Our editors' picks for the weekend shed light on some darker and more mysterious sides of trading and investment.
Living on the edge
My weekend reading, An Empire of Edge, is a masterpiece of journalism which reads like a thriller. It tells the story of the biggest ever insider trading scheme with abundant information and an eye for detail.
On July 29, 2008, Elan and Wyeth announced mixed results of bapineuzumab, an experimental drug for Alzheimers. This was a watershed moment for investors, and in particular for Steven A. Cohen, whose SAC hedge fund had placed a $750 million bet on the companies providing the drug.
But by the time the announcement flashed on traders’ screens, SAC had miraculously dumped and shorted its shares, pocketing $275 million.
The New Yorker’s Patrick Radden Keefe reconstructs the events leading up to these epic trades, and their grave consequences for all people involved (except for Cohen himself).
I was captivated by the powerful story; gripping conflicts, love and loss, human weaknesses, individuals forced to take risks with huge stakes – all the elements of a compelling drama are there.
But it’s also evoking broader questions about the nature of institutional trading and where one draws the line between legitimate BI and illegal tips. Matthew Marthoma, the portfolio manager who orchestrated the deals, was surely unscrupulous, but he had an eco-system to rely on.
The trades were made on the sly by using dark pools, so even Marthoma's close colleague was unaware of them. Furthermore, he met his inside contact as part of an organized matchmaking between doctors and investors. “It was kind of ridiculous that the hedge-fund business got so much information by asking for favors . . . when it would certainly pay,” as Mark Gershon, the chief executive of the Gerson Lehrman Group, the company arranging these meetings, had it.
Playing by the rules
Everybody loves a good story, especially when it centers on a trading scam or event, however what about your average Joe trader feeling the crushing specter of Regulation beating down on him for crimes he did not commit?
I recently came across an interesting LinkedIn post by Patrick Rooney, a Product Marketing Manager at Trading Technologies, called 'That Tap On the Shoulder', which depicted his revelations over a WSJ report of a trader recently suspended after employing a risky trading strategy.
Listen, if you give a mouse a cookie, it's supposed to ask for a glass of milk, so why is it unreasonable for trading experts and specialists to try and blur the lines of Risk Management? I find it interesting that proper trading and risk management habits remain a focal point for the financial industry after a laundry list of recent trading upheavals, scams, etc. Why? Because most of these phenomena simply fade into myth after a few years (probably one reason why they always repeat themselves with regularity), leaving many to push the envelope or scope out any wiggle room that exists.
Were this the 1990s I do not think that anyone, notwithstanding any leading trader at even the most heavily fined bank in the US, would be chastised or governed by any framework – simply put we live in a different world today, as well as a differently regulatory climate. Is this a problem? It depends who you ask.
Its hard to turn on a TV without hearing about Wall Street corruption, or how regulations are stifling small businesses and brokerages. However, the fact that your run-of-the-mill trader or hedge fund specialist is facing the cold reality of a regulated world is certainly proof of the times.
El-duderino strikes again
Who’s the mysterious investor that's intimidating traders at Borsa Istanbul? According to a local media report that was picked up by Bloomberg, an elusive trader named "the Dude” after the cult movie hero played by Jeff Bridges in The Big Lebowski, is causing chaos on the Turkish market by placing enormous bets, making the market highly volatile for his own gains.
The Dude’s first day trade totaled $450 million, almost double the market daily average. Since that day, he has moved his business from one brokerage to another until landing, for now, on the lap of Yatirim Finansman.
Reading this story made me think about how the high-tech, fast-paced, worldwide financial community that we write about can still be manipulated by one single, sophisticated individual. While local regulators and frightened traders wonder whether the source of the bets is some robo-trader or human mind, on one thing they all agree: he’s acting very undudelike!
My weekend reading, An Empire of Edge, is a masterpiece of journalism which reads like a thriller. It tells the story of the biggest ever insider trading scheme with abundant information and an eye for detail.
On July 29, 2008, Elan and Wyeth announced mixed results of bapineuzumab, an experimental drug for Alzheimers. This was a watershed moment for investors, and in particular for Steven A. Cohen, whose SAC hedge fund had placed a $750 million bet on the companies providing the drug.
But by the time the announcement flashed on traders’ screens, SAC had miraculously dumped and shorted its shares, pocketing $275 million.
The New Yorker’s Patrick Radden Keefe reconstructs the events leading up to these epic trades, and their grave consequences for all people involved (except for Cohen himself).
I was captivated by the powerful story; gripping conflicts, love and loss, human weaknesses, individuals forced to take risks with huge stakes – all the elements of a compelling drama are there.
But it’s also evoking broader questions about the nature of institutional trading and where one draws the line between legitimate BI and illegal tips. Matthew Marthoma, the portfolio manager who orchestrated the deals, was surely unscrupulous, but he had an eco-system to rely on.
The trades were made on the sly by using dark pools, so even Marthoma's close colleague was unaware of them. Furthermore, he met his inside contact as part of an organized matchmaking between doctors and investors. “It was kind of ridiculous that the hedge-fund business got so much information by asking for favors . . . when it would certainly pay,” as Mark Gershon, the chief executive of the Gerson Lehrman Group, the company arranging these meetings, had it.
Playing by the rules
Everybody loves a good story, especially when it centers on a trading scam or event, however what about your average Joe trader feeling the crushing specter of Regulation beating down on him for crimes he did not commit?
I recently came across an interesting LinkedIn post by Patrick Rooney, a Product Marketing Manager at Trading Technologies, called 'That Tap On the Shoulder', which depicted his revelations over a WSJ report of a trader recently suspended after employing a risky trading strategy.
Listen, if you give a mouse a cookie, it's supposed to ask for a glass of milk, so why is it unreasonable for trading experts and specialists to try and blur the lines of Risk Management? I find it interesting that proper trading and risk management habits remain a focal point for the financial industry after a laundry list of recent trading upheavals, scams, etc. Why? Because most of these phenomena simply fade into myth after a few years (probably one reason why they always repeat themselves with regularity), leaving many to push the envelope or scope out any wiggle room that exists.
Were this the 1990s I do not think that anyone, notwithstanding any leading trader at even the most heavily fined bank in the US, would be chastised or governed by any framework – simply put we live in a different world today, as well as a differently regulatory climate. Is this a problem? It depends who you ask.
Its hard to turn on a TV without hearing about Wall Street corruption, or how regulations are stifling small businesses and brokerages. However, the fact that your run-of-the-mill trader or hedge fund specialist is facing the cold reality of a regulated world is certainly proof of the times.
El-duderino strikes again
Who’s the mysterious investor that's intimidating traders at Borsa Istanbul? According to a local media report that was picked up by Bloomberg, an elusive trader named "the Dude” after the cult movie hero played by Jeff Bridges in The Big Lebowski, is causing chaos on the Turkish market by placing enormous bets, making the market highly volatile for his own gains.
The Dude’s first day trade totaled $450 million, almost double the market daily average. Since that day, he has moved his business from one brokerage to another until landing, for now, on the lap of Yatirim Finansman.
Reading this story made me think about how the high-tech, fast-paced, worldwide financial community that we write about can still be manipulated by one single, sophisticated individual. While local regulators and frightened traders wonder whether the source of the bets is some robo-trader or human mind, on one thing they all agree: he’s acting very undudelike!
Institutional FX Demand Continues to Climb in April
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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