Better Markets

Important story from Paul La Monica of Barron's on the debate around after hours trading and possible pitfalls for retail traders. https://lnkd.in/d8nFA4sQ In the story our Benjamin Schiffrin warns that “Retail investors taking part in extended sessions would be trading in a market where prices are bound to be more volatile and less favorable than during normal trading hours." Dan Egan, Vice President of behavioral finance and investing for Betterment also notes “We see more people make impulsive decisions after hours, especially if it’s on your phone.” That's why the company is refusing to allow 24/7 trading in its client portfolios

Our Benjamin Schiffrin explains that supporters of Private Credit ETFs claim they will “democratize” access to private markets, but the reality is much more complicated and potentially much more dangerous for everyday investors. Learn why in our latest #substack: https://bit.ly/3V2cU2M

On November 19, Better Markets released a report highlighting the financial crisis threatening the hugely successful CFTC Whistleblower Program and the need for immediate reforms. “It’s essential that all stakeholders recognize the importance of securing sustainable funding for the Whistleblower Office,” said Cantrell Dumas, Better Markets’ Director of Derivatives Policy. "Ensuring the continued operation of this office isn’t just about funding a program. It’s about upholding the principles of accountability and transparency that are the foundation of our financial system. It’s in the best interest of everyone that this office remains robust and effective.”

The American people deserve—and the financial system requires—regulators who hold banks accountable for all risks, regardless of the source. Our latest Fact Sheet details five things that must change related to managing #climate-related financial risk. https://lnkd.in/ereJp4_a

This morning there will be two sentencings for historic financial crimes. The amount of jail time given will say a great deal about the state of our justice system. As we have consistently argued, a strong sentence is a matter of basic fairness. Equal justice under law means that rich, white-collar criminals should be properly punished for their crimes, too. ???? -Bill Hwang, Archegos Sung Kook “Bill” Hwang (“Hwang”) was the founder, owner, and head of Archegos Capital Management (“Archegos”), a “family office” hedge fund that managed the wealth of Hwang, his family, and employees. After a two-month jury trial this summer that featured over twenty witnesses for the government, including two former Archegos employees who pled guilty to their own crimes and testified against Hwang, he was convicted of ten counts of securities fraud, wire fraud, racketeering conspiracy, and market manipulation. As the government wrote in its sentencing memorandum, Hwang is as “an?unrepentant recidivist, [who] led one of the largest securities fraud schemes in history and caused billions in losses.” As the government explains in its sentencing memorandum (“GSM”), a prison term of 21 years is appropriate, given the gravity of Hwang’s wrongdoing, his recidivism, and his refusal to accept responsibility for his actions. Learn more in our memo on the sentencing: https://lnkd.in/eexuH6gn ???? -Gary Wang, FTX Wang was an indispensable collaborator in FTX’s historic crime spree as FTX’s chief technical officer (and 17% equity owner), Alameda’s co-founder (who owned 10% of the company), and author of the code that allowed FTX to steal billions from its customers.?While Wang eventually cooperated with the prosecution he could have – and should have – come forward a year or 90, 60, or more days before FTX’s collapse. He could have been a whistleblower. He could have acted in a way that provided him with a strong basis for arguing no jail time, but he chose not to do that. This sentence is even more fundamentally problematic, since all of the principals in the FTX debacle deserve significant sentences, notwithstanding their contrition and cooperation.???As we have argued consistently, those who lead, direct, participate in, and help carry out serious, intentional, and damaging financial crimes must be held accountable and properly punished to deter others from violating the law. Read more in our memo: https://lnkd.in/epn7u5AX

Today #GaryWang will be sentenced for his role in the historic #FTX collapse. While Wang eventually cooperated with the prosecution he could have – and should have – come forward a year or 90, 60, or more days before FTX’s collapse. He could have been a whistleblower. He could have acted in a way that provided him with a strong basis for arguing no jail time, but he chose not to do that. That’s why Wang must do jail time for his crimes. Read more in our memo: https://lnkd.in/epn7u5AX

Bitcoin rises to new record above $94,000: CNBC #CryptoWorld On today’s show, Dennis Kelleher, co-founder and CEO of Better Markets, shares his criticism for the crypto industry’s influence on the 2024 election. Watch here: https://lnkd.in/eRcETyYq

The U.S. Commodity Futures Trading Commission's #Whistleblower Office has played a pivotal role in exposing wrongdoing that undermines the fairness and integrity of the commodities and derivatives markets. This vital tool has helped bring to light misconduct that might otherwise have remained hidden. Since its inception after the 2008 financial crisis, the office has led to over $3.2 billion in collected penalties and a significant increase in enforcement actions. But the program now faces serious funding challenges. In our new fact sheet our team argues that the program must be better funded to keep markets transparent, accountable, and resilient against emerging threats. https://bit.ly/4eyBEXz

Important column by Rana Foroohar of the Financial Times on what's coming for our economy in a second #Trump administration. Dennis Kelleher explains in the piece "I think we’ll get a two-year sugar high under Trump but down the road, we’re looking at a potentially catastrophic correction — something much worse than [the financial crisis of] 2008. That’s because we have a financial system that is essentially extractive.” https://lnkd.in/egJpRvra

Our new report explains that the #PrivateMarkets have seen explosive growth over the last two decades. This growth comes at the expense of our public markets, which are deep, liquid and the envy of the world. The growth of the private markets has significant ramifications for institutional and retail investors, capital formation, and the entire economy and all Americans. Read more in our new report by Benjamin Schiffrin: https://bit.ly/4fUjYqc