Episode Transcript
[00:00:00] Foreign welcome to the John Lothian News Daily Update podcast for November 5, 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 we came so very close to hitting our target of 1,000 YouTube subscribers yesterday. Thank you to everyone who subscribed to the John Lothian News YouTube channel, which reached 995 subscribers as of this morning, a net gain of 18 subscribers. As I wrote, we published the interview with Number Go up author Zeke Foux yesterday, which you can see below in Video and story titled the Crypto Skeptic who Went down the Rabbit Hole. The video is published via Vimeo. We also published it to LinkedIn, breaking it into four different pieces. You can see the LinkedIn videos with links in today's newsletter, part one, part two, part three and part four. We also published a video short of the interview with F, which you can see with the link in Today's newsletter. The OCC, in its October 2024 monthly volume report, said it had a total trading volume of 1.12 billion contracts, marking a 13% increase from October 2023. Equity options led this growth with a 39.7% rise totaling 588.2 million contracts, while ET Index options saw declines of 6.3 and 7.9% respectively. Their year to date average daily volumes still showed slight growth with ETF options up by 1.9% and index options up by 9.2%. Futures volumes dropped significantly by 33.1% year over year, but maintained a year to date daily increase of 6.7%. Overall year to date, average daily volume across all products increased by 7.6%. Here are the headlines from in front of FOW's paywall from some recent stories Hong Kong Exchange and clearing to digitize Exchange traded products next year Analysis US Gulf coast adoption accelerates as deliveries outpace Cushing research Broadridge calls for reporting harmonization amid Asian rewrites Interest rates Activity drives broking revenue at tpicap Exclusive Opts hires former HSBC Deutsche Bank Maryland ahead of launch and voluntary carbon market needs robust, consistent standards we are working hard to set up video interviews for FIA Expo. If you have some news you want to elaborate on, if you want to share your thoughts on industry issues, or if you have some interesting stories to share, reach out to me atjohnlothian lothian.com to set up an interview.
[00:03:48] Our Most Read stories from our previous edition of JLN Options OCC contract volume for October 2024 from OCC Thomas Peterfy on ForkasTX building a buy Only market to transform Event Trading and crowd based insights from John Lothian News and T minus one Election Risk Premium Surges in US Elections from cbo.
[00:04:17] 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.
[00:04:29] Here's a sponsored content message from our friends at JPX Together with FIA and FIA Japan, OSE successfully hosted the FIA Tokyo Forum on October 10, 2024 at the Tokyo Stock Exchange. The event welcomed over 220 attendees representing more than 100 companies. The program opened with remarks from Mr. Nisako, Chairman of Sin City Tokyo, and Mr. Yokoyama, President and CEO of OSE. These introductions were followed by two engaging panel discussions and an insightful address by Mr. Ito, Commissioner of the Financial Services Agency. During the panel discussions, industry leaders from global exchanges and brokerages shared their perspectives on the Japanese market and their development plans. They also explored practical applications of OSE's recent innovations in the interest rates market, including the newly launched three month Daytona Futures. Mr. Kazuhisa Kakazaki, executive Officer of OSE Tokam, joined a panel to discuss JPX's product advancements. He highlighted developments such as the three month tona futures, Tocom electricity futures and the revival of the single stock options market. For further details, refer to the following link in today's newsletter.
[00:06:14] Here's that video interview mentioned earlier. The Crypto skeptic who Went down the Rabbit Hole On a crisp autumn morning in Brooklyn, Zeke Faux sat in his home office in front of a Zoom virtual background featuring a mocked up gold cryptocurrency coin with Sam Bankman Fried's profile on it and inscribed with a Latin phrase foulkes described as an Easter egg that means it is worth nothing.
[00:06:47] The Bloomberg investigative reporter had just released the paperback version of his first book number Go Up, a searing expose of the cryptocurrency world that has already made waves in financial circles. A chapter is included in the paperback edition that contains new information since the hardback ED was released just before Bankman Fried went on trial. But Faux's journey into the heart of cryptomania wasn't one he initially sought. You can watch this video on John Lothian news.com and then here's the Thomas Petterfy interview. Thomas Peterfy on ForkaStx building a buy Only Market to Transform Event trading and crowd based insights. Thomas Peterfy, founder of Interactive Brokers, shares insights into his latest venture Forecast acts for an innovative platform designed to create a new market for event based contracts. In an interview with John Lothian, News Forecast X provides traders a unique buy only model where participants take yes or no positions on the probability of future events, challenging traditional speculation while aiming to yield broader societal insights. You can watch this video on john lothianws.com Here's a story from Bloomberg Opinion the headline Pre Bunking is the Best Way to Fight Election Disinformation America's adversaries are preparing to flood social media with fake news through Inauguration Day. Prepare yourself. If you think the public discord over the election will end after election Day, think again. According to an intelligence bulletin declassified in October, US Spies believe that China, Iran and Russia are prepared to exploit opportunities after the polls close. Their focus will be to conduct information operations denigrating US Democracy through Inauguration Day.
[00:09:01] In non bureaucratic speak, that means foreign adversaries are working to stoke division in American society. They want to undermine our confidence in democracy with disinformation. My comment don't expect the baloney to stop.
[00:09:20] Here's another story from Bloomberg. The headline the Happiness Plateau Doesn't Exist. The idea that money can only buy so much happiness isn't supported by the data on wealth, personal well being and overall life satisfaction. The idea that money can't buy you happiness is one of the world's most persistent tropes. King Midas is granted his wish that everything he touches will turn to gold only to starve to death. Jay Gatsby finds that money can't buy him. Daisy's Love Succession proved to be so popular not just because it is so cleverly written, but also because it dwells on the misery of the super rich. The Roy children may live in a world of private planes, luxury yachts and subdued designer clothing, but their personal lives are marinated in toxicity.
[00:10:23] Better to be a happy peasant than Kendall Roy. My comment the opposite of happiness plateau is the misery spiral. Rather than being stationary at one level, one is moving, spiraling down with feelings of escalating dissatisfaction, a sense of powerlessness, decreased coping mechanisms, and finally isolation and withdrawal from social connections and activities. Yep, that would be the misery spiral. On the other hand, if you take the motion out of it, the opposite of the happiness plateau would be the pit of despair. See the movie the Princess Bride for the details. Here are the top three stories from Monday's jln. Our top clicked item Monday was the John Lothian News YouTube channel. Second was the 401k limit increase to 23,500 for 2025. IRA limit remains at 7,000 from the IRS. Third was broker Marsh offers insurance to target fake carbon credits From Bloomberg Here are the top three stories from the lead section of today's jln. The first story is from the Wall Street Journal.
[00:11:46] Russia suspected of plotting to send incendiary devices on U. S bound planes Two devices that ignited in Europe, officials say were part of a covert operation to put them on cargo or passenger aircraft.
[00:12:03] Western security officials say they believe that two incendiary devices shipped via DHL were part of a covert Russian operation that ultimately to start fires aboard cargo or passenger aircraft flying to the US And Canada as Moscow steps up a sabotage campaign against Washington and its allies. The devices ignited at DHL logistics hubs in July, one in Leipzig, Germany and another in Birmingham, England. The explosion set off a multinational race to find the culprits. Now investigators and spy agencies in Europe have figured out how the devices, electric massagers implanted with a magnesium based flammable substance were made and concluded that they were part of a wider Russian plot, according to security officials and people familiar with the probe.
[00:13:07] Here's another story, this one from Bloomberg. The headline Hedge fund basis trade faces scrutiny as regulators mull probe Shadow lenders now hold about half of all financial assets Watchdogs have spent years trying to assess non bank risks. Hedge fund's record bet on U.S. treasuries is facing fresh scrutiny as the world's most powerful financial watchdog mulls a deep dive into the money spinning trade after running into difficulties with a mammoth project launched last year to gather data on the sprawling shadow banking system. The Financial Stability Board is now discussing a pivot to focus on a handful of priority areas, including the so called basis trades, three people with knowledge of the matter said. The potential probe comes as wagers on one of the trades, which sees some of the world's biggest hedge funds try to profit from the tiny price gaps between Treasuries and derivatives known as futures hit US$1.15 trillion recently.
[00:14:23] Here's another story from Bloomberg.
[00:14:26] Australian bourse hampered in plan to list NZ bond futures ASX withdrew the five years ago due to limited liquidity. Banks tend to protect their lucrative swap business. ASX Australia's plan to relist New Zealand government bond futures next year faces major challenges due to concerns about limited liquidity and lack of trading transparency, according to the nation's securities Exchange. The roadblocks mean relisting the contracts in the first half of next year as initially planned is unrealistic and 2025 at this stage is probably quite challenged, said Jennifer Easen, a senior product manager for rates at ASX limited in Sydney.
[00:15:24] Things would need to move and progress in a positive direction very quickly to hit that milestone.
[00:15:34] 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 and leave a review on Apple Podcasts or whatever platform upon which you access this podcast. Your reviews play a crucial role role in introducing our content to new listeners. Also, if you haven't subscribed to the daily John Lothian Newsletter email yet, you can Get a complimentary 90 day trial by visiting johnlothianews.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.
[00:16:31] This podcast has been produced by Andrew Lothian.
