| September 24, 2024 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Here are the most volatile days for stocks before the election, according to the options market; The stock options market is bracing for wild swings on Nov. 6, the day after the U.S. presidential vote. But these days before the election could also see big moves, according to BofA Global Research.
Joseph Adinolfi - MarketWatch
Traders can finally relax a little this week as the calendar for U.S. corporate earnings reports and economic data looks relatively light - a welcome contrast to the drama of last Wednesday's Federal Reserve decision.
But they better enjoy the calm while it lasts because the next six weeks until the Nov. 5 U.S. presidential election are littered with potentially market-moving news.
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High-Speed Traders Made $7 Billion in Indian Options Market Boom
Chiranjivi Chakraborty and Ashutosh Joshi - Bloomberg
Algorithms helped foreign funds and proprietary trading desks pocket 588.4 billion rupees ($7 billion) in gross profits from trading Indian equity derivatives, a study by the nation's market regulator showed. The bulk of the gains came at the expense of individual traders and others, who lost a combined 610 billion rupees dabbling in stock futures and options in the financial year ended March, according to the study published Monday.
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Traders Buy Bullish Chinese ETF Options Before PBOC Briefing
David Marino - Bloomberg
Investors snapped up bullish options on exchange-traded funds tracking Chinese equities as shares gained on speculation that the government will increase stimulus to bolster economic growth.
Chinese authorities announced plans for three top financial regulators including the People's Bank of China to hold a briefing on the economy. Also, the central bank lowered a short-term policy rate. Disappointing economic data last month increased concern that China could miss its yearly growth target without additional support.
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Will Bitcoin ETF Options Send the Asset to the Moon?; While excitement online for the approval was palpable, there's debate around just how bullish Bitcoin options could be.
Andrew Throuvalas - Decrypt
There will soon be a regulated options market for U.S. Bitcoin ETFs. But what does that mean, and how will this impact the price of Bitcoin?
On Friday, the U.S. Securities and Exchange Commission (SEC) greenlighted Nasdaq to list and trade options for the iShares Bitcoin Trust-BlackRock's $22 billion Bitcoin ETF whose shares track the price of Bitcoin. According to analysts, introducing options will make Bitcoin a more functional investment asset across the board.
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Bitwise Executive Says 'Things Will Likely Get Wild' After Bitcoin ETF Options Launch - Here's Why
Daily Hodl
Bitwise executive Jeff Park thinks "things will likely get wild" now that the U.S. Securities and Exchange Commission (SEC) has approved options on BlackRock's Bitcoin (BTC) exchange-traded fund (ETF).
Last week, the SEC greenlit accelerated approval for the listing and trading of options on the iShares Bitcoin Trust (IBIT), BlackRock's ETF.
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Treasuries Have Been Volatile. The Election Could Keep It That Way.; The Fed's rate cuts should help calm government-debt markets, but Nov. could bring it roaring back.
Patti Domm - Barron's
Now that the Federal Reserve hasâEUR¯ finally cut interest rates that should take some of the volatility out of the bond market, but it could come roaring back depending on the outcome of the election.
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China Stock Pickers Lose $312 Billion of Assets in Shift to ETFs; Surge in index-tied products has China catching up with the US; New passive fund launches have exceeded active equity funds
Bloomberg News
A relentless slump in Chinese equities has pushed star money managers out of jobs, left investors saddled with losses and driven a 40% drawdown in active fund assets from their peak. Yet one corner of the market has been booming. Exponential growth in exchange-traded funds has made passive investing an influential force in the $8.1 trillion stock market, with such products now accounting for about 45% of all equity-focused fund assets. The ratio has doubled in just three years and is fast catching up with the US, where passive equity strategies command 58% of market share after overtaking the active ones in 2019.
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Big hedge funds' share of industry hits 8-yr high, says Bank of America
Nell Mackenzie - Reuters
The largest players now make up about three-quarters of the hedge fund industry, as the likes of multi-strategy firms have taken up the lion's share of the business, said a Bank of America report seen by Reuters on Tuesday. Hedge funds that manage more than $5 billion in assets grew their industry share to 73% by the end of the second quarter of 2024, up from 65% in 2018, according to the report, which was sent to clients on Monday.
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SSGA launches first actively managed corporate and municipal target maturity ETFs in the US; Named SPDR SSGA MyIncome ETFs, the suite is made up of 14 actively managed target maturity ETFs with various maturity years ranging from 2026 to 2034.
Wesley Bray - The Trade
State Street Global Advisors (SSGA) has launched the first actively managed corporate and municipal target maturity bond ETFs in the US market. Named SPDR SSGA MyIncome ETFs, the suite looks to offer investors the ability to build their own custom bond ladder portfolios to manage their respective cash flow, interest rate risk, and liquidity needs.
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| | | | | | Exchanges | | | How the Cboe Ecosystem Unlocks Opportunities for the Markets
Adam Inzirillo - Cboe
Of all the things that make Cboe unique, the interconnectedness of our ecosystem may be my favorite. We operate exchanges across asset classes and around the world, and provide indices, market data and analytics that cover it all. No piece of our ecosystem exists in a silo.
I have a special appreciation for this ecosystem in my role leading our Global Data and Access Solutions business. Data and Access Solutions is the thread connecting Cboe's asset classes and geographies - fueling innovation, introducing investors to new markets and strengthening the ties between our cash and spot markets and our derivatives markets.
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Cboe's New Protocol Shows Cross-Pollination Between Europe & US
Shanny Basar - The Trade
Cboe BIDS VWAP-X, a trading service allowing participants to source and match liquidity at a forward benchmark price is due to launch in Europe before it is extended to other geographies. The service is scheduled to launch on 21 October 2024, subject to regulatory approvals.
Natan Tiefenbrun, president, North American and European equities at Cboe Global Markets, said in a statement: "We're excited to be bringing this first-of-its-kind service to the European equities market and help enhance execution outcomes for end investors."
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MCX revises transaction fees for futures & options after SEBI directive; MCX said the new transaction fees align with a SEBI directive which called for a "True to Label" principle, meaning that the fees charged to clients by members must match what the Exchange charges.
Poonam Behura - CNBC TV18
The Multi Commodity Exchange of India (MCX) has announced a revision in transaction fees for futures and options contracts, effective next month. The new fees will be 2.10 per lakh of turnover for futures and 41.80 per lakh of premium turnover for options.
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TradeStation Securities Announces Collaboration with QuantConnect; TradeStation Expands Algorithmic Trading Capabilities with QuantConnect API Integration
TradeStation Securities, Inc.
TradeStation Securities, Inc. ("TradeStation Securities"), an award-winning*, self-clearing online brokerage firm for trading stocks, options, futures, and futures options, announced its collaboration with QuantConnect, an open-source algorithmic trading platform, offering powerful solutions for quant investors. TradeStation Securities, a multi-asset class broker-dealer and futures commission merchant with institutional-grade tools and personalized services, offers connectivity for trading in equities, equity options, and futures via the QuantConnect platform. This integration allows mutual customers to create and automate their trading strategies via the QuantConnect platform while executing trades, via an API connection, through their TradeStation Securities brokerage account.
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| | | | | | Regulation & Enforcement | | | Deutsche Boerse and Nasdaq Raided in EU Cartel Probe; Companies say they were targeted by EU antitrust inspection; Says they fully cooperate in probe EU announced Monday
Samuel Stolton - Bloomberg
Deutsche Boerse AG and Nasdaq Inc said they were raided by European Union antitrust watchdogs who suspect the firms may have been involved in a cartel related to "financial derivatives." A Deutsche Boerse spokesperson confirmed that the company was hit by the EU's unannounced inspections on Monday, and that it is "fully cooperating" with the probe. A Nasdaq spokesperson said that it is "committed to fully cooperate" with the EU and "support the relevant authorities with the investigation"
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***** Here is the Financial Times version of this story.~JJL
Standard Chartered takes investors to court in Libor transition test case; Legal battle over how UK-based bank pays its dividend
Owen Walker - Financial Times
Standard Chartered is taking legal action against several of its own investors, including a hedge fund run by DE Shaw, in what is seen by legal experts as a test case over the transition from the scandal-ridden Libor interest rate. The legal battle, which is due to be heard in London's High Court of Justice this week, could set a precedent for other companies' investor payouts.
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| | | | | | Strategy | | | Markets experience volatility as investors waffle between hard- and soft-landing scenarios
Gordon Gottsegen - MarketWatch
The stock market has seen a notably volatile few months recently, and investors have been along for the ride.
The Wells Fargo Investment Institute believes this volatility has to do with the fact that investors have been weighing both hard- and soft-landing scenarios as the Federal Reserve continues its fight against inflation.
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| | | | | | Miscellaneous | | | Trump-Harris Betting Markets Are Nearing $1 Billion in Bets. They Could Be Shut Down Soon.
Jacob Adelman - Barron's
The 2024 U.S. election could be a new high water mark for political betting markets-or the beginning of the end for the prediction exchanges.
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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
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| | | Jeff Bergstrom
Editor
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