| May 08, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Cboe Sees Fundamental Change in Options Trading
Shanny Basar - MarketsMedia
Edward Tilly, chairman and chief executive of Cboe Global Markets said there has been a fundamental evolution in options trading as many market participants now open and trade positions on the same day that options expire.
Tilly said on the first quarter results call on 5 May that Cboe continued to make progress delivering on its top strategic growth priorities - derivatives, data and access solutions, and Cboe Digital.
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Options and Equity Market Structure - A Deep Dive
SIFMA
U.S. options trading volume has doubled since 2019 and in 2022, as reported by Cboe, the industry saw total options volume grow to over 10 billion contracts for the first time.
This robust growth in options includes retail participation, which peaked in 2022 and, while it has eased, remains above pre-pandemic levels.
/jlne.ws/3HRWYtA
Oil Crash Sends Speculators Fleeing at Fastest Pace in Six Weeks; Declining liquidity will likely drive more volatility; New York crude futures briefly hit lowest level since 2021
Devika Krishna Kumar - Bloomberg
Speculators are once again fleeing the oil market, setting the stage for more extreme price swings. Money managers dumped their net-bullish oil holdings by 19%, the biggest drop in six weeks. The positions are now at the lowest seasonal level in more than a decade. The exodus comes amid another crash for oil, driven by concerns over the economy.
/jlne.ws/42wultN
Buffett Predicts a Downturn. Inflation Data and Earnings Will Indicate Its Severity.
Callum Keown - Barron's
The strength of the U.S. labor market continues to keep the threat of recession at arm's length, for now.
The U.S. economy added 253,000 jobs in April, above the 185,000 expected. The stock market loved it.
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Fed Interest Rate Bets: Goldman Joins Barclays in Wager Against Cuts in 2023
Edward Bolingbroke - Bloomberg
US interest-rate strategists at Goldman Sachs Group Inc. joined those at Barclays Plc in advising customers that the Federal Reserve will be less aggressive in cutting rates this year than markets are predicting.
Swap contracts that reference Fed meeting dates continue to be priced for a policy rate about 70 basis points lower than the current one by year-end. Goldman strategists led by Praveen Korapaty recommended paying the December rate, anticipating it will rise.
/jlne.ws/3BonlUp
| | | | | | Exchanges | | | Know-how on the go: Get our report on Option Volatility Strategies
Eurex
In support of our Option Volatility Strategies (OVS) offering for trading equity index and fixed income products, we prepared a report providing useful information on these strategies' benefits. The report also details how delta-neutral products enhance sell-side firms' risk management practices and provides investors with a valuable investment tool when seeking delta-neutral alternatives.
/jlne.ws/3NPeZfN
Changes on the Position Limits for Securities Options
JPX
OSE sets the position limits , large position reporting threshold on Securities Options and Maximum Number of Decimal Digits for Strike Price (Flexible Options),which will be applied from May 12, 2023. OSE has set the position limits on Securities Options, which will be applied from May 12, 2023.
/jlne.ws/44Hjhfl
April 2023 figures at Eurex
Deutsche Boerse Group
Eurex, Europe's leading derivatives exchange, reports a 15 percent decrease in total trading volume to 115.7 million contracts in April from 136.8 million contracts in the same month last year. Interest rate derivatives decreased by 16 percent year-on-year in April from 49.2 million to 41.5 million traded contracts. Index derivatives decreased by 13 percent, from 58.2 million to 50.8 million contracts traded. Equity derivatives trading declined 20 percent from April 2022 to 23.4 million contracts.
/jlne.ws/3piyrHE
| | | | | | Strategy | | | With a liquidity crisis looming, investors must switch their thinking
Lori Heinel - Financial Times
A potential liquidity crisis is looming over financial markets. To prepare, investors must change how they think about liquidity in their portfolios. The past will not be a guide.
There are three reasons driving our concern. First, the macroeconomic environment has shifted profoundly, moving from the quantitative easing stimulus programmes of central banks to tightening on a co-ordinated basis.
/jlne.ws/3NIeQL8
Crypto Options Exchange Deribit's Ether Volatility Index Hits Record Low
Omkar Godbole - Yahoo Finance
The downtrend in leading crypto options exchange Deribit's forward-looking ether volatility index (ETH DVOL) continues amid macroeconomic uncertainties and the pepecoin (PEPE) frenzy that has boosted demand for the Ethereum network.
The DVOL index, which calculates ether's annualized 30-day implied volatility or expectations for price turbulence over the next four weeks, fell to a record low of 51 over the weekend, according to digital assets data provider Amberdata. The implied volatility is calculated based on Deribit's options order book.
/jlne.ws/3M40VOg
Traders Await CPI Data
Cboe (Video)
Traders Await CPI Data
/jlne.ws/44QZhHc
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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
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| | | Jeff Bergstrom
Editor
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