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Tag Archives: CBOE

Cboe Letter on Improving VIX Settlement Process; Matrix Executions’ High Touch Trading Desk for Options Newsletter,Options

Lead Stories Letter from Cboe CEO Ed Tilly and President Chris Concannon regarding VIX activity Cboe Over the past 25 years, the Cboe Volatility Index (VIX) has become the leading, global indicator of market volatility for the marketplace. It could only achieve this status through the support of our Trading Permit Holders and their customers, other market participants, our clients and investors. /goo.gl/Jr95w3 ****SD: More on this from a couple of sources below, but if you want a TL;DR – Cboe is working to make the VIX settlement better but does not acknowledge any manipulation. A longer TL;DR – Cboe…

It’s a Scary Time to Be Trading Wall Street’s Fear Index Newsletter,Options

Observations & Insight Cybersecurity and Technology Upgrades – John Davidson, OCC JohnLothianNews.com The OCC is in the process of making what is a big decision for a systemically important financial market utility (SIFMU) – how to best upgrade a tech stack responsible for clearing millions of options and futures contracts daily. In this video from JLN’s annual series with industry leaders, OCC President and Chief Operating Officer John Davidson talks about how the OCC is weighing its cloud vendor options, addressing cybersecurity concerns and the regulatory initiatives on the road ahead. Watch the video and read the rest here »…

VIX settlement surge; Reinventing equity collars; Melt-up elation for volatility gauges Newsletter,Options

Observations & Insight The Week Thus Far – In Case You Missed It Spencer Doar – JLN MIAX plans to launch its third exchange, MIAX Emerald, in Q1 2019. Cboe announced it would begin disseminating a one year VIX calculation (VIX1Y) and that it is “exploring the development of a futures contract” on that index. Speaking of the VIX, it took a stroll south of 15 yesterday. Then this morning – settlement time – it went on a 30 minute run from 15ish to 17, again bringing up talk of manipulation. See the lead Financial Times story below about that…

MIAX Announces New Exchange; Cboe’s New 1-yr VIX; Strong options volume Newsletter,Options

Observations & Insight MIAX Sees Green Spencer Doar – JLN The Spread episode linked to below is already missing big news! The 15 exchange-strong U.S. equity options market is getting another younger sibling from the same group – MIAX – that brought the market its 15th exchange. Named Emerald (see what they’re doing here?), the exchange is scheduled to open in Q1 2019 and will “fill a market structure niche not currently offered by the MIAX Exchange Group.” This is yet another step in MIAX’s ever-increasing presence in the options space. According to the monthly Options Liquidity Matrix (link in…

The Spread – Week of 4/9 to 4/13 and 4/16 Video,video

Don’t be confused! The plaintiff in the Cboe VIX manipulation suit is named Spencer, but has nothing to do with the host of “The Spread.” That, and more, gets cleared up in this week’s options news recap.  The following are stories referenced this week:  Crain’s Chicago Business – How the wrong bet on market volatility annihilated this mutual fund Class Action Complaint, Northern District of Illinois – Bueno vs. Cboe Financial Times – How a volatility virus infected Wall Street PRNewswire – MIAX Options and T3 Index to Launch SPIKES Volatility Index; Proprietary Products to Follow on MIAX Exchanges Business Insider –…

FINRA Sweeps BDs for VIX-Linked Products Info; Earnings Season Catalyst to Crush Volatility Again Newsletter,Options

Observations & Insight Treasury Pushing For Capital Rule and Volcker Changes Jim Kharouf – JLN The US Treasury Department is addressing capital intensive rules that have constrained market participants from capital markets to community banks under the Volcker rule. Craig Phillips, counselor to US Treasury Secretary Steven Mnuchin, speaking at the WFE IOMA conference in Chicago last Friday, said the department is looking at a variety of issues and challenges for market participants, ranging from restrictive leverage ratios and how those are calculated, to easing restrictions on banks and institutions in the capital markets to promote liquidity, to changes in…

How a volatility virus infected Wall Street Newsletter,Options

virus

Lead Stories How a volatility virus infected Wall Street; The collapse of a few small funds in February helped fuel a terrifying stock-market slide. Why? Robin Wigglesworth – Financial Times Music teacher Chris Pomrink was driving between two lessons outside Philadelphia, when a friend called with some distressing news: “Hey Chris, XIV is in trouble.” Pomrink, 30, checked his trading account. It was February 2 and XIV — an arcane, fiendishly complex financial security that he had sunk $2,500 into earlier that week — had indeed taken a beating. The “exchange-traded note”, or ETN, which allowed traders to bet on…

Cboe lawsuit; Background on LJM losses; Vol to stay? Newsletter,Options

Observations & Insight Access-Fee Pilot: Fewer Fees, More Fragmentation? Rob Daly – MarketsMedia The access-fee pilot proposed by the U.S. Securities and Exchange Commission may increase fragmentation in the equity markets as Cboe Global Markets considers launching two additional order books to offset the pilot’s fee caps and prohibitions. “We have six exchanges, but we use four for equities and four for options,” said Chris Concannon, president and COO of Cboe, during the National Security Traders Association’s 2018 Market Structure Symposium in Chicago. “I promised the industry previously that we would not light up those books, but with the access-fee…

Volatility Is Back. Scarred ETF Investors Aren’t Newsletter,Options

Lead Stories Volatility Is Back. Scarred ETF Investors Aren’t Asjylyn Loder – WSJ Exchange-traded products that enable investors to profit from wild price swings in stocks are enjoying big gains this year. But retail investors, who’ve been burned in the past by betting on volatility, are mostly steering clear of them. /jlne.ws/2v5pMvH Last commodities hedge funds go off beaten track Gregory Meyer – Financial Times Being a commodities hedge fund manager is an increasingly lonely pursuit. Specialists in fuels, crops and metals have been exiting and few new arrivals are taking their place. This class of traders once threw its…