This week on The Spread – the CME Group announces new options products, MSCI moves from Singapore to Hong Kong, and more.
Produced by Mike Forrester.
Welcome to The Spread, where this week we’re chock full of tech news, so let’s get into it. The CME Group announced this week that it would soon launch options for its Micro E-mini S&P 500 Futures. The E-micro S&P futures have been the most successful new product launch in the history of the CME, so why not create micro options too? They also announced they would launch E-mini Nasdaq-100 futures. The CME is looking for lightning to strike again with the launch of the E-micro options on the S&P and the E-Micro Nasdaq 100 futures. SGX’s stock took a big hit after MSCI left it for HKEX, moving the licensing for its derivatives trading platforms to the Hong Kong exchange. Like most breakups it was hard for both parties, but MSCI and the Hong Kong exchange seem happy, and hopefully in time its ex, SGX, will be able to find closure and move on. Sterling Trading is a tech firm known for their compliance, risk and trading API platforms for equity, options and futures trading – seems like they make everything but kitchen sinks. This week they announced they’re getting into digital asset trading by partnering with Voyager – a crypto asset broker – adding widgets for crypto trades on their Sterling Trader and Sterling Trader Pro platforms. The widget’s also going to have data for pricing, positions, order lists, news, a corkscrew, and a can opener. Speaking of cryptoassets, the cryptocurrency exchange Binance added new options contracts for Ethereum and XRP, the second- and third-biggest cryptocoins by market cap respectively. Like their bitcoin options contracts, they don’t work quite the same as the options contracts you know and love, but digital asset options products have been growing in popularity on platforms like the CME and Deribit. When it comes to unregulated exchanges, Binance is one of the heavy-hitters, so it makes sense that they’d want to get in on the action. Speaking of getting “in on the action,” the New York Stock Exchange reopened this week, though only a quarter of its workers actually returned. Cboe is still on track to reopen on June 8, and the CME is requiring a waiver for all employees returning to the floor, warning them that if they do so, they’re doing it at their own risk. I don’t have a joke here – things are pretty messed up right now, so if you’re a trader or market maker or anyone else working on a floor, please be careful. JLN has published a podcast version of Its Bachelier Options Model virtual panel that featured Don Wilson of DRW, Lee Betsill of CME Clearing and Jerry Hanweck of Cboe Global Markets. John Lothian moderated the event. Also, check out the Open Outcry Traders History Project video with James Gordon, a former Cboe trader who started his trading career with Timber Hill. You can find the Bachelier podcast and the James Gordon video on JohnLothianNews.com. That’s it for The Spread this week – whether you’re on the floor or working from home, stay safe and happy trading.
Chicago Derivatives Executive Pens Murder Mystery Thriller Set In Chicago’s Markets
John Lothian – JLN
CME Group to Launch Options on Micro E-mini S&P 500 and Micro E-mini Nasdaq-100 Futures
HKEX signs Agreement With MSCI To License Indexes To Launch Asia And Emerging Markets Futures And Options Contracts
SGX Facing More Competition, Payout Scrutiny After MSCI Deals
Ishika Mookerjee – Bloomberg
SGX Plunges Most in 17 Years as MSCI Signs Pact with Hong Kong
Ishika Mookerjee, Kiuyan Wong, and Abhishek Vishnoi – Bloomberg
Sterling Trading Tech Partners With Voyager To Launch A Crypto Trading Widget
Sterling Trading Tech (press release)
Binance Adds ETH and XRP Options Contracts
Extinction by Algos Threatens Chicago’s Silenced Trading Pits
Elizabeth Stanton and Alyce Andres – Bloomberg