A $364 Trillion Game of Brexit Chicken Gets Ugly; European shares retreat as caution over the economic outlook resurfaces after the biggest ever monthly rally

Nov 30, 2020

$16,711/$300,000 (5.6%)
Steve Auerbach, Guy Sheetz (and Anonymous x2)

Lead Stories

A $364 Trillion Game of Brexit Chicken Gets Ugly; The U.K. and the European Union are locked in a derivatives standoff driven by politics rather than what’s best for investors.
Lionel Laurent – Bloomberg
Politicians in the European Union are fretting about how little time is left to strike a Brexit trade deal, with French Foreign Minister Jean-Yves Le Drian publicly bemoaning British foot-dragging this week. Now frustration has hit the once dull world of financial regulation, where the City of London and EU are locked in a staring contest over a big chunk of the $364 trillion interest-rate swap market.
/bloom.bg/3qe1J6c

European shares retreat as caution over the economic outlook resurfaces after the biggest ever monthly rally
Amanda Cooper – Markets Insider
European shares retreated on Monday, but the region’s benchmark index was still set for its biggest ever monthly rise, as optimism over a vaccine has helped lift some of the most battered sectors in one of the virus hotspots.
The Stoxx 600 fell by 0.1% in early trading, under pressure from profit-taking in some of the “real-economy” sectors, such as energy, banks and retail. The index has risen by 15% in November, the largest one-month increase since its inception in 1998.
/bit.ly/3qdZUWJ

Contrarian scenarios that could upset the market consensus
Robin Wigglesworth – Financial Times
This is the time of year when financial analysts figuratively gut the global economy and examine the entrails to divine what the next year might hold. What is always a difficult exercise looks particularly hopeless right now.
It is tempting to mock the tsunami of year-ahead outlook that gushes out of investment banks’ research departments this time every year. When someone turns out to have nailed a prediction for where bond yields or the stock market are heading it is often more down to luck than forecasting ability.
/on.ft.com/3mnwqUa

Bitcoin (BTC USD) Rallies Toward $19,000 After Rout
Todd White – Bloomberg
Bitcoin clawed back all of its losses from the biggest rout since March, showing a resiliency in a cryptocurrency rally that’s outperformed most major asset classes in 2020.
The most-traded digital coin rose over the weekend and added almost 5% more on Monday to $19,109. That topped its peak closing level reached last week, before prices started tumbling. A Bloomberg gauge of the biggest cryptocurrencies is up 13% from Friday.
/bloom.bg/36kZgPm

Exchanges and Clearing

HKEX to Introduce New Stock Futures Contracts and Option Classes
HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Monday) the launch of four new stock futures contracts and four new stock option classes on Monday, 7 December 2020. HKEX has recorded strong growth in the trading of stock futures and options this year, with average daily turnover of 523,011 contracts in the first 10 months, a 15.4% increase compared with the same period last year.
/bit.ly/33wjhRd

MIAX Exchange Group – Options Markets – Corporate Action Alert: Costco Wholesale Corporation (COST) and Fastenal Company (FAST)
MIAX Options
Costco Wholesale Corporation (COST) and Fastenal Company (FAST) have announced Special Cash Dividends. Associated strike price adjustments will become effective on Tuesday, December 1, 2020. COST and FAST options will continue to trade without interruption on the MIAX Options Exchange, MIAX PEARL Options Exchange and MIAX Emerald Options Exchange. All GTC orders resting on the MIAX order books in COST and FAST will be canceled at the close of business on Monday, November 30, 2020.
/bit.ly/3mp1Qto

MIAX Exchange Group – Options Markets – Corporate Action Alert: SYNNEX Corporation (SNX)
MIAX Options
SYNNEX Corporation (SNX) has announced a distribution effective for Tuesday, December 1, 2020. On that date, the current SNX option class will change to SNX1. The MIAX Options Exchange, MIAX PEARL Options Exchange and MIAX Emerald Options Exchange will not list SNX1 options. Therefore, no options on SNX will be available for trading on Tuesday, December 1, 2020.
/bit.ly/3mnbvRf

MIAX Exchange Group – Options Markets – Corporate Action Alert: McCormick & Company, Incorporated (MKC)
MIAX Options
McCormick & Company, Incorporated (MKC) has announced a 2 for 1 stock split. Associated strike price adjustments will become effective on Tuesday, December 1, 2020. MKC options will continue to trade without interruption on the MIAX Options Exchange, MIAX PEARL Options Exchange and MIAX Emerald Options Exchange. All GTC orders resting on the MIAX order books in MKC will be canceled at the close of business on Monday, November 30, 2020.
/bit.ly/3mAvvzC

Miami International Holdings Announces Equity Investment in Risk Management Software Company StratiFi
MIAX Options
Full details can be found in the attached press release.
/bit.ly/3mAvvzC

MIAX Exchange Group – Options Markets – Delisting of Unilever N.V. (UN)
MIAX Options
As a result of the unification of Unilever N.V. (UN) and Unilever PLC (UL), Unilever N.V. (UN) will change its symbol to UL1 effective on Monday, November 30, 2020. The MIAX Options Exchange, MIAX PEARL Options Exchange and MIAX Emerald Options Exchange will not list UL1 options and will delist Unilever N.V. (UN) before the open today, Monday, November 30, 2020.
/bit.ly/2VgSEvd

MIAX Exchange Group – Options Markets – Corporate Action Alert: Unilever N.V. (UN) Name and Symbol Change to Unilever PLC (UL)
MIAX Options
Unilever N.V. (UN) will have a name and symbol change to Unilever PLC (UL) effective on Monday, November 30, 2020. All GTC orders resting on the MIAX order books in UN will be canceled at the close of business on Friday, November 27, 2020. NOTE: UL options will trade on Cloud 18 on the MIAX Options Exchange and on Cloud 9 on the MIAX PEARL Options Exchange and the MIAX Emerald Options Exchange.
/bit.ly/3oaQlpP

MIAX Exchange Group – Options Markets – Corporate Action Alert: Natural Grocers by MSC Industrial Direct Co. Inc. (MSM) and Waterstone Financial, Inc. (WSBF)
MIAX Options
MSC Industrial Direct Co. Inc. (MSM) and Waterstone Financial, Inc. (WSBF) have both announced distributions. Associated strike price adjustments will become effective on Monday, November 30, 2020. MSM and WSBF options will continue to trade without interruption on the MIAX Options Exchange, MIAX PEARL Options Exchange and MIAX Emerald Options Exchange. All GTC orders resting on the MIAX order books in MSM and WSBF will be canceled at the close of business on Friday, November 27, 2020.
/bit.ly/3qe78dj

Effective November 30, 2020 through December 4, 2020, MIAX Options and MIAX Emerald 2X Opening and Intraday Valid and Priority Quote Spread Relief in All Symbols
MIAX Options
Issue Symbol: All Symbols
Multiplier: 2X
Reason: In maintenance of a fair and orderly market.
Time: Opening and Intraday
Subject Summary: Please be advised, effective November 30, 2020 through December 4, 2020, the MIAX Regulation Department has granted 2 times opening and intraday quote parameter relief for all symbols on MIAX Options and MIAX Emerald.
/bit.ly/39wvjhg

MIAX Exchange Group – Options Markets – 4 series Made Non-Tradeable for 11/27/2020
MIAX Options
The following series have been made non-tradeable on the MIAX Options Exchange, MIAX PEARL Options Exchange and MIAX Emerald Options Exchanges effective for today, Friday, November 27, 2020:
Option Expiration Strike Price
CRY 7/16/2021 35
AXAS 12/18/2020 7.5
AXAS 3/19/2021 7.5
AXAS 6/18/2021 7.5
/bit.ly/3fYAgAQ

Technology

Miami International Holdings Announces Equity Investment in Risk Management Software Company StratiFi
Miami International Holdings
Miami International Holdings, Inc. (MIH), the parent holding company of the MIAX Options, MIAX PEARL and MIAX Emerald securities exchanges (the MIAX Exchange Group), today announced the completion of a minority equity investment in StratiFi Technologies, Inc. (StratiFi), an upcoming portfolio risk analysis and compliance platform.
/bit.ly/3lnvRIH

Banks to increase spend on post-trade infrastructure after failures in market volatility
Annabel Smith – The Trade
Post-trade investment is set to surge as record derivatives trading volumes led to failures across sell-side post-trade systems earlier this year.
Major investment banks will increase investment in post-trade infrastructure after reporting failures with back-office processes during the market volatility earlier this year. According to a recent survey by Acuti, 95% of tier one and tier two banks are planning to invest more than $1 million in post-trade infrastructure over the next three years, with 45% hoping to invest more than $5 million.
/bit.ly/33vzZAf

Events

Asia Derivatives Conference
FIA.org
Join us virtually in December!
1 December 2020 – 3 December 2020 • 9:00 AM – 3:00 PM SGT Daily
Our annual Asia Derivatives Conference provides unique opportunities for the cleared derivatives community to build an understanding of how global forces and regional trends and issues are shaping Asia-Pacific markets. Register now and join us virtually, 1-3 December, to gain insights into what’s on the horizon for the Asia-Pacific region.
/bit.ly/36HKNMl

Miscellaneous

Bitcoin, Books, Master Class Subscriptions and Other Financial Holiday-Gift Ideas
Suzanne Woolley – Bloomberg
Giving the usual store-bought holiday presents can feel off at a time when so many people are worried about their finances. Perhaps more fitting this season are gifts that set someone on a firmer path to financial independence or help them become a better saver or investor.
/bloom.bg/37msLzB

The stock-market impact of millennial investors has been overblown as trading volumes decline — and it’s actually the older crowd who’s exerted more influence, JPMorgan says
Ben Winck – Business Insider
Older retail investors were “partly responsible” for the market’s price swings through October and November, while younger traders played “a rather modest role,” JPMorgan strategists said Tuesday. While the younger group tends to invest in individual stocks and options, the older cohort more often uses funds to invest. Older investors have been selling equity funds and buying bond funds through most of 2020, acting as a drag on the stock market, the bank said. Retail investors’ trading volumes fell from roughly 23% of all market volume in June to just 16% in September. The decline “raises questions about the narrative” that retail investors were behind the market’s summer rally, JPMorgan said.
/bit.ly/3ob2X04

(Podcast) OIRN ELECTION SPECIAL PART 8: Dr. VIX and The Final Countdown
Options Insider Special Events – Options Insider Network
/bit.ly/2Jobz4t

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