JLN Options: Livevol Receives Private Funding from Institutional Investor

May 23, 2012

Lead Stories Livevol Receives Private Funding from Institutional Investor
Press Release
Livevol Inc., a leading provider of real-time and historical data solutions to professional and retail equity and index option traders, today announced that it has raised private funding from an institutional investor to fund the acceleration of Livevol’s development.
The Company plans to use the proceeds to expand its data, analytics and brokerage services. Merriman Capital, Inc., a wholly owned subsidiary of Merriman Holdings, Inc. (otcqx:MERR), acted as the sole advisor in the transaction.
Ronald L. Chez was the lead institutional investor in the private transaction. He will join Livevol’s board of directors as part of his involvement. Chez is an active investor in public and private rapidly growing small cap companies. He serves on several boards of public and private companies.
**Interesting news from Livevol. VXN Futures Debuting Today
Jill Malandrino, The Street
Today the CBOE Futures Exchange, LLC (CFE) will launch trading on CBOE NASDAQ-100 Volatility Index(SM) (VXN(SM)) futures contracts. VXN is a key measure of market expectations of near-term volatility conveyed by NASDAQ-100 Index (NDX) option pricing. The structure of the futures contracts is the same as those on the widely followed CBOE Volatility Index® (VIX). Initially there will be only four consecutive monthly contracts listed which differs from VIX futures which have contracts with expirations trading for the next nine months.
http://jlne.ws/MoIg9H Rupee hits record low as Fitch cuts Japan rating
Bloomberg (via Gulfnews.com)
Rupee hits record low as Fitch cuts Japan rating “The Reserve Bank of India said on Monday that outstanding currency futures and options contracts held by a bank shouldn’t exceed $100 million or 15 per cent of the total such agreements, whichever is lower, on local exchanges. Lenders can’t offset derivative trades against those in the over-the-counter market, the monetary authority said in a statement. “
**Government intervention in the Indian markets is not a good thing. Rupee Declines to a Record Low on Concern Greece Will Leave Euro
Jeanette Rodrigues, Bloomberg
India’s rupee dropped to a record low as investors favored the perceived safety of the dollar over emerging-market assets on concern Greece will leave Europe’s currency union…
The rupee declined 0.5 percent to 55.6475 per dollar as of 9:28 a.m. in Mumbai, according to data compiled by Bloomberg. It fell to an all-time low of 55.8275 earlier. The rupee’s one- month implied volatility, a measure of exchange-rate swings used to price options, rose 80 basis points, or 0.8 percentage point, to this year’s high of 14.3 percent.
http://jlne.ws/MoHhGK Gold Investors Seek Silver Lining
Some investors are fighting the tide of lower gold prices.
One reason gold options are attractive is they offer a cheap way for individual investors to wager on the precious metal. But the size of the recent surge in positions suggests large market participants, such as hedge funds, are wading in, said Chris Jacobson, chief derivatives strategist at Susquehanna Financial.
http://jlne.ws/MoCCoe OptionsCity Software launches Algo Store, the ‘iTunes’ of trading world
Press Release
OptionsCity Software, a leading provider of electronic trading solutions,announced today that it has launched Algo Store, an online algorithm repository and collaborative environment that provides a market for traders and developers to create, purchase, and download trading algorithms, available at algostore.optionscity.com.
Through Algo Store, third-party developers are able to write and sell their self-authored algorithms, or components of algorithms, to traders around the world. The communal aspect is bolstered by the inclusion of developer profiles, a ratings system, an interactive social forum, and the prospect to become an OptionsCity Certified Developer, a title granted to top-rated quantitative analysts and developers.


CFTC: Former Chicago Trader Banned, To Pay $600,000
Ben Fox Rubin, Dow Jones Newswires
A former Chicago trader was ordered to pay a $600,000 civil penalty and permanently banned from the commodities industry in connection to an elaborate scheme to trade options without posting the required margin, the U.S. Commodity Futures Trading Commission said.
Specifically, the order found that Whitney perpetrated a margin avoidance scheme with out-of-the-money options, which are options with no intrinsic value, by knowingly making false and misleading statements to a representative of the CME, representatives of futures commission merchants, and others.


Facebook: Shorting Through Options
John J. Critchley, Jr., Seeking Alpha
The Facebook (FB) IPO came in like a lion and is going forward like a lamb. Do you want to short the most over-hyped IPO of all time, but can’t borrow the stock? What’s the investing public to do? Use options.
On May 29th, the options exchanges will offer FB options. In the past, it might be months before a hot IPO has options listed on them. Nowadays, in the 24/7 interconnected investing world of today, there is no patience; no waiting for the “right time.” When these options become eligible for listing in a little over a week, they will trade.

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