| November 02, 2023 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Observations & Insight | | | There is an intriguing story from Bloomberg this morning titled "Outside China, "'Everything Apps' Haven't Worked. Why Would Musk's?" Back when I was an electronic trading broker clearing Man Financial, I did not want to use MTrade, the inhouse offering from Man. Instead, I wanted tools that offered my clients the best way to manage a particular type of trade execution. I was responsible for putting Patsystems into Man and later CQG. With Pats, my clients needed the point and click capability to be able to interact with the market quickly. Pats also had a more retail friendly cost structure than other products available that offered equal or even better market access. With CQG, I needed a platform to be able to trade options online. CQG had the best risk management system of any of the trading platforms I had seen, which was essential for the complex world of options trading. The point was, clients wanted the right tool for the right job, not the one tool that did everything, albeit in the same way for everything. So I really wonder whether this plan of Mr. Musk's will really work. Based on my experience, it won't. ~JJL
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Former CFTC Commissioner Dawn Stump Discusses Crypto, Carbon Markets, and the Future of Trading at FIA EXPO 2023
JohnLothianNews.com
At FIA EXPO 2023, John Lothian News interviewed former CFTC Commissioner Dawn Stump, the head of Stump Strategic. In the sit-down, Stump was probed on several critical matters central to the futures industry and the larger financial landscape.
Watch the video »
| | | | | | Lead Stories | | | Why stock-market bulls say 'Santa rally' may have already started as equities surge to kick off November
William Watts - MarketWatch
Stock-market bulls looking for a year-end rally are feeling encouraged as a four-day rally accompanied by retreating bond yields helps take the sting out of three-month retreat that sent the S&P 500 and Nasdaq Composite into market corrections.
"Halloween is over...it is conceivable here that the Santa Claus rally has already started simply because pessimism was so thick in September and October," markets economist Ed Yardeni, president of Yardeni Research Inc., told MarketWatch Thursday.
/jlne.ws/47fwTib
JPMorgan's Dimon warns the Fed's inflation war will spook markets - and flags a raft of threats to the US economy
Theron Mohamed - Business Insider
"I personally believe that at one point it will rattle the markets," the JPMorgan CEO told Yahoo Finance on Wednesday, referring to the Fed's efforts to curb price growth by raising borrowing costs and shrinking the US money supply. "You're going to see markets get a little rattled."
Dimon suggested the recent volatility in Treasuries could ramp up, as liquidity has worsened and there's hasn't been "real pressure" in the overnight and repurchase-agreement or "repo" markets yet.
/jlne.ws/3QGuk3b
FX hedging behaviours shifting as firms take an ever more proactive approach to risk; Hedging strategies can reap the benefits of increased volatility - turning it into a friend rather than a foe - with a flexible and dynamic approach, expert tells The TRADE.
Claudia Preece - The Trade
As the market increasingly turns its attention to FX hedging, not only is the market hedging more (an overhang reaction to last year's highly volatile market), but the strategies around FX hedging are also undergoing change as participants take an increasingly proactive approach.
/jlne.ws/3QpBzLs
Oil traders pay premiums to secure 2024 Mideast crude supplies
Florence Tan - Reuters
Oil traders will pay premiums for the annual supply of most grades of Middle East crude in 2024, trade sources said, on concerns over supply from the region after the Israel-Gaza conflict heightened geopolitical tensions.
The annual deals between trading firms purchasing from producers and equity holders of Middle East crude were mostly concluded by the start of this week, nearly a month since the conflict between Israel and Hamas militants broke out, which has sparked fears of a contagion in the region and made global oil prices volatile.
/jlne.ws/3shQG1H
Computer-led equity hedge funds beat human stock-pickers in October
Carolina Mandl - Reuters
Hedge funds that trade equities using computer programmes defeated human stock-pickers in October by a large difference in performance, according to a Goldman Sachs note.
Systematic long/short hedge funds, as the computer-led strategy is known, posted 4.97% in gains last month, while fundamental long/short went down 0.66%, the bank's prime services team wrote.
/jlne.ws/49dUW33
| | | | | | Exchanges | | | OCC Reports October 2023 Monthly Volume Data
OCC
OCC, the world's largest equity derivatives clearing organization, announced today that year-to-date average daily volume through October 2023 was 44.4 million contracts. Total monthly volume for October 2023 was 988.3 million contracts.
/jlne.ws/40j6JsJ
CME Group Reports Highest-Ever October ADV of 25.2 Million Contracts
CME Group
Overall volume grew 11% over October 2022. Strongest October in company history for interest rate ADV. Record equity index options volume driven by E-mini S&P 500 contracts. Continued growth across SOFR and U.S. Treasury complexes. CME Group, the world's leading derivatives marketplace, today reported its October 2023 market statistics, reaching an average daily volume (ADV) of 25.2 million contracts during the month, an increase of 11% over 2022 and the company's highest-ever October ADV on record. Market statistics are available in greater detail at https://cmegroupinc.gcs-web.com/monthly-volume.
/jlne.ws/3snyUdh
Eurex relaunches its EURIBOR derivatives segment
Eurex
As of today, 1 November, Eurex has relaunched its EURIBOR derivatives segment. This is accompanied by the start of its STIR Partnership and Liquidity Provider Programs supported by major market participants. The relaunch of Eurex's EURIBOR Futures and Options marks an important milestone in Eurex's ambition to build out the Home of the Euro Yield Curve.
/jlne.ws/3Qq8rUJ
Leaders in Trading 2023: Meet the nominees for ... Best Innovation at the Close; Learn more about the four firms shortlisted for The TRADE's 2023 Editors' Choice Award for Best Innovation at the Close, including Aquis Exchange, Cboe Global Markets, SIX Swiss Exchange and Turquoise.
Editors - The Trade
Next up in our Leaders in Trading 2023 Editors' Choice Awards write up series, we bring you the shortlisted candidates for Best Innovation at the Close, recognising those venues going above and beyond to support participants when trading at the Close.
/jlne.ws/40oOJNK
Defiance launches Russell 2000 daily put-write ETF
James Lord - ETF Strategy
Defiance ETFs has launched a new actively managed ETF that aims to redefine how investors approach income generation in the US small-cap universe.
The Defiance R2000 Enhanced Options Income ETF (IWMY US) has been listed on NYSE Arca with an expense ratio of 0.99%.
/jlne.ws/46VLyiS
| | | | | | Regulation & Enforcement | | | Wall Street regulator adopts new rules for swap trading facilities
Reuters
The U.S. Securities and Exchange Commission on Thursday adopted new rules governing security-based swap trading platforms, implementing a law adopted by Congress after the global financial crisis of 2007-2009.
/jlne.ws/3u4vOeI
| | | | | | Strategy | | | Options Boot Camp 261: The Most Terrifying Options Strategies of All Time
The Options Insider (Podcast)
On this episode, Mark and Dan discuss:
The top 5 most terrifying options trades of all time;
The scariest "sounding" options strategy name of all time;
Trading commodity options compared with stock options;
Whether 0DTE options increase intra-day volatility;
And much more.
/jlne.ws/40kXEQa
Bitcoin (BTC) Put Options, Which Offer Downside Protection, Look Unusually Cheap. Will the Situation Last?
Omkar Godbole - Coindesk
Put options or bearish bets tied to bitcoin (BTC) are trading at a discount to historical standards, offering a rare opportunity for bulls to snap up downside hedges at cheap valuations.
The conclusion is based on the ratio between two metrics - implied volatility for 25-delta out-of-the-money (OTM) BTC put options and the 30-day implied volatility (IV) of at-the-money (ATM) options. The ratio has dipped below 1.00, according to data provided by Amberdata.
/jlne.ws/47aW19G
Here's How to Invest Amid Market Fears
The Wall Street Journal (Video)
GoodHaven Capital Management co-founder Keith Trauner joins MoneyBeat to explain how investors can put their money to work amid volatility and market fears.
/jlne.ws/3SlpSbz
Spot VIX
Cboe (Video)
In #Vol411, Scott Bauer @cboesib shares that $VIX #futures are now trading at the 2-week low, spot #VIX has come to its 50-day moving average, the 50- and 200-day moving averages are almost crossing at about $0.50 apart (the last time that happened was in Dec. 2022) and more.
/jlne.ws/3QloWRN
Traders Scout for Options in World's Least Volatile FX Market
Ronojoy Mazumdar - Yahoo Finance
An unusually calm Indian rupee is prompting traders to turn to derivatives and other crosses that show more signs of life, according to foreign exchange consultants.
Traders are selling options and switching to more volatile pairs like the euro or pound as the swings in the rupee versus the dollar have ebbed to nearly a two-decade low, limiting the scope for making profits.
/jlne.ws/47iNWzN
| | | | | | Education | | | How to Trade the VIX: Rules for Premium Selling
Anton Kulikov - tastylive
Even though stock markets have gone down in the second half of October, we also have seen implied volatility (IV, also referred to as market fear) also move down. That is not supposed to happen. So why did it happen?
/jlne.ws/3Qq6N58
Wide World of Options: Ratio Spreads: Is More Really More?
The Options Insider (Podcast)
Is there more to gain (or lose) when buying more options than you sell or selling more than you buy? And what about pricingâhow do the Greeks and implied volatility factor into the mix? Join host Mark Benzaquen and fellow OIC instructor Ken Keating as they discuss, dissect, and deconstruct ratio spreads for stock repair and bullish and bearish forecasts, and uncover whether more is really more.
/jlne.ws/3sagKMj
| | | | | | Miscellaneous | | | The new question for the Federal Reserve: how long to keep rates high
Colby Smith - Financial Times
Since the Federal Reserve started raising interest rates in its battle against inflation 18 months ago, the US central bank has made one thing clear: all policy options must be kept on the table at all times.
From jumbo interest rate rises â it has implemented several â to the repeated warnings that they could remain elevated for an extended period, chair Jay Powell has refused to rule out anything that will enable the Fed to get a grip on price pressures that have proved far more persistent than most economists and policymakers ever expected.
/jlne.ws/3Qq4Jdo
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