The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX Index and volatility-related articles from print, broadcast, online and social media outlets.     

CBOE Bats New York Office Squares Off
Crop Team Picture (2)
On Thursday, CBOE-Bats’ New York office participated in the Bloomberg Square Mile Relay, where runners took a unique one-mile path around the city’s Financial District.  One of CBOE’s two teams finished in 9th place out of a total of 70 participants, coming in at just under an hour, and landing in the top ten.  Proceeds from the race help fund local revitalization projects that allow participants to volunteer for causes that have a positive impact on the city. 

For results from the race, visit https://squaremilerelay.com/results.  

CBOE’s Continued Innovation  
On Thursday, Catherine Clay, Vice President, Integration Strategy & Operations, presented at the Fintech Exchange 2017 conference in Chicago. Catherine discussed the challenges of enhancing the customer experience through market data while offering solutions to better that experience. 

A video of the presentation can be viewed here.

Face Off: ETFs vs. Underlying Securities
On Monday, Bats announced the planned introduction of the Bats ETF Implied Liquidity Feed, which provides a reference view of ETFs versus their underlying securities.   The feed, which is the first of its kind, measures the implied liquidity of a fund using select data points, covering information applicable to the ETF’s underlying securities.  The feed also includes a proprietary calculation of the fund’s implied liquidity and the aggregate best bid and offer of all displayed orders across the four Bats equity exchanges.

“Bats Bows U.S. ETF Feed” – Joanne Faulkner, Waters Technology
http://bit.ly/2qItgxP

VIX Fix:  Volatility Baked In
A flurry of events have taken place this week including President Trump’s first legislative win with Healthcare legislation, the Fed leaving interest rates unchanged, hiring picking up with the unemployment rate edging down to  4.4%, the lowest in a decade.  With all of this positive news, major market indicators ended the week relatively unchanged, conveying that perhaps these usual “market motivators” have already been priced into markets.  Investor complacency is further seen with the CBOE Volatility Index (VIX), dipping to 9.9 intra-day before closing at 10.11 on Monday, its lowest close since 2014 and ending the week only slightly higher.   This current sentiment has some finance professionals concerned that investors maybe too complacent, but as the President begins to work on his recipe for tax reform, there are plenty of political ingredients that could create a “volatility” casserole.

“The Investor Anxiety that the Market’s ‘Fear Gauge’ is Missing” – Gunjan Banerji, The Wall Street Journal
http://on.wsj.com/2qJuFDC

“Wall Street Fear Gauge VIX Sinks to Decade Low” - Gunjan Banerji, The Wall Street Journal
http://on.wsj.com/2qot7T5

“Political Turmoil is High, but Wall Street’s Fear Gauge is Very Low” - Landon Thomas Jr., New York Times
http://nyti.ms/2pw3COg

“Most VIX Analysis is Outright Nonsense – Steven M. Sears, Barron’s
http://bit.ly/2q7bdEn

“It’s Rare for the VIX to be This Low While Stocks are This Richly Priced” – Chris Dieterich, The Wall Street Journal 
http://on.wsj.com/2qAlNE1

“A More Elegant Measure of Tail Risk” – Matt Moran, Futures Magazine
http://bit.ly/2pOkjFo

“The Mystery of the Stubbornly-Low Volatility Index is Deepening” – Dani Burger, Bloomberg
https://bloom.bg/2pKIOmT

“Wall Street’s ‘Fear Gauge’ is Falling, Bonds and the Stock Market are Soaring – Something’s Gotta Give” – Mark Decambre, Market Watch
http://on.mktw.net/2p9atcQ

“Eerie Calm in Market Volatility Belies Global Policy Uncertainty” – Sam Diedrich, Forbes
http://bit.ly/2qIwalv

“Wall Street’s Fear Gauge Hits Lowest Level Since Before Crisis” – Eric Platt and Robin Wigglesworth, Financial Times
http://on.ft.com/2pByLOH

“Why is Volatility so Low and What Should We Do Now? – Vineer Bhansali, Forbes
http://bit.ly/2oXiK8U