| | | | | | | | January 16, 2025 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | FIA President and CEO Walt Lukken and FIA Board Chair Alicia Crighton shared the FIA's 2024 Year in Review, writing that last year "brought another consecutive year of record growth in our markets. And a review of FIA's work demonstrates the breadth, effectiveness and depth of our advocacy and engagements." Drivers of that growth included retail trading, especially in India, but also in US equity options and futures, crypto products and prediction markets, along with record levels of trading activity in US Treasury futures and options, they wrote. You can go HERE to read more.~SR
| | | | | | Lead Stories | | | Outlook 2025: Chris Isaacson, Cboe Global Markets
Anna Lyudvig - Traders Magazine
What were the key theme(s) for your business in 2024?
In 2024, Cboe was well-positioned to capture several long-term secular growth trends that we believe will continue well into 2025. Chief among these was the sustained growth in U.S. options trading, with the industry achieving record volumes for the fifth consecutive year in 2024. Simultaneously, we saw an increasing appetite for exposure to the U.S. markets from investors globally. In response to this demand, Cboe continued to grow its footprint across the U.S., Europe and APAC to better meet our customers where they are. We also continued to innovate and expanded our proprietary S&P 500 Index (SPX) and Cboe Volatility Index (VIX) product suites with new product launches, further enhancing the functionality and accessibility of our offerings for a wider range of customers.
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Hindenburg Research Exit Shows It's No Market for Old Shorts; The short seller is shuttering, removing a much-needed corporate policeman from the financial arena.
Chris Hughes - Bloomberg
A little more than a year after legendary Enron short-seller Jim Chanos threw in the towel on activist short selling, the equally famous Hindenburg Research is calling it a day. Short selling, short-trade research and public activism are all key to the functioning of the stock market. And yet it's fiendishly hard to combine the three strands into a business that endures. The starting point is that the market has a structural deficit of skepticism. Even after regulatory reform, investment-bank research suffers potential conflicts of interest - hence all those disclaimers. True, investors still value the output. But that's partly because they don't really have to pay much for it. And big brokers aren't in business to run dogged investigations into any red flags signaled by company accounts.
/jlne.ws/4fZOdfg
*****The Financial Times version of this story is titled "Short seller Nathan Anderson to shut down Hindenburg Research."~JJL
More Crypto ETFs Are Almost Certainly Coming Under Trump
Paul R. La Monica - Barron's
Spot Bitcoin exchange-traded funds marked their first anniversary not long ago. ETFs for ethereum, the world's second-most valuable cryptocurrency, have been trading now for roughly six months.
/jlne.ws/42zL8Q3
Pension funds dabble in crypto after massive bitcoin rally; Interest from typically conservative schemes has grown following launch of US crypto ETFs
Mary McDougall, Nikou Asgari and Alan Livsey - Financial Times
Pension funds are dipping their toes into buying bitcoin, in a sign that even typically staid corners of finance are finding it hard to ignore the potential outsized returns from cryptocurrencies. Pension schemes for the states of Wisconsin and Michigan are among the top holders of US stock market funds devoted to crypto, while some pension fund managers in the UK and Australia have also made small allocations in recent months to bitcoin using funds or derivatives.
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| | | | | | Exchanges | | | Estimated stressed losses rise at OCC, LCH and JSCC; New stress scenario boosts worst-case loss at Options Clearing Corporation by half
Joshua Walker - Risk.net
Four central counterparties (CCPs) increased their respective hypothetical stress losses in excess of initial margin that would be caused by either a single- or double-member default to all-time-highs. In the third quarter of 2024, the Options Clearing Corporation estimated that the worst-case default of a single member would result in a two-day loss of $9 billion, up 50.9% from Q2 and trumping the previous record of $6.1 billion set in Q4 2021.
/jlne.ws/40gpCNo
Cboe Unveils New Brand for Exchange Technology Platform, Marking New Chapter in Technology Innovation and Growth
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today unveiled a new brand identity for its exchange technology platform, signaling an exciting new chapter in Cboe's ongoing evolution and deepening commitment to delivering best-in-class trading technology and innovation for market participants around the globe. The technology platform powering Cboe's world-class exchange operations for trading options, futures and equities across its markets globally is now named Cboe Titanium (Cboe Ti).
/jlne.ws/4hijJpC
Euronext's bid for single-stock options market share falls short
Lucy Carter - Global Trading
Euronext's expansion of single-stock options is not paying off, with the exchange reporting a decline in traded contracts across the board.
In single stock futures and options, Euronext's market share was down 10 percentage points to 17% over the year. At year-end, 78 million contracts were traded at the exchange to Eurex's 302.5 million.
/jlne.ws/40qJOfE
Russell US Indexes to move to a semi-annual reconstitution frequency from 2026
LSEG
FTSE Russell, the global index provider, today announces that the Russell US Indexes reconstitution will move to a semi-annual frequency in 2026, with rebalancing continuing on the fourth Friday in June and with the additional implementation date of the second Friday in November. Russell US Indexes are currently reconstituted annually in June and based on more recent market dynamics and increased volatility, FTSE Russell explored the impact of reconstituting the Russell US Indexes semi-annually. Based on this evaluation, FTSE Russell announces the decision to add a semi-annual Russell US Indexes reconstitution on the second Friday of November, beginning November 2026, contingent on a successful parallel test run in November 2025.
/jlne.ws/3DYFVqv
FTSE Russell announces first Russell 1000 index fund in Japan
LSEG
The fund will be eligible for the government sponsored tax incentive investment program, NISA
FTSE Russell, the global index provider, today announces the launch of the first Russell 1000 index fund, My SMT Russell 1000 index, in Japan, in collaboration with SBI Securities Co. Ltd. and Sumitomo Mitsui Trust Asset Management. This is the first Japanese-domiciled fund linked to the flagship Russell index. The Russell 1000 Index fund will be launched today and managed by Sumitomo Mitsui Trust Asset Management, and SBI Securities Co. Ltd. will ensure the fund reaches retail investors across Japan.
/jlne.ws/4g8VOZ2
MEMX Options Deprecation of MEMO SBE, FIX, and FIX Drop Copy Versions 1.6 and Earlier
MEMX
Reminder, effective for trading on Monday, March 3, 2025, MEMX Options MEMO SBE, FIX, and FIX Drop Copy versions 1.6 and earlier will be depreciated. If your firm currently has 1.6 or earlier versions please contact Market Operations to update the version on or before Friday, February 28, 2025.
/jlne.ws/3Wl22Og
New Product Summary: Initial Listing of Monday, Tuesday, Wednesday, and Thursday Weekly Options on Corn, Soybean, Wheat, Soybean Oil, and Soybean Meal Futures - Effective February 10, 2025
CME Group
Initial Listing of Monday, Tuesday, Wednesday, and Thursday Weekly Options on Corn, Soybean, Wheat, Soybean Oil, and Soybean Meal Futures.
/jlne.ws/4jeYhDR
| | | | | | Strategy | | | Zero DTE Profit Targets and the VIX
tastylive (Video)
It's not always easy to take the measure of a market, whether you've been trading for a day or a decade. On this segment we look under the hood-options probabilities, volatility, trading strategies, futures, you name it-so your trading mechanics are built to manage more winners.
/jlne.ws/3PIb43W
Why a Lucrative TSMC Arbitrage Trade Is Too Dangerous for Hedge Funds; ADR premium to Taiwan stock has hit highest since 2009; Chipmaker is expected to post quarterly profit growth of 55%
Charlotte Yang and Cindy Wang - Bloomberg
In theory, it's one of the financial world's juiciest arbitrage trades: shares of Taiwan Semiconductor Manufacturing Co. fetch far higher prices in New York than they do in Taipei.
Finance 101 says short the US stock, buy the Taiwan stock and earn easy profits as the prices move toward convergence.
/jlne.ws/42iTqLQ
| | | | | | Events | | | Registration is open for the 2025 Options Industry Conference. The 43rd annual Options Industry Conference will be held at PGA National Resort in Palm Beach Gardens, FL from May 6-8, 2025. Register HERE.
| | | | | | Miscellaneous | | | This Hedge Fund Created an Excel on Steroids; The need to analyze an overwhelming influx of stock data-and to do it fast-pushed Man Group to become its own kind of tech company
Isabelle Bousquette - The Wall Street Journal
A tool for crunching billions of rows and millions of columns of data is the stuff of nightmares for some. For London-based hedge fund Man Group, it was a dream. When the firm couldn't find something on the market to, for example, consistently and quickly pull and analyze the entire universe of daily stock prices for all time, it sought to make it a reality. The result is ArcticDB, an open-source tech tool the firm developed internally over the course of a decade and is beginning to commercialize now among customers like financial software and media company Bloomberg. Bloomberg signed on in 2023 and has been working with Man Group to build on the tool ever since.
/jlne.ws/42hPo6r
****** Just what I wanted, a jacked spreadsheet.~JJL
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Editor
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