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 | Jeff Bergstrom
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Observations & Insight
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Lead Stories
Citadel Securities Seeks to Stop Launch of IEX Options Venue
Bernard Goyder and Katherine Doherty - Bloomberg
Citadel Securities is asking the Securities and Exchange Commission to stop a new exchange founded by the stars of Michael Lewis's 2014 book Flash Boys from entering the options market. As part of its planned expansion into the options market, exchange operator IEX Group Inc. would be able to delay, cancel and reprice options orders on behalf of market makers - a new mechanism that IEX has touted as a way to avoid so-called latency arbitrage that it say adds operational costs to the market.
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Three Decades of FLEX Innovation: Meet Cboe's New FLEX vs. Listed Complex Orders
Cboe
Since their launch in 1993, FLEX options have stood as a testament to Cboe's commitment to innovation and responsiveness to customer feedback. Designed to offer customizable contract terms - such as strike price, expiration date, and exercise style - FLEX options have evolved into one of the fastest-growing segments in the U.S. listed options market.
Now, with our latest FLEX update on June 23 - FLEX vs. Listed Complex Orders - Cboe is once again redefining what's possible in options trading.
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Goldman Trader Sees Risks Stacking Up for Lower-Quality Stocks
Jan-Patrick Barnert - Bloomberg
As stocks push toward all-time highs and a fear of missing out on the rally spreads among investors, a senior Goldman Sachs Group Inc. trader warned that there are valid reasons to meet the latest gains with caution. This is especially true of lower-quality parts of the market, where stocks are being driven higher by short sellers forced to cover their positions, rather than by positive corporate fundamentals, Louis Miller, a managing director at Goldman, wrote in a note to clients on Tuesday.
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Fear Gauge Falls With Wall Street Feeling Zen After Cease-Fire, Powell Testimony
George Glover - Barron's
Between a Middle-East truce and signs that interest-rate cuts are coming, investors were finding plenty of reasons to feel calm on Wednesday.
The Cboe Volatility Index, or VIX, fell by a quarter of a point to just over 17 in early trading. The widely followed fear index tracks S&P 500 options contracts, with any reading of below 20 tending to signal relatively low volatility.
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Everything Is an ETF Now; Autocallables, Microsoft Strips, BNB treasury strategy and on-cycle recruiting.
Matt Levine - Bloomberg
Autocallable ETF
There is a market for insurance against stock market crashes. Most investors are more or less long the stock market - they own diversified portfolios of stocks - and some of them worry that they will lose money if the stock market goes down. They would like to buy long-term black-swan-type insurance against a disastrous market crash. But who wants to sell that insurance? Well, Warren Buffett, occasionally.1 But in general, this sort of insurance is not that appealing for the seller: The trade is "you get paid a little bit each year when times are good, but you lose a ton of money when the stock market crashes." That's the worst time to lose a ton of money! Also, if you are the buyer of that insurance, you might worry about credit risk: If you are buying insurance that pays off if the market crashes, how can you trust that the seller will pay you? Again, most investors are long the stock market, so if you buy crash insurance from some investor, and then the market crashes, she will probably have lost a ton of money herself and might be unable to pay you.
/jlne.ws/3GfnG1p
The Big Loser From the 'Genius Act' Is $156 Billion Crypto Giant Tether; Bill laying out rules for stablecoins would force issuers like Tether to be audited and end risky practices
Alexander Osipovich, Vicky Ge Huang and Angus Berwick - The Wall Street Journal
Congress is set to bring stablecoins into the financial mainstream, with legislation that has sparked a frenzy of interest from startups, banks and even retailers like Walmart that were previously wary of cryptocurrencies. But the bill, known as the Genius Act, has a tough message for Tether, the No. 1 player in stablecoins: Shape up or get kicked out of the U.S. market. The legislation, which passed the Senate last week, aims to bring more oversight to stablecoins-digital tokens with a fixed price, typically $1. Stablecoins function as a bridge from regular money to the crypto world, allowing people to make payments or send funds overseas using the technology behind bitcoin, but without bitcoin's wild volatility.
/jlne.ws/441rwVg
Exchanges
ETD Volume - May 2025
FIA
Worldwide volume of exchange-traded derivatives reached 8.82 billion contracts in May. This was down 7.9% from April 2025 and down 51.1% from May 2024.
Options growth has slowed. Global trading of options reached 6.45 billion contracts in May, down by more than 58% from last year, with most of that decline taking place in the Asia-Pacific region.
Global trading of futures reached 2.37 billion contracts in May, down 1.6% from the same month last year.
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CME Group (CME) Plans Index for Mexican Equity Market Exposure
Neha Gupta - Insider Monkey
CME Group Inc. (NASDAQ:CME) is one of the 12 best cryptocurrency and blockchain stocks to buy. On June 17, the company announced plans to launch E-Mini S&P BMV IPC Index futures, pending regulatory review. A computer engineer working in a futuristic office, programming algorithms to mine cryptocurrency. The new index seeks to offer broad exposure to the Mexican Equity Market in the future. It will track the most liquid stocks listed on the Bolsa Mexicana de Valores (BMV).
/jlne.ws/4njWj7g
Trader Alert 25-21: Version 1.10 is now available on MEMX Options
MEMX
MEMX Options MEMO SBE, FIX, and FIX Drop specifications version 1.10 are available for download in the upcoming version link here.
/jlne.ws/3HV8tmQ
Liquidity Boost for ETF Quote on Demand through Societe Generale; Today, SIX welcomes Societe Generale as our newest liquidity provider in Quote on Demand (QOD), the leading on-exchange RFQ solution for ETF trading on SIX Swiss Exchange.
SIX
ETF Quote on Demand (QOD) is the leading on-exchange RFQ service that allows institutional investors to execute orders in a bidding process directly with registered liquidity providers - of which Societe Generale is now the sixth. The service offers price improvements compared to EBBO (European Best Bid and Offer) while benefitting from fully integrated, efficient post-trade processing.
/jlne.ws/45z8gzw
Regulation & Enforcement
Brussels set to disregard ECB warnings over stablecoin rules, FT reports
Reuters
The European Commission is set to announce new rules for the fast-growing stablecoin market in the coming days, despite warnings from the European Central Bank (ECB) that the proposed standards could destabilise the region's banks during periods of market volatility, the Financial Times reported on Wednesday. The European Union's executive arm is planning to issue formal guidance proposing that stablecoins issued outside the bloc are treated as interchangeable with same-branded versions allowed only on EU markets, the newspaper said, citing people briefed on its contents.
/jlne.ws/4nil6IP
DTCC Comment On Canadian Trade Reporting Rules Rewrite
Mondovisione
Canada's Rewrite rules will take effect on July 25, 2025, introducing significant regulatory updates designed to align the country's trade reporting standards with global benchmarks. These changes aim to improve data quality, transparency, and consistency across the board. Michele Hillery, DTCC Managing Director and Head of Repository & Derivatives Services, shared her thoughts on the impact of these updates:
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Technology
Trading Technologies' TT platform wins Best Sell-Side OMS at TradingTech Insight USA Awards 2025; Fifth significant award win for company in past five weeks
Trading Technologies
Trading Technologies International, Inc. (TT), a global capital markets technology platform services provider, last night won the award for Best Sell-Side Order Management System (OMS) at the TradingTech Insight USA Awards for 2025, presented in New York. The honor is the fifth win for the company, platform and executives in the past five weeks. Alun Green, TT's EVP Managing Director, Futures & Options, said: "We're incredibly proud that TT OMS has earned recognition as a stand-out solution from the very institutions that rely on it daily. The expansion of the TT platform to deliver multi-asset functionality enables our clients to leverage sophisticated order management tools for high-, low- and no-touch workflows, across their global trading operations, complete with customized reporting and FIX or API-driven integrations. We're committed to continuously enhancing our offering, providing a cost-effective, comprehensive solution to address the evolving and complex requirements of the world's leading institutions."
/jlne.ws/44thlsB
Sterling Trading Tech wins Best Market Simulation Solution in the TradingTech Insight Awards USA 2025; Sterling Trading Simulator recognized for excellence in trading education
Chicago, June 25, 2025 (GLOBE NEWSWIRE) -- Sterling Trading Tech (Sterling), a leading provider of professional trading technology solutions, today announced that the Sterling Trading Simulator has been named the Best Market Simulation Solution in the 2025 TradingTech Insight Awards USA. The award recognizes Sterling's commitment to innovation in trader education and development. The Sterling Trading Simulator enables brokers, prop trading groups, and educational institutions to train users in a real-time simulated environment that mirrors Sterling's flagship professional trading platforms. Supporting both equities and options, the simulator provides a risk-free arena to test strategies and practice advanced functionality.
/jlne.ws/44xF0rR
Exchange Data International (EDI) Partners With Ortex To Provide Advanced Short Interest Data
Exchange Data International (EDI) has partnered with Ortex, a leading provider of financial analytics, to offer Ortex's comprehensive Short Interest Data. This partnership will enable EDI clients to access high-quality, real-time short interest data, including key metrics such as shares on loan, cost of borrow, and the ORTEX Short Score, a unique measure of short interest activity.
/jlne.ws/4nkdxRW
Strategy
Dollar's Falling Volatility Creates Appeal as Carry-Trade Funder
Marcus Wong - Bloomberg
Selling the dollar to invest in emerging-market currencies looks increasingly appealing, as greenback volatility drops relative to other traditional funders, according to a Bloomberg analysis.
The "sell-America" trade driven by the US fiscal situation and President Donald Trump's tariffs is making the greenback less sensitive to risk events. The 90-day correlation between a dollar-funded carry trade into six emerging-market currencies and the S&P 500, a proxy of risk sentiment, has tumbled. However, those for the euro and yen are the highest in five years.
/jlne.ws/4ejWIlX
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