| October 17, 2024 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Robinhood Plans to Give Traders Access to Futures, Index Options
Paige Smith - Bloomberg
Robinhood Markets Inc. is broadening its offerings to futures trading and index options as the retail brokerage aims to attract more sophisticated investors to its platform. The futures contracts investors will be able to trade include stock indexes, currencies, metals and energy including natural gas and crude oil, with an access commission of 50 cents for Robinhood Gold members and 75 cents for other customers. Cryptocurrency futures will also be available, the company said Wednesday, confirming an earlier Bloomberg News report.
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Foreigners Step Up Options Trading on Volatile Korean Stocks; Trading of single-stock contracts hits record on higher swings; Optiver sees more growth in the market that's still trailing
Youkyung Lee - Bloomberg
For years, the South Korean exchange sought to lure investors to its single-stock options with little success. That's starting to change. The recent bout of volatility that's pushed up equity trading also sent the volume of the contracts surging. The number of options on companies including brokerage Mirae Asset Securities Co., battery-materials supplier LG Chem Ltd. and biotech Seegene Inc. reached peaks. Chip giant Samsung Electronics Co., the nation's biggest firm, saw trading of its contracts climb to the highest level since 2018.
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India equity option traders hunt for new playgrounds as tighter rules loom
Jaspreet Kalra and Nimesh Vora - Reuters
Millions of Indian retail traders are exploring alternative ways to earn profits ahead of stricter regulations on trading equity derivatives next month, but their transition is unlikely to be smooth, investors and brokers say.
Derivatives trading in India has boomed in the past few years, with short-term index options bets pushing up the notional value of options traded on the country's exchanges to the highest globally.
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Man Behind the MOVE Index Predicts Post-Election Furor in Bonds; MOVE Index creator Bassman says it anticipates historic swings; Index jumped as its one-month-ahead view extended past Nov. 5
Ye Xie - Bloomberg
Bond investors are bracing for historic yield swings in the days after the Nov. 5 US presidential election, according to the creator of a decades-old volatility gauge.
Options prices anticipate that Treasury yields across maturities will move about 18 basis points immediately after the election, according to Harley Bassman, who created the MOVE Index of expected Treasury market volatility in 1994. For the rest of the rolling one-month period, the expected average daily move is 6 basis points, he said.
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EXECUTION MATTERS: Options Trading in Focus
Editorial Staff - Traders Magazine
The US options market continues to be a dynamic growth story that has the attention of traders, brokers, trading venues, and infrastructure technology providers.
Average daily options volume reached 47.4 million contracts in September, up 7.5% from the year-prior period, according to Options Clearing Corp. data, and 2024 is on pace to be a record year. Options market developments in the news recently include an academic research report about retail options trade execution, and IEX Group's announcement that it plans to launch what would be the 19th US options exchange.
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| | | | | | Exchanges | | | Cboe Global Markets and S&P Dow Jones Indices Plan to Launch New Cboe S&P 500 Constituent Volatility Index (VIXEQ)
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 Constituent Volatility Index (VIXEQ Index), calculated by Cboe Global Indices. Using an adaptation of Cboe's proprietary VIXÃ Index methodology, the VIXEQSM Index is designed to measure the market cap weighted 30-day implied volatility of a basket of S&P 500 constituents, as represented by the Cboe S&P 500 Dispersion Basket Index (DSPBX Index). The announcement was made by Cboe and S&P DJI at Cboe's 39th annual global Risk Management Conference (RMC), currently taking place in Snowbird, Utah.
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Cboe CEO Says Firm Still Has Appetite for Deal at 'Right Price'; Tomczyk also says he's 'not in a rush' to name a successor; Derivatives and exchange network grew through M&A over years
Katherine Doherty - Bloomberg
Cboe Global Markets Inc. Chief Executive Officer Fred Tomczyk said the firm still has appetite to do deals if the right opportunity emerges.
"We just haven't found the right target at the right price," Tomczyk said in an interview with Bloomberg TV on Thursday. "We don't want to do an acquisition that doesn't make a difference."
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Cboe CEO on Robinhood, Derivatives, M&A
Bloomberg (Video)
Cboe Global Markets CEO Fred Tomczyk discusses the Cboe's index options coming to Robinhood, demand for derivatives and the exchange's appetite for M&A. Speaking on "Bloomberg Open Interest," Tomczyk also says he has nobody in mind right now to succeed him as CEO.
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Robinhood to Offer Cboe's Index Options, Expanding Retail Access
Cboe
Cboe Global Markets (Cboe: CBOE), the world's leading derivatives and securities exchange network, and Robinhood Markets Inc. today announced at the HOOD Summit in Miami, Florida, Robinhood's upcoming launch of Cboe's index options on its platform. For the first time, Robinhood customers will soon be able to trade index options - including Cboe's flagship S&P 500 Index (SPX) options, Cboe Volatility Index (VIX) options, Russell 2000 Index (RUT) options and Mini SPX (XSP) options - expanding their trading capabilities on its platform. Cboe's proprietary suite of index options will provide Robinhood's customers potential new ways to gain broad U.S. market exposure, hedge against U.S. large-cap and U.S. small-cap equity market volatility, generate income and capitalize on market movements1 on Robinhood's platform. Index options offer the benefits of cash-settlement (accounts are debited or credited in cash; there is no physical transfer of shares) and European-style exercise (options expire on their expiration date; there is no risk of early assignment).
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| | | | | | Moves | | | Numerix Expands Expertise with Acquisition of Convertible Securities Platform Kynex; Move Strengthens Numerix's Risk Management Solutions and Fixed-Income Coverage
Numerix
Numerix, a leading capital markets Front-to-Risk technology provider, is pleased to announce the acquisition of Kynex, a market leading financial platform known for its expertise in convertible securities valuation, portfolio and risk management, and trade flow/order management. This strategic acquisition further extends Numerix's asset class coverage, confirming Numerix's position as a leading provider of pricing and risk management solutions. Kynex has an established client base comprised of the industry's most respected names, including investment banks, asset managers, hedge funds and broker-dealers. Kynex's platform capabilities align seamlessly with Numerix's suite of Front-to-Risk solutions. This acquisition enhances Numerix's leadership in providing best-in-class analytics, solidifying its commitment to delivering comprehensive and sophisticated solutions that meet the evolving needs of financial institutions worldwide.
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Amundi Technology selected by Thomas Miller Investment to bolster operational processes; Solution from Amundi will cover the entire front-to-back value chain, enabling improved response times for clients.
Wesley Bray - The Trade
Asset manager Thomas Miller Investment (TMI) has selected Amundi Technology and its ALTO Investment platform to bolster its operating model and consolidate its investment management systems. By using ALTO Investment, TMI will leverage a solution covering the entire front-to-back value chain.
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| | | | | | Strategy | | | Opinion: NYSE stocks at new highs pump the market - but the VIX is sending mixed signals; S&P 500 looks solid, and charts are positive for Amphenol, APA, wheat and Walgreens
Lawrence G. McMillan - MarketWatch
The S&P 500 Index (SPX), continues to advance, making a series of new all-time highs. There is support in the zone between 5,670 and 5,770. There is no formal resistance at this time, but we often look at the +4ÃÆ "modified Bollinger Band" (mBB) as a target. That band is rising and is near 5,900 at this time.
The McMillan Volatility Band (MVB) buy signal from early August remains in place (green "B" on the accompanying SPX chart). It has a target of the +4ÃÆ Band as well.
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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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| | | Jeff Bergstrom
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