| October 08, 2024 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
|
| | | | Observations & Insight | | | Cboe's Henry Schwartz shared some observations on concentration on LinkedIn. In the listed options market, the top 50 symbols accounted for 71.6% of the volume in the last month, highlighting significant concentration. Cboe Global Markets' SPX index options made up 72% of index flow, while SPY and QQQ together represented 63% of ETF volume. Additionally, NVDA, TSLA, and AAPL continued to dominate as the top three single stocks. ~JJL
| | | | | | Lead Stories | | | Traders Are Piling Into Stock-Market Insurance
Gunjan Banerji - The Wall Street Journal
October is off to a rough start. Traders are wagering the volatility is just getting started.
They've been rushing into trades that would profit if the recent stock-market tumult persisted, or even worsened. Many traders have picked up stock-market insurance that would protect their portfolios if volatility exploded in coming weeks, a shift from the relentless embrace of the monthslong rally that has sent the S&P 500 up 19% this year.
Trading in call options tied to the VIX surged to one of the highest levels of the year Tuesday. Some of the most popular bets have been those tied to the gauge surging to as high as 45, 50 or even 55. It recently traded around 20.
/jlne.ws/3ZVQmUT
Ether ETFs See Zero Flows for Second Time as Bitcoin ETFs Post Biggest Inflows in 6 Days
Jamie Crawley - CoinDesk
Ether (ETH) exchange-traded funds (ETFs) in the U.S. saw zero flows on Monday for only the second time since their listing in July, according to data gathered by SoSoValue. Bitcoin (BTC) ETFs, meanwhile, enjoyed their highest inflows since Sept. 27, adding a net $235.2 million. Fidelity's product (FBTC) led the gains with $103.7 million while BlackRock's fund (IBIT) garnered $97.9 million. In contrast, the nine ether ETFs registered zero flows in either direction. The only other time this has occurred was Aug. 30.
/jlne.ws/480wth6
$300bn in ETFs affected by S&P indices reshuffle; Rebalance was prompted by concerns over the continued growth of tech stocks such as Nvidia
Brian Ponte - Financial Times
S&P Dow Jones Indices has tweaked the methodology for its 11 Select Sector indices tracked by $300bn in exchange traded funds in response to large market swings in the technology industry, the index provider has disclosed.
The rebalance was the result of concerns within S&P regarding the continued growth of certain technology stocks such as Apple, Microsoft and Nvidia, the company noted in a September 10 article on its website.
/jlne.ws/3YdbOmV
| | | | | | Exchanges | | | Euronext bolsters European derivatives offering with German, Irish and Portuguese single stock options; Expanded offering will give investors increased access to key assets in Europe through Euronext's single order book.
Wesley Bray - The Trade
Euronext has launched an expanded range of single stock options from Germany, Ireland and Portugal, strengthening its European derivatives offering. The firm is introducing 21 new German single stock options, completing its coverage of all DAX 40 index constituents, as well as six Irish and four Portuguese single stock options. These stock options mark the first that Euronext has listed on Irish stocks.
/jlne.ws/3XVYuSC
Precidian to List First ADRhedged Securities in the U.S. on Cboe, Providing Exposure to Individual International Companies with an Embedded Currency Hedge
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading securities and derivatives exchange network, announced the listing of new ADRhedged⢠securities (ADRH) on Cboe U.S. beginning today. The new ADRHs are sponsored by Precidian Investments, an industry leader in the creation of innovative financial products. To provide the currency hedge for each ADRH, Precidian has engaged CIBC, a leading North American financial institution who pioneered CDRs in Canada in 2021. There are now 65 CDRs listed on Cboe Canada with more than $50 billion CAD in trading volume since launch and $6 billion CAD in assets under management.
/jlne.ws/4gPOYJr
CBOE Global Head of ETP Listings on ADRhedged Securities
Bloomberg ETF IQTV Shows (Video)
Cboe Global Head of ETP Listings Rob Marrocco discusses Precidian listing ADRhedged Securities in the U.S. on Cboe. The security enables US investors to invest in international companies, but not the currency, says Rob Marrocco. He speaks with Katie Greifeld, Scarlet Fu and Eric Balchunas on "ETF IQ."
/jlne.ws/4eSVuNv
| | | | | | Regulation & Enforcement | | | It appears the FCA was listening to Piebe Teeboom and the FIA EPTA with their recommendations to improve the European capital markets. Now if we can just get the rest of the European regulators on board. JLN had recently interviewed Teeboom about the FIA EPTA's policy recommendations for the new EU political mandate until 2029, titled "Tide of Change: Enhancing Liquidity Provision to the European Economy." The Financial Times is reporting that the UK Financial Conduct Authority (FCA) is committed to reducing barriers for specialist trading firms to enhance liquidity in London's markets. CEO Nikhil Rathi highlighted that current capital rules, designed for large banks, often hinder smaller firms like market makers. He emphasized the need for tailored regulations that accommodate these firms, drawing attention to their successful transformation of Wall Street trading.
Rathi noted a significant shift towards non-bank traders dominating equity flows and called for a new regulatory mindset that moves beyond traditional principles, focusing on fostering competition and growth. The FCA aims to encourage investment in riskier assets and streamline capital-raising processes. Under pressure from the Labour government to support growth in the financial services sector, Rathi stated that regulation should prioritize proactive measures and positive outcomes rather than reactive responses to crises. ~JJL
FCA: 'Shift from reactive to proactive regulation needed'
Tara O'Connor - FT Adviser
The world of finance should be prepared to face volatility as a constant, according to the Financial Conduct Authority's CEO, Nikhil Rathi. He said capital markets and regulation have a vital role to play when it comes to facing constant volatility. Rathi said solutions to this volatility include regulation that is proactive rather than reactive and can help firms grow. Speaking at the FCA International Capital Markets Conference today (October 8), he said: "Our careers have been defined by some of the biggest crises the financial world has ever seen. But we've also seen how people have solved those crises. Or even prevented them. It's what I love about this job, and the financial system. How it self-corrects. How it innovates."
/jlne.ws/4dDdcDT
FCA mulls bespoke rules for non-retail traders; Watchdog boss says new rules could boost liquidity
Justin Cash - Financial News
The Financial Conduct Authority is looking at how to reduce the burden of regulation on non-retail trading firms by introducing bespoke rules. As new players continue to take equities trading business away from traditional bank operations in the US, the watchdog's chief executive Nikhil Rathi said that tailoring its rulebook for those who don't interact with retail clients could boost liquidity and competitiveness in the UK market.
/jlne.ws/4eBZVN6
| | | | | | Events | | | FIA announces 10 startups selected for 2024 Innovators Pavilion
FIA
FIA today announced the 10 startups chosen to exhibit in the 2024 Innovators Pavilion, FIA's annual showcase for fintech startups relevant to derivatives trading and clearing. The Pavilion happens during FIA's Futures and Options Expo, which brings together traders, brokers and other market professionals from a wide range of firms in the derivatives industry. The conference takes place 18-20 November in Chicago.
/jlne.ws/3XQ5a4s
The TRADE announces the Rising Stars of Trading and Execution 2024; To celebrate 10 years of the initiative, this year The TRADE will be holding a special celebratory evening at Plaisterers' Hall on 15 October.
Editors - The TRADE
The TRADE is delighted to announce the Rising Stars of Trading and Execution for 2024, in collaboration with Instinet - a celebration of up and coming talent on the buy-side. Now in its tenth year, the Rising Stars initiative recognises key buy-side individuals who go above and beyond the call of duty whether that be through day-to-day activities or through thought leadership on industry platforms. Previously recognised individuals have gone on to head up some of the largest and most successful desks across leading asset managers and hedge funds.
/jlne.ws/4dCmaRB
| | | | | | | | | 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.
© 2023 John J. Lothian & Company, Inc. All Rights Reserved. |
|
|
