| March 28, 2022 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
|
| | | | Observations & Insight | | | 
Goldman Sachs Executes First Crypto Options Trade; ICE Launches Global Brand and Ad Campaign; Alex Reflects on FIA Conference
JohnLothianNews.com
"Alex Perry's Optionstopia" takes a look at this week's options news highlights: Goldman Sachs Executes First Crypto Options Trade; ICE Launches Global Brand and Ad Campaign; Alex Shares Remarks from FIA Conference
Euronext presents: Options Term of the Week
Watch the video »
| | | | | | Lead Stories | | | The VXX plot thickens with Barclays' GBP450m structured notes loss; Today's announced GBP450mn hit is linked to its iPath exchange-traded notes business.
Robin Wigglesworth - FT
A few weeks ago Barclays abruptly stopped supporting two of its most popular exchange-traded notes, VXX and OIL. The move to suspend share creations linked to the notes, designed to mimic Vix volatility futures and crude oil prices respectively, puzzled many, given how VXX in particular was a popular trading tool with nearly $1bn in assets. It also meant trading went haywire. At the time, all Barclays would say was:
/jlne.ws/3JLbbqR
****JB: See also - Bloomberg's story, Barclays VIX ETN Turmoil Looks Linked to $591 Million Note Error.
CME Group Announces Launch of Micro-Sized Bitcoin and Ether Options
CME Group
CME Group, the world's leading derivatives marketplace, today launched options on Micro Bitcoin and Micro Ether futures, further expanding its suite of cryptocurrency derivatives offerings. "The launch of these micro-sized options builds on the significant growth and liquidity we have seen in our Micro Bitcoin and Micro Ether futures," said Tim McCourt, CME Group Global Head of Equity and FX Products. "Sized at one-tenth of their respective underlying tokens in size, these contracts will offer a wide range of market participants - from institutions to sophisticated, active, individual traders - greater flexibility and precision to manage their exposure to the top two cryptocurrencies by market capitalization."
/jlne.ws/3qGD0cE
Stocks Are the Best Bet As Inverted Yields Warn of Recession: El-Erian
Phil Rosen - Business Insider
Yields for three, five, and seven-year Treasury bonds are higher than the yield on 10-year notes, a fact of the bond market that has many experts warning of a recession ahead.
The yield on the five-year note surpassed the yield on the 30-year Treasury for the first time since 2006, while other parts of the curve have been inverted for weeks. While bonds have been rocked by the Federal Reserve's plan to tackle inflation by raising interest rates, stocks have been "incredibly resilient", and may be the top bet for investors at the moment, according to economist Mohamed El-Erian.
/jlne.ws/3tLHRLn
Hedge fund oil positions caught between risks from sanctions and recession
John Kemp - Reuters
Investor positions in crude and refined products steadied last week, after heavy sales in the two previous weeks, as fund managers tried to balance opposite risks from sanctions on Russia and a potential global recession.
/jlne.ws/3wKjuzU
Why options trading can be so risky for retail investors
CNBC (Video)
In 2021, options activity hit a record high, with nearly 9.9 billion contracts traded. This increase in volume can be traced back to the meme stock mania, as millions of new investors jumped into the stock market. Options trading is a popular strategy among institutional investors to hedge their risk in the markets, but if it's not executed carefully, it can lead to devastating losses. Watch the video above to learn how options trading took off and why the strategy can be so risky.
/jlne.ws/3uCM4Ai
| | | | | | Exchanges | | | $5 Billion High-Frequency Trading Suit Dismissed in Win for Exchanges
Bob Van Voris - Bloomberg
Nasdaq Inc., Cboe Global Markets Inc. and Intercontinental Exchange Inc. won the dismissal of a $5 billion lawsuit alleging they gave unfair advantages to high-frequency traders.
U.S District Judge Jesse Furman on Monday threw out the proposed class action lawsuit filed by plaintiffs who claimed policies favoring HFT produced high fees for the exchanges but caused other traders $1 billion in losses each year for five years.
/jlne.ws/3iKQNuq
Adoption of 2021 ISDA Interest Rate Derivatives Definitions - V5 published by the International Swaps and Derivatives Association, Inc. ("ISDA") by OTC Clearing Hong Kong Limited ("OTC Clear")
HKEX
Please be advised that effective from 28 March 2022 (the "Effective Date"), OTC Clear will adopt in its entirety Version 5.0 of the Main Book of the 2021 ISDA Interest Rate Derivatives Definitions as published by ISDA on 25th March 2022 (the "New Version") for the purposes of interpreting or implementing the Contract Terms of each Contract registered with OTC Clear irrespective of its Registration Time.
/bit.ly/3uzkjsr
| | | | | | Regulation & Enforcement | | | UK to Release Plans for Regulating Crypto Market in Coming Weeks: CNBC
Adam Morgan McCarthy - Markets Insider
The UK is set to release its plans for regulating the crypto market in the coming weeks, and government officials have been talking to industry players such as crypto exchange Gemini in preparation, according to a CNBC report.
The regulatory framework from the Treasury, the UK's finance ministry, will focus on stablecoins in particular, the outlet reported Sunday, citing industry sources familiar with the matter.
/jlne.ws/3LpBUKm
Grayscale's (GBTC) Fight for a Bitcoin ETF Could End in Lawsuit Against SEC
Katherine Greifeld and Crystal Kim - Bloomberg
Grayscale Investments LLC's campaign to convert its almost $30 billion Bitcoin trust into an exchange-traded fund could end with legal action.
The Securities and Exchange Commission's final deadline to rule on the digital-asset manager's application to convert the Grayscale Bitcoin Trust (ticker GBTC) into a physically-backed ETF -- a product not yet approved by U.S. regulators -- is July 6. Should the SEC reject the filing, Grayscale would consider a lawsuit as part of its response.
/jlne.ws/3uH1Om6
Regulators are worried that retail traders are getting in over their heads
Bob Pisani - CNBC
Hey Mr. Retail Trader: do you like to trade options? How about leveraged and inverse ETFs? Want to buy structured notes?
These kinds of "complex" investment products have exploded in popularity in the last several years, particularly as self-directed investors have been trading at home during Covid.
/jlne.ws/36SWBPQ
| | | | | | Moves | | | GH Financials to promote Asian head Sharon Shi to Group CEO
Luke Jeffs - FOW
GH Financials, the London-based derivatives broker, has appointed its head of Asia Sharon Shi Ning as its new group chief executive officer, subject to regulatory approval. GH, whose former CEO Mark Phelps left last month to become European head of GH rival RJ O'Brien, said on Monday it has appointed with immediate effect Sharon Shi Ning as its CEO-elect. Her formal appointment as GH CEO is subject to UK regulatory approval while her planned move to London from her current base Hong Kong is dependent on the firm securing the necessary visa, the broker said.
/jlne.ws/3r45VYr
***** Nice move by GH Financials in finding their replacement for Mark Phelps inhouse. Congratulations to Sharon Shi.~JJL
| | | | | | Strategy | | | Funds avoid CBOT grain, oilseed shorts while awaiting U.S. plantings
Karen Braun - Reuters
Speculators' gross short bets in Chicago grains and oilseeds have been historically light this month ahead of the highly anticipated U.S. growing season and next week's planting survey, which has a reputation for volatility.
Market participants have also been trying to assess the short- and long-term impacts of Russia's invasion of Ukraine, now in its second month. Agricultural shipments out of major exporter Ukraine have been extremely slow and spring sowing area could be less than half of original ideas.
/jlne.ws/3uDmkDS
Some stock market 'complacency creeping in' after S&P 500's 'near-perfect retracement' of selloff: chart watcher
William Watts - MarketWatch
The S&P 500 is knocking on the door of what could be stiff, near-term resistance after completing an almost perfect retracement of its fall from a January record to its February low, a top Wall Street chart watcher said.
/jlne.ws/36PoEzw
| | | | | | Miscellaneous | | | US companies buy back shares in record volumes; Repurchasing spree aims to tap volatile markets and reassure investors as growth slows
Nicholas Megaw - FT
US companies are rushing to repurchase large volumes of shares to take advantage of recent stock market volatility and reassure investors as growth slows. A record $319bn of share buybacks have been authorised this year, according to Goldman Sachs data, with a rising number of companies using "accelerated" deals to buy volumes as quickly as possible while their share prices are depressed. There were $267bn in share buybacks at the same point in 2021.
/jlne.ws/3iJ3Exa
| | | | |  | | | | JLN Options is sponsored by: | | | | | |  |  |  |  | | | | | |  |  |  | | |
|
|
| | | |
| | | | John Lothian News (JLN) is the news division of John J. Lothian & Company, Inc. (JJLCO). The online media and financial services firm is staffed by derivatives industry, journalism and technology professionals. | | | | | | | John Lothian News Editorial Staff: | | | John Lothian
Publisher | | | Sarah Rudolph
Editor-in-Chief
| | | Jeff Bergstrom
Editor
| | |
|
|
 | |
Disclaimer: All John Lothian Newsletters, JohnLothianNews.com, MarketsWiki.com and MarketsReformWiki.com are products of John Lothian News, a division of John J. Lothian & Company, Inc. The opinions expressed in all John J. Lothian & Company, Inc. publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers. Futures and options trading involve risk. Past results are no indication of future performance. Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any website or newsletter content.
© 2022 John J. Lothian & Company, Inc. All Rights Reserved. |
|
|
