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Author Archives: Spencer Doar

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Graduate of University of Minnesota School of Journalism and Mass Communication

JLN Financials: Now It’s Three – Ecuador Bank Hacked via Swift; ‘Brexit,’ a Feel-Good Vote That Could Sink Britain’s Economy; US growth is a shadow of past glories, so no need to hike rates Standard

First Impressions Feeling Sentimental: A New CME Group And Purdue University Indicator Shows Farm SentimentSpencer Doar – JLN The University of Michigan developed its consumer sentiment index in the late 1940s and now it is a widely followed leading indicator of consumer behavior. Purdue University and CME Group hope to have come up with a similar indicator with the release of their Ag Economy Barometer. “We felt that there was an information void with respect to sentiment of producers in the agricultural sector and that coincided with what CME was looking for — they wanted something that matched up with…

JLN Options: The United Kingdom has Options….and So Do You; It’s All About Stock Swings, With VIX at Two-Month High; Fed April minutes raised rate hike probability, put dollar rise in focus Standard

Observations & Insight   Did You Know? As CBOE Chairman Bill Brodsky announces his resignation, here are some interesting facts worth noting in today’s “Did You Know?” From Brodsky’s MarketsWiki bio page: Technically, Brodsky served as an executive in almost all of the leading U.S. exchanges (except Nasdaq). Most know that he was CEO of CME Group before leading CBOE for 16 years, but before that he served as an executive VP at Amex, which later became part of NYSE, which was, of course, acquired by ICE. So he can trace his roots back to all. He began his career…

Feeling Sentimental: A New CME Group And Purdue University Indicator Shows Farm Sentiment Standard

The University of Michigan developed its consumer sentiment index in the late 1940s and now it is a widely followed leading indicator of consumer behavior. Purdue University and CME Group hope to have come up with a similar indicator with the release of their Ag Economy Barometer. “We felt that there was an information void with respect to sentiment of producers in the agricultural sector and that coincided with what CME was looking for — they wanted something that matched up with what takes place in the macro economy,” said Jim Mintert, Purdue’s director of the Center for Commercial Agriculture…

JLN Financials: Five banks sued in U.S. for rigging $9 trillion agency bond market; LPC: U.S. banks grapple with negative Libor; Lack of trading activity set to hurt bank revenues in Q2 Standard

First Impressions Yesterday’s Top Three, Really FourNumero uno from yesterday was the WSJ’s New Evidence That Traders Front Run Important Economic Data. (There is a solid piece from the Financial Times on the FCA’s investigations into “illicit trading” under Regulation today. Not that I’m trying to skew tomorrow’s top three…) A bit of an oddity: we have a three-way tie for second place. Bloomberg’s EU, U.S. Race to Spare Banks $5 Billion Clearing Capital Hit is a multi-day winner after first running Tuesday and making Wednesday’s Top Three. It is no surprise that a Fed story made the list —…

JLN Options: CBOE veteran William Brodsky to step down; Investors Are Heeding the Fed’s Message on Possible June Rate Increase; Can Brazil Win Volatility Gold? Standard

Lead Stories CBOE veteran William Brodsky to step downAlice Attwood – Futures & Options WorldCBOE Holdings’ executive chairman of the board and former chief executive officer William Brodsky has said Thursday that he plans to step down from the US exchange group next year. Market veteran Brodsky was previously chairman and chief executive officer, positions he stepped down from in 2013 when he became executive chairman of the board. Brodsky confirmed his departure at the US exchange group’s 2016 annual meeting of stockholders Thursday, stating that he does not intend to be a director candidate in 2017, and that this…

JLN Financials: Fed Is Seriously Considering Raising Interest Rates in June, Meeting Minutes Say; New Evidence That Traders Front Run Important Economic Data; Bank of England chief economist – Nobody understands pensions, including me Standard

First Impressions Yesterday’s Top ThreeLet’s switch things up and start with the runners up. Great migration to send bank revenues further south nailed down the third spot. The “R” word gathered enough attention for Recession fears are running rampant on Wall Street to land in second. And, drum roll please, EU, U.S. Race to Spare Banks $5 Billion Clearing Capital Hit got the gold. Quote of the Day “I consider myself moderately financially literate – yet I confess to not being able to make the remotest sense of pensions. Conversations with countless experts and independent financial advisers have confirmed for…

JLN Options: US clearer OCC faces credit rating cut from S&P Global; A New Trading Floor in 2016? Options Market Turns to Old Tactic; Big VIX Spreads, the Fed, and the Flattening Yield Curve Standard

Lead Stories US clearer OCC faces credit rating cut from S&P GlobalPhilip Stafford – Financial TimesThe Options Clearing Corp faces a cut to its credit rating after S&P Global Ratings warned the US clearing house’s cover to withstand a default was weaker than those of its US and European peers. The credit rating agency said late on Tuesday the concern was sufficient to put the Chicago-based clearer’s double A plus rating on “CreditWatch with negative implications”. OCC is the world’s largest equity options clearing house, processing more than 3.6bn contracts a year for 19 trading venues. The change is usually…

JLN Financials: EU, U.S. Race to Spare Banks $5 Billion Clearing Capital Hit; As Brexit vote looms, U.S. banks review their European commitments; Great migration to send bank revenues further south Standard

First Impressions The Top ThreeThe most read story yesterday was Donald Trump’s Week of Playing with Financial Fire. Playing with fire always gets clicks, but when the Donald is involved, it gets mega-clicks. Deutsche Bank’s Woes May Be ‘Insurmountable,’ Berenberg Says came in second — just about the only metric where Deutsche Bank currently comes in second I’d imagine. Finally, Carl Icahn’s fund moves to large bearish stance: Barron’s nabbed third.   Quote of the Day “In 1998, Wall Street bailed out a hedge fund. In 2008 the Fed bailed out Wall Street. What’s going to happen in 2018? It’s…

JLN Options: Placid VIX Tells Little of Volatility Story as Futures Climb; Hedge funds turn cautious on crude just as Goldman gets less bearish; Citadel Buys Assets From Citigroup Speed-Trading Pioneer ATD Standard

Observations & Insight Room For One More: MIAX Due to Open 15th US Options ExchangeJim Kharouf – JLN MIAX options, the youngest exchange group in the US options industry, announced plans to launch MIAX Pearl in the fourth quarter. The new exchange, introduced at the Options Industry Conference in Palos Verdes, Calif., is pending regulatory approval. MIAX Pearl will offer a maker-taker pricing model. While much is made of the proliferation of US options markets and possible oversaturation of exchanges, MIAX executives believe they need to create the new market to continue their growth. Read the rest of the story…