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Tag Archives: volatility

JLN Options: High-Frequency Trading Is ‘Basically Evil’: Munger Newsletter,Options

Lead Stories High-Frequency Trading Is ‘Basically Evil’: MungerPaul Toscano, CNBC (via Yahoo Finance)Events in Europe are a great example of bankers gone wild and you simply can’t trust them, said Warren Buffett’s right-hand man Charlie Munger.http://jlne.ws/10x8N94**Munger goes after more here than just HFT.  As regards HFT John Lothian News recently interviewed Raj Mahajan, Allston Trading CEO, who has a different take on HFT than Munger does. Go here to watch the video (not taking sides here, merely offering a counterpoint). –JB CBOE outage won’t limit listing of stock-index options: new CEOAnn Saphir, ReutersThe Chicago Board Options Exchange outage that blocked…

JLN Options: Investors Spooked Ahead of Big Data Days Look to Put Options Newsletter,Options

Lead Stories Investors Spooked Ahead of Big Data Days Look to Put Options Kaitlyn Kiernan, The Wall Street JournalWith key U.S. employment data looming Friday, a pair of central bank policy meetings this week and major stock benchmarks at record highs, options traders are getting defensive.Options traders are zeroing in on short-term contracts that protect against declines in the SPDR S&P 500 exchange-traded fund and the iShares Russell 2000 Index Fund.http://jlne.ws/12WkAST CFTC Commissioner Proposes Derivatives Transaction Fee  Jamila Trindle, The Wall Street JournalCommodity Futures Trading Commission member Bart Chilton plans Wednesday to propose a transaction fee for derivatives markets, an idea that…

JLN Options: Options Markets are Being Overly Sensitive Newsletter,Options

Lead Stories Options Markets are Being Overly SensitiveJared Woodard, Condor OptionsOne of the most important market signals over the last five years has been the slope of the VIX futures term structure. In quiet, bullish markets, short term option premiums are significantly lower than longer-dated implied volatility; when risk scenarios roil markets, the term structure flattens and then steepens in the other direction.http://jlne.ws/18l3j65 Derivatives Help Mask Equities Pain at NYSE Euronext  Tim Cave, The Wall Street JournalJeff Sprecher, ICE chief executive, has obviously done his homework.When he made his bid for NYSE Euronext NYX +0.14% in December, he said the Liffe…

JLN Options: CBOE Working to Resolve Incorrectly Sent Trades – Exchange Newsletter,Options

Lead Stories CBOE Working to Resolve Incorrectly Sent Trades – Exchange Jacob Bunge, The Wall Street JournalThe Chicago Board Options Exchange said “numerous” trades from Thursday appeared in its system after Friday’s market close, potentially leaving customers with incorrect positions.http://jlne.ws/ZLV5EM About that Friday Turnaround in the Price of GoldBrendan Conway, Barron’sGold’s price is rising Monday and has reached as high as $1,478, a peak since April 12.Friday, the metal’s price took a turn lower for no obvious fundamental reason. Here’s more color on the midsession turnabout from Susquehanna Financial Group – specifically on the alleged role of options-market activity:http://jlne.ws/Zgs4N3 Twitter…

JLN Options: Options leaders opposing tax reforms and transaction tax Newsletter,Options

Commentary & Insight Options leaders opposing tax reforms and transaction taxBy Jim Kharouf Options exchange leaders at the Options Industry Conference in Las Vegas voiced strong opposition to proposed tax reform and transaction tax proposals. Steve Crutchfield, who heads NYSE Arca and NYSE AMEX, said that the proposal at tax reform would issue a tax on regular retail investors who are looking to cover their stock positions. The 60/40 tax treatment is also under fire, under the proposal. Crutchfield said that the proposal is “a severe deterrent to investors to manage their risks.” “Just buying some downside protection while I…

JLN Options: CBOE Reopens After Malfunction Shuts Options Exchange Newsletter,Options

Lead Stories CBOE Reopens After Malfunction Shuts Options ExchangeNikolaj Gammeltoft, Nina Mehta & Lu Wang, BloombergThe Chicago Board Options Exchange opened for trading three-and-a-half hours late today after a software malfunction shut the derivatives market as its top executives were away at an industry event in Las Vegas.http://jlne.ws/14T3jyj CBOE Holdings Statement on Today’s Trading Issue Press Release (CBOE – full text)CHICAGO, IL, April 25, 2013 — CBOE Holdings, Inc. (NASDAQ: CBOE) statement regarding this morning’s trading issue: This morning, a system issue delayed the opening of options trading at Chicago Board Options Exchange (CBOE) from 8:30 a.m. until 11:50 a.m….

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…