Thomas Pluta Appointed Next President of Tradeweb

Jul 14, 2022

First Read

Hits & Takes
John Lothian & JLN Staff

Today we have part two of our interview with Joe Corona for the Open Outcry Traders History Project. He tells the story of his best week trading, which started out by taking an eight figure loss due to the stock market crash of 1987, and then he and his trading group trading like animals in the bond option pit all week and making it back. Kudos to Hank Shatkin, Pat Arbor and Wally Weisenborn for letting them back in the pits to do that. It is a story you will not want to miss.

We also have our interview with Erik Swanson, the CEO of Simplex Trading, which we shot during OIC 2022 in San Antonio. This is the last of our JLN Industry Leader videos from OIC.

Neil Eckert won the lifetime achievement award at The Insurer ESG Awards last night in London.

Jennifer Just is presenting at the TEDxChicago Showtime: Chi*Time on September 10 at the Harris Theater. For more details, go to TEDxChicago.com.

The obituary for Jacqueline Todd Cashman of Lake Geneva, WI, and Chicago has posted and A Mass of Christian Burial will be held on Wednesday, July 20, at Old St. Patrick’s Church, 700 W. Adams, Chicago, Illinois at 9:30 a.m. Jacquie is the wife of Thomas J. Cashman and the mother of Thomas F. Cashman.

The funeral mass for John W. O’Brien, Sr. is today, Thursday, July 14, 2022, at 11:00 a.m. at Saints Joseph and Francis Xavier Church in Wilmette, IL.

Twitter is down for some users this morning, including me from time to time.

We are headed home today from the Summit Bechtel Reserve High Adventure Base of the Boy Scouts of America after visiting our daughter Kat and taking advantage of the many offerings of this Scout camp on steroids. We were going to drop in on some friends in Indiana on the way home, but the wife of the couple has come down with Covid and so we will keep on driving and see them another time. The boys finally had a campfire last night after much coaxing and drying of the wood. All in all it was another great week of glamping at the Summit.

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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Veteran Trader Joe Corona Shares His Best Week Trading Ever
JohnLothianNews.com

Joe Corona’s trading group derived its name from its experience in the 1987 stock market crash. He and his partner Bruce Lawrence named the firm “Meltdown Trading.”

Watch the video »

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JLN Interviews Simplex CEO Erik Swanson at OIC 2022
JohnLothianNews.com

JLN interviewed Erik Swanson, the CEO of Simplex Trading, at the 2022 OIC conference in San Antonio, Texas. This is the last video in our JLN Industry Leader video series from the conference.

Watch the video »

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John O’Brien mentored futures traders and expanded his family-owned brokerage; The former chairman and CEO of R.J. O’Brien Associates died Saturday. He was 68.
David Roeder – Chicago Sun-Times
In the tense world of futures trading, John O’Brien projected a calm image, his mind focused on keeping his family-owned brokerage a preferred place for customers to do business and for employees to work.
/jlne.ws/3uLYl6q

***** Local coverage of the passing of former RJO executive John O’Brien.~JJL

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The cryptocurrency market has become a ‘postmodern pyramid scheme’ and its stunning crash is an opportunity to regulate it, famed economist Paul Krugman says
Jennifer Sor – Business Insider
The cryptocurrency market has turned into a “postmodern pyramid scheme,” the top economist Paul Krugman said in a New York Times op-ed – and the spectacular crash investors saw this year is a chance for federal regulation. The vocal crypto critic, who previously called the digital asset the “new subprime,” said the industry has yet to develop products that are useful in the real economy and has instead marketed itself successfully as being both cutting edge and respectable.
/jlne.ws/3z4OpYf

***** A postmodern pyramid scheme? How about a real-time pyramid scheme? Or an on-going pyramid scheme? Or, not a pyramid scheme, but a four dimensional scheme of unknown dynamics?~JJL

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A Nonprofit Looks to Create a Financial Market for Job Training; The organization Pursuit has sold a $10 million bond to finance its job training program. Now it needs participants to pay down the debt with their future earnings.
Fola Akinnibi – Bloomberg
For a year, Rook Soto commuted from his job at a Manhattan hospital to a coding boot camp in Queens and then back home to the Bronx. Sometimes, the 43-year-old would fall asleep on his subway ride home. The marathon days paid off, with Soto landing a job making $85,000 at Accenture Plc, more than double his previous salary. But there was a catch. For the next two years, Soto said he paid about $900 a month to Pursuit, the nonprofit that ran the coding boot camp and connected him to Accenture. While the total amount far exceeded the cost of some similar courses, Soto would do it all over again.
/jlne.ws/3RvGQB3

***** The better paying job you get, the more you have to pay back. That seems like a reasonable trade.~JJL

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Wednesday’s Top Three
Our top story Wednesday was Bloomberg’s How Three Arrows Capital Blew Up and Set Off a Crypto Contagion. Second was our lead story, Markets Plan Doomsday Scenarios If Russia Turns Off the Gas, also from Bloomberg (via Yahoo!Finance). Third was Prime Day is a feast for cybercriminals. Here’s how to avoid them, from Yahoo!Finance.

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MarketsWiki Stats
26,920 pages; 239,474 edits
MarketsWiki Statistics

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Lead Stories

Thomas Pluta Appointed Next President of Tradeweb; Pluta to succeed current President Billy Hult on January 1, 2023 when Hult becomes CEO
Tradeweb Markets Inc.
Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today announced that markets veteran Thomas Pluta has been appointed as its next President. He will join the firm as President-elect in October and become President on January 1, 2023, when current President Billy Hult succeeds Lee Olesky as CEO. As previously announced, Mr. Olesky will retire as CEO at the end of 2022 and continue as Chairman through 2023.
/jlne.ws/3PbkjIc

JP Morgan industry veteran to join Tradeweb as president; Incoming president has spent the last 27 years of his career at JP Morgan, most recently as global head of linear rates and co-head of North America rates trading.
Wesley Bray – The Trade
Tradeweb has appointed industry veteran Thomas Pluta as its next president, joining the firm as president-elect in October and as president on 1 January 2023. He joins Tradeweb from JP Morgan, where he spent 27 years in a variety of roles, most recently as global head of linear rates trading and co-head of North America rates trading.
/jlne.ws/3caAtmv

Shell chief warns Europe may have to ration energy during winter; Head of oil major says prices will rise ‘significantly’ if Russia continues to limit supply
Tom Wilson – FT
Shell chief executive Ben van Beurden has warned that Europe may need to ration access to energy this winter, as he predicted “significantly” higher prices if Russia continues to choke the supply of gas into the EU. The head of Europe’s largest oil and gas company said Russian president Vladimir Putin had shown he was “able and willing to weaponise energy supplies” and that a complete suspension of Russian gas exports to Europe could not be ruled out.
/jlne.ws/3uMbYTh

‘The market is just dead’: Investors steer clear of 20-year Treasuries; Weak demand for debt maturing in two decades causes distortions in US government bond market
Kate Duguid and Colby Smith – FT
Investors are shunning 20-year US government bonds, causing a distortion in the $23tn US Treasury market. Demand for the 20-year government debt security since its reintroduction in 2020 has been so weak that its price is far out of sync with the rest of the market and it is harder to trade. The price swings and lack of liquidity have made it even less popular with the long-term, conservative investors such as pension funds that would typically be its natural buyers. “The 20-year part of the market is just dead,” said Edward Al-Hussainy, senior interest rates strategist at Columbia Threadneedle.
/jlne.ws/3IEXGJz

Single-Stock ETFs to Allow U.S. Investors to Make Big Bets on Popular Stocks; U.S. regulators caution that the new funds, like ones already on the market in Europe, carry risks
Karen Langley – WSJ
Investors in U.S. markets will soon have a new way to supersize bets on high-profile stocks. Regulators are suggesting they do so with care. AXS Investments on Thursday plans to launch a set of exchange-traded funds tied to shares of PayPal Holdings Inc., Nike Inc., Pfizer Inc. and Nvidia Corp. that are designed to amplify their daily performance, or the inverse of that performance. Another fund will seek to produce the inverse of Tesla Inc.’s daily return, without using leverage.
/jlne.ws/3uMXxOA

Big-Name Investors Pour Billions Into Clean Hydrogen Projects; Nebraska startup with unique approach is valued at more than $1 billion
Amrith Ramkumar – WSJ
Big investors are targeting companies that promise to solve the thorniest climate challenges, betting that the winners will reap a windfall. The newest wager is on a Nebraska startup trying to upend the burgeoning industry of clean hydrogen with a process that uses natural gas but traps carbon by producing an ingredient vital for everyday products like car tires.
/jlne.ws/3z3sqRl

Global regulators back ‘same risk, same regulation’ for stablecoins
Huw Jones – Reuters
Major stablecoins must comply with the same safeguards as traditional forms of payments, global regulators said on Wednesday, tightening controls over a battered crypto sector. Stablecoins are cryptocurrencies designed to have a stable value relative to traditional currencies, or to a commodity, to avoid the volatility that makes bitcoin and other digital tokens impractical for most commerce.
/jlne.ws/3bZszME

The Bitcoin VC Who Just Infuriated The Bitcoin World; The problem with laser eyes maxis
Tracy Alloway and Joe Weisenthal – Bloomberg
If you’ve ever interacted with hardcore Bitcoin maximalists you might find some of them, at least, to be… abrasive. And it’s not just no-coiners who are the target of their scorn. The real enemies are ex-maxis, who are viewed as apostates. Nic Carter, a co-founder and GP at the VC firm Castle Island Ventures, has been a longtime Bitcoiner. He has been in the sapce for a long time.
/jlne.ws/3O5WUGO

Europe Is Frying in Devastating Heat, Yet Is Burning More Coal; As gas-hungry Europe revives coal plants, complicating its climate ambitions, the blistering heat this summer shows just what’s at stake.
Laura Millan Lombrana, Megan Durisin, and John Ainger – Bloomberg
Southern France was slammed by a heat wave so intense in June that Celine Imart was forced to harvest rapeseed in the middle of the night to avoid searing hot tractors from sparking fires in her fields. Farmers elsewhere had reported crackling dry crops spontaneously catching fire after coming into contact with the heat from harvesters.
/jlne.ws/3yC4xz3

Marex and Levmet collaborate on first physical aluminium into carbon neutral material
Marex
Marex and Levmet, a leading global commodity trader, have collaborated on what is believed to be the first conversion of physical aluminium into carbon-neutral material by offsetting. The trade was structured by Marex, with the carbon offsets purchased and retired through the AirCarbon (‘ACX’) platform on behalf of Levmet. This was in conjunction with Marex’s environmental team and is in line with Marex’s broader commitment to ESG.
/jlne.ws/3uPihW1

Digital Dollar Could Be Good for Financial Stability, US Federal Researchers Say
Jesse Hamilton – Coindesk
A government-issued digital dollar could actually help stabilize a wobbly financial system in key ways, according to U.S. federal researchers who issued a paper Tuesday. The findings may counter financial lobbyists hoping to steer the government away from such a currency.
/jlne.ws/3yH1ntI

Who Owns All the Bitcoin? Those Who Got Into Crypto Early; The early entrants into digital assets scooped up much of the wealth. And the volatility along with it.
Victoria Vergolina – Bloomberg
Since the founding document that led to the invention of Bitcoin first appeared in 2008, Bitcoin’s true believers have adopted a philosophy that resembles “one for all and all for one” (or at least, all who believe in Bitcoin). Bitcoin is often touted as a means of improving financial inclusion, an invention that allows people oppressed by their governments to maintain or reclaim a sense of freedom. In Bitcoin, everyone’s equal – or so the theory goes. But does the theory match the reality of the ecosystem?
/jlne.ws/3z2ltQI

SEC’s Gensler Casts Doubt on Prospects for China Audit Deal; Commission also advanced measures intended to make it easier for investors to weigh in on company affairs
Paul Kiernan and Michelle Chan – WSJ
Securities and Exchange Commission Chairman Gary Gensler expressed doubt Wednesday that negotiators in Washington and Beijing will reach an agreement over audits that is necessary to prevent Chinese companies from being delisted by U.S. stock exchanges.
/jlne.ws/3uMYSoI

Crypto lender Celsius files for bankruptcy in New York; Company is latest to initiate court proceedings after sharp sell-off this year
Antoine Gara and Kadhim Shubber and Joshua Oliver – FT
Celsius Network, one of the world’s largest cryptocurrency lenders, has filed for bankruptcy, following a wave of digital asset companies that have frozen assets and entered restructuring amid a sharp sell-off in cryptocurrencies this year. The Hoboken, New Jersey-based company’s Chapter 11 bankruptcy filing in federal court in New York comes roughly a month after it froze customer assets, trapping billions of dollars across more than a million accounts.
/jlne.ws/3o2Hw3o

CEL Token Price Plunges 50% as Celsius Files for Bankruptcy
Martin Young – FX Empire
After a month of liquidity turmoil, the beleaguered crypto company Celsius has joined the ranks of several other prominent firms in filing for bankruptcy. Late on July 13, the company announced that it had filed for Chapter 11 bankruptcy in New York while initiating a financial restructuring plan. Celsius claims to have $167 million in cash on hand, which will be used to provide liquidity to “support certain operations during the restructuring process.”
/jlne.ws/3IE6qjf

Suing SEC Is a Possibility, Bitwise Chief Compliance Officer Says
Fran Velasquez – Coindesk
Suing the U.S. Securities and Exchange Commission (SEC) to learn why the regulator rejected Bitwise’s bitcoin exchange-traded fund filing is a possibility, according to Chief Compliance Officer Katherine Dowling.
/jlne.ws/3yLilrc

Why is crypto crashing? Mark Cuban says ‘crypto is going through the lull that the internet went through’
Weston Blasi – MarketWatch
Mark Cuban, billionaire entrepreneur and owner of the NBA’s Dallas Mavericks, thinks that cryptocurrency is on the same downward trend that tech and internet companies hit in the early 2000s. Bitcoin dipped below $20,000 several times in the Summer of 2022, its lowest levels since late 2020, and sales of non-fungible tokens, aka NFTs, plummeted between January and March 2022. Cuban addressed the slump in a viral Twitter (TWTR) thread in May, and crypto prices have continued to slump since then.
/jlne.ws/3o4icds

Money-Market Funds Could Get BOE Backstop Access, Says Barclays; Central bank could open up emergency liquidity facilities; Regulators are looking at MMFs after March 2020 dash-for-cash
Greg Ritchie – Bloomberg
The Bank of England could give money-market funds access to some of its liquidity facilities amid concerns the industry amplifies episodes of market stress, according to Barclays Plc.
/jlne.ws/3uMVWbE

Ukraine Invasion

Russian foreign ministry attacks West for giving Ukrainian forces weapons training
Reuters
Russia’s foreign ministry on Thursday attacked the United States and Britain for helping train Ukraine’s armed forces, calling it part of “hybrid warfare” being waged by NATO countries against Russia. In a media briefing, spokeswoman Maria Zakharova said Washington had provided Ukraine with instructors who were helping Kyiv’s forces use advanced U.S.-made high mobility artillery rocket systems (HIMARS).
/jlne.ws/3RxJrKQ

Russia says Nord Stream 1 future will depend on gas demand and sanctions
Reuters
Russian Foreign Ministry spokeswoman Maria Zakharova said on Thursday that the future of the Nord Stream 1 gas pipeline to Germany would depend on gas demand in Europe and Western sanctions against Russia.
/jlne.ws/3O4vNM7

A second wave of Russians is fleeing Putin’s regime
Karen Gilchrist – CNBC
For months now, Vladimir has been preparing paperwork and getting his affairs in order for a move to France. A visa application process that was once relatively easy is now dogged with complexity, but the 37-year-old is confident that getting his family and employees out of Russia will be worthwhile. “On the one hand, it’s comfortable to live in the country where you were born. But on the other, it’s about the safety of your family,” Vladimir told CNBC via videocall from his office in Moscow.
/jlne.ws/3PuC7ho

Nato and EU sound alarm over risk of Ukraine weapons smuggling; Countries call for greater tracking of arms to stop sales to Europe’s black market
Henry Foy and Sam Fleming and Roman Olearchyk – FT
Nato and EU states are pushing for better tracking of weapons supplied to Ukraine in response to fears that criminal groups are smuggling them out of the country and on to Europe’s black market.
/jlne.ws/3uOyFpT

Ukraine Grain Talks With Russia Take Step Forward; Parties will meet again next week: Turkish defense minister
UN chief is ‘optimistic’ but says more work still is needed
Beril Akman, Megan Durisin, and Daryna Krasnolutska – Bloomberg
Negotiations over unblocking millions of tons of Ukraine’s grain exports were constructive, according to Ukraine, the United Nations, Turkey and Russia, an initial step in bolstering global food supplies and aiding the country’s beleaguered farm sector.
/jlne.ws/3AOsTIs

Trading Looted Ukrainian Commodities Could Be a War Crime, Prosecutor Warns; Attorney General says criminal proceedings are underway
Zug and Geneva are top international commodity-trading hubs
Hugo Miller – Bloomberg
The commodities industry got a thinly veiled warning from Switzerland’s top prosecutor: steer clear of coal, grain or other foodstuffs reportedly pillaged from Ukraine or risk committing a war crime. In an opinion piece for Le Temps newspaper on Wednesday, Swiss Attorney General Stefan Blaettler sketched out how economic crimes committed abroad could also be pursued by local prosecutors if linked to entities in Switzerland, a historic hub for commodity trading.
/jlne.ws/3IAE0qp

Ukraine Seizes Assets From OTC Crypto Brokers for Working With Russians
Anna Baydakova – Yahoo Finance
Ukrainian prosecutors said they have seized a wealth of assets belonging to over-the-counter (OTC) brokers who illegally facilitated cryptocurrency purchases for users from Russia and Russia-occupied territories. The clients of those dealers were able “to convert cash and non-cash funds into cryptocurrency, without paying taxes,” the Prosecutor General’s office announced Tuesday in a Ukrainian-language press release that received little notice in the West.
/jlne.ws/3aJ1sVP

EU Weighs Lifting Sanctions on Some Russians Over Legal Concerns; About 40 individuals have asked to be taken off sanctions; list
EU lawyers have found that some of the requests have merit
Bloomberg News
The European Union is in discussions about removing sanctions it imposed on some Russian individuals over their involvement in Moscow’s war in Ukraine after the bloc’s lawyers found that the penalties may have been imposed on weak grounds, according to people familiar with the matter.
/jlne.ws/3yIAiGR

Ukraine’s Future Hinges on Holding the Moral High Ground Now; As the world’s attention drifts away from a protracted, slower-moving conflict, Ukraine cannot afford to backslide and become less distinguishable from its enemy.
Leonid Bershidsky – Bloomberg
If you lean toward supporting Russia in its invasion of Ukraine, or if you’re a pacifist convinced of the inherent criminality of armed conflict, you’ll find evidence that, for all of its adroit messaging, Ukraine’s conduct during the war is hardly impeccable.
/jlne.ws/3yHLa7C

Analysts say Kyiv has six months to drive out the invading forces from the country before fatigue sets in and it faces prolonged military gridlock
Ben Hall and Roman Olearchyk – FT
Russia has been at war in Ukraine for almost five months but “has not started anything in earnest yet”, President Vladimir Putin said last week just days after his troops seized Lysychansk, the last city in the eastern Luhansk province still under Kyiv’s control.
/jlne.ws/3o7mws4

Exchanges, OTC and Clearing

The CSE Is Proud to Sponsor the Think ESG Event in Toronto, on July 14, 2022
Benzinga
The Canadian Securities Exchange (CSE) will be sponsoring and participating at the Think ESG event hosted at The National Club, in Toronto on Thursday July 14, 2022.
/bit.ly/3caqpde

IBEX 35 companies increase their market-based funding to 55%
BME-X
Large Spanish listed companies’ dependence of on bank credit has halved in a decade, according to the latest report from BME’s Research Department. Companies improve their liquidity, net financial debt-to-assets ratio and financial coverage ratio. The financing structure of Spanish listed companies has changed over the last decade. According to the latest report by BME’s Research Department with data at the end of 2021, in the last decade bank financing of IBEX 35® companies has gone from 49.6% to 26.3% of their total financial liabilities, while resources in the form of debt securities registered in the markets now account for 54.9% compared to 39.7% ten years ago.
/bit.ly/3O6gN0k

Shanghai Futures Exchange, Bursa Malaysia Derivatives Agree to Share Info, Best Practices
Liao Shumin – Yicai Global
The Shanghai Futures Exchange and its unit, the Shanghai International Energy Exchange, have agreed with Bursa Malaysia Derivatives to share information and best practices in areas of common interest. The memorandum of understanding the pair signed on July 12 covers marketing, product research, personnel exchanges and other areas.
/bit.ly/3nZJ2Dt

EBS Market on CME Globex Notice
CME Group
Topics in this issue include: Critical Information; EBS Market OFF-SEF/OFF-MTF NDF Migration – August 7 Update; Post-Migration iCross Connectivity – October 15; Reminder: Short Code Identifiers on CME Globex; Reminder: Disorderly Market Testing for NEX MTF on CME Globex; Announcements and Additional Resources; Subscription Center for EBS Market on CME Globex Notice.
/bit.ly/3RrfAUe

Exchange Council discussed emergency measures of the exchange and further impacts of Ukraine war
EEX
On 6 July 2022, the Exchange Council of the European Energy Exchange (EEX) held its second meeting of the year, chaired by Dr. Bernhard Walter, Head of Market Design and Regulatory Affairs at EnBW AG. The main topics of the discussions were the current market conditions due to the Ukraine war, the precautions taken by the exchange and clearing house and upcoming amended regulation.
/bit.ly/3o2zKq5

Eurex FX update; Market update – Eurex further cements its position as Europe’s preferred FX liquidity hub
Eurex
Eurex FX continues its growth trajectory with volumes in Q2 2022 reaching over 390,000 contracts, thereby establishing another record quarter by exceeding Q1’s previous record volumes (374k contracts). With an open interest now standing at ca. 80,000 contracts, nearly 770,000 contracts already traded in 2022. Compared to the same period last year, this represents a YTD growth rate of 175%.
/bit.ly/3PnInr2

Shanghai-Hong Kong Stock Connect – Migration To New Shanghai Stock Exchange (Sse) Trading Gateway
HKEX
Reference is made to the announcement issued by SSE today which confirms the date of the first batch migration to the new SSE trading gateway on 18 July 2022, with the dates of the subsequent migrations to be confirmed at a later stage. China Connect Exchange Participants (CCEPs) and Trade-through Exchange Participants (TTEPs) are required to note that Orion Trading Platform – China Stock Connect (OTP-CSC) for northbound trading will not be migrated to the new trading gateway in the first batch, in view of market readiness and migration risk mitigation necessary for a major technical upgrade. Subject to the smooth migration of the first batch and market readiness, we are working with the SSE to migrate OTP-CSC to the new gateway in the next batch, with the exact date to be further confirmed by SSE.
/bit.ly/3O5JeLX

ICE Benchmark Administration Introduces Calendar Year Inflation Expectations to ICE U.S. Dollar Inflation Expectations Index Family
ICE
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology, and market infrastructure, today announced that ICE Benchmark Administration Limited (IBA) is introducing full calendar year inflation expectations to the ICE U.S. Dollar Inflation Expectations Index Family. Inflation expectations are crucial to financial markets and to policy makers. In March 2022, IBA created the ICE U.S. Dollar Inflation Expectations Index Family to provide the market with an easy to access tool to measure expectations for future inflation.
/bit.ly/3aDlxgl

Moscow Exchange launches exchange-traded money market fund
MOEX
On July 14, 2022, trading in shares of the exchange-traded mutual investment fund (BPIF) “Alfa Capital Money Market” under the management of Alfa Capital Management Company began on the Moscow Exchange. Trade code – AKMM .
/bit.ly/3o2BLm9

Publication Of The Newsletter From The Regulatory Division
TMX
The Regulatory Division (the “Division”) issues its Newsletter for the period of January 1 to June 30, 2022. The Division issues a semi-annual newsletter to provide information of a general nature on regulatory activities. The Division also uses this opportunity to share best practices in regulatory compliance. You may find the Newsletter attached as well as on the Regulatory Division’s website.
/bit.ly/3IzLXw5

Karnataka State Higher Education Council signs Mou with NSE Academy for financial awareness among students
NSE
NSE Academy Limited (NAL), a wholly owned subsidiary of the National Stock Exchange (NSE) collaborates with Karnataka State Higher Education Council (KSHEC) for a state-wide Financial Education and Investment Awareness Course. An MoU was signed between KSHEC and NSE Academy, on 12th July, 2022, in Bengaluru in the presence of Dr. C. N. Ashwath Narayan, the Hon’ble Higher Education Minister of Karnataka. After signing the MoU with KSHEC, NSE Academy also signed MoAs with over 20 state universities of Karnataka for the Financial Education and Investment Awareness Course’.
/bit.ly/3o1YCOT

Fintech

Morgan Stanley Misuse of Personal Devices Will Cost $200 Million
Sridhar Natarajan and Katherine Doherty – Bloomberg
Morgan Stanley expects to pay a $200 million fine related to a broad US investigation into the use of unapproved personal devices, according to its earnings statement. That amount is based on discussions the firm has had with the Securities and Exchange Commission and the Commodity Futures Trading Commission, who have been probing the matter across Wall Street.
/jlne.ws/3yF5OFt

Web3 is just a fresh serving of the same old crypto nonsense; Instead of guarding the internet from exploitation, the technology adds an extra layer of financialisation
Jemima Kelly – FT
You have probably, unless you’ve been unusually fortunate, been schooled in the wonders of Web3. For the remaining lucky few, allow me to explain. Web3 is the inexorable destiny of the internet — the magical fabric from which blockchain-based decentralised dreams are made and dystopian big-tech nightmares destroyed. The future is bright; the future is “append-only” databases.
/jlne.ws/3O6T7c8

Cybersecurity

TikTok Use by Military Poses Security Risk, US Regulator Testifies; FCC member Carr says location data may flow to Beijing; TikTok ‘pervasive’ on personal devices, Carr tells House panel
Todd Shields and Alex Barinka – Bloomberg
US military members are risking national security with their use of the TikTok social-media service, according to a federal communications regulator who has been pushing for the video-sharing app to be removed from online stores.
/jlne.ws/3RxMyT2

Cybersecurity skills surpass cloud skills as this year’s training priority, if professionals can find the time
Joe McKendrick – ZDNet
In a full-time technology job bursting with activity and firefighting, finding slots of time to develop skills may be an impossible dream. Some employers help out by allowing for an upskilling while on the clock, but not enough.
/jlne.ws/3PqNV3X

Carrick Capital Invests $75 Million in Cybersecurity Company Bishop Fox
Lisa Garcia – WSJ
Growth-focused Carrick Capital Partners is committing $75 million to cybersecurity services provider Bishop Fox Inc. as the private-equity firm makes a final investment from its $380 million third fund.
Tempe, Ariz.-based Bishop Fox provides so-called offensive-security software, or tools that simulate hacker attacks to identify vulnerabilities in computers and networks, enabling clients to remedy weaknesses. The company also provides education and cybersecurity training.
/jlne.ws/3z2Chag

Conventional cybersecurity approaches are falling short
Help Net Security
Traditional security approaches that rely on reactive, detect-and-respond measures and tedious manual processes can’t keep pace with the volume, variety, and velocity of current threats, according to Skybox Security. As a result, 27% of all executives and 40% of CSOs say their organizations are not well prepared for today’s rapidly shifting threat landscape.
/jlne.ws/3aAT0bo

Cryptocurrencies

Celsius’ Mining Unit Files for Bankruptcy Just Months After Announcing IPO Intention
Aoyon Ashraf – Coindesk
Celsius Network’s mining unit, which said in March it planned to go public, filed for Chapter 11 bankruptcy protection, along with its parent company, in the U.S. Bankruptcy Court for the Southern District of New York.
/jlne.ws/3aIXc8N

JPMorgan Says Bitcoin Cost of Production May Be Down to $13,000
Joanna Ossinger – Bloomberg
Bitcoin’s cost of production has dropped from about $24,000 at the start of June to around $13,000 now, which may be seen as a negative for pricing, according to JPMorgan Chase & Co.
/jlne.ws/3yYOPOP

Digital yuan tops US$12B transactions in 2022 so far
Ningwei Qin – Forkast
China had more than 264 million yuan digital yuan transactions, with a total volume topping 83 billion yuan (about US$12.3 billion), as of May 31, People’s Bank of China (PBoC) official Zou Lan said at a press conference on Wednesday.
/jlne.ws/3P61wOv

DoNotPay CEO Wants to ‘Give Little Guys the Power’ to Sue Celsius
Fran Velasquez – Coindesk
If one tech executive gets his way, crypto lender Celsius Network could soon be responding to a flurry of lawsuits from investors who suffered at the hands of the platform’s withdrawal freeze. British computer scientist and CEO of legal services chatbot DoNotPay, Joshua Browder, suggests investors sue the lender as it faces insolvency. He told CoinDesk TV’s “First Mover” a loophole in Celsius’ terms of service (Section 27 C) gives individual investors the ability to file a claim suit against Celsius Network in small claims court. The claim, however, must fall below a $10,000 threshold, but that may work to the benefit of plaintiffs.
/jlne.ws/3AMMSHy

Digital Euro Would Be a Success Only If Widely Used, ECB Says
Sandali Handagama – Coindesk
Only a digital euro that is widely accepted by European users could be considered a success, according to the European Central Bank (ECB). The ECB published key objectives for the digital euro in a blog post authored by the bank’s President Christine Lagarde and executive board member Fabio Panetta on Wednesday. An accompanying document laid out some basic design considerations for a digital version of the European Union’s single currency meant for public use.
/jlne.ws/3PuAm3M

Wobble in stETH’s Price Shows Fear Celsius Might Dump $435M Stake
Krisztian Sandor – Coindesk
An obscure crypto-market metric known as the “stETH discount” is suddenly sending a distress signal, possibly because of speculation that the troubled lender Celsius Network is preparing to dump some of its holdings in a bid to raise liquidity.
/jlne.ws/3nZk0Em

South African Central Bank to Look at Regulating Crypto
Amitoj Singh – Coindesk
South Africa will look to introduce a regulatory framework for cryptocurrencies, said Kuben Naidoo, Deputy Governor of the South African Reserve Bank (SARB). “Our view has changed and we now regard it [cryptocurrency] as a financial asset and we hope to regulate it as a financial asset,” he said at a PSG Think Big webinar. “There has been a lot of money that has flowed in, and there is a need to regulate it and bring it into the mainstream.”
/jlne.ws/3cgnsrL

OKX Secures License in Dubai and Plans to Open Regional Hub
Oliver Knight – Coindesk
Cryptocurrency exchange OKX has been awarded a provisional virtual assets (VA) license in Dubai, according to a press release on Thursday. The license, issued by the Dubai Virtual Assets Regulatory Authority (VARA), will allow OKX to provide trading services to investors in the United Arab Emirates (UAE).
/jlne.ws/3z0Oc8p

Ripple To Onboard NFT Projects Through A Partnership With CrossTower
Ali Raza – Insidebitoins
Leading blockchain and crypto solutions provider Ripple has announced a partnership with trading platform CrossTower to add XRP Ledger non-fungible tokens CrossTower NFT platform. This is coming three months after cross-chain bridge Allbridge added support for the XRP Ledger, making it the 14th chain added to the platform.
/jlne.ws/3RzYV0M

From $100 Bn To $10 Bn: How The Coinbase Crash Will Rattle Indian Crypto Market
Suprita Anupam – Inc42.com
In April 2021, when cryptocurrency exchange Coinbase Global’s valuation hit $100 Bn soon after its NASDAQ debut, Leeor Shimron, an analyst at FundStrat Global Advisors, called the listing seminal.
/jlne.ws/3yYRecj

Politics

Amazon Secretly Funds New Coalition Opposing Tech Regulation; Competitiveness Coalition brands itself as a grassroots group; Amazon gave more than $1 million to the advocacy organization
Emily Birnbaum – Bloomberg
A group fighting antitrust legislation targeting the biggest US tech companies presents itself as a grassroots advocate for American taxpayers, yet it hasn’t disclosed a significant source of funding from one of the industry’s giants: Amazon.com Inc.
/jlne.ws/3PhSv4C

Why China Has U.S. Congress Focused on Computer Chips
Brittney Washington – Bloomberg
A desire to spend more than $50 billion to bolster the US semiconductor industry seemed to be a rare point of bipartisan consensus in Washington. But legislation to carry out that initiative — with the goal of increasing US competitiveness with China — now faces an uncertain fate, caught in a larger struggle between Democrats and Republicans over spending.
/jlne.ws/3AOD5AI

Regulation

SEC Takes Steps to Free Up Proxy Advisers, Shareholder Proposals; Final rule reverses some restrictions on ISS, Glass Lewis; Companies would face hurdles to blocking proposals in proposal
Lydia Beyoud and Alex Nguyen – Bloomberg
Wall Street’s watchdog is taking new steps to empower investors and proxy advisory firms through a pair of rules voted on at a Wednesday meeting. The US Securities and Exchange Commission approved final rules by a 3-2 partisan vote to free proxy advisers from some restrictions placed on them at the end of the Trump administration. Critics of the 2020 rules say they hampered firms’ independence.
/jlne.ws/3z4vM6F

SEC Chief Gensler questions whether deal can be made to keep Chinese stocks listed in U.S.
Chris Matthews – MarketWatch
A deadline is fast approaching for U.S. and Chinese regulators to strike a deal that would enable investors to continue to trade stocks of Chinese companies on U.S. exchanges, but Securities and Exchange Commission Chairman Gary Gensler is unsure that an agreement can be struck.
/jlne.ws/3uI2Hvp

Statement of Commissioner Caroline D. Pham on the CPMI-IOSCO Final Guidance on Stablecoin Arrangements
CFTC
CFTC Commissioner Caroline D. Pham made the following statement today regarding international efforts to set standards for the regulation of stablecoins: “Technological change has continued to transform markets, with the rise of digital assets and innovations such as stablecoin arrangements to provide transfer functions. Today, the Bank of International Settlements’ (BIS) Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) issued the report Application of the Principles for Financial Market Infrastructures to stablecoin arrangements.
/jlne.ws/3AL5bwQ

Forex Dealer Members: Effective date for amendment to NFA Compliance Rule 2-43
NFA
NFA Compliance Rule 2-43 prohibits a forex dealer member (FDM) from cancelling or adjusting a customer account in a manner that would directly or indirectly change the price of the executed order except under two limited circumstances. The first exception permits a cancellation or adjustment if it is favorable to the customer and done as part of settling a customer complaint, provided the FDM adjusts all adversely affected customer orders. The second exception permits an FDM to adjust or cancel an order if the FDM exclusively uses straight-through processing and the counterparty to the offsetting position with the FDM cancels or adjusts that order. NFA recently amended NFA Compliance Rule 2-43 to specify that the second exception is limited to FDMs that exclusively use straight-through processing with a counterparty that is not an affiliate of the FDM.
/jlne.ws/3c7bJvn

Reminder – FINRA Data Feeds Protocol and Retransmission Changes
FINRA
Beginning in early December 2022, FINRA will introduce changes to the Trade Data Dissemination Service (TDDS 2.0).1 These changes are being made in concert with FINRA’s technical infrastructure upgrade, and TDDS clients should plan to accommodate them.
/jlne.ws/3IAhm1q

FINRA Bars Two Individuals for Cheating on Online Qualification Exams; Regulator’s First Enforcement Actions for Online Cheating
FINRA
FINRA announced today that it has barred Brandon Autiero of New Jersey and Harris Kausar of New York from the securities industry for cheating during qualification examinations administered online. The enforcement actions are FINRA’s first in connection with cheating on remote exams.
/jlne.ws/3z5dW3z

SEC Proposes Amendments to Shareholder Proposal Rule
SEC
The Securities and Exchange Commission today proposed amendments to the rule that governs the process for including shareholder proposals in a company’s proxy statement. Under Rule 14a-8, companies generally must include shareholder proposals in their proxy statements. The rule, however, provides several bases for exclusion, including several substantive requirements that proposals must comply with to avoid exclusion. The proposed amendments would revise three of the bases for exclusion to promote more consistency and predictability in application.
/jlne.ws/3ASI5nY

SEC Adopts Amendments to Proxy Rules Governing Proxy Voting Advice; Amendments Address Concerns by Investors and Others Regarding Rules That May Impair the Timeliness and Independence of Proxy Voting Advice
SEC
The Securities and Exchange Commission today voted to adopt amendments to its rules governing proxy voting advice as proposed in November 2021. The final amendments aim to avoid burdens on proxy voting advice businesses that may impair the timeliness and independence of their advice. The amendments also address misperceptions about liability standards applicable to proxy voting advice while also preserving investors’ confidence in the integrity of such advice.
/jlne.ws/3uLRlGJ

Statement on Proposed Amendments to Rule 14a-8
Chair Gary Gensler – SEC
Today, the Commission will consider proposed amendments to Rule 14a-8 that would provide greater certainty as to the circumstances in which companies are able to exclude shareholder proposals from their proxy statements. I am pleased to support the proposed amendments because, if adopted, they would improve the shareholder proposal process.
/jlne.ws/3uO10fM

Statement on Adoption of Amendments to the Rules Governing Proxy Voting Advice
Chair Gary Gensler – SEC
Today, the Commission will consider adopting amendments to the rules governing proxy voting advice. I am pleased to support these amendments because they address issues concerning the timeliness and independence of proxy voting advice, which would help to protect investors and facilitate shareholder democracy. Institutional investors—and their investment advisers—often find it helpful to turn to specialized businesses called proxy advisory firms to provide them with voting recommendations concerning important corporate matters such as the election of directors, merger transactions, and shareholder proposals.
/jlne.ws/3yHARR0

SEC Charges Four Unregistered Brokers Who Sold Sky Group Securities
SEC
The Securities and Exchange Commission today announced charges against four individuals for unlawfully selling securities of Sky Group USA, LLC, a payday loan company based in Miami, Florida. The SEC previously charged Sky Group and its owner and CEO with fraudulently raising at least $66 million through the sale of securities in the form of promissory notes to more than 500 retail investors, including many members of the South Florida Venezuelan-American community.
/jlne.ws/3P8Cq1u

ASIC makes product intervention orders for short term credit and continuing credit contracts
ASIC
ASIC has made product intervention orders by way of legislative instruments imposing conditions on the issuing of short term credit and continuing credit contracts to retail clients.
/jlne.ws/3o1mDWh

OTC derivatives provider Sirius Financial Markets surrenders licence, former executives handed eight-year bans
ASIC
Following an ASIC investigation, over-the-counter (OTC) derivatives provider Sirius Financial Markets Pty Ltd, trading as ‘Trade360’, has surrendered its Australian Financial Services licence.
/jlne.ws/3OeN5qg

Monetary Authority of Singapore and People’s Bank of China Further Renew Bilateral Currency Swap Arrangement
Monetary Authority of Singapore
The Monetary Authority of Singapore (MAS) and the People’s Bank of China (PBC) today announced the renewal of the Bilateral Currency Swap Arrangement (BCSA) for a further term of five years, until 2027.
/jlne.ws/3Rwk3oO

Banque de France Governor inaugurates Asia-Pacific Representative Office in Singapore
Monetary Authority of Singapore
The Banque de France today officially inaugurated its Asia-Pacific Representative Office in Singapore, which opened in 2020. Governor François Villeroy de Galhau of the Banque de France officiated the event, which was attended by the Ambassador of France to Singapore, and senior officials from the Monetary Authority of Singapore (MAS), foreign central banks and French financial institutions. Banque de France’s office in Singapore is its second overseas office, following the opening of a Representative Office in New York office in 2010.
/jlne.ws/3PqBV2p

SFC welcomes re-appointment of Executive Directors
Securities and Futures Commission – Hong Kong
The Securities and Futures Commission (SFC) welcomes the re-appointment by the Financial Secretary of Ms Christina Choi and Mr Rico Leung as Executive Director (Investment Products) and Executive Director (Supervision of Markets) for a term of three years with effect from 1 August 2022 and 28 August 2022, respectively (Note 1).
/jlne.ws/3yHDQZB

TDCC launches e-voting platform for fund beneficiaries meetings
FSC – Taiwan
To provide fund beneficiaries with a wide variety of channels via which to take active part in fund beneficiaries meetings, the FSC earlier included the launch and optimization of an e-voting platform for fund beneficiaries meetings among the various projects designed to “boost the functions and competitiveness of financial intermediaries,” which is Strategy 4 in the FSC’s Capital Market Roadmap.
/jlne.ws/3az0ZWs

FSC coordinates with amendment to Article 2 of “Regulations Governing Public Disclosure by the Financial Supervisory Commission of Material Enforcement Actions for Violations of Financial Legislation” by revising an interpretive rule regarding Article 146-1, Paragraph 1, Subparagraph 6 of the “Insurance Act” and also amends Article 22 of “Regulatio
FSC – Taiwan
To coordinate with an amendment to Article 2 of “Regulations Governing Public Disclosure by the Financial Supervisory Commission of Material Enforcement Actions for Violations of Financial Legislation,” and for the sake of consistency in financial supervision, the FSC recently revised Point 3, Subparagraph 3 of the interpretive rule regarding Article 146-1, Paragraph 1, Subparagraph 6 of the “Insurance Act” to: (a) require that, for an insurer to be eligible to invest in futures trust fund beneficiary certificate, it must have never been subject to a material sanction or penalty for any illegal use of funds; and (b) change the amount of administrative fines to NT$3 million.
/jlne.ws/3PczH79

FSC amends Article 8 of the “Regulations Governing Public Disclosure of Information by Non-life Insurance Enterprises” and Article 8 of the “Regulations Governing Public Disclosure of Information by Life Insurance Enterprises”
FSC – Taiwan
For the sake of consistency in financial supervision, the FSC recently amended provisions in Article 8 of the “Regulations Governing Public Disclosure of Information by Non-life Insurance Enterprises” and Article 8 of the “Regulations Governing Public Disclosure of Information by Life Insurance Enterprises”, which govern the disclosure of information pertaining to insurers’ implementation of corporate governance requirements, achievement of sustainability goals, improvement of cyber security management, and performance in the area of ethical corporate management. Principal amendments to the Regulations include the following:
/jlne.ws/3ICcRDn

FSC eases restrictions on scope of proprietary trading of foreign bonds by securities firms
FSC – Taiwan
To encourage the development of a diverse range of financial products, and to afford securities firms a broader scope of business operations, the FSC on 1 June 2022 issued an order that securities firms are further allowed to deal at their business premises in mortgage backed securities (MBSs) and collateralized debt obligations (CDOs) with counterparties that qualify as professional institutional investors and high-net-worth corporate investors as defined in Article 3, Paragraph 3 of the “Regulations Governing Offshore Structured Products.”
/jlne.ws/3ceiv2A

Investing and Trading

IRS Gives Wealthy Families More Time to Shelter Assets from Estate Tax; A surviving spouse will now have up to five years to claim larger estate-tax exemption
Ashlea Ebeling – WSJ
The federal government is giving widows and widowers more time to deal with the intricacies of the estate tax after a spouse dies. When one spouse dies, their partner often inherits all or part of the deceased person’s estate. The surviving spouse receives those funds tax-free. They can also carry over the deceased’s unused estate tax exclusion if they file an estate tax return and choose what the Internal Revenue Service calls portability.
/jlne.ws/3aAAIXM

If This Is Your First Bear Market, There’s No Need to Panic; Deep selloffs end eventually, but no one can predict when, so it’s a mistake to put off investing or to pull money out.
Nir Kaissar – Bloomberg
Trading apps such as Robinhood Markets Inc. introduced millions of investors to the stock market during the pandemic, and many of them are experiencing a bear market for the first time. I suspect they have already learned some valuable lessons, notably that picking stocks is much more difficult in a down market. I’m reminded of others I learned as a business student and later experienced during my first bear market, the long and painful dot-com bust from 2000 to 2002.
/jlne.ws/3o0iO3x

Libor Jumps Most Since 2008 as Traders Bet on Bigger Fed Hikes; Three-month benchmark rises to highest level since early 2019; Jump comes as overnight index swaps reprice Fed rate hikes
Alex Harris – Bloomberg
The three-month London interbank offered rate for dollars notched its biggest increase since 2008, soaring to the highest level in more than three years as traders anticipate larger interest-rate hikes by the Federal Reserve. Libor rose for the fourth straight session, jumping almost 23 basis points to 2.7403%, in the largest one-day increase since September 2008. The spread of Libor over overnight index swaps widened to roughly 12 basis points from minus 5.7 basis points the prior session.
/jlne.ws/3P3cSmi

Liquidity is a bigger worry for investor returns than growth; There is nothing automatic about high inflation or tighter policy catalysing a deep recession
Bhanu Baweja – FT
Google Trends’ search count for the word ‘recession’ in the US has risen close to the highs last seen around peak Covid-19, reflecting its centrality in narrative of investors. However, the markets aren’t pricing in one. Smaller company stocks are traditionally sensitive to economic downturns but have performed in line with, not well below, larger peers across most regions.
/jlne.ws/3P8Mx6s

European equities: the American dream? As the European equities landscape becomes increasingly bloody and the largest US banks continue to dominate, Annabel Smith explores why European banks struggle to profit on their own turf and, if the Bloc were to need a home-grown champion, who it could be.
Annabel Smith – The Trade
The European equities market has become an increasingly deadly place to be, especially for smaller European institutions which, when compared with the likes of big hitters like US-based Goldman Sachs and JP Morgan, simply don’t have the economies of scale to compete.
/jlne.ws/3vaBZvN

Environmental, Social and Corporate Governance

Glencore Expands Coal Mining in an Australian Methane Hotspot;’ The company is opening up new areas for mining at its Hail Creek coal site, which scientists have linked to significant emissions of the potent greenhouse gas.
Aaron Clark – Bloomberg
Glencore Plc is expanding a coal mine that scientists have estimated leaks so much planet-wrecking methane each year it has the same warming impact as the annual emissions from millions of cars.
/jlne.ws/3O5MVkP

The Era of Expensive Oil Is Here to Stay
Even as prices drop to a three-month low, the world is still struggling to produce all the oil it needs—and the impact on global economics and politics will be profound.
relates to The Era of Expensive Oil Is Here to Stay
Will Kennedy – Bloomberg
On July 6 the global benchmark for oil slid below $100 a barrel for the first time since April, raising the hopes of politicians, business owners, and drivers around the world that the days of high fuel prices were coming to an end.
/jlne.ws/3c9hAQW

Corporate Backlash Over SEC Climate Plan Takes Shape; Business groups and Republican-controlled states line up to attack the regulator’s effort to have companies spell out risks posed by the climate crisis.
Tim Quinson – Bloomberg
By November, around the time US midterm elections are held, investors will likely learn the fate of the Securities and Exchange Commission’s plan for more comprehensive corporate climate disclosures. The SEC announced plans in March to require companies to spell out the risks that the climate crisis poses to their operations in annual reports and other documents. It calls for auditors or other experts to review the data and also wants more companies to disclose the emissions produced by businesses in their supply chain, or their so-called Scope 3 emissions.
/bloom.bg/3IFMgpi

Leon Saunders Calvert To Join ESG Book As Chief Product Officer – New Hire Will Lead The Expansion Of ESG Book’s Product Suite, Driving The Firm’s Market Differentiation Through Next-Generation Sustainability Solutions
Mondovisione
Currently Head of Research and Portfolio Management at the London Stock Exchange Group (LSEG), Leon Saunders Calvert will join ESG Book in October 2022. Saunders Calvert was previously Head of Sustainable Investing, Lipper, and Research for Refinitiv (now an LSEG business), and before that ran the M&A and Capital Raising business line at Thomson Reuters. His appointment is part of the scaling of ESG Book’s services worldwide, as the company accelerates its growth in response to increasing client demand for technology enabled ESG data solutions. Announcement follows ESG Book’s recent $35 million Series B to build the world’s leading ESG data platform, and expand into cutting-edge new product areas.
https://bit.ly/3uN44sI

Shareholder ESG support down but not out, researchers say
Ross Kerber – Reuters
Average support for shareholder resolutions on environmental, social and governance (ESG) topics at U.S. companies dipped to 26.6% this year from 32% in 2021 as asset managers shied away from backing tougher investor requests, new data showed. Activists still won a majority of support on 34 ESG resolutions so far this year, the same level as a year earlier, according to the data through July 1 provided to Reuters by activist group As You Sow and researchers Proxy Impact and the Sustainable Investments Institute.
/reut.rs/3AJ85SO

What Honest, Natural ESG Would Look Like
Scott Shepard – Real Clear Markets
Despite the transparent prevarications of the most powerful proponents of current ESG, those positions are entirely and deeply partisan. As has been noted on these pages before, Larry Fink followed up his assertions that ESG and stakeholder capitalism are neither “partisan” nor “woke” by establishing as his two biggest ESG goals “equity” – which means active illegal discrimination to achieve artificial equalities of outcome – and decarbonization on political schedules that will permit him and his buddies to continue to fly around the world in private jets while the rest of us are too crippled by costly and unreliable energy to be able to continue to live normal modern lives. Not incidentally, those two goals are also the two “whole of government” goals of the present administration, which is of course very partisan indeed.
/bit.ly/3aGXQ6Y

Why companies could soon pay for climate change; From hostile takeovers to C-suite intrigue, Behind the Money takes you inside the business and financial stories of the moment with reporting from Financial Times journalists around the world. See acast.com/privacy for privacy and opt-out information.
FT
A few years ago a Peruvian farmer filed a lawsuit against a German utility company thousands of miles away. The reason? A glacier is melting near his hometown. If it melts enough, it could cause a flood that may catastrophically damage his city. He says that over years the company’s pollution has contributed to climate change, and because of this, it should help pay for protections against the potential flood.
/jlne.ws/3RApGlE

Institutions

JPMorgan profit falls 28%, Dimon cautious on global economy
Reuters
JPMorgan Chase & Co reported a bigger-than-expected 28% fall in second-quarter profit on Thursday as America’s largest bank set aside more money to cover potential losses in the face of growing risks of a recession.
/jlne.ws/3P5t9Hf

Citi Wins Age Discrimination Appeal With Ex-Banker Called ‘Old’ at Age of 55; Ex-banker won £2.7 million in employment tribunal suit; UK court will reconsider Citi’s evidence in ageist lawsuit
Katharine Gemmell – Bloomberg
Citigroup Inc. has won part of its appeal in a discrimination suit brought by a former banker who was laid off after being called “old” at the age of 55. Niels Kirk, a managing director for Citi’s energy banking desk, previously won his unfair dismissal suit against the bank in 2020 and was awarded nearly £2.7 million ($3.2 million). But a UK appeal court ordered the case to be reheard, saying that the employment tribunal needed to reconsider whether the redundancy was prompted by ageism given a relatively small age gap between Kirk and a 51-year-old colleague.
/jlne.ws/3AKu0Jj

JPMorgan Halts Share Buybacks as Earnings Miss Estimates; Bank adds $428 million to reserves for potentially bad loans
Dimon says firm preparing for ‘range of economic environments’
Hannah Levitt – Bloomberg
JPMorgan Chase & Co. temporarily suspended share buybacks and reported second-quarter results that fell short of analysts’ estimates, driving the stock lower. The buyback pause is needed to quickly meet higher capital requirements and “allow us maximum flexibility to best serve our customers, clients and community through a broad range of economic environments,” Chief Executive Officer Jamie Dimon said in a statement Thursday.
/jlne.ws/3IAGSDy

‘Don’t Fight It’: Hedge Funds, Wall Street Double Down on Dollar; Hedge funds, investment banks see dollar strength continuing; Catalysts range from hawkish Fed to global recession
Ruth Carson – Bloomberg
The dollar rally has room to run and those who stand in its way risk getting bowled over by its unstoppable strength. That’s the view of hedge funds and investment banks from New York to Melbourne as a Bloomberg gauge of the world’s reserve currency heads higher, breaking past its pandemic peak to a fresh record.
/jlne.ws/3c2hxpW

Regions

China Convenes Banks on Mortgage Boycott Roiling Markets;Officials asked for information on impact of housing loan snub; More buyers refuse to pay loans on unfinished home projects
Bloomberg News
Chinese authorities held emergency meetings with banks after growing alarmed that an increasing number of homebuyers across the country are refusing to pay mortgages on stalled projects, according to people familiar with the matter.
/jlne.ws/3yzF3Cm

Trafigura sells stake in Putin-backed oil project to obscure HK trading outfit; Nord Axis among group of entrants to have replaced established players in Russian market
David Sheppard, Tom Wilson and Harry Dempsey – FT
Commodity trader Trafigura has sold a multibillion-dollar stake in a giant Russian oil project to an obscure Hong Kong company that was set up just nine days before Russia invaded Ukraine. Trafigura said in a statement on Wednesday that its 10 per cent stake in Vostok Oil, a gargantuan Arctic development backed by Russian president Vladimir Putin, had been sold to “an independent Hong Kong registered trading company”, Nord Axis Limited.
/jlne.ws/3APnT6k

‘Exponentially’ risky China leaves venture capital funds starved of cash; Beijing’s tech crackdown and heightened political risk are freezing fundraising rounds for small and midsized groups
Ryan McMorrow and Nian Liu, Hudson Lockett and Tabby Kinder and Eleanor Olcott – FT
Clicking through his pitch deck, the cash-starved Chinese founder of a drone company has begun to wonder — do the investors sitting across the table even have money to spend?
/jlne.ws/3O7hpTi

Finance Hub That Hoped to Rival Canary Wharf Ends in Liquidation
Lucca De Paoli – Bloomberg
A Chinese-backed developer, tasked with building a business hub in London on derelict land overlooking the Thames, has collapsed into liquidation. The Royal Albert Dock, which sits east of Canary Wharf, has been mostly empty for years and now been taken over by lenders.
/jlne.ws/3zexym5

Colombian Central Banker Rejects Intervention to Stem Peso Drop; Co-director Villamizar sees risk weaker peso stokes inflation; Currency has suffered world’s biggest drop since June election
Matthew Bristow – Bloomberg
Colombia’s flexible peso helps the economy weather shocks, and the central bank should refrain from intervening to stem its recent plunge, according to one of the bank’s board members.
/jlne.ws/3P64a6Y

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