| April 14, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Ether Options Trading Volume Surpasses Bitcoin As Shanghai Upgrade Drives Demand for Bullish Bets
Omkar Godbole - CoinDesk
The options market tied to ether (ETH) has seen more activity than bitcoin (BTC) in the past 24 hours, the first such instance of 2023. Major exchanges, including industry leader Deribit, have seen ether options contracts worth $1.23 billion exchange hands in the past 24 hours. That is nearly 60% of the global crypto options activity and 50% more than bitcoin's notional trading volume of $823.7 million, according to Swiss-based data tracking website Laevitas.
/jlne.ws/43Bbv6b
The Once-Mighty Eurodollar Futures Contract Will Soon Be No More; Most traders have already migrated to SOFR futures and options; Remaining eurodollar contracts will be converted on Friday
Elizabeth Stanton - Bloomberg
A cornerstone of the US interest-rates market for a generation of traders will mostly cease to exist after Friday. As part of the long-planned transition away from the scandal-plagued London interbank offered rate borrowing benchmarks, derivatives linked to them will also be phased out. That means that eurodollar futures and options - for decades the bread and butter of those wagering on Federal Reserve decisions or hedging moves in short-term interest rates - will soon be gone. Friday is when CME Group Inc., the exchange operator that lists the contracts, will convert those expiring after June to futures or options on the Secured Overnight Financing Rate, which have overtaken eurodollars in trading volume. SOFR is a relatively new benchmark that officials favor as a successor to Libor in dollar funding markets.
/jlne.ws/41rxI4z
LSE Group joins battle between exchanges for crypto derivatives; UK group to put futures and options deals through French clearing arm
Nikou Asgari - Financial Times
The London Stock Exchange Group plans to begin clearing crypto derivatives, joining the battle among the world's big exchanges to grab a slice of rising institutional demand to trade digital assets. The UK group will use the Paris arm of its clearing subsidiary, LCH, to manage the risks on bitcoin futures and options traded on GFO-X, a UK regulated marketplace, the company said on Thursday.
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A veteran volatility trader known for nailing the market's recent twists and turns warns the Fed still needs to suck 'the wealth effect' out of stocks
Will Daniel - Fortune via Yahoo Finance
You probably won't find Cem Karsan in an office. In order to talk to the veteran volatility trader and derivatives expert you have to go to the "open outcry pit" of the Chicago Board Options Exchange (CBOE), where traders gather like they did in the age before online brokerages to bark buy and sell orders.
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Debt ceiling jitters drive up cost of insuring against US default
Kate Duguid, Lauren Fedor and Colby Smith - Financial Times
The cost of buying insurance against a US government default has shot to its highest level in more than a decade, in an early sign of market concerns about the political impasse in Washington over the debt ceiling.
Amid a stalemate between the White House and congressional Republicans on raising the federal borrowing limit, the price of five-year credit default swaps â the most widely traded form of debt insurance â reached its highest since 2012 this month.
/jlne.ws/3odkHgN
JPMorgan CEO Jamie Dimon Warns of Storm Clouds Ahead for US Economy
Morgan Chittum - Markets Insider
JPMorgan CEO Jamie Dimon warned investors of looming "storm clouds" ahead for the US economy in the firm's earnings report on Friday.
The bank posted strong results, with record revenue of $38.3 billion handily beating expectations on the back of higher interest income thanks to the US central bank's aggressive monetary tightening campaign.
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After the easy money: a giant stress test for the financial system
John Plender - Financial Times
Five weeks after the collapse of Silicon Valley Bank, there is no consensus on whether the ensuing financial stress in North America and Europe has run its course or is a foretaste of worse to come.
Equally pressing is the question of whether, against the backdrop of still high inflation, central banks in advanced economies will soon row back from monetary tightening and pivot towards easing.
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| | | | | | Exchanges | | | StoneX Offers Clients Access to Coinbase Derivatives Exchange Contracts Cleared by Nodal Clear
StoneX Group Inc
StoneX Group Inc (StoneX), Coinbase Derivatives Exchange (CDE) and Nodal Clear jointly announced today that clients of StoneX Financial Inc. now have access to the full suite of CDE contracts cleared by Nodal Clear. "StoneX's retail customers will be able to trade accessible futures contracts tailored to their level of risk, and we plan to make larger contracts available to satisfy growing institutional demand." This includes CDE nano Bitcoin futures (BIT) and nano Ethereum futures (ET) contracts, sized at 1/100th and 1/10th of the underlying commodity, respectively, and provides retail traders access to liquid crypto markets.
/jlne.ws/41acFUm
| | | | | | Regulation & Enforcement | | | US Derivatives Regulator Says Binance Intentionally Flouted Rules; CFTC's Behnam says the exchange intentionally shirked rules; Agency chairman speaks about crypto at conference on Thursday
David Pan - Bloomberg
The head of Commodity Futures Trading Commission admonished Binance Holdings Ltd over its compliance with US rules after the derivatives regulator sued the crypto exchange and its chief executive last month for a litany of alleged violations. "These are not unsophisticated individuals," CFTC Chairman Rostin Behnam said Thursday at an event hosted by Princeton University. "They are starting large companies and offering futures contracts and derivatives to US customers."
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Britain recognises CFTC oversight of US clearing houses in UK
David Milliken - Reuters
The Bank of England said on Friday it would rely on a key U.S. regulator's assessment of U.S.-based central counterparties (CCPs) which clear financial trades in Britain, in order to reduce duplication of work by supervisors.
The BoE signed an agreement with the U.S. Commodities and Futures Trading Commission (CFTC) in 2020 to share information, and Friday's announcement will partially outsource the regulation of U.S. clearing houses which operate in Britain.
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| | | | | | Strategy | | | What will it take for U.S. stocks to soar?
Philip van Doorn - MarketWatch
The broad U.S. stock indexes hit their highest levels in two months on Thursday.
William Watts shares an analysis from Mark Arbeter, who uses a technical approach to lay out what will be needed to spark a huge rally for stocks, with traders jumping aboard out of a fear of missing out.
And Joseph Adinolfi explains another factor that may be in the market's favor following last year's brutal action.
/jlne.ws/3muUoST
Way OTM Call Spread
Cboe (Video)
Dan Deming @djd551 with commentary on all things $VIX & #volatility - big OTM #options action, realized vol trending lower, the roll market & more - in #Vol411. #VIX #SPX $SPX
/jlne.ws/3MJcif6
| | | | | | Education | | | What Is The VIX Volatility Index? - Forbes Advisor Australia
Miranda Marquit - Forbes
The S&P/ASX 200 VIX (XVI) is an index that calculates the amount of volatility expected in the Australian stock market over the next 30 days. As Market Index explains, it uses the bid/ask prices for S&P/ASX 200 put and call optionsâmore about these belowâto determine a weighted average of the implied volatility in the market.
In the US, it is referred to as the CBOE Volatility Indexâor just the VIXâand is a primary gauge of stock market volatility on the S&P 500 Index (SPX).
/jlne.ws/3UC8Nck
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| | | Jeff Bergstrom
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