Ed Boyle to Join BOX as SVP in January
John Lothian News has learned that senior derivatives industry executive Ed Boyle will be joining The Boston Options Exchange (BOX) as a senior vice president of business development and strategy. Boyle, the former head of NYSE’s Arca exchange and more recently an executive with GETCO, has been acting as a consultant for BOX for the last month. Last month, Boyle was named to the Advisory Committee of John J. Lothian & Company, Inc. Additionally, he serves on the advisory board of OptionsCity Software, Inc. Background
He was tabbed in December 2010 to manage GETCO’s relationships with exchanges and trading platforms, starting in January 2011. Boyle was in charge of managing the firm’s relationships to more than 50 exchanges and platforms on which GETCO trades and left the firm in June of 2012. In September 2007, Boyle joined NYSE Euronext and served as executive vice president. There, he was responsible for the strategic development, market structure and technology platforms of NYSE Euronext’s two U.S. options exchanges, NYSE Arca options and NYSE Amex options and was on the board of directors of the Options Clearing Corporation. Before joining NYSE Euronext, Boyle was vice president and director of business development, equity derivatives at TD Securities. He was previously managing director for business development at LETCO Trading and a partner at Platinum Trading. He began his career in the securities business in 1982 and became a member of the CBOE in 1985, starting a private brokerage firm he operated until 1990. From 1990 to 1998 he was president of Boyle Securities, where he managed operations and trading. From 1998 to 1999, Boyle was a principle and trader with Platinum Trading LLC.. From 1999 to 2002, he was managing director, business development of the LETCO Trading Companies, responsible for client relationship management and order-flow. ~John J. Lothian
Why the ‘VIX of VIX’ is at Historical Lows
Adam Warner, Schaeffer’s Research
I’m talking about the “VIX of VIX” (VVIX – 78.59), the index of the implied volatility of CBOE Market Volatility Index (VIX – 15.87) options. That’s right, it uses the VIX methodology and applies it to options on the VIX itself. Since virtually the entire VIX order flow consists of calls, the VVIX handily indexes the premiums investors are paying for those calls.
http://jlne.ws/WE1ueQ Little Ado About the Vix
Sam Mamudi, Barron’s
It’s worth remembering that amid all the sky-is-falling talk surrounding the fiscal negotiations in Washington, D.C., investors don’t seem to be expecting a market panic in the near future.
Take a look what futures on the CBOE Market Volatility index (VIX), more commonly known as the Vix, have done in the past six months:
http://jlne.ws/11rJSbl When All the World’s a Fiscal Cliff
Nothing will change until Washington takes action on taxes and spending–and maybe Steve Cohen, too.
Steven M. Sears, Barron’s
When the stock market is range-bound, and the conversational framework grows repetitive, a line from a Violent Femmes song always comes to mind: “Third verse, same as the first.”
http://jlne.ws/TBKFDM Don’t Fall for the Fiscal Cliff Hype
Ed Elfenbein, InvestorPlace
The threat from the Fiscal Cliff is greatly, hugely and fantastically exaggerated. It’s almost reached comical levels. The behavior at CNBC in particular has been reprehensible. The network is simultaneously over-hyping the threat while presenting themselves as the saviors. Folks, there’s nothing to worry about.
** “OMG! The Fiscal Cliff!!” (or) “Meh…the fiscal cliff.” Seeing both types of reporting. CNBC on over my shoulder has a countdown clock on that gives the feeling it is the time left till the end of days. –JB Execution and payment models for European equities to undergo change in 2013, says Tabb
The impact of regulation on liquidity and reduced order flows remain top priorities for over 75 per cent of the European head traders at buy-side firms currently managing an aggregate EUR14trn in assets.
http://jlne.ws/11rJ3PM Hounding of Intrade a cause for regret
Jonathan Davis – FT.com
Market watchers have reason to be disappointed by last week’s news that Intrade, a popular online betting exchange, is to close the accounts of all its US-based customers. The announcement follows a decision by the Commodity Futures Trading Commission to file a complaint against the company that runs the site, alleging that it has illegally been operating an unregulated options market. Non-US citizens can however continue to use the site, which offers punters the chance to place bets on a variety of political and economic outcomes.
** It is disappointing but seems to me the CFTC was merely being consistent given its refusal to grant other US exchanges the ability to offer the same products. –JB What has gone wrong with hedge funds?
Allan Roth, MoneyWatch
The $2 trillion hedge fund industry has taken quite a battering of late. According to HedgeFundResearch.com, the average hedge fund is up only 4.5 percent year to date through October.
ExchangesCFE To Launch S&P 500 Variance Futures On December 10
CBOE Futures Exchange, LLC (CFE) announced today that it plans to launch trading in S&P 500 Variance futures on Monday, December 10.
The S&P 500 Variance futures contract, like over-the-counter (OTC) variance swaps, allows users to trade the difference between the implied and realized variance of the S&P 500 Index. CFE’s variance futures contract will offer the same quoting conventions and economic performance of OTC variance swaps and will provide the advantages of exchange-traded contracts — transparency, price discovery and counterparty clearing guarantees.
http://jlne.ws/WE2lfy CME Group Completes Acquisition of Kansas City Board of Trade
CME Group, the world’s leading and most diverse derivatives marketplace, today announced it has completed its acquisition of the Kansas City Board of Trade (KCBT), the leading futures market for hard red winter (HRW) wheat. The completion of the acquisition will provide both CME Group and KCBT customers with greater capital efficiencies, new trading opportunities and additional products to manage their global wheat price risk.
http://jlne.ws/WE5BHP Exchange Operator CME Group Admits Error
Associated Press (via The Motley Fool)
CME Group (NASDAQ: CME ) , which owns and operates options and futures exchanges in New York and Chicago, on Friday acknowledged an error in a report about wheat deliveries a day earlier and said it will cover traders’ losses.
http://jlne.ws/WE57Bz NASDAQ OMX Launches Global Index Family
The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ), parent of the world’s first electronic stock market, today announced the launch of the NASDAQ Global Index Family – an extension of NASDAQ OMX’s growth as an innovative global index provider.
The NASDAQ Global Index Family represents more than 98% of the global equity investable marketplace and will result in the development of 24,000 indexes.
http://jlne.ws/WE6wrK Montreal Exchange Implements Bulk Quote Management Functionality on its Equity, ETF, Currency and Index Options
Montreal Exchange (MX) announced it will implement a Bulk Quote Management (BQM) functionality for the benefit of equity, exchange traded fund, currency and index options beginning today, in a three-tiered approach. The BQM functionality will enhance the Bourse’s Bulk Quoting Participants’ (BQPs) flexibility in establishing risk control parameters to better manage their quotations and related risk.
(via email) REGULATIONS Regulation emerges as market’s greatest fear – The TRADE Poll
Anish Puaar, The Trade
More than half of market participants believe impending regulatory change in the US and Europe is the main driver behind efforts to improve risk and compliance monitoring, according to the latest poll on theTRADEnews.com.
http://jlne.ws/WE2Aar Wall Street finds a foreign detour around U.S. derivatives rules
Rachel Armstrong, Reuters
Wall Street banks are looking to help offshore clients sidestep new U.S. rules designed to safeguard the world’s $640 trillion over-the-counter derivatives market, taking advantage of an exemption that risks undermining U.S. regulators’ efforts.