 | | | | | | | | November 08, 2024 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | IEX Joins as Sponsor of John Lothian News to Mark Entry into Equity Options Trading
ELMHURST, IL - John Lothian News (JLN) is proud to announce IEX as its newest sponsor, underscoring a shared commitment to industry transparency and innovation. IEX's sponsorship includes the flagship John Lothian Newsletter, the JLN Options Newsletter, and the website JohnLothianNews.com, where they will support vital industry insights and connect with JLN's engaged readership as IEX enters the equity options exchange space.
The collaboration marks the continuation of a longstanding relationship between IEX and John Lothian News, built on a mutual dedication to advancing market integrity and informed trading. Since 2000, The John Lothian Newsletter has been a respected source in the industry, delivering daily updates, expert commentary, and deep dives into the latest trends and issues that matter most to traders, market participants, and decision-makers alike.
John Palmer, Head of Options at IEX Group, commented on the collaboration, "We are excited to work with one of the industry's most respected voices to share the value of our customer-first solutions for options. The asset class continues to evolve, and John is a trusted source for the trends that matter most to investors, market participants, and decision-makers."
Quote from John Lothian, Publisher of John Lothian News: "We are thrilled to welcome IEX as a sponsor of John Lothian News and into the equity options exchange space. IEX has long been a respected leader in promoting transparency and fairness in the equities market, and their expansion into equity options is a powerful testament to that mission. We're excited to support IEX's journey and amplify their vision through our platform, helping our readers stay at the forefront of industry developments."
Through this partnership, IEX aims to further engage with the trading community, providing new insights and resources to inform its foray into equity options trading while promoting integrity and growth in the marketplace.
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Congratulations to CME Group Chairman and CEO Terry Duffy, who was given another year on his contract, and to Lynne Fitzpatrick, who added the title of president along with her CFO role. Additionally, CME announced that Julie Holzrichter would be stepping down as chief operating officer and assuming a senior advisor role and would be replaced as COO by Suzanne Sprague, who has been senior managing director and global head of clearing and post-trade services since 2022 and assumes the title of chief operating officer and global head of clearing. Sprague is taking on additional responsibilities beyond her current role, a CME spokesperson said.
Flack Global Metals (FGM), a steel industry platform, has executed the first-ever European hot rolled steel options trade. The trade was handled by Flack Metals Trading SA, FGM's global trading arm in Switzerland, and cleared on the Chicago Mercantile Exchange. This new options trade aims to enhance market liquidity and provide better price discovery, supporting FGM's international operations in ferrous and non-ferrous material trading. ~JJL
| | | | | | Lead Stories | | | Trading in Currency Options Surged to Record After Trump Victory; Daily volume of FX options rose past $160b, according to DTCC; Dollar surged as traders piled into so-called Trump trades
Vassilis Karamanis - Bloomberg
Trading of currency options swelled to a record after Donald Trump's victory in the US presidential election, as traders rushed to bet on further dollar gains. Over $160 billion worth of contracts exchanged hands on Wednesday, the highest daily volume in data going back to 2013, according to the Depository Trust & Clearing Corporation.
/jlne.ws/4fGaMWC
Treasury volatility gauge slumps after markets navigate election and Fed
Jamie Chisholm - MarketWatch
The market's navigation of the U.S. election and Federal Reserve policy decision has seen investors sharply pare back bets on volatility.
The CBOE VIX index, which measures expected volatility in the S&P 500 via option prices and is thus known as Wall Street's fear gauge, was hovering around 22 on Monday. It's long-term average is about 19.5.
/jlne.ws/3Z0GAjr
Market Fear Gauge Falls Further After Swift Election Result
Connor Smith - Barron's
The CBOE Volatility Index, or VIX, continued to plummet in the wake of the election results.
The market's fear gauge was elevated heading into election day because many on Wall Street worried a drawn out vote-counting process could have dragged on for days, or even weeks.
/jlne.ws/3Cjs513
Trump victory hands hedge funds $1.2bn win from bet against renewables; Clean energy shares have tumbled on fears US president-elect will scrap subsidies and tax breaks
Mari Novik, Rafe Uddin and Rachel Millard - Financial Times
Investors running bets against renewable energy stocks have racked up profits of more than $1.2bn from the heavy sell-off that swept the sector in the wake of Donald Trump's US presidential election victory. Arrowstreet Capital and Qube Research & Technologies were among firms that had built up short positions against companies such as Norwegian hydrogen company Nel and German wind turbine manufacturer Nordex, according to data group Breakout Point.
/jlne.ws/3O15Lw0
What a Trump Administration Means for the US Bond Market; The return of rates volatility?
Tracy Alloway and Joe Weisenthal - Bloomberg
The US election is over and Donald Trump has won a second term as president. Stocks have rallied on Trump's win, of course, but some of the more interesting moves have taken place in the bond market. Not only have yields on US Treasuries shot up, but expectations for volatility in the world's most important market were also shifting higher ahead of Trump's win. All of this is happening even though the Federal Reserve is widely expected to cut benchmark rates again this week. So what's driving higher yields? On this episode, we speak with Harley Bassman, managing partner at Simplify Asset Management and creator of Convexity Maven, about all the recent moves in bonds and what could be coming next. This transcript has been lightly edited for clarity.
/jlne.ws/4hIZvqj
South Korea to respond if market volatility heightens excessively, finance minister says
Reuters
South Korea's finance minister said on Friday that authorities will respond in a timely manner if volatility heightens excessively in financial markets.
Minister Choi Sang-mok said the government's 24-hour monitoring system, which had been run to monitor the Middle East situation, would be expanded to cover financial and foreign exchange markets.
/jlne.ws/3YXW2Nb
| | | | | | Exchanges | | | Euronext announces its new strategic plan "Innovate for Growth 2027"; "Innovate for Growth 2027" targets the acceleration of Euronext's revenue growth through innovation and diversification.
Euronext
Euronext, the leading European capital market infrastructure, today released its new three-year strategic plan, "Innovate for Growth 2027". "Innovate for Growth 2027" sets out the Group's ambition to leverage Euronext's presence on the entire capital markets value chain in Europe to accelerate growth through innovation and efficiency. Euronext announces an updated capital allocation policy with a focus on shareholders' returns and strategic flexibility. In line with this new capital allocation policy, Euronext will launch a EUR300 million maximum share repurchase programme on 11 November 2024.
/jlne.ws/4fG3Toe
SPAN 2 Framework Equity Pod Parameter Changes - Effective November 08, 2024
CME Group
As per normal review, CME Clearing has undertaken a review of the parameters within the stress value-at-risk ("SVaR") sub-component of the SPAN 2 framework's market risk component for the equity pod. Following this review, CME Clearing has determined it will implement adjustments to these parameters to further align with the observed implied volatility changes for E-mini S&P 500 options across the volatility skew. In general, these parameter changes are expected to increase the portion of the margin requirement coming from the SVaR sub-component for certain portfolios containing contracts within the equity pod.
/jlne.ws/48KsZ2L
CME Group Announces Winners of the 21st Annual University Trading Challenge
CME Group
CME Group, the world's leading derivatives marketplace, today announced the winners of its 21th annual University Trading Challenge, led by Indiana University.
/jlne.ws/3YCPy4V
Euronext publishes Q3 2024 results
Euronext
In Q3 2024, Euronext delivered a strong performance, driven by a diversified business model, the successful expansion of Euronext Clearing and continued cost discipline. Euronext reached its "Growth for Impact 2024" strategic plan targets one full quarter in advance.
/jlne.ws/4fk2XWB
NYSE Group Announces 2025, 2026 and 2027 Holiday and Early Closings Calendar
Intercontinental Exchange, Inc.
NYSE Group, part of Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of technology and data, today announced the 2027 holiday calendar and early closing dates for its cash equity markets: New York Stock Exchange, NYSE American Equities, NYSE Arca Equities, NYSE Chicago and NYSE National, as well as the NYSE American Options, NYSE Arca Options and NYSE Bonds markets. The 2025 and 2026 holiday and early closing dates are also set forth below.
/jlne.ws/40Fapam
| | | | | | Strategy | | | How Risk Assessment Frameworks Can Be Used to Prioritize and Manage Systemic Risks
Michael Leibrock, Managing Director, Credit Risk Management - OCC
I've held a number of enterprise risk management positions at financial institutions during my 30-plus-year career, primarily in the areas of counterparty credit and systemic risk management. All roles required the risk teams under my responsibility to identify, assess, and mitigate credit and other forms of risks to my organizations, as well as to the broader financial system.
One of the most important topics I've faced throughout my career is the real-world relevance of the risk assessment framework covered in the Traditional ERM Practices course I'm teaching this semester in the Enterprise Risk Management program at Columbia's School of Professional Studies (SPS).
/jlne.ws/4eDrhBT
What will happen to the U.S. dollar, deficit and debt under Trump? Watch gold.; If Trump starts 'scaring' people with his fiscal policies, 'gold will jump,' says economist Peter Morici
Myra P. Saefong - MarketWatch
Gold's performance may offer hints on what will happen to the U.S. dollar, and how the U.S. deficit and debt story will play out, as incoming U.S. President Donald Trump takes office, analysts say - with the metal's volatile moves so far this week speaking volumes about the uncertainty on hand.
On the heels of the election, the "U.S. deficit is more top of mind than ever," and international investors - retail, institutional, and central banks - all have their eyes on the U.S., said Joe Cavatoni, senior market strategist at the World Gold Council. They'll be watching for what Trump's administration does to impact the debt, he noted.
/jlne.ws/3YIwHWc
| | | | | | Miscellaneous | | | The Polymarket 'whale' actually made $85 million, far more than originally thought
Filip De Mott - Business Insider
A Polymarket trader who bet tens of millions on Donald Trump's presidential win appears to have raked in a much larger profit than previously known.
A new estimate now places that figure at more than $85 million, well above the earlier tally of $48 million, according to research from the blockchain-analysis firm Chainalysis.
/jlne.ws/40I3WeL
Why it's way easier to call US elections than pick stocks
Stuart Kirk - Financial Times
One of my close friends has two stocks in his self-managed pension plan, which is roughly the same size as mine. By contrast, adding up the holdings in the four equity funds in my Sipp comes to 1,736. Who's right?
To be fair, David loves risk. He pushes boundaries - to put it politely - and is a fearsome poker player. Post-Covid, he purchased International Airlines Group and Deliveroo when everyone said we would never fly or order a curry ever again.
Well we did and his money doubled. Easy peasy. But then, so was predicting the result of the US election to Donald Trump supporters. I, on the other hand, have written endlessly of my distrust of stock picking. Requires a lot of hindsight, it seems to me.
/jlne.ws/4hHkolG
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| | | | John Lothian News (JLN) is the news division of John J. Lothian & Company, Inc. (JJLCO). The online media and financial services firm is staffed by derivatives industry, journalism and technology professionals. | | | | | | | John Lothian News Editorial Staff: | | | John Lothian
Publisher | | | Sarah Rudolph
Editor-in-Chief
| | | Jeff Bergstrom
Editor
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