| March 12, 2024 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
|
| | | | Lead Stories | | | Broadridge launches global futures and options trading platform; The platform offers a distributed architecture that enables operations from any jurisdiction; a top three futures commission merchant has signed as an anchor client.
Claudia Preece - The Trade
Broadridge has launched a global futures and options (F&O) software-as-a-service (SaaS) platform, aimed at expanding derivatives trading capabilities. The full hosted platform has been designed for futures commission merchants (FCMs) and agency brokers. The move comes in response to "a lack of customised solutions for each workflow, leading to fragmented experiences for buy-side clients and challenges for sell-side firms in gaining a comprehensive view of trading activity and risk management," said the firm.
/jlne.ws/3wT2ae4
Options Traders' Unease Focuses on CPI More Than Fed, Citi Says; Derivatives imply biggest S&P 500 move on CPI since last April; S&P may react stronger to CPI than to the Fed's rate decision
David Marino - Bloomberg
The options market is more concerned about a potentially big S&P 500 move on Tuesday's inflation report than it is about the Federal Reserve's interest rate decision next week, Citigroup analysts said. The S&P 500 Index is implied to move 0.9% in either direction Tuesday, based on a strategy known as an at-the-money straddle â that's when a trader buys an equal number of calls and puts with the same strike price and expiration. It's the biggest implied move ahead of a consumer price index report since April 2023, the bank's equity strategists led by Stuart Kaiser said in a note on Monday.
/jlne.ws/4cgEdh1
Singapore Exchange to Launch Short-Term Interest Rate Derivatives; SGX said the futures would allow investors to hedge and trade fluctuations in interest rates in a cost-effective manner
P.R. Venkat - The Wall Street Journal
Singapore Exchange plans to launch short-term interest rate derivatives to cater to a market increasingly seeking to hedge in an uncertain rate environment. The exchange will introduce short-term rate futures linked to the Singapore Overnight Rate Average and the Tokyo Overnight Average Rate, which would allow investors to hedge and trade fluctuations in interest rates in a cost-effective manner, SGX said Tuesday.
/jlne.ws/3Th7G1s
US SEC Delays Approval Of Options Trading On Bitcoin ETFs
Paul Godwin - Tekedia
The Securities and Exchange Commission (SEC) has delayed its decision on whether to approve options trading on bitcoin exchange-traded funds (ETFs). The SEC announced on Monday that it would extend the review period for the proposed rule change by another 45 days, until May 25, 2024. Options trading on bitcoin ETFs would allow investors to buy or sell contracts that give them the right, but not the obligation, to buy or sell a specified amount of bitcoin at a predetermined price and time. This would provide more flexibility and leverage for traders who want to bet on the price movements of the cryptocurrency.
/jlne.ws/3Vi4yoG
Reddit Targets $6.4 Billion Valuation as IPO Nears
Thomas Westwater - tastylive
Reddit looks for $6.4 billion valuation in IPO. The stock is set to start trading on March 21. Reddit, the website known as the "front page of the internet," is seeking a valuation of $6.4 billion for its upcoming U.S. initial public offering (IPO). The social media platform's IPO has been years in the making and should serve as a bellwether for the IPO market in 2024 following a series of disappointments in 2023. Reddit updated its S-1 with the Securities and Exchange Commission (SEC) on Monday, which unveiled the valuation, shares offered, and the target price. Reddit aims to sell 22 million shares, with an anticipated price target of between $31.00 and $34.00 per share.
/jlne.ws/49NjLmh
| | | | | | Exchanges | | | NSE to cut cash, derivative transaction charges by 1%; rival BSE stock slumps
Vidya Sreedhar - ETMarkets
The National Stock Exchange (NSE) will cut the transaction charges on trades in both cash and derivatives segments by 1%. Currently, the transaction charge in the equity delivery or cash segment is 0.00325% and in the derivatives segment, it is 0.0019%. The reduction in charges will be effective from April 1, 2024, it said.
/jlne.ws/3IAWPe4
Cboe Silexx enhances Multi Order Ticket and Complex Order Book
Maria Nikolova - FX News Group
Cboe Silexx, a multi-asset order execution management system (OEMS) that caters to the professional marketplace, has announced a series of enhancements as part of version 24.2. A new column is now available within the Multi Order Ticket, allowing users to see their current position at the leg level. To add, right-click on an existing column header and select Show Column Chooser > enable POS.
/jlne.ws/4acuFS3
Global Derivatives Markets Must Become More Efficient to Grow
Coalition Greenwich Press Release
Efficiency efforts in the derivatives market are being driven both by headwinds in the form of regulation and economic pressures, and the tailwind of strong projected volume growth amid continued global market volatility. Stephen Bruel, Coalition Greenwich Nearly 70% of the 210 derivatives market participants contributing to a new study by Coalition Greenwich in partnership with FIA said the derivatives clearing business must enhance capital efficiency to generate needed capacity and support future growth.
/jlne.ws/43dVrr2
SGX Group to launch interest rate derivatives in 2H 2024
SGX Group
Singapore Exchange (SGX Group) will introduce short-term interest rate futures linked to the Singapore Overnight Rate Average (SORA) and Tokyo Overnight Average Rate (TONA), as global investors increasingly seek more transparent and cost-effective tools to hedge and trade fluctuations in interest rates. Three-month SORA and TONA Futures contracts are targeted to be launched in the second half of this year, subject to regulatory approval. These contracts build upon SGX Group's current suite of long-term interest rate futures - 10-year Full-Sized and Mini Japanese Government Bond (JGB) futures - which have attracted diverse international market participants.
/jlne.ws/3TgOUHs
Short-Term Options Have Become Popular In Commodities
CME Group
In the oil market, WTI weekly options have become the fastest-growing energy products at CME Group, reaching record highs in trading volume. The short tenor provides more flexibility to traders to adjust their portfolios more frequently in response to sudden market events regardless of their time horizons. Rising interest rates, weather events, elevated geopolitical risks, and the expansion of short-dated options have contributed to the popularity of short-term options in commodity markets.
/jlne.ws/3TvEkhh
| | | | | | Regulation & Enforcement | | | The Rise and Risks of India's Derivatives Market: A Call for Stronger Regulation
Quiver Quantitative
The recent surge in stock speculation in India, highlighted by an unprecedented volume of equity options contracts traded, is drawing global attention for its sheer scale and potential implications. In 2023, India astonishingly accounted for 78% of the global equity options market, with the National Stock Exchange witnessing a 153% increase in stock index options traded, reaching 84.3 billion contracts.
/jlne.ws/3vfrvhB
| | | | | | Strategy | | | Wall Street's Risky Bet Returns: The Resurgence of Short-Volatility Trading
Quiver Quantitative via Investing.com
The resurgence of short-volatility trading, an infamous and high-risk investment strategy on Wall Street, signals a dramatic change in market dynamics. As technology giants like Nvidia (NASDAQ:NVDA) Corp drive indices to new peaks, there's a parallel, less-noticed trend gaining momentum - massive investments in short-volatility bets through Exchange-Traded Funds (ETFs). These ETFs, which sell options on stocks or indexes, have seen their assets balloon to a staggering $64 billion. This new wave of short-volatility positions, while distinct from their direct predecessors that crashed spectacularly in 2018, brings its own set of risks and nuances to the financial markets.
/jlne.ws/3v8s0Km
XRP, MATIC, SOL Options Goes Live on Deribit, Here Are Pre-Bitcoin Halving Target Price; Ripple's XRP, Polygon (MATIC), Solana (SOL) options are live on Deribit, with first trades indicating bullish price target ahead BTC halving.
Varinder Singh - CoinGape
Deribit, the world's largest crypto derivatives exchange, announced the launch of three altcoins options â Solana (SOL), XRP, and Polygon (MATIC). Solana price hit a new 2-year high of $155 as Deribit launched SOL a day earlier on Monday, with the first few traders making bullish calls.
/jlne.ws/3T6pYm4
Ether Put Demand Signals Weakness After $4K Price Breakout; By locking in the right to sell ETH at a specified price, options traders are preparing for short-term weakness after the cryptocurrency hit a two-year high.
Omkar Godbole - CoinDesk
Ether (ETH) options traders are bracing for near-term price weakness a day after the cryptocurrency convincingly rose past $4,000 to the highest since late 2021. Ether's one-month call-put skew, an options market measure of sentiment, has turned negative, hinting at the relative richness of puts, or options used to protect against bearish price trends. The 60-day gauge has also flipped in favor of put options, while the 90-day and 180-day metrics remain positive, according to crypto options flow on Deribit tracked by Amberdata. Deribit is the world's leading cryptocurrency options exchange, accounting for over 85% of the global activity.
/jlne.ws/3Td75hi
| | | | |  | | | | JLN Options is sponsored by: | | | | | |  |  |  |  |  | | | | | |  |  | | |
|
|
| | | |
| | | | 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
Intern |
|
|
| |
Disclaimer: All John Lothian Newsletters, JohnLothianNews.com, MarketsWiki.com and MarketsReformWiki.com are products of John Lothian News, a division of John J. Lothian & Company, Inc. The opinions expressed in all John J. Lothian & Company, Inc. publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers. Futures and options trading involve risk. Past results are no indication of future performance. Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any website or newsletter content.
© 2023 John J. Lothian & Company, Inc. All Rights Reserved. |
|
|
