| June 14, 2023 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Cboe Clear Europe Plans to Introduce Clearing Service for Securities Financing Transactions
Cboe Global Markets
Cboe Global Markets Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today announced that Cboe Clear Europe, its Amsterdam-based clearing house, is planning to introduce a Central Counterparty (CCP) clearing service for securities financing transactions (SFT) in Q3 2024, subject to regulatory approvals.
/jlne.ws/3X8q7qF
Aevo mainnet launch opens decentralized futures, options; Decentralized derivatives platforms have struggled to attract sufficient liquidity, especially in the options space
Macauley Peterson - JD Supra
The Singapore-based team of Ribbon Finance officially opened its new product Aevo, a derivatives exchange, to the public today. Aevo, which was first announced in September 2022, has been in a "gated" phase since April, with users needing to hold an "exchange pass" NFT for access. "Since releasing the gated mainnet approximately 2 months ago we saw over [$70 Million] trading volume and a high of [about $5 million] in daily open interest," the Aevo team wrote in a blog post. The mainnet is no longer limited to NFT holders, and the platform also began offering bitcoin perpetual futures and options in addition to ether derivatives.
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SIX Swiss Exchange suffers longest outage in 11 years; Euronext and Nasdaq venues in Europe have also seen disruption within the past year
Jamie Gordon - ETF Stream
The SIX Swiss Exchange experienced its worst outage since 2012 with trading halted for three hours on Tuesday. Interruptions to equities and options trading began at 11am Central European Time (CET) before being halted altogether until 2pm. SIX noted the cause of the outage had been found but a full diagnosis would take days to complete. A spokesperson for SIX Swiss Exchange told ETF Stream: "We had promptly notified market participants and regulators about the situation.
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Traders Position for a Fed Pause, Start Unwinding Cut Wagers
Edward Bolingbroke - Bloomberg
Trading in options on US short-term interest rates heated up before and after May inflation data released Tuesday, with notable flows including apparent unwinds of wagers on Federal Reserve rate cuts later this year amid continued positioning for a pause in the hiking cycle on Wednesday. Flows in options on the benchmark Secured Overnight Financing Rate after the inflation data included 100,000 December 2023 call spreads, consistent with an unwind or adjustment of a hedge for Fed rate cuts into year-end.
/jlne.ws/3CwyXVC
Tesla Chase Has Options Traders at Their Most Optimistic Since 2021
Eric Wallerstein - The Wall Street Journal
Options traders are trying to ride Tesla shares' hot streak, though the stretch of daily gains may soon snap. The stock, recently down less than 1%, finished Tuesday on a 13-day win streak, its longest on record. Meanwhile skew, an options-based measure of pessimism vs. optimism tied to the stock, has fallen to its lowest level since January 2021, according to Cboe data. That reflects a growing demand for bullish call options, which give the right to buy shares at a certain price and date, tied to Tesla stock, relative to bearish put options, which confer the right to sell.
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| | | | | | Exchanges | | | Cboe Global Markets Announces New Senior Leadership Appointments to Support Continued Global Expansion and Future Growth
Cboe Global Markets
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today announced five new senior executive hires that will continue to support the company's global expansion and drive its future growth and success. These appointments include Megan Goett as Senior Vice President, Chief Marketing Officer; Hatice Unal as Senior Vice President, Infrastructure; Laura Fuson as Vice President, Futures; Jodie Gunzberg as Head of Strategic Partnerships; and Katherine Kirkpatrick as Chief Legal Officer, Cboe Digital.
/jlne.ws/43C6ERO
Cboe is rewarded for playing by the rules in crypto
Steve Daniels - Crain's Chicago Business
Slow and steady may end up winning the cryptocurrency trading race for Cboe Global Markets. Federal approval of Cboe's application to facilitate trades of margined futures in bitcoin and Ethereum came almost simultaneously with the Securities & Exchange Commission's groundbreaking lawsuits against more established crypto exchanges Binance and Coinbase.
/jlne.ws/43ZIL6h
SR-NASDAQ-2023-015 Notice & Approval
Nasdaq
A proposal to eliminate a transaction credit at Equity 7, Section 118(a). Approved: Yes
| | | | | | Regulation & Enforcement | | | Bourses seek longer F&O trading hours; The move is aimed at attracting more trading members for onshore F&O contracts as global investors could prefer trading at Gift City given tax benefits
Kumud Das - Bizz Buzz (Mumbai)
Even as the SGX-Nifty Gift Connect set to become fully operational from July 3, domestic exchanges are pushing for extension of trading hours for the onshore derivatives market. Gift Nifty Singapore is making a lot of money through SGX Nifty. By introducing Gift Nifty that money can be brought back to India. At the moment Indian residents can't trade in Gift Nifty but that may change soon. And bourses are pushing Sebi to allow longer F&O hours to compete with Gift Nifty.
/jlne.ws/3p7nmJO
| | | | | | Strategy | | | Big Investors Are Getting Nervous About This Market. This Is Why.
Steven M. Sears - Barron's
Hope for the best. Prepare for the worst. Such is the message from the options market as the S&P 500 indexSPX - 0.01% continues to dance on a razor's edge near record-high territory. Inflation appears to be cooling, which suggests the Federal Reserve may shy away from more aggressive interest rate increases, benefiting stocks. Yet options trading patterns suggest that sophisticated investors aren't so sanguine.
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OPTIONS JIVE: Iron Condors Speed of Decay JUN 14, 2023
tastylive
This segment examines the duration of Iron Condor trades with varying levels of short delta to reach the 50% max profit point and assesses whether the duration is consistent or differs significantly between these positions.
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Here's an Option: Risk Hedging in the S&P 500; If you want to speculate on declining equity prices or hedge your portfolio, a risk reversal might make sense. Let's look at some hedging strategies.
Carley Garner - Real Money
This week has been the perfect storm for a short squeeze in equities. The Fed's rate decision lands Wednesday, and Tuesday morning, we received relatively good news regarding waning inflation. So, the Fed seems destined for a pause in rate hikes. Further, the June futures and options expire at the end of the week, which is putting pressure on those who have been short and suffering to cover (buy). That said, the buying has been position-squaring-based, not necessarily fundamental-based, and we are approaching significant technical resistance with the Relative Strength Index on a daily chart near 70.00. In the short run, the market is vulnerable to a pullback.
/jlne.ws/3qQmDwM
Only a Few Funds Are Up Last Year and This Year. How They Did It.
Lewis Braham - Barron's
Last year was a terrible one for most investors. It was also a great test to see which funds in your portfolio can play defense. But what about offense? You could view this year as part two of a test to find all-weather funds. So far in 2023, the Nasdaq 100 IndexNDX +0.12% , a tech-stock-laden benchmark tracked by the popular Invesco QQQ TrustQQQ +0.13% exchange-traded fund (ticker: QQQ), is up 36%âafter falling 33% in 2022. The S&P 500SPX - 0.16% has a similar trajectory, down 18% in 2022 and up 14% in 2023. And the popular iShares Core U.S. Aggregate BondAGG +0.02% ETF (AGG), down 13% in 2022, is up 2% this year.
/jlne.ws/42IJ1FE
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