| July 16, 2024 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
My Skepticism Persists Despite BlackRock's Larry Fink Reversing Stance, Declaring Bitcoin a Legitimate Financial Instrument
JohnLothianNews.com
The CoinDesk story that reported that BlackRock's Larry Fink has declared that bitcoin is a legitimate financial instrument struck a sour note with me. It was just seven years ago, before BlackRock's Bitcoin ETF hit $21 billion in equity since its launch in January of this year, that Fink was not a bitcoin fan. BlackRock may have $10.6 trillion in assets under management, which gives Fink headlines and gravitas, but his declaration is still just an opinion.
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OCC's Tech Overhaul Poised to Reshape Options Trading
JohnLothianNews.com
In the heart of Asheville, NC, in a quiet corner of the bustling Options Industry Conference, Mike Hansen, the chief clearing and settlement services officer of the Options Clearing Corporation (OCC), sat down for an interview with John Lothian News for the JLN Industry Leader video series sponsored by the OCC. His demeanor was calm, but his words carried the weight of an industry on the cusp of significant change.
Watch the video »
| | | | | | Lead Stories | | | Crypto Options Traders Can Soon Target Bets on US Presidential Results; Deribit exchange to provide the options for Bitcoin and Ether; Contracts will expire three days after US presidential vote
Benjamin Taubman and Muyao Shen - Bloomberg
Crypto derivatives exchange Deribit is providing Bitcoin and Ether options that enable investors to customize bets for right after the conclusion of the upcoming US presidential election.
The exchange is offering contracts that expire on Nov. 8, three days after US citizens cast their presidential ballots. The options will be available July 18.
/jlne.ws/4f3Xu6G
BlackRock Says Active ETFs Poised to Hit $4 Trillion by 2030; Currently, there's $920 billion globally in such funds; Investors demand such strategies amid higher volatility
Vildana Hajric - Bloomberg
BlackRock Inc. is optimistic about the growth of actively managed ETFs after investors across the globe poured more than $160 billion into such strategies this year.
It projects that global assets in active exchange-traded funds could reach $4 trillion by 2030 from the current $920 billion. Regulatory changes in the US, the growth of ready-made portfolios for advisers, and the rise of self-directed investors could all contribute to the trend, the firm says in a new report titled Decoding active ETFs.
/jlne.ws/4cYkHoM
BlackRock's Larry Fink: Bitcoin Is 'Legitimate Financial Instrument'
Helene Braun - CoinDesk
BlackRock (BLK) CEO Larry Fink reiterated his belief that Bitcoin {{BTC}} is an asset that everybody should consider holding as part of their portfolio. "My opinion five years ago was wrong," Fink said in an interview with CNBC. "I believe bitcoin is a legitimate financial instrument," Fink's appearance Monday morning came following BlackRock's second quarter earnings results, which topped analyst estimates as assets under management increased 13% year-over-year to $10.6 trillion.
/jlne.ws/4cJ9etD
****Seven years ago, in 2017, Larry Fink, the CEO of BlackRock, held a very negative view of Bitcoin. He referred to Bitcoin as "an index of money laundering." This stance reflected his skepticism on cryptocurrencies at that time, as he viewed them primarily as tools for illicit activities rather than legitimate financial instruments.
Ether Hedging Activity Picks Up as U.S. ETF Debut Nears
CoinDesk via Business Insider
The impending debut of U.S.-based exchange-traded funds (ETF) tied to ether's {{ETH}} spot price has investors scrambling to the options market to hedge or protect existing market positions from price swings.
Implied volatility (IV), or options-derived market expectations for price turbulence over a specific period, has ticked higher across timeframes, according to data sources Deribit and Kaiko. That's a sign of increased demand for options or derivatives offering protection against price swings. A call protects against price rallies, while a put offers insurance against price slides.
/jlne.ws/3WsAp6w
Pity Hedge Funds That Lost in Electricity Chaos - No, Really; A spike in prices cost traders money. But have some sympathy; the next losers could be you and me.
Javier Blas - Bloomberg
When European electricity markets recently went haywire for 24 hours, a group of high-flying hedge funds lost money. Given their size, the amounts involved were small, though still enough to cause howls of distress. Should we have some sympathy for their billionaire owners? Before you answer "no" - or perhaps "hell no" - let me describe what happened, and why the hedge funds are right to feel aggrieved. Early on June 25, EPEX Spot, a key exchange handling electricity trading, released what it called a "feature upgrade" to its main software. By 10:08 a.m. Paris time, the exchange could no longer communicate with its customers even after rushing to reverse the upgrade, according to a preliminary report. The failure created a cascade that, at its most extreme, pushed German short-term power prices 3,000% above typical levels, while French prices plunged to nearly zero. For the market as a whole, the total losses probably are somewhere around EUR300 million ($327 million) in a single day.
/jlne.ws/3Ln6Ug1
What is ETF Connect? How does it help global investors tap China's stock market?
South China Morning Post
China is further opening up its US$8.4 trillion stock market by offering more options to global investors - 85 new exchange-traded funds (ETFs) tracking mainland equities are set to become available through the cross-border trading channel for offshore funds next week. ETFs, which are funds that pool together a basket of securities and aim to offer returns that mirror the underlying market, are becoming increasingly popular in Asia. These transparent, low-cost, and diversified investment products are especially favoured by retail investors, with mainland China being one of the fastest-growing markets in the region.
/jlne.ws/3zJU7S8
Spot ether ETFs likely to begin trading July 23, industry sources say
Suzanne McGee and Hannah Lang - Reuters
The U.S. Securities and Exchange Commission has given preliminary approval to at least three of the eight asset managers hoping to launch exchange-traded funds tied to the spot price of ether to begin trading next Tuesday, three industry sources said.
The approval hinges on applicants submitting final offering documents to regulators before the end of this week, the sources said. One said that all eight are expected to launch simultaneously.
/jlne.ws/4bOjCPz
'We Are Back': Equity Trading Crushes Estimates for Big US Banks; Big banks say client bets in rising US markets drive windfall; 'You see now the potential for that to broaden,' Ted Pick says
Katherine Doherty - Bloomberg
Equities traders across Wall Street's biggest banks pulled off a clean sweep of higher-than-expected quarterly gains - by a startling margin.
The 18% jump in combined revenue from helping clients bet on stocks was more than triple the increase analysts estimated. On conference calls, industry leaders pointed to a combination of swelling balances and a flurry of dealings, particularly in derivatives, led by their largest customers.
/jlne.ws/4cJSthX
| | | | | | Exchanges | | | CME Group and CF Benchmarks to Launch Two New Cryptocurrency Reference Rates and Real-Time Indices on July 29
CME Group
CME Group, the world's leading derivatives marketplace, and CF Benchmarks, the leading provider of cryptocurrency benchmark indices, today announced plans to launch two new cryptocurrency reference rates and real-time indices for XRP and Internet Computer (ICP), which will be calculated and published daily by CF Benchmarks, beginning July 29.
These reference rates and indices are not tradable futures products.
/jlne.ws/4bAUcER
The Derivatives Service Bureau Publishes the Industry Consultation Final Report for OTC Derivatives; Ongoing development of the service in the months ahead
Derivatives Service Bureau via Mondovisione
The Derivatives Service Bureau (DSB), the golden global source of reference data for Over-the-Counter (OTC) derivatives, has published the Industry Consultation Final Report today relating to the OTC International Securities Identification Number (ISIN), the Classification Financial Instrument code (CFI) and the UPI service provision. The industry consultation process complements the ongoing work of the DSB's industry representation groups (IRG) and enables stakeholders and market participants to contribute towards the evolution of the DSB service by providing feedback on specific topics. For the first time, this year's consultation includes the new UPI Service, which is particularly pertinent as G20 regulatory reporting mandates take effect throughout 2024 and 2025.
/jlne.ws/3WmnfI6
ESG Index Derivatives Development Update Q2/2024
Eurex
The Eurex ESG Index Derivatives segment continued its strong development in Q2/2024, with a record high in June for the whole segment.
/jlne.ws/468SxVS
New Index Options Strike Series
HKEx
Hong Kong Futures Exchange announces the addition of the following strike series effective 17 July 2024.
/jlne.ws/3WyV4G5
| | | | | | Technology | | | CQG Offers Clients Access to Newly Launched Abaxx Exchange
CQG
CQG, a leading global provider of high-performance technology solutions for market makers, traders, brokers, commercial hedgers and exchanges, announced that it has partnered with Abaxx Exchange to provide its clients with access to trade new benchmark futures on energy, metals and other energy transition-focused commodities. Abaxx, the new global commodity futures exchange and clearinghouse based in Singapore, launched on June 28 with five physically deliverable futures contracts in liquified natural gas (LNG) and carbon markets, soon to be followed by solutions for battery metals. The exchange's offering is designed to help market participants execute their energy transition strategies, with improved price discovery and enhanced risk management tools.
/jlne.ws/3W76eQJ
| | | | | | Strategy | | | Seeing the US Markets through VIX glasses: volatility insights for the Smart Investor
Koen Hoorelbeke - Saxo Bank
Summary: This article analyzes the VIX and related volatility indicators to provide insights into the current state and future scenarios of the US markets, emphasizing the importance of diversification and risk management for investors. Key takeaways include the moderate current volatility with potential increases due to upcoming economic and political events.
/jlne.ws/3LsOJFE
S&P 500
Cboe (Video)
In #Vol411, Tim Biggam @delta_desk shares updates on the #VIX futures terms structure, 15-day straddle and other market news.
/jlne.ws/3zDRyRu
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