The document discusses the practice of latency arbitrage by high frequency traders (HFTs). It argues that latency arbitrage gives HFTs an unfair advantage through their ability to see market data, such as the National Best Bid and Offer (NBBO), earlier than other market participants due to co-locating their servers. This allows HFTs to identify institutional orders and trade ahead of them for small profits. The document estimates HFTs make $1.5-3 billion annually through predatory practices like latency arbitrage. It raises concerns about the fairness and integrity of markets.
The document provides an overview of Walmart's history, operations, strategies for international expansion, and lessons learned. It discusses Walmart's vision, mission, and goals, as well as its business model, value chain, and key competitive advantages. Regarding internationalization, the document examines Walmart's reasons for expanding abroad, entry decisions, examples of success in Mexico and Canada, and failures in Germany and India. Overall, the document analyzes Walmart's path to becoming a global retailer and identifies factors for successful international transfer of core competencies.
Glimpse into International & Organized Real Estate Industrysumantkachru
The document discusses several real estate trade organizations and private data vendors. It notes that trade organizations in the US sometimes overlap and compete in their roles of promoting the industry, providing education and networking opportunities to members, and conducting research. It also outlines some of the key services private data vendors provide, such as rent, vacancy and operating expense data by property type and location. Overall, the document argues that trade organizations and data vendors help bring transparency to real estate markets through data sharing and research, which benefits industry professionals and the market overall.
Private company marketplaces will provide liquidity for employees and investors while also giving companies access to growth capital. As these marketplaces grow and more companies adopt alternative liquidity programs, the lines will blur between late stage venture funds and hedge funds. Private company secondary markets are becoming more institutionalized as the majority of transactions move to listed marketplaces with regulatory oversight. This will further push out IPO timelines and expand the large, private late stage market.
This document provides data and analysis on the real estate market. It discusses topics such as overly leveraged households in 2000 and 2007, spatial correlation between high loan-to-income ratios and unemployment/home price declines, new construction rates, record low mortgage rates, and the increasing number of households renting. It emphasizes that real estate is local and case-by-case, and that data can help with prospecting, pricing strategies, assessing competition, and making informed decisions. Data sources include the USA Today, NAR, BLS, and more.
This document provides an overview of depository accounts and the account opening process. It discusses the different types of accounts available at a Depository Participant including beneficial owner accounts, house accounts, non-house accounts, clearing member accounts, and intermediary accounts. It then describes the documentation required to open individual and corporate client accounts, including KYC requirements and 'in-person' verification. The key steps to open a beneficiary account and features like zero balance and nomination are also summarized.
The document discusses the practice of latency arbitrage by high frequency traders (HFTs). It argues that latency arbitrage gives HFTs an unfair advantage through their ability to see market data, such as the National Best Bid and Offer (NBBO), earlier than other market participants due to co-locating their servers. This allows HFTs to identify institutional orders and trade ahead of them for small profits. The document estimates HFTs make $1.5-3 billion annually through predatory practices like latency arbitrage. It raises concerns about the fairness and integrity of markets.
The document provides an overview of Walmart's history, operations, strategies for international expansion, and lessons learned. It discusses Walmart's vision, mission, and goals, as well as its business model, value chain, and key competitive advantages. Regarding internationalization, the document examines Walmart's reasons for expanding abroad, entry decisions, examples of success in Mexico and Canada, and failures in Germany and India. Overall, the document analyzes Walmart's path to becoming a global retailer and identifies factors for successful international transfer of core competencies.
Glimpse into International & Organized Real Estate Industrysumantkachru
The document discusses several real estate trade organizations and private data vendors. It notes that trade organizations in the US sometimes overlap and compete in their roles of promoting the industry, providing education and networking opportunities to members, and conducting research. It also outlines some of the key services private data vendors provide, such as rent, vacancy and operating expense data by property type and location. Overall, the document argues that trade organizations and data vendors help bring transparency to real estate markets through data sharing and research, which benefits industry professionals and the market overall.
Private company marketplaces will provide liquidity for employees and investors while also giving companies access to growth capital. As these marketplaces grow and more companies adopt alternative liquidity programs, the lines will blur between late stage venture funds and hedge funds. Private company secondary markets are becoming more institutionalized as the majority of transactions move to listed marketplaces with regulatory oversight. This will further push out IPO timelines and expand the large, private late stage market.
This document provides data and analysis on the real estate market. It discusses topics such as overly leveraged households in 2000 and 2007, spatial correlation between high loan-to-income ratios and unemployment/home price declines, new construction rates, record low mortgage rates, and the increasing number of households renting. It emphasizes that real estate is local and case-by-case, and that data can help with prospecting, pricing strategies, assessing competition, and making informed decisions. Data sources include the USA Today, NAR, BLS, and more.
This document provides an overview of depository accounts and the account opening process. It discusses the different types of accounts available at a Depository Participant including beneficial owner accounts, house accounts, non-house accounts, clearing member accounts, and intermediary accounts. It then describes the documentation required to open individual and corporate client accounts, including KYC requirements and 'in-person' verification. The key steps to open a beneficiary account and features like zero balance and nomination are also summarized.
UK Government Barter Report Summary FindingsDaniel Evans
Ormita Commerce Network Barter Exchange www.ormita.com
Global Barter Exchange Network. Barter Franchises and Licenses Available.
Unsold appointment time, empty hotel rooms, unsold venue passes, unfilled advertising space, rapidly depreciating stock, end-of-line items or oversupplied products all represent lost revenue which otherwise will never be recovered.
These unproductive or unsold assets are known as "dead capital" and there is an estimated 9.3 trillion dollars of it world-wide.
It is Ormita’s mission to transform this otherwise lost profit into new income, investments and other benefits.
Ormita works directly with Government Ministries, State Owned Enterprises, Fortune 500 Companies, Stock Exchange Listed Companies and a handful of carefully selected private corporations in 54 countries.
The Ormita Commerce Network, its licensees, and subsidiaries operate under the master brand name ‘Ormita’ or ‘Ormita Barter’. We are the world’s largest multi-national barter network as measured by international transaction volume, country footprint and service offerings, and believed to be the second largest barter network in the world after the WIR Bank, (formerly known as the Swiss Economic Circle / Wirtschaftsring-Genossenschaft or WIR).
We provide regular barter related information and offerings to more than 210,000 business and public sector clients through personnel operating in Australia, Canada, China, Egypt, Germany, Greece, Hong Kong, India, Indonesia, Iran, Italy, Macau, Mexico, New Zealand, Pakistan, Poland, South Africa, Sweden, Turkey, United Kingdom, United States of America and Zambia. For more information, please visit ormita.com.
Barter Exchange Franchises www.ormita.com Barter Exchange Software www.ormita.com Barter Franchises www.ormita.com Barter Exchange www.ormita.com
Records and information management presentation 2012LRNcorporation
This document discusses challenges related to records management and social media for businesses. It provides guidance on developing governance and policy approaches to address these challenges. Key points include establishing roles and responsibilities, focusing social media policies on principles rather than trying to address all instances, and ensuring proper handling and retention of business records created through mobile and social media.
The Paradox of the Empowered Consumer - Tim Suther, Forrester Customer Experi...Acxiom Corporation
"The Paradox of the Empowered Consumer" - Forrester Customer Experience Forum, June 2012
Tim Suther, Chief Marketing & Strategy Officer at Acxiom
Richard Char, Global Head of Information Services at Citi
Today’s well-informed, resourceful consumers are demanding an omnichannel retail environment that anticipates their individual wants and needs. In order to offer innovative and personalized products and services to these shoppers, retail organizations face an imperative to use customer data and insights more effectively. These smarter retailers are delivering a smarter shopping experience, creating more effective merchandising and supply networks and reducing operational costs.
In this upcoming webinar, Greg Girard, Program Director, Merchandise Strategies, from IDC Retail Insights will share insights and recommendations for merchants based on the research firm’s top 10 predictions for 2012, and where the industry stands halfway through the year in terms of those trends.
The document discusses different categories and approaches to e-commerce, including business-to-business, business-to-consumer, peer-to-peer, and consumer-to-business models. It also examines classic strategic planning approaches as well as new views like the sense and respond paradigm and strategy as rules. The chapter seeks to provide a framework for understanding e-commerce and the roles and challenges facing senior e-commerce managers.
enableIT is a global company that provides expertise in capital markets. It has customers including sell-side institutions like investment banks and brokers, buy-side institutions like investment managers and hedge funds, and solution providers. enableIT focuses on capital market solutions and information risk management across equities, commodities, derivatives, fixed income, forex, and prime brokerage. It helps customers with electronic trading, risk management, data management, and governance, regulatory, compliance, and controls. enableIT works on both a time and expense model and a project basis with fixed bids or capped time and expenses.
Odex bplan december_2011_v9_orange_shortRaymond May
ODEX is a new swap execution facility (SEF) seeking to capitalize on opportunities created by new regulations mandating trading of derivatives on SEFs. The document outlines:
1) How current derivatives markets are dealer-centric while new rules aim to make them more transparent and fair.
2) ODEX's strategy is to launch a SEF providing transparent pricing and a customer-focused experience to gain market share as trading moves to SEFs.
3) Key dates show rules being finalized in 2012 and mandated trading beginning later that year, representing a $4 billion revenue opportunity for compliant platforms like ODEX.
Op Risk High Frequency Trading June 14 Finaltestytre
Presentation on High Frequency Trading risks delivered during OpRisk conference in London in June 2012. Content includes an overview of key risks affecting high frequency trading.
1. Failure to meet regulatory and exchange requirements.
2. Removal of human decision making once the algorithms are finished.
3. Extreme market behaviour: Flash Crash (2010).
4. Theft or loss of Intellectual Property.
5. Errors or problems suffered by clients using Direct Market Access and Algo/HFT.
6. Business impact of latency (system errors may increase delays).
7. Limited security controls at the infrastructure level.
8. Failure of hedges. 9. Incorrect/untested strategies.
David Ramirez
IT Audit Director
Bridging the regulator regulated divide - the minefield and goldmineSimon Aderinlola
In the MobileMoney space of fledgling markets, the regulator-licensee relationship is oft mismanaged...inadvertently. This presentation recommends simple but profound steps for both parties to beneficially engage, rather than lock horns from a distance.
The RIA Channel: A Roadmap for Driving GrowthBroadridge
The document discusses strategies for ETF and mutual fund providers to target sales to registered investment advisors (RIAs). It finds that RIAs now sell more funds than major wirehouses. However, RIAs are more numerous and diverse than wirehouses, making them harder to reach with traditional strategies. The document recommends segmenting the RIA market by assets under management. It finds that RIAs managing $100 million to $1 billion in assets are the best target, as they have the largest assets and use funds for over 50% of assets. Finally, it suggests providers develop plans to provide RIAs access to funds, analyze RIA preferences, and align sales resources to the RIA channel.
The document provides an overview of capital markets and the various participants and intermediaries that operate within them, including governments, financial institutions, and other organizations. It discusses the roles of these participants, as well as financial innovation, regulation, and the different types of financial institutions like banks, insurance companies, asset managers, and exchanges. It also covers topics like orders, trading, costs, and various stock market indicators.
Deal Umpire is an online marketplace that connects small businesses with daily deal sites. It aims to empower small businesses by providing transparency into deal site offerings and allowing businesses to select the best deal site partner through an auction process. This addresses challenges in the daily deals market like a lack of differentiation among deal sites and barriers to merchants profiting from daily deals. Deal Umpire generates revenue by charging deal sites a fee if selected as the winner of a merchant's auction. It aims to become the leading platform in the daily deals space by expanding nationally and promoting deal site consolidation.
Comaparative study of indian stock market with otherMisbah Choudhary
This document compares the Indian stock market to other Asian markets. It finds that the Indian market has the highest compound annual growth rate of returns over 5 years and 1 year compared to markets in Hong Kong, Indonesia, Malaysia, Japan and Korea. The Indian market also shows weak correlation to these other markets, indicating it provides diversification benefits for international investors. Overall, the study finds the Indian stock market delivers strong returns with low correlation to other Asian markets, making it an attractive investment option for the Asia Pacific region.
This document provides an overview of the securities market and defines key terms related to equity, derivatives, and other financial instruments. It discusses the functions of securities markets, key participants, and regulators. It also defines common terms like equity, derivatives, futures, options, and others. Finally, it provides brief descriptions of depositories and their role in the securities market.
Stockr is a social media platform for investors that aims to connect people to share tradable information about public companies and the stock market. Over 90 million people seek stock information online each month but current online tools are limited. Stockr allows users to follow other investors, see news and data on companies, and engage in discussions. It plans to monetize through targeted advertising, paid subscriptions from professional investors, and working with companies on investor relations. The startup has raised $1.5 million so far and is seeking $2-4 million more to expand its team and product offerings like mobile apps and new social features.
1. Scaale is a venture resource group that applies global context to companies through sales, capital, and talent. It has over 200 professionals with 30 years of experience helping companies with IPOs, M&A, fundraising, and international growth.
2. The document discusses listing a company on the Spanish MAB (Alternative Investment Market) as an efficient way to gain visibility, funding, and an exit compared to other options like venture capital or traditional banking. Some benefits highlighted are lower costs, the potential for growth in Spain and Latin America, and a proven track record.
3. Managing a company listed on the MAB from the US is possible
Wintermute is introducing itself and its services over the next few weeks. The introduction will cover Defi and governance with Wintermute, careers, and ventures. Wintermute offers market making, OTC trading, and investing in blockchain projects. It has offices in Singapore and London with over 90 employees across finance, strategy, legal and other areas. Wintermute also engages in on-chain trading, liquidity provision, and DAO governance to support objective, long-term decision making. People can learn more by visiting Wintermute's website or following their social media.
The document provides an introduction to The McLean Group, a middle-market investment bank. It discusses the services they provide, including mergers and acquisitions, corporate finance, business valuation, market intelligence, and exit planning. It also summarizes their presence across North America, with 30 offices located in various cities. The objectives and an overview of the presentation are then outlined, covering topics such as defining the middle market, different types of buyers, business valuation approaches, and the M&A process.
2011 NAR Strategic Planning Idea ExchangeChris Nichols
The document summarizes discussions from a strategic planning meeting focused on identifying game-changing ideas that could impact the real estate industry. Key points discussed include:
- Exchanging ideas on the future course of the industry and cultivating game-changing ideas beyond the usual.
- Scenarios developed around how changing demographics, organizational structure, technology, and value propositions could impact the industry. Scenarios included the industry embracing or resisting younger generations.
- Challenges facing the industry related to technology include increasing speed/power of technology, rising consumer expectations, and competition from those who can now compete as their own business.
ZKsync airdrop of 3.6 billion ZK tokens is scheduled by ZKsync for next week.pdfSOFTTECHHUB
The world of blockchain and decentralized technologies is about to witness a groundbreaking event. ZKsync, the pioneering Ethereum Layer 2 network, has announced the highly anticipated airdrop of its native token, ZK. This move marks a significant milestone in the protocol's journey, empowering the community to take the reins and shape the future of this revolutionary ecosystem.
UK Government Barter Report Summary FindingsDaniel Evans
Ormita Commerce Network Barter Exchange www.ormita.com
Global Barter Exchange Network. Barter Franchises and Licenses Available.
Unsold appointment time, empty hotel rooms, unsold venue passes, unfilled advertising space, rapidly depreciating stock, end-of-line items or oversupplied products all represent lost revenue which otherwise will never be recovered.
These unproductive or unsold assets are known as "dead capital" and there is an estimated 9.3 trillion dollars of it world-wide.
It is Ormita’s mission to transform this otherwise lost profit into new income, investments and other benefits.
Ormita works directly with Government Ministries, State Owned Enterprises, Fortune 500 Companies, Stock Exchange Listed Companies and a handful of carefully selected private corporations in 54 countries.
The Ormita Commerce Network, its licensees, and subsidiaries operate under the master brand name ‘Ormita’ or ‘Ormita Barter’. We are the world’s largest multi-national barter network as measured by international transaction volume, country footprint and service offerings, and believed to be the second largest barter network in the world after the WIR Bank, (formerly known as the Swiss Economic Circle / Wirtschaftsring-Genossenschaft or WIR).
We provide regular barter related information and offerings to more than 210,000 business and public sector clients through personnel operating in Australia, Canada, China, Egypt, Germany, Greece, Hong Kong, India, Indonesia, Iran, Italy, Macau, Mexico, New Zealand, Pakistan, Poland, South Africa, Sweden, Turkey, United Kingdom, United States of America and Zambia. For more information, please visit ormita.com.
Barter Exchange Franchises www.ormita.com Barter Exchange Software www.ormita.com Barter Franchises www.ormita.com Barter Exchange www.ormita.com
Records and information management presentation 2012LRNcorporation
This document discusses challenges related to records management and social media for businesses. It provides guidance on developing governance and policy approaches to address these challenges. Key points include establishing roles and responsibilities, focusing social media policies on principles rather than trying to address all instances, and ensuring proper handling and retention of business records created through mobile and social media.
The Paradox of the Empowered Consumer - Tim Suther, Forrester Customer Experi...Acxiom Corporation
"The Paradox of the Empowered Consumer" - Forrester Customer Experience Forum, June 2012
Tim Suther, Chief Marketing & Strategy Officer at Acxiom
Richard Char, Global Head of Information Services at Citi
Today’s well-informed, resourceful consumers are demanding an omnichannel retail environment that anticipates their individual wants and needs. In order to offer innovative and personalized products and services to these shoppers, retail organizations face an imperative to use customer data and insights more effectively. These smarter retailers are delivering a smarter shopping experience, creating more effective merchandising and supply networks and reducing operational costs.
In this upcoming webinar, Greg Girard, Program Director, Merchandise Strategies, from IDC Retail Insights will share insights and recommendations for merchants based on the research firm’s top 10 predictions for 2012, and where the industry stands halfway through the year in terms of those trends.
The document discusses different categories and approaches to e-commerce, including business-to-business, business-to-consumer, peer-to-peer, and consumer-to-business models. It also examines classic strategic planning approaches as well as new views like the sense and respond paradigm and strategy as rules. The chapter seeks to provide a framework for understanding e-commerce and the roles and challenges facing senior e-commerce managers.
enableIT is a global company that provides expertise in capital markets. It has customers including sell-side institutions like investment banks and brokers, buy-side institutions like investment managers and hedge funds, and solution providers. enableIT focuses on capital market solutions and information risk management across equities, commodities, derivatives, fixed income, forex, and prime brokerage. It helps customers with electronic trading, risk management, data management, and governance, regulatory, compliance, and controls. enableIT works on both a time and expense model and a project basis with fixed bids or capped time and expenses.
Odex bplan december_2011_v9_orange_shortRaymond May
ODEX is a new swap execution facility (SEF) seeking to capitalize on opportunities created by new regulations mandating trading of derivatives on SEFs. The document outlines:
1) How current derivatives markets are dealer-centric while new rules aim to make them more transparent and fair.
2) ODEX's strategy is to launch a SEF providing transparent pricing and a customer-focused experience to gain market share as trading moves to SEFs.
3) Key dates show rules being finalized in 2012 and mandated trading beginning later that year, representing a $4 billion revenue opportunity for compliant platforms like ODEX.
Op Risk High Frequency Trading June 14 Finaltestytre
Presentation on High Frequency Trading risks delivered during OpRisk conference in London in June 2012. Content includes an overview of key risks affecting high frequency trading.
1. Failure to meet regulatory and exchange requirements.
2. Removal of human decision making once the algorithms are finished.
3. Extreme market behaviour: Flash Crash (2010).
4. Theft or loss of Intellectual Property.
5. Errors or problems suffered by clients using Direct Market Access and Algo/HFT.
6. Business impact of latency (system errors may increase delays).
7. Limited security controls at the infrastructure level.
8. Failure of hedges. 9. Incorrect/untested strategies.
David Ramirez
IT Audit Director
Bridging the regulator regulated divide - the minefield and goldmineSimon Aderinlola
In the MobileMoney space of fledgling markets, the regulator-licensee relationship is oft mismanaged...inadvertently. This presentation recommends simple but profound steps for both parties to beneficially engage, rather than lock horns from a distance.
The RIA Channel: A Roadmap for Driving GrowthBroadridge
The document discusses strategies for ETF and mutual fund providers to target sales to registered investment advisors (RIAs). It finds that RIAs now sell more funds than major wirehouses. However, RIAs are more numerous and diverse than wirehouses, making them harder to reach with traditional strategies. The document recommends segmenting the RIA market by assets under management. It finds that RIAs managing $100 million to $1 billion in assets are the best target, as they have the largest assets and use funds for over 50% of assets. Finally, it suggests providers develop plans to provide RIAs access to funds, analyze RIA preferences, and align sales resources to the RIA channel.
The document provides an overview of capital markets and the various participants and intermediaries that operate within them, including governments, financial institutions, and other organizations. It discusses the roles of these participants, as well as financial innovation, regulation, and the different types of financial institutions like banks, insurance companies, asset managers, and exchanges. It also covers topics like orders, trading, costs, and various stock market indicators.
Deal Umpire is an online marketplace that connects small businesses with daily deal sites. It aims to empower small businesses by providing transparency into deal site offerings and allowing businesses to select the best deal site partner through an auction process. This addresses challenges in the daily deals market like a lack of differentiation among deal sites and barriers to merchants profiting from daily deals. Deal Umpire generates revenue by charging deal sites a fee if selected as the winner of a merchant's auction. It aims to become the leading platform in the daily deals space by expanding nationally and promoting deal site consolidation.
Comaparative study of indian stock market with otherMisbah Choudhary
This document compares the Indian stock market to other Asian markets. It finds that the Indian market has the highest compound annual growth rate of returns over 5 years and 1 year compared to markets in Hong Kong, Indonesia, Malaysia, Japan and Korea. The Indian market also shows weak correlation to these other markets, indicating it provides diversification benefits for international investors. Overall, the study finds the Indian stock market delivers strong returns with low correlation to other Asian markets, making it an attractive investment option for the Asia Pacific region.
This document provides an overview of the securities market and defines key terms related to equity, derivatives, and other financial instruments. It discusses the functions of securities markets, key participants, and regulators. It also defines common terms like equity, derivatives, futures, options, and others. Finally, it provides brief descriptions of depositories and their role in the securities market.
Stockr is a social media platform for investors that aims to connect people to share tradable information about public companies and the stock market. Over 90 million people seek stock information online each month but current online tools are limited. Stockr allows users to follow other investors, see news and data on companies, and engage in discussions. It plans to monetize through targeted advertising, paid subscriptions from professional investors, and working with companies on investor relations. The startup has raised $1.5 million so far and is seeking $2-4 million more to expand its team and product offerings like mobile apps and new social features.
1. Scaale is a venture resource group that applies global context to companies through sales, capital, and talent. It has over 200 professionals with 30 years of experience helping companies with IPOs, M&A, fundraising, and international growth.
2. The document discusses listing a company on the Spanish MAB (Alternative Investment Market) as an efficient way to gain visibility, funding, and an exit compared to other options like venture capital or traditional banking. Some benefits highlighted are lower costs, the potential for growth in Spain and Latin America, and a proven track record.
3. Managing a company listed on the MAB from the US is possible
Wintermute is introducing itself and its services over the next few weeks. The introduction will cover Defi and governance with Wintermute, careers, and ventures. Wintermute offers market making, OTC trading, and investing in blockchain projects. It has offices in Singapore and London with over 90 employees across finance, strategy, legal and other areas. Wintermute also engages in on-chain trading, liquidity provision, and DAO governance to support objective, long-term decision making. People can learn more by visiting Wintermute's website or following their social media.
The document provides an introduction to The McLean Group, a middle-market investment bank. It discusses the services they provide, including mergers and acquisitions, corporate finance, business valuation, market intelligence, and exit planning. It also summarizes their presence across North America, with 30 offices located in various cities. The objectives and an overview of the presentation are then outlined, covering topics such as defining the middle market, different types of buyers, business valuation approaches, and the M&A process.
2011 NAR Strategic Planning Idea ExchangeChris Nichols
The document summarizes discussions from a strategic planning meeting focused on identifying game-changing ideas that could impact the real estate industry. Key points discussed include:
- Exchanging ideas on the future course of the industry and cultivating game-changing ideas beyond the usual.
- Scenarios developed around how changing demographics, organizational structure, technology, and value propositions could impact the industry. Scenarios included the industry embracing or resisting younger generations.
- Challenges facing the industry related to technology include increasing speed/power of technology, rising consumer expectations, and competition from those who can now compete as their own business.
ZKsync airdrop of 3.6 billion ZK tokens is scheduled by ZKsync for next week.pdfSOFTTECHHUB
The world of blockchain and decentralized technologies is about to witness a groundbreaking event. ZKsync, the pioneering Ethereum Layer 2 network, has announced the highly anticipated airdrop of its native token, ZK. This move marks a significant milestone in the protocol's journey, empowering the community to take the reins and shape the future of this revolutionary ecosystem.
UnityNet World Environment Day Abraham Project 2024 Press ReleaseLHelferty
June 12, 2024 UnityNet International (#UNI) World Environment Day Abraham Project 2024 Press Release from Markham / Mississauga, Ontario in the, Greater Tkaronto Bioregion, Canada in the North American Great Lakes Watersheds of North America (Turtle Island).
Methanex is the world's largest producer and supplier of methanol. We create value through our leadership in the global production, marketing and delivery of methanol to customers. View our latest Investor Presentation for more details.
2. The Mystery
Are equity markets what
they seem…?
Or something else
altogether?
NIRI Tri-State Mar 2012 By ModernNetworks IR LLC. Not for distribution. 2
3. Markets Seem Vibrant
• VIX Volatility Index:
– Mar 16, 2012: 15
• Historical average: c. 20
• High near 80 in 2008, 45 in Aug 2011
• Conclusion: LOW volatility
• Nasdaq: Over 3,000
• NYSE: Above 13,000
• S&P 500: Over 1,400
NIRI Tri-State Mar 2012 By ModernNetworks IR LLC. Not for distribution. 3
4. But Surface Deep Only?
How Many Stocks are in the Wilshire 5000?
What’s the Average Trade Size?
How Much Volume is “Rational”?
NIRI Tri-State Mar 2012 By ModernNetworks IR LLC. Not for distribution. 4
6. Fewer Companies…
National Market System stocks. Source: Wilshire Associates index composition.
NIRI Tri-State Mar 2012 By ModernNetworks IR LLC. Not for distribution. 6
7. But Growing Volume…
Source: SIFMA. US Key Statistics, published February 2012. Includes volume for
NYSE, Arca, Nasdaq, BATS, Direct Edge. Excludes Pink Sheet OTC market.
NIRI Tri-State Mar 2012 By ModernNetworks IR LLC. Not for distribution. 7
8. And 10-Yr Flat Returns
• Dow Jones Industrial Index – returns inconsistent since the
number of public companies began falling.
NIRI Tri-State Mar 2012 By ModernNetworks IR LLC. Not for distribution. 8
10. Via the National
Market System
“Our national market system, as it has
evolved since 1975, has sought the benefits
of both market centralization -- deep, liquid
markets -- and competition.”
Source: SEC Final Rule – Regulation ATS, 1998
• Result: Legislation transformed formerly
private markets, with private prices and
private data, into a semi-nationalized
system.
NIRI Tri-State Mar 2012 By ModernNetworks IR LLC. Not for distribution. 10
11. Key Rules
• 1975 – Congress Mandated Natl Market System
• 1997 – Reg ATS/Order Handling Rules - PRICE
• 2000 – Decimalization – SPEED & PRICE
• 2002 – Spitzer settlement – TRADING
• 2007 – Reg NMS (523 pps) – PRICE, SPEED, TRADING
• Rule 605 - Best Execution Standards – UNIFORMITY
• Rule 606 - Order-Routing - AGGREGATION
RESULT: Fragmented, high-speed, quantitative market
NIRI Tri-State Mar 2012 By ModernNetworks IR LLC. Not for distribution. 11
12. A Structure Upended
Buyers
• 1792-1997 • Today
Rebate Traders
Specialists, Black boxes
Buyers Market Makers Liquidity providers
Arbitragers
Resting orders
OMS/EMS
Proprietary traders
Linkage/Interdealers
Prime brokerage
Risk management
Sellers
Sellers
NIRI Tri-State Mar 2012 By ModernNetworks IR LLC. Not for distribution. 12
13. Exchange Evolution
• Previously Non-profit; now For-Profit
• Adapting to Rules
• Profits driven primarily by data/transactions
– „11 NYSE Gross Rev: Listings $446m; Other: $4.1b
– „11 Nasdaq Gross Rev: Listings $369m; Other $3.1b
• Data revenue
– Proprietary products and feeds
– Share of revenue from consolidated tape:
• Since Reg NMS 25% share of trading, 25% share of value traded,
and 50% share of quoting
• Transactional revenue
– Trading in derivatives, bonds, equities
– DERIVATIVES is the most profitable business
• Incentivized arbitrage, HFT, data=profits
NIRI Tri-State Mar 2012 By ModernNetworks IR LLC. Not for distribution. 13
14. Maker/Taker Model
• “Making” and “Taking” shares
• “Liquidity Provider” = HFT= “Making”
• Buyers of shares=“Taking”
• Liquidity: Exchanges PAY $0.29/100sh
• Taking: Exchanges CHARGE $0.30/100
• GOAL: Low spreads, price stability
• REAL GOAL: PREVIOUS SLIDE
– To sustain market share
– Encourage trading in many assets, securities
– For DATA/TRANSACTIONAL REVENUE
NIRI Tri-State Mar 2012 By ModernNetworks IR LLC. Not for distribution. 14
15. Volume vs. Liquidity
Volume: How much of something trades
Liquidity: How much of something exists
EXAMPLE:
If I give you an apple, and you give it to
another person, who passes it to yet one
more, who gives it to a fourth person:
Volume=4, Liquidity=1
NIRI Tri-State Mar 2012 By ModernNetworks IR LLC. Not for distribution. 15
16. Algorithms
• If this flock of birds
were trades: half
would be trying to
hide their
intentions, and the
other half, trying
to divine what‟s
hidden.
• Algorithms
fragment
institutional orders
into a million
pieces – while
other algorithms
scans millions of
orders for patterns.
NIRI Tri-State Mar 2012 By ModernNetworks IR LLC. Not for distribution. 16
17. Patterns in Trading
Strategic selling Statistical Arbitrage
Nanex “Crop Circle” showing
patterns in high-frequency
trading over fractions of
seconds:
ModernIR data showing
patterns over days: 1. Strategic
selling (tiptoeing an elephant
across a putting green); 2.
Statistical Arbitrage
By ModernNetworks IR LLC. Not for
NIRI Tri-State Mar 2012 distribution. 17
18. Cisco HFT Router
Who can compete with this? Only other algos.
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20. How to Buy/Hold?
• 2000-2012: How do you buy and hold? Better to speculate
• EXCHANGES encourage arbitrage, transient trading
• The RULE STRUCTURE best suits fast-moving money
• RESULT: Buying and holding assets to leverage for trading
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21. Order Routing
• The Market becomes a giant funnel
• What starts as “investment” can
transform into algorithmic trading
• INCENTIVES change how orders are
routed:
– “Liquidity Providers” aggregate executions to
earn money from orders at exchanges
– A few large brokers dominate
• Results:
– More uniformity
– Fewer vibrant, competing
investment theses
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22. Macro Factors
• Global=“Everywhere”
• Statistical= “we’re using math”
• Arbitrage=“to profit on spreads” Global
• Dollar, currencies
– Fed policy moves markets Statistical
– Other central banks too
– Forex: $4 trillion day, US alone
– Constant fluctuations
• Floating currencies, HFT, Arbitrage
regulated trades and prices,
global multi-asset class trading…
• =ARBITRAGE
“Fluctuations in the value of currency are always injurious, and to reduce these
fluctuations to the lowest possible point will always be a leading purpose in wise
legislation.” – Abraham Lincoln – Dec 1862 State of the Union Address
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23. WHAT THIS MEANS
TO PUBLIC COMPANIES
By ModernNetworks IR LLC. Not for
NIRI Tri-State Mar 2012 distribution. 23
24. Three Truths
• Your stock price, volume, reflect a mix of
behaviors with differing purposes and
time horizons – not just “investment” but
also crowd behavior, speculative trading
• More than HALF your volume, regardless
of market cap, is INTERMEDIATION
• Trading is math, and math can be
measured
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25. Three Behaviors
• Market Share of behavior, not WHO, is key to understanding price
• Three major forms: Rational, Speculative, Programs (the crowd)
By ModernNetworks IR LLC. Not for
NIRI Tri-State Mar 2012 distribution. 25
26. Owners vs. Traders
• OWNERSHIP, TRADING, are not the same.
• Looking to changes in ownership – which
are important – for why your price
changes does not reflect market structure
• Akin to tracking the owners of apartment
buildings to know who’s renting units.
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27. Trading Behaviors
• A different approach: Program sentiment
5-day Ave 42.93% Prev 5-day 44.35% Diff: -3.2%
• INSTEAD OF: negative
– “We heard that…”
Rational sentiment
– OR “Fidelity sold 500,000 shares”
5-day Ave 13.56% Prev 5-day 10.84% Diff: 25.1%
• WATCH FOR: positive
– What behaviors are up, down Speculative sentiment
– To what degree they set price 5-day Ave 32.62% Prev 5-day 33.58% Diff: -2.9%
negative
• AT RIGHT:
– Programs are DOWN Directional signal
– Rational investment is UP Ave Midpoint Price
– Speculation is DOWN 5-day $8.26 Prev 5-day $8.05 Diff: 2.6%
– By MARKET SHARE, these translate into positive
likely forward price performance: Market Share - past five days:
– POSITIVE
Program -1.38%
Rational 3.41%
Speculative -0.94%
Sum 1.09%
Plus Price 3.69%
positive 3.7%
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28. Learn New Terms
• Describe market behavior differently:
– Program trading (correlated “crowd behavior”)
– Speculative Trading (trading volatility)
– Rational investment activity (fundamentals)
– Statistical Arbitrage (trading gaps)
– Institutional Re-risking (balancing assets, hedges)
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29. Timing Matters
OPTIONS EXPIRATIONS –
VIX/RVX, stocks, indices,
currencies…
Most trading speculative
or crowd behavior,
hedges common
Money moves to address
RISK, find SHORT-TERM
GAPS
You must beware of this
and factor it into your
thinking – see ModernIR
calendar for more
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30. Go on the Offensive
• Educate yourself on market structure
• Rational investing a lesser force; GOOD
NEWS! Small actions, big results.
• Read Market Rules – Speak up
– http://www.sec.gov/rules/sro.shtml
• Ask for Analytics – Ask your exchange to
provide better information on trading
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33. SEC Budget
SEC Budget relies
on HFT
Source: SEC 2012 Budget Request: http://www.sec.gov/about/secfy12congbudgjust.pdf
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34. Dodd-Frank
Trading costs will increase:
Dodd-Frank routes regulatory charges for IPOs,
secondaries, follow-ons, repurchases and proxy
solicitations to the US Treasury. Since 1934, these
fees have “offset” regulatory costs:
H. R. 4173—577
(1) SECTION 6(b) OF THE SECURITIES ACT OF 1933.—Section
6(b) of the Securities Act of 1933 (15 U.S.C. 77f(b)) is amended—
(A) by striking ‘‘offsetting’’ each place that term
appears and inserting ‘‘fee’’;
‘‘(5) FEE COLLECTIONS.—Fees collected pursuant to this subsection
for fiscal year 2012 and each fiscal year thereafter
shall be deposited and credited as general revenue of the
Treasury and shall not be available for obligation.
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35. Crystal Ball
• Exchange Competition
– BATS, Direct Edge, Chicago/National -LISTINGS
• Market Risk: UNIFORMITY
• Money Will Continue to Seek Alternatives
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Editor's Notes
Answers: Dec 31, 2011: 3,675 companies in the Wilshire 5000Average trade size – Modern IR client base - 225 shares/tradeRational volume estimate: 13% (Jan 2012)
What does this slide add?
BECAUSE OF RULES (see end of preceding page)The rules of the equity markets have changed drastically over the past ten years: -“Order Handling Rules” – Required exchanges to display quotes from ECNs (electronic comms networks), putting focus on price, speed -Decimalization – 100 price points per dollar, rather than 16 -Spitzer Settlement – Deemphasized research; shifted focus to trading with algorithms -Regulation National Market System - All trades at the best bid or offer -- total focus on speed, price. Fragmented data, fragmented markets. -Rule 605 – Best Execution standards mean brokers must meet certain price and speed requirements in matching trades, or they may be subject to fines. Result: brokers at risk route the orders to others capable of complying.-Rule 606 – How orders are routed must then be reported, so that the results of Rule 605 can be tracked .
-For 200 years, capital markets quite simple. There were buyers and sellers, matched by a handful of intermediaries. The Buttonwood Agreement 1792 – 2 sentences – set a commission and said the brokers would give each other preference. From it came the NYSE. -Capital markets more complex after 1930s regulation but trading still fairly simple. Most buyers and sellers were investing. A few were speculating. -In the past decade, explosion of rules, transformed the intermediary role. -Result a structure the exact OPPOSITE of what we had before, with an enormous number of intermediaries. -Understanding that buying and selling for the sake of owning things has greatly diminished, and buying and selling to intermediate transactions has exploded , is crucial to grasping why your price often behaves unexpectedly and inexplicably. -Intermediaries set prices way more frequently than do buyers or sellers.
The NASD spun off the Nasdaq via private placements in 2001 but there was no IPO until 2005. NYSE followed a year later. All around the globe, exchanges are publicly traded entities now – Singapore, London, Germany, Toronto, on and on. Exchanges are beholden to divergent audiences: -Broker-dealers who match up buyers, sellers-Customers who want to trade-Public companies that want to raise capital BUT growth comes from the customers who want to trade. Notice that the broker-dealers have become customers who trade too. But public companies are the smallest – about 10% of gross exchange revenue. The rest? Transactions and data, plus IT services. Rules serve trading customers: markets are fragmented to minimize the power of intermediaries – and intermediating has shifted from the book of business, to every single trade. With fragmented markets, fragmented data, low cost trades, and intermediation occurring with every one, automation is essential. Markets become about trading things only – price, speed. MERGERS: BROKERS have taken back the market. So for Exchanges to succeed they must duplicate the data-and-transactions model across more liquidity and asset classes.
Cisco Router for HFT. Description below courtesy of Securities Technology Monitor. To resolve all questions about how stocks trade now, study this for a few seconds. We’ll have a short quiz at the end. OPTIONAL descriptionAutomated trade: <100 milliseconds: DATA from exchanges, vendors like Thomson Reuters, Bloomberg To SELLSIDE, which repackages for BUYSIDE which applies to STRATEGY ENGINES, trading algorithms, pricing engines, pre-trade risk management applications and real-time portfolio modeling and a TRADE ENGINE triggers a trade according to presets which re-checks a risk application which sends to an Order Management System that uses a SMART ORDER ROUTER to send the trade to an EXECUTION VENUE based on speed, liquidity, competition for shares, and other factors and the order is submitted in Financial Information exchange (FIX) format, and if not canceled after a speed test the order sends to the venue’s MATCHING ENGINE and is MATCHED with the opposite side and confirmed by return message and clearing begins.
It’s more and more difficult to distinguish individual stories when markets are highly correlated to macro events