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The Spread – Week of 4/16 to 4/20 Video,video

The options industry just got a new jewel – MIAX announced it would launch MIAX Emerald last week. For more on that and other stories from last week, check out this new edition of The Spread. Below are stories referenced in this week’s episode:  CityLab – Study: People Take More Risks at Lofty Building Heights MIAX – Miami International Holdings to Launch  New Options Exchange, MIAX Emerald Bloomberg – VIX Rigging Talk Erupts on Wall Street After Another Wild Swing Reuters – Manipulation of Europe’s stocks volatility gauge ‘very unlikely’ OIC – OIC Homepage Produced by Mike Forrester

NASDAQ’s Longfin options tangle; Creative FX trades; Manipulation talk Newsletter,Options

Lead Stories Now NASDAQ gets in a tangle Jamie Powell – Financial Times Last month we published a story on Longfin, a Nasdaq listed trade-finance company with a tenuous link to blockchain technology and hence an excessively high market capitalisation. To recap, FTSE Russell decided to add Longfin to its Russell 2000 and 3000 small-cap indexes. Index funds then bought shares for their various products. There was one problem though. /goo.gl/7p4WD7 ****SD: “Tomorrow, 26,951 of Longfin put options will expire, representing 2,695,100 shares as each options contract is for 100 shares. In other words, the rights to sell account for…

UK regulators to fine Barclays chief; Deutsche Bank’s flub; Wells Fargo $1b fine John Lothian Newsletter,Newsletter

First Read Hits & Takes JLN Staff The story of my being awarded the Silver Beaver Award by the Boy Scouts was reported in the Elmhurst Patch, posted by my friend and fellow scouter John Fabry.~JJL The Magnetar Youth Investment Academy held The Night Out for Financial Literacy fundraiser last evening in Chicago. The academy has served more than 14,000 students at 70 schools in the Chicago area. Chance The Rapper spoke with Magnetar Capital’s founder and CEO Alec Litowitz. When asked what he would have invested in when he was 17 years old, Chance replied that he didn’t have…

VIX concerns; Europe vol gauge manipulation “unlikely” Newsletter,Options

Lead Stories VIX Rigging Talk Erupts on Wall Street After Another Wild Swing Lu Wang, Elena Popina and Luke Kawa – Bloomberg The Cboe Volatility Index is how Wall Street measures anxiety. Lately it’s the gauge’s own plumbing that’s making people nervous. /bloom.bg/2HcVuMX ****JB: Financial Times story on same subject here. Bloomberg Daybreak has a video describing the action here. Manipulation of Europe’s stocks volatility gauge ‘very unlikely’ Reuters Any manipulation of Europe’s main gauge of stocks volatility would be “very unlikely”, France’s financial markets regulator said in a research note on Thursday, following allegations that the equivalent U.S. “fear…

New SEC broker-dealer rule proposal; Challengers to Libor; VIX-rigging? John Lothian Newsletter,Newsletter

First Read Hits & Takes JLN Staff Cboe Global Markets announced the settlement of its April expiry bitcoin futures, the fourth contract settlement conducted since the product’s launch on December 10, 2017. The settlement price was $8,055.68.~SR Quote of the day: “I quite understand at the end of the day everybody evolves and changes. China was a developing market that has developed in part because they needed to — they had an economy based on export at all costs…when you have to grow at 10 percent because you have to accommodate a population moving from villages to cities — and…

VIX settlement surge; Reinventing equity collars; Melt-up elation for volatility gauges Newsletter,Options

Observations & Insight The Week Thus Far – In Case You Missed It Spencer Doar – JLN MIAX plans to launch its third exchange, MIAX Emerald, in Q1 2019. Cboe announced it would begin disseminating a one year VIX calculation (VIX1Y) and that it is “exploring the development of a futures contract” on that index. Speaking of the VIX, it took a stroll south of 15 yesterday. Then this morning – settlement time – it went on a 30 minute run from 15ish to 17, again bringing up talk of manipulation. See the lead Financial Times story below about that…

MIAX Announces New Exchange; Cboe’s New 1-yr VIX; Strong options volume Newsletter,Options

Observations & Insight MIAX Sees Green Spencer Doar – JLN The Spread episode linked to below is already missing big news! The 15 exchange-strong U.S. equity options market is getting another younger sibling from the same group – MIAX – that brought the market its 15th exchange. Named Emerald (see what they’re doing here?), the exchange is scheduled to open in Q1 2019 and will “fill a market structure niche not currently offered by the MIAX Exchange Group.” This is yet another step in MIAX’s ever-increasing presence in the options space. According to the monthly Options Liquidity Matrix (link in…

Kraken Pulls Out of Japan; Attorney Berkovitz to CFTC; Russia blamed for global cyber attack John Lothian Newsletter,Newsletter

First Read Hits & Takes JLN Staff A JLN Special: The 4th annual FinTech Exchange hosted by Barchart on April 25 & 26 in Chicago is giving away 10 tickets to the event, hosted at Venue SIX10 at 610 South Michigan Avenue. This year’s event will showcase presentations from fintech leaders on alternative data, trading innovation, blockchain in capital markets and cryptocurrencies. Hear from the bitcoin exchange Kraken, CME Group, Cboe Global Markets, AFX’s Richard Sandor and many more. This year’s event also features a new, half-day competition on April 25 called Startup Exchange, featuring fast presentations from 16 startupsóincluding…

The Spread – Week of 4/9 to 4/13 and 4/16 Video,video

Don’t be confused! The plaintiff in the Cboe VIX manipulation suit is named Spencer, but has nothing to do with the host of “The Spread.” That, and more, gets cleared up in this week’s options news recap.  The following are stories referenced this week:  Crain’s Chicago Business – How the wrong bet on market volatility annihilated this mutual fund Class Action Complaint, Northern District of Illinois – Bueno vs. Cboe Financial Times – How a volatility virus infected Wall Street PRNewswire – MIAX Options and T3 Index to Launch SPIKES Volatility Index; Proprietary Products to Follow on MIAX Exchanges Business Insider –…