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☆ EU agrees law preventing import of goods linked to deforestation
▼ + stars: | 2022-12-06 | by ( Kate Abnett | ) www.reuters.com time to read: +3 min

BRUSSELS, Dec 6 (Reuters) - The European Union agreed on Tuesday on a new law to prevent companies from selling into the EU market coffee, beef, soy and other commodities linked to deforestation around the world. Negotiators from EU countries and the European Parliament struck the deal on the law early on Tuesday. Failure to comply could result in fines of up to 4% of a company's turnover in an EU member state. EU countries and the European parliament must now formally approve the legislation. The EU said it would work with affected countries to build up their capacity to implement the rules.

☆ Goldman Sachs plans to spend millions on crypto-related investments after FTX's downfall, report says
▼ + stars: | 2022-12-06 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +3 min

Goldman Sachs plans on spending tens of millions on crypto company investments, Reuters reported. "We have seen more client interest since the demise of FTX," Goldman's head of digital assets said. In fact, the Wall Street giant plans to spend "tens of millions" on investments in crypto companies even after FTX's implosion, Reuters reported on Tuesday. Amid continued layoffs in crypto, Goldman sees the time as a recruitment opportunity to snatch up talent in the industry. Goldman Sachs did not immediately respond to Insider's request for comment.

Bankman-Fried could face a host of potential charges – civil and criminal – as well as private lawsuits from millions of FTX creditors, legal experts told CNBC. There are three different, possibly simultaneous legal threats that Bankman-Fried faces in the United States alone, Levin told CNBC. He told CNBC, "prosecutors would have to prove beyond a reasonable doubt that Bankman-Fried or his associates committed criminal fraud." (Carter was not an FTX investor, and told CNBC that his fund passed on early FTX rounds.) "People should not jump to the conclusion that something is not happening just because it has not been publicly disclosed," Levin told CNBC.

The answer is simple, according to more than a dozen Washington insiders, FTX employees, and crypto industry observers who spoke with Insider. I don't think anyone believed that he was going to fund candidates who were, quote unquote, committed to ending pandemics who were also hostile to the crypto industry." Alex Wong/Getty ImagesRebuffed by the SEC, Bankman-Fried turned his attention to Congress. "It's not that he was welcoming regulation," says the senior figure in the crypto industry who attended meetings with Bankman-Fried. But while Bankman-Fried was busy wooing Washington, FTX was about to become Exhibit A in the case for more effective oversight of the crypto industry.

☆ Saudi Exchange launches market-making framework to boost liquidity
▼ + stars: | 2022-12-04 | by ( ) www.reuters.com time to read: +2 min

DUBAI, Dec 4 (Reuters) - Saudi Arabia's stock exchange said on Sunday it was launching a market-making framework for its stock and derivatives markets to help ensure liquidity and raise price-determination efficiency. Entities must be exchange members, derivatives exchange members or their clients to be market makers. "Market Makers have to ensure the availability of liquidity for a listed security by providing continuous quotes throughout market open session," the Saudi Exchange, also known as Tadawul, said. "The Saudi Exchange will monitor compliance with Market Maker obligations, and will provide incentives to the Market Maker after obligations are met." As of October, Tadawul was the world's ninth largest exchange by market capitalisation of listed companies at $2.86 trillion, just ahead of the London Stock Exchange, according to Statista.

Billionaire money manager Bill Ackman went public last week with his wager that the days of the Hong Kong dollar's 39-year-old peg to the U.S. dollar are numbered. "For me, the Hong Kong dollar peg is like a delayed, or lagging bet against China," said Diego Parrilla, who runs Quadriga Igneo, a $240 million fund designed to profit from market turmoil. The Hong Kong dollar has been pegged in a tight band between 7.75 and 7.85 per greenback for nearly four decades. In the short-term, the market is moving against this style of trade as local interest rates and the Hong Kong dollar go up. "The far forwards market still prices in higher U.S. rates than Hong Kong rates," said Mukesh Dave, founder and CIO at Aravali Asset Management in Singapore, which in theory ought to contain gains in the Hong Kong dollar.

☆ FTX's LedgerX attracts interest from Blockchain.com, Gemini- Bloomberg
▼ + stars: | 2022-12-03 | by ( ) www.reuters.com time to read: +1 min

Dec 2 (Reuters) - FTX's digital currency futures and clearinghouse LedgerX is up for sale and has attracted interest from crypto firms including Blockchain.com, Gemini, Bitpanda and Kalshi, Bloomberg reported on Friday, citing people familiar with the matter. There could be over half a dozen other potential buyers for the crypto derivatives exchange, the people told Bloomberg, adding that some of the interested parties have signed non-disclosure agreements. Blockchain.com, Gemini and Bitpanda did not immediately respond to Reuters' request for comment, while Kalshi could not be reached for comment. FTX US acquired it last year to expand into crypto futures and options trading. Reporting by Jyoti Narayan in Bengaluru; Editing by Sandra Maler and Cynthia OstermanOur Standards: The Thomson Reuters Trust Principles.

John Ray, chief executive officer of FTX Cryptocurrency Derivatives Exchange, arrives at bankruptcy court in Wilmington, Delaware, US, on Tuesday, Nov. 22, 2022. It could be one way for the DOJ to gather evidence of alleged fraud. In a filing in Delaware federal bankruptcy court, Andrew Vara, a U.S. bankruptcy trustee, told the court that the allegations of corporate misconduct and complete failure merited an immediate and speedy examination of the events leading up to FTX's stunning collapse three weeks ago. It's not unusual to appoint a bankruptcy examiner. There was one to oversee the crypto bankruptcy process of Celsius Network, for example.

☆ Three things crypto investors need to know in a post-FTX world, according to financial advisors
▼ + stars: | 2022-12-02 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +7 min

While the dramatic story of the firm's failure isn't over yet, it's a post-FTX era in crypto world, and the biggest takeaways for investors are already clear, according to financial advisors. "Investors need to differentiate between blockchain technology and exchanges," said Daren Blonski, managing principal at Sonoma Wealth Advisors. Here's what advisors say about it: Whatever you do, don't leave your crypto on exchanges There's a cutesy mantra in crypto: "Not your keys, not your coins." But as crypto becomes more popular and centralized companies provide easy onramps, advisors agree: it's time investors learn to control their funds. "It's on advisors to understand what happened before rendering some sort of judgment about it," said Adam Blumberg, cofounder at Interaxis, a crypto education and training company for financial advisors.

☆ Crypto trading venues don't follow standards in securities and derivatives markets: Research fellow
▼ + stars: | 2022-12-02 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCrypto trading venues don't follow standards in securities and derivatives markets: Research fellowTimothy Massad, research fellow at the Harvard Kennedy School of Government and former chair of the Commodity Futures Trading Commission, discusses the need for better regulation in the cryptocurrency industry.

☆ We're now turning quite bearish, says Cantor Fitzgerald's Eric Johnston
▼ + stars: | 2022-12-02 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe're now turning quite bearish, says Cantor Fitzgerald's Eric JohnstonEric Johnston, head of equity derivatives and cross asset at Cantor Fitzgerald, joins 'Closing Bell: Overtime' to discuss today's jobs report and whether the stronger-than-expected number has dashed any hopes for a year-end rally.

☆ Sam Bankman-Fried ‘Wasn’t Even Trying’ to Manage Risk at FTX, He Says
▼ + stars: | 2022-12-01 | by ( Richard Vanderford | ) www.wsj.com time to read: +5 min

“I wasn’t even trying, like, I wasn’t spending any time or effort trying to manage risk on FTX,” Mr. Bankman-Fried said in an interview with George Stephanopoulos of ABC News that was broadcast Thursday on “Good Morning America.”“I don’t know what to say,” he said. A lawyer for Mr. Bankman-Fried didn’t respond to a request for comment. Risk issues weren’t seen as a “core business driver” at FTX, Mr. Bankman-Fried said in Thursday’s interview, adding that he did a “pretty incomplete job” at oversight. Mr. Stephanopoulos questioned Mr. Bankman-Fried about speculation that he might ultimately spend time in prison in connection with the problems at FTX and Alameda. Mr. Bankman-Fried said that a lot of things worry him right now, but that he would let regulatory and legal processes play out.

☆ U.S. CFTC chair to be questioned over FTX collapse by lawmakers
▼ + stars: | 2022-12-01 | by ( Hannah Lang | ) www.reuters.com time to read: +3 min

The hearing, entitled "Lessons Learned From the FTX Collapse, and the Need for Congressional Action", will take place at 10am Eastern Time (1500 GMT). The committee, which oversees the CFTC, could also press Behnam on meetings between the commodities regulator and FTX staff, including founder Sam Bankman-Fried. The CFTC had “many meetings” with FTX over its application to directly clear customer trades, Behnam said Monday at a Financial Times event. Offices for Sen. Debbie Stabenow, the Democratic chair of the Senate Agriculture Committee, along with its Republican ranking member Sen. John Boozman did not immediately respond to a request for comment. Many Senate Agriculture Committee members have previously agreed with Behnam that the CFTC should take on a larger role.

☆ EU, regulators see no need for radical change in energy derivatives
▼ + stars: | 2022-12-01 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, Dec 1 (Reuters) - European Union officials and regulators on Thursday played down the need for radical intervention in gas markets after prices rocketed this year in the wake of Russia's invasion of Ukraine. Gas prices rose so high and fast that governments had to help energy firms meet higher collateral calls on their derivatives contracts, prompting some calls for change. The EU has proposed to capping gas prices, but only if they hit certain levels over many days. Hanzo van Beusekom, executive board member at AFM, the Dutch body which regulates the gas derivatives market, said prices will only fall when the supply of alternative gas increases and demand eases. Next week, the European Commission -- the EU's executive -- could propose that clearing houses hold a separate default fund for commodity derivatives.

☆ Sam Bankman-Fried took plenty of blame for FTX's downfall, but denied fraudulent behavior
▼ + stars: | 2022-12-01 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +6 min

And while I've got you here, it's time to start thinking about gifts with the holidays season in full swing. Do you know what's an informative, funny gift that has a long shelf life and, most important of all, is free? FTX Cryptocurrency exchange CEO Sam Bankman-Fried at a hearing on Capitol Hill on May 12, 2022. But the main attraction at The New York Times DealBook Summit on Wednesday was Sam Bankman-Fried. And frankly conflict of interest risk," SBF said.

☆ Former FTX CEO Sam Bankman-Fried met with top officials at the CFTC more than 10 times over the past 14 months, says chairman Rostin Behnam
▼ + stars: | 2022-12-01 | by ( Chelsey Cox | ) www.cnbc.com time to read: +3 min

WASHINGTON — The founder and former CEO of failed cryptocurrency exchange Sam Bankman-Fried met with high-level officials at the Commodity Futures Trading Commission more than 10 times over the past 14 months, including with CFTC Chairman Rostin Behnam. The proposed change was still pending approval by the time FTX filed for bankruptcy earlier this month. Over the past 14 months, we met 10 times in the CFTC office at their request all in relation to this (derivatives clearing organization); this clearinghouse application," Behnam told committee chair Sen. Debbie Stabenow, D-Mich. Later in the hearing, Behnam told Sen. Tommy Tuberville, R-Ala., that emails were also exchanged between the parties. And I felt I needed to be engaged as the chairman of the agency that met directly with FTX and Mr.

☆ Hong Kong sees IPO slowdown reversing; eyes international issuers
▼ + stars: | 2022-11-30 | by ( Sumeet Chatterjee | ) www.reuters.com time to read: +3 min

China's economic slowdown, a sweeping regulatory crackdown that has tightened scrutiny over companies' fundraising outside mainland China and geopolitical tensions have all resulted in a bleak year for new listings in Hong Kong. "In other words, we will make ourselves much more diversified (with) many more international companies and that will be our strategy." International investors account for about 42% of investments in Hong Kong's equity market, and that share is "a lot higher" in the derivatives market, Cha said. Years of strict COVID restrictions have also badly hit Hong Kong's economy, but the city has lifted most of its curbs in the last couple of months. "So for us, there was, like the rest of Hong Kong, a higher attrition rate about 12 months ago, and that has come down now."

☆ U.S. crypto broker Genesis says it is working to avoid bankruptcy filing
▼ + stars: | 2022-11-30 | by ( ) www.reuters.com time to read: +2 min

Nov 29 (Reuters) - U.S. cryptocurrency brokerage Genesis said it was seeking to avoid bankruptcy after Bloomberg news reported on Tuesday that creditors to the firm are organizing with restructuring lawyers to prevent insolvency. "Our goal is to resolve the current situation in the lending business without the need for any bankruptcy filing," a Genesis spokesperson said. Genesis has hired investment bank Moelis & Company "to evaluate the best possible asset preservation strategy and effectuate a roadmap," the firm said in the letter. The crypto lending arm of U.S. digital asset broker Genesis Trading suspended customer redemptions earlier this month, citing the sudden failure of FTX, where its derivatives business has approximately $175 million in locked funds, the company had said. Venture capital company Digital Currency Group, which owns Genesis Trading and cryptocurrency asset manager Grayscale, owes $575 million to Genesis' crypto lending arm, Digital Currency Chief Executive Barry Silbert told shareholders this month.

☆ We got an exclusive look at the 10-slide pitch deck crypto market making startup Keyrock used to raise $72 million in a round backed by Ripple
▼ + stars: | 2022-11-30 | by ( Callum Burroughs | ) www.businessinsider.com time to read: +3 min

Brussels-based crypto market maker Keyrock has raised $72 million in new funding. The startup, founded in 2017, has brought in funding from crypto settlement platform Ripple. Keyrock wants to double the size of its team despite the downturn in the wider crypto market. Keyrock offers two sides of a trade – in this case digital assets – and acts as an intermediary between the bid (purchase) price and the ask (sale price). The funding comes from crypto settlement platform Ripple, SIX Fintech Ventures, and Middlegame Ventures.

☆ One of the only solvent members of Sam Bankman-Fried's fallen crypto empire is contributing $175 million to FTX bankruptcy proceedings, report says
▼ + stars: | 2022-11-30 | by ( Brian Evans | ) www.businessinsider.com time to read: +2 min

LedgerX is preparing to make $175 million available to FTX's bankruptcy proceedings, sources told Bloomberg. The company is one of the few solvent members of Sam Bankman-Fried's crypto empire. FTX acquired LedgerX in September 2021 for an undisclosed amount and then renamed it FTX US Derivatives. The $175 million to be transferred initially had been set aside as part of a $250 million fund that was meant for a bid to garner regulatory approval to clear derivatives trading. But FTX US Derivatives withdrew its application with the Commodity Futures Trading Commission as FTX filed for bankruptcy on November 11.

☆ Sam Bankman-Fried says he 'didn't ever try to commit fraud'
▼ + stars: | 2022-11-30 | by ( ) www.reuters.com time to read: +4 min

"I didn't ever try to commit fraud," Bankman-Fried said in the hour-long interview, adding that he doesn't personally think he has any criminal liability. The liquidity crunch at FTX came after Bankman-Fried secretly moved $10 billion of FTX customer funds to Alameda Research, Reuters reported, citing two people familiar with the matter. At least $1 billion in customer funds had vanished, the people said. Bankman-Fried told Reuters in November the company did not "secretly transfer" but rather misread its "confusing internal labeling." Bankman-Fried said he was speaking from the Bahamas and that the interview was against the advice of his lawyers.

LONDON, Nov 29 (Reuters) - Britain will change its rulebook to allow banks to take more risks in order to keep the City of London a leading global financial centre, a government minister said on Tuesday. Next week the EU will set out a new law to force banks in the bloc to shift some of their euro derivatives clearing from London to Frankfurt. "The overall thrust of things is to allow more risk... You get reward from taking risks, you shouldn't be risk off, we just need to manage that in an appropriate way," Griffith told a Financial Times event. "There is nervousness about the UK overall," Nunn said, referring to the period of political instability and concern over the nation's finances. Alison Harding-Jones, head of EMEA M&A at US bank Citi, told the event that Britain remained a strong place and open for business.

☆ Hong Kong’s Stock Market Struggles to Find Shelter From the Storm
▼ + stars: | 2022-11-28 | by ( Jing Yang | ) www.wsj.com time to read: 1 min

Hong Kong is the only major exchange in the world that closes for bad weather. When Hong Kong hosted a summit for some of Wall Street’s top executives in early November, its aim was to show the city was open to the world. In a case of bad timing, its financial markets were forced to close early that day. The city’s weather observatory issued a Typhoon No. 8 signal a little before 2 p.m. on Nov. 2, causing its exchange to suspend trading in stocks and derivatives for the rest of the day.

☆ Wall St set to open lower on China's anti-lockdown protests; Apple slips
▼ + stars: | 2022-11-28 | by ( Ankika Biswas | ) www.reuters.com time to read: +3 min

As China's strict zero-COVID policy aimed at stamping out COVID-19 with lockdowns and quarantines has become a lightning rod for frustrations, protests erupted over the weekend as a show of solidarity with rare displays of defiance. Although there were no signs of new protests in Beijing or Shanghai on Monday, the curbs so far have led to concerns over China's economic growth and its trickle-down effect on global companies. ET, Dow e-minis were down 216 points, or 0.63%, S&P 500 e-minis were down 33.75 points, or 0.84%, and Nasdaq 100 e-minis were down 99 points, or 0.84%. On Friday, the Nasdaq closed lower, weighed down by Apple in a subdued holiday-shortened trading session for Wall Street. Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Editing by Savio D'Souza and Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

☆ EU sets out plans to shift derivatives clearing from London to Frankfurt
▼ + stars: | 2022-11-28 | by ( Huw Jones | ) www.reuters.com time to read: +4 min

The loss of clearing in contract worth trillions of euros would be a further knock to the City as it faces new competition from EU financial centres like Paris and Frankfurt, alongside longstanding rivals such as New York and Singapore. Global banks have warned Brussels they could clear contracts in the United States if the EU is too heavy-handed. The commission is due to publish the draft law on Dec. 7, with the European Parliament and EU states having the final say. Global banks have warned Brussels that heavy, mandatory action forcing them to shift euro derivatives clearing out of London would backfire on EU banks, who need access to global liquidity pools in London, and could send clearing activity to the United States. The draft law tentatively proposes requiring EU clearers of commodity derivatives to hold a standalone default fund for that particular asset.

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