| April 28, 2023 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Have Zero-Dated Options Broken VIX?
Steve Sosnick - Traders' Insight
I receive all sorts of questions during any given week, but two options-related themes seem to be the most pressing: what are the risks of so-called "zero-dated" or "0DTE" options; and is the Cboe Volatility Index (VIX) "broken"? Yet I've rarely had anyone ask me to consider the relationship between them. Well, whether or not you're asking, I'll address that point today.
/jlne.ws/424mBPh
****** You can't break the VIX, you can only stretch it.~JJL
What's the deal with the VIX? Stock market volatility gauge hits 18-month low
William Watts - MarketWatch
A U.S. debt-ceiling showdown, recession fears and persistent banking jitters weren't getting stock-market investors worked up on Friday. Major indexes were set to end April on a positive note, while the Cboe Volatility Index VIX, -5.99%, closely watched measure of expected stock-market volatility fell to a nearly 18-month low.
/jlne.ws/424dn5J
Institutions Boost Options Trading
Traders Magazine
Institutional buy-side firms are much more comfortable trading options compared with a decade ago, driven by greater awareness and education that has diminished the perception that options are inherently and overly risky.
The uptake has been partly driven by the boom in retail options trading.
/jlne.ws/3LgpqGq
Leveraged Finance Deals Are Making a Comeback as Markets Calm
Claire Ruckin and Jill R Shah - Bloomberg
April saw the leveraged finance market spring back into life, as borrowers seized on calmer markets and pent-up investor demand to do deals.
Recent issuance of loans and high yield bonds in Europe made for the busiest two-week period since February last year, according to data from Goldman Sachs Group Inc. And in the US, there's been more than $22 billion in loans launched by companies this month, compared with just $8 billion in March, according to data compiled by Bloomberg.
/jlne.ws/3AzXh8a
A Stock Market Plunge Will Resolve the Debt-Ceiling Standoff
Randall W. Forsyth - Barron's
"Sell in May" could be more than a cliché this year. A summer of discontent may lie ahead for the financial markets, in no small part because of yet another fight over raising the federal government's debt ceiling. But, ironically, a possible market meltdown might be just what's needed to get Congress and the White House to make a deal to stave off the first default on the full faith and credit of the U.S.
/jlne.ws/3oQw4LQ
The Federal Reserve Has No Good Choices. Why More Pain Is Coming
Megan Cassella - Barron's
Since the Federal Reserve first kicked off its inflation-fighting campaign 15 months ago, it has raised interest rates nine consecutive times and wound down its pandemic-era bond-buying program, notching the fastest pace of monetary policy tightening in four decades. So far, it has achieved a balance that its critics thought nearly impossible, cutting headline price growth nearly in half while keeping the U.S. economy humming.
/jlne.ws/40ME51I
Meme stock TOP Financial Group soars more than 890%, spurred on by the Reddit crowd
Ciara Linnane - MarketWatch
The stock of TOP Financial Group Ltd., a Hong Kong-based broker that went public last year, soared more than 890% Friday to a fresh record high with no apparent news to drive the move.
Volume of 5.5 million shares traded by early afternoon far exceeded the average daily volume of 872,000 over the last 65 days. The stock TOP, 489.25% was halted for volatility multiple times during the session.
/jlne.ws/3LBAT4y
| | | | | | Exchanges | | | OCC Publishes 2022 Annual Report: Resilience in a Changing World
OCC
On behalf of our colleagues, Management Committee and Board of Directors, we are pleased to share our 2022 Annual Report. Inside you'll read about OCC's continued commitment to excellence and innovation while fulfilling our duties as a Systemically Important Financial Market Utility. New to the report this year is our Diversity, Equity and Inclusion section where our leaders and colleagues discuss the tremendous growth and evolution of our DEI initiatives since we added DEI as one of our six core values in 2020.
/jlne.ws/3Lgg3Xc
MIAX Exchange Group - Options and Equities
Press Release
MIAX will introduce a Member Firm Portal (MFP) API for its options and equity exchanges beginning May, 22, 2023. The MFP API is provided as an internet accessible set of REST services that allows member firms' systems to retrieve and modify data. The API provides functionality allowing member firms to automate the following tasks:
Market Maker Assignment Management for the MIAX Options, MIAX Pearl Options, MIAX
Emerald Options and MIAX Pearl Equities exchanges
Trade Clearing Updates for the MIAX Options, MIAX Pearl Options and MIAX Emerald Options exchanges
/jlne.ws/41YiBzY
| | | | | | Regulation & Enforcement | | | Getting Candid About Candor
FIA
The law surrounding false statements is developing rapidly and expansively, the most recent example of which is the rule proposed by the Federal Energy Regulatory Commission, which would give it wide discretion in enforcing its duty of candor. At the same time, the CFTC is increasing enforcement pursuant to its false statement authority. This webinar will address the metes and bounds of false statement law - for clients and lawyers alike - under the Commodity Exchange Act and practice before the CFTC, as well as practice before the SEC and Department of Justice, and in comparison to FERC's new proposed rule.
/jlne.ws/3nbrFme
Federal Court Orders Former Head of International Binary Options Scheme to Pay More than $561,000 in Restitution
CFTC
The Commodity Futures Trading Commission today announced the U.S. District Court for the Northern District of Ohio entered a consent order on April 27 for a permanent injunction, restitution, and equitable relief against Jared J. Davis, a former resident of Ohio. Davis, at times, conducted business as Erie Marketing, LLC.
/jlne.ws/40LGk5u
| | | | | | Strategy | | | VIX Futures Curve Shifting Higher
Cboe (Video)
In #Vol411, Dan Deming @djd551 covers the $VIX #futures roll market, the VIX Index's lowest level in ~1.5 years and activity in May & July VIX #options expiries. #markets
/jlne.ws/41Q6Agq
| | | | | | Miscellaneous | | | Digital "Chicago Plan" fixes many financial woes
Edward Chancellor - Reuters
Here's a list of some of the great financial problems of the day: governments are overindebted and the cost of servicing that debt is rising; central banks have swollen balance sheets and face losses on securities holdings; commercial lenders are exposed to rising interest rates and to bank runs fanned by social media; financial regulations are plainly not up to the task; inflation is hard to control; and the fate of the euro zone remains in doubt. To cap it all, central bankers are having trouble finding the appropriate interest rate that will bring inflation back under control without simultaneously collapsing the financial system.
/jlne.ws/3oMlSUF
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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
Publisher | | | Sarah Rudolph
Editor-in-Chief
| | | Jeff Bergstrom
Editor
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