The stock market’s fear gauge spikes 13% after Fed warns of prolonged labor-market damage; Cboe Revives Mini VIX Product Aimed at CTAs

Jun 11, 2020

Lead Stories

The stock market’s fear gauge spikes 13% after Fed warns of prolonged labor-market damage
Ben Winck – Markets Insider
Wall Street’s go-to volatility gauge leaped as much as 12.7% early Thursday in the wake of Federal Reserve chair Jerome Powell’s warning of a lengthy economic recovery.
Cboe’s VIX index breached 30 for the first time since late May, forecasting a wild trading session after weeks of relative calm. The metric measures S&P 500 volatility through options contracts, and is commonly referred to as the market’s “fear gauge.”
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****JB: MarketWatch story on the same topic: Wall Street’s ‘fear index’ surges to highest level since mid May as Dow futures fall 900 points on economy, coronavirus fears

Cboe Revives Mini VIX Product Aimed at CTAs, Retail Traders
Joanna Ossinger – Bloomberg
Cboe Global Markets Inc. is looking to cater to smaller-scale traders who have embraced options in recent months as volatility increased.
The Chicago-based firm’s Cboe Futures Exchange is planning to relaunch mini futures on the Cboe Volatility Index, or VIX, which it had offered from 2009 to 2014, according to a filing with the Commodity Futures Trading Commission dated June 9. It aims to debut the VXM product later this year, pending regulatory approval. Commodity Trading Advisors, “sophisticated” retail investors and proprietary-trading firms could be among potential users, according to the filing.
/bloom.bg/3dUBZVN

Cboe Futures Exchange plans launch of mini VIX futures
April Joyner – Reuters
The Cboe Futures Exchange submitted a regulatory filing on Tuesday to launch mini futures on the Cboe Volatility Index as it looks to expand its array of products that allow investors to guard against equity market gyrations.
/reut.rs/30y9N7y

Exchanges and Clearing

HKEX Enhances Product Offering with JD Debut
HKEX
JD Futures and Options to be introduced on 18 June; HKEX informed issuers they can list derivative warrants on JD shares when the shares debut on HKEX’s securities market; JD shares to be included in Designated Securities Eligible for Short Selling on 18 June
Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Thursday) that it will offer investors more options on JD.com, Inc. (JD, stock code: 9618) shares on the debut date (18 June 2020).
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ETF options: Change of capacity group for the products IGLN and ISLN
Eurex
Following the issuer’s announcement to change to International Central Securities Depository model of settlement (from currently CREST settlement), the Management Board of Eurex Deutschland took the following decision with effect from 11 June 2020:
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Cboe Global Markets Announces Additional $250 Million in Share Repurchase Authorization
PR Newswire (press release)
Cboe Global Markets, Inc. (Cboe: CBOE), one of the world’s largest exchange holding companies, today announced that its Board of Directors has authorized the company to repurchase up to an additional $250 million of its outstanding common stock, effective immediately.
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CME Globex Notices: June 8, 2020
CME Group
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Cboe Global Markets Announces Additional $250 Million in Share Repurchase Authorization
Cboe
Cboe Global Markets, Inc., one of the world’s largest exchange holding companies, today announced that its Board of Directors has authorized the company to repurchase up to an additional $250 million of its outstanding common stock, effective immediately.
/bit.ly/2XRng8r

Regulation & Enforcement

NYSE ARCA, INC. LETTER OF ACCEPTANCE, WAIVER, AND CONSENT Nos. 2018-07-00036; 2018-11-00038; 2019-09-00122
NYSE Arca
During the period between April 1, 2018 and July 1, 2019 (the “Relevant Period”), X-Change Financial Access, LLC violated: (i) NYSE Arca Rules 6.75-0 and 6.94-0 by improperly effecting six transactions in option series at prices that were inferior to the National Best Bid and Offer (“NBBO”) and (ii) NYSE Arca Rule 6.46-0 by failing to use due diligence to execute two options orders at the best prices available. Consent to a censure and a $12,500 fine.
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Technology

Advisory Notice: Adding Settlement Date to Option Exercise/Assignment Summary File (POS645CSV)
CME Group
In response to Firm request, CME Clearing will add Option Contract Settlement Date to the .csv version of the Option Exercise/Assignment Summary Report, POS645CSV. The column will be added to the end of the file and will be labeled: SETTLEMENT_DATE. The Production date is Monday June 22, 2020.
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