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Tag Archives: FINRA

John Lothian Newsletter: Investment firms sue exchanges in dispute on improper fee charges; Finra Upgrades Surveillance; Rating agencies under fire again John Lothian Newsletter,Newsletter

A group of investment firms sue the CBOE, alleging improper fee assessment over a multi-year period. FINRA extends a new regulatory reach to stock trading platforms catering to high-frequency traders, and takes a closer look at dark pools. After earning jeers and criticism in 2008, credit rating agencies are taking fresh damage for their mis-estimation of the US housing market.

JLN Options: Supreme Court Denies ISE Appeal On Index Options Dispute Newsletter,Options

Lead Stories Supreme Court Denies ISE Appeal On Index Options DisputeJacob Bunge and Brent Kendall, Dow Jones Business News (via NASDAQ)The U.S. Supreme Court has decided not to take up a long-running legal battle over an exchange’s right to trade lucrative options contracts linked to stock indexes.**CBOE press release is below. -JB Low Volatility Is Depressing Options SellersTyler Craig, InvestorPlaceBarring the occasional spike to the high teens, the CBOE Volatility Index (CBOE:VIX) appears to have found a new home in the 12-14 zone this year.While the low-volatility regime settling over Wall Street might be applauded by bull market lovers, though,…

JLN Options: CBOE Reopens After Malfunction Shuts Options Exchange Newsletter,Options

Lead Stories CBOE Reopens After Malfunction Shuts Options ExchangeNikolaj Gammeltoft, Nina Mehta & Lu Wang, BloombergThe Chicago Board Options Exchange opened for trading three-and-a-half hours late today after a software malfunction shut the derivatives market as its top executives were away at an industry event in Las Vegas. CBOE Holdings Statement on Today’s Trading Issue Press Release (CBOE – full text)CHICAGO, IL, April 25, 2013 — CBOE Holdings, Inc. (NASDAQ: CBOE) statement regarding this morning’s trading issue: This morning, a system issue delayed the opening of options trading at Chicago Board Options Exchange (CBOE) from 8:30 a.m. until 11:50 a.m….

JLN Options: Volatility’s Biggest Week of 2013 Was Not Very Big Newsletter,Options

Lead Stories Volatility’s Biggest Week of 2013 Was Not Very BigBrendan Conway, Barron’sThe “fear gauge” climbed 24% last week, the most in nearly four months. But these days it takes more than a commodity selloff and weak data in China to get investors genuinely worried. VIX Has Biggest Weekly Increase of 2013 as Stocks DropNikolaj Gammeltoft and Cecile Vannucci, BloombergBusinessweekU.S. equity volatility rose the most in almost four months last week after unexpectedly slow growth in China and a selloff in commodities triggered the biggest stock-market drop since November. Bloomberg lawsuit will not stem swap futuresThe TradeBloomberg’s legal action against…

JLN Options: VIX: Has Vol-of-Vol Stopped Working? Newsletter,Options

Lead Stories VIX: Has Vol-of-Vol Stopped Working?Jared Woodard, The StreetOne of the phenomena we have focused on a lot in our CBOE Volatility Index (VIX) trading over the last few years is the volatility of volatility. The VIX Index Rises As Reality Sets In: Weekly VIX ETF ReportWall Street Sector SelectorThe VIX Index (but not VIX ETFs) appeared to be reacting in fear to the declining equity markets.  The NASDAQ’s 2% slip, the Russell 2000′s 1.7% slip, and the S&P 500′s 1% slip likely did not quell investor fears, as it appears by and large that the major indexes are…

JLN Options: No tax please, we’re British, Italian, French… Newsletter,Options

Lead Stories No tax please, we’re British, Italian, French…Steve Grob, FidessaThe debate about Financial Transaction Taxes (FTTs) seems to roll on and on. Italy’s FTT is due to come into force this Friday and two democrats in the US want to introduce an American FTT. Even EU Tax Commissioner Algirdas Semeta says a global tax on financial transactions eventually should be a reality. FTSE introduces UK and Italian equivalents of the VIXSimon Smith, ETF StrategyFTSE Group, a leading global index provider, has introduced the FTSE Implied Volatility Index Series (IVI), a new suite of indices that measure the implied volatility…

JLN Options: Options Traders Side With Comcast on NBCUniversal Deal Newsletter,Options

CFTC Proposal Poses “Monumental” Challenge to FCMsBy John Lothian Changes to the way customer funds are held and accounted for by futures commission merchants (FCMs) were inevitable after the bankruptcies of MF Global and Peregrine Financial Group. But it is pressure from buy-side market participants and their allies in Congress who are pushing for regulatory changes that could change the face of the futures business. At last week’s CFTC Roundtable, the fourth panel of the day titled “Enhancing Protections Afforded Customers and Customer Funds Held by Futures Commission Merchants and Derivatives Clearing Organization,” highlighted the challenges and potential consequences to…

JLN Options: Investors Seek More Transparency on Corporate Hedging, Derivatives Exposures Newsletter,Options

LEAD STORIES Investors Seek More Transparency on Corporate Hedging, Derivatives ExposuresEmily Chasan, The Wall Street JournalCorporate disclosures on hedge accounting and derivatives trading are so opaque that investors are often unable to see the true risks companies face from engaging in those activities, according to a new report from the CFA Institute, which is recommending companies improve disclosures in those areas. S&P 500 Advances to Five-Year High on Economic ReportsBy Rita Nazareth & Sarah Pringle, BloombergU.S. stocks rose, sending the Standard & Poor’s 500 Index to a five-year high, amid better- than-forecast initial jobless claims and housing data. GFI announces…

John Lothian Newsletter: Vow of New Light For ‘Dark’ Trades; NYSE Server Failure Interrupts Market Data on 165 Securities; Button-Down Central Bank Bets It All John Lothian Newsletter,Newsletter

FINRA announces that it plans to expand its oversight of dark pools. The parade of technical trouble in the world’s financial markets proceeds apace, as NYSE logs a market interruption yesterday. In Switzerland, the central bank continues its high-risk efforts to protect exports and prices.