| October 02, 2017 | | | |  | Jeff Bergstrom
Editor
John Lothian News | |
|
| | | | Lead Stories | | | Another Low Volatility Record Is About to Be Smashed
Robert Lang - TheStreet
What we have witnessed so far this year with the VIX, the volatility indicator that is supposed to measure levels of fear, is astonishing. In July, it set a record for consecutive days under 10%. That record may get smashed again in the coming days.
jlne.ws/2fLaqFE
The Fed is going to make interest rate risk great again (sort of)
Matthew C Klein - Financial Times
The portfolio of Treasury bonds and mortgage-backed securities guaranteed by Fannie Mae, Ginnie Mae, and Freddie Mac is expected to shrink by a third between now and 2021, after which the balance sheet will grow in line with demand for physical currency, foreign dollar deposits, etc.
But even as the balance sheet grows, holdings of agency MBS are expected to keep shrinking. The plan is to start in October by refraining from reinvesting some of the principal payments from maturing bonds into new debt.
jlne.ws/2fKCcSX
Low volatility, correlations, and other confounding market riddles
Ryan Vlastelica - MarketWatch
If you look at the U.S. stock market in a certain way, most of the trading action in 2017 makes sense. The labor market is strong, corporate earnings are improving, and there's a chance that business-friendly tax changes will be enactedÂall obvious positives fueling a market that's been hitting record after record.
Looked at in another light, however, and there's a lot about this market that makes no sense at all.
jlne.ws/2fDuhXf
What rose in the third quarter? Stocks, bondsÂbasically everything
Ryan Vlastelica - MarketWatch
Once again, a "set it and forget it" strategy has paid off for investors.
The third quarter was another winner across the economy, with basically all regions, sectors, commodities, and bond categories seeing gains over the period.
jlne.ws/2fLfaei
Weekend Review of VIX Futures and Options - 9/25/2017 - 9/29/2017
Russell Rhoads - CBOE
VIX remains at low levels and the curve continues to be steep as the volatility markets appear to be braced for 'something'. That something is probably an unknown unknown that will shock some very complacent markets.
jlne.ws/2fLwVKx
Shareholders should beware of 'empty voting'
David Milstead - The Globe and Mail
"Say that you have a hedge fund that owns a million shares, and it buys a limited number of put options on the shares, so in that circumstance it would be an empty voter because it would have a million votes, but its economic interest is not a million votes because of the put options it owns," says Henry T. C. Hu, a professor at the University of Texas School of Law who coined the "empty voting" term. "So in effect, the vote the hedge fund has is emptied of the corresponding economic interest."
And, Mr. Hu says, "If it buys a large enough number of put options its economic interest can become negative.
jlne.ws/2fLflXl
| | | | | | Exchanges and Clearing | | | Intercontinental Exchange Announces Record Notional Cleared for Credit Default Swaps; Launch of New Single Name Contracts on ICE Clear Credit
Intercontinental Exchange
Intercontinental Exchange (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, announced record monthly notional value cleared for credit default swaps (CDS) in September, with over $1.75 trillion in gross notional and a daily record of over $450 billion cleared on September 20.
Additionally, ICE Clear Credit, ICE's U.S.-based CDS clearing house, has launched clearing services for additional single name CDS instruments referencing emerging market and Asia-Pacific corporate and sovereign entities. This launch expands ICE's CDS footprint and offers customers more diversified risk management services combined with capital and operational efficiencies.
jlne.ws/2fKgbDt
Eurex won CTA Intelligence European Services Awards
Eurex
Eurex was awarded the 'Best Exchange - Overall' in the CTA Intelligence European Services Awards 2017 as a recognition of their footprint in the European CTA investment manager community. Eurex has been regarded as the leading exchange in this client segment, a reflection on both the quality of the listed derivatives suite at the exchange and also the relationships and client services that are provided.
jlne.ws/2fJXUGo
CBOE Holdings Announces Date of Third-Quarter 2017 Earnings Release and Conference Call
PR Newswire
CBOE Holdings, Inc. will announce its financial results for the third quarter of 2017 before the market opens on Tuesday, November 7, 2017. A conference call with remarks by the company's senior management will begin at 7:30 a.m. Central Time (CT), 8:30 a.m. Eastern Time (ET).
/goo.gl/RWwJtj
| | | | | | Regulation & Enforcement | | | Another MiFID II impact: Best execution of derivatives
Rick Baert - Pensions & Investments
Add derivatives transaction cost analysis  measurement of best execution  to the list of services that could grow with the advent of MiFID II in January.
Required disclosure of trade execution data under the European Union's Markets in Financial Instruments Directive II, effective Jan. 3, has transaction cost analysis providers saying they expect more institutional investors  pension funds, endowments and foundations, and their money managers  to seek third-party help in reporting best-execution data.
jlne.ws/2fLgGx8
Taking Down Binary Options One Company at a Time - The Birman Law Story
Vicky Law - HuffPost
A boutique Israeli law firm has established itself as the epicenter of the ongoing legal battle against unregulated binary options firms & Forex operations. Birman Law, based out of Tel Aviv, Israel, has quickly become the go-to legal practice for victims of these internet scams. Birman Law was founded by Veronica Birman, an Israeli lawyer whose vast experience in financial fraud and litigation, specifically in the binary options space, has enabled her to be at the forefront in the fight to recoup her client's stolen money.
jlne.ws/2fLh0vQ
Is Binary Options Always a Scam?
Ankur Shah - ValueWalk
From the outside, it seems as though the binary options industry is going through a torrid time; platforms closing, Securities & Exchange Commission (SEC) warnings, publicly traded companies being forced to delist and a plethora of consumer complaints has caused havoc for the industry in recent months.
Is binary options a legitimate industry being tarnished with the brush of a few unethical actors or, is there a bigger, underlying problem in the industry as a whole? With so much misinformation out there, we wanted to understand what is really happening.
jlne.ws/2fLky1b
****JB: "Is", "Are"...I probably should not nitpick about grammar but I can't help it. That one bugs me.
| | | | | | Strategy | | | Watch Small Caps If You're Looking for Signs of Volatility Returning
Helene Meisler - TheStreet
The relentless rise in the small-caps (using the Russell 2000) is reminiscent of the early part of 2012 when it seemed as though the Russell 2000 was up every single day for weeks (it wasn't, but it felt that way). So, I looked back to see if we found any similarities between then and now.
jlne.ws/2fLhl1D
Are U.S. Markets Setting Up For An Early October Surprise?
Chris Vermeulen - Investing.com
Many analysts have recently warned that the US markets are setting up for a potentially massive correction, 40~70% some warn. Our own analysis has shown massive market cycles that correlate with an October market correction. Our VIX cycle analysis indicates that we should be expecting a spike in the VIX right now (within the next 3~4 days). What does all this mean in reality for the average investor?
jlne.ws/2fLmE1c
WisdomTree CBOE S&P 500 PutWrite Strategy Fund(NYSE:PUTW): Worth Another Look
ETF Daily News
WisdomTree believes this strategy can help reduce portfolio beta and potentially provide higher risk-adjusted returns over the long run.
Since the cost of protection - option premiums - tends to decline during periods of low volatility, one question often comes up: Is now the right time to be collecting premiums by selling puts, when volatility is so low?
My analysis below will show why sticking to the basics of investing can answer this question and help investors with the risk mitigation they look for.
jlne.ws/2fLleUp
| | | | | | Education | | | VIX Options Trading: Learn How to Analyze and Understand Volatility
Thomas Preston - TD Ameritrade
Who knew 20 years ago that volatility would become such a popular topic in market discussions? When the CBOE introduced the original VIX in 1993, it was an esoteric, "professionals-only" thing. Now we're seeing the price of the VIX on our trading platforms and TV, we're interpreting volatility's impact on the markets, and yes, we're trading it.
jlne.ws/2fK1X5F
Options Trading Strategies: Diagonals, Iron Condors, and More
Thomas Preston - TD Ameritrade
Some traders rely on strategies that combine positive time decay (theta) and defined risk. Positive theta might be beneficial in that time is on your side, all else being equal, and defined risk might deliver the confidence that no matter what a stock, index, or market does, a trading loss won't exceed a size you can know when you enter the trade.
jlne.ws/2fKOvOM
| | | | | | Miscellaneous | | | Meat, Marijuana and Call Options
Matt Levine - Bloomberg
When I tell people that I am a financial columnist they sometimes ask me, like, will the stock market go up or whatever, and I have to shamefacedly tell them that I'm not that kind of financial columnist. I don't make predictions about stuff. "If I knew that, I wouldn't be doing this, har har har," I sometimes say, a trick I learned as an investment banker.
jlne.ws/2fJfWbM
| | | | |  | | | | JLN Options is sponsored by: | | | | | |  |  |  | | | | | |  |  |  | | |
|
|
| | | |
| | | | John Lothian News (JLN) is the news division of John J. Lothian & Company, Inc. (JJLCO). The online media and financial services firm is staffed by derivatives industry, journalism and technology professionals. | | | | | | | John Lothian News Editorial Staff: | | | John Lothian
Publisher | | | Jim Kharouf
Editor-in-Chief
| | | Sarah Rudolph
Managing Editor
| | | Jeff Bergstrom
Editor
| | | Lysiane Baudu
Editor
| | | Spencer Doar
Editor
| | |
|
|
 | |
Disclaimer: All John Lothian Newsletters, JohnLothianNews.com, MarketsWiki.com and MarketsReformWiki.com are products of John Lothian News, a division of John J. Lothian & Company, Inc. The opinions expressed in all John J. Lothian & Company, Inc. publications are strictly those of their respective editors. They are intended solely for informative purposes and are not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Security futures are not suitable for all customers. Futures and options trading involve risk. Past results are no indication of future performance. Nothing on any John J. Lothian & Company site should be considered an endorsement by any sponsor of any website or newsletter content.
© 2017 John J. Lothian & Company, Inc. All Rights Reserved. |
|
|
