Episode Transcript
[00:00:06] Welcome to the John Lothian News Daily Update podcast for August 6, 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.
[00:00:25] Join your friends for an exciting evening at the racing to move Scouts forward fundraising event dedicated to supporting the Boy Scouts of America and the Pathway to Adventure Council. This unique event will take place on September 25, 2024 from 05:00 p.m. to 08:00 p.m. at the iconic Chicago Board of Trade building, participants will have the chance to engage in a thrilling Pinewood derby race where donors who contribute ahead of time will receive a blank car kit to design and build their own racing vehicle. This is a fantastic opportunity to showcase creativity and engineering skills while supporting youth development programs that empower young scouts with essential life skills. Team members can race cars from their youth or ones they designed with their scout. If you attend without a car, you can even rent one at the race. You can see a video about the P Tech all council Pinewood Derby race at the Woodfield Mall in April from a link in today's newsletter from a WGN nine video report.
[00:01:41] Advantage Futures has already donated $50,000 to the event and challenged us to raise an additional $100,000. If we meet this goal, they will increase their donation to $100,000. Help us meet this challenge. The evening promises to be filled with friendly competition, networking opportunities and community spirit, making it a memorable experience for all involved. Don't miss out on this chance to make a difference in the lives of young scouts while enjoying a fun filled night. Secure your car kit and join us for an unforgettable evening of racing and camaraderie. For more information and to register, go to link in today's newsletter let's race to move scouts forward Scott Eisner's family has set a date for a celebration of life for Scott on September 12, 2024 from one to 04:00 p.m. at the Brushwood center at Ryerson's woods in Riverwood, Illinois. This is the site where Scott and his widow, Tracy, were married. It will be an informal event. How informal? You are encouraged to wear a hawaiian shirt. Scott loved to wear them. You are encouraged to bring your stories about Scott and share them at the event. You can read Scotts obituary with a link in Todays newsletter. If you cant attend, you are encouraged to share a memory on the tribute wall of the obituary website.
[00:03:14] In July 2024, CBO Global Markets reported significant increases in trading volumes across several key areas. Index options saw a 20.2 year over year increase to an average daily volume or advanced 4,140,000 contracts, while futures rose 26.1% to 267,000 contracts. Multiply listed options also grew by 1% to 11,145,000 contracts. Increases were observed in us equities off exchange trading 3.5%, canadian equities 2.9%, european equities 11.8%, CBO Clear Europe cleared trades 26.7% and net settlements, 28.2%, australian equities 23.7%, japanese equities 306.9% and global fx, 1.4%. However, there were declines in us equities on exchange trading -5.9% and canadian equities saw a substantial month over month decrease of 20.8%, along with smaller declines in european equities -4.6% and australian equities -2.6 in disciplinary news from the CME Group on December 11, 2023, the chief regulatory officer charged Lee Sung with violating the Commodity exchange or Comex, and the Chicago Board of Trade Rules 575 B and 432 L, two between June 18, 2021 and September 28, 2021, Lee entered actionable orders in copper, silver, gold, soybean oil, corn, soybean meal and wheat futures markets with the intent to mislead other participants and gain fair favorable pricing. Lee engaged in order layering, creating imbalances to induce trades into her smaller resting orders. She also failed to fully cooperate with the investigation by not answering all questions. The business conduct committee found Lee guilty and ordered her to pay a fine of $100,000 with $50,000 allocated to Comex and $50,000 to the CBOT. Additionally, Lee was permanently suspended from direct and indirect access to any CME Group trading floors, designated contract markets, derivatives clearing organizations, or swap executions facilities, effective immediately. The CME Group's E mini S and P 500 equal weight futures set several records in July, including open interest of 5719 contracts, single day volume of 23 76 contracts, and block volume of 1430 contracts. See me share it on LinkedIn Mary de Wet is starting a new position as managing editor at American Banker. She was previously America's chief editor at Dow Jones, overseeing reporters and editors covering financial news from Canada to Brazil for Dow Jones Newswires. She shared on LinkedIn, it is getting to be that time of year again when college students get ready to go back to school or go back to college for the first 1st time the Wall Street Journal obliges with an article titled 33 things every student needs to pack for college with the sub headline top dorm room essential is to jumpstart campus life. I did not see an air popper popcorn maker anywhere on the list. How times change the new filing of the Green Impact Exchange with the SEC is among the news tidbits included in the August newsletter from the UN Sustainable Stock Exchanges initiative. Other information includes updates on SSE initiatives and upcoming workshops, the latest updates from exchanges, and news from regulators and standard setters. Topping the standard setting news is information on a joint mapping resource from the global Reporting initiative and the task force on Nature related financial disclosures.
[00:07:59] You can register to receive the monthly newsletter with a link in Today's newsletter here are the most read stories from our previous edition of JLN options. The first one is Steve Soznick of interactive brokers discusses trends and risks in the options market at Asheville conference from John Lothian News the second is Flex trade VP Rob Brogan discusses AI zero Day options and Algo innovations at Options conference from John Lothian News and the third is EEX Press release EEX Group monthly volumes from EEX Group. 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.
[00:08:46] Here's episode twelve of Futures discovery agricultural navigating the Fields Futures Discovery episode twelve today we are delving into the intricate world of agricultural futures, a realm shaped by the rhythm and nature and the pulse of global markets. In this episode, well explore the quantitative challenges that traders face in the real world. It's not just about numbers on a screen. It's about the unpredictable nature of weather, critical data in crop reports and the global dance of trade policies. You can watch this video on johnlothiannews.com.
[00:09:31] here's that Steve Soznick video Steve Soznick of interactive brokers discusses trends and risks in option market at Asheville Conference here's another video former ABN AMRo executive Mike Dennis discusses market trends and opportunities in crypto and fixed and fixed income at options conference. Those are our last three videos.
[00:09:57] Here's a story from Bloomberg. The headline Google monopolized search through illegal deals Judge rules Google's deals with Apple and others violate law judge says Google paid billions to make search engine default on phones Google illegally monopolize the search market through exclusive deals, a judge ruled Monday, handing the government a win in its first major antitrust case against a tech giant. In more than two decades. Judge Amit Mehta in Washington said the Alphabet Inc. Units $26 billion in payments to make its search engine the default option on smartphones and web browsers, effectively blocked any other competitor from succeeding in the market.
[00:10:49] Googles distribution agreements foreclose a substantial portion of the general search services market and impair rivals opportunities to compete, Meta said in a 286 page ruling.
[00:11:05] There is a big difference between googling something and yahooing something.
[00:11:09] Here is another story, this one from the Associated Press via US News and World report the headline Pindemonium hits Paris inside the pin trading market at the Olympics on the other side of the Atlantic from Wall Street, a market more wholesome than cutthroat has sprung up at the Paris Olympics.
[00:11:32] On the other side of the Atlantic from Wall Street, a market more wholesome than cutthroat has sprung up at the Paris Olympics. The commodity at the center of it all pins. The city has seen an influx of collectors from all over the world eager to begin or expand their Olympic pin collection and share their stories. My comment at events like the Olympics, pin trading is a big activity in scouting at the jamborees. It's patch trading. All my offspring have participated in patch trading at jamborees and have unique stories to tell about each patch they traded for. Here's another story, this one from Ft. Alphaville. The headline?
[00:12:19] Help us round up the greatest financial research puns of all time. Shameless summer content bag as the bleak midsummer simmers on Ft. Alphaville has found itself thinking a lot more about puns. We know you readers like punsitive. You know we journalists like puns. But there's a third group in this happy financial throuple, research producers. The analysts, economists, commentators, cheerleaders and doom mongers whose notes floods our inbox each day, are often partial to some skillful world wordplay. So we have a simple proposal. We want to collate and celebrate the greatest ever financial note punsitive my comment IPO initial pun offering subscribe now.
[00:13:13] Here are the top three stories from Monday's JLN our top story Monday was the weirdest story. Robert F. Kennedy junior admits he left a dead bear in Central park. From the New York Times the stock market crash only came second with Japan's Nikkei's biggest route since 1987. Stock market from Reuters third was the announcement for the FIAS trends in ETD trading second quarter 2024 webinar taking place tomorrow, August 7, from 09:30 a.m. to 10:30 a.m. eastern time. The event is hosted by Will Ackworth, and the guest speaker is Scott Klipper of Gresham Quant. Here are the top three stories from the lead section of todays JL lens. The first story is from the Wall Street Journal.
[00:14:06] The Treasury market scandal hiding in plain sight experts warn manipulation could risk Treasurys credibility as a benchmark asset. There is a scandal hiding in the open, one that threatens the integrity of global financial markets if left unchecked, experts say, though, its not capturing headlines, the manipulation of prices by traders in the $27 trillion US treasury market may be more pervasive than the UK liber episode that rocked the banking world more than a decade ago. Us regulators and financial institutions have tried to get their arms around the problem for years. Now, some experts are warning about a lack of meaningful progress in the thwarting whats described as widespread, commonplace misbehavior. The message comes at a pivotal moment. Technological advances over recent years have improved financial institutions ability to monitor manipulative activity and also increase the pace of trading abuses. Heres another story, this one also from the Wall Street Journal. The headline overnight stock trading suspended at Robinhood Robinhood markets wont execute overnight stock trades from Monday to Tuesday after the trading platform it relies on went offline during the huge global sell off. In a post on X, Robinhood blamed the problem on an outage at Blue Ocean, a trading platform that powers overnight stock and ETF trades for some brokers. Blue Ocean wont be up and running again for the Monday Tuesday overnight session, Brian Hidman, the chief executive of the platforms parent company Blue Ocean Technologies, said in an email. He expressed hope that it would be back up on Tuesday night.
[00:16:07] Here's another story. This one is from Bloomberg. The headline $6.4 trillion stock wipeout has traders fearing great unwind is just starting. The numbers flashing on trading screens on Monday were shocking even to market veterans. In Tokyo, the nick guy was down 12%. In Seoul, the Caspi sank 9%. And when the opening bell rang in New York, the Nasdaq plunged 6%. In seconds, cryptocurrency sank. The ViX, a gauge of stock market volatility, skyrocketed and investors piled into treasury bonds, the safest asset of them all. Whether Mondays wild gyrations marked the final bang of a global selloff that started to build last week or signaled the beginning of a protracted slump is impossible to know. On Tuesday, some of the worst hit markets rebounded, with key gauges in Japan soaring more than 10%, though a few were saying a bottom had been reached.
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