Electronic bond trading revived by Chicago board

Article Abstract:

The Chicago Board of Trade is purchasing the Electronic Joint Venture (EJV) system, an electronic bond trading system used by several major brokerage companies to trade government securities. The system has been used since the Spring of 1991 with little success, and the Chicago Board of Trade hopes that its endorsement will boost the system's popularity. The companies that have used the system include Citicorp, First Boston, Goldman Sachs, Lehman Brothers, Morgan Stanley and Salomon Brother. Companies that use the EJV system can trade government bonds at lower costs for themselves and their customers using a computer network system rather than the old fashioned system of telephones and human interaction. The Board had opposed the system for several years, but has decided to support electronic trading for the near future.

Electronic computers, Information retrieval services, Security & commodity services, not elsewhere classified, Management, Computer industry, Financial services industry, Financial services, Product information, Technology application, Government securities, Bonds, Bonds (Securities), Automation, Electronic Trading System, EJV Partners L.P., Electronic Joint Venture Pertners EJV (Computer system)

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Index arbitrage seems to falter

Article Abstract:

The popularity of index arbitrage trading, the type of program trading most frequently blamed for wild fluctuations in the stock market, has slumped dramatically. During the first two weeks of Nov 1989, only 28 million shares were traded on the New York Stock Exchange as part of index arbitrage strategies. Index arbitrage is a form of program trading that allows traders to attempt to profit from price differences between futures contracts on stock indexes and the stocks themselves. Program trading is defined as any strategy that involves the simultaneous buying or selling of at least 15 stocks. LIT America is responsible for the largest amount of index arbitrage during that period with 6.5 million shares traded; followed by Morgan Stanley & Co with 4.1 million shares.

Analysis, Stock-exchange, Stock exchanges, Stock markets, column, Stock Market, Program Trading (Securities)

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A New Morality Makes Old Deceptions Expensive for Wall Street

Article Abstract:

Since the collapse of Enron, new ethical standards are being applied retroactively to major corporations, and companies such as the Bank of America and American International Group are facing lawsuits and investigations into their financial dealings.

Italy, United States, Commercial Banks, Legal issues & crime, Financial management, Contracts & orders received, FOOD AND KINDRED PRODUCTS, Executive changes & profiles, INSURANCE CARRIERS, Legal/Government Regulation, Contracts & orders let, Business Ethics, Securities & Commodities Services, Securities, Commodity Contracts, and Other Financial Investments and Related Activities, Banking industry, Officials and employees, Company legal issue, Cases, Finance, Food industry, Insurance industry, Investigations, Contracts, American International Group Inc., Contract agreement, BankAmerica Corp., Company financing, AIG, Merrill Lynch & Company Inc., Food and beverage production/distribution software, Parmalat Finanziaria S.p.A.

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