Reasons behind China and Its President off To a Rocky 2016

 

Barely more than a week into 2016, Chinese President Xi Jinping is having a rough time of it, with challenges ranging from a tumbling stock market to new provocations from argumentative partner North Korea. While none pose an existential threat to his administration, the world will be watching to see whether he has the sophisticated touch needed to find durable solutions and maintain stability.

STOCK MARKET VOLATILITY

China twice deployed its “circuit breaker” mechanism to halt trading as stock markets nosedived by 10 percent in the first week of the year. Beijing finally abandoned the mechanism, and left the perception that regulators don’t have a clue as they try to stabilize a market that more than doubled between late 2014 and June, then dived 30 percent, causing deep pain among retail investors.

CURRENCY QUEASINESS

Meanwhile, China’s currency, the yuan, has slid to a five-year low against the dollar, forcing the government to spend tens of millions of dollars from its foreign currency stockpile to defend it. The government last week guided the yuan 1.5 percent lower to assist hard-pressed exporters, but the clumsy move sent shockwaves through world markets, further weighing on Chinese share prices.

SLOWING ECONOMY

Hiccups in the world’s second-largest economy are expected to continue in 2016, with growth falling to a six-year low of 6.9 percent in the July-September quarter and forecast by the International Monetary Fund to decline further to 6.3 percent this year. That bodes ill for the economy’s ability to generate enough new jobs for the more than 7.5 million students due to graduate from college this year, while also building momentum for a transition from an investment-based economy to one focused on services.

NORTH KOREA                                                

Despite persistent calls for restraint, China’s traditional ally North Korea staged what it claims was a hydrogen bomb test blast on Jan. 6 that sent actual tremors across the border into northeastern China and drew condemnation from Beijing. China now finds itself again under pressure to use any possible leverage with the North to tamp down tensions in northeast Asia, while facing the possibility of more robust security cooperation between South Korea and China’s traditional rivals Japan and the United States.

TAIWAN

Voters on the self-governing island democracy appear set to elect a new president whose party opposes Beijing’s goal of unification between the sides. Beijing’s economic inducements have failed to persuade the Taiwanese public of the benefits of political union. If opposition Democratic Progressive Party candidate Tsai Ing-wen wins Saturday, as she is widely expected to do, Beijing may feel compelled to embark on economic and diplomatic pressure that could send relations into reverse. It’s unlikely that Beijing would go so far as to back up its longstanding threat to use force to bring the island under Chinese control. To know more on this, you can always follow us at https://twitter.com/tradinginvestme

What Is HFT Market Making?

As we have discussed in our earlier articles, the idea of market making is nothing but competing for the lowest bid-ask spread by having the updated data about the public information regarding the demand and supply for a particular security. The HFT market making is also quite same. But the way in which the market makers react for the market data will be different in case of HFT. The high speed data transmission in the HFT will never let the marketer to wait for the data and also will not wait much time for his response. Everything in HFT acts so fast and the decisions must be taken immediately.

Complex Orders and Their Types – Part 2

Many market place systems nowadays are including the support for some complex and special purpose orders. The special purpose orders can be used to implement both the alpha preserving and alpha creating algorithms. Many market places operators have different perspective on having such an option in their venues. Some of their reasons are

• Some of the algorithmic trading strategies can be implemented in a more efficient way if a special purpose order is used.
• By making use of the special purpose orders, the flow of total transaction is lowered and it results in low handling cost.
• On a comparative basis, the functionality of an algorithm is superior in case of the special purpose order than the standardized orders.
• The special purpose orders cause more liquidity in the market.
• The execution risk is removed by the special purpose orders as it offers atom level complex operations.

Strategy Orders

The strategy order is also known as combination order. The strategy order or a combination order will make it possible for the end user to make a combined order. The combined order will look something like this “Buy the X and Sell the Y for a net price of Z”. From the perspective of the algorithmic trading, these types of orders can make the implementation of certain type of algorithms very easy. For instance, so many arbitrage strategies can be expressed easily with the help of combined orders. This will effectively remove the arbitrage possibilities.

For implementing the combination orders in a better way, the market places will usually support the following features:

• Virtual orders are generated in the underlying order books.
• With no execution risk, atomic level execution of the combination order is supported.

Linked orders

It is exactly an opposite of the strategy order in case of its concepts. One order will be linked with the other one in any aspect. Both the legs will be having their individual price and volumes. But when one of the leg volumes is reduced, then the other one also will get reduced proportionally. The linked orders are used to lessen the problems that often arise in case of the alpha creating algorithms. If the marketer is getting a trade on one of the instrument, then he must have to make the changes in the quotes of the other instrument also. If the market maker is making use of the linked orders, then the need of updating is no further required. The market maker can now make a better spread by considering just one instrument at a time.

To know this more in detail, it will be better if you take a certificate in quantitative finance in Singapore from a good trading institute. If you are looking out for a quantitative finance career, then it is better to go with a leading institute that offers the best quantitative analysis course. They also offer jobs for the deserving candidates and they are good in offering a global exposure to their students.

Atlassian has announced the price for their shares now

Atlassian, the famous enterprise software group has recently told about their plan of IPO. As they have mentioned, they started working on it and all their proceedings towards IPO was reported immediately to the reporters and media. But the company has not announced the price of their shares so long. Now the company has also announced the share price. According to the announcement made by the officials of Atlassian, each share will be sold in the market for $21 each. This is really going to be a great success for the Atlassian, said the marketers who were watching the company keenly on their steps.

22,000,000 shares will be sold at a price of $21 each

The Atlassian has planned to sell a total of 22,000,000 shares in this IPO. All these shares belong to class A and are ordinary shares, said the company officials to the reporters. Each of these shares will be sold at a price of $21 to the marketers. The company has also given 30 days extra time for the underwriters. And an additional 3,300,000 shares were allotted for them to buy during this extra 30 days time. The underwriters are allowed to buy the shares at the same price as the other marketers buy during the IPO.

The company is expected to initiate their trade in the NASDAQ by this December 10, 2015 and the shares of the company will be sold in the symbol “TEAM”. There are no existing investor shares being sold in this IPO, said the officials. All the shares sold by the Atlassian now in this IPO are the shares of the company itself and not any existing investor shares. The company is expected to perform the best in this IPO, said many marketers and analysts of NASDAQ, since the industry is doing well now.

The IPO will strictly follow the prospectus

Atlassian has clearly told that the IPO will be strictly following the procedures that have been mentioned in the prospectus provided by the company. Also the company has made it very clear that there won’t be any changes in the procedures during the initial public offering for any cause. The copy of the prospectus can be availed at the lead joint booking running managers and also in the website of Securities and Exchange Commission. The company has also told that a soft copy of the prospectus will be sent to the investors on request through mail.

The Securities and Exchange Commission has made the relative statement effective, which was registered along with the prospectus. Any press release about this IPO should not be containing any offer regarding the IPO or the shares, said the SEC. press releases containing such offers will be considered illegal and also SEC has made it very clear that there should not be any illegal activities regarding the sales and trade. Any such illegal activities found by SEC will be taken severe actions. Thus it is better to follow the prospectus for this IPO.

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Complex Orders and Their Types – Part 1

Many market place systems nowadays are including the support for some complex and special purpose orders. The special purpose orders can be used to implement both the alpha preserving and alpha creating algorithms. Many market places operators have different perspective on having such an option in their venues. Some of those reasons are

Gopro’s IPO Is Under Water Now

GoPro’s shares in the IPO which was traded in the symbol GPRO is now in sales at a very low price. Previously the company shares were sold at a price of $98 each. But now the shares were sold at a price of $24 each. This is considered as the lowest price that the company shares have ever seen after getting into IPO. The marketers said that the market volatility is the major cause for the down fall of the share price. The price of GoPro shares was slipping since august. The investors have shown their grin regarding the fall of GoPro share price.

Factors Behind The Evolution Of Automated Trading In Treasury Market

It is well known that in the recent years the usage of automated trading in the US treasury market has increased a lot. The traditional voice brokerage was largely replaced by the electronic medium now. The trading that occurs in the inter dealer market was on-the-run treasury security, which is completely not in use now. It is entirely replaced by the electronic medium. The on-the-run trading has provided more liquidity in the market and this has now witnessed the most of automated trading, particularly the High Frequency trading much. This article is to discuss the factors behind the growth of automated trading in the treasury market. Some of those factors are discussed below.

Indigo Reports Profits Ahead Of IPO

According to the sources, the India’s largest airline company IndiGo has made a record in its profit, which is ahead of IPO. The company has made a profit of 13.04 billion rupees, which is equal to $196 million. This was a report submitted by the company at the year end, i.e. on March. This is considered to be a record in the company’s history. The profit made by the company this year was ahead of its IPO. The existing investors in the company also feels great about the company’s performance this year, said the sources.

Brazil’s Caixa Unit IPO Concentrates on Investor Interest – Sources

Caixa Economical Federal Bank is one of the leading banks in Brazil which is under state control. It has enough recognition in the country and is trying to gain some more investors interest in favor of insurance unit. Recently, it initiated its IPO for the first time and is now planning to include its insurance unit into it soon to attract numerous investors. Moreover, it is eager to include the unit as soon as possible so that strong interest of investors can be gained out within no time. Along with gain of investor’s interest, bank’s stock market deals may get improved by increasing the number of investors who are willing to deal stakes. Starting this month, bankers and executives of Caixa Economical Federal bank are working on IPO of Caixa Seguridade Participações SA. Not surprisingly, it got succeeded in attracting a large number of investors towards it, especially, in São Paulo, New York and London. Positive feedback got from the investors is the supporting fact of their success in IPO. This deal gained strong belief of investors and shown the strong impact on Brazil’s stock market with sudden changes took place in trading.

Mapping the Algo Trading Across Asia Pacific

The algorithmic trading strategies of Asia Pacific region is still in the phase of growth. Experts in the markets worldwide say that the Asia Pacific region is in the need of more consistency in their regulatory regimes. The markets of Asia Pacific have a great dynamics that shown the inconsistency of the market. This can only be controlled by the regulatory bodies. The promotion of best practices in the markets of APAC tosses the necessity of facilitating the standardization of algorithmic trading and having a control over it. The key features of the APAC markets on whole which gives way for better algo trading and also that affects the electronic medium are discussed below.