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| NASDAQ Exchange |
How online trading system works?
Here I am going to explain how online brokers and trading system works and how they make profit irrespective of order market movements:
Online brokers provide you a very good service, that a customer can trade anywhere using the computer. Nowadays it is easy to trade stocks online, but it is also complicated means how transactions take place and how brokers and other market makers make money out of placing customers' orders.
Let's consider an example of a customer, who has chosen Scottrade as an online broker for trading. He puts an order in computer to buy a hundred shares of IBM at market price and 2 second after he receives conformation that you have successfully bought 100 shares of IBM at $ 125.15 current price.
If we think how did the order place?, where did it go and who is the seller of 100 shares of IBM? Here are some Math starts.
How It All Happens
Scottrade is a discount broker means he is not directly selling or buying
the shares. It is using service of market makers like Knight Capital, UBS, Citadel and Citigroup and route the electronic orders to them and it receives payments for those orders. Where to route the order is decided based on criteria like speed, price, and quality of the service.
Let;s say Scottrade routing that order to UBS as it has selected it based on above criteria. UBS sells Scottrade 100 shares immediately and order was filled and customer owns the IBM shares at $125.15.
Now, how UBS deal with that order as it has already sells those shares of IBM to Scottrade. UBS and other market makers have two options as they can look up their order inventory and try to find a same order of buying 100 shares of IBM and match off its 100 shares of sell order with it. If they can't find the order than they sent an order out to an exchange or in dark pool ( But they have to pay for that ) to buy those shares or most of the times they stay short sell side and wait for a buy order to be in the system. To remain short sell side means they have sold the shares and waiting to price drop a little to buy shares again and turn it in to their profit.
If UBS finds a buy order a penny less means at $ 125.14 and it executes the order then UBS has earned 1 cent profit per share means 1$ for 100 shares order and it pays Scottrade a tenth of a dollar means 10 cents per dollar profit, so it is earning 90 cents. Although figure looks very small, but when you apply this for so many trades and a huge volumes then it turns out to be a huge profit.
Indeed, these types of trades do happen millions of times a day: retail customers interact with online brokers (AmeriTrade, Schwab, ETrade, Scottrade, etc.) who route orders to market makers, who in turn match orders against their own supply or interact with exchanges (NYSE, Arca, NASDAQ, BATS, Direct Edge).
Pump Up the Volume: Connecting Buyers and Sellers
Now let's see how this order might interact with other players. Vanguard is one of the largest mutual fund company in the US and it trades more than 10 million shares of a stock a day, including many shares of IBM. Sauter is Vanguard's Chief Investment Officer
The goal of Sauter and his trading desk is to get the lowest execution cost, and he has several choices when he has to buy or sell stocks like IBM. He can execute a particularly large order manually by directing all or parts of it to specific trading venues. Or, he can bundle orders to buy and sell many different stocks into a "basket" that will be executed as a single computer program.
He can also choose to use an an algorithm and a smart order routing system, which will likely chop up an order to buy or sell a specific stock (like IBM) into small pieces (100 orders of 100 shares each, for example), and will then direct those orders to whatever venue offers the best combination of speed and price.
So it's likely that part of any order to buy or sell IBM will end up in different locations: at a market maker like Knight Capital or UBS, exchanges like the NYSE, NASDAQ, or BATS, or dark pools like Liquidnet.
Clearly, Sauter's trade is considerably more complicated than a customer's buying IBM at Scottrade.
Sauter may include specific instructions on how the order is to be executed. For example, some mutual fund and pension fund managers want to make sure their trades are executed at the Volume Weighted Average Price (VWAP), which is the dollar value of all the shares traded in that stock divided by the volume. This is a measure to ensure that price execution is at least as good as the average.
Sauter says he has an even higher standard for his orders. He wants to make sure that the stock is bought or sold at the price he or his fund managers want to buy or sell it at, not the market price. If a Vanguard fund manager wants to sell IBM at $128.60, for example, he may want his broker to make sure he sells at that price, and not, say, at $128.58 (this is called "implementation shortfall").
Other factors beside speed and price may also influence the decision of asset managers. Some may want to send order flow to a specific firm in exchange for services—analyst research, trader commentary, access to conferences and meetings. In exchange, the firm may provide execution to an asset manager at very low cost.
Tradeworx, a high frequency trading company located in New Jersey. Company trades using statistical arbitrage, where traders are short one security and long another, based on historical performance.
For example, IBM historically trades in a certain relationship with the S&P 500. When it trades above that relationship, Tradeworx system may put in large orders to sell IBM and buy the S&P (all in a fraction of a second) assuming the relationship may revert to its historic mean.
Company trades 50 to 100 million shares of stock a day, including many trades in IBM, Sometimes firm has traded 21 million shares, for a net profit of $7,000.
Tradeworx and other high-frequency traders execute their trades through direct access. The computers are linked to servers very close to those of the major exchanges. Why? Because the pricing inefficiencies last for only a fraction of a second, so speed is paramount.
Bottom Line: Technology, Liquidity, Complexity
So what is happening here? Three customers—Retail Investor, who wants to buy 100 shares of IBM, Sauter, a mutual fund manager who will be buying or selling tens of thousands of shares or more of IBM, and Tradeworx, a high frequency trader who will also be buying and selling thousands (perhaps millions) of shares of IBM—are all interacting in different spaces: in the computers of market makers who match off the orders, on exchanges, and in alternative trading systems like dark pools.
All three of these orders could interact with each other. All three of these customers, in their own way, are adding liquidity—but there are a lot more places for them to trade.
How did things get so complicated? You can blame it on the relentless march of technology and a decision by the SEC to encourage competition among exchanges.
( Source: CNBC )
The service is web-based, with no app to download or registration required, and it taps into the same social graph as Facebook. The idea is to offer a friction-less way to video chat on any platform both with friends and with "people like you" outside your network.
What is Airtime?
Airtime is a new live video service from the creators of Napster. Airtime is many things, but above all, it’s the following:
The best and fastest way to video chat with your friends on any platform. No download required, just login with Facebook and begin video chatting with your friends immediately, right in your browser.
Live content sharing with friends. Everyone on Airtime is both participant and performer. Play YouTube videos for your friends and see their reactions live.
Discover people like you. Break outside your social graph and find people like you based on shared interests.
Airtime is a new live video service from the creators of Napster. Airtime is many things, but above all, it’s the following:
The best and fastest way to video chat with your friends on any platform. No download required, just login with Facebook and begin video chatting with your friends immediately, right in your browser.
Live content sharing with friends. Everyone on Airtime is both participant and performer. Play YouTube videos for your friends and see their reactions live.
Discover people like you. Break outside your social graph and find people like you based on shared interests.
Airtime is drawing a lot of comparisons to Chatroulette-a service to chat with strangers that was the startup du jour back in 2010. Parker says he's aware of concerns, and that Airtime's top focus is "safety." Plus, the fact that the service is built on Facebook means that "the system knows who you are," which should help defeat the flashers which dragged down Chatroulette.
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| Lee Enterpeises |
The stock is soaring in after-hours trading, up $0.29 to $1.44 as of 4:40p ET. That's an increase of more than 25 percent.
The Lee stake is tiny by Berkshire standards, but its particularly interesting because Buffett's company had wanted to keep it secret.
In its May 15 filing listing its U.S. stock portfolio as of the end of the first quarter, Berkshire had said some information was being kept confidential.
Usually, the SEC grants Berkshire's requests for secrecy, but this time it didn't.
Tonight's filing says the request for "confidential treatment" was denied on May 25.
It's a continuation of Buffett's local newspaper play. Lee owns 49 daily newspapers and 300 weekly newspapers. Most of them are in midsize markets, but it also publishes the St. Louis Post-Dispatch.
In November, Berkshire bought Buffett's home-town newspaper, the Omaha World-Herald.
More recently, Berkshire bought 63 newspaper from Media General for $142 million.
Buffett has said that the newspaper business overall is in trouble, but he's optimistic about small to mid-sized newspapers that provide local news and information available nowhere else.
In a letter to all of Berkshire's newspapers less than two months ago, Buffett wrote that he's looking for more papers to buy. "We will favor towns and cities with a strong sense of community, comparable to the 26 in which we will soon operate. If a citizenry cares little about its community, it will eventually care little about its newspaper... It's your job to make your paper indispensable to anyone who cares about what is going on in your city or town."
"This Court notes that according to Mohammedan Law a girl can marry without the consent of her parents once she attains the age of puberty and she has the right to reside with her husband even if she is below the age of 18....," a bench of justices S Ravindra Bhat and S P Garg said.
Citing various Supreme Court judgements on the issue of minor Muslim girls' marriage, the bench said "In view of the above judgments, it is clear that a Muslim girl who has attained puberty i.e. 15 years can marry and such a marriage would not be a void marriage. However, she has the option of treating the marriage as voidable, at the time of her attaining the age of majority, i.e 18 years."
Accepting the 16-year-old girl's plea to allow her to stay in her matrimonial home, the bench has disposed of a habeas corpus petition filed by the girl's mother alleging that her daughter was kidnapped by a youth and forced into marriage in April last year.
The bench accepted the girl's statement she had left her parental home of her own will to marry the man of her choice and her husband should not be booked on the charge of kidnapping.
Meanwhile, to ascertain the girl's well being, the court has directed the couple and in-laws to appear before the Child Welfare Committee once in every six months till the girl attains majority.
"The Committee shall take necessary steps, including obtaining the necessary undertaking from the man(husband) in this regard. Subject to completion of these steps, the girl be allowed to live in her matrimonial home," the bench said.
The girl has been currently residing in Nirmal Chhaya, a government sponsored home for rehabilitation of poor and elderly women.
Abu Yahya al-Libi, a Libyan-born top al-Qaida leader, was killed in a U.S. drone strike in Pakistan earlier this week, a U.S. official said on Tuesday.
U.S. officials said that Abu Yahya had recently been considered by U.S. counter-terrorism experts as the No. 2 in the core al Qaida group led by Ayman al-Zawahiri.
Zawahiri has headed the group since al-Qaida's founder, Osama bin Laden, was killed last year in a U.S. commando raid on his hideout in Pakistan.
A U.S. official said that Abu Yahya "was among al-Qaida's most experienced and versatile leaders" and that he "played a critical role in the group's planning against the West, providing oversight of the external operations efforts."
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Bridgeline Digital Inc and United Parcel Service announced that they have signed a multi-year agreement to offer B2B and B2C eCommerce web stores with an end-to-end offering comprised of Bridgeline's Total eCommerceSM solution and UPS logistics and fulfillment services.
Stock jumped as much as 57 % and trading around $2.38, it has made a 52 week high of $3.28 and retreated from high.
Stock jumped as much as 57 % and trading around $2.38, it has made a 52 week high of $3.28 and retreated from high.  |
Pinterest is goosing up its features this week with language change preferences--quick work for a company so young--and the first to roll out is Spanish. When the new feature kicks in, Pinterest users can change their language setting so everything they view is en español, Pinterest explains in a blog post. Pinterest is also working on translated Pinterest versions in German, Japanese, and Portuguese. But that's not all--though it has a loyal addicted user base in the U.S. midwest, Pinterest seems keen on getting out into the world. In addition the first five languages which will be rolling out soon, in May, Pinterest put out a call fortranslators in more than 20 global languages. It's clear the world is interested too--the lead backer in Pinterest's last $100 million funding round was Japanese e-commerce site Rakuten.
Google To Acquire Instant Messaging Service Meebo
Google will acquire Meebo, the social services company announced in a blog post today. Meebo, a Mountain View veteran that's been around since 2005, first began as a messaging program that allowed users on different instant messaging clients to send each other cross-platform chats. It later expanded to offer a social toolbar service for brands to deeper engage with consumers, as well as an interests-based social networking service for users. Google hasn't yet disclosed what its plans for Meebo are, but the company's offerings to date indicate a Google+ integration could make a lot of sense. Terms of the deal were undisclosed, but AllThingsD reported back in May it would be close to $100 million.
Google Acquires Quickoffice To Develop Native Office Productivity Apps
Google just announced it has acquired Quickoffice, a company that develops a suite of mobile office productivity tools for several platforms, including iOS and Android. The Quickforce team will be working to create native app versions of Google's own suite of popular office tools, such as Google Docs, so users will be able to access and share files across multiple devices. Google recently gave Docs a facelift with a host of new fonts and templates and a Reseach tool. And now that Google Docs lives in Google Drive, native apps make sense as a next step. It's also worth noting the announcement comes two weeks after the rumor mill began churning out news that Microsoft will release its own native Office apps for the iPad and Android devices this fall.
Nintendo Announces New Crop Of Content Partners For Wii U, New Mario Game On Board
At E3 today, Nintendo fleshed out the role of their new gaming console and entertainment hub Will U. They announced a new set of content parters, including Amazon, Hulu, Netflix and YouTube. Making use of the gyros, sensors and other bells that the Wii U controllers are outfitted with, the Wii U system also comes with an updated fitness trainer, Fit U, the newest version of their Wii Fit fitness series. (Yesterday, Microsoft's showed off its new Kinect+Nike Trainer, taking its stab at gamified fitness). Nintendo also announced a new version of its enduring Super Mario Bros. game, aptly titled "Super Mario Bros. U," one of a slew of updated games playable on the system. The Wii U system is estimated to cost about $400 in the U.S
Microsoft: Iran-Targeting Flame Virus Used A Windows Bug In Its Code
Reuters reports Microsoft says that the sophisticated Flame virus used a bug in Windows to help, well, flame the viral fires. The flaw is in code called "terminal services licensing," which lets businesses use more advanced features of Windows and allowed hackers to design Flame to look as if it was authentic, certificate-bearing software from Microsoft. Microsoft has now released an official software tool to fix the loophole, which may prevent Flame from spreading further and halt attempts by other virus writers to exploit the same flaw. Iran has separately said it has developed its own code to prevent Flame from causing damage.
Take control of your world. It’s as easy as downloading an app.
Elphi is the first smart plug built for the 21st century. With it you can monitor, control and even share devices with your friends from anywhere in the world. Simply plug your devices into the Elphi plug and connect them to the Elphi cloud with a free app. Our streamlined setup process usually takes less than sixty seconds. The System has been designed to work with your existing WiFi network so you don't have to buy any additional hardware.
ELPHI GOES EVERYWHERE
The Elphi smart plug can be used to monitor and control all of the things you plug into the wall. it has been using to turn on the espresso machine on the way back from work, for turning on heaters and lights, and to check whether my grandmother is ok by looking at her power usage over time. Elphi is limited only by your imagination.
How does it work?
The Elphi plug and app communicate via a cloud service in real time. The plug uses a dual core Wi-Fi chip to connect to local Wi-Fi networks and is designed to minimize vampire power usage by backing off the relay switch’s coil current via pulse width modulation. The plug’s firmware is also being designed to allow for updates as system improves and evolves.
The app talks to our API and receives push notifications for events such as turning on the plug with the physical button or your friend turning on your lights from his or her phone. We plan to open up the API to users and developers in the near future.
The Elphi cloud is a secure, reliable service that ties together phone apps with the physical devices you use in everyday life. It has been built to handle the constantly fluctuating loads associated with even the most demanding smartphone-driven lifestyle.
Compatibility
The Elphi smart plug is compatible with iPhones running iOS 5.1 and will be compatible with Android shortly.
iPhone 3GS, 4, 4S running iOS 5.1
Android devices running 2.3 and higher
WiFi type 802.11b (also works with b/g/n networks)
Standard 3 pronged U.S. plug (safely powers anything you plug into your wall socket- up to 15amps, or ~1875 watts)
Elphi Features
Its goal is to transform the devices you use into a seamless, virtual extension of yourself. Currently with the Elphi system, you can:
Monitor loved ones (elderly or latchkey kids) by looking at the power use patterns on their devices.
Instantly turn on and off any device from anywhere via smartphone - from your couch or from across the world
Use the button as a manual override if a smart phone is not present
Set timers just like you set your alarm clock on your phone - set your coffee machine to turn on every morning
Location awareness - your phone can notify you or control devices based on your location (i.e. curling iron turns off when you leave the house)
Measure the power usage of any device, and monitor it over time
Plug two Elphi plugs into a single outlet with our space efficient design!
Update Elphi plug firmware from your phone
Synchronize state changes across multiple users’ phones
Automatically turns off if device plugged into Elphi plug is drawing too much power
Elphi is the first smart plug built for the 21st century. With it you can monitor, control and even share devices with your friends from anywhere in the world. Simply plug your devices into the Elphi plug and connect them to the Elphi cloud with a free app. Our streamlined setup process usually takes less than sixty seconds. The System has been designed to work with your existing WiFi network so you don't have to buy any additional hardware.
ELPHI GOES EVERYWHERE
The Elphi smart plug can be used to monitor and control all of the things you plug into the wall. it has been using to turn on the espresso machine on the way back from work, for turning on heaters and lights, and to check whether my grandmother is ok by looking at her power usage over time. Elphi is limited only by your imagination.
The Elphi plug and app communicate via a cloud service in real time. The plug uses a dual core Wi-Fi chip to connect to local Wi-Fi networks and is designed to minimize vampire power usage by backing off the relay switch’s coil current via pulse width modulation. The plug’s firmware is also being designed to allow for updates as system improves and evolves.
The app talks to our API and receives push notifications for events such as turning on the plug with the physical button or your friend turning on your lights from his or her phone. We plan to open up the API to users and developers in the near future.
The Elphi cloud is a secure, reliable service that ties together phone apps with the physical devices you use in everyday life. It has been built to handle the constantly fluctuating loads associated with even the most demanding smartphone-driven lifestyle.
Compatibility
The Elphi smart plug is compatible with iPhones running iOS 5.1 and will be compatible with Android shortly.
iPhone 3GS, 4, 4S running iOS 5.1
Android devices running 2.3 and higher
WiFi type 802.11b (also works with b/g/n networks)
Standard 3 pronged U.S. plug (safely powers anything you plug into your wall socket- up to 15amps, or ~1875 watts)
Elphi Features
Its goal is to transform the devices you use into a seamless, virtual extension of yourself. Currently with the Elphi system, you can:
Monitor loved ones (elderly or latchkey kids) by looking at the power use patterns on their devices.
Instantly turn on and off any device from anywhere via smartphone - from your couch or from across the world
Use the button as a manual override if a smart phone is not present
Set timers just like you set your alarm clock on your phone - set your coffee machine to turn on every morning
Location awareness - your phone can notify you or control devices based on your location (i.e. curling iron turns off when you leave the house)
Measure the power usage of any device, and monitor it over time
Plug two Elphi plugs into a single outlet with our space efficient design!
Update Elphi plug firmware from your phone
Synchronize state changes across multiple users’ phones
Automatically turns off if device plugged into Elphi plug is drawing too much power
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| J P Morgan |
The pretax loss would help cut second-quarter earnings to 65 cents a share, a 30 percent decline from an earlier estimate of 93 cents, Ed Najarian, an ISI analyst, said in a note yesterday. Weaker-than-expected trading and investment banking revenue coupled with mark-to-market private-equity losses will also weigh on results, Najarian said.
JPMorgan Chief Executive Officer Jamie Dimon, 56, said last month the firm lost about $2 billion on trades conducted at its CIO unit, which is charged with managing the bank’s idle cash to earn a profit while minimizing risk. Dimon has said losses could grow and it might take the rest of the year to liquidate the New York-based lender’s trades.
The loss will be “partially offset” by $2 billion in realized security gains, stronger mortgage-banking revenue and so-called debt-valuation adjustments, Najarian wrote. Excluding the trading losses, DVA and securities gains, Najarian estimates second quarter operating earnings per share of 82 cents.
Najarian cut his 12-month price target to $47 a share, from $52, and kept a rating of “buy” on the stock. JPMorgan fell 2.9 percent yesterday to $31 and is down 6.8 percent this year. Kristin Lemkau, a JPMorgan spokeswoman, declined to comment.
