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JLN Options: CBOE In Settlement Talks With SEC Over Investigation Newsletter,Options

Sanjeev Joshipura of the Commodity Markets Council on Dodd-Frank in 2013MarketsWiki.tv Sanjeev Joshipura, president of Commodity Markets Council, talks about how Dodd-Frank rules will impact his membership base. Joshipura talks with JLN editor-in-chief Jim Kharouf about the future of the controversial position limit rule, which was vacated by a US District Court on September 28, 2012. A new position limit rule is expected from the Commodity Futures Trading Commission (CFTC), which will include a cost-benefit analysis. CMC is also focused on the CFTC’s reauthorization this year and the continuation of EMIR regulations. Joshipura also talks about US and EU regulatory…

JLN Options: CME’s Daily Trading Volume for Treasury Options Hit Record Friday Newsletter,Options

Lead Stories CME’s Daily Trading Volume for Treasury Options Hit Record FridayDow Jones Business News (via NASDAQ)Total daily volume edged up 0.1% to 1,174,227, compared with 1,172,710 reached on June 8, 2007. This included a record 639,306 Treasury options executed on CME Globex.http://jlne.ws/Wsv1tX Are SPX Options Too Cheap?MinyanvilleOne of the first themes of options trading that I learned on the trading desk was that the best predictor of future volatility is recent realized volatility, with all else being equal. Best predictor does not mean good predictor. It simply means that, of all the alternatives, recent realized volatility is the best…

JLN Options: First US ETF celebrates 20th birthday Newsletter,Options

LEAD STORIES First US ETF celebrates 20th birthdayBy Chris FloodThe first US listed exchange traded fund marked its 20th birthday on Tuesday having developed into into a $125bn giant and becoming one of the world’s most widely traded securities over the past two decades.The SPDR S&P 500 ETF, known as SPY, which is managed by State Street Global Advisors, has spearheaded the development of the ETF industry worldwide since its launch in 1993.…SPY also generates a huge volume of turnover in derivatives markets with 585.7m contracts in 2012, around 16 per cent of US equity options volume last year.http://jlne.ws/VnzCgI VIX…

JLN Options: CBOE Pays Fat Dividend, Stock Tagging New Highs Newsletter,Options

LEAD STORIES CBOE Pays Fat Dividend, Stock Tagging New HighsZacks.com (via Forbes)CBOE Holdings (CBOE) has been gaining traction with an annual dividend yield of 3.9% and a long-term growth rate of 12.5%, making this options and futures leader a promising pick for investors seeking both growth and income.http://jlne.ws/123WfMx Volatility returns to spook Wall StreetAnora Mahmudova, Financial TimesUS equity markets began the week on slightly sour note, as stronger-than-expected durable goods data did little to lift the markets.Businesses invested far more in December, with orders for durable goods jumping 4.4 per cent. A surprise jump at the end of the year…

JLN Options: House Panel Proposes Tax Plan for Derivatives Newsletter,Options

Yesterday’s most actively traded options – from the OIC LEAD STORIES House Panel Proposes Tax Plan for Derivatives4-tradersThe U.S. House Ways and Means Committee on Thursday proposed taxing derivatives and other similar financial products at ordinary rates and valued under mark-to-market rules.http://jlne.ws/W7S8e5 European stock ‘fear gauge’ hits near six-year lowReutersThe Euro STOXX 50 Volatility Index , or VSTOXX, Europe’s widely-used measure of investor risk aversion, hit a near six-year low on Friday in a strong signal of growing appetite for equities.http://jlne.ws/W7VnlV Semi-rational exuberanceThe EconomistA VIRUS is spreading through financial markets—and it isn’t the flu. Investors around the world have been…

John Lothian Newsletter: EU states to get go-ahead for tax on trading; Thomson Reuters At Center Of High-Speed Trading Squabble; SEC Reins In Ratings Firm John Lothian Newsletter,Newsletter

EU states get an all-clear to begin creating new financial transaction-based taxes; howls and applause are expected from the usual corners of the room. Thomson Reuters finds a hard place next to the rock in the high-frequency trading realm as an escalating dispute cuts off the company from a significant source of quote data. The SEC gives a sharp smack to ratings firm Egan-Jones, who goes to the penalty box for inventing work history.

HFT Rules: Rules for the Algo Highway Regulation,Tech / HFT,Video

HFT Rules: Rules for the Algo Highway

Customer confidence has been hit by a number of different events over the past several years and high frequency trading (HFT) problems have been among them. Ben Van Vliet, assistant professor of finance, Stuart School of Business, Illinois Institute of Technology has been looking the creation of a standard set of rules high frequency trading participants can use to ensure safer markets. Van Vliet has helped initiate the AT 9000 system, which would set standards for HFT design, backtesting, implementation and portfolio and risk management. Van Vliet says its important that the industry support such a project, rather than wait…

JLN Options: Investors Seek More Transparency on Corporate Hedging, Derivatives Exposures Newsletter,Options

LEAD STORIES Investors Seek More Transparency on Corporate Hedging, Derivatives ExposuresEmily Chasan, The Wall Street JournalCorporate disclosures on hedge accounting and derivatives trading are so opaque that investors are often unable to see the true risks companies face from engaging in those activities, according to a new report from the CFA Institute, which is recommending companies improve disclosures in those areas.http://jlne.ws/W91pQf S&P 500 Advances to Five-Year High on Economic ReportsBy Rita Nazareth & Sarah Pringle, BloombergU.S. stocks rose, sending the Standard & Poor’s 500 Index to a five-year high, amid better- than-forecast initial jobless claims and housing data.http://jlne.ws/XGRl34 GFI announces…

John Lothian Newsletter: NYSE Euronext, Russell Investments in Index Tie-Up; Direct Edge to seek Brazil bourse license in “weeks”; SEC’s Hired Gun on High-Frequency Trading Gets Permanent Role John Lothian Newsletter,Newsletter

Russell and NYSE Euronext team up to distribute index data, and they may extend that relationship in the future. Direct Edge says they’re intending to open a new exchange in Brazil. The SEC gives their HFT expert a real office chair in ongoing efforts to understand and regulate high-frequency trading’s marketplace effects.