The Spread: Married to The Job

 

This week on The Spread – Ed Tilly gives a take on the state of the markets, an industry veteran joins the MIAX Exchange Group, open interest grows for bitcoin options at the CME, and more.

Produced by Mike Forrester.

Transcript:

Welcome to The Spread, I’m Matt Raebel. This week, Cboe made a couple of big announcements: they’re presenting at Deutsche Bank’s 10th Annual Global Financial Services Conference, which will be held virtually on May 27, and they’re breaking new ground in Canada through the acquisition of Virtu’s MATCHNow dark pool, which Cboe’s Chairman and CEO Ed Tilly said was part of Cboe’s ongoing attempts to improve its time-of-trade data services for customers. Tilly said this during a webinar interview Thursday with Greenwich Associates’ Managing Director, Kevin McPartland. Tilly talked about the importance of Cboe’s trading floor and compared trading with a floor broker to buying a car at a dealership – he said in both cases, customers have an easier time negotiating for the best price if it’s in person. Just remember not to get the undercoating. JLN published a writeup about it on our site, which you should check out. JLN also published two new Open Outcry videos this week for Maureen and Chess Obermeier, the founders of Moe Options. Maureen and Chess originally met on the Cboe trading floor, later getting married and starting the business they’ve run together for decades. Why didn’t they stay on the floor? I guess they figured they could make Moe money themselves. (Rimshot) I’m terrible. I’m gonna give a quick shoutout to Lance Emmons, who recently joined Miami International Holdings – or MIH, the parent company of the MIAX Group – as executive vice president and chief financial officer.  Emmons has over two decades of experience from working at the International Securities Exchange as well as a number of tech firms, and his role will largely consist of risk analysis and strategic planning. Speaking of financial technology, the crypto news site The Block reported that open interest for options on the CME’s bitcoin futures quadrupled overnight, according to new data from Skew Analytics. Between May 11th and 14th open interest went from $35 million to $142 million; bitcoin’s halving event – which you can read more about on CryptoMarketsWiki – took place on May 12. Historically there has been a lot of price movement around the Halving, which may explain the sudden surge in positions being written and traded; after all, nobody ever accused bitcoin of being “not volatile enough.” That’s it for this week! Stay safe out there, and happy trading.

Sources:

Cboe to buy Virtu’s MATCHNow dark pool to expand into Canada
John McCrank – Reuters
https://reut.rs/2ZhCODB

Cboe Global Markets to Present at Deutsche Bank  Global Financial Services Virtual Conference  Wednesday, May 27
Cboe (press release)
https://bit.ly/2zTC4Kv

Cboe’s Tilly Outlines Exchange Growth Amid Market Disruption
Suzanne Cosgrove – JLN
https://bit.ly/2Tyy6Om

Maureen Obermeier: Open Outcry Traders History Project
John Lothian – JLN
https://bit.ly/2ZpUq0j

Chess Obermeier – Marketswiki Education Open Outcry Traders History Project
John Lothian – JLN
https://bit.ly/36n6AZ2

Miami International Holdings Welcomes Seasoned Industry Finance  Executive Lance Emmons
MiaxOptions.com
https://bit.ly/2To5ZBn

Lance Emmons
LinkedIn
https://bit.ly/2WUnhbx

Bitcoin’s halving breathes life into CME’s options product with new accounts rapidly growing
Frank Chaparro – The Block
https://bit.ly/3bNZ6Qg

Halving
CryptoMarketsWiki
https://bit.ly/2LmbxYt

John Lothian Newsletter

Today’s Newsletter

Why Free Trading Will Never Be Free

Why Free Trading Will Never Be Free

First Read $53,406/$300,000 (17.8%) ++++ Hits & Takes John Lothian & JLN Staff A gentle reminder. The NFA and NIBA announced a joint webinar about navigating regulatory requirements in a hybrid environment. The webinar is scheduled the day of my 31st wedding...

We visit more than 100 websites daily for financial news (Would YOU do that?)

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.

CME Buying Cboe? Options News, John’s Take and Term of the Week in The Spread  – August 20, 2021

CME Buying Cboe? Options News, John’s Take and Term of the Week in The Spread – August 20, 2021

— Will CME Group finally buy Cboe Global Markets?; Options volume outpaces exchange-traded derivatives action; Will the Fed taper sooner or later?; Volatility comes back as August options expire;
— John Lothian talks about Cboe sharks, MIAX SPIKES and remembers Philip McBride Johnson;
— Tastytrade’s Jermal Chandler explains why you need to keep a close watch on gamma in the “Term of the Week.”

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