Lead Stories Brodsky At CBOE Risk Management European Conference: Announces Plans For 24-Hour VIX Futures Trading And CFE London Hub
Press Release
CBOE Futures Exchange, LLC (CFE) plans to expand trading hours for CBOE Volatility Index (VIX Index) futures to virtually 24 hours from eight hours beginning sometime in 2013, CBOE Holdings Chairman and CEO William J. Brodsky announced today at the CBOE Risk Management Conference Europe near Dublin, Ireland. VIX Index futures will be the first contract traded on a CBOE Holdings exchange with around-the-clock access, five days a week, pending regulatory approval.
http://jlne.ws/OpIXQT CME Europe Plans to Add Currency Options at London Venue
Nandini Sukumar, Bloomberg
CME Group Inc. (CME), which plans to open a derivatives market in London next year for currency futures, will add foreign-exchange options as it expands the service.
CME Europe will focus on boosting volume in all of its products to 5,000 to 10,000 contracts daily, a level that will encourage traders to use the system, Robert Ray, chief executive officer of the new exchange, said in an interview today.
http://jlne.ws/QcZigm Nasdaq And NYSE Look To Revive Investor Confidence
Trefis
Nasdaq OMX (NASDAQ:NDAQ) has been hit hard by the recent slump in investor confidence in the U.S. markets. U.S. equity shares volume dropped 15% from June to July, representing a year-on-year decline of 13%. [1] Options trading volume for July also suffered an 18% year-on-year decline amid growing concerns over rising national debt, which currently stands at a whopping $11 trillion and the budget deficit in the months leading up to the general election.
http://jlne.ws/QcYPeg

Exchanges

CBOE RMC Europe Daily Recap 
Press Release
The inaugural CBOE Risk Management Conference (RMC) Europe kicked off this afternoon with three sessions designed as options and volatility primers to set the table for the next two days.
In the first session, CBOE’s Jim Bittman and Mercurious’ Jerry de Leeuw discussed the fundamentals of options pricing and strategies. A passive strategy, such as the BXM Index, matches returns of the stock market (higher) and has the variability of returns of bonds (lower). Investing with options is similar to playing chess, as both require similar strategic thinking – “learn what your moves are and adapt to the psychology of options and trading equities.”
http://jlne.ws/PL6YBW BATS Global Markets Achieves New US Equities Market Share Record – 12.8%, U.S. Options Market Share at 3.7%
Press Release
BATS Global Markets (BATS),a leading operator of securities markets in the U.S. and Europe, today reported August U.S. equities market share of 12.8%, the best monthly market share performance in the company’s six-year history.
Much of the growth was driven by the company’s BYX Exchange, which set a monthly market share record of 3.7% less than two years since its October 2010 inception.
http://jlne.ws/OpOabk KCBT HRW Wheat Futures & Exchange Volume Third Largest for Month of August
Press Release
The Kansas City Board of Trade HRW wheat futures and exchange volume traded during the month of August was the third largest in the history of the exchange for the calendar month of August.
HRW wheat futures volume of 532,151 contracts was the third largest for the month of August, behind only the August record of 752,383 contracts set in 2010 and 2011 volume of 665,415 contracts. This month’s volume was an increase of 15.5 percent over July 2012 volume.
Total exchange volume of 537,714 contracts also was the third largest for the month of August, with the August record of 765,357 contracts set in 2010 and 2011 volume at 680,022. Total exchange volume increased 14.1 percent over July 2012 volume.
http://jlne.ws/QlkheS MCX-SX membership to cost 15-80% less (India)
Nitin Shrivastava, Daily News and Analysis
MCX Stock Exchange (MCX-SX), which recently received regulatory approval to function as a full-fledged national exchange, has come out with an aggressively priced membership cost structure to attract new brokers.
Its limited-period membership offer, announced on Wednesday, is 15-80% cheaper than those offered by rivals BSE and the National Stock Exchange (NSE).
The offer, which runs till October 18, would involve net outlay (including admission fees and deposit) of Rs25 lakh for entry-level membership to cash and the futures and options (F&O) segments.
http://jlne.ws/OpONla

Regulation

Pruning Hedge Fund Regulation Without Cultivating Better Rules
Jesse Eisinger, ProPublica (via Dealbook)
Fresh from having declined to constrain money market funds, the Securities and Exchange Commission has moved to loosen marketing constraints on hedge funds.
Two weeks ago, the agency threw up its hands and said it would not be able to defend millions of investors from money market funds that do things like invest in dodgy European bank bonds yet proclaim themselves to be perfectly safe.
http://jlne.ws/PL6YC3
** A hedge pun?  Didn’t know such a creature existed.  Never seen one in the wild before. –JB Regulators Clarify Timing of New Derivatives Rules
Ben Protess, The New York Times Dealbook
As Wall Street gears up for an overhaul of the $600 trillion derivatives business, big banks have grumbled that regulators failed to specify when the new policies will take effect.
After months of uncertainty, the issue reached a happy conclusion for the banks. Federal authorities now say the new regime will not kick in until Jan. 1, providing clarity and a brief — but important — extension to Wall Street.
http://jlne.ws/Qd4pNI

Strategy

Profit From a Nonchalant Options Market
Investors have the opportunity to position for major upcoming market events without paying a fear premium.
Steven M. Sears, Barron’s
Is the options market asleep?
Puts and calls almost always reflect the risk facing the stock market. But Standard & Poor’s 500 index options that expire in one month are less expensive than ones that expired in June and July even though the market calendar during the next few weeks is heavy with risk.
http://jlne.ws/OXerNE The FX Options Market’s Take On The EUR-USD
Sean Bellamy McNulty, Seeking Alpha
An old professor of mine at the National University of Singapore mentioned that he had read a research paper that concluded that the options market is an excellent leading indicator of events to come. This is due to options being traded by “sophisticated” investors who disseminate information more efficiently.
http://jlne.ws/OpMnDe Gold speculation vehicles: gold stocks versus options
Sam Kirtley, Stockhouse
Gold stocks used to be the best way for the ordinary investor to increase their exposure in the search for higher returns. Not any more.
The simplest way to speculate on rising gold prices is to buy gold itself. This is no secret. However, some investors and traders wish to add leverage and optimize their position to increase their exposure and profits. Traditionally, investors would buy gold mining stocks to increase their exposure to the gold price. The rationale behind this theory is arguably based on sound accounting principles, but fails in practice.
http://jlne.ws/Qd4OQc

Events

CBOE Holdings, Inc. To Present At Barclays Global Fin ancial Services Conference On September 11
Press Release
CBOE Holdings, Inc. (Nasdaq: CBOE) today announced that Edward T. Tilly, President and Chief Operating Officer, will present at the Barclays Global Financial Services Conference in New York, NY, on Tuesday, September 11, at 9:45 a.m. Eastern Time.
The presentation, to be broadcast live over the Internet, can be accessed at www.cboe.com under Investor Relations, Events and Presentations.  Approximately 24 hours after the live presentation, an audio Webcast will be available for replay at the same address.
http://jlne.ws/PL72By

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