| June 27, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | The month-to-date percentage of SOFR options volume on the CME trading floor is 67.3%. Find out more about why SOFR options trading floor volume has increased by listening to my interview with MarkIV broker Mark LeeMaster about the Smart Confirm technology being used by fifty percent of the broker groups in the SOFR options pit. ~JJL
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Spider Rock's Annabelle Baldwin on block trading tools, a new options platform, becoming an ATS, and options on futures
JohnLothianNews.com
JLN spoke with Annabelle Baldwin, the chief revenue officer of Spider Rock, a Chicago-based proprietary trading firm, at the OIC Conference in Nashville. She spoke about how the company is building the next generation of trading tools as well as a new options platform to serve a broader set of institutional clients.
Watch the video »
| | | | | | Lead Stories | | | Crypto volatility, options expirations create perfect storm, Deribit says
Casey Wagner - Blockworks
With dropping volatility and looming end-of-quarter options contracts expirations, crypto markets are poised for an interesting week. Analysts say the recent rally has investors rethinking their positions. Exchange Deribit has around 150,000 bitcoin options contracts worth about $4.5 billion set to expire on Friday. The exchange also has about $2.3 billion worth of ether (ETH) options contracts expiring on the same date. Bitcoin (BTC) and ether were trading at $30,701 and $1,896, respectively, at time of publication.
/jlne.ws/3NsSqMa
Investors watch for quarter-end rebalancing in US stocks, bonds and options
Saqib Iqbal Ahmed - Reuters
Investors are watching a large hedged-equity fund's quarterly refresh of its options positions and quarter-end rebalancing by portfolio managers to potentially influence U.S. stock moves as the first half of the year winds down this week.
The nearly $16 billion JPMorgan Hedged Equity Fund , which holds a basket of S&P 500 (.SPX) stocks along with options on the benchmark index, is expected to roll its options positions on Friday.
/jlne.ws/43Sr6xP
The Stock Market Isn't as Calm as It Seems
Gunjan Banerji and Eric Wallerstein - WSJ
Don't be fooled by the sleepy stock market.
Stocks have quietly climbed through the first half of the year, sending the S&P 500 up 13% and measures of market volatility to depths not seen since before the start of the Covid-19 pandemic.
The Cboe Volatility Index, or the VIX, has fallen to around 14, near the lowest levels since February 2020. Known as Wall Street's fear gauge, the index tracks the price of options often used to hedge against stock-market downturns.
/jlne.ws/430vklU
Whale Drives Ether-Bitcoin Volatility Spread Lower Ahead of Options Expiry
Markets Insider
Options contracts tied to ether (ETH) worth $2.3 billion are set to expire on dominant crypto derivatives exchange Deribit this Friday.
Ahead of the pivotal quarterly settlement, the market is witnessing a low spread between Deribit's forward-looking 30-day implied volatility index for ether (ETH DVOL) and bitcoin (BTC DVOL).
According to Deribit, the negative spread indicating relative ether stability results from an increased institutional interest in "overwriting" or selling ether call options. The dynamic has set the stage for major market shifts around Friday's expiry.
/jlne.ws/3PsmES6
Odey Suspends Two Hedge Funds After Redemption Requests Surged
Nishant Kumar - Bloomberg
Odey Asset Management suspended two more funds, including its flagship hedge fund, after being hit by redemption requests from investors fleeing the firm following multiple sexual assault allegations against founder Crispin Odey.
The firm received withdrawal requests amounting to about 19% of the flagship Odey European Inc. hedge fund and 35% of the OEI Mac Inc. fund for their next dealing day on July 3, according to two separate letters to clients seen by Bloomberg. Crispin Odey managed the funds until he was removed from the partnership this month, with Freddie Neave taking over from him.
/jlne.ws/442cr37
Banking Crisis Will Mirror 2008 If Inflation Isn't Controlled: Top Expert
Jennifer Sor - Markets Insider
The banking crisis that unfolded earlier this year isn't over, and banks could be hit with losses akin to what was seen in 2008 if the Federal Reserve doesn't get inflation under control, according to Bank for International Settlements.
In its annual report published Sunday, the so-called bank for central banks pointed to the lasting ramifications of 2023's bank failures, starting with the collapse of Silicon Valley Bank in early March. SVB's implosion, sparked by losses on its bond holdings as interest rates rose and the value of its fixed income securities plummeted, snowballed into a wider regional bank crisis that resulted in the fall of Signature Bank and First Republic Bank.
/jlne.ws/3CLPIfT
| | | | | | Exchanges | | | Amid Record Demand, CME Group Announces Expansion of WTI Options
CME Group
CME Group, the world's leading derivatives marketplace, today announced plans to expand WTI Crude Oil options to include Monday and Wednesday expiries. Pending regulatory review, the new contracts will begin trading on July 31, 2023.
/jlne.ws/3XoHDHv
| | | | | | Regulation & Enforcement | | | Cboe BZX Exchange again seeking rule change for VanEck Bitcoin Trust
Kathie O'Donnell - Pensions & Investments
The Cboe BZX Exchange is once again asking the Securities and Exchange Commission for a proposed rule change to list and trade shares of the VanEck Bitcoin Trust, a filing on Cboe Global Markets' website shows.
The filing dated June 22 involving the VanEck Bitcoin Trust comes in the wake of BlackRock's June 15 filing with the SEC for a spot bitcoin ETF.
/jlne.ws/3pia9xT
| | | | | | Technology | | | Fidelity Digital-Backed Crypto Exchange EDX Drops Paxos for Anchorage
Katherine Doherty and Yueqi Yang - Bloomberg
EDX Markets, a recently launched crypto exchange backed by firms including Citadel Securities, Fidelity Digital Assets and Charles Schwab Corp., has dropped its plan to use Paxos as a custodian and is now in final talks with Anchorage Digital about a new partnership, according to people familiar with the matter.
/jlne.ws/3O0awGZ
| | | | | | Strategy | | | A summer battle of bulls and bears is brewing. Here's how to play both sides.
Barbara Kollmeyer - MarketWatch
The quarter is winding down and with it, a bit of steam for the stock market as some say investors are finally facing up to fading hopes for Fed rate cuts in 2023. The S&P 500 and Nasdaq Composite have each logged five losing sessions out of the last six.
Within those three months came one important move for the S&P. The index finally broke past the big resistance level of 4,200 in June, setting the "pressure point" for bulls and bears and creating some uncertainty for investors, noted a team at Evercore ISI led by Julian Emanuel.
/jlne.ws/3NQcQQw
Rupee slightly higher, options sellers reap benefits of low volatility
Nimesh Vora - Reuters
The Indian rupee inched up on Tuesday, thanks to the yuan-led recovery on Asian currencies on indications that China's central bank may be uncomfortable with the pace of the decline.
The rupee was at 81.9650 to the dollar by 11:02 a.m. IST, up from 82.04 in the previous session. The rupee's 30-day realised volatility remained below 3% and the 1-month implied volatility was at 3/3.2.
/jlne.ws/3CO1YfB
Huge Call/Put Ratio
Cboe (Video)
In #Vol411, Tim Biggam @Delta_Desk lets us know that this morning, the $VIX Index was back below the 14 level, gives us updates on #VIX #options and VIX #futures and more.
/jlne.ws/3CLSP7z
| | | | | | Miscellaneous | | | Pickleball Injuries May Cost Americans Nearly $400 Million This Year, According to UBS
Joe Weisenthal - Bloomberg
Earlier this month, shares of big health insurance companies fell after UnitedHealth Group Inc. warned that healthcare utilization rates were up. At a conference the company had said that it was seeing a higher-than-expected pace of hip replacements, knee surgeries and other elective procedures.
In a new note out Monday, UBS Group AG analysts led by Andrew Mok offer a surprising theory about one factor that could be driving a higher pace of injuries: pickleball.
/jlne.ws/3XuSUpE
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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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