Resources and Research

Creating indices of TRS transactions on the fly for index forecasting

February 13, 2023

The US equity swap data (Total Return Swaps, or TRS) on Deriv1.com are producing multiple opportunities for analysis. One of them is the creation of NASDAQ 100 and S&P 500 long and short indices. We’ve set up a model where we run the numbers right when the TRS data go live, around 9AM. We’ve learned…

Tracking correlations between Total Return Swaps trades and cash equity price movements

January 26, 2023

Finadium Editorial Team

In preparing for a relaunch of our Total Return Swaps (TRS) product, we’ve been doing more analysis on what the data say. We’re starting to see some correlations between TRS transactions and later equity stock prices. Buyer beware however: not every great leveraged trading idea comes to fruition. In July 2022 we looked at Digital…

VICI volume spiked on January 13, 2023 – TRS added another 30% of short liquidity

January 20, 2023

Finadium Editorial Team

VICI Properties Inc. (VICI) has a daily average trading volume of 6.4 million shares. At around $32.69/share, that’s an average volume of $210 million. On Friday, January 13, 2023 that volume went to $691 million. The reason was a corporate action: VICI Properties Inc. Announces Public Offering of Common Stock. Pretty straight-forward. But Total Return…

Chanos & Co. plans to short digital REITs – how will they do it?

July 5, 2022

Finadium Editorial Team

Famed short seller Jim Chanos, now running Chanos & Company (the rebranded Kynikos Associates), said in the Financial Times that the firm was raising a fund to short REITs that focus on digital data centers: “‘This is our big short right now. The story is that although the cloud is growing, the cloud is their…

TRS webinar: capacity, compliance and clearing are major themes

December 13, 2021

Finadium Editorial Team

A Finadium webinar on Total Return Swaps (TRS) in December 2021 showed what market experts expect for 2022, following the exceptional multi-billion dollar fallout of Archegos. Here’s what we learned. The size of losses related to Archegos, at some $10 billion across key banks, some of which are long-term players in prime brokerage, have not…

What we learned on TRS from the FT Comments section

April 8, 2021

Finadium Editorial Team

It is to everyone’s benefit when capital markets professionals show how the markets really work, and sometimes they are the only people who actually know. In a recent Financial Times article on Total Return Swaps, the comments section revealed valuable inner mechanics. During our 15 minutes of media fame last week, the FT’s Robert Armstrong…