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Tag Archives: futures

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.     

VIX bets surging; LCH begins credit options clearing; Fast moving stocks Newsletter,Options

Lead Stories Stock market volatility, VIX bets are surging Joe Ciolli – Business Insider Traders are betting more and more that the stock market will soon snap out of its prolonged slumber. This can be seen through a measure called skew, which looks at bullish CBOE Volatility Index, or VIX, options contracts compared with bearish ones. It’s at its highest level in two years, having risen swiftly in recent weeks, indicating an expected volatility spike. jlne.ws/2D347UR ****SD: Mentions 50 Cent – in 2018, I hope we get more hip-hop themed volatility traders. LCH begins credit options clearing Helen Bartholomew –…

Traders snap up $80 Brent calls; EM volatility; Quad witching Newsletter,Options

Observations & Insight Carolyn Leonard – Women In Finance JohnLothianNews.com ” I had brokers with very large decks telling me to my face that they’ve never traded with a woman, they weren’t going to trade with me and that I shouldn’t take it personally… A lot of those same guys became awesome friends, but we had a real rocky start.” In this profile video from John Lothian News, Carolyn Leonard recalls her journey through the volatile world of trading at the Chicago Board Options Exchange beginning in the late ’70s. Leonard started trading after a divorce, with two young children…

Young CEO Reshapes 140-Year-Old Metals Exchange; ICE Completes Trayport Deal w/ TMX; America’s Inequality Is Sending the Dow Soaring John Lothian Newsletter,Newsletter

First Read Hits & Takes JLN Staff Georgetown McDonough School of Business offers a new fintech class. John Jacobs, executive director of the school’s Center for Financial Markets and Policy, will teach the course along with Perianne Boring, founder and president of the Chamber of Digital Commerce.~JJL The 2018 World Inequality Report is out. Spoiler alert – income inequality is increasing in “nearly all world regions in recent decades, but at different speeds.” Lots of graphics to parse through. The charts comparing Western Europe’s top 1% vs the U.S.’s top 1% on page 8 are pretty stunning.~SD CME Group has…

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…

OCC tech upgrade; Robinhood’s free options trading; 50 Cent’s losses Newsletter,Options

Lead Stories Tech Upgrade Commands CFO’s Focus; Amy Shelly of Options Clearing Corp. faces several challenges in replacing the organization’s outdated platform. David McCann – CFO Magazine The privately held financial-market utility that settles and clears transactions for all 15 U.S. option exchanges and 3 futures exchanges has a problem: Its technology is woefully outdated. /goo.gl/Kq1s6Y ****SD: Lots for OCC to consider: Roll it out piecemeal or all at once? Finance the project how? Buy or build? For more, see JLN’s piece earlier this year – Cloudy with clearing: What the next clearing house looks like ***SR: Amy Shelly is…

America’s economic selling points at risk; Investors’ fossil-fuel cut commitments; Bitcoin futures broking John Lothian Newsletter,Newsletter

First Read Hits & Takes By JLN Staff The CFTC’s Technology Advisory Committee will meet in Washington, DC on January 23, 2017. As a TAC member, I will be in attendance.~JJL Asia Pacific Financial News from John Lothian News – December 12, 2017~JJL Interest in volatility products is not limited to the Cboe – Eurex will end 2017 with record trading volumes in its VSTOXX futures and options.  Options ADV has roughly doubled and daily futures trading is up some 37 percent.~SD The @JohnLothian twitter account yesterday tweeted 139 times and had 50,707 original impressions.~JJL CME Group has already raised…

Volatility Is Low But Ambiguity Is Sky High; Clearing forex options; War on Dutch prop shops Newsletter,Options

Observations & Insight (Click for larger image) Lead Stories Volatility Is Low But Ambiguity Is Sky High Ben Eisen – WSJ Two academics are rolling out a new measure of market fear that suggests investors aren’t nearly as complacent as they seem. The gauge of so-called ambiguity, meant to chronicle the degree of uncertainty investors have in the probabilities they use to make decisions, has been at all-time highs in recent months, indicating that there’s more fear built into the stock market than common measures of volatility suggest. The Cboe Volatility Index, a popular metric for tracking fear in the…