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
Congratulations to the CME Group’s Executive Chairman and CEO Terry Duffy and his team on the completion of the migration of BrokerTec to CME’s Globex trading platform. This has been a goal of the industry for a long time and now it is complete.
The LegalEagle Youtube channel has a great explanation of the entire GameStop stock story. It is worth checking out.
This weekend we will be migrating MarketsWiki to a new hosting company featuring a more cloud-like solution. Currently, MarketsWiki is running on a single platform hosted by Codero. We recently moved JohnLothianNews.com to this new hosting company and are very pleased with the results so far.
Two Kansas City Chief players tested positive for coronavirus after having received a haircut from a barber who had the virus. The Super Bowl is this Sunday.
Later this morning we will be publishing a column I wrote about all the ways I have traded futures.
Today we will publish a video for the Path to Electronic Trading series featuring Cboe Executive Chairman and CEO Ed Tilly. The interview was conducted by JLN’s Suzanne Cosgrove. Tomorrow we will be publishing an interview for the Path to Electronic Trading video series featuring John Van Der Bleek, formerly of the CME and CBOT, who led the first overnight desk for Project A at the CBOT and was involved in many of the CBOT’s efforts to improve the efficiency of the trading floor and deploy electronic trading platforms. You will enjoy both videos.
There were no new donations to the JLN MarketsWiki Education GoFundMe campaign yesterday. Support our efforts to preserve industry history by donating to 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
CME Group Completes Migration of BrokerTec Trading Platform to CME Globex
CME Group, the world’s leading and most diverse derivatives marketplace, today announced that BrokerTec, a leading provider of electronic trading platforms and technology services in fixed income markets, has migrated its U.S. Treasuries benchmark trading and U.S. Repo platform to CME Globex. This follows the integration of BrokerTec’s EU government bond and repo markets in January.
*****A dream come true.~JJL
D-Limit: One of These Things is Not Like the Others
Ronan Ryan – IEX
Initial data shows differentiated performance in D-Limit trading
With the non-stop headlines on the growth of off-exchange trading and the record percentage of overall volume on the TRF, displayed on-exchange markets are at an innovation crossroads.
*****I am a fan of D-Limit if you recall.~JJL
Robinhood’s C.E.O. Is in the Hot Seat; Vlad Tenev has incited the fury of the trading app’s fans amid a stock market frenzy. His lack of preparedness on nuts-and-bolts issues was part of a pattern, former employees and analysts said.
Nathaniel Popper, Kellen Browning and Erin Griffith – NY Times
Vlad Tenev, the chief executive of the online brokerage Robinhood, has had practice doing damage control. Last March, he told customers that “we owe it to you to do better” after Robinhood’s app suffered lengthy outages, leaving many people unable to trade.
*****Sometimes founders need to be replaced.~JJL
Big name corporations more likely to commit fraud
Sara Zaske – Washington State University News
Fortune 500 firms with strong growth profiles are more susceptible to “cooking the books” than smaller, struggling companies, according to a recent study published in Justice Quarterly. Researchers from Washington State University, Pennsylvania State University and Miami University examined the characteristics of more than 250 U.S. public corporations that were involved in financial securities fraud identified in Securities and Exchange Commission filings from 2005-2013. They were then compared to a control sample of firms that were not named in SEC fraud filings. Clear trends emerged in the risk of fraud including corporations that were listed in the Fortune 500, traded on the New York Stock Exchange and had strong growth expectations.
*****Smaller companies have fewer books to cook, making it harder to hide the fraudulent feast.~JJL
Tuesday’s Top Three
Our most read story Tuesday was the Financial Times’ Nasdaq agrees to sell US Treasuries trading business to Tradeweb for $190m – which if you say it out loud is a bit of a tongue twister. Also a big loss for Nasdaq on its original eSpeed purchase. Second was Nasdaq’s press release on the same, Nasdaq Agrees to Sell U.S. Fixed Income Business to Tradeweb Markets. Third was Bloomberg’s There’s a Plan to Bring Sports Gambling to the Futures Market.