 | | | | | | | | February 10, 2025 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | 
BCOM options provide a new way to gain broad-based exposure to the commodity market, featuring greater potential capital and margin efficiency to commodity index trading strategies with similar exposure to OTC swaps. Explore your options.
| | | | | | Lead Stories | | | Europe Gas Option Traders Bet on Summer Surge as Supply Shrinks; Traders look to fill storage before peak winter demand; Summer futures trade at a rare premium to next winter
Priscila Azevedo Rocha and David Marino - Bloomberg
European natural gas traders are piling into an unusual seasonal bet - that prices will gain almost 50% by the summer - as they look to stockpile fuel for next winter.
The trades, which run counter to the market's typical historical pattern of valuing winter gas higher than summer, underscore the conviction that prices have further to climb as supply tightness fears dominate the market. Investment funds have already pushed bullish wagers on Intercontinental Exchange Inc. near an all-time high, and worries that normal shipping routes will be thrown into disarray by trade conflicts are adding uncertainty to an already volatile market.
/jlne.ws/3CFTf2R
Equity Vol Markets Shrug Off Tariff Threat
Mandy Xu - Cboe
While Canada and Mexico tariffs were delayed last week, China tariffs went into effect - though market reaction has been benign so far. Chinese equities rallied, with most of the flow in FXI still focused on upside calls (skew remains inverted across all tenors). Even SPX 1M implied vol - though it jumped initially on the tariff headlines - retraced quickly, ending the week unch'd at 13.2% and trading nearly 1 vol pt below realized. The equity vol markets are still pricing tariffs as a negotiating tactic, rather than an intended policy.
/jlne.ws/4gyXCuw
Trump Wants to Manage Your Investment Portfolio; Everyone is launching new ETFs these days, including the president
Jack Pitcher - The Wall Street Journal
President Trump, who has lent his name to everything from steaks and wine to cryptocurrencies, now wants to sell you investment funds. Trump's social-media company, Trump Media & Technology, said Thursday that it has applied for trademarks on a series of exchange-traded funds and separately managed accounts. The financial products, which include funds labeled "Made in America" and "Energy Independence," will launch later this year, Trump Media said.
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Trump's Tariffs Make Currency Trading Cool Again After Years of Decline
Alice Atkins - Bloomberg
In the decade Tim Brooks has been buying and selling currencies, he's grown used to feeling that the action is usually elsewhere. He and his team at Optiver Holding BV, a top trading firm in London, rely on volatility to generate quick profits from sudden moves in exchange rates. But dramatic swings largely evaporated after the global financial crisis of 2008, when the biggest central banks began cutting and then raising interest rates more or less synchronously. Occasional bursts of excitement notwithstanding-such as last year's surge in the Japanese yen following a surprise interest-rate hike-currency trading ceded the spotlight to the stock and bond desks.
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Debt Derivatives Are So Tight Even Trump's Tariff Talk Can't Shift Them
Neil Callanan - Bloomberg
Even US President Donald Trump's tariff rhetoric can't rattle credit markets, a sign to some money managers and strategists that the market is too complacent. Prices on credit default swaps barely moved on Monday amid the prospect of levies being introduced on Mexican and Canadian goods, even as trading volume in the derivatives more than doubled from the previous week's daily average. By Tuesday, activity had returned to more typical levels.
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| | | | | | Exchanges | | | CME Group Announces First Trades of Physically-Delivered Ethanol Futures & Options
CME Group
CME Group, the world's leading derivatives marketplace, today announced its new physically-delivered Ethanol futures and options are now available for trading. A total of five futures contracts traded on February 7, 2025.
"We are pleased to see industry support for our latest Ethanol contracts, which have enhanced specifications and are complementary to our existing suite of renewable fuel products," said Peter Keavey, Global Head of Energy and Environmental Products at CME Group. "Ethanol is an increasingly important component of the transportation fuel mix, and the physically-delivered futures will allow gasoline blenders and other commercial users to hedge their price exposure and more effectively manage the differential between other refined products."
/jlne.ws/40KFK9S
Cboe Global Markets to Present at the BofA Securities 2025 Financial Services Conference on Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, announced today that Fredric Tomczyk, Chief Executive Officer, Jill Griebenow, Executive Vice President and Chief Financial Officer, David Howson, Executive Vice President and Global President, and Chris Isaacson, Executive Vice President and Chief Operating Officer, will present at the BofA Securities 2025 Financial Services Conference in Miami, Florida on Wednesday, February 12 at 12:10 p.m. ET. The live webcast and replay of the presentation will be accessible at ir.cboe.com, under Events and Presentations. The archived webcast is expected to be available within an hour of the presentation.
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Euronext Mulls Moving All ETFs on Its Exchanges to One Venue
Emily Nicolle and Anna Irrera - Bloomberg
Euronext NV is in discussions with market participants about potentially moving all of the exchange-traded products listed on its bourses to a single trading venue. The European exchange operator is considering several options to consolidate the number of ETP listings across its seven bourses, including a solution that would bring them all together in Amsterdam, according to people familiar with the talks who are not authorized to discuss the matter publicly. It's also possible that Euronext would let each product issuer pick one exchange for all of their listings, one of them said.
/jlne.ws/4aPa7Rr
Crypto ETF Hopefuls View SEC's Latest Moves as Change of Pace; SEC is seeking comments on Solana ETF filing for first time; Issuers are hopeful new SEC will embrace pro-crypto choices
Emily Graffeo - Bloomberg
Donald Trump's pick to succeed Gary Gensler as chair of the SEC hasn't been officially installed yet, but the regulator is already taking incremental steps on a path to approving a handful of new cryptocurrency exchange-traded funds. On Thursday, the US Securities and Exchange Commission said its seeking public comments on Grayscale's Solana and Litecoin exchange-traded products, according to two filings. Industry observers say it's an encouraging sign and change of pace from the agency, which previously had not acknowledged filings for ETFs that track the spot price of Solana, one of the largest cryptocurrencies behind Bitcoin and Ether. The SEC began to seek comment for another Litecoin ETF in January.
/jlne.ws/4aQ8hzJ
| | | | | | Technology | | | ICE Expands Intraday Pricing and Analytics Offering for Canadian Fixed Income Markets with CanDeal DNA
ICE
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of technology and data, today announced the launch of intraday price updates and bond analytics data for Canadian fixed income securities through an agreement with CanDeal DNA, a premier source for Canadian fixed income and OTC derivatives pricing and analytics data. This new offering enhances ICE's existing suite of pricing and reference data for fixed income asset classes, including Canadian fixed income securities. ICE can now provide pricing, spreads and standard analytics fields updating at hourly intervals from 8AM to 5PM (ET).
/jlne.ws/3EtFq89
| | | | | | Strategy | | | For Investors in Hedge Funds, 'Portable Alpha' Is Back
Caitlin McCabe - The Wall Street Journal
On Wall Street, what's old is new again. "Portable alpha" is back, after years in the doldrums.
The strategy combines index investing with active money-management. For example, a pension fund might buy derivatives instead of a traditional index to get exposure to broad market performance, but with a smaller cash outlay. It then uses the funds it has freed up to invest in hedge funds, for an extra dollop of uncorrelated returns.
/jlne.ws/4gGaNtn
Funds push bullish CBOT corn bets to highest since April 2022
Karen Braun - Reuters
"Funds bought corn" is perhaps becoming a broken record for U.S. grain markets, though there are signs that the streak could soon be snapped.
In the week ended February 4, money managers increased their net long position in CBOT corn futures and options to 364,217 contracts from 350,721 a week earlier, establishing their most bullish corn view since April 2022.
/jlne.ws/3WW5NKa
| | | | | | Education | | | The Nuances of Volatility A Distributional Perspective
tastylive (Video)
It's not always easy to take the measure of a market, whether you've been trading for a day or a decade. On this segment we look under the hood-options probabilities, volatility, trading strategies, futures, you name it-so your trading mechanics are built to manage more winners.
/jlne.ws/3CNmj8D
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