REVIEWS

John Lothian Newsletter: March 27, 2003

John is the editor of the John Lothian Newsletter, a daily email intelligence briefing about what is going on within the worldwide futures and securities communities. The newsletter was created to help the traders manage the historic level of change occurring within the futures and securities industries through the dissemination of information and commentary. This good will marketing newsletter is read daily by traders, brokers, brokerage executives, exchange staff, exchange members, regulators, media, vendors, independent software vendors, industry leaders, and other parties with a professional or personal interest in the futures and securities industries.

The Story Behind a Good Single Stock Futures Book by Richard Friesen

I often say that there are two people to whom this newsletter will always be forwarded on a daily basis; the person one of my essays makes the happiest and the person whom it makes the least happy. I would like to tell you one of the happy stories.

One of my favorite essays I have written for this newsletter is “The Gestalt of Open Outcry Trading and Electronic Trading.” I like it because I think it was a pretty good essay and because I was able to use the word “gestalt” a lot in it.

As the viral process of the newsletter worked its magic to find the person who liked this essay the most the newsletter found its way to Richard Friesen. Rich is a former CBOT, CME and Pacific Exchange member who had founded ePIT Systems, which was a dotcom company that had built an open and transparent matching engine. ePIT Systems wanted to bring the transparency and openness of open outcry into electronic trading. It was a noble effort that followed the path of many dotcoms and ended with the sale of ePIT's system to Hitachi, an ePIT investor and customer.

Rich contacted me after reading the gestalt essay. I added him to the distribution list and his knowledge of me began to grow. It turns out that we had a very similar interest in the potential of single stock futures. Thus, when Rich decided he wanted to trade SSFs, he decided I was the broker he wanted to trade through and so he approached me.

That sounds like a simple story of how this newsletter has helped me raise accounts, but there is much more to the story. It turns out the Rich and I enjoy both enjoy writing, a lot. So, when Rich was approached by a consulting client for some information about single stock futures, Rich started writing. He kept writing about single stock futures and did not stop at memo, white paper or booklet. He kept writing until he had written a book about the subject; a manual that everyone interested in single stock futures ought to read before trading.

Rich sent me a copy of the book to preview and ask for suggestions. I read the book and was engrossed in it like a well-written novel. I could not put the book down until I had read every word. Rich put into a book about single stock futures things that I had seen no other author include. You see Rich was a floor trader, futures and stock options. He knows how a pit trader thinks because he was one. His was a perspective I had not read before.

The other thing about the book that I really liked was Rich’s unvarnished style. He tells it like it is. He presents a terrific historical perspective of the futures industry and why things are the way they are. He pulls no punches because he is not a broker, brokerage executive, exchange executive or someone else with a key economic interest in the success of this product.

Yes, Rich has written a book that he is selling as an e-book, but I believe it is worth the modest price ($39.95) and exponentially more to those interested in single stock futures. In fact, he believes in the value of his book so much that he offers a “no-risk” money back guarantee. He says, “If this isn't the simplest way to understand Single Stock Futures, I will return your money.”

I know I sound like an infomercial when I start talking about guarantees and no-risk. Of course there is always a risk in any transaction, so you will have to assess those risks and your tolerance for them. I can tell you that I think this is the best book I have read about single stock futures. I can tell you that it is some of the best information about this product that I have seen, and I have been to a lot of seminars about SSF. I have even been a presenter in some of those seminars.

If I were a stockbroker and had heard about single stock futures, but did not really understand them or the futures industry, I would be all over this book. If I was a long time stock trader and wanted to understand the futures industry and this new product, bingo this is the book. If I was a futures trader and wanted to learn about SSFs, this is the book.

I receive no direct economic benefit from the sale of this book, though I have been invited to dinner when Rich comes to town. I do receive an indirect economic benefit from single stock futures being a success as they are one of the products I offer my clients, including Rich Friesen.

Regards,
John J. Lothian

President
Electronic Trading Division
The Price Futures Group, Inc.

Disclaimer: This letter is strictly the opinion of its writer, and not necessarily those of The Price Group and its management, and is intended solely for informative purposes and is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers.
Futures and options trading involve risk. Past results are no indication of future performance.