Breaking News

Tag Archives: OCC

OCC Lingo: SIFMU Stands For Clearinghouse Changes Interview,Options,Regulation,Video

The OCC was designated a systemically important financial market utility (SIFMU) in 2012. That has meant some big changes at the organization, along with challenges in risk management and credit and liquidity resources. John Lothian News spoke with John Fennell, executive vice president, financial risk management at the OCC, formerly the Options Clearing Corporation, about what the organization is doing to insure that it meets these and other regulatory obligations. “As a SIFMU, we need to make sure we have continuous access to liquidity sufficient to run the business,” he said, “So that even in a failure we can meet…

John Lothian Newsletter: OCC owners want dibs on half the pie; Jon Corzine Considers Launching Hedge Fund; Clearing houses hit back at European plans John Lothian Newsletter,Newsletter

First Read Dodd-Frank in Action: Swap Dealer Risk Management Reviews Doug Ashburn – JLN The first few years after the signing of the Dodd-Frank Act, the the narrative was all about the future – how an estimated 400 rulemakings would be implemented and how participants would be affected. The future is here, as financial entities begin grappling with the new regulations. One such newly-implemented rule requires swap dealers, major swap participants (SD/MSPs) and futures commission merchants (FCMs) to undergo risk management program reviews. If you are keeping score at home, the SD/MSP reviews are required under CFTC Reg. 23.600 and…

John Lothian Newsletter: Virtu seeks valuation of $2.59 billion; Bank of America accused of ‘tarnishing’ Merrill Lynch; Accused Goldman Code Thief Takes On Vance After Defeating U.S. John Lothian Newsletter,Newsletter

First Read Connecting: HKEx’s Li Said It Will Help Connect To China’s Trillions JohnLothianNews.com Hong Kong Exchanges and Clearing is all about connecting. HKEx’s CEO Charles Li says his exchange is the linchpin that connects mainland China’s markets with the rest of the world. Li, who spoke with John Lothian News editor-in-chief Jim Kharouf at the FIA Boca conference, said his exchange is about strategic positioning with China and taking advantage of the explosive growth it sees, especially with the London Metal Exchange firmly integrated into its business. “Our job is to find a way to make that connection,” Li…

Boca Bits & Pieces, Day Two Blog,Commentary

Wednesday’s big news came from Nasdaq, which announced plans to enter the energy futures market, challenging the dominance of the CME and ICE. Named Nasdaq Futures (NFX), the new market will launch around midyear with support from leading energy companies. “What do the CME, ICE and Hillary Clinton have in common?” Nasdaq’s CEO Bob Greifeld asked reporters. His answer? “All seem to have a monopoly on their exchanges.”   “We’re here to disabuse you of that idea,” he added. “Monopolies are against the natural order of competitive forces.” Not one of Nasdaq’s customers wanted the new exchange to be a…

JLN Options: Traders Brace for End of Quiet After VIX’s Biggest Drop Newsletter,Options

Observations & Insight OCC Announces Cleared Contract Volume Declined 13% in February CHICAGO (March 2, 2015) – OCC announced today that total cleared contract volume in February was 306,531,839 contracts, a 13 percent decrease from the February 2014 volume of 350,507,077 contracts. OCC’s year-to-date average daily cleared contract volume is down 9 percent from 2014 with 17,049,163 contracts. Options: Exchange-listed options volume reached 302,527,974 contracts in February, a 12 percent decrease from February 2014. Equity options volume for the month was 275,262,981 contracts, a 10 percent decrease from February 2014. Average daily options volume this year is down 8 percent…

John Lothian Newsletter: Singapore Exchange chief Magnus Böcker to leave in June; Big Banks Face Scrutiny Over Pricing of Metals; Flash Boys Help Markets, Not Just Themselves, BOE Study Finds John Lothian Newsletter,Newsletter

First Read Trade Talk: What’s in the Basket? Bill Campbell, Fixed Income Solutions Director, Trading Technologies The March-June 2015 CBOT Treasury bond futures roll is generating a lot of buzz. Most people are used to trading the Treasury calendar spreads 1:1, and the current roll is trading 3:2. How is this possible? The 1:1 was so easy to calculate in your head, and now they say you have to trade it 3:2? The five-year gap Between early 2001 and early 2006, the U.S. Treasury did not issue any Treasury bonds. Nine years later, that gap comes into play because now…

John Lothian Newsletter: As ‘Spoof’ Trading Persists, Regulators Clamp Down; US launches crackdown on pension adviser conflicts; Cyber criminals target trading algorithms John Lothian Newsletter,Newsletter

First Read A Wrinkle in the OCC’s Capital Plan? Doug Ashburn – JLN Friday was the last day to file a comment letter to the Securities and Exchange Commission on a capital raising plan, and two of the 12 U.S. options exchanges have voiced an objection. On January 26, 2016, the SEC published and sent out for comment a proposed rule change at the Options Clearing Corp. that would allow it to raise its target capital reserve from $25 million to $247 million. Under the proposal, the five legacy “equity holder” exchanges – CBOE, ISE, NASDAQ OMX PHLX, and the…

Mostly Sunny: MIAX Options Exchange Grabbing Some Market share Blog,Options

As options exchanges jostle for position in a crowded field, the monthly OCC options market share report sometimes tells an interesting story. MIAX Options Exchange is one of them. MIAX posted total equity options market share of 4.38 percent in January, a nice jump from 2.65 percent a year earlier, according to the OCC Options Exchange market share data. Another notable leap was at BATS, which posted an 8.78 percent market share in January, up from 3.28 percent a year earlier, and up from 6.3 percent in December. (See Kansas City Swinging Hot BATS – http://jlne.ws/1LIKSPh) And it’s not just…

John Lothian Newsletter: Regulator to Review Leverage Limits for Currency Trades; CFTC approves TOCOM as an FBOT; Banks Must Bear the Risk of Derivatives Losses, CME Paper Says John Lothian Newsletter,Newsletter

First Read SEC Announces Charges Against Standard & Poor’s for Fraudulent Ratings Misconduct SEC The Securities and Exchange Commission today announced a series of federal securities law violations by Standard & Poor’s Ratings Services involving fraudulent misconduct in its ratings of certain commercial mortgage-backed securities (CMBS). jlne.ws/1um1vFI ***** Charges come how many years later? ++++ NYSE Unveils New Trading Room By Kristen Scholer New year, new digs for traders at the New York Stock Exchange. The NYSE, a subsidiary of Intercontinental Exchange Inc.ICE -0.68%, debuted a brand new trading room Tuesday morning before the opening bell. The space, dubbed “The…