Not Enough Reform on Derivatives
The New York Times (Editorial)
On Thursday, several bills to pre-empt the regulation of derivatives will be the focus of a hearing in the House Financial Services Committee. The bills, which have already passed the Agriculture Committee, must be stopped if the world is to be made safe from reckless risk-taking by banks. As it turns out, Representative Jeb Hensarling, Republican of Texas and the new head of the Financial Services Committee, may be the man to stop them.
http://jlne.ws/17qYlag S&P 500 hits new record high; financials lead
Angela Moon, Reuters
Stocks rose more than 1 percent on Wednesday, with the S&P 500 climbing to a new all-time intraday record as investors scooped up technology and financial shares that have lagged gains in other sectors recently.
http://jlne.ws/10VadOa Trader Talk: Jack Kennedy Interview
April marks the 40th anniversary of CBOE and the options industry. As part of our month-long anniversary celebration, we revisit WGN’s Orion Samuelson’s interviews with several long-time CBOE traders who share their colorful stories about life in the pits and trading “The Chicago Way.”
jlne.ws/16KOvyW VIX Falls as Dow Reaches New High
Wall Street Sector Selector
If you have a VIX position when the Dow Jones Industrial Average sets a new record high, then you’re not having a nice day. On Tuesday, the Dow set two records: a record intraday high of 14,716 and a record closing high of 14,673.46.
http://jlne.ws/10V3EuN FBI probes trading as KPMG quits Herbalife, Skechers audits
Martinne Geller and Emily Flitter, Reuters
In a blow to one of the world’s largest accounting firms, KPMG said it resigned as auditor of two U.S. corporations amid an FBI investigation into insider trading allegations involving leaked information and a former senior partner.
http://jlne.ws/17r05AC Swaps Trade Group Hires Consultant Amid Probe
Katy Burne, The Wall Street Journal
A global derivatives trade group said it had hired a consultant to recommend possible changes to the way benchmark rates are set for the $379 trillion interest-rate swap market, amid a regulatory probe.
http://jlne.ws/17r0ov1 Options Appoints Former NYSE Euronext Executive Tim Yockel as New SVP of Global Sales
Options, the market leader in infrastructure as a service (IaaS) products for the global capital markets industry, has today announced that the former NYSE Euronext executive, Tim Yockel, has been appointed as the firm’s new SVP of Global Sales.
ExchangesNYSE Liffe to launch equity options on NSI N.V.
Press Release (NYSE)
NYSE Liffe, the European based derivatives business of NYSE Euronext (NYX), will add options on the shares of investment company NSI N.V. (“NSI”) to its highly successful range of equity option classes. The options will be available as of 23 April on the Amsterdam derivatives market of NYSE Liffe.
http://jlne.ws/YjoGVy Swap Users Win Staggered Delays in Dodd-Frank Reporting Rules
Silla Brush, Bloomberg
Energy and manufacturing companies won delays in Dodd-Frank Act requirements to report derivatives trades they use to hedge business risks.
The so-called end users, who trade as clients of banks including JPMorgan Chase & Co. (JPM) and Citigroup Inc. (C), need the delay to test data systems, the Commodity Futures Trading Commission said in a press release yesterday. The rules were to take effect today.
http://jlne.ws/17qYavD S&P, TrueEX to Offer CDS Futures Trading
Katy Burne, The Wall Street Journal
Standard & Poor’s said it is working with startup exchange trueEX LLC to offer futures contracts tied to credit-default swaps, the latest volley from firms vying for a piece of the rapidly evolving CDS market…
The Chicago Board Options Exchange, CME Group Inc. and Deutsche Boerse AG’s Eurex have all tried in recent years to list CDS futures, but their efforts have met with little success.
RegulationSEC Proposes New Exchange Tests to Curb Computer Breakdowns
Nina Mehta, Bloomberg
U.S. exchanges and some brokers will be required for the first time to conduct coordinated trading tests to show they can recover from natural disasters or terrorist acts, according to a rule proposed by regulators.
http://jlne.ws/YjoIgf Interactive Brokers to pay $225,000 CFTC fine
The nation’ s commodity regulator on Tuesday ordered online brokerage firm Interactive Brokers (US:ibkr) of Connecticut to pay a $225,000 fine for failing to maintain enough U.S. dollars in its customer accounts, the second time in a year the firm was fined by the agency.
http://jlne.ws/17r4y6m New rules may force buy-side to reduce hedging activity
Richard Henderson, The Trade
The buy-side may reduce its risk hedging activities as a result of clearing requirements for OTC derivatives under the Dodd-Frank Act, which will capture asset managers for the first time in June, an expert has warned.
TechnologyOrc selected by BRED Banque Populaire for market making on Eurex
Press Release (ORC)
Orc, a leading provider of technology and services for the global financial industry, today announced that BRED Banque Populaire, a leading regional bank in France, has selected Orc Market Maker, Orc’s high-performance turnkey solution for derivatives market making.
**Gary Katz: Now this brings back memories for me… ORC was the provider of ISE’s first market maker workstation. optionMONSTER Holdings Named 2013 ITA CityLIGHTS Awards Finalist For tradeMONSTER Technology
tradeMONSTER, the online brokerage industry’s leader in user experience, has been selected as a finalist for a 2013 Illinois Technology Association (ITA) CityLIGHTS Award, for the “Outstanding Technology Development Award.” Furthermore, CTO Sanjib Sahoo, has been named an ITA Finalist for “Technologist of the Year”.
jlne.ws/YjoFAS OptionsCity Announces Investment from Edison Ventures
Press Release (OptionsCity)
OptionsCity Software, a leading provider of electronic trading solutions, today announced a Series A investment in its business by growth equity firm Edison Ventures. This marks the first institutional capital investment in OptionsCity and will give Edison a minority ownership stake in the company. Edison’s investment will accelerate OptionsCity’s sales and marketing efforts, product innovation, and international expansion.
**Gary Katz: I sense a lightbulb moment coming. trueEX plans to provide CME Group’s clearing members and customers with trueEX’s portfolio termination, compaction, re-balancing and back-loading services
Press Release (PR Newswire)
trueEX, LLC, announced today that it plans to launch a service to provide termination, compaction, re-balancing and back-loading services to CME clearing clients.
Pending CFTC review, trueEX, the first CFTC-regulated Designated Contract Market (DCM) for interest-rate swaps, would provide CME clearing clients with access to trueEX’s proprietary PTC (Portfolio Terminations and Compactions) platform.
StrategyVIX Points Toward More of The Same
Mark Sebastian, The Options Insider
I have been closely watching the VIX curve over the last month for signals that this rally could end in the near future. Since March 12th, the SPY is about 1.10, a little less than .75%. In that same time the VIX has made exactly NO movement. Take a look at the VIX curve from March 12th vs. today:
http://jlne.ws/10V0LKr Your Earnings-Season Life Jacket
Steven M. Sears, Barron’s
Buying bearish puts on the financial sector ETF will protect your portfolio from rocky earnings reports.
EventsCME Group/Actant FX Options Webinar, April 11, 2013, 10 am CDT
Join CME Group’s FX team and trading solutions provider Actant on Thursday, April 11 at 10 am CDT to learn more about trading CME FX options using the front end technology offered by Actant. Topics include an introduction to Actant’s platform, a demonstration of trade hedging and spread trading, and an overview of Actant’s proprietary trade strategy scripting languages.