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Tag Archives: G-Sib

VIX short fears overblown; Rule-based monetary policies to keep vol low; G-Sib postponed Newsletter,Options

Observations & Insight Showerthoughts: Lewis in 1989, Gambling and Edge Spencer Doar – JLN From “Liar’s Poker” – “…The attraction of options and futures, our specialty item, was that they offered both liquidity and fantastic leverage. They were a mechanism for gambling in the bond markets, like superchips in a casino that represent a thousand dollars but only cost three. In fact, there are no superchips in casinos; options and futures have no equivalent in the world of professional gambling because real casinos would consider the leverage they afford imprudent. For a tiny down payment, a buy of a futures…

“Unwarranted” G-SIB reqs; Scared of the CAT; Vol comeback welcome Newsletter,Options

Observations & Insight   Bitcoin rockets above $5,000 to all-time high Jemima Kelly – Reuters Bitcoin smashed through the $5,000 barrier for the first time on Thursday, jumping as much as 8 percent on the day as investors shrugged off the latest warnings on the risks of buying into the booming cryptocurrency market. jlne.ws/2yjA2jC ****SD: There will be plenty of crypto talk at FIA Expo next week, especially as exchanges progress with their nascent endeavors to launch crypto products. However, I still am not certain what percentage of people who talk about digital currencies/blockchain actually know what the heck makes…

Fed plan threatens FCM capital jump; Shorting vol; Macquarie leapfrogs Goldman Newsletter,Options

Lead Stories Fed G-Sib plan threatens 50bp jump in FCM capital Louie Woodall – Risk.net A below-the-radar move to tweak the way the US Federal Reserve assesses systemic risk could force banks to raise billions of dollars in extra capital to support their client clearing businesses, critics claim. A rule change proposed by the Fed on August 24 would require banks to include all cleared derivatives transactions in its Banking Organization Systemic Risk Report, known as FR Y-15. The report is used to calculate the capital surcharge for the eight US global systemically important banks. The new reporting requirement would…