ISE Announces Mini Options Launch Date of March 18, 2013
The International Securities Exchange (ISE) today became the first exchange to confirm a launch date of March 18, 2013 to commence trading in Mini Options. Since receiving Securities and Exchange Commission (SEC) approval for this innovative new product offering, ISE has been coordinating with its member firms to determine an appropriate date for launch readiness. Mini Options will represent a deliverable of 10 shares of an underlying security, whereas standard contracts represent a deliverable of 100 shares. ISE will initially list Mini Options on the following securities: AAPL, AMZN, GLD, GOOG, and SPY.
http://jlne.ws/XVsc8W CFTC Charges Ireland-based “Prediction Market” Proprietors Intrade and TEN with Violating the CFTC’s Off-Exchange Options Trading Ban and Filing False Forms with the CFTC
The U.S. Commodity Futures Trading Commission (CFTC) today filed a civil complaint in federal district court in Washington, DC, charging Intrade The Prediction Market Limited (Intrade) and Trade Exchange Network Limited (TEN), Irish companies based in Dublin, Ireland, with offering commodity option contracts to U.S. customers for trading, as well as soliciting, accepting, and confirming the execution of orders from U.S. customers, all in violation of the CFTC’s ban on off-exchange options trading. The CFTC’s complaint also charges Intrade and TEN with making false statements concerning their options trading website in documents filed with the CFTC, and charges TEN with violating a 2005 CFTC cease and desist order (see CFTC Press Release 5124-05, October 4, 2005).
http://jlne.ws/Slrygv Wall St Week Ahead: Political wrangling to pinch market’s nerves
Rodrigo Campos, Reuters
Volatility is the name of this game.
With the S&P 500 above 1,400 following five days of gains, traders will be hard pressed not to cash in on the advance at the first sign of trouble during negotiations over tax hikes and spending cuts that resume next week in Washington.
http://jlne.ws/V8q3VC Gold’s at Its Cheapest (Volatility) Price EVER
Tyler Craig, InvestorPlace
The realized volatility in Wall Street’s favorite gold proxy — SPDR Gold Shares (NYSE:GLD) — has remained within its normal range of late, but implied volatility — as measured by the Gold VIX (CBOE:GVZ) — has stealthily fallen to all-time lows.
http://jlne.ws/V27sow ‘Fear’ Gauge Showing Little of It
Steven Russolollo and Kaitlyn Kiernan, The Wall Street Journal
On the floor of the Chicago options exchange, those who trade in fear have seen little but calm.
Unlike the rocky ride in the stock market since the U.S. presidential election, the Chicago Board Options Exchange’s Volatility Index, or VIX, has registered tranquility. For four months, the so-called fear gauge of financial markets has traded below its two-decade historical average of 20, its longest such streak in more than five years.
http://jlne.ws/V8qeQQ Wall Street 3.0 Changing the Rapidly Evolving Financial Advisory Business, Says TABB Group
In a new research note published today, “Mobile Markets: Too Flexible to Fail,” TABB Group says that fast emerging financial communities on social networks, disseminating financial data much faster than traditional media outlets, now rival investment banks as a source for market color, trading analysis and investment ideas.
http://jlne.ws/V28y3C A head start for HFT; or a downward spiral?
Dave Simons, FTSE Global Markets
Like any rapidly maturing industry, HFT has likely seen the last of the outsized profits. “Margins are being squeezed, and firms are being forced to seek out new ways to make money,” offered Instinet’s Alison Crosthwaite in a recent commentary. A reduction in margins and market share will likely coincide with an increase in HFT consolidation as smaller firms unable to keep up with the higher costs of technology and regulatory compliance are gobbled up or forced out of the business altogether.
http://jlne.ws/V29e9o Mini-Flash Crashes Continue To Fly Under The Radar
Ivy Schmerken, Advanced Trading
High-frequency trading in the U.S. equity markets continues to result in strange price movements, raising concerns about the interaction of technical glitches, fat finger errors and algorithms in the electronic markets.
Price moves in U.S. stocks that appear to drop or spike upward for no particular reason, only to rebound a few seconds later, have become a daily occurrence in computer-driven equity markets.
ExchangesMCX-SX Broker Fees, Costs to Be Transparent, Dependable:
Santanu Chakraborty, Bloomberg
Jignesh Shah, the vice chairman of MCX Stock Exchange Ltd., comments on plans to begin equities trading and developing bond markets. He made the comments in an e-mail.
MCX-SX conducted a test session on Nov. 19 to familiarize brokers with its trading platform. The bourse will begin stock trading when the number of members reach 350, it said in an e- mailed statement that day.
http://jlne.ws/V26BUX BATS Global Markets Expands Access Of Risk Management And Kill Switch Tools To All Members
BATS Global Markets (BATS), a leading operator of securities markets in the U.S. and Europe, today rolled out a suite of risk management tools available at no charge to all members of its U.S. equities and equity option markets to help them mitigate risk.
Beginning today the tools are available to all members of the BATS BZX Exchange, BYX Exchange and BATS Options at no charge with no additional latency incurred on inbound orders to BATS.
http://jlne.ws/V28Nfc Timing is crucial for Nasdaq OMX derivatives venture
Michelle Price, Financial News
Nasdaq OMX, the equity and derivatives exchange, is racing to launch a new interest rate futures platform, NLX, by the first quarter of next year to take advantage of regulatory-driven change in Europe’s clearing landscape.
StrategyTrading Plan: Exit Strategies For Bull Put Credit Spreads
In our latest series of articles we have discussed a bull put credit spread options play for Priceline (PCLN). When entering any investment strategy, even just a long stock position, you must have your exit strategies and potential management techniques planned out for the various outcomes.
EventsNYSE Euronext to Present at the Goldman Sachs Financial Services Conference
NYSE Euronext (NYX) today announced that Duncan Niederauer, Chief Executive Officer of NYSE Euronext, will present at the Goldman Sachs Financial Services Conference at the Conrad New York Hotel in New York City on Wednesday, December 5, 2012 at 7:30 AM (ET).
A live webcast of the presentation will be available on NYSE Euronext’s Investor Relations website: http://ir.nyse.com/ .