(Bloomberg) — The U.S. Securities and Exchange Commission is examining whether high-speed traders helped destabilize equity markets during the May 6 crash by repeatedly placing and canceling orders in an attempt to manipulate share prices, a person with direct knowledge of the inquiry said.The strategy is among several practices being investigated by regulators, said the person, who declined to be identified because the probe isn’t public.
Posts Tagged ‘Electronic Trading’
SEC Said to Probe Role of Canceled Orders in May 6 Flash Crash
September 3rd, 2010 
Before You Invest 
Posted in Finance Fraud 
Tags: Andrei Kirilenko, Cftc, Circuit Breakers, Commodity Futures Trading, Commodity Futures Trading Commission, Data Feeds, Data Provider, Electronic Trading, Financial Economist, Futures Trading Commission, Group Llc, Lee Co, Market Structure, Mary Schapiro, Securities And Exchange Commission, Share Prices, Stock Volatility, True Market, Wall Street Journal, Winnetka Illinois 
Comments OffCBOE’s drop in profit disappoints investors
August 5th, 2010 Before You Invest (Reuters) — CBOE Holdings Inc., which runs the Chicago Board Options Exchange, reported lower-than-expected earnings on Thursday, with quarterly profit falling 11 percent.CBOE’s Chief Financial Officer Alan Dean called the results — the company’s first since its $339 million initial public offering in June — “solid,” and pledged to keep a tight control over expenses in future quarters.But the company projected core expenses to rise 3 percent to 5 percent annually, a factor that could weigh on the stock price today, said Ed Ditmire, a New York-based analyst for Macquarie Securities.”The cost growth guidance, while low by industry standards, is above our projections,” Ditmire told investors in a note on Thursday.
Posted in Finance Fraud Tags: Alan Dean, Cboe, Chicago Board Options, Chicago Board Options Exchange, Chief Financial Officer, Contract Options, Ditmire, Electronic Exchange, Electronic Trading, High Frequency, Initial Public Offering, Macquarie Securities, Net Income, Options Exchanges, Organic Growth, Quarterly Profit, Reuters, Stock Price, Tight Control, Volume Trends Comments OffEris Exchange about to launch
July 22nd, 2010 Before You Invest (Crain’s) — A new Chicago exchange made by five local trading firms will start to trade interest rate-swap futures Monday, with clearing provided by CME Group Inc.Eris Exchange is being launched by DRW Holdings LLC, Getco LLC, Infinium Capital Management LLC, Chicago Trading Co. and Nico Holdings LLC, which all have also invested in the new entity.
Posted in Finance Fraud Tags: Barack Obama, Capital Management Llc, Chicago Exchange, Chicago Trading, Crain, Derivative Trading, Drw Holdings, Electronic Trading, Exchange Operator, Futures Contracts, Interest Rate Futures, Interest Rate Swap, Local Trading, Management Track, Mr Brady, New Chicago, Public Domain, Risk Management, Trading Co, Trading Platform Comments OffCitadel loses top exec Mohan to CME
May 25th, 2010 Before You Invest (Crain’s) — Citadel Investment Group LLC lost another top executive with the departure of Craig Mohan, who will join CME Group Inc. as a managing director.CME said in a news release today that Mr. Mohan, 41, will develop and manage the company’s co-location and hosting service, to be launched in early 2012.Co-location sites allow traders to place computer equipment closer to financial exchanges to reduce the time it takes to make a trade.Mr.
Posted in Finance Fraud Tags: Citadel Investment Group, Citadel Investment Group Llc, Co Location, Commodity Futures Trading, Commodity Futures Trading Commission, Crain, Electronic Trading, Financial Exchanges, Futures Trading Commission, Global Infrastructure, Hedge Fund Company, Infrastructure Unit, Investment Banking Services, Location Site, Location Sites, Mohan, Rohit, Seven Months, Top Executive, Top Executives Comments OffMorgan Stanley launches MS PORT trading algorithm
March 12th, 2010 Before You Invest Morgan Stanley has announced the launch of new electronic trading platform MS PORT. According to the investment bank, MS PORT utilises more than 70 risk metrics to enable investors to implement trade instructions across multiple portfolios more effectively.By comparing market impact, volatility and assets, traders should be able to reduce costs, achieve better execution and manage risk more efficiently when investing, the bank clarified.Andrew Silverman, global co-head of Morgan Stanley Electronic Trading, said: “The addition of MS PORT to our constantly evolving suite of algorithms underscores our commitment to providing our clients with a complete set of trading tools and solutions to manage their global execution needs.”In a statement the bank added that MS PORT also integrates with MS Analytics, allowing investors to follow each step of a trade.The new electronic trading product is now available in the US and Europe and will be introduced to Asia-Pacific markets later on in the year.Morgan Stanley recently announced the appointment of Jeffrey L Shames and Edmond N Moriaty III to its Investment Management and Global Research teams.The former was employed as chairman and chief executive officer of MFS Investment Management while the latter previously worked as senior vice-president at Merrill Lynch & Co.
Posted in Finance Fraud Tags: Asia Pacific Markets, Chief Executive Officer, Edmond, Electronic Trading, Global Co, Global Execution, Global Research, Investment Bank, Launch, Market Impact, Merrill Lynch, Mfs Investment Management, Morgan Stanley, Moriaty, Risk Metrics, Senior Vice President, Shames, Trading Platform, Trading Tools, Volatility Comments OffStock Index Rollover Begins Today
March 11th, 2010 Before You Invest Thursday, March 11, 2010 is the start of stock index futures roll-over at both CME Group and ICE Futures U.S.Rollover is when a new contract month becomes the dominant contract in terms of new volume, for both pit (open outcry) and electronic trading sessions. For stock index futures, rollover officially starts one week before the expiration of the nearest contract.
Posted in Finance Fraud Tags: Contracts, Day Traders, Electronic Platforms, Electronic Trading, Globex, Index Futures Trading, March 11, New Contract, Open Outcry, Pace, Position Traders, Stock Futures, Stock Index Futures, Stock Index Futures Trading, Stock Trading, Trading Futures, Trading Sessions, Trading Stock Comments OffUBS to launch new electronic trading facility in Europe
March 10th, 2010 Before You Invest Financial services provider UBS is to launch a “dark pool” Multilateral Trading Facility (MTF) to allow cross trading in Europe.According to the firm, UBS MTF will work alongside the existing UBS Price Improvement Network (UBS PIN) by offering a wider array of liquidity to its members.The MTF is still awaiting regulatory approval and will be based on a Central Counterparty (CCP) model, which will allow investors to mitigate certain amounts of risk.Dr Robert Barnes, head of Market Structures at UBS Investment Bank, said: “As we developed the architecture and interactivity model for UBS MTF, we were committed to greater simplicity, lower transaction costs and reduced market impact.“As a global bank and one of the top equities trading firms, we aim to leverage our broad and deep market experience to help us to bring innovation, quality liquidity and a unique value proposition to our clients.”All completed transactions will be reported in real-time to Markit Boat following the trade.Previously, global investment bank Nomura announced the launch of NX MTF in December 2009, the first broker-owned dark pool MTF of its kind.
Posted in Finance Fraud Tags: Central Counterparty, Cross Trading, Dark Pool, Dr Robert Barnes, Electronic Trading, Financial Services Provider, Global Bank, Global Investment Bank, Improvement Network, Launch, Market Experience, Market Impact, Market Structures, Multilateral Trading, Nomura, Price Improvement, Regulatory Approval, Ubs Bank, Ubs Investment Bank, Unique Value Proposition Comments OffBook : Too Good to Be True: The Rise and Fall of Bernie Madoff
December 16th, 2009 Before You Invest When Bernie Madoff’s $65 billion Ponzi scheme unraveled at the end of 2008, many in the industry wondered how he did it, how otherwise savvy investors were lured into it, and how regulators failed to stop it. These are the questions that Erin Arvedlund attempts to answer in her book “Too Excellent to Be Right: The Rise and Fall of Bernie Madoff.”The book explores Madoff’s background, interviewing classmates from his days at Far Rockaway High School in New York, who noted that Bernie was an average guy who they never dreamed would ascend to titan of Wall Street and chairman of the Nasdaq.
Posted in Finance Fraud Tags: Advisory Business, Bernie Madoff, Broker Dealer, Brokerage Firm, Chicago Board Options, Chicago Board Options Exchange, Chicago Board Options Exchange (CBOE), Classmates, Dealer Business, Electronic Stock Market, Electronic Trading, Fund Of Hedge Funds, Konig, Membership Deal, Money Deposit, Money Manager, Nasdaq Stock, Ponzi Scheme, S 65, Savvy Investors No Comments »Orange Business Services – Trading Solutions launches Mobile Call Recording Platform in Asia Pacific
October 2nd, 2009 Before You Invest Orange Business Services – Trading Solutions, the leader in convergent voice and electronic trading infrastructure and services for the trading communities, today announced the release of its innovative mobile call recording platform, which enables secure trading via mobile phones.Henri Vautheny, Vice PresidentThe call recording solution is designed with compliance requirements in the forefront and is both secure and cost effective.
Posted in Finance Fraud Tags: Alliance Member, Anomalies, Asia Pacific, Business Continuity, Call Recording, Compliance Requirements, Disaster Recovery Plan, Disruption, Electronic Trading, Forefront, Fund Managers, Landlines, Legal Professionals, Pandemic, Private Bankers, Risk Alert, Secure Trading, Trading Solutions, Wealth Managers, Working Practices No Comments »Little-known Getco is key player in high-frequency trading
August 28th, 2009 Before You Invest Getco LLC might not be a household name, but the private Chicago-based company with fewer than 250 employees is one of the largest players in high-frequency trading, often accounting for as much as 20% of daily trading volume of many stocks. Getco, which stands for Global Electronic Trading Co., has become one of the five largest traders when measured by volume in stocks and other electronically traded instruments.
Posted in Finance Fraud Tags: Accounting, Electronic Trading, Getco, High Frequency, Household Name, Llc, Money, Rosenblatt Securities, Schack, Stocks, Trading Co, U S Stock Market, Vice President, Wsj No Comments »
