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Tag Archives: FCM

David Silverman Commentary on February 5: We are a “master and slave to the system” Commentary,Feature

I read the JLN essay about the events of February 5. I had heard many of the rumors that quickly emerged in the aftermath of the carnage and, as always the case in these types of situations, wasn’t sure what to believe. So, first, congratulations on the incisive and important reporting. It’s scary to consider how vulnerable the FCM community—and by extension, the entire industry—is to these periodic shocks; especially since the previously rare black swan sighting has become an increasingly regular occurrence. I suppose it’s possible to look at February 5 in a positive light. After all, every FCM…

Untangling the Execution Landscape Feature,Mwiki,Video,video

One vendor, two vendor, red vendor, blue vendor – how many vendors does your company utilize for trading activity? In this video from IDX in London, Fidessa’s head of business development, derivatives, Russell Thornton talks about brokers’ need to find a one-stop shop for their execution needs and Fidessa’s GT workstation.   Produced by Mike Forrester Interview by Spencer Doar

Goldman blames mom-and-pop investors for volatility; Five of the largest US FCMs lose customer business Newsletter,Options

Lead Stories Goldman blames mom-and-pop investors for volatility in stocks Ryan Vlastelica – MarketWatch The U.S. stock market has seen volatility rear up in 2018, with major indexes experiencing wild swings on a nearly daily basis. There have been a number of causes often cited for the recent bout of turbulence, including concerns over inflation, geopolitical uncertainty, and the first-quarter earnings season, but one of Wall Street’s most prominent investment banks fingers one key culprit: Main Street. /on.mktw.net/2KOoDfL ****SD: It would be a different world if the Mackay classic had been titled “Extraordinary Institutional Delusions and the Madness of Professionals,”…

CME About to Win 14 year old Eurex Suit; SEC’s Retail Protection Plan Short on Details John Lothian Newsletter,Newsletter

First Read Hits & Takes JLN Staff CFTC Commissioner Brian Quintenz will give an introductory keynote Address at Consensus 2018 on May 14 in New York.~JJL The uber efficient Jessica Darmoni interviewed Wedbush’s Bob Fitzsimmons for exactly three minutes for the Hehmeyer blog.~JJL OCC offers the FidelityStudent Debt Contribution Program to their employees to aid in efforts to attract and retain the best talent.~JJL CME Group had 3116 bitcoin futures contracts trade yesterday. Cboe saw bitcoin volume of 7,062 contracts yesterday.~JJL The list of firms offering bitcoin trading on the Cboe includes Advantage Futures, ED&F Man Capital Markets, E*Trade, Interactive…

Risks of Crypto Exchanges; Wall Street Loses in Senate’s Reg Reboot; Beware Fintech Firms Bearing Bitcoin John Lothian Newsletter,Newsletter

First Read Hits & Takes JLN Staff See what our friend David Setters is doing protesting in the UK, in ITV’s piece Motor neurone disease patients protest in Westminster. Brave, focused and strong. Keep fighting, David. He issued a special thanks to Cathryn Lyall, Belinda Gooderham, Mark Thornberry, Thom Lant, Mark Gately, FCIM and MCIPR for coming out to support him that day.~JK Chuck Mackie and Rumi Morales were part of a Chicago SunTimes event last week, the story of which is, “Experts break down future of bitcoin, blockchain in Sun-Times discussion.”~JJL From the World Federation of Exchanges latest report,…

Cash and Futures in Bitcoin Are a Different Story Blog,Commentary,Feature,Mwiki

The high margins charged by the CME and Cboe for bitcoin futures, and the additional margins required by the futures commission merchants to trade the products, have turned the normal dynamics of futures trading versus cash trading upside down. With the CME charging 47 percent margins, and some firms charging double margins on bitcoin futures, the cost of trading is nearly 100 percent of the underlying contract value. Normally futures contracts allow traders to control higher notionally valued contracts for much lower margin amounts. Margins of 3 percent to 10 percent are the norm, depending on the commodity or instrument…

Donna Heidkamp – Strive for Self Improvement MarketsWiki Education,MWEd,Video,video

“Having the chance to be on the front lines working with the markets is an invaluable experience no matter what you do in the industry, no matter where you end up or what path you take.” In this video from MarketsWiki Education’s World of Opportunity event in Chicago, Donna Heidkamp, executive director at RJO Futures, talks about her first internship with the CME and how it shaped her future. Heidkamp says high volatility is what the industry needs to keep things moving in a positive direction. When volatility is low, people get antsy and start making emotional decisions.     

Strong October Options Volumes; American Options Calibration Issues; Betting Against Bitcoin Newsletter,Options

Observations & Insight ESMA Consults On Calculation Of Derivative Positions Mondovisione The European Securities and Markets Authority (ESMA) has today published for public consultation future guidelines on the calculation of derivative positions by trade repositories (TRs) authorised in the European Union under the European Market Infrastructure Regulation (EMIR). jlne.ws/2hIw0Mb ****SD: In the link to future guidelines that is provided, there is this – “In contrast to the approach required under MiFID II/R to calculate position limits, position calculations with regards to options are not based on delta-adjusted notional values. Rather, the relevant gross notional values that are reported under EMIR…

“Unwarranted” G-SIB reqs; Scared of the CAT; Vol comeback welcome Newsletter,Options

Observations & Insight   Bitcoin rockets above $5,000 to all-time high Jemima Kelly – Reuters Bitcoin smashed through the $5,000 barrier for the first time on Thursday, jumping as much as 8 percent on the day as investors shrugged off the latest warnings on the risks of buying into the booming cryptocurrency market. jlne.ws/2yjA2jC ****SD: There will be plenty of crypto talk at FIA Expo next week, especially as exchanges progress with their nascent endeavors to launch crypto products. However, I still am not certain what percentage of people who talk about digital currencies/blockchain actually know what the heck makes…