CME jumps into Cboe’s pool
Lynne Marek – Crain’s Chicago Business
The futures exchange operator is getting into the volatility business in part because another key business is slumping.
Chicago futures exchange operator CME Group is getting into the volatility business, with plans to launch a volatility index futures contract in October, the Chicago company said.
Bitmain spin-off’s crypto exchange to launch bitcoin options as pricing competition heats up
Frank Chaparro – The Block
A new player in the crypto derivatives space is launching bitcoin options as that particular corner of the market continues to heat up. Bit.com, the derivatives trading venue backed by Matrixport, told The Block Wednesday that its options product is set to launch next week. Bit.com went live at the beginning of August, as reported by The Block’s Yogita Khatri.
CCPs and FCMs in Asia Pacific discuss lessons learned from the crisis
Kirsten Hyde – FIA.org
The global pandemic and rocketing transaction volumes and volatility that immediately followed created unprecedented challenges for cleared derivatives markets across many elements of the trading cycle. However, a panel of senior managers at exchanges and execution and clearing providers in Asia Pacific expressed a shared view that the industry performed remarkably well despite the extraordinary pressures it faced.
Rampant bitcoin gives crypto hedge funds a big lift
Eva Szalay and Camilla Hodgson – Financial Times
Hedge funds focused on cryptocurrencies are on a hot streak, having managed to navigate choppy markets much better than peers focused on more mainstream assets such as stocks and bonds.
Crypto fund managers have returned more than 50 per cent over the seven months to the end of July, compared with the low single-digit gains that hedge funds generated across traditional classes of assets, according to data provider Eurekahedge. Last year crypto hedge funds gained 16 per cent, again outshining mainstream hedge funds, which were up 9 per cent.
The most popular Robinhood stocks outperform their less-traded peers, according to a new JPMorgan study
Matthew Fox – Markets Insider
Do Robinhood traders move the market in the stocks that they buy?
That’s the main question JPMorgan set out to answer in a research study that used data from Robintrack.net, which tracks the number of Robinhood accounts that own, buy, or sell a particular stock.
Exchanges and Clearing
CME Group Announces Record Precious Metals Volumes on August 11
CME Group, the world’s leading and most diverse derivatives marketplace, today announced that Precious Metals markets reached a record volume of 1.55 million contracts on August 11, surpassing the previous record of 1.51 million set February 28, 2020. A record 397,000 Silver futures contracts were traded on August 11, 2020, surpassing the prior record of 329,000 set on August 7, 2020.
MIAX Exchange Group – Options Markets – Delisting of voxeljet AG (VJET)
MIAX Exchange Group
voxeljet AG (VJET) will be de-listed from the MIAX Options Exchange, MIAX PEARL Options Exchange and MIAX Emerald Options Exchange effective on Friday, August 14, 2020. All GTC orders resting on the MIAX order books in VJET will be canceled at the close of business on Thursday, August 13, 2020.
CME Globex Notices: August 10, 2020
Initial Listing of the Nasdaq-100 Volatility Index Futures Contract
Effective Sunday, October 4, 2020, for trade date Monday, October 5, 2020, and pending all relevant CFTC regulatory review periods, Chicago Mercantile Exchange Inc. (“CME” or “Exchange”) will list the Nasdaq-100 Volatility Index Futures contract (the “Contract”) for trading on the CME Globex electronic trading platform (“CME Globex”) and for submission for clearing via CME ClearPort as more specifically described below.
Regulation & Enforcement
REMINDER: PROHIBITION ON USE OF CAMERAS AND VIDEO EQUIPMENT ON THE TRADING FLOOR
In connection with this week’s reopening of the Eurodollars options pit, all members, member firms, and employees of the foregoing are reminded of the strict prohibition on the use of any type of camera or video equipment on the trading floor.
IMF, World Bank recommend changes to U.S. supervision of CCPs
Jeff Reeves – FIA.org
The Financial Sector Assessment Program, a joint effort between the International Monetary Fund and the World Bank, has issued its latest review of the United States on 10 August. While the full assessment covered the entire U.S. financial system, the review also included a technical note entitled, “Supervision of Financial Market Infrastructures, Resilience of Central Counterparties and Innovative Technologies.” That note highlighted specific challenges for the supervision of derivatives clearinghouses including “resource constraints” at the Commodity Futures Trading Commission as well as the agency’s approach to consultation on rule changes at systemically important central counterparties.
Daily Average Fugazi’s: Robinhood Postures for IPO
Paul Rowady – Alphacution
On Monday, August 10 at exactly 11am EDT (you know, after the opening bell was safely in the rearview mirror), Robinhood Markets, Inc. – the anti-incumbency insurgent trading app platform and self-proclaimed democratizer of all things financial – set out to dominate the week’s financial news cycle by enticing media powerhouse, Bloomberg, to drop a news bomb into an ecosystem already negligently over-stimulated on the topic: “Robinhood Blows Past Rivals in Record Retail Trading Year.”
Disney Stock May Still Have Some ‘Plus’ Left. How to Play It.
Steven M. Sears – Barron’s
In early July, we suggested that Walt Disney stock was undervalued and that investors were missing a material development that could lead it higher.
At the time, investors were shunning the stock (ticker: DIS) because theme parks were shut down, movie theaters were closed, and the company was struggling amid the Covid-19 pandemic.
Kamala Harris is Biden’s running mate—here’s what she means (and doesn’t mean) for financial markets
Mark DeCambre – MarketWatch
Presumptive Democratic presidential nominee Joe Biden announced Tuesday that he has selected California Sen. Kamala Harris as his running mate in the race for the White House against President Donald Trump and Vice President Mike Pence.
The markets have been unperturbed thus far about the pick of the first Black American woman and the first person of Indian decent to appear on the ticket of a major national party—and, perhaps, for a good reason,
The Calm During the Storm: An Unusual Summer of Trading
Phil Mackintosh – TABB Forum
If we take a closer look, all is not as calm as it seems. Despite the reduction in realized (actual) volatility, and the onset of the summer months, trading activity and the VIX remain stubbornly elevated. Average daily volumes are still around 40% above last year’s levels and consistently over 10 billion shares per day. The VIX remains above 20, now almost double the level of realized volatility.