| June 06, 2017 | | | |  | Spencer Doar
Associate Editor
John Lothian News | |
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| | | | Lead Stories | | | CBOE Holdings Announces Next Stages of Technology Integration Plan
Press Release - CBOE
CBOE Holdings, Inc. today announced that C2 Options Exchange (C2), one of the firm's derivatives markets, is planned to migrate to Bats technology on May 14, 2018.
Beginning in November, C2 trading permit holders may begin basic connectivity testing, and in December, begin certification. Throughout the first quarter of 2018 and into the second quarter, there will be numerous 'dress rehearsal' opportunities for customers to ensure their preparedness for the move. Up until the migration, C2 will operate as is.
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Chicago trader gets 1 year in prison for stealing ex-employer's computer code
Becky Yerak - Chicago Tribune
A former longtime worker at WH Trading has been sentenced to a year and a day in federal prison for stealing secrets from the Chicago-based firm.
Over five months in late 2013 and early 2014, David J. Newman stole all of the securities trading firm's computer code and trading software, downloading more than 400,000 electronic files to multiple thumb drives.
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****SD: Chicago Business Journal has a take too.
Goldman's ex-head of e-trading explains the appeal of algo shops
Dan Butcher - eFinancialCareers
Alastair Hawker cut his teeth at Goldman Sachs. He joined the firm in London in 2002 after graduating from the UK's University of Birmingham and spent 12 years with the firm, rising to become the head of futures electronic trading at Goldman in New York. It was the sort of position other electronic trading professionals would give their eye teeth for, but in June 2015, Hawker quit. Today he works for Quantitative Brokers, a US agency-only brokerage house that provides execution algorithms to clients - most of which are large investment firms.
/goo.gl/uYkEsN
New Academic Study: High Frequency Trading Strategies Contradicts Tired "Adding Liquidity" Pro HFT studies
Themis Trading Blog
Just over seven years ago, I was asked to participate in an SEC Market Structure Roundtable in Washington DC. Joining me on the High Frequency Trading Panel, besides HFT practitioners from RGM and Getco (and others), was Babson College's Professor Michael Goldstein. He was notable at that time, as he asserted that the markets were trading too fast, with dubious benefit. His viewpoint was in stark contrast to the existing HFT Academic Study Consensus (see slide above).
/goo.gl/fJh0v4
Managing FX risk: How to prepare for the unpredictable
Risk.net
"The one unchangeable certainty is that nothing is certain or unchangeable." Those words were uttered by former US president John F Kennedy in a State of the Union address before Congress in 1962. Nothing could be truer of today's financial markets, where market participants across the spectrum are faced with new challenges and opportunities to reform and reshape how their business is run in order to prepare now and for the future.
/goo.gl/UxaBQH
UK must speak up to preserve global markets role after Brexit: ICE CEO
Huw Jones - Reuters
Britain must show its support for markets with measures such as keeping taxes low if it wants to remain a top global financial center after Brexit, Intercontinental Exchange (ICE.N) Chairman and Chief Executive Jeff Sprecher said on Tuesday.
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| | | | | | Exchanges and Clearing | | | Deutsche Boerse chief says future mega exchange deals unlikely
Joe Parsons - The Trade
The head of the Frankfurt-based exchange group, Deutsche Boerse, believes further mega exchange deals, like the failed merger between his firm and the London Stock Exchange, will be unlikely because of national politics.
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Relocating euro clearing "expensive and disruptive" says derivatives body
John Bakie - Global Custodian
The Futures Industry Association (FIA) has warned European politicians that a forced relocation of euro clearing would be disruptive and expensive.
In a response to European Commission communications which have listed forced relocation or enhanced supervision of euro clearing could be options to safeguard the financial system.
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CBOE's May Options Volumes Record Second Highest Reading in 2017
Jeff Patterson - Finance Magnates
The Chicago Board Options Exchange Holdings (CBOE, NASDAQ: CBOE), one of the largest operators in the US equity options market, has just reported its trading volumes for the month ending May 2017. The most recent figures saw a rebound in key segments, helped by markets that were quite active in the United States on account of higher volatility.
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Taking a second look at the maker-taker model
Nicole Bullock - Financial Times
The winds of change that have blown into Washington DC may soon ruffle Wall Street. A new US administration promising reform of financial regulation and widespread staff moves at the Securities and Exchange Commission, including a fresh chairman in Jay Clayton, could signal a shift in one of the key practices underpinning trading: the issue of rebates, whereby equity exchanges and some other private venues pay brokers to provide prices on their platforms.
/goo.gl/6GY0OR
Euronext announces volumes for May 2017
Euronext
Euronext, the leading pan-European exchange in the Eurozone, today announced trading volumes for May 2017.
/goo.gl/jJC24N
Bats Launching New Regional European Indices
CBOE
Bats Europe (Bats), a CBOE Holdings, Inc. company and the region's largest equities exchange operator, today announced it will expand its European index franchise with the planned launch of 18 new regional European benchmark indices, which include the Bats Eurozone 50, Bats Nordic 40 and Bats Europe All Companies.
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****SD: Indicative of the CBOE's giant expanded reach now.
NSE's global trading platform goes live at GIFT-IFSC
Hindu Business Line
The National Stock Exchange of India on Monday launched its international exchange, NSE IFSC, at GIFT International Financial Services Centre (IFSC) at GIFT City in Gandhinagar.
/goo.gl/62t0pp
| | | | | | Moves | | | TRADING UP: Citadel, Citi, Goldman Land Top Execs
John D'Antona - MarketsMedia
Citadel Securities announced that Joe Mecane is joining the firm as Head of Execution Services. According to the firm, Mecane will lead Citadel's equity, options, and ETF businesses, bringing his deep electronic trading experience and market structure expertise to bear on behalf of clients.
/goo.gl/4A5U7z
****SD: Recap of some recent action.
| | | | | | Technology | | | Sterling Trading Tech Unveils a New Risk Solution to Calculate Portfolio Margins in Real-Time
BusinessWire
Sterling Trading Tech (STT) announced a new risk solution, the Sterling Risk Engine or SRE. The Sterling Risk Engine calculates intraday, real-time risk based haircuts based on the OCC methodology for portfolio margin. The SRE can also be used to simulate market shocks and volatility shifts at user-defined levels.
/goo.gl/Rr49aU
| | | | | | Strategy | | | The Daily Prophet: There's a New 'Most Crowded Trade' in Markets
Robert Burgess - Bloomberg
Remember when it seemed like everybody had to own dollars and equities and sell Treasuries because the Trump administration's pro-growth agenda would incite inflation and higher interest rates? Well, that's going to take a lot longer than anticipated and the many investors who piled into the so-called Trump trade have gotten out. Now, they're piling into Europe.
jlne.ws/2qXLvmP
SVXY: When Volatility Is Very Low, Buy 'Smart Volatility' (II)
Seeking Alpha
Weeks ago, I wrote my first article for SA devoted to SVXY long options: SVXY: When Volatility Is Very Low, Buy 'Smart Volatility'. First of all, I want to thank all the SA members that kindly commented to contribute to the trade, some of them with really good ideas and smart points of view, they helped to enrich the idea I introduced: buying SVXY strangles when the implied volatility (IV) is historically low.
jlne.ws/2qXPUpV
| | | | | | Miscellaneous | | | Ray Dalio, Billionaire Head Of World's Largest Hedge Fund, Slams Trump Over Paris Accord Exit
Antoine Gara - Forbes
With CEOs ranging from Goldman Sachs head Lloyd Blankfein to Disney's Robert Iger and Apple's Tim Cook criticizing President Donald Trump's decision to exit the voluntary Paris Climate Accords, Ray Dalio the founder and chairman of hedge fund Bridgewater Associates added his own scathing critique, arguing in a pointed essay the maneuver indicates Trump is choosing to govern with conflict and towards narrow interests, potentially disrupting his presidency.
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