 | | | | | | | | November 07, 2024 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Options Trading Is More Popular Than Ever Despite the Risks
The Wall Street Journal (Video)
Traders are buying and selling stock options at a record pace. WSJ explains how call and put contracts work, and why they carry hidden risks for amateur investors.
/jlne.ws/48Jxjzw
VIX declines ahead of Fed decision, extending post-election slide
Christine Idzelis - MarketWatch
The U.S. stock market's so-called fear gauge continued to subside on Thursday, as investors await the outcome of the Federal Reserve's two-day policy meeting.
The Cboe Volatility Index, which trades under the ticker VIX, was down around 4% Thursday morning at 15.58, according to FactSet data, at last check. The measure had fallen more than 20% on Wednesday as investors digested the results of the U.S. Election.
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You Want Volatility? Here's Some Volatility; On this episode of Trillions, we introduce you to the "ghost pepper" of Bitcoin-tied exchange-traded funds.
Joel Weber and Eric Balchunas - Bloomberg
One of the year's hottest investments? Bitcoin, which has surged on exchange-traded fund adoption as well as the return of the "Trump trade." One way to go especially big on that bet is two new leveraged ETFs: MSTX and MSTU, which are 2X MicroStrategy-a company that's already a highly exposed Bitcoin proxy. Both ETFs effectively give investors a 4X exposure to Bitcoin. If that sounds volatile, it is: MSTX is the most volatile ETF in the US. Consider this space the "ghost pepper" of hot sauces.
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***** If someone hands you a ghost pepper, let them try it first and second.~JJL
Wall Street Quants Set to Buy $50 Billion in Stocks as Volatility Falls; Nomura expects buying by volatility funds to fuel rally; Funds set to gear up as stocks jump in election aftermath
Denitsa Tsekova and Natalia Kniazhevich - Bloomberg
The stock-market surge unleashed by Donald Trump's presidential victory is triggering buy signals for rules-based investment funds, adding fuel to the rally.
In the run-up to Tuesday's election, Wall Street had been positioning for the risk of a rocky spell after the vote. Instead, Trump's clear win drove the VIX Index, a measure of volatility known as the "fear gauge," to its second biggest one-day drop since 2021 as the S&P 500 Index jumped 2.5%. The moves forced systematically inclined funds to rebalance by plowing into stocks, creating a technically driven feedback loop that's adding to the other forces behind the advance.
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Record iShares Bitcoin ETF Volume Adds to Crypto's Historic Run; Trump's return to power is causing upheaval in digital assets; Bitcoin hit a new peak Wednesday in a wave of 'Trump trades'
Sidhartha Shukla - Bloomberg
President-elect Donald Trump's pledge to put the US at the center of the digital-asset industry is reshaping the crypto market. His march to the White House has lifted Bitcoin to a record high, opened up the widest performance gap to gold since 2022 and sparked unprecedented trading volumes at the world's largest fund for the token. The digital asset consolidated near $74,800 as of 7:30 a.m. Thursday in London after hitting an all-time peak of $76,475 a day earlier. The charts below capture some of the landmark crypto changes triggered by Trump's US election victory.
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Invesco launches ETFs focusing on AI, cyber security and defence; Manager is using Kensho benchmarks that use natural language processing to build underlying thematic indices
Alf Wilkinson, Ignites Europe - Financial Times
Invesco has bolstered its range of thematic exchange traded funds with the launch of strategies focused on the trends of artificial intelligence, cyber security and defence. The Invesco Artificial Intelligence Enablers, Cybersecurity and Defence Innovation Ucits ETFs follow benchmarks constructed by Kensho, a division of S&P Global Indices with expertise in the application of AI and other technologies. To build the three global indices, Kensho uses natural language processing as an initial screen to identify companies with potential exposure to key concepts associated with each theme. Its analysts further assess each of the companies identified and assign theme exposures accordingly.
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| | | | | | Exchanges | | | CME Group Announces Employment Agreement Extension for Chairman and Chief Executive Officer Terry Duffy
CME Group
CME Group, the world's leading derivatives marketplace, today announced that its Board will extend Chairman and Chief Executive Officer Terry Duffy's contract through December 31, 2026.
The company also announced Lynne Fitzpatrick will take on the expanded role of President and Chief Financial Officer. Additionally, its Chief Operating Officer Julie Holzrichter has decided to step down from her role to begin serving as an advisor to the company. Suzanne Sprague will succeed Holzrichter as Chief Operating Officer and Global Head of Clearing.
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Miami International Holdings Reports Trading Results for October 2024; Multiple Options & Equities Exchanges Report Record Volumes; MIAX Sapphire Reaches 1.7% Market Share in October 2024
MIAX
Miami International Holdings, Inc. (MIH), a technology-driven leader in building and operating regulated financial markets across multiple asset classes, today reported October 2024 trading results for its U.S. exchange subsidiaries - MIAX, MIAX Pearl, MIAX Emerald and MIAX Sapphire (collectively, the MIAX Exchange Group), and MIAX Futures.
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Cboe Unlocks Global Market Access with Powerful New VIX Options
Benzinga via MSN (Video)
Cboe Global Markets, Inc. CBOE is taking the world of options trading by storm. Not only did they recently launch options on Cboe Volatility Index Futures (VX Options), a new solution that offers more choices for expressing directional views and managing equity market volatility exposure, they also just announced at the HOOD Summit in Miami, FL on Oct. 17, that Robinhood customers would be able to trade index options.
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Amendments to the Rules of the Bourse de Montreal to Define Riskless Transactions on Options
TMX
On April 22, 2024, the Rules and Policies Committee of Bourse de Montréal Inc. (the "Bourse") approved amendments to the Rules of the Bourse De Montréal to define Riskless Transactions on Options. These amendments were self-certified in accordance with the self-certification process as established in the Derivatives Act (CQLR, Chapter I-14.01).
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ADM Investor Services Clients to Gain Access to Abaxx Commodity Futures Exchange and Clearinghouse
ADM Investor Services
Abaxx Technologies Inc. (CBOE CA:ABXX) ("Abaxx" or the "Company"), a financial software and market infrastructure company, majority shareholder of Abaxx Singapore Pte. Ltd., the owner of Abaxx Commodity Exchange and Clearinghouse (individually, "Abaxx Exchange" and "Abaxx Clearing"), and producer of the SmarterMarkets Podcast, today announced that the membership of ADM Investor Services Singapore Pte. Limited ("ADMIS Singapore") with Abaxx Exchange and Abaxx Clearing will be in effect on November 11, 2024. Beginning on November 11, 2024, following the membership announcement on September 18, 2024, ADMIS' clients will have access to Abaxx Exchange's suite of centrally-cleared, physically-deliverable liquified natural gas (LNG) and carbon futures contracts, enabling ADMIS' clients to be among the first market participants to benefit from Abaxx Exchange's price discovery and enhanced risk management tools for energy transition-related commodities.
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| | | | | | Regulation & Enforcement | | | Hobs and Hobbes: Wharton FinTech Lecture
Commissioner Hester M. Peirce - SEC
A well-functioning government creates an environment within which people feel secure enough to invest in long-term creative endeavors. The seventeenth-century philosopher Thomas Hobbes, in a frequently quoted passage, described a government-free world as one in which: there is no place for Industry; because the fruit thereof is uncertain; and consequently no Culture of the Earth; no Navigation, nor use of the commodities that may be imported by Sea; no commodious Building; no Instruments of moving, and removing such things as require much force; no Knowledge of the face of the Earth; no account of Time; no Arts; no Letters; no Society; and which is worst of all, continual fear, and danger of violent death; And the life of man, solitary, poor, nasty, brutish, and short.
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| | | | | | Strategy | | | Wall Street's most famous floor trader recounts election euphoria at the NYSE and explains how to trade an incredibly bullish fourth quarter
Laila Maidan - Business Insider
For Peter Tuchman, a senior floor trader who's spent over four decades at the New York Stock Exchange, the excitement the day after the elections was euphoric.
"Look, the bottom line is, on the floor, a majority of them are big Trumpers," said Tuchman, whose expressive appearances in wire photos have made him a trading-floor icon. "They were super excited about the results for the market," he added.
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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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Editor-in-Chief
| | | Jeff Bergstrom
Editor
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