5 Comments

1. 

   justin on July 24, 2018 at 11:31 am

   —ill reply here just in case

   I’m sure your opinion is a fact after reading ClarusFT research article that we are only seeing around 25% via DTCC 75% is “off-SEF” TRF dark pools. Although, even still its almost negligible because it’s aggregate global round off the DTCC has captured 100% of US based OTC volume post dodd-frank and I think that’s good enough reason why we see the magnetism that we do.

   I do definitely see the magnetic/repelling aspect. Can you link me to a daily expiries options market can I see/trade these? And so you say the weeklies are huge but not so sharp -Ok.

   Your right, it may be a 7+ trillion market now https://www.bis.org/statistics/d11_1.pdf but your report on the 19th really stunned me. The orders were all Dollar positive rounding up. When these expire its cash settled obviously because FX underlying and at NYcut boom 20-25 pips EUR and cable in 15 minute span with no news release! I couldn’t believe it.
   There must be something more to it considering how good they are sometimes. I know central banks use barriers, options, swaptions but its all a mystery to me.

   Anyway that’s really my only question is where are these daily options traded the DTCC is referring to? I don’t see them on Think or swim.

   Thanks for your help man and this site it’s been inspiring for me.

2. 

   Benjiman Vaughn on July 24, 2018 at 11:34 am

   I’m sure your opinion is a fact after reading ClarusFT research article that we are only seeing around 25% SEF via DTCC 75% is “off-SEF” so it is TRF dark pools. but even still that is aggregate the DTCC has captured 100% of US based OTC volume post dodd-frank and I think that’s good enough reason why we see the magnetism that we do.

   I do definitely see the magnetic/repelling aspect. Can you link me to a daily expiries options market can I trade these? And so the weeklies are huge but not so sharp -Ok.

   Your right, it may be a 7+ trillion market now https://www.bis.org/statistics/d11_1.pdf but your report on the 19th really stunned me. The orders were all Dollar positive rounding up. When these expire its cash settled obviously because FX underlying and at NYcut boom 20-25 pips EUR and cable in 15 minute span no news release. I couldn’t believe it.
   There must be something more to it considering how good they are sometimes. I know central banks use barriers, options, swaptions.

   Anyway thats really my only question is where are these daily options traded the DTCC is referring to? I don’t see them on Think or swim.

   -Justin

   • 

     K-man on July 24, 2018 at 11:54 am

     Hi Justin,

     If you want to spend an evening where you REALLY don’t have ANYTHING else to do, you can try to browse through the data here https://rtdata.dtcc.com/gtr/ . I ‘m not even thinking to start unravelling that stuff and prefer to grab them from where I’ve got them (paid). I’m a trader, not a statistician who’s work I immensely respect this being said as they provide us with great reports.

     Indeed the weeklies can give you an idea of what’s happening in size that week, but if you don’t have the numbers on the day of the data, the report becomes a lot less relevant.

     • 

       Benjiman Vaughn on July 24, 2018 at 10:40 pm

       haha ya I have nothing else to do, i’m in south carolina if thats a hint. saw that link the other day it’s pretty far above my head and my excel doesnt work.

       Hypothetically if you wanted to trade these daily expiring options that expire at 14:00 what broker/exchange offers daily expiries? I googled everywhere and can’t find them!

       All I found was CME FX options? https://www.cmegroup.com/trading/fx/options.html
       Can we retail trade vanilla fx daily expiries?

       • 

         K-man on July 25, 2018 at 1:54 am

         Hi Benjiman,

         One can trade Forex options with a variety of tenors and maturities, a lot of on-line brokers offer this service, even same day options, but they will be asking for quite a margin as a retail trader. The 14gmt will typically be the expiry time at the end of the life of most options . Better check it out with the main ones or the one you currently use.

         Now to trade the particular expiries you see on the daily reports? I wouldn’t think that’s a trading strategy tbh unless there’s 2 or 3 bio $ at least at a certain level not to far out of the traded price a couple of hours before which may magnet, but even then there’s no guarantee the price will move there. And if you still want to trade a certain option that you would think could attract, you may as well buy/sell spot a few hours before the option expiry time as an idea.