The Metals for Your EV Are Stuck in a 30-Mile Traffic Jam

Nov 4, 2022

First Read

Hits & Takes
John Lothian & JLN Staff

I am on the road on a trip to Florida to prepare some real estate for sale. We are getting ready for FIA EXPO and starting to fill up our video interview schedule. We have several technology executives, a couple of exchange executives and one CFTC commissioner scheduled so far. We also have a musician named Clive with a thing for commodity hedging scheduled. If you have something new and interesting to tell the world, contact us about an interview.

I am sensing some real excitement from people about EXPO and seeing people again in Chicago. If you have not signed up, maybe it is time to do so.

For college students, the U.S Securities and Exchange Commission (SEC) is launching the SEC Scholars Program in the Summer 2023. It is a 10-week paid internship program beginning June 5, 2023 and concluding August 11, 2023. The application period is October 31, 2022 to November 18, 2022. If you want to apply for a regional law office, click HERE or the headquarters law office, click HERE.

The SEC Division of Economic and Risk Analysis seeks to hire two financial economists. They are looking for an SEC Fellow (Economist) and a Financial Economist.

The SEC Division of Corporation Finance is seeking to hire a senior officer-associate director (specialized policy and disclosure) located in Washington, DC.

Andrew Jennings is starting a new position as EMEA Director at BornTec.

Our friends at Wedbush Securities are raising money for Covenant House Illinois with the Sleep Out fundraiser. You can join me in supporting them by clicking HERE.

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 27th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 27) in Sharm El-Sheikh, Egypt, begins in two days on November 6 and runs through November 18. The United Nations Environment Programme Finance Initiative (UNEP FI) is participating with a series of events highlighting the role of private finance in building resilience to the physical impact of climate change and showcasing work being done across the climate adaptation finance landscape. UNEP FI is a large network of banks, insurers and investors that are spurring action across the financial system to deliver more sustainable global economies. You can see the event lineup, register, and sign up for live-stream coverage here. ~SAED

HKEX is holding a hybrid webinar, “ESG Academy: Decarbonization Along the Value Chain,” on Thursday, Nov. 17, from 2:30 to 4:00 p.m. (HKT). Learn how supply-chain emissions can account for a sizeable portion of a company’s total footprint. The webinar is part of HKEX’s commitment to supporting the business community’s transition to net-zero. You can learn more and register here. ~SAED

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Listen to ICE’s Caterina Caramaschi, VP of Financial Derivatives, discuss the breadth of the FTSE equity derivatives complex and the upcoming launch of ICE FTSE 100 Index Total Return Futures – a more flexible way to trade equity repo.

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MWE SHORT: Karen Wuertz – Opportunity Behind Many Doors
JohnLothianNews.com

The futures markets are about two things – price discovery and risk transfer. But all businesses that attract capital also attract a small number of less-than-scrupulous participants, or “bad apples,” as Karen Wuertz, SVP of strategy and communications at the National Futures Association calls them in this MarketsWiki Education, Chicago 2016 presentation. Wuertz says the NFA, in its continuing mission to ensure market integrity and protect customers, is always on the lookout both for irregular market behavior and for fresh talent to help the self-regulatory organization achieve its goals.

Watch the video »

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Twitter Advertiser Pause Widens as General Mills Taps the Brakes
Molly Schuetz – Bloomberg
General Mills Inc., said it’s temporarily pausing advertising on Twitter, joining Pfizer Inc., Volkswagen AG’s Audi and other brands rethinking their presence on the platform now that Elon Musk has taken over and is making his mark on the social media company. “We have paused advertising on Twitter,” said Kelsey Roemhildt, a spokesperson for General Mills. “As always, we will continue to monitor this new direction and evaluate our marketing spend.”
/jlne.ws/3hfeugY

****** I understood the other GM as they compete with Tesla. But given the chaos at Twitter right now, I guess this pause thing makes sense.~JJL

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Cboe Plans to Launch Trading in Mini S&P 500 Index (XSP) Options during Global Trading Hours, Beginning December 11; Enables customers to trade Mini S&P 500 Index (XSP) options nearly 24 hours, five days a week; Adds to Cboe’s existing offering of SPX options and VIX options and futures during Global Trading Hours (GTH); Ability to harness the cash-settled, smaller-sized S&P 500 index options during GTH will help enable traders to adjust positions around the clock with even greater precision and flexibility
Cboe Global Markets, Inc.
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced plans to launch trading in Mini S&P 500 Index (XSP) options during global trading hours (GTH), which will make the product available to customers nearly 24 hours every business day on Cboe Options Exchange, beginning December 11, 2022.
/jlne.ws/3DJ7Gjg

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Apple now valued at more than Amazon, Alphabet and Meta – combined
Emily Bary – MarketWatch
Apple Inc. shares have held up far better than those of its Big Tech peers over the past month, and that’s helped the company to a staggering feat: The smartphone giant is now worth more than Alphabet Inc., Amazon.com Inc. and Meta Platforms Inc. combined.
/jlne.ws/3UsU7eb

*****Given how much Apple technology I have and use, I am not surprised.~JJL

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El Salvador’s $300 Million Bitcoin ‘Revolution’ Is Failing Miserably; President Nayib Bukele tied his country’s fortunes to the digital token, but there isn’t much sign of it. Easier to find: Mass arrests and soldiers with machine guns.
Zeke Faux – Bloomberg
On an estuary along the coast of El Salvador, a few miles west of the Conchagua volcano, about 70 families live in a settlement called Flor de Mangle. It’s named for a mangrove forest where residents pluck oysters and crabs by hand from the brackish water. The first group of inhabitants came about 20 years ago, some of them former soldiers and guerrillas displaced by a brutal civil war. Harvesting shellfish, herding cattle and growing mangoes and corn, they earned enough to raise families and build houses, first of tin and wood, then of concrete.
/jlne.ws/3NBz1s2

****** There are good ideas and then there are ideas like this.~JJL

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Thursday’s Top Three
Thursday was award winners’ day. Our most read story Thursday was The Trade’s Louisa Paul accepts Lifetime Achievement Award at Leaders in Trading 2022. Second was Cboe Europe’s LinkedIn post announcing the group won awards for Outstanding Exchange Group and Outstanding Dark Trading Venue at the Leaders in Trading 2022. And third was Dr Robert Barnes is voted The TRADE’s first Industry Person of the Year, from The Trade News. Congratulations to all the award winners!

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MarketsWiki Stats
27,062 pages; 241,572 edits
MarketsWiki Statistics

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Lead Stories

The Metals for Your EV Are Stuck in a 30-Mile Traffic Jam; A slow and bumpy journey on the trail of Africa’s copper.
Matthew Hill – Bloomberg
In order to get a truckload of copper out of Africa and into the hands of tech-hungry buyers, Chanda Kulungika must spend a week sitting in one of the world’s longest traffic jams. Young men weave through the 30-mile (about 50 kilometers) queue pushing crudely built bicycles stacked with soft drinks, snacks and charcoal. At night, Kulungika sleeps in the cabin of his truck with one eye open, periodically flashing his hazard lights to check for lurking thieves who might steal his fuel or the valuable minerals he’s transporting.
/jlne.ws/3t00Xwe

Europe’s Top Bankers Are Pressing Their Regulator to Back Off; SocGen’s Bini Smaghi writes to ECB over board meeting requests; Bankers chafing at fresh dividend warnings after pandemic ban
Sonia Sirletti, Nicholas Comfort, and Steven Arons – Bloomberg
European bank executives are expressing increasing frustration with what they see as excessive interference and unreasonable demands from the region’s top financial regulator. Bankers are now becoming more vociferous about a raft of long-held irritations with the European Central Bank’s oversight arm, led by Andrea Enria. These include more day-to-day gripes, such as burdensome data demands, but also more significant debates over lenders’ freedom to pay out dividends and bonuses as well as the level of intrusion that supervision warrants, according to executives familiar with the matter.
/jlne.ws/3ftyHz6

MSCI affirms Hong Kong as ‘absolutely right partner’ for China access after ending licensing deal with Singapore Exchange
South China Morning Post
Almost two years after ending an agreement with Singapore, MSCI Inc has affirmed its decision to work with Hong Kong in creating equity derivative products that would allow investors to hedge risks in mainland China, the region’s biggest capital market, a senior executive said. “Hong Kong has become a major intermediary for mainland financial assets,” said Baer Pettit, president and chief operating officer of the New York-based global index provider. It is “absolutely the right partner for us related to the Greater China opportunity.”
/jlne.ws/3NDRnIP

Bloomberg equity derivatives specialist joins Cboe Global Markets as head of European derivatives; Incoming head brings considerable experience to the role, having previously served at Bloomberg and Liquid Capital Group.
Wesley Bray – The Trade
Cboe Global Markets has named Iouri Saroukhanov as its new head of European derivatives. Saroukhanov joins Cboe Global Markets from Bloomberg, where he served as equity derivatives specialist over the last six months. Prior to Bloomberg, Saroukhanov spent nearly 16 years at Liquid Capital Group, most recently as senior trader on the Euro STOXX 50 derivatives desk.
/jlne.ws/3sWfFnU

UK Wind Farms Generate Record Electricity as Temperature Dips; Britain’s wind power generation hit an all-time high Wednesday; Wind power will be critical to energy security this winter
Will Mathis – Bloomberg
Britain’s wind farms produced a record amount of electricity, cutting demand for natural gas just as the temperatures start to drop heading into winter. Strong wind speeds have combined with above-average temperatures this fall to help ease Britain’s reliance on fossil fuels to produce electricity. Weather will be more critical than ever this winter as Europe faces a reduction in natural gas supplies following cuts of Russian supplies after the invasion of Ukraine.
/jlne.ws/3T3numw

Wealthy families are migrating to the U.S. South and UBS is following them
Lananh Nguyen – Reuters
UBS is reshuffling its U.S. wealth leadership to focus on southern states that are crucial to the division’s growth as affluent families increasingly migrate to Florida and Texas, the company said on Thursday. The new structure for the world’s largest wealth manager signals a big push into the southern United States alongside competitors such as Merrill Lynch Wealth Management, which has boosted its presence in Florida.
/jlne.ws/3FHPjxF

UK Parliament Group Starts NFT Inquiry as Crypto Scrutiny Grows
Tanzeel Akhtar – BloombergThe UK parliament started an inquiry into nonfungible tokens, the digital collectibles for which Prime Minister Rishi Sunak has been a champion. The Digital, Culture, Media & Sport committee in the House of Commons announced the initiative in a statement on Friday, adding that it will also study the wider blockchain technology that underpins NFTs. “MPs are expected to consider whether NFT investors, especially vulnerable speculators, are put at risk by the market,” the DCMS committee said in the statement. “The inquiry may also look into the wider benefits that NFTs and the blockchain could provide the UK economy.”
/jlne.ws/3FLOpAa

Goldman Teams With MSCI and Coin Metrics to Create Digital Asset Classification System
Michael Bellusci – CoinDesk
Investment bank Goldman Sachs (GS) has partnered with MSCI and Coin Metrics to launch a new digital asset classification system to better track coins and tokens to help investors and industry participants monitor the space. Dubbed datonomy, crypto market participants will be able to track trends in different segments of crypto including smart contract platforms and decentralized finance (DeFi), and also screen various assets.
/jlne.ws/3DXN7Rl

OKX Expands to the Bahamas With New Registration and Regional Office
Tracy Wang – CoinDesk
Crypto exchange OKX has registered as a Digital Asset Business in the Bahamas and formed a subsidiary, OKX Bahamas, the company said Thursday. OKX Bahamas also opened an office in Nassau and plans to hire for 100 positions. The new Bahamian subsidiary will be headed by Jillian Bethel. The registration comes months after the country passed the Digital Assets and Registered Exchanges (DARE) Act, which opened the door for crypto businesses to operate in the Bahamas.
/jlne.ws/3FGWWV2

Canadian Energy Provider Hydro-Quebec Proposes Stopping Electricity Supply to Blockchain Industry
Aoyon Ashraf – CoinDesk
Hydro-Quebec, the energy supplier of the province of Quebec in Canada, proposed to stop providing electricity to the blockchain industry to battle growing power demand, the utility company said in a new proposal. The plan doesn’t explicitly mention what type of blockchain industry they are targeting. but the Canadian province has been an ideal place for crypto miners to setup due to its abundant sources of clean, renewable energy. There had already been talks among the miners in Quebec that current rules are too restrictive to grow their operations in there. This new proposal could make it even more restrictive for the miners to operate in the province.
/jlne.ws/3sZvLxa

HSBC investor Ping An publicly calls for break-up and ‘aggressive’ cost cuts; China’s biggest insurer says bank lacks Asia experience on board
Emma Dunkley – Financial Times
For the first time, HSBC’s largest shareholder Ping An has publicly called on the bank to spin off its Asian business and urged the global lender to be “much more aggressive” in reducing costs by cutting jobs. Michael Huang, chair of Ping An Asset Management, told the Financial Times: “We will support any initiatives including a spin-off that are conducive to improve HSBC’s performance and value.” He added that it was “urgent” that HSBC goes further on cost-cutting to bring down its expenses, which it said were far higher than its rivals, and said a number of senior bankers did not have sufficient experience of working in Asia.
/jlne.ws/3U7U7Rl

Coinbase blames sagging crypto volumes as revenue plummets; Digital currency exchange hit by low volatility and collapse in token prices
Scott Chipolina – Financial Times
Coinbase suffered sharp declines in revenues and trading volumes in the third quarter, as the washout in bitcoin and other digital assets has reversed the fortunes of the once fast-growing cryptocurrency exchange. The US-listed company acknowledged “another tough quarter” as it reported net revenue of $576mn, down from more than $1.2bn a year before and from $803mn in the previous quarter. Coinbase lost $545mn in the quarter, compared to a net profit of $406mn a year before.
/jlne.ws/3NzqJke

UBS native digital bond launched on SIX Digital Exchange and SIX Swiss Exchange; Three-year bond will leverage new operational link between CSDs of the two exchanges.
Richard Schwartz – The Trade
UBS today issued a CHF375 million three-year native digital bond with 2.33% coupon and a maturity in 2025. The bond was issued on the DLT-based CSD of SIX Digital Exchange and can also be held conventionally at SIX SIS. “The first example of an issuance of the dual-listed bond illustrates both the increasing attractiveness of issuing digital securities on SIX Digital Exchange as well as representing a significant step forward in the evolution of the SDX platform,” said David Newns, head SIX Digital Exchange, speaking exclusively to The TRADE.
/jlne.ws/3sX0z1k

China stocks notch trillion-dollar gain on hopes of reopening, better U.S. ties
Rae Wee and Ankur Banerjee – Reuters
Chinese markets soared and the yuan rose on Friday, with about a trillion dollars added to the value of Chinese stocks in week, as rumours and news reports fed hopes for twin relief in U.S.-China tension and China’s tough COVID rules. The Hang Seng surged 5.3% and notched its biggest weekly gain in 11 years. The Shanghai Composite rose 2.4% for a 5.3% weekly gain, the largest in more than two years and China-sensitive assets around the world rose sharply.
/jlne.ws/3zKNo7L

Crypto Gloom Deepens on JPMorgan Team’s Venture Capital Warning
Joanna Ossinger – Bloomberg
A retrenchment in venture capital funding for the digital-asset sector is the latest sign that a longer slump in crypto markets may lie ahead. That’s the view of JPMorgan Chase & Co. strategists including Nikolaos Panigirtzoglou, who said Thursday such funding is running at the equivalent of about $10 billion a year, less than a third of the pace seen in 2021.
/jlne.ws/3WuPzpC

Deloitte axes half of UK executive team; Accounting group removes 8 of 16-strong leadership in move that cuts female representation
Michael O’Dwyer, Accountancy Correspondent – Financial Times
Deloitte has overhauled its leadership in the UK, replacing half of the 16-person executive team, including the managing partner, in an unexpected reshuffle. Eight of the accounting firm’s most senior partners are set to leave the leadership team to make way for six newcomers, according to people briefed on the changes and documents seen by the Financial Times.
/jlne.ws/3fvIODx

Goldman Sachs Wants To Make Crypto Data Accessible To Institutions; It Will Unveil A New Data Service
Vandana Singh – Benzinga
Goldman Sachs Group Inc (NYSE: GS) is set to unveil a data service created with global index provider MSCI and crypto data firm Coin Metrics to classify hundreds of digital coins and tokens. CNBC is the first to report. “The digital asset ecosystem has really expanded over the last couple of years,” said Anne Marie Darling, head of client strategy for Goldman’s Marquee platform, in an interview.
/jlne.ws/3zIS8KU

Coinbase CEO says USDC will become ‘de facto central bank digital currency,’ company posts weak Q3 earnings
Leo Schwartz – Fortune
Walletconnect Says It Raised $12.5 Million In An Ecosystem Round, With Participation From Shopify, Coinbase Ventures And Others
Crypto Winter has come for one of the most established companies in the industry. The giant exchange disclosed on Thursday that net revenue for the third quarter was down 28% from the previous one, and that retail and institutional trading volumes took major hits as investors move away from the volatile crypto sector.
/jlne.ws/3FPwetz

Ukraine Invasion

How Russian soldiers ran a ‘cleansing’ operation in Bucha
Erika Kinetz – Associated Press
The first man arrived at 7:27 a.m. Russian soldiers covered his head and marched him up the driveway toward a nondescript office building. Two minutes later, a pleading, gagged voice pierced the morning stillness. Then the merciless reply: “Talk! Talk, f-ing mother-f-er!”
/jlne.ws/3NymBRE

Iran’s Weapons Are Slowly Dragging Israel to Ukraine’s Defense; Iranian involvement is changing the calculation of risks, as fears grow that Iran could be honing its capacity to strike Israel
Bloomberg News
After months of reluctance, Israel is softening its opposition to providing military aid to Ukraine, as Iran’s deepening support for Russia’s invasion evolves into a threat to Israeli security. A turning point came late last month, when Israeli Defense Minister Benny Gantz took a long-requested call from his Ukrainian counterpart Oleksii Reznikov. Israel committed to help Ukraine develop an early-warning system, similar to one that alerts Israelis to incoming fire from the Gaza Strip.
/jlne.ws/3NBr9XF

Kherson residents describe reign of terror under Russian rule; Alleged hanging of woman in southern Ukraine signifies Moscow’s brutality in occupied territory
Christopher Miller – Financial Times
Natalia Chorna had warned her more outspoken twin sister to be careful after Russian forces occupied their home town of Skadovsk near Kherson, southern Ukraine, in February. But Tetyana Mudryenko found it hard to keep her anger about the war to herself.
/jlne.ws/3Dze1xv

Scholz says Xi agrees nuclear threats over Ukraine are ‘irresponsible’; Leaders warn use of atomic weapons would ‘cross a line’ during talks in Beijing
Guy Chazan and Edward White – Financial Times
Olaf Scholz, the German chancellor, said that he and China’s president Xi Jinping had agreed during talks in Beijing that nuclear threats over the war in Ukraine were “irresponsible and extremely dangerous”. Russian president Vladimir Putin has made repeated warnings about using nuclear weapons as his eight-month invasion of Ukraine falters, part of a strategy western officials say is designed to deter military aid to Kyiv.
/jlne.ws/3sZAzTe

Zelenskyy hails UN nuclear investigation result; UK says Russia likely shooting its retreating soldiers
Natasha Turak – CNBC
Ukrainian President Volodymyr Zelenskyy praised the work of the International Atomic Energy Agency after it wrapped up its inspection of three nuclear power facilities in Ukraine and found no evidence of undeclared nuclear material or activities. The inspection, which was prompted by Kyiv inviting IAEA officials to its facilities, was welcome news after Moscow accused Ukraine of building a so-called radioactive “dirty bomb” to use on its own territory. The results of the inspection confirmed Russia’s “status of the world’s top liar,” Ukrainian Foreign Affairs Minister Dmytro Kuleba said in a tweet.
/jlne.ws/3t4YvV3

Bulgarian lawmakers give government month to devise Ukraine military aid plan
Reuters
Bulgaria should send military aid to Ukraine, the parliament decided on Thursday, giving the caretaker government one month to come up with a plan for what weapons the Black Sea country could send to support Kyiv. At present, Bulgaria is one of the few European Union countries not sending military aid to Ukraine, after the Russia-friendly Socialist party, a coalition partner in the previous government, blocked such a decision in May.
/jlne.ws/3t1WJEp

Exchanges, OTC and Clearing

Cboe Plans to Launch Trading in Mini S&P 500 Index (XSP) Options during Global Trading Hours, Beginning December 11
Cboe
Enables customers to trade Mini S&P 500 Index (XSP) options nearly 24 hours, five days a week; Adds to Cboe’s existing offering of SPX options and VIX options and futures during Global Trading Hours (GTH); Ability to harness the cash-settled, smaller-sized S&P 500 index options during GTH will help enable traders to adjust positions around the clock with even greater precision and flexibility Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced plans to launch trading in Mini S&P 500 Index (XSP) options during global trading hours (GTH), which will make the product available to customers nearly 24 hours every business day on Cboe Options Exchange, beginning December 11, 2022.
/jlne.ws/3DJ7Gjg

Cboe Global Markets Reports Results for Third Quarter 2022
Cboe
Third Quarter Highlights; Diluted EPS for the Quarter of $1.41, Up 26 percent; Adjusted Diluted EPS¹ for the Quarter of $1.74, Up 20 percent; Net Revenue for the Quarter of $442.4 million, Up 20 percent; Increases Organic Total Net Revenue Growth2 Target for 2022 to 14 to 16 percent, from 9 to 11 percent; Decreases 2022 Adjusted Operating Expense Guidance2 to $651 to $659 million, from $659 to $667 million. Cboe Global Markets, Inc. (Cboe: CBOE) today reported financial results for the third quarter of 2022. “Cboe delivered record adjusted earnings in the third quarter of 2022, building on the strong results produced over the first half of the year. The robust trends were driven by our derivatives franchise, supported by sizable contributions from our data and access solutions and cash and spot markets during the quarter,” said Edward T. Tilly, Cboe Global Markets Chairman and Chief Executive Officer.
/jlne.ws/3UrHBvy

Tradeweb Reports Total October 2022 Trading Volume of $21.3 Trillion and Average Daily Volume of $1.05 Trillion
Tradeweb via Barron’s
Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today reported total trading volume for October 2022 of $21.3 trillion (tn). Average daily volume (ADV) for the month was $1.05tn, a decrease of 16.5 percent (%) year-over-year (YoY). Tradeweb’s broad offering across products, geographies and client sectors resulted in a number of records for October 2022 including:
/jlne.ws/3sWUS3s

Indonesia Stock Exchange to Start Developing Carbon Trading in 2023
Laila Afifa – Temp.co
The Indonesian Stock Exchange (IDX) will begin the development of a carbon trading system in 2023. The purpose is to keep pace with the development trend in the application of ESG (Environmental, Social, and Governance) as well as sustainable finance at the global exchange level. “Therefore, the ensuing initiative from the first IDX plan is to support the development of the carbon trading system that will begin in 2023,” said Director of Corporate Assessment of IDX, I Gede Nyoman Yetna, at the 2022 Mandiri sustainability forum event, Wednesday, November 2, 2022.
/jlne.ws/3Wo9NBk

Bursa Malaysia and LSE ink ESG MoU
Bursa Malaysia Berhad
Bursa Malaysia Berhad or (“Bursa Malaysia” or the “Exchange”) and the London Stock Exchange Group (“LSEG”), today signed a Memorandum of Understanding (“MoU”), to expand the ESG collaboration between the two exchanges as well as explore new areas of opportunity. Under the MoU terms, Bursa Malaysia and FTSE Russell, LSEG’s global multi asset index and benchmark provider, will expand its coverage of ESG scores to include all PLCs listed on the Main and ACE Markets.
/jlne.ws/3U1Q60C

ESG scoring to cover all listed companies
FMT Business
The environmental, social and governance (ESG) capabilities of all Malaysian public-listed companies (PLCs) will now be measured under an expanded corporate reporting solution. The coverage of all counters on Bursa Malaysia under the FTSE Russell’s ESG scoring system has been made possible with the signing of a memorandum of understanding (MoU) between Bursa Malaysia Bhd and the London Stock Exchange Group (LSEG).
/jlne.ws/3WuOr5m

Euronext announces its financial calendar for 2023
Euronext
Euronext, the leading pan-European market infrastructure, today announced its financial calendar for 2023, set as follows.Full-year 2022 results: Release on Thursday 9 February 2023, after market closing; Analysts conference on Friday 10 February 2023, at 9.00am (CET); Quiet period from 20 January to 9 February 2023.
/jlne.ws/3U4cZkc

Miami International Holdings Reports October 2022 Trading; Results; SPIKES Futures, MIAX Options and MIAX Pearl Equities Set Year-to-Date Volume Records
MIAX
Miami International Holdings, Inc. today reported October 2022 trading results for its U.S. exchange subsidiaries – MIAX®, MIAX Pearl® and MIAX Emerald® (together, the MIAX Exchange Group), and Minneapolis Grain Exchange (MGEX™).
/jlne.ws/3zKBsmq

Opening Keynote Welcome by Pol de Win, Head of Global Sales & Origination, SGX Group, ESG in Fixed Income Asia 2022, featuring Green, Social, Sustainability and Sustainability-linked Bonds
SGX Group
Good morning, and welcome to this Asian edition of Environmental Finance’s ESG in Fixed Income Conference. We are very pleased to be a partner of this conference, where bond issuers, investors and other stakeholders discuss and learn from each other’s perspectives on the sustainable debt market – a fast-evolving market that is gaining considerable attention globally, as investors increasingly place more emphasis on investing with purpose.
/jlne.ws/3t1XyNv

TMX Group Consolidated Trading Statistics – October 2022; Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange and Montréal Exchange
TMX
TMX Group Limited today announced October 2022 trading statistics for its marketplaces – Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange and
Montréal Exchange.
/jlne.ws/3Wx7ewL

Fintech

Twitter Reportedly Halts Work on Crypto Wallet, Driving Dogecoin Down 10%
James Rubin – CoinDesk
Social media platform Twitter has halted its plans to build a crypto wallet as part of ongoing changes kickstarted last week by its new owner, Elon Musk, the online publication Platformer wrote Thursday. “A recently revealed plan to build a crypto wallet for Twitter appears to be on pause,” the article said.
/jlne.ws/3FOum42

Musk Eliminates ‘Days of Rest’ From Twitter Employee Calendars
Edward Ludlow and Kurt Wagner – Bloomberg
Elon Musk has removed “days of rest” from Twitter Inc. staff calendars, according to people familiar with the matter. The monthly, company-wide day off was introduced during the pandemic period. Its expiration is another sign of Musk’s impatience with Twitter’s existing work culture. Musk also plans to cancel Twitter’s remote work policy and have staff that are spared from deep layoffs return to Twitter offices full time.
/jlne.ws/3U6r4gW

Is Friction Always The Villain It’s Made Out To Be In Fintech?
Snigdha Kumar – Forbes
Slogans such as “taking the friction away,” “one-tap access” and “simpler, faster, better” are ubiquitous across financial technology product marketing. Fintechs, whether in banking, lending, savings, budgeting or investing, have always focused on simpler, faster and frictionless products. Dealing with money is hard and scary for most people, and, therefore, fintechs’ endeavors to simplify and make products frictionless are definitely noble.
But is friction always the enemy? No.
/jlne.ws/3FOvYuC

FIVE new fintech trends to watch in cryptocurrency and DeFi
Joanna England – FinTech Magazine
Crypto investing was once the forte of experimental risk-takers seeking a wild west approach to fortune hunting. As the space evolved, it has garnered increasing interest from established investors and incumbents. Though a lack of regulation within the industry is still a factor in preventing its complete transition to the mainstream, progress is being made.
/jlne.ws/3U63elv

Google Cloud Accelerates Fintech Sustainability
Emma Chervek – SDX Central
Google Cloud established an advisory board for its joint Point Carbon Zero program with the Monetary Authority of Singapore (MAS) in an effort to spur funding and adoption of fintech solutions in Asia that mitigate climate change and limit negative corporate environmental impacts.
/jlne.ws/3zLOFLH

Our Future Artificial Intelligence Overlords Need a Resistance Movement; Improving transparency about how algorithms reach their decisions is essential to keeping humans safe from harm.
Parmy Olson – Bloomberg
Artificial intelligence has been moving so fast that even the scientists are finding it hard to keep up. In the past year, machine learning algorithms have started to generate rudimentary movies and stunning fake photographs. They’re even writing code. In the future, we’ll probably look back on 2022 as the year AI shifted from processing information to creating content as well as many humans.
/jlne.ws/3T3Fc9d

Cybersecurity

With Hacks at a Record High, Crypto Needs to Find Better Ways to Keep Users Safe
Daniel Kuhn – CoinDesk
The figures are in: October was the busiest month for crypto protocol exploits this year, with some $760 million stolen. The cumulative total for crypto hacks in 2022 is now at least $2.98 billion, already more than double the amount stolen through exploits in 2021, according to blockchain security firm Peckshield.
/jlne.ws/3Tasupk

WiFi security flaw lets a drone track devices through walls Intruders could find weak points in your home, or even track people.
J. Fingas – Engadget
WiFi’s friendliness to other devices might pose a significant threat in the wrong circumstances. University of Waterloo researchers have discovered a security flaw in the networking standard that lets attackers track devices through walls. The technique identifies the location of a device within 3.3ft just by exploiting WiFi devices’ automatic contact responses (even on password-protected networks) and measuring the response times. You can identify all the connected hardware in a room, and even track people’s movements if they have a phone or smartwatch.
/jlne.ws/3DyFqjb

What Musk might mean for cybersecurity at Twitter
Tim Starks – The Washington Post
Elon Musk purchased a version of Twitter with plenty of built-in cybersecurity woes. Some cyber experts are worried the world’s richest man might only make matters worse.
Certain Musk plans that could affect security at Twitter, such as workforce cuts that could reduce the company’s cybersecurity staff, pose a more immediate risk. Other changes could improve security on the social media platform. Some of this depends on whether the mercurial Musk follows through on his publicly-stated plans for the platform.
/jlne.ws/3DzbqUh

New CISA Goals Tackle Critical Infrastructure Cybersecurity
Carrie Pallardy – Information Week
The Department of Homeland Security has developed and released new cybersecurity performance goals for critical infrastructure through the Cybersecurity and Infrastructure Security Agency (CISA). Cyber threats facing critical infrastructure are on the rise, and these new goals are designed to give stakeholders the foundation they need to reduce cyber risk.
/jlne.ws/3zIUUji

Meet The Female Founders Reshaping The Male-Dominated Cybersecurity Industry
MeiMei Fox – Forbes
The recent Women in the Workplace report from McKinsey & Co. and LeanIn revealed that we are in the midst of “The Great Breakup.” Women are leaving their corporate jobs, switching positions, and failing to rise in the management ranks. Unfortunately, matters are even worse in the cybersecurity industry, where women make up just 24 percent of the total workforce and occupy only 11 percent of the C-level positions.
/jlne.ws/3WqTi7P

Cryptocurrencies

Ethereum and Cardano Co-Founder: Crypto Has Extended Its Reach Beyond Finance
Alessandro Albano and Francesco Casarella – Investing.com
Investing.com – “Over the next 10 years, the crypto market will continue to experience alternating bull/bear market cycles, but investor adoption of digital currencies will continue to increase.” So said Charles Hoskinson, founder or co-founder of blockchain platforms Cardano and Ethereum, in an interview he gave to Investing.com this week during the Web Summit 2022 in Lisbon.
/jlne.ws/3E0G8qR

‘Very Hard To Predict’-Binance CEO Reveals ‘90%’ Failure Rate Fear After $500 Million Elon Musk Twitter Bet Amid Bitcoin, Ethereum And Crypto Price Crash
Billy Bambrough – Forbes
Bitcoin, ethereum and other major cryptocurrencies have seen an uplift from Elon Musk’s acquisition of Twitter as traders bet he could incorporate crypto. Subscribe now to Forbes’ CryptoAsset & Blockchain Advisor and successfully navigate the $2 trillion bitcoin and crypto market crash The bitcoin price has climbed over $20,000 per bitcoin since late October, boosting the ethereum price and other major cryptocurrencies (including Elon Musk’s “fave,” which has almost doubled)-despite Coinbase’s chief executive admitting he “overestimated” bitcoin’s potential this year. Now, as Musk experiments with different ideas for Twitter, the billionaire chief executive of bitcoin and crypto exchange Binance, Changpeng “CZ” Zhao, has said he expects 90% of new Twitter features to fail after investing $500 million in Musk’s acquisition.
/jlne.ws/3UsJEPU

Coinbase reports third-quarter loss as volumes drop
Reuters
U.S. cryptocurrency exchange Coinbase Global Inc (COIN.O) on Thursday reported a third-quarter loss as high inflation, rising interest rates and geopolitical tensions weakened demand for risky assets, sapping trading volumes for digital currencies like bitcoin. Coinbase said it had a net loss of $544.6 million for the three months ended Sept. 30, or $2.43 per diluted share, compared with a profit of $406.1 million, or $1.62 per diluted share, a year earlier. Transaction revenue fell 64% from a year earlier to $365.9 million.
/jlne.ws/3E0rShD

Coinbase Deal Shows Google Is Committed to Crypto – How Much Depends on Whom You Ask
Lawrence Lewitinn – CoinDesk
Going by recent headlines and what the company says, one would assume Google is diving into crypto. Yet, some see the tech giant’s choice of partner – Coinbase – as proof Google is just dipping its toe. A couple of weeks ago, Google and Coinbase put out a joint press release titled, “Google Cloud and Coinbase Launch New Strategic Partnership to Drive Web3 Innovation.” A few days later, Google Cloud introduced its Ethereum blockchain node engine.
/jlne.ws/3U5Gnqh

‘Hyperbitcoinization’ Is a Few Years Away, Predicts Samson Mow
Frederick Munawa – CoinDesk
Eurozone and U.K. inflation rates are at record, double-digit highs, prompting some governments to begin warming up to bitcoin. One evangelist is meeting with officials to accelerate the process. Most people already know El Salvador made bitcoin legal tender in September of last year. The Central African Republic followed suit this past April. But less publicized is that some elected officials in places like the U.K. and Portugal are increasingly taking a shine to bitcoin.
/jlne.ws/3h5mbWJ

Terra’s Do Kwon May Be in Europe: Report
Jamie Crawley – CoinDesk
South Korean prosecutors have indicated that the fugitive co-founder of Terraform Labs, Do Kwon, is in Europe, Bloomberg reported on Friday. Prosecutors also said they have obtained chat histories which point to price manipulation of the tokens he created. The Terra ecosystem collapsed in May, losing $60 million in value, after which Kwon faced charges of violating capital markets laws in South Korea. Terra’s collapse was a seismic event in the crypto industry with reports of some investors losing their life savings.
/jlne.ws/3NxOYj0

Singapore Approves In-Principle License for Crypto Fund Manager Hashkey
Sandali Handagama – CoinDesk
Singapore’s central bank has approved an in-principle license for a local unit of Hong Kong virtual asset manager Hashkey Group, the company said Friday. Once granted, the license will allow the company to conduct fund management services in Singapore. Spooked by the crypto market meltdown and the fall of some large players in the space with ties to the country earlier this year, the Monetary Authority of Singapore promised to tighten control over the industry. Since then the central bank has granted in-principle Capital Markets Services licenses to a slew of companies including stablecoin issuers Circle and Paxos and crypto exchange Blockchain.com.
/jlne.ws/3FKYeP0

India forms new crypto advocacy body with Coinbase, Polygon
Pradipta Mukherjee – Forkast
Cryptocurrency exchanges and Web 3.0 companies, including Coinbase and Polygon, have formed the Bharat Web3 Association (BWA) in India to strengthen regulation and consumer protection for the industry. “The forthcoming G20 discussions will provide an excellent opportunity for India in leading a collaborative regulatory framework for digital assets, and the BWA is committed to working with the government of India towards this objective,” BWA said in a statement emailed to Forkast.
/jlne.ws/3FKrl4U

Goldman Sachs To Standardize Crypto Data for Institutional Investors
Mathew Di Salvo – Decrypt
Wall Street giant Goldman Sachs will soon provide institutional clients with an online resource that explains and categorizes cryptocurrencies. Called Datonomy, the service will help institutional investors who may be strangers to the space wrap their heads around the hundreds of coins and tokens which now make up a $1.05 trillion industry.
/jlne.ws/3U76cGa

El Salvador’s Bitcoin Experiment: A Stroke of Genius or Pure Madness?
Eric McConnell – Benzinga
A little over a year ago, El Salvador made a bold bet on Bitcoin. The Central American nation of 6.5 million residents became the first country in the world to accept Bitcoin as legal tender. Led by its young president, Nayib Bukele, El Salvador sought to change its economic fortunes overnight with this decision. Needless to say, there were raised eyebrows around the world when Bukele announced the country’s move to Bitcoin. Up to that point, El Salvador had been famous for many reasons, but none of them were good. In addition to being one of the poorest countries in the Western Hemisphere, El Salvador is plagued by a pernicious violent crime problem because of the entrenched presence of MS-13, one of the world’s most notorious street gangs.
/jlne.ws/3sW6VOC

SuperRare NFT Marketplace Launches RarePass for Exclusive Curated Art Drops
Fran Velasquez, Doreen Wang – CoinDesk
SuperRare, an Ethereum-based, decentralized digital art marketplace, is looking to shake up the way art is collected through the launch of its “Genesis” RarePass. Holders of the RarePass, which SuperRare Labs Chief Operating Officer Kyle Olney compares to a subscription-like service, will receive curated crypto art by some of the most prominent artists on the platform, all within a single transaction.
/jlne.ws/3DAjMuH

NFTs, Crypto Stolen After Web3 Gaming CEO Gabriel Leydon’s Twitter Hacked
Andrew Hayward – Decrypt
Social media scams are thriving in the crypto space, and NFT collectors are losing their assets to attacks perpetrated through hijacked accounts. The latest example happened last night, with dozens of NFTs and about $30,000 worth of cryptocurrency stolen through a scam shared through the account of a well-known Web3 game developer. On Wednesday, the Twitter account of Gabriel Leydon-co-founder and CEO of Limit Break, the gaming startup behind anime-inspired Ethereum NFT project, DigiDaigaku-was apparently taken over by an unauthorized user. The account proceeded to share a link to what was billed as access to an allowlist to secure a mint for a free DigiDaigaku NFT.
/jlne.ws/3T5KW2g

Instagram jumps into NFTs with minting and selling feature
Crystal Kim – Axios
Meta’s Instagram will soon allow artists to create and sell their own NFTs both right on the social media platform and off it. Why it matters: Big Tech wants in on crypto, and the social media juggernaut’s entry into NFTs points to growing competition between marketplaces in spite of dwindling trading volumes and falling prices. Driving the news: IG’s feature will roll out to a small group of select creators in the U.S. to start, according to Meta. The first creators tapped to test the feature include photographer Isaac “Drift” Wright, known as DrifterShoots, and artist Amber Vittoria.
/jlne.ws/3DES7ZC

Alchemy Launches NFT Allowlist Platform Spearmint for Ethereum, Layer-2 Projects
Kate Irwin – Decrypt
Blockchain software company Alchemy has launched a new product called Spearmint, which aims to make the NFT allowlist signup and management process easier for creators. Spearmint is a free product NFT creators can use to automate much of the allowlist creation process using Spearmint’s tools. According to a statement, Alchemy claims users can create an allowlist on Spearmint in under 10 minutes and connect it to a project’s application and smart contract “with a few simple lines of code.”
/jlne.ws/3DwkYzk

Monkey Drainer Scammer Strikes Again, Steals $800K of NFTs
Oliver Knight – CoinDesk
Notorious non-fungible token (NFT) scammer Monkey Drainer has stolen $800,000 worth of Crypto Punk and Otherside NFTs, according to blockchain sleuth ZachXBT. The hack was the second in as many weeks, with the prolific phishing scammer swindling $1 million worth of crypto and NFTs on Oct. 25. This time, the wallet tagged as Monkey Drainer stole seven Crypto Punks and 20 Otherside NFTs before flushing the ill-gotten gains through anonymous coin mixer Tornado cash, as reported by blockchain security firm PeckShield
/jlne.ws/3NCcaMN

Politics

U.S., Allies Set Parameters for Price Cap on Russian Oil; Cap will only apply to the first point of sale of Russian oil that takes place on land, U.S. and its allies have determined
Andrew Duehren – The Wall Street Journal
The U.S. and its allies have reached agreement on which sales of Russian oil will be subject to a price cap, racing to flesh out the details of the major new sanctions program before it begins on Dec. 5.Each load of seaborne Russian oil will only be subject to the price cap when it is first sold to a buyer on land, the U.S. and its allies have determined, meaning resales of the same oil won’t have to fall under the cap, according to people familiar with the matter. The cost charged for transporting Russian oil also won’t be subject to the cap, the people familiar with the parameters of the plan said.
/jlne.ws/3U1Z9i6

Anti-ESG Republican Rhetoric Threatens Fund Flows as Midterms Loom; About 45% of those surveyed by Bloomberg expect a Republican victory to be bad for proponents of sustainable investing.
Saijel Kishan – Bloomberg
ESG-labeled investment funds risk losing investors if Republicans take back control of the US Congress. A Bloomberg News survey of attitudes to ESG found that about 45% of terminal readers expect money flows to funds donning the ESG label to slow with a GOP victory at Tuesday’s election. Roughly one third said there won’t be any impact, while 5% said flows will increase and almost 15% aren’t sure. Bloomberg surveyed 550 terminal users over the past month.
/jlne.ws/3zLes6C

Billionaire GOP Donors Overwhelm Democrats in Reversal of 2018; Griffin, Schwarzman and Ellison among donors giving Republican candidates a stark fundraising advantage in the midterm elections.
Laura Davison and Amanda Albright – Bloomberg
Citadel’s Ken Griffin, Blackstone Inc. Chief Executive Officer Steve Schwarzman and Oracle Corp. founder Larry Ellison are among the billionaire Republican donors who have rapidly scaled up their political contributions this midterm election cycle, boosting the odds of a divided Washington for the next two years. The three men, worth a collective $150 billion, are among the 12 top political donors ahead of the elections, according to the most recent data from OpenSecrets. Of that dozen, 10 are backing Republicans in a big way: They’ve spent a cumulative $338 million, up 250% from the 2018 cycle.
/jlne.ws/3T7gCo5

GOP Plans to Offer Oil, Gas and Trees As Climate Fixes in Next Congress; If they prevail in the midterms, Republican lawmakers want to revisit past proposals to stem climate change, in part by ramping up domestic production of fossil fuels.
Ari Natter – Bloomberg
Republicans in Congress are dusting off past plans to address climate change as they prepare for the likely prospect they will win control of at least one chamber of Congress in the midterm elections next week. Their ideas include planting millions of trees and boosting energy efficiency, hydropower, nuclear energy and carbon sequestration. They would also increase domestic fossil fuel production by expanding federal oil and gas leasing and banning energy development moratoriums on federal lands.
/jlne.ws/3U7a0Hx

Manchin Tells CEOs to Stop Rewarding Bad Behavior With Campaign Checks; Democrat says asking nothing in return a ‘foolish investment’; Manchin says some donations added to government dysfunction
Steven T. Dennis – Bloomberg
West Virginia Senator Joe Manchin told a gathering of corporate leaders they’re rewarding “bad behavior” by sending campaign checks to politicians based on party or ideology and not asking how they’ll benefit. “Quit writing checks to everybody,” Manchin said at a Fortune CEO conference. “The investments you’ve made in politics from the Democrat side, and the Republican side, by asking nothing in return, is a foolish investment.”
/jlne.ws/3sWAiAj

Trump Media-Tied SPAC Still Can’t Get the Votes, Delays Meeting
Bailey Lipschultz – Bloomberg
The SPAC taking Donald Trump’s media venture public is running into a roadblock: Its own investors. Digital World Acquisition Corp. said on Thursday it will again delay a shareholder vote, this time to Nov. 22, for a no-cost deadline extension, the sixth postponement in the past two months. It’s the latest example that Trump’s loyal following of retail traders, regardless of their diamond hands, don’t understand the importance of voting.
/jlne.ws/3sZy7w0

Canada to examine crypto, stablecoins, CBDCs in recent budget
Oisin Mcilroy – Forkast
The Canadian government will begin a consultation on the risks that digital assets and currencies may pose to the country’s traditional financial system. The Canadian government’s 2022 Fall Economic Statement released by Deputy Prime Minister Chrystia Freeland on Thursday announced “consultations with stakeholders on digital currencies, including cryptocurrencies, stablecoins, and central bank digital currencies.”
/jlne.ws/3WuzTma

Canada Announces Crypto, Stablecoin Consultation in New Budget Statement
Nikhilesh De – CoinDesk
Canada’s federal government announced it was launching a consultation on “cryptocurrencies, stablecoins and central bank digital currencies,” in a fiscal update published Thursday. The Fall Economic Statement, a mini-budget released by Deputy Prime Minister Chrystia Freeland, is the government’s fiscal road map over the coming months. Among provisions on taxes, recovering from COVID-19 and hurricanes, and budget projections was a section on the “digitalization of money,” which highlighted cryptocurrencies and digital assets and their use worldwide.
/jlne.ws/3hcnm6G

Mark Carney Blames Brexit for Rising BOE Rates and Says He Was Right; Former Bank of England governor says his warnings were correct; Rising interest rates due to inflation partly due to Brexit
Liza Tetley – Bloomberg
Former Bank of England Governor Mark Carney pointed to Brexit as a key reason why the UK central bank is now having to hike interest rates in its struggle to contain inflation. Alongside rising energy prices and a tight labor market, Britain’s exit from the European Union added to the economic headwinds for the UK, according to Carney.
/jlne.ws/3zItMRG

Bank of England Is Back to Reality After Truss Fiasco; A two-year recession could be in store for the UK, but mortgage holders might just catch a slight break.
John Authers – Bloomberg
The last meeting of the Bank of England’s monetary policy committee was only seven weeks ago, but to economic policymakers it seems like a lifetime. The country has a new prime minister and a new chancellor of the exchequer, while Britain’s bond and currency markets have endured a crisis for the ages. The upshot of all the excitement is that the MPC can belatedly correct an error from September. Back then, it narrowly decided to hike rates by only 50 basis points, rather than following others with a 75 basis-point hike – only to learn the next day that the government intended to administer a huge stimulus in the form of unfunded tax cuts.
/jlne.ws/3U3RgZu

The True Price of Unhooking Europe From Putin’s Gas; Europe has spent a whopping $105 billion stockpiling gas since the Ukraine invasion. There’s no room to relax.
Lionel Laurent – Bloomberg
A quiet confidence is emerging amid the gloom of Europe’s energy crisis. Natural gas prices are falling as storage tanks fill up. Demand is being dialed down, helped by weather. Getting through winter without relying on Vladimir Putin’s gas is looking achievable. The optimism is such that even after the euro area’s latest painful inflation figures, economists are imagining a softer downturn ahead. Bloomberg Economics last week floated the possibility that even a shallow recession might be averted if energy costs kept falling and luck stayed on policy makers’ side.
/jlne.ws/3hcpZpl

Hong Kong Comeback Party Goes Better Than Feared as Markets Soar
Richard Frost – Bloomberg
Hong Kong’s big week aimed at relaunching the city didn’t get off to a great start. Top executives were pulling out of the long-awaited banking summit for health reasons. The finance chief caught Covid overseas, raising the risk of him missing the event. The local stock benchmark fell to a 13-year low. Data showed the economy shrank the most in more than two years. To cap it off, a tropical cyclone was bearing down on the city.
/jlne.ws/3UsLgth

Regulation

US Offers Bounty for Singaporean Over North Korea Oil Shipments
Philip Heijmans – Bloomberg
The US Department of State on Thursday issued a $5 million bounty for information on a Singaporean businessman who broke international sanctions by transporting fuel to North Korea. Kwek Kee Seng, director of the Singapore-based shipping company Swanseas Port Services (S) Pte. Ltd., is accused of directing the delivery of petroleum products to North Korea and using one of his own oil tankers, the M/T Courageous, to conduct illicit ship-to-ship transfers, according to a statement.
/jlne.ws/3t3Q38w

Trader Arrested in Ibiza Awaits FX Case That’s Dividing Wall Street; Glen Point’s Neil Phillips accused of market manipulation; Supporters argue he is simply a hard-charging trader
Donal Griffin, Amelia Pollard, and Nishant Kumar – Bloomberg
Over almost three decades in the City of London, the aggressive trading strategies of Glen Point Capital co-founder Neil Phillips made him few friends even as they burnished his reputation as a hard-charging trader. Those sharp elbows have now drawn the attention of the US Department of Justice, which charged Phillips with market manipulation in September. The move sent shockwaves from the Spanish island of Ibiza — where he was arrested on vacation and is now awaiting an extradition hearing — all the way back to Wall Street.
/jlne.ws/3h63brb

Virtu CEO ‘Alarmed’ by SEC Effort to Overhaul Stock-Trading Rules; SEC under Gensler is proposing new rules for equities market ‘We are alarmed by the current SEC comments,’ Cifu says
Katherine Doherty – Bloomberg
Virtu Financial Inc. Chief Executive Officer Doug Cifu criticized the US Securities and Exchange Commission and Chair Gary Gensler’s efforts to change the way equity trades are processed, saying that proposed changes could hurt financial markets. “We are alarmed by the current SEC comments that reflected diversions from the SEC’s longstanding goal of enhancing and protecting the retail-investor experience,” Cifu told analysts and investors on the company’s earnings call Thursday. “The SEC has assigned itself an ambitious agenda with numerous interrelated market structure reforms that could significantly alter our efficient, accessible and resilient financial markets.”
/jlne.ws/3NzNJ2B

CFTC to Hold an Open Commission Meeting November 10
CFTC
Commodity Futures Trading Commission Chairman Rostin Behnam today announced the Commission will hold an open meeting on Thursday, November 10 at 9:30 a.m. (EST).
The Commission will consider the following:
Notice of Proposed Rulemaking on Reporting and Information Requirements for Derivatives Clearing Organizations
Notice of Proposed Order and Request for Comment on an Application for a Capital Comparability Determination Submitted on behalf of Nonbank Swap Dealers subject to Regulation by the Mexican Comision Nacional Bancaria y de Valores
/jlne.ws/3U9w2ti

CFTC Recognizes the UK FCA for Cross-Border Enforcement Cooperation
CFTC
The Commodity Futures Trading Commission today recognized and expressed appreciation to the UK Financial Conduct Authority (UK FCA) for taking actions that demonstrated critical cross-border cooperation to ensure the integrity of U.S. markets and markets abroad.
/jlne.ws/3DXD7HE

Court Enters Final Judgments Against Investment Adviser and Its Principal for Defrauding Clients Through Their Selection of Higher-Cost Unit Investment Trusts
SEC
On October 28, 2022, a federal district court in Pennsylvania entered final judgments against Defendant McDermott Investment Advisors, LLC (“MIA”), a registered investment adviser; Defendant Dean Patrick McDermott, MIA’s owner and principal; and Relief Defendant McDermott Investment Services, LLC (“MIS”), McDermott’s and MIA’s affiliated broker-dealer. The judgments order the Defendants and Relief Defendant to pay over $350,000 in disgorgement, prejudgment interest, and civil penalties, broken down as follows: (1) McDermott, MIA, and MIS jointly and severally must pay $143,379.33 in disgorgement; (2) McDermott, MIA, and MIS jointly and severally must pay $50,983.60 in prejudgment interest; (3) MIA must pay $110,000 in civil penalties; and (4) McDermott must pay $50,000 in civil penalties.
/jlne.ws/3T5igqi

SEC Obtains Final Judgment Against Former President of Wilmington Trust
SEC
On November 2, 2022, the United States District Court for the District of Delaware entered a final consent judgment against Robert V.A. Harra, Jr., the former President and Chief Operating Officer of Wilmington Trust. The SEC charged Harra and three other defendants in 2015 with fraud for their roles in Wilmington Trust’s making of false or misleading public statements and omissions regarding its loan portfolio, including its underreporting, by hundreds of millions of dollars, of its real estate loans which were 90 days or more past due. The SEC’s complaint, which was amended in March 2022, further alleged that Harra made false and misleading statements concerning the credit quality of certain of Wilmington Trust’s loans.
/jlne.ws/3sWZOp1

SEC Charges Promoter for Role in Fictitious Crypto Trading Program
SEC
The Securities and Exchange Commission announced today that it filed charges against Jeremy K. Rounsville, a resident of Hunt County, Texas, for his role in offering and promoting a fictitious trading program marketed under the name of Arbitraging.co.
/jlne.ws/3WtuJaf

Investing and Trading

China Property Bonds Are ‘No Longer Analyzable’ as Crisis Grows; Prices reflect black box market beyond analysis: Loomis’ Feng; Contagion has spread to firms that had been seen as safer
Alice Huang – Bloomberg
The crisis in Chinese property dollar bonds has become so extreme that an analyst who’s been covering the market since its inception in 2005 says meaningful analysis is no longer possible. “The proven investment approach is that it won’t go wrong being negative or more negative ahead of the market,” said Zhi Wei Feng, a senior analyst at Loomis Sayles Investments Asia Pte, who was working on credit research at Barclays Capital in 2005, when the first-ever Chinese real estate firm dollar bond was issued.
/jlne.ws/3WvQl5D

U.S. sells last batch of emergency reserve oil from historic release
Timothy Gardner and Ismail Shakil – Reuters
The U.S. Department of Energy on Thursday said it sold 15 million barrels of oil from the Strategic Petroleum Reserve to six companies, completing the last batch of the largest-ever release from the stockpile announced by President Joe Biden in March.
/jlne.ws/3UnSe2G

A major hedge fund just warned that hyperinflation could lead to ‘global societal collapse’-and it blames the central bank
Tristan Bove – Fortune
The world’s worst financial crisis in decades may be right on our doorstep. Rising inflation and the largest interest rate hikes globally in two decades have set the stage for the biggest economic upheaval since World War II, according to Elliott Management, a major hedge fund that manages nearly $56 billion in assets. A unique and “extraordinary” set of economic conditions is steering the globe toward a crisis worse than any of the stock market crashes or energy shocks of the past 70 years, Elliott warned in a recent letter to clients, the Financial Times reported Wednesday.
/jlne.ws/3Nxf3yJ

Does your money manager pass the Ofsted test? Review your investment performance. If it doesn’t add up, head for the exit
Moira O’Neill – Financial Times
In the past year, many parents, including myself, have seen Ofsted downgrade their child’s school from “outstanding” to “good”. This is because Ofsted has actively chosen to make it harder for schools to get the top grade. Raising the performance bar should apply to your investments too, especially if you’re one of the 2.4mn people in the UK who pay for wealth management.
/jlne.ws/3U68AgB

Beware the foreign exchange transfers maze; The money changers’ charges are crippling – and there are plenty of pitfalls along the way
Hugo Cox – Financial Times
The last time the pound was this weak against the dollar, the UK had just agreed to hand Hong Kong back to China, it was in the grip of the miners’ strike and King Charles was just 36 years old. Against the euro, things haven’t been this bad since the 2008 financial crisis. This will be good news if you have been working abroad and are returning to the UK armed with savings in foreign currencies, or considering a UK home purchase from abroad, but terrible news if you are a Briton pursuing your lockdown dream of buying a foreign holiday home.
/jlne.ws/3hcuTCL

Iron-Ore Prices Buckle as China Property-Market Slump Drags On; Party congress in Beijing offers little support for sector that is a key driver of global steel demand
Rhiannon Hoyle – The Wall Street Journal
Iron-ore prices have slumped to a three-year low as a sharp slowdown in Chinese homebuilding combines with Beijing’s zero-Covid strategy to sap demand for the steelmaking commodity. The benchmark price of iron ore-one of the world’s most-traded commodities-fell by 17% in October from September to end the month more than 50% below its 2022 high, which was set in March.
/jlne.ws/3T6tdbh

When Is the Best Time of Day to Buy an ETF? Research suggests that the conventional wisdom-buy when trading volume is highest-is flawed
Derek Horstmeyer – The Wall Street Journal
When is it best during the day to hit that “buy” button on an ETF trade? Conventional wisdom says an investor should buy shares when trading volume is highest, at the market’s open and toward the close. The idea is that heavier trading generally means narrower bid-ask spreads-the difference between the bid price of a share (what you can sell it for) and the higher ask price (what you can buy it for). A wider spread at the time of purchase means less profit when the shares are eventually sold.
/jlne.ws/3G1Vi0z

Tiger Global Halts New Chinese Equities Investments; Longtime China investor seeks more clarity before putting more money in Chinese equities
Juliet ChungFollow and Jing Yang – The Wall Street Journal
Longtime China investor Tiger Global Management has hit pause on investing in Chinese equities, said people familiar with the matter, as the firm reassesses its exposure to the world’s second-largest economy after President Xi Jinping cemented his control over the country. Tiger executives, including founder Charles “Chase” Coleman, have told others that Mr. Xi’s reelection and his stacking of the Communist Party’s leadership with loyalists at the recent party Congress could increase geopolitical tensions and means the country’s Zero-Covid policy will likely continue, the people said.
/jlne.ws/3UoiDx3

Environmental, Social and Corporate Governance

20+ leaders of banks and insurers will reunite this month for the second meeting of UNEP FI’s #LeadershipCouncil, a high-level annual meeting to elevate ambition and action for a sustainable financial system.
UNEP FI – Twitter
Chaired by Inger Andersen, United Nations Under-Secretary General and Executive Director of the UN Environment Programme, the UNEP FI Leadership Council meets annually to provide vision and strategic direction to UNEP FI in orienting its role and that of the UN, in shaping, mainstreaming and deepening sustainability integration across the industry. It is designed to further mobilise the financial community to support a sustainable, resilient and inclusive economy.
/jlne.ws/3FJSzIJ

MSCI and Bloomberg Launch New Indexes; Plus: VanEck targets US sustainable infrastructure with ETF launch
Banking Exchange
MSCI and Bloomberg have separately launched new benchmarks aimed at investors wanting to reduce the carbon emissions and improve the sustainability credentials of their equity and bond portfolios. MSCI has created five Climate Action indexes for equities, using four key data points to rank companies and build the benchmarks. Companies must score well cumulatively across the four criteria to be included. The criteria are: green revenues, climate risk management, carbon intensity, and having emission reduction targets approved by the Science-Based Targets Initiative or a similar credible plan.
/jlne.ws/3U3NkrG

Asset Managers Hit by More Bad News on Top-Ranked ESG Funds; Europe’s highest-ranking sustainable fund category keeps getting dragged down by controversial revelations.
Frances Schwartzkopff and Greg Ritchie – Bloomberg
Europe’s top ESG fund class may be close to reaching a tipping point. Known as Article 9, the designation may be stripped from hundreds of funds in the coming months, industry estimates show. There are now signs that investment clients are starting to retreat, as fresh data points to a marked slowdown in flows. And on Thursday, a report indicated that some Article 9 funds hold assets that may violate UN and OECD standards on everything from bribery to environmental damage.
/jlne.ws/3hd01lx

Wealth Management ESG (Environmental, Social and Governance) Thematic Research Report Featuring Robinhood, TrueWealth, DBS, UBS, Goldman Sachs, Marcus, & Wealthfront – BusinessWire
The “ESG (Environmental, Social and Governance) in Wealth Management – Thematic Research” report has been added to ResearchAndMarkets.com’s offering. Drawing on the 2021 Global Wealth Managers Survey, this report explores the current state of ESG adoption in the wealth management space and analyzes the key trends that are expected to shape the sector going forward. Environmental, social, and governance (ESG) is no longer just a buzzword. The theme is having a major impact on the broader financial services industry – particularly the wealth management sector. Globally, HNW investors allocate an average of 26% of their financial assets to ESG investment products.
/jlne.ws/3UrmqtO

South Africa Gets $497 Million to Produce Clean Energy From Coal Plant Site; World Bank approves financing for renewable power projects; Komati plant shut last fossil fuel-burning unit this week
Paul Burkhardt – Bloomberg
A coal-fired plant in South Africa that shut its last unit this week secured $497 million from the World Bank and other funders to generate renewable energy from the site, a project that will serve as a working model for the transition away from fossil fuels. The move toward cleaner energy is particularly complex in South Africa, which has chronic electricity shortages, is the world’s 13th-biggest source of greenhouse-gas emissions and has one of the highest unemployment rates. State-owned utility Eskom Holdings SOC Ltd. generates more than 80% of the nation’s power from coal, produced from mines that employ about 90,000 workers.
/jlne.ws/3UHwbnR

Institutions

Qontigo licenses iSTOXX World Min Vol ESG Index to LGIM for pension fund mandate
Press Releases – Qontigo
Qontigo has licensed the newly launched iSTOXX World Min Vol ESG Index to Legal & General Investment Management (LGIM). The index will be used for a large pension fund mandate. This index is based on STOXX’s broadest equity universe, the STOXX World AC (All Countries), including both Developed and Emerging Markets and incorporates both proprietary ESG data provided by LGIM and data from ISS ESG.
/jlne.ws/3zGBmw4

Middle Eastern Investors May Own A Fourth In Credit Suisse, As Qatar Investment Mulls Raising Stake
Vandana Singh – Benzinga
The Qatar Investment Authority (QIA) may increase its stake in Credit Suisse Group Inc (NYSE: CS) by investing in a share sale alongside Saudi National Bank. Saudi National Bank will be joined by two other investors in the share placement, including QIA, which already owns 5% of Credit Suisse stock. Credit Suisse’s largest investor, Harris Associates, will not take part in the share placement but is expected to buy more stock as part of the rights issue, Financial Times reported citing people with knowledge of the deal.
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Hedge Fund Billionaire Och Fires Back at Sculptor Over Board Statement
Dan Och
Dan OchPhotographer: Rick Maiman/Bloomberg
ByKatherine Burton
Hedge fund founder Dan Och rebuked the board of Sculptor Capital Management over comments it made this week in defense of Chief Executive Officer Jimmy Levin. Och pushed back against a statement that he knew Harvard University had “exonerated” Levin two decades ago over an accusation of sexual assault.
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Morgan Stanley Plans to Cut About 50 Investment Bankers in Asia; New York-based lender considers reducing China focused roles; Overseas China stock sales have tumbled 88% this year
Cathy Chan – Bloomberg
Morgan Stanley is considering cutting about 50 investment banking jobs in the Asia Pacific after dealmaking in the region plunged this year, people familiar with the matter said. The New York-based bank plans to reduce a significant number of its China-focused banking roles, mostly from sector teams, and may involve a handful of capital markets positions, the people said, asking not to be identified because the matter is private. The cuts could start this month, they said.
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Credit Suisse to Extend Global Job Cuts to Wealth Next Week; Global private banking dismissals set to start in Asia Pacific; Bank signaled during overhaul announcement it plans 2,700 cuts
Denise Wee, Ambereen Choudhury, and Marion Halftermeyer – Bloomberg
Credit Suisse Group AG is planning a fresh round of job cuts at the global wealth management business starting next week, adding to dismissals that already started at the investment bank, according to people familiar with the matter. The Swiss lender is preparing to notify affected personnel, mostly support staff and investment advisors at this stage, as soon as Monday, the people said, asking not to be identified discussing confidential information. In Asia Pacific, some wealth teams could see cuts of about 10% of headcount, two people said.
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SocGen Traders Post Strong Quarter as Results Top Estimates; Fixed income unit sees revenue jump 34% in third quarter; SocGen is transitioning to a new CEO after 15-year Oudea era
Alexandre Rajbhandari – Bloomberg
Societe Generale SA posted a surge in debt trading in the third quarter and eked out a gain in equities where peers struggled, helping drive net income almost 50% higher than analyst estimates. The Paris-based bank’s fixed-income and currencies trading revenue jumped 34% in the three months through September, beating the result posted by rival BNP Paribas SA and 23% average gain across major Wall Street banks. An unexpected 1% increase in equities trading helped propel net income to €1.5 billion, compared with estimates of just over €1 billion. SocGen shares jumped as much as 5.4% at the start of trading in Paris, paring losses this year to 18%.
/jlne.ws/3UsOJbk

Wellness Exchange

Pfizer Says New Covid Booster Works Better Than Old One In Study; Company’s results contrast with data from Harvard and Columbia; In people over 55, new shot made more antibodies than old shot
Robert Langreth – Bloomberg
Pfizer Inc. said its bivalent vaccine bolstered protective antibodies against the dominant omicron strains substantially more than its original booster in people older than 55 years old, suggesting the new booster may provide an enhanced level of protection. In a trial, Pfizer and its partner BioNTech SE compared blood samples from 36 people older than 55 who had received the bivalent booster to a control group of people over 55 who had received a fourth dose of the original shot. One month later, antibody levels against the BA.4 and BA.5 variants were four-fold higher in people who had received the bivalent shot when compared with people who had received another dose of the original vaccine, the companies said in a statement.
/jlne.ws/3h5sM3r

China to make ‘substantial’ COVID policy changes soon – ex-govt expert
Reuters
China will make substantial changes to its “dynamic-zero” COVID-19 policy in coming months, a former Chinese disease control official told a conference hosted by Citi on Friday, according to a recording of the session heard by Reuters. Zeng Guang, former chief epidemiologist at the Chinese Centre for Disease Control and Prevention who has remained outspoken on China’s COVID fight, said the conditions for China opening up were “accumulating”, citing new vaccines and progress the country had made in antiviral drug research.
/jlne.ws/3U7sqrQ

Reports say China aiming for less disruptive COVID policies
Joe McDonald – Associated Press
Chinese officials are trying to quell an outcry over the death of a 3-year-old boy from a quarantined residential compound that added to public anger at anti-virus controls that have confined millions of people to their homes.
/jlne.ws/3UnrZt5

Patient Infected With Covid for 411 Days Is Finally Cured
Alex Millson – Bloomberg
A kidney transplant patient who suffered with Covid-19 for more than a year has finally been cured. The patient, now aged 59, first tested positive after getting a new kidney in December 2020. The drugs he needed to prevent his body from rejecting the organ weakened his immune system, however, and he couldn’t shake off the virus. He tested positive intermittently until January 2022, despite receiving three vaccination shots.
/jlne.ws/3E2ONsW

Singapore Says Covid-19 Wave Subsiding, Rolls Out More Boosters
Janine Phakdeetham – Bloomberg
Singapore’s recent Covid-19 wave is subsiding, according to the government task force coordinating the city-state’s pandemic response. The Omicron XBB variant-driven wave, which averaged 8,000 cases a day at its mid-October peak, is now averaging fewer than 4,000 cases daily, according to Ministry of Health data. Singapore’s MOH said 99.7% of those who got Covid over the last four weeks reported mild or no symptoms.
/jlne.ws/3U3V9h2

Regions

China’s Covid Outbreak Worst Since May as Lockdowns Persist
Bloomberg News
China’s daily local Covid infection rate soared to its highest level since early May, with lockdowns sweeping across the nation. There were 3,800 new cases reported for Thursday, a 22% jump from the day before and the highest since the country emerged from its biggest outbreak in the spring, according to the National Health Commission. A flareup in the southern factory hub Guangzhou continue to accelerate after at least one district in the city halted in-person schooling and dining-in, with 572 domestic infections reported on Friday.
/jlne.ws/3zIuoqp

India says Xiaomi misled Deutsche Bank on ‘illegal’ royalty payments
Aditya Kalra and Munsif Vengattil – Reuters
Indian investigators have alleged Chinese smartphone maker Xiaomi Corp’s India unit misled its banker Deutsche Bank AG for years by claiming it had an agreement for payment of royalties when it had none, legal documents showed. Xiaomi has locked horns with India’s financial crime fighting agency, the Enforcement Directorate, since it froze $670 million of the company’s bank assets saying a probe found the smartphone seller made “illegal remittances” to U.S. chip firm Qualcomm and others in the “guise” of royalties.
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‘An Empty Shell of What It Used to Be’: Asia’s Gambling Mecca Gets a China-Backed Makeover
Chad de Guzman – Times
A pedestrian looks on as she walks in a street in the historical centre in Macau on Oct. 10. Credit – Eduardo Leal-AFP/Getty Images Although the lights are still on along the popular Cotai strip, the throngs of people that used to pour in and out of Macau’s many hotels and casinos are no longer there. In the gambling capital of the world, many tables today sit empty, with entire sections of some casinos completely closed off due to lack of business.
/jlne.ws/3WzPjFN

Japanese Trading Houses Reaping Bumper Profits From Commodities; Sumitomo, Marubeni raise annual profit guidance to records; Warren Buffett’s Berkshire Hathaway an investor in the houses
Masumi Suga – Bloomberg
Some of Japan’s biggest trading houses reported bumper profits and flagged more to come as they benefited from higher energy and commodities prices. Sumitomo Corp. raised its full-year net income forecast by almost half to a record of 550 billion yen ($3.7 billion). Marubeni Corp. upgraded its profit guidance to an all-time high, while Itochu Corp.’s second-quarter profit beat analyst estimates.
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UK Considers Hiking Capital Gains Tax to Help Plug Fiscal Hole; Officials look at cutting capital gains allowances and reliefs; Chancellor Hunt to announce economic package on Nov. 17
Joe Mayes – Bloomberg
Chancellor of the Exchequer Jeremy Hunt is considering increasing the headline rate of capital gains tax as he and Prime Minister Rishi Sunak seek ways to plug the UK’s fiscal hole. Hunt, who will deliver a major economic statement on Nov. 17, is also looking at cutting capital gains tax allowances and reliefs, according to two officials familiar with the matter who spoke on condition of anonymity because no final decisions have been made. A Treasury spokesperson said they wouldn’t speculate on tax changes.
/jlne.ws/3U7XB6n

Miscellaneous

CNBC Cancels Shepard Smith’s Show; The network said the former Fox News host will be leaving CNBC after two years
Joseph De Avila – The Wall Street Journal
CNBC has canceled “The News with Shepard Smith” in an effort to focus more on business-news coverage, the network said. The network, a unit of Comcast Corp.’s CMCSA -1.71%decrease; red down pointing triangle NBCUniversal, plans to replace the 7 p.m. show with a business news program at the beginning of next year, KC Sullivan, president of CNBC, said in a memo to staff sent Thursday. “The News with Shepard Smith” will air its final show later this month, he said. Adding more business news content will help to strengthen the network’s brand, Mr. Sullivan said. A spokesman for Mr. Smith didn’t immediately respond to a request for comment. Mr. Smith came to CNBC two years ago following a 23-year career at Fox News.
/jlne.ws/3fvQbeb

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