European Trading Volumes Rise Before Last Options Expiry
Nandini Sukumar & Adria Cimino, Bloomberg
European trading volumes surged as investors prepared for the last options expiry of 2012 amid optimism that U.S. President Barack Obama and Republicans will agree on a budget.
** Where did the year go? –JB Credit Suisse To Reverse-Split TVIX
Cinthia Murphy, IndexUniverse
Credit Suisse, the Switzerland-based investment bank and asset manager, will serve up a 1-for-10 reverse split on the VelocityShares Daily 2x VIX Short Term ETN (NYSEArca: TVIX) on Dec. 21, after the notes lost almost all their value in the past year.
http://jlne.ws/R3w9Ex NYSE executive says exchanges inching closer to “kill switch”
Sarah N. Lynch, Reuters
U.S. regulators and exchanges are getting closer to a framework for a “kill switch” that could be used to shut down trading before software glitches get out of control and wreak havoc on markets, a top exchange official said on Tuesday.
** Can’t help but picture a big red button on Duncan Niederauer’s desk. –JB Knight Capital’s board said to be split on rival buyout offers
John McCrank, Reuters
Knight Capital Group’s (KCG.N) board was split between two competing offers for the firm after a meeting on Monday where suitors Getco Holding Company LLC and Virtu Financial LLC presented their sweetened bids to Knight’s directors, sources involved in the talks said.
** It’s nice to have options (pun intended). –JB Equities rally on fiscal-cliff optimism
Chris McKhann, optionMONSTER
Equity indexes saw sharp gains yesterday apparently on optimism over fiscal-cliff negotiations, driving the CBOE Volatility Index and its futures lower.
http://jlne.ws/R3v4g5 New Rules Likely for Off-Exchange Trading, Tabb Says
Peter Chapman, Traders Magazine
Trades done away from the nation’s stock exchanges will almost certainly be subject to new rules, according to a report by Tabb Group. With nearly one-third of all shares now traded inside brokerage houses, the consultancy expects regulators to take a hard look at the impact of off-exchange trading.
http://jlne.ws/R3whnm U.S. SEC names John Ramsay head of trading and markets division
John McCrank, Reuters
The U.S. Securities and Exchange Commission said on Monday it has named John Ramsay as acting director of the regulator’s Division of Trading and Markets.
http://jlne.ws/VNCAYY 2 Former Hedge Fund Managers Found Guilty in Insider Trading Case
Peter Lattman and William Alden, Dealbook
Two former hedge fund managers were found guilty on Monday of fraud and conspiracy, the latest convictions in the government’s campaign to eliminate illegal conduct on Wall Street trading floors.
http://jlne.ws/VNCUqX Italian court to rule in landmark derivatives case
Silvia Aloisi, Reuters
An Italian court is expected to rule on Wednesday on whether four foreign banks missold derivatives to the city of Milan in a case seen as a litmus test for hundreds of local governments facing big losses from complex financial contracts.
http://jlne.ws/VND0P9 Betting on Emerging-Markets Stocks for 2013
Steven M. Sears, Barron’s
Use options on a popular ETF to wager that markets ranging from Latin America to Asia can outpace the S&P 500 next year.
http://jlne.ws/UOAj12 Audio Records of Swaps and Futures Trades Required by CFTC
Silla Brush, Bloomberg
Derivatives traders will be required to keep audio records of commodities transactions under U.S. Commodity Futures Trading Commission rules completed in a private vote today.
ExchangesCBOE Announces Special Dividend
Zacks Equity Research
Earlier this week, the board of directors of CBOE Holdings Inc. (CBOE – Snapshot Report) announced a special cash dividend of 75 cents per share payable on Dec 28, 2012 to shareholders of record as of Dec 21, 2012. This implies a dividend yield of 2.5%, based on the company’s closing share price of $30.00 as of Dec 13, 2012.
RegulationProbe Sparks Split on Trades
Scott Patterson, The Wall Street Journal
A regulatory investigation into whether stock exchanges have given unfair advantages to high-speed traders has sparked complaints against the exchanges, fueling a broader debate about how the market operates and is regulated.
TechnologyMarkitSERV Enhances Client Clearing Support for ICE Clear Credit
MarkitSERV, the most widely used electronic trade processing service for OTC derivative transactions, has enhanced its connectivity and trade management support for buy-side clearing of credit default swap (CDS) transactions at ICE Clear Credit. The first production trades using MarkitSERV’s enhanced service were cleared by ICE on November 28th.
Strategy‘Un-Volatility’ Funds Hit Fresh Lifetime Highs
By Brendan Conway, Barron’s
There’s an incredibly wide array of, well, exchange-traded stuff out there. For instance: There are two unusually complex investments that are up 200% year-to-date, and can be expected to keep rising higher barring a market selloff, or a product malfunction.