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
Thank you today’s backers:
Les Male, Ananda Radhakrishnan, Julie Bauer and a donation in honor of TJC.
Hits & Takes
It is with sadness I report to you the death of longtime SG/Newedge technology executive Ed Netter. Here is the message I received from Leslie Sutphen, a longtime colleague of Netter’s.
Ed was a pioneer in the support of electronic trading and an amazing and tenacious problem solver. He also learned all the intricacies of trader identification, trade reporting, and owner and control identification. He was also a Board Member of the FIA Market Technology Board. He was a very kind and supportive human being and a wonderful colleague. Many of us will miss him! May his memory be a blessing.
The JLN GoFundMe campaign to support MarketsWiki Education and our general operations continues to attract new donations. We are now up to $5,291 of the $300,000 goal. The latest donations were from Les Male, Ananda Radhakrishnan, Julie Bauer and in honor of TJC.
Les Male is the chief executive officer at Dubai Gold & Commodities. Julie Bauer is an executive vice president, government relations and investor education at OCC. Ananda Radhakrishnan is a former CFTC director, Division of Clearing and Risk who is now a vice president of bank derivatives policy and general counsel at ABA Securities Association. The “in honor of TJC” I can only guess is in honor of Thomas J. Cashman, my good friend, former employer and mentor. Thank you to all of them, all who have given and those who have yet to give.
There is a new episode of the STA’s podcast series, STA Trading Views. In the podcast, STA sat down with U.S. Rep. Bill Huizenga of Michigan, Ranking Member of the Subcommittee on Investor Protection, Entrepreneurship and Capital Markets. They cover the coronavirus pandemic, the state of discourse around U.S. politics, Jay Clayton’s priorities at the SEC, entrepreneurship and much more.
Eurex has an hour long webinar on October 20 in partnership with Phillip Capital at 11 AM CDT. The title of the webinar is “Eurex: the gateway to Europe.” Sign up HERE.
The NFA has a new video on their website titled “Who We Are.” In the video you can learn about the NFA and their role in the derivatives markets.
From AFX: The American Financial Exchange (AFX), an electronic exchange for direct lending and borrowing for American banks and financial institutions, announced today that the AFX’s American Interbank Offering Rate (AMERIBOR) has been independently reviewed as of June 30, 2020 and has been reaffirmed to meet all nineteen (19) principles set forth by the International Organization of Securities Commission (IOSCO) for Financial Benchmarks.
Rob Merrilees and Ed Haravon have emerged from the entrepreneurial COVID-19 bunkers and launched a new endeavor, Get Real, which help clients imagine and leverage virtual reality and augmented reality technology to improve the way they work. Merrilees and Haravon are former SPOT Trading executives.
My son Tim’s roommate tested negative for Covid-19. My wife, daughter and I had seen Tim over last weekend, so there was concern we might have been exposed through him. But NO is the answer.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
The FIA released its September 2020 volume highlights, which include: Worldwide volume of exchange-traded derivatives was 4.24 billion contracts in the month of September, up 13.9% from the previous month and up 41.2% from September 2019; On a year-to-date basis, volume in the first nine months of the year was 33.68 billion contracts, up 30.3% from the first nine months of 2019. Total open interest at the end of September was 964.8 million contracts, down 1.6% from the previous month but up 5.4% from a year ago.~SR
When spoofers are sidelined, we all win; Sure, some complain that prosecutors are going too far. But without a foundation of integrity, markets sink into corruption, becoming swindlers’ havens to be avoided by anybody unwilling to play the patsy.
Joe Cahill – Crain’s Chicago Business
Recent victories for federal prosecutors battling illegal trading practices in derivatives markets are important wins for all of us. As my colleague Lynne Marek reported in Crain’s this week, the feds are finally gaining the upper hand in their fight to stamp out “spoofing,” a deceptive tactic that has infected markets over the past decade or so. Spoofers seek to trick honest traders by entering orders they have no intention of fulfilling, quickly removing them when somebody bites, and then capitalizing on the resulting market action.
*****October is spoofing month. We try to trick and treat our way past the dead.~JJL
Free face masks: Hormel Foods giving away Breathable Bacon masks
Kelly Tyko – USA Today
Bacon lovers, there’s a new face mask for you.
Hormel Foods, known for its Black Label Bacon, announced the launch of “Breathable Bacon,” what it calls “a revolutionary face mask featuring the latest in pork-scented technology.”
*****That’s one way to get people to want to wear masks, I guess.~MR
As Virus Spread, Reports of Trump Administration’s Private Briefings Fueled Sell-Off; A hedge fund consultant’s summary of private presentations by White House economic advisers fanned investor worries.
Kate Kelly and Mark Mazzetti – NY Times
On the afternoon of Feb. 24, President Trump declared on Twitter that the coronavirus was “very much under control” in the United States, one of numerous rosy statements that he and his advisers made at the time about the worsening epidemic. He even added an observation for investors: “Stock market starting to look very good to me!”
*****Maybe the definition of insider trading needs to be expanded.~JJL
Get Real Launches New Advisory Firm To Help Clients Imagine And Leverage Virtual Reality And Augmented Reality Technology To Improve The Way They Work; Get Real works with clients to establish scalable and successful VR/AR strategies and programs to enable companies and organizations to more effectively train, collaborate, market, visualize data, gather, educate, and raise money
Get Real, a Virtual Reality and Augmented Reality (VR/AR) advisory firm, publicly launched today to help businesses and not for profits implement VR and AR technologies that dramatically improve and scale their organizations. Clients will benefit from Get Real’s team of professionals that combine several decades of experience in leveraging emerging technology and integrated platforms to solve real-world business challenges and create sustainable competitive advantages.
****We will be looking into this new reality.~JJL
Wednesday’s Top Three
Our top story Wednesday was Crain’s Chicago’s One of Chicago’s biggest high-speed trading firms makes a surprising move, about DRW Execution Services applying to become a clearing member at CME Group. Second was Jefferies puts maximum exposure to loss due to involvement with FXCM at $136.8m from fxnewsgroup. Third was John Lothian’s Joe Sullivan’s Influence and Success, from JLN.