| April 21, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
Xuong Nguyen explains StoneX Group's history to John Lothian News and talks about how the firm is preparing for the next generation
JohnLothianNews.com
Xuong Nguyen, chief operating officer of StoneX Group Inc., talked with John Lothian News at the FIA International Futures Conference in Boca Raton, FL., about the company's history, its recent acquisition of Gain Capital and what's in the future.
Watch the video »
| | | | | | Lead Stories | | | Wall Street Is Getting a New Fear Gauge. Meet the One-Day VIX Amid 0DTE Boom
Lu Wang and Sam Potter - Bloomberg
About a month ago, as Wall Street stared down the barrel of an incipient banking crisis, the investment world's most-watched gauge of market volatility did a funny thing: It didn't do much.
Sure, the Cboe Volatility Index â a measure of expected swings in the S&P 500 Index also known as the VIX â climbed. But even at its intraday peak, it didn't come close to levels seen multiple times just a year ago.
/jlne.ws/3KSfUce
****JB: Also see MarketWatch's article, Stock-market investors get a new 'fear gauge' Monday. What you need to know.
Day Traders Lose $358,000 Per Day Gambling on Zero-Day Options
Lu Wang - Bloomberg
Day traders are paying a price for their newfound love affair with one of the hottest trades in the equity market.
Rushing to join the trading frenzy in options with ultra-short lifespans, known as 0DTE for zero-days to expiration, small-time investors find themselves struggling to make it work. A fresh study from researchers at the University of Muenster in Germany shows the crowd may have lost $358,000 a day since May 2022, when it became possible to trade expiring contracts every day.
/jlne.ws/41lEhGh
Wary Stock Traders Eye Options Deadline for End to Eerie Calm
Lu Wang - Bloomberg
Wall Street traders watching the stock market hang in amid a slew of disappointing economic data are bracing for Friday's options expiration as the catalyst that could finally shatter that sense of peace.
Wild days have been missing in the equity market as of late, keeping investors in suspense on whether bad news from corporate earnings or the economy could spark a fresh bout of turmoil. Trapped in a 2.4% band in April, the S&P 500 is poised for its calmest month since 2017. That quietude will be challenged when a deluge of options contracts hits maturity.
/jlne.ws/3Aqtizj
Stocks Cruise as 'Rates Are Running for the Lifeboats.' Is an Iceberg Ahead?
Randall W. Forsyth - Barron's
Long ago, Hank Williams sang, "We live in two different worlds, dear," and so it seems with the stock and bond markets. Like the old country tune, the two inhabit distinctly disparate economic environments, which might be hard to reconcile. On the equity side, everything seems copacetic, as implied by the subdued reading in the VIX, the so-called fear gauge, which measures the expected volatility of S&P 500 options over the next 30 days. But the MOVE, the analog for the Treasury market, is showing the opposite.
/jlne.ws/3mXCQyY
Why Are Markets So Calm? This Dynamic Helps Explain It
Gunjan Banerji - WSJ
It's been really, really quiet in the stock market this week.
The S&P 500 is down less than 0.1% in afternoon trading, continuing a string of small moves. Market volatility across a range of assets has ebbed.
/jlne.ws/3H8Sle7
Options Trading Today After 50 Years Of Growth
David Saito-Chung - Investor's Business Daily
Options trading in the U.S. hits a milestone this month as the Chicago Board Options Exchange (Cboe) marks its 50th anniversary on April 26.
/jlne.ws/40z9Fjk
| | | | | | Exchanges | | | Bitcoin Options Specialist Bitnomial Rolling out Block Trades
Michael Bodley - Blockworks
Bitcoin-focused derivatives exchange Bitnomial is rolling out block trading for the first time in an industry bid to capitalize on a long time traditional finance practice, as US institutional interest in bitcoin and ether options has booked a marked uptick. Open interest in the US and in other countries plummeted in the fourth quarter of 2022 as digital asset markets collapsed. But in the first quarter of this year, open interest, a metric that reflects the number of outstanding contracts on a given unsettled options contract, has recovered.
/jlne.ws/41PVWpy
Cboe tells Goldman climate ETF it must find more investors; The $8.5mn fund has breached listing rules by having too few beneficial owners for too long
David Isenberg - Financial Times
A Goldman Sachs environmental, social and governance-focused ETF may be delisted because it has not attracted enough investors, filings show. The $8.5mn Goldman Sachs ActiveBeta Paris-Aligned Climate US Large Cap Equity ETF (GPAL) has had fewer than 50 beneficial owners for more than 30 days and is therefore in violation of the Chicago Board Options Exchange BZX Exchange's listing standards, the firm disclosed in a filing earlier this month.
/jlne.ws/41Hv76A
Cboe Europe on the EU's Trilogue negotiation for the Mifir review
The Trade
At TradeTech Europe 2023, The TRADE caught up with Natan Tiefenbrun, president of Cboe Europe, about key topics being discussed at the EU's Trilogue negotiation, as well as the firm's analysis which found real-time pre-trade tape as the only credible option.
/jlne.ws/43THePW
LME announces new Interim Chairman of the Board; John Williamson appointed Interim Chairman of LME Board, effective 28 April; Brings extensive international, financial, governance and market experience to the LME at an important time in its development
London Metal Exchange
The London Metal Exchange (LME) is pleased to announce that John Williamson, currently LME Non-Executive Director, will become the LME's Interim Chairman, effective 28 April 2023. John will replace Gay Huey Evans CBE, who steps down from the Board at the end of April and whose departure was announced earlier this year.
/jlne.ws/3vimcfa
MIAX: FINRA Notice Of Filing To Amend The Codes Of Arbitration Procedure To Make Various Clarifying And Technical Changes To The Codes, Including In Response To Recommendations In The Report Of Independent Counsel Lowenstein Sandler LLP
MIAX
Please refer to the following Regulatory Circulars for information on a FINRA rule proposal to make various clarifying and technical changes to the Codes, including in response to recommendations in the report of independent counsel Lowenstein Sandler LLP.
/jlne.ws/3onWF2y
Coinbase granted license to operate in Bermuda, may launch derivatives exchange next week Jordan Finneseth - Kitco News
Following recent comments from Coinbase CEO Brian Armstrong that the largest U.S.-based cryptocurrency exchange may consider relocating if the regulatory environment in the country doesn't improve, the exchange announced on Wednesday that it has obtained a license to offer its services in Bermuda. The new operational jurisdiction comes as part of an 8-week international expansion drive - dubbed "Go Broad, Go Deep" - launched on March 8. The goal of the strategy is to roll out a number of new initiatives in countries across six continents: South America, Europe, Africa/Middle East, Asia, Australia, and North America.
/jlne.ws/41L7ES9
| | | | | | Strategy | | | These 6 Income Funds Use Options to Pump Up Their Yields
Andrew Bary - Barron's
A hot exchange-traded fund from JPMorgan Chase has reinvigorated the formerly sleepy category of options-writing equity funds.
The JPMorgan Equity Premium Income ETF (ticker: JEPI) has mushroomed to $24 billion since its inception nearly three years ago. It's now the largest actively managed equity ETF, after attracting $6.6 billion of inflows this year and almost $13 billion in 2022. The fund owns a group of about 100 blue-chip stocks, led by AbbVie (ABBV), Progressive (PGR), Mastercard (MA), and Hershey (HSY), and sells, or writes, call options against the S&P 500.
/jlne.ws/3KZE1pk
Call Condor Trade
Cboe (Video)
Dan Deming updates us on $VIX, #futures, next week, and a #callcondor. #vol411
/jlne.ws/3N4ptHV
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