Lead Stories

Know Your Options: If You Build It, They Will Come
Joy Rosenstein – Fidessa Corporation (via TABB Forum)
As buy-side traders increasingly embrace options both as a profit-making strategy and as a way to hedge their portfolios, broker-dealers must add options-trading capabilities to remain competitive. Here are 5 questions firms must answer before building an options offering.
http://jlne.ws/16EMpym

‘Bernanke Put’ is Back in Play
Kaitlyn Kiernan – The Wall Street Journal
The so-called “Bernanke Put” is back in play…
The idea is that Mr. Bernanke and those policies will protect the market against downturns, much as put options, which grant the right to sells shares at a set price, and can protect stock portfolios in the event of a slide.
http://jlne.ws/1aJ0Usx

VIX ETFs Continue Downward Spiral: Weekly VIX ETF Report [July 14, 2013]
Wall Street Sector Selector
VIX ETFs continue to decline after Bernanke bonanza and new equity market records.
http://jlne.ws/16EMeDf

Options Trades Spiked on Leap Ahead of AT&T Deal 
Kaitlyn Kiernan – The Wall Street Journal
News broke Friday after the close that AT&T has agreed to buy prepaid-wireless company Leap Wireless. Some traders appear to be in place to benefit from some very conveniently timed purchases.
Leap options saw their most active trading day of the year Friday at more than five-times the daily average over the past month, according to options-data firm Trade Alert LLC.
http://jlne.ws/16EJHZI
**Again?  Really?  Seems like this kind of thing has been happening more often recently.  Maybe just confirmation bias. -JB

There’s A Lot Of Top-Shelf Economic Data Coming Up
Joe Weisenthal – Business Insider
After a quiet week for the economy, the coming week brings another fresh batch of data.
http://jlne.ws/1aJ5sPz

Can Hedge-Fund Advertising Lead to Better-Informed Investors?
John Kimelman – Barron’s
Many pro-consumer politicians and members of the financial media fear that advertising will allow many lesser funds to sugarcoat mediocre or even downright abysmal perfomance. That’s a well-placed concern, given how one-sided most advertising is.
But the concern is probably overstated.
http://jlne.ws/16EP9f2

The Taipei Foundation of Finance and The Options Industry Council Sign Content Licensing Agreement
Press Release (OIC)
The Taipei Foundation of Finance (TFF) and The Options Industry Council (OIC) announced today they have entered into a content licensing agreement to develop an educational program for financial industry professionals and investors in Taiwan and China.
http://jlne.ws/16EMBNZ

Exchanges

‘Great Taper’ trades take off
Tim Cave and Anish Puaar – Financial Times
The US Federal Reserve’s planned shift in its economic policy, along with the associated spike in volatility (see chart), has been a boon for operators of trading platforms.
http://jlne.ws/16EO1Iu

Highlights of Q2 in fixed income futures & options
Press Release (Eurex)

Following the trend from the first quarter of 2013, our fixed income products continued to display strong growth in the second quarter of 2013, especially the futures on French Long-Term Government Bonds (FOAT) and Italian Long-Term Government Bonds (FBTP).
http://jlne.ws/1aJ5eYN

Regulation

Reckless Banking, Inadequate Rules
The Editorial Board – The New York Times
Gary Gensler, the reform-minded chairman of the Commodity Futures Trading Commission, got the best deal he could on Friday, when the commission voted 3 to 1 to approve guidance on how new rules on derivatives will apply internationally, as required under the Dodd-Frank financial reform law.
http://jlne.ws/16EI9yR

SEC lets big fish go while prosecuting Fab
Terry Keenan – New York Post
Remember Fabrice “Fabulous Fab” Tourre, the young bon vivant and Goldman Sachs derivatives trader whose boastful e-mails made him a convenient punch line back in 2010?
http://jlne.ws/13diJud

CTFC delays derivatives oversight overseas
Marcy Gordon – AP Business (via USA Today)
A policy allowing a U.S. agency to regulate derivatives trading overseas to help reduce risks to the global financial system will be delayed under a vote Friday.
http://jlne.ws/16ELHBc

F&O currency volume slumps as Sebi curbs speculative trade [India]
The Economic Times
Volumes in currency derivatives market have fallen sharply since Sebi stepped in last week to curb speculative trades, even as some commodity brokers are being probed for possibly manipulations in forex trading.
The data shows that average daily volumes for currency options have fallen by as much as 79 per cent for one of the exchanges so far in July, but another bourse have witnessed a hefty drop of only 35 per cent.
http://jlne.ws/16EN4j6

Options Education

How Hedge Fund Managers Use Equity Options
Stuart Fieldhouse – MoneyShow.com
One of the attractions of volatility trading is that the hedge fund manager can profit on a given index whether it goes up or down by using options, writes Stuart Fieldhouse of the Options Industry Council.
http://jlne.ws/16ENfuM

Strategy

Pretzel Logic at the Fed
Steven M. Sears – Barron’s
Don’t view the decline in the VIX as an all-clear sign for stocks. Betting on an earnings bump for CBOE.
http://jlne.ws/14Ut0eA

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