| March 24, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Commodity Traders Sound Alarm on Plunging Market Liquidity
Archie Hunter and Will Mathis - Bloomberg
Whipsawing commodity prices and eye-watering margin calls are forcing traders to reduce their activity, driving liquidity out of markets and exacerbating price swings, according to some of the world's biggest trading houses.
"We're seeing clearly that liquidity in terms of being able to find buyers and sellers in distressed or highly volatile markets is becoming less," Engelhart Commodities Trading Partners Chairman and Chief Executive Officer Huw Jenkins said at the FT Commodities Global Summit in Lausanne, Switzerland.
/jlne.ws/36MgMyQ
LME Nickel Trading Surges by 15% Limit
Mark Burton and Jack Farchy - Bloomberg
Nickel surged by the 15% exchange limit for a second day in London, putting the spotlight back on bearish position holders just two weeks since the market was roiled by an historic short squeeze.
Nickel futures remained locked at the price limit by Thursday afternoon on the London Metal Exchange, as the latest spike extends a period of unprecedented turmoil for the market. Prices soared over 250% over two trading sessions in early March during the short squeeze centered on China's Tsingshan Holding Group Co., before the market was suspended.
/jlne.ws/3DaseAv
Investors Piling Into Gold ETFs Face a Surprising Tax Bill; Exchange-traded funds backed by physical gold are taxed at a higher rate than stocks of gold mining companies.
Kristine Owram and Claire Ballentine - Bloomberg
Gold exchange-traded funds are one of this year's hottest investments, with war, inflation and stock-market volatility sending people scrambling for safe havens. But those buying physical gold ETFs may face an unexpected tax burden.
/jlne.ws/36IHojY
Russia Stock Market Reopening as Traders Brace for Chaos
Ksenia Galouchko and Sydney Maki - Bloomberg
The Russian stock market is set to partially reopen Thursday, ending the nation's record long shutdown, with several measures in place meant to limit a renewed selloff.
When trading resumes at 9:50 a.m. in Moscow on Thursday for a shortened four-hour session, only 33 stocks will be active, including some of the nation's biggest companies, such as Gazprom PJSC and Sberbank PJSC. However, foreigners won't be allowed to sell equities in a ban scheduled to last until April 1, and short selling won't be permitted.
/jlne.ws/3tzr3Hl
Is the market volatility here to stay?
Business Insider
Volatility is how rapidly the prices of instruments change in the financial market over a period of time. These changes can be positive or negative. When the prices in the stock markets go up quickly, then it is positive and on occasions when they slide down, it is negative.
But when these changes occur often and are unpredictable, it is said the markets are volatile.
/jlne.ws/3IPXrKx
Market calm shows that wartime doesn't mean volatility
Gillian Tett - Financial Times
War is cruel. In their own way, so are markets. When Russia invaded Ukraine last month, global stock markets initially tumbled amid investor shock. The US benchmark S&P 500 plunged 15 per cent from its peak, while the Nasdaq Composite fell more than 20 per cent.
Since then, US equity markets have rallied and even European indices have rebounded. What is more remarkable and counter-intuitive is that traders are acting as if calmer times lie ahead.
/jlne.ws/3LdzSN7
| | | | | | Exchanges | | | Position Limit, Accountability Levels, and Large Trader Reporting Requirements in Connection with the Initial Listing of the Options on Micro Bitcoin Futures and Options on Micro Ether Futures Contracts
CME Group
In connection with the initial listing of the Chicago Mercantile Exchange Inc. ("CME") Options on Micro Bitcoin Futures and Options on Micro Ether Futures Contracts (the "contracts") on trade date Monday, March 28, 2022 (see SER-8939 published on March 1, 2022), please note in Appendix B of CME Submission No. 22-072 the corresponding spot-month position limits (Rule 559), accountability levels (Rule 560), aggregation allocations (Rule 559.D) and reportable levels (Rule 561) for the contracts.
/bit.ly/3Ld95QY
IRS Liquidity in Europe Grows as Demand for EU-based CCP Clearing Rises
Eurex
First published on DerivSource on 21 March 2022.
Increasing market volatility and the next phase of UMR are driving more IRS volumes into clearing in Europe. In this DerivSource feature, Max Verheijen, director, Financial Markets at Cardano and Tom Prickett, managing director at JP Morgan Chase describe their experiences with market liquidity and margin funding for their interest rate derivatives activities during recent times of volatility. These market participants, as well as Matthias Graulich, chief strategy officer, and Phil Simons, global head of Fixed Income Sales - Derivatives, Funding & Financing at Eurex, shed light on how additional services, such as cross margining, can help derivatives market participants successfully weather future periods of market stress and achieve greater operational, margin and funding efficiencies.
/bit.ly/3tAX2qM
| | | | | | Regulation & Enforcement | | | The SEC Wants to Stop Activism
Matt Levine - Bloomberg
The way activist investing works in the U.S. is generally that an activist investor quietly buys up a chunk of a company's stock, announces that she owns the stock, and goes to the company's managers asking them to change something about their strategy or operations. Sometimes the managers agree, there is a productive conversation, the activist helps the company improve, the stock goes up and eventually the activist sells at a profit. Sometimes the managers disagree, and the activist tries to pressure them into doing what she wants.
/jlne.ws/3NjSvkd
| | | | | | Technology | | | BrokerTec Integrates Relative Value Curve Spread Trading with Broadway Technology
CME Group
BrokerTec, a leading provider of electronic trading platforms and technology services in fixed income markets, today announced that it has partnered with Broadway Technology to make its Relative Value (RV) Curve spread trading functionality available on Broadway's Toc platform.
The integration provides mutual clients with access to the full RV Curve product suite to increase execution efficiencies by merging liquidity from BrokerTec's industry-leading central limit order book with a single-threaded matching engine to eliminate legging risk, provide inside liquidity, and increase matching opportunities when trading benchmark spreads.
/jlne.ws/37ZCqQI
| | | | | | Strategy | | | These Are Extraordinary Times for Stocks. How to Profit From the Fear.
Steven M. Sears - Barron's
Anyone who predicted that a pandemic would be followed by events that might spark World War III is probably in direct communication with the Creator or the Devil.
Just as we thought the Covid-19 crisis was ending, Russia invaded Ukraine, and militaries that have long focused on battling terrorism might now be drawn into a land battle in Eastern Europe between a superpower and a smaller, but fierce, nation.
/jlne.ws/3IwePni
European Fuel Markets Chaotic as Russian Supply Decides Prices
Alaric Nightingale - Bloomberg
The invasion of Ukraine has created a defining question for traders of fuels in Europe: should the region's benchmark prices be allowed to reflect the price of deeply discounted cargoes from Russia -- or not?
With a self-imposed European buyers' strike of Russian petroleum in place following the attack, it's not a straightforward one to answer because there's also no legal impediment on purchasing the country's supplies.
/jlne.ws/3tBSZdT
Opinion: The S&P 500 chart is still bearish despite the stock market's recent gains
Lawrence G. McMillan - MarketWatch
The S&P 500 index stretched its oversold rally about as far as it could. The question still remains as to whether it is just an oversold rally or the beginning of a new bull-market phase.
As we've said many times, oversold rallies typically die just above the declining 20-day moving average. This one has slightly exceeded its 20-day MA and bumped into its 200-day moving average. In doing so, it broke though the downtrend line that had been in force.
/jlne.ws/36vX2PY
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| | | Jeff Bergstrom
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