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Tag Archives: CBOE

John Lothian Newsletter: Bats CEO Scuttled IPO on Potential for Erratic Trading; Alliances offer solution for exchanges; E-Mail to Corzine Said Transfer Was Not Customer Money John Lothian Newsletter,Newsletter

BATS Exchange dominates the news today, with stories covering the Friday fault and subsequent IPO withdrawal, the letter from CEO Joe Ratterman, and analysis about the company’s next steps. As exchange mergers fail to complete, international alliances may be a better way to expand and solidify market share. An email to MF Global’s ex-CEO Jon Corzine regarding a late-October customer funds authorization, is now revealed to have told Corzine that the funds were NOT related to customer funds. The CBOE and ISE draw lawyers at ten paces and begin a battle over ISE’s Max SPY product, which CBOE says violates…

John Lothian Newsletter: Bats IPO Makes Exchange Built by Wall Street Public; CFTC rule sounds death knell for FIA-Isda trilateral give-ups; Volcker Says U.S. Needs Reforms in Finance, Government John Lothian Newsletter,Newsletter

BATS exchange issues its IPO today. Recent CFTC rules prevent dealers and clients from using a standardized clearing model proposed by the FIA and ISDA. Paul Volcker, in a speech yesterday, reiterated calls to reform financial and governmental systems. It was a sleepy news day, but the top box today is bursting with fresh content: commentary by Sarah Rudolph of JLN Options exploring the value of CBOE’s new VIX of VIX; a MarketsWiki.TV interview with Tom Callahan of NYSE Liffe US; an interview from HFT Review with Leo Melamed; and a sharp analysis of Dodd-Frank by Merton-Sholes via OpenMarkets.

Is a VIX of VIX Too Many Derivatives? Blog


Last week at the FIA conference in Boca Raton, the Chicago Board Options Exchange announced a new CBOE VIX of VIX Index (VVIX) that measures the volatility of the CBOE Volatility Index (the VIX index). The VIX index itself is a measure of the market’s expectation of future volatility implied by the prices of options on the S&P 500 stock index. Who are the likely users of the index? Anyone who trades volatility products or watches the VIX index, according to Catherine Shalen, director, research and product development, for CBOE. “It is a natural offshoot of the VIX; it uses…

Mark Esposito of OneChicago Discusses Their NoDivRisk (“1D”) Single Stock Futures Interview,Managed Futures,Video

Mark Esposito, a 25-year trading veteran on the floor of the Chicago Board Options Exchange (CBOE), is the managing director, business development at OneChicago. John Lothian News Editor-at-Large Doug Ashburn spoke with Esposito about OneChicago’s NoDivRisk (“1D”) Single Stock Futures products and how commodity trading advisors and managed futures funds can use them.

John Lothian Newsletter: CME Group, LCH.Clearnet offer new margining solutions; ASX Chairman Gonski to Step Down, Manage Australia SWF; SGX Adds Trading Hubs in London, Chicago John Lothian Newsletter,Newsletter

CME Group (on Tuesday) and LCH.Clearnet (on Wednesday) each debut new solutions to allow clients to margin their positions in a more cost-effective way. The chairman of the ASX quits his job to take on a new role of managing a big chunk of Australia’s sovereign wealth fund. SGX teams up with Eurex and NYSE Technologies to interconnect trading networks. In today’s super-heavyweight Boca edition of the JLN, you’ll also find stories about Walt Lukken as a plumber; analysis of the effects of MF Global on the futures industry; major new product and service offerings from CBOE, Trading Technologies, ISE…

John Lothian Newsletter: MF Global Still Set to Pay Bonuses; CBOE Executive Placed On Leave During SEC Investigation; LSE buys majority stake in LCH.Clearnet John Lothian Newsletter,Newsletter

MF Global’s bankruptcy plan includes significant bonuses for three senior execs of the firm. At the CBOE, a compliance executive has been placed on administrative leave as the SEC investigates company oversight. The London Stock Exchange steps up to buy a majority stake in LCH.Clearnet. In Europe, Greece successfully winds up its debt cycle with murmurs of impending doom rather than cheers.

John Lothian Newsletter: CBOE Tweaks Electronic S&P Options Market To Spur Growth; EU Leaders Sign Fiscal Pact; ISDA’s Greek Ruling Not Last Word John Lothian Newsletter,Newsletter

CBOE rolls out changes to its S&P options, hoping that the shifts will give a boost to the interest in those products. EU leaders sign a new agreement to be more careful with their money and their debt, with some countries already clearing their throats about financial difficulty ahead. Several people point out that the ISDA’s no-credit-event ruling yesterday regarding Greece’s debt and default was a specific answer to a specific question, not an “all clear” for the whole situation, and the falling financial piano is still whistling down from overhead. It being the start of a new month, you’ll…

John Lothian Newsletter: State Street plans OTC derivatives platform; NYSE, Deutsche Boerse Set To Vie For Technology Business; CBOE to List Futures on Brazil, Oil Volatility Indexes John Lothian Newsletter,Newsletter

State Street announces that they plan to start up an OTC swaps trading platform, to go along with a previously-announced swap clearing facility.  NYSE-E and DB, no longer trying to live under the same roof, re-engage as competitors with a focus on trading technology and services.  CBOE announces plans to list volatility index products for Brazilian stocks and oil.  In ongoing stories, the dig into LIBOR-fixing continues to produce results; Volcker is still a household word; and MF Global’s bankruptcy trustee agrees to share nicely with others. In the top box, John Lothian unveils his latest plans for world travel,…

John Lothian Newsletter: CFTC Requires Registration by Mutual Funds With Commodities; NYSE Euronext Chief Faces Up To Standalone Challenges; Eurozone dismisses Greek budget deal John Lothian Newsletter,Newsletter

The CFTC votes 4-1 to require commodity-including mutual funds to register with the agency. NYSE-E’s Duncan Niederauer faces a DB-less future, and surveys the coming challenges. In the latest episode of, “There Will Be Greece,” the Eurozone turns its back to the Mediterranean country’s latest budget cut package, calling it incomplete. In the top box, JLN Editor-in-Chief Jim Kharouf takes a swing at JLN Boss-of-All John Lothian’s opinion of CME Group’s CBOT Building deal; and John bids adieu to Jeremy Grant of the Financial Times (who is only moving to Singapore, not offworld).