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Tag Archives: fx volatility

Bitcoin Options Would Tame This Beast; High Hopes for Low Vol; Death of FX Volatility Newsletter,Options

Observations & Insight The Spread – Week of 12/4 – 12/8 JohnLothianNews.com A JLN debut! The Spread is a brief weekly recap of some of the notable activity in the options world. (It won’t always be this crypto heavy – we swear.) The following are stories referenced in this week’s episode of The Spread: WSJ – What Could Stir Up the VIX? Higher Inflation Bloomberg – Pound’s Acid Test on Brexit Is Yet to Come for Options Traders Highly Evolved Vol Blog – The Crowded Short Vol Trade JLN – Cboe Throws Launch Date Punch at Crosstown Rival CME Bloomberg…

Surge in oil options trading; Belief in cryptocurrencies; FX vol collapsing Newsletter,Options

Lead Stories Oil Options Trading Surges After Funds Buy Into OPEC’s Rebalancing Alex Longley – Bloomberg Brent, WTI option volumes hit multi-month highs on Monday; Funds seen drawn by tightening oil market, Mideast tensions Options trading for crude oil this week jumped to the highest in five months as money managers backed OPEC’s effort to rebalance the oil market and as regional tensions flared in the Middle East. jlne.ws/2AqPTLV ****SD: More on the fund buy in from John Kemp of Reuters, who lays out more on the overall action in the petroleum realm, not just WTI and Brent. Saxo’s Ole…

CAT to boost cybersecurity threat?; FX markets stuck in low-volatility; Light trading volume in banks’ results Newsletter,Options

Lead Stories Audit Trail Could Boost Cybersecurity Threat, Exchanges Say Benjamin Bain – Bloomberg CBOE’s Concannon sees little benefit gained for greater risk; SEC facing calls to delay CAT until security can be ensured Stock exchanges could become more exposed to cyberattacks through a trade database being built to help U.S. regulators police markets, industry executives said Tuesday. jlne.ws/2ygTyNx ****SD: Not to be lost in this ongoing discussion: SROs helped write the requirements for the CAT. FX Markets Are Stuck in Low-Volatility Quicksand With No Escape Dani Burger – Bloomberg Currency markets are trapped by low volatility and only a…

VIX Fears; CME Launches Wednesday Weekly Options Newsletter,Options

Lead Stories Wall Street’s ‘fear gauge’ on pace for record closing nadir as stock market trades at all-time high Mark DeCambre – MarketWatch A popular measure of Wall Street volatility was headed to an all-time low, highlighting a protracted period of subdued moves on Wall Street, as assets considered risky climb to records. The CBOE Volatility Index VIX, -3.53% often referred to as the market’s fear gauge, was trading recently at 9.14, which would mark the lowest close for the indicator since Dec. 22, 1993 when it ended at 9.31. jlne.ws/2fTF9R3 ****SD: XIV is trading above 100 today for the…

Currency vol expectations regarding Jackson Hole; Debt-ceiling concerns; Credit Suisse hires Ebert from BAML Newsletter,Options

Observations & Insight Risk of sharp currency moves drives investors into hedged ETFs Helen Reid, Saikat Chatterjee and Trevor Hunnicutt – Reuters Investors have been piling into currency-hedged equity tracker funds, seeking protection against big moves in foreign exchange rates. Typically foreign investors buy un-hedged equities since share prices are usually negatively correlated to currencies. In fact, they offer a partial hedge against sharp moves in foreign exchange. /goo.gl/8JWyxh ****SD: How do ETF providers do this? Generally with forwards and options. The “o” word is only mentioned once in the article, but currency derivatives are really the heart of the…

Interactive Brokers’ market making segment feels impact of options business wind-down; A striking stat shows why even the bears are tempted to bet on stocks; Vix index sends mixed messages to investors Newsletter,Options

Observations & Insight Hits and Takes By JLN Staff Today is day two of the Chicago version of MarketsWiki Education World of Opportunity at the Stuart School of Business at Illinois Tech. We have the largest audience scheduled today for two sessions, one at 1 PM and another at 3 PM. We still have room for last minute additions as well. Our speakers include Richard Sandor, Bryan Durkin, Terry Savage, Joe Guinan, Amy Shelly and Jennifer Wilson at the first session. At session two we have Mehmet Yanilmaz, Julie Armstrong Menacho, Keith Petersen, Patrick Kenny, David Kelbaugh and Jay Feuerstein…

Freakish Peace Envelops Bull Market as Eighth Year Rolls By; While Donald Trump may have stocks up, some hedge funds managers are bracing for a selloff; Fed Takes Fear Out of Markets as Volatility Plunges in Bonds, FX Newsletter,Options

Observations & Insight Long-Time Options Industry Leader Gina McFadden is First Woman to Receive 2017 Sullivan Award OCC OCC, The Options Industry Council (OIC) today announced that Gina McFadden, a long-time leader in the U.S. listed equity options industry, will be the first woman to receive the 2017 Joseph W. Sullivan Options Industry Achievement Award. This award is given to individuals in recognition of outstanding contributions to the U.S. options industry. The award will be presented at the 35th Annual Options Industry Conference on May 12 in Scottsdale, Arizona. jlne.ws/2mYvRoO ****SD: Congratulations! She is also our MarketsWiki Page of the…

In Shadow of Le Pen and Brexit, Traders Redraw European Strategy; How Wall Street gauges fear in a time of Trump; Global derivatives industry calls for phase-in of new rule Newsletter,Options

Observations & Insight Arrival (not with Amy Adams, Jeremy Renner and Forest Whitaker) Notice anything? MIAX Pearl opened up yesterday, bringing the grand total of U.S. options exchanges to 15. When MIAX announced its plans for Pearl, Jim Kharouf wrote a story about the exchange’s planned structure and a bit about MIAX’s background. It’s worth a revisit (though you will undoubtedly notice that Pearl did not in fact open in Q4 2016, as was initially planned). But seriously, the movie Arrival is solid — two thumbs up. +++++ MIAX PEARL Successfully Launches Trading Operations PR Newswire MIAX PEARL, the newest…

Why Stock Market Volatility Isn’t Really as Low as It Appears; An Exceedingly ‘Worrisome’ Discrepancy; Euro Trading Calm Belies Risk of Lehman-Like Volatility Spikes Newsletter,Options

Lead Stories Why Stock Market Volatility Isn’t Really as Low as It Appears Joseph Ciolli – Bloomberg Correlation, it’s sometimes said, equals volatility. An index can’t swing very much unless a lot of its members are going the same way. So if you’re wondering why the CBOE Volatility Index has been so quiet lately, that’s part of it, according to Dean Curnutt, chief executive officer at Macro Risk Advisers. Stocks are charting independent courses under Donald Trump, and it’s holding broad measures of turbulence down. /goo.gl/ZoEY8v An Exceedingly ‘Worrisome’ Discrepancy Seeking Alpha As one bank puts it, investors no longer…