| January 17, 2019 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | John C. Bogle, Founder of Financial Giant Vanguard, Is Dead at 89; John C. Bogle in 2017. He built the Vanguard Group on the belief that over the long term, most investment managers cannot outperform the broad market averages.
Edward Wyatt - NY Times
John C. Bogle, who founded the Vanguard Group of Investment Companies in 1974 and built it into a giant mutual fund company, with $4.9 trillion in assets under management today, died on Wednesday at his home in Bryn Mawr, Pa. He was 89.
/nyti.ms/2RxgBid
| | | | | | Lead Stories | | | Volatility Hedge Funds Hit by Market Horrors in All Directions
Yakob Peterseil - Bloomberg (SUBSCRIPTION)
Some of the nimblest hedge-funds that trade volatility are hoping history doesn't repeat after suffering their worst year in over a decade.
Managers famed for posting steady profits from relative-value strategies, which shuffle between long- and short-volatility bets, lost a record 2.5 percent in 2018, according to Cboe Eurekahedge data.
/bloom.bg/2DeZ7i2
JPMorgan's Kolanovic Says Volatility-Sensitive Buyers Are Back
Luke Kawa - Bloomberg (SUBSCRIPTION)
The semblance of equity market calm after December's dramatic swings is turning funds that take their cues from volatility into buyers once again.
JPMorgan Chase & Co. quantitative analyst Marko Kolanovic wrote in a note Wednesday with global quantitative and derivatives strategist Bram Kaplan that volatility-linked strategies are adding $1 billion to stocks each day. That amount will increase if market gyrations stay more placid, according to the analysts.
/bloom.bg/2DgdT8d
Better later: FX options signal more pound strength on Brexit delay signs
Richard Pace and Sujata Rao - Reuters
Hard Brexit, soft Brexit, no Brexit - or maybe just later Brexit?
Currency options markets appear to signal an increasing bias towards bets that Britain will extend its deadline to leave the European Union, a move seen as bullish for sterling over the short term at least.
/reut.rs/2DgHXjO
Libor's Heir Hindered by Repo Volatility in Battle of Benchmarks
Alex Harris - Bloomberg (SUBSCRIPTION)
The benchmark being eyed as a potential replacement for dollar Libor is facing renewed scrutiny after a year-end surge in the market underpinning the new rate. With more volatility possible, Wall Street is increasingly wondering if the nascent Secured Overnight Financing Rate will be up to the task.
/bloom.bg/2DfsikN
U.S. Economic Expectations Drop to Two-Year Low Amid Shutdown
Investing.com
U.S. consumers this month were the most downbeat on the economy since November 2016, a third straight drop after expectations reached a 16-year high just three months earlier, as the partial government shutdown wears on toward a fourth week.
bit.ly/2DgQC5W
| | | | | | Exchanges and Clearing | | | SocGen Said to Mull Shutting $4.7 Billion Prop-Trading Unit
Fabio Benedetti Valentini, Donal Griffin and Stefania Spezzati - Bloomberg (SUBSCRIPTION)
Societe Generale SA is considering closing its proprietary-trading unit, people familiar with the matter said, a week after French rival BNP Paribas SA decided to shut its operation.
SocGen executives are reviewing the future of the Descartes Trading division, which makes risky bets with its shareholders' funds, said the people, who requested anonymity as the details are private. The bank may decide to close the unit as the business has struggled to make profits, the people said.
/bloom.bg/2DgLRte
Eurex Exchange's Quarterly Equity Derivatives Highlights
Eurex Exchange
In June 2018, Eurex introduced Eurex EnLight, the Request for Quote ("RfQ") service for the Swiss equity & index options segment. More than 250 requests have since been sent with a conversion rate of 50 percent. Overall, 125 deals have been agreed upon.
Eurex continually seeks to expand and improve its Eurex EnLight offering by introducing services such as the working delta negotiation in the March 2019 release and soon the expansion of further product segments on Eurex EnLight will be communicated.
bit.ly/2RyWDUr
European energy bourse EEX saw record power futures, CO2 trades in 2018
Vera Eckert - Reuters
Trading of electricity futures and carbon emissions rights on the European energy bourse EEX rose to record levels last year, while the exchange also expanded globally, it said on Thursday. Leipzig-based EEX, part of Deutsche Boerse group, said its flagship power derivatives markets saw volumes rise by 36 percent to 4,385.5 terawatt hours (TWh), within which European futures increased by 19 percent.
/reut.rs/2DgTxvG
| | | | | | Regulation & Enforcement | | | Shutdown is starting to hurt Trump's financial deregulation agenda
Reuters
The U.S. government shutdown over President Donald Trump's call for Congress to fund a wall he promised to build on the U.S.- Mexican border is threatening another campaign pledge to make rules easier to navigate for banks and corporations.
The partial shutdown, sparked by a standoff between Democrats and Republicans over how to address Trump's demand, is already the longest ever, entering its 27th day on Thursday with no signs of a resolution.
/reut.rs/2DgP8c6
| | | | | | Technology | | | TriOptima Launches triCalculate IM Analytics Tool for Initial Margin Compliance
CME Group
TriOptima, a leading infrastructure service that lowers costs and mitigates risk in OTC derivatives markets, today announced that it has launched triCalculate IM Analytics which provides crucial insight into the options for initial margin (IM) calculation, helps with the identification and prioritization of in-scope counterparties and aids trading decisions to reduce future IM costs.
bit.ly/2RAK1fB
Commodity Research Bureau (CRB) is now cmdty by Barchart
cmdty
Barchart announces the transition of the Commodity Research Bureau ("CRB") - the world's leading commodities and futures research, data and analysis firm - to the cmdty by Barchart product line. Since 1934, CRB has been trusted by commodity traders worldwide to provide them with reliable data products, publications, fundamental data services, and rich historical data on commodities. All of this content will now be made available via cmdty and its innovative line of products across Data, Indexes, Trading, and Solutions.
bit.ly/2FGGuVW
| | | | | | Strategy | | | A new fear takes hold in the market  missing out on the gains
Bob Pisani - CNBC
The markets have a new fear: FOMO.
In the past few days, as we have reached the heart of earnings season, the markets have again resumed their upward drift. In discussions with traders, there is a new fear on the Street. It is not fear of the government shutdown. It is not fear of a continuation of the tariff war. It is not fear of a China slowdown getting worse.
None of those concerns have disappeared. But there has been a new one added to the top of the list: Fear of missing out  FOMO  on the rally.
/cnb.cx/2DgJAhM
The stockmarket fear index: All noise or a buying opportunity?
Jemma Jackson - Interactive Investor
With plenty of catalysts driving volatility across financial markets, we discuss whether investors should take the ultimate fear index seriously.
19 January will mark the 26th anniversary since the VIX index started publishing live prices. Launched by the Chicago Board of Exchange (CBOE), it is still considered to be the ultimate barometer of global equity market fear, and is designed to reflect investors' view of stockmarket volatility for 30 days ahead.
bit.ly/2Diux75
The Volatility Crush!
Davin Blythe - Nadex
Yesterday, the S&P 500 futures made its highest close in over a month, and bulls are beginning to show some resiliency while bears seem to have lost some energy.
We had been looking for a modest pullback to buy on the mid-month rebalance just ahead of earnings; however, the pullbacks were much shallower than we anticipated. With the S&P 500 up more than 12% from the low it made the day after Christmas, right now it's difficult to buy on a frame any longer than a day trade. On the other hand, as firm as equities have been, it's also difficult to short.
bit.ly/2DgKMBC
| | | | | | Miscellaneous | | | Morgan Stanley Earnings Fall Short As Trading Hampers Results
Liz Hoffman - WSJ (SUBSCRIPTION)
Morgan Stanley's fourth-quarter profit fell short of Wall Street expectations, as a rise in corporate deal making failed to compensate for a big trading stumble in a volatile market.
/on.wsj.com/2RAPF16
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