Updates from March, 2014 Toggle Comment Threads | Keyboard Shortcuts

  • Carmen C 21:23 on March 30, 2014 Permalink | Reply
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    TradingScreen’s Monday Morning Briefing 

    Key Regulatory Developments:

    Litigation:

    Technology:

    Thought Leadership:

     
  • Carmen C 12:14 on March 28, 2014 Permalink | Reply
    Tags: activist investor, , ,   

    Hedge Fund News Wrap: Week Ending 3/28/14 

    Hedge Fund, Greenlight Capital, Identifies Anonymous Blogger

    hedge_fund_news_wrap

    Hedge fund manager, David Einhorn, now knows the identify of the anonymous blogger who had discussed one of his hedge fund’s stock positions before the information was publicly announced. As a result, Einhorn has dropped a lawsuit against the popular blogging site, Seeking Alpha.

    (More …)

     
  • Carmen C 14:37 on March 26, 2014 Permalink | Reply
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    Video: Mark Rogers on the US Economy — Week of March 24, 2014 

    Econoday’s Mark Rogers provides a look at key economic announcements for the US. This week: After rethinking Fed Chair Yellen’s comments, markets are looking for direction in housing and manufacturing this week.

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    Econoday reports, available on TradingScreen’s award-winning TradeSmart EMS, provide alerts on upcoming economic announcements, and jargon-free analysis of their potential market impact. Mark Rogers, Senior Economist for U.S. markets, has over 19 years of experience with the Federal Reserve Bank of Atlanta as an economist and forecaster for national and regional economies.

    Click to learn about getting access to Econoday’s economic reports on TradingScreen.

     

     
  • Carmen C 06:19 on March 24, 2014 Permalink | Reply
    Tags: , , , , ,   

    TradingScreen’s Monday Morning Briefing 

    Key Regulatory Developments:

    Litigation:

    Technology:

    Thought Leadership:

     
  • Carmen C 12:09 on March 21, 2014 Permalink | Reply
    Tags: , , macro funds,   

    Hedge Fund News Wrap: Week Ending 3/21/14 

    Highbridge Capital Management Hires Ex-SAC Managers

    Highbridge Capital Management has decided to dip its hand in SAC Capital Advisors’ talent pool, following in the footsteps of Balyasny Asset Management, BlueCrest Capital Management, and Moore Capital Management.

    hedge_fund_news_wrap

    According to the New York Times DealBook, Highbridge has hired two top SAC portfolio managers. Wayne Chambless, who specializes in short-selling, and Christopher Procaccini, who specializes in healthcare stocks, have been hired to join the JP Morgan Chase-owned hedge fund.

    (More …)

     
  • TradingScreen 12:32 on March 18, 2014 Permalink | Reply
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    Video: Mark Rogers on the US Economy — Week of March 17, 2014 

    Econoday’s Mark Rogers provides a look at key economic announcements for the US. This week: The US economy sees a strong rebound on weather effects.

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    This video doesn’t exist

    Econoday reports, available on TradingScreen’s award-winning TradeSmart EMS, provide alerts on upcoming economic announcements, and jargon-free analysis of their potential market impact. Mark Rogers, Senior Economist for U.S. markets, has over 19 years of experience with the Federal Reserve Bank of Atlanta as an economist and forecaster for national and regional economies.

    Click to learn about getting access to Econoday’s economic reports on TradingScreen.

    Highlights:

    • Industrial production stronger than expected: Warm weather effect? 0.17
    • What is the industrial output report measuring, and why does it matter? 1.50
    • Will there be a further weather-related rebound after February?  2.30
    • Janet Yellen’s first press conference: “She will become her own person, eventually…” 2.57
    • “We can expect $10 billion taper each FOMC meeting until we reach zero” 4.01
    • There is a reduction in the GDP forecast: We need to pay close attention to the forecast coming out this Wednesday 5.10
     
  • Carmen C 10:37 on March 17, 2014 Permalink | Reply
    Tags: , , , ,   

    TradingScreen’s Monday Morning Briefing 

    Key Regulatory Developments:

    Litigation:

    Technology:

    Thought Leadership:

     
  • Carmen C 12:04 on March 14, 2014 Permalink | Reply
    Tags: , , , , social media   

    Hedge Fund News Wrap: Week Ending 3/14/14 

    SAC Capital Reveals New Name

    hedge_fund_news_wrap

    Scandal-ridden hedge fund, SAC Capital Management, has announced a new name as it becomes a family office. The hedge fund decided to stay close to home with its branding, choosing the name “Point72 Asset Management,” which refers to SAC’s longtime, official headquarters at 72 Cummings Road in Stamford, Connecticut.

    (More …)

     
  • TradingScreen 10:31 on March 12, 2014 Permalink | Reply
    Tags: dealer, , foreifgn exchange, , , , settlement, , three-quotes rule,   

    Top Five Worst Practices for Foreign Exchange TCA 

    By Jon Fatica, Global Head of Analytics, TradingScreenjonfatica.jpg

    Buy side interest in Transaction Cost Analysis (TCA) has reached new highs after potential rigging of FX fixings was uncovered.

    As the buy side ponders whether they have “left money on the table,” many  firms have realized that  Transaction Cost Analysis is a “must have,” rather than “nice to have.”

    Many potential buyers of TCA are working off compliance checklists of best practices to adopt. Unfortunately, these lists are far from foolproof; adopting these best practices won’t ensure lower transaction costs, improved transparency into the full investment process, or improved execution quality.

    Rather than produce yet another best-practice list, I thought it might be more helpful to create a list of WORST-practices – things to definitely avoid – to educate buyers on how to stay away from expensive TCA mistakes:

    1. Approaching Foreign Exchange Execution As An Afterthought: At many firms, foreign exchange settlement is a trading afterthought in the sense that it is just an operational process and not a risk-taking activity. This creates an ironic situation where traders sweat and fret over local currency price improvement, only to give it all away, needlessly, when the foreign exchange portion of the transaction is settled.
    2. Putting All Your Faith In Three-Quotes Rule: Obtaining three competing quotes on each transaction sounds like a good strategy to ensure that you are receiving competitive pricing. However, it ignores other more sophisticated execution tactics and the timing of the transaction. For example, obtaining three competing quotes near the volatile fixing time of day can produce pricing that is much worse than other highly-liquid times of the day. There are many tactics involving timing, size of order (spread rises geometrically by size of order), use of algorithms, partial/optimal netting, and many other criteria that need to be in the trader’s tactical arsenal to ensure best execution.
    3. Not Being Able To Access The Data After The Trading Is Done. Many traders cannot export their transactions from their execution platform for analysis. Obviously, this limits their ability to analyze it. Because foreign exchange lacks a centralized system of record, it’s critical for users to find a way to see the bigger picture of aggregate pricing, across dealers, and over time. Having multi-dealer, streaming data available for analysis in an integrated OMS / EMS platform is the new gold-standard for being able to produce meaningful transaction cost analysis, especially within foreign exchange.
    4. Maintaining Dealer Relationships That Are Opaque, Or A Bit Too Cozy. There is nothing wrong with a dealer taking a trader out for some surf and turf, as long as that broker is supplying superior execution as well. It’s important for buy side firms to have transparency into execution costs of all dealers, and pay special attention to relationships where transaction costs are consistently, or even “occasionally,” high. Otherwise, that steak and lobster could turn out to be the most expensive meal that a firm ever pays for.
    5. Having TCA That Is Purely Retrospective, And Detached From Trading.  The best TCA insights won’t do a firm any good if nobody is paying attention to the poor grunt producing  the reports. At many firms, the transaction cost analysis function is separated from trading, producing backwards -looking analysis that has little impact on the day-to-day operations of traders. This retrospective TCA can be important, as long as those insights are read and acted upon to shape future trades. It is even better when traders can see real-time TCA integrated into their workflow, as this can actually improve alpha, in addition to helping traders avoid some expensive mistakes.

    Transaction Cost Analysis is an essential safeguard for the buy side to ensure that it receives best execution. Now, more than ever, it’s important for the buy side to have as clear an understanding of the underlying transaction costs and changing micro market structure, as they would their overall returns.

    That said, great tools don’t work without great procedures behind them, and great analysis offers no insight if it’s never read.

    Adopting best practices, and carefully avoiding the worst-practices, will ensure better transaction quality and lower costs for all investors.

     

    LEARN MORE:

     

     
  • Carmen C 09:44 on March 10, 2014 Permalink | Reply
    Tags: , , , ,   

    TradingScreen’s Monday Morning Briefing 

    Key Regulatory Developments:

    Litigation:

    Technology:

    Thought Leadership:

    • TradingScreen’s CEO Buhannic on RiskHub 
     
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