| August 15, 2023 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Zero-Day Options Cement Presence in Reversal-Ridden Stock Market
Lu Wang - Bloomberg
The craze for fast-expiring options is ramping to unprecedented heights in a stock market that has lately been given to severe intraday moves. It's probably not a coincidence. About 1.86 million so-called zero-day contracts - those tied to S&P 500 with a maturity less than 24 hours - changed hands on Thursday, making up a record 55% of the index's total volume, according to data compiled by Nomura Securities International. Halfway into August, the options known as zero days to expiration, or 0DTE, have seen four of their top 10 most-traded sessions ever. https://jlne.ws/3DVb4b1
The Rise of Zero-Day Contracts Options Trading: Understanding its Impact on the S&P 500
Investing.com
Summary: Fast-expiring options known as zero-day contracts, specifically those tied to the S&P 500 with a maturity of less than 24 hours, have witnessed a significant uptick in trading activity. Recent data from Nomura Securities (NMR) indicates that about 1.86 million such contracts were traded on a single day, accounting for a record-breaking 55% of the index's total volume. This increase in 0DTE trading has occurred in tandem with considerable intraday swings in the stock market.
/jlne.ws/3OzYkvl
| | | | | | Exchanges | | | Cboe Global Markets Appoints Mandy Xu as Vice President and Head of Derivatives Market Intelligence
Cboe via PRNewswire
Cboe Global Markets, Inc. (Cboe: CBOE), the world's leading derivatives and securities exchange network, today announced Mandy Xu has joined the company as Vice President and Head of Derivatives Market Intelligence. In this role, Xu is planning to produce high-level insights and analysis on derivatives market themes and flows, with a focus on furthering client education on Cboe's markets and its leading suite of derivatives products.
/jlne.ws/445drTq
HKEX, Banks Exploring Ways to Boost Stock, Derivatives Trading
Kiuyan Wong - Bloomberg News
Banks and the stock exchange in Hong Kong are discussing ways to revive moribund trading volumes. Regular meetings between Hong Kong Exchanges & Clearing Ltd. and major banks have in recent weeks focused on measures including scaling back the 2021 increase in the city's stamp duty on stock trading, and improving the design of derivative products, said people familiar with the talks who asked not to be identified disclosing internal matters. Traders are also pushing to cut margin financing costs.
/jlne.ws/3YQOV7H
Intercontinental Exchange cancels US bitcoin futures contract
Radi Khasawneh - FOW (subscription only)
ICE will next month cease listing all its Bakkt Bitcoin contracts after the exchange group saw waning interest in US regulated physically delivered contracts
/jlne.ws/45vWsdW
SGX Securities to list Structured Certificates, a first in Asia
SGX
SGX Securities today announced the launch of Structured Certificates, which will be listed and available for trading from 30 August 2023. SGX is the first exchange in Asia to offer trading in Structured Certificates, providing investors with enhanced access to a new range of products that cater to different investor profiles and needs. Structured Certificates are third-party issued financial instruments designed to meet the specific needs of investors such as yield enhancements and growth payoffs. Commonly traded in Europe, the returns of these products are defined by their payoff profiles that are dependent on the performance of an underlying asset such as a single stock or equity index.
/jlne.ws/3s8BpQh
MIAX Sapphire Options Exchange Releases Technical Documents
MIAX Press Release via Traders Magazine
As previously announced in our May 1, 2023 Alert, the target launch date for the MIAX Sapphire Options electronic exchange is Q1 2024, pending SEC approval. Technical documents, website support, important dates and exchange code information for the MIAX Sapphire Options Exchange are included below.
/jlne.ws/3DX24Cl
| | | | | | Regulation & Enforcement | | | CFTC Orders Texas Trading Advisor and His Company to Pay Approximately $250,000 for Fraudulent Solicitation and Failure to Register
CFTC
The Commodity Futures Trading Commission today issued an order filing and simultaneously settling charges against Peter L. Bryant of Texas and his company, Bryant Capital Trade Management Corporation (Bryant Capital), a registered Texas entity, for committing fraud while acting as an unregistered commodity trading advisor (CTA) and for failing to register as a CTA.
/jlne.ws/3sfvd9h
| | | | | | Events | | | Euronext Sustainability Week
Euronext
Join us for an entire week of debate around Sustainable Finance, combining virtual workshops and webinars with local sessions online and in person. Discover the programme and register to participate in the upcoming Euronext Sustainability Week from 4 to 8 September 2023. Euronext Sustainability Week is an entire week dedicated to Sustainable Finance, with public opportunities for debate and moments of direct dialogue between companies and investors, covering topics such as sustainable investing, ESG reporting, and green finance. ESG experts, issuers, investors, governmental delegates, and representatives from financial institutions, will contribute to these discussions via local sessions online and in person, workshops, and webinars.
/jlne.ws/3OWXKJH
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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
Publisher | | | Sarah Rudolph
Editor-in-Chief
| | | Jeff Bergstrom
Editor
| | | Asma Awass
Intern |
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