As we move into the heat of the summer, developments in China’s currency market continue to leave traders wondering about the eventual effects of the depegging of the yuan in June. Skepticism is the order of the day, and even a People’s Republic of China consultation report by the International Monetary Fund has discretely expressed doubts about how freely the [...]
The United States survived an early crucial test of its new centralized authority, and Constitution, when nearly 13,000 troops were called in to quell rioting farmers in the “Whiskey Rebellion” of western Pennsylvania, this week in August 1794. Unrest among farmers began in response to a 1791 federal excise tax devised by Secretary of the [...]
Growth Capital Management Principal Robert Milhailovich Sr. told clients he had never made a losing trade, according to a Commodity Futures Trading Commission lawsuit filed in a U.S. District Court in Texas. He did not, however, mention the fact that he was on supervised release from a 27-month prison sentence for a felony mail fraud conviction, [...]
While regulators continue to eye algorithmic trading as at least one factor in the May 6 Flash Crash, traders and programmers continue to push the limits of mathematical trading models and platforms. Here are some recent developments: Financial Times/Alphaville: HFT and ETFs are among the players in a drama of distorted valuations and mob-ruled markets. [...]
While the effects of the credit crisis were felt most immediately by mortgage and corporate borrowers, currency trading volume also shrank last year as a result of an overall liquidity shortfall. But currency volume is now on the move again, and it’s actually benefiting from some of the global mini-crises that have battered investors in [...]
A capital gains tax loophole involving stock options, closed by the Internal Revenue Service four years ago, is coming back to haunt wealthy executives who are being ordered to pay tens of millions of dollars in back taxes. The tactic, called a Prepaid Variable Forward Contract (PVFC), involved executives lending a variable number of shares to a bank for [...]
Most seasoned floor traders would agree that, if you listen closely, you’re not likely to go about 20 minutes in an average trading pit without overhearing each of the late George Carlin’s “Seven Words You Can Never Say on Television” from nearby traders. The four-letter words that could easily be heard on the floors could [...]
WG Trading Co. Principal Paul Greenwood pleaded guilty in New York to criminal charges of conspiracy and securities fraud. The FBI said Greenwood is now cooperating with federal authorities in legal action against his business partner Stephen Walsh, who has pleaded not guilty to the same charges. Walsh also claims in court documents that the government violated his Constitutional [...]
While commodity pool participants were losing almost $1 million in trades, Joseph A. Dawson, owner of Dawson Trading, was allegedly investing their funds into his own swimming pool, according to a complaint by the U.S. Commodity Futures Trading Commission. The complaint, filed July 20 by the CFTC in the U.S. District Court for the Northern District of Illinois, alleges [...]
Back in the 1990s, Nasdaq created the Small Order Execution System (SOES) to help the little guy get market makers’ best bid and offer prices. The system was supposed to be off-limits to institutional traders, and SOES traders could work no more than a half day from their SOES set up. But it wasn’t long [...]
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