Global stock bulls still running, but a bit more tired: Reuters poll
Rahul Karunakar – Reuters
Global stock markets will rise further in 2018, even as the era of low inflation, bond yields and volatility has come to an end and the rocket fuel behind a bull run that began in 2009 is running dry, a Reuters polls of strategists showed.
Hedge funds gain another avenue to bet against bitcoin
Seema Mody – CNBC
As institutional demand grows for cryptocurrencies, Genesis Global Trading is launching a digital currency lending business called Genesis Capital to enable investors to borrow bitcoin, ether and others for a fixed amount of time.
In a press release, the company said, “Firms trading bitcoin futures or options find it advantageous to have bitcoin on borrow because they can short-sell those borrowed bitcoin to delta-hedge their long derivative positions.”
Firm swoops in to ensure volatility is a trade for another day
Bob Pisani – CNBC
The company behind one of the last VIX volatility products is making moves to reduce the volatility of the funds.
ProShare Capital Management late Monday night announced it was reducing leverage on the ProShares Short VIX Short-Term Futures ETF (SVXY) and the ProShares Ultra VIX Short-Term Futures ETF (UVXY), effective at the close of trading Tuesday.
Another Reason For The Low VIX
Marc Chandler – Seeking Alpha
Since the Great Financial Crisis and the unprecedented expansion of the balance sheet of many central banks, many investors have thought that officials have been responsible for various distortions that they detect in the capital markets. The compressed nature of equity market volatility is one of those distortions.
Cramer’s charts reveal that euphoria caused the stock market meltdown
Elizabeth Gurdus – CNBC
While CNBC’s Jim Cramer is content to blame the market’s recent sell-off on high-risk products that traders used to bet against volatility, he knows there could be more to the story.
That’s why the “Mad Money” host recruited technician Carley Garner, the co-founder of DeCarley Trading and the author of Higher Probability Commodity Trading, to get to the bottom of the drastic correction.
Morgan Stanley: Here’s how the short-volatility trade can recover
Joe Ciolli – Business Insider
Don’t call it a comeback.
Less than a month after the controversial short-volatility trade imploded, wiping out a pair of popular exchange-traded products (ETPs), Wall Street is already plotting its return to glory.
Morgan Stanley in particular has some ideas about how shorting of the Cboe Volatility Index (VIX) — also known as the stock market fear gauge — can make a recovery. And right now, the firm says investors simply need time to let conditions normalize.
Horizons revamps ETF amid worries about volatility-based funds
Clare O’Hara and Christina Pellegrini – The Globe and Mail
Concerns are growing around leveraged volatility-investment products as one of Canada’s largest exchange-traded-fund providers announced a halt in trading for a second time this year.
Midday Tuesday, Horizons ETFs Management (Canada) Inc. announced a temporary suspension of new subscriptions for units of BetaPro S&P 500 VIX Short-Term Futures Daily Inverse ETF (HVI), saying it plans to rejig the fund’s investment objective.
With volatility back, time for more quality
Russ Koesterich – Nasdaq
Markets have calmed down in recent days. Still, while U.S. stocks have managed to recoup roughly half of their recent losses , there has been a palpable shift in the environment. Markets no longer end each day at all-time highs and the S&P 500 Index’s annualized return no longer approaches triple digits. Another manifestation of this regime shift is volatility. The VIX Index has retreated from its unprecedented spike, but at nearly 20 it is still double the January low. In other words, investors expect twice as much near-term volatility as they did one month ago.
Exchanges and Clearing
Cboe Global Markets Announces Additional $150 Million in Share Repurchase Authorization
Cboe Global Markets, Inc. (Cboe: CBOE | Nasdaq: CBOE), one of the world’s largest exchange holding companies, announced today that its Board of Directors has authorized the company to repurchase up to an additional $150 million of its outstanding common stock, effective immediately.
NSE Working With Global Exchanges, Index Providers For Orderly Transition
The National Stock Exchange of India Ltd. is working with international bourses and index providers to facilitate an orderly transition that is not disruptive to the markets and stakeholders, its chief Vikram Limaye said today.
Top NSE officials visited the U.S. and other countries this week to address the concerns of a wide range of stakeholders including market participants.
Regulation & Enforcement
China regulator says no FX derivative short positions at end-Jan, unchanged from Dec
China’s foreign exchange regulator said on Wednesday that it had no holdings of short foreign currency positions in forwards and futures versus the yuan at the end of January, unchanged from its December position.
The CFTC Allows Employees to Trade in Cryptocurrencies
Arnab Shome – Finance Magnates
The Commodity Futures Trading Commission (CFTC) has permitted its employees to invest in cryptocurrencies, reported Bloomberg. This decision came weeks after the commodity watchdog took the responsibility of overseeing the Bitcoin futures market.
Average Daily Volume during Cboe’s Global Trading Hours (GTH) Tops 90,000
Matt Moran – Cboe
Over the years we have heard great interest from many investors in the ability to use SPX and VIX products around-the-clock to help manage their portfolios. The interest has been particularly strong from investors from outside the U.S. time zones. The trading hours for some key Cboe products (SPX options, VIX options, VIX futures, and XBT futures) now include both Regular Trading Hours (from 8:30 a.m. to 3:15 p.m. CT), and Global Trading Hours (GTH) as shown in the table below the three volume charts.