Bond Trading Lull Leaves Banks Set For Third Quarter Squeeze

Bernstein & Co. analyst, wrote in a Sept. 20 report, referring to fixed-income, currency and commodities trading. Citigroup, based in New York, is the third-biggest U.S. bank by assets.
Source: http://www.bloomberg.com/news/2013-09-23/citigroup-drops-after-report-that-bond-trading-will-drop.html

India considers late trading in agricultural commodities – regulator

A year ago, the nations third-biggest bank reported that it generated $3.7 billion in the third quarter from trading fixed income, currencies and commodities, but The Financial Times reports that some investors believe that Citibanks FICC revenue has fallen by more than 10%. Investor jitters over Citigroup come after investment bank Jefferies Group Jefferies Group last week announced an 88% quarterly decline in its fixed-income trading revenue. We experienced a very challenging summer in our fixed income business due to the rising rate environment, spread widening, redemptions experienced by our client base which heavily muted trading, and related mark-to-market write downs within our inventory, Richard Handler, chief executive of Jefferies, said in a statement. Jefferies is part of Leucadia. JPMorgan Chase JPMorgan Chase & Co., the nations biggest bank and a fixed-income trading powerhouse, has already warned investors to expect a hit to trading revenue.
Source: http://www.forbes.com/sites/nathanvardi/2013/09/23/the-wall-street-trading-machine-is-sputtering/

Insider Trading Buddies Nailed by … Metrocards?

Investment bank earnings can be the most volatile part of a bank’s results and are being watched for clues on how cost cuts and restructuring are reshaping the competitive landscape. The fight is on among top names to grab market share from banks that are retreating, such as UBS (UBSN.VX) and Royal Bank of Scotland (RBS.L). FICC is investment banks’ bread-and-butter activity and typically accounts for more than half their revenue. Quarterly FICC revenues topped $40 billion at times in 2009 and 2010, but in more normalised markets and with leaner businesses that will be nearly impossible to repeat, analysts reckon. Banks pulled in $26 billion from FICC in the second quarter and $36 billion in the first quarter, or half of the $122 billion in total investment bank revenues, according to Morgan Stanley analysts. The way banks report fixed income revenue is not always comparable, but analytics firm Tricumen estimated Citi (C.N) was the leading FICC bank in the first half, with revenue of $7.4 billion delivering a pretax operating profit of $3.6 billion.
Source: http://uk.reuters.com/article/2013/09/24/uk-banks-trading-bonds-idUKBRE98N0L020130924

Baltic Trading Limited Announces Exercise of Underwriters’ Option to Purchase Additional Shares

It is the one that is the most adaptable to change. -Charles Darwin There are often too many factors converging in the market for our mind to trade effectively and objectively, trading automation may provide a way around this problem. Talking Points: *Discretionary trading has the challenge to be objective when your money is on the line *Its tough to be objective when the pros disagree *It can often be helpful to turn to auto trading based on a methodology you trust * Mirror Trading is a no-fee option to shop auto trading systems Trading by its nature involves extreme multi-tasking around the clock under the stress of potential financial gain or loss. The human mind often has difficulty successfully multi-tasking in a way that allows progress to be made in the task at hand. When trading, the task at hand is taking real time information via price as well as news coming off the wires that can affect your trades outcome. All the while professional traders can be on opposite sides of the trade. If you dont feel like you have the tools to trade like a professional, weve review created a FREE certificate course here to help you understand the key concepts we believe a professional trader should know, whether they use automated trading or not.
Source: http://www.dailyfx.com/forex/education/trading_tips/post_of_the_day/2013/09/24/Discretionary_Traders_Dilemma.html

The Discretionary Trader’s Dilemma & Automated Trading’s Solution

These forward looking statements are based on management’s current expectations and observations, and include those that discuss the offering, the anticipated timing of closing of the offering and the use of net proceeds from the offering. These forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. Such statements are subject to various risks, uncertainties and assumptions, including market conditions. Should one or more of those risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed in any forward-looking statements. These risks, as well as others, are discussed in greater detail in Baltic Trading’s filings with the SEC, including, without limitation, the “Risk Factors” section in the preliminary prospectus supplement and related prospectus relating to our offering, our Annual Report on Form 10-K for the year ended December 31, 2012, and our subsequent filings with the SEC. @yahoofinance on Twitter, become a fan on Facebook Related Content Chart Your most recently viewed tickers will automatically show up here if you type a ticker in the “Enter symbol/company” at the bottom of this module. You need to enable your browser cookies to view your most recent quotes.
Source: http://finance.yahoo.com/news/baltic-trading-limited-announces-exercise-123800234.html

The Wall Street Trading Machine Is Sputtering

Late trading is currently allowed only in metals and energy products, where prices follow global markets. In agriculture commodities, futures trading currently takes place between 10 a.m. and 5 p.m. “We are discussing with exchanges and other trade participants how we can start late-evening trading in agriculture commodities as some spot markets remain open till 8 p.m.,” Abhishek told reporters on the sidelines of a conference. The National Commodity and Derivatives Exchange, the biggest platform for futures trade in agriculture commodities, has already sought approval of the FMC to start late trading in some commodities. “Late-evening trading can help market participants.
Source: http://in.reuters.com/article/2013/09/22/futures-trading-agricultural-commodities-idINDEE98L03P20130922

Citigroup Drops After Report That Bond-Trading Will Drop

So you tell your friend, and your friend trades, and then he hands you a bag of cash. Division of labor! These guys got that part down: Allen never traded a share, says the SEC, and Bennett paid him with bags of cash.* Also, you don’t tell your friend stuff on a recorded phone line . These guys managed that, though they did occasionally communicate on un-recorded phone calls, which is also sub-optimal, since the SEC can cite phone records showing that Allen called Bennett on days that he learned new information.** Most important, you keep your hand-offs of bags of cash secret. Really, though, this seems like it should have worked: For example, on July 1, 2008, Bennett withdrew $5,200 from a Citibank branch located near his office at 10:52 am. Allen swiped his Metrocard at the 47-50 Rockefeller Center subway stop (the subway stop closest to Allen’s office) at 12:36 pm and then again at the 59 Street Columbus Circle subway stop (the subway stop closest to Bennett’s office) at 1:54pm.
Source: http://www.bloomberg.com/news/2013-09-23/insider-trading-buddies-nailed-by-metrocards-.html

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