Weekly Roundup

New Volatility Index: S&P Dow Jones Indices and Cboe Labs have designed a new volatility-related index to provide representation of implied dispersion for the S&P 500 Index. The index aims to help market participants better understand portfolio diversification benefits and implement dispersion trading strategies.

24/7 Stock Trading: A group of retail brokerages and exchange operators, including Robinhood Markets and Cboe, announced that around-the-clock trading, a feature of cryptocurrency markets, is likely coming to U.S. equities within five years.

Tight Deadlines: SEC staff have expressed concerns that the commission’s fast-paced rule-making agenda has stretched staff resources too far, citing concerns about short deadlines to draft proposed rules and for public stakeholders to submit comments on them. Some officials also worry these tight deadlines may increase risk for lawsuits.

Comment Glitch: Following the glitch on the SEC’s website for comment, members of the House Republicans have demand additional details. Members expressed concern that comments for the SEC’s July proxy advice rules and other rulemakings may have been affected.

Crypto Donors: As the US midterms approach, crypto donors are pouring money into the elections. Crypto-affiliated donors have donated about $70 million to political causes over the past 15 months.

FASB Ruling: The FASB has ruled that tokens like Bitcoin and Ethereum should be measured at fair market valueas that reflects the underlying economics of those transactions. “We’ve heard from investors that they want transparency through disclosure and the only way to get to that is through fair value,” said FASB member Gary Buesser.

Potential Lawsuit: Coinbase has hinted that it may sue the 1,000 users in the republic of Georgia that took advantage of a pricing glitch. Last August, local Georgian currency was priced at $290 rather than $2.90 for about six hours on Coinbase. According to Coinbase, the glitch was the fault of a “third party.”

Crypto Source: Mastercard’s new product, Crypto Source, will allow consumers to buy and sell digital assetsthrough their bank accounts, potentially paving the way for thousands of finance firms to offer crypto trading. The pilot program will start early next year in the US, Israel, and Brazil.

In the Mix: This Week’s Top FinTech Thought Leader

  • Aaron Iovine, former crypto policy head at Celsius Network, joined JP Morgan as executive director of digital assets regulatory policy. Iovine’s appointment to the newly created position comes one month after JPMorgan Chase CEO Jamie Dimon told lawmakers he was suspicious of crypto, and tokens in particular.

  • Adrienne Harris, superintendent of the New York State Department of Financial Services, said she intends to accomplish her goals partly by offering clearer guidance to banks and other financial institutions and by bolstering the resources her agency needs to do its job. One major focus is regulating emerging financial-services products, including cryptocurrency.

  • Rostin Behnam, the chairman of the Commodity Futures Trading Commission (CFTC), said that FTX’s proposal to cut out the middlemen in U.S. crypto derivatives could mark an “evolution” in the way markets work. “I think this is potentially – and I emphasize the ‘potential’ – another phase in the evolution of market structure, innovation and disruption,” Behnam said.

  • Mairead McGuinness, EU financial services chief, warned that digital assets could pose a threat to financial stability if left to grow unchecked, urging US politicians to create sweeping rules. She told the Financial Times that any regulation imposed on the industry would need to be global to work.

  • Study Hall is back with a second season! In season two we’ll explore the ins and outs of financial technology together. We’re kicking off the season with a conversation on fintech and the elections with Tarek Mansour, the Founder of Kalshi. Head on over to buzzsprout.com/1893041/11369459 for a sneak peak!