The Securities Commission Malaysia (SC) has commenced the second cohort of the investED Leadership Programme, an SC-led initiative to help ensure a sustainable talent pipeline for the capital market. Launched by Prime Minister Dato’ Seri Anwar Ibrahim in June 2023, the flagship graduate programme is also designed to help enhance the employability of local graduates.   The initiative is the first ever such tie-up between the SC, the Ministry of Finance, the Ministry of Higher Education, the capital market industry and universities. investED is opened to all Malaysian graduates from all disciplines. For the second cohort, the investED Leadership Programme offered placements to 268 trainees. On 1 August 2024, 197 trainees began a one-month comprehensive classroom training at the Asia School of Business in Kuala Lumpur. This will be followed by a sixmonth on-the-job experience with leading industry partners, beginning 1 September 2024. The first cohort of 169 candidates graduated in February this year after completing a sixmonth job placement with 53 capital market partner companies. More than 65% of them were offered jobs with investED's partners. This year, the investED programme has roped in a wider array of partner companies. They include investment banks, stockbroking firms, fund management companies, equity crowdfunding platforms, and advisory services. So far, 50 partner firms have agreed to place the second cohort’s trainees. Host companies with the highest placement offered include the SC, Kenanga Investment Bank Berhad, Moomoo Securities Sdn Bhd, Hong Leong Group, Affin Hwang Investment Bank and Maybank. SC Chairman Dato’ Mohammad Faiz Azmi said the collaboration with the various companies will provide valuable exposure to different aspects of the industry, offering trainees a well-rounded experience. Since its inception, investED has also engaged 77,185 university students via eight career fairs and 36 career talks nationwide. It plans to engage more students, universities and partner firms this year. The programme is aimed at improving the capital market knowledge of 9,000 university students and provide up to 600 jobs in the capital market industry between 2023 and 2025. For more information on investED programmes, visit www.invested.my.

The Financial advice update is a round-up of regulatory developments and issues affecting financial advice. It covers all areas of financial advice regulation and includes a broad range of content relevant to Australian financial services (AFS) licensees who are advice licensees and financial advisers. The topics of this update are: maintaining accurate records on the financial advisers register assessing adviser qualifications ASIC’s review of cold calling for superannuation switching business models cyber security – third-party exposure financial adviser registration Report 779 Superannuation and choice products: What focus is there on performance? provisional relevant providers, and keeping up to date with financial advice news.   Maintaining accurate records on the financial advisers register AFS licensees are reminded to check that the information about their financial advisers on the financial advisers register is correct. AFS licensees should pay particular attention to their adviser’s approved qualification(s), ability to provide tax (financial) advice services, business address and telephone number. Any incorrect or out-of-date information must be rectified by lodging a ‘maintain’ transaction on ASIC Connect. ASIC recently identified errors and inconsistencies on the financial advisers register, including in relation to records of approved degrees and qualifications: see 24-142MR ASIC urges AFS licensees to correct records on the financial advisers register (1 July 2024). Common errors include: failure to record the degrees accurately in line with the Corporations (Relevant Providers Degrees, Qualifications and Courses Standard) Determination 2021 (Determination) recording degrees that are not approved degrees, but are professional designations (e.g. ‘Certified Financial Planner’) recording degrees that are not approved degrees, but are bridging courses (which may be listed in the Determination but must be coupled with another qualification to meet the requirements of the professional standard), and recording qualifications that are not approved qualifications under the Determination (e.g. the Financial Adviser Exam, Australian Qualifications Framework 1–5 qualifications, and training or qualifications listed in Regulatory Guide 146 Licensing: Training of financial product advisers (RG 146)).   It is a serious offence to knowingly provide false or misleading information to ASIC or to fail to take reasonable steps to ensure that the information provided to ASIC is true and correct. It is also an offence to fail to update the financial advisers register within 30 business days of a financial adviser’s details changing. ASIC will shortly be commencing a compliance program to ensure that the information recorded on the financial advisers register about approved qualifications is correct and take action where necessary. Assessing adviser qualifications If you are an advice licensee, among other things, you must ensure your relevant providers (i.e. advisers who are authorised to provide personal advice to retail clients in relation to relevant financial products) comply with the ‘qualifications standard’ in section 921B(2) of the Corporations Act 2001 (Corporations Act) before authorising them, even if they have been previously authorised by another advice licensee. Financial advisers who are existing providers have until 1 January 2026 to meet the qualifications standard. For more information, see the quick reference guide on the ASIC website. Generally, an existing provider who meets the criteria for an experienced provider can rely on the experienced provider pathway to meet the qualifications standard and the professional year standard without needing to undertake further education and training. For more information on the experienced provider pathway, see Information Sheet 281 FAQs: Relevant providers – Accessing the experienced provider pathway (INFO 281). Under section 921B(2) of the Corporations Act, a person who is, or is to be, a relevant provider must have completed a bachelor or higher degree, or equivalent qualification, approved by the Minister. This applies to both existing providers and new financial advisers, as well as advisers with foreign qualifications. For a list of approved degrees and equivalent qualifications see the Determination. Assessing your advisers’ qualifications against the Determination To assess whether your adviser(s) has completed an approved bachelor or higher degree, or equivalent qualification, under the Determination, see the guidance for AFS licensees to check qualifications on the Qualification, exam and professional development page of the ASIC website. As an AFS licensee, you must ensure that the qualifications exactly match those listed in the Determination. If a domestic qualification has been completed in accordance with Schedule 1 of the Determination, but does not satisfy the prescribed conditions (e.g. unit codes or names do not match or different commencement dates), then an application can be made to Treasury to assess whether the qualification satisfies section 921B(2) of the Corporations Act: see Domestic qualifications: Criteria for assessment on the Treasury website. If an adviser has foreign qualifications, an application can also be made to Treasury to assess whether these qualifications are equivalent to an Australian bachelor’s or higher degree: see Foreign qualifications: Criteria for assessment on the Treasury website. If Treasury establishes that an adviser has completed an approved degree or qualification, the relevant provider’s authorising AFS licensee must record this on the financial advisers register as an approved degree or qualification. This can be completed during the appointment process or by submitting a maintenance transaction if the adviser has already been appointed by the AFS licensee. ASIC’s review of cold calling for superannuation switching business models In our 2023–27 Corporate Plan, ASIC announced a cross-sector project focused on deterring cold calling for superannuation switching business models. Our review identified that some cold calling businesses are using high-pressure sales tactics to induce consumers into taking unnecessary and inappropriate superannuation switching advice, leading to poor outcomes for clients. These adverse outcomes range from superannuation erosion due to high fees and charges, to the risk of a reduced superannuation balance due to inappropriate investment in high-risk and/or low-quality superannuation products. Some of the cold calling operators – which make unsolicited calls to consumers after obtaining their personal information from third-party data brokers or by using online click-bait – have lead-generation and referral arrangements with a small subset of financial advisers who typically recommend consumers switch to super products that charge significant fees. ASIC has observed considerable volumes of superannuation fund movement as a result of cold calling conduct, including inflow into platforms, high-risk property investments and significant payments to cold calling operators. ASIC also observed some cold calling businesses bypassing data brokers by posting click-bait advertisements on social media platforms like Facebook and Instagram. These advertisements often promote superannuation comparison calculators that give consumers the impression their existing superannuation fund is underperforming. ASIC identified several areas of concern and is reminding advice licensees and financial advisers of their respective obligations to act in the best interests of consumers when providing financial services. Advice licensees should ensure they have in place adequate monitoring and supervision arrangements to detect concerning conduct and to make sure their advisers are acting in the best interests of their clients. Deterring cold calling for superannuation switching models is an ASIC priority. We will continue to take action, where appropriate – including enforcement action – against individuals or entities who are engaging in misconduct. You can find more information on ASIC’s review of cold calling for superannuation switching business models in our news item Exposing high-pressure cold calling tactics and social media click-bait leading to superannuation switching (7 May 2024). We have issued Information Sheet 282 Unsolicited contact leading to financial advice (INFO 282) for unlicensed entities that engage with consumers, leading to financial advice. It sets out how the financial services laws apply to these entities and reminds them of their responsibility to ensure that their conduct complies with the law. ASIC has also launched a consumer awareness campaign, encouraging consumers to ‘just hang up’ when contacted by cold calling operators and to ‘just scroll past’ social media click-bait advertisements. To report misconduct, see Make a report of misconduct to ASIC on the ASIC website. For more information, see: 24-092MR ASIC issues warning over dodgy cold calling operators and online baiting tactics (7 May 2024) 24-094MR ASIC calls on super trustees to improve gatekeeping of member savings (9 May 2024)   Cyber security – Third-party exposure The practice of outsourcing services and products is crucial to most organisations operating in today’s economy, with 76% of leading global businesses outsourcing IT functions. While financial services businesses can outsource their services to third-party suppliers, they cannot outsource the associated risks and liabilities. Recently, ASIC released findings from our 2023 Cyber Pulse Survey: see Report 776 Spotlight on cyber: Findings and insights from the cyber pulse survey (REP 776). Worryingly, 44% of participating organisations admitted to not managing third-party or supply chain risk. ASIC has observed a growing number of cyber attacks on Australian organisations stemming from third-party attacks that exploit weaknesses in an organisations supply chain, giving them easy access to the organisation’s systems and networks. AFS licensees from across Australia have told ASIC they consider cyber security the biggest risk to their business, listing it as a high priority item for board meetings and noting they run regular staff training at all levels of their business. AFS licensees have moved to reinforce their internal cyber security after a series of high-profile incidents from late 2022. With many organisations acting to improve internal defences, their focus must now turn to mitigating third-party exposure – the new frontline in cyber risk management. For example, the SolarWinds breach of 2020 exploited a vulnerability in SolarWinds’ platform, giving the threat actor access to 3,000 email accounts across 150 organisations, including government agencies and multinational corporations. The breach cost each affected organisation an average of US$12 million. To enhance the cyber resilience of Australia’s financial institutions against known threat actors, the Council of Financial Regulators (CFR) developed the cyber and operational intelligence-led exercises (CORIE) framework: see Revised CORIE framework and rollout on the CFR website. CORIE uses threat intelligence to simulate adversary attacks and assess the cyber resilience of an organisation. Recent CORIE simulations have exposed vulnerabilities in third-party controls, including instances where third parties held administrator-level access to critical systems. The recent Latitude Financial cyber attack underscores the need for enhanced scrutiny of third parties with access to core systems. While IT outsourcing is essential for many organisations, basic controls – like multifactor authentication (MFA) for external providers – could minimise breach risks. Another concerning trend demonstrated by CORIE simulations is the use of weak passwords. Even with complex password creation requirements, users can find ways to craft weak passwords like ‘Pa$$w0rd123!’. MFA is one of the most effective techniques available to protect organisations from a cyber incident. Where MFA is not available, the Australian Signals Directorate’s Australian Cyber Security Centre (ACSC) recommends the use of passphrases: see Passphrases on the ACSC website. These measures should be implemented as part of a broader cultural shift throughout an organisation, driven by employee education, cyber awareness training and rigorous third-party risk assessment. To mitigate cyber risk, organisations must take an active approach to identifying, assessing, and monitoring third-party cyber risks. We encourage organisations to start by asking three simple questions: Expand allCollapse all 1. How much access do third parties have to my systems? 2. How is third-party access protected? 3. Where is my data? For more information, visit the Australian Signals Directorates ACSC website, including: questions to ask managed service providers, and how to manage your security when engaging a managed service provider.   Financial adviser registration On 16 February 2024, the registration requirement commenced whereby all relevant providers, except provisional relevant providers, must be registered before providing personal advice to retail clients in relation to relevant financial products. The registration requirement is an ongoing obligation and is separate to the requirement for AFS licensees to appoint their relevant providers to the financial advisers register. Self-licensed relevant providers must also be registered. AFS licensees and relevant providers should ensure they understand the circumstances when new registration is required and the circumstances that may lead to a relevant provider being deregistered. AFS licensees must register their relevant providers: after they authorise and appoint an adviser to the financial advisers register when they appoint an adviser who has moved from another AFS licensee when an adviser changes roles from a ‘provisional relevant provider’ to a ‘relevant provider’, and when an adviser is authorised by two or more AFS licensees and registered by one, and the adviser’s authorisation with their registering AFS licensee ceases.   From 16 February 2024, both the AFS licensee and the relevant provider will be in breach of the law if an unregistered relevant provider provides personal advice to retail clients in relation to relevant financial products. ASIC recently commenced a compliance program in relation to the registration requirement and has already identified that a number of advisers have not been registered following their move from one AFS licensee to another. In order to avoid regulatory action, please ensure all your advisers are currently registered, particularly those who have changed AFS licensee since 16 February 2024. For more information, see: Information Sheet 276 FAQs: Registration for relevant providers (INFO 276) – information about the registration requirement, including when a registration will cease Information Sheet 277 Registration of relevant providers: Guidance on making declarations (INFO 277) – guidance on the declarations required during the registration process, and registering a relevant provider on the ASIC website.   Report 779 Superannuation and choice products: What focus is there on performance? Around $1.1 trillion of Australians’ total retirement savings are invested in the choice product segment. The decision of where to invest these savings is one of the most important decisions a member will make – and is often made based on recommendations by a financial adviser. A 2018 Productivity Commission inquiry and the Australian Prudential Regulation Authority’s (APRA) annual Choice Heatmap highlighted persistent underperformance of some investment options within the choice sector. In 2023, APRA found one in five choice investment options with an 8-year history significantly underperformed the investment return benchmarks. To understand why some choice super fund members remained in these poorly performing investment options, we looked at what superannuation trustees, financial advisers and advice licensees did in relation to performance. Each of these stakeholders is responsible for assisting Australians to achieve good retirement outcomes. Financial advisers have an important role, and their clients (i.e. fund members) trust them to act in their best interests when providing advice about how to achieve their retirement objectives. On 21 February 2024, we published our observations in Report 779 Superannuation and choice products: What focus is there on performance? (REP 779). Failure to address underperformance Where to from here for financial advisers and advice licensees? Provisional relevant providers In March 2017, the Corporations Amendment (Professional Standards of Financial Advisers) Act 2017 commenced and introduced reforms to the Corporations Act to raise the education, training and ethical standards of financial advisers. The professional standards require financial advisers to: have an approved qualification pass the financial adviser exam participate in 40 hours of continuing professional development each year, and comply with the Financial Planners and Advisers Code of Ethics 2019 (Code of Ethics).   Anyone wanting to become a financial adviser must also complete a full-time professional year that includes at least 1,500 hours of work and activities and 100 hours of structured training (a total of 1,600 hours). For more information about the professional standards, see: Qualification, exam and professional development on the ASIC website, and the Code of Ethics.   As part of ASIC’s supervision activities, we conducted a review with a cross section of AFS licensees, which included understanding their experience with employing a provisional relevant provider. We asked them details about: the process for taking on the responsibility of training and supervising a provisional relevant provider the processes they used to verify and record training hours how they selected and monitored the supervisor of the provisional relevant provider, and the process for certifying the provisional relevant provider has meet all of the requirements for completion.   All licensees involved reported a positive experience of supporting a provisional relevant provider through their professional year. Some listed the benefits as supporting and assisting with their succession planning, and appreciated that they could mentor and train a provisional relevant provider from within the business rather than hiring an external adviser. We also observed licensee practices that could be improved, including: putting policies in place about who is qualified and suitable to be a supervisor developing processes for how licensees will monitor professional relevant providers and the supervisor, including their advice, once the provisional relevant provider is in the third and fourth quarters of their professional year, and having detailed processes in place for final sign off of the completion certificate.   AFS licensees are reminded of the importance of record keeping throughout the professional year. Most licensees indicated they were able to comply with the record-keeping obligations by using, and in some cases amending, the templates created by the former standards body, the Financial Adviser Standards and Ethics Authority. Others created their own methods for maintaining logbooks to record the structured and unstructured training hours, and to demonstrate and record that all key competencies were satisfactorily acquired. Keeping up to date with financial advice news Subscribe to keep updated on financial advice news. Subscribe to financial advice alerts

I respectfully concur from the Notice of Proposed Rulemaking on the Financial Data Transparency Act (FDTA) Joint Data Standards (“Joint Data Standards Proposal”) to require each respective agency to implement certain data standards for its regulated entities because there is insufficient discussion of the impact and costs associated with the adoption of these new data standards that will apply across the banking and financial services sector (including small entities as set forth under the Regulatory Flexibility Act).  While I support the FDTA’s mandate, I believe the Joint Data Standards Proposal would be improved by addressing head-on the elephant in the room—the very real costs that will be imposed on potentially tens of thousands of firms of all sizes that will eventually have to update their systems and records to adhere to the new data standards. I encourage all commenters to address the costs and benefits of the Joint Data Standards Proposal, including the necessary future agency rulemakings that will subsequently follow. I thank Ted Kaouk, Tom Guerin, Jeffrey Burns, and the staff of the CFTC, and all the other agencies for their efforts on this proposal. RELATED LINKS CFTC Press Release No. 8940-24

The Commodity Futures Trading Commission today voted to jointly propose and request public comment on the establishment of technical data reporting standards with other financial regulatory agencies. The proposal would establish uniform data standards for the collections of information reported to the CFTC, Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union Administration, Consumer Financial Protection Bureau, Federal Housing Finance Agency, Securities and Exchange Commission, and the Department of the Treasury. The proposal would also establish uniform data standards for data collected from these financial regulatory agencies on behalf of the Financial Stability Oversight Council. Comments on the proposal are due 60 days following publication in the Federal Register. The proposed standards would promote interoperability of financial regulatory data across the financial regulatory agencies through the adoption of common identifiers for legal entities, financial instruments, and other data. In addition to proposing the use of common identifiers, the proposal would also further standardize the format and transmission of data to financial regulatory agencies. The proposed rule is part of the implementation of the Financial Data Transparency Act of 2022 (FDTA). Although the CFTC is not specifically referenced in the FDTA, the Secretary of the Treasury designated the CFTC as a covered agency on May 3, 2024. While the designation does not require the CFTC to issue individual rules adopting the proposed technical data reporting standards, this request for comment will give interested parties an opportunity to provide input at this early stage. RELATED LINKS Voting Copy: Financial Data Transparency Act Joint Data Standards Statement of Commissioner Caroline D. Pham

TMX Group today announced its financing activity on Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) for July 2024. TSX welcomed 10 new issuers in July 2024, compared with 12 in the previous month and 17 in July 2023. The new listings were seven exchange traded funds, one industrial products & services company, one mining company and one special purpose acquisition company. Total financings raised in July 2024 decreased 90% compared to the previous month, and were down 10% compared to July 2023. The total number of financings in July 2024 was 17, compared with 56 the previous month and 38 in July 2023. For additional data relating to the number of transactions billed for TSX, please click on the following link: https://www.tmx.com/resource/en/440 TSXV welcomed three new issuers in July 2024, compared with five in the previous month and nine in July 2023. The new listings were three mining companies. Total financings raised in July 2024 increased 21% compared to the previous month, and were up 84% compared to July 2023. There were 93 financings in July 2024, compared with 94 in the previous month and 86 in July 2023. TMX Group consolidated trading statistics for July 2024 can be viewed at www.tmx.com. Related Document:TMX Group Equity Financing Statistics – July 2024  

When it comes to the Securities and Exchange Commission’s (SEC) US Treasury reforms, one thing is very clear: there’s an awful lot to do and not a lot of time to do it. From the development of documentation to the recalibration of certain capital rules, there’s an enormous laundry list of tasks that needs to be worked through – something that will require time and a collective effort from the entire industry. The SEC finalized its regulations last December, which include a requirement to clear certain Treasury cash transactions from December 31 next year and Treasury repos from June 30, 2026. Among other things, market participants will need to assess existing and future clearing models to determine which best suits their needs. Legal documentation will need to be developed, negotiated and executed, and regulatory-compliant structures for the segregation of client margin will need to be put in place and tested. All of this work comes against a backdrop of concern about the need to maintain and enhance market liquidity, particularly during periods of stress. For our part, ISDA will continue to engage closely with members and regulators and assist with implementation where we can. SIFMA is leading the work to develop the documentation, and we’re participating in that working group. ISDA is also providing input on the optimal clearing models. We’ve published a comparison of various clearing models for US Treasury transactions and derivatives that will be updated as new models emerge, and we recently submitted responses to the SEC on proposed rule changes by the Fixed Income Clearing Corporation (FICC) – one on clearing models and margin segregation and one on trade submission requirements. Solving these legal and operational issues will be critical, but it’s also important that the US prudential framework is calibrated so it is risk appropriate and supports market liquidity. One example is the lack of recognition in the revised US capital framework for cross-margining programs, such as the one offered by FICC and CME Group for transactions based on US Treasury securities and interest rate futures – an issue ISDA is exploring in partnership with FIA. These services allow firms to obtain initial margin efficiencies from offsetting trades in a portfolio of transactions, but there are no commensurate benefits from a capital perspective under the standardized approach for counterparty credit risk. As more Treasury securities and repos are cleared as a result of the SEC’s rule, a lack of recognition for cross-margining will constrain bank balance sheets and limit their ability to offer client clearing. ISDA has also worked with SIFMA to propose several calibration changes to the Basel III endgame proposals and the surcharge for global systemically important banks (G-SIB) to ensure the rules do not disproportionately hamper the ability of banks to act as intermediaries. These include changes to certain aspects of the rules for credit valuation adjustment and modifications to the complexity and interconnectedness categories of the G-SIB surcharge, following analysis that the current proposals would increase capital for client clearing businesses at US G-SIBs by more than 80%. That’s on top of a letter we sent to US prudential regulators earlier this year drawing attention to the fact that the non-risk-based supplementary leverage ratio (SLR) may impede banks’ capacity to participate in US Treasury markets and facilitate access to cleared markets, especially during periods of stress. We believe this is something that should be carefully assessed by regulators. All of these issues need to be resolved before we’re in a position to implement Treasury clearing safely and efficiently. The question is whether they can be completed in the time available, and this is something we’ll be discussing with members in the coming months. In the meantime, we encourage all market participants to engage with the relevant working groups at ISDA or elsewhere – everyone will need to work together to get this done.

Introduction Today, in a historic judgment with a $12.7 billion settlement, the Commodity Futures Trading Commission (Commission or CFTC) announced the entry of a consent order in its litigation against FTX Trading Ltd. (FTX) and Alameda Research LLC (Alameda). Today’s announcement sends a clear message regarding the Commission’s intent to hold fraudsters accountable. The consent order, entered by Judge P. Kevin Castel of the United States District Court for the Southern District of New York, resolves the CFTC’s litigation against FTX and Alameda filed on December 13, 2022.[1] The amended complaint charged defendants with two counts of fraud and material misrepresentations in connection with the sale of digital assets and alleged that defendants’ actions caused the loss of billions of dollars in FTX customer deposits. FTX and Alameda have agreed to findings of liability on each of the charges alleged in the amended complaint. The consent order, among other obligations, imposes: $8.7 billion in restitution; $4 billion in disgorgement; A permanent injunction prohibiting FTX and Alameda from engaging in further violations of the charged Commodity Exchange Act (CEA) and Commission regulations; and A permanent injunction prohibiting FTX and Alameda from trading for themselves or others, soliciting or accepting funds for trading, registering or claiming an exemption from registration with the Commission in any capacity, or acting as a principal of any registered person.   The total restitution and disgorgement amount of $12.7 billion is a historic judgment that will enable the Commission to compensate victims for the losses they suffered as a result of this massive fraud. Today’s resolution demonstrates the Commission’s strong commitment to achieving accountability, deterring future misconduct, and promoting compliance with the CEA and Commission regulations. The resolution sends a clear message that fraud in the derivatives markets will not be tolerated and that wrongdoers will be held accountable. I commend the Commission’s Division of Enforcement and the Commission on today’s landmark resolution. Yet, much work is left to be done. Going forward, we must prioritize efforts to protect customers in markets with regulatory gaps, where customers may be at higher risk due to the absence of adequate safeguards. I have called on the Commission before, and I do so again today, to take urgent action to adopt a holistic rule that directly addresses concerns such as conflicts of interest, risk management, transparency and oversight.[2] Every market for every asset subject to the Commission’s jurisdiction must have effective customer protections including, for example, segregation of customer funds, property, and assets. Customer Protection Rules are the Cornerstone of Vibrant Derivatives Markets and a Well-Functioning Financial System The vibrancy of derivatives markets depends on customers’ ability to trust that their funds will be safely held by custodians. Customers must be assured that their hard-earned money will not be misused, lost, or worse yet, stolen, by those whom they have entrusted with its safekeeping. In the absence of trust, the custodial relationship cannot thrive, derivatives markets suffer, and the entire financial system is harmed. Customer protection rules, in particular those rules protecting customer funds, are therefore crucial to the vibrancy of derivatives markets and a well-functioning financial system.[3] As directed by the CEA, the Commission has developed, adopted, and implemented rules that protect customers in derivatives markets, including rules that protect customer funds, property, and other assets[4] held by a custodian. Such rules require custodians to segregate and separately account for customer funds. A custodian may not commingle customer funds. As additional safety measures, custodians must also meet certain minimum capital requirements, file periodic and annual financial reports, maintain books and records, be subject to examinations, and comply with a host of other obligations. These measures are intended to promote transparency, monitor and manage risks, and enable oversight over the activities of custodians. Notwithstanding the Commission’s customer protection rules and efforts to preserve customer funds, customers have experienced significant losses in both heavily regulated markets as well as emerging markets, such as in the digital asset and cryptocurrency space. The rise of retail participation in emerging markets adds to the urgency of ensuring that customer funds are protected and that the integrity and stability of our markets is maintained. An Absence of Customer Protection Rules and Gaps in Regulation Enabled FTX to Misappropriate Billions of Dollars in Customer Funds On November 11, 2022, customers and our markets experienced the devastating effects of the precipitous collapse and shocking bankruptcy of FTX, which resulted in the loss of over $10 billion in customer funds.[5] Investigations into FTX’s demise revealed a concerning lack of customer protections, including commingling of customer funds, using customer funds to extend a line of credit to an affiliate, and investing customer funds in nonpermitted investments through an affiliate, among others. Customers and the public were not alerted to FTX’s ongoing misconduct due to the absence of crucial regulation over digital assets needed to establish appropriate risk management mechanisms to address conflicts of interest and other related issues, a lack of transparency, and inadequate oversight. Conflicts of Interest Plagued FTX and Alameda From the beginning, FTX and Alameda had significant conflicts of interest issues stemming from their vertically-integrated market structure. A gap in regulation, however, allowed these issues to go unaddressed. Bankman-Fried founded Alameda in November 2017, as a digital asset trading and investment firm. In late 2018, he and other Alameda employees began to build what would ultimately become FTX, a centralized digital asset trading platform. Once FTX was launched, no later than May 2019, Alameda began operating as the primary market maker on FTX’s trading platform. Bankman-Fried controlled both FTX and Alameda, serving as a signatory on core corporate agreements and bank accounts for both entities. Throughout their operations, FTX and Alameda regularly shared employees, office space, systems, communication channels, and accounts. FTX and Alameda relied on each other’s personnel, assets and resources to conduct their operations. FTX and Alameda also regularly transferred large amounts of assets between the entities, often without documentation or effective tracking. I have raised the alarm, time and time again, about conflicts of interest and other concerns in emerging asset classes and the urgent need for the Commission to adopt a holistic rule that addresses these issues.[6] Segregation and Restrictions on the Use and Investment of Customer Funds are Fundamental Customer Protections At the core of customer protection rules is the fundamental principle that custodians must segregate and separately account for customer funds that they receive to margin, guarantee or secure the trades of the customer. A custodian is strictly prohibited from commingling customer funds with its own funds and from using or investing customer funds in violation of the CEA and Commission regulations. Transparency and Oversight are Crucial to Detecting and Preventing Misconduct Disclosures, reporting and examinations are critical to creating transparency into business operations and functions and enabling customers and the public to have proper oversight over business conduct. It is imperative that the Commission and other regulators have proper oversight and transparency into the digital asset and cryptocurrency ecosystem. On November 11, 2022, FTX and more than 100 of its affiliates filed for Chapter 11 bankruptcy proceedings. FTX’s collapse unleashed a wave of failures across the digital asset and cryptocurrency ecosystem and left numerous customers with devastating losses. On December 13, 2022, in the criminal case parallel to the Commission’s civil case, the United States Attorney’s Office for the Southern District of New York indicted Bankman-Fried on eight counts, including fraud, money laundering, and campaign finance offenses.[7] In November 2023, jurors found Bankman-Fried guilty of misappropriating billions of dollars in customer funds deposited with FTX. Bankman-Fried was convicted of two counts of wire fraud, two counts of conspiracy to commit wire fraud, one count of conspiracy to commit securities fraud, one count of conspiracy to commit commodities fraud, and one count of conspiracy to commit money laundering. On March 28, 2024, he was sentenced to 25 years in prison for his role in this massive fraud scheme and has begun serving his sentence. Conclusion FTX’s failure and the catastrophic consequences of its collapse confirm that there is no time to waste. The time is now for the Commission to adopt a comprehensive rule addressing customer protections. I commend the CFTC’s Division of Enforcement, including Carlin Metzger, Nina Ruvinsky, Yusuf Capar, Elizabeth N. Pendleton, Scott R. Williamson, and Robert T. Howell, for their work on this matter. [1] The CFTC’s original complaint filed on December 13, 2022 listed Sam Bankman-Fried (Bankman-Fried), FTX and Alameda as defendants on the case. Commodity Futures Trading Cmm’n v. Bankman-Fried, No. 1:22-cv-10503 (S.D.N.Y Dec. 13, 2022); Press Release No. 8638-22, CFTC Charges Sam Bankman-Fried, FTX Trading and Alameda with Fraud and Material Misrepresentations (Dec. 13, 2022), CFTC Charges Sam Bankman-Fried, FTX Trading and Alameda with Fraud and Material Misrepresentations | CFTC. On December 21, 2022, the Commission filed an amended complaint, adding Caroline Ellison (Ellison) and Zixiao “Gary” Wang (Wang) as defendants on the case. Press Release No. 8644-22, CFTC Charges Alameda CEO and Alameda and FTX Co-Founder with Fraud in Action Against Sam Bankman-Fried and his Companies (Dec. 21, 2022), CFTC Charges Alameda CEO and Alameda and FTX Co-Founder with Fraud in Action Against Sam Bankman-Fried and his Companies | CFTC. On December 23, 2022, the Court entered a consent order of judgement as to liability against Ellison and Wang. Months later, on February 28, 2023, the Commission filed a separate, but related, case against former FTX executive Nishad Singh (Singh). Commodity Futures Trading Cmm’n v. Singh, No. 1:23-cv-01684 (S.D.N.Y Feb. 28, 2023); Press Release No. 8669-23, CFTC Charges FTX Co-Owner with Fraud by Misappropriation and Aiding and Abetting Fraud Related to Digital Asset Commodities (Feb. 28, 2023), CFTC Charges FTX Co-Owner with Fraud by Misappropriation and Aiding and Abetting Fraud Related to Digital Asset Commodities | CFTC. On April 13, 2023, the Court entered a consent order of judgment as to liability and partial injunctive relief against Singh. The orders against Ellison, Wang and Singh reserve the issue of monetary relief or further remedies for determination by the Court separately upon motion of the Commission or by a proposed consent order. The Court has not yet reached a resolution as to Bankman-Fried. [2] Kristin N. Johnson, Commissioner, CFTC, Statement Calling for the CFTC to Initiate A Rulemaking Process for CFTC-Registered DCOs Engaged in Crypto or Digital Asset Clearing Activities (May 30, 2023), https://www.cftc.gov/PressRoom/SpeechesTestimony/johnsonstatement053023. [3] Kristin N. Johnson, Commissioner, CFTC, Statement of Commissioner Kristin N. Johnson: Preserving Trust and Preventing Erosion of Customer Protection Regulation (Nov. 3, 2023), Statement of Commissioner Kristin N. Johnson: Preserving Trust and Preventing the Erosion of Customer Protection Regulation | CFTC. [4] The term “customer funds” will be used herein to refer to funds, property and other assets belonging to a customer. [5] On November 11, 2022, FTX and more than 100 of its affiliates filed for Chapter 11 bankruptcy proceedings following a run on the FTX platform. It is estimated that FTX’s collapse resulted in over $10 billion in client fund losses based on FTX’s affiliate-based relationship with Alameda. [6] Kristin N. Johnson, Commissioner, CFTC, Statement Calling for the CFTC to Initiate A Rulemaking Process for CFTC-Registered DCOs Engaged in Crypto or Digital Asset Clearing Activities (May 30, 2023), https://www.cftc.gov/PressRoom/SpeechesTestimony/johnsonstatement053023; Kristin N. Johnson, Commissioner, CFTC, Opening Statement Before the Market Risk Advisory Committee Meeting (Dec. 11, 2023), https://www.cftc.gov/PressRoom/SpeechesTestimony/johnsonstatement121123. [7] U.S. v. Bankman-Fried, 22 CRM 673 (S.D.N.Y Dec. 13, 2022); Press Release No. 22-386, United States Attorney Announces Charges Against FTX Founder Samuel Bankman-Fried (Dec. 13, 2022), Southern District of New York | United States Attorney Announces Charges Against FTX Founder Samuel Bankman-Fried | United States Department of Justice. The United States Securities and Exchange Commission (SEC) also filed a parallel case on this matter, which is pending resolution. SEC v. Bankman-Fried, No. 1:22-cv-10501 (S.D.N.Y. Dec. 13, 2022); Press Release No. 2022-219, SEC Charges Samuel Bankman-Fried with Defrauding Investors in Crypto Asset Trading Platform FTX (Dec. 13, 2022), SEC.gov | SEC Charges Samuel Bankman-Fried with Defrauding Investors in Crypto Asset Trading Platform FTX. RELATED LINKS CFTC Press Release No. 8938-24

The Commodity Futures Trading Commission today announced a whistleblower award of over $1 million to a whistleblower who provided significant information and assistance that led the CFTC to bring an enforcement action connected to digital asset markets.  “Identifying unlawful conduct in the digital asset marketplace is a major priority for the CFTC, especially as everyday Americans are increasingly victimized by digital asset scams,” said Director of Enforcement Ian McGinley. “During the last fiscal year, digital asset cases accounted for almost 50% of the CFTC’s docket, and the majority of whistleblower tips that year were related to digital assets.” “Whistleblowers have increasingly played a significant role in the CFTC’s enforcement actions in the digital assets space,” said Whistleblower Office Director Brian Young.  “Here, the whistleblower provided sufficiently specific and credible information that assisted the CFTC in bringing a successful action.” The CFTC based its enforcement action on whistleblower-provided information about improper trading that was unknown to the CFTC.  About the CFTC’s Whistleblower Program The Whistleblower Program was created under Section 748 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Since issuing its first award in 2014, the CFTC has granted whistleblower awards amounting to approximately $380 million. Those awards are associated with enforcement actions that have resulted in monetary sanctions totaling nearly $3.2 billion. The CFTC issues awards related not only to the agency’s enforcement actions, but also in connection with actions brought by other domestic or foreign regulators if certain conditions are met. The Commodity Exchange Act (CEA) provides confidentiality protections for whistleblowers. Regardless of whether the CFTC grants an award, the CFTC will not disclose any information that could reasonably be expected to reveal a whistleblower’s identity, except in limited circumstances. Consistent with this confidentiality protection, the CFTC will not disclose the name of the enforcement action in which the whistleblower provided information or the exact dollar amount of the award granted. Whistleblowers are eligible to receive between 10 and 30 percent of the monetary sanctions collected. All whistleblower awards are paid from the CFTC’s Customer Protection Fund, which was established by Congress, and is financed entirely through monetary sanctions paid to the CFTC by violators of the CEA. No money is taken or withheld from injured customers to fund the program. * * * * * Anyone with information related to potential violations of the CEA or the CFTC’s rules and regulations can submit a tip electronically by filing a Form TCR (Tip, Complaint or Referral) online. Visit Whistleblower.gov for more information about the CFTC’s Whistleblower program. RELATED LINKS WB Award No. 24-WB-07

The Commodity Futures Trading Commission today announced the U.S. District Court for the Southern District of New York entered a consent order of permanent injunction and other equitable relief against FTX Trading Ltd. and Alameda Research LLC (together, FTX) and ordered FTX to pay $12.7 billion in monetary relief to FTX customers and victims of FTX’s fraud. The order requires FTX to pay $8.7 billion in restitution and $4 billion in disgorgement, which will be used to further compensate victims for losses suffered as a result of the massive fraudulent scheme orchestrated by Samuel Bankman-Fried, his now-bankrupt FTX group of companies, and a core group of FTX insiders. [See CFTC Press Release Nos. 8638-22, 8644-22, 8669-23].  In addition, the order finds FTX violated the Commodity Exchange Act (CEA) and CFTC regulations, imposes injunctions against further violations of the CEA and CFTC regulations as well as trading and registration prohibitions, and requires FTX and Alameda to cooperate with the CFTC in its ongoing litigation. The order finds FTX and Alameda made material misrepresentations and omissions to customers. The court noted that FTX touted itself as “the safest and easiest way to buy and sell crypto,” and that customer assets, including digital assets such as Bitcoin and Ether, were held in “custody” by FTX while stating FTX segregated customer assets from FTX’s own assets as a general principle, when in fact customer funds were commingled and misappropriated.  In a related settlement agreement approved by the Bankruptcy Court for the District of Delaware, the CFTC agreed not to seek a civil monetary penalty against FTX and to subordinate its monetary claims to those of victims of the FTX fraud scheme. As described by FTX in its proposed reorganization plan filed in the bankruptcy proceeding, payments by FTX towards its CFTC disgorgement obligation will be used to further compensate victims through a supplemental remission fund. The plan remains subject to approval in the bankruptcy proceeding. “FTX used age-old tactics to create an illusion that it was a safe and secure place to access crypto markets. But the basic regulatory tools, like governance, customer protections, and surveillance that exist to identify misconduct and ultimately prevent collapse, were simply not there,” said CFTC Chairman Rostin Behnam. “Like countless other CFTC crypto resolutions, including major players Binance, BitMEX, and Tether, this resolution with FTX is consistent with the enforcement commitments I have long made as Chairman. But, as I have been saying for years, this is just the tip of the iceberg. In the absence of digital asset legislation to fill regulatory gaps, entities will continue to operate in the shadows without these basic tools of sound regulation, sharpening their deceptive practices and continuing to dupe customers." Division of Enforcement Director Ian McGinley added, “Not only is this multi-billion dollar recovery for victims the largest such recovery in CFTC history, we achieved it with remarkable speed. FTX’s massive fraud collapsed 21 months ago and in that time the CFTC investigated, filed a complaint, and achieved what many thought was impossible at the time of the collapse - a resolution to compensate victims for the losses they suffered. I commend our Chicago-based team for their tireless efforts on behalf of FTX’s victims.” Case Background The consent order stems from the CFTC complaint filed December 13, 2022 against Bankman-Fried and FTX, and amended December 21, 2022, to include two former FTX executives, Caroline Ellison and Zixiao “Gary” Wang. The CFTC complaint charged Bankman-Fried, who controlled FTX and Alameda, with orchestrating a scheme to defraud.  The court entered consent orders of judgment on liability against Wang and Ellison on December 23, 2022. In a related case, the court entered a consent order of judgment as to liability and partial injunctive relief against Nishad Singh, a third FTX insider, on April 13, 2023.  The consent order resolves the CFTC’s litigation against FTX, leaving the case pending as to the four individual defendants including Bankman-Fried. In its continuing litigation, the CFTC seeks restitution to defrauded victims, disgorgement of ill-gotten gains, civil monetary penalties, permanent trading and registration bans, and permanent injunctions against further violations of the CEA and CFTC regulations, as charged.  The CFTC appreciates the assistance of the U.S. Department of Justice, the U.S. Attorney’s Office for the Southern District of New York, the Federal Bureau of Investigation, and the Securities and Exchange Commission. The CFTC appreciates the cooperation of the Justice Department’s Tax Division.     The Division of Enforcement staff responsible for this matter are Carlin Metzger, Nina Ruvinsky, Yusuf Capar, Elizabeth N. Pendleton, Scott R. Williamson, Robert T. Howell, Gretchen Lowe, and former staff member Bryan Hsueh. Alex Case, Margaret Aisenbrey, and Anne Stukes of the Office of General Counsel also contributed to this matter. RELATED LINKS Consent order: FTX Trading LTD. Statement of Commissioner Kristin N. Johnson

Nodal Exchange today announced a new monthly volume record for environmental markets with 64,562 lots traded of futures and options, surpassing the prior record by 25% set in May 2024 of 51,747 lots on Nodal Exchange.  The traded volume in July 2024 was up 231% from July 2023. The product suite also posted an all-time high in open interest of 376,548 lots during July. With more than 41,000 lots physically delivered, open interest ended the month at 339,261 lots, up 40% from 242,344 lots from a year earlier. Broken down further, open Interest in environmental options, including California Carbon Allowance (CCA) options and California Low Carbon Fuel Standard (LCFS) options reached a new record of 35,155 lots at month-end. Total futures and options open interest in LCFS products ended the month with a new open interest record of 61,049 lots. Several other product groups also posted records in July. The traded volume in renewable energy certificates (RECs) totaled 34,489 lots, up 88% from 18,386 lots a year earlier. Open interest in REC contracts ended the month at 241,942 lots, up 18% from 204,926 lots a year earlier. CRS-listed REC futures on Nodal posted volume of 22,291 lots in July, up 188% from 7,736 lots a year earlier. Open interest in CRS-listed RECs hit a new record of 84,099 contracts at the end of July, up 50% from 56,198 lots a year earlier. CRS-listed RECs include: Texas wind and Texas solar, NAR wind and NAR solar, M-RETS wind, WREGIS wind and the National wind REC contracts (deliveries from all four registries). North American compliance carbon products on Nodal posted a monthly volume record of 27,761 lots in July, a 98-fold increase from a year earlier. Carbon open interest ended the month at a record of 36,270 lots, up 17.31% from 30,918 lots a year earlier. “Nodal Exchange is committed to a more sustainable future and is proud to serve the environmental markets with the largest suite of environmental futures and options in the world,” said Paul Cusenza, Chairman and CEO of Nodal Exchange and Nodal Clear. “We are excited to see the support of the environmental markets with outstanding growth in both futures and options traded on Nodal Exchange and cleared by Nodal Clear.”  

CME Group Inc., the world's leading derivatives marketplace, today declared a third-quarter dividend of $1.15 per share. The dividend is payable September 25, 2024, to shareholders of record as of September 9, 2024. As the world's leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. 

15th listing of 2024 on Euronext Growth Milan 33rd listing on Euronext in 2024 The company raised €4 million Market capitalisation at IPO is €14 million Borsa Italiana, part of the Euronext Group, today congratulates Adventure on its listing on Euronext Growth Milan. Adventure is a digital communications company and a leader in digital technologies and solutions. It owns and operates ameconviene.it, a price comparison website for gas, power, phone, and insurance rates that is a benchmark in the online price comparison marketplace, and which stands out for its unique approach to the collection of qualified contacts and in-depth analysis of Italian consumers' needs. Adventure’s listing represents the 15th listing this year on Euronext Growth Milan, Borsa Italiana’s market for small and medium-sized companies, and it is Euronext’s 33rd listing of this year.  In the placement phase, Adventure raised €4 million. The free float at the time of admission is 28.57% and the market capitalisation at IPO is €14 million. Silvana Cozza, CEO of Adventure, said: “We are proud of such a significant and prestigious achievement – indeed, a landmark for Adventure. Ringing the bell at Borsa Italiana was a moment I will never forget as an entrepreneur, as a manager, and also as a citizen who loves her home country. We want to grow bigger, we are ambitious, and we have new challenges ahead of us to implement our industrial plan including artificial intelligence, innovation and the impact of new technologies on our business.”

The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has today published its latest edition of the Spotlight on Markets Newsletter. Your one-stop-shop in the world of EU financial markets focuses in July on the latest developments in relation to the Regulation on the Markets in Crypto-Assets (MiCA) and the Digital Operational Resilience Act (DORA). ESMA published an opinion on global crypto firms using their non-EU execution venues. Under DORA, the European Supervisory Authorities published the second batch of policy products and the Final report on the draft technical standards on subcontracting ICT services and have announced the EU systemic cyber incident coordination framework. On a different note, ESMA set out its long-term vision on the functioning of the Sustainable Finance Framework and published the results of its fifth stress test exercise for Central Counterparties.  In addition, ESMA, together with the National Competent Authorities, released an analysis of the cross-border provision of investment services in 2023. New consultations on different aspects of the Central Securities Depositories Regulation Refit were launched, as well as a new package of public consultations in the context of the MiFIR review. Finally, ESMA published an update of its Reporting Manual on the European Single Electronic Format. The newsletter features a full overview of all publications, together with information on hearings and webinars. For updates, follow us on X and LinkedIn.

One United Properties (BVB: ONE), the leading Romanian green developer of residential, mixed-use, and office real estate, announces the publication of the prospectus for the share capital increase following its approval by the Romanian Financial Supervisory Authority. The Group aims to raise 70 million euros to finance the Company's next growth phase by issuing 1.750.000.000 new shares. "Since becoming a public company, we have consistently delivered on the promises made to our investors, with a clear focus on expanding our business. Our successful IPO in 2021 was a pivotal moment that enabled our strategic expansion into the premium residential segment, exemplified by the remarkable success of One Cotroceni Park. Similarly, our office division, which now boasts a 95% lease ratio, has fulfilled our commitment to investors, driven by our belief that Bucharest deserves world-class office spaces to establish itself as a leading European work hub. Today, our construction sites span 12 developments, comprising more than 4,000 residential units and nearly 45,000 sqm of office and commercial spaces. Our vision for the future includes entering the affordable premium housing segment, where we see significant growth potential. The planned share capital increase is the next milestone for this growth, and we invite our esteemed shareholders to participate and increase their investment in One United Properties by approximately 10% of their existing holdings. This capital infusion accelerates our ambitious growth plans, positioning us to double our business within the next five years and potentially quadruple it over the next decade, while maintaining our LTV at a prudent level," said Victor Capitanu, co-CEO of One United Properties. The share capital increase operation will be organized in two stages. In the first stage, the shareholders who purchased ONE shares by the date of guaranteed participation, August 2nd, 2024, will be entitled to subscribe the new shares, respecting the preference rights, at the nominal value of 0.2 lei. The preference rights, having symbol ONER03, were loaded in the shareholders' accounts on August 7th. The preference right will be tradeable on the Main Market of the Bucharest Stock Exchange between August 9th and 13th. Therefore, those who want to subscribe to new shares but do not have any or sufficient preference rights will be able to buy them at the price set in the market. The first stage of the share capital increase will start on August 19th and will last for 32 calendar days, until September 19th. To subscribe to one new share in stage 1 of the share capital increase at 0.2 lei, an investor must hold 2,1879186 ONER03 preference rights. The shares that remain unsubscribed during the first stage might be offered in a private placement at a price established by the Board of Directors decision, considering the price formed during the bookbuilding process. 60% of the capital intended to be raised by the Company has already been committed by the two co-founders and executive members of the Board of Directors, Victor Capitanu and Andrei Diaconescu, as well as the Chairman of the Board, Claudio Cisullo and Board Member, Marius Diaconu. The capital raised in the share capital increase operation will be used to expand One United Properties' addressable market beyond its current residential segment focus of luxury, high-end, and premium developments and will accelerate the development of the affordable premium residential segment, which targets Bucharest's middle class. The Company has land under negotiation for 10,000 residential units exclusively for this sub-segment, with the first memorandum of understanding for a 21-hectare plot of land that will host 5,000 units already signed. In the first half of 2024, One United Properties sold and pre-sold 452 apartments and commercial units with a total surface of 43,809 sqm, 624 parking spaces, and other unit types for 123.3 million euros. At the end of May 2024, pre-sales started at the second phase of One Lake District, where 867 units are being built. Consequently, as of June 30th, 2024, 66% of the available units under development and delivered were sold out. As of June 30th, 2024, One United Properties had in ownership, or under pre-SPA, 285,100 sqm of land locations for further development, with total above-ground gross building rights (GBA) of approximately 988,000 sqm. All these land plots are currently in the planning phase. The Group estimates the construction of 7,000 apartments, services for communities, and 146,000 sqm of rental commercial buildings. Out of the commercial buildings, 121,000 sqm will host offices and the remaining 25,000 sqm are located within buildings that will undergo restoration.

Pensions savers stand to benefit from a new proposed framework designed to shift the focus from costs to long term value, and ultimately deliver better retirement savings.   The Financial Conduct Authority (FCA), the Department for Work and Pensions (DWP) and the Pensions Regulator (TPR) aim to implement a joint framework for workplace defined contribution schemes. The joint framework would be used by pension providers and those making decisions on behalf of savers to provide greater transparency over how schemes are performing. Schemes will be compared on public metrics that demonstrate value – not just costs and charges, but also investment performance, and service quality. They would, once the final framework is decided, be publicly rated red, amber or green. Poorly performing schemes will be required to improve or ultimately protect savers by transferring them to better schemes. This should lead to better value pensions, without savers themselves having to take action. The proposals will also support the FCA’s secondary growth and competitiveness objective. Focusing on value rather than costs will enable providers to invest in assets which could deliver greater long-term returns but have higher management costs, such as infrastructure or venture capital. Sarah Pritchard, Executive Director of Markets and International at the FCA, said: “16 million people save for their retirement into defined contribution pension schemes. We’re working with the government and the Pensions Regulator to help them get better returns. “We want to see a focus on long-term value, not just costs and charges. Given the impact these changes could have we are consulting now to ensure that the pension system can be ready to go when the legislative changes that need to happen are ready.” Emma Reynolds MP, Minister for Pensions, said:  “Last year, over £130 billion was saved into workplace pension schemes – money which we want to see working hard for future pensioners to give them better retirement incomes.  “Our Pension Bill and Pensions Review will make pensions fit for the future, and having an effective Value for Money framework will lay the foundations for this.  "I would encourage responses from across the industry, including trust-based schemes, to this consultation.”  Nausicaa Delfas, Chief Executive of The Pensions Regulator, said:  “We want every pension saver to get value for money from their pensions. That means good investment returns, and high-quality services, for a competitive price.  This is a great opportunity for the pensions industry to help to transform pension saving for millions, and to deliver greater value for their retirement.”    The FCA is seeking feedback on the framework for pension schemes it regulates. The Government has recently announced its intention to legislate so that the framework can also apply to schemes regulated by TPR, and feedback is also invited in relation to these schemes. Responses will be shared with the Government and TPR to support swift development of a consistent approach once legislation is in place.  The framework is one of a number of joint initiatives to deliver better outcomes for pension savers including the Advice Guidance Boundary Review and the Pensions Dashboard. Background: A copy of the consultation paper is available to journalists only, on request from the press office. FS23/3: Government-regulator response to ‘Value for Money: A framework on metrics, standards and disclosures’. The FCA regulates contract-based pensions, which involve a contract between an individual and the pension provider TPR regulates trust-based pension schemes, which have a board of trustees overseeing the scheme The Government has recently announced its intention for a Pension Schemes Bill which includes legislating for the VFM framework to apply across the market, including schemes regulated by TPR, alongside other measures when Parliamentary time allows.  

India’s venture capital (VC) landscape during the first half (H1) of 2024 highlights a strategic shift towards relatively larger investments, as reflected by the 45.3% increase in disclosed funding value year-on-year (YoY) despite a 2.1% drop in deal volume. This trend signifies investors’ growing confidence in high-potential startups, with significant deals like Zepto’s $665 million and Meesho’s $300 million fundraisings pointing to a robust future for the Indian startup ecosystem, says GlobalData, a leading data and analytics company. An analysis of GlobalData’s Deals Database revealed that India witnessed the announcement of a total of 572 VC deals of worth $5.6 billion during H1 2024 compared to 584 VC deals of worth $3.8 billion in H1 2023. Aurojyoti Bose, Lead Analyst at GlobalData, comments: “The massive jump in VC funding value despite a decline in deal volume can be seen as an indicator of improving investors’ appetite for big investments while also adopting a cautious approach. This can also be understood from the fact that the average size of VC deals increased from $6.5 million in H1 2023 to $9.7 million in H1 2024.” Some of the notable VC funding deals announced in India during H1 2024 include $665 million worth of funding raised by Zepto, $300 million raised by Meesho, $216 million raised by PharmEasy, $150 million raised by Radiance, and $148 million raised by Kogta Financia. Bose adds: “India, apart from being a leading APAC market for VC funding activity and standing just next to China in terms of both deals volume as well as value, is also among the top five markets globally.” India accounted for 7% share of the total number of VC funding deals announced globally during H1 2024 while its share of the corresponding disclosed funding value stood at 4.4%. Bose concludes: “As investors continue to pour substantial funding into promising startups, it underscores the improving confidence in India’s market potential. This not only bolsters the country’s standing in the global VC landscape but also sets the stage for a vibrant and resilient startup ecosystem poised for dynamic growth in the coming years.” Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain.

Iress today announced that it has partnered with Ediphy to provide its trading customers with a comprehensive fixed income solution to Iress’ global network. Through the partnership, Iress trading customers will have access to a low-cost mechanism to trade fixed income and the ability to source comprehensive liquidity from fixed income providers and venues covering the USA, Europe and APAC.Ediphy is a specialist in fixed income markets, offering fixed income execution and workflow automation, large-scale data management and analytics. Ediphy provides automated execution in government, sovereign, supranational, and agency bonds (SSAs), credit bonds and cleared interest rate swaps (IRS), with aggregated liquidity in excess of 250,000 International Securities Identification Numbers (ISINs). Iress’s CEO, Global Trading and Market Data, Jason Hoang, said: “We’re delighted to have this key partnership in place with Ediphy. Our customers are increasingly demanding the ability to trade fixed income instruments, with up to 20% of their order flows being aligned to fixed income as an asset class. This partnership further extends our ability to provide access to additional fixed income liquidity sources globally, without the need to onboard individual venues and liquidity providers.”Ediphy’s CEO, Christopher Murphy, said: “Fast changing market structures and increased investor demand for fixed income securities presents growing challenges for investment managers. Ediphy combines cutting edge technology with deep market experience to simplify and automate fixed income trading for investment managers.“We’re delighted to partner with Iress to bring simplicity and automation to their clients' fixed income trading, which will further support their community of leading investment management clients.”

FY2024 Financial Summary   FY2024 FY2024 Adjusted* Revenue S$1,231.7 million, up 3.1% EBITDA S$702.2 million, up 2.1% S$711.6 million, up 3.3% Net profit attributable to equity holders of the company (NPAT) S$597.9 million, up 4.7% S$525.9 million, up 4.5% Earnings per share (EPS) 55.9 cents 49.2 cents Proposed final quarterly dividend per share  9.0 cents, up 0.5 cents * Adjusted EBITDA, NPAT and EPS exclude certain non-cash and non-recurring items that have less bearing on SGX Group’s operating performance. Hence, they better reflect the group’s underlying performance. Adjusted figures are non-SFRS(I) measures. Please refer to Section 8 of our financial results for reconciliations between the adjusted and their equivalent measures. All figures are for the year except for figures in brackets, which are for the year earlier unless otherwise stated. Figures may be subject to rounding. The presentation of revenue has been revised in FY2024 to the following four operating segments – Fixed Income, Currencies and Commodities; Equities – Cash; Equities – Derivatives; and Platform and Others. FY2023 revenue has been reclassified to the four operating segments for a like-for-like comparison against FY2024[1]. Singapore Exchange (SGX Group) today reported FY2024 adjusted net profit of S$525.9 million, 4.5% higher from the previous year (S$503.2 million). Adjusted EBITDA was up at S$711.6 million (S$688.6 million), while adjusted earnings per share was 49.2 cents (47.1 cents). Revenue increased 3.1% to S$1,231.7 million (S$1,194.4 million), mainly driven by higher revenues from Currencies and Commodities[2] and Platform and Others, partially offset by lower Equities – Cash2 and Equities – Derivatives2 revenue.  The Board of Directors has proposed a final quarterly dividend of 9.0 cents (8.5 cents) per share, payable on 25 October 2024, for approval at the forthcoming annual general meeting. If approved, this represents an annualised increase of 5.9%. Loh Boon Chye, Chief Executive Officer of SGX Group, said, “Our multi-asset strategy has yielded positive results over the years and will remain our core differentiator. Revenue growth in FY2024 was led by strong volumes in our currencies and commodities businesses as we expanded our customer base and drove higher activity. Our currencies and commodities franchises are on a healthy growth momentum with volumes doubling over the last three years.”  “Our equities businesses showed stronger activity in the second half of the financial year, with equity derivatives daily average volume and securities daily average value increasing 11% and 21% half-on-half respectively. We are pushing ahead with our efforts to increase market participation, product development and adoption, as well as cross-border connectivity.  At the same time, we will work closely with the Review Group set up by the Monetary Authority of Singapore to recommend measures to strengthen equities market development in Singapore,” added Mr. Loh.  Our Fixed Income, Currencies and Commodities (FICC) segment has delivered more than 20% CAGR in the last three years[3]. Commodities daily average volume (DAV) grew 50% to about 240,000 contracts in FY2024, driven mainly by broadening participation in our iron ore futures contracts during the overnight T+1 session. Looking ahead, the next phase of growth for commodities will be anchored on synergies between our ferrous and freight offering. Our OTC FX average daily volume well surpassed our target with a 47% increase to reach US$111 billion in FY2024, while our currency futures DAV grew 36% to about 204,000 contracts. Our OTC FX business is projected to contribute mid-to-high single digit percent of Group EBITDA in the medium term, compared to around 3% of Group EBITDA in FY2024. In the medium term, we aim to grow Group revenue (excluding treasury income) between 6-8% CAGR. This will be driven mainly by low to mid-teens percentage growth in our OTC FX and exchange traded derivatives businesses. We expect to achieve positive operating leverage as group expense growth[4] is expected to be in the low to mid-single digit percentage CAGR in the medium term. Results Summary Fixed Income, Currencies and Commodities (FICC) FICC revenue increased 22.3% to S$322.5 million (S$263.6 million) and accounted for 26.2% (22.1%) of total revenue[5].  FICC – Fixed Income Fixed Income revenue remained comparable at S$8.5 million (S$8.3 million). Listing revenue: S$5.7 million, up 12.0% from S$5.1 million Corporate actions and other revenue: S$2.8 million, down 12.0% from S$3.2 million   There were 1,015 bond listings raising S$296.3 billion, compared to 918 bond listings raising S$243.4 billion a year earlier. FICC – Currencies and Commodities  Currencies and Commodities revenue increased 23.0% to S$314.0 million (S$255.3million).  Trading and clearing revenue: S$238.3 million, up 28.5% from S$185.4 million Treasury and other revenue: S$75.7 million, up 8.3% from S$69.9 million   Trading and clearing revenue grew by S$52.9 million, mainly from increased volumes in commodity derivatives and OTC FX transactions. Commodity derivatives volumes increased 50.2% to 61.5 million contracts (41.0 million contracts), mainly due to higher volumes in iron ore derivatives.    Currency derivatives volumes increased 34.2% to 49.2 million contracts (36.7 million contracts), mainly due to higher volumes in USD/CNH FX futures contracts.   OTC FX headline average daily volume (ADV) increased 46.6% to US$111.1 billion (US$75.8 billion) due to an increase in swaps activities.  Equities – Cash Equities – Cash revenue declined by 2.1% to S$334.9 million (S$342.1 million) and accounted for 27.2% (28.6%) of total revenue.  Listing revenue: S$29.7 million, down 3.9% from S$30.9 million Trading and clearing revenue: S$168.1 million, down 4.1% from S$175.4 million Securities settlement, depository management, corporate actions and other revenue: S$137.1 million, up 1.0% from S$135.7 million   We recorded 7 (8) new equity listings which raised S$117.0 million (S$37.6 million). Secondary equity funds raised were S$1.2 billion (S$4.8 billion).  Securities daily average traded value (SDAV) declined 3.9% to S$1.06 billion (S$1.10 billion) and total securities traded value declined 4.2% to S$263.7 billion (S$275.5 billion). This was made up of Cash Equities[6], where traded value decreased by 3.8% to S$253.2 billion (S$263.2 billion), and Other Products[7], where traded value decreased 13.9% to S$10.5 billion (S$12.2 billion). There were 249 (250) trading days in FY2024. Overall average clearing fees remained comparable at 2.49 basis points (bps) (2.49 bps). Turnover velocity (primary-listed) was 37.5% (37.4%).  The increase in securities settlement, depository management, corporate actions and other revenue was mainly due to higher interest income from handling of corporate actions, partially offset by lower number of settlement instructions. Equities – Derivatives  Equities – Derivatives revenue declined 7.5% to S$334.0 million (S$361.3 million) and accounted for 27.1% (30.2%) of total revenue.  Trading and clearing revenue: S$256.1 million, down 9.0% from S$281.6 million Treasury and other revenue: S$77.9 million, down 2.2% from S$79.7 million   The decline in trading and clearing revenue was driven by a 7.7% decline in total equity derivatives volumes, mainly from declines in volumes of our GIFT Nifty, FTSE China A50 and Nikkei 225 index futures contracts, partially offset by higher volumes of our FTSE Taiwan index futures contracts. Excluding Nifty, trading and clearing revenue increased 0.5%.  Average Fees Average fee per contract for Equity, Currency and Commodity derivatives was 4.3% lower at S$1.54 (S$1.61) mainly driven by decline in average fee of our GIFT Nifty index futures contracts, due to the reclassification of NSE fee arrangement from expense to revenue as part of GIFT Connect. On a pro forma basis, FY2024 average fee per contract declined at a lower rate of 1.1% to S$1.54 (S$1.56). Platform and Others  Platform and Others revenue increased 5.6% to S$240.2 million (S$227.4 million) and accounted for 19.5% (19.0%) of total revenue.  Market data revenue: S$47.9 million, up 9.0% from S$44.0 million Connectivity revenue: S$77.2 million, up 9.0% from S$70.8 million Indices and other revenue[8]: S$115.1 million, up 2.2% from S$112.6 million   The increase in Market data revenue was mainly driven by repricing and increase in number of data licence subscribers.  The increase in Connectivity revenue was mainly due to repricing and higher number of subscription of our co-location services. Indices and other revenue increased mainly due to higher revenue contribution from Index Edge, Baltic Exchange and EMC, partially offset by decline in revenue from Scientific Beta.  Expenses Overview Total expenses increased 3.4% to S$625.3 million (S$604.9 million), mainly from higher staff costs and one-time provision to fund initiatives targeted at improving the vibrancy of the Securities Market, offset by lower processing and royalties and professional fees.  Adjusted total expenses increased 2.5% to S$604.0 million (S$589.3 million), excluding the one-time provision, amortisation of purchased intangible assets, and others. We have been prudent in managing our cost base even as we invested for growth, particularly in the OTC FX business. Our Group expenses have grown in line with our medium-term guidance of mid-single digit percentage CAGR over the past three years. We expect FY2025 expenses (excluding transaction-based expenses, i.e. processing and royalties) to grow 2-4% year-on-year. This will be achieved by measured pace of headcount growth, improving operational efficiency and realising savings from the completion of the migration of our OTC FX data centre. Non-operating Items Non-operating items were higher at S$117.1 million (S$99.8 million), driven largely by fair value gain from our investment in 7Ridge and higher net interest income, partially offset by higher impairment losses. Capital Expenditure Overview Total capital expenditure was S$66.0 million (S$59.4 million). These investments include modernisation of our technology infrastructure and consolidation of our office spaces. FY2025 capital expenditure is expected to be S$70-75 million as we invest in the modernisation of our securities system and infrastructure upgrade. Beyond FY2025, capital expenditure is expected to further increase due to continued investments into the modernisation of our exchange trading and clearing platforms, and data centre. Over the next cycle, capital expenditure is anticipated to remain below the historical average of 7% of Group revenue. [1] Please refer to Section 21(b) of our financial results for further disclosure on the restatement to the presentation of income statement and segment information.  [2] Includes associated treasury income.  [3] CAGR computed based on FY2024 FICC revenue including EMC and Baltic Exchange for a like-for-like comparison to FY2021. [4] Excluding transaction-based expenses i.e. processing and royalties. [5]The main change in the FICC segment in the new presentation format is the reclassification of revenue streams from EMC and Baltic Exchange to Platform and Others. [6] Cash Equities include ordinary shares, real-estate investment trusts and business trusts. [7] Other Products include structured warrants, exchange-traded funds, daily leverage certificates, debt securities and American depository receipts. [8] Includes revenues from Scientific Beta, Index Edge, EMC and Baltic Exchange, as well as membership-related fees.

Derivatives volume rises as global investors turn to our marketplaces to manage risk amid heightened volatility SDAV growth and STI outpace peers across Southeast Asia   Singapore Exchange (SGX Group) today released its market statistics for July 2024. Activity in SGX Group’s marketplaces increased across asset classes as global investors managed portfolio risks in response to manifold economic and political developments during a volatile month. Derivatives traded volume gained 15% year-on-year (y-o-y) to 23.5 million contracts. Towards the end of July, SGX Group’s Japan-access derivatives suite enabled market participants to manage risk around Japan’s monetary policy decisions. As the Bank of Japan (BOJ) raised its benchmark interest rate and announced plans to slow its monthly bond purchases, the volume of SGX three-month Tokyo Overnight Average (TONA) Futures topped 532 lots following the contract’s debut on 29 July, while month-end open interest (OI) in SGX Mini Japanese Government Bond (JGB) Futures rose 21% month-on-month (m-o-m). In addition, the pioneering SGX Nikkei 225 Index Futures saw 52,504 lots (US$6.8 billion notional) traded on 31 July – up 36% over the daily average for the month. Key highlights: Record FX futures volume: total futures traded volume on SGX FX climbed 44% y-o-y in July to 4.8 million contracts, an all-time high. Gains were led by SGX USD/CNH FX Futures – the world’s most widely traded international renminbi futures – with volume up 40% y-o-y at a record 2.9 million contracts, while SGX INR/USD FX Futures volume increased 48% y-o-y to 1.6 million contracts. Anticipation of rate decisions by the BOJ and the Federal Reserve, as well as uncertainties over the U.S. presidential elections, fuelled volatility and bolstered portfolio hedging. New interest-rate hedging tools with focus on central banks: SGX Fixed Income launched three-month TONA and Singapore Overnight Rate Average (SORA) Futures on 29 July, as investors seek more accessible and cost-effective tools to hedge and trade fluctuations in interest rates. The contracts build upon SGX’s offering of long-term interest rate futures comprising 10-year Full-Sized and Mini JGB futures. Broad-based commodities gains, with record dairy OI: Commodity derivatives traded volume rose 20% y-o-y in July to 5.1 million contracts, with bellwether iron ore derivatives volume up 22% y-o-y on elevated risk management amid diverse views on China’s growth outlook. Over the first seven months of 2024, 13.3 million metric tonnes (MT) of petrochemicals derivatives have traded on SGX Commodities, close to the 13.4 million MT cleared in all of 2023. Dairy derivatives OI set a single-day record of 171,335 lots on 16 July, rounding off the month with a record average of 106,386 lots. Highest SIMSCI OI notional value in more than four years: OI in SGX MSCI Singapore Index Futures rose 42% y-o-y in July to 221,551 lots, with notional value surpassing US$5 billion for the first time since January 2020 amid strong buyside interest in safe-haven markets. SGX FTSE Taiwan Index Futures volume gained 15% y-o-y, as overnight volumes climbed to a peak of 53,029 lots (US$4.1 billion notional) on 18 July following the release of chipmaker TSMC’s earnings. On SGX Equity Derivatives, total equity index futures volume increased 5% y-o-y to 13.1 million contracts. SDAV growth leads region: Securities daily average value (SDAV) rose 13% y-o-y and 4% m-o-m in July to S$1.2 billion against declines across Southeast Asia, with higher retail activity across stock segments. The benchmark Straits Times Index (STI) advanced 3.7% m-o-m to 3,455.94, also outpacing peers across ASEAN and Developed Asia, with year-to-date returns of 6.7%. During the month, Singapore’s stock market remained the second most-actively traded in Southeast Asia. Total securities market turnover value increased 23% y-o-y and 26% m-o-m to S$26.5 billion. Record REIT ETF turnover: The market turnover value of exchange-traded funds (ETF) jumped 48% m-o-m in July to S$404 million. For real-estate investment trust (REIT) ETFs, active participation from retail and robo-advisors lifted trading to a record S$131 million. Turnover of daily leverage certificates (DLC) surged 36% m-o-m to S$219 million, with Singapore-underlying DLCs showing the most increases. Mainboard listing: SGX Securities welcomed the secondary listing of Helens International Holdings Company Limited on Mainboard on 19 July. The company runs one of the largest bar chain networks in the PRC.   The full market statistics report can be found here.

The Council of Financial Regulators (CoFR) Insurance Forum has set a vision for New Zealand’s insurance sector. “Our vision is for an insurance sector that is forward-looking, fair, stable, competitive and efficient, promoting informed and confident participation by consumers and business,” says Clare Bolingford, Chair of the CoFR Insurance Forum and Executive Director – Regulatory Delivery at the Financial Markets Authority (FMA). The CoFR Insurance Forum is made up of representatives from the FMA, Reserve Bank of New Zealand (RBNZ), the Treasury, Ministry of Business, Innovation and Employment (MBIE), Commerce Commission, Natural Hazards Commission Toka Tū Ake (formerly Earthquake Commission), Insurance Council of New Zealand (ICNZ), Financial Services Council (FSC) and the Financial Services Federation (FSF). “With the increased frequency of weather-related events, supply chain challenges and cost of living pressures, it is more important than ever that financial regulators and the industry come together to help New Zealanders understand and manage their risk.” CoFR is taking a leading role to ensure financial regulators communicate regularly and are coordinated when it comes to regulation of the insurance industry. The CoFR agencies – the FMA, RBNZ, MBIE, the Treasury and the Commerce Commission – will continue to work closely with the insurance industry to ensure that the vision is achieved. “The vision will provide a common reference point for the Forum when discussing and prioritising issues, including insurance accessibility and affordability, insurance literacy, and building greater resilience,” Clare Bolingford said.