← Back to Trade Talk Blog
The following is a guest post by Christopher Rodriguez, chief marketing and relationship management officer of Eris Exchange, and Geoffrey Sharp, Eris’ managing director and head of sales. Eris is a U.S. futures exchange that offers listed interest rate swap futures. Trading Technologies offers connectivity to Eris through both the TT® and X_TRADER® platforms.
Some traders were more prepared than others for the results of the U.S. presidential election in November. Higher implied volatility, changes in risk premium and increases in interest rates resulted from Donald Trump’s surprise victory. Equity markets plunged then rallied. All told, the month of November was remarkable for traders.
Heading into Thanksgiving, 10-year Treasury Note Yields reached highs not seen since the middle of 2015. The bond sell-off tapered toward month-end, but the forwards predicted a more aggressively rising rate environment. Continue Reading →
Tags: Market Access, Trade Execution
We first met Magnus Haglind when he was living in Chicago and serving as CEO of Nasdaq Futures (NFX), the U.S. energy market launched by Nasdaq in 2015. Nasdaq had announced Trading Technologies’ status as a preferred NFX vendor, and our teams were starting to work together to connect traders to the new exchange using our software.
While the collaboration between TT and Nasdaq has deepened, Magnus’ role has evolved. A native of Sweden, Magnus recently took a new position that has him overseeing Nasdaq’s global commodities business.
We spoke with Magnus as he was preparing to relocate from Chicago back to Stockholm where his position is based. Read on for insight into how he got his start, his view on technology, and what lies ahead for both NFX and Magnus.
Continue Reading →
Tags: 5 Questions / Interviews, Market Access
IDEM, the Italian Derivatives Market of Borsa Italiana, part of London Stock Exchange Group, is enjoying another strong year in terms of volume growth, making it one of the most interesting equity derivatives markets in Europe. Its flagship products—FTSE MIB index futures, mini-futures and options—are enjoying buoyant performance thanks to increasing interest from both sell-side and buy-side investors globally. Massimo Giorgini, Head of Business Development for Equity and Derivatives Markets at Borsa Italiana, took the time to talk with us about recent developments at IDEM.
TT: Let’s take it from the top. Massimo, can you talk a little bit about your line of business?
Massimo: Borsa Italiana has operated the IDEM market since November 1994, so we recently celebrated its 20th anniversary. IDEM is the leading global liquidity pool to access Italian equity derivatives, offering the full suite of Italian equity derivatives, including futures, mini-futures, options, weekly options on the FTSE MIB Index, plus the full range of Italian single stock options and futures—not only on Blue Chip symbols but also on some Mid Cap names. FTSE MIB index futures, mini-futures and options also can be bought and sold in the U.S. in accordance with the terms of the No-Action letters from the CFTC and SEC.
Continue Reading →
Tags: Market Access, Trade Execution
Possibly, but rarely
The majority of financial market participants would agree on the dogma that commodity prices can never be zero or negative. However, it is not always true in the electricity markets. While zero or negative prices aren’t especially common, they do occur. This can create real chaos in many financial calculations. For example, for an asset with a negative price, dividing by the previous price will give an undefined or misleading result if prices are zero or negative.
The electricity market price—just like a price of any other commodity—is driven by the economics of supply and demand, which in turn are determined by several external factors such as climate conditions, seasonal factors or consumption behavior. To better understand the reasons for the negative prices, one needs to look further into the mechanics of the electricity generation process.
Continue Reading →
Tags: Market Access, Trade Execution
 |
| Sweden celebrates National Day each year on June 6.* |
Somewhat unique among monarchies, instead of a family motto upon accession to the throne, the sovereign of Sweden will adopt a personal motto. This often serves as a national motto as well, and is printed on their 1 krona coins.
Upon taking the throne in 1973, the current Swedish monarch, King Carl XVI Gustaf, adopted the motto For Sweden—with the times. This motto reflected his desire for both himself and his country to constantly evolve to adapt to the modern world. When it comes to navigating the recent eurozone crisis, though, in many ways Sweden, along with the other Nordic countries, was ahead of its time.
Nordic countries were largely spared the crisis that unfolded in the eurozone over the last few years. In part, that is likely because the Nordic countries had already been through their own version a couple decades earlier, and had already made structural changes to their economies that allowed them to weather the recent storm. As the eurozone shows signs of stabilizing, the Nordic countries, and Sweden chief among them, are poised to see growth accelerate.\
Continue Reading →
Tags: Market Access, Trade Execution
