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Here Are The Most Actively Traded Names In Goldman's Dark Pool (Or Why Is The Big Money Fascinated With Italy?)

Tyler Durden's picture




 

Courtesy of recent disclosures, the common man (as in anyone who does not pay millions in kickbacks, er, soft dollar fees to GS) can now observe what is being traded on Goldman's Dark Pool, better known as Sigma X. Why is this important? Because as Themis Trading presented last week, only 30% of all trading occurs on open exchange venues, meaning the bulk of actual shares change ownership behind the scenes, in places such as Sigma X, Chi X, and the dark pools of Credit Suisse, Citi, and various other banks, not to mention numerous other secondary ATS, where very little if any of the daily trading detail is released for general observation. This means that while HFT algos drive up the volume of numerous top 10 stocks merely for the sake of collecting rebates, the real action is in the most actively traded dark pool names, where the big boys are actively trading risk, where HFTs are non-existent, and the companies that represent the top 5 is what investors, speculators, and vacuum tubes should be focusing on. Not surprisingly, today's most active names are Banca Monte dei Paschi di Siena, Unicredit and Intesa Sanpaolo. Translation: someone is actively positioning for serious action in Italy shortly.

 

 

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Mon, 06/27/2011 - 13:46 | 1405924 Cassandra Syndrome
Cassandra Syndrome's picture

Greaseball Meltdown Bitchez

Mon, 06/27/2011 - 15:00 | 1406222 66Sexy
66Sexy's picture

we've been shown the table, but the options are still: red or black.

 

Mon, 06/27/2011 - 13:49 | 1405936 slaughterer
slaughterer's picture

If Sigma X has three Italian banks in its sights, then the next logical question is: when will Reuters drop the bad news about these banks?

Mon, 06/27/2011 - 16:22 | 1406448 rsi1
rsi1's picture

300-400k shares? who cares about that? wethere it is in Sigma X or Squid X, it is nothing, Unicredit moves +300m shares /day on the milan exchange! That is pocket change as an amount and relative volume, so irrelevant.

Mon, 06/27/2011 - 17:53 | 1406643 ZeroPower
ZeroPower's picture

Absolutely right. And lets not forget, DPs are (mainly) for institutional investors to have access to other big buyers/sellers that want to off-load a large block of shares in a single go instead of going on the market and getting it split up (and potentially moving the price if the stock is thin) in those fucking 100-share HFT increments.

So if anything, its quite ironic touting the whole 'BAN HFT!; BAN DARK POOLS!' mantra as they dont necessarily align with each other. I hope this is clear..

Mon, 06/27/2011 - 13:50 | 1405938 DoChenRollingBearing
DoChenRollingBearing's picture

The Bearing is interested in Europe, but I do not see whether this post is bullish or bearish on Italy.

I have heard that Italy is indeed weak.  We have friends there...  And they talk pessimistically.

I would really like your comments...

Mon, 06/27/2011 - 13:58 | 1405957 Arius
Arius's picture

i think anything can be spinned as bullish ... right ?

as for Italy, weak or strong .... if i am correct Italy is the second "I" as for PIIGS .... just follow the script ... very simple, give it time and everything will play out accordingly...

 

Mon, 06/27/2011 - 15:29 | 1406318 Ivanof
Ivanof's picture

Banca MPS is under a capital increase ... and there are rumors that MPS is going to be "merged" with other bigger banks (with premium....)

I live here in Italy and I don't think we are the second "i" of the PIGS... as our debt is under control (low deficit compared to ALL the others... except Germany) but mostly we still have huge personal saving and a duration of our debt of 7.1 YEARS compared with 4.4 of the USA.

 

Mon, 06/27/2011 - 15:58 | 1406393 TwelfthVulture
TwelfthVulture's picture

PIIGS: Portugal, Ireland, Italy, Greece, Spain.  Italy is either the 1st or the 2nd "I".

Mon, 06/27/2011 - 18:26 | 1406735 NotApplicable
NotApplicable's picture

I'd guess that "huge personal savings" is what will make destroying Italy even more profitable for the banksters, than say, just burdening the population with sovereign debt. It may mean a little less austerity, but you'll have higher taxes instead.

So, either your wealth or your future labor will be targeted for repayment. There will be no escape.

Mon, 06/27/2011 - 13:50 | 1405940 slaughterer
slaughterer's picture

Otherwise put: Anybody thinking Spain is next on the hit list just failed the Sigma X test.

Mon, 06/27/2011 - 13:51 | 1405943 Franken_Stein
Franken_Stein's picture

 

Thanks Tyler and team !

You rock da house !

You da man !

 

Mon, 06/27/2011 - 13:56 | 1405947 Going Loco
Going Loco's picture

Royal Bank of Scotland down 3.66%

Mon, 06/27/2011 - 13:55 | 1405956 Xavier Doe
Xavier Doe's picture

"Translation: someone is actively positioning for serious action in Italy shortly."

Er, "up" action or "down" action?

Mon, 06/27/2011 - 14:06 | 1406001 Voodoo-economist
Voodoo-economist's picture

both, depends on the side

Mon, 06/27/2011 - 14:12 | 1406010 d00daa
d00daa's picture

long straddle ftw

Mon, 06/27/2011 - 13:57 | 1405962 Boston
Boston's picture

Translation: someone is actively positioning for serious action in Italy shortly.

And judging by the Italian 10-year, which is about to hit a three year high, the "action" is not going to be pretty.

 

Mon, 06/27/2011 - 14:01 | 1405967 slaughterer
slaughterer's picture

But then again, the Squid does use Sigma X  sometimes as a high-power head-fake instrument when it is desperate.

Mon, 06/27/2011 - 13:59 | 1405972 Thisson
Thisson's picture

This seems relatively simple: Italy is a visible domino that is least "priced in" to the market so far (in contrast to, say, Greece)

Mon, 06/27/2011 - 13:59 | 1405974 GeneMarchbanks
GeneMarchbanks's picture

The Squid are puttin' the squeeze on 'em!

How many tons their CB hold again?

Mon, 06/27/2011 - 17:49 | 1406637 boiltherich
boiltherich's picture

I suppose your question is rhetorical, but for those that would like to know Italy is the nation with the third largest holdings after the US and Germany, 2,452 tonnes, as of 12/10 according to IMF data.

Mon, 06/27/2011 - 14:04 | 1405977 MolotovCockhead
MolotovCockhead's picture

Good, love to see some fireworks light up!

Mon, 06/27/2011 - 14:01 | 1405979 slewie the pi-rat
slewie the pi-rat's picture

well, m00m00moody's went w/ the threatened downgrade (Paste):  

In a report published late Thursday, Moody's Investors Service placed the long-term debt and deposit ratings of 16 Italian banks and two Italian government-related financial institutions on review for possible downgrade.

The rating agency also changed the outlook to negative from stable on the long-term debt and deposit ratings of a further 13 Italian banks,

The move comes after Moody's put Italy's public debt on review for possible downgrade over concerns about low growth and high public debt, which at around 120 percent of GDP is one of the biggest in Europe.    Read more: http://www.thenewstribune.com/2011/06/24/1719025/italian-banks-hit-by-moodys-downgrade.html#ixzz1QV6aCKqY

and then cramer...

Mon, 06/27/2011 - 14:17 | 1406034 slewie the pi-rat
slewie the pi-rat's picture

...freaking cramer (6.24.11):  Cramer had a message for investors who own Italian banks or companies that have insurance in those banks: "Will you stop being so braindead and sell already?" 

i'll spare you the link...

i don't know if italy has any gold gold left.   just look what they've sold on QVC.

Mon, 06/27/2011 - 14:01 | 1405983 Caravaggio
Caravaggio's picture

Sure, it is widely known the italians are stupid peolpe and will stay and watch zukermans riding white hoarses.
BTW, is California the firts C in SHIT?

Mon, 06/27/2011 - 16:50 | 1406506 narapoiddyslexia
narapoiddyslexia's picture

I apologize in advance, but would someone please interpret this for me? Thank you.

Mon, 06/27/2011 - 22:04 | 1407430 MrPoopypants
MrPoopypants's picture

I thought it was obvious

Mon, 06/27/2011 - 23:54 | 1407818 MrPoopypants
MrPoopypants's picture

I thought it was obvious

Mon, 06/27/2011 - 14:06 | 1405984 Mercury
Mercury's picture

Is there a multiplier on that volume column or are we talking about ~$1mm worth of stock here (total) in those top three names?

Mon, 06/27/2011 - 14:15 | 1406044 optionsoptions
optionsoptions's picture

if you are asking is this pointless because its really not a lot of money either way then the answer is yes...its pointless

Mon, 06/27/2011 - 14:06 | 1405988 entendance
entendance's picture

latest from Italy...
stones, garbage and mr.bean...
http://www.entendance.com/forums/viewtopic.php?f=6&t=784&p=17797#p17797

Mon, 06/27/2011 - 14:05 | 1405996 campag
campag's picture

no HFT in Sigma x ? - who told you that Goldman ?

They surely run there own

Mon, 06/27/2011 - 14:06 | 1406002 Bansters-in-my-...
Bansters-in-my- feces's picture

Off topic a bit but WTF.??.... Dow surging and silver getting bitch slapped.

Fuck Off Exchange Stabilization Fund Crew,and JPM Fucking scum dogs....

Fuck Off and Die...!!!

Mon, 06/27/2011 - 14:08 | 1406011 alexwest
alexwest's picture

###
the real action is in the most actively traded dark pool names, where the big boys are actively trading risk, where HFTs are non-existent,
###

what makes you think that ??? i'd say is quite opposite
all those platforms are totally private / operated by banks, so i dont think thre's even simple disclosure regulation who trades what/etc

alx

Mon, 06/27/2011 - 14:10 | 1406017 Greeny
Greeny's picture

I dunno what crisis but DOW just blowing up without any signs

of pool back.. Go baby, go.. For some reason only

PM's are lagging.. Poor silver below $34 still.

Mon, 06/27/2011 - 14:15 | 1406047 Arius
Arius's picture

hate it to be right .... but it seems like a fake for suckers ...

Mon, 06/27/2011 - 14:11 | 1406018 JW n FL
JW n FL's picture

Libya produces 900,000bbl of oil.. of which 800,000bbl goes too Italy.. this does not include the natural gas.

 

With Libya in Play so are all the markets in Italy, consider it a small(ish) testing ground for things to come Globally.

 

Within the woes of Italy one could find the keys to successful trading going forward.. call Italy a ruff outline for future energy crisis trading.

 

They are lucky to have Italy to practice on!

Mon, 06/27/2011 - 14:36 | 1406121 DoChenRollingBearing
DoChenRollingBearing's picture

Hmm.

+ 100

Food for thought JW.  Will keep an eye open on Italy as a testing ground re energy.

I liked your comments on energy on another thread earlier as well.

Mon, 06/27/2011 - 14:14 | 1406022 decon
decon's picture

Does this mean that common posts ZH makes about no volume market rising on vapors only reflect the public volumes?  Do we need to take the public volumes x 2.33 to get the real volume?  If that's the case, does it explain big up moves on little "public volume"?

Mon, 06/27/2011 - 14:12 | 1406032 JW n FL
JW n FL's picture

there are a LOT! of ways to check dark(s) pool volume(s)!

 

it would interesting for someone to track the volume of East to West traffic since that Pool was opened..

Mon, 06/27/2011 - 14:56 | 1406202 JW n FL
JW n FL's picture

for those that are to fucking dim witted to get it.. repatriotization of funds is just a dog and pony show for the sheep to entertain themselves with.

Mon, 06/27/2011 - 14:15 | 1406024 JimRogers
JimRogers's picture

Great reporting TD.

 

Thanks for this new indicator.

 

Mon, 06/27/2011 - 14:19 | 1406049 A Man without Q...
A Man without Qualities's picture

Closed trading network using information that is not available to the wider market.  The banks know there is good reason to worry about Italy, but they don't want to scare the children.

Mon, 06/27/2011 - 14:27 | 1406075 buzzsaw99
buzzsaw99's picture

I find the price action in GS interesting. Can the financials rally without the squid?

Mon, 06/27/2011 - 14:25 | 1406080 KidDynamite
KidDynamite's picture

good indication that there's something wrong with your data screen: every single stock that came up is European

Mon, 06/27/2011 - 14:42 | 1406132 web bot
web bot's picture

That's funny... in a non-funny way of course.

Mon, 06/27/2011 - 14:32 | 1406087 Iam Rich
Iam Rich's picture

Interesting that the Italian bank smackdown a few days back didn't generate any ES reaction.  Everyones looking at Greece as the black swan.  A black swan would be an Italian bank blowing up (or a French, British, or "god forbid" a German bank).

Mon, 06/27/2011 - 14:36 | 1406106 camoes
camoes's picture

Mamma mia! Porca bastardo! They gonna short us Mario!

Mon, 06/27/2011 - 14:50 | 1406168 Scipionz
Scipionz's picture

Greece is "fixed", let's get Italy..." (sigh)

Mon, 06/27/2011 - 15:02 | 1406173 Use of Weapons
Use of Weapons's picture

http://www.businessinsider.com/italys-mario-draghi-has-just-been-appoint...

From BoI > ECB. He knows where the bodies are buried, and Burlesqoni has already been tipped to be axed [Economist, 9th June, front page hit piece, focusing largely on financial fraud]. Nothing like a bit of inside information to grease (puntastic!) the wheels of the next incumbent - although Berlusconi is going to be hard to top, in terms of bunga bunga. I'm getting the feeling that lassitude over old style 'continental' male sexuality is forcing it into being seen as a 20th C historical embarrassment, but I digress.

 

That, or Draghi left a note akin to this: http://business.timesonline.co.uk/tol/business/economics/article7128665.ece

 

Your choice, watch his (bearish) exit speech. Plus, Italy is looking like Greece II, in terms of output / employment / youth talent flight.

 

[Note: primary media source deliberately chosen for lack of copy/insight, and massive GS puff piece underneath - you go tiger, buying Cantor's ex mansion! Read what you will into it... Let's just say that Draghi's job at GS was 'purely advisory' and not at all a frontrunner for the GS Europe 2010-2015 playbook. Nothing like GS -> BoI > ECB for a transparent 'to the moon' career trajectory.]

Mon, 06/27/2011 - 14:51 | 1406174 fxpert
fxpert's picture

Enel is partially privatized, i think GS is buying and positioning for a yard sale. 

Mon, 06/27/2011 - 14:54 | 1406186 jmcadg
jmcadg's picture

Didn't Berlusconi recently come out saying Italy was strong, no need to worry, nothing to see, move on.

Like a football club chairman endorsing his manager.

Shit must be coming. Italy has all that tungsten to give up (allegedly).

Illuminati vs Mafia - ringside seats!!!

Mon, 06/27/2011 - 18:57 | 1406827 NotApplicable
NotApplicable's picture

Who's the Pope betting on?

Mon, 06/27/2011 - 15:00 | 1406221 sockcutter moto...
sockcutter motorforker's picture

good shit td! ive been interested in dark pools of liquidity for a while now.

still drinking martinis with the right people, i see...

Mon, 06/27/2011 - 15:09 | 1406236 sailfrog
sailfrog's picture

only 30% of all trading occurs on open exchange venues

I don't think this is accurate. What Themis was suggesting is that only 30% of the trades of a symbol (that is part of an index) happen on it's LISTING exchange, and since the index is then calculated with this limited set of trades it is less effective at representing actual market activity. A significant amount of volume (if not the majority of volume) in these symbols happen on other lit market centers, not just in dark pools or closed exchange venues.

Mon, 06/27/2011 - 17:49 | 1406624 ZeroPower
ZeroPower's picture

Exactly. An ATS very retail-friendly like BATS, ARCA are also not part of the 30%. Hence blowing this whole thing out of proportion although i suspect market professionals understand this is much ado (or not even) about nothing.

Tue, 06/28/2011 - 05:33 | 1408143 Paralympic Equity
Paralympic Equity's picture

But if You add up just some of the bigger ATS/Dark pool services, You can get up to 50 - 60 mln shares of Unicredit just for today (if You have a Bloomberg terminal), and by now You have arround 100 mln shares traded throught Milan.

Mon, 06/27/2011 - 15:25 | 1406297 ivana
ivana's picture

Lagging pig Italy is one tough nut to crack.

Special dark forces needed

Mon, 06/27/2011 - 16:13 | 1406415 rayban
rayban's picture

If I read the screen correctly we are talking about combined volumes of about 1 million euros for the three Italian banks combined...

Mon, 06/27/2011 - 17:06 | 1406531 Herbert_guthrie
Herbert_guthrie's picture

Ireland to Greece to Italy, over to Spain.

I feel like I'm on a debt-ride European vacation!

Mon, 06/27/2011 - 19:30 | 1406935 GlenD
GlenD's picture

ipig has a nice ring to it

Mon, 06/27/2011 - 20:48 | 1407219 Buck Johnson
Buck Johnson's picture

Italy is about to be hit and hit hard. 

Tue, 06/28/2011 - 11:40 | 1409007 AldoHux_IV
AldoHux_IV's picture

Front run illusions-- wreaks of central criminal cartel work.

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