JLN Options: Approval Pending, Miami Exchange Plans Its Launch

Nov 28, 2012

Lead Stories

Approval Pending, Miami Exchange Plans Its Launch
Jacob Bunge, The Wall Street Journal
The Miami Options Exchange plans to open for business Dec. 7, though the market has yet to be granted formal approval by U.S. regulators.
The planned stock-options exchange, which aims to become the 11th U.S. options market, told banks and financial firms of the expected launch in a notice that outlined the final tests of its new trading system.
http://jlne.ws/QM0Y1N

Only The VIX Gets The Fiscal Cliff
Joe Weisenthal, Business Insider
If you watch coverage of the Fiscal Cliff, you might think that on January 1, the economy is going to go full on Thelma & Louise and crash to its fiery death into a gigantic canyon if there’s no deal. Every network is running countdown clocks to the moment the US meets its demise. 38 days! 37 days! 36…
http://jlne.ws/Tlwyil

Gold futures drop as much as $36 an ounce
Myra P. Saefong, MarketWatch
Gold futures sink by as much as $36 an ounce on Wednesday, with the market blaming the move on everything from “fat finger” trades, technical selling, and the expiration of options and futures contracts to deflationary concerns and a stronger U.S. dollar.
http://jlne.ws/QM3wNk

Getco bids to take control of Knight Capital
David Henry, Reuters
Trading firm Getco Holding Co said it offered to take control of Knight Capital Group Inc in a deal that values the electronic trading firm at $3.50 a share, sending Knight shares up 15 percent in early trading Wednesday.
http://jlne.ws/TlvJ9p

How ETFs Will Destroy Wall Street
Dan Caplinger, Motley Fool
For decades, ordinary investors with modest sums to invest had limited options. With even low discount-broker commissions making a big dent into regular investments from typical paychecks, individual stocks were largely out of reach, leaving actively managed mutual funds as the primary alternative.
http://jlne.ws/TlAbVE

Exchanges

CME: No plans to shut grains floor trading
Reuters (via Chicago Tribune)
The CME Group, the biggest operator of U.S. futures exchanges, has no plans to shut open-outcry trading pits but will not change new price settlement rules for grains despite a lawsuit by a group of traders, its CEO said on Wednesday.
http://jlne.ws/TluKpJ

Regulation

Intrade Tells U.S. Users to Shut Accounts After CFTC Sues
Sara Forden, BloombergBusinessweek
Intrade, the online service that lets people bet on events such as elections and weather, asked U.S. customers to close their accounts after regulators sued the website for allegedly offering improper options trading.
http://jlne.ws/TlzRpO

Nadex Commends The CFTC’s Action Against Unregulated Binary Option Platforms
Press Release
As the only CFTC-registered exchange that provides retail traders with direct membership and the opportunity to trade a complete array of binary options on forex, commodity futures, stock index futures and economic events, the North American Derivatives Exchange, Inc. (Nadex) commends the U.S. Commodity Futures Trading Commission (CFTC) for its aggressive action yesterday to protect U.S. traders.
http://jlne.ws/Tlzuvj

Technology

Father of Algorithmic Trading Seeks Speed Controls
Traders Magazine
Interactive Brokers founder Thomas Peterffy started the practice of sending coded instructions from a broker’s computer to an exchange’s terminal, using a typing cyborg. Now, he believes several “layers” of software are needed in the securities industry’s infrastructure to control high-speed trading.
Interactive Brokers founder Thomas Peterffy is an inadvertent provocateur. He started the computerized trading revolution in the 1980s, without that intention.
http://jlne.ws/Tlwsax

Trolling ‘Big Data’ to Find Rogue Traders
Laton McCartney, Traders Magazine
Cataphora of Menlo Park, Calif., is in the in the business of determining insider threat risks such as fraudulent trading, for instance. It uses big data to model employee behavior and shows a contextual relationship between data — email, spreadsheets, instant messages, phone calls, voice mail, tweets, Facebook status updates, expense reports and the like. It builds a digital character for each employee that is mapped against a model of the organization’s normal behavior. The result: deviations from normality are detected.
http://jlne.ws/U2mcCS

NYSE Technologies Open Platform Launches the OpenMAMA Enterprise Edition
Press Release
NYSE Technologies, today announced the launch of the OpenMAMA Enterprise Edition as a part of its Open Platform which also features the Open Market Data Model (OpenMDM) and an upcoming OpenMAMA Enterprise Edition certification program.
The OpenMAMA Enterprise Edition is a commercial offering that is a fully supported, tested and certified distribution of the industry standard Open Source Middleware Agnostic Messaging API (OpenMAMA).
http://jlne.ws/QM0ecL

Strategy

Option Strangles on Volatile Stocks
J.W. Jones, MoneyShow
The recent massive sell off in Apple (AAPL) stock has presented some interesting opportunities for low risk trades.
AAPL is a useful vehicle for an option trading portfolio to use. Why? I cannot overemphasize the importance of trading liquid instruments, and in the current world, very few underlying issues have options with the degree of liquidity routinely available in a wide spectrum of strike prices and expiration dates.
http://jlne.ws/QLYK2q

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