| May 06, 2024 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | On Friday just as we were sending out JLN, IEX sent out a press release announcing the hiring of Bryan Harkins as president and IEX Co-Founder Ronan Ryan moving to the role of group chief operating officer. Also, IEX promoted Florian Seifferer to group chief strategy officer.
This is an excellent hire by IEX. Bryan is a longtime innovator and leader in the equities world and was missed greatly in the space. Congratulations to Bryan and to IEX, also to Florian and Ronan on their new roles. ~JJL
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| | | | | | Lead Stories | | | Zero-Day Options Boom Will Only Grow Even As Some Investors Fear Disaster
Sam Potter and Lu Wang - Bloomberg
Two years after Wall Street's love affair with fast-twitch stock options began, Bloomberg's latest Markets Live Pulse survey suggests the unprecedented boom still has room to run - even as almost half of respondents fear an eventual blowup. With the notional value of zero-days-to-expiration contracts tied to the S&P 500 hitting roughly $862 billion in April, almost 90% of 300 MLIV Pulse respondents said they expect the growth to continue. The twist? They're about evenly split on whether it will grow steadily or end in calamity.
/jlne.ws/3WB3dtE
Hedge Funds' Options Bets Hand Green Investors a Path to Predicting Returns; Funds' options moves found to reveal future green stock moves; University academics base their findings on decade-long study
Sheryl Tian Tong Lee - Bloomberg
If you want to know how your green stock portfolio is likely to perform next quarter, you should take a look at hedge funds' options bets. That's according to a newly published academic paper which looks at a decade's worth of data from more than 1,900 hedge fund firms through 2022. A key finding of the study is that the buildup of hedge fund managers' put and call options on a given green equity can be used to "predict the stock's future returns," George Aragon, a professor at Arizona State University and a co-author of the paper, said in an interview.
/jlne.ws/3QA7v0F
Hedge Funds Turn Bullish on Consumer Stocks Ahead of Potential Rate Cuts, Goldman Says; Consumer discretionary was the most net bought last week; Short covering in the sector was the largest since December
Natalia Kniazhevich - Bloomberg
Hedge funds are reversing their bearish stance on consumer stocks as the latest economic data and comments from the Federal Reserve revive bets on interest rate cuts.
After four weeks of selling, hedge funds last week piled into consumer discretionary stocks, which saw the largest net buying during the week ended May 3, according to data compiled by Goldman Sachs Group Inc.'s prime brokerage desk. The move was driven by long buys as well as the largest short covering since December 2023.
/jlne.ws/3JOq6lR
Worsening Weather Is Igniting a $25 Billion Market; As companies and investors come to grips with meteorological risks, they're looking to a niche corner of Wall Street for protection.
Sam Potter - Bloomberg
Marty Malinow's mom never could get her head around what her son did for a living. To friends, she said he was "a stockbroker that does something with the weather." Malinow couldn't really object - he knew most people had no clue about financial contracts based on things like sunshine, rainfall and wind. That's beginning to change. Against a backdrop of rising climate volatility and social shifts, demand for weather derivatives is surging. Average trading volumes for listed products jumped more than 260% in 2023, according to the CME Group, with the number of outstanding contracts currently 48% higher than a year ago. And that publicly traded corner could make up as little as 10% of all activity, according to industry estimates; outstanding derivatives may be worth as much as $25 billion based on notional value.
/jlne.ws/3wvxAaj
Why Veteran Wall Street Investor Believes We're Still In A Bull Market
Benzinga - Via Markets Insider
Veteran Wall Street investor Ed Yardeni confidently stated that we are still in a bull market, underpinned by several economic indicators and market behaviors that suggest continued growth potential.
Yardeni's bullish stance is primarily supported by the prospect of the Federal Reserve adopting a less aggressive approach, alongside a positive earnings season that has outpaced expectations.
/jlne.ws/3UwiERn
| | | | | | Exchanges | | | Cboe Global Markets Reports Trading Volume for April 2024
Cboe Global Markets
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today reported April monthly trading volume statistics across its global business lines. The data sheet "Cboe Global Markets Monthly Volume & RPC/Net Revenue Capture Report" contains an overview of certain April trading statistics and market share by business segment, volume in select index products, and RPC/net capture, which is reported on a one-month lag, across business lines.
/jlne.ws/4bqxjV3
CME Group Reports Double-Digit Trading Volume Growth Across All Asset Classes
Omar Faridi - Crowdfund Insider
CME Group, the derivatives marketplace, reported its April 2024 market statistics set a new average daily volume (ADV) record of 26.5 million contracts for the month, up 33% from April 2023, with double-digit growth across all asset classes. Additionally, interest rate, equity index, foreign exchange and options products "set new April ADV records." Metals also reached "a new April ADV record, including monthly records for metals options, copper futures and options, and silver options. U.S. Treasury options also reached an all-time monthly ADV record."
/jlne.ws/3JMDtDh
CME Group Reports Record April ADV of 26.5 Million Contracts, with Double-Digit Growth Across All Asset Classes
CME Group
Highest-ever April ADV with 33% growth over April 2023; Record April ADV for interest rate, equity index, metals, FX and options products; Record monthly ADV for U.S. Treasury options. CME Group, the world's leading derivatives marketplace, today reported its April 2024 market statistics set a new average daily volume (ADV) record of 26.5 million contracts for the month, up 33% from April 2023, with double-digit growth across all asset classes.
/jlne.ws/3WoyaBn
April 2024 figures at Eurex
Eurex
Interest rate derivatives at Eurex grew by 90 percent year-on-year in April. Eurex Repo's GC Pooling market saw a 27 percent increase year-on-year in April. Notional outstanding in OTC Clearing increased by 3 percent compared to April 2023. Eurex, Europe's leading derivatives exchange, reports a 57 percent increase in traded contracts for April compared to the previous year, up from 115.7 million to 181.5 million contracts. Interest rate derivatives went up by 90 percent to 78.7 million contracts. Index derivatives grew 39 percent to 70.5 million traded contracts and Equity derivatives also grew by 36 percent compared to April 2023.
/jlne.ws/44toFCW
| | | | | | Regulation & Enforcement | | | South Korea finds illegal stock short sales by seven more banks
Reuters
South Korea's market watchdog said on Monday it had found breaches of short-selling rules by seven more banks in the domestic stock market as part of a full-scale investigation into trading practices at foreign investment banks. Last November, South Korea introduced a ban on short selling of stocks in the domestic market, after it found illegal trading by two foreign firms in October, and launched a special investigation to look into trading practices at other banks.
/jlne.ws/4dvXiMz
Robinhood Crypto gets Wells notice from US SEC
Reuters
Retail trading platform Robinhood Markets (HOOD.O), opens new tab said on Monday it received an enforcement action notice from the U.S. Securities and Exchange Commission (SEC) on May 4 over crypto tokens traded on its platform.
The company said it received a so-called "Wells notice," which the SEC issues when it is planning to bring enforcement action against them. Such notices do not necessarily mean the company has engaged in wrongdoing.
/jlne.ws/3wyYhuN
| | | | | | Moves | | | Bryan Harkins Joins IEX Co-Founders as Group President to Lead IEX's Commercial Growth; IEX Strengthens Organization Through New Leadership Appointments; Seasoned Exchange and Capital Markets Executive; IEX's Co-Founder, Ronan Ryan, Steps Into the Role of Group Chief Operating Officer; IEX Promotes Florian Seifferer to Group Chief Strategy Officer
?IEX Group, Inc.
IEX Group, Inc. (IEX) today announced the appointment of Bryan Harkins as its President, Ronan Ryan as its chief operating officer (COO), and Florian Seifferer as its chief strategy officer (CSO). Harkins is a great addition to the already strong IEX leadership team, with his extensive background in multi-asset exchange trading, Fintech, and capital markets. He brings exceptional experience in advancing product development and driving growth of trading platforms. Before joining IEX, Harkins held roles as the EVP, Head of Markets at Cboe Global Markets overseeing equities, derivatives, and foreign exchange trading, was the President of BIDS trading, the EVP and Head of Markets at BATS Global Markets, the Chief Operating Officer of Direct Edge, and the Chief Revenue Officer of Trumid.
/jlne.ws/3QzC7zw
| | | | | | Strategy | | | Preparing for November: 14% Election Bump for VIX October Futures
Matt Moran - Cboe
At the end of April, the settlement price for VIX futures expiring on October 16 was 19.87, more than 14% higher than the 17.35 price for VIX futures expiring on September 18, as seen in the chart below. The VIX futures expiring on October 16have the potential to be used as a hedge against the possibility of much higher volatility that may occur around the 2024 U.S. presidential election on November 5.
/jlne.ws/4b78Kwv
Behind the Ticker: Performance Trust Short Term Bond ETF (STBF)
Cboe (Video)
/jlne.ws/3JPXY1H
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