Equity Derivatives Monthly - March 2019
SPI volumes have broken another record with over 2.2million
contracts trading in March up 20% year on year and up 10% since
last roll/previous record (December).
Single Stock Options and Index Options saw a slight decline,
however Total Return Single Stock (TORESS) LEPOs were at their
highest level since June 2017 with an increase of 232% compared
with March 2017.
View report >
Australian Grains Market
March 2019
March 2019 delivery saw a total of 47,180 tonnes being tendered
substantially higher than the March 2018 delivery of 27,740 tonnes,
proving the ASX futures are continuing to be used for physical
delivery as well as a price/risk management tool.
Aggregate Open Interest in the East Australia Wheat contract
(9892 lots) still remains substantially higher than the last couple
of years at this time.
View report >
CME Group: Political Brinkmanship
Could U.S. political brinkmanship cause a government shutdown
and technical debt default, putting the economy at risk in the
fourth quarter?
Watch video >
CME Group: Crude Oil Insights Monthly Report
Highlights:
- Benchmark crude futures averaged 7% higher in February
compared with January, continuing to be buoyed by
growing optimism over a US-China trade deal.
However, by early March, the rally had stalled.
The path to a trade agreement has been tough and the negotiating
teams have been working through major hurdles right into the final
stages, especially around the structural changes Washington has
demanded of Beijing and the implementation mechanism.
- As a rising tide of crude from the Permian begins to flow to
refineries and export terminals along the US Gulf Coast, the market
needs a reliable and transparent value for the barrels at oil
terminals on the USGC. The recently-launched WTI Houston crude
futures contract aims to serve that purpose.
View Report >
ASX Equity Derivatives Monthly - February 2019
SPI volumes were still strong against the previous month but
down compared to the record volume we saw in February 2017 due to
lower volatility. Single stock options had a slight increase in
volumes whilst Index options followed the futures trend down.
Australian equities did perform better than all other asset
classes last month with good gains across several sectors. A-REITs
saw the strongest returns and Financials were helped by the relief
that the Royal Commission was not as bad as feared for the
banks.
VIX remained flat hovering from 13 down to 12 by month end.
View Report >
CME Group: Market Movers - March Crop Production Report
Industry experts Dave Hightower and Dan Basse preview the March
Crop Production report to be released on 8th March
2019.
Watch video >
Phase Transitions: Major changes for markets to navigate
From the rising cost of capital to the trade war and key
demographic changes, markets have to navigate through a series of
phase transitions in 2019.
Watch video >
What's in store for Markets in 2019? Key themes to watch
Markets could see elevated volatility in 2019 as the lag effects
of the trade war and massive tax cuts that have widened the budget
deficit, resulting in a jump in Treasury yields, hit home. And, the
deceleration in the growth of corporate profits could make it a
challenging year for equities and test the pace of Fed rate
hikes.
- Will lag effects of interest rate hikes, trade war with China
show up in 2019?
- Oil market overwhelmed by rising supply; U.S. shale producers
keep pumping
- Could equities volatility escalate in 2019 as bond yields rise
amid growing budget deficit?
- FX markets could be driven by country-specific issues from UK
to Brazil to China
Watch video >
US Election Risk?
Hedge market-moving impacts with equity
options
The November 6 U.S. Midterm elections are fast approaching, and
the uncertainty of new policies or a divided congress can impact
volatility and stock prices.
In the November 2016 U.S. election, equity index options volume
rapidly rose overnight, with 655K E-mini S&P 500 options traded
before the U.S. market opened the next day. Similarly, 475K+
contracts were traded overnight around the Brexit vote in June
2016.
Take advantage of the around-the-clock liquidity of our futures
and options products to help you stay ahead of this election.
- Use Monday and Wednesday options: E-mini and standard S&P
500 options expiring on November 5 (E1AX8 and
S1AX8) and November 7 (E1CX8 and
S1CX8).
- Use
S&P Select Sector futures, across 11 sectors, to further
express your view and complement your trading strategy.
ASX Equity Derivatives Monthly - September 2018
Strong SPI volumes led equity derivative markets in September
increasing by 15% compared with last year.
We had a record day with 666,674 SPI contracts traded on Tuesday
the 18th thanks to large roll activity.
Single stock and Index option volumes were subdued compared with
last year, however further trades in ASX Equity FlexClear and
improved weekly option volumes provided some positive notes.
In general market news, VIX looked to be on the rise early in
the month thanks to weaker equity markets but as market conditions
improved VIX retreated back to its recent levels and finished the
month a touch over 10.5.
The resource sector was the ASX 200 standout performer in
September, helped by the strength in iron ore and oil prices. All
other sector/market themes eased back, with financials again
suffering a notable loss.
View report >
CME Group: Market Movers - Looking ahead to the October Crop
Report
Industry experts Dave Hightower, Founding Principal of The
Hightower Report, and Dan Basse, President of AgResource
Company, preview the October Crop report and discuss
why this report will be more focused on supply vs. demand.
Watch video >
ASX Grains Focus
In the September 2018 ASX Grains Focus monthly report:
- Total traded volume of 10,381 lots across EA Wheat contracts,
approaching 10,611 lot monthly record set in December 2016
- Prices continue to trend higher with high of $450 in the Jan'19
EA Wheat contract
- Record dry conditions persist in much of NSW
View report >
CME Group: Market Movers - Looking ahead to the September Crop
Report
Industry experts Dave Hightower, Founding Principal of The
Hightower Report, and Dan Basse, President of AgResource Company,
preview the September 12 USDA report discussing corn and soybean
yields in advance of its publication.
Watch video >
ASX Grains Focus
In the August 2018 ASX Grains Focus monthly report:
- Record trading volume for the Calendar Yr with 9,750 lots
- High price of $410 in Eastern Australian Wheat
View report >
ASX Grains Focus
In the July 2018 ASX Grains Focus monthly report:
- Record dry conditions persist across East Coast cropping
regions
- ASX Grain futures flat price and basis trade at contract
highs
- Increasing activity in ASX red crop wheat futures
View report >
CME Products: Top 20 Futures for July 2018 8am-8pm (AEST)
CME Group: Trade war implications for the economy and
markets
Fallout from the escalating Sino-U.S. trade war is rippling
through financial and commodity markets and if prolonged could
impede growth in both nations.
Watch video >
Equity Derivatives Monthly - July 2018
2017/18 Financial Year in Review
It was the year of the index for equity derivatives. Index
futures volumes up 13% and index options volumes up 20% compared
with FY 16/17. Average daily volume for the year was 55,000 (index
futures) and 50,000 (index options) equating to $8.5 and $3.1
billion notional value traded per day.
Interestingly non-roll months drove the increased futures
turnover up 20% for the year thanks to increased volatility in
February and April. Whilst index option weekly expiries continue to
grow now accounting for 1 in every 5 trades in index options.
June Statistics
June 2018 saw the Australian market close at its highest level
in 10 years (6194) up 3.4% for the month. The ASX200 outperformed
global markets due to strength in the resource and energy sectors
and a turnaround in the performance of the banks after pressure on
prices related to the Royal Commission.
World market growth was characterised by continued strength in
developed markets; particularly in the US, after a strong US
reporting season. Europe was soft while Asia (excluding Japan) and
emerging markets (EM) were off by 2-3%.
Record volumes in SPI futures with just under 2 million
contracts trading up 8% vs 2017. VIX is slightly up from last month
currently at 13.5 and hovering between 12.5 and 13.5 for the
month.
View report >
CME Group: Looking ahead to the July Crop Report
Is the USDA forecasting politics instead of pure model/survey
for their July WASDE report? Industry exports Dave Hightower,
Founding Principal of the Hightower Report, and Dan Basse,
President of AgResource Company discuss this and more.
Watch video >
ASX Grain Focus
In the July 2018 ASX Grains Focus monthly report:
- Australian wheat basis firm with patchy rain across East
Coast
- BOM's El Nino watch upgraded from "Inactive" to "Watch"
- ABARES decrease Australian wheat production estimate
View report >
CME Group: Factors likely to shape Fed's interest rate path in
H2 2018
Video highlights:
- Fed could hike rates at least once in H2 2018 as core inflation
edges up
- A second rate increase in H2 is possible but dependent on
inflation data
- Fed aiming for 'rate neutrality', when Fed funds rate equals
core inflation
- 10-year Treasury Note at 3% could be a floor, not ceiling, if
inflation strengthens
Watch video >
CME Group: OPEC Watch Tool
Stay up to date with the latest probabilities of the OPEC
meeting expected outcomes with the CME OPEC Watch Tool.
Watch video >