U.K. Assets Rally as Johnson Landslide Sweeps Through Market; After big rise, pound to pause around $1.35, options markets suggest

Dec 13, 2019

Lead Stories

U.K. Assets Rally as Johnson Landslide Sweeps Through Market
Sam Potter and Charlotte Ryan – Bloomberg
For a while on Friday the only thing more decisive than Boris Johnson’s general election victory was the market reaction that followed. The pound surged with U.K. stocks and corporate bonds rallied as investors cheered the huge Conservative Party majority in Britain’s national vote. The margin of victory fueled investor hopes the political gridlock and uncertainty surrounding the country’s departure from the European Union would finally be brought to an end.

After big rise, pound to pause around $1.35, options markets suggest
Saikat Chatterjee and Olga Cotaga – Financial Post
Having enjoyed a 2% surge on Friday following Boris Johnson’s thumping election win, sterling may have to pause for breath, with derivatives markets implying the currency will struggle to rise beyond $1.35 in the next few months. The British prime minister’s victory gives him a clear mandate to take Britain out of the European Union by the Jan. 31 deadline, raising hopes the country can draw a line under three years of political chaos that has stymied investment and hobbled economic growth.

Trades Completed in the First US Regulated Bitcoin Options on Ice Futures U.S.
ICE Futures U.S.
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today announced the first block trade of BakktTM Bitcoin (USD) Monthly Options (BTM) submitted to ICE Futures U.S. “Based on our benchmark physically delivered bitcoin futures, these options contracts offer our customers a capital-efficient new tool for trading and for managing volatility, price risk and income generation,” said Trabue Bland, President of ICE Futures U.S.

Galaxy Digital and XBTO Submit First Block Trade on Bakkt BTC Options
Aziz Abdel-Qader – Finance Magnates
(ICE), the parent company of the New York Stock Exchange (NYSE), today announced the first block trade of its options on BTC monthly bitcoin futures was submitted to its US futures marketplace. The first trade was executed between Galaxy Digital Trading and XBTO.

November Manager Performance Snapshot
RCM Alternatives
We field a bunch of calls at the start of each month asking how that hedge fund, this emerging manager, and that mutual fund did last month, and thought to simplify things for you with this categorized list of different alternative investment performance for the month gone by.

EU gives one-year margin reprieve on equity options
Samuel Wilkes – Risk.net
European Union regulators have proposed giving non-cleared derivatives users a one-year exemption from posting margin on equity options, essentially keeping the bloc in alignment with US rules, but only until the end of 2020.

Exchanges and Clearing

CME Group Inc. Announces Fourth-Quarter and Year-End 2019 Earnings Release, Conference Call
PR Newswire
CME Group Inc. will announce earnings for the fourth quarter and full year of 2019 before the markets open on Wednesday, Feb. 12, 2020. Written highlights for the quarter and year will be posted on the company’s website at 6:00 a.m. Central Time, the same time it provides its earnings press release. The company will hold an investor conference call that day at 7:30 a.m. Central Time, at which time company executives will take analysts’ questions.

Attention: adjusted trading hours over the holiday season
Please be aware of the changed trading hours over the holiday season and year-end 2019: On 24 December, Eurex is closed for trading in all derivatives. On 25 December, Eurex is closed for trading and clearing (exercise, settlement and cash) in all derivatives. On 26 December, Eurex is closed for trading and clearing (exercise, settlement and cash) in all derivatives. On 31 December, Eurex is closed for trading in all derivatives / no cash payment in JPY. Please check the trading calendar for an overview of the shortened trading hours at Eurex Exchange over the holidays and on 31 December 2019.

Regulation & Enforcement

Finra arbitrators order UBS to pay more than $11 million in defamation case
Mark Schoeff Jr. – Investment News
Finra arbitrators ordered UBS Financial Services Inc. to pay more than $11 million to a former supervisor who claimed the firm defamed him in explaining his departure. A three-person Financial Industry Regulatory Authority Inc. arbitration panel awarded Mark Munizzi $3,149,656 in compensatory damages, $7,500,000 in punitive damages as well as $496,753 in attorneys’ fees and $24,381 in costs. It also required UBS to pay interest on $112,500 of the compensatory damages as severance pay.


Welcome to the 2020 Options Industry Conference and Colorful Puerto Rico!
Join OCC and Cboe for the 38th Annual Options Industry Conference, April 22-24, 2020. The gorgeous Wyndham Grand Rio Mar Golf & Beach Resort provides a lovely backdrop for focusing on 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.


Broker Comparison: Which Online Broker is Right for You?
Susan Caminiti – Nasdaq
When it comes to selecting an online broker there are a number of key factors to consider. Among them: fees, commissions, research and platforms. We’ve examined four of the most popular brokers drawn from Barron’s 2019 Best Online Brokers list—Fidelity, Interactive Brokers, E*Trade and TD Ameritrade.

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