| September 25, 2024 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | The Wall Street Journal is reporting that the U.S. Department of Justice (DOJ) has updated its guidance on evaluating corporate compliance programs, emphasizing the importance of managing risks associated with emerging technologies, particularly artificial intelligence (AI). Compliance officers are now expected to assess AI's impact on their company's ability to adhere to criminal laws and ensure proper governance in its use.
The revised guidelines also stress the use of internal data and lessons from past misconduct to strengthen compliance efforts. Companies with robust, adaptive compliance programs could receive more lenient treatment during investigations.
Additionally, the DOJ has enhanced its focus on whistleblower protections, encouraging companies to foster a culture where employees feel safe reporting misconduct. This aligns with a new DOJ trial program offering monetary rewards to whistleblowers. The guidance prompts prosecutors to evaluate how companies handle whistleblowers and whether they promote a "speak-up" culture. ~JJL
| | | | | | Lead Stories | | | SEC Hits Pause on Ethereum ETF Options Following Bitcoin Nod; While the SEC ponders its decision on Ethereum options, the ETH ETF market on Monday saw its largest net outflows since July.
Vismaya V - Decrypt
The U.S. Securities and Exchange Commission has postponed its decision on a proposed rule change by Nasdaq's International Securities Exchange to allow the listing and trading of options on BlackRock's iShares Ethereum Trust (ETHA). Initially expected by Sept. 26, the decision has now been delayed until Nov. 10, giving the SEC additional time to evaluate the proposal's potential impact on market stability.
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Bitcoin's $5.8B Quarterly Options Expiry May Spark Market Swings, Deribit Says
CoinDesk via Markets Insider
The bitcoin {{BTC}} market may get busy in the next two days as options contracts worth several billion dollars are due to expire Friday at 08:00 UTC, cryptocurrency exchange Deribit told CoinDesk in a message Wednesday.
As of writing, 90,000 BTC options contracts worth $5.8 billion were due for settlement alongside $1.9 billion in ether options. One Deribit one options contract represents one BTC or one ETH. Deribit is the world's leading cryptocurrency options exchange, accounting for over 85% of the global activity.
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Options Bets on Pound Surge as Yen Loses Appeal for Traders; Pound has been rising after BOE said in no hurry to cut rates; EUR/GBP options trading volumes have surged in recent days
David Finnerty - Bloomberg
Currency traders are shifting focus to sterling as the dollar and the yen lose their luster.
Options trading volumes for the pound versus the euro on the Depository Trust and Clearing Corporation surged on Monday to around 300% above the five-day average, and beat the average again on Tuesday, data compiled by Bloomberg shows.
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Weather Derivatives Grow as Risks Intensify; The rise in atypical weather events like heat waves and tropical storms is driving demand for climate-based derivatives.
Ivan Castano for CME Group - The Wall Street Journal
Climate change is becoming a major concern for businesses around the world. At the same time, futures and options tied to managing risk around rising temperatures and extreme weather are seeing a boost in interest.
Last year, for instance, CME Group saw average trading volumes for its weather derivatives suite surge over 260% compared to 2022, while the number of outstanding contracts was up 48% year-on-year as of May.
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BNY Plans Crypto ETF Custody as Wall St Eyes Digital Revenue
Olga Kharif and Lydia Beyoud - Bloomberg News
Bank of New York Mellon Corp. is moving closer to rolling out custody services for the Bitcoin and Ether held by exchange-traded product clients after a review enabled the company to avoid treating the assets as a balance-sheet liability. The review, conducted earlier this year by the Office of the Chief Accountant at the Securities and Exchange Commission, didn't object to BNY's determination that the safeguarding of cryptoassets for its regulated exchange-traded product clients shouldn't be recognized on BNY's balance sheet, the bank said in a statement to Bloomberg News on Tuesday.
/jlne.ws/4edi5of
The $6.3 Trillion Money-Market Industry Just Got Its First ETF; Texas Capital Bank debuts new ETF which trades as 'MMKT'; ETF will comply with rules governing money-market funds
Katie Greifeld and Emily Graffeo - Bloomberg
A new exchange-traded fund attempting to carve out a slice of the $6.3 trillion sitting in traditional money-market funds is launching Wednesday. The Texas Capital Government Money Market ETF begins trading under the ticker MMKT, according to a press release. While other short-dated bond ETFs exist, MMKT is the first to follow the so-called Rule 2a-7 - a provision of a 1940s Securities and Exchange Commission law that governs money-market funds.
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| | | | | | Exchanges | | | Connecting Blocks with Cboe BIDS Canada
Cboe
Cboe BIDS has grown considerably as a venue to source unique block liquidity, especially in recent years as the platform became available in new regions worldwide. As a platform that allows the anonymous trading of large blocks of equities, Cboe BIDS' unique sponsoring broker model provides for interactions with the buyside directly and helps reduce market fragmentation. In recent years, Cboe BIDS has grown its presence in Europe and has become available in Canada, Australia, and Japan.
/jlne.ws/4exezW5
Ediphy-led consortium enters the race for UK consolidated tape provider; In addition, Ediphy has confirmed its intention to bid for the European tape as well.
Claudia Preece - The Trade
A new group, named fairCT, consisting of Google Cloud, UBS, TP ICAP, Cboe Global Markets, FactSet, and Norges Bank Investment Management, co-ordinated by Ediphy, has entered the tender process to become the UK's consolidated tape provider for fixed income. The CTP will focus on enhancing transparency, liquidity and participation in UK fixed income markets, set to operate as an industry utility, built with an 'at reasonable cost' philosophy.âEUR¯
/jlne.ws/4gF58VW
Nasdaq Announces Mid-Month Open Short Interest Positions in Nasdaq Stocks as of Settlement Date September 13, 2024
Nasdaq
At the end of the settlement date of September 13, 2024, short interest in 3,057 Nasdaq Global MarketSM securities totaled 12,241,625,467 shares compared with 12,296,040,928 shares in 3,037 Global Market issues reported for the prior settlement date of August 30, 2024. The mid-September short interest represents 3.06 days compared with 3.38 days for the prior reporting period. Short interest in 1,670 securities on The Nasdaq Capital Market totaled 2,107,947,669 shares at the end of the settlement date of September 13, 2024, compared with 2,103,446,709 shares in 1,668 securities for the previous reporting period. This represents a 1.34 day average daily volume; the previous reporting period's figure was 1.27.
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| | | | | | Regulation & Enforcement | | | The SEC needs to take action over penny stock listings; The number of low-price, highly speculative stocks on exchanges has exploded, harming investors
John Ramsay - Financial Times
To function effectively, the stock market depends on trust. As one part of that principle, investors trust that exchanges will set, maintain and enforce reasonable listing standards.
But this trust has been undermined over the past few years, as the number of low-price, highly speculative stocks that have remained listed on exchanges has exploded. This trend hurts investors, shakes investor confidence and undermines the credibility of our markets. The Securities and Exchange Commission can and should take action to reverse it.
/jlne.ws/3Bg3ZDX
SEC Issues $88 Million Fine Against 12 Firms for Record-Keeping Failures; The regulator also highlighted factors that led to one firm receiving no civil penalty
Mengqi Sun and Denny Jacob - The Wall Street Journal
The Securities and Exchange Commission said it charged 12 firms with widespread and longstanding failures to maintain and preserve electronic communications that violated record-keeping provisions as required by federal securities laws.
The regulator said the firms admitted to the facts laid out in their respective orders and agreed to pay combined civil penalties of about $88.3 million.
/jlne.ws/3TFVvfy
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| | | | John Lothian News (JLN) is the news division of John J. Lothian & Company, Inc. (JJLCO). The online media and financial services firm is staffed by derivatives industry, journalism and technology professionals. | | | | | | | John Lothian News Editorial Staff: | | | John Lothian
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| | | Jeff Bergstrom
Editor
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