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Tag Archives: volatility

It’s WAR! Newsletter,Options

Observations & Insight TGI (Tariff) Friday SD – JLN Round 1 of the official tariff tiff began last night. How are you feeling? While foot traffic has diminished in downtown Chicago this week as vacations take their toll on active headcount and the usual “summer quiet” stories making the rounds, I don’t feel lulled (other than the dearth of options specific news). The “lack of lull” feeling isn’t totally out of place. Daily notional turnover on U.S. NMS exchanges in June was $350.1 billion compared with a summer norm of <$300 billion. (July has been slower thus far.) “China this,…

OCC margin breaches spike in Q1; Flash crash blame game Newsletter,Options

Observations & Insight Traders Grapple With a Big Question: Are Tariffs Priced In? Samuel Potter – Bloomberg After months of simmering tension between the world’s two largest economies, the U.S. will impose tariffs on $34 billion worth of Chinese goods at just after midnight on Friday. The key question for financial markets: will it trigger fresh volatility, or is the trade war escalation already priced in? /jlne.ws/2Kzbiv7 ****SD: Well?! Are they? Lead Stories OCC margin breaches spike in Q1 Alessandro Aimone – Risk.net (SUBSCRIPTION) The Options Clearing Corporation (OCC), the world’s largest equity derivatives clearing house, reported 38 margin breaches…

Investors seek cover as trade battles rattle world markets Newsletter,Options

war cover

Observations & Insight The Spread – Week of 6/25 to 6/29 JohnLothianNews.com Looking for something to take your mind off of the summer heat? Well, we have a GEM of a “Spread” for you. (Yes, we talk about Geneva Energy Markets this week.) Watch the video and see the stories referenced here » ++++++ AI is changing this industry. Now what? Jim Kharouf – JLN I spent last week listening to experts in artificial intelligence talk about what AI can and will bring to the markets and the broader world. What is patently clear is that AI is here now…

The Spread – Week of 6/25 to 6/29 Video,video

Looking for something to take your mind off of the summer heat? Well, we have a GEM of a “Spread” for you.  (Yes, we talk about Geneva Energy Markets this week.)  The following are stories referenced in this week’s episode:  Business Insider – Goldman Sachs has created a new team to take on high-speed traders like Virtu and Citadel at their own game Dealbreaker – Behold, The Ultimate Wall Street Summer Dance Video Bloomberg – Top Oil Market-Maker Closes After ‘Damaging’ Regulatory Changes Bloomberg – Rare Shift in ‘Fear Gauge’ Shows Depth of Market Angst Bloomberg – Hedge Fund That Made…

tastytrade raises $20m; February’s legacy; ETFs using derivatives; CME latency tricks Newsletter,Options

Observations & Insight Hot Friday In Chicago SD – JLN With all the trade rhetoric floating around and the market’s intraday gyrations, I haven’t felt the onset of stereotypical summer sluggishness. Until today. Something about waking up to “excessive heat” warnings on my weather app, spot VIX opening lower (S&P 500 up, Dow up, Russell up) and it being a slightly slow day for options news just feels like summer. Well, that and the fact that an array of fireworks have been going off in my neighborhood’s alleys since Wednesday… Speaking of black powder, it’s a short week next week…

Houndstooth’s long-vol ETF bet; GEM liquidates its books; Earnings worries Newsletter,Options

Observations & Insight Big World Cup Correction and other Miscellany SD – JLN Boy oh boy did I misread the Germany v. Korea recap. It was NOT at all novel that the previous World Cup winner was knocked out in the group stage. In fact, it’s the opposite. From the USA Today:: “Four of the last five winners of the previous tournament have now crashed out in the group stage the next time around.” I should stick to American football references I guess… (That doesn’t alter the fact that UBS’ and Goldman’s computer predictions were way off, though.) Speaking of…

Two Studies on Options Use – Institutional Users and European Demand Feature,Mwiki,Video,video

Over the past two months, two studies commissioned by the Options Industry Council were released. The  studies about the varying uses of options by different market participants were conducted Greenwich Associates and Burton-Taylor International Consulting, respectively.   The first study, conducted by Greenwich, looked at how institutional users of exchange-listed options view the product. In the below video filmed at the Options Industry Conference in Amelia Island, OIC’s Joe Cusick and Greenwich’s Richard Johnson go over some of the key findings of the study.   The second study, conducted by Burton-Taylor, found that some 9 percent of U.S. options order flow comes…

JPM sees signs of VIX fix working; Goldman’s new team; BNY’s FX options Newsletter,Options

Observations & Insight The Curve Spencer Doar – JLN One of yesterday’s top stories was Bloomberg’s Rare Shift in ‘Fear Gauge’ Shows Depth of Market Angst. At the time we published, the front month July VIX futures contract traded higher than August by more than .5 – defying the curve’s normal contango. However, that is a far cry from when the whole curve went into backwardation after the early Feb blowup and by the end of Monday that inversion was down to .08. By the time of publishing, that particular kink in the curve went away. Today’s open plotted with…

OCC Rebranding; Accidental HFT Firm; VIX Curve; Trade Tensions Newsletter,Options

Observations & Insight Treasury Secretary Mnuchin says investment restrictions will apply to ‘all countries that are trying to steal our technology’ Evelyn Cheng – CNBC Treasury Secretary Steven Mnuchin said Monday that a forthcoming statement from the government related to reports of investment restrictions will apply to China and other countries that threaten U.S. intellectual property rights on technology. /cnb.cx/2InYKRn ****SD: I thought Mnuchin was supposed to be the moderating influence with Cohn gone? ++++ The Accidental HFT Firm Matt Hurd – TABB Forum To many, high-frequency trading remains a mystery. According to Matt Hurd, it is simply the law…