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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: Banks’ Leeway on Credit Risk Narrows as Basel Tightens Rules; Oil Mystery Solved? Interest-Rate Effect Upends Usual Growth Benefit; An Inside Look at Wall Street’s Secret Client List Standard

First Impressions 2016 Exchange CEO Series: CME’s Gill Looking For Customer Efficiencies PART 2 of 2 JohnLothianNews.com With new capital requirements of banks and other institutions, John Lothian News sat down with CME Group’s CEO Phupinder Gill at the FIA Boca Conference to talk about CME’s new cleared swaptions service through its clearinghouse, and a repo futures contract. CME is now well-focused on developing products that do two things – provide tradeable contracts and also reduce the overall costs constraints on market participants. In interest rates, the exchange is expanding beyond traditional futures and options products into the so-called repo…

JLN Options: Delta and taxes; Pound’s $16 Billion of Option Trades Envisage Drop to 1980s Lows; Hawaii assigns $1.6 billion total to 4 managers for options-based strategies Standard

Observations & Insight Nothing can be certain but delta and taxes Spencer Doar – JLN As tax accounting firms spring to life and TurboTax ups its marketing, so too is the Options Clearing Corporation working on taxes. The OCC’s concern does not rest with income taxes, but rather section 871(m) of the Internal Revenue Code. The code, which is set to tax foreign entities on US equity options trades under certain conditions, could have a negative effect on the use of options overseas, an audience the options industry has worked hard to bring into US options markets. “Our concern is…

Nothing can be certain but delta and taxes Standard

As tax accounting firms spring to life and TurboTax ups its marketing, so too is the Options Clearing Corporation working on taxes. The OCC’s concern does not rest with income taxes, but rather section 871(m) of the Internal Revenue Code. The code, which is set to tax foreign entities on U.S. equity options trades under certain conditions, could have a negative effect on the use of options overseas, an audience the options industry has worked hard to bring into U.S. options markets. “Our concern is that complying with these final regulations is so complicated that firms might just decide not…

JLN Financials: Credit Suisse CEO, Blindsided by Risk Buildup, Cuts Jobs; Credit Suisse cuts show decline of the European bank trading floor; Are Credit Default Swaps Worse than You Thought? Standard

First Impressions 2016 Exchange CEO Series: CME’s Gill Looking For Customer Efficiencies PART 2 of 2 JohnLothianNews.com With new capital requirements of banks and other institutions, John Lothian News sat down with CME Group’s CEO Phupinder Gill at the FIA Boca Conference to talk about CME’s new cleared swaptions service through its clearinghouse, and a repo futures contract. CME is now well-focused on developing products that do two things – provide tradeable contracts and also reduce the overall costs constraints on market participants. In interest rates, the exchange is expanding beyond traditional futures and options products into the so-called repo…

2016 Exchange CEO Series: CME’s Gill Looking For Customer Efficiencies PART 2 of 2 Standard

With new capital requirements of banks and other institutions, John Lothian News sat down with CME Group’s CEO Phupinder Gill at the FIA Boca Conference to talk about CME’s new cleared swaptions service through its clearinghouse, and a repo futures contract. “If you look at the world and look at the situation around the globe, you’ve got South America, which has some bright spots but a growth rate that is at best uncertain,” Gill said. “You have low growth rates in the US. If you look out to Europe, where you have a lot of potential merger and acquisition activity,…

JLN Options: Flows to Volatility ETFs Becoming Deluge as S&P Rally Hedged; Cost of hedging pound soars to near 6-year highs on Brexit anxiety; How Hedging Rises for European Stocks Getting Used to Terror Standard

Lead Stories Flows to Volatility ETFs Becoming Deluge as S&P Rally Hedged Joseph Ciolli – Bloomberg The longer the rebound in the Standard & Poor’s 500 Index lasts, the more traders are piling into hedges that pay out if it comes crashing down. Take the TVIX, an exchange-traded note betting on an increase in the Chicago Board Options Exchange Volatility Index, which absorbed $160 million on Monday, the most ever for a single day and almost twice the security’s previous record. A leveraged ETF returning twice the performance of the VIX has also seen all-time inflows, even with the fear…

JLN Financials: Look at Credit, Not Currencies, to See The Impact of Central Banks; Bond investors ready to back eurozone periphery for bigger return; Esma to prioritise Mifid II amendments Standard

First Impressions In case you missed it: 2016 Exchange CEO Series: CME’s Gill Looking For Customer Efficiencies JohnLothianNews.com CME Group has been focused on global growth, just like every other major exchange. But to get there, the exchange leader believes it has to work with customers to streamline costs so it can expand. In part one of our two-part interview at the FIA Boca Conference, CME CEO Phupinder Gill said that the exchange is working on new ways to address capital efficiencies through products such as cleared swaptions, but also new clearing services that will help institutions reduce collateral. CME…

JLN Options: What Brussels attacks mean for markets; Options Guru Says VIX Looks Poised To Pop, Sees ‘Volatility Overshoot’; Why the VIX fear index is clearly the wrong price Standard

Lead Stories What Brussels attacks mean for markets Yahoo Finance The attacks in the Belgian capital on Tuesday are unlikely to have a long-term impact on markets, but they could result in new roadblocks to cross-border commerce and lend momentum to Euro sceptics, analysts told CNBC. European stocks were under pressure but had come off their lows following deadly attacks at Brussels main airport and on the city’s metro system. U.S. equities were mixed by late morning. yhoo.it/22CKtpa ***SR: Our thoughts go out to the people of Belgium and the victims and families in this horrendous attack. Options Guru Says…

JLN Financials: Shades of Plaza Accord Seen in Barrage of Stimulus After G-20; Study Finds Public Pension Promises Exceed Ability to Pay; Japan 10-Year Yield Drops to Record, Below Negative Deposit Rate Standard

First Impressions Boca’s Last Bits As the final day of the FIA Boca Conference came to an end, several themes have emerged from the event. The first is the lawyers have taken over the exchange leader panels. Gone are the days when CEOs could banter about new possibilities, replaced by boilerplate disclaimers read word for word on stage. Among the exchanges not talking are Deutsche Boerse, London Stock Exchange, Nasdaq, BATS and ISE. In a word – boring. But there is significant movement in technology solutions. As one attendee put it, the downpour of rain, which is regulation, is mostly…