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Daily email newsletters from the John Lothian News staff.

Cboe Letter on Improving VIX Settlement Process; Matrix Executions’ High Touch Trading Desk for Options Standard

Lead Stories Letter from Cboe CEO Ed Tilly and President Chris Concannon regarding VIX activity Cboe Over the past 25 years, the Cboe Volatility Index (VIX) has become the leading, global indicator of market volatility for the marketplace. It could only achieve this status through the support of our Trading Permit Holders and their customers, other market participants, our clients and investors. /goo.gl/Jr95w3 ****SD: More on this from a couple of sources below, but if you want a TL;DR – Cboe is working to make the VIX settlement better but does not acknowledge any manipulation. A longer TL;DR – Cboe…

The 30 minutes that have an outsized role in US stock trading Standard

First Read Hits & Takes JLN Staff Two noteworthy items about the two firms bidding for Fidessa. ION and rival bidder SS&C Technologies both claim the Carlyle Group or affiliates as investors. Both companies have grown dramatically via acquisition. SS&C has made dozens of deals – the latest a $5.4 billion purchase of DST Systems. Privately-held ION has made nine acquisitions since 2008 and has a bid of $2.09 billion for Fidessa.~JK CBOE Chairman & CEO Ed Tilly and President Chris Concannon sent a customer letter about VIX pricing and recent erroneous claims in academic paper.~JJL Category: So I got…

It’s a Scary Time to Be Trading Wall Street’s Fear Index Standard

Observations & Insight Cybersecurity and Technology Upgrades – John Davidson, OCC JohnLothianNews.com The OCC is in the process of making what is a big decision for a systemically important financial market utility (SIFMU) – how to best upgrade a tech stack responsible for clearing millions of options and futures contracts daily. In this video from JLN’s annual series with industry leaders, OCC President and Chief Operating Officer John Davidson talks about how the OCC is weighing its cloud vendor options, addressing cybersecurity concerns and the regulatory initiatives on the road ahead. Watch the video and read the rest here »…

A Former Top Wall Street Regulator Turns to the Blockchain Standard

First Read Hits & Takes JLN Staff JLN Readers interested in the Crypto Evolved event in New York on June 27 from Viable Markets may receive a 10% discount when they register using THIS LINK  before April 30th. Limit of 50 tickets at that price.~JJL The SEC tracks the number of cyber actions it has taken since 2012. To date, it has opened 15 digital currency/ICO cases, 13 trading suspension cases, 4 hacking/insider trading cases, 4 market manipulation cases, 3 account intrusion cases and 2 customer information safeguard cases.~JK Business Insider reported “Being outside can improve memory, fight depression, and…

NASDAQ’s Longfin options tangle; Creative FX trades; Manipulation talk Standard

Lead Stories Now NASDAQ gets in a tangle Jamie Powell – Financial Times Last month we published a story on Longfin, a Nasdaq listed trade-finance company with a tenuous link to blockchain technology and hence an excessively high market capitalisation. To recap, FTSE Russell decided to add Longfin to its Russell 2000 and 3000 small-cap indexes. Index funds then bought shares for their various products. There was one problem though. /goo.gl/7p4WD7 ****SD: “Tomorrow, 26,951 of Longfin put options will expire, representing 2,695,100 shares as each options contract is for 100 shares. In other words, the rights to sell account for…

UK regulators to fine Barclays chief; Deutsche Bank’s flub; Wells Fargo $1b fine Standard

First Read Hits & Takes JLN Staff The story of my being awarded the Silver Beaver Award by the Boy Scouts was reported in the Elmhurst Patch, posted by my friend and fellow scouter John Fabry.~JJL The Magnetar Youth Investment Academy held The Night Out for Financial Literacy fundraiser last evening in Chicago. The academy has served more than 14,000 students at 70 schools in the Chicago area. Chance The Rapper spoke with Magnetar Capital’s founder and CEO Alec Litowitz. When asked what he would have invested in when he was 17 years old, Chance replied that he didn’t have…

VIX concerns; Europe vol gauge manipulation “unlikely” Standard

Lead Stories VIX Rigging Talk Erupts on Wall Street After Another Wild Swing Lu Wang, Elena Popina and Luke Kawa – Bloomberg The Cboe Volatility Index is how Wall Street measures anxiety. Lately it’s the gauge’s own plumbing that’s making people nervous. /bloom.bg/2HcVuMX ****JB: Financial Times story on same subject here. Bloomberg Daybreak has a video describing the action here. Manipulation of Europe’s stocks volatility gauge ‘very unlikely’ Reuters Any manipulation of Europe’s main gauge of stocks volatility would be “very unlikely”, France’s financial markets regulator said in a research note on Thursday, following allegations that the equivalent U.S. “fear…

New SEC broker-dealer rule proposal; Challengers to Libor; VIX-rigging? Standard

First Read Hits & Takes JLN Staff Cboe Global Markets announced the settlement of its April expiry bitcoin futures, the fourth contract settlement conducted since the product’s launch on December 10, 2017. The settlement price was $8,055.68.~SR Quote of the day: “I quite understand at the end of the day everybody evolves and changes. China was a developing market that has developed in part because they needed to — they had an economy based on export at all costs…when you have to grow at 10 percent because you have to accommodate a population moving from villages to cities — and…

VIX settlement surge; Reinventing equity collars; Melt-up elation for volatility gauges Standard

Observations & Insight The Week Thus Far – In Case You Missed It Spencer Doar – JLN MIAX plans to launch its third exchange, MIAX Emerald, in Q1 2019. Cboe announced it would begin disseminating a one year VIX calculation (VIX1Y) and that it is “exploring the development of a futures contract” on that index. Speaking of the VIX, it took a stroll south of 15 yesterday. Then this morning – settlement time – it went on a 30 minute run from 15ish to 17, again bringing up talk of manipulation. See the lead Financial Times story below about that…