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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 .

US blocks Chinese-led takeover of Chicago exchange; This Short Seller Pressed ‘Tweet.’ Then the FBI Showed Up; Standard

First Read Hits & Takes JLN Staff Thursday’s near half marathon (almost 13.1 hours), CryptoCon 2018 event by FinTank was a smashing success by all accounts with coverage of everything from initial coin offerings to crypto markets from several different vantage points – lawyers, traders, brokers and exchanges. Well done, FinTank. You will see more coverage from the event below and in the coming days.~JK Wednesday’s Technology Advisory Committee of the CFTC fell on Valentines Day, which was also Ash Wednesday. Each member of the TAC was given a cupcake at their seat. No one was brave enough to eat…

Should Congress Create a Crypto-Cop?; The New Wizards of Wall Street; IRS to Ban Hedge-Fund Tax Dodge Standard

First Read Hits & Takes JLN Staff The CFTC’s Technology Advisory Committee showed me a few things yesterday. One, the CFTC Commissioners seem to like and respect each other and get along. That has not always been the case. Two, there is a lot of work to be done on crypto-assets regulation. Three is that there is a tremendous spirit of cooperation in the industry to figure all this out. I learned from an AI expert that AI will take over the world. I learned from a cyber-security expert that I am not paranoid enough. I saw the CME Group’s…

A bit of fear is good for markets; FIA seeks talks with Indian exchanges; Nasdaq/OPCOM New Tech Standard

First Read Hits & Takes JLN Staff See the Spencer Doar commentary below about the VIX manipulation letter. Spencer methodically and politely shreds the letter writer’s argument and credibility.~JJL Here is a list of those countries who have won medals at the winter Olympics so far, and also a complete list of the countries competing.~JJL Tomorrow is the Fintank CryptoCon 2018 event in Chicago. I will be on a panel late in the day, moderated by the one and only Chuck Mackie.~JJL Simon Barnby, formerly of Fidessa, has written a commentary on LinkedIn titled “CMOaaS – proven marketing skills, as…

VIX Manipulation Costs Investors Billions, Whistle-Blower Says; High-Speed Traders Profit From Return of Loophole at CME; Tighter monitoring for computer trading demanded Standard

First Read Hits & Takes JLN Staff The SEC’s 2019 budget request of $1.658 billion is a 3.5 percent increase over 2018. The majority of that extra funding, $45 million, would go to “technology enhancements to support the agency’s cybersecurity capabilities, risk and data analysis, enforcement and examinations, and automation of business processes.”~SD The CFTC’s budget request of $281.5 million for fiscal year 2019 would support 716 full time employees. CFTC Commission Brian Quintenz pointed out that in FY 2016, the agency had 714 full time employees, 689 in 2017 and 670 this year.~JK Economist/Stanford professor/auction theorist Paul Milgrom received…

Insider trading has been rife on Wall Street, academics conclude; Singapore Bourse Seeks to Defuse Tensions With Indian Counterpart; Booming Demand for Clearing Options, Futures Contracts Fuels OCC’s Growth Standard

First Read Hits & Takes JLN Staff The National Stock Exchange of India will end its licensing arrangements with SGX, CME Group, Taiwan Futures Exchange and Osaka Securities Exchange, according to Bloomberg. Given the ongoing limited access to the Indian market, this can’t be good for NSE, even with a new tax-free trade zone. ~JK ICE is set to relaunch the National Stock Exchange, purchased last year, as NYSE National, a maker-taker pricing model.~JK Cliff Histed, a partner at K&L Gates LLP will be moderating the Enforcement Actions panel at the ABA’s “2018 Blockchain Technology, Digital Currency, and ICO National…

Map to the Volatility Underworld; Nasdaq Moves to Midtown; Crypto “Ponzi” Schemes? Standard

First Read Hits & Takes JLN Staff John Lothian News is pleased to welcome Chuck Mackie as a contributing editor. Chuck will be helping us with event coverage and a yet to be disclosed project. Stay tuned. Welcome, Chuck!~JJL EEX, the Eurex power and commodities exchange, is looking at blockchain for its spot and clearing businesses, including a deal with LO3 Energy, a US-based energy-tech company.~JK Boatloads of content in yesterday’s JLN Options newsletter. If you’re not getting it, feel free to sign up, because, well, it’s free to sign up.~SD JLN updated the VIX page in Marketswiki yesterday. The…

Cboe says Vix products not to blame; Credit Suisse liquidates vol fund; The market is not the economy Standard

First Read Hits & Takes JLN Staff Electronic Interest Rate options ADV reached a record 1.43 million in January, including a single-day record on January 18th in which 1.3 million Eurodollar options traded on CME Globex, surpassing the daily pit volume.~JJL SGX FX futures volume hit a new record of $65 billion in January with ADV of $3 billion.~JK In light of all the VIX ETP drama, which was covered in yesterday’s Options newsletter, check out our blog post Vol-cano Erupts – How’s Seth Golden Doing? It was a response to the seeming surprise amongst pundits about how volatility products…

Bitcoin tumble; CurveGlobal readies fixed income push; Market rout; Robo-advisers crash Standard

First Read Hits & Takes JLN Staff ICE’s NYSE FANG+ futures had record volumes on Friday last week with 7,884 contracts trading. That was one of three new record trading days last week, and average daily volume for the week was 3,278.~JJL Yesterday was the biggest one-day move for the VIX in percentage terms, up 115.6 percent.~SD Mark your compliance calendar for May 11! That’s the date on which compliance with new FinCEN Anti-Money Laundering rules (published May 11, 2016) is required. Courtesy of our friends at Exchange Analytics, who offer an AML course and more.~JJL CurveGlobal raised another £20…

Finance chiefs warn on Big Tech; Trading venues buzzing; China to stamp out cryptocurrency trading Standard

First Read Hits & Takes JLN Staff Richard Sandor has a new book coming out, “Electronic Trading & Blockchain: Yesterday, Today and Tomorrow.” The book tells the story of his experience leading the first project to design and establish an electronic trading platform and for-profit exchange when he taught at Berkeley in the late 1960s. Included in the book are chapters from leaders in digital assets, including Don Wilson and Don Tapscott. Doc Sandor gives Jim Kharouf and I a tip of the hat in the book as we are mentioned as leading figures in the financial press covering the…