| August 21, 2018 | | | |  | Spencer Doar
Editor
John Lothian News | |
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| | | | Observations & Insight | | | The Longest Market Rally in History? Take a Closer Look
Elena Popina - Bloomberg
You've probably heard: it's the longest bull market ever. You've probably also heard: no it isn't. What's the story?
According to a loose consensus, bull markets are rallies that go beyond 20 percent and are never interrupted by a 20 percent fall. In many corners of Wall Street, that means the S&P 500 rally that began in March 2009 is about to surpass all that went before.
/bloom.bg/2nUYXDV
****SD: As a friend once said, "Agree to disagree? I'm not agreeing to anything." (Also, the S&P just hit another record high.)
| | | | | | Lead Stories | | | CME Group to Streamline Short-Dated Standard and E-mini S&P 500 Options Strike Prices
CME Group
CME Group, the world's leading and most diverse derivatives marketplace, plans to reduce the number of listed strike prices for Standard and E-mini S&P 500 options, pending regulatory review. This change is designed to offer a more relevant mix of strike prices for short-term investors. It will apply to Monday, Wednesday and Friday weekly expirations that are listed after Oct. 1, 2018. This change will exclude Standard and E-mini S&P 500 options that expire on the third Friday of every month, as well as end-of-month and quarterly E-mini S&P 500 options.
bit.ly/2w2RIhQ
****SD: Today's newsletter is heavy on changes at exchanges.
SEC invites comments on Cboe's proposal to add Qualified Contingent Cross with Stock Order functionality
FinanceFeeds
The United States Securities and Exchange Commission (SEC) has published a notice inviting comments on a proposed rule change by Cboe Exchange, Inc. that seeks to add Qualified Contingent Cross (QCC) with Stock Order functionality.
A QCC order is an initiating order to buy (sell) at least 1,000 standard option contracts or 10,000 mini-option contracts that is identified as being part of a qualified contingent trade coupled with a contra-side order or orders totaling an equal number of contracts.
bit.ly/2w1hiUl
SR-CBOE-2018-061- Proposal to amend Rules 5.5A, 5.8, and 24.9.
Cboe
5.5A. Select Provisions of Options Listing Procedures Plan
The exercise price of each option series listed by the Exchange shall be fixed at a
price per share which is reasonably close to the price of the underlying equity security,
Exchange Traded Fund ("ETF" and referred to as a "Unit" in Rule 5.3) or Trust Issued
Receipt ("TIR") at or about the time the Exchange determines to list such series
/goo.gl/RvhksD
****SD: Other than ETP strike listing processes, other rule proposals pertain to LEAP listing procedures and LEAPs on indices.
| | | | | | Exchanges and Clearing | | | BSE plans to launch stock futures, index and options for extended trading hours
Economic Times
BSE is ready with required infrastructure to launch trading in commodities till 11:55 pm from October 1, the exchange's managing director and chief executive officer, Ashish Chauhan told ETNow on Tuesday.
The leading stock exchange is slated to launch trading in the commodity derivatives segment from October 1, and to start with, it will focus on non-agri products.
bit.ly/2nYGRRj
| | | | | | Technology | | | Shenwan Hongyuan Securities chooses Itiviti's technology for ETF options market making; Itiviti services a substantial and diversified client base in China.
Markets Insider
Itiviti, the leading global provider of multi-asset trading technology and financial infrastructure, today announced that Shenwan Hongyuan Securities Co., Limited (Shenwan Hongyuan), one of China's leading securities firms has selected Itiviti's market making solution to support its ETF options market making business. Itiviti currently services 25 buy-side and sell-side clients in mainland China, including large asset managers, securities houses, trading firms and brokerages.
/jlne.ws/2nUYRfv
| | | | | | Moves | | | Roland Schwinn leaves Eurex
Eurex Exchange
Roland Schwinn, regional head for Asia at Eurex, has decided to resign for personal reasons as of 31 August. "I thank Roland very much for his excellent work and commitment to our business", says Eurex CEO Thomas Book, who is also Executive Board Member of Deutsche Boerse Group. "He contributed significantly to Eurex' success and growth in Asia, being a highly valued contact for our clients, regulators and Eurex colleagues all over the world."
bit.ly/2nW8b2I
| | | | | | Regulation & Enforcement | | | SEBI Co-Location Probe: How Much OPG Gained With First Access To NSE's Server
Jayshree P Upadhyay - BloombergQuint
Four years of preferential access to the National Stock Exchange of India Ltd.'s server earned Delhi-based brokerage firm OPG Securities Ltd. Rs 25 crore in profit.
That's what market regulator has alleged in its show-cause notice to OPG Securities, based on an audit by Indian School of Business, Hyderabad. BloombergQuint reviewed a copy of the notice.
bit.ly/2nV5y13
****SD: Check out this number - "OPG was the first to connect 92.83 percent of the time in 2012 in the futures and options segment, and 99.20 percent in 2013."
London's Fight to Remain a Financial Hub After Brexit, Explained
Silla Brush and Alexander Weber - Bloomberg
Can the City of London survive Brexit? Banks are preparing for the worst and are pretty sure they will lose much of the freedom they now enjoy to trade with the European Union. But just how bad Brexit gets for banks hinges on the details that will be worked out in political negotiations, as well as in private talks between firms and supervisors. There are five battlegrounds that could spell the difference between a modest and a major hit.
/bloom.bg/2nWlGzD
****SD: Reuters has Britain can't afford to close door to EU banks after Brexit
| | | | | | Strategy | | | Hedging U.S. Equities with Treasury Options
Erik Norland - CME Group
U.S. equities may be in the late stages of a bull market. In their early stages (1991-1996, 2003-2005 and 2009-2014), earnings and equity prices rise in tandem. In the late stages (1997-2000, 2006-2007 and 2015-), earnings stagnate or decline while prices continue to advance anyway (Figure 1). For the moment, earnings remain relatively robust but are not growing any faster than GDP. At some point, with rising interest rates, a tightening labor market and a trade war, earnings may begin to decline outright as they did during the late 1990s and in 2006 and 2007. A decline in earnings does not necessarily imply an immediate decline in stocks but with interest rates rising and the possibility of a recession around 2020, give or take a year, the risks to long-only equity positions are growing.
bit.ly/2nUKiZp
| | | | | | Miscellaneous | | | Online brokerage stocks sink on JP Morgan's plan to offer free trading
Thomas Franck - CNBC
Online brokerage firms including Charles Schwab, TD Ameritrade and E-Trade sank Tuesday after CNBC reported J.P. Morgan Chase will offer a new digital investment app with free trading.
/cnb.cx/2nXw4a0
****SD: This offering is just stocks for now, but it's clear that Robinhood is putting pressure on the incumbents to continue lowering their fees.
Microsoft claims win over 'Russian political hackers'
BBC
Russian attempts to launch cyber-attacks against US conservative groups have been thwarted, Microsoft says.
The software company said Russian hackers had tried to steal data from political organisations, including the International Republican Institute and the Hudson Institute think tanks.
But they had been thwarted when its security staff had won control of six net domains mimicking their websites.
/bbc.in/2nYTUlL
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