| | | | | | | May 16, 2025 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | | Options Mania: How Henry Schwartz and Cboe Are Riding a Retail-Fueled Trading Wave JohnLothianNews.com PALM BEACH GARDENS, Fla.- (JLN) - May 16, 2025 - If you thought the options market couldn't get any hotter, Henry Schwartz of Cboe Global Markets has news for you. "We're seeing record volume again this year. It will be the sixth year in a row with record option volume," Schwartz said at the Options Conference, eyes wide behind his glasses. "We're averaging about 59 million contracts a day. That's up 20% from last year. We had a day of over 101 million contracts." Watch the Henry Schwartz Video » Paul Humphrey - BMLL Watch the Paul Humphrey Video » Robert Blackwell, Jr. - Quant16 Watch the Robert Blackwell, Jr. Video »
| | | | | | Lead Stories | | | VIX on track for biggest six-week decline on record
Joseph Adinolfi - MarketWatch
After a dramatic spike higher in April, Wall Street's "fear gauge" has been cruising lower for six straight weeks.
According to Dow Jones Market Data, the Cboe Volatility Index, also known as the fear gauge or the VIX, has fallen 61.7% over this period. That's the largest six-week decline on record.
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Jamie Dimon says it would be a 'mistake' to think deescalation from Trump's White House means volatility is over
Eleanor Pringle - Fortune
JPMorgan CEO Jamie Dimon remains cautious about ongoing market volatility driven by geopolitical uncertainty, particularly around U.S. tariff policy, despite recent trade deals with the U.K. and China. While he sees the U.S. as a strong long-term investment, Dimon warns that recession risks and inflationary pressures remain, and believes continued volatility is likely due to unresolved global issues and potential sector-specific tariffs. President Trump's intermediary deals with China and the U.K. have done little to convince Jamie Dimon that market volatility arising out of White House tariff policy is over.
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ETFs in US Gather Record Net Inflows
Traders Magazine
ETFGI, a leading independent research and consultancy firm renowned for its expertise in subscription research, consulting services, events, and ETF TV on global ETF industry trends, reported that the ETFs industry in the US has gathered a record US$360.89 billion of net inflows in the first 4 months of 2025, according to ETFGI's April 2025 US ETFs and ETPs industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
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Smart Money Loses to Retail Crowd That Bet on Stock Rebound
Alexandra Semenova - Bloomberg
President Donald Trump's tariffs announcement on April 2 devastated financial assets, wiping out some $6 trillion in market value from US stocks in just two trading days. Wall Street's "smart money" - hedge funds and other professional investors - dumped equities, and strategists urged clients to flee. But the so-called dumb money, embodied by retail traders, didn't see things that way. To them, the stock market was suddenly on sale, meaning it was time to buy, not hide. And it turns out they were right, as Trump reversed himself a week later and paused most of his levies on April 9, sending the S&P 500 Index soaring 18% since then.
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| | | | | | Exchanges | | | Meet Our Chief Security Officer, Matt Rathbun
OCC
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HKEX Enhances Product Offering With CATL Debut; CATL listed options to be introduced on 20 May
Mondovisione
HKEX informed issuers they can list derivative warrants on CATL shares when the shares debut on HKEX's securities market. CATL shares to be included in Designated Securities Eligible for Short Selling on 20 May. Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Friday) that it will offer investors more product choices on Contemporary Amperex Technology Co., Limited's (CATL, Stock Code: 3750) shares on their trading debut on 20 May 2025.
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Market quality analysis on the French stock options market
Euronext
This analysis focuses on the market quality of the French stock options market, highlighting Euronext's superior market quality with tighter spreads and larger Best Bid and Offer sizes. Euronext demonstrates superior market quality with tighter spreads and larger average Best Bid and Offer (BBO) sizes compared to its competitors. This consistency is observed on first maturities and across different option types - in the money, at the money, and out of the money - with Euronext maintaining better spreads and higher BBO quantities.
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| | | | | | Regulation & Enforcement | | | 100 Days: Keynote Address by Acting Chairman Caroline D. Pham, 39th ISDA Annual General Meeting
CFTC
This year not only marks the 50th anniversary of the CFTC, but it also is the 40th anniversary of ISDA. That is an impressive milestone, outlasting a few key benchmark rates along the way. But beyond the longevity is a legacy of real significance, reflected in the documentation and standards that underpin the global derivatives markets. The centerpiece of ISDA's transformation of derivatives markets is, of course, the ISDA Master Agreement. The years 1992 and 2002 need no introduction-if you know, you know. The ISDA Master is the legal and operational foundation for trillions of dollars in transactions each day. It is no exaggeration to say that standardized ISDA documentation is one of the most important innovations in modern finance. The ISDA Master even made it to Hollywood in the movie The Big Short, featured alongside famous movie stars.
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Coinbase Says It's Cooperating With SEC on User Metrics Probe
Olga Kharif - Bloomberg
Coinbase Global Inc. is cooperating with the US Securities and Exchange Commission on an agency probe into its previously reported user metrics, the company said Thursday. "This is a hold-over investigation from the prior administration about a metric we stopped reporting two and a half years ago, which was fully disclosed to the public," Paul Grewal, Coinbase's chief legal officer, said in a statement. "While we strongly believe this investigation should not continue, we remain committed to working with the SEC to bring this matter to a close."
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Jane Street Index Derivatives Bets Probed by India Regulator
Alex Gabriel Simon and Saikat Das - Bloomberg
India's markets regulator is investigating index derivatives trades by Jane Street Group, people familiar with the matter said, the latest sign of regulatory scrutiny in a market that has generated big gains for high-frequency trading firms but left many retail investors nursing losses.
The Securities & Exchange Board of India is investigating the trades after receiving allegations of potential market manipulation, the people said, asking not to be identified as the information is private. It's unclear whether SEBI's investigation will lead to any findings of wrongdoing.
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| | | | | | Technology | | | Volatile Markets Boost Demand for Data and Analytics
MarketsMedia
Data analytics in capital markets is experiencing a boom within a boom, as a long-term increase in demand converges with a period of extraordinary volatility. JP Morgan's Execute Analytics, a cross-asset data and analytics platform designed to optimize trade execution, recorded its two busiest days in April 2025, with usage running more than 50% higher than average, according to Jessica Hamilton, Vice President at the Wall Street bank.
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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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