Paying for liquidity provision on exchanges

Market making versus the electronic limit order book Exchanges in India all operate as electronic limit order book markets. There are no `market makers’; there is just a publicly visible limit order book. Anyone is free to supply liquidity, by placing limit orders. The person who places market orders is the consumer of liquidity: . . . → Read More: Paying for liquidity provision on exchanges

Alternative Stock Market Indexes

I saw this interesting article about the mind-share of Nifty as opposed to the BSE Sensex. It is by Samie Modak and Muthukumar K. in the Financial Express.

The NSE data for June 2010 shows that Nifty futures have peaked at Rs.0.36 trillion of notional turnover in a day (27 Jan 2010) and Nifty . . . → Read More: Alternative Stock Market Indexes

Need Better Information for Minority Shareholders

Some examples Siemens Ltd. (14 Jan 2009) sold its IT division to its parent co. and came out with a matter of fact press release to the shareholders and the rest of the world saying it’s divesting a low-margin business. The consideration: Rs.449 crore, for a business that earned Rs.994 crore in revenues and . . . → Read More: Need Better Information for Minority Shareholders

How Will We Know When The Bottom’s In Place?

Okay, so the U.S. is solidly in recessionary territory. The fundamental economic data are lousy, trends are down, consumers and businesses are retrenching, and nobody is happy. We know that, if current forecasts are accurate, the fourth quarter of 2008 will be the worst in terms of economic performance and at least the two . . . → Read More: How Will We Know When The Bottom’s In Place?

Europe at Risk: The Next Possible Round in the Financial Crisis

When the U.S. government refused to bail out Lehman Brothers and no buyer could be found for the tottering investment bank, traders and investors around the world realized something terrifying: their profits—worse yet, their capital—were at risk, and the Fed’s lack of action proved no one was going to save them.

Results Round One

. . . → Read More: Europe at Risk: The Next Possible Round in the Financial Crisis