Mitsubishi Corp.'s Singapore-based Petro-Diamond Singapore lost $320 million due to an oil trader who was "repeatedly engaging in unauthorized derivatives transactions and disguising them to look like hedge transactions." The PDS employee was fired, though Mitsubishi declined to give any more details.
European Commission's Patrick Pearson told an industry conference that a no-deal Brexit will not lock out EU derivatives market participants from UK clearing houses. Pearson addressed concerns that the temporary recognition may not be extended if the Brexit date is pushed back again by saying regulators can act "very, very quickly."
Robert Ophele, chairman of France's Autorite des Marches Financiers, says not giving EU firms leeway to trade derivatives in the UK will cause an exodus of derivatives trading away from Europe. "A too broad scope of trading obligation could penalize EU financial institutions and most of their clients," Ophele told a conference.
The rapid advancement of new technologies that offer new opportunities also come with risks and regulators must work together with tech innovators to develop "a modern framework for regulating these technologies," writes FIA President & CEO Walt Lukken.
TP Icap, which recently acquired compression service ClearCompress, says the shift away from Libor opens up compression opportunities the firm plans to explore. TP Icap's Adam Roberts says with the move to risk-free-rates, people "are going to want to compress everything that they can in those markets with as little disruption as possible in a targeted fashion."
Built Robotics, a startup focused on automation in construction, raised $33 million in a funding round. The new capital will be used to hire more engineers and expand the uses for the company's AI systems.
If WeWork doesn't complete a now-postponed $3 billion initial public offering by Dec. 31, it will lose access to a critical $6 billion loan, sources said. The loan agreement reportedly does not include any extension options.
Beijing-based educational startup VIPKid will receive a $150 million investment from China's Tencent Holdings, sources said. Some US lawmakers and officials have expressed concern about the data stored by VIPKid, which relies on teachers in the US and elsewhere to offer online English lessons.
Transportation startup Wunder Mobility, based in Germany, has raised an additional $30 million, bringing its Series B total to $60 million. The company, which already has customers in the US, has also announced the opening of a US headquarters.