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Kessler Topaz, Quinn Emanuel To Lead VIX MDL; Goodbye MANA Partners

Lead Stories

Kessler Topaz, Quinn Emanuel To Lead Volatility Index MDL
John Petrick – Law360 (SUBSCRIPTION)
An Illinois federal judge on Thursday appointed Kimberly A. Justice of Kessler Topaz Meltzer & Check LLP and Jonathan C. Bunge of Quinn Emanuel Urquhart & Sullivan LLP as lead co-counsel in multidistrict litigation over alleged Chicago Board Options Exchange’s volatility index manipulation.

Good-bye MANA Partners
Volatility Futures and Options
MANA Partners, a much-hyped trading firm founded by Manoj Narang (ex-Tradeworx) is in a total tailspin after launching trading in January 2017.

Trump asks SEC to mull half-year corporate filings vs. quarterly
U.S. President Donald Trump said on Friday he had asked the U.S. Securities and Exchange Commission to study the impact of allowing companies to file reports with the financial regulator every six months instead of every quarter.

****I wonder how severely that would impact options volumes? Bloomberg here, CNBC here and WSJ here.~SD

ECB Pricing Creates Low-Risk Payoff Potential on Sentiment Boost
Tanvir Sandhu – Bloomberg (SUBSCRIPTION)
Options markets may offer a low-risk exposure to a rebound in sentiment for pricing of European Central Bank interest-rate hikes.

Tradeweb brings RFQ trading to the options industry
Tradeweb brings RFQ trading to the options industry
Trading platform Tradeweb has announced the launch of the Tradeweb U.S. options platform for institutional customer-to-dealer trading.

****This has a bit more on yesterday’s news.


Regulation & Enforcement

SEC Returns Clearing Firm Disciplinary Case To CBOE
Dean Seal – Law360 (SUBSCRIPTION)
The U.S. Securities and Exchange Commission has set aside a disciplinary action brought by Chicago Board Options Exchange Inc. against member clearing firm ABN AMRO Clearing Chicago LLC, sending the matter back to CBOE’s board of directors for review under a different standard.

****SD: Ugh – procedural bureaucratic issues… More info in this filing.

Bombay HC?seeks CBDT reply to brokers’ petition against NSE, Sebi
The brokers’ lobby ANMI moved the court against the capital markets regulator Sebi and NSE for holding brokers responsible for collecting securities transaction tax (STT) on physical delivery of derivatives


Surviving the Season of High Volatility
Gunjan Banerji – Barron’s
Large gyrations in global markets this month could mark the start of a turbulent season. But the options market is offering opportunities for investors to prepare.
Despite generally low volumes of stock-market activity, August is known for hair-raising volatility. Some say that thin trading overall exacerbates the market action, as fewer players cause outsize moves in the market.

Speculators’ $27 bln bet against the dollar isn’t paying off
Jamie McGeever – Reuters
Hedge funds are making their biggest bet in seven years that the dollar will weaken as evidence mounts that U.S. economic momentum is slowing, thus limiting the scope for higher interest rates

Recession indicators are flashing a yellow ‘caution’ signal, Pimco says
Victor Reklaitis and Ryan Vlastelica – MarketWatch
It’s the question that some investors have been asking all year: is the market in the late stage of the economic cycle?
Pimco’s analysts say there are “ample signs of change in the wind for investors,” including trade disruptions and both rising inflation and interest rates.

Understanding the Turkish Lira Crisis
Bob Iaccino – Nadex
On Jan 2nd of this year, the USD/TRY (Turkish Lira) stood at 3.79082. As of this writing, it stands at 5.81056, having gone as high as 7.08310. Currently, the dollar has gained more than 53% against the TRY dollar this year and close to 86% on its highs. It’s important to note, however, that the dollar was ‘only” up +46% on the close of business, Aug 9th. On Aug. 10th President Trump tweeted “I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar!” and that’s when the Lira moved the additional 37% to its lows against the dollar.

Three ‘tiebreakers’ that will determine if stock market bulls or bears are right
Nigam Arora – MarketWatch
The benchmark S&P 500 Index seems to be stuck under a certain level.
I recently wrote: “This S&P 500 chart shows the market is at a critical juncture.” Since then, I have received emails and phone calls from investors amazed at how the market ran up to the line shown on the chart in that story, fell and then rose right up to the line again.

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Graduate of University of Minnesota School of Journalism and Mass Communication