| January 28, 2019 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | A $4 Trillion Scapegoat for Market Volatility: the Fed's Shrinking Portfolio
Nick Timiraos - WSJ (SUBSCRIPTION)
Some investors blame the stock market's volatility on the Federal Reserve shrinking its bond portfolio. But the critique puzzles Fed officials and some economists because there is little evidence of turmoil in the two markets where the central bank actively intervened: Treasurys and mortgage debt.
htps://on.wsj.com/2MASgCA
There Are Three New Ways to Bet on Chinese Commodity Markets
Bloomberg (SUBSCRIPTION)
Three new commodities options contracts are set to start trading in China on Monday as the world's biggest consumer of raw materials seeks to build confidence in its febrile markets.
The launch of corn, cotton and rubber contracts will double the amount of options listed across China's three major commodity exchanges. There's already trading in soybean meal, sugar and copper.
/bloom.bg/2MGUP6c
Powell on the Spot After Fed's Monetary Messages Whipsaw Market
Craig Torres and Rich Miller - Bloomberg (SUBSCRIPTION)
Federal Reserve Chairman Jerome Powell has some further explaining to do after the central bank's monetary messages whipsawed financial markets over the last month.
Powell holds a press conference at 2:30 p.m. on Wednesday in Washington following a two-day meeting of the Federal Open Market Committee. Investors expect the FOMC to keep interest rates on hold. Its policy statement will be scrutinized for hints that officials still expect to raise rates twice this year, as they forecast in December.
/bloom.bg/2MAXv57
Bridgewater, RenTech Make $13 Billion in a Grim Year for Hedge Funds
Nishant Kumar - Bloomberg (SUBSCRIPTION)
Ray Dalio's Bridgewater Associates and Jim Simons' Renaissance Technologies beat their rivals in a tough year for hedge funds in 2018, making a combined $13 billion for their investors.
/goo.gl/kccX4s
Deutsche Bank bosses mulled merger with BNP Paribas, Société Générale
Handelsblatt staff
While Berlin lawmakers try to lure Germany's largest bank into a tie-up with Commerzbank, it emerges that Deutsche sought partners further afield.
/goo.gl/vUvwAK
Goldman Cheers as Rand Heads for Best-Ever Start to a Year
Robert Brand - Bloomberg (SUBSCRIPTION)
The rand's flying start to 2019 may be just the beginning, according to Goldman Sachs Group Inc.
The South African currency is heading for its biggest January gain against the dollar since Bloomberg started compiling the data in 1999. And with expected volatility near an eight-month low, traders are discounting local stumbling blocks in coming months, including a budget speech, ratings review and election.
/bloom.bg/2MGEFtC
| | | | | | Exchanges and Clearing | | | FX Options Strike Listing Change
CME Group
Frequently Asked Questions:
What are the scheduled modification changes?
When will these changes go into effect?
Why is CME making these changes?
How is the new rule different than the old rule?
Do you have an example of how the strike listing rule will work?
Will the changes become immediate on all currently listed options?
Can I add a strike that is not currently listed by the exchange?
Was there an SER and CME Globex Notice connected to these changes?
bit.ly/2MB8ZWk
Derivatives to account for half of SGX's group revenue in 2019: analyst
Singapore Business Review
It's set to haul $444m in revenue as rattled investors continue to seek risk management solutions.
Market volatility and heightened demand for risk management solutions may further boost the Singapore Exchange's (SGX) derivatives business which is set to rack in $444m in revenue in 2019 and make up 50% of SGX's group revenue, according to a report by OCBC Investment Research (OIR).
bit.ly/2MGUf8w
Adjustment of Eurex's Contract Specifications
Eurex Exchange
The Management Board of Eurex Deutschland took the decision to adjust the Contract Specifications for Futures Contracts and Options Contracts at Eurex Deutschland (Contract Specifications) to reflect the respective changes of the Clearing Conditions of Eurex Clearing AG, as published in Eurex Clearing circulars 102/18, 112/18 and 001/19. In particular, these changes are as follows:
bit.ly/2FUlfkl
Nasdaq 'Ready to Compete' Against New Exchanges, Says Adena Friedman
Nasdaq MarketInsite
As a group of big banks and brokers look to create a new U.S. stock market, Nasdaq President and Chief Executive Officer Adena Friedman says the firm is ready for the competition.
The founders of the Members Exchange, or MEMX, are seeking to "increase competition, improve operational transparency, further reduce fixed costs and simplify the execution of equity trading in the U.S.," the group said in a statement on Jan. 7. Members Exchange founders include Bank of America Merrill Lynch, Charles Schwab, Citadel Securities, E*Trade, Fidelity Investments, Morgan Stanley, TD Ameritrade, UBS and Virtu Financial.
bit.ly/2MzVSor
UBS Equity Venue Stays in London as Brexit Pushes Rivals Out
Viren Vaghela - Bloomberg
UBS Group AG's equity trading venue is staying in London after Brexit, despite rivals accelerating plans to shift trading to elsewhere in Europe.
The Swiss bank's multilateral trading facility is "taking the calculated gamble'' that there will be a deal allowing European Union equities to be traded in London after the U.K.'s departure, according to Richard Semark, head of UBS MTF.
/bloom.bg/2MAYLFm
| | | | | | Moves | | | Industry Veteran Joins Cboe Market Data Team
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), one of the world's largest exchange holding companies, today announced the appointment of Kevin Maude to its Market Data Services team. Mr. Maude assumed the role of Director, Market Data Sales, earlier this month and is responsible for the expansion and distribution of Cboe's Market Data and Connectivity Services products throughout the U.S. Mr. Maude brings more than 20 years of experience in the financial services industry to the team. He reports to Drew Carey, Head of Market Data Sales at Cboe.
****WatersTechnology - Maude 'Boards' Cboe as Data Sales Director
| | | | | | Regulation & Enforcement | | | SEBI may overhaul margin management system for equity futures & options -
Palak Shah - The Hindu Business Times
Market regulator Securities EBI is likely to review the margin or risk management system currently obtaining in the equity derivative market, and may even go for a complete overhaul.
The regulator recently tightened the margin requirement for brokers anticipating higher volatility during Budget and the upcoming general elections. But brokers body, the Association of National Exchanges Members of India (ANMI), told SEBI that the tighter margin requirements were excessive and may lead to a virtual shutdown of various segments of trading activity.
bit.ly/2MEdlfl
| | | | | | Strategy | | | The VIX Moving Average to Watch Right Now
Todd Salamone - Schaeffer's Investment Research
On Friday, Jan. 18, the Cboe Volatility Index (VIX - 17.42) closed barely below 18.03 -- half its December closing high -- but it was short-lived. The market opened lower last week, sending the VIX not only back above key levels discussed two weeks ago, but also above 20.
bit.ly/2MGw8qA
| | | | | | Miscellaneous | | | $1.5 trillion U.S. tax cut has no major impact on business capex plans: survey
Reuters
The Trump administration's $1.5 trillion cut tax package appeared to have no major impact on businesses' capital investment or hiring plans, according to a survey released a year after the biggest overhaul of the U.S. tax code in more than 30 years.
The National Association of Business Economics' (NABE) quarterly business conditions poll published on Monday found that while some companies reported accelerating investments because of lower corporate taxes, 84 percent of respondents said they had not changed plans. That compares to 81 percent in the previous survey published in October.
/reut.rs/2MCXYDR
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