New York Mag says "we were duped" by $72 million teen trader

 

NEW YORK (CNNMoney)

New York Magazine issued an apology to its readers Tuesday morning, acknowledging the editors were "duped" by the teen stock trader rumored to have made $72 million.

"Our fact-checking process was obviously inadequate; we take full responsibility and we should have known better. New York apologizes to our readers," the note read.

The note was added to the profile of 17-year-old Mohammed Islam, featured as part of the magazine's "Reasons to love New York" issue.

It was the second editor's note in 24 hours. The first came late Monday night after the New York Observerran an interview with Islam in which he admitted to making the story up.

Please read more here.

New York Post: 17 y.o. kid makes $72M trading stocks (on his school lunch breaks)

 

 

By Laura Italiano

He’s the teen wolf of Wall Street.

A kid from Queens has made tens of millions of dollars — by trading stocks on his lunch breaks at Stuyvesant High School, New York magazine reports in its Monday issue.

Mohammed Islam is only 17 and still months away from graduating — but worth a rumored $72 million. “The high eight figures,” is as specific as the shy and modest teen would get when asked his net worth.

Islam bought himself a BMW but doesn’t have a license to drive it. And he rented a Manhattan apartment, though his parents, immigrants from the Bengal region of South Asia, won’t let him move out of the house yet.

Still, the cherubic prodigy is living, and dreaming, large.

Please read more on the New York Post.

University Trading Challenge – North America

The 4th US University Trading Challenge – November 14th 2014

An Educational Competition for Finance and Economic Students

The University Trading Challenge (UTC) is open to full-time students in Finance and Economics programs at any university. The competition has four main components: Real Market Trading Challenge , a Portfolio Trading Challenge, and (2) Case-Study Presentations.  The live portion of the competition (Short-Term Trading and Case-Study Presentations) will take place Friday November 14th, 2014 at Fordham University’s Trading Floor in Bronx New York.

Please see more details here.

Japan's Stock Market Rocked by $617 BILLION "Fat Finger" Trading Error

 

 

Share orders worth several billions of dollars were cancelled in Japan due to a trading error.

At 9:25 am local time, orders for shares in 42 companiestotalling 67.78tn yen ($617bn, £380bn, €488bn) were cancelled, according to data compiled by Bloomberg from the Japan Securities Dealers Association.

The stock orders amount to more than the size of Sweden's economy.

The companies involved in the trading error include Toyota Motor, Honda Motor, Canon, Sony and Nomura Holdings. The biggest order was for Toyota shares at 1.96 billion, representing 57% of the company's outstanding shares, for 12.68tn yen through an off-exchange transaction.

Off-exchange or over-the-counter trades are conducted directly between two parties without supervision of the stock exchange.

"It's not rocket science that there was a fat finger here, but it reopens the question about accountability," Gavin Parry, managing director at Hong Kong-based brokerage Parry International Trading, told Bloomberg.  

Please read more in the International Business Times.

Note: Image credit from Blue Point Trading.

TradeStation EasyLanguage Engineering Job

 

TradeStation currently has an opening for an EasyLanguage Engineer at their Dallas area branch office in Richardson, TX.

The position description is posted in the Careers section of the TradeStation website at http://careers.tradestation.com/en/careers.

If you are interested, you can apply for this position directly via the website and/or send your resume to rdhingra@tradestation.com.

Bloomberg: World’s Biggest Wealth Fund Escapes High Frequency Trading "Flash Boys" in IEX Dark Pool

Photographer: Chris Goodney/Bloomberg

IEX Group Inc. Chief Executive Officer Brad Katsuyama.

Norway’s $880 billion sovereign wealth fund, the world’s largest, is throwing its support behind Brad Katsuyama’s new exchange.

Katsuyama’s IEX Group Inc., made famous inMichael Lewis’s best-selling book “Flash Boys,” could shield investors from the predatory habits of high-frequency traders, said the fund, which holds $521.2 billion in stocks globally and is Europe’s biggest equity investor.

“IEX is a trading venue where all players participate on the same terms,” oil fund spokesman Thomas Sevang said in an e-mailed response to questions. “We support this.”

IEX, which the oil fund uses for both direct and indirect trades, doesn’t pay firms to buy or sell shares, shunning a practice that many markets use to lure business from high-speed traders. It mandates a 350-microsecond delay between requests to trade and executions to prevent traders from pre-empting their moves through high-frequency maneuvers.

Concern about dark pools was amplified after the publication of “Flash Boys,” which portrayed an equities market where exchanges, broker-dealers and high-frequency traders are conspiring to cheat investors.

The book says the firms involved helped rig the $22 trillion U.S. stock market. The story centers around Katsuyama, who was global head of electronic sales and trading at RBC Capital Markets LLC before becoming president and chief executive officer of IEX, and his efforts to shed light on the alleged practice of front-running investors by gathering data on their trades before they’re executed and then acting on that information.

Please read more here.

Bloomberg: $3 Trillion Dollars Erased From Stock Markets in 2 Weeks

 

By Weiyi Lim and Inyoung Hwang

Panic is making an enemy of telephones for Catherine Yeung, the director for equities at Fidelity Investment Management Ltd. in Hong Kong.

“My children hate that BlackBerry,” said Yeung, whose clients have been calling amid two weeks of declines that erased$3 trillion from global stocks. She’s advising calm, noting that profits are rising and shares just got a lot less expensive.

“Being a contrarian and getting in when things seem bad is often a good thing,” she said in an interview today. “The companies we are looking into can still deliver attractive margins. Things are getting cheap.”

Strategists from Goldman Sachs Group Inc. to AMP Capital Investors and JPMorgan Chase & Co. are also telling clients to hang on after losses that began with currencies in Turkey and Argentina spread to developed markets. The Standard & Poor’s 500 Index slid 2.3 percent yesterday, capping its first 5 percent retreat in eight months, while Japan’sTopix index plunged 4.8 percent for its biggest decrease since June.

“We didn’t expect the U.S. would be this weak,” Kathy Matsui, chief Japan strategist for Goldman Sachs in Tokyo, said by e-mail. “Since we do not see sufficient reason to change our fundamental earnings outlook and stock prices have fallen, the market still appears attractive to us.”

Please read more here.

MoneyNews: Billionaires Quietly Dumping American Stocks . . . Fast

By Newsmax Wires

Despite the 6.5% stock market rally over the last three months, a handful of billionaires are quietly dumping their American stocks . . . and fast.

Warren Buffett, who has been a cheerleader for U.S. stocks for quite some time, is dumping shares at an alarming rate. He recently complained of “disappointing performance” in dyed-in-the-wool American companies like Johnson & Johnson, Procter & Gamble, and Kraft Foods.

In the latest filing for Buffett’s holding company Berkshire Hathaway, Buffett has been drastically reducing his exposure to stocks that depend on consumer purchasing habits. Berkshire sold roughly 19 million shares of Johnson & Johnson, and reduced his overall stake in “consumer product stocks” by 21%. Berkshire Hathaway also sold its entire stake in California-based computer parts supplier Intel.

With 70% of the U.S. economy dependent on consumer spending, Buffett’s apparent lack of faith in these companies’ future prospects is worrisome. 

Unfortunately Buffett isn’t alone.

Fellow billionaire John Paulson, who made a fortune betting on the subprime mortgage meltdown, is clearing out of U.S. stocks too. During the second quarter of the year, Paulson’s hedge fund, Paulson & Co., dumped 14 million shares of JPMorgan Chase. The fund also dumped its entire position in discount retailer Family Dollar and consumer-goods maker Sara Lee.

Finally, billionaire George Soros recently sold nearly all of his bank stocks, including shares of JPMorgan Chase, Citigroup, and Goldman Sachs. Between the three banks, Soros sold more than a million shares.

So why are these billionaires dumping their shares of U.S. companies?



Please read more here.