| December 14, 2023 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | Yesterday, representatives of the Folds of Honor charity rang the closing bell at Cboe Global Markets, along with those from the RiverNorth Patriot ETF (FLDZ) that contributes 90% of its management fees to the charity. The ETF moved to Cboe in December of 2022 from NYSE Arca.
The Folds of Honor charity benefits not only military families, but also first responders. Dan Rooney is the founder of Folds of Honor, and he hit the bell with the prosthetic leg of a veteran, who was beside him, who also pulled the clapper in the bell to close Wednesday's session.
After the session ended, Cboe played a video featuring Dan Rooney, which you can find on the front page of the Folds of Honor website, about the origin of the organization. This was the first time Cboe had played such a video after a bell ringing and the entire Cboe floor community stayed for the video, which is commendable.
MEMX shared the news that its new MEMX options traded 43,096 average daily contracts in November, up from 16,218 in October. It also said QQQ option products were added on November 28 and six more symbols (AAPL, AMZN, EEM, HYG, TLT, VXX) were rolled out on December 12. ~JJL
| | | | | | Lead Stories | | | CME Group SOFR Open Interest Surpasses Record 60 Million Contracts
CME Group
CME Group, the world's leading derivatives marketplace, today announced that open interest in its deeply liquid SOFR complex set a new record of 60,435,467 contracts on December 12, including 48.3 million options contracts and 12.1 million futures contracts. Average daily volume (ADV) in SOFR futures and options this year also reached a record 5.1 million contracts.
/jlne.ws/48hnvv3
Dow Jones logs third highest close in history as stocks add to loftiest levels of year
Joy Wiltermuth - MarketWatch
U.S. stocks set fresh closing highs for the year on Tuesday, with the Dow Jones booking its third highest finish in history.
Equities rallied as investors waited on the Federal Reserve on Wednesday to provide more insights on the potential path of interest rates. The Dow Jones Industrial Average added about 173 points, or 0.5%, ending near 36,577, according to preliminary FactSet data.
/jlne.ws/4aobNjW
Markets Aren't Doing Jerome Powell's Work Anymore
John Authers - Bloomberg
US inflation is much lower than it was. It's not declining very fast and remains above the Federal Reserve's targets. And nobody is greatly surprised. Those are the main conclusions to derive from the consumer price inflation numbers for November, the last significant data point that the central bankers in Washington will see before their last meeting on monetary policy for the year on Wednesday.
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Hedge Funds' Secret Playbooks Are Opening Up: Large investment pools next year will have to report substantial positions in a stock much quicker.
Joe Light - Barron's
Shares of Phillips 66 got a pop recently, but it had nothing to do with oil prices. The catalyst was hedge fund activist Paul Singer, whose firm, Elliott Investment Management, disclosed a $1 billion stake in Phillips. Elliott wants Phillips to cut costs at its refinery operation; if it works, Elliott says, the stock could rise by 75%.
It's a familiar playbook on Wall Street: secretly build a stake in a stock, then capitalize when other investors find out and bid up the shares. As hedge funds see it, the pop is just the start, and everyone wins if activist pressure prevails on its target and the stock winds up higher.
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Markets are becoming less efficient, not more, says AQR's Clifford Asness
Robin Wigglesworth - Financial Times
The mounting deluge of mostly irrelevant information is overwhelming many investors, making financial markets more chaotic and less efficient at pricing in important data, says hedge fund magnate Clifford Asness.
The founder of US-based AQR Capital Management, still one of the world's biggest computer-driven investment firms despite a sharp drop in assets in recent years, once studied under the University of Chicago's Eugene Fama, who won a Nobel Prize for his efficient markets hypothesis.
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Asia-Pacific's ETF industry is taking off, says Invesco executive
Sinyi Au - Financial Times
The Asia-Pacific region has not only become the fastest-growing exchange traded fund market in the world, but distribution is reaching a broader range of clients than in the US or Europe, experts say.
Speaking during an Ignites Asia webcast, Tom Digby, Invesco's head of ETF business development and capital markets for Asia-Pacific, said ETF assets in the region were growing at between 26 per cent and 30 per cent per year in countries from Australia to China to South Korea.
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| | | | | | Exchanges | | | ICE and Blockstream Add Cryptocurrency Options Data to Joint Crypto Offering on the ICE Consolidated Feed
Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology and market infrastructure, and Blockstream, a leader in blockchain technologies and financial cryptography, today announced the addition of cryptocurrency options data to the Cryptocurrency Data Feed offered via the ICE Consolidated Feed. Launched by ICE and Blockstream in 2018, the Cryptocurrency Data Feed offers real-time cryptocurrency information and includes data on over 100 cryptocurrencies from more than 30 globally sourced venues and exchanges. As part of ICE's exclusive agreement with Blockstream, ICE offers extensive coverage of prices and order book data for cryptocurrencies by exchange.
/jlne.ws/47WIK5o
US CFTC OKs crypto firm Bitnomial's vertical integration plan
Reuters
The U.S. Commodity Futures Trading Commission on Wednesday voted to approve a plan from a Chicago cryptocurrency derivatives exchange and brokerage to also act as its own registered clearinghouse.
The approval of the plan by Bitnomial, an exchange founded in 2014, marks the first time the commodities regulator has voted to allow a vertically-integrated market structure. Bitnomial also has exchange and broker licenses. Two Democratic and two Republican commissioners voted to OK the firm's application, while the third Democratic commissioner dissented.
/jlne.ws/48fY1Ot
CFTC wrestles with new clearinghouse models
Will Acworth - FIA
The Commodity Futures Trading Commission is attempting to update its regulatory framework for derivatives clearinghouses to address the rise of new business structures that integrate certain functions that previously were separated. The agency's five commissioners disagree on the way forward, however, with some calling for moving forward one step at a time and others urging a slower, more comprehensive approach.
Two pending proposals have brought these differences to light. At an open meeting today, the CFTC's five commissioners discussed a proposal to close a gap in its customer protection requirements that was exposed by the failure of FTX a year ago. The commissioners also discussed a separate proposal from a company that is seeking to combine a clearinghouse, an exchange, and a futures commission merchant in one organization.
/jlne.ws/41kNAan
Europe's stock exchanges face calls to reform fees to challenge Wall St
Sinead Cruise, Huw Jones and Samuel Indyk - Reuters
Top stock exchange operators in Europe are under pressure from some investors and brokers to trim and simplify their fees to build a deeper capital market that challenges Wall Street's allure to new company listings.
The European Union has long sought to make its fragmented capital markets more efficient, with Britain also trying to find new ways to attract big-ticket IPOs since Brexit.
/jlne.ws/3TqiZGh
Excellence in Exchanges: Meaghan Dugan, NYSE
Anna Lyudvig - The Trade
Meaghan Dugan, Head of Options at the New York Stock Exchange (NYSE), won Excellence in Exchanges at Markets Media Group's 2023 Women in Finance (U.S.) Awards.
/jlne.ws/48hkcUz
| | | | | | Regulation & Enforcement | | | SEC Chair Gensler Says New Rules Help Lower Risk
Bloomberg
Securities and Exchange Commission Chair Gary Gensler talks about new rules that says hedge funds and brokerages have to centrally clear more of their US Treasuries trades. He speaks to Bloomberg's Kailey Leinz.
/jlne.ws/3Rmtubd
SEC Extends Deadline on Invesco and Galaxy Digital Spot Ethereum ETF to February 2024
Hope C - CoinMarketCap
SEC Extends Deadline on Invesco and Galaxy Digital Spot Ethereum ETF to February 2024
The United States Securities and Exchange Commission (SEC) has announced a delay in its decision regarding the spot Ether exchange-traded fund (ETF) proposed by Invesco and Galaxy Digital. In a notice issued on December 13, the SEC stated that it would extend the period for consideration of a proposed rule change. This change would enable the Cboe BZX Exchange to list and trade shares of the Invesco Galaxy Ethereum ETF.
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Trade associations file joint lawsuit opposing SEC securities reporting and short selling rules; The National Association of Private Fund Managers (NAPFM), Managed Funds Association (MFA), and Alternative Investment Management Association (AIMA) claim that the changes have not sufficiently considered the interconnectedness of the rules.
Claudia Preece - The Trade
NAPFM, MFA, and AIMA have filed a lawsuit to the US Court of Appeals following the US Securities and Exchange Commission's (SEC) adoption of two rules related to the requirements for reporting and public disclosure of securities loans and short selling activity. The associations are seeking to invalidate the two rules on the grounds that they are "arbitrary and capricious and will harm investors and markets," as described by Bryan Corbett, president and chief executive of MFA.
/jlne.ws/3RHEnFM
SEC votes to expand central clearing in overhaul of $26tn Treasury market; Plans cover fewer trades than initially proposed in concession to hedge funds
Kate Duguid and Stefania Palma - Financial Times
US regulators on Wednesday voted to require more Treasury bond trades to be cleared centrally, a landmark reform aimed at bolstering the resilience of one of the world's most important financial markets. The Securities and Exchange Commission in Washington voted four to one in favour of a proposal that could require an additional $1tn of daily trades to be handled by an independent clearing house. That would mean market participants have to stump up collateral to back those positions or cap the amount they can borrow in so-called repo trades.
/jlne.ws/3t8zZGB
| | | | | | Strategy | | | Call Vs Put
Cboe (Video)
In #Vol411, Scott Bauer @cboesib lets us know that trading volume picked up dramatically after the Fed announcement and after Jerome Powell spoke yesterday, $AAPL looks to have hit a new all-time high with a million contracts traded and more.
/jlne.ws/3uZMYe2
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