"THE MARKET... consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Alexander Elder


Friday, July 31, 2009

A Flash in the Dark


In defence of "seemingly scandalous behavior...",
the separate issue of front running
will get us anyway???

see: the dark order
see also: WSJ

Friday, July 17, 2009

Retail Traders BEWARE!


"...order messages are being broadcast at prices that, effectively, lock protected quotes. This creates an elite tier of traders with access to better-priced orders than those receiving public quotes through the securities information processors, giving flash recipients an information advantage, he said."

see: "Flash Point" and "In-equities"

see also:
Manipulation and Summer Reading and Front-Running

Tuesday, July 14, 2009

Sunday, July 12, 2009

Kiting with the GDP


"If such a view of economic growth is taken seriously, then the logic of the measure would suggest that a good way to achieve economic growth would be to destroy infrastructure such as factories, roads, bridges, houses etc."
see: Dangerous Fallacy

Wednesday, July 8, 2009

Tuesday, July 7, 2009

Wednesday, July 1, 2009

Missing Gold from Royal Canadian Mint

"...not an accounting error"
see: Bloomberg
see: Gold Prices
see also: Onstage in the House

Monk of the Month


Your comments,
tips and prognostications.

(Click on image to discover parable)
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What is a Bucket Shop?

"Bucket Shop is a specifically defined term under the criminal law of many states in the United States which make it a crime to operate a bucket shop. [2] Typically the criminal law definition refers to an operation in which the customer is sold what is supposed to be a derivative interest in a security or commodity future, but there is no transaction made on any exchange. The transaction goes 'in the bucket' and is never executed. Without an actual underlying transaction, the customer is betting against the bucket shop operator, not participating in the market."
see: Wikipedia

The SEC believes that "internalization" is somehow different, and this affects ALL of your online trading, no matter what you are trading. Trades that are executed outside of the exchange, never reaching the main market, effectively hide data from technical analysis, and skew pricing.
see: Not a bucket?


"... internalization hurts retail customers and market quality"

see: EconPapers

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