| August 22, 2024 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | Congratulations to Patty Schuler, senior vice president of business development at BOX Options, for receiving the STA Women in Finance (WIF) Mentor of the Year Award. A longtime STAC member and past STA governor, Schuler played a key role in launching the STA WIF initiative and has inspired women across the industry. She will be honored at the STA WIF Symposium on September 18th in Orlando, which marks the start of STA's Annual Market Structure Conference.
It looks like Miami International Holdings, Inc. can push off its IPO for a little longer, as today it announced it received a strategic investment of $100 million from Warburg Pincus. And subject to certain conditions, Warburg Pincus can kick in more booty. This will certainly help MIH in its aggressive growth plans, including building a diversified revenue stream across multiple asset classes and geographies. The money will also help fund the construction and fit-out of a physical trading floor in Miami, Florida for MIAX Sapphire, MIH's fourth national securities exchange for trading U.S. multi-listed options.
The U.S. Securities & Exchange Commission has mandated the clearing of certain treasuries and repos by 2026, prompting participants in the cleared derivatives markets to prepare for this change. On October 15 in New York, FIA Forum: Treasury Clearing 2024 is a half-day forum at BNP Paribas' headquarters that will explore new clearing models and the practical implications of treasury clearing. Sponsorship opportunities are available, and inquiries can be directed to Toni Vitale Chan, vice president of business development +1 312.636.2919.
Here are excerpts from in front of FOW's paywall from some recent stories: ICE has achieved a significant milestone by becoming the first exchange to facilitate trades in European risk-free rate (ESTR) options, marking a new phase in the competitive market for these financial instruments. Meanwhile, LCH's SwapAgent has added SEB as its first Swedish bank member, following the recent inclusion of Mizuho Bank. Transaction Network Services (TNS) has expanded its US equity options coverage by connecting to the newly launched MIAX Sapphire Options Exchange. Despite concerns over China's economic outlook, exchanges remain optimistic about the metals sector, with activity continuing to thrive. ~JJL
| | | | | | Lead Stories | | | Rising Volatility Hints at Growing Unease Ahead of Jobless Claims Data Today
Michael Kramer - Investing.com
The S&P 500 ended the day up about 40 basis points yesterday, showing little reaction to the rising VIX, increased 1-month implied correlation indexes, a steeper yield curve, and a weakening US dollar. This muted response highlights the influence of CTA flows, which have been steering the market recently. The 1-month implied correlation index, the VIX, the VVIX, and the S&P 500 will not often rise on the same day. Yet, that's precisely what has been happening over the past few days. The implied volatility metrics typically trade opposite to the cash market.
/jlne.ws/4dA5ScR
Mexico Becomes Traders' Nightmare as Peso Slide Deepens
Zijia Song, Maria Elena Vizcaino and VinÃcius Andrade - Bloomberg
Traders trying to buy the dip on Mexico's peso can't catch a break. Local politics, the dismantling in so-called carry trades and concerns about the US economic and political outlook are disrupting bullish calls on what was until May the best performing emerging-market currency this year. The peso is down more than 3% against the dollar this week and almost 14% in the past three months, by far the worst among peers. Its six-month implied volatility has jumped to near the highest in three years.
/jlne.ws/4dNF9db
Copper Is Flooding Into US as Flash-Squeeze Chaos Reverberates
Mark Burton - Bloomberg
When copper surged toward a record high in New York in May, a ship was in the Pacific Ocean carrying a raw form of the metal from Chile to top buyer China. By the time the Ricarda arrived in Shanghai in June, the global copper market had been upended by a short squeeze. It then received an unusual request: Reload with more copper in China - a country that typically needs to import vast volumes to meet its needs - and take it back to the US, where the metal was fetching unprecedented premiums as the market reeled from the squeeze.
/jlne.ws/46YNmZb
New US ETFs being launched at record pace in 2024
Suzanne McGee - Reuters
The number of new exchange-traded funds hitting the U.S. market is on track to set another record in 2024, according to data from Morningstar Direct, with an average of 50 ETFs making their debut monthly.
That compares to a monthly average of 48 in 2023, which was also a record, and 38 in 2022, the data show.
/jlne.ws/4dv50X1
Hedge Fund Tribeca Says Weak Bank Research Fueled Its 19% Gain; Tribeca's Jun Bei Liu sees lucrative window during earnings; Liu says lack of in-depth analyst reports gives fund an edge
Harry Brumpton and Georgina McKay - Bloomberg
Australia's second-best performing hedge fund is profiting from greater market swings during earnings seasons, saying investment bank research has failed to track the ups and downs of faster-evolving industries. Jun Bei Liu, a portfolio manager at Sydney-based Tribeca Alpha Plus Fund, said the gradual retreat of equity research coverage by banks and brokerages combined with increased automated trading has created ever greater difference between the market pricing and her own views, said Liu, whose Tribeca Alpha Plus Fund generated nearly 19% returns in a year.
/jlne.ws/3Axh9fs
Tether plans to launch a UAE dirham-pegged stablecoin
Adam James - The Block
Tether plans to launch a new stablecoin pegged to the United Arab Emirates dirham in collaboration with Phoenix Group and Green Acorn Investments. According to a press release, the token will "lead the way in seeking licensing under the UAE Central Bank's recently announced Payment Token Services Regulation." According to Tether, the dirham-pegged stablecoin will provide users with a more cost-effective and transparent way of accessing the currency and a hedge against currency fluctuations.
/jlne.ws/3Mfb49Z
| | | | | | Exchanges | | | Miami International Holdings Secures Investment for Strategic Growth from Warburg Pincus
MIAX Press Release
Miami International Holdings, Inc. (MIH), a technology-driven leader in building and operating regulated financial markets across multiple asset classes, today announced a $100 million investment from Warburg Pincus, a leading global growth investor. Subject to certain conditions, Warburg Pincus may expand its investment in MIH to support additional growth. The growth investment will accelerate the next phase of MIAX's global expansion as it executes on its strategy of building a diversified revenue stream across multiple asset classes and geographies. Among other uses, the investment will fund the construction and fit-out of a physical trading floor in Miami, Florida for MIAX Sapphire, MIH's fourth national securities exchange for trading U.S. multi-listed options. MIAX Sapphire will operate both an electronic exchange and physical trading floor. The electronic exchange successfully launched on August 12, 2024, with the trading floor in Miami scheduled to go live in 2025.
/jlne.ws/3WORPsE
MIAX-parent Miami International receives $100 million investment from Warburg Pincus
Reuters
Miami International Holdings has secured a $100 million investment from private equity firm Warburg Pincus, the owner of Miami International Securities Exchange (MIAX) said on Thursday. The announcement comes days after Miami International launched MIAX Sapphire, its fourth national securities exchange for trading U.S. options. The investment will fund the construction of a physical trading floor in Miami, Florida, for MIAX Sapphire electronic exchange, among other uses. MIAX Sapphire will be the first national securities exchange to establish operations in Miami, the company said.
/jlne.ws/4fTxZFw
ICE hits latest milestone with industry's first ESTR options trade
Radi Khasawneh - FOW
ICE has become the first exchange to see trades in European risk free rate options, opening a new front in a three-way competition for the market
/jlne.ws/46YSwo6
CBOE stock soars to all-time high, reaches $207.09
Investing.com
In a remarkable display of market confidence, CBOE Holdings Inc stock has surged to an all-time high, with shares hitting a peak of $207.09. This milestone underscores a period of significant growth for the exchange operator, which has seen its stock value climb by an impressive 37.8% over the past year. Investors have rallied behind CBOE's strong performance and strategic initiatives, propelling the stock to new heights and marking a standout moment in the company's trading history. The all-time high represents not just a 52-week triumph but also a historic price level for CBOE, reflecting the company's robust financial health and optimistic outlook among shareholders.
/jlne.ws/3YXZxU6
TNS extends access to all US equity options exchanges; The addition of the recently launched MIAX Sapphire Options Exchange builds on the firm's commitment to comprehensive coverage of the US listed options marketplace.
Wesley Bray - The Trade
Transaction Network Services (TNS) is set to expand access to US equity options with connectivity and market data support for the recently launched MIAX Sapphire Options Exchange. The move comes as part of TNS' commitment to comprehensive coverage of the US listed options marketplace.
/jlne.ws/3Axc32X
TNS Expands Access to all US Equity Options Exchanges with MIAX Sapphire Connectivity
TNS press release
Transaction Network Services (TNS) is expanding access to US equity options with connectivity and market data support for the newly launched MIAX Sapphire Options Exchange. This addition to TNS' existing service offering signifies its unwavering commitment to comprehensive coverage of the US listed options marketplace. TNS will provide market data and order routing access to customers in an ultra-low-latency trading environment. With the addition of MIAX Sapphire, traders using TNS can now gain access to all 18 US equity options exchanges. This provides several key benefits including enhanced market data services, resilient connectivity and streamlined operations.
/jlne.ws/3WUFCmu
| | | | | | Regulation & Enforcement | | | SEBI New Rules For Futures & Options Trading; Futures and Options (F&O) trading was initially introduced to help investors hedge their investment risks. However, market regulators (SEBI) and government officials have been concerned about the increasing trend of speculative bets on individual stocks through F&O contracts in the past few years.
The Free Press Journal
Introduction: The Securities and Exchange Board of India (SEBI) introduced a consultation paper titled "Measures to Strengthen Index Derivatives Framework for Increased Investor Protection and Market Stability " on July 30, 2024. The market regulator introduced this paper to prevent entirely speculative trading, which is becoming increasingly popular among retail investors. This type of speculative trading causes retail investors to lose money and makes it difficult for investors to determine the actual value of a company. Futures and Options (F&O) trading was initially introduced to help investors hedge their investment risks. However, market regulators (SEBI) and government officials have been concerned about the increasing trend of speculative bets on individual stocks through F&O contracts in the past few years.
https://jlne.ws/3WYD06T
| | | | | | Strategy | | | US ETF launches from 15th to 22nd August, 2024
Kyle Anthony - ETF Express
Seven new ETF offerings were launched for the week, each with a distinct value proposition for investors. Detailed below are the respective launches from each asset manager. YieldMax launched YieldMax TSM Option Income Strategy ETF (Ticker: TSMY), an actively managed ETF that seeks to generate monthly income from a synthetic covered put strategy on Taiwan Semiconductor Manufacturing Company (Ticker: TSM) while providing indirect short exposure to the share price of TSM. TappAlpha launched the TappAlpha SPY Growth & Daily Income ETF (Ticker: TSPY). TSPY employs a covered call strategy, investing directly in the SPDR S&P 500 ETF (Ticker: SPY) and boosting income by selling daily call options on SPY. However, unlike traditional covered call ETFs that sell monthly options at the market price, TSPY's strategy focuses on daily expirations to take advantage of options' quick time decay.
/jlne.ws/3WVScBV
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