| | | | | | | | February 06, 2025 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | Intercontinental Exchange (ICE) delivered a stellar performance in 2024, marking its 19th consecutive year of record revenues. The company reported net revenues of $9.3 billion, a 16% year-over-year increase, with GAAP diluted EPS of $4.78 (up 14%) and adjusted diluted EPS of $6.07 (up 8%). Operating income reached a record $4.3 billion with a 46% margin, while adjusted operating income climbed to $5.5 billion at a 59% margin. ICE also posted record annual operating cash flow of $4.6 billion, a 30% increase, and adjusted free cash flow of over $3.6 billion, up 13% year over year. Buoyed by these strong results, ICE plans to resume share repurchases in the first quarter, underscoring its confidence in continued growth.
In January, Cboe experienced robust trading volumes, with SPX options achieving an average daily volume (ADV) of 3.46 million contracts-the second-best month on record. Notably, the Cboe set new benchmarks for short-dated options and global trading hours. On January 31, a record 2.42 million zero days to expiry (0DTE) SPX contracts were traded in a single day, marking the highest volume for 0DTE options. Additionally, on January 27, trading during Cboe's global session (7:15 p.m. to 8:25 a.m. CT) reached a new peak, with 253,000 SPX contracts exchanged, setting a record for that timeframe. Futures and Australian equities were the only areas down in January, -4.0% and -3.5% respectively from January of 2024. ~JJL
| | | | | | Lead Stories | | | Cboe Unveils Bold Proposal for Options on Spot Ethereum ETFs
Mwongera Taitumu - TronWeekly
Cboe BZX Exchange is making waves in the crypto market by proposing options trading on spot Ethereum ETFs. This strategic move aims to bring new opportunities for institutional and retail investors as well as enhance liquidity in the market.
Cboe BZX Exchange has proposed amending Rule 19.3 to enable options trading on spot Ethereum exchange-traded funds (ETFs). The exchange submitted this proposal following a similar proposal from NYSE American. The U.S. Securities and Exchange Commission (SEC) is currently reviewing NYSE's application.
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Cboe says overnight stock trading in Europe unlikely amid US retail frenzy; European traders are pushing for shorter hours as the US goes 24/5
Lars Mucklejohn - Financial News
Cboe Global Markets has poured cold water on overnight trading in European stocks after becoming the latest exchange to extend US equities trading to 24 hours on weekdays.
The Chicago-based group, which operates a pan-European exchange, plans to offer so-called 24/5 trading on its main US stock venue, the Cboe EDGX Equities Exchange.
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Tonight we're going to stonk-punt like it's 2021; US retail equity inflows have hit record levels this week
Bryce Elder - Financial Times
US single-stock buying by retail investors is hitting new records, and the Magnificent Seven is accounting for more than 70 per cent of net purchases, according to JPMorgan data. While ETF inflows were "minimal" on Tuesday, single-stock buys exceeded sells by $3.2bn, the broker found. That's about $1bn more than the second-biggest daily inflow on record, in March 2020.
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Unstoppable Retail Crowd Breaks Stock Buying Record Despite Rout; Mom-and-pop investor sentiment has reached record level; Retail investors poured $3 billion into stocks on Monday
Natalia Kniazhevich - Bloomberg
The volatile start to the year has spooked some professional investors but has done little to dowse retail traders' enthusiasm for the US stock market and the so-called Magnificent 7 companies. Mom-and-pop investor sentiment has reached the highest level on record, surpassing what was seen during the meme-stock mania in 2021, according to Emma Wu, JPMorgan's global quantitative and derivatives strategist. Individual investor exposure to stocks is near the highest level its been since 1997, an analysis by Barclays' global head of equities tactical strategies Alexander Altmann shows. And as long as the US economy remains resilient, those investors probably will stay stay in the game.
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Jim Chanos Says Biggest Risk for Markets Is DeepSeek-Like Event; Legendary investor sees speculation, but not near 2021 levels; Says investors need to differentiate among rich valuations
Carmen Reinicke and Norah Mulinda - Bloomberg
Famed short seller Jim Chanos says no one can see the biggest risks facing US markets over the next six to 12 months - because the challenges are going to be unpredictable events, like last month's DeepSeek collapse that wiped out roughly $1 trillion in market value from US stocks. "The real risks will be something like DeepSeek that comes out of left field that changes people's thinking," Chanos said in an interview with Bloomberg TV Wednesday. "By definition, we do not know what that is."
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Tariffs to Fuel Market Volatility in 2025, JPMorgan Finds; Trump announcements boosted FX trading volumes this week; Survey finds most traders have no plans to trade crypto
Greg Ritchie - Bloomberg
Global financial-market turbulence this week sparked by a series of US tariff announcements looks like just the beginning of a volatile year, according to a JPMorgan Chase & Co. electronic trading survey.
Inflation and tariffs will have the biggest impact on markets in 2025, followed by geopolitical tension, according to the annual trading poll. Some 41% surveyed highlighted volatility as their biggest anticipated daily trading challenge, up from 28% last year.
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Citadel nears deal to shrink, move Chicago office
Danny Ecker - Crain's Chicago Business
More than two and a half years after Citadel uprooted its headquarters from Chicago, the hedge fund is poised to slash its office footprint in the city and move out of its namesake Loop tower. Citadel is in advanced talks to lease about 55,000 square feet on two floors in the office building at 353 N. Clark St., according to sources familiar with the negotiations. The new office space in the 45-story River North tower would be a fraction of the 315,000 square feet it leases today at 131 S. Dearborn St., known as Citadel Center.
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Federal Reserve Board releases the hypothetical scenarios for its annual stress test
Federal Reserve Board
The Federal Reserve Board on Wednesday released the hypothetical scenarios for its annual stress test, which helps ensure that large banks can lend to households and businesses even in a severe recession. Additionally, the Board released two hypothetical elements designed to probe different risks through its "exploratory analysis" of the banking system. The exploratory analysis will not affect bank capital requirements. The Board's annual stress test evaluates the resilience of large banks by estimating losses, net revenue, and capital levels-which provide a cushion against losses-under hypothetical recession scenarios that extend two years into the future. This year, 22 banks will be tested against a severe global recession with heightened stress in both commercial and residential real estate markets, as well as in corporate debt markets. The scenarios are not forecasts and should not be interpreted as predictions of future economic conditions.
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| | | | | | Exchanges | | | CME Group Inc. Names Slate of Director Nominees
CME Group
CME Group Inc., the world's leading derivatives marketplace, today announced its slate of candidates for its board of directors for election at the company's annual meeting to be held Thursday, May 8, 2025.
The board of directors recommends the Class A and Class B shareholders voting together elect the following individuals to the board:
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CME crypto volumes hit all-time high in January: CCData; Bitcoin futures trading dominated Wall Street's most popular derivatives exchange, the data showed.
Alex O'Donnell - CoinTelegraph
Cryptocurrency trading volumes on the CME, the United States' largest derivatives exchange, reached all-time highs of approximately $285 million in January, according to a Feb. 6 report by CCData, a crypto researcher.
The spike in volumes, which increased some 8% over the prior month, was caused by rising trading activity in Bitcoin futures and options, which increased by around 12% and 125%, respectively.
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Intercontinental Exchange Reports Strong Full Year 2024 Results
ICE
Intercontinental Exchange (NYSE: ICE), a leading global provider of technology and data, today reported financial results for the fourth quarter and full year of 2024. For the quarter ended December 31, 2024, consolidated net income attributable to ICE was $698 million on $2.3 billion of consolidated revenues less transaction-based expenses. Fourth quarter GAAP diluted earnings per share (EPS) were $1.21. Adjusted net income attributable to ICE was $875 million in the fourth quarter and adjusted diluted EPS were $1.52. For the full year of 2024, consolidated net income attributable to ICE was $2.8 billion on $9.3 billion of consolidated revenues less transaction-based expenses. Full year 2024 GAAP diluted EPS was $4.78, up 14% year-over-year. On an adjusted basis, net income attributable to ICE for the year was $3.5 billion and adjusted diluted EPS was $6.07, up 8% year-over-year.
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Intercontinental Exchange Announces 7% Increase to its Quarterly Dividend
ICE
Intercontinental Exchange (NYSE: ICE), a leading global provider of technology and data, announced board authorization of its first quarter 2025 dividend of $0.48 per share, up 7% from its previous $0.45 per share quarterly dividend in 2024. The first quarter cash dividend is payable on March 31, 2025 to stockholders of record as of March 17, 2025. The ex-dividend date is March 17, 2025. ICE expects the annual total dividend for 2025 to be $1.92 per share. The expected record and payable dates for the balance of the year are expected to be as noted below, subject to board authorization.
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Cboe Global Markets Reports Trading Volume for January 2025
Cboe Global Markets, Inc.
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today reported January monthly trading volume statistics across its global business lines. The data sheet "Cboe Global Markets Monthly Volume & RPC/Net Revenue Capture Report" contains an overview of certain January trading statistics and market share by business segment, volume in select index products, and RPC/net capture, which is reported on a one-month lag, across business lines.
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CME Group Declares Quarterly Dividend
CME Group
CME Group Inc., the world's leading derivatives marketplace, today declared a first-quarter dividend of $1.25 per share, a 9% increase from the prior level of $1.15 per share. The dividend is payable March 26, 2025 to shareholders of record as of March 7, 2025.
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ASX Group Monthly Activity Report - January 2025
ASX
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EEX Press Release - EEX Group Monthly Volumes - January 2025
EEX
The EEX Group Global Power markets achieved a monthly traded volume of 1188.6 TWh, marking a +27% Year-on-Year growth. This included a 37% YoY growth on the EEX European Power Derivatives volumes, which reached a total of 810.9 TWh.
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January 2025 figures at Eurex
Eurex
Eurex, Europe's leading derivatives exchange - along with Eurex Clearing - one of the leading central counterparties globally, recorded a 13 percent rise in total trading volume for January, reaching 172 million contracts, up from 152.7 million contracts in the same month last year. The growth was primarily driven by equity derivatives, which increased by 65 percent from 17.4 million to 28.7 million contracts. Interest rate derivatives also saw an uptick, rising 12 percent to 82.7 million contracts. However, index derivatives experienced a 4 percent decline, falling from 61.4 to 59 million traded contracts.
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| | | | | | Regulation & Enforcement | | | Hedge Funds Slam 'Enormous Burden' of ESG in New Era of Pushback
Frances Schwartzkopff - Bloomberg
Hedge funds are seizing the rising tide of opposition to European ESG rules as an opportunity to seek exemptions from some environmental, social and governance reporting requirements. At issue is whether alternative investment managers should have to disclose ESG data on assets they invest in on behalf of their clients, under the European Union's Corporate Sustainability Reporting Directive. CSRD, which is designed to apply to all sectors, is currently the subject of intense debate as Germany and France seek to limit its scope. The EU's financial services commissioner, Maria Luis Albuquerque, has said there's room for adjustments in light of the criticisms.
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| | | | | | Technology | | | Devexperts Announces Futures Trading Platform
Anna Lyudvig - Traders Magazine
Devexperts, a global software developer for the capital markets industry, has launched a turnkey futures trading platform that will enable brokers looking to expand into both futures and options on futures trading. "We have seen a steady increase in futures trading volumes over the last few years and there continue to be a number of international market factors that suggest this trend is likely to continue," said Peter Snasdell, Senior Vice President at Devexperts.
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| | | | | | Strategy | | | How to trade the trade war; Global investors had time to prepare for Donald Trump's tariffs but swift market reversals are keeping them on edge
Ian Smith and Mari Novik and Harriet Clarfelt and George Steer - Financial Times
Financial markets have been roiled by US President Donald Trump's announcement of tariffs on key trading partners, and investors are bracing for further volatility ahead. Here's how they are trading Trump's on-again, off-again trade war. Wall Street has been working since before November's presidential election on how it should position for tariffs. Investment banks have built baskets of stocks with the highest sensitivity to Trump's plans - mostly exporters such as carmakers and consumer goods companies - which allow their clients to bet on the impact of a trade war across a range of stocks.
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| | | | John Lothian News (JLN) is the news division of John J. Lothian & Company, Inc. (JJLCO). The online media and financial services firm is staffed by derivatives industry, journalism and technology professionals. | | | | | | | John Lothian News Editorial Staff: | | | John Lothian
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| | | Jeff Bergstrom
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