November 01, 2023 | | | | Jeff Bergstrom Editor John Lothian News | |
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| | Observations & Insight | |
Suzanne Sprague talks to JLN at FIA Expo 2023 about changes and challenges for clearing and post-trade services JohnLothianNews.com
At FIA Expo 2023, JLN's Sarah Rudolph sat down with Suzanne Sprague, senior managing director, global head of clearing & post-trade services at CME Group, to talk about the panel Sprague was on called The Evolving Clearing Landscape. Sprague talked about CME moving to the cloud, and clearing houses moving to different margin models. She also discussed proposed regulations that could potentially impact clearing members.
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| | | Lead Stories | | Stock options bets on volatility around macro events are finally paying off Saqib Iqbal Ahmed - Reuters Options traders betting that Wednesday's Federal Reserve meeting and highly anticipated macroeconomic events later this week could cause gyrations in markets may be rewarded, if recent trends hold. Data from Susquehanna Financial Group showed that using options to bet on volatility around key macroeconomic news events has started paying off in recent weeks, after a months-long period of muted moves. /jlne.ws/3QHoe2L
US Federal Reserve holds interest rates at 22-year high Colby Smith - Financial Times The Federal Reserve held interest rates at a 22-year high on Wednesday but kept open the possibility of additional monetary tightening amid mounting evidence the US economy remains strong. The meeting is the second in a row at which the Federal Open Market Committee opted not to increase interest rates, as officials seek more clarity on whether they have sufficiently restrained consumer and business demand to bring inflation under control. After 11 increases since March 2022, the benchmark federal funds rate is now between 5.25 and 5.5 per cent. /jlne.ws/45QCTgp
How Does the World's Largest Hedge Fund Really Make Its Money? Ray Dalio's investing tactics have always been a closely kept secret, even inside Bridgewater Associates. Several years ago, some of Wall Street's biggest names set out to discover his edge. Rob Copeland - The New York Times For years, the whispered questions have passed from one Wall Street trading floor to the next. Bridgewater Associates, a global investing force, had $168 billion under management at its peak in 2022, making it not just the world's largest hedge fund, but also more than twice the size of the runner-up. Bridgewater's billionaire founder, Ray Dalio, was omnipresent in the financial media and said publicly that he had cracked what he termed "the holy grail" of investing, including a series of trading formulas bound to make money, "by which I mean that if you find this thing, you will be rich and successful." /jlne.ws/49vUtcH
Macro Hedge Funds Bounce Back After Heavy Losses in First Half; Uptick in volatility drove macro fund gains in third quarter; Traders were in 'wait and see' mode earlier in the year Liza Tetley and Bei Hu - Bloomberg Macro trades have bounced back to become the best performing hedge fund strategy in the third quarter, turning a page on a dismal first half that saw economic uncertainty weigh on managers. Asset-weighted returns for macro funds hit 3.07% in the three months through September, according to data from fund administrator Citco, which sees over $1 trillion of global hedge fund asset flows. /jlne.ws/3MuDdKL
The US economy is surging - but problems elsewhere could still torpedo profits for big companies like Apple and Tesla Huileng Tan and George Glover - Business Insider The US economys strength has defied all expectations this year â weathering recession calls, the highest interest rates in decades, and even a banking crisis. Advance estimates show GDP rose 4.9% last quarter, smashing forecasts. /jlne.ws/3SnM2tK
Yen Falls to Near 33-Year Low After Bank of Japan's Policy Move Megumi Fujikawa - WSJ The yen fell to near a 33-year low against the dollar following the Bank of Japan's policy decision, which didn't provide a clear sign of monetary tightening. The yen weakened to around 151.30 to the dollar during Wednesday's trading and approached the 152 threshold to which the currency hasn't fallen since 1990. /jlne.ws/47gZ3JC
| | | Exchanges | | CME Expands Suite of Options On U.S. Treasury Futures MarketsMedia CME Group, the world's leading derivatives marketplace, announced the expansion of its U.S. Treasury options suite with the launch of Monday expiries. In addition to the existing Wednesday and Friday expiries, Monday expiries can deliver more precise risk management around market-moving events. /jlne.ws/45QXyAJ
| | | Regulation & Enforcement | | Predictions market Kalshi sues CFTC for blocking election contracts Laura Matthews - Reuters Predictions marketplace KalshiEX LLC sued the U.S. Commodity Futures Trading Commission on Wednesday, saying the regulator overstepped its bounds when it rejected a proposal to use derivatives contracts to bet on congressional control. In June, Kalshi sought to list contracts that would let users bet on whether a particular party will control the House of Representatives and Senate in a given term. /jlne.ws/3u6e6aE
| | | Strategy | | Are VIX Speculators Offering Up a Bullish Stock Signal? Rocky White - Schaeffer's Investment Research Each week, the Commodity Futures Trading Commission (CFTC) releases a report on the aggregate long and short positions in futures markets for different types of traders. This week, I will examine how large speculators are positioning themselves in Cboe Volatility Index (VIX) futures. These traders are almost always net short, meaning they hold more short positions than long positions. /jlne.ws/3spV3Yq
Why a Low VIX Index Is Good for VIXY Andrew Hecht - ETF.com The S&P 500 index is the most diversified stock market index, but there's still room for volatility. The VIX tool measures the implied volatility of S&P 500 stocks, which reflects the past price variance; while implied volatility measures the market's sentiment of future price variance. The VIX is a compilation of the implied volatilities of the S&P 500 stocks, as measured from put and call options prices. /jlne.ws/3sdzSZL
Bitcoin options market signals potential price surge beyond $36,000 By Investing.com Pollock Mondal - Investing.com Recent data from Amberdata and Galaxy Digital suggests a swift surge in Bitcoin's price beyond $36,000 may be on the horizon. This prediction is based on the strategies currently employed by options market makers. /jlne.ws/3FGPfgj
Nasdaq Last Year Cboe (Video) In #Vol411, Joe Tigay @JoeTigay reminds us of today's Fed meeting, lets us know that the Russell 2000 is lower than it was in Oct. 2022, shares some economic data to be on the lookout for, like the jobs number this Friday and more. /jlne.ws/40nZShO
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