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Category Archives: Options

Options news updates from John Lothian News.

JLN Options: Nasdaq OMX’s BX Options Exchange to Copy Electronic Market Rules Standard

Lead Stories Nasdaq OMX’s BX Options Exchange to Copy Electronic Market Rules By Nina Mehta, BusinessweekNasdaq OMX Group Inc. (NDAQ) (NDAQ) will use rules from another electronic options market it owns to hasten the introduction of its third equity derivatives venue, the company told regulators. Nasdaq OMX BX Options will utilize trading rules from Nasdaq Options Market, the firm told the Securities and Exchange Commission in a rule filing that didn’t say how the venue will differentiate itself from other markets. The exchange, slated to start trading in late June, must win approval before it can be introduced. http://jlne.ws/IBBXBN UPDATE:…

JLN Options: CBOE holds lead as biggest U.S. options market Standard

Lead Stories CBOE holds lead as biggest U.S. options market By Ann Saphir, ReutersCBOE Holdings Inc, which runs the oldest U.S. stock-options market, handled more contracts than any other U.S. options exchange operator in April, figures from the OCC clearinghouse showed Tuesday. Some 86.6 million contracts changed hands at the Chicago Board Options Exchange during the month, more than at any of its five competitors and giving it a 27.1 percent market share, the figures on OCC’s website showed.http://jlne.ws/ITgUZx Quick View: OTC fight heads to ChicagoBy Telis Demos and Hal Weitzman in Chicago, FT.comThe selection of Chicago as the site…

JLN Options: ISE Moves Ahead With Plan For New Options Exchange Standard

Lead Stories ISE Moves Ahead With Plan For New Options ExchangeWSJ.com By Jacob Bunge Of DOW JONES NEWSWIRES The International Securities Exchange is drafting rules and legal documents as it seeks to launch the company’s second stock-options exchange by the end of 2012, according to its chief executive. A junior options market is a chief goal for the ISE as the firm has ceded trading business to rivals running multiple venues, such as CBOE Holdings Inc. (CBOE), NYSE Euronext (NYX) and Nasdaq OMX Group Inc. (NDAQ).“It is a very high priority at the ISE to get this done,” said Chief…

JLN Options: U.S. options exchanges sound alarm on new tax rules Standard

Lead Stories U.S. options exchanges sound alarm on new tax rules* Tax rules meant to crack down on dividend-tax avoidance* Exchanges, others fear new rules overreachBy Patrick Temple-West and Ann Saphir, ReutersWASHINGTON, April 26 (Reuters) – Options exchanges and other financial players worried about proposed new tax rules on U.S. dividend tax withholding for foreign investors will vent their objections at a public hearing held by the U.S. Internal Revenue Service on Friday. In January, the IRS and the Treasury Department published the proposed rules – expected to kick in on Jan. 1, 2013 – that would put withholdings for…

JLN Options: NYSE Receives Credible Cyber Threat Against Website Standard

Lead Stories NYSE Receives Credible Cyber Threat Against Website Fox Business The New York Stock Exchange has received a credible threat to disrupt its external website as part of an apparent cyber attack attempt against a number of U.S. exchanges, FOX Business has learned…In addition to NYSE, the group claims it will put “into a profound sleep” the websites of the Nasdaq Stock Exchange, BATS, the Chicago Board of Options Exchange (CBOE: 26.66, +0.28, +1.06%) and the Miami Stock Exchange.http://jlne.ws/Ic0bSj Scramble on Apple option positions By Vivanne Rodrigues and Arash Massoudi in New York, FT.comActive trading in equity options written…

JLN Options: CBOE Futures Exchange And DRW Trading Group Complete Agreement To Create Stock Index Variance Futures Standard

Lead Stories CBOE Futures Exchange And DRW Trading Group Complete Agreement To Create Stock Index Variance FuturesProduct Features Will Mirror OTC ConventionsPress ReleaseThe CBOE Futures Exchange, LLC (CFE) and DRW Trading Group have completed an agreement that will allow CFE to use DRW’s patent-pending methodology to create variance futures that, for the first time, match the quoting conventions and economic performance of over-the-counter (OTC) stock index variance swaps. CFE plans to introduce a new futures contract based on the variance of the S&P 500® (SPX) later this year, subject to regulatory approval. Variance swaps measure the difference between the expected…

JLN Options: Options market sees big earnings move for Apple Standard

Lead Stories Options market sees big earnings move for Apple(Reuters) – The wild ride in Apple shares this year could get even more interesting when the company reports quarterly results after the bell on Tuesday.Judging by trade in the options market, investors expect Apple shares to jump or fall by about 7.5 percent, a much greater swing than the average post-earnings move of about 4.25 percent in the past four quarters.Apple shares have experienced wild swings since touching an all-time high of $644 on April 10. The stock closed down 0.2 percent at $571.70 on Monday, but is up about…

JLN Options: Some volatility ETPs are ‘disaster’ Standard

Lead Stories Some volatility ETPs are ‘disaster’By Chris Flood, FT.comSome exchange-traded products linked to volatility are “a disaster”, according to the co-creator of the Vix index, the principal measure of US stock market volatility.Sandy Rattray, chief investment officer of Man Systematic Strategies, part of Man Group, the world’s second-largest hedge fund manager, said exchange-traded products that invest in volatility futures could be “catastrophically expensive” for investors. http://jlne.ws/IzBa0vTechnology Volatility Rises to Year High Versus VIX By Nikolaj Gammeltoft and Cecile Vannucci, BloombergApple (AAPL) Inc.’s slump and forecasts from Intel Corp. (INTC) and Qualcomm Inc. (QCOM) that trailed analyst estimates are driving…

JLN Options: Verizon Jumps into Low-Latency Race between New York and Chicago Standard

Lead Stories Verizon Jumps into Low-Latency Race between New York and Chicago Traders Magazine Online NewsJames ArmstrongTelecommunications giant Verizon on Wednesday officially unveiled a low-latency service linking New York and Chicago. The offering is targeted at global banks, hedge funds, market makers, pre- and post-trade service firms and money managers. The new system uses optical technology from network specialist Ciena to send signals round-trip between New York and Chicago in as little as 14.5 milliseconds. Verizon said the system is designed to be a secure, reliable high-speed path between the two cities, one of the world’s busiest financial trading routes.Jim…