| September 30, 2024 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
Access powerful market indicators across the world's most actively traded global benchmark products. For more information, please visit here. | | | | | | Lead Stories | | | Traders Blow Off US Election Risks as Stocks Race Into October; S&P 500 heads for best first nine months of a year since 1997; Put-call ratio for equity options sends bullish market signal
Jess Menton - Bloomberg
US stocks survived what's traditionally their toughest stretch of the year, and investors expect the rally to keep running in October despite a contentious presidential election campaign, shifting Federal Reserve policy and fears of a pending recession. The S&P 500 Index just posted its third straight winning week and is up 5.1% in the third quarter, putting it on track for its best start to a year since 1997, according to data compiled by Bloomberg. It also has pushed the benchmark's market capitalization above $50 trillion for the first time. And oddly enough, it all happened in September, which historically is the stock market's worst month.
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India Regulator Set to Curb Booming Options Frenzy as Risks Abound; It may limit options with weekly expiry, raise contract size; Nine out of every 10 retail traders lose money in F&O: SEBI
Chiranjivi Chakraborty and Saikat Das - Bloomberg
India's securities market regulator will consider rules to limit a surge in derivatives trading in the nation, people familiar with the matter said, after growing retail participation took the speculative bets to the highest in the world. The Securities and Exchange Board of India will discuss the measures proposed earlier in July - including limiting the number of options with weekly expirations and raising the minimum contract size - at a board meeting Monday, the people said, asking not to be identified before a final announcement.
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Beijing pledges further boosts to ETF industry; Plan to encourage more tech-focused and small-cap ETFs unveiled as part of new financial stimulus package
John Sedgwick and Karen Lai - Ignites Asia via Financial Times
Chinese authorities have announced plans to step up state investment in the country's rapidly expanding exchange traded fund industry and grow the number of ETFs investing in the tech sector and small and medium-size enterprises. The plans are part of a new stimulus package unveiled by China's central bank and top financial and securities regulators on September 24, as the government strives to reignite growth and bolster the flagging stock markets in the world's second-largest economy.
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Wall Street's Income-ETF Boom Comes for Nasdaq 100 With a Twist
Vildana Hajric - Bloomberg
A new ETF on Wall Street is offering investors a novel way to eke out income from the world of stocks by targeting an unlikely index: the Nasdaq 100. Issuer Pacer ETF Distributors last week debuted a product that offers exposure to tech companies - more famous for furnishing growth than dividends - alongside amped-up income from the futures market. It joins a wave of new funds offering a slew of different ways to generate reliable income streams from equities of all stripes, often at the price of underperforming the broader market in a bull cycle.
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Hedging Goes Out the Door With Burst of China Stocks Euphoria
Sangmi Cha - Bloomberg
When it comes to Chinese equities, the dominant feeling has turned to optimism. The nation's bazooka stimulus announced last week has pushed a gauge of Chinese stocks traded in Hong Kong to its best weekly surge in almost 13 years, putting it on track to become one of the world's biggest gainers for 2024. What's more, market participants chasing the rally have sent the cost of volatility hedges over the next month spiking to a two-year high relative to six-month contracts, indicating confidence for the medium term. In just a few days, China boosted measures to spur everything from consumer spending to the housing market and local equities. The Hang Seng China Enterprises Index, which earlier this month was barely up for the year, rebounded more than 22% in 11 consecutive days, its longest streak of gains since its glory days of 2018.
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Shanghai Exchange Races to Fix Glitch That Rocked Hedge Funds; Exchange runs weekend stress tests after issues on Friday; Chinese stocks have soared on optimism over more stimulus
Bloomberg News
The Shanghai Stock Exchange ran weekend stress tests and traders braced for a potentially volatile session on Monday after transaction problems at the end of last week wrongfooted a number of quantitative hedge funds. The exchange asked brokerages to participate in the tests after its systems struggled to cope with a surge in trading activity on Friday as stocks soared. The exchange processed 270 million transactions in the weekend simulations, twice as many as the previous peak and three times the orders placed on Friday, it said in a statement.
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Russia's Novak sees oil price volatility easing despite Middle East turmoil
Reuters
Russian Deputy Prime Minister Alexander Novak expects oil prices' fluctuations will subside following volatility spurred by the tensions in the Middle East as geopolitical risks are already factored in, he told Al Arabiya News.
Novak, who also oversees the broader Russian economy, said the sanctions-hit economy will sustain any pressure and Western-imposed price caps on the country's oil.
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| | | | | | Exchanges | | | CME Group to Expand Battery Metals Suite with Launch of Spodumene Futures on October 28
CME Group
CME Group, the world's leading derivatives marketplace, today announced that it will expand its battery metals suite and launch a Spodumene CIF China (Fastmarkets) Futures contract on October 28, 2024, pending regulatory review.
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Additions and Deletions of Weekly Equity and ETF Options Classes
TMX
Bourse de Montreal Inc. (the Bourse) and Canadian Derivatives Clearing Corporation (CDCC)
hereby inform you that at the opening of trading on Thursday October 3, 2024, the following
changes will be made to the weekly equity and ETF options classes.
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| | | | | | Regulation & Enforcement | | | SEC's Gensler Won't Reveal His View on Trump's Bitcoin Reserve, Reiterates Bitcoin Isn't a Security; Gensler was responding to CNBC's question on whether the SEC chair was "warming up to top-tier crypto?"
Amitoj Singh - CoinDesk
U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler reiterated his stance that bitcoin (BTC) is "not a security" but doubled down on his stated position that regulatory clarity exists for the crypto space in an interview with CNBC on Thursday. "As it relates to bitcoin, my predecessor and I have said, that's not a security," Gensler said. "You now have a way that you can actually express that view - buy into that through exchange-traded products." Such products were approved by the SEC in January, marking a monumental shift in the agency's approach to the crypto space.
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Japan Crypto Review May Open Door to Lower Taxes, Dedicated ETFs; Officials may weigh whether to put crypto under investment law; Industry seeks to slash the levy on digital-asset gains to 20%
Takashi Nakamichi - Bloomberg
Japan is set to begin a review of the nation's cryptocurrency rules, opening up the possibility of lower taxes on digital assets and potentially paving the way for the roll out of domestic funds investing in tokens. The Financial Services Agency in coming months will assess whether the current approach of regulating crypto under the payments act is adequate, an official at the agency said, asking not be identified in line with the institution's rules.
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| | | | | | Strategy | | | The Hedge Fund Betting Fed Cuts Can't Revive 'Failing' Green Bets
Sheryl Tian Tong Lee - Bloomberg
It's wrong to expect that a cycle of interest-rate cuts from the Federal Reserve will suddenly revive the green transition, according to Barry Norris, the founder and chief investment officer of UK hedge fund Argonaut Capital Partners. "For the last few years, energy-transition insiders believed that the problems in the industry stemmed purely from high interest rates," Norris said in an interview. "Interest rates are now falling, so logically sentiment in this part of the market should be better. Instead, the insiders are going back to governments asking for more subsidies."
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MicroStrategy 2X Leveraged ETF Sees Massive Inflows In First Week Of Trading As MSTR Outperforms Bitcoin; The T-REX 2X Long MSTR Daily Target ETF (MSTU) took in $72 million in the first week of trading, according to data by Bloomberg Intelligence.
Helene Braun, James Van Straten - CoinDesk
Seven days after hitting the market, the T-REX 2X Long MSTR Daily Target ETF (MSTU) has become one of the most successful new exchange-traded funds (ETFs) on the market after attracting over $72 million. The fund, issued by REX Shares and Tuttle Capital Management, promises two times the daily performance to the stock of MicroStrategy (MSTR), the software mogul turned bitcoin strategy company, the most leverage any fund tied to MSTR gives.
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| | | | | | Miscellaneous | | | Harvard's Not-So-Smart Money: Two Decades of Poor Returns and Rich Pay; Its money managers underperformed after changing personnel and strategies at the worst times.
Janet Lorin - Bloomberg
Harvard University alumni and business luminaries gathered at the memorial service in Midtown Manhattan. They were there to honor Ron Daniel, a McKinsey & Co. managing partner and Harvard's treasurer from 1989 to 2004. Daniel, who died at age 93, oversaw astonishing growth of the school's endowment as chairman of the fund's board. Under his leadership, the university built up a kind of in-house hedge fund, Harvard Management Co., or HMC. From Boston's Federal Reserve building, with sweeping views of the harbor, HMC pioneered a strategy of long-term investments in then-exotic fare for endowments such as private equity and hedge funds.
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****** This is such smart money.~JJL
Celebrating Hispanic Heritage with Cboe Unidos
Cboe
Cboe Unidos, our Associate Resource Group (ARG) with a mission to increase visibility of Hispanic and Latinx associates at Cboe, has made a big impact since launching in 2023. Tripling in size after just one year, the group now boasts approximately 80 members.
In its first year, Cboe Unidos focused on increasing representation by hosting events and getting involved in the local community. For the past two years, members gathered in Chicago to ring the bell on the trading floor in celebration of Hispanic Heritage Month. They've also connected outside of work volunteering together at local events like the Chicago Latino film festival, one of the longest running Spanish and Portuguese language film festivals dedicated to Latino filmmakers and cinema. As Cboe Unidos continues to grow, members aim to improve opportunities for the Hispanic and Latinx community through education, mentorship and networking.
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