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Category Archives: Options

Options news updates from John Lothian News.

JLN Options: OptionsXpress cases put CBOE under SEC microscope Standard

Lead Stories OptionsXpress cases put CBOE under SEC microscope Crain’s Chicago Business By Lynne Marek (Crain’s) — Two cases that the U.S. Securities and Exchange Commission brought against OptionsXpress this week are at the root of the federal agency’s investigation of CBOE Holdings Inc., according to unnamed sources involved in situation. CBOE Holdings, parent to the Chicago Board Options Exchange, disclosed earlier this year that the SEC has been investigating the company’s “compliance with its obligations as a self-regulatory organization under the federal securities laws.”The agency has been reviewing whether CBOE officials had improper contact with OptionXpress while that firm…

JLN Options: Commentary: Duelling Proposals for Mini Options by ISE and NYSE Arca Standard

Duelling proposals for mini options by ISE and NYSE Arca Last week in the JLN Options newsletter and the John Lothian Newsletter, we broke the announcement that NYSE Arca had filed a proposal with the SEC to offer mini options. The International Securities Exchange (ISE) has also filed a competing proposal to offer mini options. The two proposals differ in substantial ways. For one, ISE and Arca list slightly different underlying stocks for inclusion in the mini options contracts. ISE is proposing mini options on: Apple, Inc., (AAPL), SPDR Gold Trust (GLD), Google, Inc. (GOOG), Amazon, Inc. (AMZN), International Business…

JLN Options: CFTC Votes to Treat Commodity Options the Same as Other Swaps Standard

Lead Stories CFTC Votes to Treat Commodity Options the Same as Other Swaps By Steven Sloan, Bloomberg The U.S. Commodity Futures Trading Commission adopted rules today that will treat commodity options the same as all other swaps. In a 5-0 vote, the five-member commission removed regulations that for more than a decade have treated agricultural swaps and commodity options differently than other transactions in the swaps market. Those products will now be subject to the same rules as interest rate, credit and other types of swaps.The rule takes effect 60 days after it is published in the Federal Register. http://jlne.ws/HUcoeb…

JLN Options: Nasdaq OMX To Transition Forex Options To Mirror Spot-Market Prices Standard

LEAD STORIES Nasdaq OMX To Transition Forex Options To Mirror Spot-Market Prices Dow Jones NewswiresNEW YORK – Nasdaq OMX Group Inc. (NDAQ) is revamping the way it lists options on foreign currencies, a move that brings spot-market pricing onto a regulated exchange. PHLX Forex Options, pegged to launch June 18, will transition the pricing convention of existing foreign-exchange options listed on Nadaq’s PHLX options exchange to “strike” prices that mirror currency exchange rates. Previously, strike prices were based on a multiple of spot-market currency prices. Now, they will be simplified to more closely match the exchange rates traders are familiar…

JLN Options: SEC Charges OptionsXpress In Naked Short Selling Scheme Standard

Lead Stories SEC Charges OptionsXpress In Naked Short Selling Scheme WSJ.com The Securities and Exchange Commission charged an online brokerage and clearing agency, as well as four of the firm’s officials and a customer, in an alleged naked short selling scheme. The SEC alleges that Chicago-based optionsXpress and its customer, Jonathan I. Feldman, repeatedly engaged in a series of sham “reset” transactions designed to give the illusion that the firm had bought certain securities. Naked short-selling is when an investor sells stock without having the borrowed shares to deliver to the buyer. Regulation SHO, a package of SEC rules aimed…

JLN Options: CME independent traders boycott pit-traded options Standard

Lead Stories CME independent traders boycott pit-traded options By Howard Packowitz, MarketWatch CHICAGO -(MarketWatch)- Independent traders staged a walkout Friday of CME Group Inc. options on Eurodollar futures, protesting a large, privately negotiated trade a day earlier that they claimed was unfair. The action by the floor traders, who are also known as locals, threatened to deplete volumes in one of CME’s most-actively traded interest rate products, although there were signs the protest might be calming down as the morning went on. The protest followed a massive block options trade performed in Eurodollar futures Thursday. Block trades are privately negotiated…

JLN Options: BM&F Bovespa, Chilean Bourse To Develop Derivatives Market Standard

Lead Stories BM&F Bovespa, Chilean Bourse To Develop Derivatives Market WSJ.com SAO PAULO (Dow Jones)–Brazil’s securities exchange, BM&F Bovespa SA (BVMF3.BR), announced a partnership with its Chilean counterpart to build a fully fledged derivatives market in that country, it said Thursday in a statement. BM&F Bovespa said it will provide its knowledge and expertise to the Chilean bourse Bolsa de Comercio de Santiago to develop its derivatives market, including such products as options and futures contracts in equities, interest rates and foreign exchange. http://jlne.ws/HFxRUG DAX Puts Hit Five-Year High on European Crisis Concern By Alexis Xydias and Cecile Vannucci, BloombergOptions…

JLN Options: S&P Indices, TMX Group launch Low Volatility and High Beta Versions of the S&P/TSX Composite Index Standard

Lead Stories S&P Indices, TMX Group launch Low Volatility and High Beta Versions of the S&P/TSX Composite Index Press Release TORONTOIndices Licensed to PowerShares CanadaS&P Indices and TMX Group Inc. announced today that they are launching two new indices designed to provide market participants with unique measuring tools for specific stock characteristics within the S&P/TSX Composite, the principal broad market measure for the Canadian equity markets. The S&P/TSX Composite Low Volatility Index measures the performance of the 50 least volatile stocks in the S&P/TSX Composite. http://jlne.ws/HL9iXRCBOE Posted White PapersThe CBOE has posted three new white papers on their web site…

JLN Options: VIX Rises a Record Eighth Day as Europe Concerns Increase Standard

Lead Stories VIX Rises a Record Eighth Day as Europe Concerns Increase By Joanna Ossinger and Nikolaj Gammeltoft, Bloomberg The Chicago Board Options Exchange Volatility Index (VIX) advanced for a record eighth day as surging Spanish and Italian bond yields intensified concern about the European debt crisis. The gauge known as the VIX, which measures the cost of Standard & Poor’s 500 Index options, rose 9 percent to 20.51 at 1:10 p.m. New York time today. The S&P 500 fell 1.4 percent.Spanish bonds dropped as Economy Minister Luis de Guindos declined to rule out a rescue for the nation. Concern…