JLN Options: Glitch in Nasdaq Options Trading

Jun 8, 2012

Lead Stories Glitch in Nasdaq Options Trading
Nasdaq OMX Group, still smarting from problems with its Facebook IPO, briefly halted trading in about half its options listings Friday morning, citing “systems issues.”
At 11:15 a.m. EDT, the company issued an alert to market participants, notifying them trading was halted in symbols N-Z. That was later expanded to include symbols beginning with L and M.
** Hard to imagine worse timing for NASDAQ as they try to quell the fallout over the Facebook IPO problems (not that any time for this happening is “good”). – JB Bear Stearns in $275 million shareholder settlement
Jonathan Stempel, Reuters
Former Bear Stearns Cos shareholders who claimed they were misled about the investment bank’s deteriorating health agreed to settle their nationwide lawsuit for $275 million, four years after the company was bought by JPMorgan Chase & Co…
The settlement covers owners of Bear Stearns stock and call options, and sellers of Bear put options, between December 14, 2006 and March 14, 2008.
http://jlne.ws/LdKUgA Noll Discusses Nasdaq’s Options Plans and Trends (Part II)
Peter Chapman, Traders Magazine
Eric Noll, a Nasdaq OMX executive vice president responsible for transaction services in the U.S. and U.K, discussed his various businesses during Nasdaq’s Investor Day on May 10. What follows is an edited transcript. In this, the second part of a two-part series, edited by Peter Chapman, Noll discusses Nasdaq’s moves in options as well as trends in the options industry.
** Noll discusses, among other things, NASDAQ’s new Bx exchange. – JB


CME Group to Expand CBOT Grain and Oilseed Open Outcry Trading Hours to 2 p.m. CT
Press Release
CME Group, the world’s leading and most diverse derivatives marketplace, today announced it will extend open outcry trading hours for CBOT Grain and Oilseed futures and options to 2 p.m. CT, Monday to Friday. Daily settlements will move from 1:15 p.m. CT and will be based on market activity at or around 2 p.m. CT each day for the Grain and Oilseed futures and options as well as for Ethanol futures and options. The new open outcry trading hours will be effective beginning June 25, 2012, pending CFTC review.
Products included in the expanded hours are CBOT Corn, Mini-Sized Corn, Soybeans, Mini-Sized Soybeans, Wheat, Mini-Sized Wheat, Soybean Meal, Soybean Oil, Rough Rice and Oats futures and options, plus all related calendar spread options and inter-commodity spread options.
http://jlne.ws/K65S50 KCBT Announces Changes to HRW Wheat Futures & Options Open Outcry Trading Hours
Press Release
The Kansas City Board of Trade has filed a submission with the CFTC to extend open outcry trading hours for the KCBT’s flagship hard red winter wheat futures and options contracts.
The Monday through Friday open outcry sessions will close at 2:00 p.m. CT., the same time that electronic trading closes. Daily settlements will be based on the 2:00 p.m. close. Currently the open outcry market closes at 1:15 p.m. The changes are effective with the June 25 business date.
The Monday through Friday open outcry sessions will continue to open at 9:30 a.m. CT on most days, with the exception of USDA report release dates, when the market will open at 7:20 a.m. CT (effective business date June 12, the next release date).
Wheat futures and wheat options electronic trading hours (Sunday through Friday) are 5:00 pm to 2:00 pm CT for Hard Red Winter Wheat futures and options.


How to Position Yourself for ‘Months of Continued Volatility’
Antonia van de Velde, CNBC
The world economy sits on a “wobbly stool” but its three legs – Europe, the United States and China – remain solid, UBS Wealth Management said, reaffirming its view that investors should take on some risk, mostly in high-yield credit.
http://jlne.ws/KE2Tlt VIX ‘fear index’ makes an intriguing hedge for investors
John Waggoner, USA TODAY,
We’re used to miracle cures. Got a nasty infection? The doctor will give you antibiotics. Need your gall bladder out? They can now pull it out without slicing you from nave to chops. And if you ask your dentist nicely, he can probably get you Wi-Fi as well as AM and FM in your fillings.What investors would like, however, is a cure for days like — well, most of last month. And even though there are some theoretically promising developments, we’re still in the Dark Ages as far as immunizing against big losses. Case in point: funds that follow the so-called “fear index.”

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