Cboe To Launch New Equity Index Products; FIA hits record volumes; SEC Kicks Off Scholars Program Applications

Alex Perry’s Optionstopia 

“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

/jlne.ws/3KW5eId

 

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.

 

All-or-None Transactions

CME Group

/bit.ly/36u1ZsO

 

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

FIA

https://www.fia.org/resources/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

/jlne.ws/3jMfdE0

 

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

CNBC

https://www.cnbc.com/2022/04/20/netflix-plunges-trading-subscriber-loss.html

 

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

https://www.linkedin.com/posts/us-securities-and-exchange-commission_the-sec-is-actively-recruiting-for-the-sec-activity-6920795854803001344-289Z/?utm_source=linkedin_share&utm_medium=member_desktop_web

 

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.

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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.

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Today John Lothian News is kicking off a new segment of The Spread called Options Discovery, hosted by Alex Teng.  In this series viewers will learn the ins and outs of options along with Alex. He will take viewers through a wide variety of topics in the options industry, aided by interviews with experts and his own research.

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Options Discovery

Options Discovery

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Today John Lothian News is kicking off a new segment of The Spread called Options Discovery, hosted by Alex Teng.  In this series viewers will learn the ins and outs of options along with Alex. He will take viewers through a wide variety of topics in the options industry, aided by interviews with experts and his own research.

John’s Take

John’s Take: Why I hate Chuck Mackie and Thoughts on FTX’s CFTC Request

John’s Take: Why I hate Chuck Mackie and Thoughts on FTX’s CFTC Request

I have a love/hate relationship with Chuck Mackie. I love him because he is a great guy, good citizen and cheerful practitioner of solving the world’s problems with market based solutions. I hate him because he really knows how to make me work, and work hard. Don’t worry, there are others on this list too (Hello Barbara).

On Thursday Chuck emailed me and asked when I was going to write a comment letter for the FTX request to the CFTC for LedgerX LLC, doing business as FTX US Derivatives, “to amend its order of registration as a DCO to allow it to modify its existing non-intermediated model.”

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