 | | | | | | | | November 22, 2024 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | Remembering Bill Navin, OCC's former Executive Vice President, General Counsel and Chief Legal Officer
OCC
OCC joins the legal and options community in mourning the passing of William "Bill" Navin, former Executive Vice President, General Counsel, and Chief Legal Officer of OCC. Bill's journey with OCC began in 1999, but his connection to the organization dates back to its founding in 1973 when he served as outside counsel with Schiff Hardin & Waite. A partner at Schiff, Bill was instrumental in shaping OCC's legal framework and served as a trusted advisor and advocate for decades. His impact extended beyond his official duties, profoundly influencing the lives and careers of countless current and former OCC employees until his retirement in 2012.
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Catherine Yoshimoto, Director of Product Management, FTSE Russell, Talks With JLN About Investing and Listing Trends
JohnLothianNews.com
FTSE Russell this year is celebrating the 40th anniversary of the launch of Russell Indexes, and Catherine Yoshimoto, Director of Product Management at FTSE Russell, was in Chicago for a special event at the Cboe to mark the occasion. JLN met up with her downtown on Tuesday, November 12th for a chat. Last June, FTSE Russell celebrated the 35th anniversary of the annual reconstitution of the Indexes, which have been rebalanced annually since 1989. Cboe is licensed to offer options on the Russell Indexes, and the CME offers the futures on the Russell Indexes.
Read more »
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Insightful Financial Career Advice and More From Hedge Fund Founder Kevin Jamali
JohnLothianNews.com
In part two of our interview with Kevin Jamali, senior vice president at Farther, he talks about starting Auctos Capital in 2007, which he said was "the next phase" of his career. He had previously started a proprietary trading group on the floor of the CBOT.
Watch »
| | | | | | Lead Stories | | | Cboe to Launch Cash-Settled Bitcoin ETF Options as Crypto Booms; The move follows the launch of Bitcoin ETF options on Nasdaq; The largest crypto options markets are still outside the US
David Pan - Bloomberg
Cboe Global Markets Inc. said it is set to list the first cash-settled index options related to the spot price of Bitcoin, marking the latest addition of cryptocurrency-related securities to traditional exchanges.
The options will be launched on Dec. 2 and will be based on the Cboe Bitcoin U.S. ETF Index, which tracks a basket of spot-Bitcoin exchange-traded funds listed in the US, Cboe said in a statement on Friday.
Trump Set to Supercharge Options Boom Driven by Retail Investors; 'You're going to see more volatility spikes': CQG executive; Retail investors will need protection from added risks
Isis Almeida and David Marino - Bloomberg
Donald Trump's presidency is set to bring a fresh bout of volatility to markets, supercharging an options boom driven by retail traders.
Tariffs, geopolitical tensions and uncertainty over government policies are poised to increase price swings, boosting the appeal of options. Retail investors have already flocked to the likes of Robinhood Markets Inc. and other trading apps to deal in short-term options on equity indexes and exchange-traded funds.
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Currency Traders Bet on Trump Stirring Up Market Volatility; Hedge funds buy up options that pay out if FX swings increase; Traders expect policy divergence between US and Europe
Alice Atkins and Vassilis Karamanis - Bloomberg
Currency traders are betting that Donald Trump's policy agenda is about to jumpstart volatility in the $7.5 trillion-a-day foreign exchange market.
After years of benign moves, a gauge of one-year volatility on the euro-dollar exchange rate surged after the election. Hedge funds are scooping up options contracts that pay out if currency swings increase and strategists have dramatically revised their currency forecasts.
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Calamos Investments Looks to Hedge Bitcoin's Volatility With New ETFs; Calamos files for a suite of Bitcoin ETFs with capped upside; Analysts are optimistic existing regulatory hurdles will fade
Isabelle Lee - Bloomberg
Exchange-traded funds that pledge to hedge the epic volatility of the world's largest cryptocurrency may soon be coming to Wall Street, just after a triple-digit rally that's taken speculative euphoria to a whole new level.
Calamos Investments is looking to launch so-called "structured-protection" ETFs that will track a portion of Bitcoin's returns while hedging as much as 100% of the downside via the options market, according to paperwork submitted to the US Securities and Exchange Commission Wednesday.
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Citadel founder Ken Griffin said he would be 'open' to selling a stake in his $65 billion hedge fund
Bradley Saacks - Business Insider
BlackRock's potential investment into Izzy Englander's Millennium might have Citadel founder Ken Griffin thinking. At the Economic Club of New York Thursday, Griffin complimented BlackRock founder Larry Fink for being a "legend in asset management" and said that if the tie-up eventually does go through, "it's a very interesting" one. The early-stage talks between BlackRock and multistrategy rival Millennium were reported by the Financial Times earlier this month.
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| | | | | | Exchanges | | | Cboe to Launch the First Cash-Settled Options Product Related to Spot Bitcoin, Beginning Monday, December 2
Cboe Global Markets
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today announced plans to launch the first cash-settled index options related to the price of spot Bitcoin beginning Monday, December 2. Exclusively listed and traded on Cboe Options Exchange, these options will be SEC-regulated and based on the new Cboe Bitcoin U.S. ETF Index (Ticker: CBTX). The Cboe Bitcoin U.S. ETF Index, jointly developed by Cboe Labs and Cboe Global Indices, is the market's first U.S. spot Bitcoin ETF index. This modified market cap-weighted index is designed to track the performance of a basket of spot Bitcoin ETFs listed in the U.S. Moreover, it is designed to correlate to the price of spot Bitcoin, making it a representative measure of the asset.
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Henry Hub Natural Gas Sets Single Day Options Record Amid Colder Weather in the U.S.
CME Group
CME Group, the world's leading derivatives marketplace, today announced that Henry Hub Natural Gas options reached a single day volume record of 561,379 contracts on November 21, surpassing the previous record of 506,500 contracts traded on November 14, 2018.
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CME Group Adjusted Interest Rate Total Return Futures Reach Record Open Interest, Volume
CME Group
CME Group, the world's leading derivatives marketplace, today announced that its suite of Adjusted Interest Rate (AIR) Total Return futures reached an open interest (OI) record of 710,358 contracts (equivalent to $224 billion notional) on November 20. In addition, AIR Total Return futures average daily volume (ADV) stands at a record 11,600 contracts for 2024, up 152% year-over-year.
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Publication of statistics regarding over-the-counter (OTC) derivative transactions (as of March 31, 2024)
FSA
The FSA published the over-the-counter (OTC) derivatives report as of March 31, 2024, pursuant to the "Financial Instruments and Exchange Act." This report aggregated the OTC derivatives transactions data reported from the financial instruments business operators in Japan.
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| | | | | | Regulation & Enforcement | | | 'Crypto will get its way': Here's who could replace Gary Gensler as SEC chair; The incoming Trump administration is expected to be friendlier toward the cryptocurrency industry
Robert Schroeder - MarketWatch
With Gary Gensler announcing his Inauguration Day departure from the Securities and Exchange Commission, at least one thing appears evident: His replacement will be friendly to the cryptocurrency industry.
"We suspect crypto will get its way, and the next SEC chair will be much more sympathetic to the industry than Gensler has been," wrote Ian Katz of Capital Alpha Partners in a note shortly after the news of Gensler's departure broke.
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| | | | | | Strategy | | | Pythagoras Crypto Fund Returns 230% to Outpace Bitcoin's Rally; Small fund was launched shortly before Bitcoin ETFs debuted; The long-biased strategy relies on trend-following, leverage
Vildana Hajric - Bloomberg
Mitchell Dong spied an opportunity late last year: Spot-Bitcoin ETFs were coming to US investors soon, and he wanted his crypto hedge fund to offer a competing product that performed even better. Just weeks before Bitcoin funds got regulatory approval to start trading in January, his Pythagoras Investment Management launched its Alpha Long Biased strategy, a vehicle that looks to outperform the original cryptocurrency. It's been nearly a year since the launch and the fund has beaten Bitcoin every single month except two, with year-to-date gains of around 230%, or 206% after fees.
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MicroStrategy's Infinite Money Glitch Won't Last; Issuing debt to buy Bitcoin is like a game-breaking bug: lucrative but likely unsustainable.
Lionel Laurent - Bloomberg Opinion
"Overheated" is how short-sellers Citron Research described MicroStrategy Inc. on Thursday. That somehow understates the hype surrounding company founder Michael Saylor's laser-eyed bet on Bitcoin using capital-market funding, which has fueled MicroStrategy's stock-price rise of over 600% this year. It looks more like a corporate-finance version of an infinite money glitch in video-games - lucrative, addictive and likely unsustainable.
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Lagging Broader Market
Cboe (Video)
In the #RUTreport, Angela Miles evaluates the state of small cap stocks, large #RUT trades that have crossed the tape today, and expected moves in the Russell 2000 Index based on options pricing.
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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
Publisher | | | Sarah Rudolph
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| | | Jeff Bergstrom
Editor
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