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Tag Archives: capital requirements

The Options Industry Leader Series 2018 – Nasdaq’s Kevin Kennedy Feature,Mwiki,Video,video

Video series brought to you by OCC In this video from the 36th annual Options Industry Conference in Amelia Island, Fla., Kevin Kennedy, Nasdaq senior vice president and head of U.S. options, talks about how the industry weathered low volatility, Nasdaq’s proprietary product suite and capital requirement issues.     Produced by Mike Forrester Interview by Spencer Doar  

Top Options Stories of 2017 Countdown Feature,Video,video

Correction: SROs did NOT begin reporting to the Consolidated Audit Trail in November – the deadline for implementation was indeed delayed.  For a CAT update, see our January 2018 video with Thesys CAT Chief Compliance Officer Shane Swanson.  Listicles are occasionally the butt of jokes – Buzzfeed knows – but what about listideos? With 2017 in the bag, we at JLN thought we’d recap the year in options with a list of the big stories and trends – and there were a number. Below are links to stories referenced in the countdown. When a theme is addressed, the linked story…

“Unwarranted” G-SIB reqs; Scared of the CAT; Vol comeback welcome Newsletter,Options

Observations & Insight   Bitcoin rockets above $5,000 to all-time high Jemima Kelly – Reuters Bitcoin smashed through the $5,000 barrier for the first time on Thursday, jumping as much as 8 percent on the day as investors shrugged off the latest warnings on the risks of buying into the booming cryptocurrency market. ****SD: There will be plenty of crypto talk at FIA Expo next week, especially as exchanges progress with their nascent endeavors to launch crypto products. However, I still am not certain what percentage of people who talk about digital currencies/blockchain actually know what the heck makes…

OCC chief Donohue latest to warn over Basel rules; Does a 263% Profit Mean Markets Are Efficient?; What History Says About Low Volatility Newsletter,Options

Observations & Insight June 2017 Options Exchange Marketshare via OCC ++++++ OCC Cleared Contract Volume Up Two Percent in June OCC OCC, the world’s largest equity derivatives clearing organization, announced today that cleared contract volume in June reached 387,597,223 contracts, a two percent increase from the June 2016 volume of 378,908,938 contracts. OCC’s year-to-date average daily cleared contract volume was also up two percent from 2016 with 17,174,603 contracts. Cleared futures volume was up 16 percent in June with 13,194,530 contracts, and securities lending CCP activity was up 27 percent over June 2016 with 1,142,708 new loan transactions. ++++++…

Liquidity Providers Unduly Penalized By Capital Rules: CTC’s Crutchfield Exchanges, OTC & Clearing,Interview,Options,Video,video

Financial Reform Objectives at Odds with Effects of Rules What’s a market maker to do when it can’t warehouse risk? The options industry has a problem with bank capital rules. In this JLN video, Steve Crutchfield, head of market structure with CTC, discusses the burdens placed on market makers due to rules that are out of touch with the stated goals of post-crisis reforms, as well as structural issues within options markets.    There are only three major banks with a significant footprint in clearing for options market making firms. Those banks’ ability to conduct that business is under pressure…

Collateral Update from Ted Leveroni of Omgeo Interview,Regulation,Video

Ted Leveroni

After the 2008 financial crisis, national and international regulators laid the groundwork for new capital requirements for banks, dealers, funds and investors. From margin requirements on the $624 trillion swaps market to the stringent bank capital requirements in Basel III, early estimates predicted a shortage of eligible collateral upwards of a few trillion dollars. We have now reached the implementation phase, with mandatory clearing of interest rate and credit default swaps having begun on March 11, 2013 for swap dealers and major swap participants (“Category 1”) and on June 10 for much of the buy-side (“Category 2”). Thus far, the…

John Lothian Newsletter: CME Group sues to freeze CFTC swap reporting rules; Trade bodies warn on clearing capital burden; Pressure Rises on Fiscal Crisis John Lothian Newsletter,Newsletter

CME Group goes to court, asking for help in preventing the CFTC from enforcing its new swap reporting regulations. Two broker trade groups in Europe are warning that new capital requirement rules may wreck the clearing industry in that region. Pressure mounts on the US adminstration and legislature from all sides to stop kicking cans and hiding in basements, and take steps to shrink or avoid the upcoming fiscal cliff.

Ted Leveroni of Omgeo Discusses Collateral Requirements Under Dodd-Frank Interview,Regulation,Video

Ted Leveroni is the Executive Director of Derivatives Strategy and External Relations for Omgeo, a financial services company specializing in post-trade operations such as trade allocation, confirmation and settlement for investment managers, broker/dealers and custodians. John Lothian News Editor-at-Large Doug Ashburn spoke with Leveroni about collateral requirements under new regulations, and how firms are responding with innovation in collateral efficiency.