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Category Archives: Options

Options news updates from John Lothian News.

Options on ETFs Warning; Short-vol Funds; Oil Options Standard

Observations & Insight VIX Index Hits All-Time Daily Closing Low Value of 9.14 Matt Moran – VIX Views On November 3 the Cboe Volatility Index (VIX) closed at 9.14, an all-time record low for both a daily and weekly closing value for the index. jlne.ws/2Ad9w9m Lead Stories If You’re Trading Options on ETFs, Read This First Simon Constable – WSJ More individual investors are trading options on exchange-traded funds. The trend worries some financial experts, who say inexperienced traders may not fully understand the risks. Interest in ETF options comes amid growth in the number of ETFs and the amount…

Goldman exits options market making; Historic volatility; SocGen struggles Standard

Lead Stories Goldman Sachs to Withdraw From Part of U.S. Options Market Brian Louis – Bloomberg Will stop serving as a market maker on U.S. exchanges; Traders struggling with high costs, low volatility in options Goldman Sachs Group Inc. will stop serving as a market maker on U.S. options exchanges, following others in exiting that business amid high costs, sluggish volume and low volatility. /goo.gl/hxa23m ****SD: WSJ here. What’s the tech angle? More bronze than gold? Other “Goldman struggles” news from Reuters – Goldman taps energy execs in bid to turn around commodities unit Historic Volatility Recently Dropped Below 1.7…

Cboe acquires Silexx assets; Calmest VIX month; OCC blog; Bad vol info Standard

Observations & Insight October 2017 Options Exchange Market Share via OCC Lead Stories Cboe Global Markets Acquires Assets of Silexx Financial Systems Cboe Cboe Global Markets, Inc. today announced it has acquired the assets of Silexx Financial Systems, LLC, a Sarasota, Florida-based company that develops and operates an innovative multi-asset order and execution management system (OEMS) that caters to institutional customers throughout the U.S. jlne.ws/2A9RFkC ****SD: Luckily, no relation to Skrillex (if you’re not familiar, don’t bother). Accomplishing The Impossible (Or, How OCC Interns Added Value To The World’s Largest Equity Derivatives Clearing Organization) David Hoag – Medium “We don’t…

Bitcoin Hurdles; The 871(m) Tax Problem; Quarterly and Monthly Volumes Standard

Observations & Insight OCC Cleared Contract Volume Up 20 Percent in October OCC OCC, the world’s largest equity derivatives clearing organization, announced today that cleared contract volume in October was 381,467,272 contracts, a 20 percent increase from October 2016 monthly volume of 318,439,491 contracts. Average daily volume at OCC is up four percent year-to-date in 2017 with 17,070,435 contracts. OCC’s stock loan program reported that securities lending activity was up 30 percent in October and 21 percent year-to-date. jlne.ws/2A7Kjhy ++++++ Are you on the right side of Bitcoin history? By John Lothian of JLN Shortly after JLN was published yesterday…

CME To Launch Bitcoin Futures; Mexico Spent $1.25 Billion on Oil Hedge; Scary Charts Standard

Observations & Insight The Industry Discusses MiFID II, Part II JohnLothianNews.com At the 33rd Annual FIA Futures and Options Expo in mid-October, John Lothian News spoke with a variety of industry participants about upcoming milestones and trends in financial markets. This is the second video in the series focused on MiFID II. Specifically, part two focuses more on the MiFID II effects on U.S. based participants. In part two, Drew Shields, CTO of Trading Technologies, Ed Tilly, chairman and CEO of Cboe Global Markets, Neal Brady, CEO of Eris Exchange, Julie Winkler, chief commercial officer for CME Group, and Ben…

IMF warns volatility products loom as next big market shock; Sports Gambling Is Quant Trading Firm’s Way to Beat Market Odds Standard

Lead Stories IMF warns volatility products loom as next big market shock Miles Johnson – Financial Times The International Monetary Fund has warned that the increasing use of exotic financial products tied to equity volatility by investors such as pension funds is creating unknown risks that could result in a severe shock to financial markets. on.ft.com/2A0vA8b Sports Gambling Is Quant Trading Firm’s Way to Beat Market Odds Kit Chellel and Annie Massa – Bloomberg Susquehanna will wager on football, basketball from Dublin; Firm’s founder Yass is a poker whizz who deploys statistics Susquehanna International Group has always embraced game theory,…

Talk of CAT Delay; Bond vol shows signs of life; Investors fearless Standard

Lead Stories Exchanges in talks with U.S. SEC to delay new audit system: sources John McCrank – Reuters Stock exchanges are in talks with the U.S. Securities and Exchange Commission to possibly delay the rollout of a new system aimed at helping the regulator better police the markets, sources familiar with matter the told Reuters. /goo.gl/WCiMXs ****SD: They’re going to have to make a decision shortly. SROs are scheduled to start reporting data to the central repository on November 15. Bond Volatility Shows Signs of Life as Rates Divergence Widens Cormac Mullen – Bloomberg As U.S. Treasury yields climb to…

VIX short fears overblown; Rule-based monetary policies to keep vol low; G-Sib postponed Standard

Observations & Insight Showerthoughts: Lewis in 1989, Gambling and Edge Spencer Doar – JLN From “Liar’s Poker” – “…The attraction of options and futures, our specialty item, was that they offered both liquidity and fantastic leverage. They were a mechanism for gambling in the bond markets, like superchips in a casino that represent a thousand dollars but only cost three. In fact, there are no superchips in casinos; options and futures have no equivalent in the world of professional gambling because real casinos would consider the leverage they afford imprudent. For a tiny down payment, a buy of a futures…

Volatility Is World’s Undervalued Asset; Acting Like Risk Doesn’t Exist Standard

Lead Stories Volatility May Be the World’s Only Undervalued Asset Class Doug Kass – RealClearMarkets I have argued that risk is underpriced because in large measure of the structural changes in the markets and participants positioning. Risk is an ever-present condition that cannot be eliminated, though it can be shifted through time and redistributed in form. bit.ly/2yNJED8 Sometimes You Beat the Bear. Lately, the Bear Beats You. Stephen Gandel – Bloomberg Investors have spent at least $2.6 billion this year on funds that are supposed to protect their portfolios in a market crash. Instead, those funds, rather than insuring their…