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Tag Archives: Livevol

FinTech Exchange: Clay on Innovating During CBOE’s Corporate “Middle Age” Feature,Options,Video,video

Albert Einstein published his theory of general relativity when he was 36. Vincent van Gogh painted Starry Night when he was 36, and Mozart wrote 626 works before dying one month before turning 36. The CBOE turned 44 in April. In that context, Catherine Clay, CBOE’s vice president of integration strategy and operations, addressed how a company that has reached middle age continues to reinvent itself. For her, two keys are process and partners. By process, Clay refers to the CBOE’s weekly software release cycle which begins each Sunday. “The weekly release schedule that is gospel not only gets new…

D is for Data: FinTech Exchange Blog,Commentary,Exchanges, OTC & Clearing,Feature,Fintech,Mwiki,Tech / HFT

The sold-out FinTech Exchange conference, hosted by Barchart, was largely about data – what to do with data, how exchanges are capturing new data and how to trade it. That, on its surface, isn’t particularly new. But the infrastructure to capture all kinds of data is now developed. The CME Group’s Julie Armstrong Menacho colorfully outlined how the exchange has migrated all of its historical data onto the cloud, giving customers greater access to it, along with a growing list of partners who provide alternative data sets like satellite images of oil storage facilities or social media sentiment. CBOE’s Catherine…

Sterling Trading Tech to Acquire CBOE’s Livevol X Trading Platform; Teza sells high-speed trading as lucrative business sours; Placid markets mask investor fear that equity turmoil looms Newsletter,Options

Observations & Insight Bits & Pieces By John J. Lothian This morning we present the first of our MarketsWiki Education World of Opportunity videos from Stockholm. Peter Fredriksson of Baymarkets is the first up with a story about Stockholm. My phone experienced a series of text messages yesterday as NYSE Arca Equities had electronic trading problems late in the day. Here is the System Status page with the details on the problem. It was ten years ago when I went to the FIA Boca Raton conference with an idea: MarketsWiki. It was there I pitched various firms about the idea….

New China options to pave way for open commodities trading; Amsterdamtrader stops; “Open outcry” is in retreat but futures and options trading-volumes surge Newsletter,Options

Lead Stories New China options to pave way for open commodities trading Lucy Hornby – Financial Times As China prepares to introduce its first options contracts for commodities trading, the head of one of the country’s leading bourses for raw materials has shrugged off fears that the move will add to the extreme volatility in commodities seen in 2016. “We [in China] are behind international markets because we have too few tools, too few products,” says Li Zhengqiang, chairman of the Dalian Commodity Exchange, adding that introducing more products and new instruments like options will help hedge risk, not add…

John Lothian Newsletter: London’s financial centre will grow if Britain stays in EU; Elizabeth Warren Calls S.E.C. Chief’s Tenure ‘Disappointing’; BoE said “no decision” on ICE’s Emir approval John Lothian Newsletter,Newsletter

First Read Bits & Pieces By John J. Lothian Jim Kharouf and RJ Roxas have done a terrific job of taking the FinTech Exchange Chicago 2015 video we shot, combining the event’s lightning round of speakers in a new format for John Lothian News. Jim had discovered the Sway multimedia tool from Microsoft and used this to tell the story of this sold out Chicago fintech event organized by Barchart.com. You can see the presentation below. I suggest you click on the link to see the whole layout and design on Sway.com to get the full effect. I love Jim’s…

Victory Lap: Five Minutes (or so) with Dax Rodriguez of Victory Networks Interview,Options

Dax Rodriguez recently joined Victory Networks, a market data and high-speed connectivity provider, as head of business development. An industry veteran in the fin-tech space, he has served as president of Livevol and worked at Deutsche Borse, Chicago Board of Trade, Ballista Securities and E*Trade Securities. We sat down with him to discuss his latest move, as well as recent developments in the technology space, what microstructure, how firms are cutting tech costs, plus compliance and transparency issues. Q: How long has Victory Networks been around and how did you come to join? A: Victory Networks has been around for…

Tax-reporting Changes for Options Trading Commentary,Options

Catherine Clay

By Catherine Clay, CEO of Livevol No one ever said trading options was simple. Unfortunately, the same is true of tax treatment of options gains or losses. Fortunately (or unfortunately, depending on your point of view), new IRS regulations regarding options trading became effective on January 1, 2014. Starting with options purchased this year, your broker will have to report transactions to the IRS when you close the position, including your cost basis, and your short- or long-term capital gains or losses. Evidently, the provision was in response to a “tax gap” related to incorrect cost-basis information that the U.S….

Options – A Must Have in Every Advisers’ Toolbox Commentary,Options

Catherine Clay

By Catherine Clay, CEO of Livevol Yesterday, I wrote about the increase in option volumes from “Mom and Pop” traders. Today I want to note the increased trading volumes originating from independent option advisers. Before 2004, many advisers did not trade options, saying they were too expensive and complex. But recently, especially after 2008, adviser use has grown tremendously, spurred on by a greater understanding of options, lower transaction costs, tighter bid/ask spreads, and increased ease of execution.  Risk management, however, seems to be the primary driver for most advisers. That’s what the Options Industry Council (OIC) reported in a…

The Changing Face of “Mom and Pop” Traders Blog

Catherine Clay

By Catherine Clay, CEO of Livevol When Andy Nybo talks, I pay close attention. I’m sure I’m not alone because Andy, head of derivatives research at the TABB Group, delivers some great research. Some of his recent research concerns the rise of the individual retail trader, a subject covered in a recent Wall Street Journal article, “Mom and Pop Flock to Options Market.” Obviously, participation is the lifeblood of the options market. Data showing increased retail option trading is music to the ears. Andy’s research also dovetails into what we are seeing at Livevol. “Mom and Pop” traders are opening…