Episode Transcript
[00:00:06] Welcome to the John Lothian News daily Update podcast for April 9, 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 I missed the April 1 Tell at the top of the AI risk story yesterday. I mentioned it was a well told yarn for April Fool's Day and I was played the fool. Simone, I owe you one the US securities and Exchange Commission is hosting the 43rd annual SEC Small Business Forum on April 1618 from 01:00 to 02:30 p.m. Eastern time. The forum will feature speakers discussing various topics related to capital raising, including early stage successes and challenges, building ecosystems for small businesses, and experiences of small cap companies going public. Participants can register to attend and submit policy recommendations in advance by April 12. Registered attendees can ask questions live during the event and prioritize capital raising policy recommendations at the end of each session.
[00:01:32] Former CME executive William Nottenbelt has announced a new role on LinkedIn as a board advisor at Model Omni.
[00:01:42] Nottenbelt aims to enhance market coverage, client development, and technology utilization at model Omni, which addresses challenges in improving trading strategies performance in financial markets using AI technology. Model Omnini boosts traders ability by providing alpha uplift with low risk through optimized trade, timing and execution. The product is currently adopted by various investment firms and family offices. The Greenwood project is offering a variety of volunteer opportunities aimed at making a meaningful impact on the next generation of leadership. Whether you prefer virtual or in person engagement, there is an option to suit your preference. Virtual spring sessions allow you to share your professional experience with scholars focusing on specific career paths, while jam sessions offer the chance to impart industry skills to small groups of eager learners. Lunch and learns provide an opportunity to offer insights into industry roles and topics where you excel and mock. Interviews enable you to help scholars practice their interviewing skills and prepare for job opportunities to get involved, simply fill out the form to sign up and feel free to share with your network. Acuity, in partnership with Broadridge, released a report titled State of the Market FCMS Front, examining FCM front office operations and investment strategies for enhanced efficiency and resilience.
[00:03:25] Cauchy Ex LLC has self certified swap binary option contracts with the Commodity Futures Trading Commission, allowing traders to speculate on various events such as whether Tesla will unveil a robo taxi before a certain date, whether Alexandra de Morass will leave the Supreme Court of Brazil before a certain date and if Brazil will ban or unban X or Twitter.
[00:04:01] In the latest episode of the Alpha Exchange podcast series hosted by Dean Kernut, CEO of Macro Risk Advisors. Mandy Zhu, head of derivatives market intelligence at Cibo Global Market, discusses various aspects of financial markets, risk management and capital allocation with alternatives within the alternatives industry. Zoo explores critical market risk indicators such as skew implied correlation and the innovative VIX Hy high yield, alongside insights into xero DTE and the the nuanced dynamics of capital flows, shedding light on the motivations driving buyers and sellers in today's market landscape.
[00:04:52] Our most read stories from our previous edition of JLN options were LCHSA gains regulatory approval to clear cash settled bitcoin index derivatives from the trade Volatility Forum 2024, part two all options considered from Bloomberg and oil funds turn bullish as mideast conflict intensifies from Reuters subscribe to the free JlN Options newsletter with the link in today's JLN. Here are more stories from the first read section of today's JLN.
[00:05:29] Here's a story from Reuters. The headline Tesla's Musk predicts AI will be smarter than the smartest human next year Tesla CEO Elon Musk on Monday predicted development of artificial intelligence that was smarter than the smartest human, probably by next year or by 2026. In a wide ranging interview on x spaces that suffered multiple technology glitches, Musk also told Norway wealth fund CEO Nikolai Tenjin that AI was constrained by the availability of electricity and that the next version of Grok, the AI chatbot from his exai startup, was expected to be trained by May.
[00:06:17] My comment and just like that, Cliff Klavin was supplanted as the smartest human.
[00:06:24] Here's a story from Bloomberg. The headline Swiss failed citizens on climate human rights court says ruling hinges on link between climate changes and human rights plaintiffs cited forest fires flooding as threats to human lives.
[00:06:44] Switzerland failed to protect its citizens from the ravages of climate change, the European Court of Human Rights said in a landmark ruling likely to have ramifications across the continent. In a first of its kind case brought by four women and a swiss senior citizens association, the Strasbourg, France based court ruled on Tuesday by a margin of 16 to one that the swiss confederation had failed to comply with its duties concerning climate change and so violated their right to respect for private and family life. Mike the US could use a human rights court. Here's another story, this one from CNBC. The headline corporate bullying Aberdeen CEO slams press jabs at the company's rebranded name. The press making jab that the current name of asset manager Aberdeen, which was rebranded from Standard Life Aberdeen, amounts to corporate bullying. The firm's chief investment officer, Peter Branner, said. The firm announced its renaming in April 2021 and has faced consistent ridicule, jokes and jibes in the media since then. In a statement released at the time, the firm said its name was pronounced Aberdeen, as if the vowels remained included, and that the rebranding marked the next stage in the reshaping of the business and future focus growth strategy. The firm CEO then described the new brand name as modern, dynamic and engaging. My pat I would like to buy a vowel and solve the puzzle. E.
[00:08:41] Aberdeen here are the top three stories from Monday's JLN our top story Monday was the Financial Times here are the top stories from Monday's JLN. Our top story Monday was the Financial Times bears and wolves stray into european politics, which was number two on Friday. Second was I am worried Fed president issues incredible bitcoin price prediction amidst shock inflation warning from Forbes. Third was diamond likens AI's transformational impact to steam engine from Bloomberg here are the top eight stories from the lead section of today's JLN.
[00:09:24] European court rules failure to cut greenhouse gases violates citizens rights case was brought against Switzerland by a 2000 strong group of women. Europe's top human rights court has ruled that a government's failure to cut greenhouse gas emissions can be considered a violation of citizens rights in a decision that will set a benchmark for future climate litigation. The case, brought against Switzerland by a 2000 strong group of senior swiss women, aged mainly in their seventies, was successful on the grounds that it failed to protect citizens from the serious adverse effects of climate change on lives, health, well being and quality of life by not meeting its own climate targets.
[00:10:18] There are also stories from Reuters, Associated Press, the Wall Street Journal, Politico, the Washington Post, the Washington Post, Bloomberg and the Guardian on this story. Here's another story, this one from the Financial Times. The headline Citadel securities moves data and algorithm testing to Google cloud Miami based market makers shift shows developing a relationship between big tech and financial markets, billionaire Ken Griffin, Citadel securities has moved the testing of the algorithm that powers its millions of trades in a day into the cloud to cope with the vast quantities of data thrown up by financial markets. The Miami based market maker has switched storage of trading data and running the programs that simulate price movements out of its own servers and into Google's cloud computing service, it told the Financial Times.
[00:11:17] Here's another story, this one from the Wall Street Journal. The headline, the black market that delivers Elon Musk's Starlinks to us foes. The satellite Internet devices are helping russian fighters in Ukraine and paramilitary forces in Sudan. SpaceX hasn't shut them off.
[00:11:38] A salesman at Moscow based online retailer shops has supplemented his usual business of peddling vacuum cleaners and dashboard phone mounts by selling dozens of Starlink Internet terminals that wound up with Russians on the front lines in Ukraine. Although Russia has banned the use of Starlink, the satellite Internet service developed by Elon Musk's SpaceX middlemen have proliferated in recent months to buy the user terminals and ship them to russian forces. That has eroded a battlefield advantage once enjoyed by ukrainian forces, which also rely on the cutting edge devices. Here's another story, this one from Bloomberg the headline public markets are the new private markets DXYZ, crypto securities law, shadow trading and the cost of firing french traders a not uncommon situation is you are an employee of a hot tech startup, you own stock in your startup but you cant sell it. One reason that you might not be able to sell it is that the company isnt public yet, so the shares arent listed on the stock exchange and there is no easy way to sell them. But that problem can be overcome. People want to buy stocks of hot private startups. There are online marketplaces and brokers looking for shares, and probably with a bit of effort you could find a buyer. Here's another story from Bloomberg the headline yuan trading in russian FX market again grows to record in March. The share of yuan trading on russian foreign exchange market reached a new high in March as its importance in the country's economy continues to grow. The turnover of exchange traded yuan amounted to 53%, while its share in over the counter trading also set a record of 39.6%, according to the bank of Russias financial Risk review for March. After Russias February 2022 invasion of Ukraine and the subsequent sanctions imposed by the US and its allies, Moscow sought to rapidly reduce the role of dollars and euros in its economy as it reduced directed trade towards Asia and away from Europe.
[00:14:12] Another story from Bloomberg crypto traders criminal trial tests code is law claim a jailed trader accused of stealing $110 million on the mango markets exchange faces a criminal trial this week that will test the reach of a us crackdown on cryptocurrencies. Prosecutors charged Aviram Eisenberg with manipulating mango markets futures contracts on October 11, 2022 to boost the price of swaps by 1300 percent in 20 minutes. He then borrowed from the exchange against the inflated value of those contracts, a move the government claims was a theft.
[00:14:58] Here's a story from fortune. The headline social order could collapse, resulting in wars two of Japan's top firms fear unchecked AI warning humans are easily fooled Japan's largest telecommunications company and largest newspaper have issued a stark warning about the artificial intelligence, saying that if it's allowed to go unchecked, it could result in the collapse of society as we know it. The technology is also expected to improve labor productivity to a certain degree, they add. Nippon Telegraph and Telephone and Yamori Shibun Group holdings on Monday released a joint proposal on shaping generative AI, urging officials to revise laws surrounding the technology and saying AI is already having a negative impact on users. And then finally, here's a story from securities Finance Times. The headline collateral renaissance from ugly duckling to market powerhouse, the industry has no choice. It must modernize, automate and optimize its processes or risk falling behind, market experts tell Sophie downs. Collateral management was once viewed as the ugly duckling of the financial services suite, according to Gail Delaunay, global head of collateral management at Clearstream. And much like Anderson's fairy tale classic, Collateral has morphed into a captivating market player. Penned by Delaunay as a fully fledged trading activity driving profit and loss, the service is now a vital aspect of the securities finance ecosystem, owing to its growing importance. It also warrants significant discussion amid rising interest rates, operational costs and regulatory pressures, a robust collateral framework is more important than ever.
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