| September 11, 2024 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
|
| | | | Observations & Insight | | | 
Lake Geneva Yacht Club and Chicago's Futures Markets: A Shared Legacy
JohnLothianNews.com
The intertwined history of the Lake Geneva Yacht Club, the Chicago Board of Trade, and the City of Chicago traces back to the 19th century, with key figures like Julian Sidney Rumsey and Nathaniel Kellogg Fairbank establishing deep connections through sailing and business.
When I mentioned the news about my cousin Tom being hired as the new manager of the Lake Geneva Yacht Club ("LGYC") yesterday in JLN, I mentioned Thomas "T" Freytag, a co-founder of Geneva Trading, as a contemporary reference to give it relevance to the normal newsletter fodder. However, the history of Chicago's futures markets and the LGYC have a common founder in Julian Sidney Rumsey.
In fact, the City of Chicago, the Chicago Board of Trade (CBOT), and the LGYC share an intertwined history dating back to the mid-19th century, with the Sheridan Trophy serving as a symbolic link between these institutions.
Read more »
| | | | | | Lead Stories | | | Velocity Clearing expands options trading operations with new Chicago office; New location will also allow the firm to expand its execution, clearing and custody operations.
Wesley Bray - The Trade
Financial services firm Velocity Clearing has opened a new office in Chicago as part of the expansion of its execution, clearing and custody operations including the options markets. To commemorate the milestone, Velocity Clearing representatives will ring the closing bell at the Cboe Global Markets trading floor in Chicago on Monday, 23 September at 15:15 CT.
/jlne.ws/3BbQtkw
'Earnings and macro and VIX, oh my'; Small caps, big problems
Robin Wigglesworth - Financial Times
Credit for the headline goes to Bank of America's small-caps analyst Jill Carey Hall, whose latest report on the segment is pretty bearish for someone who covers it.
As Unhedged's Rob Armstrong and Aidan Reiter wrote overnight, the small-caps renaissance that we excitedly covered earlier this summer has already fizzled out (the photo choice then of ill-fated Stringer Bell wasn't a coincidence, however).
/jlne.ws/4d82g0G
Bank Stocks Hedges in India Are Suddenly Looking Cheap; Bearish options outstanding dropped versus bullish ones; Easing of liquidity could help banks, Jefferies says
Abhishek Vishnoi and Chiranjivi Chakraborty - Bloomberg
Options traders are getting less skeptical about Indian banks after months of underperformance.
The cost of hedging against volatility in the NSE Nifty Bank Index is near its lowest level since January relative to the broader NSE Nifty 50 Index, indicating less demand for protection. Meanwhile, the number of bearish options outstanding on the banking gauge hit a three-week low on Friday versus bullish contracts, data compiled by Bloomberg show.
Indian importers favour FX options as rupee holds steady, premiums soar
Nimesh Vora and Jaspreet Kalra - Reuters
Indian importers are exploring options strategies to hedge against currency risks amid muted volatility in the rupee, moving away from outright forwards that have become expensive, traders said.
Premiums, which reflect the interest rate differential between the United States and India, have surged as the Federal Reserve is expected to embark on a rate-cutting cycle, starting next week.
/jlne.ws/4geQTad
State Street, Galaxy Launch Crypto-Linked ETFs Even as Outflows Build; Trio of new ETFs will buy shares of crypto-involved companies; Investors have been pulling back from spot Bitcoin ETFs
Katie Greifeld - Bloomberg
State Street Global Advisors and Galaxy Asset Management are launching a trio of cryptocurrency-focused exchange-traded funds even as investors pull back from spot Bitcoin funds. The SPDR Galaxy Digital Asset Ecosystem ETF (ticker DECO), the SPDR Galaxy Hedged Digital Asset Ecosystem ETF (HECO) and the SPDR Galaxy Transformative Tech Accelerators ETF (TEKX) begin trading on Tuesday, according to a statement.
/jlne.ws/3ZkZNwB
Global ETF flows on course to soar past previous records; Investors shrugged off market ructions and ignored the usual summer lull to pour $130bn into exchange traded funds
Steve Johnson - Financial Times
Global inflows into exchange traded funds are on course to surge to new record highs this year, as market volatility and a summer lull failed to damp buying in August.
Investors poured a net $129.7bn into ETFs in August, according to data from BlackRock.
/jlne.ws/3AWeCvE
Bridgewater Nears Deal for First NYC Offices; Hedge fund firm is expanding beyond Connecticut headquarters
Natalie Wong and Katherine Burton - Bloomberg
Bridgewater Associates is close to a deal to lease office space in Manhattan, its first US office outside of its headquarters in Westport, Connecticut. The hedge fund firm is planning to take space at 295 Fifth Ave., located between 31st and 30th streets, according to people familiar with the matter. The deal hasn't closed, the people said, asking not to be named citing private discussions.
/jlne.ws/4gjxZPo
| | | | | | Exchanges | | | Cboe to Launch New Cboe S&P 500 Variance Futures on Monday, September 23; New exchange-traded solution designed to hedge against and capitalize on U.S. equity market volatility moves
Cboe
As investors continue to navigate an uncertain macroeconomic environment, the new Cboe S&P 500 Variance Futures will aim to provide market participants with an additional tool to calculate implied volatility of the U.S. equity market as measured by the S&P 500 Index, and to manage volatility risks and express directional views. The futures are designed to offer a streamlined approach to trading the spread between implied and realized volatility, enabling market participants to take advantage of discrepancies between market expectations and actual outcomes.
/jlne.ws/4e0kx1b
Cboe to 'Unleash' Growth Once Tech Migrations are Complete
Shanny Basar - Traders Magazine
Cboe Global Markets is due to complete the last of the migrations from its recent acquisitions to a common technology platform in the first quarter of 2025, which chief executive Fredric Tomczyk said will unleash growth.
Tomczyk is approaching the one-year anniversary of his appointment as chief executive. Cboe said in a statement on 19 September 2023 that Tomczyk would become chief executive with immediate effect. He was previously on the board of Cboe Global Markets and a former president and chief executive of financial services group TD Ameritrade.
/jlne.ws/4e0BJUc
ICE's Global Natural Gas Markets Reach Record Liquidity
Intercontinental Exchange, Inc.
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, today announced record liquidity across its global natural gas futures markets including record open interest (OI) in U.S. Financial Gas futures and options markets and record OI in TTF futures. On August 27, 2024, ICE's global natural gas futures markets reached record OI of 22.4 million contracts, up 15% year-over-year (y/y). In North America, ICE's U.S. Financial Gas futures and options markets hit a series of OI records in August and September including a record 11.7 million contracts on September 3, 2024, up 13% y/y. ICE's U.S. Financial Gas markets cover 70 hubs across North America allowing customers to manage regional supply and demand dynamics. Henry Hub markets, the U.S. natural gas benchmark, continues to see strong OI figures, up 26% y/y.
/jlne.ws/3Zktuhn
MIAX volumes slip in August despite latest exchange launch
Gregory Rosenvinge - FOW
Miami International Holdings (MIH) has reported a 5% year-over-year decrease in total options volume across its four MIAX exchanges in August, including initial trading volume of MIAX Sapphire, which launched last month.
/jlne.ws/4dPe7C1
Eurex streamlines off-book EFP-financial trade approvals in Fixed Income Futures
Eurex
Eurex extends its auto-approval functionality for off-book trading to EFP-financials trades for Fixed Income Futures in its latest joint efforts with Tradeweb to improve efficiency of fixed income derivatives business. Exchange for physicals (EFPs) trades may involve the simultaneous purchase and sale of futures and a cash market security. Eurex allows EFPs for its Fixed Income Futures versus securities that show a price correlation such that the futures are an appropriate hedge instrument for these transactions.
/jlne.ws/4d3sEJh
ASX Names Clarke Chair as Roche Retires Amid Tech Upgrade Woes; David Clarke to start on October 28, Damian Roche to retire; ASX is facing regulatory scrutiny on key tech platform upgrade
Adam Haigh - Bloomberg
David Clarke will become chair at ASX Ltd., the operator of Australia's main equities and derivatives exchange that's battled with a years-long upgrade of its clearing and settlement technology system. Clarke assumes the role on Oct. 28, when current chair Damian Roche will retire, according to a statement Wednesday. Clarke has held senior roles at Westpac Banking Corp. and ran Investec Bank (Australia) Ltd. earlier in his career. He's currently also chair of Charter Hall Group. The length of Roche's tenure at the firm had been in question in recent months. ASX is being sued by the securities regulator for misleading statements relating to a costly overhaul of a key system that's hit a number of snags in recent years.
/jlne.ws/3ZmlLzo
| | | | | | Technology | | | Digital Vega, CME Group Launch FX Options Block Trading Service
Traders Magazine
Digital Vega, the leading FX Options e-trading platform and provider of FX Options trading solutions, and CME Group, the world's leading derivatives marketplace, today announced the launch of a new FX options block trading service. Currently available for client testing, buy-side firms will be able to use existing OTC workflows on Digital Vega's multi-bank platform Medusa to request quotes and trade blocks of FX options on futures.
Market participants will be able to leverage Digital Vega's established connectivity, GUI and workflow technology to request prices in CME Group's centrally cleared FX options from multiple Liquidity Providers in competition. These options can be significantly more margin efficient versus traditional OTC options for those subject to Uncleared Margin Rules.
/jlne.ws/3TpTWCl
| | | | | | Strategy | | | Trump Media Option Costs Soar With Election, Lockup End Looming
David Marino - Bloomberg
The cost of options on shares of Donald Trump's media company has surged to the most expensive since it first started trading in March as traders brace for election-related volatility and the end of a lockup period on insider sales.
The implied volatility for Trump Media & Technology Group Corp. options expiring in three months is double the level back in mid-June. Translated to dollars and cents, it would take about a $15 move in the shares to make money from buying a December call and put around the current $18.63 share price.
| | | | | | Miscellaneous | | | The market is acting like Harris won last night's debate against Trump
Matthew Fox - Markets Insider
The first presidential debate between Kamala Harris and Donald Trump is over, and markets have named the winner.
Following Tuesday night's debate, markets are showing signs that the vice president came out on top, with investors voting with their portfolios and selling assets tied to the so-called Trump trade.
/jlne.ws/3zgKudW
| | | | |  | | | | JLN Options is sponsored by: | | | | | |  |  |  |  |  | | | | | |  |  | | |
|
|
| | | |
| | | | 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
| | |
|
|
| |
Disclaimer: All John Lothian Newsletters, JohnLothianNews.com, MarketsWiki.com and MarketsReformWiki.com are products of John Lothian News, a division of John J. Lothian & Company, Inc. The opinions expressed in all John J. Lothian & Company, Inc. publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers. Futures and options trading involve risk. Past results are no indication of future performance. Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any website or newsletter content.
© 2023 John J. Lothian & Company, Inc. All Rights Reserved. |
|
|
