David Prosperi retires from OCC
Securities Finance Times
Options Clearing Corporation’s (OCC) David Prosperi is set to retire as senior vice president, communications, as of 13 November, after just under six years with the equity derivatives clearinghouse. He will be replaced by Michael Shore who joined OCC in January. Shore is leading the communications function and reporting to Julie Bauer, who oversees the entire OCC external relations team.
*****JJL: I interviewed David Prosperi over Zoom about his career and we will have this interview next week. An interesting note, he was with President Reagan the day Reagan was shot in Washington, DC in 1981. More details are in the interview. Stay tuned.
Bitcoin Options Investors Are Starting to Hedge Against Potential Price Pullback
Omkar Godbole – Coindesk
Bitcoin’s options market data shows investors are beginning to position for a temporary retreat from the cryptocurrency’s steep bull run. The one-month implied volatility, which is influenced by the demand for call and put options, jumped from roughly 55% to a four-month high of 70.5% in the past two days, suggesting increased expectations for price turbulence over the next four weeks.
Exchanges and Clearing
MIAX Options Exchanges – Temporarily Halted Symbols ZLAB and SLP
MIAX Options, MIAX PEARL Options and MIAX Emerald Options have temporarily halted symbols SLP and ZLAB as of 10:27 AM. They will resume trading at 10:50 AM.
MIAX Exchange Group – Options Markets – Corporate Action Alert: Retrophin, Inc. (RTRX) Name and Symbol Change to Travere Therapeutics, Inc. (TVTX)
Retrophin, Inc. (RTRX) will change its name and symbol to Travere Therapeutics, Inc. (TVTX) effective on Thursday, November 19, 2020. All GTC orders resting on the MIAX order books in RTRX will be canceled at the close of business on Wednesday, November 18, 2020.
CME Globex Notices: November 16, 2020
CME STP Notices: November 19, 2020
Regulation & Enforcement
NYSE Arca Fines Interactive Brokers $237K for Alleged Reporting Violation
Arnab Shome – Finance Magnates
Electronic US trading exchange, NYSE Arca has slapped Interactive Brokers with a fine of $237,500 for alleged violations in trade reporting. The brokerage company has already consented with the censure and the fine but did not admit or deny the allegations. “Interactive Brokers hereby accepts and consents, without admitting or denying the findings, and solely for the purposes of this proceeding and other proceedings brought by or on behalf of NYSE Arca, or to which NYSE Arca is a party,” Interactive Brokers stated on the acceptance letter.
Market infrastructure in flux – use of market models (off & on-book) is changing
Electronification and the need for increased transparency and regulatory compliance are driving a shift in market infrastructure. Currently both on-book (CLOB) and off-book (selective RFQ platforms, call around and OTC) models co-exist but their roles are changing as these industry trends alter how market participants use and engage with these market models. Randolf Roth, Member of the Board at Eurex, explores the evolution of this space and specifically how market participants can harness tools and technology to strike a balance between risk and return when trading via both market models.
Don’t Let Low Volatility Lull You Into a False Sense of Security
Steven M. Sears – Barron’s
Murky economic, political, and medical crosscurrents deprive us of meaningful insights beyond a few weeks, and yet an often misunderstood barometer of investor sentiment is seemingly flashing the all-clear sign for the stock market. The Cboe Volatility Index, or VIX, has declined some 44% since late October. With VIX around 24, just above the long-term average of 19, many investors are positioning for volatility to fall even lower—perhaps commencing a new era of low volatility.
Asia Derivatives Conference
Join us virtually in December!
1 December 2020 – 3 December 2020 • 9:00 AM – 3:00 PM SGT Daily
Our annual Asia Derivatives Conference provides unique opportunities for the cleared derivatives community to build an understanding of how global forces and regional trends and issues are shaping Asia-Pacific markets. Register now and join us virtually, 1-3 December, to gain insights into what’s on the horizon for the Asia-Pacific region.
(Podcast) OBC 113: Post-Election Mail Call Palooza
Options Boot Camp – Options Insider Network