| July 29, 2024 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | 
Volatility Insight of the Week: Soybean Oil volatility (SOVL), as measured by CME Group's volatility index (CVOL), has been rising following changes in refinery exemptions. Learn more about CVOL here. | | | | | | Lead Stories | | | Covid halted variance trading. Can Cboe revive the market?; With liquidity in variance swaps drying up, traders may finally be ready to give futures a shot
Helen Bartholomew - Risk.net
After two failed attempts at listing variance futures on the S&P 500, Cboe is taking a third run at convincing traders to adopt the contracts.
Twenty years after its first try, the exchange is betting a more user-friendly structure and new margin requirements for non-cleared trades will stimulate demand for a new version of a product it delisted in 2022.
/jlne.ws/3LIujbJ
Some $6 trillion of funds are about to shift - and here's where they may end up
Jamie Chisholm - MarketWatch
Where will $6 trillion of funds end up? It might not be stocks.
Early futures action indicate a positive start to Monday for stocks. The likely keys to whether the optimistic tone can continue this week will be big tech earnings and the outcome of central bank meetings.
/jlne.ws/4dmPVGt
US-listed crypto stocks retreat following Trump-fueled spike
Niket Nishant - Reuters
Shares of New York-listed crypto firms fell on Monday as bitcoin dipped after breaching the $70,000-mark for the first time since mid-June.
The sell-off erased gains from earlier in the session, when optimism fueled by Republican presidential candidate Donald Trump's pro-crypto speech lifted stocks.
/jlne.ws/3zZw2Hg
Traders may be jumping the gun once again by betting on aggressive Fed rate cuts; This would be the eighth time since the Fed started raising rates in March 2022 that traders have bet on dramatic cuts, only to walk that back
Joseph Adinolfi - MarketWatch
It is starting to look like traders may have once again jumped the gun by betting on aggressive Federal Reserve interest-rate cuts between now and the end of next year.
Traders are pricing in 175 basis points of cuts over the next 18 months, the most expected since early March, according to emailed commentary from Deutsche Bank's Jim Reid.
/jlne.ws/3A3ZRpY
Hedge Funds Post Biggest Retreat on Bearish Yen Bets Since 2011
Ruth Carson and Masaki Kondo - Bloomberg
Hedge funds beat a hasty retreat on bets against the yen as the once-beloved carry trade crumbled.
Leveraged investors slashed 56,639 net short positions on Japan's currency over two weeks to July 23, marking the biggest capitulation since early 2011, Commodity Futures Trading Commission data showed.
/jlne.ws/3SuLlxN
| | | | | | Exchanges | | | Retail Commercial Program
TMX
Bourse de Montreal Inc. (the "Bourse" or "MX") is pleased to announce the launch of its Retail Commercial Program (the "Program") for eligible Approved Participant ("AP") or Foreign Approved. Participant ("FAP") or Client sponsored by an AP or FAP. The Program is designed to encourage and support selected participants in their efforts to invest in the retail segment of the equity and ETF options market by allowing them to benefit from a reduced fee per contract in accordance with the terms and conditions set forth.
/jlne.ws/3WG0qz9
ASX launches Environmental Futures contracts
ASX
ASX today listed three Environmental Futures contracts, marking the next maturity phase for carbon and renewable energy markets in Australia and New Zealand. These new contracts allow participants to price and hedge emissions reduction risk amid the transition to a lower carbon economy.
/jlne.ws/4fnuQgU
One Trading receives AFM approval for European crypto derivatives trading; The approval from the Dutch Financial Markets Authority (AFM) makes One Trading the only perpetual futures trading venue within the EU and the first European cash-settled perpetuals platform.
Claudia Preece - The Trade
The AFM has granted crypto-asset exchange One Trading an Organised Trading Facility (OTF) license, making the trading venue the first regulated derivatives exchange in Europe accessible to retail clients. The approval makes the exchange the only perpetual futures trading venue within the EU and the first European cash-settled perpetuals platform.
/jlne.ws/4dcwTma
| | | | | | Regulation & Enforcement | | | US indicts Andrew Left in $16 million stock market manipulation scheme
Reuters
A federal grand jury has indicted prominent activist short seller Andrew Left on multiple counts of securities fraud for a long-running $16 million market manipulation scheme, the U.S. Justice Department said on Friday. The indictment, filed on Thursday, said Left "commented on publicly traded companies, asserting that the market incorrectly valued a company's stock and advocating that the current price was too high or too low," the Justice Department said in a statement.
/jlne.ws/3LCCM0h
| | | | | | Strategy | | | Use the sell-off in tech stocks as a chance to buy the dip, UBS says
Matthew Fox - Business Insider
Short-squeezes, call option activity, and bank hedging have fueled the rotational trade into small cap stocks, but that won't last forever, according to UBS.
"The positioning influence on the rotation trade will soon dissipate, as such technicals typically do after about a month," UBS said. "So, we think the environment remains favorable for quality tech stocks, and believe that investors should ensure they have sufficient exposure to AI beneficiaries within and outside the US."
/jlne.ws/3SsHktH
Tesla
Cboe (Video)
In #Vol411, Joel Hawthorne @louiswinthrop covers today's most active equity options (including $TSLA and $NVDA), this week's economic data and earnings (including $META and $AAPL) and more.
/jlne.ws/4dlMjo3
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| | | | John Lothian News (JLN) is the news division of John J. Lothian & Company, Inc. (JJLCO). The online media and financial services firm is staffed by derivatives industry, journalism and technology professionals. | | | | | | | John Lothian News Editorial Staff: | | | John Lothian
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Editor-in-Chief
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Editor
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