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Well, somebody is left holding the risk, eventually. For this discussion it's not important if that is going to be the insurance company itself or a re-insurance entity.

It's marketing material so it requires some amount of NaCl

Do you have a link to that by chance? It might a handy normalized measure for Naz vol if anything

Isn't this old news, like Dec 17 or something? My understanding is that the whole idea kinda died PS. John Griffin is naive bordering on delusional; he literally thought that he was the first one to know about it and that "a bank asked me for the source data so they can manipulate it better".

The insurance analogy is flawed on multiple levels. First, let's take the index options seller. It's not the risk of a single company that you are selling but the risk of the whole market tanking. An insurance company would never get involved in a business where they have only one client since...

My point is that if you are trying to hedge 2s/5s/10s and that's the only data you are using, you don't need PCA. Instead, you can do something simpler like regression of the body to the two wings ( b ~ x * w1 + y * w2). Where PCA really shines is if you have a lot of data and want to reduce...

Also CIA, NSA etc. True that! PS. I'd venture a guess that expected net worth of any of the jobs above is way better than anything you can get via trading

Why would you say that? A job at a first-tier prop firm it's not any different from a multi-manger fund (I am talking about places like Jump/Wolverine/TowerResearch or DRW). If anything, it's better to have such a prop firm on your CV as opposed to a third-tier hedge fund or some corporate...

You are betting on an event with a rather well defined binary outcome. It's not any different from a horse race, sports game or an instance of natural disaster. No, I am "asserting" that what used to be center and slightly to the right is now left. The window has shifted, peoples views stayed...

Because a binary market where the bid/offer is 50% is silly?

Considering the portion of GDP coming from the financial services, it's unlikely they will kill the golden goose, but less sane things have happened before. It would be a bad thing, at the extreme, the financial activity will move offshore completely, of course. On the other hand, I'd give it...

Well, at least he's guaranteed to be candidate, so that means his win has a good prior. Add to it an incumbency cushion and it's hard to bet against him at this stage

Not sure, I am only familiar with the one we are using in-house which is a registered BD and has a lot of MM-like functionality. There are a several of these services (I am blanking on several other firms that have spoken to us) and at least two others were a registered broker dealer too. It's...

A lot of vol algos like variance strip accumulation, vega targets etc rely on being able to mass quote. Off the top of my head, I think Rival does (and possibly Spider Rock), for example. They are an exchange member but provide agency execution only. Alternatively, you can buy a connected...

I am not too worried, especially considering how flexible derivative payoffs could be and how tricky it is to enforce these types of things (e.g. someone can list contingent premium options that would have zero premium at the trade time, swaps on return levels etc). In the worst case, derivative...

$3.50

Well, let's see - it would still have enough liquidity to facilitate transfer for capital. By the way, based on some of the metrics (e.g. depth of the book etc) market is actually less liquid now than it was 10 years ago when transaction costs were higher. Proposed tax is 10 basis points (at...

For comparison, Katy Perry has a hundred million. Our Fearless Leader has 50 and he's not even pretty. I'd say she's got a long way to go before she becomes a mover and shaker. Actually, I think higher (not super-high, but higher) marginal tax rates are almost a given once the reality sinks in...

Care to float a reference to anything but AOC's proposal? I don't see anything in the news off if I google it. Now, what do you mean by "get ready"? More importantly, why do you believe that it would cause a financial armageddon? I would never advocate it, but the countries that introduced...

To be fair (I actually agree with you on the topic) there are several DMA providers that allow you to trade options as if you were a 2nd tier market maker (reasonable latencies, mass quote ability, participation and vol target algos etc). Most vol shops use these as a part of their execution...