 | | | | | | | | December 09, 2024 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
|
| | | | Observations & Insight | | | 
CME Group Henry Hub Natural Gas options on-screen trading averaged a record 140K/day this November. CME Direct is the top execution platform for Energy options traders due to advanced trading grids, analytical tools and access to unparalleled liquidity. Request a demo. | | | | | | Lead Stories | | | Options Giant Optiver Bets Japan's Market Is About to Boom; Firm wants to expand market making on single-stock options; Japan's listed derivatives have been lagging global peers
Yasutaka Tamura - Bloomberg
Optiver is expanding its derivatives empire in Japan, where it aims to boost a single-stock options market that has so far been virtually non-existent.
The speed trader, which has been dealing index contracts in the nation since 2008, in September started providing liquidity on options of 12 Japanese companies and exchange-traded funds. The Dutch firm aims to grow that number to 30 by June, according to its head of international sales in Japan.
/jlne.ws/4grAMW4
Levered China ETF Bullish Bets Net $138 Million Paper Gain; Unusually large call buying seen last week in YINN and CHAU; Chinese stocks soar after leaders signal further stimulus
David Marino - Bloomberg
Traders who scooped up millions of shares worth of bullish options over the past week in tiny, levered exchange-traded funds tracking Chinese indexes are up more than $130 million on paper as shares surged after top leaders in Beijing signaled stronger economic support next year.
The options buying was centered on two ETFs - Direxion Daily FTSE China Bull 3x Shares (ticker YINN) and Direxion Daily CSI 300 China A Shares Bull 2x Shares (ticker CHAU). Their combined market capitalization of around $2.5 billion lags larger funds like iShares China Large Cap (ticker FXI), which has almost $8 billion.
/jlne.ws/3Dakken
This Fund Manager Raised Billions in a Bet on MicroStrategy. Can He Keep It Going? Matthew Tuttle was a bit player. Now he runs a red hot fund-but there are signs the T-Rex 2X Long MSTR Daily Target ETF isn't ready for prime time.
Jack Pitcher and Gregory Zuckerman - The Wall Street Journal
Three months ago, Matthew Tuttle was a Wall Street bit player, running a small investing firm from his Connecticut home. Now he's managing billions on behalf of everyday investors betting on bitcoin in what may be the market's riskiest territory. Some in finance warn that just a few sharp down days could cause investors in his exchange-traded fund, known as the T-Rex 2X Long MSTR Daily Target ETF, ticker symbol MSTU, to face serious troubles.
/jlne.ws/4iq3jgq
Dollar Optimism Is Spreading From Hedge Funds to Asset Managers
Masaki Kondo and Ruth Carson - Bloomberg
A resilient US economy and deepening geopolitical tensions around the world are making asset managers rethink their expectations for a weaker dollar. Investors such as pension funds, insurance firms and mutual funds halved their net dollar short positions to $2.05 billion as of Dec. 3 from a week earlier, the least since April 2017, according to Commodity Futures Trading Commission data compiled by Bloomberg. Hedge funds boosted their bullish bets by 9.3%, having held a favorable view on the US currency since October, the data show.
/jlne.ws/3OM9AFx
UBS CEO Warns Markets Risk Being Rattled by Tariffs, Politics
Jeff Black and Joumanna Bercetche - Bloomberg
The incoming US administration's potential move to raise tariffs on trading partners could combine with conflicts around the globe to increase risk in financial markets next year, according to the chief executive of UBS Group AG. "The acceleration of geopolitical events coupled with escalation on the macroeconomic fronts - tariffs, protectionism - it's definitely something that has to be watched," Sergio Ermotti said in a Bloomberg Television interview on the sidelines of Abu Dhabi Finance Week on Monday. "It's still very uncertain, we're going to see a lot of volatility in markets."
/jlne.ws/4faxrcE
Bank of England will be vigilant towards greater risk-taking, Ramsden says
Reuters
The Bank of England will be vigilant over the possibility that investors will take greater risks after a year of relative stability in markets, Deputy Governor Dave Ramsden said on Monday.
Ramsden, who is head of markets at the BoE and in charge of its balance sheet, said there had been no major bank failures or bouts of market dysfunction in 2024, even though political events had stoked volatility.
/jlne.ws/3BuaRhl
| | | | | | Exchanges | | | Cboe Begins Publishing VIXTLT Index
MarketsMedia
Cboe Global Markets, the world's leading derivatives and securities exchange network, announced it has begun publishing intraday values for the new Cboe 20+ Year Treasury Bond ETF Volatility Basis Point Index ("VIXTLT Index"). Leveraging Cboe's proprietary VIXÃ Index methodology, the VIXTLT Index provides market participants with the ability to track future (30-day) expected volatility in the U.S. Treasury market in real-time.
/jlne.ws/4gsgjAo
Virtu, StanChart Join New UK Crypto Derivatives Trading Platform; GFO-X now expects to launch in first quarter of 2025; New venue for trading of Bitcoin index futures and options
Anna Irrera - Bloomberg
Standard Chartered Plc and Virtu Financial Inc. are among large financial companies poised to join a new London-based crypto derivatives venue, as a market rally boosts the appeal of digital currencies. Trading platform Global Futures and Options Ltd., known as GFO-X, said on Monday that it had also signed up ABN Amro Clearing and market maker IMC, and expects to launch in the first quarter of next year. GFO-X is backed by M&G Investments, the asset management arm of pensions giant M&G Plc.
/jlne.ws/4g6J4mc
GFO-X Announces ABN AMRO Clearing, IMC, Standard Chartered Bank and Virtu Financial as Strategic Partners Ahead of Launch in Q1 2025
Global Newswire
GFO-X announces ABN AMRO Clearing, IMC, Standard Chartered Bank and Virtu Financial as strategic partners ahead of launch in Q1 2025. GFO-X is the UK's first regulated and centrally cleared trading venue dedicated to digital asset derivatives. GFO-X has been working closely with these partners to deliver the requirements necessary to grow the institutional digital asset index futures and options market. GFO-X provides a cutting-edge trading platform built for institutions, delivering investors a secure and efficient trading environment to seamlessly manage digital asset exposure.
/jlne.ws/3OPnZRr
Micro E-mini Equity Index Futures Surpass 3 Billion Contracts Traded
CME Group
CME Group, the world's leading derivatives marketplace, today announced that as of November 29, more than 3 billion Micro E-mini Equity Index futures traded across all four indices.
"With over three billion of these contracts traded in less than five years, our Micro E-mini Equity Index futures continue to establish themselves among the most actively traded and deeply liquid index products," said Tim McCourt, Global Head of Equities, FX and Alternative Products at CME Group. "As investors continue to navigate ongoing market uncertainty, index choice is as important as ever. Our breadth of products across every major U.S. index allow clients of all sizes to more nimbly scale index exposure up or down."
/jlne.ws/4ilBpCh
| | | | | | Strategy | | | Wall Street isn't worried about a stock-market crash. That's why you should be; Stock traders have become even more bullish and complacent - and that's a bearish sign
Mark Hulbert - MarketWatch
Yet another black cloud on the stock market's horizon is the new all-time high for the CBOE's SKEW Index. Most market commentators are putting a different spin on this index's new high. They suggest that traders now believe a Black Swan event, such as a crash, has become more likely. But if that were so, it would be a positive development to contrarian investors, indicating that Wall Street is not as irrationally exuberant as other sentiment indices are suggesting. The SKEW's new high actually means just the opposite. It means that the great majority of traders have become even more bullish than they were before. And that's bearish from a contrarian point of view.
/jlne.ws/4faMWl4
The last major Wall Street S&P 500 forecast has arrived. Here's what Citi expects.; Valuations a worry - 'history says to be wary of this starting point,' says Wall Street bank
Barbara Kollmeyer - MarketWatch
Investors can expect more gains for the U.S. stock market in 2025, but should brace for more volatility given already lofty valuations for Wall Street.
That's according to a team of strategists led by Citigroup's Scott Chronert, which projected a 6,500 base case for the S&P 500 next year, with a bull case of 6,900 and a bear case of 5,100. Their base case put Citi in the median of cautious forecasts across Wall Street ranging from 6,400 to 7,000.
/jlne.ws/3D5j4cq
Wall Street has a new high bar for the S&P 500 in 2025. Here's what's driving that.; Oppenheimer sets top target at 7,100 for the index
Barbara Kollmeyer - MarketWatch
The most bullish forecast on Wall Street has just landed, and it's predicting the S&P 500 will reach 7,100 in 2025, thanks in part to a resilient economy.
The author of that call, Oppenheimer Asset Management's chief investment strategist, John Stoltzfus, has bested Deutsche Bank's current top forecast of 7,000, which is also held by Yardeni Research. UBS marks the bottom with a forecast of 6,400.
/jlne.ws/3VTCjMP
| | | | |  | | | | JLN Options is sponsored by: | | | | | |  |  |  |  |  | | | | | |  |  | | |
|
|
| | | |
| | | | 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
| | |
|
|
| |
Disclaimer: All John Lothian Newsletters, JohnLothianNews.com, MarketsWiki.com and MarketsReformWiki.com are products of John Lothian News, a division of John J. Lothian & Company, Inc. The opinions expressed in all John J. Lothian & Company, Inc. publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers. Futures and options trading involve risk. Past results are no indication of future performance. Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any website or newsletter content.
© 2023 John J. Lothian & Company, Inc. All Rights Reserved. |
|
|
