Refinitiv FX Volumes Drop in October as Lackluster Activity Weighs; Aggregated open interest on Bitcoin, Ethereum options hit all-time highs this weekend

Nov 24, 2020

$16,111/$300,000 (5.4%)

Observations & Insight

MR: The OCC’s cleared volume Friday was 28.6 percent higher than its YTD average.

Lead Stories

Refinitiv FX Volumes Drop in October as Lackluster Activity Weighs
Aziz Abdel-Qader – Finance Magnates
Swaps and options volumes at Refinitiv, partly owned by Thomson Reuters, have held up much better than spot FX volumes. Foreign exchange trading volumes across Refinitiv Matching and FXall platforms dropped in October 2020 by more than three percent from the previous month, the company said on Monday. This weak monthly turnover was in line with metrics of industry peers as corona-led volatility that sparked record trading has been losing steam.
/bit.ly/362sORL

Aggregated open interest on Bitcoin, Ethereum options hit all-time highs this weekend
MK Manoylov – The Block
The aggregated open interest on bitcoin options reached $4.53 billion on Nov. 22, having grown $1.13 billion since Nov. 15. That’s nearly a 25% increase in a week, according to data from The Block Research. In addition to Bitcoin, the aggregated open interest on Ethereum options reached $780.05 million. Ethereum option open interest jumped $221.09 million, or 39.5%, in a week, according to The Block Research.
/bit.ly/3m1UyeS

Exchanges and Clearing

Euronext announces 2021 holiday calendar for its cash and derivatives markets
Euronext
Euronext today announced the 2021 trading days for its markets in Amsterdam, Brussels, Dublin, Lisbon, Oslo and Paris.
The Euronext Cash Markets, Euronext Block, and the Euronext Derivatives Markets will be open Monday to Friday throughout 2021 except on the following days:
/bit.ly/33ezU3N

MIAX Exchange Group – Options Markets – Series Made Non-Tradeable in Qurate Retail, Inc. (QRTEA)
MIAX Options
The following series in Qurate Retail, Inc. (QRTEA) have been made non-tradeable on the MIAX Options Exchange, MIAX PEARL Options Exchange and MIAX Emerald Options Exchanges effective for today, Tuesday, November 24, 2020:
Option Expiration Strike Price
QRTEA 12/18/2020 1.00
QRTEA 7/16/2021 1.00
/bit.ly/378JWV8

MIAX Exchange Group – Options Markets – Delisting of Telefonica Brasil S.A. (VIV)
MIAX Options
Telefonica Brasil S.A. (VIV) will be de-listed from the MIAX Options Exchange, MIAX PEARL Options Exchange and MIAX Emerald Options Exchange effective on Tuesday, November 24, 2020. All GTC orders resting on the MIAX order books in VIV have been canceled.
/bit.ly/3m1aC0x

MIAX Exchange Group – Options Markets – Corporate Action Alert: CVR Partners, LP (UAN)
MIAX Options
CVR Partners, LP (UAN) has announced a 1-for-10 reverse stock split effective for Tuesday, November 24, 2020. On that date, the current UAN option class will change to UAN1. The MIAX Options Exchange, MIAX PEARL Options Exchange and MIAX Emerald Options Exchange will not list UAN1 options. Therefore, no options on UAN will be available for trading on Tuesday, November 24, 2020.
/bit.ly/39bP1P7

Expansion of the Listing Schedule of Monthly Options on Euro/US Dollar and Japanese Yen/US Dollar Futures Contracts
CME Group
Effective Sunday, January 10, 2021, for trade date Monday, January 11, 2021, and pending all relevant Commodity Futures Trading Commission (“CFTC”) regulatory review periods, Chicago Mercantile Exchange Inc. (“CME” or “Exchange”) will expand the listing schedule of monthly options on the Euro/US Dollar (“EUR/USD”) futures contract and the Japanese Yen/US Dollar (“JPY/USD”) futures contract (the “Contracts”) for trading on the CME Globex electronic trading platform (“CME Globex”) and for submission for clearing via CME ClearPort as noted in the table below.
/bit.ly/3lXrh4R

Expansion of the Listing Schedule of Monthly Options on Euro/US Dollar and Japanese Yen/US Dollar Futures Contracts
CME Group
Effective Sunday, January 10, 2021, for trade date Monday, January 11, 2021, and pending all relevant Commodity Futures Trading Commission (“CFTC”) regulatory review periods, Chicago Mercantile Exchange Inc. (“CME” or “Exchange”) will expand the listing schedule of monthly options on the Euro/US Dollar (“EUR/USD”) futures contract and the Japanese Yen/US Dollar (“JPY/USD”) futures contract (the “Contracts”) for trading on the CME Globex electronic trading platform (“CME Globex”) and for submission for clearing via CME ClearPort as noted in the table below
/bit.ly/3lXrh4R

Regulation & Enforcement

ESAs propose to adapt the EMIR implementation timelines for intragroup transactions, equity options and novations to EU counterparties
ESMA
The European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA), the European Supervisory Authorities (ESAs), have today published a final report with draft regulatory technical standards (RTS) proposing to amend the Commission Delegated Regulation on the risk mitigation techniques for OTC derivatives not cleared by a CCP (bilateral margin requirements) under the European Market Infrastructure Regulation (EMIR).
/bit.ly/35Y6vfS

Technology

Binance to List Options Contracts for Litecoin
Sebastian Sinclair – Coindesk
Cryptocurrency exchange Binance is to offer options contracts for the world’s seventh largest cryptocurrency, litecoin. According to a blog post on Tuesday, the litecoin (LTC, +0.37%) contracts will go live on Wednesday at 07:00 UTC. A Binance representative told CoinDesk via email that the latest listing comes in response to “user demand,” adding that options are an “important hedging tool, especially during a market rally.” Options are a type of financial instrument enabling traders to buy or sell an underlying asset at a predetermined price either before or on a particular date.
/bit.ly/3kWoWpv

Virtu and MarketAxess ETF analytics tool receives backing from ETF issuers
Annabel Smith – The Trade
Virtu Financial has confirmed it has onboarded two wealth management firms to its recently launched eNav exchange traded funds (ETFs) analytics tool.
Charles Schwab Investment Management and WisdomTree Asset Management have become clients of the service, which calculates the bid and ask prices of ETFs based on their underlying components and/or proxy assets to offer greater transparency for ETF valuations.
The eNAV ETF analytics features the artificial intelligence powered algorithmic pricing engine for corporate and emerging bonds, Composite+, from MarketAxess after both firms entered into a partnership last year.
/bit.ly/35XEcOS

Strategy

Be Like Buffett and Wager on Pfizer. Here’s How to Do It With Options.
Steven M. Sears – Barron’s
In the annals of corporate endeavors, Pfizer is one of the few that can say that their contributions truly contributed to the betterment of mankind. The pharmaceutical company has quickly developed a vaccine for Covid-19, which could help end the global pandemic that has turned 2020 into a year that has harmed most everyone. Pfizer has asked the Food and Drug Administration to approve its vaccine for distribution, a decision that could return us all to a more normal life, where we can gather with friends and family without worrying about deadly infections.
/bit.ly/3l2GWyK

Events

Asia Derivatives Conference
FIA.org
Join us virtually in December!
1 December 2020 – 3 December 2020 • 9:00 AM – 3:00 PM SGT Daily
Our annual Asia Derivatives Conference provides unique opportunities for the cleared derivatives community to build an understanding of how global forces and regional trends and issues are shaping Asia-Pacific markets. Register now and join us virtually, 1-3 December, to gain insights into what’s on the horizon for the Asia-Pacific region.
/bit.ly/36HKNMl

Miscellaneous

(Podcast) Volatility Views 424: A Heavy Weight On Volatility
Volatility Views – Options Insider Podcast
/bit.ly/2KtPSQV

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