 | August 17, 2021 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | Optiver Airs Concerns on Options Market Structure
Anna Lyudvig - Traders Magazine
The significant concern in the US equity options market is the underpinning market structure, which favors the wholesalers with an affiliated market making arm, according to Optiver. On August 11, Optiver, a proprietary trading firm and market maker for various exchange-listed financial instruments, released a series of papers highlighting concerns about the state of the U.S equity options market.
/bit.ly/3m96IFO
******JJL: SEC, are you listening?
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Larry Abrams Part Two: Trader, "New York Jew" and Magician
JohnLothianNews.com
In part two of the JLN MarketsWiki Education Open Outcry Traders History Project interview with Larry Abrams, he talks about the emotionally draining market openings every day, his rather ugly experience in Kansas City opening a futures trading operation for Cooper Neff, options exercised out of the money, electronic trading, economic opportunity (and small worlds) and being a magician.
Watch the video »
| | | | | | Lead Stories | | | FX Traders Vulnerable to Powell Surprise at Tuesday Town Hall
David Finnerty and Masaki Kondo - Bloomberg
Option markets signal investors aren't expecting any currency fireworks before the Jackson Hole symposium next week, leaving them vulnerable to surprises when Federal Reserve Chair Jerome Powell hosts a town hall meeting later Tuesday.
A gauge of average one-week implied volatility in the euro, yen, pound and Canadian dollar against the greenback is sitting just off its lowest since Feb. 2020. That suggests a degree of complacency, with traders betting Powell won't say anything substantive till next week's event. The Fed Chairman will respond to questions from educators in Tuesday's virtual forum.
/bloom.bg/3gaQfNp
Defensive ETF flows hint at 'bullish but worried' sentiment on Wall St
Chris Flood and Michael Mackenzie - Financial Times
Billions of dollars have flowed into "defensive" exchange traded funds in recent weeks, highlighting the jitters arising in some corners of Wall Street after US stocks have set a series of record peaks.
The resurgence in coronavirus infections in some US states, evidence of rising inflationary pressures and concerns that the Federal Reserve will soon start to scale back its vast asset purchasing scheme have already prompted some investors to adopt a more cautious stance.
/on.ft.com/3iSGbKA
'Big Shorts' Burry 'made a great call' during 2008 housing crisis but Cathie Wood says he doesn't get 'explosive growth' opportunities in innovation and space
Mark DeCambre - MarketWatch
Michael Burry vs. Cathie Wood.
It's a battle of investment minds for the ages and one in which the investment thesis around disruptive technology trends, in areas from innovation to space exploration, is in the crosshairs.
On Tuesday, investing luminary Wood defended her optimistic case for her big technology bets, like Tesla Inc., and Virgin Galactic Holdings, and other investments, that she thinks will reshape the globe, via her popular ARK Innovation ARKK exchange-traded fund.
Burry, who shot to fame for predicting the subprime mortgage crisis in 2008 and was featured in the Michael Lewis book and movie "The Big Short," is taking the other side of Wood's bets.
In a series of tweets, Wood said that Burry, this time, doesn't get it.
/on.mktw.net/3APgG3c
FX option selling and weak demand behind vol slide, say traders
Risk.net
The return of volatility sellers and a lack of directional interest from fast money have combined to grind foreign exchange vol down towards pre-Covid levels, say options traders. Even though inflation could revive this corner of the market, it's not clear whether FX will see the full benefit.
/bit.ly/3k0OfZ5
Cryptocurrency derivatives market shows growth despite regulatory FUD
Cointelegraph
The cryptocurrency market has successfully rebounded from the two-month slump it had gone into from late May to the end of July. Bitcoin (BTC) and Ethereum (ETH) have been leading the charge, posting impressive gains over the last two weeks. The market is seeing price levels that it had reached back in May of this year.
Along with the price gains, the cryptocurrency derivatives market that includes financial instruments like futures, options and even micro futures are also seeing rejuvenated interest from investors.
/bit.ly/3yV5qBP
| | | | | | Exchanges | | | Robinhood Reports Earnings on Wednesday. Here's What Could Move the Stock.
Avi Salzman - Barron's
Robinhood Markets will release its second-quarter earnings after the market closes on Wednesday, but the numbers are unlikely to matter. There are two reasons for that. The main one is that Robinhood (ticker: HOOD) already previewed the report, and said how many new customers it had added. So the stock's biggest selling point â that the company is adding users far faster than other brokers â is already baked into the stock price. Robinhood said it had 22.5 million funded accounts at the end of the second quarter, up from 18 million at the end of the first and 12.5 million at the start of the year.
/bit.ly/3CXMIM3
TradeZero Announces Membership On The New York Stock Exchange And NYSE ARCA Exchanges
TradeZero
TradeZero America, a Brooklyn, New York-based online broker dealer that provides commission-free stock and options trading, announced that the firm has been approved for membership on the New York Stock Exchange and NYSE Arca exchanges. TradeZero America has been a member of the NYSE Amex Options exchange with a presence on the options trading floor since 2019.
/bit.ly/37PQUPF
| | | | | | Technology | | | Talent Is High on Optiver's Radar
Anna Lyudvig - Traders Magazine
The big challenge in the industry right now is access to talent, Rutger Brinkhuis, Optiver US CEO, said.
"The war for talent is definitely high on our radar. It's all about accessing the right talent," Brinkhuis said. "That's exactly why we have opened our Austin office in the U.S. and we are expanding our global presence in Singapore and London."
/bit.ly/3mbytNK
| | | | | | Moves | | | ****JJL: John Fennell has joined tFOSE Group Holdings Inc. as executive vice president, chief risk officer. Fennell spent the last 10 years at the OCC.
| | | | | | Events | | | ****JJL: The FIA wants you to know that IDX â the International Derivatives Expo â is the place to be, bringing together industry leaders, vendors and policymakers to discuss what's "now" in derivatives, and what lies ahead. Join FIA for two full days of outstanding programming, networking and exhibits from 27- 28 September in London. FIA is creating a unique IDX experience that will keep you safe while allowing you to connect with clients, colleagues and friends from the local cleared derivatives community. Register now to take advantage of special rates that end 27 August.
FIA's Operations Americas Division is bringing back the Chicago Golf Outing on 27 September. This year, in addition to the regular golfing event at the Arrowhead Golf Club, the division is offering a golf clinic and a networking dinner-only option. Net proceeds from the event will go to two Chicago-area charities - the Greater Chicago Food Depository and the Greenwood Project. Event registration is open only to FIA members. Learn more and register now!
| | | | | | Miscellaneous | | | VIX Trading Patterns
Cboe - August 16, 2021
Kevin Davitt gives us a market update, and talks $VIX, current events, #oil, and #copper.
/bit.ly/3yV1otb
Shkreli May Keep His Picasso After Sale of Wu-Tang Album
Patricia Hurtado - Bloomberg
Jailed fund manager Martin Shkreli may get to keep his "low-dollar Picasso" engraving and Lil Wayne's "Tha Carter V" album, as court records show he's already paid off the almost $7.4 million he was ordered to pay the government as a result of his 2017 conviction.
Shkreli, who is serving a seven-year sentence for securities fraud committed while running two hedge funds, had repaid about $5.12 million as of early April through asset sales, records show. Last month, prosecutors said the remaining $2.24 million was satisfied after the sale of the only copy of Wu-Tang Clan's "Once Upon a Time in Shaolin."
/bloom.bg/3yVSyLE
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Editor
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