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Tag Archives: CBOE

Traders to get VIX advisory notices; Exchange stats; More liquidity concerns Newsletter,Options

Observations & Insight Joe O’Neill, New York Commodity Exchange(s) Executive, Passes Away By John Lothian Longtime New York commodity exchange executive Joe O’Neill passed away on August 4, 2018 at the age of 74. This plain statement tells little of a life lived in the most colorful of times in New York commodity exchange history or a career that included launching the first financial futures (before CME/IMM by 2 years), the creation of the Dollar Index Contract (with the help of Paul Tudor Jones) and being the consultant for the futures trading aspects of the script of the hit movie…

OCC Clears the Path to Greater Capital Efficiencies for Clearing Firms in U. S. Exchange-Listed Options Markets Newsletter,Options

Observations & Insight Trump’s trade ‘extortion’ won’t work, China state media says Andrew Galbraith, Michael Martina – Reuters Chinese state media on Monday lambasted U.S. President Donald Trump’s trade policies in an unusually personal attack, and sought to reassure investors anxious about China’s economy as growth concerns battered its financial markets. /jlne.ws/2OKbxSy ****SD: Also see CNBC’s Beijing is more worried about domestic issues than its trade war with Washington, research firm says and Bloomberg’s chart recap Here Are the Shots Fired So Far in U.S.-China Trade War Lead Stories OCC Clears the Path to Greater Capital Efficiencies for Clearing Firms…

Equity options transparency; Funds That Seek to Hedge the Next Correction Newsletter,Options

Lead Stories Equity Options Transparency: What You See May Not Be What You Get Larry Tabb and Alicia Reilly – TABB Forum With no dark pools, hidden trades, or internalization schemes, and with each execution hitting the tape posted on a licensed and regulated exchange, we love to talk about how transparent the equity options markets are. This has helped propel option volumes to grow to well over 15 million contracts a day in May 2018 as retail customers and firms continue to enter the space. With 15 exchanges and multiple pricing models (some even on the same exchange), however,…

OCC Financial Safeguards Framework Approved by SEC Newsletter,Options

Observations & Insight The Spread – Rimshot Please – 7/27 JohnLothianNews.com We’ve added more props for this week’s episode of “The Spread” for your viewing pleasure! Watch the video and see the stories referenced here » ++++++ Monday Miscellany Spencer Doar – JLN Russell Rhoads has left the Cboe after a decade with the exchange and starts a new role today with the TABB Group. Priceonomics posted a blog about which companies in the S&P 500 generated the most revenue per employee (RPE) in 2017. 13 of the top 20 companies belong to the energy sector – Valero is #1…

Senate Version of Options Markets Stability Act; Caution Hits Options Markets; Millennial FB trader Newsletter,Options

Lead Stories Cboe Global Markets Announces Senate Version of Options Markets Stability Act Cboe Cboe Global Markets, Inc., one of the world’s largest exchange holding companies, announced that Senator Mike Rounds (R-SD) and Senator Tammy Duckworth (D-IL) today introduced S. 3283, The Options Markets Stability Act. bit.ly/2uX1m4Q ****SD: The speed at which this is moving along is encouraging. Caution Hits Options Markets as Liquidity Fears Flare Gunjan Banerji – Barron’s Major U.S. stock indexes have vaulted higher this week—at least until Facebook’s earnings-related plunge jolted the Nasdaq Composite—but the options market is signaling caution. An upbeat earnings season, with the…

Facebook braces for stock wipeout as lower margins loom Newsletter,Options

Observations & Insight Mini-Manipulation Miscellany Spencer Doar – JLN Some of you are probably on the Security Traders Association mailing list. Tuesday’s email discussed FINRA’s surveillance priorities when multiple products are involved. The note is of particular interest for options market participants as the two key areas of focus mentioned are mini-manipulation and anticipatory hedging. The former involves trading a stock in order to benefit its options’ pricing and a common example of the latter is a broker front-running a customer order. (The note is worth a look just for the access to the archival PDF of the SEC’s 1978…

New Cboe VIX case; Market maker tech spend; Virtu in Japan Newsletter,Options

Observations & Insight 10 Years of PHLX @ Nasdaq Spencer Doar – JLN The oldest stock exchange in the United States hit another milestone – the Philadelphia Stock Exchange (PHLX) celebrated its 10-year anniversary as a part of the Nasdaq family on July 24. While the ’07-’08 timeframe is best remembered in financial circles as the time of “bailout this” and “subprime that,” it was a transformational period for non-crisis reasons at Nasdaq. Nasdaq purchased PHLX – founded in 1790 as a venue for bond trading – for $652 million in 2008. At the time PHLX was the third largest…

Asset owners, fearful of volatility, flock to risk mitigation strategies Newsletter,Options

flock geese

Observations & Insight Options Exchange Stats in June – Some Highlights Spencer Doar – JLN OMX PHLX, Cboe and MIAX led all exchanges in percentage of time spent at best bid/offer AND greatest size, according to Tabb’s Options Liquidity Matrix, coming in at 23.3 percent, 17.5 percent and 13.4 percent, respectively. The top three ranking changes when you remove greatest size and just focus on percentage of time at best bid/offer. Then the top three are BATS BZX, NYSE Arca and Nasdaq, with 81.3 percent, 73.3 percent and 71.4 percent, respectively. The lead exchanges in terms of average contract size…

Another Volatility-Linked Exchange-Traded Product Bites the Dust Newsletter,Options

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Observations & Insight Richard Elden, Innovative Hedge Fund Investor, Is Dead at 84 Matt Phillips – NY Times Richard Elden, a journalist-turned-investment manager who was an early investor in a number of notable hedge funds, died on June 27 at his home in Chicago. He was 84. /nyti.ms/2JtuJAh ++++ Theresa May’s steely warning to Tory rebels AND those bully boys from Brussels Daily Mail Online Our Brexit deal for Britain seizes the moment to deliver the democratic decision of the British people and secure a bright new future for our country outside the European Union. /dailym.ai/2Lnqk3u ****SD: This editorial from…