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
John Lothian & JLN Staff
The New York Times dropped a bombshell of a story about President Donald Trump’s financial and tax-paying history on Sunday. One can only guess the impact this news will have on the upcoming Presidential election, but one can now see why President Trump so desperately wanted to keep his taxes private.
From a reader: “Exchange traded derivatives educator to thousands of people, Kevin Baldwin passed away yesterday after complications of a long illness. Kevin had taught and traveled the world for over 20 years at Refco, the NFA, IFM and OCC. He also peppered his career as an MD of an innovative IB in NYC.”
A long time reader with a history of working for banks reached out to me about our new video series, The Path to Electronic Trading. He helped deploy several of the leading platforms for electronic trading. This will be a great addition to the series. If you have a story of how you played a part in the path to electronic trading, please contact me.
Brigitte Trafford has joined LSEG as chief communications and marketing officer.
My camping trip with my wife Cheryl has been extended by a day, and we are still in Southern Illinois in the Shawnee National Forest. She has enjoyed the camping experience, which is good news. She has the advantage of having a former Scoutmaster as a husband who has been on more than 100 Scout camping trips.
Have a great day and stay safe and treat people the same way you want to be treated: with respect, equality and justice.~JJL
FIA President and CEO Walt Lukken made the following statement in reaction to the EC and ESMA decisions to formally grant temporary equivalence and recognition for clearinghouses based in the UK, which allow them to continue to provide clearing services in the EU at the end of the transition period between the EU and the UK:
“Today’s decision by ESMA on the recognition of UK CCPs, combined with the European Commission’s adoption of time-limited equivalence, ensures financial stability, operational continuity and market access for customers. During these uncertain times, it is imperative that businesses have access to clearinghouses and the risk mitigating services they provide. FIA thanks the leadership shown by EC Executive Vice-President Valdis Dombrovskis and ESMA Chairman Steven Maijoor in making these important determinations.”~SR
The STA’s 2020 Market Structure Virtual Conference kicks off a busy fall conference season next week on October 7 and 8. Speakers include Rep. Bill Huizenga of Michigan, Dan Gallagher, chief legal officer at Robinhood, Ed Tilly, chairman and CEO of Cboe Global Markets, and others. More details are here. ~SC
Cryptocurrency DeFi trading platforms are getting big, especially Uniswap, which now has more than $2 billion worth of digital assets locked in its protocol – the first DeFi platform to reach this milestone. Here is an explanation of how the platform works.~MR
DOJ Obtains Mixed Verdicts in Spoofing Case
Thom Thompson – John Lothian News
A COVID-19 depleted jury returned unanimous verdicts for each of the 17 counts in the criminal spoofing case brought against two former Deutsche Bank traders, James Vorley and Cedric Chanu. The decisions by the eleven jurors were announced late on Friday afternoon at the Dirksen Courthouse on South Dearborn Street in Chicago.
The charges stemmed from illicit trading activities that occurred between 2008 and 2013. The two traders worked together on the precious metals futures desk in London until Chanu moved to the Singapore office, where he served in the same role before leaving the bank in 2013.
Vorley was found guilty on three of nine charges against him. Chanu was found guilty on seven of eleven charges. They were charged with wire fraud and conspiracy to commit wire fraud. Deutsche Bank earlier agreed to $30 million to settle related charges with the CFTC.
To read the rest of this commentary, go HERE.
The Spread: This Is How It’s Done
This week on The Spread: record high $1 billion worth of bitcoin options expire, the OCC publishes best practices and a plan for the future, and more.
Wall Street is shunning Trump. Campaign donations to Biden are five times larger
Matt Egan – CNN
President Trump is promising four more years of low taxes, light regulation and a laser-focus on the stock market. Yet professionals on Wall Street are shunning Trump and funneling staggering amounts of money to his opponent.
The securities and investment industry donated just $10.5 million to Trump’s presidential campaign and outside groups aligned with it, according to a new tally by OpenSecrets. It has sent nearly five times as much cash, $51.1 million, to Democratic presidential nominee Joe Biden.
*****Follow the money.~JJL
Time to lay a LaSalle tax to rest (opinion)
Crain’s Editorial Board
New Jersey’s proposed tax on financial exchange transactions would likely send New York-based Nasdaq’s massive data center business packing from the Garden State. There are lessons for us here. We can only hope that Chicago aldermen have the week of Oct. 26 circled on their calendars. They might even want to be on hand that week to welcome part of the Nasdaq exchange business that is expected to come to town from the East Coast. That is, if they can find any outward sign of it.
*****As long as there are elections to run in, there will be proposals to tax the markets. There is too much campaign cash to extort by legal means.~JJL
Every Day-Trader Dollar Is Worth Five in a New Theory on Stocks
Sam Potter – Bloomberg
Day traders claiming bragging rights for this year’s $9 trillion U.S. equity rebound can find some supporting evidence in the latest research.
Even as retail trading has grown to represent 20% of daily volume, Wall Street has struggled to figure out how much this modest-sized contingent actually influences prices. After all, the market is teeming with algorithmic funds, long-only managers and more. But a fresh way to understand stock fluctuations via academics at Harvard University and the University of Chicago makes the effort a little easier.
*****Dumb money can be worth a lot.~JJL
In Isolating Times, Can Robo-Pets Provide Comfort?
Paula Span – NY Times
When Linda Spangler asked her mother, in a video chat, what she would like as gift for her 92nd birthday, the response came promptly.
“I’d like a dog,” Charlene Spangler said. “Is Wolfgang dead?” Wolfgang, a family dachshund, had indeed died long ago; so had all his successors. Ms. Spangler, who lives in a dementia care facility in Oakland, Calif., has trouble recalling such history.
*****You still have to walk it or it will leave little batteries on the floor. ~JB
Friday’s Top Three
Our top story Friday was Crain’s Chicago Business’s CME changes rules to smooth out trading. Second was Matt Gaetz accuses GOP’s Kelly Loeffler of bribing Trump with $50 million to push out her rival, from Slate via Yahoo News. Third was the Financial Times’s The prop trading that got away.