| March 08, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
John's Take - Hitesh Mittal of BestEx Research on Payment for Order Flow
JohnLothianNews.com
This week comedian and TV star Jon Stewart shined a big bright light on the subject of payment for order flow in equities trading on an episode of his show, The Problem with Jon Stewart. While his take is always entertaining and sometimes impactful, I wanted to share with you another source that has also looked at the subject.
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| | | | | | Lead Stories | | | One Million Options Contracts on Biggest Russia ETF Are in Limbo
Elaine Chen - Bloomberg
The suspension of trading in the world's largest Russia ETF has left the fate of options worth hundreds of millions of dollars hanging.
Cboe Global Markets Inc. halted trading of shares and options in the VanEck Russia ETF (ticker RSX) after the market close Friday as the fallout of the Russian invasion of Ukraine made the fund's underlying securities practically impossible to trade.
/jlne.ws/3hRqZfC
Chinese Tycoon Behind Big Nickel Short Faces Billions in Losses; Xiang Guangda caught out by metal's spectacular rally; London Metal Exchange suspended nickel trading on Tuesday
Alfred Cang and Jack Farchy - Bloomberg
A Chinese tycoon who built a massive short position in nickel futures is facing billions of dollars in mark-to-market losses after the metal surged more than 170% in two days, according to people familiar with the matter. Xiang Guangda -- who controls the world's largest nickel producer, Tsingshan Holding Group Co., and is known as "Big Shot" in Chinese commodity circles -- has closed out part of his company's short position and is considering whether to exit the wager altogether, the people said. Nickel rocketed to a record high above $100,000 a ton on Tuesday, driven in part by Tsingshan and its brokers' activity, before trading was suspended.
/jlne.ws/35A5yNJ
Wall Street Hedge Funds Rush for Exit from Stock Market
Joanna Ossinger and Lu Wang - Bloomberg
As searing cross-asset turbulence threatens to end an epic bull run in equities, fast-money asset managers are reducing risk and getting out.
"De-risking" is the buzzword du jour on Wall Street, where hedge funds and their ilk are cutting positions, selling stocks and covering shorts. So-called degrossing activity in U.S. single stocks has climbed to the highest in a year, according to prime-broker data from Goldman Sachs Group Inc.
/jlne.ws/3MBn58T
Retail Traders Stick to Dip Buying Despite Market Volatility as Pros Flee
Bailey Lipschultz - Bloomberg
The gyrations across equity markets aren't enough to deter individual investors who continue to pile in billions of dollars.
Retail traders bought $1.51 billion of equities amid Monday's rout, bringing the total to roughly $12 billion since Russia's invasion of Ukraine, according to data compiled by Vanda Research. Individuals are betting on a return to recent highs for stocks, stomaching the volatility that's swept across global markets and pushed hedge funds to become sellers.
/jlne.ws/3sSFkyz
Wall Street Traders Surrender to Recession Paranoia in U.S. Stock Market Rout
Lu Wang and Vildana Hajric - Bloomberg
When it's just the yield curve narrowing, or oil jumping, or stocks falling into a correction, maybe you can hold off on panicking over a recession.
When all three happen at once, the argument gets stronger that it's time to take the threat seriously.
/jlne.ws/3hNzIzk
Why This Nasdaq Bear Market Is Likely to Be Different From the Last One
Steve Goldstein - Barron's
Here we go again. On Monday, the Nasdaq Composite entered bear-market territory, dropping 20% from its Nov. 19 peak, the first bear market since the crash at the outset of the Covid-19 pandemic in March 2020.
/jlne.ws/3IWTtQP
Liquidity in commodity markets is 'collapsing' and volatility is making it worse, says Goldman Sachs' head of commodity research
Phil Rosen - Business Insider
Commodity markets continue to see huge moves as conflict rages on in Ukraine, driving crosscurrents in liquidity and volatility, according to the head of commodity research at Goldman Sachs, Jeff Currie.
"Liquidity in these markets [is] collapsing across oil, gas, metals, agriculture," he told CNBC on Tuesday. Part of that is higher volatility discourages investors and market participants, and then the liquidity drops off and volatility gets higher.
/jlne.ws/3sSXpN7
China Asks Banks to Report Derivatives Risk as Markets Reel
Bloomberg News
China asked its biggest financial firms and other state-owned enterprises to report the extent of their exposure to derivatives contracts following wild swings in nickel and other commodities that embroiled one of the country's largest banks.
/jlne.ws/376Wikl
Oil CEOs, Biden Officials Warn Oil Volatility Is Here to Stay
Christopher M. Matthews - WSJ
The chief executives of some of the world's largest oil companies and U.S. government officials warned Monday that there were no quick-fix solutions to the higher energy prices and market volatility that have followed Russia's invasion of Ukraine.
/jlne.ws/35XPrZZ
| | | | | | Exchanges | | | FIA removes the Moscow Exchange from membership
FIA
FIA has announced that its board of directors has voted to remove the Moscow Exchange from FIA's membership, effective immediately, due to circumstances related to the Russian invasion of Ukraine.
/jlne.ws/3vRarwq
Cboe Global Markets Announces Date of First-Quarter 2022 Earnings Release and Conference Call
CBOE
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today said it will announce its financial results for the first quarter of 2022 before the market opens on Friday, April 29, 2022. A conference call with remarks by the company's senior management will begin at 7:30 a.m. Central Time (CT), 8:30 a.m. Eastern Time (ET).
/jlne.ws/3pQfIka
| | | | | | Technology | | | TradeStation Securities Supports Trading of 20-Year U.S. Treasury Bond Futures from CME Group Starting on Day One; The new product offers TradeStation Securities customers efficiency and precision in managing the 20-year maturity point on the U.S. Treasury curve.
TradeStation Group, Inc.
TradeStation Securities, Inc., an award-winning*, self-clearing online brokerage for trading stocks, ETFs, options, and futures, now offers its clients the ability to trade 20-year Treasury Bond Futures from CME Group. TradeStation Securities continues to expand its suite of over 350 futures and futures options products as part of its depth and breadth of offerings to futures traders.
/jlne.ws/3sPP4K4
| | | | | | Strategy | | | Large Ether Options Flow Guards Against Price Slide Below $2.2K
Omkar Godbole - CoinDesk
As ether (ETH) slipped to a 10-day low on Monday, market participants took bets that would offer protection against a deeper slide in the second-largest cryptocurrency.
A single trader or several traders bought more than 36,000 contracts of Deribit-listed ether put option expiring on March 18, of which more than 20,000 were blocked on institution-focused over-the-counter tech platform Paradigm, according to Swiss-based data tracking firm Laevitas. The put option buyers would make money if ether drops below $2,200 by March 18. That's a roughly 13% decline from the current market price of $2,514.
/jlne.ws/3vLSKhT
Volatility ETFs Climb on Stagflation Fears
Nasdaq
The CBOE Volatility Index and VIX-related exchange traded funds spiked Monday as U.S. equities retreated on slowing growth fears in the face of surging crude oil prices and rising inflationary pressures.
On Monday, the iPath Series B S&P 500 VIX Short Term Futures ETN (NYSEArca: VXX) increased 5.3%, and the ProShares VIX Short-Term Futures ETF (NYSEArca: VIXY) advanced 5.6%. Meanwhile, the CBOE Volatility Index jumped 9.4% to 35.0.
/jlne.ws/3i7h8m9
| | | | | | Miscellaneous | | | FIA announces 2022 Hall of Fame inductees; FIA announces 2022 Hall of Fame inductees
FIA
FIA today announced the induction of 10 new members into the FIA Hall of Fame. This year's class joins 165 other honorees in the Hall of Fame, which was established in 2005 on FIA's 50th anniversary. The new members will be honored at an awards ceremony during FIA's annual International Futures Industry Conference in Boca Raton, Fl. Walt Lukken, president and CEO of FIA said: "We established the FIA Hall of Fame to recognize the people who have made exceptional contributions to the growth and development of the futures, options and listed derivatives industry. This year's inductees represent business leaders, advocates, policymakers, and visionaries who have provided the leadership and support necessary to keep our industry growing. We are grateful for their service and honored to present them with this recognition."
/jlne.ws/3MzPD2k
***** Patrick Lothian of John Lothian Productions has been working hard on videos for the Hall of Fame presentation. There is one about each new member and one for the event itself. This is part of the sponsorship deal FIA has with John Lothian & Company, Inc. and part of our contribution to the Hall of Fame.~JJL
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| | | Jeff Bergstrom
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