Insights, analysis, and updates from the National Introducing Brokers Association
Jack Bouroudjian explains how the first half of the year was record-breaking in equity markets. He then examines how major news stories like trade may influence the appetite for risk as we enter the second half of the year. The post Market Update: Looking Ahead to The Second Half appeared first on OpenMarkets. Source: CME Open Markets - Market Update: Looking Ahead to The Second Half
There has always been a contrasting yet complimentary relationship between U.S. equities and the Bond market, and I believe there always will be. In addition, one typically leads the other and that leadership continues to be debatable from market cycle to market cycle. Therefore, decades of market cycles have taught us that typically when stock prices go up, bond prices go down. In other words, bonds and stocks have an inverse relationship. If someone were fully invested, they would most likely have to sell one in order to buy the other. This periodically can create volatility. The relationship between stocks and bonds can be tumultuous at times but, the two have always found a way to live together. Risk On, Risk Off To better understand Treasuries, it is important to recognize that the relationship between treasury prices and yields of treasuries is an inverse one. When bond prices are falling...
Jack Bouroudjian discusses the reconstitution of the Russell 2000 index, and how that might affect other equity indexes in the weeks ahead. He also touches on what the appetite for risk might be heading into the third quarter. The post Market Update: Russell Reconstitution appeared first on OpenMarkets. Source: CME Open Markets - Market Update: Russell Reconstitution
There has always been a contrasting yet complimentary relationship between U.S. equities and the Bond market, and I believe there always will be. In addition, one typically leads the other and that leadership continues to be debatable from market cycle to market cycle. Therefore, decades of market cycles have taught us that typically when stock prices go up, bond prices go down. In other words, bonds and stocks have an inverse relationship. If someone were fully invested, they would most likely have to sell one in order to buy the other. This periodically can create volatility. The relationship between stocks and bonds can be tumultuous at times but, the two have always found a way to live together. Risk On, Risk Off To better understand Treasuries, it is important to recognize that the relationship between treasury prices and yields of treasuries is an inverse one. When bond prices are falling...
Jack Bouroudjian discusses the reconstitution of the Russell 2000 index, and how that might affect other equity indexes in the weeks ahead. He also touches on what the appetite for risk might be heading into the third quarter. The post Market Update: Russell Reconstitution appeared first on OpenMarkets. Source: CME Open Markets - Market Update: Russell Reconstitution
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CME Group, the world's leading and most diverse derivatives marketplace, today announced it will launch the next generation of its industry-leading Standard Portfolio Analysis of Risk (SPAN) margin framework – CME SPAN 2. The new framework is slated for testing in the second half of 2019 and, pending regulatory review and approval, roll out in the first half of 2020. CME SPAN 2 will provide enhanced risk management capabilities in a single, unified interface by maintaining SPAN's current calculations and functions while incorporating several new modeling, reporting and margin replication enhancements. As with SPAN, CME SPAN 2 will continue to be based on a Value at Risk (HVaR) framework, using historical data to model how a position or portfolio may gain or lose value under various risk scenarios. CME SPAN 2 will enable implementation of granular and dynamic adjustments to margins at a product and portfolio level. In addition, CME...
CME GROUP: Something Big Is Coming to Equities Trading. Micro E-mini Futures. Launching May 2019. Meet Micro E-mini futures, the next big thing in equities trading. Discover the benefits of trading equity index futures for a fraction of the financial commitment, with contracts 1/10th the size of classic E-mini futures. Visit cmegroup.com/microemini for the latest details.
Market relationships seem to have normalized: equities to fixed income, volatility to equities and fixed income, forex to the rest of the capital market. Jack Bouroudjian highlights those relationships and the impact they may have as we head into February. The post Market Update: Relationship Normalization appeared first on OpenMarkets. Source: CME Open Markets - Market Update: Relationship Normalization
For most global investors, U.S. dollar hedging was the only currency risk management strategy to follow in 2018. The dollar rose against all of its major developed market crosses – by 3.4 percent vs. the euro; 4.5 percent vs. Canadian dollar; 5.1 percent vs. pound sterling; 5.8 percent vs. Australian dollar; and a more modest 0.3 percent vs. the yen. Dollar strength against the supposed darlings of the emerging markets – the BRICs (Brazil, Russia, India and China) – was even more marked. The Brazilian real declined 15.1 percent against the USD, the Russian rouble 11.8 percent, Indian rupee 10.4 percent and the yuan by 4.2 percent. Long dollar was more than a good hedge, against a backdrop of generally declining asset prices it was among the trades of the year. The USD also burnished its credentials as a safe haven. When the S&P 500 peaked on 21 September 21,...
