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Tag Archives: leverage ratio

WFE Response to “the Committees”; Robinhood aims for IPO JLN Options Newsletter,Newsletter,Options

Observations & Insight Friday’s Notes Spencer Doar – JLN President Trump indicated he is has another $267 billion worth of Chinese goods to add to the tariff list “if he wants.” In case you missed its publication in April, OCC President and COO John Davidson published A Decade After the Financial Crisis, These Lessons Can’t Be Forgotten. It’s worth a revisit now for obvious reasons. There have been plenty of stories about the financial crisis and its aftershocks to highlight this week, but the following – Millennials Are Sitting Out the Bull Stock Market by Barry Ritholtz for Bloomberg –…

Houndstooth’s long-vol ETF bet; GEM liquidates its books; Earnings worries Newsletter,Options

Observations & Insight Big World Cup Correction and other Miscellany SD – JLN Boy oh boy did I misread the Germany v. Korea recap. It was NOT at all novel that the previous World Cup winner was knocked out in the group stage. In fact, it’s the opposite. From the USA Today:: “Four of the last five winners of the previous tournament have now crashed out in the group stage the next time around.” I should stick to American football references I guess… (That doesn’t alter the fact that UBS’ and Goldman’s computer predictions were way off, though.) Speaking of…

2017’s Low Volatility Was Not a Problem – Julie Winkler, CME Feature,Mwiki,Video,video

The industry will remember 2017 for the lack of volatility in markets despite global geopolitical uncertainty. But as the CME Group’s many new volume records show, that low vol regime didn’t seem to hurt the demand for risk mitigation on its platforms. In this second video of JLN’s annual series with industry leaders, CME Chief Commercial Officer Julie Winkler talks about the successful return of the Russell 2000 suite of products (CME’s largest sales campaign to date), the launch of bitcoin futures, the upcoming launch of the exchange’s Secured Overnight Financing Rate (SOFR) futures and the continuing issues with the…

Here’s What Analysts Are Saying About the First Round of French Elections; Charts Show Traders Writing Down Chances of a Le Pen Presidency; OCC seeks leverage ratio relief as liquidity shrinks John Lothian Newsletter,Newsletter

First Read The future of futures markets: Exchanges looking to fail fast By Jim Kharouf, JLN Andreas Preuss, deputy CEO, Deutsche Boerse had a show stopper. At the IOMA: World Federation Exchanges conference in Frankfurt on Friday, he said his exchange will have to speed up its business processes exponentially in the next two to three years in order to thrive. Implementing products and services from beginning to release will go from today’s 18 months to 4 days. Yes, you read that correctly. And no, no one in the audience was laughing. “The old way was seven months of iterations…

A Basel netting issue: Pushing for less burdensome capital requirements in the options market Exchanges, OTC & Clearing,Feature,Mwiki,Options,Regulation,Regulation & Enforcement

The unintended consequences of financial regulation have been seeping into the markets since the first rule was made in the wake of the financial crisis. One prime example is the leverage ratio, which determines the required capital of general clearing members. The actual calculation of the capital requirement within the Basel III leverage ratio framework is a particular sticking point for the OCC. Right now, the Current Exposure Method (CEM) is used in the calculation, whereas the OCC and a wide swath of industry participants believe that the Standardised Approach for Counterparty Credit Risk (SA-CCR) would better encapsulate the nature…

FIA’s Walt Lukken on Reg AT and the 2016 Agenda Blog,Regulation,Video

Walt Lukken, president and CEO of the FIA, spoke with JLN about what is in store for the rest of the year at the trade organization. The FIA has been coordinating with 10 working groups on what upcoming rules about automated trading (Reg AT) should look like for the futures industry. Lukken said that the FIA believes it would be best to break Reg AT into two more manageable parts.  The first portion would focus on getting pre-trade risk controls up to snuff, and the second part would delve into the more contentious parts of Reg AT, such as definitions…

JLN Financials: Ukraine Central Bank Raises Key Rate to 30%; The 15 Most Miserable Economies in the World; Corporate-Bond Market Poses Systemic Risk Financials,Newsletter

First Impressions Making It Attainable: RCM Buys Attain To Broaden Managed Futures Reach Jim Kharouf – JLN RCM Asset Management pushed further into the managed futures space today with the announcement it has acquired Attain Capital Management. With the move, RCM aims to strengthen its education offerings and broaden its customer base. “Things that they do very well, RCM does not do well or at all. So the combination of the two firms will really enable us to further our reach in the space,” said Bobby Schwartz, CEO and managing director at RCM. Attain, which started in 2002 offering trading…