Indian Options Grow Fastest in World as Sensex Tops BRICs
Santanu Chakraborty and Michael Patterson, Bloomberg
India’s options market is growing at the fastest pace in the world, helping restore investor confidence in a stock market yet to recover from a 52 percent plunge during the global financial crisis.
http://jlne.ws/YTkeO0 Here are Wall Street’s five worst trades of 2012
Matt Phillips, Yahoo Finance
1) The Whale
2) The Facebook IPO
3) Wall Street goes long Romney
4) Giving money to John Paulson
5) Knight Capital’s $440 million electronic oops
** I know this is not strictly options related but interesting. If any of you have some to add to this list drop me a line. –JB Funds Shed Gold Positions, Bolster PGM Futures, Options – CFTC
Kitco News (via Forbes)
After significantly building up their net-long positions in gold futures and options contracts on Comex division of the New York Mercantile Exchange in the past three weeks, speculators completely eliminated those recently established long positions in the latest count of speculative activity from Commodity Futures Trading Commission.
http://jlne.ws/YU87jN As “fiscal cliff” nears, market complacency sets in
Angela Moon and Steven C. Johnson, Reuters
Like many on Wall Street, investor Todd Petzel cringed when U.S. Treasury Secretary Timothy Geithner said this past Wednesday that he was ready to let the economy go over the “fiscal cliff” if Republicans would not agree to higher tax rates on the rich.
** It is looking more and more like the markets already have this all priced in. Barring something dramatic and unexpected happening the markets seem to have already come to terms with this. –JB Futures lobby group hires FSA’s top commodities regulator
Tom Osborn, Financial News
Natasha Stromberg has departed the City watchdog to join the Futures and Options Association at a time when negotiations on rules affecting commodity derivatives markets are approaching a critical juncture.
http://jlne.ws/YTk8WQ Goldman Sachs fined $1.5 million for trading glitch
Douwe Miedema, Reuters
Goldman Sachs Group Inc was fined $1.5 million to settle charges it failed to supervise its traders and allowing one futures dealer to hide billions in dollars from sight and causing a $118 million loss.
ExchangesNYSE Euronext Announces Trading Volumes for November 2012
NYSE Euronext (NYX) today announced trading volumes for its global derivatives and cash equities exchanges for November 2012. Global derivatives average daily volume (“ADV”) of 8.1 million contracts in November 2012 decreased 2.5% compared to November 2011, but increased 12.2% from October 2012. Trading volumes in European and U.S. equities, declined year-over-year but U.S equities improved from October 2012 levels.
RegulationNew clearing rules spell stark choice over hedging strategies
Tom Osborn, Financial News (subscription)
Final rules defining the way the $639 trillion global swaps market is to be transferred to central counterparty clearing has left the buyside between a rock and a hard place: either firms put up large amounts of collateral cash or use other derivative products, which could expose them to more risk.
http://jlne.ws/YUaNOA Technical Fixes Prompt Suspicion From Dodd-Frank Backers
Cheyenne Hopkins, Bloomberg
U.S. lawmakers and lobbyists who once backed repeal of the 2010 Dodd-Frank Act are now pushing for technical fixes to the law, and they’re getting a skeptical reception from the measure’s advocates.
http://jlne.ws/RWBmzj SEC Opens Up a Bit on Funds’ Use of Derivatives
Brendan Conway, Barron’s
For more than two years, securities regulators have been reviewing the use of derivatives in the fund industry. In the meantime, no new exchange-traded funds that make heavy use of derivatives could launch.
TechnologyEquinix Plans Major Expansion in Toronto
Rich Miller, Data Center Knowledge
Equinix is preparing a major expansion in Toronto, where it has leased substantial space in a new building on Front Street, not far from the company’s existing facility, housed in the city’s primary telecom hub at 151 Front Street. The company disclosed its plans in an SEC filing late last week.
http://jlne.ws/X0Jb3H STRATEGY More Options For Options Traders
NYSE Euronext U.S. Options Exchanges announced on November 12, 2012 that they are expanding the listing and trading of their Short Term Option Series program from a single week to five consecutive weeks.
http://jlne.ws/Z5LyaT Covered Call Writing And Stock Option Expiration Cycles
Alan Ellman, Seeking Alpha
When studying option trading basics, we learn that options expire on the third Friday of the month. In the BCI methodology we sell mainly 1-month options. When we view an options chain we see several other expirations available. However, they are not the same for each security.
http://jlne.ws/Z5MpZ6 Combining The Financial Sector With A Great Dividend For Any Portfolio
I am not the biggest fan of mutual funds or ETFs, but there are times when I can actually embrace them when they make sense. I firmly believe that 2013 will be a year of recovery for a slow growth economy. In that environment, the financial sector has almost always led the way.