| September 26, 2023 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Reddit User Risks And Loses $600,000 Inherited Home That Didn't Fully Belong To Him In High-Stakes Options Gamble: 'My Life's Over, Here's My Final Advice'
Yahoo Finance
The story of a Reddit user losing $619,035 in the stock market showcases the risky nature of high-risk financial trading and the devastating consequences it can bring.
The user's tragic story unfolded on the r/wallstreetbets subreddit, a community dedicated to high-stakes, high-reward investments that often are focused on options trading. In a post titled "My life's over, here's my final advice," the investor laid out the grim reality of their financial predicament along with a photo of their brokerage deficit account email.
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Wall Street Revises Rules to Speed Up Options Trading on New Ipos
Investing.com
Leading Wall Street exchanges have expedited investor access to options trading for newly listed companies, a development that took place quietly over the summer. The revision has shortened the post-IPO waiting period for options trading from four sessions to a mere two.
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Hedge Funds Cut Stock Leverage at Fastest Pace Since 2020 Crash; Wall Street prime brokers say clients ramped up short selling; Bears benefit as the most-shorted stocks led the market rout
Lu Wang and Denitsa Tsekova - Bloomberg
As the cross-asset selloff engulfed Wall Street last week, hedge funds ramped up their bets against stocks while one measure of their market positioning plunged the most since the March 2020 crash. From retail investors to rules-based systematic traders, appetite for equities is subsiding after a 20% rally this year that's fueled by euphoria over artificial intelligence.
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European Trading Firms Set to Expand Derivatives Trading in APAC
Press Release from Trading Technologies and Acuiti
European proprietary trading firms and hedge funds are set to expand trading across the Asia-Pacific (APAC) region as opportunities and volumes grow, a new study by Acuiti and Trading Technologies has found. European Attitudes to Trading in APAC, which was commissioned by Trading Technologies ahead of its inaugural TT Connect: Asia Insight event taking place tomorrow in London, was based on a survey of senior executives at 53 European based proprietary trading firms and hedge funds.
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Asia-Pacific holds untapped derivatives trading potential if local regulatory and counterparty challenges can be overcome; Key local challenges cited in the Trading Technologies and Acuiti report include finding the right local partners, understanding local rules and regulations and gaining access to regional markets via preferred clearing firms.
Wesley Bray - The Trade News
Derivatives volumes in Asia-Pacific (APAC) are growing at a considerable rate - contrasting declines in Europe and marginal growth in the US - presenting increased opportunities for European proprietary trading firms and hedge funds. A report by Acuiti, commissioned by Trading Technologies, found that trading in APAC holds significant potential for firms if challenges unique to markets within the region can be overcome.
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Egypt Buys Oil Hedge to Stave Off Volatility as Economy Squeezed
Abdel Latif Wahba and Tarek El-Tablawy - Bloomberg
Egypt hedged its oil supply amid efforts to revive an economy battered by the worst foreign-currency crunch in years.
Finance Minister Mohamed Maait confirmed the hedge Tuesday, saying it's in place for the country's fiscal year which ends next June. He declined to provide further details, but said imports total about 150 million barrels of oil a year.
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US will have 18 ETFs launched this week for 2023 weekly record
Suzanne Mcgee - Reuters
As many as 18 new exchange-traded funds (ETFs) are scheduled to launch in the United States market this week, more than double the average weekly total of 8.5 so far this year.
The flurry of new offerings would bring the total of ETF launches this month to 57, a record for this year and handily beating the 53 that arrived on the market in September 2022, according to data from CFRA Research.
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| | | | | | Exchanges | | | Cboe Global Markets and S&P Dow Jones Indices to Launch the Cboe S&P 500 Dispersion Index on September 27
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, and S&P Dow Jones Indices (S&P DJI), the world's leading index provider, today announced plans to launch the Cboe S&P 500 Dispersion Index (DSPX) on Wednesday, September 27. Jointly developed by Cboe Labs, the company's innovation arm, and S&P DJI, this new index is the latest addition to Cboe's volatility index suite and aims to provide deeper insights into U.S. equity market volatility.
Dispersion can be used by market participants to gain visibility into potential opportunities for portfolio diversification. Specifically, dispersion strategies allow investors to model the impact of company-specific risk on a portfolio by measuring the variability of volatilities for single-name stocks relative to the volatility of the index itself.
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| | | | | | Regulation & Enforcement | | | FIA highlights best practices for exchange volatility control mechanisms in new report
FIA
FIA has released a comprehensive paper, "Best Practices for Exchange Volatility Control Mechanisms," which provides essential guidance for designing robust Volatility Control Mechanisms (VCMs) at derivatives exchanges.
In today's rapidly evolving financial landscape, characterized by global uncertainties and unforeseen market events, the efficient management of financial market volatility is paramount.
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FIA and ISDA support CCP access to Fed accounts
FIA
The Futures Industry Association (FIA) and the International Swaps and Derivatives Association (ISDA) have jointly issued a letter of support to US Rep. Emmanuel Cleaver (D-Mo.) for his legislative efforts to expand access to deposit accounts offered by the Federal Reserve for clearinghouses regulated by the US Commodity Futures Trading Commission.
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ETFs may face approval delays, volatility if US govt shuts down
Bansari Mayur Kamdar - Reuters
Approvals on new exchange-traded funds, including bitcoin spot ETFs, could face delays if the U.S. government shuts down next month for the fourth time in a decade.
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| | | | | | Strategy | | | Here's how you can use the VIX to beat the stock market
Mark Hulbert - MarketWatch
The U.S. stock market is struggling, but you may still want to give the bulls the benefit of the doubt.
That's the conclusion I draw from a landmark study into using volatility as a market-timing indicator. Entitled "Volatility-Managed Portfolios," it was conducted by finance professors Alan Moreira of the University of Rochester and Tyler Muir of UCLA. The study challenged conventional wisdom's view of volatility, finding that you can beat the market over the long term by having higher equity exposure when market volatility is lower.
/jlne.ws/3t4jBGp
S&P Support Broken
Cboe (Video)
In #Vol411, Tim Biggam @Delta_Desk shares that the $VIX call/put ratio is about 3/1 today, the #VIX #futures term structure appears to be flattening on the short end and more.
/jlne.ws/461ooXQ
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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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