Episode Transcript
[00:00:06] Welcome to the John Lothian News daily Update podcast for September 19, 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 honoring legacy A. Stamford White and the enduring impact on Chicago Scouting last week, I shared the story of Julian S. Rumsey, a founder of the Chicago Board of Trade, former mayor of Chicago, and co founder of the Lake Geneva Yacht Club, and how those institutions and the city were built in part by his leadership. In another week, another institution with deep ties to a former president of the Chicago Board of Trade who helped found it, will be holding its 52nd annual fundraiser at series. That organization is the Boy Scouts and the former CBOT president is a Stamford White. On September 25, pathway to Adventure councils LaSalle street racing to move scouting forward event will be held at series starting at 05:00 p.m.
[00:01:19] white was a two time president of the CBOT, serving in 1910 and again in 1918. In 1910, he helped found the Boy Scouts of America, and on June 15, 1916, White was listed among the founders on the congressional charter for the Boy Scouts of America. In fact, White was the first president of the Chicago Council of the Boy Scouts of America, a predecessor of the pathway to adventure council that the LaSalle street fundraising event supports. Before he was involved in scouting, White was the president of the YMCA in Chicago. He was also the leader of a group of Chicago civic leaders representing the Chicago Council of the Boy Scouts who negotiated the purchase, an additional donation of land that became the US's oldest scout camp, awasapee. In fact, the wasopee was originally called the a Stamford White Ouasapee Scout camp or simply camp White.
[00:02:23] When I am soliciting your support for Scouting in Chicago, giving it the funds to help develop leadership skills and character in our youth. It is built upon the timbre of the leaders who came before us. A Stanford white may have perished from the influenza in 1918, but the influence of his leadership continues to shine brightly today through the Boy Scouts of America and a strong scouting program in Chicago.
[00:02:53] Intercontinental exchange, Ice and IPC systems have launched Ice Voice, a cloud based audio solution integrated with Ice chat. This platform offers seamless communication for traders by combining chat and voice functionalities. Leveraging IPC's Unigi cloud, it supports full audio recording, compliance, tracking, and features like smart text recognition and voice blasts. Marissa Bauman of IcE emphasized that the solution is designed to enhance workflow, efficiency and communication for financial professionals. Shibo Global Markets Vice president, global head of client engagement, data and access Henry Schwartz shared on LinkedIn that over a million options contracts traded in the two minutes following today's half point interest rates cut. Top ten symbols included SPX and broad based ETF's spy qqq, IWM, plus a few interesting names including China ADR, JD.com, sofi Technologies and the three X levered short sqqq ETF. Despite the rate cut fueled afternoon rush, overall option volume today was 2% below recent average levels. That was yesterday. CBOs Nathan Tiefronbrunn has been named as one of financial news most influential in european finance 2024. John Harwood would be the keynote speaker at CBOs RMC in Snowbird, Utah, which runs from October 15 to 18. Harward is the former White House correspondent for CNN and editor at large for CNBC Bestx Research founder and CEO Hitesh Mittal published a commentary today titled Reg NMs. Quick summary and impact.
[00:05:00] Here are some excerpts from in front of Fows paywall from some recent stories Miami International holdings has secured a licensing deal with Bloomberg indices to create equity derivatives, including index futures, options on futures and cash options based on Bloomberg's benchmarks. Meanwhile, CME Group hit a record open interest in sofer futures ahead of a critical central banks rates meeting. Additionally, Euronext is gearing up for increased competition in nordic power derivatives and expanding its derivatives portfolio. Singapore's ABACs Exchange welcomed ADM Investor Services as its a third trading member and LSE group launched a new cross asset pricing data tool. ICE is open to reviving its world cotton contract.
[00:05:55] CFTC chairman Rostam Benham will participate in a fireside chat at the API Clearpath Carbon Innovation Forum in New York City on September 23, 2024. From 04:00 p.m. to 415 at Convene, 237 Park Avenue, second floor, New York, NY 10,017.
[00:06:19] Our most read stories from our previous edition of JLN Options were Miami International holdings announces index license agreement with Bloomberg from MyX Velocity clearing expands operations with new Chicago office from Velocity Clearinghouse and hedge fund titans breed a $14 billion pack of startup cubs from Bloomberg. Subscribe to the free JLN Options newsletter with a link in todays JLN here are more stories from the first read section of todays JLN. Heres a story I wrote for JLN itsy financial industry overcomes t one settlement challenges through collaboration and innovation as financial firms navigate the transition to t one settlement, industry wide collaboration and innovation solutions have played a key role in addressing operational bottlenecks. Rich Robinson, chairperson of ITC, highlights how larger firms adapted quickly, while smaller firms faced unique challenges with time zones and funding models. Improved same day affirmation rates and increased automation helped smooth the transition, but Robinson emphasizes that human oversight and ongoing industry coordination remain essential for future developments. In the shift to t one settlement, financial firms across the industry faced significant challenges and had to make substantial adaptations, according to Robinson, chairperson of ITC, a global trade group that focuses on improving operational efficiency and standards in the financial services sector. The most significant changes vary depending on the size and type of firm.
[00:08:06] Here's a story from Bloomberg the headline with AI dead, celebrities are working again and making millions, from voiceover work to digital human acting jobs and immersive stage shows. Celebrities like Julie Garland, James Dean and Elvis might be dead, but their paychecks are immortal. Can you think of a better way to get into the spirit of Halloween than listening to the legend of Sleepy Hollow, read by the ghost of James Dean? The actor's career may have ended tragically in 1955, but his estate is keeping his paycheck alive through artificial intelligence. Alongside the estates of Judy Garland, Lawrence Olivier and Burt Reynolds, it signed with AI voice cloning startup eleven Labs in July as part of the company's iconic voices project. The actors now narrate books, articles and other text materials put in eleven Labs reader app. Essentially, Garland can now read you the wonderful wizard of Oz or your tax return. The choice is yours.
[00:09:16] My comment this is going to depress the incomes of people who are actually alive. Here's a story from the Financial Times. Dutch bank ING to ditch climate laggards as clients move to restrict financing to companies that fail to address carbon footprint widens gulf with us lenders dutch bank InG will dump large clients it believes are not making sufficient progress on reducing their climate impact. In the latest sign of divergence between european and us banks over the risks of global warming, chief executive Stephen von Ryschwick said ING had put its clients on notice that it would either restrict or stop providing finance to companies that fail to address their carbon footprint on a case by case basis.
[00:10:08] Wars are won by economics as much as on the battlefield. Here's another story, this one from Creighton. Chicago Business the headline CBO CEO on integration fatigue and what's next for the Chicago based exchange? Market volatility and geopolitical uncertainty are driving more investors towards the United States as they look for the biggest market to hedge risk. The trend benefits the Chicago options exchange most popular products. Its VIX options, which track market volatility and its S and P 500 index option contracts. We have got two wars in the world, Tomzik said. Weve got two trade wars, elections and the rise of countries getting more divided. All that sets up for a more volatile market. The market here today has become much more news driven, event driven.
[00:11:07] My comment proactive profile piece by CBO of its 69 year old CEO, who retired seven years ago before getting the CBoe job. Here's the top three stories from Wednesday's JLN our top clicked item Wednesday was Jen Henning's post on LinkedIn about the CME Precious metals dinner last week in New York City, which celebrated CME metals 50th anniversary with Gary Cohn as keynote speaker. Second was Christy Goldsmith Romero's LinkedIn post about her being recognized by the national Asian Pacific American Bar association with the Daniel K. Inouye Trailblazer Award. Third was the ice fixed income monthly report by Chris Edmonds, the president of fixed income and data services at ICe. Here are the top three stories from the lead section of today's JLN. The first story is from Behrens. The headline, new SEC rules will change the price of thousands of stacks new rules that change how stocks are priced and the cost to trade them, were adopted unanimously at Wednesday mornings meeting of the securities and Exchange Commission. The proposals are tamer versions of the ambitious revamp of american stock trading that SEC chair Gary Gensler proposed two years ago in an outcome that has been seen rare in recent years. The commissions republican members joined the Democrat majority in voting for the changes. Still, the new rules could affect the revenue of stock exchange operators such as Nasdaq and Intercontinental Exchange, parent of the New York Stock Exchange. Those exchange operators were not happy with the change. One new rule will reduce the smallest increment for a stock price quote from today's one penny to half a cent on popular stock, where there is evidence that bids and offers would appear at those narrower spreads. The new increments, commonly known as ticks, will apply to stocks priced above $1, narrowing the spread between the best bid and offer.
[00:13:24] Here's another story, this one from Bloomberg. The headline as Tokyo extends stock trading hours, concerns grow. It could stoke volatility. Volume trade volumes may not rise, while liquidity could shrink. Lack of anti gaming measures at closing auction raises worries japanese equities may become more volatile after the Tokyo Stock Exchange extends its trading hours in November, with the risk that investors might be scared off as it comes on the heels of last month's market crash. The Japanese Boris will increase the equities trading hours by 30 minutes beginning November 5, pushing back the cash markets close to 03:30 p.m. and lengthening the daily session to 5.5 hours. The exchange will also introduce a closing auction session to accommodate the increased trading volumes at the end of the day.
[00:14:23] One more story about the tick size, this one from the Financial Times. The headline SEC cuts tick size for stock market trades to half penny regulator softens complex initial proposal after industry pushback, us regulators dumped longstanding penny limits on share trading prices and cut the fees exchanges can charge their users in new equity market rules that nonetheless ended far short of more radical initial plans. Wednesdays changes are the second piece of a broader four part shakeup of us stock trading, first proposed in December 22 by the securities and Exchange Commission. Combined, the plans represent the biggest changes to the stock market structure in 20 years. They have been one key element in the ambitious reform agenda pursued by SEC chair Gary Gensler.
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