Episode Transcript
[00:00:06] Welcome to the John Lothian News daily Update podcast for May 21, 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 today we have another video from our FIA Boca coverage sponsored by Wedbush, this one with the GFO ex CEO Arnab Sen. The second video is the first of our coverage from our 2024 options conference JLN industry leader video series sponsored by the OCC.
[00:00:48] Martin Grunberg, the chairman of the FDIC, said in an email to staff he would resign once a successful has been confirmed, bowing to criticisms about a toxic work environment at the commission. The scenario avoids turning the commission over to the republican vice chairman as acting chairman, the Wall Street Journal reported.
[00:01:11] How important is artificial intelligence? According to a Bloomberg story, JP Morgan will be training every new hire on AI, preparing them for a technology chief executive officer Jamie Dimon has likened to the impact of the printing press and steam engine.
[00:01:32] The Financial Times has an obituary for Ivan Boesky, the infamous Wall street arbitrageur known for his insider trading linked to the major deals of the 1980s, who died at 87. Boesky gained fame as a mergers expert with an uncanny ability to predict corporate combinations. Amassing a fortune. He openly flaunted his notorious 1986 commencement speech at UC Berkeley, where he praised greed inspired the iconic greed is good catchphrase in Oliver Stone's film Wall Street. Boesky's actions made him a symbol of Wall Street's greed and malfeasance. The New York Times also has an obituary on Boesky. Intercontinental Exchange Inc. Announced the results of its 2024 annual meeting of stockholders held on May 17. All ten director nominees were elected to one year terms, each receiving a majority of votes cast. Stockholders approved an advisory resolution on executive compensation and ratified Ernest and young LLP as independent registered pub.
[00:02:53] As the independent registered public accounting firm for 2024. A stockholder proposal for an independent board chairman was not approved in line with the board of directors recommendation. Broadridge Financial Solutions, Inc. Verified and tabulated the voting results. A replay of the meeting is available with a link in today's newsletter.
[00:03:19] Join Bloomberg on Thursday, May 23 for equity for us equity market Structure 2024 Financial Markets innovation an event exploring the evolving landscape of us equities markets. Discover the latest SEC market structure rules, innovative liquidity solutions, and cutting edge mechanisms reshaping institutional equity trading. Learn about the paradigm shift in retail investing driven by lower trading costs, advanced analytics and 24 hours markets. The event kicks off with registration at 04:00 p.m. followed by opening remarks from Larry Tabb of Bloomberg Intelligence. Highlights include a fireside chat with housing Zhu from the SEC, panels on the retail brokerage, panels on retail brokerage and institutional equity market structure, featuring leaders from Webull, Wells Fargo, Robinhood, Nasdaq and Jefferies, and more.
[00:04:31] The evening concludes with a fireside chat with Doug Sifu, CEO of Virtu Financial, and a networking reception. The global FX division and the Foreign Exchange Professionals association are hosting a webinar on June 11, 2024, from 11:00 a.m. to 12:00 p.m. eastern Standard Time. That's 04:00 p.m. to 05:00 p.m. bST to discuss the FX market's transition to a t one settlement cycle for us securities, effective May 28, 2024. The webinar will cover key themes such as FX funding and liquidity and market structure adjustments. Post transition speakers include Jeanette Dawson, Lisa Danino Lewis, rich Turner insite Investments, Nigel Todd from Fidelity International and Jordan Barnett from BNY Mellon Markets. The event is free and open to all FX participants but closed to the media and industry analysts. Yesterday, the SEC published links to opinions and orders concerning both litigated and settled administrative proceedings instituted by the commission involving the following individual and firms George Rauch, FKA George Fastiano, Raymond Lawrence Lent, DBA, the Putney Financial Group and registered investment Advisors Quantstamp Inc.
[00:06:27] Syncrust Technologies Incd. Incident Beichir Moultrin works at Gatschafst, BMW of North America LLC and BMW US Capital LLC, Chattan Asset Management LLC and Anthony Melkorn and Kirchner Trading Americas LLC.
[00:06:59] Peter Babook Peter Babak started a new position as vice president a new position as vice president senior vendor manager at Alliance Global Investors. I first encountered Peter when he was at the Tokyo Stock Exchange, where he worked for ten years. In a speech, ASIC chair Joseph Longo, accompanied by executive director of Markets Kalisa Aldridge and Digital and legal Transformation lead Jefferson lead Graham, Jefferson addressed the select Committee on Adopting Artificial Intelligence, emphasizing ASIC support for the safe and responsible use of AI in australian businesses and highlighting the potential benefits and risks associated with AI tools. He outlined ASICs proactive engagement with industry and regulatory peers to monitor AI developments and mitigate consumer harms. Longo also announced an AI regulator symposium in partnership with the University of Technology, Sydney to discuss AI's impact on regulation. ASIC aims to be a digitally enabled and data informed regulator by 2030, with current laws applying equally to AI and non AI systems to protect consumers and investors.
[00:08:39] Why are we in the midst of the spring camping season?
[00:08:43] We are in the midst of the spring camping season, but also the spring storm season, and it is always good to be prepared for when the power goes out. The Wall Street Journal has a story for both titled 16 Emergency Preparedness Essentials to stock up on now, according to prose with the sub headline, here's everything you should have in your home's kit in case of blackout, superstorm or yes, pandemic. Yes, there's an overlap between camping and blackouts. I know you may have come to depend on the New York Times for your summer reading list, but the Wall Street Journal has a summer reading list, but not from its editors, but from JPMorgan. The story is titled jPMorgan releases 25th Annual Summer Reading list Our most read stories from our previous edition of JLN options were Natural gas skew ratio chart from CME Group, CME Group Volatility, C Valve from cGroup, CME Group, and Nasdaq to market new options strike listing tech to other exchanges from waters technology.
[00:09:59] 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 our sponsored content contribution from our friends at FTSE. Russell Russell 2000 Index Quarterly chart Book, May 2024 and Rusle reconstitution the Russell 2000 index provides live index tracking data with historical performance data dating back to January 1984. Academic and practitioner research confirms that large cap stocks behave differently to small cap stocks and performance is variable. There are sub periods during which the Russell 1000 outperforms the Russell 2000 and vice versa. Quarterly performance assessments provide valuable data points for understanding market sentiment and us economic activity. View the report with a link in Todays newsletter.
[00:10:57] Four decades of Russell US indices reconstitution the Russell US indices are designed to reflect the ever changing us equity market, and the annual reconstitution process is critical to to maintaining accurate representation. The schedule for the annual reconstitution of the Russell US indices suite is set for Friday, June 28. The newly reconstituted indices will take effect after the market closes on the same day, Friday, June 28, 2024. For more information, please visit a link in Todays newsletter.
[00:11:38] Then here's a video from our Boca series. Arnab Sen discusses institutionalization of digital asset markets at FIA conference Arnab Sen, co founder and CEO of GFOX shared insights on the institutionalization of cryptocurrency trading during an interview for the JLN Industry Leaders series sponsored by Wedbush at the FIAS International Futures Conference in Boca Raton, Florida. You can watch this video on johnlothianews.com and then heres another video Randolph Roth discusses regulatory challenges and market growth in JLN industry leaders series in a recent interview as part of the JLN Industry Leader series at the Options industry conference sponsored by the occupancy, Randolph Roth, executive member of the Eurex board, shared insights into the evolving cryptocurrency and derivatives markets, highlighting both regulatory challenges and market growth. You can watch this video on johnlothianews.com. then heres a story from Bloomberg the headline what a world growing older, fast means for investing Idana Appio spent 15 years at the Federal Reserve bank of New York analyzing the history of sovereign debt crises. Now, as a fund manager at the $138 billion First Eagle investments, she has reached a conclusion, US treasury bonds are too risky to hold. The call looks far beyond the timing of much anticipated Federal Reserve cuts. Its tied to a new era of faster inflation, higher government health spending, and bigger deficits. And behind all of that, the fact that the world is getting older fast and it's time to get portfolios ready. My comment it means that I have carpal tunnel when I point and click trade. That is what it means. Here's another story, this one from the Wall Street Journal. The headline Jamie Dimon says his retirement is getting closer. Finally, JPMorgan chief executive says his timeline isn't five years anymore. Jamie Dimon acknowledged that he is likely to be leaving his role as chief executive officer of JPMorgan Chase in fewer than five years.
[00:14:16] For at least the past decade, Dimon has answered questions about potentially retiring with the same boilerplate response, five more years. On Monday, the 68 year old admitted that the clock is finally starting to tick. My comment who will retire first, Jamie Dimon or CME groups? Terry Duffy diamond is 68. Here's another story, this one from the New York Times. The headline this man did not invent bitcoin. For years, Craig Steven Wright, an australian cryptocurrency enthusiast, claimed to be Satoshi Nakamoto, the mysterious creator of bitcoin. Then the courts got involved. For much of its existence, the cryptocurrency company Enchane was governed by a golden rule of office politics. It was not a good idea to challenge Craig Stephen Wright, the chief science officer at NChain's London offices. Doctor Wright, an australian computer scientist, was treated as a sort of philosopher king. He wore three peace suits and drove a Lamborghini. A middle manager would tape doctor Wrights ramblings about obscure technical matters and then share the recordings with a staff of researchers who were instructed to turn his musings into patents.
[00:15:42] The verdict was Craig wrong.
[00:15:45] Here's another story, this one from the Financial Times. The headline Ivan Boesky, convicted trader, 1937 to 2024 arbitrageur, came to fame as mergers expert, but his scandal helped define Wall street excess.
[00:16:04] Ivan Boesky, a Wall street arbiture a Wall street arbitrarily arbiter whose trading on insider information connected to megadeals of the 1980s made him a symbol of Wall street greed and malfeasance, has died. At 87, Boesky rose to fame as a mergers expert with a seemingly superhuman ability to foresee corporate combinations. Wall Street's deal making was suddenly on overdrive and minting fortunes, including one for Boesky that he happily flaunted his 1986 commencement speech to University of California, Berkeley business school graduates in which he extolled the virtues of green, helped inspire the Gordon gecko catchphrase in Oliver Stone's later movie Wall street that greed is good. Mike Hammond I can remember when being a Wall street arbiter was cool. Here are the top three stories from Monday's JLN. Our top clicked item Monday was Jack Bogle haystacks and putting the interests of the clients first prepared remarks before the 2024 conference on emerging trends in asset management from SEC chair Gary Gensler. Second was a tie between the CBoe post on LinkedIn with a picture of the new CBO branded cabs in London and the Amazon.com page for the great Mutual Fund Trap, an investment recovery plan by Gregory Baer and Gary Gensler. Third was a tie between Edie kicks off a week of content and online events dedicated to the circular economy, from Edie and Nasdaq to market new options strike listing tech to other exchanges from Waters technology here are the top three stories from the lead section of today's JLN. The first story is from the Wall Street Journal. The headline FDIC chairman Martin Grunberg to resign following a report detailing sexual harassment at agency. Grunberg plans to stay until successor is confirmed, avoiding scenario that would leave a Republican as acting chairman.
[00:18:40] Federal deposit insurance Corp. Chairman Martin Grunberg bowed to pressure to resign from the bank regulator after an external investigation found widespread sexual harassment at the agency, and lawmakers of both parties berated his leadership. In an email to staff Monday, Grunberg said he would resign once his successor had been confirmed, avoiding a scenario that would leave FDIC Vice chairman Travis Hill, a Republican, as the agency's acting chairman.
[00:19:14] Here's another story, this one from the Wall Street Journal. The headline the crypto industry is trying to elect political allies. The stakes couldn't be higher.
[00:19:24] Coinbase Kraken and others are fighting for survival after a regulatory crackdown.
[00:19:31] Crypto companies are fighting for survival after a regulatory crackdown. Their latest strategies? Spending big on this year's elections. The industry has amassed a formidable war test and is working to elect politicians it sees as allies and defeat those who are critical. A trio of super political action committees has together raised more than $85,000,000.01 of the largest amounts among PACs engaged in the 2024 elections. And then, finally, here's a story from Bloomberg. The headline us wheat comes to rescue market plagued by russian shortfall, wheat is one of the world's most vital crops. The grain is used in staples like bread, kooks, cousins, chapadas and noodles, and high prices for the commodity have a long history of kickstarting unrest. Current global inventories are tight, and a spat of bad weather means analysts have been chopping estimates for the next harvest from Russia, the world's largest exporter. Benchmark prices have jumped more than 10% this month.
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[00:21:22] 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. Don't.
