Episode Transcript
[00:00:06] Speaker A: Welcome to the John Lothian News daily Update podcast for May 15, 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. The Wall Street Journal has a story today about why I wanted to become a reporter. The story is about the late Jim Simons and it is by Gregory Zuckerman entitled how did Jim Simons firm make $100 billion? He told his secrets to our reporter. I figured out one of the best ways to learn how to become a good trader was to be able to ask good traders questions, and one way to do so is to become a news reporter.
[00:00:57] Speaker B: So that is what I did.
[00:00:59] Speaker A: I was also fascinated by the ways markets consumed information and created this thing called price.
Euronext yesterday reported a strong start to 2024 with first quarter revenue and income up 8% to €401.9 million. Non volume related revenue, representing 58% of the total, grew significantly with the notable increases in custody and settlement €67.8 million, up 6% advanced data services €59.4 million, up 5.5% and listing revenue, €57.0 million, up 5.5%. Clearing revenue rose 23.1% to €37 million, driven by expanded european equities and commodities clearing trading. Revenue increased 7.4% to €138.4 million, despite softer cash and derivative trading. Operating expenses decreased by 2%, leading to an adjusted EBITDA of €251.3 million, up 15%. Adjusted net income was €164.2 million, up 11.7%, with reported net income at €139.7 million, up 44.8%. Net debt to EBITDA ratios improved and S and P upgraded Euronext rating to a capital B Capital B Capital B plus positive outlook Euronext has a LinkedIn video you can see with the link in today's newsletter about its first quarter performance. The SEC is seeking candidates to fill.
[00:03:06] Speaker B: Vacancies on its small business capital formation.
[00:03:09] Speaker A: Advisory Committee, which advises on rules and policies for small businesses established by the.
[00:03:16] Speaker B: SEC Small Business Advocate act of 2016. The committee includes leaders, investors and advisors working with early stage and smaller public.
[00:03:26] Speaker A: Companies, including minority and women owned businesses. The committee focuses on capital raising, securities.
[00:03:35] Speaker B: Trading and corporate governance for these companies.
[00:03:38] Speaker A: Interested individuals should email their letter of interest to small businessCc Dot Gov by June 14, 2024.
[00:03:48] Speaker B: Relevant experience includes representing emerging and smaller public companies, professional advising and involvement in.
[00:03:57] Speaker A: Securities markets, ICEs Easter or euro short term rate futures reached 100,000 lots of.
[00:04:10] Speaker B: Open interest for the first time yesterday, becoming the first exchange to do so, beating rival CME Group and Eurex.
[00:04:18] Speaker A: ICE shared on LinkedIn futures and options world reported that ICE now holds a 51% market share in Easter futures, while.
[00:04:29] Speaker B: Eurex holds 26% and CME 23%.
Easter offering can be traded alongside eurybor.
[00:04:39] Speaker A: Futures and options, which is the largest and most liquid pool of euro short term interest rate derivatives globally.
[00:04:47] Speaker B: ICE said Easter options were launched on.
[00:04:51] Speaker A: April 22 to complement the futures trading.
ASIC, the australian market regulator, announced that it welcomed the australian governments move to.
[00:05:02] Speaker B: Advance competition in clearing and settlement.
[00:05:04] Speaker A: The assistant treasurer issued the corporations and.
[00:05:08] Speaker B: Competition Services Instrument 2024, empowering ASIC to create rules for cash, equities, clearing and settlement services. ASIC said it aims to use these new powers promptly to ensure competitive market outcomes, enforcing the 2017 regulatory expectations for ASXS cash equity services. These expectations ensure ASXs responsiveness to user needs and provide transparent, fair and non discriminatory access to its services. ASICs said it plans to consult on draft CS services rules in July.
[00:05:51] Speaker A: Later today in Chicago, I will be.
[00:05:53] Speaker B: Attending a FIA operations members only division.
[00:05:58] Speaker A: Workshop, clearing twenty four seven. The description of the event is trading.
[00:06:04] Speaker B: Hours have been expanding for several decades and now the industry is contemplating extending clearing hours to accommodate weekend trading in certain products.
[00:06:14] Speaker A: This interactive session will cover the practical.
[00:06:18] Speaker B: Implications of clearing 24 hours a day, seven days a week in the current ecosystem. How would 24/7 clearing impact post trade processing, staffing, collateral risk management and banking? Panelists will address new technologies such as tokenization.
[00:06:36] Speaker A: The moderator is Keith Tobalik, vice president.
[00:06:40] Speaker B: Futures and derivative clearing operations, JPMorgan Chase.
[00:06:44] Speaker A: The panelists are Jeff Arnold, managing Director.
[00:06:47] Speaker B: COO, Apien Amro Clearing USA James Dayton.
[00:06:52] Speaker A: Managing Director, Futures Electronic Trading, Wells Fargo Security Linda Haven, BMO Bank North America.
[00:07:00] Speaker B: Joseph McLaughlin, head of Clearing CBO Digital Brian Sayers, executive director, Post trade services and risks CME and Jonathan Schlamp, senior vice president, commodities and global markets, Macquarie Futures USA our most read stories from.
[00:07:18] Speaker A: Our previous edition of JLN options were.
[00:07:21] Speaker B: Memstackmania is hitting the options market too from the Wall Street Journal options show investor calm ahead of CPI data from.
[00:07:31] Speaker A: Market watch hedge funds rush to cover.
[00:07:35] Speaker B: Euro short bets ahead of us inflation from Bloomberg subscribe to the free JLN Options newsletter with the link in today's JLN. Here's another video from our FIA Boca coverage CBO's Adam Inzerillo talks about CBO's data offerings and growth at FIA. Boca Adam Inzerillo, the head of data and access solution at Cibo, spoke to JLN at the FIA International Futures Industry conference in Boca Raton, Florida, in March.
[00:08:10] Speaker A: About his experience with electronic trading products before joining Sibo, the lessons he learned.
[00:08:15] Speaker B: In his first months on the job, and the breadth of services CBO is offering these days in Zurillo talked with John Lothian news as part of the JLN industry Leader video series sponsored by Wedbush. You can watch this video on johnlothianews.com. Heres a story from Crane Chicago business the headline Museum of Science and Industry finally rebrands under Ken Griffin's name the Museum of Science and Industry will be renamed to honor Ken Griffin as originally promised. Five years after the Citadel founder announced he would donate a historic $125 million to the exchange. The cultural institution will be renamed the Kenneth C. Griffin Museum of Science and.
[00:09:08] Speaker A: Industry on May 19, the museum said.
[00:09:11] Speaker B: In a news release. The $125 million gift made way for multiple new exhibits, including the notes to neurons that will be featured in the new Griffin studio digital space.
The gift is being used to support our vision and our future focus of reimagining MSI. It will also bolster our endowment and that will support our long term financial health with the museum to ensure future sustainability, Chevy Humphrey, president and CEO of MSI, said in an interview with Cranes. We're just excited that these new experiences are going to be fresh avenues for us to share science and industry to Chicago and the world. And we could not have done it without Ken Griffins incredible support.
To celebrate the new name and look, the museum will offer free admission on May 19. Humphrey did not disclose the full price, only stating that part of the $125 million went to the rebranding. My comment I think we should just.
[00:10:24] Speaker A: Rebrand Chicago Ken Griffinville and get it over with.
[00:10:28] Speaker B: Maybe that would attract him back to Chicago. I mean Ken Griffinville. Here's another story, this one from the Los Angeles Times. The headline ExxonMobil is suing its shareholders to silence them about global warming. You wouldn't think that ExxonMobil has to worry much about being harried by a couple of shareholder groups owning a few thousand dollars worth of shares between them, not with its $529 billion market value and its stature as the worlds biggest oil company. But then you might not have factored in the companys stature as the worlds biggest corporate bully. In February, ExxonMobil sued the US investment firm Arjuna Capital and Netherlands based green shareholder firm. Follow this to keep a shareholder resolution they sponsored from appearing on the agenda of its May 29 annual meeting, the resolution urged ExxonMobil to work harder to reduce the greenhouse gas emissions of its products. My comment this is not a case of how to make friends and influence people. This is how to make enemies and keep their mouth shut.
Here's another story, this one from ICE data indices.
The headline a surging us dollar presents fresh opportunity.
ICES US dollar index serves as a reliable global benchmark for the greenback.
[00:12:06] Speaker A: The japanese yen has been hitting multi.
[00:12:09] Speaker B: Decade lows against the US dollar, triggering speculation of an intervention and renewing focus on the greenback strength against a wide range of major currencies. For market participants, currency volatility can highlight the need to hedge their positions, take advantage of arbitrage, or promote products which trade on these dynamics.
Ices US Dollar Index is an amazing story. It is a contract started because Paul Tudor Jones wanted to find a way to short the dollar and there were no good alternatives. With the help of the late Joe O'Neill of the New York Cotton Exchange, they created the dollar index. Here's another story, this one from the Financial Times. The headline America is pulling up the drawbridge the nation is growing tired of upholding the economic rules it laid out for the world after 1945. America is in a race with itself to see which party can deglobalize faster. On Tuesday, Joe Biden slapped tariffs on a range of chinese goods, including 100% on electric vehicles. Thats nothing, said Donald Trump, who promised 200% tariffs on chinese cars plus 10% on all imports from everywhere. Biden has more to come. At this rate of bidding, US China decleping will be set in bipartisan stone by November. The choice will be between Biden sealing and orderly divorce, or Trump doing it in chaotic leaps and bounds.
I like the Paul Krugman take on this and the implications cheap chinese goods had on income inequality in the US and thus the political landscape in key locations due to the impact on certain industries. Here are the top three stories from Tuesdays JLN our most clicked item Tuesday was the SECs notice about its conference on emerging trends in asset management, taking place tomorrow, May 16, 2024, at 09:00 a.m. Eastern time. Second was the Wall Street Journal's OpenAI launches voice assistant inspired by Hollywood vision of AI. Third was CBO imposes $170,000 fine on Hilltop securities. From FX News Group here are the top five stories from the lead section of todays JlN. The first story is from the Wall Street Journal. As mentioned earlier, the headline how did Jim Simons firm make $100 billion? He told his secrets to our reporter. The huge gains came both from groundbreaking insights and lots of small innovations. Being way out on Long island didn't hurt, either. How did Jim Simons do it? I spent two years researching a book about Simons and his firm, Renaissance Technologies. I had long conversations with Simons, enduring his chain smoking for hours at a time. I talked to dozens of his executives, researchers, and friends. The response to the book was positive, but the question kept coming. What was really behind perhaps the most successful investment firm of all time? How did Simons and the crew of academics who ran Renaissance's medallion fund produce more than $100 billion in gains and average annual returns of 39% between 1988 and 2018? Those numbers came after the firm's enormous investor fees. They dwarfed the returns of Warren Buffet, George Soros, Stan Druckenmiller, Steve Cohen, and almost everyone else. What was his secret?
Here's another story, this one from Bloomberg. The headline how the Harvard of trading ruined thousands of young people's lives. I am Academy promises a Wall street education, but instead of riches, many of its members have lost everything.
When Patrice Richards entered the Rotterdam arena, pop songs were pumping, strobe lights were blinding, and she could feel God running through her. Shed grown up in a relatively poor and religious Surinese dutch family in Amsterdam, and shed always known shed had a higher purpose. But it wasnt until she discovered I am academy that she'd figured out what that was. Since joining the financial education platform three months earlier, the 26 year old had learned how to trade options, crypto stocks, and foreign currencies, all in the pursuit of getting rich. And she would soon share these lessons with others, along with 15,000 other young IM members from all over Europe. She made the pilgrimage last spring for a three day conference. See Chris Terry, their guru and the chief executive of I am in the flesh.
Here's another story, this one from the Financial Times. The headline derryme now the CFTC wants its piece of the 191 million cowsy scheme. Hefty stuff, even in a bull market.
Check out this CFTC complaint, which just landed in Ft. Alphabell's inbox and instantly triggered eye rolling over America's premier don't forget me regulator.
As alleged in the complaint, Agridime operated an online platform that purportedly allowed customers to buy and sell cattle and pitched victims with the prospect of guaranteed annual rates of return between at least 15 and 20%. As advertised, Agridigms cattle purchases program afforded customers the opportunity to buy and sell cattle without the actual day to day care of the cattle, or as Agardine stated in its solicitation materials, purchasers of livestock would make money raising cattle without having to do all the work.
Here's another story, this one from Bloomberg copper short squeeze in New York prompts rush to send metal to us copper futures in New York rally to a record high after a short squeeze that's prompted a scramble to divert metal in other regions to us shores. The sudden surge, which has seen Comex futures jump by more than 7% this week, has left metal for July delivery to the New York Exchange, trading at a record premium over later months and at unprecedentedly high levels compared with copper on other global commodity exchanges.
Here's another story, this one from the Wall Street Journal the headline Vanguard names former BlackRock executive as CEO Selim Ramji led BlackRock's ETF business and left in January.
Vanguard Group tapped a former BlackRock executive as its next leader, putting an outsider in charge of the asset manager for the first time in its roughly 50 year history. Salim Ramji, who led BlackRock's exchange traded fund and index investing until earlier this year, will start as Vanguard's chief executive in July, the company said late Tuesday. The Wall Street Journal reported earlier that Ramji's appointment was imminent.
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