| | | | | | | | February 03, 2025 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | Friday afternoon, the CME Group shared the sad news via LinkedIn that longtime CME member and former board member Mike Dowd had passed away. Dowd was 67 and was a co-founder of the Dowd Wescott Group. You can find his obituary in the Chicago Tribune HERE. Our condolences to the friends and family of Mike Dowd.
Dowd grew up in Glenview, the same town as I did. He attended Loyola Academy and was four years ahead of me, while I went to Glenbrook South High School. Like me, he spent time at MF Global and First Options of Chicago, though I was a customer. Later, he partnered with David Wescott to form Dowd/Wescott, following the collapse of U.S. Futures & Options & Company, a firm owned by John H. (Bud) Frazier. The company went bankrupt due to a rogue broker and significant wrong-way customer positions in the 1993 spring flood grain markets. Wescott's previous firm had introduced USFO to First Options, which was where the debits were. This opened the door for a new partner for Wescott and an opportunity for Dowd. Funny how lives can be intertwined, while in separate spheres. ~JJL
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Cboe's David Brent Discusses Transparency, Global Access, and Future Trends at FIA Expo
JohnLothianNews.com
David Brent, global head of data & analytics sales at Cboe Global Markets, emphasized the critical role of transparency and data accessibility in modern trading during an interview with John Lothian News at the FIA Expo. Brent highlighted how electronic trading has revolutionized market operations by improving efficiency and providing traders with a competitive edge.
Watch the video »
| | | | | | Lead Stories | | | Cboe Stock Exchange to Extend Trading to 24 Hours, 5 Days a Week; Chicago-based venue aims to offer investors nonstop trading; Firm joins Robinhood, Interactive Brokers in extending hours
Katherine Doherty - Bloomberg
Cboe Global Markets Inc. is extending trading on its equities exchange to 24 hours on weekdays, the latest venue to take advantage of the growing global demand for US stocks. The exchange operator will offer trading on its Cboe EDGX Equities Exchange - its main equities venue - through the US daytime and overnight, according to company executives. The plan, which is subject to regulatory approval, calls for trading Sunday night through Friday night, with breaks only on the weekends.
/jlne.ws/42DVQEP
**** Here is the link for the Cboe press release related to this news.~JJL
The Necessity of Real-Time Options Data for Retail Participants
Cboe
While retail participation in options markets had been on the uptick over the last 10 years, it surged during the pandemic, where listed options volume reached (then) all-time highs. The record-breaking market activity has continued since then: in 2024, a record 12.2 billion options contracts traded in the U.S., up 10.6% from 2023's total. That's the fifth consecutive record year for volumes.
/jlne.ws/4hESypg
What Does it Take to Offer Around the Clock Equities Trading?
Cboe
Markets have become increasingly interconnected in recent years, and investors worldwide are more eager than ever to access markets outside of their own country. As Dave Howson wrote on Cboe Insights, according to the U.S. Department of the Treasury - which releases this data annually in February - foreign investors owned $26.86 trillion in U.S. securities as of June 2023, up from $24.8 trillion in June 2022. Further, foreign investors' equity holdings in 2023 were up 124% from 2016, climbing from $6.1 trillion to $13.7 trillion in that time frame. As this participation increases, it is no surprise that investors would want access to these markets during their local regular trading hours.
Cboe has continued to seek ways to serve this growing demand, offering Early Hours Trading on its U.S. equities exchanges and Global Trading Hours for certain derivatives products. However, the demand for more access to U.S. equities markets - potentially on a 24-hours, five-days-a-week (24x5) basis - has never been stronger, and Cboe is prepared to deliver, as soon as the necessary regulatory approvals and industry developments are in place.
/jlne.ws/4jFJwtX
The Necessity of Real-Time Options Data for Retail Participants
Cboe
While retail participation in options markets had been on the uptick over the last 10 years, it surged during the pandemic, where listed options volume reached (then) all-time highs. The record-breaking market activity has continued since then: in 2024, a record 12.2 billion options contracts traded in the U.S., up 10.6% from 2023's total. That's the fifth consecutive record year for volumes.
/jlne.ws/4aGUA67
Robinhood Launches Super Bowl Event Contracts for Retail Traders
Paige Smith - Bloomberg
Robinhood Markets Inc. is getting in on the sports event contracts craze, offering retail investors the opportunity to place trades on the outcome of Sunday's Super Bowl. The contracts will be available starting Monday to eligible customers in all 50 states through the derivatives exchange Kalshi Inc., according to a Robinhood statement. "With an emerging asset class like event contracts, we recognize an opportunity to better serve our customers as their interests converge across the markets, news, sports and entertainment," the company said in the statement.
/jlne.ws/3PYcqbc
***** This is not exactly an example of stealing from the rich to give to the poor.~JJL
| | | | | | Exchanges | | | Cboe Announces Plans to Launch 24x5 U.S. Equities Trading
Cboe
Cboe Global Markets (Cboe), the world's leading derivatives and securities exchange network, today announced plans to offer 24-hour, five-days-a-week (24x5) trading for U.S. equities on its Cboe EDGX Equities Exchange (EDGX), subject to regulatory review and industry developments. The proposed expansion aims to meet growing global customer demand for expanded access to U.S. equities markets.
/jlne.ws/3EnGXMY
Japan Exchange Group Trading Overview In January 2025
JPX via Mondovisione
Japan Exchange Group released Trading Overview in January 2025. Cash Equity Market - In January 2025, the daily average trading value for the Prime Market (domestic common stocks) was JPY 4.9184 trillion. - The daily average trading value for the ETF market was JPY 307.5 billion.
/jlne.ws/42KG7El
| | | | | | Technology | | | JPXI And Snowflake Enter Partnership To Expand Japan Market Data Access
Mondovisione
JPX Market Innovation & Research, Inc. ("JPXI"), a leading global provider of Japan's financial market data, and Snowflake, the AI Data Cloud company, today announced a priority partnership between the companies to jointly disseminate data over Snowflake's market-leading platform. Data provision via Snowflake will enable market participants to enjoy improved access to JPXI's rich and varied data offerings and empower cost-effective development of data analysis environments.
/jlne.ws/4gs95M6
| | | | | | Strategy | | | DSPX Index Nears 3Y High as Focus Shifts From AI to Trade
Mandy Xu - Cboe
Implied volatilities are up pre-market as US imposed tariffs on Canada, Mexico, and China over the weekend. USDCAD 1M implied vol has almost doubled since the election, up another 1.3 pts last week to a 2-year high of 8.6%. Notably, fears of escalation are also increasing, as Trump threatens tariffs on other regions. EURUSD 1M implied vol jumped 1.1 pts to 8.5% this morning.
/jlne.ws/3EoHKNO
| | | | | | Miscellaneous | | | Parents Ditch 529 Plans and Embrace Bitcoin for College Savings; Despite the risks and volatility, some families are investing in cryptocurrency to build wealth for their children.
Charlie Wells and Claire Ballentine - Bloomberg
Bitcoin FOMO has come for family finances. Most parents typically worry about funding 529 college savings plans, brokerage accounts or high-yield savings vehicles for their kids. Now, a subset are eschewing the old ways, pushing instead to pile up enough Bitcoin to help their children in the years ahead. Some say it's because stock gains aren't good enough. Others view it as reasonable diversification. Plenty are true believers - convinced that, despite a more than 500% gain since the depths of the last "crypto winter," Bitcoin's climb has only just begun. The world's biggest cryptocurrency surpassed the $100,000 mark for the first time in December, having changed hands for less than $16,000 in November 2022.
/jlne.ws/4hkFOUS
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