Breaking News

Tag Archives: Basel III

The Pound’s Brexit Test; FX Flash Crashes; Basel Rules Newsletter,Options

Observations & Insight Sunday, Sunday, Sunday Spencer Doar – JLN My fantasy football team was bad this year. The Detroit Lions in 2008 bad. I went 0-13. A mathematically inclined friend in the same league ran the numbers – not sure of the specifics, but he used ESPN’s point predictions versus actual performance – and his calculations showed that my abhorrent results were nearly three standard deviations outside the norm. I would not have found this nearly as amusing before I started covering the options space and following earnings seasons. Bottom line, that frees up some of Sunday night. Good…

Stock Returns and Politics = Not Normal; VIX The Tail Wagging The Dog?; Euro Pressured as Volatility Rises Newsletter,Options

Lead Stories Stock Returns, Like Politics, Are Not Normal; There are two primary reasons for the protracted decline in both implied and realized volatility. Dean Curnutt – Bloomberg Perhaps no consensus opinion has proven more incorrect than the notion that a Donald Trump presidency would lead to more market volatility. So range-bound has been the S&P 500 Index in 2017 that fully 60 percent of the days have produced a daily upside or downside return of less than 0.25 percentage point. /bloom.bg/2wqU4c9 ****SD: From WSJ – Investors Grapple With Signs of Unrest and from NY Times – The Stock Market…

Cold as ICE: Sprecher asks UK, How much do you love me? Feature

In the battle for financial markets in Europe, exchanges would like some more communication about why they should stay in the UK. To hear one exchange leader tell it, UK markets could use a little more love. At the 10th annual FIA IDX conference on Tuesday, ICE Chairman and CEO Jeff Sprecher said UK regulators have not communicated with ICE much about how they could work together and keep ICE Europe’s operations more firmly in London.  In the wake of Brexit and the upcoming MiFID II rules in January, not to mention the ongoing questions about equivalent financial regulations after…

The New Bond: KCG’s Dan Coleman Looks To Plug Exchange Model Into US Treasury Market, and How It Might Just Succeed Commentary,Feature

There are few markets, if any, that garner attention like the US Treasury market. And there are few markets as ripe for disruption as the US Treasury market. Earlier this month, at the WFE Annual Meeting in Cartagena, Colombia, KCG’s CEO Daniel Coleman outlined his vision for a new US Treasury market, which would transform it into a structure similar to a traditional equities market with bank and non-bank market makers, transparent trading platforms and efficient settlement or clearing services.   The marketplace may indeed be evolving into the structure Coleman advocates, as the Federal Reserve Bank of New York…

Steve Woodyatt, Object Trading – Blurring the buy and sell sides MWEd,Video,video

Over the last 10 years the buy and sell sides have undergone drastic shifts due to two main factors: unbundling and fragmentation. In this talk from MarketsWiki Education’s London event, Steve Woodyatt, CEO of Object Trading, discusses those two phenomena. Woodyatt details how unbundling and fragmentation are caused, to one degree or another, by regulation and competition. Whereas traditionally the sell side provided a whole host of services to the buy side, now the lines have been blurred and in some cases the buy and sell sides appear to have traded places. These service packages are essentially being “unbundled.” That…

IOMA Notes – Clearing Things Up Blog

While readers in the EMEA and Americas regions slept, the World Federation of Exchanges kicked off its annual IOMA conference in Kuala Lumpur, Malaysia. For those unfamiliar with IOMA, it began in 1983 as the International Options Market Association, and in 2002 became affiliated with the WFE. The focus of the conference has drifted over the years and its sessions are now squarely centered on the post-trade derivatives space – clearing, settlement, blockchain, systemic risk, and the panel I am moderating, trade reporting. Is a name-change imminent? At the opening reception, I could count on one (maybe two) hands the…

Squeezing Pennies: Clearing Houses Reach For Compression, Margin Relief and Netting Commentary,Financials,Regulation

When it comes to clearing and settlement today, the name of the game is capital efficiency. With a host of regulations hitting the market, particularly with bank capital requirements under Basel III, exchanges and clearing houses are moving quickly to find ways for banks and clearing FCMs to lower the amount of cash they need to hold onto in the name of lower systemic risk. It is an interesting time to be in the clearing space, as clearing firms offer a number of new services and some oldies aimed at clearing FCMs. Portfolio margining, which has been done more or…

John Lothian Newsletter: U.S. Probes Treasuries Niche That Some Investors Claim Is Rigged; Banking Giants Learn Cost of Preventing Another Lehman Moment; Bonus Pay on Wall Street Is Likely to Fall John Lothian Newsletter,Newsletter

First Read FIA Expo: Acid washed options Spencer Doar – JLN The clear message from FIA Expo was that the options industry needs market makers and regulators are making it hard on market makers. At the risk of sounding like “South Park’s” Mr. Mackey, that’s bad, m’kay? Adding to the current quandary of market makers in the options space is the sheer number of markets that need making. While kicking off the “Equity Options Exchange Leaders” panel, moderator Patrick Hickey, head of market structure at Optiver, discussed the bloated number of strikes that participants have to deal with when trading…

Reg Roadmap: European Regulation Winding Its Way Forward Regulation,Special Report

The European regulatory overhaul has been long and winding as industry participants grapple with three major initiatives simultaneously: EMIR, MIFID II and Basel 3, just to name a few. Even with the recent delay of MIFID II standards to September, regulatory experts say there is progress on some key areas, including an ongoing effort by US and EU regulators to find common ground on key sticking points, such as margin rule differences. Scroll through to view the full story with photos and video, or click here for the full layout.