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An Obscure Oil Bet Takes Off; The VIX Is at a Two-Year Low, But Volatility Trading Is Surging; A volatile calm – the paradox of 2016 financial markets Newsletter,Options

Observations & Insight JLN Options Publishing Schedule In light of the upcoming holiday, JLN Options will not be publishing Friday, December 23, and Monday, December 26. Have a safe and joyous weekend everyone! Best wishes, The JLN Team Lead Stories An Obscure Oil Bet Takes Off Gunjan Banerji and Alison Sider – WSJ Traders often turn to plain-vanilla options on oil futures to wager on crude prices, which recently have been whipsawed by oil producers’ efforts to curtail global output. But a less-popular approach is attracting attention. These options allow traders to bet on the price gap itself. On Wednesday,…

The Dispersion Trade; Kolanovic Sees Higher Risk Potential In 2017, Volatility Not Properly Priced; A Trader’s Guide to Donuts, Wheat and Algorithms … Newsletter,Options

Observations & Insight JLN Options To Have Guest Editor: The Schwartz Will Be With Us As much as I’m sure you all love the JLN team’s snark and irreverence, sometimes we shake things up. As such, next week we will have a guest editor: Trade Alert’s Henry Schwartz. Schwartz will provide his insight and commentary for JLN Options. Enjoy the different spin next week! ++++ Jim Kharouf Named New CEO of John J. Lothian & Company, Inc.; John Lothian Moves to Executive Chairman; Kharouf Gets Equity Stake In Firm James Kharouf has been named CEO of John J. Lothian &…

Options Clearing Corp shakes up senior management; American Shale Companies’ Rush to Hedge Is Turning the Oil Market Upside Down; A Market Under Distribution Has No Mercy Newsletter,Options

Lead Stories Options Clearing Corp shakes up senior management Tom Polansek – Reuters The primary clearinghouse for U.S. options trades named new finance and compliance chiefs on Friday in the latest C-suite shake-up aimed at improving oversight. The Options Clearing Corp, known as OCC, also said it had hired a former CME Group Inc (CME.O) executive to fill a newly created treasurer’s position. The changes are part of an overhaul in leadership as OCC works to bolster the way it manages finances and risk after its regulator, the U.S. Securities and Exchange Commission, raised concerns in recent years. jlne.ws/2gUqDEp American…

OCC Cleared Contract Volume Increased 20 Percent in November; Citi Said to Weigh Derivative Desk Move to Frankfurt on Brexit; Traders are betting that volatility is about to spread Newsletter,Options

Observations & Insight The View from Convergex: Reinvention, Options and Market Structure Spencer Doar – JLN It may come as a surprise that Convergex, the agency brokerage with headquarters in New York, has a hand in approximately 20 percent of all options routed through U.S. listed options exchanges and actually executes some 8 percent of daily options volume. The company has been reinventing itself over the last two-and-a-half years under the leadership of Eric Noll, who became CEO in the wake of a 2013 settlement. Convergex’s reputation took a hit when it admitted it had defrauded customers by inflating its…

OPEC Agrees to Cut Production in Drive to End Record Glut; A World Without Market Makers; No Absolute Immunity For Exchanges, SEC Tells 2nd Circ. Newsletter,Options

Observations & Insight Blockchain That Makes Sense: How Post-Trade Digital Ledger Technology Will Make Banks And Brokers Happy Jim Kharouf – JLN When you talk about the potential for digital ledger technology, words like revolutionary and transformative are often mentioned. Ray Kahn and Thorsten Peisl are not in the disruptor camp. Yet both left solid jobs in the financial markets and launched blockchain start-ups aimed at bringing new efficiencies to the marketplace. Their message about blockchain was clear at the World Federation of Exchanges annual meeting in Cartagena, Colombia this month. Yes, blockchain is coming. No, it’s not going to…

Options Signaling Momentum to Drive Stocks Higher; Options Say Italian Referendum Won’t Jolt Stocks Across Europe; Guess What Day It Is! It’s FOMC Day! Newsletter,Options

Lead Stories Options Signaling Momentum to Drive Stocks Higher Gunjan Banerji – WSJ Options that allow investors to wager on the S&P 500 are suggesting that the benchmark could keep setting fresh records. A post-election rally sent the Dow Jones Industrial Average above the 19,000-level this morning for the first time ever, as the S&P 500 breached the 2,200 threshold. Four major equity benchmarks hit all-time highs yesterday. bit.ly/2fCblTH ****SD: TD Ameritrade’s Ticker Tape has the skinny on recent market action – Record Run Continues, Driven By Oil Ahead of Possible Output Cut Options Say Italian Referendum Won’t Jolt Stocks…

Market Calm Back as Short-Term Volatility Falls Most Ever; OCC News; Post-Trump About-Face Triggers 2 Rare S&P Signals Newsletter,Options

Observations & Insight 2016 Could Be The Year Of The CEO By Jim Kharouf, JLN Editor-in-Chief Forget the Chinese New Year plunge, Brexit, The Donald or even the Cubs. This is also shaping up as the year of the new CEO, with exchanges and clearinghouses especially, in moves that could reshape our markets in the coming years. The two biggest CEO changes came within days of each other, with Terry Duffy taking the reins as CEO at CME Group from Phupinder Gill and Adena Friedman at Nasdaq, taking over from longtime CEO Robert Greifeld at the start of 2017. They…

Ding-dong the VIX is dead (but risk is rising); Europe is ‘unlikely’ to seize euro-based clearing from London, says S&P; Yellen Signals Fed Remains Likely to Raise Rates Next Month Newsletter,Options

Lead Stories Ding-dong the VIX is dead (but risk is rising) James Saft – Reuters The VIX, the so-called fear gauge, is dead but the real risk-appetite index is falling. The dollar is the new and true North Star of global markets, according to a study released on Tuesday by the Bank for International Settlements, with a rising dollar coinciding with falling risk tolerance. This just in time for the Trump era, widely expected to bring with it rising inflation and interest rates driving a rising dollar. /goo.gl/UckqBt ****SD: Maybe people always inferred too much from the VIX? Whatever the…

The Black Swan – the new symbol of the United States of America Americas,Banks, Brokers & Managed Funds,Blog,Commentary,Exchanges, OTC & Clearing,Feature,Investing & Trading,Mwiki,Politics,Regulation,Regulation & Enforcement

  Yah baby, Yah! Dodd-Frank, gone. Clearing mandate, gone. Regulations, gone. Low interest rates, no problem. Volcker Rule, gone. Volatility, you bet. Bullish on the exchange sector, you bet. The American voters just unleashed the greatest gift on the world of trading we could have ever asked for. We will now have volatility at all times of the day and night. Binary contracts just became a big thing. Forget about market direction. You better learn to trade volatility. We just made the Black Swan the new symbol of the United State of America. Goodbye Eagle. You want some Twitter rants…