Episode Transcript
[00:00:06] Welcome to the John Lothian News daily Update podcast for May 30, 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 JLN Today we have part one of a three part video interview with former CQG president Joseph Schroeder. I am a longtime CQG user and it was interesting to hear firsthand the history of the company from the change agent who was hired in 2000 to help it transition to the era of electronic trading. You can see part one of the Schroeder interview from the JLN video series, the path to electronic trading, with a link in today's newsletter. We also have an interview from the options conference and one from FIA Boca Today from the Options conference in Asheville, North Carolina, we have an interview with IG North America's JJ Kinahan from FIA's international and Futures industry conference in Boca Raton, Florida. We have an interview with Catton attorneys Lance Zinman and Dan Davis.
[00:01:25] The FIA forum, commodities 2024 will take place in Houston, Texas from September 16 to 18th, focusing on market trends and issues in energy and commodities derivatives markets. The event offers a multi track program for traders, risk managers, compliance and legal personnel covering topics such as oil gas power market drivers, hedging strategies, carbon and renewable opportunities, and battery metals. Legal and compliance sessions will address CFTC enforcement trends, trade surveillance, sanctions, compliance and commodity financing issues. The forum begins with an opening reception sponsored by Nodale Exchange. Attendees are encouraged to explore sponsorship and exhibit opportunities by contacting Tony Vitaly Chan, vice president of business development, at 1312 636-2919 register early to secure your spot at this rapidly growing event.
[00:02:35] The European securities and Market Authority, or ESMA, today issued guidance for firms using artificial intelligence, or AI, in providing investment services to retail clients, emphasizing compliance with MiFID, two requirements regarding organizational aspects, conduct of business, and acting in clients best interests. While AI offers potential benefits, it also presents risks such as algorithmic biases, data quality issues, opaque decision making, over reliance on AI, and privacy and security concerns. AI applications in investment firms include customer support, fraud detection, risk management, compliance and investment advice. ESMA and national competent authorities will continue monitoring AI use in investment services and the EU legal framework to determine if further action is necessary. CFTC Chairman Rostam Benham will deliver a keynote address at the Piper Sandler Global Exchange and Trading Conference 2024. The event is scheduled for Wednesday, June 5, 2024 at 12:30 p.m. eastern time. Taking place at the Lotto New York Palace Hotel, Holmes Ballroom, fourth floor, located at 455 Madison Avenue, New York, New York 10022. Today's Financial Times special report explores the growing field of impact investing, exploring how it differs from traditional ESG, environmental, social and governance funds. The report includes a comparative analysis of the effectiveness of direct enterprise investments versus risk focused ESG funds. It highlights a us platform aiding former prison inmates through impact investing, providing crucial support for their reintegration. The report also examines the efforts of Indias venture capitalists to demonstrate the tangible impacts of their investments in climate, tech, microfinance and agri food sectors. Additionally, it addresses the decline in sustainability linked bonds due to credibility issues, contrasting it with the robust green bond market. Another focus is the burgeoning interest in blue bonds aimed at marine and water related projects, which are gaining momentum. Finally, the report advocates for foundations to utilize their entire financial resources, not just grants, to maximize charitable impact.
[00:05:45] JLN is looking for subject matter experts on two subjects to be guests on our futures Discovery video series hosted by Cortes Draper. The subjects are reading your statement and block trading in futures. Cortes will be wrapping up shooting his 26 episodes by the end of June, so we hope to get these done soon. Cortes has given us a recommendation for a new host to follow in his footsteps, but we welcome other recommendations too.
[00:06:17] Our most read stories from our previous edition of JLN options were lightning strikes, options boom threatens data overload from waters technology NYSE plans bitcoin options bringing another tradefi giant into crypto from Coindesk and after twenty four s and P five hundred record options records options traders running low on FOMO from Bloomberg 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 the video from the OIC conference. JJ Kinahan of IG North America discusses options trading and regulatory changes JJ Kinahan, CEO at IG North America, shared his insights on the current state of options trading and regulatory changes in the industry during an interview at the Options industry conference with John Lothianus. The interview is part of the JLN Industry Leader video series sponsored by the OCC.
[00:07:30] You can watch this video on johnlothianews.com dot. Then our second video is from the FIA Boca conference cryptocurrency and regulatory landscape insights from CAT and attorneys from Boca Raton, Florida. In a recent interview at the FIAS International Futures Industry Conference, Cat and attorneys Lance Zinman. And Dan Davis shared their perspectives on the evolving landscape of cryptocurrency and regulatory changes in the financial industry. The future of trading firms may involve more consolidation and a greater number registering as broker dealers, the two cat and attorneys said. Watch this video on johnlothianews.com. then here's the Joe Schroeder video. The headline Joe Schroeder on transforming CQG for the digital age from humble beginnings to market leader, Joe Schroeder is a change agent, and that is exactly why CQG owner Tim Mather hired him in 2000. As the markets were turning electronic and CQG needed to reinvent itself.
[00:08:48] Watch this video on johnlothiannews.com. heres a story from Bloomberg Business Week the headline the people in Finance to watch in 2024 get to know the investors, money managers, executives and strategists who are shaping the future of finance.
[00:09:07] We looked across the industry to find both established players and yet to be household names in banking, private equity and asset management. Among those making an impact are a CEO, Tim Spencer, 5th, 3rd Bancorp, a CFO Amrita Anuja at block and hedge fund founders Amala Gayankar at Sergio cap and Nick Laster at Lycos. Whichever turn markets take in the second half, these leaders will be the ones to watch.
[00:09:45] My comment the person I am watching in finance in 2024 is named Hal.
[00:09:53] Heres another story, this one from the Financial Times the headline gold bars and five dollar chickens make Costco an inflation wave winner. Shares of the discount club soar as price weary shoppers peruse towers of chlorine and macaroons for bargains. The no frills retailer Costco wholesale has emerged as one of the big winners of the us inflation wave, drawing in millions of consumers willing to pay at least $60 a year to gain access to member only warehouses stocked with bargain priced produce, paper towels, appliances and five dollar rotisserie chickens. The us based company shares have more than trebled in the past five years, rising at a pace that rivals some tech giants to give it a market capitalization of $358 billion. My comment there is no inflation in the Costco hot dogs. However, the gold and boss wrapped ones are a different story. Here are the top three stories from Wednesdays JLN our top story Wednesday was Chicago to offer most generous subsidies in US to save its downtown from the Wall Street Journal. Second was the women enlisted derivatives or wild page for take wild to Work Tour CME Group, an event taking place on June 13. 3rd was the video interview from 2020 of Jeff Carter for JLN's Open Outcry Traders history project. Here are the top three stories from the lead section of today's JLN. The first story is from the trade and Jonathan Watkins the headline minor system issue hits DTCC's night cycle processing on first day of t one affirmation rates top 90% teething issues as anticipated on first day of t one implementation in US. While affirmation rates topped the DTCCs target on day one, DTCC experienced system issues within its DTC and NSCC night cycle processing on the first day of t one global custodian has learnt the issue was described by sources as having minor impact and is in line with expected teething issues anticipated by the us market infrastructure. DTCC has issued a notice to market participants that a system issue had occurred, but according to sources at a number of custodians transactions were still processed in accordance with DTCC deadlines for settlement.
[00:12:54] Here's another story, this one from the New York Times. The headline can billions in new subsidies keep family farms in business? The Biden administration aims to better support small farmers while still aiding big operations and rewarding climate friendly practices. It's a tall order.
[00:13:16] Agriculture Secretary Tom Vilsek has a line about the state of small scale agriculture in America these days. It's drawn from the National Agricultural Statistics Service, which shows that as the average size of farms has risen, the nation had lost 544,000 of them since 1981. That's every farm today that exists in North Dakota and South Dakota. Added to those in Wisconsin and Minnesota added to those in Nebraska and Colorado added to those in Oklahoma and Missouri, Mister Vilsack told a conference in Washington this spring. Are we as a country okay with it?
[00:14:05] Here's another story, this one from Bloomberg.
[00:14:08] Buried fortune of old copper wire is worth billions to telcos companies are working to recover at least $7 billion of copper. It's an enormous commercial opportunity, TxO's Evans says.
[00:14:25] At and T Inc. BT Group plc, Orange SA and their global peers are preparing to tap a rich new source of revenue. Their old copper wiring in the migration to fiber optic cable telecommunications companies could recover as much as 800,000 metric tons of copper over the next decade, worth more than $7 billion at today's prices, according to estimates from TXO, a UK based firm that provides engineering services to the industry. Weve got all of this material sitting redundant, said David Evans, who runs asset recovery at TXO. The firm is working with BT, and Evans says discussions are underway with more than a dozen telcos worldwide about copper recovery. Its an enormous commercial opportunity.
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[00:16:00] 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.
