 | | | | | | | | January 14, 2025 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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Starting January 27, pending regulatory review, Monday through Thursday expirations will be added to Friday Henry Hub Weekly options to round out our suite of the most liquid Natural Gas Weekly and Monthly options market. Learn more.
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 Trading Technologies Expands Multi-Asset Offerings and Innovations JohnLothianNews.com Trading Technologies (TT) is set to expand its global reach and multi-asset capabilities, fueled by partnerships and innovations, executives Keith Todd and Alun Green revealed in an interview with John Lothian News at FIA EXPO. The firm plans to introduce access to Cboe's complex index options by early 2025, addressing growing demand from international clients, particularly in Asia. Watch the video »
| | | | | | Lead Stories | | | Traders Brace for S&P 500's Busiest CPI Day Since March 2023; Options are pricing in 1% move in equities gauge on Wednesday; Investors are focused on inflation as jobs market is strong
Jess Menton - Bloomberg
Options traders whipsawed by the stock market's recent gyrations are getting anxious that more bouts of volatility may arrive in the coming days, starting with Wednesday's report on consumer prices.
Soaring bond yields and robust jobs data have put extra focus on the next consumer price index report. The S&P 500 Index is expected to move 1% in either direction on Jan. 15, based on the cost of at-the-money puts and calls, according to Stuart Kaiser, Citigroup Inc.'s head of US equity trading strategy. That's the largest implied move ahead of a CPI print since the regional bank turmoil in March 2023.
/jlne.ws/4gQ1AQc
Options Traders Flag Big S&P 500 Moves as Inflation Report Looms
Vildana Hajric, Jess Menton, and Alexander Nicholson - Bloomberg
What options are saying about tomorrow's inflation report
Options traders are bracing for fresh bouts of volatility tied to Wednesday's key US consumer price index report.
The S&P 500 Index is expected to move 1% in either direction tomorrow, based on the cost of at-the-money puts and calls, according to Stuart Kaiser, Citigroup's head of US equity trading strategy. That's the largest implied move ahead of a CPI print since the regional bank turmoil in March 2023.
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Options Tied to BlackRock's Bitcoin ETF Surge to Nearly 50% of Deribit's BTC Open Interest in Two Months; Options linked to BlackRock's spot bitcoin ETF (IBIT) began trading on Nov. 19 and have since grown to half the size of Deribit's BTC options market.
Omkar Godbole - CoinDesk
The stateside demand for regulated crypto products is real.
The U.S. SEC-approved options tied to BlackRock's spot bitcoin (BTC) exchange-traded fund (IBIT), which debuted on Nov. 19, are already almost half the size of Deribit's eight-year-old bitcoin options market.
/jlne.ws/3CbkIcq
Stocks Are Close to Wiping Out Trump Bump as Rate Fears Kick In; S&P 500 briefly falls below closing level before Trump's win; Rally in Treasury yields sends ripples through equities market
Esha Dey - Bloomberg
It's the round-trip ticket no one on Wall Street wanted.
The S&P 500 Index on Monday briefly dropped below where it ended on Nov. 5, just before Donald Trump was elected president, and closed only slightly above that level on Monday. Investors are dumping stocks and interest rates are climbing as fears grow that inflation remains stubborn and the Federal Reserve will have to pare back its plans for rate cuts this year to fight it. Friday's surprisingly strong jobs data only intensified those worries.
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Amazon, Meta and Tesla reject FX hedging; Risk.net study shows tech giants don't hedge day-to-day exposures
Cole Lipsky - Risk.net
Amazon, Meta and Tesla - three of the so-called magnificent seven tech firms that drive US stock market performance - decline to hedge their day-to-day foreign exchange exposures. So concludes a study by Risk.net of the firms' quarterly filings over the past five years. Corporates operating in dozens of countries typically hedge the FX risk from their foreign revenues and expenses with derivatives. But a study of the three companies' filings shows no evidence of any FX hedging activity. What's
/jlne.ws/3PBXH5w
| | | | | | Exchanges | | | BlackRock launches Bitcoin ETF on CBOE Canada
Tari - AltcoinBuzz
BlackRock has launched a Bitcoin ETF in Canada. The iShares Bitcoin ETF, which has IBIT (CAD) and IBIT.U (USD) trading symbols, allows investors to invest in crypto.
This action underlines BlackRock's focus on Bitcoin ETFs, advancements, and investments in digital assets.
What is the iShares Bitcoin ETF?
The iShares Bitcoin ETF aims to track Bitcoin's net performance in terms of fees and other costs. It focuses entirely on the iShares Bitcoin Trust ETF, which has long-term investments. It enables you to access the Bitcoin market without needing a digital wallet or having custody concerns.
/jlne.ws/3DUkR4x
ICE Sees Highest Commodities Trading Volume Day in its History
ICE
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of technology and data, today announced that on Friday, January 10, 2025, ICE reported the highest commodities volume day in its history with a record 9.1 million futures and options traded, including a record 8.7 million energy futures and options, and a record 6.1 million oil futures and options. On January 10, 2025, ICE saw trading records across several of ICE's oil benchmarks, including 999,000 Gasoil futures and options, 905,700 ICE WTI (Cushing) futures and options, 214,200 ICE Dubai (Platts) futures and 104,400 ICE Murban futures.
/jlne.ws/3WkJJZv
CME Group International Average Daily Volume Reaches Record 7.8 Million Contracts in 2024, Up 14% from 2023
CME Group
CME Group, the world's leading derivatives marketplace, today announced that its international average daily volume (ADV) reached a record 7.8 million contracts in 2024, up 14% from 2023. Reflecting all trading reported outside the United States, this was driven by record growth in Energy up 31%, Metals up 27%, Agricultural up 25%, Interest Rate up 12% and Foreign Exchange products up 10% compared to the same period in 2023.
/jlne.ws/3WeU49n
FICC Sponsored Service Volumes Exceeded USD$2 Trillion at the End of 2024, Marking a New Peak and an 83% Year-over-Year Increase
DTCC
The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced that Fixed Income Clearing Corporation's (FICC) Sponsored Service volumes reached USD$2 trillion at the end of 2024, marking a new peak volume and an 83% year-over-year increase. In addition, FICC's Indirect Clearing Relationships grew to 7,200, marking a new milestone and representing a 20% growth in indirect relationships year-over-year. This growth comes as more firms begin to prepare and implement solutions to meet expanded US Treasury clearing mandate requirements.
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EEX Press release - EEX Group Annual Volumes 2024: continued growth across key markets
EEX
In 2024, EEX Group further solidified its position as a global commodity exchange by achieving further overall growth across its various asset classes. Throughout the year, EEX Group continued to drive market development in collaboration with its customers and focused on the extension of its product portfolio across both established markets and new areas, such as the Guarantees of Origin sector. In addition, the Group also expanded its reach through the establishment of a new EEX subsidiary in Japan, where traded volumes of EEX Japan Power derivatives contracts have almost quadrupled year-on-year.
/jlne.ws/4ju7fxl
Moscow Exchange Trading Volumes in December 2024
MOEX
In December 2024, total trading volumes across Moscow Exchange's markets was RUB 142.3 trln. In 2024, Moscow Exchange progressed in developing and rolling out new tools and services that address the needs of brokers, asset management companies and banks serving retail and institutional investors in the Russian exchange market.
/jlne.ws/40xFs7y
| | | | | | Regulation & Enforcement | | | Amazon, Meta and Tesla reject FX hedging; Risk.net study shows tech giants don't hedge day-to-day exposures
Cole Lipsky - Risk.net
Amazon, Meta and Tesla - three of the so-called magnificent seven tech firms that drive US stock market performance - decline to hedge their day-to-day foreign exchange exposures. So concludes a study by Risk.net of the firms' quarterly filings over the past five years. Corporates operating in dozens of countries typically hedge the FX risk from their foreign revenues and expenses with derivatives. But a study of the three companies' filings shows no evidence of any FX hedging activity. What's
/jlne.ws/3PBXH5w
| | | | | | Strategy | | | TLT Options Signal No Fear as Yields Spike Higher
Mandy Xu - Cboe
US yields continued their climb higher last week on the back of robust economic data, with the market now expecting just one more Fed rate cut this year (down from 1.75 just a week ago). Despite the large sell-off in bonds, what stands out is how remarkably calm sentiment has been in the options market this time around.
/jlne.ws/4jhWAWo
| | | | | | Events | | | Bitcoin ETF Index Options: Cboe Webinar To Break Down New Trading Tool
Abbey Higginbotham - Benzinga
Cboe Global Markets will host a virtual webinar on Thursday, Jan. 16 from 11 a.m. to 12 p.m. EST, introducing Bitcoin ETF Index Options. This new financial product expands ways to trade and manage bitcoin exposure on regulated exchanges.
/jlne.ws/40cPgTb
| | | | | | Education | | | VIX Futures Backwardation Explanation
tastylive (Video)
The hosts of "Options Trading Concepts Live" discussed the current state of the market with a focus on trading strategies amid recent market volatility. They noted a substantial market downturn, contrasting with Bitcoin's sharp rise. The conversation highlighted strategies like utilizing mobile platforms, selling puts to finance calls, and analyzing implied volatility for trade management. Upcoming earnings, particularly from major banks, and the importance of monitoring the volatility curve were also emphasized.
/jlne.ws/4az1Hxv
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