Citadel

Frontrunning: November 16

  • U.S. stock futures slip as post-election rally slows (Reuters)
  • Pence Ousts Lobbyists From Transition Team (WSJ)
  • Infighting hits Trump’s foreign policy transition (FT)
  • Trump’s Win and Transition Turmoil Buy Time for FBI Chief Comey (BBG)
  • Elizabeth Warren Sends Donald Trump Letter Criticizing Transition Team’s Wall Street Ties (WSJ)
  • Saudi Arabia set to reveal depth of oil reserves (FT)

Biggest US Discount Brokerage TD Ameritrade Buys Scottrade For $4 Billion

The previously noted surge in Monday merger announcements, which seek to take advantage of still cheap credit before yields rise, got its latest entrant moments ago when discount brokerage TD Ameritrade agreed to acquire peer Scottrade in a $4 billion cash and stock transaction.

The "Deplorables" - Who We Are And What We Want

If you really want to know who we “deplorables” are it’s rather simple - we are the ones who refuse to participate in the operation of the machine. We are the cogs who refuse to cooperate. We will not grease the gears. We will not stoke the furnace. We will stop the whole damn thing in it’s tracks, because, for the sake of future generations, we must.

The SEC's Former Top "HFT Expert" Joins HFT Titan Citadel

April 2015, Zero Hedge: "Gregg Berman will find a hospitable and well-paid position after spending 6 years defending the well-paying HFTs lobby. In all likelihood Berman will join the NY Fed's shadow trading desk and the world's most leveraged hedge fund, Citadel itself."
September 2016, WSJ: "Gregg Berman joins Citaldel."

IEX Set To Revolutionize Gold Trading With Blockchain-Based Exchange

The IEX Group, which shocked market participants on August 19 when it became the first official exchange to offer a mechanism to bypass HFT predatory algos and frontrunning against all odds, including vocal complaints by established players like Nasdaq and Citadel, now seeks to revolutionize the more than $5 trillion-a-year gold market with a new exchange being created by its spinoff TradeWind Markets, Reuters reports.

"No Reason" Why ECB Shouldn't Buy Stocks: Peterson Institute

"I don’t see a reason [for the ECB not to buy stocks]" said Joseph Gagnon, senior fellow at the Peterson Institute for International Economics. "It isn’t obvious to me why a central bank wouldn’t always want a diversified portfolio, including equities."

Norway's Largest Bank Is Going Long VIX For The First Time: "We See Much More That Can Drag The Market Down"

“We see much more that can drag the market down than we see positive surprises. We can’t see where they could come from. It’s not yet like 1999 as far as valuation goes, but there are indications of a bubble. Now we’ve emptied the six shooter in all areas - the rate is zero, a lot of QE, pricing is up and growth is the same - it’s more challenging now.”

CLSA: "The Bank Of Japan Has Nationalized The Japanese Stock Market"

The Bank of Japan's near doubling of its purchases of Tokyo shares is causing investors to worry the central bank will dominate financial markets, which could lead to price distortions as it continues to grease the economy. It also prompted a CLSA analyst to tell the truth: "The BOJ is nationalizing the stock market."

"This Ain't Rocket Science Folks" - Fundamentals Matter (And Will Always Matter)

We can pretend fundamentals don’t matter and sure in the day to day profit taking of Citadel and the like they really don’t matter. But, while the PhDs may talk big about this new world economy where a move to universal welfare means jobs and wages don’t matter - well that is nonsense. Jobs and wages matter and they will always matter.