Observations & Insight
Under New Management: Alan Campbell Looks To Expand Interest In Bloomberg Commodity Index
Jim Kharouf – JLN
Sometimes you just need a change of scenery.
The Bloomberg Commodity Index, or BCOM, was taken on by Bloomberg in a partnership with UBS last July and now has several months as its new administrator. The index, previously known as the Dow Jones-UBS Commodity Index, is traded as a futures contract at CME Group and Eurex, as well as as an ETF, but it has much more potential ahead of it, said Alan Campbell, global product manager, head of buisness development of Bloomberg Indices.
“The capability is already there to trade the product,” Campbell told John Lothian News. “We need to do a job in educating people on the different types of access points.”
ECB’s Frontloading Reawakens Stock Bulls Stung by April Drop
By Inyoung Hwang and Trista Kelley – Bloomberg
A shock announcement from the European Central Bank is reassuring investors that the equity rally they were betting on is back on track.
The Euro Stoxx 50 Index jumped 2.7 percent in two days, the most since January, and traders are wagering on further gains. The volume of bullish options on the gauge this month is the highest since June 2012 relative to bearish contracts. That month marked the start of a rally that sent the region’s stocks up as much as 85 percent.
**DA: Front running the front loading.
Airline Swoon Fuels Manic Option Trading on Southwest Airlines Co, American Airlines Group Inc., and Delta Air Lines, Inc.
By Andrea Kramer – Schaeffer’s Research
Airline stocks are getting murdered this morning, after Southwest Airlines Co warned of a drop in current-quarter passenger unit revenue. Against this backdrop, option traders are blitzing LUV, as well as sector peers American Airlines Group Inc and Delta Air Lines, Inc.
***DA: As we hit the send button, UAL and Southwest down 8 percent; American down about 7 percent and Delta is doing relatively better, down only 5 percent. Mayday! Mayday!
Markets bracing for second coming of Y2K as leap second fever takes hold
By David Rogers – The Australian
Australian financial markets officials have been quietly working to mitigate any unintended consequences from what many are dubbing the next Y2K bug — a “leap second” due to be included in international time next month.
***DA: Unless one is on audit trail or compliance duty, I predict leap second to be a big yawner.
Rushing to a Different Dividend Growth ETF
By Todd Shriber – ETF Trends
Close to 90 new exchange traded products have come to market this year, but one unique exchange traded fund that debuted in late 2014 is finding sudden success.
Eurex: Weekly Euro Bund Options Successfully Launched – Average Daily Volume Around 9,000 Contracts So Far In May
The launch of Euro Bund options with weekly expiration dates on the international derivatives market Eurex Exchange (a subsidiary of Deutsche Börse Group) on 20 April 2015 has met with considerable demand. The average daily traded volume since launch has reached more than 8,000 contracts. Open interest peaked above 61,000 contracts.
MGEX Adds Wells Fargo Securities, LLC as a New Clearing Member
MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), and Wells Fargo & Company are pleased to announce that Wells Fargo Securities, LLC has joined as MGEX’s newest clearing member.
Regulation & Enforcement
Financial Stability Oversight Council Releases Fifth Annual Report – Council Votes To Further Enhance Transparency And Governance
The Financial Stability Oversight Council (Council) today unanimously approved its 2015 annual report, which was developed collaboratively by the members of the Council and their agencies and staffs. This annual report, which is the Council’s fifth, provides a consolidated and unified view of the key challenges facing our financial system and offers a road map of the Council’s key priorities for the upcoming year.
SIFMA Outlines Five-Part Effort To Address Cyber Threats In Testimony To Congress
SIFMA president and CEO Kenneth E. Bentsen, Jr., today testified before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit hearing entitled, “Protecting Critical Infrastructure: How the Financial Sector Addresses Cyber Threats.”
Risk Data Aggregation: Why Regulators and Banks Are Finally Paying Attention
By Mayra Rodriguez Valladares – Practical Law, Thomson Reuters
A summary of the risk data aggregation principles and requirements applicable to banks.
The $10 Hedge Fund Supercomputer That’s Sweeping Wall Street
By Kelly Bit – Bloomberg Business
It sounds like the mother of all spreadsheets: 1 million rows, 1 million columns — 1 trillion entries in all. Fortunately, Braxton McKee isn’t using Excel. Instead, he’s tapping into the cloud to crunch all that market data on the cheap with software he built that learns as it goes.
Tour Trading Technologies’ office: Pretty patents and a bar full of history (slide show)
Trading Technologies, which builds technology for derivatives traders, has been around for more than 20 years. A year ago, the company consolidated three floors into two at 222 S. Riverside Plaza. CEO Rick Lane took Blue Sky for a spin.
Euronext Soothed Skeptics When CEO Quit by Sticking to Strategy
By John Detrixhe – Bloomberg Business
Euronext NV management and investors were surprised when Dominique Cerutti said he was leaving the European exchange operator. They appear to have gotten over it.
Market Tools Help Identify, Manage Margins
By Chip Whalen – Ethanol Producer Magazine
Managing ethanol plant margins is a challenging endeavor as the factors affecting input costs and revenues are constantly changing and often pulling in different directions to the detriment of the plant’s profitability.
All-Time Highs Aren’t Creating Excitement
By Helene Meisler – The Street
I was asked on Tuesday why the market is at all-time highs and no one is excited. Why does everyone seem to have one foot out the door, or at least an eye on bailing rather quickly? After all, this is not what typically transpires at new highs in the market. Typically, folks get giddy.
Shift In TYVIX Term Structure
By Catherine Shalen – CBOE Options Hub
CBOE began publishing the term structure of TYVIX on April 24, 2015, providing the market with estimates of expected Treasury volatility through the first three expirations of CME OZN options (options on 10-Year Treasury note futures).