All articles tagged with #derivatives trading
JPMorgan attributes the recent sharp decline in the stock market to a rush by investors to sell levered ETFs, which amplified volatility and accelerated the selloff, with derivatives market dynamics playing a significant role. The market may stabilize if the S&P 500 recovers to around 6,663, restoring positive gamma conditions that promote stability.
The upcoming Bitcoin halving event is expected to slow down the issuance rate for coins into circulation, leading to excitement among traders and investors for higher prices. However, the predictability of the halving event contrasts with the uncertainty of an SEC spot ETF decision, leading to potential opportunities for a post-halving rotation, particularly into Ethereum. The market dynamics suggest that while the halving narrative is being priced into short-term BTC options, the lack of optimism around Ethereum due to potential SEC designation and ETF disapproval is causing traders to bid for Ethereum puts. This presents an opportunity to buy the laggard Ethereum, as its supply has already stopped growing and is actively decreasing, while recent upgrades and developments position it as a potential investment opportunity post-BTC halving.
Binance's Australian derivatives license has been canceled at the exchange's own request, according to the Australian Securities & Investments Commission. The regulator had begun a "targeted review of Binance" in February. Binance's derivatives clients in Australia will not be able to open or increase their existing trading positions from April 14, and by April 21, Binance will be required to close out any remaining trading positions. Regulatory scrutiny of Binance has been mounting in recent weeks and months, with anti-money laundering and know-your-customer compliance issues at the heart of the U.S. Commodity Futures Trading Commission's extensive complaint against the crypto exchange and its founder, Changpeng Zhao.
The US Commodity Futures Trading Commission (CFTC) has sued Binance for violating trading and derivatives laws, alleging that the crypto exchange offered its derivatives trading services to US customers without applying for a derivatives license. The CFTC has demanded that Binance and its CEO, Changpeng “CZ” Zhao, should be banned from engaging in any of the conduct described in this case, and pay back the trading profits, revenues, salaries, commissions, loans and fees derived from US persons, and pay civil penalties for the violations. The CFTC lawsuit against Binance is a big deal for the crypto industry, given its general belief that the CFTC doesn’t pursue small crypto players without merit.