JLN Options: ICE Throws Down Gauntlet on Payment for Order Flow

Jun 18, 2013

Commentary & Insight

Jeremie Bacon

Jeremie Bacon on Taking the Reins at ORC Americas and Modular Technology
MarketsWiki.tv

After a decade of running his own technology firm, Jeremie Bacon decided it was time for a new challenge. In May, he took the reins as president of Orc Americas, the Chicago-based subsidiary of Orc Group.

Bacon sat down with JLN editor-in-chief Jim Kharouf to talk about why decided to leave the firm he co-founded, Backstop Solutions, a software-as-a-service company in the alternative investment space. Bacon said he was impressed with ORC’s established footprint in the industry and reputation it has built since its launch in 1987. He also likes the relatively new ownership structure of the firm. ORC, which had been publicly traded since 2000, was taken private by Orc is owned by Cidron Delfi Intressenter AB, which is in turn owned by Nordic Capital Fund VII, a Swedish private-equity firm last year.

Watch the video »

Lead Stories

ICE Throws Down Gauntlet on Payment for Order Flow
Dan Collins – Dan Collins Report
A new sheriff is coming to the world of cash equities and options and he is determined to change the way those markets trade. ICE Chairman and CEO Jeff Sprecher dropped a bomb during last week’s Sandler Global Exchange & Brokerage Conference in talking about the new markets he is acquiring with ICE’s acquisition of NYSE Euronext. The conference was hosted by investment banking firm Sandler O’Neill + Partners.
http://jlne.ws/18VvcY6
** If you’re not following Dan Collins’ new blog, dancollinsreport.com, you should be. -JL

Quadruple Witching, Expect The Unexpected – FSLR, GMCR, NFLX, PCLN
Nicholas Santiago – The Wall Street Pit
This Friday is going to be options expiration for the month of June. It is also a quadruple witching expiration which occurs four times a year on the third Friday of March, June, September and December. This is a time when stock index futures, stock index options, stock options and single stock futures will expire.
http://jlne.ws/129yayB

A Pre-Fed VIX Check
Adam Warner – Schaeffer’s Investment Research
The recent preponderance of triple-digit moves in the Dow Jones Industrial Average (DJI) has gotten some well-deserved publicity. And it’s, of course, impacted volatility readings; 10-day realized volatility (RV) in the SPDR S&P 500 ETF (SPY) has spiked up to 17, the high-water mark since late April. What’s more, that April reading was really thanks to a big dip in one session (April 15).
http://jlne.ws/19OmaM1

If Fed tightens policy, VIX will shrug 
David Berman – The Globe and Mail
Many market watchers are flipping back to the year 1994, in the hope that the year’s surprise rate-hikes by the Federal Reserve will provide a decent template for the near future. The latest look-back tries to gauge what the volatility index is going to do.
http://jlne.ws/19Ol0QE

VIX Escapes Stock Rally with Minor Damage
Wall Street Sector Selector
Despite Monday’s modest stock market rally, the VIX declined by only 2 percent.
http://jlne.ws/129ymxO

VIX and S&P 500 During The 1994 Interest Rate Hike Cycle
Bill Luby – ETF Daily News
With yesterday’s The VIX and the Pre-FOMC + Post-FOMC Trades post in the books, it occurred to me that my reference to the series of interest rate hikes in 1994 probably stretches back before the memory banks of the current generation of investors.
http://jlne.ws/19OlXZg

Expecting a rise in market volatility? There’s an ETF for that
M. Corey Goldman, Financial Post
Where the global economy may or may not go, what the Federal Reserve and other central banks may or may not do, whether “Abenomics” in Japan works – all fodder these days for those who expect volatility to come back to the financial markets.
http://jlne.ws/129yZaH

High-Frequency Trading Tactic Lowers Investor Profits
Newswise
High-frequency trading strategies that exploit today’s fragmented equity markets reduce investor profits overall, according to new findings by University of Michigan engineering researchers.
http://jlne.ws/18VvfTG

Spot Trading Named Three Consecutive Years as One of “Chicago’s 101 Best and Brightest Companies to Work For”
Press Release (via PR Newswire)
Spot Trading LLC, a leading proprietary trading firm, announced today that the National Association for Business Resources is honoring the firm for the third consecutive year as one of “Chicago’s 101 Best and Brightest Companies to Work For”.
http://jlne.ws/18Vvezp

Exchanges

Eurex Exchange lists MSCI emerging markets index derivatives
HedgeWeek
Effective 1 July, futures and options will be offered based on the following regional indices: MSCI Emerging Markets, the leading index for this segment, and the regional sub-indices MSCI EM EMEA, MSCI EM Latin America and MSCI EM Asia.
http://jlne.ws/19OjLBc

CBOE, CFE, C2 and CBSX Trading Schedule for the Independence Day Holiday
Press Release
CBOE Holdings, Inc. (NASDAQ: CBOE) announced the following trading schedule for Chicago Board Options Exchange (CBOE), CBOE Futures Exchange (CFE), C2 Options Exchange (C2), and CBOE Stock Exchange (CBSX) in observance of the Independence Day Holiday. All times listed are Chicago time.

Wednesday, July 3
CBOE and C2:     – Equity options will close at 12:00 p.m.
– Options on ETPs that normally close at 3:00 p.m. will close at12:00 p.m.
– Options on ETPs that normally close at 3:15 p.m. will close at12:15 p.m.
– Index options will close at 12:15 p.m.
CFE:     – Futures that normally close at 3:00 p.m. will close at 12:00 p.m.
– Futures that normally close at 3:15 p.m. will close at 12:15 p.m.
CBSX:     – All stock trading will close at 12:00 p.m.

Thursday, July 4
CBOE, CFE, C2 and CBSX will be closed.

Friday, July 5
CBOE, CFE, C2 and CBSX will have regular trading hours.

Regulation

CFTC Charges North Carolina Man for $10 Million Commodity Pool Fraud 
Nathalie Tadena – The Wall Street Journal
The CFTC charged James A. Shepherd and James A. Shepherd Inc., a registered commodity pool operator, with fraudulently soliciting about $10 million from approximately 176 individuals to invest in a commodity pool called the Shepherd Major Play Option Fund LP for the purpose of trading options on futures contracts.
http://jlne.ws/19OiXMy

U.S. swaps derivatives regulations create uncertainty for Asian banks
FinCAD
Derivatives regulations affecting cross-border swaps transactions recently implemented in the United States have been creating significant uncertainty for Asian lending institutions that are entering into these contracts with American counterparties.
http://jlne.ws/129y0an

Technology

IDG’s Computerworld Names CME Group to 2013 List of Best Places to Work in Information Technology
Press Release (CME Group)
CME Group, the world’s leading and most diverse derivatives marketplace, today announced it has been selected by IDG’s Computerworld as a 2013 Best Place to Work in Information Technology (IT) honoree, one of 100 top organizations that provide IT employees with a stimulating work environment as well as great benefits and compensation. This is the ninth consecutive year the company has been named to this list, and once again CME Group is the only financial exchange company to receive the honor.
http://jlne.ws/18Vvezn

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