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Author Archives: Spencer Doar

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Graduate of University of Minnesota School of Journalism and Mass Communication

JLN Options: Platts looks to protect Brent benchmark; Why We’re Vulnerable to Even More Volatility; Spot FX Trading Back in Style at Thomson Reuters as Volumes Rise 35.2% in January Standard

Lead Stories Platts looks to protect Brent benchmark Financial Times International Petroleum Week has kicked off in London with moves by Platts, the price reporting agency, to protect the Brent benchmark from dwindling North Sea production. Dated Brent is the global oil marker used by traders and companies to price around two thirds of the world’s crude. It also underpins billions of dollars of trading in futures, options and other derivatives, writes Neil Hume, Commodities Editor. However, production of the four physical streams that underpin the benchmark – Brent, Forties, Oseberg and Ekofisk – is falling. goo.gl/sibmhz ****SD: In other…

JLN Financials: Oil market spiral threatens to prick global debt bubble, warns BIS; Government bond yields send recession signal; Why European Banks Keep Getting Clobbered Standard

First Impressions Utility Player: FIS’ John Avery Sees the Derivatives Utility as a Driver of Innovation JohnLothianNews.com In June of 2015, SunGard, now part of FIS Global, launched its post-trade derivatives utility, which aims to standardize back and middle office operations and technology, with Barclays as its first customer. According to FIS’ John Avery, it is not about commoditization so much as specialization. In other words, banks and futures commission merchants should concentrate on differentiation through service, cost, and other customer touch points, and leave standardized, replicated functions in the hands of a vendor. This will allow the bank or…

JLN Options: Thomson Reuters Swap Execution Facility Volumes Grow; When Risk Doesn’t Lead To Return; The Trading Volumes of January 2016 – A Rough Start Standard

Lead Stories Thomson Reuters Swap Execution Facility Volumes Grow Press Release Data from analytics and research firm Clarus Financial Technology shows that Thomson Reuters SEF (Swap Execution Facility) leads trading volumes in the FX dealer-to-client market segment in Q4 2015, with 55 percent of trading flow. This comes as non-deliverable forwards (NDF) volumes on the Thomson Reuters SEF have grown by 322 percent and FX options volumes by over 2000 percent in the 24 months to year-end 2015. jlne.ws/23NVJAu ****SD: FX options volume grew by over 2000 percent?!? Well good golly that’s monstrous. Unless they had, like, volume of 100…

JLN Financials: The Global Economy’s New Abnormal; Bond Markets Are Underestimating the Fed, Goldman and Pimco Warn; Oil Rout Threatens Vicious Cycle for Economy Standard

First Impressions Bit & Pieces Doug Ashburn – JLN The FIA just announced that former Secretary of State Condoleezza Rice will be the keynote speaker at the Wednesday lunch at FIA Boca in March. She plans to discuss a number of issues at the top of our agenda in the derivatives world – global economic uncertainty, cybersecurity and geopolitics. Oh, yeah, and there is an election coming up, about which she may have something to say. The conference takes place March 15-18, and details can be found HERE. As in prior years, John Lothian News will be there in full…

JLN Options: How South Korea is hurting European shares and the HK dollar; Contrarian hedge funds earn keep – momentum mutual funds, not so much; Oil options show traders primed for a plunge Standard

Observations & Insight Bit & Pieces Doug Ashburn – JLN The FIA just announced that former Secretary of State Condoleezza Rice will be the keynote speaker at the Wednesday lunch at FIA Boca in March. She plans to discuss a number of issues at the top of our agenda in the derivatives world – global economic uncertainty, cybersecurity and geopolitics. Oh, yeah, and there is an election coming up, about which she may have something to say. The conference takes place March 15-18, and details can be found HERE. As in prior years, John Lothian News will be there in…

JLN Options: Hong Kong Property Stock Gloom Seen Deepening in Options Market; Yuan Options Most Bearish in Asia as Traders Ready to Fight PBOC; Bank rout – exposure to commodity derivatives stirs fear Standard

Observations & Insight UPS Currency Hedges Largely Shield Profit as U.S. Imports Surge Tatyana Shumsky – WSJ A currency hedging program largely shielded United Parcel Service Inc. profit from the impact of a rising U.S. dollar, allowing the delivery company to benefit from a surge in U.S. imports, finance chief Richard Peretz told investors and analysts on the company’s fourth-quarter earnings call on Tuesday. Last year’s record-setting rally pushed the dollar to multi-year highs against the currencies of major U.S. trading partners including the euro-bloc, Canada and Australia, reducing the value of profits companies earned in those currencies when they…

JLN Financials: Risk of US recession back on the agenda for markets; Fixed Income – Is It or Isn’t It Broken?; Toxic Loans Around the World Weigh on Global Growth Standard

First Impressions Nonbank Runs – A Flight of the Fancy Doug Ashburn – JLN “Potter’s not selling; Potter’s buying. Why? Because we’re panicking and he’s not!” – George Bailey We all remember the scene in “It’s a Wonderful Life” when James Stewart (as George Bailey) tries to stave off a run by nervous depositors at his Bailey Bros. Building and Loan while, across town, financier Mr. Potter looks to swoop in at fire sale prices. These days, according to a panel of economists at Monday’s CME Group-MSRI Prize in Innovative Quantitative Applications seminar, it may well be the Mr. Potters…

JLN Financials: Top US financial groups hold secret summits on long-termism; Fees Outweigh Yields in Hunt for Safety; The End of the New Normal? Standard

First Impressions Nonbank Runs – A Flight of the Fancy Doug Ashburn – JLN “Potter’s not selling; Potter’s buying. Why? Because we’re panicking and he’s not!” – George Bailey We all remember the scene in “It’s a Wonderful Life” when James Stewart (as George Bailey) tries to stave off a run by nervous depositors at his Bailey Bros. Building and Loan while, across town, financier Mr. Potter looks to swoop in at fire sale prices. These days, according to a panel of economists at Monday’s CME Group-MSRI Prize in Innovative Quantitative Applications seminar, it may well be the Mr. Potters…

JLN Options: OCC Announces Total Cleared Contract Volume Up Four Percent in January; The SEC’s Derivatives Proposal; Why there will be so much volatility this reporting season Standard

Observations & Insight OCC Announces Total Cleared Contract Volume Up Four Percent in January Press Release OCC, the world’s largest equity derivatives clearing organization, announced today total cleared contract volume for the month of January was up four percent from January 2015 with 371,870,087 contracts, marking the third highest January on record. Average daily volume at OCC was up nine percent from January 2015 with 19,572,110 contracts. OCC’s stock loan program reported strong volume numbers in January with year-to-date activity up 29 percent. goo.gl/7BSuPD ****SD: Updated market share statistics can be found under the “Exchanges” section. The top two Januarys…