| September 06, 2024 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | In August, Cboe Global Markets reported its August monthly trading volume statistics that saw significant trading volumes across its global derivatives and global FX markets. On August 5th, 4.5 million S&P 500 Index (SPX) options contracts were traded, marking the second-highest single-day volume ever recorded. Additionally, total volume in Cboe Volatility Index (VIX) options reached 26.1 million contracts, with an average daily volume (ADV) of 1.2 million contracts, the second-best monthly volume after February 2018. In global FX, the market set new monthly volume records, including a spot full amount average daily notional value (ADNV) of $15.3 billion and a Cboe swap execution facility (SEF) non-deliverable forwards ADNV of $1.5 billion.
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New Eurex CEO Outlines Vision for European Derivatives Exchange
JohnLothianNews.com
In a recent video interview at the FIA IDX conference in London, Robbert Booij, the newly appointed CEO of Eurex Frankfurt AG, shared his insights and plans for the leading European derivatives exchange. Speaking with John Lothian News, Booij reflected on his transition from the banking sector to heading an exchange and outlined his strategic vision for Eurex.
Watch the video »
| | | | | | Lead Stories | | | China's $100 Billion Short Against Dollar Enriches Hedge Funds; State-owned banks are helping support the yuan and the trade is saddling them with huge potential losses.
Bloomberg News
China's embrace of a stealthy strategy to manage its currency is exposing the nation's banks to billions of dollars of potential losses - and handing easy profits to investors on the other side of the trade. At the center of it all are transactions known as foreign-exchange swaps. These have quietly become a key tool for state-run Chinese banks seeking to prop up the yuan during periods of outsized selling pressure, according to people familiar with the matter, who asked not to be named discussing a sensitive subject.
/jlne.ws/47gIM8K
Bitcoin continues to fall as crypto-market sentiment shifts into 'extreme fear'
Frances Yue - MarketWatch
Bitcoin fell to a one-month low on Friday, as the crypto market sentiment shifts to "extreme fear."
The largest cryptocurrency by market capitalization fell 3.9% to as low as $53,824, the lowest level since Aug. 5, according to Dow Jones Market Data. Bitcoin is roughly 27% lower from its record high at $73,798 reached in March.
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How Nvidia Became the Market's Most Important Stock, in Charts; The graphics-chip maker lost nearly $280 billion in market value Tuesday, the most ever by a company in a single session
Alana Pipe and Jack Pitcher - The Wall Street Journal
Major stock indexes are more beholden to the moves of a handful of big tech companies than ever. And none more so than Nvidia, the market darling of the artificial-intelligence craze. Investors' fervor for the graphics chipmaker sent it to a multitrillion market valuation in record time. The stock is the best performer in the S&P 500 this year, more than doubling in 2024 after more than tripling in 2023. Now the third-largest company in the S&P 500 by market value, Nvidia is known for greater volatility than some of its megacap peers. Its earnings and conference calls have become must-watch TV, with the report leading to market reactions that rival those seen after reads on the entire U.S. economy.
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Nvidia's Stock Volatility Is the Price You Pay for Market-Leading Returns
Tae Kim - Barron's
Not Easy. Hi everyone. I'm sure you saw the news. On Tuesday, Nvidia's stock price dropped 9.5%, erasing $279 billion in shareholder value-the largest daily market cap loss for any U.S. company ever.
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| | | | | | Exchanges | | | Nodal Exchange achieves new August volume records in power (up 58%) & environmental (up 189%) market
Nodal Exchange
Nodal Exchange announced new power and environmental trading records in August 2024. In power, Nodal set a calendar month record for August with 266 million MWh of traded power futures volume in the month, up 58% from the prior year. Nodal continues to be the market leader in North American power futures having the majority of the open interest with 1.4 billion MWh. Environmental futures and options on Nodal Exchange set a new all-time volume record of 105,571 lots in August, up 189% from 36,495 lots a year earlier. The monthly volume topped the prior record in July of 64,562 lots.
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Multi Commodity Exchange of India (MCX) signs MoU with ITM Skills
MCX
Multi Commodity Exchange of India (MCX), India's leading Commodity Derivatives Exchange has signed a formal Memorandum of Understanding (MoU) with the ITM Skills University - ITM Business School (ISU-IBS), a leading institution in higher education, skill development & employment generation, to contribute towards knowledge sharing, training and undertake various educational initiatives in the commodity derivatives markets.
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Construction Underway on MIAX Sapphire's Physical Trading Floor
Shanny Basar - MarketsMedia
In August this year Miami International Holdings (MIH), which builds and operates regulated trading venues across asset classes, received a $100m investment from Warburg Pincus and launched its fourth national securities exchange for US multi-listed options.
MIAX Sapphire began operating on August 12 with the rollout of options on its first symbol, IBM, before adding more symbols each week.
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| | | | | | Regulation & Enforcement | | | India to tighten derivatives rules despite investor pushback
Jayshree P Upadhyay and Ira Dugal - Reuters
India's markets regulator will tighten derivative rules to increase entry barriers and make it more expensive to trade as it tries to limit retail investors speculating on risky contracts, said four sources with direct knowledge of the matter.
Securities and Exchange Board of India (SEBI) will limit the number of options contract expiries to one per exchange a week and nearly triple the minimum trading amount, the sources said, in rules similar to those proposed in July, despite pushback from traders and brokers.
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| | | | | | Moves | | | Tilly to take over as CEO of Clear Street; Edward Tilly joined Clear Street in July, less than a year after his resignation from CboeâEUR¯following the conclusion of an investigation that determined he had failed to disclose personal relationships.
Claudia Preece - The Trade
Edward Tilly is set to take over as chief executive of Clear Street, two months after having been appointed president at the firm. He replaces CEO and co-founder Chris Pento. Upon his departure, Pento is set to assume an executive and partner role at White Bay, the family office of co-founder Uriel Cohen. He will remain on the board of directors at Clear Street.
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| | | | | | Strategy | | | Behind the Ticker: Goose Hollow Multi-Strategy Income ETF (GHMS)
Cboe (Video)
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| | | | | | Education | | | Empowering Retail Investors Creates Powerful Impact
Fred Tomczyk - Cboe
You can't talk about the great "Rise in Retail" without acknowledging the growth in options trading. Across the board, since 2020, total options average daily volume has grown from 29.04 million contracts in 2020 to 47.6 million as of August 2024.
As the pioneer of listed options, Cboe has been at the forefront of innovation and accessibility since 1973. In other words, we've seen it and heard it all before. In 50 years, options have evolved from a small asset class, only available on a trading floor in Chicago, to a major piece of the trading ecosystem and used by people all over the world.
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| | | | | | Events | | | Kevin "Lex" Luthringshausen will once again host Tradier's virtual Options Summit on September 18th. The summit, themed "Adapting Trading Strategies to Major Market Events," is particularly timely given the upcoming election. The event will feature 10 speakers over 6 hours, with live interactive panels. To register, visit this link.
Risk.net's RiskLive Roadshow will take place in Berlin on October 1, 2024, offering insights into key risk indicators such as market, credit, liquidity, and operational risks. The event will feature a panel of industry experts, including Erik Vynckier from Foresters Friendly Society, Joost Dijkers from Transtrend, and Justin C. McCarthy, PRM, ORM from PRMIA (Professional Risk Managers' International Association). Attendees can expect discussions on the latest trends and challenges in risk management. Register HERE.
| | | | | | Miscellaneous | | | AI-Powered Lie Detectors Can Help Tell If You're Lying on a Zoom Call; New tech trained on CIA tactics may be coming to an office near you.
Tracy Alloway - Bloomberg
Phil Houston knows how to spot a lie. A former career CIA officer who's sometimes been called the human lie detector, he literally wrote the book on detecting deception. His techniques are used by US intelligence agencies, businesses and billionaires. Now he's seeking to harness the power of artificial intelligence to supercharge his system - and market it to hedge funds listening to earnings calls, investigators interviewing suspects, employers considering potential new hires, or anyone else trying to discover duplicity.
/jlne.ws/3MBmsxe
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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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Editor-in-Chief
| | | Jeff Bergstrom
Editor
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