Tagged: Liquidity

We’re late this week due to celebrations around the anniversary of the rebellion from the Crown. We played croquet, appropriately and cheekily British we thought (no offense to our good friends and former overlords across the pond). Croquet has actual rules we learned.

Sunday, Karen and I loaded the bikes and set out with good friend Jeffrey to conquer the passage between two of Colorado’s tall “fourteeners” named Princeton and Harvard. We rode from the Arkansas Valley floor at 8,000 feet up Cottonwood Pass (which sounds like “cotton whupass”) from Buena Vista to the summit at 12,126 feet and a stunning view of the fruited plain.

Choosing a route from point A to point B had me thinking about stock trades (you do this long enough, that’ll happen to you too). Stock trades must have routes. Sometimes it happens automatically. Whether orders for shares in your stock meet their matches internally at Barclays or by dint of timing, routing, pricing and chance at Susquehanna’s dark pool, RiverCross, often is a matter of routing. Even online brokers afford ways to route trades now. (more…)

The Ides of March today carries an air of foreboding that dates to Julius Caesar’s demise in 44 BC. Before Brutus colored the day red, Romans did on the Ides what any other urbane culture might: They feted Mars, god of war. It feels lately like Mars has been trudging along the tectonic plates.

We still have $200 here for the first person to correctly answer last week’s two critical IR questions: Where do your shares trade? Which brokers trade them?

Speaking of the Issuer Data Initiative: Thank you, NIRI CEO Jeff Morgan, for sliding it across your desk today and out via the weekly NIRI email (note: Register for NIRI National by Friday for the early bird discount). Public companies, please commit your support so every IRO will have answers to the questions above.

Reading Dick Johnson’s noteworthy blog about Warren Buffett’s view of IR prompted a way to show why good issuer data matters. Berkshire Hathaway Class A shares (BRK.A) trade about 500 shares daily, over about the same number of trades per day. On rare occasions, a trade occurs off the NYSE, but most times if Mr. Buffett wants to know which brokers executed trades, that information is available because the trades occurred at his listing exchange. (more…)

The Trouble with Liquidity

We can’t compete with beat-by-beat election updates, so we’ll keep it short and sweet.

Speaking of sweet, we came back last night from six days in the desert trinity—Moab, Sedona, Santa Fe. Hard to beat this time of year!

You heard the one about two guys getting robbed? They’re walking down the street, a mugger stops them and demands their wallets. As they’re complying, one reaches in his wallet before handing it over and says to the other, “Here’s that $20 I owe you.”

It may be like that with the obsession over liquidity in the trading markets. (more…)

The lawyers doing the writing at the SEC are good. The 104-page novella the Commission released last week with the Commodity Futures Trading Commission gallops readers spritely to an inconclusive denouement.

No offense intended. For anybody versed in trading markets, the report is logical and easy to follow. We agree with the description of underlying trading activity, even so far as the report’s conclusion that real buyers and sellers are about 10% of the market. There are charts that look somewhat like our models of market structure, illustrating trading share by market center (we do it by behavior). (more…)