NYSE Voids Penny Trades in Anadarko From Last Minute of Trading
Whitney Kisling & Nikolaj Gammeltoft, Bloomberg
The New York Stock Exchange broke trades in Anadarko Petroleum Corp. (APC) after the shares briefly plunged 99 percent in the final minute of today’s session.
http://jlne.ws/12oRWbi Why QE, low interest rates and volatility are an explosive mix for the markets
Simone Foxman, Quartz
Critics of quantitative easing (QE)—whereby central banks push down interest rates and buy up safe assets to stimulate flagging economies—have long worried about the possible unintended consequences. The point of QE is to push down the yields on safe assets like government bonds so that investors put their money in riskier assets where it can do more economic work; the worry is that too much money in risky assets could blow up in investors’ faces.
http://jlne.ws/14pd5EC 15 Most Overbought S&P 500 Stocks
Tom Aspray, Forbes
Stocks continued higher for the fourth week in a row as the major averages have already easily exceeded the most bullish Wall Street forecasts for the entire year. All of the major averages are all showing double-digit gains, which was suggested in late 2012 by the upside breakout of the NYSE A/D line.
http://jlne.ws/14pckeE Dealmaking fails to send Wall St higher
Arash Massoudi, Financial Times
US stocks saw muted losses that sent the S&P retreating from record levels, despite a burst of dealmaking to start the week.
The S&P 500 edged fractionally lower to 1,667.29 by the early afternoon in New York.
http://jlne.ws/18ZlXDJ A Difficult Point In The Market Cycle For Investors To Navigate
David I. Templeton, Seeking Alpha
As the market continues to seemingly move higher every day, investor complacency appears to be on the rise. The recent CBOE equity put/call ratio is at a low level of .50. Like other sentiment indicators, this measure tends to be more accurate at extremes.
http://jlne.ws/14pbPkN Best 100 Hedge Funds
Eric Uhlfelder, Barron’s
Our ranking of the top-performing funds. Who has averaged a 50%-plus annual return for three years?
http://jlne.ws/14p3Rs1 Analysis: High speed trading a stiff challenge for U.S. regulators
Christine Stebbins, Reuters (via Chicago Tribune)
Financial trading in world markets has grown so lightning-fast that effective regulation is growing tougher by the second, increasing the threat of crashes sparked by hoaxes, electronic glitches or yet-unknown causes.
http://jlne.ws/14p5g1Q Correction talk gets old as rally sails along
Angela Moon, Reuters
With the broad S&P 500 Index gliding once again into uncharted territory and posting four straight weeks of gains, the talk of Wall Street’s rally inevitably hitting a ceiling is starting to get old.
http://jlne.ws/14p6zO3 Is VIX Index Forecasting A Stock Market Surprise?
Wall Street Sector Selector
In recent days, the VIX index, the CBOE S&P 500 Volatility Index, also known as the fear index, has dipped back into extremely low territory, indicating high investor complacency and confidence in the short term future of low volatility and higher stock market prices.
http://jlne.ws/14p6OZI Derivatives Reform on the Ropes
The New York Times (Editorial)
New rules to regulate derivatives, adopted last week by the Commodity Futures Trading Commission, are a victory for Wall Street and a setback for financial reform. They may also signal worse things to come.
http://jlne.ws/14p7iij Videocast: Late May action in VIX pits
ExchangesThe Rich Past and Uncertain Future of the NYSE
Phil Albinus, Advanced Trading
On the anniversary of its founding, the New York Stock Exchange shows signs of strength in an uncertain world.
http://jlne.ws/14p7SfV HKMEx surrenders trading license
The Hong Kong Mercantile Exchange (HKMEx) has decided to voluntarily surrender the authorization to provide automated trading services (ATS) granted by the Securities and Futures Commission (the SFC). With immediate effect, no new orders may be placed and all open positions will be financially settled at the settlement price determined by HKMEx and its designated clearinghouse.
http://jlne.ws/17TqpF4 IntercontinentalExchange Announces 2013 Annual Meeting Results
Press Release (ICE)
IntercontinentalExchange (NYSE: ICE), a leading operator of global markets and clearing houses, announced today the result of the company’s 2013 Annual Meeting of Stockholders, which was held May 17, 2013.
RegulationRegulators Compromise on Swaps RFQ Rule, So Are the Banks Winning?
Ivy Schmerken, Advanced Trading
CFTC commissioners compromised on key rules that now require asset managers to contact two banks for prices on derivatives, rather than five, which was opposed by banks and lobbyists.
TechnologyMarketDelta Licenses Trading Technologies’ Entire Patent Portfolio
Press Release (TT)
MarketDelta Trader LLC (MarketDelta) and Trading Technologies International, Inc. (TT) today announced they have entered into a licensing agreement under which MarketDelta will license TT’s entire patent portfolio, which includes more than 400 patents for electronic trading in financial markets.
StrategyA Call for Cyclicals
Steven M. Sears, Barron’s
The stock market might not offer investors any free lunches, but the options market comes close to doing so. It sometimes disconnects temporarily from stocks, letting investors buy calls and puts without paying greed or fear premiums that otherwise would inflate their prices.
http://jlne.ws/14p5Ex4 Tap into oil volatility using an options spread
James Ramelli, Futures
Over the past week crude oil prices have been rocked by conflicting macroeconomic data and a suspected price-fixing scandal, and the resultant price swings have left many investors questioning the validity of the current price levels.
http://jlne.ws/14p62Md Ratio Spread ETF Option Strategy Explained
Justin Kuepper, ETF Database
Exchange-traded funds (“ETFs”) have become an invaluable tool for investors looking for exposure to every corner of the market. While ETFs provide investors with diversified exposure, stock options are a great way to further hone their effectiveness. In this article, we’ll take a look at how one such strategy can be used to capitalize on sideways markets.
EventsCBOE, Barron’s Co-Host Symposium and Live Webcast on 40 Years of Options Innovation
Press Release (CB OE)
The Chicago Board Options Exchange (CBOE) and Barron’s will broadcast a free, live webcast of a co-hosted symposium featuring key options industry figures discussing the 40th anniversary of CBOE and the U.S. options industry. The 90-minute webcast, broadcast live from CBOE, will begin at 4 p.m. CT on Wednesday, May 22, 2013.