| April 06, 2023 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | EDITOR'S NOTE: The JLN Options Newsletter will not be published tomorrow, April 7. We will be back on Monday, April 10. Have a great weekend!
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Nodal CEO Paul Cusenza explains how Nodal is growing as part of the Eurex family
JohnLothianNews.com
Paul Cusenza, Chairman and CEO of Nodal Exchange and Nodal Clear, was interviewed by John Lothian News at the FIA International Futures Conference in Boca Raton, FL., about Nodal's growth from a start-up in 2009 and the ways it operates as a clearing house and collaborator to introduce products. Cusenza discussed the interconnected markets of natural gas and electric power, and how geopolitical forces and the weather are shaping those markets, making Nodal Exchange's risk management role important.
Watch the video »
| | | | | | Lead Stories | | | Options Investors Face Challenges in a Volatile, but Flat, Stock Market
Simon Constable - The Wall Street Journal
The past six months or so have been rough for buyers of stock options. While the market has been volatile, it made no sustained move up or down, which is an especially tricky scenario for novice options buyers.
If they want to make a nice profit, options investors can't wait patiently while the market trades sideways. That's because options give the owner the right but not the obligation to buy or sell a securityâa stock or exchange-traded fundâat a predetermined price for a limited time. If the stock or the ETF fails to move sufficiently in the desired direction before the option contract ends, it expires worthless.
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Zero-day options and the shadow of the apocalypse
Faye Kilburn - Risk.net
The ancient Greeks saw a solar eclipse as an apocalyptic sign - a portent of doom. For other ancients, it was a positive omen that simply created more stars. Both views had their flaws.
Today, financial markets doomsayers are focused on another phenomenon - zero-days-to-expiry options, or 0DTEs - as the next harbinger of the apocalypse. And again, not everyone agrees.
/jlne.ws/3nVO47i
Options Insight: Oppenheimer's Rosin on VIX, Big Tech
Bloomberg (Video)
On this edition of "Options Insight," Alon Rosin, Oppenheimer's head of institutional equity derivatives, discusses the VIX, big tech, and small caps. He speaks on "Bloomberg Markets: The Close." (This interview aired on March 29, 2023.) (Source: Bloomberg)
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Shadow banks: The other financial firms worrying investors and regulators
Anna Cooban - CNN Business
The International Monetary Fund warned this week of "vulnerabilities" among so-called non-bank financial institutions, saying global financial stability could hinge on their resilience. The Bank of England called attention to the same issue last month.
And global investors surveyed by Bank of America in the middle of the recent banking crisis pointed to a group of US non-banks â rather than traditional lenders such as the newly defunct Silicon Valley Bank â as the most likely source of a credit crisis.
But what exactly are non-banks and how risky are they?
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Economist Who Called 2008 Crisis Says More Bank Collapses Are Coming
Jennifer Sor - Markets Insider
Despite waning volatility in recent weeks, banking sector woes aren't over, and more collapses could be coming, according to top economist Raghuram Rajan.
Rajan, who formerly served as the chief economist for the International Monetary Fund and was among the experts who predicted the 2008 financial crisis, pointed to trouble in regional banks last month stemming from the collapse of Silicon Valley Bank. The bank's failure sparked a steep sell-off in regional bank stocks, leading some commentators to warn of a 1980s-style banking crisis.
/jlne.ws/3zCZaR3
This Bond Market Signal Shows a Storm Is Coming for US Economy: Bianco
Zahra Tayeb - Markets Insider
The bond market is flashing a warning sign that the US economy is heading for a rough patch, says Wall Street analyst Jim Bianco.
The yield on the 10-year US Treasury note has fallen to its lowest level since last September - and that suggests rising expectations of an economic downturn, according to him. A slide in market rates such as bond yields typically reflects bets for interest-rate cuts - a scenario that would accompany a sharp slump in growth.
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| | | | | | Exchanges | | | Miami International Holdings Reports Trading Results for March 2023; Multiple Volume and Market Share Records Set on MIAX Options and Equities Exchanges
Miami International Holdings
Miami International Holdings, Inc. today reported March 2023 trading results for its U.S. exchange subsidiaries - MIAX, MIAX Pearl and MIAX Emerald (together, the MIAX Exchange Group), and Minneapolis Grain Exchange (MGEX). March 2023 Trading Volume Highlights; Total multi-listed monthly volume for the MIAX Exchange Group reached a record 161.3 million contracts, a 32.5% year-over-year (YoY) increase and representing a monthly market share of 16.74%, a 21.8% increase YoY.
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Cboe Global Markets Reports Trading Volume for March 2023
Cboe Global Markets
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today reported March monthly trading volume statistics across its global business lines and provided guidance for selected revenue per contract/net revenue capture metrics for the first quarter of 2023.
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Nodal Exchange sets new records and achieves second highest quarterly power trading ever in Q1 2023
Nodal Exchange
Nodal Exchange today announced strong performance in power, environmental, and natural gas trading in the first quarter of 2023. In power, Nodal posted its second highest quarter ever in Q1 2023 with 833 million MWh power futures volume traded, just shy of Q1 2022's record 850 million MWh. In the first quarter of 2023, Nodal saw three of its five highest volume months ever in power futures trading, including a record January.
/jlne.ws/3nHd69S
MGEX Reports Trading Results for March 2023; SPIKES Futures Sets New Open Interest Record
Minneapolis Grain Exchange
Minneapolis Grain Exchange (MGEX), a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), today reported March 2023 trading volume of 242,712 contracts, representing a 29.1% year-over-year (YoY) decrease and a 4.2% decrease from February 2023.
/jlne.ws/3ZG3r0E
TMX Group Consolidated Trading Statistics - March 2023
TMX Group
TMX group; Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange and Montréal Exchange. TMX Group Limited today announced March 2023 trading statistics for its marketplaces - Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange and Montréal Exchange.
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ASX Group Monthly Activity Report - March 2023
ASX
Listings and Capital Raisings
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More than half a million people became investors on the Moscow Exchange in March
MOEX
The number of individuals with brokerage accounts on the Moscow Exchange ( MOEX ) in March 2023 reached 24.5 million (+522.7 thousand people), they opened 41.4 million accounts (+983.2 thousand accounts) . In March 2023, 2.6 million people made transactions on the stock market.
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| | | | | | Regulation & Enforcement | | | Cboe's Perspective on Proposed Updates to Regulation NMS
Adam Inzirillo - Cboe
I hope you're doing well. You may recall, at the beginning of March I reached out to share that Cboe submitted into the Securities and Exchange Commission's (SEC) comment file for the Proposal on Regulation NMS: Minimum Pricing Increment, Access Fees and Transparency of Better Priced Orders, a re-introduction of the tick framework we proposed last year with refreshed data from fourth-quarter 2022. I'm following up to share that last week, Cboe submitted its full response to the SEC's market structure proposal. Our response addresses four key areas of the SEC's proposal, outlined below.
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| | | | | | Moves | | | RBC Capital Markets names new Continental Europe head of equity derivatives flow sales; Incoming head brings a wealth of experience to the firm, having previously served at Optiver, Deutsche Bank, SocGen and Exane.
Wesley Bray - The Trade
RBC Capital Markets has appointed Charles Liber as its new head of equity derivatives flow sales for Continental Europe, based in Paris.
Liber joins RBC Capital Markets after a non-compete period of one year.
/jlne.ws/3GiehDh
| | | | | | Strategy | | | You'll make the most money in the stock market during these specific hours
Mark Hulbert - MarketWatch
Sleep can make you wealthier. That's because of the stock market's historical tendency to make most of its daily move overnight, between the closing and opening bell.
To illustrate how this night-vs.-day pattern works, consider the U.S. stock market's performance on a recent Tuesday in March. Most of that day's gain came between the market close on Monday and the Tuesday open.
/jlne.ws/3zBTcjd
Bitcoin rally has been driven by bank crisis, and two more factors: strategist
Steve Goldstein - MarketWatch
It is of course an extremely volatile asset, but as this story was being drafted, bitcoin was up an incredible 69% (nice) this year. Gold â analog bitcoin, if you will â has gained 11%, while the S&P 500 has advanced by 7%.
There's a logical underpinning behind both bitcoin's, and gold's, appreciation: the trouble in the traditional banking system, which to date has seen the collapse of SVB Financial, Signature Bank and Silvergate Bank and a systemically important institution, Credit Suisse, being handed over to UBS. The 12% share-price fall in Western Alliance Bancorp on Wednesday, after the lender did not disclose deposit outflows, would seem to indicate the crisis has not fully ended.
/jlne.ws/3zCCC2P
Cboe Sets New Records
Cboe (Video)
Scott Bauer @cboesib covers big $VIX #options trades, Cboe's record-setting March and action in $TSLA, $T, $VZ & $TXN. #Vol411
/jlne.ws/3Mt20Qp
| | | | | | Events | | | Russell 2000 Covered Call - a strategy for finding yield in volatile times?
BrightTalk (Webinar)
- Finding yield in volatile markets. A Russell 2000 Covered Call strategy -
Join experts from Cboe Global Markets, Global X and FTSE Russell in conversation about:
- Analysing the Russell 2000 Index performance: small cap vs. larger cap indexes, and Q1 2023 update
- Benchmarks strategies: BuyWrite Index and a 50-Delta (50%) BuyWrite Index
- Use cases with options and ETFs
**Please note that this webinar is addressed exclusively to investors in the US and/or jurisdictions where Cboe's and Global X's products are approved for distribution. The Derivatives and ETFs presented are not sponsored, endorsed, issued, sold or promoted by FTSE Russell or LSEG. Nor do FTSE Russell or LSEG make any representation regarding the advisability of investing in any of the products. Cboe and Global X are not affiliated to FTSE Russell or LSEG.**
This webinar has been accepted for 1.0 hour of CE credit towards the CFP , CIMA , CIMC , CPWA or RMA certifications. To receive credit, attendees must submit accurate and complete information on the requested forms and attend the entirety of the webinar.
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| | | | | | Miscellaneous | | | Mohamed El-Erian, Citing Hamilton, Says the Fed Should Talk Less
Reshma Kapadia - Barron's
According to economist Mohamed El-Erian, the Federal Reserve has made policy mistakes by acting too late to tame inflation, and then doing too little. Now El-Erian, chief economic advisor at Allianz, the German financial-services giant, and chair of Gramercy Funds Management, worries that central bankers have been left with bad choices that raise the risk of financial and economic accidents.
/jlne.ws/3nTQl2R
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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
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Editor
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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.
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