JLN Options: Options Week in Review for December 14 – 20, 2012

Dec 20, 2012

ICE announced it would buy NYSE Euronext, turning the recent upstart into a financial behemoth to rival the CME Group. Revenge must be sweet for Jeffrey Sprecher, ICE’s CEO, who had gone up against CME to try to purchase the CBOT back in 2007. MIAX began trading Monday as the newest equity options exchange and selected Equinix data centers for its primary and backup sites. Representatives from exchanges and broker dealers aired their concerns about the war over order flow to a Senate Banking Committee hearing. NYSE Euronext and Nasdaq OMX executives argued that too much volume is traded outside of exchanges at ATSs and that this is harming price discovery. They blamed Reg NMS for the increase in “dark trading.”  Credit Suisse said it would do a 1-for-10 reverse split on the VelocityShares Daily 2x VIX Short Term ETN after the notes lost most of their value in the past year. In spite of all the uncertainty over the fiscal cliff and the change in leadership at the Federal Reserve, the VIX continued to trade more than 60 percent below its 2011 peak.

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Past Options Newsletters

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