Observations & Insight
****JJL: Ed Tilly and his team at Cboe Global Markets have done it again, buying one of the leading data firms in the markets, Henry Schwartz’s Trade Alert LLC, which happens to be a sponsor of JLN. They are starting to rival ICE’s Jeff Sprecher for having bought the most onetime JLN and MarketsWiki sponsors. To combat this purchasing of JLN and MarketsWiki sponsors, JLN is starting its own data firm in the hopes it will get purchased. Right now it just counts the number of former sponsors that have been bought, but we are working on it.
Trade Alert LLC, now a Cboe Global Markets Company, provides software and services focused on the synthesis and distribution of securities market intelligence to financial professionals. They are some very good data geeks. Cboe had previously bought Hanweck Associates, also a group of very good data geeks.
****MR: In the midst of the unrest surging across the world due to the murder of George Floyd, I – like many of you reading this – have been looking for a way to help this country change for the better. If you share my interest, I’d like to use this space to share links to a couple of organizations that do fantastic work, both of which are accepting donations. The Baltimore Action Legal Team was founded after the Baltimore Riots in 2015 to fight racial injustice by providing legal and educational services to its community. The NAACP Legal Defense and Educational Fund, Inc. does similar work, but at a national level. Also, late night talk show host Conan O’Brien recently interviewed CNN’s Van Jones, asking him to share his thoughts about George Floyd and racial injustice. O’Brien repeatedly stated that he did not think it was his place, as a white man, to dominate a discussion about violence against people of color. Regardless of how you feel about O’Brien or Jones, deliberately handing off the mic to a person of color to talk about their experiences is a powerfully positive gesture, one that I think all of us should consider emulating.
Cboe adds real-time trade alerts and data with latest acquisition; Exchange group Cboe has acquired New York-based Trade Alert to expand information services division in latest takeover.
Hayley McDowell – The Trade
Cboe Global Markets has acquired a real-time alerts and order analysis services provider, which will be integrated across its suite of products within the information solutions division. New York-based Trade Alert was founded in 2005 and provides clients with real-time notifications of market activity and order flow dynamics by combining its software and system architecture with market metrics and computing power.
Someone Just Made a Big Bullish Options Bet on a Singapore ETF
Joanna Ossinger – Bloomberg
An exchange-traded fund tracking Singapore companies drew record call-option volume.
A total of 5,044 iShares MSCI Singapore ETF calls traded on Tuesday, compared with a 20-day average of 222, according to data compiled by Bloomberg. The November $21 calls were the most active, and Susquehanna Financial Group LLLP noted one trade where someone bought 3,800 of those options in odd lots, mostly paying 45 cents each. The U.S.-listed ETF itself rose 2.1% to close at $19.12.
CBOE to delay reopening of Chicago options trading floor by one week
Tomi Kilgore – MarketWatch
CBOE Global Markets Inc. said Wednesday that it was delaying the reopening of its options exchange trading floor in Chicago by one week, because of continued COVID-19-related closures across the city and “limited access” to the area surrounding the CBOE building. The trading floor is now expected to reopen on Monday, June 15, compared with the previous expectation of June 8. The stock rose 0.1% in morning trading. It has dropped 12.3% over the past three months, while the S&P 500 has gained 3.4%.
Dow closes 267 points higher as Wall Street focuses on easing coronavirus lockdowns amid civil unrest
Chris Matthews and Joy Wiltermuth – MarketWatch
The Dow ended higher for a second straight day Tuesday, as investors trained their attention on the prospect of fuller business activity in the wake of the coronavirus pandemic, rather than the fresh round of civil unrest in major U.S. cities.
President Donald Trump reiterated threats to deploy military troops across cities facing protests if governors and local officials prove unable to contain violent demonstrations.
Open Interest in Ether Options Hits Record High on Deribit
Omkar Godbole – Coindesk
Derivative contracts on ether are more popular than ever, as evidenced by record open positions in options listed on the Panama-based derivatives exchange Deribit. Open interest, or the number of contracts outstanding and not yet liquidated by an offsetting trade, rose to a record high of $136 million on Monday, marking a 460% increase from $24 million seen on March 24, according to data provided by crypto derivatives research firm Skew.
Inside Volatility Trading: June 2, 2020
Kevin Davitt – Cboe
Twenty-five years ago (6/2/1995) the Grateful Dead began what would prove to be their final stand at the Shoreline Amphitheater. The Grateful Dead cultivated an exotic and far flung following. There was nothing standardized about their creative approach and it paid off. In the mid-90s, options were still generally considered to be niche tools used by some eccentric types. Similarly, The Dead were stereotyped as an unusual band without broad appeal, despite a considerable and devoted following. My how things have changed in the past 25 years.
Exchanges and Clearing
Cboe Global Markets Acquires Trade Alert, Adding Real-time Alerts and Analytics to Information Solutions Offering
Acquisition of Trade Alert expected to provide real – time notifications and client touchpoints, reaching end users with highly curated information, alerts and messaging through Cboe’s own communications pipeline; Service complements earlier Hanweck and FT Options acquisitions, further bolsters Cboe’s diverse suite of information solutions offerings; Deal closed on June 1, 2020
Cboe Global Markets, Inc. (Cboe: CBOE), one of the world’s largest exchange holding companies, today announced it has acquired the business of Trade Alert, LLC, a real-time alerts and order flow analysis service provider based in New York.
Cboe Global Markets Reports May 2020 Trading Volume
Cboe (press release)
Cboe Global Markets, Inc., one of the world’s largest exchange holding companies, today reported May monthly trading volume. The data sheet “Cboe Global Markets Monthly Volume & RPC/Net Revenue Capture Report” contains an overview of May and year-to-date trading statistics and market share by business segment, volume in select index products, and RPC, which is reported on a one-month lag, across business lines.
Nodal And IncubEx Expand Environmental Markets With Five New Contracts And Twelve REC Vintage Extensions
Nodal Exchange today launched new North American environmental futures and options contracts on the Oregon Clean Fuels Program and renewable energy certificates (RECs). New extended vintages on twelve previously listed REC contracts were also implemented.
Miami International Holdings Reports May 2020 Trading Results and New Daily Market Share Record for MIAX Exchange Group
Miami International Holdings (press release)
Miami International Holdings, Inc. (MIH) today reported May 2020 trading results for its three fully electronic options exchanges – MIAX, MIAX PEARL and MIAX Emerald (together, the MIAX Exchange Group). The MIAX Exchange Group collectively executed over 63.2 million equity option contracts in May for a combined average daily volume (ADV) of 3,160,831 contracts, representing a total U.S. equity options market share of 12.36%.
Regulation & Enforcement
CFTC Charges Kentucky Man in Multi-Million Dollar Fraud Scheme
The Commodity Futures Trading Commission today announced the filing of a civil enforcement action in the Eastern District of Kentucky against defendant William S. Evans III (d/b/a Turning Point Investments) of Harrodsburg, Kentucky, charging him with fraud in connection with soliciting clients to trade S&P commodity futures contracts and options in a commodity pool while failing to register with the CFTC. The Commission’s action also names Evans’ wife, Frances Evans, as a relief defendant in possession of funds from Evans’ alleged illegal activity. On May 29, 2020, U.S. District Court Judge Claria Horn Boom signed a statutory restraining order freezing the Evanses’ assets and prohibiting the destruction or concealment of their books and records.
Here’s why stocks are climbing as protests rage across America
Ben Winck – Markets Insider
After a weekend filled with police brutality protests, looting, and civil unrest, the stock market barely batted an eye. All three major US indexes climbed unabated on Monday and into Tuesday.
Part of that is because the market is – and has always been – a forward indicator. It most directly reflects investor expectations for corporate profit growth. So while the death of George Floyd and resulting protests caught traders off-guard, their lack of anxiety suggests they don’t see the societal unrest as a direct threat to long-term company earnings.