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Tag Archives: CBOE

JLN Options: Traders Sue Options Exchanges Over Fees Newsletter,Options

Commentary & Insight CBOE Celebrates 40 Years Last night the CBOE held a star-studded panel discussion at the exchange and later a dinner at a Chicago hotel in honor of its 40 anniversary, the 30th anniversary of the index options and the 20th anniversary of the introduction of the VIX. Today, they will have their annual meeting and Bill Brodsky cede the CEO role to Ed Tilly and Mr. Brodsky will assume the role of executive chairman [transcript of the meeting is listed below under “Exchanges” -JB]. The panel discussion featured the President of Barron’s as the moderator, as well…

John Lothian Newsletter: Investment firms sue exchanges in dispute on improper fee charges; Finra Upgrades Surveillance; Rating agencies under fire again John Lothian Newsletter,Newsletter

A group of investment firms sue the CBOE, alleging improper fee assessment over a multi-year period. FINRA extends a new regulatory reach to stock trading platforms catering to high-frequency traders, and takes a closer look at dark pools. After earning jeers and criticism in 2008, credit rating agencies are taking fresh damage for their mis-estimation of the US housing market.

JLN Options: Last-Second Options Bet on Saks Raises Questions Newsletter,Options

Lead Stories Last-Second Options Bet on Saks Raises Questions Kaitlyn Kiernan, The Wall Street JournalOptions traders are raising questions about the timing of a set of last-minute trades in Saks Inc. Tuesday that stand to bring in huge profits following news the company may be exploring a sale. http://jlne.ws/184Wha7 IntercontinentalExchange CEO says lack of cross-border derivatives coordination ‘damaging’Megan Hickey, Medill News Service (via MarketWatch)The failure to harmonize the cross-border application of derivative rules “will be damaging,” according to IntercontinentalExchange Chairman and CEO Jeffrey Sprecher, who testified Tuesday on Capitol Hill at a hearing on the future of the Commodity Futures Trading…

JLN Options: Big Hedge Funds Suddenly Bullish Newsletter,Options

Lead Stories Big Hedge Funds Suddenly Bullish  Steven M. Sears, Barron’sA tectonic shift in the options market suggests that big money is now chasing the rally higher. Now bears get a discount.http://jlne.ws/12K47kL Equity options rebound in AprilFOWUS market growth has driven the most active April in US equity options history, indicating a possible upturn after a lack-lustre first quarter’s trading writes Jonathan Watkins.http://jlne.ws/14O5SNZ The VIX: It Could Get Ugly Soon  Adam Warner, Schaeffer’s Investment ResearchNow, there’s no law that says VIX has to move anywhere. Way back before anyone paid attention to VIX — like in the 90s — volatility didn’t fluctuate…

JLN Options: Jumbo SPY Options Start Slow Amid Industry Criticism Newsletter,Options

Lead Stories Jumbo SPY Options Start Slow Amid Industry Criticism Kaitlyn Kiernan, The Wall Street JournalAn effort to create jumbo-sized options linked to larger blocks of shares for the popular SPRD S&P 500 exchange traded fund is off to a rough start.The new contracts, launched by BOX Options Exchange LLC, represent an attempt to break Chicago Board Options Exchange’s lock on heavily-traded–and lucrative–options contracts tied to the Standard & Poor 500-stock index.http://jlne.ws/15Kl0QV Goldman may create own Bloomberg-like techMark DeCambre and Kaja Whitehouse, New York PostGoldman Sachs is mulling reducing its reliance on the ubiquitous Bloomberg LP terminals, The Post has learned….

JLN Options: Supreme Court Denies ISE Appeal On Index Options Dispute Newsletter,Options

Lead Stories Supreme Court Denies ISE Appeal On Index Options DisputeJacob Bunge and Brent Kendall, Dow Jones Business News (via NASDAQ)The U.S. Supreme Court has decided not to take up a long-running legal battle over an exchange’s right to trade lucrative options contracts linked to stock indexes.http://jlne.ws/16v3Y90**CBOE press release is below. -JB Low Volatility Is Depressing Options SellersTyler Craig, InvestorPlaceBarring the occasional spike to the high teens, the CBOE Volatility Index (CBOE:VIX) appears to have found a new home in the 12-14 zone this year.While the low-volatility regime settling over Wall Street might be applauded by bull market lovers, though,…

JLN Options: ISE Cancels Jumbo S&P 500 Options Debut on Liquidity Concern Newsletter,Options

Lead Stories ISE Cancels Jumbo S&P 500 Options Debut on Liquidity Concern Nikolaj Gammeltoft, BloombergBusinessweekInternational Securities Exchange, the second-biggest U.S. options market, withdrew plans to trade larger-size options on the SPDR S&P 500 ETF Trust (SPY) amid concerns the contracts may threaten market liquidity.http://jlne.ws/14aVjnJ Court Won’t Block Vote on NYSE and ICE DealPeg Brickley, Dow Jones Newswires (via Fox News)A Delaware corporate-law judge on Friday refused to block the merger of NYSE Euronext (NYX) and Intercontinental Exchange Inc. (ICE), dumping a challenge by shareholders who argued the deal was flawed.http://jlne.ws/14aZ1xT The Most Valuable Formula Ever CreatedAlex Planes, The Motley FoolOn…

JLN Options: Fear Gauge Sees Stock Volatility Abating Even Further Newsletter,Options

Lead Stories Fear Gauge Sees Stock Volatility Abating Even Further  Kaitlyn Kiernan, The Wall Street JournalThe spread between reality and expectations is widening.Lately, actual volatility in the Standard & Poor’s 500-stock index has been higher than the volatility implied by readings on the Chicago Board Options Exchange’s Volatility Index. The gap between the two metrics is the largest positive divergence between the two readings since December 2011.http://jlne.ws/10lgMpZ Bobcat Goldthwait Demonstrates VolatilityRussell Rhoads, CBOEThe industry standard for measuring market volatility is the CBOE Volatility Index better known as VIX.  One of the behaviors of VIX is that it tends to revert to…

JLN Options: CBOE expects to be fined by SEC for regulatory shortcomings Newsletter,Options

Lead Stories CBOE expects to be fined by SEC for regulatory shortcomingsAnn Saphir, ReutersCBOE Holdings Inc expects to be fined as much as $10 million to resolve a probe by federal authorities into its duties as a self-policing organization.http://jlne.ws/11TeLUj Option Player’s ‘Iron Condor’ Sees Range-Bound Dow Fund  Kaitlyn Kiernan, The Wall Street JournalAs the Dow looks set to finish above 15000 for the first time, one options trader set up an “iron condor” to bet the blue-chip index would remain range bound over the next seven weeks.http://jlne.ws/15q2JYX Dow Climbs Above 15,000 on Stimulus Optimism, EarningsInyoung Hwang, BloombergU.S. stocks rose, sending the…