| October 27, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | 'Buffer' ETFs Post 80% Surge in Assets as Haven in Bear Market
Elaine Chen - Bloomberg
As this year's bruising stock selloff wiped about $1 trillion from the US exchange-traded fund industry, the same turmoil was powering one young breed of fund to its most-explosive growth yet.
Assets in so-called buffer ETFs -- which cushion losses in return for a cap on gains -- have surged 80% to $16 billion so far in 2022, according to data compiled by Bloomberg. They've drawn total net inflows of $8 billion in the span, almost triple the amount in all of last year.
/jlne.ws/3NgJr0a
Biden Team Reworks Plan for Russia Oil-Price Cap as Markets Sour; Price cap level trending higher than initial US plans; Many countries have refrained from committing to cap
Saleha Mohsin, Alberto Nardelli, and Ewa Krukowska - Bloomberg
US officials have been forced to scale back a plan to impose a cap on Russian oil prices, following skepticism by investors and growing risk in financial markets brought on by crude volatility and central bank efforts to tame inflation. Instead of strangling the Kremlin's oil revenues by imposing a strict lid on prices that would have been observed by a broad "buyer's cartel" of nations, the US and European Union are likely to settle for a more loosely policed cap at a higher price than once envisioned, with just Group of Seven nations and Australia committed to abide by it, according to people familiar with the matter.
/jlne.ws/3gPnOrH
Institutional Investors Are Wading Into Volatile Crypto Markets: Fidelity
Carleton English - Barron's
Crypto markets have been volatile but that hasn't stopped institutional investors from warming up to the nascent sector.
That was the takeaway of Fidelity's fourth annual digital assets survey, which found that nearly 60% of institutional investors were invested in digital assets in the first half of the year, marking a 6-point increase from the prior year. Further, 74% of investors said they would invest in the future, reflecting a 3-point increase. For crypto enthusiasts, the embrace of digital assets even amid a challenging market suggests the asset class is here to stay.
/jlne.ws/3sBgUc1
Why natural-gas prices posted a 6-session decline of 26%
Myra P. Saefong - MarketWatch
Natural-gas prices were poised for their largest yearly percentage rise in 23 years before erasing much of that gain in the span of six sessions this month.
The U.S. market shifted from worries about tight supplies to the potential for lower heating fuel demand on the back of warmer weather forecasts.
/jlne.ws/3TJYbqu
Derivatives Exodus From London Shows Brexit's Impact, Kemp Says
Greg Ritchie - Bloomberg
A shift in derivatives trading from the UK to the European Union reflects the impact of Brexit, according to Jerome Kemp, a former global head of futures and clearing at Citigroup Inc.
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| | | | | | Exchanges | | | Accelerating to T+1: Functional Review
DTCC
The U.S. Securities and Exchange Commission recently proposed rule changes to accelerate the settlement cycle to T+1. If the rule changes are adopted, a T+1 cycle for U.S. equities transactions could be implemented as soon as March 31, 2024 (subject to change based on regulators' feedback).
To help firms plan and prepare for industry testing, DTCC has launched a series of virtual forums to help clients and the industry understand the impact of Accelerated Settlement and T+1 on specific market processes. Moderated by David Kirby, DTCC Executive Director, Head of Americas Relationship Management, the latest virtual session featured Robert Cavallo, DTCC Director, Clearance & Settlement Product Management and Louis Lepore, DTCC Director, Clearance and Settlement Product Management.
/jlne.ws/3szr1OH
CME Defends FCM Application
Shanny Basar - MarketsMedia
CME Group confirmed that it has filed a regulatory application for a futures commission merchant but the derivatives exchange but the derivatives exchange said it had no intention of competing with its existing FCM community. The Wall Street Journal had reported that CME had registered with the US Commodity Futures Trading Commission in August for an FCM, who act as intermediaries between customers and exchange members who execute or clear trades.
/jlne.ws/3THJFQh
Deutsche Börse makes strategic investment into private derivatives trading platform; The exchange group has invested $3 million into Caplight Technologies to expand its derivatives trading and hedging capabilities on private company shares.
Laurie McAughtry - The Trade
Deutsche Börse Group has invested $3 million into Caplight Technologies, a platform designed to enable institutional investors to hedge, generate income or take long and short positions on private company stock using structured products and synthetics.
/jlne.ws/3FlNKVT
Change to the Live Quote Window Time for the SPIKES Settlement Auction
MIAX
Beginning on November 16, 2022, MIAX Options will change the Live Quote Window ("LQW") opening time to 8:30:00 AM ET for SPY options used in calculating the SPIKES Settlement Price. Please refer to MIAX Options RC 2022-66 for more details.
/jlne.ws/3wWeXsv
| | | | | | Strategy | | | How to Harness Time and Leverage, and Bet on Better Days
Steven M. Sears - Barron's
Politicians come and go, but financial markets reign forever.
The demise of Liz Truss, whose naive economic policies annoyed investors and got her booted after 44 days as the United Kingdom's prime minister, is additional evidence that it is unwise for politicians to trifle with markets.
As if to make the message even more obvious, not to say deliciously ironic, Truss' successor, Rishi Sunak, is a former banker, hedge fund executive, and chancellor of the exchequer. Sunak is thought to be the richest person to ever serve as prime minister.
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Enhanced Execution with Retail Priority
Cboe
Cboe EDGX's unique Retail Priority allocation model gives significant benefits to individual investors placing attested Retail Priority orders. All Retail Priority orders are identified on the EDGX PITCH feed to enhance execution quality for Retail Priority orders, improve transparency and to allow non-Retail Priority orders to ascertain their own queue position. As more individual investors turn to Retail Priority to execute their orders, Cboe's Execution Consulting Team analyzed the continued value Retail Priority brings market participants and how investors can intelligently interact with this type of unique liquidity.
/jlne.ws/3Wb0zrU
| | | | | | Miscellaneous | | | 'Gambling on democracy': US regulators weigh election futures market
Madison Darbyshire - Financial Times
US regulators will decide this week whether investors can place market bets on elections, a move that critics warn would muddy the distinction between trading and gambling on American democracy.
The Commodity Futures Trading Commission, the main US derivatives regulator, is scheduled to decide by Friday if Kalshi, a retail-focused futures market, can offer contracts representing a bet on whether the Democrats or Republicans will prevail in the upcoming midterms.
/jlne.ws/3gMaiF1
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| | | Jeff Bergstrom
Editor
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