Options on Debt Derivatives Nearing $100 Billion: Credit Markets
Abigail Moses – Bloomberg
The market for options on credit derivatives indexes has surged more than 40 percent in the past month to $98.8 billion as investors search farther afield for cheap hedges protecting against a sell-off in the bond markets.
http://jlne.ws/11Wte05 VIX and VIX ETFs spike as fear of “The Bernank” enters markets
Wall Street Sector Selector
Fear is back in the marketplace, and VIX, the CBOE S&P 500 Volatility Index, also known as the “fear indicator,” spiked higher last week along with VIX ETFs.
http://jlne.ws/11WuBvM IntercontinentalExchange Receives European Commission Approval for NYSE Euronext Acquisition
Press Release (ICE)
IntercontinentalExchange (NYSE: ICE), a leading operator of global markets and clearing houses, today received notification from the European Commission that ICE’s proposed acquisition of NYSE Euronext has been approved unconditionally. The completion of the transaction is subject to final approval from the Euronext College of Regulators, the U.S. Securities and Exchange Commission, and other national financial regulators.
http://jlne.ws/11WtrQV U.S. Stocks Pare Declines After Comments by Fed’s Fisher
Lu Wang & Whitney Kisling – Bloomberg
U.S. stocks fell, paring earlier losses after Federal Reserve Bank of Dallas President Richard Fisher said investors shouldn’t overreact to the central bank’s plan to slow bond purchases.
http://jlne.ws/11WurVc Emerging Stocks Sink as Chinese Shares Enter Bear Market
Maria Levitov, Julia Leite & Harry Suhartono – Bloomberg
Emerging-market stocks dropped to the lowest level in a year as China’s CSI 300 (SHSZ300) Index entered a bear market after the central bank signaled it will keep efforts to curb credit growth. Bond yields surged and currencies weakened as Turkey’s lira headed for a record low.
http://jlne.ws/10gE8kU Stocks whacked by China and Fed
Hibah Yousuf – CNN Money
U.S. stocks shaved most of their early losses but remained in the red Monday afternoon as persistent worries about the Fed easing up on stimulus and concerns about China kept investors on edge.
http://jlne.ws/11WwEQy Stock sell-off is just ‘taper tantrum’
Catherine Tymkiw – CNN Money
So is it time to run for the hills? Not so fast, says Phil Orlando, chief equity market strategist with Federated Global Investment Corp. “This purge is cathartic,” he said. “It’s a taper tantrum sell-off.”
http://jlne.ws/11WwuZo OCC Announces Standard Options Are Now Being Processed on Friday
CHICAGO (June 24, 2013) – OCC announced today that expiration processing of standard options has moved from Saturday to Friday.
After receiving approval from The Securities and Exchange Commission (SEC), OCC transitioned the standard monthly back office expiration process from Saturday to Friday night.
http://jlne.ws/11Wy9hD The Ugliest Faucet
Jared Woodard – The Street
Action in stocks these days is all about what’s happening in fixed income markets. Traders are re-pricing Treasury bonds and notes not just for the starting of Fed “tapering” of large scale asset purchases (LSAPs), but also for future interest rate hikes.
http://jlne.ws/11WsMiw CME’s Terry Duffy on the trade that changed his life
Shia Kapos – Crain’s Chicago Business
In 1981, future CME Group Inc. chief Terry Duffy was a 21-year-old in a fix. With a few years of college behind him, he had persuaded his mother to mortgage the family’s Mount Greenwood bungalow for $50,000 so he could trade futures. Just weeks after joining the trading pits, he lost the $50,000 and another $100,000.
** Not options but interesting. -JB
ExchangesISE ETF Ventures and NationsShares Announce Agreement to License and List Options on the Nations VolDex Index
Press Release (ISE)
The International Securities Exchange (ISE) today announced that it is the first options exchange to enter into a licensing agreement with NationsShares, a leading developer of option-enhanced and option-based indexes, to list options on the Nations VolDex index (ticker: VOLI). The Nations VolDex measures broad market implied volatility by way of at-the-money SPY options.
http://jlne.ws/11B6NCo CBOE Holdings Announces Date Of Second-Quarter 2013 Earnings Release And Conference Call
Press Release (CBOE)
CBOE Holdings, Inc. (NASDAQ: CBOE) will announce financial results for the second quarter of 2013 before the market opens on Friday, August 2, 2013. A conference call with remarks by CBOE Holdings, Inc. senior management will begin at 7:30 a.m. Central Time. A presentation will be referenced during the call and will be available on the Investor Relations section of our website at http://ir.cboe.com under Events and Presentations.
http://jlne.ws/11Ww6Kq CME Group Announces First Trades of New Physically Delivered 1,000 oz. Silver Futures Contract
Press Release (CME via The Wall Street Journal)
CME Group, the world’s leading and most diverse derivatives marketplace, today announced 574 lots of the new physically delivered Silver (1,000 oz.) futures contracts traded last week, with trades taking place each day.
“As our benchmark Silver 5,000 oz. contract celebrates its 50th anniversary of continuous trading, this new 1,000 oz. fungible contract offers a cost-effective way to manage risk in our deeply liquid silver futures and options marketplace,” said Harriet Hunnable, Managing Director Global Metals.
http://jlne.ws/11WvTa7 Volatility Positive for Exchanges, Goldman Raises CBOE (CBOE) to Buy, CME (CME) to Neutral
Goldman Sachs upgraded CBOE Holdings (NASDAQ: CBOE) from Neutral to Buy with a price target of $47.00.
RegulationCFTC’s Chilton Seeking Review of CME Wash-Trade Restrictions
Silla Brush – BloombergBusinessweek
U.S. regulators should review CME Group Inc. (CME)’s plan for blocking wash trades to ensure that it sufficiently restricts the illegal transactions, said Bart Chilton, a member of the Commodity Futures Trading Commission.
http://jlne.ws/11Wtix1 Swaps reforms buoy currency futures volumes
Anish Puaar – Financial Times
The global drive to push more privately negotiated derivatives contracts on to exchanges has led to strong growth in currency-based futures and options trading, with foreign exchange derivatives traded in emerging markets experiencing particularly large gains.
Awaiting a “Spike-Peak Buy Signal”
Lawrence G. McMillian – Barron’s
A simple indicator can tell when it’s safe to jump back into the stock market.
http://jlne.ws/12lsxNV Introduction To Options Strategies For ETF Investors
Justin Kuepper – ETF Database
Stock options provide traders and investors with an easy way to control the risk-to-reward profile of a trade or investment. While some aspects of options trading can be complicated, the basics are relatively easy to understand and implement in everyday situations, since all options boil down to either buying or selling the rights to buy or sell an underlying security at specific times and prices.