| October 19, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Options Signal Surge in Yen Volatility Amid Concerns of FX Intervention
Yumi Teso and Masaki Kondo - Bloomberg
Options traders are preparing for turbulent yen trading.
Fluctuations are likely to increase amid growing concerns the Japanese authorities will intervene to support the weakening currency. At the same time, the yen may come under upward pressure amid speculation of a potential tweak to the Bank of Japan's monetary policy and escalation of the Israel-Hamas conflict, said Tsutomu Soma, a bond and currency trader at Monex Inc.
/jlne.ws/46C4iUq
Japan to counter FX volatility with intervention, says official; High swings are damaging the economy, says finance ministry's Kanda
Mitsuru Obe - Nikkei
Japan's top currency official said on Thursday that the government is prepared to intervene in the currency market if it detects an excessive swing in exchange rates, in a fresh warning to investors trying to test the yen's downside.
/jlne.ws/404xtNB
False Report of Bitcoin ETF Had a Silver Lining You Can See in the Crypto Options Market
Omkar Godbole - Coindesk
Monday's false report that the U.S. Securities and Exchange Commission (SEC) had approved BlackRock's spot bitcoin (BTC) exchange-traded fund (ETF) saw the cryptocurrency spike 10% to $30,000 before quickly settling back to $28,000.
The rumor-led price swing was perhaps bad optics for the crypto industry, validating the SEC's persistent concerns about manipulation and surveillance shortcomings.
/jlne.ws/3SomhJV
Powell Says Fed 'Proceeding Carefully,' Leaves Door Open to Rate Hike
Craig Torres and Jonnelle Marte - Bloomberg
Federal Reserve Chair Jerome Powell suggested the US central bank is inclined to hold interest rates steady again at its next meeting while leaving open the possibility of a future hike if policymakers see further signs of resilient economic growth.
The comments effectively affirm market expectations for the Fed to skip a rate increase for a second straight meeting when officials gather on Oct. 31 and Nov. 1. The Fed chief also said a recent run-up in long-term Treasury yields, if they persist, could lessen the need for further hikes "at the margin," echoing his colleagues and underscoring the importance of tightening financial conditions to the rate outlook over the coming months.
/jlne.ws/45FzMYz
Are Leveraged ETFs Worth the Costs and Risk?
Derek Horstmeyer - WSJ
Leveraged ETFs, which aim to amplify returns through the use of futures and other derivatives, have been the go-to for investors looking to make an outsize bet on the direction of a particular index since they were launched 15 years ago.
But are these exchange-traded funds worth the relatively high costs, considering the volatility to which they are prone and the tracking error, or how much the price behavior of the investment diverges from the price behavior of its benchmark.
/jlne.ws/3EoNDqL
| | | | | | Exchanges | | | Eurex expands its crypto derivatives suite with Options on FTSE Bitcoin Index Futures; Launch of Options on FTSE Bitcoin Index Futures in USD and EUR, on 23 October 2023; Safe and trusted access to cryptocurrencies on a regulated market with Eurex
Eurex
Eurex was the first exchange in Europe to offer Bitcoin index futures in April 2023. After this successful implementation, Eurex now expands the trusted path to crypto with the launch of Options on FTSE Bitcoin Index Futures. This is another major milestone in Eurex's ambition to offer secure access to cryptocurrencies in a regulated market environment.
/jlne.ws/3rWI4gQ
Cboe Global Markets Announces 2023/2024 Options Institute Academic Research Grant Program with Sponsors S&P Dow Jones Indices and SpiderRock Advisors
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today announced S&P Dow Jones Indices (S&P DJI) and SpiderRock Advisors as grant sponsors of The Options Institute Research Grant Program for 2023/2024. The announcement was made at Cboe's global Risk Management Conference (RMC), currently taking place in Austin, Texas.
/jlne.ws/45Jtffb
LSE outage halts trading in hundreds of small-cap stocks
Nikou Asgari - Financial Times
The London Stock Exchange suffered an outage that curbed trading in hundreds of small-cap shares on Thursday, a further blow to a market that has suffered from a shortage of new listings and falling trading volumes this year.
The group said it was investigating "an incident" in which investors could only trade shares in the FTSE 100 and 250 indices and global depositary receipts, a certificate representing shares in overseas companies.
/jlne.ws/46TUZ1Q
| | | | | | Strategy | | | Vix Index
Cboe (Video)
In #Vol411, Scott Bauer @cboesib overviews how the $VIX Index is calculated and what it measures, how the power of the number 16 comes into play with regard to the expected daily move percentages, how much movement falls within one standard deviation and more.
/jlne.ws/492mf04
| | | | | | Miscellaneous | | | War and Bear Markets Go Hand in Hand. Here's Why.
Teresa Rivas - Barron's
Warâwhat is it good for? Usually not the stock market. So far, however, rising geopolitical tensions this year haven't been enough to derail investors' attention, although it creates one more speed bump on stocks' road higher.
/jlne.ws/46CaDze
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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
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| | | Jeff Bergstrom
Editor
| | | Asma Awass
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