FOA and FIA Announce Agreement to Combine Organisations under Global Structure
Press Release (FOA and FIA)
The Futures and Options Association and the Futures Industry Association today announced an agreement in principle to combine their two organisations under one global structure and brand called FIA Global.
Under this agreement, FIA—with its affiliate FIA Asia—will form a confederation with FOA under FIA Global.
FAQs on FOA and FIA Affiliation: http://jlne.ws/13VRMKS (PDF) Equity Volatility Surges Globally Amid Record Futures: Options
Cecile Vannucci and Nikolaj Gammeltoft, BloombergBusinessweek
Stock volatility jumped around the world, with the U.S. benchmark gauge surging the most in two months, after speculation the Federal Reserve will cut stimulus sent futures trading to an all-time high.
http://jlne.ws/15o2AQ0 CBOE Volatility Index hits 20 for first time this year
The CBOE Volatility Index, the widely followed index used as a gauge of investor anxiety, soared to touch the 20 level for the first time this year as markets extended a selloff on Thursday.
http://jlne.ws/15o4uA9 21 Volatility Indexes Rise This Morning
Matt Moran – CBOE
As shown in right columns of the tables below, 21 of CBOE’s volatility indexes rose this morning (as of about 10:10 a.m. Chicago time).
http://jlne.ws/19VLcsR Stocks Slide, Volatility Spikes: Is Market Overreacting to Fed?
Matt Nesto – Yahoo Finance
“This feels like an overreaction. The Fed didn’t tell us anything we didn’t already know,” says Jeff Kleintop, chief market strategist at LPL Financial, in the attached video. “It’s hard not to cheer for the unemployment rate getting down to 7% (from the current 7.6%).”
http://jlne.ws/19VKeww Traders Are Still Short to the Hilt in Volatility Funds
Brendan Conway – Barron’s
If you thought six weeks of bond-market gyrations might dampen the risk appetite of volatility traders, it hasn’t quite happened.
http://jlne.ws/19VLW18 Great volatility rotation takes hold
Christopher Whittall – IFR
Fixed income assets have become more volatile than equities over the past few weeks, turning an age-old market dynamic on its head and providing a further sign of investors re-balancing portfolios towards stocks and shares.
http://jlne.ws/19VMcgs Traders Caught Short as VIX ETFs Jump with Volatility
John Spence – ETF Trends
Volatility-linked ETFs tracking VIX futures contracts are notorious for vaporizing big chunks of investor capital with the funds losing most of their value in recent years.
http://jlne.ws/19VLLTn Goldman: The Threat to Tech Stocks
Steven M. Sears – Barron’s
With so much attention focused on Wednesday’s conclusion of the Federal Reserve rate-setting committee, it is easy to forget that stocks are affected by anything else.
http://jlne.ws/1axwKFX Global futures and options volume rose slightly in Q1: FIA
Press Release (via Futures)
The number of futures and options traded on exchanges around the globe reached 5.41 billion during the first quarter of 2013, up 0.5% from 5.39 billion during the first quarter of 2012. Futures-only volume rose 21.2% during the quarter to 3.06 billion from 2.53 billion contracts, but that was almost completely offset by a 17.9% decrease in options volume to 2.35 billion from 2.86 billion contracts.
http://jlne.ws/15o2cAV Futures Drop Amid Global Rout as China Data Add to Fed Gloom
Adam Samson – Fox Business
U.S. markets were poised to extend a global selloff Thursday as concerns about an end to the Fed’s bond buying, the world economy and the strength of corporate America sent traders racing out of risky assets.
http://jlne.ws/19VLtMn European hedge funds struggle to break into U.S. market
Laurence Fletcher – Reuters
European and Asian hedge fund firms are finding the potentially lucrative U.S. market impossible to ignore, but as tough as ever to negotiate.
http://jlne.ws/11QlMor ABN Amro broker to pay $1m to settle customer account shortfalls
Gregory Meyer and Philip Stafford – Financial Times
A broker owned by ABN Amro has agreed to pay $1m to settle charges over customer account shortfalls worth tens of millions of dollars, as part of a regulatory crackdown on the futures industry following scandals at MF Global and Peregrine Financial Group.
http://jlne.ws/10B7Ljs CME Group’s Pinnacle Awards: …and the winner is…
Jim Kharouf – John Lothian News
Last night, the CME hosted its second annual Pinnacle Awards event, recognizing the top CTAs of 2012 and for the five year period ending last year. All the winners are posted on the JLN blog at http://jlne.ws/10AbNs8. Also congratulations to Keith Campbell, of Campbell & Co. for the Pinnacle Achievement Award. Well deserved.
ExchangesMoscow Exchange seeks to ramp up derivatives offering
Anish Puaar, Financial News
The Moscow Exchange will add futures based on popular German stocks to its market, as part of its plans to further develop a derivatives offering for both retail and institutional investors.
RegulationFINRA reviewing brokerages’ use of social media
Ashley Lau – Reuters
Wall Street’s Financial Industry Regulatory Authority is looking at how brokerage firms supervise their use of communication outlets such as Facebook, Twitter and LinkedIn, the industry-funded regulator said.
http://jlne.ws/11QlD4j Futures Lobbyists in U.S., Europe Combine to Address Rules
Matthew Leising – BloombergBusinessweek
The futures industry lobbying organizations based in the U.S. and Europe are combining to address financial regulation on a global scale, the groups said in a statement.
TechnologyFirm58 Offers New Market Surveillance Solution for Broker Dealers
Press Release (Firm58)
Firm58 is launching its new compliance & surveillance solution for broker dealers in response to heightened scrutiny of trading activity and evolving requirements for broker dealer trade supervision. The new solution will assist brokerages with adhering to the regulatory bodies’ broadening definitions of suspicious behavior, by detecting the accountable party and corresponding trades.
** The “failure to supervise” rule makes a broker-dealer guilty until proven innocent. -DA Nasdaq seeks tech head to build $1bn business
Tim Cave – Financial News
Nasdaq OMX has launched a global search for a new manager of its technology division, who will have a remit to grow the exchange group’s revenues from technology sales to over $1bn, Financial News has learnt.