Episode Transcript
[00:00:06] Welcome to the John Lothian News daily Update podcast for February 8, 2024. I am your host, John Lothian. This podcast is brought to you by John Lothian News, 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 Prometheum announced it will offer custody services for Ethereum Ether ETH token once live, ETH can be custodied at Prometheum Capital, which is subject to U. S. Federal securities laws, marking the first time ETH will be custodied at a FINRA member firm and an SEC registered broker dealer. Additionally, Prometheum's sign up process is now active for institutional clients, including asset management firms, hedge funds, registered investment advisors, Rias banks and other financial institutions. In anticipation of the platform's custodial services launch in the first quarter of 2024, thinking crypto interviewed Prometheum co CEO and co founder Aaron Kaplan in a podcast titled Prometheum's Ethereum Custody launch. Crypto strategy SEC and FINRa approvals with Aaron Kaplan Back filed amended form s three registration statements with the SEC to issue up to $150,000,000 of registered securities, aiming to raise capital for its long term vision. Back also needs to amend its third quarter 2023 ten Q to update its business risk, excluding new products or markets without a track record. Coindesk's take on this was a story titled Crypto firm Beck warns it might not be able to remain in business.
[00:02:09] The latest version of the game where's Waldo is where are the chinese bitcoin miners? Since China banned it in 2021, chinese bitcoin miners have been on the move. Their latest destination is Ethiopia, according to a Bloomberg story. Bloomberg reports that January marked the warmest on record, with temperatures nearly 1.7 degrees celsius above the preindustrial average, continuing a trend of record breaking temperatures for the 8th consecutive month, according to Europe's Earth observation agency Copernicus. Bloomberg said, quote, thermometer readings were well above the average of the past three decades in southern Europe, eastern Canada, northwestern Africa, the Middle east and Central Asia, unquote. Personally, I remember freezing my butt off in January in Chicago. JLN is continuing to convert its open out Cry Traders history project videos to audio podcasts, and the latest one is with Tom Gould. The story is titled Open Out Cry Traders History Project podcast. From trading floors to life's crossroads, Tom Gould's journey through trading and giving back Patrick Young's latest episode of IPO Vid featured Brad Schaefer whom Young described as a polygon commodities trader, maestro, musician and celebrated columnist extraordinaire. The title of the episode is from the floor to the future with Brad Schaefer, inspired by the latest CFTC advisory notice rewritten by little orphan Annie about AI won't turn trading bots into money machines, I asked chat, GBT and Cupid to rewrite the CFTC notice, CFTC customer advisory alerts app and social media users to financial romance fraud. The Cupid GBT version can be found with a link in today's newsletter. I really liked the conclusion of the piece and contact information.
[00:04:29] For more information on how to protect yourself from financial romance fraud, visit the CFTC's website or contact the OCEO directly. Together we can spread love, not scams this Valentine's Day. Contact Cupid care of commodity Futures Trading Commission phone 1800 Cupid Love Women enlisted derivatives are Wild is offering a Zoom event on February 20 titled show up Standout Breakthrough Part two a founder and CEO's authentic leadership journey with speaker Adessa Jenkins, the CEO of Bonfire and founder of the Women's National Football Conference. This is the follow up to Jenkins first session with Wild on January 9, which prompted so many questions it sparked the need for more time to learn about Jenkins advancements and even more time for Q and A. Registration is available with the link in today's newsletter. And for those that missed part one, there is a video available with a link in today's newsletter. The Eurex Derivatives Forum Frankfurt takes place February 20, eigth to 29 2024. This is a leading european event focused on trading and clearing for derivatives across asset classes. Participants can join the forum either in Frankfurt or by viewing selected slots on the Eurox virtual platform. Joining online is free. An ESG innovation Lab workshop will feature moderated roundtable discussions, including how to enrich your client relations by integrating sustainability topics, the linkage of positive contribution and products circular commodity exchange new asset classes on the Horizon Deutsche Force Network initiative. Learn more and register with the link in today's newsletter. Our most read stories from our previous edition of JLN options were get to know OCC's operational risk management and controls team from OCC traders boost bearish China options bets even as stocks surge from Bloomberg and the significance of Theta for options options 101 from Yahoo Finance, subscribe to the free JLN Options newsletter with a link in today's JLN. Here are more stories from the first reading section of today's JLN.
[00:07:09] Here's our podcast open out Cry Traders history project podcast from trading floors to life's crossroads Tom Gould's journey through trading and giving back in this podcast version of the open Outcry Traders history project video interview, Tom Gould reflects on his trading career and the life changing experience of a heart attack that led him to give back to the community. Gould's journey began unexpectedly when he took a summer job at the Chicago board options exchange and then, after a second summer, received a call from his boss with an offer to forego law school and join the Chicago board Options Exchange Cboe. His time on the trading floor had been eye opening, filled with excitement and learning opportunities, so he took the job. You can listen to this podcast on johnlothiannews.com. Here's a story from here's a piece from Caton SEC broadens dealer definition on February 6, 2024, the securities and Exchange Commission SEC adopted two new rules that expand who may be considered a dealer or a government securities dealer under the securities Exchange act of 1934, as amended Exchange act, and be required to register in such capacity. The new rules depart significantly from decades of established precedent, distinguishing between dealer activity necessitating registration and trader activity that does not. The SEC adopted new rules in a controversial three to two vote. As background, the Exchange act defines the term dealer as any person engaged in the business of buying and selling securities for such person's own account through a broker or otherwise. In addition, the Exchange act excludes from the dealer definition any person that buys or sells securities for such person's own account, either individually or in a fiduciary capacity, but not as a part of a regular business. The Exchange act also sets forth parallel language applicable to government securities dealers. My comment I know a lot of dealers who don't advertise their business is all word of mouth. It's a different commodity being sold. But here's a press release from CCP Global the Global association of Central Counterparties releases the quick Access transparency links QATL disclosures template to enhance accessibility to existing CCP disclosures, to enhance clearing participants'existing, access, and for ease of reference to CCP disclosures. Today, CCP Global officially announced the release of the QATL template. This document provides a series of links to CCP's rulebooks and disclosures in accordance with CCP Global's template format. The QATL template the information contained in this document will be compiled by the CCP for general informational purposes in order to enhance the accessibility of information from a CCP's documents. While some relevant CCP rules may be discussed, hyperlinked to, or referred to in the QATL template, all matters and information provided is subject to and superseded by the specific CCP's rules and disclosures. It is advised that the current versions of the CCP's rules and disclosures should always be consulted and are those that should be relied upon by the CCP's participants. My comment I think this QATL is a bunch of bull.
[00:11:36] Here's another story, this one from the Wall Street Journal. The headline sports gambling is a growing money laundering risk, US says cautionary note comes as Americans get ready to bet more than ever on the Super bowl. Online sports gambling poses an increasing risk of money laundering, the US Treasury Department said in a warning. That comes as a record number of Americans are expected to place bets on the coming Super bowl. The rapid growth of the sports betting sector and a lack of uniform regulations contribute to significant and increasing money laundering risks, the treasury said Wednesday as part of an expansive report on money laundering concerns. My comment what better time to launder some money in sports betting than the Super bowl week when billions of dollars are being bet?
[00:12:32] Here are the top three stories from Wednesday's JLN our most clicked item Wednesday was once again, Intercontinental Exchange reports January 2024 statistics from Intercontinental Exchange or ICe. Second was SEC increases oversight for hedge funds, high speed traders from the Wall Street Journal. And third was the John Lothia news video, Options Discovery, episode 29 understanding the foundations to become a successful options trader. Mark Esposito, options mentor at McMillan Analysis Corpse, discusses this and more with JLN's Esma Alice. Here are the top three stories from the lead section of today's JLN. First, an advisory from the CFTC CFTC Customer Advisory alerts app and social media users to financial romance fraud. The Commodity Futures Trading Commission's Office of Customer Education and today issued a customer advisory alerting dating messaging app and social media users to a scam asking for financial support or giving investment advice using the platforms just in time for Valentine's Day. The customer advisory six warning signs of online financial romance frauds reminds app and social media users to be wary of texts and messages from strangers that promote cryptocurrency investments. The text could actually be from international criminal organizations. These criminal organizations trick victims into investing money in cryptocurrency or foreign currency scams, only to defraud them. The scam can take advantage of even the savviest investors because fraudsters develop relationships with their victims through weeks of seemingly authentic text messaging conversations, a practice known as grooming. The financial grooming gangs refer to this fraud as Shah Zupan, or pig butchering. Here's another story, this one from CNN cybercriminals raked in record $1.1 billion in ransom payments in 2023 cybercriminals extorted a record $1.1 billion in ransom payments from victim organizations around the world last year, despite us government efforts to cut off their money flows, crypto tracking firm chain analysis said in a report released Wednesday. The surge in ransom payments, which nearly doubled the 567,000,000 by chain analysis in 2022, coincided with a major escalation in the frequency, scope and volume of attacks, the New York based firm said after the FBI announced an operation that thwarted $130,000,000 in ransom payments for several months in 2022. A variety of cybercriminal groups have struck us casinos, hospitals and schools in 2023 and have sometimes collected big payouts.
[00:15:51] Here's a story from Bloomberg. The headline a hedge fund manager's guide to handling GOP attacks on ESG. Man group CIO says talks with GOP clients look at financials ESG investing is under ongoing attack in republican states the best defense against republican attacks on ESG is to persuade naysayers that the investing strategy can actually help financial performance, according to the chief investment officer for responsible investment at Man Group, the world's largest publicly traded hedge fund doesn't screen for environmental, social or governance risks, quote, just to try to make the world a better place, unquote. Rob Furtick, Mann Group's CIO overseeing its ESG assets, said at a panel hosted by Bloomberg Intelligence in London on Thursday. Quote, we do it because we think it improves our investment process, unquote. Here's the story from the Wall Street Journal. The headline UBS Wells Fargo invest in Nasdaq backed market for pre ipo shares. More banks are backing Nasdaq private Market, a trading platform for shares in companies that haven't yet gone public. UBS Wells Fargo and PNB parabas are among the new investors in Nasdaq private market, the venture said as it announced the closing of a $62.4 million funding round. Trading giant DRW holdings also joined as an investor. Nasdaq spun out Nasdaq private Market into a separate company in 2021. The venture is hoping that Wall street banks can help steer deals into its marketplace. Existing investors include Goldman Sachs, Morgan Stanley and Citigroup. Here's another story, this one for Reuters. The headline tradestation to pay $3 million to settle charges from SEC states over unregistered crypto product cryptocurrency platform tradestation crypto will pay $3 million to settle charges from the US securities regulator and multiple states that it offered and sold unregistered securities through an interest earning program. TradeStation failed to register its crypto lending product. That allowed U. S. Investors to deposit or purchase assets on tradestation's platform in exchange for yield. The securities and Exchange Commission said the product was offered to customers beginning in 2020 and was shut down in 2022.
[00:18:38] 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 on which you access this podcast. Your reviews play a crucial role in introducing our content to new listeners. Also, if you haven't subscribed to the Daily John Lothian newsletter, email yet, you can enjoy a complimentary 90 day trial by visiting johnlothiannews.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.
