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Tag Archives: Federal Reserve

The low vol feedback loop; EU shuts door on electronic access providers; More exchange consolidation? Newsletter,Options

Observations & Insight Ed Tilly – Staying Ahead of the Technology Curve MarketsWikiEducation.com In this video from MarketsWiki Education’s Intern Recruiting Event event in Chicago, Ed Tilly, chairman and CEO of Cboe Global Markets, discusses how changes in technology force you to adapt to stay ahead of the curve. Tilly breaks down what’s going on in the exchange space and how the Cboe has changed over the years. With the explosion of screen trading and the end of open outcry trading, exchanges have had to roll with the punches and make sure customers are happy. Tilly’s goal is to bring…

Blockchain to massively change commodities; Cboe’s Tilly predicts more consolidation; Chinese oil futures? John Lothian Newsletter,Newsletter

First Read Hits & Takes By JLN Staff We are rolling out the first of the videos from the MarketsWiki Education recruiting event held the Monday of EXPO week in Chicago. The first video features Cboe’s Ed Tilly.~JJL Recall the “broker fee wars” earlier in the year? Fidelity, TD, Schwab and a whole bunch of others started slashing commissions and fees, bringing much of the $7 per equity trade shops down to $5 a trade and some of the discount brokers even lower. Then there’s tastyworks’ $1 to open/free to close options trading setup. Well, unicorn-valued trading app Robinhood just…

The Pound’s Brexit Test; FX Flash Crashes; Basel Rules Newsletter,Options

Observations & Insight Sunday, Sunday, Sunday Spencer Doar – JLN My fantasy football team was bad this year. The Detroit Lions in 2008 bad. I went 0-13. A mathematically inclined friend in the same league ran the numbers – not sure of the specifics, but he used ESPN’s point predictions versus actual performance – and his calculations showed that my abhorrent results were nearly three standard deviations outside the norm. I would not have found this nearly as amusing before I started covering the options space and following earnings seasons. Bottom line, that frees up some of Sunday night. Good…

Trump to tap Powell for Fed; UK fintechs eating banks marketshare; Regulators warning about robots John Lothian Newsletter,Newsletter

First Read Hits & Takes By JLN Staff Congratulations to CME Group employees who supported October Pink for a Purpose campaign. Their efforts brought in more than $50,000. When you include CME’s corporate donations, more than $175,000 will go to @BeBrightPink and more than $16,000 will go to @CR_UK for the early detection, prevention and research for breast and ovarian cancer.~JJL The Treasury released its report on year-end 2016 U.S. portfolio holdings of foreign securities.. The largest holdings of foreign securities by country were the Cayman Islands with $1.37 trillion, the United Kingdom with $1.20 trillion, Japan with $854 billion…

Talk of CAT Delay; Bond vol shows signs of life; Investors fearless Newsletter,Options

Lead Stories Exchanges in talks with U.S. SEC to delay new audit system: sources John McCrank – Reuters Stock exchanges are in talks with the U.S. Securities and Exchange Commission to possibly delay the rollout of a new system aimed at helping the regulator better police the markets, sources familiar with matter the told Reuters. /goo.gl/WCiMXs ****SD: They’re going to have to make a decision shortly. SROs are scheduled to start reporting data to the central repository on November 15. Bond Volatility Shows Signs of Life as Rates Divergence Widens Cormac Mullen – Bloomberg As U.S. Treasury yields climb to…

VIX short fears overblown; Rule-based monetary policies to keep vol low; G-Sib postponed Newsletter,Options

Observations & Insight Showerthoughts: Lewis in 1989, Gambling and Edge Spencer Doar – JLN From “Liar’s Poker” – “…The attraction of options and futures, our specialty item, was that they offered both liquidity and fantastic leverage. They were a mechanism for gambling in the bond markets, like superchips in a casino that represent a thousand dollars but only cost three. In fact, there are no superchips in casinos; options and futures have no equivalent in the world of professional gambling because real casinos would consider the leverage they afford imprudent. For a tiny down payment, a buy of a futures…

Greed, for Lack of a Better Word, Is Taking a Big Hit Today; Federal Reserve’s Moves May Ignite Volatility Newsletter,Options

Lead Stories Greed, for Lack of a Better Word, Is Taking a Big Hit Today Cormac Mullen – Bloomberg One of the best performing trades this year reversed course Thursday as stocks fell and volatility bounced back. The VelocityShares Daily Inverse VIX Short-Term exchange-traded note, ticker XIV, which lets investors bet on continued low volatility, fell as much as 4.5 percent Thursday, after closing at a record high the day before. jlne.ws/2xQUhkW Federal Reserve’s Moves May Ignite Volatility Wall Street Craves Goldman Sachs (GS) Predicts Bradley Keoun – TheStreet U.S. President Donald Trump’s tweets haven’t done it. North Korean leader…

SEC Data Center Had Security Flaws; Hedge Funds Ain’t Dead Yet; Nex warns on key division’s profitability John Lothian Newsletter,Newsletter

First Read Hits & Takes By JLN Staff Today we have part 2 of our interview with the CFTC’s Chief Innovation Officer Daniel Gorfine and head of the agency’s new LabCFTC initiative.~JJL Two weeks from today is our MarketsWiki Education Recruiting event at the CBOE. College students are encouraged to sign up and/or submit their resumes for consideration at our www.marketswikieducation.com website.~JJL We are still accepting sponsors for the recruiting event, event if you can’t be there. If you want access to the database of student resumes, please contact us at johnlothian@johnlothian.com.~JJL Spread Networks LLC’s new lines from Brazil to…

Fed plan threatens FCM capital jump; Shorting vol; Macquarie leapfrogs Goldman Newsletter,Options

Lead Stories Fed G-Sib plan threatens 50bp jump in FCM capital Louie Woodall – Risk.net A below-the-radar move to tweak the way the US Federal Reserve assesses systemic risk could force banks to raise billions of dollars in extra capital to support their client clearing businesses, critics claim. A rule change proposed by the Fed on August 24 would require banks to include all cleared derivatives transactions in its Banking Organization Systemic Risk Report, known as FR Y-15. The report is used to calculate the capital surcharge for the eight US global systemically important banks. The new reporting requirement would…