Goldman Sachs Executes First Crypto Options Trade; ICE Launches Global Brand and Ad Campaign; Alex Reflects on FIA Conference

This week: Goldman Sachs executes its first over-the-counter crypto options trade, ICE launches a global advertising campaign… and I’ll share my first ever experience from last week’s conference in Boca Raton, FL. 

This is Alex Perry with John Lothian News, and this is your recap of options news from the week. But before we get into this week’s top stories, here’s  a brief recap of last week’s FIA Boca conference:

We are BACK from Boca! Over the course of three days, the JLN team conducted 30 interviews, attended panels that included the likes of Sam Bankman-Fried and Alex Rodriguez, and met with plenty of exchange leaders that were happy to be at the FIA’s International Futures Industry Conference.  The conference was held at the beautiful Boca Raton Resort, and there was tons of food, booths, and swag. Unfortunately, there were no outdoor activities, because it rained for most of the conference. My birthday is today, and as a birthday gift to myself, I scored this F-I-A bucket hat! This was also my first Boca, which was an amazing experience. I’m especially thankful to John’s kids Kat and Robby Lothian, who helped out with all of the manning equipment. Stay tuned for lots of new JLN-exclusive interviews coming soon. 

Now… onto the news.

Goldman Sachs Conducts Its First OTC Crypto Options Trade With Galaxy Digital

Yueqi Yang – Bloomberg

/jlne.ws/3Ju78PV

Goldman Sachs dives deeper into the crypto universe by offering cryptocurrency options trading with Galaxy Digital. Bloomberg reported that this week the investment banking company performed its first over-the-counter crypto options trade, trading a “non-deliverable Bitcoin option,” which the news source explains is “a derivative tied to Bitcoin’s price that pays out in cash.” It was also reported that the capital market company Galaxy Digital Holdings had facilitated the deal. Back in 2009, cryptocurrency wasn’t immediately embraced by Wall Street banks, but 13 years later, Bloomberg notes that it’s grown in popularity, and that “options are used by crypto investors to hedge risks or boost yields, and over-the-counter transactions are typically larger trades negotiated privately.”

Options mavens see stock rebound as chance to pick up downside protection

Saqib Iqbal Ahmed – Reuters

/jlne.ws/3Lchrbt

The Cboe Volatility Index, a volatility measure based on S&P 500 index options prices,  “fell to a five-week low of 22.81 on Tuesday, just two weeks after closing at a one-year high,” according to Reuters. Reuters notes that experts “say the recent gains could be fleeting and are advising clients to buy hedges against volatility…”

ICE Launches Multi-Faceted Global Brand and Advertising Campaign

Intercontinental Exchange, Inc.

https://ir.theice.com/press/news-details/2022/ICE-Launches-Multi-Faceted-Global-Brand-and-Advertising-Campaign/default.aspx

The Intercontinental Exchange launched a global ad campaign with a message to “Make the Connection.” ICE stated that this new campaign is part of the company’s two-year “One Company, One Brand” initiative. Within the ad campaign, ICE also seeks to update the branding for the New York Stock Exchange – a branding problem that dates back to pre-ICE days at NYSE-Euronext. As part of the ad campaign, there’s also a TV commercial that includes influencers such as Zak Brown, the CEO of McLaren Racing, and Erin Ashley Simon, who is celebrated as one of the most prominent Black women in Esports and gaming. 

CFTC Awards Approximately $10 Million to a Whistleblower

Commodity Futures Trading Commission

https://www.cftc.gov/PressRoom/PressReleases/8502-22

In regulatory news, whistleblowers are cashing in on millions of dollars upon providing information to the SEC and the CFTC. Last week the Securities and Exchange Commission awarded a total of $3 million for intel leading to three separate investigations and ever since 2012, the regulator has been awarding money to whistleblowers and has awarded over $1 billion to more than 250 people since the start of of the SEC whistleblower program. As for The Commodity Futures Trading Commission, it announced on the same day (March 18th) that it awarded approximately $10 million to a whistleblower, who “voluntarily provided original information that led the CFTC to open an investigation.” The CFTC’s Whistleblower Program has been awarding individuals since 2014, and for both the SEC and the CFTC, whistleblowers can get between 10% and  30% of sanction money collected.

That’s all for now, but be sure to tune in to this week’s edition of John’s Take. Also, be sure to check out our “Options Term of the Week,” presented by Euronext. Just as one conference ends, another one begins. The 40th annual Options Industry Conference is fast approaching and will be held May 10-12 in San Antonio, TX.

THIS HAS BEEN ALEX PERRY FOR JLN. THANKS, AND WE’LL SEE YOU NEXT TIME.