| December 19, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Crypto Options Market Has Become More 'Interdealer' Since FTX's Blowup: Paradigm
Omkar Godbole - CoinDesk
The collapse of Sam-Bankman Fried's digital assets exchange, FTX, has had industry-wide ramifications, one of them being market makers increasing their share of crypto options trading volumes. As of Friday, the notional value of the month-to-date interdealer flow on the institutional-grade, over-the-counter (OTC) communications platform Paradigm was $633 million, or 43.5% of the total crypto options trading volume of $1,455 million. That's the highest since at least January this year.
/jlne.ws/3je1pp3
Hedge Fund Traders Seek Shelter From Lula in Bearish Stock Bets
Vinicius Andrade and Felipe Saturnino - Bloomberg
After a bumpy few weeks that saw investors bracing for a sharp deterioration in Brazil's fiscal outlook under Luiz Inacio Lula da Silva, some of the country's largest hedge fund managers have a clear message: stay away from stocks. A bearish wager against Brazil's equity market emerged as a key position at Legacy Capital, while XP Asset Management and Genoa Capital said they've also built short positions in local stocks using options. Verde Asset Management, whose flagship fund traditionally has about a quarter of its risk in equities, said that amount currently stands at 15%.
/jlne.ws/3hzv6QS
The Cost of Defending Hong Kong's Dollar Peg
Matthew Thomas - The Wall Street Journal
That is the stash of U.S. dollars that Hong Kong's Exchange Fund has sold this year to defend the peg between the Hong Kong dollar and its U.S. counterpart. Hedge fund managers Bill Ackman and Boaz Weinstein have become the latest high-profile investors to bet against the peg, buying put options that promise a big payout if it breaks.
/jlne.ws/3V2CTV6
The Fed's Inflation Projections Make No Sense: Fundstrat
Jennifer Sor - MarketsInsider
The Fed's inflation projections make no sense, and central bankers could have been misled by a cyberattack ahead of the December Federal Open Markets Committee meeting, according to Fundstrat's head of research Tom Lee.
Lee pointed to Fed Chair Powell's remarks after last week's FOMC meeting, where the head central banker said inflation was still well-above the Fed's 2% target and signaled interest rates would remain high through all of next year - something that has already weighed heavily on stocks in 2022.
/jlne.ws/3PC5yPM
U.S. Scores $4 Billion Windfall on Oil-Reserve Sales
David Uberti - WSJ
Volatile energy markets have made 2022 a big year for commodity traders. One of the biggest and perhaps most unlikely winners: The U.S. government.
Emergency releases from the U.S. Strategic Petroleum Reserve are slated to end this month, concluding an unusual attempt to lower gas prices after Russia's invasion of Ukraine sent oil prices soaring.
/jlne.ws/3PC6gwq
| | | | | | Exchanges | | | Future of cryptocurrency: CME's Terry Duffy, Cboe's Ed Tilly's views differ
Steve Daniels - Crain's Chicago Business
The shocking demise last month of FTX, one of the largest cryptocurrency exchanges in the world, followed by the arrest of founder Sam Bankman-Fried on fraud charges, capped a terrible year for digital currencies and raised questions about their future in the broader financial services arena.
If they have one, Chicago is home to two institutionsâCME Group and Cboe Global Marketsâwith the expertise and credibility to help pick up the pieces, along with a potentially lucrative opportunity.
/jlne.ws/3G6Wr6B
LSEG to acquire Acadia to enhance post trade offering
LSEG
London Stock Exchange Group plc (LSEG) today announces that it has agreed to acquire Acadia, a leading provider of automated uncleared margin processing and integrated risk and optimisation services for the global derivatives community. The acquisition furthers LSEG's strategy to enhance and grow its multi-asset Post Trade offering for the uncleared derivatives space.
/jlne.ws/3V8IXLG
| | | | | | Strategy | | | Open Interest
Cboe (Videoo)
Joel Hawthorne @louiswinthrop takes a look at index #options activity during Friday's quad witch and the $VIX complex in advance of Wednesday's expiration in today's #Vol411
/jlne.ws/3YxD79z
| | | | | | Miscellaneous | | | Individual Investors Hang On in Wild Year for Stocks While Pros Sell
Gunjan Banerji - WSJ
During the wildest year for global markets since 2008, individual investors have been doubling down on stocks. Many professionals, on the other hand, appear to have bailed out.
U.S. equity mutual and exchange-traded funds, which are popular among individual investors, have attracted more than $100 billion in net inflows this year, one of the highest amounts on record in EPFR data going back to 2000.
/jlne.ws/3Fw2CiY
The TRADE predictions series 2023: Market structure and regulation, part one; Regulatory reform, payment for order flow, market transparency, UK/EU divergence and of course consolidated tape are the hot topics of 2023, according to our market experts.
Editors - The Trade
Natan Tiefenbrun, president, Cboe Europe: EU capital markets face a reckoning of sorts in 2023, as policymakers crystallise their plans for reforming MiFIR. This review has become a key vehicle for reversing the fortunes of EU markets, which have become less competitive vis-Ã -vis other regions in recent years.
/jlne.ws/3BNV3D7
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Editor
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