| January 25, 2024 | | | | | Jeff Bergstrom
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| | | | | | Lead Stories | | | Ether Options Out of Sync With Bullish Sentiment on Street
CoinDesk via Markets Insider
Ether [ETH] could be a market leader in the coming months, observers said early this month, adding the native token of Ethereum's blockchain is qualified to be a core holding in a diversified crypto portfolio. As of now, the options market does not share that sentiment.
According to Amberdata, options tied to ether show bias for price weakness over three months, with a slight bias for strength in the subsequent months.
/jlne.ws/47S3tGR
Bitcoin ETFs Make the Crypto More Like the S&P 500, Analyst Says. Why That's a Bad Thing.
Jack Denton - Barron's
The U.S. launch of Bitcoin exchange-traded funds was a landmark moment for digital assets, but an analyst warns that by becoming more accessible, Bitcoin might also become less attractive.
/jlne.ws/48MMtmK
Why Activist Short Sellers Stir Up Controversy
Lisa Pham - Bloomberg
Activist short sellers such as Daniel Yu of Gotham City Research, Nathan Anderson of Hindenburg Research and Carson Block of Muddy Waters Capital are getting more attention, as they increasingly use social media to push well-timed claims of weak fundamentals, improper accounting or outright fraud at publicly traded companies. These short sellers often present their findings as research, but they're also interested parties that stand to gain if the target company's stock drops. While some accusations by short sellers have held up and prompted regulatory or legal action in recent years, others have proved unfounded and tainted by ulterior motives.
/jlne.ws/499osGm
Credit Traders Are Using Default Swaps to Hedge Their Bets On Interest Rates
Tasos Vossos - Bloomberg
Nomura Asset Management's Richard Hodges began the year by buying credit default swaps, worried that rate cut bets were becoming too aggressive. He reduced the hedge when the cost of protection increased, and now stands ready to dip in again. He's among money managers using CDS indexes to insure against the pain that could be unleashed if central bankers fail to deliver what bond traders have already priced in for the year. For these investors, moderating expectations on rate cuts will boost government bond yields, which would in turn hit spreads on corporate debt. But instead of selling bonds that could be harder to buy back down the line, they're hedging any volatility with liquid CDS contracts.
/jlne.ws/3Sxccsz
Chinese retail investors hit by big losses in 'snowball' derivatives; Wipeout in contracts sold as safe investments is feeding erosion of confidence in domestic stocks, analysts say
Cheng Leng - Financial Times
Chinese retail investors who loaded up on derivatives that rely on calm market conditions have been hit with heavy losses, further undermining confidence in the country's sputtering equity market.So-called snowballs, which promise a stream of sizeable interest payments as long as stock indices trade within a certain range, have grown to an estimated Rmb320bn ($45bn) market in China.
/jlne.ws/3HuWaKq
| | | | | | Regulation & Enforcement | | | EU financial chief says bloc will follow US in cutting settlement times; McGuinness says shortening window to finalise share trades a matter of 'when and how'
Nikou Asgari - Financial Times
Stock markets in the EU will follow the US in shortening the time to settle trades, the bloc's financial services chief said on Thursday, with the key issue now "when and how we move". Mairead McGuinness, EU commissioner of financial services and stability, also opened the door to co-operate with the UK on the sweeping project to modernise financial markets.
/jlne.ws/3OlqR8H
Top Wall Street regulator floats shorter forex trading cycle
Reuters
Global financial regulators should consider shortening the time during which foreign exchange trades are resolved to a single day, U.S. Securities and Exchange Chair Gary Gensler said Thursday. Gensler's remarks to a European Commission roundtable come as the United States prepares to switch to a shorter trading cycle for stocks, with new rules due to take effect in May requiring that stock trades must conclude within a day of when an order is placed. Current requirements allow two days.
/jlne.ws/4bbsuj5
Hedge Fund Demands $100 Million From Its Compliance Team After SEC Probe
Sridhar Natarajan - Bloomberg
Wall Street firms usually grumble in private after getting punished by regulators. Anthony Melchiorre's Chatham Asset Management is dragging its advisers into a public legal battle for $100 million. The $6 billion hedge fund is demanding that Adviser Compliance Associates not only cover Chatham's costs for settling a US probe last year, but also damage to its business. In an unusual lawsuit, Chatham claims the outside consultant, founded by former regulators, failed to prevent trading practices that ran afoul of authorities.
/jlne.ws/3HtwCxr
| | | | | | Moves | | | OCC Appoints Former Optiver Executive as Chief Financial Risk Officer-Elect; Massimo Cutuli will succeed current CFRO Dale Michaels, who is set to retire in March
OCC
OCC, the world's largest equity derivatives clearing organization, today announced that Massimo Cutuli has joined OCC as Chief Financial Risk Officer-Elect and will succeed current CFRO Dale Michaels following his upcoming retirement. "We are very pleased to welcome Massimo to OCC's leadership team," said Andrej Bolkovic, OCC Chief Executive Officer. "This appointment demonstrates our continued ability to attract top talent to further enhance our resiliency as a systemically important financial market utility that provides vital stability and risk management to the U.S. listed options market. Massimo's expertise will help OCC further strengthen our risk management capabilities as we continue to enhance our service to market participants."
/jlne.ws/3HwfV4f
| | | | | | Strategy | | | Hedge Funds Are Playing a Dangerous Game on Japan and China; Everyone loves the Nikkei and hates the Hang Seng. Don't bet on or against this crowded trade.
Shuli Ren - Bloomberg
A macro hedge fund's closure has sent shockwaves across Asia's asset-management world. Singapore-based Asia Genesis Asset Management Pte is shutting down its macro fund after losing 18.8% in the first weeks of January from a wrong-way bet on Japan and China. Chief Investment Officer Chua Soon Hock was bearish on Japanese equities and bullish on Chinese stocks, and he was caught out by a sharp selloff in the Hang Seng Index and an equally impressive rally in the Nikkei 225 Stock Average.
/jlne.ws/3Ht8TNT
Proving That IV Mean Reverts
tastylive (Video)
It's not always easy to take the measure of a market, whether you've been trading for a day or a decade. On this segment we look under the hoodâoptions probabilities, volatility, trading strategies, futures, you name itâso your trading mechanics are built to manage more winners.
/jlne.ws/3tZvUF4
Pfizer
Cboe (Video)
/jlne.ws/3vPJc7H
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