Blog

February 21, 2012

By Suzanne Cosgrove

Industry reaction to the Commodity Futures Trading Commission’s authorization of agricultural swap transactions and subjecting them to the same rules as other swaps transactions conjures up a line of a favorite Rolling Stones song:

"You can't always get what you want but if you try sometimes you just might find you get what you need." (Thanks to Mick Jagger, Keith Richards.)

In backing the final rule, CFTC Chairman Gensler noted the Dodd-Frank Wall Street Reform and Consumer Protection Act would prohibit over-the-...

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August 05, 2011

By Jessica Titlebaum

After evaluating the impact of the 60/40 rule, Contingent Cross Orders and the more established Penny Pilot Program, some traders believe regulators are driving diversity out of the markets. How? Read on to understand how these initiatives have impacted the market making community and what participants can do to protect liquidity.

The 60/40 Rule

There has been much debate in Washington about the 60/40 rule, which applies to all securities including listed futures, forex, equity options and broad-based stock indices.

One market maker...

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July 21, 2011

By Suzanne Cosgrove

An uncertain global economy makes for a challenging trading environment, but that scenario also appears to be fueling additional volume in all options sectors, based on recent fund managers’ comments and study for the TABB Group released in July.

Despite sagging equity volume, options trading is expected to reach a record 4.2 billion contracts in 2011, marking the ninth straight year of volume increases, TABB said.

In an annual report on buy-side trading, the study found traders are turning to technology to support their greater use of listed...

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July 18, 2011

By Jessica Titlebaum

A new regulatory exam is hanging over the heads of market makers, proprietary traders and floor brokers called the Series 56, also known as the Proprietary Trader Exam.

Created by the self-regulatory organizations and a variety of exchanges including the Chicago Board Options Exchange, Nasdaq OMX and the International Securities Exchange (ISE); the exam tests traders’ knowledge of the securities markets, trading and reporting practices, investment strategies and anti-fraud provisions as they pertain to the proprietary trading role.

The...

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