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Tag Archives: CTA

Online Stock Trading Has Serious Security Holes; CTAs Are Losing Money John Lothian Newsletter,Newsletter

First Read Tech firms looking to change the technology stack Jim Kharouf, JLN The question for the industry today is whether firms have hit the technology breaking point. In other words, can firms continue to maintain and sustain the technology they’ve built over the past 20-plus years? A new breed of tech firms is emerging to help address this challenge. There are increasing signs that the so-called “technology stack” at various firms is not economically sustainable, nor is it necessarily more efficient. For years, various technology vendors have been expanding their product mixes to handle front, middle and back office…

Basel III sparks trader retreat from listed derivatives John Lothian Newsletter,Newsletter

First Read AI is changing this industry. Now what? Jim Kharouf – JLN I spent last week listening to experts in artificial intelligence talk about what AI can and will bring to the markets and the broader world. What is patently clear is that AI is here now and is only going to expand. As Jay Biondo, product manager, surveillance at Trading Technologies told me, it’s everywhere already – from Amazon’s Echo (usually called Alexa) to Netflix’s suggested picks. It’s part of Charles Schwab’s brokerage service which will allow its brokers to service thousands instead of hundreds of customers, according…

tastytrade raises $20m; February’s legacy; ETFs using derivatives; CME latency tricks Newsletter,Options

Observations & Insight Hot Friday In Chicago SD – JLN With all the trade rhetoric floating around and the market’s intraday gyrations, I haven’t felt the onset of stereotypical summer sluggishness. Until today. Something about waking up to “excessive heat” warnings on my weather app, spot VIX opening lower (S&P 500 up, Dow up, Russell up) and it being a slightly slow day for options news just feels like summer. Well, that and the fact that an array of fireworks have been going off in my neighborhood’s alleys since Wednesday… Speaking of black powder, it’s a short week next week…

More Questions Than Answers For A Potential CryptoMarketsWiki ICO Blog,Commentary,CryptoMarkets,Fintech,Mwiki

In the announcement of CryptoMarketsWiki last week, I mentioned that the project would explore the initial coin offering process from an editorial and strategic perspective. If our due diligence works out, we may go ahead and conduct an ICO and use the token in our business operations. But there are lots of questions to answer before we get there. In fact, there are lots of questions we don’t even know yet, let alone know the answers. However, if we are going to build the central knowledge base for the cryptomarkets world, having real life experience with the product would be…

Cboe says Vix products not to blame; Credit Suisse liquidates vol fund; The market is not the economy John Lothian Newsletter,Newsletter

First Read Hits & Takes JLN Staff Electronic Interest Rate options ADV reached a record 1.43 million in January, including a single-day record on January 18th in which 1.3 million Eurodollar options traded on CME Globex, surpassing the daily pit volume.~JJL SGX FX futures volume hit a new record of $65 billion in January with ADV of $3 billion.~JK In light of all the VIX ETP drama, which was covered in yesterday’s Options newsletter, check out our blog post Vol-cano Erupts – How’s Seth Golden Doing? It was a response to the seeming surprise amongst pundits about how volatility products…

Brand New: Hehmeyer Moves Into Managed Futures & More Blog,Commentary,Feature,Video,video

Sometimes it’s time to diversify. Chris Hehmeyer formed a new firm called Hehmeyer Trading & Investments LLC that will expand into the managed futures and introducing broker space. The renamed company comes from his prior firm, HTG Capital Partners, which acquired Kottke & Associates in late 2016. The new name helps simplify things for Hehmeyer, who has integrated HTG’s proprietary trading operation along with Kottke’s commodity trading advisor and introducing broker business. Hehmeyer, who serves as CEO of the the new entity, sees plenty of opportunity in the CTA business. He said there is an appetite for non-correlated investments and…

25 Years – NIBA’s Schramm and Burke Talk History, Growth and Looking Ahead Interview,Regulation,Video

With the NFA’s creation of Introducing Brokers in 1984, it soon became clear that there was a need for an association for IBs. This newly created group needed a voice and found it with the National Introducing Brokers Association, now celebrating its 25th Anniversary. “The mission is still of education and very much providing a forum for a voice and a way to get our opinions out,” says Melinda Schramm, the NIBA’s founder and chairman. “But the IB community has changed considerably over the years.” While IBs are still all around the country, they’re really value added brokers in today’s…

Germination And Emergence: Allison Yacker on Emerging Manager Seeding Arrangements Interview,Regulation,Video

In the trading space, much like the rest of the world, some of the best ideas and strategies come from emerging managers, or the “new kids on the block.” The trick is finding the right right win-win partnership to help get them on their way. Today, it is the large managed funds that control most of the assets. A recent study from hedge fund research firm Preqin shows that big funds – those with over a billion under management, manage more than 90 percent of the assets. And last year, the hedge fund space had $3.2 trillion assets under management,…

NFA Election – Ernest Jaffarian reply to statements of James Koutoulas and John Roe Blog

From Ernest Jaffarian: I find it necessary to speak to a number of mischaracterizations regarding the service of Doug Bry and myself on the NFA Board. It was Doug Bry who originally suggested to me in 2011 that I pursue election to the NFA Board.  He did so out of a deep concern for the needs of CTAs and their clients in the wake of MF Global.  When the nominating committee chose to nominate the incumbent to a non-contested position on the ballot, he encouraged me to petition to be added to the ballot.  It was then that I encouraged…