LEAD STORIES

Nasdaq Market Halts Trading
The Wall Street Journal
Nasdaq OMX Group Inc. officials scrambled Thursday to get trading resumed and to figure out what had happened. U.S. stock-market officials and officials at the Securities and Exchange Commission convened a conference call shortly after the outage began, which was continuing as Nasdaq officials worked to resolve the problem, people familiar with the discussions said.
http://jlne.ws/19MvmC2
**I really would not want to be the IT guys at NASDAQ just now. I have a feeling there is going to be hell to pay for this one.  -JB

Nasdaq prepares to reopen after glitch causes shutdown
Chuck Mikolajczak and Rodrigo Campos – Reuters
Trading in a large part of the U.S. market came to a halt for much of Thursday after an unexplained issue shut down trading on Nasdaq-listed securities, the latest black eye for the U.S. securities trading business.
http://jlne.ws/13Unfvc

NASDAQ Outage but Now With More Nazis (humor)
YouTube
http://jlne.ws/13UlCxB
**I laughed. -JB

Videocast: VIX pits quiet but nervous
optionMONSTER
http://jlne.ws/13UoIBz
**Long tailed cat in a room of rocking chairs. -JB

U.S. options exchanges wrap up review of errant options trades
Reuters
U.S. options exchanges on Wednesday wrapped up their review of a flood of erroneous options trades that roiled the market the previous day, and were linked to a computer trading glitch at Goldman Sachs Group .
http://jlne.ws/13Tm7rD

Options Market Has Biggest Disruption Since April
Michael P. Regan, Nick Taborek and Alex Barinka – BloombergBusinessweek
When Scott Maidel of Russell Investments answered the phone 20 minutes after the start of U.S. equity trading on Aug. 20, there was a Goldman Sachs (GS:US) Group Inc. employee on the line with a request: stop sending orders for stock options.
http://jlne.ws/19MweGx

Goldman assessing fallout from options trading glitch
Lauren Tara LaCapra and Doris Frankel – Reuters
Goldman Sachs Group Inc is assessing the financial damage caused by a trading glitch that led to a flood of erroneous options trades, as U.S. regulators began looking into what caused the problem.
http://jlne.ws/19Myf5F

Now the NYSE says it is tracking trading errors
John Carney – CNBC
Yesterday morning, I was told by an NYSE spokesman that the exchange didn’t keep historical records of trading errors and busted trades. People at the CBOE and the Nasdaq said that they weren’t sure if records existed or not but they’d get back to me if they did.
http://jlne.ws/13Uo7js

Volatility Bets Back on the Rise
Brendan Conway – Barron’s
Just when it appeared investors might be ridding themselves of an obsession, they’re right back into the heavy use of complex volatility-trading tools.
http://jlne.ws/19Mxd9I

EXCHANGES

MIAX Options Exchange Announces Equity Rights Program For Members of the Exchange
Press Release (MIAX)
The MIAX Options Exchange (“MIAX” or the “Exchange”) announced today that it anticipates implementing an equity rights program for Exchange members (the “Program”). Under the Program, participating Exchange members would be issued units representing the right to acquire equity in the MIAX’s parent holding company, Miami International Holdings, Inc., in exchange for a cash payment and the achievement of certain volume thresholds on the Exchange over a 23 month period.
http://jlne.ws/19MCb6B (PDF)

REGULATION & ENFORCEMENT

Options Error Puts Spotlight on Electronic-Trading Rules 
Christian Berthelsen – The Wall Street Journal
An options-trading mishap this week could bolster efforts by the Securities and Exchange Commission to more closely regulate systems that handle electronic trading, a push that exchanges and other financial-market participants have pushed back against.
http://jlne.ws/153jd9X

 

TECHNOLOGY

Traditum Group Selects OptionsCity Metro for Market Making
Press Release (OptionsCity)
OptionsCity Software, a leading provider of electronic trading solutions, today announced that Traditum Group, a diversified proprietary trading firm specializing in market making, has adopted OptionsCity Metro for its energy, grains, and soft commodities trading operations.
http://jlne.ws/13UpWNc

OPTIONS EDUCATION

VIX Expiration: A Word of Warning
Adam Warner – Schaeffer’s Investment Research
So what does VIX Expiration look like? Glad you asked.
Remember that expiring CBOE Volatility Index futures and options cash settle based on the opening price. But it’s not really the opening price of VIX … rather, it’s the calculated value of VIX based on the opening price of each qualifying SPX option.
http://jlne.ws/13UoAlE

STRATEGY

Option Strategies For The Fall  
Jim Bittman, Senior Instructor, The Options Institute At C.B.O.E. (via Investor’s Business Daily)
The frequently fearsome fall months are approaching and many investors are contemplating what to do. They may worry that they are too heavily invested in equities, yet they may be reluctant to sell because of how well stocks have performed recently.
http://jlne.ws/19MxARO

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