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Tag Archives: VIX

JLN Options: CME Group data flap shuts down regulator’s research program Newsletter,Options

Lead Stories CME Group data flap shuts down regulator’s research programSarah N. Lynch, ReutersThe world’s largest futures exchange has accused the top U.S. derivatives regulator of illegally sharing sensitive market data with outside researchers who then used the information to publish academic papers about high-frequency trading.http://jlne.ws/ZrJP0l Fake tweet erasing $136 billion shows markets still need humansLu Wang, Whitney Kisling & Eric Lam, BloombergA false report of explosions at the White House that wiped out $136 billion from the Standard & Poor’s 500 Index in about two minutes highlighted the risks of the computerized trading that dominates the $18 trillion market.http://jlne.ws/ZrK7Ew…

JLN Options: CBOE May Retire From Police Beat Newsletter,Options

Lead Stories CBOE May Retire From Police Beat  Jacob Bunge, The Wall Street JournalThe parent of the Chicago Board Options Exchange is considering whether to separate out its regulatory division in the wake of a continuing federal probe into potential conflicts of interest, people close to the discussions said.http://jlne.ws/11i2yIx What a ‘Global’ Market Does When AP’s Twitter Account is HackedBrendan Conway, Barron’sThe AP’s hacked Twitter account erroneously reports an explosion at the White House. The Dow drops more than 100 points instantly. Then it swiftly recovers after people realize nothing bad has happened:http://jlne.ws/15EHgec CME Group Mistakenly Revealed Swap Trades to Market…

JLN Options: Volatility’s Biggest Week of 2013 Was Not Very Big Newsletter,Options

Lead Stories Volatility’s Biggest Week of 2013 Was Not Very BigBrendan Conway, Barron’sThe “fear gauge” climbed 24% last week, the most in nearly four months. But these days it takes more than a commodity selloff and weak data in China to get investors genuinely worried.http://jlne.ws/109CywD VIX Has Biggest Weekly Increase of 2013 as Stocks DropNikolaj Gammeltoft and Cecile Vannucci, BloombergBusinessweekU.S. equity volatility rose the most in almost four months last week after unexpectedly slow growth in China and a selloff in commodities triggered the biggest stock-market drop since November.http://jlne.ws/109Auoh Bloomberg lawsuit will not stem swap futuresThe TradeBloomberg’s legal action against…

JLN Options: Options volume on expiration light due to Boston lockdown Newsletter,Options

Lead Stories Options volume on expiration light due to Boston lockdownAngela Moon and Doris Frankel, ReutersOptions trading volume on Friday was unusually light as much of Boston, a major U.S. financial center, was under lockdown as police hunted for a suspect in Monday’s Boston Marathon bombings.http://jlne.ws/12t3yfE**Obviously, the options volume was not the tragedy here. A very sad time for Boston and for all of us. — SR Credit Suisse Embraces the Dark Side of TradingNathaniel Popper, DealbookThe debate over dark pools — private, electronic stock trading platforms — may get more murky.Credit Suisse, the operator of the nation’s largest dark…

JLN Options: Options Week in Review Newsletter,Options

A recent Tabb Group report found that high-frequency trading is dominating US options trading, and that keeping up with the pace of technology in a climate of tight budgets and low trading volumes is becoming too difficult for many firms.  The industry is transforming as smaller “mom and pop” market making firms disappear. The CBOE VIX, known as the “fear index,” is up 30% this month, but a chart shows that longer maturities through September have barely budged, leading Susquehanna Financial Group’s Chris Jacobson to conclude that the VIX spike is just a blip rather than a longer term trend,…

JLN Options: ‘Fear Index’ Surging? This Chart Says It’s a Speed Bump Newsletter,Options

Lead Stories ‘Fear Index’ Surging? This Chart Says It’s a Speed BumpBrendan Conway, Barron’sThe “fear index,” which jumped 18% on Wednesday, is up 30% this month. But dig a little deeper to see the way the market prices S&P 500 (SPY) volatility has barely budged.http://jlne.ws/13kP7t6 Quantitative easing is like a ‘huge glass of warm milk’ for VIXTom Bemis, MarketWatchNicholas Colas, chief market strategist at ConvergEx, argues Wednesday that if these were normal times, the fear index would be double where it is.http://jlne.ws/XTCqai Volatility Readings Signaling Systemic Changes for Stock, Gold, FX?John Kicklighter, Daily FXVolatility is used by many as a…

JLN Options: VIX Bets Post Biggest Rally in 7 Weeks as S&P 500 Drops Newsletter,Options

Commentary & Insight Raj Mahajan, Allston Trading CEO, Talks HFT and the Business of Prop TradingMarketsWiki.tv Raj Mahajan took the reins at Allston Trading as CEO in September 2012 and has spent a good deal of his time looking at the issue of high frequency trading (HFT). Allston has been one of the proprietary trading firms who has been willing to publicly discuss HFT, regulation and the future of that form of trading. Mahajan spoke with JLN’s editor-in-chief Jim Kharouf about HFT as well as the business challenges and opportunities for prop firms. Watch the video » Lead Stories VIX…

JLN Options: Despite Gold Selloff, Options Traders Bank on Rebound Newsletter,Options

Lead Stories Despite Gold Selloff, Options Traders Bank on ReboundCarolyn Cui, The Wall Street JournalSo gold notched its biggest one-day drop in 30 years. What’s next?Despite the heavy losses, broken technical levels and waves of margin calls, the options market for the yellow metal is beaming with optimism.http://jlne.ws/15dptKq Gold Options: Graphical description of the price slumpOle Hansen, TradingFloor.comThe biggest two-day sell-off in 30 years has triggered some major moves in gold options. Implied volatility has surged, with the cost of downside protection rising the most. Implied volatility has almost doubled after rising to almost 29 percent, which in a near-term…

JLN Options: Gold VIX: Bugs Turn Fearful Newsletter,Options

Lead Stories Gold VIX: Bugs Turn FearfulSteven Russolillo, The Wall Street JournalGold’s fear gauge is getting panicky.The CBOE Gold VIX is up 57% on Monday. It is on pace to blow past Friday’s 39% surge, which at the time was the biggest-ever increase in percentage terms, according to the exchange.http://jlne.ws/YXzqs2 FOCUS: Speculators Hike Appetite For Gold In Latest CFTC Report — Just Ahead Of Price BreakKitco News (via Forbes)Speculators raised their appetite for gold, increasing their exposure to U.S. futures and options contracts traded on the Comex division of the New York Mercantile Exchange and on the Nymex, according to…