| | | | | | | | January 13, 2025 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
Trading Technologies Expands Multi-Asset Offerings and Innovations
JohnLothianNews.com
Trading Technologies (TT) is set to expand its global reach and multi-asset capabilities, fueled by partnerships and innovations, executives Keith Todd and Alun Green revealed in an interview with John Lothian News at FIA EXPO. The firm plans to introduce access to Cboe's complex index options by early 2025, addressing growing demand from international clients, particularly in Asia.
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Jonathan Kellner - CEO of MEMX
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Sriram Krishnan - National Stock Exchange (NSE)
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| | | | | | Lead Stories | | | BlackRock Launches New Bitcoin ETF on Cboe Canada
BusinessWire
Cboe Canada Inc. ("Cboe Canada") is proud to welcome BlackRock Asset Management Canada Limited for the launch of their latest ETF, the iShares Bitcoin ETF (the "iShares Fund"). The iShares ETF now trades on Cboe Canada under the symbol IBIT, with U.S. dollar denominated units trading under the symbol IBIT.U.
The iShares Bitcoin ETF seeks to reflect generally the performance of the price of bitcoin, before payment of the iShares Fund's expenses and liabilities. The iShares Fund invests all or substantially all of its assets in iShares Bitcoin Trust ETF ("U.S. IBIT"), and U.S. IBIT invests in and holds substantially all of its assets in long-term holdings of bitcoin. The iShares Bitcoin ETF will allow investors to gain access to bitcoin in their brokerage accounts.
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Traders Brace for Biggest S&P Earnings-Day Reactions Ever; Traders expect a 4.7% swing in stocks after results are posted; 'It's a stock picker's earnings season once again,' BofA says
Alexandra Semenova - Bloomberg
Traders are bracing for one of the most volatile earnings periods in stock market history.
At least that's what they are positioning for two days before big banks kick off the reporting cycle in the US. Options traders expect individual stocks in the S&P 500 Index to move 4.7% on average in either direction after reporting their results, the largest earnings-day moves on record, according to strategists at Bank of America Corp.
With uncertainty about inflation and the prospect of further interest-rate cuts fraying investors' nerves, traders are turning to earnings season for reassurance that, at least for Corporate America, all is well. Regardless of the actual results, rising volatility is good news for active managers that discern losers from winners, the bank's strategists say.
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Option Trades in China ETFs Swing From Gain to $100 Million Loss
David Marino - Bloomberg
Traders who briefly had been sitting on more than $100 million in paper profits after buying call options in early December on a pair of tiny China-linked ETFs appear to have closed the positions Friday at almost as big of a loss. From Nov. 29 through the first week of December, traders picked up calls allowing the holder to buy 18 million shares of Direxion Daily FTSE China Bull 3x Shares (ticker YINN) by January 2026. And on Dec. 2, about 210,000 of the May $15 calls on the Direxion Daily CSI 300 China A Shares Bull 2x Shares (ticker CHAU) were bought.
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Oil Traders Betting on More Volatility Win Big on US Sanctions
Mia Gindis and Devika Krishna Kumar - Bloomberg
Oil traders who bought options in a bet that crude oil would snap out of its doldrums are set to reap the rewards as prices surge on fresh sanctions against Russia. A gauge of implied volatility jumped by the most in two months as futures surged more than 3% after the US announced new sanctions on two major Russian energy companies. The move by the Biden administration threatens to curb exports from Russia, tightening a supply balance that had been expected to tip into surplus.
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Nickel Sulphate Futures Debut in Singapore to Tap Growing Demand
Annie Lee - Bloomberg
A nickel sulphate futures contract has been launched by Abaxx Exchange in Singapore to meet growing demand for battery ingredients and address price divergence between types of the metal. Nickel sulphate is used to make batteries for electric vehicles, while the refined nickel that's deliverable against London Metal Exchange contracts is mainly used for steelmaking. There have been calls from the industry for new pricing systems that could serve as an alternative to the LME ever since a massive short squeeze on the bourse in early 2022. The nickel sulphate contracts "meet the growing demand for reliable price benchmarks in a rapidly transforming market," Abaxx Technologies Inc., which majority owns the exchange, said in a statement on Friday. "Nickel sulphate markets are evolving rapidly, and market participants need tools that reflect the realities of physical trading," Nancy Seah, chief executive officer of Abaxx Exchange, said in the statement.
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Big Banks Poised for Trading Windfalls From Election Volatility
Katherine Doherty and Todd Gillespie - Bloomberg
The US elections in November stirred up more than just political anxiety: Volatility fueled by the vote, combined with global geopolitical upheaval, probably generated near-record trading revenue for Wall Street's biggest banks. JPMorgan Chase & Co., Goldman Sachs Group Inc., Morgan Stanley, Bank of America Corp. and Citigroup Inc. are expected to round out 2024 with a combined 15% increase in trading revenue to $24.5 billion, the highest fourth quarter in at least five years. Their equities teams are expected to have had a particularly good quarter, as investors placed bets on how the election would affect stock prices.
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| | | | | | Exchanges | | | Deutsche Boerse deal for ISE gets U.S. antitrust nod
Reuters
U.S. antitrust authorities said on Tuesday they had approved plans by German exchange operator Deutsche Boerse to buy fast-growing U.S. options market International Securities Exchange .
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Traxys and HNK Alpha Execute First Nickel Sulphate Futures Block Trade on Abaxx Commodity Futures Exchange and Clearinghouse
Abaxx
Abaxx Technologies Inc. (CBOE CA:ABXX)(OTCQX:ABXXF) ("Abaxx" or the "Company"), a financial software and market infrastructure company, majority shareholder of Abaxx Singapore Pte Ltd., the owner of Abaxx Commodity Exchange and Clearinghouse (individually, "Abaxx Exchange" and "Abaxx Clearing"), and producer of the SmarterMarkets⢠Podcast, today announced the execution of the first nickel sulphate futures block trade, traded between Traxys and HNK Alpha on January 10, 2025. Traxys and HNK Alpha traded 5 lots of April 2025 Abaxx Nickel Sulphate Singapore futures contracts at USD $14,600/tonne nickel contained. The trade was brokered by StoneX Financial Pte Ltd., a subsidiary of StoneX Group Inc. (NASDAQ: SNEX).
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CME Group International Average Daily Volume Reaches Record 7.8 Million Contracts in 2024, Up 14% from 2023
CME Group
CME Group, the world's leading derivatives marketplace, today announced that its international average daily volume (ADV) reached a record 7.8 million contracts in 2024, up 14% from 2023. Reflecting all trading reported outside the United States, this was driven by record growth in Energy up 31%, Metals up 27%, Agricultural up 25%, Interest Rate up 12% and Foreign Exchange products up 10% compared to the same period in 2023.
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Nasdaq Announces End-of-Month Open Short Interest Positions in Nasdaq Stocks as of Settlement Date December 31, 2024
Nasdaq
At the end of the settlement date of December 31, 2024, short interest in 3,085 Nasdaq Global MarketSM securities totaled 12,137,206,474 shares compared with 11,912,589,852 shares in 3,063 Global Market issues reported for the prior settlement date of December 13, 2024. The end-of-December short interest represents 2.50 days compared with 2.65 days for the prior reporting period. Short interest in 1,643 securities on The Nasdaq Capital MarketSM totaled 2,331,105,942 shares at the end of the settlement date of December 31, 2024, compared with 2,179,343,976 shares in 1,672 securities for the previous reporting period. This represents a 1.00 day average daily volume; the previous reporting period's figure was 1.00.
/jlne.ws/3WgQJX8
Beyond Borders: Starting 2025 Strong
Dave Howson, Global President, Cboe
2024 was a strong year at Cboe as we continued to innovate, enhance market accessibility and deliver trusted solutions to meet the needs of an ever-evolving market. Access to global markets was a key focus in 2024. Our markets are more connected than ever and gaining deeper insight into different markets is a priority for investors everywhere. As I wrote about in October, the U.S. markets are especially of interest to investors around the world. We made strides in growing our import business-helping foreign investors access U.S. markets-last year with new products, like options on VIX futures, and expanding accessibility of our market data products over various channels including Cboe Global Cloud and Cboe DataShop, with more to come in 2025.
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| | | | | | Moves | | | MIAX Exchange Group is hiring a new Trading Floor Official Analyst at the MIAX Sapphire Options Exchange in Miami, Florida. ~ JJL
| | | | | | Strategy | | | Wall Street Eyes Cheap Hedges for Stock Rally Showing Strains; Treasury futures, options point to dip-buying after hitting 5%; Dollar bulls are looking for more gains following jobs report
Christian Dass - Bloomberg
Investors are starting 2025 with a conundrum: how to protect against potentially bigger risks while not missing out on a stock-market rally.
On the one hand, just about every sell-side strategist has an S&P 500 Index target above current levels, and the US economy remains strong. On the other, long-term Treasury yields are flirting with the key 5% level, with the dollar reaching a high after Friday's hotter-than-expected jobs report. All this while Donald Trump is about to be inaugurated as US president for a second time, showing every sign that he'll inject as much volatility into markets as he did the first time around.
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Wall Street Fear Index Jumps as Jobs Report Puts Markets On Edge
George Glover - The Wall Street Journal
The market's fear gauge was climbing on Monday after a blowout jobs report cemented the idea that the Federal Reserve won't cut interest rates by much-if at all-in 2025.
The Cboe Volatility Index, which tracks S&P 500 options and trades under the ticker VIX, rose 11% to 21.60 ahead of the U.S. open. Any reading of above 20 is typically seen as a sign of heightened uncertainty.
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| | | | | | Miscellaneous | | | Bridging the Liquidity Divide: A Path to Smarter Options Trading
Gino Stella, Sales and Trading Manager, TradingBlock - Traders Magazine
Liquidity is the lifeblood of financial markets, yet its fragmentation across 18 option exchanges presents a daunting challenge for traders, asset managers and hedge funds. Overcoming this fragmentation and integrating efficient liquidity management into everyday trading strategies has never been more critical. In 2024, options and futures contract volumes rose significantly relative to 2023, with total options volume up 10.6% to a record 12.2 billion contracts, according to the Options Clearing Corporation.
Today, the world of trading demands precision and flexibility. Enter customized algorithmic order routing, a powerful solution that allows traders to execute orders with unparalleled efficiency across exchanges. These tailored algorithms are a marked improvement over generic, off-the-shelf tools, empowering traders to design execution strategies for options trades that align precisely with their goals. The results? Optimized trade performance tailored to the trader's intentions, reduced costs through desired destination targeting, and a greater ability to tackle fragmented liquidity head-on.
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