JLN Options: Regulators Target Exchanges As They Ready Record Fine

May 17, 2013

Lead Stories Regulators Target Exchanges As They Ready Record Fine  
Jenny Strasburg, Jean Eaglesham and Scott Patterson, The Wall Street Journal
Financial regulators are taking a harder line on exchanges amid concerns over their ability to police the markets they operate, as the SEC prepares to hit one with a record penalty.
http://jlne.ws/10Dgqv2 The Volatility Trade’s Not Dead Yet  
With the CBOE Volatility Index and other volatility measures sagging to relative lows, one might think that the volatility trade is dead.  Not the case, according to our options volume tracking filters which have identified some interesting options activity on the fear gauge, as the last few days have seen an unusual increase in call volume on the VIX proxy.
http://jlne.ws/12Hsn5I Economic Reports Give VIX a Boost
Wall Street Sector Selector
We witnessed a good demonstration of Investor complacency on Thursday, as the Dow Jones Industrial Average managed to reach a record intraday high of 15,302.49 at 11:17, despite a good deal of surprisingly bad economic data.
http://jlne.ws/12HpK3X The Bigger VIX-ture
Adam Warner, Schaeffer’s Investment Research
We get some questions on Twitter, sometimes even related to the CBOE Market Volatility Index.
    “…Seems most of your post [sic] on the VIX stuff is negative biased expecting lower moves. When it jumps you do the same?”
It’s a fair point. I imagine I come off as bearish on volatility with a tendency to read every sporadic sign of VIX strength as unsustainable and ultimately bullish for the market.
http://jlne.ws/12HuvKJ Videocast: Traders shift as VIX drops
http://jlne.ws/12Hunei S&P 500 has more room to run: technical analysis
Jonathan Ratner, Financial Post
Many investors think a correction must be around the corner given the recent strength in U.S. equities, but history suggests otherwise.
The S&P 500 is up more than 15% year-to-date and continues to hit all-time highs, recently pushing the index above 1,650.
http://jlne.ws/12Hu7Mp ETPs Turn To Selling Options To Generate Income
Bill Luby, ETF Daily News
Not long after I penned The Options and Volatility ETPs Landscape, Credit Suisse (CS) added another buy-write / covered call ETP to the mix: the Credit Suisse Silver Shares Covered Call ETN (SLVO).
With SLVO, Credit Suisse is essentially extending the methodology they pioneered with the Credit Suisse Gold Shares Covered Call ETN (GLDI).
http://jlne.ws/12HtWk5 Exchange-traded funds entering new phase of growth
Mark Jewell, BloombergBusinessweek
The headlines about exchange-traded funds suggest there are no limits to the growth of these low-cost, easily traded alternatives to mutual funds.
http://jlne.ws/12HsCOi Decision on put, call options to boost foreign investments: CII [India]
The Economic Times
NEW DELHI: The proposal to allow ‘put’ and ‘call’ options in share purchase agreements would encourage inflow of foreign investment, industry body CII said today.
http://jlne.ws/12HqZ38 Competition among copycats and creatives
Ask a panel of listed derivatives leaders where innovation is going to come from in the market and you can’t be too surprised if the answer is somewhat guarded.
Nevertheless, the London audience of this week’s Futures and Options Association Infonet would still have gleaned a few important take-aways from the panel discussion.
http://jlne.ws/12AQZ1s Banks lift FTSE to 5.5-year highs
Alistair Smout, Reuters
The FTSE top share index hit fresh five and a half year highs on Friday, as banks were buoyed by an upgrade, the prospect of the end of state ownership in the sector and rotation out of defensive stocks.


ICE Clear Europe Named 2013 Clearing House of the Year by Energy Risk Magazine
Press Release (ICE)
IntercontinentalExchange (NYSE: ICE), a leading operator of global markets and clearing houses, announced today that ICE Clear Europe has been named Clearing House of the Year for 2013 by Energy Risk magazine.
http://jlne.ws/YOhcZy The Birth of the World’s Greatest Stock Exchange
Alex Planes, The Motley Fool
On this day in economic and business history…
The New York Stock Exchange was founded on May 17, 1792, when 24 stockbrokers signed an agreement establishing the basic rules for stock trading.


CFTC Moves the Ball Forward on Swap Execution
Doug Ashburn, John Lothian Newsletter
The CFTC votes 4-1 on a package of new rules that nobody likes very much, including the CFTC. Nasdaq posts the latest trading halt caused by a system fault. Regulators prepare to issue a big fine to an exchange, and are considering increasing their regulatory presence there in the future.
http://jlne.ws/12Hp1zP Regulators Overhaul Derivatives Market, but With a Caveat
Ben Protess, Dealbook
Federal regulators approved new rules on Thursday to shine a light on Wall Street trading, but they also softened a crucial aspect of the plan in the face of lobbying pressure from the nation’s biggest banks.


How to Take Profits, but Fly Higher 
Steven M. Sears, Barron’s
Investors can lock in their gains on Delta while using call options to ride the rally if it continues.

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