| November 04, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Pro Traders and Algos Have Overrun the Fast-Twitch Option Market
Lu Wang - Bloomberg
While it might look like a reprise of meme-era excess, the 2022 boom in very-short-lived index options is more than a retail phenomenon.
So say JPMorgan Chase & Co. strategists including Peng Cheng, whose team studied public trading data and found that small-fry investors can't be responsible for the explosion of S&P 500 contracts that mature within 24 hours, a category known as zero day to expiry, or 0DTE.
/jlne.ws/3zKPLaA
Dow's 600-point gain evaporates as investors assess jobs report
Christine Idzelis and Joseph Adinolfi - MarketWatch
U.S. stocks turned lower Friday afternoon, giving up sharp gains seen earlier in the session, as investors weigh the jobs report for October. All three major benchmarks are heading for weekly losses, with the Nasdaq Composite leading the way lower.
/jlne.ws/3FP1zwf
Market Volatility Among Bank of England's Top Worries in Meeting
Liza Tetley, Simon Lee, and David Goodman - Bloomberg
The risk of market curve-balls has displaced Russia and Covid as the Bank of England's biggest worries, if the words used in the minutes of the central bank's latest decision are anything to go by.
The word "market" was among the most-used in the BOE's Monetary Policy Committee meeting minutes released on Thursday, detailing its decision to raise rates by 75 basis points, an analysis by Bloomberg shows.
/jlne.ws/3T2wLep
Investors pile into cash at fastest rate since COVID crisis-BofA
Reuters
Investors put money into cash at the fastest pace at the start of a quarter since the 2020 COVID crisis in the week to Wednesday, as heightened volatility and questions over the U.S. rate outlook triggered a safe-haven dash, BofA Global Research said on Friday.
Cash funds saw inflows of $62.1 billion in the latest week, reflecting investor demand for dollars, which in turn saw the 19th straight week of outflows from gold funds - the longest string of outflows since 2014, BofA said in its weekly "Flow Show" report, citing data from EPFR.
/jlne.ws/3zN85Qu
| | | | | | Exchanges | | | Cboe Plans to Launch Trading in Mini S&P 500 Index (XSP) Options during Global Trading Hours, Beginning December 11
Cboe
Enables customers to trade Mini S&P 500 Index (XSP) options nearly 24 hours, five days a week; Adds to Cboe's existing offering of SPX options and VIX options and futures during Global Trading Hours (GTH); Ability to harness the cash-settled, smaller-sized S&P 500 index options during GTH will help enable traders to adjust positions around the clock with even greater precision and flexibility.
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced plans to launch trading in Mini S&P 500 Index (XSP) options during global trading hours (GTH), which will make the product available to customers nearly 24 hours every business day on Cboe Options Exchange, beginning December 11, 2022.
/jlne.ws/3DJ7Gjg
Cboe Global Markets Reports Results for Third Quarter 2022
Cboe
Third Quarter Highlights; Diluted EPS for the Quarter of $1.41, Up 26 percent; Adjusted Diluted EPS for the Quarter of $1.74, Up 20 percent; Net Revenue for the Quarter of $442.4 million, Up 20 percent; Increases Organic Total Net Revenue Growth Target for 2022 to 14 to 16 percent, from 9 to 11 percent; Decreases 2022 Adjusted Operating Expense Guidance to $651 to $659 million, from $659 to $667 million.
Cboe Global Markets, Inc. (Cboe: CBOE) today reported financial results for the third quarter of 2022. "Cboe delivered record adjusted earnings in the third quarter of 2022, building on the strong results produced over the first half of the year. The robust trends were driven by our derivatives franchise, supported by sizable contributions from our data and access solutions and cash and spot markets during the quarter," said Edward T. Tilly, Cboe Global Markets Chairman and Chief Executive Officer.
/jlne.ws/3UrHBvy
Miami International Holdings Reports October 2022 Trading; Results; SPIKES Futures, MIAX Options and MIAX Pearl Equities Set Year-to-Date Volume Records
MIAX
Miami International Holdings, Inc. today reported October 2022 trading results for its U.S. exchange subsidiaries - MIAX , MIAX Pearl and MIAX Emerald (together, the MIAX Exchange Group), and Minneapolis Grain Exchange (MGEXâ¢).
/jlne.ws/3zKBsmq
| | | | | | Regulation & Enforcement | | | Trader Arrested in Ibiza Awaits FX Case That's Dividing Wall Street
Donal Griffin, Amelia Pollard and Nishant Kumar - Yahoo Finance
Over almost three decades in the City of London, the aggressive trading strategies of Glen Point Capital co-founder Neil Phillips made him few friends even as they burnished his reputation as a hard-charging trader.
Those sharp elbows have now drawn the attention of the US Department of Justice, which charged Phillips with market manipulation in September. The move sent shockwaves from the Spanish island of Ibiza -- where he was arrested on vacation and is now awaiting an extradition hearing -- all the way back to Wall Street.
/jlne.ws/3WtZega
CFTC to Hold an Open Commission Meeting November 10
CFTC
Commodity Futures Trading Commission Chairman Rostin Behnam today announced the Commission will hold an open meeting on Thursday, November 10 at 9:30 a.m. (EST).
The Commission will consider the following:
Notice of Proposed Rulemaking on Reporting and Information Requirements for Derivatives Clearing Organizations
Notice of Proposed Order and Request for Comment on an Application for a Capital Comparability Determination Submitted on behalf of Nonbank Swap Dealers subject to Regulation by the Mexican Comision Nacional Bancaria y de Valores
/jlne.ws/3U9w2ti
| | | | | | Moves | | | Bloomberg equity derivatives specialist joins Cboe Global Markets as head of European derivatives; Incoming head brings considerable experience to the role, having previously served at Bloomberg and Liquid Capital Group.
Wesley Bray - The Trade
Cboe Global Markets has named Iouri Saroukhanov as its new head of European derivatives. Saroukhanov joins Cboe Global Markets from Bloomberg, where he served as equity derivatives specialist over the last six months. Prior to Bloomberg, Saroukhanov spent nearly 16 years at Liquid Capital Group, most recently as senior trader on the Euro STOXX 50 derivatives desk.
/jlne.ws/3sWfFnU
| | | | | | Strategy | | | Traders are loading up on bets against the stock market â and this time, it's not a contrarian signal, says Citi
Jamie Chisholm - MarketWatch
Markets continue to absorb the reverberations from this week's Federal Reserve policy decision. The S&P 500 has given up a chunk of its latest rally after Chair Jerome Powell suggested it was likely borrowing costs would peak at a higher level than investors had previously thought.
The benchmark remains down 22.5% for the year. The Nasdaq 100, replete with former tech-darlings turned outcasts, is off 35.2%.
/jlne.ws/3FKJ5gk
| | | | | | Miscellaneous | | | Fear and loathing in the QT age
Tim Bond - Financial Times
"You are effing useless," was the informed verdict from management, as they myopically closed my hedge fund in the middle of 2021.
To be fair, the markets apparently held a similar opinion of my abilities. Anyone who had predicated their investments on rampant inflation and a dual bear market in bonds and equities was not looking too clever at that point.
/jlne.ws/3fAfNX7
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| | | Jeff Bergstrom
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