| December 08, 2023 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | GameStop Options Traders Pile Into Hedge Against a 760% Gain
Carly Wanna - Bloomberg
In the runup to GameStop Corporation's earnings report, one of its most-traded options was a contract that will make money if the stock rallies about 760% over the next six weeks.
/jlne.ws/47NGRrV
JPMorgan Expects Stocks Volatility to Climb in 2024: Call is for VIX to reach mid-to-high teens on soft landing
Carly Wanna - Bloomberg
A key gauge of stock market worry will climb in 2024 after tumbling this year to the lowest since before the pandemic struck, and the magnitude depends on the strength of the economy, according to JPMorgan Chase & Co. strategists.
The Cboe Volatility Index will "generally trade higher in 2024 than in 2023, and the extent of the increase depends on the timing and severity of an eventual recession" and potential wider swings that could curb selling of short-term volatility, the bank's Americas equity derivatives strategists, led by Bram Kaplan, wrote in a note Friday.
/jlne.ws/41gJOPc
EU states back moves to shift euro clearing from London to bloc
Huw Jones - Reuters
European Union states agreed on Wednesday that banks and asset managers in the bloc must have an account with a clearing house in the EU to process business currently done in London, though stopped short of specifying minimum volume requirements for now. London's dominance in key parts of euro derivatives clearing has long been a target of EU policymakers and the European Central Bank, who want direct oversight of the sector to maintain financial stability, particularly now that Britain has left the bloc.
/jlne.ws/47CQGsx
Only rates markets are pricing in recession
Alexandra Scaggs - Financial Times
Who's afraid of the bond market?
US rates are flashing stronger recession signals, even as risky markets have gone on a tear. As we flagged Monday, about 130bp of US rate cuts are now priced into interest-rate derivatives markets for next year. That pace of monetary-policy easing looks less like "adjustment cuts" to reflect slower inflation, says Goldman Sachs in a Thursday note, and more like "recession cuts".
/jlne.ws/3TePWW8
| | | | | | Exchanges | | | Marex files for US listing in blow to London stock market: Commodities broker eyes valuation of up to $2.8bn with it having cancelled UK IPO in 2021
Harry Dempsey - Financial Times
UK commodities broker and clearer Marex has filed confidential paperwork to list in the US, snubbing London after pulling a plan two years ago to list on its home stock market.
The group said on Friday it is aiming to go public in New York after submitting the filing to the US Securities and Exchange Commission.
/jlne.ws/46VXJLz
Miami International Holdings Reports November 2023 Trading Results; YTD Options and Equities Volumes Remain at Record Levels
MIAX
Miami International Holdings, Inc. today reported November 2023 trading results for its U.S. exchange subsidiaries - MIAX , MIAX Pearl and MIAX Emerald (together, the MIAX Exchange Group), and Minneapolis Grain Exchange (MGEXâ¢).
/jlne.ws/3uK6GdA
| | | | | | Regulation & Enforcement | | | British financier Sanjay Shah facing charges over $1.7bn fraud extradited to Denmark from UAE; The investigation into Sanjay Shah has been described as one of the "biggest criminal fraud cases in Danish history".
Sky News
A Dubai-based British hedge fund trader accused of orchestrating a $1.7bn (GBP1.34bn) tax fraud has been extradited to Denmark. Financier Sanjay Shah was convicted in May in the United Arab Emirates of masterminding a scheme in which foreign businesses pretended to own shares in Danish companies and claimed tax refunds for which they were not eligible.
/jlne.ws/486REwT
Wall Street Cop Tried to Ban Firm for 60,000% Fee Hike. It Hasn't Been Easy: Finra's underlying power challenged by banned Utah brokerage; Court cases alarm self-regulatory bodies policing industries
Sabrina Willmer - Bloomberg
Wall Street's self-regulator tried to ban Alpine Securities Corp. from the industry after finding that it jacked up fees on customers by 60,000% and violated a cease-and-desist order 35,000 times.
But the Utah-based brokerage firm isn't going quietly.
Alpine not only fought back against the Financial Industry Regulatory Authority's ruling, but won a court injunction keeping the company in business during an appeal that challenges the organization's underlying power.
/jlne.ws/3uRSuj3
| | | | | | Strategy | | | The VIX says stocks are 'reliably in a bull market' heading into 2024. Here's how to read it.
Christine Idzelis - MarketWatch
Lower volatility heading into 2024 is a bullish sign for stocks, as the rebounding U.S. equities market nears record levels reached about two years ago.
The stock market's "fear gauge," the CBOE Volatility Index VIX, often referred to by its ticker VIX, is flashing "a positive sign" for 2024, said Nicholas Colas, co-founder of DataTrek Research, in a phone interview. "We're in a low-volatility regime."
/jlne.ws/3uSVrzN
The VIX says stocks are 'reliably in a bull market' heading into 2024. Here's how to read it.
Christine Idzelis
Lower volatility heading into 2024 is a bullish sign for stocks, as the rebounding U.S. equities market nears record levels reached about two years ago.
The stock market's "fear gauge," the CBOE Volatility Index VIX, often referred to by its ticker VIX, is flashing "a positive sign" for 2024, said Nicholas Colas, co-founder of DataTrek Research, in a phone interview. "We're in a low-volatility regime."
/jlne.ws/3TzgVft
'Too Tricky to Trade': Yen Watchers Brace for Even Wilder Swings
Ruth Carson, Daisuke Sakai, and David Finnerty
Vishnu Varathan was on the seventh floor of his office in Singapore's Asia Square on Thursday when the phones started ringing. The yen was surging and clients wanted to know what was coming next, quickly.
"Price action was very fast," said Varathan, head of economics and strategy at Mizuho Bank Ltd. "It created a huge dollar-yen squeeze that became contagious through the crosses. No doubt there'll be more volatility to come."
/jlne.ws/488mJAj
Ether put-call options ratio is a bullish indicator for the market in 2024, says analyst
Brian McGleenon - The Block
There has been an increasing number of outstanding calls compared to puts in ether options open interest ahead of the end of January expiry date, according to data from the Deribit derivatives exchange. That indicates many investors anticipate the digital asset's price will appreciate in early 2024, an analyst said.
/jlne.ws/46OCYl5
Momentum
Cboe (Video)
In #Vol411, Dan Deming @djd551 provides updates on realized and implied volatility levels, the #VIX #futures roll market, active $VIX #options/notable trades and upcoming events that could influence the vol structure.
/jlne.ws/3ThGEIV
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