| July 07, 2021 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
|
| | | | Observations & Insight | | | ****SC: Cboe Global Markets reported its June 2021 monthly trading volume statistics across global business lines late Tuesday and also provided guidance for revenues per contracts for second-quarter 2021. Among the month's volume highlights was a 12.8% gain for both total options volume and ADV compared with June 2020. Year-to-date total options volume was up compared with the same period a year ago, by 14%, but total futures volume and ADV traded on the exchange was down 0.9% from a year ago. In its guidance for second-quarter 2021, Cboe forecast RPC (revenue per contract) for total options in the period would be 3% to 4% lower than the projected average of 20 cents for the two months ended May 31, 2021. The exchange operator said a higher percentage of its options volume currently stems from multi-listed options, which have a lower RPC. More details are here.
| | | | | | Lead Stories | | | Record Everything in U.S. Stock Market, Including Retail Froth
Katherine Greifeld - Bloomberg
Retail investors poured money into markets as equities embarked on a nearly record-run of all-time highs in June. Whether they'll stick around when volatility inevitably resurfaces remains to be seen.
Last month, TD Ameritrade's Investor Movement Index -- a measure that has tracked clients' positioning in the market since 2010 -- rose to the highest level on record, according to data released Tuesday. The influx came as trading volume dropped off while the S&P 500 hit five consecutive record closes to end the month, en route to the longest streak since 1997.
/jlne.ws/36ilUXI
Hertz's Warrants Deserve Investors' Attention
Andrew Bary - Barron's
Warrants are an unusual financial instrument, and they accounted for the bulk of the value received by shareholders of Hertz Global Holdings as part of its emergence from bankruptcy last week.
These warrants have landed in brokerage accounts and many individual investors are befuddled by them. Some are selling the warrants (ticker: HTZZW), which continue to trade inexpensively relative to Hertz's new equity (HTZZ).
/jlne.ws/3woSzpo
AMC, GameStop Stock Headed for Longest Losing Streaks Since May
Connor Smith - Barron's
Meme stocks AMC Entertainment and GameStop fell sharply on Wednesday, extending their losses for the fourth day in a row after weeks of sideways trading.
AMC stock (ticker: AMC) was down 9% to $45.52 Wednesday morning, while GameStop stock (GME) was down 7.5% to $184.56. Shares of Bed Bath & Beyond (BBBY) and BlackBerry (BB), both stocks caught in the meme trade amid interest from Reddit users, were down about 4% each.
/jlne.ws/3hpa0lv
U.S. shale firms hesitate to hedge more, despite surge in oil prices
Devika Krishna Kumar - Reuters
U.S. shale producers promised investors they would keep a tight rein on spending in 2021, and the restraint on drilling has extended to their hedging strategies even as crude prices surged due to disarray among OPEC and allied producing countries.
Oil demand is rebounding from demand destruction during the pandemic, but output has not kept up, boosting prices. Crude futures are above $73 a barrel, near three-year-highs, and some analysts believe oil could hit $100. In the past, shale firms boosted output and added to hedges as oil rallied, eager to lock in profits.
/jlne.ws/2TMUvum
| | | | | | Exchanges | | | Cboe Global Markets Reports June 2021 Trading Volume
Cboe Global Markets
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today reported June monthly trading volume statistics across its global business lines, and provided guidance for selected revenue per contract/net revenue capture metrics for the second quarter of 2021. The data sheet "Cboe Global Markets Monthly Volume & RPC/Net Revenue Capture Report" contains an overview of certain June 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.
/bit.ly/3qPTkGE
Nodal Exchange Achieves New Records in Power and Environmental Futures
Nodal press release via Valdosta Daily Times
Nodal Exchange announced new trading records in power and environmental futures as of end of June 2021. Nodal achieved record half year power volume for the first half of 2021 with 1.069 billion MWh traded. Nodal also set a new calendar month record for June with 175 TWh of traded power futures volume in the month. Power futures open interest also set a new record at the end of June with 1.092 Billion MWh.
/bit.ly/3jVYiAi
What the stock market's 'black swan' index hitting an all-time high tells us
Mark Hulbert - MSN Money
In late June the CBOE's SKEW Index â a.k.a the "black swan" index â hit an all-time high. That reading was more than 40% higher than its average since 1990, which is how far back data extend. In fact, the June reading was 20% higher even than the highest the SKEW reached during the U.S. stock market's February-March 2020 waterfall decline.
This new high certainly seems scary. Yet I'm not convinced that the SKEW's high recent readings mean that more traders than usual are betting on a sharp decline for the the U.S. stock market, including the Dow Jones Industrial Average the S&P 500 Index and the Nasdaq Composite.
/bit.ly/3hEXjlk
CME Group offers flexibility during growing season
TOM - KIWA Radio
The CME Group is promoting some of its products that can help producers manage their risk at targeted times throughout the growing season.
CME Group's Tim Andriesen tells NAFB that options on agricultural futures products were first introduced back in the mid 1980's as a new way for farmers and market participants to manage their price risk. He says weekly options provide a shorter time to expiration.
/bit.ly/2TEvn9o
| | | | | | Regulation & Enforcement | | | Robinhood's Debut Is Clouded by SEC Scrutiny of Payment for Order Flow; The practice provided 81% of the online brokerage's first-quarter revenue
Alexander Osipovich - WSJ
Robinhood Markets Inc. is on a collision course with regulators over a controversial practice that generates most of its revenue, as the online brokerage gears up for a highly anticipated initial public offering. In its IPO filing, released Thursday, Robinhood disclosed that 81% of its first-quarter revenue came from sending its customers' stock, options and cryptocurrency orders to high-speed trading firmsâa practice known as payment for order flow.
/jlne.ws/3qTWlWp
Banks' Market Abuse Risks Are Ebbing After Pandemic Spike
Silla Brush - Bloomberg
The return to the office seems to be helping curb the risk of market abuse at big banks and money managers, according to TradingHub, a market data firm.
Signs of potential market abuse have returned to pre-pandemic levels after spiking in the early stages of the global outbreak, according to the firm's analysis of data from clients who have a combined $20 trillion in assets under management.
/jlne.ws/3woW9j2
ISDA Recommends Aligning Clearing and Trading Obligations
ISDA
On July 6, ISDA published a briefing paper outlining its support for alignment of the clearing obligation under the European Market Infrastructure Regulation and the derivatives trading obligation under the Markets in Financial Instruments Regulation. ISDA recommends that alignment be based on transaction and counterparty terms, with a view to enhancing legal certainty for market participants.
/jlne.ws/3xqKhyt
Jefferson County man charged in federal court with operating binary options scheme
The Times Leader
COLUMBUS â A federal grand jury indicted William T. Caniff Jr., 52, of Toronto, alleging multiple wire fraud and money laundering charges related to a binary options fraud scheme, according to information from the office of Vipal J. Patel, acting United States attorney for the Southern District of Ohio.
According to the indictment, Caniff fraudulently misappropriated at least $2 million of investors' funds for his own benefit and the benefit of a business partner.
/bit.ly/3xnBq0E
| | | | | | Moves | | | ICAP sales trader joins Quantitative Brokers amid APAC expansion
Institutional sales trader at ICAP joins execution algo provider Quantitative Brokers as it continues with plans to expand in Asia Pacific.
Hayley McDowell - The Trade
An institutional sales trader at interdealer broker ICAP has joined Quantitative Brokers in a newly created sales position based in Sydney.
James Clarke has joined the Asia Pacific sales team at the futures and options execution algorithm provider effective immediately, reporting to chief sales officer Tim Gits.
/bit.ly/3dRQpIy
| | | | | | | | | JLN Options is sponsored by: | | | | | | | | | | | | | | | | | | |
|
|
| | | |
| | | | 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
Publisher | | | Sarah Rudolph
Editor-in-Chief
| | | Jeff Bergstrom
Editor
| | | | |
|
|
Disclaimer: All John Lothian Newsletters, JohnLothianNews.com, MarketsWiki.com and MarketsReformWiki.com are products of John Lothian News, a division of John J. Lothian & Company, Inc. The opinions expressed in all John J. Lothian & Company, Inc. publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers. Futures and options trading involve risk. Past results are no indication of future performance. Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any website or newsletter content.
© 2019 John J. Lothian & Company, Inc. All Rights Reserved. |
|
|
