| January 30, 2024 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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Futures Discovery: Fundamentals of Margin Calls
JohnLothianNews.com
In episode 5 of Futures Discovery, we're peeling back the layers of the ever-important world of margin calls-a topic that can shape the flow of your futures trading journey. In this episode, we're not just scratching the surface; we're delving deep into the fundamentals of margin calls. It's not just about numbers on a screen; it's about deadlines, volatility, and potential lifelines.
Watch the video »
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Long Put, Buying Put Options - Term of the Week
JohnLothianNews.com
This video explores the basics of a long put option contract.
Watch the video »
| | | | | | Lead Stories | | | Banks Are Hawking US Recession Hedges Tied to Both Stocks, Bonds
Carly Wanna and Elena Popina - Bloomberg
Investors' lingering fears of recession have prompted Wall Street banks to hawk a complex hedge: exotic options that pay off if stocks fall and bond yields also drop. These options are relatively cheap now, in part, because correlations between equities and rates have been low. But investors should also consider them because US stock valuations look stretched by many measures, according to banks including JPMorgan Chase & Co. and Citigroup Inc. On top of that, questions about how soon the Federal Reserve will start cutting rates could result in wild market swings.
/jlne.ws/48Z9MKg
Traders Price In Trump Win by Piling Into Currency Hedges
Vassilis Karamanis and Alice Atkins - Bloomberg
Currency traders are increasingly hedging against any turmoil stirred by policies expected under a potential Donald Trump presidency.
In the options market, demand for insurance against swings in the euro over the coming year has been rising ever since Trump won the Republican nomination in Iowa earlier this month. At the same time, a barometer of market positioning and sentiment has jumped in favor of the dollar, the world's preferred safe-haven currency.
/jlne.ws/3HDLuJv
Crowded trades top worry list for hedge fund investors - BofA
Nell Mackenzie - Reuters
Concern that hedge fund portfolios contain too many of the same trades has shot up the worry list for global investors with hedge fund exposure, a Bank of America survey shows. Over a fifth of big investors, such as pension funds and insurance companies, pointed to crowded trades as a top concern, said the survey about 2023 year-end sentiment which was released on Monday and seen by Reuters on Tuesday.
/jlne.ws/4bdWURV
Investors yank over $100 billion from hedge funds in 2023 - Nasdaq eVestment
Nell Mackenzie - Reuters
Investors withdrew over $100 billion from hedge funds last year in a second consecutive year of outflows of this scale, according to a Nasdaq eVestment report on Tuesday, against a backdrop of volatile markets and changing investor preferences.
In December alone, investors removed roughly $26 billion from hedge funds, the largest monthly amount in 2023. This tipped the total outflows for last year to $103 billion, compared to $112 billion in 2022, said the report.
/jlne.ws/3Ulu9wp
| | | | | | Exchanges | | | ICE global and commodities derivatives open interest hits record high
Reuters
Intercontinental Exchange (ICE.N), opens new tab said on Monday that its global futures and options markets along with its derivatives in the commodities and energy segments logged all-time high open interest last week. ICE, which operates various stock and futures exchanges, said its global futures and options markets reached a record open interest of 87.2 million contracts on Jan. 25. Its commodities futures and options markets hit record open interest of 61.5 million contracts.
/jlne.ws/3SEt1mg
Abaxx Announces Closing of Strategic Financing in Abaxx Singapore
Abaxx
Abaxx Technologies Inc. (NEO:ABXX)(OTCQX:ABXXF) ("Abaxx Tech" or the "Company"), a financial software and market infrastructure company and majority shareholder of Abaxx Singapore Pte. Ltd. ("Abaxx Singapore"), the owner of Abaxx Commodity Exchange and Clearinghouse (individually, "Abaxx Exchange" and "Abaxx Clearing"), and producer of the SmarterMarkets⢠Podcast, is pleased to announce that Abaxx Singapore has closed its best efforts equity private placement as previously announced on January 3, 2024 (the "Offering") for gross proceeds of US$27,323,013. The Offering consisted of the issuance of 953,787 preferred shares (the "Preferred Shares") to strategic partners and 4,837,392 ordinary shares (the "Ordinary Shares") and 3,730,362 Ordinary Share purchase warrants (the "Warrants"). The investors for Preferred Shares are Abaxx's first group of globally recognized strategic participants in the market infrastructure and commodity ecosystems (CBOE III LLC "Cboe", TLW Trading LLC "TLW", Traxys Lithium Investments Limited "Traxys"), while Abaxx Tech (through an indirect wholly-owned subsidiary) is the investor for the Ordinary Shares and Warrants.
/jlne.ws/3HcoZLp
SPAN 2 Framework Energy Model Parameter Changes - Effective January 30, 2024
CME Group
As per normal review, CME Clearing has undertaken a review of the hypothetical stressed scenarios parameter used in the SPAN 2 Framework's natural gas pod. In particular, within the SPAN 2 framework, the hypothetical stressed scenarios parameter is incorporated in the stress value-at-risk sub-component of the market risk component. Following this review, CME Clearing has determined it will introduce hypothetical stressed scenarios parameter changes to align with current volatility across the term structure for natural gas. While the impact to production portfolios will vary depending upon the risk profile for each individual portfolio, CME Clearing expects a decrease in margin requirements for spreads against the front month natural gas contract and the total margin for futures and options products to decrease by under 1%.
/jlne.ws/3SgssOs
| | | | | | Regulation & Enforcement | | | Cboe exchange withdraws application to list Global X spot Bitcoin ETF
Turner Wright - CoinTelegraph
The Cboe BZX Exchange has withdrawn its application for a proposed rule change with the United States Securities and Exchange Commission, which could have allowed it to list shares of Global X's spot Bitcoin exchange-traded fund (ETF).
/jlne.ws/3SgSUHD
| | | | | | Strategy | | | News Week
Cboe (Video)
Watch today's #Vol411 with Tim Biggam @Delta_Desk to get news on this week, which happens to be a big one: many earnings reports are coming out (including $MSFT, $GOOG and $AMZN), the Fed meeting starts today, we'll be able to see how the $VIX Index is impacted and more.
/jlne.ws/3SEZ2Lk
| | | | | | Miscellaneous | | | Ticket prices for this year's Super Bowl might even make a billionaire like Taylor Swift blush
Jordan Valinsky - CNN
Ticket prices for this year's Super Bowl matchup between the Kansas City Chiefs and San Francisco 49ers might even make billionaire Taylor Swift blush. As of Monday, the February 11 game is the most expensive Super Bowl on record, according to TickPick. The average price is hovering around $9,800, which is 70% more expensive than last year's big game.
/jlne.ws/48RHscl
***** The big questions are, Will Taylor Swift make it to the game from a gig in Japan? and how is she going to swing the election to Joe Biden? Evidently that is the latest right-wing conspiracy theory.~JJL
Dr. Strangelove, or How I Learned to Love Markets; There's an awful lot of talk about 'World War III' at the moment. A look at markets could help de-escalate it.
John Authers - Bloomberg
World War III Is Drawing Near...Is Dr. Strangelove really back with us? The attack in Jordan that left three US soldiers dead, apparently perpetrated by Iran-backed forces, has ratcheted global fears to a new level. Retired Adm. James Stavridis's column for Bloomberg Opinion makes clear that a US response of some kind is now unavoidable. Former President Donald Trump has proclaimed on social media that "we are on the brink of World War III."
/jlne.ws/3vW645o
FIA Diversity and Inclusion Efforts in 2023
FIA
FIA strongly believes in the importance of diversity, equity and inclusion in the workplace and works hard to support and celebrate the diverse voices within our association and the derivatives industry at large.  Importantly, FIA ensures that the topic of DEI stays on the agenda across all our events and puts its words into action through mentorship initiatives and other opportunities.
/jlne.ws/3UkSbYH
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