| February 03, 2023 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Zero-Day Options Fuel Latest Frenzy in the Wall Street Casino
Randall W. Forsyth - Barron's
What in the current zeitgeist will make us cringe in the future?
In an article entitled "Future Cringe," the New York Times recently queried a bunch of worthies from academe, media, fashion, the arts, and business about what will make them look back in anger, embarrassment, or disgust years from now. Various predictable but trivial items made the list, including Crocs, binge-watching streaming TV series, selfies, computer dating, and the incessant use of social media. The use of "cringe" as a noun, however, didn't seem to put anybody off, including the headline writer.
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Rogue Trader Bets $80 Million Fed Will Start Slashing Rates By Year End
Markets Insider
Earlier this week, we quoted Bloomberg trader and market commentator Vince Cignarella who said that "In More Than 40 Years Of Trading, Never Have I Witnessed A Market Fighting The Fed As Boldly As This One," and judging by Powell's remarkable verbal pivot yesterday, there was good reason for that: the market was spot on, and Powell appears to have conceded that inflation will run much hotter, as he refuses to push back against risk prices anymore.
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Options Trading Breaks Daily Record
Eric Wallerstein - WSJ
More than 68 million options contracts traded on Thursday, a daily record in Cboe data back to 2018.
/jlne.ws/3HWPsxQ
FTSE 100 Hits a Record as British Stocks Finally Stage Comeback
Joe Easton - Bloomberg
For the first time since 2018, Britain's blue-chip stocks have closed at an all-time high.
The FTSE 100 Index climbed 1% on Friday to a record of 7901.80 as the pound slumped after the US dollar rallied on stronger-than-expected jobs data. Having managed to avoid a selloff last year on the sterling's weakness, the FTSE 100 Index has joined a global equities rally in 2023 with a 6% gain, helping the British large-cap benchmark scale an all-time high.
/jlne.ws/3YlhBE3
Adani Stock Rout Erases Half of Group Value Since Hindenburg Report
Abhishek Vishnoi and Ashutosh Joshi - Bloomberg
The pressure on Gautam Adani's indebted conglomerate eased a little on Friday after two global rating firms stuck with their calls on its credit profile, capping a tumultuous seven days that saw the market value of his companies plunge by almost half since short-seller Hindenburg Research's scathing report.
/jlne.ws/3HtKkQt
Here's Why Stocks Could Stage a Rally As a Bullish Indicator Flashes
Phil Rosen - Business Insider
In case you missed it, the European Central Bank Thursday made a half-point interest rate hike, marking its fifth consecutive move as part of its inflation-fighting efforts.
EU policymakers plan to make the same sized hike at their meeting in March, similar to expectations for the US central bank to repeat yesterday's rate hike at its next meeting.
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Oil Volatility to Stay High, Boosting Traders' Profits, says McKinsey
Bob Henderson - WSJ
Oil price volatility has spiraled upwards in recent years. That turbulence is set to persist, fueling the profits of oil traders, according to a report by consulting group McKinsey this week.
/jlne.ws/3YljnFd
Crypto is back with $300bn frenzy
Scott Chipolina - Financial Times
With bankruptcies, job cuts and arrests packed into the first few weeks of the year, the crypto industry looked set to pick up right where it left off after a disastrous 2022. But it's not all doom and gloom for the tumultuous world of digital assets.
In just a month and change, roughly $300bn has been tacked on to the market value of crypto assets, sending it back above $1tn. Bitcoin has surged more than 40 per cent to roughly $23,000, rebounding from the drop to $16,000 per token, which marred the flagship cryptocurrency in the wake of FTX's bankruptcy last year.
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| | | | | | Exchanges | | | OCC Clears 923M Contracts in January 2023, Third Highest Month on Record
OCC
OCC, the world's largest equity derivatives clearing organization, announced today that year-to-date average daily volume through January 2023 was 46.2 million contracts, up 2.9 percent compared to year-to-date average daily volume through January 2022. Total volume was 923.2 million contracts, up 2.9 percent compared to January 2022 and the third highest month in OCC's history.
/jlne.ws/3wPBk37
2022 Annual ETD Volume Review
FIA
Trading volume in the global exchange-traded derivatives is on track to another record for the fourth year in a row. Join us for a discussion on trends in trading activity in the global futures and options markets. Our guest speaker will be Mike du Plessis, Global Head of Listed Derivatives at Liquidnet, a part of the TP ICAP Group. Using a full year of data from more than 80 exchanges, we will look at key trends such as the impact of the Libor transition on interest rate futures, shifts in intraday trading behavior, and the impact of the Ukraine war on energy markets.
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Cboe Global Markets Reports Results for Fourth Quarter 2022 and Full Year
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE) today reported financial results for the fourth quarter of 2022 and full year. "2022 was a year of substantial progress at Cboe as we continued to build out our global network, while delivering record financial results. Our accomplishments in 2022 have laid a strong foundation and, as we enter our 50th year of business, we are more optimistic than ever about the future," said Edward T. Tilly, Cboe Global Markets Chairman and Chief Executive Officer.
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CME Group Reports January 2023 Monthly Market Statistics
CME Group
CME Group, the world's leading derivatives marketplace, today reported its January 2023 market statistics, showing an average daily volume (ADV) of 21.7 million contracts during the month. Market statistics are available in greater detail at https://cmegroupinc.gcs-web.com/monthly-volume.
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CME Group Inc. Names Slate of Director Nominees
CME Group
CME Group Inc., the world's leading derivatives marketplace, today announced that its Board of Directors has nominated two new director candidates, Harold Ford Jr. and Kathryn Benesh, for election at its 2023 annual meeting to be held Thursday, May 4, 2023.
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| | | | | | Regulation & Enforcement | | | FBI Seeks Information on ION Hack That Disrupted Derivatives; US agency joins UK regulators in reviewing the cyberattack; ION told clients it won't be fully operational until Feb. 5
Katherine Doherty and Lydia Beyoud - Bloomberg
The Federal Bureau of Investigation is seeking information on the cyberattack on London-based ION Trading UK that's snarled global derivatives trading, according to people with knowledge of the matter. The FBI reached out to ION executives and is reviewing how the attack is affecting customers, the people said, asking not to be identified discussing a private matter. The US agency joins UK regulators who have started their own investigations.
/jlne.ws/3X9gyq4
CFTC Statement on ION and the Impact to the Derivatives Markets
CFTC
Staff of the Commodity Futures Trading Commission Divisions of Clearing and Risk, Market Participants, Data, and Market Oversight today released the following statement on the cyber-related incident at ION Cleared Derivatives (a subsidiary of ION Markets), a third-party service provider of cleared derivatives order management, order execution, trading, and trade processing:
/jlne.ws/3HVzofY
ISDA, AIMA, EFAMA and FIA warn against possible negative impact of EU's proposed EMIR amendments; While acknowledging potential benefits of the European Commission's latest proposals, the associations noted that the changes could make EU firms less competitive and have a negative impact on the derivatives market.
Wesley Bray - The Trade
In December, The European Commission (EC) proposed amendments to the European Market Infrastructure Regulation (EMIR) to make derivatives clearing in the EU more attractive, which has caused some debate. Among the various aims of the new proposals, the EC sought to encourage clearing in the EU by simplifying the procedures for central counterparties (CCPs) when launching new products and changing risk models by introducing a non-objection approval for certain changes that do not increase the risks for the CCP.
/jlne.ws/3Yju6Ab
| | | | | | Moves | | | HKEX Names Head Of Structured Products And Platform Business Development
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is today (Friday) pleased to announce Matthew Cheong has joined the Group as Managing Director, Head of Structured Products and Platform Business Development. In this new role, Mr Cheong will lead HKEX's structured products team and drive initiatives to develop the Group's platform business, supporting its ongoing focus on developing its equities and derivatives offering.
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| | | | | | Strategy | | | You Are Using Options Too Much
Dane Bowler - Seeking Alpha
In observing pointillism paintings up close, all one will see is a smattering of dots. Step a few meters back and the brilliant work of art comes into focus.
Finding the right answer can be a simple matter of perspective. I think people can benefit from the same broader perspective when deciding where to allocate capital.
/jlne.ws/3RsKhsN
Dispersion In The Markets
Cboe (Video)
In today's #Vol411, Dan Deming @djd551 on dispersion amongst the indices, heavy $VIX #options trading and the VIX futures term structure's march upwards.
/jlne.ws/3HWsEyn
| | | | | | Miscellaneous | | | Cboe's Johnny Pesenti Gives Back Through Renaissance Social Services
Cboe
Johnny Pesenti, Manager, Data and Analytics, was introduced to Renaissance Social Services about five years ago by Cboe's Andy Lowenthal, Senior Vice President, International Strategic Development, who served as Renaissance's president of the board of directors.
"Andy was one of the first people I met when I started at Cboe and it quickly became apparent how passionate he was about providing support to people experiencing homelessness in Chicago," Johnny says. "We both believe that homelessness stems from a lack of affordable housing, so I was eager to learn more about Renaissance and find a new a way to give back to my community."
/jlne.ws/3Y9oUiM
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| | | Jeff Bergstrom
Editor
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