JLN Options: VIX Falls As Greece Buys More Time

Jun 18, 2012

Lead Stories VIX Falls As Greece Buys More Time
Brendan Conway, Barron’s
Traders are taking the lack of immediate euro-disaster are a reason to sigh relief. They’re also ramping up speculation on more action from the Federal Reserve. The CBOE Volatility Index just touched the lowest intraday level in over a month, as prices of options to buy and sell the S&P 500 head lower.
http://jlne.ws/M7CKHw Oil, Euro Fall as Spain Yields Surge; S&P 500 Fluctuates
Michael P. Regan, Bloomberg
Costs of options to protect against losses in equities slid today as Greece’s elections eased concern that anti-bailout politicians would take over, jeopardizing the nation’s membership in the euro. The Chicago Board Options Exchange Volatility Index, known as the VIX, lost 10 percent to 18.93. Europe’s VStoxx Index, a measure of Euro Stoxx 50 Index option prices, slipped 13 percent, the most since October, to 29.46.
http://jlne.ws/Nb1t0E
** That is the main bit about options in that article but still a worthwhile read. –JB Deutsche Boerse Asks EU Court to Cancel NYSE-Euronext Merger Ban
Aoife White, Bloomberg
Deutsche Boerse AG (DB1) asked a European Union court to overturn a ban on its planned merger with NYSE Euronext (NYX), saying regulators made errors when reviewing the deal that would have created the world’s biggest exchange.
http://jlne.ws/PalFz6 CME to allow physical settlement for weekly gold options
Reuters
CME Group is allowing investors in its short-term gold option contracts to take delivery of physical bullion in a bid to increase the product’s appeal against over-the-counter gold options.
The biggest operator of U.S. futures exchanges said it will amend the contract of its weekly gold options to let investors exercise into futures contracts effective July 1, pending approval from the U.S. Commodity Futures Trading Commission, CME said in a notice late last week.
http://jlne.ws/PdvoEY Investors to Pour Trillions of ‘Core’ Assets Into Hedge Funds
Elizabeth Pfeuti, aiCIO
Hedge funds could receive a $1 trillion boost from institutional investors over the next five years as pension funds and managers of other large asset pools are regarding sector as core and complementary to their mainstream portfolios, Citi has claimed.
http://jlne.ws/M7vX0p FMC’s caution on algorithmic trading is understandable (India)
Mobis Philipose, liveMint.com (The Wall Street Journal)
The Forward Markets Commission is reported to be close to finalizing guidelines on algorithmic trading for the commodity futures market. A report in Business Standard newspaper last week said the guidelines on algorithmic trading and high frequency trading are likely to be issued within a week…
In fact, the commodity futures market needs a slew of reforms, including the introduction of options and allowing foreign institutional investors, mutual funds and banks to participate. These reforms must happen sooner than later.
http://jlne.ws/M6nhtY
** Let’s hope they get some of these reforms through (certainly in regard to adding options). –JB Shareholders support PLUS exchange sale
Luke Jeffs, Reuters
PLUS Markets Group (PMK.L) shareholders have backed the sale of its loss-making stock market to broker ICAP (IAP.L), which wants the business as a launch pad into futures trading…
ICAP wants PLUS-SX, a regulated exchange, to serve as a platform for its planned move into European futures and options trading.
http://jlne.ws/Nb191R Options Traders Betting on Overturn of Obamacare (Video)
Dominic Chu, Bloomberg
Bloomberg’s Dominic Chu reports that options protecting against losses in health-care stocks are the cheapest in 10 months compared with U.S. equities before the Supreme Court’s decision on President Barack Obama’s industry overhaul.
http://jlne.ws/NKR8d3 (Video)

Exchanges

CBOE Holdings Inc. Stock Upgraded
TheStreet
CBOE Holdings (Nasdaq:CBOE) has been upgraded by TheStreet Ratings from hold to buy. The company’s strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
http://jlne.ws/KgbBk2 Hong Kong Exchange Defends $2.2 Billion Price for LME
Jean Chua, CNBC
Hong Kong Exchanges and Clearing (HKex) has defended its purchase price of $2.18 billion for the London Metal Exchange, after some analysts voiced concerns about the amount it was paying.
Shares in HKEx fell 2.7 percent in early trade on Monday after many analysts said its LME deal was expensive, underperforming the benchmark Hang Seng Index’s 1.5 percent gain.
http://jlne.ws/N0Uq7a London Options and Futures Exchange Appoints Senior Project Manager for Global Financial Operation
Press Release
As part of this expansion, London Options and Futures Exchange has recently announced the appointment of its new Senior Project Manager for Global Financial Operation, Mr. Tom Kaffee. He will soon serve the firm as the Senior Project Manager for its Global Business Department.
Mr. Tom Kaffee has more than 10 years of commodity trading experience, focused on business development and derivatives exchange management. As a Senior Project Manager at the same time Global Business Department Head, Mr. Kaffee will be in charge in leading and supervising the department’s global financial operation including reviews for international trading, maintaining and authorizing its department’s human resources for every project, analyzing every project profits and losses and ensuring fundamental and technical competency.
http://jlne.ws/LsKLLf

Technology

IPC’s Connexus Financial Extranet Offers Connectivity to BATS Global Markets
Press Release
IPC Systems, Inc., a leading provider of voice and electronic trading communications solutions to the world’s top financial services firms and global enterprises, today announced that it now offers connectivity to BATS Global Markets’ U.S. equities and options markets. Connexus provides connectivity in support of all aspects of the trade lifecycle and creates a trading ecosystem that brings together buy-side firms, sell-side firms, inter-dealer brokers, liquidity venues, independent software vendors, market data providers and clearing and settlement firms.
http://jlne.ws/NaZ1ah Redkite Deploys Market Surveillance Application on the Options PIPE(R) Private Financial Cloud
Press Release
Options IT, the provider of the Options PIPE Private Financial Cloud services platform for the exchange, banking, trading and investment communities, today announced that Redkite Financial Markets, a specialist provider of real-time market surveillance systems, has deployed its flagship market surveillance product, Redkite Surveillance, on the Options PIPE Private Financial Cloud.
http://jlne.ws/Lh6V1G

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