US: E*Trade to acquire OptionsHouse

Apr 5, 2024

Lead Stories

US: E*Trade to acquire OptionsHouse
E*TRADE Financial Corporation has announced that it has entered into a definitive agreement to acquire Aperture New Holdings, Inc., the parent company of OptionsHouse, in a $725 million cash deal. The transaction aims to boost E*TRADE’s derivatives capabilities and expand its customer profile with the addition of OptionsHouse’s highly active, derivative-centric traders.
Paul Idzik, Chief Executive Officer of E*TRADE Financial said, “This is the first acquisition E*TRADE has made in a great while, underscoring our disciplined approach, and commitment to deliver on our growth plans. We believe options are an important component of an investor’s arsenal, and this deal will intensify our derivatives firepower.”

Wall Street ‘fear gauge’ on track for highest close of 2024
Joseph Adinolfi – MarketWatch
Wall Street’s “fear gauge” is on track to close at its highest level of 2024 after stocks moved violently lower Thursday afternoon.
The Cboe Volatility Index, otherwise known as the Vix, was up more than 12% in recent trade, at 16.57. If it ends the day at or around this level, that would mark its highest close since Nov. 1, according to Dow Jones Market Data.

Zero-Fee Trading Comes With a $100 Charge for Some ETFs; Fidelity’s new fee applies to funds from nine firms.
Katie Greifeld – Bloomberg
That’ll Be $100
Since 2019 or so, commission-free online trading has been the law of the land for US equities, spurring the meme-stock phenomenon in the pandemic era and the ongoing boom in options.
Come June 3rd, and zero-cost trading will still reign — but as Emily Graffeo and I reported last week, that’s when Fidelity Investments will impose a new $100 servicing charge on buy orders for ETFs issued by nine firms, according to a document seen by Bloomberg News.

Buffered ETFs make gains in retirement portfolios; Funds that limit losses while capping upside pose challenge to annuities and structured products
Will Schmitt – Financial Times
Retirement-focused investors have poured more than $20bn into US exchange traded funds that cap gains but limit losses over the past two years, posing a competitive challenge to established offerings from insurers.
Defined outcome or “buffered” ETFs use derivatives to limit the impact of bear and bull market extremes. Since debuting in 2018, they have become increasingly popular with investors who have weathered pandemic-related market turbulence in 2020 and a down year for stocks and bonds in 2022.

Hedge funds rally in Q1, powered by gains in equities
Carolina Mandl – Reuters
Hedge funds capped the first quarter with gains across different strategies, as a rally in stocks, some commodities and the dollar helped the industry weather a less shiny period for bonds, investors said.
Fundamental equities long/short hedge funds were up 6.28% in the first quarter, while systematic long/short funds posted gains of 11%, according to a Goldman Sachs’ prime brokerage report that tracks hedge funds globally.

Crypto Trading Volume Reached All-Time High During March Rally; Spot trading volume doubled to $2.94 trillion in March: CCData; Binance saw its largest yearly gain in spot, researcher says
María Paula Mijares Torres – Bloomberg
The combined volume of crypto spot and derivatives trading on centralized exchanges almost doubled to an all-time high of $9.1 trillion in March while Bitcoin reached a record, according to a CCData. Spot trading outpaced the gains seen in derivatives, with volume rising 108% to $2.94 trillion, the highest monthly figure since May 2021, CCData’s March Exchange review report said. Binance, the world’s largest crypto exchange, saw trading volume reach the highest since May 2021, with spot jumping 121% to $1.12 trillion and derivatives increasing 89.7% to $2.91 trillion.


MIAX Sapphire Postpones Launch
Anna Lyudvig – Traders Magazine
The launch date for the electronic market of MIAX Sapphire Exchange has been postponed due to delays in the approval process by the SEC, according to Andy Nybo, Senior Vice President, Chief Communications Officer at MIAX Exchange Group.
The new launch date is currently scheduled for August 12, 2024, pending SEC approval.
MIAX Sapphire will operate both an electronic exchange and physical trading floor.

Australian Asset Manager Monochrome Applies With Cboe Australia for a Spot Bitcoin ETF, Eyes Decision by Mid-Year
Amitoj Singh – CoinDesk
Australia-based Monochrome Asset Management has applied for a spot bitcoin {{BTC}} exchange traded fund (ETF) with the global listing exchange, Cboe Australia, the firm announced on Friday. If approved, the Monochrome Bitcoin ETF could be the first spot bitcoin ETF in Australia which allows direct holding of bitcoin. Australia already has two exchange-traded products providing exposure to spot crypto assets on Cboe Australia but they do not hold bitcoin directly.

Miami International Holdings Reports Trading Results for March 2024; MIAX Pearl Equities YTD Volumes and Market Share at Record Levels
Miami International Holdings, Inc. (MIH), a technology-driven leader in building and operating regulated financial markets across multiple asset classes and geographies, today reported March 2024 trading results for its U.S. exchange subsidiaries – MIAX , MIAX Pearl and MIAX Emerald (together, the MIAX Exchange Group), and Minneapolis Grain Exchange (MGEX™).

March 2024 figures at Eurex
Eurex Repo’s GC Pooling market grew by 62 percent year-on-year in March. Notional outstanding in OTC Clearing increased by 6 percent year-on-year. Overall turnover in listed derivatives at Eurex went down 21 percent in March. Eurex, Europe’s leading derivatives exchange, reports a 21 percent decrease in traded contracts for March compared to the previous year, down from 260.9 million to 205.0 million contracts. Due to the continued very low volatility, index derivatives recorded a decline of minus 37 percent to 81.4 million traded contracts whereby equity derivatives went down by 9 percent to 28.3 million contracts.

OCC’s Dallas Office Receives 2024 Best Place for Working Parents Designation
OCC is proud to share that, for the fourth consecutive year, our Dallas office has earned the Best Place for Working Parents business designation in recognition of our family-friendly policies and practices. Fostering a culture of inclusion, belonging and trust is essential for supporting working parents and all colleagues in an organization. It is also a core part of OCC’s #WeAreOCC value and critical for attracting, retaining, and developing a diverse range of talent.

Regulation & Enforcement

Cboe asks SEC for green light to list multi-share class funds; Several large US mutual fund managers have filed to add Vanguard-style exchange traded fund sleeves
Will Schmitt – Financial Times
Cboe Global Markets has asked the Securities and Exchange Commission to allow companies to list exchange traded fund shares of their existing US mutual funds, a rule change sought by several large asset managers that could further accelerate the growth of the ETF market. Cboe’s filing on Thursday came nearly a year after the expiration of Vanguard’s patent on multi-share class funds, which was in effect for more than 20 years.


April Puts
Cboe (Video)
In #Vol411, Dan Deming @Djd551 covers the market’s reversal after yesterday’s declines, the #VIX futures term structure and $VIX puts #trading today.


My Wild Ride as a DJT Day Trader; I made a few bucks off Trump but couldn’t take the volatility.
Gregg Opelka – The Wall Street Journal
Trump Media & Technology Group stock market trading information on television at the Nasdaq Marketplace in New York, March 26. PHOTO: MICHAEL M. SANTIAGO/GETTY IMAGES
Thirty-six dollars and 42 cents. That’s how much I made day-trading Trump Media & Technology Group on March 26, the day after the company behind the former president’s Truth Social platform made its debut on the Nasdaq under the ticker symbol DJT. My “windfall” won’t do much to subsidize my golden years, but my adventure was a valuable learning experience.

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