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Tag Archives: maker-taker

Hedge funds and the gender imbalance; Probe into ‘maker taker’; The next quant meltdown John Lothian Newsletter,Newsletter

First Read Hits & Takes NEX Group yesterday led a session of Trading Tech 300, the merit badge workshop program created to help young people connect with the financial industry in Chicago. They took a group of Scouts around the financial district in a Geocaching exercise. Thank you to Tom Scanlan and the NEX crew for their service.~JJL Michael Kraines of Trading Technologies is our video subject today from the Chicago sessions of MarketsWiki Education World of Opportunity. Brian Quintenz has been sworn in as a commissioner of the U.S. Commodity Futures Trading Commission.~JJL If you like funny infographics, check…

Not as Bad as it Seems: Schwartz Addresses the State of the Options Industry Blog,Commentary,Feature,Options

Henry Schwartz, president of Trade Alert, gave his annual “State of the Options Industry” address at the Options Industry Conference in Scottsdale, Arizona, and painted a more optimistic picture than recent portrayals in the press.   Yes, options volumes for 2017 are predicted to be flat to slightly up, a bit more than 4 billion contracts, but to Schwartz, that is a good number given the lack of volatility. Another positive is that more institutional users are appearing in the options market. According to his calculations based on regulatory filings, some 100 institutions enter options markets annually while 85-90 drop…

U.S. investors brace for mounting political risks as they decode Trump; Volatility Traders Shed VIX Positions as Markets Are Eerily Calm; The Volatility Limbo Newsletter,Options

Lead Stories U.S. investors brace for mounting political risks as they decode Trump David Randall and Jennifer Ablan – Reuters Barry James built up his $4 billion mutual fund largely by studying balance sheets, earnings and market share. In the last few weeks, however, he has realized that he must look at a new force in the market: U.S. President Donald Trump. /goo.gl/iGS2KU ****SD: Out of everybody, I bet Nick Cage and Tom Hanks could figure out how to decipher the code of Trump. Volatility Traders Shed VIX Positions as Markets Are Eerily Calm Carolina Wilson – Bloomberg Assets in…

Maker or Taker? Blog,Commentary,Feature,Mwiki

“Maker – Taker” is a market model that rewards market participants for offering liquidity – “making” – and penalizes them for “taking” market liquidity.   Many makers are also takers. It is the way of the markets, and the way of the world.   Are you a maker, or a taker? It is a good question to ask. While we all do both, it is our outlook that defines whether we are makers or takers.   For example, are you a market participant who just goes home at the end of the day, or do you find a way to…

Hints of Fear in Bank Stock Options Ahead of Earnings; Chicago’s vast exchanges have got their eyes on retail FX customers; Maker-Taker Needs To Go Newsletter,Options

Lead Stories Hints of Fear in Bank Stock Options Ahead of Earnings Gunjan Banerji – WSJ As earnings season kicks off this week, the options market is signaling that a pause may be looming for the euphoric rally in bank stocks. Since mid-December, investors have boosted the number of bearish options on financial shares at a faster pace than for bullish contracts—a reversal from the weeks immediately after the U.S. election. jlne.ws/2iktztv ****SD: Well, there are higher expectations to beat, right? Successes already baked in, etc. Chicago’s vast exchanges have got their eyes on retail FX customers Andrew Saks-McLeod –…

Room For One More: MIAX Due To Open 15th US Options Exchange Blog,Options

MIAX options, the youngest exchange group in the US options industry, announced plans to launch MIAX Pearl in the fourth quarter. The new exchange, introduced at the Options Industry Conference in Palos Verdes, Calif., is pending regulatory approval. MIAX Pearl will offer a maker-taker pricing model. While much is made of the proliferation of US options markets and possible oversaturation of exchanges, MIAX executives believe they need to create the new market to continue their growth. Shelly Brown, senior vice president, strategic planning for MIAX, said MIAX was created in 2012 when 75 percent of the options volume flowed through…

John Lothian Newsletter: Financial PR spins a new global story; Markit acquires interest in commodities price reporting agency PRIMA; Innovation chief Bradley departs Eurex John Lothian Newsletter,Newsletter

First Read The Economy Is Rigged, and Other Presidential Campaign MythsBy N. GREGORY MANKIW – NY TimesIf you want to learn about the economy, there are good and bad places to go. Probably the worst source of reliable information is the current crop of presidential candidates. Dissembling and exaggeration are no strangers to politics, but this year’s campaigns have been particularly egregious.goo.gl/4pwDNM ***** There used to be lies, damn lies and statistics. Now there are just damn lies. ++++ CHX Confirms SNAP Auction Starting DateBusiness WireThe Chicago Stock Exchange (CHX) confirmed that May 13 is the date it will introduce…

Swimming With the Sharks in Miami Beach: Shelly Brown of MIAX Talks Competition Interview,Options

Sarah Rudolph

As the the newest independent options exchange, having launched on December 7, 2012, MIAX has had impressive growth considering the odds of competing against 11 other established exchanges. We spoke with Shelly Brown, senior vice president, strategic planning and operations at MIAX, at the Options Industry Conference in Miami Beach earlier this month about what the exchange is doing to stay competitive and about the challenges the industry is facing as a whole. The exchange’s market model is what sets it apart, Brown said. MIAX is a pro-rata allocation, conventional fee exchange with payment for order flow, closest to the…

Lucky Number: ISE’s Mercury Set To Be 13th Options Exchange Blog,Options

The expanding field of equity options exchanges will grow to 13 around Q3 of this year, as the ISE launches its third options exchange, ISE Mercury. The exchange, originally set for the second quarter of the year, will give the ISE three options platforms, one for every existing type of fee structure. The ISE is now only waiting for regulatory approval. The competition is heated in the options space. ISE has recently focused on market segments outside of the payment-for-order flow, rebate style format. But as this structure has become a much larger segment of the market, ISE has adapted…