In other news, China Renaissance embraces Broadridge, Chi-X Asia Pacific is part of Cboe, and FinCEN adds key posts.
Sen. Warren Urges SEC to Consider Crypto Regs
Wall Street critic U.S. Senator Elizabeth Warren (D-Mass.) is asking Gary Gensler, the chair of the SEC, via a recent letter, to investigate the ways that cryptocurrency exchanges “may be undermining the SEC’s mission” as a regulator of securities trading markets.
The letter from Warren, who is chair of the Senate Banking, Housing, and Urban Affairs Committee’s subcommittee on economic policy, has an extensive list of concerns.
Warren asks Gensler “to outline the ways in which cryptocurrency exchanges may be undermining the SEC’s mission to ensure that markets are operating in a ‘fair, orderly, and efficient manner,’ whether the characteristics of assets traded on cryptocurrency exchanges may warrant additional protections for investors … the extent to which the SEC’s authority to regulate crypto exchanges may differ from the SEC’s authority to regulate traditional exchanges, the extent to which international regulatory coordination may be needed, and the concerns decentralized finance (DeFi) may raise for the SEC’s jurisdiction,” according to the letter.
“While trading on cryptocurrency exchanges has gained popularity, these platforms lack the same types of basic regulatory protections — such as against fraud and manipulation — as traditional securities exchanges like the New York Stock Exchange or Nasdaq. During the six-month period from October 2020 to March 2021, nearly 7,000 people reported losses from cryptocurrency scams, resulting in a cumulative $80 million in losses,” Warren says.
FTF News reached out to the SEC for comment, but there was response by deadline. The full text of Warren’s letter can be found here: https://bit.ly/36vAGuv
China Renaissance Picks Broadridge for Links to Exchanges
China Renaissance has expanded its post-trade processing relationship with Broadridge Financial Solutions, officials say. The purpose, according to a statement is to “facilitate the clearing and settlement of both Shenzhen- and Shanghai-listed equities.”
China Renaissance provides financial services across mainland China, Hong Kong and the United States, according to Broadridge officials. This expansion is in addition to the Hong Kong-listed equities processing Broadridge has provided to China Renaissance since 2016.
Both China Renaissance and Broadridge point out that they are “jointly planning for upcoming market and regulatory changes, such as Hong Kong Exchange’s (HKEX) Synapse program and FINI (Fast Interface for New Issuance) proposal, which aims to replace the existing ‘T+5’ process with ‘T+1’ for newly listed shares on HKEX.”
Cboe Completes Acquisition of Chi-X Asia Pacific
Cboe Global Markets, Inc., a provider of market infrastructure and tradable products, reports that it has completed its acquisition of Chi-X Asia Pacific Holdings, Ltd., an alternative market operator and provider of market processes and procedures.
Cboe notes that, through ownership of Chi-X Asia Pacific, it “gains entrance into two of the world’s largest securities markets – Japan and Australia – to establish a significant presence in the Asia Pacific region for the first time.”
“Welcoming Chi-X Asia Pacific to the Cboe network represents … another important step in our vision to become a truly global marketplace for our customers,” Ed Tilly, chairman, president and CEO at Cboe Global Markets, says in the statement.
In addition, per the statement, BIDS Trading, which Cboe bought in January 2021, operates the largest block trading ATS [i.e., an alternative trading platform] by volume in the U.S., and one of the largest block trading platforms in Europe. “With BIDS’s current network covering U.S., Europe and expanding into Canada, the addition of Asia Pacific is expected to create a global block trading platform to serve an even broader base of customers.”
Chi-X Asia Pacific Holdings, Ltd. also notes that it maintains offices in Sydney, Tokyo, Hong Kong and Manila.
FinCEN Adds to Its Executive Roster
Michael Mosier, the acting director of the Financial Crimes Enforcement Network (FinCEN), reports several staff additions, most prominently the appointment of Michele Korver, FinCEN’s first chief digital currency advisor, and Jayna Desai, FinCEN’s first director of strategic communications.
Korver was formerly at the United States Department of Justice’s criminal division, “where she advised government attorneys and federal agents nationwide on digital currency matters to assist charging decisions and other prosecutorial strategies,” also advising the U.S. Department of the Treasury’s Financial Stability Oversight Council and the U.S. delegation to the Financial Action Task Force.” She also “developed cryptocurrency seizure and forfeiture policy and legislation.”
Korver’s mandate includes advancing FinCEN “in the digital currency space by working across internal and external partners toward strategic and innovative solutions to prevent and mitigate illicit financial practices and exploitation.”
Desai was formerly at the U.S. Customs and Border Protection (CBP). Desai’s mandate includes FinCEN’s internal and external communications,” as well as “media engagement on behalf of the bureau.” She most recently served as senior policy advisor at the U.S. Customs and Border Protection’s office of operations support, where she “oversaw all communications, including social and digital media, and developed and delivered legislative engagement.”
Prior to CBP, she “worked as an analytical consultant for the World Bank after starting at the Associated Press,” per the statement.