| July 24, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | On the subject of good deeds, Cboe Global Markets gave $100,000 to World Central Kitchen, a nonprofit focused on being first to the frontlines and providing meals to people recovering from crises, as part of its 50th anniversary celebration. This is the fourth installment of Cboe's $500,000 charitable giving campaign in honor of its 50th anniversary. World Central Kitchen is on the front lines of providing meals to people displaced in Ukraine and a charity I am supporting, and in honor of Cboe's donation and Thom Lant's heroic work bringing humanitarian aid to Ukraine, I made a donation to World Central Kitchen today. ~JJL
| | | | | | Lead Stories | | | US Economy Headed for Rollercoaster Inflation, Full Employment Recession
Jennifer Sor - Business Insider
The economy could be in for chaos, as the US risks rollercoaster inflation and an unusual "full employment recession," BlackRock warned.
Though inflation has eased significantly from its 41-year-high last summer, there are conflicting pressures in the economy that could potentially make prices volatile in the future, the asset manager said in a note on Monday. That's because consumers are shifting their spending from goods to services, which is driving goods deflation. But at the same time, the labor market remains tight, which is driving wage inflation as workers push for higher pay.
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Funds cover CBOT corn shorts but remain skeptical of price strength
Karen Braun - Reuters
Despite the U.S. government's latest prediction of sufficient global grain supplies over the next year, a dry and hot stretch for the U.S. Corn Belt and Russia's withdrawal from the Ukraine grain deal kept market volatility alive last week.
Although those factors caused Chicago corn and wheat futures to surge, speculators have held on to their bearish views thus far.
In the week ended July 18, money managers reduced their net short position in CBOT corn futures and options to 46,926 contracts from 63,052 a week earlier. Short covering was prominent in the move, but funds also removed gross longs, suggestive of a cautious rather than a bullish approach.
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AMC Stock Jumps After Shock Court Ruling. Meme Volatility Is Back.
Callum Keown - Barron's
Meme stock volatility may be back, at least for one of its poster childrenâ AMC Entertainment Holdings.
The stock (ticker: AMC) surged 26% early Monday after a judge blocked AMC's plan to convert its so-called APE shares into common stock.
At one point in pre-market trading Monday the stock was up 70%.
/jlne.ws/3Y8fuow
Bitcoin Traders Cautious Despite Spot ETF Optimism, Leverage Indicators Suggest
Markets Insider
BlackRock (BLK) filing for a spot bitcoin exchange-traded fund (ETF) last month brought renewed optimism into the crypto market, pushing bitcoin (BTC) and related investment vehicles higher.
Still, traders in the perpetual futures market tied to bitcoin remain risk averse, unwilling to take on high leverage.
/jlne.ws/3qaap26
Beware Collateral Damage from Explosive Derivative Prices
Jo Burnham, Risk and Margin SME - OpenGamma
If the failed rebellion by Russia's Wagner mercenary group taught us anything, it is that the war - which just surpassed 500 days in length - is far from over yet. This will have several lingering market implications, none of which are particularly pleasant. But financial institutions can take concrete steps to insulate themselves against a few of these - one such concern being surging margin costs. The Russian invasion of Ukraine has had a significant impact on the price of derivative contracts, with liquefied natural gas and wheat futures witnessing pronounced price volatility due to their close dependence on Russian energy and crops. As a direct result of this, margin costs related to these contracts have spiked dramatically over the last year or so. Margin on Dutch gas futures traded on Intercontinental Exchange (ICE), for instance, rose 38% on 9 March last year, following a 36% rise on 4 March - a doubling of margin in less than a week.
/jlne.ws/452rRol
Why the Fed Isn't Ready to Declare Victory on Inflation
Nick Timiraos - WSJ
Uncertainty over the path of inflation later this summer makes it hard to predict the Federal Reserve's next steps following a likely quarter-percentage point increase in interest rates this week.
Some Fed policy makers and economists are concerned that the easing in inflation will be temporary. They see inflation's slowdown as long overdue after the fading of pandemic-related shocks that pushed up rents and the prices of transportation and cars. And they worry underlying price pressures could persist, requiring the Fed to lift rates higher and hold them there for longer.
/jlne.ws/3O6cIeD
| | | | | | Exchanges | | | Cboe 2023 ESG Report
Cboe
Cboe Global Markets today released our fifth annual Environmental, Social and Governance (ESG) Report, which highlights our continued dedication to bettering our business, our communities and our planet. The report details the progress we have made in our ESG journey since the publication of our last report.
/jlne.ws/473MtOM
Cboe Global Markets Furthers 50th Anniversary Charitable Giving Commitment With $100,000 Donation to World Central Kitchen
Cboe Global Markets
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today announced a donation of $100,000 to World Central Kitchen, a nonprofit focused on being first to the frontlines and providing meals to people recovering from crises. The donation to World Central Kitchen is the fourth installment of Cboe's $500,000 charitable giving campaign in honor of its 50th anniversary.
/jlne.ws/44Z7J6g
Nasdaq Announces a Name Change of Forty-Nine Indexes Effective Monday, July 24th, 2023
Nasdaq
What you need to know: Effective Monday, July 24th, 2023 Nasdaq will change the name of the following Indexes on the Nasdaq Global Index Data ServiceSM (GIDS).
What are the indexes? The Nasdaq Global Disruptive Technology Benchmark Index is designed to track the performance of companies engaged in the following themes: Artificial Intelligence, Robotics, Automotive Innovation, Healthcare Innovation, New Energy & Environment, Internet of Things and Data & Computing Processing.
/jlne.ws/3Or7cob
CME Group Fines, Suspends Trader For Spoofing Futures Markets
Abdelaziz Fathi - Finance Feeds
CME Group Inc said on Monday it fined a futures trader and suspended him from the company's markets for entering orders he did not intend to execute, a practice known as spoofing. CME fined Joel Stone a total of $62,000 for rule violations and barred him from accessing its markets for nearly the rest of July. The complaint filing contained detailed allegations of spoof trades, in which Stone made large orders for futures transactions that he had no intention of completing. By placing large buy and sell orders that he never intended to fill, he sent a phony signal that tricked competitors and moved the market, allowing Stone to quickly cancel those orders and make real trades in the opposite direction, the complaint alleges.
/jlne.ws/44X7WH9
There May Be Volatility as Nasdaq 100 Index Rebalances
Emmanuel Ellerbee - Clayton County Register
An out-of-cycle rebalance in the Nasdaq 100 is set to add another layer of wrinkles to stock trading. The rebalance aims to reduce the dominance of technology megacaps and may see passive investors adjust their portfolios before the changes take effect on Monday. The revamp is expected to increase the presence of smaller members, with estimated two-way transactions of $60 billion.
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| | | | | | Regulation & Enforcement | | | SGX RegCo to review findings on Kitchen Culture Holding Limited and refer breaches to authorities
SGX
Singapore Exchange Regulation (SGX RegCo) refers to the Notices of Compliance ("NOCs") issued to Kitchen Culture Holding Limited (the "Company") on 14 July 2021 and 19 August 2021 and the Company's announcement dated 21 July 2023 on the findings of the special audit ("Special Audit Report") by the special auditor, Deloitte & Touche Enterprise Risk Services Pte Ltd ("Deloitte"). Deloitte reports the findings directly to SGX RegCo and the Company's sponsor, SAC Capital Private Limited.
/jlne.ws/3rMjEWF
| | | | | | Strategy | | | OIC 2023 Educational Series: Complex Spreads and Volatility Strategies (video)
OIC
Throughout the third quarter of 2023, The Options Industry Council is launching new webinars to help investors learn about the potential benefits and risks of strategies with exchange-listed options. Each month of the quarter will feature two brand new instructor-led live webinars, at no cost to registrants, covering a variety of options investing topics.
/jlne.ws/43eIP1d
Innovator debuts first 'Buffer' ETF with 100% downside protection
James Lord, CFA - ETF Strategy
Innovator Capital Management has unveiled the Innovator Equity Defined Protection ETF (TJUL US), a new type of defined outcome strategy that seeks to fully buffer against any losses in the S&P 500 over the fund's outcome period. Defined outcome investing refers to an investment strategy that shapes the potential outcomes of a reference asset or index to fit specific protection and return levels over a pre-determined time period, allowing for a more controlled investment experience. Generally, these strategies involve protecting against a set-level decline in the reference asset or index over a specific outcome period. In exchange for this protection, investors' upside potential is capped if the reference asset or index rises above a certain threshold. To achieve their defined outcome profiles, these ETFs typically invest in FLexible EXchange (FLEX) Options - customizable exchange-traded option contracts guaranteed for settlement by the Options Clearing Corporation - which are linked to the underlying reference asset or index.
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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
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