​Weekly Bulletin: Feb 9-13

Feb 13, 2015

Some interesting index and ETF trading in the U.S. finished off the week, as investors positioned in a range of strategies, from Brazil to Japan and emerging markets. Activity was also seen on the VIX today, as one investor opened a large put position on the benchmark as the rally in the wider equity markets continued. This week, we talk to the BOX Options exchange on their new realized volatility options and futures contracts; a potential competitor to the VIX, while we also talk to one Hawaiian endowment planning to dip its toes in the options market for the first time this year. In Europe, insurance companies are increasingly accessing BNP Paribas’ Maximum Income Equity Europe Index via swaps, notes, funds or replication strategies in an effort to capture yield in a lower risk format from equities that are embarking on higher dividends, while increased liquidity in the VSTOXX has made tactical volatility trades on the underlying increasingly attractive. In our Asia coverage, the increased pressure on HSCEI vol from structured products is opening up greater opportunities to profit from the discounted level of the index vs. the S&P 500. Also, registration for our inaugural U.S. conference opened up this week. Officials from AIG, Koch Industries, Ontario Teachers, HOOPP, Swiss Alpha, Caxton and Russell Investments are among the speakers at the gathering of equity and vol asset allocators, buysiders and sellsiders. Head to www.eqderivatives.com/events now for details and to secure an attendance spot at the May 20-21 event in Las Vegas.

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