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2021-11-03
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JPMorgan to restrict trading of some U.S. cannabis stocks
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Morgan (JPMS) has introduced a framework that is designed to comply with U.S. money laundering laws and regulations by restricting certain activities in the securities of U.S. Marijuana Related Businesses,\" the bank wrote to clients.</p>\n<p>As of Nov. 8, the bank will not allow new purchases or short positions in the related businesses, but clients with existing positions will be allowed to liquidate them, it said.</p>\n<p>The restrictions apply to companies with U.S. operations that are not listed on the Nasdaq, the New York Stock Exchange or the Toronto Stock Exchange and have a \"direct nexus to marijuana-related activities.\"</p>\n<p>Nasdaq and NYSE allow certain cannabis-related companies -- including Canadian companies that do not sell cannabis in the United States - to list their shares, but will not list companies involved in the direct cultivation or sales of the marijuana plant.</p>\n<p>However, such companies have still found workarounds to trade on over-the-counter exchanges.</p>\n<p>Cowen and Co, another U.S. bank active in the cannabis trading space, in September increased its cash margin requirements for all marijuana related trades on its platform, according to a letter it sent to clients.</p>\n<p>A representative for Cowen did not immediately respond to a request for comment.</p>\n<p>Some investors have blamed recent selloffs in U.S. cannabis stocks on banks backing away from the sector and the new restrictions at JPMorgan and Cowen could add to the pressure.</p>\n<p>The MSOS exchange-traded fund , which tracks U.S. marijuana stocks, has halved in value since hitting a peak in February.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; 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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nJPMorgan to restrict trading of some U.S. cannabis stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-11-03 08:29 GMT+8 <a href=https://www.reuters.com/business/finance/exclusive-jpmorgan-restrict-trading-us-cannabis-stocks-letter-2021-11-02/><strong>Reuters</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Nov 2 (Reuters) - JPMorgan Chase & Co(JPM.N)has told prime brokerage clients it will no longer let them buy certain U.S. cannabis-related securities beginning Nov. 8, according to a letter seen by ...</p>\n\n<a href=\"https://www.reuters.com/business/finance/exclusive-jpmorgan-restrict-trading-us-cannabis-stocks-letter-2021-11-02/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"JPM":"摩根大通"},"source_url":"https://www.reuters.com/business/finance/exclusive-jpmorgan-restrict-trading-us-cannabis-stocks-letter-2021-11-02/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1166690474","content_text":"Nov 2 (Reuters) - JPMorgan Chase & Co(JPM.N)has told prime brokerage clients it will no longer let them buy certain U.S. cannabis-related securities beginning Nov. 8, according to a letter seen by Reuters.\nThe move follows similar actions by other banks, including Credit Suisse, after the high-profile collapse of private fund Archegos Capital this year left several banks nursing losses.\nThe saga drew regulatory scrutiny and prompted banks across Wall Street to review how much risk they are prepared to take on in their prime brokerage businesses.\nWhile many states have legalized the medical or recreational use of cannabis, the substance remains illegal under U.S. federal law, making it risky for banks to deal with cannabis-related businesses.\n\"J.P. Morgan (JPMS) has introduced a framework that is designed to comply with U.S. money laundering laws and regulations by restricting certain activities in the securities of U.S. Marijuana Related Businesses,\" the bank wrote to clients.\nAs of Nov. 8, the bank will not allow new purchases or short positions in the related businesses, but clients with existing positions will be allowed to liquidate them, it said.\nThe restrictions apply to companies with U.S. operations that are not listed on the Nasdaq, the New York Stock Exchange or the Toronto Stock Exchange and have a \"direct nexus to marijuana-related activities.\"\nNasdaq and NYSE allow certain cannabis-related companies -- including Canadian companies that do not sell cannabis in the United States - to list their shares, but will not list companies involved in the direct cultivation or sales of the marijuana plant.\nHowever, such companies have still found workarounds to trade on over-the-counter exchanges.\nCowen and Co, another U.S. bank active in the cannabis trading space, in September increased its cash margin requirements for all marijuana related trades on its platform, according to a letter it sent to clients.\nA representative for Cowen did not immediately respond to a request for comment.\nSome investors have blamed recent selloffs in U.S. cannabis stocks on banks backing away from the sector and the new restrictions at JPMorgan and Cowen could add to the pressure.\nThe MSOS exchange-traded fund , which tracks U.S. marijuana stocks, has halved in value since hitting a peak in February.","news_type":1},"isVote":1,"tweetType":1,"viewCount":392,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"CN","currentLanguage":"CN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":4,"xxTargetLangEnum":"ZH_CN"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/841834246"}
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