OCC reduces clearing fees; Coinbase CEO sells $292 million worth of COIN shares – The Spread

Matt Raebel

Matt Raebel

Editor

 

Transcript:

 

Welcome to The Spread, I’m Matt Raebel.

Options for Coinbase, the large crypto exchange that went to market last week with a valuation exceeding 100 billion dollars, began trading Tuesday on Nasdaq, Cboe’s BZX exchange, the Frankfurt Stock Exchange, and Deutsche Börse’s Xetra. Over 22 thousand options contracts traded hands by late afternoon on the first day, a week after trading began for the stock.

Shares for Coinbase are hot right now, and the company’s CEO, Brian Armstrong, is getting in on it, too – which seems a little gauche to me, but far be it from me to tell him how to live his best life. According to regulatory filings with the SEC, Armstrong sold about 292 million dollars’ worth of Coinbase stock on Nasdaq on the first day, or 749,999 shares.

Eurex announced this week that it has traded over 562,000 contracts’ worth of ESG derivatives in the first quarter of 2021, implying strong demand for ESG products. Surprise, surprise – when you tell your clients that they can invest in products that aren’t actively linked to the destruction of the planet, that tends to go over well with most people.

The SEC charged Spot Tech House Limited and two of its former top executives, Malhaz Pinhas Patarkazishvili – also known as Pini Peter – and Ran Amiran, with defrauding investors out of more than 100 million dollars through unregistered online sales of binary options. According to the charges, Spot Tech House developed a proprietary trading platform and marketed the options to retail customers as highly profitable investments while devising a payout structure that the SEC ruled as “manipulative.” You know, I’m starting to see a pattern here…

Gary Gensler officially became the new chair of the SEC on April 17 – surprise, surprise – after the Senate confirmed his nomination with a 53-to-45 vote, cementing his place as Wall Street’s top regulator in the Biden Administration. He’s got a tough job ahead of him – imagine having to clean up something like the GameStop (GME) short squeeze on your first day.

The OCC also had some changes in leadership. The company announced late last week that it has elected several new member and public directors, and that Craig Donohue was re-elected as executive chairman of the company. Maria Chiodi, Thomas A. Frank, and Stephen Luparello were unanimously elected as Class II Member Directors, Thomas R. Cardello – a founding member of the OCC – as well as Alice Patricia White were unanimously elected as Class III public directors.

The OCC also announced a reduction in clearing fees from four and a half cents to two cents per contract starting June 1, 2021, pending regulatory review. OCC Chief Executive Officer John Davidson and Chief Operating Officer Scot Warren said that because volumes in January and March of this year were so strong, the OCC is reducing clearing fees to pass the benefits on to market participants, so to speak. The OCC previously reduced clearing fees back in September 2020 from five and a half cents per contract to the current rate for similar reasons.

We’ve got a boatload of new content up on John Lothian News dot com, including two interviews with Tom Ascher, executive chairman of the board of Quantitative Brokers, part of our Open Outcry History Project. JLN Editor Thom Thompson also published a story about Cunningham Commodities and Cunningham Trading Systems combining with Plus500, a U.K. CFD trading platform; Thom also published an interview with Jim Marzano, which is part of our History of Financial Futures series. We’ve also got another interview with Intercontinental Exchange’s Lynn Martin, and a story on weight loss by Jessica Hehmeyer – that’s right, JLN is getting into publishing health and wellness content! I mean come on, with all of our cannabis coverage, it was only a matter of time.

Be sure to check out John Lothian News dot com and follow us on Twitter, LinkedIn and Facebook for more news and musings. And that’s gonna do it for The Spread this week, so until next time, stay safe and happy trading.

 

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Sources:

 

Options on Coinbase Global start trading in robust volume
Saqib Ahmed – Reuters
https://reut.rs/3tFyFpu

Coinbase Global Inc COIN.O
Reuters
https://reut.rs/3tFeurV

Coinbase Chief Executive Armstrong sold $291.8 million in shares on opening day
Reuters
https://reut.rs/2RITVMT

SEC Charges Binary Options Trading Platform and Two Top Executives with Fraud
SEC
https://bit.ly/3v5pq2d

Trend towards sustainable investing strengthening derivatives inflows – ESG products hit new trading record in Q1 2021
Eurex
https://bit.ly/3mWGHYr

Biden Pick Gary Gensler Is Sworn In as SEC Chairman
Erik Wasson and Benjamin Bain – Bloomberg
https://bloom.bg/3eh0jCE

OCC Elects Executive Chairman, Member and Public Directors at 2021 Stockholder Meeting
OCC
https://bit.ly/3smXN2P

OCC Announces Clearing Fee Reduction to Two Cents Effective June 2021
OCC
https://bit.ly/32oZ4Mm

OCC Congratulates New SEC Chair Gary Gensler
OCC
https://bit.ly/3duvlHX

Tom Ascher – Open Outcry Traders History Project – Part One
John Lothian – JLN
https://bit.ly/3xa3epD

Tom Ascher – Open Outcry Traders History Project – Part Two
John Lothian – JLN
https://bit.ly/3atquVR

Cunningham Commodities To Tie Up With UK CFD Platform
Thom Thompson – JLN
https://bit.ly/3v1DHwK

Intercontinental Exchange’s Lynn Martin Walks JLN Through New Ice Portfolio Auction Platform
John Lothian – JLN
https://bit.ly/3tHdMKH

The 5 Essential Shifts Of Weight Loss Mastery
Jessica Hehmeyer – Medium via JLN
https://bit.ly/3ekJnv5

Jim Marzano – The History Of Financial Futures
Thom Thompson – JLN
https://bit.ly/3xheRe6

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