| February 25, 2022 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Wall St flocks to cheap options for protection
Jamie McGeever - Reuters
At the start of the year, the notion that investors would be scrambling to protect themselves from a bear market on Wall Street was unlikely, fanciful even. Now? Not so much.
"Out-of-the-money" options activity suggests that is exactly what investors have done recently amid the swirl of volatility kicked up by fears over higher U.S. and global interest rates, and rising tension between Russia and Ukraine.
/jlne.ws/3BPX4O6
Ukraine invasion sends volumes surging on Chicago's commodity exchanges; Prices gyrated for key commodities like oil and gas, as well as agricultural staples, while CBOE's volatility index was set to record twice the normal daily volume.
Steve Daniels - Crain's Chicago Business
Trading volume at Chicago's futures and options firms were set to blast through highs not seen for two years as bets and hedges were placed on natural gas, oil, wheat and other staples. Not surprisingly, CBOE Global Markets and CME Group didn't see the major stock hits that banks and other financial services players suffered from Russia's Ukraine invasion.
/jlne.ws/3t8OpCi
Dow futures drop 260 points after stunning rebound, while global stocks edge higher as Russia-Ukraine conflict roils markets
Harry Robertson - Business Insider
US stock futures fell Friday as uncertainty about the Russia-Ukraine conflict continued to grip investors, a day after equities staged a remarkable comeback despite the outbreak of war.
Dow Jones futures were 260 points or 0.78% lower, while SP 500 futures had fallen 0.85% and Nasdaq 100 futures were down 0.9%.
However, Asian and European stocks rebounded after sharp falls on Thursday, as global volatility cooled somewhat following wild trading the previous day.
/jlne.ws/3t8cKbw
Russia's invasion of Ukraine could keep stocks sliding for weeks before the market hits bottom
Mark Hulbert - MarketWatch
U.S. stocks staged an impressive reversal on Feb. 24 â including a 950-point intraday move to the upside for the Dow Jones Industrial Average DJIA, 2.39% â but there's too much eagerness to declare that the U.S. market has bottomed.
/jlne.ws/3hmSrkU
Truckers Face Further Fuel Price Increases on Crude Markets Volatility
Lydia O'Neal - WSJ
Trucking companies already coping with higher fuel costs are bracing for further increases in prices for diesel as Russia's invasion of Ukraine roils energy markets, sending crude oil prices surging above $100 a barrel.
Average diesel prices across the U.S. have jumped more than 44 cents a gallon since the start of the year, according to the U.S. Energy Information Administration, and the national average price of $4.055 a gallon for the week ended Feb. 21 was the highest level since March 2013.
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JPMorgan reviewing impact on its indexes of U.S. sanctions on Russian debt -source
Reuters
JPMorgan (JPM.N) is reviewing the impact that newly imposed U.S. sanctions on Russian sovereign debt may have on its emerging market bond indexes, a source familiar with the matter said.
The U.S. government broadened restrictions on trading of Russian government debt on Tuesday in a bid to punish Moscow for ratcheting up its conflict with Ukraine.
/jlne.ws/3sj4FS8
| | | | | | Exchanges | | | Meeting Global and Retail Participant Needs Through Market Evolution
Cboe
In 2021, Cboe introduced early trading during the 4:00 a.m. to 7:00 a.m. trading session on its EDGX Equities Exchange to meet global customers' growing need to trade U.S. securities in their own time zones.1 Since then, we have observed continued interest in trading outside of the regular U.S. market hours. To fully understand this evolution, Cboe's North American Equities Execution Consulting team analyzed volume and price trends in pre-market and after-hours trading sessions. For consistency, we'll be using the U.S. Eastern time zone throughout this piece.
/jlne.ws/3BS7NHD
Crypto exchange Coinbase's trading volumes surge on retail interest
Reuters
U.S. cryptocurrency exchange Coinbase Global Inc on Thursday reported a surge in quarterly trading volumes on a sequential basis as volatility in prices drew in retail traders, but warned that growth would slow in the current quarter. Trading volumes jumped more than 67% to $547 billion in the quarter ended Dec. 31, with retail trading accounting for 32% of volumes and crypto assets contributing 68% to total trading.
/jlne.ws/3JReZH0
| | | | | | Regulation & Enforcement | | | Short-Seller Hedge Funds Face New SEC Disclosure Rules
Benjamin Bain - Bloomberg
Hedge funds and other large investors would have to disclose significantly more information about the stocks they short under a new plan from the Securities and Exchange Commission.
Institutional money managers would have to submit monthly filings with details on large equity short positions, according to a proposal released by the agency Friday. Investors would also have to disclose some daily activity affecting their bets. While most of these details would remain confidential, the SEC wants to make some aggregate data about large positions in specific securities available to the public.
/jlne.ws/3pcKIuj
CFTC Charges Golden Signals For Binary Options Scam; Golden Signals claimed Richard D. Neal had "been consistently winning with one of the highest profit percentage ratings in the world"
Rick Steves - Financefeeds
The Commodity Futures Trading Commission has charged Richard D. Neal and his company Golden Signals LLC for engaging in fraudulent solicitations for binary options signals, trainings, and strategy course offerings. Neal allegedly acted as a commodity trading advisor (CTA) and commodity pool operator (CPO), while not registered to act as such, and advertised without making disclosures required by CFTC regulations.
/jlne.ws/3haNtb8
BitMEX Founders Plead Guilty to Anti-Money-Laundering Violations; Arthur Hayes and Benjamin Delo, co-founders of cryptocurrency derivatives exchange BitMEX, entered pleas in New York
Richard Vanderford - WSJ
Two of the co-founders of cryptocurrency derivatives exchange BitMEX have pleaded guilty to violating U.S. anti-money-laundering law and agreed to each pay a $10 million fine. Arthur Hayes and Benjamin Delo admitted to violating the Bank Secrecy Act's anti-money-laundering provisions during a hearing Thursday in New York federal court. Both men entered the pleas after reaching agreements with prosecutors.
/jlne.ws/3t5X8Fr
| | | | | | Strategy | | | Stocks Staged a Huge Turnaround. Markets Now Have a Problem.
Barron's
Markets staged an astonishing turnaround on Thursday, given the circumstances.
The Dow Jones Industrial Average was 850 points lower at one point early in the day, after Russia launched an invasion of Ukraine, but managed to close 92 points up.
The technology-heavy Nasdaq Composite's comeback was even more remarkable, turning a 3.5% loss, and a brief fall into bear market territory, into a 3.3% gain.
The last time the index was down more than 3% at its low but closed more than 3% higher was in November 2008, according to Dow Jones Market Data.
/jlne.ws/3M2yUEv
3 Options Trades to Play Market Volatility
Tyler Craig - InvestorPlace
Thursday's market volatility was nearly unprecedented. It's not every day the Nasdaq opens down over 3% and rallies 7% to close deep in the green. In fact, according to Ryan Detrick of LPL Financial, the only other time we've seen such a wicked reversal was in April 2000. If the whipsaw has your head spinning, you're in good company. Fortunately, some options trades allow you to capitalize on the volatility.
/jlne.ws/3pejxiQ
| | | | | | Miscellaneous | | | Bitcoin donations to Ukrainian military soar as Russia invades
MacKenzie Sigalos - CNBC
Bitcoin donations to the Ukrainian army are soaring after Moscow launched a large-scale offensive against Ukraine early Thursday.
New data from blockchain analytics firm Elliptic shows that over a 12-hour window Thursday, nearly $400,000 in bitcoin was donated to Come Back Alive, a Ukrainian nongovernmental organization providing support to the armed forces.
/jlne.ws/3sks4Cu
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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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