| July 31, 2024 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | 
Unlocking Market Potential: Frank Somma Discusses SIX Clearing's Innovative Solutions and T+1 Impact
JohnLothianNews.com
Frank Somma, senior sales manager at SIX, recently shared insights on the benefits of central counterparty (CCP) clearing and SIX Clearing's offerings in an interview with John Lothian News at FIA's International Derivatives Week in London.
Watch the video »
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CQG's Kevin Darby Discusses AI Innovations and Market Integration at Options Conference
JohnLothianNews.com
Kevin Darby, vice president of CQG, sat down with John Lothian News at the Options Conference in Asheville, North Carolina, for the JLN Industry Leader video series sponsored by the Options Clearing Corporation (OCC). JLN asked Darby about CQG's advancements and strategies in the realm of artificial intelligence (AI) and machine learning (ML) within the financial markets.
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| | | | | | Lead Stories | | | High-frequency traders, brokerage firms to face brunt of regulatory curbs on options
Jayshree P Upadhyay and Sethuraman N R - Reuters
The Indian market regulator's proposed measures to curb the trading frenzy in options will impact high-frequency traders and quant funds as well as brokerage firms that have gained from increased retail investor interest in the segment, traders said.
On Tuesday, the Securities and Exchange Board of India (SEBI) proposed raising the minimum trading amount for index options by more than three times, reducing the number of contracts expiring each week and hiking margins.
/jlne.ws/4dpWdoN
Brokers Brace for Impact as India Plans Tighter Stock Derivatives Rules
Ashutosh Joshi - Bloomberg
Tougher derivatives rules puts BSE, brokers in focus
Sebi's plan to curb volumes in equity derivatives will put a spotlight on India's oldest stock exchange, BSE Ltd., and stock brokers. Angel One, which makes a good chunk of its earnings from clients trading in derivatives, may suffer the most. Investors are eager to see how brokers handle this tougher regulatory environment. The new uniform exchange fee and the increased capital gains tax have already dampened industry sentiments. Now, with SEBI aiming to actively curb volumes in options trading, the threat to brokers' earnings is greater than ever.
/jlne.ws/3YpDHZm
Quant Funds Face Profit Risk as India Moves to Curb Options Boom; Sebi's proposal may shrink liquidity, eat into trading margins; Global high-speed trading firms are expanding India operations
Chiranjivi Chakraborty - Bloomberg
Profits for global and domestic quant traders in India's options market are set to come under threat as the country aims to slow the rapid growth in equity derivatives trading. The securities regulator Tuesday proposed measures that could shrink liquidity in the $4 trillion futures and options market and cut into margins for market makers and traders. India's surge to the top of global equity derivatives volumes has lured high-speed trading firms including Citadel Securities LLP and Optiver. The market grabbed global attention in April after US-based Jane Street Group revealed that a strategy used in India generated $1 billion in profits, highlighting the potential for big gains. This also sheds light on how smaller investors often struggle to compete with the big players in equities trading.
/jlne.ws/4drUjnN
Nvidia Slide Underscores Volatility Stalking US's Hottest Stock
Emily Forgash - Bloomberg
The artificial-intelligence boom has made one of the hottest US stocks even more volatile than the largest cryptocurrency. Nvidia Corp., whose stock-price had surged sharply as companies spend billions on its computer chips, slid 7% on Tuesday in its steepest drop in more than three months, wiping $193 billion from its market value. The recent reversal of fortune - which has knocked its share price down 23% since July 10 - is underscoring a risk that didn't matter when Nvidia's stock price did nothing but go up: By one key measure, at least, it's been roughly twice as volatile as Bitcoin.
/jlne.ws/4d6V5XA
NvidiaâEURâ¢s $100 Billion Swings Become Routine as Volatility Soars; ChipmakerâEURâ¢s shares have been twice as volatile as Bitcoin; Stock is on track to be first to add $300 billion in one day
Subrat Patnaik - Bloomberg
The one-way ride Nvidia Corp. took investors on for most of the last year has turned into a whiplashing.
A day after its worst rout in three months, the chipmaker rallied 12%, putting it on track to be the first company ever to add $300 billion in market value in a single session.
/jlne.ws/3A2Ljqx
âEURËDr. DoomâEUR⢠Nouriel Roubini Is Looking to Launch His First ETF; Joins trend of strategists, money managers launching funds; HeâEURâ¢s known for his bearish views ahead of the financial crisis
Vildana Hajric - Bloomberg
Economist Nouriel Roubini, who earned the âEURÅDr. DoomâEUR moniker for his warnings of disaster ahead of the 2008 financial crisis, is looking to become the latest high-profile Wall Street veteran to make their mark in the $9.4 trillion ETF universe.
The Atlas America Fund, which would count him as one of three portfolio managers, would be actively managed and invest in a variety of assets, including potentially US government, corporate and municipal bonds, real estate, equities and gold, according to a filing with the US Securities and Exchange Commission. It aims to generate stable returns with low volatility and limited correlation with broader equity markets, protecting against downside risks during periods of financial market stress.
/jlne.ws/3STO8RF
Active ETF launches in Europe are sign of BlackRockâEURâ¢s new focus; WorldâEURâ¢s largest asset manager believes we are at a âEURËturning pointâEUR⢠as take-up of active ETFs accelerates globally
Steve Johnson - Financial Times
BlackRock believes the exchange traded funds industry is at a âEURÅturning pointâEUR as it launches a further five actively managed ETFs in the European market, according to a senior executive.
The suite of âEURÅenhancedâEUR funds doubles BlackRockâEURâ¢s existing European active ETF roster and is a further sign of where the worldâEURâ¢s largest asset manager is increasingly focusing its attention.
/jlne.ws/3WLyQ3I
| | | | | | Exchanges | | | CME expands weather product range, with seasonal strip futures and options
Steve Evans - Artemis
The Chicago Mercantile Exchange (CME Group) has expanded its range of weather risk transfer products, with the recent launch of seasonal strip weather futures and options contracts.
The CME has been trading weather derivatives and other weather and climate risk transfer products for many years now, but this is the first launch of new products to expand its offering in quite a while.
These CME Seasonal Strip Index futures and options contracts are already available for trading, with a range of effective dates chosen to suit seasonal weather risk transfer and weather hedging needs.
/jlne.ws/3YpkxCY
Temporary fee reduction for EURO STOXX 50 End-of-Day Index Options to enable better access
Eurex
We are excited to announce that, as part of our commitment to enhance access to trading and risk management, Eurex will be implementing a significant reduction in transaction fees for the EURO STOXX 50 End-of-Day Index Options (OEXP). This fee reduction will be effective from September 1, 2024, to August 31, 2025.
/jlne.ws/4c6oDDh
Product Modification Summary: Amendments to the Block Trade Minimum Quantity Threshold and Spread Combinations for Certain CME and CBOT Agricultural Futures and Options Contracts - Effective August 26, 2024
CME Group
Amendments to the Block Trade Minimum Quantity Threshold and Spread Combinations for Certain CME and CBOT Agricultural Futures and Options Contracts.
/jlne.ws/4d00pMf
New Product Summary: Initial Listing of Q2 Seasonal Strip Weather Futures and Options Contracts
CME Group
Initial Listing of Q2 Seasonal Strip Weather Futures and Options Contracts.
/jlne.ws/3WIw1jB
| | | | | | Strategy | | | Crypto investors embraced this trading strategy with bitcoin ETFs. But not for ether ETFs.
Frances Yue - MarketWatch
The launch of bitcoin ETFs in January helped make basis trade, one of the most popular trades in crypto, even more popular. However, the trade is likely to be less in demand when it comes to ether ETFs.
The so-called basis trade, sometimes known as the cash-and-carry trade, is a market-neutral strategy aimed at exploiting the price discrepancy between an asset and its corresponding derivatives.
/jlne.ws/46qDA1R
Earnings Deluge
Cboe (Video)
Ahead of tomorrow's Fed rate decision and this week's earnings (including $MSFT, $AAPL and $AMZN), Tim Biggam @delta_desk provides market updates in #Vol411.
/jlne.ws/4fFuW3R
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| | | | John Lothian News (JLN) is the news division of John J. Lothian & Company, Inc. (JJLCO). The online media and financial services firm is staffed by derivatives industry, journalism and technology professionals. | | | | | | | John Lothian News Editorial Staff: | | | John Lothian
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