| | Jeff Bergstrom
Editor
John Lothian News | |
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| Observations & Insight | In May 2025, the OCC reported robust growth in options trading activity, with total contract volume reaching 1,170,735,651 contracts-a 20.4% increase compared to May 2024. Equity options saw a 19.9% year-over-year rise to 639,901,447 contracts, while ETF options surged 23.6% to 438,481,707 contracts, and index options increased by 9.7% to 92,352,497 contracts. The year-to-date average daily volume (ADV) for total options also increased significantly, up 24.0% compared to the same period in 2024. Futures volume, however, declined by 26.0% year-over-year, though year-to-date ADV for futures edged up 1.9%.
In the securities lending segment, the average daily loan value in May 2025 increased 7.5% year-over-year to $170.85 billion, while the total number of transactions rose 31.17% to 315,169. This reflects heightened activity and demand in both the options and securities lending markets compared to the same period in the previous year.
Trader TV has a video interview with Morgan Stanley/E*Trade's Christopher Larkin from the Options Industry Conference. It is good to see Larkin in front of the camera, even if Trader TV is a competitor. ~JJL
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| Lead Stories | Expanding Access to Cryptocurrency with Cboe's New Spot Bitcoin ETF BuyWrite Indices
Cboe
As the use of digital assets continues to evolve, Cboe is building upon its derivatives expertise to help market participants gain access to digital assets through familiar tools. As part of its effort to grow this ecosystem, Cboe recently launched its first suite of BuyWrite indices on a spot bitcoin Exchange Traded Fund (ETF). These indices are the first option-based indices in the market that track the performance of systematic covered call strategies on a spot bitcoin ETF. The underlying of the ATM and OTM indices is the Grayscale Bitcoin Trust ETF GBTC. They are part of Cboe's efforts to bring traditional options-based income strategies to the digital asset market, offering market participants new avenues for accessing cryptocurrency exposure while managing risk.
/jlne.ws/4mMfKoX
Traders Load Up on Hedges Against Dramatic Fed Rate Cut Shifts
Edward Bolingbroke - Bloomberg
Traders are ramping up bets that hedge against dramatic shifts in the Federal Reserve's interest-rate path as questions on the economic impact of Trump's administration evolving policies persist. Overall, the swaps market continues to price in two rate reductions this year beginning in October. However, the uncertainty surrounding the outlook for the US economy has pushed traders in the options market to buy protection for a wider range of outcomes, from the possibility of no rate cuts at all, to a series of half-point reductions before the end of 2025. Goldman Sachs and Citigroup have also taken opposing views on when the Fed will start easing.
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The Bull Market Is Being Powered by Stocks Outside the US; Global equities top record highs for the first time since February.
Phil Serafino and Sagarika Jaisinghani - Bloomberg
The never-ending back and forth on tariffs. An escalating war in Ukraine. Growing concern about the US's mounting debt and deficits, and a congressional budget process that seems unlikely to address the problem.
Sounds like a recipe for a bear market, and yet global stocks just hit an all-time high. The MSCI All-Country World Index is up 5.6% this year, surpassing its record from February.
/jlne.ws/4dRg81p
Trump-owned Truth Social files for Bitcoin ETF
Anand Sinha - The Street
NYSE Arca has submitted a proposed rule change to the Securities and Exchange Commission (SEC) under Rule 8.201-E to list and trade the Truth Social Bitcoin exchange-traded fund (ETF), a filing on June 4 mentioned. Truth Social is a social media platform owned by Trump Media & Technology Group, or TMTG (Nasdaq: DJT), the media and tech company majority-owned by President Donald Trump.
/jlne.ws/3ZiJYG6
Wedbush's Dan Ives Joins ETF Wave Turning Analysts Into Brands
Vildana Hajric - Bloomberg
Wall Street tech analyst Dan Ives is lending his personal brand to power a new ETF riding the artificial-intelligence boom, joining a growing pack of finance names looking to monetize their industry renown with retail-friendly investment funds. Wedbush Fund Advisers is launching a product tracking the investment picks touted by Ives, whose high-conviction tech calls have earned him a sizable following among the likes of retail investors.
/jlne.ws/4kIY2ki
How Wall Street's Dream of Looser Capital Rules Is Edging Closer
Alex Harris and Katanga Johnson - Bloomberg
US President Donald Trump kicked off his second term promising to slash regulation. There are growing signs that this push to streamline the federal rulebook could fulfill one of Wall Street's longstanding wishes: an easing of capital requirements for banks, specifically the supplementary leverage ratio.
The SLR was introduced in the wake of the 2008 global financial crisis to ensure banks hold a certain amount of capital relative to their assets. But many in the financial sector argue that this rule has limited banks' purchases of safer instruments like US Treasuries, as well as their ability to act as brokers to help other investors trade these bonds.
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| Exchanges | Inside Cboe's Derivatives Vision: A Conversation with Catherine Clay
Anna Lyudvig - Traders Magazine
As Executive Vice President and Global Head of Derivatives at Cboe Global Markets, Catherine Clay leads a dynamic and far-reaching strategy across the Exchange's global options and futures businesses. By uniting innovation, education, data, and execution under one umbrella, Clay is helping scale Cboe's capabilities across regions while expanding access to its products and expertise. In this interview with Traders Magazine, she shares insights into her leadership journey, the evolving trends in derivatives, the growing role of crypto products, and how she's working to shape a more inclusive future in finance.
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Farmer sentiment reaches a four-year high in May
CME Group
Farmer sentiment improved for the second consecutive month in May, reaching its highest level since May 2021. The Purdue University/CME Group Ag Economy Barometer rose 10 points to a reading of 158, up from 148 in April. Both the Index of Current Conditions and the Index of Future Expectations contributed to the increase, with the current conditions index up 5 points to 146 and the future expectations index jumping 12 points to 164. The sentiment boost was driven by a more optimistic outlook on U.S. agricultural exports and a less negative view of how tariffs will impact farm income in 2025. The May barometer survey took place May 12-16.
/jlne.ws/4ktmu9I
Software Error Forces MIAX Sapphire Exchange to Bust Trades
Bernard Goyder - Bloomberg
Exchange operator Miami International Holdings, Inc. had an operational snafu on Tuesday causing one of its four options exchanges to shut down and forcing transactions to be torn up. MIAX had to shutter its newest exchange, MIAX Sapphire Options, for about 2 hours and 40 minutes, and cancel all trades transacted in a quarter of an hour period between 11:18 a.m. and 11:33 p.m., according to its website.
/jlne.ws/4kBd5wP
CME Sets New May ADV Record
CME Group
CME Group, the world's leading derivatives marketplace, reported it reached the highest May average daily volume (ADV) on record at 28.9 million contracts, an increase of 11% year-over-year. Market statistics are available in greater detail at https://cmegroupinc.gcs-web.com/monthly-volume.
/jlne.ws/4mDvaM6
Reminder: SPAN Files Decommission on FTP Sites on July 14 - Effective July 14, 2025
CME Group
This is a reminder of CME plans to stop publishing all SPAN files on FTP sites effective July 14, 2025. Following the CME Notice published March 12th, CME Group will provide SPAN files only via the SFTP and CME Datamine services. SPAN files will no longer be available over the public FTP or CME Group website.This change applies to CME Group SPAN files as well as partner exchanges SPAN for BMD, XMA, SMX, CFE ... etc.
/jlne.ws/3T5MKLb
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| Technology | Sterling launches overnight global trading in US NMS equities; 24x5 capability available via Blue Ocean Technologies
Sterling Trading Tech
Sterling Trading Tech (Sterling), a leading global provider of technology in order management, risk and margin, and trading, today announced the launch of 24x5 global trading in US National Market System (NMS) equities. Through Sterling OMS, clients can now trade overnight via Blue Ocean ATS. This marks the latest milestone in Sterling's ongoing global expansion strategy. On the product front, Sterling continues to enhance its OMS, risk, and trading capabilities. These now span multi asset classes, including US and international equities and options, futures, fixed income, mutual funds, FX, and crypto.
/jlne.ws/3SAM28A
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| Education | The Premium Game
tastylive (Video)
Tom and Tony provided a clear and relatable explanation for their strong emphasis on selling premium in options trading. They illustrated how option sellers often benefit from a long-term profitability edge, comparing the strategy to the business models of insurance companies and casinos-both of which succeed by managing risk in exchange for consistent returns. They also emphasized the advantages of being a premium seller, particularly how it aligns with the fundamental trade-off between risk and reward.
/jlne.ws/43tF7Et
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| Miscellaneous | From Chef to Options Industry Leader: Get to Know Meaghan Dugan
Cboe
From her days in culinary school to options market making, Meaghan Dugan, now Senior Vice President, Head of U.S. Options, has always let her curiosity drive her actions.
Meaghan's career started off in culinary science as she pursued dreams of becoming a chef. While she was in California looking for culinary work, a friend who worked on the Pacific Stock Exchange's options trading floor suggested she explore an entry level position on the floor. Meaghan went to visit as both trading floors and tense kitchens have similar qualities. Plus, the Exchange often recruited people with a background in culinary arts.
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