The John Lothian Daily Update is a podcast turning the daily JLN hits and takes comments, our original content and the stories and quips in the top box of First Read into a daily podcast.
Hits & Takes
The Democrats want to impeach President Donald Trump before his term is over, and his replacement on The Apprentice, Arnold Schwarzenegger, posted a viral video comparing the sacking of the Capitol to the Kristallnacht in Germany, based on his experiences growing up in Austria. He also told Mr. Trump he is Terminated.
The Week has a story titled “Trump reportedly told Kelly Loeffler he’d ‘do a number on her’ if she didn’t back Electoral College challenge.” As reported earlier here, she had announced she would object at the Georgia rally Trump spoke at, but then announced she would not.
There was an important lesson taught last week. Don’t commit a crime in a location that has more cameras than Hollywood. Just saying.
Matt Wolfe, an executive director of securities finance at the OCC, is the latest to give to the JLN MarketsWiki Education GoFundMe campaign. Thank you to Matt and all who have given and all who have yet to give. Support our efforts to preserve industry history by supporting our GoFundMe campaign.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
Reminder: Registration is open for the FIA’s webinar, “2020 futures and options trading annual trends,” in which FIA will highlight the main trends in trading activity in 2020 in the global exchange-traded derivatives markets, with category and regional breakdowns as well as exchange and contract rankings. It takes place on January 27 at 10:30am – 11:30am ET. Visit FIA.org to register.~SR
BMV, the Mexican stock exchange, futures market and clearinghouse, announced last week that it is acting on its commitment to support ESG (environmental, social and governmental) initiatives through the Mexican Green Finance Advisory Council. MexDer’s parent organization has committed to designating a percentage of its operating income to promote project financing targeted not only toward efficient natural resource use and reducing carbon usage but also the resilience and sustainability of financial markets. Click on this link to open up a pdf where you can read the full BMV announcement. ~Thom Thompson
JLN Launches The History of Financial Futures Episode: Game Changers, Part II
The creation of Liffe, DTB and Eurex
By John Lothian Productions
Eleven years ago John Lothian News began work on a video series about the history of financial futures. We were motivated to get this history on video because of the death of Jack Wing, the founder of The Chicago Corporation, who was an early supporter and proponent of the financial futures products. We wanted to preserve this history in video format before those that had created financial futures all disappeared.
Too many of the early founders of financial futures are gone. But we did capture some of them, and the work on this series has continued in leaps and spurts. Today we are releasing part two of the episodes titled “Game Changers” before we launch part one, which is still a work in progress.
The series is The History of Financial Futures. The episode title is “Game Changers, Part II.” The series is about the start of the modern era of futures trading, starting with the launch of financial futures at the International Commercial Exchange in New York before the ending of the Bretton Woods system, followed by the launch of the International Monetary Market in Chicago in 1972. The latter is the exchange that ultimately succeeded, and the word of this success was spread around the world.
For the rest of this announcement and to view the video, click HERE.
Industry Leaders: Laura Morrison On Growing the ETP ‘Pie’
Exchange-listed products are relatively new for Cboe Global Markets. Laura Morrison recently sat down with John Lothian News and talked about how she has expanded Cboe’s presence in the area in the last five years and what sets its listing operations apart.
The Spread: It can only go up from here
2020 was a lot of things, most of them pretty bad…but it was a banner year for options traders. And options exchanges!
Why We Are Introducing an Article of Impeachment; One of the authors of the impeachment article against President Trump makes his case.
David N. Cicilline – U.S. representative and a member of the House Judiciary Committee via NY Times
Since his resounding defeat in the presidential election in November, Donald Trump has done everything but concede to the democratic will of the American people. He unleashed an avalanche of lies and baseless claims of fraud — conspiracy theories that filled his supporters with a delusional belief that the election had been stolen from him. He filed a bevy of absurd lawsuits. He attempted to cajole and intimidate officials at all levels of government into subverting the election and keeping him in office. And then, running out of recourse, legitimate and illegitimate, he incited an insurrection against the government and the Constitution that he swore to uphold.
*****History continues to be made. If this occurs, President Trump would be the first president impeached twice.~JJL
Time to stop trading conflicts that cost investors billions; The incoming US administration should end payments for routing customer orders
Carl Levin – FT
With a new administration incoming in Washington, it is time to end a conflicted practice that siphons billions out of US investors’ funds each year. The Securities and Exchange Commission needs to stop brokers from accepting payments for routing their customers’ orders to certain traders and exchanges. It is like paying a hidden, private tax on savings whether someone invests through a large mutual fund or directly through a personal brokerage account.
*****Carl Levin is a former U.S. Senator and chaired the committee on investigations.~JJL
TikTok and Discord Are the New Wall Street Trading Desks; Pandemic has led to surge of day trading, helping push stocks like NIO and Tesla to records amid online buzz
Caitlin McCabe, Gunjan Banerji and Mischa Frankl-Duval – WSJ
A new army of social media-enabled day traders is helping push stocks to records and turning companies into market sensations. As trading by individual investors boomed during the coronavirus pandemic, so has the popularity of online communities where they gather. Platforms including TikTok, Twitter, YouTube, Reddit, Instagram, Facebook and messaging platform Discord have become the new Wall Street trading desks. Individual investors gather to talk about hot stocks like Tesla Inc., boast of gains and commiserate about losses.
*****OK, how many of you have heard of Discord before?~JJL
Friday’s Top Three
Our top story Friday was the Financial Times’ Stacey Cunningham, NYSE president caught up in Sino-US tension, about the NYSE’s flip-flop on delisting three Chinese telecom companies. Second was the second installment of our John Lothian News’ video interview, Bill Brodsky – The Path to Electronic Trading, Part 2. Third was The New York Times’ Wall Street Journal Editorial Urges Trump to Resign to Avoid Impeachment.