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Tag Archives: CME

Hawaii, Harvard gambled on calm; Wall Street not quitting vol; More VIX rigging; HFT source code developments Newsletter,Options

Lead Stories Harvard, Hawaii Gambled on Market Calm—Then Everything Changed Gregory Zuckerman, Gunjan Banerji and Heather Gillers – WSJ A decade of low bond yields pushed some of the most stability-minded investors to dabble in risky investments that depended on markets being orderly. Now, those bets are looking problematic. In the past, pension funds, endowments and family offices pursued relatively safe investments. After interest rates collapsed on the heels of the financial crisis, they ran into challenges paying pensioners and filling university budgets, and added riskier bets on hedge funds and venture capital in the hopes of winning better returns….

VIX Manipulation Costs Investors Billions, Whistle-Blower Says; High-Speed Traders Profit From Return of Loophole at CME; Tighter monitoring for computer trading demanded John Lothian Newsletter,Newsletter

First Read Hits & Takes JLN Staff The SEC’s 2019 budget request of $1.658 billion is a 3.5 percent increase over 2018. The majority of that extra funding, $45 million, would go to “technology enhancements to support the agency’s cybersecurity capabilities, risk and data analysis, enforcement and examinations, and automation of business processes.”~SD The CFTC’s budget request of $281.5 million for fiscal year 2019 would support 716 full time employees. CFTC Commission Brian Quintenz pointed out that in FY 2016, the agency had 714 full time employees, 689 in 2017 and 670 this year.~JK Economist/Stanford professor/auction theorist Paul Milgrom received…

THE Infrastructure Project: Trading Technologies and Coinbase’s GDAX Partner On Deal To Connect Cryptocurrencies To Institutions Blog,Feature

Cryptocurrency trading moved further into the mainstream today with the announcement that Trading Technologies and the Global Digital Asset Exchange (GDAX), one of the largest cryptocurrency exchanges, have partnered to offer the cash products on TT’s platform. This deal is potentially huge in the development for the newest asset class, cryptocurrencies, as it represents another major player in the derivatives space expanding the infrastructure for it. TT and GDAX, owned by Coinbase, will be offered to customers beginning in March. With 19 of the top 20 futures commission merchants connected to TT, this will enable customers who already trade cryptocurrencies…

Strong 2017 Options Volumes; FX Options Traders Get Wake-Up Call; Cryptocurrencies Steal Volatility Newsletter,Options

Lead Stories Editor’s Note: In light of Martin Luther King Jr. Day, there will not be a JLN Options newsletter on Monday. US Options Volumes Strong in 2017 Despite Record Low Volatility Tabb Options Liquidity Matrix US equity options volumes in 2017 increased 3.1% over 2016 totals, reaching 4.19 billion contracts, the third-highest annual total in the past 10 years. 2017’s volume was surpassed only by the record-setting 4.56 billion contracts in 2011 and 4.27 billion contracts in 2014. The volume growth in 2017 is indicative of clients’ increasing use of equity options to manage risk as well as the…

Two futures exchanges call for post-Brexit Mifid rethink; CME Group and JPX Announce Contract; Systemic risks of clearing John Lothian Newsletter,Newsletter

First Read Hits & Takes JLN Staff Today’s top story, Two big futures exchanges call for post-Brexit rethink on Mifid, reiterates what Jeff Sprecher said in April 2017 as covered by Business Insider, “Not to sugarcoat it, I think it [MiFID II] is the worst piece of legislation I’ve ever seen in the history of my career.” But he’s been blasting it since 2016.~JK Eric Piscini of Deloitte Consulting wrote that advancements in the coming months will make the use of blockchain platforms “easier than ever. And it will happen across the main stacks of Hyperledger, ethereum and Corda, among…

MiFID Starts; Exchange Stats; OCC AA+/Stable Rating Reaffirmed Newsletter,Options

Observations & Insight December 2017 Options Exchange Marketshare via OCC Exchanges and Clearing CME Group Reached Record Average Daily Volume Of 16.3 Million Contracts In 2017, Up 4 Percent From 2016 CME Group 2017 Interest Rate average daily volume was a record 8.2 million contracts, up 9 percent compared with 2016 Annual average daily volume records also were reached in Energy, Agricultural Commodities, Metals, total options and electronic options /goo.gl/Yy152d OCC AA+/Stable Rating Reaffirmed By S&P OCC CHICAGO (January 2, 2018) – OCC, the world’s largest equity derivatives clearing organization, today commented on the reaffirmation of its AA+/Stable rating by…

Bitcoin Futures Prices Fall in CME Debut; Why the Germans are right about economics John Lothian Newsletter,Newsletter

First Read Hits & Takes By JLN Staff RJO has shot a holiday video featuring Gerry Corcoran and some of their staff. They even sang “Santa Baby,” featuring employees from across the organization. ~JJL Interesting, or a yawn? Day one futures volumes in Bitcoin at CME totalled 1,088 contracts with open interest of 233. Cboe posted volume of 4,127 contracts on its first day, a wild price day and 1179 in the January contract yesterday. ~JK You can make a donation to your favorite charities by using Amazon Smile when you buy items from Amazon. Go to Smile.Amazon.com.~JJL The New…

Duelling bitcoin futures go head-to-head as CME launches contract; Big Clampdown on Derivatives Has a Bitcoin-Shaped Hole Newsletter,Options

Observations & Insight The Spread – Week of 12/11 – 12/15 JohnLothianNews.com Our second installation of The Spread! The Spread is a brief recap of some of the notable activity in the options world. The following stories are referenced in this week’s installment: Bloomberg – Robinhood Is Making Even More Trades Free, Taking on the Options Market   WSJ – Volatility Is Low But Ambiguity Is Sky High   Eurex – Low-Volatility 2017 Marks High Demand for VSTOXX   Business Insider – Trader ’50 Cent’ lost $197 million betting on market meltdown   CFO – Options Clearing Corp. CFO Focuses…

Duelling bitcoin futures go head-to-head as CME launches contract; How Systematic Internalizers Will Change Trading John Lothian Newsletter,Newsletter

First Read Hits & Takes JLN Staff The CME Group’s bitcoin futures, launched last night, have traded 740 contracts as of 8:00 this morning CST. The Cboe’s bitcoin futures, one-fifth the size of the CME’s contract, traded 2941 by the same time.~JJL The CME Group’s Bitcoin futures prices can be seen HERE. ~JJL The CFTC has launched a virtual currency resource web page. ~JJL MexDer turned 19 years old in the last few days. Congratulations to them on their anniversary. ~JJL The @JohnLothian Twitter account has returned to the #1 spot for financial news tweeting as ranked by the website…