JLN Options: Potential Tax Change Could ‘Decimate’ Options Trading Volume

May 24, 2013

Lead Stories Potential Tax Change Could ‘Decimate’ Options Trading Volume  
Kaitlyn Kiernan, The Wall Street Journal
Tabb Group’s Andy Nybo weighed in Thursday and on a proposed tax change that could “decimate trading volumes” in the options industry.
http://jlne.ws/Z5D5DR U.S. options clearer moves to end trade type dominated by Nasdaq
Ann Saphir, Reuters
The clearinghouse for all stock options said Thursday it will adopt a policy aimed at abolishing a dividend-linked trading strategy that critics say could destabilize markets if left unchecked.
http://jlne.ws/Z5E2MB New CBOE CEO Aims to Take Volatility Franchise Global  
Jacob Bunge, The Wall Street Journal
The new chief executive of the Chicago Board Options Exchange said Thursday that he plans to take its highly prized volatility franchise global and is open to deal making to bolster the company’s leading position in stock-options trading.
http://jlne.ws/16TVzw7 New CBOE/CBOT 10-year U.S. Treasury Note Volatility Index (VXTYN)
Matt Moran, CBOE
CBOE and CBOE Futures Exchange (CFE) plan to offer trading on the 10-year Treasury Volatility Index in the future.  The VXTYN Index has the potential to become a popular gauge if there is a future rise in both interest rates and interest rate volatility.
http://jlne.ws/Z5DeqT The VIX Is Sending Odd Signals 
Everiste Lefeuvre, Seeking Alpha
Jitters about a possible earlier-than-expected tapering of QE have temporarily stopped the ongoing rally of stock prices. Interestingly enough, this comes at a time when the VIX and some associated option-linked indicators are showing some interesting patterns.
http://jlne.ws/Z5Dx4V VXX Leads Alternative ETFs Asset Inflows 
Cinthia Murphy, IndexUniverse
Investors have poured more than $83 billion into U.S.-listed ETFs so far this year, and while U.S. equities ETFs have attracted the most investor dollars on a nominal basis, it’s alternatives ETFs that have actually seen their assets grow the most in percentage terms.
http://jlne.ws/Z5F2jM Derivatives trade booms in wake of Japan stock slide
Helen Bartholomew, Reuters
Investors betting on a continuation of Japan’s six-month runaway bull market suffered their biggest scare yet on Thursday as the Nikkei 225 lost more than 7% – its largest one-day loss in more than two years.
http://jlne.ws/Z5D0Ae Mini Flash-Crash Trades Wiped From Tape, But Not Canceled 
Chris Dieterich, The Wall Street Journal
Evidence of the short-lived plunges in shares of American Electric Power Co. Inc. and NextEra Energy Inc. were wiped off the tape, but not from investors’ portfolios.
http://jlne.ws/Z5DDd1 Direct Access Partners Shuts Down
Peter Chapman, Traders Magazine
Direct Access Partners has shut down.
The institutional brokerage stopped handling orders two days ago, sources tell Traders Magazine, after its clearing firm, Goldman Sachs, stopped clearing its trades.
http://jlne.ws/Z5ElXN

Exchanges

CBOE weighs its regulatory role
Lynne Marek, Crain’s Chicago Business
CBOE Holdings Inc. Executive Chairman Bill Brodsky said the options exchange operator could eventually decide not to carry all of the regulatory duties it’s shouldering today.
http://jlne.ws/Z5DWEB Extended VIX futures trading back on track at CBOE
Chicago Tribune
Expanded trading hours for CBOE Volatility Index futures are on track to begin later this year, according to CBOE Holdings Inc. incoming chief executive.
http://jlne.ws/Z5EQAU OCC to Adopt a Policy to Restrict Exercises to Net Long Positions 
Press Release (OCC)
OCC announced today that its Board of Directors approved the adoption of a policy that would require clearing members to restrict exercises in certain accounts, including market maker and joint back-office accounts to the extent each respective account is net long at the end of the trading day. The required netting would occur within each options series.
http://jlne.ws/Z5EfPK CBOE Holdings, Inc. Announces 2013 Annual Meeting Results
Press Release (CBOE)
CBOE Holdings, Inc. (NASDAQ: CBOE) announced the stockholder voting results from its 2013 Annual Meeting held today.
http://jlne.ws/Z5EJoV

Regulation

Former Goldman banker settles SEC ‘pay-to-play’ charges
Lisa Lambert and Jonathan Stempel, Reuters
A former Goldman Sachs Group Inc. investment banker has agreed to a five-year securities industry ban and a record fine to settle U.S. Securities and Exchange Commission charges that he broke rules against influence peddling to win bond underwriting business in Massachusetts.
http://jlne.ws/Z5DNAV

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