| July 14, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
Veteran Trader Joe Corona Shares His Best Week Trading Ever
JohnLothianNews.com
Joe Corona's trading group derived its name from its experience in the 1987 stock market crash. He and his partner Bruce Lawrence named the firm "Meltdown Trading."
Watch the video »
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JLN Interviews Simplex CEO Erik Swanson at OIC 2022
JohnLothianNews.com
JLN interviewed Erik Swanson, the CEO of Simplex Trading, at the 2022 OIC conference in San Antonio, Texas. This is the last video in our JLN Industry Leader video series from the conference.
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| | | | | | Lead Stories | | | Nancy Pelosi's husband just invested millions into NVIDIA and sold large amounts of Visa and Apple stocks and call options
Madison Hall - Business Insider
Speaker of the House Nancy Pelosi's husband, Paul Pelosi, exercised millions of dollars in NVIDIA call options and sold large quantities of Apple and Visa options and shares in late June, according to a new congressional financial disclosure.
Paul Pelosi exercised 200 call options, or 20,000 shares, of NVIDIA worth between $1 million and $5 million, according to the disclosure, which Nancy Pelosi filed Thursday with the House of Representatives.
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Will last look disclosures come to FX derivatives?
Lukas Becker - Risk.net
Whenever a liquidity provider publishes a standardised disclosure for foreign exchange dealing terms online, as required by the Global FX Committee, we read each one with interest.
The most interesting aspect, of course, is whether the LP is explicitly saying that it will not be applying any additional hold times on top of any last look checks it may need to do to ensure prices have not gone stale. These additional hold times have effectively been outlawed by the GFXC and in subsequent comments from the UK's Financial Conduct Authority.
/jlne.ws/3P9iH1H
Single-Stock ETFs to Allow U.S. Investors to Make Big Bets on Popular Stocks; U.S. regulators caution that the new funds, like ones already on the market in Europe, carry risks
Karen Langley - WSJ
Investors in U.S. markets will soon have a new way to supersize bets on high-profile stocks. Regulators are suggesting they do so with care. AXS Investments on Thursday plans to launch a set of exchange-traded funds tied to shares of PayPal Holdings Inc., Nike Inc., Pfizer Inc. and Nvidia Corp. that are designed to amplify their daily performance, or the inverse of that performance. Another fund will seek to produce the inverse of Tesla Inc.'s daily return, without using leverage.
/jlne.ws/3uMXxOA
Bearish Tesla Bet Is Among First Single-Stock ETFs to Hit US
Elaine Chen and Katherine Greifeld - Bloomberg
America's first leveraged single-stock ETFs will debut Thursday, launching into a miserable year for US equities and accompanied by a barrage of regulator warnings over their potential risks.
AXS Investments is launching eight exchange-traded funds that allow investors to make inverse or leveraged bets on single companies such as Tesla Inc., Nvidia Corp. and PayPal Holdings Inc. These products are big business in Europe, but AXS's will be the first of their kind in the world's largest market.
/jlne.ws/3aBS5Ht
As Volatility Roils Bonds and Currencies, Stocks Appear Stable
Eric Wallerstein - WSJ
The bond and foreign-exchange markets are undergoing their sharpest bouts of volatility since the onset of the Covid-19 pandemic. The stock market might have some catching up to do.
The difference in the volatility of the bond and stock markets is at the starkest level since at least 2000, according to analysts at BofA Global Research. They call the gap unsustainable and say the stock market is underestimating the risk of a recession.
/jlne.ws/3AMwhni
A truly massive interest rate hike is now on the table
Julia Horowitz - CNN Business
Central banks have made clear that after a sluggish start, they're serious about putting a lid on inflation. Now, as prices soar even faster than expected, they're weighing increasingly drastic options.
What's happening: Investors see a growing probability that the Federal Reserve could hike interest rates by a full percentage point at its next meeting for the first time in the modern era. In June, the Fed raised interest rates by three-quarters of a percentage point, which it hadn't done since 1994.
/jlne.ws/3OmhZNv
What's Next for the Fed After Inflation Shocks Again
Barron's
Inflation just keeps getting hotter, hotter, and hotter, and the Federal Reserve response is getting bigger, bigger, and bigger.
Futures markets are now pricing in a 75% chance the Fed will raise rates by 100 basis points at its meeting ending July 27, after the latest data showed inflation running at a stronger-than-expected 9.1% year-over-year rate. And that follows a half-point hike by the Fed in May and a three-quarters-points increase in June.
Crypto Trading Volume Tumbled in June to the Lowest Since 2020
Enrique Roces - Bloomberg
Cryptocurrency trading volumes have plummeted amid a dreadful first half of the year for the industry.
Spot and derivatives volumes have declined across exchanges, falling more than 15% since May to around $4.2 trillion and reaching the lowest since January of last year. The month of June alone saw spot volumes drop nearly 28% to $1.41 trillion as Bitcoin tumbled, the lowest since December 2020, according to data compiled by CryptoCompare.
/jlne.ws/3uRInYr
| | | | | | Regulation & Enforcement | | | Global regulators back 'same risk, same regulation' for stablecoins
Huw Jones - Reuters
Major stablecoins must comply with the same safeguards as traditional forms of payments, global regulators said on Wednesday, tightening controls over a battered crypto sector. Stablecoins are cryptocurrencies designed to have a stable value relative to traditional currencies, or to a commodity, to avoid the volatility that makes bitcoin and other digital tokens impractical for most commerce.
/jlne.ws/3bZszME
OTC derivatives provider Sirius Financial Markets surrenders licence, former executives handed eight-year bans
ASIC
Following an ASIC investigation, over-the-counter (OTC) derivatives provider Sirius Financial Markets Pty Ltd, trading as 'Trade360', has surrendered its Australian Financial Services licence.
/jlne.ws/3OeN5qg
| | | | | | Moves | | | JP Morgan industry veteran to join Tradeweb as president; Incoming president has spent the last 27 years of his career at JP Morgan, most recently as global head of linear rates and co-head of North America rates trading.
Wesley Bray - The Trade
Tradeweb has appointed industry veteran Thomas Pluta as its next president, joining the firm as president-elect in October and as president on 1 January 2023. He joins Tradeweb from JP Morgan, where he spent 27 years in a variety of roles, most recently as global head of linear rates trading and co-head of North America rates trading.
/jlne.ws/3caAtmv
| | | | | | Strategy | | | Linking the performance of vanilla options to the volatility premium
Olivier Daviaud and Abhishek Mukhopadhyay - Risk.net (Subscription)
The advent of quantitative investing has made it increasingly important to understand the performance drivers of systematic strategies that use derivatives, such as those based on the sale of options. In this paper Olivier Daviaud and Abhishek Mukhopadhyay introduce a new formulaic representation to analyse the performance of delta-hedged vanilla options, and as a by-product provide an explicit link between that performance and the so-called volatility premium
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Stocks Dodge an Inflation Wipeout: Explaining the Tepid Reaction
Lu Wang and Emily Graffeo - Bloomberg
Data that landed like a gut punch on anyone hoping inflation had receded was received with notable poise by investors. Why that happened was the subject of frantic speculation Wednesday on Wall Street.
While odds of draconian rate hikes jumped, so did shares of semiconductor producers, retailers and automakers. Tech stocks as tracked by the Nasdaq 100 Index swung almost 3% from their lows as Tesla Inc., Amazon.com Inc. and Nvidia Corp. ended firmly in the green.
/jlne.ws/3z7AqRi
| | | | | | Miscellaneous | | | Who Owns All the Bitcoin? Those Who Got Into Crypto Early; The early entrants into digital assets scooped up much of the wealth. And the volatility along with it.
Victoria Vergolina - Bloomberg
Since the founding document that led to the invention of Bitcoin first appeared in 2008, Bitcoin's true believers have adopted a philosophy that resembles "one for all and all for one" (or at least, all who believe in Bitcoin). Bitcoin is often touted as a means of improving financial inclusion, an invention that allows people oppressed by their governments to maintain or reclaim a sense of freedom. In Bitcoin, everyone's equal - or so the theory goes. But does the theory match the reality of the ecosystem?
/jlne.ws/3z2ltQI
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