| December 13, 2021 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | OptionsBrewTV's Kevin "Lex" Luthringshausen from Tradier had Cboe's Henry Schwartz on to talk about "Understanding Options Order Flow using Cboe's Trade-Alert." They talked about how options volume is out of the stratosphere, with Schwartz saying there are "ten million contracts a day in retail volume, that was not here 5 years ago." He also said he believes the U.S. options markets volume could reach 9.5 billion contracts this year. Schwartz attributed the increase in volumes to the perfect storm of people working from home and the reduction of friction from zero-cost brokerage offerings. Lex and Schwartz also discussed Cboe's Trade Alert offerings and how moving to the Cboe improved them. You can watch the interview HERE.
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Risky Options Trading Worries Regulators; Bitcoin's Weekend Woes; CME Unveils Trading Challenge Winners - The Spread - December 10, 2021
JohnLothianNews.com
â FINRA seeks to more closely monitor options trading to protect new retail investors; Crypto volatility continues; MIAX notches another record; Top 5 winners of CME Group's trading contest include Loyola University Chicago, University of Illinois and Southern Illinois University; - "John's Take:" A bittersweet farewell to John J. Lothian & Co.'s office on LaSalle Street; - Jermal Chandler looks at American-style options' parameters in the "Term of the Week."
Watch the video »
| | | | | | Lead Stories | | | FX options wrap - Central bank and virus uncertainties dominate
Reuters
The lack of data about the new Omicron COVID-19 variant will maintain an air of caution going into this week's policy announcements from the Fed, ECB and Bank of England, with that uncertainty and its risk of related FX volatility evidenced by inflated shorter dated expiry FX option implied volatility.
/reut.rs/3F7f87j
Stocks Fall Ahead of Federal Reserve Decision
Joe Wallace and Alexander Osipovich - WSJ
Stocks fell ahead of a major decision by the Federal Reserve expected later this week on how aggressively to combat inflation.
The S&P 500 fell 0.7% in Monday afternoon trading, pulling back after the benchmark gauge closed last week at its 67th record high of 2021. The Dow Jones Industrial Average slid more than 300 points, or 0.9%. The technology-heavy Nasdaq Composite Index declined 1.2%.
/on.wsj.com/3DTELqB
Libor limbers up for 'Y2K' walk into a $265 trillion sunset
Huw Jones and John McCrank - Reuters
Bankers and regulators will be at their screens on New Year's Eve to see if what was once dubbed the world's most important number slips quietly into the history books. The London Interbank Offered Rate, or Libor, is finally being switched off, ending its role pricing derivatives and loans ranging from mortgages and student loans to business funding and credit cards, which totalled $265 trillion globally as of the start of 2021. The rate is being scrapped a decade after banks were caught trying to rig it in what will be the biggest shake-up to markets since the introduction of the euro in 1999.
/yhoo.it/3ylIb46
GameStop (GME), AMC Drag Meme Group to 7-Month Low
Bailey Lipschultz - Bloomberg
Losses for a basket of so-called meme stocks are mounting with traders shifting away from riskier assets in the final weeks of the year.
The group of 37 retail trading favorites tracked by Bloomberg extended losses to 6% at 11:50 a.m. in New York, as selling pressure for markets around the globe accelerated. The index has shed almost a quarter of its value over the past three weeks as it slides to the lowest level in seven months.
/bloom.bg/3GCtiNZ
Turkish lira crumbles after S&P warns over Turkey
Steve Goldstein - MarketWatch
The beleaguered Turkish lira was crushed on Monday after Standard & Poor's warned it may downgrade its B+ debt rating on Turkey.
One dollar fetched as much as 14.6412 lira, up from 13.8769 lira. The dollar has surged an astronomic 92% against the Turkish currency this year.
/on.mktw.net/3DS5T9e
Funds pause CBOT optimism but remain captivated by corn
Karen Braun - Reuters
Speculators were thought to have started off the month as modest buyers of Chicago grains and oilseeds while futures clawed back from a virus-fueled selloff, but corn was the only true beneficiary as funds defended near-record bullish bets for the date.
/reut.rs/3DRMXHN
Low hedge fund oil positions create re-entry point
John Kemp - Reuters
Hedge fund selling of oil futures and options slowed in the most recent week, after a tidal wave of selling the week before, probably indicating the liquidation cycle is near its end.
/reut.rs/3ypqrEZ
| | | | | | Exchanges | | | With nickel, MCX launches third base metal derivatives on its platform
Business Standard - Mumbai
The largest commodity exchange MCX on Monday launched trading on nickel options, making it the third base metal derivatives on its platform.
The exchange already offers base metal options on futures in copper and zinc and option contracts in gold, silver and crude.
/bit.ly/30lAT3R
Exchanges to Innovate for Increased Retail Flow
Markets Media
US exchanges are expected to continue to innovate to allow institutions to interact with the increased volumes of retail trading, which mostly takes place off exchanges.
Jack Miller, head of trading, institutional equities at Robert W. Baird & Co, said the increase in retail volumes has bought topics such as payment for order flow and exchange rebates to the forefront.
/bit.ly/3s0sRc2
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