| May 24, 2023 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Cboe prepares for European stock market listings grab; US trading venue operator to take on Euronext and Deutsche Borse for IPOs
Nikou Asgari - Financial Times
Cboe Global Markets is planning to start trying to lure companies to list on its markets in Europe, aiming to reverse a trend that has seen many companies desert the continent for the US. The group, which runs the largest pan-European share trading venue, is preparing to take on companies like the London Stock Exchange, Euronext, Nasdaq and Deutsche Borse, which dominate the market for primary listings. Cboe is aiming to launch listings in the coming weeks, from a base in Amsterdam.
/jlne.ws/45rMkDM
Bank Stocks Are the New Meme Stocks: 'You Can Create Real Panic'; Shares of banks such as PacWest used to be too boring for active traders. That was before March.
Gunjan Banerji - The Wall Street Journal
This is the year that bank stocks became meme stocks. Shares of banks such as PacWest have seesawed wildly since March. Bad news, including lost deposits, has sent them spiraling. Good news, like hints of greater government support, has sent them soaring. The sharp turns have been exaggerated by the same forces that turbocharged GameStop and AMC a couple of years ago: the lightning-fast spread on social media of both fact and rumor, strong interest from individual investors and the use of options and other tools that can amplify the impact of trades.
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****** I am not sure I want some Gamestop in my bank stock, even if I do own some.~JJL
EU sticks with post-Brexit clearing trade deadline despite objections; Brussels insists on wresting lucrative business from London as derivatives houses fear threat to stability
Sam Fleming and Jim Pickard - Financial Times
Brussels has rebuffed industry calls to rethink its plan for grabbing lucrative clearing business from the City of London, saying it needs to proceed to ensure robust markets in Europe. Mairead McGuinness, the financial services commissioner, defended the EU strategy to build up euro-denominated clearing, saying this proposal was vital to the bloc's "financial resilience".
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The Fed's Moral Hazard Is Undermining Risk Management
Harley Bassman - Barron's
For a government seeking to create good public policy, it's important to consider what is said, as well as what is unsaid. There is typically the dual goal of encouraging good behavior and discouraging bad behavior by employing carrots and sticks, both direct and implied. This dynamic is especially noteworthy when the Federal Reserve offers policies or takes actions that create moral hazard.
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| | | | | | Exchanges | | | Q2 2023 Options Update
Chicago Mercantile Exchange
Options has started off 2023 from a strong position, with 360M contracts traded and ADV of 5.6M making for a record quarter. In addition to this overall options growth, we have seen a number of records across the Options complex with Weekly Options experiencing continued momentum hitting a record weekly ADV of 1.44M for Q1 2023. Equity Index and Interest Rates also reached records of 1.3M and 3.8M concurrently.
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ICE Marks Latest Evolution for Brent as Midland Joins the Largest and Most Liquid Oil Contract in the World
Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, today announced that ICE Brent, the largest crude oil futures and options market in the world, has undergone its latest evolution with the addition of Midland WTI into the Brent basket, creating a new Midland exposure for the oil market to manage. ICE Brent withstood the volatility across markets in 2022. Liquidity has consistently grown through 2023 with open interest up 31% since the start of the year at over 5 million contracts and ADV of approximately 1.2 million contracts. Brent options represent the primary crude oil options market in the world in terms of open interest and volume. This month, Midland-origin WTI crude became an additional deliverable grade into the Brent basket creating a link between the price for U.S. Gulf Coast (USGC) Midland barrels and the settlement of ICE Brent futures.
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Shanghai International Energy Exchange has released its Announcement of Market Makers for Futures and Options
Shanghai Futures Exchange
Shanghai International Energy Exchange has released its Announcement of Market Makers for Futures and Options as follows:
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BOX Options Market: June Fee Changes
BOX Options Market
Effective June 1, 2023, BOX Options Market LLC ("BOX") is making the following changes to the BOX Fee Schedule:
/jlne.ws/3OBkMG0
| | | | | | Regulation & Enforcement | | | U.S. Regulators to Police Carbon-Trading Markets
Dave Michaels - WSJ
U.S. regulators say they're looking for signs of fraud or manipulation in the nascent market for trading carbon credits, which polluting companies use to offset the impact of their emissions.
/jlne.ws/3OUYsrp
Gemini issued warning by Philippines SEC over derivatives exchange
Coingeek.com
One of the top financial regulators in the Philippines has issued a warning over 'Gemini Derivatives,' a product available on Gemini's new Foundation platform, which the regulator alleges is violating Filipino securities law.
On May 18, the Philippines Securities and Exchange Commission (PSEC) issued an advisory notice to Gemini and its customers, warning that the derivatives exchange launched by the digital asset trading platform last month has been operating without a license and in violation of Filipino securities regulation.
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| | | | | | Strategy | | | Utilities Stocks Could Be the Next Hot Investment in a Time of Fear
Steven M. Sears - Barron's
Self-reliance. Cunning. Stoicism. Forethought of action.
Those qualities are perhaps the best response that investors can have as Democrats and Republicans posture about what they need to permit a temporary fix to the debt ceiling.
Most people apparently think politicians aren't reckless enough to let the U.S. default on its debts, yet investors' market positioning suggests they may not be so sanguine. They are seemingly adopting a trust-but-verify approach as they watch Washington.
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Jupiter Shorts 'Most Dangerous' Treasuries, Builds Cash Pile
Ruth Carson - Bloomberg
Mark Nash is shorting two-year Treasuries â what he calls the most dangerous US bonds â in a bet markets are wrong in predicting the Federal Reserve will cut interest rates this year.
"The Fed's number one job now is to whack inflation expectations in the front end," and that makes the rates-sensitive securities "the most dangerous part of the curve," said London-based Nash, who oversees the Jupiter Strategic Absolute Return Bond Fund that has beaten 91% of its peers over the past five years.
/jlne.ws/3OzEG4f
Oil shines as Nasdaq 100 dips with VIX fear index climbing
Paul Walton - Forex
The VIX, Wall Street's fear index, rose to 21 this morning, pricing in fears that the debt ceiling talks don't go well, and/or rates will rise further. Oil prices shone on news that supplies might tighten in the near future, bad news for economic growth and inflation. Today's release of the minutes of the May Federal Reserve meeting reported significant uncertainty on where rates go next.
/jlne.ws/3BSinzd
Volatility Rising on Debt Ceiling Debate
Cboe (Video)
/jlne.ws/43raaO7
| | | | | | Events | | | Event Contracts
FIA
Clifford Chance will discuss the evolving US regulatory framework for event contracts, recent CFTC developments and the current state of play, with a focus on sports and political event contracts. A comparative perspective will be introduced with consideration given to UK and EU regulatory frameworks.
/jlne.ws/427yl34
| | | | | | Miscellaneous | | | What Form of Magic Will Keep Citadel Happily Ensconced in Chicago?
Rich Miller - River Cities' Reader
From Illinois law: "No unit of local government shall levy any tax on stock, commodity, or options transactions." That statute has long been targeted for elimination by the Chicago Teachers Union and its allies. The CTU reliably shuns any proposal to increase property taxes across the board, instead pushing often-times "magical" solutions as alternatives. It's one way the union has maintained its popularity among Chicago voters.
/jlne.ws/3MT2HlC
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Editor
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