| July 18, 2024 | "Irreverent, but never irrelevant" | | | | John Lothian
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Hits & Takes
John Lothian & JLN Staff
The SEC let loose with a humdinger of an opinion yesterday, one where it was hard to keep the players straight. In one corner is BOX Exchange, a national securities exchange registered with the SEC. BOX Exchange oversees BOX Market, a facility of the exchange that is privately owned by BOX Holdings. Are you with me so far? At the time of the problems, Luc Bertrand was the interim chair or chair of the board of directors of both BOX Holdings Group LLC ("BOX Holdings") and BOX Options Market ("BOX Market").
There are your players. Back in December and April of 2021, Box Exchange asked for some documents and information from BOX Holdings, BOX Market and Luc Bertrand.
According to BOX Exchange, applicants did not fully cooperate with those requests. BOX Exchange then determined that Bertrand acted, and continued to act, in a manner that was "not in the interests of the Exchange" and "in bad faith," and that he deliberately breached and continued to breach "his duty to the Exchange." As a result, on March 3, 2022, BOX Exchange ordered Bertrand to pay a $25,000 fine, and on April 15, 2022, it suspended him "from involvement with the Exchange, any facility of the Exchange and any Member of any of the [BOX] entities."
On April 21, 2022, BOX Exchange lifted the fine and suspension imposed against Bertrand.
On May 16, 2022, Applicants filed an application for review of BOX Exchange's actions pursuant to Exchange Act Rule 19d-3 and Commission Rule of Practice 420.
However, because the holding company and BOX Markets are not a member, participant, or person associated with a member of the exchange, as required for a disciplinary sanction to be reviewable under Section 19(d), the action of BOX Exchange was not reviewable by the SEC.
This is all interesting, as BOX Exchange, as the securities exchange, is the regulator. It is also 54 percent owned by TMX Group. The chair of TMX Group as of 2023 is Luc Bertrand. So he has gone from chair of the entities being regulated and personally being fined for "breaching his duty" to the exchange to being chair of the entity that owns a majority interest in the SRO/securities exchange that displayed him and BOX Market and BOX Holdings. My guess is this matter just gets dropped.
CFTC Commissioner Kristin N. Johnson is set to deliver the keynote address at the USDA Advisory Committee meeting on Tuesday, July 23, 2024, at 9:30 am ET. The event will be held at the Tarrytown House Estate on the Hudson, located at 49 East Sunnyside Lane, Tarrytown, NY 10591. Commissioner Johnson's address is expected to cover key issues and initiatives relevant to the USDA and its advisory committee.
In the first half of 2024, EEX Group saw significant volume growth across major asset classes. The global power market volume increased by 47%, driven by a 24% rise in European power spot markets and a 78% increase in European power derivatives, with French and Spanish power futures doubling. Japanese power futures more than tripled, and US power derivatives grew by 6%. EEX launched new products, including Nordic Zonal Futures, and initiated Brazilian power market operations.
US natural gas futures nearly doubled, while European gas derivatives grew by 7%. EEX launched USD-denominated TTF futures, increasing total market volume by 21%. European environmental markets rose by 44%, with emissions futures up by 131%, and North American environmental products grew by 65%. Agricultural markets also saw a 13% rise, with dairy futures increasing by 31%.
EEX CEO Peter Reitz highlighted the group's role in supporting the energy transition and the integration of renewables, noting the increased participation of high-frequency traders and the expansion of market-based instruments.
Citadel's Ken Griffin bought a dinosaur. No, this is not a joke about him making a political contribution. He really bought a dinosaur, a 150mn-year-old stegosaurus known as "Apex" for $44.6 million, according to a Financial Times story.
Are you a fintech innovator? Don't miss the deadline to sign up for the FIA Innovators Pavilion at the annual Futures and Options Expo. Each year, the FIA offers fintech startups a chance to showcase their solutions for the derivatives industry at its Innovators Pavilion, part of the Expo. Since 2015, over 150 startups have participated, presenting new technologies and engaging with key industry figures. Expo 2024, scheduled for November 19-20 at the Sheraton Grand Chicago Riverwalk, will feature selected startups in a techpod on the trade show floor and a pitch competition before senior executives from various financial institutions. Applications for the 2024 Innovators Pavilion & Pitch Competition are open until July 26. Sign up HERE.
IEX's BoxesAndLines podcast has a special edition featuring legendary Irish Olympians Eamonn Coghlan and Vanguard's Gerry O'Reilly. Host Ronan Ryan, who is also the chair of GOAL USA's board of directors, is preparing for a 10K charity race in November to support GOAL Global's humanitarian efforts in Ethiopia. The episode includes running tips from Eamonn and Gerry, and a humorous attempt at an Irish accent by John Ramsay
Have you ever watched the bonus quantitative videos from the Futures Discovery series? In Episode 11, Corties Draper took a deeper dive into the subject of book matching algorithms from a quantitative standpoint. Corties is a graduate of Roosevelt University's CCCF Honors program in quantitative finance. He will start in the Master of Science in Management Science and Analytics program with a specialization in Quantitative Finance at the Illinois Institute of Technology this fall. Here is BONUS: Algorithmic Adventures - A Quantitative look: Futures Discovery EP 11.
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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This is a must watch video from the Financial Times on ESG: "Who killed the ESG party." ESG - that's an acronym for Environmental, Social and Governance, a term that most Americans don't know and is quickly becoming an artifact as winds to eradicate the term continue at gale force. If you have watched or listened closely to the ESG / Environmental Markets Roundtables done by John Lothian News with executives from stock exchanges including Intercontinental Exchange Group Inc., the Luxembourg Stock Exchange, Nasdaq, and executives Nandini Sukumar and Victoria Powell from the World Federation of Exchanges, you will hear stories of the hard work, highly responsible and long-term reasoned approaches that many exchanges are taking to usher in the next evolution of capitalism, no matter what it is called. What we call ESG today could become known as sustainability, and will undoubtedly morph into something else as measurement and methods and what makes sense is sorted out. The term ESG might be a blip, but what it represents is not going away. As one commentator in the FT article says: "What's important is that serious work is done to really grapple with the challenges and the opportunities that we face. And those who do it right will be surfing the wave of the single biggest economic transformation, and one of the biggest opportunities in the whole history of human civilisation."~SAED
Our most read stories from our previous edition of JLN Options were:
- Miami International Holdings Announces SEC Approval of MIAX Sapphire Exchange from MIAX.
- Marex makes latest clearing sales hire from BAML from FOW.
- EEX power futures volumes surge in first half on European demand from FOW. ~JB
Subscribe to the JLN Options Newsletter HERE (it's free).
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Options Education Goes Mobile: How Mat Cashman Is Bringing Wall Street to Your Pocket
JohnLothianNews.com
In the dynamic world of financial derivatives, Mat Cashman of the Options Industry Council (OIC) is on a mission to demystify the complex realm of options trading. As part of the OIC's investor education team, Cashman is at the forefront of a digital revolution in financial literacy, adapting to the changing habits of a new generation of traders.
Watch the video »
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Russian minister blames US media for hindering prisoner swap talks on jailed reporter Gershkovich
Jade Lozada - Associated Press
Russia's foreign minister blamed American journalists Wednesday for helping delay talks with his U.S. counterparts about a possible prisoner exchange involving imprisoned Wall Street Journal reporter Evan Gershkovich. A day before Gershkovich is scheduled to appear in court on espionage charges, Sergey Lavrov told a U.N. news conference that confidential negotiations are still "ongoing."
/jlne.ws/4f9Rdq8
****** There are a lot of things you can blame the American media for, including me, but this is not one of them.~JJL
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Ken Griffin buys 150mn-year-old stegosaurus for $44.6mn; Citadel founder purchases nearly complete specimen at Sotheby's auction
Zehra Munir and Brooke Masters - Financial Times
Ken Griffin, the Citadel hedge fund founder, has paid $44.6mn for a 150mn-year-old stegosaurus known as "Apex", making it the most valuable fossil ever sold at auction. The fossil - which is 11ft tall and 27ft long - surpassed its presale low estimate by more than 11 times, according to Sotheby's, the New York auction house, on Wednesday. While the bidder was officially anonymous, a person familiar with Griffin's plans confirmed the purchase and said he intended to put it on display at a US museum. "Apex was born in America and is going to stay in America," Griffin told the auction house, which it cited in a press release about the sale.
/jlne.ws/4cLlav2
***** Here is The Wall Street Journal's version of this story.~JJL
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Wednesday's Top Three
Our top story Wednesday was Miami International Holdings Announces SEC Approval of MIAX Sapphire Exchange, from MIAX. Second was You Can Never Have Too Much Money, Happiness Researcher Finds, from Bloomberg. Third was Dr. Ruth's Tips for a Happy Life, from The New York Times.
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| Lead Stories | The young investors gambling on Indian stocks; Millions of India's citizens have piled into shares and options, egged on by online 'finfluencers', but regulators are sounding the alarm
Chris Kay and Benjamin Parkin - Financial Times
"How many of you want to be rich?" Hundreds of hands shoot up at a packed conference hall in the southern Indian city of Bengaluru. The attendees are responding to Chandan Taparia, head of derivatives research at financial group Motilal Oswal. Roaming the stage as an array of technical charts pop up on screen, Taparia shares his market trading tricks to the fixated assembly of largely young Indian men hanging on his every word and intently jotting down strategies on a recent Sunday. "Friends, if you follow this, trust me, you won't lose," Taparia notes in an aside. "If you don't take risks, you cannot survive in the market, you cannot achieve your goal," he adds. "If you win, you can rule the world."
/jlne.ws/3Y5Dcn5
Eurex expands crypto derivatives suite with the launch of Ether futures and options; Development builds upon the launch of FTSE Bitcoin index futures and options last year, with the new Ether offering listed in EUR and USD.
Wesley Bray - The Trade
Eurex is set to expand its crypto derivatives portfolio with the launch of FTSE Ethereum index futures and options on 12 August. The move builds upon the launch of FTSE Bitcoin index futures and options last year, falling in line with Eurex's goal to offer secure access to cryptocurrencies in a regulated market environment.
/jlne.ws/3y2BBnw
BOE Is Scrutinizing Bank Margin Rules to Stop Another Archegos; Latest system-wide exploratory scenario examines margin rules; The BOE has said a more extensive report will come this year
Greg Ritchie - Bloomberg
UK regulators are examining the policies banks use when deciding how much margin to demand from clients as they look to avoid another incident like the implosion of Archegos Capital Management, which cost the industry billions of dollars and plunged Credit Suisse into a crisis that ultimately led to its collapse. The Bank of England is trying to understand how clients' willingness to share their full list of market positions could affect banks' margin decisions, according to Nathanaël Benjamin, executive director of financial stability strategy and risk at the central bank. Banks that require too little collateral from the clients they provide leverage to can undermine financial stability, he said.
/jlne.ws/3LtlS3X
GIX trading platform the first green securities exchange to file with the SEC; If approved by the SEC, the Green Impact Exchange (GIX) is expected to begin operations in early 2025; founders previously served in senior positions at the New York Stock Exchange (NYSE).
Claudia Preece - The Trade
The Green Impact Exchange (GIX) is on track to becoming the first sustainability-focused securities exchange in the US to file with the US Securities and Exchange Commission (SEC), and if approved, could begin operations in early 2025. GIX submitted its Form 1 application on 9 May 2023, outlining plans to operate a fully automated electronic trading platform for the trading of listed equities - no physical trading floor is planned.
/jlne.ws/3Lud91n
Brookfield Lines Up a 36-Year-Old Rising Star as Next Billionaire CEO; High inside the alternative-asset giant, it's an open secret that bosses are preparing Connor Teskey to take over
Layan Odeh and Dinesh Nair - Bloomberg
It was a takeover big enough to transform Brookfield Asset Management into a behemoth. Behind it was a young, ambitious executive obsessed with the details - making an impression on bosses that would put him on the path to become CEO. Connor Teskey was supposed to be tending to investments in renewables when he pitched higher-ups on the idea of taking a controlling stake in Oaktree Capital Management. He studied its business lines, read every letter that founder Howard Marks ever sent to investors, crunched the numbers and arranged the underwriting. The roughly $5 billion deal announced in 2019 helped catapult Brookfield into the world's second-largest alternative-asset manager.
/jlne.ws/4bN4Ete
Goldman Sachs Opens Up an Investment Strategy Once Reserved for the Wealthy; Bank looks to boost fee revenue by offering new investment portfolios to customers of robo-adviser Betterment
AnnaMaria Andriotis - The Wall Street Journal
Goldman Sachs is turning to Main Street investors to boost its fee revenue. The bank plans to offer some of the sophisticated investment strategies that it has long reserved for its deep-pocketed clients to customers of robo-adviser Betterment. Goldman is structuring portfolios for everyday investors that are meant to help them save money on their taxes, in part by moving their cash from ultrasafe bank accounts to fixed-income exchange-traded funds that involve more risk. The funds will hold short-term Treasurys, municipal and investment-grade corporate bonds.
/jlne.ws/4fb80sC
Russia Threat Reaches 'Across Europe,' U.K. Leader Tells Summit; More than 40 European leaders, including President Volodymyr Zelensky of Ukraine, are meeting in England. Fears over the continent's security loom large.
Stephen Castle - The New York Times
The venue is an opulent 18th-century palace, the birthplace of Winston Churchill. The guests include more than 40 of Europe's leaders. And King Charles III is on hand to host a reception. Yet despite the serene grandeur of the surroundings at Blenheim Palace, near Oxford, the continent's top politicians are meeting in Britain on Thursday in a mood of heightened anxiety and with a growing urgency to find common cause in an unsettled world.
/jlne.ws/3LqWbkJ
Trump is starting to move markets
Rick Newman - Yahoo Finance
Donald Trump has had a surprisingly solid summer, raising the odds, for now, that he'll win a second presidential term. That's why financial markets are reawakening to the "Trump trade," with varying implications for stocks, bonds, cryptocurrencies, interest rates, and inflation. Trump's upturn began with the June 27 presidential debate in which President Joe Biden's bumbling raised more questions than ever about the incumbent's age and stamina. Ever since, a swelling chorus of Democrats has been calling for Biden to withdraw and let Vice President Kamala Harris or another younger Democrat take on Trump.
/jlne.ws/467k1vf
Trump Odds Have Traders Splitting Asia Into His Friends, Foes
John Cheng, Winnie Hsu and Ivy Chok - Bloomberg
Stock traders in Asia are ramping up the Trump trade in preparation for a potential second term for the former US president, which will likely create winners and losers in the region. Donald Trump's "America first" policies on trade, defense and other industries would hamper the outlook of a myriad of sectors in Asia from agriculture and farm equipment to textiles and weapons production. Asian companies' momentum in the global race for electric vehicles and chips could slow should a Trump administration follow through on his pledges.
/jlne.ws/3Y4blDZ
Biden Faces Intensified Calls to Step Aside While Ill With Covid; Illness forces president to leave trail at critical moment; Drumbeat of calls from lawmakers for him to stand aside grows
Justin Sink - Bloomberg
Joe Biden can't catch a break. It seemed like things couldn't get much worse for the president after he was diagnosed Wednesday with Covid-19, dashing his hopes of counter-programming the Republican National Convention by forcing him to cancel an appearance before a key Latino advocacy group. Then, the dam broke. A flood of leaks detailed senior leaders in the Democratic Party warning Biden personally that he was unlikely to defeat Donald Trump and was putting his congressional allies at great risk.
/jlne.ws/4f5TtP7
The EU Is Facing a Looming Gas Supply Crisis
OilPrice.com
The European Union (EU) targets a ban on Russian fuel imports by 2027. However, nearly half of Russia's pipeline gas supplies to Europe and Moldova are still passing through Ukraine, totaling 13.7 billion cubic meters (Bcm) in 2023. As the EU discusses the possibility of involving Azerbaijan in a future transit deal, the current five-year gas transit agreement between Russia and Ukraine is set to expire by the end of 2024, leading to concerns about the future flow of these gas volumes. Rystad Energy predicts that Russia's gas will need to be rerouted to Europe through alternative paths, requiring an additional 7.2 Bcm per year of liquefied natural gas (LNG) to replace the gas transiting Ukraine. Supply disruptions may occur sooner than initially expected, as indicated by the Austrian company OMV's market warning in May.
/jlne.ws/3Lu6DYB
SEC Awards Whistleblower $37 Million for Aiding Investigation
Tom Schoenberg - Bloomberg
An anonymous whistleblower will receive more than $37 million for helping financial regulators investigate misconduct, according to the US Securities and Exchange Commission. The tipster met with SEC staff and identified potential witnesses and documents that "significantly contributed" to a successful enforcement action, the agency said in a statement on Wednesday. Neither the enforcement action nor the identity of the whistleblower were disclosed, following agency policy.
/jlne.ws/4d4eIPx
Secretive China Agency Backtracks on Aggressive Policies After $1 Trillion Rout; CAC holds the keys to data, AI and overseas listings; Its stance is crucial to business and China's economy
Sarah Zheng and Josh Xiao - Bloomberg
By Communist Party standards, the Cyberspace Administration of China's rise has been nothing short of breathtaking. In just over 10 years, the regulator has morphed from a singularly minded online censor into one of the country's most powerful administrators - with oversight of both data and artificial intelligence, two pillars of future economic growth. But the CAC's rapidly expanding portfolio has also appeared to leave some of its bureaucrats overwhelmed, according to people familiar with the matter. That has contributed to a sense of confusion in recent years, according to interviews with more than a dozen executives, consultants and lawyers who work with the agency or advise foreign businesses.
/jlne.ws/4cLiYUk
Trader in Morgan Stanley case says he is target of 'smear campaign'; Former Segantii employee Robert Gagliardi says SEC does not plan action against him
Kaye Wiggins and Ortenca Aliaj and Robert Smith - Financial Times
The former Segantii Capital Management employee whose trading formed part of the US probe into Morgan Stanley that the Wall Street bank settled this year for $249mn has said the Securities and Exchange Commission is not planning to take action against him. Block trading specialist Robert Gagliardi made the statement in court filings for a breach of contract lawsuit he is bringing against his subsequent employer, hedge fund Evolution Capital Management, which he says owes him a $7.5mn bonus.
/jlne.ws/4d42ark
Anglo American sounds alarm on diamond market; Deepening downturn adds to pressure on mining group after rejecting BHP bid
Harry Dempsey - Financial Times
Anglo American has warned that its De Beers diamond division will cut production further as a pullback in spending by Chinese consumers leaves the market facing a protracted depression. The pullback in output would add to already implemented plans to curtail production by 10 per cent at the world's largest diamond mining company by value, which resulted in second-quarter output falling 15 per cent year on year to 6.4mn carats, according to an update on Thursday.
/jlne.ws/469910m
Canary Wharf plans to take chunks out of HSBC tower in office overhaul; Financial district has to repurpose monolithic building as anchor tenant prepares to quit in 2027
Joshua Oliver - Financial Times
Canary Wharf Group plans to remove large chunks of the HSBC tower's facade as the east London financial district reimagines the purpose-built office for an era without the bank. The cuts will carve out new terraces by making some floors smaller, and divide the flagship 8 Canada Square building into sections that will be easier to lease when HSBC moves out in 2027 after 25 years.
/jlne.ws/3WvFzyE
SpectrAxe and OSTTRA partner to streamline FX options trading; The offering works from price discovery through to execution, booking, and risk management within the FX options market - combining SpectrAxe's price discovery and execution CLOB with OSTTRA's post-trade network.
Claudia Preece - The Trade
SpectrAxe and OSTTRA have partnered on an end-to-end service aimed at streamlining FX options trading through automation of the entire process. Specifically, the offering works from price discovery through to execution, booking, and risk management within the FX options market - combining SpectrAxe's price discovery and execution CLOB with OSTTRA's post-trade network.
/jlne.ws/3WpmEFw
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| Ukraine Invasion | | News about the invasion of Ukraine by Russia and its military, economic, political and humanitarian impact | Russian Firms Find It Increasingly Harder to Get Paid by China
Bloomberg News
Several major Russian commodity exporters say trade with China has become a gamble as direct payments made in yuan are increasingly being frozen or delayed after the US in June broadened the criteria for imposing sanctions. It has become very difficult or even impossible to make direct payments from China to Russia after the latest round of US sanctions, even when using yuan, said top executives at three commodities exporters. All three asked not to be identified as the information is sensitive.
/jlne.ws/3y6j7Td
Ukraine clears law on suspending debt payments, resumes formal bondholder talks
Yuliia Dysa, Olena Harmash and Libby George - Reuters
Ukraine's parliament passed a law on Thursday allowing the government to suspend foreign debt payments, just as it resumed formal talks with bondholders to restructure some $20 billion in debt. Ukraine, now into its 29th month of war with invading Russian forces, is in the middle of an unprecedented push to restructure its bond debts before a payment moratorium expires on August 1. "It is an important element of the restructuring that will allow savings of more than $10 billion on debt servicing on Eurobonds by the end of 2027," Roksolana Pidlasa, chair of the parliamentary budget committee, said on Facebook.
/jlne.ws/3yeqmIC
Ukraine rushes to create AI-enabled war drones
Max Hunder - Reuters
In Ukraine, a handful of startups are developing Artificial Intelligence (AI) systems to help fly a vast fleet of drones, taking warfare into uncharted territory as combatants race to gain a technological edge in battle. Ukraine hopes a rollout of AI-enabled drones across the front line will help it overcome increasing signal jamming by the Russians as well as enable unmanned aerial vehicles (UAVs) to work in larger groups. AI drone development in Ukraine is broadly split between visual systems helping identify targets and fly drones into them, terrain mapping for navigation, and more complex programmes enabling UAVs to operate in interconnected "swarms".
/jlne.ws/4d6Mgwa
European Leaders Cast Wary Eye to Trump's Tepid Ukraine Support; Security is top theme at European Political Community summit; More than 40 European leaders gather for EPC summit in UK
Andrea Palasciano, Arne Delfs, and Ellen Milligan - Bloomberg
The prospect of a second US presidency for Donald Trump, and what that means for the defense of Ukraine against Russian aggression is hanging over a major gathering of European leaders on the other side of the Atlantic. Trump - who's been at best lukewarm in his commitment to European defense - leads US President Joe Biden in polling ahead of November's US election, and did little to allay European concerns by naming JD Vance as his running mate. Vance told Bloomberg earlier this week that while Russia's war in Ukraine is "tragic," the US "doesn't have the interest to respond to every tragedy that exists in the world."
/jlne.ws/4d5SDzV
Ukraine Restarts Bondholder Talks on $20 Billion Debt Revamp; Debt talks taking place before debt freeze deal ends Aug. 1; Ukraine approves law allowing moratorium on debt payments
Jorgelina Do Rosario and Daryna Krasnolutska - Bloomberg
Ukraine and its international bondholders started a new round of official talks on restructuring more than $20 billion of debt as Kyiv is running out of time to reach an agreement or face the risk of a potential default. The east European nation, fighting against Russian aggression, is under pressure to agree a debt overhaul with its creditors as a freeze on payments - agreed two years ago after Moscow's full-scale invasion - is set to expire on Aug. 1.
/jlne.ws/3xTBPxo
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| Israel/Hamas Conflict | | News about the recent (October, 2023) conflict between Israel and Hamas | Israel Gives an Indication of the War's Toll on Hamas; The military said that it had killed or captured around 14,000 combatants in Gaza since the war's start but left considerable ambiguity about the figure.
Matthew Mpoke Bigg - The New York Times
Israel's military has said that it had killed or captured around 14,000 combatants in Gaza since the war there began more than nine months ago, an unverifiable and ambiguous number that gives a measure of Israel's assessment of its progress toward Prime Minister Benjamin Netanyahu's stated goal of destroying Hamas.
/jlne.ws/3ScXnvz
Israel pounds central Gaza, sends tanks into north of Rafah
Nidal Al-Mughrabi - Reuters
Israeli forces hit areas in the central Gaza Strip on Wednesday, killing at least nine Palestinians, according to health officials, while Israeli tanks carried out a limited advance further into Rafah in the south. Over the past 24 hours, Israeli strikes have killed at least 81 Palestinians and wounded 198, the Gaza health ministry said. The ministry does not distinguish between militants and civilians in its casualty count.
/jlne.ws/3YbqLpU
Israeli delegation arrives in Cairo for Gaza cease-fire talks
The Associated Press
An Israeli delegation has arrived in Egypt to press ahead with cease-fire talks, as Israel and Hamas consider the latest proposal. That's according to three Egyptian airport officials who did not provide further details. International mediators are pushing Israel and Hamas toward a phased deal that would halt the fighting and free about 120 hostages held by the militant group in Gaza. Talks between the sides were rattled over the weekend when Israel said it targeted Hamas' military commander in a massive strike. His status remains unclear.
/jlne.ws/3W2a912
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| Exchanges, OTC & Clearing | | Top news from exchanges, clearing, settlement and trade execution facilities | Nasdaq taps valantic to develop new Nasdaq Rates Trader interface; Beta testing for the new interface is expected to begin in February 2025; go-live is expected in October 2025.
Editors - The Trade
Nasdaq has selected financial services automation firm valantic FSA to develop a new interface for its Nordic and Baltic fixed income markets. Named Nasdaq Rates Trader, the new interface is aimed at enhancing the trading experience by offering access to Nasdaq's data and trading functionality as part of a "front-end and feature advanced" workspace.
/jlne.ws/4damZBz
TAIFEX to launch micro TAIEX futures to enhance market flexibility in Taiwan; Developments coincide with the rising index levels and evolving demands of the Taiwan market, according to TAIFEX.
Wesley Bray - The Trade
The Taiwan Futures Exchange (TAIFEX) will launch micro TAIEX futures (TMF) on 29 July, with the aim of providing traders with increased flexibility and accessibility in capital management. The addition to its product lineup addresses the rising index levels and evolving demands of the Taiwan market, according to TAIFEX.
/jlne.ws/4bOLJhm
New Product Summary: Initial Listing of Eight (8) Cross Rate Foreign Exchange (FX) Futures Contracts (Amend titles to include "Cross Rate") - Effective August 05, 2024
CME Group
Initial Listing of Eight (8) Cross Rate Foreign Exchange (FX) Futures Contracts (Amend titles to include "Cross Rate").
/jlne.ws/3WpgGED
Clearing Transformation Functionality, DELAYED to August 5th
CME Group
Please be advised that CME Clearing will delay the implementation of the Clearing Transformation functionality, most recently referenced in CH Advisory 24-091. The new Production Date for this change will now be for trade date Monday, August 5, 2024. Additionally, with this release, the results of Clearing Transformation will NOT be eligible for Post-Trade Processing (Give-Up, Averaging). There are plans to enable this functionality in the future, but will require some additional technical changes; which include a small change to the messaging specs. The updated specs for this subsequent change will be published ASAP, but the Production Date will be published once determined.
/jlne.ws/3S8ASIs
CME STP Migration for EBS Customers - December 31
Central Post Trade (CPT) TOF and FIX will be decommissioned on December 31.
CME Group
All EBS clients must migrate to CME STP solutions before the decommission. Both CME STP and CME STP FIX currently support EBS trades as well as BrokerTec on CME Globex, BrokerTec Stream, and CME Group futures and options.
/jlne.ws/4f8I5Sn
Eurex adds Ether to its crypto derivatives suite
Deutsche Borse Group
Eurex expands its crypto derivatives portfolio with the launch of FTSE Ethereum Index Futures and Options as of 12 August 2024. Following the launch of FTSE Bitcoin Index Futures and Options in 2023, this is another major milestone in Eurex's ambition to offer secure access to cryptocurrencies in a regulated market environment. Ethereum is the second largest cryptocurrency with a market capitalization of approximately USD 400 billion. There is significant trading and hedging demand from institutional and professional customers, as reflected in record trading volumes in derivatives and other investment products.
/jlne.ws/3WCMmGR
24 213 Probationary Authorised Dealer
LME
The undermentioned has been admitted as a probationary authorised Dealer in conformity with the LME Rulebook:- Mr Alfie Baker - CCBI Global Markets (UK) Ltd
/jlne.ws/3vimcfa
TAIFEX Unveils Micro TAIEX Futures to Elevate Market Flexibility as Taiwan Market Hits New Highs
TAIFEX
The Taiwan Futures Exchange (TAIFEX) is set to launch Micro TAIEX Futures (TMF) on July 29, 2024. This strategic addition to TAIFEX's product lineup aims to offer traders greater flexibility and accessibility in capital management, addressing the rising index levels and evolving demands of the Taiwan market.
/jlne.ws/3zPwXKg
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| Fintech | | A roundup of today's market tech news and a look at tomorrow's disruptors | ION Set to Close $1.5 Billion Deal for Italy's Prelios This Week; Pignataro's group bid for the asset manager last year; The deal has attracted the attention of Italian authorities
Daniele Lepido and Sonia Sirletti - Bloomberg
ION Group is set to complete the acquisition of asset manager Prelios SpA as soon as this week, following months of back-and-forth with Italian authorities on the deal. The fintech group's purchase of Prelios for EUR1.35 billion ($1.5 billion) could be signed already on Thursday, the people added. The closing is a win for London-based ION, a group controlled by Italian businessman Andrea Pignataro, which first bid for the asset management company in 2023.
/jlne.ws/4d3HHTy
KYAX Collaborates with ANNA and DTIF to Streamline Digital Asset Regulatory Reporting
KYAX
KYAX, a Digital Asset Financial Reporting tool, the Association of National Numbering Agencies (ANNA), a global member association seeking to foster standardization within the financial industry, and the Digital Token Identifier Foundation (DTIF) whose mandate is to increase transparency in the digital asset space by creating a core reference data set, are pleased to announce they have joined forces to expedite the implementation of the ISO 24165 Digital Token Identifier (DTI) and ISO 6166 International Securities Identification Number (ISIN) standards in the digital asset space.
/jlne.ws/3Ws95oK
Nvidia Backs Networking Software Startup Arrcus's Latest Round
Saritha Rai - Bloomberg
Networking software startup Arrcus Inc. raised $27 million from investors including Nvidia Corp., gaining funds to build out its platform that lets companies more effectively manage data traffic. Saudi Aramco's venture arm Prosperity7 Ventures, Hitachi Ventures, General Catalyst and others participated in the round, the San Jose, California-based startup said on Thursday. It has 50 customers including SoftBank Corp. and Target Corp., and said it plans use the capital to expand globally and improve its technology.
/jlne.ws/3zNJOfR
Goldman's Top Stock Analyst Is Waiting for AI Bubble to Burst; Covello casts doubt on hype behind an $16 trillion rally; He says costs, limited uses means it won't revolutionize world
Jeran Wittenstein - Bloomberg
Over three decades on Wall Street, Jim Covello has learned how painful it can be to bet against an inflating tech stock bubble. The market has a way of minting riches, month after month, even after it's clear the latest breakthroughs aren't playing out quite as expected. It happened with dot-com companies in the late 1990s and more recently with cryptocurrencies. And Covello, the head of equity research at Goldman Sachs Group Inc., says it'll likely happen with artificial intelligence, too, making it dangerous, if not outright foolish, to start wagering against the likes of Nvidia Corp.
/jlne.ws/3y6pvtF
TSMC Hikes Revenue Outlook to Reflect Heated AI Demand; Chipmaker sees capex at high end of outlook after profit beat; TSMC is one of the firms at the heart of an AI spending boom
Jane Lanhee Lee - Bloomberg
Taiwan Semiconductor Manufacturing Co. lifted projections for 2024 revenue growth after quarterly results beat estimates, reflecting its confidence in the longevity of the global AI spending boom. The chipmaker for Apple Inc. and Nvidia Corp. now expects sales to grow more than the maximum mid-20% it had guided toward previously. For the current quarter, TSMC forecasts revenue of as much as $23.2 billion, above analysts' projections. And it narrowed its forecast for capital spending to the high end of its outlook to $30 billion to $32 billion, from as low as $28 billion previously.
/jlne.ws/3WvDS4g
AI Startup Tied to Fake Biden Robocall Aims to Combat Misuse
Daniel Zuidijk - Bloomberg
ElevenLabs, a startup that uses artificial intelligence to clone people's voices, is working with an AI detection service to combat the rising threat of deepfakes during a crucial election year. The startup has partnered with Reality Defender, a US-based company that offers deepfake detection capabilities to governments, officials and enterprises. The partnership is part of ElevenLabs' broader efforts to boost safety on its platform, and follows concerns from researchers earlier this year that its technology was misused to create deepfake audio of US President Joe Biden.
/jlne.ws/3YcsBH5
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| Cybersecurity | | Top stories for cybersecurity | King's Speech: Security in the spotlight as government promises new efforts to lock down insecure IT supply chains
Solomon Klappholz - IT Pro
The new Labour government has promised fresh cybersecurity legislation aimed at minimizing supply chain risk and improving incident reporting. Among the 40 bills announced by King Charles III during the King's Speech this week, new cybersecurity legislation has received broad praise from industry stakeholders. The new Cyber Security and Resilience Bill will be introduced to expand the UK's current cyber regulations to cover more digital services and toughen up organizations' supply chains, particularly those in the public sector.
/jlne.ws/3Lw56kW
Cyvatar Announces Strategic Partnership with Zimperium to Expand Cybersecurity Portfolio; New Advanced Mobile Threat Defense (MTD) Service Protects Cyvatar Customers from Increased Mobile Security Threats
BusinessWire
Cyvatar, a leading provider of comprehensive cybersecurity solutions, announced today its strategic partnership with Zimperium, the global leader in mobile security to introduce a groundbreaking Mobile Threat Defense (MTD) service. This collaboration adds Zimperium's cutting-edge mobile threat defense technology to Cyvatar's robust portfolio. Cyvatar MTD service now offers comprehensive, real-time protection against mobile security threats, ensuring organizations stay secure in today's increasingly mobile-centric world.
/jlne.ws/3y0Tweq
Why top leadership must foster a security-conscious culture
David Nichols - SC Media
The digital landscape presents a double-edged sword for organizations. Technology unlocks unprecedented opportunities for growth, innovation, and efficiency. However, this interconnectedness also creates a vast attack surface, making organizations vulnerable to cyberattacks. Building a cyber-resilient organization goes beyond technical solutions such as firewalls and antivirus software. Rather, it hinges on the foundation of organizational culture.
/jlne.ws/4cMXvdz
When Cyberattacks Are Inevitable, Focus on Cyber Resilience
Keri Pearlson - Harvard Business Review
There's a common - but serious - mistake cybersecurity experts make: they focus all their resources on keeping malicious actors out of our system. It's an understandable misstep. Protecting ourselves from potential cyber breaches is a critical part of the job. Even so, it's impossible to be completely protected from every vulnerability. That's because the good guys must protect against every possible vulnerability, while the bad guys only need one small crack in a company's armor to get in.
/jlne.ws/4fbFB5K
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| Cryptocurrencies | | Top stories for cryptocurrencies | Bye-bye bitcoin, hello AI: Texas miners leave crypto for next new wave
MacKenzie Sigalos - CNBC
Just off of Interstate 20, in the heart of West Texas, is a town of 125,000 people called Abilene. Once a stopping point along a cross-country cattle trail in the days of the American Old West, the small outpost is now getting into the burgeoning artificial intelligence business. Houston-based tech company Lancium and Denver-based Crusoe Energy Systems announced on Thursday morning a multibillion-dollar deal to build a 200-megawatt data center just outside Abilene that is designed to "meet the unique needs of AI companies" - such as enabling advanced cloud computing for applications like medical research and aircraft design. It is the first phase of a larger 1.2-gigawatt build-out.
/jlne.ws/3Wddc6T
Settlement Speculation Pushes XRP to Front of Crypto Rally; SEC sued Ripple in 2020 for selling unregistered securities; Ripple has been active in supporting pro-crypto candidates
Muyao Shen - Bloomberg
A little-known cryptocurrency that is at the center of a key legal fight for the industry is leading the latest rally in digital assets amid speculation that the company behind it may soon reach a settlement with US regulators. XRP has jumped almost 40% in the past week to around 60 cents, while market bellwether Bitcoin is up around 12% during the same period. Cryptocurrencies have rallied in part this week on expectations that Donald Trump will be more amiable to the sector if he wins the US presidential election.
/jlne.ws/3Y7GO86
'It's a Bitcoin Play': Mark Cuban Says Silicon Valley's Embrace of Trump Revolves Around Crypto; Cuban: "You can't align the stars any better for a BTC price acceleration."
Nick Baker - Coindesk
Venture capitalists and other Silicon Valley figures have embraced Donald Trump's attempt to retake the U.S. presidency. Their rationale? To billionaire Mark Cuban, it's being driven by cryptocurrencies. "It's a bitcoin play," Cuban posted Wednesday on X. Trump as president "makes it easier to operate a crypto business because of the inevitable, and required, changes at the" U.S. Securities and Exchange Commission, he added.
/jlne.ws/4cOzbZ0
Bitcoin's 'OP_CAT' Possibilities Teased in StarkWare Test Project
Jamie Crawley - CoinDesk
Layer-2 developer StarkWare, the primary builder behind the Starknet network atop Ethereum, has offered a glimpse of what could be possible on the Bitcoin blockchain if a pending technical proposal known as OP_CAT were adopted. Working on a Bitcoin's testing environment known as Signet, and using OP_CAT, StarkWare says it demonstrated how zero-knowledge proofs - an increasingly popular type of cryptography that's used to compress data or prove the validity of statements without offering information that may compromise privacy - could be carried out on the oldest and original blockchain.
/jlne.ws/3W8ugLa
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| Politics | | An overview of politics as it relates to the financial markets | Trump's Biggest Volatility Risk? Taiwan; The GOP presidential nominee signals that he might not defend the island.
The Editorial Board - The Wall Street Journal
Democrats are still trying to shuffle President Biden off stage left, but American voters are now choosing between an obviously infirm incumbent or the volatility risks of Donald Trump. As if to remind everyone, Mr. Trump is casually signaling that the U.S. might not defend Taiwan from a Chinese assault. "I think, Taiwan should pay us for defense. You know, we're no different than an insurance company. Taiwan doesn't give us anything," Mr. Trump told Bloomberg Businessweek. He complained that Taiwan "took our chip business." Why "are we doing this?" Mr. Trump also offered a geography lesson. "Taiwan is 9,500 miles away" while it's "68 miles away from China."
/jlne.ws/3WtTlk7
Donald Trump signals he would not defend Taiwan from Chinese invasion
Rozina Sabur - The Telegraph
Donald Trump has signalled the US would not defend Taiwan from a Chinese invasion under his presidency - because the country had grown rich by "stealing" US microchip production. The Republican 2024 nominee said Taipei "should pay" Washington to support its defence, adding that the island nation was 9,500 miles away and "doesn't give us anything".
/jlne.ws/3W3I21E
How Peter Thiel and Silicon Valley funded the sudden rise of JD Vance; Donald Trump's VP pick was a venture capitalist who has been bankrolled in business and politics by billionaire investor
Tabby Kinder and George Hammond - Financial Times
The name of JD Vance's venture capital firm is a homage to fantasy author JRR Tolkien - and billionaire tech investor Peter Thiel. Co-founded by Vance in 2020, Narya Capital is a reference to one of the "rings of power" in The Lord of the Rings and a nod to Thiel's penchant for companies with Tolkien-inspired monikers. The PayPal co-founder's influence has marked Vance's career, seeding him millions of dollars to launch Narya, before funding a successful campaign to win a US Senate seat in 2022.
/jlne.ws/46cxGRM
J.D. Vance's Millions in Investments Include Crypto, Oil, and Tech
Joe Light - Barron's
If former President Donald Trump wins reelection, he will have power to set policies that affect the values of crypto, oil, and venture capital. His vice presidential pick, J.D. Vance, has financial interests in all three. Vance got a featured spot at the convention Wednesday evening. In 39-year-old Vance, Trump picked a young populist with connections to Silicon Valley rather than a traditional big-business conservative.
/jlne.ws/3ybdyTl
Kremlin says proposed 'European Defence Union' is sign of EU's militarisation
Reuters
The Kremlin said on Thursday that pledges by European Commission President Ursula von der Leyen to create "a true European Defence Union" if she won a second term spoke to the mood in Europe towards militarisation and confrontation. In a document setting out her programme ahead of a European Parliament vote on granting her another term, Von der Leyen said the effort would include flagship projects on air and cyber defence over the next five years.
/jlne.ws/3Y9ZyUO
Von der Leyen Reelected to EU Top Job in Push for Stability; Commission chief vows to keep climate, emissions targets; Platform centers on boosting competitiveness versus US, China
Jorge Valero and Lyubov Pronina - Bloomberg
Ursula von der Leyen won a second five-year term as president of the European Union executive's arm, marking a vote for stability at a time when several key European leaders are facing significant political challenges back home. The European Parliament voted Thursday in a secret ballot to approve her renomination as European Commission president with 401 in favor, clearing the threshold of 360 that she needed. She won the backing of Green lawmakers, who had opposed her first term, while the 24 lawmakers in Italian Prime Minister Giorgia Meloni's right-wing party voted against her, according to people briefed on the vote who were granted anonymity to discuss internal matters.
/jlne.ws/3ShARBR
Trump 2.0 Would Be a Shock to Europe's Ailing System; Berlin and Paris are bracing for a trans-Atlantic shock, but not doing enough about it.
Lionel Laurent - Bloomberg
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| Regulation & Enforcement | | Stories about regulation and the law. | Ex-Goldman Sachs Associate Gets 28 Months in Insider Trading Case
Chris Dolmetsch - Bloomberg
A former Goldman Sachs Group Inc. associate will spend 28 months behind bars after admitting to passing inside tips to friends while working at the investment bank and Blackstone Inc. Anthony Viggiano, 27, was sentenced on Wednesday by US District Judge Valerie Caproni in Manhattan. He pleaded guilty to a single count of securities fraud in January for tipping off two friends to at least seven transactions that he learned about while working at the two Wall Street firms.
/jlne.ws/3SfdVmN
***** Here is the Reuters version of this story.~JJL
SEC Awards More Than $37 Million to a Whistleblower
SEC
The Securities and Exchange Commission today announced an award of more than $37 million to a whistleblower who provided information not previously known to the SEC and which significantly contributed to a successful enforcement action. The whistleblower also met with Enforcement staff and identified potential witnesses and documents, which conserved staff time and resources.
/jlne.ws/4d9czSr
FINRA Appoints Julie Glynn and Tina Gubb as SVPs of Enforcement
FINRA
FINRA announced today that it has appointed Julie Glynn and Tina Gubb as Senior Vice Presidents of Enforcement. Gubb's appointment is effective July 22, while Glynn's appointment is effective in September. Both will report to Bill St. Louis, Executive Vice President and Head of Enforcement at FINRA. In the newly created roles, Glynn and Gubb will act as senior legal advisors to St. Louis, responsible for advising on high-impact investigations and disciplinary actions across the Enforcement department. Glynn and Gubb will also lead the Enforcement attorney teams and work across FINRA's regulatory operations to support the organization-wide execution of FINRA's mission of investor protection and market integrity.
/jlne.ws/4fbG5ZY
ASIC bans former directors of XTrade.AU Pty Ltd
ASIC
ASIC has banned former directors and responsible managers of XTrade.AU Pty Ltd (XTrade), Mr Shay Zakhaim and Mr Anthony Anderson, from carrying on of a financial services business, either as a director or responsible manager, for three and five years respectively. XTrade offered clients opportunities to trade in contracts for difference (CFDs) and foreign exchange contracts (FX contracts).
/jlne.ws/4bKwI05
Former NSW mortgage broker Aleksandra Frizzell permanently banned following fraud convictions
ASIC
ASIC has permanently banned former Sydney-based mortgage broker Aleksandra Frizzell following fraud convictions. Ms Frizzell was a mortgage broker, accredited with Beagle Finance Pty Ltd between 2013 and 2017 and Supra Financial Pty Ltd between 2017 and 2018. Between 2015 and 2019, Ms Frizzell dishonestly obtained funds from an employee, clients and people purchasing goods on Facebook Marketplace.
/jlne.ws/4d5S4WP
Understanding fairness in financial services
FMA
The majority of New Zealanders generally agree on what constitutes fairness in financial services, research commissioned by the Financial Markets Authority (FMA) - Te Mana Tatai Hokohoko - has found. The research centres on a consumer survey of approximately 3000 New Zealanders who answered a range of questions about fairness. Respondents were invited to assess 33 hypothetical scenarios that New Zealanders could have experienced with financial providers. Respondents evaluated how fair each scenario was on a scale. Of the 33 scenarios, 29 were written that described people experiencing potentially unfair treatment by a financial service provider. These were called 'unfair risk scenarios'. Four more scenarios without an unfair risk were included, called 'neutral scenarios', to provide a comparison.
/jlne.ws/4cIp33Z
FCA calls on firms to improve treatment of politically exposed persons (PEPs)
FCA
The FCA has told financial firms - including banks, payment firms and lenders - to do more to ensure parliamentarians, senior public servants and their families are not treated unfairly. Under legislation adopted by Parliament, financial firms are required to do extra checks on so-called politically exposed persons (PEPs). This follows global standards set by the international Financial Action Task Force and implemented by more than 200 jurisdictions. There have been concerns about how firms in the UK are meeting these requirements and so the FCA has reviewed how firms are treating PEPs.
/jlne.ws/3WuwrJp
MAS Commits up to S$100 Million to Support Quantum and Artificial Intelligence Capabilities in the Financial Sector
MAS
The Monetary Authority of Singapore (MAS) today announced that it will commit an additional S$100 million under the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0) [1] to support financial institutions in building capabilities in quantum and artificial intelligence (AI) technologies, as well as enable the advancement of quantum and AI related innovation and adoption in financial services.
/jlne.ws/3WsbnUP
Remarks by Mr Chia Der Jiun, Managing Director, MAS, at the MAS Annual Report 2023/2024 Media Conference on 18 July 2024
MAS
1. Good morning and thank you for joining us today for the release of the MAS Annual Report for Financial Year 2023/24. 2. I will be touching on key areas across central banking, developmental and regulatory.
/jlne.ws/4d9cRsv
Do not penalise politicians, UK regulator tells banks; FCA launched probe after Nigel Farage 'debanking' scandal
Akila Quinio and Josephine Cumbo - Financial Times
The UK's financial regulator has told banks to make sure politicians and their families are "not treated unfairly" after a review conducted in the wake of Nigel Farage's "debanking" scandal found some lenders were "getting the balance wrong". The Financial Conduct Authority said that "all firms could improve" the way they handle politically exposed persons (PEPs), a group of potentially higher-risk clients that can include politicians, senior civil servants and their relatives, as it published the findings of a widespread probe.
/jlne.ws/46cotsP
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| Investing & Trading | | Today's top stories from equities, indices and FICC (fixed income, currencies and commodities) | Trump Media Has Some Stock to Sell; Also single-private-stock funds, Carlos Watson and money buying happiness.
Matt Levine - Bloomberg Opinion
Obviously Trump Media & Technology Group Corp. should sell stock. It is a highly valued public company stapled to a teeny little operating business: Last quarter it had revenue of $770,500 from selling ads on its social media site, and its operating cash flow was negative $9.3 million.1 Its equity market capitalization is around $7 billion. People value the stock at $7 billion not because they project high future operating cash flows but because Trump Media has "Trump" in the name, is largely owned by Donald Trump, and represents a bet on his electoral fortunes and general newsworthiness. Those have gone up recently. Converting Trump's newsworthiness into money is, as far as I can tell, the point of Trump Media, and now is the time.
/jlne.ws/3SduJdI
Price of China's strategic germanium hits record high on possible state buying
Reuters
Prices of germanium, a strategic metal key to chipmaking, hit a record high on Wednesday in top producer China, driven by speculation of possible state buying, industry sources said. China supplies 60% of the world's germanium, which is used in applications such as fibre optic cables, solar cells and infrared technology. It imposed controls over exports of germanium and gallium products last August.
/jlne.ws/3W22tfe
Bearish Nvidia Option Trade Nets $6 Million in Day on Share Drop
Carly Wanna - Bloomberg
A trader who bet against Nvidia Corp. in the options market Tuesday appears to have made more than $6.5 million as shares of the AI darling slumped. Early Tuesday, 60,000 contracts of a $119/$115 put spread were bought for a total cost of about $1.23 million. The buyer was betting on shares dropping below $119 by Friday, while lowering their cost - and capping potential gains on a selloff - by selling the lower-strike option. For the trade to expire "in the money" - that is, worth something - shares would need to dip almost 6% from Tuesday's close.
/jlne.ws/4d9zxcr
London mining Spac plots spree in copper M&A after $300mn Turkey deal; Former Rusal executive Artem Volynets plans to roll up international assets of the vital metal
Harry Dempsey - Financial Times
A mining group led by a former executive at Russia's largest aluminium company is seeking to buy copper miners and establish a leading producer of the metal, after agreeing an inaugural $300mn deal for a Turkish mine. Artem Volynets, chief executive of ACG, who used to be chief of EN+ and head of strategy at Russia's Rusal, told the Financial Times that he plans to roll up copper mines across Africa and North and South America into his London-listed special purpose acquisition company. The intention is to reach up to 300,000 tonnes of annual production by 2027, more than 1 per cent of global annual demand. The ACG's Turkish deal and Volynets' comments come as a spot of bright news for the London Stock Exchange, which has experienced a hollowing out of medium-sized mining companies worth between £200mn and £5bn over the past decade.
/jlne.ws/4dagNtn
Soybeans Extend Drop on Tepid Demand and Good US Weather; Soybean futures touch almost four-year low in Chicago
Celia Bergin - Bloomberg
Soybeans extended a drop to an almost four-year low in Chicago amid tepid demand for US beans and good weather for crops there. Export sales for US soybeans are expected to total 510,000 tons in the week ending July 11, according to a Bloomberg survey of analysts. While that would be up from the previous week, it's well below last year's amount, and highlights the tough competition from Brazilian and Argentinian supplies. "An increase in US demand has yet to be seen," analysts at the Hightower Report said in a note. Meanwhile, the slump in prices has seen China "dramatically" increase purchases of Brazilian beans, they said.
/jlne.ws/4bR8GR4
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| Environmental, Social and Corporate Governance | | Stories about environmental, social and governance investing | UK must 'go much wider' with climate action, warn advisers
Attracta Mooney and Jim Pickard - Financial Times
The UK's 2030 target to cut greenhouse gas emissions is at risk unless the country can rapidly deploy renewables, ensure nearly all cars sold are electric and fit heat pumps in 10 per cent of homes, according to a report. The Labour government urgently needs to reduce emissions across the transport, building, industry and agriculture sectors in order to meet its decarbonisation goals, the Climate Change Committee said.
/jlne.ws/3SeoIgW
Chris Skidmore launches investment bank to catalyse net-zero growth
Sarah George - edie
Former UK Business and Energy Minister Chris Skidmore has launched a new global investment bank that will raise private funds to scale up companies offering the products and services that will deliver the net-zero transition.
/jlne.ws/3WrR7Tr
Baltic countries notify Russia and Belarus they will exit the Moscow-controlled electricity grid
Liudas Dapkus and Jari Tanner - Associated Press
The electricity grid operators of the three Baltic countries on Tuesday officially notified Russia and Belarus that they will exit a 2001 agreement that has kept Estonia, Latvia and Lithuania connected to an electricity transmission system controlled by Moscow. The Baltic countries have already stopped buying electricity from Russia. And in a plan announced last year as part of moves to sever ties with Moscow following its invasion of Ukraine, they will shift their grid connections next February to the main continental European energy network in a move to end reliance.
/jlne.ws/3xZ9k1h
Renewables in Italy Overtake Fossil Fuels for First Time
Alberto Brambilla - Bloomberg
Italy's power generation from renewables overtook fossil fuel sources in the first half of the year amid stronger hydropower activity, according to the national grid operator. Renewables accounted for 44% of Italy's electricity demand, according to a Terna statement, which is a record on a half-year basis. Hydropower generation jumped 65% to nearly 26 terawatt-hours, while output from fossil fuels dropped by 19%.
/jlne.ws/4bWYyGQ
US Public EV Chargers Set to Surpass Gas Stations in Eight Years; The US added about 700 new public fast-charging stations for electric cars in the second quarter, bringing the nationwide total to nearly 9,000.
Kyle Stock - Bloomberg
On April 16, piloting an electric vehicle through the north of North Dakota became far less fraught. That's when a new fast-charging station switched on at a Simonson Station Store gas station in Minot, close to a Red Wing boot shop. Zero-emission drivers around El Paso, Texas can also rest easier thanks to two new stations up the road in Deming, New Mexico. So can anyone heading down the Gulf Coast by Mobile, Alabama, where a new bank of chargers started pumping electrons May 2 in Robertsdale, down the street from Buster's Southern Pit BBQ.
/jlne.ws/3zN1sjX
How the West's 'absurd' bet on hydrogen imploded
Matt Oliver - The Telegraph
The Australian billionaire, best known for making his fortune in mining, underwent a Damascene conversion on climate change after having a near-death experience in 2016. Since then Forrest has vowed to turn his industrial empire, Fortescue, into a green energy beacon - chiefly by making big bets on green hydrogen.
/jlne.ws/3SenZMW
German Power Trades Near Three-Month Low on Renewables Surge
Eamon Farhat - Bloomberg
German year-ahead power traded near the lowest in three months as renewable energy is flooding the market and industrial demand is slow to recover. While the electrification of everything from transport to heavy industry will propel usage in the future, it's still some years away, according to BNP Paribas SA. That's weighing on longer-dated power contracts. "We expect renewable growth to continue to outpace the demand recovery," said James Huckstepp a strategist at BNP Paribas SA. "The whole electrification story, EVs, heat pumps, data centers, we believe it's going to happen, but it's not a 2024 or 2025 story. It's really a 2026 story."
/jlne.ws/4fc3pGH
Namibia Gets Ready to Become the World's Newest Oil Hotspot
Paul Burkhardt -Bloomberg
/jlne.ws/3LtjB8V
California's billion-dollar hydrogen hub project is approved - but not without controversy
Russ Mitchell - LA Times
/jlne.ws/3xTyL4m
Nigeria's Mega Refinery Priced Out of Local Crude, Dangote Says; Dangote is being offered supply at a $2 to $4-a-barrel premium; Regulator recently ordered firms to disclose monthly prices
Nduka Orjinmo and Bill Lehane - Bloomberg
/jlne.ws/3LsDugj
GIX trading platform the first green securities exchange to file with the SEC; If approved by the SEC, the Green Impact Exchange (GIX) is expected to begin operations in early 2025; founders previously served in senior positions at the New York Stock Exchange (NYSE).
Claudia Preece - The Trade
/jlne.ws/3Lud91n
John Deere ends support of 'social or cultural awareness' events, distances from inclusion efforts
Wyatte Grantham-Phillips and Claire Savage - Associated Press
/jlne.ws/46ctxgG
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| Banks, Brokers & Managed Funds | | The latest from banks, brokers, hedge funds and managed futures | Goldman Sells $5.5 Billion of Bonds in Post-Earnings Binge
Caleb Mutua - Bloomberg
Goldman Sachs Group Inc. and Wells Fargo & Co. joined rival JPMorgan Chase & Co. in the tapping the US investment-grade market after reporting second-quarter earnings. Goldman sold $5.5 billion of bonds in two parts, according to a person with knowledge of the matter. The longest portion of the offering, an 11-year security, yields 1.17 percentage point above Treasuries, after initial discussions of around 1.45 percentage point, said the person, who asked not to be identified as the details are private.
/jlne.ws/3zO4HHM
Morgan Stanley Sells $8 Billion of Bonds as Demand Soars
Caleb Mutua - Bloomberg
Morgan Stanley became the latest big Wall Street bank to tap the US investment-grade market Wednesday after reporting earnings, as strong investor demand helps lenders borrow at lower yields than would have been possible at the start of the month. The lender sold $8 billion of bonds in four parts, according to a person with knowledge of the matter. The longest portion of the offering, an 11-year security, yields 1.17 percentage point above Treasuries after initial discussions of around 1.4 percentage point, said the person, who asked not to be identified as the details are private.
/jlne.ws/3zM8cPb
Lloyds partners with Oaktree in £1bn push to fund buyout loans; The venture is the latest in a string of tie-ups as traditional banks try to find a place in the private credit industry
Eric Platt in New York and Akila Quinio in London - Financial Times
Lloyds Banking Group has partnered with credit investment shop Oaktree Capital Management to finance UK buyouts, as the bank works to get a foothold in the burgeoning private credit industry. Oaktree will provide Lloyds' clients loans of up to £175mn to fund private equity takeovers and help refinance upcoming debt maturities. The groups hope to deploy £1bn over the next three years, drawing on Oaktree's credit funds. Lloyds will contribute a portion of its own capital to finance the loans. The venture is the latest in a string of tie-ups as traditional banks attempt to figure out their place in the $1.7tn private credit industry, which has seen the likes of Ares, Blackstone and Blue Owl become go-to lenders for private equity firms and a growing number of blue-chip companies.
/jlne.ws/3Y7ooEw
Oaktree Inks £1 Billion Private Credit Tie-Up with Lloyds Bank
Aisha S Gani - Bloomberg
Oaktree Capital Management is partnering with Lloyds Banking Group Plc to provide the banking giant's private equity clients with loans to fund their buyouts, the latest sign that traditional lenders are trying to find creative ways to get into private credit. Oaktree will provide the bank's buyout fund customers with loans of as much as £175 million ($227 million) as part of the deal, according to a statement. The two are planning to deploy £1 billion in the coming years.
/jlne.ws/4bJeXhS
Wall Street Senses the Barbarians Are Finally at the Gates; After many false starts, bankers from Morgan Stanley to Goldman Sachs are betting the long-promised recovery in private-equity deal-making - and investment banking fees - might finally be near.
Paul J. Davies - Bloomberg Opinion
The barbarians are back at the gates. Morgan Stanley and Goldman Sachs Group Inc. are confident that their most important clients are about to get active after a long spell on the sidelines and help goose the long-awaited revival in investment banking fees. The private equity deal machine has been mostly jammed up for the past two years, leaving many investment bankers twiddling their thumbs while their bosses talked up green shoots that failed to flourish. There are plenty of potential road bumps ahead, but there's reason to put more weight on the better outlook now even compared with just three months ago: The wave of debt refinancing that has led banks' revenue recovery this year has also been helping to fix the prospects of many companies owned by private equity firms.
/jlne.ws/4bKCNcV
BlackRock Sells $2.5 Billion Bond to Fund Preqin Purchase
Josyana Joshua - Bloomberg
A unit of BlackRock Inc. sold $2.5 billion of US investment-grade bonds on Wednesday to help fund a portion of the firm's $3.2 billion acquisition of private-markets data business Preqin. BlackRock Funding Inc. priced notes in three parts, according to a person familiar with the matter. The longest portion of the deal matures in 30 years and yields one percentage point above Treasuries, the person said, asking not to be identified as the details are private, after initial talks in the area of 1.25 percentage point.
/jlne.ws/3WcGMcu
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| Work & Management | | Stories impacting work and more about management ideas, practices and trends. | Can we make work meetings more bearable?
Jane Wakefield - BBC
Work meetings can sometimes be incredibly powerful. Like the one Jaime Teevan, chief scientist at Microsoft, says she had a few years ago with her chief executive Satya Nadella, and Sam Altman the founder of leading AI firm OpenAI. It had such a visceral impact on Ms Teevan that afterwards she sat in her car and screamed, elated at the possibility of AI. "I have never done that before, but there was just too much emotion," she says. The meeting was a demonstration of the potential of OpenAI's now popular AI chatbot ChatGPT. And it left Ms Teevan convinced that AI could be on the verge of transforming many things, including meetings. "Historically computing has been quite good at helping make the drudgery more efficient," she says. "But having something that can help throw out a bunch of ideas, and be able to reflect on those, that really feels qualitatively different, and like a real opportunity."
/jlne.ws/3xSX8iD
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| Wellness Exchange | | An Exchange of Health and Wellness Information | Inquiry finds Britain was ill-prepared for COVID-19 pandemic and failed its citizens
Brian Kelley - Associated Press
The U.K. government was ill-prepared for the COVID-19 pandemic and serious errors in planning failed its citizens, an inquiry found Thursday. Retired judge Heather Hallett, who is leading the ongoing inquiry, said the government wrongly believed in 2019 that it was one of the best-prepared countries in the world for an outbreak and it anticipated the wrong pandemic - influenza.
/jlne.ws/4f2gQcp
Where to Invest in Health Trends; Five experts point to investment opportunities related to advancements being made in physical and mental health.
Claire Ballentine - Bloomberg
Money might not be able to buy good health, but it can definitely invest in it. There are huge breakthroughs being made in the science around physical and mental health, revolutionizing the way we think about our bodies and minds. To get a sense of the best investment opportunities, Bloomberg News spoke with five investment managers whose suggestions ranged from weight-loss drugs and neurological disease treatments to AI-fueled research and mental health apps.
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How Much Alcohol Can You Drink a Week and Still Be Healthy? Scientists are homing in on how much-or how little-you can consume without raising your risk for health problems
Sumathi Reddy - The Wall Street Journal
How much drinking is bad for you? Though more people are calling themselves sober-curious or are trying zero-proof replacements for alcohol, drinking is a regular part of social life for most of us. A coupe of champagne can add fun to a celebration. A cocktail can take the edge off a tough day. And a cold beer can liven up a sports game. Yet scientists' warnings about the potential health problems of even small amounts of alcohol are growing more dire. For moderate drinkers, it can be hard to know what's actually OK to consume: Is two a day that much worse than one? Are two drinks over a week the same as two in a day?
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Covid Cases Are Rising Again, but Your Chances of Long-Term Complications Are Lower; The threat of lingering health problems has subsided, though it hasn't disappeared
Sumathi Reddy - The Wall Street Journal
A summer Covid wave is hitting the country, but there's one consolation: Your chances of developing long Covid have fallen since the start of the pandemic. That's the finding from a new study in the New England Journal of Medicine. It concluded that about 10% of people infected with the virus's original strain developed long Covid. By contrast, the risk of developing long Covid dropped to 3.5% with the virus's Omicron variant among vaccinated people. For the unvaccinated, the risk was 7.7.%.
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| Regions | | Stories of local interest from the Americas, EMEA and Asia-Pacific regions | Iron Ore Majors Ramp Up Supply Even as China Faces Challenges
Paul-Alain Hunt - Bloomberg
The world's biggest iron ore producers are hurling plenty of dirt, adding tons of the steel-making commodity to the seaborne market even as top user China battles a demand-sapping property crisis. BHP Group Ltd. reported record production for the financial year to June on Wednesday, while second-quarter output at Brazilian rival Vale SA topped expectations, reinforcing its confidence in achieving the upper end of full-year guidance. On Tuesday, Rio Tinto Group said quarterly supply rose, and reaffirmed that a giant new African mine would start output next year.
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China Probe of EU Pork Trade Takes Aim at Bloc's Top Sellers
Hallie Gu and Celia Bergin - Bloomberg
China has put three companies from the European Union at the center of its anti-dumping investigation into pork products from the bloc. Beijing launched the probe into EU pork products last month in a tit-for-tat trade war with the region, after the bilateral relationship hit fresh lows in recent months and Brussels said it would impose tariffs on electric vehicles made in China.
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Hong Kongers Fleeing to UK Leave $3.8 Billion Trapped Behind; The city's most recent security law is prompting thousands to leave, but their retirement savings are caught in a geopolitical battle.
Claire Ballentine - Bloomberg
As China tightens its control over Hong Kong, a wave of residents are permanently relocating to the UK and leaving their retirement money trapped behind in the Asian financial hub. Normally, anyone leaving Hong Kong on a long-term basis is entitled access to savings they have accrued in Hong Kong's compulsory pension system, the Mandatory Provident Fund. But Hong Kongers who emigrate using a British National (Overseas) passport can't use that to withdraw their money before the retirement age of 65, the Mandatory Provident Fund Schemes Authority said.
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Taiwan targets North Korean oil smuggling; Taipei seeks to 'close loopholes' in terrorism financing law that undermined UN sanctions
Kathrin Hille - Financial Times
Taiwan is seeking to crack down on rampant oil smuggling out of its ports by toughening measures against terrorist financing, in an attempt to combat a trade that has undermined international sanctions against North Korea for years. Draft amendments to the Counter-Terrorism Financing Act, set to be published this month, would criminalise any transaction with a citizen or entity from a country that is subject to UN sanctions, as well as any transaction conducted in such a country's territory, according to senior government officials and prosecutors.
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Nigeria Wants Half of the Windfall Forex Profits at Banks; Tinubu makes request to lawmakers, who are expected to agree; Bank stocks slip on Lagos bourse as investors mull impact
Emele Onu - Bloomberg
Nigerian President Bola Tinubu plans to slap a one-time 50% tax on windfall profits booked by banks on massive currency gains after the naira was devalued last year. The move, detailed in a letter to lawmakers on Wednesday, comes as Nigeria tries to prop up public finances amid a cost-of-living crisis and follows similar efforts in Europe to tap bank earnings padded by high interest rates. Nigerian bank stocks fell.
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