Fed Move Spells Quieter Quadruple Witching
Kaitlyn Kiernan – The Wall Street Journal
Quadruple witching is upon us.
The trading phenomenon that occurs once a quarter has the potential to jolt markets. But after big news out of the Federal Reserve midweek, that day may be shaping up to be calmer than usual.
Quadruple witching ahead: Expect increased volatility and volume
Kate Gibson – CNBC
The usual increase in volatility and volume that typically comes along with quadruple witching—the last trading day for stock options on indexes, equities and futures, with futures themselves also expiring—on Friday will be accompanied by the S&P 500’s quarterly rebalancing.
Investing in Volatility [Video]
Stutland Volatility Group Managing Director Dan Deming and Julie Hyman focus on the unusual volatility of the VIX in “On The Markets” on Bloomberg Television’s “Street Smart.”
On Tapering, Options Speculation, and Short-Term Volatility
Adam Warner – Schaeffer’s Investment Research
So the Fed announced plans to taper, and all we got was new all-time highs in the market.
Surprised? Yes, somewhat. Not that they tapered, nor that we didn’t decline on the taper. But I certainly didn’t expect such a rip-roaring rally on the potential news.
Options Bootcamp 37: Our Holiday Wish Lists
Mark S. Longo – The Options Insider
– John – Consolidation in the exchange market place.
– Mark – Better spread execution in the options market in 2014.
– Dan – Continued growth in the options business.
– Mark – Financial/mainstream media would abandon its perception that options are dangerous, complex risk-additive instruments.
**What? No Playstation 4 on the list? -JB
Turning of the Tide: Amid Improving Outlook for Global Equities, U.S Investors Expect to Increase Their Trading Volume Entering 2014
Press Release (via MarketWatch)
TradeStation, a Monex Group company, today announced the results of the “Monex Global Retail Investor Survey, Vol. 11,” revealing that a more upbeat outlook for global equities markets has U.S. investors poised to increase their trading volume entering 2014…
Moreover, investors’ growing optimism extends beyond stocks to options, futures and exchange-traded funds (ETFs). Some 76% of TradeStation customers view options and futures as attractive investments for 2014, while 68% were similarly positive on next year’s outlook for ETFs.
Secret Currency Traders’ Club Devised Biggest Market’s Rates
Liam Vaughan, Gavin Finch and Bob Ivry – Bloomberg
It’s 20 minutes before 4 p.m. in London and currency traders’ screens are blinking red and green. Some dealers have as many as 50 chat rooms crowded onto four monitors arrayed in front of them like shields. Messages from salespeople and clients appear, get pushed up by new ones and vanish from view. Orders are barked through squawk boxes.
Videocast: Floor seen at 13 in VIX
Modest investors not convinced stocks are the place to be
U.S. investors of modest means are not enthusiastic about the stock market when asked if it is a good vehicle for growing wealth, Gallup said.
In a quarterly poll conducted Nov. 7-11, only 37 percent of respondents indicated the stock market was a good or excellent way to increase wealth.
**I read yesterday that Warren Buffet made about $37 million per day this year. Hard to compete with that. -JB
NYSE Euronext Announces 2015 Holiday Calendar and Early Closings
Press Release (NYSE)
NYSE Euronext today announced the 2015 holiday calendar and early closing dates for its U.S. cash equity markets: New York Stock Exchange, NYSE MKT and NYSE Arca. These dates also apply to the NYSE Bonds, NYSE Amex Options and NYSE Arca Options markets. It previously announced the 2014 holiday calendar and early closing dates, which are also set out below.
Regulation and Enforcement
U.S. spat looms with foreign regulators over swap rules
Douwe Miedema – Reuters
The United States is on a collision course with regulators abroad as it plans to force foreign banks to comply with a host of new rules for risky derivatives, two sources close to the European Union said on Friday.
Sharon Bowen to Be Obama Nominee to Follow Chilton at New CFTC
Silla Brush – BloombergBusinessweek
Sharon Y. Bowen, a securities lawyer at Latham & Watkins LLP, will be nominated by President Barack Obama as a member of the Commodity Futures Trading Commission.
50 Shades of Dark Pool
John D’Antona Jr. – Traders Magazine
Dark pools are going to be less dark.
That’s due in part to recently proposed rules from FINRA that will require operators of registered alternative trading systems-also known as dark pools-to report to the regulator on a weekly basis the volume of every security they trade. FINRA would then publish that data on a delayed basis on its website. For larger stocks, it would report the data after a two-week delay. For smaller stocks, it would report the data after a four-week delay.
OPRA Seeks New SIP Operator, Enlists Jordan & Jordan to Run RFP
Max Bowie – WatersTechnology
The Options Price Reporting Authority has begun a tender process for a technology supplier to manage the SIP (securities information processor) that collects data from US options exchanges, calculates a best bid and offer, and distributes OPRA’s consolidated feed of options trade and quote data.
How to Reduce the Cost of Purchasing “Insurance” Against a Stock Market Decline
Mark Melin – The Motley Fool
The two most notable differences between institutional and individual investors might their focus on risk management and their understanding of market cycles. Many professional investors are saying 2014 could be the year for risk management to take center stage.
3 Tips on How to Take a Stress-Free Holiday Break From Investing
Dan Caplinger – Daily Finance
Taking vacation during the holidays get together with family is a time-honored tradition. But if you spend more time than you’d like to admit following the ups and downs of your favorite stocks, you might get nervous at the prospect of letting your portfolio fly on autopilot for a week or longer.