| August 02, 2024 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |  Former ABN AMRO Executive Mike Dennis Discusses Market Trends and Opportunities in Crypto and Fixed Income at Options Conference JohnLothianNews.com In the picturesque setting of Asheville, North Carolina, the Options Conference became a stage for industry insights as Mike Dennis, now a former ABN AMRO executive, shared his perspectives on the evolving landscape of financial markets. In an interview with John Lothian News, part of the JLN Industry Leader video series sponsored by OCC, Dennis, now an executive with the CME Group, offered a candid look at the trends shaping the industry. Watch the video »  Flextrade VP Rob Brogan Discusses AI, Zero-day Options, and Algo Innovations at Options Conference Watch Video »  Unlocking Market Potential: Frank Somma Discusses SIX Clearing's Innovative Solutions and T+1 Impact Watch Video »
| | | | | | Lead Stories | | | Volatility-linked funds dump US stocks, exacerbating selloff
Saqib Iqbal Ahmed - Reuters
A sharp drop in U.S. stocks is provoking selling from volatility-sensitive funds, exacerbating a selloff that has already brought the Nasdaq Composite (.IXIC), opens new tab into correction territory. Volatility control funds - systematic investment strategies that typically buy equities when markets are calm and sell when they grow turbulent - have gorged on stocks as indexes soared to record highs in 2024.
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Vix surges to 15-month high as jobs report spark recession worries
Yasin Ebrahim - Investing.com
The VIX, or "fear index", has rallied to levels not seen since in 15 months as Friday's jobs report put recession fears front and center, forcing traders take cover amid a sea of red washed over Wall Street.
The S&P 500 VIX Futures jumped to 29.60 before easing to 25.02, hitting its highest level since March 2023.
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Market Unease Sends 'Fear Gauge' to Highest Since 2022
Chelsey Dulaney - The Wall Street Journal
Wall Street's "fear gauge" jumped Friday as concerns about the strength of the U.S. economy and the unwinding of artificial-intelligence bets rocked global markets.
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Wall Street 'fear gauge' jumps to three-month high as stocks resume slide
Reuters
Wall Street's most watched gauge of investor anxiety jumped to a more than three-month high on Thursday as U.S. stocks fell sharply after a round of data on Thursday spurred concerns the economy may be slowing faster than anticipated.
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Cboe targets international demand for US options growth
Radi Khasawneh - FOW
The chief executive of Cboe Global Markets has cited a "growing opportunity" for the exchange as it expects more demand from international investors for its US options products.
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Stocks Sell Off a Day After Furious Rally as Volatility Returns; Equities give back most of Tuesday's gains as tech falters; Risks include economic weakness, Fed being too late with cuts
Alexandra Semenova, Esha Dey, Carmen Reinicke, and Natalia Kniazhevich - Bloomberg
Investors hoping for a quiet summer are being sorely disappointed as turbulence pummels the stock market, spurring outsized swings in US equity indexes with the dog days of August now upon us. A spike in realized volatility and a massive rush to the safety of US government bonds turned a busy week into a frantic one for traders trying to wrap their arms around the Federal Reserve's plans for interest rates after it signaled a rate cut could be coming soon. The yield on 10-year Treasuries fell below 4% to its lowest level since Feb. 1 as markets anticipate a sharp reduction in borrowing costs before long.
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Federal Reserve under fire as slowing jobs market fans fears of recession; US central bank's decision to hold interest rates at 23-year high criticised by economists and politicians
Colby Smith - Financial Times
A sharper than expected fall in US jobs growth in July has raised concerns that the Federal Reserve is moving too slowly to lower borrowing costs for Americans, risking the very recession it has been trying to avoid.
The employment report released on Friday showed companies added 114,000 positions across the world's largest economy last month, significantly lower than the 215,000 average gain over the past 12 months.
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Elliott says Nvidia is in a 'bubble' and AI is 'overhyped'; Hedge fund tells clients many supposed applications of the technology are 'never going to actually work'
Laurence Fletcher and Costas Mourselas - Financial Times
Hedge fund Elliott Management has told investors that Nvidia is in a "bubble", and the artificial intelligence technology driving the chipmaking giant's share price is "overhyped". The Florida-based firm, which manages about $70bn in assets, said in a recent letter to clients that the megacap technology stocks, particularly Nvidia, were in "bubble land" and it was "sceptical" that Big Tech companies would keep buying the chipmaker's graphics processing units in such high volumes.
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Frenzied options trading offers minimal benefits: Sebi's Ananth Narayan; Sebi's Ananth Narayan G has flagged concerns over the chaotic trading in index options on expiry days, saying it offers minimal benefits. Sebi's consultation paper emphasizes the need for a balanced approach to ensure systemic stability and effective capital formation.
Neha Joshi - Mint
The Securities and Exchange Board of India (Sebi) is aware of the crucial role of derivative markets in capital formation. However, the chaotic surge in index options trading on expiry dates offers minimal benefits, according to whole-time member Ananth Narayan G.
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Cboe Sells Chicago Ex-Headquarters at Half of Pre-Pandemic Value;
Building in Chicago's financial center hit the market in 2019; Buyer is developer working on new Google office in the city
Miranda Davis - Bloomberg
Options powerhouse Cboe Global Markets Inc. has sold its former headquarters in the heart of Chicago's financial center for about half of its pre-pandemic value.
The property on the LaSalle Street corridor changed hands for $12 million, 43% below its value at the end of 2019, when it first hit the market, according to county property records. The Prime Group, the developer behind Google's new office in Chicago, was the buyer.
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| | | | | | Exchanges | | | Cboe Global Markets Reports Results for Second Quarter 2024
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE) today reported financial results for the second quarter of 2024. "Cboe reported another strong quarter with record net revenue of $514 million, diluted EPS of $1.33, and adjusted diluted EPS1 of $2.15, up a robust 21% from the second quarter of 2023," said Fredric Tomczyk, Cboe Global Markets Chief Executive Officer. "The second quarter results illustrate the durability of the Cboe business model with year-to-date net revenue increasing by a strong 8% and adjusted diluted EPS1 coming in 17% higher as compared to first half 2023 levels. I am incredibly pleased with the progress we continue to make as we work through our strategic review, the early output of which is evidenced by our solid expense management trends, improved year-over-year EBITDA margins, and additive capital allocation actions with $90 million of share repurchases during the second quarter and a total of $180 million for the first half of the year. Each component of our exchange ecosystem performed well during the second quarter, and we are well positioned for the second half of the year."
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CME Group Reports Record July ADV of 24.8 Million Contracts, with Growth in All Asset Classes and Record Interest Rate ADV of Nearly 12 Million Contracts
CME Group
CME Group, the world's leading derivatives marketplace, today reported its July 2024 market statistics set a new July average daily volume (ADV) record of 24.8 million contracts, up 24% from July 2023. The company's interest rate, equity index, metals, agricultural and options products also reached July ADV records, while its deeply liquid U.S. Treasury complex hit a new July volume record of 6.6 million contracts. Market statistics are available in greater detail at https://cmegroupinc.gcs-web.com/monthly-volume.
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Cash market trading volumes in July 2024
Deutsche Boerse
Deutsche Borse's cash markets generated a turnover of EUR 101.80 billion in July (previous year: EUR88.93 billion / previous month: EUR106.75 billion). EUR98.60 billion were attributable to Xetra (previous year: EUR86.17 billion / previous month: EUR103.49 billion), bringing the average daily Xetra trading volume to EUR4.29 billion (previous year: EUR4.10 billion / previous month: EUR5.17 billion). Trading volumes on Borse Frankfurt were EUR3.21 billion (previous year: EUR2.76 billion / previous month: EUR3.25 billion).
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SIX Exchanges Figures: July 2024
BME
SIX publishes the monthly key figures for SIX Swiss Exchange and BME Exchange about the trading and listing activity in Switzerland and Spain.
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| | | | | | Regulation & Enforcement | | | Short-Seller Left's Deleted Tweets Reappear in Fraud Case; Tweets used to deceive investors about Left's views, US says; Left has pleaded not guilty to securities fraud in Los Angeles
Erik Larson - Bloomberg
Embattled short seller Andrew Left deleted his research firm's entire tweet history last year to fend off what he described at the time as "class-action attorneys and trolls" looking for dirt in his past stock commentary.
Dozens of deleted tweets are now front and center in the US Justice Department's indictment accusing Left of manipulating the market to benefit his own trading and lying to investigators.
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| | | | | | Moves | | | Financial Services Litigator Stacie Hartman Joins Morgan Lewis's Chicago Office
Morgan Lewis
Morgan Lewis has added veteran trial lawyer and litigator Stacie Hartman to deepen the firm's investment management and disputes capabilities. Stacie represents clients in regulatory and other government investigations and complex litigation focusing on financial markets and the financial services industry. She will also continue her group leadership by taking on a leadership position in the firm's multidisciplinary derivatives and commodities practice. Stacie joins today from another international law firm, where she served as the financial services group chair.
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| | | | | | Strategy | | | Demand For Options
Cboe (Video)
Watch #Vol411 where Dan Deming @Djd551 covers shifting implied volatility expectations, a 'bumpy,' backwardated VIX futures curve and more.
/jlne.ws/4ccvdrK
| | | | | | Miscellaneous | | | Kamala Harris' Popularity And Hints of a Rate Cut Are Hurting 'Trump Trades'; Recent polling shows Kamala Harris gaining in battlegrounds; Bond rally, stalled dollar suggest easing of Trump-related bet
Tania Chen, Winnie Hsu, and Carter Johnson - Bloomberg
The surging popularity of Kamala Harris in US election polls and soaring odds the Federal Reserve will soon start cutting interest rates is dealing a double-blow to the so-called Trump trades. In the 11 days since President Joe Biden declared he wouldn't seek a second term and Democrats united behind the candidacy of Vice President Harris, strategies seen benefiting from a win by Donald Trump have lost steam. The dollar has stagnated, Treasuries have rallied and Bitcoin has slid.
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