| March 28, 2016 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | Appeals Court Upholds Determination that CBOE Patents are Invalid
Press Release - International Securities Exchange, LLC
The United States Court of Appeals for the Federal Circuit (Appeals Court) on Friday, March 25, 2016, affirmed the decision of the Patent Trial and Appeal Board (PTAB) of the U.S. Patent and Trademark Office (USPTO) that invalidated three CBOE patents (US Patent Nos. 7,356,498, 7,980,457 and 8,266,044). The Appeals Court agreed with ISE and found that all three patents are invalid.
bit.ly/1RKAc8R
Fear Amid the Market Rally: Investors Raise Bets on Volatility
Ben Eisen and Saumya Vaishampayan - WSJ
Some investors are so worried stocks will tumble that they are willing to lose money to protect themselves.
Investors poured a record sum over the past month into exchange-traded funds whose value increases along with Wall Street's so-called fear gauge, the CBOE Volatility Index. Many of those wagers are being made via leveraged products that effectively double the stakesÂa strategy that analysts say could protect against a large decline in U.S. stock indexes but is more likely a recipe for losing money.
bit.ly/1RKAZGL
The Fear Gauge: Investors Should Avoid VIX ETFs
Chris Dieterich - Barron's
U.S. stocks' roller-coaster ride in 2016 has piqued interest in products that provide some insurance against sharp downswings. In particular, investors are flocking to an alphabet soup of exchange-traded funds that profit from eruptions in the CBOE Volatility Index, or VIX, also known as the market's "fear gauge." These ETFs offer the chance to catch lightning in a bottle but, like all hedging tools, are virtually guaranteed to lose money longer term.
bit.ly/1pFBchB
Weekly Market Outlook - At A Crucial Juncture
Kevin Davitt - CBOE Options Hub
After five straight weeks of gains the market finally buckled. It wasn't a big pullback last week - only 0.6% - but all big trends start out with that first small step. We have to at least acknowledge the possibility that last week's weakness may be the beginning of something bigger.
And that possibility isn't just the result of one losing week. The S&P 500 (SPX) (SPY) bumped into a major resistance line and if the bears were/are going to make a stand anywhere, it's where the index peaked last week.
bit.ly/1RKO8j7
Hottest Emerging Market for Algo Trades Wants to Cool Down
Santanu Chakraborty - Bloomberg
India's flash boys are discovering that even the biggest emerging market for computerized trades has its limits.
In just five years, high-speed and algorithmic traders have gone from bit players to a dominant force on Indian exchanges, enabled by a technological arms race between the nation's top exchanges that cut transaction times to tiny fractions of a second. Now, as some of the country's largest brokerages call for tighter regulation, those same bourses are starting to explore whether speed traders should be reined in.
bloom.bg/1pEtunT
The Option Queen Newsletter
Jeanette Young and Jordan Young - The Options Queen
The thrust of the excuses for the market's current behavior is that it is all the fault of crude oil!!!!! Nice try, but what the pundits are forgetting is that the strong US Dollar puts significant pressure on the price of crude oil. Crude oil does not trade in isolation and affects other industries including the transportation index. What is forgotten is that for every reaction there are multiple other reactions.
bit.ly/1B5Z2pS
| | | | | | Exchanges | | | CME's Gill, an immigrant from Singapore, leads global growth strategy - In Other News
Lynne Marek - Crain's Chicago Business
The man driving CME Group's growth strategy was an unlikely leader when he arrived at the Chicago company in 1988, but today he's perhaps just what it needs.
Born in Malaysia to parents of Indian descent, Phupinder Gill moved to the U.S. for college and, despite a stutter that developed in childhood, climbed an old-world Chicago hierarchy to become CME's CEO in 2012.
bit.ly/1RKBoZR
The IEX Stock Exchange Application: What's Next?
Bill Harts - Traders News
I suspect I'm not the only industry participant who's suffering from IEX fatigue. After months of debate and media attention, I'll bet there are many who let out a collective groan when they read that the Securities Exchange Commission is asking for more time to review IEX's application to become a stock exchange. But even with more months of analysis and explanation in front of us, it's clear that the SEC has made the right move.
bit.ly/1RKIRrI
Bats to Provide Market and Trade Data to Money.Net
Press Release - Bats
Bats Global Markets (Bats), a leading global operator of exchanges and services for financial markets, today announced that it is now providing real-time stock quote and trade information via the Bats One Feed to Money.Net, the fast-growing financial terminal.
bit.ly/1RKJK3z
| | | | | | Regulation & Enforcement | | | The Next Perfect Banking Storm
Christopher Langner - Bloomberg
Those looking for when the next financial crisis might be should set a reminder for Jan. 1, 2018.
That's when a host of new rules are scheduled to come into force that are likely to further constrain lending ability and prompt banks to only advance money to the best borrowers, which could accelerate bankruptcies worldwide. As with any financial regulation, however, the effects will start to be felt sooner than the implementation date.
bloom.bg/1RKDg4L
| | | | | | Strategy | | | A Better Stock-Market Volatility Gauge Sends a Warning
Steven M. Sears - Barron's
Volatility is back, but too few investors even know it.
Most are too focused on the CBOE Volatility Index's extraordinary collapse in recent weeks to 15 from about 28. When the VIX is low, as it is now, it tends to be interpreted as a green light to buy stocks...or a sign of investor complacency.
bit.ly/22UzMyh
| | | | | | Education | | | Trading Lessons: Bull or Bear? These Labels Are Useless
Bob Lang - CBOE Options Hub
Some trading lessons are invaluable. One of the best is to be agnostic and without a bullish or bearish bias.
As the markets move up and down we often find ourselves positioned in one camp or the other. Naturally, on the sidelines technically means we are neutral, but often it is 'bullish with a bias to wait'. I'm not into labels. Why? Because it puts us all in a frame of mind where we have bias, and in this market if you are biased then you lose your quickness and flexibility.
bit.ly/1RKOiHe
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