Trading Floor Closures Hurt Stock Futures Liquidity, Peak6 Says
April 12, 2020--The closure of U.S. trading floors has taken some liquidity out of the futures market as volumes shifted to exchange-traded funds, according to Peak6 Investments LLC.
It has become more difficult to trade S&P 500 e-mini futures as volume has migrated to products based on the all-electronic SPDR S&P 500 ETF Trust, said Neel Shah, a senior trader at the options trading firm.
World Bank Finance and Coronavirus (COVID-19)
April 9, 2020--The COVID-19 pandemic expanded rapidly from a health emergency to an extraordinary shock to the global economy with far reaching negative consequences for financial markets. Governments around the world are taking swift action to offset the negative effects on firms and people who have lost jobs.
Emerging markets and developing countries, some of which were prone to financial market volatility before the coronavirus pandemic, are especially exposed. This page outlines policy guidance for ways to mitigate risks to financial markets and maintain liquidity to support economic recovery once the health crisis is resolved.
Bitcoin's Price To Be Boosted By May's 'halving'-But Other Issues Will Have More Impact
April 8, 2020--The historic Bitcoin halving event next month will boost its price-but other key drivers will have a more significant, longer--term impact.
This is the prediction from Nigel Green, the CEO and founder of deVere Group, one of the world’s largest independent financial advisory and services organisations.
It comes as the Bitcoin price has surged around 12 per cent over the last week and 6 per cent Monday-outperforming almost all the major indices.
It also comes ahead of only the third-ever Bitcoin halving event in May.
Emerging market economy exchange rates and local currency bond markets amid the Covid-19 pandemic
April 7, 2020--Borrowing through domestic currency bonds has not insulated emerging market economies (EMEs) from the financial shock unleashed by Covid-19; EME local currency bond spreads spiked amid sharp currency depreciations and capital outflows.
Portfolio investors face amplified losses as local currency spreads and exchange rates move in lockstep; their revised portfolio allocations in turn strengthen this correlation.
EMEs with monetary policy frameworks that are equipped to address the feedback loop between exchange rate depreciation and capital outflows stand a better chance of weathering the financial fallout from the Covid-19 pandemic.
Interest Rate Controls, Capital Flow Restrictions, and Other Potentially Costly Financial Market Regulatory Tools
April 6 2020--With the surge in public debt in the wake of the global financial crisis, financial repression-administrative restrictions on interest rates, credit allocation, capital movements, and other financial operations-has come back on the agenda.
In our recent working paper, we argue that countries would be better-off without financial repression.
IMF An Early View of the Economic Impact of the Pandemic in 5 Charts
April 6, 2020--The COVID-19 pandemic has pushed the world into a recession. For 2020 it will be worse than the global financial crisis. The economic damage is mounting across all countries, tracking the sharp rise in new infections and containment measures put in place by governments.
China was the first country to experience the full force of the disease, with confirmed active cases at over 60,000 by mid-February. European countries such as Italy, Spain, and France are now in acute phases of the epidemic, followed by the United States where the number of active cases is growing rapidly. In many emerging market and developing economies, the epidemic appears to be just beginning.
Graphic: 'Sustainable' funds a safer harbour in coronavirus market meltdown
April 6, 2020--Funds focused on buying stocks that score well on environmental, social and governance-related metrics proved a safer harbour for investors during the coronavirus-fuelled market rout last month, Morningstar data shows.
With trillions of dollars wiped off stock market values during March, there were few places to hide completely for funds only allowed to bet on rising prices, yet investors in funds focused on environmental, social and governance metrics (ESG) lost less money than their non-ESG peers.
The economic effects of COVID-19 around the world
April 3, 2020--Latest developments:
More than 6.6 million Americans filed unemployment claims last week.
The Asian Development Bank warns the global cost of the outbreak might reach $4.1 trillion.
More than 900,000 people have lost their jobs in Spain amid the coronavirus lockdown.
Half of jobs in Africa are at risk due to the pandemic
With more than 1 million confirmed cases of COVID-19, businesses are coping with lost revenue and disrupted supply chains as factory shutdowns and quarantine measures spread across the globe, restricting movement and business activity.
Here are a few ways the outbreak is sending ripples around the world.
Global financial shocks
As the world grapples with the coronavirus, the economic impact is mounting-with the G20 Finance Ministers and Central Bank Governors having a conference call on 23 March to discuss how to address the emergency.
March 2020 Report Into Cryptocurrency Exchanges (From CryptoCompare)
April 3, 2020--13 March Market Crash Saw Highest Daily Volumes Ever
The massive market crash on March 12-13 saw daily volumes hit $75.9bn in a single day (13 March)-the single greatest daily volume recorded in cryptoasset history.
Most of this figure came from lower-tier exchanges ($54.3bn), with volume from Top Tier exchanges totalling $21.6bn (28.5%)-one of the highest Top-Tier volumes recorded.
Spot Volumes Have Surged in Q1 2020
Since December 2019, volumes from Top-Tier exchanges have continued to increase month on month. In March, volume from many of the largest Top Tier exchanges increased 35% on average (vs February).
Derivatives Volumes Hit All-Time-High in March 2020
Cboe Global Markets Reports March 2020 Trading Volume
April 3, 2020--All business lines post year-over-year increases: Options ADV up 69%, Futures up 35%, U.S. Equities up 129%, European Equities up 29% and Global FX up 43%
Cboe's four options exchanges combined set a new monthly ADV record with nearly 12 million contracts traded
S&P 500 Index (SPX) options set a new monthly total volume record with more than 43.4 million contracts traded.
Cboe Volatility Index (VIX) options and futures ADV up 112% and 36% year-over-year, respectively
Cboe FX set a new monthly ADNV record with nearly $55 billion in notional value