Nasdaq to Offer Options on U.S. Treasury Securities This Month
Liz Capo McCormick, Bloomberg
Nasdaq OMX Group Inc., the second- biggest U.S. exchange operator, will offer options on U.S. Treasury securities to allow buyers to hedge interest-rate risk.
http://jlne.ws/XjLYWW Some Trader Has Made A Very Big Bet That Something Very Bad Will Happen Within The Next 60 Days
Sam Ro, Business Insider
[A]ccording to UBS’s Art Cashin, some options trader has made an enormous $11.25 million bet that the VIX will explode higher very soon.
**Confusing terminology on what the trader actually did – I assume they meant he bought the April 20-25 call spread. Regardless, the trade could just be a fund hedging portfolio risk – options used for their intended purpose. -DA Options Market Flashes Warning for Stocks
Steven M. Sears, Barron’s
The options market’s crystal ball sees a sharp correction in store for the stock market.
Bearish put options on the SPDR S&P 500 ETF Trust (ticker: SPY) are priced sharply higher than bullish calls.
http://jlne.ws/Xokf5R Volatility Traders Eye Another Win
Brendan Conway, Barron’s
After an unusually calm 2012, stock-market volatility is picking up again. Wednesday looks ready to deliver another rare win for for the funds and notes built to profit.
http://jlne.ws/XjMe8x ETNs Would Lose Tax Edge in House Republican Proposal
Richard Rubin & Kevin Dugan, Bloomberg
Exchange-traded notes, which mimic investments in securities without an annual tax bite, would lose that edge under a proposal from the top Republican tax writer in Congress.
http://jlne.ws/11Lxipt Europe stock ‘fear gauge’ jumps to 2-1/2-month high
The Euro STOXX 50 Volatility Index , or VSTOXX, Europe’s widely-used measure of investor risk aversion, hit a 2-1/2 month high on Wednesday afternoon as European stocks resumed their sell-off.
http://jlne.ws/11LrAnr Top Hedge Fund Manager Calls This Year a “Game Changer”
We’re seeing signs of economic recovery, and we’re certainly seeing a bull market in stocks right now. But when you look at these developments from a particular perspective, it suggests a major opportunity for investors.
http://jlne.ws/XjO6y9 HFT Revenue to Increase as Volume Rebounds, Tabb Predicts
Lindsey Rupp, Bloomberg
Revenue from high-frequency stock trading may increase by about 22 percent to $2.2 billion in 2013 as volume in U.S. equity markets rebounds following a three-year slump, according to Tabb Group LLC.
ExchangesCME Sees Signs of OTC Business Moving to Exchanges
Jacob Bunge and Tess Stynes, Dow Jones Business News (via NASDAQ)
CME Group Inc. ( CME ) said Tuesday new business is being steered towards its exchange platforms from the huge over-the- counter derivatives market ahead of a March deadline set by U.S. regulators.
http://jlne.ws/XjMGUk 2nd CME Says Swap Migration Underway as Profits Fall 78%
Jacob Bunge, Dow Jones Newswires (via Fox Business)
CME Group Inc. (CME) said Tuesday new business is flowing toward its exchange platforms from the huge over-the-counter derivatives market, ahead of a March deadline set by U.S. regulators for new trading rules.
http://jlne.ws/11Ls8d3 Taiwan Futures Exchange and Eurex form derivatives trading alliance
Taifex, the Taiwan Futures Exchange, and Eurex Exchange, the international derivatives marketplace, announced an extensive product cooperation to trade and clear derivatives based on the Taiex index, one of the most heavily traded Asian equity indexes.
http://jlne.ws/XjQHIq ICE reports 2 percent rise in Q4 profit
IntercontinentalExchange Inc, which is in the process of buying NYSE Euronext for $8.2 billion, reported a 2 percent rise in quarterly profit on Wednesday, helped by an increase in market data revenues and slightly lower expenses.
http://jlne.ws/11LrkVx NYSE Euronext Announces Fourth Quarter and Full-Year 2012 Financial Results
Press Release (NYSE Euronext)
NYSE Euronext (NYX) today reported net income of $28 million, or $0.12 per diluted share, for the fourth quarter of 2012, compared to net income of $110 million, or $0.43 per diluted share, for the fourth quarter of 2011.
http://jlne.ws/XjPQr6 IntercontinentalExchange Reports Record 2012 Earnings and Revenues
Press Release (ICE)
IntercontinentalExchange (NYSE: ICE), a leading operator of global markets and clearing houses, today reported financial results for fourth quarter and full year 2012. Consolidated net income attributable to ICE for the quarter grew 2% to $129 million on consolidated revenues of $323 million, down 1% compared to the prior fourth quarter. Diluted earnings per share (EPS) in the quarter increased 2% to $1.76.
http://jlne.ws/XVozcC Canada exchange operator TMX posts profit despite slowdown
Reuters (via CNBC)
TMX Group Ltd, operator of the Toronto Stock Exchange, reported a profit for the first full quarter since a consortium of Canadian financial institutions took control, even as slow trading and listing activity held back the results.
RegulationEffective Date of New Circuit Breakers Postponed
Tom Steinert-Threlkeld, Traders Magazine
The Financial Industry Regulatory Authority has pushed back the implementation of new price bands and market-wide circuit breakers by two months.
The regulator of securities brokers said it filed rule changes with the Securities and Exchange Commission that will move the start of new price bands and market-wide circuit breakers to April 8, from February 4.
TechnologyInteractive Data Provides Managed Services to Industry’s First Regulated Interest Rate Swaps Exchange
Press Release (Marketwire)
Interactive Data Corporation, a leading global provider of managed ultra-low latency IT and market data feed services to facilitate electronic trading, today announced an agreement to provide a full suite of services to trueEX, LLC, the first interest rate swaps exchange approved by the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market (DCM).