| June 06, 2024 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
CQG Executives Discuss AI Integration and Future Plans at FIA Conference
JohnLothianNews.com
At the recent FIA International Futures Industry Conference, CQG executives Pat Kenny and Ryan Moroney shared insights into the company's exploration of AI technology and its future plans during an interview with John Lothian News for the JLN Industry Leader video series sponsored by Wedbush.
Watch the video »
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Symphony CEO Brad Levy Sees Convergence of Traditional and Decentralized Finance
JohnLothianNews.com
Brad Levy, the CEO of Symphony, a leading financial services messaging platform, envisions a future where traditional finance (TradFi) and decentralized finance (DeFi) coexist on a continuum rather than being separate entities.
Watch the video »
| | | | | | Lead Stories | | | GameStop Shares Soar as Keith Gill Schedules YouTube Return; Roaring Kitty handle shows scheduled livestream for June 7; Gill's Reddit page showed a massive stock and option position
Bailey Lipschultz and Carmen Reinicke - Bloomberg
Keith Gill, whose Roaring Kitty online moniker has sent GameStop Corp. shares surging in the past week, sparked another rally in the video-game retailer after a YouTube post said he'd return to the platform Friday for the first time in three years.
GameStop shares surged as much as 41% to $44.41 before paring to about 30% as of 2:34 p.m. in New York, triggering multiple volatility halts. The stock is up more than 40% in two days and has more than doubled since Gill tweeted a cryptic meme May 12.
/jlne.ws/3x62FBO
***** JB: Also see the Reuters story, GameStop surges as 'Roaring Kitty' posts upcoming livestream.
As Nvidia Stock Split Looms, Traders Swarm Short-Term Bets
Gunjan Banerji - The Wall Street Journal
Nvidia mania is sweeping the options market. Nineteen out of 20 of the most actively traded options tied to Nvidia that traded on Wednesday expire by the end of this week, Cboe Global Markets data show. That is a sign traders are placing short-term wagers on the stock's next move. Nvidia's stock split takes place on Friday, and its recent ascent is reminiscent of the frenzy that broke out in Tesla shares around the EV-maker's stock split in 2020. Options activity tied to Nvidia has been through the roof. On Tuesday, around $283 billion worth of Nvidia options traded, compared with $18.7 billion for Apple, according to David Boole at BayCrest Partners.
/jlne.ws/3yZrKPl
*****Nvidia is going to become even bigger after its stock split, if you can believe it. ~JJL
GameStop shares halted twice for volatility as stock surges
Joseph Adinolfi - MarketWatch
News of a livestream scheduled for Friday by the Roaring Kitty YouTube channel -- what would be its first in three years -- has sent GameStop's stock higher with renewed vigor on Thursday.
/jlne.ws/3Kwc6gX
Timing for US ether ETF launches depends on how fast issuers can move, SEC chair says
Hannah Lang and Chris Prentice - Reuters
The timing for when exchange-traded funds (ETFs) tied to the cryptocurrency ether can begin trading depends largely on how quickly issuers respond to the U.S. Securities and Exchange Commission's queries, Chair Gary Gensler said on Wednesday. The SEC last month approved applications from Nasdaq, CBOE and NYSE to list spot ether ETFs. It was a surprise win for the cryptocurrency industry which had expected the SEC to reject the filings after discouraging meetings with the regulator. The SEC still has to approve the ETF issuers' registration statements detailing investor disclosures before they can start trading. That process usually involves a lot of back and forth between the ETF issuers and SEC officials.
/jlne.ws/4aKQPLi
2x ether ETF debuts in US before plain vanilla spot rivals; Leveraged and inverse products from Volatility Shares and ProShares get green light, while physically backed funds wait
Will Schmitt - Financial Times
US exchange traded fund investors can buy a fund offering two times the daily return of ether, but are still waiting for final approval of an ETF that actually invests in the world's second-largest cryptocurrency. Volatility Shares launched the 2x Ether ETF (ETHU) on June 4, while ProShares, one of the largest providers of leveraged and inverse ETFs, said it expected ETFs offering twice the daily return of ether (ETHT) and twice the inverse daily ether return (ETHD) to list on the New York Stock Exchange on June 7.
/jlne.ws/3RcBjkk
China's Dwindling 'Snowball' Derivatives Deliver a Big Payout; Total of 64 products reach knock-out levels in May, data show; New offerings are drying up after regulators tighten scrutiny
Bloomberg News
More investors in the Chinese index-linked derivatives known as snowballs are cashing in, reaping gains just as regulators are trying to rein in the popular but potentially risky products. Gains in the underlying indexes triggered payouts for 64 snowball products in May, more than double the total in the first four months of the year, according to data compiled by Galaxy Technologies. That's what's known as a knock-out - if the underlying index rises above a predetermined range, many around 103% of the initial level, the investor gets his investment back plus a coupon payment, and the contract terminates.
/jlne.ws/4bPW5P2
| | | | | | Exchanges | | | Cboe Global Markets Reports Trading Volume for May 2024
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today reported May monthly trading volume statistics across its global business lines. The data sheet "Cboe Global Markets Monthly Volume & RPC/Net Revenue Capture Report" contains an overview of certain May trading statistics and market share by business segment, volume in select index products, and RPC/net capture, which is reported on a one-month lag, across business lines.
/jlne.ws/4bL1TsZ
May 2024 figures at Eurex
Eurex
Eurex, Europe's leading derivatives exchange, reports a 13 percent increase in traded contracts for May compared to the previous year, up from 142.5 million to 161.3 million contracts. Interest rate derivatives went up by 41 percent to 78.3 million contracts. Equity derivatives grew by 15 percent compared to May 2023, while index derivatives decreased 12 percent to 54.5 million traded contracts.
/jlne.ws/45eG16N
| | | | | | Regulation & Enforcement | | | Keith Gill's GameStop Trades Pose Conundrum for Market Cops; Lawyers say it is unlikely regulators could bring a case against the meme-stock influencer based on the facts currently known
Alexander Osipovich - The Wall Street Journal
Keith Gill placed a big bet on GameStop, then single-handedly moved the stock higher by returning to social media. Was that market manipulation? Lawyers say it is unlikely that the Securities and Exchange Commission could bring a case against Gill, the meme-stock influencer known as Roaring Kitty, based on the facts currently known about his trading. For the SEC to sue Gill for manipulation, it would need evidence that he deceived the market in some fashion. But there is nothing clearly deceptive about Gill's tweeting of cryptic memes or revealing the size of his GameStop position. It has reached a whopping $260 million in shares and options contracts, according to a post on his Reddit account on Monday afternoon.
/jlne.ws/4c7GI4h
SEC Hedge Fund Fee Disclosure Rule Struck Down by US Court
Madlin Mekelburg and Rachel Graf - Bloomberg
A federal appeals court struck down the US Securities and Exchange Commission's rules requiring hedge funds and private equity firms to detail quarterly fees and expenses to investors - a significant setback in the regulator's clampdown on the private-funds industry. A three-judge panel of the US 5th Circuit Court of Appeals in New Orleans on Wednesday sided with industry groups, who argued that the agency overstepped its authority and that rules weren't necessary for the "highly sophisticated" investors that pour money into private funds. Writing for the panel, Judge Kurt D. Engelhardt said the SEC "exceeded its statutory authority" by adopting the rule.
/jlne.ws/3yTe34M
Gensler Says SEC in Talks on Additional Treasury Clearinghouses
Katherine Doherty and Liz Capo McCormick - Bloomberg
The US Securities and Exchange Commission is in talks with several firms seeking to become central clearinghouses for US Treasuries and derivatives trading under a new rule designed to fortify the world's largest debt market.
"There's some dialogue between potential applicants but there's not a formal filing," SEC Chair Gary Gensler told reporters Wednesday on the sidelines of a Treasury market conference in New York. "It's a process."
/jlne.ws/3Vg2w6S
| | | | | | Strategy | | | Nvidia options plays ahead of its stock split
Madison Mills and Seana Smith - Yahoo Finance
Nvidia (NVDA) shares have slipped from the record highs it reached on Wednesday, when the company's market cap briefly surpassing $3 trillion. But there's something else Nvidia has in store for investors â a 10-for-1 stock split that is set to occur Friday after the market close.
Option Research & Technology Services Principal Matt Amberson notes that the price of Nvidia's options are "extraordinarily high" given the high stock price, so the split will make the options "a lot easier" to trade.
/jlne.ws/3KymJ2X
Nvidia Split
Cboe (Video)
Watch #Vol411 with Scott Bauer for market updates ahead of the $NVDA stock split tomorrow.
/jlne.ws/4cc3k3p
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