Showing posts with label markets. Show all posts
Showing posts with label markets. Show all posts
8:11 AM
10:02 PM
Market participants are trying to come to grips with technology glitches. These glitches have the potential to destabilize the markets. Electronic trading errors and how they can be prevented is being looked at again. Best practices and deployment are among the policies to ensure market participants have better systems.
These are the 5 biggest problems with the U.S. equity markets:
A kill switch approach might be the most widely accepted approach to the problem. A kill switch at the exchange level that could halt trading if a broker-dealer exceeded a certain peak net volume threshold has been discussed among several working groups.
More oversight and testing has been needed to enforce a market-wide framework. Perhaps collaboration on algorithms isn't possible, but on a kill switch.... well, just maybe.
These are the 5 biggest problems with the U.S. equity markets:
- It's extremely fragmented.
- High-frequency traders supply 40 to 60 percent of the volume traded.
- Mini-flash crashes are erupting in stocks on a daily basis.
- Algorithms are rushed to the market and may not be adequately tested.
- The SEC lacks a much-needed consolidated audit trail to police all trading activity.
A kill switch approach might be the most widely accepted approach to the problem. A kill switch at the exchange level that could halt trading if a broker-dealer exceeded a certain peak net volume threshold has been discussed among several working groups.
More oversight and testing has been needed to enforce a market-wide framework. Perhaps collaboration on algorithms isn't possible, but on a kill switch.... well, just maybe.
7:57 PM
Rick Santelli of CNBC gives the blueprint of the central bank plan and warns it can't go on forever.
Many thanks to Tyler Durden for bringing this to our attention.
Many thanks to Tyler Durden for bringing this to our attention.
9:56 AM
After the election equity markets took a beating. The fiscal cliff on the horizon added to the negativity. Congress and the White House have helped to deflect the negative mood. If we go over the cliff, it will be a risk-on event.
For more details read the article from Seeking Alpha
In feeling that the cliff will be avoided there are two bullish ideas from the article I share with you.
SPDR S&P 500 Index Fund (SPY) - 109 billion dollars in assets.
SPDR Dow Jones Industrial Index Fund (DIA) - 10.32 billion dollars in assets.
Central bank intervention bolstered markets. The fiscal cliff issue will dictate market direction. Act according to your strategy and tactics. This article is for your consideration only.
For more details read the article from Seeking Alpha
In feeling that the cliff will be avoided there are two bullish ideas from the article I share with you.
SPDR S&P 500 Index Fund (SPY) - 109 billion dollars in assets.
SPDR Dow Jones Industrial Index Fund (DIA) - 10.32 billion dollars in assets.
Central bank intervention bolstered markets. The fiscal cliff issue will dictate market direction. Act according to your strategy and tactics. This article is for your consideration only.