The Essex Boys: How Nine Traders Hit a Gusher With Negative Oil; EU Warns No Deal Is Likeliest Outcome of Talks: Brexit Update

Dec 11, 2020

First Read

$18,761/$300,000 (6.3%)
Anthony McCormick, Rob Moore and Jennifer Nayar


Hits & Takes
John Lothian & JLN Staff

CFTC Chairman Heath Tarbert yesterday announced he is stepping down in an understated press release titled “Statement of Chairman Heath P. Tarbert Announcing His Future Plans.” However, so as not to let him leave without a flourish of that media wokeness that surrounded his tenure, the CFTC included a video set to music to make a greater statement about his leaving. It was not quite the Chris Giancarlo Keyser Söze exit pretending to be Satoshi Nakamoto, but it was fitting for Chairman Tarbert.

(Click to play video)

I want to thank Chairman Tarbert for his service and all that he accomplished. The speed with which he had the commission plow through various outstanding issues was impressive. And of course there are the record setting fines assessed during his tenure. I will have more to say on Chairman Tarbert’s tenure in a later commentary.

On Monday, the CFTC’s Technology Advisory Committee, of which I am a member, will meet under the leadership of Commissioner Brian Quintenz. This is probably the last time Quintenz will lead the meeting, as he has also announced he is leaving the CFTC. The agenda for the meeting was announced yesterday. Thank you to Commissioner Quintenz for his leadership of the TAC and his tenure at the CFTC. It has been a pleasure to work with him.

The “Trading Charity – Act and Help” campaign at the Frankfurt Stock Exchange brought in a record amount in donations as Deutsche Börse and nine trading houses donated 166,000 euros to non-profit organizations, including the banks donating 66,000 euros to Help for Children with Cancer Frankfurt eV and the Association for the Promotion of Youth Welfare and Adult Education eV (Möwe Jonathan). Deutsche Börse donated a total of 100,000 euros to the Frankfurter Tafel and Make-A-Wish Germany.

Speaking of Germany, Donald Trump was labelled ‘Loser of the Year’ by Europe’s biggest news magazine, Newsweek reported. The German magazine Der Spiegel ‘delivered a withering assessment of President Donald Trump’s 2020 in an article headlined “The loser of the year.”‘

Here is a way to keep up on FIA Japan: follow their LinkedIn page. I followed today on an invitation from FIA Japan’s Tony Crane.

We had three new donations to the JLN MarketsWiki Education GoFundMe campaign. Tony McCormick of BOX, Robert Moore of Marquette Partners and Jennifer Nayar of Vela all gave to our campaign to preserve industry history. Tony McCormick is a friend of JLN who has played many roles in the industry, including at Schwab and at BOX. He is now the head of BOX Exchange LLC, having previously served as CEO of BOX Options Markets LLC. Rob Moore is a friend of JLN, veteran trader and general partner of Marquette Partners, an international liquidity provider to exchange-traded markets. Marquette Partners has been a loyal Friend level sponsor of MarketsWiki. We interviewed Rob back in 2011 for our History of Financial Futures project that helped spawn our history preservation efforts. Jennifer Nayar is the CEO of Vela and one of the highest profile female technology leaders in the industry. Her resume features impressive stops at REDI Global Technologies, NYSE Euronext, NYFIX Inc, Omgeo, Mercator (formerly Braid), Thomson ESG, and the London Stock Exchange. Vela is also a loyal Friend level MarketsWiki sponsor.

Thank you to Tony, Rob and Jennifer and all who have given and all who have yet to give. Support our efforts to preserve industry history by donating 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


The CME Group, Inc. is hosting a virtual invitation-only seminar today, December 11, honoring Professor Susan Athey, Economics of Technology Professor at Stanford Graduate School of Business — this year’s winner of the CME Group-MSRI Prize in Innovative Quantitative Applications. More information on Athey can be found here.~SC

Today is the five-year anniversary of the American Financial Exchange (AFX), an electronic exchange that facilitates direct lending and borrowing for banks and financial institutions. AFX also calculates AMERIBOR, a market-based interest rate benchmark that serves as an alternative to Libor.~SC


Statement of Chairman Heath P. Tarbert Announcing His Future Plans
It has been a great honor to serve the American people as the 14th Chairman and Chief Executive of the CFTC as well as one of the agency’s five commissioners. Leading the men and women of the CFTC these last 17 months has been an extraordinary privilege but, like all good things, it must come to an end. Today, I am announcing that I intend to resign my position as Chairman early next year.

*****What are his future plans?~JJL


FIA thanks CFTC Chairman Heath Tarbert for his service
FIA President and CEO Walt Lukken made the following statement on the announcement today by Commodity Futures Trading Commission Chairman Heath Tarbert.

*****There is nothing like good ole Indiana manners from FIA President and CEO Walt Lukken.~JJL


Standing on the edge of the Brexit precipice; A no-deal outcome will hurt Britain more than the EU
The editorial board – FT
The Brexit clock is ticking towards midnight. Three weeks before the UK’s transition period ends, the mood in talks on a future EU trade deal is bleak. A no-deal outcome, on top of a pandemic that has taken a grim toll of lives and livelihoods, would be a failure of statecraft with grave economic consequences. The harm would be worse for Britain, given the proportion of its trade that goes to the EU, but EU members would be damaged, too. Any last chance of a deal will depend on a preparedness by both sides not just to compromise, but to understand each other better.

*****I have never been a fan of Brexit. I respect the rights of people to make decisions for themselves. Maybe they should do that again.~JJL


What will Britain be without its pubs? Publicans are facing financial ruin and being forced to dismantle, inch by inch, everything that makes us hospitable
Jo Eames – FT
Samuel Johnson defined “hospitality” as “the practice of entertaining strangers”. At a coaching inn near Chipping Norton he remarked to his friend and biographer James Boswell: “There is nothing which has yet been contrived by man, by which so much happiness is produced, as by a good tavern or inn.”

*****I can’t even imagine.~JJL


China Authorities Detain Bloomberg News Beijing Staff Member
Reto Gregori and Madeleine Lim – Bloomberg
Chinese authorities have detained Haze Fan, who works for the Bloomberg News bureau in Beijing, on suspicion of endangering national security. Fan was last in contact with one of her editors around 11:30 a.m. local time on Monday. Shortly after, she was seen being escorted from her apartment building by plain clothes security officials.

*****Not acceptable.~JJL


Trading Charity at the Frankfurt Stock Exchange brings a record amount of donations; Deutsche Börse and securities trading banks donate 166,000 euros to non-profit organizations
Deutsche Börse
Deutsche Börse and the securities trading banks (“specialists”) active on the Frankfurt trading floor have reached a record donation amount of 166,000 euros at this year’s Trading Charity. With the “Trading Charity – Act and Help” campaign, the exchange operator and the nine trading houses support a total of four non-profit organizations: The specialists donate a total of 66,000 euros to the Help for Children with Cancer Frankfurt eV and the Association for the Promotion of Youth Welfare and Adult Education eV (Möwe Jonathan ). Deutsche Börse donates a total of 100,000 euros to the Frankfurter Tafel and Make-A-Wish Germany.

*****Nice work from my friends in Germany.~JJL


Walt Disney World will digitally add masks to guests not wearing them in ride photos
Alexandra Deabler – Fox News
If you visit Walt Disney World, you’ll be wearing a mask one way or another. Disney World has allegedly updated how it handles people not wearing masks on rides, by digitally adding the facial covering to rogue guests in the photos that can be purchased afterward.

*****A true coverup.~JJL


Thursday’s Top Three
Our top story Thursday was The Trade’s US authorities urged to investigate ‘illegal’ changes to CME market data fee policies, about the data distributor Exchange Data International (EDI) asking U.S. regulators to look into CME Group’s proposed changes. Second was Bloomberg’s Citi Trial Shows Chain of Gaffes Leading to $900 Million Blunder. That is quite a chain of gaffes. Third was the SEC’s cease and desist order for ICE Data Pricing & Reference Data, LLC (“PRD”) requiring PRD to stop “committing or causing any violations and any future violations of Section 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-7 thereunder.”


CryptoMarketsWiki Coin of the Week: Paxos (PAX)
Paxos has filed an application with the Office of the Comptroller of the Currency to become a cryptocurrency custodian. If the application is accepted, the bank, which would operate out of New York, would be regulated at both the State and Federal levels.


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Lead Stories

The Essex Boys: How Nine Traders Hit a Gusher With Negative Oil; Over the course of a few hours on April 20, a guy called Cuddles and eight of his pals from the freewheeling world of London’s commodities markets rode oil’s crash to a $660 million profit.
Liam Vaughan, Kit Chellel, Benjamin Bain – Bloomberg
Among the many previously unthinkable moments of 2020, one of the strangest occurred on April 20, when the price of crude oil fell below zero. West Texas Intermediate futures, the most popular instrument used to trade the commodity, had started the day at $18 a barrel. That was already low, but prices kept tumbling until, at 2:08 p.m. New York time, they went negative.

EU Warns No Deal Is Likeliest Outcome of Talks: Brexit Update
Ian Wishart and Ania Nussbaum – Bloomberg
European Commission President Ursula von der Leyen warned that a no-deal split with the U.K. is the likeliest outcome on Dec. 31 as last-ditch talks to try to reach a deal before Sunday continue in Brussels. Prime Minister Boris Johnson’s pleas for European Union leaders to step in and salvage the faltering trade negotiations were frustrated as summit talks overran on Thursday night, pushing Brexit to the fringes. On Friday, von der Leyen spent just 10 minutes briefing government leaders on the subject.

World’s Negative-Yielding Debt Pile Hits $18 Trillion Record
Cormac Mullen and John Ainger – Bloomberg
Spanish 10-year bond yields fall below 0%, following Portugal; Increase has coincided with a broadly-weaker dollar in 2020
The world’s stockpile of negative-yielding debt has swelled to a fresh record in a sign that demand for havens is just as intense as that for riskier assets. The market value of the Bloomberg Barclays Global Negative Yielding Debt Index rose to $18.04 trillion on Thursday, the highest level ever recorded. Spanish 10-year bonds were the latest to join the club, with rates sliding below 0% for the first time Friday.

The US Treasury market is facing a train wreck; It is possible, even likely, that T-bill rates will be negative for a significant period
John Dizard – FT
The US Treasury market, supposed to be the supplier of the world’s risk-free assets, is facing a very educational 2021. As Mark Cabana, head of US rates strategy for BofA Securities, says: “There is going to be a train wreck at the front end of the [Treasury] curve next year. There is way too much cash chasing too little paper.”

JPMorgan Using Blockchain to Move Billions in Repo-Market Trades
Matthew Leising – Bloomberg
Goldman has tested the system and will join in early 2021; Repo cash now available in real time during the trading day
JPMorgan Chase & Co. is using its custom blockchain to conduct intraday repurchase agreements totaling billions of dollars, an advance that’s helped persuade Goldman Sachs Group Inc. to join the new digital market early next year.

Brexit poses threat of ‘market volatility and disruption’, BoE warns; UK central bank’s financial stability report says EU-based investors face risk to transactions
Matthew Vincent – FT
Ending the Brexit transition period without an agreement on financial services risks “volatility and disruption”, the Bank of England has warned, adding that it may have to intervene to keep markets operating smoothly as it did at the height of the pandemic in March.

SGX signs MOU with CCDC to strengthen Singapore-China bond markets
Singapore Exchange (SGX), Asia’s largest international bond marketplace, has signed a Memorandum of Understanding (MOU) with China Central Depository & Clearing Co (CCDC), a central securities depository for Chinese government bonds, in a wide-ranging agreement to strengthen and promote Singapore and China’s bond markets. This is CCDC’s first comprehensive MOU of strategic cooperation with an international exchange, that covers the full lifecycle from issuance to settlement and custody.

SIFMA Fixed Income Market Close Recommendations in the U.S., the U.K., and Japan for the Christmas Holiday
SIFMA has confirmed its previous holiday recommendations for the U.S., the U.K., and Japan in observance of the Christmas holiday.

How oil majors shift billions in profits to island tax havens
Tom Bergin, Ron Bousso – Reuters
Bermuda and the Bahamas aren’t exactly big players in the oil-and-gas world. They don’t produce any of the fuels at all. Yet the islands are deep wells of profit for European oil giant Royal Dutch Shell Plc.

Bernard Madoff victims receiving more money, 12 years after his arrest
Jonathan Stempel – Reuters
Overseers of two programs to compensate victims of Bernard Madoff’s Ponzi scheme have announced $679 million of new payouts, ahead of Friday’s 12th anniversary of the now-imprisoned swindler’s arrest.

Facebook Breakup Would Demolish Zuckerberg’s Social Media Empire
Kurt Wagner and Sarah Frier – Bloomberg
U.S. antitrust lawsuit seeks divestment of Instagram, WhatsApp; Facebook’s bets on the future are at risk if deals are unwound
The U.S. Federal Trade Commission took a major step toward the possible breakup of Facebook Inc. by formally filing an antitrust lawsuit against the technology giant, accusing it of abusing its monopoly powers in social networking to stifle competition.

Big Tech faces its Standard Oil moment; Allowing new innovative competitors to emerge is critical
The editorial board – FT
More than a century ago, US antitrust regulators ordered the break-up of Standard Oil. The company had grown into an industrial empire that produced more than 90 per cent of America’s refined oil output. Today, the US authorities have Big Tech in their sights. According to their critics, America’s large technology companies wield similar levels of power to that of Standard Oil 100 years ago. Their market power is not in oil but in data, the lifeblood of the modern economy. This week, the Federal Trade Commission and a group of 48 US attorneys-general hit Facebook with its first antitrust charges on home soil. If regulators can prove that the social media network deliberately acted in an anti-competitive way, it could lead to the company’s break-up.

In Europe, Monetary Policy Is All About Giving Banks Free Money; ECB’s stimulus is increasingly based on ‘dual interest rates’ boosting bank profits. It may not help growth much.
Jon Sindreu – WSJ
With bond yields at record lows and market liquidity running free, central banks are searching for new ways to stimulate the economy. In Europe, officials are pointing in a new direction: Let banks make more money. Investors shouldn’t be surprised if the results underwhelm.

B3 Elected For The Second Consecutive Time Global Exchange Of The Year By Global Investor Group – B3 Was Also Chosen The Stock Exchange Of The Year In 2019, Made Hitherto Unheard Of For A Latin American Stock Exchange
B3 was elected, for the second consecutive time, Global Exchange of the Year at this year’s FOW Awards, an award organized by the Futures and Options World (FOW) magazine and hosted by the Global Investor Group, the UK’s leading communications group specialized in the capital and derivatives markets.

Joint Trade Associations Letter Requesting DTO Equivalence
On December 9, ISDA and seven other trades associations (the Association for Financial Markets in Europe, the Alternative Investment Management Association, the European Banking Federation, Electronic Debt Markets Association Europe, the European Venues and Intermediaries’ Association, FIA and the asset management group of the Securities Industry and Financial Markets Association) sent a letter requesting that the European Commission recognize the equivalence of UK trading venues for the purposes of the derivatives trading obligation before the end of the Brexit transition period. Otherwise, the long-term consequences for use of market infrastructure are uncertain.


Khan Steps Up London Covid Fight to Avert ‘Catastrophic’ Tier 3
Alex Morales – Bloomberg
Mayor rolls out more testing centers, beefs up policing; Cases are on the rise in the capital with tier review looming
London Mayor Sadiq Khan beefed up the policing of Covid rules and announced more community testing in the capital in an effort to avoid having the city placed under the U.K.’s toughest virus restrictions. Some 85 new test centers will be rolled out across the capital, including 45 mobile units, Khan’s office said in a statement. They’re additional to plans announced Thursday by Health Secretary Matt Hancock to mass test secondary school pupils and their families in parts of London and the neighboring counties of Kent and Essex.

Germany Eyes Hard Lockdown After Record Covid Cases, Deaths
Daniel Schaefer and Raymond Colitt – Bloomberg
Merkel, regional leaders to meet Sunday to discuss outbreak; ‘The wave needs to be really stopped now,’ state premier says
Germany’s daily coronavirus cases and deaths rose the most since the pandemic began, increasing pressure on authorities to impose a hard lockdown over the holiday season. New coronavirus-related fatalities climbed by 604 in the 24 hours through Friday morning, while cases jumped by another 32,734, according to data from Johns Hopkins University. Both figures exceeded previous highs reached in recent weeks.

Fear of Vaccine Threatens to Delay Pandemic’s End
Michelle Fay Cortez – Bloomberg
After the first vaccines against Covid-19 demonstrated efficacy, public health officials began to foresee a gradual end to the pandemic. Getting there with a minimum of additional suffering will require using vaccines to achieve so-called herd immunity. Some health specialists warn that vaccine hesitancy — a reluctance to accept immunization — threatens to undermine that goal.

Covid vaccine setbacks for Sanofi/GSK and Australian jabs; European pharma groups delay shot rollout and Canberra abandons separate project after HIV ‘false positives’
Victor Mallet, Jamie Smyth, Donato Paolo Mancini and Sarah Neville – FT
The race for a Covid-19 vaccine was hit by twin setbacks as Sanofi and GlaxoSmithKline delayed the rollout of their jab until the end of next year and Australia abandoned a shot that produced “false positives” for HIV.

France tries caution and transparency to convince vaccine sceptics; French experience could provide a blueprint for other countries facing distrust over Covid jabs
Leila Abboud – FT
A slickly produced movie posted online last month entitled Hold-Up purported to reveal the vast conspiracy behind the Covid-19 pandemic. Among its allegations, greedy pharmaceutical companies were rushing vaccines to market by cutting corners in clinical trials.

US science panel backs Pfizer/BioNTech’s Covid-19 vaccine; FDA poised for final decision after receiving endorsement from advisory committee
Kiran Stacey and Hannah Kuchler – FT
The US took a step closer to approving the Pfizer/BioNTech Covid-19 vaccine on Thursday, after a committee of experts recommended that the Food and Drug Administration grant it an emergency authorisation.

Airlines Gear Up to Transport Vaccines That Could Revive Travel; Planes are one part of an elaborate supply chain to move billions of doses of vaccines around the world.
Niraj Chokshi – NY Times
Months before anyone knew which of the coronavirus vaccine candidates would pull ahead or when they’d be available, airlines were trying to figure out how to transport doses around the world.

No, there isn’t evidence that Pfizer’s vaccine causes infertility.
Katherine J. Wu – NY Times
On Wednesday, Erin Lilly, who works at a retirement home, became one of the first people in Cornwall, England, to receive the Pfizer Covid-19 vaccination.Credit…Hugh Hastings/Getty Images
Social media platforms were flooded this week with concerns about an alarming headline purporting that the Pfizer-BioNTech coronavirus vaccine, which is expected to be cleared for emergency use this week, could cause infertility in women. But experts say these claims are baseless.

Exchanges, OTC and Clearing

Micro E-mini Equity Options Surpass 500,000 Contracts Traded
PR Newswire
CME Group, the world’s leading and most diverse derivatives marketplace, announced that more than 500,000 options on its Micro E-mini S&P 500 and Micro E-mini Nasdaq-100 futures contracts have traded since launch on August 31. “Since the launch of these new options on our Micro E-mini S&P 500 and Micro E-mini Nasdaq-100 futures contracts, we have seen robust interest and participation from a broad range of clients and active traders,” said Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products. “Working with the broker community, we will continue to educate sophisticated active traders on the benefits of using Micro options to manage risk and take advantage of the unparalleled liquidity, margin efficiencies and round-the-clock access to our markets.”

Cboe Global Markets Announces Date of Fourth-Quarter 2020 Earnings Release and Conference Call
Cboe Global Markets, Inc.
Cboe Global Markets, Inc. (Cboe: CBOE), a market operator and global trading solutions provider, today said it will announce its financial results for the fourth quarter of 2020 before the market opens on Friday, February 5, 2021. A conference call with remarks by the company’s senior management will begin at 7:30 a.m. Central Time (CT), 8:30 a.m. Eastern Time (ET).

Euronext announces quarterly review results of the CAC® Family Indices
Euronext today announced the results of the quarterly review for CAC® Family indices. The changes due to the review will be effective from Monday 21 December 2020.

Euronext announces quarterly review results of ISEQ® Family
Euronext today announced the results of the quarterly review for the ISEQ® family of indices. The changes due to the review will be effective from Monday 21 December 2020.

Video: ETRFs & BTRFs – learn all about them
What are Equity Total Return Futures and Basket Total Return Futures? Everything you always wanted to know about these products is addressed in a new video. The video explains what ETRFs and BTRFs are, their purpose and benefits, and how to use them in
a smart way.

Volatility Trading Through The End Of The Post-Brexit Transition Period
The Brexit process continues with the next big deadline coming on December 31 when the post-Brexit transition period comes to an end. There is a lot of uncertainty as to what the end of this temporary normalcy will bring. The financial impact of moving to the next phase of Brexit will be felt most in Europe and no other index will reflect the market’s concerns or relief associated with this process than VSTOXX®. Trading VSTOXX® futures and options through the end of the post-Brexit transition period will offer up opportunities for those expecting elevated volatility to drop with a smooth transition or if the end of the transition period will bring more uncertainty and an increase in VSTOXX®.

Performance Bond Requirements: Agriculture, Energy, Equity, Interest Rate & Metal Margins – Effective December 11, 2020
CME Group
As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago Mercantile Exchange Inc., Clearing House Risk Management staff approved the performance bond requirements for the following products listed in the advisory at the link below. Please email any questions to

Performance Bond Requirements: Energy Margins – Effective December 11, 2020
CME Group
As per the normal review of market volatility to ensure adequate collateral coverage, the Chicago Mercantile Exchange Inc., Clearing House Risk Management staff approved the performance bond requirements for the following products listed in the advisory at the link below.

Variable Storage Rate (VSR) Results for Wheat and KC HRW Wheat Premium (Storage) Rates
CME Group
The Variable Storage Rate (VSR) mechanism in The Board of Trade of the City of Chicago, Inc. (“CBOT”): (1) Wheat futures contract (CME Globex Code: ZW; Clearing and CME ClearPort Code: W; Rulebook Chapter: 14); and (2) KC HRW Wheat futures contract (CME Globex Code: KE; Clearing and CME ClearPort Code: KW; Rulebook Chapter: 14H) examines nearby calendar spreads to determine adjustments in maximum contract premium (storage) rates. Below are the results of the December 2020 – March 2021 calendar spread relative to financial full carry during the period of September 21, 2020 through November 20, 2020.

Notice of Disciplinary Action
CME Group
CME RULE VIOLATION:Rule 432. General Offenses (in part)
It shall be an offense: L.1. to fail to appear before the Board, Exchange staff or any investigative or hearing committee at a duly convened hearing, scheduled staff interview or in connection with any investigation. Rule 539. Prearranged, Pre-Negotiated and Noncompetitive Trades Prohibited (in part) A. General Prohibition – No person shall prearrange or pre-negotiate any purchase or sale or noncompetitively execute any transaction….
PENALTY: Based on the record and the Panel’s findings and conclusions, the Panel ordered that Fang pay a fine of $35,000. The Panel also permanently suspended Fang from direct access to any trading floor owned or controlled by CME Group and from direct and indirect access to any designated contract market, derivatives clearing organization, or swap execution facility owned or controlled by CME Group Inc. beginning on the effective date below.

Notice of Disciplinary Action
CME Group
CME RULE VIOLATION: Rule 534. Wash Trades Prohibited
No person shall place or accept buy and sell orders in the same product and expiration month, and, for a put or call option the same strike price, where the person knows or reasonably should know that the purpose of the orders is to avoid taking a bona fide market position exposed to market risk (transactions commonly known or referred to as wash sales). Buy and sell orders for different accounts with common beneficial ownership that are entered with the intent to negate market risk or price competition shall also be deemed to violate the prohibition on wash trades. Additionally, no person shall knowingly execute or accommodate the execution of such orders by direct or indirect means.
PENALTY: Based on the record and the Panel’s findings and conclusions, the Panel ordered that Peng pay a fine of $75,000. The Panel also suspended Peng from direct access to any trading floor owned or controlled by CME Group and from direct and indirect access to any designated contract market, derivatives clearing organization, or swap execution facility owned or controlled by CME Group Inc. beginning on the effective date below and continuing for a period of two years after the fine is paid in full.

Notice of Disciplinary Action
CME Group
NON-MEMBER: Po Kang Ting
CME RULE VIOLATIONS: Rule 432 – General Offenses (in part)
It shall be an offense:
B.1 To engage, or attempt to engage, in fraud or bad faith
G. To pre-arrange the execution of transactions in Exchange products for the purpose of transferring equity between accounts.
T. To engage in dishonorable or uncommercial conduct.
PENALTY: Based on the record and the Panel’s findings and conclusions, the Panel ordered Ting to pay a fine in the amount of $200,000, and permanently suspended Ting from access to any trading floor owned or controlled by CME Group and from direct and indirect access to any designated contract market, derivatives clearing organization or swap execution facility owned or controlled by CME Group.

Notice of Disciplinary Action
CME Group
NON-MEMBER: Mateusz Swierczynski
CME RULE VIOLATIONS: Rule 575. A. Disruptive Practices Prohibited (in part)
A. No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.
PENALTY: Based on the record and the Panel’s findings and conclusions, the Panel ordered that Swierczynski pay a fine in the amount of $60,000. The Panel further suspended Swierczynski’s access to any trading floor owned or controlled by CME Group and from direct and indirect access to any designated contract market, derivatives clearing organization or swap execution facility owned or controlled by CME Group for a period of five years, beginning on the effective date and continuing for five years from the date that the ordered fine is paid in full.

CME STP Notices: December 10, 2020
CME Group
CME STP Support of BrokerTec Markets – January 18, 2021
New – New Aggressor Indicator Flag on CME STP – January 24, 2021 NEW
New – Enhancements for Exercise and Assignment Trades on CME STP – January 25, 2021 NEW
Update – BrokerTec Stream on CME STP – February 1, 2021 UPDATE
CME STP FIXML API Connectivity Documentation

CME Globex Notices: December 7, 2020
CME Group
Critical System Updates
New Resource for Critical Configuration Files
iLink 2 on MSGW Decommission – February 26, 2021
Update on Order Routing and Front-End Audit Trail Requirements for iLink 3
Update – Removal of Korea Exchange (KRX) Markets on CME Globex – December 18 UPDATE
iLink 3 SBE Schema Update – January 24, 2021
Phase 1 CME FX Link Enhancements – February 21, 2021
Phase 1 CME FX Link Enhancements: Drop Copy Impact – February 21, 2021

BOX Business Continuity Planning – Trading Floor Closure

SIX White Paper: Future Of Brick & Mortar Commerce
Is there a future for traditional retailing and what does it look like? Why are more and more online retailers opening physical stores? And what opportunities are available to retail banks in the new shopping world?


What Are Algorithms and Are They Biased Against Me?
Dina Bass – Bloomberg
Every minute, machines are shaping somebody’s future, as software decides which hospital patients should get extra monitoring or which credit card applicants get a thumbs-down. The hope was that programs combining objective criteria and mountains of data could be more efficient than humans while sidestepping their subjectivity and bias. It hasn’t worked out that way. Instead, the hospital program was found to underestimate the needs of Black patients, and the credit card software is being investigated after complaints that it discriminated against women. Algorithms, the logic at the heart of such programs, can replicate and even amplify the prejudices of those who create them.

German audit watchdog chief faces probe over Wirecard share trading; Head of Apas under fire after admitting he bought and sold shares during body’s investigation into company’s auditor
Olaf Storbeck
Germany is to probe the head of the country’s audit watchdog after he admitted to buying and selling shares in Wirecard while his own institution was investigating the fraudulent payments company’s auditor.

Standard Chartered invests in OpenFin; The new capital from Standard Chartered will accelerate product development at OpenFin and brings its total funding to date to $50 million.
Annabel Smith – The Trade
Operating System (OS) OpenFin has secured a strategic investment from SC Ventures, the FinTech venture business arm of investment bank Standard Chartered.

Whatever your workload, the cloud is coming for it
The Trade
It wasn’t so many years ago that I inadvertently found myself obsessed by the race to zero (latency). In the world of derivatives, market making and algorithmic trading, speed was everything and I took for granted the infrastructure that underpinned the markets of the world that were the electronic playgrounds of some of my algos.

AMP Capital promotes EMEA dealing head to lead division globally; Dylan Kluth will assume the role of head of dealing at AMP Capital after working across its various business divisions for the last 11 years.
Annabel Smith – The Trade
Australian asset manager AMP Capital has promoted its EMEA and Americas dealing head to oversee its dealing operations globally. Dylan Kluth assumed the role of head of dealing at AMP Capital this December after serving as head of dealing for EMEA and the Americas since January.

JPMorgan Completes Live Blockchain Repo Trade Ahead of New Product Launch
Tanzeel Akhtar – Coindesk
Investment bank JPMorgan says it has completed a live intraday repo transaction using a blockchain solution that will soon see a commercial launch. The repo trade was carried out between JPMorgan’s broker-dealer and banking entity, the bank announced Thursday. The blockchain application used was developed in-house by the bank’s blockchain business arm, Onyx, and is said to support the settlement and maturity of such transactions in hours rather than days.


Sweden Explores Moving to a Digital Currency
Rafaela Lindeberg and Ott Ummelas – Bloomberg
Sweden’s government will start exploring the feasibility of having the country move to a digital currency, marking another step into the unknown for the world’s most cashless society. Per Bolund, financial markets minister, said a review launched on Friday is expected to be completed by the end of November in 2022. Anna Kinberg Batra, a former chairwoman of the Riksbank’s finance committee, will lead the inquiry.

India’s Banks Are Once More Serving Crypto Traders and Exchanges
Omkar Godbole – Coindesk
Banks in India are again doing business with select cryptocurrency exchanges and their customers. Top institutions such as State Bank of India, ICICI Bank, HDFC Bank and Yes Bank are allowing customers to use their bank accounts to fund cryptocurrency trading. They are further offering various facilities to cryptocurrency exchanges, sources familiar with the matter told The Economic Times. Accounts of major exchanges had been suspended after the Reserve Bank of India issued an order barring banks from using their systems for cryptocurrency-related transactions in April 2018. The ban was quashed by the Supreme Court earlier this year.

The Wealthy Are Jumping Into Bitcoin as Stigma Around Crypto Fades; With Bitcoin surging more than 270% since March, the rich are ratcheting up investments in digital currencies and anticipating further gains.
Edward Robinson and Benjamin Stupples – Bloomberg
Christian Armbruester wishes he’d bought more. Armbruester, the founder of Blu Family Office, a London-based investment firm for wealthy clients, dabbled in cryptocurrencies a few years ago. But the onetime investment banker, whose family made a fortune in metals and manufacturing, believes cryptocurrencies have earned a place in a diversified portfolio. With Bitcoin surging more than 270% since its 12-month low in March, he’s ratcheting up his investments in the space and eyeing big gains.

169-Year-Old MassMutual Invests $100 Million in Bitcoin
Olga Kharif – Bloomberg
Investment represents 0.04% of its general investment account; Insurer also makes $5 million equity investment in NYDIG
Massachusetts Mutual Life Insurance Co. has purchased $100 million in Bitcoin for its general investment fund, the latest mainstream firm to dabble in digit assets.

MassMutual Joins the Bitcoin Club With $100 Million Purchase; Investment is latest sign of mainstream acceptance for upstart digital currency
Paul Vigna – WSJ
Massachusetts Mutual Life Insurance Co. bought $100 million of bitcoin for its general investment account, the latest sign of mainstream acceptance for the upstart digital currency.

Coders Flock Back to Crypto Projects With Prices Surging Again
Olga Kharif – Bloomberg
After a two-year drop, the number of new developers is rising; More than 80% of active developers began in the last two years
Software developers are flocking back to the cryptocurrency world at a level not seen since the market last peaked three years ago. The number of new developers increased this year for more than three months in a row for the first time since 2017, according to a report from Electric Capital, a venture firm that invests in crypto startups. That marks a reversal of a sharp two-year decline in developer interest that followed the 2018 plunge in digital token prices and the collapse of initial coin offerings.

State Street Joins S&P to Fund Crypto-Assets Software Firm
Joanna Ossinger – Bloomberg
Lukka raises $15 million to develop software, data products; S&P already developing global crypto index with Lukka
State Street Corp. and S&P Global Inc. participated in a funding round for Lukka Inc., giving a boost to the U.S. cryptocurrency software and data provider that’s already working on a global crypto index with S&P.

New York Attorney General Says Bitfinex, Tether Could Complete Loan Document Handover in ‘Weeks’
Sebastian Sinclair – Coindesk
The New York Attorney General (NYAG) anticipates the handover of loan documents relating to an alleged $850 million cover-up will be completed in “the coming weeks.” In a letter filed with the New York Supreme Court on Wednesday, the NYAG said stablecoin issuer Tether and cryptocurrency exchange Bitfinex had been cooperating with its inquiry. The NYAG also noted the timeline for documents to be handed over would come after a deadline, previously mediated by the court, that once again ordered the crypto companies to hand over documents outlining their financial relationship.

Wallets With Over 1,000 Bitcoin Have Hit Record Number: Chainalysis
Omkar Godbole – Coindesk
The popular narrative that institutional bitcoin investors have been leading the 2020 price rally looks to be backed up by on-chain data. In 2020, the number of wallets – defined as a set of blockchain addresses controlled by a single entity – holding at least 1,000 bitcoins has increased by 302 (17%) and is now at a record high of 2,052, according to Philip Gradwell, economist at Chainalysis. “That’s a big increase in the wealthiest wallets and provides evidence that institutional investors have entered the market,” Chainlysis noted in its weekly market intel newsletter dated Dec. 10.

Bitwise’s crypto index fund does more volume than ETHE on its second day in the OTC market
Aislinn Keely – The Block
Bitwise’s crypto index fund has done more volume than Grayscale’s record-breaking Ethereum product on its second day live, according to market data. Thursday’s trading day volume reached $33,162,394, eclipsing Grayscale’s ETHE by more than $2 million.

Crypto security startup Curv launches new product for institutions to access DeFi
Saniya More – The Block
Crypto security startup Curv is rolling out a new decentralized finance (DeFi) solution that it says will make it easier for institutions to access DeFi apps. Curv DeFi will build on the startup’s integration with the Compound protocol earlier this year as well as its recent partnership with ConsenSys. According to a Thursday announcement, Curv DeFi will use the interoperability and user interface of ConsenSys-owned MetaMask to provide its clients with “a unique offering that combines ease-of-use with the enterprise-controls and enforcement mechanisms institutions require to build out their DeFi strategies.”


Yellen Gets a Shot to Throw Treasury’s Clout Into Climate Fight
Saleha Mohsin and Jennifer A Dlouhy – Bloomberg
She is seen using FSOC to force companies to consider risks; Yellen warned failing to address risks will be ‘devastating’
Janet Yellen has promised to make fighting climate change a priority as Treasury secretary, spurring hope among activists she will put the issue at the center of U.S. economic policy for the first time.

106 House Republicans Back Trump’s Bid to Overthrow the Government ; Nothing to see here, just an attempted coup by the president and half of all Republicans in the House.
Bess Levin – Vanity Fair
More than four weeks after losing the 2020 election, Donald Trump, the most pathetic president in modern history, is still insisting the whole thing was stolen from him and that he will serve a second term, despite being laughed out of court more than 50 times in one month. Obviously, the odds of him actually remaining in the White House past January 20, 2021 are somewhere around those of the public finding out he only eats food that he’s foraged himself, or that he’s fluent in Mandarin and has been keeping it from everyone this entire time. Ultimately, he will go away, even if the Secret Service has to drag him from the Oval Office kicking and screaming, his nails dragging along the carpet, leaving orange bronzer streaks from the Resolute Desk to the door. So we don’t actually have to worry about him successfully overthrowing the results of the election, but what we should probably be concerned with are the dozens of Republicans happily, publicly trying to help him execute his coup.

There’s a responsible way to end the federal marijuana ban; The key to any nationwide legalization is to keep the free market out of it.
Ramesh Ponnuru – Bloomberg
On marijuana, politicians are catching up with public opinion, and the federal government is catching up with the states. Fifteen states plus the District of Columbia have made recreational use legal, including Illinois. Most states have made it legal for medical (and “medical”) reasons. Polls show majority support for that policy.

Donald Trump Labelled ‘Loser of the Year’ by Europe’s Biggest News Magazine
Brendan Cole – Newsweek
The German magazine Der Spiegel has delivered a withering assessment of President Donald Trump’s 2020 in an article headlined “The loser of the year.”


Global Markets Advisory Committee to Meet December 17
The Global Markets Advisory Committee (GMAC) announced it will hold a public meeting on Thursday, December 17, 2020. The meeting will begin at 9:15 a.m. (EST) via teleconference in accordance with the agency’s implementation of social distancing due to the COVID-19 (coronavirus) pandemic. CFTC Commissioner Dawn Stump is the sponsor of the GMAC.

Mastercard Loses $18.6 Billion Class Action Court Ruling
Jonathan Browning – Bloomberg
Supreme Court gives green light to largest U.K. class action; Legal challenge will now be heard by specialist tribunal
Mastercard Inc. faces the prospect of a 14 billion-pound ($18.6 billion) U.K. class action — the largest of its kind — after losing another battle at the country’s highest court over illegal swipe fees.

Regulator allows UK banks to restart dividends; PRA sets out guidelines for how much lenders can pay out after curbs imposed in early stages of pandemic
Matthew Vincent and Owen Walker – FT
The UK banking regulator has given lenders the green light to resume dividend payments, nine months after it asked them to suspend shareholder payouts and preserve capital at the height of the coronavirus pandemic.

Bernie Madoff victims to get another $488 million payout, DOJ says
Rebecca Rosenberg – NY Post
Bernie Madoff victims will get another $488 million in recovered funds, the Department of Justice announced Thursday.

ESMA to recognise Euroclear UK & Ireland Limited (EUI) after Brexit transition period
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has announced today that Euroclear UK & Ireland Limited (EUI), the central securities depository (CSD) established in the United Kingdom (UK), will be recognised as a third-country CSD (TC-CSD) after the end of the UK’s transition from the European Union (EU) on 31 December 2020.

Maintaining Over $100 in Savings Linked to Increased Likelihood of Financial Stability in Lower Income Households
As many Americans head into the holidays unemployed and behind in rent and utility bills, a new report from the FINRA Investor Education Foundation and SaverLife found that people who maintained more than $100 in savings were much less likely to have their utilities shut off or resort to high-cost borrowing methods. Those who had more than $250 in savings experienced reduced likelihood of losing their housing for financial reasons. In addition, individuals with a savings balance over $100 were much more likely to say they were financially satisfied.

FINRA OTCE and OTC Transparency Data Websites Availability
FINRA will be performing scheduled maintenance to the and websites on Saturday, December 12, 2020, from approximately 10 a.m. to 4 p.m. ET. During this time, these websites will be unavailable to users.

Enforcement Director Stephanie Avakian To Conclude Tenure After Four Years Leading the Division
The Securities and Exchange Commission today announced that Division of Enforcement Director Stephanie Avakian will conclude her tenure by the end of the year. Ms. Avakian, who began her career at the SEC, leaves the agency after leading the Enforcement Division over the last four years as Co-Director and then Director.

SEC Staff Supplements Quarterly Private Funds Statistics
The Securities and Exchange Commission staff today published an expanded suite of data and analyses of private fund statistics and trends. The Private Funds Statistics, released quarterly since October 2015 by the Division of Investment Management’s Analytics Office, offers investors and other market participants valuable insights by aggregating data reported by private fund advisers on Form ADV and Form PF. The most recent version of the report, published today, includes new statistics that offer more detailed reporting of the aggregate investment exposures by asset type for certain hedge funds as well as new analysis of private funds’ borrowing, beneficial ownership, and use of stress testing.

Liberty’s Loss
Commissioner Hester Peirce – SEC
Remarks to The Federalist Society’s Capital Conversations: A Teleforum Series
Thank you, Dean [Reuter]. I have to start with my standard disclaimer, which is that my views represent my own views and not necessarily those of the Securities and Exchange Commission or my fellow Commissioners. Last week, the nation lost economist Walter Williams. Dr. Williams, in addition to his academic research, spent his career explaining economics to both graduate and undergraduate students in the classroom and ordinary people in his syndicated columns.

Technology Advisory Committee Releases Agenda for Upcoming Public Meeting
The Technology Advisory Committee (TAC) today released the agenda for the upcoming public meeting that will be held via teleconference on Monday, December 14, 2020. CFTC Commissioner Brian Quintenz is the sponsor of the TAC.

New executive appointments at Financial Conduct Authority
The FCA has appointed Sheldon Mills as the new Executive Director, Consumers and Competition, and Siobhán Sheridan as Chief People Officer.

FCA launch consultation to assist parties in proving presence of coronavirus in business interruption insurance claims
We are launching a short consultation on guidance to help policyholders, insurers and insurance intermediaries judge how the presence of coronavirus (Covid-19) in a particular area may be proved. We are launching this consultation so that we will be in a position to issue it as soon as possible, once we have the judgment of the Supreme Court.

Justice Department Announces Additional Distribution of more than $488 Million to Victims of Madoff Ponzi Scheme
U.S. Department of Justice
The Department of Justice announced today that the Madoff Victim Fund (MVF) began its sixth distribution of approximately $488 million in funds forfeited to the U.S. Government in connection with the Bernard L. Madoff Investment Securities LLC (BLMIS) fraud scheme, bringing the total distributed to almost $3.2 billion to nearly 37,000 victims worldwide.

Monetary Authority Of Singapore Expands Mandate Of Industry Steering Committee To Drive SIBOR Transition
The Monetary Authority of Singapore (MAS) announced today that the mandate of the Steering Committee for SOR Transition to SORA (Committee) will be expanded to enable it to oversee the interest rate benchmark transition from SIBOR to SORA. [1] This follows a joint industry report published today announcing the discontinuation of the remaining SIBOR tenors in phases over the next four years. The Committee will be renamed as the Steering Committee for SOR & SIBOR Transition to SORA (SC-STS).

FCA bans risky retail investments, warns tech firms; The regulator has banned the marketing of speculative, illiquid securities to retail investors
James Langton – Investment Executive
The U.K.’s Financial Conduct Authority (FCA) is banning the sale of risky, illiquid securities to retail investors — and calling out tech giants for their role in enabling their distribution.

Ontario Securities Commission Publishes Report On Exempt Market Activity
The Ontario Securities Commission today published a report on capital raising activity by corporate (non-investment fund) issuers in Ontario’s exempt market between 2017 and 2019. The report provides a snapshot of key trends relevant to investors and issuers.

Investing and Trading

Airbnb Valuation Reaches $100 Billion in Trading Debut Surge
Olivia Carville, Katie Roof, and Crystal Tse – Bloomberg
Home-rental platform stock opened at $146 after pricing at $68; First-day gains follows DoorDash’s jump, in year-end IPO rush
Airbnb Inc. shares more than doubled in their trading debut, propelling the home-rental company to about a $100 billion valuation and one of the biggest first-day rallies on record. The shares closed Thursday at $144.71 up 113% from the $68 initial public offering price. The listing came 10 months after the Covid-19 pandemic upended travel and 24 hours after DoorDash Inc. soared in its public debut.

Environmental, Social and Corporate Governance

Fidelity, UBS Join Investors Making $9 Trillion Net-Zero Pledge
Alastair Marsh – Bloomberg
The group’s ‘financial firepower’ intended to lower emissions; Managers will review their targets every five years or less
A group of 30 asset managers overseeing a combined $9 trillion of assets said they will support efforts to limit global warming by running carbon-neutral investment portfolios by 2050 or sooner.

Fund managers with $9tn in assets set net zero goal; Fidelity International, LGIM, Schroders, DWS to work with clients to cut emissions by 2050
Attracta Mooney – FT
Thirty of the world’s biggest asset managers, which collectively oversee $9tn, have set a goal of achieving net zero carbon emissions across their investment portfolios by 2050 in a move expected to have huge ramifications for businesses globally.

ExxonMobil under pressure as Church of England joins investor campaign; US oil group faces calls for change from activist shareholders including hedge fund DE Shaw
Ortenca Aliaj, Derek Brower and Myles McCormick – FT
The Church of England has joined a growing investor campaign demanding sweeping changes at ExxonMobil, saying it was backing calls for the appointment of new directors and for the oil supermajor to develop a pragmatic strategy for the transition to cleaner fuels.


Barclays Rethinks Real Estate Needs in Cost-Cutting Push
Stefania Spezzati – Bloomberg
Board reviewing if pandemic-era working practices will stick; A final decision hasn’t been made but change may come in 2021
Barclays Plc is looking to reduce its real estate expenses in the U.K., U.S. and India as the shift to remote working adds fuel to its cost-cutting ambitions. The bank could announce changes early next year although the board has not taken a final decision on the extent and timing of any measures, people with knowledge of the matter said. Further reducing branches in the U.K., which was already being examined before the pandemic, is one option under scrutiny, the people said, asking not to be named discussing private information.

Gary Cohn donates $10M to charity amid Goldman Sachs standoff
Thornton McEnery – NY Post
Gary Cohn would rather give millions to charity than let Goldman Sachs claw it back from his famously large hands. The beefy Wall Street big, who spent nearly a decade as the No. 2 executive at Goldman, has spent nearly two months in a standoff over the bank’s reported demand that Cohn pay $10 million to make amends for Goldman’s role in the 1MDB Malaysian corruption scandal that led to $5 billion in fines.

JP Morgan executes repo trade with blockchain after pilot with Goldman Sachs and BNY Mellon; With an in-house developed blockchain application and simulation with Goldman Sachs and BNY Mellon, JP Morgan executed a repo trade that was settled instantly.
Hayley McDowell – The Trade
JP Morgan has executed a repo trade using an in-house blockchain application following successful simulations with Goldman Sachs and BNY Mellon.

Mizuho veteran joins IHS Markit to lead global markets business in Asia Pacific; Seiichiro Miyaoka joins IHS Markit as head of the Global Markets Group in Asia from broker dealer Mizuho Securities.
Annabel Smith – The Trade
IHS Markit has appointed a senior veteran from broker dealer Mizuho Securities to head up Global Markets Group (GMG) in Asia Pacific. Seiichiro Miyaoka takes on the newly created role based in Tokyo overseeing IHS Markit’s engagement with clients across the region and reinforcing its position in capital markets.


Investors Are Learning to Live With China’s Corporate Defaults
Bloomberg News
2021 could be ‘inflection point’ for credit risk pricing: BNP; Riskier SOEs’ bond yields hit record high after default wave
China’s authorities are increasingly spreading the message: you should get what you pay for when it comes to corporate bonds. Beijing is allowing a wave of defaults by state-linked companies in the country’s $15 trillion credit market. This week, prominent chipmaker Tsinghua Unigroup Co. defaulted on $450 million of dollar debt triggering cross-defaults on another $2 billion — equivalent to almost two-thirds of the total defaulted debt in China’s offshore bond market in 2019.

South Korea’s booming stock market lures foreign investors; Global funds have bought a net $5bn of shares since the start of November
Song Jung-a I- FT
Foreign investors are flocking to South Korea’s red hot stock market, one of the world’s best-performing this year, as signs of a strong economic rebound from Covid-19 fuel demand.

Price of polluting in EU rises as carbon price hits record high; Expectation of tougher emissions targets drives up cost of allowances
David Sheppard – FT
The price of polluting in the EU rose as the carbon price closed at a record level on Thursday, in what was hailed as a “landmark” moment for the bloc’s efforts to curb emissions and combat climate change.

West Africa vs Big Chocolate: Battle over price sours relations; Ivory Coast and Ghana struggle to boost farmer incomes from commodity that underpins $100bn industry
Neil Munshi and Emiko Terazono – FT
The 100,000 cocoa farmers Frank Okyere represents as head of Ghana’s Kuapa Kokoo co-operative eke out hardscrabble lives despite producing the raw material for a global chocolate industry worth an annual $100bn in retail sales.


No-deal Brexit now a strong possibility, says Boris Johnson – video
The Guardian
Boris Johnson has said there is a ‘strong possibility’ the UK will fail to broker a trade deal with the EU, as he urged the public to prepare for the end of the Brexit transition period. The prime minister made the statement as talks remained deadlocked after a personal meeting with the European commission president, Ursula von der Leyen, on Wednesday night.

Jaded Pound Analysts Are Unconvinced by Latest Brexit Deadline
William Shaw and Greg Ritchie – Bloomberg
When it comes to Brexit trade deal deadlines, talk is cheap. That’s the view of an increasing number of currency strategists after negotiators again pushed back the cutoff point for talks, this time until Sunday.
RBC Europe Ltd., Nomura International Plc and Citigroup Global Markets Ltd. are focusing instead on Dec. 31 when the Brexit transition period officially ends, and there’s even speculation at banks about an informal extension into 2021 amid sputtering political progress. The pound fell as much as 1.2% on Friday to $1.3135, its lowest since Nov. 13.

EU makes fishing and transport no-deal offers in return for ‘level playing field’
Daniel Boffey, Jon Henley and Kevin Rawlinson – The Guardian
The EU will also offer British fishermen access to its seas and open negotiations over quotas, if the UK government reciprocates.
The European commission said the offers were for a limited period and it was only willing to act to avoid the worst disruption, including the risk of outbreaks of violence.

UK business travellers to EU ‘face fines’ over post-Brexit permits
Lisa O’Carroll – The Guardian
Business travellers will face fines of up to EUR20,000 (£18,240) if they do not apply for special permits for visits to conferences or exhibitions in the European Union if there is no Brexit deal for the service industry, industry leaders have warned. “What you can’t do post-Brexit as a third-country national is simply think that you can get on Eurostar and rock up as you did before when we were a member state of the EU, you can’t just do that,” said Tim Thomas, a consultant with specialist firm International Employment Mobility Consultancy.

No-deal Brexit would make Britons less safe, ex-national security adviser says
Dan Sabbagh – The Guardian
A former national security adviser has warned that Britons would be “all less safe” in the event of a no-deal Brexit, as the UK will lose real-time access to a string of European crime databases which cannot easily be replaced. Lord Ricketts said British police face “a serious capability gap” from the end of the year unless the EU and UK can strike a trade and security deal because “the fallbacks are all slower and more clunky”. No deal, he said, would see Britain definitively lose access to the Schengen database containing information about who is wanted or missing across the EU, replacing it with an Interpol system that is not integrated into UK police or border systems.

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