The Four Biggest Ways That Robinhood Changed Investing

Jul 29, 2021

First Read

$51,906/$300,000 (17.3%)

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Options Continue to Lead Derivatives Volume Uptrend, but Q2 Lags, FIA Data Show
Suzanne Cosgrove – John Lothian News

Global futures and options volumes continued to trend higher in the first half of 2021 compared to both 2020 and 2019, with growth largely driven by options trading, according to Futures Industry Association data released late Tuesday.

Exchange-traded futures and options volume was up 32.1% compared with the total logged in the first six months of 2020, with 28.9 billion contracts traded in the first half of 2021. Just over half of the volume in the latest period was in options, with 14.5 billion contracts, which represented a 50.2% gain over the number of options traded from January through June of 2020.

Trading volume in futures and options was down 5% in the second quarter compared with the first quarter, but is still on an upward trajectory begun in 2019, said Will Acworth, senior vice president of FIA publications, data and research.

Total open interest data — regarded as a gauge of institutional trading patterns — hit 1.1 billion contracts at the end of the second quarter, unchanged from first-quarter 2021.

Read more HERE.

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Hits & Takes
John Lothian & JLN Staff

FIA is extending the application deadline for the Innovators Pavilion and pitch competition at Expo this November. Fintech startups now have until August 6 to apply. You can apply at www.fia.org/innovators.

Economics Editor Peter Coy has left Bloomberg after 32 years at Bloomberg/BusinessWeek and joined the New York Times as an economics writer. Coy is the author of many commentaries that have graced this newsletter with his enterprising subjects and elegant writing. I wish him the best of luck at the Gray Lady.

What is the human cost of climate change? A new study referenced in a Bloomberg story says a warming planet means 83 million deaths from heat this century. — Bloomberg

Tony Crane is starting a new position as advisor, Japan Market at European Energy Exchange AG. Previously, Crane was with FIA Japan, and he was an advisor to the Tokyo Commodity Exchange before that. I met Tony when he was at TOCOM and I travelled to Tokyo for the FIA Asia conference in 2008. That was the conference that was timed for the financial crisis meltdown.

Sean Smith has left FTSE Russell and is now a managing director of derivatives licensing for Qontigo, which is part of Deutsche Börse Group. Sean has worked for CME Group twice and now Deutsche Börse Group twice.

ICE is looking for a director of events for NYSE. — NYSE

The Wall Street Journal reports we should “Brace for Higher Prices for Ice Cream, Tequila and Bottled Water.” There go my tequila sundaes. — WSJ

My good friend the Rev. Jeff Gill, whom I met at Purdue at University Church when we were both student associates in ministry, has a regular column he writes for The Granville Sentinel. He wrote a column about our dinner in Granville, admiring the sunset and the evening setting upon us. — Notes from My Knapsack

There were no new donations to the JLN MarketsWiki Education GoFundMe campaign yesterday.

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 State of Illinois is proceeding with the first of its long-awaited series of dispensary lotteries today as scheduled, although the winners will not be awarded their licenses until after an August 9 court hearing on a lawsuit, Wah v. IDFPR, according to a report in the newsletter Grown In. A Cook County Circuit Court judge ordered the stay on the actual awards Wednesday in a ruling on the case. A separate federal lawsuit on the lotteries filed by Sozo Health, a Michigan-based cannabis company, was dropped earlier this week. More details here. ~SC

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The Covid virus is an ever-evolving threat; The constant march of variants shows how difficult it will be to beat, but the human immune system is a powerful defence
Stephen Buranyi – FT
Early in the pandemic, scientists were uncertain about how quickly the new coronavirus would mutate. Since then, a steady stream of viral variants has dashed hopes that it might be a slow mover. The Delta variant first identified in India is now the dominant strain in the UK and is spreading rapidly in Europe and the US. Delta is much more transmissible than even the previously fastest-spreading variant although, thankfully, vaccines still appear to be highly effective against it.
/on.ft.com/3zOcMa9

***** It is going to take a lot longer than we all think to beat this virus.~JJL

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Capitalists can play a vital part in saving US democracy; Asset owners such as pension funds and university endowments must speak out against voter suppression
Katherine Venice – FT
Can capitalism be made into a force to serve the greater good and solve society’s most urgent systemic problems? As former institutional investors, we believe it is time for capitalists, especially asset owners such as pension funds, university endowments, foundations and sovereign wealth funds, to stand up for democracy.
/on.ft.com/2Wn1HOP

****** This is a very old concept, the importance of property owners and democracy. But we all need to play our part in defending democracy from all enemies, foreign and domestic.~JJL

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Companies Face the Big Work Question: Return to Office … or Not?
As fall approaches, employers find themselves retooling policies for hybrid, remote, and in-office work.
Jeffrey Green – Bloomberg
Sixteen months after the novel coronavirus upended white-collar work, corporate America is moving toward a shift that’s shaping up to be uncertain at best, or chaotic at worst. Vaccination campaigns are approaching their limits, and it appears Covid-19 will become endemic. That’s led major U.S. companies to coalesce around September to put their new in-office, hybrid, or remote working plans in action, even as the fast-spreading delta variant adds to the complexities. Beyond deciding where employees should be located, there are the thorny issues of maintaining culture, allowing flexibility, and updating policies so those already hit hardest by the pandemic—women and minorities—aren’t left behind. “Policies have absolutely not caught up with reality, and we don’t yet know what the reality is going to be,” says Laurie Bienstock, a director at consultant Willis Towers Watson.
/bloom.bg/3rH2MwC

****** I think we should all invest in yo-yos as this is going to be an ongoing issue, back and forth and back and forth.~JJL

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China Convenes Banks in Bid to Restore Calm After Stock Rout
Bloomberg News
CSRC meeting follows sharp drop in China’s equity market; Investors have been spooked by crackdown on education firms
China’s securities regulator convened executives of major investment banks on Wednesday night, attempting to ease market fears about Beijing’s crackdown on the private education industry.
/bloom.bg/3rEh94S

******All is well. Here is some money. All is well.~JJL

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Dubai Is Using Laser-Beam-Shooting Drones to Shock Rain Out of the Sky
Cheryl Teh – Insider
Dubai’s National Center of Meteorology has found a new way to make it rain. They’re using laser-beam-shooting drones to generate rainfall artificially. Last week the country’s weather service posted two videos offering proof of the heavy downpours in Dubai’s streets.
/bit.ly/3f8kF2u

****** Why not try anything in order to make it rain where it often does not?~JJL

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Wednesday’s Top Three
Our top story Wednesday was Bloomberg’s Credit Suisse’s Archegos Inquiry Rips Bank’s Due Diligence. Second was The New York Post’s How new CDC guidance could impede Wall Street’s return to the office. And third was JLN’s video interview, Yra Harris – Open Outcry Traders History Project – Part 2.

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MarketsWiki Stats
26,494 pages; 234,810 edits
MarketsWiki Statistics

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Lead Stories

The Four Biggest Ways That Robinhood Changed Investing; A simple, app-based interface upended the brokerage business and is making its debut on a stock market that it’s already changed.
Annie Massa – Bloomberg
Not so long ago, before the pandemic took hold in the U.S., it seemed like standalone retail trading firms were a thing of the past. E*Trade, the brokerage that gained notoriety in the dot-com boom, sold itself off to Morgan Stanley. Charles Schwab Corp. and TD Ameritrade, two of the largest brokers, inked a deal to combine in November 2019, forming a single supermarket for everything from financial planning to exchange-traded funds.
/bloom.bg/37bfwSN

Senators Eye Cryptocurrency Taxes to Fund Infrastructure Plan
Laura Davison – Bloomberg
Transactions of $10,000 or more would be reported to IRS; Crypto measures would raise $28 billion to offset plan costs
The Senate’s bipartisan infrastructure deal envisions imposing stricter rules on cryptocurrency investors to collect more taxes to fund a portion of the $550 billion investment into transportation and power systems.
/bloom.bg/3f9mhZv

Credit Suisse Rethinks What Makes a Dream Client After Crises
Marion Halftermeyer and Ambereen Choudhury – Bloomberg
Bank cuts ties with some customers in high-growth Asia unit; But CEO says recent volatility in markets won’t deter plans
As Credit Suisse Group AG reins in risk, it may be reconsidering what it’s looking for in an ideal client. The Swiss firm, which has been courting wealthy entrepreneurs in Asia, cut ties with some customers in that region last quarter, leading to the loss of $4.2 billion of client assets. The move followed the bank’s pledge of a thorough risk review of all its divisions after a pair of blowups in recent months, as well as last year’s losses tied to a wealth client in Asia.
/bloom.bg/3y85U74

Crypto Exchange Competition Heats Up With FTX.US Growth Spurt
Vildana Hajric – Bloomberg
FTX.US’s marketing push appears to be making headway amid a broader surge in interest about cryptocurrency trading. The U.S. affiliate of Sam Bankman-Fried’s crypto exchange FTX said Thursday its average daily volume reached new highs in the first half of the year as digital-asset prices surged, and amid a massive advertising campaign targeting retail investors. Daily volumes were between $150 million and $1 billion in the first half, according to a release. That makes it one of the largest crypto exchanges in the U.S. by volume, the company said.
/bloom.bg/3j3qPSm

SEC Weighs Making Companies Liable for Climate Disclosures; Chairman asks staff to consider whether climate-related statements should be required in 10-K annual reports
Paul Kiernan – WSJ
Public companies could be required to disclose climate-change related risks to investors in regulatory filings under a proposal being formulated by the Securities and Exchange Commission, a step that could expose them to new litigation threats.
/on.wsj.com/2WpHqYW

Fed Launches Standing Repo Facility to Boost Market Liquidity; The Fed is putting a $500 billion cap on the facility and is offering a similar tool to foreign central banks
Michael S. Derby – WSJ
The Federal Reserve is launching new facilities designed to provide liquidity to big Wall Street banks and foreign institutions like central banks, which could help ensure market stability at times of stress.
/on.wsj.com/2USiol3

Wall Street legend Richard Dennis conducted an intellectual experiment that turned 23 novice investors into overnight millionaires. Here are the 6 trading rules and philosophies that his ‘turtle traders’ live by.
Vicky Ge Huang – Business Insider
In the trading hall of fame, Richard Dennis may not ring a bell like Paul Tudor Jones or George Soros. But he is a legend in his own right. Far from the glitz and glam of Wall Street, Dennis grew up in the open-outcry trading pits in Chicago. By the age of 25, he had made $1 million in the early 1970s, according to Michael W. Covel, the author of “The Complete TurtleTrader: How 23 Novice Investors Became Overnight Millionaires.”
/bit.ly/3C3gdfh

Robinhood IPO is ‘effectively selling investors on exploiting other investors,’ New Constructs CEO argues
Grace O’Donnell – Yahoo Finance
As Robinhood (HOOD) prepares for its IPO on July 29 in a bid for a $35 billion valuation, some analysts warn that the company’s business model — specifically its reliance on payment for order flow (PFOF) — is an unseemly practice that won’t last.
/yhoo.it/2V3Gf19

Citadel Securities would buy Robinhood if regulators crack down on this one money-maker: Interactive Brokers founder
Brian Sozzi – Yahoo Finance
If U.S. regulators crack down on the controversial practice of payment for order flow, it may have one unintended consequence. Big trading outfits could become much larger and even more influential in markets, explains Interactive Brokers chairman and founder Thomas Peterffy.
/yhoo.it/3zPmhps

CME profits rise as micro futures lure retail investors
John McCrank – Reuters
CME Group Inc, the largest futures exchange operator, reported higher second-quarter profit on Wednesday, spurred by lower expenses, a rise in hedging and micro futures, including in oil and bitcoin, that lured retail interest.
/yhoo.it/3f6cpA0

Why Contracts for Difference Are Back Under Scrutiny
Donal Griffin – Bloomberg
Contracts for difference, or CFDs, have hastened the demise of an Irish bank, triggered alleged Ponzi schemes in Chile, featured in a $100 million U.S. insider-trading racket and seen echoes of their use in the implosion of Archegos Capital Management. They’ve also spooked regulators because of the risks they pose to retail investors, sparking tighter rules in the U.K. and European Union. But new regulations didn’t stop amateur traders flocking to CFDs in 2020 as a result of volatility during the pandemic, and again in 2021 as part of a surge in retail interest in global markets.
/bloom.bg/3iUWWnk

‘The IPO is a black box’: Robinhood’s unconventional stock market debut; Brokerage to set aside up to 35% of shares for retail investors on its own app in break from norm
Madison Darbyshire and Eric Platt – FT
The decision by retail brokerage app Robinhood to reserve an unusually large stake in its initial public offering this week for its own customers has money managers girding for a volatile trading debut.
/on.ft.com/3f5axYh

Climate change is a global threat demanding national solutions; The lofty hopes of the COP26 process will have meaning only if they connect with local politics
Philip Stephens – FT
There is climate politics, and there is national climate politics. What we are watching now is the international brand conducted at 20,000 feet — the global confabs of politicians, scientists and environmentalists ahead of the UN COP26 climate change conference to be held in Glasgow. Few pay much attention to what happens at ground level — the gritty local politics that will ultimately decide how much actually gets done to limit global warming.
/on.ft.com/3zP6KWI

US Treasury market needs urgent reform, warn former policymakers; Heavyweight group proposes sweeping changes to prevent repeated market meltdowns
Colby Smith – FT
The $22tn market for US government debt risks being rattled by frequent bouts of dysfunction that threaten global financial stability unless urgent reforms are made to enhance liquidity, according to a group of heavyweight former policymakers.
/on.ft.com/3l56KOl

Credit Suisse Failed to Act on Archegos Risks, Report Says; Risks were ‘identified and were conspicuous’ according to a bank-commissioned investigation, which blames top employees for not taking action
Margot Patrick – WSJ
Credit Suisse Group AG CS 0.78% knew Archegos Capital Management was a massive risk and didn’t take actions to fix it, according to an investigation the bank commissioned into the collapse of the family investment firm.
/on.wsj.com/3zTlbJD

Credit Suisse Claws Back Pay as It Faults Staff for Archegos
Marion Halftermeyer – Bloomberg
Bank recouped $70 million in pay and ousted nine executives; Employees ‘systematically ignored’ risk systems, report says
Credit Suisse Group AG’s $5.5 billion of losses tied to Archegos Capital Management stemmed from years of mistakes and misjudgments that continued right up until the days before the family office’s implosion — when the bank handed the firm back $2.4 billion in collateral.
/bloom.bg/3i9um2d

Trading app Robinhood sets share price at low end of range for IPO; Online brokerage fetches valuation of $31.7bn in unusual offering with high retail allocation
Madison Darbyshire and Eric Platt and Miles Kruppa – FT
Robinhood has priced its shares at $38 apiece, the low end of its target range, reflecting slack investor demand for the highly anticipated initial public offering of the popular trading app.
/on.ft.com/2URZkU1

Robinhood prices IPO at bottom of range, valuing trading app at $26.7 billion; Robinhood to charge $38 a share to raise $1.89 billion, stock expected to begin trading Thursday morning under ticker symbol HOOD
Jeremy C. Owens – MarketWatch
Robinhood Markets Inc. priced its initial public offering at the bottom of its expected range Wednesday night, which still values the company at more than double its previous $12 billion valuation.
/on.mktw.net/3x9Lx8o

U.S. banking regulator taps official to oversee climate change risk to banks
Pete Schroeder – Reuters
A leading U.S. bank regulator is creating a new position specifically to monitor climate change risk at the nation’s largest banks. The Office of the Comptroller of the Currency announced Tuesday it had created a Climate Change Risk Officer to lead the agency’s efforts to ensure banks are appropriately managing risk around climate change. The post will be filled by Darrin Benhart, a longtime OCC official who most recently helped supervise Bank of America.
/yhoo.it/2VkoMRX

Beyond the meme: finance gets serious on going viral
Anna Irrera – Reuters
Ian Rogers used to be in charge of digital strategy for luxury fashion group LVMH. Now he has a new mission: to sprinkle some aspirational glitz on to French cryptocurrency company Ledger. Rogers’ new role, to transform Ledger into a consumer brand with viral potential, shows how young consumer finance companies are not only embracing the latest social media channels but also choosing executives and marketing strategies more often associated with lifestyle brands.
/reut.rs/2VgSSWu

Ex-regulators back PTFs’ call to reform Treasuries clearing; G30 proposal comes just weeks after PTFs requested improvements to Ficc sponsored clearing
Philip Alexander – Risk.net
An influential think-tank of policymakers and market practitioners has called on US regulators to make it easier for principal trading firms (PTFs) to clear US Treasuries at the Fixed Income Clearing Corporation (Ficc). The proposal is one of several recommendations made by the Group of 30 for improving the resilience of the US Treasury market at a time of increasing government bond issuance.
/bit.ly/3xbrd6x

What is Robinhood Worth? Opinions abound ahead of the first day of trading for the popular but controversial investment app.
Andrew Ross Sorkin, Jason Karaian, Sarah Kessler, Stephen Gandel, Lauren Hirsch and Ephrat Livni – NY Times
Is Robinhood worth $32 billion?
Robinhood, the investing app, begins trading today, after its highly anticipated initial public offering priced at $38 a share last night. That was at the low end of the range bankers set for the deal, adding extra intrigue to the company’s first day of trading. Even so, Robinhood’s I.P.O. raised $1.9 billion from investors, valuing the eight-year-old firm at nearly $32 billion.
/nyti.ms/3ib9vvx

Coronavirus

EXCLUSIVE AstraZeneca exploring options for COVID-19 vaccine business, exec says
Reuters
AstraZeneca is exploring its options for the future of its COVID-19 vaccine business and expects greater clarity on the matter by the end of 2021, a senior executive told Reuters on Thursday.
/reut.rs/3ibNFIp

Big Tech starts requiring vaccines; Twitter closes re-opened U.S. offices
Reuters
Twitter Inc (TWTR.N) is shutting its reopened offices in United States, while other big tech companies are making vaccination mandatory for on-campus employees, as the highly infectious Delta COVID-19 variant drives a resurgence in cases.
/reut.rs/3yfbqEZ

S. Korea experts call for more COVID curbs as easygoing young fuel surge
Sangmi Cha – Reuters
South Korean health experts called on Thursday for tougher social distancing rules including a midnight curfew as the number of severe COVID-19 cases has doubled in three weeks, driven largely by young, unvaccinated people.
/reut.rs/3rHEJxv

India’s Kerala state orders lockdown as COVID-19 infections rise
Neha Arora, Shilpa Jamkhandikar – Reuters
India’s southern state of Kerala on Thursday announced a two-day lockdown as federal authorities planned to send experts to fight the spread of infections in the country’s leading COVID-19 hotspot.
/reut.rs/3yhwaMo

Emergent to resume J&J COVID-19 vaccine production at Baltimore plant
Reuters
Emergent BioSolutions (EBS.N) said on Wednesday it will resume production of Johnson & Johnson’s (JNJ.N) COVID-19 vaccine at its troubled Baltimore facility, where operations were stopped in April after millions of doses were found to be contaminated.
/reut.rs/3xcst9B

Younger, Sicker, Quicker: The Changing Face of the U.S. Pandemic
Emma Court – Bloomberg
Public will ‘have to relearn’ about Covid after delta: doctor; Contagious strain, unvaccinated pockets weigh on hospitals
Doctors and nurses in Missouri, where the delta virus variant has been causing Covid-19 cases to soar, are seeing patients who are younger and seem to be worsening faster than ever before.
/bloom.bg/3iaZqib

Rise in Covid Tracing Alerts Reveals Scale of U.K.’s ‘Pingdemic’
Emily Ashton – Bloomberg
Almost 690,000 told to self-isolate in the week ending July 21; Pressure on industry could soon ease as coronavirus cases fall
Almost 690,000 people in England and Wales were told to isolate by the official Covid-19 mobile phone app in the week ending July 21, illustrating the pressure on key industries as staff shortages brought some supply chains close to breaking point.
/bloom.bg/3rEiMj0

Citi Reinstates Mask Requirement in Offices After CDC Update
Jennifer Surane – Bloomberg
Citigroup Inc. has gone back to requiring employees — regardless of their vaccination status — to don masks when they’re in the office, according to a person familiar with the matter. Workers can remove their masks when at their desks or while eating in the cafeteria, according to the person, who asked not to be identified discussing personnel information.
/bloom.bg/3zQuJVo

Burundi Capitulates on Vaccines, Leaving One Holdout in Africa
Desire Nimubona – Bloomberg
Burundi will allow the World Bank to arrange for Covid-19 vaccines to be delivered in the country, leaving Eritrea as the sole nation on the continent resisting the shots. “Anyone who wants will be vaccinated,” Health Minister Thaddée Ndikumana said late Wednesday, without disclosing details of the arrangement with the World Bank.
/bloom.bg/3BV9rYE

AstraZeneca reveals strong Covid vaccine sales but warns of US approval delays; Pharma group’s chief executive Pascal Soriot cool on need for booster shots
Hannah Kuchler – FT
AstraZeneca revealed strong Covid-19 vaccine sales but warned it would take even longer to secure approval in the US, the world’s largest pharmaceutical market.
/on.ft.com/3f8Q7xq

Great Britain to allow vaccinated visitors from US and Europe to skip quarantine; Rule change from August 2 will apply to passengers coming from countries on UK’s ‘amber list’
Jasmine Cameron-Chileshe, Philip Georgiadis and Alice Hancock and Andy Bounds – FT
Visitors arriving from “amber” list countries who have been fully vaccinated in the US or much of Europe will be permitted to enter England, Scotland and Wales without having to quarantine, it was confirmed on Wednesday.
/on.ft.com/2WA0kwr

How Contagious Is the Delta Variant? Because people infected with Delta carry much higher levels of virus, it’s time to rethink our behaviors, scientists say
Sumathi Reddy – WSJ
The Delta variant of the virus that causes Covid-19 is often described as highly transmissible. So, what does that actually mean? Scientists studying Covid-19 say that Delta’s increased contagiousness means we need to update our thinking about exposure risks. Because people infected with Delta carry higher levels of virus than with earlier strains, the old rules of thumb no longer apply, they say—including the conventional wisdom that it takes 15 minutes of close contact with someone to get infected.
/on.wsj.com/3l587wt

What if the Unvaccinated Can’t Be Persuaded?
Ezra Klein – NY Times
I hate that I believe the sentence I’m about to write. It undermines much of what I spend my life trying to do. But there is nothing more overrated in politics — and perhaps in life — than the power of persuasion. It is nearly impossible to convince people of what they don’t want to believe. Decades of work in psychology attest to this truth, as does most everything in our politics and most of our everyday experience. Think of your own conversations with your family or your colleagues. How often have you really persuaded someone to abandon a strongly held belief or preference? Persuasion is by no means impossible or unimportant, but on electric topics, it is a marginal phenomenon.
/nyti.ms/3fbKwGu

Another coronavirus variant has reached Florida. Here’s what you need to know.
Lateshia Beachum – Washington Post
A coronavirus variant discovered in Colombia is showing up among patients in South Florida, increasing infections and putting health officials on alert as calls grow louder for unvaccinated individuals to get inoculated.
/yhoo.it/3x6mX8g

Exchanges, OTC and Clearing

Intercontinental Exchange Reports Strong Second Quarter 2021
Intercontinental Exchange
Intercontinental Exchange (NYSE: ICE), a leading global provider of data, technology and market infrastructure, today reported financial results for the second quarter of 2021. For the quarter ended June 30, 2021, consolidated net income attributable to ICE was $1.3 billion on $1.7 billion of consolidated revenues, less transaction-based expenses. Second quarter GAAP diluted earnings per share (EPS) were $2.22. Adjusted net income attributable to ICE was $657 million in the second quarter and adjusted diluted EPS were $1.16.
/bit.ly/3ibc28Z

Intercontinental Exchange Approves Third Quarter Dividend of $0.33 per Share
Intercontinental Exchange
Intercontinental Exchange (NYSE: ICE), a leading global provider of data, technology and market infrastructure, announced today a $0.33 per share dividend for the third quarter of 2021, which is up 10% from the $0.30 per share dividend paid in the third quarter of 2020. The cash dividend is payable on September 30, 2021 to stockholders of record as of September 16, 2021. The ex-dividend date is September 15, 2021.
/bit.ly/3iXA0E5

London Stock Exchange Suffers Indigestion From Refinitiv Deal; U.K. stock exchange operator’s stock price has slumped about 15% since closing $15 billion bet on data, sharply underperforming global peers
Ben Dummett – WSJ
London Stock Exchange LSEG 0.30% Group PLC’s $15 billion acquisition of Refinitiv Holdings Ltd. is proving more difficult to integrate than expected, and shareholders of Europe’s biggest exchange operator by market value are paying an early price.
/on.wsj.com/2WzjL8H

Eurex and Capitalab execute first compression in equity index derivatives; The new service will enable Eurex participants to reduce their open positions and lower the capital costs on equity derivatives.
Wesley Bray – The Trade
Capitalab and Eurex have joined forces to execute the first compression in equity index derivatives in Europe. Through the collaboration, Eurex becomes the first European exchange to support compression services in its listed equity index business, responding to the industry-wide challenge of high cost of underlying capital for trading derivatives.
/bit.ly/375bbAD

NYSE ArcaBook Hardware Upgrade – Weekend Testing Opportunity August 7, 2021
NYSE
As previously announced, on September 20, 2021, NYSE will upgrade the NYSE ArcaBook proprietary market data server. Please refer to NYSE Proprietary Data IP Addresses for new source IP and refresh/retransmission server information.
/bit.ly/3yeVbHU

NYSE Pillar Options Migration: Arca Options Pillar Cert, Proprietary Market Data Specifications, New Migration Resources
NYSE
NYSE Arca Options’ Pillar Certification environment (“Pillar Cert”) is available for testing and includes most outright, complex and risk control functionality, in addition to the below recently added items listed below.
/bit.ly/2VhzF6K

CME Globex Notices: July 26, 2021
CME Group
Critical System Updates
Petrol Index on Benchmark Administration Premium – This Week
CVOL Index on Benchmark Administration Premium – This Week
IP Address Change for CME CF Rates and Indexes MDP – August 14
CME Globex Performance Enhancements- August 22
iLink 3 FIXP Messaging Enhancements – September 26
/bit.ly/3ibyRJW

EBS Market Integration onto CME Globex
Subject to applicable regulatory approvals, EBS Market’s Central Limit Order Book and eFix Matching Service will launch on CME Globex. You will receive subsequent notices with additional details and actions required to support the EBS Market integration onto CME Globex.
Topics in this issue include:
Critical Information
EBS Disaster Recovery Information Available Now
Production Connectivity Options and Order Forms Available Now
Client Testing for EBS Market and eFix Matching Service on CME Globex Available Now
EBS Ai on CME Globex – Q3 2021
iLink 3 Cancel/Replace Request with In-Flight Mitigation
EBS Credit on CME Globex – Q4 2021
/bit.ly/2VjG8hw

CME STP Notices: July 29,2021
CME Group
CME STP
Enhancement to Trade Number in CME STP – September 19
CME STP FIX
Enhancement to Trade Number in CME STP FIX – September 19
CME STP and STP FIX
Market Data Trade Entry ID Field – September 26
Contacts
/bit.ly/3yd78y1

Notice of Disciplinary Action
CME Group
NON-MEMBER: Duong Duc Quang
CBOT RULE VIOLATIONS: 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: In accordance with the settlement offer, the Panel ordered Quang to pay a $10,000 fine and suspended Quang from all direct and indirect access to any designated contract market, derivatives clearing organization, or swap execution facility owned or controlled by CME Group Inc. for five business days. The suspension shall begin on July 28, 2021, and continue through and include August 3, 2021.
/bit.ly/378GlXK

Notice of Disciplinary Action
CME Group
NON-MEMBER:Nguyen Duc Dung
CBOT RULE VIOLATIONS: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: In accordance with the settlement offer, the Panel ordered Dung to pay a $10,000 fine and suspended Dung from all direct and indirect access to any designated contract market, derivatives clearing organization, or swap execution facility owned or controlled by CME Group Inc. for 10 business days. The suspension shall begin on July 28, 2021, and continue through and include August 10, 2021.
/bit.ly/3rOzlc8

Household investment in the Spanish Stock Exchange rose to 17.1% after a five-year decline
BME-X
Non-resident investors concentrate 49.9% of the market according to the data from the end of 2020, three-tenths less than the all-time high reached in 2019; The Bank of Spain anticipated a drop of six-tenths in non-resident participation at the end of April 2021 that could show the negative effects of the Financial Transaction Tax
Households increased their ownership of listed stock last year and foreign investors continue to own nearly 50%, according to the Annual Report on Ownership of Listed Stock in Spanish listed companies prepared by BME Research Department. This is the twenty-ninth year that this report has been published uninterruptedly.
/bit.ly/3ybTJWX

Fintech

The FinTech boom is changing the face of online payments
Forex Live
Online payments have become increasingly sophisticated in recent years, but it wasn’t until the pandemic struck that the entire FinTech arena started to explode with activity. They say necessity is the mother of invention, and it would appear that the old adage has been proven true over the past 18-24 months.
Online payment providers used to be a bridge between merchants and customers (or indeed two individuals), allowing one to send funds to the other. They have since evolved to embody a wide range of features that previously only banks and financial institutions had. This has been described as the FinTech revolution and is expected to continue long after restrictions are relaxed.
/bit.ly/3l9RvDY

Fintech must grab opportunity to entice over 50s
Finextra
Fintech firms have been missing a trick by largely ignoring the fastest growing and wealthiest demographic – the over 50s, says VC QED Investors.
The fintech sector has mostly focused on younger demographics, reasoning that they are more enthusiastic about adopting innovative digital products and services.
/bit.ly/2V1WSdp

Almost all buy-side firms use data science to opitimise performance, Northern Trust finds; A Northern Trust survey found that 98% of buy-side firms are using data science or planning to pursue it to optimise performance in the next two years.
Annabel Smith – The Trade
Almost all buy-side firms have their sights set on integrating data science into their investment processes in the next two years, a Northern Trust survey has found.
/bit.ly/3i9C9x6

Cybersecurity

U.S., U.K., and Australia Issue Joint Cybersecurity Advisory
FBI National Press Office
The Cybersecurity and Infrastructure Security Agency (CISA), Australian Cyber Security Centre (ACSC), United Kingdom’s National Cyber Security Centre (NCSC) and Federal Bureau of Investigation (FBI) released a joint cybersecurity advisory today, highlighting the top Common Vulnerabilities and Exposures (CVEs) routinely exploited by cyber actors in 2020 and those vulnerabilities being widely exploited thus far in 2021.
/bit.ly/3zKdx47

Fullstack Academy and Security Advisor Alliance Partner to Advance Nationwide Cybersecurity Education and Entry-Level Talent
Business Wire
The partnership kicks off with the creation of the Fullstack Cyber Advisory Board, consisting of senior professionals from Fullstack Academy, Security Advisor Alliance and leading organizations across the largest companies in the U.S., spanning multiple industries. The Board will focus on advancing Fullstack’s cybersecurity curriculum to uniquely qualify graduates for entry-level cybersecurity jobs, building the technical and soft skills that cyber employers seek in today’s evolving landscape.
/bwnews.pr/376macK

‘Death Kitty’ Ransomware Linked to Attack on South African Ports
Ryan Gallagher – Bloomberg
South Africa’s port and rail company appears to have been targeted with a strain of ransomware that cybersecurity experts have linked to a series of high-profile data breaches likely carried out by crime gangs from Eastern Europe and Russia.
/bloom.bg/3zR3JoL

Cyber Daily: Security Chiefs See Bigger Paychecks Amid Rise in Hacking Threats | Biden’s New Directive
Ryan Gallagher – Bloomberg
Corporate cyber chiefs’ salaries are growing amid an uptick in hacking threats and a dearth of experienced executives, WSJ Pro’s Catherine Stupp reports. Also today: Biden’s new directive on cyber safeguards for critical infrastructure; more details on the TSA’s pipeline rules; a tool for shaming hackable websites; and cyber startups going gangbusters.
/on.wsj.com/3jgXeVZ

What Enterprises Need to Know About Modern Ransomware Attacks and How to Respond
Scott Krantz – Illinois News Today
Ransomware is an escalating and evolving cybersecurity threat facing organizations around the world. By the end of the year, ransomware attacks had increased seven-fold by the end of the year, with more than 17,000 devices detecting ransomware daily.1 As an additional challenge, ransomware is more sophisticated than ever, with the latest variants designed to do tremendous damage and perpetrators demanding higher payments.
/bit.ly/3j4Lk1j

Cryptocurrencies

Bank of America Calls CBDCs ‘More Effective’ Than Cash in Research Note
James Rubin – Coindesk
Bank of America (BofA) called central bank digital currencies “a much more effective payment system than cash,” in a research paper published Wednesday. The Charlotte, N.C.-based bank, the second largest in the U.S. by total assets, said that CBDCs could “replace cash completely in the (distant) future.”
/yhoo.it/3i9pnPa

A New Bitcoin Mutual Fund Is Making It Easier to Invest in Crypto;ProFunds is offering the product at a time when firms are clamoring to create ways for clients to grab a piece of the once-obscure digital asset.
Claire Ballentine – Bloomberg
ProFunds, a Maryland-based firm, on Wednesday launched what it says is the first publicly available mutual fund correlated to the value of the largest cryptocurrency. The Bitcoin Strategy ProFund invests in Bitcoin futures contracts and aims for results that track the price of the digital currency — before fees.
/bloom.bg/3781HVi

State Street to Offer Crypto Services to Private-Fund Clients
Matthew Leising – Bloomberg
Move comes amid Wall Street’s growing digital-asset adoption; Company is partnering with Lukka for cryptocurrency services
State Street Corp. is set to offer cryptocurrency reporting, reconciliation and processing services to its private-fund clients in the latest sign that digital assets are gaining acceptance on Wall Street.
/bloom.bg/3l9O7ZK

China lays down challenge to the west on crypto; Governments and private sector must adopt more unified approach in response to Beijing
Mohamed El-Erian – FT
The time has come for more western governments to stop dismissing the crypto revolution as some mix of illicit payments schemes and reckless financial speculation. Instead, they should be more open to embracing the innovations of crypto and channelling them in a better direction for finance, the economy and society at large.
/on.ft.com/3f94vG5

First Bitcoin Mutual Fund (BTCFX) Makes It Easier to Invest in Largest Crypto
Claire Ballentine – Bloomberg
There’s a new way to invest in Bitcoin without actually buying any Bitcoin.
/bloom.bg/2V4KQjv

PayPal’s crypto ‘super app’ set to roll out soon
Cointelegraph
Payments provider company PayPal said its users may not have much longer to wait to have greater crypto functionality through the platform.
During PayPal’s Q2 2021 investor update call on Wednesday, CEO Dan Schulman said the initial version of the company’s super app wallet was “code complete.” The PayPal CEO said the company planned for the wallet to be fully ramped in the United States in the next several months.
/bit.ly/3zMkNw9

Where the smart money in crypto is going next: NFTs, blockchain and more
Rey Mashayekhi – Fortune
It wasn’t long ago that cryptocurrency investing could be (and often was) dismissed as “niche.” In the summer of 2016, the value of all the crypto in the world was barely $10 billion, and in the popular imagination the technology was associated as much with online drug dealing as with venture capital dealmaking. Today it’s a different world: Anyone can buy crypto using a Robinhood account; S&P 500 companies hold digital coins on their balance sheets; and Bitcoin at $30,000, a bullish pipe dream just a year ago, now counts as a serious slump. (The total value of the crypto market, meanwhile, hovered near $1.5 trillion in late July.)
/bit.ly/3zNHVdY

Why Ripple’s (XRP) SEC lawsuit could have a lasting impact on crypto
David H. Freedman – Fortune
Nine years ago a startup that would eventually be called Ripple Labs came onto the fintech scene with a promising plan to provide financial institutions with fast, low-cost clearance of trans-border money transfers. To make it happen, the company set up a network on which transactions sped across the globe in the form of a cryptocurrency called XRP, which Ripple specially created for the task.
/bit.ly/3zOKs7K

U.S. Marshals Service hires custodian to hold crypto seized in criminal activity
Tanaya Macheel – CNBC
The U.S. Marshals Service, one of the primary law enforcement agencies of the Department of Justice, has hired custodian Anchorage Digital for cryptocurrency seized or forfeited in various criminal cases.
The Marshals Service has spent more than a year seeking a custodian and financial services provider for its stockpile of seized crypto. The contract was previously awarded to BitGo, which was acquired in May by Galaxy Digital.
/cnb.cx/3faWi41

Politics

Analysis: Biden’s COVID-19 strategy thwarted by anti-vaxxers, Delta variant
Jeff Mason, Julie Steenhuysen – Reuters
When President Joe Biden entered office, his administration made clear it intended to fight the COVID-19 pandemic by focusing on getting the country vaccinated. With the Delta variant of the coronavirus now raging and a large chunk of Americans rejecting vaccines, that strategy is under scrutiny.
/reut.rs/3i8EGYv

McConnell aims to boost U.S. Republican vaccination rate by countering ‘bad advice’
David Morgan – Reuters
U.S. Senate Republican leader Mitch McConnell blamed misinformation for the low rates of COVID-19 vaccination among Americans, which are fueling a rise in coronavirus cases, particularly in Republican-dominated states.
/reut.rs/3i9hCIX

Biden to ask federal workers to get vaccinated or face testing -source
David Shepardson, Nandita Bose – Reuters
U.S. President Joe Biden is expected to announce on Thursday that all civilian federal workers will need to be vaccinated against the coronavirus or face regular testing, social distancing, mask requirements and travel limits, a source familiar with the matter said.
/reut.rs/3xf6hvg

U.S. expected to keep border expulsions policy as Delta variant cases surge
Ted Hesson – Reuters
The United States is expected to delay a partial rollback of a controversial migrant expulsion policy, according to three people familiar with the matter, citing fears related to the fast-spreading Delta variant of the coronavirus.
/reut.rs/3i8z5S0

The UK should not treat journalists like spies; A plan to defend ‘democratic processes’ falls at the first hurdle
The editorial board – FT
If news is something somebody does not want printed — all else being advertising — plans by the UK Home Office to clamp down on “unauthorised disclosures” through an overhaul of the Official Secrets Act present a threat to news as we know it. Good journalism, and by extension society, relies on leaks that expose abuses of power. Almost by definition, these disclosures are not authorised — be they over MPs’ expenses, the reasons for going to war, or a health secretary breaking his own lockdown restrictions.
/on.ft.com/3zMM95l

Washington’s Oil Lobby Pivoted on Climate Change—and Made No One Happy; The American Petroleum Institute’s green makeover has been met with skepticism from friends and foes alike
Timothy Puko and Ted Mann – WSJ
The American Petroleum Institute, Washington’s biggest lobby for the oil-and-gas industry, spent decades leveraging its financial muscle to fight almost every green initiative in its path. Then in March, the group signaled an about-face. It released its “Climate Action Framework,” a set of new policy prescriptions to lower emissions and support cleaner fuels.
/on.wsj.com/3iZ5TvS

Regulation

Court finds former superannuation trustee Tidswell Financial Services failed to act efficiently, honestly and fairly
ASIC
On 27 July 2021, the Federal Court made declarations that Tidswell Financial Services Ltd (Tidswell), failed to act efficiently, honestly and fairly when providing financial services.
/bit.ly/375tKof

SEC Charges Unlicensed Broker With Defrauding Investors
SEC
The Securities and Exchange Commission today charged Joshua L. Rupp of Michigan for engaging in securities fraud and for acting as an unregistered broker-dealer. The SEC’s complaint, filed in the U.S. District Court for the Western District of Michigan, alleges that Rupp engaged in a fraudulent investment scheme from January 2018 through July 2019 which included misstatements, false documents and misappropriation of investor funds. According to the complaint, Rupp raised over $2.2 million from about 20 investors who lacked significant investment experience by misrepresenting that he was a licensed securities professional, he would generate profits for investors by trading on their behalf, and investors’ principal was protected from losses. In addition, Rupp allegedly provided investors fake documents purporting to show he was associated with a licensed broker-dealer, and false account statements and trading data to make it appear that his trading on their behalf was generating as much as 115 percent increase in value.
/bit.ly/375ueuz

FCA proposing changes to streamline decision-making
UK FCA
The FCA is proposing changes to its decision-making process which will enable it to make faster and more effective decisions. This will help the FCA improve how it tackles firms and individuals who do not meet the required standards.
/bit.ly/2TLv3Wm

Trevor Milton, the Nikola founder, is charged with securities fraud.
Matthew Goldstein – NY Times
Federal prosecutors on Thursday filed securities fraud charges against Trevor Milton, the former chief executive of Nikola, an electric vehicle start-up, the most prominent case against an executive with a business that listed its shares on the stock exchange through a merger.
/nyti.ms/3rNUWBl

Securities Commission’s Audit Oversight Board Urges Auditors To Heighten Diligence and Professional Scepticism
MondoVisione The Securities Commission Malaysia’s Audit Oversight Board (AOB) today urged auditors to be more vigilant and diligent in the execution of their duties during the current period of economic uncertainties due to the Covid-19 pandemic.
/bit.ly/3i9tyKL

Investing and Trading

Opinion: Three arguments for, and three against, buying Robinhood shares once they start trading after the IPO
Michael Brush – MarketWatch
Here are the six key things you need to know if you are thinking about buying shares of Robinhood Markets Inc. The initial public offering priced Wednesday, and the shares start trading Thursday. Robinhood, which operates a popular securities-trading platform, priced the shares at $38 each, the low end of a range.
/on.mktw.net/3rGpXqJ

Robinhood, gateway to ‘meme’ stocks, raises $2.1 billion in IPO
Echo Wang and David French – Reuters
Robinhood Markets Inc, the owner of the trading app which emerged as the go-to destination for retail investors speculating on this year’s “meme’ stock trading frenzy, raised $2.1 billion in its initial public offering on Wednesday.
/yhoo.it/3rOnfQg

Not Even Jerome Powell Gets What’s Up With the Bond Market
Ye Xie and Christopher Anstey – Bloomberg
You’re in good company if you can’t figure out why U.S. Treasury yields are tumbling. Jerome Powell isn’t sure either. Bonds have relentlessly rallied for months, even as inflation spikes to 13-year highs. Textbooks and Wall Street lore say yields should be jumping instead of diving in the face of that.
/yhoo.it/3yoN4IQ

Money rolls in for Europe Inc as companies banish pandemic blues
Keith Weir – Reuters
Carmaker Volkswagen, plane maker Airbus and energy major Royal Dutch Shell all posted bumper financial earnings on Thursday reflecting a generally buoyant mood among European companies emerging from the coronavirus pandemic.
/yhoo.it/2THJY3P

Tencent Is World’s Worst Stock Bet With $170 Billion Wipeout
Bloomberg News
Tech giant is set to see its worst month ever after selloff; Nine of top 10 market value losers in July are Chinese firms
China’s unprecedented crackdown on its technology industry has turned Tencent Holdings Ltd. from a market darling into the world’s biggest stock loser this month. The Chinese Internet giant had tumbled 23% in July as of Wednesday, set for its worst month ever after erasing about $170 billion of market value. That marks the fastest evaporation of shareholder wealth worldwide during this period, Bloomberg data shows. Nine of the top 10 losers in shareholder value this month are Chinese companies, including Meituan and Alibaba Group Holding Ltd.
/bloom.bg/3yiN65m

Investors Shrug Off Regulators’ Leveraged Debt Bubble Warnings
Tatiana Darie – Bloomberg
ECB, BOE warn against increased risk-taking in leveraged debt; But bank strategists see few risks from junk market at record
To hear the central bankers tell it, leveraged-debt markets are overheating and could face tougher rules. For investors, there’s no bubble in sight and a fresh deal surge is on the way. As developed economies learn to live with the coronavirus, M&A activity and debt refinancings have accelerated, driving lending to indebted firms to a near-record in the year so far in Europe. Loan prices are back to pre-pandemic levels and junk-bond yields have tumbled as waves of stimulus and inflation fears push investors into higher-yielding riskier credits.
/bloom.bg/3rEx3w5

Profit bonanza from mines to main street on economic bounceback; Anglo American, Shell, Diageo and Airbus report bumper earnings despite shadow cast by Delta variant
Judith Evans – FT
The global economic bounceback from Covid-19 powered a bumper crop of corporate earnings on Thursday as commodity prices surged and consumers returned to spending money outside their homes.
/on.ft.com/3l89vhO

Spacs forced to fund deals with more expensive financing;Target companies are raising debt rather than equity to push transactions over the line
Ortenca Aliaj and Eric Platt, and Anna Nicolaou – FT
Blank cheque companies are turning to expensive sources of financing to push their deals over the line in a fresh sign of stress in what had been one of the hottest corners of Wall Street.
/on.ft.com/2Wn1sDp

Could Wall Street and Main Street join forces to short Robinhood post-IPO?
Lydia Moynihan – NY Post
Could Robinhood’s hotly anticipated IPO make it a short-selling target of both the hedge funds and the “Reddit Rally” retail crowd normally bent on destroying Wall Street? The word on the Street — and among some users of Reddit’s popular WallStreetBets chatroom — is yes.
/bit.ly/375igku

US ETF inflows surge past $500bn this year to eclipse 2020 record; Total assets reach $6.6tn as buoyant markets boost appeal of low-cost investment vehicles
Michael Mackenzie – FT
Investors have ploughed half a trillion dollars into US exchange traded funds in less than eight months, eclipsing last year’s record haul in the latest sign of how booming markets have sparked a rush into the low-cost vehicles.
/on.ft.com/2VdVapc

Environmental, Social and Corporate Governance

The Amazon Is Fast Approaching a Point of No Return; Brazil’s rainforest is being stolen and cleared at an accelerating pace, and the Bolsonaro government is fanning the flames.
Jessica Brice, Michael Smith – Bloomberg
In April, lawmakers in the Brazilian state of Rondônia gathered for a hasty vote in a squat cube of a building that had sat largely empty for months. Few places on Earth had been hit harder by Covid-19 than Porto Velho, the concrete capital city, which, like everything else in the region, has been carved out of the Amazon rainforest. But on that rainy afternoon, while the city was in lockdown, the legislators felt they couldn’t wait any longer.
/bloom.bg/3idhjx4

BlackRock Support Sought in Bid to End 5-Month Coal-Mine Strike
Fola Akinnibi – Bloomberg
Roughly 120 miners gather outside asset manager’s N.Y. offices; Workers want Warrior Met’s biggest shareholder to take action
Coal miners from states including Alabama and West Virginia picketed outside BlackRock Inc.’s New York headquarters Wednesday in a bid to get the world’s largest asset manager to pressure Warrior Met Coal Inc. for better wages and employee benefits.
/bloom.bg/2ViJv8y

More Money Than Ever Is Flowing Into Climate Tech; The question now is, where and how is that going to pay off?
Nathaniel Bullard – Bloomberg
On Tuesday, two alternative asset managers—TPG and Brookfield—closed a combined $12.4 billion in climate investment funds. That’s more committed in one day than used to be raised in years.
/bloom.bg/3xdDveq

Warming Planet Means 83 Million Face Death From Heat This Century; New study puts a cost on the mortality caused by climate change, which could lead to an increase in the price of carbon pollution
Jonathan Tirone – Bloomberg
A population equivalent to that of Germany — 83 million people — could be killed this century because of rising temperatures caused by greenhouse-gas emissions, according to a new study that might influence how markets price carbon pollution.
/bloom.bg/3rKboCO

Climate change ‘already being felt’ across UK, Met Office warns; Last year was the third warmest, fifth wettest and eighth sunniest on record
Camilla Hodgson – FT
Two of the UK’s three wettest days on record occurred in 2020, a year of dramatic storms and flooding as well as record temperatures, according to the Met Office’s annual analysis.
/on.ft.com/3lmVmxB

Institutions

Credit Suisse’s Archegos post mortem slams management; profit slumps
Brenna Hughes Neghaiwi – Reuters
A “lackadaisical” attitude towards risk and “a lack of accountability” were to blame for Credit Suisse’s $5.5 billion loss on investment fund Archegos, according to a review published on Thursday, as the bank reported a near-80% fall in second-quarter profit.
/yhoo.it/3ybGHZx

Credit Suisse hit by fallout from Archegos and Greensill scandals; Revenues and profits at the bank fall as it takes a more cautious approach to risk
Owen Walker – FT
The implosion of family office Archegos Capital continued to weigh on Credit Suisse’s results as the Swiss bank reported a 78 per cent fall in profits for the second quarter.
/on.ft.com/3zKwVOk

Lloyds restores dividend as profits rebound on sunnier outlook
Iain Withers, Lawrence White – Reuters
H1 pretax profit 3.9 billion pounds; Bank buys wealth platform Embark; Dividend restored as bad loan fears recede
Lloyds Banking Group (LLOY.L) swung to a first-half profit on Thursday and announced an interim dividend, boosted by a house-buying frenzy and improved economic outlook in Britain.
/reut.rs/3iaIp7R

Asset managers prepare for investor shift to bespoke equity portfolios; Vanguard, JPMorgan, BlackRock and Morgan Stanley have done deals to bolster their ‘direct indexing’ offerings
Michael Mackenzie and Billy Nauman and Chris Flood – FT
The biggest names in asset management are preparing for a major shift to an era in which investors demand customised equity portfolios that have traditionally been the preserve of wealthier clients.
/on.ft.com/2Wu2BJz

Carlyle’s Quarterly Earnings Jump on Strong Investment Performance; Growth in the value of the firm’s private-equity portfolio outpaces the broader market
Miriam Gottfried – WSJ
Carlyle Group Inc. CG 0.32% reported sharply higher second-quarter earnings as growth in the value of its private-equity portfolio outpaced the broader market. The Washington, D.C., buyout firm reported a second-quarter net income of $925 million, or $2.55 a share. That compares with net income of $145.9 million, or 41 cents, in the same period last year.
/on.wsj.com/3f8tFoc

Scathing report highlights internal failures relating to Archegos at Credit Suisse; The report found that the investment bank’s risk divisions continuously failed to address frequent exposure limit breaches by the family office.
Annabel Smith – The Trade
Credit Suisse has published a scathing report on its internal failures surrounding the Archegos scandal, after the collapse of the family office saw it lose over $5.5 billion. The Swiss investment bank was the most significantly hit following the implosion of Archegos, followed by Nomura which reported losses of nearly $3 billion.
/bit.ly/3yfl7mR

PGGM latest buy-side to join Glimpse Markets network ahead of launch; The start-up data pooling network has gained significant ground with the buy-side ahead of its launch later this year, offering a ‘data dividend’ to the users that contribute information.
Annabel Smith – The Trade
Dutch pension fund manager PGGM has become the latest major buy-side institution to join the data pooling network Glimpse Markets ahead of its launch later this year. The start-up network aims to increase the control buy-side firms have over their data and bring democratised transparency to the market via its data sharing platform.
/bit.ly/3rECUBz

Regions

China’s 18-Year Sentence for Farming Tycoon Sends Warning to Billionaires
Bloomberg News
Court hands businessman critical of government 18-year term; Xi Jinping has silenced government critics since taking power
China has sent a hog farming tycoon to 18 years in prison for a range of crimes, delivering another message to the financial elite of the world’s second-largest economy they will pay a heavy price for challenging the ruling Communist Party.
/bloom.bg/3rEJYho

China Injects Short-Term Cash After Crackdowns Spook Markets
Bloomberg News
PBOC adds 30 billion yuan with seven-day reverse repos; More liquidity was added to help market sentiment: Citic Sec
China’s central bank broke out of its usual pattern of daily liquidity operations, as it boosted a cash injection into the financial system, soothing market nerves frayed by regulatory crackdowns.
/bloom.bg/3j26j4M

Miscellaneous

Europe Soccer Market Shrinks After $4.4 Billion Covid Hit
Lucca De Paoli – Bloomberg
Revenue across big five leagues fell 11% in 2019/20 season; English Premier League to bounce back from Covid hit: Deloitte
The European soccer market contracted for the first time since the financial crisis in the 2019/2020 season, as the coronavirus pandemic disrupted some of the region’s biggest competitions. Revenue fell by 13%, or 3.7 billion euros ($4.4 billion), to 25.2 billion euros as matches were postponed or canceled amid social distancing measures, according to a report from Deloitte released Thursday. The pain was felt across Europe’s largest leagues, with the so-called “big five” seeing revenue decline 11% in the season.
/bloom.bg/3i9xCL2

Deepfakes threaten to inflate the ‘liar’s dividend’; A new AI-enhanced film about Anthony Bourdain reignites the debate about what constitutes artistic truth
John Thornhill – FT
When Werner Herzog filmed his documentary on Russian mysticism Bells From The Deep, he paid two Siberian drunks to lie on the ice on a lake and pretend to be pilgrims listening out for the chimes from the legendary lost city of Kitezh. The German director defended his artifice, distinguishing between the literal truth of accountants and the poetic truth of artists.
/on.ft.com/3l56j6F

Make a Call on Quitting Your Job Without Any Regrets; Plenty of workers want a fresh start now, but a new gig isn’t always the answer. Here are things to consider before firing off a farewell email.
Rachel Feintzeig – WSJ
It feels like everyone’s doing it. More than 7.5 million workers quit their jobs in April and May, up from 4.3 million during the same period the year before. Everyone’s talking about fresh starts. Burnout, the return-to-office mandate, boredom after a year of career stagnation: They can all seem like good enough reasons to send that farewell email. But is leaving your job right now the right call? How do you make a decision you won’t regret?
/on.wsj.com/3zOFdoA

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