Episode Transcript
[00:00:06] Welcome to the John Lothian News daily update podcast for October 1, 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 in an exclusive story, Fow is reporting RJ O'Brien president Dan Stanifer leaves Chicago group. The story said. Stanifurd, who was the firm's chief sales officer before being promoted to president in June 2021, left the group in late September, according to a spokesperson. That is all that is available in front of Fow's paywallen. Other Fow headlines are Merrick's eyes. Environmental market after acquiring spanish broker drop it CME to launch micro Nikkei futures on October 28 ostra breaks euro compression records on recent rate moves and analysis. Recycled metals see higher demand but changes needed today, JLN published an interview I did with EPTA secretary general Peab Teboom titled European Capital Markets face structural challenges. FIA Epta says the EPTE recently published what T Boom referred to as a manifesto titled tide of enhancing liquidity provision to the european economy. The sub headline of the manifesto is Fias EPta policy recommendations for competitive EU capital markets. In the JLN interview, I asked Huboom about the manifesto and recommendations and the role that Epta firms play in the EU capital markets. We noticed an A missing from EPTA in an initial question slide. This has been fixed the New York Stock Exchange, or NYSE, today launched NYSE TV Live, a weekday morning show broadcasting live from the NYSE trading floor anchored by Kristen Scholar. Airing from nine to 10:00 a.m. eastern time, the show features news on global markets, interviews with experts and insights into the day's events at the exchange. Available on streaming platform like YouTube and Apple TV, the program aims to provide a unique view of market activity and significant events at the NYSE. The show enhances NYSE's media offerings by offering real time market insights. It's interesting to see NYSE stepping into the tv space with NYSE TV live instead of solely relying on CNBC for market coverage or their own intermittent floor interviews. By launching their own live program directly from the trading floor, they gain control over how the market news is presented and engage viewers with exclusive content. The move enhances their media presence, allowing them to offer real time updates and interviews with industry leaders in a unique and immersive format, showing that they are keen on innovating on how market information is shared. Yesterday it was proprietary traders who were Wall Street's new titans. In a Financial Times story titled New Titans of Wall street, how trading firms stole a march on big banks, handful of secretive businesses, including Jane street and Citadel securities, have seized market share from the old guard. Now the FT has given asset managers the moniker of Titans with a story titled Asset Management, Wall Street's new titans and a sub headline plus, vanguard pushes into fixed income, egg prices soar, and Wigtown Book Festival. As a Glenbrook south titan, I take offense at all this God making happy birthday to former us president Jimmy Carter, who turns 100 years old today. Carter is the longest lived us president and also the most prolific modern presidential author, having written or co authored 32 books, 20 of which became bestsellers. In contrast, only 16 books about him or his presidency have achieved the same success. Carters presidency, though initially viewed as less impactful, has been revisited for his overlooked achievements and his extensive post presidential writing career, spanning topics from politics to woodworking, has helped helped reshape his legacy beyond his time in office. See a story from the New York Times about him or an editorial in the Wall Street Journal by Democrat turned Republican Phil Graham titled Jimmy Carter champion of deregulation. The former president, who turns 100 Tuesday, gets too little credit for making America competitive again.
[00:05:42] Pete Rose, aka Charlie Hussle, baseball's all time hits leader, has passed away at 83, Bloomberg reported. Despite his legendary career, Rose's legacy was marred by his 1989 lifetime ban from Major League Baseball for betting on games, preventing his hall of Fame induction. A 17 time All Star, Rose played for the Cincinnati Reds, Phillies and Expo, amassing 4256 career hits. Although he was known for his hustle and fierce competitiveness, Rose's achievements were overshadowed by his gambling scandal. Despite his tarnished reputation, his impact on baseball remains undeniable.
[00:06:32] There is a link in today's newsletter for a Wall Street Journal story about him.
[00:06:41] Our most read stories from our previous edition of JLN options were India regulators set to curb blooming options frenzy as risks abound from Bloomberg traders blow off us election risks as stocks race into October. From Bloomberg and Beijing pledges further boosts to ETF industry from the Financial Times subscribe to the free jail on Options newsletter with a link in todays JLN here are more stories from the first read section of today's JLN. Here's an episode of Options Discovery, this one with Cortez Draper as the host.
[00:07:26] Options Discovery episode 34 Retail Options Trend Today, we're diving into the dynamic world of retail options trading, a trend that is reshaping the landscape of trading and investment strategies retail options trading has seen seen a significant uptick in participation since the second quarter of 2020. Retail traders accounted for 26% of notional value traded on C one during that period, up from 16% in the first quarter of 2020. The trend has continued, with retail participation climbing to 31% in the fourth quarter of 2023. The findings of the retail trading and option study reveal valuable insights into the activity and motivations of american retail traders. You watch this episode of Options Discovery on johnlothiannews.com and then here's a video the interview that I did european capital markets face structural challenges, FIA Epta says in response to the FIA EPta's policy recommendations for the new EU political mandate until 2029, titled tide of enhancing liquidity provision to the European Economy, Pboom of the FIA European Principal Traders association, or Epta, discussed the key challenges facing EU capital markets in an interview with John Lothian News european capital markets are an important presence globally, but theyre not in a place where they should be, quote T Boom said. He stressed that this is a critical issue as the European Union requires significant investment to tackle pressing challenges such as climate change, an aging population and common defense. You watch this video on johnlothiannews.com here is a story from WFIA tropical storm Kirk forms expected to become hurricane this weekend NHC tropical depression twelve has strengthened into Tropical Storm Kirk and is expected to become a hurricane later this week, according to the national hurricane center, located 800 miles west of Cabo Verde Islands. Maximum winds are 60 miles an hour. My comment just what I needed being in Florida. A potential hurricane named after a scottish name for a church. A hurricane with a message.
[00:10:17] Here's another story, this one from Bloomberg headline TD bank resolves Treasury spoofing case amid wider us probes banked pay over $20 million in us criminal civil penalties TD also expected to plead guilty in anti money laundering case Toronto Dominion bank will pay more than $20 million as part of a deal with us prosecutors and regulators to resolve investigations over a former craters alleged placement of spoof orders to manipulate the US Treasurys market. The US Department of Justice on Monday said in a New Jersey federal court filing that the canadian bank entered into a three year deferred prosecution agreement to end criminal and civil probes into hundreds of fraudulent spoof orders amounting to tens of billions of dollars of false supply and demand for us securities. My comments this is a problem at the northern border.
[00:11:24] Here's another story, this one from the Wall Street Journal. The headline students demand divestment here's what they are missing. The impact is at best indirect and uncertain, a finance professor argues.
[00:11:37] But there are better ways to accomplish what advocates are seeking disclose divest we will not stop. We will not rest chance students at many american universities demanding that their universities endowments divest themselves of shares of companies they perceive as offensive. The students seem to believe, as many investors do, that selling their shares of these offensive companies, whether supporters of Israel, producers of weapons or distributors of tobacco products, is an effective tool for curtailing offensive operations by depriving companies of money they need to fund those operations. My comment you affect change by investing, not divesting. Here's another story, this one from the Wall Street Journal. The headline the buying power of your credit card points is tanking. Americans hoarded credit card points during the pandemic, but now find points buy less than they used to. Americans are racking up mountains of credit card points. Inflation is eroding their value. Card holders built up a stockpile of points worth more than $34 billion in 2023, up 70% from 2019, according to annual reports from card issuers American Express, Capital one and JPMorgan Chase. But hoarding credit card points is sort of like stuffing cash under a mattress. While cash in the bank or stock market can earn a return that offsets inflation, credit card points can't be invested. My comment why doesn't back have a futures market on the value of points? Here's another story, this one from here are the top three stories from Monday's JLN. Our top story Monday was division of clearing and risk announces staff roundtable discussion on new and emerging issues in clearing from the CFTC. Second was new titans of Wall street, how trading firms stole march on big banks from the Financial Times. Third was a CBOT notice of disciplinary action against Nomura Securities International from the CME group. Here are the top three stories from the lead section of todays JlN. The first story is from Bloomberg. The headline India clears steps to curb trading rush in stock derivatives Sebi limits weekly option contracts to one per exchange India derivatives turnover has slumped since February.
[00:14:28] India's securities regulator on Tuesday notified steps to limit a surge in equity derivatives trading in the nation after growing retail participation took the speculative bets to the highest in the world. The measures include limiting of options, contracts that expire that expiry weekly to one per exchange, upfront collection of margins from traders, as well as an increase in the minimum contract size to at least rs1.5 million, according to a circular published on the securities and Exchange Board of India's website.
[00:15:11] Here's another story, this one from Bloomberg Us funding market volatility fuels spike in keys so for benchmark secured overnight financing rate jumped to 4.9.6% on Monday. That widened gap relative to fed funds rate to 13 basis points, a key rate underlying the us financial system, jumped sharply at the end of September, an indication that volatility surrounding the end of the quarter has returned to the secured overnight financing rate. An important one day lending benchmark link to the activity in the repurchase agreement market rose to 4.96% as of September 30, according to the latest Federal Reserve bank of New York data published Tuesday.
[00:16:03] And then finally, here's one more story from Bloomberg.
[00:16:06] Malaysian bourse eyes value boosting plans to lure stock traders Bursa, Malaysia mulling formalized framework with targets CEO exchange operator aims for 50 ipos in 2025 from 42 this year. The Malaysian Boris is mulling a plan to improve valuations of local companies as it seeks to lure global investors amid similar programs from regional peers. Bursa, Malaysia Bhd is considering a formalized framework where companies may be given targets on metrics such such as price to earnings ratio, return on equity and free float, chief executive Mohammed Umar Swift said in an interview last week. We're grateful for your attentive listening to the John Lothian News daily update. Please spread the word among your friends about our podcast. We would greatly appreciate it if you could spare a moment to leave a review on Apple Podcasts or whatever platform upon which you access our podcast. Your reviews play a crucial role in introducing our content to new listeners. Also, if you havent subscribed to the Daily Johnlothea newsletter email yet you can enjoy a complimentary 90 day trial by visiting johnlotheanews.com trial.
[00:17:32] 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.
