| July 18, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
Will Mitting, the founder of Acuiti, talks about headwinds and tailwinds in the European Derivatives industry at IDX 2023
JohnLothianNews.com
JLN Correspondent Julie Ros talked to Will Mitting, the founder and managing director of Acuiti, at IDX 2023 in London, about the work he is doing at Acuiti and the biggest issues he is seeing in the European derivatives markets, including fallout from Brexit, the "unwelcome" mandate on where to clear swaps, and IFR capital rules.
Watch the video »
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Trading Technologies CEO Todd and EVP Garrow talk with JLN at IDX London about their vision of TT becoming a multi-asset provider
JohnLothianNews.com
Trading Technologies executives Keith Todd, CEO, and Nick Garrow, EVP multi-asset and buy-side, were interviewed by JLN Correspondent Julie Ros at the FIA International Derivatives Week (IDX) in London recently. Todd and Garrow discussed the company's planned expansion into FX, which was announced at IDX, and the firm's vision of being a multi-asset provider.
Watch the video »
| | | | | | Lead Stories | | | New zero-day options trend is captivating investors
CNBC (Video)
Ed Tilly, CBOE Global Markets CEO, joins 'Halftime Report' to discuss zero days to expiration options contracts, the launch of new ETF options products, and concerns about retail traders making short-term gambles in the market.
/jlne.ws/3rzEJ6V
Options Trader Bets $40 Million That Meta (META) Share Price Will Almost Double
Carly Wanna - Bloomberg
An options trader wagered $40 million that Meta Platforms, Inc.'s 158% rally this year has plenty of room to run.
The spread trade â involving more than 26,000 contracts of call options allowing the buyer to pick up shares at $320 each by Jan. 17, 2025 â was countered by selling about 52,000 of $600 calls expiring in December of that year.
/jlne.ws/46Xv1LR
Hedge funds ease off profitable China FX options trade
Ben St. Clair - Risk.net (Subscription)
The weeks-long foreign exchange options trade profiting on a depreciating Chinese currency may be nearing its end, as Chinese central bank efforts and a recently weakening US dollar have made for a stronger renminbi.
Funds had piled into outright and exotic options structures that capitalised on a low-volatility environment and the renminbi's gradual depreciation against currencies including the dollar. Some may still be holding on to their positions since a slow move downward in US dollar
/jlne.ws/3ruZeBv
First ETF with 100% protection against losses launches in US
Steve Johnson - Financial Times
The world's first exchange traded fund to offer 100 per cent protection against losses launched in the US on Tuesday.
The Innovator US Equity Principal Protected ETF will stretch the increasingly popular "buffered" ETF concept to its limit.
/jlne.ws/44OhSTh
Bitcoin (BTC) ETF Hype Over BlackRock, Fidelity Threatens a Letdown
Vildana Hajric, and Katherine Greifeld - Bloomberg
The best argument in favor of approving new Bitcoin exchange-traded funds is that they already exist, tracking futures. Sadly for the crypto crowd, that's also the best argument for why nobody needs a new one.
Proponents say that the arrival of a US spot ETF would open the floodgates to a new wave of investors, potentially ushering in more than $50 billion of demand. A fresh batch of applications led by asset management titan BlackRock Inc. reignited optimism that the Securities and Exchange Commission may finally give its blessing after more than a decade of denials, powering a 20% Bitcoin rally since mid-June.
/jlne.ws/44udedz
European Gas Market Still Prone to Risks This Winter, IEA Warns
Elena Mazneva - Bloomberg
Europe's natural gas market still faces the risk of volatile prices this winter even though the worst in the continent's energy crisis seems to be over, according to the International Energy Agency.
"Major uncertainties remain ahead of the upcoming heating season," the Paris-based IEA said in a report Monday. "A cold winter, together with a full halt in Russia piped gas supplies to Europe early in the heating season, could easily renew market tensions."
/jlne.ws/3NYdj27
| | | | | | Exchanges | | | OCC Comment on SEC RIN 3235-AN19 Covered Clearing Agency Resilience and Recovery and Wind-Down Plan
Megan M. Cohen - OCC
The Options Clearing Corporation ("OCC") appreciates the opportunity to submit these comments on the above-reference proposal ("Proposal" or "Proposed Rules") under the Securities Exchange Act of 1934 ("Exchange Act"). The Proposal would (i) require covered clearing agencies ("CCAs") to be able to monitor intraday exposure and be able to make intraday margin calls as frequently as warranted; (ii) require CCAs to have alternative sources of data or an alternate risk-based margin system in the event that substantive inputs from third-parties to a CCA's margin system are unavailable; and (iii) define certain required components of each CCA's recovery and wind-down plan ("RWP").
/jlne.ws/43y1zJo
CME Group and DTCC To Increase Cross-Margining Opportunities For The Treasury Markets
DTCC and CME Group
Enhancements to long-standing cross-margining agreement will launch in January 2024, pending regulatory approval; Clearing members will be eligible to gain greater margin efficiencies between U.S. Treasury securities and CME Group Interest Rate futures. CME Group, the world's leading derivatives marketplace, and The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced enhancements to their existing cross-margining arrangement that will increase capital efficiencies for clearing members that trade and clear both U.S. Treasury securities and CME Group Interest Rate futures.
/jlne.ws/3Y0GLsH
Trading in Hong Kong markets halted due to Typhoon Talim
The Economic Times
The Hong Kong stock exchange halted trading in both the securities and derivatives markets on Monday due to approaching Typhoon Talim. The Hong Kong Observatory said storm signal No. 8 would remain in force at least until 4 p.m. (0800 GMT) According to the exchange's arrangement, the morning trading session will be suspended if the typhoon signal remains at 8 or higher at 9 a.m. Hong Kong time (0100 GMT).
/jlne.ws/3NRmilw
| | | | | | Technology | | | Synthetix takes on counterparty risks with Infinex derivatives exchange
Amaka Nwaokocha - CoinTelegraph
Synthetix founder Kain Warwick revealed intentions to introduce a new derivatives front-end called Infinex to the decentralized trading infrastructure of Synthetix. The upcoming exchange will cater to novice and experienced traders by offering features similar to centralized exchanges (CEX), such as a noncustodial central limit order book.
/jlne.ws/3XULRa2
| | | | | | Strategy | | | 3 Options Trades Goldman Sachs Expects to Deliver 500%+ Returns
William Edwards - Business Insider
There's rarely been a better time over the past quarter century to buy stock options, according to Goldman Sachs.
In a July 12 client note, the investment bank said that options prices are historically attractive relative to the probability of price swings in either direction in the month ahead.
/jlne.ws/3K5HUJP
Buy or Sell Options: Which is Better?
Dr. Jim Schultz - tastylive
Should you buy options or sell options? From our perspective at tastylive, selling options is clearly the better choice.
If I buy an option, I need the directional move as measured by delta to be the main driver of my profitability. So, I need to get the move in the stock correct. Otherwise, I'm not going to make money. The other main profit drivers (time as measured by theta and volatility as measured by vega) won't be strong enough to overtake a delta move against me and, generally speaking, theta and vega are working against the options buyer from the beginning.
/jlne.ws/44OSr3V
100K VIX Calls
Cboe (Video)
In #Vol411, Tim Biggam @Delta_Desk on the #VIX futures term structure and brisk #trading in $VIX call #options (~.25 P/C ratio).
/jlne.ws/3XVJFii
| | | | | | Education | | | What Is a Straddle Options Strategy?
Adam Levy - The Motley Fool
The straddle options strategy is a way for traders to take advantage of changes in market volatility. Buying a straddle can profit from a swing in the underlying security price, but it doesn't matter whether it goes up or down. Conversely, selling a straddle will profit when the underlying security stays near the same price until the options expire.
/jlne.ws/3Ojo0gZ
| | | | | | Miscellaneous | | | Acuiti and Go Dharmic team up to launch the Derivatives Industry Christmas Dinner
Acuiti
Acuiti is partnering with humanitarian and environmental charity Go Dharmic to launch a new Derivatives Industry Christmas Dinner in London. The dinner, which will be held on the 6 December at the Royal Horseguards, will bring together around 200 senior derivatives executives from the European market. Acuiti is organizing the event alongside Go Dharmic and will donate all profits from the dinner to the charity.
/jlne.ws/44PKb3S
***** This is a great endeavor but leaves out those Londoners who celebrate Festivus.~JJL
10 reasons why the recession that Wall Street predicted to death never showed up
Joseph Wilkins - Business Insider
But more than six months into 2023, there's still no sign of the much-predicted output contraction. If anything, things are looking pretty upbeat - inflation is rapidly cooling, the job market is holding up, unemployment has hit rock bottom and stocks are ebullient.
Even a deeply inverted bond yield curve, considered a classic warning sign for an impending economic downturn, has had little damping effect on investor sentiment - baffling many in in markets and businesses that have been bracing for the event.
/jlne.ws/44udMA9
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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
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