Volatility suppression eases fears of emerging markets contagion
Richard Jory – Risk Magazine
The suppression of emerging markets volatility has almost completely removed lingering fears of contagion. But when central banks ease quantitative easing measures and the instant mean reversion of the Vix stops, will the effect of EM volatility on the broader markets be any different than before?
Too Much Volatility or Not Enough Derails Strategies: Currencies
Liz Capo McCormick and Ye Xie – Bloomberg
Too much volatility for emerging-markets currencies — and not enough in the developed world — is stinging traders.
Increasing swings in exchange rates from Turkey to Hungary are wiping out profits in the carry trade, where investors buy higher-yielding assets funded by currencies with lower borrowing costs.
The Greatest Options Trade I Ever Saw
Jacob Mintz – Cabot Investing Advice
As a trader on the Chicago Board of Options Exchange (CBOE) for over 10 years, I witnessed and heard many unbelievable trading stories. There were stories of traders risking too much and losing everything, and traders retiring by the age of 25 having made their fortune though skill or luck.
Gold volatility reflects current state of uncertainty
Ole Hansen – TradingFloor.com
The turnaround in gold over the past week has left many recently established long positions battered and bruised. Currently, there is a raised degree of uncertainty as to what will happen next. Traders are torn between the potential support from a rise in geopolitical risks and the negative impact of rising US interest rates as the economy improves.
BitBeat: Bitcoin Less Risky? Currency Hedges Arrive
Paul Vigna and Michael J. Casey – The Wall Street Journal
It says something when an instrument like derivatives, which were so central in the Crash of 2008, could be seen as a ameliorating factor for bitcoin investing, but when you go from $13 to $1,100 and back to under $600, one thing is clear: that is not a ride most people’s hearts can handle.
Watching the VXX to Gauge Market Fear
Adam Warner – Schaeffer’s Investment Research
So far, 2014 has turned into a rather awful year for making fun of iPath S&P 500 VIX Short-Term Futures ETN (VXX), our old punching bag.
VXX listed in late January 2009 for the express purpose of fooling people into thinking they could buy CBOE Volatility Index (VIX) in exchange-traded note (ETN) form … I mean, allowing people without futures accounts to “own” a volatility ETN.
Panel to Mark the 10-Year Anniversary of VIX Futures Launch
Matt Moran – CBOE
Ten years ago at CBOE, on March 25, 2004, on the eve of the launch of futures on the CBOE Volatility Index (VIX), presentations on Volatility and Enhanced Returns were delivered by a 4-person panel comprised of Joanne Hill, Izzy Nelken, Gary Lahey, and Jon Najarian. There was quite a bit of excitement in the room as the presentations were delivered, as in previous years investors had requested a tradable version of the well-known and powerful VIX Index, but there also was uncertainty as to how the new VIX futures might be priced and hedged.
Bright Future for Unified Futures?
Kosaku Narioka – The Wall Street Journal
Japan’s main stock exchange enjoyed a trouble-free integration of its Tokyo and Osaka derivatives operations on Monday as it looks to improve its competitiveness and become Asia’s “chosen” bourse.
CBOE Is The Best Of The Exchange Options
Northrop Puckett – Seeking Alpha
While our last article discussed geopolitical events, this one touches closer to home.
People looking to own a company that profits off of market transactions can buy the Intercontinental Exchange (ICE), CME Group (CME), and even the Nasdaq (NDAQ). But there is another exchange stock that I think has a brighter future.
CBOE Holdings Announces Date Of First-Quarter 2014 Earnings Release And Conference Call
Press Release (CBOE)
CBOE Holdings, Inc. (NASDAQ: CBOE) will announce financial results for the first quarter of 2014 before the market opens on Tuesday, May 6, 2014. A conference call with remarks by CBOE Holdings, Inc. senior management will begin at 7:30 a.m. Central Time (CT).
A live audio webcast of the conference call, and the presentation that will be referenced during the call, will be available on the Investor Relations section of CBOE’s website at http://ir.cboe.com under Events & Presentations. The presentation will be archived on the company’s website for replay. In addition, participants may listen to the live conference call via telephone by using the dial-in numbers listed below.
Date: Tuesday, May 6, 2014
Time: 7:30 a.m. CT
Regulation and Enforcement
CFTC may propose futures block-trading limits, commissioner says
Neil Roland – MLex
US regulators may revive a futures block-trading plan similar to one drafted last year by Gary Gensler, then chairman of the Commodity Futures Trading Commission. The CFTC is considering proposing stricter limits on futures block trading than those now being set by futures exchanges, Commissioner Scott O’Malia said.
US CFTC may have broken law by suspending outside research-watchdog
Sarah N. Lynch – Reuters
The U.S. Commodity Futures Trading Commission may have broken the law when it suspended its outside academic research program in response to a 2012 complaint filed by the CME Group futures exchange, the agency’s internal watchdog determined.
SEC Probes Risks From Hackers Targeting Wall Street Firms
Dave Michaels – BloombergBusinessweek
The U.S. Securities and Exchange Commission will examine the exposure of stock exchanges, brokerages and other Wall Street firms to cyber-attacks that have been called a threat to financial stability.