JLN Options: TABB Says US Equity Options Market Makers Need Scalable Technology to Compete in Today's Complex Market Structure

Feb 25, 2013

Lead Stories

TABB Says US Equity Options Market Makers Need Scalable Technology to Compete in Today’s Complex Market Structure
Press Release (MarketWatch)
US equity options market makers tell TABB Group they are re-examining business models due to declining volumes, stagnating volatility and rising technology expenses that have created a business environment favoring larger firms with technology capable of scaling. TABB Says US Equity Options Market Makers Need Scalable Technology to Compete in Today’s Complex Market Structure
http://jlne.ws/XwWA79

CME Rejected Settlement With Regulators 
The Wall Street Journal
CME Group has rejected a settlement with the Commodity Futures Trading Commission of charges that two former traders leaked details of customer trading
http://jlne.ws/ZDNwjZ

Options Traders Brace for Declines Ahead of Sequestration
Kaitlyn Kiernan, The Wall Street Journal
As the deadline for “sequestration” approaches, an options investor Friday made a big bet that the top exchange-traded fund tied to the S&P 500 could head lower by the deadline at the end of next week. But longer term, investors see stocks resuming the year’s gains by the end of the quarter.
http://jlne.ws/ZvmEPa

CME Said to Approach Deutsche Boerse to Weigh Deal Talks
Nandini Sukumar, Bloomberg
CME Group Inc. (CME), the world’s largest futures exchange, has approached Deutsche Boerse AG to consider beginning talks on a merger, according to four people familiar with the situation. 
http://jlne.ws/VHW5Xu

Deutsche Boerse and CME Would Make Strategic Sense, Face Political Hurdles
David Benoit, The Wall Street Journal
There’s been some back and forth this morning regarding what would amount to yet another major global exchange merger, or may not.
http://jlne.ws/V1pNrj

Deutsche Boerse says not in merger talks with CME
Reuters
Deutsche Boerse said it was not in merger negotiations with CME Group Inc following a media report that CME had approached the German stock exchange operator about a tie-up.
http://jlne.ws/15KcPRO

SEC Examining How Exchanges Develop Order Types
The Securities and Exchange Commission has begun inspecting how all the nation’s stock exchanges develop, refine and approve new types of buy and sell orders, in the face of a great proliferation in order types.
http://jlne.ws/V1qTmS 

New Hedge Fund Deposits to Triple, Deutsche Bank Says
Bei Hu, Bloomberg
New allocations to hedge funds may more than triple this year, pushing the global industry’s assets to a new high, according to an annual survey by Deutsche Bank AG. (DBK)
Hedge fund assets worldwide may increase 11 percent to $2.5 trillion by year-end, according to the survey by the Germany’s largest bank. Investors indicated they will add $123 billion of capital to the industry, in addition to investment returns that are expected to boost assets by $169 billion, the Frankfurt- based bank said. 
http://jlne.ws/ZDNBnR

Optimizing derivatives operations to meet regulatory challenges 
Geoff Harries, The Asset
OTC derivatives market reforms are supported by all G20 countries and in time, perhaps the goals of increased transparency and liquidity can be achieved along with reductions in counterparty and systemic risk. However, fund managers must make decisions today about how to comply with these regulatory challenges which will have immediate and strategic impacts on their businesses. Regulatory change presents opportunities to optimise derivatives operations.
http://jlne.ws/13JJEdQ

REGULATION

SEC Wins Asset Freeze After Heinz Traders Fail to Appear
Patricia Hurtado & Christie Smythe, Bloomberg
A U.S. judge froze a Goldman Sachs Group Inc. (GS) account that regulators say was used to make suspicious trades in H.J. Heinz Co., after unknown traders failed to appear in court to defend their claims to the assets. 
http://jlne.ws/X6vMv3

Judge extends freeze on account linked to Heinz trades
Bernard Vaughan and Katharina Bart and O, Bloomberg
A U.S. judge has extended a freeze on a Swiss account linked to possible insider trading in H.J. Heinz Co call options just before the ketchup maker agreed to be bought by Warren Buffett’s Berkshire Hathaway Inc and Brazilian investment firm 3G Capital.
http://jlne.ws/15KhiUO

CME rejects settlement of CFTC charges
The Chicago Tribune
The Wall Street Journal reports: CME Group has rejected a settlement with the Commodity Futures Trading Commission of charges that two former traders leaked details of customer trading
http://jlne.ws/126cry6 

STRATEGY

How to Hedge Your Stock Portfolio 
Steven M. Sears, Barrons
Calculat
ing the right number of options to employ is easy. Knowing exactly when to hedge and by how much isn’t.
http://jlne.ws/X6u4K7

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