JLN Options: CBOE Executive Put on Leave Amid SEC Probe

Mar 8, 2012

Lead Stories

CBOE Executive Put on Leave Amid SEC Probe
BY JACOB BUNGE, WSJ.com
CHICAGO—The largest U.S. options exchange has taken a senior compliance executive off the job in the wake of an investigation by U.S. market regulators into the company’s oversight of traders, according to people familiar with the matter.
CBOE Holdings Inc. disclosed last week that the Securities and Exchange Commission was investigating whether the company properly supervised the activity of firms and traders registered under the exchange’s function as a self-regulatory organization. CBOE runs the Chicago Board Options Exchange as well as other options-, stock- and futures-trading platforms.
http://jlne.ws/Ae9jVj

U.S. Stock Options With Biggest Changes in Implied Volatility
By Bloomberg News – Mar 8, 2012
The following are the U.S. stock options that had the biggest percentage changes in implied volatility from the previous trading day as of 11:30 a.m. in New York.
http://jlne.ws/yxrz6j
Trading Update for iShares Russell 2000 Index (IWM) Posted on 03/07/2012 by Jane Lacave
NEW YORK (AVAFIN) — iShares Russell 2000 Index options contracts experienced a new 3-month record for both call and put contracts where a total of 303,662 call and 741,833 put contracts were traded in the busy trading session. The contract spread yielded a 2.44 put/call ratio.
http://jlne.ws/zLeBUj

EXCHANGES

Mega-deals possible, but not a priority: Nasdaq
By John McCrank
NEW YORK | Wed Mar 7, 2012 (Reuters) – Nasdaq OMX Group (NDAQ.O) said on Wednesday that while it does not believe mega-deals among global exchanges are dead, it is likely to keep its focus on small and mid-sized acquisitions. In the past year, a number of large exchange takeovers have been stopped by regulators, including an $11 billion bid by Nasdaq, along with IntercontinentalExchange Inc (ICE.N), for NYSE Euronext (NYX.N).
“We don’t believe that mega-consolidation is dead,” Lee Shavel, chief financial officer of Nasdaq, said at the Citi 2012 Financial Services Conference.
But due to the regulatory environment, along with uncertainty from an economic and from a markets perspective, Nasdaq, which runs U.S. and Nordic markets, will not likely pursue any large deals in the near-term, he said.
http://jlne.ws/xoZ3tv

NYSE Euronext Statement on Bipartisan Efforts to Create New Businesses and Jobs
Press Release
NEW YORK, Mar 08, 2012 (BUSINESS WIRE) — NYSE Euronext (NYX) applauds today’s overwhelming bipartisan support for a package of bills that will unleash America’s economic growth potential. These bipartisan initiatives, focused on entrepreneurism and innovation, will stimulate new business and job creation in America.
http://jlne.ws/xslNSr

Options on Futures

Crude Options Volatility Falls as Futures Gain on Greek Swap By Barbara Powell, Bloomberg – Mar 7, 2012
Crude oil options volatility retreated from a six-week high as underlying futures rose after more investors agreed to a Greek debt swap, boosting optimism that the European debt crisis will be contained. Implied volatility for at-the-money options expiring in March, a measure of expected price swings in futures and a gauge of options prices, was 28.1 as of 3 p.m., down from 31.2 yesterday.
“We’re getting a little bit rangebound and there was no significant buying today,” said Fred Rigolini, vice president of Paramount Options Inc. in New York.
http://jlne.ws/zesuKN

Technology

Interbank FX Launches Social Trading Platform for Customers
Press Release
PLANTATION, Fla., Mar 8, 2012 (GlobeNewswire via COMTEX) — Interbank FX, a division of TradeStation Forex Inc. and one of the industry’s leading global providers of online forex trading software, has re-introduced IBFXConnect. The platform bridges the gap between social media and the fastest-growing financial market in the world. IBFXConnect allows customers to trade FX alongside traders from around the globe.
http://jlne.ws/xxxocz

Getco expands compliance team
Tim Cave, Financial News 08 Mar 2012
Getco, the influential high-frequency trading firm, has hired a former compliance officer from rival Citadel Asset Management, as it seeks to rebuild its European regulatory team following a series of departures last year. Vipin Sood has been appointed to oversee compliance at Getco Europe’s Automat division – a foreign exchange and derivatives trading specialist it bought in July last year. Sood joined on March 1, according to the FSA register. He most recently worked at asset manager Citadel, and has also had stints at Wachovia, which was bought by Wells Fargo in 2008, and Italian lender Itaú Unibanco. The appointment follows two key departures form Getco’s European compliance team over the last year. Rebecca Deane, who joined the firm from Morgan Stanley in 2008, left in August. She was followed a month later by the departure of Jennifer Boneham, who had joined Getco from UK regulator the Financial Services Authority in 2010.
http://jlne.ws/xwHs6x

Strategy

Trading the Monthly Jobs Data
By STEVEN M. SEARS, Barrons.com
Use options on a S&P 500 exchange-traded fund to position for a sharp move when the employment report is released Friday.
Economic data have a way of trumping the market’s technical indicators. Friday’s employment data released by the U.S. Department of Labor could quickly alleviate overbought or oversold conditions now frequently cited as the stock market’s Achilles’ heel. Investors can wager on the employment report by “straddling” the Standard & Poor’s 500 index.
By buying a put and call with the same strike price and expiration, aggressive investors can position to profit if the S&P 500 moves sharply higher or lower in reaction to Friday’s jobs data. The strategy’s risk is that the market barely budges and the money spent to establish the straddle is lost.
http://jlne.ws/crFOL6

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