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Tag Archives: Consolidated Audit Trail

VIX Isn’t Broke; CAT Privacy Bill; WMDs for next crash Newsletter,Options

Observations & Insight The State of Options Market Making in One Image; Happy 45th Anniversary of the Black Scholes Formula At the Options Industry Conference in Amelia Island, Fla., Trade Alert President Henry Schwartz gave his annual “State of the Industry” presentation. The presentation is always chock full of great graphs and information – the word cloud image above is always a favorite. In the picture, liquidity providers are sized according to their industry presence – the bigger the firm’s book, the bigger its name appears. Schwartz said Susquehanna is not sized to the same scale as the rest because…

Trump-Iran Showdown and Oil Options; Need a CAT “Tsar”; 3% Bond Yields Newsletter,Options

Lead Stories Trump-Iran Countdown Finds Investors More Bearish in Oil Options Todd White and Alex Longley – Bloomberg Volatility has jumped for both bullish and bearish options; Demand for protection against a slump rose in recent days In the hours before President Donald Trump announces to the world whether he pulls the U.S. out of the Iran nuclear agreement, bears are driving the oil options market. /goo.gl/tRJujV ****SD: Sources are reporting he’ll leave the accord. CAT ‘Tsar’ May be Required to Break Gridlock James Rundle – WatersTechnology Regulators may need to step up their efforts to push forward on the…

The Spread – Week of 3/19 to 3/23 Commentary,Video,video

The JLN team is back in Chicago  to bring you a more conventional episode of The Spread. Thank heavens our teleprompter was back in action – ad libbing a poolside chat was wicked difficult. You are likely up to date on the potential Biden v. Trump title fight that was in the headlines this week, but are you up to date on the week’s happenings in options? The following are stories referenced in this week’s episode: Reuters – CFTC ‘astounded’ as Congress prepares to cut budget WSJ – SEC Urges Exchanges to End Standoff on Trading Data Bloomberg – Volcker…

Financial fragility rising; Clayton “not happy” with CAT delay; VIX action Newsletter,Options

Lead Stories Goldman Sees ‘Financial Fragility’ Rising in Markets Joanna Ossinger – Bloomberg Early-February VIX spike might be a symptom of a larger issue; There are reasons to believe ‘liquidity is the new leverage’ Markets are becoming their own worst enemies, according to Goldman Sachs Group Inc. The stock-market rout in early February that caused a spike in the Cboe Volatility Index is a symptom of growing “financial fragility,” or big swings in prices caused by breakdowns in markets themselves as opposed to changes in fundamentals, an economist at the bank wrote Monday in a note to clients. To make…

SEC Urges End to CAT standoff; Deutsche Boerse plans FX expansion; HKEX working with ASX on blockchain John Lothian Newsletter,Newsletter

First Read Hits & Takes JLN Staff Our Page Of The Day yesterday was industry legend Robert J. O’Brien, who turned 100 years old yesterday. His contributions to the industry and interviews with Mr. O’Brien were documented in the RJO O’Brien Centennial Video about the firm’s own 100 year anniversary in 2014, a video produced by John Lothian Productions.~JK Longtime accounting and back office professional Mark Connelly has left the futures industry. He started a new position as senior vice president – operations for All Clean Services responsible for running the Midwest Region. His responsibilities include managing and growing the…

An Update on the Consolidated Audit Trail Regulation & Enforcement,Video,video

At STAC’s 92nd Annual Mid-Winter Meeting, JLN spoke with Shane Swanson, chief compliance officer with Thesys CAT LLC, about the state of the Consolidated Audit Trail (CAT). The CAT will be a large trade data repository for options and equities used for surveillance and tracking. Thesys CAT is the recently formed subsidiary of Thesys Technologies tasked with developing the CAT. The plan was intended to go live in November 2017, but as the date neared, the SROs put in a one year exemptive request. While the SEC has not granted the request, it did agree to work toward a new…

Top Options Stories of 2017 Countdown Feature,Video,video

Correction: SROs did NOT begin reporting to the Consolidated Audit Trail in November – the deadline for implementation was indeed delayed.  For a CAT update, see our January 2018 video with Thesys CAT Chief Compliance Officer Shane Swanson.  Listicles are occasionally the butt of jokes – Buzzfeed knows – but what about listideos? With 2017 in the bag, we at JLN thought we’d recap the year in options with a list of the big stories and trends – and there were a number. Below are links to stories referenced in the countdown. When a theme is addressed, the linked story…

America’s economic selling points at risk; Investors’ fossil-fuel cut commitments; Bitcoin futures broking John Lothian Newsletter,Newsletter

First Read Hits & Takes By JLN Staff The CFTC’s Technology Advisory Committee will meet in Washington, DC on January 23, 2017. As a TAC member, I will be in attendance.~JJL Asia Pacific Financial News from John Lothian News – December 12, 2017~JJL Interest in volatility products is not limited to the Cboe – Eurex will end 2017 with record trading volumes in its VSTOXX futures and options.  Options ADV has roughly doubled and daily futures trading is up some 37 percent.~SD The @JohnLothian twitter account yesterday tweeted 139 times and had 50,707 original impressions.~JJL CME Group has already raised…