| September 17, 2024 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | Vermiculus has launched VeriTrade, its next-generation trading platform designed for ultra-low latency and high performance, the firm announced today. Built on a microservice architecture, it offers scalability, 24/7 operations, and seamless adaptability to market demands and regulatory changes, Vermiculus says. The system supports on-premise and cloud deployments, and handles all asset classes with deterministic order matching in single-digit microseconds, providing a significant edge for high-frequency traders. ~JJL
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IEX to Expand into Options
Shanny Basar - MarketsMedia
IEX Group believes that its record of protecting market participants from adverse selection and maximizing best execution in equities will be an advantage when it launches an options exchange, subject to regulatory approval. Bryan Harkins, group president of IEX, told Markets Media: "IEX spent the last decade innovating to build technology that protects market participants from adverse selection and maximizes best execution, and this will be the foundation for our entry into options."
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****** I just keep thinking who will be next?~JJL
| | | | | | Lead Stories | | | Bets on wild stock-market swings boom as traders face most uncertain Fed rate decision in recent memory; An options strategy that would pay off if stocks see a sharp move in either direction is pricing in the biggest Fed-day move since March 2023
Joseph Adinolfi - MarketWatch
Some options traders are leaving nothing to chance ahead of Wednesday's Federal Reserve policy meeting.
The price of a strategy that would pay off if stocks see a sharp swing in either direction on "Fed day" has risen to its highest level since the run-up to the central bank's March 2023 meeting. Back then, investors were on tenterhooks following the collapse of Silicon Valley Bank.
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Hedge fund exposure peaked around 'epicentre' of August volatility - BIS
Gregory Rosenvinge - FOW
The hedge fund sector had become "increasingly exposed" to the "epicentre" of market turbulence in early August, according to the latest quarterly review from the Bank for International Settlements (BIS).
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An Endowment ETF Plans to Ride Wall Street's Private-Asset Craze; Issuers are looking to launch ETFs with private-asset exposure; It's the beginning of a new industry frontier: BI's Psarofagis
Vildana Hajric - Bloomberg
An ETF issuer, best known for riding thematic trades, is seeking to launch a new diversified investment strategy that channels the playbook of university endowments - including bets on the booming world of private markets. The Tema Endowment ETF is set to put about 50% of its holdings toward equities or derivatives, 30% to fixed income and 20% to "other securities," potentially including allocations to private funds, interval funds or business-development companies, according to a filing with the US Securities and Exchange Commission.
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Oil Consumers Hedged in Droves as Prices Fell Below $70 a Barrel; Swap dealer long positions soared as futures prices slumped
Alex Longley - Bloomberg
Oil consumers posted one of the largest hedging additions on record when prices briefly fell below $70 a barrel last week. The number of long contracts held by swap dealers on global benchmark Brent jumped by almost 50,000 lots last week, the most since March 2023 and the third-largest increase on record. For Europe's diesel benchmark, swap dealer longs were the highest since 2020. Swap dealer positions are often seen as a proxy for the hedges of industrial consumers like airlines and shipping companies, as they show where banks and other dealers lay off the risk they take on in over-the-counter trades.
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The S&P 500 Bounced Back. Here's What Can Keep Driving Gains.
Teresa Rivas - Barron's
The market has almost recovered from its early September shock, yet many worries remain-leaving investors to wonder what, if anything, can move it higher.
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Oil prices finish higher despite weak China data and gear up for a week of 'amplified' volatility; U.S. crude prices end above $70 for first time in nearly two weeks
Myra P. Saefong and William Watts - MarketWatch
Oil futures finished higher on Monday as traders shook off another round of lackluster data from China to focus on upcoming decisions by global central banks during a week that's likely to see "amplified" volatility.
U.S. oil prices settled back above $70 a barrel for the first time in nearly two weeks, with traders awaiting a decision due Wednesday from the Federal Reserve that's expected to center on how much it will cut its key interest rate.
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| | | | | | Exchanges | | | DBS bank to launch crypto options, structured products
Ledger Insights
In Q4 of this year DBS bank plans to offer over the counter (OTC) cryptocurrency option trading and structured notes. This will only be available to certain institutions and high net worth clients.
Based on the descriptions, it will support options settled in cash and others through delivery of the underlying cryptocurrency, with only Bitcoin and Ethereum supported.
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Euronext acquires leading research and market data benchmarking provider Substantive Research
Euronext
Euronext today announces that it has acquired 100% of Substantive Research, an industry-leading pioneer providing in-depth transparency on product and pricing comparison for investment research spend, market data and investment research content. Founded in 2015 and headquartered in London, Substantive Research provides research and market data benchmarking to a growing base of over 100 global clients, across Europe and North America, including asset managers, hedge funds, wealth managers, sell-side institutions and private markets. Substantive Research provides valuable insights into research pricing and spending, benchmarks of market data providers, and automated delivery of user-customised research content.
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Eurex Clearing AG participates in Project Agora
Eurex
Project Agora, launched by the Bank for International Settlements (BIS), a group of leading central banks, and the Institute of International Finance (IIF), will proceed to the next phase with more than 40 private sector financial firms in their exploration of how tokenization can enhance wholesale cross-border payments.
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Longtime Servicing Client PNC Expands Use of ICE Data and Analytics to Further Benefit From End-to-End, Integrated Technology Ecosystem
Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of technology and data, today announced that PNC has expanded its use of ICE's data and analytics solutions as part of their renewal of the MSP loan servicing system . ICE's proprietary mortgage data sets and advanced analytic models help companies adapt to changing market conditions and evaluate and mitigate portfolio risk. "Today's mortgage market is more challenging and nuanced than we've seen in decades," said Tim Bowler, President of ICE Mortgage Technology. "As PNC works to maximize its technology investment, they are also realizing the value of ICE's trusted valuation solutions, mortgage performance data, and prepayment and default models to help manage risk and uncover opportunities."
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MIAX Supports Autism Awareness
Anna Lyudvig - Traders Magazine
MIAX has deep rooted experience in developing, operating and trading on exchanges. Over the past decade, MIAX has grown from a single options exchange to a global trading company that provides access to U.S. and international capital markets.
This year, MIAX is deepening their connection to the Autism Science Foundation as a gold sponsor of Rides FAR (For Autism Research), an annual charity cycling and walking event that brings together many of the most prominent firms on Wall Street and beyond.
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| | | | | | Regulation & Enforcement | | | CFTC Is Scrutinizing Offshore Betting Platforms With US Traders; Agency chairman vows to take action against any violators; CFTC grappling with popularity of election derivatives markets
Lydia Beyoud - Bloomberg
A top financial regulator is closely monitoring offshore, unregulated companies that allow Americans to trade on US election outcomes.
"We are observing any activity that's occurring offshore and providing exposure to US customers," Rostin Behnam, chairman of the US Commodity Futures Trading Commission, said Tuesday at a conference hosted by Georgetown University's Psaros Center for Financial Markets and Policy.
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| | | | | | Events | | | The FIA Forum: Frankfurt 2024 will take place on October 9, 2024, at the Hilton Hotel in Frankfurt. The event will focus on regional and global trends in the cleared derivatives market, covering topics such as trading, clearing, product development, regulatory compliance, and industry operations. It will bring together industry experts to discuss the key developments affecting listed and cleared derivatives in the region. Learn more and register HERE. ~JJL
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| | | | John Lothian News (JLN) is the news division of John J. Lothian & Company, Inc. (JJLCO). The online media and financial services firm is staffed by derivatives industry, journalism and technology professionals. | | | | | | | John Lothian News Editorial Staff: | | | John Lothian
Publisher | | | Sarah Rudolph
Editor-in-Chief
| | | Jeff Bergstrom
Editor
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