Brokers Face Off Against Exchanges at Today’s Senate Hearing
Peter Chapman, Traders Magazine
Representatives from two exchanges and two broker-dealers will likely air their differences today during a hearing hosted by the Senate Banking Committee.
http://jlne.ws/12AhROv Derivatives traders optimistic for 2013, according to Risk.net poll
The majority of respondents to a Risk.net poll expect to make more money from derivatives trading next year, despite the onset of new regulations in 2013 and continuing problems in the eurozone.
**Nice to know that “things can’t get much worse than 2012.” — SR ‘Un-Volatility’ Funds Hit Fresh Lifetime Highs
Brendan Conway, Barron’s
There’s an incredibly wide array of, well, exchange-traded stuff out there. For instance: There are two unusually complex investments that are up 200% year-to-date, and can be expected to keep rising higher barring a market selloff, or a product malfunction.
http://jlne.ws/12ybHhK In a World Full of Risk, Why Are Investors So Calm?
Roben Farzad, BloombergBusinessweek
The economy and markets of 2012 sport nearly as many risk factors as a Cialis ad: Four years into full monetary tilt, does the Federal Reserve much know what it’s doing, and should we grow to expect QE6? Can a recessionary, politically scattershot Europe apply a cordon sanitaire around the still very real threat of contagion?
http://jlne.ws/12AiXcT Rosenthal: Of options, change, exchanges and exits
Phil Rosenthal, Chicago Tribune
The hall outside CBOE Chairman and Chief Executive William Brodsky’s office is lined with his personal collection of photos and other artwork of various trading exchanges around the world.
**Mr. Brodsky is not afraid of change. — SR Knight Takes Higher Price in Getco Sacrifices Cash Certainty
Stephanie Ruhle, Zachary R. Mider & Nina Mehta, Bloomberg
Knight Capital Group Inc. (KCG)’s decision to pursue a takeover by Getco LLC gives its shareholders, mostly Wall Street firms, an opportunity for stock appreciation while surrendering the certainty of cash.
http://jlne.ws/R3Wp1J Exchanges Renew Push Against Dark Pools
Jacob Bunge, The Wall Street Journal
The world’s largest stock exchanges are intensifying calls for tighter oversight of rival private trading platforms they say are distorting global equity markets.
They want U.S. and European regulators to make so-called dark pools–which privately match up stock trades away from public markets–subject to the same standards as regulated exchanges.
http://jlne.ws/STx2BA ‘Santa Claus Rally’ May Fly off the Fiscal Cliff
John Nyaradi, InvestorPlace
VIX ETFs are looking more bullish by the day, as the VIX Index rose 6.92% last week for the week to close at 17.00 while the iPath S&P 500 VIX Short Term Futures ETN (NYSEARCA:VXX) gained 3.3% for the week.
http://jlne.ws/REbOY3 How Special Dividends Can Sink Options Investors
Dan Caplinger, The Motley Fool
With the fiscal cliff looming, special dividends have never been more popular. Dozens of companies are making substantial payouts before the end of the year in order to avoid any possibility that current low rates of 15% on qualified dividends won’t be available in 2013 and beyond, and in general, shares of companies declaring those dividends have risen as investors applauded the moves.
http://jlne.ws/12AgG1i Tail Risk Strategy Report
RegulationWall Street workers prepare to adopt Dodd-Frank Act derivatives regulations
While Wall Street has spent the last few years lobbying Washington in an effort to loosen the derivatives regulations created by the Dodd-Frank Act that was passed in 2010, they will soon need to brace for the next phase.
http://jlne.ws/12AhK5n SEC credit rating agency study is ‘regulatory threat’ to raters
Ronald D. Orol, MarketWatch
The threat to credit rating agencies is real.
At least that’s the opinion of Jaret Seiberg, analyst at Guggenheim Securities, after the Securities and Exchange Commission late Tuesday released a study on credit rater compensation models. The study didn’t make a particular recommendation, but called for an agency roundtable to discuss various alternative models.
TechnologyLivevol Launches Next Generation Trading Platform – Livevol X
Livevol, Inc., the leading provider of equity options technologies and services, announced the launch of Livevol X, its next generation, all-in-one trading platform that will be the new standard in trading technology. The new platform combines trade execution capabilities with Livevol’s intuitive user interface with a robust suite of industry-leading tools for data and analytics, trade visualization, and risk analyses.
http://jlne.ws/TyINd5 High-speed trading: How fast is too fast?
Suzanne Miller, The Deal Pipeline
Has high-speed trading killed the likelihood of achieving a level playing field among retail and institutional investors in the U.S. stock market? Will regulators be able to tame technology trading glitches that have hurt the market during the past year?
** Faster than light would probably be too fast since your order would arrive before you placed it (would make for some interesting trading strategies). –JB NYSE Amex Options Traders and Tech Vendors: Certification Environment Data Center Migration
Press Release (via email)
As previously announced, NYSE Euronext (NYX) is in the process of migrating our NYSE Arca Equities and NYSE Options Certification Testing (CERT) environment to a new data center in Chicago. This change will require firms to use new IP addresses to access the CERT environment as reflected in the table below. Connectivity testing for these Gateways is currently available, however firms must submit their source IP information to the Firm Testing team for firewall provisioning prior to being able to ping these new servers. We will not accept IP ranges for the new Certification environment, so please limit your source IPs to only those servers you will be using to test. The current schedule is to fully migrate the CERT environment by January 21, 2013, at which time the old CERT environment will be decommissioned.
StrategyThe Foundation Of Options Trading
Andrew Crowder, Seeking Alpha
Before I get to some market info, I want to go over a few options trading basics.
The first, and most important, step in options trading is to create a watchlist of highly liquid, optionable stocks or ETFs. This will be the foundation of your all your trading endeavors.