Lead Stories

Brodsky to step down as CEO of CBOE; Ed Tilly named next CEO
Press Release
CBOE Holdings (NASDAQ: CBOE) today announced that William J. Brodsky, Chairman and CEO, has advised the Board that he will step down as CEO effective following the 2013 Annual Meeting in May 2013. Following the annual meeting, it is anticipated that he will assume the role of Executive Chairman of the Board.
http://jlne.ws/W67huS
**  Brodsky’s been at the helm of the CBOE for 16 years.  All of a sudden I feel old as it doesn’t seem like that long. –JB

Brodsky to step down as CEO at CBOE
Crain’s Chicago Business
CBOE Holdings Inc. Chairman and CEO William Brodsky plans to resign as CEO in May and hand those duties to President and Chief Operating Officer Edward Tilly, the Chicago-based operator of the largest U.S. options exchange said this morning. 
http://jlne.ws/UTIiw3

Investors Paying More for Volatility Protection Than Ever Before
Brendan Conway, Barron’s
A “bull market in fear” is how Christopher Cole, managing partner and founder of Artemis Capital Management, describes the extreme state of demand for exchange-traded volatility exposure in today’s nervous market. Cole says that investors who resort to decades-old options hedging strategies usually get better results.
http://jlne.ws/W69DtS
** Sometimes the old options are the best options. — SR

BoAML Helps Options Traders Pay for Research via CCAs
John D’Antona Jr., Traders Magazine
Bank of America Merrill Lynch will now offer institutional options traders the ability to pay for research and other services through client commission arrangements–CCAs.
http://jlne.ws/W67FcL

The Biggest Risk on Wall Street – Still Rogue Traders, Not Rogue Computers 
Andrew Waxman, Advanced Trading
As we digest the latest episode, this time Rochdale Securities, and before that UBS, it is worthwhile looking again at what investment banks can do to prevent and/or mitigate this threat. Specific risk mitigation activities are only one part of the solution, which is nothing less than a shift in company culture and objectives, and technology must play a vital role in that.
http://jlne.ws/1288oP1
**  It is important to remember computers are operated by people. Computers do not make mistakes; people who run them do.  –JB

In Investors’ Hedge-Fund Flows, Big Performers Are Still Winning
Brendan Conway, Barron’s
Investors may have pulled nearly $11 billion from hedge funds during the month of October. But dig just a tiny bit deeper into the numbers and you’ll see investors are also being choosy. Namely, they’re buying high performers and selling everybody else.
http://jlne.ws/W69OFq

U.S. CFTC to Face Critics of Swaps Market Rules
Silla Brush, Bloomberg
GFI Group Inc. (GFIG), a New York-based interdealer broker, and a coalition of trading platforms including one operated by Bloomberg LP told a U.S. House Financial Services subcommittee in testimony for a hearing today that CFTC rules are hurting the swaps market and encouraging a shift to futures. The companies say futures face fewer customer protections and less stringent margin rules.
http://jlne.ws/VAqVNo

U.S. Probe of SAC Trading Said to Be Linked to 2010 Case
Joshua Gallu & David Glovin, Bloomberg
A U.S. investigation of possible insider trading at SAC Capital Advisors LP, the $14 billion hedge fund run by Steven A. Cohen, is linked to a 2010 regulatory lawsuit over allegedly illegal trades in InterMune Inc. (ITMN), according to a person with knowledge of the matter…
The investor bought InterMune options before a European Union regulatory panel urged approval of the company’s drug Esbriet to treat a fatal lung disease, the person said, declining to elaborate.
http://jlne.ws/W6eET6

Asian Hedge Funds Reverse Slow Start to Beat World
Tomoko Yamazaki & Bei Hu, Bloomberg
Asian hedge funds are set to outperform the world in 2012, gaining for the fourth straight month in November as the U.S. Federal Reserve’s low-rate policies boosted credit and stock investments.
http://jlne.ws/QVq8K3

TradeStation Announces Launch of Technical Analysis and Trading Blog
Press Release
TradeStation, a Monex Group company (TSE:8698) and an award-winning broker-dealer and futures commission merchant, today announced the launch of its new Technical Analysis and Trading Blog, a new online resource designed to keep traders up to date with market trends and action.
http://jlne.ws/W6dgQk

NASDAQ OMX to Acquire Thomson Reuters Investor Relations, Public Relations and Multimedia Solutions Businesses
Press Release
The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today announced that it has entered into an agreement with Thomson Reuters to acquire the Investor Relations, Public Relations and Multimedia Solutions businesses, which provide insight, analytics and communications solutions to more than 7,000 clients worldwide.
http://jlne.ws/QVpE6x

Regulation

Changes to swap costs prompt alarm
Michael Mackenzie and Stephen Foley, Financial Times
Off the peg or custom made? For some derivatives users, the choice could soon narrow sharply.
There are growing fears that specially-tailored swaps will become prohibitively expensive under new rules coming into effect from next year. Regulators want most users to pick only from the racks of standardised products.
http://jlne.ws/QVpQTr

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