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Category Archives: Commentary

Commentary from the John Lothian News staff and guests editors.

Cultural Differences Standard

After traveling to London and then attending the Swiss Futures & Options Association conference in Interlaken last week, one thing is clear from Europe. They have their attention on the United States and what may be coming from Congress regarding climate change. But what is also apparent from the discussion on the carbon market and sustainable investment is that there is a misunderstanding about what President Obama can do, and what legislators will likely do. Some panalists at Interlaken said it was a good sign that Obama has verbally committed to climate change policy. But what is often misunderstood outside…

Green Exchange – marks a date Standard

In the day after Green Exchange’s subtle move back into the carbon market with an announced three-month fee waiver, we took a look at volume on day one – September 2.The exchange posted volumes of 257 In Delivery Month EUA contracts on September 2 and five RGGI contracts. No volume on SOx and NOx contracts.Meanwhile, Chicago Climate Exchange posted volumes of 23,000 CFI contracts and Chicago Climate Futures Exchange posted volumes of 14,210 RGGI contracts, 1,518 SFI contracts, 200 NFI-A contracts, 5 CCAR-CRT contracts and 40 NFI-OS contracts.This isn’t about pointing a finger at puny volumes by CME Group and…

Guest Commentary on Waxman-Markey Bill by Elliott Piggott, MD Trayport Standard

Smoke Stacks

Guest Commentary By Elliott Piggott, MD Trayport: As climate change moves higher up the political agenda, the announcement of new US legislation such as the Waxman-Markey climate bill demonstrates the US’s increasing progression to support the global carbon markets and reduce emissions. Initially approved in June this year, the Waxman-Markey bill mandates that the US reduce Greenhouse Gas emissions (GHG) 17% below 2005 levels by 2020, as well as set up a national market for pollution permits in 2012. Once officially passed by the US Senate this autumn, the bill will then give emitters the ability to purchase carbon offset…

Carbon fists Standard

Today’s lead story US Congress inquiry reveals fake letters from ‘voters’ opposed to climate bill from the Guardian is not exactly a new story. (It’s a week or so old now.) But it does highlight one important trend and fact that needs to be dealt with by Democrats, Obama Administration and Cap-and-traders if they are serious about climate bill passage by the Senate. There was an interesting battle fought some years ago as the German exchange, Eurex, tried to enter the US with a separate exchange called Eurex US. Eurex US was eventually launched in 2004, with an eye toward…

How Congress has lost its mind Standard

A friend of mine in this space likes to say that “Congress understands cap, but they don’t understand trade.” And after reading today’s top story Goldman Faces Carbon Market Curbs in Senate Proposals from Bloomberg, it’s quite obvious some definitely don’t understand trade – as in trading the markets. The headline is misleading because its not just Goldman (Congress’ favorite profitable punching bag) that would be barred or limited from trading carbon if Maria Cantwell has her way, it would be all financial firms. What Obama and the Treasury Department has proposed in its latest regulatory overhaul is the regulators…

China’s climate dilemma Standard

So the US and China made nice on climate change right? On Tuesday they signed a memorandum of understanding (MOU) that Secretary of State Hillary Clinton says “provides our countries with direction as we work together to support international climate negotiations and accelerate the transition to a low carbon economy.” Great. But then you read further down the Reuters story “U.S. and China sign memorandum on climate change” in today’s Lead Stories and State Department spokesman Ian Kelly says “It is not an agreement per se for each side to commit themselves to some particular target. It sets a structure…

John Lothian July 2009 Testimony Before CFTC Regarding Open Hearings To Discuss Energy Position Limits And Hedge Exemptions Standard

John Lothian

Wednesday, July 29, 2009 Three Lafayette Center 1155 21st Street NW Washington, DC 20581 My name is John J. Lothian and I am here as a participant in, observer of and commentator about the global futures and derivatives markets. I want to thank the Commission for inviting me to testify on the important issues considered in today‘s hearings. I am a commodity trading advisor registered with the National Futures Association, but am better known as the editor and publisher of the John Lothian Newsletter, what many call the most widely read newsletter in the global futures industry. I am also…

Guest Commentary from ELX’s Neal Wolkoff Standard

Neal L. Wolkoff

Guest Commentary from ELX’s Neal Wolkoff: John, ELX Futures, a new electronic futures exchange, launched barely more than a week ago, and yesterday matched well over three percent of US Treasury futures volume. While I appreciate the prominence of being the lead item in your widely read column, there are a few items that I believe need to be clarified. First, intermarket arbitrage is new to the futures industry because markets have consolidated to the point where arbitrage can only be conducted between futures and other financial sectors like cash or securities. However, in equity options and cash equities, a…

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…