| | | | | | | | January 06, 2025 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
Volatility Insight of the Week: Access global volatility benchmark indices, derived from the world's most actively traded options on futures across asset classes. Track how markets are responding to events as they occur here.
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OCC Annual 2024 and December 2024 Volume
| | | | | | Lead Stories | | | Regime Shift in Equity Vol? Downside Risks Re-Emerge
Mandy Xu - Cboe
Implied volatilities jumped across the board following last month's hawkish FOMC meeting but they have since diverged quite markedly. While equity, credit, and commodity vols have all normalized meaningfully from their Dec 18th highs, interest rate and FX implied vols have continued to climb higher on the back of rising monetary and fiscal uncertainty. VIXTLT Index, for example, is up almost 20pts to the 88th percentile high.
/jlne.ws/4fLWyCX
Margin breaches skyrocket at JSCC amid market volatility; August turmoil led to record initial margin shortfalls at six clearing divisions
Joshua Walker - Risk.net
Market volatility in August 2024 triggered a wave of initial margin breaches at the Japan Securities Clearing Corporation, with six of the central counterparty's (CCP) clearing services reporting their largest backtesting deficiencies on record. During the third quarter of last year, the index futures and options (F&O) clearing unit reported a peak breach of ÃÂ¥246.7 billion ($1.6 billion) - more than 10 times the previous highest deficiency of ÃÂ¥22.8 billion recorded in Q3 2016.
/jlne.ws/4a8lDXr
Trader Who Made Billions in 2008 Returns to Bet on Market Swings; Steve Diggle's Vulpes seeking as much as $250 million for fund
Bei Hu - Bloomberg
A former hedge fund manager whose firm made billions during the global financial crisis is ready to pounce on volatility again, as he sees threats to market stability at a level not seen since 2008. Steve Diggle's family office Vulpes Investment Management is seeking up to $250 million from investors as early as in the first quarter, the Oxford, UK-based investor said in a telephone interview.
/jlne.ws/3BZtJFo
Crypto ETPs start 2025 with $585M inflows - CoinShares; US spot Bitcoin ETFs contributed to 100% of the record-breaking $44.2 billion crypto ETF inflows in 2024, according to CoinShares.
Helen Partz - CoinTelegraph
Cryptocurrency investment products are off to a good start in 2025, with global crypto exchange-traded products (ETP) posting $585 million of inflows in the first three days of the year. The early inflows did not offset heavy selling in the last two trading days of 2024, which meant crypto ETPs saw $75 million in net outflows for the full previous trading week, crypto investment firm CoinShares reported on Jan. 6. Despite the late-year dip, 2024 closed as a record-breaking year for crypto ETFs, with $44.2 billion in inflows - a 320% increase from the previous record of $10.5 billion set in 2021.
/jlne.ws/4gJiNe5
Gold Investors Stay Bullish for 2025 on Trump Volatility; Bullion posted biggest annual gain since 2010 last year; Many drivers of precious metal's rally remain largely intact
Yvonne Yue Li and Jack Ryan - Bloomberg
Money managers are seeing plenty of reasons to remain bullish on gold, following a stellar 2024 that saw the precious metal post its biggest annual gain since 2010.
Bullion surged 27% last year, hitting record highs as it soared to almost $2,800 an ounce. Three main factors fueled the rally: large purchases by central banks, notably those in China and other emerging markets; the Federal Reserve's monetary easing, which makes non-yielding gold more appealing; and the precious metal's historical role as a safe haven amid ongoing geopolitical tensions, including wars in Ukraine and the Middle East.
/jlne.ws/40mlk8b
| | | | | | Exchanges | | | CFTC approves Eurex dividend options for US trading; Specifically, EURO STOXX 50 IndexâEUR¯DividendâEUR¯Options and EURO STOXX Banks IndexâEUR¯DividendâEUR¯Options can now be directly traded from the US.
Claudia Preece - The Trade
The Commodity Futures Trading Commission (CFTC) has approved EurexâEUR¯dividendâEUR¯options for trading in the US as of today, 6 January. US market participants can now more efficiently manage their exposure in European equity markets through these additional instruments, said Eurex. Specifically, EURO STOXX 50 IndexâEUR¯DividendâEUR¯Options and EURO STOXX Banks IndexâEUR¯DividendâEUR¯Options can now be directly traded from the US.
/jlne.ws/4j7o3d1
Eurex dividend options received CFTC approval for trading in the U.S.
Eurex
Eurex reached another milestone in providing global access to its markets. As of 6 January, the leading European derivatives exchange can offer its successful dividend options directly to participants in the U.S. after receiving approval from the U.S. regulator CFTC (Commodity Futures Trading Commission). Market participants located in the U.S. thus have another instrument at hand to efficiently manage their exposure in European equity markets. Besides EURO STOXX 50 Index Dividend Futures (FEXD) and EURO STOXX Banks Dividend Futures (FEBD), they can now trade and clear the respective options at Eurex (OEXD, OEBD).
/jlne.ws/4j3ZHks
Intercontinental Exchange Reports December, Fourth Quarter and Full Year 2024 Statistics Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, today reported December 2024 trading volume and related revenue statistics, which can be viewed on the company's investor relations website at https://ir.theice.com/ir-resources/supplemental-information in the Monthly Statistics Tracking spreadsheet. "ICE began building a global network of exchanges over 20 years ago, and our record performance in 2024 is a testament to the value customers find in our deeply liquid multi-asset markets," said Ben Jackson, President of ICE. "ICE's commodity markets, including energy, as well as our interest rate derivatives complex all traded at record levels in 2024, highlighting the key role these play as risk management tools for market participants globally."
/jlne.ws/403rSaw
CME Group Inc. Announces Fourth-Quarter and Year-End 2024 Earnings Release, Conference Call
CME Group
CME Group Inc. will announce earnings for the fourth quarter and full year of 2024 before the markets open on Wednesday, February 12, 2025. Written highlights for the quarter will be posted on the company's website at 6:00 a.m. Central Time, the same time it provides its earnings press release. The company will also hold an investor conference call that day at 7:30 a.m. Central Time, at which time company executives will take analysts' questions.
/jlne.ws/3DJbiFv
| | | | | | Regulation & Enforcement | | | Winklevoss Twins' Gemini to Pay $5 Million to End CFTC Case; Suit claimed Gemini misled US regulator about Bitcoin futures; Settlement avoids jury trial set for Jan. 21 in New York
Bob Van Voris - Bloomberg
The Winklevoss twins' Gemini Trust Co. cryptocurrency exchange agreed to pay $5 million to end a Commodity Futures Trading Commission lawsuit claiming it misled the derivatives regulator in a bid to launch the first US-regulated Bitcoin futures contract.
The proposed deal was disclosed Monday in a filing signed by both parties, avoiding a trial set to begin Jan. 21, the day after Donald Trump will be inaugurated for his second term as US president. Gemini, which was founded by Cameron and Tyler Winklevoss, settled without admitting or denying liability in the case.
/jlne.ws/3Pn2cAX
| | | | | | Strategy | | | Bitcoin whales raise BTC call options to $100K in expectations of a new rally when Trump takes office on Jan. 20
Florence Muchai - Cryptopolitan
Bitcoin (BTC) is capturing the attention of market participants as significant whale activity signals bullish expectations tied to President-elect Donald Trump's inauguration on January 20. On Saturday, Amberdata revealed that a trader on Deribit spent over $6 million to secure $100,000 strike call options set to expire on March 28.
/jlne.ws/3DKyrYd
| | | | | | Miscellaneous | | | New WFE Research quantifies the impact of stock exchanges on economic growth
The World Federation of Exchanges
The World Federation of Exchanges, the global industry association for exchanges and CCPs (The WFE), has published new research which analyses the link between stock market development and economic growth on a global scale. The research analysed quarterly data from 36 countries over two decades (2003-2022).
/jlne.ws/40ndLOE
****** Is the impact of derivatives exchanges next?~JJL
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