THE JOHN LOTHIAN NEWS DAILY UPDATE – 10/30/2020

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

In Scouting the slogan is “do a good turn daily.” I have a request for you to do a good turn today. David Fisher, the former Chicago Board of Trade vice chairman and longtime soybean pit trader is very ill with pancreatic cancer. He is weak, but very strong mentally. He is handling his situation with grace and realism, according to his officemate for more than 30 years, fellow CBOT member Bob Otter.

I would like to ask you to send David an email greeting to LettersforDavid@johnlothian.com. We all need cheering up during this pandemic, but David is facing even greater issues than most and there is nothing better to help lift someone’s spirit than to hear from old friends, colleagues and others sharing a message of care and concern.

Julie Ros of Profit & Loss announced in a letter on their website that P&L is closing as a result of the impact of the global pandemic on their events business. This is a perfect example of the pressures that are on the industry’s media companies. This is another reason to support the JLN MarketsWiki Education GoFundMe campaign to help John Lothian News continue its mission to provide you with news and commentary, and to capture the history of our industry.

Speaking of the JLN MarketsWiki Education GoFundMe campaign, we had a $1000 donation from Nils-Robert Persson, a donation from Leticia Manos and a second donation from Ray McKenzie. Nils-Robert is the former executive chairman of Cinnober who is now doing another fintech startup called Vermiculus Financial Technology. Nils-Robert is a longtime friend of JLN and Cinnober was a loyal sponsor. Leticia Manos is a talented communications and public relations executive with Eurex in Chicago. And Ray McKenzie is a rock and roll star and fruit company executive who has worked for the CME and ICE. He now works for Apple.

Last night I interviewed Andy Tan, Director at Synergy Link Capital, in Singapore over Zoom and conducted an Open Outcry Traders History Project interview. This was my first interview of a Singaporean trader. Andy worked for Merrill Lynch on the trading floor, moved to arb for them when floors closed and then in 2012 became an independent trader.

Forbes has reported that Zoom is worth more than ExxonMobil is now. Let that sink in for a minute about the future of the world.

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

*****

Nasdaq Chief Economist Phil Mackintosh (who is quoted in Suzanne’s election story above) has a blog post of his own on “Election 2020: What to Expect From Markets” complete with graphs on sector performance after the 2016 election, implied volatility around elections, and more. You can read it here.~SR

Revolution Global CEO Mark de Souza has stepped down from his role after four years. He will continue to serve the company as a member of its advisory board, the Chicago-based company said, focusing on financing initiatives, Illinois dispensary expansion and public policy issues. Revolution COO Dusty Shroyer and CFO Tripp Murray will lead the company until a permanent CEO is named. A board member of the national legal cannabis advocacy group, the Marijuana Policy Project, de Souza also served on Illinois Gov. J.B. Pritzker’s transition team for agriculture that oversaw the state’s cannabis policy.~SC

 

First Read

Election 2020: Tight Races Set Stage for Continued Period of Volatility
By Suzanne Cosgrove – John Lothian News

Here’s how the presidential election 2020 is unfolding in its final days: A massive early voter turnout is outpacing that of 2016, an estimated 11 million more Democrats than Republicans have requested mail-in ballots, and both President Donald Trump and former Vice President Joe Biden spent Thursday barnstorming the state of Florida.

“We recognize this is a highly contested race,” said Nasdaq CEO Adena Friedman in a webcast interview on Thursday.

Speaking on a panel on “The Economics of the 2020 Election” sponsored by Nasdaq, Jim O’Sullivan, chief U.S. macro economist at TD Securities, noted the final outcome of the race offers a number of potential pros and cons for the economy.

To read the rest of this story, go here.

++++

FIA-Chicago Fed Panel Addresses the Lack of Diversity in U.S. Financial Markets
By Sarah Rudolph – John Lothian News

The low number of African Americans in high positions in the financial markets is shocking, but not surprising. And not much progress has been made, though not for lack of effort. What does the landscape look like, and what can be done about it?

One big problem is that African Americans are not represented in the agencies that regulate the financial industry. Chris Brummer, a law professor at Georgetown University, researched data on the number of Blacks who have served as federal regulators. He spoke on a panel Thursday on “Diversity in the financial markets” hosted by the FIA and the Chicago Federal Reserve.

“Financial regulation has a direct impact on the lives of African Americans,” Brummer said. “It determines how trillions of dollars in assets are regulated, as well as what companies should disclose, how investors are protected, plain language disclosures, and who gets financial assistance in times of distress.”

To read the rest of this story, go here.

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Nasdaq Chief Economist Phil Mackintosh (who is quoted in Suzanne’s election story above) has a blog post of his own on “Election 2020: What to Expect From Markets” complete with graphs on sector performance after the 2016 election, implied volatility around elections, and more. You can read it here.~SR

Revolution Global CEO Mark de Souza has stepped down from his role after four years. He will continue to serve the company as a member of its advisory board, the Chicago-based company said, focusing on financing initiatives, Illinois dispensary expansion and public policy issues. Revolution COO Dusty Shroyer and CFO Tripp Murray will lead the company until a permanent CEO is named. A board member of the national legal cannabis advocacy group, the Marijuana Policy Project, de Souza also served on Illinois Gov. J.B. Pritzker’s transition team for agriculture that oversaw the state’s cannabis policy.~SC

++++

A Message from Julie Ros, Founder of Profit & Loss
Colin Lambert – Profit & Loss
Dear Readers,
Profit & Loss has weathered many storms over the past 21+ years, including the tech bubble burst in 2001-2002, the depressed market environment following 9-11, and the global financial crisis of 2008-2009, but the current and ongoing global pandemic has caused challenges to our international events business that are outlasting our ability to continue operations.
/bit.ly/2TDzjne

***** It is a sad message. Thank you to Julie, Michelle and Colin for all the great work.~JJL

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Record Planeloads of Live Hogs Flown Into China to Boost Herds
Bloomberg News
China is flying in record numbers of pigs to improve genetics and boost productivity while rapidly rebuilding the nation’s hog population after it was decimated by African swine fever. Some 15,346 live swine worth $32 million arrived by air in the first nine months of the year, customs data show. That’s an all-time high, according to Genesus Inc., an international genetics company. The value jumped from $3 million in all of 2019, $13 million in 2018 and $21 million in 2017, the customs data show. China has also imported a record volume of meat this year to ease pork shortages.
/bloom.bg/3jD9SMV

*****This is proof that pigs can fly!~JJL

++++

Welcome to the October issue of Focus
World Federation of Exchanges
For October’s issue, we are publishing a Special Edition in which we focus on the critical role of one section of our membership: central counterparties (CCP). CCPs are key to systemic stability and the WFE, as the global organisation and voice for the CCP community, is always seeking to deepen the debate and the thinking that surrounds them.
/bit.ly/2TGFgiU

*****Look directly into the lens. Are you getting sleepy?~JJL

++++

Letter from the Co-CEO: What Does the Future Look Like?
Lynette Lim – PhillipCapital
“We think too much and feel too little. More than machinery, we need humanity; more than cleverness, we need kindness and gentleness. Without these qualities, life will be violent and all will be lost.”
– Charlie Chaplin, The Great Dictator
Dear friends,
As election day draws closer in America and collective tension rises, those of us who work in the financial brokerage industry have to anticipate how the markets will behave in order to manage the risk of our customers who trade. It is always prudent to anticipate the worst, the largest possible move in the market, so that we are not caught with our pants down, figuratively speaking. If we expect large moves in the market, then we would take preventive measures such as asking for additional deposits from our customers and/or imposing some limits on their trading, as well as standing by for extra credit from banks.
/bit.ly/3emhCSJ

*****Lynette Lim will be on a panel during EXPO-V that I am moderating about micro contracts.~JJL

++++

Walmart Pulls Guns, Ammo Displays in U.S. Stores, Citing Civil Unrest; Retailer says move is a safety precaution but customers can still purchase firearms and ammunition
Sarah Nassauer – WSJ
Walmart Inc. WMT -0.09% has removed all guns and ammunition from the sales floors of its U.S. stores this week, aiming to head off any potential theft of firearms if stores are broken into amid social unrest. The retail giant, which sells firearms in about half of its 4,700 U.S. stores, said customers can still purchase guns and ammunition upon request even though they are no longer on display.
/on.wsj.com/3ea97tw

*****This is kind of like a curfew. If you have not gotten it done by 10 PM, it’s not going to happen. If you did not buy your guns and ammo until a week before the election, then you had better have a plan B. A good weedwacker can be very helpful.~JJL

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CryptoMarketsWiki Coin of the Week: Maker (MKR)
The security measures of the governance token Maker (MKR), the digital token used by users on the Maker platform to vote on decisions that affect the entire platform, is being called into question again after a user caused a flash crash to manipulate a vote on the platform. The Maker Foundation made a post on Maker’s forums warning users about the issue. Earlier this year, another flaw in the Maker protocol caused users to lose millions of dollars worth of cryptocurrency deposited in the platform.
/bit.ly/3cn9kc8

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Thursday’s Top Three
Our top story Thursday was GOP Sen. Kelly Loeffler: ‘Not familiar’ with Trump’s infamous 2005 ‘Access Hollywood’ tape, from Yahoo! News. I am not familiar with Sen. Loeffler…have we mentioned her in this newsletter before? Second was John Lothian’s remembrance, Peter Wind, Longtime Industry Colleague and Mentor, Passes Away, in John Lothian News. Third was The Guardian’s How does one of the world’s biggest pork firms go bust during a boom?

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