| March 30, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | Cboe Global Markets announced on LinkedIn that "Throughout the month of April, Cboe FX will be donating a portion of its trading revenues to UNICEF to support the relief efforts of the recent earthquake that affected Turkey and Syria."
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Gain Small-Cap Exposure with Options on the Russell 2000 Index
Learn why small-cap indexes like the Russell 2000 have historically outperformed large-cap counterparts, and how an options strategy can help you manage your risk while expressing an opinion on the index.
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Euronext Chairman and CEO Stephane Boujnah Tells Euronext Success Story to JLN
JohnLothianNews.com
Stephane Boujnah was interviewed by John Lothian News at the FIA International Futures Conference in Boca Raton, FL about Euronext and its success. JLN asked him what were the most significant reasons for Euronext's success. JLN asked him how he juggles all the cultures of Euronext with offices around the world. And JLN asked Boujnah how 2023 was shaping up for Euronext.
Watch the video »
| | | | | | Lead Stories | | | 'It says I owe $179,000': Options traders hit with massive margin calls as winning bets against failing banks are left in limbo for weeks
Joseph Adinolfi - MarketWatch
Thousands of retail option traders who made prescient bets against shares of Signature Bank and SVB Financial Group, the Silicon Valley Bank holding company, were relieved on Tuesday when shares of both failed banks resumed trading on over-the-counter markets after a roughly two-week trading halt.
It marked the end of what an academic has described as one of the more interesting episodes since a boom in retail option trading began in 2020, around the time that the COVID-19 pandemic was declared.
/tinyurl.com/55822mty
Stock Sales Suffer Worst First Quarter Since 2009 on Rates, SVB
Drew Singer - Bloomberg
US equity capital markets are having the slowest start to a year since 2009, and dealmakers fear a rebound is nowhere near.
Initial public offerings and secondary stock offerings bore the brunt of first-quarter recession concerns stemming from the Federal Reserve's aggressive rate-hike cycle and the flight to safety over fears about the banking system after the collapse of Silicon Valley Bank. This comes on the heels of a historic slowdown in 2022.
/tinyurl.com/3pax6x3j
Short Sellers in Bank Stocks Made $14 Billion Paper Profit: S3
Carla Mozée - Markets Insider
Bets against bank stocks worldwide resulted in paper profit of $14.3 billion for short sellers during a chaotic March, according to S3 Partners data.
There was an 11.4% rise in new short selling in global bank stocks, amounting to $12.8 billion, said S3, a firm that tracks short interest on Wall Street, in a report released Wednesday.
/tinyurl.com/bdf38d8k
S&P 500 logs highest close in 3 weeks, powered by tech stocks and calm in banking sector
Isabel Wang and Frances Yue - MarketWatch
U.S. stock indexes finished sharply higher on Wednesday, helped by a rally in technology shares and easing concerns about stress in the banking sector.
The S&P 500 booked the highest close since March 6, two days before the collapse of Silicon Valley Bank, according to Dow Jones Market Data.
/tinyurl.com/5n7teub3
How Much Did the Banking Crisis Tighten Financial Conditions?
Eric Wallerstein - WSJ
The banking turmoil likely will drag on economic growth as banks rein in lending and unease lingers in financial markets.
The question is: Just how much will conditions tighten?
/tinyurl.com/3d3v3388
The World's Most Important Oil Price Is About to Change for Good
Sharon Cho, Alex Longley and Lucia Kassai - Bloomberg
After years of wrangling, the world's most important oil price is about to be transformed for good, allowing crude supplies from west Texas to help determine the price of millions of barrels a day of petroleum transactions.
The shift is because the existing benchmark, Dated Brent, is slowly running out of tradable oil for it to remain reliable. As such, its publisher S&P Global Commodity Insights â better known by traders as Platts â has been forced to make a dramatic overhaul.
/tinyurl.com/4m65z4py
| | | | | | Exchanges | | | Expert opinion: the benefits of trading Micro-DAX Options
Eurex
Since 19 December 2022, the Eurex Micro Product Suite includes a new offering, the Micro DAX Options. This product offers a small notional on the German benchmark index DAX and gives market participants easy access to the 40 most important German equities. The trend towards developing mini- and micro-versions of established benchmark contracts has taken hold on global stock exchanges over the last five years. They are aimed at investors with smaller investment budgets and allow larger institutional investors to fine-tune investment and hedging strategies while gaining access to benchmark indices.
/tinyurl.com/2p96s67w
ICE Announces Record Depths of Liquidity Across U.S. Natural Gas Markets
Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, today announced record levels of liquidity across its U.S. natural gas markets as customers manage price risk. ICE offers hundreds of physically delivered and cash settled contracts covering regional hubs across North America to allow customers to manage the difference in price of natural gas delivered at each hub. On March 28, 2023, open interest hit a record high of 17.45 million contracts across North American natural gas futures. In futures and options, open interest is up 17% year-over-year (y/y) at 27.84 million with volumes up 15% and average daily volume year to date of 1 million contracts.
/tinyurl.com/2p8mdh9r
Crypto Exchange Gemini Looking to Launch Overseas Derivatives Operation: The Information
Helene Braun - CoinDesk
The U.S.-based crypto exchange Gemini founded by Cameron and Tyler Winklevoss is reportedly looking to launch an international cryptocurrency derivatives exchange, The Information reported. The platform would specifically offer perpetual futures, a type of derivative that is banned in the U.S. for retail traders as it doesn't have an expiration date and can be traded with sizable leverage, and is therefore considered a highly risky product.
/jlne.ws/3JQvh4q
The Implementation Of The Gross Client Margin Model Initiative, By
The Canadian Derivatives Clearing Corporation, And Open Interest
TMX
The Canadian Derivatives Clearing Corporation (CDCC) is planning to implement the "Gross
Client Margin Model" (GCM) on April 3, 2023.
/bit.ly/3ZuRriz
| | | | | | Regulation & Enforcement | | | Fixed Income and Options: The Other Market Structures Remarks at the Fixed Income Forum Spring Roundtable
Commissioner Caroline A. Crenshaw - SEC
Thank you Thanos [Papasavvas], for that kind introduction, and thanks to all of you for inviting me here today.
Before I begin, I must give the customary disclaimer that the views I express today are my own and do not necessarily reflect the views of my fellow commissioners or the staff. At the end of last year, my fellow Commissioners and I voted to propose a broad package of reforms aimed primarily at improving competition, transparency, and integrity in the equity markets.[1] Those proposals have generated their fair share of attention and discussion, and rightfully so, as the equity markets play a key role in allowing Americans to invest and grow their savings. I am pleased that the SEC has undertaken these efforts to try to improve outcomes for investors, and retail investors in particular, and I am reviewing the comments with interest.
/tinyurl.com/2mmkwv47
Crypto Giant Binance Offered Perks to 'Flash Boys,' Regulator's Lawsuit Says; CFTC says exchange allowed U.S.-based trading firms to access its international derivatives market, circumventing ban on Americans
Alexander Osipovich - The Wall Street Journal
A regulator's lawsuit against crypto exchange Binance Holdings Ltd. has shed light on the secretive role of high-frequency traders in crypto and how Binance sought to curry favor with such big-ticket customers. The Commodity Futures Trading Commission's lawsuit, filed Monday, shows that Binance ran a "VIP" program for big trading firms that gave them various perks including slightly faster access to the exchange's core systems than other customers enjoyed.
/rb.gy/j67w
| | | | | | Moves | | | CME Group Appoints Tim McCourt as Global Head of Financial & OTC Products
CME Group
CME Group, the world's leading derivatives marketplace, today announced that it has appointed Tim McCourt to serve in an expanded role as Senior Managing Director, Global Head of Financial & OTC Products, following the retirement of Sean Tully, Senior Managing Director, Interest Rates and OTC Products, on June 2, 2023.
/tinyurl.com/36ehkpze
| | | | | | Strategy | | | LULU Stretches Its Daily Volume
Cboe (Video)
In #Vol411, Scott Bauer @cboesib covers recent #options volume trends, including activity in $MU $LULU $TSLA & INTC.
/tinyurl.com/yc75v3ad
| | | | | | Miscellaneous | | | Wall Street Bonuses Fall by Most Since 2008
Alyssa Lukpat - WSJ
The average Wall Street bonus fell 26% last year, the biggest percentage drop since the financial crisis, as a slump in deal making cut into bankers' compensation.
Financial employees received average bonus checks of $176,000 last year, compared with a record high $240,000 a year earlier, the New York state comptroller's office said in a report Thursday. The annual report measures bonuses paid to employees in New York's securities industry and doesn't include base salaries, stock options or other forms of deferred compensation.
/tinyurl.com/2p8p7f3k
ChatGPT Could Revolutionize Investing but Is More of a 'Copilot': Study
Filip De Mott - Markets Insider
OpenAI's ChatGPT can serve as an effective assistant in portfolio management, a South Korean academic paper published this month has determined.
While the chatbot can't optimize portfolios the way a human can, it could be a convenient option for investors who lack knowledge or expertise in asset management, according to Seoul National University's Hyungjin Ko and Jaewook Lee.
/tinyurl.com/2p9c2vfb
Michael Burry of 'Big Short' fame says he was 'wrong' to tell investors to 'sell'
Joseph Adinolfi - MarketWatch
Michael Burry, the hedge-fund manager at Scion Asset Management made famous by Michael Lewis's book "the Big Short," said in a Thursday tweet that he was "wrong" to tell investors to sell stocks two months ago.
Burry issued a one-word tweet on Jan. 31 advising his followers to "sell." While he didn't elaborate, MarketWatch's Steve Goldstein noted at the time that it wasn't hard to fill in the blanks.
/tinyurl.com/4uau2mcz
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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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Editor-in-Chief
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Editor
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