Suggestions
Matthew Koren
Equity & Index Derivatives at Eurex
Matthew Koren is a seasoned professional with a strong educational background in Industrial and Labor Relations, Economics, and Real Estate from Cornell University.
He has gained valuable experience in sales trading within organizations like Exane, Forte Securities LLC, Jefferies, and Citi, focusing on Delta One, ETF Synthetics, and Index Sales Trading.
In addition to his corporate roles, Matthew Koren has also demonstrated his entrepreneurial skills as the Founder and Chairman of The Bottle Foundation.
Highlights
Where’s the transatlantic market risk this Presidential election cycle? The graph below is the VIX - #VSTOXX October futures spread for the last three US Presidential election years. The 2016 race (Trump v Clinton) consistently priced V2X at a considerable premium to VIX (tariffs are coming!). The 2020 race (Trump v Biden) was flipped and volatile as we moved through the dark days of Covid, with VIX averaging a ~4 pt premium through the fall. Yet, 2024 is currently pricing in almost zero risk tilt towards either region, with both futures trading just shy of 18.
Are "America First" campaign threats just not on the ballot this year? Perhaps vol market structure has changed? Maybe it's just that neither candidate threw their first big punch at the EU yet, but given the political climate in the US and the propensity for some to storm capitals, the pricing just seems ... "weird."
VSTOXX markets will get deeper, tighter, and more liquid on September 1st on the back of new liquidity schemes, just in time for election season. Reach out if you have any questions on how to access European vol markets (VSTOXX, Euro Stoxx, DAX, STOXX 600, single stocks, etc) as we head into what surely will be a volatile fall.
#EUREX #VOLATILITY #V2X #SX5E #MARKETS #TRADING #OPTIONS #EUROPE #STOXX #TRUMP #HARRIS #SPX #ELECTIONS #VIX
Lots of VIX this, VIX that this past week, but how’s VIX’s cousin across the pond faring through this year's bouts of volatility? While VIX options volumes (though month end) are up 7% year over year, #VSTOXX options volumes are up 35%. VIX may be beloved for its deep liquidity, but it's far from a perfect hedge for European vol.
More on this week’s trading activity in the link, complete with a snapshot of very funky looking term structure.
#VOLATILITY #V2X #SX5E #MARKETS #TRADING #OPTIONS #EUROPE #FRANCE #STOXX #GERMANY #DERIVATIVES #YEN #JPY #SPX #VIX
