Lead Stories

U.S. options exchanges sound alarm on new tax rules
* Tax rules meant to crack down on dividend-tax avoidance
* Exchanges, others fear new rules overreach
By Patrick Temple-West and Ann Saphir, Reuters
WASHINGTON, April 26 (Reuters) – Options exchanges and other financial players worried about proposed new tax rules on U.S. dividend tax withholding for foreign investors will vent their objections at a public hearing held by the U.S. Internal Revenue Service on Friday. In January, the IRS and the Treasury Department published the proposed rules – expected to kick in on Jan. 1, 2013 – that would put withholdings for foreign investors on dividend-equivalent swap payments on a par with stock dividends.
http://jlne.ws/KhpdeH

Margaret Williams Promoted to New Role of Deputy Chief Regulatory Officer
CHICAGO, April 27, 2012 /PRNewswire/ — CBOE Holdings, Inc. (NASDAQ: CBOE) today announced that Margaret Williams has been promoted to the new role of Deputy Chief Regulatory Officer of the Chicago Board Options Exchange (CBOE). Williams will perform this role for CBOE, C2 Options Exchange (C2) and CBOE Stock Exchange (CBSX).
Williams, a 26-year veteran and Vice President of CBOE’s Regulatory Services Division, will continue to report to Timothy Thompson, Chief Regulatory Officer and Senior Vice President, Regulatory Services Division.
In this new position, Williams will help to set the strategy for the exchanges’ key regulatory areas and will serve as a regulatory liaison to the Securities and Exchange Commission (SEC). Among her responsibilities in this new role, she will oversee training of exchange regulatory staff, establish and monitor internal controls for the Regulatory Services Division, ensure that rule filings and policy changes are fully integrated into exchange regulatory and business systems, and manage development requirements for exchange surveillance systems.http://jlne.ws/I8k7lt

Chicago Board Options Exchange Promotes Regulatory Officer
By Jacob Bunge Of DOW JONES NEWSWIRES
CHICAGO (Dow Jones)–The parent of the Chicago Board Options Exchange promoted a long-serving offical to deputy chief regulatory officer as a federal investigation into its compliance functions continued.
Margaret Williams, previously vice president of CBOE’s Regulatory Services Division, will take on the new role as the biggest U.S. options exchange continues to shuffle its market regulation division following the departure last month of two veteran officials. CBOE Holdings Inc. (CBOE) in late February disclosed that the Securities and Exchange Commission had opened an investigation into the exchange operator’s supervision of traders on its markets. The investigation focused on CBOE’s role as a self-regulatory organization, supervising market activity and carrying out examinations of registered trading firms.
http://jlne.ws/Iejtns
CBOE beefs up self-regulation amid SEC probe
chicagotribune.com
CBOE Holdings Inc. is beefing up its self-policing team amid a Securities and Exchange Commission probe into its self-regulatory compliance, appointing a deputy chief regulatory officer to oversee internal controls and surveillance. Margaret Williams, who was promoted to the new role on Friday, has been vice president of CBOE’s regulatory services division and will add the new responsibilities to her job, a CBOE spokesman said.
http://jlne.ws/JfAYRt

Technology

Chicagoan Saliba Joins Heritage Board
Washington, D.C., April 27, 2012—Chicago financier Anthony J. Saliba has been named to The Heritage Foundation’s board of trustees, the prominent think tank announced. Saliba joins a group of 23 other business leaders, ambassadors and policymakers who serve the policy research institute as trustees, Board Chairman Thomas A. Saunders said.
“We’re delighted to have the benefit of Tony’s expertise and passion for the conservative cause,” said Heritage President Edwin J. Feulner, himself a Chicago native. “Tony is as comfortable encouraging downcast men at the local homeless shelter as he is rubbing shoulders with Chicagoland’s captains of industry.”
Saliba is an executive managing director of BNY ConvergEx Group, an investment technology firm. He is also chief executive officer of LiquidPoint, a company he started 13 years ago and was bought by ConvergEx in 2004.
http://jlne.ws/IaoET7

TD Ameritrade Launches Customized Thinkpipes Options Platform for RIAs
New technology gives advisors analytics and streaming market dataBy John Sullivan, Advisorone
In a debut of sorts at IMCA’s annual conference in National Harbor, Md. on Tuesday, TD Ameritrade demonstrated its new thinkpipes platform for AdvisorOne. Thinkpipes is an “advanced, highly customizable trading platform for advisors that is designed to meet their trading needs for equities or exchange-traded funds (ETFs), as well as those looking to start or expand their use of options strategies,” said Bob Mahoney, director of technology product management for TDAI. The platform is based is based on its thinkorswim technology, the options trading platform acquired by TD Ameritrade in 2009 and integrated into other company offerings in August of last year.http://jlne.ws/IanhE6

NYSE Euronext’s strategy to fill its Liquidity Centers The markets are soft as NYSE Euronext’s Basildon data center undergoes a transformation and the firm rolls out its global liquidity center strategy
by Ambrose McNevin – DatacenterDynamics
Two of the world’s largest stock exchanges reported soft financial results this week as both Nasdaq and Deutsche Borse missed analyst revenue estimates. A third, NYSE Euronext, reports its results on Monday.
The company’s data center strategy has been placed at the heart of its business as the company builds out a network of liquidity centers across the globe.
When it opened in 2010 NYSE Euronext’s Basildon data center represented a huge strategy play for the stock exchange operator. Unlike Nasdaq it decided to not to rely solely on third party data centers from which host its exchanges.
http://jlne.ws/I8A8I0

Strategy

Advanced Trade Alert Bull Put Spread On VXX
Seeking Alpha
Strategic Mindset:Expecting an increase in market volatility and risk based on upcoming events in Europe. VIX and VXX should increase.
Target: VXX trading @ $16.22
Commit Criteria: VXX Implied Volatility near its low again and there is a solid probability of an increase in risk and volatility coming up next week. The all time low of the VXX was 15.57 on 3/26. This low is higher than the short Put and will hopefully provide a solid backstop for this trade.
http://jlne.ws/JrFZdX

Events

OIC Presents New Research on Option Based Risk Management in a Multi-Asset WorldWhat: OIC invites you to the official release of new research on “Option Based Risk Management in a Multi-Asset World,” by the University of Massachusetts at the 30th Annual Options Industry Conference.
Building on our previous collar study, “Loosening Your Collar: Alternative Implementations of QQQ Collars,” this new research analyzes collar strategies across a wide range of asset classes, including equity, currency, commodity, fixed income and real estate during the financial crisis and subsequent market recovery.
When: Thursday, May 3th, 5:30pm CST
Where: The Roosevelt Hotel New Orleans, Chamber 3, 123 Baronne Stre
et, New Orleans, LA

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