| August 04, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Market Volatility Not Over, Allspring's Miletti Says
Bloomberg (Video)
Ann Miletti, head of active equity at Allspring Global Investments, says the recent market rally has been healthy but the volatility isn't over yet. She speaks on "Bloomberg Markets: The Close."
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Treasury Curve Inversion Deepens as Yields Jump and Then Plunge
Benjamin Purvis and Michael Mackenzie - Bloomberg
The inversion of the Treasury yield curve deepened Wednesday as the market proved volatile once again, with yields surging on the back of increased confidence about the prospect of Federal Reserve hiking interest rates and then tumbling anew before the day was out.
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ETF Takeover of Wall Street Deepens as Debt Funds Are OK'd as Collateral
Katherine Greifeld - Bloomberg
CME Group Inc. delivered another win to the booming $1.3 trillion bond exchange-traded fund market.
The derivatives exchange operator's clearing unit will accept a handful of short-dated Treasury ETFs to meet initial margin requirements, according to a statement Tuesday. Five funds including the $18 billion SPDR Bloomberg 1-3 Month T-Bill ETF (ticker BIL) qualify, CME said separately.
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| | | | | | Exchanges | | | Cboe Global Markets Reports Trading Volume for July 2022
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today reported July 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 July 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.
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Miami International Holdings Reports July 2022 Trading Results; MIAX Options and MIAX Pearl Equities Set Year-to-Date Volume Records
MIAX
Miami International Holdings, Inc. (MIH) today reported July 2022 trading results for its U.S. exchange subsidiaries - MIAX , MIAX Pearl and MIAX Emerald (together, the MIAX Exchange Groupâ¢), and Minneapolis Grain Exchange (MGEXâ¢).
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CME Group to Launch Euro-denominated Bitcoin and Ether Futures on August 29
CME Group
CME Group, the world's leading derivatives marketplace, today announced it plans to further expand its cryptocurrency derivatives offering with the introduction of Bitcoin Euro and Ether Euro futures on August 29, pending regulatory review. Designed to match their U.S. dollar-denominated counterparts, Bitcoin Euro and Ether Euro futures contracts will be sized at five bitcoin and 50 ether per contract. These new contracts will be cash-settled, based on the CME CF Bitcoin-Euro Reference Rate and CME CF Ether-Euro Reference Rate, which serve as once-a-day reference rates of the euro-denominated price of bitcoin and ether. These new futures contracts will be listed on and subject to the rules of CME.
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NYSE-owner ICE profit beats as volatility drives up trading volumes
Manya Saini - Reuters
Intercontinental Exchange (ICE.N) beat Wall Street estimates for second-quarter profit on Thursday, as the New York Stock Exchange's owner benefited from choppy global markets that led to a surge in trading volumes, sending its shares up over 4%.
Investors actively rejigged their portfolios to hedge against potential risks amid rapidly rising rates and decades-high inflation.
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Meet OCC's Credit Risk Management Team
OCC
The Credit Risk Management team serves a critical role by safeguarding OCC from counterparties who exhibit elevated credit or operational risk, or who lack appropriate risk management programs. CRM is responsible for identifying, measuring, monitoring, managing and reporting various risks and exposures introduced to OCC by clearing members, banks and other critical counterparties. There are 17 team members between our Dallas and Chicago offices.
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| | | | | | Regulation & Enforcement | | | Senate Plan Would Put Bitcoin, Ether Under Commodity Regulator's Watch
Paul Kiernan - WSJ
Leaders of a Senate committee are pitching legislation that would assign oversight of the two largest cryptocurrencies, bitcoin and ether, to the federal agency that regulates milk futures and interest-rate swaps.
Senate Agriculture Committee Chairwoman Debbie Stabenow (D., Mich.) and top-ranking Republican John Boozman of Arkansas unveiled a plan Wednesday that would empower the Commodity Futures Trading Commission to regulate spot markets for digital commodities, a newly created asset class. Currently the CFTC has authority to police derivatives, such as futures and swaps, rather than underlying commodities.
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CPMI-IOSCO discussion paper on non-default losses welcomed by FIA
FIA
FIA welcomes a recent discussion paper on practices used by central counterparties to address non-default losses, such as losses from cyberattacks or system outages. The paper was published by two international standard-setters, the Bank for International Settlements' Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO).
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Complex Products: In Need of A Solution
Dorsey & Whitney LLP - JDSupra
Complex financial products continue to present difficult issues for the Commission. In many instances the products involved are so complex that is may be questionable if any amount of policies, procedures and disclosure will be sufficient to support a suitable recommendation.
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| | | | | | Technology | | | Cboe's Snowflake Partnership Signal a Cloudy Future for Capital Markets
Harpal Sandhu - TABB Forum
Some of the biggest names in capital markets moving away from on-premise environments signals that cloud is, undoubtedly, the future of market infrastructure. There are multiple reasons to believe that firms are shifting towards this technology as a central component of their technology stack, writes Harpal Sandhu, CEO of Integral. Cloud computing has already had a significant impact on banking and our research from last year shows that the vast majority of trading in the $6.6 trillion-a-day FX markets is expected to migrate to the cloud over the next five years globally, Mr. Sandhu explains.
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| | | | | | Strategy | | | The S&P 500 is so close to crossing this crucial level and challenging the bear market's trend line
Lawrence G. McMillan - MarketWatch
The S&P 500 index may be about to secure two major bullish SPX, -0.02% milestones.
First, the S&P has rallied from that mid-June low right up to the major resistance at 4170. A two-day close above that level would be quite bullish and would set the stage for a challenge of the downtrend line defining this bear market as well as a challenge of the 200-day moving average - both of which are currently near 300.
Second, the trend of VIX is changing, which would mean an intermediate-term buy signal. More about that later.
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Can long short funds offer a port in a stock market storm?
Bill Casey and Nick Kissack - Schroders
To say 2022 has been a difficult year for investors would be an understatement. What is particularly rare about this year is the fact that traditional diversification options haven't worked. Diversifiers such as 60/40 equity/bond portfolios, defensive assets (such as consumer staples, real estate, utilities), new assets like cryptocurrencies and even gold have failed to protect investors from losses.
Something similar happened in the global financial crisis (GFC) in 2008, and again briefly in March 2020 when the global lockdowns led to a liquidity shock and meltdown in financial markets. This phenomenon typically only comes about in serious crises and thus is expected to be a very rare event.
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Equity Index market briefing August 2022
Eurex
Are we seeing a dead-cat bounce, or is Jim Cramer right? The jury is still out. In July, equity markets saw relative relief from the selling pressure as some seized upon the interest rate neutrality language used by the Fed as an indication that further rate increases were less likely. The bounce was most pronounced for U.S. markets, specifically the battered tech sector, though both the FTSE 100 and broad STOXX Europe 600 ended with monthly gains. As global interest rates mean revert, real estate has started to wobble in certain countries, notably China and Australia. Another secondary effect is the re-emergence of FX carry trades resulting in a strong dollar. So, expect to hear more American accents in the Mediterranean this summer.
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Wide World of Options: Using Implied Volatility to Implement Strategies
The Options Insider (Audio)
When markets become volatile, some investors see risk whereas others, opportunity. And thanks to the flexibility of trading options, investors can avail themselves of any number of strategies to potentially take advantage of these volatile markets or protect themselves from the uncertainty. Join seasoned options pros Mark Benzaquen and Ken Keating as they discuss the ins and outs of volatility as well as metrics such as IV rank, IV percentile, and strategies for both low and high IV situations.
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| | | | | | Miscellaneous | | | The surprising industries luring data talent away from Wall Street
Max Bowie - WatersTechnology
Two well-known figures in the world of financial data, Shruti Thaker and Jeremy Baksht, recently got new jobs. Nothing surprising about that, you might rightly say. But what is surprising is not their new rolesâboth are in data strategyâbut rather the companies where they're now performing those roles. Thaker and Baksht left careers in the financial data realm to work at large corporations outside financial services.
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