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@McSqueezyTheCow - McSqueezyTheCow

Friendly reminder that the New York Fed backstopped #UBS through its reverse repo facility.

@McSqueezyTheCow - McSqueezyTheCow

The New York Fed provided a backstop to UBS [Credit Suisse] in August. ----- Now that I have your attention, let's play a story in three parts; picture edition. Part I: Part II: Part III: ----- Now let's make it all make sense; a timeline. OCTOBER 2022 • Credit Suisse announces plan to "refocus on banking for the wealthy, including a 4 billion Swiss franc ($4 billion) capital raising, a headcount reduction of 9,000 jobs by end-2025" -- MARCH 2023 • 2022 annual report identifies "material weaknesses" in internal controls over financial reporting • After Saudi National Bank said it could not provide more support because of regulatory constraints, shares dropped by as much as 30% • Credit Suisse secures a $54 billion lifeline from the Swiss central bank to shore up liquidity, the first major global bank to get emergency funding since GFC • "The Swiss authorities provide assurances that Credit Suisse has met 'the capital and liquidity requirements imposed on systemically important banks'" (lols intensify) • Major banks including Societe Generale SA (http://SOGN.PA) and Deutsche Bank AG (http://DBKGn.DE) restrict new trades involving Credit Suisse or its securities • UBS agrees to buy Credit Suisse for 3 billion Swiss francs ($3.23 billion) (We discussed this deal previously: https://x.com/McSqueezyTheCow/status/1728317168830599268?s=20) -- JUNE 2023: • "UBS reached an agreement with the Swiss government under which the government will guarantee up to 9 billion Swiss francs ($9.98 billion) of losses UBS may incur from the sale of its rival's assets beyond 5 billion francs the lender is due to cover itself. The government's and UBS' priority was to "minimize potential losses and risks so that recourse to the federal guarantee is avoided to the greatest extent possible," -- JULY 2023: • "UBS Group AG is aiming to avoid using a $10 billion backstop for Credit Suisse amid a backlash" -- And now onto the parts of our story... AUGUST 2023: I. Credit Suisse AG, New York Branch is added as a counterparty of the NY Fed's reverse repo [RRP] facility II. UBS, who owns Credit Suisse, tells the Swiss government it no longer needs the $10 billion backstop. "UBS...said that after reviewing all the Credit Suisse assets covered by the backstop, it concluded the agreement was no longer necessary" (more lols intensify) -- SEPTEMBER 2023: III. UBS Group announces plan to house its investment-banking and trading operations in Credit Suisse’s New York offices. “As we progress with our integration, we continue to prioritize opportunities to drive stronger collaboration and deliver the best of our combined firm to our clients” ----- TLDR: Credit Suisse death spiral led to the Swiss bank being acquired by UBS, which was really a strong-arm take it or leave it arrangement initiated by Swiss National Bank (SNB) and the Swiss Financial Market Supervisory Authority (FINMA) in March. Recall that UBS only had a long weekend to take the "deal". In the weeks to follow, UBS, desperate for help, reached out to the Swiss government and was extended a $10 billion backstop. Then, in a matter of a few weeks, UBS moves its investment-banking and trading operations to Credit Suisse offices in New York--less than 10 minutes away from the NY Federal Reserve--Credit Suisse's NY branch gets added as a counterparty for reverse repos, and UBS suddenly no longer needs the $10 backstop from the Swiss government. Reverse repo data tells us that the day after Credit Suisse AG, New York Branch was added as a counterparty, the daily trade amount jumped $18.17 billion. A coincidence, I'm sure. ----- ...."this is fine!" ----- New York Fed Reverse Repo Counterparties Additions and Removals: https://www.newyorkfed.org/markets/rrp_counterparties#additions-and-removals New York Fed Reverse Repo Operations: https://www.newyorkfed.org/markets/desk-operations/reverse-repo September 13, 2023 Bloomberg article: https://www.bloomberg.com/news/articles/2023-09-13/ubs-to-move-bankers-traders-to-credit-suisse-s-new-york-offices August 11, 2023 Financial Times article: https://www.ft.com/content/d272fc75-f754-406c-a65e-0b815f16cc86 March 20, 2023 Reuters article: https://www.reuters.com/business/finance/ubs-aims-avoid-using-10-bln-credit-suisse-backstop-amid-backlash-ft-2023-07-03/#:~:text=July%202%20(Reuters)%20%2D%20UBS,second%2Dquarter%20results%20on%20Aug. July 3, 2023 Reuters article: https://www.reuters.com/business/finance/how-credit-suisse-has-evolved-over-167-years-2023-03-18/

Reverse Repo Counterparties: List & Eligibility Requirements - FEDERAL RESERVE BANK of NEW YORK newyorkfed.org

Reverse Repo Operations - FEDERAL RESERVE BANK of NEW YORK newyorkfed.org

UBS ditches $10bn state backstop for Credit Suisse deal Bank says Swiss government’s protection from losses no longer needed ft.com

@McSqueezyTheCow - McSqueezyTheCow

(ISDA) -- Re: Basel III Reform "The Federal Reserve has previously estimated that implementing these final measures could result in a capital increase of up to 20% for the largest US bank holding companies, while the Basel Committee on Banking Supervision expects the revised market risk standards will lead to a weighted average rise in capital requirements of 57% for G-SIBs." ----- Now that I definitely have your attention again, let's quickly discuss the upcoming changes GSIBs can expect. - GSIB | noun | Global Systemically Important Bank. http://Risk.net defines a GSIB as a "bank whose systemic risk profile is deemed to be of such importance that the bank's failure would trigger a wider financial crisis and threaten the global economy." - ----- But first, some housekeeping. Let's make it all make sense. Formed in 1974 by central bankers from the G10 countries and headquartered in Basel, Switzerland, the Basel Committee on Banking Supervision (BCBS) is an international committee made up of 45 members from Central Banks in 28 jurisdictions, formed to develop standards for banking regulation. More specifically, "the BCBS serves to help national banking and financial markets supervisory bodies move toward a more unified, globalized approach to solving regulatory issues". "The BCBS has developed a series of highly influential policy recommendations known as the Basel Accords". These accords have been through three phases, which are denotes as Basel I, II, and III. As the subprime-mortgage crisis, and ensuing global financial crisis (GFC) exposed cracked in previous accords, Basel III was formed. "The Basel III regulations are designed to reduce damage to the world economy from banks that take on excessive risk". And although BCBS agreed on Basel III in November of 2010, a series of extensions postponed the introduction of these accords for some time. "As of 2022, it is still in the process of implementation". "An updated version of the accord, called Basel IV, began implementation in January 2023", per Investopedia. Under Basel III: [As outlined by Investopedia] • Banks must maintain capital reserves equal to at least 8% of their risk-weighted assets • The minimum amount of equity, as a percentage of assets, is increased from 2% to 4.5% • An additional buffer of up to 2.5% required, bringing the total equity requirement to as much as 7%. This buffer can be used during times of financial stress, but banks doing so will face constraints on their ability to pay dividends and otherwise deploy capital. ----- With the groundwork done, let's jump back into some of the details of what ISDA has dubbed "Preparing for the Basel III Endgame". ----- "All around the world, banks are getting ready to implement a package of capital requirements for market risk, credit risk and operational risk that will finally complete the Basel III reforms developed in response to the 2008 financial crisis. Within days, US prudential regulators are expected to publish their legislative proposals, following similar proposals in the UK and the EU. As in those jurisdictions, it is critical that the impact of the proposed rules is thoroughly tested and any increase in capital requirements does not disproportionately affect costs for businesses, consumers and investors." "Implementing additional capital requirements is a complex challenge. The Basel III regulatory reforms are long overdue, but, as many policymakers have recognized, a further significant increase in capital requirements could have serious consequences. The Federal Reserve has previously estimated that implementing these final measures could result in a capital increase of up to 20% for the largest US bank holding companies, while the Basel Committee on Banking Supervision expects the revised market risk standards will lead to a weighted average rise in capital requirements of 57% for G-SIBs." ----- Are bank's capital requirements really that much? To give a bit of perspective, according to ISDA, in the fourth quarter of 2022 alone, "US global systemically important banks (G-SIBs) held roughly $881 billion in common equity tier-one capital". ----- If these reforms address capital concerns, then banks must be good now, right? Safe sailing from here on out? No! This ISDA news letter highlights many concerns: • If not tested properly, increased capital requirements can "disproportionately affect costs for businesses, consumers and investors" • "Recent periods of stress sparked by the pandemic in 2020 and the invasion of Ukraine in 2022 have highlighted certain liquidity imbalances that may warrant attention". While the newsletter goes on to say "there has been no evidence that banks were holding insufficient market risk capital to weather those shocks", I would not expect that all after-effects of these market shocks have been fully felt yet. Additionally, if market shocks have been felt, have they been properly documented and/or reported? So, I take that with a huge grain of salt. •"If banks are forced to ramp up their trading book capital by more than 50%, it could result in higher costs for end users and may force some firms to withdraw from certain businesses" • "All banks above a certain size will have to use standardized models to calculate capital requirements for market risk, while the use of internal models will be subject to a much more stringent approval process and ongoing tests that will substantially increase maintenance costs" ----- The publication of the US proposals are expected later this week. ----- TLDR: New policy recommendations are coming for banks which will outline the required amount of capital, equity, and buffers that are to be held by banks. Basel III will be especially troubling for the largest banks, GSIB's, as capital requirements, which are generally between 6-8%, could jump to 20%, or as high as 57%, based on expectations of the Fed and BCBS, respectively. With 2023 already proving to be a difficult year for banks, the FDIC, and other entities, it seems the worse may still be yet to come. I sure hope those bank stress tests were up to scratch, because if a large enough bank gets in a capital crunch during a market stress event or black swan event, things can get very interesting and insolvent-y. And we already know these banks have a mountain of derivatives, trillions in uninsured deposits among them, and a myriad of other factors that could be the straw that breaks the proverbial camel's back. ----- TICK! TOCK! ----- #SystemicRisk #FinancialCrisis #WallStreet #BankingCrisis #FDIC #MemeBanks #Risk #Capital #GSIB #TwitterNews July 25, 2023 ISDA News - Preparing for the Basel III Endgame: https://www.isda.org/2023/07/25/preparing-for-the-basel-iii-endgame/ Investopedia - Basel III: What It Is, Capital Requirements, and Implementation: https://www.investopedia.com/terms/b/basell-iii.asp Investopedia - Understanding the Basel III International Regulations: https://www.investopedia.com/articles/economics/10/understanding-basel-3-regulations.asp Investopedia - Basel Committee on Banking Supervision: Meaning, How it Works: https://www.investopedia.com/terms/b/baselcommittee.asp Investopedia - Tier 1 Capital: https://www.investopedia.com/terms/t/tier1capital.asp http://Risk.Net - Global Systemically Important Bank Definition: https://www.risk.net/definition/global-systemically-important-bank-g-sib#:~:text=A%20global%20systemically%20important%20bank,and%20threaten%20the%20global%20economy

Risk.net - Financial Risk Management News Analysis The world's leading source of in-depth news and analysis on risk management, derivatives and regulation risk.net

Preparing for the Basel III Endgame – International Swaps and Derivatives Association isda.org

Basel III: What It Is, Capital Requirements, and Implementation Basel III is a set of reform measures intended to improve regulation, supervision, and risk management in the international banking sector. investopedia.com

Understanding the Basel III International Regulations The Basel III regulations marked drastic reform in international banking. But how will they affect the worldwide economy? investopedia.com

Basel Committee on Banking Supervision: Meaning, How it Works The Basel Committee on Banking Supervision is an international committee of central bankers from 27 countries and EU formed to regulate banking. investopedia.com

Tier 1 Capital: Definition, Components, Ratio, and How It's Used Tier 1 capital is used to describe the capital adequacy of a bank and refers to its core capital, including equity capital and disclosed reserves. investopedia.com

Risk.net - Financial Risk Management News Analysis The world's leading source of in-depth news and analysis on risk management, derivatives and regulation risk.net

Global systemically important bank (G-Sib) definition - Risk.net A global systemically important bank is bank whose systemic risk profile is deemed to be of such importance that the bank’s failure would trigger a wider financial crisis and threaten the global economy. The Basel Committee has developed a formula for determining which banks are G-Sibs, deploying criteria including size, interconnectedness and complexity. National regulators subject banks determined to be G-Sibs to stricter prudential regulation such as higher capital requirements and extra surcharges, or more stringent stress tests. Click here for articles on global systemically important banks.  risk.net

@McSqueezyTheCow - McSqueezyTheCow

Citigroup, the parent company of Citibank, reported that 85.74% of their $1.286 trillion in deposits are uninsured, according to call report data for the period ending September 30th. Schedule RC - Balance Sheet (Form Type - 031) tells us that Citigroup has: • $721,253,000,000 of deposits in domestic offices, and • $564,851,000,000 of deposits in foreign offices Schedule RC-O - Other Data for Deposit Insurance and FICO Assessments(Form Type - 031) tells us that Citigroup has: $537,913,000,000 of estimated uninsured deposits in domestic offices, such as Puerto Rico and other U.S. territories. ----- A quick segue.. for housekeeping "The call report collects basic financial data of commercial banks in the form of a balance sheet, an income statement, and supporting schedules. The Report of Condition schedules provide details on assets liabilities, and capital accounts. The Report of Income schedules provide details on income and expenses", according to the Federal Reserve Bank of Chicago. ----- The Maths... Part I. $721,253,000,000 Domestic Deposits + $564,851,000,000 Foreign Deposits -------------------------------------------- $1,286,104,000,000 Total Deposits Part II. $564,851,000,000 Foreign Deposits + $537,913,000,000 Uninsured Domestic Deposits -------------------------------------------------------- $1,102,764,000,000 Total Uninsured Deposits Part III. $1,102,764,000,000 Total Uninsured Deposits / $1,286,104,000,000 Total Deposits X 100 = 85.7445 Wayment, Squeezy! Why so many uninsured deposits? Per FDIC’s September 2013 Final Rule on the Definition of Deposits at Foreign Branches of U.S. Banks Press Release, a final rule was approved clarifying that “deposits in foreign branches of U.S. banks are not FDIC-insured." ----- Okay. So, why does all of this matter?? Simply put, uninsured deposits are a risk to banks, as they can lead to a depositor run on a bank. According to FDIC, "Uninsured depositor runs triggered the failures of Silicon Valley Bank and Signature Bank in March 2023". ----- Let's delve deeper, shall we? As pointed out by Jiang et al. in their working paper, “Monetary Tightening and U.S. Bank Fragility in 2023: Mark-to-Market Losses and Uninsured Depositor Runs?” • “…unlike insured depositors, uninsured depositors stand to lose a part of their deposits if the bank fails, potentially giving them incentives to run” • “If uninsured deposit withdrawals cause even small fire sales, substantially more banks are at risk” • “…for sufficiently high increases in interest rates, we have multiple equilibria in which uninsured depositor run[s] making banks insolvent becomes a possibility” • “Even if only half of uninsured depositors decide to withdraw, almost 190 banks with assets of $300 billion are at a potential risk of impairment” • "...even if only 10% of uninsured depositors decided to withdraw their money, we would have 66 banks failing with about $210 billion of assets. If 30% of uninsured depositors ran instead, which is close to the share of withdrawals just preceding the shutdown of the SVB, we would have 106 banks failing accounting for $250 billion of assets" • "SVB had a disproportional share of uninsured funding" ----- What's more?? "The FDIC estimates that of the total cost of the failures of Silicon Valley Bank and Signature Bank, approximately $15.8 billion was attributable to the protection of uninsured depositors." ----- TLDR: Citi is still fukt! ----- #SystemicRisk #FinancialCrisis #LiquidityCrisis #BankingCrisis #MemeBank #Citi #SoldNotYetPurchased #Naked #Derivatives #Liabilities #BankRun #UninsuredDeposits Federal Financial Institutions Examination Council (FFIEC) Central Data Repository's Public Data Distribution - Institution Reports: https://cdr.ffiec.gov/public/ManageFacsimiles.aspx# Federal Reserve Bank of Chicago Call Report - Regulatory Reporting Guidance: https://chicagofed.org/banking/financial-institution-reports/call-report-regulatory-reporting-guide#:~:text=The%20Call%20report%20collects%20basic,details%20on%20income%20and%20expenses May 11, 2023 FDIC Press Release: https://fdic.gov/news/press-releases/2023/pr23037.html May 1, 2023 FDIC Options for Deposit Insurance Reform: https://fdic.gov/analysis/options-deposit-insurance-reforms/report/options-deposit-insurance-reform-full.pdf April 2023 Monetary Tightening and U.S. Bank Fragility in 2023: Mark-to-Market Losses and Uninsured Depositor Runs?: https://gsb.stanford.edu/faculty-research/working-papers/monetary-tightening-us-bank-fragility-2023-mark-market-losses

View or download data for individual institutions - FFIEC Central Data Repository's Public Data Distribution cdr.ffiec.gov

Call Report - Regulatory Reporting Guidance - Federal Reserve Bank of Chicago chicagofed.org

FDIC Board of Directors Issues a Proposed Rule on Special Assessment Pursuant to Systemic Risk Determination | FDICShare on XFollow the FDIC on X For Release WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) Board of Directors today approved a notice of proposed rulemaking, which would implement a special assessment to recover the cost associated with protecting uninsured depositors following the closures of Silicon Valley Bank and Signature Bank . fdic.gov

Monetary Tightening and U.S. Bank Fragility in 2023: Mark-to-Market Losses and Uninsured Depositor Runs? gsb.stanford.edu

@McSqueezyTheCow - McSqueezyTheCow

Citigroup, the parent company of Citibank, reported $109.851 billion in "Securities sold, not yet purchased" in its most recent quarterly report, for the period ending September 30th. #SystemicRisk #FinancialCrisis #LiquidityCrisis #BankingCrisis #MemeBank #Citi #SoldNotYetPurchased #Naked #Derivatives #Liabilities Citigroup Form 10-Q for the Quarterly Period Ended September 30, 2023: https://www.citigroup.com/rcs/citigpa/storage/public/Citi-3Q23-10-Q-FINAL.pdf

@McSqueezyTheCow - McSqueezyTheCow

When we last left off our discussion on former #FTX-US President @brettharrison88, we briefly discussed his employment history. Let's continue today by highlighting some direct and indirect relationships of the man of the hour; give or take a few degrees of separation. "What a tangled web we weave when first we practice to deceive" - Unknown -- But first, a recap of Brett's present and past: • Founder and CEO at Architect [.xyz], a decentralized finance (DeFi) platform aimed at streamlining the crypto market structure equipping financial institutions with innovative technological solutions for trading futures, options, tokenized assets, and more • Head of Semi-Systematic Technology at #Citadel Securities, where he managed Options, ETF, ADR, and OTC technology groups • Senior Software Developer at Headlands Technologies LLC, a privately funded global quantitative trading company that develops and implements quantitative trading strategies in exchange-traded financial (ETF) products, such as equities and other securities • Head of Trading Systems Technology at Jane Street, where he led the firm’s algorithmic trading system development • Studied at Harvard, earning a BS and MS in Computer Science. It was through Harvard that Harrison would come to intern at Jane Street. As a student intern at Jane Street, Harrison started on the American depositary receipts (ADR) desk as a trader. --- Why does this matter, Squeezy?? Great question! First, there is the obvious implication of being President of a company who perpetrated and is now on trial for fraud, losing billions of investor dollars, and causing a chain reaction of loss and damages within the crypto industry. Second, of late, Brett Harrison--or a bot--has gone on a block-party, seemingly insulating himself from any and everyone who posts [and/or reposts] anything regarding himself, FTX #stokens, and the like. (..interesting!) Lastly, and what is really the heart of today's post; interconnectedness. If we look at present and past connections of Brett Harrison, there are a myriad of conclusions which could be drawn and relationships that could--and frankly should-- be scrutinized. ----- So, let's go back to the beginning... Harvard! Here we see a young, bright-eyed, and bushy-tailed Brett Harrison pictured next to Pablo Azar when they were both staff at The Harvard College Mathematics Review. Connection I: Pablo Azar would later go on to become the Chief Economist for Algorand, as well as a Financial Economist for the Federal Reserve Bank of New York, after completing two PhD's at MIT. Who or what is Algorand?, you ask. Designed to improve blockchain decentralization, Algorand is a Boston-based blockchain company created by MIT professor Silvio Micali "that aims to create a truly democratic and efficient public ledger". (Both Silvio Micali and SEC Chair Gary Gensler have ties to MIT's Digital Currency Initiative; the outfit that worked with the Fed on "Project Hamilton"; CBDC). Algorand would go on to create and sell its own coin, ALGO, which would ultimately help the company increase its market cap to $24 billion. Quick fun fact: Since graduating in 1989, Ken Griffin has donated over $500 million to the Faculty of Arts and Sciences (FAS). The Harvard Gazette writes, "In recognition of Griffin’s commitment to Harvard’s mission over the years, the Graduate School of Arts and Sciences will be renamed the Harvard Kenneth C. Griffin Graduate School of Arts and Sciences in his honor." ..I bet that makes it easy to recruit the best and the brightest minds, hey Kenny? Connection II & III: John Clarke and Owen Colegrove founded Algofi, low-cost crypto lending market on the Algorand blockchain. Prior to Algorand, Colgrove was a Quantitative Strategist at Citadel, and Clarke a Quantitative Trader. ----- Onto Jane Street! I'll save the "quantitative trading firm and liquidity provider with a unique focus on technology and collaborative problem solving" rigamarole, as many are likely aware of Jane Street, since it's often mentioned in conjunction with Citadel, BlackRock, Vanguard, etc. Connection: Jane Street is important to this story because it is where Brett Harrison would meet a young hopeful presidential candidate, Sam Bankman-Fried. (lols intensify) Bankman-Fried would go on to be co-founder and CEO at crypto exchange FTX. ----- Heartlands Tech... While developing software for the company, Brett worked under CEO Matthew (Matt) Andersen. Connection: Prior to being CEO at Heartlands, Andersen was previously: • Managing Director at Citadel Investment Group • Co-CEO at Citadel Derivatives Group and served on the: • SEC’s Equity Market Structure Committee (“EMSAC”), as well as the • SEC’s Fixed Income Market Structure Committee (“FIMSAC”) ----- Onto Citadel... of course. The hedge fund - market maker that was started in a Harvard dorm room in the 80's after Ken Griffin sweet-talked staff into letting him install a satellite dish on the roof of the Cabot house to trade bonds with $265,000 raised from family members and friends. Connection: Heath Tarbert, who is now Chief Legal Counsel and Head of Corporate Affairs at Circle, was previously Chief Legal Officer at Citadel, Vice Chair, Board of Directors at International Organization of Securities Commissions, Chair & Chief Executive at CFTC, and worked at the Dept of the Treasury. Fun Fact: Circle was a sponsor of Crypto Bahamas, an "invitation-only event featuring collaboration and networking among leading players in the crypto and traditional finance industry" hosted April 26 - 29 of last year, hosted by FTX and #SALT. SALT is a global thought leadership and networking forum encompassing finance, technology and geopolitics. SALT’s biannual events and technology solutions connect leading asset managers and entrepreneurs with top asset owners, investment advisors and policy experts. ----- The exchange that needs no introduction... FTX! Connection I: Mark Wetjen, who currently “advises on derivatives, digital assets, and financial technology matters for Patomak Global Partners" was previously FTX's former Head of Policy & Regulatory Strategy, #DTCC Managing Director and Head of Global Public Policy, and Chairman of the DTCC Deriv/SERV LLC (Deriv/SERV) Board of Director. Fun Fact: At Crypto Bahamas, Wetjen said: "with a couple agencies where Chris and I used to serve, there's actually a fair amount of flexibility in how the regulations are written.” (...convenient!) As it turns out, Mark was referring to Chris Giancarlo. Oh, and that agency where they both used to work??? ….Commodity Futures Trading Commission (or #CFTC), where Mark was an Acting Chair and Commissioner and Chris the Chair. Connection II: Current Co-Founder at Paradigm, former Partner at Sequoia, and MIT alum, Matt Huang has praised both FTX and Citadel. "Paradigm has been fortunate to be an investor in FTX's global business, and we are thrilled to invest in FTX US. The team is world class and their focus on great products and regulatory engagement will help ensure access to crypto for millions of Americans." Oh, and if you're wondering if those are the same Paradigm and Sequoia that pumped $1.15B into Citadel Securities in November 2021, you would be correct. "Citadel Securities has developed software and algorithms that have driven substantial improvement to market structures for the benefit of institutional and retail investors everywhere," said Matt Huang, Co Founder and Managing Partner of Paradiqm. "We look forward to partnering with the Citadel Securities team as they extend their technology and expertise to even more markets and asset classes, including crypto." ----- Onto present day, and what Brett Harrison is up to these days. Well, besides blocking people, that is. Brett is now founder and CEO at Architect, which "builds trading software tailored toward large investors and institutions". Architect offers: • Future Spreads • Options Combos • Events Contracts • Agricultural Hedges • Perpetual Swaps • FX Options • Stock Index Futures • Commodity Derivatives • Digital Assets • Fixed Income Options --- Architect's investors are: • SVAngel • Coinbase • Motivate Venture Capital • CIRCLE [also sponsored Crypto Bahamas] • P2P • SALT Fund [Hosted Crypto Bahamas with FTX] • Third Kind Venture Capital By the way, if you weren't following the timeline.. 1. Brett is President of FTX-US from May 2021 to September 2022 2. FTX collapses in November 2022, and then 3. Brett starts Architect in January 2023, which is interesting, given Brett Harrison was still looking for outside funding to start his newest venture in December of 2022. They were looking for $6 million on a $60 million valuation. According to Harrison, Architect will be helping “people to get their confidence back in trading in this industry" Connection/Fun Fact: Anthony Scaramucci, founder of hedge fund Skybridge Capital was an investor in Architect's seed round. According to Coin Desk, "a couple of the investors who participated had their own ties to the fallen exchange. FTX previously purchased a 30% stake in Scaramucci’s hedge fund, SkyBridge Capital, and participated in Circle’s $440 million fundraising round in 2021." Bloomberg quotes Scaramucci, "SkyBridge had taken a reputational hit because of its alliance with former crypto exchange FTX chief executive Sam Bankman-Fried, who is on trial in New York for fraud and misuse of FTX customer money." ---- To summarize: Harrison has been his best to distance himself from disgraced FTX, and his ties to the fallen crypto exchange, and its CEO. Coin Desk quoted Harrison, “It’s clear from what has been made public that the scheme was held closely by Sam and his inner circle at FTX. com and Alameda, which I was not a part of, nor were other executives at http://FTX.US,” Harrison wrote. “I understand now why they carefully concealed their criminal activity from us. We have extensive professional networks, our own lines of communication with US regulators and our own authority to speak to US media.” However, Harrison's relationships, influence, and experience, highlights just why he would want to get as far away from FTX as possible. And considering things like FTX backdoors , which allowed access to Alameda, and Harrison's ties to individuals at CFTC, DTCC, SEC, Citadel, and more, the serendipitous timing of his exit from FTX and launching a new business in the very vein of FTX.... makes you think. ----- "probably nothing", though... right, Brett?? ----- #SystemicRisk #Crypto #Leverage #Alameda #StockMarket #MarketMaker #SBF #CryptoScandal #PonziScheme http://Architect.XYZ: https://www.architect.xyz/ Crypto Bahamas: https://www.cryptobahamas.com/ Harvard Mathematics Department Harvard College Mathematical Review [January 10, 2008 HCML Welcome Party]: https://legacy-www.math.harvard.edu/hcmr/index.html Spring 2007 The Harvard College Mathematics Review: https://legacy-www.math.harvard.edu/hcmr/issues/1.pdf LinkedIn - Pablo Azar: https://www.linkedin.com/in/pablo-azar-5a187923/ NY Fed - The Financial Stability Implications of Digital Assets: https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr1034.pdf June 21, 2019 CryptoSlate article: https://cryptoslate.com/algorand-token-sale-implies-6-billion-market-cap/ MIT Digital Currency Initiative - People: https://dci.mit.edu/people Fintech Finance News - About Algorand: https://ffnews.com/companies/algorand/ PR Newswire August 26, 2021 article: https://www.prnewswire.com/news-releases/y-combinator-and-citadel-alums-launch-defi-lending-protocol-algofi-on-the-algorand-blockchain-301363928.html LinkedIn - Owen Colegrove: https://www.linkedin.com/in/owencolegrove/ LinkedIn - John Clarke: https://www.linkedin.com/in/jaclarke1/ TheOrg - Headlands Technologies Org Chart: https://theorg.com/org/headlands-technologies-llc/org-chart/matthew-andresen LinkedIn Matthew (Matt) Andersen: https://www.linkedin.com/in/matt-andresen-6240515/details/experience/ LinkedIn - Heath Tarbert: https://www.linkedin.com/in/heath-tarbert-b2140a15/ Crypto Bahamas - Speakers: https://www.cryptobahamas.com/speakers January 26, 2022 PR Newswire article: https://www.prnewswire.com/news-releases/ftx-us-closes-400m-series-a-round-301468435.html Paradigm - Matt Huang: https://www.paradigm.xyz/team/matthuang LinkedIn - Matt Huang: https://www.linkedin.com/in/kmhuang/details/experience/ October 24, 2016 NY Federal Reserve - The Evolving Structure of the U.S. Treasury Market: Second Annual Conference - Participants in Attendance: https://www.newyorkfed.org/medialibrary/media/newsevents/events/markets/2016/Participants-in-Attendance-2016.pdf?sc_lang=en&hash=D9F63334BFF2588FC9EE8DD9BFFE5EA4 January 20, 2023 Coindesk article: https://www.coindesk.com/business/2023/01/20/ex-ftx-us-head-raises-5m-for-startup-months-after-exchange-collapse/ Crunchbase - Seed Round - Architect: https://www.crunchbase.com/funding_round/architect-seed--060a607b October 31, 2023 Bloomberg article: https://www.bnnbloomberg.ca/scaramucci-says-his-hedge-fund-likely-had-best-monthly-returns-ever-1.1992141 April 14, 2010 Reuters article: https://www.reuters.com/article/citigroup-skybridge-idUSN1425814520100414 April 11, 2023 The Harvard Gazette article: https://news.harvard.edu/gazette/story/2023/04/kenneth-c-griffin-makes-gift-of-300-million-to-fas/ December 4, 2022 http://Chainsaw.com Twitter Thread:

FTX Homepage ftx.us

Architect | Cross-asset technology for evolving markets Fast, flexible, and secure financial infrastructure for exchanges, trading firms, hedge funds, and professional investors architect.xyz

Architect | Cross-asset technology for evolving markets Fast, flexible, and secure financial infrastructure for exchanges, trading firms, hedge funds, and professional investors architect.xyz

Crypto Bahamas An exclusive gathering of the leading investors and builders in the blockchain, digital assets and web3 space cryptobahamas.com

Harvard Mathematics Department : Harvard College Mathematical Review Harvard College Mathematical Review legacy-math.harvard.edu

Pablo Azar | LinkedIn View Pablo Azar’s profile on LinkedIn, the world’s largest professional community. Pablo has 2 jobs listed on their profile. See the complete profile on LinkedIn and discover Pablo’s connections and jobs at similar companies. linkedin.com

Algorand token sale implies $6 billion market cap, ranking below EOS and above Binance Coin Following a $60 million tokensale, Algorand currently has a market cap of $6 billion, which would put it at seventh above Binance Coin and below EOS. cryptoslate.com

People — MIT Digital Currency Initiative dci.mit.edu

Algorand - Fintech Finance Algorand is building the technology to power the Future of Finance (FutureFi), the convergence of […] ffnews.com

Y Combinator and Citadel Alums Launch DeFi Lending Protocol Algofi on the Algorand Blockchain /PRNewswire/ -- Algofi today announces the upcoming launch of its fast, low-cost, decentralized lending market on the Algorand blockchain. The protocol is... prnewswire.com

Owen Colegrove | LinkedIn View Owen Colegrove’s profile on LinkedIn, the world’s largest professional community. Owen has 5 jobs listed on their profile. See the complete profile on LinkedIn and discover Owen’s connections and jobs at similar companies. linkedin.com

John Clarke | LinkedIn View John Clarke’s profile on LinkedIn, the world’s largest professional community. John has 3 jobs listed on their profile. See the complete profile on LinkedIn and discover John’s connections and jobs at similar companies. linkedin.com

Matthew Andresen - Founder & CEO at Headlands Technologies | The Org Matthew Andresen is the co-founder and CEO of Headlands Technologies LLC, a global quantitative proprietary trading firm headquartered in Chicago, with off theorg.com

Heath Tarbert | LinkedIn Heath P. Tarbert is Chief Legal Officer and Head of Corporate Affairs at Circle, a global… | Learn more about Heath Tarbert's work experience, education, connections & more by visiting their profile on LinkedIn linkedin.com

Speakers cryptobahamas.com

FTX US Closes $400M Series A Round /PRNewswire/ -- West Realm Shires Services Inc. ("FTX US" or "the Company"), today announced the closing of a $400 Million Series A round valuing the Company... prnewswire.com

Team - Matt Huang - Paradigm Matt Huang is co-founder and Managing Partner at Paradigm. Previously, Matt was a partner at Sequoia Capital focusing on early-stage venture investments including leading the firm’s cryptocurrency efforts. Matt was the founder and CEO of Hotspots, a Y Combinator company acquired by Twitter in 2012, and angel investor in companies such as Bytedance and Instacart. He purchased his first Bitcoin from MtGox in 2012. Matt holds a B.S. in Mathematics from MIT. paradigm.xyz

Ex-FTX.US Head Raises $5M for Startup Months After Exchange's Collapse Brett Harrison's project received investments from the venture arms of Coinbase and Circle. coindesk.com

Scaramucci Says His Hedge Fund Likely Had Best Monthly Returns Ever - BNN Bloomberg SkyBridge Capital founder Anthony Scaramucci said investments in Bitcoin, technology and other cryptocurrencies probably resulted in the best monthly returns ever for the hedge fund company. bnnbloomberg.ca

NEWSMAKER-SkyBridge founder bets on more hedge fund demand * SkyBridge founder bets small investors will fuel growth reuters.com

Kenneth C. Griffin makes gift to FAS Graduate School of Arts and Sciences named in honor of alum’s four decades of philanthropy, support for expanding opportunity, advancing excellence. news.harvard.edu