How to Keep Your Financial Head Above Water
&Nbsp; ) surged more than 400 points (3.5%) by midday Wednesday, after a spate of monumental moves by central bankers and finance ministers around the world signaled some coordinated resolve to address the risks associated with Europe's very dangerous financial crisis . The central banks dominated headlines with an orchestrated move to reduce the interest rate charged on currency swaps conducted under a pre-existing set of swap agreements.The measure -- involving the central banks of Canada, England, Europe, Japan, Switzerland, and the United States -- seeks to "ease strains" in financial markets by establishing mechanisms to inject liquidity into troubled portions of the financial system as needed (and in whichever currency required). After watching helplessly as Europe lollygagged with makeshift reactive measures that seemed several steps behind emerging-market pressures, the appearance of a cooperative and proactive measure seemed to reassure embattled equity investors.
Think of this measure as an emergency triage center for the front lines of the central banks' war on systemic deleveraging and global debt contagion. It could prove effective as a temporary means of dressing wounds and stabilizing patients, but it will do precisely nothing to prevent the onslaught from continuing. That's because debt is the true aggressor in this battle, and despite half-hearted lip service that is paid to the notion of austerity, the overarching policy response to the global debt crisis continues to involve ever-increasing scales of debt-funded intervention. As a matter of fact, the growing commitment of sovereign debt to mop up an unrelenting flood of toxic paper came into full view this week in another major development out of Europe this week.
Europe calls the IMF for reinforcement
European finance ministers met this week to discuss their next move, with many observers gunning for an aggressive leveraging of the European bailout fund (the EFSF) to some USD$1.3 trillion. Instead, the latest indications suggest that the fund will be boosted to a capacity of between $670 billion and $940 billion. Compared with the rapidly escalating scale of the sovereign funding shortfall across multiple European nations, that figure will surely not suffice, and this week the ministers conceded as much. As the European nations fail to raise adequate debt to stem the contagion, they have set their sights on the International Monetary Fund (IMF) as the next bastion of defense. Dutch finance minister Jan Kees de Jager stated clearly: "It's very important that the IMF globally will increase its resources either by raising its capital or by bilateral loans so that it can lend more money to eurozone countries in need.
Priority Of Orders Nyse Rule - News
I maintain a particularly bullish long-term demand outlook for copper and metallurgical coal, so Teck Resources (NYSE: TCK ) -- which mines them both in droves -- looks like a nice play to me. But as deep as the recent correction in copper equities
In other words, the NYSE does not follow a time-priority model for order handling, as most electronic marts do. Instead, the NYSE has parity and a priority rule. That means the entire order in gets priority and not one trade, even if the market moves
“Firms that allow the use of any title or designation that conveys an expertise in senior investments or retirement planning where such expertise does not exist may violate FINRA Rule 2010, NASD Rule 2210, NYSE Rule 472, and possibly the anti-fraud
Horton continued, “Throughout the restructuring process, as always, our customers remain our top priority and they can continue to depend on us for the safe, reliable travel and high quality service they know and expect from us.
In a joint venture with Newmont Ventures (NYSE:NEM), a wholly owned subsidiary of Newmont Mining, Eurasian Minerals currently has six projects across the country. Granted, political risk is not unusual for most precious metal mines, which often are
Parity and Point of Sale Positioning Keeps Exchnage Floor Brokers ...
Jonathan Corpina, senior managing partner at Meridian Equity Partners, spoke to Traders Magazine about how floor brokers are still relevant in a market increasingly dominated by algorithms, electronic indications of interest and pinging.
"We are the only liquidity center that has the use of parity, and as brokers, it's a tremendous advantage we have over other venues," Corpina said.
Floor traders on the NYSE traded huge volume in Citi every day before its reverse split on May 9. That was because they benefited from parity, which gave the clients of floor brokers a distinct advantage.
In other words, the NYSE does not follow a time-priority model for order handling, as most electronic marts do. Instead, the NYSE has parity and a priority rule. That means the entire order in gets priority and not one trade, even if the market moves away and comes back to that order. . Under a time-priority model, competition is stiff because a trader must be very fast to get to the head of the line to capture order flow.
At the NYSE, whoever sets the best price first gets filled first. But that fill may be for only 100 shares, and at the New York, time priority is good for only one trade. If the first man is bidding for 1,000 shares and a 100-share sell order comes in, that's all his priority gets him. Any subsequent incoming sell orders are shared with the pack.
"Thanks to the use of parity, we have higher execution rates than off the floor, higher provide rates of liquidity than outside the building," Corpina said.
That's why his firm built parity into all of its algorithms. Thus whether he executes a trade high-or-low touch, parity is utilized.
As for the next parity trade, Corpina said since the Citi reverse split, no other single stock has surfaced making such a trade profitable. However, the search continues.
"People are looking to find the next Citi - but so far, nothing," Corpina said. "Rather, some parity trades have emerged in a bunch of smaller little stocks or baskets of stocks." He cited Bank of America and Sprint as examples.