| August 01, 2022 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Ether Flips Bitcoin in Options Market for the First Time
Omkar Godbole - CoinDesk
Ether (ETH), the native token of Ethereum's blockchain, has overtaken industry leader bitcoin (BTC) in the options market for the first time on record.
As of writing, the cumulative dollar value of ether options contracts opens on dominant exchange Deribit was $5.7 billion, or 32% higher, than $4.3 billion locked in open bitcoin options trades. Deribit is the world's largest crypto-options exchange, accounting for more than 90% of the global total trading volume and open interest.
/jlne.ws/3BxFsbz
S&P 500 Index: Surging Stock Market Heading Into Riskiest Months of the Year
Jess Menton - Bloomberg
Before investors get too excited about the July surge in stocks, here's something to keep in mind: August and September are historically the two worst months for the S&P 500 Index.
Despite a 12.6% advance from a low of 3,666.77 on June 16, the S&P 500 could be facing an ugly stretch just after it had its best month since November 2020. Portfolio managers are debating whether stocks can maintain their recent gains with the Federal Reserve still on track to raise interest rates and the economy sending worrying recession signals.
/jlne.ws/3QfZ4oV
US Earnings Season Better Than Feared, Goldman Sachs Says
Sagarika Jaisinghani - Bloomberg
With the busiest week of the second-quarter earnings season over, investors are relieved that results are holding up better than feared, according to Goldman Sachs Group Inc. strategists.
Of the 56% of S&P 500 companies that have reported earnings so far, more than half have beaten analyst estimates -- above the long-term average of 47%, strategists led by David J. Kostin wrote in a note dated July 29. That, combined with "dovish messaging" from the Federal Reserve, has provided a boost to equities, they said.
/jlne.ws/3OVk4zT
Funds shave bullish CBOT bets early on in weather-driven rally
Karen Braun - Reuters
Chicago grain and oilseed futures rallied in historic fashion last week as hot and dry August forecasts threaten to curb U.S. crop potential, but speculators had not materially changed their easing bullish views a couple days into the price spike.
Like many others in recent months, the week ended July 26 featured "round trip" price action, where CBOT corn and soybean futures fell sharply then rose again within the period. That muted overall speculative activity for the week, which had been well reflected in trade estimates.
/jlne.ws/3ByWsOH
Hedge funds bullish on U.S. diesel as inventories dwindle
John Kemp - Reuters
Portfolio managers were heavy buyers of U.S. distillates last week, reflecting the continued shortage of diesel and heating oil despite signs of an economic slowdown.
Hedge funds and other money managers purchased the equivalent of 4 million barrels in the six most important petroleum futures and options contracts in the week to July 26
/jlne.ws/3zLg155
Cboe FX Markets Posts Monthly Dip in Trading, YoY Demand Jumps 11%
Arnab Shome - Finance Magnates
Cboe FX Markets, an institutional venue for spot foreign exchange trading, reported a sharp monthly dip in trading volumes for July, seemingly with the effects of the summer holidays on the markets.
/jlne.ws/3ShN1ZX
Following A Strong July Can Bulls Keep The Momentum?
JJ Kinahan - Forbes
Markets ended July on a solid note, giving investors some hope at a time when many are predicting doom and gloom. For the month, the Nasdaq was up over 12% while the S&P 500 notched a 9% gain. Overall, markets remain down on the year with the Nasdaq being the worst performer, down 21%. However, some better than expected earnings reports and forecasts may be just what was needed.
/jlne.ws/3oNdFwk
| | | | | | Exchanges | | | Miami International Holdings Announces that Webull will Begin Offering Clients Access to SPIKES Options
MIAX
Miami International Holdings, Inc. (MIH), owner of Miami International Securities Exchange, LLC (MIAX ), MIAX PEARL, LLC (MIAX Pearl ), MIAX Emerald, LLC (MIAX Emerald ), Minneapolis Grain Exchange, LLC (MGEXTM), and Bermuda Stock Exchange (BSXTM), announced today that Webull Financial LLC (Webull) is now offering SPIKES Options on its trading platform. SPIKES Options will be available to customers who are approved to trade options on Webull's trading platform.
/bit.ly/3PRvxC4
CME Notches Record Crypto Derivative Trades in Q2; The derivatives exchange reports a record average daily open interest across crypto products, despite a volatile market
Ben Strack - Blockworks
CME Group's crypto derivatives posted record open interest and higher than average daily volumes during the second quarter â even as the sell-off in digital assets markets intensified. Average daily open interest across its crypto products was 106,000 contracts, an all-time quarterly high, according to a report published by the derivatives exchange Wednesday. Average daily volume was about 57,000 contracts â the second-highest quarterly total.
/jlne.ws/3biJiL9
Euronext reports 'solid' Q2 results; The pan-European exchange saw a 14% increase in overall revenue and income in the second quarter of this year, with trading revenue jumping on the back of high FX and fixed income activity.
Wesley Bray - The Trade
Euronext, Europe's largest exchange, has reported a 'solid quarter' driven by the sustained dynamism of non-volume activities and of trading operations. The exchange reported a 14% increase in revenue and income in Q2 of this year, compared to the same period last year, which reached EUR374.7 million - driven by the growth of non-volume related business and trading activities.
/jlne.ws/3cPtOyl
Trading Overview in July 2022
JPX
Japan Exchange Group released Trading Overview in July 2022.
Cash Equity Market. In July 2022, the daily average trading value for the Prime Market (domestic common stocks) was JPY 2.9986 trillion. The daily average trading value for the ETF market was JPY300.5 billion.
Derivatives Market. In July 2022, total derivatives trading volume was 29,107,492 contracts. In July 2022, total derivatives trading value reached JPY 196 trillion. In July 2022, trading volume for the night session and the ratio of the night session were 11,186,931 contracts and 38.4%. In July 2022, total trading volume for DJIA Futures was 67,610 contracts, the third highest record.
/bit.ly/3vvmfn4
MIAX Options Exchange - August 1 2022, SPIKES Options Fee Changes
MIAX
Fee Change Alert
Effective August 1, 2022, MIAX Options will change SPIKES Options fees to a) introduce a new Routing EEM Rebate Program, b) bifurcate and adjust Simple and Complex fees, and c) adjust PRIME and cPRIME fees
/bit.ly/3OTE5YF
Market for Underlying Security Used for Openings on MIAX Options, MIAX Pearl Options and MIAX Emerald Options for Symbol SLGN Effective Monday, August 1, 2022
MIAX
Silgan Holdings Inc ("SLGN") has transferred primary listing from the NASDAQ Global Select Market to the New York Stock Exchange ("NYSE") effective Monday, August 1, 2022. MIAX Options, MIAX Pearl Options and MIAX Emerald Options will use NYSE as the "market for the underlying security" for the purpose of Openings on the Exchange.
/bit.ly/3OTE5YF
| | | | | | Regulation & Enforcement | | | Short Seller Carson Block Sued Over $14 Million Whistleblower Award; Lawsuit highlights the often lengthy and complex road to winning SEC whistleblower awards
Mengqi Sun - WSJ
A private investor is seeking $7 million in a lawsuit against short seller Carson Block and his equity research firm Muddy Waters LLC in a dispute over an approximately $14 million whistleblower award by the Securities and Exchange Commission. Kevin Barnes said he worked with Mr. Block on a report on Focus Media Holding Ltd. that formed the basis of a SEC action, and that the two had agreed to share proceeds from legal or regulatory actions stemming from their research on the China-based advertising company. Mr. Block is known for investigating Chinese companies.
/jlne.ws/3cQW3wA
FIA responds to ESMA consultations on CCP Resolution Regime
FIA
FIA, along with the International Swaps and Derivatives Association, has responded to three of the four consultations published by the European Securities and Markets Authority on the CCP Resolution Regime. The responses cover two mandated guidelines on the CCP assessment of resolvability and cooperation arrangement between member states and third-country authorities, and non-mandated guidelines on the summary of resolution plans. The associations did not respond to a consultation on the standard written arrangement template for the resolution college.
/jlne.ws/3JlyPLc
China Derivatives Law to Open Market by Lowering Costs for Investors
Bloomberg
A regulatory breakthrough is expected to slash costs for investors trading over-the-counter derivatives in China, the latest step in opening up the nation's capital markets to foreign investors.
A Chinese law that takes effect Monday enforces a mechanism used around the world for determining payouts if a derivative counterparty defaults, bringing the standards there in line with those used in other major markets. This recognition of so-called close-out netting is seen lowering the cost of trading by reducing the funds that would need to be set aside to protect against credit risks.
/jlne.ws/3SaUf1I
Flash Friday: Retail Options Trading Draws Regulatory Scrutiny
Anna Lyudvig - Traders Magazine
In March 2005, the options markets were the fastest growing segment of the retail community. At that time, Matt Andresen, President of Citadel Execution Services, told Traders Magazine that the continuing growth in trading volume will attract regulatory scrutiny.
/jlne.ws/3By6KPc
| | | | | | Technology | | | India, Singapore Exchanges Kick Off Derivatives Trading Link; NSE IFSC-SGX Connect was formally launched on Friday; Start of the link marks an end to quarrel that erupted in 2018
Stephen Stapczynski - Bloomberg
A cross-border derivatives trading link between the Singapore Exchange Ltd. and the National Stock Exchange of India Ltd. has started, ending years of delays after they ended a bitter feud that left global investors in a lurch. The NSE IFSC-SGX Connect was formally launched by Indian Prime Minister Narendra Modi on Friday, and is ready to clear Nifty equity derivatives for global institutions, according to a statement from the Singapore Exchange dated July 29. The link, similar to the Hong Kong-Shanghai connect, allows global investors to trade stocks listed on the local Indian bourse instead of an earlier arrangement that allowed such trades via the Singapore exchange only.
/bloom.bg/3OR8wxA
| | | | | | Strategy | | | Pro traders may use this 'risk averse' Ethereum options strategy to play the Merge
Marcel Pechman - CoinTelegraph
Ether (ETH) is reaching a make-it or break-it point as the network moves away from proof-of-work (PoW) mining. Unfortunately, many novice traders tend to miss the mark when creating strategies to maximize gains on potential positive developments.
For example, buying ETH derivatives contracts is a cheap and easy mechanism to maximize gains. The perpetual futures are often used to leverage positions, and one can easily increase profits five-fold.
/jlne.ws/3vvkQwK
| | | | | | Miscellaneous | | | Are Passive ETFs Better Than Active Funds? Where to Put Money as Markets Slump
Kristine Owram and Claire Ballentine - Bloomberg
Elon Musk thinks passive investing has "gone too far." Cathie Wood called it a "massive misallocation of capital."
The long-running active versus passive debate has become even more heated than usual during the recent stock market turmoil.
/jlne.ws/3PSox80
Hedge Funds That Charge Most Tend to Perform Best, Barclays Study Shows
Hema Parmar - Bloomberg
Hedge funds have fresh ammunition to push back against detractors who have long criticized their hefty fees.
The firms that charge the most -- often the industry's biggest names -- tend to produce better returns over time than less expensive competitors, according to a recent study by Barclays Plc's Capital Solutions group, which examined about 290 hedge funds, their fees and the ultimate payoff.
/jlne.ws/3vU1odx
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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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| | | Jeff Bergstrom
Editor
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