| July 27, 2018 | | | | | Spencer Doar
Editor
John Lothian News | |
|
| | | | Lead Stories | | | Cboe Global Markets Announces Senate Version of Options Markets Stability Act
Cboe
Cboe Global Markets, Inc., one of the world's largest exchange holding companies, announced that Senator Mike Rounds (R-SD) and Senator Tammy Duckworth (D-IL) today introduced S. 3283, The Options Markets Stability Act.
bit.ly/2uX1m4Q
****SD: The speed at which this is moving along is encouraging.
Caution Hits Options Markets as Liquidity Fears Flare
Gunjan Banerji - Barron's
Major U.S. stock indexes have vaulted higher this weekÂat least until Facebook's earnings-related plunge jolted the Nasdaq CompositeÂbut the options market is signaling caution. An upbeat earnings season, with the majority of companies beating estimates so far, has encouraged U.S. equity investors. The S&P 500 has risen 1.6% so far this week and snapped out of correction territory, and is very close to its January peak, despite heightened volatility. Meanwhile, U.S. stock funds have continued to pull in cash. Options trading reveals a different picture.
/goo.gl/U3Dxzs
One millennial options trader was killing it, then Facebook cost him $180,000
Shawn Langlois - MarketWatch
Dennis Cao, a 24-year-old software engineer with a penchant for risk, just got caught on the wrong side of Facebook's historic plunge. He says it cost him $180,000, or almost 40% of his account.
Rather than slither away into the internet ether, Cao took his medicine on Reddit's "WallStreetBets" forum, where he first announced his aggressively bullish, six-figure options play a few days earlier. He obviously didn't bank on Facebook issuing a revenue warning and the carnage that would follow.
/on.mktw.net/2OoE143
****SD: I knew - just knew - this story had to have come from r/wallstreetbets and that it would be accompanied by screencaps of a Robinhood account. I lurk on that subreddit from time to time to see how the risk-management averse behave. These are the last lines of the story: "While he might be wisely circling the wagons in his account, he still believes in the YOLO (you only live once) approach of riding stocks to riches. 'I'm not sure I learned much, since I am still advocating for other young people in my shoes to take the exact same risks I took,' he said. 'Just make sure you can handle it mentally and be prepared to exit with profits if you miss big on a bet.'"
So Long Volcker Inventory!
Laurent Faucqueur, Natixis - TABB Forum
Removing the market making inventory from the Volcker Rule brings clarity to the monitoring process for trading desks making a market in derivatives.
bit.ly/2LXJld5
Quinn Emanuel, Kessler Topaz Top List To Lead VIX MDL
Lauraann Wood - Law360.com
Despite several lead counsel applications flooding the docket in multidistrict litigation over alleged Chicago Board Options Exchange's volatility index manipulation, the proposed teams at Quinn Emanuel Urquhart & Sullivan LLP and Robbins Geller Rudman & Dowd LLP as well as Kessler Topaz Meltzer & Check LLP and Scott & Scott LLP emerged Wednesday as the favorites to lead the MDL's litigation with extra support on the docket.
bit.ly/2K2B8CH
Facebook's $100 billion-plus rout is the biggest loss in stock market history
Fred Imbert and Gina Francolla - CNBC
Facebook on Thursday posted the largest one-day loss in market value by any company in U.S. stock market history after releasing a disastrous quarterly report.
The social media giant's market capitalization plummeted by $119 billion to $510 billion as its stock price plummeted by 19 percent. At Wednesday's close, Facebook's market cap had totaled nearly $630 billion, according to FactSet.
/cnb.cx/2Onvm27
****JB: Anyone out there shorting Facebook before this happened? Are you going to retire now?
U.S. Senate quietly votes to cut tariffs on hundreds of Chinese goods
Andy Sullivan - Reuters
As trade tensions escalate between Washington and Beijing, the U.S. Senate quietly passed legislation on Thursday that would lower trade barriers on hundreds of items made in China.
/goo.gl/VV2CSh
****SD: Huh?
| | | | | | Exchanges and Clearing | | | CME Group Inc. Reports Second-Quarter 2018 Financial Results
CME Group
CME Group Inc. (NASDAQ: CME) today reported revenue of $1.06 billion and operating income of $667 million for the second quarter of 2018. Net income was $566 million and diluted earnings per share were $1.66. On an adjusted basis, net income was $591 million and diluted earnings per share were $1.74. Financial results presented on an adjusted basis for the second quarters of 2018 and 2017 exclude certain items, which are detailed in the reconciliation of non-GAAP results.
bit.ly/2uWeaZj
SGX reports FY2018 net profit of S$363 million
SGX
...Derivatives revenue rose 12% to S$339.8 million (S$303.1 million), contributing to 40% (38%) of total revenue.
bit.ly/2LTD0iO
BSE to launch weekly USD-INR futures and options contracts
Press Trust of India via CNBC
Currently, monthly contracts are available on all approved currency pairs, including USD-INR currency pair.
bit.ly/2LVmAqn
B3: New Nonresident Traders Incentive Program
Mondovisione
As of today, a new version of the Program of Points for the New Non-Resident Traders Incentive Program will be in effect and will remain in force until January 7, 2019.
bit.ly/2LSl7kt
****SD: "Granting of 0.00026 points for each R$1.00 traded for equity options"
Crypto Futures Expansion Won't Happen Soon, CME's Duffy Says
Brian Louis - Bloomberg (SUBSCRIPTION)
CME Group Inc. Chief Executive Officer Terry Duffy said that in his nearly four decades in trading, Bitcoin futures "might have been the most controversial launch of a product" and he reiterated the company's not in a hurry to list more cryptocurrency-related contracts.
/bloom.bg/2OknCOe
****SD: In other exchange news pertaining to crypto (via Bloomberg) - Nasdaq Holds Closed Door Event to Discuss Policing Crypto. Oh, yeah, and the SEC rejected the Winklevi's bitcoin ETF proposal. Again.
| | | | | | Moves | | | Deutsche Bank Is Cutting Staff in Chicago in U.S. Retreat
William Canny and and Ivan Levingston - Bloomberg (SUBSCRIPTION)
Deutsche Bank AG is cutting dozens of employees and consolidating space at its Chicago office as part of a broader plan to shrink its U.S. operations, according to people briefed on the matter.
The German lender's Chicago office -- which houses units including front-office trading, operations and treasury -- will be reducing headcount, said the people, who asked not to be identified discussing personnel matters. Some operations staff are being offered the choice of losing their jobs or relocating to the bank's location in Jacksonville, Florida, the people said.
/bloom.bg/2OlM4Pl
Nomura is quietly hiring some new traders
Sarah Butcher - eFinancialCareers
Nomura's fixed income sales and trading business is not doing too well. The Japanese bank released its latest quarterly results today and it was all a bit bleak. The bank's traders made a 7.4bn yen ($67m) pre-tax loss in three months. Suddenly, all those trading layoffs make a bit more sense. Except that as well as laying people off, headhunters say Nomura has a curious interest in hiring.
bit.ly/2LYDiFu
| | | | | | Regulation & Enforcement | | | Singapore and India exchanges resume talks on derivatives fight
Kentaro Iwamoto - Nikkei Asian Review
Singapore Exchange and the National Stock Exchange of India are "back in discussion" toward resolving their recent dispute over derivatives, SGX chief executive Loh Boon Chye said on Friday.
/s.nikkei.com/2K2BLfx
Fake news of Napoleon's death cited in guidance to help traders
Huw Jones - Reuters
Fake news that Napoleon had died is cited in new analysis aimed at helping commodity, bond and forex traders to stop fraud, an industry body said on Friday.
/reut.rs/2K1haIK
****SD: It also references "The Great Salad Oil Swindle"
Be Ready for Any Brexit Market Hit, U.K. Regulator Tells City
Bloomberg (SUBSCRIPTION)
Sam Woods, the central bank's top supervisor, said contingency planning for Britain's withdrawal from the European Union will be similar to its preparations for the Scottish independence referendum in 2014 and the U.K.'s Brexit vote two years later, which sent the pound plunging against the dollar. "Because of the times we live in, that's become standard business for us," he said.
/bloom.bg/2K0BoSI
| | | | | | Technology | | | BME And Bolsa Mexicana de Valores Join Forces To Promote The Market Data Business In Latin America
Mondovisione
BME and Bolsa Mexicana de Valores (BMV) today announced the creation of a joint venture to promote the Market Data business in Latin America. The objective is to foster the generation, dissemination and sale of market data about Latin American securities markets.
bit.ly/2LUm5gi
From Black Monday to BlackRock: Is Tech the Key to Crypto Dominance?
Manuel Stagars - CFA Institute Enterprising Investor
On Monday, 19 October 1987, stock markets crashed around the world
It began in Hong Kong and spread to Europe. The Dow Jones fell over 22% within a few hours.
On Black Monday, Larry Fink was working at First Boston. Maybe the loss of $100 million of the bank's money under his watch prompted him to found his own company with seven colleagues.
/cfa.is/2K61ILc
New data sets added to Nasdaq Analytics Hub
Institutional Asset Manager
...The new Social Media Sentiment data set meanwhile, is based on iSentium's patented natural language processing system, while the Supply Chain Network Exposure data set identifies critical and well-positioned companies in the global supply network.
bit.ly/2LTDuWa
| | | | | | Strategy | | | In Small Caps, Financials Rise Most From GDP Growth
Jodie Gunzberg - S&P Dow Jones Indices
On Friday morning the GDP (Gross Domestic Product) for Q2 2018 is set to be announced, and the consensus estimate from the Wall Street Journal survey of more than 60 economists is at 4.1%, the highest (actual) growth since Q3 2014. Although forecasts greatly vary this quarter, the main factors likely influencing growth are tax policy, retail sales, international trade and manufacturing shipments.
bit.ly/2Ok0LCl
| | | | | | Miscellaneous | | | State Street Global Advisors Teams with Elizabeth Banks in Digital Series, "Crazy Enough to Work" featuring Dunkin' Donuts, The New York Times, EPR Properties and Samuel Adams
MarketWatch
State Street Global Advisors, the asset management business of State Street Corporation STT, has teamed up with actress, director and business owner Elizabeth Banks to launch, starting today, a series of podcasts to raise awareness of the strong performance of several mid-cap companies that make up the SPDR S&P MIDCAP 400 ETF (MDY).
/on.mktw.net/2uVWrkL
****JB: You may know Ms. Banks from her other roles in movies such as "The Hunger Games", "Spider-Man (1, 2 & 3)", and the "The 40-Year-Old Virgin," to name just a few. How they got her to do this would be interesting to know (I would guess a really big paycheck).
Global Quantitative Tightening to Start Next Year
Fitch Rating
The combined net asset purchases of the four central banks (CB) that engaged in quantitative easing (QE) will turn negative in 2019, one year earlier than Fitch Ratings previously estimated. This underscores the shift in global monetary conditions that is underway - as strong global growth continues and labour markets tighten - and could portend an increase in financial market volatility.
bit.ly/2LUXmIB
| | | | | | | | | JLN Options is sponsored by: | | | | | | | | | | | | | | | | | | |
|
|
| | | |
| | | | 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
Publisher | | | Sarah Rudolph
Managing Editor
| | | Jeff Bergstrom
Editor
| | | Spencer Doar
Editor
| | |
|
|
Disclaimer: All John Lothian Newsletters, JohnLothianNews.com, MarketsWiki.com and MarketsReformWiki.com are products of John Lothian News, a division of John J. Lothian & Company, Inc. The opinions expressed in all John J. Lothian & Company, Inc. publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers. Futures and options trading involve risk. Past results are no indication of future performance. Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any website or newsletter content.
© 2017 John J. Lothian & Company, Inc. All Rights Reserved. |
|
|
