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Tag Archives: options on futures

Shortwave trading; Robinhood’s $2b a day options biz; Mammoth bond wager Newsletter,Options

Observations & Insight A little-known business at Robinhood has exploded, and now it’s launching a service to go after the most serious traders Frank Chaparro – Business Insider Prime (SUBSCRIPTION) Robinhood’s options-trading business is exploding, according to Chris O’Neil, a product manager at the California broker. Now the firm, which says it has seen $2 billion in options-trading volumes since launch, is upping the ante with the rollout of multileg options. The move shows the company is seriously going after the business of more experienced traders, says Devin Ryan, an analyst at JMP Securities /goo.gl/C2CX83 ****SD: First of all, not…

VIX Isn’t Broke; CAT Privacy Bill; WMDs for next crash Newsletter,Options

Observations & Insight The State of Options Market Making in One Image; Happy 45th Anniversary of the Black Scholes Formula At the Options Industry Conference in Amelia Island, Fla., Trade Alert President Henry Schwartz gave his annual “State of the Industry” presentation. The presentation is always chock full of great graphs and information – the word cloud image above is always a favorite. In the picture, liquidity providers are sized according to their industry presence – the bigger the firm’s book, the bigger its name appears. Schwartz said Susquehanna is not sized to the same scale as the rest because…

China’s VIX Goes Dark; Hidden Corners of Credit Selloff; LJM fund lawsuit Newsletter,Options

Lead Stories China’s VIX Goes Dark as Government Clamps Down on Options Bloomberg News State-run index compiler stopped updating the gauge Thursday; Move is designed to curb options trading, people say China stopped updating its homegrown version of the VIX Index, taking another step to discourage speculation in equity-linked options after authorities tightened trading restrictions last week. State-run China Securities Index Co. didn’t publish a value for the SSE 50 ETF Volatility Index on its website Thursday. An employee who answered CSI’s inquiry line said the company stopped updating the measure to work on an upgrade. The move was designed…

Hawaii, Harvard gambled on calm; Wall Street not quitting vol; More VIX rigging; HFT source code developments Newsletter,Options

Lead Stories Harvard, Hawaii Gambled on Market Calm—Then Everything Changed Gregory Zuckerman, Gunjan Banerji and Heather Gillers – WSJ A decade of low bond yields pushed some of the most stability-minded investors to dabble in risky investments that depended on markets being orderly. Now, those bets are looking problematic. In the past, pension funds, endowments and family offices pursued relatively safe investments. After interest rates collapsed on the heels of the financial crisis, they ran into challenges paying pensioners and filling university budgets, and added riskier bets on hedge funds and venture capital in the hopes of winning better returns….

Strong October Options Volumes; American Options Calibration Issues; Betting Against Bitcoin Newsletter,Options

Observations & Insight ESMA Consults On Calculation Of Derivative Positions Mondovisione The European Securities and Markets Authority (ESMA) has today published for public consultation future guidelines on the calculation of derivative positions by trade repositories (TRs) authorised in the European Union under the European Market Infrastructure Regulation (EMIR). jlne.ws/2hIw0Mb ****SD: In the link to future guidelines that is provided, there is this – “In contrast to the approach required under MiFID II/R to calculate position limits, position calculations with regards to options are not based on delta-adjusted notional values. Rather, the relevant gross notional values that are reported under EMIR…

Oil to $80?; VIX pop; China opens access Newsletter,Options

Observations & Insight The Industry Discusses Cryptocurrencies and DLT JohnLothianNews.com At the 33rd Annual FIA Futures and Options Expo in mid-October, John Lothian News spoke with a variety of industry participants about upcoming milestones and trends in financial markets. This fifth video in the series is the first to cover the crazily popular cryptocurrency space and its technological underpinnings. In part one, Ed Tilly, chairman and CEO of Cboe, Drew Shields, Trading Technologies’ CTO, Thomas Flake, the co-founder and chief marketing officer of bcause, Kevin Darby, managing partner at Blue Trading Systems and Chris Hehmeyer, CEO of Hehmeyer Trading +…

Bill Brodsky’s Pioneering Career: An Industry Innovator Looks Back Feature,Video,video

Bill Brodsky has been a fixture of the derivatives markets for the better part of 50 years — at the (then) American Stock Exchange, CME and CBOE. He recently stepped down from the CBOE after two decades as the CEO and then chairman of the exchange. At each stop, Brodsky ushered in periods of change. He helped put AMEX on the options map in the ’70s; oversaw the launch of the electronic trading system Globex and of options on futures as CEO of the CME; and as CEO of the CBOE, took the exchange public and helped the birth of…

Traders of ETF Options Deviate From Forecasters on OPEC Deal; OCC Comments on Essential Aspects of CCP Resolution Planning; Bumpy Ride Ahead for Investors as Presidential Election Looms Newsletter,Options

Observations & Insight Welcome to FIA EXPO Week By John J. Lothian Welcome to FIA EXPO week in Chicago. The global derivatives/financial/technology industry converges on the Hilton on South Michigan Avenue tomorrow as the conference officially begins then. It will be a week of news, meeting colleagues and old friends and a little bit of socializing. Just be careful out there. The Windy City is living up to its name as tremendous winds, not created by blow-hard politicians, has descended on the city. John Lothian New will be out in force at the conference, and we will again be shooting…

A Tangled Web: Exploring The Explosive U.S. Growth Of Options On Futures Blog,Commentary,Exchanges, OTC & Clearing,Feature,Fintech,Investing & Trading,Mwiki,Options

Options on futures volumes have been on the rise since the financial crisis. To explore the reasons for the trend, John Lothian News spoke with a variety of industry participants over the course of the summer.  The cause of the increasing volumes is an amalgam of larger trends in the financial industry, and the effects are a bright spot in an overall dark landscape.   Click here to view the article.