The Spread: Brexit Stage Right

 

This week on The Spread, MIH and MGEX complete their merger, Cboe’s Chief Marketing and Communications Officer Carol Kennedy and the CFTC’s Chairman Heath Tarbert announce their retirement, and more.

Produced by Mike Forrester.

 

Transcript:

Welcome to The Spread, I’m Matt Raebel. Lots of news this week; usually, the run-up to Christmas means not a lot’s going on, but this is 2020! Anything is possible! To kick things off, the CME Group announced an impressive milestone this week – evidently the exchange’s Micro E-Mini equity options are still changing hands like they’re laced with the coronavirus vaccine. Over 500 thousand contracts have been traded since the exchange launched them on August 31. Clearly, these things are getting popular. Miami International Holdings and the Minneapolis Grain Exchange announced they had completed their merger late last week. Both MIH and MGEX seem giddy to continue working together, so much so that they’ve already announced the return of SPIKES Futures on the Minneapolis exchange, starting December 14th. Meanwhile, ICE Futures Europe announced the launch of options on SONIA futures, which are based on three-month SONIA  – that’s Sterling Overnight Index Average – index futures, saying it’s the first trading venue to launch options on the SONIA index. Handy timing with the Brexit deadline looming. Speaking of Brexit, the U.K.’s Prime Minister Boris Johnson warned businesses and the general public this week to prepare for a no-deal Brexit. What can I say but “yikes.” Well, at least the London Stock Exchange has been preparing for this already, because the LSE’s new U.S. credit index options clearing business went live early this week through the exchange’s CDS clearing house, CDSClear. Something tells me the U.S. and U.K. are about to start doing a lot more trading, and I’m not talking about trading in their current tow-headed heads of state for new leadership. Cboe announced the future departure of its Chief Marketing and Communications Officer, Carol Kennedy, who has spent 27 years with the company. Kennedy will step down December 31, and her successor Stacie Fleming will be promoted to senior vice president of marketing and communications starting January first. Gotta admire the efficiency. Must be convenient to have someone already on hand to take up the duties of their predecessor. Not that I know what that’s like. Anyway, to round things off this week, the CFTC’s Chairman Heath Tarbert also announced he’s stepping down in early 2021. Though he’s only been in the chairman seat since mid-July of last year, it’s been a busy 17 months for Tarbert – in fact, earlier this week, the CFTC published a statement by him in support of some new rules regarding electronic trading. It’s unclear who will take his place, but I’m sure we’ll hear about it closer to the new year. That’s gonna do it for this week, until next time, stay safe and happy trading.

 

Sources:

Micro E-mini Equity Options Surpass 500,000 Contracts Traded
PR Newswire
https://prn.to/2IHzFY4

Miami International Holdings Completes Acquisition of Minneapolis Grain Exchange
MIH
https://prn.to/3n5339l

MIAX and MGEX Announce SPIKES Futures December 14 Relaunch
PR Newswire
https://prn.to/3gyH5ZY

SONIA options go live at ICE
Annabel Smith – The Trade
https://bit.ly/2IkFgTM

Boris Johnson Says Prepare for No EU Trade Deal After Brexit
Alex Morales and Joe Mayes – Bloomberg
https://bloom.bg/2JS2rpo

LCH CDSClear launches US credit index options clearing
Annabel Smith – The Trade
https://bit.ly/3mUbXqi

Cboe Global Markets Announces Planned Retirement of Chief Marketing and Communications Officer, Appoints Successor
PR Newswire
https://prn.to/2IyPSyv

CFTC’s Tarbert Says He’ll Step Down as Chairman Early in 2021
Lydia Beyoud and Benjamin Bain – Bloomberg
https://bloom.bg/3n1JvTo

Statement of Chairman Heath P. Tarbert in Support of the Final Rule on Electronic Trading Risk Principles
CFTC
https://bit.ly/2VTZRkX

 

 

John Lothian Newsletter

Today’s Newsletter

London Stock Exchange to abandon lossmaking derivatives venture

London Stock Exchange to abandon lossmaking derivatives venture

First Read $53,406/$300,000 (17.8%) ++++ Hits & Takes John Lothian & JLN Staff The London Stock Exchange has given notice that CurveGlobal is to be closed effective Friday, the 28th of January, 2022. CurveGlobal's CEO Andy Ross had this to say on LinkedIn...

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Past The Spread Episodes

GameStop disappoints; Coinbase gets into it with the SEC; Cboe offers Europe options; MIAX Spikes a record; John’s Take on CBOE’s Phil Slocum’s passing and a great moment in options history; and how to execute a strangle  — The Spread — September 10, 2021

GameStop disappoints; Coinbase gets into it with the SEC; Cboe offers Europe options; MIAX Spikes a record; John’s Take on CBOE’s Phil Slocum’s passing and a great moment in options history; and how to execute a strangle — The Spread — September 10, 2021

– Options markets get ready for fall’s chill as equity prices consolidate; Another perspective on small investors;
– John’s Take pays homage to an options veteran and looks at a moment in options market history;
– Pros and cons of using options strangles with Jermal Chandler in the Term of the Week.

Options Traders Brace for Fall; OCC Sets Record; John’s Take on Financial Journalists; Straddling Uncertainty – The Spread – September 3, 2021

Options Traders Brace for Fall; OCC Sets Record; John’s Take on Financial Journalists; Straddling Uncertainty – The Spread – September 3, 2021

In this week’s options news: Delta variant dents U.S. jobs data; Will fall bring a further equity market correction?; Options volume robust despite dog days of August; Cboe and Nasdaq post near tie for most options traded; A tribute to a departing crypto journalist in John’s Take; and Jermal Chandler explores the use case for straddles in the options “Term of the Week.”

Fed’s Powell Takes Center Stage; New Company Offers Options Solutions; Explaining Volatility Skew – The Spread – August 27, 2021

Fed’s Powell Takes Center Stage; New Company Offers Options Solutions; Explaining Volatility Skew – The Spread – August 27, 2021

In this week’s options news, the Fed’s Jackson Hole pronouncements placate the markets; meme stocks take off on a lark; volatility skew rises as traders remain divided; bitcoin and ethereum options hunker down ahead of expiration and Eurex plans to launch a first; John’s Take looks at a new options business with seasoned players; And Jermal Chandler kicks off this week’s options “Term of the Week” with the important concept of volatility skew.

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