Observations & Insight
FIA Asia-V: Asian Commodity Futures Bloom Despite COVID’s Chaos
Suzanne Cosgrove – John Lothian News
While the pandemic was a major economic disruptor in 2020, impacting global demand and the supply chain, the use of futures and options grew in Asia as more investors used them as hedge and arbitrage vehicles, said members of an FIA Asia-V panel devoted to change in the world of global commodities.
That process was not without its pitfalls, noted several panelists in a discussion moderated by Bill Herder, head of Asia-Pacific for the FIA, at the second day of the conference.
To read the rest of this story, go here.
During the FIA Asia-V seminar, “Are Data and Technology the New Drivers for the Business?” last night, Catherine Clay, Cboe senior vice president, global head of Information solutions, said Cboe was forming a partnership with Coinroot. We’ll pass along more information as we learn it.
OCC November 2020 Total Volume Up 71 Percent from a Year Ago
OCC, the world’s largest equity derivatives clearing organization, announced today that November 2020 total cleared contract volume was 677,190,590 contracts, up 71 percent from November 2019. This marks the highest November ever and the second-highest month on record. Year-to-date average daily cleared contract volume through November was 29,295,206 contracts, up 48.4 percent from November 2019.
CryptoCompare Launches The Bitcoin Volatility Index (BVIX) Developed In Partnership With The University Of Sussex Business School – The First Benchmark Index To Quantify Bitcoin Implied Volatility
CryptoCompare, a global leader in digital asset data, and the University of Sussex Business School today announced the launch of the Bitcoin Volatility Index (BVIX).
‘Big Short’ investor Michael Burry reveals he’s short Tesla, tells Elon Musk to issue more stock at its ‘ridiculous price’
Ben Winck – Markets Insider
The famed investor Michael Burry has revealed that he’s short Tesla and advised CEO Elon Musk to issue more shares while they sit what Burry called their “current ridiculous” levels.
Tesla shares have rallied more than 575% this year, boosted more recently by the company’s coming inclusion in the S&P 500 and fading profitability concerns. Some of Wall Street’s more bearish analysts have turned more optimistic toward the stock, and favor from waves of retail investors has further supported Tesla’s lofty valuation.
Exchanges and Clearing
Cboe Global Markets Reports November 2020 Trading Volume
Cboe Global Markets, Inc. (Cboe: CBOE), a market operator and global trading solutions provider, today reported November monthly trading volume.
? U.S. Equities total ADV up 51 percent from November 2019
? European Equities total ADNV up 33 percent from November 2019
? Options total ADV up 50 percent from November 2019
? ADV in VIX options up 37 percent from November 2019
? Global FX total ADNV up 32 percent from November 2019
CME Group Reports November 2020 Monthly Market Statistics
CME Group, the world’s leading and most diverse derivatives marketplace, today reported November 2020 market statistics, including average daily volume (ADV) of 19.3 million contracts during the month. Market statistics are available in greater detail at https://cmegroupinc.gcs-web.com/monthly-volume.
Miami International Holdings Reports November 2020 Trading Results for MIAX Exchange Group
Miami International Holdings, Inc. (MIH) today reported November 2020 options trading results for its three national securities exchanges – MIAX, MIAX PEARL and MIAX Emerald (together, the MIAX Exchange Group). The MIAX Exchange Group collectively executed over 69 million equity option contracts in November for a combined average daily volume (ADV) of 3,453,514 contracts, representing a total U.S. equity options market share of 10.79%.
Intercontinental Exchange Reports November Statistics; Energy Open Interest +9% y/y; November Futures & Options ADV +7% y/y including Energy +9% y/y
Intercontinental Exchange, Inc.
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of mortgage technology, data and listings services, today reported November 2020 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.
Treasury Volatility Boosts Tradeweb
Matt Wirz – WSJ
Sharp moves in Treasury bonds whipsawed investors recently, but the volatility has made a winner out of Tradeweb Markets Inc., a large electronic marketplace for U.S. government debt.
Average daily trading volume on the company’s electronic platform hit $959 billion in November, the second busiest months ever for Tradeweb behind March, when panicked investors piled into the Treasury market. Increased volatility before and after the election fueled much of the surge, along with growing adoption of electronic trading, the company said.
Vanguard to close European active ETF range
Ed Moisson – Financial Times
Vanguard is to close its four European actively managed exchange traded funds because of insufficient demand for the products.
The four Ireland-based ETFs have a combined GBP224m ($298m) in assets under management and provide exposure to four investment factors: value (VDVA), momentum (VDMO), low volatility (VDMV) and liquidity (VDLQ).
Product Modification Summary: Expansion of the Listing Schedule of Monthly Options on Euro/US Dollar and Japanese Yen/US Dollar Futures Contracts – Effective: January 11, 2021
Effective Sunday, January 10, 2021, for trade date Monday, January 11, 2021, and pending all relevant Commodity Futures Trading Commission (“CFTC”) regulatory review periods, please be advised that the Chicago Mercantile Exchange, Inc. (“CME” or “Exchange”) will expand the listing of contract months for the products listed below on CME Globex, Open Outcry, and for submission for clearing only on CME ClearPort.
Tesla Is About to Join the S&P 500. How to Play It With Options.
Steven M. Sears – Barron’s
It’s an overstatement to assert that bullishly trading options on Tesla is like having a license to print money. But not much of one.
The stock has rallied so much this year that anyone with some cash has often effortlessly made money by selling puts, or buying calls, or even selling calls that are far above Tesla’s (ticker: TSLA) stock price. So far this year, the stock has gained 580%, sharply outperforming the S&P 500 index’s 14% gain.
Gold Falls to a Critical Threshold. Why Investors Should Take Note.
Evie Liu – Barron’s
After hitting a record high in the summer, the price of gold has been sliding over the past few months, as the stock market and Bitcoin keep hitting new highs.
The precious metal is now at a critical testing point. Gold might have lost some of its luster as an inflation hedge in favor of the cryptocurrency, but its long-term uptrend should remain intact.
The S&P 500 should keep advancing — but watch for these warning signs
Lawrence G. McMillan – MarketWatch
The S&P 500 index finally traded at new intraday and closing all-time highs, exceeding the gap opening of Nov. 9. There has been a brief pullback to the old highs (at 3644) to test the breakout. So far, the retest has held, and with this being a positive seasonal period for the market, stocks should be able to advance — even though November’s strong rally pushed a number of indicators into overbought territory (remember, overbought does not mean sell). There is further support at 3550, and then at 3500.
From Santa rally to the Grinch — there are three ways stocks will finish 2020, says this trader
Barbara Kollmeyer – MarketWatch
One month to go and we are done with 2020 — and good riddance to one dismal year. When it comes to stocks, though, the year is turning to a far less negative one than many expected, given a deadly pandemic.
There is still a small chunk of the year left to trade, and plenty of debate about whether we will see a so-called Santa rally that tends to occur towards the end of December and into early January, or if the markets are out of steam.
Option products will become the new needs for crypto exchanges
Press Release via Cointelegraph
Jeff Young, global CEO of BitWell and founder of Block Vision Capital told Cointelegraph China’s Hub event on Nov. 23 that as the crypto industry gradually matures, more services will be in demand. Option products providing mixed margins will become the new competitive products that crypto exchanges can provide to an increasing number of crypto users.