| December 01, 2023 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Short-sellers are endangered. That is bad news for markets.
The Economist
If you want to be liked, don't be a short-seller. Some other investors might defend you, at least in the abstract, as an important part of a healthy and efficient market. But to most you are-at best-a ghoul who profits from the misfortune of others. At worst, you are a corporate raider who bets that honest firms will go bust and then spreads lies about them until they do.
/jlne.ws/3QYBXkF
Oil's Wild Ride Is Driven by a Disruptive Band of Bot Traders
Devika Krishna Kumar and Julia Fanzeres - Bloomberg
Trading oil has perhaps never been more of a roller coaster ride than it is today. Just in the past two months, prices threatened to reach $100 per barrel, only to whipsaw into the $70s. On one day in October, they swung as much as 6%. And so far in 2023, futures have lurched by more than $2 a day 161 times, a massive jump from previous years. What's happening can't be entirely explained by OPEC's machinations, or war in the Middle East. While supply-and-demand fundamentals still dictate overall commodity price cycles, the day-to-day business of trading crude futures is increasingly dominated by speculative forces, fueling volatility and driving a disconnect between physical and paper markets. And it's not just speculators in general - traders are pointing the finger at an opaque group of algorithmic money managers known as commodity trading advisors.
/jlne.ws/3GnCZl9
BlackRock caps fee on $10bn high-yield corporate bond ETF
Alyson Velati - Financial Times
BlackRock will cap the fee on its $10.3bn iShares Broad USD High Yield Corporate Bond ETF at 8 basis points, the firm disclosed on Tuesday.
BlackRock Fund Advisors, the investment adviser to the ETF, agreed to waive a portion of its management fee through February 28, 2025, the filing notes. For now, the fund will waive 14 bps, according to the filing.
/jlne.ws/47AxBHj
Powell Keeps Rate Hikes on the Table. But He Shifted His Tone in One Subtle Way.
Megan Leonhardt - Barron's
Federal Reserve Chair Jerome Powell on Friday said that while the central bank has made significant progress on bringing inflation down to its 2% target, it's still prepared to tighten monetary policy further if needed.
/jlne.ws/3Rp0gJX
| | | | | | Exchanges | | | SGX Group and Shanghai Stock Exchange ETF Product Link debuts first pair of ETFs
SGX Group
Singapore Exchange (SGX Group) is pleased to announce the concurrent listing of two new exchange traded funds (ETF) with combined assets under management (AUM) of S$56 million. This is the first pair of ETFs launched under the product link between SGX Group and Shanghai Stock Exchange, a landmark initiative established this year to promote stock market connectivity between Singapore and China.
The surging investor appetite for ETFs in Asia reflects a growing recognition of their versatility and efficiency in diversified portfolio management. This listing expands SGX's ETF shelf, with 11 China ETFs with AUM exceeding S$1.5 billion, reinforcing SGX's position as the preferred marketplace for investors to access broad-based and thematic China ETFs.
/jlne.ws/47DlKbI
Euronext expands clearing operations: a step towards a unified European financial landscape
Back
Eurexnext
Monday 27 November saw the Euronext cash markets in Amsterdam, Dublin, Lisbon and Paris start sending their clearing activity to Euronext Clearing, the new pan-European clearing house managed by Euronext. This significant milestone establishes Euronext Clearing as the default clearing house for its European cash markets. It contributes to the vision of a seamlessly connected European financial ecosystem.
/jlne.ws/3N5PmWV
Cboe FX Outperforms in a Month of Mixed Currency Trading Results
Damian Chmiel - Finance Magnates
Institutional spot currency trading in November 2023 showed mixed results among major market operators, including Cboe FX, Deutsche Börse's 360T, Euronext FX, and Click 365. For the American Cboe FX, however, results remained above the $1 trillion threshold for the second consecutive month, a remarkably rare occurrence.
/jlne.ws/3sQesCp
Nodal Clear wins Clearing House of the Year at FOW International Awards 2023
Nodal Exchange
Nodal Clear was named Clearing House of the Year at the FOW International Awards 2023 in London during an evening ceremony following the publication's Trading London conference on November 29th. The FOW International Awards recognize innovation and achievement for firms in the derivatives industry. Nodal Clear is a clearing house providing central counterparty services for Nodal Exchange and Coinbase Derivatives Exchange. Nodal Clear has innovated in the clearing space introducing its award-winning expected shortfall methodology for initial margin calculations. Owing to the efficiency and effectiveness of its risk methodology, Nodal Exchange has become the leading power futures exchange in North America.
/jlne.ws/3Rs2KaA
Trading schedule on the Moscow Exchange during the New Year holidays
MOEX
The Moscow Exchange has determined the rules for the operation of markets during the New Year holidays in 2024.On January 3-5 and January 8, 2024, trading on the exchange markets is carried out taking into account the following features: trading on the stock and bond markets, deposit and loan markets, and the derivatives market will be conducted as usual; in the foreign exchange market and the precious metals market, trading will be carried out in all instruments, with the exception of transactions with a settlement date on the day of conclusion of transactions (transactions with "TODAY" settlements) and swap transactions, the date of settlement of obligations for the first parts of which falls on the day of conclusion of these transactions swap; concluding over-the-counter transactions with a central counterparty (CCP) in the standardized derivatives market will be carried out with settlements for all instruments, with the exception of derivatives contracts that provide for obligations expressed in Russian rubles.
/jlne.ws/46EpaJJ
| | | | | | Technology | | | Meet Our Chief Information Officer, David Hoag
OCC
"OCC is undergoing a significant transformation, both from a technology and a people perspective. We are developing a state-of-the-art, high-performing clearing and settlement system in the cloud. Our people have put forth a lot of effort, interacting and collaborating across the company to change the way they work and achieve outcomes. We are really excited about being a leader and bringing a systemically important financial market utility (SIFMU), like OCC, to the cloud."
/jlne.ws/3Rpw5SM
| | | | | | Strategy | | | Quiet Period
Cboe (Video)
In #Vol411, Dan Deming @Djd551 gives us details about activity in December $VIX #options, reminds us that we're not going to hear from the Fed next week and more.
/jlne.ws/3R3s6tK
| | | | | | Miscellaneous | | | Fears of a New World War Prey on Hedge Fund Titans and Policymakers Alike; The proliferation of interconnected conflicts is sparking comparisons with world wars past - and focusing policymakers on measures to prevent escalation
Bloomberg News
Officials and investors are starting to worry that the world is sliding toward a new era of great-power conflict, as the number of flashpoints multiplies from West Africa through Ukraine to the Middle East. With countries scrambling to protect their interests and frozen conflicts again running hot, for some, the web of overlapping conflagrations carries echoes of the period before World War I when the pacts linking major opposing blocs dragged Europe into a continental war.
/jlne.ws/46D4bHu
***** The fears may prey on the hedge fund titans and policymakers, but I pray my fears don't come true.~JJL
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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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Editor-in-Chief
| | | Jeff Bergstrom
Editor
| | | Asma Awass
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