Recent content by KrispyKreme50

Are there any websites/books that give an overview of OTC markets? Specifically, I'm looking for information about OTC markets for fixed income, commodities, and derivatives.

My guess is that since the dollar is the reserve currency of the world, Americans relatively have less of a need to know about other currencies. Because of this, it may be that Americans are not familiar with the typical spread on currencies, and the various institutitions can mark up the spread...

I think you're making an apples and oranges comparison here. Are you also buying currency in Europe at an airport? If you're not, the spread at an airport is obviously going to be much higher than if you went to a financial institution. I've never used it myself, but most banks here in the U.S...

Nothing - I was suggesting that singling out credit default swaps is not the correct course of action. Credit default swaps were also not the culprit of the financial crisis. Excessive leverage by various firms made it so that they had no margin for any potential downside. The fact that...

Here's a question - how is a credit default swap any different from a equity put option considering how both are designed to let the buyer hedge downside risk.

I noticed there were three different expirations at the same strike on SPY options. I'm guessing one of them is the quarterly one, but what is the last one?

Ok, let's say that you're right. Here's the other part of my previous post: Since you think that OTC forex brokers can quote anything they want, can you give me an example and evidence of a broker whose quotes are different than those on Globex when accounting for spreads and commissions?

In the example I gave earlier, the only thing a trader would need to do to arbitrage the difference would be to simultaneously buy at 1.2001 on Broker ABC and sell an equivalent amount at 1.2020 on Globex. You really don't care if EUR/USD goes up or down as you're delta neutral. At some point...

That is irrelevant, since the entire concept of arbitrage revolves around the fact that a price discrepancy cannot exist for a long time. For example, let's say Broker ABC has EUR/USD at 1.2000/1.2001 while the CME has EUR/USD at 1.2020/1.2021. If such a gap does exist for an extended period of...

Why does it matter where the quotes come from? If you're worried that your broker has a conflict of interest, why not compare the quotes from your broker to those of the CME group? If there's any measurable difference after accounting for the spread and any commissions, couldn't you arbitrage...

I remember reading somewhere that Bloomberg TV uses Hotspot FXi as the source of their quotes.

The majority of the public in all countries around the world is long equities. Those who oppose it are trying to "protect" their positions against the misguided belief that short sellers cause equities to go down. Here's something to think about - would the same people who oppose short...

When you say regulated, don't you actually mean centrally cleared? That sounds like a great idea in theory, but vanilla options can be traded on a centralized exchange because they are largely standardized contracts. Other derivatives such as swaps or exotic options are much harder to do so...