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Tag Archives: Credit Suisse

Credit Suisse Has a Derivative for Every Stock-Market Nightmare; OCC Declares 2017 Clearing Member Refund JLN Options Newsletter,Newsletter,Options

Lead Stories Credit Suisse Has a Derivative for Every Stock-Market Nightmare Yakob Peterseil and Sid Verma – BloombergQuint Bears may have gone into hiding, but Credit Suisse Group AG has found a way to coax them out. Mandy Xu, the bank’s chief equity derivatives strategist in New York, is pitching options that bet on a domino effect toppling the record-breaking rally in S&P 500 stocks. Trades sold to institutional investors by the investment bank envision a scenario in which anything from an inverted yield curve to rising rates to a spike in oil prices triggers an end to the longest…

SIX launches crypto platform; Trade war begins; Credit Suisse fined John Lothian Newsletter,Newsletter

First Read Hits & Takes JLN Staff Darin Diller, a former futures operations industry veteran (J.P. Morgan, Geneva Trading USA, Newedge and First Capitol Group), passed away from natural causes as a result of advanced diabetes on July 1, 2018. He was 50.~JJL The latest Financial Data for FCMs report is out from the CFTC.~JJL At 12:16 AM I tweeted this story because I could not sleep: “Sleep deprivation is part of our productivity problem“~JJL The Boy Scouts of America closed the backcountry season for the Philmont Scout Reservation due to extreme wildfire conditions.~JJL I am signed up for a…

VIX Manipulation Class Actions Recap; Goldman and Barclays personnel moves Newsletter,Options

Observations & Insight The Options Industry Leader Series 2018 – BOX’s Ed Boyle Brought to you by the OCC In this video from the 36th annual Options Industry Conference (OIC) at Amelia Island, Fla., Ed Boyle, CEO of BOX, talks about constraints placed on the market making community, forward-starting daily options and the impact of the OIC. Watch the video here » ++++++ February 5 and 6 – “When the Wheels Came Off the Bus” Click for larger image It’s VIX expiration day and things don’t seem newsworthy, which is nice. As mentioned last week, we will occasionally be throwing…

SEC charges ICO backers with fraud; Libor alternative; UK gender pay gaps John Lothian Newsletter,Newsletter

First Read Hits & Takes JLN Staff Dr. Richard Sandor, chairman and CEO of AFX, will discuss his personal journey of innovation throughout the capital markets during a keynote presentation at Fintech Exchange 2018 in Chicago on April 26.~JJL Speaking of the AFX, they set a volume record in March.~JJL CME Group put out a couple of pieces about Asia recently. In case you missed it, March 22 had The Growing Influence of Asia In Derivatives Trading and on March 29 CME published Asia’s Growing Role in Energy Trading. Sensing a theme yet?~SD According to their 2017 Corporate Citizenship Report,…

The Spread – The (Out)Take from FIA Boca Commentary,Video,video

After much travel and a spell of ill health, we can confidently say The Spread is back in action. Our “weekly” options news recap will be much more of a weekly affair now. (Flu season is pretty much over, right?) The JLN crew was at FIA Boca last week and your humble host really struggled without our usual teleprompter rig. As such, welcome to a rambling, stumbling version of The Spread that includes some outtakes from my poor pool performance. If you just want the behind the scenes action, skip to the last minute. The following are stories referenced in…

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…

Options investors accuse brokers of fueling sell-offs Newsletter,Options

pointing accuse

Observations & Insight Potential CME-NEX Deal Is Full of History, Dilemma, Risk and Reward John J. Lothian – JLN For many years, the Chicago Board of Trade had cash treasuries envy, wanting to add the trading of cash treasury bonds and notes to its offerings. For many years, the CME has had cash currency trading envy. Both exchanges, now part of the CME Group, have tried to compete in cash Treasury and FX through various collaborations and initiatives. None of them succeeded. Chicago Board Brokerage and FXMarketSpace are long gone, but the desire to add treasuries and cash FX trading…

Legal battle over Credit Suisse ‘volatility’ product expands to second firm Newsletter,Options

legal gavel

Lead Stories Legal battle over Credit Suisse ‘volatility’ product expands to second firm Trevor Hunnicutt – Reuters The legal fight over a complex Credit Suisse financial instrument betting on stock market swings is expanding, with a new lawsuit targeting one of the product’s service providers. An investor on Thursday sued both the bank and the service provider, a unit of Janus Henderson Group PLC, over the VelocityShares Daily Inverse VIX Short-Term Exchange-Traded Note (ETN). jlne.ws/2HGN6RP Hey, Credit Suisse—Just Because You Disclose the Risks of Your Volatility ETN Doesn’t Mean You Can’t Be Sued Crystal Kim – Barron’s Investors were burned…

FINRA looking at VIX; China curbing options trading; Exotic ETP concerns Newsletter,Options

Observations & Insight What’s the Deal With the VIX Manipulation Letter? Inaccuracy and Misunderstanding Spencer Doar – JLN The big options news pertains to a letter alleging VIX manipulation. The letter, written on behalf of an anonymous whistleblower by a Washington D.C. law firm, alleges market makers manipulate the VIX by quoting far out of the money SPX put options so they are included in the VIX calculation at junctures that benefit their trading activities. It’s understandable financial instruments are subject to concerns about manipulation when their inner workings are complicated and not fully understood by the general public. VIX…