| | | | | | | | November 15, 2024 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | CFTC Chairman Rostin Behnam is scheduled to deliver a keynote address and participate in a fireside chat at the Futures Industry Association's (FIA) Futures & Options Expo on Tuesday, November 19, 2024 from 9:30 a.m. to 10:00 a.m. CT at the Sheraton Grand Chicago Riverwalk.
Also, Commissioner Caroline D. Pham will participate in a panel discussion, "24/7 Trading: Are We Ready?" at the FIA Futures & Options Expo 2024 on Wednesday, November 20, at 2:00 p.m. CST.
When Don Wilson was named to the FIA Futures Hall of Fame, JLN's Sally Duros, who is focusing on our social media operations these days, shared the video from the MarketsWiki Education World of Opportunity event Wilson presented at in 2014. That video is now the most popular video on the MarketsWiki Education YouTube channel over the last 28 days.
A video by Wilson's DRW colleague Jeff Levoff (Levoff video) is the next most popular video in the last 28 days. Other popular videos in the top ten over the last 28 days are mostly of traders, including Michael Patak (TopStep Trading) (Patak video), [[Haim Bodek (Decimus Capital Markets (Bodek video), Henry Schwartz (TradeAlert) (Schwartz video), Tom Sosnoff (Tastylive) (Sosnoff video), Peter Borish (The Quad Group), (Borish video), Ray Cahnman (Transmarket Group) (Cahnman video), Ethan Kahn (Wolverine Trading, LLC) (Kahn video), Blair Hull (Hull Investments, LLC) (Hull video).
CME Group Chairman & CEO and new FIA Hall of Fame Inductee Terry Duffy appeared twice at the MarketsWiki Education World of Opportunity program, once when it was held at the Cboe and then at the Illinois Institute of Technology Stuart School of Business. You can see his videos HERE and HERE.
Our MarketsWiki Education YouTube channel is separate from our John Lothian News YouTube channel. The MarketsWiki Education channel has 937 subscribers and the John Lothian News channel is now up to 1018. Thank you to all who are subscribed to our YouTube channels.
David Prosperi has retired a second time. The first was from OCC when he took a package buyout offered, the second after helping to transition the KemperLesnik team to Res Publica Group. He is now wondering if there is a third act for this experienced, senior communications and public relations professional. If you need some wisdom and experience to help your PR and Comms operation, he would be a good choice. ~JJL
| | | | | | Lead Stories | | | Traders chase post-election stock gains in US options market
Saqib Iqbal Ahmed - Reuters
Options players are piling in to riskier bets across the U.S. stock market, supporting a rally that has come on the back of fading election worries and expectations of a Republican lock on power in Washington next year.
The bullish plays span a wide array of assets, from electric car maker Tesla to small-cap stocks and regional banks. Together, they have helped drive the S&P 500's gain of 3% since the Nov. 5 vote.
/jlne.ws/40OYKWt
CBOE defends VIX against BIS criticisms
Nick Dunbar - GT Global Trading
The BIS blames pre-market option quotes for August VIX spike, but CBOE defends its methodology.
The 5 August spike in the CBOE's VIX 'fear gauge' to 66%, a post-Covid record, was an artifact caused by the index's dependence on market maker quotes for pre-hours trading, according to a study by the Bank for International Settlements.
/jlne.ws/4eteu4B
Bitcoin Faces $11.8 Billion Options Expiry Soon, What's Next?
Bena Ilyas - Coinspeaker
Bitcoin is approaching a critical deadline, signaling the start of substantial shifts in the market. As the expiration of $11.8 billion in Bitcoin options nears on December 27, 2024, traders prepare for increased volatility. This expiration encompasses both call and put options, potentially influencing Bitcoin's price trajectory in the final days of 2024.
/jlne.ws/3AJiTme
A Near-$1 Trillion ETF Rush This Year Breaks Wall Street Records
Isabelle Lee - Bloomberg
This year was already a landmark one for exchange-traded funds, but as of Friday the ETF universe can add another superlative: biggest annual inflows on record. The insatiable appetite for the investor-friendly wrapper, an all-time high number of product launches and a relentless bull market fueled by Donald Trump's presidential victory have helped push total net inflows into US ETFs past $913 billion, according to data compiled by Bloomberg Intelligence. That beats 2021's record haul with still one more month to go.
/jlne.ws/3AQTgQo
Trump victory tipped to break logjam of exotic US crypto ETF filings; SEC has only allowed spot bitcoin and ether ETFs, while Europe has ETPs invested in about 30 cryptocurrencies
Steve Johnson - Financial Times
A flurry of exotic cryptocurrency exchange traded funds could be unleashed in the US in the wake of Donald Trump's election victory, industry figures believe, transforming the sector. Crypto ETF providers finally won their decade-long battle to launch "physically backed" bitcoin ETFs in the US in January, after the Securities and Exchange Commission, the regulator, lost a court case brought by digital assets pioneer Grayscale.
/jlne.ws/3O7TXYG
The undercover hedge funds financing activist short sellers; When Wall Street's self-styled financial detectives allege malfeasance, these silent partners stand to reap the benefits
Ortenca Aliaj and Harriet Agnew and Kaye Wiggins - Financial Times
In January 2023, short seller Hindenburg Research put out a report claiming that executives at one of India's largest conglomerates were manipulating the company's stock price. The Adani Group and its multibillionaire founder Gautam Adani strenuously deny the accusations, but the report instantly wiped off as much as $140bn from the conglomerate's market value and sent ripples through the country's establishment. It also catapulted the New York-based Hindenburg and its founder Nathan Anderson into Wall Street lore. Few saw it coming. But one that did was a hedge fund in New York almost 13,000 kilometres away from the Indian conglomerate's headquarters.
/jlne.ws/4fOXWVT
Global equity funds see biggest weekly inflows in over a decade
Reuters
Global equity funds saw the largest weekly net purchases in over a decade in the week to Nov. 13, driven by investor optimism that a decisive second-term mandate for Donald Trump would bolster corporate earnings and fuel U.S. economic growth.
Investors ploughed $49.3 billion into global equity funds during the week, the highest amount on a net basis since at least January 2014, according to LSEG Lipper data.
/jlne.ws/3Ct5H5w
| | | | | | Exchanges | | | SpiderRock Connect Launches a Modern and Powerful Trading System and an Options ATS, Designed to Bring Increased Automation, Competition, and Transparency to Global Institutional Options Trading
SpiderRock Technology Solutions
SpiderRock Technology Solutions, a premier provider of options trading technology, with a platform that handles approximately 250 billion dollars in notional annually, today unveils the latest version of its flagship platform, SpiderRock Connect. This global trading platform supporting U.S. and E.U. derivative instruments includes several major feature upgrades, runs in next-generation data centers that are proximity-located to exchange matching engines and provides access to an entirely new equity options alternative trading system called SpiderRock ATS. SpiderRock Connect also introduces MLink, a new web-socket API for sending and receiving live data messages, a variety of re-imagined web-based tools to simplify client workflows and access on- and off-screen liquidity from one application, and upgrades to its popular SRSE API.
/jlne.ws/4hMlPiG
Cboe's New Approach to Global Markets and Options for Retail Investors
Cboe video
/jlne.ws/48NVtJ3
Bitnomial Aims to Launch First US Perpetual Futures Venue
Shanny Basar - MarketsMedia
Bitnomial, a regulated digital asset derivatives exchange, is looking for regulatory approval to offer perpetual futures trading in the US as EDXM Global intends to launch a venue for contracts in Tokyo. On Bitnomial investors can trade physically settled crypto futures and options with leverage on an exchange that is regulated by the Commodity Futures Trading Commission. The firm also has a CTFC-regulated clearinghouse and brokerage subsidiaries as it was founded in 2014 to connect native digital asset hedgers with institutional traders.
/jlne.ws/48QRBa5
LME to Triple Clearing Members Capital Needs After Nickel Crisis; Minimum capital requirement would rise to $30 million; It's latest move in response to 2022 nickel short squeeze
Jack Farchy - Bloomberg
The London Metal Exchange's clearing house plans to triple capital requirements for members in the latest reform aimed at strengthening the market following the nickel short-squeeze crisis more than two years ago. LME Clear is proposing to raise the minimum net capital required from members to $30 million from $10 million, it said on Thursday - a move that's likely to raise the barriers to entry for any potential new players on the 147-year-old exchange.
/jlne.ws/3YOp2po
HKEX Collaborates With Hang Seng Indexes Company to Launch Hang Seng HKEX Stock Connect China Enterprises Index
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Friday) it is collaborating with leading index compiler Hang Seng Indexes Company Limited (HSIL) to jointly launch an index tracking the largest Chinese companies in the vibrant Stock Connect universe, supporting the development of Hong Kong's capital market product ecosystem. The Hang Seng HKEX Stock Connect China Enterprises Index (SCCEA Index) will be the first co-branded index between HKEX and HSIL when it launches on 21 November 2024.
/jlne.ws/4fsfcAr
Abaxx Provides Q3 2024 Corporate Update
Abaxx
Abaxx Technologies Inc. (CBOE CA:ABXX)(OTCQX:ABXXF) ("Abaxx" or the "Company"), a financial software and market infrastructure company, majority shareholder of Abaxx Singapore Pte Ltd. ("Abaxx Singapore"), the owner of Abaxx Commodity Exchange and Clearinghouse (individually, "Abaxx Exchange" and "Abaxx Clearing"), and producer of the SmarterMarkets⢠Podcast, provides an update on operational milestones and the continued execution of the Company's business strategy in the third quarter following the launch of Abaxx Commodity Exchange and Clearinghouse on June 28, 2024.
/jlne.ws/3UVb7MZ
| | | | | | Regulation & Enforcement | | | The CME Group Langer class action lawsuit with its members that has dragged on for 10 years finally has a court date, with "NO EXTENSIONS" possible, according to the order setting the date for July 7, 2025. The order also says that if the judge in the case is not available, the case will be randomly assigned to another judge in the Cook County Law Division.
Jamie Dimon says bankers are 'dancing in the street' because they expect Trump to cut regulation
Theron Mohamed - Business Insider
Jamie Dimon says Wall Street is whooping with joy at the prospect of Donald Trump tearing up regulations and revitalizing the banking industry in his second term.
The JPMorgan Chase CEO told the APEC CEO Summit in Lima, Peru, on Thursday that regardless of whom they voted for, "a lot of bankers, they're, like, dancing in the street because they've had successive years and years of regulations, a lot of which stymied credit."
/jlne.ws/3Cwlel0
Trump transition team considers current, former CFTC officials for agency chair
Hannah Lang, Michelle Price and Chris Prentice - Reuters
Officials on President-elect Donald Trump's transition team are considering current and former Commodity Futures Trading Commission officials for chair of the agency, according to four people with knowledge of the matter.
While the derivatives market regulator has traditionally been seen as a junior player in financial policy, it is likely to play a more prominent role as Trump's Republican administration starts to overhaul cryptocurrency regulations next year.
/jlne.ws/3YO7aLf
| | | | | | Strategy | | | Can you short crypto? A guide to shorting bitcoin and other cryptocurrencies
Tessa Campbell and Sam Becker - Business Insider
There are a few ways to short crypto, if you have the appetite and capacity for risk.
While short-selling is most commonly associated with the stock market, you can also short cryptocurrencies like Bitcoin and Ethereum using the best cryptocurrency exchanges. Cryptocurrencies are extremely volatile assets, offering the potential for large gains or losses.
The process of shorting cryptocurrencies is similar to the one you would use for shorting stocks or other assets. In traditional investing, you aim to buy low and sell high. Shorting is when you sell high and then buy it back lower.
/jlne.ws/3YTYSBq
One strategist lifts recession probability to 75% after Trump's win and recommends how to position for it; The benefit from tax cuts may be outweighed by the damage done by tariffs
Jamie Chisholm - MarketWatch
The post-election rally looks to be running out of steam. The S&P 500 has quickly relinquished the 6,000 level as inflation angst stirs again. Treasury yields sit just shy of four-month highs and the Federal Reserve now says it's in no hurry to cut interest rates.
Investors are right to be cautious, according to Peter Berezin, chief global strategist at BCA Research. He's just raised the probability of a U.S. recession in the next 12 months to 75% in response to Donald Trump's victory at the polls.
/jlne.ws/4eAkN6H
Bearish Tone
Cboe (Video)
/jlne.ws/3CyRSCM
| | | | | | Miscellaneous | | | Almost All Year-End Bonuses to Rise
Traders Magazine
Projections: Traditional asset management boosted by market appreciation and active ETF inflows. Hedge funds rise on inflows and strong performance. Investment banking higher led by equities trading and debt underwriting. Small to mid-sized illiquid alternatives flat to up modestly while largest funds up more despite fundraising challenges. Geopolitical issues largest risk variable into year-end.
/jlne.ws/3UTHqf7
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| | | | 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
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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.
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