Episode Transcript
[00:00:06] Welcome to the John Lothian News daily Update podcast for August 8, 2024. I am your host, John Lothian. This podcast is brought to you by John Lothian News, the home of Marketswickie and Marketswicky Education.
[00:00:20] Thank you for joining us. Here are the hits and takes comments from today's JLN. We missed this from back on July 11, but amid the NATO press conference and the Ukraine compact launch, President Joe Biden slipped some nominations out at the White House. That included one for Julie Brin Siegel to replace Christie Goldsmith Romero as a CFTC commissioner.
[00:00:50] Denton's, which bills itself as the world's largest global law firm, has hired former acting CFTC chairman Mark Wechen as a partner.
[00:01:02] Our recently updated pages on Marketswicky include Affinity Fraud, bank Secrecy act, binary options fraud Edward T. Tilley, Eric Cott, fraud Recovery scams, gestation repo hack to trade scheme, high yield investment programs, Hyip fraud impersonation schemes, fraud, Interactive Brokers Group LLC Internet and social media fraud in financial markets John H. Stassen Julie Brin Siegel, Luke Fortin major swap participants Mark P. Wechin, Martin Franchi MF Global Holdings Limited, Montreal Exchange Inc. National Futures Association Nicholas Agozin, Nicholas Bretau, Ninja Trader Group LLC Philip McBride Johnson, Prime bank scams, registered Futures Association Robert Swoc, Ryan Moroney, Rugpol Stephane bushnehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehe swap dealers Vladislav Kyushin and wire fraud of the pages. New pages include Julie Brin Siegel, prime bank scams, Internet and social media fraud in financial markets, registered Futures association impersonation schemes, fraud, bank Secrecy act, wired fraud, binary options fraud and hack to trade scheme Robert Swach and Vladislav Kyushin Today's top story in the lead section is Wall street engineers unveil complex new options trade and has a sub headline CBO to launch options on VIX futures amid surging derivatives demand. We mentioned this yesterday here in hits and takes. The story says Civo Global Markets Inc. Plans to launch a new options product tied to futures for the CBO VIX volatility index, or VIX, on October 14, pending regulatory approval. This product allows the trading of options on VIX futures, aiming to provide new ways for investors to hedge market volatility. Unlike the existing cash settled VIX options, these will be physically settled and traded in futures accounts, thus accessible to more investors. The move is part of cbos response to increasing demand for innovative derivatives. However, according to Bloomberg, some experts believe the complexity of the new product may limit its appeal. Bloomberg is right. First off, futures are not for everyone securities trading is not for everyone. Complex trading of indexes like the VIX just makes it a more selective group of sophisticated, mathematically gifted traders. In securities trading, there is the suitability rule. And in futures trading there is a know your customer rule, both of which could limit who can trade securities or particular securities and who can trade futures. Are you going through a midlife crisis? And you always wanted to Ford Mustang? Or maybe one of the new sporty Ford Broncos. But what you really need is something that is more affordable, efficient, and easier to use to get around town. And maybe you want to get some exercise, too. Well, according to a New York Post story, Ford has come out with e bike versions of the Mustang and Bronco. The Bronco starts at $4,500 and the Mustang at $4,000.
[00:05:01] Our most read stories from our previous edition of GLN options were Cboe announces planned launch of options on VIX Futures for their expanding volatility product suite from CBO, and the second one was agricultural futures navigating the fields. Futures Discovery episode twelve from John Lothian News and the third trader Spurn Zero day options in this week's market tumble from Reuters. Subscribe to the free JLN Options newsletter with a link in today's JLN. Here are more stories from the first read section of today's JLN. Here's a commentary I unrealized the futures industries missed opportunity for FDIC like protection in 1973 how the original CFTC proposals plan for insured customer accounts was replaced with self regulation and led to the creation of the National Futures association.
[00:06:07] Did you know the futures industry almost had insured customer accounts akin to the Federal Deposit Insurance Corporation and banking? When the CFTC was first proposed in 1973, I ran across this fact while working on markets wiki the Commodity Futures Trading Commission act of 1974 was a landmark piece of legislation that fundamentally reshaped the regulation of the us futures markets. One of the most intriguing aspects of the original proposal was title three, which aimed to establish a federal commodity Account Insurance Corporation FDCAIC. This entity would have functioned similarly to the federal deposit insurance corporation providing insurance for customer accounts in the futures industry. However, this proposal never came to fruition. To read this story, go to johnlothianews.com.
[00:07:11] here's a story from the Wall Street Journal. The headline why everyone needs a digital death cleaning plan. Nobody wants to leave heirs a confusing collection of files they can't open, accounts they can't access, and assets they can't locate. I come from a long line of pack rats. When I went through my grandmother's home after she died in 1986, I found some priceless mementos she had stashed away. But I also found that if you insist on keeping every one of those lovely shopping bags you got from Bloomingdale's, you reach the end of your life without a closet that is nothing but shopping bags. Pack rats like us are the fodder for swedish death cleaning, a decluttering trend based on the idea of thinning your material possessions in life so you don't burden your survivors in death. But many people now burden their survivors with non material possessions too, in the form of countless digital files and online accounts, especially those who believe in archiving every email and file. My dont make your errors have to cut off your index finger or thumb in order to access your files and accounts on your computer after you die. Have a plan?
[00:08:31] Heres another story, this one from Bloomberg, the headline all about Telegram and why it became a go to app for for troublemakers. Whether its spreading conspiracy theories or organizing riots, messaging app Telegram has become a focus of extremist activity online. The service, started in 2013, is one of the most downloaded apps worldwide. Its private chat setting has made telegram a free space for open discussion in countries with authoritarian regimes. But a relatively light touch approach to content moderation means it's now a prime target for governments trying to stop the spread of misinformation that can destabilize societies. Telegram was used to foment and coordinate anti immigrant riots in the UK in early August. Prime Minister Cair Stammer responded with a pledge to crack down on social media platforms that helped to inflame the unrest.
[00:09:35] My comment back in the 1990s, I started using ICQ as an instant messenger. It was created by an israeli software company, then sold to AOL. It was eventually sold to mail Ru and was a popular mobile app for Russians. In May of 2024, it was announced ICQ would shut down, which it did on June 26, 2024. Here are the top three stories from Wednesdays JLN our top click story on Wednesday was how russian hackers stole millions from us investors, Putin's Trader, a documentary video from CNBC. Second was Japan's $1.1 trillion stock meltdown rewrote the record books from Bloomberg. Third was a tie between why you should sell shares in your company immediately, an opinion piece from the Financial Times, and pakistani national with ties to Iran charged in connection with a foiled assassination plot potentially targeting Trump. From CNN here are the top three stories from the lead section of todays JlN. The first story is from Bloomberg. The headline mentioned earlier Wall street engineers invent a new head spinning options trade. CBO says it plans to launch options on VIX futures in October. Product is latest bid to tap surging demand for derivatives financial wizards have conjured up possibly their most dizzying product yet in the quest to ride the derivatives boom. CibO Global Markets Inc. Is poised to offer options on futures for an index based on options of another index. The Chicago based firm plans to issue options tied to futures for the Cibo Volatility index, the famous fear gauge, otherwise known as the VIX. That gauge is itself built using options that track the S and P 500. The new contract, scheduled to list on October 14 pending regulatory review, scheduled to list on October 14, are the latest in a flurry of products unleashed by CBO amid a record surge in trading volumes across the derivatives complex. Here's another story, this one from the Financial Times. The headline funds offering protection from volatility failed to deliver in sell off covered call ETF's were supposed to be a Goldilocks investment, but are not immune from sharp downturns.
[00:12:15] Investors who pumped tens of billions of dollars into funds offering insulation from volatility suffered sharp losses during this week's stock sell off, highlighting the perils for retail traders seeking easy ways to ride out market uncertainty. Covered Call ETF's have boomed in popularity in recent years, with assets under management growing from about 18 billion in early 2022 to roughly 80 billion as of July, according to Morningstar data. Covered call strategies involve buying a basket of stocks while selling income generating derivatives tied to the underlying assets.
[00:12:57] Here's another story, this one from Coindesk. Judge fines $125 million, bans future security law violations in long running SeC case a federal judge ordered ripple to pay $125 million in civil penalties and imposed anhe injunction against future security law violations. On Wednesday, District Judge Annalisa Torres of the Southern District of New York imposed the fine after finding that 1278 institutional sale transactions by ripple violated securities laws leading to the fine. The $125.035 million fine is well below the 1 billion in disgorgement and prejudgment interest and 900 million in civil penalties the SEC sought. We're grateful for your attentive listening to the John Lothian news daily update. Please spread the word about our podcast among your friends. We would greatly appreciate it if you could spare a moment to leave a review on Apple Podcasts or whatever platform upon which you access this podcast. Your reviews play a crucial role in introducing our content to new listeners. Also, if you havent subscribed to the Daily John Lothian newsletter Email yet you can enjoy a complimentary 90 day trial by visiting johnlothianews.com trial. Thank you for your valued support. Have a great day and stay safe and treat people the same way you want to be treated, with respect, equality and justice. This has been. John Lothian Goodbye. This podcast has been produced by Andrew Lothian.
