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Rather than backtracking trade activities after the fraud has occurred, the CFTC commissioner believes the focus should be on preventing them.
A commissioner of the Commodity Futures Trading Commission (CFTC), Christy Goldsmith Romero has proposed several measures to improve investor protection. Romero made the proposal while speaking at the North American Securities Administrators Association’s annual meeting in California.
According to the Federal Trade Commission, Americans reportedly lost about $3.8 billion in 2022 to investment scams. This suggests a greater need to protect investors.
Romero emphasized the need for the government to keep pace with innovations to enact the right policies that will help investors. She said:
“It is critical that we have a foundational understanding of the technology, and its implications for finance and law.”
Thereafter, the commissioner appointed Financial technology experts in responsible artificial intelligence, cryptocurrency, blockchain, and cybersecurity. These experts would join the CFTC’s Technology Advisory Committee (TAC).
Among other things, TAC experts are to identify novel ways to incorporate Know Your Customer (KYC) and Anti-money Laundering (AML) measures into decentralized finance and crypto investments. The experts also promote responsible artificial intelligence (AI) development.
A Different Approach
Rather than backtracking trade activities after the fraud has occurred, Romero believes the focus should be on preventing them. From tracking intent through social media platforms like X and Reddit, the CFTC commissioner believes regulators can be more proactive.
She noted that it will be necessary for regulators to embrace different tools if this is to be the case.
“Tracing funds, tracing crypto, using the blockchain, using link analysis, using social media, and data analytic tools should all be in a regulators’ tool kit,” she concluded.
National Financial Fraud Registry Can Improve Investor Protection
Meanwhile, Romero has also proposed the establishment of a National Fraud Registry. She acknowledged the efforts by regulators to compile databases of disciplinary actions or consumer complaints. However, she noted the lack of a national database to make it easier for investors to search across federal agencies or state regulators.
“A centralized registry would make it easier for the government to identify repeat offenders and deter potential fraudsters,” Romero said. She also noted that it would help the public verify people before committing their money, trust, and business.
This is not the first time Romero has proposed such an approach. She first floated the idea in 2019, but the proposal failed to gain traction. This time, Romero promises to circulate the idea among federal agencies and get feedback from various groups.
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In Tuesday’s post-trading session, biotech firm Novavax saw its stock surge following “significant measures” taken to operate more efficiently.
Novavax Inc (NASDAQ: NVAX) recently experienced a stock surge following several key announcements by the biotech company. On Tuesday, NVAX jumped 30% on news that Novavax had promising new Covid and flu vaccine data. Furthermore, the Maryland-based company also announced cost-cutting measures, including a 25% staff downsizing.
Novavax’s announcements offer a ray of hope to investors after the preceding quarter when the company doubted its ability to remain competitive. At the time, vaccine developers refrained from providing full-year guidance due to the uncertainty of its future. However, it now banks on sweeping cost control actions and new influenza and Covid vaccines to remain profitable. The Novavax stock surge also came along with the company’s first-quarter report.
Novavax Stock Surge Propelled by Bright Optics in Latest Quarterly Report
In its Q1 2023 earnings report, the company forecasted full-year sales of between $1.4 billion and $1.6 billion.
On Tuesday, Novavax shares closed at $9.52, ending with a market capitalization of approximately $821 million. The company’s share price is down by more than 7% year-to-date.
In the first-quarter report, Novavax President and Chief Executive Officer John C. Jacobs touched on the company’s agenda, saying:
“Today, we outlined significant measures intended to reduce spending, extend our cash runway, and operate more efficiently. Combined with our focus on revenue generation from Nuvaxovid
and management of our current liabilities, these measures should strengthen our cash position and our potential for the long-term growth and stability of Novavax.”
Jacobs added that Novavax also made “significant progress on other key priorities”, including efforts to deliver updated Covid vaccines for the Fall season. Furthermore, the biotech platform’s chief executive also pointed out:
“We [recently] announced positive Phase 2 data that we believe supports the further development of our combination COVID-influenza, standalone influenza, and high-dose COVID vaccines.”
After 35 years of business, Novavax’s Covid antidote remains its only commercially available product.
In a media session, a Novavax spokesperson noted that its staff downsizing would affect nearly 400 full-time equivalent employees. The shakeups also involve strengthening the firm’s facilities and infrastructure. These measures may help Novavax become more profitable and likely see a potential stock surge.
Although Jacobs admitted that reducing the company’s workforce is a “difficult decision”, the CEO deemed the action necessary. He says downsizing helps Novavax better align its infrastructure and scale to “the endemic Covid opportunity”. In conclusion, Jacobs opined that the biotech firm is encouraged by the progress made in the last quarter to take on substantial challenges ahead. Furthermore, the Novavax chief executive added that the company remains determined to continue executing its top priorities.
Novavax Q1 2023 at a Glance
For the first quarter of 2023, Novavax realized total revenue of $81 million, which was way off the $704 million recorded in Q1 2022. The company ascribed the considerable gulf in earnings to an “emerging seasonal demand pattern for Covid vaccines”. Furthermore, Novavax explained that Q1 2023 product sales include a $65 million revenue reversal from doses delivered last year that are scheduled for future replacement.
Meanwhile, the first-quarter cost of sales for 2023 came in at $34 million versus $15 million in the first three months of 2022. However, the latest sales cost included $20 million for surplus, outdated, or expired inventory and firm purchase commitment losses.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
In its Q4 2022 report, Rivian explained that supply chain constraints continue to affect its production capacity.
Rivian Automotive Inc (NASDAQ: RIVN) recently posted its Q4 2022 earnings results, which showed mixed performances. The electric vehicle company’s revenue fell below expectations, although its adjusted loss per share fared better. Furthermore, Rivian’s production guidance for 2023 is almost twice last year’s amount but still short of the consensus estimate for the period.
Nonetheless, the EV company, which saw its shares slip 8% in extended trading, remains focused on ramping up the production of some vehicle categories.
The latest Rivian earnings result also comes amid challenging times for the EV maker. So far, Rivian has weathered slower-than-anticipated production and unexpected pricing pressure. In addition, the company plans to trim its headcount by 6% to conserve cash in a tight tech sector.
Rivian Q4 2022 by the Numbers
For the fourth quarter of last year, Rivian raked in a revenue haul of $663 million compared to the $742.4 million analysts expected. The California-based organization saw an adjusted loss per share of $1.73 versus the consensus estimate figure of $1.94.
Yesterday, Rivian stock eventually closed at $19.30 a share, representing a 4.6% upside from its initial extended trading dip. The EV firm also reported an adjusted loss before interest, depreciation, taxes and amortization of approximately $5.2 billion last year. This was narrower than the $5.4 billion guidance loss in November.
Rivian forecasted it would produce 50,000 cars in 2023 following the mixed Q4 2022 outing. Although this number roughly doubles last year’s output, it still falls significantly short of the 60,000 vehicle production analysts expected. In a letter to shareholders, the EV manufacturer identified supply chain constraints as the bane of its production capacity. As Rivian put it:
“Supply chain continues to be the main limiting factor of our production; during the quarter, we encountered multiple days of lost production due to supplier shortages. We expect supply chain challenges to persist into 2023 but with better predictability relative to what was experienced in 2022.”
Last quarter, Rivian produced 10,020 vehicles and delivered 8,054 against a fiscal year total delivery of 20,332 cars and 24,337 produced.
2023 Business Outlook
Rivian also revealed that it would prioritize ramping up the production of its R1 truck and SUV this year. The EV maker also plans to increase the production capacity of the electric van it builds for its largest shareholder, Amazon (NASDAQ: AMZN).
Other stated Rivian business plans for 2023 include driving costs down and delivering exceptional end-to-end customer experience. The company explained that even though inflation has crippled its supply chain, it will increase productivity while reducing material costs. Such cost-cutting measures entail trimming engineering and vehicle design, as well as other commercial cost-down efforts. In Rivian’s own words:
“We remain confident in our ability to continue to drive our cost per vehicle lower by ramping production and leveraging our fixed costs, as well as our commercial, engineering design changes, and operational cost down efforts.”
Rivian Downsizing
Early last month, Rivian announced its intent to lay off around 840 employees as part of its July restructuring plan. According to the EV manufacturer, its decision to downsize was also influenced by the ongoing price war in its industry.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.