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Category Archives: Options

Options news updates from John Lothian News.

JLN Options: NASDAQ OMX BX Options(SM) Options Exchange Joins OCC Standard

Lead Stories NASDAQ OMX BX Options(SM) Options Exchange Joins OCCPress ReleaseOCC and The NASDAQ OMX Group, Inc. announced today that NASDAQ OMX BX Options(SM) has become an OCC participant exchange. NASDAQ OMX BX Options(SM) began operations today, Friday, June 29.The addition of NASDAQ OMX BX Options(SM) to the NASDAQ OMX exchange suite now brings the total number of options markets in the U.S. to ten.“Our new platform will be a home for retail order flow that is transparent and it will compliment PHLX and NOM, giving our customers a complete liquidity destination for options trading,” said Tom Wittman, Head of…

JLN Options: Option Trades See Funding Stress from Rate-Manipulation Probe Standard

Lead Stories Option Trades See Funding Stress from Rate-Manipulation ProbeHoward Packowitz, The Wall Street JournalEurodollar options traders on Thursday signalled that a key interbank lending rate is expected to rise in the wake of the first settlement surrounding allegations that it was manipulated by financial institutions.http://jlne.ws/OEDYA1 Buy Side Turns to Options as Strategies Grow More ComplexJustin Grant, Advanced TradingU.S. buy-side trading firms are expanding their use of options and are turning to complex strategies such as multi-legged spread trades that are being executed through direct market access and algorithms, research firm Tabb Group said in a report. http://jlne.ws/LTMFBI OIC and…

JLN Options: Derivatives Rules Have Swaps Users Eyeing Shift to Futures Standard

Lead Stories Derivatives Rules Have Swaps Users Eyeing Shift to FuturesKaty Burne, Dow Jones NewswiresRegulators’ push to make derivatives markets safer is having an unexpected side effect: it is encouraging some financial institutions to rethink how they manage risk and consider experimenting with alternatives to privately traded derivatives called “swaps.”…Eris Exchange, a start-up, has interest-rate swap futures, as does CME Group. (CME). Other exchanges also are looking at these hybrids: CBOE Futures Exchange, a unit of the company that owns the Chicago Board Options Exchange, is creating swap futures allowing investors to bet on changes in stock-market volatility. TMX Group…

JLN Options: Expect Volatility to Reign This Week Standard

LEAD STORY Expect Volatility to Reign This WeekKevin A. Tuttle, MinyanvilleIt’s always interesting to have the ability to analyze observers’ clashing perspectives after touring an art gallery.  Perspectives are ingrained from education, personal experience, and even emotional state. These incongruities also happen — and quite often, I might add — with financial analysis when the market becomes directionless.http://jlne.ws/OnSfj8 Despite Recent Progress, U.S. Investors Still Pessimistic About Euro, With Negative Outlook on Global EquitiesPress ReleaseTradeStation Securities (“TradeStation”), a wholly owned subsidiary of Monex Group, Inc. , which also includes Monex, Inc. (“Monex”) and Monex Boom Securities, today announced the results of…

JLN Options: VIX Futures Experience Most-Active Trading Week Ever Standard

Lead Stories VIX Futures Experience Most-Active Trading Week EverPress ReleaseCBOE Futures Exchange (CFE) announced today that several trading volume records were set during the week of Monday, June 18 through Friday, June 22, 2012.Futures on the CBOE Volatility Index (the VIX Index) experienced their most-active trading week ever last week. The record 657,221 contracts that changed hands from Monday, June 18 through Friday, June 22, 2012 surpassed the previous high of 533,430 VIX futures contracts traded during the week of August 8-12, 2011.  In addition, on Monday, June 18, 159,744 VIX futures contracts traded, a new single-day record, eclipsing the…

JLN Options: Hedge funds get exotic in hunt for profits Standard

Lead Stories Hedge funds get exotic in hunt for profitsLaurence Fletcher and Tommy Wilkes, ReutersInvestors fed up with losses from their mainstream hedge fund holdings are eyeing some exotic alternatives…One hedge fund investor at the conference said he had achieved double-digit returns from investing in a range of more esoteric funds, such as those involved in electricity arbitrage, where a manager tries to profit from fluctuating prices by buying and selling electricity, and those trading the volatility of option prices.http://jlne.ws/MoOiGx U.S. Stocks Tumble as Commodities Enter Bear MarketRita Nazareth, BloombergU.S. stocks tumbled, while commodities entered a bear market, after signals…

JLN Options: ICAP set for futures as its adds PLUS exchange Standard

LEAD STORY ICAP set for futures as its adds PLUS exchangeLuke Jeffs, ReutersICAP has completed its contested takeover of PLUS Stock Exchange, a key strategic deal for the British broker as it gears up to challenge NYSE Euronext and Deutsche Boerse by moving into futures trading.The broker and PLUS Markets Group said on Thursday that they had completed the acquisition, which will net PLUS shareholders about 640,000 pounds ($1 million).http://jlne.ws/PBytyB State Street Adds New Corporate Bond ETF OptionsTom Lydon, ETF TrendsInvestment interest in fixed-income bonds and exchange traded funds has grown as wary investors remain uncommitted to the equities market….

JLN Options: A Wager on Market Optimism Standard

LEAD STORY A Wager on Market OptimismOptions traders are betting that stocks will rally and the market’s fear gauge will continue falling in the wake of Federal Reserve action. Steven M. Sears, Barron’sTraders are using options to bet the market’s fears will continue to subside in the wake of an expected Federal Reserve move designed to stimulate the weakened U.S. economy.Investors are preparing for the Chicago Board Options Exchange’s Volatility Index, or VIX, to extend a 26% decline since last Wednesday that has pushed the fear gauge into levels associated with extreme bullish optimism about stock prices.http://jlne.ws/MM6E2X Exchanges, Brokers Back Nickel-And-Dime…

JLN Options: CBOE Plans Process to Trade SPX Variance Strips Standard

Lead Stories CBOE Plans Process to Trade SPX Variance StripsAllows Trading of a Portfolio of SPX Options in a Single Transaction Press ReleaseThe Chicago Board Options Exchange (CBOE) has announced that it plans to introduce, starting July 27, a process for trading SPX Variance Strips — a portfolio of S&P 500 Index options (SPX) intended to replicate S&P 500 implied variance exposure — in a single transaction.Trading in SPX Variance Strips (ticker: VSTRP) will be fully electronic, aimed at qualified professional investors, and employ a special quoting convention similar to the over-the-counter (OTC) method for quoting variance swaps.http://jlne.ws/L1V42R ETFs May…