-
Strategies for a discontinuous future.












Friday, July 09, 2004
 


Automarkets

Here are some stats from this Journal blurb, which tell us how capital flows through the stock market, and how machines have a more and more prominent role in allocating capital - part of the reason why the joint-stock corporation is an obsolete organizational form:

"...Program trading in the week ended July 2 accounted for 58%, or an average of 808.1 million shares daily, of New York Stock Exchange volume. Brokerage firms executed an additional 565.9 million daily shares of program trading away from the NYSE, with 4% of the overall total on foreign markets. Program trading is the simultaneous purchase or sale of at least 15 different stocks with a total value of $1 million or more.

Of the program total on the NYSE, 9.2% involved stock-index arbitrage. In this strategy, traders dart between stocks and stock-index options and futures to capture fleeting price differences. Less than 0.1% involved derivative product-related strategies. Index arbitrage can be executed only in a stabilizing manner when the Dow Jones Industrial Average moves 200 points or more from its previous day's close.

Some 54.5% of program trading was executed by firms for their clients, while 41.8% was done for their own accounts, or principal trading. An additional 3.8% was designated as customer facilitation, in which firms use principal positions to facilitate customer trades."

-- umair // 12:19 PM //


Comments:
Post a Comment
search



new


input

due diligence
ventureblog
a vc
techblurbs
tj's weblog
venture chronicles
terranova
the big picture
gigaom
venchar
bill burnham
babak nivi
n-c thoughts
paidcontent
techdirt
slashdot
london gsb
mefi
boingboing
blort
hardwax
betalounge

ing
morgan
chicago fed
dallas fed
ny fed
imf
world bank
nouriel roubini

portfolio
contact

mail.
uhaque (dot) mba2003 (at) london (dot) edu

skype.
umair.haque

atom feed

technorati profile

blog archives