Salient to Investors: Coalition Ltd say investment banks are cutting jobs in equities faster than any other division. Tabb Group says trades that require human involvement cost 2.05 cents per share versus 1.08 cent for those done by computer. Mike Di Iorio at Barclays Capital says the way the business has been run will
READ MORE... →Salient to Investors: Goldman Sachs’ Multi-Strategy Investing team’s survival shows how Goldman Sachs has worked around regulations curbing proprietary bets at banks. Matthew Richardson at NYU said the law does not bar longer-term wagers so leaves room for other risky investments. Richardson said from a systemic-risk perspective, it’s longer-term holdings which are
READ MORE... →Salient to Investors: Trading in US equity markets is spread across 13 stock exchanges and 50 dark pools. A third of US volume occurs away from exchanges. Justin Schack at Rosenblatt Securities said that from 2008 through 2010, big banks expanded their dark pools by using them as the first destination to
READ MORE... →Salient to Investors: David Goel at Matrix Capital Mgmt said DeMark’s algorithms are much more predictive than any other system. Tom DeMark’s says fundamentals do matter, and markets are governed by waves that crest and fall based on Fibonacci numbers and the closely related golden mean, or golden ratio 1.618. DeMark can’t explain why his
READ MORE... →Salient to Investors: Investors will soon be more concerned about missing out on the rising markets than preparing for the next leg of the bear market. Gold will make a serious run at $2,000. Short-selling is a great strategy but risks mandatory buy-ins. Read the full article at http://seekingalpha.com/article/890301-how-to-prepare-for-the-bear?source=intbrokers_regular
READ MORE... →Salient to Investors: Germany advanced legislation that would force high-speed trading firms to register with the government and limit their ability to rapidly place and cancel orders. The European Commission agreed on even broader rules for all of the EU if governments also give their approval. Celent estimates high-speed trading accounts for 30
READ MORE... →Salient to Investors: Scheme aimed at distorting stock prices by rapidly canceling orders – placing orders with no intention of having it executed. The trades primarily involved traders in China. Read the full article at http://www.bloomberg.com/news/2012-09-25/sec-says-new-york-broker-allowed-high-speed-stock-manipulation.html
READ MORE... →Salient to Investors: High-frequency trading accounts for more than half of equity trading volume. Read the full article at http://www.bloomberg.com/news/2012-06-22/wash-trading-by-high-frequency-firms-said-to-face-u-s-scrutiny.html
READ MORE... →Salient to Investors: Derivatives trading and poker share risk management and making decisions when uncertain. The most important skill is to analysing the situation. Realize the difference between pressure and stress. Watch the video at http://www.bloomberg.com/video/94782773-the-psychology-of-risk-trading-and-poker.html
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