| June 24, 2024 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
Corn volatility, as measured by CVOL, along with skew ratio have risen as market participants position ahead of this Friday's Acreage Report. To learn more about CVOL, please visit HERE. | | | | | | Lead Stories | | | Options Market Signals Volatility on French Vote Likely to Last; Traders position for weaker euro against dollar, Swiss franc; French benchmark option volatility premium over Germany soars
Jan-Patrick Barnert, Robert Fullem, and Carly Wanna - Bloomberg
A surprise election in France, a UK vote and a contentious US presidential debate have brought politics to the attention of traders just as summer vacations are getting started.
French voters are going to the polls starting June 30, with UK elections July 4. Before that, US candidates Joe Biden and Donald Trump square off late Thursday ahead of their rematch in November.
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Options Contracts Needed in Crypto Markets
Shanny Basar - Traders Magazine
Arnab Sen, chief executive and co-founder at GFO-X, the UK-based digital asset derivatives trading venue, said large institutions need derivatives, and especially options, on a regulated venue to be confident about entering the crypto market.
Sen spoke on a panel at the FIA IDX conference on 18 June in London. In April last year GFO-X announced a strategic partnership with LCH SA, London Stock Exchange Group's European clearing house to launch a segregated central counterparty clearing service, subject to regulatory approval.
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The real risks for investors after the rise of the European far right; EU and French elections have revived the narrative of a fractured Europe
Silvia Merler - Financial Times
Is the success of far-right politics threatening the European economy and its appeal to international investors?
That is the question investors seem to be asking in the wake of a landslide European election victory for Marine Le Pen's far-right Rassemblement National, French President Emmanuel Macron's surprise call for a snap election, and shock news of an unlikely alliance between parties of the French left.
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The Stock Market's Bears Are in Hibernation. What Happens When They Wake Up; When they finally return, it could give complacent investors a case of whiplash.
Ian Salisbury - Barron's
Short sellers are supposed to keep the market's sunny optimism in check. Lately, these bears have all but disappeared. When they finally return, it could give complacent investors a case of whiplash.
So far, it is shaping up to be a great year for stocks. The S&P 500 has returned 15% so far, exceeding all but the rosiest expectations. In the face of giant gains, short sellers, or investors who bet against the market, are throwing up their hands.
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These Hot New Funds Are 'Boomer Candy' for Retirees; Derivative strategies in ETFs allow investors to chase stock returns while also protecting against a potential market downturn
Jack Pitcher - The Wall Street Journal
Baby boomers who aren't ready to walk away from the stock market are flocking to a hot new class of funds that seek to ease the pain of its swings.
Even as signs of cooling inflation have powered major indexes to new highs, investors have poured billions into exchange-traded funds that use derivatives to produce extra dividend income or protect against losses.
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| | | | | | Exchanges | | | ICE Aims to Clear US Treasuries as Market Regulation Expands; Market operator is latest to seek SEC approval to compete; ICE has operated a credit derivatives clearinghouse since 2009
Katherine Doherty - Bloomberg
Intercontinental Exchange Inc., the market operator and parent of the New York Stock Exchange, is angling to become a central clearinghouse for US Treasuries and repurchase agreements - services required by new regulation for the world's largest debt market.
ICE is laying the groundwork to clear US Treasuries through its existing clearing house, ICE Clear Credit, according to Chris Edmonds, president of ICE's fixed-income and data services. The firm is seeking regulatory approval and is in discussions with the US Securities and Exchange Commission as it prepares its application for review, he said.
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ICE to Launch Treasury Clearing Service to Increase Transparency and Enhance Resilience in the U.S. Treasury Market
Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of technology and data, today announced it will leverage its proven track record and expertise in central clearing and the fixed income market to launch a clearing service for all U.S. Treasury securities and repurchasing agreements. This follows the recent announcement by the U.S. Securities and Exchange Commission (SEC) mandating for the expansion of U.S. Treasury securities clearing to enhance resilience in the market. ICE operates many of the largest clearing houses globally and brings decades of experience in clearing products ranging from interest rates, energy, agricultural and equity derivative futures and options, as well as credit derivatives. The new Treasury clearing service will leverage ICE's existing clearing house, ICE Clear Credit, which is the leading global clearing house for credit default swaps (CDS).
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SIX Is Committed to Tomorrow's Cash Supply; SIX is in active dialog with the banks about ATMs and is significantly expanding its cash supply services. Outsourcing solutions and the pooling of ATMs offer banks new and interesting options for efficient ATM operation. For the first time, SIX-branded ATMs are also available on the market. The use of cash in Switzerland has declined significantly in recent years.
SIX
The digitalization of payment transactions and the Covid pandemic have further accelerated this process. Nevertheless, cash remains an important means of payment for many Swiss people in their daily lives. An adequate supply at the national level must therefore ensure the availability of cash at reasonable prices in order to meet the various needs.
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| | | | | | Regulation & Enforcement | | | SEC chair Gary Gensler urges UK to set T+1 transition date; With the global market trend heading towards shorter settlement cycles, SEC chair stresses the need for the UK to kickstart compression plans even if some market participants raise concerns.
Sophia Thomson - The Trade
There is a critical need for the UK to set a date to switch to a T+1 settlement cycle and stick with it, according to US Securities Exchange Commission (SEC) chair Gary Gensler, who has urged decisiveness and even suggested a potential roadmap. "We've seen the benefits first-hand," noted Gensler referencing the early success of the shift in the US, in a speech this week at the Accelerated Settlement in the UK conference. "No doubt, there will be some market participants who raise concerns with meeting whatever date you select.
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Regulatory burden labelled top issue faced within European listed derivatives markets; New report from Acuiti also notes the risk associated with new regulations as being a key concern on the horizon for market participants within the asset class.
Wesley Bray - The Trade
When assessing the top challenges expected to be faced in the next five years, more than half (53%) of respondents ranked regulatory burden as the main issue facing their firm, according to a new report by Acuiti. Regulatory burden has been a key concern for market participants since the Global Financial Crisis in 2008, with the report from Acuiti - in partnership with FIA - adding that new frameworks are 'lengthy and complex', requiring significant resource mobilisation to navigate current regulatory requirements.
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FCA appoints members for the UK Secondary Markets Advisory Committee
FCA
We've appointed the members of our advisory committee on secondary markets for the period June 2024 to June 2026. The UK Secondary Markets Advisory Committee supports our work in wholesale secondary markets in equities, fixed income, foreign exchange, and commodities markets across securities, futures, swaps, and options markets.
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| | | | | | Strategy | | | Economic Data
Cboe
In #Vol411, Joel Hawthorne @louiswinthrop fills us in on this week's economic data, Friday's trading action (option volume was ~17% above recent ADV), and today's most active $VIX and $SPX options.
/jlne.ws/3RLj2eb
| | | | | | Miscellaneous | | | It's the Summer of the Finance Bro; Wall Street men are an unexpected hot commodity in dating; 'you want to be wined and dined'
Hannah Miao - The Wall Street Journal
There was hot girl summer and short king spring. Now, 'tis the season for finance bros. Men working in finance are the latest public fascination. Khrystyna Komarovska, a social-media manager who recently moved to New York, hit the streets in May with a cardboard sign advertising her search for one. "They're hardworking and they're smart," she said in an interview. "It's my type." Wearing pearls and a black suit, her long blond hair in loose curls, Komarovska brandished the sign listing three, very specific criteria.
/jlne.ws/4biCQwD
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