| March 09, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
Doug Engmann - Part Two - Open Outcry Traders History Project - John Lothian News
JohnLothianNews.com
When Doug Engmann, chairman of Sage Brokerage Holdings, chose to expand his business to other exchanges, it was the late Jack Wing, Chairman Emeritus of Chicago Corporation, who helped him make the decision.
Sage, unlike other clearing firms at the time, Engmann said, offered both real-time clearing and real-time risk management that allowed clients to easily check their positions despite the West Coast time zone. Wing â then Chicago Corporation CEO â convinced Engmann "that Sage would have success on the Cboe." Employing real-time strategies to check positions gave Sage an advantage. "None of the other clear firms could do that, and we were still doing that when we were at the Cboe. It helped grow our business significantly again," according to Engmann.
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| | | | | | Lead Stories | | | U.S. Probes Options Trade That Gained on Microsoft-Activision Deal; Entertainment-industry titans Barry Diller and David Geffen made purchases just days before the merger was announced
Dave Michaels, Jeffrey A. Trachtenberg - WSJ
Federal prosecutors and securities regulators are investigating large bets that Barry Diller, Alexander von Furstenberg and David Geffen made on Activision Blizzard Inc. shares in January, days before the videogame maker agreed to be acquired by Microsoft Corp. MSFT 1.87% , according to people familiar with the matter.
/jlne.ws/3hUcFTC
Volatility Gauge Flashes Bullish S&P 500 Signal With a Key Rider
Akshay Chinchalkar - Bloomberg
A pattern traced by the S&P 500 index's volatility gauge is vindicating Wednesday's dip-buyers.
The pattern stems from the futures curve for the Cboe Volatility Index, a gauge of implied equity swings for the U.S. benchmark derived from options trading.
/jlne.ws/3hRyaV0
Who Is 'Big Shot,' China's Nickel-Trading Tycoon? 7 Things to Know.
Kari McMahon - Business Insider
Traders and investors have eagerly watched and debated for years whether bitcoin will cross the $100,000 mark.
What they didn't expect was to wake up on Tuesday morning and find an old-school commodity beating bitcoin to it.
/jlne.ws/3pTEa41
Nickel Trading Halted at LME Until Friday After Wild Price Spike
Shalini Nagarajan - Business Insider
The London Metal Exchange doesn't expect to resume nickel trading until at least Friday in response to the turmoil in the market, after prices rose above $100,000 for the first time Tuesday in the largest move ever on the exchange.
The 145-year-old global center of metals trading said all trades of physically settled nickel contracts executed on or after midnight on 8 March on trading platforms such as the "LMEselect" will be canceled.
/jlne.ws/34tPe0l
Wheat Prices Plunge in Chicago With Global Stockpiles Rising
Allison Nicole Smith, Megan Durisin, and Kim Chipman - Bloomberg
Wheat markets remained locked limit down after a key U.S. report forecast bigger ending stockpiles even as the Ukraine war disrupts supplies out of the key Black Sea region.
Overall impacts from the war on global grain supplies were relatively minimal in the U.S. Department of Agriculture report. World wheat ending stocks were raised slightly, thanks to a bigger Australian crop. This may speak to relatively muted market reaction, with wheat unmoved and corn back within its pre-report trading range.
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$200 crude? 'Anything could happen' to oil prices as market grapples with Russia sanctions, says top commodity trader
William Watts - MarketWatch
Russia's invasion of Ukraine has triggered a global commodity market shock. And there may still be significant upside for crude oil, already trading near 14-year highs well north of $100 a barrel, as the U.S. and its allies reluctantly begin to target Russian energy supplies, according to one of the world's top commodity traders.
/jlne.ws/3sZ7R5P
Stocks Have Gotten Cheaper. Why They Could Get Cheaper Still.
Jacob Sonenshine - Barron's
Stocks have gotten a whole lot cheaper during this year's correction. They could get even cheaper in the coming months.
The S&P 500 stock index has tumbled into correction territory in recent days, down more than 10% from its high. Estimates for corporate earnings are still rising. It has been a declining multiple on those earnings that has caused the wreckage. The aggregate market value on the S&P 500 is about 18 times the aggregate expected 2022 earnings per share for companies on the index, down from 21 times earlier this year.
/jlne.ws/3HZl8PM
'Tech wreck' looks more like another dotcom bubble bursting
Robin Wigglesworth - Financial Times
At what point does the slump in US technology stocks stop being dismissed as a mere "tech wreck" primarily centred on the most speculative companies and become considered a fully-fledged dotcom crash 2.0?
The combination of increasingly hawkish central banks and Russia's invasion of Ukraine has been toxic for equity markets this year. The MSCI All-Country World index is now down 12 per cent in 2022. However, as is often the case, headline indices miss a more fascinating story underneath.
/jlne.ws/3649zd8
Aluminium, others spiral lower as investors flee after nickel crisis
Eric Onstad - Reuters
Base metals slumped on Wednesday, including aluminium despite continued worries about Russian supply, as cautious investors slashed positions in the wake of a halt in nickel trading.
The London Metal Exchange intervened on Tuesday to calm the nickel market after prices rocketed in a matter of hours to records of over $100,000 a tonne.
/jlne.ws/3J2kvqi
Retail Investors Keep Buying the Dip
Gunjan Banerji - WSJ
Retail investors haven't been deterred by the market volatility.
They have kept piling into the stock market, buying around $7.1 billion worth of U.S. securities over the past five days, according to data provider Vanda Research.
/jlne.ws/3HXrCyO
| | | | | | Exchanges | | | Cboe Global Markets Announces Senior Leadership Changes; Promotion of David Howson to President
Cboe Global Markets, Inc.
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced changes to its senior management team under Chief Executive Officer Ed Tilly that reflect the company's global expansion in recent years and position it for its next phase of growth. These changes include the appointment of David Howson to the role of President, effective May 12, 2022.
/jlne.ws/363kfbE
FIA announces 2022 Hall of Fame inductees
FIA
FIA today announced the induction of 10Â new members into the FIA Hall of Fame. This year's class joins 165 other honorees in the Hall of Fame, which was established in 2005 on FIA's 50th anniversary. The new members will be honored at an awards ceremony during FIA's annual International Futures Industry Conference in Boca Raton, Fla.
Walt Lukken, president and CEO of FIA said: "We established the FIA Hall of Fame to recognize the people who have made exceptional contributions to the growth and development of the futures, options and listed derivatives industry. This year's inductees represent business leaders, advocates, policymakers, and visionaries who have provided the leadership and support necessary to keep our industry growing. We are grateful for their service and honored to present them with this recognition."
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February 2022 figures at Eurex
Deutsche Börse Group
Growth across OTC clearing, derivatives trading and repo at Eurex in February
Notional outstanding volumes in OTC Clearing grew strongly in February, climbing 30 percent overall compared to the same month last year - from 19,903 billion EUR to 25,933 billion EUR - with Interest Rate Swaps and Overnight Index Swaps posting growth of 39 percent and 162 percent, respectively. Average daily cleared volumes also grew by 10 percent overall, with Interest Rate Swaps (up 69 percent) and Overnight Index Swaps (up 148 percent) again beating the overall growth figure.
/bit.ly/3KqOHvq
FEX ESPO Asia Crude (Argus) Products
FEX
The Board of Directors of FEX Global have today determined to indefinitely suspend trading for all futures and options products referencing the ESPO Asian Crude (Argus) Benchmark.
/bit.ly/3hSdfBq
| | | | | | Technology | | | Matrix Executions Closes Record 2021 In Options Markets; Prepares for Another Record Year Powered by Devoted Client Service; Surging options trading interest, key hires, client acquisitions, and technology enhancements lead to 66% increase in market share
Matrix Executions, LLC
Matrix Executions, LLC ("Matrix"), a broker-dealer specializing in trading workflow automation for options markets, today announced another year of growth, building on the strong foundation of 2020's accomplishments. In 2021, Matrix focused on expanding the capabilities of its best-of-breed customizable smart algo rack, catering to the discrete needs of buy- and sell-side customers during a period of heightened interest in the use of listed options.
/jlne.ws/3tMf88h
| | | | | | Strategy | | | How to Find the Best Stocks for Options Trading
Rocky White - Schaeffer's Investment Research
Our focus at Schaeffer's is options trading. Even though an options contract's value is based off of the underlying stock's price, a skilled stock picker is not always a profitable options trader.
The main difference is that options have expiration dates. An options trader, therefore, not only has to be right on the direction, but they must also nail the timing. Strike prices and implied volatilities are two other factors an options trader must consider that stock traders don't deal with.
/jlne.ws/3sWPyy5
| | | | | | Miscellaneous | | | Volatility Is the Price of a Safer Banking System; Many of the risks once held by banks have been transferred to less regulated and more opaque corners of the markets.
Robert Burgess - Bloomberg
Few words strike fear in the hearts of investors like "volatility." It's a euphemism for markets that have somehow gotten out of control. And right now, it seems as if all markets â stocks, bonds, commodities, currencies â are anything but under control. "The volatility of everything is spiking," Jason Goepfert, president of Sundial Capital Research Inc., wrote in a report on Monday. "That's an incredible bout of cross-asset concern that we've rarely seen in the past 30 years."
/jlne.ws/3IZ1bKi
Mainstream Hedge Funds Pour Billions of Dollars Into Crypto
Gregory Zuckerman - WSJ
Some of the biggest names in the hedge-fund world are betting on crypto.
Firms founded by veterans including Alan Howard, co-founder of Brevan Howard Asset Management LLP, and Paul Tudor Jones, the billionaire who runs Tudor Investment Corp., are expanding their crypto trading, according to people familiar with the situation.
/jlne.ws/3KqpocI
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