| October 09, 2023 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | Three Takeaways from FIA Expo 2023
Derek Haworth - BornTec blog
FIA Expo is a high point of the year for the futures and derivatives industry. It doesn't have the glitz and glamor of FIA Boca, held in March each year, or the international appeal of IDX, presented in London in June, or the Asia Derivatives Conference, hosted in Singapore in November, but it is the largest gathering of the bunch and it delivers a real "meat and potatoes" look at the industry. FIA has staged the event as late as November in years past but they moved it up to the first week of October, for 2023 and, in the process, gave all of the attendees a taste of fine Midwestern Fall weather, a condition that is sure to devolve into wind, rain and cold all too soon. BornTec was in attendance at the trade show and events at FIA Expo and has a few observations and takeaways to share:
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***** This has a Chuck Mackie-like feel to it.~JJL
| | | | | | Lead Stories | | | Deribit to Offer Options on SOL, XRP, MATIC and Expand in EU
Suvashree Ghosh - Bloomberg
The largest cryptocurrency exchange for options, Deribit, is pushing ahead with plans to provide customers with contracts on more coins despite a slump in volatility in digital assets.
Deribit will offer options on Solana's SOL, the XRP token linked to Ripple Labs and Polygon's MATIC starting January, Chief Commercial Officer Luuk Strijers said in an interview, adding a lack of volatility "won't defer our plans." The firm will also apply for a brokerage license in the European Union, he said.
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Oil Surges as Israel Conflict Reignites Middle East Volatility
Julia Fanzeres and Alex Longley - Bloomberg
Oil prices surged after a shock attack on Israel by Hamas brought renewed instability to the Middle East.
More than 1,400 people have died since the fighting between Israel and militant group Hamas broke out over the weekend, in a conflict that has potential repercussions across the wider region. US crude futures settled above $86 a barrel, at one point rallying 5.4%.
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Israel's central bank to sell $30bn of foreign reserves to support shekel
Mary McDougall and Hudson Lockett - Financial Times
The Bank of Israel said on Monday it planned to sell up to $30bn of dollar reserves to support the shekel after the market fallout from Hamas's attacks on the country pushed the currency to a seven-year low.
The shekel slumped to a seven-year low against the dollar on Monday morning and continued to fall despite the central bank's announcement to trade 2.7 per cent lower on the day at Shk3.9485, its weakest level since 2016.
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Wall Street's Fear Gauge Is Retreating
Emily Dattilo - Barron's
Investor fears are settling down after rising earlier on worries over the attack on Israel, according to one measure that illustrates how investors are feeling about the market.
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Hedge funds, family offices among those turning to Goldman Sachs ETF Accelerator
Christine Idzelis - MarketWatch
Goldman Sachs Group's recently created business designed to help firms quickly launch exchange-traded funds has more than just traditional asset managers as clients.
"It's really been surprising," said Lisa Mantil, global head of the Goldman Sachs ETF Accelerator, in a phone interview. She said that insurance companies, private banks, family offices, hedge funds and registered investment advisers, or RIAs, are among the clients of Goldman's ETF Accelerator, which was introduced in November.
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| | | | | | Exchanges | | | MIAX Exchange Group - Options & Equities Markets - Final Reminder: Reg SCI / SIFMA BCP Test On Saturday, October 14, 2023
MondoVisione
As previously announced in the April 11, 2003, September 14, 2023 and September 26, 2023 Alerts, the MIAX Exchange Group will be participating in the 2023 SIFMA BCP Testing on Saturday, October 14, 2023. All Members that are required to test with MIAX Options, MIAX Pearl Options, MIAX Emerald Options and/or MIAX Pearl Equities Exchanges in accordance with Regulation Systems Compliance and Integrity (Regulation SCI) were notified on April 4th and April 5th, 2023. However, all Members are encouraged to test.
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September 2023 SEF trading activity
FIA
Trading volume on swap execution facilities reached $1.12 trillion in average notional value per day during September 2023. This was up 17.2% from the previous month and up 35.9% from the same month of the previous year. Compared to August 2023, trading was up in every sector, with FX trading volume hitting a record high.
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TAIFEX News and Events
TAIFEX
TAIFEX Reports Strong Q3 Performance. Taiwan Futures Exchange (TAIFEX) reported volume growth in the third quarter. The ADV has increased 20.43% over the previous quarter and reached 1,527,719 contracts per day. Notably, the growth was attributed to volume increase of Single Stock Futures (STF), with its ADV growing 46.71% to 284,620 contracts. Other flagship products, including TAIEX Options (TXO), Mini-TAIEX Futures (MTX), and TAIEX Futures (TX), also demonstrated steady growth, registering increases of 15.21% to 809,415 contracts, 19.14% to 267,372 contracts, and 14.54% to 147,790 contracts, respectively.
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CME Group Reports Sixth Consecutive Record Quarter for Aluminum Futures Volume
CME Group
September average daily volume also reached a record 6,118 contracts. CME Group, the world's leading derivatives marketplace, today announced that participation in its global Aluminum futures contract continues to accelerate, recently achieving record volume for the sixth consecutive quarter and the month of September. Average daily volume (ADV) in the third quarter was a record 4,656 contracts, up 98% from last year, while ADV in September was a record 6,118 contracts, up 132% from last year. Average daily open interest (ADOI) in Q3 also grew 267% from last year.
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| | | | | | Regulation & Enforcement | | | Experts focus on traceability in commodity markets
Katie Raymond - FIA
From emerging current trends including the rise in US commodities, biofuel, and carbon markets, to future trends focused on tokenization and the structural impact of traceability of goods globally, experts at FIA's Expo conference plunged into the latest issues in global commodities markets,
Panelists discussed grain in particular, which experienced an extreme supply shock after Russia's invasion of Ukraine. However, Tim Andriesen, managing director of North American agricultural sales at Marex, reminded the audience that the last time grain markets saw this sort of shock was also in Ukraine, with the Chernobyl nuclear event that also spurred a significant increase in volatility. This time the global response from the agricultural community was much swifter, he said.
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| | | | | | Moves | | | R.J. O'Brien Promotes Matt Heidkamp to COO, U.S., Gemma Lloyd to COO, EMEA
R.J. O'Brien & Associates
Chicago-based R.J. O'Brien & Associates (RJO), the oldest independent futures brokerage and clearing firm in the United States, today announced the promotions of Matt Heidkamp to Executive Director, Chief Operating Officer (COO), U.S. for RJO and Gemma Lloyd to Chief Operating Officer, EMEA for the firm's UK-based affiliate R.J. O'Brien Limited (RJO Limited). Both executives bring decades of relevant experience to the roles - with Heidkamp spending nearly his entire 29-year career at RJO in trading and operations and Lloyd joining earlier this year with more than 25 years of experience in client service and sales management roles in the listed derivatives space with brokerage firms, investment banks and asset managers.
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| | | | | | Strategy | | | Are Options Signaling an Impending Spike in Volatility?
Erik Norland - CME Group (Cideo)
Options trends over the past 30 years show that Fed's tightening of monetary policy tends to lead to a spike in market volatility.
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Today's Active Options
Cboe (Video)
In #Vol411, Joel Hawthorne @louiswinthrop covers today's most active #options in the $VIX and $SPX, earnings and economic data to look out for this week and more.
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| | | | | | Education | | | Exchange Traded Options Market Making, Explained - Global X ETFs
Rohan Reddy and Chandler Nichols - Global X
The following is Part 1 in a 3-part blog series on the market making landscape for exchange traded options. This part elaborates on the role of liquidity providers when it comes to making a market in listed options. Part 2 will discuss additional market maker option risk hedging needs while Part 3 will discuss potential option market impacts on market volatility and considerations when analyzing the growth in ETF usage of such contract types.
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| | | | | | Miscellaneous | | | How to beat Sam Bankman-Fried at trading when you've already lost
Louis Ashworth - Financial Times
Michael Lewis Week was last week, but inexorability lasts as long as it needs.
Amid the reams of discourse around Lewis's new book Going Infinite â a sympathetic look at FTX's fallen founder Sam Bankman-Fried â Alphaville was particularly interested in one of the book's few bits of detailed trading discussion: the description of a bet SBF made while an intern at Jane Street.
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