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Category Archives: Options

Options news updates from John Lothian News.

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…

JLN Options: USDX and Russell Index Option Floor Trading To End – Effective May 1, 2012 Standard

Lead Stories USDX® and Russell Index Option Floor Trading To End – Effective May 1, 2012 Effective with the start of trading for trade date Tuesday May 1, 2012, the Exchange will cease open outcry trading of USDX, Russell 2000® Index and Russell 1000® Index options contracts. From that date these option contracts will trade solely on the ICE electronic trading platform; the electronic platform is already the sole trading venue for the related futures contracts.  Electronic trading hours for these products are not affected by the end of floor trading for the products. Additional information on this change can…

JLN Options: CBOE Executive Put on Leave Amid SEC Probe Standard

Lead Stories CBOE Executive Put on Leave Amid SEC ProbeBY JACOB BUNGE, WSJ.comCHICAGO—The largest U.S. options exchange has taken a senior compliance executive off the job in the wake of an investigation by U.S. market regulators into the company’s oversight of traders, according to people familiar with the matter.CBOE Holdings Inc. disclosed last week that the Securities and Exchange Commission was investigating whether the company properly supervised the activity of firms and traders registered under the exchange’s function as a self-regulatory organization. CBOE runs the Chicago Board Options Exchange as well as other options-, stock- and futures-trading platforms. http://jlne.ws/Ae9jVj U.S….

JLN Options: ETN trading surges on VIX spike Standard

Lead Stories DERIVATIVES: ETN trading surges on VIX spike 7 March 2012 | By Helen Bartholomew, International Financing Review Trading in listed volatility products surged yesterday as volatility indices spiked on the back of hefty losses across global equity benchmarks. Barclays’ iPath VXX note – the most liquid of the exchange-traded volatility products – delivered its most active session since September 2011 as more than 51m shares traded compared to total shares outstanding of 63m.Volatility spiked following a 3.4% fall in the EuroStoxx 50 index and a 1.5% decline in the S&P 500. The VIX index of short-dated options volatility…

JLN Options: VIX FUTURES OPEN INTEREST HITS NEW RECORD: OVER 280,000 CONTRACTS Standard

Lead Stories VIX FUTURES OPEN INTEREST HITS NEW RECORD: OVER 280,000 CONTRACTS CHICAGO, March 6, 2012 (Press Release) – CBOE Futures Exchange, LLC (CFE) today announced that open interest in CBOE Volatility Index (VIX index) futures reached new all-time highs on Monday, March 5 and Thursday, March 1. On March 5, open interest hit 282,314 contracts, exceeding a 256,870-contract record on March 1. Prior to these records, the highest VIX futures open interest recorded was 253,319 contracts on June 15, 2011.http://jlne.ws/yII3yy VIX Trading Volume Tells a Different Story By Dave Fry, TheStreet 03/06/12 NEW YORK (ETF Digest) — A peculiar…