Cboe combines MATCHNow and BIDS for new block trading platform in Canada

Jun 17, 2021

Observations & Insight

Walt Lukken and Nick Solinger Explain FIA Tech Investor Deal

FIA Tech announced yesterday a deal to take on 10 global banks as investors in the company in order to grow the for-profit FIA-affiliated firm. John Lothian interviewed FIA Chairman and CEO Walt Lukken and FIA Tech President and CEO Nick Solinger over Zoom about the deal.

Watch the video »

Lead Stories

Cboe combines MATCHNow and BIDS for new block trading platform in Canada; Cboe LIS powered BIDS in Canada will combine MATCHNow and BIDS to create a market center for block-sized liquidity for buy-side and sell-side participants.
Annabel Smith – The Trade
Exchange operator Cboe Global Markets has confirmed plans to combine MATCHNow and BIDS Trading and launch a block trading platform in Canada after recently acquiring both firms.

Crypto Price Mayhem: Data Reveals Bitcoin Is Braced For A ‘Short Squeeze’
Billy Bambrough – Forbes
Bitcoin traders and investors are still reeling from a steep sell-off that’s wiped around $1 trillion from the combined cryptocurrency market.
The bitcoin price has crashed from almost $65,000 per bitcoin to under $40,000 despite a flood of positive bitcoin news in recent weeks—including Twitter chief executive Jack Dorsey teasing a bitcoin payments plan.

‘Big Short’ investor Michael Burry is back on Twitter – and warning of the biggest market bubble in history
Theron Mohamed – Insider
Michael Burry said markets were in a bubble of unprecedented scale; The “Big Short” investor tweeted his dire warning after a 10-week break from Twitter; Burry has flagged reckless speculation on Tesla stock, bitcoin, and other assets.
Michael Burry on Tuesday warned of the biggest market bubble in history, suggesting that his concerns about rampant speculation only grew during his 10-week hiatus from Twitter. “People always ask me what is going on in the markets,” the investor tweeted. “It is simple. Greatest Speculative Bubble of All Time in All Things. By two orders of magnitude. #FlyingPigs360.”

Fed Spurs Goldman, Deutsche Bank to Abandon Bullish View on Euro
Susanne Barton – Bloomberg
The Federal Reserve’s hawkish turn prompted both Goldman Sachs Group Inc. and Deutsche Bank AG to abandon their calls that the euro will rally against the U.S. dollar.
The euro dropped as much as 1.1% to 1.1994 per dollar on Wednesday — the biggest tumble since April 2020 — after policy makers signaled the Fed would boost interest rates twice by the end of 2023, which surprised markets. Some even forecast a move next year. The currency breached 1.20, which suggests to some traders that more losses are coming.

GameStop is headed for inclusion in a large-cap stock index after its dizzying surge to record heights – but AMC will miss out with its spike coming after the deadline
Natasha Dailey – Markets Insider
GameStop could be one of the newest stocks on a list of the 1,000 largest companies thanks to the army of retail traders that have pushed the share price to dizzying highs.
But AMC Entertainment might have just missed the cutoff.


Cboe Plans to Launch Enhanced Block Trading Service in Canada, Further Expanding BIDS Trading Globally
Cboe Global Markets, Inc.
Planned offering builds on success of Cboe LIS, one of the largest block trading platforms in Europe;Integrates capabilities from MATCHNow and BIDS Trading – two industry leaders in block trading;Adds to Cboe’s growing suite of products and services in geographies beyond the U.S.; Enables expansion of BIDS’ block trading platform into Canada
Cboe Global Markets, Inc. (Cboe: CBOE), a market operator and global trading solutions provider, today announced plans to launch Cboe LIS powered by BIDS in Canada, bringing to the region an enhanced block trading service based on a successful model that it first introduced in Europe with BIDS Trading. Planned for launch on February 1, 2022, the new Canadian offering, which is subject to regulatory approval, will combine industry-leading block trading capabilities from MATCHNow and BIDS to create an enhanced market center for block-sized liquidity for buy-side and sell-side participants. With its expansion into the Canadian market, Cboe will also continue to extend its global equities block trading network to new geographies beyond the U.S. and Europe.

Exchange to Boost Crypto Derivatives Access With Fundraising
Joanna Ossinger – Bloomberg
Decentralized derivatives exchange SynFutures announced the close of an oversubscribed round of financing as it seeks to make cryptocurrency futures more accessible.
The $14 million Series A round of financing led by Polychain Capital LLC included participation from Framework, Pantera Capital, Bybit, Wintermute, CMS, Kronos, and IOSG Ventures.

Euronext resolves derivatives trading glitch after four-hour outage
Saikat Chatterjee – Reuters
Pan-European financial markets operator Euronext (ENX.PA) said on Thursday that it had resolved the technical glitches which knocked out index derivatives trading for nearly four hours earlier in the day.

Polychain, Pantera Back $14M Funding Round for DeFi Derivatives Platform SynFutures
Decentralized finance (DeFi) derivatives exchange SynFutures raised $14 million in a Series A funding round led by Polychain Capital, SynFutures announced Wednesday.
As DeFi continues to gain in popularity, investors look to capture niche markets within the industry. SynFutures said it will focus its entire platform on derivatives, which are financial instruments like futures contracts or options. The funding comes fresh on the heels of a $65 million capital raise for fellow DeFi derivatives exchange dYdX.

Regulation & Enforcement

SEC delays ruling on Bitcoin ETF; The agency is seeking more public comment on a proposal to list a Bitcoin exchange-traded fund on Cboe.
Bloomberg News
U.S. regulators have once again punted their decision on whether to approve a Bitcoin ETF. The Securities and Exchange Commission said in a Wednesday regulatory filing that it will seek more public comment on a proposal to list a product on Cboe Global Markets Inc. It’s not the first time this year that the SEC has delayed giving an answer to the legions of crypto advocates pushing for a way to trade the largest cryptocurrency in an exchange-traded fund format.

Cybersecurity: Senators draft bill that would require many entities to report breaches within 24 hours
Brian Fung and Alex Marquardt – CNN
US lawmakers are preparing legislation that would require a vast range of public and private entities to alert the government within 24 hours of a cybersecurity breach, following a wave of ransomware attacks that have threatened the nation’s economic and national security.
The bipartisan draft by Sens. Mark Warner, a Virginia Democrat; Marco Rubio, a Florida Republican; and Susan Collins, a Maine Republican, reflects a renewed effort by Congress to pass long-awaited federal rules surrounding cybersecurity breach notifications. There is currently no single federal standard, which critics have said for years is a hindrance to protecting the nation from cyberattacks.

The SEC has delayed its decision to sign off a bitcoin ETF a second time, citing concerns over potential market manipulation
Anna Cooban – Markets Insider
The US securities regulator has delayed a decision on whether to approve a bitcoin exchange-traded fund (ETF) for a second time, due to its concerns over the potential for manipulation in the cryptocurrency market.
The Securities and Exchange Commission (SEC) had been considering a proposal from options exchange Cboe Global Markets since March to list a bitcoin ETF through asset manager VanEck Associates that would allow the world’s largest cryptocurrency to be traded among mainstream financial institutions.


Betting on Oatly Stock With a ‘Short Strangle’
Steven M. Sears – Barron’s
Lovers of meat and milk may recoil, but plant-based foods are becoming a permanent part of the mainstream global diet. Plants may ultimately even provide us with much of our sustenance without our palates ever knowing the difference.
Beyond Meat (ticker: BYND) introduced Wall Street to a new kind of meat, and Oatly Group (OTLY) has popularized a plant-based dairy product.

Should We Be Concerned With Low Volatility in FX?
Rick Steves – Finance Feeds
FinanceFeeds has always called for a multi-asset approach within the FX industry and, fortunately, that has been the trend among the leading brokers
Volatility has become one of the most discussed topics across the FX industry as we witness new and palpable dynamics with the expansion of stock offerings and the introduction of crypto trading.
Those changes were quite visible in 2020 as the pandemic drove many new investors to open accounts with brokers to gain exposure to the extreme volatility, especially in March and April, particularly in stocks, cryptos, and oil as foreign exchange instruments suddenly lost their appeal.


NYSE Summer Series Launching on June 21 to Celebrate New York’s Reopening
The New York Stock Exchange, a wholly-owned subsidiary of Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology and market infrastructure, today announced the launch of NYSE Summer Series, which celebrates the reopening of New York and the front-line workers and organizations that made it possible.
The series, which will run through Labor Day, brings the elements of trading floor excitement at the NYSE to Experience Square, the 7,000-square-foot cobblestone streetscape in front of the historic exchange building on Broad Street in lower Manhattan.


The Commodities Boom Is Luring Criminals to Make Bigger and Bolder Scores
The pandemic, soaring prices, and economic pain have combined to create perfect conditions for thieves and fraudsters.
Agnieszka de Sousa, Marcy Nicholson, Tope Alake, Daniels Sirtori-Cortina – Bloomberg
Sergeant Tosha Ternes spends most of her time at the Saskatoon Police Service investigating cases of breaking and entering. In recent months her department has seen a “drastic” increase in one type of crime: lumber theft from construction sites. “Everything’s just lying there, kind of like a free-for-all,” Ternes says from the Saskatchewan city in Canada’s prairie region. “Some sites have been hit two, three, four times.”

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Past Options Newsletters

The Spread – July 30, 2021

The Spread – July 30, 2021

Earnings season in full bloom; Options lead year-to-date derivatives volume; Robinhood’s IPO; John gets real with Get Real VR: Conflicting factors underpin volatility; Cboe cleared for fall European competition; and the Cboe Options Institute’s Kevin Davitt talks about vega in this week’s “Term of the Week.”

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