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Category Archives: Options

Options news updates from John Lothian News.

Nasdaq vs. MIAX lawsuit update; SIP reforms on horizon?; Commodities revenue Standard

Observations & Insight X_TRADER Transformed The Industry: Now It’s Time To Do It Again Jim Kharouf – JLN The announcement that Trading Technologies will be shutting down its X_TRADER platform is not a big surprise. But what that platform has done over its 25-year lifespan certainly is. And what the new TT platform may do in the coming months and years may be equally astounding. Taking a look back, there’s not a single ISV trading platform that has had a greater impact on the industry than X_TRADER. Launched in 1994, the technology that included patented breakthroughs like the ubiquitous price…

New CyrusOne Colo Service; VIX lawsuit; Saudi options due after futures launch Standard

Observations & Insight August 2018 Options Exchange Marketshare via OCC ++++ Wednesday Bits Spencer Doar – JLN Market participants have until September 14 to comment on a Nasdaq proposal “to codify the definitions of the current protocols that Participants can use to enter quotes and orders on the Exchange and introduce a new protocol.” If you’re not a market maker, consider yourself excused from reading that. Pretty much the protocol formerly known as “OTTO” is going to be “QUO.” And the old “OTTO” is going to replaced by a new, revamped “OTTO.” Got that? Cboe is continuing its rebranding efforts,…

OCC Volumes; Flash Crashes; Position Limits Standard

Observations & Insight Remember, Remember the 15th of September Spencer Doar – JLN It’s that time of year again – the annual financial crisis reflection period. This year markets have a nice, round anniversary number to glom onto. I believe 10-year anniversaries traditionally merit gifts of tin or aluminum. I’m unsure who would be best to send those trinkets to… So there are plenty of stories floating around with plenty more to come. Here is what I expect to be one of many article lists covering issues, lessons and prognostications related to the global financial crisis. (I do hope the…

Another Big Personnel Move; BaFin supports UK in Brexit derivatives spat Standard

Lead Stories Yet another big-name equity derivatives MD changes seats Beecher Tuttle – eFinancialCareers J.P. Morgan has lost a big name within its global equity derivatives team. Jason Cuttler, who spent the last two years at JPM after a lengthy career at Goldman Sachs, has left the bank and is currently on gardening leave, suggesting he’s been poached by another firm. Cuttler didn’t respond to a request for comment on where he’s heading. /goo.gl/AsyZ8k ****SD: There have been lots and lots of moves this year. Germany aligns with the UK against Brussels on GBP100 trillion derivatives danger Ambrose Evans-Pritchard and…

Salt-N-Pepa and rate rigging; Barclays personnel move; Stocks-VIX correlation breakdown Standard

Observations & Insight Citing Salt-N-Pepa, BNP Traders Tried to Rig Benchmark Rate Matt Robinson – Bloomberg BNP Paribas SA traders referenced song lyrics when trying to rig a benchmark for interest-rate derivatives, with a favorite tune being a 1987 rap hit by Salt-N-Pepa, according to U.S. regulators. /bloom.bg/2MYK69N ****SD: Swaptions spotted in the wild! I love cases that lead to public scrutiny of trader chats. Here’s |a link to the Salt-N-Pepa song in question and here’s a link to the Montell Jordan song referenced. (Do you think the traders worked up a sweat trying to push it? Did they get…

OCC risk management plans; One way vol bets a “fool’s errand”; Melt-up concerns Standard

Lead Stories OCC Enhances Resilience with Regulatory Approval of Recovery and Wind Down and Associated Recovery Tools John Davidson, President and COO, OCC On August 23, OCC, the world’s largest equity derivatives clearing organization, received approval from the U.S. Securities and Exchange Commission of the company’s proposed recovery tools and proposed recovery and orderly wind-down (RWD) plan. These are critical risk management tools designed to enable OCC to enhance its resiliency as a Systemically Important Financial Market Utility (SIFMU) and successfully manage extreme market disruptions in future financial crises /goo.gl/CYjzcL One-Way Volatility Bets Seen as ‘Fool’s Errand’ by 6,000% Winner…

FINRA, Exchanges Set New CAT Schedule; VIX Signals; Indian Transaction Tax Standard

Observations & Insight MWE World of Opportunity – How to Spot Financial Fraud JohnLothianNews.com “As an auditor, if I start to look at recurring transactions and I ask the question, ‘What’s the economic purpose for this transaction?’ and I don’t get the right answer, I keep asking that question.” Before Barings Bank went belly-up, John Hague, recently retired from RSM, recalls giving a presentation to back office personnel. Some Barings people were there – apparently they didn’t pay attention to Hague’s talk. In this video from MarketsWiki Education’s Chicago event, Hague reviews some well known frauds, the characteristics they share…

The Big Hedge-Fund Strategy That Isn’t Working Standard

Observations & Insight The Spread – Thin Crust Pizza – 8/24 JohnLothianNews.com Most of the time, we go for a smattering of everything on “The Spread.” But this week there was a story that got a lot of clicks and stirred up the pot, so we thought we’d just address the issues that arose from that. Watch the video and see the stories referenced here » ++++ Monday Mutterings Spencer Doar – JLN There was a breakthrough in trade negotiations with Mexico today (link to Fox Business). The two sides agreed to a new pact called the United States Mexico…

VIX Changes; OCC Plans; Eurodollar Whale Standard

Observations & Insight VIX (and Other Friday Stuff) Spencer Doar – JLN The Cboe quietly dropped a proposal to amend its interpretation of rule 6.2, which you might know better as “stuff pertaining to VIX settlement.” The proposed rule change expands/clarifies the exchange’s interpretation of “strategy orders” and “non-strategy orders” to better determine whether or not someone is gaming the settlement calculation. Fed Chair Powell’s comments from Jackson Hole are in. He stuck by his guns, saying that steady rate hikes are the best way to keep the recovery going. (I’m mildly surprised there has not been a presidential tweet…