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Tag Archives: NYSE Arca

The CAT Scratches: Fees for Options Exchanges Blog,Options

I saw a MIAX press release about Consolidated Audit Trail (CAT) fee disputes and it got me thinking why there would be reason for dispute. Please note, I don’t know if the following is on any exchange’s collective mind, but it seems like point of contention. I’ll set the table with this stat from a Reuters story earlier this month – “Options execution venues with more than 1 percent of industry volume will pay $57,615 per quarter and those with less than 1 percent will pay $39,612 per quarter.” “Per venue” means per medallion/exchange. That means that MIAX would pay…

ETF Trading Glitch Fuels Worries Over Modern Markets; Teza sells high-speed trading as lucrative business sours; ICE delays launch of clearing for London gold benchmark John Lothian Newsletter,Newsletter

First Read Bits & Pieces By John J. Lothian The LME came to Chicago yesterday for a straightforward marketing presentation and attracted a room full of Chicago futures market participants. They laid out their business, plans and factors impacting them in a well done program. The big news out of LME is the June 5 launch of its precious metals futures; gold and silver. Here is a FAQ about their offering. John Lothian News is bringing its MarketsWiki Education World of Opportunity series to New York on July 11 and 12. Sign up will open up June 1. Nasdaq will…

NYSE Arca Suffers Glitch During Closing Auction; High-Frequency Traders Fall on Hard Times; Threat or Opportunity? Blythe Masters Talks Blockchain Jobs Impact John Lothian Newsletter,Newsletter

First Read 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. I…

China’s Markets Are Tamed—but Not Tempting; Chinese hackers charged with theft from Wall Street law firms John Lothian Newsletter,Newsletter

First Read Multiple Buyers, Not One, Influenced Most Active E-Mini Move of 2016 Alexander Osipovich – WSJ A sharp move in stock-market futures that fueled the Dec. 7 buying in U.S. equities likely reflected trading by multiple buyers, said a market-data firm that shared its analysis with The Wall Street Journal, a shift from its prior conclusion—published by the Journal—that a single buyer was behind the move. The firm, MayStreet LLC, said its initial analysis, which characterized the event as a single $1.8 billion trade with one unknown buyer behind it, was based on a misunderstanding of how CME Group…

Clearing Evolution: Michael McClain on the changes at OCC Interview,Options,Video

Industry players are gearing up for this year’s Options Industry Conference. One of the key speakers at the event is Michael McClain, president and COO of The Options Clearing Corporation. We talked with McClain in advance of the conference about the changes at OCC and their effect on its resilience and risk management capability. He also looked at securities lending, options education, and the controversy over OCC’s capital plan. The company has made a number of management changes since it was designated a Systemically Important Financial Market Utility (SIFMU). The changes include increasing the number of public directors. The significant…

A Breakthrough for Institutional Investors Trading SPY Options Blog,Options,Topics

Sarah Rudolph

Institutional investors such as pension funds and mutual funds are a crucial step closer to being able to take large positions on SPY options, which overlie the SPDR S&P 500 ETF Trust.  The Financial Industry Regulatory Authority (FINRA) has just received approval to eliminate position limits on the options, which were previously set at 900,000 contracts. NYSE Amex Options was the first exchange to file for and receive approval to eliminate position and exercise limits for the SPY options, in August 2012.  The other options exchanges followed and received approval as well. However, FINRA still had position limits on their…

JLN Options: Brazil Weighs Buying Coffee Through Options After Price Plunge Newsletter,Options

Lead Stories Brazil Weighs Buying Coffee Through Options After Price PlungeBloomberg NewsBrazil is considering introducing coffee options allowing growers in the world’s top producer to sell beans to the government at a fixed price after futures plunged in New York, according to the Agriculture Ministry. http://jlne.ws/19ZB5AI Futures traders bet Fed to hike rates as early as September 2014ReutersThe U.S. Federal Reserve is likely to start raising short-term interest rates as soon as September 2014, months before most policymakers at the Fed itself expect to do so, based on trading in rate futures at CME Group Inc.http://jlne.ws/12hDdxe 5 Simple Questions to…

JLN Options: Supreme Court Denies ISE Appeal On Index Options Dispute Newsletter,Options

Lead Stories Supreme Court Denies ISE Appeal On Index Options DisputeJacob Bunge and Brent Kendall, Dow Jones Business News (via NASDAQ)The U.S. Supreme Court has decided not to take up a long-running legal battle over an exchange’s right to trade lucrative options contracts linked to stock indexes.http://jlne.ws/16v3Y90**CBOE press release is below. -JB Low Volatility Is Depressing Options SellersTyler Craig, InvestorPlaceBarring the occasional spike to the high teens, the CBOE Volatility Index (CBOE:VIX) appears to have found a new home in the 12-14 zone this year.While the low-volatility regime settling over Wall Street might be applauded by bull market lovers, though,…

JLN Options: Options Exchange ISE Turning to ETFs Newsletter,Options

LEAD STORIES Options Exchange ISE Turning to ETFsBrendan Conway, Barron’sThe International Securities Exchange, neck-and-neck for the number three spot in the U.S. stock-options market, just rechristened its product-development group as ISE ETF Ventures, if that gives you an idea where the options exchange sees its future.http://jlne.ws/Vqr5rI Wall Street vs. commodity traders at U.S. watchdog swaps hearingDouwe Miedema, ReutersWall Street banks and Chicago commodity traders on Thursday will each try to sway the top U.S. derivatives regulator their way at a public hearing on whether new rules unduly favor one of the two rivals.http://jlne.ws/Vqppyn Low Volatility Here to Stay? VIX Futures…