Tokyo Stock Exchange Trading Is Halted by System Problem

Oct 1, 2020

First Read

Hits & Takes
JLN Staff

The thing I like about JPX is that when one of their markets has an issue, they apologize for the inconvenience to investors. I appreciate their apology, even if it was the hardware’s malfunctioning’s fault.

Bloomberg is reporting that “Two Decades After Mad Cow, British Beef Is Heading to U.S. Again.” British beef is on the way to the U.S. for the first time in at least two decades, at a time when food remains a sticking point between the countries in post-Brexit trade talks.

Economist Austan Goolsbee has a commentary in the Wall Street Journal titled “Big Companies Are Starting to Swallow the World.” The exuberant rebound of large companies while their small competitors struggle will require more vigilant government antitrust action than ever before, an economist says.

The FINRA Foundation awarded the 2020 Ketchum Prize to Michael Morris, a key architect of the ABLE Act recognized for efforts to advance financial capability for people with disabilities.

This year the SEC has made a record 39 individual awards for its whistleblower program of approximately $175 million, more than in any previous fiscal year.

Brian Mehta of Trading Technologies has a commentary on Linkedin titled “Staying Creative,” about how to keep your team creative during this time of COVID-19 when everyone is working from home.

3PTS Communications is looking for a fintech intern in Chicago.

IEX is looking for a system reliability engineer – a.k.a. Dev Ops, Web Ops, or Systems Ops.

Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL

*****

Occurring on October 20 this year, the Annual Chicago Conference on Futures and Derivatives sponsored by Thompson Coburn and Exchange Analytics is taking the form of a webinar featuring panels on regulation and enforcement. The event moderator is Marc Nagel. Additional panel information and registration are available here.~Thom Thompson

Reminder: FIA is holding its Legal Opinions Primer webinar on Tuesday, 13 October from 14:00 PM – 15:00 PM BST. If you are an experienced user of FIA legal opinions, new to the world of FIA netting and other legal opinions for regulatory capital purposes or just curious as to why FIA maintains a library of legal opinions, tune in to hear experts from Clifford Chance LLP and FIA explain the types of legal opinions that FIA maintains, their structure and purpose in the context of regulatory capital requirements. You can go here to register.~SR

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Wall Street Rides is Virtual and Expanding
JohnLothianNews.com

This is the 6th year Wall Street Rides has held its event to raise money for autism research. Rides Far has raised over $1.5 million and has more than 35 corporate sponsors this year, including Cboe as a Diamond Sponsor. In this JLN video, Cboe Executive Vice President and Head of Markets Bryan Harkins talked with John Lothian about how the event is different this year in response to COVID, the community of people who sponsor and take part in the ride, and how it benefits those on the autism spectrum. This year, the opening ceremony will be streamed live on Facebook and Twitter and participants will ride individually wherever they are throughout the world.

Watch the video »

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Tim McCourt from the CME Group – Micro E Mini Options
JohnLothianNews.com

Tim McCourt, Managing Director and Global Head of Equity Products at the CME Group, discusses the launch, reception, and use of the CME’s new options contracts on its Micro E Mini S&P 500 and Nasdaq 100 futures.

Watch the video »

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Why Europeans no longer dream of America; It was once seen as a place of reinvention — but our attitudes to the US are shifting from envy to compassion
Simon Kuper – FT
In Franz Kafka’s first novel, Amerika (1927), a teenage boy from central Europe is sent to the US in disgrace, having “seduced” the family maid. (It later emerges that she — a giant, terrifying, Kafkaesque ogre — did the seducing.) In New York harbour, the boy is welcomed by a wealthy stranger: his uncle, who turns out to be a US senator. The ship’s captain offers congratulations: “A shining career awaits you now.”
/jlne.ws/36uhMoO

*****2020 has been more Kafkaesque than even Kafka could have imagined.~MR

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A YouTuber Hangs His Own Shingle With an Auction Website; Doug DeMuro has a strong following for his giddy videos about exotic and quirky cars. Cars & Bids, his new site, got off to a roaring start.
Imad Khan – WSJ
Making the most important pitch of his career, Doug DeMuro stood in cargo shorts in front of a camera, unwavering in his giddy demeanor. He was about to unveil his new car auction website to his 3.7 million YouTube subscribers. The site would feature cars “that I like most,” he said.
/jlne.ws/3ii5aDF

*****Look out for risks from left field. This one is from the rooftops outside of left field.~JJL

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Most executives seek work-life balance after experiencing pandemic blues: survey
Reuters
Nearly eight out of 10 corporate executives have experienced poor mental health during the coronavirus crisis, prompting a number of them to re-evaluate and improve work-life balance, a survey showed on Monday.
/jlne.ws/2ScwdFS

*****I am finding more work-life balance these days, but have to really try new things to find it.~JJL

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Wednesday’s Top Three
Our top story Wednesday, by a big margin, was Trump Embarrassed His Country and Himself, an opinion piece (about the debate, of course) by Jonathan Bernstein of Bloomberg. Second was One Eurex: welcome to our refreshed branding, Eurex’s introduction to their newly designed website and branding. Third was the Financial Times’s How ‘Davey Day Trader’ stoked a bond market rally, about a “dizzying rally in the bonds of Penn National Gaming.”

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CryptoMarketsWiki Website»
CryptoMarketsWiki, our archive of the cryptocurrency and blockchain world, is going strong and keeping pace as this area of finance grows and evolves.Recently Updated Pages

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Lead Stories

Tokyo Stock Exchange Trading Is Halted by System Problem; Shutdown blocks all trades for full day, in worst case since current system started in 1999
Suryatapa Bhattacharya and Kosaku Narioka – WSJ
The Tokyo Stock Exchange halted all stock trading for Thursday’s session due to a system problem, a rare glitch that market participants said could undermine trust in the exchange. After trading was halted for the morning session, the exchange said at midday that no trading would take place for the rest of the day. It later said it expected to resume normal trading Friday.
/jlne.ws/33o7sgx

Secretive High-Speed Trading Firm Hits Jackpot With TikTok; Susquehanna International Group is sitting on stake in app’s owner estimated at more than $15 billion
Rolfe Winkler, Jing Yang and Alexander Osipovich – WSJ
No matter the outcome of the struggle between China and the U.S. over video-sharing app TikTok, an unlikely winner will be a secretive trading firm based outside of Philadelphia. Susquehanna International Group LLP, an options-trading giant, has largely avoided publicity during its three-decade history. Susquehanna’s core business is using quantitative models and computers to execute rapid-fire trades in various markets. Such firms tend to rake in profits by making thousands of small trades a day, often holding securities for fractions of a second.
/jlne.ws/2HEnWIG

Brussels launches legal action against UK over Brexit deal breach; Von der Leyen says UK is breaking “good faith” obligations to the EU
Jim Brunsden and Peter Foster and George Parker – FT
Brussels is suing the United Kingdom over plans to violate last year’s Brexit withdrawal agreement, which could lead to Britain being hauled before the European Court of Justice.
/jlne.ws/33hBFNV

America Needs Rapid Covid Testing to Get Something Like Its Life Back; Imagine going safely to a bar, or a wedding, or parent-teacher night, without a vaccine. It’s still possible, if the U.S. can get its act together.
Drake B Bennett, Michelle Fay Cortez – Bloomberg
As undergraduates returned to the University of Arizona for the fall semester, many of the new precautions were hard to miss. Plexiglass dividers were affixed in front of lecterns and between lab benches. Giant tents were set up so students arriving early for a class could wait outdoors, sheltered from the punishing sun. Roving teams of student “health ambassadors” tooled around in golf carts, handing out masks and politely chiding their peers for standing less than 6 feet apart.
/jlne.ws/30pdjjB

Fintech Startups Founded by Women Have Harder Time Raising Cash
Elaine Chen – Bloomberg
Study finds they take in 50% less than male-founded firms; Deloitte urges investors to root out biases in VC decisions
Funding for female entrepreneurs in financial technology has grown in recent years, yet startups founded by women still face more difficulties raising cash than do other firms, a study shows.Women-founded fintechs raised an average of 50% less capital over the past five years than startups founded only by men, consulting firm Deloitte said in a report Thursday. Firms with a team of men and women founders took in just 3% less in funding.
/jlne.ws/3kWOt2i

China Tech to Face Even Closer Scrutiny From Global Governments
Bloomberg News
More countries will unite against Beijing’s tech push: report; Chinese firms seen as ‘malign actors’ because of party links
China’s tech companies will face a tougher time globally as digital decoupling accelerates and countries with shared values join forces to promote their technology standards and ethics, according to a report from the Hinrich Foundation. Moves by the U.S. against companies such as TikTok, WeChat, Huawei Technologies Co. and Semiconductor Manufacturing International Corp. are only the beginning of a deeper shift that will also see the European Union and international organizations rethink how they engage with Chinese technology, said the Asia-based foundation set up by U.S. entrepreneur Merle Hinrich.
/jlne.ws/3l7Cij9

America’s Economy Has Broken the Curse of the ’70s; Cheaper energy is a boon to workers and the Fed.
Conor Sen – Bloomberg
The Federal Reserve spent the past several years shifting to a policy framework that emphasizes employment more and inflation less. This made it more patient with business cycle expansions, which is one reason median household incomes grew more in the late 2010s than they did in the late 1990s.
/jlne.ws/3iezgba

Fed Caps Big Banks’ Dividends, Halts Share Buybacks in Fourth Quarter
Central bank extends restrictions on dividends, buybacks, amid cloudy economic outlook
Andrew Ackerman – the Wall Street Journal
The biggest U.S. banks will face restrictions on dividends and share buybacks for another three months, the Federal Reserve said Wednesday, citing the need to conserve capital during the coronavirus-induced downturn.
The Fed said it would maintain prohibitions on share buybacks and a cap on dividend payments by 33 banks with more than $100 billion in assets until the end of year. The restrictions, imposed for the third quarter, were due to expire Wednesday.
/on.wsj.com/3cMg6s6

U.S. Banks Pull More Assets From London Ahead of Crucial Brexit Deadline; London’s position as a gateway to Europe for U.S. banks is being eroded
Jem Bartholomew – WSJ
London’s standing as the one-stop shop for American banks doing business in Europe is slipping, as lenders speed up movement of people and assets from the U.K. to the continent before a Brexit transition period ends Dec. 31. For decades, American banks poured resources into London as it became the gateway to Europe’s rapidly developing capital markets and securities trading was deregulated. Now, hundreds of employees at banks including JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley are moving to Frankfurt, Paris and other European hubs before the transition period ends.
/jlne.ws/2SfgeXB

A Record 3 Trillion Euros Is Looking for a Home
James Hirai – Bloomberg
ECB’s short-term funding rate falls to lowest level on record; Banks took 174.5 billion euros of cheap ECB loans last week
The European Central Bank’s emergency stimulus has propelled excess cash sloshing around the euro area’s economy past 3 trillion euros ($3.5 trillion) for the first time. Financial institutions have increased the amount of money parked with the ECB by 1 trillion euros in under six months, according to the central bank’s latest liquidity update. It comes after policy makers issued cheap loans to banks and snapped up bonds to offset the economic damage from the coronavirus pandemic.
/jlne.ws/2SePSVH

Two Decades After Mad Cow, British Beef Is Heading to U.S. Again
Megan Durisin and Michael Hirtzer – Bloomberg
U.K. resumes shipments ahead of end of Brexit transition; Agriculture talks have proven tense in free-trade discussions
British beef is on the way to the U.S. for the first time in at least two decades, at a time when food remains a sticking point between the countries in post-Brexit trade talks. The first shipment left on Wednesday from a plant in Northern Ireland, and trade could total 66 million pounds ($85 million) over the next five years, the U.K. government said in a statement. The U.S. had banned British supplies since a mad-cow disease outbreak in Europe in 1996, but lifted restrictions earlier this year.
/jlne.ws/33izF85

Fed Caps Big Banks’ Dividends, Halts Share Buybacks in Fourth Quarter; Central bank extends restrictions on dividends, buybacks, amid cloudy economic outlook
By Andrew Ackerman – WSJ
The biggest U.S. banks will face restrictions on dividends and share buybacks for another three months, the Federal Reserve said Wednesday, citing the need to conserve capital during the coronavirus-induced downturn.
/jlne.ws/2HNDWs4

Goldman Sachs to go ahead with ‘modest’ job cuts after coronavirus pause
By Reuters Staff
Goldman Sachs Group Inc GS.N plans to move forward with “a modest number of layoffs”, a company spokesperson said on Wednesday, months after the Wall Street bank paused job cuts due to the COVID-19 pandemic.
/jlne.ws/3l0nxPl

Wall Street is ‘doomsday prepping’ for the election. It might not be necessary
Matt Egan, CNN Business
The first presidential debate of 2020 didn’t exactly scream “peaceful transfer of power.” If anything, the debate debacle and President Donald Trump’s false claims of a “rigged” election, underscore why investors have been bracing for election-related market turbulence.
/jlne.ws/3kX7dPc

EU financial services chief will cut off City of London if necessary
Francesco Guarascio, Huw Jones – Reuters
The European Union is ready for every type of Brexit, including granting no further EU access to Britain’s financial sector, the bloc’s candidate for financial services chief said in a document seen by Reuters.
/jlne.ws/36uxU9Q

The Negative-Rate Debate Is Dying on the Vine; Subzero policy rates are now so unattractive that the biggest economic shock in modern history couldn’t drive central bankers to deploy them
Mike Bird – WSJ
From 2014 to 2016, central banks increasingly adopted negative interest rates in response to sliding inflation. At the time, economists and investors could reasonably wonder whether subzero monetary policy was the path of the future for the developed world.
/jlne.ws/3ng5Nl5

ESG groups zero in on tax avoidance; Today’s top sustainability news, including: UK stewardship overhaul, UN PRI swings the axe and gender-equality investing gets a boost
Gillian Tett, Billy Nauman, Patrick Temple-West, Attracta Mooney and Kristen Talman – FT
One thing to start?.?.?.?Moral Money’s Redefining Capitalism: Building Back Better Summit kicks off today, September 30 and continues through October 1. Join us for two days of discussions looking at how business and finance could (and should) be reshaped in a post-pandemic world.
/jlne.ws/30o6C10

Big Companies Are Starting to Swallow the World; The exuberant rebound of large companies while their small competitors struggle will require more vigilant government antitrust action than ever before, an economist says.
Austan Goolsbee – WSJ
The next six months could witness one of the biggest consolidations of corporate power in the United States in almost a century, yet a variety of legal and economic factors may leave the federal government unable to stop it.
/jlne.ws/3l4EMik

Coronavirus

Covid-19 Vaccine Trials Need Only a Fraction of People to Get Sick; Late-stage trials evaluating safety, efficacy of coronavirus vaccines are waiting for 150-160 cases to crop up
Jared S. Hopkins – WSJ
Late-stage trials for Covid-19 vaccines are signing up tens of thousands of volunteers, but only a tiny fraction will help decide whether the shots work safely enough to be given widely. Just 150 or so of the 30,000 or more subjects enrolled in each trial need to be infected and show symptoms to provide the data to assess the vaccines, according to a Wall Street Journal review of researchers’ plans for U.S. studies from the four most advanced candidates.
/jlne.ws/3cLblyW

Covid: we’re in the same storm but not the same boat; Those with capital are doing well through the pandemic, while those without are suffering
Gillian Tett – FT
Last week I was chatting with a London-based childhood friend, Tony (now an author and entrepreneur), who said he was worried about how Covid-19 was creating “the three Bs” among his acquaintances. Some had become desperately “bored” after being mostly trapped for six long months in their domestic surroundings. Others were facing “burnout” because they had been toiling insanely hard on open-all-hours digital platforms — sometimes combined with childcare.
/jlne.ws/34iSFTz

Covid-linked debt rush ignites direct lending market; More big companies expected to spurn their banks for $1bn-plus funding deals
Nikou Asgari and Robert Smith – FT
Bombardier had always relied on its banks to raise large amounts of funding, but when the Canadian aircraft maker needed a $1bn loan at the height of the coronavirus crisis it turned elsewhere: to a private investment firm.
/jlne.ws/33kF3Yx

FDA widens probe into AstraZeneca Covid vaccine; Europe readies rolling reviews of potential jabs as US broadens inquiry into adverse reaction
Donato Paolo Mancini – FT
The US Food and Drug Administration has widened its probe into an adverse event involving a patient on a trial for the coronavirus vaccine that AstraZeneca is developing with the University of Oxford, according to people briefed on the matter.
/jlne.ws/2GquHgR

Johnson ‘will not hesitate’ to impose more virus restrictions; Imperial College study gives hope growth in infection rate is slowing in UK
Jim Pickard, Jasmine Cameron-Chileshe, Daniel Thomas and Sarah Neville – FT
Boris Johnson has put the British public on notice that more coronavirus restrictions could be imposed soon as his chief scientific adviser admitted the virus was not “under control”.
/jlne.ws/3n9pFG7

Malaysia Virus Cases Jump Most Since June After Sabah Vote
Yudith Ho and Yantoultra Ngui – Bloomberg
Malaysia saw the highest daily surge in new coronavirus cases since June as infections spread in Sabah after local elections. The country confirmed 260 new infections on Thursday, according to the health ministry, with 118 reported in the Borneo state. All but one of the new cases originated in the country, mostly linked to people traveling from the eastern state.
/jlne.ws/36orCsu

City of London’s Socially Distanced Streets May Be Here to Stay
Greg Ritchie – Bloomberg
Cars diverted from key roads in Square Mile recovery plan; Changes seen becoming permanent by City’s planning chair
The City of London’s traffic-lite streets look set to outlast the pandemic. Rules introduced over the summer to maintain social distancing in the financial district have seen wider footpaths, driving lanes narrowed and in some cases timed road closures. But as officials eye an enduring shift away from motor vehicles, many of the changes could stay even if the pandemic ceases to be a major issue in the near future.
/jlne.ws/3ilAzoC

German Cases Jump; Israel Sees Record Infections: Virus Update
Bloomberg News
Global coronavirus cases approached 34 million, with Germany reporting the highest number of infections since April. Israel saw a record 8,919 new cases after a dip over the holiday weekend. Spain ordered additional restrictions on movement and gatherings in Madrid, while the U.K. extended a ban on household mixing to Liverpool and several cities in the northeast of England.
/jlne.ws/36lUx0n

Most Executives Think Covid-19 Changed Their Companies Forever
Alexandre Tanzi – Bloomberg
About 60% accelerating digital transformation at their firms; Two-thirds of executives say projects now meet less resistance
Many of the changes to global business triggered by Covid-19 will prove lasting. A survey released Wednesday by the IBM Institute of Business Value identified a “culture shift” at corporations worldwide, and concluded that “executives must accept that pandemic-induced changes in strategy, management, operations and budgetary priorities are here to stay.”
/jlne.ws/34eLVWD

Exchanges, OTC and Clearing

Treatment of Trades from tomorrow and after at arrowhead
JPX
Currently, the Tokyo Stock Exchange is proceeding without problems toward resumption of trading at arrowhead and TSE plans to conduct trading on auction market and ToSTNeT market as usual from tomorrow and after. We apologize for any inconvenience this may cause to investors and market participants.
/jlne.ws/2ESk5XC

Handling of Tomorrow’s Trading (Oct. 2)
JPX
Today, trading on arrowhead and ToSTNeT for all listed symbols was halted for the whole day. The handling of tomorrow’s trading (i.e., Oct. 2) will be announced when ready (around 19:30 JST, Oct. 1). If trading is to be conducted as usual, the handling of the various trading procedures will be as follows. We apologize for the inconvenience this may cause to investors and trading participants.
/jlne.ws/3ijMbJ4

Tokyo Stock Market Halts Trading for a Day, Citing Glitch; The exchange’s operator said it planned to resume trading on Friday after a technical problem left investors unable to place orders.
Ben Dooley – NY Times
The Tokyo Stock Exchange shut down for the day on Thursday as its operator raced to solve a technical glitch that halted equities trading throughout the world’s third- largest economy.
/jlne.ws/3cR2TOD

Tokyo’s bourse to reboot trading on Friday after worst outage since 1999; World’s third-biggest equity market shut down for entire day due to system error
Leo Lewis and Kana Inagaki – FT
The Tokyo Stock Exchange has announced that trading will resume on Friday, after a hardware glitch caused equity trading to be suspended for a full day in the worst outage since the world’s third-biggest bourse shifted to a fully electronic system in 1999.
/jlne.ws/2SdKIJo

Exchange Outage is Latest Blow to Tokyo’s Financial Hub Dreams
Gearoid Reidy – Bloomberg
The unprecedented outage that scrapped trading on the Tokyo Stock Exchange for the entire day Thursday is the last thing local authorities need at a time when Japan is seeking to reinvent the capital as a global financial hub. As China clamps down further on Hong Kong, some in Japan have seen the opportunity to realize a long-held vision of making the Japanese capital more attractive to international financial firms and lure highly paid professional.
/jlne.ws/2G7PwOp

Blackout at Tokyo Stock Exchange as critical malfunction hits cash equities system; Tokyo Stock Exchange suffers trading shut down for entire day as cash equities system arrowhead is hit by a major hardware malfunction.
Annabel Smith – The Trade
Trading has been halted at the Tokyo Stock Exchange has been shut down completely following a major hardware malfunction on its cash equities system arrowhead. The Japan Exchange Group (JPX), the Tokyo exchange’s parent company, said in a statement on Thursday that a switch to a backup hardware due to a glitch had not worked as intended, forcing it to shut down trading in all listed symbols.
/jlne.ws/2Gq8FuE

New Zealand stock exchange information chief resigns after four-day hacking scandal; Chief information officer at NZX, David Godfrey, will be leaving the company at the end of this year following the exchange’s four-day closure last month.
Annabel Smith – The Trade
The chief information officer at the New Zealand Exchange (NZX) has resigned one month after the markets operator suffered a cyber-attack that forced it to close for four days. NZX confirmed that David Godfrey has resigned and will leave at the end of 2020 after more than 11 years with the stock exchange. He had been chief information officer since February 2016 and had previously held various senior IT leadership roles.
/jlne.ws/3ii7ZEL

BME launches big data platform for TCA and best execution service;
The new big data platform from BME will aim to reduce computing times and provide customised MiFID II-compliant reporting to clients.
Annabel Smith – The Trade
Spanish stock exchange Bolsas y Mercados Españoles (BME) has unveiled a new big data platform to boost its transaction cost analysis (TCA) and best execution service.
/jlne.ws/2Gtou3r

Healthcare Activos Yield Socimi trading on Euronext Access Paris
Euronext
Euronext, Europe’s leading capital markets operator, today announced that 114,459,600 shares of Healthcare Activos Yield, a Socimi created in August 2019 by Healthcare Activos and Altamar Capital Partners, have begun trading on Euronext Access Paris. The incorporation of this Spanish Socimi confirms Euronext’s position as a reference market for European companies in the real estate sector and the trust joins another eight Spanish Socimi that have already listed on Euronext in 2020.
/jlne.ws/2Sgpf2Q

Eurex gaining ground on Asian MSCI underlyings; Following the announcement that Singapore Exchange will delist its MSCI products, Eurex reports increasing market shares in its Asia-based MSCI contracts.
Eurex
The Singapore Exchange announced in May 2020 that it will delist its MSCI futures by February 2021. This will include MSCI Taiwan Futures, which are popular with local traders.
/jlne.ws/3iqZA24

Clearstream completes acquisition of a majority stake in Fondcenter AG from UBS
Deutsche Börse Group
The resulting Clearstream Fund Center provides fund distribution support with over $ 290 billion in assets under management; UBS enters into long-term commercial agreements for the Clearstream Fund Center to provide services
Clearstream, Deutsche Börse Group’s post-trade service provider, completed the acquisition of a majority stake in the UBS fund distribution platform Fondcenter AG on September 30th. The 51.2 percent stake in the B2B platform for fund sales support at a purchase price of CHF 389 million was announced by Clearstream and UBS in January 2020. With a minority stake of 48.8 percent, UBS remains a strategic partner and enters into long-term agreements for Clearstream to provide services, including continued use of the Fund Center platform.
/jlne.ws/33kasdv

ASX welcomes ASIC’s and RBA’s reaffirmation of their expectations for CHESS replacement
ASX
ASX welcomes the ASIC and RBA announcement today that reaffirms their expectations for the implementation of the CHESS replacement system. Throughout the project, which commenced in December 2017, ASX has appreciated the strong engagement with ASIC, RBA, ACCC and Treasury. This engagement will continue and includes a comprehensive independent assurance program regarding the readiness of the new system.
/jlne.ws/2ScvS62

Nasdaq Announces 2020 Investor Day
Nasdaq
Nasdaq, Inc. (Nasdaq: NDAQ) will host its 2020 Investor Day on Tuesday, November 10, 2020 via live webcast. Adena Friedman, President and CEO, and other members of Nasdaq’s senior leadership team will host presentations about the company’s operations and strategy. The Investor Day’s virtual format will provide analysts and investors with the ability to participate in live Q&A sessions with Nasdaq’s senior leadership team.
/jlne.ws/2SfHrJH

CME Globex Notices: September 28, 2020
CME Group
Critical System Updates
iLink 2 on MSGW Decommission – February 26, 2021
New – iLink MSGW Configuration on sftpng.cmegroup.com – This Friday NEW
Update on Order Routing and Front-End Audit Trail Requirements for iLink 3
iLink Enhancements for Location ID and Displayed Quantity – November 15
New – iLink 3 SBE Schema Update – January 24, 2021 NEW
New – Phase 1 CME FX Link Enhancements – February 21, 2021 NEW
New – Phase 1 CME FX Link Enhancements: Drop Copy Impact – February 21, 2021 NEW
/jlne.ws/3cOptrg

Notice of Disciplinary Action: 303 Proprietary Trading LP
CME Group
EXCHANGE RULE: Rule 432.W. General Offenses
It shall be an offense for any party to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchange.
PENALTY: In accordance with the settlement offer, the Panel ordered 303 Prop to pay a fine of $50,000.
/jlne.ws/3jnIy5W

Notice of Disciplinary Action: Brendan Delovitch
CME Group
EXCHANGE RULE: Rule 575 DISRUPTIVE PRACTICES PROHIBITED
All orders must be entered for the purpose of executing bona fide transaction. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes. A. No person shall enter or cause to be entered an order with an intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.
PENALTY: In accordance with the settlement offer, the Panel ordered Delovitch to pay a $50,000 fine. The Panel also suspended Delovitch from access to any trading floor owned or controlled by CME Group and from direct and indirect access to any designated contract market, derivatives clearing organization or swap execution facility owned or controlled by CME Group for 4 months, beginning on the effective date below and continuing through and including January 30, 2021.
/jlne.ws/2ShJFIK

Notice of Disciplinary Action: 303 Proprietary Trading LP
CME RULE VIOLATION: Rule 432.W. General Offenses
It shall be an offense for any party to fail to diligently supervise its employees and agents in the conduct of their business relating to the Exchange.
PENALTY: In accordance with the settlement offer, the Panel ordered 303 Prop to pay a fine of $25,000.
/jlne.ws/3jpjr2M

Notice of Disciplinary Action: Wesley Johnson
CME Group
CME RULE VIOLATION: Rule 575 DISRUPTIVE PRACTICES PROHIBITED
All orders must be entered for the purpose of executing bona fide transaction. Additionally, all non-actionable messages must be entered in good faith for legitimate purposes. A. No person shall enter or cause to be entered an order with an intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution.
PENALTY: In accordance with the settlement offer, the Panel ordered Johnson to pay a $35,000 fine. The Panel also suspended Johnson from access to any trading floor owned or controlled by CME Group and from direct and indirect access to any designated contract market, derivatives clearing organization or swap execution facility owned or controlled by CME Group for 4 months, beginning on the effective date below and continuing through and including January 30, 2021.
/jlne.ws/3iiaTt9

SGX wins Exchange of the Year again at FOW Asia Capital Markets Awards for pan-Asia waterfront of derivatives
SGX
Multi-asset approach critical in helping clients manage risk amid heightened uncertainty; Focus on customer-first execution across equities, currencies and commodities
Singapore Exchange (SGX) has again won the “Exchange of the Year” accolade at the FOW Asia Capital Market Awards 2020 for its leadership in supporting clients with a pan-Asia waterfront of derivatives, amid heightened uncertainty in global markets.
/jlne.ws/2SgLbus

Guidance on the Conduct of General Meetings Amid Evolving COVID-19 Situation; Joint Statement by Accounting and Corporate Regulatory Authority, Monetary Authority of Singapore and Singapore Exchange Regulation
SGX
The Accounting and Corporate Regulatory Authority (“ACRA”), the Monetary Authority of Singapore (“MAS”) and Singapore Exchange Regulation (“SGX RegCo”) have updated a checklist to guide listed and non-listed entities[1] on the conduct of general meetings (“Checklist”) arising from the latest updates from the Multi-Ministry Taskforce to ease safe management measures to facilitate business operations.
/jlne.ws/2GtrfBP

Boerse Stuttgart Records September Turnover Of Around EUR 7,9 Billion – Equities, Securitised Derivatives And ETPs Show Significant Increase In Trading Volume Compared To September 2019
Mondovisione
Based on the order book statistics, Boerse Stuttgart generated turnover of around EUR 7,9 billion in September 2020 – an increase of around 47 per cent compared to the same month of the previous year.
/jlne.ws/3n7inCO

DGCX’s Recently Launched FX Rolling Futures Contracts Deliver Significant Value To Market Participants Amidst Ongoing Currency Volatility
Mondovisione
Moving into the final quarter of 2020, the Dubai Gold and Commodities Exchange (DGCX) maintained its strong momentum, providing investors with a wide range of derivative products to manage their risk effectively. Last month, the DGCX’s three newly launched FX Rolling Futures Contracts – Euro (EUR), Pound Sterling (GBP) and Australian Dollar (AUD), all against the US Dollar (USD) – saw an increase in trading activity, and have now traded a combined total of 6,449 lots valued at USD 75 million since their launch in July.
/jlne.ws/2Gj2w3F

Fintech

Fintech Startups Founded by Women Have Harder Time Raising Cash
Elaine Chen – Bloomberg
Funding for female entrepreneurs in financial technology has grown in recent years, yet startups founded by women still face more difficulties raising cash than do other firms, a study shows.
/jlne.ws/3iksyAv

EY faces mounting backlash after Wirecard whistleblower revelation; German politician warns accountancy firm ‘could face its Arthur Andersen moment’
Olaf Storbeck – FT
EY faced a mounting backlash from investors and German politicians across the political spectrum after it emerged that one of the accountancy firm’s own employees flagged potential fraud at Wirecard four years before the company collapsed.
/jlne.ws/33kFtOB

TRADE Talks: Bloomberg on cloud technology; The TRADE’s editorial team is back in the latest podcast episode to discuss the industry’s adoption of cloud technology with head of cloud enterprise data at Bloomberg, Corey Albert.
Kiays Khalil – The Trade
The TRADE’s editorial team is back in the latest podcast episode covering the latest news and people moves. Reporters Annabel Smith and Kiays Kahlil and editor Hayley McDowell are joined by Bloomberg’s head of cloud enterprise data, Corey Albert, who discusses adoption of cloud technology and issues faced during the coronavirus pandemic.
/jlne.ws/3jnGdrG

BT Signs New Deal With The World’s Largest Interdealer Broker – TP ICAP To Benefit From Enhanced Customer Experience, Deeper Insights And New Compliance Tools http://
Mondovisione
BT today announced a seven-year contract with TP ICAP, a leading provider of market infrastructure. The new contract will provide its 700-strong broker team in London with a secure, software-based platform and applications featuring remote working capabilities. The new service will further strengthen TP ICAP’s execution services across voice trading venues.
/jlne.ws/36uwlbY

Horizon Software Named Best Multi-Asset Trading System Of The Year At FOW And Global Investor Asia Capital Market Awards 2020
Mondovisione
Horizon Software (Horizon), provider of electronic trading solutions and algorithmic technology for the global capital markets, today announced that it has won the FOW and Global Investor Asia Capital Market Awards in the ‘ Best Multi-Asset Trading System of the Year’ category.
/jlne.ws/2GgI5Ej

Cryptocurrencies

Twitter’s Jack Dorsey Slams Coinbase for Its No-Politics Stance
Vlad Savov – Bloomberg
Twitter Inc. Chief Executive Officer Jack Dorsey joined a chorus of criticism for Coinbase Inc.’s newly announced policy of not debating politics at work, saying it runs counter to the core principles of cryptocurrency. In reaction to Coinbase CEO Brian Armstrong’s blog post arguing that the company should be mission-focused and not “advocate for any particular causes or candidates internally that are unrelated to our mission, because it is a distraction,” Dorsey argued that the whole purpose of currencies like Bitcoin, which is traded on Coinbase, is social activism.
/jlne.ws/3n4hZVM

SEC wins court bid for summary judgment in ICO lawsuit against Kik
Michael McSweeney – The Block
U.S. Judge Alvin Hellerstein sided with the U.S. Securities and Exchange Commission on Wednesday, ruling in favor of the agency’s motion for summary judgment in its lawsuit against tech company Kik and the $100 million initial coin offering (ICO) that triggered the long-running legal dispute. The September 30 opinion by Hellerstein noted that “[t]he U.S. Securities and Exchange Commission (“SEC” or “Plaintiff’) filed this action against Kik Interactive Inc. (“Kik” or “Defendant”), alleging that Kik’s unregistered offering of digital tokens violated Section 5 of the Securities Act.
/jlne.ws/2HCQiD9

ECB Applies for ‘Digital Euro’ Trademark Amid Feasibility Study
Carolynn Look and Lorcan Roche Kelly – Bloomberg
Officials due to release assessment on digital currency soon; Central banks globally are exploring new payment technologies
The European Central Bank has applied to trademark the term “digital euro” as officials prepare to release an assessment of the benefits and drawbacks of creating a digital version of the currency.
/jlne.ws/2SgyG20

Nigerians bypassing bank transfers with crypto
Olumide Adesina – Nairametrics
The high penetration of mobile phone usage in most African countries, particularly in Nigeria, has resulted in the rise of remittance rates and payments for goods and services. According to the World Bank, Africa’s largest economy is one of the six largest recipients of remittances in the world, attracting $24 billion in 2019, which made up 5% of the country’s GDP. The financial market turmoil triggered by COVID-19 has definitely changed the way Nigerians view the whole financial system, as data also obtained from Google trend, shows Nigeria leading the pack around the world in Bitcoin searches. So, it not surprising that a significant number of young Nigerians, and small business owners avoid Nigerian banks, because of their stringent capital controls on outflows, relatively high transaction costs, and inflexible exchange rate system.
/jlne.ws/3n8q9ww

Bitcoin Posts Biggest Monthly Price Loss Since March
Omkar Godbole – Coindesk
Bitcoin faced selling pressure in September as the U.S. dollar rose against major currencies for the first time in six months. Bitcoin fell by over 7% over the period – the biggest monthly percentage decline since March, according to CoinDesk’s Bitcoin Price Index. Back in March, prices fell by nearly 25% as the coronavirus-induced crash in the global equity markets triggered a global dash for cash, sending the dollar higher. Bitcoin’s latest monthly decline is again accompanied by an uptick in the greenback.
/jlne.ws/34acMmG

Bittrex Sets Up New Cryptocurrency Exchange in Bermuda
Aziz Abdel-Qader – Finance Magnates
The Bermuda government has awarded Bittrex Inc., a Seattle-based cryptocurrency exchange that lets users swap nearly 200 digital assets, a formal license under their Digital Assets Business Act of 2018 (DABA). Bittrex is in the process of opening a Bermuda office and intends to hire up to three people in 2020 with plans for further hires as the business grows. From its Bermuda hub, Bittrex will offer additional digital asset services over time subject to further approval by the BMA, such as futures.
/jlne.ws/33j9Vst

Record $166M Ethereum Fees Last Month Were Six Times Bigger than Bitcoin’s
Paddy Baker – Coindesk
Ethereum miners earned over six times more in fees compared to those working on Bitcoin in September. Glassnode data shows Ethereum’s total transaction fees stood at an all-time high of $166 million for the month – far more than the $26 million taken in Bitcoin fees. Ethereum fees long trailed those on Bitcoin, but have been on a tear over the past few months as surging interest in DeFi led to record transaction volumes.
/jlne.ws/3n4VfF3

*****Don’t you just hate when the price of gas goes up?~MR

Australia to Spend $575M on Tech Including Blockchain to Boost Pandemic Recovery
Daniel Palmer – Coindesk
Australian Prime Minister Scott Morrison has announced that the federal government has set aside nearly A$800 million (US$575 million) to invest in digital technologies as part of its coronavirus recovery plan. Morrison announced the news Tuesday, saying that the funding is aimed to help the country’s businesses recover from the economic effects of the COVID-19 outbreak, as well as create more jobs.
/jlne.ws/33hiKTq

MakerDAO Adds Chainlink, Compound, Loopring as Collateral Options
Colin Harper – Coindesk
The MakerDAO community has voted to add support for a trio of new tokens for the decentralized finance (DeFi) loans that generate DAI stablecoins. Vaults are now open for deposits of Chainlink’s LINK, Loopring’s LRC and Compound’s COMP. Community members pitched proposals to add the tokens this summer and voted for their integration via Maker’s on-chain governance platform this week.
/jlne.ws/3jnJ7g4

SEC Orders Salt Lending to Offer Refunds to Investors in Its $47M ICO
Paddy Baker – Coindesk
The top U.S. financial watchdog has ordered Salt Lending to offer investors refunds for its 2017 initial coin offering (ICO). The Securities and Exchange Commission (SEC) told Salt Blockchain Inc., the owner of the lending platform that offers dollar-denominated loans collateralized by cryptocurrencies, that it would have to begin the process of offering refunds to investors. It will have 14 days to issue a press release, announcing the order, on its website. In a public letter, the SEC said Salt’s ICO violated securities regulations by not registering the sale beforehand.
/jlne.ws/36rppMT

DeFi Buzz Drove Record $12M Earnings This Summer, Says Ethereum Miner HIVE Blockchain
Paddy Baker – Coindesk
HIVE Blockchain has reported its best-ever quarter, as the mining firm raked in record fees from the frenzied activity in decentralized finance (DeFi) over the summer. The Toronto-listed mining company released its unaudited results Thursday, saying it mined a total of 32,000 ether (ETH) and 121,000 ethereum classic (RTC) in the second fiscal quarter ending Sept. 30. Per CoinDesk’s price data, that comes to nearly $11.8 million for mining ether, and a further $664,000 for ethereum classic – approximately $12.4 million at time of writing.
/jlne.ws/30kpa2k

Politics

Biden Has 78% Chance of Winning Presidency, Forecasters Say; They raise his chances 3 percentage points a day after a tumultuous debate
By Peter Coy – Bloomberg
Democratic presidential candidate Joe Biden is a strong favorite to be elected, according to professional forecasters. They raised his probability of victory by 3 percentage points a day after a wild debate in which President Trump repeatedly interrupted Biden and moderator Chris Wallace, while the former vice president called Trump a clown, a liar, and a racist.
/jlne.ws/348mlSY

Drudge Report, a Trump Ally in 2016, Stops Boosting Him for 2020; A rift between the president and the online news pioneer Matt Drudge is playing out in pithy headlines and needling tweets as the campaign heats up.
Tiffany Hsu – NY Times
Something has changed at Drudge Report, the influential site known for its tabloid-poetry headlines and conservative take on the news, and don’t think the president hasn’t noticed.
/jlne.ws/2SdvQe3

For the Sake of Democracy, Cancel the Trump-Biden Debates; The president is maneuvering to steal the election. Why help him?
Frank Bruni – NY Times
Little more than 12 hours after the conclusion of the most chaotic, counterproductive and outright offensive American presidential debate in my lifetime, the Commission on Presidential Debates promised unspecified format changes in the two remaining faceoffs between Donald Trump and Joe Biden so that the events would be more orderly, which is to say watchable at all.
/jlne.ws/3ilriNm

Debate Gives Fresh Notoriety to Vice Co-Founder’s Proud Boys
Gerry Smith and Rachel Adams-Heard – Bloomberg
Gavin McInnes built hipster empire, then a brawling fraternity; Trump’s call to ‘stand by’ raises specter of violence Nov. 3
President Donald Trump elevated the stature of the Proud Boys during Tuesday’s debate when he urged the hard-right group to “stand back and stand by” ahead of the Nov. 3 election. He also capped the unlikely journey of founder Gavin McInnes from scrappy punk-rock entrepreneur to extremist political provocateur.
/jlne.ws/3cNVHCU

(Podcast, 9 min.) Big Donors & Pay-To-Play Politics
Sarah Kleiner, Sally Herships, Stacey Vanek Smith – NPR
We all know people with lots of money can gain special political access, but we don’t typically get an up-close look. Today, The Indicator explores the world of big donors and the millions they give openly as well as behind the scenes through dark money. Dark money is a largely unregulated channel of shadowy non-profit organizations that can spend unlimited amounts on political ads, and has enormous influence over the policies and laws that get enacted in this country. Today on the show, The Center for Public Integrity shares an excerpt from its new podcast, The Heist, which talks to one rich donor about how the system works.
/jlne.ws/3n7gpSW

Ukrainian Politics Again Get the Better of a Would-Be Reformer
Kateryna Choursina and Daryna Krasnolutska – Bloomberg
A reformer is stepping aside in Ukraine for the second time in less than five years — and with a similar feeling of unease. Aivaras Abromavicius, who quit the previous administration complaining about corruption, is awaiting President Volodymyr Zelenskiy’s approval to resign as head of state-controlled arms producer Ukroboronprom. While this time his exit is planned, there are parallels — namely what he deems waning appetite to tackle graft and overhaul the economy.
/jlne.ws/3cLhAmt

Trump Moves to Expand Rare Earths Mining, Cites China Threat
Joe Deaux and Ranjeetha Pakiam – Bloomberg
Directs Interior Department to explore Defense Production Act; Order to be signed on way to campaign stop in Minnesota
President Donald Trump signed an executive order aimed at expanding domestic production of rare-earth minerals that are vital to many critical manufacturing sectors, reducing dependence on China.
/jlne.ws/3jmueKX

Regulation

Former Leighton executive’s successful appeal results in acquittal
ASIC
On 30 September 2020, the NSW Court of Criminal Appeal allowed Mr Peter Gregg’s appeal against his conviction of two counts of falsifying the books of Leighton Holdings Limited (LHL). On 29 August 2019, Mr Gregg was convicted in the NSW District Court of two offences contrary to s 1307(1) of the Corporations Act 2001 (Cth). It was alleged that, as an officer of LHL, he engaged in conduct that resulted in the falsification of the books of the company (19-196MR).
/jlne.ws/33jjU11

ASIC and RBA announce expectations for CHESS replacement
ASIC
ASIC and the Reserve Bank of Australia (RBA) (the regulators) have outlined their expectations of ASX as it replaces the Clearing House Electronic Sub-register System (CHESS). This follows the release today of the RBA’s 2020 Assessment of ASX Clearing and Settlement Facilities.
/jlne.ws/3ifKYSN

ESMA updates statements on the impact of Brexit on MiFID II/MiFIR and the Benchmarks Regulation
ESMA
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has updated two statements on its approach to the application of key provisions of MiFID II/MiFIR and the Benchmark Regulation (BMR).
/jlne.ws/33lLHOl

2020 FINRA Small Firm Virtual Conference
FINRA
This one-day conference is held online and focuses on effective practices and tips for complying with FINRA rules — from the unique perspective of small firms. The conference brings together experts, executives and policy makers to share their specialized knowledge and experiences. The Small Firm Virtual Conference is a hybrid of live and recorded sessions and it is designed to facilitate meaningful dialogue on a range of topics in an educational format. During the event, attendees can meet one-on-one with FINRA staff during office hours.
/jlne.ws/33gQY9N

FINRA Foundation Awards 2020 Ketchum Prize to Michael Morris; A Key Architect of the ABLE Act Recognized for Efforts to Advance Financial Capability for People with Disabilities
FINRA
The FINRA Investor Education Foundation (FINRA Foundation) today awarded Michael Morris the 2020 Ketchum Prize—its highest honor—for his extraordinary leadership in creating a better economic future for people with disabilities through advocacy, research and education.
/jlne.ws/3iokRJw

No, FINRA Did Not Approve That Security for Trading
FINRA
Investors should be aware that news reports stating that FINRA has approved a security for trading, quoting or listing are wrong in virtually every respect. In fact, FINRA does not ever qualitatively evaluate or approve a security such as a stock. Instead, it verifies that a broker-dealer can demonstrate it has completed its required diligence to begin quoting a security.
/jlne.ws/2GlZb3s

SEC Charges Hospitality Company for Failing to Disclose Executive Perks
SEC
The Securities and Exchange Commission today announced settled charges against Virginia-based hospitality company Hilton Worldwide Holdings Inc. for failing to fully disclose perquisites and personal benefits provided to executive officers. The action was generated by the Division of Enforcement’s use of risk-based data analytics to uncover potential violations related to corporate perquisites.
/jlne.ws/3jlfmwy

SEC Charges HP Inc. With Disclosure Violations and Control Failures
SEC
The Securities and Exchange Commission today announced charges against technology company HP Inc. for misleading investors by failing to disclose the impact of sales practices undertaken in an effort to meet quarterly sales and earnings targets. HP has agreed to pay $6 million to settle the charges.
/jlne.ws/3jplgg8

SEC Whistleblower Program Ends Record-Setting Fiscal Year With Four Additional Awards
SEC
The Securities and Exchange Commission today announced awards to four individuals for total payments of almost $5 million. Each of these whistleblowers provided critical information that alerted the Commission of the alleged wrongdoing and resulted in successful enforcement action. This year the SEC has made a record 39 individual awards of approximately $175 million, more than in any prior fiscal year.
/jlne.ws/3cQPbLU

SEC Awards Almost $30 Million to Two Insider Whistleblowers
SEC
The Securities and Exchange Commission today announced an award of almost $30 million to two insider whistleblowers whose tips led SEC staff to open an investigation. The first whistleblower, who was the first to alert SEC staff of potential wrongdoing and provided substantial, ongoing assistance, received an award of approximately $22 million. The second whistleblower provided additional valuable information, and received an award of approximately $7 million.
/jlne.ws/3ikFZjN

Morgan Stanley Agrees to Pay $5 Million for Reg SHO Violations in Prime Brokerage Swaps Business
SEC
The Securities and Exchange Commission today announced settled charges against Morgan Stanley & Co. LLC for violations of Regulation SHO, the regulatory framework governing short sales.
/jlne.ws/2GnUnKU

CFTC Orders Morgan Stanley Capital Services LLC to Pay $5 Million for Swap Data Reporting Failures
CFTC
The Commodity Futures Trading Commission today announced that it has filed and settled charges against Morgan Stanley Capital Services LLC, a provisionally registered swap dealer, for failing to comply with swap data reporting obligations.
/jlne.ws/2Gkyc8p

CFTC Orders Chicago Broker to Pay Over $495,000 for Supervision Failures and Failure to Report Suspicious Activity
CFTC
The Commodity Futures Trading Commission today issued an order filing and simultaneously settling charges against A&A Trading, Inc., a registered introducing broker located in Chicago, Illinois, for failing to file a suspicious activity report (SAR) and to diligently supervise its employees’ handling of certain customer accounts. The order requires A&A Trading to pay a civil monetary penalty of $400,000 and to disgorge $95,329 earned in connection with its violations. This action was brought in connection with the Division of Enforcement’s Bank Secrecy Act Task Force.
/jlne.ws/2GnXkLt

CFTC Orders Sunoco to Pay $450,000 for Spoofing in Crude Oil, Gasoline, and Heating Oil Futures Contracts
CFTC
The Commodity Futures Trading Commission today issued an order filing and settling charges against Sunoco LP, a master limited partnership organized in Delaware and headquartered in Dallas, Texas, for spoofing—bidding or offering with the intent to cancel the bid or offer before execution.
/jlne.ws/2Sfq6k7

Supporting Statement of Commissioner Dan M. Berkovitz Regarding Sunoco Enforcement Action and Opposing “Bad Actor” Waiver
CFTC
I support the Commission’s enforcement against Sunoco LP for the spoofing of the crude oil, gasoline, and heating oil futures markets. However, I oppose the CFTC’s determination that Sunoco’s conduct should not result in any disqualifications under the “bad actor” provisions of the securities laws. The CFTC has neither the authority to make this determination, nor the tools to adequately protect investors in the securities markets.
/jlne.ws/3ifO21f

CFTC Orders Texas Man to Pay Over $1 Million for Misappropriating Confidential Information, Fictitious Trading, and False Statements
CFTC
The Commodity Futures Trading Commission today issued an order filing and settling charges against Marcus Schultz of Houston, Texas, for engaging in a fraudulent scheme to misappropriate his employer’s confidential information and enter into fictitious trades. Schultz is also charged with making false statements to the CFTC and ICE Futures US.
/jlne.ws/3jwL9KQ

FCA publishes rules that will apply at the end of the transition period
UK FCA
The FCA has published an updated version of the FCA Handbook to show the rules that will apply at the end of the transition period. It has also set out details on how it intends to use the Temporary Transitional Power (TTP).
/jlne.ws/33haHpS

Ontario Securities Commission Announces Activities For World Investor Week And Investor Education Month http://
Mondovisione
The Ontario Securities Commission (OSC) today announced several investor education and outreach activities during World Investor Week and Investor Education Month in October. Ontarians are encouraged to participate virtually and learn about improving their finances and making informed investing decisions.
/jlne.ws/2Gj7nBI

Ontario Securities Commission Requests New Members For The Registrant Advisory Committee
Mondovisione
The Ontario Securities Commission (OSC) is seeking applicants for membership on its Registrant Advisory Committee (RAC).
/jlne.ws/36oNLXt

New Zealand Council Of Financial Regulators: Updated Timetable Of Regulatory Initiatives
Mondovisione
In April 2020, the Council of Financial Regulators published a table of deferred regulatory initiatives due to COVID-19. This has now been updated to guide financial services businesses on future initiatives.
/jlne.ws/36paCm6

Investing and Trading

ECB Steps Up Support for Credit Markets; Central bank more than tripled its corporate-bond buying last week, compared with the same week in August
Anna Hirtenstein – WSJ
The European Central Bank is ramping up its corporate-bond purchases, increasing its support for the region’s companies as weaker economic data weigh on credit markets. The central bank bought EUR2.6 billion, equivalent to $3 billion, of company debt in the week ended Sept. 25—a third more than the previous week and over three times higher than the last week of August, according to ECB data. Since the market turmoil began in March, it has increased its corporate bondholdings by close to EUR40 billion.
/jlne.ws/3ijDnmu

Oil bankruptcies could shift clean-up bill to US taxpayers; Insurance covers just a fraction of the estimated $280bn cost of plugging wells
Myles McCormick – FT
US taxpayers could be left footing a bill of tens or even hundreds of billions of dollars to clean up oil and gas wells across the country as a growing number of producers collapse into bankruptcy, according to a new report.
/jlne.ws/3jxPttH

‘Safety trades’ fail to offset stock market’s turbulent September; Historic correlations broke down leaving traditional hedges useless as equities tumbled
Michael Mackenzie and Eric Platt – FT
Assets including gold and US Treasuries failed to provide the hedge in September that they normally do in a stock market rout, compounding investors’ woes in the worst month for global equities since the coronavirus nadir in March.
/jlne.ws/2HJrQQB

The Stock Market Had an Awful September. Here’s What History Says Happens Next.
Ben Levisohn – Barron’s
A great quarter ended with a miserable September—something that has only happened once before, at least to this extent. That complicates things heading into what has historically been a good month for the stock market.
/jlne.ws/30qq4ub

Why Are Markets So Calm About the Second Wave? Evidence is building that herd immunity may be closer than many had predicted.
John Authers – Bloomberg
Is there a deeper wave than this? Britain is once again tearing itself apart over how to respond to Covid-19, with Prime Minister Boris Johnson facing an insurrection from his own MPs over plans for sweeping second lockdowns to combat the coronavirus. Worries about an uptick in cases in the U.S. have contributed to the market turbulence over the last few weeks.
/jlne.ws/34guYew

Environmental, Social and Corporate Governance

Avoiding ‘sin stocks’ is no longer enough for ESG ETFs; Managers are switching to positive screening for investments with good credentials
Emma Boyde – FT
Traditional socially responsible exchange traded funds that rely on simply excluding “sin stocks” and other securities linked to sectors such as coal mining or tobacco look set to become a thing of the past, data show.
/jlne.ws/2GiSQGd

Cambridge University Makes $4.5 Billion Fossil-Fuel Divestment Promise; The university said it’ll quit coal and gas investments by 2030 and pledged to boost its renewables portfolio
Todd Gillespie and Akshat Rathi – Bloomberg
After five years of sustained pressure that saw students protest and graffiti on ancient buildings, Cambridge University has committed to divesting its endowment from fossil fuels in a more comprehensive way than its peers have done so far.
/jlne.ws/3jlvnCy

PIMCO Launches PIMCO ESG Income Fund
Globenewswire (press release)
PIMCO, one of the world’s premier fixed income investment managers, has launched the PIMCO ESG Income Fund, which targets investments with strong Environmental, Social and Governance (ESG) credentials, while aiming to maintain a high and consistent level of dividend income for investors. The fund will be managed by a team of senior portfolio managers averaging more than 20 years of investment experience: Joshua Anderson, Managing Director; Jing Yang, Executive Vice President; Jelle Brons, Executive Vice President; Dan Ivascyn, PIMCO Group Chief Investment Officer and Managing Director; and Alfred Murata, Managing Director.
/jlne.ws/3cLmOP0

A $2.5 Billion Hedge Fund Boss Says Clients Balk at ESG Risks
Love Liman – Bloomberg
A $2.5 billion Swedish hedge-fund manager says clients would like to put their money into sustainable investing strategies, but are unsure of the potential trade-off when it comes to returns. Serge Houles, managing director and chief client officer at Stockholm-based IPM, says there’s not enough information about the impact on returns of switching to investments based on environmental, social and governance goals.
/jlne.ws/2GnVYjS

‘We’ve reached a historic crossroads’
Silvia Pavoni – The Banker
Sir Ronald Cohen and Standard Chartered CEO Bill Winters debate whether tougher ESG measures need to be enforced. Often referred to as the godfather of impact investing, Sir Ronald Cohen is the chairman of the Global Steering Group on Impact Investment. He has worked with Harvard Business School on research of 1,800 companies around the world, which found that more than 250 of them create more environmental damage than they do profit; while nearly 600 cause environmental damage equivalent to 25% of their profits. Mr Cohen is calling for the adoption of impact-weighted accounting to reveal a company’s true value.
/jlne.ws/34cC7fK

California Rolls Out Diversity Quotas for Corporate Boards; State’s new requirements for racial and other minority representation follow gender mandate
Anne Steele – WSJ
California Gov. Gavin Newsom signed legislation Wednesday that will require the boards of publicly traded companies based in the state to have at least one racially, ethnically or otherwise diverse director by 2021.
/jlne.ws/34j6Tnr

Institutions

H2O suffers payment problems on illiquid bonds; Luxury lingerie maker La Perla missed 7.25% annual interest payment in March
Cynthia O’Murchu and Robert Smith – FT
H2O Asset Management has faced serious payment issues on illiquid bond investments this year, including an unpaid interest bill from an Italian lingerie maker that appeared to constitute a default.
/jlne.ws/3cTEKaf

SoftBank: technology evangelist or hedge fund? Arm sale reflects transition of Masayoshi Son’s company to a global manager of assets
Leo Lewis and Kana Inagaki, Arash Massoudi – FT
In fairy tales, a crystal ball can be many things: it can reveal the future, but it can also be a malevolent charm that drives peaceful villagers insane with greed. The former rather than the latter is what Masayoshi Son had in mind in 2016 when, after paying $32bn to buy Arm — the most aggressive gamble of his life at the time — he described the UK chip designer as “my crystal ball”.
/jlne.ws/3n6lGub

Hedge Funds Eye $140 Million Payday From PizzaExpress
Katie Linsell – Bloomberg
Auction is being held Thursday to settle credit insurance; Swaps paying out as part of PizzaExpress debt overhaul
The rescue of troubled U.K. restaurant chain PizzaExpress is bringing a windfall to some. Hedge funds that bought credit insurance are receiving a payout Thursday from an auction to settle credit-default swaps. The initial auction set the value of the payout at about 97%, amounting to compensation of $138 million. The final results of the auction will be released at 3:00 p.m. London time.
/jlne.ws/36lWM3G

Deutsche Bank’s Compliance Missteps Get Personal for CEO Sewing
Benjamin Bain – Bloomberg
SEC demands bank chief certify adherence to swaps settlement; Firm says it’s ‘committed’ to complying with U.S. regulations
Deutsche Bank AG’s regulatory headaches just got personal for Chief Executive Officer Christian Sewing. The 50-year-old banker now has to annually certify that the German lender is adhering to a recent settlement in which U.S. authorities fined the firm for violating swaps reporting rules. The unusual requirement, which could hold Sewing accountable for future missteps by the bank, follows years of compliance failures that have put Deutsche Bank under the microscopes of Washington watchdogs. Many precede his tenure as CEO.
/jlne.ws/33kzhWO

Goldman Job Cuts Drive 2020 Global Banker Cull Toward 70,000
Nicholas Comfort – Bloomberg
More than 30 lenders are reducing their workforces this year; Sabadell’s U.K. unit and Intesa Sanpaolo also announce cuts
The global cull of banking jobs continues with Goldman Sachs Group Inc. joining the growing list of lenders resuming cuts paused during the coronavirus pandemic.
/jlne.ws/2HQ8MQZ

Barclays appoints new global markets head in major leadership overhaul; An internal memo from Barclays chief, Jes Staley, has confirmed that the bank’s group chief risk officer will replace Stephen Dainton as global head of markets.
Annabel Smith
Barclays has appointed a new global head of markets to replace current markets head Stephen Dainton under sweeping changes to the institution’s leadership.
/jlne.ws/3igClYp

Major Global Banks Invest $20 Million In Biocatch And Join American Express Ventures On New Client Innovation Board
Pioneer in using online behavior for fraud detection and consumer protection extends funding round
Press Release via Newswire
BioCatch, the global leader in behavioral biometrics, today announced that four major global banks – Barclays, Citi, HSBC and National Australia Bank (NAB) – have invested $20 million in the company, extending the company’s recent Series C fundraising round to a total of $168 million raised.
/bwnews.pr/2GfppF8

Regions

South Korea’s Market Rebound Heats Up Argument Over Bringing Back Short Selling; The country is keeping in place for a year a ban on the practice introduced in March, when markets convulsed
Frances Yoon – WSJ
Surging stocks. A foreign buyers’ strike. Death threats. Short selling, or betting stocks will fall, has become a heated issue in South Korea, which has banned the practice for a year even though its market has staged a strong rebound.
/jlne.ws/3l2JOfh

Venezuela’s Food Chain Is Breaking, and Millions Go Hungry; A report found 13% of children under 5 are stunted; oil-rich nation is ‘on the edge of an irreversible catastrophe’
John Otis – WSJ
Ana Nuñez, a 62-year-old retired municipal worker in western Venezuela, says her meals often consist of just a few corn-flour pancakes, known as arepas. Even when she has money to buy groceries in the city of Maracaibo’s teeming flea market, she said that “instead of quality food they sell garbage, like animal hides and rotten cheese.”
/jlne.ws/3ifDi2V

Brexit

Brexit talks: what are the main obstacles to a deal? As deadline to secure agreement nears, EU-UK negotiators seek route to final ‘submarine’ phase
Jim Brunsden – FT
EU-UK trade talks have survived a rocky September, capped by outrage in Europe over moves by the UK prime minister Boris Johnson to violate last year’s Brexit deal. But hard yards lie ahead if they are to succeed.
/jlne.ws/34haKkG

EU to Start Legal Action Against U.K. on Internal Market
Alberto Nardelli, Ian Wishart, and Nikos Chrysoloras – Bloomberg
The bloc sent a ‘letter of formal notice’ on Thursday; The process could end up at the European Court of Justice
The European Union is starting legal proceedings against the U.K. over Boris Johnson’s plan to breach terms of its Brexit divorce deal and break international law. “The commission has decided to send a letter of formal notice to the U.K. government,” European Commission president Ursula von der Leyen announced in Brussels on Thursday. “This draft bill is by its very nature a breach of the obligation of good faith laid down in the Withdrawal Agreement.”
/jlne.ws/2Gn12VR

Brexit Prompts 7,500 City Jobs, $1.6 Trillion to Leave U.K.
Viren Vaghela – Bloomberg
Financial services firms operating in the U.K. have shifted about 7,500 employees and more than 1.2 trillion pounds ($1.6 trillion) of assets to the European Union ahead of Brexit — with more likely to follow in coming weeks, according to EY. About 400 relocations were announced in the past month alone, the consulting firm said in a report on Thursday that tracks 222 of the largest financial firms with significant operations in the U.K. Since Britain voted to leave the bloc in 2016, the finance industry has added 2,850 positions in the EU, with Dublin, Luxembourg and Frankfurt seeing the biggest gains.
/jlne.ws/34ioHyX

Support for Brexit is collapsing as poll finds shrinking minority of British people still back leaving the EU
Thomas Colson – Business Insider
A growing number of British people believe it was wrong for the UK to leave the EU. A new poll found that Brexit regret is at its highest level since the 2016 referendum. The survey comes as the UK and EU engage in a period of intense negotiations as they try to negotiate a free trade agreement to avoid a no-deal Brexit in January. Just 28% of people think the government is handling Britain’s exit from the EU well, compared to 61% who think the government is handling it badly.
/jlne.ws/2EOdMEk

EU financial services chief will cut off City of London if necessary
Francesco Guarascio, Huw Jones – Reuters
The European Union is ready for every type of Brexit, including granting no further EU access to Britain’s financial sector, the bloc’s candidate for financial services chief said in a document seen by Reuters.
/reut.rs/34ibaqS

Miscellaneous

Cinema Trade Group Says 70% of Smaller U.S. Theaters May Fail
Kelly Gilblom – Bloomberg
Owners, directors are asking asked Congress to OK relief funds; Largest U.S. cinema chains have struggled during pandemic
Almost three-quarters of small and midsize cinemas in the U.S. are at risk of bankruptcy, and about 100,000 people who work in the industry could lose their jobs as a result of the pandemic, according to the National Association of Theatre Owners.
/jlne.ws/3ikr09N

Google to Pay Publishers Over $1 Billion for News Content
Natalia Drozdiak – Bloomberg
News Showcase product launches in Germany, Brazil Thursday; News publishers have pressured Google for years over payment
Alphabet Inc.’s Google will start paying select media outlets to display curated content on its news app in a concession to the industry which has accused the search engine and other tech giants of unfairly using content for years.
/jlne.ws/33iYOQh

Irish court rules Subway bread is not bread
Helen Sullivan – The Guardian
The Irish Supreme court has ruled that the bread served at Subway – a US sandwich food chain with branches in more than 100 countries – cannot be defined as bread.
Under Ireland’s Value-Added Tax Act of 1972 it cannot even be defined as a staple food, according to the Irish Independent, because it contains too much sugar.
/jlne.ws/36oJlQI

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