JLN Options: VIX Futures Open Interest Reaches New High

Jan 11, 2013

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Lead Stories

VIX Futures Open Interest Reaches New High
Press Release (CBOE)
The CBOE Futures Exchange, LLC (CFE) announced that open interest in futures on the CBOE Volatility Index (VIX Index) reached a new all-time high of 438,038 contracts this morning. This morning’s high surpassed the previous high mark of 431,265 VIX futures contracts on September 18, 2012.

Extension for Audit Trail of Stock, Options Trades Up in Air
Tom Steinert-Threlkeld, Traders Magazine
So far, the Consolidated Audit Trail appears to be in limbo.
Last summer, the Securities and Exchange Commission originally planned to give the securities industry 90 days to come up with a plan to create a CAT that would deliver to it overnight details every day of all stock and options transactions on national exchanges.

SEC effectiveness questioned after BATS error
Ronald D. Orol, MarketWatch
Computer glitches that allowed trades executed at BATS Global Markets Inc. to violate rules are yet another example of technology problems damaging confidence and raising concerns about the effectiveness of U.S. market regulators, observers said Thursday.

BATS looks to compensate after long-term system error
Anish Puaar, The Trade News
US venue operator BATS Global Markets is assessing compensation options after identifying issues with its matching system that caused almost 450,000 trades to be executed at prices that breached securities regulations.

Bats Blaming Market Rules as Calls of Overhaul Grow
Nina Mehta, Bloomberg
Bats Global Markets Inc., the stock exchange operator that acknowledged four years of trading errors, blamed the mistakes on regulations it says are too complex.
** They need better lobbyists (and a CIO which apparently they don’t have). –JB

Errors Mount at High-Speed Exchanges in New Year
Nathaniel Popper, The New York Times
Confidence-shaking technology mishaps have been an almost daily occurrence at the nation’s stock exchanges in the new year.


ICE would weigh Euronext sale for right offer: sources
Sophie Sassard and Andreas Kröner, Reuters
IntercontinentalExchange would consider selling Euronext as an alternative to floating it if bids for the European stock market emerge during ICE’s planned $8.2 billion takeover of NYSE Euronext, three sources close to the exchange said.

NYSE Arca Continues to Hold #1 Position for U.S. Exchange Traded Product Listings and Exchange Trading
Press Release (NYSE Euronext)
NYSE Euronext (NYX) today announced NYSE Arca, its fully electronic U.S. equities market, continued to hold the leading position in Exchange Traded Products (ETPs) listings and exchange trading in 2012. NYSE Arca market makers provided the best bid or offer of any exchange, nearly 90% of the time, for all U.S. ETPs. NYSE Arca also maintained the highest level of market share amongst all ETP U.S. exchanges at over 20% for all of 2012.


BATS glitch is latest to highlight the complexity of the markets
John McCrank, Reuters
The complexity of modern markets means there are bound to be more events such as the systems error that led to hundreds of thousands of trades being executed improperly on BATS Global Markets over the past four years, the head of the No. 3 U.S. equities exchange said on Thursday.
**It’s not just a bunch of guys under a buttonwood tree anymore. — SR

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