Banks, Brokers & Managed Funds
FIA Asia-V: Call for Greater Operational Efficiency Unanimous, But ‘We Need a Few Heroes’
The COVID-19 pandemic and the period of intense volatility that followed its initial onslaught highlighted gaps in the infrastructure that supports global exchange-cleared derivatives systems. But those glitches have been at play for a while and need to be addressed, panelists at FIA’s Asia-V said.
In a panel on operational efficiencies during day two of the conference, Don Byron, FIA’s head of global industry operations and execution, pointed to the group’s November 2021 “Blueprint” plan to modernize trading processes.
FIA Expo 2021 Video: ‘Everyone is Threatened’ by Disintermediation
Robert Fitzsimmons, executive vice president at Wedbush Securities, spoke with John Lothian News at FIA Expo 2021 about his observations, insights and opinions on everything from the conference itself to the state of cryptocurrency today. As executive vice president, Fitzsimmons manages futures, fixed income groups, and securities lending.
Among the talking points from the conference, one topic of concern was the notion of disintermediation, which essentially cuts out the middle men — removing banks, brokers, or other third parties — allowing individuals to invest directly.
FIA Expo: CFTC’s Dawn Stump Urges Return to Basics When Regulating Crypto, Carbon Markets
In a keynote address at the FIA Expo on Wednesday, CFTC Commissioner Dawn Stump urged the industry, and regulators, to go back to the basics in their discussions of who should oversee digital assets and how they should be overseen before “engaging in a jurisdictional power-grab.”
Trading Technologies to Be Acquired by 7RIDGE
Press release from Trading Technologies: Trading Technologies International, Inc., (TT), a global provider of high-performance professional trading software, infrastructure and data solutions, today announced that the company has agreed to be acquired by 7RIDGE, a specialized growth equity firm invested in transformative technologies. 7RIDGE will fuel Trading Technologies’ organic growth and enable the firm to make targeted strategic acquisitions in the future. Cboe Global Markets, Inc. (Cboe: CBOE) and Singapore Exchange (SGX), who are among the limited partners of the fund managed by 7RIDGE, have voiced their support of the transaction. Terms of the transaction, expected to close before year-end subject to regulatory approvals, were not disclosed.
Crypto Steals Headlines With Cboe-ErisX Deal, U.S. Bitcoin ETF; John’s Take Connects With ICE Mortgage Tech; A Look at Cash-Secured Puts – The Spread – October 22, 2021
– Crypto edges into the mainstream with Cboe-ErisX acquisition announcement, first-ever bitcoin U.S. ETF debut; SEC’s GameStop study a reflection without regulation;
– John’s Take reviews the data-driven mortgage experience with ICE Mortgage Technology;
– Are you bullish on a stock? The Term of the Week looks at a cash-secured put strategy with Jermal Chandler.
Trillions Is a History Lesson for Anyone Involved in the Markets
Robin Wigglesworth loves history. He is the author of a new book on the history of passive investing titled, “Trillions; How A Band Of Wall Street Renegades Invented The Index Fund And Changed Finance Forever.”
Wigglesworth spoke to John Lothian News over Zoom from Oslo, Norway where he is stationed as a correspondent with the Financial Times. We interviewed him about this first book he has written and why he wrote it.
FIA Tech’s Atlantis Ready for More Options Brokers
FIA Tech is trying to solve a problem for options brokers with a solution that’s worked for futures brokers and exchange-traded derivatives. That problem is improving the efficiency of give-ups and take-ins reconciliation, settlement and payments.
In July, FIA Tech announced the expansion of its Atlantis service to help options brokers settle give-up trades faster and get paid sooner, while freeing up human resources thrown at this complex problem. One hundred million contracts a month are processed via Atlantis, which is expanding into options in a two-part process.
Morningstar Scaling Up Against Industry Dominators
The index business is dominated by three big companies: Dow Jones Indexes, FTSE Russell, and MSCI; but there is a Chicago index company that has big plans to advance and scale up its business to bring more value to index clients and leave more money in the pockets of investors. Former FTSE Russell executive and now Morningstar Indexes Managing Director Ron Bundy is charged with the evolution and growth of Morningstar Indexes.
Higher Bond Yields, Energy Fuel Continued Market Volatility at Quarter End; John’s Take Looks at Recent CFTC Action; Why VVIX Matters – The Spread – October 1, 2021
– Stock market volatility continues to chug higher; Energy prices are hot;
– John’s Take walks us through the CFTC’s filing against 14 crypto options businesses;
– A timely look at the VVIX, the volatility of volatility with Russell Rhoads in the Term of the Week.
FIA IDX 2021 Panel: More Exchange-Traded Products On Path to Sustainability
Environmental markets are “transitioning to an asset class in their own right,“ said Gordon Bennett, managing director of utility markets for ICE and a panelist at a FIA IDX’s Tuesday presentation, “Exchanges and the Roll Out of New Sustainability Products.”
“They’ve changed a lot in the last two to three years” and are not just about carbon markets anymore, Bennett said. “Clearly, more people are getting involved” in ESG-related markets, Bennett added, noting that data in the CFTC’s Commitments of Traders Reports are starting to reflect a wider diversity of market participants.
Alan van Griethuysen’s Dutch Path to Electronic Trading
Alan van Griethuysen wanted to be an officer in the Netherlands Royal Army, following in the footsteps of his father, who was a full colonel in the military police.
However, when he took a one-year leave while in school and worked in hotels in England, it started a path that led him to the options exchange in Amsterdam. That first job as a price reporter began a tenure of 32 years at the exchange, which saw many changes during van Griethuysen’s time.
Multiple options expirations add to September market gyrations; Who are the smartest traders in the room?; Strike price pick no simple matter; The Spread – September 17, 2021
– Options markets take a bumpy ride ahead of simultaneous options and futures expirations;
– John’s Take looks at why it’s the smartest traders in the room who trade options;
– Two crucial concepts in strike price choices with Jermal Chandler in the Term of the Week.
Options Veterans Forge New Path With Tried-And-True Strategy
As its name suggests, Options Solutions is an options-centric asset-management firm that aims to increase the returns of investors’ portfolios with customized options strategies. JLN’s John Lothian and Suzanne Cosgrove recently interviewed the founders of the new enterprise, described by CEO Michael Brodsky as an early-stage, high-growth company. Team members are led by former CBOE Chairman and CEO Bill Brodsky, as well as Michael, his son, and options industry strategist Steve Sears.
GameStop disappoints; Coinbase gets into it with the SEC; Cboe offers Europe options; MIAX Spikes a record; John’s Take on CBOE’s Phil Slocum’s passing and a great moment in options history; and how to execute a strangle — The Spread — September 10, 2021
– Options markets get ready for fall’s chill as equity prices consolidate; Another perspective on small investors;
– John’s Take pays homage to an options veteran and looks at a moment in options market history;
– Pros and cons of using options strangles with Jermal Chandler in the Term of the Week.
CME Buying Cboe? Options News, John’s Take and Term of the Week in The Spread – August 20, 2021
— Will CME Group finally buy Cboe Global Markets?; Options volume outpaces exchange-traded derivatives action; Will the Fed taper sooner or later?; Volatility comes back as August options expire;
— John Lothian talks about Cboe sharks, MIAX SPIKES and remembers Philip McBride Johnson;
— Tastytrade’s Jermal Chandler explains why you need to keep a close watch on gamma in the “Term of the Week.”
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The curious case of rising stocks in the night-time
First Read Hits & Takes John Lothian & JLN Staff Congratulations to uber journalist Jacob Bunge on being promoted to the role of Chicago deputy bureau chief for The Wall Street Journal. Bunge has been with the Journal since 2008, when he came over from...
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The Spread
Stock Market Selloff Worries Investors & Regulators; Adam Dell Launches Domain Money; CME Group Announces Records
ALEX PERRY’S OPTIONSTOPIA: Alex Perry’s Optionstopia” takes a look at this week’s options news highlights: Regulators Crack Down on Trading apps; Adam Dell Launches Domain Money; The CME Group Announces New Options Records
JOHN’S TAKE: John talks with Henry Schwartz, president of Trade Alert LLC, for “John’s Take”
TERM OF THE WEEK: What is The VIX Index Anyway? with Russell Rhoads
Stock Markets: Time to Bet Against VIX After Recent Rising Streak, History Says
Lead Stories Stock Markets: Time to Bet Against VIX After Recent Rising Streak, History Says Akshay Chinchalkar and Joanna Ossinger - Bloomberg Seven straight jumps in the so-called "fear gauge" for the S&P 500 is a signal that it may be time to wager against...