 | | | | | | | | December 13, 2024 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | 
Eurex's Matthias Graulich Highlights Growth and Advantages of Credit Index Futures
JohnLothianNews.com
Matthias Graulich, head of strategy at Eurex, discussed in an interview with John Lothian News at the FIA Expo in Chicago the success and growth of Eurex's credit index futures, emphasizing the product's competitive advantages and market adoption. "When we restarted this whole credit initiative back in 2021, there were some fundamental changes in regulation, like margin rules for OTC derivatives," Graulich said. He noted that technological advancements and increased electronic trading created an opportunity to introduce a more efficient product for buy-side firms.
Watch the video »
| | | | | | Lead Stories | | | Hottest Indian Options Trade Sees Volume Slump 90% on Crackdown; Fewer than 20 million Nifty Bank Index options trade daily now; Derivatives turnover has halved on the NSE and BSE bourses
Chiranjivi Chakraborty and Savio Shetty - Bloomberg
It's been barely a month since India's regulator acted to stem a frenzy in the derivatives market, but the impact is clear. The volume of options on the NSE Nifty Bank Index - traders' favorite - has slumped below 20 million contracts daily on average since the last expiration, from more than 200 million since January up until then. On the National Stock Exchange of India Ltd., the leading bourse, and peer BSE Ltd., derivatives' daily notional turnover has halved in December compared with the mean for the rest of 2024.
/jlne.ws/4gcUZyS
Donald Trump's election win sparks trading surge for banks and brokers; Markets activity 'exploded' as traders bet on a more business-friendly approach by incoming administration
Jennifer Hughes, Madison Darbyshire, Stephen Gandel and Joshua Franklin - Financial Times
Donald Trump's election victory last month ignited a trading frenzy at brokerage houses and Wall Street banks as expectations for sweeping policy changes added fuel to a US stock rally. Trading volumes in US equities jumped 38 per cent in November from the same month in 2023, reaching levels not seen since the meme stock craze of early 2021 and this month are still running above their average for the year, according to exchanges operator Cboe Global Markets.
/jlne.ws/49B6P3o
| | | | | | Exchanges | | | Pakistan Bourse Plans to Launch Cash-Settled Futures by March; Equities to ride economic stability wave, CEO Sabzwari says; Options derivatives are also on agenda amid a rally in stocks
Faseeh Mangi - Bloomberg
Pakistan Stock Exchange Ltd. is looking to give traders the option of settling futures deals in cash with testing planned by March, according to the newly appointed chief executive of the nation's bourse. "The first product on our table is cash-settled futures and then options," Farrukh H Sabzwari, who took charge last month, said in an interview at his office in Karachi on Wednesday. The move is expected to boost derivatives trading in the world's best-performing equity market this year, he said.
/jlne.ws/4fhcKM8
HKEX to enhance post-trade systems to ready for T+1; New features are due to begin rolling out in mid-2025, with key upgrades set to include real-time data processing and real-time settlement instruction matching.
Sophia Thomson - The Trade News
Hong Kong Exchanges and Clearing (HKEX) is launching a multi-year enhancement programme to upgrade its post-trade services for the cash equities market, with the aim of being 'technically ready' to support a T+1 settlement cycle by the end of 2025. Bonnie Y Chan Starting in mid-2025, HKEX will gradually introduce new features to its Orion Cash Platform (OCP), a key integrated platform for Hong Kong's cash market. These features aim to improve the efficiency, reliability, and automation of post-trade services.
Cboe Data Vantage: Data, Tools and Access to Navigate Global Markets with Confidence
Adam Inzirillo - Cboe
I hope you are enjoying the holiday season and looking forward to the new year. As 2024 comes to a close, I am reflecting on the year, the accomplishments of our team and thinking about what's ahead in 2025.
2024 was a year of alignment and optimization for the Cboe Data and Access Solutions business. Last year when I stepped into my role leading Data and Access Solutions, I was excited to broaden my understanding of the team and learn how we could harness our strengths to grow the business globally. After collaborating internally, connecting with our customers and evaluating the market landscape, we have developed a streamlined vision for the business with our customers at the forefront.
/jlne.ws/4iym2Xc
Global Derivatives 2024 Highlights
Catherine Clay - Catherine Clay
As 2024 winds down, I am reflecting on the past year for our Global Derivatives business at Cboe.
This was my first full year leading Global Derivatives after taking the helm in October 2023. We hit the ground running at the start of the year and never really slowed down. Interest in options trading continued to grow throughout the year, creating opportunities for us, as well as a stronger need for advocacy and education.
Options volumes remained strong throughout the year, with average daily volume (ADV) for Cboe's proprietary index options product suite reaching an all-time high of 4.23 million contracts in the third quarter of 2024. In addition to steady volumes, we continued to reliably operate the world's leading options exchanges, launched new products, enhanced our advocacy efforts and ramped up our educational offerings. We are driven by a desire to make options trading more accessible, with the right tools and education to meet the needs of investors of all kinds.
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| | | | | | Regulation & Enforcement | | | A source close to the class action lawsuit of CME Group members against the exchange reported to me yesterday that Lance R. Goldberg, one of the original plaintiffs in the class action suit, has passed away. Goldberg was a member of the Chicago Board of Trade since 1977 and was proactive during his tenure in protecting his membership rights, including the CBOE exercise rights that were part of a full membership at the CBOT. Our condolences to his family, friends and colleagues.
A year ago I wrote a story about the class action lawsuit because I was concerned about the number of former members who were dying and my expectation that the suit could be settled sooner rather than later for a case that had dragged on for 10 years. Now one of the plaintiffs has died, as well as others who have been following the case closely.
The next step in the case is a January 10 status hearing for the newly appointed judge to rule or ask for more information on the CME's motion on summary judgment and other issues. A court date of July 7 is set for the case to begin to be heard.
It is just sad that this case has taken this long to resolve itself and that some of the people involved won't be around when it finally is. ~JJL
Statement on CAT Cost Savings
Chair Gary Gensler - SEC
Today, the Commission approved amendments to the 2016 National Market System Plan that established the Consolidated Audit Trail (CAT). I am pleased to support this amendment estimated to save $21 million annually while maintaining the core functionality of CAT. This amendment modifies requirements related to linking market maker quotes for equity options. In addition, it also makes changes to storage and retention requirements.
/jlne.ws/3DgdHaw
| | | | | | Moves | | | Hedge fund Citadel poaches second Elliott portfolio manager in London; Move by Pawel Serej indicates Ken Griffin's hedge fund may adopt more activist tactics
Arash Massoudi, Harriet Agnew and Ivan Levingston - Financial Times
Citadel has poached a second London-based portfolio manager from rival Elliott Investment Management, suggesting Ken Griffin's hedge fund is looking to adopt activist tactics. Pawel Serej, who left Elliott in the summer, is joining $65bn hedge fund Citadel in London as an event-driven portfolio manager, according to people familiar with the situation. He will focus on risk arbitrage, a strategy that speculates on the successful completion of mergers and acquisitions. Citadel declined to comment.
/jlne.ws/4guGW7G
| | | | | | Strategy | | | Opinion: Stock-option traders are seeing more reasons to be cautious about the market;
Positive seasonal conditions prevail - though small caps have yet to rally
Lawrence G. McMillan - MarketWatch
The S&P 500 rose this week on a CPI report that was in line with estimates, which analysts believe paves the way for a U.S. Federal Reserve rate cut next week. Regardless, there is support for SPX at 6,010, and then there is major support at 5,870.
There is no formal overhead resistance, but we have been using the +4Ï "modified Bollinger Band" as a potential target for this move. That band is currently at 6,107. It has contracted a bit, since realized (historical) volatility has declined. In fact, the 20-day historical volatility of SPX (HV20) is now down to 8%. That represents an overbought condition, and a sell signal will be issued when it rises back up to 10% and above. That may take some time to reach.
/jlne.ws/4flSCZo
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| | | Jeff Bergstrom
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