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Tag Archives: VIX

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…

The Big Hedge-Fund Strategy That Isn’t Working Newsletter,Options

Observations & Insight The Spread – Thin Crust Pizza – 8/24 JohnLothianNews.com Most of the time, we go for a smattering of everything on “The Spread.” But this week there was a story that got a lot of clicks and stirred up the pot, so we thought we’d just address the issues that arose from that. Watch the video and see the stories referenced here » ++++ Monday Mutterings Spencer Doar – JLN There was a breakthrough in trade negotiations with Mexico today (link to Fox Business). The two sides agreed to a new pact called the United States Mexico…

VIX Changes; OCC Plans; Eurodollar Whale JLN Options Newsletter,Newsletter,Options

Observations & Insight VIX (and Other Friday Stuff) Spencer Doar – JLN The Cboe quietly dropped a proposal to amend its interpretation of rule 6.2, which you might know better as “stuff pertaining to VIX settlement.” The proposed rule change expands/clarifies the exchange’s interpretation of “strategy orders” and “non-strategy orders” to better determine whether or not someone is gaming the settlement calculation. Fed Chair Powell’s comments from Jackson Hole are in. He stuck by his guns, saying that steady rate hikes are the best way to keep the recovery going. (I’m mildly surprised there has not been a presidential tweet…

Traders Bet U.S. Stocks Are About to Make a Big Move, Somewhere Newsletter,Options

Observations & Insight The Spread – Caddyshack Market – 8/17 JohnLothianNews.com Another week, more Turkey worries. We don’t talk about that at all in this week’s options news recap, instead taking a peek at security, average bid/ask spreads and regulation. Watch the video and see the stories referenced here » ++++ Trump Is Complaining to Donors in the Hamptons About Powell’s Rate Hikes Jennifer Jacobs and Saleha Mohsin – Bloomberg President laments interest rate increases at GOP fundraiser; Federal Reserve has raised rates five times in Trump’s term President Donald Trump said he expected Jerome Powell to be a cheap-money…

Kessler Topaz, Quinn Emanuel To Lead VIX MDL; Goodbye MANA Partners JLN Options Newsletter,Newsletter,Options

Lead Stories Kessler Topaz, Quinn Emanuel To Lead Volatility Index MDL John Petrick – Law360 (SUBSCRIPTION) An Illinois federal judge on Thursday appointed Kimberly A. Justice of Kessler Topaz Meltzer & Check LLP and Jonathan C. Bunge of Quinn Emanuel Urquhart & Sullivan LLP as lead co-counsel in multidistrict litigation over alleged Chicago Board Options Exchange’s volatility index manipulation. /goo.gl/yHqLZu Good-bye MANA Partners Volatility Futures and Options MANA Partners, a much-hyped trading firm founded by Manoj Narang (ex-Tradeworx) is in a total tailspin after launching trading in January 2017. bit.ly/2MUQuvq Trump asks SEC to mull half-year corporate filings vs. quarterly…

OCC’s move to ‘Cover 2’ won’t cost members more, CRO says Newsletter,Options

Observations & Insight The Spread – 8/10 – Pump up the Vol(ume) JohnLothianNews.com In this week’s recap of happenings in the options world we delve into some confusing terms, Spinal Tap and Recep Erdogan’s plight. Watch the video and see the stories referenced here » ++++ Turkey’s Collapse Sinks Emerging Markets on ‘Manic Monday’ Rita Nazareth and Ben Bartenstein – Bloomberg (SUBSCRIPTION) Turkish measures could be too little, too late, analysts say; Argentine century bond yield surges to 10% as peso tumbles Turkey’s market carnage rippled across emerging markets, sending both stocks and currencies toward their lowest levels in a…

US Options Volume on Pace for Record Year; Canadian Pension Fund Leverage Newsletter,Options

Lead Stories US Options Volume on Pace for Record Year Despite Drop Off, Lower Volatility in Q2 Russell Rhoads – TABB Forum (Free Subscription w/ Registration) US options volume remains on track for a record year, despite a volume drop off from the first quarter to Q2 2018. Volatility was lower compared to Q1, but still was elevated relative to the past couple of years. Average bid/ask spreads narrowed from month to month, with June posting the narrowest spreads in 2018. TABB Group’s exclusive US Options Market Review examines market trends in US-listed options markets, including detailed insight into volume…

Trader’s Pile Into Bullish Bets; Tesla options action; Summer vol Newsletter,Options

Observations & Insight Wednesday’s Miscellany JLN Staff MLex has a (paywalled) story titled CFTC’s Giancarlo cites threat from China futures markets in bid for more money. Obviously it is a futures story, but I see it as indicative of the overall “threat” posed by the ongoing development of Chinese derivatives markets. Check out this Bloomberg/Saxo Bank chart of yuan denominated oil futures trading and you’ll see why Giancarlo said what he did. (Besides, the usual rhetoric about needing money to protect investors hasn’t worked for the CFTC’s budget so maybe some fear-mongering will.) Also see this Reuters story from May…

Traders to get VIX advisory notices; Exchange stats; More liquidity concerns Newsletter,Options

Observations & Insight Joe O’Neill, New York Commodity Exchange(s) Executive, Passes Away By John Lothian Longtime New York commodity exchange executive Joe O’Neill passed away on August 4, 2018 at the age of 74. This plain statement tells little of a life lived in the most colorful of times in New York commodity exchange history or a career that included launching the first financial futures (before CME/IMM by 2 years), the creation of the Dollar Index Contract (with the help of Paul Tudor Jones) and being the consultant for the futures trading aspects of the script of the hit movie…