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Tag Archives: OCC

OCC Continues To Clear the Path for the Exchange-Listed Options Industry; Dow and S&P double number of 1% moves in all of 2017 Newsletter,Options

Observations & Insight Miscellany for 3/27 Spencer Doar – JLN Not much of a surprise, but during the last week of talk about a potential trade war, the volatility of FXI – the main China ETF for options – has been significantly higher than SPX volatility, though still in an 8 handle trading range. Readings for FXI vol have been between 23 and 31, while VIX has moved between 16 and 24. Yesterday, Comex April gold and May copper futures settled on strikes and since it was options expiration day, calls at 1355 and 2.97, respectively, were exercised and puts…

Bank regulators to revise capital rules for trading risk; The Growing Influence of Asia In Derivatives Trading Newsletter,Options

Observations & Insight Congressional CFTC Budget Decision Lacks Vision and Reason John Lothian – JLN A reasonable person could see that the U.S. Commodity Futures Trading Commission needs an increase in its budget to address the growing responsibility it has acquired over US markets in recent years and the dramatic development and investment in fintech and cryptomarkets. A reasonable person, Democrat or Republican, would vote for the modest increase the CFTC requested unless they suffer from a chronic case of market myopia. But alas, the budget passed by the U.S. House of Representatives cuts the CFTC’s funding by $1 million…

The Spread – The (Out)Take from FIA Boca Commentary,Video,video

After much travel and a spell of ill health, we can confidently say The Spread is back in action. Our “weekly” options news recap will be much more of a weekly affair now. (Flu season is pretty much over, right?) The JLN crew was at FIA Boca last week and your humble host really struggled without our usual teleprompter rig. As such, welcome to a rambling, stumbling version of The Spread that includes some outtakes from my poor pool performance. If you just want the behind the scenes action, skip to the last minute. The following are stories referenced in…

Takeaways From Recent Options Volume Surge; Update on Short Vol Poster Child; VIX seen as incomplete measure Newsletter,Options

Observations & Insight An Array of Recommended Tangents for International Women’s Day Spencer Doar – JLN The “Fearless Girl” statue on Wall Street turned one year old today. Let’s dedicate today’s newsletter to the embodiment of her ideals, shall we? To kick it off, here’s the WaPo with The Fearless Girl statue turns one today. Here’s what she’s inspired. The “failing” NY Times (hah – NYT brought in $1 billion of subscription revenue in 2017) has an all-encompassing outlook – International Women’s Day 2018: Pride, Protests and Pressure. Women in Spain are on strike (link to BBC story). This human…

Insider trading has been rife on Wall Street, academics conclude; Singapore Bourse Seeks to Defuse Tensions With Indian Counterpart; Booming Demand for Clearing Options, Futures Contracts Fuels OCC’s Growth John Lothian Newsletter,Newsletter

First Read Hits & Takes JLN Staff The National Stock Exchange of India will end its licensing arrangements with SGX, CME Group, Taiwan Futures Exchange and Osaka Securities Exchange, according to Bloomberg. Given the ongoing limited access to the Indian market, this can’t be good for NSE, even with a new tax-free trade zone. ~JK ICE is set to relaunch the National Stock Exchange, purchased last year, as NYSE National, a maker-taker pricing model.~JK Cliff Histed, a partner at K&L Gates LLP will be moderating the Enforcement Actions panel at the ABA’s “2018 Blockchain Technology, Digital Currency, and ICO National…

The Spread – Week of 1/29 – 2/2 Video,video

We’re baaaack! The flu season stinks but this episode of The Spread doesn’t. The Spread is a brief recap of some of the notable activity in the options world.  The following are stories referenced in this week’s episode of The Spread: MarketWatch – Volatile enough? Wall Street’s fear gauge on track for largest weekly rise in 5 months Cboe – Cboe Global Markets Sets Several Daily Volume Records on Friday, February 2 Bloomberg – VIX Securities Get Traded Like Crazy After Volatility Picks Up Traders – Fragmentation and Liquidity Issues Must Be Addressed to Maintain a Resilient Listed Options Market…

OCC cleared volume up 42 percent; We actually don’t know; Beware low vol or long live low vol? Newsletter,Options

Observations & Insight January 2018 Options Exchange Marketshare vs January 2017 via OCC ++++++ Detailed January Volume Breakdown via OCC Lead Stories OCC Cleared Contract Volume Increased 42 Percent in January OCC OCC, the world’s largest equity derivatives clearing organization, announced today that cleared contract volume in January was up 42 percent from January 2017 with 479,812,469 contracts. Average daily volume at OCC is up 35 percent in 2018 with 22,848,213 contracts. OCC cleared futures volume is up 23 percent in January with 11,907,702 contracts. OCC’s stock loan program reported strong volume numbers with 233,482 transactions in January, up 29…

OCC plans cash management fee; Short-vol crushed in January; Selling time to traders Newsletter,Options

Observations & Insight Slippery Slope: Let’s Let Markets Decide On New Contracts Jim Kharouf – JLN Do exchanges need further regulation on the contracts they launch? That is the question the Commodity Futures Trading Commission is addressing now with the so-called self-certification process for new contracts. Exchanges have not faced this type of scrutiny over the launch of a new product in recent history until Bitcoin. Several new contract ideas have been squashed by legislation or regulation, including movie futures and onion futures way back when. But for the most part, exchanges are allowed to introduce new contracts as they…

Options Market Is Skeptical About High-Yield Bonds; OCC plans minimum cash contributions to clearing fund; German-Russian man admits to Dortmund team bus bombing Newsletter,Options

Observations & Insight The Spread – Week of 1/1/18 JohnLothianNews.com A new year, a new Spread! The Spread is a brief recap of some of the notable activity in the options world. The following are stories referenced in this week’s episode of The Spread: Bloomberg – Five Things We Learned About MiFID II on Its First Day at Work OCC – OCC 2017 Total Cleared Contract Volume Up Four Percent, Third Highest Volume Year Ever The New York Times – When Forecasters Get It Wrong: Always See It Market – SKEW Index Continues To Diverge From VIX Index Northwestern’s Kellogg…