| February 14, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Cboe takes on Euronext in European single stock options trading
Huw Jones - Reuters via Nasdaq
Cboe Global Markets Inc CBOE.Z said on Tuesday that its European arm will offer trading and clearing in single stock options on top European companies from November, pitting itself against incumbents such as Euronext, Eurex and ICE.
Cboe Europe Derivatives (CEDX) will initially offer equity options on companies from Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Spain and Sweden.
/jlne.ws/3RVQEFf
****JB - See also: The Trade's story, Cboe Europe Derivatives expands into single stock options.
ION incident is still affecting reporting, although most clients are now back online; Although the impact of the cyber-attack has been mitigated, the Commodity Futures Trading Commission (CFTC) has warned that its weekly Commitments of Traders report will remain delayed, while Euronext has also delayed derivatives reporting.
Laurie McAughtry - The Trade
The cyber-attack that brought down the derivatives platform of ION Group on 31 January continues to see its effects ripple through the market, despite reportedly bringing customers back online from last week. According to a statement from CFTC, the agency is still monitoring reporting delays due to the incident at ION Cleared Derivatives, which provides order management, execution, trading and trade processing services.
/jlne.ws/3YPURwh
Markets ride $1 trillion global liquidity wave
Jamie McGeever - Reuters
The explanation for the whoosh higher in risk assets this year may be as simple as it is surprising: eye-popping liquidity from central banks.
Largely thanks to the Bank of Japan hoovering up domestic government bonds to keep its 'yield curve control' policy intact, and stimulus from the People's Bank of China (PBOC), aggregate liquidity from the official sector has surged in recent months.
/jlne.ws/3YrTunI
'Shadow trading' ETFs
Robin Wigglesworth - Financial Times
"Insider traders have used exchange traded funds to conceal billions of dollars' worth of trades, according to a team of academics who say their finding may be just the "tip of the iceberg".
Their analysis suggests at least $2.75bn worth of anomalous trades occurred in US-listed ETFs before merger and acquisition announcements between 2009 and 2021."
/jlne.ws/3I34MYy
Fed officials keep options open on peak interest rate
Ann Saphir and Lindsay Dunsmuir - Reuters
The Federal Reserve will need to keep gradually raising interest rates to beat inflation, three U.S. central bank officials said on Tuesday, as two of them indicated that borrowing costs may ultimately need to go higher than is now widely expected.
"We must remain prepared to continue rate increases for a longer period than previously anticipated, if such a path is necessary to respond to changes in the economic outlook or to offset any undesired easing in conditions," Dallas Fed President Lorie Logan said in a speech in Texas.
/jlne.ws/3I0ps3t
40% of converted ETFs have suffered net outflows
Brian Ponte - Financial Times
Dozens of shops have converted mutual funds to ETFs, but not all conversions have attracted sales, data shows.
Some 37 actively managed mutual funds have been converted to ETFs since early 2021, according to data from Morningstar Direct. Those funds have recorded a combined $10.5bn in net inflows since they became ETFs, the database shows, but most of those new assets went into four ETFs sponsored by Dimensional Fund Advisors.
/jlne.ws/3Iqjx9s
| | | | | | Exchanges | | | Cboe Europe Derivatives to Expand into pan-European Single Stock Options
Cboe Global Markets
Cboe Global Markets Inc. (Cboe: CBOE) today announces that Cboe Europe Derivatives (CEDX), its pan-European equity derivatives exchange, is planning to expand its product suite to include single stock options on leading European companies. These products are expected to be available for trading in November 2023 and cleared by Cboe Clear Europe, the leading pan-European clearing house, subject to the necessary regulatory approvals.
/jlne.ws/40ToTRC
CME Group to Launch Event Contracts on Bitcoin Futures on March 13
CME Group
CME Group, the world's leading derivatives marketplace, today announced it will expand its suite of event contracts to include Bitcoin futures on March 13, pending regulatory review."Our new event contracts on Bitcoin futures provide a highly transparent and less complex way for investors to access cryptocurrency markets - with the added benefit of a fully regulated platform," said Tim McCourt, Global Head of Equity and FX Products at CME Group. "These contracts, which track the daily price moves of our deeply liquid benchmark Bitcoin futures, offer an innovative, lower-cost way for investors to trade their views on the up or down price moves of bitcoin."
/jlne.ws/3In1ssx
| | | | | | Strategy | | | What Moves The VIX?
Cboe (Video)
In today's #Vol411, @RussellRhoads talks about how and why the $VIX Index can be down on a day when $SPX is also down.
/jlne.ws/3RWdr3H
The SPIKES Index Might Be A More Stable, Accurate Measure Of Volatility Than VIX
Rachael Green - Benzinga
SPIKES Volatility Index is a measure of the 30-day expected volatility for the S&P500 ETF (SPY) and may be gaining in popularity as the new way to look at volatility, especially among traders.
Volatility trading has become a popular means of hedging portfolios or turning market assumptions into tradable opportunities, and subtle differences in the methodologies used to calculate SPIKES and VIX could make the former a more suitable index for those kinds of short-term trades. Here's a quick look at how the two volatility measures differ and why that matters.
/jlne.ws/3xnwydt
| | | | | | Miscellaneous | | | What Layoffs? Top Wall Street Traders Score Giant Paydays
Maureen Farrell and Rob Copeland - NY Times
As workers around the country frantically negotiate severance packages amid tens of thousands of layoffs, employees in a tiny, influential and often secretive corner of Wall Street are being promised some of their biggest paydays ever.
Welcome to the world of elite hedge funds, where risky bets using esoteric number-crunching and cutthroat strategies, applied to the same economic and market uncertainties that have roiled corporate America and led to job cuts, have produced gigantic profits.
/jlne.ws/3I0z52f
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| | | Jeff Bergstrom
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