| February 01, 2024 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
Futures Discovery: Fundamentals of Margin Calls
JohnLothianNews.com
In episode 5 of Futures Discovery, we're peeling back the layers of the ever-important world of margin calls-a topic that can shape the flow of your futures trading journey. In this episode, we're not just scratching the surface; we're delving deep into the fundamentals of margin calls. It's not just about numbers on a screen; it's about deadlines, volatility, and potential lifelines.
Watch the video »
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Long Put, Buying Put Options - Term of the Week
JohnLothianNews.com
This video explores the basics of a long put option contract.
Watch the video »
| | | | | | Lead Stories | | | Traders Pile Into Bets on VIX Soaring to 50 as Fed Risks Mount
Elena Popina - Bloomberg
Traders are making big bets on stock market turbulence as the S&P 500 Index retreats from its record high and investors wonder when, not if, the Federal Reserve will start cutting interest rates.
An hour after trading started on Wednesday, a trader appeared to buy 50,000 call options betting VIX Index could jump toward 50 by April, a level last seen during the pandemic. The cost was relatively cheap â 20 cents for each â and hedged, which enables the buyer to profit from far smaller ripples in the market.
/jlne.ws/3Upf2lM
Regulatory nod for US spot bitcoin ETF options may take months- sources
Suzanne McGee and Hannah Lang - Reuters
Options on new U.S. spot bitcoin exchange-traded funds (ETFs) could take months to gain regulatory approval, potentially dampening the appeal of the underlying products, multiple industry sources said. The Securities and Exchange Commission (SEC) last month approved spot bitcoin ETFs, in a watershed for the crypto industry. Ten products have been trading since Jan. 11.
/jlne.ws/4bn79TO
Wall Street explores novel ways to repackage bank loan risk
Shankar Ramakrishnan and Sinead Cruise - Reuters
A financial product that enables banks to shed risk from loan portfolios is gaining more popularity among lenders in the United States, with investors and lawyers devising new structures to broaden its appeal. In deals known as credit risk transfers, banks effectively buy insurance from hedge funds and other investors against the risk of losses from loans. The deals can free up precious capital for lenders, while producing juicy returns for investors and handsome fees for the arrangers.
/jlne.ws/49f7jej
Fed's Powell Cements Pivot But Pushes Back on Timing of Cuts
Steve Matthews - Bloomberg
Federal Reserve officials cemented the end of their aggressive campaign to push up interest rates, and sought to reset expectations for how soon and how fast they'll cut this year as inflation pressures fade.
While policymakers are shifting their focus to when to start easing policy amid a favorable pullback in inflation, it's clear they're in no rush to lower rates. Against a backdrop of a still-solid economy, Chair Jerome Powell said officials would move patiently and doused speculation that rate cuts would start at the next meeting.
/jlne.ws/42rBDA3
| | | | | | Exchanges | | | SIX launches crypto reference rates and real-time indices for institutional investors; New indices will also serve as benchmarks for digital asset trading venue, AsiaNext, which was founded by SIX and SBI Digital Asset Holdings.
Wesley Bray - The Trade
SIX has today launched new crypto reference rates and real-time crypto indices for financial institutions. Major crypto assets, Bitcoin (BTC) and Ethereum (ETH), are covered by the indices which SIX claims will give a comprehensive snapshot of the market and its performance. These new indices will also function as benchmarks for AsiaNext's crypto derivatives trading platform and institutional investors worldwide.
/jlne.ws/47Z2eph
Exercise & Assignment (E/A) Processing and Deadline Changes for CME/CBT - Effective March 18, 2024
CME Group
Please be advised that CME Clearing has planned changes to the Exercise & Assignment (E/A) Processing Times and Deadlines for CME/CBT Options. Option Assignment Processing for CME and CBT early Option Exercises will be moved to align with the times for Expiring Options. This change is scheduled for Trade Date Monday, March 18, 2024.
/jlne.ws/3Unm6iF
SGX Group reports 1H FY2024 net profit of S$251 million
SGX Group
Singapore Exchange (SGX Group) today reported 1H FY2024 adjusted net profit of S$251.4 million (S$236.8 million). Adjusted EBITDA rose to S$344.6 million (S$334.1 million), while adjusted earnings per share increased to 23.5 cents (22.2 cents). Revenue increased 3.6% to S$592.2 million (S$571.4 million), mainly driven by higher revenues from Currencies and Commodities[2] and Platform and Others, partially offset by lower Equities - Cash2 and Equities - Derivatives2 revenue. The Board of Directors has declared an interim quarterly dividend of 8.5 cents (8.0 cents) per share, payable on 20 February 2024. This brings total dividends in 1H FY2024 to 17.0 cents (16.0 cents) per share.
/jlne.ws/3SpBcSt
| | | | | | Strategy | | | Market 'conditions are ripe' for events to spur volatility
Julie Hyman and Josh Lipton - Yahoo Finance
Following the Federal Reserve's decision to hold interest rates steady between 5.25-5.50%, Wells Fargo Investment Institute Head of Global Fixed Income Strategy Brian Rehling joins Yahoo Finance Live to discuss the announcement, which he regarded "as expected."
With markets having recently reached all-time highs, Rehling doesn't see the Fed standing firm on rates as "derailing the overall market momentum," though it may moderate short-term gains.
/jlne.ws/3Sfnmlq
Cboe Spotlight: Pacer ETFs
Cboe (Video)
/jlne.ws/3vTWDTQ
| | | | | | Miscellaneous | | | The world will have its first trillionaire within a decade, but poverty won't be eradicated for another 229 years, report finds
Jessica Dickler - CNBC
In just three years, the world has witnessed a "supercharged surge in extreme wealth," new data shows.
In the U.S. alone, billionaires are 46% richer than they were in 2020, while the three wealthiest men â Elon Musk, Jeff Bezos and Larry Ellison â have increased their net worth by 84%, a recent Oxfam report on global inequality found.
Yet, despite the fact that America ranks first as the richest nation in the world in terms of gross domestic product, 37.9 million Americans live in poverty, accounting for 11.5% of the total population, according to the latest report from the U.S. Census Bureau.
/jlne.ws/3u8U8gb
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