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Legal battle over Credit Suisse ‘volatility’ product expands to second firm Newsletter,Options

legal gavel

Lead Stories Legal battle over Credit Suisse ‘volatility’ product expands to second firm Trevor Hunnicutt – Reuters The legal fight over a complex Credit Suisse financial instrument betting on stock market swings is expanding, with a new lawsuit targeting one of the product’s service providers. An investor on Thursday sued both the bank and the service provider, a unit of Janus Henderson Group PLC, over the VelocityShares Daily Inverse VIX Short-Term Exchange-Traded Note (ETN). jlne.ws/2HGN6RP Hey, Credit Suisse—Just Because You Disclose the Risks of Your Volatility ETN Doesn’t Mean You Can’t Be Sued Crystal Kim – Barron’s Investors were burned…

Cyber threats force US clearing house on to cloud Newsletter,Options

x~OBSERVATIONS Tempers Flare in U.S.-EU Spat Over Clearinghouse Supervision Regulators trade public barbs at industry conference in Florida; CFTC Chairman J. Christopher Giancarlo has repeatedly said that European supervision of U.S. entities would be unacceptable. Gabriel T. Rubin – WSJ (SUBSCRIPTION) Tensions between the U.S. and European Union over the supervision of clearinghouses boiled over publicly on Wednesday, with top regulators trading barbs and recriminations at an industry conference. https://goo.gl/AVF1jG ***SD: We covered the rowdiness and insults traded at yesterday’s “10 Years On” panel featuring Barney Frank. While that was quite the memorable experience, the above spat is the one…

What’s the Biggest Trade on the New York Stock Exchange? The Last One John Lothian Newsletter,Newsletter

First Read Hits & Takes JLN Staff CFTC Chairman Chris Giancarlo opened his speech to the FIA International Conference in Boca Raton by honoring Leo Melamed and his contributions to the industry upon which all market participants benefit. Leo is the giant “upon whose shoulders we all stand,” Giancarlo said, noting Leo had announced his retirement from the CME Group’s board. It was a classy display from the popular CFTC Chairman. Kudos Mr. Chairman!~JJL During the lunch at the FIA Conference, before the presentation by the journalist and author Walter Isaacson, a tribute video was shown honoring Mike Dawley, who…

ETFs not to blame for market turbulence, says BNY Mellon Newsletter,Options

turbulence

Observations & Insight Boca Takeaways Spencer Doar – JLN The “Ten Years On: A Retrospective View of the Financial Crisis” panel led to the most fireworks of the conference thus far. We are 10 years on from the crisis, and it is extremely clear that no one views those events the same way. Paul Atkins, CEO of Patomak Global Partners, at one point took issue with former Congressman Barney Frank’s take on Fannie and Freddie, saying, “You should take an accounting class,” to which Barney Frank shot back, “Don’t be so condescending.” The whole panel went that way. You have…

Havens Just Aren’t Safe Anymore, Goldman Says; Hedge Funds Bet on Volatility Newsletter,Options

danger zone

Lead Stories Havens Just Aren’t Safe Anymore, Goldman Says Eric Lam – Bloomberg No traditional havens had positive beta to VIX lately: Goldman; Derivative hedges will become more important, strategists say Traditional safe havens haven’t been working out for investors in the latest ructions in financial markets, strategists at Goldman Sachs Inc. warned. /goo.gl/EBC7g4 ****JB: Business Insider here. Hedge Funds Bet on Volatility Gunjan Banerji – WSJ Hedge funds are betting that the recent turbulence in U.S. stocks will persist—a reversal after wagering for more than two years that the equity market will remain calm. Leveraged funds, a category that…

New Class Action Lawsuit Alleging Systemic Manipulation of Multi-Billion Dollar VIX Index Derivative Market Announced by Cohen Milstein Newsletter,Options

class action

Lead Stories New Class Action Lawsuit Alleging Systemic Manipulation of Multi-Billion Dollar VIX Index Derivative Market Announced by Cohen Milstein Press Release As controversy surrounding the CBOE Volatility Index (“VIX Index”) continues to grow, a new federal class action lawsuit filed late Friday alleges widespread manipulation of the VIX futures and options market, resulting in hundreds of millions of dollars in losses for investors across the country. The litigation, filed on behalf of investors damaged by this manipulation, is the first lawsuit concerning this market manipulation to allege violations of the Commodity Exchange Act, which prohibits market participants from improperly…

Spot Trading Closes; EU Fintech Regulatory Roadmap; EU probes UK derivatives tax treatment John Lothian Newsletter,Newsletter

First Read Renato Mariotti for Illinois Attorney General; A Former Prosecutor and Current JLN Reader Is The Best Choice For Illinois AG John Lothian – JLN Democratic Attorney General candidate Renato Mariotti stopped by the John Lothian News offices in the Chicago Board of Trade Building on Tuesday, March 6 for a sit down video interview. He has been a John Lothian Newsletter reader since 2012, and he used the market and industry knowledge he gained from reading the newsletter to bolster his success as a federal prosecutor. Mariotti is a former prosecutor in the US Attorney’s office in Illinois…

HKEx May Have Reached Its Peak; Crypto Could Be Lifeline for CHX; Hundreds of European stocks barred from dark pools John Lothian Newsletter,Newsletter

First Read Statement on Potentially Unlawful Online Platforms for Trading Digital Assets Divisions of Enforcement and Trading and Markets SEC Online trading platforms have become a popular way investors can buy and sell digital assets, including coins and tokens offered and sold in so-called Initial Coin Offerings (“ICOs”). The platforms often claim to give investors the ability to quickly buy and sell digital assets. A number of these platforms provide a mechanism for trading assets that meet the definition of a “security” under the federal securities laws. If a platform offers trading of digital assets that are securities and operates…

Cohn leaving White House; Dash Financial Technologies buyout; Crypto a commodity – judge John Lothian Newsletter,Newsletter

First Read Bitcoin and Blockchain: A WILD Opportunity Sarah Rudolph – JLN Bitcoin is not at the dizzying high it was back in December, but interest in cryptocurrencies and blockchain is still strong. The world of crypto and distributed ledger technology keeps expanding, with CME and Cboe now trading bitcoin futures, companies getting into initial coin offerings, cryptocurrency meetups forming, and the list of cryptocurrencies getting longer every week. Women In Listed Derivatives (WILD) and Morgan Lewis jointly hosted a panel on the future of blockchain and cryptocurrencies Tuesday evening to a packed house. The main takeaway on cryptocurrency from…