| December 06, 2023 | "Irreverent, but never irrelevant" | | | | John Lothian
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John Lothian News | |
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Hits & Takes
John Lothian & JLN Staff
Do you want to make some extra money for the holidays, use your trading skills and not take any risk while trading in a market that's making a breakout? The CME has your answer.
The CME Group is hosting the Crypto Classic Futures Trading and Options Challenge from December 11 to December 15, 2023. Traders can enter this risk-free competition to test their skills in Bitcoin and Ether futures and options trading. Participants start with a virtual account of $100,000 and aim to maximize their balance. The challenge is open to traders of all levels, offering exclusive educational resources and cash prizes. Register through the CME Group website and complete required courses by December 15, 2023, for eligibility. It's a valuable opportunity to gain experience in cryptocurrency trading within a controlled environment.
Among the records set in Cboe Global Markets' November volume report are: trading in S&P 500 Index (SPX) options set a new single-day volume record on November 14, 2023 with 4.4 million contracts traded and in global FX trading, the Cboe SEF (Swap Execution Facility) reported a monthly ADV record of $1.36 billion.
ICAP, a subsidiary of TP ICAP Group, declared December 7 the date for its 31st annual worldwide Charity Day. ICAP Charity Day is an annual event, with a mission to support charitable causes on a global scale. On this special day, ICAP commits to donating 100% of its revenues and the commissions earned by its brokers to various charitable organizations. In the previous year, over 100 diverse charitable entities worldwide were beneficiaries of this generous initiative.
TMX Group Limited was selected as one of Greater Toronto's Top Employers (2024)
The latest FCM financial data reports are out from the CFTC, with October 2023 being reported.
I will be in downtown Chicago today for some holiday parties and lunch with an industry colleague.
When Robby Lothian (USA) was in Singapore, he shot some news interviews at the conference as we always do. But he also shot some for The Open Outcry Traders History Project with former Singaporean floor traders. He also shot an interview with SGX Managing Director Rama Pillai about his illustrious career. We will start publishing the news interviews soon.
JLN continues to be interested in shooting interviews with former floor traders and brokers, people who participated in open outcry trading, from any market in the world. If you would like to participate in The Open Outcry Traders History Project, or know of someone who you think should, please let me know.
I recently learned of the death of former CBOT member David Keefe, who passed away on November 23. I had been in touch with his family about doing an interview with Mr. Keefe, but he was slipping into age-related memory issues and we were never able to complete the interview before he passed. I hope not to repeat this with other interview subjects.
Some of the great stories are slipping away. Reach out today to me at [email protected]
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
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Our most read stories from our previous edition of JLN Options were:
- Why the VIX Keeps Investors on Edge from The Wall Street Journal.
- Gamma Scalping: A Primer from TD Ameritrade: The Ticker Tape.
- Stock-hungry volatility funds, 'gamma-heavy' options dealers could buoy US equities from Reuters. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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The world cannot hedge against Donald Trump; Everything will change for European and Asian democracies if a man bent on dictatorship re-enters the White House
Edward Luce - Financial Times
You can get insurance for almost anything nowadays. It is next to impossible, however, to insure against Donald Trump's return to the White House. The time for America's allies to hedge against Trump 2.0 is today. A year from now, when Trump could be president-elect, would be far more expensive. Unfortunately, there are no easy or foolproof ways of doing that.
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****** No one wants to sell volatility on December 2024 Chaos Futures.~JJL
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A reality check on those Hamas insider trading claims; "Fact-checking anything is basically pointless" - Oscar Wilde
Alexandra Scaggs and Louis Ashworth - Financial Times
Markets reporters have a private running joke about how it's mostly impossible to know what moves stocks, or what might motivate a particular trade. Sometimes the catalyst looks obvious, like better- or worse-than-expected payrolls data or a surprising earnings report from a bellwether company. But most of the time, market reporting is an XKCD/904-style crapshoot. This is why stocks move "after", "amid", and sometimes even "in spite of" various news items, but rarely "because of" them. Markets contain multitudes.
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****** The professors whose work the story was based on had their decimal point in the wrong place. Oops!~JJL
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Oil CEO says blaming the energy industry for the climate crisis 'like blaming farmers for obesity'
Sam Meredith - CNBC
The chief executive of UAE-based energy firm Crescent Petroleum on Tuesday claimed that blaming the oil and gas industry for the climate crisis "is like blaming farmers for obesity."
His comments come at the mid-point of the U.N.'s biggest and most important annual climate conference, with many at the COP28 talks in Dubai calling for heads of state from nearly 200 countries to agree to a fossil fuel phase out.
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****** How about we not focus on blame, but on solutions?~JJL
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Tuesday's Top Three
Our top story Tuesday was Bloomberg's How Suspects Laundered Billions in Singapore for Years. Second was John Pietrzak: Open Outcry Traders History Project Podcast Interview, from John Lothian News. Third was Carbon-Credit Derivatives Get More Scrutiny From US Regulator, also from Bloomberg.
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| Lead Stories | How Nations Are Losing a Global Race to Tackle A.I.'s Harms; Alarmed by the power of artificial intelligence, Europe, the United States and others are trying to respond - but the technology is evolving more rapidly than their policies.
Adam Satariano and Cecilia Kang - The New York Times
When European Union leaders introduced a 125-page draft law to regulate artificial intelligence in April 2021, they hailed it as a global model for handling the technology. E.U. lawmakers had gotten input from thousands of experts for three years about A.I., when the topic was not even on the table in other countries. The result was a "landmark" policy that was "future proof," declared Margrethe Vestager, the head of digital policy for the 27-nation bloc. Then came ChatGPT.
/jlne.ws/3NjEjtd
SEC Head Warns Against 'AI Washing,' the High-Tech Version of 'Greenwashing'; Agency head Gary Gensler cautioned businesses against peddling phony AI-related hype
Richard Vanderford - The Wall Street Journal
Securities and Exchange Commission Chair Gary Gensler has warned businesses against "AI washing," or making false artificial intelligence-related claims, likening it to the greenwashing phenomenon that has been the target of an agency crackdown. Gensler said Tuesday that securities laws bar phony claims and require companies to give "full, fair and truthful" disclosures. "Don't do it," Gensler said at a conference hosted by The Messenger, a news outlet. "One shouldn't greenwash and one shouldn't AI wash."
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Binance's $4.3bn fine was set high as a warning, says US regulator; CFTC commissioner says crypto groups should 'take the hint' after penalty designed to bring 'order and structure'
Scott Chipolina, Nikou Asgari and Philip Stafford - Financial Times
A top US financial regulator has said the $4.3bn penalty levied on Binance by authorities last month was set at a high level to act as a deterrent to other groups, after the world's largest cryptocurrency exchange "simply failed to comply with regulation". Kristin Johnson, commissioner at the US Commodity Futures Trading Commission, said on Tuesday that the heavy penalty was part of the "guardrails" for the crypto industry, and hoped it would bring "order and structure".
/jlne.ws/3R4tkVE
BlackRock to roll out first generative AI tools to clients next month; World's largest money manager aims to gain an edge over rivals in race to harness emerging technology
Brooke Masters - Financial Times
BlackRock plans to roll out generative artificial intelligence tools to clients in January as part of a larger drive to use the technology to boost productivity, the $9.1tn asset manager told employees on Wednesday. The world's largest money manager said in a memo to staff that it has used generative AI to construct a "co-pilot" for its Aladdin and eFront risk management systems. Clients will be able to use BlackRock's large language model technology to help them extract information from Aladdin.
/jlne.ws/3TewvwQ
Citadel Securities' Credit-Trading Business Seen Threatening Banks' Turf
Katherine Doherty - Bloomberg
Wall Street banks bracing for more regulation are facing an increasing threat from electronic market-making firms able to capitalize on their pullback in fixed-income trading, Tradeweb Markets Inc.'s chief executive officer said. "From my perspective, you're going to have more of the Citadel Securities of the world and ecosystem entering into these markets," Billy Hult said Tuesday at the Goldman Sachs US Financial Services Conference.
/jlne.ws/3uOTG6D
Europe Faces Coffee Shortage as Deforestation Rules Lack Clarity
Mai Ngoc Chau - Bloomberg
The European Union is facing the prospect of a coffee shortage in 2025 as the market grapples with a lack of clarity around the implementation of deforestation regulations, according to the International Coffee Organization. The EU agreed late last year to set mandatory rules for companies selling a raft of commodities including coffee, palm oil and cocoa to ensure products do not come from deforested land. However, ICO Executive Director Vanúsia Nogueira says there are still "many doubts and questions without answers yet."
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BOE Rings Alarm Bells On Hedge Funds' Risky Trade
Greg Ritchie and William Shaw - Bloomberg
The Bank of England stepped up warnings about hedge funds shorting US Treasury futures, saying its measure of the net position is now larger than before the "dash for cash" crisis in March 2020. The net short position has grown to $800 billion from about $650 billion in July, the central bank said, citing calculations based on Commodity Futures Trading Commission data. That suggests a jump in the so-called basis trade, which is where investors seek to exploit price differences between futures and bonds.
/jlne.ws/3tbmcib
The Bank of England is still v v worried about Treasury basis trades; The raised eyebrow has been deployed
Robin Wigglesworth - Financial Times
The Bank of England's financial stability committee met today, and the subsequent report indicates that it remains antsy about the engorged size of Treasury basis trades. The Financial Policy Committee - which some American grandees want to copy-paste to the US - includes top officials from the BoE, finance ministry and regulators and meets four times a year to discuss systemic dangers.
/jlne.ws/46O0JJU
New Binance chief refuses to disclose global headquarters' location; Richard Teng maintains stance taken by predecessor Changpeng Zhao, who pleaded guilty to US charges last month
Scott Chipolina and Nikou Asgari - Financial Times
The new chief executive of Binance has refused to disclose the location of the cryptocurrency exchange's global headquarters, maintaining a stance taken by his predecessor before the company pleaded guilty to US criminal charges. Richard Teng replaced Changpeng Zhao as CEO of Binance last month, after Binance entered guilty pleas to charges related to money laundering and international sanctions violations. Zhao resigned after pleading guilty to a charge relating to failure to protect against money laundering.
/jlne.ws/4a647ms
Oil and gas industry turn up in force at COP28 in Dubai, UN data shows; Campaign groups put total tally of sector's representatives at more than 2,450
Kenza Bryan - Financial Times
Oil and gas representatives outnumber most of the national delegations at COP28, an analysis of UN data by campaign groups has found, in a sign of increasing industry efforts to influence the discussion about global climate change policy. The breakdown of attendees identified more than 2,450 people designated as representatives from the fossil fuel sector, said a coalition of non-profit organisations under the Kick Big Polluters Out banner.
/jlne.ws/3RbZX3B
US regulators clamp down in bid to prevent more bank failures
Pete Schroeder and Nupur Anand - Reuters
U.S. bank supervisors are increasing scrutiny of lenders' risk management practices and taking disciplinary action as they try to fix problems that could lead to more bank failures, banking industry sources said.
/jlne.ws/3RyelVC
Wall Street bank bosses to warn US lawmakers that new regulations will hurt economy
Pete Schroeder and Michelle Price - Reuters
Top bosses of JPMorgan, Morgan Stanley, Goldman Sachs and other major banks planned on Wednesday to warn lawmakers that capital hikes and other new regulations being contemplated by U.S. bank regulators will hurt credit markets and the broader economy. Worker pay and rights, mortgages, financial stability and the economy are also likely to feature when the CEOs of the country's eight largest banks appear before the Senate Banking Committee on Wednesday, said executives and analysts.
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Zelenskiy Cancels Address to US Senate as Ukraine Aid Talks Stall
Erik Wasson and Zach C. Cohen - Bloomberg
Ukrainian President Volodymyr Zelenskiy canceled an address to the US Senate as negotiations stall on $61 billion in new weaponry and other aid to his country. The White House has warned that the US could completely run out of resources to assist Ukraine by the end of the calendar year. Yet the package continues to be held up by Republican demands that Democrats and the White House make major concessions on immigration policy to curb a surge in migrant crossings at the US border with Mexico.
/jlne.ws/3uLuUEt
Yellen Appeals to Congress as Republicans Block Fresh Aid to Ukraine
Christopher Condon - Bloomberg
Treasury Secretary Janet Yellen said US lawmakers hold Ukraine's fate in their hands as they block $61 billion in fresh funding requested by the Biden administration for the embattled East European country.
/jlne.ws/3t8BrZl
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| Israel/Palestine Conflict | | News about the recent (October, 2023) conflict between Israel and Palestine | Intelligence report warns of rising foreign terror threats
Catherine Herridge - CBS News
A new joint bulletin from the Departments of Homeland Security and Justice to local, state and federal law enforcement warns that groups like al Qaeda and ISIS will likely use the Israel-Hamas war "to increase calls for violence in the U.S. during the holiday season compared to prior years." It says the most likely "primary targets" could include churches, synagogues and members of the Jewish community.
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | CME Group to Launch FX Spot+ to Connect OTC and Futures Liquidity
CME Group
CME Group, the world's leading derivatives marketplace, today announced that it will launch CME FX Spot+, a new, all-to-all spot FX marketplace that will connect cash market participants with the company's FX futures liquidity. The offering is expected to be made available for client testing during the second half of 2024.
/jlne.ws/3uJECHo
Cboe Global Markets Reports Trading Volume For November 2023
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today reported November monthly trading volume statistics across its global business lines. The data sheet "Cboe Global Markets Monthly Volume & RPC/Net Revenue Capture Report" contains an overview of certain November trading statistics and market share by business segment, volume in select index products, and RPC/net capture, which is reported on a one-month lag, across business lines.
/jlne.ws/3RupeHK
Asia's first Saudi Arabia ETF lists on Hong Kong stock exchange; Saudi Arabia's $700bn sovereign wealth fund has been named as an anchor investor in the fund
Sinyi Au and John Sedgwick - Financial Times
Asia's first exchange traded fund investing solely in Saudi Arabia's equities market has listed on the Hong Kong exchange attracting $1bn in initial investment, marking one of the territory's largest ever debuts. The CSOP Saudi Arabia ETF was launched on the back of strong government support, after more than a year of high-level efforts by senior Hong Kong officials attempting to woo investment from the Middle East.
/jlne.ws/3GtWRTF
Product Modification Summary: Delisting of all Eris Bloomberg Short-Term Bank Yield Index (BSBY) Swap Futures Contracts
CME Group
Effective Monday, December 4, 2023, the Board of Trade of the City of Chicago, Inc. (CBOT or
Exchange) delisted the below Eris BSBY Swap Futures from CME Globex, and CME ClearPort.
/jlne.ws/41cRpy7
Product Modification Summary: Delisting of the Thailand Long Grain White Rice (Platts) Futures Contract
CME Group
Effective December 4, 2023, the Board of Trade of the City of Chicago, Inc (CBOT or Exchange)
delisted the below Thailand Long Grain White Rice (Platts) Futures from CME Globex and CME
ClearPort.
/jlne.ws/3t3tMvn
Three new additions to the MDAX
Deutsche Boerse
STOXX Ltd. has announced the new composition of the DAX index family. DAX, MDAX, SDAX and TecDAX bring together the largest companies (based on free float market capitalization) in the Regulated Market of the Frankfurt Stock Exchange that meet all of the basic criteria described in the rules . The indices are reviewed every three months. The Fast Exit and Fast Entry criteria will be used in the scheduled December review.
/jlne.ws/3RdtsCe
With 2024 In Sight, Geopolitical Risk & Inflation Dominate As Top Risks To The Financial Services Industry
DTCC
DTCC, the premier post-trade market infrastructure for the global financial services industry, today issued its annual Systemic Risk Barometer Survey results, which identified Geopolitical Risks, Inflation, U.S. Political Uncertainty / 2024 U.S. Presidential Election and Cyber Risk as the most significant threats to the financial services industry in the upcoming year. Geopolitical Risk was cited by 81% of respondents as the top risk for 2024, increasing from 68% last year. This is the second year in a row that Geopolitical Risk has been ranked as the top risk, as global tensions and conflicts continue to impact markets.
/jlne.ws/4a59XEF
Expanding liquidity: An interview with Henky Toha
Ross Lancaster from Acuiti - Eurex
Henky Toha founded HNK Alpha in 2000 and grew it into one of Singapore's most active proprietary trading firms. HNK Alpha has been a long-time advocate of electronic trading venues and supports liquidity in a range of asset classes and geographies. HNK Alpha has actively participated during the extended trading hours since its introduction. What benefits did Eurex's extended trading hours bring to your firm? As we are based in Asia, it is great to be able to trade Eurex products in our time zone, and I believe most of the financial community here would echo this view. Asia has repeatedly proven to be a critical piece of the 24-hour global trading time zone, and its importance to that system is only growing.
/jlne.ws/3uInyS5
Euronext announces December 2023 quarterly review results of the AEX Family
Euronext
Euronext today announced the results of the December 2023 quarterly review for the AEX, AMX, AScX and AEX ESG, which will be implemented after markets close on Friday 15 December 2023 and will be effective from Monday 18 December 2023.
/jlne.ws/41aWO91
Intercontinental Exchange Reports November 2023 Statistics
Intercontinental Exchange, Inc.
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology and market infrastructure, today reported November 2023 trading volume and related revenue statistics, which can be viewed on the company's investor relations website at https://ir.theice.com/ir-resources/supplemental-information in the Monthly Statistics Tracking spreadsheet. November highlights include: Total average daily volume (ADV) up 25% y/y; open interest (OI) up 9% y/y Energy ADV up 29% y/y; OI up 19% y/y, including record OI of 52.6M lots on November 23
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ICE Futures U.S. 2024 Martin Luther King Day Holiday Trading Schedule
ICE Futures U.S.
ICE Futures U.S. will observe the trading schedule below for the 2024 Martin Luther King Day holiday. Changes from regular trading hours and daily settlement window times are shown in bold, all times shown in NY time.
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Regular Constituents Change in Korea/Taiwan IT Premier Index in December, 2023
KRX
There will be regular constituents change in Korea/Taiwan IT Premier Index effective from December 11, 2023. For more details, please refer to the index data product file.
/jlne.ws/3RcPHbq
The number of private investors on the Moscow Exchange exceeded 29 million
MOEX
The number of individuals with brokerage accounts on the Moscow Exchange ( MOEX ) at the end of November 2023 reached 29.2 million, they opened 50.9 million accounts. Transactions on the Moscow Exchange were concluded by 3.7 million private investors. The share of individuals in the volume of trading in shares was 76%, in the volume of trading in bonds - 33%, in the spot currency market - 16%, in the derivatives market - 68%.
/jlne.ws/3NeLMtu
TMX Group Consolidated Trading Statistics - November 2023
TMX Group
TMX Group Limited today announced November 2023 trading statistics for its marketplaces - Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange (Alpha), including Alpha-X and Alpha DRK, and Montréal Exchange (MX).
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | The route to AI regulation is fraught but it's the only way to avoid harm; France, Italy and Germany are opposing EU plans to impose curbs on artificial intelligence foundation models
Marietje Schaake - Financial Times
The Open AI saga made it abundantly clear that democratic institutions ought to govern powerful AI systems. But contrary to some superficial statements that suggest one can be pro or anti regulation, the devil is in the details. There are battles over the direction AI regulation should take and what trade-offs are acceptable. We see the political discussion over choices of what to include or exclude in the EU AI Act unfolding as we speak.
/jlne.ws/47JpHLY
Elon Musk's start-up xAI seeks to raise $1bn; X owner's generative artificial intelligence company says it has already raised $135mn
current progress 19%
Hannah Murphy - Financial Times
Elon Musk's artificial intelligence start-up xAI is looking to raise $1bn in equity, according to a filing with the US securities regulator, as the billionaire races to challenge rivals such as OpenAI in the fast-growing field of generative AI.
/jlne.ws/41bS7Ma
GMEX ZERO13 Wins COP28 TechSprint And Continues Network Expansion
GMEX via Mondovisione
ZERO13, the GMEX Group initiative providing a digital climate fintech platform-as-a-service, is delighted to announce the addition of four new participants to its Asset Settlement Network and its selection as the winner of the prestigious COP28 TechSprint for blockchain technology. The COP28 TechSprint, launched by the Central Bank of the United Arab Emirates (CBUAE), COP28 Presidency, the Bank for International Settlements (BIS) and the Emirates Institute of Finance (EIF) recognises solutions that address challenges in sustainable finance and focus on scaling up climate action through advancing innovative technology solutions. The awards are based on problem statements developed in three categories: AI, Blockchain and IoT and Sensor Technologies. ZERO13 was selected as the winner in the blockchain category, delivering 'innovative blockchain solutions in sustainable finance to scale up climate action'.
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FIX Trading Community tackles the market's conflicting perceptions around addressable liquidity; Four types of addressable liquidity have been highlighted by FIX: Interactable liquidity, multilateral liquidity, multilateral "lit" liquidity, and multilateral "lit" liquidity excluding frequent batch auctions.
Claudia Preece - The Trade
The FIX Trading Community has unveiled new business standards covering definitions of addressable liquidity in a bid to clarify the markets' understanding and consolidate conflicting perceptions. FIX members found in its discussions that the term 'addressable liquidity' is empirically construed differently between market participants depending on the scenario under consideration.
/jlne.ws/3R71fgt
big xyt and Baillie Gifford partner to launch new portfolio liquidity analysis solution; New offering addresses dilution levy guidance for the buy-side by providing a quantitative view of the application of dilution charges.
Wesley Bray - The Trader
Market data provider big xyt has launched its new portfolio liquidity analysis solution, developed in partnership with Baillie Gifford, to address dilution levy guidance impacting the buy-side. The new solution provides buy-side firms with an independent view of the liquidity of equity portfolios by using market data.
/jlne.ws/3sWd3u1
BMLL completes China equity data offering with the addition of Shanghai data; New addition builds on existing China data from Shezhen and Hong Kong equity exchanges, with all three now available in a consistent format via the BMLL Data Lab.
Wesley Bray - The Trade
Historical Level 3 data provider BMLL has completed its China data offering, with data from every major mainland China equity exchange now available in one consistent format via the BMLL Data Lab. This latest development means that BMLL now covers data available from Shanghai - the latest addition - as well as Shenzhen and Hong Kong.
/jlne.ws/46LwLGv
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| Cybersecurity | | Top stories for cybersecurity | Is radical transparency the best weapon in companies' cyber war? Governments have been too slow to insist on information sharing and to offer non-judgemental support
Helen Thomas - Financial Times
It may be the ultimate example of a digital poacher turned gamekeeper. After ransomware gang AlphV/BlackCat attacked MeridianLink last month, the hackers decided that the software company hadn't complied with new Securities and Exchange Commission rules to disclose cyber incidents. So they notified the regulator of this failure, posting a photo of the form where the gang highlighted this "concerning issue".
/jlne.ws/4aj8ta2
Dragos Launches Program to Provide Water, Electric Utilities With Free Cybersecurity Tools
James Rundle - The Wall Street Journal
Cybersecurity company Dragos said it would provide free security software to small water, natural gas and electric utilities in the U.S., as a string of recent cyberattacks have drawn attention to weak defenses at critical infrastructure operators. Dragos will provide tools for threat detection and hunting, vulnerability management and threat intelligence free of charge to utilities with less than $100 million a year in revenue, said Robert Lee, the company's chief executive. The Community Defense Program also includes membership in OT-CERT, an information and threat intelligence sharing group for industrial cybersecurity, operated by Dragos.
/jlne.ws/3uMrVeT
Almost 50% of organizations plan to reduce cybersecurity headcounts: Survey
CSO
Even as the number of security incidents continues to grow in all sectors, 47% of the respondents plan to reduce their security headcounts, a new report by Observe has revealed. Remarkably, 62% of these organizations also reported a higher number of security incidents per month. The organizations planning to reduce cybersecurity headcount are also planning to lower infrastructure spending, according to the survey. The report by Observe, an observability company, is based on a survey of 500 full-time security decision makers and practitioners, conducted by CITE Research.
/jlne.ws/3R8I063
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| Cryptocurrencies | | Top stories for cryptocurrencies | Societe Generale to become first big bank to list a stablecoin; French lender launches trading of token fully backed by euros on Bitstamp exchange
Nikou Asgari - Financial Times
Societe Generale is set to launch its own stablecoin on a cryptocurrency exchange, becoming the first big bank to offer digital tokens tracking the price of hard currencies to a wide range of investors. France's third-largest bank on Wednesday will debut trading of its own stablecoin, called EUR CoinVertible, on Bitstamp, an exchange based in Luxembourg.
/jlne.ws/3t4EpOx
SEC Delays Grayscale Spot Ethereum ETF Decision, Extends Review to January 2024
Hope C - CoinMarketCap
The United States Securities and Exchange Commission (SEC) announced it will delay its decision on Grayscale's proposed Ethereum spot ETF. The SEC needs more time to assess a proposed rule change that would allow NYSE Arca to list and trade shares of the Grayscale Ethereum Trust.
/jlne.ws/46Ihm9X
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| Politics | | An overview of politics as it relates to the financial markets | Argentine Banks Bolt to One-Day Notes Before Milei Inauguration
Kevin Simauchi and Ignacio Olivera Doll - Bloomberg
Argentina's banks are fleeing central bank notes meant to absorb pesos from the economy, rolling over the lowest amount on record of the instruments in the lead up to the inauguration of President-elect Javier Milei. Lenders rolled over only 1.8% of the 1.6 trillion pesos of the so-called Leliqs at an auction Tuesday, according to people with direct knowledge of the matter. That's the lowest renewal rate since 2018, when the notes were first offered, and compares with a rate of more than 100% prior to the Nov. 19 election.
/jlne.ws/3uLwDJX
Top Wall Street CEOs will testify before Congress Wednesday. Here's what to expect.
Jennifer Schonberger and Ben Werschkul - Yahoo Finance
The CEOs of America's largest banks will line up before lawmakers this week in a highly anticipated appearance to try and convince Washington - and the world - that the banking sector is back on steady ground following the regional banking crisis earlier this year. The hearing before the Senate's banking committee is part of Congress's annual oversight of the financial sector and will feature top bosses from Jamie Dimon of JPMorgan Chase (JPM) and David Solomon of Goldman Sachs (GS) to Brian Moynihan of Bank of America (BAC).
/jlne.ws/3T8yyT3
Jamie Dimon takes aim at US bank rule proposals in Senate testimony; JPMorgan Chase boss criticises 'lack of economic analysis' behind consumer regulations
Joshua Franklin - Financial Times
JPMorgan Chase chief executive Jamie Dimon hit out again at a variety of proposed new US bank regulations, telling lawmakers that the rules risked hurting low-income customers and would add more risks to the financial system.
/jlne.ws/3RveFEj
Putin Makes Rare Foreign Trip to Gulf With Oil, War in Focus
Bloomberg
Russian President Vladimir Putin arrived in the United Arab Emirates to start a rare foreign trip that will also include a visit to Saudi Arabia, with bolstering cooperation among strategic oil producers a top priority. Putin was greeted by senior officials from the country upon exiting the plane in Abu Dhabi Wednesday, according to a broadcast on Russian state TV.
/jlne.ws/3GvKsi8
China Says Taliban Government Must Reform to Get Recognized
Bloomberg
China said the Taliban government in Afghanistan should make major changes to its style of governance in order for Beijing to officially recognize it. "We expect Afghanistan to respond to the expectations of the international community and apply moderate policy, have friendly exchanges and engagement with regional countries and other countries in the world, and return back to the big family of the world as soon as possible," Foreign Ministry spokesman Wang Wenbin said at a regular briefing Tuesday in Beijing.
/jlne.ws/3Gw0EA8
Raimondo says US supports growth in China if Beijing 'plays by the rules'
Nick Robertson - The Hill
/jlne.ws/3Tdx9dR
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| Regulation & Enforcement | | Stories about regulation and the law. | Hedge Fund Trader Shah Extradited to Denmark a Year After Arrest
Adveith Nair and Sanne Wass - Bloomberg
Sanjay Shah, a hedge-fund trader accused of defrauding the Danish state of $1.3 billion in the Cum-Ex trading scam, has been handed over to Denmark to face criminal charges just over a year after he was arrested in Dubai. Shah was taken into custody by police on his arrival in Copenhagen on Wednesday, and will be taken to court for a bail hearing on Thursday morning, Danish police said in a statement.
/jlne.ws/3T8vKoZ
Trafigura charged in Switzerland over alleged Angolan bribery; Prosecutors say that commodities trading group bribed a government official between 2009 and 2011
Sam Jones and Tom Wilson - Financial Times
Switzerland's federal prosecutor has charged Trafigura, the international commodity trading group, with bribing foreign officials. In a criminal indictment filed on Wednesday, Trafigura and its former chief operating officer, Mike Wainwright, were accused by Swiss investigators of arranging about EUR5mn of bribes to an Angolan government official between 2009 and 2011.
/jlne.ws/3Ruargf
SEC Office of the Investor Advocate Publishes Its Policy Recommendations on Mandatory Arbitration and Registered Index-Linked Annuities Research
SEC
The Office of the Investor Advocate of the Securities and Exchange Commission today published its Report on Activities for the Fiscal Year 2023 to Congress. The report highlights the work of the Office during the fiscal year.
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SEC Obtains Judgments Against Former Hemp Company Executives for Fraudulent Offerings
SEC
On December 1, 2023, the United States District Court for the Southern District of New York entered consent judgments against Frank Barone and Kirill Chumenko, both former Senior Vice Presidents of Sales & Marketing at CanaFarma Hemp Products Corp. ("CanaFarma"), in connection with an approximately $15 million offering fraud. The SEC previously charged CanaFarma, a Canadian start-up hemp company with offices in Vancouver and New York, and its two co-founders, Vitaly Fargesen and Igor Palatnik, in connection with the same scheme.
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SEC Obtains Final Judgment Against CodeSmart Defendant for Role in Alleged Offering Fraud
SEC
On December 4, 2023, the U.S. District Court for the Eastern District of New York entered a final judgment against Marc Wexler, enjoining him from violating certain provisions of the federal securities laws.
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FMA publishes 2023 annual report
Financial Markets Authority
The Financial Markets Authority (FMA) - Te Mana Tatai Hokohoko - today published its annual report for the year to 30 June 2023. The report captures the FMA's delivery of its core activities to monitor and supervise firms for conduct, implement new legislation, publish guidance to industry, enforce the law, and provide resources for investors and consumers. The report shows the FMA has successfully achieved all its performance measures.
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MAS Publishes Code of Conduct for Providers of Environmental, Social, and Governance ("ESG") Rating and Data Products
Monetary Authority of Singapore
Singapore, 6 Dec 2023... The Monetary Authority of Singapore (MAS) today published its finalised Code of Conduct for ESG Rating and Data Product Providers ("CoC") and an accompanying Checklist for providers to self-attest their compliance to the CoC ("Checklist"), following a public consultation conducted from June to August 2023.
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Michael Dell Flags Plan to Donate Stock Worth $1.7 Billion
Tom Maloney - Bloomberg
Michael Dell is taking steps to donate Dell Technologies Inc. shares worth as much as $1.74 billion. Dell converted 25 million shares owned by him and a trust in the name of his wife from unlisted Class A to listed Class C stock on Dec. 1, the company said Tuesday in a filing. The conversion was done in anticipation of a "future charitable donation of some or all of the shares," according to the filing. He donated about 249,000 of the shares to his family foundation on Monday, a separate filing showed. Dell, 58, who owns more than 50% of the computer company's stock, is the world's 20th-richest person with a $65.4 billion fortune, according to the Bloomberg Billionaires Index.
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Cocoa Rally Fuels Bean Theft, Soaring Rents in Cameroon, Nigeria
Pius Lukong and Tolani Awere - Bloomberg
From thieves stealing pods to traders rigging scales - high drama is unfolding in Nigeria and Cameroon's cocoa markets - as everyone jostles for the massive profits on offer as prices of the chocolate ingredient have soared to their highest in over forty years. Production shortfalls in West Africa, where much of the world's cocoa is grown, are driving the rally. With the heart of the harvest season now underway, the rush of unusual developments highlights the fight over the limited supply and complicates how much farmers ultimately benefit from the price gains.
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Rio Puts Cost of Giant Guinea Iron Ore Mine at $6.2 Billion
Sybilla Gross - Bloomberg
Rio Tinto Group will spend around $6.2 billion on development of the vast Simandou iron ore deposit in Guinea, its first official estimate for a marathon project that aims to deliver high-quality material for steelmakers seeking to curb emissions. Outlining a $30 billion capital-expenditure plan for the group over the coming three years, Rio said initial production from its Simfer joint venture in Simandou is expected from 2025, faster than most analysts had forecast. That would come after completion of what will be one of Africa's largest-ever infrastructure projects, including hundreds of kilometers of rail and a port.
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ByteDance Offers Investors a Buyback at $268 Billion Valuation
Zheping Huang and Jane Zhang - Bloomberg
ByteDance Ltd., parent of social video phenom TikTok, is offering to buy back up to $5 billion from investors, according to people familiar with the matter. The new offer, earlier reported by the South China Morning Post, is pitched at $160 per share, the same level as ByteDance offered to employees in November, the people said, asking not to be named discussing a private matter. It's at a valuation roughly 11% lower than the price ByteDance offered to investors in 2022, which would still place it among the 40 most valuable public companies in the world and third in China behind Tencent Holdings Ltd. and Kweichow Moutai Co.
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China Fund Beating 98% of Peers Spurns AI Trade on Risks
Bloomberg
A technology-focused China equity fund outperforming 98% of peers this year advises caution over the frenzy in artificial intelligence themes, saying it might be the biggest underpriced risk in the market. "There are huge fundamental risks, especially in terms of public safety, in AI at this current stage," said Yun Bingwang, an investment officer at Qingdao Luxiu Investment Management Co. in an interview last week. "These uncertainties mean that we cannot make investment decisions."
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | India Green Hydrogen Aid Gets Cautious Response From Investors
Rajesh Kumar Singh - Bloomberg
India's first tranche of subsidies as part of a $2.4 billion green hydrogen plan attracted bidders including Sembcorp Industries, JSW Energy Ltd. and AM Green, while other major companies stayed away, according to people familiar with the development.
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Why investors failed to embrace Jeff Ubben's Inclusive Capital
Ortenca Aliaj, Antoine Gara and Patrick Temple-West - Financial Times
Earlier this year the activist Jeff Ubben predicted that the first model of the environmental, social and governance investing movement would eventually disappear. It was a surprising claim for an investor who just three years before had launched a hedge fund inspired by Rachel Carson's landmark environmental book, Silent Spring. But Ubben also predicted that firms like his, which typically buy stakes in non-ESG friendly companies in an attempt to drive change from within, would succeed.
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Eurozone banks 'greenwash' loans to big polluters, ECB says; Lenders are 'reluctant to disrupt' relations with large COâ‚‚ emitters
Martin Arnold - Financial Times
Commercial banks in the eurozone that portray themselves as green are doing the most new lending to big polluters, according to a blog published by the European Central Bank on Wednesday. The article, timed to coincide with this week's COP28 climate summit in Dubai, said lenders guilty of "greenwashing" had granted about 4 per cent more new loans each year than the average bank to companies doing most harm to the environment.
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The looming land grab in Africa for carbon credits
Kenza Bryan - Financial Times
One day in late October, leaders from more than a dozen towns across Liberia's Gbi-Doru rainforest crammed into a whitewashed, tin-roofed church.
They had gathered to hear for the first time about a deal signed by their national government proposing to give Blue Carbon, a private investment vehicle based thousands of miles away in Dubai, exclusive rights to develop carbon credits on land they claim as theirs.
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Sovereign wealth funds struggle to turn their trillions to climate finance
Libby George and Hadeel Al Sayegh - Reuters
Sovereign wealth funds that control nearly $12 trillion in assets are unlikely to quickly dismantle the hurdles in the way of urgently needed increases to their climate investments, even as COP28 talks seek to close the funding gap. Funds such as those of Norway and the United Arab Emirates, COP28 host, face obstacles including mandates that require predictable returns that make it hard to find enough sustainable projects in which they can invest.
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COP28: John Kerry and Al Gore Are Naming and Shaming
Sharon Chen - Bloomberg
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Three additions to the MDAX
Qontigo
DAX, MDAX, SDAX and TecDAX represent the largest companies (by free float market capitalization) on the Regulated Market of Frankfurt Stock Exchange, which meet the basic criteria as defined in the rulebook. The indices are reviewed every three months. The scheduled December review includes the Fast Exit and Fast Entry rules.
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JPMorgan Chase says it's running out of branches to close
Orla McCaffrey - American Banker
JPMorgan Chase is running out of branches that it wants to close. America's largest bank has already optimized much of its branch network, leaving it with "less and less accretive opportunities to consolidate," Marianne Lake, co-CEO of JPMorgan's consumer and community banking unit, said Tuesday at a Goldman Sachs conference.
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | Japanese Buyers Snap Up New York, London Buildings in Spending Spree
Lisa Du - Bloomberg
Japanese investors are spending the most in two decades to buy up properties overseas, undeterred by the global real estate slump and the yen's decline to a 50-year low. A Manhattan skyscraper, data centers in Toronto and office buildings in London are among the assets that Japanese companies and pension funds have scooped up this year. Flush with cash and in the only developed economy with access to rock-bottom financing rates, their purchases are giving some relief to the market as rising office vacancies and interest rates keep other buyers away.
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HSBC Cuts at Least Four Bank Jobs in Hong Kong as Deals Dry Up
Denise Wee and Manuel Baigorri - Bloomberg
HSBC Holdings Plc has seen at least four Hong Kong-based bankers leave amid a dearth of deals in the region, according to people familiar with the matter.
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Wells Fargo CEO warns severance costs could hit $1B this quarter as more layoffs loom
Lydia Moynihan - NY Post
Wells Fargo CEO Charles Scharf warned severance costs this quarter could hit nearly $1 billion as the mega bank prepares for fresh layoffs in the coming year. "We're looking at something like $750 million to a little less than a billion dollars of severance in the fourth quarter that we weren't anticipating," Scharf said at a Goldman Sachs investor conference in New York Tuesday.
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Vegan vs. omnivore: Which diet is better for your cardiovascular health? A study suggests that a vegan diet is better for heart health than a healthy omnivore diet.
Medical News Today
In 2020, about 523 million peopleTrusted Source around the world had some type of cardiovascular disease. Also that year, cardiovascular diseases were attributed to an estimated 19.1 million deathsTrusted Source around the world. High levels of "bad" low-density lipoprotein (LDL) cholesterolTrusted Source, insulin resistanceTrusted Source, and obesityTrusted Source are all known factors that can increase a person's cardiovascular disease risk. These risk factors can be lowered in different ways, including by eating a healthy diet. Using pairs of identical twins, researchers from Stanford University have found that following a vegan diet can help improve a person's cardiovascular health in as little as eight weeks compared to those who follow an omnivore diet.
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UAE's COP28 Promises on Climate, Health Ignored at Home; Country's Migrant Workers Face Climate-Related Harms to Their Well-Being
Michael Page, Deputy Director, Middle East and North Africa Division - Human Rights Watch
On Health Day at the COP28 climate conference in the United Arab Emirates, 124 countries endorsed the COP28 UAE Climate and Health Declaration, which commits to putting health at the center of climate action. Yet just outside the conference venue, migrant workers are exposed to health harms associated with escalating effects of climate change and fossil fuels, including extreme heat and air pollution, without adequate protections.
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | India Stock Value Tops $4 Trillion, Narrowing Gap With Hong Kong
Ashutosh Joshi - Bloomberg
India's stock market value reached more than $4 trillion Tuesday for the first time, marking a key milestone for the world's fifth-biggest equity market as it rapidly narrows the gap with slumping Hong Kong. The market capitalization of companies listed on India's exchanges has risen by $1 trillion in less than three years, as the South Asian market emerges as one of the best performers in the region as well as the emerging world.
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China Metals Firms See US Rules Unlikely to Upend Supply Chains
Annie Lee and Martin Ritchie - Bloomberg
Chinese firms producing and processing battery materials see new US rules aimed at limiting Beijing's grip on the electric-vehicle industry as less stringent than feared, allowing them to preserve a key role in the global supply chain. Washington's move, which seeks to cut China out of US tax credits and curb the country's control over joint ventures, created uncertainty at the end of last week, with questions swirling around the status of Chinese-owned battery-material operations outside the mainland, and over the impact on the wider car and battery industry.
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Korea Finance Nominee Likens Aging Demographics to Titanic Iceberg
Jaehyun Eom and Sam Kim - Bloomberg
South Korea's nominee for finance minister compared challenges posed by the country's aging demographics to the iceberg that sank the Titanic, calling for immediate steps to cope with the situation. "It's already too late," Choi Sang-mok told reporters on Tuesday. "A ship like the Titanic has no choice but to crash by the time it discovers a reef."
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Saudis Cut Asia Oil Prices After OPEC+ Deepens Output Curbs
Alfred Cang, Serene Cheong and Alex Longley - Bloomberg
Saudi Arabia slashed its official crude oil selling prices to Asia by the most since February after OPEC+ output cuts that aim to curtail weakness in physical markets. State-owned Saudi Aramco lowered its flagship Arab Light price to Asia for January by 50 cents to $3.50 a barrel more than the benchmark, according to a price list. While that's less than the $1.05 a barrel reduction estimated in a Bloomberg survey, it is also the first time since June the kingdom has reduced the value of its flagship grades.
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'Messi of finance': Argentina economy chief faces World Cup of crises
Eliana Raszewski, Jorgelina do Rosario and Rodrigo Campos - Reuters
Luis Caputo was once nicknamed the "Messi of finance" for reopening Argentina's access to credit markets after lengthy negotiations with debt holdouts. He now faces a World Cup-sized challenge to fix the South American country's worst economic crisis in decades.
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America's energy boom: Crude exports soar to record high
Greg Miller - FreightWaves
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