| June 24, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Recession Trades Mount as Powell Triggers Rush to Defensives
Cormac Mullen and Abhishek Vishnoi - Bloomberg
Global stock investors may be excited with gains this week but the rally is looking like a run for defensive plays rather than a risk-on roar.
A Goldman Sachs Group Inc. index of defensive stocks including megacap tech and healthcare names has climbed to more than an 18-month high relative to the MSCI AC World Index, as fears of a global recession outweigh concern over sky-high inflation. The gauge has jumped over 4% this week, double the rise in the global stocks benchmark -- itself on track for its first weekly gain in four.
/jlne.ws/3A4mRmK
Coinbase Global Is Launching a Bitcoin Derivative. The Market Is Still Unsteady.
Brian Swint - Barron's
Coinbase , the exchange for cryptocurrencies, is launching a derivatives product next week in the midst of a meltdown in the market for digital assets. Coinbase Derivatives Exchange, will launch Nano bitcoin futures, its first listed product, on June 27. It will allow investors to buy contracts tied to the future value of one hundredth of a bitcoin. It will be accessible through third-party retail brokers and clearing firms.
/jlne.ws/3Omf0VT
Understanding crypto's fear and greed index
Business Insider
Whenever a good trader is looking to either get out of or into the crypto market, many statistics have to be examined. For one, there's fundamental, sentimental, and technical analysis. Nevertheless, carefully studying every one of these types of analysis can lead to opportunities passing a trader by.
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You'll know the bear market is nearing an end when anxious investors push the 'panic' button
Mark Hulbert - MarketWatch
The end of the bear market is not close. That's according to a contrarian analysis of stock market sentiment: the U.S. stock market hasn't yet experienced the extreme pessimism seen at major bottoms.
It may certainly feel like there's plenty of pessimism and despair on Wall Street. But that bearishness seems a mile wide and an inch deep. My sentiment indices, based on market timers' recommended equity exposures, continue to indicate an underlying eagerness to declare that a bottom has been formed.
/jlne.ws/3OCYD6Z
Bullard Fed's says rapid rise in interest rates now is the best way to avoid recession later
Jeffry Bartash - MarketWatch
The president of the St. Louis Federal Reserve on Friday said the U.S. stands a better chance of avoiding a recession if the central bank jacks up interest rates faster than usual to try to tame the worst outbreak of inflation in 40 years.
At a UBS conference in Switzerland, James Bullard said an aggressive response is the best way to " nip inflation in the bud before it gets entrenched in the economy." The quicker inflation starts to moderate, he said, the less the Fed will need to raise rates later on.
/jlne.ws/3I5yv2V
| | | | | | Exchanges | | | Cboe's New Trading Floor Mixes Past & Present; Cboe bucked a few trends when it launched an open outcry trading floor on June 6.
Eugene Grygo - FTF News
With a lot of fanfare earlier this month, Cboe Global MArkets, Inc., a Chicago-based exchanges company that offers trading, clearing, and investment solutions, bucked more than a few trends when it launched a hybrid, open outcry trading floor in "the historic Chicago Board of Trade (CBOT) building" at 141 West Jackson Boulevard. "We are continuing to support open outcry with a new, state-of-the-art trading floor as our customers continue to find utility and value in the trading floor's price discovery, execution quality, and the deep liquidity provided by our market makers and floor broker," a Cboe spokesperson tells FTF News. The new trading floor took about a year to actually build.
/jlne.ws/3HQaooL
ETD Volume - May 2022
FIA
Worldwide volume of exchange-traded derivatives reached 6.3 billion contracts in the month of May, the second highest monthly total ever recorded. The May total was up 8.4% from April 2022 and up 38.6% from May 2021.
On a year-to-date basis, volume in the first five months of the year was 31.27 billion contracts, up 31% from the first five months of 2021. The majority of that increase came from equity index contracts.
Total open interest at the end of May was 1.13 billion contracts. The May total was up 2.5% from April 2022 and up 3.1% from a year ago.
/jlne.ws/3yi9bDe
Record FX Link Volumes Traded on June 16; June ADV is up 193% year-on-year and in recent days, has consistently surpassed $5bn per day
CME Group
CME Group, the world's leading derivatives marketplace, today announced that FX Link volume has reached a new, single-day record of 82,900 contracts (representing over $7.2 billion in notional value) on June 16. The prior FX Link daily volume record was 77,146 contracts on March 10, 2020.
/bit.ly/3OAnvfK
Risk Management Arrangements in respect of the HKSAR Establishment Day
HKEX
All markets operated by the Hong Kong Futures Exchange will be closed for business on 1 July
2022, except MSCI Futures and Options1. In order to assure that safeguards are in place against potential market risks that may arise during the aforesaid period when some of the major markets are open, Participants are kindly reminded to adopt the following risk management measures:
/bit.ly/3xJOsqA
| | | | | | Regulation & Enforcement | | | FINRA Requests Comment on Proposed Trade Reporting Requirements for Over-The-Counter Options Transactions
FINRA
FINRA is soliciting comment on a proposal to establish a new trade reporting requirement for transactions in over-the-counter options on securities with terms that are identical or substantially similar to listed options. FINRA is proposing to require firms to report this information to FINRA on a daily basis (end-of-day) for regulatory purposes only.
/bit.ly/3yigyuE
SEC chair urges 'one rule book' for crypto to avoid gaps in oversight; Gary Gensler seeks to share information with derivatives agency to better regulate digital assets
Stefania Palma and Patrick Jenkins - FT
The chair of the US Securities and Exchange Commission is looking to strike agreements with other financial agencies to prevent cryptocurrency operators from slipping through the cracks of the US's fragmented regulatory structure. Gary Gensler told the Financial Times he was talking to his counterparts at the Commodity Futures Trading Commission about a formal deal to ensure that trading in digital tokens had adequate safeguards and transparency.
/jlne.ws/3Ni56DA
| | | | | | Miscellaneous | | | Report Details Robinhood's Internal Reaction to GameStop Fiasco
Carter Johnson - Business Insider
If the pandemic era's boom in meme-stock trading was typified by one day, it was January 28, 2021.
That was when surging volumes in specific stocks like GameStop and AMC Entertainment on the trading app Robinhood nearly overwhelmed the brokerage and some of its market makers, according to new details included in a report released Friday by the House Financial Services Committee.
/jlne.ws/3u2hn89
Ken Griffin's Citadel Move Is 'Punch in the Gut' for Chicago
Shruti Singh - Bloomberg
Chicago has suffered a series of corporate departures recently, but Ken Griffin leaving the city might sting the most.
The hedge fund billionaire said Thursday that he's moving the home base of Citadel, the financial behemoth he founded in Chicago more than three decades ago, to Miami. Griffin hinted for months that he might make the move, citing the crime rate and political frustrations with leadership in Illinois.
/jlne.ws/3OjurOP
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| | | Jeff Bergstrom
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