Observations & Insight
FIA Asia-V: Are Data and Technology the New Drivers for the Business?
Jeff Bergstrom – John Lothian News
There is perhaps nothing more central to trading than data. The numbers flashing across your computer screen may represent tangible products but in the end it is all reduced to a data stream. Getting the maximum benefit out of that data and the technology needed to do so were at the heart of the FIA Asia-V seminar: “Are Data and Technology the New Drivers for the Business?” (See panelist list below.)
On the face of it, one might think there’s not all that much to it. “Garbage in, garbage out” as the saying goes. But listening to the panelists speak it became apparent there is much more to it, and both the possibilities and complexities can quickly get out of control.
To read the rest of this story, go here.
FIA Asia-V: Wrapping Up the Future of Futures: Politics, China and a Margining Debate
Suzanne Cosgrove – John Lothian News
Several industry themes emerged in the very last panel discussion of FIA Asia-V, or as moderator and JPMorgan Managing Director David Martin wryly noted, the “graveyard of all graveyard shifts at the end of a three-day conference.”
These topics included market volatility, the new U.S. political landscape, China’s role as a competitive player in the capital markets, and a re-examination of exchange infrastructure, technology and margins.
Martin, who is head of JPMorgan’s Asia-Pacific global clearing, said global markets were prepared for volatility around the U.S. elections, but were surprised that more volatility was spurred by the prospective launch of COVID vaccines than by the election itself.
To read the rest of this story, go here.
FIA Asia-V: ESG – Meeting Customer Demand While Building a Market
Matt Raebel – John Lothian News
ESG (Environmental, Social and Governance) investing is a hot topic these days. The growing practice of investing in exclusively eco-friendly, socially-conscious companies is a developing industry, and from the sounds of the panelists at the FIA Asia-V panel, “Responding to Societal Issues” Wednesday, it’s still got a lot of growing to do.
The panelists said that each of their companies had seen increased demand for ESG products, especially from clients in the U.S. and Europe. Mathieu Fuhrmann, vice president of equity index sales at Eurex, said that Eurex’s clients asked the exchange to build out an ESG marketplace in the European Union beginning with benchmark ESG indices, launching ESG derivatives products later to meet customer demand. Pascal Lambert, group country head of Singapore and head of South East Asia & India at Societe Generale, said that investor appetite for ESG products has particularly increased among prime bankers and family offices over the past 18 months.
To read the rest of this story, go here.
It’s time for stock market investors to get in caution mode, and here’s how to prepare for it
Michael Brush – MarketWatch
Investors and traders, it’s time to override your emotions and get cautious on the stock market.
Otherwise you might get laid low by a sharp pullback in the S&P 500, the Dow Jones Industrial Average and Nasdaq. The stock market is much more vulnerable to one now.
There are two reasons: Crowd sentiment is very bullish, and insiders are quite cautious. This is not a good combination.
Tech stock boom a ‘bubble waiting to burst’: Amundi CIO
The boom in the shares of U.S. technology giants is a bubble that will burst once interest rates increase or “over exuberance” in the tech story fades, Pascal Blanque, chief investment officer at asset manager Amundi said on Thursday.
“It’s a perfect bubble waiting to burst. It’s not if, but when,” Blanque told the Reuters Global Investment Outlook Summit, adding that you “cannot justify the current valuations” and investors should adjust their stock portfolios accordingly.
Volatile bitcoin not yet a store of value: Fidelity digital assets boss
Tom Wilson – Reuters
Bitcoin is still too volatile to act as a true store of value, though investors hope it will assume that role, the head of the digital assets arm of Fidelity Investments said on Thursday.
Exchanges and Clearing
Cboe Advances ETP Market Leadership, Becomes 2nd Largest Primary Listings Exchange in the U.S.
Cboe Global Markets
35 percent of all new ETP launches this year have occurred on Cboe BZX Equities Exchange; Cboe now home to more than 400 ETPs in the U.S., representing over $370 billion in assets under management; Since investing in its listings business in 2015, Cboe has grown ETPs on its exchange by 1,400 percent
Cboe Global Markets, Inc. (Cboe: CBOE), a market operator and global trading solutions provider, today announced it has become the 2nd largest primary listings venue for exchange-traded products (ETPs) in the U.S. following record gains in new listings this year.
CBOT Financial Delivery Invoice CSV Reports
Please be advised, csv versions of the CBOT financial delivery invoice reports are now available from the New Release environment for download and review in EREP. These reports are representative of the financial delivery assignment detail and summary activity, now made available to EREP in a csv format.
Amendments to the Strike Price and Listing Schedule for Certain Options on Great British Pound/U.S. Dollar (GBP/USD) Futures Contracts
Effective Sunday, January 31, 2021, for trade date Monday, February 1, 2021, Chicago Mercantile Exchange Inc. (“CME” or “Exchange”) will amend the strike price and listing schedule for certain Options on Great British Pound/U.S. Dollar (GBP/USD) Futures contracts (collectively, the “Option Contracts”) as described below.
MIAX Exchange Group – Options Markets – Delisting of Baytex Energy Corp. (BTE)
Baytex Energy Corp. (BTE) will be de-listed from the MIAX Options Exchange, MIAX PEARL Options Exchange and MIAX Emerald Options Exchange effective on Friday, December 4, 2020. All GTC orders resting on the MIAX order books in BTE will be canceled at the close of business on Thursday, December 3, 2020.
MIAX Exchange Group – Options Markets – Corporate Action Alert: iShares Exchange Traded Funds (IWP), (IYW), and (ITA)
iShares Exchange Traded Funds (IWP), (IYW), and (ITA) have announced stock splits. Associated strike price adjustments will become effective on Monday, December 7, 2020. IWP, IYW, and ITA options will continue to trade without interruption on the MIAX Options Exchange, MIAX PEARL Options Exchange and MIAX Emerald Options Exchange.
Nasdaq apologises for Australia stock exchange outage
Exchange operator Nasdaq Inc on Friday apologised for an Australian stock exchange outage last month, which wiped out nearly a full session of trading. “We take our role as a provider of mission-critical technology seriously and apologise to ASX, its customers and all those impacted”, Nasdaq Chief Executive Officer Adena Friedman said.
Regulation & Enforcement
US banks welcome delay to Libor switch affecting $200tn in assets
Philip Stafford, Joe Rennison and Colby Smith – Financial Times
A surprise reprieve from regulators has spread relief around banks, asset managers and borrowers that were struggling to figure out how to wean themselves off the tainted and outdated US dollar Libor benchmark.
The rate, which measures the cost of unsecured borrowing between banks, is due for extinction in most currencies at the end of 2021. But embedding an alternative in the US is particularly tricky, given the sheer size of the task. The New York Fed estimates $200tn of derivatives, loans and bond contracts are tied to dollar Libor — far more than for any other currency version.
A proposal to amend the rules of The Nasdaq Options Market LLC at Options 1, Section 1; Options 2, Section 5; Options 3, Sections 5, 7, 10, 15 and 23
A Proposal to amend NOMs Pricing Schedule at Options 7, Section 2 and Options 7, Section 3
NOTICE OF SUMMARY ACTION # CME-DQA-20-0539
Effective Date 04 December 2020
FILE NO.: CME-DQA-20-0539
SCOTT D. MOORE (SDM)
515. REGISTRATION AND IDENTIFICATION OF BROKER ASSOCIATIONS.– E. TRADING RESTRICTIONS
Options Regulatory Alert #2020 – 43 Nasdaq Rulebook Relocation
The Nasdaq Stock Market LLC recently filed a rule change to relocate its rules into a new Rulebook Shell that is pending publication by the SEC. For ease of reference in locating the rules of this market, below is a guide.
BGC’s Capitalab teams up with CLS Group to enhance FX portfolio optimisation
Annabel Smith – The Trade
Capitalab, the FinTech firm operated by interdealer broker BGC Brokers, has entered a services agreement with foreign exchange settlement specialist CLS Group to enhance the data offering of its foreign exchange compression service. Through the partnership, Capitalab’s compression services will receive data direct from CLS Group from foreign exchange swaps and forwards in currencies eligible on CLSSettlement. Capitalab provides compression services across interest rate swaptions, interest rate swaps, caps, and floors, equity options, FX and FX Options that are designed to bring greater capital and operational efficiency to the global derivatives market.
Risk Management with VIX Options and Futures
This article was prepared in connection with the launch of Mini Cboe Volatility Index (Mini VIXTM) futures on Cboe Futures Exchange, LLC (CFE). Before you trade Mini VIX futures, it’s important to understand the following:
Mini VIX futures are complicated financial products that are suitable only for sophisticated market participants.
Mini VIX futures involve the risk of loss, which can be substantial and can exceed the amount of money deposited for the futures position.
Market participants should put at risk only funds that they can afford to lose without affecting their lifestyles.
Before transacting in Mini VIX futures, market participants should fully inform themselves about the characteristics and risks of Mini VIX futures, including in particular those described below. Mini VIX futures market participants also should make sure they understand the product specifications and the methodologies for calculating the underlying VIX Index and the settlement values for Mini VIX futures.
I Started Trading Hot Stocks on Robinhood. Then I Couldn’t Stop.
Jason Zweig – WSJ
Is the stock market a form of entertainment?
I went on Robinhood, the popular stock-trading app, to find out.
You’ve probably heard of it, even if you aren’t among the 13 million people already using it. Robinhood makes trading stocks, options and cryptocurrencies fun and exciting, and analysts have attributed some of this year’s skyrocketing stock prices to novice Robinhood traders.
TWIFO 227: Breaking Records and Making History
TWIFO – Options Insider Network