THE DEFINITIVE SOUR CE FOR TR ADING NE WS
VOL XLV ISSUE 18 6 - 12 JUNE 2013 www.wallstreetletter.com
IN THIS ISSUE News People moves 04 Focus Fee chart 10
MORE NEWS INSIDE
TOP STORY
Dodd-Frank, EMIR may force big banks to break up
Proposed financial reforms as part of the Dodd-Frank Act and EMIR may force large multi-nationals to break up TURN TO PAGE 05
Managers choose options strategies for risk
BY JEANENE TIMBERLAKE
Analyst: Gensler won on swaps RFQ rules
The rules approved by the CFTC pared the RFQ process to require just three quotes instead of the original five proposed TURN TO PAGE 07
Xenomorph adds cloud offering, will open more offices
The increased costs resulting from higher margin requirements are leaving firms with less capital TURN TO PAGE 08
Options strategies are becoming a larger part of the conversation for portfolio managers at wealth advisory firms as they look to manage risk for their clients more effectively, according to comments from executives at an Options Thought Leadership Forum hosted by NYSE Amex Options and NYSE Arca Options last week. The trend is due in part to market conditions pushing managers to look for alternative ways to increase yield, they said. Deborah Briskin, senior vice president at UBS, said her team started looking at using options
two years ago as a way to reduce risk, and increase yield. “We decided to start a covered call writing program for our clients, and we have since actively been in the program for certain clients as a tactical component of their portfolio,” she said. The strategy is to take dividend paying stocks within each portfolio and write covered calls on those stocks, she said. “Very often, we will buy back the option and make a profit on it and rewrite them again,” she added, noting the portfolio managers monitor TURN option ex-dividend TO PAGE dates, expirations and other details daily. 03
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