The Spread: Going Virtual

Matt Raebel

Matt Raebel

Editor

This week on The Spread, Robinhood announces safety rails to protect inexperienced traders from themselves, JLN covers the first-ever totally virtual IDX, and more.

Produced by Mike Forrester.

Transcript

Welcome to The Spread, I’m Matt Raebel. Unfortunately, there’s a lot of sad news this week, so I’m going to get it out of the way first so we can try to end today on a high note. It’s quadruple witching season, and speaking of witches there does seem to be a certain…malevolent energy in the air. Tragic news came late last week when twenty-year-old Alex Kearns, an amateur trader who spent a lot of time trading options on Robinhood, was found dead by suicide after losing seven hundred and thirty thousand dollars on the app. A note left by Kearns said that he’d had no idea what he was doing, and Robinhood later announced it would add some guardrails to its app that would hopefully protect young traders like Kearns from such losses in the future. Separately, FINRA announced the passing of Thomas Gira, executive vice president of market regulation and transparency services, who died at age 58. We also lost Mark Thornberry, a longtime derivatives technology sales professional, at age 59. John Lothian wrote a piece remembering Thornberry, which you can read on our site. Our condolences to the friends and family of all of these people. Now for some good news: despite the coronavirus, IDX-V happened, and JLN was there to report on it, even as we were hunkered down in our homes. Almost the entire JLN editorial staff – John, Sarah Rudolph, Suzanne Cosgrove, Thom Thompson, and I wrote at least one article covering different panels from the show, so if you missed out you can still check out our coverage on the JLN website. I’ll drop this little teaser as well – a large amount of each discussion mmmaayyyy have been about the pandemic. Cryptocurrency options continue to get more popular; TradingScreen Inc., a subsidiary of a cryptocurrency order and execution management system called “MARKTS,” a company spelled like it was trying to save money on vowels, teamed up with the popular cryptocurrency derivatives platform Deribit to allow institutional traders to get in on digital asset derivatives trading. As I’ve mentioned before on this show, cryptocurrency options don’t…quite work exactly like regular options, but cryptocurrency derivatives like Deribit’s and those of the CME, for example, have nonetheless proven to be quite popular in the digital asset space. That’s it for this week – check out the links below for shortcuts to the articles from our IDX-V coverage. Thanks for watching The Spread, we’ll see you next week. Until then, happy trading.

IDX-V Coverage

FIA IDX-V: ESMA’s Verena Ross on Regulation and Priorities During COVID-19
Suzanne Cosgrove – JLN
https://bit.ly/2Zfkdq3

Exchange Leaders at IDX-V Tout Technology, Flexibility in Weathering the COVID Crisis
Sarah Rudolph – JLN
https://bit.ly/3864xd6

Industry Leaders Describe COVID-19’s Impact on the Markets
Matt Raebel – JLN
https://bit.ly/31qBRKx

FIA IDX-V: ‘No Victory Laps,’ but Systems Clear Amid Pandemic-Infused Volatility
Suzanne Cosgrove – JLN
https://bit.ly/2NuxW76

Brent Crude: Global Benchmark
Thom Thompson – JLN
https://bit.ly/2BGVJhC

Lessons Learned In Real Time
John Lothian – JLN
https://bit.ly/3eBCjt9

FIA IDX-V: Global Economy Far From Equilibrium, CME Economist Says
Suzanne Cosgrove – JLN
https://bit.ly/3eCEUmw

Commodity Focus Closes IDX-V
Thom Thompson – JLN
https://bit.ly/2NxJeYi

Sources:

 

Robinhood details possible changes to options offering after suicide by customer
John McCrank, Anna Irrera – Reuters
https://reut.rs/37ORkVO

FINRA Announces Passing of Thomas Gira, EVP, Market Regulation and Transparency Services
Traders Magazine (press release)
https://bit.ly/2NmLxxf

Remembering Mark Thornberry
John Lothian – John Lothian News
https://bit.ly/3fTKpxe

Federal Banking Agencies Ease Volcker Rule Restrictions
AP via the New York Times
https://nyti.ms/2YyzLGy

TradingScreen’s MARKTS Partners with Deribit on Crypto Options Trading
Traders Magazine (press release)
https://bit.ly/2Bznmcf

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