New Options Exchange Opens for Business
Jill Malandrino – The Street
The Gemini options exchange opened for business today. Owned by the International Securities Exchange, GEM represents the 12th U.S. options exchange and opened this morning with six listings: Disney (DIS), Dow Chemical (DOW), Goldcorp (GG), NetApp (NTAP), NVIDIA (NVDA), and Texas Instruments (TXN). If all goes according to plan, Gemini will ramp up that number over the next several weeks until the exchange is trading all of the most actively traded options classes.

New U.S. Options Exchange Gemini Aims To Take Order Flow From Fee-Friendly Marketplace 
Saturday, August 3, marked the launch of the International Securities Exchange’s secondary marketplace, Gemini.
Originally filed with the SEC under the name Topaz, Gemini is now the twelfth U.S. options market and the third launched within the past 12 months (Miami Options Exchange and Nasdaq BX are the other two).

Historic rally drives VIX below 12 level
Chris McKhann – optionMONSTER
Equities continued their historic run higher after an intraday reversal on Friday, pushing the CBOE Volatility Index to its lowest close in nearly three months.

Videocast: VIX’s levels explained

Dow, S&P; 500 end weaker in low volume
Caroline Valetkevitch – Reuters
Stocks drifted lower in low volume on Monday, following record closes for the Dow and the S&P; 500 last week, as a lack of major news left the market directionless.

Volatility measures suggest calmer Nikkei
Jamie Chisholm – Financial Times
Wall Street’s trundle to record levels helped the CBOE Vix index, a measure of S&P; 500 1-month expected volatility (vol), start the week below 12.

Commodities revenues plummet at top banks
Suzi Ring – Financial Times
The world’s 10 largest investment banks suffered a 25% plunge in their commodities revenues in the first half of the year as the units continued to suffer from regulatory scrutiny and lower market volatility.

When Your Dad Thinks You’re A Bookie…
Don Dawson – The Options Insider
It’s time to try and explain how the Futures markets work. If you have ever tried to explain something like trading to someone who has never had an interest in the markets, you can probably relate to this story.
**In my experience it is only worthwhile trying to explain the markets to someone you know is genuinely interested in the answer.  To anyone else you get that dead, thousand yard stare looking back at you.  At times like that best to just say you buy low and sell high and leave it at that. -JB


Chicago pits going quiet, 165 years after shouting began
Tom Polansek – Reuters
On a recent morning in the Chicago Board of Trade’s soybean futures pit, the trading action looked like this: One trader hiked up a leg onto a metal railing, stretching his hamstring; another passed time bouncing a green rubber ball; a third yawned.

BOX Implements Jumbo SPY Option Fee Change, Reports July Volume
The Options Insider
Effective August 1, 2013, BOX Options Exchange (BOX) has adopted a “Make/Take” pricing model for its Jumbo SPY Options under Section II (Liquidity Fees and Credits) of the Fee Schedule.

Borsa Istanbul embarks on significant changes 
Against the recent backdrop of turmoil on the streets of Istanbul, newly created exchange operator Borsa Istanbul has been busily putting the final touches to the integration of a number of the nation’s bourses, finds Roger Aitken.


Derivatives caught in regulatory crossfire
Christopher Whittall – Reuters
Regulators are denying derivatives dealers a crucial tool to manage down swaps exposures and shrink their assets, even as they force banks to adopt stricter than expected leverage ratio rules that will cause balance sheets to balloon.

Did The CFTC Do The Right Thing With EC Swaps Deal?
Lee Sheppard – Forbes
Is the CFTC’s recent deal with the European Commission on swaps regulation a bad deal? Recent press coverage maintained that outgoing CFTC Chairman Gary Gensler caved to the wishes of Europeans and big swap dealer banks. It’s not that bad.


How to Read Truly Notable — Not Just Unusual — Option Activity
Minyanville (via NASDAQ)
Using option activity as an indicator for impending price moves is difficult, subjective, and unreliable. However, it can help confirm other indicators and increase the probability of a profitable trade.

How to Play the Volatility Cycle 
Jim Strugger – Barron’s
Investors can exploit dormant volatility via relatively new products linked to the VIX, such as VelocityShares’ and ProShares’.

Looking for Anti-Volatility Plays? 
Adam Warner – Schaeffer’s Investment Research
We often (well, sometimes) talk of volatility regimes. These refer to longer-term CBOE Volatility Index (VIX) trends, which we simplify as “up” and “down” VIX trends of a multiyear duration. There’s often debate over when one regime ends and another begins, but it’s a fairly accepted concept.

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