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Tag Archives: short vol

OCC risk management plans; One way vol bets a “fool’s errand”; Melt-up concerns JLN Options Newsletter,Newsletter,Options

Lead Stories OCC Enhances Resilience with Regulatory Approval of Recovery and Wind Down and Associated Recovery Tools John Davidson, President and COO, OCC On August 23, OCC, the world’s largest equity derivatives clearing organization, received approval from the U.S. Securities and Exchange Commission of the company’s proposed recovery tools and proposed recovery and orderly wind-down (RWD) plan. These are critical risk management tools designed to enable OCC to enhance its resiliency as a Systemically Important Financial Market Utility (SIFMU) and successfully manage extreme market disruptions in future financial crises /goo.gl/CYjzcL One-Way Volatility Bets Seen as ‘Fool’s Errand’ by 6,000% Winner…

Options Markets Stability Act passed; Short-Volatility Bets Boom Newsletter,Options

Lead Stories Financial Services Committee Unanimously Passes Hultgren’s Options Markets Stability Act Congressman Randy Hultgren Today, the House Committee on Financial Services unanimously passed H.R. 5749, the Options Markets Stability Act. The legislation authored by U.S. Rep. Randy Hultgren (IL-14) would facilitate liquidity in options markets by calling on bank regulators to provide targeted capital relief. bit.ly/2JOG7Ym ****SD: Woo hoo! Securities Lending Times on the issue here. Short-Volatility Bets Boom as Hedge Funds Take Baton From Banks Yakob Peterseil – Bloomberg Fast money bets on muted price swings in debt, mutual funds; Option sales profitable as private-bank clients go long…

Takeaways From Recent Options Volume Surge; Update on Short Vol Poster Child; VIX seen as incomplete measure Newsletter,Options

Observations & Insight An Array of Recommended Tangents for International Women’s Day Spencer Doar – JLN The “Fearless Girl” statue on Wall Street turned one year old today. Let’s dedicate today’s newsletter to the embodiment of her ideals, shall we? To kick it off, here’s the WaPo with The Fearless Girl statue turns one today. Here’s what she’s inspired. The “failing” NY Times (hah – NYT brought in $1 billion of subscription revenue in 2017) has an all-encompassing outlook – International Women’s Day 2018: Pride, Protests and Pressure. Women in Spain are on strike (link to BBC story). This human…

Volatility fallout in Hawaii; No fear, no greed?; LJM lawsuit Newsletter,Options

Observations & Insight Hawaii Pension Parts Ways With CIO Amy Whyte – Institutional Investor Chief investment officer Vijoy Chattergy is no longer employed with Hawaii’s $16 billion state pension fund, where he had served as CIO since 2012, Institutional Investor has learned. An automatic response from Chattergy’s former email account states that he is no longer with the Employees’ Retirement System of the State of Hawaii. The retirement system’s executive director Thomas Williams did not respond to multiple requests for comment by press time. bit.ly/2FkpIcG ****SD: Not the only head to roll after the volatility spike. This Hawaii CIO move…

The Spread – Week of 2/12 to 2/16 Commentary,Video,video

Manipulating, gaming, rigging – that’s the nature of VIX talk this week. But before we get to those allegations in this week’s options recap, we cover a few other stories that didn’t get as much press. The following are stories referenced in this week’s episode of The Spread: Gulf Times – China to curb option trades after one bet soared 2,250% Reuters – Colombia aims to kick-start oil hedging program – finance minister WSJ – Harvard, Hawaii Gambled on Market Calm—Then Everything Changed JLN – What’s the Deal With the VIX Manipulation Letter? Inaccuracy and Misunderstanding CNBC – Ex-CFTC head…

The Low Vol Puzzle; Post Bank say BOJ should sell puts; Buying dips Newsletter,Options

Observations & Insight FANG+ Puts the UMPH Back into the Markets and Exchange Competition John Lothian – JLN Hallelujah! The magical power of innovation from exchange competition in Chicago is alive and well after a noticeable absence. The NYSE FANG+ index at ICE Futures US is the most innovative and timely new contract I have seen since the Cboe introduced the VIX. Besides the FANG+ contract, we have the expectation of the CME Group and Cboe slugging it out later this year with competing bitcoin futures offerings. Earlier this year we had the CME Group reclaim the Russell index complex…