Market Structure Insights

February 17, 2016

Volumes are big but trades are small as markets pitch and buck.  On this restless sea, is there a message in a bottle? That would seem poetic, were literature a help to your CFO in a stock market seeming the same hot mess as Justin...

February 10, 2016

“Other than that, everything’s okay.” My friend Gary, a smart guy with an MBA from the University of Chicago, uses that line to herald dire situations. It’s from the old UK sitcom starring John Cleese, Fawlty Towers. In one episode, Cleese the restaurateur receives a...

February 3, 2016

The X-Files are back on TV so the pursuit of paranormal activity can resume. Thank goodness, because the market appears to be paranormal (X-Files theme in background). Volatility signals behavioral-change, the meaning of which lies in patterns. Sounds like something Fox Mulder would utter but...

January 27, 2016

The 1,200 NYSE stocks supported by Barclays were the last redoubt of the old market-making guard. Yesterday, New York City-based Global Trading Systems (GTS) said it will buy the Designated Market Maker (DMM) unit from Barclays at the NYSE. GTS joins KCG Holdings, IMC Financial...

January 20, 2016

You’ve heard the saying that’s it all in your perspective. It applies to volatility. Volatility is up 150% since the post-financial-crisis nadir of 10.32 for VIX Volatility in mid-2014. The “Fear Index” closed yesterday over 26, the highest since August 2015 when it topped 28...

January 13, 2016

There’s no denying the connection between tulips and derivatives in 1636. The Dutch Tulip Mania is often cited as the archetype for asset bubbles and the madness of crowds. It might better serve to inform our understanding of derivatives risk. In 1636, according to some...

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