The Goldman VaR Exemption Question Escalates
Submitted by Tyler Durden on 07/27/2009 - 13:24It seems only yesterday that Zero Hedge had some questions in regard to Goldman's VaR Fed exemption. No response was received from 85 Broad. Today it appears several Congressmen, lead by Alan Grayson, are willing to drive a sharp stick pretty deep into the hornets' nest, by sending a letter directly to Wall Street Don Ben Bernanke, demanding an explanation exactly to the question of Goldman's VaR Exemption.
Do You See What Happens Larry To Market Neutral Funds When SLP Dominates Liquidity Provision?
Submitted by Tyler Durden on 07/27/2009 - 13:08Not much... In fact a mere 3.11% return YTD, below the 9.4% HFN aggregate average and the 4.7% return YTD. Of course, this excludes Goldman's $100MM trading days YTD. If one added those, the YTD MN return might easily be pushing 50%.
Schumer Letter To Mary Shapiro
Submitted by Tyler Durden on 07/27/2009 - 12:20"I write out of concern that the integrity of our capital markets is being compromised by the ability of some insiders to view order information before it is available to the entire market, and use electronic trading strategies to profit from that information at the expense of other investors"
Paul Tudor Jones Exposed
Submitted by Tyler Durden on 07/27/2009 - 09:03The mythical "TRADER - The Documentary" is finally available on You Tube. Relevant "full frontal" insights on the making of a hedge fund legend, and a paleolithic market dominated by monochrome PCs (what, no Bloomberg?), running to the municipal library for that 10-K, and no Flash orders frontrunning every trade.
Goldman's Ed Canaday On The Requirements For High Frequency Trading Oversight
Submitted by Tyler Durden on 07/27/2009 - 08:53Damage control... Or is Goldman a little worried what Direct Edge may disclose.
From the appended Schumer piece on Bloomberg:
“Goldman Sachs believes high-frequency trading should have an accompanying obligation to provide liquidity, and be subject to appropriate regulatory oversight,” Canaday said.
Ed, we have been giving you the chance to provide your side of the story for months. Please take us up on the offer.
The ETF Gloves Are Off
Submitted by Tyler Durden on 07/27/2009 - 08:19Bearish bets made impossible, compliments of UBS. Either that, or UBS' recently upgraded (with i7 chips of course) computers just cant handle the basis calculations. Either way, is something very fried with ETFs going on behind the scenes?
IMPORTANT NOTICE: Inverse, Leveraged and Inverse-Leveraged Exchange Traded Funds are no longer available for new or additional purchases at UBS
Effective July 27, 2009, UBS is suspending the offering of Inverse, Leveraged and Inverse-Leveraged Exchange Traded Funds (ETFs). You will no longer be able to make new or additional purchases and will only be able to liquidate current positions through UBS at this time. Any attempt to execute a trade of such ETFs will be rejected.
Please contact your Financial Advisor with questions.
Daily Highlights: 7.27.09
Submitted by Tyler Durden on 07/27/2009 - 07:53- Administration looking for Chinese help to narrow trade gap and boost US jobs.
- Advertisers are getting cheaper rates than a year ago on television commercials.
- Aetna 2Q profit dropped to $346.6M due to greater commercial expenses and cuts full year forecast.
- Asian markets were higher Monday on hopes for further earnings recovery, Nikkei hits 10,000 mark.
- China's new small-company stock exchange gets 108 IPO applicants on 1st day as launch nears.
- China shares up for 4th day on high liquidity-driven sentiment, led by metals and airlines.
- Euro rises to $1.4263 in European morning trade as investors continue to leave dollar.
Frontrunning: July 27
Submitted by Tyler Durden on 07/27/2009 - 07:47- Tenacious G - Is Goldman Sachs evil? Or really good? (NY Mag)
- Bernanke feared a second great depression; he may still very well get it (WSJ)
- Europe braced for rising credit card defaults (FT)
- Loans by U.S. banks shrink as fear lingers (WSJ)
- Credit crunch part deux (Merk Mutual Funds)
The End Of The End Of The Recession
Submitted by Tyler Durden on 07/26/2009 - 21:24Zero Hedge, in collaboration with David Rosenberg, Chief Economist & Strategist, Gluskin Sheff + Associates, Inc., is pleased to release the attached analysis "The End Of The End Of The Recession"
NYSE Much Better Than CDOs / Credit Default Swaps. No, Seriously.
Submitted by Marla Singer on 07/26/2009 - 21:15The blind leading the blind.
Guest Post: 30 Year Review Ahead of Short Term Auctions, Q2 adv-GDP and Aug 7 NFP
Submitted by Tyler Durden on 07/26/2009 - 12:37Market forecast from John Bougearel of Structural Logic
Weekend Reading
Submitted by Tyler Durden on 07/26/2009 - 12:21- Must read: Fast-on-the-draw trades need spot of marshalling (FT, h/t Joe)
- Roubini Op-Ed on Bernanke: The Great Preventer (NYT)
- Lennar signals fleeting buildling rally as buyers flee (Bloomberg)
- JP Morgan to raise banker salaries (FT)
- The man spreading false rumors about Harman and Textron takeovers (that fooled fast-money's Najarian) found dead in suicide (Bloomberg)
- Chinese steel executive beaten to death, (FT)
Washington & China to Meet on Trade, Economic Recovery & the Zen of Cultural Learnings of America for Make Benefit Glorious Nation of China
Submitted by Travis on 07/26/2009 - 08:45Monday the Obama administration and China begin talks- namely on currency tensions, the US budget deficit and the massively huge trade gap with China.
China, in addition to the hundreds of billions of low-cost, high-labor manufactured goods they’ve come to be known for; are importing 150 Chinese economic officials, in one of the largest visits ever to the United States.
JPM's Carl Carrie On Algorithmic Trading
Submitted by Tyler Durden on 07/25/2009 - 23:55"if you look at what's happened recently in the credit markets, it hasn't opened
our eyes to liquidity risk, but liquidity cost and liquidity risk is perhaps a different
animal. It's not just about price volatility. It's about volume volatility. It's about timing of
that volume volatility. It may be there today, and when you want to get out of your
position, it may not be there tomorrow. And how do you reflect that into your own
trading and into, not just your alpha generation, but on the risk side of the alpha
generation? Most risk models don't really take into consideration the kinds of anomalies
that we may see on a yearly basis."
The Great Reset
Submitted by Tyler Durden on 07/25/2009 - 19:42A very informative series of presentations by Warren Pollock. As Warren says, a comprehensive political, economic and social forecast.
