| November 09, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
Nasdaq's Greg Ferrari on Using AI in Derivatives and Nasdaq's New Order Type
JohnLothianNews.com
Greg Ferrari, vice president, exchange business management at Nasdaq, was one of the presenters on a panel at FIA Expo 2023 called, "AI in Action: Use Cases in Derivatives." He sat down with Sarah Rudolph of John Lothian News at Expo to talk about the panel and how Nasdaq is using AI, especially regarding options.
Watch the video »
| | | | | | Lead Stories | | | There's value in options with US CPI data in focus
Reuters via Nasdaq
Foreign exchange option volatility risk premiums are at longer-term lows as a consequence of low FX realised volatility, but if next week's U.S. CPI data deviates far from expectations, option holders could benefit.
Implied volatility is a key component of the option premium and a gauge of the expected realised volatility over its life. Any disparity between implied and realised volatility therefore creates a trading opportunity for those focusing on the volatility angle of options.
/jlne.ws/3sqSgyg
Global X launches options ETF for volatile emerging markets
Bansari Mayur Kamdar - Reuters
An exchange-traded fund (ETF) that started trading on Thursday allows investors to leverage the higher volatility in emerging market equities by selling options.
The recently launched Global X MSCI Emerging Markets Covered Call ETF buys the iShares Core MSCI Emerging Markets ETF and sells call options on the same ETF.
The fund seeks to generate income while also offering investors exposure to volatility.
/jlne.ws/3u1abMo
Bitcoin Rallies Past Terra Crash Level in Win for Bruised Bulls
Sidhartha Shukla and Suvashree Ghosh - Bloomberg
It took just over 18 months, but Bitcoin is finally back to where it traded before the event that precipitated the last crypto crash.
The dominant cryptocurrency rose as much as 6.7% to $37,973 on Thursday before paring the gain. That was the highest since May 5, 2022 â just before the TerraUSD stablecoin collapsed and ignited a daisy chain of failures across the cryptoasset space. Bitcoin completed its full recovery from that debacle almost exactly to the year after the rout reached its nadir when Sam Bankman-Fried's exchange FTX filed for bankruptcy.
/jlne.ws/3QzGU2W
Bitcoin Rallies to a 18-Month High. 3 Reasons Gains Can Continue.
Jack Denton - Barron's
Bitcoin and other cryptocurrencies advanced Thursday to fresh 18-month highs, carrying forward the momentum from a recent rally and supported by a number of factors that suggested gains can continue.
/jlne.ws/40yo2WB
Bank of Japan governor warns unwinding ultra-loose policy is 'serious challenge'
Martin Wolf and Kana Inagaki - Financial Times
The Bank of Japan will proceed carefully with raising interest rates to avoid bond market volatility and any adverse impact on financial institutions, its governor has said, warning that unwinding the central bank's ultra-loose monetary policy will be a "serious challenge".
/jlne.ws/3SFwB0d
| | | | | | Exchanges | | | CQG Enters into Agreement on Acquisition by Group of its Senior Executives
CQG
CQG, a leading global provider of high-performance technology solutions for market makers, traders, brokers, commercial hedgers and exchanges, today announced that the privately held company has entered into an agreement for a group of its senior executives to acquire the company. Until now, the firm has been owned by Tim Mather, who founded the company in 1980. Details of the transaction, expected to be completed this month, were not disclosed. CQG CEO Ryan Moroney said: "Tim and I have been intently focused on a transition plan when he was ready to step away that would put the company in the strongest position while serving the best interests of our customers and employees. We're truly excited about this agreement, which ensures stability, continuity of leadership, control of our own destiny and reinforcement of our commitment to innovation to meet our clients' needs going forward. This is a fantastic outcome for all of our stakeholders, and we're so grateful to Tim for his integrity and unwavering devotion to the business, our people and our unique culture for more than four decades."
/jlne.ws/3u8xq7s
Cboe Global Markets to be Honored as 2023 Alter & Stone Awardee by Working in the Schools
Cboe Global Markets
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today announced it will be receiving the 2023 Alter & Stone Award for its contributions and service to Working in the Schools (WITS). The award, which is given to an outstanding volunteer annually, will be presented at the upcoming WITS Blackboard Affair, its premier fundraising event to fund literacy programing in Chicago Public Schools, on Saturday, November 11.
/jlne.ws/47rQlbO
CME Group Declares Quarterly Dividend
CME Group
CME Group Inc., the world's leading derivatives marketplace, today declared a fourth-quarter dividend of $1.10 per share. The dividend is payable December 28, 2023, to shareholders of record as of December 8, 2023.
/jlne.ws/3QQQy2D
| | | | | | Regulation & Enforcement | | | A billionaire hedge fund kingpin is feuding with the sheriff of Wall Street over an obscure rule in the multitrillion-dollar bond market
Will Daniel - Fortune
Securities and Exchange Commission (SEC) Chairman Gary Gensler is used to ruffling the feathers of some of the most powerful men in finance, if not the planet. There's his well-reported unpopularity with the crypto crowd, for one, and there's noted disagreements with figures such as Marc Andreessen over whether AI could cause a market crash. But now he's locking horns with Ken Griffin, the founder of market-maker Citadel Securities, the hedge fund Citadel, and the owner of the best annual performances in hedge fund history. The billionaire has adamantly opposed rule changes proposed by Gensler for the world's greatest safe haven market: the multitrillion-dollar trading of Treasurys.
/jlne.ws/3u5rv2R
SEC faces fierce pushback on plan to police AI investment advice; Brokers, hedge funds and advisers say proposals are unnecessary and impossible to implement
Jennifer Hughes - Financial Times
Brokers, hedge funds and investment advisers are pushing back hard against attempts by the main US markets regulator to manage how artificial intelligence is used to give financial advice to investors. Rules proposed by the Securities and Exchange Commission in July would force banks and fund managers to neutralise or eliminate any conflict of interest involving almost any form of technology when they advise clients.
/jlne.ws/49sRyRI
| | | | | | Technology | | | Coming Soon: Modernized Tools and Calculators
OIC
For more than 30 years, OIC has strived to continuously modernize and improve its educational offerings to help market participants understand the benefits and risks of trading options.
To that end, OIC is excited to share the news that we will be adding to and enhancing the tools and calculators available through the OptionsEducation.org website. These tools are provided by iVolatility and powered by real market intelligence, allowing investors to visualize data and understand how changes in various inputs may impact option positions - all in a theoretical environment.
/jlne.ws/3MDRwgi
DTCC Launches OTC Direct Connect
Markets Media
DTCC, the premier market infrastructure for the global financial services industry, announced the launch of DTCC's OTC Direct Connect, a service providing seamless access to OTC derivatives transactions data that are reportable in the U.S. and Canada.
/jlne.ws/4746uV3
| | | | | | Strategy | | | The Right IV for Zero DTE
Tastylive (Video)
It's not always easy to take the measure of a market, whether you've been trading for a day or a decade. On this segment we look under the hoodâoptions probabilities, volatility, trading strategies, futures, you name itâso your trading mechanics are built to manage more winners.
/jlne.ws/3QTCTHW
Why Are Covered-Call Fund Yields So High?
Katherine Lynch - Morningstar
High yields are one of the main attractions for investors pouring billions of dollars into exchange-traded funds that use options to generate extra income.
Among the most popular of these funds are covered-call strategies. These funds generally offer much higher yields than what's available elsewhere in the stock and bond markets, with some of the highest payouts solidly in double-digit territory.
/jlne.ws/47rqLUg
Call/Put Ratio
Cboe (Video)
In #Vol411, Scott Bauer @cboesib talks about the state of volatility and busy #options #trading in $CHWY, $TLT, $DIS & $VIX
/jlne.ws/476bQz4
| | | | | | Education | | | What Are Zero-Day Options?
Morrow Sodali - Lexology
Zero Days to Expiration (0DTE) are options that expire on the same day they are purchased.
First, let's take a step back and define options, which are derivative contracts that give buyers the right, but not the obligation, to buy or sell an underlying asset at an agreed-upon price and date. Call options and put options form the basis for a wide range of option strategies designed for hedging, income, or speculation.
Now what's different is that Zero-day options expire within 24 hours, thereby giving an investor a small window of time to decide on exercising the option.
/jlne.ws/479hHDQ
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Editor
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