Latest news with #derivatives
Bloomberg
2 days ago
- Business
- Bloomberg
UAE's Oil Partners Face Trading Losses After Surprise Supply Cut
An unexpected move by the United Arab Emirates to cut volumes of a key oil grade sold to project partners including BP Plc and TotalEnergies SE is set to put a dent in some trading books. The hit stems from a mismatch in positions taken in the derivatives market to hedge against their expected supply of Murban crude for July, according to people familiar with the matter. The discrepancy may have led to losses as high as $12 a barrel for some equity shareholders, which is considered steep given profits can be as little as a few cents for each barrel, they added.
Bloomberg
2 days ago
- Business
- Bloomberg
The Rise of Derivatives : Navigating Risk and Regulatory Landscape in India
The growth in the use of derivatives across India has spotlighted the urgent need for robust risk controls, independent valuation and increased transparency into India's OTC derivatives markets. Join product experts at Bloomberg as we explore how institutions can proactively manage derivatives exposure, comply with global frameworks like SIMM, and leverage hedge accounting for financial reporting. Agenda: Precision in Pricing: Mastering Derivatives Valuation Speakers Stephanie Cheng Sellside Product Manager Bloomberg Stephanie is the Sellside Product Manager for Counterparty Risk at Bloomberg. She has been active in the risk space since 2019 interacting with clients and industry bodies. She was heavily involved in collateral workflows and SIMM regulatory requirements since the preparation for Phase 4 of the Uncleared Margin Rule. Andre Pereira Hedge Accounting Product Manager Bloomberg André is a product manager at Bloomberg, responsible for the hedge accounting solution in EMEA. He has extensive experience in the technical accounting (including hedge accounting) and valuation of complex financial instruments under IFRS, providing technical accounting advice, risk management and treasury consulting services to a number of FTSE 100 and large multinational corporate treasuries. He has dedicated large part of his career improving the effectiveness and efficiency of treasury activities, processes and workflow; whether by active participation in the strategic vision and product roadmap planning of software vendors or as consultant and advisor to large corporations and financial institutions. Alexis Preira APAC head of Financial Engineering Bloomberg From Singapore, Alexis is APAC's head of Financial Engineering for Bloomberg. With a 15 years strong experience in the Financial Market, Alexis leads a team of highly skilled professionals, delivering solutions and support covering OTC Derivatives and Structured Products of all asset classes and complexities, as well as their underlying market data. Alexis graduated From the Paris Diderot University in Paris, with a MSc in Statistics, Probabilities and Finance. Tracy Wong Risk and Derivatives Specialist Bloomberg Tracy looks after derivatives and risk management solutions for sell-side institutions in India and Singapore, focusing on regulatory initiatives such as SIMM, IRRBB and FRTB.
Yahoo
5 days ago
- Business
- Yahoo
Hyperliquid Dominates DEX Perps
Hyperliquid saw its trading activity steadily climbing since April with $244 billion in volume last month and capturing over 6.2% of the global derivatives market. In addition to the platform's dominance among DEX-perpetuals, the HYPE token reached an all-time high of $45.90 earlier last week. CoinDesk's Josh de Vos breaks it down on 'Chart of the Day,' presented by
Yahoo
5 days ago
- Business
- Yahoo
CME Group Inc. (CME): A Bull Case Theory
We came across a bullish thesis on CME Group Inc. on Special Situation Investing's Substack by Six Bravo. In this article, we will summarize the bulls' thesis on CME. CME Group Inc.'s share was trading at $273.99 as of June 20th. CME's trailing and forward P/E ratios were 27.56 and 24.88, respectively, according to Yahoo Finance. A view of a financial exchange, showcasing the trading activities of the company's futures and options contracts. CME Group (CME) represents the gold standard among U.S.-based derivatives exchanges, boasting a capital-light, high-margin business model and a remarkable track record of long-term shareholder returns. As an exchange, CME occupies a unique and advantageous niche similar to brokers, royalty companies, and consumer monopolies—businesses that generate revenue from activity rather than market direction, enabling consistent profitability regardless of economic cycles. Unlike many businesses susceptible to competitive pressures, CME benefits from oligopolistic market structures and high barriers to entry, with scalable infrastructure that supports vast trading volumes without significant additional costs. The ability to cross-sell trading data as market research and to create proprietary products, like weather and cryptocurrency derivatives, distinguishes CME from stock exchanges dependent on third-party listings. Its innovation engine enables it to monetize demand signals independently, creating instruments tailored for clients' risk-management needs, as seen with volumetric hedging tools for utilities. CME's historical dominance is underpinned by a legacy of product launches dating back to the 1800s, and its stock has dramatically outperformed the S&P 500 since its 2002 IPO, delivering a 20% CAGR. While U.S. exchanges have outpaced their international peers, speculation about the Cantillon Effect and co-location with the world's reserve currency adds a layer of intrigue around future performance amid de-dollarization. Yet, CME's real advantage lies in its flexibility and innovation, not external conditions. The firm's ability to consistently identify and capitalize on untapped markets, like crypto futures, suggests it will continue to grow in ways investors cannot yet predict. CME is a quintessential 'fish-in-a-barrel' investment in a concentrated, quality-focused portfolio. Previously, we covered a on CME Group Inc. by Magnus Ofstad in January 2025, which highlighted its leadership in derivatives and strong cash flows. The stock has appreciated by approximately 15.6% as trading volumes surged. The thesis still stands given CME's resilient model. Six Bravo shares a similar view but emphasizes its capital-light structure and innovation-driven growth. CME Group Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 73 hedge fund portfolios held CME at the end of the first quarter, which was 73 in the previous quarter. While we acknowledge the risk and potential of CME as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Sign in to access your portfolio
Zawya
20-06-2025
- Business
- Zawya
Global trading giants step up India presence, fuelling talent rush, exchange upgrades
MUMBAI - Half a dozen global trading giants, from Citadel Securities and IMC Trading to Millennium and Optiver, are ratcheting up their presence in India's booming derivatives markets, fuelling a hiring spree and pushing exchanges to improve technology. The firms' hiring plans, being reported for the first time, come amid expectations that large domestic consumer and investor bases will help shield India from global turmoil sparked by the trade policies of U.S. President Donald Trump. The South Asian nation made up nearly 60% of global equity derivative trading volumes of 7.3 billion in April, the Futures Industry Association says, while its regulators say notional turnover of the contracts has grown 48 times since March 2018. For Western firms, the gold rush is too big to ignore, particularly after U.S. trading firm Jane Street earned $2.34 billion from its India trading strategy last year, some of the firms' executives said. "We have seen competition increasing both on the trading front, where you see more players going for the same opportunities, and on the job market as well," said Jocelyn Dentand of global high-speed trader IMC Trading. The firm plans to grow its team by more than 50% by the end of 2026 to stand at more than 150, added Dentand, the managing director of its India unit. Foreign investors turned buyers of Indian stocks in April and May, purchasing a net $2.8 billion, as they abandoned their previous selling stance from October 2024 to March 2025, prompted by high valuations and slower growth in earnings. U.S.-based Citadel Securities, a market-making firm founded by well known investor Kenneth Griffin, runs a leaner team of around 10 in India but has ramped up capital allocation to its operations, said a source familiar with its plans. "In India, we're constantly looking for talent and constantly hiring," said the source, who sought anonymity in the absence of authorisation to speak to the media and declined to give details of the plan. Hedge fund Millennium is expanding its India desk via Dubai and Singapore, said a source with direct knowledge of the matter, who also sought anonymity on the same grounds. Millennium declined to comment for the story. Citadel Securities did not respond to an email seeking comment. Netherlands-based Optiver, which launched India operations in 2024, plans to grow its team to 100 by the end of 2025, a spokesperson said, up from 70 now. "Optiver is investing ambitiously in India, with a view to expanding to 100 FTEs by year-end and scaling further in the years ahead," the spokesperson added. Amsterdam-based trading firm Da Vinci and London-based Qube Research and Technologies are also recruiting for quantitative trading roles in India, public postings for jobs show. RUSH FOR TECH, TALENT Global trading firms are also looking to expand in India by recruiting aggressively from top domestic universities and poaching from home-grown competitors. They have hired about 300 people in India in the last two years across the trading, technology, compliance, risk, and legal functions, Hong Kong-based recruiter Aquis Search estimates. "We foresee a good run for the next few years," said Annpurna Bist, its head of quant and tech. Intensifying competition has driven up salaries, with even junior traders paid more than double the figure of three years ago, said Bhautik Ambani, head of AlphaGrep Investment Management, one of India's leading quant trading firms. India's top engineering schools have become the favoured hunting grounds for talent. "We almost solely hire our traders and software engineers from Indian Institutes of Technology (IITs)," said IMC's Dentand, referring to the country's chain of prestigious engineering schools. But hiring efforts are now being widened to the universities beyond the IITs, Dentand said. The influx of global trading firms has opened up opportunities for India's two main exchanges, which are both upgrading their tech infrastructure. The National Stock Exchange of India (NSE) plans to add 2,000 co-location racks over the next two years while older stalwart the Bombay Stock Exchange (BSE) aims to scale up to 500 by the end of fiscal 2026, from none in March 2024. Such racks are servers at exchanges that cut trade execution times to microseconds. "We are a late entrant and need to provide additional value for the unfulfilled demand from high-frequency trading firms and quant firms, amongst others, for co-location racks," said BSE Chief Executive Sundararaman Ramamurthy. The exchange has spent between 4.5 billion rupees and 5 billion rupees ($52 million to $58 million) on technology in the last two years, he said. The NSE and regulator the Securities and Exchange Board of India (SEBI) did not respond to queries for the report. ($1=85.9675 rupees) (Reporting by Jayshree P Upadhyay, Jaspreet Kalra; Editing by Ira Dugal and Clarence Fernandez)
