| May 09, 2023 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Goldman Sachs Warns of Stock-Market Volatility (VIX) as Quant Traders Pile In
Eva Szalay - Bloomberg
Goldman Sachs is urging investors to cushion themselves from the possibility of increased volatility in the next few months as Wall Street quants dive back into US stocks.
Quant investors have swooped into equities as strong first-quarter earnings and resilient growth in the US has kept a lid on volatility. The Cboe Volatility Index (ticker VIX) has been below the 20 level since late March. This has pushed the exposure of systematic investors to above neutral for the first time since December 2021, according to Deutsche Bank calculations.
/jlne.ws/44H8Vff
Barclays' cull of 21 ETNs puts structure on shaky ground in US
Steve Johnson - Financial Times
Barclays' decision to axe almost half of its exchange traded note range appears to be eroding support for the structure in the US, but analysis reveals ETNs are showing resilience in Europe.
ETNs â born and bred in the US â are unsecured debt obligations issued by a sponsor, typically a bank, which promise to deliver the returns of an underlying investment exposure in return for a fee.
/jlne.ws/41mDVyl
Goldman, Microsoft, Cboe and Others Team Up to Launch Blockchain Network
Anna Irrera - Bloomberg
A group of firms including Goldman Sachs Group Inc, Microsoft Corp, Deloitte and Cboe Global Markets Inc are joining a new blockchain system aimed at linking disparate institutional applications, potentially encouraging broader adoption of distributed ledger technology in financial markets.
/jlne.ws/44KEJA4
**** Here is The Trade's version of this story.~JJL
Schwab Began Hedging Interest-Rate Risk With About $3.9 Billion in Derivatives
Annie Massa - Bloomberg
Charles Schwab Corp. started hedging interest rate-related risk this year, according to a regulatory filing on Monday. The company began hedging using derivatives, valued at $3.9 billion by the end of March, the filing said. After the Federal Reserve embarked on its most aggressive interest rate tightening cycle in decades last year, Westlake, Texas-based Schwab has been caught in the ensuing tumult.
/jlne.ws/3nB4vGh
| | | | | | Exchanges | | | Crypto Options Liquidity Provider OrBit Markets Offers Bitcoin and Gold-Hybrid Derivative
Jocelyn Yang - CoinDesk
Orbit Markets, an institutional liquidity provider of crypto options, is rolling out the first bitcoin and gold hybrid-focused derivative product with execution broker PI Digital. The initiative is among the latest developments among crypto industry firms to provide steady returns during periods of macroeconomic uncertainty. It aims to give investors exposure to gold and digital assets, two assets that hold their value.
/jlne.ws/3HPeFdd
Opportunity Knocks: Industry Collaboration on New Ideas with Cboe Labs
Cboe
Innovation hubs, startup accelerators, corporate venturing - these practices all can pay homage to the older school 'research and development' departments focused on diversifying and iterating on successful products, ventures and initiatives (or pivoting away from unsuccessful endeavors).
Texas Instruments, founded in 1930, didn't get into the pocket calculator game until 1967. Play-Doh was initially marketed as a cleaning product to remove coal soot from walls. Richard Montañez, then a janitor at Frito Lay, invented Flaming Hot Cheetos when he seized upon a broken assembly line that spat out plain Cheetos (sans cheese dust), and then proceeded to add his own spicy spin.
/jlne.ws/42Y5IXh
OCC Announces Three New Board Members, Member Elections at Annual Stockholder Meeting; Michael Blaugrund, Boudewijn Duinstra and Stephen Luparello join Board; Craig Donohue re-elected as Executive Chairman, and additional members elected and appointed OCC
OCC, the world's largest equity derivatives clearing organization, today announced three new members of its Board of Directors: Michael Blaugrund, Chief Operating Officer at the New York Stock Exchange (NYSE); Boudewijn Duinstra, Chief Executive Officer at ABN AMRO Clearing USA; and Stephen Luparello, Former Financial Executive. Additionally, OCC announced the re-election of Craig S. Donohue as Executive Chairman, the re-election of three Member Directors and appointment of four additional Exchange Directors.
/jlne.ws/3NQMKgC
Euronext announces volumes for April 2023
Euronext
Euronext, the leading pan-European market infrastructure, today announced trading volumes for April 2023.
/jlne.ws/41ryDBv
Circular of Shanghai International Energy Exchange on Market Maker Applications for Futures and Options Products
Shanghai Futures Exchange
Shanghai International Energy Exchange has released its Circular on Market Maker Applications for Futures and Options Products as follows: To enhance the role of market makers, improve the functioning of the futures and options markets, and better serve the real economy, the Shanghai International Energy Exchange ("INE") now accepts applications for new market makers for relevant INE futures and options products in accordance with the Market-Making Management Rules of the Shanghai International Energy Exchange.
/jlne.ws/3LQZ6mm
| | | | | | Regulation & Enforcement | | | Calls for short-sale ban grow louder as regional-bank stocks wobble
Chris Matthews - MarketWatch
Regional-bank stocks remained under pressure Monday, helping to reinforce calls for policy makers to take steps that will reassure the public and stabilize investor and depositor confidence in the sector.
Midsized banks that have been hardest amid the stock-market reaction to JPMorgan's takeover of First Republic, including PacWest Bancorp and Western Alliance Bancorp, were posting modest gains, and the KBW Regional Banking index was down more than 1.5% Monday afternoon compared with a 0.1% gain for the S&P 500.
/jlne.ws/42Adx50
Hedge funds' use of barrier options comes under spotlight
Joe Parsons - Risk.net (Subscription)
A criminal case brought against a hedge fund for allegedly manipulating the US dollar/South African rand spot rate to trigger barrier options has shone a light on the different compliance standards that can exist between fast money market participants and dealers.
Glen Point's founder and chief executive, Glenn Phillips, was arrested in September last year after being accused of manipulating the USD/ZAR spot rate in 2017.
/jlne.ws/3pmPgRI
| | | | | | Strategy | | | Bitcoin (BTC) Options Paint Dimmer Picture as Token's 2023 Rebound Loses Steam
Akshay Chinchalkar and Sidhartha Shukla - Bloomberg
Bitcoin's fading bounce is sowing caution about its outlook.
The token has shed about 5% over two days, retreating further from $30,000 and contributing to a $50 billion drop in overall crypto market value. A year-to-date Bitcoin jump that reached 84% in mid-April has cooled to 67%.
/jlne.ws/3Bdb4lA
Cramer ETF vs. Cramer: Shorting CNBC host's stock picks hasn't delivered.
Mark Hulbert - MarketWatch
You can do the opposite of a losing strategy and still lose. That's important to keep in mind when considering whether to take the opposite side of trades recommended by losing advisers.
Given that the vast majority of investment advisers and fund managers lag the market, doing the mirror opposite of what they're doing seems to many a sure path to beating the market.
/jlne.ws/3MaNbBb
VIX Rallies Amid Quiet Day on Wall Street
Jake Scott - Schaeffer's Investment Research
Wall Street is relatively quiet today, as investors continue to await this week's inflation data. In addition, U.S. President Joe Biden and House Speaker Keven McCarthy will meet discuss the debt ceiling later today. At last check, the Dow Jones Industrial Average (DJI), Nasdaq Composite Index (IXIC), and and S&P 500 Index (SPX) are modestly lower, while the Cboe Volatility Index (VIX) is moving higher.
/jlne.ws/42lkZkS
Earnings Negative This Quarter
Cboe (Video)
In Vol411, Tim Biggam @Delta_Desk takes a look at how the #earnings season has played out, the $VIX #futures term structure and activity in OTM #VIX call #options. #trading #markets
/jlne.ws/3nNa6JA
| | | | | | Miscellaneous | | | Banking Stability Is the Illusion That Refuses to Quit
Katherine Greifeld and Ye Xie - Bloomberg
On taking over the distressed First Republic Bank last week, Jamie Dimon, CEO of JPMorgan Chase, said: "No crystal ball is perfect, but yes, I think the banking system is very stable." Well, what else was the boss of America's biggest bank going to say?
The determination to declare that things are under control is widely shared by industry leaders, regulators and policymakers alike. It's understandable. Nobody wants to start a panic. But that's also the root of the problem.
/jlne.ws/3MlPced
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