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A street sign for Wall Street hangs in front of the New York Stock Exchange May 8, 2013. Some 100,000 January call options on the Cboe Volatility Index (.VIX) changed hands on Friday, with a strike price of 27. Similarly large positions in January VIX options were opened on Wednesday and Thursday. The recent large trades, however, are more likely hedges on a portfolio of stocks, rather than wagers on a massive equity selloff, options strategists said. The trades are unusually large and make up about 5% of this month's overall trading volume in VIX options, according to Trade Alert data.
Persons: Lucas Jackson, Chris Murphy, Murphy, Matthew Tym, Cantor Fitzgerald, Tym, Saqib Iqbal Ahmed, Ira Iosebashvili Organizations: New York Stock Exchange, REUTERS, Susquehanna Financial Group, Federal, Thomson Locations: U.S
REUTERS/Kim Kyung-Hoon/File Photo Acquire Licensing RightsNov 16 (Reuters) - Foreign investors were major buyers of Japanese equities last week, buoyed by robust corporate earnings and a broader global market rally amid expectations that the U.S. Federal Reserve may pause its aggressive interest rate hikes. Data from Japanese exchanges showed foreign investors purchased stocks worth a net 1.12 trillion yen ($7.40 billion)in the week ended Nov. 10, their biggest weekly net buying since the week ended June 16. Reuters GraphicsInvestments were predominantly focused in derivatives, totaling about 1.04 trillion yen, complemented by 78.3 billion yen directed into cash equities. Year-to-date, Japanese stocks have attracted net inflows of 5.96 trillion yen from foreign investors, a stark contrast to 4.07 trillion yen of net outflows in the year-ago period. Meanwhile, Japanese investors withdrew 73 billion yen from overseas stocks in the last week, becoming net sellers of foreign stocks for the first time in seven weeks.
Persons: Kim Kyung, Patturaja Murugaboopathy, Gaurav Dogra, Varun Organizations: Tokyo Stock Exchange, REUTERS, U.S . Federal, Reuters Graphics Investments, Japan's Nikkei, Treasury, Reuters, Thomson Locations: Tokyo, Japan, U.S
“Having access to an abundance of data is a wonderful problem to have,” Williams said. “It’s important that we continue to prioritize transparency and clarity in data, especially financial market data. In separate comments for the conference, Michelle Neal, who leads the bank’s Markets Group, also touted the need for more transparency in the bond market. “I am looking forward to the increased transparency in on-the-run transaction data” industry participants are working toward, Neal said. “Looking further ahead, we should consider whether to take additional steps toward increased transaction transparency across the Treasury universe, especially for the less liquid segments of the Treasury market, such as the off-the-run market, where transparency is currently limited.”Neal noted that the off-the-run section of the Treasury market was where market issues were concentrated in March 2020, as the coronavirus pandemic sent investors thundering toward cash, upending market functioning.
Persons: John Williams, Carlo Allegri, ” Williams, , Williams, Michelle Neal, Neal, ” Neal, Michael S, Chizu Organizations: Federal Reserve Bank of New, REUTERS, Federal Reserve Bank of New York, Treasury, bank’s Markets, Thomson Locations: Federal Reserve Bank of New York, New York, U.S
It is also not known whether Burry still holds the position or whether it's some sort of hedge against a long position. Those positions were winners for Burry as the stock market finished the third quarter lower. Burry is one of several hedge fund managers who correctly identified the housing bubble ahead of the 2008 financial crisis. Burry closed his previous hedge fund, known as Scion Capital Management, after the financial crisis. The hedge fund filings do not show all types of derivatives or private investments, so the full scope of Burry's positions are unknown.
Persons: Michael Burry, Burry, Michael Lewis Organizations: Scion, Management, iShares Semiconductor, Devices, Broadcom, Nvidia, Nasdaq, Burry, Scion Capital Management, Scion Asset Management, Nexstar Media Group Locations: Stellantis
Analysis: Biden on China vs. Trump on China
  + stars: | 2023-11-14 | by ( Analysis Zachary B. Wolf | ) edition.cnn.com   time to read: +8 min
Biden called out Chinese President Xi Jinping by name in his State of the Union address earlier this year as he slammed autocracies. How about the former US president, Donald Trump, who is desperately trying to become a world leader once again? As president, Trump supported Taiwan in numerous ways, but there is some indication he could return to a more strategically ambiguous position. “We’re not trying to decouple from China,” Biden told reporters Tuesday. There’s nobody in Hollywood that can play the role of President Xi.
Persons: Joe Biden, Biden, Xi Jinping, autocracies, Xi, ” Biden, Donald Trump, Trump, “ He’s, ” Trump, , didn’t, , Sullivan, China Biden, Taiwan “, Nancy Pelosi, Jake Sullivan, CNN’s Dana, Josh Rogin, San Francisco –, ” Rogin, Feedback Biden, We’re, Xi Trump, Vladimir Putin, Kim Jong Un Organizations: CNN, Mar, Taiwan, Trump, Xi, Ukraine, Biden, Communist, Fox News, American, Washington Locations: China, Trump’s, Mexico, Buenos Aires, San Francisco, Asia, Pacific, Ukraine, Russia, Israel, Europe, Taiwan, Beijing, “ State, US, New Hampshire, Hollywood, Mar, Syria
Peng Zhao, CEO, Citadel Securities speaks at the 2023 Milken Institute Global Conference in Beverly Hills, California, U.S., May 1, 2023. If Citadel Securities were to obtain a licence, it would be the first foreign firm to formally foray into market-making in China outside interbank and foreign exchange market making. "We are pleased to see the introduction of the market-making program in China," Zhao told Reuters in an interview in Hong Kong. Citadel Securities in July appointed Tony Tang, the former head of BlackRock's China business, to helm its China operations. This year, Citadel Securities also launched an investment-grade corporate bond market-making business in the United States.
Persons: Peng Zhao, Mike Blake, Zhao, Ken, Tony Tang, Summer Zhen, Selena Li, Sumeet Chatterjee, Edwina Gibbs Organizations: Citadel Securities, Milken, Global Conference, REUTERS, Reuters, Beijing Stock Exchange, Nasdaq, China's Stock, Treasuries, Asia, Thomson Locations: Beverly Hills , California, U.S, HONG KONG, China, interbank, Hong Kong, United States, Beijing, Asia
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Cantor's Eric Johnston, Truist's Keith Lerner and BNY's Alicia LevineEric Johnston, Cantor Fitzgerald's head of equity derivatives and cross-asset, Keith Lerner, Truist co-chief investment officer, and Alicia Levine, BNY Mellon head of investment strategy, join 'Closing Bell' to discuss the markets, their year-end playbook, and the bull versus the bear case.
Persons: Cantor's Eric Johnston, Truist's Keith Lerner, BNY's Alicia Levine Eric Johnston, Cantor Fitzgerald's, Keith Lerner, Truist, Alicia Levine, BNY Mellon
Regulators have so far not mandated any minimum net worth or investor qualifications for those trading stock options, and the stock markets almost always rise each year - both recipes for higher risk-taking and complacency. The "stark" increase in daily options trading turnover raises issues of investor protection, said Ajay Tyagi, former SEBI chief. The platform has seen an uptick in futures and options trading activity, Zerodha said in response to Reuters queries. Siddharth Joshi, a 36-year old from Surat in western India, said he lost 200,000 rupees trading options on Adani Enterprises (ADEL.NS) shares in January. "In options trading, I know my loss is capped but there is an opportunity to make maximum profit," he said.
Persons: Francis Mascarenhas, Mihir Vora, SEBI, Ashish Chauhan, Ajay Tyagi, Kailash, Bhavesh Shah, Shah, Zerodha, Siddharth Joshi, he's, Ira Dugal, Vidya Ranganathan, Raju Gopalakrishnan Organizations: Bombay Stock Exchange, REUTERS, Rights, Securities, Exchange Board of India, Trust Mutual Fund, National Stock Exchange of India Ltd, BSE Ltd, Reuters, Axis Mutual Fund, National Stock Exchange, Adani Enterprises, Thomson Locations: Mumbai, India, Rights MUMBAI, South Korea, Bhavesh, Ahmedabad, Surat
Cantor's Eric Johnston on economy: Outlook is deteriorating
  + stars: | 2023-11-13 | 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 EmailCantor's Eric Johnston on economy: Outlook is deterioratingEric Johnston, Cantor Fitzgerald's head of equity derivatives and cross-asset, Keith Lerner, Truist co-chief investment officer, and Alicia Levine, BNY Mellon head of investment strategy, join 'Closing Bell' to discuss the markets, their year-end playbook, and the bull versus the bear case.
Persons: Eric Johnston, Cantor Fitzgerald's, Keith Lerner, Truist, Alicia Levine, BNY Mellon
The rise of Treasury yields since 2022 has delivered a major boost to the tokenization of real-world assets. The total value of on-chain, real-world assets sits at $118.6 billion, according to Fundstrat. AdvertisementAdvertisementThe breathless rise of Treasury yields since 2022 has delivered a major boost to the tokenization of real-world assets. AdvertisementAdvertisementRight now, the total value of on-chain, real-world assets sits at $118.6 billion, according to Fundstrat. But the tokenization of real-world assets onto the blockchain is a newer trend that's picking up steam.
Persons: It's, , Franklin Templeton, Tom Couture, SWIFT, Couture, Lee Bratcher, Bratcher, Fundstrat Organizations: Service, Boston Consulting Group, JPMorgan, BlackRock, Barclays, Texas Blockchain Locations: tokenize, Texas
The Wall Street sign is pictured at the New York Stock exchange (NYSE) in the Manhattan borough of New York City, New York, U.S., March 9, 2020. REUTERS/Carlo Allegri/File Photo Acquire Licensing RightsNEW YORK, Nov 10 (Reuters) - A still-jittery bond market is clouding the outlook for a rally in U.S. stocks, analysts tracking measures of market volatility said. At the same time, the Cboe Volatility Index, (.VIX), which measures expectations for stock gyrations, has fallen to a seven-week low of 14.13. That could be a problem if Treasury yields - which move inversely to bond prices - resume a climb that has pressured stocks since the summer. A significant drop in Treasury market volatility would be great news for stock market bulls, Purves said.
Persons: Carlo Allegri, Stocks, Alex Kosoglyadov, Michael Purves, Purves, Saqib Iqbal Ahmed, Ira Iosebashvili, Paul Simao Organizations: New York Stock, REUTERS, Treasury, Equity, Nomura, Capital, Thomson Locations: Manhattan, New York City , New York, U.S
Bets on oil prices moving up from here are at their highest level since Russia's 2022 invasion of Ukraine, CME options market volatility data shows. Average daily volumes in energy options of the CME exchange overall are the highest since an all-time record in 2018. "The aftermath of the attacks and rising Middle East tensions did not impact oil prices as many investors expected, including ourselves," Unigestion multi-asset portfolio manager Sandrine Perret said. Reuters Graphics3/ DEFENCE STOCKSA gauge of defence stocks compiled by index provider MarketVector (.MVDEF) is 8% higher in the four weeks since the conflict began. It's also near eight-year highs versus the euro and therefore another asset class attracting questions about how it would perform if Middle East tensions are resolved.
Persons: Abdel Hadi Ramahi, Israel, Sandrine Perret, Derek Sammann, Gold, Jeff, Mikhail Zverev, Ron Temple, It's, Francesca Fornasari, Fornasari, Elisa Belgacem, Brent, Naomi Rovnick, Marc Jones, Dhara Ranasinghe, David Evans Organizations: United Arab Emirates, REUTERS, U.S White, Aegon, Reuters, Global, Defence, Lazard Asset Management, Swiss, Insight Investment, Generali Investments, Thomson Locations: Dubai, United Arab, Hamas, Israel, Gaza, Ukraine, Jordan, Egypt, China, Taiwan, Europe
There are several opportunities over the next month for investors to cash in on a long-standing trend by buying options, according to Goldman Sachs. "We find that call buying around analyst days has been a systematically profitable option buying strategy. The reason the strategy works is that there appears to be an upward bias to share price movement after analyst days that is not priced in to the options market, Goldman said. "Company managements take the opportunity of analyst days to review recent performance, layout strategic priorities, provide/update forward guidance, reveal long-term targets etc. Despite the significance of analyst days, we also observe that the options market tends to underprice volatility around analyst days," the note said.
Persons: Goldman Sachs, Sesha Phani, Goldman, Ingersoll Rand, — CNBC's Michael Bloom Organizations: Defense, L3Harris Technologies Locations: Roblox
LSEG (London Stock Exchange Group) CEO David Schwimmer speaks during the Reuters NEXT Newsmaker event in New York City, New York, U.S., December 1, 2022. "IPOs will come back, when the environment stabilises and improves," Schwimmer told Reuters in an interview in Singapore. "The reforms that the FCA is putting through, they're moving relatively quickly, but the markets move quickly too. LSEG bought Refinitiv for $27 billion in early 2021, turning the exchange into a major market data company overnight to challenge rival Bloomberg. Schwimmer said the roll0out of the new partnership product in 2024 will make it easy for customers to use LSEG data in a cloud environment.
Persons: David Schwimmer, Brendan McDermid, Schwimmer, LSEG, Vidya Ranganathan, Lawrence White, Sharon Singleton, Tomasz Janowski Organizations: London Stock Exchange Group, Reuters, REUTERS, Rights, European Union, Amsterdam, London, EU, Bloomberg, Thomson Reuters, Reuters News, Investors, Microsoft, Thomson Locations: New York City , New York, U.S, Rights SINGAPORE, London, New York, Singapore, Ukraine, Gaza, LSEG
MPS gets dismissal of $481 mln in claims upheld in court
  + stars: | 2023-11-09 | by ( ) www.reuters.com   time to read: +1 min
MILAN, Nov 9 (Reuters) - Milan's civil appeals court on Thursday upheld a ruling rejecting a 450 million euro ($481 million) damage claim brought by Luxembourg-based fund Alkem against Monte dei Paschi di Siena (BMPS.MI), the bank's former top management and its adviser Nomura , the court said in a statement. The rulings are beneficial for MPS which is 64% owned by the state following a 2017 bailout, and must be re-privatised. Alken had sought around 450 million euros in compensation and Virmont SA another 4.7 million, the court said, adding there were further smaller claims from some Italian investors. The civil appeals court in Milan also cited the ruling of the criminal court of appeal in Milan that had acquitted all the defendants in the case centring around the two derivatives deals, a decision confirmed by Italy's top court last month. ($1 = 0.9356 euros)Reporting by Emilio Parodi, editing by Valentina ZaOur Standards: The Thomson Reuters Trust Principles.
Persons: Siena, Nomura, Alken, Emilio Parodi, Valentina Za Organizations: MILAN, Monte dei, Deutsche Bank, Nomura, MPS, Virmont SA, Thomson Locations: Luxembourg, Milan
Edelman also founded Edelman Financial, a large firm of registered investment advisors. The potential of a bitcoin ETF has appeared to help fuel a recent rally in the cryptocurrency. Concerns from advisors Crypto's dramatic rise has largely come without the embrace of the traditional financial system, such as financial advisors and major banks. But not all financial advisors seem ready to embrace crypto just because investing in it is simpler. Client demand Even if advisors are skeptical of crypto, the arrival of bitcoin ETFs is sure to generate more questions from clients.
Persons: BlackRock, Ric Edelman, Edelman, Bitcoin, bitcoin, Sam Bankman, Randy Frederick, Frederick, Andrew Morgan, Taylor, Morgan, that's, Amy Hescht, They're Organizations: Nasdaq, Digital Assets Council, Financial Professionals, Edelman, The Securities, Exchange Commission, SEC, Blackrock, Schwab Center, Financial Research, Fidelity, Presper Financial, Advisors, fund's Locations: United States, U.S, Bitcoin, BlackRock, Michigan, Akron , Ohio
NEW YORK, Nov 8 (Reuters) - Fear has plunged in the U.S. equity market following last week's explosive rally, and some options mavens are urging clients to stock up on portfolio protection while it's cheap. Meanwhile, the Cboe Volatility Index (.VIX), known as Wall Street's fear gauge, has tumbled to its lowest level in seven weeks. They recommended taking advantage of the drop in volatility to deploy stock replacement trades, which involve swapping long stock positions for cheap call options that would reap gains if the market continued to rally. Investors' equity positioning fell to a five-month low before last week's rally, Deutsche Bank data showed. With investors less exposed to stocks, "they don't necessarily need to be rushing to get hedges now," Murphy said.
Persons: Matthew Tym, Cantor Fitzgerald, Cantor's Tym, Chris Murphy, Murphy, Saqib Iqbal Ahmed, Ira Iosebashvili, Andrea Ricci Organizations: Federal, Reuters Graphics, Barclays, Treasury, Susquehanna Financial Group, Deutsche Bank, Thomson Locations: U.S, Santa
And those workouts are becoming mathematically untenable even for private lenders. Borrowing costs for the CRE market have risen more than income, a situation prompted by the steepest jump in interest rates in decades. NO REAL OPTIONRising caution among private lenders will worsen the paucity of liquidity for property owners who have no real exit option. Some private lenders faced the risk of ending up paring their portfolios that were expensive to manage, he added. But the firm's head of commercial real estate economics Thomas LaSalvia said probability of a contagion effect was low.
Persons: Mike Comparato, Jeff Holzmann, Razmig Boladian, Claudia Faust, Alex Horn, Horn, Jay Hiemenz, Thomas LaSalvia, Shankar Ramakrishnan, Anna Driver Organizations: Realty Trust, RREAF Holdings, Rubicon Point Partners, Hawkeye Partners, Thomson Locations: Franklin, Texas
India’s gamified equities are a wake-up call
  + stars: | 2023-11-08 | by ( Pranav Kiran | ) www.reuters.com   time to read: +4 min
The result is an acceleration of Indian savings away from gold and real estate into financial products. However, it is also leading to what Ashish Gupta, chief investment officer at Axis Bank’s mutual fund, dubs “the gamification of Indian equities”. A frenzy for index options has driven up volume in the derivatives market to the tune of $4.3 trillion a day. Retail traders made up a higher share of equity derivatives turnover than their institutional counterparts on the National Stock Exchange between 2017 and 2021. Whatever the fix, it’s a reminder that India’s digital leapfrog which other developing countries are urgently trying to replicate has a dark side too.
Persons: Francis Mascarenhas, Ashish Gupta, Gupta, weren’t, Ananth Narayan, SEBI, Nithin Kamath, Zerodha, Lalit Keshre, Una Galani, Thomas Shum Organizations: Bombay Stock Exchange, REUTERS, Rights, Reuters, National Stock Exchange, Tiger, Securities, Exchange Board of India, Thomson Locations: Mumbai, India, U.S
But they are going only as far as the safest bets in the junk category, bonds rated BB and B. Junk bond spreads, the additional interest rate investors demand over safe Treasury bonds, tightened sharply. The spreads of those rated BB and B, or the higher rungs of junk, had tightened 47-52 basis points last week, according to Informa Global Markets data. Four junk bond issuers – Bombardier (BBDb.TO), Venture Global LNG, Smyrna Ready Mix Concrete and InfraBuild Australia - announced bond offerings on Monday. The spotty access to bond markets does not bode well for poorly rated companies.
Persons: Rick Wilking, , Edward Marrinan, Peter Knapp, Winnie Cisar, bode, Morgan Stanley, Moody's, Manuel Hayes, Shankar Ramakrishnan, Paritosh Bansal, Andrea Ricci Organizations: REUTERS, Federal, Nikko Securities Americas, Investors, JPMorgan, Informa, CCC, Bombardier, Venture Global LNG, , London, Insight Investment, Barclays, Thomson Locations: Westminster , Colorado, Smyrna, Australia
REUTERS/Andrew Kelly/File Photo Acquire Licensing RightsLONDON, Nov 7 (Reuters) - Europe has nowhere to hide from U.S. plans to mandate clearing of U.S. Treasuries transactions that will need to be carefully introduced over time, a global derivatives industry body said on Tuesday. A clearing house is backed by a default fund, ensuring that a transaction is completed even if one side of a transaction goes bust. Regulators began mandating the use of clearing more widely in derivatives markets after the global financial crisis in 2008 to improve stability and transparency. "It's something that you need to look at carefully and at this stage I think we still have more questions than answers as to how the actual process of clearing Treasury cash and Treasury repo will play out," Litvack said. Much will hinge on the details in the final rules that determine who will be within scope, O'Malia said.
Persons: Andrew Kelly, It's, Eric Litvack, Litvack, Scott O'Malia, O'Malia, Huw Jones, Chizu Organizations: U.S . Securities, Exchange Commission, Washington , D.C, REUTERS, Regulators, International, Association, Financial, Thomson Locations: Washington ,, Europe, U.S, Treasuries, United States, repos
Indicted FTX founder Sam Bankman-Fried leaves the United States Courthouse in New York City, U.S., July 26, 2023. MAY 2019Bankman-Fried and former Google employee Gary Wang found FTX as a new platform to trade crypto tokens and derivatives. Bankman-Fried debuts on the Forbes billionaires list, which estimates his net worth at $22.5 billion. Alameda gives crypto lender Voyager Digital a $200 million credit facility, and FTX gives lender BlockFi a $250 million loan. In a post-arrest blog post, Bankman-Fried denies stealing funds and blames FTX's collapse on a broader downturn in crypto markets.
Persons: Sam Bankman, Fried, Amr Alfiky, Gary Wang, Larry David, CoinDesk, Binance, FTX, Changpeng Zhao, David, Tom Brady, Wang, Caroline Ellison, District Judge Lewis Kaplan, Nishad Singh, Kaplan revokes, Luc Cohen, Noeleen Walder, Daniel Wallis Organizations: United, REUTERS, Massachusetts Institute of Technology, Jane Street Capital, Alameda Research, Google, Forbes, Alameda, NFL, DEC, U.S, District, New York Times, Metropolitan Detention Center, Thomson Locations: New York City, U.S, Alameda, Bahamas, Manhattan, United States, Palo Alto , California, New York
As earnings season grinds on, Wall Street has been pleasantly surprised by the results. Sometimes the pros might be bearish on a stock, while simultaneously raising their earnings expectations for that very same company. Taking advantage of the difference between what Wall Street says will happen and where they expect earnings to go can prove a profitable trading strategy. Just ask Sam Burns, founder and chief strategist of Mill Street Research, an independent investment research firm geared towards institutional investors. Burns will then take those stocks and run them through his proprietary Monitor of Analysts' Earnings Revisions model.
Persons: Julian Emanuel, you'd, Sam Burns, Burns Organizations: Evercore ISI, Mill, Research, Wall, Analysts
The Commodity Futures Trading Commission rejected a recent proposal to launch a derivatives market tied to congressional election results. Photo: Stephen Voss for The Wall Street JournalWASHINGTON—An online-trading startup is suing the federal government after regulators blocked its plan to let people bet on U.S. elections. The company, Kalshi, said in a complaint filed Wednesday in the U.S. Court of Appeals for the D.C. Circuit that the Commodity Futures Trading Commission was “arbitrary, capricious and otherwise contrary to law” when it rejected the proposal to launch a market for derivatives tied to results of congressional elections.
Persons: Stephen Voss Organizations: Futures Trading Commission, The Wall Street Journal WASHINGTON, U.S ., Appeals, Circuit, Futures Locations: U.S
It's expected to pause interest rate hikes. On Wednesday, the Federal Open Market Committee is expected to announce its next interest rate decision, and a hike probably isn't in the cards. In September, the Fed paused interest rate hikes as it continued to receive promising data on the country's economic recovery. Powell has not indicated whether a interest rate cut will come this year to get consumers further relief. AdvertisementAdvertisementEven if interest rate cuts are not on the horizon anytime soon, administration officials are confident Americans will not face a recession as they enter 2024.
Persons: It's, , Nick Bunker, Bunker, Jerome Powell, Powell, we've, Greg McBride, we're, McBride, Janet Yellen, Joelle Gamble, Gamble Organizations: Federal, Service, Fed, North America, New York Federal, Bloomberg, White, National Economic Council Locations: Israel, Ukraine
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