JLN Options: ISE to List Options on Facebook on May 29

May 15, 2012

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ISE to List Options on Facebook on May 29 
NEW YORK, May 15, 2012 – The International Securities Exchange (ISE) today announced that it will list options on Facebook (ticker: FB) beginning on Tuesday, May 29. Citadel Securities LLC will serve as the Primary Market Maker for Facebook at ISE. The options listing date is contingent on a successful completion of Facebook’s initial public offering on Friday, May 18.  
http://jlne.ws/KLQLfj (PDF)

CBOE Information:
The CBOE has not put out a press release regarding options on Facebook, but has released the following information:
If Facebook launches its IPO on Friday, May 18, the earliest Facebook options could begin trading would be Tuesday, May 29.  The exchange has some qualifiers in its rules that dictate when the exchange can list a new option, including
— A minimum of 7,000,000 shares of the underlying security which are owned by persons other than those required to report their stock holdings under Section 16(a) of the Securities Exchange Act of 1934.
— A minimum of 2,000 stockholders
— Trading volume has been at least 2,400,000 shares in the preceding 12 months
—  Market price per share has been at least $3.00 for the previous 5 consecutive business days preceding the date on which the Exchange submits a certificate to the Options Clearing Corporation for listing and trading.

UPDATE: Exchanges Lay Plans For Facebook’s Market Debut
-Nasdaq OMX conducting additional IPO tests this week
-NYSE Euronext dedicating server on Arca to Facebook shares
-Options on Facebook seen listing May 29
By Jacob Bunge Of DOW JONES NEWSWIRES
U.S. stock exchanges continued a round of system tests and preparations ahead of Friday’s greatly anticipated initial public offering of Facebook Inc. shares.
Nasdaq OMX Group Inc. (NDAQ), Facebook’s primary listing venue, held its second IPO systems test within a week and announced two more planned tests for customers, slated for Wednesday and Thursday, in the run-up to the offering. Separately NYSE Euronext (NYX) said its Arca electronic exchange unit planned to dedicate a trade-matching engine–the software that matches stock bids and offers–to provide the platform more flexibility in dealing with any quoting issues that should arise in the stock.  http://jlne.ws/K1Lrlf
Facebook options seen listed on May 29
By Doris Frankel, Reuters
Traders will have their first crack at using options to hedge their bets or speculate on Facebook shares in two weeks, when U.S. options exchanges expect to list contracts on the hot new stock. 
http://jlne.ws/KqXQUd 

CBOE warns that SEC probe could result in fine  
May 15 (Reuters) – A U.S. Securities and Exchange Commission probe into the way the operator of the Chicago Board Options Exchange polices itself could result in censure or a fine, CBOE Holdings Inc said in a regulatory filing.
“While we do not know the outcome of the SEC’s investigation, should it determine to act, the SEC could, among other things, censure CBOE, impose monetary or other penalties and require CBOE to change its compliance programs and procedures,” the Chicago-based exchange operator said in a little-noticed line included in a May 8 filing.
http://jlne.ws/JlYhhr 

International Securities Exchange and AlphaClone Announce Partnership to License and Promote Innovative Hedge Fund Position Replication Index   
NEW YORK and SAN FRANCISCO, May 15, 2012 – The International Securities Exchange (ISE), a leading US options exchange, and AlphaClone LLC, the leader in hedge fund position replication, today announced  their partnership to promote AlphaClone’s innovative hedge fund position replication index, the AlphaClone Hedge Fund Long/Short Index.  Their partnership will serve as a platform to license and promote AlphaClone’s proprietary hedge fund position replication approach to third parties seeking to provide access to alternative investment products.  

R.J. O’Brien Calls on Exchanges, Regulator to Heed Industry Feedback on Extended Hours for Grain and Oilseed Contracts 
Firm Recommends Trading Halt on 15 Days a Year When USDA Crop Reports Are Issued
CHICAGO, May 15, 2012 – R.J. O’Brien & Associates (RJO), the nation’s oldest and largest independent futures brokerage and clearing firm, today called on U.S. futures exchanges and the Commodity Futures Trading Commission (CFTC) to listen to feedback from farmers, food companies and commercial hedgers, and amend plans for the extended trading hours of grain and oilseed futures and options contracts.  The firm is recommending a halt in trading on the 15 days a year when the U.S. Department of Agriculture (USDA) issues comprehensive reports on crop production, acreage and quarterly stocks.
 http://jlne.ws/JsETRF

Internet IPO Puts Rise at Record Rate Before Facebook: Options 
By Nikolaj Gammeltoft and Cecile Vannucci
May 15 (Bloomberg) — As Facebook Inc. prepares its initial public offering, traders are boosting the cost of bearish options at a record rate for LinkedIn Corp. and four other Internet companies that sold shares in the past year. Puts trading 10 percent below shares of LinkedIn, Groupon Inc., Zynga Inc., Pandora Media Inc. and Yelp Inc. cost an average of 5.12 points more than calls 10 percent above on May 14, data on 30-day options compiled by Bloomberg show. That’s almost four times more than at the record low reached in April. http://jlne.ws/J6Td1k

Exchanges

NASDAQ OMX Corporate Solutions Launches Integrated Platform for Media Monitoring and Sentiment Analysis Media Intelligence Integrates Critical Mention Broadcast
Monitoring Service to Provide Real-Time Blanket Coverage Across All Media
NEW YORK, May 15, 2012 (GLOBE NEWSWIRE) — NASDAQ OMX Corporate Solutions today announced the launch of Media Intelligence, an intuitive SaaS (software-as-a-service) platform providing real-time media monitoring and analysis across the entire media spectrum of print, online, broadcast and social media for public relations and investor relations professionals. Media Intelligence is part of NASDAQ OMX Corporate Solutions, a NASDAQ OMX technology software business dedicated to helping public and private companies minimize risk, maximize efficiency and increase transparency through leading PR, IR and governance products. 
 http://jlne.ws/KYH76f

VIX Explodes To Three Month Highs (VXX, TVIX, VXX, VXZ, XIV)
Wall Street Sector Selector
VIX, the CBOE S&P 500 Options Volatility Index, also known as the “fear indicator,” blasted to multi-month highs today, climbing 9.95% to 21.87, now above its 50 day moving average and closing in on historical average levels. “20″ is widely considered the line in the sand between bull and bear markets, so sustained closing prices above today’s levels would point to the likelihood of higher VIX prices ahead.
http://jlne.ws/L89fcE

Technology

NYSE Beefs Up Electronic Systems For Facebook Debut 
By Jacob Bunge Of DOW JONES NEWSWIRES
NYSE Euronext (NYX) said its Arca electronic exchange unit will devote special resources to handle demand for Facebook Inc. shares in the social network’s public-market debut Friday. The company said Arca will dedicate a trade-matching engine–the software that matches stock bids and offers–to support the keenly-awaited flotation. The move comes as U.S. stock exchanges brace for a flood of investors seeking to trade in Facebook following its initial public offering, with some traders anticipating as many as 600 million shares in the company changing hands Friday.
http://jlne.ws/K3zFHE

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