Paytm launches futures and options platform; YKOFX ready to launch precious metals futures and options within the year; Euronext suspends trading in Jan 2023 Maize futures; Are redditors behind a call option surge on VIX?
Paytm launches futures and options platform
A fully owned subsidiary of Paytm, Paytm Money, launched a futures and options platform for retailers in India. The new service charges less than 0.15 USD (or 10 INR) flat per each trade. The new service seems to be popular in large cities like Mumbai, Delhi and Kolkota. Paytm said that out of its traders, more than 50% were from the 20-30 age group.
YKOFX ready to launch precious metals futures and options within the year
YKOFX a commodities and equity trading exchange based in Yokohma, Japan announced that they are ready to take up futures and options on precious metals in 2021. While YKOFX currently trades in precious metals they are limited to spot contracts. The exchange plans to launch daily and monthly futures for gold and silver by last quarter of 2021.
Euronext suspends trading in Jan 2023 maize futures
Euronext suspended trading on maize futures expiring in Jan 2023, citing possible issues with liquidity. However contracts expiring prior to Jan 2023 are not affected.
Euronext also trades milling wheat futures which are used as an industry benchmark for pricing in European grain markets. However trading on maize futures have had lesser volumes comparatively. Euronext added grain silos for physical delivery in northern France and Belgium in an attempt to increase the appetite for maize futures that are traditionally popular only in the southwestern France.
Are redditors behind a call option surge on VIX?
A recent article published on Bloomberg.com questioned if the recent surge in a VIX ETF. ProShares Ultra VIX Short Term Futures ETF (UVXY) is due to a retail interest.
The VIX futures are designed that mathematically they lose value over time. The ETF specified consists of the first and second month futures of CBOE volatility index. A volatility index by design, goes higher when the market crashes and eventually returns to zero. A long position on the futures, unless made deliberately and with relevant risk controls, could be disastrous as the value will eventually fall.
The article also points out that unlike shares, an indexed ETF could always create more shares out by design to counter against a “squeeze”.
The VIX futures and indices are generally used by futures and options traders to hedge against market volatility.
