| July 05, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
Paul McLaren of Enhance Your Options talks with JLN about going from theory to practice in options education
JohnLothianNews.com
JLN spoke with Paul McLaren, the president of Enhance Your Options, at the OIC Conference in Nashville in April. He talked about his background in and passion for education and how he started a training company specifically for options education.
Watch the video »
| | | | | | Lead Stories | | | OCC Clears 962.6M Contracts in June 2023, up 19.4% Year-Over-Year
OCC, the world's largest equity derivatives clearing organization, announced today that year-to-date average daily volume through June 2023 was 44.7 million contracts, up 8.7 percent compared to year-to-date average daily volume through June 2022. Total volume was 962.6 million contracts, up 19.4 percent compared to June 2022.
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DRW to break into Hong Kong market for first time with new trading desk; New desk will initially focus on options, cash equities and futures, with plans to expand into other asset classes in the future.
Annabel Smith - The Trade
Market maker DRW Holdings is set to expand into the Hong Kong market for the first time with a new trading desk, The TRADE can reveal. The firm is currently in the process of gaining a financial services license from Hong Kong's Securities and Futures Commission (SFC) and exploring exchange membership options with Hong Kong Exchanges and Clearing (HKEX) to begin market making in index futures and options and cash equities towards the end of this year.
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Singapore Struggles to Fix Power Market After Wild Price Swings
Isabel Kua and Stephen Stapczynski - Bloomberg
Singapore is struggling to attract new players to its volatile power market, threatening to unwind reforms aimed at boosting competition and reducing electricity bills for consumers.
Surging spot power prices over the last two years prompted an exodus of retailers, after it became unprofitable to continue operations. The nation's regulator introduced a price cap last month to help tame these wild price swings, but participants are calling for more action to help revive the fledgling futures market.
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Chinese companies rush for hedging as market volatilities spike
Reuters
Chinese listed firms are embracing hedging at a record pace, according to consultancy data, as market volatility rises and China grows its derivative market.
During the April-June period, more than 120 China-listed companies in non-financial sectors unveiled plans for the first time to hedge risk using tools such as options and futures, the most for any quarter.
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Out-of-sync U.S. stocks hide market risks
Saqib Iqbal Ahmed - Reuters
U.S. stocks' tendency to move in sync has plunged to near-record lows, but what might seem like a stock picker's dream may actually be a mirage, and investors may be in for a rude awakening.
S&P 500 correlation - a gauge of herd behavior, which measures how closely daily returns of index constituents align over a month - slipped to 0.22 at the end of June, close to the lowest since November 2021, according to data from S&P Dow Jones Indices. That means that many stocks are moving in different directions.
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Farmer sentiment rebounds on more optimistic view of future
CME Group
The Purdue University/CME Group Ag Economy Barometer index improved in June, rising 17 points to a reading of 121. The upswing in sentiment was driven by producers' more optimistic view of the future; however, their perception of current conditions remained unchanged from May. The Index of Future Expectations rose 25 points to a reading of 123, while the Index of Current Conditions held flat at a reading of 116 in June. The Ag Economy Barometer is calculated each month from 400 U.S. agricultural producers' responses to a telephone survey. This month's survey was conducted between June 12-16.
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MSIM revived RMB options activity in Q1
Joe Parsons - Risk.net (Subscription)
Morgan Stanley Investment Management increased its US dollar/Chinese renminbi options position during the first quarter of 2023, in a sign the firm may be restarting its RMB hedging strategy.
The largest portion of MSIM's trades were executed with JP Morgan and Standard Chartered, taking the fund manager's RMB position from $5.2 billion in Q4 to $7 billion, according to quarter-end filings made to the US Securities and Exchange Commission and aggregated by Risk.net's Counterparty Radar service
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| | | | | | Exchanges | | | CME Group Reports Second-Highest June and Q2 ADV on Record
CME Group
SOFR futures and options continue strong growth; Record Agricultural ADV in June
Double-digit Q2 volume increases in options, agricultural and metals, as well as many individual products.
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June 2023 figures at Eurex
Eurex
Repo volumes nearly doubled to EUR 379 billion; Strongest growth again in daily GC Pooling with volumes rising 138 percent in June y-o-y; Notional outstanding in OTC Clearing up 23 percent. Eurex, Europe's leading derivatives exchange, reports a 14 percent decrease in total trading volume to 182.1 million contracts in June from 210.9 million contracts in the same month last year. Interest rate derivatives decreased by 12 percent year-on-year in June from 82.0 million to 72.1 million traded contracts.
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Moscow Exchange starts trading in premium currency options
MOEX
On July 3, 2023, trading in premium options for the currency pairs "US dollar - Russian ruble", "Euro - Russian ruble" and "Chinese yuan - Russian ruble" will begin on the derivatives market of the Moscow Exchange. Premium currency options allow investors to earn on changes in currency rates without the need to purchase it on the spot market, as well as to hedge currency risks with minimal costs. Previously, only option contracts for settled futures on currency pairs were available to trading participants and their clients.
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| | | | | | Regulation & Enforcement | | | US SEC says Bitcoin ETF applications inadequate: WSJ
Pradipta Mukherjee - Forkast
The U.S. Securities and Exchange Commission (SEC) said the recent series of spot Bitcoin exchange-traded fund (ETF) applications by asset managers were inadequate and not sufficiently clear, according to a report by the Wall Street Journal on Friday. The SEC has informed exchanges Nasdaq and Cboe Global Markets, which filed the applications on behalf of the asset managers, that the applications are not clear and comprehensive, according to the WSJ report, which cited people familiar with the matter.
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SEC Says Spot Bitcoin ETF Filings Are Inadequate; Regulator tells Nasdaq, Cboe that applications from BlackRock, Fidelity and others aren't clear and comprehensive
Vicky Ge Huang - The Wall Street Journal
The Securities and Exchange Commission said a recent wave of applications filed by asset managers to launch spot bitcoin exchange-traded funds are inadequate, according to people familiar with the matter. The agency informed exchanges Nasdaq and Cboe Global Markets, which filed the applications on behalf of asset managers including BlackRock and Fidelity Investments, that they aren't sufficiently clear and comprehensive, the people said.
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SEC Pushes Back Against Fidelity, BlackRock Spot Bitcoin ETF Filings; Cboe confirmed that it will refile on the behalf of Fidelity; Bitcoin has jumped in value amid latest wave of ETF filings
Katherine Doherty and Lydia Beyoud - Bloomberg
The US Securities and Exchange Commission is pushing back against a wave of filings by asset managers to launch the first US exchange-traded fund that invests directly in Bitcoin, saying the applications lack clarity and further information is needed before they're considered for approval.
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Fidelity, Other Bitcoin ETF Applications Refiled by Cboe to SEC
Dave Liedtka - Bloomberg
Cboe Global Markets Inc. on Friday filed proposals with the US Securities and Exchange Commission for Bitcoin exchange-traded funds to be offered by Fidelity Investments, VanEck, WisdomTree and Invesco. The filings followed earlier comments from the SEC that previous applications were not going to be considered sufficient. Rule filings are not effective until approved by the SEC, the exchange company said in a statement Friday.
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Coinbase surges after Cboe names crypto exchange in bitcoin ETF application
Chibuike Oguh - Reuters
Shares of Coinbase, the largest U.S. cryptocurrency platform, jumped 13% on Monday after exchange operator Cboe said it was working with the cypto company in its effort to launch a spot bitcoin exchange-traded fund.
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Britain to set up real-time bond and stock trading record
Huw Jones - Reuters
Britain's financial watchdog proposed a real-time record of stock and bond prices on Wednesday to help investors spot the best deals and improve the capital markets' attraction.
It is the latest in a welter of reforms, many contained in a new law approved last week, to bolster the City of London as a global financial centre, particularly after being largely cut off from the European Union due to Brexit.
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| | | | | | Technology | | | Advanced analytics via Deutsche Boerse A7 Platform; Maximize trading efficiency and improve alpha generation with access to data analytics
CME Group
Leverage the most diverse derivatives order book and trade data offered via Deutsche Boerse's A7 Analytics platform. Gain direct access to flexible analytics tools and benefit from advanced market insights, to further enhance your trading and risk management capabilities.
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| | | | | | Strategy | | | Tech Stocks Rising
Cboe (Video)
In #Vol411, @JoeTigay talks about #trading in the dog days of summer, A.I., #recession prospects and the big tech stocks providing support for major indices. $SPX
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| | | | | | Miscellaneous | | | Third Annual Nationwide Bursa Malaysia Derivatives Virtual Trading Challenge
Bursa Malaysia Derivatives Berhad
Bursa Malaysia Derivatives Berhad ("Bursa Malaysia Derivatives" or "the Exchange") will be hosting its third annual nationwide Bursa Malaysia Derivatives Virtual Trading Challenge ("DVTC"). The trading challenge, which will run from 1 August to 30 August 2023, seeks to cultivate millennials and undergraduates' interest in the Malaysian derivatives market by offering a unique hands-on learning experience in derivatives trading.
/jlne.ws/44cwwnl
Hedge funds are bouncing back â but are they better than a simple tracker?
Stephen Foley - Financial Times
When Warren Buffett described hedge fund managers as "an elite crew, loaded with brains, adrenaline and confidence", it was not a recommendation.
In fact, his 2018 letter to Berkshire Hathaway shareholders, in which he used the phrase, was meant to drive a stake through the heart of the hedge-fund industry. This was the year he revealed the results of his bet from a decade earlier that the S&P 500 would trounce a portfolio of hedge funds over a 10-year period: it did, returning 126 per cent. The best of the five funds of hedge funds picked for the other side of the bet managed just 88 per cent over the decade, and the worst returned a dreadful 3 per cent.
/jlne.ws/43j58Tn
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