DIRS.INFO The most relevant business & tech news

☆ Ackman's Pershing Square reaps $2.7 bln from rate trade but down 9% in 2022 -letter
▼ + stars: | 2023-02-10 | by ( Nell Mackenzie | ) www.reuters.com time to read: +2 min

U.S. stock indexes had a dismal 2022 with the S&P 500 slumping almost 20%, as the Federal Reserve battled soaring inflation with aggressive interest rate hikes that roiled markets. The assets minus the liabilities in Ackman's fund trade at a discount to its share price. "This possibility is also something that we do not feel is currently reflected in PSH's share price," it said. The interest rate hedges were initiated in late 2020 and early 2021. In 2022 the fund entered new positions in long-term interest rates, currencies and energy it said.

☆ This income ETF with an 11% yield is attracting tons of retail investors
▼ + stars: | 2023-02-09 | by ( Jesse Pound | ) www.cnbc.com time to read: +2 min

A Feb. 8 note from JPMorgan's quantitative and derivatives strategy team showed funds the with the largest net orders from retail traders last week, and the JPMorgan Equity Premium Income ETF (JEPI) was the sixth ETF on the list. The fund trailed only behind broad index funds like the Invesco QQQ Trust and risk-on offerings like the Ark Innovation ETF . JEPI had a 30-day SEC yield of more than 11%, as of the end of January, according to the fund's website, and its 12-month dividend yield at the end of 2022 was also above 11%. But investors should probably not count on that 11% yield staying around that level for years to come. A commentary on the fund's website suggests that the management team was cautious heading into this year.

☆ Intesa Sanpaolo says most operations restored after ION ransomware attack
▼ + stars: | 2023-02-09 | by ( ) www.reuters.com time to read: +1 min

LONDON, Feb 9 (Reuters) - Intesa Sanpaolo (ISP.MI) said on Thursday that most of its affected cleard derivatives operations were back up and running, after a ransomware attack at financial data company ION impacted operations at the Italian bank. ION Markets UK's cleared derivatives section was hit with a ransomware attack on Jan. 31. The attack rippled across derivatives markets, gumming up trading and clearing in exchange-traded derivatives at some of the biggest banks and financial institutions in the world, including Intesa Sanpaolo. Intesa said the situation was improving on Thursday, as ION scrambled to get its clients back up and running. "We promptly adopted measures to avoid fully suspending activities related to the exchange-traded derivatives segment," a spokesman at the bank told Reuters.

☆ Buffer ETFs were big winners in 2022. Here's how they work when markets rally
▼ + stars: | 2023-02-09 | by ( Jesse Pound | ) www.cnbc.com time to read: +4 min

Defined outcome and buffer ETFs proved their worth in 2022's bear market, but a murky market outlook for 2022 could make using the funds a bit more complicated for investors. Buffer ETFs — offered by several firms, including First Trust, Innovator, and Allianz — were a winning strategy for investors in 2022. And they've done exactly what we said they were going to do," said Trevor Terrell, head of distribution at Innovator ETFs. And if the rally continues past the cap, the funds could be in for a terrible year. The success of the buffer funds last year could lead to different types of defined outcome strategies coming to market soon.

☆ Euronext has no plans to copy rivals with cloud computing deal
▼ + stars: | 2023-02-09 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, Feb 9 (Reuters) - Euronext will not mimic rivals by shifting critical services to outside cloud computers given regulatory concerns, the pan-European exchange's chief executive Stephane Boujnah said. London Stock Exchange Group, CME and Nasdaq have all announced partnerships with cloud computing giants like Alphabet, Amazon and Microsoft, with Deutsche Boerse joining them on Thursday in a "strategic partnership" with Google. Euronext only uses a cloud provider for storing historical data, he said. "We analyse very carefully the dependency on certain providers," Boujnah said as Euronext reported full year earnings. Euronext said it has increased its 2024 annual pre-tax savings related to integrating Borsa Italiana by 15 million euros to 115 million, with around 70 million of this achieved by the end of 2023 as implementation costs remain unchanged.

☆ Fact Check-Antineoplastons not a proven ‘cancer cure’ and not an approved treatment
▼ + stars: | 2023-02-08 | by ( Reuters Fact Check | ) www.reuters.com time to read: +6 min

Online claims that the drugs are a cancer “cure” and that any of them has been FDA-approved are misleading, a cancer expert and an FDA official told Reuters. A video viewed more than 135,000 times on Facebook begins with: “THIS CURE FOR CANCER WAS DISCOVERED 42 YEARS AGO…” (here). A search of the database also shows no reported Phase 3 or randomized controlled studies on any antineoplastons as a cancer treatment. To approve a drug, FDA requires phase 3 studies to demonstrate “whether or not a product offers a treatment benefit to a specific population” (here). Cancer Research UK and the Memorial Sloan Kettering Cancer Center also caution about the lack of evidence for antineoplastons in treating cancer (here), (here).

☆ Buy these 26 cash-rich, high-momentum stocks instead of piling back into more speculative meme stocks, according to Wall Street firm Evercore
▼ + stars: | 2023-02-08 | by ( Marley Jay | ) www.businessinsider.com time to read: +3 min

Somehow meme stocks have returned. That was definitely the case last month and in early February, when investors snapped up tech and growth stocks after dumping them throughout 2022. So, of course, meme stocks are back too. But the latest rally in growth, tech, and meme stocks isn't just about buying beaten-up equities for cheap. And just like last time, the investment cases in the loosely-defined meme stock field range from "very speculative" to "lolwut."

☆ Istanbul bourse suspends trading after main index drops 7%
▼ + stars: | 2023-02-08 | by ( ) www.reuters.com time to read: +1 min

Feb 8 (Reuters) - Turkey's Borsa Istanbul suspended trading on its equity and derivatives markets after two market-wide circuit breakers failed to stop a slide in the main index, which fell 7% within the first hour of trading. "Trading in Equity Market and Single Stock & Index Futures and Options Contracts in the Derivatives Market has been suspended," it said in a statement. The stock market operator did not say when trade would resume. The first market-wide circuit breaker was issued within minutes of opening on Wednesday after the benchmark index (.XU100) dropped 5%, continuing losses after a devastating earthquake in the south of the country on Monday. The benchmark BIST-100 index opened down 0.52% and was suspended at 7.09% down, while the banking sub-index (.XBANK) was down 6.03% as trading was suspended.

☆ Near-term options market felt like YOLO, meme stock craze, says RBC's Silverman
▼ + stars: | 2023-02-08 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailNear-term options market felt like YOLO, meme stock craze, says RBC's SilvermanAmy Wu Silverman, RBC Capital Markets head of derivatives strategy, joins 'Squawk Box' to discuss Silverman's views on the trajectory of the economy, what this price action historically means and more.

Global markets revenue jumped by about 24% in October-December, the euro zone's biggest bank said on Tuesday, fuelled by a 45% leap in revenue from trading in commodity derivatives, rates, foreign exchange and emerging markets. BNP's 45% sales growth in FICC trading (fixed income, commodities, currencies) compared with 25% growth at peers, analysts at Barclays said. Shares in BNP Paribas (BNPP.PA) were up as much as 4% by 1432 GMT on Tuesday, outperforming the euro zone bank index (.SX7E) and valuing the group at more than 78 billion euros ($83 billion). "These are upward revisions that are quite significant and not so frequent," Bonnafe told reporters in a call. BNP Paribas' net income fell by 6.7% to 2.15 billion euros.

RAISED TARGETSBNP's solvency ratio has notably benefited from the $16.3 billion sale of the group's U.S. retail business Bank of the West. The transaction, closed on Feb. 1, will fund the bulk of the share buyback, that will be carried out in two tranches. Recent central bank rate hikes are set to bolster earnings from loans, especially if the spectre of a recession on the continent recedes. "We are setting ambitious financial targets and pursuing our technological advances," Chief Executive Jean-Laurent Bonnafé said. ($1 = 0.9326 euros)Writing by Mathieu Rosemain; Editing by Ingrid Melander, Kirsten DonovanOur Standards: The Thomson Reuters Trust Principles.

It's looking that way, if crypto options traders are anything to go by. The volume of bitcoin options traded on Deribit, one of the leading exchanges for crypto-focused derivatives products, jumped 82% in January versus December, according to crypto market maker OrBit Markets. Ether options swelled 38%. Calls commanded 71.1% of total bitcoin futures open interest, and 77.5% for ether, according to Deribit data. Yet the surge in volumes also indicates investors are in two minds about the direction of crypto markets, preferring low-risk, low-reward options to actually buying bitcoin or ether.

☆ Armada Hoffler Plans Private Bond Sales After Securing First Credit Rating
▼ + stars: | 2023-02-07 | by ( Mark Maurer | ) www.wsj.com time to read: +4 min

Real-estate investment trust Armada Hoffler Properties Inc. plans to raise financing through a series of private placements after securing its first credit rating, a move to wean itself off variable-rate debt as interest rates continue to climb. Armada Hoffler, which invests in office, retail and multifamily properties, on Tuesday said it obtained a BBB rating from ratings firm DBRS Morningstar. Armada Hoffler will likely always have some variable debt, which it needs to take out construction loans, he said. Armada Hoffler is developing a new headquarters for asset manager T. Rowe Price Group Inc. in Baltimore, in partnership with real-estate developer Beatty Development Group LLP. In addition to acquiring properties, Armada Hoffler has development, construction and asset-management business lines.

☆ ION starts to bring clients back online after ransomware attack - source
▼ + stars: | 2023-02-07 | by ( ) www.reuters.com time to read: +1 min

LONDON, Feb 7 (Reuters) - ION, the financial trading services group hit by a ransomware attack last week, started to bring clients back on to its cleared derivatives platform overnight, a person familiar with the matter told Reuters on Tuesday. Among the many ION clients whose operations were likely to have been affected by the attack and ensuing disruption were ABN Amro Clearing (ABNd.AS) and Intesa Sanpaolo (ISP.MI), Italy's biggest bank, according to messages to clients from both banks that were seen by Reuters last week. The hackers who claimed responsibility for the breach at ION said last week a ransom had been paid, declining to say how much it was, or offer any evidence that the money had been handed over. ION declined to comment on whether the ransom had been paid. Reporting by Harry Robertson; Editing by Amanda CooperOur Standards: The Thomson Reuters Trust Principles.

A leveraged ETF acts as a multiplier for the performance of the fund's underlying index. Morrison said she believes that both retail and institutional investors use Direxion's leveraged funds, though the majority of the users are probably retail. The leveraged funds are viewed with skepticism by some regulators and financial advisors. The leveraged funds are based on single-day derivatives, and holding them for a longer period time means could result in the performance diverging from the label. "If you don't trade them daily, you need to make a decision daily," Morrison said.

☆ Powell's speech triggered record options bets, topping even the meme stock frenzy
▼ + stars: | 2023-02-07 | by ( Patti Domm | In | ) www.cnbc.com time to read: +8 min

he asked in a note, adding that the previous record amount of call buying activity was in January 2021 just as the meme stock frenzy peaked. Those options were big market bets, like in the SPDR S & P 500 ETF and Invesco QQQ Trust, which represents the Nasdaq 100. SPY 5D line spy Much of the volume was in zero-day to expiration options, which expire on the same day. "The reality is if you bought the stock market in January 2021 and held onto it for any time period, you would be happy." Stock Chart Icon Stock chart icon spyMuch of the volume was in zero-day to expiration options, which expire on the same day.

☆ U.K. Regulators Are Urged to Address Pension Risks After Last Year’s Crisis
▼ + stars: | 2023-02-06 | by ( Jennifer Williams-Alvarez | ) www.wsj.com time to read: +5 min

It also prompted regulators and policy makers last year to start calling for action to address the risks related to LDI strategies. As the crisis unfolded, U.K. pension funds began rushing to raise cash to satisfy collateral calls triggered by the moves on the government bonds. The committee, which in part scrutinizes the work of government agencies, said regulators failed to sufficiently focus on the risks associated with LDI strategies. This meant that while interest rates were falling, pension funds benefited. There should additionally be stricter limits and reporting on the amount of leverage allowed in LDI funds, the committee chair said.

It is rare for investors to take short positions in securities of Indian companies. Securities rules in India also make it hard to quietly build short positions. Institutional investors are obliged to disclose their short positions upfront and there are other restrictions and registration requirements on foreign investors. In Adani, for example, Hindenburg held the short positions through U.S.-traded bonds and non-Indian-traded derivatives. China's strict investment rules make it all but impossible to take short positions in domestic-listed Chinese stocks from overseas.

☆ Evercore ISI says look for these value names with momentum to outperform as inflation falls
▼ + stars: | 2023-02-06 | by ( Patti Domm | In | ) www.cnbc.com time to read: +3 min

He screened the Russell 1000 for "valmentum" stocks that he expects will outperform and have characteristics of both growth and value. Stocks on the list have a high level of short interest, as well as good growth momentum and strong free cash flow yield, which is a value trait. It's a stock picker's market," said Emanuel, who heads Evercore ISI equity, derivatives and quantitative strategy. Airbnb has an estimated free cash flow yield of 5% and expected earnings growth this year of more than 9%. Booking's free cash flow is expected to be 5.4% this year, and its earnings are expected to grow 26.4%.

☆ Hackers who breached ION say ransom paid; company declines comment
▼ + stars: | 2023-02-03 | by ( Raphael Satter | ) www.reuters.com time to read: +3 min

WASHINGTON, Feb 3 (Reuters) - The hackers who claimed responsibility for the disruptive breach at financial data firm ION say a ransom has been paid, although they declined to say how much it was or offer any evidence that the money had been handed over. Britain's National Cyber Security Agency (NCSC), part of Britain's GCHQ eavesdropping intelligence agency, told Reuters it had no comment. ABN told clients on Wednesday that due to "technical disruption" from ION, some applications were unavailable and were expected to remain so for a "number of days." ION was removed from Lockbit's extortion website, where victim companies are named and shamed in a bid to force a payout. As of late Friday, Lockbit's extortion website alone counted 54 victims who were being shaken down, including a television station in California, a school in Brooklyn and a city in Michigan.

☆ VIEW U.S. job growth accelerates in January, wage gains moderate
▼ + stars: | 2023-02-03 | by ( ) www.reuters.com time to read: +3 min

NEW YORK, Feb 3 (Reuters) - U.S. job growth accelerated sharply in January amid a persistently resilient labor market, but a further moderation in wage gains should give the Federal Reserve some comfort in its fight against inflation. MARKET REACTION:STOCKS: U.S. stock index futures fell sharply after the strong jobs report BONDS: U.S. bond yields rose after the jobs data. If you can do that and keep the labor market strong that's the perfect soft landing the Fed's been looking for." "I'd say that market got ahead of itself betting that the March rate hike would be the last one. Was it seasonal factors or just the strength of the labor market."

☆ U.S. CFTC traders report delayed by ransomware attack on data firm ION
▼ + stars: | 2023-02-03 | by ( ) www.reuters.com time to read: +1 min

ION Group, the financial data firm's parent company, said in a statement on its website the attack began on Tuesday. read more"The ongoing issue is impacting some clearing members’ ability to provide the CFTC with timely and accurate data," the CFTC said in a statement. It said the Commitments of Traders report that is produced by CFTC staff will be delayed until all trades can be reported. "A report will be published upon receipt and validation of data from those firms," the CFTC said. CFTC reports provide a snapshot of investor positioning on various assets.

☆ Hackers say ransom paid in case of derivatives data firm ION, company declines comment
▼ + stars: | 2023-02-03 | by ( ) www.reuters.com time to read: 1 min

WASHINGTON, Feb 3 (Reuters) - The hackers who claimed responsibility for the disruptive breach at financial data firm ION say a ransom has been paid, although they declined to say how much it was. ION Group declined to comment on the claim. It was made to Reuters via Lockbit's online chat account on Friday. ION was earlier Friday removed from Lockbit's extortion website, typically seen as a sign that companies have paid a ransom. Reporting by Raphael Satter Editing by Chris ReeseOur Standards: The Thomson Reuters Trust Principles.

☆ Trader Is Charged in Alleged $110 Million Crypto Manipulation Scheme
▼ + stars: | 2023-02-02 | by ( Mengqi Sun | ) www.wsj.com time to read: +3 min

He faces charges of commodities fraud, commodities market manipulation and wire fraud in connection with what prosecutors said was manipulation of Mango Markets. Mr. Eisenberg remained in police custody on Thursday and will be arraigned Feb. 14, when he would be asked to enter a plea. PREVIEWThe Securities and Exchange Commission and the Commodity Futures Trading Commission filed parallel civil charges against Mr. Eisenberg last month. The CFTC, which regulates derivatives markets, said the enforcement action against Mr. Eisenberg was the first of its kind against an alleged manipulation scheme involving a decentralized exchange. He allegedly artificially pumped up the price of MNGO on three different digital asset exchanges that Mango Markets used to determine the value of the derivative contracts.

☆ Asset managers, banks call on EU to cost plans to grab euro clearing from London
▼ + stars: | 2023-02-02 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, Feb 2 (Reuters) - Asset managers, hedge funds and banks on Thursday called on the European Union to properly cost its plans to force market participants to shift derivatives clearing business from London to mandatory accounts in the bloc. London Stock Exchange Group's LCH and ICE in London have long dominated parts of the euro derivatives market, but the EU wants direct say over this activity measured in trillions of euros to ensure financial stability after Britain's departure from the EU. The cross-industry call in a joint statement said the proposals to bolster euro denominated derivatives clearing in the EU would damage the bloc's capital market. Derivatives industry bodies ISDA and FIA, hedge fund and alternative investments association AIMA, and EFAMA, which represents the EU's asset management industry, said the plans would be costly to implement. A strategy based on organic growth and market-driven solutions would best support the competitiveness of EU clearing houses in a global clearing marketplace, they added.

Search resuls for: "Derivatives"

25 mentions found