Observations & Insight
Tradier’s Kevin “Lex” Luthringshausen Talks Demand for Crypto, Portfolio Margining and What Today’s Traders are Looking For in JLN OIC 2022 Interview
Kevin “Lex” Luthringshausen is the senior vice president for business development at Tradier, an options-centric brokerage firm. Earlier in his career he was a floor trader, which is where he acquired the nickname “Lex,” which was the three letter acronym he chose to use for his trading badge on the floor of the Cboe.
JLN talked to the veteran trader, broker and options specialist at the 2022 Options Conference in San Antonio, Texas as part of the JLN OIC Industry Leader video series.
Nancy Pelosi’s husband just purchased up to $2.1 million worth of Apple and Microsoft stock options
Dave Levinthal and Kimberly Leonard – Business Insider
House Speaker Nancy Pelosi’s husband, Paul Pelosi, purchased up to $2.1 million in Apple and Microsoft stock options in May, according to new personal financial disclosures filed with Congress.
Paul Pelosi purchased between $750,000 and $1.5 million worth of Apple stock options between May 13 and May 23, and between $300,000 and $600,000 worth of Microsoft stock options on May 24, the filings indicate.
Hedge Fund Run by Ex-Gold Trader Soars on Chinese Nickel Bet
The bet paid off as nickel’s price moved sharply higher in the week after Russia’s invasion on Feb. 24, before a 250% spike in little more than 24 hours plunged the industry into chaos, leading the London Metal Exchange to suspend trading for the first time in three decades.
In Shanghai, where Li had placed his bets, nickel prices surged to the exchange’s trading limits for three consecutive days. The move helped Hede’s Oriental Star No. 1 fund book a 432% return through May 27, the highest this year among futures funds in China tracked by local research provider Shenzhen PaiPaiWang Investment & Management Co.
‘Liquidity is terrible’: poor trading conditions fuel Wall Street tumult
Eric Platt, Joe Rennison and Kate Duguid – Financial Times
Traders’ ability to seamlessly buy and sell stocks, bonds and other financial products on Wall Street has deteriorated sharply this year, adding fuel to the big swings on the world’s biggest and deepest capital markets.
Liquidity across US markets is now at its worst level since the early days of the pandemic in 2020, according to investors and big US banks who say money managers are struggling to execute trades without affecting prices.
Farmer sentiment plummets as production costs skyrocket
The Purdue University/CME Group Ag Economy Barometer dropped to its lowest level since April 2020, down 22 points in May to a reading of 99. Agricultural producers’ perceptions regarding current conditions on their farms, as well as their future expectations, both weakened this month. The Index of Current Conditions dipped 26 points to a reading of 94 and the Index of Future Expectations fell 21 points to a reading of 101. The Ag Economy Barometer is calculated each month from 400 U.S. agricultural producers’ responses to a telephone survey. This month’s survey was conducted between May 16-20.
Citadel Securities Ready for Crypto ETFs When Regulators Approve
Katherine Doherty and Claire Ballentine – Bloomberg
Ken Griffin’s Citadel Securities is willing to make markets in exchange-traded funds that hold cryptocurrencies, if regulators allow it.
“We will be ready if and when those products are approved, but we are taking a measured approach,” Kelly Brennan, head of the firm’s ETF group, said in an interview at Bloomberg’s headquarters in New York, adding that the firm can’t provide liquidity until regulatory issues are resolved.
The US will avoid a recession but rising rates and slowing growth aren’t a supportive environment for investors, says iShares investment chief
Phil Rosen – Business Insider
The labor market shows demand for workers is outpacing available workers, which means the Fed could move to reduce labor demand.Fed tightening means more volatility for investors though, and a climate of lower returns, she explained.
Companies Keep Libor on the Books Despite Push to New Benchmark
Mark Maurer – WSJ
Companies are hanging onto the London interbank offered rate for existing loans and derivatives despite a push from regulators to abandon the troubled interest-rate benchmark, whose demise is about a year away.
NYSE US Exchanges to Close in Observance of Juneteenth National Independence Day
In observance of Juneteenth National Independence Day, the New York Stock Exchange, NYSE American Equities, NYSE Arca Equities, NYSE Chicago, NYSE National, NYSE American Options, NYSE Arca Options, and NYSE Bonds markets will be closed on Monday, June 20, 2022.
HKCC Participant Additional Deposit
Please be advised that HKFE Clearing Corporation Limited (HKCC) has recalculated the HKCC
Participant Additional Deposits (HPAD) pursuant to the HKCC Rule 705A and the Clearing House Procedures. The new total HPAD requirement of HK$1,284 million after the recalculation will be shared by all the Participants based on their daily average net margin liabilities during the period from 9 March 2022 to 6 June 2022 in accordance with Chapter 4 of the Clearing House Procedures for Futures/Options Contracts Traded on the Automated Trading System of the Exchange (“HKATS”).
Regulation & Enforcement
SEC Closes In on Rules That Could Reshape How Stock Market Operates
Paul Kiernan and Alexander Osipovich – WSJ
The Securities and Exchange Commission is preparing to propose major changes to the stock market’s plumbing as soon as this fall.
Chairman Gary Gensler directed SEC staff last year to explore ways to make the stock market more efficient for small investors and public companies. While aspects of the effort are in varying stages of development, one idea that has gained traction is to require brokerages to send most individual investors’ orders to be routed into auctions where trading firms compete to execute them, people familiar with the matter said.
FIA announces new board members, first female chair
London — FIA today announced the election of new directors to its Board of Directors, including the appointment of Alicia Crighton of Goldman Sachs & Co as its first-ever female Chair.
“Alicia’s appointment as the first female chair in FIA’s history is a well-deserved honor, and we hope it provides an example to the next generation of leaders in our industry,” said FIA President and CEO Walt Lukken. “We congratulate Alicia, and we thank her for taking on this leadership position at a very important time for cleared derivatives markets around the globe.”
OptionsLive boosts platform offering with SOFR trading
ED&F Man Capital Markets’ OptionsLive, a trading application for Chicago Mercantile Exchange (CME) Interest Rate Options, has released Secured Overnight Financing Rate (SOFR) Options Trading algos and analytics for institutional clients including, banks, hedge funds, FCM’s and asset managers.
Capturing opportunities in commodities, sustainability and digital assets
Opening remarks of Walt Lukken, President and CEO of FIA, at the International Derivatives Expo conference in London. As prepared for delivery.
Welcome to IDX! I’m SO excited to be back in London.
Time flies when you are having fun—or hibernating during Covid. Incredibly, this year marks my 10th anniversary at FIA, which means I only have 60 years to go to catch up with the Queen. In all sincerity, it was wonderful to arrive in London during the Queen’s Jubilee and mark her amazing 70 years on the throne.