JLN Options: Corzine avoids lifetime futures ban, for now -regulator

Feb 22, 2013

Lead Stories Corzine avoids lifetime futures ban, for now -regulator
Tom Polansek, Reuters
A key U.S futures-market regulator said on Thursday it will block Jon Corzine, the former chief executive of failed broker MF Global, from the industry unless he clears an investigation into his fitness as a participant.
http://jlne.ws/YI2kJl 
**Nothing to see here.  Move along. –JB Hybrid Structured Note Sales Rise as Volatility Falls to Low
Kevin Dugan, Bloomberg
U.S. banks sold $271.9 million of structured notes that are tied to multiple types of assets in February, the most in almost two years, as volatility fell to its lowest level since 2007.
http://jlne.ws/YIbi9y SPX Weeklys – Record Volume Day; To Be Discussed at RMC on March 4th
Matt Moran, CBOE
Yesterday (Feb. 21st) was an all-time record volume day for weekly options on the S&P 500 Index — 391,856 SPX Weekly options were traded.
http://jlne.ws/YIamlD Forex Flash: Options logic teach that currency war does not mean booming volatility – Societe Generale
FXStreet.com
Sebastien Galy of Societe Generale note that the spectre of a currency war raises concern that FX markets will turn more volatile.
http://jlne.ws/13aN6SU Fear index off lows as volatility spikes
Wallace Witkowski, MarketWatch
With volatility rushing back into the stock market, does that mean a correction is nigh?
Recent economic data and a possible scaling back of the Federal Reserve’s quantitative easing measures have investors rethinking their investments and giving new life to measures of volatility.
http://jlne.ws/13aK40R VIX Spikes, Emerging Market Volatility Not So Much
Ben Levisohn, Barron’s
With investors fretting about the end of the Fed’s bond buying and the possibility that China will put the breaks on its economy, its no surprise that volatility around the world has jumped. What is surprising: The amount of risk investors are pricing into equity markets has jumped more in the U.S. than emerging markets.
http://jlne.ws/13aMwVn Goldman Client Made Heinz Trade
Dan Strumpf, The Wall Street Journal
The account that conducted an allegedly suspicious trade ahead of the H.J. Heinz Co. buyout disclosure last week was owned by a “private wealth client” of Goldman Sachs Group Inc. in Switzerland, according to court documents.
http://jlne.ws/VBfJUP The Greatest Trades In Wall Street History
Lisa Mahapatra and Linette Lopez, Business Insider
Every day thousands and thousands of transactions are done between investors around the world, but lets face it, most of them will never be remembered.
For that reason, among others, the trades that do become a part of history have to be incredibly epic.
http://jlne.ws/YieFGb
** This is a fun story and yeah…there is an epic options trade in there. –JB

Exchanges

UBS to Trade Equity Swaps in China in Structured-Product Push
Jun Yang, Bloomberg
UBS AG (UBSN) won regulatory approval in China to trade derivatives involving local equities, paving the way for the bank to offer onshore structured products directly tracking stocks.
Chinese regulators last month decided to allow UBS to trade total return swaps, Thomas Fang, the bank’s managing director for equities derivatives sales for Asia, said in a phone interview.
http://jlne.ws/11ZpscJ ISE elects Hauke Stars to Board of Directors
Press Release (ISE)
The International Securities Exchange (ISE) today announced that Hauke Stars was elected to ISE’s Board of Directors. Mrs. Stars, who was recently named Member of the Executive Board and Chief Information Officer of Deutsche Börse AG, will begin serving her term with the ISE Board of Directors effective immediately.
http://jlne.ws/WZsVm0 (PDF) CME Group Named “Best Futures Exchange” by Markets Media Magazine    
Press Release (PR Newswire)
CME Group today announced the company was named “Best Futures Exchange” by Markets Media’s 2013 Market’s Choice Awards, as voted by peers and customers. The inaugural awards held last night in New York recognized CME Group’s excellence in client service and education, technology design and execution, and diverse and innovative products.
http://jlne.ws/YI80D7 CME Group Statement in response to CFTC Complaint    
Press Release (PR Newswire)
CME Group released the following statement in response to the CFTC’s complaint filed today against NYMEX Holdings:
Each of CME Group’s exchanges, including the New York Mercantile Exchange (NYMEX), places an extremely high priority on preserving the confidentiality of customer information, and we expect our employees to abide by this guiding principal without exception.  For this reason, when we discover that any CME Group employee has acted contrary to this principle we take decisive action to reinforce our values and protect against the disclosure of confidential information.  Our policies and procedures designed to protect against the disclosure of confidential information are sound, and we continue to emphasize the importance of our values with our employees every day.
http://jlne.ws/YI8b1o

Regulation

CME says it will fight CFTC action in court
Lynne Marek, Crain’s Chicago Business
The top U.S. derivatives regulator charged CME Group Inc and two former employees with disclosing non-public information about customer trades, saying it would seek fines and bans from the industry.
CME countered that it will fight the charges in court.
http://jlne.ws/YI32q2 SEC Asks Swiss Regulator for Help in Heinz Probe  
Neil MacLucas, The Wall Street Journal
Switzerland’s market regulator said Friday the U.S. Securities and Exchange Commission has asked for assistance with an investigation of suspicious trading conducted through a Zurich private-wealth account just before last week’s announcement of the takeover of H.J. Heinz Co.
http://jlne.ws/159m8cZ OTC derivatives market failing to take a holistic view of risk
Andy Mellor and Simon Garwood, FX-MM
The incoming OTC derivatives regulations have been introduced by policy makers as a result of the global financial crisis and are principally aimed at reducing the systemic risk associated with the OTC derivatives market. Both the Dodd Frank Act and the European Market Infrastructure Regulation (EMIR) have far reaching implications for the global OTC derivatives industry.
http://jlne.ws/YHXYlA

Strategy

13 ETFs Every Options Trader Must Know
Cory Mitchell, ETF Database
On most days, ETFs are among the most heavily-traded names in the investing world. This is a sure sign that active traders are using ETFs—a transparent, cost-effective way to trade market fluctuations–to gain access to a very wide range of sectors, commodities, countries, indexes, currencies and assets. The options market for ETFs has also been gaining steam.
http://jlne.ws/YHY9gR

EventsWILD About Options in New York
Women In Listed Derivatives invites you to learn about the equity options product  –  what it is and how it works. Hear from women in the derivatives markets and listen to our panelists compare their work experiences in options.
Date/Time
Date(s) – 27 Feb 2013
5:00 PM – 8:00 PM
Location
New York Stock Exchange
RSVP events@womeninlistedderivatives.org
http://jlne.ws/YIfXID

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