Lead Stories

Goldman Says Options Traders Too Complacent Before OPEC Meeting
By Callie Bost – Bloomberg
Tranquility reigns in exchange-traded funds tracking oil and its producers. Too much, says Goldman Sachs Group Inc.
Decreasing levels of implied volatility on the United States Oil Fund LP and the Energy Select Sector SPDR Fund show options speculators see little prospect of turmoil in the commodity even as the Organization of Petroleum Exporting Countries meets in Vienna, according to Goldman Sachs derivatives strategists Katherine Fogertey and John Marshall. The lack of concern could backfire with a rush to purchase hedges after OPEC’s decision, they said.
jlne.ws/1dPgWVz

Is the ASX a good guardian of the once-thriving options market?
By Jonathan Shapiro – afr.com
Options, those curious creatures of the financial markets, are in the spotlight again, after broker BBY was tipped over the edge by client exposures in its options unit.
jlne.ws/1M7UQYR

***DA: This is a good summary of what is happening in the Australian financial sector. When market makers pull the plug and volume slides, but profit margins for the exchange continue to climb, one has to ask whose interests are first and foremost.

ICE Trade Vault Europe Approved by ESMA as Trade Repository for FX Derivatives
Press Release – MarketWatch
Intercontinental Exchange ICE, the leading global network of exchanges and clearing houses, announced today that the European Securities and Markets Authority (ESMA) approved ICE Trade Vault Europe Limited (ICE Trade Vault Europe) to extend its Trade Repository registration for the reporting of foreign-exchange (FX) derivatives trade data. The approval meets requirements of the European Market Infrastructure Regulation (EMIR). ICE Trade Vault Europe will assume the collection of FX derivatives data, which includes futures, options and forwards, with immediate effect.
jlne.ws/1MoHcBm

Winoptions.Com Binary Broker Launches a New Trading Platform
Press Release – PRNewswire
Winoptions.Com, a world leading brokerage company specializing in financial derivatives and binary options launches a new trading platform that will revolutionize the financial industry as it offers various trading methods like binary options trading, trading in CFD’s and Foreign Exchange trading in one place. Winoptions.Com Binary Options Broker also added a complete social trading environment allowing traders to automatically copy trades made by the best traders on its platform.
jlne.ws/1dPcG8C

***DA: But for every winoption there is a loseoption, so be careful while investing.

Exchanges

BATS Reports Continued Strong Market Share in May; Second-Best Month for U.S. Options Business, 21.2% U.S. Equities Market Share
Press Release
BATS Global Markets (BATS) today reported May data and highlights including the company’s best market share month since October 2013 in European equities and the second-best month in U.S. options.
jlne.ws/1dP4Hsb

ICE Trade Vault Europe Approved by ESMA as Trade Repository for FX Derivatives
Press Release
Intercontinental Exchange (NYSE: ICE), the leading global network of exchanges and clearing houses, announced today that the European Securities and Markets Authority (ESMA) approved ICE Trade Vault Europe Limited (ICE Trade Vault Europe) to extend its Trade Repository registration for the reporting of foreign-exchange (FX) derivatives trade data. The approval meets requirements of the European Market Infrastructure Regulation (EMIR). ICE Trade Vault Europe will assume the collection of FX derivatives data, which includes futures, options and forwards, with immediate effect.
jlne.ws/1dP6ddG

CME to amend trading hours for livestock outcry options contracts
By Theopolis Waters – Reuters
The CME Group, the world’s largest livestock trading exchange, will amend the open outcry trading hours on the Chicago Mercantile Exchange trading floor for cattle and hog options, the exchange said on Wednesday.
jlne.ws/1KGjnnE

Regulation & Enforcement

The SEC Brings Fund Reporting Into the 21st Century
By John Rekenthaler – Morningstar
Last month, the SEC released an important document that was years in the making.
jlne.ws/17WaCS6

ANNA: Major Changes Planned for CFI Identifier Used by Investors, Financial Firms and Regulators
Press Release – Digital Journal
At its annual ordinary membership meeting in Dublin, the Association of National Numbering Agencies today formally updated its membership regarding the changes to the Classification of Financial Instruments (CFI) expected to be published in Q3. The national numbering agencies which comprise the ANNA membership are tasked with issuing identifying codes for all new securities issuances in their jurisdictions. These codes include the International Securities Identification Number (ISIN) and the CFI, which provides more granular details on instrument structure and terms.
jlne.ws/1dPcRAK

SEC Bickering Stalls Mary Jo White’s Agenda
By Andrew Ackerman and Aruna Viswanatha – WSJ
Mary Jo White took the helm of the Securities and Exchange Commission vowing to “expeditiously” finalize its mountain of postcrisis rules. Two years later, that pledge has been thwarted by bickering among its five members.
jlne.ws/1dPa8HB

MIAX Options Exchange Rule Change Notice – FINRA Arbitration Rules
MondoVisione
FINRA has amended Rules 12214 and 12601 of its Code of Arbitration Procedure for Customer Disputes and Rules 12214 and 12601 of its Code of Arbitration Procedure for Industry Disputes.
jlne.ws/1IfSBCe

Technology

Tick, Tick, Tick: Changes For US Tech 100 at Nadex (E-mini NASDAQ 100 Futures)
By Darrell Martin – Benzinga
Effective immediately, the tick value has been improved for the US Tech 100 at Nadex.
jlne.ws/1M7UmSx

Euronext options hit by “critical” tech issue
By Alice Attwood – FOW
The exchange’s derivatives market was also hit by a technical problem Friday
Trading in AEX options on Euronext’s derivatives market was halted Thursday afternoon, less than a week after the exchange was hit by the latest in a series of technical problems.
A spokesperson for the Paris-based exchange Euronext confirmed the details of the outage Thursday which saw trading in the AEX index halted due to a “technical issue.”
“We are working to resolve this issue and we will provide an update as soon as possible regarding the expected pre-opening time and resumption of trading,” said the exchange in a statement.
jlne.ws/1dPnK5D

Strategy

Goldman’s Oil Trade: How to Profit on OPEC Move
By Steven M. Sears – Barron’s
The Organization of Petroleum Exporting Countries is widely expected to leave oil prices unchanged at Friday’s meeting. But what if OPEC surprises everyone, and investors all around the world find themselves on the wrong side of the incredibly crowded oil trade?
jlne.ws/1dP9Jou

How to Use Options to Hedge Risk in Your Investment Portfolio
By Skip Raschke – TheStreet
SDS is not the trading symbol for “Students for a Democratic Society.” Well, SDS was the abbreviation for that left wing, late 1960s antiestablishment organization. But things changed over the decades, and many people now think of the ProShares UltraShort S&P 500 ETF (SDS) when they hear “SDS.” Things change, except that I have yet to vote for anyone left of center.
When I was making markets, one rule I adhered to was to never short (or spread short) any option that I thought was “cheap”. In fact, if it felt cheap I wanted to own it. And, shorting theoretically cheap spreads is not the recommended path on the road to riches. What a concept.
jlne.ws/1dPeU7N

June 2017 Options Now Available For SPDR S&P 500 ETF
Forbes
Investors in SPDR S&P 500 ETF saw new options become available today, for the June 2017 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 743 days until expiration the newly available contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the SPY options chain for the new June 2017 contracts and identified one put and one call contract of particular interest.
jlne.ws/1M7WN7B

Education

Spread Basics (Part Of A Series)
By Darrell Martin – Benzinga
In many of the articles you see in this column, Nadex Spreads are often mentioned.
You probably have noticed the suggestion to use them when trading certain News Events when setting up an Iron Condor strategy. The purpose of this article is to clarify and solidify what a spread is in order to help you use it to your advantage when trading.
jlne.ws/1M7TRb5

Pin It on Pinterest

Share This Story