| July 25, 2024 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | Walt Lukken, president and CEO of FIA, testified at a US House Agriculture Committee subcommittee hearing on reauthorizing the Commodities Futures Trading Commission (CFTC). Lukken emphasized strong support for the CFTC's reauthorization, highlighting significant growth in futures and options markets, which saw volumes nearly double from 3.4 billion contracts in 2008 to 6.6 billion in 2023. He noted the markets' increased safety and resilience, especially during events like COVID-19 and the Russian invasion of Ukraine.
Lukken urged Congress to monitor the CFTC's enactment of strong conflict of interest rules, the impact of Basel III regulations, and the implementation of Treasury clearing mandates. He also recommended resolving legal uncertainties in FCM bankruptcies, expanding educational resources for small and mid-size farmers, and improving the CFTC's research and development capabilities. ~JJL
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Options Discovery Episode 10: Exploring Different Types of Firms in the Options Industry; Allard Jakobs Talks About the Options Industry and What It Takes to Lead an Options Firm
JohnLothianNews.com
In this episode of Options Discovery, Alex introduces the different types of firms that make up the options industry. Alex also sits down with the CEO of All Options, Allard Jakobs, who talks about his experience running a market making firm. Allard also discusses his philosophy for hiring at his firm as well as how he has pivoted to address the big changes in the industry.
Watch the video »
| | | | | | Lead Stories | | | How the Hottest Hedge Funds on Wall Street Really Manage Risk; The software driving multi-strategy.
Joe Weisenthal and Tracy Alloway - Bloomberg
Multi-strategy hedge funds, also known as "pod shops," have become the hottest ticket on Wall Street. The business model is supposed to allow hedge funds to operate more efficiently. That includes deploying capital in a more productive manner and better managing risk. But how does risk management at some of the most sophisticated funds on Wall Street actually work? In this episode, we speak with Rich Falk-Wallace, formerly of Citadel and now the founder and CEO of Arcana, which provides risk management and portfolio software for multi-strat funds. We talk about how risk models are impacting investor behavior and wider markets, how multi-strat traders come up with their ideas, and the factors that go into sizing and evaluating their positions.
/jlne.ws/3SKPAWr
Wall Street steadies after tech rout; Chip stocks in Europe and Asia suffer sharp declines as investors punish companies for missing earnings targets
George Steer, Leo Lewis and Song Jung-a - Financial Times
Wall Street steadied after a recent technology rout on Thursday following better than expected US growth figures, although chip stocks in Europe and Asia suffered heavy declines.
The Nasdaq Composite rose 0.2 per cent by late morning in New York, erasing earlier declines after the tech-heavy index suffered its worst day in 18 months on Wednesday, dropping 3.6 per cent.
/jlne.ws/4fgnFal
Wall Street's ETF Engine Revs Up After $17 Billion Bitcoin Haul; Issuers hoping to put out new crypto funds after Ether debuts; Bitcoin ETFs see big demand, with net inflows of $17.5 billion
Vildana Hajric and Isabelle Lee - Bloomberg
Barely 48 hours after US regulators approved Ether ETFs tracking the world's second-largest cryptocurrency, asset managers are rushing to crank out fresh products for the fledgling digital-asset class.
ProShares on Wednesday submitted paperwork for six funds that would go long or short Bitcoin or Ether. Recently, Hashdex said it was looking to package both tokens into one investment box. Issuer VanEck, meanwhile, last month said it was hoping to debut an ETF based on Solana, the fifth-largest cryptocurrency, even as analysts say that the road to such a launch would be rocky.
/jlne.ws/4d7WqNk
Warnings Pile Up as Indian Authorities Seek to Curb Stock Frenzy; Regulator wants retail investors to avoid speculative trading; Loss of savings could affect consumption pattern: Lotusdew
Ashutosh Joshi - Bloomberg
The explosion in retail participation in India's booming stock market is raising alarms from both the government and the regulator as concerns grow about household savings being redirected to speculative activities. A study released by the Securities and Exchange Board of India on Wednesday revealed that seven out of 10 intraday trades in the cash equity market made losses in the year ended March 2023. These findings are consistent with the regulator's study last year, which found that nine out of 10 active retail traders lose money on derivatives.
/jlne.ws/3yl1or5
BlackRock leads as ether ETFs rack up $100mn on first day of US trading; Debut not as large as bitcoin ETF launch but in line with expectations
Will Schmitt - Financial Times
BlackRock, Bitwise Investments and Fidelity have emerged as the early leaders among the US exchange traded funds that invest directly in ether, the world's second largest cryptocurrency. The funds took in about $267mn, $204mn and $71mn respectively on their first day of trading Tuesday, while investors withdrew about $484mn from a better established but more expensive rival Grayscale Investments, according to data from Bloomberg Intelligence. The nine new ETFs that invest in the native token of the ethereum blockchain drew in about $108mn, generating about $1.1bn in overall volume.
/jlne.ws/3y8J8kR
Opinion: The stock market's cruel summer is about to get much worse; Bears control the S&P 500 now. Plus: This small stock trades like it could have big news
Lawrence G. McMillan - MarketWatch
The S&P 500 index has quickly turned down from its all-time highs. In fact, a pattern of lower highs and lower lows has already emerged, which is quite bearish. We are no longer recommending a "core" bullish position, and we are acting on new sell signals. How did this happen so quickly? SPX made new all-time highs in the first half of July, and there was no negative divergence in place. In fact, small caps were beginning to come alive for the first time in quite a while. Even now, with SPX having broken support, the small-cap indexes are outperforming (although they are also falling).
/jlne.ws/4dijF7i
| | | | | | Exchanges | | | Exchange operator CME's profit beats estimates on record trading volumes
Jaiveer Shekhawat - Reuters
CME Group on Wednesday beat analyst estimates for its second-quarter profit, as the exchange operator notched record trading volumes, with investors rushing to manage risks in the wake of ongoing geopolitical and economic uncertainties. mLatest economic data showing signs of easing inflation has fueled hopes of a possible rate cut in the current half of the year that has helped markets reach new highs.
/jlne.ws/3WCgDWb
CME Group to Launch Adjusted Interest Rate S&P 500 Total Return (SOFR) Futures on August 26
CME Group
CME Group, the world's leading derivatives marketplace, today announced plans to launch Adjusted Interest Rate S&P 500 (AIR) Total Return (SOFR) futures on August 26, pending regulatory review. AIR Total Return futures on U.S. indices are designed to provide total return exposure with an overnight floating rate built in. The model for the new AIR S&P 500 Total Return futures remains the same; however, the new product will use the Secured Overnight Financing Rate (SOFR) as the embedded rate instead of the current Effective Federal Funds Rate (EFFR).
/jlne.ws/4djruKb
| | | | | | Regulation & Enforcement | | | SEC Obtains Judgment Against Former Broker Related to Hedge Fund Valuation Scheme
SEC
On July 8, 2024, the U.S. District Court for the Southern District of New York entered a final consent judgment against Frank Dinucci, Jr., a broker at formerly-registered New York-based broker-dealer AOC Securities LLC, permanently enjoining him from violating the antifraud and other provisions of the federal securities laws.
/jlne.ws/4bYBEyJ
| | | | | | Strategy | | | That Stock Market Pullback Was Painful. Here's What to Do Next.
Paul R. La Monica - Barron's
Wednesday's stock market slide looked really bad. The Dow Jones Industrial Average tumbled 500 points, and the S&P 500 fell more than 2%. The Nasdaq Composite was hammered, plunging 3.6% as concerns about Alphabet and Tesla's earnings led to a rout for the Magnificent Seven stocks and the rest of the tech sector.
/jlne.ws/3LZo8jX
Behind the Ticker: WisdomTree U.S. Multifactor Fund (USMF)
Cbeo (Video)
/jlne.ws/3WzFSs6
| | | | | | Miscellaneous | | | Could the Field Museum get that Stegosaurus Ken Griffin just bought?
Brandon Dupre - Crain's Chicago Business
Hedge-fund billionaire Ken Griffin made headlines last week after paying $44.6 million for a nearly complete Stegosaurus fossil named "Apex," the most ever paid for a fossil at auction. Following the purchase, Griffin was quoted as saying he intended to keep it in the country. "Apex was born in America and is going to stay in America," he said after the sale of the fossil, which was excavated on private land in Moffat County, Colorado.
/jlne.ws/3y9xztG
***** Ken, Sue needs a friend.~JJL
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