| December 09, 2021 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Currency Markets Volatility Surges Ahead of Central Banks' Decision Week
Vassilis Karamanis - Bloomberg
Currency traders are taking no chances when it comes to next week's policy decisions by the world's major central banks.
One-week volatility for euro and sterling has risen to multi-month highs, with meetings by the Federal Reserve, the European Central Bank and the Bank of England in focus. Currency hedging costs were already elevated as investors assess the risks from the omicron variant and whether existing vaccines prevent infections.
/bloom.bg/31JChO7
Market volatility could portend a retreat of liquidity
Mohamed El-Erian - Financial Times
As bouts of market volatility have become more common in recent weeks, it is clear that investor appetite to buy on dips, while still strong, will be tested when the US Federal Reserve withdraws support for asset prices.
For now, overall liquidity in markets remains high. While starting to taper, central bank asset buying programmes are still huge. But the sharp swings in markets experienced in recent weeks illustrate a phenomenon that we are likely to see more of: "illiquidity in the midst of liquidity" â a phrase I first heard from Gramercy's founder Robert Koenigsberger.
/on.ft.com/3Ix0aJI
The risk of regulators restricting options trading is rising, and that could be a problem for Robinhood and others
Seeking Alpha
Recent comments by FINRA and the SEC suggest that regulators may consider restricting the ability of brokerages to promote options trading to retail investors. If that were to happen, it could negatively impact the revenue of trading platforms including Robinhood (NASDAQ:HOOD), Schwab (NYSE:SCHW), SoFi (NASDAQ:SOFI), Interactive Brokers (NASDAQ:IBKR), E*Toro (NASDAQ:FTCV), and Morgan Stanley (NYSE:MS) owned E*Trade, as well as exchanges Cboe Global Markets (BATS:CBOE) and CME Group (NASDAQ:CME).
/bit.ly/3rPVGId
| | | | | | Exchanges | | | Cboe Global Markets Recognized as a Certified Transparent Companyâ¢
Cboe Global Markets, Inc.
Cboe now a Certified Transparent Companyâ¢;-- Ranks in top one percent for transparency of global public companies;-- Certification conducted by Transparency Investâ¢
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, is pleased to announce it has received designation as a Certified Transparent Company⢠from Transparency Invest, a company with a mission to accelerate the world's adoption of transparency.
/bit.ly/3dBjKX0
Zeta Markets Completes $8.5M Strategic Funding Round Led by Jump Capital
Zeta Markets
Zeta Markets ("Zeta" or "the Platform"), a cutting-edge decentralized finance (DeFi) futures and options exchange built on Solana, today announced that it completed a $8.5M strategic funding round led by Jump Capital.
/prn.to/3DyRrmz
CME Group Declares Annual Variable Dividend
CME Group
CHICAGO, Dec. 9, 2021 /PRNewswire/ -- CME Group Inc., the world's leading and most diverse derivatives marketplace, today declared its annual variable dividend, amounting to $3.25 per share. The dividend is payable January 14, 2022, to shareholders of record on December 28, 2021.
/bit.ly/33gf3jv
Euronext announces December 2021 quarterly review results of the PSI 20
Euronext
Euronext today announced the results of the quarterly review for the PSI 20 , which will take place after markets close on Friday 17 December 2021. The new composition will be effective from Monday 20 December 2021.
Results of the PSI 20 Quarterly Review
No changes in the composition of the index.
The Independent Supervisor retains the right to change the published selection, for instance in the case of a removal due to a takeover, until the publication of the final data after close of Wednesday 15 December 2021.
/bit.ly/30ahzGK
CORRECTION -- MIAX
Via Yahoo News
In the news release, Miami International Holdings Reports November 2021 Trading Results; MIAX Exchange Group Sets Annual Volume Record; MIAX Pearl Equities Sets Market Share and Volume Records, issued 08-Dec-2021 by MIAX over PR Newswire, we are advised by the company that the first table should read as the below instead of the original table that was issued inadvertently. The complete, corrected release follows:
Miami International Holdings Reports November 2021 Trading Results; MIAX Exchange Group Sets Annual Volume Record; MIAX Pearl Equities Sets Market Share and Volume Records
/yhoo.it/3GrIFss
| | | | | | Regulation & Enforcement | | | Meme Stock Mania Raised Big Questions for Regulators. What They're Worried About.
Carleton English - Barron's
Traders aren't the only ones watching meme stock mania. Regulators have kept a close eye on the surge in stock prices of names like GameStop and AMC Entertainment.
The initial surge in January, in which GameStop shares (ticker: GME) soared more than 1,500%, revealed quirks about market structure. The rapid price increase was driven in large part by a short squeeze, in which traders who bet that shares would fall had to buy back shares at higher prices to cover their bets.
/bit.ly/3pHnR9z
SEC Readies New Rules for the Type of Swaps That Sank Archegos
Benjamin Bain - Bloomberg
The U.S. Securities and Exchange Commission plans next week to release its plan for scrutinizing the kinds of complex stock derivatives transactions that fueled the collapse of Bill Hwang's Archegos Capital Management.
The SEC will propose new rules that mark the agency's biggest policy response yet to the Archegos debacle that blindsided the regulator earlier this year. The blow-up exposed the lack of visibility the Wall Street regulator has into security-based swaps transactions despite being required by Congress in 2010 to oversee the asset class.
/bloom.bg/3oFdZxH
| | | | | | Strategy | | | Stocks and Options Are Sending Different Signals. How to Play It.
Steven M. Sears - Barron's
The stock and options markets are singing different tunes.
Index trading patterns in the options market indicate it isn't ready to concede that the worst is over for stocks, even though the Cboe Volatility Index, or VIX, has fallen from bearish levels to a range that suggests enthusiasm for equities.
/bit.ly/3oCvVZZ
Wall Street Strategist Forecasts for 2022 Differ by Second-Most in a Decade
Lu Wang - Bloomberg
The newly hawkish Federal Reserve and the ever-evolving virus have made life difficult for Wall Street's stock prognosticators.
Take the latest forecast from Ed Clissold, chief strategist at Ned Davis Research. He sees the potential for an earnings slowdown and tighter Fed policy to push U.S. equities into "a shallow bear market" next year before the S&P 500 bounces back to end modestly higher.
/bloom.bg/3DK9B4J
Opinion: If the S&P 500 can't hit new highs, brace for fresh selling
Lawrence G. McMillan - MarketWatch
By the end of last week, the S&P 500 index had sold off sharply, and some extremely oversold conditions existed. That led to an oversold rally this week, which was initially accompanied by only a few buy signals.
As the rally has progressed, more buy signals have emerged. However, the S&P SPX, -0.22% has not been able to break through to a new all-time high, so the 4705+ area remains as stiff resistance.
Is the market once again going to fail at this level, or will it finally be able to punch on through?
/on.mktw.net/3rRyUQf
| | | | | | Miscellaneous | | | Crypto derivatives platform Paradigm nabs $400 million valuation in funding round
Frank Chaparro - The Block
Paradigm is raising $35 million in a fundraise led by Jump Capital and Alameda Research.
The company plans to leverage the funds to expand into DeFi derivatives.
Paradigm â a player in the crypto derivatives market â is the latest digital asset trading firm to tap into the wave of capital pouring into the market.
/bit.ly/3DEUb1Y
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