Cryptos: Marex to offer crypto-linked notes via Luma

Luma’s Creation Hub is an automated request for quote (RFQ) functionality aimed at simplifying the process for constructing and modifying custom deals through a customisable workflow that connects advisors directly to the pool of issuers onboarded at Luma.

"We have enabled some crypto linked products on Luma for Latam clients, and are support Marex to share these with client advisors covering Latin America," David Wood, managing director of Luma’s International Business, told SRP. "Users have acces to the products along with pricing provided by Marex, and then Luma will manage the lifecycle of the products. We are just making it a bit easier to access, and everything sits alongside the advisors other structured products in their portfolio."

In the US, Marex transacts in RegS notes which regulate the sale of structured notes in non-US jurisdictions as opposed to a US registered shelf or exempt bank note programme.

The non-banking issuer of structured products joined Luma in December 2021 to capitalise on the multi-issuer platform’s client base to expand its reach. Marex Financial Products’ structured notes business in the US is headed by Sebastian Lutz, head of financial products, equity derivative sales, North America, in New York.

Lutz joined Marex in April 2021 from Société Générale Corporate and Investment Banking - SGCIB where he had a one-year stint as a director. He joined the French bank as part of the Commerzbank where he was head of equity derivatives and commodities institutional sales North America.

Eqonex bolsters asset management business

Digital assets financial services company Eqonex has announced two appointments to its asset management business with responsibility for the company’s flagship Bletchley Park Multi-Strategy Fund.

Simon Goodman will join as the chief investment officer, while Benjamin Nudel has been appointed as the head of investment research. Both Goodman and Nudel will be based in London and report to Frank Copplestone, Eqonex head of asset management.

Goodman will also take a seat on the fund manager's investment committee. Goodman most recently, he co-founded PSG Digital, a cryptocurrency-focused investment firm with operations in London and New York, and Peregrine, a next-generation blockchain digital asset allocator. Prior to joining the digital asset industry in 2016, Nudel spent nine years in investment banking, holding roles with HSBC, Société Générale and BNP Paribas. 

The new hires follow the recent appointments of Nick Cogswell (above-right) to head of sales, Asset Management in London and Franklin Heng to head of asset management Asia, based in Hong Kong.

Eqonex Asset Management has two business lines including investment products, and the fund. The Investment Products business recently received prospectus approval from Germany's Federal Financial Supervisory Authority (BaFin) which resulted in the launch of the Eqonex Bitcoin Exchange-Traded Note (ETN) on the Deutsche Börse Xetra Exchange in July 2022.

Eqonex has also announced the launch of a structured products business that will offer professional investors and institutions exposure to bespoke crypto investments.

US SEC to treat cryptos like the rest of the capital markets

There is no compelling reason to treat the crypto market differently to other capital markets sectors because ‘it utilizes an alternate innovation’, according to the US Securities Exchange Commission (SEC) chairman Gary Gensler (right).

In an op-ed piece published by the Wall Street Journal, Gensler said that the SEC will act as the ‘cop on the beat’ to protect investors and will continue to enforce securities laws when new technologies come along.

‘There’s no reason to treat the crypto market differently from the rest of the capital markets just because it uses a different technology,’ he wrote.

Gensler noted that recent market events show why it is critical that crypto firms comply with securities laws.

‘It doesn’t matter what kind of asset an investor puts into a crypto app — cash, gold, bitcoin, chinchillas or anything else; it’s what the crypto platform does that determines what protections are provided by the law,’ Gensler wrote.

‘Investors benefit from knowing what stands behind the crypto firm’s claims that it will provide a certain return. Disclosure helps the investor understand what is being done with his or her assets.’

According to Gensler, crypto platforms can’t avoid complying with ‘time-tested investor protections by sticking a label on the product or on the promised benefits, whether it’s called a lending platform, a crypto exchange or a decentralized finance platform’.

Noncompliance isn’t the inevitable result of the crypto business model or underlying crypto technology. Rather, it is as if these platforms are saying they have a choice — or even worse, saying “Catch us if you can”, Gensler noted.

Hashdex receives European approval

Hashdex received permission to list its exchange-traded products (ETPs) in the European Union following the approval of its European Base Prospectus filed with the Swedish Financial Supervisory Authority (SFSA) earlier in May.

The approval will support the company’s efforts to expand its product suite of digital-asset strategies in the European Union.

‘Hashdex is working closely with the relevant services providers, including exchanges, to list its family of ETPs in the European Union and ensure that they are readily available to investors in their local markets and through local platforms,’ said head of new markets Bruno Sousa (right).

Hashdex entered the European market in May 2022 with the launch of its first European product, the Hashdex Nasdaq Crypto Index Europe ETP on the Six Swiss Exchange, ‘which has seen relevant net inflows since its listing despite challenging market conditions’.

Hashdex has listed six new products globally year to date.

Samsung to launch crypto exchange in South Korea next year

Samsung Securities is taking a second attempt at launching its own cryptocurrency platform, with its initial plans reportedly thwarted by a lack of key talent, South Korean media reported on Monday.

Samsung’s investment arm is one of seven domestic brokerages looking to start operating a crypto exchange in the first half of next year. Talks with local authorities over securing licensing are said to be in advanced stages, according to media reports.

Previous attempts to launch the exchange were stalled last year when the business was reportedly unable to hire the right professionals to run it.

Samsung Securities is also reportedly conducting a study on how best to enter the blockchain business and keep pace with developments in the digital asset industry.

Earlier this month, Samsung Securities was one of three financial institutions in South Korea to partner with the country’s largest exchange, Bithumb, enabling customers to check the status of crypto investments through Samsung’s own app.

Samsung Securities was the first to launch a global blockchain exchange-traded fund (ETF) in Asia.

Mirae Asset Securities and five other domestic companies are also planning to launch their own platforms.

Image: Phongphan Supphakank/Adobe Stock.