Breaking News

Tag Archives: FX options

Strong 2017 Options Volumes; FX Options Traders Get Wake-Up Call; Cryptocurrencies Steal Volatility Newsletter,Options

Lead Stories Editor’s Note: In light of Martin Luther King Jr. Day, there will not be a JLN Options newsletter on Monday. US Options Volumes Strong in 2017 Despite Record Low Volatility Tabb Options Liquidity Matrix US equity options volumes in 2017 increased 3.1% over 2016 totals, reaching 4.19 billion contracts, the third-highest annual total in the past 10 years. 2017’s volume was surpassed only by the record-setting 4.56 billion contracts in 2011 and 4.27 billion contracts in 2014. The volume growth in 2017 is indicative of clients’ increasing use of equity options to manage risk as well as the…

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…

Bond wolves; Hedging for the shale boom; Jump Trading shakeup; More BTC Newsletter,Options

Observations & Insight Jim Kharouf Resigns as CEO of John J. Lothian & Company, Inc.; Will Continue Work with Company in Freelance Role Jim Kharouf is stepping down as CEO of John J. Lothian & Company, Inc. at the end of the year after having assumed the role on January 1, 2017. Kharouf is leaving the company as an employee, but will continue to work with John Lothian News and John Lothian Productions as an independent contributor. He will also be exploring his own bespoke initiatives, including in the Fintech sector. Despite accomplishing much during his tenure at the company…

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…