| August 25, 2023 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Cboe challenges perceived narrative on US equity market structure reform
Laurie McAughtry - MarketsMedia
The US regulator is proposing major structural reforms - and not everyone is happy about the current plans. Last night Cboe Global Markets issued a letter to the SEC to stress its "strong disagreement" with the perceived attack on exchange pricing practices. BEST EXECUTION spoke to Adam Inzirillo, head of North American equities, to learn why he believes reducing access fees is a "myth" that won't improve market efficiency.
/jlne.ws/3OTonhe
Biggest Yuan Bears Fail to Gain Traction Among Option Traders; Options pricing in just tiny chance of yuan hitting 7.70 in 3Q; Implied volatility in dollar-yuan has begun to retreat
Bloomberg
Strategists may be getting increasingly bearish on the yuan but their words are failing to resonate with option traders who see very little chance of the currency falling to some of the most pessimistic levels forecast. Societe Generale SA have penciled in a year-end target of 7.60 per dollar for the embattled currency while their peers at Bank of America see a slide toward 7.70 this quarter as a possibility - about 5% weaker than Friday's 7.29 level offshore.
/jlne.ws/47Pj6jk
Bitcoin options data points to an interesting outcome after this week's $1.9B expiry
Marcel Pechman - CoinTelegraph
The upcoming $1.9 billion Bitcoin monthly options expiry on Aug. 25 is key to defining whether the $26,000 support level will hold. One could pin the recent cryptocurrency market sell-off on the United States Securities and Exchange Commission (SEC) delaying its decision on spot Bitcoin exchange-traded funds, but there's also the macroeconomic perspective.
/jlne.ws/3YSxYtj
Stocks Dip in Volatile Trading After Powell's Speech
Jacob Sonenshine - Barron's
The stock market was whipsawed as Federal Reserve Chairman Jerome Powell took a hawkish tone regarding inflation in his speech at Jackson Hole.
The Dow Jones Industrial Average is down 11 points, while the S&P 500 is down 0.1% and the Nasdaq Composite is down 0.1%. All three indexes were in the green earlier.
/jlne.ws/45OrKNz
Powell Says Fed Will 'Proceed Carefully' on Further Rate Rises
Nick Timiraos - WSJ
Federal Reserve Chair Jerome Powell argued for holding interest rates steady for now, but kept the door open to raising them later this year if the economy doesn't slow enough to keep inflation declining.
Powell's heavily anticipated address at the Kansas City Fed's annual symposium here underscored how he is trying to thread the needle between restraining the economy enough to reduce price pressures without throwing it into a needlessly severe slowdown.
/jlne.ws/3OPMxt5
Powell Leaves Door Open to September Rate Increase
Megan Cassella - Barron's
Market watchers have hoped that the Federal Reserve will keep interest rates steady when policy makers meet in September, but Chairman Jerome Powell was unwilling to shut the door on the possibility that they might be increased.
In his speech, Powell acknowledged some evidence the economy "may not be cooling as expected," including economic growth that has come in above expectations and consumer spending that has remained "especially robust."
/jlne.ws/3Pfje4J
| | | | | | Exchanges | | | Qatar Stock Exchange Initiates Educational Campaign On Securities Lending And Borrowing, And Covered Short Selling Mechanisms
Qatar Stock Exchange
Aligned with its dedication to providing market participants with essential insights, QSE is pleased to unveil a series of educational initiatives that will empower investors to navigate the evolving landscape of financial opportunities. To kick off this campaign, QSE will be organizing two educational seminars, conducted in both Arabic and English, on August 29 and 30, 2023.
/jlne.ws/47KQKa5
| | | | | | Technology | | | Data arms race heats up as venues and vendors eye buy-side business through new initiatives; As the buy-side increasingly seek higher quality and comprehensive data, providers are answering the call, focused on enhancing their services and increasing their scope.
Claudia Preece - The Trade
Across the market, businesses have been increasingly turning their attention to data quality and accessibility, seeking to enhance their offerings for buy-side clients with ample recent movement in the last few weeks. Over recent months, historical Level 3 data provider BMLL has seen a surge in activity as it continues to expand its equities and ETF data coverage. Its products now include data from the Hong Kong Stock Exchange (HKEX), Cboe Europe Indices, and more recently this month, the Shenzhen Stock Exchange.
/jlne.ws/3qQWhv2
| | | | | | Strategy | | | Dale Jackson: Options could be the right option for your portfolio
Dale Jackson - Bloomberg
At some point in the life of a retirement investor, the three basic asset classes - equities, fixed income and cash - are not enough to lower overall portfolio risk without sacrificing growth.
That's where options can help lock in the savings you worked so hard to accumulate. Options and other derivatives can be the right option for older Canadians to generate safe income.
Derivatives get their value, risk and basic term structure from an underlying asset, normally a stock. Options give investors the right, but not the obligation, to buy or sell an underlying asset.
/jlne.ws/44lsfxm
GDP Revision Coming Next Week
Cboe (Video)
In #Vol411, Dan Deming @Djd551 covers upcoming events that could impact the vol structure, active $VIX #options, the VIX #futures roll market, and more.
/jlne.ws/44ndOJ3
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