| August 29, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
MWE SHORT: Terry Duffy - My Road and the Industry Challenge
JohnLothianNews.com
When starting your career, it's best to think about where each opportunity can take you, rather than being envious of your peers. Terry Duffy, chairman and chief executive officer of the CME Group, gives a brief glimpse of how he entered the financial industry and addresses how his audience should utilize each opportunity they receive. According to Duffy, we should not look at our careers in a "near-sighted" way, but instead look at long-term possibilities each job can eventually lead to.
Watch the video »
| | | | | | Lead Stories | | | Meme Stock Mania Is Back and Wall Street Says It's Here to Stay
Bailey Lipschultz - Bloomberg
Wall Street says the meme stock is here to stay.
Born of lockdown boredom, no-fee brokers and social-media chatrooms, the phenomenon drew in a new generation of traders, who fueled massive rallies by banding together to pump up the stock prices of companies Wall Street was betting against.
/jlne.ws/3CCmq4o
Powell Heaps Pressure on Risk Sentiment as More Catalysts Loom
Abhishek Vishnoi and Michael G Wilson - Bloomberg
The dog days of summer are firmly over as global investors absorb Federal Reserve Chair Jerome Powell's stern message that interest rates are going higher for longer in a painful fight against inflation.
With further catalysts for volatility ahead -- from the shutting of the key Nord Stream gas pipeline to Europe for maintenance to a ramp up of the Fed's balance sheet rundown to crucial US labor data -- caution is high after Friday's post-Jackson Hole stock slide. That was sparked by Powell's rebuttal of the notion that the trajectory of monetary tightening could soon be tempered.
/jlne.ws/3RhIEN1
Global equities drop as Jay Powell's comments drag markets lower
Hudson Lockett, Philip Stafford and Nicholas Megaw - Financial Times
Global stocks weakened, Treasury yields climbed and global currencies lost ground against the dollar on Monday after central bankers warned investors to prepare for a sustained period of higher interest rates.
Policymakers from the US Federal Reserve and European Central Bank used speeches at last week's annual meeting in Jackson Hole, Wyoming, to reiterate their commitment to fighting inflation, despite the risk of pushing the economy towards recession.
/jlne.ws/3cuCBpL
ECB Economist Calls For 'Steady' Interest Rate Rises
Barron's
The European Central Bank should continue to raise interest rates at a "steady pace", its chief economist said Monday, as soaring inflation strengthened calls for the Frankfurt-based institution to hike more aggressively.
Lifting interest rates in increments that were "neither too slow nor too fast" was important due to the "high uncertainty" around future inflation, as the war in Ukraine and rocketing energy prices shake the eurozone, ECB chief economist Philip Lane said in a speech in Barcelona.
/jlne.ws/3wG6XMN
Economic Recession Unlikely Anytime Soon so Buy Commodities: Goldman
Matthew Fox - Markets Insider
Investors should buy commodities as a recession outside of Europe appears unlikely over the next year, Goldman Sachs said in a note on Monday.
The bank said that heightened fears of an imminent recession have pummeled commodity prices in recent months, making them especially ripe to be purchased by investors looking for a good deal.
/jlne.ws/3TCElhB
| | | | | | Exchanges | | | ETD Volume - July 2022
FIA
Worldwide volume of exchange-traded derivatives reached 6.57 billion contracts in the month of July, the third highest monthly total ever recorded. The July total was down 6.8% from June 2022's record but up 33.6% from July 2021.
On a year-to-date basis, volume in the first seven months of the year was 44.88 billion contracts, up 32.7% from the first seven months of 2021. The majority of that increase came from equity index contracts.
Total open interest at the end of July was 1.11 billion contracts. The July total was up 2% from June 2022 and up 0.6% from a year ago.
/jlne.ws/3csR5GJ
CME Group Announces Launch of Euro-denominated Bitcoin and Ether Futures
CME
CME Group, the world's leading derivatives marketplace, today launched Bitcoin Euro and Ether Euro futures. "The launch of these new futures contracts builds on the strong growth and deep liquidity we have seen in our existing U.S. dollar-denominated Bitcoin and Ether futures contracts," said Tim McCourt, Global Head of Equity and FX Products, CME Group. "Our new Bitcoin Euro and Ether Euro futures will provide institutional clients, both within and outside the U.S., with more precise and regulated tools to trade and hedge exposure to the two largest cryptocurrencies by market cap." Bitcoin Euro and Ether Euro futures contracts will be sized at five bitcoin and 50 ether per contract. These new contracts will be cash-settled, based on the CME CF Bitcoin-Euro Reference Rate and CME CF Ether-Euro Reference Rate, which serve as once-a-day reference rates of the euro-denominated price of bitcoin and ether.
/bit.ly/3QWHuH2
| | | | | | Regulation & Enforcement | | | Bad faith requirement revived in Commodity Exchange Act suits
Reed Smith LLP - Lexology
Last month, the U.S. Court of Appeals for the Seventh Circuit, in an opinion issued by Judge Frank Easterbrookin in Brian Barry et al. v. Cboe Global Markets Inc., et al., affirmed the dismissal of a lawsuit brought by private plaintiff traders against the Chicago Board Options Exchange and its affiliates (Cboe) for Cboe's alleged failure to curb manipulation of prices related to Cboe Volatility Index contracts (VIX ) in violation of the Commodity Exchange Act (CEA).
/bit.ly/3Ku2BOC
| | | | | | Moves | | | ON THE MOVE: Northern Trust Names Benjamin Bobroff; Moti Mizrahi to OptionMetrics
Anna Lyudvig - Traders Magazine
OptionMetrics, an options database and analytics provider for institutional investors and academic researchers worldwide, has added Diarmuid Kelleher as Chief Financial Officer and Moti Mizrahi as Vice President, Product & Technology. Kelleher draws on over two decades of experience leading financial planning and analysis, and as a CPA and investment banker. Most recently he was VP, Head of Financial Planning and Analysis at AST, a tech-enabled, integrated, professional services firm, and Senior Managing Director, Head of financial planning and analysis at OneMain Financial. Mizrahi draws on over 20 years building and leading transformational technology projects and teams with a focus toward achieving specific business goals. Most recently, he was CTO at Charidy and Negba Group.
/jlne.ws/3CFkyrz
| | | | | | Strategy | | | Option Traders Lost $1 Billion in Pandemic. Here Are Some Ways to Recover
Ivan Castano - Nasdaq
Newbie investors delving into options during the pandemic lost a whopping $1 billion ($5 billion accounting for fees). But for those who believe a new bull market is in the offing, making bullish bets on beaten-down communications, consumer and tech stocks could pay off, analysts say.
"If I were an options trader, I would be looking at Netflix, Amazon or Tesla," says Sam Stovall, who heads research at CFRA. "The worst becomes first [in a market recovery]. Communications services, consumer discretionary and tech have done worse this year."
/jlne.ws/3AUKGgH
Stocks head for more pain as 3,900 becomes new line in the sand for the S&P 500
Joseph Adinolfi - MarketWatch
As U.S. stocks continued to slide on Monday, a handful of technical analysts warned their clients to brace for more pain ahead during the coming weeks as 3,900 emerges as the new the line in the sand for the S&P 500.
Based on volume-weighted technical indicators, Jonathan Krinsky, chief market technician at BTIG, expects 3,900 will likely serve as the next key support level for stocks. While Krinsky doesn't presently expect stocks to return to their mid-June lows, a sustained break below 3,900 by the S&P 500 might be enough to change his mind.
/jlne.ws/3R9TG78
| | | | | | Miscellaneous | | | Is $110mn man Jake Freeman lucky gambler or conviction investor?
Patrick Jenkins - Financial Times
When news emerged recently of the 20-year-old student who had made $110mn buying and selling shares in a tired homeware brand, there was an understandable uproar. The Financial Times revealed Jake Freeman had invested $27mn in Bed Bath & Beyond in July, selling it only a few weeks later for nearly five times as much.
/jlne.ws/3Kv6uCR
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