| June 22, 2021 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Trading Technologies Launches Support for Cboe U.S. Options and Plans Day-One Connectivity to Cboe Europe Derivatives via the TT Platform
Trading Technologies International, Inc.
Trading Technologies International, Inc. (TT), a global provider of high-performance professional trading software, infrastructure and data solutions, today announced it now supports trading of U.S. equity, index and ETF options on the Cboe Options Exchange (C1) through the TT platform. In addition, TT will offer day-one connectivity to Cboe Europe Derivatives, a new Amsterdam-based futures and options market that is set to launch on September 6, 2021, subject to regulatory approvals.
/bit.ly/3gXbIc2
***** There is a reason TT is Trading Technologies International, Inc.~JJL
Equity and bond markets pause ahead of Fed chair's testimony
Naomi Rovnick and Hudson Lockett - Financial Times
Gyrations in global equity markets paused on Tuesday ahead of possible further guidance from Federal Reserve chair Jay Powell on a shift towards more hawkish monetary policy by the US central bank.
Wall Street's S&P 500 index dipped 0.1 per cent in early dealings, following sharp swings in recent days. The technology-heavy Nasdaq Composite gained 0.2 per cent, while the Stoxx Europe 600 was flat.
/on.ft.com/3wOyRV0
Confused by the Fed? So Are Markets
James Mackintosh - WSJ
The bond market is supposed to be the smart older cousin that keeps its head while the flighty stock market zooms about all over the place. Not so much in the past week.
Instead of a calm response to the Federal Reserve's slightly more hawkish tone, the 10-year yield first leapt by the most in months, then plunged. On Monday, it dropped during Asian trading hours to the lowest since February, before bouncing all the way back and then some.
/on.wsj.com/3xFlfeI
How the GameStop Hustle Worked
How hedge funds and brokers have manipulated the market.
Lucy Komisar - The American Prospect
In the aftermath of the GameStop run-up in January, retail investors found telltale signs of a common yet egregious trading fraud by major brokers and hedge funds.
I have written previously for the Prospect about the frenzy over GameStop (GME), the video game and electronics company. By now, you know the story. Millions of retail investors made the stock soar by over 1,000 percent in January 2021. This brought disaster upon a handful of hedge funds that had bet on GameStop's stock to drop. According to Markets Insider, one analyst estimated losses in February of roughly $19 billion. The hedge fund Melvin Capital reportedly closed out its position after taking a drubbing of 51 percent. Another fund, Maplelane, lost 40 percent.
/bit.ly/3qfe8as
Meme Stocks Drop as New GameStop CEO Takes the Reins
Connor Smith - Barron's
The two big meme stocks, GameStop and AMC Entertainment, dropped Monday in what turned out to be a strong day for the broader market. The losses coincided withâbut probably weren't tied toâan update that GameStop gave on its board shake-up.
New CEO Matthew Furlong became a director on Monday, GameStop said in a filing with the Securities and Exchange Commission. He replaces George Sherman both on the board and as CEO. Furlong's first day as chief executive was also on Monday.
/bit.ly/3zMvS1g
Oil bulls bet on restraint by OPEC+ and U.S. shale firms
John Kemp - Reuters
Hedge funds have rarely been more bullish about the outlook for oil in the last three years, even as prices have climbed to levels that have induced a strong response from producers in the past.
Hedge funds and other money managers purchased the equivalent of 26 million barrels in the six most important petroleum futures and options contracts in the week to June 15, according to exchange and regulatory data.
/reut.rs/3qjhA3L
India may open derivatives market for power sector next fiscal
PSU Connect
NEW DELHI: After prolonged delays, India may open a derivatives market for the power sector in the next financial year (FY 2022-23), allowing both power generators and consumers to enter into a futures contract and use it as a new hedging tool to mitigate price volatility and other associated risks.
The introduction of pure-play futures and options as products on the power trading platform would be a major reform initiative that would help in developing a robust and vibrant energy market.
/bit.ly/2Snipfw
| | | | | | Regulation & Enforcement | | | Could global regulators miss another Archegos whale? Spotting systemic risk from OTC swaps requires cross-border access to derivatives data
Sharon Thiruchelvam, Samuel Wilkes - Risk.net
When Archegos Capital Management collapsed, inflicting more than $10 billion in losses on prime brokers, the extent of its multi-billion-dollar portfolio of total return swaps (TRS) caught banks and regulators off-guard. And while the family office's demise may not have threatened financial stability, it did expose holes in the supervisory net that purports to capture global derivatives markets - and sounded a warning that a repeat episode could inflict much greater damage.
/bit.ly/2SXJiqq
| | | | | | Technology | | | A Big Jump to the Digital Age
ISDA
Derivatives market participants have been enthusiastic advocates for the use of technology, but various pockets of the business - including the documentation and definitions that form the backbone of this market - have proved trickier to shift from a primarily paper-based way of working. We've been striving to change that, and last week saw a major step in that journey with the launch of ISDA's first fully digital definitional booklet.
/bit.ly/3j5viFQ
| | | | | | Strategy | | | How to Prepare for Volatility Spikes If Fed Gets Hawkish: BTIG
James Faris - BusinessInsider
Surprisingly hawkish sentiment from the Federal Reserve last week upset markets and jolted volatility higher, leaving investors to grapple with how large of a threat rising inflation really poses.
The US central bank's apparent willingness to raise interest rates twice in 2023 in response to signs of hotter inflation and a strengthening economy largely caught Wall Street off guard. The Fed had previously forecast no rate hikes until 2024.
/bit.ly/3qjhjOh
What is the new norm in the stock market when it seems normal no longer exists?
Chris Vermeulen - Kitco Commentaries
Covid 19 and the havoc it has created in world economies is unlike anything we have seen before. Yet when we look at the stock market charts they continue to go up. We have bad jobs data - the markets respond and go up. We have poor CPI - the markets go up. The housing data misses - the markets go up. It is like bouncing off Teflon. What used to cause rifts in the markets now cause the opposite. In this upside-down world, this has become the norm.
/bit.ly/3qkd4lq
Stage Set For Volatility
Lance Roberts - Investing.com
A couple of weeks ago, in "Warning Signs A Correction Is Ahead," we said quite a few indicators set the stage for a pick-up in volatility. A review of the latest Commitment Of Traders (COT) report suggests the same.
"During a 'bullish advance,' investors become incredibly complacent. That 'complacency' leads to excessive speculative risk-taking. We see clear evidence of that activity in various 'risk-on' asset classes from Cryptocurrencies, to SPAC's, to 'Meme Stocks.'"
/bit.ly/3j2f5RO
| | | | | | Education | | | ISDAderivatiViews: A Big Jump To The Digital Age
Mondovisione
Derivatives market participants have been enthusiastic advocates for the use of technology, but various pockets of the business - including the documentation and definitions that form the backbone of this market - have proved trickier to shift from a primarily paper-based way of working. We've been striving to change that, and last week saw a major step in that journey with the launch of ISDA's first fully digital definitional booklet.
/bit.ly/3zISGPz
Explainer-'Death cross' chart formation adds another worry to bitcoin outlook
Reuters
For technical analysts watching bitcoin, an important and potentially bearish chart formation just happened in the cryptocurrency: A "death cross."
The formation could signal further losses ahead. Here are some details about what this is:
What is a death cross?
/reut.rs/3zYaFSa
| | | | | | Miscellaneous | | | Mysterious dogecoin whale sees holdings value plummet by 67% from peak, to $8 billion, amid crypto meltdown
Matthew Fox - Markets Insider
The mysterious dogecoin whale that owns more than 28% of the circulating supply of the cryptocurrency has seen the value of its holdings decline by 67% from its peak, to $8.2 billion on Monday.
The whale's address owns nearly 37 billion dogecoins, which were worth more than $24 billion in early May. But a far-reaching crypto meltdown has led to a steep decline in the value of the meme-inspired cryptocurrency in recent weeks.
/bit.ly/3gMTDPd
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