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Tag Archives: options

Just Floored: Who Says Jeff Sprecher hates open outcry? Blog

Open outcry is still alive and well in New York. The New York Stock Exchange opened a new trading floor for the NYSE Amex options market this week, a completely renovated space that also houses: NYSE’s US cash equities, ICE Futures US members, NYSE Arca’s customer service and the NYSE/ICE’s national operations center. The 7,000-square-foot space, with 22-foot ceilings, has been renamed “The Buttonwood Room,” a tip of the cap to the origins of the NYSE, and a shift away from the room’s less than flattering name of “The Garage,” as it was called when it originally opened in 1922….

Focused: What The Industry Knows About Transparency (Part 3) Interview,Regulation,Tech / HFT,Video

Back in November, the industry gathered for the annual FIA Expo event in Chicago. There, John Lothian News used an exhibitor booth (Thanks Cinnober!) as its studio to ask industry participants key questions about transparency issues in today’s markets. 1. Where do we need to improve transparency in the markets today?2. What is the solution to achieve that?3. How will futures and options markets look in the future, in terms of transparency? JLN interviewed 15 different markets professionals at the conference, about where their industry needs to improve, solutions and the future for transparency in the markets. All told we…

The World Is Flat: ISE’s Boris Ilyevsky Talks PIM And New Flat Auction Pricing Interview,Options

In October, seven options market making firms sent a letter to the SEC outlining their concerns about “the growing trend of exchanges imposing oversized transaction fees on market makers” competing in auction crosses. The firms said they were disadvantaged by the current structure in which internalization is encouraged by the use of a “breakup fee” that keeps market makers from competing with “initiators” of the auction. The International Securities Exchange (ISE) responded to the debate over price improvement mechanism (“PIM”) auctions by announcing a flat pricing structure for PIM auctions on ISE Gemini, where both PIM initiators and responders will…

Focused: What The Industry Knows About Transparency (Part 2) Regulation,Tech / HFT,Video

Back in November, the industry gathered for the annual FIA Expo event in Chicago. There, John Lothian News used an exhibitor booth (Thanks Cinnober!) as its studio to ask industry participants key questions about transparency issues in today’s markets. Where do we need to improve transparency in the markets today?What is the solution to achieve that?How will futures and options markets look in the future, in terms of transparency? JLN interviewed 15 different markets professionals at the conference, about where their industry needs to improve, solutions and the future for transparency in the markets. All told we heard from participants…

Focused: What The Industry Knows About Transparency (Part 1) Regulation,Tech / HFT,Video

Back in November, the industry gathered for the annual FIA Expo event in Chicago. There, John Lothian News used an exhibitor booth (Thanks Cinnober!) as its studio to ask industry participants three questions about transparency issues in today’s markets. Where do we need to improve transparency in the markets today? What is the solution to achieve that? How will futures and options markets look in the future, in terms of transparency? JLN interviewed 15 different markets professionals at the conference, about where their industry needs to improve, solutions and the future for transparency in the markets. All told, we heard…

Focused: What The Industry Knows About Transparency Interview,Regulation,Tech / HFT,Video

Back in November, the industry gathered for the annual FIA Expo event in Chicago. There, John Lothian News used an exhibitor booth (Thanks Cinnober!) as its studio to ask industry participants key questions about transparency issues in today’s markets. Where do we need to improve transparency in the markets today? What is the solution to achieve that? How will futures and options markets look in the future, in terms of transparency? JLN interviewed 15 different markets professionals at the conference, about where their industry needs to improve, solutions and the future for transparency in the markets. All told, we heard…

Kansas City Swinging Hot BATS Options

BATS Global Markets reported its 2014 results last week. Quite a year for an exchange that weathered the media and regulator storm in the wake of Michael Lewis’ “Flash Boys.” Despite all the negativity surrounding the HFT space, BATS posted its best market share in US equities and options and held the top spot in equity market share in Europe. BATS’s equity options total market share was 6.3% in December 2014, up from just 2.8% a year earlier, according to the OCC, and comes during a time when the options industry continues to show slow but steady growth. Last year,…

The Road Ahead: Donohue Leads OCC In A New And Pricier Era Commentary,Options

After 40 years as a relatively quiet clearing utility, the OCC has recently been shaken up. In just the past couple of years, the organization has seen dramatic changes in its leadership, staff, board and structure as it responds to new, more demanding regulatory requirements and a changing environment. Perhaps the biggest change has been the OCC’s new designation in the wake of massive regulatory changes since the financial crisis. In July 2012 the Financial Stability Oversight Council, established under the Dodd-Frank Wall Street Reform and Consumer Protection Act, designated the OCC as a “systemically important financial market utility” (SIFMU)….

Small Caps Coming Up Big: Russell’s Pat Fay on the One-Year Anniversary of the CBOE Russell 2000 Volatility Index Options,Video

Investors have been flocking to equities lately, but the interest in small caps is apparently outpacing that in large caps, measured by closing prices for the RVX compared to large cap implied volatility as measured by the VIX prices. The CBOE Russell 2000 Volatility Index (RVX) futures contract was launched on November 18, 2013. One year later, JLN caught up with Patrick Fay, director of listed derivatives for Russell Investments, at FIA Expo Chicago, to talk about the RVX index and small cap volatility. Small cap volatility has always tended to be higher than large cap volatility, but this gap…