Mahwah

Historic Volume Surge Forces Deutsche, Morgan Stanley To Shut Down Dark Pools

Following a historic surge in volume after the Brexit referendum, which sent bid/ask spreads soaring and led to a disorderly market at the European open, Deutsche Bank AG temporarily shut off outside market makers in its dark pool, SuperX. The bank told outside market makers that they would be prohibited from trading in SuperX on Friday, until the bank notified them it was ready to resume. Morgan Stanley’s dark pool was likewise turn "off" this morning as ATS operators scrambled to make sense of the broken market.

NYSE Issues Official Explanation Why Its Was Offline For Nearly 4 Hours, Blames Software Upgrade

"On Tuesday evening, the NYSE began the rollout of a software release in preparation for the July 11 industry test of the upcoming SIP timestamp requirement. As is standard NYSE practice, the initial release was deployed on one trading unit. As customers began connecting after 7am on Wednesday morning, there were communication issues between customer gateways and the trading unit with the new release. It was determined that the NYSE and NYSE MKT customer gateways were not loaded with the proper configuration compatible with the new release."

Meanwhile, Over At The Real New York Stock Exchange

Ignore the constant commotion at the TV studio in downtown Manhattan which once was the New York Stock Exchange (currently owned by the ICE) and is now mostly packed with actors, cheerleaders, set designers and producers, and focus on the real exchange located some 40 miles away in Mahwah, NJ (which for a few months over the winter even had a laser attached to its main microwave tower), where moments ago the scene was the following...

Despite Broken Stock Market, Strong 10 Year Treasury Auction Prices Without A Glitch

The US stock market may be in shambles and the Mahwah Stock Exchange is offline for nearly 2 hours now, but that had no impact on demand for US paper, in fact moments ago the US Treasury just sold $21 billion in 10 Year paper without a single hitch. With a When Issued of 2.233%, the bond priced 0.8% through at 2.225% showing that when one can't buy anything else, one buys what one can, in this case 10 Year paper.

A Chapter In Trading History Closes: CME Ends The Open-Outcry Pit

Scenes like this one from the iconic movie Trading Places will henceforth be forever entombed in the annals of trader history, a history in which man is thoroughly replaced by machine, following news earlier today that the CME will close most of its futures pits in Chicago and New York. "The move deals a death blow to trading floors that grew in the 20th century alongside America’s agriculture, mining and energy industries and were once synonymous with capitalism."

Today's Early Market Closure Schedule

Europe is mostly closed on Christmas Eve, which means that only the junior algos are lifting every offer, few as they may be, on the other side of the Atlantic today and eagerly awaiting the 1:00PM Eastern close of the NYSE megahub in Mahwah, NJ. Here is the full schedule of early market closures today.

"Turn Those Machines Back On" - The Day The Bond Market Died (If Only For A Few Minutes)

while the algos would have been delighted to let October 15 slide into the collective memory made obsolete by a constantly rising market (because investors are only truly angry when the market plunges not when it surges) just as the regulators made a mockery of their fiduciary responsibilities in the aftermath of May 6, and now markets are more fragile than ever as HFTs comprise the vast majority of all trades, some appear to be complaining and even, gasp, asking questions how it is possible that the $12 trillion US Treasury market traded like an illiquid Pink Sheets pennystock, or worse, the Nikkei.Here is the WSJ with some of the complaints: “It starts moving faster and faster, and you can’t point to anything."Actually, yes you can.

PBOC Disappoints Rate-Cut Hopers, Injects $32 Billion Into Banks

We suspect the market will be disappointed by this morning's headlines from China. Chinese rate markets are implying a RRR cut is coming soon (as swap rates drop below deposit rates - previously signaled 2 RRR cuts) but the PBOC announced this morning a muich more focused injection of cash to 20 of the nations' largest banks. RRR cuts, are (theoretically) considerably more broadly stimulative to lending than a $32.8 billion cash injection to banks - which are struggling to lend as demand for loans (given high costs of debt for the firms that need the money the most) is weak. One can only imagine the holes in bank balance sheets that exist if the PBOC is forced to do this. Simply put, no matter how much hope there is, as we noted previously, the PBOC will not be providing broad stimulus.

Chinese Car Sales Grow At Slowest Pace In 19 Months

According to Bloomberg, China’s vehicle sales grew at the slowest pace in 19 months in September as demand for trucks and buses slumped with the weaker economy. Total vehicle sales, which include passenger and commercial vehicles, rose 2.5 percent from a year earlier to 1.98 million units, the China Association of Automobile Manufacturers said today. That was the slowest pace since February 2013.