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Tag Archives: CBOE

JLN Options: Options leaders opposing tax reforms and transaction tax Newsletter,Options

Commentary & Insight Options leaders opposing tax reforms and transaction taxBy Jim Kharouf Options exchange leaders at the Options Industry Conference in Las Vegas voiced strong opposition to proposed tax reform and transaction tax proposals. Steve Crutchfield, who heads NYSE Arca and NYSE AMEX, said that the proposal at tax reform would issue a tax on regular retail investors who are looking to cover their stock positions. The 60/40 tax treatment is also under fire, under the proposal. Crutchfield said that the proposal is “a severe deterrent to investors to manage their risks.” “Just buying some downside protection while I…

John Lothian Newsletter: Regulators see risks from exchange technology; CBOE identifies software glitch that halted trading; CME, ICE rivalry enters biofuel arena John Lothian Newsletter,Newsletter

Federal regulators, in a report that was prepared before yesterday, outline technology and platform risks as being significant to the health of the financial system. Yesterday, CBOE became the latest of many companies to highlight that trading on electronic systems is not 100 percent guaranteed. In the energy sector exchanges CME Group and ICE prepare to go head-to-head with new biofuels contracts.

JLN Options: CBOE Reopens After Malfunction Shuts Options Exchange Newsletter,Options

Lead Stories CBOE Reopens After Malfunction Shuts Options ExchangeNikolaj Gammeltoft, Nina Mehta & Lu Wang, BloombergThe Chicago Board Options Exchange opened for trading three-and-a-half hours late today after a software malfunction shut the derivatives market as its top executives were away at an industry event in Las Vegas.http://jlne.ws/14T3jyj CBOE Holdings Statement on Today’s Trading Issue Press Release (CBOE – full text)CHICAGO, IL, April 25, 2013 — CBOE Holdings, Inc. (NASDAQ: CBOE) statement regarding this morning’s trading issue: This morning, a system issue delayed the opening of options trading at Chicago Board Options Exchange (CBOE) from 8:30 a.m. until 11:50 a.m….

JLN Options: CBOE May Retire From Police Beat Newsletter,Options

Lead Stories CBOE May Retire From Police Beat  Jacob Bunge, The Wall Street JournalThe parent of the Chicago Board Options Exchange is considering whether to separate out its regulatory division in the wake of a continuing federal probe into potential conflicts of interest, people close to the discussions said.http://jlne.ws/11i2yIx What a ‘Global’ Market Does When AP’s Twitter Account is HackedBrendan Conway, Barron’sThe AP’s hacked Twitter account erroneously reports an explosion at the White House. The Dow drops more than 100 points instantly. Then it swiftly recovers after people realize nothing bad has happened:http://jlne.ws/15EHgec CME Group Mistakenly Revealed Swap Trades to Market…

John Lothian Newsletter: CBOE May Retire From Police Beat; CFTC’s Gensler Says Libor Should Be Ditched; Bankers play to win in regulatory scrimmage John Lothian Newsletter,Newsletter

Exchange company CBOE contemplates separating its internal regulatory division into an independent entity. The CFTC’s Gary Gensler says it’s time to say goodbye to LIBOR; meaning, really, it’s time NOW to say goodbye. The US and the EU’s central bankers express more unease over potentially conflicting efforts to bring economic stability to their respective regions.

CBOE 40 Is Quite a Journey Commentary,Options,Tech / HFT

Jim Kharouf

April 26th marks the 40th anniversary of the Chicago Board Options Exchange. While that makes it a mere youngster among Chicago exchanges, it is the pioneer that kicked off the equity options exchange industry in the United States in 1973 that is now global. CBOE is also celebrating a few other notable birthdays this year as well – 30 years for the S&P 500 and S&P 100 or OEX, and 20 years of the CBOE Volatility Index, or VIX, which became a tradable futures product in 2004. Pretty nice round numbers for an exchange that ended 1973 with about 1.1…

JLN Options: Options volume on expiration light due to Boston lockdown Newsletter,Options

Lead Stories Options volume on expiration light due to Boston lockdownAngela Moon and Doris Frankel, ReutersOptions trading volume on Friday was unusually light as much of Boston, a major U.S. financial center, was under lockdown as police hunted for a suspect in Monday’s Boston Marathon bombings.http://jlne.ws/12t3yfE**Obviously, the options volume was not the tragedy here. A very sad time for Boston and for all of us. — SR Credit Suisse Embraces the Dark Side of TradingNathaniel Popper, DealbookThe debate over dark pools — private, electronic stock trading platforms — may get more murky.Credit Suisse, the operator of the nation’s largest dark…

JLN Options: Options Week in Review Newsletter,Options

A recent Tabb Group report found that high-frequency trading is dominating US options trading, and that keeping up with the pace of technology in a climate of tight budgets and low trading volumes is becoming too difficult for many firms.  The industry is transforming as smaller “mom and pop” market making firms disappear. The CBOE VIX, known as the “fear index,” is up 30% this month, but a chart shows that longer maturities through September have barely budged, leading Susquehanna Financial Group’s Chris Jacobson to conclude that the VIX spike is just a blip rather than a longer term trend,…

JLN Options: Despite Gold Selloff, Options Traders Bank on Rebound Newsletter,Options

Lead Stories Despite Gold Selloff, Options Traders Bank on ReboundCarolyn Cui, The Wall Street JournalSo gold notched its biggest one-day drop in 30 years. What’s next?Despite the heavy losses, broken technical levels and waves of margin calls, the options market for the yellow metal is beaming with optimism.http://jlne.ws/15dptKq Gold Options: Graphical description of the price slumpOle Hansen, TradingFloor.comThe biggest two-day sell-off in 30 years has triggered some major moves in gold options. Implied volatility has surged, with the cost of downside protection rising the most. Implied volatility has almost doubled after rising to almost 29 percent, which in a near-term…