| March 04, 2022 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Traders ramp up bullish bets in U.S. oil options as prices soar
David Gaffen and Stephanie Kelly - Reuters
Bulls have surged into the U.S. crude oil options market in recent days as futures touch highs not seen in a decade, betting that crude's rally will persist, according to analysts and exchange data.
The global oil market was already tight even before Russia invaded Ukraine last week, which has since sent benchmark Brent and U.S. West Texas Intermediate (WTI) crude futures soaring over 15% to around 10- and 14-year highs, respectively.
/jlne.ws/3HMQb1g
Wheat Mounts Historic Week as War Sparks Deepening Supply Fears
Megan Durisin, James Poole, and Tarso Veloso Ribeiro - Bloomberg
This week will go down in wheat-trading history.
Chicago futures for the grain have soared more than 40% -- the most ever -- as Russia's war in Ukraine upends global grain supplies. That puts prices at a 14-year high, and milling wheat in Paris reached an unprecedented 400 euros ($438 per ton).
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Russia's war against Ukraine could spiral into the world's worst energy crisis since the 1970s, a top economic historian says
Shalini Nagarajan - Business Insider
The US and its allies have so far been careful to avoid imposing sanctions on Russian oil and gas, because doing so could impede global economic growth and supply chain recovery in the sector.
Cutting off the flow of energy from Russia would likely push up the prices of gas, rattle financial markets further during an already volatile period of high inflation, and hit consumer wallets.
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Volatile US stocks retreat as traders weigh Ukraine conflict, monetary policy
Kate Duguid, Naomi Rovnick and Hudson Lockett - Financial Times
US stock markets ended the day lower after a bumpy ride on Thursday as traders considered the effects of the escalating conflict in Ukraine on central bank policy.
Wall Street indices and stock markets across Europe fell after Russia subjected the Ukrainian port of Mariupol and the cities of Chernihiv and Kharkiv to relentless missile bombardment. Investors abandoned riskier assets, pulling money from US stocks, in particular those in the tech sector.
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Hedge funds off to 'great start' in 2022, while large-cap active funds struggle, says BofA
Christine Idzelis - MarketWatch
U.S. mutual funds that focus on large-cap stocks are still struggling to beat their benchmarks, while hedge funds are off to a "great start" in 2022, according to BofA Global Research.
Actively managed large-cap funds underperformed their Russell 1000 benchmarks on average by 12 basis points in February, lagging for a fifth straight month, BofA equity and quant strategists said in a research report Thursday. The percentage of large-cap managers beating their benchmarks dropped last month to 43%, from 51% in January.
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| | | | | | Exchanges | | | Cboe Global Markets Reports Trading Volume for February 2022
CBOE
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today reported February monthly trading volume statistics across its global business lines.
The data sheet "Cboe Global Markets Monthly Volume & RPC/Net Revenue Capture Report" contains an overview of certain February trading statistics and market share by business segment, volume in select index products, and RPC/net capture, which is reported on a one-month lag, across business lines.
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NYSE Arca halts trading in 3 Russia ETFs for 'regulatory concern'
Tomi Kilgore - MarketWatch
NYSE Arca has on Friday suspended trading indefinitely in three Russia-related exchange-traded funds, citing "regulatory concern."
The halts come as sanctions imposed on Russia in the wake of the country's invasion of Ukraine last week has led to the closing of the Russian stock market and volatility in other Russian and global financial markets. Read more about cracks in the ETF complex in MarketWatch's "ETF Wrap" column.
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Russia Holds Off Again on Reopening Stock Market
Quentin Webb - WSJ
Russian authorities will keep the Moscow stock market largely closed for a fifth straight day, as they continue to shield local shares from potentially severe selling pressure.
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MGEX Reports Trading Results for February 2022; Sets February and Year-to-Date Volume Records
MGEX
Minneapolis Grain Exchange (MGEXTM), a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), today reported record February 2022 trading volume of 311,768 contracts, a 7.6% increase from February 2021 and representing the highest volume total for February in MGEX history. Total year-to-date volume reached a record 588,919 contracts, an increase of 11.4% from the same period in 2021.
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EEX Group Monthly Volumes - February 2022
EEX
EEX Group reports the February volumes including the following highlights: Power
The European Spot markets reached a volume of 49.9 TWh with Intraday Spot markets growing by 10% to 10.6 TWh during the last month. European Power Derivatives markets achieved a trading volume of 407.7 TWh, which marks an increase of 16% compared to February 2021. Increases in the majority of the European Power markets led to this result, especially in the German (+20%), Italian (+19%), Dutch (+58%) and Swiss (+112%) Power Futures.
/bit.ly/3vEhDvY
| | | | | | Regulation & Enforcement | | | Biden's CFTC Nominees Call for More Powers to Police Crypto
Benjamin Bain - Bloomberg
President Joe Biden's four nominees to join the Commodity Futures Trading Commission told lawmakers that the main U.S. derivatives overseer should take on new responsibilities regulating cryptocurrencies. At their confirmation hearing before the Senate Agriculture Committee on Wednesday, the nominees said the agency's history overseeing crypto derivatives positions it well to do more to oversee digital assets. Rostin Behnam, who chairs the agency, told lawmakers last month that they should consider giving the regulator more authority and a budget increase of at least $100 million.
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FIA and ISDA respond to the Bank of England's approach to tiering incoming CCPs under UK EMIR 2.2
FIA
FIA jointly with ISDA has submitted its response to the Bank of England's proposed approach to tiering under UK EMIR 2.2. Overall, the associations support the spirit and goals of the BoE's approach to regulatory deference and cooperation and welcome its aims to put them at the centre of its approach.
The associations' members have long advocated that the most optimal way to manage financial stability risks is to have supervisory and regulatory cooperation, working together, and making sure that authorities have the information they need to protect the markets that benefit all participants and the real economy.
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| | | | | | Strategy | | | Oil Prices Are Spiraling. Here's How to Play It Wisely.
Steven M. Sears - Barron's
The question that must be asked is one nobody really wants to answer: Will Russia's invasion of Ukraine start World War III?
The only people who can speak to this definitively are the handful of leaders who command the world's mightiest militaries, which means everyone else is largely reacting to news reports or propaganda.
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Oil Prices Are Soaring. It's Time to Hedge or Sell.
Randall W. Forsyth - Barron's
At the top of Americans' concerns is rising inflation, especially soaring prices for energy, filling their gasoline tanks, or paying their monthly utility bills. And investors and traders have ridden the roller-coaster rise in prices, sending futures and energy-related stocks and exchange-traded funds skyward, especially after Russia's invasion of Ukraine.
That means it's time to take profits in energy plays, especially for late-arriving bulls who have piled onto the panic in oil and gasoline prices. As has ever been the case in commodity markets, the cure for high prices is high prices. With oil topping $100 a barrel, one iconoclastic analyst advises traders to buy put options on soaring futures for crude and refined-product contracts, to profit on the bubble he sees bursting.
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| | | | | | Events | | | CME Group Global Head of Commodities, Options & International Markets to Present at Raymond James Institutional Investors Conference
CME Group
CME Group, the world's leading derivatives marketplace, today announced that Derek Sammann, Senior Managing Director, Global Head of Commodities, Options & International Markets, will present at the 43rd Annual Raymond James Institutional Investors Conference on Tuesday, March 8, 2022, at 9:15 a.m. (Eastern Time).
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Derivatives Forum Frankfurt 2022
Eurex
The Derivatives Forum Frankfurt 2022 will be the first hybrid edition, with thought leadership insights, industry debates, keynote speeches and networking opportunities both in-person and online.
The Derivatives Forum Frankfurt takes place on 24-25 May 2022.
As the leading European conference, the Derivatives Forum covers trending topics for the financial industry and focuses on trading and clearing for derivatives and securities financing across asset classes.
Eurex holds its annual conferences across several European locations.
/jlne.ws/3sFvAYw
| | | | | | Miscellaneous | | | Metals Traders Hit With Margin-Call Snafu in Chaotic Week
Jack Farchy, Mark Burton, and Yvonne Yue Li - Bloomberg
A stressful week in markets got even worse for some metals traders when the main exchange's software misfired by generating erroneous margin calls, adding to the chaos at a time when brokers were already bracing for genuine cash requests.
The London Metal Exchange's clearinghouse produced "a high number" of margin calls in error, according to a note to clients on Wednesday that was seen by Bloomberg News. The incorrect margin requirements for some brokers totaled hundreds of millions of dollars on Wednesday and Thursday, according to two people familiar with the matter, who asked not to be identified.
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Editor
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