Wall Street Letter VOL. XLVI, NO. 5 - May 2014

THE DEFINITIVE SOUR CE FOR TR ADING NE WS VOL XLVI ISSUE 5 MAY 2014 www.wallstreetletter.com IN THIS ISSUE News People moves04 Analysis Fee char t16 Feature Identity crisis: the global LEI is here18 MORE NEWS INSIDE CBOE bumps up margin for volatility index options The change is a move to set margin requirements at more “appropriate” levels for the contracts TURN TO PAGE 04 Cloud passes bar as a security measure Service providers are seeing buy-side firms adopting cloud infrastructure as a security layer TURN TO PAGE 07 + PLUS Identity crisis: The global LEI is here Kevin Cullen, vice president of SunGard’s XSP, talks LEI issues TURN TO PAGE 18 18 TOP STORY SIFMA to review strike listing policies BY JEANENE TIMBERLAKE The equity market structure committee of the Securities Industry and Financial Markets Association will take up a review of strike listing procedures across the different US options exchanges, according to Ellen Greene, vice president at SIFMA. Her comments were part of a presentation to attendees at the Options Industry Conference in Austin, Texas last week. She noted the issue was recently raised by members who expressed confusion and frustration about the process. “I think as we look at it we recommend this is an area where there could be a uniform rule set created because we think it would really benefit the industry,” she added. Such a change could have a positive impact on corporate actions among other areas, she said, citing the recent stock split that create a class of non-voting shares. “That caused some confusion in the industry,” she added. In a separate panel discussion, Dan Perper, managing director of proprietary trading at Peak6 Investments, told attendees new strikes aren’t always welcome TURN TO because the costs can PAGE outweigh the benefits 03 for market makers. V I S I T WA L L S T R E E T L E T T E R . C O M F O R U P - TO - T H E - M I N U T E I N V E S T M E N T N E W S