| January 12, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | The Stock Market Is Heating Up. Read This Before You Jump In.
Steven M. Sears - Barron's
Are we data dependentâor data delusional?
Right now, the stability of the stock market boils down to how investors view recent economic data suggesting that inflationary pressures might be easing.
If you believe the data, the market's recent gains are legitimate. The Federal Reserve might raise rates less aggressively, which would help secure those gains and perhaps even create a meaningful foundation for a recovery rally.
/jlne.ws/3ZqVvlb
Watchdog Slams Some London Brokers as Unfit for Volatile Markets
Leonard Kehnscherper - Bloomberg
Britain's markets watchdog has warned of potential "systemic defaults" among wholesale brokers in the City of London that may be unfit to weather sudden shocks and longer periods of stress.
"Firms continue to underestimate their exposure to intraday liquidity risks arising from their own business as well as from key clients and counterparties," Simon Walls, director of wholesale sell-side at the Financial Conduct Authority, wrote to company bosses on Wednesday.
/jlne.ws/3Qx0JaZ
US Inflation Is Slowing Down Even Faster Than You Think
Madison Hoff and Ayelet Sheffey - Business Insider
While Americans have been facing higher prices for things like rent and shelter from the same time a year ago, overall US inflation is quickly cooling based on data from the most recent months.
Prices are pretty much back to where they were in September, based on non-seasonally-adjusted data.
/jlne.ws/3w0v6Ni
Wall St gains; data suggests inflation may be on downward trend
Caroline Valetkevitch - Reuters
U.S. stocks were higher in late afternoon trading Thursday as data showing a fall in consumer prices in December bolstered expectations of less aggressive interest rate hikes.
The Labor Department's report showed U.S. consumer prices grew 6.5% on an annual basis in December, in line with expectations. While it was the smallest rise since October 2021 and followed a 7.1% advance in November, the headline inflation number remains above the Federal Reserve's 2% target.
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| | | | | | Exchanges | | | Built In Honors OCC in 2023 Best Places to Work Awards
OCC
On Wednesday, January 11, Built In honored The Options Clearing Corporation (OCC) in its Best Places to Work Awards for the second consecutive year. The annual awards program includes companies of all sizes, from startups to enterprises, across the U.S. OCC was recognized on the following lists:
Chicago Best Midsize Places to Work
Dallas Best Places to Work
Dallas Best Midsize Places to Work
Washington DC Best Places to Work
Washington DC Best Midsize Places to Work
/jlne.ws/3kebPWg
How Cboe North American Equities Evolved with the Changing Landscape in 2022
Cboe
2022 was a busy and exciting year for Cboe's North American Equities team. This year Cboe Global Markets completed the acquisition of NEO, strengthening our global equities and listing offering. As we brought NEO under the Cboe umbrella, we continued to integrate MATCHNow and BIDS Trading in Canada, offering new solutions to improve your trading experience and level the playing field.
Speaking of leveling the playing field, throughout the year, we collaborated with Cboe's Market Policy and Government Affairs team to develop a thorough tick-reduction framework proposal. The main goal of our proposed framework was to ensure market structure benefits all investors. As we shared in the proposal, we believe it is incredibly important that any reforms made by the Securities Exchange Commission (SEC) are measured, evidence-based and truly beneficial to all investors.
/jlne.ws/3W97vEK
World Federation of Exchanges to Convene the Global Meeting of Exchange & Clearing Leaders in Bermuda in 2023
The World Federation of Exchanges
The World Federation of Exchanges (WFE), the global industry group for exchanges and CCPs, is pleased to announce The Bermuda Stock Exchange (BSX) will host the industry's General Assembly & Annual Meeting in 2023.
The meeting, now in its 62nd year, gathers the leaders of exchanges and central counterparties around the world to think, engage, listen and speak to stakeholders. It is by invitation-only and the largest and most important gathering of market infrastructure leaders.
/jlne.ws/3QHI3p2
| | | | | | Regulation & Enforcement | | | EU frets over crypto rules after FTX blow-up
Scott Chipolina and Laura Noonan - Financial Times
The collapse of Bahamas-based crypto exchange FTX has sparked fresh debate in Europe about whether the bloc's digital asset regulations are up to the job of protecting the public against similar calamities.
FTX's spectacular implosion in November further destabilised a market that had already been left reeling after an unprecedented collapse in the summer. Several once-prominent firms went bankrupt after a 70 per cent drop in crypto token prices, injecting urgency into global policymakers' efforts to tame an industry widely described as the "wild west" of finance.
/jlne.ws/3QB1wY9
Lawyers Expect More Anti-Money-Laundering Whistleblowers Thanks to Legislation
Mengqi Sun - WSJ
The Treasury Department's anti-money-laundering whistleblower program, which was established in 2021 but has been viewed as lacking teeth, got a shakeup in the recent omnibus spending bill that lawyers predict will result in more whistleblower cases.
The legislation, which President Biden signed into law in late December, contains major changes to the Treasury program, including setting a minimum potential award of 10% of monetary penalties in any enforcement action taken. The 2021 defense bill establishing the program laid out a maximum 30% cut for the whistleblower but listed no minimum.
/jlne.ws/3XpxhWr
| | | | | | Strategy | | | How to Improve Risk/Reward Profiles by Aligning Options Strategies to Portfolio Rebalancing Rules
Joe Cusick - Cboe
The goal of rebalancing a portfolio is to drive excess returns with lower risk. Savvy retail investors, high net worth participants, professional advisors and large institutions, such as pensions, endowments and foundations, have long implemented rebalancing strategies using options. Many investors are unfamiliar with this approach but quickly learn how simple it can be to implement an options strategy within their current risk management structure.
/jlne.ws/3XpxKb9
Don't Buy Stocks yet but Watch for the Fed to Pause Hikes Soon: JPMorgan
George Glover - Markets Insider
Investors shouldn't be buying US stocks yet - but they should be on high alert for when the Federal Reserve wraps up its interest rate-hiking campaign, according to a strategist at JPMorgan Asset Management.
Portfolio manager Phil Camporeale expects the US central bank to stop the monetary tightening soon, given inflation is cooling towards the 2% target it wants to reach. The economy is at risk of slipping into a recession, if the Fed presses ahead with outsized rate hikes much longer.
/jlne.ws/3X7Po3y
| | | | | | Miscellaneous | | | Goldman Sachs makes 'brutal' job cuts in quest for lower costs
Joshua Franklin and Ortenca Aliaj in New York, Stephen Morris - Financial Times
Goldman Sachs on Wednesday sacked bankers at its offices in cities from New York and London to Hong Kong, dismissing many employees without paying a bonus for work performed last year while giving some junior bankers 30 minutes to gather their belongings and leave.
The layoffs are the most concrete example of a deep cost-cutting drive at the Wall Street bank, as chief executive David Solomon tries to reduce expenses following several years of expansion and a slowdown in its investment banking business.
/jlne.ws/3H1V2yF
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Publisher | | | Sarah Rudolph
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| | | Jeff Bergstrom
Editor
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