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Author Archives: Jeff Bergstrom

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Bergstrom is chief information officer of John J. Lothian & Co. He edits MarketsWiki and JLN Options.

JLN Options: Vix backwardation shows fretting is short term Standard

LEAD STORIES Vix backwardation shows fretting is short term Jamie Chisholm – Financial Times For all the teeth-gnashing over a possible US technical default, the S&P 500 by Wednesday’s open was down only about 4 per cent from its record high. Most analysts agree that if investors really thought the world’s biggest economy was about to bilk on its commitments then stocks would have sold off more. http://jlne.ws/1bcqt1w VIXplosion Henry Schwartz – The Street Fear is back — big time. CBOE Volatility Index (VIX) was up .93 to 20.34 Tuesday to recapture the 20 handle for the first time in…

JLN Options: Rational Behavior from the CBOE Volatility Index (VIX) Standard

LEAD STORIES Rational Behavior from the CBOE Volatility Index (VIX)   Adam Warner – Schaeffer’s Investment Research Well, I guess they’re going to drag this debt limit battle out until the bitter end. It has left our markets both frozen and volatile at the same time. We’re seeing gaps and reversals and midday swings like crazy, but net-net … we’re moving nowhere. The S&P 500 Index (SPX) was sitting close to here in mid May, again in mid-July, early August, and finally early September. http://jlne.ws/1csA3B7 A Tale of Two Volatility Curves Russell Rhoads – CBOE VIX and VIX Futures reacted as…

JLN Options: The Wisdom of Unseen Bulls Standard

OBSERVATIONS & INSIGHT Jeffrey Maron of MarkitSERV Talks Plumbing: How SEF Reporting Infrastructure Works MarketsWiki.tv With the official launch of swap execution facilities (SEFs) on October 2, a new trading structure for OTC products is underway. Today, with almost 20 SEFs operational or in the works, the question for many market participants is how will all the trading and reporting work? JLN editor-in-chief Jim Kharouf sat down with Jeffrey Maron, managing director, product management for MarkitSERV, to talk about the reporting aspect of these swaps transactions. Watch the video » LEAD STORIES The Wisdom of Unseen Bulls  Steven M. Sears…

JLN Options: Debt ceiling worries spill into U.S. options market Standard

LEAD STORIES Debt ceiling worries spill into U.S. options market Doris Frankel and Angela Moon – Reuters With the U.S. government in Washington partially shut down, some options investors are starting to pay more for protection against market turmoil on worries that the current budget stalemate could lead to something more catastrophic – a default. http://jlne.ws/19nw4EI **Don’t look at me.  I didn’t vote for them. -JB VIX Doomsday Scenarios Ophir Gottlieb – The Options Insider If you want to get the real pulse of the market, you can look at the VIX, but it’s the volatillity of the VIX that…

JLN Options: Stock Market Volatility Wakes Up, More Ahead? Standard

COMMENTARY & INSIGHT ISDA’s Robert Pickel Discusses the Future of Financial Benchmarks (Part 2) MarketsWiki.tv Robert Pickel is the CEO of the International Swaps and Derivatives Association (ISDA). Since joining ISDA in 1997, Pickel has worked to promote and advocate for OTC market participants and work with international regulatory bodies to harmonize regulation across jurisdictions. Pickel spoke with John Lothian News editor-at-large Doug Ashburn about the future of LIBOR and other financial benchmarks, possible alternatives to LIBOR, and how ISDA will work with regulators to smooth out and harmonize benchmarking standards. Watch Part 2 »  |  Watch Part 1» LEAD…

JLN Options: VIX Rises as Market Girds for U.S. Government Shutdown Standard

LEAD STORIES VIX Rises as Market Girds for U.S. Government Shutdown Kaitlyn Kiernan – The Wall Street JournalThe stock market’s so-called fear gauge rose Monday to its highest level in a month — but remained historically low — as traders and investors girded for an expected midnight shutdown of the U.S. government.http://jlne.ws/19cI7Vt Fearless: Hedges, Volatility Bets’ Strong Monday Fizzles OutBrendan Conway – Barron’sDebt ceiling impasse? Government shutdown? Whatever. That’s more or less the reaction of stock and ETF prices Monday afternoon. What started as a mid-sized selloff has become a small one. iShares Russell 2000 Index Fund (IWM) event crept into…

JLN Options: OCC Plan May Cut Capital Costs for Europe Options Traders Standard

LEAD STORIES OCC Plan May Cut Capital Costs for Europe Options TradersNandini Sukumar – BloombergOptions Clearing Corp., the Chicago-based clearinghouse for U.S. stock options, plans to register in Europe to help lower capital requirements for firms based there who want to trade American equity derivatives.http://jlne.ws/1bMKWh4 Nifty options crash 90% in ‘freak’ trade [India]The Economic TimesYet another freak trade was reported on Thursday on the National Stock Exchange (NSE), this time in the options segment.The ‘put’ option premium for Nifty strike price of 6,000 crashed by 98% to Rs 1.30 from Rs 180.http://jlne.ws/15zu2Lv Fear, The Fed, And The Erratic Behavior Of…

JLN Options: Study Finds European Demand for U.S. Options Remains Strong Standard

LEAD STORIES Study Finds European Demand for U.S. Options Remains StrongPress Release (OIC)The Options Industry Council (OIC) today presented the results of the study, “European Interest in U.S. Options: Factors Driving Renewed Demand,” conducted by Tabb Group and commissioned by OIC. The study findings show a sustained interest in the use of U.S. options by European investors driven by factors including the depth of liquidity, strength and accessibility of U.S. options markets in the current regulatory climate.http://jlne.ws/16MxiU6 Derivatives Pushout Bill Set to Get U.S. House Vote Next WeekCheyenne Hopkins & Silla Brush – BloombergThe U.S. House plans to vote next…