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Category Archives: Options

Options news updates from John Lothian News.

JLN Options: In Options Land, Near-Term Signals All Clear. But Midyear In Doubt Standard

Lead Stories In Options Land, Near-Term Signals All Clear. But Midyear In Doubt By Brendan Conway, ReutersThe market dynamic has been repeated several times since the financial crisis: Stocks rise sharply, and investors’ interest in options wanes at the very moment that it would cost less to buy options as portfolio insurance.By a range of measures, the U.S. options market illustrates investors’ near-term bullishness. The Chicago Board Options Exchange Volatility Index, the “fear index,” has drifted below its historical average. That decline, which reflects the lower prices investors pay for puts and calls on the Standard & Poor’s 500-stock index,…

JLN Options: How Buy-Side Traders Are Adapting to the Volatility Standard

Lead Stories How Buy-Side Traders Are Adapting to the Volatility Advanced Trading Buy-side traders are demanding stronger trading tools to navigate the increasingly volatile markets, according to a recent TABB Group study.By Miranda Mizen, Tabb Group January 25, 2012Profound change can be rather subtle. While it is obvious that current events cause changes in the market that require adaptation by buy-side trading desks, it is not always obvious to what extent change becomes the new norm. This year, conversations during the rollercoaster markets of August with 68 buy-side traders for TABB Group’s annual buy-side equity study, “Coverage Under Fire,” suggest…

JLN Options: CBOE to Launch Trading in CBOE Emerging Markets ETF Volatility Index Options on January 31 Standard

Lead Stories CBOE to Launch Trading in CBOE Emerging Markets ETF Volatility Index Options on January 31CHICAGO, Jan. 24, 2012 /PRNewswire/ (Press Release) — The Chicago Board Options Exchange (CBOE) announced today that it will begin offering trading in options on the CBOE Emerging Markets ETF Volatility Index (VXEEM) on Tuesday, January 31. The new options contract follows the introduction of trading in CBOE Emerging Markets ETF Volatility Index security futures (futures symbol: VXEM) at CBOE Futures Exchange (CFE) on January 9, 2012. Investors can use either or both products to hedge emerging markets volatility exposure or to make direct…

JLN Options: NYSE Euronext Explores Adding Partners To Amex Joint Venture Standard

Lead Stories NYSE Euronext Explores Adding Partners To Amex Joint VentureBy Jacob Bunge Of DOW JONES NEWSWIRES NYSE Euronext (NYX) may add more equity partners to its Amex stock-options exchange, expanding a strategy that has boosted trading volume and turned the platform into the Big Board parent’s largest U.S. derivatives market. Seven banks and trading forms agreed to take a near-50% stake in NYSE Amex in 2009 in return for a steady flow of trading business that has almost doubled contract volume on the former American Stock Exchange, which NYSE acquired a year earlier. NYSE Amex has held conversations with…

JLN Options: NYSE May Appeal If Deutsche Boerse Deal Blocked Standard

Lead Stories NYSE May Appeal If Deutsche Boerse Deal BlockedBy Doug Cameron, The Wall Street JournalThe head of NYSE Euronext (NYX) said the exchange may appeal if European regulators block its planned merger with Deutsche Boerse AG (DBOEF, DB1.XE).The exchanges are lobbying fiercely to preserve the planned pact after European Union antitrust examiners last week recommended that EU commissioners block the deal, on grounds that it would create a monopoly in European listed futures and options trade.“If the deal is blocked we will consider all options, including an appeal,” NYSE Chief Executive Duncan Niederauer said in an interview with Cinco…

JLN Options: A Q&A With CBOE’s CEO Brodsky and COO Tilly Standard

Lead Stories A Q&A With CBOE’s CEO Brodsky and COO TillyBy Peter Chapman, Trader’s MagazineChicago Board Options Exchange chairman and chief executive officer Bill Brodsky and president and chief operating officer Ed Tilly broke bread with the New York City press corps in January in order to update the scribes on the exchange operator’s initiatives. Reporters learned that a quarter of CBOE’s volume came from proprietary products, specifically its index options, but over half its profits. CBOE’s year-old C2 exchange was achieving the company’s goals, the executives said, trading 228,000 contracts per day in last year’s fourth quarter, but they…

JLN Options: SEC Clears Way For NYSE, Deutsche Boerse To Merge Standard

Lead Stories SEC Clears Way For NYSE, Deutsche Boerse To Merge By Jacob Bunge Of DOW JONES NEWSWIRES The U.S. Securities and Exchange Commission on Wednesday approved the proposed merger of NYSE Euronext (NYX) and Deutsche Boerse AG (DB1.XE, DBOEF), while leaving room for the European Union to have final say on the deal. SEC officials approved a raft of rule filings by the NYSE Euronext-owned exchanges like the New York Stock Exchange and NYSE Amex, as well as the Deutsche Boerse-owned International Securities Exchange, relating to a change in ownership that would see the markets move under a new…

JLN Options: Bats Exchange claims its first listings Standard

Lead Stories Bats Exchange claims its first listings KansasCity.com Eight exchange-traded funds from iShares will be the first publicly traded listings on the Lenexa-based Bats Exchange. Bats Global Markets operates the exchange and other markets where shares of public companies, options and other securities trade. The listings are the first in Bats’ competition with the New York Stock Exchange and Nasdaq to be the home market for publicly traded securities. http://jlne.ws/z5wQ1A The Efficiency of the VIX Futures Market: A Panel Data ApproachThe Journal of Alternative Investments The empirical findings support the hypothesis that VIX futures are good predictors of spot…

JLN Options: Nasdaq looks at changing its structure Standard

Lead Stories Nasdaq looks at changing its structureBy Telis Demos in New York and Jeremy Grant in LondonThe Financial TimesNasdaq OMX’s board of directors is discussing the possibility of changing Nasdaq’s leadership structure, which could include Robert Greifeld being named chairman in addition to chief executive, people briefed on the discussions said. The discussion comes as NYSE Euronext and Deutsche Börse’s deal appears at risk of being called off due to strong opposition from antitrust regulators in Europe. It is likely to stoke anticipation that Mr Greifeld may be trying to clear a way for a potential merger to capitalise…