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Tag Archives: market making

Goldman exits options market making; Historic volatility; SocGen struggles Newsletter,Options

Lead Stories Goldman Sachs to Withdraw From Part of U.S. Options Market Brian Louis – Bloomberg Will stop serving as a market maker on U.S. exchanges; Traders struggling with high costs, low volatility in options Goldman Sachs Group Inc. will stop serving as a market maker on U.S. options exchanges, following others in exiting that business amid high costs, sluggish volume and low volatility. /goo.gl/hxa23m ****SD: WSJ here. What’s the tech angle? More bronze than gold? Other “Goldman struggles” news from Reuters – Goldman taps energy execs in bid to turn around commodities unit Historic Volatility Recently Dropped Below 1.7…

Vela to acquire Object Trading complementing its recent acquisition of OptionsCity; They’re The World’s Fastest Traders. Why Aren’t They Thriving?; Why Everyone’s Trading Volatility Newsletter,Options

Lead Stories Vela to acquire Object Trading complementing its recent acquisition of OptionsCity; Acquisition enables Vela to offer a comprehensive software and managed services solution across the entire electronic trading workflow Vela Trading Technologies LLC (Vela), an award-winning global leader in high performance trading, market data, and analytics technology, has signed a definitive agreement to acquire Object Trading, a global provider of a fully-managed Direct Market Access (DMA) platform, pre-trade risk controls, and analytics applications. /goo.gl/qzVNsV ****SD: Who’s going to be number three? My Spidey sense is tingling a bit. When Brian Cassin, Vela’s head of product strategy, spoke at…

Goldman-Backed High-Speed Trading Network Sold for $39.5 Million; The Dutch Have Solutions to Rising Seas. The World Is Watching.; HFT – Not so flashy anymore John Lothian Newsletter,Newsletter

First Read Eurex CEO Sees Plenty of Structural Growth Potential JohnLothianNews.com “We also see a lot of structural growth potential… If we look at the equity index complex, there is a clear trend of many asset managers moving to passive investment structures. We see that … on the derivatives side [adding] new liquidity pools to global index families.” Thomas Book, CEO of Eurex Frankfurt AG and Eurex Zurich AG, believes the exchange can take advantage of the opportunities presented by a changing European landscape. Low interest rates for a long time equated to low interest in Eurex’s fixed income offerings…

HFT – Not so flashy anymore; Vicious VIX; JPM Head Quant Warns Of “Catastrophic Losses” For Short Vol Strategies Newsletter,Options

Observations & Insight An Excerpt of Note Spencer Doar – JLN I am re-reading “Liar’s Poker” because…I don’t really know why — maybe it’s just summer instinct with all these reading lists floating around. Anyway, about a quarter of the way in, there’s a notable anecdote from Michael Lewis’ training program at Salomon: “‘When you trade equity options,’ asked my friend Franky, ‘do you hedge your gamma and theta or just your delta? And if you don’t hedge your gamma and theta, why not?’ The equity options specialist nodded for about ten seconds. I’m not sure he even understood the…

UChicago Midwest Trading Competition: The Next Generation Gets a Taste Video,video

On April 8, the University of Chicago hosted its fifth iteration of the Midwest Trading Competition, drawing 102 students from some of the most prestigious colleges and universities across the United States and Canada. The students got a chance to test their algorithms using Trading Technologies’ TT Platform in a variety of simulations involving pairs trading and options market-making. But the event was more than just a fun way for smart kids to strut their stuff using real-world technology and market data. It was a rare networking opportunity for the students and sponsors — some of Chicago’s biggest prop shops…

Interactive Brokers Group Announces Decision to Cease Options Market Making Activities; Snap options set for strong demand on market debut; Newsletter,Options

Observations & Insight CME Group CEO Terry Duffy on Business and Interest Rates Under the Trump Administration JohnLothianNews.com With a new administration in place and a more optimistic outlook from the market community, CME Group is well positioned to succeed, according to CEO Terry Duffy. Whereas global regulatory efforts have served as a headwind for the industry since the financial crisis, now the United States is benefiting from the perception that the new administration’s stance on regulation will serve as an tailwind. There is much left to be determined, certainly, but even the shift to no new regulation as opposed…

Bonds and Stocks Might Not Be Singing to the Same Trump Tune; VIX Call Buying Picks Up as Stocks Hit Record Highs; Hong Kong Stock-Hedging Costs Tumble Before Chinese New Year Newsletter,Options

Observations & Insight OIC: Camelback 2017 OIC Now in its 35th year, the Options Industry Conference is the premier annual gathering for top-level management and trading professionals to exchange ideas, strengthen relationships and forge new connections. /goo.gl/MF4IGm ****SD: May 10-12. Now if only they could move the conference a few months and sync up with Spring Training… Lead Stories Bonds and Stocks Might Not Be Singing to the Same Trump Tune Luke Kawa – Bloomberg MOVE, VIX. Get out the way. The CBOE Volatility Index, a measure of the implied volatility of the S&P 500 Index commonly known as the…

S&P 500 Options Showing Little Fear Over Trump Policy…For Now; Investors Prepare for a Wild Stock-Market Ride; Liquidation risk hangs over oil and gas price Newsletter,Options

Lead Stories S&P 500 Options Showing Little Fear Over Trump Policy…For Now Tanvir Sandhu – Bloomberg S&P 500 options are showing little anxiety over Donald Trump’s policies over the next few weeks, even as rates options capture concerns, according to Bloomberg strategist Tanvir Sandhu. The smoothness of S&P 500 Index’s volatility term structure indicates complacency in factoring in policy shifts by the government, reminiscent of a similar formation three weeks before the U.S. election on Nov. 8 when opinion polls overwhelmingly predicted a Hillary Clinton win. bloom.bg/2keeFaj ****SD: “Never say never, because limits, like fears, are often just an illusion.”…

Jeremie Bacon on Taking the Reins at ORC Americas and Modular Technology Interview,Tech / HFT,Video

After a decade of running his own technology firm, Jeremie Bacon decided it was time for a new challenge. In May, he took the reins as president of Orc Americas, the Chicago-based subsidiary of Orc Group. Bacon sat down with JLN editor-in-chief Jim Kharouf to talk about why decided to leave the firm he co-founded, Backstop Solutions, a software-as-a-service company in the alternative investment space. Bacon said he was impressed with ORC’s established footprint in the industry and reputation it has built since its launch in 1987. He also likes the relatively new ownership structure of the firm. ORC, which…