Hedge Fund’s Secret Adani Short Revealed in Blow-by-Blow Account

Jul 3, 2024

Observations & Insight

Editor’s Note: JLN Options will not be published tomorrow or Friday in observance of the July 4th holiday. We will be back on Monday, July 8. For our readers in the US, have a great holiday!

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David Downey’s Important Call: ForecastEx to Revolutionize Event Contracts with CFTC Green Light
JohnLothianNews.com

David Downey does not call me very often, but when he does, it is important. He called me on June 25. Unfortunately, I was in London and missed the call.

There is also this strange thing that happens when someone calls me from the Cboe and their caller-ID has the general Cboe number on it, the same one I still have in my phone for the work phone for Downey from his days at OneChicago. Downey appears to be calling me. Thus, sometimes when I get a call from a Cboe PR person, it comes up on my phone as Downey.

Read more »

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Alan Knuckman Reflects on His Journey from Michigan to Chicago’s Trading Floors
JohnLothianNews.com

In a recent interview for the John Lothian Profiles video series, veteran trader Alan Knuckman recounted his path from a small mining town near Lake Superior to the bustling trading floors of Chicago. Knuckman’s story is one of perseverance, adaptability, and a deep understanding of market psychology, shaped by his early life experiences and career transitions.

Watch the video »

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BONUS: Algorithmic Adventures – A Quantitative look: Futures Discovery EP 11
JohnLothianNews.com

Hi, and welcome to the quantitative section of order book matching algorithms. Here we’ll look at a more in-depth look at how these strategies are implemented in the market in real time. Let’s first start off by looking at FIFO and pro rata. Some of the common strategies we looked at over this episode of order book matching algorithms.

Watch the video »

Lead Stories

Hedge Fund’s Secret Adani Short Revealed in Blow-by-Blow Account
Bhuma Shrivastava and Bei Hu – Bloomberg
An activist short-seller, a New York hedge fund, a Mauritius-based investment vehicle and a broker tied to a big Indian bank: All played a role in one of the most-damaging short-seller attacks anywhere in the world. A fresh war of words between the short seller – Hindenburg Research – and India’s markets regulator has thrown up an intriguing cast of characters behind the scathing report and related bets against the Adani Group that wiped out as much as $153 billion in market value last year.
/jlne.ws/3VIZtV4

Gen Z Is Taking Too Much Risk in the Markets; Even after being exposed to some financial education in schools, more young investors are putting speculative bets ahead of building long-term wealth.
Allison Schrager – Bloomberg
My financial education didn’t have the most auspicious start. I suppose I was lucky that in high school I had a class on basic investing and finance. But I cringe when I remember that we read One Up on Wall Street, which encouraged us to go to a local mall, look for stores that had a lot of customers, and consider buying their stock. Since then, financial education has become more common – but evidently not much better.
Access to financial education has never been greater, according to the CFA Institute, which polled Gen Z on their investing habits. The Gen Z cohort – those born between 1997 and 2012 – was almost 60% more likely to have some financial instruction in school compared with millennials, and 150% more likely than Gen Xers.
/jlne.ws/4cMKNuO

Exchanges

Cboe Global Markets Reports Trading Volume for June 2024
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), the world’s leading derivatives and securities exchange network, today reported June 2024 trading volume statistics across its global business lines and provided guidance for selected revenue per contract/net revenue capture metrics for the second quarter of 2024.
The data sheet “Cboe Global Markets Monthly Volume & RPC/Net Revenue Capture Report” contains an overview of certain June trading statistics and market share by business segment, volume in select index products, and RPC/net capture, which is reported on a one-month lag, across business lines.
/jlne.ws/3xzkcmn

Cboe Europe Derivatives Q2 Update
Iouri Saroukhanov – Cboe
As we enter the second half of the year, I wanted to provide a brief update on CEDX’s progress: I’m delighted to report that we have already reached several important milestones in 2024 – and during the last quarter in particular – and are excited about the progress still to be made during the rest of the year.
/jlne.ws/4eShDwv

Farmer sentiment drifts lower on weaker future expectations
CME Group
Farmer sentiment drifted downward in June as the Purdue University/CME Group Ag Economy Barometer reading of 105 was 3 points lower than a month earlier. The overall decline in sentiment was due to a five-point drop in the Index of Future Expectations, which fell to 112, while the June Current Conditions Index increased to 90, 1 point higher than the May index. High input costs, the risk of lower prices for their products, and rising interest rates continue to weigh on farmer sentiment. This month’s Ag Economy Barometer survey was conducted from June 17-21.
/jlne.ws/4brtOgF

Intercontinental Exchange Reports June and Second Quarter 2024 Statistics
Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, today reported June 2024 trading volume and related revenue statistics, which can be viewed on the company’s investor relations website at https://ir.theice.com/ir-resources/supplemental-information in the Monthly Statistics Tracking spreadsheet. “Our focus in creating a truly global platform over the last 20 years means that trading the ICE network today is not tied to any single product or limited to any one region. Instead, we have built diversified commodity and financial markets to provide risk management solutions and capital efficiencies across a range of liquid benchmarks,” said Benjamin Jackson, President at ICE. “The record traded volume across total futures and options contracts in the second quarter of 2024, surpassing the previous quarterly record in 2020, is a testament to our customers’ continued confidence in ICE as a global energy hedging venue of choice.”
/jlne.ws/3L8zXn9

Cboe Global Markets Announces Date of Second-Quarter 2024 Earnings Release and Conference Call
Cboe Global Markets
Cboe Global Markets, Inc. (Cboe: CBOE), the world’s leading derivatives and securities exchange network, will announce its financial results for the second quarter of 2024 before the market opens on Friday, August 2, 2024. A conference call with remarks by the company’s senior management will begin at 7:30 a.m. CT (8:30 a.m. ET).
/jlne.ws/4csX3B6

New ETF Options Classes
Bourse de Montreal
Bourse de Montreal Inc. (the Bourse) and Canadian Derivatives Clearing Corporation
(CDCC) hereby inform you that at the opening of trading on Wednesday July 3, 2024, the following new ETF option classes will be listed.
/jlne.ws/4ePuJdS

Interactive Brokers enhances APAC reach with extended Korean derivatives trading hours; The Eurex/KRX link offering enhances and aligns trading opportunities for users across the Korean, US, and European time zones.
Claudia Preece – The Trade
Interactive BrokersâEUR¯has launched the Eurex/KRX link, extending trading hours for Korean KOSPI 200 derivatives. Specifically, the offering enhances and aligns trading opportunities for users across the Korean, US, and European time zones, making Korean derivatives available during US and European trading hours. Milan Galik, chief executive of Interactive Brokers highlighted exactly what time means for users: “Clients can now take advantage of extended hours to trade in one of the world’s most liquid derivatives markets. Our global client base, including APAC, European and American clients, benefit by having access to KOSPI derivatives during normal and extended trading hours, regardless of location.”
/jlne.ws/4d4FV4L

Regulation & Enforcement

Hindenburg denies Indian regulator’s allegations on Adani short bet
Urvi Dugar, Shankar Ramakrishnan and Jayshree P Upadhyay – Reuters
Hindenburg Research has denied allegations by India’s securities regulator that it colluded with a U.S. asset manager to use non-public information to set up a short bet against Adani Group last year, which if proven would breach the country’s rules. Hindenburg posted a copy of a 46-page “show cause” notice from the Securities and Exchange Board of India (SEBI) outlining the allegations on its website on Monday, in the latest twist to a saga that began last year when the U.S.-based short-seller alleged improper business dealings by Adani.
/jlne.ws/4cJbIrF

South Korea Imposes Record Short-Selling Fine on Credit Suisse; Bank fined $19.5 million for violations of the rules; South Korea has banned short selling to weed out illegal bets
Youkyung Lee – Bloomberg
South Korea imposed a record 27.2 billion won ($19.5 million) short-selling fine across two Credit Suisse affiliates, as the nation attempts to stamp out illegal trading that it sees as hurting fairness in the market. The country’s Securities and Futures Commission decided to impose a 16.9 billion won penalty on Credit Suisse AG and 10.2 billion won fine on Credit Suisse Singapore Ltd., the Financial Services Commission said in a statement Wednesday.
/jlne.ws/4cHyJLs

Crypto Hedge Fund Operator Owes $84 Million in CFTC Fraud Case; CFTC brought lawsuit in 2022 after collapse of fund; Judge granted CFTC judgment, ordered restitution
Matthew Bultman – Bloomberg
A federal court ordered Jafia LLC and its owner to pay almost $84 million to crypto investors after finding they ran a Ponzi-like crypto fraud. Sam Ikkurty, of Portland, Ore., made various misrepresentations about crypto hedge funds run by his firm Jafia, including statements about his experience trading crypto, Judge Mary Rowland in the US District Court for the Northern District of Illinois said in a ruling Monday.
/jlne.ws/4co1PzH

Hedge fund manager ordered to disgorge $5.6 million illicit profit from false trading and disqualified for four years
SFC
The Market Misconduct Tribunal (MMT) has ordered Mr Jonathan Dominic Iu Wai Ching, a former responsible officer of Tarascon Capital Management (Hong Kong) Limited (Tarascon), to disgorge illicit profit of over $5.6 million from false trading and disqualified him for four years following legal proceedings brought by the Securities and Futures Commission (SFC) (Note 1).
/jlne.ws/3XJWhLB

Moves

Wall Street’s most bearish strategist is leaving JPMorgan. Here’s a look at his market calls.
Joseph Adinolfi – MarketWatch
Wall Street’s biggest bear is heading for the door.
Chief market strategist Marko Kolanovic is leaving JPMorgan Chase & Co. following a 19-year stretch with the bank, according to a person at the investment bank who shared details from two internal memos with MarketWatch on Wednesday.
/jlne.ws/3XMZjP6

Miscellaneous

My Top Lessons for Career Success
David Howson – Cboe Global Markets via LinkedIn
As a new group of graduates enters the workforce and our summer internship program at Cboe begins, I find myself reflecting on my first few years at work and the lessons I learned that have made the biggest impact on my career to date. When I headed to university, I knew from the start I needed to work hard to make my way in the world. Throughout my career, one thing has become increasingly clear: there is no substitute for hard work. Not only is there no substitute, but there is also nothing quite as rewarding as achieving a goal knowing that you gave it your best effort.
/jlne.ws/4cpxSiV

****** David Howson is someone I listen to as he has had remarkable career success and may be the next CEO of the Cboe.~JJL

Wall Street Starts Calling Time on ESG Labels After Backlash

Wall Street Starts Calling Time on ESG Labels After Backlash

First Read Hits & Takes John Lothian & JLN Staff Miami International Holdings, Inc. (MIH) announced that the SEC has approved MIAX Sapphire LLC's application to become a national securities exchange. MIAX Sapphire, MIH's fourth national securities exchange for...

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The Spread

Traders Betting on China Easing Boost Bearish Options on Banks

Observations & Insight Miami International Holdings, Inc. (MIH) announced that the SEC has approved MIAX Sapphire LLC's application to become a national securities exchange. MIAX Sapphire, MIH's fourth national securities exchange for U.S. multi-listed options,...

Past Options Newsletters

Options Bulls Come Out to Play

Options Bulls Come Out to Play

Observations & Insight The CME Group recently announced several product modifications and rule violation penalties. Effective August 5, 2024, additional Treasury Invoice Swaps and Spreads will be available, and starting July 22, 2024, there will be amendments to...

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