Managing Editor’s Introduction Managing Director’s Introduction

New and improved Markets resurgence 2023

While 2021 was the year the world struggled with the ongoing Covid pandemic, 2022 will be remembered as the year we started dealing with the aftermath of the crisis.

Supply chains problems linked to the pandemic were exacerbated by Russia’s invasion of Ukraine in the early part of the year, leading to supply side pressures and, ultimately, inflation.

As 2022 comes to an end, I look back at what the team has achieved in the past few months with a sense of pride.

Luke Jeffs Managing Editor

Central banks around the world were forced into action and they spent most of last year trying to tackle rampant inflation.

As we enter a new year, this pressure is easing slightly but further interest rate hikes in the early part of the year are a given.

The effect on the markets covered by Global Investor has been stark. Derivatives markets saw another record year in 2022 for volumes while futures commission merchants will be looking forward to the higher margins they can earn from lending.

The repo markets look set for a resurgence in 2023 while the clearing of repo could come back on to the agenda amid concerns about counterparty default. The likelihood of a global recession will attract short-sellers. The FTX collapse in November 2022 will dampen the demand for digital assets and slowdown the innovation around this market.

Amélie Labbé Managing Director

We have managed to dramatically the print circulation of our portfolio of reports and guides, focusing on building the online presence and reach of Global Investor / ISF. Improved marketing, new formats such as video interviews and roundtables, and more interactive magazine software have supported our effort to boost our digital engagement.

The decision made 18 months ago to shift to digital has been vindicated: not only did it makes sense from an environmental perspective, it also reflects the way people now consume content.

We fully intend to continue on this path in 2023, bringing you more interactive content and engagement.

I am proud of what the team has built. We have a brilliant team of journalists, content managers, salespeople and marketing experts who come up with new ideas every day and keep their finger on the industry’s pulse.

Here’s to 2023 and what we can achieve together.

What we cover

Global Investor Group offers a wealth and depth of news, analysis and data across the derivatives, asset management, securities finance, custody and fund services markets.

The Global Investor Group was created in 2017 and brings together three leading brands – FOW, ISF and Global Investor - to provide unparalleled reach across the buy-and sell-sides. As of October 2021, our market-leading content is available exclusively online.

Our mantra is to be the closest to each market we cover, through everything from exclusive news stories to thought leadership articles, reports and market-leading events.

ARRACO ceases trading amid commodity market turmoil

ARRACO Global Markets, the commodity trading firm started by a former TP ICAP energy broker, has ceased trading due to regulatory burdens and declining volumes in the wider market.

ARRACO, founded in 2015 with £100,000 before growing to 150 staff across seven offices, has stopped trading due to a combination of factors, according to chief executive Tom Roberts.

CME plans to add Micro E-Mini expiries in

February

CME Group plans to boost its equity options product suite by launching four new weekly options expiry dates based on the exchange group’s popular Micro E-mini equity futures contracts.

The Chicago-based exchange said on Tuesday it will launch on February 13 Monday, Tuesday, Wednesday and Thursday weekly E-mini Nasdaq 100 and S&P 500 options, subject to regulatory approval.

ICE estimates $47bn of extra margin from European gas price cap

Intercontinental Exchange (ICE) has estimated the proposed European gas price cap would increase margin requirements on energy firms by $47bn (£38bn).

The report on the European gas market reforms, written by consultancy Oxera and commissioned by ICE, warned of the possible effects of the European gas price cap as currently drafted.

Chinese stock exchange drafts securities lending rules

A new Chinese stock exchange has proposed rules to allow margin trading and securities lending for the first time, in what could be an early sign of changing attitudes to securities finance in the world’s second largest economy.

The Beijing Stock Exchange, which launched in November to support fast-growing companies including tech firms, published on Friday draft rules for margin trading and securities lending.

Europe cancels UnaVista’s securities finance reporting license

The European securities regulator has cancelled UnaVista’s securities finance reporting approval a year after the trade repository arm of the London Stock Exchange Group said it was closing the business.

ESMA said in a statement: “SFTR provides that ESMA shall withdraw the registration of a TR where the TR expressly renounces its registration.”

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ED&F Man Capital Markets chief Pettit thanks ‘team of warriors’

Gary Pettit, the chief executive at ED&F Man Capital Markets appointed to guide the firm through its acquisition by Marex, has signed off as he departs the firm on Thursday.

Pettit is a former global head of financial futures and options at MF Global, a firm he was with for 12 years from 1999. He later held the same role at ICAP before joining ED&F Man in 2015. Most recently, his role as UK chief executive was expanded in August to include EMEA and Asia Pacific responsibilities after then chief executive Chris Smith left the firm when it agreed to sell itself to London-based Marex.

OSTC eyes future beyond prop trading

Building a financial career as a proprietary trader is no longer restricted the world’s major financial centres, or to people from narrow socio-economic and educational backgrounds who live within commuting distance of a physical exchange. This is the vision of OSTC, a derivatives trading and education firm based in Greater London, which is on a mission to identify traders who have strong potential but little or no experience, and transform them into profitable, high-volume market participants.

ARRACO ceases trading amid commodity market turmoil

ARRACO Global Markets, the commodity trading firm started by a former TP ICAP energy broker, has ceased trading due to regulatory burdens and declining volumes in the wider market.

ARRACO, founded in 2015 with £100,000 before growing to 150 staff across seven offices, has stopped trading due to a combination of factors, according to chief executive Tom Roberts.

Part Two: Cboe president Howson outlines European, Asian plan

A project close to Howson’s heart is Cboe Europe Derivatives (CEDX) which launched in September last year when he was still head of Cboe Europe, the position he held before being bumped up to group president.

CEDX, Cboe’s first European derivatives venture, is an ambitious bid to break into the ultracompetitive European equity futures and options sector by replicating the US options market structure, a template Cboe thinks should resonate with quant-based hedge funds.

Citi hires former Goldman MD as global head of prime sales

Citigroup has appointed Tom Lynch, formerly of Goldman Sachs, as global head of prime sales, as the bank continues to grow its prime services offering.

Based in New York, Lynch is responsible for expanding Citigroup’s prime services offering across prime finance, futures, foreign exchange and fixed income, the bank said.

Prior to joining Citi, Lynch was chief operating officer at private investment firm Hound Partners for two years.