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Tag Archives: CAT

CME Group floats B share buyout plan; SEC urges completion of CAT John Lothian Newsletter,Newsletter

First Read Hits & Takes JLN Staff The most recent episode of “The Spread” – JLN’s options news recap – can be found here. ~SD If you are not a fan of “The Spread” and Spencer Doar, you should be. It is fun to see his creative and whacky side come out while sharing the news in the world of options trading. And by the way, we are looking for a firm or firms willing to sponsor this video series.~JJL In Wells Fargo’s most recent quarterly SEC filing, there were 6,250 words dedicated to legal liabilities and “efforts to rebuild…

Derivatives Hiring Spree; Barclays Trader’s Options Fraud Case to Continue Newsletter,Options

Observations & Insight OCC Cleared Contract Volume Up Six Percent in June OCC OCC, the world’s largest equity derivatives clearing organization, announced today that total cleared contract volume in June reached 409,115,041 contracts, up six percent compared to June 2017 volume of 387,597,223. OCC’s year-to-date average daily cleared contract volume is up 22 percent with 21,012,628 contracts compared to 17,174,603 contracts in 2017. /jlne.ws/2z6bg8U ++++ June 2018 Options Exchange Marketshare via OCC ++++ July 4: Which markets are closed? Leia Klingel – Fox Business July 4 falls midweek this year, which means trading volumes could be lower than usual for…

Trump-Iran Showdown and Oil Options; Need a CAT “Tsar”; 3% Bond Yields Newsletter,Options

Lead Stories Trump-Iran Countdown Finds Investors More Bearish in Oil Options Todd White and Alex Longley – Bloomberg Volatility has jumped for both bullish and bearish options; Demand for protection against a slump rose in recent days In the hours before President Donald Trump announces to the world whether he pulls the U.S. out of the Iran nuclear agreement, bears are driving the oil options market. /goo.gl/tRJujV ****SD: Sources are reporting he’ll leave the accord. CAT ‘Tsar’ May be Required to Break Gridlock James Rundle – WatersTechnology Regulators may need to step up their efforts to push forward on the…

Financial fragility rising; Clayton “not happy” with CAT delay; VIX action Newsletter,Options

Lead Stories Goldman Sees ‘Financial Fragility’ Rising in Markets Joanna Ossinger – Bloomberg Early-February VIX spike might be a symptom of a larger issue; There are reasons to believe ‘liquidity is the new leverage’ Markets are becoming their own worst enemies, according to Goldman Sachs Group Inc. The stock-market rout in early February that caused a spike in the Cboe Volatility Index is a symptom of growing “financial fragility,” or big swings in prices caused by breakdowns in markets themselves as opposed to changes in fundamentals, an economist at the bank wrote Monday in a note to clients. To make…

An Update on the Consolidated Audit Trail Regulation & Enforcement,Video,video

At STAC’s 92nd Annual Mid-Winter Meeting, JLN spoke with Shane Swanson, chief compliance officer with Thesys CAT LLC, about the state of the Consolidated Audit Trail (CAT). The CAT will be a large trade data repository for options and equities used for surveillance and tracking. Thesys CAT is the recently formed subsidiary of Thesys Technologies tasked with developing the CAT. The plan was intended to go live in November 2017, but as the date neared, the SROs put in a one year exemptive request. While the SEC has not granted the request, it did agree to work toward a new…

Bitcoin issues; No CAT Delay; Goldman ready for vol Newsletter,Options

Observations & Insight The Bitcoin Exchange That CME Plans to Use for Futures Is Down Camila Russo – Bloomberg This is exactly what the bitcoin futures naysayers have been warning about: One of the exchanges which CME Group Inc. would use to price the contracts is having serious issues. jlne.ws/2AIefQY ****SD: Not good. But this is partially why CME gathers pricing data from multiple other trading platforms – GDAX, itBit and Bitstamp. Here’s the methodology for CME’s CF Bitcoin Reference Rate (BRR) and CME CF Bitcoin Real Time Index (BRTI). To understand how a “down exchange” dynamic can play out,…

Potential CAT Delay; Whistleblowers Blow Whistle on SEC Watchdog; EU ICO Warning John Lothian Newsletter,Newsletter

First Read Hits & Takes By JLN Staff CME Group’s October Options Review included the fact that a record 57% of Natural Gas options (LN) traded electronically last month, with record electronic ADV of 64K contracts/day. Other highlights included record open interest in Treasury options, E-mini Russell 2000 Index options are gaining significant traction, relationship-based trading is expanding to all Ag options effective January 8, 2018, copper options continue to reach new records of open interest and Wednesday Weekly FX options are now trading!~JJL Asia Pacific Financial News for November 10, 2017.~JJL @JohnLothian has not tweeted more than 70,000 times.~JJL…

Talk of CAT Delay; Bond vol shows signs of life; Investors fearless Newsletter,Options

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…

Record low VIX close; CAT delay?; Swaptions clearing Newsletter,Options

Lead Stories VIX Closes at Another Record Low Gunjan Banerji – WSJ The CBOE Volatility Index, or VIX, hit a record low on Thursday, extending an historic calm streak as stocks reached new highs. The stock volatility index fell to 9.19, closing below 10 for the seventh consecutive day. The VIX’s prior low was 9.31 in December 1993. jlne.ws/2fUBvGn ****SD: CBOE started offering the 8.5 strike on the VIX on Tuesday. Woof. CNBC on the VIX action here. Trading Database Could Be Delayed Due to Data-Security Hitches Dave Michaels – WSJ U.S. exchanges overseeing the creation of a vast database…