| August 04, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
David Weild Speaks to JLN About the JOBS Act and What it Accomplished and the Challenges We Still Face
JohnLothianNews.com
David Weild, chairman of Weild & Co., Inc., played a significant role in helping create the environment for and passing of the JOBS Act, which transformed the way companies can raise money in U.S. markets.
John Lothian News interviewed Weild for a podcast about the impact of the JOBS Act and what it accomplished, what challenges it left unaddressed and what we need to do to meet those challenges.
Listen to the podcast »
| | | | | | Lead Stories | | | Are US stocks bulls right to be so optimistic?
Ethan Wu - Financial Times
The year 2022 was agonising for US stocks. Not only did they fall excruciatingly far, with a 20 per cent retreat in the S&P 500 over the 12 months. But they also dropped in a relentless way.
There was never any capitulation, the cleansing fire of panic selling that makes room for the next rally. Instead, stocks clip-clopped down 1 to 2 per cent at a time â it was orderly but painful.
/jlne.ws/3DGVakn
ETF Winners And Losers: Micro-Cap Returns - Volatility In The Market Spikes SPIKES Futures
Markets Insider
We performed a screening of small-cap ETFs, defined as having Assets Under Management (AUM) below $400 million - to determine what funds had the largest positive and negative returns on the week, according to data from etfdb.com. Only non-leveraged funds were considered.
/jlne.ws/3KsJB4f
Maersk forecasts long and deep contraction in global trade
Richard Milne - Financial Times
AP Moller-Maersk has warned that a contraction in global trade will prove longer and deeper than the co-ntainer shipping giant had feared, as companies cut their inventories in the face of recession risks in Europe and the US.
The Danish shipping and logistics group said on Friday that global container demand â regarded as a proxy for global trade â would fall by 1 per cent to 4 per cent this year, versus a previous forecast of plus 0.5 per cent to minus 2.5 per cent.
/jlne.ws/44TfriU
Crypto Hedge Funds Hit by Shutdowns, Lagging Returns in 2023
Yueqi Yang - Bloomberg
About 13% of crypto hedge funds have shut down so far this year, as weak performance and difficulties in accessing banking services weighed on the industry, according to data tracked by Switzerland-based investment adviser 21e6 Capital AG.
Crypto funds on average generated 15.2% return in the first half of 2023, underperforming Bitcoin, which gained 83.3% over the same period, the data provided to Bloomberg News showed.
/jlne.ws/3Ol2Huo
Market's Fear Gauge on Pace for Highest Close Since May
Angela Palumbo - Barron's
The market's fear gauge was up Thursday.
The CBOE Volatility Index, or the VIX, rose 0.3% Thursday to 16.13 and was on track for its highest close since May 31, according to Dow Jones Market Data.
/jlne.ws/3YjO2UM
Traders Wager the Bond Selloff is Just Beginning
Eric Wallerstein - WSJ
Long-term bond yields have climbed to the highest levels in months. Traders are wagering it's just the beginning of a continued surge.
Long-term yields sunk to record lows relative to their shorter-term counterparts, meandering there for months, as the Federal Reserve's inflation-fighting campaign drove short-term yields higher. Now, with strong economic data and a wave of government-debt sales, that relationship is normalizing, and traders don't want to miss out.
/jlne.ws/3OllDJd
| | | | | | Exchanges | | | Robinhood to Start Charging Customers Regulatory Fees for Options Trading
Hannah Miao - WSJ
Robinhood will begin passing on regulatory fees to customers for options trading starting Sept. 21, according to a notice sent to customers Thursday.
The online brokerage helped popularize options trading among everyday investors by not charging commissions, a practice Robinhood said it will continue.
/jlne.ws/3QuaI2C
Cboe Global Markets reports strong Q2 results off the back of solid options and global FX revenues
Wesley Bray - The Trade
Cboe Global Markets has reported strong earnings results from Q2, reflecting an increase in derivatives markets and data and access solutions net revenues. These were offset partially by declines in North American equities, Europe and Asia Pacific and futures business segments.
The trading venue achieved a net revenue of $467.1 million in Q2 2023, up 10% compared to the same period last year.
/jlne.ws/3DGzgOa
Crypto Options Volume on CME Rose to Nearly $1B in July: CCData; The increase in BTC options volume on the CME suggests that institutions might be hedging their positions.
Omkar Godbole - CoinDesk
Derivatives giant Chicago Mercantile Exchange (CME) recorded double-digit growth in crypto options trading volume in July, helped by investor appetite for hedging tools. Trading activity rose 24% to $940 million, registering the first increase in four months, according to data tracked by CCData. Volumes in bitcoin (BTC) options rose 16.6% to $734 million, while ether (ETH) options registered a 60% increase to $207 million.
/jlne.ws/3qgDhpw
Cboe Global Markets Reports Trading Volume for July 2023
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today reported July monthly trading volume statistics across its global business lines. The data sheet "Cboe Global Markets Monthly Volume & RPC/Net Revenue Capture Report" contains an overview of certain July trading statistics and market share by business segment, volume in select index products, and RPC/net capture, which is reported on a one-month lag, across business lines.
/jlne.ws/45co4EJ
Exchange operator Cboe's profit rises on swelled up trading volumes
Jaiveer Shekhawat and Laura Matthews - Reuters
Exchange operator Cboe Global Markets (CBOE.Z), on Friday reported a rise in its quarterly profit, driven by strong trading volumes as markets continue to rebound from last year.
Investors turned to Cboe's proprietary products, such as options linked to the VIX volatility index (.VIX) and the S&P 500 (.SPX), as they rejigged portfolios to hedge against risks brought on by economic uncertainty.
/jlne.ws/43VjKZt
Five-Year Gains of More than 60% for CALD, PPUT and VXTH Indices
Matt Moran - Cboe
This Index Insights Monthly Scorecard provides an update on the performance of dozens of indices that track the levels of volatility or the performance of hypothetical strategies that invest in options or futures.
/jlne.ws/3qnSuoL
| | | | | | Regulation & Enforcement | | | SEC Charges Massachusetts Resident with $1.2 Million Offering Fraud and Ponzi Scheme
SEC
The Securities and Exchange Commission today announced charges against Brockton, Massachusetts resident Jose D. Rocha for running a Ponzi scheme in which he took approximately $1.2 million from 13 investors in the Cape Verdean community around the Boston area. Rocha promised investors he would invest their money in securities with guaranteed returns of 12% per month. Instead, Rocha used only a small percentage of the money to make highly leveraged, and highly unsuccessful, trades of stock and stock options. Rocha spent the balance of the funds, the vast majority, to feed his gambling habit and embark on a luxury lifestyle. Rocha also used money from later investments to pay out on earlier investments.
/jlne.ws/43TsiQH
| | | | | | Strategy | | | Tech Options Bets Soar to New Heights
Eric Wallerstein - WSJ
Options traders are piling into bets on the Invesco QQQ ETF, which tracks the tech-heavy Nasdaq-100 index.
Traders exchanged 4.7 million options contracts tied to the popular fund on Tuesday. That was the most on record for the ETF, according to Cboe data. In high demand on Friday: call contracts that would payoff if the fund reached $382 a share by end of day. The ETF traded below $376 in the morning session.
/jlne.ws/43VlqSQ
Institutions Pour $1 Billion in Bitcoin Option Yet Price Stays Range Bound
Omar Elorfaly - CCN
Data from CryptoQuant shows that Bitcoin trading activity increased by 24% in July, reaching over $940 million. Volumes in bitcoin (BTC) options also increased by 16.6% to $734 million, while ether (ETH) options registered a 60% increase to $207 million.
Chicago Mercantile Exchange (CME) reports a substantial increase in Bitcoin options trading.
/jlne.ws/3Kphz9K
Index Options Strategies for the Rest of 2023
Kevin Davitt - Nasdaq
As we look out toward the end of 2023 in capital markets, I'm reminded of a floor-trading truism: "Buy protection when you can, not when you're forced to."
In reality, it's easier said than done.
When there's seemingly no reason to worry, protection becomes an afterthought. The problem is that demand for "coverage" tends to increase in a non-linear fashion.
/jlne.ws/43TyIzq
Shift in Market Momentum
Cboe (Video)
In #Vol411, Dan Deming @Djd551 lets us know that the nonfarm payrolls report came out today and was a little better than expected, gives us $VIX #futures and #VIX #options updates and more.
/jlne.ws/3KtK2Lx
| | | | | | Miscellaneous | | | Podcast: Julien Guyon on volatility modelling and World Cup draws
Mauro Cesa - Risk.net
In the past couple of years, quantitative research has been increasingly focused on modelling volatility. "Volatility is the single most important factor driving the asset price dynamics, and the most important factor in derivatives pricing and hedging," says Julien Guyon, professor of applied mathematics at the Ãcole des Ponts ParisTech.
/jlne.ws/45y9aJt
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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
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