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Tag Archives: OCC

OCC’s Evolving Leadership Role in the Options Industry Feature,Mwiki,Video,video

The OCC didn’t always position itself as a thought leader in the derivatives industry, but as exchanges’ business interests shifted over the years to multiple asset classes, OCC is one of the few organizations left that can bring its focus solely to bear on equity options.  In this video, OCC CEO and Executive Chairman Craig Donohue talks about the evolution of the OCC and the Options Industry Council. 

Regulatory Issues Confronting the Options Industry Feature,Video,video

The OCC has a number of regulatory initiatives it would like to accomplish in the coming years, and in this video Craig Donohue, OCC executive chairman and CEO, talks about two key calculations that need changing. First, regulators need to adopt a risk weighted asset calculation that better reflects the true exposure of a clearing member firm. Second, the OCC wants to make sure that the supplemental leverage ratio includes customer initial margin. The OCC is working on potential interpretive relief or narrowly tailored rulemaking in the interim to help ease the burden.     Produced by Mike Forrester

The Spread – Week of 4/23 to 4/27 Video,video

Who likes TV show theme songs (especially older ones that still live on through syndication)? If you don’t, well, shame on you, but watch this week’s episode of The Spread anyway for some updates on happenings in the options world. The stories referenced can be found below:  -Bloomberg – Options Traders Pile Into $80 Oil Bets as Trump Wild Cards Mount -OCC – A Decade After the Financial Crisis, These Lessons Can’t Be Forgotten -Cboe – Letter from Cboe CEO Ed Tilly and President Chris Concannon regarding VIX activity -Press Release – Matrix Executions Announces the Creation of a High Touch Trading Desk for…

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…

Vol or bust?; VIX lawsuits; Equity traders are killing it Newsletter,Options

Observations & Insight Miscellany of the Day Spencer Doar – JLN Cboe turned 45 years young and Russell Rhoads has a blog out with 45 facts about Cboe – I forgot seats were originally offered for $10,000. Using a U.S. Inflation Calculator site, the cost of a seat in 1973 is about $55,000 in today’s world. Bill Luby said in a tweet a ways back that he is working on more content for his VIX and More blog and will be dusting off the cobwebs soon. His most recent post is from May 2017. One in five financial institutions are…

Cybersecurity and Technology Upgrades – John Davidson, OCC Feature,Mwiki,Video,video

The OCC is in the process of making what is a big decision for a systemically important financial market utility (SIFMU) – how to best upgrade a tech stack responsible for clearing millions of options and futures contracts daily. In this video from JLN’s annual series with industry leaders, OCC President and Chief Operating Officer John Davidson talks about how the OCC is weighing its cloud vendor options, addressing cybersecurity concerns and the regulatory initiatives on the road ahead.   Produced by Mike Forrester Interview by Spencer Doar

OCC Re-Elects Craig Donohue as Executive Chairman Newsletter,Options

Observations & Insight The Future of Exchanges Will Feature More Collaboration, WFE Report Says Jim Kharouf – JLN Exchanges will have to spend more, share more and collaborate more in the coming years, according to a published report from the World Federation of Exchanges (WFE) and Oliver Wyman. The report, issued on Thursday at the 35th IOMA: The WFE’s Clearing & Derivatives Conference in Chicago focused on the recent trends for the exchange, CCP and market infrastructure providers since the 2008 financial crisis. /jlne.ws/2HwdDlQ ++++++ Editor’s Notes Our next episode of The Spread will be posted Monday. According to FIA…

The Future of Exchanges Will Feature More Collaboration, WFE Report Says Feature

Exchanges will have to spend more, share more and collaborate more in the coming years, according to a published report from the World Federation of Exchanges (WFE) and Oliver Wyman. The report, issued on Thursday at the 35th IOMA: The WFE’s Clearing & Derivatives Conference in Chicago focused on the recent trends for the exchange, CCP and market infrastructure providers since the 2008 financial crisis. It points out that five key themes will emerge in the coming decade: higher standards for market integrity; surveillance and supervision as both a regulatory function and customer service; broad industry cooperation and collaboration; near…

OCC Volume Up 15 Percent in March; Vol’s Bite; Goldman’s Vol View Newsletter,Options

Observations & Insight March 2018 Options Exchange Marketshare via OCC Lead Stories OCC Cleared Contract Volume Up 15 Percent in March OCC OCC, the world’s largest equity derivatives clearing organization, announced today that total cleared contract volume in March reached 442,945,572 contracts, a 15 percent increase from March 2017. OCC’s year-to-date volume is up 32 percent with 1,400,345,396 cleared contracts in the first quarter of 2018, compared to 1,058,670,212 contracts in the first quarter of 2017. /jlne.ws/2GJUrmT ****SD: It will be nice to have volatility and increased activity to talk about at OIC this year. Volatility’s Bite Returns Ginger Szala…