 | | | | | | | | December 17, 2024 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | 
Access global volatility benchmark indices, derived from the world's most actively traded options on futures across asset classes. Explore CVOL, the global volatility benchmark index here.
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 Broadridge Advances Futures Execution Platform with AI and Partnerships JohnLothianNews.com In a recent interview at FIA Expo in Chicago, Dan Smalley, global head of business development - derivatives at Broadridge, outlined the company's strategy for innovation in the futures execution space. Watch the video »
| | | | | | Lead Stories | | | Deribit Partners With Paxos to Launch Pax Gold Futures and Options Trading; Deribit will now offer spot, perpetual, futures and derivatives for the PAXG token.
Deribit
Deribit, the world's premier digital assets derivatives exchange, today announced it has added support for the Pax Gold (PAXG), a token created by Paxos that is backed 1:1 by a fine troy ounce of LMBA good delivery gold vaulted in London. By adding PAXG to its platform, Deribit empowers traders to diversify their portfolios and hedge against market volatility. PAXG offers a unique opportunity to gain exposure to gold, a traditional safe-haven asset, within the digital asset ecosystem. Within the first week of launch, Deribit trading volume exceeded a quarter billion USD in notional value for gold, underscoring the growing demand for trading traditional assets on the blockchain.
/jlne.ws/4iFSMOb
Bitcoin Traders No Longer Chasing Record Price Rally Like Before, Options Data Show
CoinDesk via Markets Insider
While bitcoin (BTC) continues to reach new lifetime highs, the latest options market trend indicates that traders aren't chasing the uptrend with the same zeal as before.
On Monday, BTC's price rose above $107,000, surpassing the previous peak on Dec. 5 and taking the cumulative post-U.S.-election gain to over 50%, CoinDesk data show.
/jlne.ws/3DnXgsH
VIX Remains Subdued and Signals a Continued Bull Market
Jon Stojan - MSN
The VIX index dropped back below 20 on October 14 and signals a continuation of the bull market and a move back into the more risky stocks that drove the early gains in 2024.
The VIX, which is a measure of the market's expectations of future volatility based on S&P500 option prices and serves as a barometer for market volatility, has been in a broad trend decline since its dramatic spike to almost 40 in August.
/jlne.ws/4gE3XVT
Tech-Loving Hedge Funds Have a Crush on Utility Stocks; Coatue, Lone Pine and Third Point are placing their AI bets on power producers
Peter Rudegeair - The Wall Street Journal
Hedge-fund firms such as Coatue Management that are known for investing in next-generation technology companies have lately been piling into a sleepier sector. Old-school power companies such as Vistra, Constellation Energy and Talen Energy have become darlings among hedge-fund firms thanks to their starring role in the artificial-intelligence boom. Such companies command the scarcest resource in the generative-AI supply chain: the extra electricity that fuels the data centers needed to train large language models and answer prompts from users of AI chatbots such as ChatGPT.
/jlne.ws/49FPAhy
| | | | | | Exchanges | | | Coinbase ranks fifth globally in exchange revenue, surpassing Nasdaq and CBOE; Coinbase, the largest US-based crypto trading platform, captures 11% of global exchange revenue.
Oluwapelumi Adejumo - CryptoSlate
Crypto trading is rapidly outpacing traditional finance, with Coinbase leading the charge thanks to the improved market sentiment sparked by Donald Trump's election victory.
Jamie Coutts, the chief crypto analyst at Real Vision, shared data showing that Coinbase currently ranks fifth globally for exchange revenue, generating $5.75 billion over the past year. This figure outshines the figures from traditional stock market exchanges like Nasdaq and CBOE.
/jlne.ws/4iJ0GGw
Cboe Data Vantage: Data, Tools and Access to Navigate Global Markets with Confidence
Adam Inzirillo - Cboe
I hope you are enjoying the holiday season and looking forward to the new year. As 2024 comes to a close, I am reflecting on the year, the accomplishments of our team and thinking about what's ahead in 2025.
2024 was a year of alignment and optimization for the Cboe Data and Access Solutions business. Last year when I stepped into my role leading Data and Access Solutions, I was excited to broaden my understanding of the team and learn how we could harness our strengths to grow the business globally. After collaborating internally, connecting with our customers and evaluating the market landscape, we have developed a streamlined vision for the business with our customers at the forefront.
/jlne.ws/41CEoQI
Hong Kong stock exchange to reduce minimum price changes to boost liquidity; The reform aims to lower overall transaction costs and support a more efficient price-discovery process, says HKEX deputy CEO
Aileen Chuang - South China Morning Post
Bourse operator Hong Kong Exchanges and Clearing (HKEX) is set to reduce the minimum swing for stock prices by up to 60 per cent, in a move to bolster liquidity and transactions in Asia's third-largest capital market.
The reduction of the minimum price change, which determines the tightest bid-ask spread allowed, will encourage smaller trades. It will apply to equities, real estate investment trusts and other applicable securities - excluding debt securities, exchange-traded options and products, and structured products - with the first phase being rolled out in mid-2025. The second phase will be implemented in mid-2026, subject to a review of the first phase's results.
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HKEX to Reduce Minimum Spreads in Hong Kong Securities Market
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Tuesday) the conclusions to its Consultation Paper on the proposed reduction of minimum spreads in the Hong Kong securities market. HKEX received 110 non-duplicate responses from a wide spectrum of market participants. The proposals to reduce minimum spreads of equities, Real Estate Investment Trusts (REITs) and other Applicable Securities (excluding Exchange Traded Products (ETPs), debt securities, Exchange Traded Options (ETOs) and Structured Products) in two phases received support from a majority of respondents, both in terms of the total number of respondents and from the proportion of the cash market turnover that the respondents in support of the proposals represent.
/jlne.ws/3Dl5py9
EEX expands power derivatives portfolio to facilitate renewables integration
EEX
The European Energy Exchange (EEX) is set to introduce "Mon-Sun Peak Power Futures", a unique suite of contracts for the Spanish market, in addition to short-term futures for the Greek power market. Both new sets of contracts will be available from 24 February 2025. Developed in close coordination with the power trading community, the new "Mon-Sun Peak Futures" address the shift in power spot prices influenced by photovoltaic generation during daytime, regardless of the day of the week. These new contracts cover peak hours from 8:00am to 8:00pm CET, Monday to Sunday, matching the hedging needs over a full week, in line with solar power production. A full range of expiries from Day to Year will be available for these contracts, which will be initially launched for the Spanish market, with the potential to expand to other European markets in due course.
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| | | | | | Strategy | | | 'Most clients are probably out of balance': BlackRock's stock chief says investors should consider this portfolio change in 2025
Christine Ji - Business Insider
Most investors are overexposed to growth stocks, according to Tony DeSpirito of BlackRock.
Mag 7 outperformance has led the S&P 500 to become heavily growth-oriented.
Value stocks can act as a hedge against concentration risk and inflation in 2025, DeSpirito says.
Buying an S&P 500 index fund has long been considered an easy way to gain broad market exposure and diversification.
But these days, this is increasingly not the case, warns Tony DeSpirito, BlackRock's chief investment officer for US fundamental active equity and the lead portfolio manager of the BlackRock Equity Dividend portfolios.
/jlne.ws/3ZFvoYn
This team replicated the secret sauce of a winning hedge-fund strategy. Now any investor can try to copy it.; A team of strategists at Verdad successfully replicated the performance of so-called 'pod shops' using a collection of actively managed ETFs and mutual funds available to any investor
Joseph Adinolfi - MarketWatch
One of the hottest stories on Wall Street over the past few years has been the rise of so-called "pod shops."
These sophisticated hedge funds hire dozens, and sometimes hundreds, of individual portfolio managers. Each is handed a pot of money and tasked with pursuing their own investment strategy.
/jlne.ws/4gFzAyh
| | | | | | Education | | | Options Trading Concepts Live
tastylive (Video)
Mike, Nick, Katie, and Thomas take trading questions live on YouTube chat and explain the answers in depth using the tastytrade platform and graphics.
/jlne.ws/3ZX3TuP
| | | | | | Miscellaneous | | | Elon Musk Heard From the SEC; Also duplicating the MicroStrategy trade, buffer ETFs and hedge funds, Masayoshi Son's $100 billion commitment and snorting Adderall in the bullpen.
Matt Levine - Bloomberg
Oh Gary
I think a useful rough model is something like: 1. You and I and most people are approximately 100% subject to the law. If we do crimes we'll get arrested; if we commit securities violations we'll get fined; if we drive too fast we'll get pulled over. 2. Elon Musk is, like, 60% subject to the law? 3. In roughly a month, he will be, like, 20% subject to the law? Musk is extremely rich, he's litigious and willing to fight even without great legal arguments, he's popular online and has a large army of fans who get mad at his critics, and he is essential to various essential companies. You can't seriously expect all of the laws to apply to him.
/jlne.ws/3P2uBfn
Explainer: How would a U.S. bitcoin strategic reserve work?
Gertrude Chavez-Dreyfuss and Lisa Pauline Mattackal - Reuters
Bitcoin hit a record high above $107,000 on Monday after President-elect Donald Trump reiterated plans to create a U.S. bitcoin strategic reserve, stoking the enthusiasm of crypto bulls. Here's how the plan could work.
WHAT IS A STRATEGIC RESERVE?
A strategic reserve is a stock of a critical resource which can be released at times of crisis or supply disruptions. The best-known example is the U.S. Strategic Petroleum Reserve, the world's largest supply of emergency crude oil, which was created by an act of Congress in 1975 after a 1973-74 Arab oil embargo throttled the U.S. economy. Presidents have tapped the stockpile to calm oil markets during war or when hurricanes hit oil infrastructure along the U.S. Gulf of Mexico.
/jlne.ws/4fmoqxu
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