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Liquidnet Lays Off 12% Of Workforce As Plunge In Stock Trading Volumes Now Causing Widespread Pain
The plunge in stock trading volumes is starting to cause real pain not only for the traditional exchanges and broker dealers. Bloomberg reports that one of the world's largest dark pool/block-trading brokers, Liquidnet, has just announced a 12% reduction in its workforce, letting 45 employees go. In a business where trading volumes define the top line, not only are broker-dealers about to experience major losses, but independent brokerages, in both light and dark venues, will continue to shed workers as long as the investor (either institutional or retail) refuses to return to stocks. And as Nic Lenoir pointed out yesterday, this will not happen as long as there is no confidence in the market, and while the realization that the US economy has hit unprecedented ponzi status continues to penetrate an ever greater sample of the US investing population.
Liquidnet Holdings Inc., the trading platform used by institutions such as mutual funds to buy and sell large blocks of shares, eliminated 45 employees this week because of a slowdown in business.
The cuts were confirmed by Rich Myers, a spokesman for the New York-based company. Liquidnet had about 375 employees before the 12 percent reduction. The job cuts were companywide, effecting people in trading, technology and transaction processing, Myers said
Those curious to find out more about the plight of the block trading business in a world where the pursuit of ever small order sizes is now the norm, should read the following Traders Magazine analysis. Yet cutting to the chase, the equation is simple: no trust - no trades; no trades - no profit. Which means that those who actually are left to trade the market will continue to decline, as the primary source of market capital - the retail investor, can not be substituted with any number of HFT gimmicks and Fed interventions.
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"I think this is the great example of why so many pin their hopes on the "as-yet-unknown-future-technology-fix". We just pop together the as-yet-unknown free energy device into the as-yet-unknown spaceship and fly to the as-yet-unknown destination and *wham!* populate the galaxy."
- TOD
"technology singularity" is the term you are looking for I believe
the idea is that we reach a point where we make a quantum leap forward in technology
the Pollyannas and hopium smokers of this world point to the singularity as the solution to whatever problem is being discussed: peak energy, peak potable water, etc
makes it hard to have an intelligent conversation with someone when they pull the singularity out of their ass
intelligent person: "we have reached the peak of oil production - look at the production rate over the last decade - it has increased very little in spite of repeated claims from the Saudis and others that they were about to increase production significantly - also, during this same time, the populations of the oil exporting countries have been raising their living standards and are now exporting less oil than they used to"
hopium smoker: "but after the singularity ..."
"Yup, and add to that the as-yet-unknown technologies to keep humans in suspended animation until they reach their destination X hundreds (or thousands) of light years away, without any malfunctions from equipment or software provided by the lowest cost bidder..."
- TOD
Yeah I'm popping vitamins big time along with Kurzweil of 'The Singularity is Near' fame in the hope that if we can last until the singularity of ever more massive computational power biologically integrated with human intelligence brings forth a new renaissance and a Methusalen ZeroHedge timeline... - but seeing the way the newest supercomputers are being used for fascistic criminal advantage does give me pause and perhaps I should reconsider the sometimes exquisite pleasures of booze, broads and nihilism.
Since you have defined the future of "Technology Singularities", any other prognostications you care to "pull out your ass"? History be damned!
You sound as though you relish the destruction of the economy. If that is the case, then you are part of the problem.
All bitch, no juice.
Considering what many people call "the economy", particularly those on CNBC, I welcome armageddon. The centrally spawned, fed nourished, corporate borg governance is Too Bloated To Feed.
Reality:
Improved more efficient technology displaces jobs.
Labor moves where labor cost is cheapest.
The current form capitalism works by creating demand out of thin air for products that nobody needs.
All that is needed to survive is in great supply (including water and oil once they are priced correctly.)
The rug will be pulled out from below all of this when enough Americans are unemployed and unable to buy that shit they don't need and realize they don't have to. Once that happens, the economy will explode and there will be no way back (in this generation.)
we can mostly credit Edward Bernays for Propaganda for buying crap we dont need.
I honestly wonder what freud thought of him...you don't fuck with the animal spirits.....
Go long Brawndo Inc!
Careful if you keep posting stuff like that you will be the new Czar of Hopium distribution for the administration
http://www.enterprisecorruption.com/
Yes, we have a miracle on the way to save us, no one has any idea what that is but certainly the biggest most important discovery/invention is waiting to bust out of nowhere and save us within days....YEA lets pin our existance on THAT!
yah, Rusty--there's a reason that the Wright Brothers beat Prof Langley (even tho he had no Econ PhD) to first flight. Big bang vs. incremental experiment/improvement. Kinda like my view on the fraud HFT pulsing the system. I think that they are doing micro-experiments before they unload. wtf do I know??
- Ned
how many jobs left @ mutual funds?
what about brokers?
Still too many
nothing constructive to say so I'll just reiterate what I've been saying for years
"stocks are for suckers!!!"
What's not constructive about that?
Let them see what it is like to become one of the not counted unemployed!
Merideth Whitney says Wall St to lose 80,000 jobs in the next few months.
http://blogs.wsj.com/marketbeat/2010/09/08/meredith-whitney-wall-street-to-axe-80000-jobs/
Reminds me of the Lawyer joke about a million lawyers at the bottom of the ocean. Ah never mind.....
ok--just a good start. - Ned
Leo does not like the word plunge....
...unless it's followed by "neckline".
http://www.youtube.com/watch?v=4Jb77za_MKc&p=1C1767423B4899FA&index=29&playnext=1
I will not return until the swamp is drained, and the thieves are in prison.
Probably won't happen in my lifetime, but I'm fine with that. I will teach my children the ways of these thieving leeches... so as to further cut off the income to these thieving whores.
Exactly!
They expect the ordinary person to throw even more money at the greedy rats, ...sorry rats, I didn't mean to compare you to banksters.
Teach your kids quickly, time might be running out faster than you have anticipated.
http://www.marketwatch.com/story/forget-going-green-earth-doesnt-care-2010-09-07?pagenumber=1
I keep looking for a hole in this argument, some scenario that will make the suggested future Farrell outlines look survivable. I can't come up with one.
Party on.
sunny
Thanks for the link. I'm surprised to see that on the MSM, and clearly missed it. Must've been downplayed quickly.
This is what MUST be done and CR you are not alone. I have already started teaching my children (ages 9 and 11) how to fight this war. Its been on for almost 100 years and it will likely take that long to win back what has already been lost. Freedom...
know your enemy
get the Griffith translation--his PhD. thesis after he sacrificed himself in '47. - Ned
Liquidnet, what a sham concept.
Pools for fools.
?
Are you saying the name is mis representative of its function?
They can work fixing the roads on one of barry's 6 year plan chain gangs.
Can I have a job guarding them with a shotgun? If so will I have to pay my own (very high) ammo bill?
Justice is the only thing that will ever restore confidence in the system. It's hard to feel much sympathy for people who never stood up against the corruption in the system.
+1000
+100
"they liquidated them ay? very resourceful."
wizard of oz
it's heart warming to see leeches, parasites, and barnacles swirl down the drain but can't we destroy the real criminals like dimon, blankenfein, pandit and other scum?
OT, but too good not to share. At this rate, the GOP might not even be able to beat Barry in the midterms.
http://gawker.com/5634055/the-craziest-political-speech-youll-see-this-f...
Hey commie scum......head on over to Intrade.
You muppet. I detest all politicians equally. Finding a clip of someone losing it like that just makes me laugh.
Intrade indeed. Peasant.
I'd like to know more about the context under which this speech was delivered but in the absence of that information, I think I'll go with the previous response to your post. It reminds me of congressmen like Stuart Smalley and that "Death Committees" idiot (Fortunately his name escapes me but I think it was congressman Grey).
Dude, it is just the same old dribble and will change nothing. Keep hoping though and maybe your Fairy Godmother will rescue your corrupt, anachronistic give-away crowd of hucksters.
See my reply above. Minus the peasant part, since you managed not to be insulting for no reason.
There are currently many people who can do what you do for a living, most of which will be willing to do it for much less. Welcome to the new normal, bitch.
If thats directed at me, you have taken my soubriquet too literally. If not directed at me, not sure who you're talking to.
I'm not sure who my comment was directed to. Doesn't make sense in this context.
Thats nothing, some lowly county treasurer? Just listen to Obamas whacked-out speech just from today! And in his adoring state of illinois, where he always had top approval numbers, its even dropped to solid negative approval now.
Does that give you a boner?
Hilarious! And scary that this guy has been in politics for so long. Who gave him his MA in communication? The Glen Beck school of hysteria?
Laid off bitchez - sorry I couldn't help myself...
I was thinking "Funemployment, bitchez"
Laid off? Is anyone going to go back to buying stocks? They lost a generation after the depression and they will again this time.
This time, it could be longer than a generation... With the internet, a lot of people are now understanding what has been going on for a long time.
King Midas, Eva Peron, Wall Street...it's always the same story. I can't hardly wait until somebody's (somebody big, TARP big) trading account blows up. Let me use small words so that Wall Street understands.........there isn't going to be a bailout this time, boyz.
I hope you're right, but I bet you a quadrillion dollars you're not.
What I find amusing is that the Retail Invest cashed out at the top. Not the bottom. I think this has left Wall Street baffled as now they are the Bagholder and do not know what to do. The only thing they are trying now is to squeeze the shorts to buy them out of their positions with the help of the FED of course. Problem with that is that the Retail Trader is gone and they would be the ones that caved into that scheme. The pros have enough resources to wait them out.
Good point. Good for them. Seeing the hedgies hurt is fun for a change. They keep feeding the long term hold lies to bring in the masses. Same goes for the real estate always goes up lies.
Where's the juice to push this turd any higher? Seems range locked.
I agree, from the start they thought they could run the biggest pump and dump ever, passing off the top of the pump to retail, but its not happening. Behind the scenes I sense they have NO clue what the hell to do and its now just 'pump today, maybe we'll figure out some new scheme by Monday', but for now theyre stuck holding the biggest bag in history.
Retail daytraders, sure, maybe theyre out thanks to omens, golden crosses, inverse H&S etc etc plethora you will find on here and other blogs telling you to get out.
But the retail 401k or non-daytrader who didnt want to earn zero in his savings account might still be waiting for the rise. I agree its a shame it won't come.
Let's hope this pattern continues (a melt-up if you like)...Couldn't happen to a nicer bunch of guys, ha ha!
Theyre truly damned if they do, damned if they dont, and I love it! Now we're supposed to feel sorry for the unemployment wave cresting on Wall St...enjoy it boyz! You made your bed, you lie in it.
Too many investors chasing a lack of liquidity in the markets. The scam on Wall Street can only be perpetuated so long if no new funds flow into the market from the masses. No use playing a poker game if one player has all of the chips. Let the deflation black hole open up at the foot of the NYSE!
AW thats a shame all the crooksters are being fired boo hoo hoo.
Exactly! Good riddance! And this is just the beginning.
New members ?....of the.. lazy Fat Pig society.... only existing on the backs of --working-- tax payers. Doesn't matter that these people payed into the system, I don't want to hear it... only matter's now that they are in need,,, screw them!!! They are destroying our economy..
6 year Musolinni plan to work on the railroad chaingang all the livelong day!! We are saved! WOOT!!
Dare it IS! (Sorry could not help myself!)
I mean really, can stock market sentiment be even worse?
The SPY should be at 800, not 1,100.
Seems to be shucking off the worst news ever.
Over 400 stocks on the NYSE now have a dividend yield of 4% or greater. Sure beats 3.8% on the 30-yr. Treasuries.
I'm still long, not really seeing a whole lot of weakness right now, except maybe the SOX.
Wouldnt it be great if they pulled off another 9-11 over the weekend and all exchanges are wiped out, DOW opens at 2,000 Monday morning or even lower? Man that would be great, leaving all these idiot longs with their heads spinning 'DUH what happened boss? Technicals looked OK'! Such an event WILL happen one of these days, and there will be no warning given.
Is that really what you home for? that is really sad.
You're wishing for another 9/11 attack?
What's wrong with you fucking people?
There's so many of you around here dreaming for the stock market to crash, the dollar to collapse, treasuries to implode, and anarchy in our society. You're nothing but a bunch of GI Joe drama queens, trying to play out your Gunsmoke and Delta Force fantasies.
Personally, I find no moral or ethical difference between those who fly 767's into skyscrapers and those who wish for the total destruction of our society.
Go fuck yourselves.
"There's so many of you around here dreaming for the stock market to crash".. um.. what's wrong with that in a rigged stock market?
"The dollar to collapse" - again - what's wrong with that, too? Makes gold even much more valuable..
"Treasuries to implode" - maybe the federal government would stop playing all these number games and start spending less so the US taxpayers dont' have to pay for their BS much longer.
"anarchy in our society" I've never seen anyone in here hoping for anarchy, but there are many on this board that think anarchy will kick in once the ponzi scheme around the world comes to a halt.
"You're nothing but a bunch of GI Joe drama queens" Given your previous postings, I don't think you're in any position to say that considering how often you've been junked when you post.
I think the extreme minority here wants a 9/11 repeat. However, the majority of people on ZH are realists - not people who buy into whatever Obama is saying for the past 2 years. The economy is being held up by taxpayer bucks, fraudulent accounting, and a few TRS-80s that manipulate the stock market at taxpayer expense.
So on that note - there's nothing wrong with trying to capitalize on financial fraud.
"Wouldnt it be great if they pulled off another 9-11 over the weekend" Sorry man - can't side with you there. I wish they never pulled off the first one.. life has been much different since then.
After seeing what the current adminstration is doing to the World Economy (flash crash, etc), I'm beginning to think that Al Qaeda was justified.
I hear about these stories and it makes me sad for the people. But it makes me wonder if the division of labor is just too great? These people were layed off from a position which supported buying and selling of digital money with digital stocks. Most of the trades are done by HFT now. A lot of the layed off workers will go home and still buy take out food and pay to get their oil changed because we dont know another way.
If dinosaurs talked, they'd exclaim, "We never saw the asteroid coming!"
Just more time to play tennis in Central Park, take leisurely lunches, visit their children's schools,work out at the gym, and five mile walks to cross the Brooklyn Bridge to try Grimaldi's pizza.
Amen Brother, Justice is the foundation of Confidence...
Low interest rates hurt technology companies too ;p
This business will be more profitable in a few years after a massive exodus from bonds. Asset purchasing works a bit differently for bonds than for equities
What can be done to curb HFT? REALISM! 1 sec time, no sub- $0.01 trading..
http://www.ft.com/cms/s/0/d72966fa-bc2d-11df-8c02-00144feab49a.html?ftcamp=rss
Charge 2Cents for every cancelled quote also.
I am recalling Deutsche Bank and others scrambling to strenghten their commodity desks at the peak of the commodity boom. Now, using this observation as a contra-indicator, we will see these people hired again in let´s say 4 month ? :=)
Liquidnet is a great product. I am sad that they had to lay off good folks. Their business model leads so many of the other dark pools by leaps and bounds. Seth is innovative, and has brought great positives to the investing world in terms of technological tools to execute efficiently. If he had to lay off it says something about the state of the rest of 'em.
Hope you guys laid off land quickly.
Sal
Thank u, i found this for a long time.
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