| March 20, 2025 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | Today JLN published the first two videos from our FIA Boca50 coverage, an interview with Acting CFTC Chairman Caroline D. Pham and another with Blue Ocean's CEO Brian Hyndman. The videos are posted below and on www.johnlothiannews.com. This installment of the JLN Industry Leader series is sponsored by the OCC.
CFTC's Pham Highlights Enforcement Reforms, Crypto Regulation Efforts at FIA Boca 50
JohnLothianNews.com
BOCA RATON, Fla. (JLN) - Acting Chairman of the Commodity Futures Trading Commission (CFTC) Caroline D. Pham outlined her agency's restructuring efforts, regulatory priorities, and role in the evolving digital assets landscape in an interview at the FIA Boca 50 conference.
Watch the video »
Blue Ocean ATS Dominates Overnight Trading, Expects to Maintain Edge for 3-5 Years
JohnLothianNews.com
BOCA RATON, Fla. (JLN) - Brian Hyndman, the CEO of Blue Ocean Technologies, an alternative trading system (ATS) specializing in overnight trading of U.S. equities catering to a global audience, acknowledged the emergence of potential competitors in the 24-hour trading space for U.S. equities in an interview with John Lothian News at FIA Boca50. However, he said he thought that with the industry not quite ready for full-fledged 24-hour exchange operations, the ATS model would prove superior in the short term.
Watch the video »
| | | | | | Lead Stories | | | A $4.5 Trillion Triple-Witching Gives Investors Yet Another Test
Bernard Goyder - Bloomberg
US stocks' rebound off of last week's lows will face a new test on Friday, when a pile of options contracts are set to expire in a quarterly event that often stoked volatility in the past. The so-called "triple-witching" will see about $4.5 trillion of contracts tied to stocks, indexes and exchange-traded funds mature, estimates compiled by Citigroup Inc. show.
/jlne.ws/4ijtXqQ
Options Traders Bet Big on More BOE Cuts Than Market Expects
James Hirai - Bloomberg
Options traders have placed one of the biggest bets in over a year on the Bank of England lowering interest rates by more than markets expect, just as policymakers prepare what might be the most hawkish monetary policy decision in months. The wager will pay out more than ÃGBP25 million ($32 million) - five times the amount invested - if UK policymakers deliver three quarter-point rate cuts this year, one more than swaps are currently pricing. The options bet was initiated last week and has built up over the past days.
/jlne.ws/4htxfXk
Bitcoin Options Flip Bullish After Powell's Transitory Inflation Remark, Ether Still Lags in Sentiment; The Fed retained forecast for two rate cuts Wednesday, with Powell calling the inflationary impact of Trump's tariffs transitory.
Omkar Godbole - CoinDesk
Bitcoin (BTC) punters are looking at topside options bets in a bullish shift in price expectations after the Federal Reserve's (Fed) meeting, but ether (ETH) continues to lag sentiment. As of writing, BTC's short-term and long-term risk reversals, which show the implied volatility premium (demand) for bullish bets or calls versus puts, were positive, implying investor interest in chasing price gains in the leading cryptocurrency, per data source Amberdata.
/jlne.ws/4iGNqS5
Stock market today: Wall Street rallies as pressure eases from the bond market after Fed decision
Stan Choe - AP
U.S. stocks climbed Wednesday after the Federal Reserve said the economy still looks healthy enough to keep interest rates where they are. Wall Street also got a boost from easing yields in the bond market. The S&P 500 jumped 1.1%. The Dow Jones Industrial Average added 383 points, or 0.9%, and the Nasdaq composite rose 1.4%. The rally followed weeks of sharp and scary swings for the U.S. stock market. Uncertainty is high about how much pain President Donald Trump will allow the economy to endure in order to remake the system. He's said he wants manufacturing jobs back in the United States and far fewer people working for the federal government.
/jlne.ws/41G6edo
Stocks Halt Fed-Fueled Rally as Trade Fear Lingers: Markets Wrap
Rita Nazareth - Bloomberg
A fresh bout of instability gripped the stock market as uncertainties around the potential impacts of a trade war outweighed the latest housing and jobs data showing the world's largest economy is still holding up. Following the S&P 500's biggest advance for a Federal Reserve day since July, the US equity benchmark pushed lower again. Not only does sentiment remain fragile just a week after the gauge slipped into a correction, the market is heading toward a big test on Friday. That's when an estimated $4.5 trillion of options contracts expire in a quarterly event ominously known as triple witching that often stokes volatility.
/jlne.ws/4bFYoFf
| | | | | | Exchanges | | | CME Group to Launch BrokerTec U.S. Treasury Central Limit Order Book in Chicago to Streamline Trading Between Cash and Futures Markets
CME Group
CME Group, the world's leading derivatives marketplace, today announced that it will launch a second BrokerTec central limit order book (CLOB) for cash U.S. Treasuries in Q3 2025. In an industry-first, the new CLOB will be co-located in Chicago next to CME Group's deeply liquid U.S. Treasury futures and options markets to support trading between cash and derivatives markets.
/jlne.ws/4bDUahn
JPMorgan (JPM) launches Vix Short-Term Futures ETNs on NYSE Arca
Street Insider
JPMorgan Chase Financial Company LLC (NYSE: JPM) announced that today is the first day of trading on NYSE Arca for its Inverse VIX Short-Term Futures ETNs due March 22, 2045 under the ticker symbol "VYLD". Any payment on the ETNs is fully and unconditionally guaranteed by JPMorgan Chase & Co. The ETNs seek to provide exposure to the daily returns of the S&P 500 VIX Short-Term Futures Points-Change Inverse Daily Index TR, subject to the daily investor fee deduction at a rate of 0.85% per annum. The ETNs will also be redeemable at the sole discretion of JPMorgan Financial on any trading day after March 21, 2025 until maturity.
/jlne.ws/4iKpY6C
Whose Gold Is It Anyway? New 10 Gram Contract Likely To Attract Equity Derivatives Traders; A 10-gm future contract will make an easier hedge for retail traders, since physical gold has the same contract in the market.
Agnidev Bhattacharya - NDTV Profit
A new gold future contract may be the next big thing for derivatives traders who have been snubbed by regulatory curbs on equity futures and options. Amid record-high prices, the Multicommodity Exchange of India said it would launch gold 10 gram future contracts from April 1. The minimum price movement will be of Rs 1, and the contracts will have monthly expiries. Traders and industry experts believe this contract is likely to bring in small participants who have moved away from Nifty and Sensex's index derivatives.
/jlne.ws/4iGE3Sp
| | | | | | Technology | | | DTCC's NSCC to Increase Clearing Hours to Support Extended Trading
DTCC press release via Traders Magazine
The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced that its National Securities Clearing Corporation (NSCC) subsidiary will increase clearing hours to support extended trading with implementation targeted for Q2 2026, subject to regulatory review and approval of any necessary rule changes. Extending clearing hours will deliver increased client value by maximizing liquidity and reducing counterparty risk as NSCC will be able to apply its central counterparty guarantee to overnight activity across different time zones for global participants.
/jlne.ws/4ipHTzI
| | | | | | Strategy | | | Using a ZEBRA Strategy on $USO for Long Exposure
Errol Coleman - TastyLive
This smart way to handle an options trade in oil eliminates time decay and limits downside risk.
Long-term investment opportunities are arising in the crude oil market, but traders should remain strategic. Caution seems advisable because of the uncertainty caused by geopolitical tension, shifts in economic policy, and fluctuations in supply and demand. Plus, tariffs are pushing the country toward weaker economic growth and higher inflation, Federal Reserve Chair Jerome Powell warned yesterday. But about those opportunities: One way I'll be looking to capitalize on a potential oil price rebound is through $USO (United States Oil Fund) using the ZEBRA (zero extrinsic back ratio) strategy. This method was pioneered by Liz Dierking and Jenny Andrews, hosts of the tastylive program called the The LIZ & JNY Show. It provides synthetic stock exposure without the concern of time decay - a significant advantage over traditional long options strategies.
/jlne.ws/4bIGZvA
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