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Tag Archives: capital requirements

Timely Capital Relief Comments From Fed Chair Powell or: The Options Market Stability Act Was On TV! Blog,Options

During Federal Reserve Chairman Jerome Powell’s testimony on Capitol Hill, Rep. Randy Hultgren asked Chairman Powell about targeted capital relief for bank-affiliated clearers of options liquidity providers. Recall that Rep. Hultgren authored legislation – the Options Market Stability Act – that just passed the House. That legislation seeks to provide relief for clearers by directing banking regulators “to consider a number of items including the availability of liquidity, the economic value of delta weighting and netting of positions, safety and soundness of financial institutions and overall financial stability. The legislation also requires the Federal Reserve to submit a report to…

Basel III sparks trader retreat from listed derivatives John Lothian Newsletter,Newsletter

First Read AI is changing this industry. Now what? Jim Kharouf – JLN I spent last week listening to experts in artificial intelligence talk about what AI can and will bring to the markets and the broader world. What is patently clear is that AI is here now and is only going to expand. As Jay Biondo, product manager, surveillance at Trading Technologies told me, it’s everywhere already – from Amazon’s Echo (usually called Alexa) to Netflix’s suggested picks. It’s part of Charles Schwab’s brokerage service which will allow its brokers to service thousands instead of hundreds of customers, according…

The Spread – Week of 6/25 to 6/29 Video,video

Looking for something to take your mind off of the summer heat? Well, we have a GEM of a “Spread” for you.  (Yes, we talk about Geneva Energy Markets this week.)  The following are stories referenced in this week’s episode:  Business Insider – Goldman Sachs has created a new team to take on high-speed traders like Virtu and Citadel at their own game Dealbreaker – Behold, The Ultimate Wall Street Summer Dance Video Bloomberg – Top Oil Market-Maker Closes After ‘Damaging’ Regulatory Changes Bloomberg – Rare Shift in ‘Fear Gauge’ Shows Depth of Market Angst Bloomberg – Hedge Fund That Made…

Houndstooth’s long-vol ETF bet; GEM liquidates its books; Earnings worries Newsletter,Options

Observations & Insight Big World Cup Correction and other Miscellany SD – JLN Boy oh boy did I misread the Germany v. Korea recap. It was NOT at all novel that the previous World Cup winner was knocked out in the group stage. In fact, it’s the opposite. From the USA Today:: “Four of the last five winners of the previous tournament have now crashed out in the group stage the next time around.” I should stick to American football references I guess… (That doesn’t alter the fact that UBS’ and Goldman’s computer predictions were way off, though.) Speaking of…

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. jlne.ws/2yjA2jC ****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. jlne.ws/2tiXQjn ++++++…

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…