John Lothian

John Lothian

Executive Chairman and CEO


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

JLN Staff

New contributors to the JLN MarketsWiki Education GoFundMe campaign include Chris McNulty. McNulty, Sr. is a managing director and COO at Geneva Trading. Thank you to all who have given, and all who have yet to give. You can help us preserve the history of our industry by supporting this fundraising campaign.

FTSE Russell has a webinar on Thursday, October 22 at 12 PM ET about “What’s been driving US equity markets outperformance?” You can register HERE.

Reminder, the webinar with Quantitative Brokers and Eurex on “Transaction Cost Model Market liquidity impacted across European Interest Rate Futures,” is on Wednesday, October 21st at 11:30 EST. Register HERE.

One more note on the passing of Ross Prio, III. His family was asking for donations to the William Guy Forbeck Research Foundation or the American Heart Association. Here is the story on the Forbeck foundation. In 1983, at the age of 10, William (Billy) Guy Forbeck was diagnosed with neuroblastoma, a rare childhood cancer that affects only 650 children a year. Billy died thirteen months later. HIs parents, George and Jennifer Forbeck, established the foundation in his memory. George Forbeck was a longtime member of the Chicago Board of Trade and a large and influential corn pit broker. The foundation promotes advances in the field of oncology, particularly pediatric oncology, by shortening the cancer research timetable. This is just another example of the good done in the world by someone from the world of futures.

Last week the Wall Street Journal had a story about CBOE founder Joseph Sullivan III which made reference to a plywood contract at the CBOT and said the contract flopped. According to a paper written by then CBOT chief economist Richard Sandor, NYMEX actually listed an unsuccessful plywood contract in 1969. It traded 5299 contracts its first year. At the Chicago Board of Trade, interest in developing a plywood contract went as far back as 1957. A newly hired researcher in what was to become the planning department researched the plywood market and delivered an extensive report in January of 1969. The CBOT members voted 514 to 25 on July 29, 1969 to approve trading in plywood futures. After some revisions to the contract specifications, plywood futures started trading on December 1, 1969. The plywood contract traded 394 contracts in 1969 and 47,426 in 1970. There were more than 1000 contracts settled by delivery in 1970. The paper by Sandor was published in the Journal of Law and Economics in April of 1973 as part of the University of Chicago. I would call that a successful contract, though it ultimately did not survive. It actually survived longer as the basis of an NFA Series 3 question. I remember the contract specifications were required to answer a question even though in 1985 the contract had not traded for several years.

The Chicago Board of Trade Clearing Corp. Foundation has pledged $25,000 to the LaSalle Street Trading Tech Awards fundraising event. This is the last year of the foundation, so this donation is especially precious to the Boy Scouts. Thank you to all the trustees for your unwavering support of the Boy Scouts of the Pathway to Adventure Council of the Boy Scouts of America, especially David Johnson, who has been an especially generous trustee. The LaSalle Street Trading Tech Awards event will be virtual this year and held on December 3. Pat Kenny of CQG is this year’s chairperson.

Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL


A reminder: The Annual Conference on Futures and Derivatives will be held today, October 20, at 1 p.m. Chicago time. Sponsored by Thompson Coburn and Exchange Analytics, the free online webinar will address the current state of industry regulation and enforcement. Speakers include James M. McDonald, the former director of enforcement for the CFTC, as well as ex-federal prosecutor and Thompson Coburn partner Renato Mariotti. To register and for more information, go HERE. ~SC


First Read

Money Laundering Detectives Have Been Out at the Pub; Australian regulators got caught up monitoring nickel-and-dime businesses for far too long. The Crown casino affair shows things are starting to change.
David Fickling – Bloomberg
Why did it take media reporting to get Australia’s money laundering investigators to start looking into casino operator Crown Resorts Ltd.? Shares in the gambling company previously controlled by billionaire James Packer slumped 8.2% Monday after it said the country’s financial-crimes regulator Austrac had started a probe into the handling of “high risk and politically exposed” individuals at its Melbourne casino. The investigation started two months after Nine Entertainment Co. newspapers published a series of articles about the activities of high-rolling Chinese gamblers at Crown’s properties.

*****What you catch all depends on the size of the hook you are using.~JJL


Cryptographers Are Always Going to Be ‘One Step Ahead’ of Regulators: Monero’s Spagni
Omkar Godbole – Coindesk
While regulators are trying to restrict privacy in crypto, their efforts may be futile, according to privacy-centric protocol Monero’s maintainer, Riccardo “Fluffypony” Spagni.

*****Funny, criminals say the same thing.~JJL


Economist Found $16 Trillion When She Tallied Cost of Racial Bias; Dana Peterson, who was a Citigroup global economist, recalled her own experiences of bigotry while researching how gaps between Black and White Americans eat into economic output.
Saijel Kishan – Bloomberg
As protests against racial injustice erupted across the U.S. in late May, an economist on Wall Street set aside her usual work of analyzing monetary policy and all things macro to try her hand at something few in her field have attempted: quantifying the cost of racism to the world’s largest economy.

******Discrimination, no matter who it is against, holds back economic growth. We reduce our human potential by succumbing to stupidity.~JJL


Monday’s Top Three
We went from Chicago to London in our top three stories Monday. First was Chicago is the ‘rattiest city’ in America for the sixth year in a row, from CNN. Second was Citadel Securities sues SEC, from Crain’s Chicago Business. Third was Bloomberg’s Trading Ring That Survived Two World Wars May Succumb to a Virus, about the “iconic” London Metal Exchange trading ring.

John Lothian Newsletter

Today’s Newsletter

Crypto Nomads: Surfing the World for Risk and Profit

Crypto Nomads: Surfing the World for Risk and Profit

First Read $51,906/$300,000 (17.3%) ++++ Hits & Takes John Lothian & JLN Staff The STA is holding the 88th Annual Market Structure Conference in person on October 6-8 at the JW Marriott in Washington, DC with the title "The Great Return." That is a very good...

We visit more than 100 websites daily for financial news (Would YOU do that?)

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Ed Tilly: Opportunities at Cboe Global Markets – MWE World of Opportunity

Ed Tilly: Opportunities at Cboe Global Markets – MWE World of Opportunity

Cboe Global Markets Chairman, President and Chief Executive Officer Ed Tilly sat down with John Lothian News over Zoom for the MarketsWiki Education World of Opportunity series to discuss current opportunities at the Cboe as the exchange operator continues to expand globally. He also talked about how Cboe is responding to increased retail investor demand. He noted opportunities are still available on the trading floor and mused about what he would do if he were starting his career today.

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