| September 08, 2022 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | In an email, Cboe wrote: Cboe joined other market participants today in observing a one-minute moment of silence at 3:00 p.m. ET to pay respect to Queen Elizabeth II, who was the longest reigning British monarch, and to extend condolences to the Royal Family.
Tomorrow (Friday 9/9) morning, in commemoration of the 21st anniversary of the September 11th attacks and honoring the victims, survivors, and their families, Cboe plans to observe a one-minute moment of silence at 9:03 a.m. ET, coinciding with the time when the second plane hit the second tower of the World Trade Center in New York City.
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MWE SHORT: Evelin Kaup - Is FinTech a Threat to Banks?
JohnLothianNews.com
Evelin Kaup of Nordnet said the question of whether fintech is a threat to banks is being discussed at nearly every industry event these days. So far, the fintech companies have said yes while the banks have been saying no. But that may be changing.
Watch the video »
| | | | | | Lead Stories | | | Crash-Obsessed Traders Splurge on Options at Two-Decade High
Lu Wang - Bloomberg
Seasoned investors, staring at a world clouded by war, inflation and economic uncertainty, are buying catastrophe insurance at a record clip.
Institutional traders paid $8.1 billion to initiate purchases of equity puts last week, the highest total premium in at least 22 years, Options Clearing Corp. data compiled by Sundial Capital Research show. Adjusted for market capitalization, demand for hedges matches levels from the 2008 financial crisis.
/jlne.ws/3eDk9Ms
Brussels ignores derivatives at its peril amid energy crisis
Gillian Tett - Financial Times
When European leaders meet in Brussels on Friday to tackle the continent's energy crisis, politicians will be focused on windfall taxes and energy price caps. And no wonder: spiralling electricity costs are creating mounting pain for households and businesses â and political upheaval.
However, investors should keep an eye on another item on the agenda: their approach to energy derivatives markets, clearing houses and exchanges. This might seem arcane but the issues now bubbling in the derivatives sphere represent another potential time bomb for Europe â one that needs to be urgently addressed.
/jlne.ws/3qre1JU
Volatility Hits US Stocks With Hawkish Fedspeak: Markets Wrap
Rita Nazareth - Bloomberg
Volatility gripped the stock market as unsurprising remarks from Jerome Powell and his colleagues did little to alter bets on another super-sized rate hike during the Federal Reserve's September gathering.
The S&P 500 came back higher after swing between gains and losses all day as the Fed's boss just reprised his hawkish views from the Jackson Hole conference in late August, saying officials are strongly committed to their fight against inflation. The rate of the policy-sensitive two-year note jumped by as much as seven basis points to 3.5%. Swap traders priced in odds of around four-in-five the Fed will implement a 75-basis-point hike on Sept. 21 instead of just 50 basis points.
/jlne.ws/3Ro24Ap
| | | | | | Exchanges | | | CME Group to Launch E-mini Nasdaq-100 Tuesday and Thursday Weekly Options on October 3
CME Group
CME Group, the world's leading derivatives marketplace, today announced it will expand its suite of E-mini Nasdaq-100 options with the launch of Tuesday and Thursday Weekly options on October 3, pending regulatory review. These new weekly options contracts will complement the existing Monday, Wednesday and Friday Weeklies, End-of-Month and Quarterly options on Nasdaq-100 futures.
/jlne.ws/3cXemAI
CME Group continues SOFR conversions as demand grows; Following a strong August, CME Group will convert its Eurodollar futures and options open interest into SOFR contracts from 14 April 2023.
Laurie McAughtry - The Trade
CME Group plans to convert its Eurodollars open interest (OI) to SOFR contracts from April 2023, as client demand outpaces that for Eurodollars, with SOFR options also added to the group's portfolio margining solution. "SOFR futures and options are now the leading liquidity pool, as open interest has reached approximately 19 million contracts and volume has significantly outpaced Eurodollars," said Agha Mirza, global head of rates and OTC products at CME Group. "Our proposed conversion date will help our clients complete their operational work as early as possible in the transition process, while closely aligning with the recently published industry timelines for over-the-counter interest rate swaps."
/jlne.ws/3RuLXB1
Cboe and NEO Dual Launch New Suite of Women-Led Sustainable ETFs in the U.S. and Canada
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced that two of its exchanges have listed a new suite of sustainable ETFs from Emerge. The investment strategies are available in both U.S.- and Canada-domiciled funds, marking Cboe's first coordinated launch of ETFs on both sides of the border.
The suite of Emerge EMPWR ETFs begins trading simultaneously on two of Cboe's stock exchanges - Cboe BZX Exchange in the U.S., and the NEO Exchange in Canada - under the following respective U.S. and Canadian symbols. The U.S. funds are managed by Emerge Capital Management Inc., and the Canadian funds are managed by Emerge Canada Inc.
/jlne.ws/3qmUSse
Data Spotlight - Wheat options trading surges at Euronext; Physical holders turn to options in face of higher margin requirements
Kirsten Hyde - FIA
Euronext's milling wheat derivatives market, the benchmark for the pricing of wheat in Europe, has seen a surge of activity in its options contracts this year, according to data on trading volume and open interest. The rise comes as war disrupts production in Ukraine, one of the largest wheat producers in Europe, and physical hedgers adjust to higher margin requirements. The number of milling wheat options traded on Euronext has exploded this year. In July, the volume of trading reached 273,405 contracts, a rise of 82.6% from 149,735 contracts in July 2021 and the highest monthly total in at least four years. For the first seven months of the year, volume jumped by 68% to 1.62 million contracts, up from 965,049 contracts during the same period a year ago.
/jlne.ws/3RPjdD3
Initial Listing of Tuesday Weekly Options and Thursday Weekly Options on E-mini Nasdaq-100 Index Futures Contracts
CME Group
Effective Sunday, October 2, 2022 for trade date Monday, October 3, 2022, and pending all relevant CFTC regulatory review periods, Chicago Mercantile Exchange Inc. ("CME" or "Exchange") will list Tuesday Weekly Options and Thursday Weekly Options on E-mini Nasdaq-100 Index Futures contracts (the "Contracts") for trading on the CME Globex electronic trading platform ("CME Globex") and for submission for clearing via CME ClearPort as more specifically described below.
/jlne.ws/3Rr93sd
Cboe Global Markets to Present at the Barclays Global Financial Services Conference on September 12
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced that Ed Tilly, Chairman and Chief Executive Officer, and Brian Schell, Executive Vice President, Chief Financial Officer and Treasurer, will present at the Barclays Global Financial Services Conference on Monday, September 12 at 12:00 p.m. ET. The webcast and replay of the presentation will be accessible at www.cboe.com in the Investor Relations section, under Events and Presentations. The archived webcast is expected to be available within an hour of the presentation.
/jlne.ws/3D82x5o
ErisX Announces Settlement Service for Over-The-Counter Crypto Transactions
Cboe
ErisX, a Cboe Global Markets company, today announced it has introduced the ErisX Settlement Service, a new solution designed to help remove settlement risk for over-the-counter (OTC) crypto transactions. The new offering expands ErisX's suite of tools for institutional investors, enabling them to settle OTC trades with other ErisX customers using a transparent U.S. licensed crypto spot market.
/jlne.ws/3QqelmG
Tradeweb Reports Total August Trading Volume Of $23.4 Trillion With 13.0% YOY Increase In Average Daily Volume
Tradeweb
Average daily volume (ADV) for the month was $1.02tn, an increase of 13.0 percent (%) year-over-year (YoY). Average daily trades for the month totaled 93,860. Tradeweb's diversified offering across products, geographies and client sectors supported double-digit growth, amidst a complex macroeconomic background driven by evolving central bank policy, sustained elevated volatility, economic concerns and a stronger dollar.
/jlne.ws/2TwpBEI
| | | | | | Regulation & Enforcement | | | SEC's Gensler Supports Commodities Regulator Having Bitcoin Oversight
Andrew Ackerman - The Wall Street Journal
Securities and Exchange Commission Chairman Gary Gensler signaled that he would support Congress handing more authority to the SEC's sister markets regulator to oversee certain cryptocurrencies such as bitcoin.
Mr. Gensler, speaking at an industry conference, said Thursday he looked forward to working with Congress to give the Commodity Futures Trading Commission added power, to the extent the agency needs greater authority to oversee and regulate "nonsecurity tokens...and the related intermediaries."
/jlne.ws/3QuGNnr
| | | | | | Strategy | | | Market Volatility Spells Opportunity for Options-Savvy Investors
Steven M. Sears - Barron's
Once again, the stock market is confronting a dramatic shift.
The illusion that inflation was peaking, and that the Federal Reserve wouldn't raise interest rates so aggressively, was recently demolishedâand this means stock valuations are aggressively open to bearish interpretations.
Jerome Powell, the central bank's chairman, bluntly said at the Fed's summer retreat in Jackson Hole, Wyo., that ridding the economy of inflation will be painful. Ever since, the stock market has behaved like a dog afraid of its master. Its fear gauge, the Cboe Volatility Index VIX - 2.64% , or VIX, has advanced in anticipation of another beating.
/jlne.ws/3BqXyvg
ESG Sector ETFs Could Be Volatile. What to Do Instead.
Debbie Carlson - Barron's
Hot money has come to sustainable investing.
Despite lagging behind the market in the first half of 2022, investors in sustainable funds weren't more likely to ditch their holdings versus their traditional-investing counterparts. But one area was more susceptible to turnover: sector exchange-traded funds.
/jlne.ws/3B3NmaU
An 'oversold' rally in stocks may be in the works
Lawrence G. McMillan - MarketsWiki
The stock market has been trading lower since the mid-August top was established near 4,300 points on the S&P 500 Index SPX, 0.30%.
The blue downtrend line on the accompanying S&P 500 chart, below, shows that this is still a bear market. On Tuesday (Sept. 6), the benchmark index traded at a new relative low but oversold conditions were building.
/jlne.ws/3Db9ToU
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