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Tag Archives: Catherine Clay

FinTech Exchange: Clay on Innovating During CBOE’s Corporate “Middle Age” Feature,Options,Video,video

Albert Einstein published his theory of general relativity when he was 36. Vincent van Gogh painted Starry Night when he was 36, and Mozart wrote 626 works before dying one month before turning 36. The CBOE turned 44 in April. In that context, Catherine Clay, CBOE’s vice president of integration strategy and operations, addressed how a company that has reached middle age continues to reinvent itself. For her, two keys are process and partners. By process, Clay refers to the CBOE’s weekly software release cycle which begins each Sunday. “The weekly release schedule that is gospel not only gets new…

D is for Data: FinTech Exchange Blog,Commentary,Exchanges, OTC & Clearing,Feature,Fintech,Mwiki,Tech / HFT

The sold-out FinTech Exchange conference, hosted by Barchart, was largely about data – what to do with data, how exchanges are capturing new data and how to trade it. That, on its surface, isn’t particularly new. But the infrastructure to capture all kinds of data is now developed. The CME Group’s Julie Armstrong Menacho colorfully outlined how the exchange has migrated all of its historical data onto the cloud, giving customers greater access to it, along with a growing list of partners who provide alternative data sets like satellite images of oil storage facilities or social media sentiment. CBOE’s Catherine…

Tax-reporting Changes for Options Trading Commentary,Options

Catherine Clay

By Catherine Clay, CEO of Livevol No one ever said trading options was simple. Unfortunately, the same is true of tax treatment of options gains or losses. Fortunately (or unfortunately, depending on your point of view), new IRS regulations regarding options trading became effective on January 1, 2014. Starting with options purchased this year, your broker will have to report transactions to the IRS when you close the position, including your cost basis, and your short- or long-term capital gains or losses. Evidently, the provision was in response to a “tax gap” related to incorrect cost-basis information that the U.S….

Options – A Must Have in Every Advisers’ Toolbox Commentary,Options

Catherine Clay

By Catherine Clay, CEO of Livevol Yesterday, I wrote about the increase in option volumes from “Mom and Pop” traders. Today I want to note the increased trading volumes originating from independent option advisers. Before 2004, many advisers did not trade options, saying they were too expensive and complex. But recently, especially after 2008, adviser use has grown tremendously, spurred on by a greater understanding of options, lower transaction costs, tighter bid/ask spreads, and increased ease of execution.  Risk management, however, seems to be the primary driver for most advisers. That’s what the Options Industry Council (OIC) reported in a…

The Changing Face of “Mom and Pop” Traders Blog

Catherine Clay

By Catherine Clay, CEO of Livevol When Andy Nybo talks, I pay close attention. I’m sure I’m not alone because Andy, head of derivatives research at the TABB Group, delivers some great research. Some of his recent research concerns the rise of the individual retail trader, a subject covered in a recent Wall Street Journal article, “Mom and Pop Flock to Options Market.” Obviously, participation is the lifeblood of the options market. Data showing increased retail option trading is music to the ears. Andy’s research also dovetails into what we are seeing at Livevol. “Mom and Pop” traders are opening…

The Rise of the VIX ETP Blog,Options

Catherine Clay

By Catherine Clay – Livevol, CEO As the VIX heads toward the 20 mark, it is fitting to wish a Happy Birthday to two VIX ETPs: VXX and VXZ. These five-year-old volatility products made their debut in January 2009, and have generated a tremendous amount of investor attention and interest. As most JLN readers know, the VXX and VXZ provide exposure to equity market volatility through the CBOE VIX futures. VXX offers volatility exposure to a daily rolling long position in the first- and second-month VIX futures, while the VXZ focuses on the mid-term futures contracts. Since the introduction of these…

What the Skew Tells Us Blog,Options

Catherine Clay

EDITOR’S NOTE: We are pleased to have Catherine Clay, CEO of Livevol, as guest editor of JLN Options all this week.  We welcome her opinions and the information and look forward to her insights the rest of the week. It is a genuine pleasure to be guest editing the John Lothian Newsletter. I’m not sure how many West Coasters get this opportunity, and I am honored. The timing of my engagement is also fortuitous. Rather than be the editor when the markets are in a slow, steady rise and the VIX trapped in a tight range between 12 and 14,…