JLN Options: CBOE sues ISE for $525 mln over options trading system

Nov 14, 2012

Lead Stories

CBOE sues ISE for $525 mln over options trading system
Jonathan Stempel, Reuters
The Chicago Board Options Exchange has sued International Securities Exchange LLC for at least $525 million, accusing its rival of infringing three patents related to an automated options trading system.
http://jlne.ws/SZKS2k

***CBOE released a statement containing this quote from Chairman and CEO William J. Brodsky: “CBOE is and always has been the industry’s leading innovator. As such, we are confident that the facts will show that ISE has and continues to improperly profit by infringing on CBOE’s innovative patents.”  — SR
For more on this story, see the John Lothian News web site: http://jlne.ws/TYrUtM  

New NYSE glitch puts pressure on SEC to act
Bruce Love, The Trade
Yet another interruption to trading at a major US exchange Monday has added more impetus to regulators to review market structure rules and assess the viability of continuing self-regulation of bourses.
A technical problem with a server was blamed for the halting of trading in 216 companies on the New York Stock Exchange (NYSE) for most of Monday.
http://jlne.ws/UDfoSN

“Fight Club” of corrupt analysts cited at insider trial
Basil Katz, Reuters
Two former hedge fund managers reaped a total of $70.8 million (44.6 million pounds) in illegal profits by tapping a “corrupt network” of Wall Street analysts, a U.S. prosecutor said at the start of an insider trading trial on Tuesday.
http://jlne.ws/UDfzgM

***You know the drill: “The first rule of insider trading…”  –SR

Debate Over Market Data Fees to Resurface in Court Case
Ivy Schmerken, Advanced Trading
Are exchanges charging more money for market data than they ought to? And are these real-time market data fees subject to competition? These are potent questions that could surface today in a long-running legal case on market data fees.
A long-running legal case on market data fees is scheduled to hear closing arguments today, and it may force large exchange operators to reveal their costs for producing market data, according to a Reuters story.
http://jlne.ws/UDfIko

VIX Hits Snooze Button…Again
Steven Russolillo, The Wall Street Journal
The VIX keeps hitting the snooze button. At this rate, there’s no telling when it’s going to wake up.
The CBOE’s volatility index is down 2.3% to 16.30 — piling on to yesterday’s 10% drop — amid yet another uninspiring session for the stock market.
http://jlne.ws/UDgj5H

***I didn’t know I had so much in common with the VIX.

Exchanges

CME gets more time in U.S. compliance spat with regulator
Douwe Miedema, Thomson Reuters
 U.S. exchange operator CME Group has been granted more time to report trading data by the Commodity Futures Trading Commission after it sued the regulator in a spat over compliance that has split the derivatives industry.
The CME is suing the markets watchdog, seeking to prevent the enforcement of rules that require it to report swaps transaction data to a third party and which were due to go into effect on Tuesday.
http://jlne.ws/UDfXfl

NYSE Euronext trading volumes hit by Hurricane Sandy
Hedgeweek
The industry decision to close the US markets for two trading days due to Hurricane Sandy resulted in a nine per cent decrease in the number of trading days in October 2012 for NYSE Euronext’s US cash equity and equity options markets.
The closure of these markets also impacted trading on NYSE Euronext’s European derivatives and European cash trading venues, which remained open.
http://jlne.ws/UDg7mY

CBOE, C2, CFE, and CBSX Thanksgiving Holiday Trading Schedule
CBOE Holdings, Inc. (NASDAQ: CBOE) announced the following trading schedule for Chicago Board Options Exchange (CBOE), CBOE Futures Exchange (CFE), C2 Options Exchange (C2) and CBOE Stock Exchange (CBSX) in observance of the Thanksgiving holiday:

Wednesday, November 21:   
CBOE, C2, CFE and CBSX will have regular trading hours for all products.

Thursday, November 22:   
CBOE, C2, CFE and CBSX will be closed.

Friday, November 23:
– CBOE, C2 and CBSX Equities products will close at 12:00 p.m. CT.
– ETFs and Indices that normally close at 3:00 p.m. will close at noon.
– ETFs and Indices that normally close at 3:15 p.m. will close at 12:15.
– CFE futures products that normally close at 3:00 p.m. will close at 12:00 p.m.  Futures products that normally close at 3:15 p.m. will close at 12:15 p.m. and Trade at Settlement (TAS) products will close at 12:12 p.m.

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