| December 02, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | VIX Falls Below Key Level as Stock Market Volatility Disappears
Divya Balji - Bloomberg
The Cboe Volatility Index extended its decline Thursday, dropping below the key 20 threshold and reaching the lowest level in more than three months as Wall Street appears to be growing increasingly bullish about the stock market's future prospects.
The VIX fell to as low as 19.80 late in Thursday's session and closed at 19.84. The last time it finished lower was Aug. 18, in the heat of the summer rally, when it was regularly trading below 20. It was trading above 33 as recently as Oct. 11.
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**** JB: Also see The Wall Street Journal's article, The VIX, Wall Street's 'Fear Gauge', Marks Three-Month Low.
This Year's Sour Stock Market Made Wall Street Bearish for First Time Since 1999
Lu Wang - Bloomberg
One bad year in the stock market has turned Wall Street strategists into bears after two decades of bullishness.
The average forecast of handicappers tracked by Bloomberg calls for a decline in the S&P 500 next year, the first time the aggregate prediction has been negative since at least 1999. Most of them turned progressively more dour as the worst year in the market since the financial crisis moved toward its end.
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China to launch silicon futures as demand from solar sector surges
Siyi Liu and Dominique Patton - Reuters
China's securities regulator has approved the launch of industrial silicon futures and options contracts on the country's newest exchange, in a move that could help reduce price volatility in the metal used in most of the world's solar panels.
The contract, believed to be the world's first industrial silicon contract, will be listed on the Guangzhou Futures Exchange which was set up last year to focus on so-called new energy materials like lithium and rare earths.
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Oil Rises in Volatile Week as Traders Speculate on OPEC+ Policy
Julia Fanzeres - Bloomberg
Oil was on track for its biggest weekly gain in almost two months, after a volatile week marked by China loosening Covid restrictions and speculation on OPEC+ output policy.
Front-month volatility jumped to 53% earlier this week, the highest since September, with crude trading in a $10 range. Speculation of OPEC+ output cuts sent crude swinging as traders tried to foretell what the cartel might decide over the weekend. Prices got a boost as China, facing extraordinary unrest, began to ease Covid-Zero policies, aiding the outlook for energy consumption.
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| | | | | | Exchanges | | | OCC November 2022 Total Volume Surpasses 922M Contracts, Third Highest Month on Record OCC
OCC, the world's largest equity derivatives clearing organization, announced today that year-to-date average daily volume through November 2022 was 41.3 million contracts, up 4.7 percent compared to year-to-date average daily volume through November 2021. Total volume was 922.4 million contracts, down 2.8 percent compared to November 2021 while ranking as the third highest month in OCC's history.
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CME Group Reports November 2022 Monthly Market Statistics; CME Group Highest-ever November ADV; Record SOFR options volume and OI
CME
CME Group, the world's leading derivatives marketplace, today reported its November 2022 market statistics, showing average daily volume (ADV) increased 1% to 23.5 million contracts during the month, representing the company's highest November volume on record. Market statistics are available in greater detail.
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| | | | | | Regulation & Enforcement | | | Fed banking supervisor eyes 'holistic' review of bank regulations while doubling down on protections they offer
Steve Gelsi - MarketWatch
The Federal Reserve's principal regulator of the banking industry, Michael Barr, on Thursday reiterated plans to study capital requirements and other safeguards to protect lenders and consumers in a downturn, and said more specific proposals from the central bank would come early in 2023.
The U.S. Federal Reserve will soon launch a holistic review of its full range of regulations as part of Barr's effort to adapt the banking system to address emerging risks. That review could include consideration of higher capital requirements, counter-cyclical buffers and other measures, Barr said.
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| | | | | | Moves | | | Christine Reder is starting a new position as associate principal, model risk project management at OCC.
| | | | | | Strategy | | | Interactive Brokers' Stock Looks Poised for Higher Ground. Here's How to Play It.
Steven M. Sears - Barron's
Interactive Brokers Group stock usually fails to attract the attention and respect that it deserves.
The electronic brokerage firm, which offers active investors sophisticated trading tools and low commissions, recently reported third-quarter adjusted earnings per share of $1.08, handily beating the consensus estimate of 96 cents. Net revenue of $847 million set a quarterly record, too, rising 18% quarter over quarter, and 30% year over year.
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Opinion: The S&P 500 is on the cusp of breaking through a level that might spell the end of the bear market
Lawrence G. McMillan - MarketWatch
The stock market has sputtered at times over the past three weeks, but Federal Reserve Chairman Jerome Powell's statements Wednesday prompted the S&P 500 SPX, -0.53% to jump above a technical resistance level at 4030 points.
The benchmark index is now challenging the declining 200-day moving average (MA) and the trend line that defines the bear market. A strong move above 4100 would break that downtrend line for the first time this year, potentially ending the bear market.
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| | | | | | Events | | | FIA and SIFMA AMG will hold their Asset Management Derivatives Forum from February 8-10, 2023 at The Ritz-Carlton Laguna Niguel in Dana Point, California. The forum will explore the latest developments impacting the use of derivatives by asset managers. Key session topics at the 2023 Forum include: Trends in Asset Management Activity; Global Regulatory Developments; SEC & CFTC Derivatives Initiatives; Clearing Capacity and Trends; Pre-trade & Post-trade Operations Issues. You can check out the full schedule, learn more about the sessions, and register here. Register by December 16 for the best rates.~SR
| | | | | | Miscellaneous | | | CME Group Names Winning Teams of 2022 University Trading Challenge
CME Group
CME Group, the world's leading derivatives marketplace, today announced the winners of its 19th annual University Trading Challenge, led by Universidad Anahuac in Mexico, the third consecutive Latin American team to earn top honors in the global competition.
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MarketVoice Podcast - SGX's Loh Boon Chye on the growth of Asia-Pacific derivatives
FIA (Podcast)
Loh Boon Chye, CEO of Singapore Exchange, sat down with FIA President and CEO Walt Lukken to discuss the outlook for Asia-Pacific derivatives markets generally, as well as specific plans that SGX has to capitalize on opportunities in the region.
/jlne.ws/3VtWazH
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