Posting these after vacation ... no changes this week. VXX / XIV reversals look ill-timed.
Movies Watched -- All Is Lost
Really enjoyed this one ... just over 100 minutes.
Rap Tap on Wood
From Born to Dance ... 1936 ... original title of the movie was Great Guns. Has one of my favorite verses (so many I love from Cole Porter though):
When ev'ry meal you take
Is made of milk and honey,
When ev'ry stock you stake
Is making mints of money,
When ev'ry heart you break
Is such a cinch, it's funny,
Careful, sonny,
Rap-tap, rap-tap, rap-tap-tap, rap-a-tap-tap....
Ra-ap tap on wood
Other songs in the musical that I enjoy include Love Me, Love My Pekingese ("'Spite of your antipathies") and I've Got You Under My Skin (best version done by old Blue Eyes many years later).
List of Stock Exchanges and Dark Pools
List of US Stock Exchanges:
- BATS Exchange - Kansas City
- BATS Y-Exchange - Kansas City
- C2 Options Exchange - Chicago - Owned and operated by CBOE Holdings
- CBOE Futures Exchange - Chicago - Owned and operated by CBOE Holdings
- Chicago Board Options Exchange (CBOE) - Chicago
- Chicago Mercantile Exchange (CME) - Chicago - Owned and operated by CME Group Inc.
- Chicago Stock Exchange (CHX) - Chicago
- EDGA Exchange - Jersey City - A Direct Edge exchange
- EDGX Exchange - Jersey City - A Direct Edge exchange
- International Securities Exchange (ISE) - New York City
- NASDAQ Stock Market - New York City
- NASDAQ OMX PHLX - Philadelphia -Formerly Philadelphia Stock Exchange (PHLX)
- NASDAQ OMX BX - Boston - Formerly Boston Stock Exchange (BSE)
- National Stock Exchange (NSX) - Jersey City
- New York Stock Exchange (NYSE) - Owned and operated by - IntercontinentalExchange (ICE) - Atlanta Georgia
- NYSE Alternext US - Organized as NYSE Alternext US LLC (formerly American Stock Exchange (AMEX)) - New York City
- NYSE Arca (formerly Pacific Exchange, previously Archipelago (Terra Nova)) - Chicago
- One Chicago - Owned jointly by the IB Exchange Group (IB), CBOE, and CME Group - Chicago
List of Dark Pools:
Independent dark pools
- Instinet
- Liquidnet
- NYFIX Millennium
- Posit/MatchNow from Investment Technology Group (ITG)
- Pulse Trading BlockCross
- RiverCross Securities
- SmartPool
- TORA Crosspoint
- ETF One [16]
Broker-dealer-owned dark pools
- JPMorgan Chase Bank - JPMX
- Barclays Capital - LX Liquidity Cross
- BNP Paribas - BNP Paribas Internal eXchange (BIX)
- BNY ConvergEx Group (an affiliate of Bank of New York Mellon)
- Cantor Fitzgerald - Aqua Securities
- Citi - Citi Match, Citi Cross
- Credit Agricole Cheuvreux - BLINK
- Credit Suisse - CrossFinder
- Deutsche Bank Global Markets - DBA (Europe), SuperX ATS (U.S.)
- Fidelity Capital Markets
- GETCO - GETMatched
- Goldman Sachs SIGMA X
- Knight Capital Group - Knight Link, Knight Match
- Merrill Lynch - Instinct-X
- Morgan Stanley - NightVision
- Nomura - Nomura NX
- UBS Investment Bank - UBS ATS, UBS MTF, UBS PIN
- Societe Generale - ALPHA Y
- Daiwa - DRECT
- Wells Fargo Securities LLC - WELX
Consortium-owned dark pools
- BIDS Trading - BIDS ATS
- LeveL ATS
Exchange-owned dark pools
- International Securities Exchange
- NYSE Euronext
- BATS Trading
- Swiss Block ?
- Nordic@Mid ?
Other dark pools
Dark pool aggregators
- Fidessa - Spotlight
- Bloomberg Tradebook
- SuperX+ – Deutsche Bank
- ASOR – Quod Financial
- Progress Apama
- ONEPIPE – Weeden & Co. & Pragma Financial
- Xasax Corporation
- Crossfire – Credit Agricole Cheuvreux
Painfully Simple, Painfully Fair
From a December 1999 article in Wall Street + Technology titled The top 10 financial technology innovators of the decade
Joshua Levine The Matchmaker
If there's a single person that revolutionized the equity markets in the 1990s, it's Joshua Levine, creator of the Island ECN--a computerized trading system that automatically matches buyers and sellers.
Island is an outgrowth of The Watcher, a front-end trading system into the Nasdaq system that Levine had first created, which provides day traders with direct electronic access into the SOES and SelectNet systems. Island, however, developed in January 1996, is widely considered a more significant innovation.
"This was probably the most influential change in the markets since they did away with fixed-commission rates in the 70s," says Mark Friedfertig, CEO of Broadway Trading, a leading day-trading firm that has used Island since January 1996.
As Friedfertig recalls it, Island started as an internal electronic communications; network (ECN), which Friedfertig and others say led to the SEC's order handling rules issued in January 1997. The rules force Nasdaq market makers to post their customers' limit orders in their Nasdaq quote or send the order onto the newly created ECNs.
According to Peter Stem, the Chief Technology Officer of Datek Online, Island is successful because "the Island ECN is just painfully simple, it's painfully fair, there are few rules because it's very straight forward-buyers and sellers meet, a trade is won, end of story," says Stem, who met Levine when both were freshman at Carnegie Mellon University. Levine reportedly left school and headed for Wall Street where he teamed up with Datek Online co-founder Jeffrey Citron. Noticing that there were "cross markets" going on in Nasdaq-when the price someone is willing to pay to buy stock is higher than the price someone else is offering to sell at-Levine wrote a program to track how many times a day this was happening. 'Josh said, this is ridiculous that trades aren't taking place when you have customers that are willing to pay higher to buy than customers willing to sell stock," recalls Friedfertig. "He created a way for customers to trade with other customers as opposed to just trading with market makers," says Friedfertig.
Levine spread the gospel by publishing the Island API (application programming interface) on his own personal Web site, www.josh.com. Today, Island has grown to become the second most popular ECN after Instinet-executing over 100 million shares a day. (Levine himself argues that "Instinet created the ECN trend, not Island. Island just did what Instinet was already doing, only better.")
Island is one of three ECNs that have filed with the SEC for permission to register as an exchange. And, it's currently the only ECN to display its real-time limit order book to the public on its Web site, using a program that Levine wrote called the BookViewer, as well as to reveal its volume statistics.
Levine, now 31, is in charge of the development of all the core systems, which have been written in DOS and Java. Going forward, where Island needs work, he says, is not in its system, but in its communications. "Our challenge in the future is to explain to the investing public how the markets work."
Watcher and the Monster Key
From a 1998 NYTimes article on Jeff Citron and Datek:
"One reason for Datek's success was its innovative software programs like Watcher and the Monster Key -- programs that other S.O.E.S. houses eventually licensed or mimicked. Mr. Citron and Mr. Levine, meanwhile, created an array of companies to orbit around Datek, including Smith Wall Associates, a computer services concern that had sales of $100 million in 1996. It was from many of these companies that the two say they made much of their fortunes, tens of millions of dollars. They even won over regulators by developing an electronic stock exchange called Island, a system that now handles about 4 percent of all Nasdaq trading volume."
Wonder where Josh Levine is now? I don't think he's still at josh.com. {Update: Yes, he is, though his blog is now hosted by WordPress.)
Trading Idea for Thu. Aug. 28, 2014 | Aon plc (AON)
Looks like down to me. Deep, deep analysis.
Netflix Hits $484 Target
You'll recall the trading idea for Mon. Aug. 4 in Netflix. I posted a 15-min chart of it a few days later, and here's the 60-minute chart. Good ideas like this are a dime a dozen, execution is everything.
Back from Holiday
Sorry, forgot to tell my dozen readers I'd be away on holiday for a few days. Posted all the pics to Flickr as usual.
Movies Watched -- Blue Ruin
Revenge tale ... but about an avenger who is unable to plan ahead ... things go wrong, very wrong. It's a downer. Overly violent. White trash America not very realistically depicted. But it was exactly 90 minutes long which wins big points with me.