The rise of crypto laundries: how criminals cash out of bitcoin

May 28, 2021

First Read

$42,176/$300,000 (14.1%)

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Hits & Takes
John Lothian & JLN Staff

There was a huge trade in the U.S. Treasury Bond roll on Wednesday that has been classified as “disruptive” by one market participant who contacted JLN. There were 8 orders of 29,999 all sent to the CME Group’s Globex match engine in a manner that made them sequential in the order book for the ZB calendar spread and caused the spread to move 150 ticks. The clip size or order size limit for such orders is 30,000, so the bunching of the orders just under that size appears to have been constructed to avoid the order size limit. My source said this type of sequencing or orders is not something available through commercial trading platforms, but rather something specifically designed to bunch the orders to avoid the exchange order size. The order tore through the available liquidity, moving the spread dramatically, causing the CME to adjust trades to about a 30 tick move. While significant moves in the calendar spread can occur if there are changes in the “cheapest to deliver,” this move was a multiple of any such volatility.

If you have information about this trade, or any analysis of the data, and are willing to share it with JLN, please email it to me at johnlothian@johnlothian.com.

A CME representative, when asked to comment on the trade, gave a generic response. They told JLN they could not comment on the specifics of any trades, then added: “We have a number of procedures and systems in place to monitor for all disruptive trading practices. We proactively monitor the market and vigorously prosecute violations of our rules.”

Invesco is running banner advertisements that say, “The Innovators of Nasdaq.” The link takes you to a page that says, “New ways to access the innovators of Nasdaq; Invest in NASDAQ 100 and NASDAQ Next Gen 100 portfolios with Invesco.” It was eye catching. — Invesco

CME Group board member Dan Glickman is the focus of a discussion with Bipartisan Policy Center President Jason Grumet about his new book. Glickman is a senior fellow at the Center and a former secretary of agriculture and will address his forthcoming book, “Laughing at Myself: My Education in Congress, on the Farm, and at the Movies.” The event is on June 1 from 1 p.m. to 2 p.m. ET. — Bipartisan Policy Center

In London, Santander has renewed its sponsorship of London Cycle Hire until May of 2025, Bloomberg reported. They will introduce e-bikes to its roster next summer. Interestingly, “In March, the Santander Cycles scheme passed the milestone of 100 million hires, while 24-hour membership registrations rose by 193% from March 2020 to March 2021 with people opting for alternative modes of transport amid increased social distancing efforts during the coronavirus pandemic.” — Bloomberg

Reuters has blinked and paused its plans for a paywall after its recent spat with LSE over Refinitiv customer access. The London Stock Exchange Group, which bought Refinitive from Reuters, complained the move would breach their news supply agreement. — FT

Exchange Analytics is offering cybersecurity training for all National Futures Association members, investment companies and advisors. The NFA’s “Information Systems Security Programs” Interpretative Notice requires all NFA members to provide their employees with cybersecurity training upon hiring and periodically during their employment. Additionally, FINRA evaluates a firm’s approach to cybersecurity risk management by evaluating several factors, including staff training. For more information, click HERE.

There will be no JLN or JLN Options on Monday as we will be off for the Memorial Day holiday. Have a great weekend and stay safe.

There were no new donations to the JLN MarketsWiki Education GoFundMe campaign. Look for more videos from the Open Outcry Traders History Project next week.

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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Chuck Mackie wrapped up his coverage of Consensus 2021 with his report on Day Four, “Three takeaways from the fourth and final day of Consensus from Coindesk — plus a few extra thoughts.” You can read it here. ~SR

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Register for the virtual Asset Management Derivatives Forum
FIA.org

FIA and SIFMA AMG are bringing you a virtual take on the Asset Management Derivatives Forum in 2021. Join us for virtual programming on June 8 and 9, during which market participants from all sides of a trade and leading regulators will examine the latest developments impacting the use of derivatives by asset managers. This year’s keynote speakers are Dan Berkovitz, commissioner at the Commodity Futures Trade Commission, Catherine McGuinness, chair of the policy and resources committee for the City of London, and Allison Herren Lee, commissioner at the U.S. Securities and Exchange Commission. Learn more and register!

Sign Up Here »

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FIX and DCA See Rosy Future for Digital Assets
Anna Lyudvig – Traders Magazine
In the last 12 months, there has been a sea change in the crypto markets with a shift from the sentiment-driven retail model and speculative trading to a more mature, long-term investment approach, as new institutional players begin allocating a portion of their investments to crypto assets, Tony Pettipiece, Chair of the Global Digital Asset & Cryptocurrency Public Policy & Regulation Committee, said.
/bit.ly/3bYJxYM

*****This is significant “in the weeds” type of progress.~JJL

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Wedbush Futures Expands Clearing Footprint in Support of New Futures Exchange, FairX Slated for Launch in June
Wedbush Futures
Wedbush Futures, one of the largest non-bank Futures Commission Merchants (FCMs) in the United States, announces it has expanded its clearing footprint to include support of FairX, a newly announced futures exchange for retail investors, offering virtually around-the-clock trading and low-cost access to the most liquid asset classes in the global futures industry. This exchange represents a new opportunity in the marketplace for Wedbush and its clients. FairX expects to launch in June.
/bit.ly/3hUYwXu

*****Wedush and other brokers are showing a lot of support for this new exchange.~JJL

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Earnings Announcements & Retail Participation: A deep-dive into after-hours trading
Stefanos Bazinas – NYSE
The surge in market volatility and trading volumes since the onset of the pandemic in March 2020 has impacted numerous aspects of equity market trading. One less-studied area has been after-hours trading. After-hours has also seen changes in order flow trends and influences, and here we examine trends and shifts occurring in these sessions.
/bit.ly/2SwFc8f

*****There is a thought leadership war going on between NYSE and Nasdaq to inform the public about the nuances of the markets. I like it.~JJL

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Jay-Z to address Wall Street executives at annual investors conference
Will Feuer – NY Post
Jay-Z will rap to some of Wall Street’s biggest names next month at the Robin Hood Foundation’s annual investors conference, event organizers confirmed. The Brooklyn-born rapper is expected to discuss his business career, including his recent deal to sell music-streaming service Tidal to Jack Dorsey-owned Square. That deal also had him added to the financial services company’s board of directors.
/bit.ly/3p5MnAv

******They had to go through the phone book from A to Z before getting Jay-Z.~JJL

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Thursday’s Top Three
Our top story Thursday was ‘God Told Me to Put Money Into Hertz’: Small Investors Are Winning Big Again, from the Wall Street Journal. Second was – for the second time in the top three – the 1993 promotional video from the CBOT on YouTube. Third was How to Talk Retirement Savings With Your Spouse, also from the Wall Street Journal.

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Lead Stories

The rise of crypto laundries: how criminals cash out of bitcoin; Criminals are locked in battle with Forensics firms tracking how Treasure Men, privacy wallets and gift cards are used to turn virtual hauls into hard cash
Hannah Murphy – FT
In the world of online crime, anonymous cryptocurrencies are the payment method of choice. But at some point, virtual hauls need to be turned into hard cash. Enter the “Treasure Men”. Finding a Treasure Man is easy if you know where to look. They are listed for hire on Hydra, the largest marketplace on the dark web by revenues, a part of the internet that is not visible to search engines and requires specific software to access.
/on.ft.com/3frYtRe

Ark’s Wood Says Bitcoin Can’t Be Shut Down, Rebuts ESG Fears
Sunil Jagtiani – Bloomberg
Star investor says regulators will warm to crypto innovation; Focus on energy use contributed to Bitcoin’s slide, Wood says
Star investor Cathie Wood has a message of reassurance for Bitcoin investors amid the din of ever harsher regulatory rhetoric: officials won’t be able to make the largest cryptocurrency go away. Tough talk against digital tokens from China and calls for greater scrutiny in Europe and the U.S. have contributed to a slump in Bitcoin, but Wood said the virtual currency is “already on its way and it’ll be impossible to shut it down.”
/bloom.bg/3ftXdwX

Bank of America to Bring Top NYC Managers Back to Office on June 1
Jennifer Surane – Bloomberg
Bank of America Corp. plans to bring top New York managers back to the office starting June 1, as the proliferation of vaccines across the U.S. clears the way for employees to return. “Our goal is by after Labor Day to effectively be back to where we were in January of 2020,” Chief Executive Officer Brian Moynihan said Thursday while testifying before the House Committee on Financial Services. The bank has started to bring its vaccinated employees back after staff voluntarily notified the firm that they’ve had the shots, according to Moynihan.
/bloom.bg/2QZ4rj5

Banks Flex Muscle With $23 Billion Gain as Congress Scolds CEOs
Hannah Levitt, Robert Schmidt and Jesse Hamilton – Bloomberg
Lenders endure two days of hearings without major missteps; Dimon sticks out as most outspoken of Wall Street leaders
Wall Street CEOs spent two days being grilled by lawmakers. Their companies gained more than $23 billion in market value. The heads of the six biggest U.S. banks absorbed Democrats’ jabs over their firms’ treatment of consumers, climate change and for not doing enough to promote racial justice. Republicans chimed in, too, bashing lenders for shunning politically unpopular businesses in the U.S., while financing Chinese companies.
/bloom.bg/3vyZ0GH

Archegos fallout hits market for blank-cheque companies; Prime brokers extend less of the leverage that hedge funds relied on to juice Spac returns
Ortenca Aliaj and Joshua Franklin – FT
The market for special purpose acquisition companies has become an unexpected casualty of the Archegos Capital Management scandal, as banks rein in lending to hedge funds that had invested heavily in blank-cheque companies.
/on.ft.com/3ftHzSp

Why young investors bet the farm on cryptocurrencies; The racy, high-risk asset class has filled a void of investment advice for the average young person
Claer Barrett – FT
“I’ll either be rich, or wrong.” This is how Sam, a 29-year-old cryptocurrency enthusiast I interviewed on this week’s Money Clinic podcast, summarised his strategy for investing the last £2,000 of his savings in a hugely volatile and unregulated asset class.
/on.ft.com/34nJmlw

What are cryptocurrencies and stablecoins and how do they work? The digital tokens have grown into a popular and often highly volatile asset class
Eva Szalay and Siddharth Venkataramakrishnan – FT
Cryptocurrencies, which first emerged in the wake of the global financial crisis, offered a vision of money free from central bank control. Since their creation, they have boomed into a highly volatile and divisive asset class.
/on.ft.com/34pGDbd

What the soaring cost of breakfast may signal for global food price inflation; The prices of raw materials that go into morning staples have surged since the start of the pandemic
Chelsea Bruce-Lockhart and Emiko Terazono – FT
The cost of raw materials that go into making breakfast staples have roared higher since the pandemic began — raising fears that a broad commodity boom could push up global food prices for consumers.
/on.ft.com/3vHYpTn

Swiss prepare for EU chill after quitting market access talks; Many felt the new agreement was one-sided and gave too much away to Brussels
Sam Jones and Ben Hall – FT
In Brussels there was shock and anger. In Switzerland, quiet celebration and relief — but, for some, doubts about what exactly comes next. On Wednesday, Bern announced it was formally withdrawing from negotiations to codify future relations with the EU into a single overarching “framework agreement” — a back-and-forth exchange that has dominated an increasingly fraught relationship with Brussels since 2014.
/on.ft.com/3fvnDi8

Judge Allows Robinhood Customer-Protection Case to Proceed; Massachusetts court turns down brokerage’s request for a preliminary injunction in a regulatory action over its duties to investors
Caitlin McCabe – WSJ
A Massachusetts judge on Thursday gave state securities regulators a green light to proceed with their case against Robinhood Financial LLC, ruling that it wouldn’t be in the public interest to block an administrative hearing on allegations that the online brokerage doesn’t protect inexperienced investors.
/on.wsj.com/34pOYvx

Swiss prepare for EU chill after quitting market access talks; Many felt the new agreement was one-sided and gave too much away to Brussels
Sam Jones and Ben Hall – FT
In Brussels there was shock and anger. In Switzerland, quiet celebration and relief — but, for some, doubts about what exactly comes next.
/on.ft.com/3uv4tx0

Canadian Banks Signal Covid All-Clear Earlier Than Expected
Kevin Orland – Bloomberg
RBC, TD both had surprise releases of credit-loss provisions; The firms are ‘lot more positive than they were,’ analyst says
Canada’s biggest banks are signaling that financial issues from the Covid-19 crisis are largely in the rear-view mirror in North America — and earlier than analysts had expected. After a year of stockpiling record amounts of capital to protect against a wave of loan defaults, Royal Bank of Canada and Toronto-Dominion Bank — the country’s two largest banks — reversed course last quarter. Toronto-Dominion on Thursday reported a surprise C$377 million ($312 million) release of provisions for credit losses for its fiscal second quarter, while Royal Bank released C$96 million. Analysts had projected both lenders would continue setting aside capital to absorb potentially soured loans.
/bloom.bg/3ft2lBy

FIA Seeks Additional Clarity on China’s “Historic” Futures Law
Manesh Samtani – Regulation Asia
FIA is requesting additional clarity on settlement finality and proposing that the protections in the new futures law be further expanded. FIA has submitted comments to China’s NPC (National People’s Congress) in support of the new draft Futures Law, saying the “historic” milestone will help to develop a more robust and liquid futures market for both Chinese and international customers.
/bit.ly/3fqwHES

Analysis-New York could profit from Brexit tussle over euro derivatives
Huw Jones – Reuters
A hasty shift in euro-denominated derivatives clearing from London to Frankfurt to meet European Union post-Brexit demands may drive business to New York and shackle the 27-member bloc’s capital market, banks warn.
/reut.rs/34rSCFs

Europe Probes Bankers Clinging to London Jobs: Beyond Brexit
Lizzy Burden – Bloomberg
Big international banks in the EU including Goldman Sachs, Citigroup and Barclays are facing a probe by the European Central Bank over whether they rely too much on London staff, people familiar with the matter told Steven Arons and Nicholas Comfort. It adds to a sense that thousands more high-paying finance jobs may end up drifting out of London for a variety of reasons. Deutsche Bank highlighted that trend earlier in the week with a decision to shift a quarter of its U.K. corporate banking staff to the EU and Asia, a move it said wasn’t directly related to Brexit.
/bloom.bg/3usg0Ni

Boston Consulting Group Names Christoph Schweizer CEO; Rich Lesser will step down in the fall after nearly nine years as leader of the consulting giant
Patrick Thomas – WSJ
Rich Lesser, the chief executive of Boston Consulting Group, will step down in the fall from his role after nearly nine years as leader of the consulting giant, and longtime executive Christoph Schweizer will take over as CEO, the firm said in a letter to partners.
/on.wsj.com/2RQf3kI

Coronavirus

Brazil Let 70 Million Shots Get Away and Sealed Its Covid Fate
Julia Leite, Andrew Rosati and Simone Preissler Iglesias – Bloomberg
Bolsonaro and ministers are under withering attack in congress; Pfizer says its efforts to sell Brazil vaccines got no reply
Last August, when Brazil had emerged as among the worst hit nations by Covid, Pfizer Inc. offered the health ministry to set aside as many as 70 million doses of the vaccine it was developing. It got no answer. So it made the offer again. And then a third time.
/bloom.bg/3oWYiAu

How Europe Can Lead the Way Out of Covid Travel Confusion; The European Union can develop travel guidelines for its own region that could set a standard for the rest of the world. Here are four places to start.
Sam Fazeli and Max Nisen – Bloomberg
Vaccines are a huge help in the Covid fight, paving the way for reopenings in towns, cities and countries around the world. But when it comes to cross-border commerce and travel, we need more than shots to get back to some kind of normal. Nowhere is that more evident than in the European Union, where varying standards and restrictions among member countries make travel confusing within the region, never mind between EU destinations and elsewhere.
/bloom.bg/2SEq34H

China’s Sinopharm Publishes Awaited Covid Vaccine Study Details
Bloomberg News
Medical journal provides first detailed look at a Chinese shot; China’s vaccines have been criticized for lack of transparency
Vaccines from China’s Sinopharm successfully contained Covid-19, according to a study published in a prestigious U.S. medical journal, the first time detailed findings from a late-stage trial of a Chinese shot have appeared in the scientific literature.
/bloom.bg/3oXF5yJ

Japan Widens Vaccine Center Access as Thousands of Slots Remain
Gearoid Reidy – Bloomberg
Elderly in nearby prefectures can book slots in central Tokyo; Extra slots that opened up for over-65s filled within hours
Japan brought forward a plan to expand access to a large-scale Covid-19 vaccination center in central Tokyo after slots were left unfilled for next week.
/bloom.bg/3p5yEJZ

Philippines Halts Sending Migrant Workers to Saudi Arabia
Andreo Calonzo – Bloomberg
The Philippines has suspended deploying workers to Saudi Arabia, its top destination for overseas labor, due to reports that migrants are being asked to shoulder costs of Covid-19 quarantine and insurance.
/bloom.bg/2SErVdJ

Get Vaccinated in Hong Kong, Win $1.4 Million New Apartment
Shawna Kwan and Felix Tam – Bloomberg
Sino Group, Chinese Estates are offering condo as a prize; Hong Kong is grappling with coronavirus vaccine hesitancy
Hong Kong developers are offering a $1.4 million apartment as a prize for residents who have been vaccinated for Covid-19, as local authorities grapple with widespread reluctance to get inoculated. Sino Group’s philanthropic arm Ng Teng Fong Charitable Foundation and Chinese Estates Holdings Ltd. are offering a brand-new apartment in their Grand Central project in the Kwun Tong area, the companies said in a statement Friday.
/bloom.bg/34tv4jg

WHO reboots IP sharing scheme for Covid shots, drugs and tests; Member states urged to engage with vaccine makers to increase poorer nations’ access to treatment
Donato Paolo Mancini – FT
The World Health Organization is moving to reboot its intellectual property sharing scheme as vaccine shortages threaten poorer nations’ attempts to emerge from the pandemic and as the debate over patents intensifies.
/on.ft.com/34nFXmV

70 Percent Covid Vaccination Rate May Be in Reach, New Poll Suggests; The survey found big increases over last month in Latinos getting the shot and in unvaccinated people who say they have made an appointment.
Jan Hoffman – NY Times
A new poll suggests the United States could be on track to vaccinate at least 70 percent of the adult population against Covid-19 by this summer. In the latest survey by the Kaiser Family Foundation, 62 percent of respondents said they had received at least one dose of a vaccine, up from 56 percent in April. At the same time, about a third of those categorized as “wait and see” reported that they had already made vaccine appointments or planned to do so imminently.
/nyti.ms/3yOhvsW

China’s Vaccination Surge Could Accelerate Asian Recovery From Covid; Faster Chinese vaccination could accelerate the return of sorely needed tourism to the battered economies of Southeast Asia
Mike Bird – WSJ
After a slow start, China’s vaccination campaign is roaring into action and now accounts for around half of the doses being distributed daily around the world. If anything like that pace holds, it could overturn expectations of the pace of recovery in Asia and emerging markets globally.
/on.wsj.com/3i7cLIC

Concerns about missing work may be a barrier to coronavirus vaccination
Alyssa Fowers – Washington Post
Nearly half of adults in the United States who have not received a coronavirus vaccine are concerned about missing work as a result of side effects from the shot, according to a Kaiser Family Foundation poll released this month. The findings highlight a key obstacle to vaccination, particularly for the 25 percent of American workers who do not have any paid sick leave.
/wapo.st/3wDZhbx

Yes, we’ll probably need coronavirus booster shots. But which one?
Carolyn Y. Johnson – Washington Post
U.S. scientists are expanding efforts to evaluate when fully vaccinated people will need booster shots — and, if so, whether people can switch brands — in the latest chapter of the global quest to stop the pandemic.
/wapo.st/3hYtLAO

Why India Should Buy Chinese Vaccines; It may hurt to go to a rival for help, but so what? Saving lives means making an approach to Beijing.
Andy Mukherjee – Bloomberg
India’s vaccine strategy has flopped. A dismissive attitude toward the second Covid-19 outbreak that has raged uncontrolled, and a mistaken belief that indigenously made shots would be equal to the task of inoculating a billion adults, have left the nation scrambling. Efforts are under way to procure supplies from Pfizer Inc., Moderna Inc. and Johnson & Johnson. But their order books are full.
/bloom.bg/3yJwFiN

India’s Covid-19 Crisis Leaves Nation in Grief
Families hunting for oxygen, a patient dying in a hospital parking lot; ‘we’ve seen such horrors’ says a crematorium worker
Niharika Mandhana – WSJ
Jayant Malhotra says he won’t ever forget the sight of the bodies. They arrived in a relentless, urgent flow for cremation—a service he and his father offer in New Delhi free-of-charge for victims of Covid-19. Exhausted workmen prepared row upon row of funeral pyres, struggling to keep pace with the scale of death as the solemn Hindu rite became a symbol of a besieged nation’s shared grief.
/on.wsj.com/2TocM0K

Covid-19 Vaccinations in the South Are Among Lowest in U.S.; States work to get more shots in arms as some public-health experts warn of possible summer outbreaks
Talal Ansari and Melanie Grayce West – WSJ
More than a month after Covid-19 shots were made available to all U.S. adults, national data show a lag in vaccination uptake across the South, a development that some epidemiologists and public-health officials worry could lead to a rise in infections this summer.
/on.wsj.com/3vBwhRO

Covid’s Deadliest Phase May Be Here Soon
Zeynep Tufekci – NY Times
If world leaders don’t act now, the end of the Covid pandemic may come with a horrible form of herd immunity, as more transmissible variants that are taking hold around the world kill millions. There’s troubling new evidence that the B.1.617.2 variant, first identified in India, could be far more transmissible than even the B.1.1.7 variant, first identified in Britain, which contributed to some of the deadliest surges around the world.
/nyti.ms/3vx7myv

The U.S. May Never Hit the Herd Immunity Threshold. That’s OK.
Erin A. Mordecai, Mallory J. Harris and Marc Lipsitch – NY Times
Half of Americans have now received at least one dose of a Covid-19 vaccine, and with children ages 12 to 15 now eligible for immunizations, the United States appears to be getting the coronavirus pandemic under control. But despite the tremendous progress, it’s still not clear that the nation will ever truly reach the herd immunity threshold — the point at which enough people in a population are immune to a pathogen to limit its spread.
/nyti.ms/3vx7Ogn

Exchanges, OTC and Clearing

Intercontinental Exchange Chairman & CEO Jeffrey C. Sprecher to Present at the Piper Sandler Global Exchange and FinTech Conference on June 10
Intercontinental Exchange, Inc.
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology and market infrastructure, announced today that Jeffrey C. Sprecher, Chairman and CEO, will present at the Piper Sandler Global Exchange and FinTech Conference. The presentation will take place on Thursday, June 10 at 10:00 a.m. ET. The presentation will be available live and in replay via webcast and can be accessed in the investor relations and media section of ICE’s website at http://ir.theice.com/.
/bit.ly/3c16laf

Shanghai Futures Exchange to curb ‘unreasonable’ price swings – chairman
Emily Chow – Reuters
Shanghai Futures Exchange said on Wednesday it would “vigorously investigate abnormal transactions” and curb unreasonable price swings amid recent large moves in commodities prices in China.
/reut.rs/3bYB0oA

Jos Dijsselhof supports market access by small and medium-sized companies as key to the recovery
BME
The CEO of SIX and Chairman of BME is optimistic about IPOs in the coming months and defends the transformative power of technology; The Medcap Forum concludes its seventeenth edition, the second held remotely, with 3,600 connections to its panels and discovery meetings via streaming; The importance of financial markets as a means of financing for companies of all sizes was the central idea of the third and last day of the event;
/bit.ly/3wCHqSf

The Federation of Euro-Asian Stock Exchanges holds “Meet the Market with FEAS | The Egyptian Capital Market” Virtual Event
Federation of Euro-Asian Stock Exchanges
On May 27th, 2021, The Federation of Euro-Asian Stock Exchanges (FEAS), alongside with its members the Egyptian Exchange and Misr for Central Clearing, Depository and Registry, held the “Meet the Market with FEAS | The Egyptian Capital Market” virtual event.
/bit.ly/3urNMmb

More Inclusive Opening Auctions Make Better Markets for All; No-fee investing and mobile-trading apps have reforged markets, reducing trading friction and attracting more retail investors than ever before. But since much of that new activity occurs off-exchange, there is a missed opportunity.
Chuck Mack – Nasdaq
No-fee investing and mobile-trading apps have reforged markets, reducing trading friction and attracting more retail investors than ever before. But since much of that new activity occurs off-exchange, it is inaccessible to institutional investors, a missed opportunity to improve prices and certainty of execution for all market participants.
/bit.ly/3ur8QJp

Bursa Malaysia Derivatives Records New All-Time High In Daily Trading Volume For the FTSE Bursa Malaysia KLCI Futures
Mondovisione
The FTSE Bursa Malaysia KLCI Futures (“FKLI”) traded on Bursa Malaysia Derivatives recorded a new all-time high in daily trading volume on 27 May 2021. The derivative exchange recorded a volume of 66,887 contracts, surpassing the previous record of 65,000 contracts registered precisely a year ago on 27 May 2020. The FKLI provides market participants, both institutional and retail investors, exposure to the underlying FTSE Bursa Malaysia Kuala Lumpur Composite Index (“FBM KLCI”).
/bit.ly/3i0Ig7a

Iconic Funds BTC ETN GmbH Lists Its First Bitcoin ETP At SIX
SiX
Today, SIX welcomes Iconic Funds BTC ETN GmbH as a new ETP issuer. Iconic Funds is the fourth crypto ETP issuer joining in 2021 and brings the number of crypto products offered for trading at SIX Swiss Exchange to 92.
/bit.ly/3hX30g7

Reuters delays plans for paywall after disagreement with LSE; Spat with London exchange’s Refinitiv centres on 30-year news agreement
Alex Barker – FT
Reuters News has bowed to pressure and delayed plans for a website paywall after its main customer Refinitiv, a data provider owned by the London Stock Exchange Group, complained the move would breach their news supply agreement.
/on.ft.com/3fsoJLb

Eurex extends EnLight with FX derivatives
Eurex
Eurex EnLight, the fully integrated RFQ platform, already available for most equity, equity index and fixed income options and futures tradable on Eurex, has been further extended. We spoke to Andre Eue, Head of Market Development at Eurex, and Joshua Hurley, FX Sales and Business Development at Eurex, about the enhancements.
/bit.ly/2SEWMqw

Xetra-Gold reaches a new record level of 232 tons
Deutsche Börse Group
Xetra-Gold reaches a new record level of 232 tons; Increase of 15.1 tons since the beginning of the year; Managing Director Orben: “Real asset gold rediscovered”; Europe’s largest gold security with physical deposit
The gold holdings of the exchange-traded bearer bond Xetra-Gold (ISIN: DE000A0S9GB0 ) rose to a new record of 232 tons. That is an increase of 15.1 tons over the course of the year. At the beginning of January, 216.9 tons of gold were still stored in the central vault for German securities. This makes Xetra-Gold the leading physically deposited gold security in Europe.
/bit.ly/3vuFtax

Fintech

AllianceBlock And Hedera Hashgraph Team Up To Advance The Future Of Finance; New AllianceBlock Decentralized Bridge Is Fully Integrated With The Hedera Consensus Service, Bringing Increased Transparency To Its Audit Trail
AllianceBlock
AllianceBlock, the first globally compliant decentralized capital market, today announced a collaboration with Hedera Hashgraph, the most used enterprise-grade public network for the decentralized economy. Announced at Consensus 2021, the two will join forces to advance the global financial ecosystem through DeFi solutions.
/bit.ly/3vwQRTh

Australian Fintech Firm Weighs SPAC and Other Options to Expand
Ambereen Choudhury and Nabila Ahmed – Bloomberg
Finder is working with advisory firm Highbury Partnership; Co-founder Fred Schebesta makes comments in an interview
Australian fintech firm Finder, which helps clients invest and save money, is working with an adviser on strategic options, including a sale to a blank-check company, as it seeks to expand its global footprint.
/bloom.bg/3oX21Ou

The human factor — why data is not enough to understand the world; Companies are turning to anthropology to balance the insights of algorithms and AI
Gillian Tett – FT
A couple of years ago, staff at a Google “tech incubator” called Jigsaw made an important breakthrough: they realised that while their company has come to epitomise the power of technology, there are some problems that computers alone cannot solve. Or not, at least, without humans.
/on.ft.com/34qt5w9

Gresham to acquire Electra Information Systems for $38.6 million
NewsnReleases.com
Gresham Technologies plc (LON: GHT) wholly-owned subsidiary Gresham Enterprise Storage Inc., has entered into a conditional agreement to purchase the entirety of the issued and outstanding shares of common stock of Electra Information Systems for a total cash consideration of up to US$38.6 million including up to US$9.65 million in deferred consideration.
/bit.ly/3bZIKqx

Acorns Is the Latest Fintech to Sell to a SPAC
Luisa Beltran – Barron’s
Acorns, the savings and investing app, is going public by combining with the blank-check company Pioneer Merger.
The deal, which will see Acorns trade publicly during the second half of this year, values the fintech at $2.2 billion. Firms including Wellington Management, Senator, Declaration Partners, Greycroft, TPG’s The Rise Fund, and BlackRock (ticker: BLK) are investing in a private placement that is part of the deal, a statement said.
/bit.ly/3oXalhc

US Black Business Owners Turned to Fintech to Get PPP Loans for Covid Aid
Cecile Daurat and Alexandre Tanzi – Bloomberg
Black-owned businesses were much likelier than their peers to use online lenders than traditional banks when applying for U.S. pandemic relief loans, according to a study by the Federal Reserve Bank of New York.
About one in four Black owners seeking a Paycheck Protection Program loan applied to a fintech company, more than twice the rate of Whites, Asians and Hispanics, the New York Fed said in a blog post, part of its Economic Inequality series.
/bloom.bg/3p0Pj1u

Behind every racy fintech, a sensible German saver; Greensill and Wirecard among those to have tapped into the country’s abundant deposits
Tom Braithwaite – FT
It is a paradox of modern finance. The would-be disrupters rely on banks. The risk-loving whizz-kids are in love with risk-averse Germans. Before their demise, Wirecard and Greensill Capital both owned German banks. Surviving fintechs including N26 and Klarna also fund themselves through German deposits.
/on.ft.com/3uuKvCu

Cloud9 partners with Sphere to convert voice data into electronic pricing; Sphere’s AI technology will extract trading information from Cloud9’s voice data and merges this with electronic trading.
Wesley Bray – The Trade
Cloud9 Technologies has partnered with technology firm Sphere to allow institutional traders to convert voice communications into real-time electronic pricing which can be shared across the entire organisation.
/bit.ly/3fs8SfS

Cybersecurity

The 6 Things Small Businesses Need To Know About Security
Rhett Power – Forbes
World Password Day serves as a reminder for many entrepreneurs and small business owners to prioritize—or reprioritize—cybersecurity and other protections.
Entrepreneurs and SMBs can do a lot to build strong shields and mitigate the risk of breaches, in addition to minimizing the damage if a breach occurs. To help companies develop a stronger cybersecurity posture, six security professionals provided some of their most useful advice.
/bit.ly/3wEACU7

Russian Hackers Resume U.S. Cyber Offensive, Microsoft Says
Jaime Tarabay – Bloomberg
The Russian hackers behind the SolarWinds campaign have escalated their attacks on U.S. federal agencies, think tanks and non-governmental organizations as part of intelligence gathering efforts on behalf of their government, Microsoft Corp. said late Thursday.
In a blog post, Microsoft Vice President Tom Burt said this past week’s attack — which is still ongoing — granted access to about 3,000 email accounts at more than 150 organizations by infiltrating a digital marketing service used by the U.S. Agency for International Development (USAID), called Constant Contact.
/bloom.bg/3wF25Ff

Signal Jabs at Facebook and Navigates Growing Pains as Popularity Surges
Ryan Gallagher – Bloomberg
The encrypted messaging company Signal has long been popular with activists, investigative journalists, politicians and assorted law enforcement officials because of its emphasis on privacy and security. Its growth was steady—but slow. Then came Christmas break. Employees returned from the holidays to an unexpected surge in new users that overwhelmed Signal’s servers and sent engineers racing to increase capacity.
The catalyst was a backlash against rival WhatsApp, which announced an updated privacy policy that included sharing some user account details with its parent company, Facebook Inc., turning off some of its 2 billion-plus users. Tesla Inc. Chief Executive Officer Elon Musk helped stoke the exodus, encouraging his army of Twitter followers to “use Signal.”
/bloom.bg/3uyMc1I

Better cybersecurity means finding the “unknown unknowns”
MIT Technology Review Insights
During the past few months, Microsoft Exchange servers have been like chum in a shark-feeding frenzy. Threat actors have attacked critical zero-day flaws in the email software: an unrelenting cyber campaign that the US government has described as “widespread domestic and international exploitation” that could affect hundreds of thousands of people worldwide. Gaining visibility into an issue like this requires a full understanding of all assets connected to a company’s network. This type of continuous tracking of inventory doesn’t scale with how humans work, but machines can handle it easily.
For business executives with multiple, post-pandemic priorities, the time is now to start prioritizing security. “It’s pretty much impossible these days to run almost any size company where if your IT goes down, your company is still able to run,” observes Matt Kraning, chief technology officer and co-founder of Cortex Xpanse, an attack surface management software vendor recently acquired by Palo Alto Networks.
/bit.ly/3uoCSNW

Cryptocurrencies

‘Irresponsible’ bitcoin ads banned for being misleading
Jack Denton – MarketWatch
An advertising campaign telling people that it was “time to buy” bitcoin has been banned for being misleading, after U.K. regulators ruled that it “irresponsibly” suggested investing in the cryptocurrency was straightforward.
/on.mktw.net/34npxuz

$10,000 Cryptocurrency Tax-Reporting Rule Won’t Change Much; The new Biden compliance plan isn’t the best way to help the IRS improve collections. Writing clearer rules would help more.
Alexis Leondis – Bloomberg
The administration of President Joe Biden wants the Internal Revenue Service to do a better job of collecting from taxpayers who trade cryptocurrency. But the Treasury Department’s new proposal to require reporting to the IRS when businesses receive at least $10,000 in a virtual currency won’t do much to improve tax compliance.
/bloom.bg/34qkXf4

NFT for Nobel Prize-Winning Data to Be Auctioned by UC Berkeley
Susan Decker – Bloomberg
University to sell data for gene editing and immunotherapy; Proceeds to fund further scientific research, university says
Digital data related to Nobel Prize-winning inventions for gene editing and cancer immunotherapy will be sold connected to non-fungible tokens next week, a novel way for the University of California at Berkeley to raise money for research.
/bloom.bg/3hX4pTV

China’s crackdown on bitcoin mining is getting real
Jane Li – Quartz
After barring the use and trading of cryptocurrency, Beijing has indicated that it will turn next to cryptocurrency mining. China’s vice-premier Liu He last Friday said the government would clamp down on bitcoin mining and trading to achieve financial stability but stopped short of revealing specific policies. This week, Inner Mongolia, an autonomous region in northern China, issued draft guidelines on its plans to ban crypto mining, offering the first details about how authorities intend to execute this latest stage of the crypto crackdown.
/bit.ly/3fR8dn7

Nvidia’s Cryptocurrency Puzzle Gets Less Vexing; Uncertainty stems from use of chip maker’s graphics processors by ‘miners’
Dan Gallagher – WSJ
“Not like last time” can be a dangerous phrase in business. But in the case of Nvidia and its relationship with crypto-miners, it also happens to be true.
/on.wsj.com/3g7oBAf

Sorry, Bitcoin: CFOs say they aren’t adopting crypto
Lance Lambert – Fortune
For cryptocurrencies to reach the levels that bulls predict (we’re looking at you, Cathie Wood), crypto will need to engrain itself deeply into the financial system.
One way that could happen is if businesses actually begin to accept crypto as a form of payment. There’s been some progress toward that this year, with PayPal and Starbucks offering people ways to spend cryptocurrency, but the biggest splash was Tesla’s February announcement that it would start accepting Bitcoin payments. Since then, the company has reversed that move citing environmental concerns (even though it says it will continue holding Bitcoin on its balance sheet).
/bit.ly/34rK2qc

Crypto: Bitcoin and Ethereum are now, ‘DAOs’ are the future
Robert Hackett – Fortune
As the world lurches through another cryptocurrency hype cycle, it’s wise—and refreshing—to take a break from the wildly swinging price charts of Bitcoin, Ethereum, and any number of other crypto coins, to consider how we got here and where this zany industry may be headed.
/bit.ly/2R5DA5a

Politics

Dimon Sharpens Criticism of Biden’s Tax Hike Proposal
Steven T. Dennis – Bloomberg
JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon sharply criticized U.S. President Joe Biden’s proposed tax hikes, which are aimed at people making more than $400,000 as well as corporations. At a House Financial Services hearing on Thursday, Dimon said the planned increases are “a mistake” that would ship capital and brains overseas.
/bloom.bg/34sero4

Regulation

CFTC Charges Chicago Commodity Pool Operators, Owner, and Former Chief Portfolio Manager with Fraud and Supervision Failures; Former Chief Risk Officer Settles Fraud Charge
CFTC
The Commodity Futures Trading Commission today announced filing charges in federal court against Chicago commodity pool operators (CPOs) LJM Partners Ltd and LJM Funds Management Ltd, (collectively LJM), their Chairman, owner and registered associated person (AP) Anthony J. Caine of Colorado and Chief Portfolio Manager Anish Parvataneni of Illinois with commodity pool fraud and fraud in connection with options on futures contracts for false or misleading statements about worst-case losses, risk management, and LJM’s risk profile.
/bit.ly/2RPEmDD

Episode 10: Adapting to Change
ISDA
Market participants face a huge number of changes, from the death of LIBOR to adapting to the post-Brexit landscape. How is this affecting trading patterns and customer behavior? Sian Hurrell, head of global sales and relationship management at RBC Capital Markets, gives her views.
/bit.ly/3vtFzPC

CFTC’s Agricultural Advisory Committee to Meet via Teleconference June 9
CFTC
Commissioner Dawn D. Stump, the temporary sponsor of the Agricultural Advisory Committee (AAC), announced today the AAC will hold a public meeting on Wednesday, June 9, 2021 at 10:00 a.m. (EDT). The meeting will be held via teleconference in accordance with the agency’s implementation of social distancing due to the COVID-19 (coronavirus) pandemic.
/bit.ly/34l7K7t

FCA confirms measures to protect customers from the loyalty penalty in home and motor insurance markets
UK FCA
The FCA has implemented a package of remedies to improve competition and protect home and motor insurance customers from loyalty penalties. This includes new rules so that renewal quotes for home and motor insurance consumers are not more expensive than they would be for new customers.
/bit.ly/3oZK8yP

UK financial watchdog ends ‘loyalty penalty’ for insurance renewals; FCA estimates that customers could save total of £4.2bn over 10 years on home and motor policies
Ian Smith – FT
The UK’s financial watchdog has confirmed it will abolish the so-called “loyalty penalty” on consumers renewing their home or motor insurance policies, estimating it could save customers a total of £4.2bn over 10 years.
/on.ft.com/2QZhd11

ESMA consults on Guidelines for Data Transfer between Trade Repositories under EMIR and SFTR
ESMA
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, today launched a consultation on amendments to its Guidelines on data transfer between Trade Repositories (TRs) under EMIR, as well as on Guidelines regarding data transfer between TRs under SFTR.
/bit.ly/2RR5r9v

SEC Awards More Than $4 Million to Whistleblower
SEC
The Securities and Exchange Commission today announced an award of more than $4 million to a whistleblower who alerted SEC staff to certain violations, prompting the opening of an investigation. The whistleblower then provided substantial assistance by meeting with SEC staff, identifying key players, and providing additional helpful information and documents.
/bit.ly/3yLY6Zh

SEC Charges Mutual Fund Executives with Misleading Investors Regarding Investment Risks in Funds that Suffered $1 Billion Trading Loss
SEC
The Securities and Exchange Commission today filed a civil action alleging that investment advisers LJM Funds Management Ltd. and LJM Partners Ltd. and their portfolio managers, Anthony Caine and Anish Parvataneni, fraudulently misled investors and the board of directors of a fund they advised about LJM’s risk management practices and the level of risk in LJM’s portfolios. The SEC separately settled related charges with LJM’s Chief Risk Officer, Arjuna Ariathurai.
/bit.ly/3wL3SZH

Remarks at the 40th Annual SEC Small Business Forum
Commission Caroline A. Crenshaw – SEC
Good afternoon! Thank you Martha [Miller] for the warm introduction. It is wonderful to be here. I have truly enjoyed hearing from all of the panelists over the last several days. And I am particularly interested in today’s discussion focused on smaller public companies.
/bit.ly/3yMH65e

ASIC bans director of Global Merces Funds Management Ltd
ASIC
ASIC has banned Holly Marie Grofski, the director of Global Merces Funds Management Ltd (Global Merces), for a period of six months. ASIC’s banning order prohibits Ms Grofski from controlling, whether alone or together with others, any company or other entity that carries on a financial services business until 28 October 2021.
/bit.ly/3oYjUMU

LF Woodford Equity Income Fund investigation
UK FCA
In June 2019, we opened an investigation into the circumstances relating to the suspension of the LF Woodford Equity Income Fund. On this page we set out our public statements on this matter. We will keep this updated as further information is provided.
/bit.ly/3vwUwAu

FCA confirms measures to protect customers from the loyalty penalty in home and motor insurance markets
UK FCA
The FCA has implemented a package of remedies to improve competition and protect home and motor insurance customers from loyalty penalties. This includes new rules so that renewal quotes for home and motor insurance consumers are not more expensive than they would be for new customers.
/bit.ly/3oZK8yP

Investing and Trading

AMC Defies Gravity as Retail Traders Propel Gains to 1,150%
Bailey Lipschultz and Katherine Doherty – Bloomberg
Rally pushed company’s market value to a record $13 billion; Stock has nearly tripled from quarterly earnings on May 6
AMC Entertainment Holdings Inc. capped its best trading session in four months, pushed higher by eager retail investors who celebrated vaulting the company’s market value to a record $13 billion on social media. Shares soared 36% to $26.52 as 691 million shares changed hands, in the busiest day since January for the Leawood, Kansas-based company. The four-day rally more than doubled its stock price, pushing its year-to-date gains to 1,150%.
/bloom.bg/34sGyDD

Fed reverse repo facility sees record $485.3 billion of overnight demand from Wall Street awash in cash
Joy Wiltermuth – MarketWatch
Banks and other financial firms on Thursday piled a record $485.33 billion into the Federal Reserve’s overnight, reverse repo facility as Wall Street continues to grapple with where to park all its cash. The Federal Reserve Bank of New York’s overnight reverse repo program (RRP) already was fetching near-record demand in the past week, after almost no one used it for months.
/on.mktw.net/3un2fQ8

US investors park cash at Fed as market wrestles with negative yields; Demand for central bank’s reverse repo facility hits record as rates on short-term debt plunge
Colby Smith and Eric Platt – FT
A facility that allows money market funds and banks to park their cash at the Federal Reserve was tapped in record size on Thursday, underlining the dearth of options for investors given the collapse in yields for the ultra-safe, short-term securities that they typically invest in.
/on.ft.com/34nFQaZ

Modern Retail Needs Modern Rules; Shouldn’t retail reporting align with how large retail really is?
Phil Mackintosh – Nasdaq
We recently talked about all the different ways there are to define a retail investor. In reality, there isn’t actually a definition of a retail investor, especially in Reg NMS (which does a lot to protect retail trading).
/bit.ly/3chCmez

Stock That Gained 450% in a Year Plunges on MSCI China Debut
Jeanny Yu – Bloomberg
Perennial Energy Holdings tumbles 69% in Hong Kong on Friday; Decline echoes that of Hebei Construction’s fall last year
A Hong Kong stock that had soared nearly 450% the past year plunged in its first trading day as a member of an index compiled by MSCI Inc. Perennial Energy Holdings Ltd., a coal miner based in China’s southern Guizhou province, slumped a record 69% Friday to an eight-month low. Its addition to the MSCI China Index was announced earlier in May as part of a quarterly review.
/bloom.bg/3uwJwSh

Activist Exxon Director Has a Resume Behind Best-in-World Boast
Simon Casey and Kevin Crowley – Bloomberg
Goff has senior management experience in three main oil areas; Dissident director joins after proxy fight led by Engine No. 1
Before Greg Goff was elected as a dissident director to Exxon Mobil Corp.’s board, the oil company called him “unqualified.” Yet it’s hard to find many people who would agree with that assessment, least of all the man himself.
/bloom.bg/3hYURI8

Convertible-Bond Sales Are Soaring in 2021—Often at 0% Interest; So far this year, 97 U.S.-listed companies have issued $54.3 billion of bonds, the highest year-to-date volume ever
Maureen Farrell – WSJ
Publicly traded companies are selling bonds that can convert into stock at a record pace this year, with nearly a third of those issuers paying nothing in interest, as they seek to take advantage of low rates and investors’ ravenous appetite for fast-growing firms.
/on.wsj.com/3ftzflJ

Environmental, Social and Corporate Governance

World’s Third-Largest Pension Fund to Limit Coal-Linked Bets
Youkyung Lee and Heesu Lee – Bloomberg
Korea’s $783 billion fund to tighten screening of coal, power; NPS has stakes in coal-linked firms like Posco, Samsung C&T
South Korea’s National Pension Service, the world’s third-largest retirement fund, “will adopt investment-restriction strategies” for coal-mining and power-generation industries, another sign of global pressure on large funds to invest sustainably.
/bloom.bg/3vBiKtu

A To-Do List for the New Climate Activists on Exxon’s Board; After a week when three oil giants were forced to face climate urgency, a guide to what concrete change might look like.
Gernot Wagner – Bloomberg
Royal Dutch Shell lost a major climate lawsuit. The management of Chevron suffered defeat by shareholders who voted for setting an absolute reduction target for greenhouse gases. And, perhaps in the biggest coup of all, Exxon Mobil saw shareholders override management to appoint climate-minded board members.
/bloom.bg/3oZF1yD

Sibur Plans to Use Russia’s Forests to Offset Carbon From 2024
Dina Khrennikova – Bloomberg
Petrochemical company says it’s responding to investor demands; Yet such programs have faced criticism from climate scientists
Petrochemicals giant Sibur PJSC plans to offset some of its emissions by tapping the carbon-capture potential of Russia’s massive forests from 2024.
/bloom.bg/3oWUtLC

A Big Climate Problem With Few Easy Solutions: Planes; The airline industry might not be able to reduce greenhouse gas emissions for decades because most solutions are not yet viable.
Niraj Chokshi and Clifford Krauss – NY Times
The worst of the pandemic may be over for airlines, but the industry faces another looming crisis: an accounting over its contribution to climate change.
/nyti.ms/3wExg3x

Money, Meet Mouth: Why the ESG War is Just Beginning (and What To Do About It)
Sarah Fortt, Lawrence Elbaum and Margaret Peloso – Vinson & Elkins
As recently as 2015, if an investor was interested in understanding more about a company’s climate change risks and impact, it had the option of submitting a stockholder proposal to be included in the company’s proxy materials through the SEC’s antiquated Rule 14a-8 process. These precatory proposals had to survive a complex process involving multiple opportunities for public companies to exclude them from their proxy materials, and, even if they were included in the proxy statement, there was little chance they would pass. Around 50 of those proposals were submitted for 2015 meetings. None passed. What a difference a few years make.
/bit.ly/3bXBX0E

Exxon Lost a Climate Proxy Fight; Also UniCredit and WeWork.
Matt Levine – Bloomberg
Let’s say you are the chief executive officer of Exxon Mobil Corp., and your second-biggest shareholder, BlackRock Inc., comes in for a meeting. “We would like you to drill less oil, spend more time on renewable energy and commit to being carbon-neutral by 2050,” the BlackRock team says. “Absolutely not, get out of my office,” you say. What can BlackRock do about it?
/bloom.bg/3yEuzRv

Big Oil has learnt it needs to listen on climate change; Activists issue ExxonMobil, Chevron and Shell with a wake-up call
Gillian Tett – FT
A couple of years ago, Bernard Looney, chief executive of energy giant BP, did something unusual. After watching protesters hurl angry criticisms at the 2019 annual general meeting in Aberdeen, he asked to meet one, and subsequently spent many hours quietly listening, trying to understand her point of view.
/on.ft.com/3wE0L5B

Institutions

BGC Partners to Present at Piper Sandler Global Exchange & FinTech Conference on June 9, 2021; Webcast Available for Investors
BGC Partners, Inc.
BGC Partners, Inc. (NASDAQ: BGCP) (“BGC Partners,” “BGC,” or the “Company”), a leading global brokerage and financial technology company, today announced that its Chairman and CEO, Howard W. Lutnick, is scheduled to present at Piper Sandler’s Global Exchange & FinTech Conference at 3:30 p.m. ET on Wednesday, June 9, 2021.
/bit.ly/3bWMGIu

StoneX Provides Access to the Chinese Commodity Markets; StoneX to offer access to key commodities contracts listed on major Chinese futures exchanges
StoneX Group Inc.
StoneX Financial Pte. Ltd. (“StoneX” or the “Company”), a subsidiary of StoneX Group Inc. (NASDAQ: SNEX), today announced that it has become an Overseas Intermediary of the Dalian Commodity Exchange (DCE), Shanghai International Energy Exchange (INE), and the Zhengzhou Commodity Exchange (ZCE), giving it the ability to offer access to key Chinese commodities futures contracts available to international clients.
/prn.to/3hUiRMB

A Credit Suisse Unit Blacklisted Gupta as Another Bankrolled Him
Donal Griffin and Jack Farchy – Bloomberg
Commodity unit, wary of Gupta, stopped deals in 2016; In 2017, asset-management unit created funds that lent to him
Credit Suisse Group AG executives ignored warnings from colleagues about troubled steel tycoon Sanjeev Gupta as they channeled $1.2 billion of client funds to his businesses, according to people familiar with the matter.
/bloom.bg/3frGnPd

Daniel Loeb faces taste of his own medicine in UK investment trust tussle; Asset Value Investors complains about performance of well-known activist’s fund
Joshua Oliver and Ortenca Aliaj – FT
The activist hedge fund manager Daniel Loeb is facing a challenge from a frustrated investor of his own in a tussle over how he is running his UK-listed investment vehicle.
/on.ft.com/3fsf4UV

Hedge fund that beat ExxonMobil says it will have to cut oil output; Engine No 1 won at least two seats on supermajor’s board while raising climate alarms
Derek Brower – FT
The activist investors who invoked the perils of climate change to win a stunning proxy battle against ExxonMobil this week said the supermajor would need to cut oil production, indicating they would keep pressing management to shift strategy in response to the shareholder vote.
/on.ft.com/3uuWMXJ

China Hedge Funds Test 10-Year Lockups Eluding Wall Street
Bloomberg News
Affluent investors prepared to look beyond losses this year; Lockups exceed client commitments at global fund managers
A new crop of hedge funds in China is seeking to achieve what’s eluded New York’s biggest money managers: getting wealthy individuals to invest for a decade or more.
/bloom.bg/3fT8oOF

How a hedge fund named Engine No. 1 delivered a massive blow to Exxon Mobil
Reuters
Last December, when a week-old hedge fund named Engine No. 1 challenged Exxon Mobil to change its ways, laughter echoed through Wall Street circles, from the fund’s name that recalled a famous children’s book to its tiny, then-$40 million stake in what was once the world’s largest publicly traded company.
/bit.ly/34nUIpE

Goldman Sachs lifts mask mandate amid push to return to office
Lydia Moynihan – NY Post
Wall Street titan Goldman Sachs is joining Main Street chains like Walmart in bidding farewell to face masks. In an email to employees Wednesday, a copy of which was obtained by The Post, the investment banking giant said fully vaccinated US employees will no longer have to wear masks — effective immediately.
/bit.ly/2SCAq9q

Department of Justice investigating Archegos collapse: report
Lydia Moynihan – NY Post
The US Department of Justice has reportedly launched a probe into this spring’s dramatic implosion of Archegos Capital Management, which slammed some of the world’s biggest banks with more than $10 billion in losses.
/bit.ly/3uDS1ex

GAM Investments expands into Asia Pacific with new Singapore office; The asset manager has appointed Terence Bong to oversee client activities for the South East Asia region and run the new office in Singapore.
Annabel Smith – The Trade
GAM Investments has moved to further expand its presence in the Asia Pacific region with the opening of a new Singapore office.
/bit.ly/3uzjEVH

Barclays joins MarketAxess’ credit all-to-all institutional order book as market maker; The bank will contribute to price streaming for US investment grade corporate bonds for MarketAxess’ institutional credit markets order book, MarketAxess Live Markets.
Annabel Smith – The Trade
Barclays has committed to becoming a market maker on MarketAxess’ all-to-all institutional fixed income credit markets order book, MarketAxess Live Markets.
/bit.ly/3fs8Q7K

Regions

China to limit daily price swings in national emissions trading to 10%
The Business Times
China’s national emission trading scheme (ETS) will initially set daily trading limits at 10 percent of prices when it comes on line late in June, according to a report in the Securities Times citing the chairman of the exchange that will host the trading.
/bit.ly/34rwHy8

Big Tech Drawn to New Singapore Carbon Offset Trading Market
Ishika Mookerjee – Bloomberg
SGX-backed platform in talks with Google, Microsoft, Amazon; Climate Impact X to rate buyers, sellers based on standards
Some of the world’s largest tech corporations — from Google to Microsoft Corp. and Amazon — are in talks with a new carbon offset trading platform in Singapore that would be among the first to be backed by a public stock exchange.
/bloom.bg/3oYWQgX

Goldman Says China Has Lost the Ability to Boss Commodity Prices
Alfred Cang – Bloomberg
Dips after Beijing speculator warnings a buying opportunity; Fiscal stimulus means U.S. now has more pricing power
China’s efforts to rein in surging commodities prices are likely to be in vain as it’s lost the ability to boss the market around, according to Goldman Sachs Group Inc.
/bloom.bg/3oXBrF3

Turkey Central Bank Replaces Key Executives in Latest Clearout
Kerim Karakaya and Cagan Koc – Bloomberg
Turkey’s central bank has replaced executives at some of its key departments, the latest step in a wider reshuffle that started with the president’s dismissal of a market-friendly governor.
/bloom.bg/3usVRqz

India’s Stock Market Peers Beyond Covid-19 Surge; Investors don’t think the humanitarian crisis will cause long-lasting slowdown in economic activity
Joanne Chiu – WSJ
Indian markets have been resilient amid a devastating second wave of coronavirus—showing investors reckon India’s long-term growth potential is intact despite the humanitarian crisis and that big companies will avoid severe financial damage.
/on.wsj.com/3fOqe5G

Hong Kong Security Chief Warns Citigroup, HSBC Against Dealings With Pro-Democracy Tycoon; Employees could be prosecuted for handling accounts owned by Jimmy Lai, authorities tell banks
Elaine Yu – WSJ
Hong Kong authorities issued warnings to units of Citigroup Inc. C 1.60% and HSBC HSBC 1.36% Holdings PLC that their employees could face jail time if they deal with the accounts or assets of Jimmy Lai, a pro-democracy newspaper owner charged with national-security offenses.
/on.wsj.com/3i0KWBK

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