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Tag Archives: OptionsXpress

HFTers adjust; “Low” VIX in context; Chinese firms rush to FX hedges Newsletter,Options

Lead Stories High-frequency traders adjust to overcapacity and leaner times Nicole Bullock – Financial Times Recalling the years around the financial crisis may still bring a shudder to many on Wall Street, but for high-speed traders 2008-2009 were pay dirt. The high-frequency trading industry was still in an early stage. Recent regulatory change, opening the way for competition, and computing advances had paved the way for its rapid development. As markets took fright through the crisis, there was plenty of price volatility and high volumes of asset dealings — the raw materials for any trader to make money. jlne.ws/2ydkdKX ****SD:…

Smart Money, Smart Women: What Successful Women Say About The Possibilities Blog

Women have come a long way in the financial sphere. As recently as 1989, when Ilyce Glink, the founder and president of Think Glink Media, went with her husband to a bank to apply for a mortgage, the banker they spoke with – a woman – told her there was no need for her to put her own income on the form. “Oh honey, your income doesn’t really matter. We’ll use your husband’s,” the banker said. Glink was then – and is now – a self-employed woman who bought shares of Intel and “a small company called Microsoft” in 1987. …

JLN Options: Options Week in Review March 7, 2013 Newsletter,Options

Bank of America bought 150,000 shares of Constellation Brands, a wine and beer seller, a few days before Constellation announced an acquisition in which the bank was the lead lender, The Wall Street Journal reported.  The bank made a big profit from the trade, which helped push the volume in the beverage maker’s options to more than 13 times the average volume of the previous 30 days. Bank of America said that in addition to the call position, it also bought put options on 133,100 Constellation shares as part of a directionally neutral strategy. However, the bank’s loss from the…

JLN Options: Options Week in Review Feb. 21, 2013 Newsletter,Options

The Securities and Exchange Commission and the FBI began investigating suspicious options trading that occurred just before Berkshire Hathaway announced a $23 billion acquisition of  H.J. Heinz Co.   David Weidner pointed out in The Wall Street Journal that “prescient” trading in the options markets in advance of market-moving announcements has been common for years, but that regulators have been disinclined to respond, saying that these types of trades are difficult to investigate and that insider trading is hard to prove. The SEC’s move to freeze the assets of a Swiss trading account linked to the trades was one of the…

JLN Options: Options Week in Review Jan. 17, 2013 Newsletter,Options

The CBOE plans to revamp its 15-member board to make it more independent, in line with its rivals NYSE Euronext, Nasdaq OMX and ICE, whose board members have no direct ties to trading firms. The restructuring is part of the exchange’s response to an SEC investigation stemming from alleged violations of securities laws by a unit of OptionsXpress, the Wall Street Journal reported. The board changes were not requested by the SEC. The CBOE’s CEO Bill Brodsky, who will step down as CEO and let Edward Tilly take over in May, said the exchange has no plans for a merger…

John Lothian Newsletter: SEC Options Cases Highlight CBOE Regulation; HKEx to offer renminbi futures; Tokyo Trading Glitch Thaws Resistance to Alternative Platforms John Lothian Newsletter,Newsletter

As the SEC takes additional action against broker OptionsXpress, the CBOE finds itself in the middle of a much closer look at how it supervises its members. The Hong Kong Exchange announces plans to issue futures contracts for trading the Chinese yuan. Fault and strategy analysis continues at the Tokyo Stock Exchange over a systematic failure earlier this year. In the top box, John Lothian pens a salute to the S&P 500 Index Futures contract, which turns 30 this year; and OCC and OIC upgrade their support of MarketsWiki to the Partner level.

Patently Different World Commentary,Tech / HFT

John Lothian

Back in 2004 before I first broke the Trading Technologies (TT) MD Trader patent story in this newsletter, I tried to give the story away to a larger news organization with the depth and reputation I thought could handle it. I thought it was too big of a story for a one-man newsletter writer operation. I was unsuccessful in pitching this story to one of Chicago’s newspapers whose lacking coverage of the industry continues today. So I decided to take the story on and sat down with TT’s CEO Harris Brumfield. TT was so happy with the response they were…