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Tag Archives: position limits

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…

Currency vol expectations regarding Jackson Hole; Debt-ceiling concerns; Credit Suisse hires Ebert from BAML Newsletter,Options

Observations & Insight Risk of sharp currency moves drives investors into hedged ETFs Helen Reid, Saikat Chatterjee and Trevor Hunnicutt – Reuters Investors have been piling into currency-hedged equity tracker funds, seeking protection against big moves in foreign exchange rates. Typically foreign investors buy un-hedged equities since share prices are usually negatively correlated to currencies. In fact, they offer a partial hedge against sharp moves in foreign exchange. /goo.gl/8JWyxh ****SD: How do ETF providers do this? Generally with forwards and options. The “o” word is only mentioned once in the article, but currency derivatives are really the heart of the…

Investors are bracing for a massive stock-market selloff; No single factor behind sterling flash crash, BIS says; VIX Watch – Markets Not Prepared For US-China Trade War Newsletter,Options

Lead Stories Investors are bracing for a massive stock-market selloff Joseph Adinolfi – MarketWatch If options traders are correct, stocks are in for a wild ride in February. Demand for one-month call options tied to the CBOE Volatility Index, a popular gauge of stock-market volatility, has spiked in the past week, a sign that some are bracing for a sharp downturn following the inauguration of President-elect Donald Trump. jlne.ws/2jglzNX ****SD: Happy Friday the 13th everybody! No single factor behind sterling flash crash, BIS says BBC October’s flash crash in sterling was caused by several factors – including the time of…

CFTC Reproposes Position Limits, Adopts Aggregation Regulations; Some Thoughts by OCC on Risk Management; VIX Falls 14% But Futures Signal Market Turbulence in 2017 Newsletter,Options

Observations & Insight Challenging the Status Quo: Cinnober Aims To Break Into The Back Office Clearing Space Jim Kharouf – JLN There was a time when many thought there wasn’t really much of a market for full clearinghouse solutions with real time clearing and risk management. But in 2007 and 2008, Cinnober successfully pushed into the space and carved out a nice niche for itself, especially as the global financial crisis illustrated the intense need for such solutions. Now, the company is pushing into the established space of back office clearing for clearing member banks and brokers. That space is…

John Lothian Newsletter: 7 Years, 156 Cases and Few Convictions; Long-Delayed Commodity Trading Limits Move Toward Completion; CME’s Duffy slams transaction tax plan John Lothian Newsletter,Newsletter

First Read MarketsWiki Education World of Opportunity Lineup ExpandedBy JLN Staff MarketsWiki Education’s World of Opportunity keeps getting better. We are pleased to announce additional speakers for Chicago and New York. We try to assemble a wide variety of speakers from different disciplines and risks. Our most recent additions to the speaker lineup really emphasize that, as we have software, clearing, human resources and artificial intelligence represented. Rob D’Arco of software company Rival Systems will be joining the Chicago lineup, as will Tracy Raben, OCC‘s SVP and Chief Human Resources Officer. Also, we are pleased to announce Neurensic CEO David…

John Lothian Newsletter: Deutsche Börse lines up swoop for LSE; High-speed firms plan second 1,000-foot tower in Kent; A radical world for FCMs Blog

First Read So I Found You Again On Facebook: LSE and Deutsche Börse Dating Again Jim Kharouf and Doug Ashburn, JLN Well, here we go again. The on again, off again affair between the London Stock Exchange and Deutsche Börse is, well on again. The two exchanges are looking to create “an exchange of equals” which would pair two powerful securities, derivatives, clearing, products and services companies in the global exchange space. LSE made a run at Deutsche Börse, just prior to the DB’s IPO in February 2001 but the deal fell through when shareholders in London objected. The second…

John Lothian Newsletter: Wall Street has a problem with women. Here’s why you should worry; Regulators focus on opaque Treasury trading; CFTC to finish position limits rule in 2016, Massad says John Lothian Newsletter,Newsletter

First Read Katie Burgoon, Trading Technologies – Gone But Not Forgotten: How The Floor Trader Mentality Can Prepare Everyone For Success JohnLothianNews.com “You would never have met a floor trader who did not live and breathe the markets every day. They literally could not wait for the alarm clock to go off every morning.” Though the open outcry system of order execution has been relegated (mostly) to the history books, the trading floor mentality lives on in the hearts and minds of the thousands of former floor participants. And any one of them would say that the things that defined…

John Lothian Newsletter: C.F.T.C. Accuses Chicago Trader of ‘Spoofing’; High-Frequency Firms Align With Regulators on Bond Transparency; Why Morgan Stanley Can’t Trade Its Way Out of Trouble John Lothian Newsletter,Newsletter

First Read Balancing Act Doug Ashburn – JLN Back in 2009, in the aftermath of the financial crisis, the G-20’s finance ministers met in Pittsburgh to agree on a set of principles to guide new regulations on clearing, execution and capital standards. These principles eventually led to Dodd-Frank, EMIR, Basel III and the rest of the regulations still being implemented and fought over. While a consensus was reached in Pittsburgh, trying to balance global interests with local regulations, and trying to balance safety and liquidity, has proven to be much more difficult to achieve than initially hoped. Today and tomorrow,…

John Lothian Newsletter: How Congress May Have Saved Goldman Sachs From Itself; Cargill to wind down $7bn hedge fund arm; Forex Scandal Drives Shift to Algo Trading John Lothian Newsletter,Newsletter

First Read MFA Updates Equity Market Structure Recommendations, Urges Regulators to Conduct Regular Data-Driven Volatility Control Reviews Press Release Managed Funds Association (MFA) today updated its equity market structure recommendations with the Securities and Exchange Commission (SEC) and other regulators. MFA’s recommendations would help improve critical market infrastructure, reduce operational risk, improve the overall quality of the U.S. equity markets and strengthen investor confidence through greater disclosure and transparency. jlne.ws/1iFGq9I **JK: MFA rarely turns to the media for anything, but when it does, we notice. ++++ Managed Funds Association Announces 2015-2016 Board of Directors Press Release Managed Funds Association (MFA)…