Early in 1994, Christie and Schultz published "Why do NASDAQ Market Makers Avoid Odd-Eighth Quotes?"
noting that although the minimum price variation was an eighth of a dollar, the vast majority of quotes and executions occurred on quarters of a dollar. Later the same year, Christie, Harris, and Schultz published "Why did NASDAQ Market Makers Stop Avoiding Odd-Eighths Quotes?"
with the following abstract: "On May 26 and 27, 1994 several national newspapers reported the findings of Christie and Schultz (1994) who cannot reject the hypothesis that market makers of active NASDAQ stocks implicitly colluded to maintain spreads of at least $0.25 by avoiding odd-eighth quotes. On May 27, dealers in Amgen, Cisco Systems, and Microsoft sharply increased their use of odd-eighth quotes, and mean inside and effective spreads fell nearly 50 percent. This pattern was repeated for Apple Computer the following trading day. Using individual dealer quotes for Apple and Microsoft, we find that virtually all dealers moved in unison to adopt odd-eighth quotes."
posted by d. z. wang
on Jul 18, 2014 -
It's Time For a Hard Bitcoin Fork.
"A Bitcoin mining pool, called GHash and operated by an anonymous entity called CEX.io, just reached 51% of total network mining power today. Bitcoin is no longer decentralized. GHash can control Bitcoin transactions."
posted by chunking express
on Jun 14, 2014 -
Today, the Supreme Court issued its 5-4 opinion in McCutcheon v FEC.
The Government has a strong interest, no less critical to our democratic system, in combatting corruption and its appearance. We have, however, held that this interest must be limited to a specific kind of corruption—quid pro quo corruption—in order to ensure that the Government's efforts do not have the effect of restricting the First Amendment right of citizens to choose who shall govern them. For the reasons set forth, we conclude that the aggregate limits on contributions do not further the only governmental interest this Court accepted as legitimate in Buckley. They instead intrude without justification on a citizen’s ability to exercise “the most fundamental First Amendment activities.” Buckley, 424 U. S., at 14.
The judgment of the District Court is reversed, and the case is remanded for further proceedings.
It is so ordered.
The Supreme Court strikes down provisions of the Bipartisan Campaign Reform Act of 2002 ("BCRA") as an unjustified intrusion on First Amendment rights. The link also includes the concurrence of Justice Thomas and a dissent by Justice Breyer. [more inside]
posted by dios
on Apr 2, 2014 -
It used to be that when his trading screens showed 10,000 shares of Intel offered at $22 a share, it meant that he could buy 10,000 shares of Intel for $22 a share. He had only to push a button. By the spring of 2007, however, when he pushed the button to complete a trade, the offers would vanish. In his seven years as a trader, he had always been able to look at the screens on his desk and see the stock market. Now the market as it appeared on his screens was an illusion.
In an excerpt/adaption of his new book Flash Boys: A Wall Street Revolt
, Michael Lewis follows Brad Katsuyama from uncovering evidence of high-speed electronic front-running to the founding of the IEX exchange intended to discourage it. The Wolf Hunters of Wall Street
posted by figurant
on Mar 31, 2014 -
There is much talk today of a financial and economic crisis comparable to the 1930s. With the threat of a currency war and the euro’s collapse looming, the specter of the Great Depression’s bloody aftermath has returned with a vengeance. Several versions of how to make human beings and build society co-existed during the Cold War, when much of the world won independence from colonial empire. Yet, discussion of humanity’s growing interdependence is today limited to a one-world capitalism driven by finance. What have anthropologists to say about that? It would seem very little. But a positive case can be made for the discipline’s contribution to public debate. We make such a case here. We review recent developments in the anthropology of money and finance, listing its achievements, shortcomings and prospects, while referring back to the discipline’s founders a century ago. Economic anthropologists have tended to restrict themselves to niche fields and marginal debates since the 1960s. We hope to reverse this trend by focusing on money’s role in shaping global society and bringing world history into a more active dialogue with ethnography. Money and finance: For an anthropology of globalization by Keith Hart and Horacio Ortiz
posted by infini
on Feb 12, 2014 -
In 2014, Bitcoin (BTC) has become established as increasingly "real" money with government regulatory interest
, law enforcement
, and growing acceptance
, but also as the reserve cryptocurrency for hundreds of "altcoins,"
making them also convertible to legacy money. Foremost among these is Litecoin (LTC),
which introduced the scrypt hashing algorithm to cryptocurrency, democratizing coin mining by being best suited to common GPUs rather than Bitcoin's dedicated mining equipment. Recently donated LTC paid for a forest
in Madagascar. Peercoin (PPC),
next in prominence, introduces "proof of stake" where less energy is spent mining and existing coins pay interest. Dogecoin (DOGE),
a fork of Litecoin (previously
covered on Metafilter
), continues heading to the moon
, with more transactions than all other coins combined
, thriving markets in digital goods
, an upcoming party in NYC's Bitcoin Center on Wall Street
, much charity
, and the recent announcement
that new Dogecoins will be generated indefinitely. A selection of other foremost and interesting cryptocurrencies is within. [more inside]
posted by save alive nothing that breatheth
on Feb 5, 2014 -
There is another bubble.
Before it's burned, Coal, Oil and Gas sit for years on the balance sheets of private (and national) resource companies, as "known reserve" assets. Assets that, someday, will become revenues. Or will they?
And if they won't, what will the balance sheets of ExxonMobil, Chevron, BP, Petrochina, and Gazprom actually look like? [more inside]
posted by anthill
on Dec 19, 2013 -
This shift in how companies are governed and raise money is bringing with it a structural change in American capitalism. That should be a matter of great debate. Are these new businesses, with their ability to circumvent rules that apply to conventional public companies, merely adroit exploiters of loopholes for the benefit of a plutocratic few? Or do they reflect the adaptability on which America’s vitality has always been based?
- Rise of the distorporation
- how changes in the way companies are financed and managed is changing the wealth distribution of America.
posted by Artw
on Nov 2, 2013 -
There have been a few misconceptions about the Bowie securitizations over the years. I’ll try to describe, in relatively plain English, what happened.
posted by rollick
on Sep 6, 2013 -
As Andrew Haldane, director of stability at the Bank of England, put it in a historical overview a few years ago, ‘there is one key difference between the situation today and that in the Middle Ages. Then, the biggest risk to the banks was from the sovereign. Today, perhaps the biggest risk to the sovereign comes from the banks. Causality has reversed.’ Yes, it has: and the sovereign at risk is us. The reason for that is that in the UK bank assets are 492 per cent of GDP. In plain English, our banks are five times bigger than our entire economy. (When the Icelandic and Cypriot banking systems collapsed the respective figures were 880 and 700 per cent.) We know from the events of 2008 and subsequently that the financial sector, indeed the whole world economy, is in an inherently unstable condition. Put the size together with the instability, and we are facing a danger that is no less real for not being on the front page this exact second. This has to be fixed, and it has to be fixed soon, and nothing about fixing it is easy.
- "Let's Consider Kate
," John Lanchester, London Review of Books
posted by Rustic Etruscan
on Jul 10, 2013 -
The Lonely Redemption Of Sandy Lewis
“The complicity on Wall Street is sickness!” Mr. Lewis says. He fixes you with his laser stare. “If you think the big firms are being honest” — his tone slides streetwise — “well, sweetheart, go think something else!”
The temptation is to dismiss Mr. Lewis, 73, as a crank, except he once ruled as an eccentric genius of arbitrage, with a preternatural feel for the tectonic movements of the markets. He has railed for decades about venalities now on daily display. Rude truth is his currency. [more inside]
posted by the man of twists and turns
on Jul 9, 2013 -
Bloomerg compiles a list of the 250 highest CEO-to-employee-pay ratios
, estimated based on publicly available information. They also publish any rebuttals issued by those companies.
posted by Freon
on May 1, 2013 -
The problem is that cinema, as I define it and as something that inspired me, is under assault by the studios and, from what I can tell, with the full support of the audience. The reasons for this, in my opinion, are more economic than philosophical, but when you add an ample amount of fear and lack of vision and a lack of leadership you’ve got a trajectory that is pretty difficult to reverse.
- "Retired" director Steven Soderbergh
speaks to the San Francisco International Film Festival about the state of cinema
, full audio at bottom of page 2
posted by Artw
on Apr 29, 2013 -
"Gold's crash this weekend is, as Oprah might say, a teachable moment. Crashes like this are a good way to find out how markets work. It's like a game of financial Clue, a way to keep sharp your skills of deduction. You don't have to be a stock investor or a math whiz to figure it out, either – you just have to have a good grasp of news and human psychology."
- the Guardian on this week's crash in gold commodity prices.
posted by Slap*Happy
on Apr 18, 2013 -
"When we first started working on Dustforce, it was frustrating to not be able to find much data about whether indie game development is a realistic thing to do with your life." Hitbox Team helps remedy that for future designers in this article about the finances and sales
of their game, Dustforce
posted by gilrain
on Apr 16, 2013 -
"Trusting your child with someone else is one of the hardest things that a parent has to do — and in the United States, it’s harder still, because American day care is a mess.
About 8.2 million kids—about 40 percent of children under five — spend at least part of their week in the care of somebody other than a parent. Most of them are in centers, although a sizable minority attend home day cares.... In other countries, such services are subsidized and well-regulated. In the United States, despite the fact that work and family life has changed profoundly in recent decades, we lack anything resembling an actual child care system. Excellent day cares are available, of course, if you have the money to pay for them and the luck to secure a spot. But the overall quality is wildly uneven and barely monitored, and at the lower end, it’s Dickensian."
posted by zarq
on Apr 15, 2013 -
Where Banks really Make Money On IPOs
All of these numbers are hypothetical, of course, but the bigger point is simple: if Goldman manages to get kickbacks, in terms of extra commissions, of more than 7% of its clients’ profits, then it has a financial incentive to underprice the IPO. And Goldman’s clients were desperate to give it kickbacks: they didn’t just route their standard trading through Goldman, since that wouldn’t generate enough commissions. Instead, they bought and sold stocks on the same day, at the same price. Capstar Holding, for instance, bought 57,000 shares in Seagram Ltd at $50.13 per share on June 21, 1999 — and then sold them, on the same day, at the same price. Capstar made nothing on the trade, but Goldman made a commission of $5,700. Capstar’s Christopher Rule says that in May 1999, fully 70% of all of his trading activity “was done solely for the purpose of generating commissions”, so that he could continue to keep on getting IPO allocations.
Rigging The IPO Game [more inside]
posted by the man of twists and turns
on Mar 11, 2013 -
"Twenty five years ago I quit a job on Wall Street to write a book about Wall Street. Since then, every year or so, UPS has delivered to me a book more or less like my own, written by some Wall Street insider and promising to blow the lid off the place, and reveal its inner workings, and so on. By now, you might think, this game should be over. The reading public would know all it needed to know about Wall Street, and the publishing industry would be forced to look to some other industry for shocking confessions from insiders. Somehow this isn't the case
posted by vidur
on Feb 5, 2013 -
"Of the top 100 Swiss companies, 49 give shareholders a consulting vote on the pay of executives. A few other countries, including the United States and Germany, have introduced advisory "say on pay" votes in response to the anger over inequality and corporate excess that drove the Occupy Wall Street movement. Britain is also planning to implement rules in late 2013 that will give shareholders a binding vote on pay and "exit payments" at least every three years. Minder's initiative goes further
, forcing all listed companies to have binding votes on compensation for company managers and directors, and ban golden handshakes and parachutes. It would also ban bonus payments to managers if their companies are taken over, and impose severe penalties — including possible jail sentences and fines — for breaches of these new rules."
posted by vidur
on Jan 21, 2013 -
"We decided to go on an adventure through the financial statements of one bank
[Wells Fargo], to explore exactly what they do and do not show, and to gauge whether it is possible to make informed judgments about the risks the bank may be carrying. We chose a bank that is thought to be a conservative financial institution, and an exemplar of what a large modern bank should be."
posted by vidur
on Jan 14, 2013 -
Gold, Golden, Gilded, Glittering
- The Unexpected Double History Of Banking And The Art World
In fact, we have long entrusted the task of representing our ideas of value to members of two professions that might seem to have little in common: banking and art. And, in the last seven hundred years or so, it has happened more than once that visual and financial inventors have come up with strikingly similar representations. There is more than a shadow of resemblance between the purchase of the Hirst skull in 2007 and the mortgage-backed-securities debacle that made of Lehman Brothers in the following year one of the great public pictures of vanitas we’ve had. And, when you look further into these intersections, you often find that what is really at stake is a change in the way we feel and understand time. [more inside]
posted by the man of twists and turns
on Jan 7, 2013 -