Trafigura warns oil prices could reach ‘parabolic state’ in threat to economy

Jun 8, 2022

First Read

Hits & Takes
John Lothian & JLN Staff

A key piece of news Sarah Rudolph reported yesterday in JLN was the new board of directors of the FIA, including the first female chairman in the organization’s history, Alicia Crighton of Goldman Sachs & Company.

This is a great move for an organization that has been a leader in diversity and inclusion in our industry. Congratulations to Alicia and good luck during your term(s).

Here are the opening remarks of Walt Lukken, President and CEO of FIA, from the IDX conference yesterday titled “Capturing opportunities in commodities, sustainability and digital assets.”

Jeremy Grant moderated a terrific panel today at IDX on sustainability with the following panelists:

– Gordon Bennett, Managing Director of Utilities Markets, ICE
Neil Eckert, Chairman, IncubEx
– Georgina Hallett, Chief Sustainability Officer, LME
Owain Johnson, Global Head of Research and Product Development, CME Group
Randolf Roth, Member of the Executive Board, Eurex

I am off to give a short speech to the AFM annual meeting after lunch today. I am going to talk about the ethical and moral aspects of making a market, the importance of listening to young people, and how to innovate in the markets.

IDX had about 1100-1200 people at the event yesterday, FIA European head Bruce Savage told me in an interview today. I also interviewed LME’s Georgina Hallett today. Yesterday I interviewed FIA Tech’s Andrew Castello and Stable’s Richard Counsell.

Without a team of people dedicated to conducting interviews, I am not doing the same number of interviews. But I am spending quality time connecting with a conference community that is much younger than in years past.

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


CME Group is offering an online event on Wednesday, June 15, at 9:00 – 10:00 a.m. CT, 10:00 – 11:00 a.m. ET, called “Rising Rates and Treasury Futures Webinar: What the Increase Means for Investors and Traders.” Subject matter experts featured on the webinar include: Bluford Putnam, Chief Economist, Erik Norland, Executive Director of Economic Research, and David Gibbs, Director of Education, discussing what the increased rates could mean for investors and traders of fixed income products. You can go here for more information and to register. ~SR


SIFMA’s Ellen Greene Talks CAT, Regulation Surplus and Retail Trading in JLN OIC 2022 Interview

John Lothian News Interviewed Ellen Greene at the 2022 Options Conference in San Antonio, Texas, about what SIFMA is.

We asked Greene about the consolidated audit trail and how this data repository was doing since it started in 2020.

Greene spoke about how important protecting the data of the CAT is and how to do that.

Watch the video »


JJ Kinahan Talks Tastytrade, Growth Potential and Getting the Band Back Together

The last time JJ Kinahan attended the Options Conference he was with TD Ameritrade, which years before had bought the firm he worked for, Thinkorswim. Kinahan recently rejoined the owners of Thinkorswim in their new firm, tastytrade, as chief market strategist and vice president.

JLN interviewed Kinahan at the 2022 Options Conference about tastytrade. We also asked him about the impact of IG Group buying tastytrade.

Watch the video »


CERC Chooses Vermiculus’ Clearing Solution to Revolutionize the Receivables Market
Vermiculus has been chosen to deliver a real-time clearing solution to CERC, the main financial market infrastructure specialized in receivables in Brazil. In this cooperation, Vermiculus will provide a solution based on its modern clearing system, VeriClearTM, which is an elastically scalable and AI-powered real-time clearing system. CERC has the mission to make the market of receivables more efficient and reliable and aims to achieve this by efficiently connecting stakeholders of multiple economic sectors. Attaining this demands a system with immense architectural integrity and flexibility that can adapt to the vast, diverse, and always changing requirements. It also seeks to maintain its cloud integration and therefore requires the most modern architectural solution. Furthermore, with CERC’s rapidly increasing business, the need for a multi-functional and greatly advanced settlement clearing system is paramount.

****Nils-Robert Persson has been hopping from IDX to The AFM Annual Meeting. Great to see him. ~JJL


Regulators take aim at ‘wild west’ carbon offset market; Booming sector can be a cheap but opaque way for polluters to claim emission reductions
Patrick Temple-West – FT
Carbon offsets — as a financial product — have quickly developed into a $1bn market, embraced by many companies. But, at the same time, banks and regulators have been expressing growing concern about the integrity of offsets as a commodity. As corporate boards raced to announce their net zero carbon emission targets, carbon offsets, or ‘credits’, rose from relative obscurity to become a widely used, and cheap, tool for enabling successes to be claimed.

****** Gary “Wild Bill” Gensler??? ~JJL


Remote work in Bali? Indonesia plans five-year ‘digital nomad’ visa
As companies like Airbnb adopt a “work-from-anywhere” model, prospective “digital nomads” need to think about where they want to base themselves. Perhaps the sun-drenched vineyards of Tuscany? The gleaming skyscrapers of Dubai? Or how about the sandy tropical beaches of Bali?

**** I’m willing to take one for the team and test this out for our company. ~JB
**** I am willing to send you a one way ticket to Bali.~JJL


Tuesday’s Top Three
Our top story Tuesday was the TT press release, Trading Technologies and Talos Enter into Strategic Partnership, Vastly Expanding TT Crypto Offering. Second was FIA announces new board members, first female chair, from the FIA. And third was Chicago’s $20 Million Club packs ’em in as pay soars for local CEOs, from Crain’s Chicago Business.


MarketsWiki Stats
26,847 pages; 238,711 edits
MarketsWiki Statistics


Lead Stories

Trafigura warns oil prices could reach ‘parabolic state’ in threat to economy; Commodity trader’s chief says energy situation ‘critical’ as Russia sanctions squeeze supplies
David Sheppard and Tom Wilson – FT
The head of Trafigura has warned that the oil market could reach a “parabolic state” this year with prices surging to record highs and triggering a slowdown in economic growth. Jeremy Weir, chief executive of the commodity trader, said that energy markets were in a “critical” state as sanctions on Russia’s oil exports following its invasion of Ukraine had exacerbated already tight supplies created by years of under-investment.

SEC’s Trading Shake-Up Expected to Face Heavy Opposition; Proposed changes to how individual investors’ stock orders are processed grew out of frenzied trading in meme stocks in 2021
Alexander Osipovich – WSJ
The Securities and Exchange Commission’s expected changes to U.S. stock-trading rules are likely to prompt fierce opposition from the brokerages and electronic market-making firms that handle small investors’ orders, analysts and traders say. The agency is preparing to propose major changes to the stock market’s plumbing as soon as this fall, The Wall Street Journal reported Monday. SEC Chairman Gary Gensler is expected to outline some of the SEC’s plans Wednesday in a speech. The changes grew out of the frenzied trading in GameStop Corp. and other meme stocks in early 2021, which resulted in heavy scrutiny of the handling of individual investors’ trades.

Citadel Securities Ready for Crypto ETFs When Regulators Approve; Concern about volatility, fraud have blocked approvals; If regulators agree, demand will follow, Citadel’s Laing says
Katherine Doherty and Claire Ballentine – Bloomberg
Ken Griffin’s Citadel Securities is willing to make markets in exchange-traded funds that hold cryptocurrencies, if regulators allow it. “We will be ready if and when those products are approved, but we are taking a measured approach,” Kelly Brennan, head of the firm’s ETF group, said in an interview at Bloomberg’s headquarters in New York, adding that the firm can’t provide liquidity until regulatory issues are resolved.

Citadel Securities, Virtu Build Crypto Plan With Brokerages; Market makers form consortium with Fidelity and Charles Schwab; Platform could be available by end of year, or early next year
Katherine Doherty and Annie Massa – Bloomberg
Citadel Securities and Virtu Financial Inc. are building a cryptocurrency trading platform along with retail brokerages Fidelity Investments and Charles Schwab Corp. The market makers are developing a crypto offering with help from Fidelity and Schwab that would increase access to digital assets, according to people familiar with the matter, who asked not to be identified discussing the private plans. The product, still in its early development, could be available late this year or early next, the people said.

New York-based Digital Asset to help Japan’s financial giant SBI develop ‘smart yen’
Rita Liao – TechCrunch
SBI Holdings, a Japanese securities and banking giant that launched a crypto-asset fund for retail investors last year, has been actively investing in the infrastructure that will allow it to roll out more crypto products. The firm has recently made a strategic investment in Digital Asset, a New York-based startup known for building enterprise blockchain solutions, it said in an announcement. As part of the deal, the pair are launching a joint venture this year to operate across East Asia, which includes Japan and South Korea.

SEC aims to stem trading practice of ‘payment for order flow’; Regulators are asking whether retail investors are better off when brokers ‘sell on’ their trades to wholesalers, for a fee
Philip Stafford – FT
US regulators want to reform the controversial Wall Street trading practice known as ‘payment for order flow’, whereby retail brokers collectively make billions of dollars a year selling their customers’ orders to the country’s biggest trading firms. The Securities and Exchange Commission (SEC) has been looking at the inner workings of share trading in the US after pandemic lockdowns prompted an explosion of activity among private retail investors.

BIS: Blockchain Scalability And The Fragmentation Of Crypto
Frederic Boissay, Giulio Cornelli, Sebastian Doerr and Jon Frost – Mondovisione
Key Takeaways: Permissionless blockchains work by providing monetary incentives to decentralised validators. Yet the mechanism for maintaining these incentives necessarily entails congestion effects and high fees. These high fees encourage the use of alternative chains, leading to a fragmentation of the crypto landscape. Newer blockchains have higher capacity, even if these come at the cost of greater centralisation and weaker security. Differences in the design also preclude blockchain interoperability. Limited scalability and a lack of interoperability not only prevent network effects from taking root, but a system of parallel blockchains also adds to governance and safety risks. Despite fragmentation, cryptocurrencies on different blockchains exhibit strong price co-movements, as they often share the same investor base, and growth is sustained by speculative buying of coins.

UK ‘gambling’ with financing of its flagship levelling up fund, MPs warn; Public accounts committee says ministers ‘retrofitted’ criteria for winning bids for £4.8bn scheme to cut regional inequalities
Peter Foster – FT
Boris Johnson’s government appears to be “gambling” with hundreds of millions of pounds of taxpayers’ money through the chaotic administration of its flagship levelling up fund, MPs have warned. Ministers “retrofitted” the criteria for winning bids to the £4.8bn fund for reducing regional economic inequalities and then failed to evaluate the effects of grants that were awarded, according to a report published on Wednesday by the House of Commons public accounts committee.

British Gas owner Centrica warns windfall tax will hit investor confidence; Energy group rules out legal challenge despite concerns
Gill Plimmer – FT
British Gas owner Centrica will not launch a legal challenge against the UK chancellor’s windfall tax but warned the levy would damage investor confidence. Scott Wheway, Centrica’s chair, was asked by shareholders at the company’s annual general meeting in Leicester if he would challenge the decision by the UK government to impose a 25 per cent tax on North Sea oil and gas.

Retail Trading Is About to Change; Also Texas v. Twitter, Tiger, SEC v. Binance, CFTC v. Gemini and stock market liquidity.
Matt Levine – Bloomberg
Retail investors in US stock markets get to trade for free and get really good execution on their stock trades.
Everybody is mad about it. Retail investors get free trades because wholesale market makers pay retail brokers for the privilege of trading with their customers’ orders, which means that the retail brokers can make lots of money without charging commissions. They get good execution because (1) it is very pleasant for those market makers to trade with retail orders, which are less dangerous, less likely to suffer from adverse selection, than institutional orders on the stock exchange, and (2) the market makers compete with each other to execute those orders efficiently, and if they do not give retail orders good execution then the retail brokers will send the orders to other market makers. I am not going to rehash this in detail because nobody ever changes their mind, but I have written about it extensively here.
/ Misled Investors Ahead of Stalled SPAC Deal, Former Executive Alleges; Departed executive Sarah Pierce says she was retaliated against for raising concerns
Ben Foldy – WSJ
A former senior executive at alleged in a lawsuit that the online mortgage lender misled investors in financial filings and other representations it made as it attempts to go public. Sarah Pierce,’s former executive vice president for sales and operations, alleged in the suit that Chief Executive Vishal Garg and the company misrepresented’s business and prospects to keep investors onboard with a planned merger with a special-purpose acquisition company, or SPAC. The deal was agreed to in May 2021 and has yet to close.

Ukraine Invasion

Plan to ship grain out of Ukraine dealt blow due to mines; Turkish offer to escort ships through Black Sea blockade would face six-month wait for mine clearance, says Ukraine
Daniel Boffey and Joanna Partridge – The Guardian
A plan mediated by Turkey amid a global food crisis to open shipping corridors out of Ukrainian ports has been dealt a blow as officials in Kyiv said it would take six months to clear the coast of Russian and Ukrainian mines. As Russia’s foreign minister, Sergey Lavrov, arrived in Ankara on Tuesday, Turkey’s defence minister, Hulusi Akar, said in a statement that his government was making progress with the UN, Russia and Ukraine on reopening ports under Russian blockade in the Black Sea. Ships leaving Ukrainian ports would be escorted by Turkish naval vessels under the proposal being discussed.

Ukrainian grain may be leaving ports — but on Russian ships, US official says; The war in Europe’s breadbasket is fueling hunger crises around the world.
Shannon K. Crawford and Morgan Winsor – ABC News
There is evidence of Russian vessels departing “from near Ukraine with their cargo holds full of grain,” a U.S. Department of State spokesperson told ABC News on Monday night. The Ukrainian Ministry of Foreign Affairs has reported that Russia seized at least 400,000 to 500,000 tons of grain worth over $100 million, according to the State Department spokesperson. “Ukraine’s MFA also has numerous testimonies from Ukrainian farmers and documentary evidence showing Russia’s theft of Ukrainian grain,” the spokesperson said. The news of Ukrainian grain aboard Russian ships partly confirms a recent report by The New York Times that Moscow is seeking to profit off of grain plundered from Ukraine by selling the product while subverting sanctions. Ukraine has already accused Russia of shipping the stolen grain to buyers in Syria and Turkey.

Netflix, BlackRock CEOs Among Those Newly Sanctioned by Russia; Bosses, government officials are sanctioned by Moscow after raft of economic measures taken against officials and oligarchs by the West
Ann M. Simmons – WSJ
A handful of prominent American CEOs, including BlackRock Inc.’s Larry Fink and the bosses at Delta Air Lines Inc., Netflix Inc. and Universal Pictures, have landed on a fresh list of sanctions Russia has imposed in retaliation for blistering economic restrictions the West has rolled out against Moscow. The U.S., U.K. and the European Union have issued sanctions on a widening array of entities and individuals they say are complicit in Russia’s invasion of Ukraine or are close to Russian President Vladimir Putin. That has included a long list of Russian officials, legislators and military officers. Governments have also targeted Russian billionaire business people and friends and family of Mr. Putin. The individual sanctions vary widely by capital, but typically involve travel restrictions and asset freezes.

Kyiv asks for more rocket systems as Kremlin warns of potential strikes in Russia
Andrew Jeong, Lateshia Beachum and Mary Ilyushina – The Washington Post
Ukraine says it needs 60 multiple-launch rocket systems to have a chance at defeating Russia, suggesting the number pledged by the West so far may be inadequate, along with access to sophisticated air defenses to help protect vulnerable citizens from relentless shelling. Oleksiy Arestovych, an adviser to Ukrainian President Volodymyr Zelensky, told the Guardian that 60 launchers would stop Russian forces “dead in their tracks.” Forty would slow them down with heavy casualties, he said, while 20 would increase Russian casualties but leave the battlefield outcome little changed.

Trading in Russian debt stalls as US spells out ban; Banks effectively halt dealings in country’s bonds after clarification over secondary market, say fund managers
Tommy Stubbington – FT
Trading in Russian government bonds has ground to a halt after the US Treasury moved to bar American investors from buying the country’s debt in the secondary market. Fund managers said most banks had all but ceased transacting in Russia’s government bonds after the Treasury on Monday clarified that earlier sanctions blocking investments in Russia applied to existing as well as new debt. Russian dollar bonds fell in price by about 3 cents on the dollar to roughly 25 cents on Tuesday as investors and brokers scrambled to interpret the new guidance.

West needs to act fast to tackle food crisis — and Moscow’s blame game; G7 countries will outline global initiatives this month to help prevent hunger as Russia weighs on grain importers
Emiko Terazono – FT
The west’s mobilisation to address the global food crisis caused by the war in Ukraine is recognition that millions could face starvation in Africa, the Middle East and Asia, as the conflict shakes commodity markets and leaves vulnerable grains importers on the verge of catastrophe. But it is also a tacit acknowledgment of the geopolitical risks of letting Moscow blame sanctions for surging food prices.

Exchanges, OTC and Clearing

BOX Options Market: Upcoming Enhancements To Complex Orders
Effective June 13, 2022, BOX Options Market LLC (“BOX”) will offer enhanced functionality for Complex Orders trading on BOX. Specifically, Participants will now have the ability to create Complex Orders with up to 16 legs.

Borsa Istanbul: Announcement On Responsible Supply Chain Practice
To Whom It May Concern: Borsa Istanbul’s explanations regarding the two issues stated in the general questions from the liable parties regarding the implementation of the responsible supply chain regulations of our Exchange are shared below.

CME Group Chairman and Chief Executive Officer Terry Duffy to Present at Piper Sandler Global Exchange and FinTech Conference
CME Group
CME Group announced today that Terry Duffy, Chairman and Chief Executive Officer, will present at the Piper Sandler Global Exchange and FinTech Conference on Thursday, June 9, 2022, at 10:30 a.m. (Eastern Time).

Farmer sentiment plummets as production costs skyrocket
CME Group
The Purdue University/CME Group Ag Economy Barometer dropped to its lowest level since April 2020, down 22 points in May to a reading of 99. Agricultural producers’ perceptions regarding current conditions on their farms, as well as their future expectations, both weakened this month. The Index of Current Conditions dipped 26 points to a reading of 94 and the Index of Future Expectations fell 21 points to a reading of 101. The Ag Economy Barometer is calculated each month from 400 U.S. agricultural producers’ responses to a telephone survey. This month’s survey was conducted between May 16-20.

Hybrid Transfer Production Date For BTIC+, TACO+ and NYMEX Energy Monthly-to-Daily Transformations – Effective August 29, 2022
CME Group
As previously mentioned in CH Advisory 22-149, CME Clearing will be making a small change, for BTIC+, TACO+, the NYMEX Energy Monthly-to-Daily Transformations Processes to use a slightly modified version of the Transfer message, being referred to as the “Hybrid Transfer”. Use of the Hybrid Transfer is planned for Production on August 29, 2022, and is currently available for testing in New Release.

Product Modification Summary: Expansion of Listing Schedule for all Cryptocurrency Futures and Monthly Options Contracts and Amendments to the Strike Price Listing Schedule for all Cryptocurrency Options Contracts – Effective June 27, 2022
CME Group
Expansion of Listing Schedule for all Cryptocurrency Futures and Monthly Options Contracts and Amendments to the Strike Price Listing Schedule for all Cryptocurrency Options Contracts

EEX Group Monthly Volumes – May 2022
EEX Group reports its May volumes with following highlights:
Power; Natural Gas; Environmentals; Freight and Agricultural Products.

Euronext announces the kick-off of Euronext Tech Leaders together with its partners, building on its long-lasting commitment to the Tech ecosystem
– Euronext and its partners today reveal the details of the Euronext Tech Leaders initiative
– Go-live of Euronext Tech Leaders segment, gathering more than 100 high-growth and leading Tech companies listed on Euronext
– New Euronext Tech Leaders index to track the segment
– Full suite of post-IPO services from Euronext and its partners to further strengthen Europe’s Tech sector through capital markets
– Pre-IPO services to prepare the next generation of Euronext Tech Leaders

Euronext announces volumes for May 2022
– Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo and Paris – 7 June 2022 – Euronext, the leading pan-European market infrastructure, today announced trading volumes for May 2022.
– Monthly and historical volume tables are available at this address:

Euronext Annual Conference 2022
Building stronger capital markets in Europe
The 10th edition of Euronext’s annual conference today successfully brought together nearly 400 participants and many speakers, representatives of listed companies, investors, private equity professionals, credit institutions, consultants, regulators and public authorities. All the personalities present shared their ambitions to build stronger capital markets in Europe, and affirmed their mobilization in favor of the financing of a greener and more integrated Europe at the heart of the Capital Markets Union. The Euronext annual conference is an unmissable event for the capital markets community, which has brought together French and European financial market professionals in Paris every year since 2011.

Euronext announces June 2022 quarterly review results of the AEX® Family
Euronext today announced the results of the quarterly review for the AEX®, AMX® and AScX®, which will take place after markets close on Friday 17 June 2022 and be effective from Monday 20 June 2022.

Euronext Tech Leaders, the European Tech community; Euronext Tech Leaders is Euronext’s initiative dedicated to highlighting the visibility and attractiveness of high-growth and leading Tech companies towards international investors, together with a suite of services to support them along their listing journey.
Euronext’s rich Tech ecosystem brings together 700+ Tech companies listed on Euronext markets with 660+ alumni of its pre-IPO programmes and a large international investor base financing all growth profiles of Tech companies. Euronext Tech Leaders is composed of 100+ high-growth and leading companies, each meeting a specific set of criteria to qualify. It complements Euronext’s existing Tech offer and aims to strengthen the European Tech sector and be a catalyst for the next generation of Tech leaders.

Bundled Liquidity Providing Incentive Program for Currency Derivative Products in 2022
Hong Kong Futures Exchange Limited (“the Exchange” or “HKFE”) is pleased to announce the renewal of the Bundled Liquidity Providing Incentive Program (“Bundled”) Program for Proprietary Traders (“PTs”) for Currency Derivatives Products for the six months period from 4 July 2022 (T session) until 30 December 2022 (T session) 1 and the extension of the exchange trading fee waiver for Mini USD/CNH Futures for the three months period from 4 July 2022 (T session) until 30 September 2022 (T session). With reference to the circular dated 3 December 2021 (Ref. No.: MKS/FIC/010/21) regarding the Incentive Programs for Currency Derivative Products in 2022, the existing appointments of PTs under the current Bundled Program will expire on 30 June 2022 (T session).

Change of Central Contract Month for TOPIX Futures Trading
Concerning TOPIX Futures, since the trading volume of the September 2022 contract (second contract month) surpassed that of the June 2022 contract (nearest contract month) in today’s auction market, the central contract month pertaining to temporary trading halt (Circuit Breaker rule) is as follows from June 9, 2022 (trading day).

Approval of Initial Listing (TOKYO PRO-BOND Market): List USD-Denominated Foreign Bond on TOKYO PRO-BOND Market with Value of USD 500 million (The Metropolis of Tokyo)
Today, Tokyo Stock Exchange approved a USD-denominated bond with a total value of USD 500 million (tenor: 3 years, coupon: 3.375%) from the Metropolis of Tokyo for listing on the professional-oriented TOKYO PRO-BOND Market.

JPX Monthly Headlines – May 2022
JPX group companies undertake various initiatives and disseminate information with the aim of providing the most attractive markets to all users.
Every month, we showcase the highlights of these efforts in short and concise summaries just for you.

Index Discontinuation of KOSPI Banks
KRX will cease to provide KOSPI Banks of KOSPI industry indices as follows.

LME CEO Defends Cancellation of Nickel Contracts
Shanny Basar – MarketsMedia
Matthew Chamberlain, chief executive of LME, defended cancelling trades in nickel contracts in March despite lawsuits being filed against the London metal exchange’s decision.
The LME CEO spoke to Walt Lukken, president and chief executive of FIA, at the IDX conference hosted by the trade organization for futures, options and centrally cleared derivatives in London on 7 June.
Chamberlain said: “We fully understand the impact that these incidents have had on a broad spectrum of participants. I wouldn’t be sitting here unless I can put my hand on my heart and say we believe that the decisions that we made are in the interest of the market.”

Hedge funds file complaint to LME over cancelled nickel trades
Philip Stafford – FT
The Managed Funds Association has made a formal complaint to the London Metal Exchange, alleging it failed to perform its regulatory functions when it cancelled thousands of nickel trades in March. The letter from the MFA, which represents many of the world’s biggest hedge funds, came three months after the LME provoked uproar among some users for cancelling eight hours’ worth of activity in its nickel market.

Decisions of the Annual Meeting of Shareholders of the Moscow Exchange
On June 6, 2022, the repeated Annual General Meeting of Shareholders (AGMS) of the Moscow Exchange was held in the form of absentee voting.

Nodal Exchange And IncubEx Collaborate To Launch First-Of-Their-Kind Environmental Futures & Options
Nodal Exchange and IncubEx announced today the planned launch of new environmental products including several first-of-their-kind futures contracts in renewable energy credits, renewable natural gas certificates (renewable thermal certificates) and voluntary carbon offsets. The new Nodal Exchange products further expand the world’s largest exchange listed suite of environmental products.

NYSE Group – Symbol Mapping Filename Changes – Reminder
As previously announced, NYSE has enhanced the Symbol Mapping filename to include the trade date. The enhanced Symbol Mapping files have been available in production since March 2022 to facilitate customer migration.

Speech by Loh Boon Chye, CEO, SGX Group at Securities Market Open for GFANZ
SGX Group
A very good morning to Her Excellency Kara Owen, British High Commissioner to Singapore;
Mr Ravi Menon, Managing Director, Monetary Authority of Singapore;
Dr Mark Carney, Co-Chair of Glasgow Financial Alliance for Net Zero, and UN Special Envoy for Climate Action and Finance; Partners of GFANZ and friends from the industry.

TMX Group Equity Financing Statistics – May 2022
TMX Group today announced its financing activity on Toronto Stock Exchange and TSX Venture Exchange for May 2022. TSX welcomed 11 new issuers in May 2022, compared with six in the previous month and 13 in May 2021. The new listings were eight exchange traded products, one life sciences company, one real estate company, and one oil & gas company. Total financings raised in May 2022 decreased 6% compared to the previous month, and were down 49% compared to May 2021. The total number of financings in May 2022 was 28, compared with 36 the previous month and 52 in May 2021.


Unprofitable Fintechs at Risk of Laying an Egg; Neobanks like Varo and Monzo overlook history’s expensive lessons at their peril.
Marc Rubinstein – Bloomberg
This week marks the 22nd anniversary of a celebrated initial public offering: Egg, the internet bank funded by Prudential Plc, came to market at a valuation north of $2 billion. Less than a decade later, it was gone. It’s easy to forget amid today’s fintech hype. But the stubbornly high customer acquisition costs coupled with marginally profitable operations that plagued Egg represent inescapable hurdles for the latest iteration of money-losing neobanks.

The best fintech jobs are at Goldman Sachs and JPMorgan
Sarah Butcher – eFinancialCareers
Now that many of the fintech darlings are brutally disavailing themselves of all the talented people they took in the past few years, people might well decide that the lure of the zeitgeist is less strong than the lure of a job that pays the mortgage and comes with a pension plan. After all, it’s not just Coinbase that’s getting cold feet: Gemini, Klarna, Paypal and Robinhood are chucking staff too. Forums like Blind are awash with people lamenting the end of the fintech boom: even if you get a job at a shiny new fintech firm, you probably won’t luck-out on the stock price.

Crypto threatens safety of payment schemes, Starling boss warns
Ryan Browne – CNBC
The boss of Goldman Sachs-backed digital bank Starling has doubled down on criticisms of crypto, calling digital currencies a threat to the safety of payment infrastructure.
“It is very dangerous,” Anne Boden, who founded Starling in 2014, warned Tuesday at the Money 20/20 fintech conference in Amsterdam. Based in Britain, Starling offers fee-free checking accounts and loans through an app. The firm was last privately valued at £2.5 billion ($3.1 billion) and counts the likes of Goldman and Fidelity as investors.

Apple is turning your iPhone into fintech service taking on PayPal, Affirm and more
Steve Kovach – CNBC
Apple is turning into a fintech company.
The company announced several new features for the iPhone’s Wallet app at its developers conference Monday that directly compete with products from other fintech companies such as Affirm and PayPal. The big one: a buy now, pay later service called Apple Pay Later. That announcement sent Affirm shares down more than 5% Monday, and they were down an additional 4% as of Tuesday morning.

The 10 Biggest Fintech Companies In America 2022
Isabel Contreras – Forbes
It’s turning into a sobering year for fintech. After a carnival of new unicorns and mega-funding rounds in 2021, private fintech companies are now scrambling to cut costs and stretch out the funds they have to avoid needing to raise additional money at a lower valuation (known as a “down round”). Their fear is well grounded.


Tech and Manufacturing Firms Launch Industrial Cybersecurity Group; Guidance and tools will focus on improving security in critical infrastructure and supply chains
Kim S. Nash – WSJ
Manufacturing and critical infrastructure organizations and security company Dragos Inc. on Tuesday will launch a group to provide cyber threat intelligence and protection tools for small and medium-size industrial companies, which are especially vulnerable to hackers. The Dragos Operational Technology Cyber Emergency Readiness Team will follow the model of other CERTs in offering free assessments, recommendations and other cybersecurity resources online, said Dawn Cappelli, director of the OT-CERT. Dragos specializes in threat intelligence and tools for operational technology providers. While many cybersecurity resources exist for information technology systems at small and medium-size companies, Ms. Cappelli said, few are available to provide deep knowledge of cyber risks facing operational tech, such as electrical substations, water treatment machines and factory-floor devices.

Former LADWP cybersecurity chief gets 4 years in prison
Dakota Smith – LA Times
A federal judge on Tuesday sentenced the former official in charge of cybersecurity at the Los Angeles Department of Water and Power to four years in prison for lying to federal authorities.

No More Excuses: Now Is The Time To Act On Cybersecurity
Sacha Labourey – Forbes
After being ranked the fifth highest risk in 2020, cyberattacks are becoming increasingly ubiquitous, and IoT cyberattacks are expected to double by 2025. But not everybody sees this—and I mean that quite literally. Because not all technology can be seen, its potential impacts often fly under the radar.

Here Are 10 Innovative Cybersecurity Startups To Watch In 2022
Jay Fitzgerald – CRN
And the winner is … Talon Cyber Security.
Tel Aviv, Israel-based Talon beat out nine other cybersecurity companies Monday to win the “Most Innovative Startup” award at the RSA Conference in San Francisco.

Jennifer Louis: ‘Build a Culture of Cybersecurity’ in Finance Teams
Bob Violino – CFO
Promoting knowledge of cyber risks and security across organizations is an enterprise-wide challenge for company leadership. CFOs and senior finance leaders are being called upon to help defend against attacks, especially since many of these attacks target financial information, according to Jennifer Louis, an expert instructor for Becker Professional Education and a training firm founder.

Fraud and Identity Theft Trial to Test American Anti-Hacking Law
A woman is accused of downloading data of more than 100 million Capital One customers. Her lawyers argue a conviction would criminalize legitimate research practices.
Kate Conger – NY Times
Nearly three years after the disclosure of one of the largest data breaches in the United States, the former Amazon employee accused of stealing customers’ personal information from Capital One is standing trial in a case that will test the power of American anti-hacking law.


Apifiny® Launches C++ Crypto Trading Library Adding Okcoin As First Official Partner – Apifiny® Algo Delivers Suite Of Highest Performance Modular Tools For Market Data Access, Order Execution And Strategy Implementation
Apifiny® (, the global cross-exchange digital asset trading network, today announced the launch of Apifiny® Algo, an advanced performance crypto trading library in C++ for High Frequency Trading (HFT) and latency sensitive traders. The trading library is being rolled out with global cryptocurrency exchange Okcoin as Apifiny’s flagship partner, with Okcoin clients receiving free subscriptions to the high performance quant trading modules Apifiny Algo offers.

BIS economists say crypto can’t fulfill the social role of money because of ‘fragmentation’
Camomile Shumba and CoinDesk – FORTUNE
The use of public blockchains results in fragmentation that means crypto could never be a suitable means of payment, economists from the Bank for International Settlements (BIS) said in a report on Tuesday. “Fragmentation means that crypto cannot fulfill the social role of money,” the report concluded. The report contended that as transactions per block get close to their limit, the cost of transactions rises, causing users to seek alternative blockchains. This “fragmentation” means blockchains cannot harness the beneficial network effects associated with traditional money.

Paxos co-founder Charles Cascarilla on crypto regulation
Charles Cascarilla, Paxos co-founder and CEO, joins ‘Squawk on the Street’ to discuss whether crypto should be reclassified as an asset class and how to regulate USD-backed stablecoins.

Japan Crypto Exchanges May Scrap System for Screening Tokens; Regulator would focus on policing assets once they are listed; Shift would be a boost for foreign newcomers like Coinbase
Takashi Nakamichi – Bloomberg
The body that governs Japan’s cryptocurrency exchanges is in talks to abolish strict rules for listing digital tokens after Prime Minister Fumio Kishida’s administration expressed discontent with the existing system. The Japan Virtual and Crypto assets Exchange Association, which oversees digital coin listings, has held discussions about letting local exchanges list cryptocurrencies without going through its screening process, according to people with knowledge of the matter.

SGX-Backed ADDX Allows Investors to Use Crypto to Gain Access; Private-market exchange ADDX to factor in digital assets; Bitcoin, Ether and USDC can count toward qualification
Joanna Ossinger – Bloomberg
Private-market exchange ADDX will now recognize some cryptocurrency holdings from investors seeking to gain access to its platform, amid what it sees as record levels of crypto ownership around the world.

PayPal Mounts Crypto Offensive After New York Grants a Full License; Users can transfer select coins with other wallets, exchanges; Sees long-term adoption of crypto in payments despite downturn
Jennifer Surane and Yueqi Yang – Bloomberg
PayPal Holdings Inc. will let users transfer certain cryptocurrencies to other customers, exchanges and external wallets, a new service that’s part of the company’s effort to boost usage of its app.


Testimony Of US Secretary Of The Treasury Janet L. Yellen Before The Committee On Finance, U.S. Senate; As Prepared for Delivery
U.S. Department of the Treasury
Chairman Wyden, Ranking Member Crapo, thank you for inviting me to discuss the Administration’s budget proposals. This budget prioritizes essential investments in education, medical care, and affordable housing, alongside tax reforms that enable deficit reduction and prioritize a fairer tax system. Over the past year and a half, we have experienced a robust recovery characterized by strong economic growth, historically low unemployment, and high household savings rates. This rapid, broad-based recovery has been buttressed by the Congressional response to the challenges of the pandemic – beginning with the CARES Act at the beginning of the pandemic, and continuing with the Consolidated Appropriations Act in late 2020, and the American Rescue Plan legislated at the beginning of 2021. As President Biden said last week, we now are entering a period of transition from one of historic recovery to one that can be marked by stable and steady growth. Making this shift is a central piece of the president’s plan to get inflation under control without sacrificing the economic gains we’ve made…

UK Markets Are Full of Risk for Traders Glued to Political Drama; The pound and FTSE 100 were steady after the confidence vote; Traders say the leadership turmoil will depress sentiment
Libby Cherry and Kat Van Hoof – Bloomberg
The political infighting at Westminster is reinforcing the views among traders who say UK markets are still brimming with risk. UK markets were stable on Tuesday, with the pound slipping to $1.2514 and the FTSE 100 Index holding firm, after Prime Minister Boris Johnson won the confidence vote from Conservative MPs. However, the deep divisions in the party show investors that on top of searing inflation, recession worries and higher interest rates, the UK’s top leadership lacks support. “Political turmoil is always bound to leave a mark on UK investor confidence, but the full extent of any market moves will depend on how quickly the saga is truly put to bed,” said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown. “There’s still plenty of uncertainty looming about the stability of the current government, and until those jitters have gone, the market will struggle to find its place.”


Cecilia Skingsley Will Join The BIS On 14 September.
Cecilia Skingsley, First Deputy Governor of Sveriges Riksbank, appointed to head the BIS Innovation Hub. Ms Skingsley will lead the Innovation Hub in its mission to foster international collaboration among central banks on innovative financial technology. She will spearhead the Innovation Hub’s efforts to build technological solutions to problems in the financial sector in such areas as central bank digital currencies, cyber security and green finance.

SEC Charges New Jersey Software Company and Senior Employees with Accounting-Related Misconduct; Synchronoss Technologies to Pay $12.5 Million to Settle Charges, Former CEO to Reimburse Company
The Securities and Exchange Commission today charged Bridgewater, NJ-based Synchronoss Technologies, Inc. and seven senior employees, including the former CFO, in connection with their roles related to long-running accounting improprieties that ran from 2013 to 2017. In addition, the company’s founder and former CEO, Stephen Waldis, while not charged with misconduct, agreed to reimburse the company for more than $1.3 million in stock sale profits and bonuses as well as to return previously granted shares of company stock pursuant to Section 304 of the Sarbanes-Oxley Act (SOX).

Investing and Trading

EY explores IPO or partial sale of global advisory business; Big Four firm hires JPMorgan and Goldman to look at break-up, raising prospect of potential windfall for partners
Michael O’Dwyer and Arash Massoudi – FT
EY is exploring a public listing or partial sale of its global advisory business as part of the most radical transformation of a Big Four accountancy firm in two decades, according to people with direct knowledge of the matter. A stake sale or listing would raise the prospect of a massive windfall for EY’s existing partners who own and run the firm, reminiscent of the IPOs of Goldman Sachs in 1999 and Accenture in 2001. The 312,000-strong firm, which along with Deloitte, KPMG and PwC dominates the accounting industry, is considering a historic break-up of its business as a solution to the conflicts of interest that have dogged the profession and attracted regulatory scrutiny.

Farmer sentiment plummets as production costs skyrocket
CME Group
The Purdue University/CME Group Ag Economy Barometer dropped to its lowest level since April 2020, down 22 points in May to a reading of 99. Agricultural producers’ perceptions regarding current conditions on their farms, as well as their future expectations, both weakened this month. The Index of Current Conditions dipped 26 points to a reading of 94 and the Index of Future Expectations fell 21 points to a reading of 101. The Ag Economy Barometer is calculated each month from 400 U.S. agricultural producers’ responses to a telephone survey. This month’s survey was conducted between May 16-20.

Yellen says inflation to stay high, Biden likely to up forecast
David Lawder and Andrea Shalal – Reuters
U.S. Treasury Secretary Janet Yellen told senators on Tuesday that she expected inflation to remain high and the Biden administration would likely increase the 4.7% inflation forecast for this year in its budget proposal. During a Senate Finance Committee hearing, Yellen said that the United States was dealing with “unacceptable levels of inflation,” but that she hoped price hikes would soon begin to subside. U.S. Consumer Price Index inflation has been tracking above 8% in recent months, the highest readings in over 40 years and well above President Joe Biden’s administration’s forecast for its fiscal 2023 budget.

Environmental, Social and Corporate Governance

Europe at risk of winter energy rationing, energy watchdog warns; IEA chief Fatih Birol says improving efficiency is vital to curb gas demand as Ukraine crisis continues
Camilla Hodgson – FT
Europe is at risk of energy rationing this winter, particularly if cold weather coincides with resurgent economic demand in China, the head of the world’s watchdog for the sector has warned.

Shell, the Oil Giant, Will Sell Renewable Energy to Texans; The European oil company has been expanding into green energy even as many U.S. energy giants have kept their focus on fossil fuels.
Clifford Krauss and Ivan Penn – NY Times
Shell said on Tuesday that it would begin selling electricity generated from renewable sources to residents and businesses in Texas, a move that brings the European oil company’s shift to green energy to the U.S. market. The announcement underscores a widening gulf between the strategies of European and U.S. oil companies as elected leaders and consumers demand that the energy industry do more to tackle climate change. European businesses including Shell, BP and TotalEnergies are seeking to expand into renewable energy, electric vehicle charging and other fast-growing businesses as U.S. companies like Exxon Mobil and Chevron mostly keep their focus on oil and gas while investing in capturing carbon from industrial plants and biofuels.

The holes in holistic ESG indices; Choices over inclusion in benchmarks of goodness are dubious in nature
Roger Lowenstein – FT
Suppose you had to balance each of your acquaintances’ pros and cons — were they generous, quick to anger, patient with children? — and choose the “best”. The idea is off-putting, and the thought of assigning individuals a “score” encompassing their every character trait is extremely off-putting.

Blowing the whistle on ESG
FT Podcast
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 for privacy and opt-out information.


Credit Suisse issues third profit warning this year; Swiss lender predicts second-quarter loss as investment bank hit by market volatility and war in Ukraine
Owen Walker and William Langley – FT
Credit Suisse has issued its third profit warning of the year and will accelerate cost-cutting measures, as market volatility pushes back the prospect of a recovery for a bank beset by crises in recent years.

Credit Suisse pushed for spyware sales at NSO despite US blacklisting; Swiss bank among creditors that pressed Israeli maker of Pegasus hacking tool to solve ‘liquidity crisis’
Kaye Wiggins and Ortenca Aliaj and Mehul Srivastava – FT
Credit Suisse pushed for NSO Group to keep selling its Pegasus spyware to new customers just weeks after the US blacklisted the Israeli cyberweapon manufacturer, saying authoritarian regimes had used its hacking tool to silence dissent. The request was made in a December letter by lawyers representing the Swiss bank and some of its fellow NSO creditors including the hedge fund Senator, as well as the US investment bank Jefferies in its capacity as the overseer of a loan to NSO.

There will be blood; Deutsche Bank predicts that the US corporate default rate will spike to 10 per cent
Robin Wigglesworth and George Steer – FT
When he is not regaling us with daily tales of shrubbery thefts, a medley of injuries, golf and some markets, Jim Reid writes Deutsche Bank’s annual Default Study. The 24th one just landed in FT Alphaville’s inbox, and, as ever, it makes for interesting reading. First of all, it is remarkable just how tranquil a period it has been for corporate debt. Last year saw one of the lowest junk bond default counts in a decade, and despite the recent market jitters, only 31 companies have defaulted globally this year, the lowest run rate since 2014 according to S&P Global. Even the rolling default rate of uber-junky triple-C rated US companies is the lowest it’s been for nearly four decades, according to Deutsche Bank.

Billionaires plough more money into private equity; Family offices boost exposure to unlisted shares despite policy tightening and concerns over valuations
Joshua Oliver – FT
Billionaire investors are increasing their exposure to private equity in spite of concerns that the end of loose monetary policy will hurt weaker firms in the sector. Family offices managing vast fortunes for wealthy individuals have increased their allocation to private equity from about 15 per cent in 2019 to a fifth last year — the largest gain for any asset class. Many plan to keep putting more money into private companies over the next five years, according to a report by Swiss bank UBS.

Credit Suisse Weighs New Round of Job Cuts After Loss Warning; Swiss lender considers dismissals across key business units; Bank warned of another loss at group level, investment bank
Cathy Chan, Ambereen Choudhury, and Myriam Balezou – Bloomberg
Credit Suisse Group AG is weighing a fresh round of job cuts, part of a renewed push to slash costs after warning of a second-quarter loss, according to people familiar with the matter.

Hedge Fund D1 Borrowed Billions for Hot Bet Now Seen Melting Down; The firm levered up stakes in private companies and posted massive gains. But as valuations fade, such bullishness is veering into losses across the industry.
Hema Parmar and Miles Weiss – Bloomberg
Hedge funds were tallying gains on their hottest bet in years when Dan Sundheim reached an unusual deal with JPMorgan Chase & Co. to go even further. With the bank’s help in August 2020, Sundheim’s D1 Capital Partners used its stakes in private companies as collateral for borrowing $2 billion that the firm could put toward yet more of those stakes, among other things. Last year that focus on private companies looked brilliant, as D1 updated its valuations and posted a whopping 70% gain in that part of its portfolio.

Citi’s junior traders are also whinging about their salaries
Sarah Butcher – efinancialcareers
If banks had thought that 2022 would bring an abatement of the pressure on junior salaries following last year’s increases, they will already be disappointed. 2022 is turning out to be as inflationary as 2021: just ask Credit Suisse, which has followed Wells Fargo in hiking junior banker salaries a second time to the new baseline of $110k in year one.

Wellness Exchange

Novavax’s Covid-19 Vaccine Backed by FDA Advisers; Vaccine advisory committee finds in an overwhelming vote that vaccine’s benefits outweigh risks
Liz Essley Whyte – WSJ
Vaccine experts advising the Food and Drug Administration endorsed Novavax Inc.’s Covid-19 vaccine, voting overwhelmingly that the shot’s benefits outweighed its risks. The outside panel’s 21-0 vote, with one abstention, on Tuesday moves the shot one step closer to becoming available in the U.S. The FDA must next make a decision on authorizing the vaccine, after months of manufacturing-related delays and an agency review that found the shots effective but raised a safety concern.


EU faces legal challenge over plan to fast-track gas projects; NGOs argue priority list was drawn up without consideration of methane emissions
Daniel Boffey – The Guardian
An EU plan to fast-track funding and permits for 30 gas projects is facing a legal challenge from NGOs including ClientEarth and Friends of the Earth Europe. The European Commission has been asked to review its backing for infrastructure projects such as the EastMed pipeline, a 1,180-mile (1,900km) gas pipeline to connect offshore gas fields in Israel and Cyprus to Italy. The EU’s executive branch has up to 22 weeks to revise its initial decision or show that it does not violate environmental law, under a new way of challenging Brussels introduced last year.

Recession? Stagflation? British Businesses Wade Through Dire Warnings.
Higher prices plus a labor shortfall plus a national economic contraction make it hard to plan for the future.
Eshe Nelson – NY Times
In the struggle against soaring prices, Sean Hughes has been willing to try anything to keep costs down at his gastropub, Dylans at The Kings Arms. That includes adding some less traditional fare among favorites like prime rib and Scotch eggs. The latest: confit beef tongue.

We visit more than 100 financial news websites daily (Would YOU do that?)

The Spread

Past JLN Newsletters

Crypto: ‘Blockchain is hype’ – MPs warned

Crypto: ‘Blockchain is hype’ – MPs warned

First Read Hits & Takes John Lothian & JLN Staff Today we have two videos from my coverage of FIA's IDX in London, which I conducted in the Eurex branded lounge area outside The Brewery's doors. The first is with FIA Europe Head Bruce Savage, whom I literally...

Pin It on Pinterest

Share This Story