| July 17, 2024 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | Miami International Holdings, Inc. (MIH) announced that the SEC has approved MIAX Sapphire LLC's application to become a national securities exchange. MIAX Sapphire, MIH's fourth national securities exchange for U.S. multi-listed options, will feature both an electronic exchange, launching on August 12, 2024, and a physical trading floor, opening in 2025. This will be the first national securities exchange to establish a presence in Miami, Florida, and will include advanced trading facilities, office space, conference rooms, and media broadcast areas.
MEMX's options market is also doing well, with a 4.3% share of regular electronic trading in June, which has increased to 5.4% so far in July. In terms of popular ETFs, MEMX's regular electronic options market share this month is 7.8% for SPY, 4.9% for QQQ, and 6.8% for IWM. Notably, MEMX Options' quoting performance has improved significantly, ranking second out of 17 exchanges for SPY trading this month.
On July 16, FOW reported several significant stories that are behind its paywall. Marex has appointed Makenzie Billings from CME Group to head its new division overseeing introducing brokers in derivatives. Additionally, Marex hired Malcolm Bradford from Bank of America Merrill Lynch to enhance its futures, options, and OTC clearing sales, following its recent Nasdaq listing. The European Energy Exchange (EEX) saw a significant increase in power futures volumes in the first half of the year, driven by high demand for German, French, Italian, and Spanish power futures, as well as Dutch natural gas futures. Horizon Trading Solutions expanded its services to Asian clients by launching mutualised hosting services via Hong Kong Exchanges and Clearing (HKEX), building on recent successes in North America. Lastly, CME Group's expansion in its rates franchise is showing promising results, with a notable surge in options trading on US Treasuries, reflecting a broader shift in market structure. ~JJL
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Options Education Goes Mobile: How Mat Cashman Is Bringing Wall Street to Your Pocket
JohnLothianNews.com
In the dynamic world of financial derivatives, Mat Cashman of the Options Industry Council (OIC) is on a mission to demystify the complex realm of options trading. As part of the OIC's investor education team, Cashman is at the forefront of a digital revolution in financial literacy, adapting to the changing habits of a new generation of traders.
Watch the video »
| | Lead Stories | | | Traders Betting on China Easing Boost Bearish Options on Banks; Cost of hedging against drops in CCB, ICBC and BOC has risen; China Merchants Bank is among the most-shorted lenders in Asia
Jeanny Yu - Bloomberg
Investors are increasingly skeptical about this year's market-beating rally in Chinese bank stocks on concerns that potential easing measures to further support the nation's flagging economy will hurt the firms' profitability.
The cost of hedging against declines on China Construction Bank Corp. shares has jumped, and the number of bearish options outstanding hit a 10-year high relative to bullish contracts, data compiled by Bloomberg show. The trend is similar for Bank of China Ltd. and Industrial and Commercial Bank of China Ltd., whose put-to-call ratio climbed to its highest level in two years following the last expiration.
/jlne.ws/4don0SD
Bearish Nvidia Option Trade Nets $6 Million in Day on Share Drop
Carly Wanna - Bloomberg
A trader who bet against Nvidia Corp. in the options market Tuesday appears to have made more than $6.5 million as shares of the AI darling slumped.
Early Tuesday, 60,000 contracts of a $119/$115 put spread were bought for a total cost of about $1.23 million. The buyer was betting on shares dropping below $119 by Friday, while lowering their cost - and capping potential gains on a selloff - by selling the lower-strike option. For the trade to expire "in the money" - that is, worth something - shares would need to dip almost 6% from Tuesday's close.
/jlne.ws/3Y4Gqar
The S&P 500 Is the World's Safest Equity Asset. The Trump Shooting Proves It.
Steven M. Sears - Barron's
Go long America.
/jlne.ws/3Y2Pahr
U.S. stocks are headed for their calmest stretch since 2007, by one measure. What that means for your portfolio.
Joseph Adinolfi - MarketWatch
An unusually tranquil stretch for U.S. stocks is poised for a new milestone on Wednesday just as the rally appears to finally be broadening out beyond a handful of megacap names.
Assuming stocks avoid an outsize selloff, the S&P 500 index SPX is on track for what would be its 352nd straight session without a 2% decline, the longest such streak since February 2007, Dow Jones Market Data show.
/jlne.ws/3SbPYg4
Uncertainty sets in with traders as the VIX pops to its highest level in 6 weeks
Jason Capul - Seeking Alpha
Whether it is the start of a larger move lower or just a flush out in the markets, traders and investors have shown some level of uncertainty, as reflected in Wall Street's volatility gauge hitting its highest level in over a month.
The S&P VIX Index (VIX) was last up to 14.63, which is its highest point since May 31.
/jlne.ws/4d0bSLX
| | | | | | Exchanges | | | Miami International Holdings Announces SEC Approval of MIAX Sapphire Exchange
MIAX
Miami International Holdings, Inc. (MIH), a technology-driven leader in building and operating regulated financial markets across multiple asset classes and geographies, today announced the Securities and Exchange Commission (SEC) has approved MIAX Sapphire LLC's (MIAX Sapphireâ¢) application for registration as a national securities exchange. MIAX Sapphire will be MIAX's fourth national securities exchange for U.S. multi-listed options and will operate both an electronic exchange and physical trading floor. The electronic exchange is expected to launch on August 12, 2024, with the opening of the physical trading floor to follow in 2025. The MIAX Sapphire trading floor will be the first national securities exchange to establish operations in Miami, Florida, and will include a next-generation trading floor, ancillary office space for MIAX employees and market participants, conference facilities and broadcast media space.
/jlne.ws/3zLePBb
| | | | | | Regulation & Enforcement | | | FIA and Acuiti release report on challenges and opportunities for the European listed derivatives markets
FIA
FIA today released a report on the challenges and opportunities facing the European listed derivatives markets. The report is based on responses to a survey conducted recently by Acuiti, a market intelligence firm, that gauged industry sentiment regarding the key trends, opportunities and challenges facing the industry in Europe.
Acuiti surveyed more than 100 individuals at a variety of firms active in Europe, including clearing brokers, asset managers, hedge funds, principal trading firms, exchanges and software vendors. The survey asked for opinions on current trends as well as the outlook for the next five years.
/jlne.ws/4c3v7DO
FIA June 2024 Highlights
FIA, Inc. via LinkedIn
On 17-19 June, FIA hosted its annual International Derivatives Expo in London, bringing together the clearing firms, exchanges and vendors that drive the growth of the cleared derivatives industry in Europe and around the world. FIA held panels, keynotes, fireside chats and debates on regulation, the future of markets, operational efficiency and resilience, commodities markets in Europe and the latest innovative technology. FIA President and CEO Walt Lukken set the tone for the conference during his opening remarks, highlighting the good news stories in our industry, from growing volumes and competition to the transformative technologies impacting our markets for the better.
/jlne.ws/3xQK11n
***** The FIA was busy in June.~JJL
| | | | | | Strategy | | | Classic Hedge Fund Trade Is a Winner in China's Two-Speed Market
Henry Ren and Charlotte Yang - Bloomberg
Chinese stocks have been among the world's worst performers over the past year, but they are beating their major peers based on one hedge-fund strategy. Investing in Chinese equities using the classic long-short trade returned more than 10% through late June this year, according to data compiled by Goldman Sachs Group Inc. That compares with gains of about 7% in the US, and less than 6% in Europe, the data show.
/jlne.ws/3zOydgD
Finding Trades in a Selloff
tastytrade (Video)
Tune in for a full market rundown with some trade hunting!
The guys answer options trading strategy and concept questions from the YouTube chat and hunt for new trades in the big market selloff.
Mike places a long call diagonal spread in United Airlines for earnings, and they discuss their Netflix earnings trades as well.
/jlne.ws/3WopsTk
October Surprise
Cboe
Get market updates from @JoeTigay on #VIX options and futures, semi-conductors and more in #Vol411.
/jlne.ws/3SAexnp
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