| | | | | | | March 25, 2025 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Why stock-options traders seem unfazed by the 'Liberation Day' tariffs deadline; Here's one sign investors and traders aren't worried about Trump's April 2 reciprocal tariffs deadline
Vivien Lou Chen - MarketWatch
The April 2 deadline dubbed "Liberation Day" - in which President Donald Trump plans to announce reciprocal tariffs meant to even the playing field between the U.S. and its trading partners - is just over a week away. Yet traders in one particular area are showing little signs of concern.
A relatively low level of worry is being reflected in the implied-volatility term structure of S&P 500 stock-index options. The term structure illustrates how implied volatility for such options changes across different expiration dates.
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Why the 'JPMorgan options whale' can help the stock market over the next week
Jamie Chisholm - MarketWatch
A multibillion-dollar trade adopted by what's been dubbed the JPMorgan options whale could help the stock market rally over the next week, according to a market observer.
Kevin Muir, a former institutional trader who writes the Macro Tourist blog, said it's likely that dealers taking the other side of the trade will need to buy the market into the quarter-end to manage their exposure, underpinning the S&P 500 in the process.
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JPMorgan Chase Launches New ETN Betting on Volatility
Mallika Mitra - ETF
Last week, JPMorgan Chase launched its Inverse VIX Short-Term Futures ETNs (VYLD), which seeks to provide exposure to the daily returns of an index shorting futures tied to the Cboe Volatility Index (also known as the VIX). The new product is designed to increase 1% for every point decrease that VIX futures experience. In short, investors could benefit from market volatility subsiding.
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Trump Media Taps Singapore's Crypto.com for Made-in-America ETFs
Annie Massa - Bloomberg
Trump Media & Technology Group Corp. plans to work with Crypto.com on a lineup of "Made-in-America" investments - an arrangement that puts the president's social media company in business with a Singapore-based firm that was locked in a legal battle with US regulators last year. The Truth Social parent will sell exchange-traded funds tied to digital assets and other US-focused investments on a platform owned by Crypto.com, according to a statement Monday. The products will be available this year in the US, Europe and Asia, pending regulatory approval. Crypto.com will supply the cryptocurrencies and technology underpinning them, and they'll be available through Foris Capital, a New Hampshire-based platform it acquired last year.
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Wall Street Fear Index Climbs. The Tariff Turmoil Isn't Over.
George Glover - Barron's
The U.S. stock market has calmed down lately-but it was getting a little more nervous Tuesday, as investors fretted that the uncertainty caused by U.S. President Donald Trump's trade policies could drag on for a while yet.
The Cboe Volatility Index, a widely followed fear gauge that tracks S&P 500 options contracts and trades under the ticker VIX, climbed 0.6% to just under 18 in early trading. Any reading below 20 is typically seen as a sign of relatively low volatility.
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Bitcoin is just another tech stock, not a market hedge, study shows; Bitcoin is frequently viewed as "digital gold" and a hedge against risks facing the traditional financial sector.
Tanaya Macheel - CNBC
Bitcoin is more closely correlated to the Nasdaq than it is to gold most of the time, and investors could benefit from viewing it as another big tech stock, says Standard Chartered. Bitcoin's correlation with the Nasdaq is currently at about 0.5, after it approached 0.8 earlier this year, according to the bank. Meanwhile, its correlation with gold has been falling since January, touching zero at one point, and is now just above 0.2.
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AmEx derivatives book grows on interest rate swap surge; Receive-fixed swaps dominate hedging portfolio as clearing rate spikes
Joshua Walker - Risk.net
American Express swelled its derivatives book over the 18 months ending last year to levels not seen in seven years, with the portion cleared by a central counterparty climbing to its highest since 2018. The credit card group quadrupled its notional holdings of interest rate swaps from $4.6 billion in Q2 2023 to $19 billion at the end of 2024, while FX forwards grew 18.1% over the same period to $43.1 billion.
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Building the Future: How Citadel Securities is Shaping Miami's Finance Scene
Anna Lyudvig - Traders Magazine
Since moving its headquarters to Miami nearly three years ago, Citadel Securities has not only embraced the Magic City but also significantly contributed to its growing reputation as a financial powerhouse. Among those who have joined the firm locally is Rodrigo Parada Valencia, COO of US Options Market Making. Though Citadel Securities is a relatively new presence in Miami, Parada Valencia has called the city home for a decade and has witnessed its evolution firsthand.
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| | | | | | Exchanges | | | The World Federation of Exchanges calls for greater role for derivatives market
The World Federation of Exchanges
The World Federation of Exchanges (WFE), the global trade association for exchanges and clearing houses, has published a paper today calling for a global, evidence-based refresh of public policy on derivatives. The paper sets out a coherent approach to derivatives in order to nurture their use, especially in regulated, lit environments, to avoid the development of an off-exchange derivatives market that is opaque and less fair to investors. It is essential that all types of users have access to derivatives to manage economic uncertainty. This means avoiding bureaucracy and blocks on their use, while monitoring all off-exchange and all uncleared derivatives more vigilantly and systematically. The role of exchanges in price discovery and clearing houses in neutralising counterparty risk should be nurtured, as without a thriving public derivatives market, participants will turn to less well-regulated trading venues to manage risk, jeopardising the health of the financial system.
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CME Group Will Introduce Tokenization Technology to Enhance Capital Market Efficiency Using Google Cloud's New Universal Ledger
CME Group
Further expanding their transformational partnership, CME Group and Google Cloud today announced that they are piloting solutions for seamless and secure wholesale payments and tokenization of assets. CME Group has successfully completed the first phase of integration and testing of Google Cloud Universal Ledger (GCUL), a novel distributed ledger from Google Cloud.
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| | | | | | Regulation & Enforcement | | | Cboe seeks approval for Fidelity's Solana ETF; The US securities exchange submitted its request to the Securities and Exchange Commission days after filing to list Franklin Templeton's SOL fund.
Alex O'Donnell - CoinTelegraph
Cboe BZX Exchange, a US securities exchange, has requested permission to list a proposed Fidelity exchange-traded fund (ETF) holding Solana, according to March 25 filings.
The request now sits with the US Securities and Exchange Commission, which must approve the filing before trading of the Fidelity Solana Fund can commence on the exchange.
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| | | | | | Technology | | | CME Tests Google's Blockchain Technology in 24-Hour Trading Move
Katherine Doherty - Bloomberg
CME Group Inc. is testing Google Cloud's blockchain technology as it seeks to improve market infrastructure amid the global shift toward round-the-clock trading.
The Chicago-based exchange operator is piloting payment solutions and the tokenization of assets using distributed ledger from Google Cloud, according to a statement Tuesday. CME has completed the first phase of integration and testing of the Google technology, it said.
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| | | | | | Education | | | Volatility Correlations Across Assets
tastylive (Video)
If you want to trade like a tastylive trader, you have to learn how to talk like a tastylive trader. Sit down with Tom and Tony as they dish out and discuss popular trading topics that give you an edge when opening, closing and managing your trades.
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| | | | | | Miscellaneous | | | Gambling Is No Longer Investing's Evil Twin; Legal and regulatory attitudes are rooted in a morality few people accept today.
Aaron Brown - Bloomberg (Opinion)
I suspect many people yawned when the popular online brokerage Robinhood Markets Inc. announced it will offer sports and other prediction market derivatives, starting with betting on the NCAA March Madness basketball games.
After all, 22% of Americans and nearly half of men between the ages of 18 and 49 have made online sport bets, according to a recent poll. It's likely that most of Robinhood's 25 million customers (about 11 million of whom are active) are already wagering on sports and perhaps trading in other prediction markets. The Robinhood customers I know all bet on sports.
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