| April 13, 2022 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | S&P 500 VIX Index Seen Staying Elevated With Fed Now a 'Source' of Volatility
Joanna Ossinger - Bloomberg
Strap in for spikes in the S&P 500 index's so-called "fear gauge" now that the Federal Reserve has flipped from being a friend to something more akin to a foe to markets as it tightens monetary policy.
That's in essence the view from strategists at Bank of America Corp. for the Cboe Volatility Index, a gauge of implied equity swings for the S&P 500.
/jlne.ws/37O93AQ
Stagflation Has Wall Street Investors Like Vanguard Sinking Billions Into Hedges
Greg Ritchie, Liz McCormick, and Ruth Carson - Bloomberg
It's the next big market call that could enrich traders across Wall Street: The raging global energy crisis and ever-more hawkish central banks knock key economies into 1970s-style stagflation.
It's a long shot for now, but anxiety is building among money managers that this market scenario -- out-of-control inflation just as growth slumps -- will eventually come to pass, especially in Europe.
/jlne.ws/3roBmg2
Losses multiply for wealthy investors in first quarter
Joshua Oliver - Financial Times
Wealthier UK investors have suffered greater losses than smaller traders since the beginning of the year, as market turbulence struck down the riskier portfolios typically favoured by those with higher levels of investment.
Interactive Investor, which has roughly a one-fifth share of the UK's self-directed investment market, said on Monday that customers with more than GBP1mn invested lost 4.2 per cent in the first three months of 2022, more than the 3.6 per cent loss for the average account holder.
/jlne.ws/368lirg
Central bankers cannot afford to ignore the pain in commodities
Karen Petrou - Financial Times
In the midst of chaos there is always volatility, and the commodities sector is very much feeling the pain. This has led to growing speculation that central banks will step in if unprecedented price swings show signs of systemic impact. I do not know any central banker who wants to bail out commodities, but if market stress turns systemic, they will act. Indeed, even if the stress seems manageable, they may intervene if they believe public welfare is at risk when core commodities go from pricey to prohibitive.
/jlne.ws/3M7n2Rb
| | | | | | Exchanges | | | Cboe to Add Tuesday and Thursday Expirations for SPX Weeklys Options
Additional offerings build on success of Cboe's existing SPX Weeklys options; will now provide expirations every trading day of the week
Cboe Global Markets
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced it will list S&P 500 Index (SPX) Weeklys optionsSM with Tuesday expirations beginning Monday, April 18, and Thursday expirations beginning Wednesday, May 11. These new listings build on the success of Cboe's popular SPX Weeklys options, which currently include Monday, Wednesday and Friday-expiries, and will expand the product suite to provide expirations every trading day of the week.
/bit.ly/3O9mjjX
Disable Cabinet Trades of Four (4) Metals Options Contracts
CME Group
Effective Sunday, May 8, 2022, for trade date Monday, May 9, 2022, and pending all relevant CFTC regulatory review periods, Commodity Exchange, Inc. ("COMEX" or "Exchange") will amend Rules XXX101.C. ("Price Increments") of the four (4) metals option contracts noted in the table below ("the Contracts") to disable cabinet transactions of the Contracts (collectively, the "Rule Amendments")
/bit.ly/3xwWe8y
Increase of Maximum Order Quantity ("MOQ") of the Options on Micro Bitcoin Futures, Options on Micro Ether Futures, and Micro Ether Futures Contracts
CME Group
Effective Sunday, May 8, 2022, for trade date Monday, May 9, 2022 Chicago Mercantile Exchange Inc. ("CME" or "Exchange") will increase the maximum order quantity ("MOQ") of the Options on Micro Bitcoin Futures, Options on Micro Ether Futures, and Micro Ether Futures contracts (the "Contracts") for trading on the CME Globex electronic trading platform ("CME Globex") as more specifically described in the table below. Contract Title Rulebook
/bit.ly/37HWhUj
Deutsche Bank Preps for World's Shortest Stock Settlement System
Suvashree Ghosh - Bloomberg
India is rolling out the world's shortest equity trade-settlement cycle. A pain-free transition for foreign investors would spur others to follow, according to Deutsche Bank AG, the largest custodian bank in the country.
Higher currency transaction costs and the risk of operational delays are among concerns that have been flagged as the nation's exchanges leapfrog peers in New York and London with a next-day settlement system, compared with the two-day practice of most markets. The rules for foreign investors take effect around October.
/jlne.ws/36b0yiP
SGX Group reports market statistics for March 2022
SGX
Singapore Exchange (SGX Group) today released its market statistics for March 2022. Gains in derivatives volume drove performance for the first three months of 2022. Securities turnover rose as Singapore's stock benchmark returned over 9% for the quarter, the strongest in Asia-Pacific.
Derivatives daily average volume (DAV) increased to 1.2 million contracts in March - the highest in two years - as total traded volume climbed 42% month-on-month (m-o-m) to 26.3 million contracts. This lifted derivatives volume for the January-to-March quarter to 64.9 million contracts, up 17% quarter-on-quarter (q-o-q) over the October-to-December period. The average fee per contract for equity, currency and commodity derivatives for the quarter was S$1.55.
/jlne.ws/3E9hP8C
Kelli Haywood, the community impact manager at Cboe Global Markets, has been selected as the 2022 Executive Service Corps (ESC) Nonprofit Civic Leader of the Year. The Executive Service Corps is one of the nation's leading nonprofit consultancy services, serving over 1.2 million people each year.
| | | | | | Regulation & Enforcement | | | 'Black swan' LME nickel chaos shows regulators still missing market risks
Huw Jones and Pratima Desai - Reuters
Last month's chaos in London Metal Exchange nickel trading has shone a light on the failure of a core reform from the global financial crisis to help regulators quickly spot destabilising risks in markets.
The 2008 Lehman Brothers crash and bailout of insurer AIG prompted G20 leaders to increase transparency in over-the-counter (OTC) or off-exchange derivatives such as credit default swaps by making it mandatory to report transactions to repositories.
/jlne.ws/3jCfMAs
| | | | | | Moves | | | Bermuda Stock Exchange Announces Appointment of Ailish Byrne as Chief Compliance Officer Designate
MIAX
Bermuda Stock Exchange (BSXTM), a wholly owned subsidiary of Miami International Holdings, Inc., today announced the appointment of Ailish Byrne as Chief Compliance Officer Designate.
/jlne.ws/2K3gU18
| | | | | | Education | | | What to Know About the Iron Butterfly Options Strategy
Nasdaq
All week, we've been unpacking options strategies with cool names. Next up, the iron butterfly is a flexible options strategy that can be placed using call or put options, but each trade's risk and reward parameters are unique to the options being used. Entering iron butterflies is a popular strategy among conservative traders who want to reduce risk on their trades but still generate decent returns.
Iron butterflies offer an excellent strategy for managing risk with limited profits. They are also widely considered to provide low-risk trade opportunities that give the traders defined reward limits to move the price out of the trading range.
/jlne.ws/3KFpuht
| | | | | | Events | | | ICYMI: The FIA is holding a webinar on Thursday, April 21 called "Q1 2022 Trends in Futures and Options Trading." FIA senior vice president of publications, data & research Will Acworth will discuss the topic with two experts from the futures execution desk at Morgan Stanley. The webinar takes place from 10:30 a.m. - 11:30 a.m. ET. You can go here to register.~SR
| | | | | | Miscellaneous | | | BlackRock Profit Increases 20%; The firm's assets under management dipped from over $10 trillion to $9.6 trillion
Angel Au-Yeung - WSJ
BlackRock Inc. BLK 0.65% reported higher quarterly profit even as market volatility lowered the investment firm's assets under management to $9.6 trillion. The world's largest asset manager reported net income of $1.4 billion, or $9.35 a share, in the first quarter of 2022 ending March 31, up 20% from $1.2 billion in the same period a year earlier.
/jlne.ws/3xtRMrg
JPMorgan Results Marred by $524 Million Loss Tied to Ukraine; Fixed-income trading revenue crushes estimates by $1 billion; Dimon sees inflation, war creating 'significant' challenges
Hannah Levitt - Bloomberg
JPMorgan Chase & Co.'s first-quarter results were marred by a $524 million loss tied to market fallout from Russia's invasion of Ukraine. The loss was driven by "funding spread widening as well as credit-valuation adjustments relating to both increases in commodities exposures and markdowns of derivatives receivables from Russia-associated counterparties," the company said Wednesday in a statement.
/jlne.ws/3O7WaSC
Vanguard's special ETF patent expires next year. Does it matter? Rivals could copy their structure, but the question is whether any will bother
Adrian D. Garcia - FT
More than two decades ago â before fund companies began converting mutual funds into ETFs and US regulators streamlined the ETF approval process â Vanguard executives had an idea. Rather than launch ETFs as a standalone vehicle, they decided to work on packaging them within a mutual fund. The idea led the firm in 2001 to debut the first ETF share class of a mutual fund.
/jlne.ws/3LWaOdK
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| | | Jeff Bergstrom
Editor
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