| January 08, 2024 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
Term of the Week: Option Style, A Driver for the Value of an Option Contract
JohnLothianNews.com
This video explores the key distinctions between European and American style options and touches on some exotic options like Asian, Bermuda, and Canary styles. Understanding these different styles is crucial for anyone trading or investing in options, as they can significantly impact the value and flexibility of your contracts. Let's dive in and demystify the world of option styles.
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Futures Discovery: Careers in the Futures Industry
JohnLothianNews.com
In episode 4 of Futures Discovery, we're diving into the diverse world of careers within the futures industry. From the fast-paced world of trading to the analytical realms of risk management and technology, there's a multitude of career paths in this dynamic field.
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| | | | | | Lead Stories | | | Treasury Market's Wild Day Boosts, Then Batters, a Big Options Bet
Edward Bolingbroke - Bloomberg
A wild day of trading in US Treasuries transformed a big bearish options bet from a winning wager into a practically worthless position as a flurry of jobs and service-industry data whipsawed the market. The trade, placed on Thursday afternoon, stood to benefit from a surge in US 10-year yields - which is just what happened Friday morning in the minutes after a US labor report revealed stronger-than-expected job and wage growth in December. In those moments, the position briefly soared in value to a level that would deliver as much as a five-fold gain on the initial bet.
/jlne.ws/47FY71v
Oil prices hit by resumed hedge fund short selling
John Kemp - Reuters
Portfolio investors resumed selling petroleum futures and options, especially those tied to crude, amid renewed doubts about growth in oil consumption in 2024.
Hedge funds and other money managers sold the equivalent of 66 million barrels in the six most important petroleum futures and options contracts over the seven days ending on Jan. 2.
/jlne.ws/3ROrp8c
Coinbase is planning a pivotal acquisition that will allow it to launch crypto derivatives in the EU
Ryan Browne - CNBC
Coinbase plans to offer crypto-linked derivatives in the European Union, and it's planning to acquire a company with a license to do so. The U.S. cryptocurrency exchange told CNBC exclusively that it entered into an agreement to buy an unnamed holding company which owns a MiFID II license. MiFID II refers to the EU's updated rules governing financial instruments. The EU updated the legislation in 2017 to address criticism that it was too focused on stocks and didn't consider other asset classes, like fixed income, derivatives and currencies.
/jlne.ws/4aJu8Iz
Wall Street Is Trying to Nail Down Timing of Fed's QT Taper
Alex Harris - Bloomberg
With the Federal Reserve telegraphing plans to begin slowing the pace of its balance-sheet unwind, market participants are rushing to determine just how soon the end of quantitative tightening could start.
Strategists at Bank of America Corp. and Barclays Plc predict that the central bank is likely to begin tapering the program in April, with the runoff wrapping up by mid-summer. Deutsche Bank AG expects the unwind start in June, while Morgan Stanley is telling clients that policymakers want to give markets plenty of time to prepare, and won't act until September.
/jlne.ws/48N9w0q
Private Equity's Horrible, No-Good '23 Set to Continue Into '24
Allison McNeely, Dawn Lim, and Layan Odeh - Bloomberg
For private equity, 2023 turned out to be a terrible, horrible, no good, very bad year, and the pain won't likely end until it's clear that central banks have truly decided to stop hiking rates. US private equity firms bought or sold $871 billion in assets last year, the lowest level since 2016, according to data provider PitchBook. And the projected rate of distributions to private equity investors was the second-smallest in a quarter century, investment bank Raymond James says.
/jlne.ws/3NU9lbm
Would-be spot bitcoin ETF issuers kick off fee war ahead of approval deadline
Niket Nishant, Hannah Lang and Suzanne McGee - Reuters
A raft of investment managers on Monday disclosed the fees they plan to charge for their proposed spot bitcoin exchange-traded funds (ETF), in another step toward approval this week by the U.S. securities regulator.
BlackRock (BLK.N), VanEck, Ark Investments/21Shares and Bitwise, among others, said in filings with the Securities and Exchange Commission (SEC) that they expect to significantly undercut the average market rate for U.S. ETFs as the battle for market share heats up ahead of an SEC approval deadline on Wednesday.
/jlne.ws/3NWr8i6
| | | | | | Exchanges | | | Cboe Options ADV Reaches All-Time High
Cboe
Cboe Global Markets, Inc., the world's leading derivatives and securities exchange network, reported December and full year 2023 trading volume statistics and projected rate per contract/net revenue capture for the fourth quarter of 2023 across its global business lines.
/jlne.ws/3tHKfWt
Cboe launches more weekly Russell options after record year
Radi Khasawneh - FOW
Cboe Global Markets has started listed Tuesday and Thursday weekly Russell 2000 options, as new data shows that last year's record was driven by growth across both long and short-dated activity
/jlne.ws/47uj13t
| | | | | | Regulation & Enforcement | | | SEBI restricts naked short selling, no day trading for institutional investor; SEBI quoted that the introduction of a full-fledged securities lending & borrowing scheme[SLBM] shall be simultaneous with the introduction of short-selling by institutional investors
Outlook India
The Securities and Exchange Board of India stated that naked short selling will not be permitted, however, investors among all categories will be allowed for short selling and also futures and option trades. Investors would be necessarily honour their job of delivering securities at time of settlement, said SEBI. No institutional investor would be allowed for intra-day trading or settle their transactions, said SEBI on short selling and borrowing scheme. Short selling refers to selling of stock that is not owned by the seller at the time of trade.
/jlne.ws/41QnVqe
| | | | | | Moves | | | Andy Lowenthal announced on LinkedIn he has started the "next chapter of my professional life" after officially retiring from Cboe Global Markets after 40 years and 21 roles. He plans for 2024 to travel with his wife Tracey, including today, to the College Football National Championship game. In his note, he mentioned how his family had been victims of Nazi terror and he had "true passion for the institutions that have been created to make sure we never forget and to that end, I recently was named to the Illinois Holocaust Museum and Education Center Board of Directors. Additionally, I am the Co-Chair of the Chicago chapter of U.S. Holocaust Museum's Children of Survivor Committee."
He is off to explore new microbreweries and craft beers across the world, will ski more and is open to board work. He also expressed his appreciation to all his friends and colleagues at Cboe. He will be missed at the Cboe, he was a great contributor and steady presence.
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| | | | 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
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| | | Jeff Bergstrom
Editor
| | | Asma Awass
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