| October 20, 2022 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Wall Street Is Taking a 'YOLO' Page Out of Retail's Playbook
Tracy Alloway - Bloomberg
'You Only Live Once' became the rallying cry of retail traders in certain Reddit forums making high-risk bets in stock markets.
Now, it might also be the inspiration for a growing group of professional investors who appear to be taking a page out of retail's playbook with a controversial options strategy.
/jlne.ws/3sfbGSY
Dark Pool Index Shows Epic Bearishness Among Retail Stock Traders
Vildana Hajric - Bloomberg
The stock market might be trying to bounce back, but one group of investors is staying on the sidelines: retail traders.
That's according to an esoteric indicator designed to track small-time speculators, something known as the Dark Index that is kept by options-analysis firm SqueezeMetrics. Its current reading -- 40.9% -- is hovering around the lowest levels on record and is near a 2022 trough, meaning that the group is "selling into the rally."
/jlne.ws/3sdtyhe
Expect the Fed to Keep Interest Rates High: Nobel Laureate Myron Scholes
Craig Mellow - Barron's
Investors should buckle up for an extended run of high interest rates and a likely recession, financial luminary Myron Scholes said.
"Real rates are still negative," says the co-founding father of options pricing. "The Fed will have to keep increasing until they're positive and biting."
/jlne.ws/3EX2REW
Short Seller Chanos Who Exposed Enron Scandal Starts Daily Liquidity Hedge Fund
Nishant Kumar - Bloomberg
Famed short seller Jim Chanos is offering European investors access to his bearish bets.
Chanos, who put successful short bets on companies such as Enron and Wirecard AG, has joined up with London-based Green Ash Partners to launch an equity long/short hedge fund. The fund began trading this month with about $20 million of internal capital, according to a statement.
/jlne.ws/3TA4CMw
Hedge funds see $26 bln in net outflows in Q3 - HFR
Reuters
Global investors redeemed $26 billion from hedge funds in the third quarter, in the second consecutive quarter of net asset outflows, industry data provider HFR said on Thursday.
In the year, investors pulled out $33.7 billion from hedge funds worldwide, HFR showed, as poor performance has spooked pension funds, endowments and family offices.
/jlne.ws/3TiaIRL
Institutions Keep Yanking Cash from Hedge Funds
Eric Wallerstein - WSJ
Investors have pulled back from their hedge-fund bets, despite the industry's outperformance navigating this year's volatility.
/jlne.ws/3VM8Nqk
Is the Bear Market Over? 2 Telling Indicators Say Not Quite Yet
Bram Berkowitz - Nasdaq
Since a bad inflation report last week, stocks have suddenly rallied for no obvious reason, making many investors wonder if the brutal bear market that has ensued for most of the year is over.
After all, the S&P 500, a broader benchmark for the overall market, is still down more than 23% and is only about 11.8% higher than pre-pandemic levels in 2020. Over two years, it would not be at all irregular to see the market make these kinds of gains.
/jlne.ws/3MLgn0t
| | | | | | Exchanges | | | Cboe Global Markets Launches Options Institute Academic Research Grant Program with Sponsors S&P Dow Jones Indices and MSCI
Cboe Global Markets, Inc.
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today during its global Risk Management Conference (RMC) in Reykjavik, Iceland announced a new grant program developed by the Cboe Options Institute, naming S&P Dow Jones Indices (S&P DJI) and MSCI as the first grant sponsors.
/jlne.ws/3gsy1tW
TradersWorld Named OCC's Edward J. Modla the Best Options Educator in 2022
The Options Industry Council (OIC)
Edward Modla, Executive Director, Investor Education at OCC has been selected as the winner of the 2022 TradersWorld FinTech Award, "Best Options Educator".
The TradersWorld FinTech Awards are a celebration of the companies and individuals in the FinTech industry responsible for driving innovation forward, developing new technologies, and providing traders and investors with the knowledge and tools they need to prosper.
/jlne.ws/3CTprM6
MarketAxess delivers record third quarter, driven by fixed income volatility; The electronic trading platform recorded strong numbers for the last quarter, driven by growth in public and private debt trading.
Laurie McAughtry - The Trade
MarketAxess, an electronic trading platform for fixed income securities and provider of market data and post-trade services, has announced record results for the third quarter. Total trading average daily volume (ADV) for the platform rose by 32% to $31.4 billion, driven by an 18% increase in total credit trading and a 42% interest in US Treasury ADV. Portfolio trading also notably rose to a record $25 billion, up from just $9 billion in the same quarter the previous year.
/jlne.ws/3eQh1Nt
MarketAxess Reports Third Quarter 2022 Results
MarketAxess Holdings Inc.
MarketAxess Holdings Inc. (Nasdaq: MKTX) the operator of a leading electronic trading platform for fixed-income securities, and the provider of market data and post-trade services for the global fixed-income markets, today announced financial results for the third quarter of 2022.
/jlne.ws/3MMASty
Robinhood Vs. Acorns: Which Investing App Is Better for You?
Rickie Houston - Business Insider
Robinhood and Acorns both offer multiple products and account options for retail investors. You can invest in ETFs with either platform, and both companies provide spending perks and investing round-up features.
/jlne.ws/3Skx6sG
| | | | | | Regulation & Enforcement | | | ISDA Readies Contractual Standards for Crypto Derivatives Space
Mark New - DerivSource
The International Swaps and Derivatives Association (ISDA) is collaborating with the digital asset industry (through the ISDA Digital Assets Legal Group) to establish contractual standards for crypto derivatives. In a DerivSource Q&A, Mark New, senior counsel, Americas at ISDA, discusses what the forthcoming standards will look like, how they will cope with digital asset-specific events such as forks and airdrops and what to expect next from the trade association.
/jlne.ws/3VG0FHQ
| | | | | | Technology | | | FIA announces 10 startups selected for 2022 Innovators Pavilion
FIA
FIA today announced the 10 startups that have been chosen to exhibit in the 2022 Innovators Pavilion, FIA's annual showcase for fintech startups relevant to derivatives trading and clearing. The Pavilion takes place during FIA's Futures and Options Expo, which brings together traders, brokers and other market professionals from a wide range of firms in the derivatives industry. The conference will be held in Chicago, Nov. 14-15, 2022.
/jlne.ws/3eRmmo0
Euromoney TRADEDATA rebrands as ETD. New look. Same pioneering spirit.
ETD - PRNewswire
Euromoney TRADEDATA is rebranding as ETD - a business with a brand-new identity, but a 25-year history of redefining what reference data can do for the futures and options community. ETD's new Data by Design tagline neatly sums up the core proposition it has followed from the start: to deliver trusted, high-quality derivatives reference data in ways that are carefully designed around its clients' needs, technology and workflows.
/jlne.ws/3CMcm7i
| | | | | | Strategy | | | The Stock Market Could Get a Lot Worse. You Need a Better Strategy.
Steven M. Sears - Barron's
The end is nigh, but not everyone agrees on what exactly is ending.
Some investors are preparing for Armageddon, and others are wondering whether stock prices have fallen so far that the end of this bearish chapter might soon end.
This dramatic tension creates an opportunity for long-term investors to engage in what we have long referred to as "time arbitrage." The strategy seeks to balance the risks of todayâand there are manyâwith the potential rewards of tomorrow.
/jlne.ws/3goZ5u3
This Is the Hottest Options Trade in the Market Right Now
Gunjan Banerji - WSJ
Options bets that expire within mere hours are exploding in popularity.
Retail and institutional traders are piling into contracts that expire the same day or the next day. Lately, there have been a few trading sessions marked by particularly heavy activity, potentially worsening the wild intraday swings that have dominated this year, according to Charlie McElligott, a managing director at Nomura Securities International.
/jlne.ws/3VKWoTB
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| | | Jeff Bergstrom
Editor
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