OCC Said to Approach Former CME CEO Donohue for Chairman
Nandini Sukumar – Bloomberg
Options Clearing Corp. is in talks with Craig Donohue, the former chief executive officer of CME Group Inc., about hiring him as chairman, according to two people familiar with the matter.
OPTIONS REPORT: Low Volatility Makes Buyside Work Harder
John D’Antona Jr. – Traders Magazine
Alpha is tough to find and preserve in today’s low volatility environment.
That’s because the buyside must trade less liquid options and shorter expiration periods, such as weeklies, according to Tabb Group. These trading shortcuts must be used to generate alpha, Tabb said in a new report. And this is happening at the same time that the buyside faces increased competition from other institutional investors.
Investors Shrug Off Big Week for Data, Expect Calm
Kaitlyn Kiernan – The Wall Street Journal
Options prices suggest few investors are expecting to see the market shift direction this week despite a pending Federal Reserve policy statement and several major data releases.
Options prices on the SPDR S&P; 500 exchange-traded fund imply investors see moves of just 1.1% in either direction through the end of the week, an average-sized weekly move.
Videocast: Big trade bets on VIX spike
Investors Cautious After ADP, GDP Reports
Paul Vigna – The Wall Street Journal
The market got two big reports this morning, both came in better than expected, and the reaction in the stock market was…very little.
S&P; 500 ends flat after Fed statement
Chuck Mikolajczak – Reuters
The S&P; 500 ended a volatile session nearly flat on Wednesday after the Federal Reserve gave no hint that a reduction in the pace of its bond-buying program is imminent. But the index finished July up 5 percent to mark its best month since January.
CBOE Holdings Announces 20% Increase In Quarterly Dividend
Press Release (CBOE)
CBOE Holdings, Inc. (NASDAQ: CBOE) today announced that its Board of Directors has raised the company’s quarterly dividend to $0.18 per share from $0.15 per share, an increase of 20 percent.
The dividend increase is effective with the third quarter dividend, payable on September 20, 2013, to stockholders of record at the close of business on August 30, 2013.
NYSE Euronext Announces Second Quarter 2013 Financial Results
Press Release (NYSE)
NYSE Euronext (NYX) today reported net income of $173 million, or $0.71 per diluted share on a GAAP basis, for the second quarter of 2013, compared to net income of $125 million, or $0.49 per diluted share, for the second quarter of 2012. Results for the second quarter of 2013 and 2012 included $22 million and $12 million, respectively, of pre-tax merger expenses and exit costs. Second quarter 2013 results also included a $10 million gain recorded for non-operating items due to the sale of a portion of our equity stake in LCH.Clearnet and a reserve release related to a favorable settlement with certain European tax authorities which significantly reduced our GAAP effective tax rate.
NYSE Liffe to list equity options on bpost
Press Release (NYSE)
NYSE Liffe, the European based derivatives business of NYSE Euronext (NYX), introduced equity options on the shares of bpost, Belgium’s largest provider of postal services. The options will be available as of July 26th on the Brussels derivatives market of NYSE Liffe.
SEC Examining Trading on Nonpublic Information in Commodity Markets
Jamila Trindle and Andrew Ackermani – The Wall Street Journal
Securities and Exchange Commission Chairman Mary Jo White told Senate lawmakers Tuesday that the agency is examining whether there should be greater oversight of firms that trade on nonpublic information in commodity markets.
CFTC grants Bloomberg SEF approval
Bloomberg has today received provisional approval for its swap execution facility (SEF) from US regulator the Commodity Futures Trading Commission (CFTC), weeks after its lawsuit against the regulator was thrown out.
Derivatives End Users Rail at CFTC
Robert Feinberg – Money News
For the second day in a row, the House Agriculture Committee’s Subcommittee on General Farm Commodities and Risk Management, chaired by Michael Conaway, R-Texas, acted out its ambivalence with regard to the derivatives title of the Dodd-Frank Act as it held yet another hearing to allow industry lobbyists to argue that their clients should be exempt.
Redline Trading Solutions Announces Support for CBOE’s Options, Futures, and Equities Exchanges
Redline Trading Solutions today announced full support for direct market data feeds from CBOE Holdings’ family of exchanges in futures (CFE), options (CBOE, C2), and equities (CBSX) by Redline’s ultra-low latency InRush 3 ticker plant.
Forex traders brace for ‘monster’ next few days
Matthew Walter – MarketWatch
Foreign exchange traders are gearing up for an unusually tight schedule of market-moving events in the next few days that may provide a welcome jolt to the currency market…
With such a large binary risk that major currencies such as the euro or dollar could move sharply higher or lower, Mr. d’Hautefort said he prefers not to bet either way. Instead, he’s invested this week in hedging instruments–currency options to be specific–that will pay off if market volatility surges in the coming days.