(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.
Posts Tagged ‘High Frequency’
CBOE’s drop in profit disappoints investors
August 5th, 2010 
Before You Invest 
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 OffHigh-Frequency Trading Faces EU Market Abuse Probe
May 1st, 2010 Before You Invest (Bloomberg) — High-frequency trading faces a European Union clampdown, as regulators investigate whether traders could use the practice to manipulate financial markets.The European Commission, the EU’s executive arm, said it’s summoning hedge funds and banks “in the coming months” for fact-finding talks on the practice, as it considers stricter rules on market abuse due before the end of the year.“We’re looking into high-frequency trading as part of the review of the Market Abuse Directive,” Chantal Hughes, a spokeswoman for Financial Services Commissioner Michel Barnier, said in an e-mail.
Posted in Finance Fraud Tags: Clampdown, Clifford Chance Llp, Commissioner Michel Barnier, Current Market, E Mail, Executive Arm, Finance Ministers, Gleeson, Hedge Funds, High Frequency, Individual Investors, Market Abuse, Members Of The European Parliament, Michel Barnier, Milliseconds, Powerful Computers, Securities And Exchange Commission, Securities Professionals, Technological Developments, Which Came Into Force Comments OffSEC May Put Codes on Biggest Traders, Cap Option Fees
April 14th, 2010 Before You Invest (Bloomberg) — The Securities and Exchange Commission backed proposals today that would assign identification codes to monitor the largest stock traders and impose a limit on fees for options transactions.Commissioners voted 5-0 in favor of a program that would require firms that buy and sell at least 2 million shares a day to report their identity to regulators.
Posted in Finance Fraud Tags: Abusive Practices, Broker Dealers, Brokerages, Dynamic Transformation, Hedge Funds, High Frequency, Kaufman, Lawmakers, Mary Schapiro, Milliseconds, Proposals, Rapid Technological Advances, Regulators, Securities And Exchange, Securities And Exchange Commission, Securities Markets, Stock Traders, Term Investors, Trading Strategies, Volatility Comments OffSEC to propose disclosure of high-frequency traders’ activities
April 8th, 2010 Before You Invest The Securities and Exchange Commission (SEC) is proposing that the identity of broker-dealers is revealed when high-frequency trades are made, insiders have said.Two unnamed sources told the Financial Times that the SEC is concerned about the current way in which high-frequency trading, which seeks out pricing and other discrepancies in markets through the use of computer algorithms, takes place.At the moment, the identity of broker-dealers carrying out such business is not shown up in audited trails – making it a hard sector to regulate.The new proposals would aim to improve this situation as part of wider reforms including the implementation of risk management controls.John Nester, SEC spokesman, did not confirm the precise details of the regulators plans but said: “Staff expect to make a recommendation in the very near future.”Last month, the new Financial Rules Bill proposed that all large hedge funds – those with assets of more than $100 million – must be registered with the SEC.
Posted in Finance Fraud Tags: 100 Million, Assets, Broker Dealers, Computer Algorithms, Disclosure, Discrepancies, Financial Times, Hedge Funds, High Frequency, Insiders, Nester, Precise Details, Proposals, Regulators, Risk Management, Securities And Exchange, Securities And Exchange Commission, Spokesman, Trades, Unnamed Sources Comments OffSEC moves toward tracking high-frequency firms’ trades
April 7th, 2010 Before You Invest The Securities and Exchange Commission is conducting a cost-benefit analysis of tracking transactions of high-frequency trading firms. The agency is expected to go forward with the effort, sources said. The thought is to give each firm a unique identifier that would allow the SEC to monitor traders not registered as a broker-dealer or a market maker.
Posted in Finance Fraud Tags: Authorities, Broker Dealer, Computer Code, Cost Benefit Analysis, Dark Pools, Electronic Platforms, High Frequency, High Speed, Lawyer, Naked, Sec, Securities And Exchange, Securities And Exchange Commission, Stock, Stocks, Trades, Transparency, Wsj Comments OffDeath Threats Against High-Frequency Trading Advocate Fade
February 20th, 2010 Before You Invest Staunch proponent of high frequency trading Irene Aldridge says the e-mail death threats she received last August and September following a controversial TV interview have subsided.“That was after my first interview with Saluzzi,” she said matter-of-factly in a phone interview late Thursday. Joseph Saluzzi , co-founder of broker Themis Trading, LLC, is a harsh critique of high frequency trading, arguing it rigs the markets.The CNBC Power Lunch shouting match to which she refers took place on July 24, 2009 when she debated the merits of high frequency trading with Saluzzi.“The retail and institutional investor is currently at disadvantage to this class of investor which represents 70 per cent of the volume.
Posted in Finance Fraud Tags: Aldridge, August And September, Cnbc, Controversial Tv, Death Threats, E Mail, Harsh Critique, High Frequency, Institutional Investor, Market Participants, Market Structure, Matter Of Factly, Passionate Defense, Power Lunch, Saluzzi, Shouting Match, Sophisticated Algorithms, Speed Transactions, Themis Trading, Tyler Durden Comments OffCME gets bigger investment from Brazil exchange firm
February 12th, 2010 Before You Invest (Reuters) — BM&FBovespa, the world’s fourth-largest exchange operator by market value, has agreed to raise its stake in CME Group Inc. for $620 million and develop new technologies, in its largest bet to date on high frequency trading.As part of the deal, BM&FBovespa will increase its stake in Chicago-based CME to 5 percent from 1.8 percent, the Brazilian company said Friday.The companies also agreed to develop new technologies for high-speed trading platforms for stocks, derivatives, currencies, government and corporate bonds, where investors will be able to buy and sell securities in less than 1 millisecond.BM&FBovespa said it will invest $175 million over 10 years in the new trading platform.CME and BM&FBovespa also formed a “strategic partnership,” valid for 15 years, to jointly look for partnerships and investment opportunities in other exchange operators around the world.
Posted in Finance Fraud Tags: 10 Years, Amp, Bet, Bm, Brazilian Company, Corporate Bonds, Currencies, Derivatives, Exchange Operator, High Frequency, High Speed, Investment Opportunities, Millisecond, Partnerships, Reuters, Stake, Stocks, Strategic Partnership, Trading Platform, Trading Platforms Comments OffSEC Vote Shows Scope of High-Frequency Trading Rules
January 13th, 2010 Before You Invest High-frequency traders, whose lightning-quick stock and options tactics have been criticized by senators, are about to learn how far U.S. regulators may go to rein them in.The Securities and Exchange Commission is poised to question brokerage firms, traders and exchanges to weigh in on the practice, which describes a range of strategies that depend on high-speed executions, usually less than a millisecond.SEC commissioners vote today on publishing a so-called concept release on high-frequency trading, dark pools and the structure of markets.
Posted in Finance Fraud Tags: Brokerage Firms, Dark Pools, Delaware Democrat, Executions, Financial Services Consultant, Getting Away With Something, Goodwin Procter Llp, Group Llc, High Frequency, Individual Investors, Kaufman, Lawmakers, Liquidity, Millisecond, Proponents, Securities And Exchange Commission, Stock Volume, Tabb Group, Trading Accounts, Volume Questions No Comments »High-frequency firms organizing lobby group
December 22nd, 2009 Before You Invest NEW YORK (Reuters) – About 25 high-frequency trading firms have discussed forming a lobbying group within the Futures Industry Association as they go to deal with growing scrutiny in Washington, the association told Reuters.The firms have held a series of meetings in Chicago over the last two months, spurred by the prospect of a new transaction tax, commodity market position limits, and the possibility of a crackdown on high-frequency trading, the FIA said.The group has a draft mission statement but no name, it said.
Posted in Finance Fraud Tags: Collateral Damage, Commodity Market, Donald Wilson, Draft Mission Statement, Fia, Futures Industry Association, Ghco, Hehmeyer, High Frequency, Last Two Months, Lobby Group, Lobbying Group, Market Manipulation, Market Position, Position Limits, Quarterly Basis, Reuters, Trading Accounts, Trading Group, Transaction Tax No Comments »New comprehensive book on High-Frequency Trading
December 13th, 2009 Before You Invest A hands-on guide to the quick and ever-changing world of high-frequency, algorithmic tradingFinancial markets are undergoing rapid innovation due to the continuing proliferation of computer power and algorithms. These developments have made a new investment discipline called high-frequency trading.This book covers all aspects of high-frequency trading, from the business case and formulation of thoughts through the development of trading systems to application of capital and subsequent performance evaluation.
Posted in Finance Fraud Tags: Arbitrage, Book Covers, Business Case, Computer Power, Deviations, Endeavors, High Frequency, Industry Professional, Investment Discipline, Irene, Key Performance, Performance Benchmarks, Performance Evaluation, Proliferation, Quantitative Trading, Rapid Innovation, Trade Quality, Trading Post, Trading Strategies, Year Book No Comments »
