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Tag Archives: Knight Capital

A Tale of Two Issues: Zach Ziliak Breaks Down the HFT Debate Interview,Regulation,Tech / HFT,Video

Zach Ziliak has seen both sides of the HFT universe. As a quant at an investment bank, he developed trading algorithms. As an attorney, he represents firms covering the whole Investment spectrum. As a participant in the AT 9000 initiative, he is working on the development of quality management standards for the testing of high frequency and other automated trading systems. “Those of us exposed to the industry have been thinking about this for a long time,” says Ziliak. “But now because of Flash Boys, suddenly it’s conversation at the bars.” He says that any kind of rules will create…

John Lothian Newsletter: Open for business: Government shutdown, default averted; Knight Capital Agrees to $12 Million Settlement for 2012 Errors; Fed Weighs Surcharge on Banks’ Commodity Businesses John Lothian Newsletter,Newsletter

First Read Welcome Back to Work I would like to welcome back to work the employees of the U.S regulatory agencies in Washington, DC. In a sports related note, I wanted to mention another controversy in Washington about the name of the professional football team there. The Washington Redskins are under increasing pressure to change their name due to the derogatory nature of it. So the team has decided to change their name and will henceforth be called just the Redskins. ++++ Connecting the Dots John J. Lothian My friends at the National Futures Association asked me to connect the…

JLN Options: The New VIX Futures Margin Requirements Newsletter,Options

Lead Stories The New VIX Futures Margin Requirements  Adam Warner – Schaeffer’s Investment ResearchIt’s a summer Friday, so it’s not likely we see too much intraday volatility in stocks today. CBOE Market Volatility Index (VIX) futures, though, could see some serious action. Margin requirements have changed significantly since last night. My friend Bill Luby has the details here at VIX and More:http://jlne.ws/12vm2rO Options Investors Remain Wary as VIX Falls  Kaitlyn Kiernan – The Wall Street JournalThe Chicago Board Options Exchange’s Volatility Index is coming off its highest levels of the year, but options traders are remaining cautious as uncertainty around Federal Reserve…

JLN Options: CBOE May Retire From Police Beat Newsletter,Options

Lead Stories CBOE May Retire From Police Beat  Jacob Bunge, The Wall Street JournalThe parent of the Chicago Board Options Exchange is considering whether to separate out its regulatory division in the wake of a continuing federal probe into potential conflicts of interest, people close to the discussions said.http://jlne.ws/11i2yIx What a ‘Global’ Market Does When AP’s Twitter Account is HackedBrendan Conway, Barron’sThe AP’s hacked Twitter account erroneously reports an explosion at the White House. The Dow drops more than 100 points instantly. Then it swiftly recovers after people realize nothing bad has happened:http://jlne.ws/15EHgec CME Group Mistakenly Revealed Swap Trades to Market…

JLN Options: Despite Gold Selloff, Options Traders Bank on Rebound Newsletter,Options

Lead Stories Despite Gold Selloff, Options Traders Bank on ReboundCarolyn Cui, The Wall Street JournalSo gold notched its biggest one-day drop in 30 years. What’s next?Despite the heavy losses, broken technical levels and waves of margin calls, the options market for the yellow metal is beaming with optimism.http://jlne.ws/15dptKq Gold Options: Graphical description of the price slumpOle Hansen, TradingFloor.comThe biggest two-day sell-off in 30 years has triggered some major moves in gold options. Implied volatility has surged, with the cost of downside protection rising the most. Implied volatility has almost doubled after rising to almost 29 percent, which in a near-term…

JLN Options: Brokers Face Off Against Exchanges at Today’s Senate Hearing Newsletter,Options

Lead Stories Brokers Face Off Against Exchanges at Today’s Senate HearingPeter Chapman, Traders MagazineRepresentatives from two exchanges and two broker-dealers will likely air their differences today during a hearing hosted by the Senate Banking Committee.http://jlne.ws/12AhROv Derivatives traders optimistic for 2013, according to Risk.net pollRisk.netThe majority of respondents to a Risk.net poll expect to make more money from derivatives trading next year, despite the onset of new regulations in 2013 and continuing problems in the eurozone.http://jlne.ws/ZiRC15**Nice to know that “things can’t get much worse than 2012.” — SR ‘Un-Volatility’ Funds Hit Fresh Lifetime HighsBrendan Conway, Barron’sThere’s an incredibly wide array of,…

John Lothian Newsletter: NYSE exec says exchanges moving closer to “kill switch”; LSE Said to Cut LCH.Clearnet Bid by 30pct; Knight Takes Higher Price in Getco Sacrificing Virtu Cash John Lothian Newsletter,Newsletter

A NYSE official says that regulators and exchanges are nearing agreement on how to implement a shutdown mechanism for runaway trading software. Following a requirement for LCH.Clearnet to significantly increase its capital, London Stock Exchange has reduced its acquisition bid. Broker Knight Capital evaluates suitors and selects Getco’s bid for acquisition. In First Read today, take a look at our new video interview with Allan Schoenberg of CME Group, as he explains how CME Group increasingly utilizes social media as a content distribution platform to discuss market issues with customers, partners and other stakeholders.

JLN Options: European Trading Volumes Rise Before Last Options Expiry Newsletter,Options

Lead Stories European Trading Volumes Rise Before Last Options ExpiryNandini Sukumar & Adria Cimino, BloombergEuropean trading volumes surged as investors prepared for the last options expiry of 2012 amid optimism that U.S. President Barack Obama and Republicans will agree on a budget.http://jlne.ws/R3wl6T**  Where did the year go? –JB Credit Suisse To Reverse-Split TVIX  Cinthia Murphy, IndexUniverseCredit Suisse, the Switzerland-based investment bank and asset manager, will serve up a 1-for-10 reverse split on the VelocityShares Daily 2x VIX Short Term ETN (NYSEArca: TVIX) on Dec. 21, after the notes lost almost all their value in the past year.http://jlne.ws/R3w9Ex NYSE executive says exchanges…

JLN Options: Approval Pending, Miami Exchange Plans Its Launch Newsletter,Options

Lead Stories Approval Pending, Miami Exchange Plans Its LaunchJacob Bunge, The Wall Street JournalThe Miami Options Exchange plans to open for business Dec. 7, though the market has yet to be granted formal approval by U.S. regulators.The planned stock-options exchange, which aims to become the 11th U.S. options market, told banks and financial firms of the expected launch in a notice that outlined the final tests of its new trading system.http://jlne.ws/QM0Y1N Only The VIX Gets The Fiscal CliffJoe Weisenthal, Business InsiderIf you watch coverage of the Fiscal Cliff, you might think that on January 1, the economy is going to…