LEAD STORIES

TOM keeps up pressure on Liffe
Anish Puaar – Financial News
The Order Machine, a Netherlands-based options trading venue part owned by Nasdaq OMX, has maintained its market share in Dutch index options, despite a legal challenge from NYSE Euronext.
http://jlne.ws/15PcwBu

Thomson Reuters acquires start-up options technology vendor
Joel Clark – FX Week
SigmaGenix, a London-based provider of FX options technology, has been acquired by Thomson Reuters and its chief executive Jeremy Gelber becomes global head of FX options.
http://jlne.ws/14SRgPe

U.S. Stocks Decline as Investors Weigh Confidence Data
Alex Barinka – Bloomberg
U.S. stocks fell, leaving the Standard & Poor’s 500 Index on track for its biggest weekly drop since June, as investors weighed data showing housing starts climbed in July while a gauge of consumer confidence fell.
http://jlne.ws/16QPuwJ

Videocast: VIX trading calms down
optionMONSTER
http://jlne.ws/16QQBwz

Fear not! Vix spike may be bullish, say charts
Lee Brodie – CNBC
The Vix, or so-called fear index shot higher on Thursday, hitting its highest level since July 8th. But contrary to what you may think, it’s no reason to be afraid.
According to chart patterns, the move could actually be positive.
Huh?
http://jlne.ws/16QQNMi

BATS Attracts 2 Private Equity Investors: What Does it Mean? 
Ivy Schmerken – Wall Street & Technology
The entry of new investors tells me that both private equity firms see growth potential in global trading and the exchange business and that they don’t see the last week’s network glitch as a major problem.
http://jlne.ws/1cF7AJg

Hedge-Fund Clone ETFs Are Whooping the Index — Not to Mention Hedge Funds
Brendan Conway – Barron’s
It’s 13F week, when we get a glimpse at last quarter’s moves by the likes of George Soros and John Paulson.
http://jlne.ws/16QOmJu

Longer Hours Increased Corn-Trading Volatility
Jacob Bunge – The Wall Street Journal
Longer trading hours in the U.S. corn futures-market have exposed it to more-violent price swings, according to research by the Federal Reserve Bank of Kansas City.
http://jlne.ws/16QPfSu

Volatility index surges on worries over U.S. stimulus [India]
Abhishek Vishnoi – Reuters India
India’s volatility index gains 29.6 percent, heading towards its biggest single day percentage gain since June 17, 2009.
http://jlne.ws/16QPq00

Barclays FX flow options head departs
FX Week
Gugesh Guganeswaran has left the bank in London; other FX hires at RBC and SG CIB, while BNP Paribas reshuffles in strategy and Credit Suisse appoints a new chief risk officer.
http://jlne.ws/16tCYa8

EXCHANGES

Chicago Stock Exchange Agrees to Pay $300,000 for Trade Errors
Dave Michaels – Bloomberg
Chicago Stock Exchange Inc. agreed to pay $300,000 to settle U.S. regulatory claims that it failed to comply with rules designed to ensure all investors get the best prices.
http://jlne.ws/144zGrQ

NYSE Member Firms Report Second-Quarter 2013 Results  
Press Release (NYSE)
New York Stock Exchange member firms that conduct business with the public reported a second-quarter 2013 after-tax profit of $2.2 billion and revenues of approximately $39.5 billion, compared with a $4.2 billion after-tax profit on revenues of about $43.0 billion in the first-quarter of 2013. Comparative financial results are reported in the table below:
http://jlne.ws/16QOMja

SEC approves ICE’s planned takeover of NYSE
Sarah N. Lynch and John McCrank – Reuters
The Securities and Exchange Commission has approved the takeover of NYSE Euronext by IntercontinentalExchange, according to a regulatory filing made available on the regulator’s website early on Friday.
http://jlne.ws/16tsGqy

REGULATION & ENFORCEMENT

CFTC asks court not to dismiss suit against U.S. Bancorp unit
Dena Aubin – Reuters
U.S. regulators on Thursday asked a federal court not to dismiss their lawsuit against a bank tied to the blow-up of brokerage Peregrine Financial, saying the bank helped bring about millions of dollars of losses for Peregrine customers.
http://jlne.ws/1bCSfoy

TECHNOLOGY

A New ‘Dawn’ in Exchanges’ War on Hackers 
Jacob Bunge – The Wall Street Journal
When prices on some U.S. stocks suddenly zoomed one day last month and others unexpectedly plunged, stock-market officials set out to detect a possible computer glitch or a trading algorithm run amok.
http://jlne.ws/16QO8SW

More Exchange Outages: Do We Learn from the Past? 
Jo Kinsella – Wall Street & Technology
It’s an alert we’ve seen too much lately: a newsflash that the BATS BZX Exchange was down for almost an hour followed two hours later by Direct Edge reporting a technical glitch causing it briefly to stop accepting orders.
http://jlne.ws/1cF7BwC

STRATEGY

Protection Against a Falling Market  
Steven M. Sears – Barron’s
With stocks lower, and options volatility higher, it is time to swing into defensive posturing. We’ve argued in recent weeks that the CBOE Volatility Index (VIX) was too low, and that investors should hedge their portfolios. With the Dow down nearly 200 points, this is a good time to revisit the idea.
http://jlne.ws/14SOnxS

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