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With persistent inflation and the aggressive interest rate hikes from the Federal Reserve, the stock market in 2022 experienced its most volatile year since 2009.

The S&P 500 has been on a shaky decline since January 2022, and despite a few short-lived rebounds, it was down 19.4% at the end of 2022. Intraday volatility the percentage change in share price from market open to market close averaged 1.84% in 2022, compared to its 40-year average of 1.3%.

Since volatility is often negatively correlated with equities when equity prices decline, volatility increases using a volatility index to hedge portfolios with profitable trades based on volatility assumptions is becoming an increasingly popular way for investors to make lemonade out of lemons and turn market swings into profitable trades. To make this kind of volatility trading strategy accessible to more investors, MIAX, a technology-driven leader that builds and operates regulated exchanges, is developing a portfolio of trading products based on the SPIKES Volatility Index (SPIKE).

What the SPIKES Index does differently and why that matters

MIAX collaborated with T3 Index to create products based on the SPIKES Index. The SPIKES Index is intended to provide an improved measure of equity market volatility and act as an alternative to the Chicago Board Options Exchanges Volatility Index (VIX). The SPIKES Volatility Index tracks SPY options to measure the expected 30-day volatility in the SPDR S&P 500 Exchange Traded Fund (ETF), the most actively traded ETF in the world.

By tracking SPY options rather than the SPX options, with the latter used by VIX, and by pulling pricing data from all 16 U.S. options exchanges rather than just the Chicago Board Options Exchange (Cboe), SPIKES seeks more accurate, real-time pricing data to use as a basis for its volatility measure. Its proprietary price-dragging technique for capturing live options prices also aims to offer more precise and stable index movements by using the pricing data from actual trades rather than approximating prices based on the midpoint of the bid-ask spread of the options.

These methodology features and the fact that it updates every 100 milliseconds rather than every 15 seconds are among the key reasons MIAX built its ecosystem of volatility trading products around the SPIKES Index.

SPIKES Options and Futures

While investors cannot invest directly in the SPIKES Index, MIAX offers a portfolio of products based on the index that traders can use to trade their volatility assumptions. The SPIKES options and futures offered by MIAX, turn volatility into a tradeable asset class.

Trading in penny increments since October 1, 2022, SPIKES Options and Futures are designed to be more cost-efficient by offering the potential for reduced trading costs, tighter bid/ask spreads and improved execution prices.
Investors feeling anxious about current market conditions can use SPIKES Options (SPIKE) for downside protection by buying call options that could increase in value in the event of a market decline. In futures trading, investors can hedge their positions with SPIKES Futures (SPK): when taking a long position in S&P futures, they can buy long SPIKES Futures to hedge against potential losses since the volatility index is negatively correlated with the market.

Investors, however, are not limited to hedging strategies. SPIKES Futures can also be used to trade term structure. Term structure refers to the relationship between implied volatility and time to expiration in futures contracts. If futures prices are trending up, an upward-sloping term structure suggests that volatility is currently lower than its anticipated to be in the future. If futures prices are trending down, a downward-sloping term structure suggests volatility is currently higher than its anticipated to be in the future.

For traders, then, a basic term structure strategy is to buy futures during downward slopes (when expected future volatility is lower) and sell (or short) them during upward slopes (when expected future volatility is higher).

SPIKES Volatility ETFs

The latest addition to the SPIKES ecosystem, Convexity Shares 1x SPIKES Futures ETF (SPKX) and Convexity Shares Daily 1.5x SPIKES Futures ETF (SPKY), launched on August 16, 2022.

Intended as an alternative way for traders to hedge or capitalize on volatility, the SPKX and SPKY seek to match the performance of the SPIKE Front 2 Futures Index, which tracks the returns from a daily rolling long position in the SPIKES Futures contracts traded on the Minneapolis Grain Exchange (MGEX).

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice. The information contained in this document is the proprietary information of Miami International Holdings, Inc. (MIH), however its accuracy and completeness is not expressly nor implicitly guaranteed. Past performance is not indicative of future results. The information in this document is provided for information purposes only, and is not intended to provide, and should not be relied on for financial or legal advice. The information herein is presented as is and without representations or warranties of any kind. MIH shall not be liable for loss or damage, direct, indirect or consequential, arising from any use of this information. Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies are available from your broker, by calling 1-888-OPTIONS or from The Options Clearing Corporation at www.theocc.com. No statement within this document should be construed as a recommendation to buy or sell a security or futures contract or to provide investment advice.

Image provided by Rymden on Shutterstock

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UK and France have ‘shared responsibility’ to tackle illegal migration, Emmanuel Macron says

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UK and France have 'shared responsibility' to tackle illegal migration, Emmanuel Macron says

Emmanuel Macron has said the UK and France have a “shared responsibility” to tackle the “burden” of illegal migration, as he urged co-operation between London and Paris ahead of a crunch summit later this week.

Addressing parliament in the Palace of Westminster on Tuesday, the French president said the UK-France summit would bring “cooperation and tangible results” regarding the small boats crisis in the Channel.

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King Charles III at the State Banquet for President of France Emmanuel Macron. Pic: PA
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King Charles III at the State Banquet for President of France Emmanuel Macron. Pic: PA

Mr Macron – who is the first European leader to make a state visit to the UK since Brexit – told the audience that while migrants’ “hope for a better life elsewhere is legitimate”, “we cannot allow our countries’ rules for taking in people to be flouted and criminal networks to cynically exploit the hopes of so many individuals with so little respect for human life”.

“France and the UK have a shared responsibility to address irregular migration with humanity, solidarity and fairness,” he added.

Looking ahead to the UK-France summit on Thursday, he promised the “best ever cooperation” between France and the UK “to fix today what is a burden for our two countries”.

Sir Keir Starmer will hope to reach a deal with his French counterpart on a “one in, one out” migrant returns deal at the key summit on Thursday.

King Charles also addressed the delegations at a state banquet in Windsor Castle on Tuesday evening, saying the summit would “deepen our alliance and broaden our partnerships still further”.

King Charles speaking at state banquet welcoming Macron.
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King Charles speaking at state banquet welcoming Macron.

Sitting next to President Macron, the monarch said: “Our armed forces will cooperate even more closely across the world, including to support Ukraine as we join together in leading a coalition of the willing in defence of liberty and freedom from oppression. In other words, in defence of our shared values.”

In April, British officials confirmed a pilot scheme was being considered to deport migrants who cross the English Channel in exchange for the UK accepting asylum seekers in France with legitimate claims.

The two countries have engaged in talks about a one-for-one swap, enabling undocumented asylum seekers who have reached the UK by small boat to be returned to France.

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Britain would then receive migrants from France who would have a right to be in the UK, like those who already have family settled here.

The small boats crisis is a pressing issue for the prime minister, given that more than 20,000 migrants crossed the English Channel to the UK in the first six months of this year – a rise of almost 50% on the number crossing in 2024.

France's President Emmanuel Macron speaks at the Palace of Westminster during a state visit to the UK
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President Macron greets Commons Speaker Sir Lindsay Hoyle at his address to parliament in Westminster.

Elsewhere in his speech, the French president addressed Brexit, and said the UK could not “stay on the sidelines” despite its departure from the European Union.

He said European countries had to break away from economic dependence on the US and China.

Read more:
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“Our two countries are among the oldest sovereign nations in Europe, and sovereignty means a lot to both of us, and everything I referred to was about sovereignty, deciding for ourselves, choosing our technologies, our economy, deciding our diplomacy, and deciding the content we want to share and the ideas we want to share, and the controversies we want to share.

“Even though it is not part of the European Union, the United Kingdom cannot stay on the sidelines because defence and security, competitiveness, democracy – the very core of our identity – are connected across Europe as a continent.”

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World

IDF presence in Gaza ‘only issue’ still to be resolved in push for Israel-Hamas ceasefire, Sky News understands

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IDF presence in Gaza 'only issue' still to be resolved in push for Israel-Hamas ceasefire, Sky News understands

Only one issue remains unresolved in the push to achieve a ceasefire in Gaza, according to Sky sources.

Intense negotiations are taking place in Qatar in parallel with key talks in Washington between US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu.

Two sources with direct knowledge of the negotiations have told Sky News that disagreement between Israel and Hamas remains on the status and presence of the Israel Defence Forces (IDF) inside Gaza.

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Gaza ceasefire deal in progress

The two sides have bridged significant differences on several other issues, including the process of delivering humanitarian aid and Hamas’s demand that the US guarantees to ensure Israel doesn’t unilaterally resume the war when the ceasefire expires in 60 days.

On the issue of humanitarian aid, Sky News understands that a third party that neither Hamas nor Israel has control over will be used in areas from which the IDF withdraws.

Israeli Prime Minister Benjamin Netanyahu speaks to the media, Tuesday, July 8, 2025, on Capitol Hill in Washington. (AP Photo/Jacquelyn Martin)
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Benjamin Netanyahu briefed reporters on Capitol Hill about the talks on Tuesday. Pic: AP

This means that the controversial Gaza Humanitarian Foundation (GHF) – jointly run by an American organisation and Israel – will not be able to operate anywhere where the IDF is not deployed. It will limit GHF expansion plans.

It is believed the United Nations or other recognised humanitarian organisations will adopt a greater role.

On the issue of a US guarantee to prevent Israel restarting the war, Sky News understands that a message was passed to Hamas by Dr Bishara Bahbah, a Palestinian American who has emerged as a key back channel in the negotiations.

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The message appears to have been enough to convince Hamas that President Trump will prevent Israel from restarting the conflict.

However, there is no sense from any of the developments over the course of the past day about what the future of Gaza looks like longer-term.

Final challenge is huge

The last remaining disagreement is, predictably, the trickiest to bridge.

Israel’s central war aim, beyond the return of the hostages, is the total elimination of Hamas as a military and political organisation. The withdrawal of the IDF, partial or total, could allow Hamas to regroup.

One way to overcome this would be to provide wider guarantees of clear deliverable pathways to a viable future for Palestinians.

But there is no sense from the negotiations of any longer-term commitments on this issue.

Two key blocks have been resolved over the past 24 hours but the final challenge is huge.

The conflict in Gaza erupted when Hamas attacked southern Israel in October 2023, killing around 1,200 people and taking 251 hostages, according to Israeli figures. Some 20 hostages are believed to remain alive in Gaza.

Israel has killed more than 57,000 Palestinians, according to Gaza’s Hamas-run health ministry, which does not distinguish between combatants and civilians.

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World

Trump applying ‘heavy pressure’ on Netanyahu to end war in Gaza

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Trump applying 'heavy pressure' on Netanyahu to end war in Gaza

US President Donald Trump is putting “heavy” pressure on Israeli Prime Minister Benjamin Netanyahu to end the war in Gaza, two sources close to the ceasefire negotiations have told Sky News.

One US source said: “The US pressure on Israel has begun, and tonight it will be heavy.”

The source, who is not authorised to speak publicly, was referring to the White House dinner on Monday night between Trump and Netanyahu.

A second Middle Eastern diplomatic source agreed that the American pressure on Israel would be intense.

Benjamin Netanyahu gave Donald Trump a letter he said he had sent to a Nobel Peace Prize committee commending his peace efforts
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Benjamin Netanyahu gave Donald Trump a letter saying he had nominated him for a Nobel Peace Prize. Pic: AP

Netanyahu arrived in Washington DC in the early hours of Monday morning and held meetings on Monday with Steve Witkoff, Trump’s Middle East envoy, and Marco Rubio, the secretary of state and national security adviser.

The Israeli prime minister plans to be in Washington until Thursday with meetings on Capitol Hill on Tuesday.

Trump has made clear his desire to bring the Gaza conflict to an end.

However, he has never articulated how a lasting peace, which would satisfy both the Israelis and Palestinians, could be achieved.

His varying comments about ownership of Gaza, moving Palestinians out of the territory and permanent resettlement, have presented a confusing policy.

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‘Israel has shifted towards economy of genocide’

Situation for Palestinians worse than ever

Over the coming days, we will see the extent to which Trump demands that Netanyahu accepts the current Gaza ceasefire deal, even if it falls short of Israel’s war aims – the elimination of Hamas.

The strategic objective to permanently remove Hamas seems always to have been impossible. Hamas as an entity was the extreme consequence of the Israeli occupation.

The Palestinians’ challenge has not gone away, and the situation for Palestinians now is worse than it has ever been in Gaza and also the West Bank. It is not clear how Trump plans to square that circle.

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‘Some Israeli commanders can decide to do war crimes’

Trump’s oft-repeated desire to “stop the killing” is sincere. Those close to him often emphasise this. He is also looking to cement his legacy as a peacemaker. He genuinely craves the Nobel Peace Prize.

In this context, the complexities of conflicts – in Ukraine or Gaza – are often of secondary importance to the president.

If Netanyahu can be persuaded to end the war, what would he need?

The hostages back – for sure. That would require agreement from Hamas. They would only agree to this if they have guarantees on Gaza’s future and their own future. More circles to square.

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Trump 100: We answer your questions

Was White House dinner a key moment?

The Monday night dinner could have been a key moment for the Middle East. Two powerful men in the Blue Room of the White House, deciding the direction of the region.

Will it be seen as the moment the region was remoulded? But to whose benefit?

Trump is a dealmaker with an eye on the prize. But Netanyahu is a political master; they don’t call him “the magician” for nothing.

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Trump makes decisions instinctively. He can shift position quickly and often listens to the last person in the room. Right now – that person is Netanyahu.

Gaza is one part of a jigsaw of challenges, which could become opportunities.

Diplomatic normalisation between Israel and the Arab world is a prize for Trump and could genuinely secure him the Nobel Peace Prize.

But without the Gaza piece, the jigsaw is incomplete.

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