Financials
Brendan Bradley’s Front Row Seat to the Path to Electronic Trading
Brendan Bradley had a front row seat for the major exchange battles between open outcry trading and electronic trading after starting at the London International Financial Futures Exchange (LIFFE) in the 1980s and then moving to DTB in the mid-1990s. While there he saw the German Bund contract battle that shocked the global derivatives trading world and then later witnessed the competition between Eurex and the Chicago Board of Trade (CBOT) that he said ultimately led to the global leading exchange’s demise.
Bradley shared a historic overview of the development of markets in Europe as electronic trading developed for The Path to Electronic Trading from John Lothian News’ MarketsWiki Education video series.
Multiple options expirations add to September market gyrations; Who are the smartest traders in the room?; Strike price pick no simple matter; The Spread – September 17, 2021
– Options markets take a bumpy ride ahead of simultaneous options and futures expirations;
– John’s Take looks at why it’s the smartest traders in the room who trade options;
– Two crucial concepts in strike price choices with Jermal Chandler in the Term of the Week.
Options Veterans Forge New Path With Tried-And-True Strategy
As its name suggests, Options Solutions is an options-centric asset-management firm that aims to increase the returns of investors’ portfolios with customized options strategies. JLN’s John Lothian and Suzanne Cosgrove recently interviewed the founders of the new enterprise, described by CEO Michael Brodsky as an early-stage, high-growth company. Team members are led by former CBOE Chairman and CEO Bill Brodsky, as well as Michael, his son, and options industry strategist Steve Sears.
GameStop disappoints; Coinbase gets into it with the SEC; Cboe offers Europe options; MIAX Spikes a record; John’s Take on CBOE’s Phil Slocum’s passing and a great moment in options history; and how to execute a strangle — The Spread — September 10, 2021
– Options markets get ready for fall’s chill as equity prices consolidate; Another perspective on small investors;
– John’s Take pays homage to an options veteran and looks at a moment in options market history;
– Pros and cons of using options strangles with Jermal Chandler in the Term of the Week.
FEX Global Makes Its First Trade
The first power trade on the Australian start-up exchange FEX Global was made Friday, September 10, and it was truly a global story. The trade was made using a Chicago-based Trading Technologies trading screen, cleared on the Chicago-based CME Group’s clearinghouse and traded on the FEX Global match engine in Sydney.
Fed’s Powell Takes Center Stage; New Company Offers Options Solutions; Explaining Volatility Skew – The Spread – August 27, 2021
In this week’s options news, the Fed’s Jackson Hole pronouncements placate the markets; meme stocks take off on a lark; volatility skew rises as traders remain divided; bitcoin and ethereum options hunker down ahead of expiration and Eurex plans to launch a first; John’s Take looks at a new options business with seasoned players; And Jermal Chandler kicks off this week’s options “Term of the Week” with the important concept of volatility skew.
CME Buying Cboe? Options News, John’s Take and Term of the Week in The Spread – August 20, 2021
— Will CME Group finally buy Cboe Global Markets?; Options volume outpaces exchange-traded derivatives action; Will the Fed taper sooner or later?; Volatility comes back as August options expire;
— John Lothian talks about Cboe sharks, MIAX SPIKES and remembers Philip McBride Johnson;
— Tastytrade’s Jermal Chandler explains why you need to keep a close watch on gamma in the “Term of the Week.”
Buy the Sharks, Sell the Bait
Cboe and its CEO Are Now in a Different Boat
In January of 2014, after hearing CBOE executives crow at an annual Chicago press lunch about how great their publicly traded company and its products performed in 2013, I wrote a commentary titled “The CME Should Buy the CBOE Soon.” There have been many on and off discussions about just that for many years. And yesterday for just a short period of time it seemed like it was happening, as the Financial Times reported that CME Group had approached Cboe to acquire it in a $16 billion deal that CME Group later strongly denied.
The Spread – August 13, 2021
Volatility eases as summer draws to a close and earnings season ends; Treasury and Eurodollar options perk up on inflation worries; John Lothian delivers a tribute to the late Wayne Luthringshausen and talks market structure; Hong Kong Exchanges and Clearing launches new options; Two economics professors take a poke at stock market bubbles; and tastytrade’s Jermal Chandler talks about theta in the “Term of the Week.”
Bruce Williams – He Found Love of Open Outcry Trading Through Tennis – Part Two
Williams Spoke to John Lothian News for the Open Outcry Traders History Project Bruce Williams met Blair Hull when both were on a joint CBOT-CBOE committee for a new equity product where different versions would trade at the exchanges. Williams was in the Major Market...
The Spread – August 6, 2021
Robinhood shares get an options boost; July options volume up more than 29%; John Lothian says exchange competition is heating up; The Delta variant and volatility; Bullish bets in bitcoin and ether options; And tastytrade’s Jermal Chandler goes back to the basics with calls and puts in the Term of the Week.
Bruce Williams – He Found Love of Open Outcry Trading Through Tennis – Part One
Williams Spoke to John Lothian News for the Open Outcry Traders History Project Bruce Williams was a South Side Chicago street smart kid who found his way to the markets through tennis. As a youth, Williams had dreams of being a professional tennis player, and it was...
The Spread – July 30, 2021
Earnings season in full bloom; Options lead year-to-date derivatives volume; Robinhood’s IPO; John gets real with Get Real VR: Conflicting factors underpin volatility; Cboe cleared for fall European competition; and the Cboe Options Institute’s Kevin Davitt talks about vega in this week’s “Term of the Week.”
Charles Farra – The Path to Electronic Trading Has Many Steps and Flights
For Charles Farra, there were many steps on the path to electronic trading that saw him start as a runner for Cargill Investor Services in 1981 and work his way up in the organization. He would serve the firm in Chicago, London and Tokyo during a time when new products and big markets led to incredible growth in the futures industry.
Yra Harris – Open Outcry Traders History Project – Part 1
Yra Harris was on a career track to become a college professor in the 1970s, earning a master’s degree in economics. But when he came home from school his parents gave him $250 for a suit and told him to go look for a job. He did, interviewing at Continental Bank, First Chicago and other banks, but he said he had “broader expectations,” as well as aspirations to go to Washington to work for a congressional committee. A family friend suggested he get an IMM (International Monetary Market) seat at the CME for $10,000, but it wasn’t until May 1977 that he got a membership.
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London Stock Exchange to abandon lossmaking derivatives venture
First Read $53,406/$300,000 (17.8%) ++++ Hits & Takes John Lothian & JLN Staff The London Stock Exchange has given notice that CurveGlobal is to be closed effective Friday, the 28th of January, 2022. CurveGlobal's CEO Andy Ross had this to say on LinkedIn...
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The founder of a volatility-hedging program that gained over 3,700% in March 2020 says the stock market could fall another 10% to 20% and the VIX could spike to 125
Lead Stories The founder of a volatility-hedging program that gained over 3,700% in March 2020 says the stock market could fall another 10% to 20% and the VIX could spike to 125. He breaks down his strategy and shares 2 other trading ideas. Vicky Ge Huang - Business...
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