Commentary & Insight

John Lothian Announces Summer Intern Industry-wide Education Program in Chicago
John Lothian – JLN
John J. Lothian & Company, Inc. is pleased to announce today the creation of a Chicago-based industry-wide summer intern education series to introduce the history, innovation, key leaders and future opportunities to participating interns, summer workers, new employees and those interested in careers in the trading and markets.  The series, which kicks off on July 16,  features presentations from a select group of industry leaders, innovators, entrepreneurs, attorneys, technologists, investors, traders and other industry participants.
Click here for more information and/or to purchase tickets.

Lead Stories

Thomson Reuters to buy FX option business from Tradeweb
Thomson Reuters Corp (TRI.TO) (TRI.N) has agreed to buy the foreign exchange options business of Tradeweb Markets for an undisclosed amount, the company said on Tuesday.

June 2013 Is Busiest Month On Record For VIX Futures Trading At CFE
Press Release (CBOE)
The CBOE Futures Exchange, LLC (CFE) announced today that June 2013 was the most-active trading month for futures on the CBOE Volatility Index (VIX) in exchange history.  New records for total trading volume and average daily volume (ADV) were set during the month and for the second quarter of the year.

Bullish ISM Report Kicks VIX
Wall Street Sector Selector
A better-than-expected June Manufacturing PMI report from the ISM gave stocks a boost and pushed the VIX closer to 16.

The New Paradigm for OTC Valuation  
Rohan Douglas – Advanced Trading
The methods for pricing derivatives have grown increasingly complex, and legacy systems and processes might not be ready for the challenge.

Well-timed options bets on Onyx Pharmaceuticals deliver pay-off
Doris Frankel – Reuters
Some options traders appeared to have scored a win with well-timed bullish bets on Onyx Pharmaceuticals (ONXX.O) before a rival made an unsolicited bid for the cancer drug maker.
** Things that make you go “hmmm”. -JB

Tracking Volatility: How The VIX Is Calculated  
When market volatility spikes or stalls, newspapers, websites, bloggers and television commentators all refer to the VIX.Formally known as the CBOE Volatility Index, the VIX is a benchmark index designed specifically to track S&P 500 volatility. Most investors familiar with the VIX commonly refer to it as the “fear gauge”, because it has become a proxy for market volatility.
** Perhaps this is something most of our readers know but thought this article was particularly well done and worth a look. -JB


ICE Clear Europe Completes Clearing Transition of NYSE Liffe Derivatives Contracts.
Press Release (NYSE Euronext)
ICE Clear Europe, a wholly-owned subsidiary of IntercontinentalExchange, and NYSE Liffe, the derivatives division of NYSE Euronext, today announced the completion of the clearing transition for the London-based derivatives market of NYSE Liffe to ICE Clear Europe.

ICE Reports Second Quarter Futures ADV up 3%; Buyside CDS Clearing Surpasses $1.5 Trillion
Press Release (ICE)
IntercontinentalExchange (NYSE: ICE), a leading operator of global markets and clearing houses, today reported futures volume for June and the second quarter of 2013. ICE’s average daily volume (ADV) for futures and options for June 2013 was 3,465,509 contracts, a decrease of 4% from the prior June. Total volume in June 2013 was 69 million contracts. ADV for the second quarter 2013 was 3,544,688 contracts, an increase of 3% from the prior second quarter. All prior period contract volumes have been adjusted to include the transitioned futures contracts, which previously traded in ICE’s OTC markets.

CME’s Daily Trading Volume Up in June, Led by Strong Interest-Rate Futures Volume 
Tess Stynes – The Wall Street Journal
CME Group Inc.’s (CME) daily trading volume climbed in June, driven by strong growth in its key market for interest-rate futures, which saw the highest monthly average daily volume since January 2008.

OCC Earns Honorable Mention in Ragan’s PR Daily Awards in The Best Annual Report Category
Press Release (OCC)
OCC announced today that its 2011 annual report received an Honorable Mention in the Annual Report category for the Ragan’s PR Daily Awards.
** If you are interested in seeing what the OCC 2011 annual report looked like (it is pretty slick…almost makes reading those things interesting) you can see it here. (PDF) -JB


Nasdaq Calls for Regulatory Parity with Dark Pools
Peter Chapman – Traders Magazine
In the latest issue of Nasdaq OMX Group’s in-house magazine, “Market View,” John Zecca, a Nasdaq senior vice president and its head of U.S. market regulation, called for operators of alternative trading systems, or dark pools, to be subject to the same oversight as exchanges.

Departure of Chicago director adds to vacancies in SEC leadership
Sarah N. Lynch – Reuters
The Securities and Exchange Commission announced on Monday that the director of its Chicago office was leaving after 27 years, marking the latest departure since Mary Jo White took the helm of the agency earlier this year.

When a regulator fines a regulator
Joseph D. Edmondson Jr. and Barry J. Mandel  – Lexology
Any firm or individual who has recently been on the receiving end of a disciplinary sanction, or even a difficult and expensive regulatory inquiry, from the Chicago Board Options Exchange (CBOE) may take some solace in something of a pleasant irony:

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