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Tag Archives: FX options

Shorting the VIX Could Be Terrible; Financials Bulls Tested; LCH plans G10 NDFs, options Newsletter,Options

Lead Stories Why Shorting the VIX Could Be a Terrible Idea Jared Dillian – Equities.com The New York Times’ DealBook had a great piece of journalism a couple of days ago about short VIX carry monkeys. Well, that is what I call them. The article features a former Target logistics manager who has goosed his net worth up to $12 million by betting that the VIX will go down. He is in the process of raising $100 million for a VIX-smashing hedge fund. /goo.gl/ngccN3 ****SD: Dillian – “If this really does blow up, there is going to be some soul-searching…

CME’s Knottenbelt Discusses International Plans and CME Europe Closure Feature,Video,video

This year the CME Group decided to close CME Europe and CME Clearing Europe, but the exchange group does not see the shuttering as changing overall international and European expansion plans. Rather, the investment CME put into Europe is going to continue to pay dividends as investors overseas realize the offsets CME has to offer given its broad product suite. In this first video from our Exchange Leader Series filmed at FIA IDX, William Knottenbelt, senior managing director, international, with CME Group, talks about the decision to close CME Europe and the international outlook for CME for the rest of…

JLN Options: The worrisome and not-so worrisome Newsletter,Options

Lead Stories Banks, brokers face post-Brexit mis-selling claims over FX options Lawrence White and John Geddie – Reuters Banks and foreign exchange brokers in Britain face legal claims from small companies which allege they were mis-sold complex currency derivatives that soured when the pound fell after Britain’s vote to leave the European Union, according to court filings and sources familiar with the cases. jlne.ws/2lvEinE ****SD: Obviously these companies ought to act responsibly in their selling practices, but I can’t help but wonder why people get roped into things that they don’t understand. Are the sales pitches that stellar? I see…

Don’t Believe Options Traders; Europe’s Volatility Curve Is Getting Kinky Ahead of French Vote; Trump’s dollar paradox promises roller-coaster ride for currencies Newsletter,Options

Observations & Insight January Marketshare via OCC ++++++ On another note, check out what the VIX momentarily did after the Fed yesterday: Here’s a closer breakdown of the action from the CBOE: Time Index Quote 12:59:56 p.m. CT   11.50 1:00:11 p.m. CT      9.97 1:00:26 p.m. CT     11.53 ++++++ CBOE VIX index briefly broke below 10 after Federal Reserve decision Fred Imbert – CNBC Something strange happened to Wall Street’s so-called fear index on Wednesday. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, broke below 10 for less than a minute Wednesday at…

Miami International Holdings and Ledger Holdings Announce Investment in LedgerX Holding Company; FX options a tempting solution – but problems persist; VIX ETFs Have Seen $8.7B In Bullish Bets This Year, Even With VIX Down 30% Newsletter,Options

Observations & Insight EDITOR’S NOTE: JLN Options is happy to have Henry Schwartz, President of Trade Alert, as a guest editor this week. The year in options: A tribute to David Letterman Henry Schwartz – Trade Alert I’ve really enjoyed sharing some insights and data from the US options industry with the readers of JLN Options this week. Next year will mark my 30th in this business, which I’ve watched evolve from a surprisingly effective frenzy of hand signals and paper tickets on the floors to a highly efficient hybrid marketplace where some nearly $6B of premium changes hands daily….

JLN Options: The Two Problems With the VXX Newsletter,Options

Lead Stories The Two Problems With the VXX Adam Warner – Schaeffer’s Investment Research The iPath S&P 500 VIX Short-Term Futures ETN (NYSEARCA:VXX) hit new lows yesterday! In other breaking news, it was hot and it was a Thursday and… we really need the MLB All-Star break to end, as this is clearly the worst sports week of the year. http://jlne.ws/1dKqh9x FX could move to financial settlement under clearing pressure – GFXD’s Lam Joel Clark – Risk Magazine More foreign exchange derivatives could move towards financial rather than physical settlement in the coming years if the market fails to find…

JLN Options: Thomson Reuters to buy FX option business from Tradeweb Newsletter,Options

Commentary & Insight John Lothian Announces Summer Intern Industry-wide Education Program in ChicagoJohn Lothian – JLNJohn J. Lothian & Company, Inc. is pleased to announce today the creation of a Chicago-based industry-wide summer intern education series to introduce the history, innovation, key leaders and future opportunities to participating interns, summer workers, new employees and those interested in careers in the trading and markets.  The series, which kicks off on July 16,  features presentations from a select group of industry leaders, innovators, entrepreneurs, attorneys, technologists, investors, traders and other industry participants.Click here for more information and/or to purchase tickets. Lead Stories…

JLN Options: BOX ‘JUMBO’ SPY OPTIONS WIN SEC APPROVAL Newsletter,Options

Lead Stories BOX Offers Jumbo SPY(Press release via email)The BOX Options Exchange announced today it received SEC approval to offer Jumbo SPY to its customers. SPDR S&P 500 ETF (SPY) is currently the most widely recognized ETF in the U.S. and tracks one of the most popular indexes in the world, the S&P 500 Index. Jumbo SPY Options are a new options contract overlying 1,000 SPY ETF shares per contract, as compared to 100 shares per contract for standard options. BOX expects to start trading Jumbo SPY on Friday, May 10. The approval order can be found at  http://www.sec.gov/rules/sro/box/2013/34-69511.pdf US…

JLN Options: Options Week in Review Newsletter,Options

ETFs on volatility were big news this week. Brendan Conway reported in Barron’s that a couple of relatively new low volatility ETFs are getting bigger returns than the S&P 500, which hit a record high on Thursday. The most widely-owned fund, PowerShares S&P 500 Low Volatility Portfolio (SPLV), got over $790 million from investors this year, according to research firm XTF. The No. 2 fund, iShares MSCI USA Minimum Volatility Index Fund (USMV), received $1.7 billion in new money. The funds entered Thursday’s session up by 12.1% and 12.5% respectively.  In an earlier article, Conway pointed out that Nikolaj Gammeltoft…