| January 15, 2019 | | | | | Jeff Bergstrom
Editor
John Lothian News | |
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| | | | Lead Stories | | | OCC selects clearing system from Nasdaq-owned Cinnober
Cinnober
Cinnober, a global provider of exchange and clearing technology solutions acquired by Nasdaq, today announces that OCC will replace its legacy clearing system with a system that employs Cinnober's TRADExpress RealTime Clearing.
/cisn.co/2Da6IOQ
****The buy vs. build question finds an answer. ~SD
Doing a Buffett? Bet on S&P 500 causes flap on options market
Saqib Iqbal Ahmed - Reuters
An anonymous trader caused a stir in the U.S. equity options market on Monday with a massive bet that recalled Warren Buffett's famous wager on global stocks more than a decade ago.
The trader sold 19,000 put options on the S&P 500 Index .SPX obligating him or her to buy the market benchmark at 2,100 on Dec. 18, 2020, data from New York-based options analytics firm Trade alert showed.
/goo.gl/1Yfwmr
****Business Insider picked it up, too - A mystery trader just made a massive bet on the S&P 500 that could lose $558 million if the market turns
Here Are Five Volatility Charts Keeping Wall Street Up at Night
Joanna Ossinger - Bloomberg (SUBSCRIPTION)
VVIX and S&P 500 skew levels diverge from typical behavior; Intraday U.S. stock moves the highest since December 2008
The underbelly of the volatility complex is sending a warning sign to bulls emboldened by the $5 trillion rebound in global stocks. As an eerie calm takes hold of Wall Street's "fear gauge," a slew of metrics in equities and derivatives markets provide clues on the next blow-up.
/goo.gl/QtYPwm
Sterling slips from multi-week high, volatility rises before Brexit vote
Sujata Rao - Reuters
Sterling fell from a two-month high versus the dollar on Tuesday and volatility levels spiked as markets braced for parliament to give the thumbs-down to British Prime Minister Theresa May's Brexit deal later in the day.
/goo.gl/PNgLaJ
****JB: From The Telegraph - 'Don't trade the pound', Wall Street warns clients as markets brace for Brexit volatility
Clients of Tampa firm that lost all of their money in 'catastrophic' trades seek $9.5 million
Susan Taylor Martin - Tampa Bay Times
The first of what could be many lawsuits has been filed in connection with an options trading fiasco in which a Tampa company lost at least $150 million of its clients' money.
/goo.gl/bLoeSr
| | | | | | Exchanges and Clearing | | | OCC Launches Renaissance Initiative to Modernize Technology Infrastructure
OCC
To better serve its stakeholders and the users of the U.S. equity options and futures markets, OCC, the world's largest equity derivatives clearing organization, today announced the Renaissance Initiative, a multi-year investment to comprehensively redevelop and modernize the company's risk management, clearing and data systems.
/goo.gl/s5gKNo
CME Group Achieves Asia Pacific Average Daily Volume of 921,000 Contracts in Q4 2018, Up 45 Percent from Q4 2017
PRNewswire
CME Group, the world's leading and most diverse derivatives marketplace, today announced that it achieved Asia Pacific average daily volume (ADV) of 921,000 contracts in the fourth quarter of 2018, up 45 percent from the corresponding period in 2017. This was driven largely by a strong performance in Equity products, up 201 percent. Interest Rates and Energy products were up 42 percent and 35 percent respectively.
/goo.gl/LPN3Si
A tale of two CCPs; Nasdaq and Ice breaches carry warnings for the market
Louie Woodall - Risk.net
Clearing houses are designed to manage the derivatives market's systemic counterparty risks, by centralising them, collecting margin and applying rules for the orderly sharing of losses. In theory, when a default hits, the pain is kept within the thick walls of the central counterparty, rather than spilling out into the wider markets. Two recent episodes have shed some light on how this works in practice. Last September, Nasdaq Commodities consumed EUR114 million ($131 million) to plug the default of a single trader, Einar Aas. Of that total, EUR7 million was a slice of the CCP's own capital, and the rest came from its default fund - last-ditch reserves contributed by each member.
/goo.gl/MiDruL
Moscow Exchange Launches Options On US 500 Index Futures
Mondovisione
On 16 January 2019, Moscow Exchange will launch trading in options on the US 500 Index futures contract.
The options contracts will expire on the third Thursday of March, June, September and December. The first expiration date will be 21 March 2019.
/goo.gl/8FS7J5
Cboe Global Markets Reports Suspected Theft of Property
Cboe
Cboe Global Markets, Inc. (Cboe: CBOE) reported today an incident involving a suspected theft of property. The incident involved computer servers and networking devices that were never used or not in service on any trading network on a Cboe Global Markets exchange at the time of the suspected theft. Upon learning of the suspected theft, Cboe began an investigation of the matter leading to the termination of an employee.
bit.ly/2QQLmtc
| | | | | | Technology | | | Quest Partners Selects QuantHouse for Global Quantitative Trading Solutions
PRNewswire
Providing a one-stop solution for global automated and systematic trading QuantHouse, the independent global provider of high performance systematic trading solutions including innovative market data services, algo development tools and global network infrastructure, today announced it has been selected by Quest Partners LLC ("Quest") to support the diverse needs of their automated traders.
/goo.gl/gCWk1a
| | | | | | Miscellaneous | | | Waypoint Seeking to Start One of Canada's Largest Hedge Funds
Paula Sambo - Bloomberg (SUBSCRIPTION)
32-year-old former Gluskin Sheff manager will take the helm; Buying volatility is 'extremely cheap' in Canada, he says
A Canadian investment firm that crushed the returns of its peers last year is looking to raise C$500 million ($377 million) for what would be one of the country's largest hedge funds. Waypoint Investment Partners generated a 6.2 percent return in its segregated accounts in 2018 by investing in companies that pay fat dividends, then using those payouts to buy options to bet on market volatility. That compared with a 1.6 percent loss for Bank of Nova Scotia's Canadian Hedge Fund Index in the 12 months through November, and an almost 12 percent decline in the S&P/TSX Composite Index for 2018.
/goo.gl/j5eMrk
Defensive positioning boosts multi-asset managers amid volatile December markets
Jayna Rana - Professional Adviser
Multi-asset managers who bolstered their defensive positions ahead of the market falls in December have trimmed these holdings and "cautiously" reinvested profits in more cyclical areas of the market such as emerging markets and high-yield debt.
/goo.gl/GMc45q
Another Day, Another Bank Miss: JPMorgan Comes Up Shy, Hurt By Trading Revenue
JJ Kinahan - Forbes
Big bank earnings might get overshadowed a bit Tuesday by international events, including a key vote on Brexit and a possible China stimulus plan. Still, earnings remain front and center as a full set of major firms open their books today.
Also front and center is the U.S. government shutdown. Corporate executives are starting to warn that failure to resolve it quickly could weigh on both company results and the overall economy.
bit.ly/2D8KMU4
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