File
... Game Theory: a mathematical technique used to analyze competitive situations where the outcome of a participant’s choice depends on the actions of other participants Price War: competitive price cutting by firms, usually in an oligopoly, as each one tries to capture market share from rival firms Con ...
... Game Theory: a mathematical technique used to analyze competitive situations where the outcome of a participant’s choice depends on the actions of other participants Price War: competitive price cutting by firms, usually in an oligopoly, as each one tries to capture market share from rival firms Con ...
Project 2: Options
... Because you have a stock option for IBM, this gives you the right, but not the obligation, to buy IBM stock at $30 a share even though IBM is trading at $35 a share. In this case you exercise your option, buying IBM stock at $30 a share. You could then take the stock you’ve purchased and then sell i ...
... Because you have a stock option for IBM, this gives you the right, but not the obligation, to buy IBM stock at $30 a share even though IBM is trading at $35 a share. In this case you exercise your option, buying IBM stock at $30 a share. You could then take the stock you’ve purchased and then sell i ...
Hong Kong stock market historical events
... and dealing partnerships were required to fulfil certain requirements. The Securities (Recognition of Stock Market) Notice and the Securities (Registration of Dealers) (Approved Examinations) Notice were published in the Government Gazette. The Legislative Council approved the amended Securities (St ...
... and dealing partnerships were required to fulfil certain requirements. The Securities (Recognition of Stock Market) Notice and the Securities (Registration of Dealers) (Approved Examinations) Notice were published in the Government Gazette. The Legislative Council approved the amended Securities (St ...
The information content of an open limit-order book
... levels of depth for contracts listed on the CME (e.g., the popular E-Minis futures) through the CME Globex Level II data feed, whereas the CBOT Level II data feed allows traders to view the top ten levels of depth for contracts listed on the CBOT (e.g., the Mini-Sized Dow Jones Industrial Average Fu ...
... levels of depth for contracts listed on the CME (e.g., the popular E-Minis futures) through the CME Globex Level II data feed, whereas the CBOT Level II data feed allows traders to view the top ten levels of depth for contracts listed on the CBOT (e.g., the Mini-Sized Dow Jones Industrial Average Fu ...
Speculative Investor Behavior in a Stock Market with
... stream at a future date. Investors may be unable initially to achieve positions with which they will be forever content, and thus the current stock price may be affected by whether or not markets will reopen in the future. If they do reopen, a speculative phenomenon may appear. An investor may buy t ...
... stream at a future date. Investors may be unable initially to achieve positions with which they will be forever content, and thus the current stock price may be affected by whether or not markets will reopen in the future. If they do reopen, a speculative phenomenon may appear. An investor may buy t ...
Annex 7
... 4. Marking to market is the valuation of positions at least daily at readily available close out prices that are sourced independently, e. g., exchange prices, screen prices or quotes from several independent reputable brokers. 5. When marking positions to market, the more prudent side of bid/offer ...
... 4. Marking to market is the valuation of positions at least daily at readily available close out prices that are sourced independently, e. g., exchange prices, screen prices or quotes from several independent reputable brokers. 5. When marking positions to market, the more prudent side of bid/offer ...
Exchange Traded funds (ETFs) Investing 101
... NewGold - Absa Capital Exchange Traded Fund “The simplest and most cost effective way for investors to invest directly in physical gold” ...
... NewGold - Absa Capital Exchange Traded Fund “The simplest and most cost effective way for investors to invest directly in physical gold” ...
Informed Trading in Parallel Auction and Dealer Markets
... markets. The LSE differs from other major markets in a number of ways. On the New York Stock Exchange (NYSE), a specialist has an obligation to maintain narrow spreads and stabilize prices. Upstairs brokers must expose negotiated trades to the downstairs floor and to the order book. In Paris, only t ...
... markets. The LSE differs from other major markets in a number of ways. On the New York Stock Exchange (NYSE), a specialist has an obligation to maintain narrow spreads and stabilize prices. Upstairs brokers must expose negotiated trades to the downstairs floor and to the order book. In Paris, only t ...
The Market Microstructure Approach to Foreign Exchange: Looking
... open. A currency’s liquidity tends to be deepest during local trading hours and there is a brief “overnight” lull in all FX trading activity between about 19:00 and 22:00 GMT (Lyons, 2001; Rime 2003; Osler, 2009). By 2010 the U.S. dollar (USD) was involved on one side of roughly three-quarters of al ...
... open. A currency’s liquidity tends to be deepest during local trading hours and there is a brief “overnight” lull in all FX trading activity between about 19:00 and 22:00 GMT (Lyons, 2001; Rime 2003; Osler, 2009). By 2010 the U.S. dollar (USD) was involved on one side of roughly three-quarters of al ...
Market Segmentation, Information Asymmetry
... Shanghai and the Shenzhen Stock Exchanges could only be traded by domestic investors. The only opportunity for foreign participation in the Chinese equity markets was through companies that issued a separate, restricted class of shares for foreigners. In Shanghai or Shenzhen foreign investors could ...
... Shanghai and the Shenzhen Stock Exchanges could only be traded by domestic investors. The only opportunity for foreign participation in the Chinese equity markets was through companies that issued a separate, restricted class of shares for foreigners. In Shanghai or Shenzhen foreign investors could ...
The Hub and Spoke Agreement - Centre for Competition Policy
... ‘The following shall be prohibited as incompatible with the common market: all agreements between undertakings, decisions by associations of undertakings and concerted practices which may affect trade between Member States and which have as their object or effect … the … restriction … of competition ...
... ‘The following shall be prohibited as incompatible with the common market: all agreements between undertakings, decisions by associations of undertakings and concerted practices which may affect trade between Member States and which have as their object or effect … the … restriction … of competition ...
CAPM
... The only economic theory we have used so far are: (1) standard deviation risk is priced in the economy, (2) the sum portfolio is observable, and (3) investors hold well diversified portfolios similar to the sum portfolio. It is therefore only these aspects of the theory that may be put to empirical ...
... The only economic theory we have used so far are: (1) standard deviation risk is priced in the economy, (2) the sum portfolio is observable, and (3) investors hold well diversified portfolios similar to the sum portfolio. It is therefore only these aspects of the theory that may be put to empirical ...
H G I M
... is the rate of return on a Morgan Stanley Capital International’s All Country World Index; IMSCI,t, ␣Mexico,t is the week t risk-adjusted profit on Mexico’s investment opportunities; Mexico,t is the week t measure of the Mexican market’s sensitivity to changes in the global market; and Mexico,t is ...
... is the rate of return on a Morgan Stanley Capital International’s All Country World Index; IMSCI,t, ␣Mexico,t is the week t risk-adjusted profit on Mexico’s investment opportunities; Mexico,t is the week t measure of the Mexican market’s sensitivity to changes in the global market; and Mexico,t is ...
Economic Update
... DoubleLine seeks to maximize investment results consistent with our interpretation of client guidelines and investment mandate. While DoubleLine seeks to maximize returns for our clients consistent with guidelines, DoubleLine cannot guarantee that DoubleLine will outperform a client's specified benc ...
... DoubleLine seeks to maximize investment results consistent with our interpretation of client guidelines and investment mandate. While DoubleLine seeks to maximize returns for our clients consistent with guidelines, DoubleLine cannot guarantee that DoubleLine will outperform a client's specified benc ...
A common factor analysis for the US and the German stock markets
... frequency. On the other hand, increasing the frequency to an arbitrary level is also counterfactual. Indices especially face infrequent trading problems since they contain also less liquid stocks. Hence, we regard minute by minute data as the best way to cope with the trade-off between the issues of ...
... frequency. On the other hand, increasing the frequency to an arbitrary level is also counterfactual. Indices especially face infrequent trading problems since they contain also less liquid stocks. Hence, we regard minute by minute data as the best way to cope with the trade-off between the issues of ...
2010 Flash Crash
The May 6, 2010, Flash Crash also known as The Crash of 2:45, the 2010 Flash Crash or simply the Flash Crash, was a United States trillion-dollar stock market crash, which started at 2:32 and lasted for approximately 36 minutes. Stock indexes, such as the S&P 500, Dow Jones Industrial Average and Nasdaq 100, collapsed and rebounded very rapidly.The Dow Jones Industrial Average had its biggest intraday point drop (from the opening) up to that point, plunging 998.5 points (about 9%), most within minutes, only to recover a large part of the loss. It was also the second-largest intraday point swing (difference between intraday high and intraday low) up to that point, at 1,010.14 points. The prices of stocks, stock index futures, options and ETFs were volatile, thus trading volume spiked. A CFTC 2014 report described it as one of the most turbulent periods in the history of financial markets.On April 21, 2015, nearly five years after the incident, the U.S. Department of Justice laid ""22 criminal counts, including fraud and market manipulation"" against Navinder Singh Sarao, a trader. Among the charges included was the use of spoofing algorithms; just prior to the Flash Crash, he placed thousands of E-mini S&P 500 stock index futures contracts which he planned on canceling later. These orders amounting to about ""$200 million worth of bets that the market would fall"" were ""replaced or modified 19,000 times"" before they were canceled. Spoofing, layering and front-running are now banned.The Commodity Futures Trading Commission (CFTC) investigation concluded that Sarao ""was at least significantly responsible for the order imbalances"" in the derivatives market which affected stock markets and exacerbated the flash crash. Sarao began his alleged market manipulation in 2009 with commercially available trading software whose code he modified ""so he could rapidly place and cancel orders automatically."" Traders Magazine journalist, John Bates, argued that blaming a 36-year-old small-time trader who worked from his parents' modest stucco house in suburban west London for sparking a trillion-dollar stock market crash is a little bit like blaming lightning for starting a fire"" and that the investigation was lengthened because regulators used ""bicycles to try and catch Ferraris."" Furthermore, he concluded that by April 2015, traders can still manipulate and impact markets in spite of regulators and banks' new, improved monitoring of automated trade systems.As recently as May 2014, a CFTC report concluded that high-frequency traders ""did not cause the Flash Crash, but contributed to it by demanding immediacy ahead of other market participants.""Recent research shows that Flash Crashes are not isolated occurrences, but have occurred quite often over the past century. For instance, Irene Aldridge, the author of High-Frequency Trading: A Practical Guide to Algorithmic Strategies and Trading Systems, 2nd ed., Wiley & Sons, shows that Flash Crashes have been frequent and their causes predictable in market microstructure analysis.