JLN Options: Big Hedge Funds Suddenly Bullish

May 21, 2013

Lead Stories Big Hedge Funds Suddenly Bullish  
Steven M. Sears, Barron’s
A tectonic shift in the options market suggests that big money is now chasing the rally higher. Now bears get a discount.
http://jlne.ws/12K47kL Equity options rebound in April
FOW
US market growth has driven the most active April in US equity options history, indicating a possible upturn after a lack-lustre first quarter’s trading writes Jonathan Watkins.
http://jlne.ws/14O5SNZ The VIX: It Could Get Ugly Soon  
Adam Warner, Schaeffer’s Investment Research
Now, there’s no law that says VIX has to move anywhere. Way back before anyone paid attention to VIX — like in the 90s — volatility didn’t fluctuate all that much on a day-to-day basis. No one looked for a signal in every little VIX tweak, probably because there really wasn’t one. So yes, it’s a little odd VIX hasn’t made new lows in two months now, but I’m not sure it’s the biggest deal in the world.
http://jlne.ws/14OeLXK Mini crash fuels calls for market structure overhaul
The Trade
A ‘mini flash crash’ that wiped out the value of a US stock has again suggested US market structure distress, days after a roundtable saw captains of the finance industry agree that regulators should be careful not to interfere with a well-functioning system.
http://jlne.ws/14O6Nhu Fed official urges a slowdown to high-speed trading
Ronald D. Orol, MarketWatch
A paper presented Tuesday by a Federal Reserve official calls for a major market structure change by having trades executed every half-second, instead of the current nonstop steam of trades that exists with today’s high-speed markets.
http://jlne.ws/14O79o7 S&P 500 May Reach 2,100, Goldman Sachs Says
Whitney Kisling, Bloomberg
Goldman Sachs Group Inc. said the U.S. stock-market rally may last at least another 2 1/2 years, sending the Standard & Poor’s 500 Index (SPX) up 26 percent to 2,100.
http://jlne.ws/14OdZKn Videocast: VIX traders target 13 level
optionMONSTER
http://jlne.ws/14OdIad

Exchanges

EU antitrust regulators to rule on ICE, NYSE deal by June 24
Reuter (via Yahoo News)
European antitrust regulators will decide by June 24 whether to clear an $8.2 billion (5.4 billion pounds) takeover bid by IntercontinentalExchange Inc for New York Stock Exchange operator NYSE Euronext .
http://jlne.ws/14O7qrd CME Plans to Cut Board Size  
Jacob Bunge, The Wall Street Journal
The chairman of CME Group Inc. said the exchange operator plans further cuts to a 30-member board that is twice as large as its closest U.S. rivals.
http://jlne.ws/11W3isl CBOE Holdings Files Additional Definitive Materials With Respect To 2013 Annual Meeting
Press Release (CBOE)
CBOE Holdings, Inc. (NASDAQ: CBOE) announced today that the company has filed additional definitive materials with the Securities and Exchange Commission with respect to the company’s 2013 Annual Meeting of Stockholders. In particular, the additional definitive materials note that Douglas H. Shulman has withdrawn his candidacy for election to the company’s Board of Directors at the 2013 Annual Meeting of Stockholders. Mr. Shulman was standing for election as a new director to serve until the 2014 Annual Meeting of Stockholders.
http://jlne.ws/14OcLik OCC Takes Silver at The FCS Portfolio Awards in The Best Annual Report Category
Press Release
OCC announced today that its 2011 annual report took Silver (the only award given) in the Best Annual Report category at the 2013 FCS Portfolio Awards presented by the Financial Communications Society in New York City on May 16, 2013.
http://jlne.ws/14Obp76 Memorial Day Observance
NYSE Arca Equities, NYSE Amex Options, and NYSE Arca Options Traders
n observance of Memorial Day holiday, the New York Stock Exchange, NYSE MKT, NYSE Arca, NYSE Arca Options, NYSE Amex Options, and NYSE Bonds exchanges will be closed Monday May 27, 2013
For more information on holidays, please see NYSE Euronext Holidays & Hours.

Regulation

ICE Joins CME Warning of Splits in Global Derivatives Rules
Silla Brush, Bloomberg
Top executives of the two largest U.S. derivatives exchanges say regulators must take further steps to align Dodd-Frank Act rules with those of foreign counterparts to avoid oversight splits that could harm markets.
http://jlne.ws/14O7Dea Ex-IRS commissioner withdraws bid for CBOE board seat
Samantha Bomkamp, Chicago Tribune
CBOE Holdings Inc. said former IRS Commissioner Douglas H. Shulman has withdrawn his bid for election to the company’s board days before its annual meeting as he prepares to testify before Congress about allegations that the IRS targeted conservative groups with extra scrutiny.
http://jlne.ws/14Odz6I CFTC Said Preparing ISDAfix Probe Talks in Weeks: Credit Markets
Matthew Leising, Bloomberg
Commodity Futures Trading Commission investigators are poring over 1 million e-mails and instant messages as part of their price-manipulation probe of a swaps benchmark that helps determine interest rates on everything from annuities to bonds linked to skyscrapers.
http://jlne.ws/14O8bAz Comment Period for Automated Systems Rule Extended 45 Days
Tom Steinert-Threlkeld, Traders Magazine
The Securities and Exchange Commission has extended the period for commenting on its proposed standard for the maintenance of automated systems used in securities trading by 45 days.
The federal regulator pushed back the due date for all comments on its proposed Regulation Systems Compliance and Integrity to July 8, from May 24.
http://jlne.ws/14O7Vlb RBI puts foot down on put-and-call options in realty sector [India]
MoneyControl
The government’s latest move to legalise put-and-call options will clear the way for many M&A deals in India. But real estate deals that guaranteed an assured return are yet to be approved by the RBI, reports CNBC-TV18’s Gopika Gopakumar.
http://jlne.ws/14OczPZ

Strategy

Call and put options: Enforceable tools with PE investors
Lalit Kumar, VCCircle
Once put and call options are made valid, they can be used by PE investors to structure their investments.
http://jlne.ws/14OcnAv ETFs? Here’s What You Should Know
Jeff Brown, CNBC
Investing in stocks and bonds has become easier and easier over the years. First, there were mutual funds, then index funds. Now, exchange-traded funds are all the rage.
http://jlne.ws/14OcUCr

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