News Nuggets | 29 June: AvaTrade's Veteran Joins GKFX; Nasdaq Welcomes 60 IPOs

FCA Highlights Transparency Concerns Hindering Sustainability-Linked Loans

The Financial Conduct Authority (FCA) has outlined some challenges holding back sustainability–linked loans (SLLs). According to the regulator, a major concern affecting the market is the lack of trust and transparency.

Additionally, the FCA has pointed out concerns among borrowers regarding excessive scrutiny if they miss the performance targets. Moreover, according to the regulator's findings, greenwashing (misleading environmental information that is impacted by firms' operations) holds back SLLs.

SLLs aim to promote sustainable economic activity and growth by linking their interest rates to meeting certain agreed sustainability goals.

From GKFX to AvaTrade

Pedro Sánchez Bennai, after ten years of working for the broker GKFX, has confirmed that he joined AvaTrade in June. Bennai has been appointed as the Chief Country Manager for Spain and is working from the broker's office in Madrid.

Before joining AvaTrade, he held the position of Deputy Regional Director for three years at GKFX. Earlier, he was a Country Manager for a year and started his journey with the company in 2013 as a Sales Manager & Analyst.

"I have started a new position as Chief Country Manager Spain at AvaTrade," Bennai wrote on his LinkedIn profile.

NASDAQ Welcomes 60 IPOs in H1 2023

In the first half of 2023, NASDAQ saw 60 initial public offerings (IPOs), which raised a total of $3.71 billion. Comprising 46 operating companies and 14 SPACs, these listings represent an 88% win rate in the US market, securing NASDAQ's leading position for 38 consecutive quarters.

Karen Snow, Global Head of Listings at NASDAQ, shared the company's commitment to supporting businesses considering various pathways to public markets, including traditional IPOs, direct listings, spins, and dual listings.

“I look forward to building upon Nasdaq’s position as the world’s premier listing exchange,” Snow added.

$50M+ Fine for Fraudulent Digital Asset Scheme

Michael Ackerman has been issued a permanent injunction and ordered to pay over $50 million by the US District Court for his involvement in a fraudulent digital asset trading scheme.

The Commodity Futures Trading Commission (CFTC) has announced that the court's order includes a trading ban in all CFTC-regulated markets, a civil monetary penalty of $27 million, and $27 million in restitution to defrauded victims.

The complaint alleged that Ackerman solicited and misappropriated funds under the guise of profitable digital asset trading, causing significant financial losses for over 150 investors.

Ledger Unveils Institutional Trading Tech

Ledger, a provider of hardware crypto wallets, is venturing into the institutional trading technology sector with Ledger Enterprise TradeLink, an open network aimed at facilitating custodial trading through exchange and custodial partners.

The solution, built upon Ledger's technological and security infrastructure, offers enhanced control, security, and flexibility, while ensuring transparent governance of an enterprise’s digital asset trading.

This development aims to address the rising demand for risk mitigation in a rapidly evolving crypto landscape filled with security and regulatory challenges. By eliminating network lock-in risks and providing easy access to a wide network of custodians and exchanges, Ledger's new solution positions enterprises to handle changing market and regulatory landscapes with more confidence.

Visa Acquires Brazilian Fintech Pismo

The global payments leader, Visa Inc. is acquiring a Brazilian fintech platform, Pismo for $1 billion in cash, marking a major expansion in Latin America.

This acquisition, which comes amidst a slowing pace of funding in the region, represents the biggest fintech exit since Nubank's 2021 public offering and the largest disclosed startup exit for the current year.

For Visa, this takeover is a significant move following its 2021 acquisitions of the European open banking platform, Tink and the British cross-border payments provider, Currencycloud.

ASIC's Travel Restraint against Ex-Magnolia Director

Following ASIC's request, the Australian Federal Court has extended interim travel restraint orders against Mitchell Atkins, the former director of Magnolia Capital. Initially put in place on 19 June, the orders prohibit Atkins from leaving Australia without the court's consent and demand that he surrenders all his passports and airline tickets to the Sydney Registry of the Court.

As ASIC continues its investigation into Atkins and Magnolia Group, approximately $40 million in investor losses remain unaccounted for, indicating significant issues in the company's private lending business.

Mizuho EMEA Joins Neptune Network

Mizuho EMEA has joined Neptune Networks Ltd., a fixed-income network for real-time axe data, expanding the bond dealer community. Mizuho will concentrate on distributing Investment Grade and High Yield corporate credit data via Neptune.

Byron Cooper-Fogarty, the COO of Neptune, has welcomed Mizuho and underscored the importance of high-quality data from liquidity providers in driving market efficiency. The inclusion of Mizuho EMEA in Neptune's network underscores the latter's commitment to delivering high-quality data to buy-side clients.

“We are proud to play our role in making the market more efficient for all participants by sharing data and enhancing liquidity in global markets,” Guy Cornelius, the Head of Institutional Sales at Mizuho EMEA, added.

TradingView Adds Pakistan Stock Exchange

TradingView, an online charting platform, has extended its global coverage by integrating data from the Pakistan Stock Exchange (PSX). The addition of PSX marks a new chapter in TradingView's efforts to broaden its market analysis capacity. Founded in 1949 as the Karachi stock exchange, PSX later consolidated with Lahore and Islamabad exchanges in 2016 to become a leading financial institution, providing fair, efficient, and transparent trading experiences.

Headquartered in Karachi and having branches in Pakistan's major cities, PSX stands for integrity, innovation, and collaboration. It has seen significant growth in over 500 companies listed across various sectors, including banking and telecommunications. PSX serves as a key facilitator of both local and foreign investments, playing a critical role in the development of Pakistan's economy and capital markets.

FCA Expands Access to LTAF

The UK's Financial Conduct Authority (FCA) has expanded access to Long Term Asset Funds (LTAF), a new type of open-ended authorized fund, for retail investors and defined contribution pension schemes.

Launched in 2021, LTAFs are designed to facilitate investments for the long-term, illiquid assets like venture capital, private equity, private debt, real estate, and infrastructure. Given their higher-risk nature, LTAFs will be subjected to additional protection under the FCA's high-risk investment framework.

“ Longer-term less liquid real assets can generate good alternative returns for investors and, crucially, help to grow the UK economy through investments, such as new infrastructure,” Sarah Pritchard, the Executive Director of Markets at the FCA, commented.

The FCA is also considering the applicability of the Financial Services Compensation Scheme (FSCS) to LTAFs before they reach the retail market.