| September 07, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
MWE SHORT: Johan Toll - Everything You Always Wanted to Know About Blockchain But Were Afraid to Ask
JohnLothianNews.com
Nasdaq's Johan Toll became a blockchain expert almost by accident. In April of 2014 he sent an article about blockchain from a Swedish technology magazine around to his business unit, saying, "I think this is something interesting we should start looking into." A couple of weeks later someone from sales called him and said he had a client who was interested in blockchain, and Toll had to get up to speed fast. He is now in charge of blockchain business development for Nasdaq.
Watch the video »
| | | | | | Lead Stories | | | Investors Are Forgoing Crash Insurance in Options Market
Eric Wallerstein - The Wall Street Journal
Traders are backing away from bets on a market crash.
The Nations SkewDex, an index that tracks demand for protection against a downward market swing, fell to 57.82 Tuesday, hovering near its lowest levels since the Covid-19 pandemic sent volatility soaring. The S&P 500, on the other hand, has fallen in 10 of the past 14 trading sessions, down 9.1% since Aug. 16, partly on renewed worries about how quickly the Federal Reserve will move to raise interest rates.
/jlne.ws/3BfjoAX
Hedge Funds Swarm Back to Upended Markets With Short, Long Bets
Lu Wang - Bloomberg
After spending much of 2022 playing defense, professional speculators are reasserting themselves with aggressive equity bets on both the short and long side.
Hedge funds have raised exposure in back-to-back weeks, data from Goldman Sachs Group Inc.'s prime brokerage show, increasing short sales via macro products such as index futures while buying shares of individual firms. The moves resulted in their busiest week by notional trading volume in a year. The same trends were observed by Morgan Stanley, where hedge-fund clients boosted holdings in single stocks in areas such as technology and health care, while adding shorts against exchange-traded funds.
/jlne.ws/3evLekC
Fed must 'put inflation to bed' by keeping rates high, says top official
Colby Smith - Financial Times
A senior Federal Reserve official has said the US central bank must lift interest rates to a level that restrains economic activity and keep them there until policymakers are "convinced" that rampant inflation is subsiding.
In an interview with the Financial Times, Thomas Barkin, president of the Fed's Richmond, Virginia, branch, said the central bank had already shifted its monetary policy towards much tighter settings to rein in the worst price pressures in roughly four decades.
/jlne.ws/3Qu84Gl
Interactive Brokers' Peterffy Says S&P 500 Could Fall 16% Before Bottom
Emily Graffeo and Alix Steel - Bloomberg
US stocks haven't fallen enough to account for the elevated inflation pressures that will drive the Federal Reserve to keep interest rates high for a sustained period of time, says billionaire investor Thomas Peterffy.
The founder and chairman of Interactive Brokers Group Inc. told Bloomberg Television Wednesday that the S&P 500 won't hit a bottom until it trades to levels between 3300 and 3500. After it reaches that bottom, which represents a slide of as much as 16% from Wednesday's levels, it will stay there for "a while" until the US contends with an inflation-fueled economy.
/jlne.ws/3AYlhSk
| | | | | | Exchanges | | | Cboe Global Markets Reports Trading Volume for August 2022
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today reported August monthly trading volume statistics across its global business lines. The data sheet "Cboe Global Markets Monthly Volume & RPC/Net Revenue Capture Report" contains an overview of certain August trading statistics and market share by business segment, volume in select index products, and RPC/net capture, which is reported on a one-month lag, across business lines.
/jlne.ws/3D82x5o
ErisX Announces Settlement Service for Over-The-Counter Crypto Transactions
Cboe
ErisX, a Cboe Global Markets company, today announced it has introduced the ErisX Settlement Service, a new solution designed to help remove settlement risk for over-the-counter (OTC) crypto transactions. The new offering expands ErisX's suite of tools for institutional investors, enabling them to settle OTC trades with other ErisX customers using a transparent U.S. licensed crypto spot market.
The ErisX Settlement Service can be accessed via standardized API or ErisX's fully integrated Trading User Interface.
/jlne.ws/3QqelmG
Miami International Holdings Reports August 2022 Trading Results; MIAX Options, MIAX Pearl Equities and SPIKES Futures Set Year-to-Date Volume Records
MIAX
Miami International Holdings, Inc. (MIH) today reported August 2022 trading results for its U.S. exchange subsidiaries - MIAX , MIAX Pearl and MIAX Emerald (together, the MIAX Exchange Groupâ¢), and Minneapolis Grain Exchange (MGEXâ¢).
/jlne.ws/2K3gU18
NYSE Options Builds on Strong Momentum
Anna Lyudvig - The Trade
The New York Stock Exchange (NYSE) is planning to bring the NYSE Pillar platform to NYSE Amex Options in 2023, according to recently appointed Head of Options, NYSE, Meaghan Dugan.
"We are highly focused on building on the strong momentum following this year's successful NYSE Arca Options migration to NYSE Pillar," she told Traders Magazine.
NYSE Arca Options continues to lead as the top U.S. options exchange by volume for the eleventh month in a row.
/jlne.ws/3ekI6b2
August 2022 figures at Eurex
Eurex
Interest rate derivatives again show strongest growth (up 31 percent) among listed derivatives in August. Total Repo volumes increase by 94 percent y-o-y. Notional outstanding in OTC overnight index swaps up 122 percent. Total traded derivatives contracts at Eurex grew by 22 percent in August, from 101.4 million to 123.6 million compared to the same month last year. Interest rate derivatives again showed a strong year-on-year growth, up 31 percent from 37.6 million traded contracts to 49.5 million, while index derivatives grew by 25 percent, from 47.0 million traded contracts to 58.7 million. Total contracts traded in equity derivatives fell by 8 percent to 15.3 million.
/jlne.ws/3cW5wDp
EEX Group Monthly Volumes - August 2022
EEX
Monthly Volume Report, EEX Press Release, Monthly Volume Report
EEX Group reports its August volumes with following highlights: Power: The trading volume on the European Power Spot market amounted to 50.4 TWh in August with the Intraday markets increasing by 13% to a total volume of 10.7 TWh.
The EEX European Power Derivatives market reached a volume of 259.1 TWh which is -17% as against August 2021, but an 7% increase compared with July 2022. EEX reported increases in Italian (+28%) and Belgian (+11%) as well as Dutch Power Futures (+166%), while the latter reached a new monthly record.EEX Japanese power volumes increases by 24% to 877.9 GWh while the US Power Derivatives volume declined by 36%.
/jlne.ws/3x4I9OJ
Signing of Memorandum with China Financial Futures Exchange to Enhance Derivatives Market Cooperation
JPX
Today, Japan Exchange Group, Inc. (JPX) and China Financial Futures Exchange, Co. Ltd. (CFFEX) signed a memorandum of understanding to enhance cooperation in derivatives markets. Henceforth, JPX and CFFEX will actively collaborate on initiatives and promotional activities that encourage the use of derivative products listed on JPX and CFFEX markets for investment activities by market participants in Chinese and Japanese markets, including trades to enhance the liquidity of ETFs listed under the Japan-China ETF Connectivity scheme*. https://jlne.ws/3KViRbq
| | | | | | Regulation & Enforcement | | | CFTC Charges Former Trader for Engaging in a Fraudulent Scheme to Mismark U.S. Dollar Interest Rate Derivatives
CFTC
The Commodity Futures Trading Commission today issued an order filing and settling charges against Blaise Brochard of New York, New York, a former trader at a global bank, for engaging in a scheme to mismark positions on the bank's U.S. dollar interest rate derivatives desk (IRD Desk). The order requires Brochard to pay a $250,000 penalty, cease and desist from violating applicable provisions of the Commodity Exchange Act (CEA) and CFTC regulations, and comply with certain conditions and undertakings, including a three-year ban on trading commodity interests for or on behalf of other persons or entities. "Mismarking schemes undermine the fairness and integrity of the markets, and we will vigorously pursue such misconduct and hold individuals accountable, where appropriate," said CFTC Acting Director of Enforcement Gretchen Lowe.
/jlne.ws/3KTpeMr
| | | | | | Technology | | | Iress Helps Prime Trading To Reduce Data Latency And Costs
Press release via Mondo Visione
Iress today announced that it has enabled Prime Trading, an industry-leading, privately held, proprietary trading firm, to successfully improve its data quality whilst reducing API data latency and costs. Previously, during peak moments of market volatility, Prime Trading experienced latency issues and network constraints as it consumed tick by tick market data. As part of its commitment to constantly seek out improvements for its end clients, it approached Iress for a solution.
/jlne.ws/3AWNnNA
| | | | | | Strategy | | | How Increased Quote Depletion Protection Usage Benefits Investors
Cboe
Cboe's Quote Depletion Protection (QDP) order type has experienced significant growth over the past year, prompting Cboe's North American Equities Execution Consulting team to examine the effects of the increased usage and execution quality.
QDP is an optional instruction that market participants can use with Midpoint Discretionary Orders (MDOs) on Cboe's EDGX and EDGA exchanges. This order type is popular among market participants who wish to avoid adverse selection while resting non-displayed liquidity. When activated, QDP disables the discretionary range of MDOs for a short period to prevent executions at prices more aggressive than their ranked price, during a period of short-term volatility.
/jlne.ws/3TTVV0n
| | | | | | Miscellaneous | | | Why 'sell in May' shouldn't work â but does
Brett Arends - MarketWatch
Nobody really knows why it works. But dang if it doesn't, year after year.
I'm talking about the old Wall Street saying, "Sell in May and go away." In other words: Get out of the market for the summer.
As markets slumped in May, June and again last month I was reminded of the saying yet again.
/jlne.ws/3d1sPLU
A college student made a $110 million profit on Bed Bath & Beyond stock in under a month. Jake Freeman shed light on his background, his massive bet, and the retail backlash to it in a Twitter Q&A.
Theron Mohamed - Business Insider
Jake Freeman discussed his background, his massive bet, and the retail backlash to it on Twitter.The 20-year-old touted Bed Bath & Beyond's products, and its prospects if consumer demand fades.
/jlne.ws/3RiCxZn
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