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Tag Archives: CBOE

JLN Options: CBOE Introduces The CBOE Mid-Term Volatility Index; Stocks could see new volatility in 2014; Better hedging seen with local volatility indices Newsletter,Options

Observations & Insight In honor of the US holiday on Thursday (“Premature Shopping Day” – or, as it used to be called, “Thanksgiving Day”), John Lothian News will be closed, and that means no newsletters. But never fear, on Friday JLN, JLN Options and JLN Financials will be back in action. Meantime, to those of you who have a day off, our best wishes for the holiday! PS: Options editor Jeff Bergstrom is at home cooking furiously in anticipation of hosting his family tomorrow. He will also be out Friday convalescing after said hosting duties. Editor-at-large Doug Ashburn is filling…

Small Cap Splash: Russell’s Pat Fay Talks About CBOE’s Latest Volatility Contract Interview,Options,Video

Pat Fay

The CBOE Volatility Index futures, or VIX, has been THE most successful futures contract in recent years. With the VIX posting record volumes this year, the exchange and Russell Indexes say now is the time to launch the Russell 2000 Volatility Index futures or RVX. John Lothian News sat down with Russell Investment’s Pat Fay to talk about RVX and its potential, especially versus other indexes like VIX and the European volatility index VSTOXX. Fay says the appetite for a small cap stock volatility futures is strong, especially among money managers looking to incorporate volatility hedges into their portfolios. “Clients…

John Lothian Newsletter: CBOE to take time extending VIX options trading hours; Asian exchanges tap derivatives demand; Borsa Istanbul CEO Says Nasdaq OMX May Buy Exchange Stake John Lothian Newsletter,Newsletter

First Read Proposed Rule Limits Size of Commodities Traders’ Positions ALEXANDRA STEVENSON – NYTimes.com In 1979, Nelson Bunker Hunt and William Hunt famously bought up as much silver as they could in the commodities market. By the time they were done, the brothers had acquired more than a third of the world’s supply of silver, sending the price of the precious metal soaring. Citing the Hunt brothers’ attempt to corner the market more than three decades ago, the Commodity Futures Trading Commission on Tuesday voted 3 to 1 to limit the size of any trader’s footprint in the commodities market….

Another Day, Another Glitch Commentary,Options

SEC

Actually, there were two unrelated glitches in the options market today, and one yesterday. First, ISE had a technical issue in a software configuration interrupted its price feed into OPRA this morning. Around this same time, the CBOE’s benchmark volatility index experienced erratic price gyrations on three separate occasions. Yesterday’s data feed disruptions at NASDAQ, it turns out, resulted from a “human error” related to an operational function. Coincidentally, yesterday morning WSJ’s Paul Vigna commented on how common such technical failures are, and how little impact they have on the markets. (See: “Exchange ‘Glitches’ Are a Feature of the System,…

JLN Options: ICE postpones date of purchase of NYSE, Options Market Hit With Data Disruptions as VIX Lurches Newsletter,Options

Observations & Insight Another Day, Another GlitchJohn Lothian News Actually, there were two unrelated glitches in the options market today, and one yesterday. First, ISE had a technical issue in a software configuration interrupted its price feed into OPRA this morning. Around this same time, the CBOE’s benchmark volatility index experienced erratic price gyrations on three separate occasions. Yesterday’s data feed disruptions at NASDAQ, it turns out, resulted from a “human error” related to an operational function. Coincidentally, yesterday morning WSJ’s Paul Vigna commented on how common such technical failures are, and how little impact they have on the markets….

Getting Shorter: CBOE’s Ed Tilly Introduces Short-term VIX and Industry Taxes Interview,Options,Video

Ed Tilly

It has been half a year since Ed Tilly took over as CEO of the CBOE from Bill Brodsky, who moved to the newly created role of executive chairman. WATCH: Taking the Reins: CBOE’s Ed Tilly Makes The Transition to CEO With six months under his belt, John Lothian News Publisher John Lothian sat down with him to talk about his new job, new initiatives from the CBOE and the challenges facing the industry. In Part 2 of this interview, Tilly talks about the CBOE extending the VIX trading hours to access trading from European traders and how he expects…

Taking the Reins: CBOE’s Ed Tilly Makes The Transition to CEO Interview,Options,Video

Ed Tilly

Ed Tilly has moved easily over the last few years from the highest ranking member of the CBOE and vice chairman, to executive vice chairman, then president and chief operating officer, and now CEO.   WATCH: Getting Shorter: CBOE’s Ed Tilly Introduces Short-term VIX and Industry Taxes Tilly sat down in a CBOE conference room with John Lothian News publisher John Lothian to discuss his transition to CEO six months after taking the exchange company’s executive reins.  We asked him about the transition from Bill Brodsky being CEO to him taking over and Brodsky’s continuing role in the company.  …

JLN Options: Look Out Vix, Treasury Volatility Falls on Speculation Fed to Maintain Policy, Implied Volatility and the Debt Ceiling Crisis Newsletter,Options

Lead Stories Look Out Vix, Here Comes a New Way to Measure Volatility Yahoo! Finance Scott Nations, founder and CIO of NationsShares has a new product coming that he says is a better tool for tracking volatility and the way people on Wall Street really think of it. VolDex is an exchange he’s created that strips away the more obscure derivatives and measure the meat and potatoes options linked to the S&P 500 itself using the SPDR ETF. http://jlne.ws/1akON4q***DA: I am dying to know how measuring the volatility of meat and potatoes will help me gauge the market. Treasury Volatility…

JLN Options: CME Sees Record Volumes in WTI-Brent Crude Oil Spread Options, Deutsche Bank Launches Trading Platform for U.S. Equity Options, Completion of FINRA’s Analysis of Submitted Claims Pertaining to Facebook IPO Newsletter,Options

Observations & Insight CBOE will begin its expanded trading hours on Monday, October 28th for the CBOE Volatility Index futures. The longer day is aimed at attracting more overseas trading by adding 5 hours and 45 minutes to the trading day in two phases. The initial start of October 21, was postponed due to the government shutdown. Here is the schedule from CBOE: · Fifteen minutes after the 3:15 p.m. (Chicago time) close of VIX futures, the market will reopen for a new trading period from 3:30 p.m. to 4:15 p.m. (Chicago time). Trading will then resume at 7:00 a.m….