Cboe Global Markets Plans to Launch New U.S. Treasuries Trading Platform

Nov 4, 2021

Observations & Insight

Here is the YouTube video of yesterday’s EXPO exchange leaders panel featuring CME’s Terry Duffy, ICE’s Jeff Sprecher and Cboe’s Ed Tilly

Lead Stories

Cboe Global Markets Plans to Launch New U.S. Treasuries Trading Platform
Cboe Global Markets
New interdealer trading platform for U.S. Treasuries leverages proven capabilities of Cboe; Designed to provide high-quality order flow, reduced market impact and price improvement opportunities; Unique trading model combines Cboe’s Full Amount technology with custom liquidity and analytics
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced plans to introduce a new dealer-to-dealer electronic trading platform for On-The-Run U.S. Treasuries. The platform (“Cboe Fixed Income”) will be Cboe’s first cash U.S. Fixed Income product offering, further diversifying and expanding its products, services and technology offerings into new markets and geographies around the world. Cboe Fixed Income is planned for launch in the second quarter of 2022, subject to regulatory approvals.
/jlne.ws/3GJVdwl

Options Activity Tied to Avis, Meme Stocks Explodes
Gunjan Banerji – WSJ
Traders are rushing to place options bets on Avis Budget Group Inc. and other meme stocks.
Options activity tied to Avis surged to the highest level in at least three years on Tuesday and the heavy trading continued Wednesday.
/jlne.ws/3bHvczp

Bond Bears Ready to Pounce With Powell Seen Lagging Behind Curve
Garfield Clinton Reynolds – Bloomberg
The calm market reaction to the Federal Reserve’s taper announcement could well be the eye of a storm as traders refuse to back down from betting that central bankers are too complacent about the threat of out-of-control inflation.
Money markets are betting the Fed will raise interest rates by around 17 basis points by June, odds that were little changed into and out of this week’s meeting. Demand strengthened for downside eurodollar hedges — a signal investors are eager for protection against more aggressive bets on further rate hikes.
/jlne.ws/3GNko0W

European bond volatility spikes on inflation standoff
Tasos Vossos and James Hirai – Bloomberg
A standoff between European bond traders and the central bank has unleashed turbulence across debt markets.
Volatility measures for euro investment-grade and junk debt and Italian bonds have spiked to multi-month highs. An iShares corporate bond ETF, Europe’s largest credit fund, endured the biggest swings since April.
/jlne.ws/3o1bPXA

Opinion: Russell 2000’s breakout is significant for stock-market bulls
Lawrence G. McMillan – MarketWatch
The S&P 500 index continues to make new closing and intraday highs nearly every day — it has made a new intraday and/or closing all-time high on nine of the last 10 trading days.
It has been joined in these endeavors by the NASDAQ-100 and the Dow Jones Industrial Average
/jlne.ws/3q7xbFB

Exchanges

Google Invests $1 Billion in Exchange Giant CME, Strikes Cloud Deal; Tie-up gives Google’s cloud arm a prize client in financial services
Alexander Osipovich – WSJ
Alphabet Inc.’s GOOG 0.50% Google has invested $1 billion in futures-exchange giant CME CME 3.46% Group Inc. and struck a deal to move the company’s core trading systems to the cloud. Under the deal, the technology giant’s Google Cloud unit would eventually power markets that handle trillions of dollars in trades each day. The companies said Thursday that their 10-year partnership would allow CME to bring on new users faster, streamline operations and develop new tools with Google technology, such as artificial-intelligence software for monitoring market risks.
/jlne.ws/3EEHFA8

CME Group expands derivatives offerings with launch of Micro Ether Futures; New futures will provide market participants with an efficient way to hedge their spot ether price risk and more easily execute ether trading strategies.
Wesley Bray – The Trade
CME Group is set to expand its crypto derivatives offerings with the introduction of Micro Ether futures on 6 December. The Micro Ether futures are sized at one-tenth of one Ether and will provide market participants with an efficient way to hedge their spot ether price risk and more easily execute ether trading strategies.
/jlne.ws/3k3XHf8

Miami International Holdings Reports October 2021 Trading Results; MIAX Pearl Equities Sets Market Share and Volume Records; SPIKES Futures Volume Reaches Record Levels
MIAX
Miami International Holdings, Inc. today reported October 2021 trading results for its U.S. exchange subsidiaries – MIAX, MIAX Pearl and MIAX Emerald (together, the MIAX Exchange Group) and Minneapolis Grain Exchange (MGEX).
/jlne.ws/2K3gU18

Eurex takes important step into USD swap market
Eurex
Eurex is partnering with several banks to strengthen its USD clearing services. Deutsche Bank, J.P. Morgan, and LBBW are now the first movers providing electronic Eurex USD prices on Tradeweb’s interest rate swaps platform, with further banks preparing to start streaming soon. This is in addition to the already established request for quote and voice market for Eurex USD swap prices.
/jlne.ws/2ZWCKMo

Euronext publishes Q3 2021 results
Euronext
Strong revenue growth, driven by double digit organic growth in listing, trading and clearing activities, and significant contribution of the Borsa Italiana Group.
/jlne.ws/3bH5ESV

Strategy

Wall Street Likes Gridlock in D.C. Here’s How to Play It.
Steven M. Sears – Barron’s
The greatest investment opportunity in the world might be America’s political dysfunction and division.
The outcome of various state elections on Tuesday suggests that the November 2022 midterm Congressional elections might lead to even more gridlock in Congress. If that happens, the stock and options market should flourish as investors position for the end of legislation that targets businesses and the wealthy.
/bit.ly/3nRcTNG

Miscellaneous

Millennial ownership of stocks has jumped, but they still only own 2.5% of the market even as the pandemic spurred a wave of new investors
Natasha Dailey – Markets Insider
Even though young retail traders have made headlines for charging into financial markets amid the COVID-19 pandemic, they still own just a small percentage of stocks.
Millennials, who are 25-40 years old, own about 2.5% of stocks, equating to about $1 trillion, according to Federal Reserve data from the second quarter this year.
/jlne.ws/3q8dA8m

Stock Market Trading Strategy, Lessons From $343,000 Gain: Daniel Chan
Marley Jay – Business Insider
There are countless ways to invest. With so many options and approaches, it’s easy to think you have to be an expert before you start — and then never start.
But Daniel Chan illustrates that learning as you go can be very effective. Over the last five years he’s built a portfolio of six accounts that’s delivered a 258% return, meaning that since March 2016 he had outperformed the S&P 500 by more than 100 percentage points as of November 3, and booked a gain of $343,028.30.
/jlne.ws/3BPG88G

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