| August 28, 2023 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Zero-day options have arrived for Europe's most popular stock market index
Barbara Kollmeyer - Morningstar
But will their popularity ever match reach Wall's Street's 0DTE frenzy?
Credited for exacerbating a down day for Wall Street earlier this month, an increasingly popular stock option is now available for one of Europe's most popular stock indexes.
Deutsche Boerse's Eurex, an international futures and options exchange, is now offering investors the ability to trade in zero-day options for the Euro Stoxx 50 index XX:SX5P.
/jlne.ws/3EeGZDp
Lira Options Least Bearish in 17 Months After Massive Rate Hike
Tugce Ozsoy - Bloomberg
Turkey's surprisingly large interest-rate increase last week so far hasn't significantly propped up embattled lira but it has cut the cost of insuring it against depreciation to the least in 17 months.
/jlne.ws/47S3R9n
Coinbase pushes deeper into derivatives-but how many people want to buy them?
Jeff John Roberts - Fortune via Yahoo Finance
Back in 2013, I recall meeting crypto enthusiasts who would assure me that the only "real" way to get Bitcoin was to buy it in the streets. There were other ways to get it, of course, but it was also true that people did buy it in the streets at outdoor meetups or via sites like LocalBitcoins where you could arrange in-person transactions. Typically, this would entail the parties holding up QR codes Venmo-style and handing over paper money.
/jlne.ws/45rI32W
Jackson Hole News: Powell Sounds a Hawkish Tone (Transcript)
Barron's
At last year's Jackson Hole symposium, I delivered a brief, direct message. My remarks this year will be a bit longer, but the message is the same: It is the Fed's job to bring inflation down to our 2 percent goal, and we will do so. We have tightened policy significantly over the past year. Although inflation has moved down from its peakâa welcome developmentâit remains too high. We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.
/jlne.ws/3QWSkQ8
Treasuries Lure Buyers as Juicy Yields Offset Powell Warning
Ruth Carson and Garfield Reynolds - Bloomberg
Beaten-down US Treasuries are proving irresistible to some investors even after Federal Reserve Chair Jerome Powell said he's ready to raise interest rates again to choke off inflation.
Western Asset Management says bonds are set to outperform due to attractive yields, while JPMorgan Chase & Co. is keeping its bullish bets on fixed income despite Powell's warning at Jackson Hole Friday. Even fresh Fed hikes won't deliver bond losses steep enough to outweigh the income from the highest yields since 2007, the bulls argue.
/jlne.ws/47TsMta
Bitcoin Traders Remain Fearful of 'Tail Risk' Amid Renewed Price Lull: Observers
Markets Insider
They call it tail risk in the crypto market: the risk of an asset moving three standard deviations from its current price on the back of a rare event.
Traders fear such an event in bitcoin (BTC) even though the cryptocurrency has been listless around $26,000 since falling over 10% in the week ended Aug. 20. BTC's annualized seven-day historical or realized volatility has cooled to 26% from nearly 60% seen early last week, according to Amberdata.
/jlne.ws/3qVfGLl
Robinhood Is a Bitcoin Whale. What It Means for the Stock.
Joe Light - Barron's
Robinhood Markets owns one of the largest Bitcoin wallets in the world, according to blockchain analytics firm Arkham Intelligence, the latest sign that the discount brokerage has become a major player in the fight for crypto traders.
As of Monday, the wallet contained about $3.1 billion worth of Bitcoin, likely on behalf of Robinhood's customers. That probably represents the bulk of Robinhood's holdings in the token. At the end of June, Robinhood's customers owned about $4.2 billion in Bitcoin, along with another $7.3 billion in other cryptocurrencies such as Ether and Dogecoin, the company said in its earnings report earlier this month.
/jlne.ws/3PhyM7K
| | | | | | Exchanges | | | MIAX Options And MIAX Emerald Options Exchanges - Rollback Of Certain Non-Transaction Fee Changes
MIAX Exchange Group
On August 3, 2023, the Securities and Exchange Commission suspended ToM and cToM fee changes for MIAX Options and MIAX Emerald Options. As a result, fee changes that were refiled for January 1, 2023 effectiveness were rolled back on August 3, 2023.
/jlne.ws/44qF89u
ASX, SGX earnings driven by diversified revenue
Wei-Shen Wong - Waterstechnology
In line with the trend for some of the major global exchanges to diversify revenue streams away from transaction and listing revenues, both the Australian Securities Exchange (ASX) and the Singapore Exchange (SGX) are already benefiting from doing so despite the challenging market and economic environment. SGX reported an 8.7% year-on-year increase in revenue to S$1.2 billion ($877 million) for the full financial year ended June 30, mainly driven by derivatives revenue, which includes equity
/jlne.ws/3QWJoKw
15 Years of Exchange Traded Currency Derivatives Segment on NSE
National Stock Exchange of India
A new beginning for the Exchange Traded Derivatives was marked with the addition of new asset class of Currency, on August 29, 2008. National Stock Exchange of India (NSE) launched the Exchange Traded Currency Derivatives Segment with launch of Futures on currency spot rate US Dollar - Indian Rupee. The first day of trading witnessed trading of 65,798 contracts worth Rs 291 crores with participation from more than 150 trading members including Banks. Exchange traded currency derivatives have served as a viable mechanism for price discovery for different types of market participants with currency exposures, particularly for those who are looking for competitive FX pricing.
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| | | | | | Regulation & Enforcement | | | OCC Comment on CFTC RIN 3038-AF27 Large Trader Reporting Requirements
Megan M. Cohen - OCC
The Options Clearing Corporation ("OCC") appreciates the opportunity to submit these comments on the above-referenced proposal ("Proposal" or "Proposed Rules") under the Commodity Exchange Act ("Exchange Act"). The Commodity Futures Trading Commission ("CFTC" or "Commission") is proposing to modernize its large trader reporting ("LTR") requirements under CFTC Rule 17.00 by (i) updating the submission standard for certain reports; and (ii) replacing certain enumerated data fields with an appendix specifying applicable data elements and a separate Guidebook specifying the form and manner for reporting.
/jlne.ws/44sbwsb
U.S. SEC Adopts Amendments to Expand FINRA Oversight of Proprietary Trading Firms
Sidley Austin LLP
On August 23, 2023, the U.S. Securities and Exchange Commission (SEC or Commission), in a 3-2 split along party lines, adopted amendments (the Amendments) to Rule 15b9-1 under the Securities Exchange Act of 1934 (Exchange Act) that substantially narrow an exemption for broker-dealers from the requirement to become a member of the Financial Industry Regulatory Authority (FINRA).1 Under the Amendments' narrower exemption, nearly all broker-dealers that engage in securities transactions over the counter (OTC) will now be subject to oversight by FINRA, the primary regulator of the OTC markets for securities and currently the only registered national securities association.
/jlne.ws/3Z0LuLG
SEC charges podcaster in first unregistered securities sales claim against NFT offering
CoinTelegraph
The United States Securities and Exchange Commission (SEC) has charged a media and entertainment company with conducting unregistered securities sales when it sold nonfungible tokens (NFTs) to investors between October and December 2021.
Impact Theory, a Los Angeles-based company that produces entertainment and educational content, including several podcasts, allegedly raised almost $30 million through the sales of NFTs it called Founder's Keys, which were offered in three tiers.
/jlne.ws/3YSeUva
| | | | | | Technology | | | Data arms race heats up as venues and vendors eye buy-side business through new initiatives; As the buy-side increasingly seek higher quality and comprehensive data, providers are answering the call, focused on enhancing their services and increasing their scope.
Claudia Preece - The Trade
Across the market, businesses have been increasingly turning their attention to data quality and accessibility, seeking to enhance their offerings for buy-side clients with ample recent movement in the last few weeks. Over recent months, historical Level 3 data provider BMLL has seen a surge in activity as it continues to expand its equities and ETF data coverage. Its products now include data from the Hong Kong Stock Exchange (HKEX), Cboe Europe Indices, and more recently this month, the Shenzhen Stock Exchange.
/jlne.ws/3qQWhv2
| | | | | | Strategy | | | Lessons for next time after Nvidia's stock didn't surge, and options tanked
Steve Goldstein - MarketWatch
An eventful week that included Nvidia earnings and Jerome Powell's Jackson Hole address ended with a solid if not spectacular 0.8% gain for the S&P 500 SPX, which at least brought a streak of three successive weekly declines to an end.
It's worth revisiting Nvidia. According to FactSet, Nvidia's earnings beat Wall Street estimates by 29.7% â a larger beat that the 18% beat last quarter, when the market awoke to the potential of artificial intelligence plays to make money right now. Nvidia sales were 21% ahead of expectations and on top of that, Nvidia's sales guidance for the current quarter was 27% ahead of estimates. It was as massive a beat-and-raise as one could possibly imagine.
/jlne.ws/45JiUAw
Data All Week
Cboe (Video)
In #Vol411, Joel Hawthorne @louiswinthrop gives us #markets updates and lets us know that some of the most actively traded VIX options on Friday were the 30-strike #calls expiring on Sept. 20 and more.
/jlne.ws/45JjJt6
| | | | | | Miscellaneous | | | Shares of Better â whose CEO fired 900 workers on a Zoom call â slumped 93% on their first day of trade
Huileng Tan - Business Insider
Shares fell so quickly that trading was halted four times in the first 30 minutes, Insider's Alex Nicoll reported on Thursday.
The day before the offering, Aurora closed at $17.44, valuing Better at $14 billion. The share price of the new entity then quickly plummeted in its Aug. 24 debut to as low as 77 cents before closing at $1.15 for a valuation of just above $1 billion.
/jlne.ws/3qTK09h
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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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