LEAD STORIES

Nasdaq system at center of massive outage has hiccup
John McCrank – Reuters
Nasdaq OMX Group said the system at the center of the Nasdaq exchange’s three-hour trading halt on August 22 had a six minute outage on Wednesday for a small number of stock symbols, but the issue had been resolved and trading was not affected.
http://jlne.ws/15ZnbOG
**One of these days we will not stand for this sort of thing anymore…maybe.  -JB

RegSCI unlikely to prevent exchange failings – Tabb
John Bakie – The Trade USA
Reputational issues are more likely to provoke exchanges to reform their technology than regulation, according to Larry Tabb, CEO of research consultancy TABB Group.
http://jlne.ws/1a7sWKN

Should Investors Ignore the ‘Flash Freeze’?
Richard Satran – US News
Should you worry about the impact of such untimely market shutdowns? “Flash” events – those wild swings spurred by a combination of volatile algorithmic trades and old-fashioned herd mentality – rekindle fears of the market crash of 2008 and other financial calamities. But most of the one-day disruptions, either from weather or computers, end up having little lasting impact. The biggest danger for investors is to overreact to the scary headlines.
http://jlne.ws/1dHLiWE

VIX Futures Fading Market Fear
Mark Sebastian – The Options Insider
While yesterday turned from extremely positive to a bit of a wash day, I think there is one important take-away.  On Friday,  VIX futures were terrified of something happening in Syria over the long weekend.  Now, four days later,  VIX futures are not buying into VIX movement like they were on Friday.
http://jlne.ws/1dHKalW

Timing of bullish Nokia options trades raises questions
David Gaffen – Reuters
A flurry of bullish bets on Nokia just before markets closed on Friday are in line to pay off handsomely as a result of Microsoft’s move to buy the Finnish company’s handset business, and has once again raised questions about suspicious timing of such trades.
http://jlne.ws/1a7s7Sl
**I’ve lost track of how many times this sort of thing happens (unusually well timed options trades immediately before a takeover announcement).  Kinda hard to miss yet people keep doing it. -JB

Videocast: ‘War play’ in VIX trade
optionMONSTER
http://jlne.ws/1dHJE7z

The challenges of clearing options
Joel Clark – FX Week
In the first in a series of video features addressing key themes in the global FX industry, editorial director Nick Sawyer talks to FX Week editor Joel Clark about the complex issues that have delayed central clearing of FX options
http://jlne.ws/1dHKql5

EXCHANGES

CME Daily Trading Volume Up in August
Tess Stynes – NASDAQ
Average daily volume at the world’s largest futures-market operator averaged 12.2 million contracts last month, up 18% from August 2012 and 12% from July.

http://jlne.ws/1a7rp7J 

ICE Reports Increase in August Daily Futures Volume

Press Release (ICE)
IntercontinentalExchange (NYSE: ICE), a leading operator of global markets and clearing houses, today reported futures volume for August 2013. ICE’s average daily volume (ADV) for futures and options was 2,971,139 contracts, an increase of 2% from the prior August. Total volume in August 2013 was 65 million contracts.  
http://jlne.ws/1a7uTXJ 

BATS Global Markets Reports August Volume and Activity

Press Release (BATS)
September 4, 2013 – BATS Global Markets (BATS) today reported that BATS Chi-X Europe posted overall market share of 24.1% in August, with new monthly market share records set in Oslo’s OBX (25.1%) and Stockholm’s OMXS30 (31.6%).
MIAX Options Exchange Announces MOU with Taiwan Stock Exchange; Listing of Options on EEM; and Commencement of Construction of Miami Office
Press Release (MIAX)
MIAX Options Exchange (MIAX) announced today that it has recently entered into a Memorandum of Understanding (MOU) with the Taiwan Stock Exchange (TWSE) for mutual cooperation and information sharing.
…MIAX also announced that on September 4, 2013, MIAX will begin listing Options on the iShares MSCI Emerging Markets ETF (Symbol: EEM), a highly traded ETF offering customers exposure to both Taiwanese companies and those in other emerging markets.
Options Exchanges Marketshare – August 2013
(OIC via email)
August 2013 Total Options Marketshare:
AMEX-                 12.31%
BATS-                   &
nbsp; 4.10%
BOX-                       2.27%
CBOE-                   28.56%                                                           
C2-                          1.94%
GEM-                    0.49%
ISE-                        13.92%
MIAX-                     1.35%
NOBO-                    0.85%
NSDQ-                    8.22%
NYSE Arca-           10.72%
OMX PHLX-         15.27%

August 2012 Total Options Marketshare:

AMEX-                  13.27%
BATS-                      3.68%
BOX-                        3.90%
CBOE-                    27.71%
C2-                            1.02%
ISE-                          15.80%
NOBO-                     0.65%
NSDQ-                      4.98%
NYSE Arca-             9.64%
OMX PHLX-           19.34%

August 2013 Equity Options Marketshare:
AMEX-                  13.51%
BATS-                      4.54%   
BOX-                        2.51%
CBOE-                    21.27%
C2-                            2.14%
GEM-                        0.54%
ISE-                         15.34%
MIAX-                       1.50%
NOBO-                     0.94%
NSDQ-                     9.07%
NYSE Arca-           11.77%
OMX PHLX-          16.87%

August 2012 Equity Options Marketshare:

AMEX-                 14.39%
BATS-                      4.00%
BOX-                       4.24%
CBOE-                   21.97%
C2-                            1.07%
ISE-                        16.96%
NOBO-                    0.71%
NSDQ-                    5.41%
NYSE Arca-          10.44%
OMX PHLX-         20.81%

REGULATION

How the Bank Lobby Loosened U.S. Reins on Derivatives
Silla Brush & Robert Schmidt – Bloomberg
One by one, Gary Gensler’s supporters deserted him. Now the chief U.S. regulator of derivatives was being summoned by Treasury Secretary Jacob J. Lew to explain why he refused to compromise.
http://jlne.ws/15Zomxj
**Which makes it no wonder that Amanda Renteria, a person with no experience doing this job or anything like it, was nominated to take Gensler’s position (she has since withdrawn herself from consideration). -JB

TECHNOLOGY

ASX and NYSE Technologies announce new global network connection 
Press Release (NYSE)
ASX and NYSE Technologies, the commercial technology business of NYSE Euronext, today announced that they have connected their respective global networks. The linking of ASX Net Global and NYSE Technologies’ Secure Financial Transaction Infrastructure (SFTI) will initially provide customers of NYSE Technologies cost-effective access to ASX markets and market data services.
http://jlne.ws/17E2Ugb

STRATEGY

Generate Income From a Range Bound Stock (X)
Adam Beaty – Benzinga
Iron Condors (cool name for an options strategy, right?) are great plays to take advantage of falling implied volatility. Since traders would net short (trading it for a credit) four different options, they all lose value when volatility drops generating a quick profit for them.
http://jlne.ws/1a7xgtt

EVENTS

The Options Industry Council Announces Equity Options Seminar Schedule for Fall 2013
Press Release (OIC)
The Options Industry Council (OIC) recently announced its seminar schedule for fall. The seminars focus on basic, intermediate and advanced options topics as well as volatility and the Greeks. The fall lineup will also debut an interactive introduction to options workshop, which will be held in Houston, TX; New Brunswick, NJ; and Tampa, FL.
http://jlne.ws/1a7ttfT

Looking for the Edge: US Options Trading 2013 
Press Release (TABB Group)
Join Andy Nybo, Principal and head of derivatives at TABB Group, as he reviews the findings from his recent research report, “US Options Trading 2013: Looking for the Edge.” Based on interviews with 52 buy-side traders, the presentation will explore the challenges facing them as they expand their use of listed options to manage risk and portfolio exposures.
http://jlne.ws/1a7tD6U

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