| September 10, 2024 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | |
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STA President Reflects on Market Structure Changes and Industry Challenges
JohnLothianNews.com
As the financial industry grapples with a flurry of regulatory proposals and looming political changes, Jim Toes, President and CEO of the Security Traders Association (STA), offered a measured perspective on the road ahead.
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Guy Melamed - Exberry
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Robbert Booij - Eurex
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| | | | | | Lead Stories | | | Volatility, thy name (probably isn't) leveraged ETF; A look at some pesky rebalancing flows
George Steer - Financial Times
Markets have been choppier lately, and once again some people think leveraged ETFs are exacerbating it. After all, even the Bank of England thinks they might be a bit dangerous. Robin might not be blaming them, but he's not a fan either. And he reckons the leveraged Microstrategy ETF launched last month might be the industry's shark-jumping moment. But do leveraged ETFs really have a top-level impact on stock market volatility?
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The Fastest Options Are the Most Fun; 0dtes, K-cups, News Corp., illegal NDAs, USDT and Vy Capital.
Matt Levine - Bloomberg (Opinion)
Some of the work in the financial industry involves finding and fostering bad counterparties. If you are a stock market maker - you buy stock from customers who want to sell, and sell to customers who want to buy - and your customers are mostly huge sophisticated hedge funds, you will have a lot of unpleasant days. They are smart and large; when they buy stock from you, it will mostly go up and you will regret selling; when they sell stock to you, it will mostly go down and you will regret buying.
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World's Top Oil Traders See Boom Years Fade as Volatility Tanks; Shocks from Covid-19, Russia-Ukraine war have diminished; Prices set for narrowest range since 2004 so far this year
Archie Hunter, Devika Krishna Kumar, and Serene Cheong - Bloomberg
The world's top commodity merchants are grappling with a tougher environment for trading oil as seismic market events of the past few years start to lose their impact.
The slowdown is being felt everywhere, from the likes of Glencore Plc and Gunvor Group - where profits are down - to hedge fund boss Pierre Andurand, who ditched oil trades for bets on copper and cocoa. While industry titans are still profitable, these are no longer the blockbuster figures banked since 2020.
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US election is just one risk among many for nervous stock market
Saqib Iqbal Ahmed and Laura Matthews - Reuters
Growing risks to the U.S. stock rally are spurring demand for portfolio hedging, options markets showed, as investors grapple with U.S. economic uncertainty, shifting Federal Reserve policy and a looming presidential election.
As the spotlight turns toward Tuesday's high-stakes televised debate between Democrat Kamala Harris and Republican Donald Trump, the Cboe Volatility Index (.VIX) is hovering around 20. That compares with a 2024 average of 14.8 for the index, which measures demand for protection against stock swings.
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Bitcoin ETFs lost $1.2 billion in 8 days as markets swing amid latest economic data
Kelly Cloonan - Markets Insider
Bitcoin ETFs saw the longest stretch of outflows last week since they debuted in January, as investors digested signals that the US economy was slowing.
Bitcoin ETFs saw net outflows for eight straight days through September 6, according to Bloomberg data, which amounts to $1.2 billion of flows out of bitcoin funds.
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The 'great wait' economy is here, and it's confusing investors; Companies and consumers are in wait-and-see mode, says Ritholtz's Callie Cox, leaving investors to overreact to every data point
Joseph Adinolfi - MarketWatch
Investors are facing an old problem with a new spin: nobody really knows where the U.S. economy is headed. In fact, economists and market watchers can hardly agree on where things stand right now.
Faced with so much uncertainty, consumers and corporations are opting to sit on their hands and wait until they have a better idea about how deeply the Federal Reserve might cut interest rates in the coming months, and what effect their changing policy might have on the economy.
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| | | | | | Exchanges | | | Digital Vega and CME Group launch new FX options block trading service; Service will enable buy-side participants to use existing OTC workflows on Digital Vega's multi-bank platform to request quotes and trade blocks of FX options on futures.
Wesley Bray - The Trade
FX options e-trading platform Digital Vega and CME Group have launched a new FX options block trading service. The new offering will allow buy-side participants to use existing OTC workflows on Digital Vega's multi-bank platform Medusa to request quotes and trade blocks of FX options on futures.
/jlne.ws/47nSCFR
Miami International Holdings Reports Trading Results for August 2024; YTD Volumes Reach Record Levels on MIAX Options, MIAX Emerald and MIAX Pearl Equities Exchanges
MIAX
Miami International Holdings, Inc. (MIH), a technology-driven leader in building and operating regulated financial markets across multiple asset classes, today reported August 2024 trading results for its U.S. exchange subsidiaries - MIAX, MIAX Pearl, MIAX Emerald, and MIAX Sapphire (collectively, the MIAX Exchange Group), and Minneapolis Grain Exchange (MGEX).
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Nodal Exchange to Launch New Carbon and REC Contracts in Collaboration with IncubEx
Nodal Exchange
The Alberta Technology Innovation and Emissions Reduction (TIER) Emission Performance Credits (EPC) futures contract physically delivers credits issued to obligated entities for the difference between their allocated and reported emissions for the compliance period. Nodal also plans to list a set of new REC futures products that complement its current broad portfolio of REC futures and options.
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| | | | | | Regulation & Enforcement | | | Federal Court Orders Israeli Man to Disgorge $7 Million in Gains from Fraudulent Binary Options Scheme
CFTC
The Commodity Futures Trading Commission today announced the United States District Court for the Northern District of Illinois entered a consent order requiring Yakov Cohen to disgorge $7 million in ill-gotten gains received from his participation in a fraudulent binary options scheme. The order resolves the allegations against Cohen in the CFTC's August 12, 2019 lawsuit against Cohen and co-defendants Yossi Herzog, Lee Elbaz, Shalom Peretz, Yukom Communications Ltd., Linkopia Mauritius Ltd., Wirestech Limited d/b/a BigOption, WSB Investments Ltd., d/b/a BinaryBook, and Zolarex Ltd, d/b/a BinaryOnline. [See CFTC Press Release No. 7995-19] The lawsuit is pending against the co-defendants.
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| | | | | | Technology | | | Advantage Futures migrates to ION's XTP; ION's cleared derivatives trade processing platform,âEUR¯XTP, offers real-time, post-trade capabilities; the onboarding of Advantage Futures to the platform was completed in record time.
Claudia Preece - The Trade
High volume futures commission merchant (FCM), Advantage Futures, has become the latest to migrate its legacy back-office solution to ION's cleared derivatives trade processing platform,âEUR¯XTP. The move comes as the FCM sought a solution which could provide extensive automation across clearing and settlement workflows.
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| | | | | | Strategy | | | 'Don't buy the tech dip:' Where to invest instead as the market gets more volatile, BofA says
Filip De Mott - Markets Insider
The market is getting more volatile, and stocks will stay choppy for years ahead, according to Bank of America.
The firm says that in the near term, election-related policy uncertainty will keep the market swinging. Looking further out through the end of 2027, the yield curve is signaling more volatility ahead, as shown by the chart below:
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| | | | | | Miscellaneous | | | Here's What the Harris-Trump Showdown Means for US Stocks
Esha Dey - Bloomberg
In this Year of Many Elections, the big one - the US presidency - is just two months away. And the pivotal moment in the race yet, a presidential debate between Vice President Kamala Harris and former President and Republican nominee Donald Trump, is Tuesday, Sept. 10.
For Wall Street, the faceoff may add another layer of volatility at a time when uncertainty around the labor market, interest rates and geopolitics is fraying investor nerves. The S&P 500 Index just clocked its worst week since March 2023 as another disappointing report on the US jobs data revived concerns that the economy is cooling, before rebounding on Monday.
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