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Tag Archives: ETP

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…

VIX Bits: The Thermometer Isn’t Broken Blog,Commentary,Options

On the 30th anniversary of the ‘87 market crash last week, Cboe, in collaboration with ProShares, hosted a panel discussion “Current Dynamics of the VIX Market.” There was a lot to glean – from the applications of VIX ETPs to unique characteristics of VIX futures to general perceptions of volatility. Dominic Salvino, Group One’s VIX options specialist, had an analogy for the current low levels of VIX, comparing it to high February temperatures in Chicago. On February 18, the thermometer reached 70 degrees Fahrenheit, only the fourth time that’s happened since 1971. Is that weird? Yes. Is it worth noting?…

2016 Another Year of Positive Momentum for OCC; VIX ETPs Flash Some Green in 2016; China’s Epic Short Squeeze Is Back as Yuan Rally Crushes Bears Newsletter,Options

Lead Stories 2016 Another Year of Positive Momentum for OCC Craig Donohue, OCC Executive Chairman and CEO In 2016, OCC’s evolution from a clearing and settlement utility to becoming a systemically important market influencer was highlighted by our company being recognized with two Clearinghouse of the Year Awards; from Global Investor/ISF and Futures and Options World. These awards underscore the hard work and dedication of OCC’s entire team to ensuring confidence in the financial markets and the broader economy. /goo.gl/K7RReM ****SD: Personnel changes alone made it a huge year for OCC. They have a Dallas office coming soon too. VIX…

The Rise of the VIX ETP Blog,Options

Catherine Clay

By Catherine Clay – Livevol, CEO As the VIX heads toward the 20 mark, it is fitting to wish a Happy Birthday to two VIX ETPs: VXX and VXZ. These five-year-old volatility products made their debut in January 2009, and have generated a tremendous amount of investor attention and interest. As most JLN readers know, the VXX and VXZ provide exposure to equity market volatility through the CBOE VIX futures. VXX offers volatility exposure to a daily rolling long position in the first- and second-month VIX futures, while the VXZ focuses on the mid-term futures contracts. Since the introduction of these…

JLN Options: Regulators Target Exchanges As They Ready Record Fine Newsletter,Options

Lead Stories Regulators Target Exchanges As They Ready Record Fine  Jenny Strasburg, Jean Eaglesham and Scott Patterson, The Wall Street JournalFinancial regulators are taking a harder line on exchanges amid concerns over their ability to police the markets they operate, as the SEC prepares to hit one with a record penalty.http://jlne.ws/10Dgqv2 The Volatility Trade’s Not Dead Yet  InvestorPlaceWith the CBOE Volatility Index and other volatility measures sagging to relative lows, one might think that the volatility trade is dead.  Not the case, according to our options volume tracking filters which have identified some interesting options activity on the fear gauge, as the…