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Tag Archives: credit default swaps

The Spread – Week of 12/18 Feature,Video,video

The Spread is a brief recap of some of the notable activity in the options world. This is Episode 3 and an improvement on “Revenge of the Sith.” The following are stories referenced in this week’s episode: WSJ – A Million-Dollar Bet That Bitcoin Will Hit $50,000 JLN – Seed CX Swaps Hemp For Cryptocurrencies OCC – Advocating for a stronger U.S. options market Reuters – LCH begins credit options clearing Bloomberg – Trader Turns $60 Million Profit in Sharpest Bond Selloff of 2017

IBM Partners With Wall Street to Bring Blockchain to CDS Market ; India International Exchange To Go Live On January 16 With New ‘Sensex 50’ Index; FX ‘Cartel’ Traders Said to Face U.S. Rigging Charges John Lothian Newsletter,Newsletter

First Read The tasty nation adds an entree, tastyworks: Tom Sosnoff and the tastytrade crew are “going to murder passive investing” Spencer Doar – JLN Editor’s note: This story contains language that some readers might find offensive. Also, the subject matter contains a plethora of non-capitalized proper nouns, which are the actual names of the firms. The team behind retail brokerage thinkorswim, and more recently the financial news network tastytrade, is once again hoping to take the retail broking industry by storm with the opening of their new brokerage, tastyworks. Launched on January 3, the low-commission offering is the next…

The Voice: Green Key Technologies Is Turning Your Brokerage Voice Into Valuable Data; CEO Christensen Says Voice Brokerage Is Far From Dead, And The Conversations Gleaned Could Be Transformational For Firms Exchanges, OTC & Clearing,Feature,Interview,Mwiki,ReformWiki,Regulation,Regulation & Enforcement,Tech / HFT,Video

In today’s financial markets, the conversation is most often about electronic trading, high frequency trading, complex orders via algorithms and so forth. Yet, for the $492 trillion global OTC derivatives markets as well as block and listed markets, firms still conduct business over the phone, person-to-person, a practice which is now availing itself to new technology in compelling ways. Paul Christensen, who started as CEO of Green Key Technologies in March, told John Lothian News that phone transactions for certain markets is “a much higher quality way of communicating.” As such, technology firms are seeking ways to harness the value…

John Lothian Newsletter: ICE plans single-name CDS platform; Blythe Masters Tells Banks the Blockchain Changes Everything; U.S. Currency Probe Expands to Russia, Brazil Trades John Lothian Newsletter,Newsletter

First Read Why the commodities super cycle was a myth FT View Falling prices show the world is not running out of resources In 1980, the economist Julian Simon challenged doom-mongering biologist Paul Ehrlich to a bet that the prices of any five metals would be lower in 10 years’ time. He won, and made his point: over the long run, technological progress means commodity prices are likely to fall in real terms. ***** Over the long run, higher prices will cause over production and thus lower prices. And years of low prices will cause under production and thus…

Slick Transition: ICE Clear Europe’s Paul Swann Talks NYSE Integration Interview,Regulation,Video

ICE Clear Europe is at the center of the Intercontinental Exchange’s effort to expand across Europe, as well as integrate NYSE Liffe products into its market. The clearing house has been busy trying to adjust to new regulations and structural changes in the industry, not to mention merge business lines with the former NYSE family of exchanges. Paul Swann, president and managing director of ICE Clear Europe, said the clearing strategy for ICE has expanded greatly from just clearing energies in 2008 to now clearing credit swaps and a new host of NYSE Liffe contracts. In June, ICE finished phase…

JLN Financials: You Can’t Play Jenga With a House of Cards; The downsides of quantitative easing; The reality of America’s fiscal future Financials,Newsletter

First Impressions Quote of the Day “A money-financed tax cut is essentially equivalent to Milton Friedman’s famous ‘helicopter drop’ of money.” – The salient quote from Ben Bernanke’s 2002 now-famous speech that earned him the “Helicopter Ben” moniker. The quote was referenced in the FT article “Look to ‘Helicopter’ Ben for clues to Yellen’s Fed” Lead Stories The downsides of quantitative easing, Cardiff Garcia smackdown watchCardiff Garcia | FT AlphavilleBrad DeLong asks (politely) why oh why can’t we have better QE weblogging, and then issues a challenge: Toward the end of an otherwise very good think piece, the intelligent and…

John Lothian Newsletter: Bloomberg Sues CFTC Over Swap Collateral Rules; Money Funds Are Likely to Face Rule Changes; Brokers lose index CDS volumes to new Tradeweb platform John Lothian Newsletter,Newsletter

Bloomberg LP takes on the CFTC over collateral requirements for swaps, saying the decision to make rates higher for swaps than for comparable futures is arbitrary and unfair. The SEC moves closer to issuing new controls for the money market fund industry. The vast majority of volume in index credit-default swaps has drained out of the broker market and into Tradeweb’s new electronic platform set up for that purpose.

John Lothian Newsletter: Ice blames SEC as it drops single-name CDS clearing plans; Mini Options See ‘Respectable’ Start; CME launches interest rate swap clearing in London John Lothian Newsletter,Newsletter

ICE Clear Credit tosses plans to start single-name credit-default swap clearing after an SEC policy change caused heartburn on the buyside. Yesterday’s mini-option debut produced “respectable” volume across multiple venues. CME Group turns on the lights for its London interest rate swaps clearing service.

John Lothian Newsletter: Investors skirt new shorting curbs to bet on EU woes; Regulators to fortify bank capital after Libor, fines and fraud; Barclays case shocks the energy market John Lothian Newsletter,Newsletter

Investors, told to stop speculating on EU government bond defaults, promptly begin the search for a different investment vehicle that will allow them to continue trading the same outcome. Bank regulators are increasing capital requirements after ongoing fraud and poor decision making shows no signs of subsiding. Barclays sets aside more money to pay fines for allegedly having “done an Enron” to the US power market. Take a look at First Read and the Exchanges section for a rundown of October exchange volume numbers; the first wave of reports suggests a continuation of the familiar pattern of, “Overall pretty lousy;…