| July 12, 2022 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | 
Veteran Trader Joe Corona Talks Freely In His Open Outcry Traders History Project Interview - Part One
JohnLothianNews.com
Joe Corona's Open Outcry Traders History Project story is a frank discussion of someone who stumbled into the markets as a temporary gig on his way to another career that never happened. Joe started a career in the markets after a friend of a friend helped him get a job as a runner at the Cboe in 1980 after he graduated from Northwestern University, and he never looked back.
Watch the video »
| | | | | | Lead Stories | | | Euro Buyers Fend Off Dollar Parity in Last-Gasp Defense
Greg Ritchie, Vassilis Karamanis, and Alice Gledhill - Bloomberg
For now, a wall of derivatives bets is keeping the euro from hitting parity with the greenback for the first time in two decades.
Traders mounted a last-ditch push on Tuesday to stop those options contracts from triggering after the shared currency slid to within a whisker of a pure one-for-one rate. It's a border that could quickly collapse if fresh concern over Russian natural-gas supplies or signs of a relatively more hawkish Federal Reserve drive the euro lower.
/jlne.ws/3c2SIu1
Is Crypto's Volatility an Issue or an Asset? Depends Who You Ask; The crypto market's high volatility is sometimes viewed as a drawback. Some see it as its best feature.
Victoria Vergolina - Bloomberg
Depending on who you ask, crypto's volatility is either a bug or a feature. Wild and unexpected price swings make this an asset class ill suited to anyone who can't stomach risk. It's clear that these gyrations can be challenging, but is there a world in which they're perceived as a benefit? And if so, what's the upside? In this episode, Bloomberg Opinion columnist Lionel Laurent joins us to discuss whether there's any value to crypto's volatility.
/jlne.ws/3PfwnaQ
Argentina May Offer Put on Local Bonds to Entice Buyers
Ignacio Olivera Doll - Bloomberg
Argentina's central bank is in talks with private lenders about adding a put option to its local bonds that would compel the monetary authority to buy back the notes if prices fall too far.
Technical staff from private banks met Monday with the central bank's general manager, Agustin Torcassi, to discuss the possibility, according to people with direct knowledge of the matter. A put option is a financial instrument that allows the holder to sell the security at a set level, even if market prices fall below that level.
/jlne.ws/3O3ef3h
Argo Is Using Derivatives to Offset Risk. How It Could Help Other Crypto Miners.
Jack Denton - Barron's
A crash in crypto prices and elevated energy costs are heaping pressure on Bitcoin miners, and at least one miner is looking to offset risk by turning to the derivatives market.
Argo Blockchain ARB - 2.86% (ticker: ARB.U.K.) said in a statement last week that it has been using derivatives to limit downside risk since the fourth quarter of 2021, and that it hired a full-time derivatives trader in June "to augment its in-house capabilities within risk and treasury management."
/jlne.ws/3nWaKke
| | | | | | Exchanges | | | Cboe migrations give exchange a foothold in Canadian equities
Joanna Wright - WatersTechnology
Cboe Global Markets has made no secret of its plans for the world domination of electronic derivatives tradingâthe exchange operator and market infrastructure provider is clear about its ambitions to provide the world's biggest derivatives and securities trading platform. The group last year launched a derivatives platform in Europe and is pushing ahead with plans to gain ground in Asia-Pacific and Canada.
/jlne.ws/3Rusb97
CME Group International Average Daily Volume Reached 6.3 Million Contracts in Q2 2022, Up 21% from Q2 2021
CME Group
CME Group, the world's leading derivatives marketplace, today announced that its quarterly international average daily volume (ADV) reached 6.3 million contracts in Q2 2022, up 21% year on year. Reflecting all trading reported from outside the United States, volume was driven largely by 43% growth in Equity Index products, a 28% increase in Interest Rate products, a 24% rise in Foreign Exchange products and a 44% growth in Equity Options.
/bit.ly/3ax9IZ3
SGX Group reports market statistics for June 2022
Strong June volume gains round off robust half-year for derivatives; Continued growth in listings on Asia's leading international bond marketplace
SGX
Singapore Exchange (SGX Group) today released its market statistics for June 2022. Derivatives trading activity rose strongly for the month, rounding off a robust half-year as sustained volatility in global markets drove institutional demand for portfolio risk management. With geopolitical uncertainty, elevated inflation and recession concerns a common theme across Asian markets, SGX Group continues to provide global investors with a trusted and highly liquid toolkit to manage risk over multiple asset classes. Derivatives traded volume increased 24% year-on-year (y-o-y) in June to 23.5 million contracts, the highest in three months. For January-June 2022 - a period where participants were challenged by severe market conditions - volume was up 13% from July-December 2021 at 116.7 million contracts, with derivatives daily average volume (DDAV) rising 18%.
/bit.ly/3uGNsCM
| | | | | | Regulation & Enforcement | | | Single-Stock ETFs Move Closer to Market Despite SEC Concerns
Lydia Beyoud and Elaine Chen - Bloomberg
AXS Investments became the first company to pass a regulatory milestone to provide leveraged single-stock ETFs in the US, even as Securities and Exchange Commission officials criticized such products as potentially posing serious risks for investors and the markets.
The company filed paperwork with the agency Monday in preparation for offering exchange-traded funds holding complex derivatives tied to the performance of stocks like Tesla Inc. and Nvidia Corp. It wasn't immediately clear when the ETFs might hit the market, but the filing indicates AXS now has regulatory approval to proceed.
/jlne.ws/3Pq4hdl
| | | | | | Technology | | | SpiderRock Launches "Chart Tool" as a New Way to Visualize Options Volatility
Businesswire
SpiderRock Gateway Technologies ("SpiderRock"), a leading provider of analytical option data, announced today the release of "Chart Tool", a web application for visualizing historical and implied volatility trends. Utilizing SpiderRock's robust trading analytics, Chart Tool offers access to over ten years of volatility data on U.S. stocks, indexes, ETFs, and ADRs, all through a simple browser interface.
The new charting tool is user-friendly, intuitive, and caters to a wide demographic of options traders ranging from equity traders who seek more robust option analytics to seasoned option volatility professionals in search of edge.
/jlne.ws/3Rnt97n
| | | | | | Strategy | | | The hedging behavior of bitcoin market makers could exacerbate a price drop if there's a breakdown in the bearish chart pattern.
Omkar Godbole - Coindesk
Bitcoin's recent trading action has formed a pattern called a "bear flag." That looks like a pause in the past months' market downtrend, and it usually leads to a fresh move lower.
What's especially troubling at the moment is just how lopsided the positioning has become in the crypto options market. The dynamic might aggravate any sell-off triggered by a flag breakdown.
/jlne.ws/3P1ViPv
3 Iron Condor Trade Ideas For July 12th
Steven Baster - Barchart
With most stocks seeing big downside moves and high volatility, we could be due for some consolidation. Iron condors are a strategy that does well when stocks stay relatively flat.
An iron condor aims to profit from a drop in implied volatility, with the stock staying within an expected range.
When implied volatility is high, the wider the expected range becomes.
/jlne.ws/3nUaDpA
| | | | | | Miscellaneous | | | BOE's Bailey Says Goal Is to Curb Inflation, 'No Ifs or Buts'
David Goodman and Philip Aldrick - Bloomberg
Bank of England Governor Andrew Bailey said policy makers are prepared to move borrowing costs higher in bigger steps to control inflation, his most explicit comment yet on the scale of tightening under consideration.
Bailey said the BOE's aim is to bring inflation back to the 2% target, and there's "no ifs or buts" about that goal. Answering questions after a speech, he said "we want people to see that there are more options on the table than another 25 basis points."
/jlne.ws/3z2rm0m
Wall Street Traders Set for $27.8 Billion Haul From Wild Markets
Hannah Levitt and Shubham Saharan - Bloomberg
The biggest U.S. banks are poised to report a double-digit increase in trading, the result of big market swings spurred by recession fears, soaring inflation and global turmoil, including Russia's invasion of Ukraine.
Trading revenue at the five biggest Wall Street firms likely climbed 16% to $27.8 billion in the second quarter, driven by fixed-income desks which are expected to have brought in a combined $16.4 billion, according to analyst estimates compiled by Bloomberg. That increase, along with higher net interest income tied to Federal Reserve rate hikes, should provide a boost to earnings, countering a hit from slowdowns in the companies' investment-banking and mortgage businesses and a drop in valuations at their wealth-management arms.
/jlne.ws/3aw36u7
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