JLN Options: Bets on More Volatility Ease As Summer Nears

May 29, 2013

Commentary & Insight

Stephanie Hammer

Stephanie Hammer Speaks About the New Mindset for Financial Technology
MarketsWiki.tv

Stephanie Hammer talks about some of the key themes and takeaways in putting together her new book, “Architects of Electronic Trading: Technology Leaders Who Are Shaping Today’s Financial Markets.” In it, Hammer interviews 15 financial industry professionals across the spectrum of the trading space in a Q&A format, exploring topics such as transformational technology, affordable desktop supercomputing, cloud computing and microwave data technology. She also discusses how technology is being implemented at top trading firms today, along with how technologists are being integrated into the trading and business decisions made at trading firms today.

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Lead Stories

Bets on More Volatility Ease As Summer Nears
Kaitlyn Kiernan, The Wall Street Journal
Options traders are betting stock-market swings will be muted this summer.
Coming back from the Memorial Day holiday, call options on the Chicago Board Options Exchange’s Volatility Index were trading at just 65% of the daily average over the past month, according to options-data firm Trade Alert. Calls give the holder the right to buy a contract at a certain price, and as such are bullish bets on the index’s direction.
http://jlne.ws/15jiX28

Nasdaq to pay $10 million to settle SEC charges from Facebook snafu
Sarah N. Lynch, Reuters
Nasdaq OMX on Wednesday agreed to pay $10 million, the largest penalty ever levied against a stock exchange, to settle civil charges stemming from mistakes made during Facebook’s initial public offering last year, U.S. securities regulators said on Wednesday.
http://jlne.ws/19mIoDe

VIX Makes Big Jump Despite Record-High Close for Dow
Wall Street Sector Selector
Although the Dow Jones Industrial Average reached a new record high closing level, the VIX jumped by 3.5 percent.
http://jlne.ws/19mKG53

Why The VIX Is No Market Indicator Right Now
Nico Inberg, Seeking Alpha
The plunge on the Japanese stock market last week did not effect the VIX index. Why is the American stock market almost immune to these kinds of movements elsewhere?
http://jlne.ws/19mK8MD

Economic woes and regulation add to VA hedging challenge
Clive Davidson, Risk Magazine
Uncertain global economic conditions mean that consumer demand for variable annuity products remains high. Yet these same economic conditions make the hedging of the embedded guarantees more challenging, while the steps taken by regulators to constrain the risks of derivatives have brought additional layers of complexity to the hedging process. Insurers, as a result, are becoming more sophisticated in how they manage their exposures.
http://jlne.ws/1189RSy

Emerging Stocks Decline to One-Month Low as Turkish Yields Surge
Maria Levitov and Julia Leite, BloombergBusinessweek
The iShares MSCI Emerging Markets Index exchange-traded fund retreated 1.2 percent to $42.01. The Chicago Board Options Exchange Emerging Markets ETF Volatility Index, a measure of options prices on the fund and expectations of price swings, surged 7.6 percent to 21.69.
http://jlne.ws/15atayl

Exchanges

NASDAQ OMX NLX & LCH.Clearnet approved to launch new market
AutomatedTrader
NASDAQ OMX NLX, the new London derivatives market, and LCH.Clearnet have received the necessary regulatory approvals to launch the NLX market on Friday 31st May.
http://jlne.ws/19mJleL

Exchanges seek to bridge derivatives divide
Anish Puaar, Financial News
The world’s exchanges are among the biggest winners to emerge from the G20’s post-crisis reform programme, which is pushing many over-the-counter transactions onto public platforms. But one issue has put them on the back foot.
http://jlne.ws/1aA6J6h

CME Group Announces Treasury Futures Trading Volume Record
Press Release (CME Group)
CME Group’s Treasury complex also experienced record volumes yesterday in the 10-Year U.S. Treasury Note futures (4,216,687), the 5-year U.S. Treasury Note futures and options (2,994,162), and the 2-Year U.S. Treasury Note futures and options (1,929,500).
http://jlne.ws/19mMPha

CME Group hires firms to explore sale of NYMEX building
Tom Polansek, Reuters
CME Group Inc (CME.O) said on Wednesday it had hired firms to explore the sale of the New York Mercantile Exchange building, home to its energy trading floor.
http://jlne.ws/19mJ4Zl

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