• Теги
    • избранные теги
    • Компании307
      • Показать ещё
      Страны / Регионы234
      • Показать ещё
      Международные организации15
      • Показать ещё
      • Показать ещё
      • Показать ещё
      • Показать ещё
Citadel Investment Group
(23.05.2008) У Citadel - один из наиболее мощных по интеллектуальной силе аналитических отделов среди всех инвестиционных фондов, а также есть «запасная» компьютерная система, расположенная где-то за пределами Чикаго. …Два основных фонда, через которые Citadel торгует на биржах, ...

(23.05.2008) У Citadel - один из наиболее мощных по интеллектуальной силе аналитических отделов среди всех инвестиционных фондов, а также есть «запасная» компьютерная система, расположенная где-то за пределами Чикаго.

…Два основных фонда, через которые Citadel торгует на биржах, называются Kensington Global и Wellington. Сейчас на Citadel приходится 2-3% дневного оборота торгов на Нью-Йоркской, Лондонской и Токийских биржах (около 70 млн. акций), почти 10% рынка казначейских облигаций и около 15% рынка опционов. На рынке опционов Citadel – единственный хедж-фонд, который может действительно серьезно на влиять на торги.

Фонд не ограничивает свою торговлю перечисленными инструментами, а зарабатывает буквально на всем, что продается и покупается: от фьючерсов на газ до валюты



Развернуть описание Свернуть описание
Выбор редакции
24 октября, 13:45

Biggest US Discount Brokerage TD Ameritrade Buys Scottrade For $4 Billion

The previously noted surge in Monday merger announcements, which seek to take advantage of still cheap credit before yields rise, got its latest entrant moments ago when discount brokerage TD Ameritrade agreed to acquire peer Scottrade in a $4 billion cash and stock transaction. Per the press release, "The transaction combines two highly complementary organizations with long histories of helping millions of people invest in their financial futures. For TD Ameritrade, the transaction adds significant scale to its retail business, extends its leadership in trading, and more than quadruples the size of its branch network." Moments after the announcement, AMTD reported that it missed both consensus EPS est. of $0.38, reporting $0.35 in Q4, as well as revenues which were $829 million, below the est. $837.9 million, suggesting that organic growth in the sector may have peaked and explaining the urge to shift tactically to cheap debt-funded M&A. TD Ameritrade, the biggest discount brokerage by trade executions, said it expected to realize about $450 million in combined annual expense synergies, and more than $300 million in additional longer-term opportunities once the deal closes. As disclosed, the terms of the trade are as follows: The transaction, which has been approved by the boards of directors of TD Ameritrade, TD Bank Group (TD) and Scottrade, will take place in two, concurrent steps. First, TD will purchase Scottrade Bank from Scottrade Financial Services, Inc. for $1.3 billion in cash consideration. Under the terms of the proposed acquisition, Scottrade Bank will merge with and into TD Bank, N.A., an indirect wholly-owned subsidiary of The Toronto-Dominion Bank. Additionally, TD will purchase $400 million in new common equity (11 million shares) from TD Ameritrade in connection with the proposed transaction, pursuant to its preemptive rights.   Then, immediately following that acquisition, TD Ameritrade will acquire Scottrade Financial Services, Inc., for $4 billion, or $2.7 billion net of the proceeds from the sale of Scottrade Bank. The $2.7 billion will be comprised of: $1.0 billion in new common equity (28 million shares) issued to Scottrade shareholders; and $1.7 billion in cash, which includes TD Ameritrade cash ($900 million), a new debt offering ($400 million), and the proceeds from the sale of 11 million shares to TD ($400 million)   Additionally, following the transaction’s close, Scottrade Founder and CEO Rodger Riney will be appointed to the TD Ameritrade Board of Directors. On a pro forma basis, the combined company would look as follows: 600,000 average client trades per day $944 billion in total client assets 10 million funded client accounts $14 billion in margin balances $149 billion in cash balances Elsewhere, HFTs everywhere, but mostly at Citadel, are chomping at the bits for a first look at frontrunning all the newly aggregated retail order flow.

20 октября, 09:11

Предприниматели Латвии не верят в позитивные изменения в стране

На прошлой неделе Кабинет министров принял государственный бюджет на 2017 год и законопроект о среднесрочном бюджете на 2017–2019 годы.

Выбор редакции
18 октября, 20:10

Опубликован список украинских интернет-магазинов, где опасно делать покупки

Около 6000 интернет-магазинов, среди которых 67 украинских, оказались заражены вирусом, с помощью которого данные платежных карт пользователей попадают мошенникам. Об этом пишет AIN.ua. Список: 12v-auto.com.ua 2rest.com.ua aquaexpert.com.ua armen_shop.sega.pp.ua auto-service.kiev.ua beato.com.ua bikerland.com.ua bonfason.com.ua boutique.biosalon.ua bradus.com.ua casualua.com.ua […]

Выбор редакции
14 октября, 18:26

"Flash Crash Mastermind" Navinder Sarao To Be Extradited To The US, Faces Up To 380 Years In Jail

In one of the most ridiculous perversions of justice, last April the SEC flipped its official narrative over the May 2010 flash crash, when it moved away from its closely held "explanation" that the 1000 point plunge in the Dow Jones was due to a trade by Waddell and Reed, and instead blamed a sole operator, London-based futures trader, Navinder Singh Sarao, who had lived with his parents (although he did not trade from the basement) for the fiasco. After he was officially charged in 2015, for the past year and a half, Sarao had fought a long extradition battle with US prosecutors which he officially lost earlier today, when British Lord Justice Gross and Justice Nicol ruled he was to face extradition to the US. The duo said their reasons for the ruling would be set out “in due course”, according to the FT. The ruling means Sarao’s guilt or innocence will be determined in the US, where the HFT lobby has supreme authority, and not in British courts. As the FT adds, the court hearing was the final barrier for the trader, who lost a court battle earlier this year when a judge ruled that he should be sent to the US to face trial on 22 charges ranging from wire fraud to commodities manipulation on US futures markets over a four-year period. Sarao's extradition will begin in 28 days’ time. To succeed in their extradition request, US prosecutors simply had to prove that Mr Sarao’s alleged actions in persistent ‘spoofing’ met the “dual criminality” test – where his conduct could constitute a criminal offence in both jurisdictions. The activity is not as clearly defined in Britain as in the US. Sarao suffered a blow earlier this year when District Judge Quentin Purdey ruled that the 36 year-old’s alleged conduct could constitute an offence in both countries and so he could be sent to the US. In other words, the narrative has stuck that it was Sarao's spoofing that was the necessary and sufficient to cause a flash crash, and yet with him out of the picture, recurring incidents of total liquidity loss, observed most recently in the plunge in sterling last Friday, continue on an almost daily basis. In fact, the market fragmentations and breaches have gotten so ridiculous, none other than Citi's Matt King mocked dubbed it a "penny stock" market... ... while one of JPM's best analysts blamed the recurring flash crashes, most notably in the FX sector, on HFTs. Perhaps it was not Sarao's actions, which incidentally are done every day by thousands of traders across the globe. Perhaps, just perhaps, it is the massive, and well-funded, HFT lobby that is responsible for a market that is so broken even central bankers are concerned about the collapsing liquidity. The same HFTs, incidentally, who yesterday slammed a proposed speed bump at the Chicago Stock Exchange. As Bloomberg wrote, an industry advocacy group of proprietary, high-speed trading firms called the FIA PTG, cautioned the SEC not to approve the Chicago Stock Exchange’s proposal to delay certain orders on its venue by 350 microseconds, in a letter dated Thursday. The move would be similar to what IEX has done for stock trading.  According to the FIA PTG group, the Proposed CHX delay would unfairly advantage certain traders and boost odds of market manipulation. Of course, what they meant was that without an ability to frontrun, and manipulate, yet another exchange it is the HFT lobby that would lose out. “Many of our members might be in a position to benefit” from the delay, FIA PTG wrote; “however, we believe that it would be a negative development for U.S. equity market structure, add unwarranted complexity, and create a bad precedent for this and other types of discriminatory artificial delays.” Odd, because the SEC overruled all that recently when it granted IEX exchange status. For those wondering who makes up the group of "traders" eager to preserve a status quo that rewards HFT frontrunning, here is the answer: FIA PTG’s members include Citadel Securities, DRW Holdings, IMC Financial Markets, Jump Trading, KCG Holdings But back to Sarao: as the FT writes, his offenses carry sentences totaling up to 380 years. Meanwhile, sunbathing on a beach somewhere...

Выбор редакции
11 октября, 00:00

The Problem With Voting Rights in New York

Jeffrey Toobin, The New YorkerThe state with one of the worst records on voting rights is the nationâ??s great citadel of liberalism.

10 октября, 05:19

Donald Trump Doesn't Know How Trojan Horses Work

function onPlayerReadyVidible(e){'undefined'!=typeof HPTrack&&HPTrack.Vid.Vidible_track(e)}!function(e,i){if(e.vdb_Player){if('object'==typeof commercial_video){var a='',o='m.fwsitesection='+commercial_video.site_and_category;if(a+=o,commercial_video['package']){var c='&m.fwkeyvalues=sponsorship%3D'+commercial_video['package'];a+=c}e.setAttribute('vdb_params',a)}i(e.vdb_Player)}else{var t=arguments.callee;setTimeout(function(){t(e,i)},0)}}(document.getElementById('vidible_1'),onPlayerReadyVidible); Donald Trump, the Republican presidential nominee, doesn’t like Hillary Clinton’s position on Syrian refugees. At Sunday night’s presidential debate with the former secretary of state, he warned that admitting more Syrian refugees “is going to be the great Trojan horse of all time.” He meant it as an attack. But there’s an irony to the charge. Much like Syrian refugees, who have fled war, chaos and ISIS to build better lives for themselves and their children, the people in the Trojan horse were the heroes of the story. The tale of the horse originated in the Odyssey, a Greek epic poem by Homer. (It’s not mentioned in the Iliad, which focuses on the earlier parts of the war.) After a long siege, the Greeks hid in the horse and burst out once the Trojans (their Middle Eastern rivals) brought it into the city. It’s a Greek poem, so the Greeks are generally painted as the good guys. Maybe Trump was thinking of Virgil’s telling of the story in the Aeneid, a Latin poem from the early days of the Roman Empire. (Virgil’s hero, Aeneas, was a Trojan.) Here’s his version:  ‘After many years have slipped by, the leaders of the Greeks, opposed by the Fates, and damaged by the war, build a horse of mountainous size, through Pallas’s divine art, and weave planks of fir over its ribs: they pretend it’s a votive offering: this rumour spreads. They secretly hide a picked body of men, chosen by lot, there, in the dark body, filling the belly and the huge cavernous insides with armed warriors. Tenedos is within sight, an island known to fame, rich in wealth when Priam’s kingdom remained, now just a bay and an unsafe anchorage for boats: they sail there, and hide themselves, on the lonely shore. We thought they had gone, and were seeking Mycenae with the wind. So all the Trojan land was free of its long sorrow. The gates were opened: it was a joy to go and see the Greek camp, the deserted site and the abandoned shore. Here the Dolopians stayed, here cruel Achilles, here lay the fleet, here they used to meet us in battle. Some were amazed at virgin Minerva’s fatal gift, and marvel at the horse’s size: and at first Thymoetes, whether through treachery, or because Troy’s fate was certain, urged that it be dragged inside the walls and placed on the citadel. But Capys, and those of wiser judgement, commanded us to either hurl this deceit of the Greeks, this suspect gift, into the sea, or set fire to it from beneath, or pierce its hollow belly, and probe for hiding places. The crowd, uncertain, was split by opposing opinions. Then Laocoön rushes down eagerly from the heights of the citadel, to confront them all, a large crowd with him, and shouts from far off: ‘O unhappy citizens, what madness? Do you think the enemy’s sailed away? Or do you think any Greek gift’s free of treachery? Is that Ulysses’s reputation? Either there are Greeks in hiding, concealed by the wood, or it’s been built as a machine to use against our walls, or spy on our homes, or fall on the city from above, or it hides some other trick: Trojans, don’t trust this horse. Whatever it is, I’m afraid of Greeks even those bearing gifts.’ So saying he hurled his great spear, with extreme force, at the creature’s side, and into the frame of the curved belly. The spear stuck quivering, and at the womb’s reverberation the cavity rang hollow and gave out a groan. And if the gods’ fate, if our minds, had not been ill-omened, he’d have incited us to mar the Greeks hiding-place with steel: Troy would still stand: and you, high tower of Priam would remain.   -- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.

07 октября, 16:20

Could The South Be Good For The Libertarian Party?

Southerners are downright feisty about their independence. There's a great sign at a park on the Alabama-Tennessee border which proclaims "We Dare Defend Our Rights!" Yet this rebellious streak doesn't seem to translate to independent candidates or third party challengers, who tend to fare poorly in Dixie. That may be changing as the Libertarian Party appeals to Southerners in general and Georgians in particular. Several years ago, I attended a conference at the Citadel in Charleston, South Carolina. A presenter showed us data on how poorly independents and third party challengers have performed in the South. Texas tycoon H. Ross Perot, Illinois Congressman John Anderson, and others, have received fewer Southern votes than most other regions. Sure there have been Dixiecrats like South Carolina's Strom Thurmond, and former Alabama Governor George Wallace, who won Southern states. But doesn't it say something that these men have failed to win more than a few of the Southern states against Northern candidates? The Libertarian Party might be changing that, and it all started with Georgia eight years ago. Of course there was a Libertarian Party before that time. But in the 2008 election, a former Georgia Congressman, as well as a Senate candidate, changed all that. In that year, ex-Congressman Bob Barr became the Libertarian standard-bearer, faring much better than most candidates from his party in the presidential race, even though the nation followed the tight Obama-McCain contest. The other was Attorney and CPA Allen Buckley, the Libertarian nominee for the U.S. Senate. Despite the presence of an incumbent U.S. Senator on the ticket, and an experienced State Senator, Buckley garnered enough votes to force Saxby Chambliss and Jim Martin into a runoff, and for Republicans and Democrats to seek the support of Libertarians for the tie-breaking vote nearly a month after Obama prevailed. Buckley is running again in 2016. Georgia Senate candidate Allen Buckley speaks before LaGrange College students But was 2008 a fluke? The national average for Libertarian votes is about 0.5%-1% in presidential contests and 1-2% in Senate and Congressional races (I have no data for U.S. gubernatorial averages for Libertarian candidates, so I used Senate performance in the state as a proxy for statewide average). Georgia candidates ranging from Allen Buckley to John Monds to Andrew Hunt to Amanda Swafford have made or exceeded national averages, and twice (1992, 2008) thrown the Senate race into a runoff. It is also noteworthy that former New Mexico Governor Gary Johnson, in getting 1.16% of Georgia votes in 2012, nearly doubled the vote total of Barr, a Georgian. That is significant. Yet despite their statewide success, the Libertarian Party faces tremendously long odds in their races for downticket races, especially the U.S. Congress. In an email communique with me, Richard Winger, the Editor of Ballot Access News, wrote the following: "Georgia has had a 5% (of the number of registered voters) petition in place for all minor party and independent candidates for US House since 1943. In all those 73 years, no minor party has ever complied with that law, and no independent complied with it since 1964. There was one independent on in1982 but the law was suspended in 1982 because of late redistricting, for only two Atlanta districts. This is a disgrace. The Libertarian Party has carried counties in Georgia in partisan races for Public Utilities Commissioner, three times (in races between a Libertarian and a Republican). We have had races like that in which we have polled over 1,000,000 votes. We will probably have another race like that this November. It is shocking, unbelievable, that the LP is kept off the ballot for US House in Georgia when we have such voter support. Every other state has had Libertarians on the ballot for US House at least once in this century." Imagine if the Libertarian Party got 5%, of the vote to qualify for Federal Matching Funds, which would enable the party to get more recognition, recruit more followers, and make the 2020 debates, which would only increase the visibility of the party with real national exposure. Since this is the decision of taxpayers to voluntarily contribute to the matching fund, I see no reason why this violates any Libertarian beliefs. A visit to Georgia, especially to college campuses, should help, as several students consider themselves to be strong libertarians. To determine whether college visits would help, I interviewed LaGrange College Presidential Student Ambassador Matt Crawford, a campus leader, who said "Millennials are ready for a change. We are tired of the old two party system where it seems we all lose. The other day I was discussing the current presidential election with a group of fellow college students. These individuals ranged from far left to far right, but we all had one thing in common, none of us were very crazy about the Republican or Democrat nominees. During the course of our discussion, the Johnson-Weld ticket was brought up and almost every student agreed that not only were they the best qualified, but they had the best policy as well. Millennials are ready for something different. They are ready for the third party option that Governor Johnson has to offer." Libertarian VP Candidate William Weld speaks in Atlanta. Photo by Brandon Collins Senate candidate Buckley's visit to my college netted a fairly good turnout. Even more Georgians showed up in Atlanta to see former Massachusetts Governor William Weld, running as Johnson's Vice-Presidential candidate. Many in attendance were enthusiastic college students. It's a sign of not only the power of the Libertarian Party in Georgia, and the potential for what it could become in the region, as conservative Southerners have decide between Donald Trump and a pair of experienced former Republican governors. John A. Tures is a professor of political science at LaGrange College in LaGrange, Ga. He can be reached at [email protected] -- This feed and its contents are the property of The Huffington Post, and use is subject to our terms. It may be used for personal consumption, but may not be distributed on a website.

05 октября, 05:21

ALERT: Markets to implode, only FX will be left

Warning to investors - traditional markets are flawed.  In one of many hypothetical futures, not so far in the future, FX may be the only game in town.  As we explain in Splitting Pennies - Understanding Forex - it's FX that drives the world, not stocks, bonds, commodities, or real estate.  Let's take a quick look at some of the cracks in traditional markets. HFT Market to collapse, or drastically change During the credit crisis HFT snuck in a huge business for themselves in the stock market via Reg NMS by manipulating 'order types' and 'latency'.  Well, that's all starting to unwind.  Top HFT firms are fearful that the SEC is about to 'spill the beans' according to Bloomberg: Some of the biggest electronic traders are complaining that a new test in the U.S. stock market will compromise their top-secret strategies, one of their most valuable assets.  Citadel Securities and KCG Holdings Inc. are among a chorus of brokers questioning elements of a U.S. Securities and Exchange Commission experiment, which began Monday, designed to whip up more trading in small companies. Their complaint is that the test will force firms to publicly expose detailed trading data with only the thinnest veil of anonymity, allowing competitors to reverse engineer how their prized trading algorithms work.  For high-speed trading firms, complex computer code is the secret weapon for profiting from the market. Some brokers say they fear that in their test, regulators won’t sufficiently mask their publicly reported trading data.  “It’s going to take someone exactly three seconds to figure out who’s who,” said Jamil Nazarali, head of execution services at Citadel Securities, which is the market-making arm of billionaire Ken Griffin’s Citadel LLC. Trading firms will “likely change their behavior to protect their intellectual property,” making the test’s results less meaningful, he added. And, IEX is set to blow a hole in the dark pools of Wall St. Big Banks collapsing - SOON Previously to the "DB Crisis" - Europe's biggest bank, Douche Bank, is now probably insolvent at best, and at worst - will form a black hole so big that it will suck half of the worlds banks and assets into it when it implodes.  DB isn't just a bank, it's a financial powerhouse - a superbank.  For example, if you've ever bought a currency ETF, it was probably offered by DB: (Note the big black X in the background - good choice DB!) Hmm.. only 35 ETFs in the USA.  Anyway, creating an ETF isn't easy.  DB is registered in almost every country in the world, yes even in Malta.  They are in thousands of businesses.  Unwinding this behemoth will take decades.  Unraveling all of their crimes, money laundering, scandals, and derivatives is practically impossible.  Just one example of a $10 Billion dollar liability, in this case, just money laundering: Almost every weekday between the fall of 2011 and early 2015, a Russian broker named Igor Volkov called the equities desk of Deutsche Bank’s Moscow headquarters. Volkov would speak to a sales trader—often, a young woman named Dina Maksutova—and ask her to place two trades simultaneously. In one, he would use Russian rubles to buy a blue-chip Russian stock, such as Lukoil, for a Russian company that he represented. Usually, the order was for about ten million dollars’ worth of the stock. In the second trade, Volkov—acting on behalf of a different company, which typically was registered in an offshore territory, such as the British Virgin Islands—would sell the same Russian stock, in the same quantity, in London, in exchange for dollars, pounds, or euros. Both the Russian company and the offshore company had the same owner. Deutsche Bank was helping the client to buy and sell to himself...Although the bank’s headquarters remained in Germany, power migrated from conservative Frankfurt to London, the investment-banking hub where the most lavish profits were generated. The assimilation of different banking cultures was not always successful. In the nineties, when hundreds of Americans went to work for Deutsche Bank in London, German managers had to place a sign in the entrance hall spelling out “Deutsche” phonetically, because many Americans called their employer “Douche Bank.”   On the other side of the pond, Wells Fargo - previously one of America's 'trusted' banks, "Main St. bank" - is collapsing after the market learned that their great sales figures were based on a house of cards that was, well, fraudulent.  If you're not aware or not following this crisis, checkout this article for a simple explanation. Real Estate Market Shaky, at best With a major hurricane likely to hit Florida and possibly a direct hit on Miami, which already has a problem with high tides, hot markets such as Miami are feeling multiple pressures. Manhattan apartment sales have plunged 20% -  There are a lot more apartments available for purchase these days in Manhattan. And fewer people are buying.  Sales of previously owned condominiums and co-ops fell 20 percent in the third quarter from a year earlier as potential buyers grew cautious amid more choices, according to a report Tuesday from appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. There were 5,290 resale apartments on the market at the end of September, 53 percent more than the number available in late 2013, the lowest point for listings. The swelling inventory is providing an opportunity to New Yorkers shut out of a market in which construction has been dominated by ultra-luxury condos aimed at the wealthiest buyers. Resales, particularly those priced at less than $1 million, were in chronically short supply in recent years, and those that made it to the market sparked bidding wars. Now, more owners are listing apartments to profit from climbing values, and they’re finding lots of company.  “Rapidly rising prices over the years have pulled more sellers into the market hoping to cash out,” Jonathan Miller, president of Miller Samuel, said in an interview. “But buyers are more wary. There isn’t the same intensity of activity to burn through the new supply.” What's next?   Hedge Funds, not capitalizing on the turmoil, and even losing Well, hedge funds are having their worst year EVER, with fewer than one in five beating a basic market benchmark: In fact, this has been the year investors wanted to do anything but try to pick stocks. Active fund managers had their worst first half ever, with fewer than one in five beating a basic market benchmark, according to data from Bank of America Merrill Lynch that go back to 2003.Stock pickers were done in by two major factors: following the crowd and an uneven pattern of correlations among stocks. The 10 most-crowded stocks lagged the 10 least-owned by a whopping 18 percentage points, which BofAML called "an atypically high spread." So what's left? Forex Markets to dominate the next 20 years There's always Forex algorithms, which Wall St. simply afraid of, because they don't 'control' the FX markets.  Some FX strategies perform month in and month out like clockwork, a pension fund's dream - but why go with something that works when it's politically correct to lose with hedge funds (it's good for jobs, right?). The point is that, FX is a money market - and a super set of other markets.  If the stock market completely crashes like 50%, investors will still have trillions in cash.  It will even create a dollar shortage.  But that cash has to go somewhere.  Some, will go to Euros, Swiss Francs, and other 'money'.  Bitcoin isn't a percent of a percent of a percent, although certainly money will flow into Bitcoin.  Bitcoin isn't viable alterantive to major FX currencies simply because of acceptability.  It's not possible to pay for goods in foreign countries in Bitcoin - but many accept US Dollars.  Until that changes - or until the United States of America ceases to exist as a country (which is probably the only event that could really obliterate FX markets) - then, FX is going to be the only game left in town.  Why?  Because, the US Dollar is supported by bombs.  As long as the US Army has enough gas in their tanks, and munitions in their supply, you can bet dollar markets will function.  Other markets, like real estate, don't have such protection.  But there's a good reason for that.  Because all markets DEPEND on FX.  Without a dollar market, the stock market couldn't exist.  If you want to be Wall St.'s next HFT firm, you first need to fund an account WITH DOLLARS.   So, although many markets teetering on the brink of implosion, FX looking stronger than ever, and until there's a viable alternative (which considering alternatives, China, Russia, Bitcoin, etc... not a real solid candidate next 20 years) we can expect FX supremacy and US Dollar Hegemony for the long term.  So, if you're still naive to the realities of FX - now's a great time to start learning! If you don't know Forex, checkout the book Splitting Pennies - Understanding Forex - or checkout Fortress Capital Trading Academy, who offers a great Introductory course.

03 октября, 02:56

JPMorgan Joins Yellen and Summers In Hinting The Fed May Buy Stocks Next

During her latest testimony in Congress, when asked by rep Mick Mulvaney if the Fed has considered buying equities, Janet Yellen had a cryptic, yet open to interpretation answer: "the Federal Reserve is not permitted to purchase equities. We can only purchase U.S. treasuries and agency securities. I did mention in a speech in Jackson Hole, though, where I discussed longer term issues and difficulties we could have in providing adequate monetary policy. Accommodation may be somewhere in the future, down the line that this is the kind of thing that Congress might consider." Then, the very next day, during a video conference Q&A, Yellen once again unexpectedly latched on to the topic of the Fed buying stocks, saying that "the idea of expanding into areas like equities might be “good thing to think about,” noting that (for now) The Fed is more restricted in which assets it can purchase than other central banks. If we found, I think as other countries did, that they could reach the limits in terms of purchasing safe assets like longer-term government bonds, it could be useful to be able to intervene directly in assets where the prices have a more direct link to spending decisions." Assets such as equities. Then, jumping on to the idea of nationalizing the stock market, none other than the world's most farcical former econopundit, Larry Summers, who has plunged to such recent depths he has to retweet himself on Twitter to get page views for his blog, "floated the idea of continuous purchases of stocks as a potential ingredient in a recipe for the developed world to strengthen economies struggling with subdued growth and inflation." Cited by Bloomberg, Summer said that among the proposals that deserve “serious reflection” is the purchase of a “wider range of assets on a sustained and continuing basis," Summers said in a lecture at a Bank of Japan conference in Tokyo Friday. "I’m not prepared to make a policy recommendation at this point,” he told reporters later. It got even funnier when Summers said that “there are obviously important political and economic questions associated with government ownership of companies,” adding that "some critics could term such a policy as “socialism, while others could highlight that governments already buy stocks in other ways, such as in the U.S. for federal employee pension funds." Still others could term such a policy as utter idiocy, because once a price-indiscriminate entity is unleashed on stocks directly and legally (as opposed to the current framework whereby the Fed merely intervenes by way of its HFT proxy, Citadel, at key inflection points to break selling momentum), it is game over for price discovery and for the concept of capitalism. However, one would not find JPM among the "others." In a note released on Friday, the otherwise serious commentator Nick Panigirtzoglou, author of the closely followed "Flows and Liquidity" weekly publication, when discussing the limits of QE - a topic prominently touched upon by Bridgewater this past week, said the following: How big are the QE capacity constraints facing central banks? One of the arguments put forward by some in explaining the BoJ's shift away from QE to yield targeting is for the BoJ to avoid finding itself in the same position as the ECB is currently: i.e. facing a QE cliff at a not too distant point in the future.   We believe that QE constraints are rather artificial. One of the channels via which QE operates is via bolstering the capacity of debt capital markets. Indeed, this year's big increase in spread product supply coincided with more QE by the ECB and the BoJ relative to the previous year. More bond issuance not only implies more credit creation, helping the economy, but also more QE capacity allowing central banks to purchase more assets in the future.   But QE need not be confined to bond instruments in our mind. By limiting themselves to bonds, central banks are indeed deemed to face quantitative constraints given declining government bond issuance even as spread product issuance has increased. This year's purchases by the ECB, BoJ and the BoE account for 75% of total net bond issuance globally excluding EM local debt. And there you have it: first, a central banker, then a still somewhat prominent (if recently discredited) economist, and now a respected sell-side analyst, have all jumped on the "Fed should buy equities" bandwagon. We point this out just because it increasingly appears that the Fed is launching trial balloons at what its next, emergency policy may be at a time when the US central bank should, according to experts, be getting ready to hike rates. Which is why, something tells us that the market's 59% odds of a December rate hike as of December will be, as usually, dramatically wrong.

30 сентября, 10:52

Некоторые из крупных хедж-фондов выводят активы из Deutsche Bank

Некоторые клиенты Deutsche Bank, среди которых ряд крупных и влиятельных хедж-фондов, выводят активы из банка в связи с сомнениями в стабильности его операций, пишет газета The Wall Street Journal со ссылкой на информированные источники.

29 сентября, 04:45

Janet Yellen On The Fed Buying Stocks: "Maybe In The Future, Down The Line..."

There was an interesting exchange during Janet Yellen's testimony before the House Financial Services Committee on Wednesday morning, when South Carolina Republican Mick Mulvaney asked Yellen if the Fed will openly (as opposed to indirectly via Citadel) buy stocks. Specifically, he said that "there's been some attention in the last few months about the resent decision by the Bank of Japan to start purchasing equities and my question to you is fairly simple. Is the United States Federal Reserve looking at the possibility of adding the purchase of equities to its tool box as it looks at monetary policy?" This was her response: "Well, the Federal Reserve is not permitted to purchase equities. We can only purchase U.S. treasuries and agency securities. I did mention in a speech in Jackson Hole, though, where I discussed longer term issues and difficulties we could have in providing adequate monetary policy. Accommodation may be somewhere in the future, down the line that this is the kind of thing that Congress might consider, but if you were to do so, it's not something that the Federal Reserve is asking for." And there you have the apolitical Fed hinting to Congress all it would to keep the stock market propped up in perpetuity is a small change in the law for Yellen to lift the offer, or as Chuck Schumer would put it, "get to work Mrs; Chairwoman." Also, not asking for yet, because we are certain that there was a time when neither the BOJ nor the SNB imagined they would have to officially intervene in the stock market to keep it propped up. Furthermore, as the WSJ notes, "Yellen’s tentative openness to changing the law suggests Fed officials have been giving a lot of thought to new ways to jolt the economy in an era of low inflation and low interest rates." Alas, in a time when the Reuters writes that "any ECB scheme to buy stocks could total 200 billion euros", to keep hammering the idea that central bank purchases of stocks are just a matter of time, we get the feeling that the spot Yellen envisions as being "somewhere in the future" is not that far off.

Выбор редакции
27 сентября, 22:58

Syrian government launches Aleppo ground attack

Subscribe: http://smarturl.it/reuterssubscribe Syrian troops and allied militias attack the opposition-held sector of Aleppo on several fronts including near its historic citadel -- the biggest ground assault yet in a massive new military campaign. Mana Rabiee reports. More from Syria: http://smarturl.it/SyriaAttack Subscribe: http://smarturl.it/reuterssubscribe Reuters tells the world's stories like no one else. As the largest international multimedia news provider, Reuters provides coverage around the globe and across topics including business, financial, national, and international news. For over 160 years, Reuters has maintained its reputation for speed, accuracy, and impact while providing exclusives, incisive commentary and forward-looking analysis. http://reuters.com/ https://www.facebook.com/Reuters https://plus.google.com/u/0/s/reuters https://twitter.com/Reuters

22 сентября, 06:45

The "Deplorables" - Who We Are And What We Want

Submitted by Brandon Smith via Alt-Market.com, In numerous articles over the past several years I have made observations on a rule of life that I strictly adhere to: that all social conflicts can be boiled down to the reality of two opposing groups — those people who want to control the lives of others, and those people who simply want to be left alone.  You can read more about my philosophy on this in an article I published in 2014 titled 'Why Is Independence So Frightening To Some People?' The mainstream media and establishment institutions focused on propaganda will tell you that there are hundreds or thousands of dangerous cultural enclaves and ideologies out there that you should fear.  They will tell tales of rage and suspicion between the rich and the poor, haves and have-nots, whites and blacks, gays and straights, academics and working class, believers and atheists, Muslims and Christians, Republicans and Democrats, Eastern nations and Western nations, etc.  The establishment relies on these divisions as a rationale for the homogenization of cultures — they argue that if we erase borders, religion and sovereignty while enforcing multiculturalism and wealth redistribution, then these groups will have no reason to fight anymore and a Utopian fever orgy will be our inevitable reward.  Yes, it sounds quite magical. That said, I don’t hold any claims against any of these groups per se, as long as they respect my inherent and individual freedoms.  If they are determined to impose their ideology on me through force, that is another matter entirely. This is the only paradigm that actually matters in the end.  All other paradigms are a means for the powers that be to pit the masses against each other.  When you look at the world in this way, it is easier to let go of all the “sacred cows” and learned biases that blind us to the truth. I don’t affiliate with Republicans, but I am happy to support a Republican that proves he or she has no interest in dictating my principles or my future.  Same with a Democrat. Same with any black or white or brown person. Same with any gay or straight person.  I really don’t care; stay out of my way and I’ll stay out of yours. Get in my way, however, and I will step on you.  If you’re bigger than me, I’ll dislocate your kneecaps and then step on you.  There is no despot so big that they are immune to the heel of a strategically placed boot. This, I would say, is a defining principle behind those of us who make up the so-called “alt-right;” the people Hillary Clinton recently referred to as “the deplorables.” When describing this subculture of “miscreants” I often use the title of the “liberty movement.” We are defined and unified by our desire for a society based on the integral love of freedom and a fervent opposition to collectivism and totalitarianism.  For this, we are called “deplorable.”  But let’s extrapolate on that a little… In our era, certain organizations have adopted a hard-line love affair with collectivism, and most of these groups today are allied with the far Left (socialist) side of the political spectrum.  This includes “neo-conservatives” who have never been conservative and, just like the socialists, have only ever pursued policies of bigger and more intrusive political and cultural bureaucracy.  Therefore, the paradigm of left vs. right now becomes tangible, because it is the left that seeks control, and the true right that wants to be left alone. To clarify even further, people who actually understand the false left/right paradigm only mention it when they are referring to the political class.  At the top of the pyramid and at the top of either major American party, there is no "Left", or "Right", there is only globalism.  However, for average people there is indeed an ideological spectrum.  This would not be such a problem except that at this time, it is people on the far LEFT of that spectrum that are in support of multiculturalism and globalization.  They are the group scrambling for control over everyone else and they are the group with funding and legal support from the elitist establishment.  Social justice lunatics and Black Lives Matter advocates have fashioned themselves as weapons for the elites.  Therefore, in this way, they have made the left/right paradigm real for those at the bottom of the pyramid. It’s interesting to me that the left, once considered the bastion citadel of rebellion against the machine, is now willingly diving head-first into the intestinal apparatus of the system to be mulched for fuel for the very same beast.  It just goes to show you how easily these fraudulent paradigms can change and how easily groups can be co-opted when they are oblivious to their own weaknesses. If you really want to know who we “deplorables” are it’s rather simple — we are the ones who refuse to participate in the operation of the machine.  We are the cogs who refuse to cooperate.  We will not grease the gears.  We will not stoke the furnace.  We will stop the whole damn thing in it’s tracks, because, for the sake of future generations, we must. This is why we are hated by socialists, cultural Marxists and the general inbred animal farm of the progressive zeitgeist.  We suggest that, in fact, not all steps forward are equal to “progress,” and not all progress is moral.  We maintain that what progressives call “progress” is actually classic and archaic barbarism wearing the silky lingerie of of humanitarianism. To assert that some progress is immoral is a sure way to trigger the modern collectivist left.  They just can’t fathom that anyone sane would disagree with the grand schemes of multiculturalism and economic harmonization.  We must be crazy.  We must be violent and aberrant monsters.  We must be filled with hate and racism and misogyny.  We must be “dealt with.” But here’s the deal… The institutions and people so desperate to define the deplorables never actually ask us to define ourselves for the public record.  They don’t WANT to hear what we have to say about ourselves.  They prefer to construct straw men.  It’s much easier to set fire to us that way. Oh sure, they’ll interview us once in a while, but an interview does not constitute an honest record of anything.  Just take a look at Bloomberg’s “interview” with Milo Yiannopoulos entitled The Pretty, Monstrous Face Of The Alt-Right in which they focus more on his salary, shopping habits and flamboyant homosexuality than his actual political or philosophical positions.  And, yet again, they call on the Southern Poverty Law Center, the cultural Marxist propaganda arm of the establishment, to give their take on who Yiannopoulos is.  Welcome to the club, Milo. Even I have been approached in the past by mainstream outlets including the BBC and The Economist for such interviews.  In the case of the BBC, I told them I would be happy to participate as long as I could bring my own video equipment to record the entire exchange.  They agreed, then never called me back.  I just ignored requests from The Economist; they are the rotting left ventricle of the heart of darkness. These people have no intention of letting us speak for ourselves.  They want to use us for ratings and then edit us into oblivion. The media certainly won’t refer to us as “the liberty movement” or as freedom fighters or any other label that might find favor with the general public.  Instead, they call us “populists,” which is a term with a decidedly fascist flavor to it.  The truth is, the rhetoric of elitists in Europe and in the U.S. is that those against globalism and multiculturalism are legitimate fascists.  If average people only understood the totalitarian leanings of your run-of-the-mill globalist they might find this accusation hilariously ironic. Alan Greenspan calls us “crazies” who will undermine the U.S. system.  Which is also ironic when you understand that it was Greenspan’s Federal Reserve that created the artificially low interest rate environment that initiated the derivatives bubble and credit crisis that has sealed America’s fiscal fate eight years later.  Greenspan even admitted back in 2013 that the Fed knew there was a debt bubble and “missed the timing” in dealing with it.  Yet, he blames us for America’s problems. In the past these hucksters ignored us.  We were a burgeoning movement rallying around marginalized figures like Ron Paul back then. It was better for them to pretend we didn’t exist. Now, we seem to be everywhere — busting up the EU with the Brexit referendum, overwhelming Merkel’s political power base in Germany, and pushing Donald Trump into what I have argued since the primaries will be a sure entry into the White House.  Now, all the full attention of the establishment is on us.  Imagine that. So, instead of listening to hypocrites and liars like those listed above, why not go to the source and ask a deplorable what we want.  I’ll be happy to explain our goals in my next article in this series, and set out to identify the movement that seems to have dumbfounded the progressive left and globalist acolytes alike. For now, I want to acknowledge that the rise of the deplorables does not necessarily ensure victory in the face of the elites.  As I have mentioned many times since before the success of the Brexit, it is possible that the elites are trying to give traditional conservative movements enough rope with which to hang ourselves.  That is to say, we are working to wrestle back control of a ship that is already sinking.  They might just step aside as we mutiny because in the end, they don't think it will matter.  Let’s not kid ourselves that this fight will be anything other than long and painful. Economically as well as socially, there is little chance of avoiding serious multiple crises over the course of the next few years.  It seems to me rather convenient that the catalysts for these crises are boiling over at a time of great awakening for the conservative guard and the liberty minded.  I do not think this is a coincidence. This is why I repeatedly remind people that a successful Brexit vote or a Trump presidency might send a message, but they are not solutions.  Do not be surprised if a Trump victory is followed by a global deluge of financial instability — instability that will be blamed on us. The narrative is already being set.  International financiers, central bankers and media personalities are consistently mentioning the great danger of the “populists.”  They say the deplorables are going to destroy the world.  This is nonsense, of course.  The world has already been destroyed by the banking elite and their cronies, but, the average person doesn’t really grasp this.  We have to educate them quickly because we are about to be targeted as scapegoats for one of the greatest engineered fiscal catastrophes of all time. In my next installment I will examine a list of issues that are at the core of "the deplorables" and our shocking ascendance in the sociopolitical sphere.  I will conclude by pointing out that every totalitarian action produces an equal and opposite reaction.  The progressive left and the globalists have become so intoxicated with collectivist power and so abusive in their application of the government authority that they have chiseled from the public, that now, everyone hates them.  Many people WANT to see the deplorables win.  It's not even necessarily about the viability of Trump.  They just want to watch as the pretentious faces of social justice thugs twist in shrieking horror when Trump takes the Oval Office, or as Britain flips the bird to the EU, or as Europe breaks apart over the madness of forced refugee policies. If anyone is to blame for the popular rise of the deplorables, it is the very leftists and globalists who despise us.

Выбор редакции
17 сентября, 22:55

The SEC's Former Top "HFT Expert" Joins HFT Titan Citadel

Last April, we commented on the most blatant (pre) revolving door we had ever seen at the SEC (and there have been many): the departure of the SEC's head HFT investigator, Gregg Berman, who during his tenure at the agency (whose alleged purpose is to keep the "market" fair, efficient and unmanipulated) did everything in his power to draw attention away from HFTs. He did that, for example, by blaming Waddell and Reed for the May 2010 flash crash. This is what Berman, whose full title was the SEC's "Associate Director of the Office of Analytics and Research in the Division of Trading and Markets" said in the final version of the agency's Flash Crash report: At 2:32 p.m., against this backdrop of unusually high volatility and thinning liquidity, a large fundamental trader (a mutual fund complex) [ZH: Waddell and Reed] initiated a sell program to sell a total of 75,000 E-Mini contracts (valued at approximately $4.1 billion) as a hedge to an existing equity position." Several years later, when the HFT lobby made a coordinated push to eliminate human spoofers (which algos were apparently helpless against without regulatory intervention), the SEC changed its story entirely and blamed the flash crash on one solitary trader, Navinder Sarao. By then the SEC had lost all credibility. It had also lost Gregg Berman, who six months after quitting the SEC ended up taking a nondescript job at EY, where he joined the Financial Services Organization (FSO) of Ernst & Young LLP as a Principal focusing on market risk and data analytics. We, for one, were surprised: having expended so much energy to cater to the HFT lobby, we were confident Berman would end up collecting a 7-figure paycheck from one of the world's most prominent high frequency frontrunning parasite firms. As a reminder, this is what we predicted when the creator of Midas, and Eric Hunsader's archnemesis, quit the SEC: Gregg will find a hospitable and well-paid position after spending 6 years defending the well-paying HFTs lobby. In all likelihood after taking a 2-4 month break from the industry, he will pull a Bart Chilton, and will join either HFT powerhouse Virtu, perennial accumulator of former government staffers, Goldman Sachs, or - most likely - the NY Fed's shadow trading desk and the world's most leveraged hedge fund, Citadel itself. Because for every quo there is a (s)quid. In retrospect, Berman's detour into E&Y ended up being just that: an attempt to mask his true career intentions by taking a less than 1 year "sabbatical" from his true calling: getting compensated from the very HFT industry whom he did everything in his power to reward generously during his tenure at the SEC. Well, as it turns out, we were right after all, because lo and behold, as the WSJ first reported, Gregg Berman is now director of market-structure research at the world's most levered hedge fund, HFT powerhouse and massive electronic market-making firm: Citadel, which also happens to be the entity through which the NY Fed intervenes in the market. And just like that all is well again in the corrupt world, in which the market "regulators" pretends to protect the little guy, when in reality all they only cater to the most criminal with the simple hope of landing a job there one day and getting paid in 1 year what they make in 10 at the SEC or any other government agency.

16 сентября, 13:31

Институциональные инвесторы все чаще используют алгоритмы на рынке фьючерсов

Трейдинг становится все более компьютеризированным. Исполнение заявок, стратегии, включающие алгоритмы и количественные методы, в настоящее время составляют огромный пласт финансовых рынков, сообщает издание The Trade Derivatives.

15 сентября, 17:46

On the burkini, Citadel, Colombia, game theory, demography, Milton Friedman, Star Trek: Letters to the editor

UK Only Article:  standard article Issue:  Britain’s one-party state Fly Title:  On the burkini, Citadel, Colombia, game theory, demography, Milton Friedman, Star Trek Print section What is a “burkini”? A “burkini” is not “a cross between a burqa and a swimsuit” (“Ill-suited”, September 3rd). Although the word is a portmanteau of “burqa” and “bikini”, the item itself is not. It is simply a swimsuit, albeit a modest one, and has nothing to do with a burqa. Rather, it is associated with the hijab. A woman who wears the hijab covers her hair and body in public, and so would not show her arms, legs and chest on the beach. Obviously, a substantial portion of Muslim women wear the hijab, whereas only a tiny minority wear a burqa or cover their faces.  “Burkini” is English and does not come from Arabic. This kind of clothing is referred to natively as maayo muhtashim (modest swimsuit) or malaabis al-bahr al-muhtashim (modest beach clothes). The term “burkini” has started to appear also in Arabic news sources, but the spelling and the fact that it is often written in quotes mark it clearly as a borrowing from English. KAREN ...

Выбор редакции
13 сентября, 17:21

Текст: Компания IEX готовит революцию в торговле золотом с помощью цепочки блоков транзакций ( Zero Hedge )

Источник 07.09.2016 Компания IEX Group шокировала участников рынка 19 августа, став первой официальной биржей, которая предложила механизм обхода хищнических алгоритмов высокочастотной торговли, что, в свою очередь, вызвало громкие протесты традиционных игроков, таких как биржи Nasdaq и Citadel. IEX стремится произвести революцию на рынке золота с годовым оборотом в $5 трлн с помощью новой биржи, созданной ее филиалом TradeWind Markets, сообщает агентство Рейтер.   Будущая золотая биржа станет захватывающим новым шагом в индустрии,...

Выбор редакции
08 сентября, 10:18

На рынке золота грядет блокчейн-революция

IEX Group 19 августа потрясла участников рынка, став первой официальной биржей, объявившей о введении механизма, который позволит обходить грабительские алгоритмы высокочастотной торговли. Теперь, игнорируя громкие протесты со стороны таких ветеранов как Nasdaq и Citadel, намерена совершить революцию  на рынке золота с оборотом более 5 трлн долларов в год. Для этой … читать далее…

Выбор редакции
07 сентября, 21:57

IEX Set To Revolutionize Gold Trading With Blockchain-Based Exchange

The IEX Group, which shocked market participants on August 19 when it became the first official exchange to offer a mechanism to bypass HFT predatory algos and frontrunning against all odds, including vocal complaints by established players like Nasdaq and Citadel, now seeks to revolutionize the more than $5 trillion-a-year gold market with a new exchange being created by its spinoff TradeWind Markets, Reuters reports. The proposed gold exchange would be a fascinating departure from convention, as it would use elements of blockchain technology to improve transparency and the clearing and settling of trades, an aspect missing in legacy offerings, said Matt Harris, a managing director at Bain Capital Ventures. Bain has an investment in IEX. Blockchain is a tamper-proof shared ledger that can automatically process and settle transactions using computer algorithms. The new gold exchange is said to leverage the technology used by IEX for its new equities exchange, The Investors' Exchange, which launched last month after operating for more than two years as a dark pool. TradeWind plans to utilize the distributed settlement system in blockchain to eliminate the need for third party verification by giving participants an up-to-the-minute record of all transactions. It was unclear if in addition to more trade transparency, the exchange would offer the same anti-HFT benefits as its famous 350 microsecond speed bump provides when trading equities. According to Reuters, TradeWind Markets began as an internal project of IEX and was spun off as a separate firm earlier this year. In June, the startup raised $9 million, according to a regulatory filing with the U.S. Securities and Exchange Commission. Reuters adds that the funding came from IEX and Sprott, a Canada-based investment firm that manages physical bullion funds. One of the recurring laments about the existing form of the gold market is that it lacks transparency, which also makes the gold market ripe for change, said Harris, who is on TradeWind's board. "It's too slow, it's opaque as to who owns what and when along the way, and there's lots of room for error that requires manual reconciliation," Harris said of the gold market. "A system that was instantly self-reconciling and 100 percent transparent would solve a lot of problems." TradeWind is lining up more equity investment partners and strategic and commercial partners for the venture, the launch of which is still months away, said the source. The firm's CEO Brad Katsuyama also sits on TradeWind's board of directors, as do IEX Chief Technology Officer Rob Park and Sprott Chief Executive Peter Grosskopf. IEX may not be the first one to market with at blockchain-based gold exchange however: Belgium-based clearing and settlement firm Euroclear said in June it was working with blockchain services provider itBit to develop a settlement system for gold using blockchain.

06 сентября, 20:58

"No Reason" Why ECB Shouldn't Buy Stocks: Peterson Institute

Last week, we highlighted a troubling Reuters article, which we classified as a quiet "trial balloon" to set the stage for an ECB launch of stock purchases. As Reuters put it, the ECB may soon be forced to follow the Bank of Japan's example and buy equities as part of any expanded stimulus programme. Reuters recapped the familiar problem: "The European Central Bank could run out of eligible bonds for its 1.7 trillion euro bond-buying scheme, meaning alternative options are on the table should it decide to loosen policy further to lift growth and inflation across the bloc. Analysts say these could include large-scale share buying, a policy that the BOJ has already adopted after it started purchasing equity exchange traded funds (ETFs) for its own quantitative easing scheme six years ago." Overnight, the WSJ doubled down on this "warning", writing that central banks have become some of the biggest investors in bond markets. Now some in the financial markets think stocks should benefit more from their largess. The amusing spin came when the WSJ cited "some economists" who say the European Central Bank, which meets Thursday to decide if it should expand its current bond-buying program, should invest in equities. The reason - one we have discussed for years, and which Reuters touched upon last week - "It is running out of bonds to buy." While certainly redundant, the WSJ observes that "a move by the ECB into equities would have big implications for Europe’s stock markets." Well yeah: with equities becoming risk-free, it would mean prompt all time highs as a completely price-indescriminate buyer would now be on the verge of nationalizing yet another market, and crushing all the fundamental signals that link corporate health, the economy, or underlying industry dynamics with risk asset prices. The prospect of billions of euros flowing into equities could prop up prices, much as ECB bond purchases have done for debt securities. The signaling effect from the ECB’s unlimited money-printing power may also limit downturns in equities.   Stock purchases don’t appear to be on the near-term agenda. But ECB officials haven’t ruled them out, and the idea could gain steam if they continue to undershoot their 2% inflation target. As we first explained in early 2015, the ECB would merely join such other central banks as the BOJ and SNB in openly monetizing equities (as opposed to the hidden stock purchases by entities such as the NY Fed which does so however using Citadel as a momentum-igniting intermediary when the US stock market is in danger of tumbling). The Czech central bank has been buying stocks since 2008. Israel’s central bank also holds stocks.  In fact, the SNB has been buying stocks for over a decade "to diversify" its massive foreign-currency holdings. They now account for 20% of reserves, the resultof an unprecedented buying spree in the second quarter as first reported on this site:   Another big stockholder is the Bank of Japan. It had ¥10.182 trillion (about $98 billion) in individual stocks and exchange-traded funds as of Aug. 20, in terms of book value. It roughly doubled the pace of its annual ETF purchases to ¥6 trillion on July 29, 2016. The SNB holds only foreign stocks, because buying overseas assets is supposed to weaken the strong franc. To avoid stock-picking, it mirrors broad stock indexes. The bank employs external experts to advise which companies should be excluded due to red flags such as arms dealing or environmental damage. The Japanese buy domestic equities as part of a more traditional stimulus program. And while the ECB may not go ahead and announce equity monetization imminently, it may have no choice: "The obvious reason for the ECB to buy equities is they have almost run out of German bonds to buy,” said Stefan Gerlach, chief economist at BSI Bank and a former deputy governor of Ireland’s central bank. "The basic idea is that the central bank can put essentially anything on its balance sheet and there is no reason to be straight-laced about this.” The good news is that once the ECB starts buying up European stocks, it would have a far bigger selection. "Equities offer a deep pool of assets. The market capitalization of listed eurozone companies was $6.1 trillion at the end of 2015, according to World Bank data." Meanwhile the push is on, and the think tanks are already on board. First up, the Peterson Institute: “I don’t see a reason not to do this,” said Joseph Gagnon, senior fellow at the Peterson Institute for International Economics. “It isn’t obvious to me why a central bank wouldn’t always want a diversified portfolio, including equities.” That a member of a think tank just said that it is not obvious to him why a central bank should not buy equities - at a time when even central bankers lament that collapse in fundamentals and market logic due to central bank intervention - is so idiotic we won't even comment on it. So here is what else he said: Mr. Gagnon suggests a more aggressive approach, pointing to the success of Hong Kong’s central bank in supporting the economy during the late 1990s Asian financial crisis by buying around 10% of the Hang Seng Index. That move sparked a 40% rally in stock prices within two months, and the index more than doubled over the next 18 months. Which, of course, Mr. Gagnon sees no problem with. Not everyone has completely lost it: "some economists also worry that by purchasing only public and private bonds, central banks may fuel bubbles in rate-sensitive sectors such as housing." ECB stock purchases “would be justified: European equities are undervalued, while there is a bubble—that the ECB continues to inflate—in bonds,” said Patrick Artus, chief economist at French investment bank Natixis, in a research note. Just ignore the bubble in equities, please. * * * With this full court press already in play, it is likely only a matter of time before Draghi does announce an expansion to the ECB's QE, one which will see the central bank a buyer of last resort in government and corporate bonds, as well as equities, thereby distorting all three key capital markets. There is some hope that the only adult left in the room, Germany, will put a stop to this insanity before it is too late: "it would also raise the prospect of having Germany’s Bundesbank taking on the risk of Portuguese or Greek stocks. Germans are already deeply wary of the ECB’s bond buys and negative-rate policy." Sadly, just as the Bundesbank rolled over in its opposition to both forms of bond purchases, so it will ultimately cave when it comes to the monetization of stocks. Finally, while this is good news for stock bulls, as equities will have yet another artificial support, the question is what happens if and when the time comes to sell: after all, the only reason to buy stocks when central banks are in the market is to frontrun them. Which does miracles to PE multiples on the way up, however once the selling begins, especially in an illiquid market where the central bank itself has soaked up the bulk of the liquidity, it would mean an immediately bidless market as everyone rushes to the other side of the boat. Conveniently, that particular scenario is not one any current traders will have to worry about: while central bankers are notoriously experienced when it comes to buying, their selling skills have been and remain "optional."

15 июня 2015, 11:57

Scofield: Бильдербергский клуб определил зоны интересов ВПК

В четверг открылась очередная ежегодная встреча членов Бильдербергского клуба. Среди 133 гостей, собравшихся на этой неделе в австрийском городке Тельфс-Бюхен, 21 политик. В их числе – министр финансов Великобритании Джордж Осборн...

16 апреля 2015, 17:05

Бернанке будет работать с торговыми роботами

Бывший глава Федеральной резервной системы США (ФРС) Бен Бернанке согласился стать старшим советником хедж-фонда Citadel Investment Group. Об этом сегодня сообщили крупнейшие СМИ.