 | | | | | | | | January 22, 2025 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | Intercontinental Exchange (ICE) reported a record 2 billion futures and options contracts traded in 2024, the highest volume in its history. This included 1.2 billion commodity contracts and 753 million interest rate derivatives. Energy derivatives drove much of the growth, with 655 million oil contracts and 404 million natural gas contracts traded, including records for Brent (346 million) and TTF gas (93 million). ICE's European interest rate markets also saw record volumes, with 467 million Euribor and 186 million SONIA contracts traded. ICE credited its multi-asset, multi-geography platform for enabling global risk management. ~JJL
| | | | | | Lead Stories | | | Nvidia Zero-Day Options Are the Next Big Bet for ETF Upstart; Man behind Jim Cramer funds says single-stock 0DTE will happen; Matt Tuttle finds a workaround for slew of planned products
Lu Wang and Vildana Hajric - Bloomberg
The ETF industryâEURâ¢s upstart-in-chief is back with another roll of the new-product dice âEUR" this time betting on a game-changing expansion of Wall StreetâEURâ¢s zero-day options boom.
Matt Tuttle, who struck gold with leveraged meme-stock funds but fell flat with his Jim Cramer ETFs, has filed to create a line of new offerings that will trade fast-twitch derivatives on popular companies beloved by the retail-investing masses. Think Nvidia Corp., Tesla Inc., MicroStrategy Inc. and more.
/jlne.ws/3WwQck3
This Earnings Season Is Looking Surprisingly Volatile
Gunjan Banerji - The Wall Street Journal
So far this earnings season, the average S&P 500 stock has swung by around 5.5% after reporting resultsâEUR"well above the roughly 3.9% move up or down anticipated by derivatives traders, according to Citi analysts.
/jlne.ws/40HOKhl
Trump's murky tariff policy sets the stage for market volatility
Suzanne McGee, Saeed Azhar, Tom Westbrook and Marc Jones - Reuters
Investors were tentatively breathing a sigh of relief on Tuesday as U.S. President Donald TrumpâEURâ¢s initial policy diktats on tariffs were less stringent than they had feared, despite setting a tone of uncertainty in global markets.
Trump had vowed to immediately impose steep tariffs of 10% to 20% on global imports into the U.S. and 60% on goods from China.
/jlne.ws/3Wx3Q70
Trump Tariff Uncertainty Drives Currency Roller Coaster; Traders are betting on more rapid swings in coming months
Matt Grossman and Paulo Trevisani - The Wall Street Journal
Currency markets have gyrated during the first days of the new Trump administration with little sign of a clear direction. Traders are betting on more rapid swings in coming months.
On Inauguration Day, the U.S. dollar fell by 1% against a basket of foreign currencies following a Wall Street Journal report suggesting that no tariffs would land on day one. In the evening, the greenback rebounded after President Trump threatened new 25% tariffs on Canada and Mexico as soon as Feb. 1âEUR"but it gave back those gains again on Tuesday.
/jlne.ws/4apYAI1
Derivatives Group Publishes Paper on Position Transfers
Press Release via Traders Magazine
DMIST, the Derivatives Market Institute for Standards, today published a proposed standard aimed at improving the processing of position transfers in the exchange-traded derivatives markets. This is the third standard proposed by DMIST, an independent organization formed by FIA in July 2022, to promote greater efficiency in the trading and clearing workflow for derivatives. Today's action kicks off a consultation process with industry stakeholders that will last until March 21. DMIST aims to finalize the standard by the end of the Q2 2025. Any member of the public may submit a comment, and DMIST will post all comments at its website.
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Transcript: Markets brace for Trump-era volatility; Sonja Hutson talks to George Steer and Joe Leahy
Sonja Hutson - Financial Times
Good morning from the Financial Times. Today is Wednesday, January 22nd. And this is your FT News Briefing. Netflix just broke a subscriber record. And Wall Street investors are bracing for a new period of volatility. Plus, China says its economy grew by 5 per cent last year, but people on the ground arenâEURâ¢t feeling it.
Joe Leahy
One person in a state-owned bank said that his lending portfolio is 20 per cent smaller this year than in the past.
/jlne.ws/3CnpQKz
BlackRockâEURâ¢s Larry Fink says bitcoin could reach $700,000 if this happens
Frances Yue - MarketWatch
ThatâEURâ¢s Larry Fink, chief executive at BlackRock Inc., the worldâEURâ¢s largest asset manager, who says that bitcoin could reach $700,000 if more funds consider adding a 2% to 5% allocation into the crypto.
Last year, BlackRock launched its iShares Bitcoin Trust and iShares Ethereum Trust âEUR" exchange-traded funds investing directly into bitcoin and ether, respectively âEUR" after FinkâEURâ¢s stance on crypto took a sharp turn.
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| | | | | | Exchanges | | | Cboe Options introduces new Cboe Timestamping Service
Maria Nikolova - FOW
Effective trade date January 27, 2025, all Cboe-affiliated U.S. Options Exchanges are introducing the new Cboe Timestamping Service to provide market participants with additional quote, order and cancel related timestamp information, subject to regulatory review.
This service will enable Members and TPHs to self-subscribe and receive timestamp information on a T+1 basis for select messages.
/jlne.ws/40uEOGu
Deribit's Crypto Trading Volume Nearly Doubled to Over $1T in 2024; Total trading volume surged 95%, with options accounting for a giant share of the total platform activity.
Omkar Godbole - CoinDesk
Need evidence of the crypto market's maturation? Look no further than Deribit, the crypto exchange that registered record trading volumes in 2024. Total trading volume in Deribit's product suite, which comprises crypto options, perpetual futures, volatility futures, and spot market, rose 95% from $608 billion in 2023 to $1.185 trillion in 2024.
/jlne.ws/40jbaEg
ICE Announces That a Record 2 Billion Contracts Traded in 2024; Includes Record 1.2 Billion Commodity Contracts and Record 753 Million Interest Rates Contracts
Intercontinental Exchange, Inc.
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of technology and data, today announced that a record 2 billion futures and options traded on ICE in 2024, marking the highest volume year in ICE's history, including a record 1.2 billion commodity contracts and a record 753 million interest rate derivatives contracts. ICE is home to the largest and most liquid energy derivatives markets in the world. 2024 marked the largest volume year for the number of oil contracts traded on ICE with a record 655 million oil futures and options contracts traded, including a record 346 million Brent futures and options, a record 92.8 million Gasoil futures and options contracts, 21 million ICE Dubai (Platts) futures and options contracts and 6 million ICE Murban futures contracts.
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| | | | | | Regulation & Enforcement | | | Trump to converge TradFi, crypto with regulatory clarity: Franklin CEO; Franklin Templeton CEO Jenny Johnson predicts that blockchain will ultimately be used to build ETFs and mutual funds because of the technology's efficiency.
Stephen Katte - CoinTelegraph
Franklin Templeton CEO Jenny Johnson believes the new Trump administration will begin working toward clearer regulations by integrating traditional finance and crypto. "I think that the thing with the Trump Administration is we're going to start to see them converge more, the TradeFi and the crypto, which is something that we need," she told Bloomberg in a Jan. 21 interview. "We need to have some sort of regulatory clarity so that you could bring these together because, fundamentally, it will drive out costs, and there is great innovation that the technology enables," Johnson added.
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| | | | | | Education | | | Occurrences Volatility and Correlations
tastylive (Video)
Options pricing models all revolve around probability theory. Though the math is done for you by your trading platform, we believe that understanding the number crunching behind the scenes will jump-start your trading. Join us as we show you how it's done.
/jlne.ws/4hmFhl5
| | | | | | Strategy | | | Trump Could Be Good for Tech Stocks. This Trade Pays Off if They Rally.
Steven M. Sears - Barron's
Major technology leaders were honored guests at President TrumpâEURâ¢s inauguration on Monday. Meta PlatformsâEUR⢠Mark Zuckerberg, Amazon.comâEURâ¢s Jeff Bezos, AppleâEURâ¢s Tim Cook, and AlphabetâEURâ¢s Sundar Pichai all sat near TrumpâEURâ¢s family.
On Tuesday, Trump and OpenAI, SoftBank Group, and Oracle announced an investment of as much as $500 billion in artificial-intelligence infrastructure.
/jlne.ws/4h4xd8V
Does no-hedge strategy stack up for mag seven mavericks? At Amazon, Meta and Tesla, the lack of FX hedging might raise eyebrows, but isn't necessarily a losing technique
Cole Lipsky - Risk.net
The so-called magnificent seven - the seven largest US tech companies that famously make up more than a third of the S&P 500 by market cap - are among the world's largest firms. They also have some of the greatest geographical distributions - in some cases operating in over 100 countries. Yet filings for these tech giants show that three of them - Amazon, Meta and Tesla - choose not to hedge their day-to-day foreign exchange exposures. They reveal no holdings of offsetting FX derivatives
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| | | | | | Events | | | Global exchange-traded derivatives (ETD) markets are on track to set a record for the sixth consecutive year in 2024. Join Liquidnet's Michael du Plessis, global head of listed derivatives, and Alex Grinfeld, co-head of listed derivatives Americas, as they discuss key trends driving growth in trading volume and open interest across interest rate, equity, and commodity futures and options. Hosted by Will Acworth, global head of market intelligence at FIA, the webinar takes place on Wednesday, February 5, 2025, from 10:30 to 11:30 a.m. ET. Register HERE. ~JJL
| | | | | | Miscellaneous | | | CEOs Launch War Rooms, Hotlines to Cope With TrumpâEURâ¢s Order Blitz; Executive orders bring promised changes and surprising risks for business leaders
Chip Cutter and Alexander Saeedy - The Wall Street Journal
JPMorgan Chase set up a war room. The law firm Fisher Phillips created an immigration hotline to help clients manage potential workplace raids. Manufacturers and retailers have teams working to soften the blow of potential new tariffs.
The blitz of executive orders and memos from President Trump left business leadersâEUR"some still in the tuxedos they wore to White House inaugural galasâEUR"scrambling to make sense of sweeping changes to tax, immigration, trade and energy policies.
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