| June 26, 2017 | | | |  | Spencer Doar
Associate Editor
John Lothian News | |
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| | | | Lead Stories | | | This U.S. Treasuries 'Breakout Play' Has Rarely Been So Cheap
Tanvir Sandhu - Bloomberg
Rally in stocks and bonds calls for a more cautious approach; Risks of market correction are rising but yet to be irrational
The low cost to hedge a break-out from the range in long-term rates may appeal to investors seeking hedges for a more measured portfolio stance.
Strangles on the iShares 20+ Year Treasury Bond ETF, which seeks to track the returns of an index of U.S. Treasury bonds with maturities greater than 20 years, are near all-time lows.
/bloom.bg/2tb73Mo
VIX most bearish hedge fund positioning on record
Joe Ciolli - Business Insider
How low can the VIX go?
That seems to be the question hedge funds are asking themselves as they continue to bet that the so-called stock market fear gauge will fall further from current near-record-low levels.
Positioning on VIX futures, which allow investors to bet on whether or not the stock market will see big price swings, is now the most bearish on record, according to Commodity Futures Trading Commission data going back to 2004.
read.bi/2tbjhoy
****SD: And trending lower as I type.
Soc Gen combines electronic and high-touch trading teams
Hayley McDowell - The Trade
Societe Generale has completed its move to combine its electronic and high-touch trading teams in a bid to meet client demands for fully integrated trading services.
bit.ly/2tbiiV4
Gold Plunges After 1.8 Million Ounces Were Traded in One Minute
Eddie Van Der Walt - Bloomberg
Gold sank like a stone at 9 a.m. in London after a huge spike in volume in New York futures that traders said was probably the result of a "fat finger," or erroneous order.
Trade shot up to 1.8 million ounces of gold in just a minute, a level not reached even with the surprise election of U.S. President Donald Trump or Britain's vote to leave the European Union.
/bloom.bg/2tbbnvn
****SD: "No-one has a clue, apart from the unfortunate individual that pressed the wrong button." Â David Govett, head of precious metals trading, Marex Spectron Group
Markets could be too gentle for investors' own good
Michael Santoli - CNBC
Financial markets are not often as gentle and generous as they've been this year.
Just count the blessings the market gods have bestowed:
cnb.cx/2taQEI4
| | | | | | Exchanges and Clearing | | | CBOE Holdings Plans Listing of Altice USA (ATUS) Options
CBOE
CBOE Holdings, Inc. today announced it plans to list options on Altice USA, Inc, a U.S. cable provider.
bit.ly/2taMDTR
CME Group Inc. Announces Second-Quarter 2017 Earnings Release, Conference Call
CME Group
CME Group Inc. will announce earnings for the second quarter of 2017 before the markets open on Tuesday, August 1, 2017. The company has scheduled an investor conference call that day at 7:30 a.m. Central Time.
bit.ly/2tbd242
U.S. Market Holiday Reminder: Independence Day
Nasdaq
Nasdaq U.S. equities and options markets will close early on Monday, July 3, 2017, and will be closed on Tuesday, July 4, 2017, in observance of Independence Day. See chart below for details.
bit.ly/2tbkVWW
| | | | | | Regulation & Enforcement | | | Omnibus Account for Foreign Investors: Korean Market to Introduce Omnibus Accounts for Foreigners' Derivatives, Bonds
BusinessKorea
Beginning on June 26, an omnibus account system for derivatives will be implemented for foreigners. The plan is aimed at enhancing the convenience of foreign investors, which is one of conditions for the Korean stock market's joining the Morgan Stanley Capital International (MSCI) advanced index. Hedge-specific accounts for individual investors will be also introduced on the same day. 22 items including individual stocks and options will be listed for the purpose of revitalizing the derivatives market.
bit.ly/2tbmTqk
Powell suggests review of capital rule to boost central clearing
Reuters
U.S. capital rules may discourage banks from central clearing of securities and the Federal Reserve is considering reform, Fed Governor Jerome Powell said in Friday.
Capital rules that are blind to risks and require banks to hold capital based on the size the investment may be part of the problem, Powell said.
reut.rs/2tb4pqf
| | | | | | Technology | | | Chinese online broker Everbright Photon chooses Horizon platform for commodities options
LeapRate
Everbright Photon, a subsidiary of the Chinese futures house (EverBright Futures) and part of a Fortune 500 Chinese financial business, announced that has chosen the Horizon Software as its core trading technology for the new commodity options markets, which went live in China in March (DCE) and April (ZCE) this year.
/goo.gl/Wn6U8h
| | | | | | Moves | | | Invest In Volatility
PRWeb
Invest In Vol LLC is pleased to welcome Vance Harwood, President of Six Figure Investing, to its Advisory Board. Vance has become a leader in improving investors' understanding of volatility products through his site http://www.sixfigureinvesting.com. "The addition of Vance to our team will help Invest In Vol achieve its goal of making volatility more investable through education and active management", said Justin Young, Partner and Portfolio Manager at Invest In Vol.
bit.ly/2u9CcgO
| | | | | | Education | | | Weekend Review of Russell 2000 Options and Volatility - 6/19/2017
Russell Rhoads - CBOE Blog
The Russell 2000 (RUT) was up by 0.57% last week while the large cap focused Russell 1000 (RUI) gained only 0.23%. For the year RUT is now up 4.25% while RUI has gained 8.84% as large cap stocks continue to dominate 2017 after the huge outperformance of small cap stocks from election day to the end of 2016.
bit.ly/2tbmfcD
Weekend Review of Volatility Indexes and ETPs - 6/19/2017
Russell Rhoads - CBOE Blog
VXST was slightly higher while the rest of the SPX related volatility indexes dropped last week. All moves were relatively small as we have truly entered the summer doldrums, at least for broad based index volatility.
bit.ly/2tbpErG
Weekend Review of VIX Futures and Options - 6/19/2017
Russell Rhoads - CBOE Blog
VIX was a bit lower to end the week and the curve moved down as well. We retired June last week and now July is the front month and is at a premium of just over 1.80 to finish the week.
bit.ly/2tbhMqm
| | | | | | Miscellaneous | | | Machines Won't Push Humans Out of Finance, Billionaire Gundlach Says
Amanda L Gordon and John Gittelsohn - Bloomberg
In the financial industry's battle of humans versus machines, billionaire bond fund manager Jeffrey Gundlach is betting people will prevail.
"I don't believe in machines taking over finance at all," Gundlach, chief executive officer of DoubleLine Capital, said Thursday night in a cocktail-hour interview before his induction into the Fixed Income Analysts Society Inc.'s Hall of Fame.
/bloom.bg/2tb3MN4
****JB: A couple weeks ago we had the story, Just 10% of trading is regular stock picking, JPMorgan estimates. Humans will never be completely out of the loop but like it or not machines are already well established.
Once bitten, twice shy? Central banks should heed market bubble warnings
Jamie McGeever - Reuters
If central banks have learned anything from the Great Financial Crisis, the worst since the 1930s, it is that you don't need runaway inflation to raise interest rates. Financial market bubbles should be enough.
reut.rs/2u9mm5w
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