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Tag Archives: central clearing

Cohn Says Clearinghouses Could Create New Systemic Problem; EU and US agree to accept each other’s derivatives rules John Lothian Newsletter,Newsletter

First Read Hits & Takes Jenny Knott stepped down as CEO of NEX Optimisation. FIA is hiring two people for its communications department: a director of communications working with senior management to develop, implement and coordinate our overall press and public relations strategy and thought leadership; and a director of editorial services managing member and industry communications, the production of editorial content and the delivery of that content to multiple audiences across multiple channels. More information is available HERE.~JJL Registration is now open for CMC’s annual State of the Industry Conference in Miami Beach — January 28-30, 2018~JJL Asia Pacific…

Strong demand for Eurex’ factor index futures; CME opens Sydney office; Virtu to close Neonet John Lothian Newsletter,Newsletter

First Read Hits & Takes Students signed up for the MarketsWiki Education Recruiting event on October 16 at the CBOE have come from a number of different universities. The list includes University of Illinois at Chicago, Illinois Tech (formerly IIT), University of Chicago, DePaul University and Northwestern. We even have some from Georgetown, Harper College, Northeastern University, Oakton Community College, Rizvi College of Management Studies, University of Nebraska, University of Illinois and Indiana University. Thank you to Michael Dawley, XR Trading and CME Group for agreeing to be sponsors of this year’s LaSalle Street Trading Tech Awards for the Boy…

Options Imply Little Risk of Market Correction; SEC Weighs How to Protect CAT; ECB’s power over clearing Newsletter,Options

Lead Stories Options Imply Little Risk of Market Corrections Anytime Soon Myron Scholes and Ash Alankar – Bloomberg A watchful Federal Reserve has created a buoyant environment for equities. The S&P 500 Index is on course for its least volatile year since 1964. On top of that, anticipated volatility as measured by the Chicago Board Options Exchange Volatility Index, or VIX, is near historical lows. jlne.ws/2xYLQax ****SD: “Options are signaling that this is not the time to take exaggerated risks because of a lack — if any — of upside potential, rather than out of concern about the possibility of…

Cybersecurity is very, very tough: How a SIFMU’s cyber chief sees the threat Blog,Commentary,Feature,Mwiki,Options

The OCC’s new chief security officer talks about risks and prevention.  It’s alarming and getting ugly. The Equifax hack in March compromised the personal information of an estimated 40 percent of the United States population. The Bangladeshi central bank is down $81 million after the SWIFT messaging system was hacked in early 2016. The SEC recently disclosed that a 2016 hack of its EDGAR database may have resulted in trading on nonpublic information for personal gain. Then there are the cyber breaches of retailers: Target in 2013, which settled for $18.5 million, and Home Depot in 2014, which settled for…

Fed plan threatens FCM capital jump; Shorting vol; Macquarie leapfrogs Goldman Newsletter,Options

Lead Stories Fed G-Sib plan threatens 50bp jump in FCM capital Louie Woodall – Risk.net A below-the-radar move to tweak the way the US Federal Reserve assesses systemic risk could force banks to raise billions of dollars in extra capital to support their client clearing businesses, critics claim. A rule change proposed by the Fed on August 24 would require banks to include all cleared derivatives transactions in its Banking Organization Systemic Risk Report, known as FR Y-15. The report is used to calculate the capital surcharge for the eight US global systemically important banks. The new reporting requirement would…

Weighing the Impact of Proposed Tax Reform on Centrally Cleared Markets; Please Stop Talking About the VIX So Much; Derivatives Behind Equities Boom or Bust at Europe’s Major Banks Newsletter,Options

Lead Stories Weighing the Impact of Proposed Tax Reform on Centrally Cleared Markets FinReg|Alert – Q&A with Craig Donohue, OCC Executive Chairman and CEO Tax reform is climbing back to the top of the White House agenda, with President Donald Trump telling The Wall Street Journal last week that overhauling the tax code is his next priority following healthcare legislation. While it’s still tough to project exactly what that tax overhaul might look like, some market participants are already voicing concern about the potential for unintended consequences. bit.ly/2tWRlGg Please Stop Talking About the VIX So Much AQR If anyone reading…

EU calls on clearing houses not to become ‘too big too fail’; CME Group Announces Record Open Interest of 117 Million Contracts, Interest Rate Complex Hits 69.5 Million; Hong Kong Investors’ Wait to Trade Shenzhen Stocks Is Over John Lothian Newsletter,Newsletter

First Read Bits & Pieces By John J. Lothian Later today John Lothian News will be publishing an exclusive video interview with the incoming president and CEO of the National Futures Association, Tom Sexton. Our Jim Kharouf sat down with Sexton in the NFA’s offices last week. We will also be publishing this week some print stories from Jim following up on his trip to Colombia and the WFE Annual Meeting in Cartagena, Colombia. He has a U.S. Treasury story that features KCG’s CEO Dan Coleman and a Bitcoin story. Our condolences to Jeff Bergstrom and my wife on the…

Kevin Wolf, Eris Exchange – Market Structure Change Presents Commercial Opportunity Exchanges, OTC & Clearing,Feature,MarketsWiki Education,MWEd,Mwiki,Video

“When I worked at Lehman, periodically people would tell me that I looked like Dick Fuld, and I thought that was pretty cool, especially when I was rising up in the ranks. I don’t find that amusing anymore.” The fall of Lehman Brothers ushered in a period of regulatory change, with one of the goals being to trim the use of OTC swaps and instead have more centrally cleared products. Given the huge size of that market – at the end of 2014 there was $400 trillion notional outstanding – this regulatory shift presented an opportunity. That’s where Eris Exchange…