Observations & Insight
Ram Vittal: John Lothian News Zoom Interview
In 2020, Ram Vittal was hired by Marex to be the CEO of the London-based firm’s North American operations. John Lothian interviewed Vittal for John Lothian News about his role at Marex. Vittal discusses Marex’s retail and institutional strategies and where they fit in the institutional sector. He talks about whether there is a new commodity super cycle and the firm’s ESG strategy. He also outlines the global firm’s active growth strategy, as they leverage the purchase of Chicago-based futures commission merchant Rosenthal Collins Group and exchange-traded derivatives execution broker XFA.
Treasury Yields Leap Past Key Level to 1.64%, Highest in a Year
Stephen Spratt and Greg Ritchie – Bloomberg
Treasuries tumbled anew Friday, sending the benchmark 10-year yield beyond the closely watched 1.6% mark to its highest level in more than a year. Expectations for inflation over the next decade lurched to a seven-year high.
Yields on the U.S. benchmark rose as much as 10 basis points to reach 1.637% in U.S. morning trading, a level unseen since February 2020. Rates leaped across notes and bonds, with the biggest moves in 10- and 20-year securities, steepening the so-called yield curve. The 10-year rate has failed to close above 1.60% since early 2020, though has surpassed that level in volatile intraday trading several times in recent weeks.
Tech Shares Push S&P 500 to Record
Joe Wallace and Caitlin McCabe – WSJ
A rebound in shares of technology companies propelled the S&P 500 to a record close Thursday, as investors snatched up shares of growth companies that have lagged behind in recent weeks as bond yields soared.
The broad stock-market index added 40.53 points, or 1%, to end at 3939.34, a new all-time-high, while the Nasdaq Composite surged 329.84 points, or 2.5%, to 13398.67. Both major U.S. indexes were propelled by a rally among megacap technology companies such as Netflix and Facebook.
Opinion: The stock market is behaving in mysterious ways — is it bullish, bearish or something else?
Lawrence G. McMillan – MarketWatch
The stock market is doing something unusual, especially in these volatile times: It’s being led by the “old” and “stodgy” stocks of the Dow Jones Industrial Average.
The Dow has hit record highs for three days, up about 1,400 points in the past four trading days to over 32,000. No other major index has followed along, although the S&P 500 and the Russell 2000 are not far away from new all-time highs of their own. The Nasdaq is lagging.
So, is this bullish, bearish or indifferent? It probably depends on the situation, but there is an old saying that when the generals are leading the advance, it’s not a good sign for the stock market.
Exchanges and Clearing
FX derivatives: Migration of FX derivatives to the standard T7 trading system
To simplify access and to lower the entry barrier to its FX products, Eurex has decided to transfer its FX derivatives from the T7/FX trading system to its standard T7 trading system.
SGX welcomes Aztech Global Ltd. to Mainboard
Singapore Exchange (SGX) today welcomed Aztech Global Ltd. to its Mainboard under the stock code “8AZ”. With an established reputation and track record of over three decades, Aztech Global Ltd. is a key technology enabler with a focus on providing one-stop design and manufacturing services. Its product portfolio caters to the fast-growing Internet of things (IoT), data-communications and LED lighting industries. With a globally diversified customer base consisting of blue-chip companies, technology startups and networking product companies, it has over 290 customers worldwide and its products are sold in over 40 countries through multiple channels. Michael Mun, Executive Chairman and Chief Executive Officer, Aztech Global Ltd., said, “This IPO marks a new chapter in Aztech’s growth journey. Our listing on the SGX Mainboard will provide us with the resources to grow and capture greater market share, and in turn deliver value to our shareholders.
Regulation & Enforcement
Companies Still Working on Libor Changeover
Julia-Ambra Verlaine, Mark Maurer and Anna Hirtenstein – WSJ
Regulators are pressuring Wall Street to do away with the London interbank offered rate by year-end. Companies are still making the switch.
Chief financial officers at major U.S. companies such as Motorola Solutions Inc. and Ralph Lauren Corp. said they are working on issues including choosing between alternatives to the troubled borrowing benchmark, used for decades to help set rates on corporate debt, and discussing the timing and financial implications.
New Look. Same Commitment to Options Education.
OCC has launched a refreshed design of The Options Industry Council (OIC) website to provide an enhanced learning experience for its users. For more than two decades, OCC, the world’s largest equity derivatives clearing organization, has supported OIC in fulfilling its mission of providing education about the benefits and risks of listed options. “Throughout the years, OCC has been committed to providing options education to market participants and the investing public through the services of OIC,” says Julie Bauer, Chief External Relations Officer, OCC. “This website alignment effort helps reinforce the important connection between these entities.”
Registration is open! – FIA Boca 2021
A New Virtual Experience
The Options Industry Conference is Going Virtual in 2021. Join OCC and the options exchanges for the 39th annual Options Industry Conference, April 28-29, 2021. While the conference will be held virtually for the first time in history, the focus will continue to be the key topics facing the options industry today, from the regulatory shifts in the U.S. and Europe to the technological developments that are driving monumental change in markets around the globe.
Expanding carbon markets show big potential in 2021
Jeff Reeves – FIA.org
Carbon markets operate under a few different names, including informal labels like “cap-and-trade” systems or the more bureaucratic term “emissions trading scheme.” But fundamentally, they do one thing: provide incentives to reduce pollution and fight global warming through both regulated and voluntary carbon markets. There is rising global support for these market-based initiatives as part of the transition to a more sustainable global economy. The launch of China’s first national carbon trading market in February marks an important new development in these markets, and President Biden is racing to roll out a comprehensive emissions reduction strategy in the US. As these regions begin these efforts, Europe’s mature Emissions Trading System continues to thrive after seeing a record 8 billion emission allowances traded in 2020. The UK is also in the process of setting up its own emissions trading scheme after having left the EU regime as part of Brexit.
(Podcast) TWIFO 240: What’s Hot In Futures Options?
This Week In Futures Options – Options Insider Radio Network
Host: Mark Longo, the Options Insider Media Group
Co-Host: Sean Smith, FTSE Russell
On today’s episode, Mark and Sean discuss: the movers and shakers this week in futures options, top volatility movers equities, Russell 2000, small caps rates, the CME Fed WatchTool, soybeans, energy, oil, crypto/bitcoin, and much more.