| August 11, 2022 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | 
Registration is open for FIA Expo taking place this 14-15 November at a new location - the Sheraton Grand Riverwalk Chicago. Experience compelling panels that build your knowledge, product demos that deliver innovative solutions, and networking opportunities that celebrate human connections. Whether you're a trader chasing the latest trends affecting the markets, a back office manager seeking ways to increase operational efficiency or a business strategist looking for what's next, you'll find it at Expo. This year, FIA is offering full conference, single day and exhibits plus registration options. Learn more and register by 2 September for the best rates!
Register HERE
| | | | | | Lead Stories | | | Options Traders Turn to Their Favorite Bet: Tesla
Gunjan Banerji - WSJ
Shares of Tesla Inc. have been on a winning streak lately, jumping 32% this quarter and racing past the S&P 500's 12% gain since then.
The run has heated up the market for Tesla options, which have already been wildly popular in recent years. Trading in bullish call options hit the highest level of the year over the past week.
/jlne.ws/3pbauyv
Single-Stock Funds Are Taking Off. What You Need to Know.
Evie Liu - Barron's
Exchange-traded funds gained dominance in recent decades as they allowed investors to trade thousands of stocks at the same time, and at a low cost. Now, a new breed of ETFs allows investors to make outsize betsâbullish or bearishâon single stock names.
These new products, with risks significantly greater than those of conventional funds, are sending a sign that the appetite for speculation is on the rise.
/jlne.ws/3BYZEmV
Market signals like the 'VIX' indicate this comeback rally may be getting ahead of itself
Jeff Cox - CNBC
A key measure of stock volatility is providing clues that investors should be wary of the recent market rally, according to Data Trek Research co-founder Nicholas Colas.
The CBOE Volatility Index has come off its most recent mid-June highs and now is trading around its long-term average of 20.
/jlne.ws/3p8Q5u9
Benchmark Rate SOFR Has Caught On. But One Version Is Costing Companies More to Hedge
Mark Maurer - WSJ
Companies are paying more to hedge a forward-looking interest-rate benchmark that is being widely used to replace the troubled London interbank offered rate, an added expense that comes as finance chiefs are looking to cut costs.
Benchmark rates such as Libor underpin trillions of dollars of financial contracts, such as corporate loans, mortgages and interest-rate derivatives. Most companies have picked the Secured Overnight Financing Rate, or SOFR, as their replacement for Libor, which is being phased out after a manipulation scandal. Libor is set to expire June 30, 2023.
/jlne.ws/3w1lPoH
Market Surge After CPI Data Has Skeptics Issuing a Warning
Tassia Sipahutar and Denitsa Tsekova - Bloomberg
The cooler-than-expected US inflation reading for July is a positive sign that has buoyed risk assets, but some investors may be getting a little ahead of themselves, according to analysts.
The rally that sent the S&P 500 to a three-month high and the Nasdaq 100 more than 20% above its June bottom was fueled by bets that the Federal Reserve may turn less hawkish on interest rate hikes. Yet market observers cautioned that policy makers will want to see months more of evidence that price gains are slowing before they change their view.
/jlne.ws/3bJvN7r
Bond Traders Dismiss Stock-Market Rally as Misguided Euphoria
Liz McCormick - Bloomberg
For just a moment Wednesday, so brief that if you blinked you may have missed it, the US Treasury curve inverted to levels not seen since Paul Volcker waylaid the economy with his fight to break inflation in the early 1980s.
While you should only read so much into such a fleeting move, that it occurred at all was a stark reminder of just how convinced the bond market has become in its collective belief of a looming economic downturn, especially in the face of surging stocks and plunging volatility in recent weeks.
/jlne.ws/3Qh06kI
The VIX Trades Below 20
Akane Otani - WSJ
Wall Street's fear gauge is back in the teens.
The Cboe Volatility Index, which tracks expectations for stock swings over the next 30 days, closed below 20 on Wednesday for the first time since April. It's continuing to hang out in the sub-20 range following this morning's largely benign PPI reading.
/jlne.ws/3bJxyl3
Brazil's Hedge Funds Switch Tactics on End of Bold Rate Hike Cycle
Vinicius Andrade and Felipe Saturnino - Bloomberg
After profiting from one of the world's most aggressive monetary tightening cycles, some Brazilian money managers are switching tack and starting to bet on the opposite trade.
SPX Capital, whose Raptor fund is beating 99% of peers this year, and Ibiuna Investimentos, which manages more than 30 billion reais ($5.9 billion), have built positions that benefit from falling rates in Latin America's largest economy. Genoa Capital, a fund launched in 2020 by Itau Unibanco Holding SA asset-management unit veterans, scrapped payer positions -- which gain from rising rates -- last month.
/jlne.ws/3zPzFf1
| | | | | | Exchanges | | | Market for Underlying Security Used for Openings on MIAX Options, MIAX Pearl Options and MIAX Emerald Options for Newly Listed Symbols Effective Thursday, August 11, 2022
MIAX
Please refer to the Regulatory Circulars listed below for newly added symbols and the corresponding market for the underlying security used for openings on the MIAX Exchanges. The newly listed symbols will be available for trading beginning Thursday, August 11, 2022.
/bit.ly/3OTE5YF
SGX Group reports market statistics for July 2022; Iron ore lifts commodity derivatives volume to four-month high; Growth in secondary fundraising despite challenging market conditions
SGX
Singapore Exchange (SGX Group) today released its market statistics for July 2022. Growth in iron ore trading activity lifted commodity derivatives volume to a four-month high, while secondary fundraising increased despite challenging market conditions. Derivatives traded volume across multiple asset classes rose 1% year-on-year (y-o-y) in July to 20.5 million contracts, with derivatives daily average volume (DDAV) up 4% y-o-y. Commodity derivatives volume climbed 57% y-o-y to 3.6 million contracts, the highest since March. Benchmark iron ore derivatives volume gained 68% y-o-y to 3.3 million contracts on the back of heightened volatility, as market participants reacted to developments in China's property sector. Iron ore remains an efficient macro proxy and the SGX Commodities solution enables participants to express their views on the broader economy. The volume of SGX SICOM rubber futures, the world's pricing bellwether for natural rubber, increased 18% y-o-y to 148,290 contracts.
/bit.ly/3dctbz4
CME Group Foundation Awards 2022 Higher Education Scholarships to Rising Black and Latinx Students
CME Group
CME Group Foundation today announced that 18 rising Black and Latinx students majoring in finance, technology and related fields at 11 partner colleges and universities in Illinois have been awarded $20,000 in scholarships each to further their education.
While many scholarship programs are aimed at helping freshmen start college, the CME Group Foundation Scholarship Program works to ensure that sophomores, juniors, and seniors can finish their four-year degrees. Winners can reapply for up to three years of support, for a total of $60,000 in financial assistance. Since its 2019 launch, this program has awarded more than $2.5 million in scholarships to 69 talented college students.
/jlne.ws/3JNFm1C
| | | | | | Regulation & Enforcement | | | FIA joins other trades in EU benchmarks regulation review recommendations
FIA
FIA, along with the International Swaps and Derivatives Association, Inc. (ISDA), the Asia Securities Industry and Financial Markets Association (ASIFMA), the European Association of Corporate Treasurers (EACT), EMTA, Inc., and the Global Foreign Exchange Division (GFXD) of the Global Financial Markets Association (GFMA) have published an updated set of recommendations in response to the European Commission's (EC) latest consultation on reform of the EU Benchmarks Regulation (BMR).
Originally published in 2020, the industry recommendations have been developed to maintain the intended protections of the BMR but reduce the potential for uncertainty and disruption, as well as avoid putting EU investors at a competitive disadvantage to non-EU entities. In May 2022, the EC launched a targeted consultation on the third-country benchmark regime under the BMR, with responses due by August 12.
/jlne.ws/3Qeg6E6
| | | | | | Strategy | | | Opinion: The bullish evidence for this stock market is accelerating
Lawrence G. McMillan - MarketWatch
The S&P 500 index has finally broken out over resistance in the 4170 area - the first time it's been this high since early May. That was a formidable resistance area for a long time, but Wednesday's CPI numbers were enough to push it through there.
The S&P's SPX, 0.27% next targets should be just above 4300, which is the downtrend line for this bear market. Also, SPX's declining 200-day moving average is in that same area.
/jlne.ws/3Qz6js4
Single-Bond ETFs Solve Some Key Investing Problems
Jared Dillian - The Washington Post
It was bound to happen. Following the launch a few weeks ago of some exchange-traded funds focusing on a single stock, one issuer has come up with single-bond ETFs. These three new funds will hold either the benchmark three-month US Treasury bill, two-year US Treasury note or 10-year US Treasury note. I described single-stock ETFS as financial mutants that benefit nobody, but single-bond ETFs are a surprisingly good idea. In fact, I'm a bit shocked that nobody thought of it until now.
/jlne.ws/3wlrNBd
| | | | | | Events | | | Washington Update featuring CFTC Commissioner Summer Mersinger
FIA
Join FIA President & CEO Walt Lukken and the FIA Operations Americas Division for a high level briefing on the latest developments from Washington. Lukken will provide updates on FIA's key policy priorities for 2022, including the recently established Derivatives Market Institute for Standards (DMIST). Following his brief remarks, he will interview CFTC Commissioner Summer Mersinger on the CFTC's current priorities and initiatives. Immediately after, take advantage of a networking reception where you will be able to connect and reconnect with the local cleared derivatives community. Light hors d'oeuvres and drinks will be provided.
September 13, 2022 at 3:30p
Union League Club of Chicago
/jlne.ws/3diAx49
| | | | | | Miscellaneous | | | Panic, Fear, Hope, and Depression: Psychological Phases of the Crypto Market Crash
Oleksandr Lutskevych - TABB Forum
While many fear that the recent crypto market downturn is the end of the DeFi world, the truth is far from it. This market cleansing had to come, and ultimately, the industry will be stronger for it, writes Oleksandr Lutskevych, Founder and CEO of CEX.IO. This shakeout is necessary for the evolution and maturation of this space and once this cycle runs its course, Mr. Lutskevych explains, the quality projects and platforms will remain.
/jlne.ws/3pavjtZ
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