SGX 728x90 Banner

OCC reports highest volumes in its history in Q1 2021; CFTC cracks down on binary options – The Spread

Suzanne Cosgrove

Suzanne Cosgrove

Editor

 

Transcript:

Welcome to The Spread, I’m Matt Raebel.

Well, it’s the beginning of the month and you know what that means – that’s right, it’s the time when each exchange publishes its volume totals for last month.

The OCC reported Monday that total volume for March was up 34 point 8 percent from March of 2020. This makes March of 2021 the OCC’s hottest month ever for cleared equity options contract volumes. It also adds up to the highest quarter by contract volume in the OCC’s history.

The CME Group, MIAX, and Cboe also released their March and quarterly numbers this week, and those volumes also looked good. The CME Group reported that ADV for all agricultural options were up 27 percent for the first quarter compared to the first quarter of last year, and Cboe reported that its ADV for index options was up 19 percent from Q4 of 2020.

Meanwhile, the MIAX Exchange Group said they executed almost 117 million multi-listed options contracts for a combined ADV of 5 point 1 million contracts, representing a total U.S. multi-listed options market share of 13 point 65 percent; that market share represents an increase of over 18 percent from March 2020.

Besides trade volumes, both MIAX and Cboe announced some interesting news this week: From April 1 through l June 30, 2021, exchange fees for SPIKES futures have been reduced to zero. I asked Simon Ho, creator of the SPIKES index, if this was an April Fool’s joke, and he assured me in an email that it is not.

Cboe also announced that the Cboe Options Exchange will extend global trading hours for VIX and SPX options to almost 24 full hours a day, five days a week. If they’re gearing up to start doing things like the crypto markets do, they’re on the right track.

The CFTC ordered Glenn Olson, a man from Brooklyn, New York, to pay over 1 million dollars in penalties this week after the commission found him guilty of participating in a binary options scheme. He, along with his affiliates at a company called Blue Bit Banc, were also ordered to pay disgorgement and restitution for misrepresenting investments, laundering customer funds using cryptocurrency, and lots of other nefarious deeds that he admitted to doing.

We’ve got a lot of new content up on John Lothian News dot com, including an interview with SGX CEO Loh Boon Chye, and an interview with Colin Lambert, co-founder of a new publication called The Full FX, and another interview with Richard Sandor. Check those out at John Lothian News dot com and follow us on LinkedIn, Twitter and Facebook for more content. You can find links to all of those below this post.

That’s it for The Spread this week. Until next time, stay safe and happy trading.

++++

Get more news from JLN at http://www.johnlothiannews.com.
Follow us on Twitter at http://www.twitter.com/JohnLothian, http://www.twitter.com/MarketsWiki or www.twitter.com/JLNOptions.
Follow JLN on LinkedIn at https://www.linkedin.com/company/236044/admin.
Follow JLN on Facebook at https://www.facebook.com/johnlothiannews.

 

Sources:

OCC March 2021 Total Volume Up 34.8 Percent from a Year Ago
OCC
http://jlne.ws/2QZyZRq

CME Group Reports Q1 and March 2021 Monthly Market Statistics
CME Group
Http://jlne.ws/3dxlbFv

Miami International Holdings Reports March 2021 Trading Results, MIAX Exchange Group Sets New Monthly Market Share and Volume Records
PR Newswire
http://jlne.ws/3t0mfbq

Cboe Global Markets Reports March 2021 Trading Volume; European Equities ADNV up 9 percent and Global FX ADNV up nearly 4 percent over February 2021; Options ADV up 18 percent and U.S. Equities – Exchange Matched ADV up nearly 20 percent year-to-date; In March, Cboe successfully launched trading in Mini-Russell 2000 Index options and U.S. Equities Early Trading Hours
Cboe Global Markets, Inc.
https://jlne.ws/39OBlt0

Exchange Fees for SPIKES Futures are ZERO as of April 1, 2021
T3 Index
https://bit.ly/3dFLWYh

Cboe Options Exchange to Extend Global Trading Hours for VIX and SPX Options to Nearly 24 Hours-a-Day
Cboe
https://prn.to/3t7QrS0

CFTC Orders New York Man to Pay More than $1 Million for Role in Fraudulent Binary Options Scheme
CFTC
http://bit.ly/3mt0tL1

 

John Lothian Newsletter

Today’s Newsletter

Libor’s Final Days Begin With Push to Shake Up Swaps Market

Libor’s Final Days Begin With Push to Shake Up Swaps Market

First Read $51,906/$300,000 (17.3%) ++++ Hits & Takes John Lothian & JLN Staff The SEC issued an "Opinion of the Commission" on Monday in a case between ABN AMRO Chicago LLC and Chicago Board Options Exchange, Inc. and C2 Options Exchange, Inc. Here is a...

We visit more than 100 websites daily for financial news (Would YOU do that?)

Past The Spread Episodes

The Spread – July 23, 2021

The Spread – July 23, 2021

Volatility makes a return appearance as the Delta variant jangles nerves; Treasury bond yields perk up; July options expire; John Lothian chats with Cboe’s Ed Tilly about a World of Opportunity; UBS and SEC reach a settlement; FIA Tech expands; and the Options Institute’s Kevin Davitt explains why contract size matters in the “Term of the Week.”

The Spread – July 16, 2021

The Spread – July 16, 2021

Options traders torn between higher Inflation and steady Fed policy; June market share up at MIAX; John Lothian talks about a World of Opportunity; SEC charges binary options shop with fraud; Moscow Exchange set to offer quarterly options on U.S. stock index futures; and the Options Institute’s Kevin Davitt talks about implied volatility in the “Term of the Week.”

The Spread – July 9, 2021

The Spread – July 9, 2021

Chicago, a data destination; SEC, Robinhood and payment for order flow; John Lothian weighs in with his take; Retail trading continues to percolate; and Cboe’s Kevin Davitt explains the differences between equity and index options in the “Term of the Week.”

The Spread – July 2, 2021

The Spread – July 2, 2021

Finra socks Robinhood with its biggest-ever fine; Cboe acquires Chi-X Asia Pacific; OCC reports another volume gain; NIO takes its cue from options; John Lothian weighs in with his take; Looking for volatility; and Jermal Chandler explains hedging in the options “Term of the Week.”

Pin It on Pinterest

Share This Story