| April 18, 2024 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | 
Options Discovery Episode 32: Portfolio Margining in Options; Doug Engmann, Senior Consultant at SageTrader LLC, Discusses This and More With JLN's Asma Awass.
JohnLothianNews.com
In this episode of Options Discovery, Asma Awass explores portfolio margining in options. This episode includes a breakdown of what portfolio margin accounts are and how they different from strategy based margin accounts. Asma then sits down with Doug Engmann, a senior consultant at SageTrader, who shares more insight into his role in making portfolio margining mainstream. You can check out SageTrader here: https://sagetrader.com/
Watch the video »
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Portfolio Margining in Options: Doug Engmann, Senior Consultant at SageTrader LLC, Discusses Portfolio Margining and It's History In This Options Discovery Full Interview
JohnLothianNews.com
In this Options Discovery full interview, Asma Awass speaks with Doug Engmann, a senior consultant at SageTrader. Doug addresses a variety of topics from his career, including what got him started in the options industry. He gives more insight into what portfolio margining is and he goes deeper into the influential role he had in making portfolio margin accounts mainstream in the options industry. You can check out SageTrader here: https://sagetrader.com/
Watch the video »
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| | | | | | Lead Stories | | | Oil Traders Wager on $250 Price by June as War Risk Escalates
Devika Krishna Kumar and Alex Longley - Bloomberg
Oil traders piled into more than 3 million barrels worth of options contracts in a bet that prices would spike to $250 a barrel by June as geopolitical risks remain elevated. About 3,000 lots of June $250 call options in US crude traded for a penny each on Tuesday, according to data compiled by Bloomberg. It was likely a "lottery ticket" that might pay off if prices spike to unheard of levels by the middle of next month, although the trade appeared to be paired with $25 put options, which could also signal a broader macroeconomic strategy, some traders and brokers said.
/jlne.ws/3JlBsh9
***** I hope the $250 calls are part of a spread and just insurance.~JJL
European Gas Options-Buying Jumped During Recent Price Swings; Volume of options traded per day doubled earlier this week
Priscila Azevedo Rocha - Bloomberg
Intense swings in European natural gas prices have prompted traders to pile into options contracts, with investors seeking to protect themselves against losses as the conflict in the Middle East risks escalation.
The volume of Dutch natural gas options traded earlier this week surpassed 100,000 per day, according to data from Intercontinental Exchange Inc. That's almost 50% higher than late last week, the data show.
/jlne.ws/3U3chEU
Wobbling US stocks could push volatility-linked funds to ramp up selling
Saqib Iqbal Ahmed - Reuters
Volatility-linked investment strategies are joining the nascent sell-off in U.S. stocks and could help accelerate declines if market gyrations keep increasing.
Volatility control funds - systematic investment strategies that typically buy equities when markets are calm and sell when they grow turbulent - hoovered up stocks as the S&P 500 marched to record highs this year.
/jlne.ws/4d6c6Bl
Wall Street's 'fear gauge' surges as volatility reawakens across markets
Joseph Adinolfi - MarketWatch
After a protracted lull, volatility across markets has reawakened in April as Wall Street's "fear gauge" has surged to its highest level since Halloween.
The Cboe Volatility Index VIX, known as Wall Street's "fear gauge," traded as high as 19.56 on Tuesday, its highest intraday level since Oct. 31, bringing it to within a whisker of its long-term average of 19.60.
/jlne.ws/4cWyGfT
DJT Stock Jumps. The Truth Social Owner Is Showing Stockholders How to Block Short Sellers.
Adam Clark - Barron's
Shares of Trump Media & Technology Group shot higher Thursday after starting the day in the red. The parent of Truth Social is advising its stockholders on how to avoid their shares being lent to short sellers as it looks to curb bets against its stock.
/jlne.ws/3U3avne
| | | | | | Exchanges | | | Miami International Holdings Announces Untimely Passing of MGEX CEO Mark Bagan
MIAX
Miami International Holdings, Inc. (MIH), a technology-driven leader in building and operating regulated financial markets across multiple asset classes and geographies, today announced the untimely passing of Mark G. Bagan, Executive Vice President - U.S. Futures Strategy of MIH and Chief Executive Officer of Minneapolis Grain Exchange (MGEXâ¢).
Mr. Bagan began his career at MGEX in 1987, holding various positions until his appointment to President and Chief Executive Officer in July 2005. During his tenure, Mr. Bagan was instrumental in guiding MGEX to record volume levels for MGEX's flagship contract, Hard Red Spring Wheat, and in transitioning MGEX futures contracts to exclusively electronic trading. In 2020, Mr. Bagan oversaw the acquisition of MGEX by MIH on behalf of MGEX, and continued to lead MGEX following the closing of the transaction until his passing.
/jlne.ws/4aEhk5Q
OCC Comment on BCBS-CPMI-IOSCO Consultative report, Transparency and responsiveness of initial margin in centrally cleared markets
Megan M. Cohen, General Counsel and Corporate Secretary - OCC
The Options Clearing Corporation ("OCC") appreciates the opportunity to provide comments on the BCBS-CPMI-IOSCO (collectively, the Joint Working Group on Margin, or "JWGM") Consultative report, Transparency and responsiveness of initial margin in centrally cleared markets - review and policy proposals (the "Report"). As a systemically important central counterparty ("CCP") and the sole US CCP for listed equity options, OCC is pleased to participate in the ongoing dialogue between CCPs, clearing members, end users, and international standard setting bodies on optimizing margin transparency in cleared markets.
/jlne.ws/49GrRME
NSE to launch derivatives on Nifty Next 50 Index (NIFTYNXT50) from April 24, 2024
National Stock Exchange of India
National Stock Exchange of India (NSE), the world's No 1 derivatives exchange in the year 2023 based on contracts traded, has received approval for Derivatives on Nifty Next 50 index (NIFTYNXT50) from the Securities and Exchange Board of India (SEBI) and will launch these contracts from April 24, 2024. Exchange will offer 3 serial monthly index futures and index options contract cycle. The cash settled derivatives contracts will expire on the last Friday of the expiry month.
/jlne.ws/3xDvWUh
Position Limits - Equity Listed Products
TMX
The applicable position limits for share futures and options on stocks, exchange-traded funds, and trust units have been updated and are reflected in the position limit file and table1 below. The position limit file is retrievable here.
/jlne.ws/4aErRhs
Eurex Home Market Settlement drives the further unification of the single stocks derivatives market
Eurex
The growth of European single stocks derivatives (SSDs) created a large and diverse range of products for equity market exposure. However, this growth came with complexity, often adding costs to trading. As the key hub for the European market, Eurex has undertaken constant upgrades to ensure cost-efficiencies for traders. The newest feature is enabling the home market settlement. While equity derivatives investors can take positions in OTC and structured products, changes such as stricter regulatory enforcement of uncleared margin and the demand for higher transparency made more traders choose listed venues to trade single stock contracts.
/jlne.ws/4cYLqmc
| | | | | | Regulation & Enforcement | | | Top US markets regulator probing insider trading guardrails
Chris Prentice - Reuters
The U.S. Securities and Exchange Commission is scrutinizing whether investment advisers and other firms have strong enough policies to ensure nonpublic information is not misused to gain an illegal edge in trading, a top official told Reuters.
The SEC is looking to crack down on ineffective policies and procedures as part of broader insider trading scrutiny, Gurbir Grewal, the SEC's enforcement director, said in a recent interview. Under Democratic leadership, the agency has sought to charge more individuals for misconduct and pushed for higher penalties when negotiating with companies to resolve investigations into compliance violations and misconduct.
/jlne.ws/4aXvS08
| | | | | | Technology | | | HKEX To Develop Orion Derivatives Platform, Providing Best-In-Class Trading, Clearing And Risk Management Solutions For Global Clients
HKEX
HKEX is launching the development of a proprietary derivatives platform to address rapidly evolving client needs; New platform will give HKEX capability to offer near 24-hour derivatives trading, introduce new products and provide enhanced efficiency, elevating Group's competitiveness as a global exchange; ODP platform development ongoing; system migration will be carried out in phases to ensure smooth transition; market rollout expected in 2028. Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Thursday) the development of the Orion Derivatives Platform (ODP), offering enhanced trading, clearing and risk management capabilities. This new platform, being developed in-house by HKEX's technology teams with expected launch in 2028, will help differentiate the Group's derivatives offerings and elevate its competitiveness in the global derivatives marketplace.
/jlne.ws/3Uob90b
| | | | | | Moves | | | Hedge fund Citadel to expand its London office space with tower move; Ken Griffin's firm will move into British Land's flagship development at Broadgate
Joshua Oliver and Costas Mourselas - Financial Times
Ken Griffin's Citadel has agreed a ''dramatic increase" of its London office footprint, with a deal to move into British Land's new flagship City tower. Hedge fund Citadel and its sister firm, market-maker Citadel Securities, have agreed to pre-let at least 250,000 sq ft, or a third of the space, at 2 Finsbury Avenue. The building, part of British Land's joint venture with Singapore's GIC at Broadgate, is under construction and due to be completed in 2027.
/jlne.ws/3U5eX4N
| | | | | | Strategy | | | VIX Futures Backwardation
Cboe (Video)
In #Vol411, Scott Bauer @cboesib lets us know that earlier this week on Tuesday, the $VIX Index hit 19.56 (its highest intraday level since October 31 of last year), the #VIX futures term structure remains in a state of backwardation and more.
/jlne.ws/3U797jH
| | | | | | Miscellaneous | | | Jamie Dimon calls bitcoin a 'fraud' and a 'Ponzi scheme' â and says the crypto is hopeless as a currency
Theron Mohamed - Business Insider
Bitcoin is a scam and fails as a currency, Jamie Dimon said.
"If you mean crypto like bitcoin, I've always said it's a fraud," the JPMorgan CEO told Bloomberg TV on Wednesday.
"If they think they're a currency, there's no hope for it. It's a Ponzi scheme," he added.
/jlne.ws/3Js8Oeh
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