[00:00:06] Speaker A: Welcome to the John Lothian News Daily.
[00:00:07] Speaker B: Update Podcast for December 15, 2023. I am your host, John Lothian. In this podcast, we provide an overview of the content featured in today's John Lothian newsletter. We'll cover insights from the Hits and Takes section, share stories from the first Read section, highlight the top three stories from the previous editions of both JLN and JLN options, and delve into the first three stories featured in the Lead section of today's JLN. This podcast is brought to you by John Lothian News, the proud home of Markets Wiki and Markets Wiki Education. We invite you to explore our extensive collection of trading history videos on the Marketswiki Education
[email protected]. This includes the Open Outcry Traders History Project and the Path to Electronic Trading video series. Thank you for joining us. Here are the hits and takes comments from today's JLN Hong Kong Exchanges and Clearing Limited CEO Nicholas Aguzen will depart at the end of his contract, succeeded by Coco Bonnie Chan, who will be the first woman in the role. The leadership change comes amid a prolonged IPO slowdown at the exchange. Chan, 54, previously headed the listing division and was promoted to Coco earlier this year. She will assume the CEO position in May. Bloomberg, the Financial Times, the Wall Street Journal and the trade have the story. And there is a press release from Hong Kong Exchanges and clearing. The Fiapta has released a report titled Exchange Traded Derivatives Strengthening the Backbone of Sustainable Capital Markets, emphasizing how exchange traded derivatives ETD can play a vital role in advancing green and sustainable capital markets. While the EU's Sustainable Finance Disclosure Regulation, the SFDR aims to promote environmentally and socially responsible investments, ETDs have been overlooked for their significant contribution to this transition. ETDs form a crucial part of the overall market infrastructure, fostering trust and participation in financial markets. They offer a means to mitigate risks, including those associated with climate related events such as extreme weather conditions.
[00:02:38] Speaker A: The paper calls for a more inclusive.
[00:02:41] Speaker B: Approach within SFDR that recognizes the unique value ETDs bring to capital markets, potentially expediting the shift towards a more environmentally and socially responsible financial landscape. Today is a triple witching day, the Wall Street Journal reports. The term refers to the simultaneous expiration of derivatives contracts linked to index options, index futures and single stock options, providing investors with opportunities to leverage their trades or manage risks. Triple. Witching occurs quarterly on the third Friday of March, June, September and December. Back when we had single stock futures in the US. It was a quadruple witching day.
Intercontinental Exchange, Inc. Ice announced a new record in open interest with 86 million contracts on December 13, 2023, surpassing the previous record set in June 2021. This includes record open interest in commodity energy and natural gas futures and options markets, marking a 21% year over year increase in open interest across segments.
This one is a little embarrassing. The former chief operating officer of now defunct payment processing giant Wirecard, which imploded in a financial fraud, may have been a Russian operative who funded covert operations around the world for Moscow, the Wall Street Journal reported. Jan Marcelek may have been a Russian agent for a decade, the Journal reported. Exchange analytics has introduced a completely revamped catalog of regulatory compliance courses. This updated catalog features significant revisions and enhancements to courses covering initial futures, ethics, cybersecurity and customer protection rules. You can see the course catalog with a link in today's newsletter. The Internal Revenue Service unveiled the optional standard mileage rates for 2024, which are employed to compute the deductible expenses associated with operating a vehicle for business, charitable, medical or moving purposes. Starting on January 1, 2024, the standard mileage rates for car usage, including vans, pickups or panel trucks, will be as follows Sixty seven cents per mile for business use, marking a 1.5 cent increase for 2023, The Guardian reports. Early risers owe a nod to their neanderthal genes, say scientists. DNA passed down from our prehistoric cousins appears to boost the morning person trait. It's a genetic gift from our thick browed relatives, making some folks naturally inclined to wake up and sleep early, study suggests. So if you're an ancient genetic morning warrior, thank your neanderth genes for that. We have a correction from yesterday and.
[00:05:53] Speaker A: It is all my fault.
[00:05:54] Speaker B: The write up for the video interview from FIA Asia with two CQG executives. I identified one of them as John Co and the other is Pat Kenny. John Co was originally identified as our interview subject, and when I wrote up the summary of the video, it was his name I used. I did not catch that Ben Song was interviewed instead. My apologies for the mix up. It has been corrected on the video and the write up. Additionally, in the video, we misspelled Ben Song's name. We dropped the G that has been fixed. Mia Kanetet, the International Capital Markets Association and the International Regulatory Strategy Group IRSG have published a new, globally consistent voluntary code of conduct for ratings and data products providers in the environmental, social and governance space. ESG. The UK's Financial Conduct Authority. FCA asked the ICMA and the IRSG to create the code. The organizations convened an industry group to develop a globally consistent voluntary code for those providing the third party data and ratings that are increasingly used by the market. The code is aligned with IASCO's recommendations and focuses on promoting transparency, good governance, management of conflicts of interest, and strengthening systems and controls in the sector.
The code is intended to be internationally interoperable and could be used by jurisdictions where no local code or regulation is in place. View the code on the ICMA group website. Our most read stories from our previous edition of Gln options were fields of honor from fields of honor, Asia Pacific ETF industry is taking off, says Investco executive from the Financial Times and CFTC wrestles with new clearinghouse models from FIA. Subscribe to the free JLN Options newsletter with a link in today's JLN.
Here's more stories from the first Read section of today's JLN. Here's a press release from FIA Tech. FIA Tech and Urex Form strategic Data Partnership for Foreign Security Futures. FIA Tech, a leading futures industry technology provider, today announced that it has formed a strategic data partnership with Global Derivatives Exchange Urex. Urex will begin using FIA Tech's Foreign Security Futures FSF data service to evaluate FSF eligibilities effective the 31 December 2023 and Eurex will join the Data bank network. My Comment JLN missed catching up with FIA Tech in Asia, but will do so soon.
[00:09:01] Speaker A: The next story is from the Financial Times. The headline a Quant's winter Tale across the multi factor quantiverse with AQR by Robin Wigglesworth. Clifford Asnis's office is an OD mix of finance. Old timer and teenage bedroom books about Churchill stand alongside DC Comics encyclopedias. The sea of family photos is dotted with islands of vintage Marvel memorabilia, and next to his computer, a job of Pepsid sits next to a jumbo bottle of Sriracha. My comment, cliff, asneth PR team is busy. Here's another story from the Financial Times, also from Robin Wigglesworth. The headline Markets are becoming less efficient, not more, says AQR's. Clifford Asnis. Eugene Fama's protege warns a mass of superfluous data is confusing many investors.
The mounting deluge of mostly irrelevant information is overwhelming many investors, making financial markets more chaotic and less efficient at pricing in important data, says hedge fund magnet Clifford Asnis, the founder of US based AQR Capital Management, still one of the world's biggest computer driven investment firms despite a sharp drop in assets in recent years. Once studied under the University of Chicago's Eugene Fama, who won a Nobel Prize for his efficient markets hypothesis. My comment Cliff Asnes'pr team is very busy. Here's another story from Bloomberg. The headline El Nino nears historic intensity with threat of weather havoc El Nino is threatening to become one of the most intense events of its type in history as the weather pattern approaches its peak strength in the coming weeks. The phenomenon is driven by warming waters across the equatorial Pacific, and the ODS of rising ocean temperatures have gone up, amplifying El Nino's influence over global weather patterns. There's now a 54% chance water temperatures will reach two degrees Celsius. That's 3.6 degrees Fahrenheit above normal above the key region, according to the US. Climate Prediction Center. Those ODS were calculated at 35% just a month ago. My comment they had me at historic intensity. Here are the top three stories from Thursday's. JLN Our most read story on Thursday was the New York Times story New SEC cyber rules are about to go in effect. Some expect bumps. Second was from Bloomberg. CVS is among healthcare companies adopting biden's AI safeguards. Third was the SEC story. Third was an SEC press release credit Swiss entities to pay $10 million for providing prohibited mutual fund services. Here are the top three stories from.
[00:12:28] Speaker B: The lead section of today's JLN.
[00:12:31] Speaker A: The first story is from the Financial Times. The headline hong Kong Stock Exchange chief Nicholas Aguzen to step down.
[00:12:38] Speaker B: Former JP.
[00:12:39] Speaker A: Morgan banker has led Hong Kong Exchange at a time when it has struggled to maintain its status as global listings destination. Nicholas Aguzen is to leave his role as chief executive of Hong Kong stock market operator Hong Kong Exchange at the end of a three year term, during which the exchange has struggled to maintain its status as an important global destination for listings. Aguzen, a former J. P. Morgan banker known as Gucco, has informed the board that he will not seek reemployment at.
[00:13:13] Speaker B: The end of his current contract in May 2024, Hong Kong Exchange said in a statement on Friday.
[00:13:20] Speaker A: Here's another story, this one from the Financial Times. The headline AI presents growing risk to financial markets, u. S. Regulator warns Financial Stability Oversight Council flags emerging technology as a vulnerability for the first time in latest report, the growing use of artificial intelligence has become a significant risk to stocks, bonds and financial markets in general, according to a new report from the chief U. S. Financial stability regulator. It is the first time that AI.
[00:13:53] Speaker B: Was identified as a vulnerability by the.
[00:13:56] Speaker A: Financial Stability Oversight Council in its annual report, treasury Secretary Janet Yellen, who also chairs the FSOC, on Thursday predicted at a meeting of the council that the use of AI by banks, investors and other financial market players is likely to continue to increase. And then finally, here's a story from Bloomberg. The headline Hacker hits one of crypto industry's biggest names in security Ledger is one of the largest makers of digital wallets. The hack saw hundreds of thousands of dollars stolen the latest crypto hack involved one of the industry's top names in security hardware wallet maker Ledger. The Paris based startup saw its Ledger connect kit software compromised, leading to hundreds of thousands of dollars being drained from users'wallets early Thursday.
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