| | | | | | | March 31, 2025 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Huge Options Position Just Adds More Fuel to S&P 500 Volatility
Bernard Goyder - Bloomberg
The imminent expiration of a huge option position is intensifying the whipsawing moves in equities markets on Monday.
The $20 billion JP Morgan Chase Hedged Equity Fund - which sells calls and buys put spreads to protect investors against large losses in exchange for capping their gains - rolls over its contracts at the end of each quarter. Most of the time the expiry passes with little notice, as the positions are put on well above and below the current market.
/jlne.ws/3QXMkFS
FX options volume surge as investors juggle tariff risks
Laura Matthews - Reuters
Hedge funds and asset managers have been buying up options on foreign currencies as they look to prepare portfolios for market moves spurred by the Trump administration's tariff policies and after a recent pullback in market expectations for currency volatility.
With Trump expected to implement new reciprocal tariff rates against major trading partners on April 2, demand for FX options, which give investors the right, but not the obligation, to buy or sell currencies at a specified rate, has jumped this year.
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Wall Street's Fear Index Is Surging. A Storm May Be Coming.
Callum Keown - Barron's
Wall Street's so-called fear gauge, the CBOE Volatility Index (VIX), jumped 11% to 23.95 early Monday as global stocks were under pressure from uncertainty around President Donald Trump's tariffs policy. The index, which tracks S&P 500 options and trades, has now surged 28% over the past two days, climbing above the significant 20 level in that time.
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Indians shift to gold investments as local equities flounder; Boom in gold ETFs fuels purchases of asset long loved by domestic investors as prices hit record
Andres Schipani and Arjun Neil Alim - Financial Times
Indians have become heavy investors in gold after a downturn in local equities, with a boom in exchange traded funds driving purchases as the commodity's price hits record highs. Net inflows to gold ETFs in India reached a record Rs37.5bn ($437mn) in January and Rs19.8bn in February as the metal touched all-time highs, according to the Association of Mutual Funds in India.
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Hedge funds are selling off global tech stocks at fastest pace in 6 months, Goldman Sachs says
Beatrice Nolan - Fortune
Hedge funds are rapidly pulling back from global tech stocks, with the heaviest selling concentrated in the semiconductor sector, according to a note from Goldman Sachs. While tech stocks generally are volatile, several factors have put even more pressure on technology companies this year. Hedge funds are reducing their exposure to global information technology stocks at an accelerated pace, with the latest selloff marking the fastest decline in six months, according to a note from Goldman Sachs' Prime Services desk.
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North Sea Oil Swaps Hit Record Volume as Prices Spiked
Alex Longley and Sherry Su - Bloomberg
A record volume of swaps that traders use to hedge benchmark physical oil prices changed hands on Friday as prices jumped, prompting market participants to suggest that one or more traders had been forced to close out big loss-making positions. More than 108,000 so-called Dated to Frontline swaps traded on the ICE Futures Europe exchange on Friday, data from the bourse show. That's the highest since at least 2015, far exceeding 68,000 contracts that were transacted in June last year.
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| | | | | | Exchanges | | | NYSE Texas Opens for Business
ICE
The New York Stock Exchange, part of Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of technology and data, today announced that NYSE Texas is officially open for business, becoming the first securities exchange to operate in Texas, with Trump Media & Technology Group as the first new company to join the NYSE community through a listing on NYSE Texas. "We are thrilled to open NYSE Texas to corporate issuers and to welcome Trump Media & Technology Group to our NYSE community through a NYSE Texas listing," said Lynn Martin, President, NYSE Group. "This new offering, which we announced just last month, will allow companies to capitalize on the pro-business dynamics in Texas. We applaud Trump Media, Governor Abbott and the state of Texas on their commitment to supporting the innovation of U.S. capital markets."
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Coincall Debuts On Top 5 Crypto Options Exchanges, Announces 'Earn While You Trade'
Coindesk (Press Release)
Crypto exchange Coincall has officially entered the Top 5 global crypto options exchanges by trading volume, marking a major milestone just 18 months after its founding. The achievement highlights the platform's rapid growth in a sector that's increasingly drawing both institutional and retail interest.
The surge in performance, according to internal data and third-party analytics, is linked to a successful Q1 strategy that included high-impact marketing campaigns and new product rollouts, in collaboration with notable crypto partners such as SignalPlus, DWF, and Big Candle Capital.
/jlne.ws/4hWGy2i
Cboe Clear Europe begins clearing of European Securities Financing Transactions; Move comes as Cboe seeks to make the trading of Securities Financing Transactions (SFTs) more capital efficient, especially as regards risk-weighted assets.
Claudia Preece - The Trade
Cboe Global Markets has confirmed that Cboe Clear Europe now clears European SFTs in cash equities and ETFs. The first-of-its-kind service transforms the bilateral process for SFTs for these asset classes into a centrally cleared model. Specifically, the service utilises BNY and JP Morgan as tri-party collateral agents, with Pirum serving as the transmitter of new trade instructions and post-trade lifecycle events for clients.
/jlne.ws/3QTn5Ez
Cboe Clear Europe Clears First Securities Financing Transactions
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today announces that Cboe Clear Europe has commenced clearing of European Securities Financing Transactions (SFTs). Natixis Corporate & Investment Banking acted as a Principal Lender against JP Morgan as a Borrower, as part of the first trades cleared through the new service. Cboe Clear Europe has leveraged its position as the largest pan-European clearing house for cash equities to bring this first-of-its-kind service to market, which represents a key step in the company's strategy to become a leading multi-asset class clearing house in the region. This service transforms the bilateral process for SFTs in European equities and ETFs into a centrally cleared model, helping to increase the capital efficiencies associated with activities such as securities lending and supporting the growth of this key market. In addition to the firms that have already used the service, a number of others - including banks, asset managers, broker-dealers, and Agent Lenders - have completed final testing in preparation for clearing.
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Awards will be Presented for Best Market Makers 2025
JPX
The Tokyo Stock Exchange, in an effort to improve liquidity in the ETF market, introduced a market making scheme in the ETF market and has been operating it while making improvements. Since 2021, the Best Market Makers Award has been given to market makers who have contributed to the improvement of market liquidity through continuous quoting, and the role of market makers in the market has been widely communicated. We are pleased to announce that this year's award winners have been selected.
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Eurex implements organizational changes to drive future growth
Eurex
Eurex, one of the globally leading derivatives exchanges and clearing houses, today announced organizational changes to support its next phase of growth. By integrating activities across asset classes, Eurex targets to further improve client experience and holistically support future growth opportunities. The changes will take effect on 1 April 2025. Global products and sales teams combined across asset classes: Equity/Index, Fixed Income, Currency and Repo sales as well as business development will be combined into two new departments, which will be central to drive Eurex's growth initiatives going forward. Matthias Graulich will lead the Global Products & Markets team, consolidating all product and market development activities across trading and clearing. Jens Quiram will lead the Global Sales & Marketing department, aligning sales and marketing efforts across all asset classes.
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| | | | | | Regulation & Enforcement | | | CFTC Pulls Advisory on Review of Risks Tied to Digital-Asset Clearing
Lydia Beyoud - Bloomberg
The US Commodity Futures Trading Commission is withdrawing an advisory on the review of risks tied to clearing and trading digital assets. The decision is effective immediately and is intended to make sure that there's no suggestion that "regulatory treatment of digital asset derivatives will vary from its treatment of other products," the agency said in a statement Friday.
/jlne.ws/41QSCgB
CFTC Staff Withdraws Advisory on Review of Risks Related to Clearing Digital Assets
CFTC
The Commodity Futures Trading Commission's Division of Clearing and Risk today announced it is withdrawing CFTC Staff Advisory No. 23-07, Review of Risks Associated with Expansion of DCO Clearing of Digital Assets, effective immediately.
As stated in today's withdrawal letter, DCR determined to withdraw the advisory to ensure that it does not suggest that its regulatory treatment of digital asset derivatives will vary from its treatment of other products.
/jlne.ws/41QSCgB
Early Birds and Night Owls: How Extended Trading Hours are Reshaping U.S. Equities Markets
Cboe
As access expands and global markets have become increasingly interconnected, U.S. exchanges have responded to domestic and international demand by offering extended trading hours. Cboe introduced early hours trading on its EDGX Equities Exchange (EDGXÃ ) from 4 a.m. - 7 a.m. ET in March 2021, and EDGX is now the second largest early hours trading exchange.
/jlne.ws/3DPyrqh
My 2025 Market Prediction Has Already Soured. Why It's Time to Rethink Stocks.
Ben Levisohn - Barron's
When the facts change, I change my mind. And, boy, have the facts changed.
/jlne.ws/4iSewpQ
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| | | Jeff Bergstrom
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