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MIAX Receives Approval Order from the United States Securities and Exchange Commission to Become Newest Equity Options Exchange; Trading to Commence on December 7, 2012
Press Release
MIAX Options Exchange (“MIAX”) announced today that on December 3, 2012, it received an Approval Order from the United States Securities and Exchange Commission (“SEC”) of its Application for Registration as a National Securities Exchange, and thus MIAX will act as its own self-regulatory organization. [Release No. 34-68341; File No.10-207.]  Trading on MIAX, a fully electronic options trading exchange, is scheduled to commence on December 7, 2012.

PowerShares Readies ‘Downside Hedged’ ETF
Tom Lydon, ETF Trends
In response to the growing demand for strategies that mitigate risk and volatility, Invesco PowerShares will launch a new actively managed exchange traded fund that hedges downside risk with VIX options and cash positions.

Wall Street flat on lack of “fiscal cliff” progress
Chuck Mikolajczak, Reuters
Stocks fluctuated between small gains and losses on Tuesday after remarks by President Barack Obama on budget talks dented optimism a solution could be found to prevent the economy from falling into recession.
**The CBOE VIX index was at 17.36 but has not traded above 20 since July after it hit a 2012 high near 28 in June. The VIX’s 10-day Average True Range, an internal volatility measure, is at its lowest since early 2007. — SR

Goldman Sees Mutual Funds’ Edge in Options Trading
Brendan Conway, Barron’s
Mutual funds’ performance woes and investor withdrawals are well documented. Also well known are the unfavorable comparisons one can make versus less costly exchange-traded funds.
Less well known: A subset of mutual funds is turning to the options market to offer something that investors can’t easily replicate on their own.

The Options Industry Council Announces Options Trading Volume Down 3 Percent In November
Press Release (OIC)
The Options Industry Council (OIC) announced today that 335,527,473 contracts were traded in November, which is off 2.57 percent compared to last November when 344,377,310 contracts were traded.

OCC Reports Cleared Contract Volume Flat in November as Futures and Securities Lending Activity Rise
Press Release (OCC)
OCC announced today that total cleared contract volume reached 339,206,527 contracts in November, a 2 percent decrease from the November 2011 volume of 346,584,214 contracts. While overall cleared contract volume remained flat last month, OCC reported a significant rise in futures and securities lending activity. OCC’s year-to-date cleared contract volume reached 3,724,984,827 last month, down 13 percent from 2011, but an improvement from the 14 percent decline recorded after October.

High Frequency Trading Arms Race Has Plenty of Drawbacks
Scott Patterson, The Wall Street Journal
A new paper co-written by the chief economist of the Commodity Futures Trading Commission calls into question the turbocharged arms race behind the controversial practice of high-frequency trading.
**Nobody really wins in an arms race, right? — SR 

New York futures broker fined $650,000 for not segregating funds
Jeanine Prezioso, Reuters
A federal court has ordered a futures brokerage run by well-known New York trader Mark Fisher to pay $650,000 for not properly segregating customer funds following a complaint filed by the country’s top commodity regulator.
** One would think after MF Global and Peregrine that companies would be getting scrupulous about this. –JB


Total VIX Futures Volume Reaches New All-Time High In November
Press Release (CBOE)
The CBOE Futures Exchange, LLC (CFE) announced today that total monthly trading volume in futures on the CBOE Volatility Index (VIX) reached an all-time high for a third consecutive month in November 2012.  The record trading activity in VIX futures also drove total volume at CFE to a new all-time high. 

Eurex Exchange launches derivatives trading system
Press Release
Eurex Exchange, the derivatives arm of Deutsche Börse Group, has launched its new trading system.
“We believe this ‘next generation’ system will substantially change the way traders and investors access the world’s most dynamic markets, and it will establish a clear competitive advantage for our participants,” said Jürg Spillmann, member of the Eurex Executive Board and responsible for IT & Operations.

Options Exchange Marketshare – November 2012
Press Release (The Options Clearing Corporation)

November 2012 Total Options Marketshare:
AMEX-                 14.30%
BATS-                     3.58%
BOX-                       3.04%
CBOE-                   24.95%
C2-                          1.45%
ISE-                        15.85%
NOBO-                      .91%
NSDQ-                    5.61%
NYSE Arca-           11.29%
OMX PHLX-         19.03%

November 2011 Total Options Marketshare:
AMEX-                  14.50%
BATS-                      3.15%
BOX-                        3.51%
CBOE-                    24.41%
C2-                            1.40%
ISE-                          17.37%
NSDQ-                     4.32%
NYSE Arca-           11.49%
OMX PHLX-           19.84%

November 2012 Equity Options Marketshare:
AMEX-                  15.73%
BATS-                      3.95%  
BOX-                        3.35%
CBOE-                    17.86%
C2-                            1.56%
ISE-                         17.32%
NOBO-                      1.01%
NSDQ-                     6.17%
NYSE Arca-           12.35%
OMX PHLX-          20.70%

November 2011 Equity Options Marketshare:
AMEX-                 15.64%
BATS-                      3.41%
BOX-                       3.81%
CBOE-                   18.41%
C2-                            1.49%
ISE-                        18.75%
NSDQ-                    4.68%
NYSE Arca-          12.43%
OMX PHLX-         21.38%

ISE Partners with PureFunds and Factor Advisors to Launch Three New ETFs
Press Release
The International Securities Exchange (ISE) today announced the launch of three new exchange traded funds (ETFs) in partnership with PureFunds: PureFunds ISE Diamond/Gemstone ETF (NYSEArca: GEMS); PureFunds ISE
Mining Service ETF (NYSEArca: MSXX); and PureFunds ISE Junior Silver ETF (NYSEArca: SILJ). All three ETFs track proprietary indexes developed by ISE. The ETFs began trading on November 28th.
http://jlne.ws/11OAWvW (PDF)

ISE Reports Business Activity for November 2012
Press Release
The International Securities Exchange (ISE) today reported average daily volume of 2.5 million contracts
in November 2012. This represents a decrease of 11.1% compared to November 2011. Total options
volume for the month was 53.2 million contracts. ISE was the second largest U.S. equity options
exchange in November with market share of 18.2%*.

CBOE Holdings Reports November 2012 Consolidated Trading Volume
Press Release (CBOE)
CBOE Holdings, Inc. (NASDAQ: CBOE) reported today that November 2012 consolidated trading volume for options contracts on Chicago Board Options Exchange (CBOE) and C2 Options ExchangeSM (C2SM) and futures contracts on CBOE Futures Exchange SM (CFE) totaled 91.31 million contracts.

CME Daily Trading Volume Slumps in November From Year Before, Up From October
Saabira Chaudhuri, Dow Jones Newswires (via Fox Business)
CME Group Inc. (CME) saw its trading volume pick up last month from October, although it fell sharply from a year before.
Daily volume at the world’s largest futures-market operator averaged 11 million contracts last month, up 12% from October but down 16% from November 2011.

MGEX Reports Strong Month Over Month; Year Over Year Growth
Wisconsin Ag Connection
The Minneapolis Grain Exchange reported that its November 2012 total volume reached 129,179 contracts traded. This is a 21 percent increase from October 2012 and a 19 percent increase from November 2011.

KCBT Sees Record-Breaking Volume in November
Wisconsin Ag Connection
During the month of November, the Kansas City Board of Trade HRW wheat futures contract and the exchange as a whole broke all previous November monthly volume records.


Exchanges to Ask SEC to Delay Audit-Trail Deadline
Nina Mehta, Bloomberg
U.S. stock and options market operators and an industry regulator plan to ask the Securities and Exchange Commission to extend the deadline for when they must submit a plan for a comprehensive market oversight system.

‘Paid-For-Market-Making’ Deadline Looms
Peter Chapman, Traders Magazine
The Securities and Exchange Commission is set to decide by Dec. 8 whether to approve proposals by the Nasdaq Stock Market and NYSE Arca to permit sponsors of exchange-traded funds to pay broker-dealers for making a market in their securities.


CBOE moves to Equinix New York data center campus
Equinix, Inc., the global interconnection and data center company, today announced that CBOE Holdings, Inc. — home of the largest and oldest U.S. options exchange, Chicago Board Options Exchange (CBOE) ― is moving its CBOE Command trading engine platform to the NY4 International Business Exchange (IBX) data center in Secaucus, N.J.

BATS Chi-X Europe Expands Access To Risk Management And Kill Switch Tools
Press Release
BATS Chi-X Europe, the largest pan-European equities market operator by market share and notional value traded(1), today rolled out a suite of risk management tools available to all of its trading participants at no charge.
The risk management tools, which had previously only been available to participants that provide sponsored access to their clients, provide BATS Chi-X Europe trading participants with pre-trade risk protection as a supplement to their internal risk controls.

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