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.
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.
Cboe to buy Virtu’s MATCHNow dark pool to expand into Canada
John McCrank – Reuters
Cboe Global Markets to Present at Deutsche Bank Global Financial Services Virtual Conference Wednesday, May 27
Cboe (press release)
Cboe’s Tilly Outlines Exchange Growth Amid Market Disruption
Suzanne Cosgrove – JLN
Maureen Obermeier: Open Outcry Traders History Project
John Lothian – JLN
Chess Obermeier – Marketswiki Education Open Outcry Traders History Project
John Lothian – JLN
Miami International Holdings Welcomes Seasoned Industry Finance Executive Lance Emmons
Bitcoin’s halving breathes life into CME’s options product with new accounts rapidly growing
Frank Chaparro – The Block