​Daily Wrap – Autos RV; Goldman Revenues; RVX Futures; New Tail Hedging Relationship

In today’s coverage, we speak with Assenagon’s Daniel Danon and Tobias Knecht on why owning volatility in automobile single stocks in Europe versus the Eurostoxx 50 or DAX index is pricing attractively given the dependence of these names on the economy in China. Elsewhere, increased activity in Europe and Asia contributed to net revenues in equity derivatives and cash products at Goldman Sachs being significantly higher in Q2, 2015 compared to Q2, 2014. Also, Barry Feldman, senior research analyst at FTSE-Russell, presents a case study as to where RVX futures–based hedges may provide results superior to those of VIX-based hedges when the risk to be hedged is specific to small cap stocks. In our market roundup, we cover a new relationship between Universa Investments and Towers Watson, where Towers Watson will reserve sufficient capacity in Universa’s tail risk strategy to hedge equity investments on behalf of their endowment and foundation clients. Also, CBOE Holdings has promoted Andy Lowenthal from vice president to senior vice president, business development as the firm aims to better leverage its business development efforts across its expanding line of futures and options products and services.