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Category Archives: John Lothian Newsletter

The John Lothian Newsletter provides news and commentary about the global exchange traded derivatives, securities, environmental and related OTC markets. The daily email intelligence briefing and companion blog are edited by and .

CME spooks investors with warning on market data; How Trump and Brexit Could Change Global Bank Rules; Calypso and R3 partner for blockchain trade matching Standard

First Read D is Data: And That Might Be The Future Jim Kharouf, John Lothian and Spencer Doar – JLN The sold-out FinTech Exchange conference, hosted by Barchart, was largely about data – what to do with data, how exchanges are capturing new data and how to trade it. That, on its surface, isn’t particularly new. But the infrastructure to capture all kinds of data is now developed. The CME Group’s Julie Armstrong Menacho colorfully outlined how the exchange has migrated all of its historical data onto the cloud, giving customers greater access to it, along with a growing list…

Corporate bond trading at MarketAxess reaches record high; ICE says being asked to shift operations from London to continent; SEC working ‘diligently’ on plan to test lower exchange fees Standard

First Read Did you know? Jim Kharouf & Spencer Doar – JLN Moscow, OneChicago, MexDer, Fear Gauge and Trump Street with an Irish twist. No, they are not connected. One of the interesting things about updating annual volume figures on our MarketsWiki site is the snapshot of how a particular exchange has been doing over a number of years. The FIA Annual Volume Survey shows a couple of unusual suspects in the top 5 in 2016 with the National Stock Exchange of India coming in second and the Moscow Exchange at number four in terms of derivatives volumes. At the…

LSE brushes off Deutsche Boerse blues with ‘strong start’; Acquisitions help Nasdaq beat profit estimates; Brokers “must specialise in research or execution” post-MiFID II Standard

First Read America’s Rich Get Richer and the Poor Get Replaced by Robots Vincent Del Giudice and Wei Lu – Bloomberg Gap widens as automation takes over more low-skill jobs; San Francisco, San Jose lead metro areas with greatest change America’s working class is falling further behind. The rich-poor gap — the difference in annual income between households in the top 20 percent and those in the bottom 20 percent — ballooned by $29,200 to $189,600 between 2010 and 2015, based on Bloomberg calculations using U.S. Census Bureau data. /goo.gl/Naujj4 ***** Robin Hood would definitely have a problem with robots….

Wikipedia founder Jimmy Wales launches Wikitribune; European Banks Seen Losing More Share Amid Bond Trading Upturn; LME launches discussion paper on market structure Standard

First Read Lack of Understanding around Disruptive Technologies Presents Opportunity for Risk Professionals Business Wire Risk professionals have an opportunity to close the gap when it comes to understanding and managing rapidly advancing disruptive technology risks, according to a new report published jointly today by Marsh, a leading insurance broker and risk advisor, and RIMS, the risk management society. Doing so, will increasingly require risk managers to play a leading role as their organizations address complex challenges and opportunities in this environment. /goo.gl/z0UAn5 ****** Managing this risk means more than just saying “no”. ++++ Want high-quality journalism? Try paying for…

Here’s What Analysts Are Saying About the First Round of French Elections; Charts Show Traders Writing Down Chances of a Le Pen Presidency; OCC seeks leverage ratio relief as liquidity shrinks Standard

First Read The future of futures markets: Exchanges looking to fail fast By Jim Kharouf, JLN Andreas Preuss, deputy CEO, Deutsche Boerse had a show stopper. At the IOMA: World Federation Exchanges conference in Frankfurt on Friday, he said his exchange will have to speed up its business processes exponentially in the next two to three years in order to thrive. Implementing products and services from beginning to release will go from today’s 18 months to 4 days. Yes, you read that correctly. And no, no one in the audience was laughing. “The old way was seven months of iterations…

HKEX and LME Announce New LME Chief Executive and Leadership Structure; Deutsche Bank Is First Bank Busted for Breaking Volcker Rule; Deutsche Boerse Boss Admits Mistakes in Failed LSE Deal Standard

First Read Bits & Pieces By John J. Lothian David Setters is turning 60 this weekend and of course some friends are gathering to celebrate this happy occasion. What they are also doing is giving gifts of donations to support MND research, the disease that is afflicting David. Would you help David celebrate birthday with a gift to the MND Association? David and his friends have raised £47,725.50 to date through various activities and fundraisers. How about we help David get that amount to £60K? Congratulations to Matt Chamberlain on being named CEO of the London Metal Exchange. I can…

ETFs Create Stock Markets That Are Both Mindless and Too Expensive, Study Says; Equity derivatives no longer dominate derivatives trade; One Very Big Strike Against Active Management Standard

First Read Bits & Pieces By John J. Lothian Healing wishes are in order for Cinnober Executive Chairman Nils-Robert Persson, who joined the club by undergoing knee replacement surgery. No word on whether he used a Nasdaq listed company’s joint hardware for the surgery. My presentation and panel for the Chicago Civic Federation at the Federal Reserve went well yesterday, though I could have been a lot sharper. The feedback was good, but my own grading was not high for my performance. I did learn a lot about government bankruptcy and the challenges faced by the City of Chicago and…

In rare fumble, Goldman stuns Wall Street with weak trading; Markets Start to Ponder the $13 Trillion Gorilla in the Room; Goldman, BofA Cash In on a Leveraged-Loan Frenzy Like No Other Standard

First Read Steve Ballmer Serves Up a Fascinating Data Trove Andrew Ross Sorkin- NY Times On Tuesday, Mr. Ballmer plans to make public a database and a report that he and a small army of economists, professors and other professionals have been assembling as part of a stealth start-up over the last three years called USAFacts. The database is perhaps the first nonpartisan effort to create a fully integrated look at revenue and spending across federal, state and local governments. jlne.ws/2oSwXT9 ****JB: It is a pretty slick website. Although there are still gaps to be finished it is well worth…

FlexTrade unveils augmented reality trading technology; M&A playbook – how to get the EU to approve a takeover; U.K.’s Theresa May Calls Early Election, Seeking Brexit Leverage Standard

First Read Bits & Pieces By John J. Lothian Tomorrow I participate in a panel discussion at the Chicago Federal Reserve in a program put on by the Chicago Civic Federation. I will be talking about the history of this industry and its impact on jobs. I will also be sharing some of my thoughts on the importance of STEM for Chicago financial markets and the rest of the economy. I believe I have the right audience to share some of my ideas for making Chicago the STEM capital of the world. The title of the program is the uplifting…