 | | | | | | | | January 23, 2025 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Yen Options Traders Flip Strategy Going Into BOJ Decision; Clients are selling FX pair's implied volatility, Nomura says; Dollar-yen's decline has stalled around support at its 50-DMA
David Finnerty - Bloomberg
Traders in dollar-yen options are changing their strategy going into an expected Bank of Japan interest-rate increase Friday now that US President Donald Trump's inauguration is over.
Before this week, investors' bias had been to buy downside put options that gain in value if dollar-yen falls further, as expectations for a BOJ hike mounted. Now that's almost fully priced in, they've turned their attention to a strategy that benefits if the currency pair trades in a tight range after the policy decision.
/jlne.ws/4howhfe
Wall Street's Tech-Powered Bond Trades Hit Record $1 Trillion; Portfolio trading handled 9% of US credit volume in 2024; Rise of bond ETFs, electronic trading have fueled boom
Katie Greifeld - Bloomberg
A tech-powered approach to bond trading that helps firms move hundreds of securities in one go has just posted its best year yet. Portfolio trades, in which large baskets of debt are bought and sold in one swoop, accounted for about 9% of total US corporate bond volume in 2024, according to data from Tradeweb Markets Inc. That's a record level of activity, which propelled the value of all transactions using the method past $1 trillion for the first time.
/jlne.ws/3E92JUI
Hedge Fund Clients Pulled $7 Billion From Elite Money Manager Since 2021
Katherine Burton - Bloomberg
Clients of Seth Klarman's Baupost Group pulled roughly $7 billion from the hedge fund in the past three years, losing patience with the famed value investor after a decade of lackluster returns. Baupost, once among the best-performing hedge funds, gained only about 4% a year since 2014, according to investors. The $23 billion firm's performance over that decade is about a fifth of its historic returns, lagging behind other multistrategy hedge funds and a blended stock and bond index fund. It lost money in three of those 10 years - though the steepest drop was less than 5% - as a sustained period of low interest rates and a soaring stock market resulted in fewer of the distressed plays where Klarman shines.
/jlne.ws/40IHOQZ
Trade wars sparked by Trump tariffs would be 'catastrophic', WTO chief says
Emma Farge - Reuters
The World Trade Organization chief said on Thursday that any tit-for-tat trade wars prompted by U.S. President Donald Trump's tariff threats would have catastrophic consequences for global growth, urging states to refrain from retaliation.
WTO Director-General Ngozi Okonjo-Iweala, a former Nigerian finance minister, starts her second term as head of the global trade watchdog this year at a time when Trump's tariff threats have raised the spectre of trade wars.
/jlne.ws/4hvqnsV
| | | | | | Exchanges | | | The World Federation of Exchanges announces the industry's priorities for 2025
The WFE Communications Team - WFE
The World Federation of Exchanges announces the industry's priorities for 2025 London, 23rd January 2025 - The World Federation of Exchanges (WFE), the global industry group for exchanges and CCPs, today announces the 2025 priorities for the exchange and clearing industry. The WFE Board - 18 leaders of market infrastructures from around the world, met last week to discuss and agree the priorities. The WFE, which represents over 250 market infrastructures, will focus on the areas below: The Role, Purpose & Work of Market Infrastructure in the next decade: As public, lit markets continue to champion the rights of investors, issuers and market participants, while more lightly regulated alternatives continue to be a source of concern and undermine social welfare, the WFE will advocate for regulation for all forms of financial trading that ensures markets remain trustworthy, inclusive, transparent, and serves the needs of the industry's diverse stakeholders.
/jlne.ws/4awvgzp
Cboe FX 2024 Recap and Look Ahead
Cboe
The Cboe FX Team recently sent a note to customers reflecting on the accomplishments of the Cboe FX Team in 2024 and a look ahead to 2025.
As we start 2025, we wanted to reflect on our key achievements during 2024 and provide a preview into what you can expect from us in the coming 12 months to support your FX trading needs.
The past year included several significant market-moving events, ranging from global elections to geopolitical unrest and shifts in central bank monetary policy, resulting in considerable market volatility.
Cboe FX rose to the challenges these events presented: Our systems demonstrated exceptional resilience and handled all-time record volumes, affirming our status as one of the leading institutional FX platforms. We continued to invest in our products and technological scalability, and also made significant strides in our diversification efforts, particularly with our Non-deliverable forwards (NDF) and U.S. Treasuries platforms - both of which achieved record annual volumes.
/jlne.ws/3WwDcex
Miami International Holdings Announces Timeline for Migration of Minneapolis Hard Red Spring Wheat Trading to New MIAX Futures Onyx Platform
MIAX
Miami International Holdings, Inc. (MIH), a technology-driven leader in building and operating regulated financial markets across multiple asset classes, today announced it will migrate Minneapolis Hard Red Spring Wheat (Minneapolis HRSW) futures to its MIAX Futures Onyx platform in Q2 2025. Minneapolis HRSW futures will continue to be available for trading on CME Globex until the launch of MIAX Futures Onyx.
"MIAX Futures (formerly Minneapolis Grain Exchange) has strong, collaborative relationships with key Minneapolis HRSW market participants dating back over a century," said Thomas P. Gallagher, Chairman and Chief Executive Officer of MIH. "The launch of MIAX Futures Onyx represents MIH's commitment to supporting the agricultural industry with continued investments in programs to promote liquidity, offer competitive fee schedules and develop industry-leading technology."
/jlne.ws/40IyBbv
Derivatives in insurance: managing risk and optimizing capital
Eurex
In the run-up to Derivatives Forum Frankfurt 2025, which will be held on 26 and 27 February, we are publishing a series of interviews with key stakeholders in the event. In this article, we sat down with Sushil Krishan, Executive Director at Goldman Sachs, to talk about the opportunities that listed derivatives offer the insurance industry. While insurance companies have a need for reliable and accurate hedging, accessing the instruments they need to do so is often difficult. We discussed how a listed and cleared ecosystem could alleviate the operational burden of OTC markets and broaden access to more precise hedges.
/jlne.ws/4htWfy7
| | | | | | Regulation & Enforcement | | | Isda to finalise drafting updated FX definitions this year; New definitions on disruption events and fallbacks are core focus
Emma Siponmaa - Risk.net
A new framework for handling disruption events is at the core of work being carried out by the International Swaps and Derivatives Association to update its foreign exchange and currency option definitions, which is expected to be finalised this year.
/jlne.ws/42mhWMd
| | | | | | Miscellaneous | | | A few whales and a bunch of new retail traders: What to know about who's buying $Trump coin
Matthew Fox - Markets Insider
The issuance of the official $Trump coin was the headline event of the crypto market in the past week, quickly becoming the 25th largest cryptocurrency by market value days after its debut.
The token has attracted a few large "whale" investors, but it's also caught the attention of retail investors, with many first-time crypto buyers among them.
/jlne.ws/3PJJiEu
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| | | Jeff Bergstrom
Editor
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