Observations & Insight
EU Parliament and ECB Taking a Look At Cryptocurrencies
Thom Thompson – John Lothian News
Last week, which admittedly was a slow financial markets news week, headlines in the cryptocurrency press announced that a new EU report told officials not to ban bitcoin. Blockchain News said the report “. . . blasts economists who criticize cryptocurrencies.” There was no blasting. While the report prepared by an EU policy department did provide some sound bites, it was one of five reports about central bank monetary policy toward virtual currencies that the EU Parliament had requested.
If the briefing papers do guide the discussions, there is no reason to expect shifts in today’s slowly evolving bank regulatory policy toward cryptocurrencies. The papers share a measured approach to analyzing current developments, identify several key issues and recommend prudent, non-specific measures to address them. The crypto community should be reassured that there appears to be no push to rush new policies into legislation, at least from the policy wonks.
To try to keep their policies aligned, Mario Draghi, the current president of the European Central Bank, and the European Parliament’s Economic and Monetary Affairs Committee, referred to as “ECON,” hold quarterly “Monetary Dialogues.” The July 9 regular meeting is to focus on cryptocurrencies and other virtual currencies like bitcoin, ethereum and monero.
To read the rest of this commentary, go HERE.
IEX hires former ISE executive Ilyevsky to lead market development
U.S. stock exchange operator IEX Group said on Monday it has hired Boris Ilyevsky, a former long-time executive of the options-focused International Securities Exchange (ISE), to lead market development, including a potential expansion into options.
****SD: There’s a lot to digest here. They have “no plans to enter” the options market. However, they hired Mr. Ilyevsky. Consider that IEX has struggled to draw a listing. It looked like Steve Wynn was going to list there, but then the eponymous founder had his scandal. Also, they have not garnered the amount of market share initially projected. So it makes sense that IEX would explore other avenues (whatever those may be).
‘This rally in stocks is a last hurrah!’ warns Guggenheim’s Minerd
Mark DeCambre – MarketWatch
The Dow Jones Industrial Average on Monday had its best day in about a month, but Scott Minerd of Guggenheim Partners says investors shouldn’t be lulled into a false sense of security amid intensifying clashes over global trade.
Chinese Stocks Can Be More Volatile Than Commodities
Andrew Hecht – Nadex
Which came first, the chicken or the egg? The question that has posed a dilemma for philosophers, scientists, and laypeople throughout history. The ancient folk paradox continues to address the problems surrounding origins and cause.
In the world of commodities, China is a leading producer of many raw materials. However, with the growth of wealth in the Asian nation that has the largest population on our planet, the demand for commodities dwarfs other countries and regions on the earth. When it comes to financial markets in China, there is a close relationship between raw material prices and flows and the prices of Chinese equities. Whether commodities prices drive stocks in China or vice versa could be a financial paradox that parallels the chicken and egg dilemma.
****JB – The egg came first. Doesn’t change anything, just saying…
Hedge Funds Caught in Trump’s Trade War Crossfire Feel the Pain
Nishant Kumar and Suzy Waite – Bloomberg
Volatility, political risks cause losses in merger arbitrage; Strategy faces accelerated outflows as investors shift money
In a booming year for mergers and acquisitions, hedge funds that seek to make money from corporate marriages are struggling.
Theresa May fends off immediate leadership challenge; Conservative Eurosceptics back away from launching bid to oust UK prime minister
Laura Hughes in London – FT
UK prime minister Theresa May appears to have fended off an immediate leadership challenge, with Conservative Eurosceptics backing away from launching a bid to oust her from office.
Exchanges and Clearing
CME Group and Cheniere Energy, Inc. Reach Agreement to Develop First-Ever Physically Deliverable LNG Futures Contract at Sabine Pass Terminal
CME Group, the world’s leading and most diverse derivatives marketplace, and Cheniere Energy, Inc., a pioneer in the liquefaction and export of U.S. liquefied natural gas (LNG), reached an agreement through which CME Group will develop an LNG futures contract with physical delivery to Cheniere’s Sabine Pass terminal on the U.S. Gulf Coast.
Getting started: first deals of Swiss equity derivatives on EnLight
We are happy to announce that the first deals of Swiss equity derivatives have been arranged on Eurex EnLight.
On 19 June, we extended the product range of our selective request-for-quote platform to cover equity options and equity index options on Swiss underlyings. Within the first week after the launch – that is between 19 and 25 June 2018 – we have already seen ten requests, twelve responses and a total of five deals arranged on Eurex EnLight in this segment.
NYSE president seeks Trump’s help for iconic exchange
Julia Limitone – Fox Business
New York Stock Exchange President Stacey Cunningham Opens a New Window. plans to meet with President Donald Trump to discuss the U.S. Securities and Exchange Commission’s (SEC) transaction fee pilot program, which she argues will drive up investor costs and hurt competition.
Nasdaq June 2018 Volumes, 2Q18 Estimated Revenue Capture and Listings Statistics
Nasdaq (Nasdaq:NDAQ) today reported monthly volumes for June 2018, as well as quarterly volumes, number of listings and estimated revenue capture for the quarter ending June 30, 2018 on its investor relations website.