| April 29, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
Cboe Chairman, CEO and President Ed Tilly's Boca Update Reflects on Growth of Exchange Group and Readiness for Integration
JohnLothianNews.com
Ed Tilly was happy to be back at the FIA Boca International Derivatives Conference in March to see industry friends, clients and competitors he had not seen since the pandemic hit in 2020. He said he appreciates the conference as an opportunity to catch up with happenings in the industry and with regulators.
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| | | | | | Lead Stories | | | OCC Publishes 2021 Annual Report
OCC
On behalf of our colleagues in Chicago, Dallas and Washington, D.C., we are pleased to share our 2021 Annual Report. Inside you'll read about the efforts and investments we've made to transform the way we approach our responsibilities and to enhance our financial and operational resiliency. We're proud of the collective accomplishments we've achieved while working together with our participant exchanges and clearing member firms, evidenced by Risk Magazine recently honoring us as its 2022 Clearing House of the Year. A letter from our Executive Chairman Craig Donohue details our progress over the past several years as well as how we're continuing to move the industry forward.
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The Real Enemy; Managing both volatility and risk in uncertain times.
Christine Benz - Morningstar
Volatility has surfaced with a vengeance so far in 2022. On Tuesday, U.S. stocks logged their biggest one-day loss since 2020 as investors fretted about inflation and whether technology company earnings growth would help justify their still fairly lofty valuations. Owing to a crazy quilt of these and other issues, including rising interest rates and supply chain concerns, the Morningstar U.S. Equity Index has dropped about 13% for the year to date, and the technology-stock-heavy Nasdaq Composite index has logged losses of nearly 20%.
/jlne.ws/3kkAOE6
Earnings Exacerbate Stock Market Volatility Whipped Up by Fed
Vildana Hajric - Bloomberg
Wild swings have been a hallmark of the U.S. stock market all year. It's only gotten worse during the latest earnings period.
Stocks rallied as much as 3% Thursday on the back of strong results from technology heavyweights. Meta Platforms Inc. surged 18%, while PayPal Holdings Inc. and Qualcomm Inc. each jumped more than 10% just two days after gloomy outlooks led to the biggest market selloff in seven weeks. In late trading Amazon.com Inc. plunged 10% and Intel Corp. lost 5% after disappointing forecasts.
/jlne.ws/3y2olg9
Day Trading: Retail Investors Back Driving Records in One Stock-Market Corner
Denitsa Tsekova - Bloomberg
The meme-stock era may be over, but day trading in one corner of the stock market is hitting pandemic records.
Transaction volumes in a controversial breed of leveraged ETF hit an all-time high this week as retail and institutional investors alike surfed the intense U.S. equity turbulence. The number of shares changing hands in the $17 billion world of inverse exchange-traded funds hit seven-times the average of the past five years on Wednesday, according to data compiled by Bloomberg.
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Market volatility, balance sheet surprises raise risk of bumpy Fed pivot
Howard Schneider - Reuters
The Federal Reserve is expected to approve plans next week to reduce a nearly $9 trillion balance sheet that ballooned as part of its efforts to fight the pandemic recession, in a process U.S. central bank officials expect to run without a hitch.
The past week may point to a bumpier ride ahead, with analysts noting an unexpected, nearly $500 billion shift in the Fed's balance sheet driven by factors beyond its control and volatility in stock and bond markets as signs the central bank's pivot to tighter monetary policy may not run so smoothly.
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Cboe completes integrations of triple acquisition, turns focus on risk and analytics
Rebecca Natale and Nyela Graham - WatersTechnology
Two years ago, Cboe Global Markets announced a rare dual acquisition of risk analytics provider Hanweck and FT Options, a portfolio management system combining risk and volatility analytics, then shortly thereafter rounded off its buying spree with the purchase of Trade Alert, a real-time alerts and order flow analysis provider.
/jlne.ws/3vPKLyM
| | | | | | Exchanges | | | Cboe Global Markets Reports Results for First Quarter 2022
CBOE
Cboe Global Markets, Inc. (Cboe: CBOE) today reported financial results for the first quarter of 2022.
"2022 is off to an extraordinary start with Cboe delivering record quarterly results following a record year in 2021. Not only did our core derivatives franchise perform remarkably well during the quarter, but we saw strong contributions from areas like our European cash equities and our Data and Access Solutions businesses, underscoring the power of the flywheel at the heart of Cboe's global value creation model," said Edward T. Tilly, Cboe Global Markets Chairman, President and Chief Executive Officer. "These comprehensive results validate the investments we are making across our ecosystem around the globe. Moving forward, we look to build on our strong foundation with the expected close of the NEO and ErisX acquisitions3, expansion of our SPX Weekly Options product suite and continued growth of our European Derivatives platform. There is a tremendous amount of momentum at Cboe, and I am incredibly proud of the Cboe team's ability to deliver on the company's longer-term aspirations."
/jlne.ws/3kqFc4r
Cboe Near to Closing 'Pivotal' ErisX Acquisition
Shanny Basar - MarketsMedia
Cboe Global Markets' planned acquisition of ErisX remains on track to close very soon, subject to customary closing conditions, which will allow the launch of Cboe Digital with spot trading, data, and clearing capabilities for digital assets and derivatives.
/jlne.ws/3vNPBMO
Risk Management Arrangements in respect of the day following the Birthday of the Buddha
HKEX
All markets operated by the Hong Kong Futures Exchange will be closed for business on 9 May 2022, except MSCI Futures and Options1. In order to assure that safeguards are in place against potential market risks that may arise during the aforesaid period when some of the major markets are open, Participants are kindly reminded to adopt the following risk management measures.
/bit.ly/3MCfJRA
ICE's Global Energy Markets Reach Record Open Interest
ICE
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, today announced that it reached record open interest in its Total Energy futures and options markets of 46.7 million contracts on April 25, and is up 11% since the start of the year.
/bit.ly/3vPJV4Z
Dividend Derivatives: Introduction of further expirations for EURO STOXX Banks Index Dividend Futures
Eurex
The Management Board of Eurex Deutschland and the Executive Board of Eurex Frankfurt AG took the following decisions:
- EURO STOXX Banks Index Dividend Futures (FEBD): Introduction of semi-annual maturities and additional December maturities with effect from 16 May 2022
- Amendment to the relevant Product Specific Supplements to the Liquidity Provider Agreement to reflect the introduction of additional expirations with effect from 1 June 2022.
/bit.ly/39qAxgF
Eurex extends incentive program to switch interest rates swap positions into the EU
Eurex
To support banks and institutional investors in migrating OTC interest rate derivatives positions into the EU, Eurex Clearing has extended its incentive program until the end of 2022.
/bit.ly/38AFUcP
| | | | | | Regulation & Enforcement | | | The FTX US Proposal That Shook Congress And The Crypto Derivatives World
Jason Brett - Forbes
Last month, the Commodity Futures Trading Commission (CFTC) has requested public comment on a proposal from FTX US to modify their Derivatives Clearing Organization (DCO) license to offer a new kind of margin trading to retail customers. This is what is known and described as a 'non-intermediated' model of crypto derivatives trading, meaning there is no intermediary in the form of a Futures Commission Merchant (FCM).
/jlne.ws/3OK9SLV
Bill Hwang case puts prosecutors' market manipulation claim to the test
Stefania Palma - Financial Times
US authorities have dedicated months to amassing evidence to support their claims that Bill Hwang, founder of collapsed family office Archegos Capital Management, used his firm to feed a market manipulation scheme that sent shockwaves across the US securities markets.
/jlne.ws/3KuW1FX
| | | | | | Technology | | | Samuel and Co Trading Release their VIX Trading Algorithm
Yahoo Finance
Samuel and Co Trading are releasing a further license batch of their VIX Trading Algorithm - a highly sought after software tool that trades the volatility Index. The algorithm has been developed to take advantage of the volatility within the Chicago Board Options Exchange's CBOE Volatility Index, a popular measure of the stock market's expectation of volatility based on the S&P 500 index options.
/jlne.ws/3LAurZd
| | | | | | Strategy | | | S&P 500: VIX/VVIX Inflection Indicates Upside Potential
Ashraf Laidi - Investing.com
What's the point of using fancy indicators ratios such as the VVIX/VIX ratio, when you can simply use the VIX, or the S&P 500 itself? You know that I'm a fan of using the VVIX/VIX ratio in helping me spot inflection points in indices, particularly the S&P 500 index.
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| | | | | | Miscellaneous | | | Is Robinhood Mania Over? Trading App Has Lost Millions of Merry Memestock Men
Lionel Laurent - Bloomberg
"Engagement" is a strange metric to see in a broker-dealer's results. But Robinhood Markets Inc. is more than an investment firm. It stands at the intersection of finance and social media â a symbol of the "memestock" boom that galvanized a generation of bored locked-down day traders. But judging by the company's latest figures, the mania is over.
/jlne.ws/37MS0zv
Robinhood's Way Out of the Woods
Telis Demos - WSJ
Short selling hasn't been much help to Robinhood HOOD -0.59% Markets' beleaguered share price. But it could be one key for the company to find some much-needed revenue growth.
Even as the stock languishes, down more than 40% so far in 2022, Robinhood is busy launching new products. So far this year it has introduced a new debit card and extended its trading hours. It has also completed the rollout of its cryptocurrency wallet and listed the popular Shiba Inu coin while jump-starting its overseas expansion by announcing the acquisition of a U.K. crypto app.
/jlne.ws/3KxtH5I
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