International Council for Derivative Trading

📈 Global Derivatives Roundup — This Week’s Key Stories 1. CME Expands Crypto Suite with Micro Ether Options CME Group has launched micro ETH options amid rising Ethereum volatility ahead of potential U.S. spot ETF approvals. - 0.1 ETH contract size - Cash-settled, monthly/weekly expiries - Complements micro BTC/ETH futures Why it matters: Lower entry costs for hedging and speculation could accelerate institutional adoption of crypto derivatives. 2. ESMA Tightens Commodity Derivatives Oversight The EU regulator is moving toward stricter reporting and position limits on commodity contracts, particularly energy and agriculture. - Harmonized EU-wide position reporting - Narrower hedger exemptions - Enhanced clearinghouse stress tests Why it matters: Aligns EU and U.K. frameworks and addresses volatility in commodity markets. 3. Tokyo Stock Exchange Extends Futures Trading Hours Starting October 2025, Nikkei 225 and JGB futures will trade three hours later into the night session. - Better overlap with U.S./European markets - Supports surging foreign participation - Responds to record volume growth in Japan What to Watch: - Will CME’s micro ETH options gain traction or remain niche? - How will EU commodity traders adapt to ESMA’s mandates? - Will extended TSE hours shift global hedging flows toward Tokyo? The ICFDT provides regular insights on developments shaping global derivatives markets. Follow us for the next update.

Qube Research & Technologies, a London-based hedge fund that has rapidly grown into a major player without a U.S. presence, is set to open a new office in Houston focused on commodities trading, including physical markets. This marks QRT’s first move into the U.S., the global hub for hedge funds, as it intensifies its focus on the lucrative and volatile commodities sector. To spearhead the expansion, QRT has hired Naveen Arora, formerly co-head of U.S. power trading at Goldman Sachs. The move comes as hedge funds increasingly compete for specialist talent in natural gas and power trading, driven by rising volatility, extreme weather, and growing energy demands from AI data centers. The U.S. hedge fund market, which accounts for 81% of global industry assets and hosts over 6,800 managers, offers a deep pool of trading talent. For QRT, entering this market reflects the broader industry trend: a global hunt for elite investment professionals as firms like Millennium, Citadel, and Point72 continue to expand internationally to secure top-tier talent. https://lnkd.in/gYNGAgpx

📈 Top Derivatives Stories This Week! 🇮🏦RBI Proposes New Draft Rules for OTC Derivative Novation: The Reserve Bank of India released draft norms to overhaul how over-the-counter (OTC) derivative contracts can be novated (i.e., transferred to a third party). Key proposals include: ▪ Tripartite agreements involving all counterparties ▪ Transfers allowed only at market-based pricing ▪ Uniform documentation and mandatory reporting ▪ Consultation open until August 1, 2025 Why it matters: It’s a move to inject transparency, reduce legal ambiguity, and bring India in line with global standards, especially as OTC markets remain opaque and prone to bilateral risk. 🔍 SEBI Bars Jane Street Over Alleged Derivatives Manipulation India’s markets regulator SEBI has banned Jane Street from accessing Indian securities markets and seized ~$567 million, alleging they manipulated the Bank Nifty index using a sophisticated arbitrage across cash, futures, and options. Jane Street reportedly netted $90 million on a single January 2024 trade. Jane Street’s response: The firm denies wrongdoing, calling it standard index arbitrage, and plans to appeal. 📈UK Credit Default Swaps Surge 47% on Hedging Demand According to ISDA data, UK corporate CDS (credit default swaps) trading surged 47% to $2.3 trillion in Q1 2025. The spike is attributed to macroeconomic hedging amid geopolitical risks, especially around U.S.–Europe trade tensions. 📌 What to Watch Next RBI consultation outcome: Industry feedback will determine if novation rules are softened or further tightened. Clarity expected in Q3 2025. Jane Street’s legal appeal: A win or loss will set precedent on whether aggressive arbitrage counts as manipulation in complex derivatives ecosystems. CDS market spillover: Will rising CDS volumes in the UK expand to other regions like the EU or Asia as macro fears persist?

Looking for your next summer read? We asked our Point72 Academy and Investment Professional Development teams to recommend the books that have shaped their understanding of the markets and the world around us. From ways to value stocks to the rise of the semiconductors industry, see the full list here: https://lnkd.in/ecmKqyFS

Applications are now open globally for the 2025 Point72 Academy for Experienced Professionals! If you're looking to bring your skills and expertise to the buy-side, join our 10-month investment analyst training program to learn the fundamentals of stock analysis and work with our portfolio managers. Explore opportunities in APAC, the U.S., and UK: • Hong Kong - https://lnkd.in/eswsQirq • London - https://lnkd.in/eXv5bvef • Singapore - https://lnkd.in/ejUWuxth • Tokyo - https://lnkd.in/eyFD8G3f • United States - https://lnkd.in/eYAkAj-z

Looking for your next summer read? We asked our Point72 Academy and Investment Professional Development teams to recommend the books that have shaped their understanding of the markets and the world around us. From ways to value stocks to the rise of the semiconductors industry, see the full list here: https://lnkd.in/ecmKqyFS

We have partnered with TrendUp Finance to give the opportunity to sit the CFOA certification for free to participants in the program. For more information check out TrendUp.

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Are you an upcoming graduate looking to launch your career in investing? Applications are open for the 2026 Point72 Academy full-time program for students graduating between December 2025 and July 2026. This is your opportunity to build financial modeling skills, rotate with our investing teams, and earn an analyst seat at our firm. U.S. application: https://lnkd.in/ekA73MWn UK application: https://lnkd.in/eUEx9RSs APAC applications will open in the coming weeks—stay tuned!

Gold Hits Record High Amid Fed Independence Concerns — Derivatives Market Signals Further Cuts Gold surged to an all-time high of $3,500 per troy ounce as Donald Trump's renewed attacks on Federal Reserve Chair Jay Powell spooked markets and raised fears over the Fed’s independence. In response to Trump’s calls for immediate rate cuts and criticism of Powell’s stance on tariffs, investors fled to haven assets like gold, Treasuries, and the yen. The spike in gold prices — up 30% year-to-date with over $19bn flowing into gold-backed ETFs — reflects deepening anxiety about U.S. institutional credibility and the broader macro environment. The potential erosion of Fed independence is adding volatility to the $29tn Treasury market, seen as the bedrock of global finance. In the background, derivatives markets are pricing in at least three 25bp Fed cuts by year-end, despite the central bank having held rates steady since a large cut in September. This divergence between market expectations and official messaging highlights growing uncertainty and is likely contributing to increased options activity and positioning shifts in interest rate and gold futures. The "triple sell-off" in U.S. equities, bonds, and the dollar — alongside a firming yen and bund rally — underscores a flight to safety and suggests rising hedging demand in rates and FX derivatives. As inflation expectations remain elevated due to tariffs and geopolitical risks, the derivatives market will continue to serve as a key barometer for shifting sentiment around rate policy and risk. https://lnkd.in/gBhNP__j