| September 01, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | Cboe Global Markets is looking for a client engagement manager in New York for a hybrid job. This is what Henry Schwartz, Cboe's vice president, global head of client engagement, data & access solutions had to say on LinkedIn about the position:
"We have a great opening for an individual with options industry experience! Regular interaction with top tier firms and end-users including derivative sales, trading, research teams who value the cutting-edge trading tools and data Cboe Data and Access Solutions creates. Become a part of the most talented options business and technology specialists in the business."
You can apply for the Cboe job here.
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MWE SHORT: Tom Sosnoff - Change the Game
JohnLothianNews.com
In this video from MarketsWiki Education's World of Opportunity event in Chicago, Tom Sosnoff, co-CEO of tastytrade, maps out the importance of decision making. Trading is one of the few industries where you have the ability to make an unlimited number of decisions with both emotional and monetary outcomes.
Watch the video »
| | | | | | Lead Stories | | | Premarket stocks: The VIX can't save you
Nicole Goodkind - CNN
Markets are hard to predict right now, and that's raising a question for some on Wall Street: Does a common measure of volatility actually work the way it should?
Traders don't have a crystal ball to measure the level of risk when they make investment decisions. Instead they depend on the VIX, or the Chicago Board Options Exchange Volatility Index.
Known as Wall Street's "fear gauge," the index is supposed to reflect the market's estimate of future volatility â or how fast prices will change â 30 days out.
/jlne.ws/3B465UY
Stock Market's Worst Month Gets Even More Dicey With Hawkish Fed
Jess Menton - Bloomberg
Wall Street is on edge as it heads into a dangerous final few months of 2022 with the Federal Reserve set to keep raising interest rates and the calendar flipping to September, historically the weakest month of the year for stocks.
Investors who were thinking this year's rise in inflation would be short-lived are growing worried about how long the pressures will persist. That spurred a fast rise in the 10-year note yield in August, which rattled growth shares, upending the stock market's $7 trillion early summer rebound.
/jlne.ws/3AGXy8X
Japan warns against volatility as yen slumps to 24-year low
Tetsushi Kajimoto and Kentaro Sugiyama - Reuters
The yen's fall to a 24-year low against the dollar on Thursday prompted policymakers to warn they were watching currency moves with a "high sense of urgency", using strong language to hint at a possibility of eventual market intervention.
The currency fell to 139.69 per dollar , a level not seen since 1998, as investors braced for further aggressive interest rate hikes by the U.S. Federal Reserve that would make the yen relatively less attractive.
/jlne.ws/3TDdCkX
Bed Bath & Beyond Missed the Memes
Matt Levine - Bloomberg
My basic view is that if you are a company that has become a meme stock, you should do an at-the-money offering to sell as much stock as you can to retail investors at irrational prices. There are, however, reasonable objections to that view.
/jlne.ws/3Q72TMD
| | | | | | Exchanges | | | Cboe FX reports $854 billion in August volumes, up 34% YoY
FinanceFeeds
Cboe FX disclosed a total trading volume of $854 billion, up 6.6 percent on a month-over-month basis from $802 billion in July?. In addition, it was higher by 34 percent year-over-year when weighed against $636 billion in August 2021.
The exchange's institutional FX trading venue saw its average daily trading volumes amounting to $37.1 billion in August 2022, down -2.3 percent month-over-month from $38.1 billion the previous month.
/jlne.ws/3QofHhT
MIAX Options, Pearl Options and Emerald Options Exchanges - September 1, 2022 Fee Changes
MIAX
Fee Change Alert: The MIAX Options, MIAX Pearl Options and MIAX Emerald Options Exchanges Fee Schedules will be amended on September 1, 2022, pending filing with the SEC.
/bit.ly/3Q7lND3
Trading Overview in August 2022
JPX
Japan Exchange Group released Trading Overview in August 2022. Cash Equity Market: In August 2022, the daily average trading value for the Prime Market (domestic common stocks) was JPY 2.9820 trillion. The daily average trading value for the ETF market was JPY245.9 billion. Derivatives Market: In August 2022, total derivatives trading volume was 26,206,340 contracts. In August 2022, total derivatives trading value reached JPY 194 trillion. In August 2022, trading volume for the night session and the ratio of the night session were 10,122,553 contracts and 38.6%. In August 2022, total trading volume for Nikkei225 Weekly Options was 100,051 contracts, the highest record.
/bit.ly/3R9Z0I7
Equity Options: Changes in Minimum Block Trade Sizes for maturities longer than 2 years
Eurex
The Management Board of Eurex Deutschland took the decision to reduce TES (Trade Entry Service)/Eurex EnLight Minimum Block Trade Sizes (MBTS) for selected equity options with maturities longer than 2 years, effective 5 September 2022.
/bit.ly/3R9S79x
| | | | | | Regulation & Enforcement | | | UK hedge fund founder charged in New York with market manipulation, fraud
Jonathan Stempel - Reuters
The co-founder and chief investment officer of a prominent London hedge fund was charged on Thursday with fraudulently manipulating the U.S. dollar-South African rand exchange rate in order to trigger a $20 million payment, U.S. prosecutors said.
Neil Phillips, 52, of Glen Point Capital LLP, was indicted in Manhattan on four criminal charges including wire fraud, commodities fraud and two conspiracy counts.
/jlne.ws/3cF6WSB
| | | | | | Strategy | | | The Fed Is Raising Interest Rates. Here Are 2 Investing Mantras to Keep in Mind.
Steve Sosnick - Barron's
There's a lot to be said for time-tested market adages. They wouldn't stick around if they weren't useful. "Don't short a dull tape," "bulls make money, bears make money, pigs get slaughtered," and "dead cats don't bounce" all have their relevance, but "don't fight the Fed" is almost certainly the most useful of all.
The phrase "don't fight the Fed" is widely credited to Martin Zweig, a long-time fixture in Barron's. The rationale is deceptively intuitive. If the Federal Reserve is cutting interest rates or is generally accommodative, then the ensuing liquidity should provide a positive backdrop for risk assets like stocks. If the Fed is raising rates or constraining liquidity, that activity tends to be a headwind for equities and other assets.
/jlne.ws/3B3kReD
The bear market in stocks has a long way to go, this money manager warns. Here are the 2 strategic moves he's making.
Barbara Kollmeyer - MarketWatch
Closing the door on a brutal August, investors are stepping into the worst calendar month of the year, and maybe pining for October, which, it should be noted, has had its share of historical pitfalls.
As if everyone isn't tense enough, bubble expert Jeremy Grantham is warning that we're in the last throes of a superbubble that's about to burst. (In fairness, he's been crash calling for roughly a decade.)
/jlne.ws/3RLFH7Z
The Diversification Power of Alternatives ETFs
Cinthia Murphy - Nasdaq
This has been a great year for portfolio diversifiers that in ETF land populate what's known as the alternatives category.
Highly correlated markets have made it challenging to find much of a diversification punch among traditional assets, but alternatives ETFs are reminding us that diversification is out there if you are willing to look into some of the more-complex, and often actively managed, parts of the ETF ecosystem.
Alternatives ETFs have seen their value proposition tested this year, and many have more than confirmed that value prop with results that are delivering on intended design.
/jlne.ws/3Qe4qAq
| | | | | | Miscellaneous | | | Chinese Stock's 13,000% Surge Creates Another US IPO Mystery (ATXG)
Matt Turner, Ishika Mookerjee and Kiuyan Wong - Bloomberg
A frenzied rally in the shares of a little-known Chinese garment manufacturer, which drew comparisons to the wild surges seen by AMTD Digital Inc. and Magic Empire Global Ltd., unraveled almost as quickly as it arrived.
Addentax Group Corp. tumbled as much as 89% in US trading Thursday, eating away nearly all the massive gains its shares saw on their trading debut a day earlier when they surged 13,000%. The stock's sudden decline sparked a $18 billion wipeout in market value. That came after its value had ballooned to more than $20 billion on Wednesday, which at the time made it bigger than about a third of S&P 500 Index members.
/jlne.ws/3KCpek0
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