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Category Archives: Options

Options news updates from John Lothian News.

JLN Options: CBOE Eyes New Futures On Equities, Bond Yields, Commodities Standard

Lead Stories CBOE Eyes New Futures On Equities, Bond Yields, Commodities By Jacob Bunge, Of DOW JONES NEWSWIRESThe parent of the Chicago Board Options Exchange is exploring ways to broaden its small U.S. futures market with contracts linked to stocks, bond yields and commodities, according to an executive.CBOE Holdings Inc. (CBOE), which runs the largest U.S. options exchange by contract volume, is looking for ways to bulk up in proprietary futures contracts that carry higher trading fees than stock options.The eight-year-old CBOE Futures Exchange does most of its business in futures linked to the CBOE Volatility Index, or VIX, the…

JLN Options: Short-term strategies boost US options trading Standard

Lead Stories Short-term strategies boost US options trading Tom Osborn, Financial news (subscription)10 Jan 2012Record trading in US equity options markets last year was boosted by fund managers increasingly hedging short-term equity positions using short-dated options contracts, according to a report from US research firm Tabb Group, as the US market gears up for another heavy year of trading on the back of volatile cash markets.  Volumes in the US options market reached record levels in 2011, despite flagging slightly in December, with 4.5 billion contracts changing hands across the market’s nine exchanges. That figures represents a 17% rise over…

JLN Options: CBOE Stock Exchange Completes Acquisition of National Stock Exchange Standard

Lead Stories CBOE Stock Exchange Completes Acquisition of National Stock ExchangeCHICAGO, January 9, 2012 – CBOE Stock Exchange (CBSX) announced today that it completed the acquisition of all-electronic National Stock Exchange (NSX) on December 30. The acquisition, approved by the Securities and Exchange Commission, allows CBSX to expand its footprint in the securities exchange space by wholly owning and operating a second separate exchange. Both exchanges will continue to operate separately under their current names and will integrate teams in Chicago and Jersey City, NJ. http://jlne.ws/dqtww6 CBOE Stock Exchange Buys Market in Bid to Diversify Trading Client Roster New York…

JLN Options: CBOE FUTURES EXCHANGE TO LAUNCH SECURITY FUTURES TRADING IN EMERGING MARKETS VOLATILITY INDEX Standard

Lead Stories CBOE FUTURES EXCHANGE TO LAUNCH SECURITY FUTURES TRADING IN EMERGING MARKETS VOLATILITY INDEX CHICAGO – January 6, 2012 — CBOE Futures Exchange, LLC (CFE) announced today that it will launch trading in security futures on the CBOE Emerging Markets ETF Volatility Index (Index ticker: VXEEM; futures symbol: VXEM) on Monday, January 9, pending regulatory approval. The VXEEM Index reflects the implied volatility of the iShares MSCI Emerging Markets Index exchange-traded fund (ETF) (ticker: EEM). EEM options were the eleventh most actively traded option at CBOE in 2011. In addition to hedging emerging markets volatility exposure or making direct…

JLN Options: Options Traders See Higher Volatility Ahead Standard

Lead Stories Options Traders See Higher Volatility Ahead By STEVEN M. SEARS, Barrons.comSavvy options traders are taking advantage of the subdued VIX to buy low-cost protectionOn Thursday, the stock market sent investors a critical message. If you failed to hear it, you missed information that matters more than the mostly rosy prognostications for the stock market in 2012 from Wall Street banks. The message: Volatile volatility is back from winter vacation, and likely here to stay for all of 2012. http://jlne.ws/AqS5Y1 Deutsche Börse Holders See NYSE Deal Chances Fade By ULRIKA DAUER And JACOB BUNGE, WSJ.com With the European Union’s…

JLN Options: Commentary: CBOE BuyWrite Indexes Growing, With Interest from Pension Funds and Institutional Investors Standard

CBOE BuyWrite Indexes Growing, With Interest from Pension Funds and Institutional Investors The Chicago Board Options Exchange recently compiled the 2011 year-end returns for its BuyWrite and PutWrite indexes, which were higher by percentage change than some of the biggest U.S.-based stock indexes. JLN Options spoke with Matt Moran, vice president, business development for the CBOE, on the growth of the indexes since the BXM, the first and most well known options benchmark index, was introduced in 2002. The CBOE BXD index was up 7.9%, BXY 7.1%, PUT up 6.1% and BXM up 5.7%, compared to gains of only 2.5%…

JLN Options: NYSE CEO Says Takeover Will Be Determined in ‘Next Few Weeks’ Standard

Lead Stories NYSE CEO Says Takeover Will Be Determined in ‘Next Few Weeks’By Whitney Kisling, BloombergThe fate of NYSE Euronext (NYX)’s merger (NYX) with Deutsche Boerse AG (DB1) will be determined in “the next few weeks” as European officials rule whether it will stifle competition, Chief Executive Officer Duncan Niederauer wrote.“We have already produced a clear and articulate response to the commission‘s statement of objections,” Niederauer said in a transcript of a video message to employees filed with U.S. regulators today. “The next few weeks will determine the outcome of this process.”http://jlne.ws/wDkheV Euro zone crisis, MF Global chill trading at…

JLN Options: THE OPTIONS INDUSTRY COUNCIL ANNOUNCES DECEMBER OPTIONS VOLUME DOWN 6% WHILE 2011 VOLUME SETS NINTH CONSECUTIVE RECORD Standard

Lead Stories THE OPTIONS INDUSTRY COUNCIL ANNOUNCES DECEMBER OPTIONS VOLUME DOWN 6% WHILE 2011 VOLUME SETS NINTH CONSECUTIVE RECORD CHICAGO (January 3, 2012) – The Options Industry Council (OIC) announced today that 320,324,954 total options contracts were traded in December, which is a 6.12 percent decrease compared to December 2010 volume of 341,207,420 contracts. Total options trading volume for 2011 came in at 4,562,748,194 contracts, surpassing last year’s record by 17.02 percent when 3,899,068,670 total options contracts were exchanged. Equity options volume was 4,224,604,529 contracts, 17.01 percent higher than the 3,610,436,931 contracts traded the previous year. Trading volume in 2011…

John Lothian News Top Stories of 2011 Standard

John Lothian

We’ve created a list of the five most influential stories of 2011 for each of our newsletters, as well as from MarketsReformWiki, to help define what was a very eventful year across almost every market and industry sector. The year was punctuated by one major story inside another. The bankruptcy of MF Global, which requires its own top five list, became tied to another top story, the European sovereign debt crisis sequel – Greece and Italy. Of course, the downgrade of U.S. debt in August and assorted European states raised the ire of politicians and regulators who called for more…