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Tag Archives: volatility

Nobel Laureate – Buffett’s WMDs Help Society; How air pollution on Wall Street might actually be bringing down the stock market; Commodity traders must go digital or face extinction – report Newsletter,Options

Observations & Insight Bits & Pieces JLN Staff The CME reported third quarter earnings this morning and a couple of items were worth noting. CME is making progress in its ongoing efforts to attract Asian customers. CME CEO Phupinder Gill told analysts that the region has been a strong contributor to CME’s metals and energy product groups. Volume in its natural gas options out of Asia rose 104 percent, and in metals, volumes from the region were up 44 percent. The other item worth mentioning is that the daily options volumes on CME’s Globex platform hit an all-time high in…

Uneasy Calm Grips Markets Suddenly Silent Before U.S. Vote; Option Writing Mutual Funds Gain Fans in Volatile Times; Rates Are Poised to Rise But the VIX of Treasurys is Super Low – What Gives? Newsletter,Options

Observations & Insight Stepping Forward in London By John J. Lothian Well, it is about time. I will be delivering my first presentation as part of MarketsWiki Education World of Opportunity in London on Monday. Due to a scheduling conflict, Jock Percy of Perseus had to withdraw from the event on October 31. Stuff happens and you roll with it. So it will be my turn to step up and be a presenter. The question in my mind is whether I can keep my presentation in the 12 to 14 minute segments we allow the speakers. I am going to…

Dealing with structural complexity in global derivatives markets; The VIX – Not So Fearsome After All?; Treasury Yield Curve Flattens as Draghi Downplays Altering QE Newsletter,Options

Observations & Insight Run Gary Run By Jim Kharouf It has been almost two years since Gary Gensler left the Commodity Futures Trading Commission as perhaps its most talked about, debated and in some circles, despised chairman. To some, his unrelenting drive to pound home rules established by the Dodd-Frank Act was considered a declaration of war against the derivatives industry. To his supporters, his determination was lauded, and he was considered one of the guys who was ready to stand up to Wall Street and LaSalle Street all in the name of Main Street. Now Gensler has grabbed attention…

Investors May Be Misjudging U.S. Election Volatility; CBOE-Bats tie-up seen as opportunity to reduce trading costs; Buy-Write Funds Don’t Have As Big An Impact As You May Think Newsletter,Options

Observations & Insight Bits & Pieces By Jim Kharouf Next week is one of the biggest weeks of the year for the industry, with FIA Expo in Chicago from October 18th (opening night) to October 20th. John Lothian News will be publishing two pieces in the coming days that we hope will serve as discussion points during the show and beyond. JLN Associate Editor Spencer Doar has put together a special news report on the growth of options on futures. That segment of the business has grown dramatically in recent years and may continue to be one of the growth…

Half Full: Trade Alert’s Schwartz Says Options Industry Has Growth Opportunities Blog,Commentary,Options

Jim Kharouf

Today’s options market is a mixed bag of some strong products gaining traction but, in general,  the industry has slowed dramatically over the past decade. Henry Schwartz, president of Trade Alert, speaking at the 34th Annual Options Industry Conference in Palos Verdes, California on Wednesday, told the audience that options industry volume growth has slowed from 14.7 percent over the past 20 years, to 8.5 percent over the past 10 years, to just 2 percent in the past 2-year period. Schwartz attributed the slowdown over the past couple of years to the continued ripple effect from the 2008 financial crisis,…

Can’t Stop the Signal: FX Traders in the Era of Big Data Blog,Financials

By James Cochrane The foreign exchange markets are at an important crossroads. While these markets have benefitted enormously from technology developed over the last two decades, there remains a struggle around the best and most efficient ways to leverage continued technology innovations going forward. The era of big data has already altered FX. Instantaneous, aggregated trading information makes it possible to see markets all over the world at once and in real time. All of this new available trading information has been great for currency traders, who can run up as many trading connections as they can reasonably afford and…

John Lothian Newsletter: Discount Retailer Overstock Has New Target: Upending Wall Street; Goldman Sachs throws support behind IEX exchange application; European Dark Pools Expand in Face of Rules Limiting Their Use John Lothian Newsletter,Newsletter

First Read Chicago Board Options Exchange: Back to the Futures Spencer Doar – JLN Yesterday was the CBOE‘s annual press luncheon — a chance to hear from the horse’s mouth what has been going on in the stable. The key takeaway from CEO Edward Tilly and President/COO Edward Provost was the development of their next generation trade engine, CBOE Vector. Vector has been in the works for two years and and is ready to be rolled out, beginning in Q3 of 2016 for products listed on the CBOE Futures Exchange (CFE). The current system, CBOEdirect, traces its roots back to…

STAC Tackles Volatility, Social Media and Blockchain Blog

STAC Conference

The Security Traders Association of Chicago holds its Midwinter Meeting this week at the Hilton, bringing in industry participants from a variety of warmer climes than Chicago. Day one covered such seemingly disparate issues as volatility and volatility products, social media for traders, and Bitcoin/Blockchain technology.   Some highlights from the panel called “Volatility: Shaken Up with New Products and Less Risk”, moderated by the CBOE’s Matt Moran, included: If you look at skew worldwide, it is highest in the U.S.  One reason for this, according to Joe Aiken from Malachite Capital Management, is that most S&P option activity is…

Sweet 16: The Tops for 2016 Special Report

At last fall’s FIA Expo Chicago, John Lothian News partnered with Cinnober Financial Technology to  bring you industry conversations, where we conduct short interviews with industry participants on the important topics facing the financial markets. The 2015 theme is “Sweet 16: The Tops For 2016.” What technology, regulation, exchange or macroeconomic issue or trend will be most important to our industry next year? We will take the 16 best ideas and thoughts and package them in a John Lothian News video series. Here is what our participants had to say: Part 1 – Exchanges: Exchange leaders will be dealing with…