| April 07, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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Eventus CEO Travis Schwab on Regulation, Transformation and Crypto at Boca 2022
JohnLothianNews.com
Eventus CEO Travis Schwab on Regulation, Transformation and Crypto at Boca 2022 John Lothian News Eventus Systems' CEO Travis Schwab has been coming to the FIA conference in Boca Raton for 20 years and said it was great to be back to seeing clients in person again this year. Schwab spoke with John Lothian News at the conference about Eventus' marketing, regulatory and volatility challenges, and the burgeoning crypto field. https://jlne.ws/3jhdxCi
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| | | | | | Lead Stories | | | Volatility surge causes liquidity strain in rate options market as Fed tightens
Gertrude Chavez-dreyfuss - Reuters
A surge in hedging to protect against aggressive Federal Reserve tightening has caused liquidity problems in the interest rate options sector, reflecting a trend that has been going on in some parts of the bond market.
Strong demand has hoisted volatility on so-called swaptions, or options on interest rate swaps, which give the buyer the right to enter into a contract in the future at a pre-determined price. Swaptions are one segment of the roughly $490 trillion over-the-counter interest rate derivatives market.
/jlne.ws/3r5WYxy
Russia, U.S. Face-Off Boosts Default Risk; Prices of derivatives tied to the creditworthiness of the Kremlin are showing a high probability of a Russian default
Alexander Saeedy and Matt Wirz - WSJ
The derivatives market is flashing signals that the tit-for-tat between the U.S. Treasury and the Kremlin is increasing the likelihood of a Russian government default after Russia's Ministry of Finance announced Wednesday it will restrict the ability of some foreign investors to convert their payments into dollars. The cost of buying a five-year derivatives contract for protection against a Russian government default, also called a credit-default swap, jumped on Wednesday to around 75% of the total value of the debt insured, according to data from ICE Data Services
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Hedge Funds Run by Chase Coleman, Philippe Laffont See Reversal in 2022 Tumult
Hema Parmar and Katherine Burton - Bloomberg
Year after year, the largest hedge funds that sprung from Julian Robertson's Tiger Management posted stellar results. But in 2022, they're losing money on both of their favored trades: Technology giants and unicorns.
/jlne.ws/3uUDrkE
Stocks are heading toward a bear market in 2023, Deutsche Bank warns
Sam Ro - MarketWatch
Deutsche Bank made waves when its economists became the first of the major Wall Street banks to say the U.S. economy would soon go into recession.
"Two shocks in recent months, the war in Ukraine and the build-up of momentum in elevated U.S. and European inflation, have caused us to revise down our forecast for global growth significantly," Deutsche Bank economists, led by David Folkerts-Landau and Peter Hooper, wrote in a 68-page note to clients Tuesday. "We are now projecting a recession in the U.S. and a growth recession in the euro area within the next two years."
/jlne.ws/3v0O3Pg
How Putin's War Will Unbalance Fragile Energy Market for Years
Stephen Stapczynski - Bloomberg
The natural gas market's delicate balance is crumbling, putting the global economy under further strain as nations struggle to secure enough fuel.
War, the energy transition, severe weather and surging demand are creating a period of upheaval that is tightening supply like never before. Nations and companies are grappling to secure enough gas amid a global power crunch as economies recover from the pandemic.
/jlne.ws/3LIl896
| | | | | | Exchanges | | | CME Group to Launch Monday and Wednesday Gold, Silver and Copper Weekly Options on May 2
CME Group
CME Group, the world's leading derivatives marketplace, today announced that it will launch Monday and Wednesday Gold, Silver and Copper Weekly options on May 2, pending regulatory review. These new options contracts will complement the company's existing Friday Weekly, End-of-Month and Quarterly options on Gold, Silver and Copper futures. "Fed policy and economic uncertainty are key focuses for our clients across the globe, which also have implications for metals markets," said Jin Chang, Managing Director and Global Head of Metals at CME Group. "We continue to see strong demand for our short-term options, which provide clients with more flexibility to manage short-term price risk. The introduction of Monday and Wednesday Weekly options on Gold, Silver and Copper futures will provide enhanced hedging capabilities around market moving events, including weekend headlines and FOMC meetings."
/jlne.ws/3r6xBvG
CME Group Achieves Quarterly International Average Daily Volume of 7.3 Million Contracts in Q1 2022
CME Group
CME Group, the world's leading derivatives marketplace, today announced that it achieved quarterly international average daily volume (ADV) of 7.3 million contracts in Q1 2022, up 18% year on year. Reflecting all trading reported from outside the United States, this volume was driven largely by growth in Equity Index products, up 31%, and Interest Rate products, up 19%.
/bit.ly/3v4WF7z
CME Group Offers Reference Rates on Additional Cryptocurrencies
Emily Nicolle - Bloomberg
CME Group Inc. is set to offer investors broadened access to a greater range of cryptocurrencies on traditional markets, launching 11 new reference rates and real-time indices.
Alongside its existing Bitcoin and Ether rates, the derivatives marketplace said its partnership with CF Benchmarks will expand to include reference rates and indices for Algorand, Bitcoin Cash, Cardano, Chainlink, Cosmos, Litecoin, Polkadot, Polygon, Solana, Stellar and Uniswap. Reference rates are usually used as a benchmark for other financial products.
/jlne.ws/3DPHFOy
| | | | | | Regulation & Enforcement | | | SEC Proposes Rules for the Registration and Regulation of Security-Based Swap Execution Facilities
SEC
The Securities and Exchange Commission today proposed new Regulation SE under the Securities Exchange Act of 1934 (the Exchange Act) to create a regime for the registration and regulation of security-based swap execution facilities (SBSEFs). The new regulatory framework was one of the major reforms required under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) relating to the over-the-counter derivatives market.
/jlne.ws/3jg181C
| | | | | | Strategy | | | A 'Time Arbitrage' Options Play on Tesla Stock
Steven M. Sears - Barron's
It will soon be truth or consequences time on Wall Street.
Many of the world's most important companies are about to start reporting quarterly earnings, providing investors with an opportunity to compare their estimates of reality with data and commentary from sophisticated corporate practitioners.
/jlne.ws/3v4vMjN
Bears take over after that S&P 500 breakout failed
Lawrence G. McMillan - MarketWatch
The S&P 500 index appeared to be on the verge of a major upside breakout about a week ago. In fact, the S&P did close above a double resistance area at 4600. But then the breakout failed, as it fell back and left a resistance level at last week's highs, 4637.
That now appears to have been a false upside breakout, since the S&P SPX, 0.07% has fallen back below its 200-day moving average, testing support at the 4420 level. A move above 4637 or below 4420 should be significant at this point.
/jlne.ws/3v1WvO7
| | | | | | Miscellaneous | | | In roiling markets, fraud rises. Banks want to understand why
Steve Marlin - Risk.net
Chaos and confusion are a breeding ground for dishonesty, in financial markets as elsewhere. The market volatility sparked by the Covid pandemic and, latterly, by events in Ukraine has raised the alert level for internal fraud within banks and other financial institutions. Managers are now scrambling to reassess their risk controls as sanctions against Russia force firms to dump investments or extricate themselves from business deals.
/jlne.ws/3JjJSmJ
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