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OCC Volumes; Flash Crashes; Position Limits JLN Options Newsletter,Newsletter,Options

Observations & Insight Remember, Remember the 15th of September Spencer Doar – JLN It’s that time of year again – the annual financial crisis reflection period. This year markets have a nice, round anniversary number to glom onto. I believe 10-year anniversaries traditionally merit gifts of tin or aluminum. I’m unsure who would be best to send those trinkets to… So there are plenty of stories floating around with plenty more to come. Here is what I expect to be one of many article lists covering issues, lessons and prognostications related to the global financial crisis. (I do hope the…

OCC margin breaches spike in Q1; Flash crash blame game Newsletter,Options

Observations & Insight Traders Grapple With a Big Question: Are Tariffs Priced In? Samuel Potter – Bloomberg After months of simmering tension between the world’s two largest economies, the U.S. will impose tariffs on $34 billion worth of Chinese goods at just after midnight on Friday. The key question for financial markets: will it trigger fresh volatility, or is the trade war escalation already priced in? /jlne.ws/2Kzbiv7 ****SD: Well?! Are they? Lead Stories OCC margin breaches spike in Q1 Alessandro Aimone – Risk.net (SUBSCRIPTION) The Options Clearing Corporation (OCC), the world’s largest equity derivatives clearing house, reported 38 margin breaches…

FX volatility hopes; $100 a Barrel Oil Wager Newsletter,Options

Observations & Insight The Options Industry Leader Series 2018 – NYSE’s Ivan Brown Brought to you by the OCC In this video from the 36th annual Options Industry Conference (OIC) in Amelia Island, Fla., Ivan Brown, NYSE’s head of options, talks about launching options on the FANG+ index, implementing a complex price improvement auction mechanism, and the resiliency of U.S. options markets. Watch the video here » ****SD: See the press release in our “Exchanges” section for more on the FANG+ offering. ++++++ Italy Rout Wipes Five Billion Euros From Bond Futures Market James Hirai – Bloomberg The sell-off in…

Takeaways From Recent Options Volume Surge; Update on Short Vol Poster Child; VIX seen as incomplete measure Newsletter,Options

Observations & Insight An Array of Recommended Tangents for International Women’s Day Spencer Doar – JLN The “Fearless Girl” statue on Wall Street turned one year old today. Let’s dedicate today’s newsletter to the embodiment of her ideals, shall we? To kick it off, here’s the WaPo with The Fearless Girl statue turns one today. Here’s what she’s inspired. The “failing” NY Times (hah – NYT brought in $1 billion of subscription revenue in 2017) has an all-encompassing outlook – International Women’s Day 2018: Pride, Protests and Pressure. Women in Spain are on strike (link to BBC story). This human…

Flash-crash trader helps US in fight against market abuse; Justice Department Charges Eight Traders With Deceptive Futures Market Trading; Decade of Easy Cash Turns Bond Market Upside Down John Lothian Newsletter,Newsletter

Flash Crash

First Read Turn Yourself In, It’ll Be Easier: Bank Cooperation On Spoofing Charges Saves Millions Jim Kharouf – JLN Over the past several months, there has been a fair amount of talk about the Commodity Futures Trading Commission’s push on the so-called “self-reporting” initiative launched last September and aimed at taking it easier on firms that come forward with wrongdoing. Yesterday’s announced spoofing charges and fines include one of the first such self-reporting cases, with HSBC Securities settling for $1.6 million, Deutsche Bank for $30 million and UBS for $15 million. For the rest of the commentary, click HERE ++++…

Thesys vs. Goliath: That’s One Big CAT Commentary,Feature,Fintech,Regulation & Enforcement

Small company wins big with opportunity to build the Consolidated Audit Trail covering U.S. equities and options. FINRA, FIS, Cinnober, Thomson Reuters – what do they have in common? They are just a few of the 30 bidders who lost out on developing the Consolidated Audit Trail (CAT) to Thesys Technologies LLC, a subsidiary of the proprietary trading firm Tradeworx, founded in 2009. To develop and implement the CAT, Thesys partnered with IBM (which was a bidder on its own, too), as well Rosenblatt Securities and law firm Latham & Watkins. “You had some big tech companies that really understand…

Chicago’s Newest Trading Floor Will Be Staffed by Humans; Standard Chartered eyes New York energy trading, bucks Wall Street trend: sources; Complex short Vix products draw fire as vol plumbs lows Newsletter,Options

Observations & Insight BOXing: Let the Bodies Hit the (Options) Floor Spencer Doar – JLN Golly, there’s been a ton of action in options markets lately. First, the surge of crypto news. Last week, MIAX’s investment in LedgerX received airtime as LedgerX was approved as a derivatives clearing organization (DCO), paving the way for bitcoin options. Then CBOE got into the fray with its announcement yesterday that it has partnered with Gemini, the cryptocurrency endeavor backed by the Winklevoss twins, to use its market data to create bitcoin futures. (I expressed my skepticism of the timeline laid out by CBOE…

Forget an IPO, Coin Offerings Are New Road to Startup Riches; Silver Futures Plunge, Rebound in Flash Crash; CFTC commodity swap data goes from bad to worse John Lothian Newsletter,Newsletter

First Read Crypto-innovations Jim Kharouf, JLN One look at today’s newsletter will tell you something – the traditional Wall Street system is ripe for disruption. The JLN piece on Overstock.com’s subsidiary Round One: How Overstock.com and tzero aim to knock out Wall Street shows how that firm is focused on using blockchain and its new Alternative Trading System ATS to do everything from trading securities via a blockchain, to finding an after hours trading niche. But tzero aims to create much more than that. While it’s still early days, it is not hard to imagine using the blockchain technology for…

This U.S. Treasuries ‘Breakout Play’ Has Rarely Been So Cheap; VIX most bearish hedge fund positioning on record; Soc Gen combines electronic and high-touch trading teams Newsletter,Options

Lead Stories This U.S. Treasuries ‘Breakout Play’ Has Rarely Been So Cheap Tanvir Sandhu – Bloomberg Rally in stocks and bonds calls for a more cautious approach; Risks of market correction are rising but yet to be irrational The low cost to hedge a break-out from the range in long-term rates may appeal to investors seeking hedges for a more measured portfolio stance. Strangles on the iShares 20+ Year Treasury Bond ETF, which seeks to track the returns of an index of U.S. Treasury bonds with maturities greater than 20 years, are near all-time lows. /bloom.bg/2tb73Mo VIX most bearish hedge…