announced July 2022 average daily volume (ADV) at $2.10 billion, nearing records set during the early days of the pandemic, when the April 2020 ADV reached $2.53 billion and the March 2020 ADV stood at $2.42 billion. Remarkably, July 2022 ADV rose 120 percent from July 2021 ADV level.
/bit.ly/3JpHook

July 2022 figures at Eurex; Interest rate derivatives showing strongest growth among listed derivatives (up 31 percent); Total Repo volumes increasing by 57 percent y-o-y; Notional outstanding in long-dated OTC interest rate swaps up 28 percent
Deutsche Börse
Total traded derivatives contracts at Eurex grew by 16 percent in July, from 110.4 million to 128.3 million compared to the same month last year. Interest rate derivatives showed the strongest year-on-year growth, up 31 percent from 38.5 million traded contracts to 50.4 million, while index derivatives grew by 14 percent, from 53.9 million traded contracts to 61.4 million. Total contracts traded in equity derivatives fell by 8 percent to 16.4 million.
/bit.ly/3OWKWQn

Moscow Exchange summed up trading results in July 2022
MOEX
The total volume of trading on the markets of the Moscow Exchange in July 2022 increased by 3% and amounted to 75.7 trillion rubles (73.5 trillion rubles in June 2022). Here and below, the dynamics are shown compared to the previous month of 2022. The best dynamics in the volume of transactions was demonstrated by the derivatives market (growth by 20.7%), the precious metals market (growth by 17.0%), the bond market (growth by 16.6%), the currency spot market (growth by 10.4% ) and the money market (growth by 3.8%).
/bit.ly/3OXhF86

Chess Replacement Project – Delay To Project Schedule; Asx To Commission Independent Review Of New Chess Application Software
ASX
ASX is today providing a CHESS replacement project update to CHESS users, software providers and other stakeholders.
This follows our updates on 28 March and 11 May 2022, where we advised that there had been delays to the expected delivery schedule of the CHESS application software.
/bit.ly/3sGw54D

Slight increase in producer sentiment despite rising costs and lower crop prices
CME Group
The Purdue University/CME Group Ag Economy Barometer farmer sentiment index rose 6 points in July to a reading of 103. Producers were somewhat more optimistic about both current and future economic conditions on their farms when compared to June. The Index of Current Conditions rose 10 points to a reading of 109 and the Index of Future Expectations rose 4 points to a reading of 100. Although all three indices rose this month, they were still 23-24% lower than a year earlier. The Ag Economy Barometer is calculated each month from 400 U.S. agricultural producers’ responses to a telephone survey. This month’s survey was conducted between July 11-15.
/bit.ly/3PVIRFx

CME Clearing Expands Collateral Policy to Accept Short-Term U.S. Treasury ETFs
CME Group
CME Group, the world’s leading derivatives marketplace, today announced that CME Clearing has further expanded the collateral it accepts and now will permit clearing members to deposit Short-Term U.S. Treasury Exchange Traded Funds (ETFs) to meet initial margin requirements.
/bit.ly/3OPob0A

Treasury Spot Month Position Limits in the September 2022
CME Group
The applicable position limits for CBOT Treasury futures are set forth in the Position Limit, Position Accountability and Reportable Level Table in the Interpretations & Special Notices Section of Chapter 5.
/bit.ly/3Qb1zIM

August 2022 Eligible Corporate Bonds, ETFs, and Stocks
CME Group
CME Clearing accepts corporate bonds, ETFs and stocks for Base and IRS performance bond requirements. The August 2022 acceptable CUSIPs are now available via CME DataMine. Please refer to CME’s website for further details regarding acceptable collateral criteria, haircuts, and limits. CME Clearing utilizes The Depository Trust Company (“DTC”) as the custodian for the ETF and stock programs, as well as the corporate bond direct program. In order to participate in these programs, clearing members must either utilize a custodian bank or have an account with DTC.
/bit.ly/3zvSYde

Suspension of CCASS Services on 20 Aug, 27 Aug, 3 Sep and 17 Sep 2022
HKEX
To facilitate upcoming drill and upgrade activities, CCASS online services will be suspended on the following Saturdays: 20 Aug 2022; 27 Aug 2022; 3 Sep 2022; 17 Sep 2022. CCASS Production Reports for the above Saturdays will be available on the corresponding following Mondays. Participants should inform its relevant IT support or BOS vendors about this arrangement for necessary preparation.
/bit.ly/3zRqagE

How Listed Companies Have Addressed Japan’s Corporate Governance Code (after AGM held in June 2022)
JPX
Tokyo Stock Exchange, Inc. has published “How Listed Companies Have Addressed Japan’s Corporate Governance Code (after AGM held in June 2022)”, based on corporate governance reports submitted by listed companies by July 14, 2022.
/bit.ly/3cRyRyi

DTCC’s Margin Transit Utility (MTU) Is Now Connected To All Major Triparty Agents, Transforming Collateral Management Processes For The Industry
DTCC
With this milestone, the MTU Triparty Messaging Service provides dealers and buy-side firms a single interface to seamlessly connect with triparty agents, eliminating multiple connectivity builds; This connectivity also assists firms in complying with upcoming regulations including UMR Phase 6.The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced its Margin Transit Utility (MTU) has achieved connectivity with major triparty agents in the financial industry including Bank of New York (BNY) Mellon, BNP Paribas Securities Services, Clearstream, Euroclear, JP Morgan, SIX and State Street.
/jlne.ws/3oOh5yX

Moscow Exchange starts trading in the first exchange-traded money market fund in foreign currency
MOEX
On August 3, 2022, trading in shares of the exchange-traded mutual investment fund (BPIF) “Raiffeisen – Foreign Exchange Money Market Fund” managed by Raiffeisen Capital Management Company began on the Moscow Exchange. Trade code – RUMM. https://bit.ly/3oOJxR5

Moscow Exchange starts trading bonds with settlements in Chinese yuan
MOEX
On August 3, 2022, trading in bonds with settlements in Chinese yuan began on the Moscow Exchange bond market. The new instruments are aimed at the widest range of investors who use the Chinese currency and financial products denominated in it in their portfolios and are designed to significantly expand the opportunities for professional market participants and their clients.
/bit.ly/3PWvjtv

IIS turnover on the Moscow Exchange has exceeded 1 trillion rubles since the beginning of the year
MOEX
The number of individuals with brokerage accounts on the Moscow Exchange in July 2022 exceeded 20.8 million (+385.9 thousand in July), they opened 34.8 million accounts. In July 2022, more than 1.9 million people made transactions on the stock market.
/bit.ly/3zqnBRj

Amendments To Article 12.5 Of Bourse De Montreal Inc. To Modify The Minimum Price Fluctuation And The Last Trading Day Of The Three-Month Canadian Bankers’ Acceptance Futures (BAX)
TMX
On July 11, 2022, the Rules and Policies Committee of Bourse de Montréal Inc. (the “Bourse”) and the Special Committee of the Regulatory Division of the Bourse approved amendments to the to the minimum price fluctuation (tick size) of the contract specifications for the Three-Month Canadian Bankers’ Acceptance Futures (BAX).
/bit.ly/3OZysHs

NSE Indices launches three new sector indices
NSE
NSE’s index services subsidiary, NSE Indices Limited today launched three new sector indices namely, Nifty MidSmall Financial Services index, Nifty MidSmall Healthcare index and Nifty MidSmall IT & Telecom index.
/bit.ly/3BDPJDe

GOH Address by Prof Tan Cheng Han, Chairman, Singapore Exchange Regulation, at the Singapore Governance and Transparency Forum on “Why we need Corporate Governance and Transparency”
SGX
Mr Max Loh, Prof Lawrence Loh, Ms Wong Su-Yen, Friends and Colleagues, Good morning to all of you. I have to say it is a real pleasure, and a great privilege, to be invited once again by the Singapore Institute of Directors, CPA Australia and NUS Business School’s Centre for Governance and Sustainability to give some remarks at this year’s Singapore Governance & Transparency Forum. https://bit.ly/3vCc28h

Fintech

Robinhood Veterans’ Fintech Parafin Raises $60 Million in Funding Round
Shubham Saharan – Bloomberg
Parafin, a financial-technology startup run by former Robinhood Markets Inc. staffers, raised $60 million in its second funding round.
GIC Pte, Singapore’s sovereign wealth fund, led the fundraising, Parafin said in a statement. GIC joined existing investors including Thrive and Ribbit Capital to value the company at $520 million, and bring its total equity funding to $94 million.
/jlne.ws/3cWH7gx

Fintech Views: Bubbles Are Not The Problem—It’s What Side You’re On That Matters
Karim Nurani – Forbes
The early-stage investing world loves buzzwords. One of the most popular today—perhaps the most popular—is fintech. The fact that fintech has grown in popularity while taking on behemoth institutions with deep pockets—many actually influence the money supply—has some wondering whether it’s in a bubble. There’s little evidence to justify the proposition, and it’s not the question you should be asking anyway. What matters is which side of the bubble you’re on.
/jlne.ws/3OWQElh

How Fintech Companies Can Benefit From Global Expansion
Wei Hsu – Entrepreneur
Fintech was one of the industries that, as a whole, not only survived but gained from the Covid-19 pandemic. Buoyed by the world increasingly moving online, Fintech firms have managed to address new technological and economic challenges.
What’s more, the growth wasn’t limited to national borders. It expanded globally in a volatile economic climate and reaped rich dividends by solving complex problems with unique solutions. Such global expansion offers a variety of benefits, but it’s not without challenges of its own. Fintech firms can navigate these challenges with the help of uniquely-tailored partnerships to capture new markets and contribute to building the next generation of digital finance solutions.
/jlne.ws/3zwV38C

Fintech is Set to Take on the ESG Challenge
Anton Kaidorin – Nasdaq
Fintech innovation is poised to deliver another societal breakthrough as it helps money managers and investors unlock the complexities of ESG investment obligations, following its success in liberating many of the global unbanked through mobile payments and inclusive finance programs.
Just as mobile money, then e-money and open banking, transformed economic activity in developing economies by empowering new micro-businesses in the late 1990’s and early 2000’s, the deployment of more sophisticated data management and analytics is now set to deliver the benefits and opportunities that sustainable investing have long promised.
/jlne.ws/3vxx9ss

Cybersecurity

UK regulator makes U-turn on Avast-Norton cyber security deal; Avast shares rise more than 40% after CMA provisionally agrees $8bn merger with US rival
Kate Beioley – FT
Shares in UK-listed cyber security group Avast jumped more than 40 per cent after the competition regulator made a U-turn and announced that it would clear an $8bn merger with US software company NortonLifeLock.
/jlne.ws/3bvxoxh

The Cybersecurity Skills Gap From A Former Hacker’s POV: The Need For Speed
Bojan Šimic – Forbes
Despite many industries being affected by skills gaps, the shortage within the IT/cybersecurity sector is nearly unmatched. In fact, “over an eight-year period, the number of unfilled cybersecurity jobs grew by 350 percent, from one million positions in 2013 to 3.5 million in 2021.” And experts predict that number won’t budge between now and 2025.
/jlne.ws/3BA4kQ0

NSF Invests $25.4M into Cybersecurity and Privacy Research Projects
Kirsten Errick – Nextgov
The National Science Foundation announced Monday that it is investing $25.4 million to advance research and scale projects related to cybersecurity and privacy as part of its Secure and Trustworthy Cyberspace program.
“The Secure and Trustworthy Cyberspace program is one of NSF’s largest research programs, recognizing the criticality of cybersecurity and privacy to the nation’s economy and to citizens,” NSF director Sethuraman Panchanathan said. “These investments support cybersecurity research across the country that can be translated into solutions that improve our quality of life.”
/jlne.ws/3oOKWHl

Africa’s Chaotic Legal And Regulatory Cybersecurity Landscape Requires Harmonization
Robinson Sibe – Forbes
There are more than 600 million total internet users in Africa. This is more than the total number of internet users in North America, South America and the Middle East. The last two decades have witnessed increased technology adoption in Africa. While this has obviously increased the efficiency of Africa’s workforce, it has also come with associated risks—one of which is the risk of cyberattacks. Although this risk is global and not exclusive to Africa, Africa’s preparation and response have not been coordinated as one would wish for.
/jlne.ws/3d2FrlV

What Is the Current Ransomware Landscape? [Video & Infographic]
Travelers
Ransomware is the fastest growing malware threat, targeting users of all types — from the home user to the corporate network. It can lead to temporary or permanent loss of sensitive or proprietary information, disruption to regular operations, financial losses incurred to restore systems and files, and potential harm to an organization’s reputation.
/jlne.ws/3vB6cE6

Cryptocurrencies

Coinbase Conundrums: Regulation, Insider Trading and the SEC; A host of headwinds around regulation and enforcement confront the troubled crypto exchange, making its future somewhat murky.
Victoria Vergolina – Bloomberg
It’s safe to say that Coinbase has had a rough couple of months. The threat of federal regulation of some of its tokens has been looming for more than a year, but it’s really started heating up over the last few months. In late July, things got even worse. A former Coinbase product manager, his brother, and a friend were arrested by federal prosecutors on an insider-trading allegation. And the cherry on top? The fact that the Securities and Exchange Commission alleges Coinbase has been running an illegal securities exchange. To help us understand what’s at stake for Coinbase, and for all digita-currency users, Bloomberg Businessweek Columnist & tech reporter Max Chafkin joins this episode.
/jlne.ws/3Qjh3uD

Early Investor In Defunct Luna Token Plans to Raise Another Fund; Hashed lost some $3 billion worth of Luna tokens in crash; Investor Kim plans to increase investment in GameFi companies
Hooyeon Kim – Bloomberg
Simon Seojoon Kim, South Korea’s most well-known cryptocurrency investor and an early backer of the ill-fated Luna token, said he hasn’t lost faith in the battered sector and plans to raise a third venture capital fund in the first half of next year. The head of VC firm Hashed is looking to step up investments in GameFi projects, which make blockchain-based video games allowing players to own assets within them, he said in an interview with Bloomberg News.
/jlne.ws/3zwICts

The rise of the ‘F@$K It’ investor; From hostile takeovers to C-suite intrigue, Behind the Money takes you inside the business and financial stories of the moment with reporting from Financial Times journalists around the world. See acast.com/privacy for privacy and opt-out information.
FT
Since the 2008 financial crisis, it’s become more and more difficult for Americans to chart a path toward financial security. Things like buying a house and paying off student loans have become more challenging for young people to do. And that’s given rise to a new generation of investors the FT’s Madison Darbyshire calls “generation moonshot.”
/jlne.ws/3BE73I0

NFT counterfeit detector MarqVision raises $20 million in Series A funding
by MK Manoylov – The Bloc
MarqVision, a startup that detects and removes counterfeit products using AI, announced Tuesday that it raised $20 million in Series A funding. Investors in this round include DST Global Partners, Atinum Investments, Softbank Ventures, Bass Investment and Y-Combinator, according to a release sent to The Block.
/jlne.ws/3ztG6Ev

Politics

Senate Plan Would Put Bitcoin, Ether Under Commodity Regulator’s Watch; Regulators vie for authority over cryptocurrency markets
Paul Kiernan – WSJ
Leaders of a Senate committee are set to propose legislation that would assign oversight of the two largest cryptocurrencies, bitcoin and ether, to the federal agency that regulates milk futures and interest-rate swaps. Senate Agriculture Committee Chairwoman Debbie Stabenow (D., Mich.) and top-ranking Republican John Boozman of Arkansas, are planning to introduce a bill Wednesday that would empower the Commodity Futures Trading Commission to regulate spot markets for digital commodities, a newly created asset class. Currently the CFTC has authority to police derivatives, such as futures and swaps, rather than underlying commodities.
/jlne.ws/3zTZ6NL

Italy parliament approves competition bill to unlock European funds
Reuters
The Italian parliament has given its final approval to a highly contested bill to promote competition in product and services markets, required to help secure a new tranche worth 19 billion euros ($19.4 billion) of post-pandemic European funds. The reform championed by the outgoing government of Prime Minister Mario Draghi has triggered protests from lobby groups, especially taxi drivers who were against opening up their sector to broader competition including from multinationals.
/jlne.ws/3SA7rh5

Regulation

Robinhood Crypto Unit Fined $30 Million by New York Regulator
Annie Massa – Bloomberg
Robinhood Markets Inc.’s cryptocurrency arm was fined $30 million by New York’s financial regulator after the brokerage was accused of violating anti-money-laundering and cybersecurity rules. The unit must enlist an independent consultant to monitor compliance, according to an order filed Tuesday. The firm disclosed last year that it expected to pay the penalty.
/jlne.ws/3zThvdD

Stop complaining about audit fines and improve your work, UK regulator tells firms; Comments by FRC’s Sir Jon Thompson come after complaints that clampdown by watchdog was putting off new recruits
Michael O’Dwyer – FT
Accountants should stop complaining about extra scrutiny and fines for audit failures and improve the quality of their work, said the head of the sector’s UK watchdog, which imposed record financial sanctions on the industry last year.
/jlne.ws/3cVOSTT

Commissioner Goldsmith Romero to Participate in a Fireside Chat at the Federal Reserve Bank of Philadelphia’s Sixth Annual Fintech Conference
CFTC
/jlne.ws/3JpkcH0

Commissioner Pham to Participate on a Panel at the Bloomberg Asia Wealth Summit
CFTC
/jlne.ws/3vAcjsk

CFTC Customer Advisory Highlights What Customers Should Know Before Trading Over-the-Counter Forex
Fraudsters posing as OTC forex dealers take deposits, but refuse withdrawals
CFTC
The Commodity Futures Trading Commission today issued a customer advisory warning the public to thoroughly research potential investments in over-the-counter foreign exchange (OTC forex). The new advisory, Eight Things You Should Know Before Trading Forex, provides potential investors with eight cautionary tips about the risks of trading OTC forex. To help protect themselves against fraud, the advisory encourages potential investors to thoroughly research an OTC forex dealer before making any deposits or sharing personal information. It also outlines what forex dealer registration entails, and why it matters, as well as common signs of fraudulent OTC forex websites.
/jlne.ws/3p9KWC9

Prepared Remarks Before the Small Business Capital Formation Advisory Committee
Chair Gary Gensler – SEC
My thanks to Carla and all the committee members. As is customary, I’d like to note that my views are my own, and I am not speaking on behalf of the Commission or SEC staff.
It’s good to be with you today. It also is good to be with my two newest colleagues on the Commission, Commissioner Mark Uyeda and Commissioner Jaime Lizárraga.
Last week, Jaime and Mark introduced themselves to the SEC staff. I was pleased for the opportunity to learn more, alongside the staff, about both Commissioners’ professional achievements as well as their rich personal stories. Jaime and Mark each come from families that started their own small businesses. I look forward to their insight on the Commission, including as relates to the important work this Committee performs. I hope you will join me in welcoming them.
/jlne.ws/3d2yeSS

SEC Appoints Anthony C. Thompson to Second Term on PCAOB
SEC
The Securities and Exchange Commission today announced the appointment of Anthony (Tony) C. Thompson to a second term as a Board Member of the Public Company Accounting Oversight Board (PCAOB). Mr. Thompson joined the Board on January 3, 2022, filling a term that expires on October 24, 2022. His second term will run until October 24, 2027.
“I am pleased that Tony will serve a second term on the PCAOB Board,” said SEC Chair Gary Gensler. “The public will continue to benefit from Tony’s dedication and broad expertise. I am confident that he will help the PCAOB build and sustain trust in the financial information that public companies disclose to investors.”
/jlne.ws/3zs6A9e

SEC Charges Convertible Note Dealer and its Long Island-Based Owners for Failure to Register
SEC
The Securities and Exchange Commission today announced settled charges against a convertible note dealer, Crown Bridge Partners, LLC, and its managing members, Soheil and Sepas Ahdoot of Great Neck, N.Y., for failing to register with the SEC as securities dealers. As part of the settlement, the Ahdoots and Crown Bridge agreed to pay more than $9 million in monetary relief and to surrender or cancel securities of 82 different issuers they allegedly obtained from their unregistered dealer activity.
/jlne.ws/3BFcTsO

Statement on Jury’s Verdict in Trial of Christopher Nohl, Michael Hull, and Entities They Owned or Controlled
SEC
After a 7-day trial, a jury in the United States District Court for the Western District of Wisconsin found Christopher Nohl, Michael Hull, and various entities under their control liable for securities fraud in connection with their operation of the Greenpoint Tactical Income Fund, a Wisconsin-based private investment fund.
/jlne.ws/3vAW26F

Remarks at the Small Business Capital Formation Advisory Committee Meeting: Shining a Spotlight (or Searchlight) on Secondary Market Liquidity for Small Businesses
Commissioner Hester M. Peirce – SEC
Good morning. Thank you to our committee members for convening and to our panelists for joining today’s meeting. [1] I am pleased that the discussion will cover a critically important topic for small businesses and the many Americans who would like to invest in them: secondary market liquidity.
Pursuant to mandates under the now-decade-old JOBS Act, the Commission developed rules to broaden the ability for smaller companies to sell their shares directly to retail investors. Regulation Crowdfunding and Regulation A+ have allowed individuals to invest in companies at a much earlier stage of growth than typically is possible through a traditional IPO.
/jlne.ws/3zvXCaW

Remarks at the Small Business Advisory Committee Meeting
Commissioner Jaime Lizárraga – SEC
Good morning, and thank you to Carla and the rest of the Committee for your time and input today. It is a pleasure to address an SEC advisory committee for the first time and on a topic as profoundly important as small business capital formation.
In preparing for today’s event, I revisited the legislative history of the statute that established the SEC’s Office of the Advocate for Small Business Capital Formation (OASB) and its advisory committee. What stood out to me is how smoothly the legislation moved – by voice vote in the House, and by unanimous consent in the Senate. With no amendments.
/jlne.ws/3BHzrZU

Remarks to the Small Business Capital Formation Advisory Committee
Commissioner Mark T. Uyeda – SEC
Thank you, Carla [Garrett]. Good morning and welcome to each of you.[1] It is a pleasure to participate for the first time with the Committee as a Commissioner. But as a longtime SEC staff member, it is great to see some familiar faces today, some going back to the earlier Advisory Committee on Small and Emerging Companies. I also see some new faces and I look forward to working with you.
During my confirmation hearing, I described working with my grandfather on his small produce delivery route in Southern California.[2] I saw firsthand the challenges and obstacles associated with operating a small business, including the need to raise capital. This experience impacts the prism through which I look at small businesses. Small business owners work to grow and prosper every day and they require a stable and predictable regulatory framework for capital formation.
/jlne.ws/3BAcpUV

SEC Charges Convertible Note Dealer and Its Long Island-Based Owners for Failure to Register
SEC
The Securities and Exchange Commission today announced settled charges against a convertible note dealer, Crown Bridge Partners, LLC, and its managing members, Soheil and Sepas Ahdoot of Great Neck, N.Y., for failing to register with the SEC as securities dealers. As part of the settlement, the Ahdoots and Crown Bridge agreed to pay more than $9 million in monetary relief and to surrender or cancel securities of 82 different issuers they allegedly obtained from their unregistered dealer activity.
/jlne.ws/3OXw4Bd

SEC Charges Convertible Note Dealer and Its Long Island-Based Owners for Failure to Register
SEC
The Securities and Exchange Commission today announced settled charges against a convertible note dealer, Crown Bridge Partners, LLC, and its managing members, Soheil and Sepas Ahdoot of Great Neck, N.Y., for failing to register with the SEC as securities dealers. As part of the settlement, the Ahdoots and Crown Bridge agreed to pay more than $9 million in monetary relief and to surrender or cancel securities of 82 different issuers they allegedly obtained from their unregistered dealer activity.
/jlne.ws/3OXw4Bd

FCA confirms new rules to improve oversight of Appointed Representatives
FCA
ARs are not authorised by the FCA – they can offer certain financial services or products under the responsibility of authorised firms (known as principals). Principal firms are responsible for ensuring their ARs comply with our rules. While some principals do this effectively, many do not adequately oversee the activities of their ARs.
As a result, the rules will help prevent consumers being mis-sold or mis-led by ARs and will prevent misconduct by ARs undermining markets operating fairly and safely.
/jlne.ws/3Qi38oA

ASIC publishes updated Financial Services and Credit Panel regulatory guidance and new ‘your rights’ infosheet
ASIC – Australian Securities and Investments Commission
ASIC has today released new guidance about the Financial Services and Credit Panel (FSCP), including an update to Regulatory Guide 263 Financial Services and Credit Panel (RG 263) and the new Information Sheet 273 FSCP decisions: Your rights (INFO 273).
RG 263 provides an overview of the purposes and composition of the FSCP, an outline of the actions a sitting panel may take, as well as the FSCP’s processes and procedures around hearings, decisions and confidentiality. Our update of RG 263 takes into account submissions received in response to Consultation Paper 359 Update to RG 263 Financial Services and Credit Panel (CP 359).
/jlne.ws/3bvTvUA

Investing and Trading

Analysis: As wheat prices soar, the world’s consumers vote with their feet
Naveen Thukral and Bernadette Christina – Reuters
Global wheat consumption is headed for its biggest annual decline in decades as record inflation forces consumers and companies to use less and replace the grain with cheaper alternatives, amid growing food insecurity. Consumers may face even higher wheat prices in the second half of 2022 as importers, who until now have supplied cargoes bought several months earlier at cheaper prices, pass on the costs from when wheat prices scaled decade highs in May.
/jlne.ws/3PYETvV

Big Oil offers big returns but keeps spending tight
Ron Bousso, Shadia Nasralla and Sabrina Valle – Reuters
The West’s energy giants are set to return a record $30 billion to investors after reporting bumper profits in the second quarter of the year following a surge in energy prices. But the top five Western oil and gas companies have shied away from investing more of their combined record profits of nearly $60 billion in new production as they weigh the impact of recession and climate change on future fossil fuel demand.
/jlne.ws/3QhWGOs

Shell Hands Out 8% Salary Bonus to Employees Amid Record Profits
Serene Cheong, Laura Hurst, and Stephen Stapczynski – Bloomberg
Shell Plc has given the vast majority of its employees a bonus equivalent to 8% of their annual salary as earnings surge to historic highs. “In recognition of the contribution our people have made to Shell’s strong operational performance against a recent challenging backdrop, our Executive Committee has decided to make a Special Recognition Award of 8% of salary to all eligible staff across the world,” Shell said in an email.
/jlne.ws/3BDFWNu

The Importance of Pelosi and Taiwan on Bond Swings; Wondering about the mood shifts in the bond market over the past seven months? Some reasons are better defined than others.
John Authers – Bloomberg
A bear market in bonds has been a long time coming — it’s about four decades since the last one ended. And after the US saw inflation hit its highest levels in 40 years (since the bond bull market started), fueling bets that the Federal Reserve would embark on the most aggressive tightening campaign in a generation, it seemed that the bear market had finally started.
/jlne.ws/3Qeylsx

Obscure US-Listed China Stock Soars 520% as Retail Army Piles In; Company was the most-bought stock on Fidelity’s trading platform Tuesday
Claire Ballentine and Matt Turner – Bloomberg
Hong Kong-based financial services provider AMTD Idea Group surged as much as 520% Tuesday, triggering multiple trading halts, as small-time traders piled into the latest retail craze. The move follows a mega rally from its subsidiary AMTD Digital, which is up more than 21,000% from its mid-July initial public offering price of $7.80. At one point Tuesday, its market value rose above $400 billion, with the bulk of that coming from its Class B shares, which aren’t publicly traded. That’s bigger than Exxon Mobil Corp. and Walmart Inc., and comes from a company that reported $25 million in revenue last year.
/jlne.ws/3PUKnrf

Environmental, Social and Corporate Governance

1 big thing: We may be misjudging climate catastrophe
AXIOS
Political leaders and climate activists often say that human-caused climate change presents an existential threat to humanity, or could lead to a global catastrophe, but this is rarely defined, Andrew writes. Driving the news: A group of top climate scientists has come forward to argue that more rigorous research is urgently needed into such worst-case scenarios, which they call a “climate endgame.” In a new perspective in the Proceedings of the National Academy of Sciences, 11 researchers from around the world put forward a research agenda into the consequences of global warming that reaches the higher end of plausible scenarios, amounting to 3°C (5.4°F) or greater, by the end of the century.
/bit.ly/3d3HfLa

Column: U.S. power producers are consuming near-record volumes of gas
John Kemp – Reuters
Record U.S. electricity consumption is driving near-record combustion of gas by power generators, ensuring gas inventories remain under pressure and prices remain high. In common with other parts of the U.S. economy, growth in gas production and the electricity supply has not kept pace with growth in demand after the pandemic, creating ongoing shortages.
/jlne.ws/3zUteJ1

The Mayfair Restaurant Where Sustainability Beats Out Tequila; Native London sees squirrel ragu as a smart business move.
Conrad Quilty-Harper – Bloomberg
In the corner of a high-end department store in one of London’s wealthiest neighborhoods, a restaurant offers yesterday’s fish and bread scraps. At Native at Browns in Mayfair, the specialty is food at the cutting edge of sustainability. Along with the aged seafood starter, there’s seaweed-infused gin martinis garnished with plants from Essex beaches and, most famously, culled English grey squirrel ragù, and common wood pigeon kebab. These menu options caused an uproar when the Sun splashed a preview on page 3 under the headline “nutty idea.” Now the place, which opened in April 2021, is packed every night.
/jlne.ws/3PVnIuZ

Ever more erratic monsoons take their toll in India; Volatility has an impact on food and fuel prices, and worries bankers as well as farmers
Chloe Cornish – FT
No sooner had we procured a dehumidifier to dry out our Mumbai apartment, which was leaking and mouldering under relentless rain, than the monsoon abruptly stopped. This was unexpected. I was braced to carry an umbrella for another two months. There’s still time for the rain to return. But India’s monsoons are holding more and more surprises.
/jlne.ws/3Sn969v

Shale patch pioneer Chesapeake to ditch oil in favour of natural gas; Driller that spearheaded US fracking revolution to shift away from crude amid LNG export boom
Myles McCormick – FT
The company most associated with the dramatic ups and downs of the US shale patch is taking another gamble, planning to offload prize oil assets and double down on American natural gas. Chesapeake Energy, a pioneer of the shale revolution that went bankrupt during the coronavirus pandemic crash, said on Tuesday it planned to exit oil altogether and return to its roots as a natural gas producer, instead pinning its future on a wave of demand for US exports of the commodity.
/jlne.ws/3zQE16T

BP’s windfall problem cannot be solved with windmills; High household bills mean UK oil supermajors have a timing problem that investment pledges will not resolve
Cat Rutter Pooley – Ft
BP’s problem, like that of the other oil supermajors, is it has more money than it can justify what to do with. BP knows what it would like to do with the windfall profits being made from the Ukraine-induced rise in energy prices: return them to shareholders. It announced a 10 per cent rise in its dividend and another $3.5bn in buybacks on Tuesday. Shell did something similar last week.
/jlne.ws/3Qjncab

Global Study: More Companies Seeking Assurance on ESG Reports
INSIDE Public Accounting
The number of global companies obtaining independent assurance on their environmental, social and governance (ESG) information increased from 51% in 2019 to 58% in 2020, according to new data from the AICPA, International Federation of Accountants and Chartered Institute of Management Accountants (CIMA).
/bit.ly/3PV8B4M

Esg Commodities Platform Xpansiv Acquires Apx
Rick Steves – Finance Feeds
The acquisition of APX furthers the company’s formal expansion, which includes the acquisition of OTX Group and the opening of a London office. Global carbon and environmental commodities market infrastructure platform Xpansiv has acquired APX to empower markets to scale with liquidity and efficiency.
/bit.ly/3vDI2ZX

Institutions

JPMorgan, Bank of America invest in L’ATTITUDE Ventures’ first fund
Reuters
L’ATTITUDE Ventures on Wednesday closed its first institutional fund raising over $100 million with an anchor investment from Wall Street giant JPMorgan Chase (JPM.N) and initial investments from Trujillo Group and Bank of America (BAC.N). The fund which intends to invest in early-stage companies that are either founded or run by Latino entrepreneurs also had investments from Barclays (BARC.L), the Royal Bank of Canada (RY.TO) and Cisco, among others.
/jlne.ws/3oN6fsW

Commerzbank Mulls Higher Profitability Goal Despite Cost Overrun; ; ender raises revenue and cost outlook, keeps profit target
CEO Knof says rationing ‘inevitable’ if Russia stops gas
Steven Arons – Bloomberg
Commerzbank AG will likely raise its 2024 profitability target as lending income expands on the back of higher interest rates in Europe. The firm however also gave up its absolute cost target for that year as it faces higher energy bills and soaring wages, Chief Financial Officer Bettina Orlopp said on call with journalists on Wednesday. Earlier, the bank reported net income for the second quarter that beat expectations.
/jlne.ws/3Qi1mne

Nomura to Review Retail Costs as Business Trails Daiwa Again
Takashi Nakamichi – Bloomberg
Nomura Holdings Inc. is reviewing costs at its retail business after earnings from the brokerage’s usually profitable division trailed its smaller rival Daiwa Securities Group Inc. for a second straight quarter.
/jlne.ws/3bq8Yp9

HSBC Faces Skepticism as Pushback Against Break Up Call Starts; Some shareholders showed their support for Ping An at meeting; Spin off could put Hong Kong as financial center at risk: HSBC
Harry Wilson and Denise Wee – Bloomberg
HSBC Holdings Plc kickstarted its public fightback against Ping An Insurance Group Co.’s push to break it up this week. The early indications are that the lender has a long way to go to convince some shareholders of its strategy. Amid chaotic scenes at a shareholder meeting in Hong Kong on Tuesday at which dozens of investors were turned away, protesters held up placards in support of Ping An as HSBC executives and directors got their first chance to make their case directly to stockholders.
/jlne.ws/3JoHX1T

Nomura’s 97% Profit Drop Adds Urgency to Shift Away From Trading; Fixed income gains couldn’t make up for weakness elsewhere; CEO Kentaro Okuda has pledged to diversify income streams
Takashi Nakamichi and Takako Taniguchi – Bloomberg
Nomura Holdings Inc. barely eked out a profit as fixed-income gains couldn’t make up for weakness elsewhere, adding urgency to Chief Executive Officer Kentaro Okuda’s plans to diversify Japan’s largest brokerage. Net income for the three months ended June slid 97% to the lowest in five quarters, falling short of estimates from four analysts polled by Bloomberg.
/jlne.ws/3Spr3nE

Man Group hit by client nerves over market turbulence; Hedge fund posts weaker than expected investment inflows and rising redemptions
Laurence Fletcher – FT
Man Group, one of the world’s biggest hedge funds, has posted weaker than expected inflows and said clients have asked for more of their money back in recent months ahead of further expected market turbulence.
/jlne.ws/3btnInc

Moon Capital Management equity trading managing director departs; Departing executive had been with the investment manager for almost 10 years and previously served at Morgan Stanley, JP Morgan Chase and Lehman Brothers.
Annabel Smith – The Trade
Moon Capital Management’s managing director and partner for global equity trading, operations and portfolio management has departed for pastures new, The TRADE can reveal.
/jlne.ws/3vxvEdO

Trefoil Capital Advisers trader departs for Citi after five months; New portfolio trading sales trader at Citi also spent almost 14 years at UBS Investment Bank in portfolio sales trading and cash equities roles.
Annabel Smith – The Trade
An execution trader at Trefoil Capital Advisers has left the firm after just five months to take up a portfolio trading sales trading role at Citi, The TRADE can reveal.
/jlne.ws/3PYwOr4

Wellness Exchange

China’s Covid Zero Could Last for Years Because It Works for Xi; What if the country stays closed indefinitely to keep the virus out?
Bloomberg News
It’s 2025 in Beijing, five years since the start of the pandemic, and Chinese President Xi Jinping’s Covid Zero policy is still an inescapable part of daily life. Residents must get PCR tested every few days at one of the booths on nearly every street corner. A personalized health code app determines who can move around the capital, and where. Children have to test negative to go to the park. Something as simple as a visit to a coffee shop or supermarket can result in being locked down in your apartment, not even allowed out for food – which the state instead provides.
/jlne.ws/3OV4GDR

Regions

Why Chinese Firms Are Upgrading Their Hong Kong Listings
Filipe Pacheco – Bloomberg
When New York-listed Alibaba Group Holding Ltd. said in July it wanted to change its “secondary” listing status in Hong Kong to “primary,” it wasn’t the first and may not be the last Chinese company to do so. The process is costly and time-consuming but it could make it easier to access a vast pool of capital in the mainland. It also would keep the stock trading if a company is forced to delist in the US.
/jlne.ws/3bs51jH

Hong Kong casino tycoon considers Macau move to avoid US delisting; Melco is exploring a loophole as negotiations between Beijing and Washington reach a stalemate
Tabby Kinder – FT
Melco Resorts & Entertainment, a $2.5bn casino group run by Hong Kong casino mogul Lawrence Ho, is weighing relocating its headquarters to Macau to avoid being delisted in the US, according to two people familiar with the matter. The US Securities and Exchange Commission has said that about 200 Chinese and Hong Kong companies listed in New York will be forced to delist in 2024 if they do not comply with audit disclosure laws. Macau, a special administrative region of China, is not included in the delisting threat, opening the door to a potential loophole.
/jlne.ws/3zTYlEp

Windfall tax: Frequent changes create uncertainty for Indian oil producers; Experts say move is justified but government should clarify how proceeds will be utilised
Indivjal Dhasmana – Business Standard
The Centre on Tuesday revised the windfall tax on oil companies for the second time since its imposition a month back. The frequent revision lends uncertainty to these companies, particularly domestic producers. However, experts have backed the move given the very nature of windfall tax and the volatility of global crude prices. They said, however, that the government should bring in clarity as to how the receipts will be utilised and follow the UK’s example of providing discounted bills to low-income groups.
/jlne.ws/3JpVJkK

Waiting for Superbond; Sovereign bond contracts should be enforceable. Is that really too much to ask?
Jay Newman and Matthew D McGill – FT
In the documentary film Waiting for Superman, educator Geoffrey Canada describes his heartbreak when, as a fourth grader living in a New York ghetto, he realised that Superman wasn’t real — that no one was coming to save him. He’d have to save himself.
/jlne.ws/3oTxVwm

‘The turbine works’: Germany’s Scholz points finger at Russia in energy row
Christoph Steitz – Reuters
German Chancellor Olaf Scholz on Wednesday said Russia had no reason to hold up the return of a gas turbine for the Nord Stream 1 pipeline that had been serviced in Canada but has since been stranded in Germany in an escalating energy standoff.
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Exclusive: Germany’s gas levy cannot be implemented as planned, say sources
Markus Wacket – Reuters
The German government will have to amend its energy security law again in September as its gas levy cannot yet be imposed on all consumers, including those with fixed prices contracts, government and parliamentary sources told Reuters on Wednesday.
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OPEC+ might have to raise oil output so market doesn’t overheat, Kazakhstan says
Maha El Dahan and Ahmad Ghaddar – Reuters
OPEC+ might have to raise oil production to avoid market overheating, OPEC+ member Kazakhstan said on Wednesday, as the group of oil producers meets amid U.S. pressure to add barrels to the market while most members have already exhausted their output potential.
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Romanian Black Sea port to keep shipping Ukrainian grain, seeks EU funding
Luiza Ilie – Reuters
At the Romanian Black Sea port of Constanta dockers have worked for months to ship out Ukrainian grain in addition to their usual loads from Romania and its land-locked neighbours. Shipments arrive constantly. The grain, which is poured onto conveyor belts in Constanta terminals, makes the air smell sweet and covers workers seeking shade under the steel silos in a fine layer of golden dust.
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Danish Gas Field Delays Restart as Energy Crisis Deepens; Tyra field restart pushed back due to works, supply issues; Denmark’s gas reserves are about 85% filled, says agency
Francois De Beaupuy and Christian Wienberg – Bloomberg
Denmark’s main natural gas field will remain idled until the winter of 2023-24, adding a fresh challenge to Europe’s energy crisis as Russia curbs deliveries of the fuel. The first gas from the redeveloped Tyra field in the Danish North Sea will be delayed due to manufacturing and Covid-related supply chain disruptions, TotalEnergies SE said in a statement. The company is the largest shareholder in the consortium that owns the reservoirs.
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UK Is Already in Recession and Is Heading for Stagflation; Bleak outlook suggests turmoil for Boris Johnson’s replacement; Niesr estimates that incomes will plunge and wipe out savings
David Goodman – Bloomberg
The UK economy is already in recession as the cost of living crisis has devastating consequences for household incomes, a leading think tank has concluded. In a gloomy assessment from the National Institute of Economic and Social Research found that average real disposable incomes will fall by an unprecedented 2.5% this year and remain 7% below their pre-Covid level through 2026.
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Miscellaneous

We’re Hiring, Especially If You’re in High School and Want an Apprenticeship; Companies scrambling to fill openings are increasingly tapping students with promises of training and good wages.
Molly Smith and Nic Querolo – Bloomberg
Like most 18-year-olds, Kyler Kennard didn’t know what he wanted to do with the rest of his life. So after graduating from high school he put off college and took a job as a technician at Canon Inc., the imaging company near his home in the Dallas suburbs. Kennard had already been preparing for a career in media technology through a youth apprenticeship program at his high school. He says his job at Canon pays $20 an hour and comes with good benefits—a lot more enticing than his other options, driving for DoorDash or working in fast food.
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