| August 30, 2024 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | 
Celebrating 25 Years of the John Lothian Newsletter - A Leap of Faith in 1999
JohnLothianNews.com
Twenty-five years ago, in August 1999, I began producing this daily newsletter as a marketing and networking tool to promote my electronic trading brokerage services, Commodity Trading Advisor offerings, and my personal brand.
I was competing with large discount commodity firms that were transitioning to electronic trading, and I needed to market myself and my firm and find a way to stand out, but I didn't have many monetary resources to do so. Therefore, I had to think outside the box.
My specific goals at the time were to increase the number of my brokerage clients at The Price Futures Group, to raise funds for Defender Capital Management and Hargrave Financial Group, two CTAs I represented, and to elevate my profile amid industry changes that I felt could undermine my career path.
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| | | | | | Lead Stories | | | CME Is Bringing Levered Bitcoin Bets to the Masses
David Pan - Bloomberg
As traditional financial firms in the US take full advantage of the revival of crypto after the landmark launch of Bitcoin exchange-traded funds, retail investors are vying for more access to derivatives trading that juices up bets in the volatile market.
Institutional investors in the US enjoy a myriad of platforms to trade crypto derivatives such as options and futures contracts. They can tap into over-the-counter options trading desks in which participants make bilateral agreements, or futures contracts that require a large amount of collateral. Granted, there are futures-based ETFs, but those vehicles may not be the most cost-effective tools for small traders.
/jlne.ws/3ALTuYV
VIX at 65, MOVE Above 100: All Options Considered
Bloomberg (Podcast)
In this edition of the All Options Considered podcast, BI's Chief Global Derivatives Strategist Tanvir Sandhu covers the VIX at 65 being due to market technicals and unreflective of fundamentals, as well as the support for rates volatility from uncertainty around the pace and extent that policy rates decline rather than the direction of travel, which is clear cut.
/jlne.ws/3X9TqJI
0DTE options: should you bet on America's favourite?; Zero-days-to-expiration (0DTE) options are popular with US traders seeking high leverage, but consistent profits by betting on short-term market direction are slim
Theo Casey - MoneyWeek
The S&P 500 index tends to rise or fall half a per cent in a day âEUR" a swing of 50 points or so. That may not mean much to a buy-and-hold investor but, to a trader, it's enough for a spectacular gain if they employ sufficient leverage. With 20:1 leverage, for example, that half a per cent move in the index means a 10% move in the value of your position.
/jlne.ws/3Z5VHZ7
Short Seller Interest in Sweden's Fortnox Surges After CEO Exit; Shares out on loan have almost doubled since CEO resignation; Fortnox shares have only buy and sell ratings, with no holds
Isolde MacDonogh and Celine Imensek - Bloomberg
Short sellers are zeroing in on Swedish accounting software company Fortnox AB after the sudden resignation of the chief executive who oversaw a huge rally in its shares. The percentage of Fortnox shares out on loan - a common indicator of short interest - has almost doubled since Aug. 13, when the departure of CEO Tommy Eklund was announced. As of Wednesday, shares out on loan represented about 8.7% of Fortnox's free float, data from S&P Global Market Intelligence show.
/jlne.ws/47eZzJy
Leveraged Nvidia ETF issuers saw trading surge in bearish products ahead of earnings
Suzanne McGee - Reuters
Interest in leveraged exchange-traded funds that allow investors to profit when shares of Nvidia fall grew steadily ahead of the chipmaker's quarterly results, according to data from some of the companies that issued the products.
Nvidia, which in June eclipsed Microsoft as the world's most valuable company, dominates the major stock indexes, making its quarterly results an increasingly high-stakes market event.
/jlne.ws/4dH1okF
| | | | | | Exchanges | | | Cboe Global Markets has agreed to acquire a 14.8% minority equity ownership stake in Japannext Co., Ltd., a provider of financial services and market solutions, by purchasing shares from SBI Holdings Inc. This acquisition will enhance Cboe's involvement in the alternative market space, with the transaction subject to regulatory approval. ~JJL
Cboe Acquires 14.8% Minority Ownership Stake in Japannext
Cboe
/jlne.ws/3ALmTST
| | | | | | Regulation & Enforcement | | | Statement of Commissioner Caroline D. Pham on Innovation and Market Structure
CFTC
Commodity Futures Trading Commission (CFTC) Commissioner Caroline D. Pham is renewing calls for open public engagement by the CFTC on evolving trends and innovation in market structure. Her statement comes as the CFTC approved Kalshi Klear LLC's registration as a Derivatives Clearing Organization (DCO). "There's no doubt that we are seeing a renaissance in markets, ushered in by new technology that enables direct access and continuous all-to-all trading. What and how participants can buy, sell or trade-and with who-is changing rapidly. These new products and markets present new opportunities that are more accessible to more people, as well as risks. As U.S. regulators, we must recognize the trends in democratization of markets or we will be left behind. It is time for the Commission to take a forward-looking approach to prepare for the future by developing a robust administrative record with studies, data, expert reports, and public input.
/jlne.ws/3Z8mq7p
CFTC Awards Over $4 Million to Insider Whistleblower
CFTC
The Commodity Futures Trading Commission today announced it awarded over $4 million to an insider whistleblower who provided information that led the Division of Enforcement (DOE) to open an investigation into ongoing misconduct. The whistleblower shared knowledge about the complex products and transactions involved in the misconduct.
/jlne.ws/4cOnzV0
CFTC Orders Nasdaq Futures, Inc. to Pay $22 Million for Core Principle Violations, Failing to Fully Disclose Incentives, Providing False and Misleading Information
CFTC
The Commodity Futures Trading Commission today issued an order filing and settling charges against Nasdaq Futures, Inc., formerly a designated contract market (DCM). The order finds Nasdaq Futures, Inc. failed to properly establish, monitor, or enforce rules related to an incentive program Nasdaq Futures, Inc. offered to certain traders on its DCM. The order also finds Nasdaq Futures, Inc. did not fully disclose this incentive program's details to the CFTC or the public consistent with the requirements of the Commodity Exchange Act (CEA) and Commission Regulations. In addition, the order finds Nasdaq Futures, Inc. made false and misleading statements to the CFTC regarding the incentive program. The order requires Nasdaq Futures, Inc. to pay a $22 million civil monetary penalty.
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Editor-in-Chief
| | | Jeff Bergstrom
Editor
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