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Tag Archives: CAT

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…

Options Imply Little Risk of Market Correction; SEC Weighs How to Protect CAT; ECB’s power over clearing Newsletter,Options

Lead Stories Options Imply Little Risk of Market Corrections Anytime Soon Myron Scholes and Ash Alankar – Bloomberg A watchful Federal Reserve has created a buoyant environment for equities. The S&P 500 Index is on course for its least volatile year since 1964. On top of that, anticipated volatility as measured by the Chicago Board Options Exchange Volatility Index, or VIX, is near historical lows. jlne.ws/2xYLQax ****SD: “Options are signaling that this is not the time to take exaggerated risks because of a lack — if any — of upside potential, rather than out of concern about the possibility of…

Dark Trading Could Triple in Europe; SEC Defends CAT Plan After Hack; Regulatory ‘false choice; John Lothian Newsletter,Newsletter

First Read Hits & Takes A KISS Goodbye In case, you missed it, (and we did), the deadline for Project KISS from the CFTC ended on September 30th. If you want to see who said what about whatever can be improved on Dodd-Frank, all comment letters can be found here.. Among the names included on the KISSing contest were CME Group, which had a number of proposed rules it found problematic, including the Reg AT and position limits rule, not to mention liquidity resources which somehow do not count US Treasuries. Good reading, and only 37 pages for Christopher Kirkpatrick,…

Markets as Guinea Pigs (and Other Notes from STA’s 84th Annual Market Structure Conference) Blog,Commentary,Feature,Regulation & Enforcement

The STA’s 84th Annual Market Structure Conference was held in Washington D.C. last week and its theme was “The Challenge of Change.” SEC Commissioner Michael Piwowar was the first in the spotlight, highlighting those challenges which would be discussed over the course of the conference — the plight of ma and pa investors (now dubbed Mr. and Mrs. 401(k) courtesy of Commissioner Jay Clayton’s comments), capital formation for small and mid-cap companies and an array of regulatory qualms pertaining to the Consolidated Audit Trail (CAT), MiFID II and pilot programs.   The decrease in IPOs and inflated stock prices among…

Thesys vs. Goliath: That’s One Big CAT Commentary,Feature,Fintech,Regulation & Enforcement

Small company wins big with opportunity to build the Consolidated Audit Trail covering U.S. equities and options. FINRA, FIS, Cinnober, Thomson Reuters – what do they have in common? They are just a few of the 30 bidders who lost out on developing the Consolidated Audit Trail (CAT) to Thesys Technologies LLC, a subsidiary of the proprietary trading firm Tradeworx, founded in 2009. To develop and implement the CAT, Thesys partnered with IBM (which was a bidder on its own, too), as well Rosenblatt Securities and law firm Latham & Watkins. “You had some big tech companies that really understand…

The CAT Scratches: Fees for Options Exchanges Blog,Options

I saw a MIAX press release about Consolidated Audit Trail (CAT) fee disputes and it got me thinking why there would be reason for dispute. Please note, I don’t know if the following is on any exchange’s collective mind, but it seems like point of contention. I’ll set the table with this stat from a Reuters story earlier this month – “Options execution venues with more than 1 percent of industry volume will pay $57,615 per quarter and those with less than 1 percent will pay $39,612 per quarter.” “Per venue” means per medallion/exchange. That means that MIAX would pay…