Lead Stories

BOX considers after-hours options trading  
By Telis Demos in New York and Hal Weitzman in Chicago, FT.com
Traders could get the chance to buy and sell US stock options after the closing bell, under a plan being developed by a US exchange. Tony McCormick, chief executive of the BOX Options Exchange, told the Financial Times that development of an after-hours platform is still in ”very early stages”.
“It exists for stocks, why not a subset of the options world? Electronic trading firms already accept some orders after-hours,” said Mr McCormick.  Unlike in equities, where exchanges offer after-hours trading, the options markets are closed out of normal hours. The only options trades that take place after the bell are large bilateral transactions negotiated privately by large institutional traders.
http://jlne.ws/KafeXx

NYSE Technologies to Launch Options Analytics 
NYSE Technologies would like to inform clients of the forthcoming Options Analytics product.
Options Analytics is a real-time market data feed that includes implied volatilities and Greeks for listed options, monitoring the entire U.S. OPRA Composite NBBO feed and U.S. Level 1 Composite feeds for underlying stocks and indices. This low-latency, ready-to-use data feed will provide critical analytical content for options market participants.

Index, ETF option volumes near midday
OptionMonster
Total option volume is very strong with 7.3 million options already changing hands today, and protection looks to be the name of the game in the indexes and ETFs, according to optionMONSTER’s data systems.
http://jlne.ws/Jc8sY5

Exchanges

 

Gold VIX Near 10-Month Low Amid Bets Against Stimulus: Options
2012-05-14 07:52:50.678 GMT
By Cecile Vannucci and Nikolaj Gammeltoft
May 14 (Bloomberg) — For all the concern the U.S. economic recovery is slowing, expectations for a rally in gold prices are 20 percent below the average level in the past year.
The Chicago Board Options Exchange Gold ETF Volatility Index, a gauge known as the Gold VIX that measures expected price swings for a security tracking the metal, is down 54 percent from its 2 1/2-year high on Sept. 28, data compiled by Bloomberg show. While the index climbed 13 percent to 18.46 last week, it remains 4.50 points from its one-year mean of 22.96. It averaged 30.79 in August and September as investors speculated the economy would contract.

Exchange Mergers on Hold for Now, NYSE CEO Niederauer Tells CNBC
Bloomberg By Whitney Kisling
Exchanges around the globe appear to be putting on hold plans to combine, NYSE Euronext Chief Executive Officer Duncan Niederauer, whose deal with Deutsche Boerse (DB1) AG failed this year, said in an interview with CNBC.
“I still think ultimately the destiny for this industry is to have fewer globally integrated exchanges,” he told CNBC today. “That all appears to be on hold for the time being.”
New York-based NYSE Euronext’s plan to merge with Deutsche Boerse of Frankfurt was blocked by European regulators in February on grounds that it would have created a “near monopoly” in European exchange-traded derivatives. The failure came after plans for mergers between Toronto and London, and Australia and Singapore also fell through.
http://jlne.ws/LJWq58

Options on Futures

Futures and options have stopped trading suddenly on NSE
Moneylife Personal Finance site and magazine
NSE said there was issue with order inflow, which is now resolved, but there are still some problems in order confirmation. Dealers do not confirm this.
The trading on National Stock Exchange seems to be facing critical technical issues. According to brokers, they are unable to do any trading in  futures. Trading in all futures products such as Nifty, Bank Nifty, CNX IT, newly-launched FTSE etc are frozen since 1.36pm. Traders are unable to place execution orders in NSE F&O segment.
http://jlne.ws/J4SFc7

Strategy

Time to Prepare for Fear? 
By STEVEN M. SEARS, Barrons.com
As Greek woes heat up again, options strategists are offering up some hedges for U.S. stocks.
The market’s fear gauge might be at a relatively subdued level. But many investors are starting to act as if the Chicago Board Options Exchange’s Volatility Index, otherwise known as the VIX, will soon be sharply higher. This subtle shift is evident in the increasingly defensive-related options positions that industry experts are suggesting to clients.
“At this point in the volatility cycle, we believe each new tremor is incrementally more likely to be the beginning of the next, inevitable shock,” Jim Strugger, MKM Partner’s derivatives strategist told clients Monday, sounding a warning echoed around Wall Street.
 http://jlne.ws/Kmxy49

Currency Traders Head For Safety
By Jessica Mead, WSJ.com
LONDON—A reassuring Italian bond auction helped stem the euro’s slide Monday but currency traders remained wary of riskier bets such as the euro and the Australian dollar as the specter of a Greek euro-zone exit continued to haunt markets. The euro remained below $1.29 against the dollar and was also under pressure against the likes of the yen and the pound as fears about a Greek euro exit intensified. Poor euro-zone industrial output data for March and a soggy Spanish Treasury Bill auction also undermined the common currency. In derivatives markets, foreign exchange options, which give holders the right but not the obligation to buy or sell a currency pairing at a set level in the future, showed investors demanding more downside protection for the euro.
http://jlne.ws/KWQUK5

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