Breaking News

LedgerX Initiates First Long-Term Bitcoin Option Price at $10,000; Low vol paradox

Observations & Insight

FUD on All Sides: In Defense of CME’s Bitcoin Plan
William Mallers – Coindesk
I’m a member of the Chicago Mercantile Exchange. I’ve also been a bitcoiner since 2013. So, when CME Group announced its intention to launch bitcoin futures in the coming weeks, I thought, “Great! Way to go, CME.”

****SD: Pretty much Mallers vs. John Lothian. Go to the comment section for a ton more fireworks. Here’s a Bloomberg piece – A Hacker Warning for Bitcoin – from today in light of the Tether heist.

Lead Stories

LedgerX Initiates First Long-Term Bitcoin Option Price at $10,000
LedgerX, a federally regulated exchange and clearinghouse, has announced the first long-term Bitcoin option pegged at a price of $10000.

****SD: Hedgie Michael Novogratz was just on Bloomberg saying BTC would be $10k by year-end. I’ll stick to making easy predictions, like who’s going to win the World Series in two years and the final outcome of Brexit.

Low volatility paradox will catch out investors and regulators
John Plender – Financial Times
The continuing lack of volatility in the markets this year has become little short of unnerving. Is it the calm before the storm? Unquestionably so, is the answer, because volatility is mean reverting. But to say something more meaningful about this extreme state of insouciance in the markets is far from easy.

****SD: I’ve said it before – the longer things stay calm the more people turn to their thesauruses. See “insouciance.” Speaking of volatility, yesterday’s big story was A Trader Called the ‘VIX Elephant’ Is About to Rock Volatility Options

Oil prices stall as record bullish position makes funds wary: Kemp
John Kemp – Reuters
Hedge funds increased their bullish position in petroleum futures and options to a new record last week, but the first signs of caution started to emerge.
Fund managers raised the number of long positions in the five major futures and options contracts covering Brent, WTI, U.S. gasoline and U.S. heating oil to a record 1.31 billion barrels on Nov. 14.

Brexit-Hit Banks to Start Moving Staff Abroad in Early 2018
Gavin Finch and Steven Arons – Bloomberg
U.K. politicians are fighting to get a deal early next year that will ease businesses’ panic about Brexit. For some industries, it’s probably too late.

Exchanges and Clearing

CME says bitcoin futures coming this year, but date not set
John McCrank – Reuters
CME Group Inc, the world’s biggest futures exchange, said on Monday it still plans to launch a futures contract for bitcoin this year, but that a notice on its website stating the contract would begin trading on Dec. 11 was posted in error.

****SD: Huh. Weird.

Plot to save London Stock Exchange chief executive Xavier Rolet risks triggering a messy exit
Julian Harris – City AM
Successful leaders can be difficult to work with. From Margaret Thatcher to Alex Ferguson, people at the top are frequently characterised as stubborn, uncompromising and aggressive, provoking inevitable feuds with anyone who questions their approach.

“It’s keeping us all busy”
Eurex Group
Not much longer and the biggest market reform in decades will fundamentally redesign Europe’s derivatives markets: on 3 January 2018, the Markets in Financial Instruments Regulation (MiFIR) and Directive II (short: MiFID II) will kick off. We spoke to Randolf Roth, member of the Eurex Executive Board, about the challenges ahead and the support Eurex offers its customers.

****SD: Also from Eurex – Fixed Income Highlights and Equity Index Highlights

SGX Welcomes Qantex Capital As Derivatives Trading Member
Singapore Exchange (SGX) today welcomed Hong Kong-based Qantex Capital Markets (Qantex Capital) to its derivatives market as a Trading Member.


FlexTrade Introduces Enhanced Cross-Oms Aggregation For MiFID II – Improves FlexTRADER EMS Ability To Aggregate Orders Across Multiple OMSs
FlexTrade, a global leader in multi-asset execution and order management systems, today announced the rollout of an enhanced version of its multi-OMS aggregation functionality, an in-built feature of the FlexTRADER EMS, which allows users to merge and net orders across multiple OMSs regardless of the underlying version or implementation.


There’s a cheap way for traders to protect against tax reform failure
Joe Ciolli – Business Insider
Strategists up and down Wall Street are bullish on stocks through the end of next year, and a big part of that stems from optimism around tax reform. But by that same token, if policy progress fails to materialize, that could spark a considerable sell off in equities.

The Stock Market Is Not Overvalued: Options Expert
The U.S. market is not overvalued and there are still enticing sectors for investors even though the major U.S. indexes have recently powered to new highs week after week.


Wall Street’s had a dismal year — the latest report card confirms it
Alex Morrell – Business Insider
A dismal year on Wall Street has been further confirmed by the latest business-by-business report card.
Investment banking revenues at the top-12 banks fell to $118.1 billion during the first three quarters of 2017, according to data from industry consultant Coalition.
Banks saw a strong first quarter in 2017, but it’s been downhill since.

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Graduate of University of Minnesota School of Journalism and Mass Communication