| March 30, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Two Leveraged VIX Funds Are Back on Wall Street Amid SEC Warning
Sam Potter and Emily Graffeo - Bloomberg
Two stock-volatility funds are launching on Wall Street on Wednesday, despite stoking U.S. regulator concern about the risks of investing in complex exchange-traded products prone to trading disruptions.
The 1x Short VIX Futures ETF (ticker SVIX) is a wager on calm markets while the 2x Long VIX Futures ETF (UVIX) is an amplified bet on a jump in equity price swings. The pair, from Volatility Shares LLC, are effectively revamped versions of trades that collapsed in the February 2018 "Volmageddon" episode and delisted after Covid turmoil, respectively.
/jlne.ws/3iSnKoJ
BofA Warns Stock Surge Is Bear-Market Trap With Curve Inverted
Vildana Hajric and Katherine Greifeld - Bloomberg
The 11% surge in U.S. stocks in the past two weeks has the hallmarks of a bear-market rally that might give way to deeper losses.
That's the conclusion of analysts at Bank of America, who say warning signs are flashing for a market that has climbed "despite clearly weaker fundamentals," including a Federal Reserve bent on raising rates sharply this year to battle persistent inflation.
/jlne.ws/36zTKvn
Billionaire bond king Bill Gross calls meme stocks GameStop and AMC lottery tickets - and says there's no real value behind them
Shalini Nagarajan - Business Insider
Both companies have "very little" behind them, and their stocks will fall, he told Yahoo Finance on Tuesday.Gross said millennial retail traders simply believe that stocks go up, and think they deserve double-digit gains.
Legendary investor Bill Gross is still betting Reddit darlings GameStop and AMC will tumble, despite their recent comeback.
/jlne.ws/3wPSgaQ
Traders Hopes Russia-Ukraine Peace Tempered by Skepticism, Recession Fear
Ruth Carson and Emily Barrett - Bloomberg
Global investors took some comfort from prospects for any potential peace deal in Ukraine Tuesday but a strong sense of skepticism tempered gains in risk assets.
European stocks fared best with a more modest rise seen in the U.S., and oil quickly pared an initial slump. A rebound in Treasuries and the yen underscored the fact that it was a non-traditional risk-on move.
/jlne.ws/36ZortM
| | | | | | Exchanges | | | CME Group to Launch North European Hot-Rolled Coil Steel Options on May 2
CME Group
CME Group, the world's leading derivatives marketplace, today announced that it will launch an options contract on its North European Hot-Rolled Coil Steel (Argus) futures on May 2, pending regulatory review.
/jlne.ws/3NL2xLN
Cboe continues global expansion with changes to technology and international finance senior leadership; The promotions follow swathes of recent senior leadership changes made by the exchange operator to reflect its growing presence globally.
Wesley Bray - The Trade
Cboe Global Markets has selected a new chief technology officer and a senior vice president for international finance from within its own ranks to support its plans for expansion. Tim Lipscomb, has been promoted to senior vice president and chief technology officer, while Stephanie Renner has been selected to assume the role of senior vice president, international finance.
/jlne.ws/3JU7WO8
LME Is 'Open for Business' Amid Calls to Sanction Russian Metal
James Attwood and Yvonne Yue Li - Bloomberg
The London Metal Exchange has no plans to ban Russian metal from its platforms on the grounds that governments are responsible for setting any sanctions, according to a senior exchange official.
The LME is "open for business," Adrian Farnham, chief executive officer of the LME's clearing house, who has been tapped to head the exchange on an interim basis, told the CRU World Copper Conference in Santiago. "Our view is that it's up to governments to set sanctions. We don't think it's our role to go ahead."
/jlne.ws/3LJYRbl
FEX Global Suspension of ESPO Asian Crude (Argus) Futures and Options Contracts
FEX Global
The Board of Directors of FEX Global have determined to indefinitely suspend for trading all futures and options products referencing the ESPO Asian Crude (Argus) Benchmark. This suspension will come into effect after the close of today's trading session. A market notice has been published at 9.30am today AEST.
FEX Global is deeply concerned about the invasion of Ukraine and believe that this action is in line with both the legal and other sanctions that have been imposed on Russia and Belarus as well as the intent of those sanctions.
/bit.ly/35mGeKM
| | | | | | Regulation & Enforcement | | | Proposed Rule Change to Amend FINRA Rule 2360 (Options) to Increase the Position and Exercise Limits for Conventional Options on Certain Exchange-Traded Funds
FINRA
Financial Industry Regulatory Authority, Inc. ("FINRA") is filing with the Securities and Exchange Commission ("SEC" or "Commission") a proposed rule change to amend Rule 2360 (Options) to increase the position and exercise limits for conventional options on certain exchange-traded funds ("ETFs").
/jlne.ws/3ILA44A
| | | | | | Strategy | | | Barclays regulatory debacle offers opportunity in VXX volatility product, trader says
Steve Goldstein - MarketWatch
Barclays this week announced it had made what amounted to a $600 million clerical mistake â it sold more securities than it was authorized to sell.
The Financial Times reported the mistake was that Barclays BCS, used to have an automatically increased shelf registration at the U.S. Securities and Exchange Commission. However, that was removed following a trading scandal â the report didn't say which one â but Barclays kept operating under the assumption it had such a registration in place when it didn't.
/jlne.ws/3uGcHo3
| | | | | | Miscellaneous | | | Robinhood Could Be the Millennial and Gen-Z 'Schwab.' Execution Is Key.
Sabrina Escobar - Barron's
Robinhood Markets could be the Charles Schwab for millennials and Generation Z, according to Morgan Stanley. But first, the online broker must navigate a host of near-term challenges â from rising interest rates to increased competition, the analysts said.
Morgan Stanley initiated coverage of Robinhood (ticker: HOOD ) shares on Wednesday with an Equal-weight rating and a $15 price target. The analysts believe Robinhood could evolve to become a financial "super app" that provides a suite of financial services for younger demographics as they age into their prime earning and savings years.
/jlne.ws/3uFe7PM
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