 | August 27, 2021 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | ****JJL: ICE may be melting in Greenland, but it is building up at the Intercontinental Exchange in the form of open interest. ICE today reported record open interest of 48.1 million contracts as of August 25, 2021. ICE's North American natural gas futures and options, which include Henry Hub and U.S. Basis Markets contracts, hit record open interest of 23 million on August 25, up 10%, with open interest in Henry Hub futures and options up 28% year-over-year. -- ICE
| | | | | | Lead Stories | | | Jerome Powell's Jackson Hole Speech Meets Wave of Expiring Treasury Options
Edward Bolingbroke - Bloomberg
A flood of Treasury options set to expire Friday may dictate the bond market's reaction to Federal Reserve Chair Jerome Powell's long-awaited speech on the economic outlook.
More than 2 million options in the September 10-year contract, which is 63% of total options open interest in Treasuries, expire by the end of trading Friday, raising the prospect for volatility in the wake of Powell's remarks scheduled to start at 10 a.m. New York time.
/bloom.bg/2Wtyl1C
S&P 500, Nasdaq scale new peaks as Powell calms taper fears
Devik Jain - Reuters
The S&P 500 and the Nasdaq hit record highs in a risk-on-rally on Friday as Federal Reserve Chair Jerome Powell signaled the U.S. central bank would remain patient in winding down stimulus.
/reut.rs/3sQQfqS
Fed Keeps Options Open, but Not Too Open
Justin Lahart - WSJ
There is a very good chance that in the final analysis, the Delta variant won't have done much to hinder the economy. Instead, rising vaccination rates, the availability of boosters and the eventual approval of vaccines for younger children may lead to things only getting better. And if that happens, it would probably be better for the Federal Reserve to have begun reducing its bond purchases, giving itself at least the option of raising rates.
/on.wsj.com/3gGIHCa
The Market Is Totally Unprepared For A Surprise From The Fed
Barron's
Traders have been talking about the Kansas City Fed's Jackson Hole economic symposium for months now, and as the big day arrives, there is one word to describe financial markets: complacent.
The Cboe Volatility Index, the informal fear gauge for the stock market, remains subdued, more than 50% below its levels ahead of the U.S. election.
/bit.ly/3sU3F5B
Opinion: Why stock market bulls may be right to push valuations so high
Jim Ayres and Larry Hood - MarketWatch
With U.S. stocks reaching new highs, investors and experts alike are starting to wonder if market conditions are getting frothy.
In a frothy market, investor enthusiasm begins to outpace any consideration of risk. Investors feel confident in the economy and corporate earnings and begin to project that confidence further into the future. They increasingly listen to their greed impulse and tune out fear, leading them to bid up stock prices to levels that look historically high and difficult to justify based on the near-term outlook.
/on.mktw.net/3jn4DUF
| | | | | | Exchanges | | | Keep the 'Chicago' in Chicago's financial exchanges
The Editorial Board - Chicago Tribune
We felt a little thrill when news broke last week that CME Group, Chicago's No. 1 operator of financial exchanges, was in talks to acquire Cboe Global Markets, the city's No. 2.
CME issued a standard denial, and the best outcome for the city might be no deal at all. But if there is a deal for Cboe, please, please, please, let's keep this Chicago business in Chicago.
/bit.ly/38k8zPK
ICE Reports Record Futures Open Interest of 48.1 Million Contracts
ICE
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, today announced record total futures open interest of more than 48.1 million contracts on August 25, 2021. ICE's North American natural gas futures and options, which includes Henry Hub and U.S. Basis Markets contracts, hit record open interest of 23 million on August 25, up 10%, with open interest in Henry Hub futures and options up 28% year-over-year ("y/y").
/bit.ly/3ksI4gS
NSE to take steps to curb fat-finger trades, unusual price movements in options
A four-step confirmation process implemented for futures is proposed to be introduced in the options segment
Tarun Sharma - MoneyControl
The National Stock Exchange of India plans to introduce a four-step confirmation process for trading in options in a bid to curb abnormal price movements in derivatives.
The four-step system has already been implemented for futures contracts. Alerts are generated if the order price exceeds or is equal to a certain percentage of the reference price for buy orders and is less than or equal to that threshold for sell orders. The threshold value is 3 percent for index futures and 5 percent for stock futures.
"The exchange is shortly introducing a similar alert system for options," a person aware of the development told Moneycontrol. "The exchange has directed its members using customised front-end systems to build similar alerts."
/bit.ly/3zq9rOH
NSE asks investors to deal with only registered stock brokers
Outlook India
Leading stock exchange NSE on Friday asked investors to deal with only registered stockbrokers amid instances of unregistered entities targeting gullible investors with false promises of exorbitant returns.
In a statement, National Stock Exchange (NSE) has asked investors not to transfer funds or securities to the stockbroker under any arrangement or agreement of assured or guaranteed returns.
/bit.ly/3gDdjoq
| | | | | | Regulation & Enforcement | | | SEC wants input on new rules governing 'gamification' in online trading apps
Chris Matthews - MarketWatch
The Securities and Exchange Commission is seeking public input on the digital engagement practices of online broker-dealers and investment advisors as it considers new rules that could set limits on so-called gamification techniques that critics say encourage overuse of investment apps.
"While new technologies can bring us greater access and product choice, they also raise questions as to whether we as investors are appropriately protected when we trade and get financial advice," said SEC Chairman Gary Gensler in a press release Friday. "In many cases, these features may encourage investors to trade more often, invest in different products, or change their investment strategy."
/on.mktw.net/3zpcFlG
SEC Launches Review of Online Strategies Used by Brokers, Advisers
Wall Street watchdog's request for public comment may presage new rules for brokers such as Robinhood
WASHINGTONâThe Securities and Exchange Commission launched a wide-ranging review Friday of the online strategies that brokers such as Robinhood Markets Inc. HOOD +0.30% and investment advisers use to interact with customers, aiming to determine whether tools like smartphone notifications are in the best interests of investors.
The SEC solicited public comments Friday on "digital engagement practices" in the financial industry. These include social-networking tools, investing games and contests with prizes, digital badges, and leaderboards, notifications, celebrations for trading and chatbots.
/on.wsj.com/3sUiTHy
| | | | | | Events | | | Understanding the SEC's evolving derivatives regulatory framework
FIA
Part of the L&C webinar series
With the finalization of both the SEC's regulatory framework for derivatives use by RICs and BDCs and the SEC's capital, margin and segregation rules regarding security-based swaps, the OTC derivatives regulatory landscape is expected to shift yet again. Join us as we explore how these developments are likely to affect firms' trading programs and learn how to prepare for the changing landscape.
Host: Michael Sorrell, Deputy General Counsel, FIA
Speakers: Jaime Madell, Partner, Derivatives, Kirkland & Ellis; Aaron Schlaphoff, Partner, Investment Funds, Kirkland & Ellis
Date/Time: Thursday, 23 September 2021 | 10:00 a.m. - 11:00 a.m. ET
/bit.ly/3kucH5w
| | | | | | Miscellaneous | | | Waters Wrap: A whole new way of looking at data spend (And CME-Cboe thoughts); As brokers start to explore various forms of self-service models, Anthony wonders if this could lead to a complete rethink of how commercial terms and contracts are structured for adding on new datasets.
Anthony Malakian - Waters Technology
Putting this up late this week. With people away on vacationâand me coming back from my ownâit's been a bit hectic. Anyway, enough excuses, let's rip into it. Reimagining data spend I think that this is a story that many of you will be familiar with: I hated cable TV and welcomed the advent of streaming services and the freedom they provided. I could finally pay for only the channels and services that I cared most about. Flash forward three years, and I have no actual clue as to how much I pay.
/bit.ly/3kp1EdT
Wall Street Is Looking to Reddit for Investment Advice
Caitlin Ostroff and Paul Vigna - WSJ
Wall Street professionals tell everyday investors what stocks to buy. But now they have to follow some of these amateurs for signs of where the market is headed next.
Venerable institutions Goldman Sachs Group Inc. and Morgan Stanley are tracking the retail trading frenzy, and hedge funds in New York and London have employees combing through the internet forum of Reddit, Twitter or chat startup Discord in search of trading opportunities. They turned to these sources following a period of market mayhem dominated by amateurs on Reddit's WallStreetBets and the Robinhood Markets Inc. trading app who collectively boosted the shares of GameStop Corp. and other companies that had fallen out of Wall Street's favor.
/on.wsj.com/3mIZp85
The Best Online Brokers, 2021
Nasdaq
Nellie S. Huang, contributor - Kiplinger
Online brokers are enjoying explosive growth as investors beat a path to their virtual doors. In fact, 2020 was a record year: More than 10 million new brokerage accounts were opened, many by first-time investors, according to market research firm J.D. Power, driven by the seemingly unstoppable bull market, commission-free trades and the pandemic lockdown all helped to break down investing barriers, both financial and emotional. And then there was the meme-stock frenzy (Game Stop, AMC Entertainment Holdings) that enticed hordes of eager investors to get in on the game.
/bit.ly/2XUgDVo
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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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| | | Jeff Bergstrom
Editor
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