| May 06, 2022 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | 
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| | | | | | Lead Stories | | | MIAX-parent Miami International Holdings confidentially files for U.S. IPO
Reuters
Miami International Holdings Inc, which owns the options exchange Miami International Securities Exchange (MIAX), said on Friday it has confidentially submitted paperwork with regulators for a U.S. initial public offering.
The Princeton, New Jersey-based exchange operator did not share any other details related to the terms of the offering and chose to keep its finances hidden from competition by confidentially filing initial paperwork with the U.S. Securities and Exchange Commission.
/jlne.ws/3FvzVCs
MSIM's baffling $400m options splurge; Funds owned or advised by the manager have spent vast sums on a USD/CNH strategy that appears not to have paid off
Ben St. Clair - Risk.net
At first glance, the Growth Portfolio mutual fund offered by Morgan Stanley Investment Management seems fairly straightforward, holding a selection of tech-heavy US stocks like Cloudflare, Doordash and Snowflake. But over the past five years, the nearly $10 billion-asset fund has also spent $150 million on something seemingly unrelated - a string of options to buy US dollar against the renminbi, which would only pay off if the Chinese currency collapsed in value.
/jlne.ws/3Fjz1sC
'Scared Like Everybody Else': Stock Markets Go From Shaky to Unhinged
Lu Wang and Elaine Chen - Bloomberg
A common warning on Wall Street for a decade is that trading desks have been overrun by people who are too young to know what it's like to navigate a Federal Reserve tightening cycle. They're finding out now.
In markets, there's turbulence, then there's whatever you call the last two days, when a 900-point Dow rally was followed 12 hours later by a 1,000-point decline. Hundreds of billions of dollars of value are conjured and incinerated across assets in the space of a day lately, a stark reversal from the straight-up trajectory of the post-pandemic era.
/jlne.ws/3KRl06B
Here's what's 'dangerous' about the latest stock market plunge
Brian Sozzi - Yahoo News
The Fed may no longer be a friend of investors, pros say, and that could be a major headwind to stocks in the near-term.
"What's dangerous about yesterday's huge market slump is that there must be an element of doubting the ability of there to be an effective 'Fed Put' in this cycle following a 30-40 year period where the central bank has almost always been able to come to the market's rescue," Deutsche Bank strategist Jim Reid said.
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U.S. Stocks Extend Selloff in Another Wild Session
Will Horner, Rebecca Feng and Gunjan Banerji - WSJ
U.S. stocks slipped Friday, extending their losses after one of Wall Street's worst selloffs since the pandemic began.
The Dow Jones Industrial Average lost 202 points, or 0.6%, after slumping more than 1,000 points Thursday, its worst day since 2020. The S&P 500 shed 0.6%, while the technology-heavy Nasdaq Composite lost 1%.
/jlne.ws/3vQKxsn
Investors Rush Into Defensive ETFs as Market Turbulence Grows
Hardika Singh - WSJ
Jittery investors are pouring money into exchange-traded funds tied to defensive sectors, seeking safety in a market that continues to be whipsawed by worries about rising interest rates.
Net inflows into defensive ETFsâor those related to the consumer staples, healthcare, utilities and real-estate sectors, along with precious metals, Treasurys and commoditiesâhave totaled $50 billion this year, according to Morningstar data through April. That sum has already outpaced the group's $42 billion in inflows for all of 2021 and is on track to top 2020's total of $75 billion as well.
/jlne.ws/37syN60
Why Are Markets So Volatile? (Radio)
Bloomberg (Audio)
Barry Ritholtz, founder of Ritholtz Wealth Management and Host of "Masters in Business," discusses what's behind volatile markets. Hosted by Paul Sweeney and Matt Miller.
/jlne.ws/3vQksJL
Dow craters 1,060 points for worst day in nearly 2 years as tech-stock weakness wipes out Fed rally
Matthew Fox - Business Insider
US stocks plunged on Thursday, with the Dow Jones Industrial Average falling 1,060 points and wiping out Wednesday's rally. The Nasdaq 100 fell as much as 6%, while the S&P 500 was down about 4%.
Thursday's decline represented the Dow's worst day since June 11, 2020, when the 30-member index plunged more than 1,800 points. Despite the sharp intra-day volatility, the Dow Jones and S&P 500 are only down 0.5% so far this week.
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Wild swings in stocks and bonds offer taste of more volatility to come given the risk U.S. inflation keeps rising
Vivien Lou Chen - MarketWatch
A 1,300-point drop in Dow Jones Industrial Average. A selloff in bonds that sends Treasury yields higher. Signs of panic selling on Wall Street. And a dollar soaring to some of its highest levels in two decades. All in a single day.
Thursday's price action offers "elements" of what may still be in store given the risk that U.S. inflation keeps rising even after the Federal Reserve delivers interest rate hikes, said FHN Financial's Jim Vogel. And it's a chance that can't be ignored, he said.
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Stock market selloff in 'liquidation' stage. Why it needs to get 'hotter' before it burns out.
William Watts - MarketWatch
This week's violent U.S. stock-market turnabout may have left investors feeling shaken, but a liquidation phase that may finally be under way will probably need to "get hotter" before it burns itself out, a top Wall Street chart watcher warned on Friday.
/jlne.ws/3ykCs0L
| | | | | | Exchanges | | | CME Group's launch of SOFR First for Options receives support from ARRC; New options will help the exchange-traded options market transition away from USD LIBOR ahead of its phase out in mid-2023.
Wesley Bray - The Trade
CME Group's launch of secured overnight financing rate (SOFR) First for Options, which aim to accelerate the growth of SOFR options trading, has been applauded by the Alternative Reference Rates Committee (ARRC). This initiative falls in line with supervisory guidance and the ARRC's suggestion to immediately suspend entering into new LIBOR contracts, as well as the SOFR First recommendation given by the Commodity Futures Trading Commission Market Risk Advisory Committee.
/jlne.ws/3LTUyur
Updated Listing Schedule for the Options on Three-Month Eurodollar Futures Contracts
CME Group
Pending all relevant Commodity Futures Trading Commission ("CFTC") regulatory review periods, Chicago Mercantile Exchange Inc. ("CME" or "Exchange") will amend the listing schedule for the Options on Three-Month Eurodollar Futures contracts as noted in Exhibit A below (the "Contracts").
/bit.ly/3P2O5ix
ASX crypto ETFs back in the race amid Cboe delays
Aleks Vickovich - Financial Review
Fund managers racing to launch cryptocurrency exchange-traded funds on the Australian Securities Exchange are buoyed by the release of new rules expediting their listing, as applicants to rival trading venue Cboe Australia are bogged down by a mysterious delay.
/jlne.ws/3KRlIAN
Updates on Client Margin in Relation to Derivatives Holiday Trading
HKEX
Reference is made to the circulars dated 7 April 2022 (Ref: MO/DT/085/22 and LSD/029/2022). For the implementation of derivatives holiday trading arrangement on Hong Kong public holidays 1 ("Derivatives Holiday Trading") with all MSCI futures and options as the first suite of Derivatives Holiday Trading products ("H Products") commencing on 9 May 2022, Hong Kong Futures Exchange Limited ("Exchange") would like to remind and provide further guidance to Exchange Participants ("EPs") on the minimum requirement of client margin.
/bit.ly/3sfQVHa
New Equity Options Classes
TMX
Bourse de Montréal Inc. (the Bourse) and Canadian Derivatives Clearing Corporation (CDCC) hereby inform you that at the opening of trading on Tuesday May 10, 2022, the following new equity options classes will be listed.
/bit.ly/3sgQUTq
| | | | | | Regulation & Enforcement | | | Gensler stresses SEC's commitment to stock market 'resiliency' amid selloff
Chris Matthews - MarketWatch
Securities and Exchange Commission Chairman Gary Gensler spoke Friday on the growing volatility in U.S. stock and bond markets, reassuring market participants that a primary focus of the agency is maintaining financial stability during times of stress.
"When it comes to markets, the test of a gold standard is that such markets can function in orderly times and in stress times," Gensler said in opening remarks at the SEC's annual conference on financial market regulation Friday. "Such resiliency helps ensure that shock waves don't propagate into the real economy."
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FIA joins response to FSB and CPMI-IOSCO on CCP recovery and resolution
FIA
FIA, along with the International Swaps and Derivatives Association and the Institute of International Finance, has commented on CCP recovery and resolution issues in response to a consultation paper published by the Financial Stability Board, the Committee on Payments and Market Infrastructures of the Bank for International Settlements and the International Organization of Securities Commissions.
/jlne.ws/3kLlUab
Archegos risk chief resolves some U.S. SEC claims
Reuters
The former chief risk officer of Archegos Capital Management has partially settled U.S. Securities and Exchange Commission claims he aided a fraud at Bill Hwang's private investment firm that left Wall Street banks with $10 billion in losses, a Wednesday court filing shows.
Scott Becker, who is cooperating with U.S. prosecutors in a related criminal case against Hwang, agreed not to commit further violations of securities laws.
/jlne.ws/388HKSc
| | | | | | Strategy | | | No Rebound in Sight for U.S. Tech Stocks After Sharp U-Turn
Michael Msika and Jonas Ekblom - Bloomberg
U.S. equity futures extended their slide on Friday, signaling continuation of a drop in tech stocks following the Nasdaq 100's biggest selloff since September 2020, as investors grapple with fears of an economic slowdown against tightening monetary policy.
/jlne.ws/3FuVwL9
Opinion: 8 ways to protect your money if you think stocks are headed even lower
Jeff Reeves - MarketWatch
I know what you're thinking: Why, oh why, didn't we all just "sell in May and go away" like that stupid Wall Street saying recommended?
On the heels of a 1/2-point boost to interest rates by the Federal Reserve on Wednesday - the biggest such increase in 20 years - the stock market sank on Thursday; the Dow Jones Industrial Average lost more than 3%, as did the S&P 500. Meanwhile, the tech-heavy Nasdaq Composite lost a staggering 5%.(will update)
/jlne.ws/3w6SSXS
Gold Rises as Investors Seeking an Inflation Haven Pour Into Gold ETFs
Debbie Carlson - Barron's
Gold didn't get the message that higher interest rates mean lower prices for the yellow metal.
The Federal Reserve raised rates by a widely expected 50 basis points (a half-percentage point) on Wednesday, signaling a series of rate hikes this year and a plan to reduce its balance sheet. Although gold slipped immediately after the Fed's move, prices resumed their climb on Thursday, and gold-market watchers say the metal still has more mettle in it.
/jlne.ws/3l5LaYZ
SPY June 13th Options Begin Trading
Nasdaq
Investors in SPDR S&P 500 ETF Trust (Symbol: SPY) saw new options become available today, for the June 13th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the SPY options chain for the new June 13th contracts and identified one put and one call contract of particular interest.
/jlne.ws/3kNS0Cg
| | | | | | Education | | | The 5 Main Option Greeks & What They Measure
Paul Kim - Business Insider
When trading stocks, making a profit â as well as minimizing risk â is one of the main things investors pay attention to. But for investors who are a little more advanced, they may want to try options trading, which comes with additional factors such as time decay and implied volatility, which come with complications of their own.
To keep track of these factors, there are something called Greeks. These metrics, represented by various letters in the Greek alphabet, quantify the effect that changes in various factors have on the price of an option.
/jlne.ws/3wctqzY
| | | | | | Miscellaneous | | | UAE Crypto News: Bankers Quit Jobs for Shot at Riches in 'Wall Street of Crypto'
Ben Bartenstein - Bloomberg
In the shadow of Dubai's sail-shaped Burj Al Arab hotel, crypto executives rubbed shoulders with Emirati royals, Wall Street bankers and Instagram influencers.
The festivities in late March were organized by Binance Holdings Ltd. in its de facto home of the United Arab Emirates, which is fast becoming a global hub for digital currencies. Co-founder and Chief Executive Officer Changpeng 'CZ' Zhao skipped the event as he recovered from Covid, but he was top of mind for partygoers who said they aspired to replicate his rapid ascent from software developer to one of the world's wealthiest people.
/jlne.ws/390ittl
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