| October 28, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | How Can Long Volatility Go Down When the VIX Index Goes Up?
Michael Cameron, Martin Vestergaard and Manjeet Mudan - Cboe
Many investors were disappointed by the performance of long volatility strategies during the 2022 market sell off, despite increased realized volatility and an increased Cboe Volatility Index (VIX Index) â a benchmark that measures the market expectation of future realized volatility. Hedgers and tail risk funds were similarly dissatisfied. Although the VIX Index measured higher, the S&P 500 Index (SPX) option implied volatility decreased in the latest selloff, resulting in the underperformance of these strategies. However, Carmika Partners' proprietary volatility model predicted that with SPX skew at all-time highs, a combination of long skew or long volatility was unlikely to work in a market downturn. How could investors have leveraged this model to inform their strategy?
/jlne.ws/3Dmc0EP
Emerging-markets ETFs are 'burning investor cash' as China drags down performance
Christine Idzelis - MarketWatch
Exchange-traded funds focused on emerging markets are "burning investor cash," with their portfolios dragged down by overweight exposure to Chinese stocks, according to Strategas.
In a research note this week, Todd Sohn, an ETF strategist at Strategas, pointed to China's equity market decline on Monday and questioned whether exposure to emerging markets is "entirely necessary." Chinese stocks were punished Monday after Xi Jinping over the weekend took his third term as China's communist party leader, consolidating power while sidelining rivals.
/jlne.ws/3zsqvG1
Elon Musk closes $44bn deal to buy Twitter
Hannah Murphy, Ortenca Aliaj, James Fontanella-Khan and Tim Bradshaw - Financial Times
Elon Musk has closed his $44bn deal to take Twitter private, bringing an end to one of the most high-profile and dramatic buyout sagas in recent memory after months of legal wrangling between the world's richest man and the social media platform.
As the billionaire entrepreneur took over on Thursday night, he fired Twitter's chief executive Parag Agrawal and chief financial officer Ned Segal. Vijaya Gadde, Twitter's head of legal, policy and safety, and general counsel Sean Edgett were also dismissed, one person said.
"[T]he bird is freed," Musk tweeted.
/jlne.ws/3sHro9Q
Dogecoin Is Surging on Hopes of a New Life on Twitter
Jack Denton - Barron's
Twitter shareholders can breathe easy now that Elon Musk has taken the company private. Dogecoin owners may be even more thrilled since the cryptocurrency could get a new lease on life through the social-media platform.
Twitter shares rose less than 8% between Monday and Thursday's close, before the stock was suspended in New York upon the completion of Musk's takeover.
Dogecoin crushed it, jumping 40% throughout the week. And bulls see more gains ahead, given Musk's long history with the token.
/jlne.ws/3Nj9qE7
| | | | | | Exchanges | | | London's hold on global currency market weakens, BIS survey shows; UK capital remains the most important hub for global interest rate derivatives trading
Nikou Asgari - Financial Times
London's position as the global hub for foreign currency and derivatives trading has eroded as the UK capital faces fierce competition from other major financial centres. The triennial survey by the Bank for International Settlements published on Thursday found that while the UK remains the most important hub for currencies and interest rate derivatives trading, its share of both markets has fallen since the last survey in 2019.
/jlne.ws/3zoS9Un
TWIFO 324: Exploring the Mysteries Of Event Contracts
Oct 28, 2022 | This Week in Futures Options
The Options Insider (podcast)
HOST: Mark Longo, The Options Insider Radio Network
CME/FTSE RUSSELL HOT SEAT: Martin Franchi, Ninja Trader
We discuss the recent launch of event contracts at CME with Martin Franchi, CEO - Ninja Trader on this episode of This Week in Futures Options.
/jlne.ws/3TP4lpA
| | | | | | Regulation & Enforcement | | | SEC Favors Midpoint Prices on Investor Stock Trades in Rules Overhaul
Alexander Osipovich and and Paul Kiernan - WSJ
The Securities and Exchange Commission's planned overhaul of stock-trading rules seeks to ensure that small investors get better prices when buying or selling stocks.
One of the SEC's aims is to increase the likelihood that investors get the midpoint price on tradesâhalfway between the publicly displayed buying and selling priceâor better.
/jlne.ws/3sIBs2u
SEC Proposes New Rule for Investment Advisors Who Outsource Essential Functions
Kenneth Corbin - Barron's
The Securities and Exchange Commission on Wednesday proposed a new rule that would require registered investment advisors to conduct due diligence and ongoing monitoring on any third-party service provider conducting essential functions for the practice.
The proposal comes in response to the growing complexity and demands for service in the wealth management sector that have prompted many advisors to outsource operations like portfolio construction or trading services.
/jlne.ws/3SOEU5Y
| | | | | | Strategy | | | The Option Block 1139: META Screws The Pooch by Option Block
The Options Insider (podcast)
HOST: Mark Longo, The Options Insider Media Group
CO-HOST: Mike Tosaw, St. Charles Wealth Management
CO-HOST: Andrew Giovinazzi, The Option Pit
In this episode Mark, Uncle Mike, and the Rock Lobster break down: The latest in the options markets; most active equity options today including F, meta; earnings volatility in META, SHOP, LUV, F, AAPL, AMZN; unusual options activity in SHOP, RVIV, HST; stock substitution strategies; what's on our radar for the rest of the week and the weekend; and much more.
/jlne.ws/3zqQ225
| | | | | | Education | | | A Beginner's Guide to Decentralized Crypto Derivatives
Alex Lielacher - Cryptonews.com
Decentralized derivatives emerged out of the fast-growing DeFi market to enable crypto asset hedging and speculating in a decentralized manner.
Read on to learn what decentralized crypto derivatives are, what different types of decentralized derivatives are available today, and where you can trade them.
/jlne.ws/3DKBcq4
| | | | | | Events | | | The Securities Industry and Financial Markets Association (SIFMA) will host a Listed Options Symposium on November 9 and an Equity Market Structure Conference on November 10 in New York City. The keynote speaker at the Listed Options Symposium will be Henry Schwartz, vice president, global head of client engagement, data & access solutions at Cboe Global Markets. The program will cover such topics as: what's next for options market structure; regulation, transparency and the interplay between SEC releases; the future of the options market; and the movement to index options and other investor trends. The Equity Market Structure conference keynote speaker is Jessica Wachter, chief economist and director of the Division of Economic & Risk Analysis, U.S. Securities and Exchange Commission. Other speakers will cover the following topics: equity market structure reform; regulation, the interplay between SEC releases and cross-border developments; debrief on the 2022 midterms; roadmap to 2050 and emerging trends; market data; and what's trending in ETFs.
For more information you can visit these links: Listed Options Symposium; Equity Market Structure Conference ~SR
| | | | | | Miscellaneous | | | Meta got bumped off world's top 20 companies' list, thanks to Zuckerberg's relentless metaverse pursuit
Huileng Tan - Business Insider
Meta's demotion came after its share price tanked nearly 25% on Thursday, shaving a quarter off the stock's market value, or roughly around $65 billion.
Meta's market cap is now around $260 billion, making it the world's 27th most valuable company. That's way behind Apple at the top of the list, Tesla in the sixth place, and Exxon in the 10th spot, according to a Bloomberg ranking. It's also a hard fall from a market cap of just under $1 trillion at the start of the year.
/jlne.ws/3Wb1pVR
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