FIA Tech Extends Platform To US Listed Options

Jul 22, 2021

Observations & Insight

Ed Tilly: Opportunities at Cboe Global Markets – MWE World of Opportunity
JohnLothianNews.com

Cboe Global Markets Executive Chairman & CEO Ed Tilly sat down with John Lothian News over Zoom for the MarketsWiki Education World of Opportunity series to discuss current opportunities at the Cboe as the exchange operator continues to expand globally. He also talked about how Cboe is responding to increased retail investor demand. He noted opportunities are still available on the trading floor and he mused about what he would do if he were starting his career today.

Watch the video »

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Andre Buckles: Working From Home – MWE World of Opportunity
JohnLothianNews.com

Andre Buckles is the executive director of talent recruitment at the OCC. He spoke to John Lothian News for the MarketsWiki Education World of Opportunity video series about the work from home environment and how to make it work. He offered insights as an engaged worker in a remote working world. He spoke about six different ways to be engaged in a virtual environment.

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Lead Stories

FIA Tech Extends Platform To US Listed Options; Atlantis brokerage service launches support for US listed options
FIA Tech
FIA Tech, the leading technology provider to the exchange traded derivative industry, announced today that it has added US listed options support to its Atlantis service, and gone live with brokerage processing for two major banks. The functionality was developed with the assistance of OCC (Options Clearing Corporation) and is now available for all existing and future FIA Tech customers.
/bit.ly/36QCKgP

****JJL: Listed options are hot and FIA Tech is on the job.

US regulator fines UBS $8m over volatility ETP
David Isenberg – Financial Times
UBS Financial Services will pay $8.1m to settle allegations that it had faulty policies and procedures that led to clients holding a short-term, volatility-linked exchange traded product for longer than they should have, the Securities and Exchange Commission announced earlier this week.
Between at least January 2016 and January 2018, financial advisers in UBS’s discretionary Portfolio Management Program purchased and held the iPath S&P 500 VIX Short-Term Futures ETN, or VXX, for clients for a longer period of time than it was intended to be held, the SEC’s order said. The ETN is designed to be held for a few days, but the New Jersey-based subsidiary of the Swiss multinational investment bank had hundreds of accounts that held the product for more than a year.
/on.ft.com/3zlmUaf

US stocks could tumble 15% in a rough fall – and the bitcoin bubble could deflate further this year, Guggenheim’s Scott Minerd says
Shalini Nagarajan – Markets Insider
US equities could drop 15% by the end of October, driven lower by concern over the delta variant of COVID-19 and its impact on global growth, while cryptocurrencies could continue to face pressure, according to Guggenheim’s Scott Minerd.
The chief investment officer told Bloomberg on Wednesday that September and October are likely to be “very rough” months for stocks.
/bit.ly/2WbKRT6

Traders May Take A Breather Following Recent Volatility
Markets Insider
The major U.S. index futures are currently pointing to a roughly flat open on Thursday, with stocks likely to show a lack of direction in early trading.
Traders may be reluctant to make significant moves following the volatility seen over the past few days, which saw the major averages plunge on Monday only to rebound strongly on Tuesday and Wednesday.
/bit.ly/3eLiMIA

Traders Brace For Major Oil Market Volatility This Summer
Markets Insider
After a period of relative stability in the oil market where U.S. crude benchmark WTI was trading above $70 a barrel for more than a month, traders are now bracing for a wild ride for the rest of the summer.
Traders in the crude oil options market expect volatility to spike in the coming weeks and are hedging more against further price declines, data compiled by The Wall Street Journal showed. The increased caution suggests that market participants are weighing the prospect of rising oil supply from OPEC+ in the coming months against concerns about potential stalling of the global oil demand recovery amid the spike in COVID cases in many countries.
/bit.ly/2UuRBLv

Why the S&P 500 could be poised for a 5% drop — or even more this summer
Joy Wiltermuth – MarketWatch
Monday’s market rout could serve as a good reminder that, yes, stocks can stumble when they trade near record territory.
While the downward pressure on stocks, this time, has been fleeting, that doesn’t necessarily mean the end of volatility for markets this summer, said Ryan Detrick, chief market strategist at LPL Financial, in a Wednesday note.
/on.mktw.net/3zshp9U

Dow Rally in Jeopardy Amid Disappointing Jobs Data
Last week’s jobless claims ticked upwards, surprising Wall Street
Lillian Currens, Deputy Editor – Schaeffer’s Investment Research
Futures on the Dow Jones Industrial Average (DJI) are poised for a modest drop this morning, giving back some of their earlier gains after another round of weekly jobless data showed a surprise jump. Claims rose to 419,000 last week, much higher than the 350,00 expected by analysts. The S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are also struggling to maintain yesterday’s positive price action, as Wall Street pores over another round of earnings reports. Elsewhere, the 10-year Treasury yield is looking at muted gains, fresh off yesterday’s rise to 1.29%.
/bit.ly/3eO9w6u

Bitcoin price hits $32K but derivatives metrics still show signs of weakness
FX Street
Bitcoin price rallied 8.5% to recover the $32,000 level, but derivatives data shows pro traders still feel apprehensive.
There’s no doubt that the last couple of months have been bearish for Bitcoin (BTC), but throughout this entire period, derivatives indicators have been relatively neutral. This could be because cryptocurrencies have a strong track record of volatility, and even 55% corrections from all-time highs are expected.
/bit.ly/3xYvjQp

Exchanges

How Nasdaq Options Contracts Help Investors Target Market Exposure
Kim Griffin – Yahoo Finance
While investing in the market, you probably know quite a bit about stocks, bonds and mutual funds. In fact, your portfolio likely contains all three to varying degrees. But when it comes to hedging your holdings using options and futures, the average investor may get a bit overwhelmed with the risk. Not only that, but to take full advantage of these types of investments and significantly impact your portfolio, you historically need some trading power. That fact alone can leave a lot of interested investors behind, preventing them from making the most out of their investments.
/yhoo.it/3iFmuob

Regulation & Enforcement

US regulator fines UBS $8m over volatility ETP; Hundreds of clients held the product for longer than it was designed with some investors losing 75% of their assets
David Isenberg – FT
UBS Financial Services will pay $8.1m to settle allegations that it had faulty policies and procedures that led to clients holding a short-term, volatility-linked exchange traded product for longer than they should have, the Securities and Exchange Commission announced earlier this week.
/on.ft.com/3zlmUaf

Strategy

How to Play Moderna Stock for a Covid Resurgence
Steven M. Sears – Barron’s
What really scares investors isn’t the potential deterioration of financial metrics that have been thrust to the center stage since earnings season began. As we were reminded on Monday, everyone’s nightmare remains the Covid-19 virus, which had seemed to be under control.
Stocks may have rebounded Tuesday, triggering a debate about the meaning of the recent sharp loss, but investors should remain focused on the virus even if they’re tempted to conclude that the stock market will keep rising.
/bit.ly/3hXl4X5

Opinion: This chart combination is bullish for the stock market
Lawrence G. McMillan – MarketWatch
The S&P 500 index sold off sharply for the second time this month. The decline of 70 points on July 7 and July 8 paled in comparison to the 140-point loss of July 16 and July 19. However, in both cases, the S&P snapped back immediately. Currently, SPX has support at 4233 (the lows of July 19) and has resistance at 4393, the July all-time highs. Below there, support exists at 4165 and 4060, the lows of June and May, respectively.
/on.mktw.net/3eN01EJ

Optimizing Your Options Strategies: Butterfly Spreads
Schaeffer – Nasdaq
Trading options can be a complicated process, as a lot of options strategies are available and traders need to evaluate all of the possible routes ahead of executing a trade. The beauty of options trading is that there are options strategies for every market environment.
In this article, we will be talking about one of the most popular options strategies known as Butterfly Spreads. A butterfly spread is an options strategy combining bull and bear spreads with a fixed risk and capped profit. These spreads involving either four calls or four puts and are generally a neutral market strategy. Butterfly spreads will profit if the underlying stock does not move much, if at all, throughout the duration of the trade.
/bit.ly/3iBlCRC

Events

****SC: The Cboe Options Institute will host a 75-minute webinar on Wednesday, July 28, at 12 p.m. ET, to discuss 35 years of options index performance with Stacey Gilbert, portfolio manager, Glenmede Investment Management; Jon Cherry, global head of options at Northern Trust Securities; Mike Oyster, chief investment officer at Options Solutions; and Gaurav Sinha, managing director at S&P Dow Jones Indices. Planned topics include strategies for enhanced risk-adjusted returns and generating monthly income with options strategies. More details here.

****SR: FOW Asia returns 8-9 September 2021 in a virtual format. Topics include: Moving past the pandemic: trading and investing while keeping risk in check; China access: progress of two-way capital market opening-up; Commodities: an inflation hedge amid decarbonization?; ESG Integration: adapting to the Asian market; Equity and derivatives for APAC investors; and Digital assets, blockchain and marketplace: what’s next in play?
Complimentary places are available to banks, brokers, funds, asset management firms, prop. traders and CTAs. You can go here to register.

Registration for IDX is open!
FIA
Say goodbye to Zoom and make your plans to connect with FIA and the cleared derivatives community in London at this year’s International Derivatives Expo, taking place 27-28 September at the Park Plaza Westminster Bridge. Registration rates go up after 27 August.
/bit.ly/3hXceJ9

Miscellaneous

Sorting out the value, volatility and durability of cryptocurrencies
Ian Madsen – Troy Media
Rising prices may be increasing their allure but there are considerable risks
Ian MadsenThe value of cryptocurrencies such as Bitcoin, Ethereum and others recently hit new record highs, in the thousands of dollars per unit. This escalation has attracted more speculators, further boosting prices over the past several months.
Much of this is the result of investors fearing they will miss out on a chance to profit.
/bit.ly/2V7ogq1

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