| October 14, 2024 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | CNX Shares Soar to Decade High While Traders Pile Into Options; Derivative contracts volume in the shale driller surges; Trades bet on stock climbing some 20% over next six months
David Marino - Bloomberg
At least one investor is making a big bet that CNX Resources Corp. will keep climbing even as the natural gas producer's stock reached a 10-year high this week. Options trading in CNX surged as one or more investors bought over 34,000 call options on Thursday and Friday. The derivatives give holders the right to buy more than 3 million shares at $40 by mid-April. The wager was made while the stock was still trading around $35, shares advanced 5.1% Friday to $36.52, the highest since July 2014.
/jlne.ws/4h7gYIs
Bullish bets on VIX rise heading into US election: COT report
Matt Simpson - Forex.com
Traders seems [sic] to be hedging event risk with the VIX heading into the US election, with traders close to net-long exposure despite record highs for the VIX. Asset managers and large specs continue to have opposing bets on the USD index, with the former generally being on the correct side of the dollar's direction.
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Hurricane-themed ETF to be liquidated; ProcureAM's $3mn FIXT fund, which invests in natural disaster recovery, has been unable to attract investors
Daniel Gil - Financial Times
An ETF that invests in companies involved in natural disaster recovery and prevention will be shuttered, its sponsor disclosed last week, just days after Hurricane Helene made landfall in Florida. ProcureAM, which manages the roughly $3mn Procure Disaster Recovery Strategy ETF (FIXT), filed to dissolve the fund last week following approval from its board of trustees. The fund's last day of trading on the Nasdaq exchange will be October 17, according to a regulatory filing.
/jlne.ws/402UqT2
Global Executives Seek Protection From Election-Fueled FX Swings; Corporates are looking to extend hedges beyond polling day; Foreign-exchange market volatility gauges start to pick up
Carter Johnson, Michael O'Boyle, and Eddy Duan - Bloomberg
Less than a month from polling day, a toss-up US presidential election that could rattle currency markets is leading finance executives to bolster their companies' foreign-exchange hedges. In an increasingly close campaign for the presidency and Congress, Kamala Harris and Donald Trump are presenting diverging views on trade, government spending and the economy. Firms that operate across different countries are contending with a wide range of scenarios - including a Republican or a Democratic sweep - that could lead to sharp currency swings like those seen eight years ago when Trump was first elected.
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Volatile Bond Market Puts Traders on Defense Amid Fed-Cut Doubts; Move Index rises toward 2024 high as key yields exceed 4%; Big asset managers favor the sweet spot of five-year debt
Michael Mackenzie and Liz Capo McCormick - Bloomberg
Bond investors are going on defense as the outlook for the Federal Reserve's interest-rate cutting path turns more uncertain.
The combination of sticky inflation and weak labor-market figures last week led traders to trim bets on the degree of Fed easing left in 2024, while also driving yields to the highest since July. Meanwhile, a closely watched measure of expected volatility in Treasuries rose to the highest since January.
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| | | | | | Exchanges | | | B2PRIME Launches Futures-Based Options in Response to $10 Trillion Market
Tareq Sikder - Finance Magnates
B2PRIME has expanded its range of financial instruments to meet the demand in the market. The company introduced new futures-based options, reflecting the increasing interest among investors in diversified financial products.
Global trading volume for futures contracts has exceeded $10 trillion annually, according to the World Federation of Exchanges, underscoring the rising activity in this sector.
/jlne.ws/3YmLvKZ
CME Group International Average Daily Volume Reached New Record of 8.4 Million Contracts in Q3 2024
CME Group
CME Group, the world's leading derivatives marketplace, today announced that its international average daily volume (ADV) reached a record 8.4 million contracts in Q3 2024, up 29% year on year. Reflecting all trading reported outside the United States, the record volume was driven by growth across all asset classes, with the highest trading volumes coming from interest rate and equity products, which accounted for three-quarters of the growth in volume. Interest rate products saw record growth of 32% in quarterly volumes year on year, driven by an increase of 38% growth in SOFR futures and 25% growth in Treasury contracts. In addition, Energy products saw 30% growth, Equities products were up 25%, and record FX volumes increased by 14% in the third quarter.
/jlne.ws/4dJybVx
| | | | | | Regulation & Enforcement | | | Ethereum ETFs bleed $550m as SEC delays options nod: 'I was way too bullish'l Analysts wonder if the SEC might have approved the ETFs too early.
Osato Avan-Nomayo - DL News
Spot Ethereum exchange-traded funds have underwhelmed after trading in the US for three months.
Market observers such as Bloomberg Intelligence analyst James Seyffart predicted huge flows for Ethereum ETFs âEUR⢠up to a quarter of the $32 billion projected for their Bitcoin counterparts.
/jlne.ws/3Yru1gQ
| | | | | | Moves | | | EXCLUSIVE: Cboe hires former Credit Suisse MD in derivatives push
Radi Khasawneh - FOW
Cboe said Steven Jorgensen started this week at the firm's London office as vice president, head of derivatives sales for European and Middle East clients. Jorgensen was most recently co-head of equity derivatives flow sales for Europe, the Middle East and Africa (EMEA) at Credit Suisse, leaving the Swiss bank in October 2023 after 13 years. He has also held an equity derivatives role at Deutsche Bank in a career stretching back to 2004.
/jlne.ws/3U8or00
Australian Hedge Fund Star Liu Departs Tribeca to Start New Firm
Harry Brumpton and Georgina McKay - Bloomberg
The manager of Australia's second-best performing hedge fund, Jun Bei Liu, plans to open her own firm, ending nearly two decades with Tribeca Investment Partners. Sydney-based Liu is set to launch the A$1.5 billion ($1 billion) long-short strategy she currently manages under a new yet-to-be-named company by the start of 2025, with backing from Tribeca, which will provide administrative support.
/jlne.ws/4h5OwHa
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