JLN Options: Interactive Brokers to Pay $700,000 Penalty

Jul 25, 2012

Lead Stories Interactive Brokers to Pay $700,000 Penalty
Tom Steinert-Threlkeld, Securities Technology Monitor
Interactive Brokers agreed to pay civil penalties of $700,000 to settle a case involving inaccurate reporting on futures transactions involving large trading firms.
http://jlne.ws/Po7CXE LME Shareholders OK HKEx Takeover Pact
Philip Burgert, Resource Investor
Shareholders of the London Metal Exchange voted in two venues on Wednesday to approve a £1,388 million ($2.15 billion) takeover bid by the Hong Kong Exchanges & Clearing Ltd., ending 10 months of debate on the sale of the exchange.
http://jlne.ws/Mmx1hS 
**The end of the LME’s 135-year history as a member-owned exchange (one of the last left in the world). –SR Stocks expelled from F&O take a beating (India)
Business Standard
A majority of the stocks that the National Stock Exchange (NSE) has decided to remove from the futures and options (F&O) segment took a beating on Wednesday due to unwinding of positions by traders.
Out of the 51 excluded stocks, 44 ended with losses, with prominent names like Educomp Solutions declining 9.6 per cent, Lanco Infratech losing 8.5 per cent and Jet Airways dropping 5.6 per cent.
http://jlne.ws/QG2wbC Bursa Malaysia appoints market makers for CPO futures option-The Malaysian Reserve
Reuters
Four market makers have been appointed for Bursa Malaysia Bhd’s recently-launched option on crude palm oil futures (OCPO), the first Asian exchange-traded agricultural options contract.
http://jlne.ws/MmwNXY OptionMonster Daily Volatility Report with Jamie Tyrrell of Group1 Trading:

Exchanges

Low volumes at U.S. exchanges keep earnings under pressure
John McCrank, Reuters
U.S. exchanges start reporting financial results on Wednesday, with expectations mixed following a quarter in which many investors pulled back from the markets because of an uncertain, sluggish global economy.
U.S. economic data in the period pointed to a stalling U.S. economy, while fears that the European debt crisis could worsen resurfaced and China’s growth slowed. Investor sentiment also took a hit due to Facebook’s highly anticipated, but glitch-ridden market debut on May 18.
http://jlne.ws/Mmw1u0 NASDAQ OMX Reports Second Quarter 2012 Results
Press Release
The NASDAQ OMX Group, Inc. today reported results for the second quarter of 2012. Second quarter non-GAAP net exchange revenues were $413 million, down 0.5% compared to the second quarter of 2011. Excluding the impact of foreign currency, non-GAAP second quarter 2012 net exchange revenues increased 3% compared to the second quarter of 2011. 
http://jlne.ws/MmwAE3 Nasdaq OMX Group Management Discusses Q2 2012 Results – Earnings Call Transcript
Seeking Alpha
Thank you, operator, and good morning, everyone. Thanks for joining us today to discuss NASDAQ OMX’s second quarter 2012 earnings results. With me today are Bob Greifeld, our Chief Executive Officer; and Lee Shavel, our Chief Financial Officer. Ed Knight, General Counsel, joins us as well.
http://jlne.ws/MmxccO CME wins second delay of higher margins
Reuters
The CME Group has been granted a second extension — of 60 days — by the U.S. Commodity Futures Trading Commission before imposing new rules that will increase margins for its non-hedge or spec members, a CME spokesman said on Tuesday.
http://jlne.ws/Mmxy3k ASX Plans Data Center Link-Up With Singapore Stock Exchange
Caroline Henshaw, The Wall Street Journal
Australia’s dominant stock exchange is looking to boost its ties with its Singaporean counterpart at a time when markets are expecting more consolidation in the global exchange industry…
Currently around 6% of futures and options volume on the ASX 24 market is generated from the Australian exchange’s international hub network across the U.S., U.K. and Hong Kong as well as Singapore, but it is hoping to increase this number with the new deal.
http://jlne.ws/QG1aO4 NYSE Amex/Arca Options Ruling and Trades Under Further Review in AAPL Issues
Press Release (via email…full text)
NYSE Amex [and Arca] Options Market Management has ruled trades executed from 9:34-9:37 in AAPL August 745 C to August 830 C will be busted in accordance with the obvious error NO BID series rule 975NY.  Market Management continues to review trades from 9:34-9:37 in AAPL series that do not qualify to be busted under the no bid rule.

Strategy

Jump-Start Your Own Recovery With Options
Steven M. Sears, Barron’s
The world economy may be on the precipice of another recession. Many investors already feel they, and their stock portfolios, have fallen into the abyss…
A path through these difficulties exists in the options market. Some critics will say it is not an ideal path because it clouds investing with some complexities and expenses of trading. But the mixture does something that neither does particularly well without the other: It positions investors to increase returns, lower the price of stocks already owned, and manage risk.
http://jlne.ws/NUzcMs

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