JLN Options: ISE Renews CBOE Automated-Markets Patent Court Fight

Mar 11, 2013

Lead Stories ISE Renews CBOE Automated-Markets Patent Court Fight
Andrew Harris, Bloomberg
International Securities Exchange LLC, an electronic options-trading forum, is set to renew legal hostilities with Chicago Board Options Exchange Inc. today in a fight over an automated trading patent.
http://jlne.ws/YS5xY4 FOCUS: Speculators Exit Bullish Precious Metals Futures, Options Positions — CFTC
Debbie Carlson, Kitco News (via Forbes)
Weaker prices and a greater interest in other markets like equities convinced speculators to lighten up on their bullish precious metals futures and options positions at the Comex division of the New York Mercantile Exchange, with funds setting a new low for gold bullish position in one U.S. government data report.
http://jlne.ws/Y4ZZua Russell Strikes Exclusive Options Deal With CBOE and NYSE
Kaitlyn Kiernan and Jacob Bunge, Dow Jones Business News (via NASDAQ)
NYSE Euronext ( NYX ) and CBOE Holdings Inc. ( CBOE ) are getting exclusive rights to list options on Russell Investments’ stock indexes, the two exchange operators and the indexing company announced Friday.
http://jlne.ws/ZukkpG
**Includes some good background information about Russell Investments’ current and past alliances, volumes in competing index-based products, etc. — SR Small-Cap Index Now Often More Volatile Than Tech Stock Index by Matt Moran
Matt Moran, CBOE
Today Russell Investments announced exclusive agreements with NYSE Euronext and CBOE Holdings for Russell U.S. index options.
The Russell 2000 (RUT) Index is a leading benchmark for the performance of small-capitalization stocks. CBOE has offered options on the Russell 2000 Index (RUT) since 1992. Today total open interest for RUT options is 809,768 (335,634 calls and 474,134 puts).
http://jlne.ws/XYvCps Volatility ETFs: VIX Drops Below 12 for First Time Since 2007
John Spence, ETF Trends
Volatility exchange traded products such as ProShares Ultra VIX Short-Term Futures (NYSEArca: UVXY) and iPath S&P 500 VIX Short-Term Futures ETN (NYSEArca: VXX) fell Monday as the CBOE Volatility Index dropped below 12 for the first time since 2007.
http://jlne.ws/Y52UDn U.S. Stocks Advance as S&P 500 Approaches Record High
Sarah Pringle, Bloomberg
U.S. stocks advanced, erasing earlier declines, as the Standard & Poor’s 500 approached a record high and a gauge of market volatility slipped to the lowest level in five years.
http://jlne.ws/Y54yVp Fidessa’s integrated Market Abuse Monitoring service now available in Europe
Press Release (Fidessa)
Fidessa group plc (LSE: FDSA) has today unveiled a new service that provides fully integrated market abuse monitoring for its European sell-side clients. Fidessa’s Market Abuse Monitor delivers fully automated surveillance and detection capabilities that flag behaviour likely to give rise to suspicions of insider dealing and market manipulation.
http://jlne.ws/Y4Rnnm Is Comfort Zone An Ilusion?: Weekly VIX ETF Report
Wall Street Sector Selector
On March 7, VIX – the CBOE S&P 500 Volatility Index (also known as the fear index) – declined by almost 3.5 percent to an extremely low 13.06, which is less than the year’s already unusually low average level of 13.90.  Investors just aren’t afraid anymore.
http://jlne.ws/ZujtFD

Exchanges

IntercontinentalExchange Announces May Launch of Credit Index Futures Contracts
Press Release (ICE)
IntercontinentalExchange (NYSE: ICE), a leading operator of global markets and clearing houses, announced today it will introduce four credit index futures contracts starting in May 2013. The contracts will be based on the Markit CDX and Markit iTraxx indices, and are subject to review by the Commodity Futures Trading Commission. 
http://jlne.ws/Y4YtZd CME Group’s Duffy talks markets, regulation and MF Global with CU Denver students
Heather Draper, Denver Business Journal
Students at the University of Colorado Denver Business School on Friday got to ask questions of the man who oversees the U.S. derivatives and futures exchanges that in 2012 handled nearly 3 billion contracts worth about $1 quadrillion in notional value.
http://jlne.ws/Zuie9k CME needs to find the next big thing
Joe Cahill, Crain’s Chicago Business
Ramrod-straight in his office chair overlooking the Chicago River, the executive chairman and president of CME Group Inc. barely blinks or draws breath as he fires off reasons why the company will keep its place atop the futures industry. He cites the depth of CME’s markets, the breadth of its product offerings, its technology, its innovation and, most of all, its sheer size.
http://jlne.ws/ZujSIi Intrade Shuts Down Months After Federal Scrutiny
Steven Russolillo, The Wall Street Journal
Wonder who bet on this: Online prediction betting site Intrade has abruptly closed its doors.
The company, embroiled in controversy throughout the last several months, said Sunday night it had stopped trading on its website, a move that comes after Intrade last year said it wouldn’t take bets from U.S. residents following a federal lawsuit.
http://jlne.ws/ZuoYUL

Regulation

CFTC approves contentious CME reporting rule
Anish Puaar, The Trade
The Commodity Futures Trading Commission (CFTC) has approved a rule in CME Group’s rulebook that compels market participants to report the trades cleared through the US derivatives bourse to its data repository.
http://jlne.ws/10qK10y CFTC’s Berkovitz Steps Down as Top Swaps Regulations Lawyer
Silla Brush, Bloomberg
Dan M. Berkovitz, the top lawyer at the U.S. Commodity Futures Trading Commission, will step down at the end of the month after helping the agency write derivatives regulations required by the Dodd-Frank Act.
http://jlne.ws/13Ri2s7

Technology

Algorithmic Trading special report
Victor Anderson. WatersTechnology
The extent to which algorithmic trading has permeated the financial services industry depends on who you ask.
http://jlne.ws/XCVYO9

Strategy

Make the Most of Your Treasuries 
Steven M. Sears, Barron’s
A conservative options strategy can produce profits with relatively low risk. Also, beware the coming minis.
http://jlne.ws/Y4UprU A Closer Look At Buy/Write ETFs
Aaron Levitt, ETF Database
The sheer growth in the number of ETFs has been staggering. What started off as a simple way to track basic stock and bond market indexes has ballooned outwards quite rapidly. Retail investors now have the ability to use ETFs to access a variety of asset classes once reserved for wealthy or institutional sized investors.
http://jlne.ws/Y51qZz

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