| March 29, 2022 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Rare VIX Discount Spurred by Plunging Demand for Protection Against Stock Losses
Lu Wang - Bloomberg
As stocks rally back toward record highs, demand for protection against market losses is plummeting after traders spent much of this year paying up for hedges.
A spread that effectively measures the cost of buying stock insurance -- the gap between expected and real turbulence in the S&P 500 -- has now turned negative in a rare discount.
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Four years after 'Volmageddon', new volatility ETFs to hit market
Saqib Iqbal Ahmed - Reuters
Two new funds that let investors place bets on stock market gyrations are expected to launch this week, potentially filling the void left by the implosion of similar products four years ago.
The 1x Short VIX Futures ETF (SVIX) and 2x Long VIX Futures ETF (UVIX) have received regulatory approval to list and will start trading on Wednesday, said Stuart Barton, chief investment officer at Volatility Shares, the company releasing the ETFs.
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Meme-Stock Mania Returns With Big Swings and Flood of Retail Money
Bailey Lipschultz - Bloomberg
Wall Street and individual investors are once again dashing in and out of so-called meme stocks as the appetite for riskier assets revives and volatility grips the group.
A basket of 37 meme stocks tracked by Bloomberg has surged 45% off a March bottom, rallying in 9 of 11 sessions as millions of shares change hands. A flurry of trading activity in out-of-the-money call options -- a favored trading method among retail investors seeking to capitalize on rapid gains in an individual stock -- have helped fuel the latest swings.
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LME Nickel Trading Paralysis Deepens as Battered Market Barely Trades
Mark Burton - Bloomberg
Nickel trading volumes continue to collapse on the London Metal Exchange in the wake of an historic short squeeze, setting up a liquidity crisis in the market for one of the most crucial industrial commodities.
The LME halted nickel trading and canceled nearly $4 billion worth of transactions earlier this month after prices spiked by 250% in under two days, as it sought to protect its brokers from huge margin calls owed by Tsingshan Holding Group Co. and other short position holders. After a haphazard effort to restart trading, nickel has spent much of the past fortnight locked at the upper or lower limit of a new daily price cap designed to rein in the unprecedented volatility.
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JPMorgan's quant guru says an inverted yield curve and a hawkish Fed warrant caution from investors, but a recession is still unlikely
Matthew Fox - Business Insider
Investor concerns about yield curve inversions and Federal Reserve interest rate hikes are warranted, but that doesn't mean a recession in the US economy is likely, according to JPMorgan's quant guru Marko Kolanovic.
A yield curve inversion, in which short-term interest rates are higher than longer-term interest rates, has historically been a good leading indicator that the economy is on the verge of entering a recession. That's because an inversion typically indicates that financing conditions have tightened to an unsustainable level for companies to raise debt.
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Why's volatility index India VIX flashing far less fear than before?
Chiranjivi Chakraborty - MoneyControl
The dramatic spike in volatility seen a month ago as Russia's military advanced into Ukrainian territory appears to be subsiding significantly in recent sessions indicating investor confidence on the mend.
The India VIX index, a gauge of volatility in the stock market, nosedived more than 33 percent after hitting multi-year highs on February 24, the day Russia's President Vladimir Putin announced a "special military operation" in Ukrainian territory.
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| | | | | | Exchanges | | | Robinhood Moves Closer to Its Dream of 24/7 Markets
Avi Salzman - Barron's
Robinhood Markets hasn't been able to increase its customer base in recent quarters, so it's trying the next best thingâgiving existing customers even more time to trade. The investing app announced on Tuesday that it would allow customers to buy and sell shares from 7 a.m. until 8 p.m. Eastern time.
Today, Robinhood customers can trade from 9 a.m. until 6 p.m. The extra hours mean that they can now log on after work or other responsibilities, or check their phones early in the morning.
/jlne.ws/3JQ0jID
LME board to evaluate lessons from nickel halt, parent company says
Alun John and Selena Li - Reuters
The London Metal Exchange board will see what lessons can be learned from this month's chaotic nickel trading, the chief executive of its parent company Hong Kong Exchanges and Clearing (HKEX) said on Tuesday.
The LME suspended activity and cancelled nickel trades earlier this month due to volatility that saw prices double to more than $100,000 a tonne within hours. A spate of technical glitches after trading resumed left traders fuming.
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Record volumes for FTSE 100 Derivatives at Eurex marking one year anniversary
Eurex
2022 witnessed a sharp increase in trading activity for the FTSE 100 Derivatives at Eurex compared to last year (+254% vs. 2021).
Since the launch in March 2021, the traded value was EUR 7.4 billion for FTSE 100 Index Total Return Futures (TTUK) and EUR 3.6 billion for the regular FTSE 100 Index Futures (FTUK). The combined open interest is at present approx. EUR 5 billion notional.
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| | | | | | Regulation & Enforcement | | | Four women join CFTC in U.S. Senate vote hailed as historic
Pete Schroeder - Reuters
Four women will take seats on the Commodity Futures Trading Commission, returning the derivatives regulator to full strength, after a unanimous U.S. Senate vote hailed as historic by the chair of the Senate Agriculture Committee.
"This confirmation makes history because all four nominees are women, three of whom are women of color," Senator Debbie Stabenow, the chair, said in a statement.
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| | | | | | Moves | | | Cboe Global Markets Announces Two Senior Executive Promotions to Support Continued Growth and Global Expansion
Cboe names Tim Lipscomb new Chief Technology Officer
Cboe Europe CFO Stephanie Renner promoted to newly created role, SVP, International Finance
Cboe Global Markets
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced two senior executive promotions that will further accelerate the company's growth as it continues to advance on its global expansion strategy. These promotions include the appointments of Tim Lipscomb as Senior Vice President, Chief Technology Officer, and Stephanie Renner as Senior Vice President, International Finance.
/yhoo.it/3IQHRhz
CME executive joins Cboe Global Markets as director of EMEA sales; New director brings several years' experience in sales related roles to the firm, having served at CME Group, Morgan Stanley and UBS Global Asset Management.
Wesley Bray - The Trade
Market infrastructure provider Cboe Global Markets has appointed a new director of EMEA sales for its data and access solutions division. Nigel Jeyakumar takes on the role and will be based in London, leading Cboe's sales efforts in Europe, Middle East and Africa (EMEA) for the company's suite of market data, indices and analytics offerings. He will report to Bo Chung, senior vice president in global sales and index licensing.
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CME Group appoints new directors for its FX team and BrokerTec platform; New directors bring a wealth of experience to CME Group, having served at NatWest Markets, TFSEdge and Societe Generale Corporate and Investment Banking.
Wesley Bray - The Trade
CME Group has appointed a new executive director for its London-based FX team as well as a new director for its fixed income platform, BrokerTec. Chris Povey joined CME's FX team as executive director on 21 March, reporting directly to Paul Houston, global head of FX at CME Group. Povey's role consists of overseeing the development, management and growth of CME Group's listed FX options business.
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FTX Names Marcel Lötscher Head of Regulatory Strategy for Europe
FTX Europe
FTX Europe today announced the appointment per October 1st, 2022 of Dr. Dr. Marcel Lötscher, LL.M. MBA, to the newly created position, Head of Regulatory Strategy. Lötscher is being hired to continue FTX's global expansion into Europe and the Middle East, giving users in European Economic Area and the Middle East access to FTX's innovative products, including industry-leading derivatives, options and volatility products, tokenized stocks, and other services and products. He will be focused on working with European regulators, including the Swiss Financial Market Supervisor Authority (FINMA) and the Cyprus Securities and Exchange Commission (CySEC).
/jlne.ws/36vPGfG
| | | | | | Miscellaneous | | | Hedge Fund Launches Went Through the Roof Last Year â Here's Why
Jessica Hamlin - Institutional Investor
If it seemed as though a new hedge fund was popping up every day last year, you weren't imagining things. According to a Hedge Fund Research report released last week, 614 new funds hit the market in 2021, the highest number of launches since 2017, when a record 735 new hedge funds were rolled out.
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