Lead Stories

High-Frequency Trading Is ‘Basically Evil’: Munger
Paul Toscano, CNBC (via Yahoo Finance)
Events in Europe are a great example of bankers gone wild and you simply can’t trust them, said Warren Buffett’s right-hand man Charlie Munger.
http://jlne.ws/10x8N94
**Munger goes after more here than just HFT.  As regards HFT John Lothian News recently interviewed Raj Mahajan, Allston Trading CEO, who has a different take on HFT than Munger does. Go here to watch the video (not taking sides here, merely offering a counterpoint). –JB

CBOE outage won’t limit listing of stock-index options: new CEO
Ann Saphir, Reuters
The Chicago Board Options Exchange outage that blocked access to contracts on two of the U.S. stock market’s most-watched indexes for a half day last week will not threaten the exclusivity of the contracts for CBOE Holdings Inc, its incoming chief executive said Friday.
http://jlne.ws/10x9teO

Volatility’s Four Straight Sessions Lockstep With Stocks is a First Since ’07
Brendan Conway, Barron’s
The market’s “fear gauge” moves in the opposite direction of stocks about 80% of the time. Not lately, though. Gains in stocks lately are apparently more of the white-knuckled sort.
http://jlne.ws/10xb2cs

CME Group Vows to Oppose Trading Taxes
Jacob Bunge, Dow Jones Business News (via NASDAQ)
CME Group Inc. ( CME ) on Thursday downplayed the prospect of higher taxes on some U.S. derivatives trading and said the futures exchange operator was lobbying against such moves in Washington.
http://jlne.ws/ZEk9wC

VIX Pointing to a Fall
Paul A Ebeling Jr, Live Trading News
VIX Pointing to a Fall
The relationships between US equity and options prices have come under increasing strain this week, with the record rally in the Standard & Poor’s 500 Index bringing on demand among both speculators and hedgers.
http://jlne.ws/10xaSlA

CBOE first quarter helped by better trading volume mix
Saabira Chaudhuri, Dow Jones Newswires (via Financial News)
CBOE has been in the spotlight after its exchange was roiled by technical issues that hit trading and closed its markets. Last week an outage prevented trading in all of CBOE’s markets, including the heavily traded stock-index options that are available only on the CBOE platform.
http://jlne.ws/105Cu70

Mr. Marilyn Monroe Explains Value
Russell Rhoads, CBOE
Arthur Miller was a playwright in the middle of the 20th century.  On May 2, 1949 he was awarded the Pulitzer Prize for the play “Death of a Salesman”.  He also has some notoriety as being Marilyn Monroe’s third and final husband.  Miller once commented, “Don’t be seduced into thinking that which does not make a profit is without value.”
http://jlne.ws/12sWDQm

Exchanges

CBOE Delays Move to Longer Trading Hours
Doug Cameron, Dow Jones Business News (via NASDAQ)
The parent of the Chicago Board Options Exchange said Friday it was delaying a planned extension of trading hours for its fast-growing VIX volatility contracts until it was satisfied there would be no repeat of the technical issues that have twice hit its markets over the past week.
http://jlne.ws/10xajYV

CBOE first-quarter profit beats Street; defers start to longer day
Ann Saphir, Reuters
CBOE Holdings Inc (CBOE.O), which runs the oldest U.S. stock-options trading venue, said on Friday that quarterly earnings rose on a trading surge of its lucrative contracts for two of the most closely watched stock indexes.
http://jlne.ws/10xa93Q

CBOE Holdings, Inc. Reports Record First Quarter Financial Results For 2013
Press Release (CBOE)
CBOE Holdings, Inc. (NASDAQ: CBOE) today reported first quarter 2013 net income allocated to common stockholders of $41.8 million, or $0.48 per diluted share, compared with $32.9 million, or $0.37 per diluted share in the first quarter of 2012.  On an adjusted basis, net income allocated to common stockholders was $43.9 million, or $0.50 per share, compared with $33.0 million, or $0.37 per diluted share, in the same period last year.  Operating revenues of $142.7 million for the first quarter increased 18 percent compared with $121.4 million in the first quarter of 2012.
http://jlne.ws/10x86wv

Regulation

House will take up bill to rein in the SEC’s regulatory power
Ben Goad, The Hill
House Majority Leader Eric Cantor (R-Va.) said Friday that the chamber would take up consideration of legislation to create new restrictions on the parameters of regulations imposed by the Securities and Exchange Commission (SEC).
http://jlne.ws/10xc6NJ

SEC’s White: Reforms Will Be Coordinated Globally
Tom Steinert-Threlkeld, Traders Magazine
The Securities and Exchange Commission under chairman Mary Jo White will take a global perspective in the reforms and rules it lays down.
http://jlne.ws/10x8hIn

CFTC faces second lawsuit over ‘anti-competitive’ rules
Paloma Migone, The Trade
Progress on derivatives rules under Dodd-Frank has been dragged down further with the US Commodity Futures Trading Commission (CFTC) facing a second lawsuit and accusations of being anti-competitive.
http://jlne.ws/10xatj0

DTCC sues regulator CFTC in swaps data spat
Douwe Miedema, Reuters
Depository Trust & Clearing Corp (DTCC) sued the top derivatives regulator over the way it has allowed two DTCC rivals to gather potentially lucrative swap trading data.
http://jlne.ws/10xb9op

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