Exchange provider CME Group expects bitcoin options to be a hit with Asian cryptocurrency traders, miners
Georgina Lee – Yahoo Finance
CME Group said it expects the upcoming launch of options on bitcoin futures contracts to draw big demand from cryptocurrency miners and traders in Asia.
The US futures exchange is aiming to launch the new crypto-derivative product during the first quarter of 2020.
Tim McCourt, CME Group’s global head of equity products and alternative investments, said he expects the new contracts to prove as popular as bitcoin futures, which were launched almost two years ago. As much as half of trading volume for futures is accounted for by Asian and European participants.
Stock Traders Pay Biggest Premium to Shun Volatility in 41 Years
Justina Lee – Bloomberg
Wall Street banks have labeled them expensive, crowded and dangerous. Yet the boom in low-volatility stocks is intensifying.
Globally the investing style has now clawed back virtually all the losses it notched in the late-September rout for defensive quant trades. Calmer American shares have reached the priciest in 41 years compared with capricious counterparts, according to a Citigroup Inc. study into the low-beta factor.
Conflicting Trade Signals Rock Markets With Hours of Chaos
Joanna Ossinger – Bloomberg
Even for investors hardened by more than a year of trade-war headlines, it’s been a chaotic few hours. Conflicting signals on the prospects for a deal between the U.S. and China sent S&P 500 futures on one of their wildest rides in recent memory, triggering four 1%-plus swings in contracts that track $24 trillion of U.S. equities in a span of three hours.
One Investor Is Buying Options Protection on the S&P 500
Bloomberg News’s Greg Calderone discusses one investor buying options protection on the S&P 500 ahead of the weak ISM print. He speaks with Abigail Doolittle on October 1st.
Pound Jumps Most in Six Months as Brexit Mood Turns Optimistic
William Shaw and Michael Hunter – Bloomberg
The pound rallied the most against the dollar since March on signs that Britain and the European Union are edging closer to an agreement on the core sticking points in negotiations around Brexit. There may be more gains to come. One-week options turned the most positive on sterling since early January after U.K. Prime Minister Boris Johnson and his Irish counterpart Leo Varadkar said they could see a pathway to a possible divorce deal following crunch talks in northern England.
Exchanges and Clearing
Fourth Straight NASDAQ Patent Invalidated by PTAB in Favor of MIAX
Press Release via Yahoo Finance
Miami International Holdings, Inc. (MIH), the parent holding company of the MIAX Options, MIAX PEARL and MIAX Emerald exchanges (MIAX), today announced that a fourth Nasdaq patent asserted against MIAX as part of its infringement complaint has been found invalid by the Patent Trial and Appeal Board (PTAB) of the United States Patent and Trademark Office. The PTAB ruled in its final written decision that all 38 claims of Nasdaq’s U.S. Patent No. 7,747,506 are unpatentable under 35 U.S.C. Section 101.
Tradeweb reports record trading volume on third-quarter volatility
Kate Duguid – Reuters
Fixed income trading platform Tradeweb Markets (TW.O) on Thursday reported record volumes in the third quarter as market volatility driven by the U.S.-China trade war and global rate cuts bolstered activity during the normally sluggish summer months.
Average daily volume across all asset classes was $815 billion in the last quarter, a 53.3% increase from the same period a year ago. The gains were partly driven by its interest rates business, which was up 64.5% year over year.
Euronext announces new three-year strategic plan
Euronext, the leading pan-European exchange, today announced its new three-year strategic plan, “Let’s Grow Together 2022”. Since its 2014 carve-out, Euronext has expanded substantially, maintaining its trademark operating excellence as it grew organically. Over the last five years, the Group has profitably diversified into new asset classes and services, and extended its federal model to welcome Ireland and Norway’s market operators.
Cboe RMC Europe Insights: 2019 Munich Interviews
Our speakers and panelists at the 2019 Cboe Risk Management Conference Europe had plenty of knowledge and insights to share in Munich. Topics ranged from options-based strategies to all things volatility and risk management.
Equity Index Highlights – October 2019 edition
OPEC, Allies Consider Deeper Output Cuts Amid Signs of Weaker Demand
Benoit Faucon and David Hodari – The Wall Street Journal
The Organization of the Petroleum Exporting Countries and its allies are considering deeper oil output cuts ahead of their December meeting, as producers confront a global crude glut and signs of weakening demand. OPEC is shifting its focus from the September attacks that resulted in a massive Saudi oil-production slowdown to worries over a possible world-wide economic deceleration and potentially weaker demand for crude.
Regulation & Enforcement
Libor Refuses to Die and That’s a Danger for Market Stability
Mark Gilbert – Bloomberg
An advertisement showing in U.K. cinemas currently shows a boy hesitating to kiss a female zombie. “But I’m kinda hot,” she says, popping chewing gum into her mouth before they lock lips — and her arm drops off. The finance community has a similarly conflicted relationship with Libor, the reference interest rates for everything from mortgages to car loans to corporate debt. This makes it likely that the benchmarks will survive beyond their planned termination date.
Invast Global Partners with Cboe for Equities Market Data
Celeste Skinner – Finance Magnates
Invast Global, a provider of Prime Brokerage Services globally, announced this Thursday that it has partnered with Cboe, the largest options exchange in the United States, for global market data.
At the same time as announcing its partnership with Cboe, the multi-asset brokerage also revealed today that it has recently launched a fully integrated API solution for brokers.
Voice Trading and Beyond – The Future of Financial Trading Technology
Joseph Seroussi – TABB Forum
J.P. Morgan and Societe Generale have invested in technology from fintech Wematch to transform traditionally voice-traded financial markets, enhancing how voice traders at banks negotiate, trade and report. Wematch CEO Joseph Seroussi looks at the firm’s promise to transform financial markets.
This Stock Market Is Straight Out of ‘The X-Files’
Robert Burgess – Bloomberg
“The X-Files” was a U.S. television series that followed the exploits of two FBI agents as they investigated the supernatural. It was eventually adapted into two films, with the second centering on a priest who may or may not be experiencing psychic visions. The title was “I Want to Believe,” which could also refer to the stock market on Wednesday.
****JB: I included this just because I am an X-Files fan. I want to believe.
Brokers Get ‘Relief’ as Fidelity Fee Match Eases Price War
Felice Maranz – Bloomberg
Investors can “breathe a sigh of relief” as Fidelity Investments matched rivals instead of escalating a recent price war, according to Morgan Stanley. Shares of TD Ameritrade Holding Corp. rose as much as 2.8% in Thursday morning trading, while Charles Schwab Corp. gained 2.3% and E*Trade Financial Corp. climbed 3.4%. TD Ameritrade has plunged 29% in the past month, while Schwab and E*Trade have both tumbled 13%, as brokers gave up on commissions.