JLN Options: Big Sony options action before Loeb stake raises eyebrows

May 15, 2013

Lead Stories Big Sony options action before Loeb stake raises eyebrows
Doris Frankel, Reuters (via Chicago Tribune)
A surge in option market bets on Sony Corp just before a large hedge fund investor announced a big stake and called for a major restructuring of the company has raised concerns that some traders may have had advance word of the news.
http://jlne.ws/10PDuwh VIX Rises on Tuesday Despite New S&P 500 Record High
Wall Street Sector Selector
VIX managed to increase on a day when Small Business Confidence Index beat expectations and the S&P 500 set new record intraday and closing highs.
http://jlne.ws/10PC84B VIX Moves With Stocks as Fear Gauge Remains Low  
Kaitlyn Kiernan, The Wall Street Journal
The VIX is known as the fear index because it usually rises when stocks fall. But lately stocks and the VIX have been raising eyebrows by moving in the same direction.
That has been the case Tuesday, with the VIX up 1.8% to 12.78, and the Standard & Poor’s 500-stock index gaining 0.8%. Earlier in the day, the VIX was up as much as 5.3%.
http://jlne.ws/10PEr7S Videocast: Low premiums in VIX
optionMONSTER
http://jlne.ws/10qjiPW Subscribers Fear Bloomberg Is Becoming Their Rival
Peter Eavis and Nathaniel Popper, Dealbook
Long thought of as a company that serves the needs of Wall Street firms, Bloomberg L.P. is quietly becoming more like them, moving recently into businesses that have been the domain of the largest banks.
http://jlne.ws/10PKjhq Dow, S&P 500 hit new highs; investors confident in rally
Angela Moon, Reuters
Stocks edged up on Wednesday, with the Dow and S&P 500 hitting new all-time highs as the market’s recent upward momentum persisted, but a steep decline in Apple (AAPL.O) kept gains in check.
http://jlne.ws/10PKyJx Hedge Fund Superstar Says Stocks Are Headed Higher, “Case Closed”
Morgan Housel, The Motley Fool
Hedge fund billionaire David Tepper connects these dots and comes to a firm conclusion: Stocks are going higher. The Dow Jones surged on his comments.
http://jlne.ws/10PE5y7 Stocks Are Jumping, And Traders Are Freaking Out About A Possible ‘Melt-Up’ In Markets
Joe Weisenthal, Business Insider
Something interesting is going on today in the stock market.
Stocks are jumping (up about 1%) and yet the VIX (which is a measure of volatility and fear) is also jumping.
This is odd, because usually the VIX goes up when markets are falling.
What gives?
http://jlne.ws/10PEh0r VelocityShares Announces Licensing of Innovative Hedged Equity Indices
Pymnts.com
VelocityShares is pleased to announce the licensing of the VelocityShares Volatility Hedged Large Cap Index and the VelocityShares Tail Risk Hedged Large Cap Index. These indices represent the next frontier in hedged equity investing. The indices have been licensed to ALPS Advisors, Inc., a leader in the Exchange Traded Funds (ETF) industry.
http://jlne.ws/10PJ7dY

Exchanges

NYSE Euronext Announces Date for Second Quarter 2013 Earnings Release and Conference Call
Press Release (NYSE)
NYSE Euronext (NYX) will announce earnings for the second quarter 2013 before the market opens on Tuesday, July 30, 2013.  A news release will be issued at approximately 2:30 a.m. (New York) / 8:30 a.m. (Paris) and a conference call with remarks by NYSE Euronext senior management will begin at 8:00 a.m. (New York) / 2:00 p.m. (Paris).  A presentation will be referenced during the call and available on our website at http://www.nyseeuronext.com/ir.
A live audio webcast of the conference call will be available on the Investor Relations section of NYSE Euronext’s website, http://www.nyseeuronext.com/ir.  Those wishing to listen to the live conference via telephone should dial-in at least 10 minutes before the call begins.
http://jlne.ws/10PJAwQ

Regulation

Asset Managers and Hedge Funds Face Swaps Clearing Deadline  
Ivy Schmerken, Advanced Trading
Buy side firms need to finalize selections of CCP and FCMs as well as onboard clients and test systems by June 10 deadline, according to Woodbine Associates’ whitepaper.
http://jlne.ws/10PDaxz CFTC Said to Review Wall Street Banks for Off-Exchange Trades
Silla Brush & Christine Harper, Bloomberg
The top U.S. derivatives regulator is seeking documents from Wall Street banks about trades that combine features of swaps and futures since the Dodd-Frank Act became law, according to two people briefed on the matter.
http://jlne.ws/10PFyV9 10-Second Rule Adopted for Reporting Transactions
Tom Steinert-Threlkeld, Traders Magazine
The Securities and Exchange Commission has approved the Financial Industry Regulatory Authority’s proposal to require brokers to report details of equities transactions within 10 seconds of execution.
The rule has been 30 seconds. Some brokers had objected that a 10-second rule would not allow enough time to physically type and send in reports for transactions that were handled by hand.
http://jlne.ws/10PCvMI
** And here I thought the 10-second rule was for food dropped on the floor (or is that the 3-second rule?). -JB

Technology

Trading Technologies to Connect to NASDAQ OMX’s New NLX Exchange
Press Release (TT)
Trading Technologies International, Inc. (TT) announced today that TT will connect its X_TRADER platform and related products to NASDAQ OMX NLX (NLX), a new London-based derivatives trading market.
NLX will initially list European short-term interest rate (STIR) and long-term interest rate (LTIR) euro- and sterling-based futures products. All instruments will clear through LCH.Clearnet,providing optimal initial margin efficiencies for market participants who will have the unique ability to portfolio margin both STIRs and LTIRs in a single clearing house.
http://jlne.ws/14310ok

People

SEC Eyes Charles Schwab Exec For Top Post  
Andrew Ackerman, The Wall Street Journal
Securities and Exchange Commission Chairman Mary Jo White is eyeing a Charles Schwab Corp. executive for a top post overseeing trading firms and stock exchanges, according to a person familiar with the talks.
Ms. White is considering tapping Jeff Brown, who runs Schwab’s Washington office, to potentially head the agency’s trading and markets division, this person said.
http://jlne.ws/12Buicf

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