“Alex Perry’s Optionstopia” takes a look at this week’s options news highlights: Ethereum’s Daily Options Volume Matches Bitcoin; Crypto Exchanges Airing Super Bowl Commercials; Cboe’s MATCHNow Technology Migration
Options News Script
This week… the CFTC testifies on crypto monitoring, the Cboe Completes MATCHNow technology migration, and regulators warn against romance trading scams.
This is Alex Perry with John Lothian News, and this is your recap of options news from the week. Here’s some of the week’s top stories, starting with:
1-CFTC Chair to Testify on Cryptocurrencies as Congress Weighs Legislation; Lawmakers are considering whether agency needs additional authority to police market
Paul Kiernan – WSJ
As cryptocurrency continues to soar in popularity, so do concerns. This week, the Commodity Futures Trading Commission (CFTC) wants more authority … to keep a closer eye on crypto. CFTC Chairman Rostin Behnam says that the organization needs at least $100 million more to do the job, according to Bloomberg. The top derivatives regulator already monitors Bitcoin and Ether futures and investigates fraud and manipulation in the crypto markets, Behnam told the Senate Agriculture Committee. With more authority, the CFTC can take on a bigger role. Joining the congressional panel hearing was Sam Bankman-Fried, CEO of the crypto exchange FTX. Serving as a witness, the billionaire crypto entrepreneur tweeted on Wednesday that the hearing was “concrete, bipartisan, and productive,” and he expressed his optimism following the testimony.
2-Crypto Exchanges Make Their Super Bowl Debut at Critical Time
Akayla Gardner and Martine Paris – Bloomberg
Speaking of crypto exchanges, all eyes will be on FTX and Crypto.com as they expect to run crypto advertisements during Sunday’s Super Bowl. The crypto ads will debut to an anticipated audience of 100 million viewers, with a reported price tag of as much as $7 million for a 30-second ad space. Bloomberg reports that since 2020, $112.9 million has been spent on crypto ads, with Crypto.com and crypto exchange FTX spending the most. But FTX is taking its advertising a step further by actually giving out Bitcoin. According to FTX’s Twitter, “The later our Big Game ad airs, the more #bitcoin you can win.”
3-Ethereum’s Daily Options Volume Matches Bitcoin’s for the First Time at $1.1b
Kingsley Alo – The Tokenist
The crypto news doesn’t end there, because Ethereum is moving on up in the options world. The Tokenist reports that for the first time, Ethereum’s daily options trading volume matched Bitcoin, exceeding all-time highs over $1.1 billion. The source also notes that, “This sees Ethereum add another feather to its cap after outperforming Bitcoin last year and becoming the platform with the highest asset flow globally.” Despite the increasing volume, there is still uncertainty in the market, said The Tokenist. The next evolutionary step is more liquid options markets.
4-CME Group Inc. Reports Fourth-Quarter and Full-Year 2021 Financial Results
The CME Group shared its fourth quarter and full year 2021 financial results. In the fourth quarter, the derivatives exchange reported revenue of over $1 billion and operating income of $632 million. The CME Group also shared that the total revenue for full-year 2021 was $4.7 billion, with operating income of $2.6 billion. According to the exchange, “Fourth-quarter 2021 average daily volume (ADV) was 20.5 million contracts, up 26% versus fourth-quarter 2020.”
5-Cboe Completes MATCHNow Technology Migration and Launches its First New Canadian Offering
Cboe Global Markets
This week the Cboe announced a migration between the largest options exchange and MATCHNow. MATCHNow, a Canadian equities alternative trading system, migrated to Cboe technology on Feb. 1. The Cboe says that this was a “year-long effort”, with the options exchange acquiring MATCHNow in August 2020. Also, Cboe launched Cboe BIDS Canada that same day, marking its first new Canadian offering following the MATCHNow integration.
6-CFTC Customer Advisory Warns Online Daters and Social Media Users about Trading Scams | CFTC
In the spirit of Valentine’s Day…what better way to celebrate the day of love than by dodging scams left and right? The CFTC and other U.S. agencies warn users of dating sites about romance scams that lure victims and their money “to fraudulent websites that claim to trade foreign currency exchange (Forex) contracts, precious metals contracts, or digital assets.” The government also wants people to watch for fraudsters, who pretend to be executives, business owners, or successful financiers. They might have pictures of home-cooked meals and pets, but while they’re quick to call or text, they can “conveniently” never video call or meet in person. Over time, the convos shift from getting to know you … to getting to know your wallet.
That’s all for now, but if you want to learn more about dating app scams and Super Bowl Crypto… tune in for this week’s edition of John’s Take. Also, be sure to check out a previous “Options Term of the Week.” Just a friendly reminder that the FIA’s International Futures Industry Conference is fast approaching. The conference will be held March 15-17 in Boca Raton, FL.
THIS HAS BEEN ALEX PERRY FOR JLN. THANKS, AND WE’LL SEE YOU NEXT TIME.