 | | | | | | | | November 21, 2024 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | 
Catherine Yoshimoto, Director of Product Management, FTSE Russell, Talks With JLN About Investing and Listing Trends
JohnLothianNews.com
FTSE Russell this year is celebrating the 40th anniversary of the launch of Russell Indexes, and Catherine Yoshimoto, Director of Product Management at FTSE Russell, was in Chicago for a special event at the Cboe to mark the occasion. JLN met up with her downtown on Tuesday, November 12th for a chat. Last June, FTSE Russell celebrated the 35th anniversary of the annual reconstitution of the Indexes, which have been rebalanced annually since 1989. Cboe is licensed to offer options on the Russell Indexes, and the CME offers the futures on the Russell Indexes.
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| | | | | | Lead Stories | | | Crypto traders are betting on bitcoin at $174,000 in 2026. What options on BlackRock's bitcoin ETF tell us.; The largest crypto hit a record high just shy of $95,000 on Tuesday
Frances Yue - MarketWatch
Welcome back to Distributed Ledger. This is Frances Yue, crypto reporter at MarketWatch.
Bitcoin hit a record high at $94,963 on Tuesday, after the Nasdaq started to allow trading of options on BlackRock's iShares Bitcoin Trust for the first time on the same day.
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Options traders are chasing the stock-market rally with the S&P 500 near record highs
Joseph Adinolfi - MarketWatch via MSN
Options traders have continued to chase the rally in U.S. stocks, stuffing dealers' books with upside risk in need of hedging as the S&P 500 nears all-time highs, according to data from Nomura's Charlie McElligott.
As a result, dealers' net delta exposure has risen to $10.8 billion, the highest on record, according to McElligott's data.
/jlne.ws/415kMUW
Bitcoin Rises to Record With MicroStrategy Stepping Up Purchases; Nasdaq listed options on the $44 billion iShares Bitcoin ETF; Investors are betting on further record highs for the token
Suvashree Ghosh and Emily Nicolle - Bloomberg
Bitcoin climbed to a record high for a second consecutive day, with MicroStrategy Inc. accelerating the pace of its massive purchases of the cryptocurrency. The largest publicly traded corporate holder of Bitcoin announced Wednesday that it was increasing the amount of convertible senior notes it plans to sell to fund additional purchases of the token by almost 50% to $2.6 billion. MicroStrategy, which announced earlier this week that it bought $4.6 billion of the token, owns more than $30 billion.
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****** If Michael Saylor's firm were a house built by one of the three little pigs, what would it be built with? Forget that. The better question is what techniques were used or are being used to build it. ~JJL
Nasdaq Listed IBIT Options End First Day in Top 1% of all Options Products Traded
Nasdaq Newsroom
On November 19th, Nasdaq in partnership with BlackRock, listed options on the iShares Bitcoin Trust ETF (IBIT). The product traded 353,716 contracts on its opening day, placing it in the top 1% of all options products on the market. These options not only provide market participants with a novel way to integrate digital assets into their portfolios but also introduce an advanced risk management and hedging tool for Bitcoin trading, advancing the maturation of the entire ecosystem.
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Record Bitcoin Run Sees US ETF Assets Surge to Over $100 Billion; The ETFs reached the milestone just 10 months after launching; Bitcoin is climbing closer to the landmark $100,000 level
Sidhartha Shukla and Suvashree Ghosh - Bloomberg
US exchange-traded funds investing directly in Bitcoin surpassed $100 billion in total assets as the original cryptocurrency extended a record-breaking rally. The group of 12 Bitcoin ETFs from issuers including BlackRock Inc. and Fidelity Investments swept to the milestone 10 months after a January debut, ranking them among the most successful fund category launches ever.
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Carson Block Expects More Anti-Short-Seller Rhetoric Under Trump
Sam Nagarajan - Bloomberg
Muddy Waters Capital's Chief Executive Officer Carson Block expects more rhetoric against short sellers during Donald Trump's administration. In an interview Thursday with Bloomberg Television's Francine Lacqua, Block said the populist playbooks of Elon Musk and Trump are now aligned, and both have blamed short sellers in the past for declines of Tesla Inc. and Trump Media & Technology Group Corp. shares. "We've already had some rhetoric, we might have some more anti-short seller rhetoric," he said, while noting that he doesn't think Trump and Musk believe short sellers are responsible for their company stocks falling.
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*******Stocks are only allowed to go up from now on.~JJL
| | | | | | Exchanges | | | MIAX Receives Editors Choice Award for Outstanding Futures and Options Trading Venue at The Trades Leaders in Trading Awards 2024
MIAX
Miami International Holdings, Inc. (MIH), a technology-driven leader in building and operating regulated financial markets across multiple asset classes, today announced that its MIAX exchange received the Editors' Choice Award for "Outstanding Futures and Options Trading Venue" at The Trade's Leaders in Trading Awards 2024.
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CME Group Adjusted Interest Rate Total Return Futures Reach Record Open Interest, Volume
CME Group
CME Group, the world's leading derivatives marketplace, today announced that its suite of Adjusted Interest Rate (AIR) Total Return futures reached an open interest (OI) record of 710,358 contracts (equivalent to $224 billion notional) on November 20.
In addition, AIR Total Return futures average daily volume (ADV) stands at a record 11,600 contracts for 2024, up 152% year-over-year.
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SIX Achieves Science-Based Targets Initiative (SBTi) Approval for Emissions Reduction Goals; SIX announces SBTi approval for its emissions reduction targets, committing to net-zero by 2050 and reinforcing its support for a low-carbon and climate-resilient economy.
SIX
SIX is pleased to announce the approval of its near- and long-term emissions reduction targets by the Science Based Targets initiative (SBTi), marking an important step in our commitment to addressing climate change. This validation from SBTi confirms that the targets submitted by SIX meet the SBTi Corporate Net Zero Standard, reflecting the ambition and dedication behind our climate objectives and for a low-carbon and climate-resilient economy.
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| | | | | | Regulation & Enforcement | | | IOSCO Publishes Consultation Report on Pre-Hedging; Report assesses potential conduct and market integrity issues associated with the practice of pre-hedging
IOSCO
IOSCO has today published a Consultation Report inviting feedback on its recommendations relating to pre-hedging practices. Pre-hedging is used by dealers to manage risks associated with anticipated wholesale principal orders in relation to primary market offerings and secondary market transactions. This can occur across various markets, including securities and derivatives, on trading venues and over the counter (OTC) markets. It encompasses a range of asset classes such as equities, fixed income, currencies and commodities.
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Archegos hedge-fund founder Bill Hwang gets 18 years in prison for massive fraud
Associated Press via MarketWatch
The founder of Archegos Capital Management, a hedge fund, was sentenced to 18 years in prison on Wednesday for securities and market manipulation fraud in a scheme that prosecutors said cost global investment banks billions of dollars.
Bill Hwang was told the length of the prison term in Manhattan federal court after he told Judge Alvin K. Hellerstein that he felt "really terrible for what happened at Archegos," alluding to the fund's demise over three years ago.
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| | | | | | Technology | | | Tradewell Technologies named FIA's 2024 Innovator of the Year
FIA
FIA today announced the winners of its annual pitch competition for startups at the FIA Expo. The pitch competition is part of FIA's Innovators Pavilion, a platform for introducing startups to trading firms, clearing brokers, exchanges and other firms active in the global derivatives markets.
The winners were selected by a panel of six judges with expertise in evaluating emerging solutions in capital markets. The judges based their decisions on presentations given by each startup during the pitch competition, which took place in two stages on November 19 and 20.
This year's winner was Tradewell Technologies, a startup based in New York and London that is bringing algorithmic trading tools to the corporate bond market. The judges commended the company for its potential to transform the way that asset managers execute their trades in corporate bonds and bring greater efficiencies to the work flow in that market, and potentially other fixed income markets around the world.
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| | | | | | Moves | | | Hedge Fund Two Sigma Cuts 200 Staff After Strategic Review
Sheryl Tian Tong Lee and Hema Parmar - Bloomberg
Two Sigma Investments will dismiss roughly 200 employees after the firm's new co-chief executive officers conducted a wide-ranging review of the hedge fund's business. No portfolio managers were included in the dismissals, according to a person familiar with the matter, who asked not to be identified discussing personnel information. Thursday's cuts represent about 10% of the firm's roughly 2,000 employees.
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| | | | | | Strategy | | | Ranking the Volatility of Exchange-Traded Funds
Michael "Dr. Data" Rechenthin - tastylive (Video)
How to trade small caps and tech ETFs ahead of Nvidia earnings, plus two options trade ideas
We pulled the implied volatility for some of the biggest exchange-traded funds (ETFs) and ranked them from the highest volatility to the least. Small caps and tech have been the most volatile. If you're considering investing in either of these indices, you might want to sell a put option instead-that approach enables you to earn a premium while potentially entering the position at a lower cost! Or consider a covered call, which is buying the stock and selling a call.
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Salesforce Option Trade Banks On Pre-Earnings Volatility
Gavin McMaster - Investor's Business Daily
Salesforce (CRM) is a highly rated stock with an outstanding three-year EPS growth rate of 28% and a three-year sales growth rate of 15%.
There is also some volatility skew due to earnings on Dec. 3, with short-term options showing higher implied volatility than long-term options.
One way to take advantage of this skew is via a diagonal put spread.
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UBS Says Gold Is Better Hedge Than Bitcoin
Bloomberg (Video)
UBS Global Wealth Management chief investment officer Themis Themistocleous discusses the bitcoin rally and what it could mean from a portfolio investment perspective. Bitcoin is "very volatile" and other hedges "like gold" could prove to be "much more effective" and have "lower volatility," Themistocleous tells Bloomberg Television. "It's not an asset that we can recommend to our private clients."
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The Trump Trade Is Getting Hazy. Where the Market Goes Next.
Patti Domm - Barron's
The stock market's wobbly behavior may prompt investors to start selling, but there are few signs the bull market will end anytime soon.
Sure, stock market turbulence could increase in 2025, and the market's high valuations make it ripe for pullbacks. But the positives of the Trump trade are likely to drive stock prices higher at least through the first part of next year.
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| | | | | | Miscellaneous | | | Wealthy Investors May Be More Prone to Investment Bias
Anirban Bose - Barron's
Global market volatility has been on a roller coaster in the last few months, but recently we've seen the Dow Jones Industrial Average jump and the S&P 500 repeatedly hit records. It's a stark contrast to August's selloff across the U.S., Europe, and Asia. Today we're also seeing inflation show signs of cooling as the Federal Reserve slowly starts to cut rates. We're also seeing the new presidential administration and policy changes take shape as the inauguration gets closer.
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The Trump Stock Euphoria Starts to Fade; Tariffs, deficits and stretched valuations give Wall Street pause
Jack Pitcher - The Wall Street Journal
Can the postelection market rally continue? Some on Wall Street are skeptical.
Investors cheered the unexpected Republican sweep of the presidency and both houses of Congress, salivating over the potential for new pro-business policies. Stock indexes set records, and stock funds posted historically high inflows.
That rally has faded as President-elect Donald Trump fills out his cabinet and analysts grasp for policy details. Perhaps the most crucial question for markets: How serious is Trump about tariffs, which are widely regarded as inflationary and could reach their highest level since the 1930s if delivered as promised?
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