Regulators Probe Options Market’s Major Clearinghouse

It underscores how concerns about insider trading have become an issue on Capitol Hill. We will continue to cooperate in any way we can," Thomas Conheeney, SAC's president, said Friday on behalf of the firm. For example, customers are shifting to futures contracts, he said. International Business Machines Corp. International stock quotes are delayed as per exchange requirements. Money flow gives a snapshot of relative buying and selling pressure in a stock.

Liquidity, the crucial ability to do trades without significantly moving prices, has deteriorated, according to interviews with market participants and data reviewed by The Wall Street Journal. Options on key indexes, exchange-traded funds and high-volume stocks dominate trading.

Officials Widen Investigation of Hedge-Fund Firm to Include Derivatives

Grassley said on Sunday he "is pursuing the next steps in his investigation" but declined to comment further. Grassley last month asked Finra, the primary independent regulator policing financial firms in the U. Finra handed over details of roughly 20 instances when it considered the timing or other circumstances of SAC trading suspicious enough for Finra to refer the matters to the SEC's enforcement staff, according to the people familiar with the matter.

It isn't clear whether the SAC referrals led to any action by the SEC, or, if the regulator did investigate the trades, whether the probes are continuing. Expanding the investigation to the options market would move it into a financial arena widely used to bet on deals and companies. Stock options give their holders the right to buy or sell shares of an underlying stock at a set price within a specific time frame.

The equity-options market has boomed in the U. Banks and other Wall Street brokers frequently advise clients such as hedge funds on options-trading strategies, including options they could buy or sell when company mergers and other corporate events are anticipated. Options can help traders amplify a bet, and therefore boost their potential profit, frequently while taking less risk than they would by owning shares outright.

What's more, stock-market investors will frequently take cues from the options market, factoring positive or negative bets by options traders into their own buying and selling, sending ripple effects across markets that can affect a broader range of investors. The Senate probe comes amid an unprecedented succession of insider-trading investigations, guilty pleas and prosecutions, including this month's conviction of former hedge-fund manager Raj Rajaratnam.

It underscores how concerns about insider trading have become an issue on Capitol Hill. Write to Jenny Strasburg at jenny. Dow Jones, a News Corp company. News Corp is a network of leading companies in the worlds of diversified media, news, education, and information services. Cboe Global Markets, Inc. It operates through the following business segments: The Options segment includes options exchange International stock quotes are delayed as per exchange requirements.

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Earnings Per Share TTM A company's net income for the trailing twelve month period expressed as a dollar amount per fully diluted shares outstanding.

Market Capitalization Reflects the total market value of a company. Market Cap is calculated by multiplying the number of shares outstanding by the stock's price. For companies with multiple common share classes, market capitalization includes both classes.

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October, 2018

Many Wall Street traders have lamented the steady demise of floor trading. But now that one exchange is trying to launch the first U.S. open-outcry trading pit in decades, it isn’t exactly being welcomed. Box Options Exchange LLC hopes to open a new floor for about 40 human traders at the Chicago Board of Trade Building. More individual investors are trading options on exchange-traded funds. The trend worries some financial experts, who say inexperienced traders may not fully understand the risks. Interest in ETF. Following a leap in stock market gyrations so far this year, the biggest U.S. banks generated more revenue from stock trading than in any first quarter since the financial crisis, according to a Wall Street Journal analysis of bank regulatory filings.