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Tag Archives: risk management

An Options Contract That’s Not for the Faint of Heart; Why A Resilient Risk Management and Internal Control Infrastructure Matters; “Election Certainty” Not Showing Up In SPX Options Market Newsletter,Options

Observations & Insight Last Chance to Sign Up For London MarketsWiki Education World of Opportunity Event By John J. Lothian On Friday the registration for the MarketsWiki Education World of Opportunity event in London will close. You can still sign up your interns, newer employees or anyone interested here. The event is FREE and not to be missed. We have a great line-up of speakers, though we have a couple of changes to announce. Paul Christensen and Jeremy Grant had to step aside as conflicts came up. The FT’s Phillip Stafford has agreed to step in for Mr. Grant. We…

Lanre Sarumi, RiskBone – Your Heart vs. Your Talents: Success Mindset for the Financial Industry Feature,MWEd,Mwiki,video

“It turned out that what I was good at became what I was doing.” Lanre Sarumi entered the financial markets for one reason alone – he wanted to be a trader – yet he struggled to find a bank or trading group willing to hire him as one. He eventually took a job as a systems developer at Citadel Investment Group, where he led teams that designed risk solutions for the back and middle office. Though he was great at building risk solutions, his heart was in trading, so every time there was an opportunity to move into a trading…

Jeff Levoff, Partner, DRW – Make a Market: Proprietary Trading in the Modern Era MarketsWiki Education,Video

“This is not a get-rich-quick scheme. It’s hard work to try to find positive expected value. That’s what we do every day.” Conceptually, proprietary trading is easy. One must follow two simple steps – finding positive expected value and managing the risk of positions taken. The devil, as always, is in the details. When Jeff Levoff, partner at DRW, began in the business, positive expected value was an easier proposition. A simple Black-Scholes based software suite would spit out theoretical values, and market makers like Levoff would actively bid below theoretical value, offer above it and – voila! – positive…

Christian Domin, GlenStar Properties – Value Investing: Office Space and Associated Risks MarketsWiki Education,Video

“When you’re first starting out, you want to keep your lease as short-term as possible and mitigate the risk. If there is a regulatory change, a change in your small, three-person partnership, or any other change, you’re going to be stuck.” Most financial professionals know that the day-to-day price risks are but a small component of one’s overall business risk. Even trading firms that make their money on price movement must deal with regulatory uncertainty, technological change and other shifting trends. Christian Domin, whose firm GlenStar Properties purchased the iconic Chicago Board of Trade Building in 2012, says real estate…

Counter (party) intuitive – Fidessa White Paper Blog

by Steven Strange, Compliance Product Manager Pressures from all sides are driving buy-side firms around the world to pay ever-closer attention to counterparty exposure. Asset managers are looking critically at their existing processes for monitoring and controlling counterparty risk and often finding them to be inadequate. Here Steven Strange, Compliance Product Manager at Fidessa, looks at how the counterparty landscape has changed for the buy-side, and what can be done to ease the burden.

DTCC Video: Systemic Risk Barometer Insights with Mike Leibrock Blog,Financials,Regulation,Video

Mike Leibrock, Managing Director and Chief Systemic Risk Officer at DTCC, shares his insights on the most recent Systemic Risk Barometer Survey. *This video first appeared on the DTCC web site January 7, 2016 and is reposted here with permission.

John Fennell, OCC – Clearing – Providing Confidence to Financial Markets Options,Video

“In the past, settlement – the movement of securities and cash – is what you would associate with clearing. That changed as a result of the financial crisis. When you have banks like Bear Stearns and Lehman Brothers defaulting, confidence becomes the bigger issue.” Historically, clearing has not exactly been part of the “glamorous” side of trading. In fact, it has been looked at as a utility, like electricity and plumbing. But that all changed during the financial crisis. Clearing, you see, is not just about moving contracts through the pipes; it is also about the guaranteed performance of those…

Ed Haravon, Spot Trading – Ask Why? Opportunities in Financial Markets Video

“As you’ve all realized in your short time through your internships, for the most part this industry — and when I’m talking about this industry I’m talking about proprietary trading firms, exchanges, some the other service providers that support the business, so the industry at large — we really function more as applied science or applied technology companies, right?” Remember when you could see the action matinee double feature for a buck? Or when a cream soda cost a dime? At some point in time those favorite, stale references were simply the present. Ed Haravon, COO of Spot Trading, says…

Grace Under Pressure: OCC’s Chief Risk Officer Talks About Preparing for Systemic Threats Options,Tech / HFT,Video

As a Systemically Important Financial Market Utility (SIFMU), the OCC must be able to manage capital and operational risk on a day to day basis and during extraordinary times, when disaster strikes. On the 14th anniversary of the terrorist attacks of September 11, 2001, JLN spoke with John Grace, chief risk officer for the OCC, about the challenges OCC faces as a SIFMU and what he and the organization are doing to address those challenges. Ways in which the OCC plans to cut down on systemic risk include: Making sure the organization has adequate financial resources, which includes the clearing…