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Category Archives: Options

Options news updates from John Lothian News.

JLN Options: CBOE builds out compliance staff as second exec leaves Standard

Lead Stories CBOE builds out compliance staff as second exec leaves Crain’s Chicago Business By Lynne Marek March 21, 2012CBOE Holdings Inc. is beefing up its compliance and regulatory staff as a Securities and Exchange Commission investigation bears down on the Chicago options exchange company. Since the start of the year, CBOE has posted job listings on its website seeking a chief compliance officer, a deputy chief regulatory officer and a chief examiner plus two other examiners, all of whom have compliance responsibilities. In the prior five months, it only sought two lower-level examiners. A spokeswoman declined to comment on…

JLN Options: CBOE Market-Regulation Head Departs During SEC Inquiry Standard

Lead Stories CBOE Market-Regulation Head Departs During SEC InquiryBy Jacob Bunge Of DOW JONES NEWSWIRES CHICAGO (Dow Jones)–The head of the Chicago Board Options Exchange’s market-regulation department has left the company, the second compliance official to depart the CBOE during a regulatory investigation into its market-oversight functions. Linda Gerdes was dismissed this month from her post at the CBOE after five years leading its market-regulation department and about 23 years at the exchange. Previously, she designed technology systems to help the CBOE catch manipulative trading activities and worked with Securities & Exchange Commission officials on market surveillance. Monday, Gerdes confirmed…

JLN Options: VIX Bets at Record as Volatility Sinks to Five-Year Low Standard

Lead Stories VIX Bets at Record as Volatility Sinks to Five-Year Low Bloomberg By Nikolaj Gammeltoft, Cecile Vannucci and Matt Robinson – Mar 19, 2012 Investors are piling into securities that protect against losses in equities at the fastest rate ever after the Standard & Poor’s 500 Index climbed to the highest level in almost four years. Demand to hedge gains pushed up the number of shares available for trading to records last week in four of the five largest exchange-traded funds and notes that track U.S. stock volatility, data compiled by Bloomberg show. For the iPath S&P 500 VIX…

JLN Options: Third Steepest First-Second Month VIX Futures Contango Ever (TVIX, VXX, VXZ, ZIV, XIV) Standard

Lead Stories Third Steepest First-Second Month VIX Futures Contango Ever (TVIX, VXX, VXZ, ZIV, XIV)By Bill Luby, ETF Daily NewsFor a variety of reasons, investors seem unwilling to embrace the current rally and with each day the market rises, I see a scramble in the indicator forest to find some sort of proof that stocks are finally, inevitably going to correct…and soon. I need to give this phenomenon a name, so I am going to call it indicator hunting and define it as a companion to confirmation bias…One of the current targets of indicator hunting is the huge contango in…

JLN Options: CBOE’s Ed Tilly says SPXpm is just fine Standard

Commentary CBOE’s Ed Tilly says SPXpm is just fine By Jim Kharouf, John Lothian NewsletterCBOE’s record trading day in the SPXpm options is good news for its C2 Options Exchange (see first lead story below for the press release). For some, the contract has been a bit of a slow starter. CBOE’s Ed Tilly (president and COO of CBOE Holdings, Inc.) said at the FIA BOCA conference just prior to the record day, that the contact had grown “more slowly than we had anticipated.” Tilly said he asked CBOE market participants at its Risk Management Conference this week if there…

JLN Options: Behold! Fear Squared! CBOE Launches VIX of VIX Index! Standard

Lead Stories Behold! Fear Squared! CBOE Launches VIX of VIX Index!By Kaitlyn Kiernan, Dow Jones NewswiresIn the wise words of the nation’s longest-serving president, Franklin D. Roosevelt, “The only thing we have to fear is fear itself.” Today, the Chicago Board Options Exchange has begun tracking just that–the fear of fear. CBOE announced the beginning of its new “VIX of VIX” index (VVIX). The index will track the volatility of CBOE’s Volatility index–the market’s so-called fear gauge.http://jlne.ws/wox6Lf CME’s incoming CEO Gill isn’t seen as a change agentBy Lynne Marek, Crain’s Chicago BusinessNew CME Group Inc. CEO Phupinder Gill, or “Gill”…

JLN Options: CME’s Donohue to step down; Gill named new CEO Standard

Lead Stories CME’s Donohue to step down; Gill named new CEOBy Ann Saphir and Tom Polansek, ReutersCraig Donohue, CME Group Inc (CME.O)’s chief executive officer since 2004, will step down at year end, to be replaced by current CME president Phupinder Gill, the company said on Monday.Chairman Terrence Duffy, who has been the face of the company as it navigates the fallout from the failure last October of giant broker MF Global, will take on the additional role of president, the company said.Donohue, speaking on a conference call with analysts, said his exit was not linked to MF Global’s failure,…

JLN Options: CBOE Compliance Executive Patrick Fay Resigns Amid SEC Probe Standard

Lead Stories CBOE Compliance Executive Patrick Fay Resigns Amid SEC ProbeBy Joanna Ossinger and Nikolaj Gammeltoft, BloombergMar 12, 2012 CBOE Holdings Inc. (CBOE), the options exchange being investigated by the Securities and Exchange Commission, said senior compliance executive Patrick Fay has resigned, spokeswoman Gail Osten said in an e-mailed statement. Fay had been placed on leave after the SEC began investigating the options-market operator’s oversight of traders, the Wall Street Journal reported last week, citing people familiar with the matter. He will “pursue other interests,” Osten said today.CBOE Holdings said in its annual report filed Feb. 28 that the SEC…

Special Report: CME Group’s Craig Donohue to Retire Standard

Craig Donohue

With the Futures Industry Association’s International Conference ready to begin in Boca Raton, Florida tomorrow, CME Group hit the wires with some big news today.  The Boca Raton bombshell came early this year as the CME announced Craig Donohue will retire at year’s end and be replaced by a combination of Phupinder Gill and Terry Duffy.  Donohue took over the CME’s CEO job on January 1, 2004, giving him an unusually long tenure for a CEO or exchange CEO.  Gill will become CME Group CEO and Duffy will add the title of president.  This will give CME Group a new…