| | | | | | | April 04, 2025 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | | FTSE Russell Expands Options Offerings, Eyes Digital Assets and Commodities JohnLothianNews.com BOCA RATON, Fla. (JLN) - April 4, 2025 - FTSE Russell is broadening its index offerings beyond equities, with a focus on options, digital assets, and commodities, company executives revealed in an interview at FIA Boca50. Tom Jenkins, head of index partnerships & listed derivatives, highlighted the growing popularity of options-based exchange-traded funds (ETFs) and the company's efforts to educate investors about these products. Watch the Tom Jenkins Video » Justin Llewellyn-Jones and Alun Green - Trading Technologies Watch the Justin Llewellyn-Jones and Alun Green Video » Travis Schwab - Eventus Watch the Travis Schwab Video »
| | | | | | Lead Stories | | | Options Volatility Spike Shows Stock Market Slide Turning Messy
Bernard Goyder and Natalia Kniazhevich - Bloomberg
The once-orderly market selloff has gotten messier, with traders scrambling for cover sending options market volatility to the highest since the early August shock.
The plunge in stock futures and spike the Cboe Volatility index started at around 6 a.m. New York time when China retaliated against US tariffs. As in August, the initial market move was likely exacerbated by thinner liquidity before regular US trading hours, though this time it lasted into the main session.
/jlne.ws/3XKoyAX
Options Traders Crowd Into Fear Trade
Krystal Hur and Gunjan Banerji - The Wall Street Journal
Options traders are betting that market volatility is here to stay. The Cboe Volatility Index, or VIX, known as Wall Street's "fear gauge," rose to 28.25 Thursday afternoon. Traders are betting it has more room to run. In recent days, some of the most actively-traded VIX contracts were tied to the index jumping to 40 and 45, according to Cboe Global Markets Data.
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One chart shows just how much investors are panicking over the trade war
Jennifer Sor - Business Insider
Investors are panicking over Trump's latest tariff package.
Just look at Wall Street's fear gauge, which spiked to its highest level in about eight months as a global trade war kicked off this week.
The Chicago Board Options Exchange's CBOE Volatility Index, or the VIX, spiked in the days before and following Trump's latest round of tariffs, which were more severe than most on Wall Street expected.
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Fear grips financial markets as global trade war heats up
Saqib Iqbal Ahmed - Reuters
Volatility measures across global financial markets jumped on Friday and Wall Street's top "fear gauge" soared to an eight-month high as China imposed fresh tariffs on all U.S. goods in response to President Donald Trump's sweeping levies.
The Cboe Volatility Index (.VIX), an options-based gauge of stock investors' anxiety about the market's near-term outlook, rose as much as 15.54 points to a 45.56, its highest since August.
/jlne.ws/4ljpPZO
Wall Street's 'Fear Gauge' Is Surging
Caitlin McCabe - The Wall Street Journal
Wall Street's "fear gauge" is back at pandemic-era levels, reflecting escalating unease about the market fallout from President Trump's tariff blitz.
/jlne.ws/43EKpgX
VIX Jumps to Highest Since August as Tariffs Spur Stock Rout
Bernard Goyder - Bloomberg
The Cboe Volatility Index rose to its highest level since August, as US President Donald Trump's tariffs roiled global equity markets.
The 'fear gauge,' based on trading in options on the S&P 500, climbed 8.5 points to 30.02, as the US benchmark stock index slid 4.8%.
/jlne.ws/4iVuD5X
Credit Fear Gauges Soar Most Since Banking Meltdown in 2023
Abhinav Ramnarayan, Eleanor Duncan, Giulia Morpurgo, and Caleb Mutua - Bloomberg
Gauges for credit risk are signaling just how nervous investors are getting about what Bank of America Corp. analysts described as the "the biggest shock to global trade in modern times." US President Donald Trump's sweeping tariffs sent indexes that track credit-default swaps surging by the most since March 2023 in both the US and Europe. The CDS contracts are used to hedge against the risk of default. The Markit CDX North American Investment Grade Index, the most active CDS contract in the world, jumped as much as 8.5 basis points to 75.7 basis points, according to prices compiled by Bloomberg.
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Hedge Funds Frazzled by Tariff Chaos Weigh Sitting It Out
Hema Parmar, Gillian Tan, and Allison McNeely - Bloomberg
A frenzy of hedge fund trading that has been a boon to investment banks may suddenly be nearing its limit, as big investors privately mull one of the dreaded phrases of Wall Street: the sidelines.
In Manhattan and beyond, some active traders are debating behind the scenes whether it's time to throw in the towel on trying to predict President Donald Trump's market jolts.
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'Worst-Case Scenario' for Tech Wipes $1.4 Trillion from Nasdaq
Jeran Wittenstein and Ryan Vlastelica - Bloomberg
There's virtually nowhere to hide for many US technology companies under President Donald Trump's new tariff regime, the harshest in a century.
After Thursday's slump wiped $1.4 trillion in market capitalization from the Nasdaq 100 Stock Index, the gauge is down 16% in the past six weeks. The Magnificent Seven even more, at 20%. Chipmakers are in free fall. And there's little sign the pain will end anytime soon, as seen by Friday's 2.7% tumble in the Nasdaq 100 as China retaliated.
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US banks are 'dominant' in European derivatives, EBA says
Sinead Cruise and Stefania Spezzati - Reuters
Non-EU banks have carved out "dominant" roles in some of Europe's key financial markets, including derivatives where U.S. banks prevail, the European Banking Authority said on Thursday as concerns about the strategic autonomy of the European financial sector grow. Reviewing the dependence of the EU banking sector on foreign banks and foreign currencies, the EBA - which has a mandate to protect and support the EU financial system - said that U.S. banks had a nearly 28% share of the EU derivatives market at December 2023, a rising trend first seen in mid-2021.
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The Stock Market Pain Is Just Getting Started. 'This is How You Sabotage the World's Economic Engine.'
Al Root - Barron's
The stock market plunged after President Donald Trump made his tariff announcement. To state the obvious, it was worse than investors feared, and now they need to figure out what it means for stocks over the rest of 2025.
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| | | | | | Exchanges | | | Miami International Holdings Receives 2025 TabbFORUM NOVA Award
MIAX
Miami International Holdings, Inc. (MIH), a technology-driven leader in building and operating regulated financial markets across multiple asset classes, today announced that it was selected as a 2025 TabbFORUM NOVA Award honoree. The awards highlight the financial industry's ongoing commitment to technology-driven innovation by recognizing organizations for their outstanding recent and sustained achievements. MIH was previously selected as an honoree in 2023.
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MIAX Options And MIAX Emerald Options - Reminder: Effective For Trade Date April 4, 2025, 2X OPENING And INTRADAY Valid And Priority Quote Spread Relief In All Symbols
MIAX via Mondovisione
Please be advised, effective for trade date April 4, 2025, the MIAX Regulatory Department has granted 2 times OPENING and INTRADAY quote parameter relief for all symbols on MIAX Options and MIAX Emerald Options. Please note, standard quote width is $5 wide, two (2) times width is $10. The quote width listed in the following will be two (2) times the listed width.
/jlne.ws/3FUxa1P
Cboe Global Markets Reports Trading Volume for March 2025
Cboe Global Markets
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today reported March trading volume statistics across its global business lines and provided guidance for selected revenue per contract/net revenue capture metrics for the first quarter of 2025. The data sheet "Cboe Global Markets Monthly Volume & RPC/Net Revenue Capture Report" contains an overview of certain March trading statistics and market share by business segment, volume in select index products, and RPC/net capture, which is reported on a one-month lag, across business lines.
/jlne.ws/42vfIJR
CBOE 2024 Annual Report
CBOE via Mondovisione
Dear Shareholders,
As Chair of Cboe's Board of Directors, I am committed to helping to ensure that the Board is acting in your best interest to help drive continued success for Cboe. The company has evolved greatly since I joined the Board in 2016 but each year, I gain a new reminder of the value of this business and the talent of the team running it. 2024 was a strong year for Cboe. As you will read in CEO Fred Tomczyk's letter, the Cboe team spent most of 2024 sharpening its strategy and creating alignment across the company. That work paid off and Cboe achieved record net revenue and earnings in 2024. Cboe is well-positioned to have another great year in 2025.
/jlne.ws/42jz4k7
March 2025 figures at Eurex
Eurex
Eurex, Europe's leading derivatives exchange and - along with Eurex Clearing - one of the leading central counterparties globally, recorded a 21 percent surge in total trading volume for March, reaching 248.2 million contracts, up from 205 million in the same month last year. This growth was primarily driven by a 40 percent jump in equity derivatives, which increased from 28.3 million to 39.5 million contracts. Interest rate derivatives also saw a notable rise of 24 percent, reaching 117.6 million contracts. Additionally, index derivatives grew by 9 percent, climbing from 81.5 million to 89 million contracts.
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| | | | | | Strategy | | | How to Protect Your Retirement Savings Now as Markets Plunge; If you're within five years of retiring, either before or after, you're at your most vulnerable financially. Here are steps to weather the volatility.
Diane Harris - The New York Times
"Stay the course." "Tune out the noise." "Focus on the long term." That's the advice that experts typically play on repeat at times like these, when stock prices are volatile or falling - as they did Thursday, when the S&P 500 dropped nearly 5 percent, its worst decline since the pandemic in 2020. It is wise counsel for most people, since no one knows for sure which way the market or the economy will end up this year, and missing out on stock gains, even briefly, can put a big dent in your retirement savings. What's more, over periods of 10 to 20 years or more, stocks have always bounced back handily after downturns, leaving investors who remained steadfast with far bigger balances than they had before the turmoil. But what if you don't have a decade or more to wait out a recovery?
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Traders Snap Up High-Yield Bond ETF Put Options as Credit Hedge
Bernard Goyder - Bloomberg
Some traders looking to hedge risks in the high yield bond market, amid fears that an avalanche of Trump administration tariffs could push the US economy into recession, turned to options on exchange-traded funds on Thursday.
A series of put option trades were booked Thursday in the iShares iBoxx High Yield Corporate Bond ETF (HYG) that would rise in value if the junk bond market deteriorates. The ETF's implied volatility and put skew rose to multi-month highs as investors paid up for bearish bets.
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Tariffs Are Here. How to Trump-Proof Your Portfolio.
Ian Salisbury - Barron's
President Donald Trump's newest round of tariffs is rocking markets. Investors looking for places to hide have a few good options-including bonds and gold-but simply taking their lumps in the stock market might be the best one.
/jlne.ws/3RC4nS0
| | | | | | Miscellaneous | | | Trump's Tariffs Were Supposed to Boost the Dollar. Why the Opposite Happened.; Worries that long-term U.S. growth will fade could matter more for the currency than the mechanical impact of tariffs
Jon Sindreu - The Wall Street Journal
While President Trump has always claimed to want a weaker dollar, the consensus among investors was that his policies would strengthen it. Turns out he was right, but perhaps in the worst way.
On Thursday, stocks tumbled in the U.S., Europe and Asia following Trump's unveiling of a raft of punishing "Liberation Day" tariffs. What was more unexpected is that the U.S. dollar tumbled against most major currencies. The WSJ Dollar Index, an indicator based on a basket of currencies, has now lost more than 5.9% this year and is below where it was on Nov. 5, before its postelection rally.
/jlne.ws/3XHgmkY
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