Episode Transcript
[00:00:06] Welcome to the John Lothian News Daily Update podcast for May 3, 2024. I'm your host, John Lothian. This podcast is brought to you by John Lothianws, the home of markets wiki and markets wiki Education. Thank you for joining us. Here are the hits and takes comments from today's Gln Josh King of Ice and NYSE has the heart warming story of 18 year old Luke Grettenberger of Michigan, who rang the NYSE's opening bell as a result of the Make a Wish organization.
[00:00:42] King wrote, Luke aspires to be a stock trader and we were happy to grant his wish. His goal is to be a specialized investor focused on companies seeking cures to sickle cell anemia, which he battles every day. He got a great start this morning thanks to make a wish.
[00:01:04] Along the way, he met with fellow Michigander and NYSE vice chair John Tuttle, with Scott Wapner, Jim Cramer, Carl Quintanilla, David Faber, Peter Tuchman and Judy Kwan Shaw.
[00:01:22] Jim Toes, STA president and CEO and former candidate for Congress in New York's third district, announced the termination of his campaign after the New York State Board of Elections invalidated his signature petitions for the June 25 republican primary. Toes expressed disappointment over the efforts of the Nassau County Republican Committee, or NCRC, and their chosen candidate, Mike Lupitri, to eliminate competition through technicalities and outdated petition forms. He criticized these actions for denying the New York third republican taxpayers a fair choice in selecting their representative, suggesting they undermined party unity and disenfranchised voters. Toes hinted at future involvement in public service, though his exact plans remain undecided. He closed by thanking his supporters, especially his wife Jeanine, for their support. Throughout the campaign, CBO Global Markets reported strong financial results results for the first quarter of 2024, with several key highlights reflecting robust performance. The company achieved a diluted EPs of $1.96, marking a 20% increase and an adjusted diluted EPs of $2.15, up 13%. Net revenue reached a record $502.1 million, a 7% rise from the previous year. CBO anticipates reaching the higher end of its organic total net revenue growth forecast of five to 7% for 2024 and reaffirms its growth target of seven to 10% for data and access solutions. Additionally, the company has adjusted its operating expense guidance for 2024 to $795 to $805 million, slightly lower than previous estimates. CEO Frederick Tomsick also mentioned plans to refocus the digital asset business to enhance derivatives technology and product innovation while improving operational efficiencies congratulations to everyone at IMC trading on reaching your 35th anniversary. From humble beginnings with just two traders on the Euronext floor in Amsterdam to becoming a global leader in the trading industry, your journey is truly inspiring. Your commitment to cutting edge low latency technology and exceptional execution capabilities has clearly set you apart. Here's to celebrating the past achievements and looking forward to many more years of innovation and success. Cheers to the entire IMC team for your dedication and hard work. Condolences to the family and friends of longtime futures industry broker Joseph Mazurek, who passed away on April 28, 2024 at the age of 67. Mazurik was retired and had worked for such firms as Straits Financial, Revco, UBS, RJL, Macquarie and MfGlobal. The FIA is hosting a webinar on Tuesday, May 7, 2024 to review the first quarter of 2024 trends in exchange traded derivatives, or ETD volumes. The session will focus on global listed derivatives markets, in particular examining equity derivatives in India, the US and Europe, interest rate futures and options in the US and Europe, and shifts in the global commodity futures and options markets.
[00:05:41] Guest speakers Davish Debal and Giovanni Martelli from UBS will provide insights into algorithmic electronic trading and ETD voice execution. The webinar is hosted by Will Ackworth, senior vice president of publications, data and research at FIA. The CME Group has a promotional video on YouTube titled a new Way to manage corporate bond risk that highlights the inherent challenges and risks associated with the corporate bond market, such as interest rate fluctuations and credit risks, including defaults. The video introduces new tools and mechanisms that are now available for investors to better manage and mitigate these risks. The development offers a more robust framework for navigating what has traditionally been a complex and risky investment area. The CME corporate bond Futures launch on June 17. The Johannesburg Stock Exchange, or JSE, today celebrated the career of Harry Sidani, their security officer for the last 40 years, with a special market opening ceremony. JSC said Harry's long standing dedication and loyalty left a lasting impact on the JSC community, marking his retirement as a significant moment for the organization.
[00:07:14] The Dubai financial market, or DFM, and six, the swiss financial market infrastructure group signed a collaboration agreement during the capital Market summit 24, attended by executives including born seburn of six and Hamad Ali and Afra al Suwadi of DFM. This partnership aims to facilitate mutual growth and innovation in the global financial markets by simplifying share transfer processes between exchanges, easing cross listings, enhancing share fungibility, and sharing best practices and market data.
[00:07:56] CBO Global Markets reported significant achievements in their 2023 annual report highlighting record options, trading volume and successful technological migrations in Australia and Japan. The company also introduced a unique listings offering aimed at helping corporates and ETF's access global capital markets alongside continuous innovations and client driven products. Exemplified by the launch of DSPX in 2024, Cibo aims to enhance the interconnectedness of its markets globally, assist more individuals worldwide in achieving their financial goals, expand the accessibility of market data and related tools, and increase trading activity to generate more data. The Financial Times has an interesting visual story titled how Ukraine broke Russia's grip in the Black Sea with a sub headline. Attacks on Moscow's warships have helped to establish an export corridor that could boost Kiev's war effort.
[00:09:06] Gabriela Cuse is starting a new position as chief operating officer at TCS, she reported on LinkedIn. She previously served as the CEO of the global Digital Asset and Cryptocurrency Association. FIA Tech is looking for a trade reconciliation engineer in New York for a hybrid full time position.
[00:09:32] Today is World Press Freedom Day, a UN declared global celebration of the freedom to seek, impart and receive information for the public good. The 2024 focus is a press for the planet journalism in the face of the environmental crisis.
[00:09:53] Watch the UNESCO conference live broadcast from Chile with a link in Todays newsletter. View a gallery of cartoons developed by cartooning for Peace with a link in Todays newsletter, or follow the participant statements on social media at Hash hashtag WPfD or WPFD 2024.
[00:10:20] Our most read stories from our previous edition of JLN options were OCC April 2024 monthly volume data from OCC Nasdaq plans more short term options on commodity Treasury ETF's from Bloomberg and from OIC buy side perspective on options from Traders magazine subscribe to the free JLN Options newsletter with a link in today's JLN.
[00:10:50] Here are more stories from the first read section of today's JLN. Here's a story from MarketWatch. The headline IR's says audits for rich people and corporations are about to hit a whole new level. Buckle up. The Internal Revenue Service is getting specific about how many more audits it wants to spring on rich taxpayers and businesses as the tax collector absorbs billions of dollars in funding in order to toughen tax compliance at the top. By the time people file their 2026 taxes, the IR's wants a 50% jump in the audit rate for households with incomes of $10 million and up, the agency said in a report Thursday. It's also seeking to nearly triple the rate of corporate audits. Though the latest financial audit numbers were already starting to show slight increases in audit rates for wealthy households, the newly announced goals would be a sharp move higher. My comment are we talking about Ken Griffin Rich or John Lothian Rich, rich in money or rich in other things? Here's another story, this one from the Wall Street Journal online marketplaces like eBay, Etsy are counting on AI to supercharge shopping. Technology has the potential to help both buyers and sellers. Shopping on online marketplaces such as eBay and Etsy, or even second hand clothing seller thread up can feel like treasure hunting at a giant flea market, except even more daunting as there are millions of unique listings to sort through. So it is no wonder that online marketplaces are eager to add artificial intelligence functionality to their search bars. The technology has the potential to behave like a chat GBT version of a personal shopper acting on sentence commands to come up with relevant results and digging up products the consumer might not even have known existed on the platform. Mike Hammitt now I am being chased by AI on my shopping sites. Great.
[00:13:05] Here are the top three stories from Thursdays JLN our top story Thursday was Bloomberg's the state of crypto is anything but strong. Second was Intercontinental Exchange reports strong first quarter 2024 and ICe press release. Third was the CME press release. CME Group reports record April Adv of 26.5 million contracts with double digit growth across all at said classes. Here are the top three stories from the lead section of todays JLN. The first story is from Bloomberg. The headline Wall street seizes opportunity to gut SEC trading surveillance consolidated audit trial captures almost all us trading data Citadel securities is suing to halt orwellian SEC database after 14 years of debate, the securities and Exchange Commission is in the final stages of bringing a powerful new surveillance tool fully online. But Wall street is seizing on the ideal political environment for a last ditch attempt to kill it. The consolidated audit trail is a database, one of the largest ever created, that is set to revolutionize how the agency monitors trading activity and spots potential misconduct. By its May 31 industry compliance deadline, it will collect almost all us trading data, as many as 500 billion records a day, and give the SEC a live window into activity across markets. Here's another story, this one from the Financial Times. The headline society general defends risk controls after unauthorized trading incident french bank reports smaller than expected drop in profit after strong performance in equities trading society general has played down an incident involving unauthorized derivatives trading in Hong Kong last year, saying its risk controls had worked as the french bank posted a smaller than expected profit drop thanks to a strong equities trading performance in the first quarter.
[00:15:28] Slough Amir Krupa, Sakjen's former investment banking head, who was appointed chief executive nearly a year ago, on Friday, said the unauthorized trading in Hong Kong was ultimately detected by risk control systems and had caused no losses.
[00:15:45] Here's another story, this one from the Financial Times. The headline Mike Ashley's Fraziers drops 50 million euro lawsuit against Morgan Stanley retailer had accused Wall street bank of quote unquote snobbery over $1 billion margin call Mike Ashley's Frazier's group has dropped its 50 million euro lawsuit against Morgan Stanley ahead of a judgment in the London case that saw the british retail tycoon accuse the Wall street bank of snobbery. Fraziers withdrew the lawsuit in recent days with no money exchanged by the parties, according to a spokesman from Morgan Stanley. The about turn from Frazier's comes after a trial that concluded in March.
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