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  • Viewpoint - Not dead yet

    Since the Brexit vote in 2016, many surmised that the best days of London as a financial center were behind her. The financial engine of mainland Europe was now an outsider looking in and many predicted that Frankfurt, Paris or even New York would replace London’s role. There is no doubt that Brexit has been a net loser financially for the UK, but for a city nearly 2,000 years old, we must look to the positives in the long game. Last week I was in London visiting FIA members and I came away energized and optimistic about the current and future state of this great city.

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  • People news – April/May 2024    

    Appointments, promotions, and other people news in the derivatives industry  

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  • US lawmaker presses banking regulators on derivatives clearing issue 

    An influential member of the US House of Representatives is pressing US banking regulators to address concerns expressed by derivatives end-users about the proposed increase in bank capital requirements that will increase the cost of clearing.  

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  • Mutual funds have increased their holdings of US Treasury futures by 67% since 2020, according to Fed analysis

    Mutual funds have dramatically increased their holdings of US Treasury futures over the last three years as they have adjusted to a higher interest rate environment and used the leverage embedded in futures to boost their returns, according to research by staffers at the Federal Reserve Board of Governors.

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  • Premium turnover in Indian options hits $150 billion

    In March, the turnover in index options on NSE India was equivalent to 61% of the turnover in index options on CBOE, Nasdaq and other US options exchanges. When ETF options are included, the NSE India turnover was equivalent to 43% of the comparable contracts in the US.

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  • US options industry leaders wrestle with constraints on growth 

    Investors are flocking to so-called "zero day" options and investors are calling for longer trading hours so they can trade in the evenings and on weekends. Both trends could lead to further growth in trading volumes, but at a cost. Industry executives warn that longer trading hours will increase the operational burden on brokers, clearing firms, market makers and exchanges. The same challenge arises with adding more expirations to support the zero day trend; the industry is already dealing with a huge number of contracts and adding more will put further strain on its capacity.  

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  • CFTC advances event contract proposal in contentious meeting

    On 10 May, the US Commodity Futures Trading Commission voted 3-2 to advance a highly anticipated and contentious proposed rule regarding event contracts. The proposed rule advanced with the support of CFTC Chairman Rostin Behnam and Commissioners Kristin Johnson and Christy Goldsmith Romero. Republican Commissioners Summer Mersinger and Caroline Pham raised significant concerns about the proposal during an open meeting and opposed the proposed rule.  

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  • Exchange leaders caution options industry on zero day expansion plans

    Senior executives for two of the largest market operators in the US options industry sounded a note of caution on the boom in the trading of options with zero days to expiration, saying that brokers and exchanges should carefully consider the costs and benefits before extending this trend into single stock options.

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  • LME nickel futures - bouncing back

    In the two years after the London Metal Exchange was forced to close its nickel market and cancel $12 billion in trades, the exchange has worked hard to win back the confidence of market participants through a number of reforms. Trading volumes are rising again, but open interest has not fully recovered, and two new competitors have emerged.

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  • Derivatives industry moving to “Cloud 2.0”: Google’s Bhat 

    Industry experts discuss the structural shifts they are seeing as the derivatives industry moves to modernise its markets. 

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