This week on The Spread, Cboe celebrates its 47th anniversary with charitable donations and extends a bountiful business deal, the NYSE Arca options trading floor is rumored to reopen next week, and more.
Produced by Mike Forrester.
Welcome to The Spread. We’ve got a lot of exchange news this week.
For starters, Cboe’s CEO Ed Tilly published a blog on Cboe’s website, which JLN’s Suzanne Cosgrove reported on in our newsletters. In the blog post, Tilly recognized the 47th anniversary of Cboe’s founding – which was on April 26th. He also mentioned that Cboe is donating patient isolation units, or PIUs, for healthcare facilities in the U.S. and UK. Suzanne’s report also mentioned that the first units will be sent to New York City, where the need is currently greatest, so that NYC police and fire departments can make good use of them as soon as possible. From what I’ve heard about what New York is going through now, I’m sure nobody’s gonna “pooh-pooh” free PIUs.
Cboe also extended its exclusive deal with FTSE Russell originally signed in 2015 that will allow the exchange to create and list options products on Russell-based indices until 2030. The Russell 2000 option products’ trade value is about $2 trillion a year, so the partnership with Cboe makes the two a real power couple. Maybe someone should come up with a name for them, a la Brangelina or Kimye? FTCboe? CbTSE? Come back to me, I’ll think of something better.
Cboe also announced during its earnings call on Friday, May 1st, that it set new quarterly records for total options and FX volumes last month; executives also revealed that Cboe aims to re-open its trading floor on June 1st, depending on how the coronavirus situation develops between then and now.
While we’re on the subject of exchange news, the CME’s earnings report this week confirmed that high volatility led to a handsome profit in the exchange’s derivatives products. The NYSE also announced that NYSE Arca’s Options trading floor in San Francisco might reopen soon, though stringent safety protocols will be enforced. Reports indicate that requiring traders to drink sanitizing agents will not be included in said protocols.
DASH Financial released a nifty new regtech product this week, called DASH 360R. It automates the process of calculation and reporting capital charges for broker-dealers, who are required by the SEC and FINRA to do so on an intraday basis, so you can save the paper you used to use for calculations for paper airplanes to throw at that one ag trader you don’t like – when and if the floors open again, that is.
JLN published an interview this week with Julie Armstrong, the CCO of ChartIQ. It’s never been a better time to be or become tech-savvy, and in the interview Armstrong made a compelling case for why the fintech scene has enjoyed plenty of advantages during the quarantine. Maybe someone at her firm can help me disable this awful “Tiger King” background I downloaded for Zoom.
That’s gonna do it for The Spread this week. Thanks for watching; hang in there, and happy trading. We’ll see you next time.
Chartiq’s Julie Armstrong On The Challenges Of The Covid-19 Outbreak
Cboe Global Markets and FTSE Russell Extend Licensing Agreement Through 2030
GOLDMAN SACHS: Global oil storage could be maxed out in just 3 weeks, driving ‘substantial volatility’
Ben Winck – Markets Insider
NYSE to reopen San Francisco-based options floor next Monday
John McCrank – Reuters
NYSE Arca Options Trading Floor to Partially Reopen May 4
Traders Magazine (press release)
CME Earnings Got a Strong Boost From Volatile Futures Trading
Bill Alpert – Barron’s
DASH Regulatory Technologies Launches SaaS-Based Version of Industry-Leading Regulatory Capital Compliance Suite
DASH Financial Industries
Reflecting on 47 Years of Defining Markets
Ed Tilly – Cboe blog
Cboe Global Markets Reports Record Results for First Quarter 2020
Cboe (press release)