| July 28, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
Vermiculus' Chris Dorougidenis talks about mixing microservice tech with the cloud to make new CSD systems
JohnLothianNews.com
Chris Dorougidenis, project manager and partner with Vermiculus Financial Technology, was interviewed by JLN Correspondent Julie Ros at the recent FIA International Derivatives Week (IDX) in London.
Watch the video »
| | | | | | Lead Stories | | | Bearish traders swarm AMC options as stock conversion plan faces doubts
Saqib Iqbal Ahmed - Reuters
Shares of AMC Entertainment Holdings Inc have been hit by a wave of bearish options bets amid uncertainty over the company's stock conversion plan. The one-month moving average of open puts versus call options on AMC hit 1.7-to-1 on Thursday, the most bearish the measure has been in at least four years, Trade Alert data showed. Puts convey the right to sell shares at a fixed price in the future while calls offer the right to buy shares.
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Eurex wargames pricing derivatives during disruption events
Samuel Wilkes - Risk.net (Subscription)
Disruption has been the dominant theme in Europe's stock markets in recent years. When the coronavirus spread across the continent in March 2020, there were growing calls for exchanges to be shut down as financial markets went into freefall. On October 19 last year, closing auctions failed in several of Euronext's stock markets - the result, the exchange operator said, of a glitch within a third-party middleware system. And in February 2022, the invasion of Ukraine prompted suspensions of
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Is this as calm as it gets for markets? Just look at the VIX
Jason Kirby - The Globe and Mail (Subscription)
War rages in Europe, China's economy is faltering and the U.S. Federal Reserve may yet have more rate hikes up its sleeve. But for investors, all is Zen.
The past few months have brought a stretch of remarkable calm for stocks, with shares of tech companies soaring and pulling the S&P 500 index with them. So far this year there have been just 16 days on which the U.S. benchmark index traded down more than 1 per cent, and the last time was back in mid-May, the longest such stretch since 2019.
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Bitcoin ETFs' arrival is unlikely to trigger the crypto's further rally. Here's why
Frances Yue - MarketWatch
Crypto investors have long been hoping that an exchange-traded fund investing directly in bitcoin could boost adoption of the cryptocurrency and lead to a price rally.
But that may not happen, according to Stuart Barton, co-founder and chief investment officer at Volatility Shares, issuer of the 2x Bitcoin Strategy ETF BITX, +1.43%, a leveraged bitcoin futures ETF.
A spot bitcoin ETF is not the "holy grail" for the industry; instead, bitcoin futures ETFs are the way to go forward, said Barton.
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Analysis: Low rupee volatility lulls Indian firms into hedging less
Nimesh Vora - Reuters
The Indian rupee's plummeting volatility, mainly due to the central bank's stranglehold on the currency, is leading both importers and exporters to hedge less of their foreign exchange exposure.
This, in turn, means companies run the risk of being caught off-guard when volatility picks up, exacerbating swings in the currency.
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| | | | | | Exchanges | | | ICE's Global Commodity and Energy Markets Reach Record Open Interest
Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, today announced record open interest (OI) across its global commodity and energy futures and options markets. On July 25, 2023, ICE hit record OI of 55.4 million contracts across commodities futures and options, up 14% year-over-year (y/y), with record OI of 50.9 million in energy futures and options, also up 14% y/y.
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MIAX Options And MIAX Emerald Options - Change To Opening And Intra-Day Quote Width Requirements For Certain Symbols Effective July 28, 2023
MIAX
MIAX Options and MIAX Emerald Options have expanded the maximum valid bid/ask differentials for Market Makers for certain symbols traded on the Exchanges. The expanded bid/ask differentials for the symbols will be in effect beginning Friday, July 28, 2023.
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Derivatives and FX trading revenue decline offsets otherwise solid Q2 for Euronext; Exchange reported a Q2 revenue and income of EUR368.1 million, down 1.8% year-on-year, driven by decreased revenues in derivatives and FX trading.
Wesley Bray - The Trade
Euronext has reported a 'solid' second quarter driven by growth in non-volume-related business which was offset by declines in trading revenues. The exchange reported a Q2 revenue and income of EUR368.1 million, down slightly by 1.8% compared to Q2 2022.
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| | | | | | Regulation & Enforcement | | | Crypto Exchange Binance Asks Court to Dismiss CFTC Lawsuit
Allyson Versprille, and Olga Kharif - Bloomberg
Binance Holdings Ltd., operator of the world's largest crypto exchange, and its co-founder Changpeng Zhao asked a US federal judge to dismiss a lawsuit filed by the Commodity Futures Trading Commission.
Attorneys for Binance and Zhao â also known as CZ â submitted the motion on Thursday, arguing the regulator is overreaching and using theories relying on inconsistencies while also making unsound claims and irrelevant allegations.
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Exclusive: India regulator seeks curbs to limit retail investors' derivatives risk
Jayshree P Upadhyay - Reuters
India's market regulator, seeking to reduce risks for retail investors, will propose linking the amount of equity derivatives they may trade to their wealth, two people with direct knowledge of the matter said.
With Indian share prices near record highs, drawing increased retail investor interest, the regulator is concerned smaller players could suffer losses on derivatives if markets turn volatile.
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CFTC Approves Final DCO Reporting and Information Requirement and Three Proposals at the Commission Open Meeting
Commodity Futures Trading Commission
The Commission unanimously approved a final rule amending certain reporting and information regulations applicable to derivatives clearing organizations (DCOs). These amendments, among other things, update information requirements associated with commingling customer funds and positions in futures and swaps in the same account, revise certain daily and event-specific reporting requirements in § 39.19(c), and codify in an appendix the fields that a DCO is required to provide on a daily basis under § 39.19(c)(1).
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Statement of Commissioner Kristin N. Johnson in Support of Reporting and Information Requirements for Derivatives Clearing Organizations
CFTC
Today, the Commission considers several amendments to the Part 39 regulations and a delegation provision in Part 140. In January 2020, the Commission amended many of the provisions in Part 39 in order to enhance certain risk management and reporting obligations, clarify the meaning of certain provisions, and streamline registration and reporting.[1] Last November, the Commission considered a proposed rulemaking seeking to update certain Part 39 regulations to reflect developments in risk management. I support the Commission's consideration of these amendments designed to improve derivatives clearing organization (DCO) risk management practices and clarify reporting requirements set out in Part 39.
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| | | | | | Technology | | | CME Builds Data Platform with Google Cloud
Shanny Basar - Traders Magazine
CME Group has completed building its data platform with Google Cloud and is preparing to launch services and analytics to clients, after the exchange operator and technology provider announced a partnership in 2021.
Sunil Cutinho, chief information officer at CME, said on the results call on 26 July that the data platform has been built and is available. He said: "We have developed a set of services that we are working on releasing to our clients."
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| | | | | | Moves | | | Top Goldman Sachs executive to leave in blow to asset management ambitions
Joshua Franklin and Antoine Gara - Financial Times
Goldman Sachs executive Julian Salisbury is leaving the bank to join Sixth Street Partners, a blow to chief executive David Solomon's efforts to build up its asset and wealth management division.
Salisbury's departure is the latest from Goldman's asset management business, where he was chief investment officer, with other senior executives including Katie Koch and Luke Sarsfield having left within the past year. Goldman on Friday also confirmed that Takashi Murata, co-head of Asia Pacific private investing, is departing the bank.
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| | | | | | Strategy | | | Opinion: You can still run with the stock market's bulls, but watch the exits
Lawrence G. McMillan - MarketWatch
The stock market, as measured by the S&P 500 Index SPX ), has been moving upward. The U.S. benchmark index is essentially crawling up the higher "modified Bollinger Bands" (mBB), which is a bit of an overbought condition, but not a sell signal.
The next major resistance appears to be in the 4650 area, which at one time seemed far away but is now within range. There is minor support at 4527 (last week's lows), with stronger support below that, at 4440, 4385, 4330 and 4200. Given the strong upward momentum of the market, a couple of those could be violated without giving the bull market any problem, but a fall below 4330 would be a game changer.
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Traders Rolling Positions
Cboe (Video)
In #Vol411, Dan Deming @Djd551 has your #markets update: 10-day realized vol & 30-day realized vol hit 52-week lows this week, traders rolling #VIX Aug calls to Sept, a look at the VIX #futures term structure & more.
/jlne.ws/3YeZAJ1
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