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Author Archives: Sarah Rudolph

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Rudolph is managing editor of John Lothian News (JLN).

Two Sigma to acquire Interactive Brokers’ US options arm; Comey’s Firing Is a Crisis of American Rule of Law; Cinnober to acquire market surveillance firm Ancoa Standard

First Read Bits & Pieces By John J. Lothian Four JLN team members are out in sunny Arizona for the Options Industry Conference, which gets underway officially today. Jim Kharouf, Spencer Doar, Jeff Bergstrom and Patrick Lothian are covering the conference for JLN and will be conducting interviews, including with option exchange leaders. Our coverage so far has included a two-part preview interview with OCC Executive Chairman and CEO Craig Donohue. The can be seen here and here Across the pond, Patrick Thornton-Smith has left Duco and the City and has signed on as a non-executive director with Cult Wines…

Cloudy With a Chance of Data Standard

Adam Honoré, the founder and CEO of MarketsTech, is fond of making predictions and then seeing how many of them have come true. Back in 2015, he made some predictions about tech trends in the markets. With some he was right on; others less so. But, he said, when he predicts something he hopes will happen, he tries to make it happen. Speaking at Barchart’s FinTech Exchange Chicago conference in April, Honoré said one prediction that he did “fairly well” on was that 100 percent of research and alpha discovery would be done from the cloud. And despite the fact…

More Fragmentation, Fewer Market Makers Seen in Options Mart; Wall Street’s VIX ‘fear index’ falls to lowest level since 1993; Citi Warns Of Volatility Surge As Its Macro Risk Index Crashes Near Record Lows Standard

Lead Stories More Fragmentation, Fewer Market Makers Seen in Options Mart John D’Antona Jr. – Traders Magazine Online News, May 9, 2017 There’s more going on in the options market than meets the eye. If one measured the activity in the options market in terms of volume, then it would seem the equity derivative markets is quiet and poised for little to no volume growth this year. But this is simply not the case when one looks past volume and focuses on more structural changes, according to Jason Lichten, Director, Equity and Listed Derivatives Trading Strategies at Wolverine Execution Services….

Bats targets NYSE and Nasdaq end-of-day volume with new offering; ICE turns to atomic clock for time-stamping trades; trueEX files lawsuit against Markit Standard

First Read Options Industry Conference Preview Part 2: OCC’s Craig Donohue on Gina McFadden and Changes at the Top of OCC JohnLothianNews.com As the 35th Options Industry Conference gets underway, OCC Chairman and CEO Craig Donohue spoke with John Lothian News about everything from the industry’s first woman to be awarded the Joseph Sullivan Award to executive changes at the clearinghouse. Read the rest and watch the video » ++++ Anonymous warns world to ‘prepare’ for World War 3 Chris Perez – NY Post The infamous hacktivist group Anonymous has released a chilling new video — urging people across the…

Traders Are Fleeing the Options Market; Wall Street frets as capital markets trading activity trails off; There’s a new front in the brutal battle between America’s stock exchanges Standard

First Read Sad News The father of Doug Ashburn, our former colleague, passed away yesterday morning from a sudden heart attack. Doug is now at T3 Custom, a custom publishing firm. Any well wishes or condolences can be sent to him at dashburn@t3custom.com. ***** On behalf of the entire JLN team, our condolences to Doug and Nancy Ashburn and their families on the passing of Doug’s father. We will keep them in our thoughts and prayers as they deal with this sad time. ++++ Options Industry Conference Preview Part 1: Is Regulation Damaging the Options Space? JohnLothianNews.com The cost of…

‘50 Cent’ trading mystery focuses on $20bn London fund; Traders Vote Macron as Le Pen Vows to Wipe the Smiles Off Their Faces; Trading volatility? Good luck catching that sharp knife Standard

Observations & Insight 21 questions about 50 cent Joe Rennison and Christian Pfrang – Financial Times A corner of Wall Street has been gripped by the unknown identity of a trader that has been buying up Vix call options priced at 50 cents each, swelling to account for nearly 10 per cent of the listed market. The FT has now reported that bankers with knowledge of the trades say the so-called “50 Cent” – a reference to the American rapper known for his breakthrough album Get Rich or Die Tryin’ – is the well-heeled, London fund called Ruffer, which even…

Options Signal Pragmatism May Trump ‘America First’; Global volatility At Odds As US VIX Nears A Century Old Low; FinTech firms reduce trading time to 120 nanoseconds Standard

Observations & Insight FinTech Exchange: Clay on Innovating During CBOE’s “Middle Age” JohnLothianNews.com Albert Einstein published his theory of general relativity when he was 36. Vincent van Gogh painted Starry Night when he was 36, and Mozart wrote 626 works before dying one month before turning 36. The CBOE turned 44 in April. In that context, Catherine Clay, CBOE’s vice president of integration strategy and operations, addressed how a company that has reached middle age continues to reinvent itself. Read the rest and watch the video » Lead Stories Options Signal Pragmatism May Trump ‘America First’ Myron Scholes and Ash…

GreenKey CEO Focused on Using the Cloud for Next-Gen Voice Broking Data Standard

For years people have been predicting the demise of voice broking, but to a great extent what has happened is smaller voice broker desks are doing the same amount of work. This calls for more efficiency and a creative use of technology, according to Nader Shwayhat, the CEO of Green Key Technologies. Since the company began, GreenKey has focused on combining voice and data, and in 2017 they plan to start extracting data within voice conversations and integrating it into customers’ screens. For the most part, Shwayhat said, only about 10 percent of the information from voice conversations ever makes…

Paxos using blockchain to fix problems in capital intensive businesses Standard

Charles Cascarilla, CEO of the fintech company Paxos, says the current way of dealing with back and middle office post-trade processes is too manpower-intensive and is hindering businesses. He believes blockchain is the solution to some of the problems affecting capital-intensive businesses. Since the financial crisis, exchanges have eliminated 10 percent of costs out of the front office but only five percent out of the back and middle office, because firms are using old technology, Cascarilla said. Enter blockchain, a distributed ledger that lets everyone use a shared books and records system, getting rid of the need for different firms…