Cboe Options Exchange to List Mini-Russell 2000 Index Options in First Quarter 2021; AMERIBOR Benchmark Offers Options for Bank Capital Raises;

Dec 17, 2020

$18,761/$300,000 (6.3%)
JJL: We had no new donations to our JLN MarketsWiki Education GoFundMe campaign. Support our efforts to preserve industry history by donating to our GoFundMe campaign.

Lead Stories

Cboe Options Exchange to List Mini-Russell 2000 Index Options in First Quarter 2021
Cboe (press release)
Cboe Global Markets, Incl. a market operator and global trading solutions provider, today announced plans to launch trading in Mini-Russell 2000 Index options on Cboe Options Exchange in the first quarter of 2021, subject to regulatory review. With the planned addition of new mini options on the Russell 2000 Index, Cboe continues to expand its offerings of smaller-sized, tradable index products that help enable market participants to gain more efficient and cost-effective exposure to the broad U.S. equity market. The planned launch also underscores Cboe’s longstanding relationship with FTSE Russell, building upon its successful franchise of index-based, cash-settled options tied to the FTSE Russell global indices.

AMERIBOR Benchmark Offers Options for Bank Capital Raises
Dr. Richard Sandor – BankDirector.com
Banks that belong to the American Financial Exchange (AFX) are not waiting until 2021 to make the switch away from the troubled London Interbank Offered Rate, or LIBOR, interest rate benchmark for pricing their offerings in the capital markets.

*****JJL: When the Doc speaks, people listen. I know I do.

Bill Miller Beats S&P 500 for Second Year With Sharp Bet on Uber
Miles Weiss – Bloomberg
Bill Miller’s flagship mutual fund is poised to beat the S&P 500 index for a second straight year, aided by a timely options bet on Uber Technologies Inc. The fund bought into Uber before California voters approved a ballot measure last month exempting gig-economy companies from classifying all drivers and couriers as employees, a change that would have increased costs. Bill MillerPhotographer: David Paul Morris/Bloomberg The stock has jumped more than 50% since the end of October, a rally that gained steam after the ballot win. The Miller Opportunity Trust is up 36% this year through Tuesday, more than double the 16% return for the benchmark, including dividends.

Get Ready for Another Unprecedented Year for the Options Market in 2021
Steven M. Sears – Barron’s
Let it be said that 2020 has been a difficult year, but the troubles created by the Covid-19 pandemic have made us more resilient, self-reliant, and better able to confront adversity. Let it also be said that 2020 solidified the axiom that when bad things happen to stocks, good things happen to options. The pandemic may have roiled the economy, but it also led to evolutionary changes among investors.

Bitcoin options’ daily trading volume crosses $1 billion as bitcoin surges above $23,000
Yogita Khatri – The Block
Bitcoin options’ daily trading volume has crossed the $1 billion mark for the first time, as bitcoin surges past $23,000. Crypto exchange Deribit leads the bitcoin options market, followed by Bit.com and OKEx, according to tracker Skew. Meanwhile, bitcoin is trading hands at around $23,550 on Coinbase, according to TradingView.

Zero Hash Announces Partnership with US Broker tastyworks; US broker dealer tastyworks begins digital asset trading through its partnership with Zero Hash
Zero Hash
Zero Hash, the leader in digital trade settlement, today announced a partnership with tastyworks, one of the fastest growing US equity brokerages, to launch digital asset trading to hundreds of thousands of the most active traders in the world. Through Zero Hash technology, tastyworks clients will be able to trade digital currencies including Bitcoin and Ethereum on the same platform and account that they use for stocks, options and futures.

Exchanges and Clearing

CME/CBOT/COMEX Exchange Transaction Fee Amendments Effective February 1, 2021
CME Group
To Members, Member Firms and Market Users
From Research and Product Development
# SER-8691
Notice Date 17 December 2020
Effective Date 01 February 2021
Effective February 1, 2021, Chicago Mercantile Exchange Inc. (“CME”), The Board of Trade of the City of Chicago, Inc. (“CBOT”), and Commodity Exchange, Inc. (“COMEX”) will increase certain transaction fees as more specifically described in the tables below.

CME Globex Notices: December 14, 2020
CME Group
To CME Globex and Market Data Customers
From Global Market Solutions & Services (GMSS)
# 20201214
Notice Date 17 December 2020

CME STP Notices: December 17, 2020
CME Group
To CME STP Customers
From Global Market Solutions & Services (GMSS)
# 20201217
Notice Date 17 December 2020

MIAX Options Exchange – Revised December 16th SPIKE Settlement Price
Please be advised that the MIAX Options Exchange has revised the SPIKE December 16, 2020 settlement price (SPKCS) from $33.14 to $23.02.


Robinhood Is Not Gamifying Markets. It’s Democratizing Them.
Aaron Brown – Bloomberg
Securities regulators in Massachusetts have decided to attack the popular online brokerage Robinhood Financial LLC, the latest in a long pattern of regulators harassing hugely beneficial innovations. Who can forget the early 1980s, when inflation was running at double-digit rates and banks were prohibited from paying interest on checking deposits, but the Securities & Exchange Commission was fighting money market funds?

Webinar: Enabling Trading Success In The Cloud
Ollie Cadman – Vela blog
There has been a lot of focus on trading firms and exchanges migrating their technology platforms to the cloud as a means of streamlining infrastructure, reducing costs, and refreshing architecture. Yet, one of the key benefits is the ability to rapidly test and validate new business ideas, strategies, and markets to know where to concentrate on investment time, money, and resources.

*****MR: Please note this is the recording of a webinar, not an ad for a future event.


Roundtable Discussion: Trading Opportunities in European Volatility with VSTOXX Derivatives
Topic – Roundtable discussion: Trading Opportunities in European Volatility with VSTOXX Derivatives
Description – Join Eurex, RCM-X, Shore Capital Research and Equity Armor Investments for a webcast discussion on:
1. Why volatility is so relevant in today’s markets?
2. What factors could influence the spread between VSTOXX & VIX volatility indices? Are these spreads seasonal or event driven? Could traders find a way to incorporate this data into their daily trading? What events in the near to mid-term will affect these spreads?
3. Besides the spread trading opportunity (VSTOXX vs VIX), what other trading opportunities may arise out when considering the VSTOXX?
4. Why is there a negative correlation between VSTOXX, volatility Indices and the equity markets? Does this behavior offer potential opportunities to hedge an equity portfolio?
Dec 16, 2020 11:00 AM in Central Time (US and Canada)

2020 Annual Trends in Futures and Options Trading
27 January 2021 • 10:30 AM – 11:30 AM ET • Webinar
This webinar will highlight the main trends in trading activity in 2020 in the global exchange-traded derivatives markets, with category and regional breakdowns as well as exchange and contract rankings.
Moderator: Will Acworth, Senior Vice President of Publications, Data & Research, FIA


(Podcast) OBC 116: Trading Juicy Skew in TSLA, NIO, AAPL and more
Options Boot Camp – Options Insider Network
On this episode, Mark and Dan explore how options traders can take advantage of elevated volatility skew in popular names like Tesla, Apple and NIO.

John Lothian Newsletter

We visit more than 100 websites daily for financial news (Would YOU do that?)

“John Lothian and Company… our industry intelligence.”

Rick Lane

CEO, Trading Technologies

Past Options Newsletters

Pin It on Pinterest

Share This Story