| July 12, 2024 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | The CME Group recently announced several product modifications and rule violation penalties. Effective August 5, 2024, additional Treasury Invoice Swaps and Spreads will be available, and starting July 22, 2024, there will be amendments to the termination of trading for existing Crude Oil Weekly Option Contracts. Concurrently, the CME Group issued fines for various rule violations. TP ICAP Global Markets Americas, LLC was fined $3,000 for violating Rule 536.B.1 by submitting incorrect account numbers at order entry and Rule 536.C by improperly using Execution Operation Suspense Accounts between January 1, 2024, and March 31, 2024. Morgan Stanley & Co. LLC received a $1,000 fine for late reporting of block trades and incorrect execution times for trades executed in February and March 2024, violating CME Rule 526 and 526.F. Citigroup Global Markets Inc. was fined $1,000 for failing to maintain accurate registrations in the Exchange Fee System, violating Rule 576 during the same period. Lastly, Wedbush Securities Inc. was penalized $1,000 for incorrectly assigning Customer Type Indicator (CTI) Codes to trades in May 2024, violating Rule 536.D. BGC Brokers L.P. was fined $1,000 for failing to report block trades with accurate execution times for March 2024 Three-Month SOFR Call Options in January 2024, violating CME Rule 526 and Rule 526.F. ~JJL
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Lex Luthringshausen Full Interview; Lex Talks IV Rank, IV Percentile, and Straddles With JLN's Alex Teng
JohnLothianNews.com
In this Options Discovery interview, Lex Luthringshausen from Tradier sits down with Alex Teng to discuss implied volatility rank and implied volatility percentile and how to use them when trading options. He later breaks down the options straddle trading strategy and talks about his personal experiences as a tradier. Lex is also very prominent in the world of options education. You can find him at OptionsBrewTV by Tradier on YouTube, where he creates content, holds workshops, and gives free seminars for options traders at all levels.
Watch the video »
| | | | | | Lead Stories | | | Options Bulls Come Out to Play
Gunjan Banerji - The Wall Street Journal
Traders are rushing to bold, bullish bets that would pay out if stocks keep soaring.
More than 37 million calls changed hands yesterday, the highest level of the year and one of the busiest days on record, according to Cboe Global Markets data. These trades confer the right to buy shares at a specific price, by a stated date. They're often used to make directional bets on the stock market's next moves.
/jlne.ws/3WmLvKd
VIX declines after PPI inflation report
Christine Idzelis - MarketWatch
The U.S. stock market's volatility gauge was declining Friday, as investors weighed a reading on wholesale inflation from the producer-price index.
The Cboe Volatility Index, known by its ticker symbol VIX, was down 2.8% Friday morning to around 12.56, according to FactSet data, at last check. That's well below its long-run average of around 20.
/jlne.ws/3zFXrO6
'Big Short' investor Steve Eisman says shorting current market would be 'insanity'
Louis Goss - MarketWatch
'Big Short' investor Steve Eisman has said "there's no fundamental case to be massively short" in the current stock market and said it would be "insanity" to start shorting stocks like Nvidia. Eisman, who was played by Steve Carrell in the 2015 film 'The Big Short,' said in an interview with Bloomberg TV that he believes "the economy is fine" and that there's "no case to be massively short" on it.
/jlne.ws/3Lm7w5t
Hedge Fund Giants Poised for One of Best Years Amid Strong Start; Light Street, Whale Rock lead pack for returns through June; This year set to be 'a good vintage,' NS's Bastianpillai says
Nishant Kumar - Bloomberg
The biggest hedge funds are off to one of their best starts to a year, aided by stocks and quantitative investing, while those focused on macro trading are lagging behind their peers.
While tech-focused equity hedge funds Light Street Capital Management and Whale Rock Capital Management lead the pack, large multimanager funds such as Citadel, Schonfeld Strategic Advisors and Point72 Asset Management posted gains of up to 13.7%, according to people with knowledge of the matter, well ahead of the risk-free rate. A PivotalPath index tracking mutlistrategy funds was up almost 6% during the first half of the year, the second-best for the period in 15 years.
/jlne.ws/4f3cktZ
U.S. retail traders turn to Europe to trade election volatility
Eurex
Retail trading in Europe's listed derivatives stayed somewhat muted as investors have access to various leveraged products like CFDs and warrants. However, European markets are increasingly seeing volume growth from American retail investors. This year, a record number of people will go to the polls to choose their leaders, and three key elections in Europe have driven volatility in the first half of 2024, creating opportunities for U.S. retail and institutional traders.
/jlne.ws/3WlLhSr
| | | | | | Exchanges | | | CME Group and CF Benchmarks to Launch Two New Cryptocurrency Reference Rates and Real-Time Indices on July 29
CME Group
CME Group, the world's leading derivatives marketplace, and CF Benchmarks, the leading provider of cryptocurrency benchmark indices, today announced plans to launch two new cryptocurrency reference rates and real-time indices for XRP and Internet Computer (ICP), which will be calculated and published daily by CF Benchmarks, beginning July 29.
These reference rates and indices are not tradable futures products.
/jlne.ws/4bAUcER
Miami International Holdings Reports Trading Results for June 2024; YTD Volumes Reach Record Levels on Multiple Options and Equities Exchanges
MIAX Press Release
Miami International Holdings, Inc. (MIH), a technology-driven leader in building and operating regulated financial markets across multiple asset classes and geographies, today reported June 2024 trading results for its U.S. exchange subsidiaries - MIAX, MIAX Pearl and MIAX Emerald (together, the MIAX Exchange Group), and Minneapolis Grain Exchange (MGEX).
/jlne.ws/3Wj0THm
| | | | | | Regulation & Enforcement | | | SEC Ends Probe Into Paxos Over Binance USD Token; Crypto firm said it received a formal investigation termination notice from the SEC this week
Mengqi Sun - The Wall Street Journal
The Securities and Exchange Commission has ended its investigation into Paxos Trust in relation to Binance USD, a digital asset that Paxos issues and lists, the cryptocurrency platform said Thursday.
Paxos said it received a formal termination notice on Tuesday from the SEC, saying it won't recommend taking an enforcement action against the firm over BUSD, a Binance-branded stablecoin pegged to the dollar on a one-to-one ratio.
/jlne.ws/3WlatJV
| | | | | | Strategy | | | How to Master Diagonal Spreads Today
tastytrade (Video)
Nick Battista and Mikey Butler discuss key strategies and market insights. They invite viewers to interact live on YouTube, encompassing strategies from directional trades to trade management. While reviewing current market movements, they highlight significant moves like the Russell's 5% surge and clarify how they approach setups like diagonal spreads and iron condors in stocks like Tesla and Nvidia. They also discuss recent results in various trades and the nuances of trading calendar spreads. The lively session emphasizes interactive learning and timely trade reviews.
/jlne.ws/3Y0jrNW
Implied Vol
Cboe (Video)
In #Vol411, Scott Bauer gives updates on the #VIX futures curve, #SPX closing above 5,600 for the first time, active index options and more.
/jlne.ws/4bDOkL7
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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
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