 | August 18, 2021 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | ****SC: The Futures Industry Association released its July 2021 report on volume and open interest for exchange-traded derivatives, and it shows an overall volume gain of 26.9% compared with July 2020 for a combined total of 4.91 billion contracts. However, trading slowed down from its torrid pace of early summer -- July volume was down 2.4% from the month earlier. Year-to-date volume for the first seven months of 2021 year was 33.82 billion contracts, up 31.3% from the same period of 2020. Total open interest at the end of July 2021 was 1.11 billion contracts, the FIA report shows, up 1.8% from the previous month and up 11.2% from a year ago. A further breakdown of the data shows options trading again led the volume uptick in July with 2.69 billion options contracts traded versus 2.23 billion futures. Looking at asset classes, equity indexes paced futures and options volume, but trading in interest rate futures also was up, jumping by 51.0% in July. Trading in precious metals futures and options contracts declined 45.0%. On a regional basis, futures and options trading in the Asia-Pacific led the pack last month, up 38.3% from July 2020, followed by North America, which saw volume increase by 25.6%.
MIAX reported a SPIKE futures volume record Tuesday, with an estimated total of 8,202 contracts traded. So far in August, month-to-date average daily volume is 3,602 contracts, compared with ADV of 1,596 last month.
| | | | | | Lead Stories | | | CME in $16bn bid for Chicago exchange rival Cboe
Exclusive: All-share deal would combine futures and equity options specialists
Philip Stafford and James Fontanella-Khan - The Financial Times
CME Group has approached fellow Chicago exchange company Cboe Global Markets about an all-share deal to acquire the owner of the Vix volatility indices for nearly $16bn.
CME, the world's largest futures exchange operator, has offered 0.75 of its own shares for every Cboe share, according to three people familiar with the talks. The price would value Cboe at around $150 per share, around 20 per cent above its current price of $123.
/on.ft.com/3gak6W3
As investors look to Jackson Hole, options markets see 'a lot of nothing'
Saqib Ahmed - Reuters
Traders in U.S. equity options do not expect the Federal Reserve's symposium in Jackson Hole, Wyoming later this month to spark big moves in stocks, even as a focus on the Fed's taper timeline amplifies the buzz around the annual event, data and interviews with market participants showed.
/reut.rs/2Usm6Bt
Smart Money Had the Jump on Another Mid-Month Plunge in S&P 500
Lu Wang - Bloomberg
Whether hedging for options expiration, worsening virus sentiment or just a selloff adhering to a calendar quirk, investors were ready Tuesday for the S&P 500 Index's worst drop in a month. It may leave them armed for a rebound.
Traders who loaded up on protection against a selloff are cashing in Tuesday, as the S&P 500 fell 0.7% to halt a five-day winning streak. The Cboe Volatility Index, or VIX, spiked as high as 19.6, a level last seen more than two weeks ago.
/bloom.bg/3ASsxgW
Wall Street Traders Stockpile Hedges as Goldman Urges Caution
Anchalee Worrachate and Jill Ward - Bloomberg
The relentless spread of the delta variant. Warnings on growth for the world's two biggest economies. Geopolitical risk as Afghanistan falls.
An outbreak of bad news is spurring cautious investors to double down on cross-asset hedges as risk markets hold near record levels, while currency traders move into havens.
/bloom.bg/37ULLWA
Here's the stock market's 'wall of worry' as the S&P 500 trades near a peak, says Wells Fargo
Christine Idzelis - MarketWatch
The U.S. stock market has faced no shortage of worries, even as the S&P 500 index doubled its price since last year's trough and has hit an unusual number of record highs in 2021.
"It is often said that bull markets climb a wall of worry, and today, there are many bricks stacked in that wall," said Darrell Cronk, chief investment officer of Wells Fargo & Co.'s wealth and investment management division, in a note this week. He broke out Wells Fargo's top 10 market risks, indicating which ones should "fade" and those investors should "follow closely" or potentially "fear."
/on.mktw.net/3iZvq9i
Transmission revamp will reshape the financial world; The business of transacting is barrelling down a path of unstoppable change
Anne Richards - FT
Markets never stand still. In the past year, we've seen an explosion in options trading by retail investors, the Spac boom and the rise of digital tokens, used by everyone from Damien Hirst to central bankers. Most of the world may have been on intermittent pause since March 2020, but the business of transacting is barrelling down a path of unstoppable change.
/on.ft.com/3gdJevk
| | | | | | Exchanges | | | SGX named Asia's Best FX Exchange and FX Clearing House by FX Markets
SGX
Ease of access across multiple front-end systems and innovative products were highlighted by the award judges as SGX's clear winning factor
Singapore Exchange (SGX) has been named "Best FX Exchange in Asia" and "Best FX Clearing House in Asia" at the FX Markets Asia Awards 2021, based on voting and review by a panel of judges comprising representatives from banks, asset management houses, investment funds and trading firms, respectively.
/bit.ly/2UrQ6gO
| | | | | | Regulation & Enforcement | | | Warning: Trading crypto-asset related financial products through unlicensed entities
ASIC
ASIC urges Australians to be wary of investing in crypto-asset related financial products, such as options and futures, through unlicensed entities; By dealing with a licensed entity, you have certain investor protections; Check if the entity you are dealing with holds an Australian financial services (AFS) licence or an Australian market licence (AML)
online trading retail trader uses phone for crypto trading
Be wary of entities or platforms unlicensed to offer financial products; ASIC urges Australians to be wary of investing in crypto-asset related financial products and services where the provider does not hold an AFS licence or an AML.
/bit.ly/3CXu9rv
| | | | | | Technology | | | TriOptima's triResolve Margin Connects to Major Tri-Party Agents Through SWIFT
CME Group
TriOptima, a leading infrastructure service that helps to lower costs and to mitigate risk in OTC derivatives markets, has announced that it now offers integration via SWIFT to the four main tri-party agents; BNY Mellon, Clearstream, Euroclear and J.P. Morgan.
/bit.ly/3k1INFz
| | | | | | Strategy | | | How to trade like the investor who made $1bn in a day; Mark Spitznagel won't reveal how he made a 4,144% return, but he does discard plenty of rival trades Trophy case: Spitznagel's pit jacket, complete with bloodstain
Nell Mackenzie - Risk.net
Mark Spitznagel thinks it would be "worthless" to explain how he made a 4,144% return in the first quarter of 2020 by betting on tail risks in financial markets. The trade that paid off so spectacularly does not appear in his new book, Safe Haven: Investing for Financial Storms, and he refuses to confirm reports that attribute his stellar returns to the use of out-of-the-money options.
/bit.ly/3mrHsuD
| | | | | | Events | | | Regulatory developments in the Asia-Pacific region
FIA
19 August 2021 ⢠9:30 AM - 11:00 AM SGT
The Asia-Pacific region has seen a few significant regulatory developments in recent years which have affected the exchange traded derivatives marketplace. From China's steps to open its market to the increase in ESG regulations and the growing proliferation of digital assets, commercial and legal practices need to be realigned to fit this dynamic environment. Our panel of experts will share their views on key developments and their impact and provide insights on what regulatory trends they see in the horizon.
/bit.ly/3z0LzB1
| | | | | | Miscellaneous | | | Just2Trade Adds Options on US Exchanges for Its MT5 Offering
Investors can trade on the broker with exchanges coming from countries such as Thailand, Spain, Mexico, among others.
Felipe Erazo - Finance Magnates
Just2Trade, a European broker, announced on Tuesday that its customers can now trade options on US exchanges such as CBOE and NASDAQ through MT5 Global accounts. According to the press release, the options include Apple, Facebook, Pfizer, Walt Disney, Tesla, Advanced Micro Devices (AMD), General Motors, Morgan Stanley and Visa.
Per the trading's times, the broker firm stated that options would be available for trading from 09:30 ET to 16:00, regular US times, whose per-trade commission will be $5.
/bit.ly/37RDfYD
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| | | Jeff Bergstrom
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