| August 19, 2020 | | | | | Matt Raebel
Editor
John Lothian News | |
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| | | | Observations & Insight | | | Cboe Global Markets, Inc. said Wednesday that trading volume in its new mini VIX futures contract (ticker symbol: VXM), launched Sunday, August 9, totaled nearly 127,000 contracts during its first week, with some 23,000 contracts, or 18% of total volume during the week, traded during CFE's global extended trading hours. The contract logged more than 25,000 contracts on Monday, August 10, and reached a daily volume high for the week of more than 32,000 on Friday, August 14. Increased market volatility amid the pandemic and the upcoming U.S. presidential elections is amplifying demand for volatility management tools, a recent Cboe blog noted. In addition, investors are showing greater interest in using small-sized contracts with a smaller notional value, such as mini VIX futures, to trade derivatives. The mini VIX contract has the same contract terms as the standard VIX futures contract, but is 1/10th the size. More details are available here. ~SC
| | | | | | Lead Stories | | | A disputed US presidential election would fuel wild stock market volatility and possibly boost gold, UBS says
Ben Winck - Markets Insider
Stock market strategists have long advised customers on how to invest before a US presidential election. UBS is now preparing clients for a contested result.
President Donald Trump faces numerous headwinds in his bid for a second term. He's consistently polled below presumptive Democratic presidential nominee Joe Biden. The Trump administration's approval rating has steadily fallen as the coronavirus pandemic continues to roil the country. Even Trump's favorite bragging point â the US economy â has tanked and remains mired in recession.
/bit.ly/3iUfbrl
Backdrop for stocks 'remains bullish' as sector leadership broadens out, BofA says
Matthew Fox - Markets Insider
Stocks still have a ways to go even as the S&P 500 hit record highs on Tuesday, according to Bank of America.
In a technical analyst research note published on Tuesday, BofA argued that the "backdrop remains bullish" for stocks, given the recent golden cross in the S&P 500 and expanding sector leadership in the market.
/bit.ly/3iWnrqR
Wall Street stocks stall at record high
Sarah Provan and Hudson Lockett - Financial Times
US equities edged just above the record high recorded on Tuesday in a day of muted activity for global bourses.
The S&P 500 index advanced a mere 0.2 per cent but that was enough to take it to a record intraday high as it extended a recent three-day run to shuffle its way past an all-time closing high of 3,389.78. The US benchmark has overturned its year's losses to climb 5 per cent in 2020.
/on.ft.com/2EaG8Z0
| | | | | | Exchanges and Clearing | | | Cboe Global Markets Sees Strong Debut for New Mini VIX Futures
Cboe (press release)
Cboe Global Markets, Inc., one of the world's largest exchange holding companies, announced the successful launch of its Mini Cboe Volatility Index futures, which began trading on Cboe Futures Exchange (CFE) on Sunday, August 9 at 5:00 p.m. CT with the opening of CFE's global trading hours session.
/bit.ly/3hpA0Lb
Hong Kong bourse profits hit record on China 'homecoming' listings
Hudson Lockett and Thomas Hale - Financial Times
Profits at Hong Kong's stock exchange hit a record high in the first half as the prospect of forced delistings from US bourses encouraged Chinese tech groups to list billions of dollars of shares in the city.
But Hong Kong Exchanges & Clearing's stock fell following the company's results on Wednesday, as the revenue windfall from big-ticket share sales by internet businesses including NetEase and JD.com proved smaller than some investors had hoped.
/on.ft.com/3iUidvF
Update - MIAX Exchange Group - Options Markets - Delisting of Organovo Holdings, Inc. (ONVO)
MIAX Exchange Group
Organovo Holdings, Inc. (ONVO) will be de-listed from the MIAX Options Exchange, MIAX PEARL Options Exchange and MIAX Emerald Options Exchange effective on Wednesday, August 19, 2020.
/bit.ly/31b1AWD
ORGANOVO HOLDINGS, INC. - REVERSE SPLIT OPTION SYMBOL: ONVO NEW SYMBOL: ONVO1 DATE: 8/19/20
MIAX Exchange Group
Organovo Holdings, Inc. (ONVO) has announced a 1-for-20 reverse stock split. As a result of the reverse stock split, each ONVO Common Share will be converted into the right to receive 0.05 (New) Organovo Holdings, Inc. Common Shares. The reverse stock split will become effective before the market open on August 19, 2020.
/bit.ly/3aBWAxt
Financial Products News #2020 - 30 Nasdaq to Move Select Global Indexes to Global Holiday Schedule
NasdaqTrader.com
Effective prior to market open on Monday, August 24, 2020, nine (9) of the Nasdaq Global Indexes will change their holiday schedules from a US holiday schedule to a Global (GLO) holiday schedule. Under this new schedule, these Indexes will operate Monday through Friday without any holidays.
/bit.ly/3hd6dVM
| | | | | | Regulation & Enforcement | | | Amendments to the Exercise Price Rule of the Options on ThreeMonth Eurodollar and Three-Month SOFR Futures Contracts - Addition of 6.25 Basis Point Strike Price Intervals
CME Group
Effective Sunday, September 13, 2020, for trade date Monday, September 14, 2020, and pending all relevant CFTC regulatory review periods, Chicago Mercantile Exchange Inc. ("CME" or "Exchange") will amend the Exercise Price rules of the Options on Three-Month Eurodollar Futures (Rulebook Chapter 452A) and Options on Three-Month SOFR Futures contracts (Rulebook Chapter 460A) (the "Contracts") for trading on the CME trading floor, the CME Globex trading platform ("CME Globex") and for submission of clearing via CME ClearPort (collectively, the "Rule Amendments").
/bit.ly/3aBK0hG
MIAX PEARL Receives Approval to Operate Equities Exchange; Launch Date Confirmed for September 25, 2020
MIAX Exchange Group
Miami International Holdings, Inc. (MIH), the parent holding company of the MIAX, MIAX PEARL and MIAX Emerald (collectively, the MIAX Exchange Groupâ¢), today announced that MIAX PEARL's proposed rule filing to provide for the trading of equity securities under its exchange license has been approved by the U.S. Securities and Exchange Commission (SEC). Trading on MIAX PEARL Equities, MIH's first equities exchange, is expected to begin on September 25, 2020.
/bit.ly/2Q4B0Ix
| | | | | | Technology | | | Cappitech launches Singapore derivatives reporting service through DTCC link; Cappitech has extended its end point network with DTCC to support Monetary Authority of Singapore (MAS) OTC derivatives reporting.
Annabel Smith - The Trade
Cappitech has confirmed its launch of MAS OTC derivatives transaction reporting through a link with The Depository Trust & Clearing Corporation (DTCC).
/bit.ly/3kYrlBg
| | | | | | Miscellaneous | | | Gen Z and Millennials Really Are Trading More In the Covid Era
Sarah Ponczek - Bloomberg
For those imagining the commonplace 2020 day-trader as a young adult equipped with a smartphone and some cash, those suspicions may be right. A study shows the under-34 crowd has increased its trading during the pandemic at a rate far higher than that of the broader population.
More than half of Gen Z and Millennial investors said they've been trading more often since the Covid-19 pandemic began, compared with just a 30% increase for the general population, according to a quarterly survey conducted in early July and released by E*Trade Financial Corp. on Wednesday. At the same time, 46% of younger investors said they've traded derivatives more frequently, double the average rate.
/bloom.bg/2CHE2iP
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