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Author Archives: John Lothian

About Author

Lothian is executive chairman and CEO of John J. Lothian & Co. and editor of the John Lothian Newsletter. He publishes,,, and three industry newsletters.

Hearing is Believing Standard

John Lothian

Yesterday’s CFTC hearings on metals markets and position limits left me nonplussed.  Why were we there?  I heard no compelling argument for why there needed to be position limits.  Commissioner Chilton made some reference to protecting consumers.  That sounds to me a little like a conspiracy to keep metals prices low.  Forgive me, if conspiracy theories are contagious, I may have caught something yesterday. I did greatly appreciate the opportunity to testify at the hearing.  Chairman Gensler again had difficulty with my name, but was quickly prompted and got it right.  Commissioner Dunn (with 2 Ns), told the story about…

Song? A Golden Voice Standard

John Lothian

In light of my CFTC metals testimony yesterday and with a wink to country music artist Tim McGraw, here are the lyrics of a song I call “Golden Voice”: Fort Knox Stores it King Midas Touched it The Magi Presented it Thomas More made fun of it Skeptics bit it Alchemists tried to make it The Forty-Niners Rushed it

The Media Challenge of 2010 Standard

Back in 2007 when we decided to build a wiki I was not sure what the future of journalism was going to look like.  Today, with many newspapers around the U.S. in bankruptcy, others being sold and magazines dropping like flies, it was clear disruptive change was running rampant. To put it in market terms, newspapers were in the open outrcy business in a quickly moving electronic trading era and did not know what to do about it.  I thought new media company and product models were called for and building MarketsWiki was our first step towards creating one. Today…

Gold: Deliver Me This Standard

John Lothian

There is a problem in the gold market. The problem was outlined yesterday in a Wall Street Journal story about how HSBC was getting rid of retail clients and their small holdings of gold. Given the interest in the precious yellow metal, HSBC figures it can make more money dealing with bigger clients. The problem is actually not new, but it makes a good story. As a futures broker, I have and have had clients who want to take delivery of gold. Before gold took off on this rally, not too many brokers really wanted to deal with this kind of…

Boy Scout Popcorn Sale Standard

As many of you know my sons Timothy and Robert and I are deeply involved in Cub Scouts and Boy Scouts. Every year to support the activities of the Pack, Troop and boys, the boys have sold popcorn to fund their activities. With my help, they are asking you again for you support. While there was no pie throwing at the FIA Expo this year, there is a good chance I could again be the target of pies with your support of Tim’s popcorn sales. You see, this past year I have become the Scoutmaster of Tim’s troop. The good…

Chilton Calls for Lower Manipulation Standard in Commodity Cases Standard

John Lothian

“The time has come to ease the burden on our prosecutors, and to better protect consumers and markets” CFTC Commissioner Bart Chilton In a speech before the Institutional Investors Carbon Forum here today, Commissioner Bart Chilton of the Commodity Futures Trading Commission called for a unprecedented change in the legal standard required to prove manipulation cases in commodity futures cases. Chilton, citing the high burdens on prosecutors and the resulting dismal record of successful manipulation cases, called for a shift to an “easier to prove” legal standard. In support of his position, Chilton cited the fact that, in its 35-year…

Gold and Silver Battle Comes to Chicago Standard

John Lothian

Price Group Seminar with the CBOT on Launch of Electronically Traded Full-Sized Gold and Silver Contracts Seminar held in October of 2006, introducing new electronically traded gold and silver futures at the CBOTIntroduction by: Bernard Dan, CEO of the CBOT Speech by John J. Lothian, President of the Electronic Trading Division of The Price Futures Group, Inc. Thank you Bernie for the kind introduction. Before I get into trouble, let me start with a disclosure: The opinions I will be expressing are strictly those of John Lothian and not necessarily of The Price Futures Group, Inc. or its management. On…

Open Letter to Congress Regarding Speculation Standard

John Lothian

When futures prices go up, they are advertising for selling. When prices go down, they are advertising for buying. With futures prices going up for crude oil and many other commodities, a truth has emerged in the cash markets that we have not grown our farming, drilling, mining or processing capacity to meet the increasing demand of a developing global economy. High commodity prices are sending an important message. We need to listen to that message and respond. We need to respond to higher prices with more selling. We need to find a way to meet the growing global demand…

Who is Murray Borowitz? Standard

By John J. Lothian Murray Borowitz independently thought up the idea and helped create the veryfirst financial futures contracts at the International Commerce Exchangeback in 1970 with the introduction of foreign exchange futures contracts.That was two years before foreign currency futures were launched andsuccessfully developed at the Chicago Mercantile Exchange. Murray was nevergiven a title of honor as the “founder” of financial futures, like LeoMelamed, or the “father” of financial futures like Dr. Richard Sandor.However, given Murray’s roots in the trucking business and his role inindependently coming up with the idea of financial futures contracts onforeign exchange (and on the…