“Alex Perry’s Optionstopia” takes a look at this week’s options news highlights: FIA Removes MOEX Membership; David Howson to become Cboe President; LME Halts Nickel Trading
Options News Script
This week: The F-I-A removes the Moscow Stock Exchange’s membership; David Howson will become Cboe’s next President; and nickel trading is suspended.
This is Alex Perry with John Lothian News, and this is your recap of options news from the week. Here are some of the week’s top stories, starting with:
FIA removes the Moscow Exchange from membership
The Moscow Stock Exchange’s (MOEX) F-I-A membership is now null and void after the Futures Industry Association removed the MOEX from its membership list. The events surrounding Russia’s invasion of Ukraine prompted the FIA board of directors to take a vote and remove the MOEX. A few days earlier, the Cboe had “halted trading of shares and options in the VanEck Russia ETF,” which is worth hundreds of millions of dollars. FIA states that the MOEX’s membership removal is effective immediately. Consumer global franchises McDonald’s, Starbucks, and Coca-cola also cut ties with the country.
Cboe Global Markets Announces Senior Leadership Changes; Promotion of David Howson to President
Cboe Global Markets, Inc.
Changes of another stripe are occurring at the Cboe, which announced that it has a new president. The exchange promoted to president David Howson, current executive vice president. In this role, Howson will oversee operations including equities, derivatives, and the Cboe Options Institute — to name a few. Howson first joined the exchange in 2017 and has over two decades of experience in the industry. He’s set to start his new role as president on May 12, 2022.
CME Group Announces First Trades for 20-Year U.S. Treasury Bond Futures
The CME Group had a strong start to the week when its first day of trading the new 20-year U.S. Treasury Bond futures reached volume of more than 1,300 contracts. The exchange also had open interest of 1,041 contracts at the end of the day. The 20-year Treasury Bond futures were available for trading on Monday, March 7.
U.S. Probes Options Trade That Gained on Microsoft-Activision Deal; Entertainment-industry titans Barry Diller and David Geffen made purchases just days before the merger was announced
Dave Michaels, Jeffrey A. Trachtenberg – WSJ
Regulators are conducting an insider-trading investigation on options trades following the Microsoft-Activision merger. Entertainment business giants Barry Diller and David Geffen were two of three men to yield big profits — as much as “$60 million on the options trade,” according to The Wall Street Journal. The WSJ reports that the men bought options contracts to purchase shares of Activision only days before the Microsoft-Activision merger was announced. In response to the speculations, Barry Diller said that “It was simply a lucky bet.”
LME Halts Nickel Trading After Unprecedented 250% Spike; Top producer Tsingshan under pressure to meet margin calls; Prices spiked as short position holders scrambled to close out
Mark Burton, Jack Farchy, and Alfred Cang – Bloomberg
The nickel market has shown lots of volatility as the London Metal Exchange suspended trading on nickel contracts. Nickel prices had soared, at one point trading above $100,000 per ton, which Business Insider explained is ”the largest move ever on the exchange.” This could be problematic for the electric vehicle industry, given that nickel is used in electric-vehicle batteries. Bloomberg says that the metal’s price surge occurred when “investors and industrial users who had sold the metal scrambled to buy the contracts back after prices initially rallied on concerns about supplies from Russia.”
That’s all for now, but be sure to tune into this week’s edition of John’s Take. Also, be sure to check out our “Options Term of the Week,” presented by Euronext. We’ll be in Boca Raton next week for the FIA’s International Futures Industry Conference, and The Spread will resume the week after. To those attending, we’ll see you in Boca.
THIS HAS BEEN ALEX PERRY FOR JLN. THANKS, AND WE’LL SEE YOU NEXT TIME.