| January 26, 2024 | | | |  | Jeff Bergstrom
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| | | | | | Lead Stories | | | Traders Bid Up Newest VIX Contract to Hedge Trump-Biden Risks
Elena Popina - Bloomberg
Wall Street is more anxious heading into the 2024 US presidential election than it was at this point ahead of the past two votes, judging by one early market indicator.
Traders have bid up Cboe VIX October futures, whose underlying S&P 500 options encompass the Nov. 5 vote, since the contract started trading earlier this week, according to data compiled by Bloomberg. The price is now 3.3 points higher than the contract expiring in September. That gap is wider than it was in late January during the 2016 and 2020 election cycles, the data show.
/jlne.ws/3ScGKPT
Ether options monthly trading volume hits all-time high in January
Brian McGleenon - The Block
Ether options trading volume across major cryptocurrency derivatives exchanges has reached an all-time high this January of $17.9 billion, with five days still left in the month, according to The Block's Data Dashboard.
/jlne.ws/3SbIYPD
Yuan Short Sellers Risk Getting Burned on China Stocks Rescue
Iris Ouyang - Bloomberg
The yuan looks set to become a key beneficiary of China's plan to stem a stock-market rout, as the equities rescue package would exacerbate a scarcity of the currency overseas, putting a squeeze on short-sellers. The offshore yuan will extend gains after posting its biggest advance in two weeks on Tuesday, according to Mizuho Bank and Malayan Banking Berhad. The banks expect offshore yuan liquidity to tighten with Beijing said to be considering 2 trillion yuan ($278 billion) of onshore stock purchases mainly from the overseas accounts of state-owned enterprises to stem a selloff.
/jlne.ws/3SAgWPm
Spot bitcoin ETFs spawn nascent derivatives ecosystem
Steve Johnson - Financial Times
The first derivative-based strategy piggybacking off US-listed bitcoin exchange traded funds has started trading, as experimentation in the fund industry accelerates at breakneck speed.
Roundhill Investments' Bitcoin Covered Call ETF (YBTC) aims to generate a yield from bitcoin and, like other covered call strategies such as JPMorgan's wildly popular Equity Premium Income ETF (JEPI), investors surrender some potential market gains in return.
/jlne.ws/3vTmT0L
'Cuts Are Coming': 7 Economists On December Inflation Data, What It Means For The Fed, Markets
Benzinga via Markets Insider
The Federal Reserve's preferred inflation measure, the Personal Consumption Expenditures price index, remained at its lowest level in nearly three years last month.
The headline PCE inflation remained anchored at 2.6% on an annual basis in December, the Bureau of Economic Analysis said Friday, aligning with market forecasts. Notably, core inflation, which excludes volatile components like energy and food, edged down to 2.9%, modestly falling below expectations and underscoring the ongoing disinflationary forces at play.
/jlne.ws/42c9U6v
Wall Street Unleashes Quants in Race for Private-Market Billions
Justina Lee - Bloomberg
Wall Street is turning to its biggest brains as the battle for supremacy in the world of private assets heats up. Quantitative analysts - more usually found in data-heavy parts of the financial ecosystem such as stocks or derivatives - are being deployed by firms like Ares Management Corp. and BlackRock Inc. as they race for an edge in private equity and credit. These opaque markets have grown fourfold over the past decade to command $10 trillion, according to data from alternative-asset consultancy Preqin. But systematic players typically haven't been heavily involved because private assets lack the reams of numbers where quants can hunt for profitable patterns and dislocations.
/jlne.ws/3SgWWQ6
| | | | | | Exchanges | | | BMO Launches New Structured Outcome ETF on Cboe Canada
BusinessWire
Cboe Canada is pleased to welcome return issuer, BMO Asset Management Inc. ("BMO"), for the launch of a new structured outcome ETF. Now trading on Cboe Canada under the symbol ZJAN, the BMO US Equity Buffer Hedged to CAD ETF - January seeks to replicate the income and returns of the S&P 500 index up to a cap, while buffering against losses.
/jlne.ws/47NTpP3
| | | | | | Regulation & Enforcement | | | ADM CEO's legacy clouded by accounting probe at commodity trader; Juan Luciano has led push into nutrition business which is under scrutiny
Susannah Savage - Financial Times
When Juan Luciano took the helm of Archer Daniels Midland in 2015, he joined a company still known in the popular mind for outsized clout in Washington, old adverts touting its role as "supermarket to the world" and grain silos from the Mississippi River to the Black Sea. mLuciano aimed to increase ADM's return on invested capital and to modernise and professionalise the old-school agribusiness. It appeared he had largely succeeded: he poured billions into building a higher-margin nutrition arm to offset the wild volatility of commodity markets, instilling ADM with greater discipline.
/jlne.ws/3Hzpn7a
| | | | | | Technology | | | Blue Ocean Technologies partners with MEMX to support ATS global trading platform; MEMX will serve as technology partner for the platform, with expected implementation of the technology by the end of this quarter.
Wesley Bray - The Trade
Blue Ocean Technologies (BOT) and Members Exchange (MEMX), have entered a technology partnership in which the latter's market-as-a-service trading system will operate the Blue Ocean ATS global trading platform. The technology is expected to be implemented by the end of Q1 2024. Licensing the same technology powering MEMX's US equity and options exchanges, users will be able to launch new market centres or upgrade their existing technology to MEMX's low latency platform.
/jlne.ws/3SaDpRz
| | | | | | Strategy | | | A Lot Of Action
Cboe (Video)
You might have noticed that the $VIX Index has been moving higher the last couple of days, even though the markets are holding on to gains and moving higher. What exactly does this indicate? Dan Deming @djd551 breaks it down in today's #Vol411.
/jlne.ws/42gRC3N
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