| June 20, 2023 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | One Big Bet: Options Traders Are Gung-Ho on the Stock Market's Rally
Eric Wallerstein - The Wall Street Journal
Stock-market fear has ebbed in the options market now that everyone wants a piece of the rally. Traders' demand for stocks tied to the AI boom has bled through to small caps, regional banks and even stocks threatened by artificial intelligence, brewing a potential resurgence in volatility. Some examples from the options market: A five-fold increase in the number of call options tied to shares of Nvidia, Intel and Advanced Micro Devices changing hands each day relative to the start of the year. Call options give the right to buy shares at a certain price and date, often signaling bullishness. Record call trading tied to the S&P 500. Skewâan options-based measure of pessimism vs. optimismâis at its most bullish levels since at least 2019, according to Cboe data.
/jlne.ws/46bp5OP
Analysis: Forex derivatives nudged out into the open as regulations increase costs
Laura Matthews - Reuters
Foreign-exchange investors are moving more of their over-the-counter (OTC) derivatives trades to lookalike products on exchanges to avoid higher costs due to recent global regulations, helping inject transparency into a multitrillion-dollar market that is largely hidden from the public eye. The growing interest in clearing trades through an exchange comes as regulations capture more users of these contracts, bolstering the need to shift away from bilateral trading and manage rising compliance cost.
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FLASH FRIDAY: The Evolution of Retail Options Trading
Editorial Staff - The Trade
It can be said that a financial market hasn't truly arrived until it has been spotlighted, and quite possibly raked over the coals, by a mainstream, non-financial media outlet. To wit, The Economist, the revered British weekly periodical whose broad remit spans current affairs, international business, politics, technology, and culture, recently wrote about retail options trading. "Retail investors are losing billions buying stock options," the March 2023 article headline blared. "The latest fad is contracts with just hours left before expiration," the subhead stated, implying that short-dated options have the staying power of dogecoin.
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Trading Technologies establishes new FX business line, TT FX, appointing industry veteran Tomo Tokuyama to lead initiative; First phase of launch to provide connectivity to major ECNs for spot FX trading on TT platform
Trading Technologies
Trading Technologies International, Inc. (TT), a global capital markets technology platform provider, today announced that the firm has established a new foreign exchange (FX) business unit, TT FX, and appointed industry veteran Tomo Tokuyama to lead it. Tokuyama has an extensive FX trading track record on the buy side and sell side, most recently as Head of Trading at a multi-billion dollar quantitative fund manager. TT made the announcement at the start of the FIA International Derivatives Expo (IDX) in London.
/jlne.ws/3PfTplo
New Options Record for Bullish S&P 500 Bets
Eric Wallerstein - The Wall Street Journal
June 16 - Traders don't want to miss out on the stock-market rally. Buying of S&P 500 call options hit a record 1.79 million contracts on Thursday, Cboe data show. The options give the right to buy shares at a certain price and date, and often reflect bullish sentiment. Options tied to shares of Tesla, Nvidia and small-cap stocks have also been in high demand.
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| | | | | | Exchanges | | | Deribit Trading Capacity Added To Exegy Metro Trading Platform - World's Largest Cryptocurrency Options Exchange Added To Leading Trading Platform
Mondovisione
Exegy, Inc., a leading provider of front-office trading solutions for the capital markets, announced today that it has added Deribit, the world's largest cryptocurrency options exchange, to its covered crypto derivatives markets for the Metro professional trading platform. The addition will allow crypto traders using Deribit to benefit from Metro's pricing, execution, and risk management capabilities, gaining a competitive advantage. The Deribit addition came in response to demand from both current clients and prospective Metro users, Exegy Chief Executive Officer, David Taylor, said. It is part of Exegy's larger goal to provide professional options trading functionality to the crypto options markets.
/jlne.ws/3CKa5tz
CME Group to Launch Lithium Carbonate Futures as Electric Vehicle Demand Surges
CME Group
CME Group, the world's leading derivatives marketplace, today announced that it will launch a Lithium Carbonate futures contract on July 17, 2023, pending all relevant regulatory reviews. Lithium Carbonate CIF CJK (Fastmarkets) will be financially-settled based on the battery-grade Lithium Carbonate assessment published by Fastmarkets. Lithium Carbonate futures are complementary to CME Group's Lithium Hydroxide CIF CJK (Fastmarkets) futures and will help establish a forward curve for Lithium Carbonate, offering market participants more transparency and choice for their different battery chemistry preferences.
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SGX Securities welcomes the listing of CSOP iEdge Southeast Asia+ TECH Index ETF
SGX
SGX Securities today welcomed the listing of CSOP iEdge Southeast Asia+ TECH Index ETF. Managed by CSOP Asset Management Pte. Ltd., the ETF offers investors access to the fast-growing digital and technology sectors in Southeast Asia and India. Developed by SGX Index Edge as part of its suite of thematic index solutions, the iEdge Southeast Asia+ TECH Index aims to track the performance of the largest 30 technology companies based in India, Indonesia, Malaysia, Singapore, Thailand and Vietnam. Constituents in this index include companies in technology-related sectors such as Information Technology, Software and Consulting, Car Manufacturing, Electronic Components and Manufacturing, and Retail and Media Services.
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NSE's power move puts BSE on alert
Ram Sahgal - Livemint
MUMBAI: Asia's oldest exchange, BSE, has sought market feedback on strategies to maintain its recent success in attracting significant trading volumes to its derivatives segment, as it faces a potential disruption from its larger rival, the National Stock Exchange. According to people familiar with the matter, one proposal under consideration is to reschedule the expiration of Sensex contracts to Monday.
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| | | | | | Regulation & Enforcement | | | As SEBI cautions, futures and options trading is not for the faint-hearted; SEBI has rightly directed all brokerage firms to display 'risk disclosures' on their trading portals for F&O
S Kalyanasundaram - The Federal
Mahadevan, a middle-aged professional, recently started investing in the stock market through the cash segment (wherein he can buy shares and hold them for life, vis à vis the futures segment, where he would need to settle the contract by a certain date). Over the past three-four months, Mahadevan's investments have given him good returns. As he has already invested his funds, he consults his friends on how to increase his exposure. Some of them suggested he enter futures and options (F&O) in the derivatives market, where he can buy large quantities of stocks with some margin money or premium payment, as there is no need to pay the entire contract amount upfront. The suggestion sounded good to him.
/jlne.ws/3NF0ISv
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| | | | John Lothian News (JLN) is the news division of John J. Lothian & Company, Inc. (JJLCO). The online media and financial services firm is staffed by derivatives industry, journalism and technology professionals. | | | | | | | John Lothian News Editorial Staff: | | | John Lothian
Publisher | | | Sarah Rudolph
Editor-in-Chief
| | | Jeff Bergstrom
Editor
| | | Asma Awass
Intern |
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