| October 23, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Chevron Will Discontinue Oil Hedging Once Hess Deal Is Complete
Devika Krishna Kumar and Alex Longley - Bloomberg
Chevron Corp. said it will no longer use put options to hedge the crude oil production it's acquiring from Hess Corp. once the deal completes.
Hess is one of a handful of major US oil players that still participates in the options market to guarantee a minimum price for its barrels. In its most recent earnings report, published in July, the company had contracts in place that locked in $70 a barrel for about 80,000 barrels a day of WTI production, and $75 for about 50,000 barrels of Brent production for the rest of this year.
/jlne.ws/48XxeaW
Why Bill Gross expects a U.S. recession to begin by year's end
Joseph Adinolfi - MarketWatch
Bill Ackman isn't the only boldfaced Wall Street name who believes the U.S. economy is in worse shape than the official data suggest.
Bill Gross, a co-founder of fixed-income investing giant Pacific Investment Management Co., said Monday in a post on social-media platform X that the U.S. economy is likely headed for a recession by year's end.
/jlne.ws/3FvPKJW
The Fed Pivot That Turbulent Treasuries Need
Mohamed A. El-Erian - Bloomberg
Greater stability in US Treasuries is needed for the smooth functioning of other segments of the financial market, housing and the economy more broadly, both in America and beyond. Such stability is unlikely to be anchored anytime soon by either clarity about economic prospects or an abundance of volatility-repressing financial flows. What is needed is a policy anchor that, at this stage, must necessarily have a significant monetary policy component.
/jlne.ws/46ETogx
Bitcoin (BTC) History Supports Bulls After 10% Weekly Jump on ETF Talk
Akshay Chinchalkar - Bloomberg
The Bitcoin rally fueled by optimism about fresh demand from exchange-traded funds has pushed the largest cryptocurrency above $31,000 for the first time since July.
Monday's increase of as much as 4.1% comes on the back of a 9.8% jump in the seven days through Sunday â the biggest weekly advance since June. Traders are betting on the possible approval by as soon as the end of the year of the first US ETFs investing directly in the token. A US court is expected to formalize an ruling Monday in Grayscale's suit against the SEC.
/jlne.ws/3tI8CTF
Ex-Paulson Partner Shuts Hedge Fund Berry Street on Rising Rates
Nishant Kumar and Liza Tetley - Reuters
Orkun Kilic is closing his hedge fund Berry Street Capital Management four years after its inception, citing high interest rates and a challenging regulatory environment. The London-based fund, which pursued an event-driven strategy and oversaw over $900 million at its peak, has struggled in 2023, seeing losses of 4.2% in the nine months through September. Assets under management at the time of its decision to shutter were $575 million.
/jlne.ws/45NQR2h
| | | | | | Exchanges | | | CME in 'strongest position' for deals, CEO says, despite rising competition
Laura Matthews - Reuters
CME Group (CME.O) is in strong position to make acquisitions, armed with low debt and robust earnings, Chief Executive Officer Terry Duffy told Reuters, even as the world's largest derivatives exchange operator faces rising competition. Exchanges have been consolidating over the years and some have expanded beyond market-sensitive businesses like trading to pursue more predictable revenue.
/jlne.ws/3MbcUsK
Eurex expands its crypto derivatives suite with Options on FTSE Bitcoin Index Futures
Eurex
Eurex was the first exchange in Europe to offer Bitcoin index futures in April 2023. After this successful implementation, Eurex now expands the trusted path to crypto with the launch of Options on FTSE Bitcoin Index Futures. This is another major milestone in Eurex's ambition to offer secure access to cryptocurrencies in a regulated market environment.
/jlne.ws/3tDcsx7
Leaders in Trading 2023: Meet the nominees for... Outstanding Dark Trading Venue; Learn more about the four firms shortlisted for The TRADE's 2023 Editors' Choice Award for Outstanding Dark Trading Venue: including Cboe BIDS Europe, Goldman Sachs' Sigma X, Liquidnet and Virtu POSIT.
Editors - The Trade
Next up in our Leaders in Trading 2023 Editors' Choice Awards write up series, we bring you the shortlisted candidates for Outstanding Dark Trading Venue, showcasing exceptional performance in the non-disclosed trading arena. Over the last year, these dark trading venues have helped innovative the marketplace with a range of expansions in their respective product suites and expansions into new markets, alongside boasting increased volumes - making for a very competitive award category.
/jlne.ws/40aqpPy
| | | | | | Regulation & Enforcement | | | Cryptocurrencies under renewed focus after Hamas attacks
Scott Chipolina - Financial Times
The crypto industry's long quest for legitimacy and mainstream adoption hit another big hurdle this month, as US politicians and authorities intensified their focus on alleged links to the financing of terrorism.
High-profile lawsuits, including the criminal trial of Sam Bankman-Fried, founder of the failed FTX crypto platform, have already shed a harsh light on how the industry protects retail investors.
/jlne.ws/4734xrA
| | | | | | Strategy | | | Coinbase call options signal investor optimism despite recent drop
Rachael Rajan - Investing.com
Today, trading volumes for Coinbase (NASDAQ:COIN) call options, set to expire on Thursday, exceeded three times the usual rate. This surge suggests investors anticipate COIN to rise above $81.78 per share from its current $78.20, despite a 21.6% decrease from $99.77 since July.
/jlne.ws/3tGiHjP
The Market's Fear Gauge Is Rising
Connor Smith - Barron's
Uncertainty about the Israel-Hamas war and dysfunction in Congress has sent the market's fear gauge rallying this month.
The CBOE Volatility Index, or VIX, spiked to 23.08, though it was down 1.6% to 21.37 shortly after the market opened Monday.
/jlne.ws/3Q7gBRy
Morgan Stanley's Wilson: Next rally attempt will fail as investors are punishing earnings reports.
Steve Goldstein - MarketWatch
Third-quarter earnings season has only just begun and Morgan Stanley's pessimistic market strategist Mike Wilson is already labelling it a disappointment.
This week features a whole slate of megacap earnings (Microsoft, Alphabet, Meta Platforms, Amazon), along with third-quarter GDP, bond auctions and the possibility the 2-year Treasury will uninvert from the 10-year, having already done so against the 30-year. Earlier on Monday, the 10-year finally pierced 5%, for the first time in 16 years.
/jlne.ws/3MaVAnK
Equity Options
Cboe (Video)
In #Vol411, Joel Hawthorne @louiswinthrop shares some of the most active index #options traded so far today on the $SPX Index, as well as the most active #equity options traded so far today, reminds us of notable economic data to be on the lookout for this week and more.
/jlne.ws/3QpmQBz
| | | | | | Events | | | Global RMC 2024
Cboe
Cboe's premier Risk Management Conference is rising to the occasion this year, to leave you energized and empowered with new perspectives on trading and investing strategies.
Enjoy an elevation change and an entirely new vantage point of the latest products and strategies for managing risks, enhancing yields and managing volatility with fellow traders, investors, strategists, and researchers.
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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
Publisher | | | Sarah Rudolph
Editor-in-Chief
| | | Jeff Bergstrom
Editor
| | | Asma Awass
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