“Alex Perry’s Optionstopia” takes a look at this week’s options news highlights: Cboe Europe’s New Equity Index Products; FIA hits record volumes; SEC Kicks Off Scholars Program Applications
Options News Script
This week: Cboe launches new equity index products, FIA hits record volumes, and the SEC opens its internship program.
This is Alex Perry with John Lothian News, and this is your recap of options and market news from the week. Here are some of the week’s top stories.
Cboe Europe Derivatives To Launch New Equity Index Products
Cboe Global Markets announced that it’s launching new equity index futures and options products on the Cboe Europe Derivatives Exchange (CEDX) [Alex’s note to herself: pronounced ‘Sed-Ex’] toward the end of the month. CEDX, Cboe’s Amsterdam-based equity derivatives exchange, will launch futures and options on four additional Cboe Europe single country benchmarks: the Cboe Italy 40, Cboe Norway 25, Cboe Spain 35 and Cboe Sweden 30. Cboe says that adding these new products will bring the total number of products available for trading on CEDX to 20. The products will be available for trading starting April 27th.
The CME Group has issued a statement regarding its All-or-None transactions. In its Market Regulation Advisory Notice, the exchange said that the notice “
is being issued [to] enable All-or-None (“AON”) transactions for open outcry trading of Options on Three-Month SOFR Futures, Options on One-Month SOFR Futures and all Options on Three-Month Eurodollar Futures.” The advisory notice is pending CFTC regulatory review and will be effective on May 2, 2022.
ETD Volume – March 2022
The FIA has released its volume and open interest numbers for March 2022. The report included data on its worldwide volume of exchange-traded derivatives of 6.85 billion contracts in the month of March, the highest monthly total ever recorded. The total March ETD options volume was 4.2 billion contracts. The FIA also notes that its March total was up 10% from February 2022 and up 23% from March 2021.
Citadel Securities forks out $2.6 billion annually for payment for order flow and most of it’s on options
Annabel Smith – TheTrade
Citadel Securities is shelling out the big bucks – in fact, it spent $2.6 billion for payment for order flow (PFOF) in 2020 and 2021, with well over half… being spent on options. This was the most any market maker spent for payment for order flow in those two years. According to The Trade, “Equities makes up a small portion of PFOF, accounting for around $877.5 million of Citadel Securities’ spend, with $1.7 billion of its $2.6 billion spent on options flow.”
Netflix stock plunges 37% on shocking subscriber loss
Your favorite streaming service is facing some setbacks. Netflix stocks plunged a whopping 37% Wednesday morning after losing around 200,000 customers in the first quarter. Netflix is bracing for the worst, as the streaming giant expects to lose another 2 million customers in the current quarter, according to Bloomberg Law. CNBC said that Netflix blames the drop on “competition and easing pandemic restrictions,“ and the Washington Post said it was partly due to Netflix pulling out of Russia. It was also reported that other streaming services like Disney, Roku, and Paramount took a dive.
SEC Scholars Program
U.S. Securities and Exchange Commission
Lastly, the SEC is accepting applications for its SEC Scholars Program, which will begin in the fall. The paid internship is ten weeks long and is open to enrolled undergraduate and graduate students. The program offers student trainee positions in law and program support and it is set to start on August 29. The application deadline is April 22.
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 a friendly reminder that the 40th annual Options Industry Conference is fast approaching and will be held on May 10-12 in San Antonio, TX.
THIS HAS BEEN ALEX PERRY FOR JLN. THANKS, AND WE’LL SEE YOU NEXT TIME.
John’s Take – Cboe Empowers Scholarships Surprise Ceremony Gets a Closer Look
John takes a look at the recent Cboe Empower’s surprise scholarship award ceremony in an interview with Cboe’s Community Impact Manager, Kelli Haywood.
Term of the Week
TERM OF THE WEEK: This week’s Term of the Week presented by Euronext Knowledge Centre is Intrinsic Value of Cash Settled Options.