Episode Transcript
[00:00:01] Foreign welcome to the John Lothian News Daily Update podcast for October 29, 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 Aquas Exchange and CBOE Europe today announced a joint venture, Simplicity, to bid for the role of EU's consolidated tape provider for equities. Simplicity, co owned by Aquis and cbo, will be headquartered in the Netherlands and will aim to create a reliable, cost effective CT solution to simplify and enhance visibility in EU equity markets. The venture aligns with the EU Capital Markets Union objectives, aiming to attract global capital by improving market access and transparency. Both companies bring extensive expertise handling over half of daily European equity trades and plan to leverage their technology and operational strengths to meet the high standards expected by regulators.
[00:01:28] The selection process managed by the European securities and Markets Authority will begin in June 2025 with a decision expected by the end of the year. If selected, Simplicity will operate under a governance framework ensuring fair treatment of data contributors and consumers, providing a consolidated real time view of E you market activity as National Cybersecurity Awareness Month concludes, the Internal Revenue Service and its Security Summit partners have issued a reminder to taxpayers about the importance of online safety with the upcoming tax season in mind. They emphasize the need for vigilance against identity theft and fraud in digital spaces. The the IRS warns that careless online behavior can expose individuals to scammers seeking personal information, potentially leading to tax related identity theft. To combat these thefts, the Security Summit offers several key recommendations. They include recognizing and reporting phishing attempts, protecting personal information online using strong passwords and multi factor authentication, keeping software updated and using VPNs on public wi FI networks. The IRS stresses that it does not use unsolicited email or social media for personal tax matters and any such communications should be treated with suspicion. They advise forwarding suspicious emails to phishingirs.gov for investigation. The guidance also extends to educating children and teens about about online safety to protect entire families from cybersecurity risks. By following these guidelines, taxpayers can better safeguard their personal and financial information as they navigate the digital landscape and prepare for tax season. MyEx exchange group shared on LinkedIn that mix Sapphire, the newest options exchange at the Exchange Group, officially crossed the 1 million contract milestone on October 25, 202024 when its volume reached 1,018,797 contracts traded. Rohit Bhatt has been promoted to General Manager and Managing Director of Google Cloud for Financial Services from Managing Director of Google Cloud for financial services, including capital markets, digital assets and exchanges, he shared on LinkedIn. I forgot to mention another Howard Lutnick story from his Madison Garden appearance during the Donald Trump event. He introduced Elon Musk to the crowd as the greatest capitalist in the history of the United States and announced that he and Musk were co founding the Department of Government Efficiency.
[00:04:45] That would be doge. Get it? Musk has said he believes he can cut $2 trillion from the budget. Given his pennant for sophomoric humor like the Doge reference, I'm surprised it was not 2.420 trillion. Meanwhile, it looks like there's only one trade on the FMX exchange yesterday for 110 contracts of the March 2025 SOFR futures and open interest stands at 1308 contracts. See the Daily Trader Report page for the very limited details. Benzinga has a story by Latoya Scott titled Is Bitcoin a Dangerous Economic Threat? Paper from University of Minnesota professor proposed heavy Taxation or outright Banning as a solution.
[00:05:47] Here are the headlines from in front of fow's Paywall from some recent stories. BGC chief Lutnick calls for Bitcoin to be regulated as commodity analysis EEX Baltic Finnish gas migration to provide margin benefits and CME Trade's first Chinese spadioline futures as lithium Hedging tools the Wall Street Journal today has a story today to help you open your next bottle of wine. The story is titled the 14 Best Wine Openers according to sommeliers and restaurateurs.
[00:06:28] My time in Florida is coming to an end. I'm finishing up my work here, though the roof will have to wait until there are contractors available. Over the weekend I was a painter and today I am a flooring guy laying LA flooring in the living room of the home. I will probably return to Florida in December to finish up my work and address the roof issues. I leave on Thursday after the technician from Frontier finally hopefully comes to fix my Internet services.
[00:07:02] Our most read stories from our previous edition of JLN Options were futures industry still grappling with post trade challenges, expert says. From John Lothian News Election risk premium continues to widen into elections week. From CBO and crypto exchanges turn to derivatives to lure cautious investors from the Financial Times. Subscribe to our 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 that story from JLN Futures industry still grappling with post trade challenges, expert says in an interview with John Lothian of John Lothian News. Joanna Davies, a managing director at Ostra, shed light on the ongoing challenges in the futures industry post trade processes. The discussion centered around the findings of an Acuity report and the industry's response to issues that flared up in 2020. Davies emphasized that the Acuity report served as a validation of Ostra's understanding of the problems plaguing the industry. Two themes emerged. She noted the risk introduced by the heavy handed position transfer process in the ETD market and the complexity and cost of collateral and margin optimization. The reaction from clients to the report was one of fatigue, according to Davies. Watch this video on john lothianws.com Here's a story from Yahoo Finance the headline why Janet Yellen Wants More Americans to have a Bank Account Treasury Secretary Janet Yellen is unveiling a plan Tuesday designed to ensure more Americans have bank accounts and affordable credit outcomes that she argues will create a stronger and more equitable economy. The initiative is part of the first ever strategy by the Treasury Department to increase access to the financial system for Americans as requested in 2023 by Congress. My comment I am guessing it is not so you can deposit your Bitcoin. Here's another story, this one from Reuters. The headline JP Morgan CEO Jamie Dimon says it's Time to fight Back on Regulation JP Morgan Chase CEO Jamie Dimon blasted several US Financial regulatory initiatives on Monday and vowed to oppose those he said would not make banks Safer. The outspoken executive 68 who runs the largest US lender criticized what he called overlapping or ill conceived rules on capital requirements, card payments and open banking. My comment sounds like Jamie Dimon is talking himself into a new job.
[00:10:08] Here's another story, this one from the Daily HODL 2.5 billion Gmail users targeted in viral AI hack that tricks users into accepting Security Alert Report A sophisticated new artificial intelligence AI powered scam is targeting billions of users on the world's largest email service. Microsoft Microsoft security expert Sam Mitrovic writes in a new blog post about a super realistic AI scam call that mimics American sounding voices to trick Gmail users into giving up their login credentials. My comment See my warning above from the irs.
[00:11:02] Here's a blog post from Born Tech. The headline Helping make the World Safe from Automated customers. Thoughts on the FIA Whitepaper Continuing their tradition of market leadership, the Futures Industry association recently updated the white paper Best Practices for Automated Trading Risk Control System Safeguards. The white paper covers everything from pre trade controls to post trade analysis as they relate to automated trading and the FIA aptly points out that all market participants, exchanges, trading firms, brokers, clearing firms and third party system providers have a role to play in ensuring that the highest standards are adopted and followed my comment Derek had me at helping make the world safe.
[00:11:59] Here are the top three stories from Monday's JLN Our top story Monday was New Lisbon woman dies Saturday after vehicle becomes submerged in Juneau county from the Wisconsin Rapids Tribune about the death of Ann Bagan, a former CME Group executive. Second was the video of Howard Lutnick giving a speech in Madison Square Garden supporting Trump on X. Third was Robinhood jumps into election trading giving users chance to buy Harris or Trump contracts from cnbc. Here are the top three stories from the Lead section of today's jln. The first story is from the Trade the headline Aquis and CBO to form joint venture intent on exploring consolidated Tape bid the exchanges will co own a new Netherlands based company named Simplicity which will seek to leverage the expertise of its founders to develop a best of breed equity ct.
[00:13:06] Pan European Equity Exchanges Aquis Exchange and CBO Global Markets have today set out plans to launch a joint venture that will look to explore making a bid to provide the European consolidated tape named Simplicity. The new venture will be based in the Netherlands and co owned by CBO and Aquis and as equal shareholders. Alister Haynes, chief executive of ACWUS commented, this proposed joint venture would not only represent a cost efficient, robust business model that integrates advanced complementary proprietary technologies, it would also be designed to deliver fair compensation for data contribution, aligning the interest of contributors and consumers. Here's another story, this one from Bloomberg. The headline Dutch regulator seeks better Algo testing to avert market abuse Regulator works with ESMA to improve pre trade controls Follows joint research project with Oxford Man Institute the Dutch Authority for the Financial Markets is working with the European securities and Markets Authority and other supervisors to assess how trading firms can improve algorithm testing to ensure they do not behave in an unintended manner or contribute to disorderly market conditions. The regulator, or afm, has linked up with the University of Oxford to research computer driven trading models and assess market manipulation risks, Robert Grins, a data scientist in the AFM's Multi Asset Surveillance team, said in an interview. Initial work that draws on data from Euronet Amsterdam has looked at how different algorithms respond to various triggers to help supervisors better identify models that might be harmful to market functioning. The findings were published this month.
[00:15:15] And then finally, here's another story from Bloomberg Traders Hunt Profit Playing Warped Election Betting Markets with prediction market odds diverging from traditional polls, bettors are trying to capitalize in the final days before the presidential vote.
[00:15:36] As anxiety and anticipation build ahead of the November 5 presidential election, political betters are setting aside emotion and hunting for ways to profit off the mixed signals being sent by polls and prediction markets. While traditional voter surveys show a toss up rate, prediction markets have swung hard toward Donald Trump in recent days, pushing his odds of winning to 60% or above, giving rise to what look like price anomalies across different websites. That's where bettors want to play.
[00:16:14] We're grateful for your attentive listening to the John Lothian News Daily Update. Please spread the word about our podcast among your friends. 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.
[00:16:34] Your reviews play a crucial role in introducing our content to new listeners. Also, if you haven't subscribed to the daily John Lothian Newsletter, email yet, you can Enjoy a complimentary 90 day trial by visiting john lothianws.com trial. 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.
