| September 18, 2018 | | | |  | Spencer Doar
Editor
John Lothian News | |
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| | | | Lead Stories | | | Credit Suisse Has a Derivative for Every Stock-Market Nightmare
Yakob Peterseil and Sid Verma - BloombergQuint
Bears may have gone into hiding, but Credit Suisse Group AG has found a way to coax them out.
Mandy Xu, the bank's chief equity derivatives strategist in New York, is pitching options that bet on a domino effect toppling the record-breaking rally in S&P 500 stocks. Trades sold to institutional investors by the investment bank envision a scenario in which anything from an inverted yield curve to rising rates to a spike in oil prices triggers an end to the longest bull run in history.
/goo.gl/5UY4bZ
****SD: But is there an app for it?
OCC Declares 2017 Clearing Member Refund Under Approved Capital Plan
OCC
OCC, the world's largest equity derivatives clearing organization, today announced the payment of a refund to clearing members under its approved capital plan. The refund of $78.7 million to clearing members was paid on September 14, 2018.
bit.ly/2Dk7zPd
****SD: The ever controversial refund...
Markets Shrug as U.S., China Exchange Blows in Rising Trade War
Luke Kawa and Liz McCormick - Bloomberg (SUBSCRIPTION)
It could've been worse. It's already priced in. Tariffs won't derail global growth.
Wall Street arrived Tuesday to an escalating trade war and a market that doesn't seem to care all that much. Yes, there was the now-common knee-jerk reaction to last evening's announcement that the U.S. will slap tariffs of 10 percent on $200 billion in Chinese goods. But in short order the yen rebounded, S&P 500 futures erased losses and Asian stocks rallied.
/bloom.bg/2D8eWc9
****SD: Speaking of exchanging blows, who watched Canelo vs. GGG II last weekend? 'Twas a classic. There is another big fight this weekend - Joshua vs. Povetkin.
China to penalize $60 billion of U.S. imports but reduce amount of tariffs it collects
Reuters
China will levy tariffs on about $60 billion worth of U.S. goods in retaliation for the latest round of U.S. tariffs on Chinese products, as previously planned, but has reduced the level of tariffs that it will collect on the products.
/goo.gl/aMZZeq
One jarring statistic shows traders are the most scared in 28 years of a sudden market meltdown
Joe Ciolli - Business Insider
Things are quiet in markets right now. Perhaps too quiet. That's the thought process being employed by traders who are paying the most in at least 28 years to protect against a significant market event. Their trepidation can be seen in the Cboe SKEW Index, which is sitting near its highest level on record, according to data going back to 1990.
/goo.gl/BPZs7P
****SD: I'm throwing a flag for cliches and being a day late to the punchbowl after Bloomberg ran stories yesterday about elevated SKEW - 10 yards from the spot of the foul.
| | | | | | Technology | | | Rival Systems Releases OPRA Market Data Feed Handler
Rival
Rival Systems (Rival), an award-winning provider of trading and risk management software, today announced the release of their Options Price Reporting Authority (OPRA) feed handler within its Rival Trader platform. Rival's OPRA feed handler runs on a 16-core server with Solarflare's ubiquitous and hardened Onload high performance network stack to process the entire feed without dropping any packets.
/goo.gl/qNVswM
Spending on consolidated market data feeds climbs to over $1.4 billion
Finextra
Capital markets firms spent over $1.4 billion on consolidated market data feeds in 2017, up 17% from two years ago. That increase comes despite new competition from direct data feeds and growing concerns about costs associated with consolidated market data. While consolidated feeds are primarily "displayed" via market data terminals, client websites, and order and execution management systems, they also play a role in "non-displayed" machine-driven activities, such as algorithmic trading.
/goo.gl/BuF9a8
| | | | | | Exchanges and Clearing | | | Cboe Global Markets Transfers Common Stock Listing Exclusively to Cboe
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE), one of the world's largest exchange holding companies, successfully completed the transfer of the primary listing of its common stock to Cboe on Monday.
/goo.gl/oKdqNi
****SD: We shared this last week - Monday just made it official.
SGX welcomes Futu Securities as Derivatives Trading Member
SGX
Singapore Exchange (SGX) today welcomed Futu Securities International (Hong Kong) Limited as a Trading Member of its derivatives market.
/goo.gl/Efycyp
Nasdaq Market Regulation announces changes to Post-Trade Reporting Specialist/PMM Opening Quote Performance
Nasdaq
Effective September 17, 2018, Nasdaq Market Regulation staff will only contact PMMs/ Specialists if there is an apparent violation of PHLX Rule 1017(d) and ISE, GEMX, MRX Rules 701(c)(iii). The routine communication of daily opening quotes summary reports will cease. Daily opening quote summary reports will still be available through the PMM/Specialist opening quote SFTP surveillance report located in Report HQ and the Nasdaq SFTP Secure Server output directory.
/goo.gl/BTUzYA
Nasdaq Named to Dow Jones Sustainability North America Index for the Third Consecutive Year
Nasdaq
Nasdaq (Nasdaq: NDAQ) today announced it has been selected as an index component of the Dow Jones Sustainability Index (DJSI) for the third consecutive year. Nasdaq was among seven other diversified financial services companies in the North America index - one of the most prestigious corporate sustainability ranking efforts - and continues its track record as the only stock exchange operator selected for inclusion.
bit.ly/2D6K4ZC
| | | | | | Miscellaneous | | | Wall Street Salaries Just Hit Their Highest in a Decade
Claire Ballentine - Bloomberg (SUBSCRIPTION)
Average pay, including bonuses, rose 13% to $422,500 last year; Industry's pretax profits in first half of 2018 are up 11%
The average Wall Street salary rose 13 percent last year to its highest level since 2008, when Lehman Brothers Holdings Inc. collapsed.
/jlne.ws/2PGlQ9Y
How Star Power Trader Cleared Own Trades and Lost Millions
Lars Paulsson - Bloomberg (SUBSCRIPTION)
The question on everyone's mind in the wake of Einar Aas's default and expulsion from the Nasdaq Inc.'s Nordic power market is -- how was he allowed to act as his own clearer?
The answer: By showing a total net worth of at least 70 million euros ($81 million) based on the latest tax records, an individual can gain membership on the exchange and trade for themselves. The person also would need proven experience buying and selling electricity, derivatives and with the Nordic electricity market, according to a list of criteria obtained by Bloomberg News.
/goo.gl/2Kqc7e
****SD: Again, this was a futures-only story, but relevant from an overall clearing/margin/default perspective. For more see Bloomberg's The Risk of Derivatives Isn't Gone. It's Merely Morphed; The problem child of the 2008 financial crisis now lives in central counterparties.
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Editor
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