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JLN Options: Growth in Options Trading Helps Brokers but Not Small Investors Newsletter,Options

Lead Stories Growth in Options Trading Helps Brokers but Not Small InvestorsNathaniel Popper, The New York TimesSome of the brokerage firms that helped pique American’s interest in stocks are now luring them into something much riskier: stock options.http://jlne.ws/15g9atC Kiss the US Listed Options Market GoodbyeAndy Nybo, TABB GroupA proposal to reform the taxation of financial instruments would dramatically change the tax treatment for options strategies, potentially decimating trading volumes by as much as 40%. And it is not the so-called ‘fat cats’ of Wall Street that will be impacted by the proposal; instead, the biggest impact will be felt by…

JLN Options: Potential Tax Change Could ‘Decimate’ Options Trading Volume Newsletter,Options

Lead Stories Potential Tax Change Could ‘Decimate’ Options Trading Volume  Kaitlyn Kiernan, The Wall Street JournalTabb Group’s Andy Nybo weighed in Thursday and on a proposed tax change that could “decimate trading volumes” in the options industry.http://jlne.ws/Z5D5DR U.S. options clearer moves to end trade type dominated by NasdaqAnn Saphir, ReutersThe clearinghouse for all stock options said Thursday it will adopt a policy aimed at abolishing a dividend-linked trading strategy that critics say could destabilize markets if left unchecked.http://jlne.ws/Z5E2MB New CBOE CEO Aims to Take Volatility Franchise Global  Jacob Bunge, The Wall Street JournalThe new chief executive of the Chicago Board Options Exchange…

JLN Options: Traders Sue Options Exchanges Over Fees Newsletter,Options

Commentary & Insight CBOE Celebrates 40 Years Last night the CBOE held a star-studded panel discussion at the exchange and later a dinner at a Chicago hotel in honor of its 40 anniversary, the 30th anniversary of the index options and the 20th anniversary of the introduction of the VIX. Today, they will have their annual meeting and Bill Brodsky cede the CEO role to Ed Tilly and Mr. Brodsky will assume the role of executive chairman [transcript of the meeting is listed below under “Exchanges” -JB]. The panel discussion featured the President of Barron’s as the moderator, as well…

JLN Options: Last-Second Options Bet on Saks Raises Questions Newsletter,Options

Lead Stories Last-Second Options Bet on Saks Raises Questions Kaitlyn Kiernan, The Wall Street JournalOptions traders are raising questions about the timing of a set of last-minute trades in Saks Inc. Tuesday that stand to bring in huge profits following news the company may be exploring a sale. http://jlne.ws/184Wha7 IntercontinentalExchange CEO says lack of cross-border derivatives coordination ‘damaging’Megan Hickey, Medill News Service (via MarketWatch)The failure to harmonize the cross-border application of derivative rules “will be damaging,” according to IntercontinentalExchange Chairman and CEO Jeffrey Sprecher, who testified Tuesday on Capitol Hill at a hearing on the future of the Commodity Futures Trading…

JLN Options: Big Hedge Funds Suddenly Bullish Newsletter,Options

Lead Stories Big Hedge Funds Suddenly Bullish  Steven M. Sears, Barron’sA tectonic shift in the options market suggests that big money is now chasing the rally higher. Now bears get a discount.http://jlne.ws/12K47kL Equity options rebound in AprilFOWUS market growth has driven the most active April in US equity options history, indicating a possible upturn after a lack-lustre first quarter’s trading writes Jonathan Watkins.http://jlne.ws/14O5SNZ The VIX: It Could Get Ugly Soon  Adam Warner, Schaeffer’s Investment ResearchNow, there’s no law that says VIX has to move anywhere. Way back before anyone paid attention to VIX — like in the 90s — volatility didn’t fluctuate…

JLN Options: NYSE Voids Penny Trades in Anadarko From Last Minute of Trading Newsletter,Options

Lead Stories NYSE Voids Penny Trades in Anadarko From Last Minute of TradingWhitney Kisling & Nikolaj Gammeltoft, BloombergThe New York Stock Exchange broke trades in Anadarko Petroleum Corp. (APC) after the shares briefly plunged 99 percent in the final minute of today’s session.http://jlne.ws/12oRWbi Why QE, low interest rates and volatility are an explosive mix for the marketsSimone Foxman, QuartzCritics of quantitative easing (QE)—whereby central banks push down interest rates and buy up safe assets to stimulate flagging economies—have long worried about the possible unintended consequences. The point of QE is to push down the yields on safe assets like government…

JLN Options: Regulators Target Exchanges As They Ready Record Fine Newsletter,Options

Lead Stories Regulators Target Exchanges As They Ready Record Fine  Jenny Strasburg, Jean Eaglesham and Scott Patterson, The Wall Street JournalFinancial regulators are taking a harder line on exchanges amid concerns over their ability to police the markets they operate, as the SEC prepares to hit one with a record penalty.http://jlne.ws/10Dgqv2 The Volatility Trade’s Not Dead Yet  InvestorPlaceWith the CBOE Volatility Index and other volatility measures sagging to relative lows, one might think that the volatility trade is dead.  Not the case, according to our options volume tracking filters which have identified some interesting options activity on the fear gauge, as the…

JLN Options: Nasdaq’s PHLX Options Market Has ‘Issues,’ Halts Some Trading Newsletter,Options

Lead Stories Nasdaq’s PHLX Options Market Has ‘Issues,’ Halts Some TradingJacob Bunge, NASDAQNasdaq OMX Group Inc. ( NDAQ ) on Thursday halted trading in some stock-options contracts on its largest options exchange due to “system issues,” according to notices sent to traders.http://jlne.ws/12ykG3b NYSE Looks to Cull List of Penny NamesPeter Chapman, Traders MagazineIn a move intended to reduce quote traffic and the exchange operator’s administrative burden, NYSE Euronext is proposing to cut significantly the number of options subject to penny trading and to end the so-called “Penny Pilot” program.http://jlne.ws/12ylOUm 5 Theories Behind the VIX Stagnation  Adam Warner, Schaeffer’s Investment ResearchThe market…

JLN Options: Big Sony options action before Loeb stake raises eyebrows Newsletter,Options

Lead Stories Big Sony options action before Loeb stake raises eyebrowsDoris Frankel, Reuters (via Chicago Tribune)A surge in option market bets on Sony Corp just before a large hedge fund investor announced a big stake and called for a major restructuring of the company has raised concerns that some traders may have had advance word of the news.http://jlne.ws/10PDuwh VIX Rises on Tuesday Despite New S&P 500 Record HighWall Street Sector SelectorVIX managed to increase on a day when Small Business Confidence Index beat expectations and the S&P 500 set new record intraday and closing highs.http://jlne.ws/10PC84B VIX Moves With Stocks as…