Breaking News

Tag Archives: crude oil

Negative Gamma and Oil; CAT Concerns; Brexit Volatility JLN Options Newsletter,Newsletter,Options

Observations & Insight Natural Gas ETN Volume Tops S&P 500, Nasdaq ETFs on Blowup Fears Luke Kawa and Rachel Evans – Bloomberg DGAZ bets against natural gas as prices soar on cold forecast; Note tumbled more than 50 percent but appears to have survived Cold weather in the U.S. is sending an extra shiver down the spines of investors who hold an exchange-traded note that bets against natural gas and just had its worst-ever day. /bloom.bg/2DFML3M ****SD: Ahhh, the infamous “acceleration event.” Now where has this come up before…? It’s also perfect timing for this to happen to DGAZ, as…

Virtu/ITG – Two great tastes; Tradeweb chief stokes M&A speculation; Rate worries JLN Options Newsletter,Newsletter,Options

Observations & Insight Monday Miscellany Spencer Doar – JLN Front month VIX futures are (still) trading higher than November VIX futures, albeit not my much (as of this writing). There was no episode of “The Spread” this past week. We are working on some special Spooktacular editions about the fear gauge. Stay tuned. John was in D.C. this past week. He attended Friday’s CFTC Technology Advisory Committee (“TAC”) meeting and shared his opinion on crypto. (His comments start at ~103:30, just after Gary DeWaal.) There is yet another hurricane threatening the U.S. – Michael strengthened to a Category 1 and…

OCC taps AI for security; Option Traders Scared to Bet Against Market Meltup JLN Options Newsletter,Newsletter,Options

Observations & Insight The Spread – Bumpy Road – 10/1 JohnLothianNews.com A speed bump? For options? Say it ain’t so, Joe! Oh, it is so? Cool. For more details on the latency development at Eurex, tune in to this week’s episode of “The Spread.” Watch the video and see the stories referenced here » ****SD: Quick note/update via Eurex – the latency protection functionality discussed in the above episode will be available with the annual T7 system release but IS NOT going live in December. The exchange has built the tool and is deciding whether or not it will go…

Interview with OCC’s Donohue; Boom in VIX trading; Industry bits Newsletter,Options

Observations & Insight Bits and Pieces SD– JLN While the war of words over Cboe’s end-of-day trading proposition regards equities, we’re going to keep you updated, since the players involved are options exchange groups, too. Today’s news pertains to Cboe and Nasdaq – the two biggest options exchange groups by market share in the U.S. Plus, there are thoughts that, if implemented, the new closing process could affect volatility around the close, which is an options angle. Anyway, Nasdaq CEO Adena Friedman called the proposal “irresponsible” and “really bad for investors” and urged regulators to give it a harder look….

Advocating for a stronger U.S. options market; $60m bond trade; BofA to Become MiFID II Venue for Derivatives Newsletter,Options

Observations & Insight Bittrex Inc. takes controlling strategic stake in Seed opening new trading opportunities for Institutional Crypto Trading Seed CX Seed CX Ltd (“Seed”) today announced a strategic investment by Bittrex Inc., a US-based cryptocurrency trading platform. Seed is currently onboarding institutional participants and will launch spot and derivative crypto trading in Q1 2018. Bittrex is one of the largest crypto trading venues in the world, with over $3 billion notional traded on a daily basis and over 2 million customers. Seed operates a swap execution facility, Seed SEF, registered with the Commodity Futures Trading Commission. Edward Woodford, CEO…

Short-VIX Trade Shows Few Signs of Fading; More BTC; Sleepy Oil; Markets Numb to Risk Newsletter,Options

Observations & Insight Bitcoin stirs volatility fears as it heads for $10,000 Hannah Murphy – Financial Times The price of bitcoin soared to record highs on Monday and approached the symbolic $10,000 threshold even as some traditional marketplaces warned they were becoming “uncomfortable” with the volume and volatility of trading in the cryptocurrency. on.ft.com/2BmDb0m ****SD: Some folks must be making that “baby’s first taste of lemon” face. Just two weeks ago – when BTC was trading for less than $8k – LedgerX initiated it’s first long-term bitcoin futures option with a strike of $10,000 (sold/bought for $2,250.25). The contract expires…

HFTers Jump Into Bitcoin; Oil Volatility; Calm Sterling Newsletter,Options

Observations & Insight Why ISPs Are About To Spoil Your Thanksgiving Dinners: Food For Thought on Net Neutrality Repeal By Jeff Bergstrom – JLN Yesterday it was announced the F.C.C. plans a net neutrality repeal. This is not a particularly new story. The telecoms have been working towards this for years. But now it seems they are about to achieve their goal and that is not a good thing unless you are a major investor in telecom stocks. It is a truism that the last thing anyone should talk about over Thanksgiving dinner is politics. We all have that crazy uncle…

Interactive Brokers Group Announces Decision to Cease Options Market Making Activities; Snap options set for strong demand on market debut; Newsletter,Options

Observations & Insight CME Group CEO Terry Duffy on Business and Interest Rates Under the Trump Administration JohnLothianNews.com With a new administration in place and a more optimistic outlook from the market community, CME Group is well positioned to succeed, according to CEO Terry Duffy. Whereas global regulatory efforts have served as a headwind for the industry since the financial crisis, now the United States is benefiting from the perception that the new administration’s stance on regulation will serve as an tailwind. There is much left to be determined, certainly, but even the shift to no new regulation as opposed…

Oil volatility migrates from flat prices to spreads; Hedging is about to make a comeback on global crude oil markets; Hedging risk at peak levels through 2016 Newsletter,Options

Lead Stories Oil volatility migrates from flat prices to spreads John Kemp – Reuters “Volatility can be neither created nor destroyed, rather it transforms from one form into another,” is a pretty fair summary of how the oil market works (with apologies to physicists). The benchmark price of Brent crude has been unusually stable since the middle of December, but there has been plenty of movement in the futures strip and crack spreads. Hedge funds have amassed an unusually large net long position in crude futures and options betting on a further increase in benchmark prices, but the position has…