| September 14, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Triple-Witching Day: Are Options Markets Being Manipulated?
Mark Hulbert - Barron's
Be on your guard against market manipulation on Friday, Sept. 15, which is a triple-witching day.
"Triple witching" refers to those four days each yearâthe third Fridays of March, June, September, and Decemberâin which stock options, stock index futures, and stock index options all expire. It's widely known that such days often experience unusually heavy volume and volatility. But what has been less well-known is that prices on these days display a puzzling and costly pattern, according to a just-completed academic study. Retail options traders are the victims.
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Triple witching day: analysts brace for volatility as $3.4 trillion in stock options set to expire Friday
Joseph Adinolfi - MarketWatch
Friday could be a historic day for the U.S. options market, according to a derivatives strategist at Goldman Sachs Group.
As trading in U.S. stock options, especially extremely short-dated zero day to expiration options, continues to boom, contracts attached to $3.4 trillion worth of U.S. stocks, exchange-traded funds and equity indexes like the S&P 500 are set to expire Friday during September's expiry for monthly and quarterly options, according to the latest figures from John Marshall, head of derivatives research at the investment bank that were accurate as of midweek.
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First ETF to trade in zero-day options launches in the US; Complexity of the product and the 'casino' nature of its ultra-short puts prompts concerns
Steve Johnson - Financial Times
The first exchange traded fund to trade in "zero-day-to-expiry" options, one of the hottest investment trends of the year, has launched in the US. Zero day options - contracts with a maturity of 24 hours or less that allow the purchaser to buy or sell a security or asset at a specific price at a specific time - have exploded in popularity in the past year. While the rise of zero-day options has led to concerns over their potential impact on market volatility, they have given ETFs another asset to trade. Almost inevitably, given the ETF market's reputation as a hotbed of innovation, that opportunity has now been exploited.
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First ETF to trade zero-day options makes its market debut. Two more are in the works.
Joseph Adinolfi - MarketWatch
The first exchange-traded fund promising to actively trade so-called "zero-day to expiry" or "0DTE" options made its market debut on Thursday, and two more are expected to launch in the not-too-distant future.
Defiance ETFs, an boutique ETF firm with just under $900 million in assets under management, launched what it's calling the Defiance Nasdaq 100 Enhanced Options Income ETF on Thursday.
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Here's everything we know about zero-day options, the risky stock-market 'lottery tickets' captivating Wall Street and Reddit
Joseph Adinolfi - MarketWatch
Retail investors are reportedly treating them like lottery tickets. Large funds are using them to tactically shield their portfolios from potential hazards. Sophisticated traders are using them to siphon profits from daily market swings.
They are called zero-day to expiry options, or "0DTEs," and they have captured the attention of both professional and amateur traders alike while helping to fuel a boom in options trading that is transforming markets.
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Are Zero DTE Options Just Gambling? - Market Measures
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.
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Fed economists sound alarm on hedge funds gaming US Treasuries
Davide Barbuscia - Reuters
Researchers at the Federal Reserve have issued warnings in recent weeks about possible disruptions in U.S. Treasuries due to the return of a popular hedge fund trading strategy that exacerbated a crash in the world's biggest bond market in 2020. Hedge funds' short positions in some Treasuries futures - contracts for the purchase and sale of bonds for future delivery - have recently hit record highs as part of so-called basis trades, which take advantage of the premium of futures contracts over the price of the underlying bonds, analysts have said.
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| | | | | | Exchanges | | | FTX gets court approval to sell crypto assets
Dietrich Knauth - Reuters
Bankrupt crypto exchange FTX received U.S. court permission on Wednesday to liquidate cryptocurrency assets, a move the company said would allow it to repay customers in U.S. dollars and minimize risks related to price volatility in crypto markets.
U.S. Bankruptcy Judge John Dorsey approved FTX's proposal at a court hearing in Wilmington, Delaware, allowing FTX to sell up to $100 million in cryptocurrency per week and enter into hedging and staking agreements that will allow FTX to minimize the risk of price volatility and earn passive income on more mainstream crypto assets like bitcoin and ether.
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Cboe Digital Settlement Service Successfully Clears First Trade Between Nonco and DV Chain
Cboe
Cboe Digital is pleased to announce it has successfully cleared its first trade from Nonco U.S., a subsidiary of one of the largest over-the-counter (OTC) providers in Latin America, and DV Chain, an affiliate of Chicago-based proprietary trading group DV Trading and provider of world-class cryptocurrency trading and technology, on its new Cboe Digital Settlement Service.
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Chief Executive Officer Andrej Bolkovic on Year One at OCC
OCC (Video)
This week our CEO Andrej Bolkovic celebrates one year with OCC! In honor of his anniversary, we sat down with him to learn more about how his first year went, what progress has been made on our transformation, and what the future might hold for OCC. Watch now:
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7 Best Crypto Options Trading Platforms in 2023
Jon Nielsen - CoinCodex
Options are a sophisticated trading instrument that allows traders to manage their risk or speculate on price movements. Options are gradually gaining popularity among cryptocurrency traders, as an increasing number of crypto traders is pursuing more complex strategies in their hunt for profits.
In this article, we'll be showcasing the 6 best crypto options trading platforms. We considered several key aspects of crypto options trading, including liquidity, fees, ease of use, supported cryptocurrencies and more.
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On the suspension of trading on the derivatives market of the Moscow Exchange
MOEX
On September 13, 2023, during the morning session on the derivatives market of the Moscow Exchange, an error was detected in the operation of the trading and clearing system. In this regard, it was decided to suspend trading on the derivatives market from 9:30 Moscow time. Trading on the remaining markets of the Moscow Exchange: the stock market, bond market, money market, foreign exchange market and precious metals market was carried out as usual.
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| | | | | | Regulation & Enforcement | | | Miami International Holdings Announces that MGEX has Filed a Petition for Rehearing Following Courts Decision to Vacate SECs Exemptive Order Related to SPIKES Volatility Index Futures
MIAX
Miami International Holdings, Inc. (MIH), owner of Miami International Securities Exchange, LLC (MIAX ), MIAX PEARL, LLC (MIAX Pearl ), MIAX Emerald, LLC (MIAX Emerald ), Minneapolis Grain Exchange, LLC (MGEXTM), LedgerX LLC (LedgerX), The Bermuda Stock Exchange (BSX), and Dorman Trading LLC today announced that MGEX has filed a petition for panel rehearing and rehearing en banc of the U.S. Court of Appeals for the District of Columbia's July 28, 2023 decision to vacate the U.S. Security and Exchange Commission's Exemptive Order related to SPIKES Volatility Index Futures (the "Order"). The Order permits the listing of SPIKES Futures as a futures contract on MGEX, which serves as the exclusive market for this contract.
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Private funds prepare to spend billions on compliance after SEC rule; New regulations on disclosure and expenses are 'keeping general counsels up at night'
Brooke Masters - Financial Times
Private equity, venture capital and hedge fund groups are preparing to spend billions of dollars on compliance and legal advice as they cope with the biggest regulatory changes to hit the industry since the aftermath of the 2008 crisis.
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CFTC's Division of Clearing and Risk Issues Extension of No-Action Letter for Taiwan Futures Exchange
Commodity Futures Trading Commission
The Commodity Futures Trading Commission's Division of Clearing and Risk today issued a no-action letter providing that DCR will not recommend the CFTC take enforcement action against Taiwan Futures Exchange (TAIFEX) for failing to register as a derivatives clearing organization (DCO) as required by Section 5b(a) of the Commodity Exchange Act (CEA).
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| | | | | | Strategy | | | Bitcoin Prices Form a 'Death Cross.' Is Another Selloff on the Way?
Jack Denton - Barron's
Bitcoin and other cryptocurrencies advanced Thursday but the picture for prices took a gloomy turn as the largest digital asset formed a so-called death cross, a technical indicator that could suggest selling pressure ahead.
The price of Bitcoin has risen 1% over the past 24 hours to just shy of $26,300, continuing to rebound from a selloff to $25,000 earlier this week, marking the lowest levels since mid-June. The biggest crypto remains close to the $26,000 mark that has provided support for much of the past month amid a historically slow period for digital asset trading, with volumes and volatility falling to multi-year lows.
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The VIX9D
Cboe (Video)
Back to basics: In today's #Vol411, Scott Bauer @cboesib gives us a helpful overview of what the $VIX Index, VIX 9D, contango and backwardation entail.
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| | | | | | Miscellaneous | | | Fallen Chicago Fire Lt. Kevin Ward honored by loved ones, fellow firefighters. 'He put his service above himself,' mayor says.
Jake Sheridan - Chicago Tribune
The mourners who were gathered at the funeral of Chicago Fire Department Lt. Kevin Ward faced a tough challenge in summing up his vibrant life in sentences. The firefighter, who was seriously injured while battling an August residential blaze in Norwood Park and died weeks later, enjoyed a life teeming with off-beat passions, they said.
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***** "Ward, 59, had been an Alaskan commercial fishing boat's deckhand, a Colorado hotel's chef and a Chicago Mercantile Exchange options trader."~JJL
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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
Publisher | | | Sarah Rudolph
Editor-in-Chief
| | | Jeff Bergstrom
Editor
| | | Asma Awass
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