JLN Options: NYSE Euronext Shareholders Approve Acquisition by IntercontinentalExchange

Jun 3, 2013

Lead Stories NYSE Euronext Shareholders Approve Acquisition by IntercontinentalExchange  
Press Release (NYSE Euronext)
NYSE Euronext (NYSE: NYX) today announced that its shareholders have approved the acquisition of the Company by IntercontinentalExchange (NYSE: ICE), a combination that joins two of the world’s leading operators of markets and exchanges to create the premier global exchange operator.
http://jlne.ws/11mOi3F The Options Industry Council Announces May Options Volume Increased 2 Percent
Press Release (OIC)
The Options Industry Council (OIC) announced today that 386,428,255 total options contracts traded in May, which is up 2.35 percent compared to last year when 377,539,997 contracts were traded.
Average daily volume in May came in at 17,564,921 contracts, 2.35 percent more than the 17,160,908 contracts in May of last year. Year-to-date volume stood at 1,751,155,921 contracts, just off of last year’s 1,758,289,812 contracts by 0.41 percent.
http://jlne.ws/11mNw6K OCC Announces Cleared Contract Volume in May Increased 3%
Press Release (OCC)
OCC announced that total cleared contract volume in May reached 391,347,069 contracts, representing a 3 percent increase from the May 2012 volume of 380,417,938 contracts. OCC’s year-to-date cleared contract volume is up 0.2 percent from 2012 with 1,774,634,896 contracts.
http://jlne.ws/11mNdsI For those left out of the exchange merger party, cross-listings are a boon
Anish Puaar, Financial News
The number of cross-listed futures has rocketed as exchanges seek ways to quickly grow their product offerings, access new markets and diversify revenues.
http://jlne.ws/15vWyif Trim Best Positions, Use Options & Take A Drive
Dimitra DeFotis, Barron’s
The market has plenty of positive underpinnings, but taking a little money off the table and using a safer options strategy was the advice from Charles Schwab and optionsXpress in Thursday’s monthly market update.
http://jlne.ws/11h735w Head of Options Clearinghouse to Retire 
Jacob Bunge, The Wall Street Journal
Wayne Luthringshausen, the chief executive of the Options Clearing Corp., plans to retire this year after four decades leading the main clearinghouse for U.S. stock-options trading.
http://jlne.ws/18NxcRa Attack of the Hedge Fund Clones
Lewis Braham, BloombergBusinessweek
In the investment world there are two kinds of people — those who want to beat the market, and those who want to be the market. Hedge fund managers are the former, while index fund managers are the latter. But what happens when an indexer wants to track the hedge fund market?
http://jlne.ws/11h5CnK A VIX Curve Theory: Charts Say Last Week’s Swoon Has Further to Go
Fil Zucchi, Minyanville
Last week the broad media began discussing in panicky terms the recent increase in interest rates. Specifically they noted how closed-end funds and ETFs like the SPDR Barclays High Yield Bond Fund (NYSEARCA:JNK) had taken some serious price hits. Unfortunately, in my humble opinion, that completely misses the point of what is actually going on.
http://jlne.ws/11h6V63

Exchanges

CBOE Holdings May Volume is Highest for 2013
Press Release (CBOE)
CBOE Holdings, Inc. (NASDAQ: CBOE) reported today that May trading volume for options contracts on Chicago Board Options Exchange (CBOE) and C2 Options Exchange (C2) and futures contracts on CBOE Futures Exchange, LLC (CFE) totaled 107.14 million contracts, the highest monthly volume to date in 2013. Average daily volume (ADV) in May was 4.87 million contracts, up four percent from 4.67 million contracts in April 2013 and down four percent from 5.06 million contracts in May 2012.  
http://jlne.ws/11mO1Og CBOE’s Bright Future 
Sammy Pollack, Seeking Alpha
Since going public in mid-2010, shares of CBOE Holdings, Inc. (CBOE), the world’s largest options exchange, are up more than 23%. I believe the future will continue to be bright for CBOE and its shareholders.
http://jlne.ws/11h6Wa9 NYSE Liffe Sets July 1 Clearing Transition to ICE Clear Europe  
Press Release (NYSE Euronext)
NYSE Liffe, the derivatives division of NYSE Euronext and ICE Clear Europe, a wholly-owned subsidiary of IntercontinentalExchange, today announced plans to begin clearing the London-based derivatives market of NYSE Liffe on Monday, July 1, 2013, following successful testing with Clearing Members in recent weeks. Subject to relevant regulatory approvals, the transition process for open positions will occur over the weekend of June 29-30, 2013.
http://jlne.ws/11mOoIw May 2013 Trading Volumes In VIX Futures Post Gains Over Year Ago 
Press Release (CBOE via The Wall Street Journal)
The CBOE Futures Exchange, LLC (CFE ) announced today that total trading volume and average daily volume (ADV) for futures on the CBOE Volatility Index (VIX ) during May 2013 posted gains over year ago levels.
http://jlne.ws/11h8r87 Average daily volume of 10.1 million contracts at Eurex Group in May
Press Release (Eurex)
Eurex Exchange recorded 51.9 million equity index derivatives contracts (May 2012: 76.6 million). The single largest contract was the future on the EURO STOXX 50® Index with 20.6 million contracts. The option on this blue chip index totaled 18.6 million contracts. Futures on the DAX index recorded 2.3 million contracts while the DAX options reached another 4.0 million contracts. The Eurex KOSPI Product reached 1.5 million contracts.
The equity derivatives (equity options and single stock futures) segment at Eurex Exchange recorded 60.5 million contracts (May 2012: 66.4 million). Thereof, equity options totaled 19.2 million contracts and single stock futures equaled 41.3 million contracts.
http://jlne.ws/11h865y

Strategy

Investors Buying Insurance Against Stocks 
Steven M. Sears, Barron’s
The options market turns suddenly bearish as investors load up on puts to hedge their portfolios. Here’s how to play defense.
http://jlne.ws/15vVlHI Using LEAPS As An Alternative to Buying ETFs
Business Insider
Long-term equity anticipation securities (LEAPS) are long-term stock options with expiration dates set at least 12 months into the future. Long-term investors that normally shy away from traditional stock options can use LEAPS to gain long-term exposure to ETFs without actually spending the money to buy shares in them.
http://jlne.ws/11h789m

Events

2013 CBOE Risk Management Conference Europe: CBOE to Host Second Annual CBOE RMC Europe September 30 – October 2, 2013 in Portugal 
Press Release (CBOE)
The Chicago Board Options Exchange (CBOE) will host the second annual CBOE Risk Management Conference (RMC) Europe, from Monday, September 30 through Wednesday, October 2, at Penha Longa Resort in Sintra, Portugal.
This highly-acclaimed conference, hosted annually in the U.S. by CBOE, is making its second visit to Europe this fall. F or 29 yea rs, the U.S. CBOE RMC has been regarded as the premier educational conference covering uses of equity derivatives to increase returns and manage risks.
http://jlne.ws/11QscbN

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