| March 07, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
Iwanaga Moriyuki - OSE President & CEO Offers Update on Exchange Initiatives
JohnLothianNews.com
Iwanaga Moriyuki, President and CEO of the Osaka Exchange (OSE), updated John Lothian News about several important exchange initiatives at Japan Exchange Group (JPX) in an interview over Zoom last week. He spoke with John Lothian from Tokyo, with an image of the Osaka Exchange projected behind him, and gave JLN an exclusive interview.
Iwanaga spoke about the new derivatives trading platform for Tokyo Commodity Exchange (TOCOM) and OSE, J-GATE 3.0, launched last September and how that has improved the markets.
Watch the video »
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Russian Stocks Deemed "Nearly Worthless"; S&P Global Merges with IHS Markit; CME Group to Launch Micro-Sized Bitcoin and Ether Options
JohnLothianNews.com
"Alex Perry's Optionstopia" takes a look at this week's options news highlights: Russian Stocks Deemed "Nearly Worthless"; S&P Global Merges with IHS Markit; CME to Launch Micro-Sized Bitcoin and Ether Options
Term of the Week: What can options do from Euronext
Watch the video »
| | | | | | Lead Stories | | | Trading Firm DRW Allows Crypto Traders to Hedge Risk With Bilateral Options
Yueqi Yang - Bloomberg
DRW Holdings LLC said it's the first large trading firm to offer over-the-counter bilateral crypto options, paving the way for more institutional investors to deepen their participation in the cryptocurrency market.
Cumberland, the Chicago-based firm's crypto division, is now a liquidity provider for the so-called bespoke options, targeting major crypto holders like Bitcoin miners and investors that need to hedge risks or generate yields. The offering will allow traders to customize each trade's expiry date, strike price and underlying coins.
/jlne.ws/3vMpQxW
Short Sellers Who Foresaw Russia Stock Slump on Ukraine War Can't Cash Out
Cristin Flanagan - Bloomberg
Short sellers were right when they bet against Russia. Whether they'll collect their winnings of more than $723 million is another matter.
That's how much the shorts stand to make on a basket of Russian stocks listed in the U.S., U.K. and Europe that have plunged since the start of this year, according to data tracked by S3 Partners. Just one hitch: Trading suspensions tied to the Ukraine invasion have kept those bearish investors from cashing out, and there's a risk that their profits could dwindle before trading resumes.
/jlne.ws/3sNkbpE
Shock Commodities Spike Threatens to Push Yen to Six-Year Low
David Finnerty - Bloomberg
The headwinds for yen are getting stronger and threaten to push the currency to a six-year low against the dollar.
A spike in global commodity prices spurred by Russia's invasion of Ukraine is likely to worsen Japan's trade deficit as the country is a net oil importer and may push the yen to 120 per dollar this year, said Mitsubishi UFJ Morgan Stanley Securities. Mizuho Bank Ltd. and TD Securities both predict the currency will weaken to 117 by the end of June, from 114.82 on Friday.
/jlne.ws/3tyWSz3
Faltering Market Liquidity Renews Prodding for Treasury Buybacks
Liz McCormick and Alex Harris - Bloomberg
The escalation of liquidity troubles in U.S. Treasuries caused by the strains tied to Russia's invasion of Ukraine is giving fresh impetus to calls for the government to revive purchases of older securities -- a move that could improve trading conditions.
The U.S. Treasury last bought back government securities in earnest in April 2002, as part of a program launched in an era of budget surpluses to retire debt with high interest-rate coupons. While U.S. debt managers over recent years have been doing "small-value" operations to ensure the readiness of its buyback infrastructure, Wall Street has long said they should create a new program.
/jlne.ws/35AUpfi
Macro Hedge Fund EDL That Held On to Russia Bets Suffers Record Loss
Nishant Kumar - Bloomberg
Macro hedge fund manager Edouard de Langlade suffered his worst monthly loss after holding on to his Russian equity bets as the country began a full-scale invasion of Ukraine.
His EDL Global Opportunities fund, which was off to its best start to a year since launching in 2015, erased the gains and plunged about 11.2% last month, according to investor letters seen by Bloomberg. In response, the firm had been cutting risk in its trading book, de Langlade said in an interview. While the fund still has some exposure to silver, it's working on unwinding its small U.S. fixed income bets at better prices, he said.
/jlne.ws/3pLbCts
Wall St skids on inflation jitters as oil prices surge
Lewis Krauskopf, Devik Jain and Sabahatjahan Contractor - Reuters
Wall Street's main indexes fell sharply on Monday, weighed down by declines in megacap growth names and financial shares, as the prospect of a ban on oil imports from Russia sent crude prices soaring and fueled concerns about rising inflation.
Oil prices jumped to their highest levels since 2008 as the United States and European allies considered banning Russian oil imports, in response to the country's conflict with Ukraine, while it looked less likely that Iranian crude would return swiftly to global markets. Energy shares, the standout S&P 500 group so far this year, was one of the only sectors logging a gain on Monday.
/jlne.ws/3hNRtyA
Russian rouble tanks as bids evaporate in offshore trade
Reuters
Russia's rouble lost over a fifth of its value in thin trading on Monday to a fresh record low, with local markets closed for trading until at least Wednesday.
The rouble has lost nearly 50% of its value against the greenback since the start of the year, with losses sharply accelerating since Russia invaded Ukraine on Feb. 24, a move that sparked sweeping sanctions from various governments across the world.
/jlne.ws/3I39kwh
| | | | | | Exchanges | | | MIAX and Bermuda Stock Exchange Announce Participation in World Federation of Exchanges Ring the Bell for Gender Equality 2022 Ceremony
MIAX
Miami International Holdings (MIH), the parent holding company of MIAX and Bermuda Stock Exchange (BSXTM), announced today that the two exchanges are participating in the World Federation of Exchanges Ring the Bell for Gender Equality ceremony on Tuesday, March 8, 2022. The campaign serves as a global initiative by exchanges around the world to foster greater gender equality and highlight the benefits of a diverse and inclusive workplace.
/jlne.ws/2K3gU18
Shanghai International Energy Exchange has released its Announcement of Market Makers for Futures and Options
SHFE
Shanghai International Energy Exchange has released its Announcement of Market Makers for Futures and Options as follows:
/bit.ly/3tuiWKU
| | | | | | Strategy | | | Flight to 'safe haven' funds runs its own risks
Chris Flood - Financial Times
Russia's invasion of Ukraine has created an unexpected crisis for investors â many of whom had been hoping for a return to economic normality after two years of the Covid pandemic.
Right now, the conflict threatens to disrupt supplies of essential commodities, from both Russia and Ukraine, to western economies already beset by worries about accelerating inflation. Price rises had reached multi-decade highs in the US and Europe even before the fighting began.
/jlne.ws/3Kqo0qu
| | | | | | Education | | | How to Hedge Surging Commodity Prices When Implied Volatility Explodes
David Becker - FX Empire
Commodity prices have rocketed higher, and the rally has made it challenging to use options to hedge your exposure. Typically, you might consider using options contracts if you want to buy or sell and limit your risk.
If you thought corn or oil prices had moved too high too fast, you might consider using a put to bet on a decline in the price. One of the issues you might face if prices have raced is that the premiums charged for buying options have accelerated sharply.
/jlne.ws/35yjEiC
| | | | | | Miscellaneous | | | Apple's Next Event Arrives With the Stock Market in a Fragile Place
Jack Denton - Barron's
Apple 's product launches are always closely watched affairs. But the latest event, scheduled for Tuesday, likely will be monitored even more so because what's at stake goes beyond a new iPhone or Mac laptop.
As the world's most valuable public company and a leader in Big Tech, news about Apple (ticker: AAPL) can have an outsized influence on the technology sector and the rest of the stock market.
/jlne.ws/3pJEqT4
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