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Tag Archives: manipulation

Robinhood evaluation?!?; VIX rigging talk Newsletter,Options

Observations & Insight Chicago Venture Capital Firms Are Funding Fintech Sarah Rudolph – JLN Chicago may not be doing as well as some other cities in certain areas, but it is leading the charge in technological innovation in the financial world and in the crypto world. Several Chicago-based venture capital companies took part in a panel on financial innovation moderated by Chuck Mackie, consultant at Maven Wave Partners and contributing editor to John Lothian News, at The Trading Show Chicago on Thursday. DRW works with companies on development in the later stages. Its Digital Asset Holdings venture, headed by Blythe…

VIX Isn’t Broke; CAT Privacy Bill; WMDs for next crash Newsletter,Options

Observations & Insight The State of Options Market Making in One Image; Happy 45th Anniversary of the Black Scholes Formula At the Options Industry Conference in Amelia Island, Fla., Trade Alert President Henry Schwartz gave his annual “State of the Industry” presentation. The presentation is always chock full of great graphs and information – the word cloud image above is always a favorite. In the picture, liquidity providers are sized according to their industry presence – the bigger the firm’s book, the bigger its name appears. Schwartz said Susquehanna is not sized to the same scale as the rest because…

A Decade on From the GFC – John Davidson, OCC; Cleverness vs. Manipulation? Newsletter,Options

Observations & Insight Miscellany of the day Spencer Doar – JLN According to the most recent post on the Bank of England’s Bank Underground blog, the “volatility exposure of leveraged ETPs has fallen by around three quarters since early February.” Another quote from the piece: “In addition to making spikes in volatility sharhper, VIX ETPs also have the potential to make them shorter-lived.” Recall that SVXY, one of the key VIX ETPs (and a surviving inverse instrument), started targeting -0.5 leverage instead of -1 at the end of February. At the end of March, Cboe and Wall Street Horizon put…

VIX Manipulation Costs Investors Billions, Whistle-Blower Says; High-Speed Traders Profit From Return of Loophole at CME; Tighter monitoring for computer trading demanded John Lothian Newsletter,Newsletter

First Read Hits & Takes JLN Staff The SEC’s 2019 budget request of $1.658 billion is a 3.5 percent increase over 2018. The majority of that extra funding, $45 million, would go to “technology enhancements to support the agency’s cybersecurity capabilities, risk and data analysis, enforcement and examinations, and automation of business processes.”~SD The CFTC’s budget request of $281.5 million for fiscal year 2019 would support 716 full time employees. CFTC Commission Brian Quintenz pointed out that in FY 2016, the agency had 714 full time employees, 689 in 2017 and 670 this year.~JK Economist/Stanford professor/auction theorist Paul Milgrom received…

Chilton Calls for Lower Manipulation Standard in Commodity Cases Commentary,Regulation

John Lothian

“The time has come to ease the burden on our prosecutors, and to better protect consumers and markets” CFTC Commissioner Bart Chilton In a speech before the Institutional Investors Carbon Forum here today, Commissioner Bart Chilton of the Commodity Futures Trading Commission called for a unprecedented change in the legal standard required to prove manipulation cases in commodity futures cases. Chilton, citing the high burdens on prosecutors and the resulting dismal record of successful manipulation cases, called for a shift to an “easier to prove” legal standard. In support of his position, Chilton cited the fact that, in its 35-year…