 | | | | | | | | November 13, 2024 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | India's National Stock Exchange (NSE) is ending weekly options contracts on the Nifty Bank Index, which helped make India the world's largest options market by trading volume, Bloomberg reported. This move is part of regulatory efforts to curb excessive growth in equity derivatives, which surged over 40 times in five years, with peak trading reaching $6 trillion in notional value. The Securities and Exchange Board of India introduced restrictions limiting exchanges to one weekly option each, aiming to shift household investments from speculative trading back to the economy. NSE's Nifty 50 weeklies and BSE's Sensex weeklies will continue, but Nifty Bank weeklies, once a popular hedging tool, will end, likely reducing derivatives trading volume and impacting exchanges and brokers. Traders are expected to redirect activity to monthly contracts and single-stock options, although some volume may be lost. ~JJL
| | | | | | Lead Stories | | | Contract That Made India Top Options Market Has Last Trading Day
Savio Shetty - Bloomberg
Wednesday will mark the end of the contract that turned India into the world's largest options market. The National Stock Exchange of India Ltd. is discontinuing weekly contracts on the Nifty Bank Index of major lenders - derivatives that represented about one-third of total index options volume - as the nation's regulator is seeking to rein in an industry that grew more than 40 times over the past five years. At the peak in February, overall options trading reached $6 trillion in notional value - larger than the size of the Indian economy.
/jlne.ws/3Z3RnZZ
Bitcoin Traders Pile Into $100K CME Options as Price Climbs Through $93K: CF Benchmarks; BTC blasted through the $90,000 resistance level on Wednesday, defying the dollar strength.
Omkar Godbole - Coinbase
There seems to be no stopping the bitcoin (BTC) freight train. The largest cryptocurrency blasted through the $90,000 resistance level, hitting a new record above $93,000 while traders on the Chicago Mercantile Exchange (CME) loaded up on bets that stand to profit on prices rising into six figures.
According to CF Benchmarks, traders are flocking to the $100,000 call option on the CME, a location favored by institutional investors, following the lead of their Deribit-based counterparts. A call option gives the purchaser the right, but not the obligation, to purchase the underlying asset at a predetermined price on or before a specific date. A call buyer is implicitly bullish on the market.
/jlne.ws/40Ks28A
Crypto ETF Provider Bitwise Buys Ether Staking Service Attestant; Bitwise will manage $10 billion in assets after the deal; Terms of the equity and cash transaction weren't disclosed
Olga Kharif - Bloomberg
Crypto exchange-traded fund issuer Bitwise Asset Management Inc. has acquired Attestant, an Ethereum staking service in a bid to expand beyond its core businesses with the digital-asset sector seen by advocates as being on the verge of transformation. Terms of the cash and equity transaction weren't disclosed. The London-based firm handles about $3.7 billion in assets for institutional investors outside the US who wish to earn rewards by using their Ether to help validate transactions on the Ethereum blockchain. Attestant's 11 employees will join Bitwise.
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Buffett's Berkshire Is Being Packaged Into a Leveraged ETF; Berkshire ETF would use swaps to magnify potential returns; South Korean brokerage teaming up with US firm to launch ETF
Miles Weiss and Youkyung Lee - Bloomberg
Warren Buffett created Berkshire Hathaway Inc.'s Class B shares almost 30 years ago to stymie money managers who sought to split the high-priced conglomerate's stock.
One of South Korea's largest retail brokerages now plans to package the Class B shares into an exchange-traded fund turbocharged with derivatives, another move that Buffett might not like.
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CEO Of Cboe Sits Down With Benzinga To Talk State Of The Markets
Johnny Rice - Benzinga (Video)
Fred Tomczyk, CEO of Cboe Global Markets Inc., was interviewed by Benzinga at the HOOD Summit, presented by Robinhood.
Cboe Global Markets is the world's leading derivatives and securities exchange network - operating in 27 markets globally - and facilitates trading in options, futures, equities, FX and more for all investors. The company has long been an innovator in financial products.
A year into Mr. Tomczyk's tenure as CEO, the firm appears to be firing on all cylinders. The CEO spoke about his firm's incredible growth and what he sees as the dominant trends in the upcoming year.
/jlne.ws/3YQh8eS
| | | | | | Exchanges | | | Miami International Holdings Participates in the 2024 Ring the Bell for Climate Initiative aligned with COP29
MIAX
Miami International Holdings, Inc. (MIH), a technology-driven leader in building and operating regulated financial markets across multiple asset classes, announced it ceremoniously rang the opening bell at its Princeton, N.J. headquarters in honor of The World Federation of Exchanges' (The WFE) Ring the Bell for Climate initiative on November 12, 2024.
"The impact of climate change can be seen both globally and in our own backyards, and MIH's participation in this year's Ring the Bell for Climate initiative is intended to raise awareness of the important climate-related issues facing our industry," said Thomas P. Gallagher, Chairman and CEO of MIH. "MIH employees are actively involved in addressing our climate impact through initiatives focused on reducing our carbon footprint, waste reduction, office building efficiency and the launch of new climate-related products."
/jlne.ws/48Rkwes
| | | | | | Regulation & Enforcement | | | 'Bitcoin Jesus' Fights IRS Tax Evasion Case From Spanish Island; Roger Ver charged with underreporting value of token holdings; Longtime crypto investor renounced US citizenship in 2014
David Voreacos and Olga Kharif - Bloomberg
To his followers, Roger Ver is known as Bitcoin Jesus, a charismatic advocate of the cryptocurrency that is once again captivating investors with record-breaking gains. But to the Internal Revenue Service, Ver symbolizes a new target in the digital age: a crypto holder suspected of failing to pay taxes after selling tokens. US prosecutors charged Ver this year with evading more than $48 million in taxes for selling $240 million in tokens. It's the most prominent case dealing solely with tax fraud and digital-asset sales, and marks a break from the tradition of prosecutors tacking tax charges onto crypto cases for crimes like money laundering, ransomware attacks and investor scams.
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| | | | | | Moves | | | Millennium Cuts One of Its Priciest Trading Hires Within a Year; John Curtice was promised a potential payout of $50 million; Millennium reduced his capital from $2 billion to $1.5 billion
Nishant Kumar - Bloomberg
John Curtice, one of Millennium Management's most expensive recent hires, has departed within a year of joining Izzy Englander's hedge fund firm.
Curtice, who joined earlier this year from rival ExodusPoint Capital Management, exceeded Millennium's guidance on his risk limits, according to people with knowledge of the matter. This led to the firm discussing the matter with Curtice on several occasions, the people said.
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| | | | | | Strategy | | | The Trump Administration Will Shake Up Options Markets. How to Profit.
Steven M. Sears - Barron's
Donald Trump's re-election may profoundly affect what works in the stock and options markets.
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VIX signals stock rally 'healthy' for now. Here's how to use it to spot a bubble.; 'There seems to be a lot of enthusiasm for stocks post-election and the VIX will be one way we monitor U.S. equities into year end,' says DataTrek Research's Nicholas Colas
Christine Idzelis - MarketWatch
The recent surge in stocks on the heels of the U.S. election has so far coincided with a drop in Wall Street's fear gauge, as investors watch market volatility for clues as to whether the rally will hold up.
The Cboe Volatility Index fell 1.7% Tuesday to end at 14.71, below both its 200-day and 50-day moving averages, according to FactSet data. The index, which trades under the ticker symbol 'VIX,' had closed at about 15 on Monday.
/jlne.ws/4hJ1oDh
| | | | | | Miscellaneous | | | FIA announces 2025 Hall of Fame inductees
FIA
FIA has announced the names of six new members of theâEUR¯FIA Hall of Fame. The new members will be honored at an awards ceremony during FIA's 50th International Futures Industry Conference in Boca Raton, Florida, on 9-12 March 2025. "We established the FIA Hall of Fame to recognize the people who have made exceptional contributions to the growth and development of the listed and cleared derivatives industry," said FIA President and CEO Walt Lukken. "The 2025 group of inductees have provided exceptional leadership, wisdom and vision to propel our industry forward. We are honored to present them with this recognition."âEUR¯
The following leaders will join the 2025 Hall of Fame:âEUR¯âEUR¯
Mark Bagan, former MGEX CEO and MIAX executive (posthumous);âEUR¯ Laura Cha, former Chair of HKEX;âEUR¯ Terry Duffy, Chairman and CEO of CME Group;âEUR¯ Jeff Sprecher, Founder, Chair, and CEO of Intercontinental Exchange;âEUR¯ Debbie Stabenow, US Senator (MI) and Chair, Senate Agriculture CommitteeâEUR¯; Don Wilson, Founder and CEO, DRW.
/jlne.ws/3ULVwiI
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