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Equity Derivatives monthly update

August 2020

August update featuring buy-side webinar

Michael Pollard, Portfolio Manager from Perennial recently joined me to talk about his views on how traditional portfolio construction may be in trouble, detailing how derivatives can be used as a risk mitigation strategy. Watch our latest interview here: 

It’s hard to believe it’s been nearly 6 months working from home, 2020 has been quite the year. The uncertainty continues…. 

August 2020

  • August Equity Derivative volumes were down compared to PCP. The main driver being August 2019 volatility vs the lack of market movement this year.
  • Large trading volumes were seen last year in what was a wild August 2019, primarily driven by concerns around recession signals and an escalation in US-China trade tensions.
  • VIX spiked significantly in 2019 (peak of 39 compared to 20 this month) resulting in record (non-roll) SPI activity compared to fairly flat markets this year and normal trading volumes.

'Nissan' (S&P/ASX Gross Total Return Index Future) 

  • The ‘Nissan’ saw increased trading activity in August with the highest ever volume traded, 13,556 contracts (up over 4,000 contracts from the previous high in September 2019).
  • Open Interest broke $1billion in notional value held and Interest continues to grow. 

FlexClear™ update

We currently have 7 institutional Clearers that are FlexClear ready, don’t hesitate to contact us for that list or questions you may have in regards to the anonymity, flexibility of strike and expiry date benefits FlexClear can offer.