| | | | | | | | December 03, 2024 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | OCC November 2024 Monthly Volume Data
| | | | | | Lead Stories | | | The VIX Index Falls to 4-Month Low as Equities Set Record High
Ed Tom - Cboe
Cross-asset volatilities declined across the board on the back of President-elect Trump's nomination of Scott Bessent to Treasury secretary. The largest mover was rate volatility which declined from 70th %ile highs to 35th %ile levels following sharp declines in US government bond yields.
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US equity options on track for record year after November boost - Cboe
Radi Khasawneh - FOW
US equity options trading is on track for a record year, after hitting a daily high in November as a combination of the US election and the emergence of crypto exchange-traded fund (ETF) options boosted volumes, according to data published by Cboe Global Markets.
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ANALYSIS: Electronic trading driving adoption of listed FX options - CME
Radi Khasawneh - FOW
CME Group, which represents the largest exchange traded foreign exchange market by notional, has seen a rise in use of options as banks and hedge funds embrace electronic trading.
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Wall Street Short Sellers Throwing In the Towel, Citigroup Says
Michael Msika - Bloomberg
Short-sellers are capitulating as the S&P 500 Index keeps hitting record highs and is set for its best year since 2021, according to Citigroup Inc. strategists. Investor positioning in S&P 500 futures is "completely one-sided," the strategists led by Chris Montagu wrote in a note. It's "setting new highs for a fourth consecutive week and increasingly the hold-out shorts are capitulating," they said.
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BlackRock launches active short-term money market ETF; Manager claims to be first to offer strategy in a Ucits-regulated ETF in Europe
Sandra Heistruvers, Ignites Europe - Financial Times
BlackRock has rolled out an actively managed short-term money market exchange traded fund. The iShares EUR Cash Ucits ETF offers investors "the quality and liquidity of regulated money market funds within the convenience of the ETF wrapper", according to the world's largest asset manager. The product was the first actively managed short-term money market fund regulated ETF in Europe, the company said. It provided access to "highly rated short-term money market instruments that follow the strict guidelines of European [money market fund] regulation", BlackRock added.
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Hedge funds profit from 'Trump trades' around US election; Element Capital and Graham Capital among macro managers that did well out of recent market swings
Amelia Pollard - Financial Times
Hedge funds including Jeffrey Talpins' Element Capital and Kenneth Tropin's Graham Capital Management have made big gains from betting on market swings around last month's US presidential election. Element and Graham are among so-called global macro hedge funds - which trade macroeconomic trends in currencies, commodities, bonds and stocks - that have been positioned in "Trump trades", or assets that did well out of Donald Trump's election victory.
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Millennium Backs Pair of Hedge Fund Traders With $3.3 Billion; Robert Tau to receive $1.5 billion for his macro trading firm; Engel-Hall gets $1.75 billion under Milllenium's Andora brand
Bei Hu and Nishant Kumar - Bloomberg
Millennium Management is allocating nearly $3.3 billion to two new teams as Izzy Englander's hedge fund juggernaut continues to hoover up talent in its push to expand internal and external investments. Hong Kong-based Robert Tau will receive $1.5 billion for his macro trading firm and manage money exclusively for Millennium, according to people familiar with the matter. Daniel Engel-Hall, a former Marshall Wace money manager, is getting $1.75 billion to trade under Millennium's Andora Partners brand, the people said, asking not to be identified discussing non-public information.
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Bitcoin's Push Toward $100,000 Runs Into a Wall of Resistance; Digital asset was within $300 of six figures before retreating; Traders are placing bets on Ether, XRP amid rising volatility
David Pan - Bloomberg
Bitcoin bulls are starting to express some doubts after what seemed like an inevitable march toward a record high price of $100,000 loses momentum.
"While we're seeing strong institutional buying pressure, particularly from entities like MicroStrategy's continued accumulation strategy, the broader crypto ecosystem is experiencing a diversification of capital flows from both institutional and non-institutional participants," said Chris Newhouse, director of research at Cumberland Labs.
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Bitcoin Euphoria Threatens to Break These ETFs; Investors are piling into funds that seek to amplify daily return of MicroStrategy shares, but the ETFs haven't been working as intended in recent days
Jack Pitcher - The Wall Street Journal
Investors have flocked to a pair of turbocharged exchange-traded funds to ride the momentum in bitcoin, but they contain hidden risks that aren't widely understood.
The ETFs seek to amplify the daily return of MicroStrategy, the software company that has turned itself into a bitcoin buying machine. Using complex derivative bets, they aim to offer double the daily return of the stock-to the upside or downside.
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| | | | | | Exchanges | | | CME Group Reports Record November ADV of 30.2 Million Contracts, Driven by Growth Across All Six Asset Classes
CME Group
CME Group, the world's leading derivatives marketplace, today reported its November 2024 market statistics reached the highest November average daily volume (ADV) of a record 30.2 million contracts, up 7% from November 2023. Market statistics are available in greater detail at https://cmegroupinc.gcs-web.com/monthly-volume.
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Farmer sentiment following the U.S. election reaches highest levels since May 2021
CME Group
Farmer sentiment jumped again in November, with the Purdue University/CME Group Ag Economy Barometer climbing 30 points to a reading of 145. This marked the highest level of farmer optimism since May 2021, driven by considerable gains in both the Current Conditions and Future Expectations indices. The Future Expectations Index saw the largest jump, rising 37 points to 161, while the Current Conditions Index increased 18 points to 113.
The November sentiment boost reflects growing optimism about a more favorable regulatory and tax environment for agriculture following the U.S. election. This month's survey was conducted from Nov. 11-15, 2024.
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Exchange of the year: Eurex; Risk Awards 2025: Eurex jolts credit futures market into life
Eurex
For many years, large derivatives exchanges have tried - and failed - to get credit futures off the ground. This year, Eurex finally pulled it off. Its credit futures contract, launched three years ago, caught fire in the second half of 2024, boosted by increasing participation from buy-side investors, favourable tailwinds and thoughtful product design in alliance with market participants. Robbert Booij, chief executive officer of Eurex Frankfurt, says the exchange's new suite of credit index futures - providing leveraged exposure to broad fixed income benchmarks - has seen "real traction in the last four months, when volumes have substantially picked up due to activity from real-money clients".
/jlne.ws/41gDQzL
Northern exposure
Eurex
Activity in exchange-traded derivatives increasingly centers around regional trading centers. The hub structure of pan-European exchanges offers market participants a simplified one-stop shop model to access regional exposure. In this article, Taras Markiv, Equity & Index Product Design at Eurex, helps you explore the Nordic derivatives landscape.
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Euronext expands its European derivatives offering with the introduction of Total Return Futures on the FTSE MIB Index
Euronext
Euronext, the leading European capital market infrastructure, today announces the introduction of Total Return Futures (TRF) on the FTSE MIB Index, FTSE Russell's primary benchmark for the Italian equity market. This launch builds on the success of the Total Return Futures on the CAC 40 Index, which Euronext introduced as its first TRF on a national benchmark in November 2018. By introducing TRF on the FTSE MIB Index, Euronext further expands its European derivatives offering across European markets, in line with its new strategic plan, Innovate for Growth 2027. TRF are designed to replicate the full economics of OTC total return swaps in a cost-effective manner, while simplifying the product settings to make them more suited to the exchange environment.
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| | | | | | Moves | | | EDX appoints Jamil Nazarali Executive Chair, Tony Acuna-Rohter to serve as CEO
EDX
EDX Markets Holding Co., Inc. ("EDX"), a leading digital asset technology firm that combines an institution-only trading venue with a central clearinghouse, today announced that current CEO Jamil Nazarali has been appointed Executive Chair of the EDX Board and Tony Acuna-Rohter has been named CEO. Acuna-Rohter previously served as EDX's Chief Technology Officer, leading technology and information security operations since joining in 2022. Acuna-Rohter also leads EDX Clearing, the firm's central clearinghouse company. Prior to EDX, Acuna-Rohter was CTO of ErisX, part of Cboe Digital.
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| | | | | | Strategy | | | This move by the stock market's 'fear gauge' is historically bullish for the S&P 500
Stocks 'have scored excellent returns and consistency over the medium- and long-term horizons': SentimenTrader
William Watts - MarketWatch
Traders have been rushing in to buy stocks in the final hour of trading over the past two weeks, while a gauge of expected S&P 500 volatility has dropped sharply in the wake of the presidential election.
History says those developments tend to bode well for the stock market in coming months, according to Dean Christians, senior research analyst at SentimenTrader, in a Monday note.
/jlne.ws/4giH2PO
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| | | Jeff Bergstrom
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