During the consolidated cumulative first quarter (from April 1, 2024 to June 30, 2024), JPX Group recorded operating revenue of ¥40,328 million (increased 9.1% from the same period of the previous fiscal year (i.e., year on year)), and operating expenses were ¥17,510 million (increased 2.2% year on year). As a result, JPX Group recorded operating income of ¥23,291 million (decreased 7.0% year on year) and income before income tax of ¥23,293 million (decreased 7.1% year on year). In addition, net income attributable to owners of the parent company after tax was ¥15,768 million (decreased 11.1% year on year). Click here for full details. Overview of Earnings for Q1 FY2024

ASIC has released a consultation paper on proposed rules to facilitate competitive outcomes in cash equity clearing and settlement (CS) services provided by the ASX Group. It is the first time ASIC is exercising its new powers under the competition in clearing and settlement (CS) reforms. The consultation seeks feedback on our proposals to: implement the 2017 Council of Financial Regulators Regulatory Expectations for Conduct in Operating Cash Equity Clearing and Settlement Services in Australia (Regulatory Expectations) as enforceable obligations; and impose additional requirements in several key areas, including technical interoperability, management of intragroup conflicts of interest, and external assurances on pricing and barriers to competition.   The proposed rules are intended to support the long-term interests of the Australian market by delivering efficient outcomes for investors consistent with those expected in a competitive environment, by: ensuring the ASX remains responsive to users’ evolving needs, including in relation to its governance framework; and providing access to its cash equity CS services on a transparent and non-discriminatory basis with terms and conditions, including pricing, that are fair and reasonable.   ASIC Commissioner Simone Constant said, ‘We are moving at pace to develop and implement these important rules, which require that during the CHESS replacement program and beyond, the ASX remains responsive to users and does not create barriers to competition. ‘Importantly, the rules also respond to industry concerns around ASX’s handling of the CHESS replacement program and will help to ensure that those mistakes are not repeated. ‘We look forward to engaging with industry on the proposed rules so the best outcome is achieved for the market, for listed companies and for investors and investment,’ Ms Constant said. Consultation Paper 379 CS Services Rules (CP 379) seeks feedback on our proposals to achieve these high-level outcomes, including through a number of additional obligations not expressly covered by the Regulatory Expectations. Background ASIC and the RBA are co-regulators of licensed clearing and settlement (CS) facilities. The RBA and ASIC have supervisory responsibilities for the four CS facilities in the ASX Group: two central counterparties – ASX Clear Pty Ltd and ASX Clear (Futures) Pty Ltd – and two securities settlement facilities – ASX Settlement Pty Ltd and Austraclear Limited. The RBA conducts annual assessments covering the CS facilities' observance of relevant Financial Stability Standards determined by the RBA. ASIC has separate, but complementary, responsibilities for the licensing and supervision of CS facilities licensed under Part 7.3 of the Act. ASIC is responsible for assessing whether a CS facility’s services are provided in a fair and effective way. ASIC also has regulatory responsibilities for operators of licensed markets, including the ASX market. In carrying out supervision of CS facilities, the RBA and ASIC work closely as appropriate. More information ASIC welcomes Ministerial determination to progress competition in clearing and settlement reforms Corporations and Competition (CS Services) Instrument 2024 Council of Financial Regulators Regulatory Expectations for Conduct in Operating Cash Equity Clearing and Settlement Services in Australia (cfr.gov.au)

On July 16, 2024, Peter Foo Moo Tan, President and CEO of United Overseas Bank (China) Limited (UOB (China)), Yang Rui Qi Mark, Deputy President and Global Markets Head of UOB (China), and their colleagues visited the Shanghai Gold Exchange (SGE) and held a meeting with SGE Chairman Yu Wenjian. At the meeting, the two sides engaged in in-depth discussions on how to better support the development of the real economy and the building of Shanghai into an international financial center, in particular the five key initiatives—technology finance, green finance, inclusive finance, pension finance, and digital finance. Both parties looked forward to strengthening communication and partnership, and contributing more to the high-quality growth of China’s gold market and connectivity between marketplaces in Southeast Asia.

I support the Foreign Boards of Trade (FBOT) Final Rule because it promotes access to markets for U.S. participants, competition, and liquidity.  I would like to thank Maura Dundon, Roger Smith, and Alexandros Stamoulis in the CFTC’s Division of Market Oversight for their work on this rulemaking. I will reiterate key points from my statement on the FBOT proposed rule. [1] As a CFTC Commissioner, I have made it clear that I believe in good policy that enables growth, progress, and access to markets.[2]  Accordingly, I am pleased to support Commission efforts that take a pragmatic approach to issues that hinder market access and cross-border activity.  I continue to believe that this rulemaking exemplifies policy that ensures a level playing field, and I applaud this step in the right direction for market structure. FBOTs have been a critical piece of the CFTC’s markets for decades and provide access for U.S. market participants to non-U.S. markets in realization of the global economy and international business.[3]  The main substantive amendment in the FBOT Final Rule is to Regulation 48.4, which will now include introducing brokers (IBs)[4] as a permissible intermediary, in addition to futures commission merchants (FCMs), commodity pool operators (CPOs), and commodity trading advisors (CTAs), to enter orders on behalf of customers or commodity pools via direct access on a registered FBOT.[5]  I believe that the FBOT Final Rule will provide more choice in brokers and broker arrangements for U.S. market participants that trade foreign futures and ensure that appropriate customer protections are in place. As sponsor of the CFTC’s Global Markets Advisory Committee (GMAC),[6] I have devoted a significant part of my Commissionership to supporting solutions that will enhance the resiliency and efficiency of global markets.[7]  The FBOT Final Rule is policy that mitigates market fragmentation and the associated impact on liquidity, and promotes the overall competitiveness of our derivatives markets.  I am pleased to support the FBOT Final Rule. [1] Statement of Commissioner Caroline D. Pham in Support of Foreign Board of Trade Proposal (Feb. 20, 2024), https://www.cftc.gov/PressRoom/SpeechesTestimony/phamstatement022024. [2] See, e.g., Keynote Address by Commissioner Caroline D. Pham, 98th Annual Convention of the American Cotton Shippers Association (June 22, 2022), https://www.cftc.gov/PressRoom/SpeechesTestimony/opapham2; Statement of Commissioner Caroline D. Pham on Staff Letter Regarding ADM Investor Services, Inc. (June 16, 2023), https://www.cftc.gov/PressRoom/SpeechesTestimony/phamstatement061623. [3] While FBOTs initially had operated pursuant to no-action relief, in 2011, following the Dodd-Frank Wall Street and Consumer Protection Act of 2010, the Commission began registering FBOTs.  See Registration of Foreign Boards of Trade, Final Rule, 76 FR 80674 (Dec. 23, 2011), https://www.federalregister.gov/documents/2011/12/23/2011-31637/registration-of-foreign-boards-of-trade. [4] The Commission generally defines an IB as an individual or organization that solicits or accepts orders to buy or sell futures contracts, commodity options, retail off-exchange forex or commodity contracts, or swaps, but does not accept money or other assets from customers to support these orders.  Commodity Exchange Act (CEA) Section 1a(31); 17 CFR 1.3(mm).  The Commission registers IBs under CEA Section 4d(g) and CFTC Regulation 3.4(a).  7 U.S.C. 6d(g) and 17 CFR 3.4(a). [5] 17 CFR 48.4. [6] CFTC Global Markets Advisory Committee, https://www.cftc.gov/About/AdvisoryCommittees/GMAC.  See Commissioner Pham Announces New Members and Leadership of the CFTC’s Global Markets Advisory Committee and Subcommittees (June 30, 2023), https://www.cftc.gov/PressRoom/PressReleases/8740-23. [7] E.g., Achieving Growth and Progress: Statement of Commissioner Caroline D. Pham at the Global Markets Advisory Committee June 4 Meeting (June 4, 2024), https://www.cftc.gov/PressRoom/SpeechesTestimony/phamstatement060424; Opening Statement of Commissioner Caroline D. Pham before the Global Markets Advisory Committee (Feb. 13, 2023), https://www.cftc.gov/PressRoom/SpeechesTestimony/phamstatement021323.  To date, the GMAC has advanced 13 recommendations and reports to the Commission on a broad set of significant global markets issues, including U.S. Treasury market liquidity, well-functioning repo and funding markets, capital and margin requirements, exchange volatility controls, T+1 securities settlement, improved collateral management, central counterparty (CCP) default simulation, streamlining trade reporting data to monitor systemic risk, and a foundational digital asset taxonomy to facilitate alignment in regulation across jurisdictions. RELATED LINKS CFTC Press Release No. 8935-24

The Commodity Futures Trading Commission today announced it approved final rules amending Part 48 of its regulations. The final rules permit a foreign board of trade (FBOT), registered with the CFTC, to provide direct access to its electronic trading and order matching system to an introducing broker (IB), located in the United States and registered with the CFTC, for the submission of customer orders to the FBOT’s trading system for execution. The final rules also establish a procedure for an FBOT to request revocation of its registration and remove certain outdated references to “existing no-action relief” in Part 48. The final rules are effective 30 days from the date of publication in the Federal Register. RELATED LINKS Part 48 Final Rule Statement of Commissioner Caroline D. Pham

The U.S. Department of the Treasury today announced its current estimates of privately-held net marketable borrowing[1] for the July – September 2024 and October – December 2024 quarters.  During the July – September 2024 quarter, Treasury expects to borrow $740 billion in privately-held net marketable debt, assuming an end-of-September cash balance of $850 billion.[2]  The borrowing estimate is $106 billion lower than announced in April 2024, largely due to lower Federal Reserve System Open Market Account (SOMA) redemptions and a higher beginning-of-quarter cash balance.[3] During the October – December 2024 quarter, Treasury expects to borrow $565 billion in privately-held net marketable debt, assuming an end-of-December cash balance of $700 billion.[4] During the April – June 2024 quarter, Treasury borrowed $234 billion in privately-held net marketable debt and ended the quarter with a cash balance of $778 billion. In April 2024, Treasury estimated borrowing of $243 billion and assumed an end-of-June cash balance of $750 billion. Privately-held net marketable borrowing was $9 billion lower largely because higher net cash flows and lower SOMA redemptions were partially offset by a $28 billion higher ending cash balance.   Additional financing details relating to Treasury’s Quarterly Refunding will be released at 8:30 a.m. on Wednesday, July 31, 2024.    ###         [1] Privately-held net marketable borrowing excludes rollovers (auction “add-ons”) of Treasury securities held in the SOMA but includes financing required due to SOMA redemptions.  Secondary market purchases of Treasury securities by SOMA do not directly change net privately-held marketable borrowing but, all else equal, when the securities mature and assuming the Federal Reserve does not redeem any maturing securities, would increase the amount of cash raised for a given privately-held auction size by increasing the SOMA “add-on” amount. Additionally, buybacks are not expected to significantly affect privately-held net marketable borrowing as new issuance replaces securities that are bought back. 2 [3] On May 1, 2024, the Federal Open Market Committee announced that beginning on June 1 it would reduce the cap on redemptions of Treasury securities from the SOMA portfolio from $60 billion per month to $25 billion per month.  [4] Treasury’s assumed end-of-December cash balance $700 billion is also its assumed cash balance upon the expiration of the debt limit suspension on January 1, 2025. This assumption is based on expected cash flows under Treasury’s cash management policies and is consistent with its authorities and obligations, including those under the Fiscal Responsibility Act of 2023.  The actual cash balance on January 1, 2025, may vary from this assumption based on changes to cash flows near the end of 2024. LATEST NEWS July 29, 2024 Treasury Announces Marketable Borrowing Estimates Economy Statement by Eric Van Nostrand, performing duties of Assistant Secretary for Economic Policy for the Treasury Borrowing Advisory Committee July 27, 2024 Remarks by Secretary of the Treasury Janet L. Yellen at the Goeldi Museum in Belém, Brazil Secretary of the Treasury Janet L. Yellen Announces the Amazon Region Initiative Against Illicit Finance to Combat Nature Crimes Remarks by Secretary of the Treasury Janet L. Yellen Announcing the Amazon Region Initiative Against Illicit Finance in Belém, Brazil  

INTRODUCTION Throughout the second quarter of 2024, U.S. economic data continued to show robust growth in output and labor markets, even as inflation slowed further. Headline GDP growth accelerated to 2.8 percent over the past three months, supported by strong underlying demand from household consumption and business investment.  Although the pace of job growth moderated somewhat relative to previous years, it remains historically healthy, and the unemployment rate remains low.  Moreover, more Americans continue to enter the labor force, and the share of workers aged 25 to 54 rose to its highest level of the labor force in over two decades—contributing to the supply-side expansion that has strengthened U.S. growth since the pandemic. Meanwhile, inflation continued to slow in the second quarter. While core inflation remains somewhat elevated, critical prices pressures have moderated—particularly housing rental prices, which have lifted core inflation in previous years.  In addition, price growth for core services excluding rent of housing decelerated markedly as lower airfares largely offset higher prices for medical care and motor vehicle insurance, maintenance, and repair. Although further moderation is needed before core inflation is consistent with the Federal Reserve’s target, the data remain consistent with the path to a soft landing.  At the same time, the Biden-Harris Administration continues to focus on its investments to grow the economy beyond this cycle.  By expanding our nation’s productive capacity—through significant investments in clean energy, manufacturing capacity, and infrastructure—we aim to build further resilience in the U.S. economy to ensure the modern supply-side expansion of the past few years continues in the long run. REAL GROSS DOMESTIC PRODUCT (GDP) Real GDP growth accelerated to 2.8 percent in the second quarter of 2024 from the first quarter’s 1.4 percent pace.  Faster growth reflected a pick-up in private consumption and business fixed investment, a stronger build in private inventories, and more government spending—particularly national defense investments.  Domestic forces continue to form the bedrock of the economy’s performance, with firm growth in private domestic final demand (PDFP) for the fourth consecutive quarter (see Table 1 – Real Gross Domestic Product). PDFP—composed of personal consumption expenditures (PCE), business fixed investment (BFI), and residential investment—measures the economy’s capacity to generate self-sustaining growth from domestic sources.  PCE and BFI growth each accelerated in the second quarter, but residential investment turned from robust growth to a modest contraction.  On balance, PDFP added 2.2 percentage points to topline real GDP growth for the second straight quarter, signaling a foundation for continuing economic strength going into the second half of 2024. Personal consumption of goods and services made the largest contribution of any single component to GDP growth, adding 1.6 percentage points to headline growth. Purchases of goods rebounded after the first quarter’s decline, adding 0.6 percentage points to GDP growth. Although growth of consumption of services slowed, it still added just over a full percentage point to real GDP, accounting for roughly 65 percent of PCE’s contribution to topline growth. BFI grew at a strong pace in the second quarter, accelerating from the first quarter’s solid pace; on balance, BFI added 0.7 percentage points to GDP growth. Investment in real equipment was significantly stronger while spending on intellectual property products was firm.  Investment in structures has soared over the past few years amid a boom in construction for manufacturing facilities; it slowed somewhat in the second quarter but remains at historic heights. Residential investment, the final component of PDFP, declined 1.4 percent in the second quarter, largely reflecting a downturn in the construction of single-family homes. Still, this was a relatively small retrenchment after residential investment’s 16 percent surge in the first quarter.  On balance, this category posed a scant 0.05 percentage point drag on GDP growth in the second quarter and has risen nearly 6 percent over the past four quarters.   Of the other components of GDP, government spending and investment as well as the change in private inventories made positive contributions to the economy’s expansion in the second quarter, while net exports subtracted from growth.  Public sector spending—the acceleration of which was largely due to higher investment in national defense by the federal government—added 0.5 percentage points to GDP growth.  At the same time, private net inventory investment strengthened, particularly nondurable goods inventories at wholesalers as well as inventories at retail motor vehicle and parts dealers; as a result, the change in private inventories swung from a 0.4 percentage point subtraction in the first quarter to a 0.8 percentage point contribution in the second.  By contrast, net exports constrained economic growth as the pace of import growth far exceeded that of exports, leaving the trade deficit at its widest in two years.  As a result, net exports subtracted 0.7 percentage points from GDP growth in the second quarter. LABOR MARKETS This year’s second quarter witnessed improved labor market balance as the gap between labor demand and supply narrowed.  Although the average pace of job creation slowed in the past three months, it was accompanied by increased labor force participation rates (LFPRs) for prime-age (ages 25-54) workers (see Table 2 – Labor Market Indicators). Payroll job growth slowed in the second quarter of 2024.  Employers added an average of 177,000 jobs per month in the second quarter, slowing from the first quarter average of 267,000 jobs per month.  The second quarter average was still an historically robust pace of job growth, and it remains consistent with recent estimates of the break-even pace needed to maintain a stable unemployment rate. Recent analysis has raised the estimated break-even pace of job growth from 70,000 to 90,000 before the pandemic to 175,000 to 230,000, reflecting faster-than-usual population growth. At the end of the second quarter, the unemployment rate pushed above the 4 percent mark for the first time since November 2021.  From March to June, the unemployment rate increased 0.3 percentage points to 4.1 percent.  Yet, despite the moderate increase, the unemployment rate remains near historically low levels and below most estimates of the non-cyclical unemployment rate—that is, the stable rate that would persist if the economy were growing at potential and without labor market imbalances.  Moreover, weekly data since June suggest that unemployment remains near historically low levels early in the third quarter.  The level of initial claims remains in line with that prevailing at the end of February 2020—just before the start of the COVID-19 pandemic in the United States—while the level of continuing claims is a mere 4 percent above that in late February 2020. Labor force participation grew in line with population over the second quarter.  The overall LFPR averaged 62.6 percent of the population through April, May, and June, holding near the averages in the first quarter and 2023.  Even so, the stable headline LFPR masked a shift among subgroups.  On the one hand, the average LFPR for workers aged 55 or older decreased by 0.2 percentage points to 38.3 percent in the second quarter.  By contrast, the LFPR for prime-age workers averaged 83.6 percent in the second quarter, up by 0.2 percentage points from the first quarter.  This was the highest prime-age LFPR since 2002. Meanwhile, labor demand softened in the second quarter.  Through May, job openings eased to a three-year low, and the ratio of job openings (or vacancies) to unemployed workers declined to 1.22 openings per unemployed worker—on a par with the pre-pandemic high of 1.24.  The vacancies ratio has gradually declined since March 2022, when it stood at a record of 2.03 vacancies per unemployed person, attesting to a significant loosening in labor market conditions.   With improving supply of labor (via increased prime-age labor force participation and above-trend population growth) and declining demand (as measured by job openings), conditions are becoming more balanced, leaving labor markets healthy and relatively strong. INFLATION Inflation has eased significantly since its mid-2022 peak, and this trend resumed in the second quarter of 2024.  As measured by the consumer price index (CPI), headline inflation over the year through June 2024 had slowed to 3.0 percent—down from the June 2022 peak of 9.1 percent.  Moreover, during the second quarter, the average monthly rate of inflation during the second quarter was just 0.1 percent (or 1.1 percent at an annual rate), slowing from an average 0.4 percent per month (4.6 percent annualized) during this year’s first quarter (see Table 3 – Inflation and Wage Growth Indicators). Energy price inflation turned negative in the second quarter.  Prices dropped 1.0 percent, on average, after rising 0.8 percent on average in the first quarter.  Prices were constrained by market perceptions that slower global economic growth would lead to reduced demand for energy, despite heightened geopolitical tensions and the commitment by the Organization of the Petroleum Exporting Countries and allies (OPEC+) to extend production cuts. After remaining stable in the previous three quarters at 0.2 percent, average monthly food inflation slowed to 0.1 percent in the second quarter.  Although this rate is slower than rates prevailing before the pandemic, surveys of consumers’ moods suggest that high price levels for food have adversely affected household economic sentiment, notwithstanding substantially slower rates of food inflation.   Core inflation decelerated in the second quarter to an average of 0.2 percent per month (2.1 percent at an annual rate), half the 0.4 percent average per month (4.5 percent annualized) in the first quarter of this year.  The twelve-month core inflation rate in June was 3.3 percent, one-half the peak rate in the autumn of 2022 and the lowest annual rate in over three years. Core goods prices declined for the fourth consecutive quarter, deflating 0.1 percent on average in the second quarter.  On a year-over-year basis, core goods prices were down 1.7 percent through June 2024, the steepest decline in about two decades. Inflation for rent of housing services (rent of primary residence and owners’ equivalent rent) slowed somewhat in the second quarter.  Prices rose just 0.4 percent on average over the last three months, near the bottom of the 0.4 percent to 0.5 percent range observed since May 2023. After ramping up in the first quarter, inflation for non-housing core services decelerated sharply in the second quarter as lower prices for airfares helped offset still-elevated inflation for medical care and motor vehicle insurance, maintenance, and repair.   The Federal Reserve’s preferred measure of inflation, growth in the PCE price index, similarly slowed in the second quarter and is approaching the target rate of 2 percent.  Over the year ending June, PCE inflation was 2.5 percent—or 4.6 percentage points below its June 2022 peak.  Annual core PCE inflation was barely higher than headline inflation at 2.6 percent in June 2024.  Core inflation peaked earlier than headline in February 2022 at 5.6 percent. Inflation as measured by the PCE price index has notable differences in weights and methodologies.  Historically, twelve-month CPI inflation has exceeded PCE inflation by about 0.4 percentage points on average.  In the second quarter, annual CPI inflation was 0.6 percentage points higher than PCE inflation, reflecting in part the larger weight assigned to owners’ equivalent rent in the CPI. HOUSING MARKETS Housing market activity slowed on balance in the second quarter.  Most measures of new residential construction weakened further in the second quarter, though completion rates rose (see Table 4 – Housing Construction). Total building permits—which precede future home construction—declined on average in the second quarter, though to a lesser extent than in the first quarter.  Growth in single-family permits declined more steeply in the second quarter, while growth in multi-family permits was positive. Even so, permit issuance in the multi-family sector has been trending lower since the latter half of 2022; the level in June 2024 was about two-thirds of the level two years earlier. Total housing starts turned positive in the second quarter, reflecting a surge in growth in the volatile multi-unit sector (after a very sharp drop in the first quarter). The decline in single-family starts accelerated in the second quarter. The overall inventory of homes under construction fell more sharply at the end of the second quarter, as inventories under construction began to fall in the single-family sector. By the same token, total housing completions turned positive in the single-family as well as multi-family sectors.   Both existing and new home sales dropped over the second quarter, owing to the persistence of elevated mortgage rates and home prices.  Meanwhile, the supply of homes arriving on the market for sale rose more than sales, which lifted the inventory-to-sales ratios for new and existing homes (see Table 5 – Home Sales & Inventories). Sales of total existing homes turned negative in the second quarter after an upturn in the first quarter and were down 5.4 percent over the year through June 2024. Nonetheless, the slower pace of sales helped boost the inventory of homes for sale over the quarter to an average of 3.8 months of sales, nearing the pre-pandemic, five-year average inventory-to-sales ratio of 4.2 months. New home sales resumed a downward trend in the second quarter, the second net quarterly decrease in two years.  Due in part to the lower pace of sales, the inventory-to-sales ratio for new homes increased modestly to an average of 8.7 months, remaining well above the pre-pandemic (2015-2019) average of 5.6 months.   Home purchase prices and rental inflation slowed in the second quarter.  Even so, elevated home price levels continue to undermine affordability (see Table 6 – Shelter Prices). The S&P/Case-Shiller’s national home price index slowed in April (last available data as of July 29), as did the pace of house price growth in the FHFA purchase-only index.  Price levels remained elevated, however.  By either index, house prices were roughly 50 percent higher in April 2024 than at the end of 2019, while real disposable personal income increased roughly 8 percent over the same period. For renters, growth of the CPI for rent of primary residence moderated in the second quarter, but the Zillow Observed Rent Index accelerated significantly.  Paces for both measures remained rapid. Despite this mixed picture, a relatively new research series created by the Bureau of Labor Statistics—which has been shown to lead the CPI for primary rent by about a year—showed an outright decline in renters’ shelter costs in the second quarter. This quarterly series better reflects prices renters would face if they changed housing units every quarter.   RISKS TO THE OUTLOOK Inflation:  Inflation has fallen substantially from the highs of mid-2022, and we expect it to continue to ease further and return to historical norms.  However, risks remain to the inflation outlook on both sides.  Continued strong demand growth without comparable supply expansion could push inflation above consensus forecasts—as could additional supply-chain disruptions from new geopolitical developments. Alternatively, a faster-than-expected cooling in the labor market and in economic activity could bring inflation down faster—but with greater cost for American households.  Geopolitical instability:  Russia’s war in Ukraine and the ongoing conflict in the Middle East continue to add uncertainty to the medium-term outlook.  The uptick in global shipping costs, if exacerbated, could further complicate the supply chain instability that has otherwise largely resolved in the wake of the pandemic.  Fortunately, major impacts to the U.S. economy have not materialized to date, but these remain important risks to monitor.  Consumer slowdown and labor market cooling:  Strong consumption growth in 2023 and in the first half of 2024 has supported GDP growth, fueled by strong labor markets and real income growth.  Although households have drawn down much of their excess savings from the pandemic period, debt burdens remain low relative to historical levels.  While growth in real incomes should continue to support households’ consumption, a significant cooling in labor markets could slow income growth, reduce consumption, and further slow the economy.  This concern is particularly notable among younger and lower-income households with rising credit card delinquency and default rates—although, in general, delinquencies still reflect normalization from the low levels that persisted during the pandemic. CONCLUSION The American economy remains strong, with a healthy labor market and persistently easing inflation. Just a few years ago, economic forecasters did not expect that such a combination of persistently strong demand and moderating inflation was likely—and, in many cases, even possible.  But over the past three years, the Biden-Harris Administration has made significant investments to lower costs, boost economic potential, and make our economy more resilient to risks.  The outperformance of the American economy in the first half of 2024 shows these investments are paying off. TABLE 1 - REAL GROSS DOMESTIC PRODUCT   Contribution to GDP Growth(percentage points) 2024Q1 2024Q2 2023Q4/Q4 Real GDP Growth (Δ%, annual rate) 1.4 2.8 3.1 Private Domestic Final Purchases 2.2 2.2 2.5 Personal Consumption Expenditures 1.0 1.6 1.9 Business Fixed Investment 0.6 0.7 0.6 Residential Investment 0.6 -0.1 0.0 Total Government Purchases 0.3 0.5 0.8 Net Exports (billions of real (2017) dollars) -0.7 -0.7 0.2 Change in Private Inventories (billions (2017) dollars) -0.4 0.8 -0.4 Source. Bureau of Economic Analysis, Gross Domestic Product (Advance Estimate), Second Quarter 2024. TABLE 2 - LABOR MARKETS Establishment Survey Average Monthly Change(thousands) 2024Q1 2024Q2 CY 2023 Total Payroll Employment 267 177 251 Private Sector 203 146 192 Government 64 32 59 Household Survey Monthly Average 2024Q1 2024Q2 CY 2023 Unemployment Rate (% of Total Labor Force) 3.8 4.0 3.6 Labor Force Participation Rate (% Total Population) 62.6 62.6 62.6 Prime-Age (Ages 25 to 54) 83.4 83.6 83.3 Job Openings and Labor Turnover Survey Monthly Average 2024Q1 2024Apr & May CY 2023 Job Openings (Millions of Vacancies) 8.8 8.1 9.4 Vacancies per Unemployed Person 1.4 1.3 1.5 Sources. Bureau of Labor Statistics, The Employment Situation - June 2024; Job Openings and Labor Turnover - May 2024. TABLE 3 - INFLATION Inflation Average Monthly Percent Change 12-MonthPercent Change 2024Q1 2024Q2 2023Dec/Dec Consumer Price Index (CPI) 0.4 0.1 3.4 Foods 0.2 0.1 2.7 Energy 0.8 -1.0 -2.0 Core CPI (ex. Food and Energy)  0.4 0.2 3.9 Core Goods -0.1 -0.1 0.2 Rent of Shelter2 0.5 0.4 6.4 Core Services ex. Rent of Shelter2 0.7 0.1 3.9 PCE Price Index 0.4 0.1 2.6 Core PCE Price Index 0.4 0.2 2.9 Sources. Bureau of Labor Statistics, Consumer Price Index - June 2024. Bureau of Economic Analysis, Personal Income and Outlays, June 2024.1 For CPI, 12-month growth is not seasonally adjusted.2 Imputed from CPI Data. TABLE 4 - HOUSING CONSTRUCTION New Residential Construction Average Monthly Percent Change 12-MonthPercent Change 2024Q1 2024Q2 2023Dec/Dec Building Permits, Total -1.0 -0.7 9.3 Single-Family -1.1 -1.5 36.9 Housing Starts, Total -6.1 1.4 17.0 Single-Family -1.2 -2.0 22.6 Units Under Construction, Total (end of month) -0.8 -1.6 -0.8 Single-Family 0.7 -1.2 -10.3 Housing Completions, Total -1.4 4.7 12.3 Single-Family -2.8 3.4 3.4 Sources. Census Bureau, Monthly New Residential Construction, June 2024. TABLE 5 - HOME SALES & INVENTORIES Homes Sales Average Monthly Percent Change 12-MonthPercent Change 2024Q1 2024Q2 CY2023 Total Existing Homes 2.8 -2.7 -5.8 New Single-Family Homes 1.5 -3.3 3.5 Inventories for Sale Inventories of Homes Available at Monthly Sales Pace 2024Q1 2024Q2 CY2023 Total Existing Homes 3.0 3.8 3.1 New Single-Family Homes 8.4 8.7 7.8 Sources. Census Bureau, Monthly New Residential Sales, June 2024. National Assocation of Realtors, Existing-Home Sales. TABLE 6 - SHELTER PRICES Home Prices AnnualizedPercent Change 12-MonthPercent Change 2024Q1 2024Apr 2023Dec/Dec S&P Core Logic Case-Shiller National HPI1,2 4.9 3.2 5.6 FHFA Purchase-Only HPI1 5.2 2.8 6.8 Rent Prices AnnualizedPercent Change 12-MonthPercent Change 2024Q1 2024Q2 2023Dec/Dec CPI Rent of Primary Residence2 5.0 4.1 6.5 Zillow Observed Rent Index 4.3 7.2 3.4 Research Series: CPI New Tenant Rent3 2.3 -1.1 2.8 Sources. Standard & Poor's, S&P CoreLogic Case-Shiller Home Price Indices. Federal Housing Financing Agency, Home Price Index (HPI) Monthly Report. Zillow, Housing Data. Bureau of Labor Statistics, Consumer Price Index - June 2024. Bureau of Labor Statistics, Price and Index Number Research, New Tenant Rent Index.1 Annualized monthly rate through April. S&P and FHFA house price indices will be published on July 30.2 12-month percent change, not seasonally adjusted.3 Not seasonally adjusted. Quarterly growth rates are 4-quarter percent changes.

The Financial Services Institute (FSI) and Securities Industry and Financial Markets Association (SIFMA) released the following statement today regarding a decision in the Northern District of Texas granting a stay in a federal lawsuit challenging the Department of Labor’s fiduciary rule: “Today’s decision rightly prevents the Department of Labor’s rule from taking effect as the court continues to weigh the merits of the case. The finalized rule unlawfully expands the definition of a ‘fiduciary’ and jeopardizes investors’ access to advice and education.” In their filing in June, FSI and SIFMA asked the Court to vacate and set aside the 2024 Rule and declare it to be in excess of the DOL’s statutory authority, arbitrary and capricious, and otherwise not in accordance with law. FSI and SIFMA’s full plaintiff-intervenors’ complaint filed in this case, American Council of Life Insurers, et al. v. United States Department of Labor, can be found here: https://www.sifma.org/resources/submissions/complaint-filed-in-the-u-s-district-court-for-the-northern-district-of-texas-worth-division/

The Bermuda Stock Exchange (“BSX”) advises that the BSX will be closed on Thursday, 1st and Friday, 2nd August 2024, for the Emancipation Day and Mary Prince Day (collectively known as “Cup Match”) public holidays in Bermuda. The BSX will reopen on Monday, 5th August 2024.  

This brings to 15 the number of companies that have started trading on this BME market so far this year   The Board of Directors of BME Scaleup has approved the incorporation of Wellder Senior Assets SOCIMI, Mistral Iberia II SOCIMI and Lauthon Invest SOCIMI on 31st July, after analysing and studying all the documentation submitted by the companies and the favourable evaluation reports issued by the Market Coordination and Incorporations Committee. The Board of Directors of Wellder Senior Assets SOCIMI has taken a price of 1 euro per share as a reference for the start of trading, which implies a total valuation of the company of 93 million euros. The company's trading code will be "SCWEL" and its Registered is Renta 4 Corporate. Wellder Senior Assets SOCIMI is a SOCIMI born from the union of APG Group and Renta Corporación to create a portfolio of real estate assets in the "senior care" segment with special attention to their quality and ESG criteria. APG is the manager of the largest pension fund in the Netherlands, ABP. For its part, he Board of Directors of the Mistral Iberia II SOCIMI, has taken as a reference for the start of trading of the shares a price of €1.88 per share, which implies a total valuation of the company of €9.5 million. The company's trading code will be “SCMIB” and its Registered Advisor is ARMABEX Asesores Registrados, part of the ARMANEXT Group.. The company is an asset-holding company that owns a portfolio of urban real estate. Finally, the Board of Directors of Lauthon Invest SOCIMI has taken a reference price of €5.20 per share, taking into account the valuation report carried out by an independent expert, which implies a total valuation of the company of 26 million euros. The company's trading code will be “SCLIS” and its Registered Advisor is ARMABEX Asesores Registrados, part of the ARMANEXT Group. LAUTHON INVEST SOCIMI is a company specialising in the holding and operation of logistics real estate assets. The main objective is to lease real estate to first class clients on a long-term basis in order to maximise medium-term income and return on portfolio investments. The Information Document of Wellder Senior Assets SOCIMI, Mistral Iberia II SOCIMI and Lauthon Invest SOCIMI is available on the BME Scaleup website, where you can find all the information about the company and its business. BME Scaleup market is aimed especially at scaleups, companies with a proven business model, in an accelerated growth phase for at least three years, with a minimum turnover of one million euros and/or an investment of at least that amount. This market, which offers the necessary transparency to investors and simplifies the incorporation requirements for companies, is also open to other types of companies such as SMEs, SOCIMIs or family businesses seeking a first contact with the capital markets. Among the advantages of BME Scaleup for companies are its ability to boost growth with funds for financing, obtain greater prestige and brand visibility, the possibility of expanding its investor base, the boost to inorganic growth and greater ease of attracting and retaining talent. To be listed on this market, a company must be a public limited company, have a board of directors, be accompanied by an advisor registered in the market and publish audited annual accounts. It will not be necessary to have a liquidity provider or to comply with a minimum free float. BME Scaleup already has 14 Registered Advisors.

The Management Board of the Warsaw Stock Exchange has set the scheduled date for the production roll-out of GPW’s new trading system WATS at 10 November 2025. The decision is based on the recommendation of the GPW WATS Implementation Committee which is overseeing the preparations. 10 November 2025 is the scheduled date for the production roll-out of GPW’s system WATS The GPW WATS Implementation Committee is composed of representatives of exchange members, KDPW/KDPW_CCP and GPW   GPW’s new trading system WATS (Warsaw Automated Trading System) will bring multiple technological and operational benefits to the entire GPW Group. The GPW Management Board has accepted the recommendation of the GPW WATS Implementation Committee, comprised of representatives of exchange members, KDPW/KDPW_CCP and GPW and responsible for overseeing and coordinating all aspects of the system’s implementation. “The implementation of GPW’s new trading system WATS is a key step in the further development of the Warsaw Stock Exchange. Setting the roll-out date has been necessary to schedule preparatory and implementing activities on the part of GPW and other stakeholders. A specific date was expected by some market participants in order to optimally plan the necessary adaptation and preparation work,” said Sławomir Panasiuk, Vice-President of the GPW Management Board. The implementation timetable for all stakeholders, adjusted to the roll-out date, will be regularly monitored by the GPW WATS Implementation Committee as well as the GPW Management Board and Supervisory Board. GPW’s new proprietary trading system WATS is an innovative solution that will significantly improve the quality and efficiency of exchange operations by offering advanced functionalities and enhancing the security and reliability of trading. Based on state-of-the-art technology, the system is a key element of the GPW Group’s competitive advantage, enabling its further development and digital transition. More information on the GPW WATS and the implementation timetable is available on the website GPW WATS. *** The Warsaw Stock Exchange Group (GPW Group) operates trading platforms for shares, Treasury and corporate bonds, derivatives, electricity and gas, and provides indices and benchmarks including WIBOR and WIBID. The index agent FTSE Russell classifies the Polish capital market as a Developed Market since 2018. The markets operated by the GPW Group are the biggest in Central and Eastern Europe. For more information, visit www.gpw.pl  

The rules governing financial services could be streamlined to reduce burdens on businesses, following a review launched by the FCA. The move comes after the introduction of the Consumer Duty, which makes sure that businesses deliver good outcomes for consumers when they buy financial products and services. The regulator is calling on industry to identify rules which could be removed or simplified if they overlap with the Duty.  Reducing complexity of the FCA’s rulebook could lower costs for firms, encourage innovation and help support the risk appetite needed to support growth, ultimately boosting international competitiveness and the economy over the long-term.  Launching the review, Nikhil Rathi, chief executive of the FCA said:   'We are firmly committed to playing our part in supporting economic growth. The Consumer Duty marked a major shift for firms and consumers by setting higher and clearer standards of consumer protection and requiring firms to put their customers’ needs first.  'We now want to seize the opportunity of the Duty and the move to a clear outcomes-based approach to streamline our rulebook, lowering costs for businesses and supporting the competitiveness and growth of the economy.' Alongside the broad rule review announced today, the FCA is considering simplifying rules in the commercial insurance sector, a market worth over £15.5 billion in the UK.  The FCA is inviting views on whether changing how customers are categorised could significantly reduce the time needed to take on new customers, or renew their contracts, and allow products to be custom made. This would reduce regulatory costs and may increase the competitiveness of the commercial insurance market.   The launch of both reviews comes on the day the regulator publishes its first report dedicated to how it has taken forward its secondary objective to support UK competitiveness and economic growth over the medium to long-term. Recognising the vital role that the regulator plays in enabling new financial services firms to get off the ground, the FCA has improved its authorisation process with 98% of cases now assessed within statutory deadlines, up from 78.9% in Q1 of 2022/23.  Overseas wholesale financial firms wishing to operate in the UK can benefit from pre-application support from the FCA. The regulator has also completed the biggest reform to the listing rules in a generation.  The FCA continues to support innovation in financial markets, including the creation of a permanent Digital Sandbox, a testing environment that supports firms at the early stage of product development.   Today, the FCA has also confirmed that from 1 August, it will consult a new independent panel of experts when preparing cost benefit analyses. This applies to proposed regulations which have an estimated net annual direct cost to industry of £10m per year and above. Background Call for Input for the Review of FCA retail conduct requirements following introduction of the Consumer Duty. The Secondary International Competitiveness and Growth Objective (SICGO) report (PDF) Insurance competitiveness discussion paper  Information about the independent Cost Benefit Analysis Panel and the FCA’s framework for analysing the costs and benefits of its policies.  Find out more information about the FCA.

DFM’s total consolidated revenue rose by 40% to AED 305.7 million in the first half of 2024 In the first six months of 2024, DFM attracted 72,583 new investors, 85% of which were foreign investors, expanding the current investor base to more than 1.1 million Foreign investors contributed 50% of DFM’s trading activity during this period   Dubai Financial Market (DFM) today announced its consolidated financial results for the period ended 30 June 2024. Net profit before tax grew to AED 195.4 million, marking a significant 74% increase over the same period in 2023.  The first half of 2024 saw a increase in trading activity, higher trade values, and a wave of new investors. Additionally, DFM hosted the annual Capital Market Summit, attracting over 1,000 global delegates. The landmark event offered key insights into the future of finance, and underscoring DFM's status as a leading global listing venue. Commenting on DFM’s performance, H.E Helal Saeed Al Marri, Chairman of DFM, said: " We are proud to report a robust performance in the first half of 2024, reflecting the solid foundation we've built. The success of our Capital Market Summit underscores our commitment to fostering a dynamic marketplace that encourages global dialogue and collaboration. We will continue to deliver value for our stakeholders by focusing on innovation, strengthening our infrastructure, and diversifying our services and products offerings. These efforts reinforce the exchange’s position as a leading financial market in the region, solidifying Dubai's stature as a key player on the global financial stage.” Solid financial results  DFM’s total consolidated revenue rose by 40% to AED 305.7 million in the first half of 2024, up from AED 218.1 million in the same period of 2023. The revenue includes AED 154 million from operating income and AED 151.7 million from investment returns and other income. For the same period, the total expenses excluding tax increased to AED 110.3 million compared to AED 106 million in H1 2023.   Increase in trading metrics The first half of 2024 saw a significant boost in trading activity on the DFM, with the total number of trades reaching 1.07 million, reflecting a 22% increase compared to the same period in the previous year. Additionally, the total trading value rose by 4% to AED 48 billion. The DFM General Index declined marginally by 0.73%. Expanding investor base  In the first half of 2024, DFM attracted 72,583 new investors, 85% of which majority are from foreign countries. Institutional investors were particularly active, accounting for 66% of the trading value, with net purchases by foreign investors totaling AED 1.2 billion. DFM hosted its annual roadshow in London in June this year, in collaboration with HSBC’s GCC Exchanges Conference. The event further highlighted investment opportunities within Dubai's vibrant capital markets, featuring 14 leading issuers with a combined market capitalization AED 326 billion. This year’s edition facilitated 90 meetings resulting in over 270 interactions, offering global investors exclusive insights into the regions' investment opportunities. Successful IPO listings DFM achieved remarkable success in H1 2024, with its IPO listings, In March, Dubai's parking operator Parkin surged over 30% upon its public debut, achieving an unprecedented oversubscription level of approximately 165 times for all tranches combined, a record for the exchange. In May, Spinneys, a premium grocery retail operator, also went public with its offering oversubscribed by 64 times. The offering saw significant interest from retail investors, with the UAE Retail Offering being increased consequently. Market initiatives driving growth Further in the first half of the year, DFM announced several market initiatives to drive growth and innovation. ARENA by DFM, an innovative platform for IPOs, designed to facilitate growth opportunities for both companies and investors was announced in May this year. ARENA represents a pioneering approach to capital raising and investment within the MENA region, allowing a wide range of private companies to access capital through diverse assets, including equity and debt, with plans to introduce additional asset classes​​. Additionally, DFM introduced the enhanced iVestor App, underscoring its dedication to empowering investors with cutting-edge digital tools for financial management, making it more accessible, efficient, and engaging for retail investors​. These initiatives demonstrate DFM’s focus on innovation, strengthening infrastructure and fostering a vibrant and inclusive financial ecosystem for all stakeholders. Diverse Market Capitalization Market capitalization of DFM listed companies stands at AED 679 billion in H1 2024. Reflecting Dubai’s diverse GDP mix, the sector distribution by market capitalization stands as follows: Financials at 42%, Utilities at 20%, Real Estate at 18%, Industrials at 13%, Communication Services at 4%, with other sectors, including Consumer Staples, making up the remainder. This highlights the potential to attract more companies from underrepresented sectors, further enhancing the depth and diversity of DFM's market offerings. Hamed Ali, CEO of DFM and Nasdaq Dubai, said, “DFM’s steady growth in the first half of 2024 is a testament to our strategic initiatives and the confidence of our investors. Our commitment to innovation is driving new opportunities for both companies and investors, as exemplified by the announcement of ARENA and the enhanced iVestor App. The success of public listings from both government and private entities highlights the depth and resilience of our markets. Additionally, the increase in our foreign investor base can be attributed to the success of our international roadshows, showcasing global appeal and robust investment opportunities within Dubai's financial markets. We look forward to continuing this momentum and unlocking new opportunities for our stakeholders.’’ 

WealthBlock, the platform that streamlines capital raising, investment marketing and investor management for global asset managers, today announced upgrades to its flagship offering. The all-in-one platform modernises the investor onboarding, marketing and reporting functions into a user-friendly and efficient process that empowers asset managers to enhance capital raising, meet evolving compliance requirements and focus on generating returns for their clients.   Since its founding in 2018, WealthBlock has served more than 150 asset managers, helping them onboard more than 15,000 investors and raise more than $4 billion in capital. The platform delivers the most superior user experience, interface and functional design to support any workflow, investor journey or reporting that asset managers require to support investors.  WealthBlock’s white labelled platform is designed for growth-oriented global asset managers, as well as Venture Capital, Private Equity, and Real Estate firms. It automates, tracks, and simplifies subscription documents and eliminates error- prone practices that require a firm’s investors to manually fill in data – a constant source of consternation in the investment business. WealthBlock can set up a firm’s investor workflows in under 30 minutes and collaborates with fund administrators and compliance teams to ensure consistency across records and filings.   “We founded WealthBlock after hearing for years about the frustrations asset management firms faced in onboarding customers and maintaining their confidence and favour,” said Trilliam Jeong, CEO of WealthBlock. “As we continue to invest in our platform, we are giving our clients an all-in-one solution that provides the data analytics, attention to detail and ease of engagement they need to automate and error-proof the entire onboarding, marketing, and reporting processes. By helping these firms digitise and customise these operations in mere minutes, we are empowering them to simplify activities so they can focus on their core mission of raising capital and generating returns for their customers.”  WealthBlock has collaborated closely with clients to understand how they engage with the platform and used that feedback to drive innovation, provide an enhanced user experience and meet evolving user and regulatory requirements. As a result, WealthBlock offers the most robust solution for asset managers, including:   Onboarding and e-sign functionality that helps firms avoid investor drop-outs caused by onboarding friction. WealthBlock creates custom onboarding flow(s) to accommodate any type of investor, including advisors with sub-investor accounts; high net worth investors with multiple entities and family members; institutions with users of various roles. Among many functions, WealthBlock converts any legal document into an e-sign ready format in minutes; runs compliance checks within the flow (Know Your Customer, Anti Money Laundering, Accreditation, Suitability, Non-Disclosure Agreements); and tracks investor engagement activities (e.g., clicks, page views, time, download).  Investment Marketing function that allows firms to avoid wasting time chasing the wrong prospects. Among the many functions, WealthBlock creates custom investment presentations; presents documents in custom data rooms with access control (e.g. KYC/AML/E-sign NDA); aggregates data into single source of truth by combining all relevant tools (i.e. CRM, data room, Engagement Analytics, Email Automation, Sales Reporting); and tracks all engagement activities (e.g. open, click, doc view, download, e-sign).   Investor Reporting capabilities that aim to avoid capital loss caused by investor frustration with an inefficient asset manager. Among its many functions, it creates an interactive dashboard with custom calculations, datasets, and visualisations; distributes documents seamlessly with auto notifications and engagement tracking; and aggregates all sources of data into one place for reporting. 

ING today announced the appointment of Daniele Tonella as chief technology officer (CTO) and member of the Management Board Banking, effective 5 August 2024. He will succeed Marnix van Stiphout who has held the role ad interim since 1 November 2023, in addition to his roles as chief operations officer and chief transformation officer.Daniele Tonella (Swiss) has over 20 years of experience in technology leadership roles in the financial industry and is currently active in advisory and board roles for several companies. From 2017-2021 he worked at UniCredit, including as group chief information officer and CEO of UniCredit Services. Before that he held various roles at AXA Group, Evalueserve and Swiss Life.He started his career as a consultant at Mercer and later at McKinsey & Company in Switzerland. Daniele holds a master’s degree in industrial engineering from the Eidgenössische Technische Hochschule Zürich in Switzerland and completed various executive education programmes at Harvard, IMD, INSEAD and MIT Sloan.Steven van Rijswijk, CEO of ING, commented: “Daniele’s experience and track record in digital leadership will greatly benefit ING in executing our strategy to be the best European bank, by accelerating growth, increasing impact, and delivering value. I would like to thank Marnix for leading the team ad interim and the CTO management team for supporting the organisation and delivering on our Tech priorities.’’Daniele Tonella added: “ING is a bank with a purpose that pushes the boundaries of what engineering in banking can be and of what technology in banking can do. I am proud to become part of this team that looks beyond the horizon and gets there."The appointment of Daniele Tonella as chief technology officer and member of the Management Board Banking has been approved by the European Central Bank.

Assalamualaikum and good morning,  Prof Emeritus Dato’ Dr Mohamad Azmi Omar – Chaiman of ISRA Consulting Wan Rizaidy W. Mamat Saufi – Acting CEO, ISRA Consulting Members of the SC Shariah Advisory Council (SAC)   It is my pleasure to welcome you all to the SC to celebrate a key milestone for the Shariah Mentoring Programme or SMP. This graduation is special to the SC, as it is the first for the Shariah Mentorship programme. This initiative was born out of a critical need to cultivate young Shariah background talents for ICM and create a continuous talent pipeline of Shariah advisers equipped with technical competencies and knowledge of ICM products and offerings. The success of this programme has exceeded our expectations in its inaugural year. The first cohort received overwhelmingly positive feedback from the industry, with many highlighting the graduates' high level of professionalism, in-depth knowledge, and technical competenci Consequently, over 50% of graduates have secured permanent employment offers from the SMP participating organisations, highlighting the programmes's success in preparing skilled professionals for ICM. (Note: As of 18 July 2024, 8 out of 15 graduates have secured employment.preparing skilled professionals for ICM. (Note: As of 18 July 2024, 8 out of 15 graduates have secured employment.) We look forward to all the graduates securing employment in the Islamic finance/Shariah sector through SMP participating organisations, paving the way for them all to become registered and capable Shariah advisers in line with the objective of the programme. Objective of SMP is to ensure continuous pipeline of skilled and competent Shariah talents Ladies and gentlemen, Our Islamic Capital Market in Malaysia is evolving and always improving, and with the rapid expansion, there is a pressing need for more professionals who are well versed in both Shariah principles and market practices, ensuring continued growth.  To put this into context, almost 50% of current Malaysian Shariah advisers are 50 years of age or older, and only 12% of the total current Shariah advisers are women.  So, this programme was born out of the need to build a continuous talent pipeline of skilled and competent Shariah talents. Since 2020, we have received an average of 15 new applications for ICM Shariah advisers annually, with 19% rejected due to lack of experience. The SC Shariah Adviser Guideline was revised in 2021 and incorporated under the Guidelines on the Registration and Conduct of Capital Market Services Providers (Section 76A (2) of the CMSA).  This move is intended to house all registered persons under a single operating guideline and is part of SC’s efforts to establish entry standards and enhance requirements for registered Shariah advisers. Some of the changes include increasing the required years of experience from 1 to 3 years, mandating specific academic qualifications, especially in Fiqh and Usul Fiqh studies, insisting on continuing professional development, and having fit and proper criteria for registered Shariah advisers. SMP graduates and Shariah Fraternity as advocates of Maqasid al-Shariah in ICM Ladies and gentlemen, So, what does the SMP entail? Over the past months, these graduates have undergone rigorous training, combining two months of intensive classroom learning with six months of invaluable hands-on experience at prominent organisations within our Islamic capital market. The SMP’s structured curriculum, from Beginner to Intermediate levels, is designed to empower participants to grasp the complex relationship between the capital market and Shariah principles. Modules cover topics, among others, Capital Market & Shariah, Islamic Equity Markets, Sukuk, Sustainable and Responsible Investment (SRI), and Maqasid Shariah guidance for the ICM. The SMP aims to equip individuals with the knowledge, insights, and skills needed to become proficient Shariah Advisers within the ICM. One matter I wish to highlight is that Shariah professionals such as yourselves, have a crucial role, in explaining the aspirations and principles of the Maqasid alShariah in ICM transactions and products. This involves embedding and enhancing the moral imperatives in finance, ensuring that financial practices not only comply with Islamic law but also promote social justice, economic welfare, ethical behaviour and integrity. Maqasid also requires us to consider our impact on the environment. The other matter I wish to highlight is that you should all continue understanding how the market works. Scholars can’t apply Maqasid or Shariah rules unless they understand the motivations of market players and their clients. If you do not understand who gets what in a transaction, you are unlikely to be able to follow Shariah rules properly. So, do become investors yourselves to see how the market works and always continue to learn new things.  Welcoming the Second Cohort As we celebrate the achievements of the first cohort, I am also delighted to welcome the 15 participants of the second cohort – selected out of 273 applicants. I am delighted to announce that the second cohort's classroom sessions have already commenced, with internship placements scheduled to begin later this year. Based on our observations and feedback from the first cohort, we will continue to enhance the programme. For instance in the 2nd cohort, we incorporated a hybrid learning format and extended the classroom module from two months to three months, for a more comprehensive and enriched learning experience.  Closing In closing, I wish to express my thanks and appreciation to ISRA as our strategic partner for SMP. By 2025, we anticipate that more than 40 participants will have completed the SMP and hopefully be registered as Shariah advisers, contributing significantly to the growth and resilience of ICM in Malaysia. Congratulations and best wishes to all. Thank you.

The Securities Commission Malaysia (SC) today announced the start of the second cohort of the Shariah Mentorship Programme, stepping up its efforts to build an innovative and competitive Islamic capital market (ICM). More than 250 applications were received when applications for the second cohort was opened in March this year, with 15 participants selected. This brings the cumulative number of participants in the program to 30 since inception. Launched in October last year, the programme is a unique mentorship initiative to develop skilled Shariah professionals for the ICM. It is piloted through a strategic partnership with ISRA Consulting, a subsidiary of INCEIF University.   The programme's first cohort of 15 participants graduated today, having completed two months of intensive classroom learning, followed by six months of internship at selected participating organisations. Over 50% of these graduates have secured permanent employment with the participating organisations. The programme is one of the SC's initiatives under the Capital Market Masterplan 3 (CMP3). It is aimed at broadening the ICM’s breadth and depth through talent development and capacity building.   The SC Chairman Dato’ Mohammad Faiz Azmi said there is a pressing need for more professionals proficient in both Shariah principles and ICM knowledge in order to meet the growing market demands.   “With the ICM’s rapid expansion, there is an urgent need for more professionals wellversed in both Shariah principles and market dynamics to ensure its continued growth,” he said at the graduation ceremony held at INCEIF University. The second cohort will also now benefit from a refreshed curriculum based on feedback from the first cohort. Key improvements include a hybrid format to accommodate the needs of working participants, and an extended classroom module from two to three months for a more meaningful learning experience.   These moves aim to provide an impactful learning environment that integrates real-world application and technical aspects of ICM. For more information on the Shariah Mentorship Programme and details on when to apply for the third cohort, please visit www.inceif.edu.my/shariah-mentorship-programme/.  

Solactive welcomed the launch of Betashares’ latest ETF – the Betashares Australian Momentum ETF – which trades on the Australian Securities Exchange (ASX). This new ETF tracks the Solactive Australia Momentum Select Index, offering investors exposure to a select range of securities focused on above average momentum scores, as measured by risk-adjusted returns. Australia’s equity market continues to evolve, and investor interest in momentum-based strategies is increasing. Momentum investing, which focuses on stocks that exhibit strong above-market price trends, has established itself as a proven approach based on the theory that such trends are likely to persist. The Solactive Australia Momentum Select Index uses the Solactive Australia 200 Index as a starting universe. These 200 ASX-listed stocks are then ranked by their 6- and 12-month risk-adjusted returns, and the top 50 stocks based on those rankings enter the index at each selection day. This selection process is repeated every two months and typically results in a portfolio of around 90 stocks with a mix of partial and full weighting allocations depending on how consistently each stock has ranked in the top 50 over the four selection days. Any stock that is ranked in the lowest 10% based on its 6-month total return at the latest selection day is removed from the index. The ETF started trading on 24 July on the Australian Stock Exchange (ASX) with ticker MTUM. Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “We are delighted to extend our collaboration with Betashares by providing this tailor-made index solution to ensure optimal coverage of the desired exposure. The Solactive Australia Momentum Select Index provides a statistical data-driven approach to capturing strong and consistent momentum stocks in the Australian market while systematically cutting worst performers in a timely manner.” Betashares CEO, Mr Alex Vynokur said: “The Betashares Australian Momentum ETF combines the performance potential of momentum investing with the convenience of an ETF. To that end, MTUM is a complementary addition to our growing range of innovative investment solutions that assist investors and their financial advisers to implement institutional grade strategies within their portfolios.”

ASX today listed three Environmental Futures contracts, marking the next maturity phase for carbon and renewable energy markets in Australia and New Zealand. These new contracts allow participants to price and hedge emissions reduction risk amid the transition to a lower carbon economy.  The contracts represent the first carbon futures contracts to launch in Australia and New Zealand. To support growth in these new markets, ASX has introduced a temporary fee waiver on all Environmental Futures transactions. The fee waiver is intended to help build liquidity by encouraging early engagement from a diverse range of market participants.  The three futures contracts are available for trading today on the ASX 24 Market and include physically delivered Large Generation Certificate (LGC) Futures, Australian Carbon Credit Unit (ACCU) Futures and New Zealand Unit (NZU) Futures. All contracts intend to provide a liquid, transparent, forward pricing curve on an annual basis out to five years.  ASX’s Environmental Futures will allow registered participants to make or take delivery of underlying Certificates or Units at settlement which can then be surrendered to the government to offset emissions or meet compliance obligations. Contracts are standardised, with each equalling 1,000 underlying LGCs, ACCUs or NZUs.  ASX designed its suite of Environmental Futures to meet growing demand from customers for access to liquid and transparent carbon and renewables trading markets. There has been substantial interest in the products from a broad and diverse customer base extending from the energy sector through to carbon project developers, compliance entities, financial institutions, trade houses and corporates.  Daniel Sinclair, ASX Head of Commodities, said: “As Australia moves from a voluntary to compliance-led carbon market in step with other global jurisdictions, derivatives markets can play an essential role. The transition to clean energy, by definition, is uncertain, and ASX-hosted Environmental Futures will be a key instrument in managing risk and supporting the net zero targets of organisations and policymakers.” Australia’s carbon market is poised for its next stage of development and is set to be one of the world’s largest producers of carbon credits over coming years. Recent data from the Clean Energy Regulator shows that around half of all ACCUs now sit in the registry accounts of safeguard or safeguard related entities alone. This is volume that could benefit from moving onto the exchange.  ASX’s Environmental Futures are part of a broader ecosystem of current and planned futures and options contracts across electricity, gas and environmental markets.  “Building from our core electricity products and driven by strong market demand, ASX intends to develop a diversified and integrated transitional product ecosystem that helps our customers to price and manage the risk and uncertainty of the energy transition.” Mr Sinclair said.  Environmental Futures can open up access to new market participants, attracted by liquidity, enhanced price discovery and reduced credit risk through central clearing. The futures will provide a standardised price around which liquidity can concentrate. This is particularly important in supporting the OTC ACCU market where certain methods and co benefits are valued differently. “A liquid and transparent Environmental Futures market will give organisations greater visibility and confidence to support ongoing investment in renewable energy and carbon abatement projects. This will ultimately help mobilise capital towards meeting longer-term emissions targets.” Mr Sinclair added. 

ASX Limited (ASX) is scheduled to announce its financial results for the full year ended 30 June 2024 on Friday, 16 August 2024, prior to market open. After the results have been announced, ASX will hold a briefing: Date: Friday, 16 August 2024  Time: 10:00am (Sydney time)  Webcast: Register to view the briefing here.    The webcast will be archived on ASX’s website. Click here for full details.