Hits & Takes
John Lothian & JLN Staff
The Tokyo Commodity Exchange, or TOCOM, has issued a warning, “Beware of fake TOCOM website.” There are three fake websites that look like TOCOM’s, but are not. The REAL Tocom websites are:
– Japanese: https://www.tocom.or.jp/jp/
– English: https://www.tocom.or.jp/
– Chinese: https://www.jpx-tocom.com/
Cboe Global Markets reported its May 2021 trading volume, and highlights include options average daily volume, or ADV, up 15% over May 2020. Futures ADV was up 99% compared to a year ago, and trading in the IBIG futures, or Cboe® iBoxx® iShares® $ Investment Grade Corporate Bond Index, reached an all-time high. The Cboe global FX average daily notional value, or ADNV, was up 5% year over year. Cboe saw records in Cboe SEF NDF, or swap execution facility non-deliverable forwards, trading setting a new monthly record. Their European equities ADNV was up 28% over May 2020. U.S. equities ADV was up 6% over April 2021. — Cboe Global Markets
We have the first part of two videos of an interview with attorney and trader Sheldon Cohen for the Open Outcry Traders History Project. Sheldon has a great story to share.
There were no new donations to the JLN MarketsWiki Education GoFundMe campaign yesterday. Support our efforts to preserve industry history. We will build you a page on MarketsWiki and place a MWE donor badge on your page if you are a donor to our 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
Mavenwave’s Chuck Mackie has a recap of the Google Cloud Financial Services Summit 2021, which was produced on May 27, 2021. It includes reports on: Capital Markets: BNY Mellon Tackles AI and Digital Transformation; Payments: Pushing the Frontier with Global Payments; Insurance: Activating a Data Strategy with AXA Switzerland and QBE Insurance; Banking: Deutsche Bank Makes a Big Bet on Google Cloud; and Google Cloud: Partnering to Deliver Innovation. You can read it here.~SR
We recently mentioned Running4Oxygen, CrossTower‘s initiative to provide emergency help to victims of a second wave of COVID-19 in India. It’s a personal mission for the company’s co-founder and CEO, Kapil Rathi. “Pretty much everyone I know in India has been affected,” including family members, he told JLN in an interview last week. The fundraiser has picked up momentum and sponsors in recent days, and CrossTower has posted suggested routes for Running4Oxygen runs at the Bitcoin 2021 conference in Miami, which takes place today and Saturday. More information is available here. ~SC
Sheldon Cohen – Open Outcry Traders History Project – Part One
Attorney Sheldon Cohen started out his trading career as a risk manager for Goldberg Brothers, a CBOT clearing firm that was later sold to LIT Holdings, and eventually began trading at the Midwest Stock Exchange. He bought his own seat at the Chicago Board Options Exchange (CBOE) in 1976.
AMC Stock Sale Comes With Warning to Traders: Be Prepared to Lose It All
Katherine Greifeld and Vildana Hajric – Bloomberg
Company said entire investment may be lost in offering; It’s uncommon to see such a dire warning in stock sale
Investing in AMC Entertainment Holdings Inc. comes with the promise of free popcorn, special screenings — and the chance you’ll lose all your money. That last part is a warning the movie chain and its lawyers made in a regulatory filing on Thursday announcing its intention to sell more than 11 million shares to a market dominated by frenzied retail traders.
*****That should be in the template risk disclosure.~JJL
Beware of fake TOCOM website
A fake website has been found that looks like TOCOM’s website. TOCOM has no association whatsoever with these kinds of fake websites. If you access them, please beware there may be risk of damages. TOCOM website addresses are as follows:
****** Fraud comes in many different languages.~JJL
The Age of Reopening Anxiety; What if we’re scared to go back to normal life?
Anna Russell – The New Yorker
A woman nervously hides behind a tall wall of soup cans.
Cave syndrome is a spectrum, with queasiness at the thought of a grocery-store trip on one end and full-blown social withdrawal on the other.
Sometime during London’s third lockdown, when everything was still closed, I began watching the squirrels in the tree outside my window intently. There were two of them, and all winter they chased each other around the branches flirtatiously. By early spring, they had built a nest in the crook of the tree and, whenever one of them left, the other would poke its head out, concerned. Recently, I noticed three smaller heads peeking out—squirrel babies!—and not long after that, I began relaying the whole tale as an anecdote to friends in outdoor beer gardens, which had just reopened. Three of them! Can you believe it? Amazingly, they could. They smiled politely, waiting for a punchline that never came. There weren’t many follow-up questions.
***** I am not sure what normal life is, or what the new normal will be.~JJL
Masks have stopped disease spread for centuries. Here’s why they may catch on in the U.S.
Lindsey Bever – Washington Post
More than a year into a pandemic that has sickened tens of millions of people in the United States and killed more than 500,000, most people are eager to reclaim some semblance of their former lives.
*****If I wear a mask, it is not because I am not vaccinated. I am vaccinated. But I am also still very careful, because 90% or 95% is not 100%.~JJL
Thursday’s Top Three
The top clicked story Thursday was Pit Closures = Corn, Soybean Market Instability, Trader Says, from Successful Farming. Second was the Bloomberg opinion piece AMC and GameStop Frenzy Goes Beyond Casino Mentality. And third was a repeat from Wednesday’s top three, Four Ways to Keep Working From Home When the Boss Wants You Back, also from Bloomberg.
206,207,629 pages viewed; 25,987 pages; 233,027 edits
|CryptoMarketsWiki, our archive of the cryptocurrency and blockchain world, is going strong and keeping pace as this area of finance grows and evolves.Recently Updated Pages
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The IPO Club Might Finally Have You as a Member. Still Want In? Robinhood and SoFi are the latest to try to get small investors into IPOs. But historically it has been hard to share the benefits of early access widely.
Telis Demos – WSJ
Small investors seem more influential than ever these days. So as the initial public offering market heats up, efforts to get those investors a bigger seat at the table is a hot idea. It’s also not a new one. Upstart brokerages Robinhood Markets and SoFi Technologies recently said they would give their customers access to IPOs. They are among the latest firms to try to crack open one of Wall Street’s oldest clubs: those getting distribution of IPOs at the offering price, before shares begin trading.
SIX to consolidate Swiss and Spanish exchange trading platforms; Following the acquisition of Spain’s BME, SIX has outlined plans to integrate the Spanish market onto its existing trading platform.
Hayley McDowell – TheTrade
SIX has outlined plans to integrate the Bolsas y Mercados Españoles (BME) trading platform with its existing trading platform to form a full-integrated system, following its EUR2.8 billion acquisition of the Spanish stock exchange.
London Traders Rebelling Against EU Moves Pose Staffing Dilemma
Harry Wilson, Steven Arons, and Stefania Spezzati – Bloomberg
Group of London-based JPMorgan traders quit rather than move; Other banks face similar issues as they try to move staff
When JPMorgan Chase & Co. asked a team of about 15 London-based equity derivatives traders to move to Paris, it didn’t go down well. Almost half of them chose to quit, several to avoid relocating. Other global investment banks have faced similar issues. Goldman Sachs Group Inc. and Nomura Holdings Inc. have had a hard time convincing some traders to leave London, people familiar with the matter said, asking not to be identified discussing private matters.
SEC appoints new trading and markets acting director; New regulatory appointment will replace Christian Sabella, who served at the agency for the past 10 years.
Wesley Bray – The Trade
The US trading watchdog has confirmed the appointment of a new acting director of the division of trading and markets. David Saltiel takes on the new role at the Securities and Exchange Commission (SEC), replacing Christian Sabella, who concluded his tenure at the agency on 2 June.
China Starts a War on Commodity Prices Goldman Says It Can’t Win
Beijing is trying to rein in surging raw-materials costs; The crackdown could ripple through markets around the world
It sounds like a Mao-era relic of China’s planned economy: the Department of Price. But this rarely discussed corner of the Chinese bureaucracy is now playing an increasingly important role in the inflation debate that’s whipsawing financial markets around the world.
UK regulator warns on crypto industry’s anti-money laundering practices; FCA says many digital asset companies are falling short of its expectations
Joshua Oliver – FT
The UK’s financial watchdog has warned that a “high” number of crypto businesses are not meeting anti-money laundering standards, underscoring the gulf between regulators and many digital asset groups.
The Next Market Crash Looms Large in Fund Reform; Regulators are wrestling with how to make investment funds more resilient during times of turmoil. There’s no easy fix.
Mark Gilbert – Bloomberg
A slew of investment mishaps has reinforced how seemingly easy-to-trade securities can become petrified assets in a heartbeat. Nervous about the next market rout, regulators are wrestling with how to protect investors from getting trapped in frozen investment funds without throttling the market. They need to get a wiggle on. The problem is easy to identify, and incredibly hard to solve: How to impose sufficiently stringent liquidity rules on the various flavors of funds without crimping their ability to deliver returns.
UK derivatives market accelerates decline; The bulk of the quarterly reduction came from swaps held by UK banks with cross-border counterparties
Alessandro Aimone – Risk.net
The gross mark-to-market value of all derivatives contracts held by UK banks is at its lowest since end-2019, Bank of England data shows, after the fourth consecutive quarter of decline. As of end-March, the value of gross derivatives – assets plus liabilities – stood at £5.4 trillion ($7.7 trillion), down almost 16% on December. Over the past 12 months, these portfolios have shrunk 33%.
US unveils plan to donate millions of Covid vaccine doses globally; Biden administration to allocate 25m shots to South America, Africa, and south and south-east Asia
Kiran Stacey – FT
The US will donate millions of excess doses of Covid-19 vaccines from its stockpile to countries around the world in an attempt to help battle fresh outbreaks of the pandemic.
Fed casts doubt on future of Basel internal models in US; Banks warn Fed cannot keep commitment to avoid Basel III capital hike if it forbids models Bank for International Settlements, home to the Basel Committee on Banking Supervision
Sharon Thiruchelvam – Risk.net
A senior Federal Reserve official has cast doubt on the future of the internal models approaches (IMA) to calculating bank capital requirements, as the US prepares to implement the final elements of the Basel III framework later this year. “The banking agencies are discussing the fate of internal models in the future US bank capital framework,” Mark Van Der Weide, general counsel at the US Federal Reserve Board of Governors, told an industry conference on June 2.
A former head of macro strategy at legendary investment firm Citadel lays out the 5 key qualities he believes makes a great trader — and provides a rare outlook on the future of hedge funds
Kari McMahon – Insider
Securing a senior position at the top trading and investment firm often results in having to sign a non-compete clause, which means agreeing to stay out of the game for a set time period when switching jobs.
Shorter settlement cycles could hit non-US firms hard; As efforts continue to shorten the settlement cycle for US securities to T+1, market participants in Asia worry about the potential implications.
Wei-Shen Wong – Waters Technology
The Depository Trust & Clearing Corporation (DTCC), the Investment Company Institute (ICI), and the Securities Industry and Financial Markets Association (Sifma) are currently engaged in a joint effort to shrink the settlement cycle for US securities from T+2 to T+1. Moving to a shorter settlement cycle will entail a lot of preparation on the part of market participants—and there are fears that it could place additional burdens on firms outside the US.
Four Ways of Looking at Market Share; We take a quick look at how large, small and microcap companies contribute to the total market cap and liquidity that makes the U.S. markets the envy of the world.
Phil Mackintosh – Nasdaq
The U.S. stock market has more than 5,600 listed companies worth more than $58 trillion, and has traded almost 11 billion shares or $450 billion in notional value every day so far in 2021. The market includes a wide range of companies, from large established players to new, small, growth companies.
Crypto-Crash Aftershocks Hit Traders With 50% Premiums Vanishing
Justina Lee – Bloomberg
Bitcoin derivatives market signals caution across the board; Market excesses ease after last month’s $500 billion wipeout
Speculative investors may have been pushing meme stocks “to the moon” earlier this week, but their crypto counterparts have been coming back down to Earth en masse. Hedging activity is on the rise and bullish bets are finding limited demand — even with Bitcoin still almost 40% below its peak. These are rare times of restraint among day traders, who until last month’s $500 billion crash were famously in the throes of bullish mania.
Banks’ Transition Away from Libor Just Became Easier
John Hintze – BankingJournal.aba.com
The transition away from the London Interbank Offered Rate to a growing menu of replacement rates just got a whole lot easier for banks. Explaining the need to move away from Libor should be easy enough: The interbank-funding rates global banks submit to generate Libor have become too few to support a robust benchmark.
U.S. Chamber Welcomes Administration Announcement on Global Vaccine Distribution
U.S. Chamber of Commerce
Myron Brilliant, Executive Vice President and Head of International Affairs at the U.S. Chamber of Commerce, issued the following statement in response to the administration’s announcement on global vaccine distribution:
As vaccine delays grind on across Africa, the coronavirus surges.
Abdi Latif Dahir – NY Times
A sudden, sharp rise in coronavirus cases in many parts of Africa could amount to a continental third wave, the World Health Organization warned on Thursday, a portent of deeper trouble for a continent whose immunization drives have been crippled by shortfalls in funding and vaccine doses.
France Loosens Entry Rules for Vaccinated EU Travelers
Tara Patel and Phil Serafino – Bloomberg
Nations organized into three categories based on risk; Visitors from U.S., Canada and U.K. still need negative test
France will allow vaccinated travelers from the European Union to enter without showing negative Covid-19 tests starting June 9, a move designed to ease travel before the traditional summer holiday season.
U.K. Covid Infection Rate Rises as Johnson Weighs More Unlocking
Alex Morales and Emily Ashton – Bloomberg
Prime minister faces decision on June 21 plan to ease lockdown; Officials are waiting for vaccine data to assess variant risk
Covid infections are rising across much of the U.K., piling pressure on Prime Minister Boris Johnson as he weighs whether to delay plans to unlock the economy later this month.
U.K. Authorizes Pfizer Covid Vaccine for Use in Adolescents
Suzi Ring – Bloomberg
The U.K. drugs regulator authorized the Covid-19 vaccine from Pfizer Inc. and BioNTech SE for use in 12- to 15-year-olds as a number of countries move to inoculate children in a bid to end the pandemic.
Germany’s Vaccine Demand Set to Continue Outstripping Supply
Iain Rogers – Bloomberg
Health Minister still sees good prospects for rest of summer; Nation closing in on milestone of 50% receiving a first shot
Demand for Covid-19 vaccines in Germany will continue to outstrip supply for several more weeks as the country nears the milestone of administering a first shot to half the population, according to Health Minister Jens Spahn.
EU trade chief pushes for more Covid jab production not patent waivers; Dombrovskis argues EU approach offers ‘concrete’ path to speed global vaccine rollout and save lives
Jim Brunsden and Sam Fleming – FT
Europe’s trade chief has called for a rapid increase in global vaccine production as the best way to fight the pandemic, arguing ahead of crunch talks next week against a narrow focus on patent waivers that has been backed by the US.
Exchanges, OTC and Clearing
Cboe Global Markets Reports May 2021 Trading Volume
Cboe Global Markets
Options ADV up 15 percent over May 2020; Futures ADV up 99 percent over May 2020, with trading in IBIG futures reaching a new all-time high; Global FX ADNV up 5 percent over May 2020, with Cboe SEF NDF trading setting a new monthly record; European Equities ADNV up 28 percent over May 2020; U.S. Equities ADV up 6 percent over April 2021
Cboe Global Markets, Inc. (Cboe: CBOE), a market operator and global trading solutions provider, today reported May monthly trading volume statistics across its global business lines.
ABO-Group Environment lists on Euronext Paris; MARKET CAPITALISATION OF EUR68.2 MILLION
Euronext today congratulates ABO-Group Environment, an environmental engineering company which operates in the areas of geotechnology, soil remediation, energy and water and waste management, on its listing in Compartment C of Euronext’s regulated market in Paris (ticker code: ABO).
Eurex Exchange Readiness Newsflash | Updates June 2021
With this Newsflash, we would like to draw your attention to the upcoming publications, events and necessary actions for the ongoing initiatives:
New Single Stock Dividend Futures and inclusion of EnLight rebates; Introduction of 20 Single Stock Dividend Futures and inclusion in the existing LP scheme; Inclusion of EnLight rebates in FTSE® 100 Declared Dividend Index Futures LP Scheme.
ASX Group Monthly Activity Report – May 2021
TMX Group Consolidated Trading Statistics – May 2021
TMX Group Limited today announced May 2021 trading statistics for its marketplaces – Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange and Montréal Exchange.
TMX Group CEO John McKenzie to present at the Virtual Piper Sandler Global Exchange and FinTech Conference
TMX Group CEO John McKenzie will present at the Virtual Piper Sandler Global Exchange and FinTech Conference on Thursday, June 10, 2021 at 8:30 a.m. – 9:00 a.m. ET.
ICE Announces Record Activity in TTF and JKM Gas Complexes as They Evolve into Global Benchmarks; TTF Futures Open Interest +21% y/y; TTF Futures Volume +22% y/y; Number of participants trading TTF +83% since 2016; JKM Futures & Options OI +10% y/y; Volume +15% y/y
Intercontinental Exchange, Inc.
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, today announced record activity in the TTF natural gas (“TTF”) and JKM LNG (Platts) (“JKM LNG”) benchmarks, which work together to provide the market with a global reference price for gas.
Performance Bond Requirements: Agriculture Margins – Effective June 04, 2021
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.
June 2021 Stock, ETF, and Corporate Bond Advisory- Effective June 03, 2021
June 2021 Stock, ETF, and Corporate Bond updates are available on CME DataMine.
Performance Bond Requirements: Agriculture, Energy, Equity, Interest Rate, and Metal Margins – Effective June 04, 2021
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
New Product Summary: Initial Listing of the Options on E-mini Standard and Poor’s 500 Stock Price Index Futures – Quarterly PM (European-Style) Contract – Effective June 28, 2021
Initial Listing of the Options on E-mini Standard and Poor’s 500 Stock Price Index Futures – Quarterly PM (European-Style) Contract.
Moscow Exchange and Sberbank sign cooperation agreement
Moscow Exchange and Sberbank signed a cooperation agreement to jointly create new solutions to boost investor interest and improve exchange infrastructure. The official ceremony at the XXIV St. Petersburg International Economic Forum (SPIEF) was attended by Moscow Exchange CEO Yury Denisov and Sberbank Deputy Chairman Anatoly Popov.
Moscow Exchange and DOM.RF enter a memorandum to promote the mortgage-backed bond market
On 4 June 2021, Moscow Exchange and DOM.RF entered into a memorandum of cooperation in the development of the market for mortgage-backed bonds guaranteed by DOM.RF.mThe official signing ceremony took place at the St. Petersburg International Economic Forum (SPIEF) and was attended by Moscow Exchange CEO Yury Denisov and DOM.RF General Director Vitaly Mutko.
BISX New Trading Hours Trading Notice
SET provides Thai investors access to MSCI sustainability information
The Stock Exchange of Thailand (SET) in cooperation with MSCI, a leading provider of critical decision support tools and services for the global investment community, to publish Thai listed companies’ sustainability ratings for investors.
Sterling Trading Tech Names Antonio Manuel Abad OMS & Infrastructure Product Manager
Sterling Trading Tech
Sterling Trading Tech (STT), a leader in trading technology solutions for equities, equity options, futures, and digital asset trading, is pleased to announce the appointment of Antonio Manuel Abad as the OMS & Infrastructure Product Manager. Mr. Abad is a seasoned financial technology executive with broad technical expertise in the full stack of technologies and infrastructure actively driving the modern trading environment specializing in high-performance computing and cloud-based architectures.
Barchart Accelerates Digitization of US Agriculture with eSign for Grain Contracts
Barchart, a leading provider of data, tools, and software to America’s agribusinesses, furthers its support for US agriculture through the release of eSign – providing a completely digital workflow for grain contracting between grain buyers and producers.
Singapore’s Fintech Honcho Has Vision of Asian Silicon Valley
Joanna Ossinger and Chanyaporn Chanjaroen – Bloomberg
Fintech investments in the city-state have soared since 2014; Mohanty also discusses cross-border payments, cryptocurrencies
Singapore sees more investments pouring into financial technology firms this year as the city-state seeks to become a regional hub for capital raising in areas from payments to robo-advisory, according to a top central bank official. Such investments have risen from around $20 million in 2014 to a record $1.1 billion last year, and more is expected this year, Sopnendu Mohanty, the Monetary Authority of Singapore’s chief fintech officer, said in an interview.
Accelerating Innovation: Google Cloud Financial Services Summit 2021 Recap
Chuck Mackie – Mavenwave
Much has been written about the many ways in which public cloud is transforming the financial services and insurance industries, but it often seems that progress is slow in coming. The recent Financial Services Summit from Google Cloud should put that notion to rest. Great strides have been made in the past several years with some of the biggest names in capital markets, payments, insurance, and banking – and there are many more exciting developments on the horizon. Industry leaders like BNY Mellon, Global Payments, AXA Switzerland, QBE Insurance, and Deutsche Bank demonstrated that innovation is indeed accelerating in financial services and insurance.
Broadcom Gives Strong Forecast on Data Center Chips Demand
Ian King – Bloomberg
CEO says company isn’t letting customers hoard inventory; Internet service providers need chips to improve home access
Broadcom Inc., one of the world’s largest chipmakers, gave a bullish forecast for quarterly sales, boosted by demand for chips used in data centers and equipment needed to improve consumer home internet speeds.
All-or-Nothing Investment Websites Used Wirecard for Card Payments; The sites, which regulators have accused of stealing from clients, collected money over Wirecard’s network
Paul J. Davies – WSJ
More than half a dozen websites that securities regulators alleged stole money from novice investors in the U.S., Canada and elsewhere have one thing in common: They all used Wirecard AG, the German technology company that collapsed after an alleged multibillion dollar fraud of its own.
Data versus information: What does it take to get usable analysis to your traders?
We often hear in surveys and at conferences that ‘access to good data and analysis’ is the number one priority and challenge for many buy-side dealing desks.
JonesTrading information chief joins LiquidityBook as COO; Sayant Chatterjee from JonesTrading is the latest senior hire for trading platform provider LiquidityBook following record revenues in 2020.
Hayley McDowell – The Trade
The chief information officer at US equity broker-dealer JonesTrading has departed to join trading software provider LiquidityBook as its new operating chief. Sayant Chatterjee has been appointed chief operating officer at LiquidityBook after more than seven years with JonesTrading where he led product development initiatives across the brokerage’s business lines.
U.S. Looks Into Cryptocurrency’s Role in Ransomware Hacks; The White House is exploring possible ways to trace transactions that line hackers’ pockets
David Uberti and James Rundle – WSJ
The Biden administration is examining cryptocurrency’s role in recent hacks that have disrupted important U.S. industries including healthcare, fuel and food, exploring new ways to track victims’ payouts to foreign ransomware gangs. White House officials this week said they are pushing to better trace ransomware payments, which hackers demand to unlock companies’ data.
Rampant ransomware’s raised threat level
Chris Nuttall – FT
Ransomware’s pandemic proportions means some insurers are arguing governments will need to step in and provide a financial backstop.
“There is a need to find a way to cover the risk, which is too large for the insurance industry itself,” said Isabelle Santenac, global insurance leader at consultancy EY. “There will be a need to find some public-private partnerships to ensure that the risk is covered [and] to also work on how to limit the risk and prevent the risk.”
White House Warns Companies to Act Now on Ransomware Defenses; An open letter urged them to take many of the defensive steps that the federal government requires of its agencies and contractors.
David E. Sanger and Nicole Perlroth – NY Times
The White House warned American businesses on Thursday to take urgent security measures to protect against ransomware attacks, as hackers shift their tactics from stealing data to disrupting critical infrastructure.
Justice Department to prioritize ransomware attacks on same level as terrorism
Jeff Pegues – CBS News
The Department of Justice says it is so concerned about the “growing threat” that digital extortion poses nationwide that it will now handle ransomware investigations the same way it handles terrorism cases.
The way to stop companies from getting attacked by ransomware is simple: outlaw ransom payments
Josh Barro – Insider
This time it’s JBS, the Brazil-based meatpacking concern that produces nearly a quarter of the beef in the US. Before that, it was Colonial Pipeline. And before that, it was countless mid-size firms, hospital systems, and local government agencies. Foreign hackers keep encrypting the systems of US organizations, and demanding payment in exchange for decryption keys and promises not to publish stolen data.
Crypto-Crash Aftershocks Hit Traders With 50% Premiums Vanishing
Justina Lee – Bloomberg
Speculative investors may have been pushing meme stocks “to the moon” earlier this week, but their crypto counterparts have been coming back down to Earth en masse.
Hedging activity is on the rise and bullish bets are finding limited demand — even with Bitcoin still almost 40% below its peak. These are rare times of restraint among day traders, who until last month’s $500 billion crash were famously in the throes of bullish mania.
Elon Musk breaks up with bitcoin? Cryptic tweet has some crypto bulls fearing the worst.
Mark DeCambre – MarketWatch
Crypto bull Elon Musk on Thursday evening issued a cryptic tweet that many in the world of digital assets were interpreting as the billionaire’s breakup with bitcoin.
AMC: Crypto NFTs prevent people from lying about being a shareholder for perks
Robert Hackett – Fortune
AMC Entertainment is living up to its name as a great entertainer. Watching the stock chart is even more fun than sitting through an action-packed Hollywood blockbuster.
Swept up in the “meme stock” craze along with GameStop, Blackberry, and others, AMC is rallying like crazy. Its share price was recently up nearly 3,000% to more than $60 per share since the beginning of the year. (Today, the price dropped by a third to roughly $40 after the company said it would capitalize on the mania by issuing 11.5 million new shares. Then the stock rebounded close to $70 before settling near $50 by market close.)
Let the crypto price wars begin, as Robinhood touts ‘commission free’ trade vs. Coinbase rivals
Mark DeCambre – MarketWatch
Is a zero-commission war about to erupt in the crypto arena?
Robinhood Markets on Thursday may have delivered the first shot across the bow in the trading of virtual assets, highlighting that buying and selling assets like bitcoin carries no transaction fees on its venue, pointing to fees that exist at competitors Coinbase Global and Gemini and PayPal’s Venmo.
Why crypto tends to crash on the weekends
Jessica Matthews – Fortune
Cryptocurrencies don’t take any days off.
Digital currencies aren’t tied to any regulatory authority, and they freely trades outside standard hours for equity exchanges—giving investors the prerogative to buy or sell it whenever they please.
Royalty Exchange Launches NFT Catalog Sales; Program Begins With The First-Ever NFT For A Music Publishing Catalog
Royalty Exchange, the world’s largest platform for buying and selling royalties, today announced the launch of the first-ever music publishing NFT. Under this new program, investors can now buy music catalogs and songs as NFTs (“non-fungible tokens”) using the Ethereum cryptocurrency.
Warwick Capital Management Ltd. Launches as Bermuda-Based Digital Asset Investment Manager; Warwick forming out of principal trading and cryptocurrency market maker Hehmeyer LLC
Warwick Capital Management Ltd.,
Warwick Capital Management Ltd., a Bermuda-based investment manager of digital assets, today announced its formation and launch, spinning out of principal trading and market-making company Hehmeyer, LLC. Brian Tehako, formerly the head trader at Hehmeyer, will serve as Warwick’s Chief Investment Officer; Chris Hehmeyer, CEO of Hehmeyer, LLC, will serve as Chairman of Warwick Capital’s board
India Central Bank Reiterates Major Concerns Over Crypto Trading
Suvashree Ghosh – Bloomberg
Governor said RBI position hasn’t changed on digital assets; RBI this week told banks to set aside a 2018 ban on the trades
The Reserve Bank of India reiterated its concerns over cryptocurrencies, clarifying its stance on digital assets just days after the regulator told banks to set aside a 2018 ban on trading.
Crypto investor Vignesh Sundaresan: ‘It’s the NFT that changed the world’; The entrepreneur on spending $69m on a non-fungible token artwork — and how an avatar helped him circumvent the status quo
Stefania Palma – FT
It was almost a decade ago that Vignesh Sundaresan, googling for ways to transfer funds directly between stock brokerage accounts, chanced on an alternative to the conventional banking system. “I was like, can I just move money between two parties? And then bitcoin came up randomly on a forum,” the 32-year-old entrepreneur recalls.
Opinion: Everyone you know is talking about crypto. Uh oh
Paul R. La Monica – CNN
“What do you think about bitcoin?”
This is often the first question I’m asked by friends and family members whenever I bring up my job. And any time I introduce myself to someone new and tell them what I do, the conversation quickly turns to cryptocurrencies, especially Tesla (TSLA) CEO Elon Musk and his obsession with dogecoin.
Washington to bar US investors from 59 Chinese companies; Effort designed to stop Beijing using American capital to undermine national security
Demetri Sevastopulo – FT
The Biden administration is banning Americans from investing in dozens of Chinese defence and surveillance technology companies in an effort to stop US capital from being used by China to undermine national security.
Biden Expands Blacklist of Chinese Companies Banned From U.S. Investment; Move shows Biden’s willingness to continue some of the hard-line China policies from the Trump administration
Gordon Lubold and Alex Leary – WSJ
President Biden expanded a prohibition on Americans investing in Chinese companies with purported links to China’s military, adding more businesses to a blacklist that has angered Beijing and caused consternation among investors.
Opening Statement of Acting Chairman Rostin Behnam before the Energy and Environmental Markets Advisory Committee
Good morning and welcome to the CFTC’s Energy and Environmental Markets Advisory Committee (EEMAC or Committee) meeting. I want to thank Commissioner Berkovitz for his leadership, and extend a special thanks to Abigail Knauff who serves as the EEMAC’s Secretary, and to Dena Wiggins who serves as the EEMAC’s chairwoman. I also want to thank and acknowledge the EEMAC members and invited speakers, including our very own CFTC staff, who will participate on the panels today. And of course, a special thanks to the all the CFTC staff who help us bring these meetings together.
Regulators expect Australian institutions to cease the use of LIBOR in new contracts before the end of 2021
Regulators in Australia are reiterating the importance of ensuring a timely transition away from the London Interbank Offered Rate (LIBOR). This requires ceasing the use of LIBOR in new contracts before the end of 2021.
ASIC disqualifies director from managing companies for trading while insolvent
Grant Evan Donley of Sydney, NSW has been disqualified from managing companies for two years for his role in the failure of three companies and trading while insolvent.
Reminder: Disclosure and Reporting Requirements for NFA Members engaging in virtual currency activities
Given the recent volatility in the virtual currency market, NFA reminds Members engaging in virtual currency activities that they must fulfill certain ongoing disclosure and reporting requirements.
Opening Statement of Commissioner Dan M. Berkovitz before the Energy and Environmental Markets Advisory Committee
Good morning, and welcome to the Energy and Environmental Markets Advisory Committee (EEMAC). I am pleased that we are able to conduct this meeting by video today, and look forward to when the Committee can meet in person again.
Swiss Banker on Trial With Alleged $2.2 Million Insider Trader
Hugo Miller – Bloomberg
Businessman allegedly fed banker tips and traded on the stocks; Ex-banker at Lazard is accused of commercial espionage
A Swiss businessman faces a trial Monday accused of leaking company secrets to a former Lazard banker and then trading off the information in a case that has embroiled two companies that are mainstays of Swiss industry. Hans Ziegler is accused of exploiting his role as a director of pump-making conglomerate Oerlikon Corp. and steel producer Schmolz & Bickenbach to feed commercially-sensitive information to the banker for over three years until he was found out in late 2016. Ziegler passed 19 valuable chunks of data on to the banker, who can only be named as B. under Swiss reporting restrictions.
David Saltiel Named SEC Acting Director of Trading and Markets; Christian Sabella Departs the Agency
The Securities and Exchange Commission today announced that it has named David Saltiel as Acting Director of the Division of Trading and Markets. Mr. Saltiel replaces Christian R. Sabella, who concluded his tenure at the agency on June 2. “I look forward to continuing to work with David and thank him for lending his knowledge and experience as Acting Director,” said SEC Chair Gary Gensler. “I thank Christian for his dedication and service to the SEC over the last 10 years.”
Putting the Electric Cart before the Horse: Addressing Inevitable Costs of a New ESG Disclosure Regime
Commissioner Elad L. Roisman – SEC
Thank you to Dan [Bigman] and the Corporate Board Member for inviting me to participate in today’s ESG Board Forum. Of course, the views I express here are my own and do not necessarily represent those of my fellow Commissioners.
Federal Court Orders Florida Man to Pay More than $500,000 for Attempting to Fraudulently Profit From COVID-19; CFTC Wins Its First Enforcement Action Targeting Misconduct Directly Tied to COVID-19
June 03, 2021
The Commodity Futures Trading Commission today announced that the U.S. District Court for the Western District of Texas entered an order granting the CFTC’s motion for default judgment against defendant James Frederick Walsh of Boca Raton, Florida. The order finds that Walsh failed to answer the CFTC’s complaint charging him with fraud and failure to register with the CFTC. Walsh’s fraudulent solicitations include falsely claiming to generate increased forex trading profits as a result of the COVID-19 pandemic. This was the first enforcement action brought by the CFTC alleging misconduct tied directly to the COVID-19 pandemic.
Investing and Trading
Energy transition spurs hiring spree in metals trading
Devika Krishna Kumar, Julia Payne – Reuters
Trafigura, Gunvor Group and Bluecrest Capital Management have hired traders as they seek to profit from an infrastructure boom spurred by the global energy transition, six sources with direct knowledge of the matter said.
Millennials Are Running Out of Time to Build Wealth; The oldest members of the generation turn 40 this year. They’re only 80% as wealthy as their parents were at this age.
Olivia Rockeman and Catarina Saraiva – Bloomberg
In almost every way measurable, millennials in the U.S. at 40 are doing worse financially than the generations that came before them. Fewer millennials own homes than their parents did at their age. They have more debt — especially student debt. They simply aren’t as wealthy.
How the virus disrupted inflation statistics; Pandemic-driven changes in consumption patterns alter official pace of price growth
Brooke Fox and Valentina Romei and Oliver Elliott – FT
The pandemic’s seismic economic disruption has suddenly and radically changed consumers’ spending patterns around the world, leaving official inflation data unmoored from what they are experiencing.
Foreign investors buy UK government debt at record rate; Receding fears over Brexit and sub-zero yields elsewhere have lured investors to gilts
Tommy Stubbington – FT
Foreign investors bought a record-breaking volume of UK government debt over the past year, helping to fund the unprecedented levels of borrowing during the Covid-19 pandemic.
Environmental, Social and Corporate Governance
First Danish Climate Lawsuit Targets EU’s Biggest Pork Producer
Frances Schwartzkopff – Bloomberg
Denmark is facing its first climate lawsuit as activists add to the list of countries being dragged to the courts in an effort to protect the environment.
What a Dutch Court Ruling Means for Shell and Big Oil
Diederik Baazil and Laura Millan Lombrana – Bloomberg
Climate lawyers are preparing to take on more fossil-fuel companies after a Dutch court ordered Royal Dutch Shell Plc to cut its emissions faster than planned, on the grounds that the oil giant is violating human rights by contributing to global warming. It was a turning point for climate court cases, which boomed after the Paris Agreement on global warming was reached in 2015. Initially, many cases challenged governments’ plans, but litigators are increasingly targeting companies.
Central Banks Finally Grasp the Need for Daring Climate Action; Officials have so far mostly stuck to traditional measures such as mandating risk disclosures, but things are slowly changing.
Kate Mackenzie – Bloomberg
If there’s any topic that might get staid central bankers to feel justified in ditching their carefully calibrated language, it would be a conference on global warming. Almost all of them agree it’s a grave problem.
Biodiversity Disclosures Set to Become Part of Company Reporting; Taskforce backed by French President Emmanuel Macron presses financial-services and other industries to more closely assess their nature-related risks.
Alastair Marsh – Bloomberg
A global initiative aimed at measuring the impact that financial institutions and corporations are having on the natural world, which received an endorsement from French President Emmanuel Macron, is officially underway.
Rare wild flower holds up US lithium mine; Environment agency seeks to protect Tiehm’s Buckwheat, a plant found only in western Nevada
Henry Sanderson – FT
US domestic production of lithium, a key electric car battery material, hit a new hurdle this week after a government order to protect a rare flower that grows in Nevada.
UBS, Credit Suisse Need to Increase Liquidity, Switzerland Says
Marion Halftermeyer – Bloomberg
The Swiss government said that existing liquidity requirements for the country’s systemically important banks, including UBS Group AG and Credit Suisse Group AG, are not enough.
Deutsche’s DWS, Generali Said to Vie for NN’s Asset Manager
Jan-Henrik Foerster, Sonia Sirletti and Lucca De Paoli – Bloomberg
Business also attracts initial interest from UBS, Allianz; NN Investment Partners has 300 billion euros under management
DWS Group and Assicurazioni Generali SpA are among suitors that submitted initial bids this week for the asset management arm of NN Group NV, people familiar with the matter said.
HSBC Plans to Split Oversight of Asia Between Two Co-Heads
Ambereen Choudhury, Donal Griffin and Harry Wilson – Bloomberg
Plans to name David Liao and Surendra Rosha as Asia co-heads; Lender has earmarked Asia as a market for investment
HSBC Holdings Plc plans to split the job of overseeing its key Asian business as the bank’s regional boss Peter Wong prepares to step down from the role. Europe’s largest lender plans to appoint Wong’s protege, David Liao, and the chief executive of its Indian business, Surendra Rosha, as joint heads of its Asian arm this year, people familiar with the matter said, asking not to be identified as details are private. Liao is likely to manage Greater China, while Rosha will oversee the rest of the region, one person said.
U.K. Companies Hire the Most in 23 Years After Lockdown Loosens
Marc Daniel Davies – Bloomberg
KPMG and Adzuna data show strength in the labor market; Figures will feed debate at Bank of England on stimulus
U.K. companies are on a hiring spree after the government relaxed lockdown rules, employing permanent staff at the fastest pace in 23 years and advertising the most vacancies in three years.
Russians Seeking Bargains Have Discounter Eyeing IPO
Jake Rudnitsky – Bloomberg
Familia hires Morgan Stanley, Goldman prepare for share sale; Russian off-price chain may hold IPO in New York in early 2022
Russia’s biggest off-price fashion store is considering an initial public offering after a record listing by Fix Price Group Ltd., as local discounters thrive during a seven-year slump in incomes.
China Tech Crackdown Cycle Nearing an End, Top Investor Says
Livia Yap and Jeanny Yu – Bloomberg
Fidelity’s Jie says Alibaba, Tencent valuations are attractive; Tencent, Alibaba and Meituan remain in her top 10 holdings
Beijing’s antitrust crackdown on homegrown tech giants may be coming to an end, leaving stock valuations of some of the major firms at attractive levels. That’s the view of Hyomi Jie at Fidelity International Ltd., whose China consumer equity funds oversee $7.3 billion in assets. One has beaten 96% of peers in the past year. Hong Kong-based Jie sold some of her holdings in Alibaba Group Holding Ltd. and Tencent Holdings Ltd. earlier in the year, though they remain among her largest positions.
Russia’s Nordgold prepares for London IPO; Latest gold miner to choose UK capital for listing as metal’s price rallies
Henry Sanderson – FT
Russian gold miner Nordgold plans to list in London as it looks to take advantage of a rebound in the gold price. The company intends to sell a 25 per cent stake to investors, including via a secondary listing in Moscow, said people familiar with the company. It is set to file a registration document this week.
The Bottom 90% of Americans Are Borrowing From the Top 1%
Peter Coy – Bloomberg
We know three things about the U.S. economy: The rich are getting richer, everyone else is in debt, and interest rates have fallen. Is there a connection? Yes, and the link has implications for fiscal and monetary policy.
By forcing interest rates down, extreme wealth inequality pushes the U.S. economy toward a “debt trap” that’s hard to escape with conventional macroeconomic tools, write Atif Mian of Princeton, Ludwig Straub of Harvard, and Amir Sufi of the University of Chicago in an important paper that came out earlier this year, titled “Indebted Demand.” They advocate unconventional measures such as redistributive tax policies that narrow the gap between rich and poor.