| March 14, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
FIA Removes MOEX Membership; David Howson to become Cboe President; LME Halts Nickel Trading
JohnLothianNews.com
"Alex Perry's Optionstopia" takes a look at this week's options news highlights: FIA Removes MOEX Membership; David Howson to become Cboe President; LME Halts Nickel Trading
Term of the Week: Options Buyers & Sellers from Euronext
Watch the video »
| | | | | | Lead Stories | | | Options Traders Who Bet Against Russia Can't Unwind Positions as Markets Halted
Elaine Chen and Annie Massa - Bloomberg
As Russia began its invasion of Ukraine, Jennifer Stockman wagered against the aggressors.
Stockman, who helps raise money for a health-care organization, bought put options on a Russia-linked fund using her personal accounts at Fidelity Investments and Charles Schwab Corp.'s TD Ameritrade.
/jlne.ws/3wa7V4u
Stock Market Outlook: Central Bank 'Put' Is Missing As Inflation Soars
Carla Mozée - Business Insider
Surging inflation is a key worry for central banks, and that's cutting out a potential pillar of support for stocks that have slumped this year, said Barclays.
The central bank "put" has so far gone missing in the stock market, making the investing landscape more complicated, the bank wrote in a European equities research note published Monday. A central bank "put" is the idea that monetary policies will be steered toward ending sharp declines in stocks.
/jlne.ws/3IcqJmb
Hedge Funds Made Record Cut to Bullish Oil Bets in Run to $140
Alex Longley - Bloomberg
Money managers made the biggest cut to their net-bullish Brent oil bets on record last week.
The retreat shows that wild swings across the oil market were part of a broad-based liquidation of positions, with West Texas Intermediate, diesel and gasoline futures all seeing speculators closing out long contracts.
/jlne.ws/3IasnEO
Chinese tycoon's 'big short' on nickel trips up Tsingshan's miracle growth
Praveen Menon, Min Zhang and Fransiska Nangoy - Reuters
Chinese tycoon Xiang Guangda has to find a way to bail his Tsingshan Holding Group out of a crisis after its bet on nickel prices backfired, fuelling more volatility in a metal essential for the electric vehicles industry. One of the world's top nickel producers faces massive losses on its short positions after prices soared over $100,000 per tonne last week and forced the London Metal Exchange to halt nickel trading.
Tsingshan has to either pay off the outstanding short positions, which could be as high as $8 billion, or prove it has sufficient deliverable nickel to repay in kind.
/jlne.ws/3tbZofm
Mohamed El-Erian warns Putin's war could drive US inflation above 10% â and suggests the Fed isn't equipped to tackle the problem well enough
Shalini Nagarajan - Business Insider
"We will probably get very close or above 10% before we come down," the economist said Sunday on CBS' "Face The Nation, adding that he expects to see double-digit figures hit by summer.
"And that difference will be all because of the disruption that Putin's war implies for commodity prices, supply chains, and shipments."
/jlne.ws/35PxSMc
Once cheap ETFs lose market share as relentless price war continues
Steve Johnson - Financial Times
US-domiciled exchange traded funds that were so cheap they stole market share from rival ETFs five years ago are now seen as so expensive they are bleeding assets to challengers charging even lower fees.
The trend is a sign of continuing fee compression in the $7.2tn US ETF industry as increasing competition forces fund groups to cut costs or haemorrhage market share to more aggressive rivals.
/jlne.ws/3wdpD74
Funds dump CBOT wheat shorts on epic rally; end users snap up corn -Braun
Karen Braun - Reuters
Many speculators were on the wrong side of the Chicago wheat market when Russia invaded Ukraine and therefore unprepared for last week's price action in the futures market.
The two Black Sea grain giants cover more than a quarter of the world's wheat exports and Ukraine is a top corn exporter, and both countries' shipping programs have been largely non-existent since the invasion began late last month.
/jlne.ws/3tTbYPT
| | | | | | Exchanges | | | Investors Will Soon Be Able to Trade Daily Futures Price Moves with Event-Based Contracts from CME Group; Smaller-sized products will allow investors to trade on their knowledge of benchmark global metals, energy, equities and foreign currency futures markets with risk limited to the amount of their trade
CME Group
CME Group, the world's leading derivatives marketplace, today announced that it is introducing event-based contracts designed for the retail audience that will make it easier for everyone to trade their views on daily up or down price moves in some of the world's most widely quoted benchmark futures markets, including gold, oil, equity indices and foreign currencies. These new daily options on futures contracts will offer short-term trading opportunities for individuals seeking to take a position on daily price moves using smaller-value trades of up to $20 per contract.
/jlne.ws/3i7BnQw
Introduction of Daily Futures on KOSPI 200 Weekly Options - prerequisites for trading and simulation
Eurex
With this Newsflash, Eurex would like to provide more detailed information regarding the requirements for trading of the new Daily Futures on KOSPI 200 Weekly Options (OKW1, OKW3, OKW4, OKW5) to be introduced on the Eurex/KRX Link, as announced in Eurex circular 006/22 and in Eurex Clearing circular 001/22.
/bit.ly/3KMLSoN
A New Kind Of Options Contract Is Coming To The Market
Benzinga
On March 14, Cboe Global Markets Inc. will introduce the Nanos S&P 500 Index Options Contract, a simple, affordable, and unique alternative to standard option contracts. Cboe defines Nanos? as a new, simpler way to trade options on the S&P 500 Index.
But how exactly does it work?
/jlne.ws/3tc1D2g
ETD Volume - February 2022
FIA
Worldwide volume of exchange-traded derivatives reached 6.23 billion contracts in the month of February, the highest monthly total ever recorded. The February total was up 2.4% from January 2022 and up 35.6% from February 2021.
On a year-to-date basis, volume in the first two months of the year was 12.3 billion contracts, up 32.9% from the first two months of 2021. The majority of that increase came from equity index contracts.
/jlne.ws/34IBdMq
| | | | | | Miscellaneous | | | A brewing economic storm in eastern Europe
The Editorial Board - Financial Times
The countries of central and eastern Europe have shown moral clarity in the face of crisis. As millions of people flee the war in Ukraine, Poland and others have thrown open their borders to offer refuge. A sense of solidarity between former Soviet-bloc states seeking to create new paths for themselves in Europe has driven much of this response. These countries are bearing the cost of a broad European imperative to offer support to those who need it the most.
/jlne.ws/3IciTsK
Nickel Blowup Made a Lot of Trouble
Matt Levine - Bloomberg
One way to have a commodities exchange would be that you get the nickel producers in a room with the industrial users of nickel and they agree to sell each other nickel. Each producer would say "I am going to make X tons of nickel this year, who wants it," and each user would say "I am going to need Y tons of nickel this year, I'll take some," and they'd agree on prices and delivery dates. The producers would lock in buyers for their nickel, the users would lock in a supply of nickel for their factories, everyone would be as hedged as they wanted to be. (Or not: A producer might sell all of its production for the next three years to lock in prices, or it might sell only this week's production and take a chance that next week it will get a better price.) And they'd all negotiate credit terms: If I agreed to buy nickel from you next year, we'd agree on how much of a down payment I should give you now.
/jlne.ws/3CFs5Vp
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