| July 13, 2021 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Wall Street charges ahead but some option traders hedge against sharp pullback
Saqib Iqbal Ahmed - Reuters
Even with U.S. stocks scaling record highs day after day and Wall Street's "fear gauge" showing a low level of worry, some corners of the options market indicate investors are growing much more fearful of a sharp pullback than they have been in months.
/reut.rs/3r92xKv
BlackRock Takes Stake in Options Overlay Firm SpiderRock Advisors
Amey Stone - Barron's
With interest rates low and stock prices high, stock options are an increasingly popular way to generate income or protect against downside risk in portfolios. Financial advisors have long wanted an easy way to implement options strategies in client accounts.
Strategies involving the trading of call and put options are time consuming, require constant monitoring, and just aren't scalable across a whole book of business.
/bit.ly/36Atxt0
Big RIA Partners With Community Bank; Preparing for Increase in Client Divorces
Barron's
BlackRock aims to help advisors with customized options strategies. | Summit Trail Advisors lures a big multifamily office team. | A Raymond James hiring spree lures 12 advisors with $2.2 billion in AUM. | See why Kestra is paying $10 million in an SEC settlement. | What's behind the strategy of a $4 billion RIA selling a stake to a community bank? | Advisors are facing an increase in client divorces. Here's how they're protecting financial plans.
/bit.ly/2UNUXJi
Analysis-Wall Street charges ahead but some option traders hedge against sharp pullback
Saqib Iqbal Ahmed - Reuters
Even with U.S. stocks scaling record highs day after day and Wall Street's "fear gauge" showing a low level of worry, some corners of the options market indicate investors are growing much more fearful of a sharp pullback than they have been in months.
The Cboe Volatility Index, known as Wall Street's fear gauge, is back near its post-pandemic lows, showing little investor dread of near-term stock market weakness. But other, less obvious measures are flashing red, indicating concerns that the market could be in for a large drop.
/reut.rs/36Aq6Cl
FTX Joining Copper Technologies ClearLoop Settlement Broadens Crypto Access
Joanna Ossinger - Bloomberg
Cryptocurrency exchange FTX is joining Copper.co's ClearLoop settlement trading network, which will allow it to gain new access to institutional funds.
Copper's client base of more than 300 institutional asset managers will now be able to trade FTX's products -- which include derivatives, options and tokenized stocks -- with their funds secured within Copper's platform, according to a statement from the companies.
/bloom.bg/3i5zPWL
Crypto Derivatives Trading Exceeded Spot in June as Prices Fell
Olga Kharif - Bloomberg
First time monthly derivatives volume exceeded spot this year; Bitcoin price slump helped drive 40%-plus volume drop
More cryptocurrency derivatives were traded in June than actual coins for the first time this year, according to data tracker CryptoCompare. While trading volumes for both the spot and derivatives markets shrank last month by more than 40%, derivatives garnered 53.8% market share in June, compared to 49.4% in May, CryptoCompare said. Derivatives volumes in June was $3.2 trillion while total spot volumes reached $2.7 trillion.
/bloom.bg/3r8FLm8
IEA Warns of Much Tighter Oil Market Unless OPEC+ Boosts Supply
Grant Smith - Bloomberg
Global oil markets are set to "tighten significantly" unless the OPEC+ alliance resolves its standoff and agrees to increase production, the International Energy Agency warned.
Deadlocked by a dispute between Saudi Arabia and the United Arab Emirates, OPEC+ is set to keep output levels unchanged next month even as fuel consumption bounces back from the pandemic and summer driving demand peaks.
/bloom.bg/2U8Xfmb
Vix Adds Its Longest Period Of Falls Of The Decade
The 'Fear Index' reaped its fifth consecutive month of declines in June
Voke Nicloas - Tiebreaker Times
Despite the market scares that have been seen sporadically in the main trading floors of Europe, such as the one registered last Thursday when the main continental selective drilled the first levels of support they faced , complacency reigns clearly among investors and analysts and the fear index is the best example to ratify this trend.
/bit.ly/3keYZos
OB 1012: The Fire-Breathing Dragons Of The Options Market (podcast)
Option Block - Options Insider
Host: Mark Longo, The Options Insider Media Group
Co-host: Andrew Giovinazzi, The Option Pit
Co-host: Mike Tosaw, St. Charles Wealth Management
In This Episode Mark, The Rock Lobster, And Uncle Mike Break Down:
Markets Green To End The Week
Most Active Equity Options Today Including Dis, Tsla
Earnings Volatility In Jpm, Pep, Bac
Unusual Options Activity In Atus, Gol, Rio
Income Vs. Appreciation In A Covered Call Trade
And Much More...
/bit.ly/3kaHmGx
| | | | | | Exchanges | | | Miami International Holdings Reports June 2021 Trading Results, MIAX Exchange Group Sets New Market Share and Volume Records
MIAX
Miami International Holdings, Inc. today reported June 2021 trading results for its U.S. exchange subsidiaries - MIAX , MIAX Pearl and MIAX Emerald (together, the MIAX Exchange Groupâ¢) and the Minneapolis Grain Exchange (MGEX). The MIAX Exchange Group reported a number of new volume and market share records for multi-list options trading including a 16.65% market share record on June 4, 2021 and a monthly market share record of 15.45% in June 2021. The total U.S. multi-listed options market share of 15.45% in June 2021 was 285 basis points higher than the 12.6% market share in June 2020 and represented a 22.6% increase.
/bit.ly/3i0F4aa
Nodal Exchange Named Exchange of the Year By Energy Risk For Third Year in a Row
Nodal Exchange
Nodal Exchange has been named 2021 Exchange of the Year by Energy Risk magazine. The global Energy Risk Awards recognize excellence in energy risk management across the entire supply chain, from producers to traders and consumers, and all firms in between that facilitate risk management.
Nodal Exchange continues to improve its strong position in the North American power futures markets and currently has the majority of the market open interest. Nodal achieved record half year power futures volume as of June 30, 2021 with 1.069 billion MWh traded. Traded volume in June 2021 was 175 TWh, up 51% from the prior year and setting a new calendar month record.
/bwnews.pr/3xCKajx
| | | | | | Moves | | | JP Morgan futures and options head returns to Barclays to head up electronic trading; New head of electronic trading and digital strategy at Barclays will be responsible for driving the bank's BARX offering, The TRADE can reveal.
Annabel Smith - The Trade
The former global head of futures and options electronic trading at JP Morgan has left to rejoin rival investment bank Barclays as head of electronic trading and digital strategy. The bank has confirmed that Peter Ward will join Barclays in September later this year after 11 years with JP Morgan, most recently serving as global head of futures and options trading.
/bit.ly/3eeQRAv
| | | | | | Strategy | | | There's a Massive Arbitrage Opportunity in the Plastics Market
Tracy Alloway - Bloomberg
Behold, the humble nurdle â the tiny pellet of virgin plastic from which all sorts of manufactured products are born.
Like many other commodities this year, the building blocks for everything from laundry baskets to plastic bottles have seen a sharp jump in prices thanks to higher oil prices and a surge in demand for manufactured goods which has sparked an almighty import boom in the West.
/bloom.bg/2U6BS4T
| | | | | | Events | | | Reminder: FIA Webinar Q2 2021 trends in futures and options trading
28 July 2021 ⢠10:00 AM - 11:00 AM ET
This webinar will cover broad trends in volume and open interest during the second quarter of 2021 in the global exchange-traded derivatives markets and take a deep dive into three areas - equity index and interest rate trading in Europe, the growth of ESG futures, and a comparison of US and Chinese agricultural futures markets.
/bit.ly/3ks1N1V
| | | | | | Miscellaneous | | | Farewell open outcry; Following the decision by US derivatives exchange group CME to permanently close its open outcry trading pits, Annabel Smith looks at the history of trading floors in Chicago.
Annabel Smith - The Trade
The clock reads six o'clock and the end of day whistle blows. In his final attempt to kill Sam the sheepdog after a long day at work trying to do so, Looney Tunes' Ralph the wolf stands next to the clocking out system, pulls a stick of dynamite out of his pocket and lights it.
/bit.ly/3i8oqFy
*****JJL: The long farewell continues.
Personal Finance: Why Investors Fail to Do What Works
Jared Dillian - Bloomberg
The financial markets operate in a series of regimes when a certain set of economic conditions exist for a period of time. My first encounter with the concept was in 2000, when I read quantitative analyst Emanuel Derman's paper titled "Regimes of Volatility." Derman explained that we have periods with persistently low volatility and periods with persistently high volatility. But this is also true of other market variables such as inflation, interest rates and commodity prices. Market regimes can persist for many years, but investors often to fail to adapt.
Take the events of earlier this year. Some benefited when inflation rates began to rise and bond yields shot up after the U.S. Presidential inauguration in January on speculation that increased government spending and bigger budget deficits would soon follow. Others were poorly positioned for this regime change and fought against it, losing money in the process. But those people are now being rewarded, as 10-year yields have dropped and the old disinflation trades make a comeback.
/bloom.bg/3yNZDNG
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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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