| December 10, 2021 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Risk-Off Before Inflation Data Spurs Flight to Megacap Quality
Lu Wang - Bloomberg
The three-day rebound in U.S. stocks ended Thursday as investors sold out of the riskiest assets ahead of Friday's inflation report and next week's Federal Reserve policy meeting.
Speculative shares bore the brunt of the selling, with baskets tracking initial public offerings and profitless technology companies slumping about 4%. A Bloomberg long-short portfolio that buys shares with the highest one-month volatility against those with the lowest price swings tumbled 3% -- the worst performance among 17 quantitative factors.
/bloom.bg/3DDSXUF
JPMorgan is offering big clients a tool to help navigate meme-stock volatility, report says
Natasha Dailey - Markets Insider
A new tool from JPMorgan allows Wall Street firms to keep an eye on what retail traders are doing, according to a Thursday report from Bloomberg.
The bank's "Through the Retail Lens" tool launched in September and is now being used by about 30 asset and quant fund managers, Bloomberg reported. The new tool shows retail flows, predicts the next "short-squeeze," and combs through Reddit and Twitter to determine retail traders' sentiment on a stock, the report said.
/bit.ly/3EF6ZXj
As Libor Goes Away, U.S. Replacement Makes a Big Trader Uneasy
Alexandra Harris and Nick Baker - Bloomberg
Dollar Libor's fate is set: It will no longer be available for new loans and other products starting on Jan. 1, mostly replaced by the benchmark that regulators want. But that doesn't mean everybody loves the Secured Overnight Financing Rate, the leading U.S. alternative. Take Don Wilson, founder of Chicago-based trading firm DRW, which will play a big role in the Libor-to-SOFR transition since his company trades derivatives tied to both rates. He thinks regulators made a mistake promoting SOFR as the right solution for everyone.
/yhoo.it/3q1tpMv
Ark's Cathie Wood: 'Queen of the bull market' faces her toughest test
Harriet Agnew and Robin Wigglesworth - Financial Times
No one comes close to embodying the US stock market boom quite like Cathie Wood.
Ark Invest, the investment company the Californian native founded in 2014, was made for those who fancy a version of the tech-driven bull market on steroids.
/on.ft.com/3dHcBVe
Here comes the crypto derivatives boom
Forkast
Investment banks' hunger for a new revenue stream is likely to drive up the popularity and registration of crypto derivatives products.
Interest in crypto derivatives is surging as investors show an appetite to bet on the movement of Bitcoin prices without actually having to hold the cryptocurrency itself. The number of Bitcoin futures exchange-traded funds filed with the Securities and Exchange Commission is a prime example. With Federal regulatory scrutiny intensifying, exchange-traded crypto derivatives such as BTC and ETH futures and options are in hot demand, especially for institutional investors.
/bit.ly/3dDfAOj
| | | | | | Exchanges | | | SGX reports market statistics for November 2021
SGX
Commodity volumes up sharply as China outlook remains in focus; New COVID-19 variant Omicron and rising inflation key themes for equities
Singapore Exchange (SGX) today released its market statistics for November 2021. Risk management activities amid price swings in the physical market sharply lifted volumes in our commodity derivatives market.
/bit.ly/3rUST0y
| | | | | | Regulation & Enforcement | | | U.S. DoJ launches expansive probe into short selling
Reuters
The U.S. Department of Justice (DoJ) has launched an expansive criminal investigation into short selling by hedge funds and research firms, Bloomberg News reported on Friday, citing people familiar with the matter.
The investigation, run by the DoJ's fraud section with federal prosecutors in Los Angeles, is probing how hedge funds tap into research and set up their bets, looking for signs that they improperly coordinated trades or broke other laws to profit, the report said.
/reut.rs/3rVjDxG
Hong Kong's Unfriendly Crypto Rules Boost Rival Efforts To Attract Bitcoin Billionaires
Zinnia Lee - Forbes
Regulatory uncertainty and travel restrictions are forcing the city's crypto elites to shift their operations to more hospitable jurisdictions.
Sam Bankman-Fried's time in Hong Kong was relatively brief, but incredibly lucrative. In the three years he spent in the city, the unabashed workaholic known for sleeping in his office established FTX, a crypto derivatives exchange that quickly became one of the world's busiest trading outlets. And the success of that business turned Bankman-Fried into the richest person in crypto at the age of 29 with a $26.5 billion fortune. And then he left.
/bit.ly/3mfmDBJ
| | | | | | Miscellaneous | | | Most Influential 2021: Gary Gensler
Nikhilesh De - Coindesk
When Gary Gensler came to the Securities and Exchange Commission (SEC), he had the reputation of a regulator who had reformed U.S. law to address novel financial products once before. In 2009, Gensler was given the task of wrangling the then out-of-control derivatives market after the crash in 2008 and the Great Financial Crisis. Twelve years later, he heads an agency overseeing a financial system shaped by that crisis and in the midst of a raging pandemic that has changed how retail customers interact with the system. And again Gensler is tasked with addressing a class of novel financial products.
/yhoo.it/3pGk78l
***** Gary would be on my list too. I am just not going to tell you which list.~JJL
Citadel billionaire Ken Griffin's son told him to buy a rare copy of the US Constitutionâ driving him to splash out $43.2 million to outbid a crypto group
Harry Robertson - Markets Insider
Ken Griffin said his son convinced him to buy a rare copy of the US Constitution, which the billionaire hedge-fund manager snapped up last month for $43.2 million, outbidding a crypto collective.
The Citadel founder upset some in the crypto community when he splashed out on one of the 13 surviving copies of the original 1787 printing of the historic document. That's because he beat ConstitutionDAO, which had raised more than $40 million from around 17,000 donors.
/bit.ly/3oLiffn
The Illustrated Misadventures of the World's Most Important Number
William Shaw and Alex Harris: Illustrations by Jaya Nicely - Bloomberg
In January the financial world will bid farewell to a measure that has guided banking for half a century. Called Libor, the London interbank offered rate, it represents banks' average cost for short-term borrowing. Companies will need to use an alternative for all new transactionsâloans, bond sales, hedges against rising and falling interest rates. What follows is a brief history of the spectacular and scandalous career of the world's most important number, as well as a look at what happens next.
/bloom.bg/3pImVBX
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