| September 21, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | 'Witching day' price spikes point to options market manipulation - study; Data reveals patterns that can be explained no other way, researchers say
Rob Mannix - Risk.net
Is someone manipulating options markets on expiration days? A controversial new study says the evidence suggests they are. Researchers have found signs in the settlement pricing of options that point to market manipulation with the potential to cost hedgers billions every year. Looking at futures data from February 2003 to December 2021, researchers from Robeco, the Chinese University of Hong Kong and Copenhagen Business School identified a price spike in equity index futures in the hours
/jlne.ws/3PO446O
What's Behind The 40% Rise In VIX Options Contracts? - Cboe Global Markets
Jad Malaeb - Benzinga
In a recent article, Cboe Global Markets Inc. reported on the growth in VIX options trading in the past few years. In 2023, this growth has surged - VIX volatility index options trading has averaged over 740,000 contracts daily this year. This represents a notable 40% increase compared to recent years when volumes remained around the 500,000 average daily volume (ADV) mark.
/jlne.ws/48la6CV
Ex-Morgan Stanley Prime Broker Plans $3 Billion Asia Hedge Fund 30th Century
Bei Hu - Bloomberg
Kurt Baker, a Millennium Management alumnus and former head of Morgan Stanley's Asia prime brokerage, is seeking nearly $3 billion in capital commitments for a multi-manager hedge fund firm to rival the likes of Citadel in the region, according to a person with knowledge of the matter.
Baker is in advanced talks with several potential investors to back his Hong Kong-based, Asia-focused firm, named 30th Century Partners, said the person, asking not to be identified discussing private information. It plans to start trading in June 2024 with eight to 10 investment teams.
/jlne.ws/3ENqn69
Hedge funds add fuel to oil price rally with bets on rise above $100
George Steer and David Sheppard - Financial Times
Hedge funds are piling into the oil market betting that prices will soon pass $100 a barrel, adding impetus to a rally sparked by production and export cuts from Saudi Arabia and Russia.
Riyadh's extension until December of a 1mn barrel a day oil cut, in addition to further cuts under its Opec+ target, has compounded Moscow's move to limit exports and pushed prices for Brent crude, the international oil benchmark, to $95 a barrel this week, a fresh high for the year.
/jlne.ws/3rjRMJV
| | | | | | Exchanges | | | Cboe Global Markets CEO's exit after board probe stokes talk of a sale; The Chicago-based options exchange owner said Ed Tilly "did not disclose" relationships with colleagues as it names his successors as chairman and CEO.
David Roeder - Chicago Sun-Times
What Ed Tilly did to merit his sudden departure as chairman and CEO of Cboe Global Markets appears to have been serious. "They struck hard and they struck fast," whatever was learned, an exchange expert said. Tilly resigned from his post at Cboe, the nation's leading market for options trading, following a month-long board investigation of his conduct, the company said. In its announcement Tuesday, the company said the probe turned up multiple cases of wrongdoing unrelated to finances.
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SGX and SIX chiefs elected chair and vice chair of the World Federation of Exchanges; A total of seven board members have been elected to the board; individuals hail from TMX Group, Bermuda Stock Exchange, Cboe, Japan Exchange Group, Singapore Exchange and Korea exchange.
Claudia Preece - The Trade
The World Federation of Exchanges (WFE) has named Boon Chye Loh, chief executive of the Singapore Exchange (SGX) and Jos Dijsselhof, chief executive of SIX, as chair and vice chair respectively following a unanimous vote at a general assembly.
/jlne.ws/3RvuDie
OCC's Refreshed Cultural Values with Chief Executive Officer Andrej Bolkovic
OCC
OCC recently refreshed its cultural values to better reflect where the organization is today and where we aim to be in the future. We believe they promote a culture of integrity, accountability, learning and growth, and treating others with respect. In this video, our CEO Andrej Bolkovic shares how and why the values were refreshed as well as why they are crucial for success. Watch the video below, and learn more about our values here.
/jlne.ws/48j5VaZ
| | | | | | Strategy | | | Can Volatility Remain Elevated?
Cboe
In #Vol411, Scott Bauer @cboesib covers today's busy options trading - some big rolls of $VIX Oct #options to Nov/Dec, heavy volume in 0DTE $SPX options, activity in $TSLA & $AAPL and more.
/jlne.ws/3EOITeq
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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
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| | | Jeff Bergstrom
Editor
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