Observations & Insight
****SR: The CME Group reported its July 2021 monthly market statistics this morning, which included the highest-ever July ADV, at 17.1 million contracts, as well as interest rate monthly ADV up 96%, options ADV up 55% and energy ADV up 23%.
July ADV across asset classes included: Interest Rate ADV of 7.8 million contracts; Equity Index ADV of 4.8 million contracts; Options ADV of 3.1 million contracts; Energy ADV of 2.1 million contracts; Agricultural ADV of 1.1 million contracts; Foreign Exchange ADV of 735,000 contracts’ and Metals ADV of 538,000 contracts.
You can read the full CME Group press release here.
OCC July 2021 Total Volume Up 29.2 Percent from a Year Ago
OCC, the world’s largest equity derivatives clearing organization, announced today that July 2021 total cleared contract volume was 794,793,709 contracts, up 29.2 percent compared to July 2020 and the highest July on record. Year-to-date average daily cleared contract volume through July was 39,175,394 contracts, up 38.2 percent compared to July 2020.Options: Total exchange-listed options cleared contract volume was 790,038,364, up 29.2 percent compared to July 2020.
Options Traders May Be Turning Bullish
Joe Duarte – Seeking Alpha
Despite some sloppy trading action and some sluggishness in the market’s breadth, there may be some good news developing in the options market, which could bode well for stocks in the not-too-distant future, barring some sort of unpleasant surprise.
Of course, at the end of the day, the most influential variable is what the Federal Reserve does to its QE protocol.
Bearish trend signals stocks are vulnerable to a 10% to 15% correction
The market appears to be doing something that happens ahead of corrections.
When the S&P 500, Nasdaq and the CBOE Volatility Index rise together, BTIG’s Julian Emanuel warns it’s often a precursor to a 10% to 15% pullback.
“Whenever we’ve seen that going back to the beginning of 2018, we were essentially weeks away from a correction,” the firm’s chief equity and derivatives strategist told CNBC’s “Trading Nation” on Monday. “The most recent one being last September. We think history could in fact repeat itself.”
Fear Carries the Day in China Tech as Bargain Hunters Waver
The plunge in Hong Kong-listed Chinese tech stocks Tuesday underscores the market’s vulnerability to Beijing’s displeasure with the nation’s internet giants — and just how hard it is for investors to pick the bottom.
After five months of declines that took the Hang Seng Tech Index down nearly 40% from its peak, analysts had been on the lookout for a rebound.
Bullish Flows Push Bitcoin’s Put-Call Ratio to 2021 Low
Omkar Godbole – Yahoo Finance
Bitcoin’s put-call open position ratio dropped to the lowest level this year on increased activity in calls, or bullish bets.
The ratio slipped to 0.51 on Monday, hitting the least since Dec. 25 and extending the slide from the July high of 0.67, data provided by crypto derivatives research firm Skew show.
MIAX Reports Record SPIKES Futures Trading on MGEX
MIAX , creator and operator of high-performance securities exchanges, products and services, today announced average daily volume for SPIKES Futures in July, 2021 reached 1,596 contracts, a new monthly record. In addition, SPIKES Futures volume on July 13, 2021 totaled a record 4,097 contracts. An expanded group of market participants and a zero fee exchange policy that began July 1, 2021 are key factors driving volume growth.
MIAX Exchange Group – Options Exchanges – Updated August 1, 2021 Fee Changes
As previously announced in the July 26th Alert, effective August 1, 2021, the MIAX Options, MIAX Pearl Options and MIAX Emerald Options Exchanges Fee Schedules were amended.
CME Group Reports July 2021 Monthly Market Statistics
CME Group, the world’s leading and most diverse derivatives marketplace, today reported July 2021 market statistics, including average daily volume (ADV) of 17.1 million contracts during the month.
MGEX Reports a Top-10 Month
MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), welcomes July 2021 as the 7th best overall month for MGEX with a total exchange volume of 297,235 contracts. This past month was also the 2nd best July in the record book.
ANZ launches Sustainability-Linked Derivatives
ANZ today announced the launch of a Sustainability-Linked Derivative product in Australia, Hong Kong, Japan and Singapore to support customers achieve their sustainability objectives.
ANZ Head of Sustainable Finance Katharine Tapley said: “ANZ is among very few banks globally to offer Sustainability-Linked Derivatives, which is a natural evolution of the sustainable finance market.”
Cboe Global Markets to Present at UBS Financial Services Virtual Conference Tuesday, August 10
Cboe Global Markets
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, announced today that Chris Isaacson, Executive Vice President and Chief Operating Officer, and Brian Schell, Executive Vice President, Chief Financial Officer and Treasurer, will present at the UBS Financial Services Virtual Conference, on Tuesday, August 10 at 1:00 p.m. ET.
As producer sentiment holds steady, farmers weigh in on rising input prices and farmland values
WEST LAFAYETTE, Ind. and CHICAGO, Aug. 3, 2021 /PRNewswire/ — The Purdue University/CME Group Ag Economy Barometer leveled off after two months of sharp declines, down just 3 points to a reading of 134 in July. Both producers’ sentiment regarding current and future conditions also dropped. The Index of Current Conditions was down 6 points to a reading of 143, primarily as a result of weakened principal crop prices. The Index of Future Expectations was down 2 points to a reading of 130. 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 July 19-23, 2021.
Global Banks’ $170 Billion Haul Marks Most Profitable Year Ever
Harriet Habergham – Bloomberg
Never mind banker burnout, return-to-office headaches, and new pandemic waves. A simple reality stands out for the biggest global investment banks: they’re minting money like never before.
As the dust settles over earnings season, a total profit of more than $170 billion from a dozen of the biggest firms in the past four quarters shows how far the industry has come from the frazzled early stages of the pandemic. JPMorgan Chase & Co. was the standout, earning the equivalent of $131 million a day.