Breaking News

Tag Archives: OIC

John Lothian Newsletter: VCs Hunt for the Next Unicorn on Snapchat; Citadel’s Ken Griffin: Hedge fund talent is there to snag; Germany’s School for Central Bankers Draws Risk-Averse Crowd John Lothian Newsletter,Newsletter

First Read Half Full: Trade Alert’s Schwartz Says Options Industry Has Growth OpportunitiesJim Kharouf, JLNToday’s options market is a mixed bag of some strong products gaining traction but, in general, the industry has slowed dramatically over the past decade. Henry Schwartz, president of Trade Alert, speaking at the 34th Annual Options Industry Conference in Palos Verdes, California on Wednesday, told the audience that options industry volume growth has slowed from 14.7 percent over the past 20 years, to 8.5 percent over the past 10 years, to just 2 percent in the past 2-year period. Schwartz attributed the slowdown over the…

Bigger Picture: BATS Execs Willing To Collaborate To Expand Options Business Interview,Options

BATS Global Markets has a hand in both equities and options, and its options market, though relatively new, is holding its own among the growing list of options exchanges. John Lothian News’ Sarah Rudolph caught up with Kapil Rathi, a VP of options business strategy at BATS (along with Jeromee Johnson), and Bryan Harkins, BATS executive vice president and head of U.S. markets, at the Options Industry Conference in Miami Beach earlier this month, where she spoke to them about BATS’ plans for a new exchange, how to grow the pie in the options space, BATS’ new proposal for small-cap…

Swimming With the Sharks in Miami Beach: Shelly Brown of MIAX Talks Competition Interview,Options

Sarah Rudolph

As the the newest independent options exchange, having launched on December 7, 2012, MIAX has had impressive growth considering the odds of competing against 11 other established exchanges. We spoke with Shelly Brown, senior vice president, strategic planning and operations at MIAX, at the Options Industry Conference in Miami Beach earlier this month about what the exchange is doing to stay competitive and about the challenges the industry is facing as a whole. The exchange’s market model is what sets it apart, Brown said. MIAX is a pro-rata allocation, conventional fee exchange with payment for order flow, closest to the…

Options Industry Perspectives: Exchange Leaders Trade Viewpoints at OIC 2015 Blog,Options

Sarah Rudolph

At the Options Industry Conference this year, the exchange leaders panel directly followed a presentation by Andy Nybo, head of derivatives at The Tabb Group, that offered a rather bleak look at the options industry. Total volume year-to-date was down 8.7 percent compared to a year earlier, bid-ask spreads have been getting wider, and options exchanges are finding it difficult to compete in a field of 12-going on-14 players. Given that “dark cloud” the industry appears to be under, moderator John Lothian asked the panel what the industry could do to turn it around. Exchange leaders agreed that the lack…

OIC Conference Preview: BOX CEO Ed Boyle on how the options industry is working to address market challenges Interview,Options,Video

At this year’s Options Industry Conference in Miami Beach, participants will discuss such crucial industry issues as market quality and deteriorating volumes, the implementation of Dodd-Frank and Reg SCI, technology and risk management. The conference is hosted by BOX Options Exchange, whose new CEO, Edward Boyle, spoke with John Lothian News about some of these issues and what’s being done to address them. Deteriorating markets are a concern of the whole industry, and the conference is a great place for those in the industry to get together to talk about that and other problems, Boyle said. “A lot of people…

BATS takes a swing at Flash Boys and options growth Commentary,Options

Jim Kharouf

BATS Global Markets has been in the spotlight lately, which has many at the exchange wondering why it had to be the one that was closest to Brad Katsuyama’s trading terminal in New York. In the wake of the thunderstorm caused by Michael Lewis’ book “Flash Boys,” and accusations that named BATS as the exchange that was part of the “rigged stock market” claim, Jeromee Johnson, BATS’ vice president, head of BATS Options market, says such charges are flat out wrong. Lewis tells the story of Katsuyama, now president and CEO of IEX exchange, how his cash equity orders would…

OIC Educational Program Evolves With the Industry Blog,Options

OIC screenshot

(This is part two of an article derived from an interview with Alan Grigoletto, vice president of education at the OIC. Part one focused on the OIC’s educational efforts in China.) It was a good year for the options industry in 2013. In fact, it was the second best year in terms of volume, despite volatility that was about 50 percent lower in 2013 than it was during the industry’s 2011 record year. In other words, 2013 appeared to have all the makings for a down year in options. But what ailed many other markets, low interest rates, is what…

Overwrite strategies drove volumes in 2013 Blog,Options

Sarah Rudolph

One result of the low to no-interest rate environment has been a shift toward options overwrite strategies. “In a typical portfolio you’ll have a 60-40 split of equities to fixed income.  Fixed income essentially returned nothing to your portfolio [in 2013],” said Alan Grigoletto, vice president of education at the Options Industry Council. “I think a lot of people got very antsy about the fact that interest rates were staying low and we had QE Infinity going on. People said, ‘I’m not really making anything on this, I’m not making anything on cash — is there some alternative we can…

Options – and the Options Industry Council – Come to China Blog,Options

View of the Pudong Financial district from the Shanghai World Financial Center

(This is part one of an article derived from an interview with Alan Grigoletto, vice president of education at the OIC, and Mary Savoie, the OIC’s executive director. Part two will focus on the options industry in the U.S. and the OIC’s new educational program there.) The Options Industry Council has been a leader in educating retail investors in the U.S. in options for many years. For the past four years, however, it has been exploring how best to bring options education to China. This year, the effort becomes even more important, as China prepares to launch its first options…