Finance Trading

Zix Corporation to Present at the Noble Financial Equity Conference

2008-08-19T10:02:00.000-07:00

DALLAS, Aug 18, 2008 /PRNewswire-FirstCall via COMTEX News Network/ --
Zix Corporation (ZixCorp(R)), (Nasdaq: ZIXI), the leader in hosted services for email encryption and e-prescribing, announces that Zix Corporation's Chief Executive Officer, Rick Spurr, will present at the Fourth Annual Noble Financial Equity Conference at 8:00 a.m. (Pacific) on Tuesday, August 19, 2008 at the Loews Lake Las Vegas Resort, Nevada.
Mr. Spurr will give a 23-minute presentation regarding ZixCorp's market positioning, financial performance, and strategic direction. The presentation will be webcast LIVE featuring high-definition, streaming video and PowerPoint slides. Access is available by logging on to the conference website http://www.noblemadmax.com or by going to the Investor portion of the Company's website at http://investor.zixcorp.com. It is recommended that interested parties register at least 15 minutes prior to the start of the presentation to ensure timely access.
About Noble Financial
Noble Financial is a privately-held, full-service capital markets firm driven by what is often overlooked by other firms -- uncovering the value embedded in the orphaned, undiscovered or misunderstood company. The company focuses on converting market inefficiencies into profit opportunities. Noble Financial supports emerging companies through strategic advice, investment banking, market-making, sales & trading, comprehensive equity research, and the development of institutional support. Noble Financial's equity conferences -- 2008 marks their fourth annual -- allow for a unique blend of professional and personal interaction among a diverse cross-section of executives. The company has operated for 24 years and has offices in Florida, New York City and Boston.
About Zix Corporation
ZixCorp is the leading provider of easy-to-use-and-deploy email encryption and e-prescribing services that Connect entities with their customers and partners to Protect and Deliver sensitive information in the healthcare, finance, insurance and government industries. ZixCorp's hosted Email Encryption Service provides an easy and cost-effective way to ensure customer privacy and regulatory compliance for corporate email. Its PocketScript(R) e-prescribing service saves lives and saves money by automating the prescription process between payors, doctors and pharmacies. For more information, visit http://www.zixcorp.com.

Financial Violators Banned From Working

2008-08-15T04:50:00.000-07:00

Executives caught breaking financial regulations will be banned from working in the financial industry for five to 15 years depending on how serious their illicit acts were, financial authorities said. At present, only those who have been sentenced are not allowed to work for the maximum period of five years in the industry, thi comes as the Financial Services Commission (FSC) announced plans Wednesday to toughen disciplinary measures against financial firms or executives who committed business irregularities such as stock price manipulation, insider trading and embezzlement.
It said this is part of efforts to maintain order in the financial market for efficiency and soundness.
The regulator noted that not only will it sternly penalize such executives under the disciplinary measures, but will also hold companies' major shareholders responsible for violating financial laws.
Furthermore, the regulator plans to disclose the names of financial firms, executives and shareholders who have been disciplined and penalized on the Internet homepages of the commission and the Financial Supervisory Service, a financial investigative body. he official added that the regulatory body will follow the practices of the United States and Britain where their financial authorities also disclose names of offenders on their Internet homepages.
However, it will toughen its disciplinary practices throughout the industry ― not only the banking, securities and insurance sectors but also credit finance, mortgage and other special purpose businesses.
For instance, the commission will immediately respond to a financial holding company that incorporated a subsidiary without prior regulatory notices by enforcing a penalty.
The financial authority plans to submit the final revision on disciplinary measures to the National Assembly by the year's end, after holding a public hearing to gather opinions at the end of this month.

India, U.K. to undertake joint study on trade barriers offer

2008-08-15T03:17:00.000-07:00

India and Britain on Tuesday agreed to undertake a joint study on ways to remove non-tariff barriers in bilateral trade following talks between Finance Minister P. Chidambaram and the Chancellor of the Exchequer, Alistair Darling, here as part of the ministerial-level India-U.K. Economic and Financial Dialogue.

The study would also cover domestic regulations in services in the two countries, a joint statement issued after the talks said.

The two sides expressed deep disappointment over the collapse of the last round of Doha talks and emphasised the need to find a way forward.

“We are deeply disappointed by the recent pause in the Doha Development Round talks. Today we discussed the way forward. We urge all parties to show greater flexibility to agree on free and fair trade rules that deliver a balanced result for the world’s poor and the global economy. Bilateral initiatives will also be important, and we are pleased to announce that the U.K. and India will undertake a joint study into non-tariff barriers, including domestic regulations in services, to trade between India and the U.K. and how they could be removed. We also acknowledge the promising beginning to our work on intellectual property as joint co-chairs of the Intellectual Property Rights and Innovation work stream within the G8 Heiligendamm Process,” the statement said.

It said the two sides believed that open markets, operating through a free and fair trading regime, would be “crucial” for overcoming the challenges facing the global economy.

“Both India and the U.K. share a strong commitment to a multilateral, rules-based trading system and an open and transparent investment regime,” it said.

A spokesperson of Indian High Commission said that a host of global macro-economic issues were discussed in the context of the rising fuel, food and energy costs. Climate change and enhancing cooperation in the filed of renewable sources of energy was also discussed and it was decided that the two countries would work together to reduce pollution without compromising growth and development.

Mr. Chidambaram

Options on Cubs Post Season Tickets

2008-08-15T03:11:00.001-07:00

The Chicago Tribune recently had an article about fans who are paying options for Cubs post-season tickets, including $99 for an option to buy Cubs World Series tickets - which may or may not become a reality (the Cubs last went to the World Series in 1945).

The website, FirstDibz.com, acts as a middle man between the option buyer and the option seller (a season ticket holder).

If the Cubs do not go to the World Series, then the option buyer is out $99, and the seller gets the money (less FirstDibz.com's 17% cut).

If the Cubs do go to the World Series, then the option buyer gets the tickets, and is charged the face value price.

The buyer is risking the premium and, in return, gets a chance to buy tickets at face value that would cost a lot of money through ticket brokers.

Why would the season ticket holder sell an option rather than wait and sell the ticket through a ticket broker for more money?

Because, while they could get more money by selling through a ticket broker, that would only happen if the Cubs actually make it to the World Series. This way, they make money even if the Cubs get eliminated.

BEAR STEARNS CONTINUES EXPANSION IN ASIA

2008-07-13T03:27:00.000-07:00

Bear, Stearns Asia Limited has broadened its structured equity product offering in Asia with three new hires in Hong Kong.

New services include synthetic equity finance, such as equity swaps and other derivative-based instruments, and a synthetic prime brokerage service to handle financing and execution. Dan Azzi joins the firm as a managing director responsible for equity finance trading, synthetic prime brokerage and market access products designed to make entry into Asia's emerging markets easier.

IFC: Smaller Business Will Benefit from IFC’s Trade Finance Program in Mongolia

2008-06-15T03:44:00.000-07:00

Under the agreement, TDB will be able to issue various trade finance instruments guaranteed by IFC up to the amount of $5 million for tenors up to 3 years, allowing the bank to be more active in financing its clients’ international trade activities. IFC is the private sector arm of the World Bank Group. Its $500 million Global Trade Finance Program promotes trade with emerging markets worldwide by supporting flows of goods and services to and from developing countries. Through the program, IFC provides guarantee coverage of bank risk in emerging markets, allowing recipients to expand their trade finance transactions within an extensive network of countries and banks and to enhance their trade finance coverage.
The signing of this agreement is an important part of TDB’s strategy to diversify and develop its financial services and banking products.
Richard Ranken, IFC’s director for East Asia said, “TDB’s participation in the Global Trade Finance Program will provide a boost to trade and investment in Mongolia. Through the program, IFC will support Mongolia’s small and medium enterprises, which rely on imports of machinery and equipment to grow their businesses.”

Z Trim Sees Benefit in Move to OTC Trading Arena

2008-06-12T04:43:00.000-07:00

MUNDELEIN, Ill., Aug 13, 2008 /PRNewswire-FirstCall via COMTEX/ -- In a move that will improve management control of the company, Z Trim Holdings, announced today that it intends to file an application with the Securities and Exchange Commission concerning its voluntary withdrawal of its common stock from listing on the American Stock Exchange and seeking withdrawal of registration of its common stock under Section 12(b) of the Securities Exchange Act of 1934. Z Trim anticipates that the application with the SEC will be filed on Monday August 25, 2008 and the voluntary withdrawal will take effect on Thursday September 4, 2008. The Company is currently working with a sponsoring market maker to complete the process to qualify trades in the Company's common stock to be quoted on the Over-the-Counter Bulletin Board.

The decision follows an examination undertaken by Z Trim management comparing the types of benefits generally realized by a listing on Amex versus the status of Z Trim Holdings currently.

While there are benefits of an Amex listing for companies that fit a particular profile, we are realizing no particular benefit at this point in our life cycle," said Brian Chaiken, the company's Chief Financial Officer. "The direct and indirect costs of such a listing in terms of finance, working capital, human resources and time can be more efficiently managed as an OTC company. Significantly, this move allows us to more quickly and easily gain access to financing for working capital.

We recognize that at first glance this move from Amex may not appear to be positive to all," Cohen said. "After thorough examination of all information before us, however, it is readily apparent that the added expenses relating to maintaining our listing status do not fit with current management's goal of concentrating all of our resources on building our business," he added. "We are committed to executing our business model, achieving profitability and maximizing shareholder value. As we continue to successfully execute our plans, we will reconsider joining an exchange."

Badr Al Islami launches a Shariah compliant product to finance trading in listed shares

2008-05-29T03:26:00.000-07:00

Badr Al Islami managed to secure approval of its' Shariah Board for this innovative product, which is the first of its' kind in the UAE.
The team of experts in Islamic financing in Badr made great efforts to introduce this service, making it easy for investors to use and benefit from. All the procedures were fully approval by the Shariah Board on all the details of the product.
Mr. Mobasher Khokhar, CEO of Badr Al Islami said: 'The success of any Islamic finance company is based on innovation and introduction of new services, keeping in line with Islamic Banking rules and regulation. We believe this new services will be successful for it gives the investors the flexibility and strength to invest in the stock market'.

Taha Ahmed Eltayeb, Vice President, Badr Al Islami, said: 'Before the introduction of this service to our clients, we have considered that the clients' funds are safe in case of serious loss due to fall in stock market prices. With this service we delegate client to buy and sell share. Re -payment period, which is between one month and twelve months, gives the client flexibility in controlling their trading. We made sure our product is clear and simple for our investors to use.'

High tertiary enrolment rates

2008-04-20T04:39:00.000-07:00

The Paymaster boss went on to say that her research shows that all the countries which have recorded significant increases in their per capita income and improvement to their living standards have high tertiary enrolment rates.

A high tertiary enrolment rate means that the number of students in the age group 17-24 enrolled in tertiary institutions is rapidly increasing. In Japanese cities such as Osaka and Tokyo it has already exceeded 50 per cent.

"We should also note that the economic development which has taken place in the fast growing economies has been consistent with their cultural and social development. These countries have at least one thing in common - all have a vested interest in producing a highly educated workforce. A commitment that has helped to ensure the growth and development of a strong middle class and a cadre of thinkers and knowledge purveyors, bred for strong decision-making and leadership," said Marks.

Online Trading Academy Opens First Colorado Campus

2008-04-18T04:57:00.000-07:00

With the goal of empowering Coloradans to master and manage their own financial future, Karen Trisko and Bob Montgomery announce the Grand Opening of Online Trading Academy with its first Colorado campus, located at 900 W. Castleton Rd., Suite 200, in Castle Rock, CO 80109, on August 6, 2008 from 5:00-7:00pm. Featured keynote speaker, Chief Knowledge Officer John O'Donnell, who has frequently appeared on CNN, FNN, CNBC, Wall Street Journal, CNNfn, Marketwatch and at many global finance expos, will share his expertise on "What to do in this economic down market," a top concern of every investor today.

O'Donnell has been instrumental in establishing the California-based Trading Academy around the country and internationally as a premier financial education center, teaching adults the art of successful trading since 1997. Online Trading Academy offers personal hands-on programs with an unusual advantage: Students learn in an actual LIVE trading environment USING Online Trading Academy's cash. Online Trading Academy is also the ONLY Professional Trading Education provider partnered with NASDAQ-NYSE.

President Karen Trisko, MBA, brings two decades of career experience in corporate performance consulting and co-authored the book "Off the Chart Results" with Warren Bennis. Says Trisko, "My eyes were opened to the benefit of trading when I discovered that I could learn to trade in all market conditions, avoid mistakes many people make, SURPASS my financial broker's results, and enjoy a positive outcome with my personal finances."

General Manager Bob Montgomery added, "Through trading, I was able to trade a demanding and stressful corporate job for a flexible, enjoyable lifestyle.

With thousands of graduates worldwide, Online Trading Academy offers professional instruction from experienced Wall Street professionals, as well as a wide array of beneficial home study materials to supplement classroom education across a spectrum of trading styles and instruments including: Day Trading, Swing Trading, Position Trading, and Investing in Stocks, Options, Futures (E-minis & Commodities) and Currencies.

Receipts from the gaming industry could finance our education transformation

2008-03-05T04:39:00.000-08:00

The gaming industry, particularly casinos, has incurred the fury of the clergy and those who feel that it will be yet another blot on Jamaica's moral landscape. The Minister of Tourism, Ed Bartlett, has met opposition to his suggestion to add a gaming component to his grand plan for tourism in Jamaica.
Marks says there already exists an almost inevitability about casino gambling in Jamaica with forms of it already in place in many hotels and gaming lounges. Supreme Ventures' Acropolis readily comes to mind.

Addressing the issue she said: "It surely is not beyond us as a people to put infrastructure in place which would minimise the deleterious effects of casino gambling, while maximising its benefits. One suggestion would be to specify a minimum investment to have this facility, as part of the major developments in our tourism attractions. The revenue derived there could be another way to finance the education transformation that is needed, and for which both Government and Opposition agrees that the financial resources do not exist to tackle at present."

Many other countries in the region have embraced casino gaming and have used it to bolster their economies.
"Last week we saw where the Bahamas has just garnered another massive investment from top hospitality developer Harrah's and Starwood to the tune of US$2.6 billion and the last time I checked people were still having a good, safe standard of living," in the Bahamas. What are we afraid of?" said Marks.

Currency trading and the gaming industry can benefit the Jamaican economy - Marks

2008-02-12T04:35:00.000-08:00

She was the special guest speaker at the University Council of Jamaica's launch of the fourth Quality Assurance in Tertiary Education Week, held at the Terra Nova Hotel, in Kingston on Tuesday.

Marks stressed the need for greater dialogue between the private sector and the universities to determine areas of tertiary training and the need to mobilise the necessary resources needed.

"The speed with which the currency trading financial sector, now commonly called the 'alternative investment scheme', has attracted clients and mobilised savings indicates its potential as a positive contributor to the Jamaican economy," said Paymaster's managing director.

Many of the schemes have ran afoul of the main regulatory body, the Financial Services Commission (FSC), and after many protracted legal battles and skirmishes with the banks are now making efforts to obtain the requisite licences. The alternative investment schemes have redefined the financial landscape in Jamaica and the legislative and financial framework to monitor them is at best nebulous.

This point was not lost on Marks who noted the difficulties being experienced within such a short time as a result of an inadequate regulatory framework and a lack of knowledge of the parameters within which the sector operates, which suggests an urgent need for more suitable trained human resources both in the government institutions and the media.
Marks declared, "There must be an understanding of the difference among currency trading, a trillion-dollar global business investment and various other schemes.

"We must keep in mind that the nature of the financial system is that the regulators are always lagging behind developments taking place in the sector. What has to be done is to regulate with a view to ensure transparency and in as much as is possible financial probity, but not to stifle creativity and entrepreneurship.

ISU Dedicates Financial Trading Room

2008-02-11T04:31:00.000-08:00

A slice of Wall Street has come to Indiana State University with the grand opening today (Nov. 15) of a Financial Trading Room.

Housed on the first floor of the College of Business, the trading room features multiple stock tickers, three video data walls and 24 student work stations with dual monitors.

"The financial trading room provides access to a variety of professional financial databases and enlivens the environment of the College for faculty, staff, and students," said Nancy Merritt, dean of the College of Business.

"Students do a lot of research in preparing for their classes, so this is a hands-on trading room that has been built very similar to what companies have in the major marketplaces," Bruce McLaren, associate dean of the College of Business, said. "In Indiana, this type of room is quite rare. There are only a handful of schools that are using trading rooms."

The trading room will help jump-start the professional careers of finance and financial services students, Amit Sinha, assistant professor of finance, said. In addition to offering a finance major, the College of Business recently launched a new financial services major at ISU to prepare students in a variety of fields, including investments, banking, and insurance.

"This room has two components, investments and trading," Sinha said. "In the investment component, students will get an idea of what to invest in and will learn how to implement investments through a trading process. To be in an academic environment and get that experience, our students will become that much more competitive in the job market."

Members of ISU's Student Investment Club have already shown their expertise by managing a real $110,000 portfolio that recently grew in value by approximately 10 percent in just six weeks. Club members say the trading room may help them do even better in the future.

"I was excited when I first heard that it was going to be built and that it gives the environment of real live trading. There is a lot of detail that goes in to investing. Having the tickers and the information available at eye level motivates you to dig deeper. It's a wonderful opportunity," said club President Bobbie Jackson, a finance and economics major from Detroit.

"Having the trading room will motivate more students to come in and work in such a great environment. The investment club involves a lot of teamwork. The more information we have, the better we will do, and the more members we get the more information we will have," added Mansour Alturki of Terre Haute, a senior finance major and the club's vice president.

The trading room and its operations are funded in part by gifts from Randall and Nancy Minas and Lilly Endowment Inc.

"Because it's one of the few in the country, the Financial Trading Room gives students at ISU a good head start with the tools that are needed to come out of college more prepared than most for the financial world," said Randall Minas, a senior vice president with Merrill Lynch in Merrillville.

"The dynamics have changed dramatically since I started in 1976.
They*re far more complex, far more global in nature and there are far more variables that affect the financial markets on a minute-to-minute basis. The data feed and information provided the center are state-of-the-art and tend to be up to date with the information as well as the ability to use the information to arrive at investment strategy and following that strategy to conclusion," Minas said.

"It has been very exciting to see the Trading Room go from paper, from just a thought, to realization in such a short time. It's going to be such a benefit to all students," Nancy Minas added.

In January, the Minases announced a $150,000 gift to the ISU Foundation to support investment and financial education programs. A 125 percent match by Lilly Endowment brought the total value of the gift to $337,500. The Student Investment Club will be investing the gift in conjunction with the club advisor, Dr. Tarek Zaher, professor of finance, and the ISU Foundation. Randall Minas indicated the gift was the first in a series of gifts to be used for support of financial education in the ISU College of Business.

Randall Minas and the couple's daughter, Dawn, owner/operator of the Culver Coffee Co., are both ISU alumni.

The Evolving Exchange System

2007-12-21T04:28:00.000-08:00

Georgetown's Angel credits the quality of the market trading systems, which were able to process 5 billion shares in a single day. "One of the great advantages of having multiple competing exchanges is it forces them to be on their toes to be able to handle volume when it comes in, or else they'll lose market share to their competitors."

In looking at other "bad market days," when the 30-stock Dow Jones industrial average is down 2% or more, dating back to October, 2002, Birinyi Associates found that trading volume topped the 50-day moving average only half of the time.

Chris Johnson, chief investment strategist with Johnson Research Group in Cincinnati, says he's not surprised by how few record-breaking-volume days there have been in recent years. That's because of the range of alternative trading venues that people have migrated to, siphoning off volume that previously would have been on the major exchanges.

Dark Pools Muddy the Waters

2007-12-09T04:30:00.000-08:00

Big institutional players like brokerages, for example, that don't want to disclose their trades prefer to make a market for each other's bids and asks through internal networks known as dark pools. Johnson doesn't know how volume of trades done through dark pools compares with volume on the open market.
"A lot of institutional money is going through these dark pools. With hedge fund activity, dark pool activity has grown significantly," he says. "Hedge funds don't want to reveal trading strategies or holdings. If you're operating through the open market, that information can be pieced together."
No matter how the trades are done, if volatility stays strong as some experts predict, the major exchanges should benefit.

Survey of market risk trading.(

2007-11-19T04:21:00.000-08:00

RMA surveyed 45 global institutions to capture the environment for market trading activities and counterparty credit risk. Participants related how their institutions approach organizational structure, data collection, measurement techniques and methodologies, valuation practices, scenario analysis, limits setting and reporting, actual risk measurement results, and capital allocation. Information gathered on counterparty risk include methodology, credit standards, netting, derivatives trading supported by collateral, derivatives trading with re-couponing, early-termination clauses, repo trading, and credit risk IT structure and architecture. The complete results of the survey were sent to the participants.

During the spring of 2006, RMA's Market Risk Council conducted RMA's first Trading Activities and Counterparty Risks Survey to determine the current state of practice and planned developments. The survey is part of an ongoing, long-term RMA effort to identify best practices and provide an ongoing benchmark to help RMA member institutions understand market risk. Forty-five large institutions based in North America, Europe, Australia and Asia participated in the Web-based survey, which resulted in a 330-page final report. Specifically, the study was designed to provide:

1. A benchmark by which participants can review the best practices of trading activities and counterparty risks.

2. A better picture of how institutions use technology to measure and monitor risk.

3. An aid to member institutions as they assess of the state of trading activities and counterparty risk metrics.

4. The basis for further exchange of information.

Market Risk Trading Activities

Information on market risk trading activities obtained from participants encompassed organizational structure, data collection, measurement techniques and methodologies, valuation practices, scenario analysis, limits setting and reporting, institutions' actual risk measurement results, and capital allocation.

Auto-Finance Bonds Thriving

2007-09-13T04:16:00.000-07:00

The auto sector in the corporate bond market got a lift after Cerberus Capital Management L.P. said it planned to take an 80.1% stake in Chrysler Group, but many zeroed in on GMAC since it is also controlled by the investment firm.

Cerberus bought a 51% stake of GMAC from former parent General Motors Corp. last year.

So-called captive auto finance arms, which have been deeply tied to the auto makers for decades, have been a solid source of profitability for Detroit even as the core fundamentals of the auto industry have withered.

Exchanges Benefit from Record Volumes

2007-07-15T04:21:00.000-07:00

Market volatility escalated and trading volumes set new record highs this week, totaling 10.59 billion shares on the three major stock exchanges on July 26 alone. That was 34% above the previous record from earlier this year and a sign of increasing skittishness among investors. The heightened volatility comes as investors digest mounting evidence of a credit crunch and deeper housing market woes that could spell trouble for the broader economy in the months ahead. The 4.9% drop this week in the Standard & Poor's 500-stock index was its biggest decline since September, 2002, while the NASDAQ composite index and Dow Jones industrial average logged their largest losses since March. However, bucking the downdraft were shares of major exchange companies such as Chicago Mercantile Exchange (CME), the New York Stock Exchange Euronext (NYX), and the InterContinental Exchange (ICE), which rose on July 27 on news of the record volumes.

HK's finance know-how benefits China

2007-07-06T04:13:00.000-07:00

These days you cannot talk about global finance without talking about China. China is the world's fastest growing large economy, has the world's largest population, and is increasingly becoming more open and accessible to international business.

There are also a growing number of investors in the Mainland with a considerable appetite for making money. Many of these investors are looking further afield, many to Hong Kong, for the tools to make their next investment.
Hong Kong is already a global financial centre. We already have the institutional software, the market infrastructure, the knowledge bank, and the entrepreneurial flair to operate effectively on a local, regional and international level.

One example is our banking sector. Hong Kong has been a magnet for bankers for many years, and is now home to about 70 of the world's 100 largest banks. A high standard of transparency and disclosure, and zero tolerance towards corruption, are high on the list of reasons why banks like Hong Kong.

It is not just international banks that have a fondness for this city. Mainland banks have been hitting the headlines recently with some high-profile listings on our stock market. These include the Bank of China, the Bank of Communications and Industrial & Commercial Bank of China. They have tapped Hong Kong's market for capital and know-how. They are predominantly domestic banks now. They may well become global banks in the future.

Seeking Mutual Benefit and Common Development with Other Countries

2007-05-27T04:07:00.000-07:00

China cannot develop independently without the rest of the world. Likewise, the world needs China if it is to attain prosperity. Following the trend of economic globalization, China is participating in international economic and technological cooperation on an ever larger scale, in wider areas and at higher levels in an effort to push economic globalization towards the direction of common prosperity for all countries. Today, the mainstream of international trade is to share successes, with all as winners. China adheres to its opening-up strategy for mutual benefit. For this, it has made conforming to China's own interests while promoting common development a basic principle guiding its foreign economic and trade work, develops its economic and trade relations with other countries on the basis of equality, mutual benefit and reciprocity, and makes constant contributions to the sustained growth of global trade.

China has been an active supporter of and participant in multilateral trade system. Since its accession to the WTO in December 2001, China has strictly kept its commitments to create more favorable conditions for international economic and technological cooperation. China has sorted out and revised some 3,000 laws, regulations and department rules, continually improved its foreign-related economic legal system, and enhanced the transparency of its trade policies. China has cut its customs tariffs step by step, as promised, and by 2005 its average tariffs had been reduced to 9.9 percent, and most non-tariff measures had been cancelled. Banking, insurance, securities, distribution and other service trade sectors have opened wider to the outside world. Of the 160-odd service trade sectors listed by the WTO, China has opened more than 100, or 62.5 percent, a level close to that of the developed countries. China has actively pushed ahead with a new round of multilateral trade negotiations, participated in talks on various topics, especially on agriculture, market access of non-farm products and the service trades, and played a constructive role in helping developing and developed members reduce disputes through talks. China, together with other WTO members, has done a lot of work to spur substantial progress to reach early agreement among the negotiators.

Record-Breaking Activity

2007-05-19T04:27:00.000-07:00

The New York Stock Exchange measures market activity by the number of investor messages it processes in any given day, as opposed to the number of shares traded. On July 26, the NYSE processed 695 million messages, a 27% jump from its previous record of 548 million messages processed a day earlier. The NYSE Group, which includes the Archipelago Exchange it acquired last year, traded 5.1 billion shares on July 26, its second-most-active day after setting an all-time record of 5.19 billion shares on June 22.

The NASDAQ Stock Market reported 1.7 billion messages processed on July 26, up 42% from the prior record on Feb. 27, and it entered a record 326 million orders, a 59% jump from the previous high in February.

Cleveland Rueckert, a research analyst at Birinyi Associates in New York, believes volatility was the key contributor to the record trading volumes on July 26. "With the whole subprime thing, and the financial sector sort of falling apart, you have people who are getting nervous," he says.

Corporate earnings are affecting trading decisions, as is the approach of the end of the month, when mutual funds disclose performance information to investors. That's likely spurring portfolio managers to lock in profits by selling stocks they think have topped out, Rueckert says.

China rules out major currency moves ahead of Washington talks

2007-04-05T03:59:00.000-07:00

BEIJING: Chinese officials on Tuesday ruled out major changes demanded by U.S. lawmakers in Beijing's currency controls ahead of a high-level meeting and called on critics in Congress not to politicize trade disputes. Beijing is making progress in allowing its currency to trade more freely, but acting on U.S. appeals to move more quickly could disrupt the economy, said the officials. They briefed reporters on next week's meeting in Washington on condition they not be identified by name.

"The government will not permit a backlash against financial markets and its 'harmonious society'," said a senior Finance Ministry official, using Beijing's term for efforts to spread China's new prosperity to its poor majority. He said Beijing introduced a more flexible exchange rate system in 2005 and "will not announce it again."

The May 23-24 talks are the second round of a "strategic economic dialogue" led by U.S. Treasury Secretary Henry Paulson and Chinese Vice Premier Wu Yi. They are meant to ease strains over China's swollen trade surplus, currency controls and other disputes that threaten one of the world's biggest trading relationships. The agenda includes opening China's service industries to more foreign investment and competition, energy and the environment, balanced economic development and innovation, the officials said.

A British firm that offered investors the chance to buy the life policies of terminally ill Americans was itself doomed

2007-03-06T03:55:00.000-08:00

The death futures market, heavily promoted as an investment innovation guaranteeing high returns, is in disarray after the collapse of companies both in the UK and US.

One UK investment company that specialised in this bizarre sector is in liquidation, with British investors facing losses of up to $40m (£22m). The major US broker trading in these policies is also in receivership with losses of up to $1bn, and is beset with regulatory investigations, prosecutions for fraud and allegations of money laundering.

Shepherds Select Fund, which was based in the Isle of Man, invested solely in so-called traded life policies (TLPs), which are not regulated in the UK. Run by Mike Abraham, 61, Shepherds Select Funds bought its non-HIV-positive TLPs from a Florida-based company called Mutual Benefits Corporation.

But MBC went into receivership in May 2004 amid allegations of fraud and money laundering. With all 100 per cent of its investment in MBC, the Shepherds Select Fund itself went into liquidation last May, most of those who lost money in the fund were experienced wealthy investors and even independent financial advisers. Even so, some investors have lost their entire life savings.

Shepherds' liquidator, Mike Simpson of PricewaterhouseCoopers, says it is difficult to estimate how much money investors might eventually get back. "Shepherds has invested in fractional policies, which remain owned by MBC, rather than whole policies they would have owned themselves." He adds that how much and when money will be recouped from America is in the hands of MBC's receivers. Mr Abraham denied that there was any malpractice or that Shepherds had been negligent. "There had been problems with MBC going back to 1996. But if you know the American scene you would know this was nothing unusual."

He claims that MBC was a very good company that "made one big mistake" in angering a Florida politician. "Three days later the Securities and Exchange Commission arrived on MBC's doorstep and then closed them down." In a London High Court judgement given this month it was revealed that huge commissions from MBC were paid into an offshore company controlled by Mr Abraham. In the 2003 financial year alone, some $1.3m was paid from over $10m worth of business.

Mr Abraham denied that the commission rate was as high as 13 per cent. "I think it was more like 10.25 per cent," he said, claiming that there was nothing unusual about such rates. "This is all in the Shepherds accounts. Most of it went back into Shepherds to enhance marketing and only a small percentage went to pay me and cover my running costs." Mr Simpson, the Shepherds liquidator, was unable to confirm this. "I am still investigating where this money went," he said. Mr Abraham is now involved with a traded policy investment company called Indemnity First with an address in Marbella. Its publicity does not mention the collapse of Shepherds.

The Changing Nature of Trading

2007-01-16T04:28:00.000-08:00

The record volumes aren't an indicator of volatility alone since the Dow industrials and S&P 500 reached new all-time highs last week. They also reflect a sea change in the way trading is done—through online trading programs used by a growing number of large institutional investors including mutual funds and hedge funds in the past five years.

"The days when humans traded with each other are gone. Now computers trade with each other," says James Angel, associate professor of finance at Georgetown University's McDonough School of Business. "Computerized systems are capable of handling big spikes in volume with minimal problems."

For Chris Concannon, executive vice-president of NASDAQ Transaction Services, heavy trading volume is an indication of the increasing efficiency with which the market is now able to execute trades, whether through online brokers or institutional investors using algorithms and electronic trading systems to place orders. Much of that has to do with technology, but it's also a function of much lower trading costs compared with 5 or 10 years ago. "If you can trade for $5, you may be inclined to trade in and out of positions on volatile days. There are very low costs for brokerage fees," he says.

Investors' ability to get in and out of positions all day owing to electronic trading programs means that record volume doesn't necessarily point to broader participation in the market. "Bigger institutional players like hedge funds that have that capability can bang in and out of the market a couple times a second," notes Rueckert. "Even though the same computer systems are trading back and forth, it's going to drive trading volume through the roof."

Special report: Insiders made nearly $50M trading a money-losing company's stock

2007-01-10T03:48:00.000-08:00

Cyberonics says 4.2 million Americans' lives could improve with a medical implant device the company makes to treat severe depression and epilepsy. The FDA approved its product. But federal investigators are probing Cyberonics' compensation practices. This USA TODAY Special Report examines one company caught up in the nation's expanding stock-options scandals. The report explains how a few Cyberonics executives and directors made nearly $50 million in stock-trading profits while selling a money-losing device that remains controversial.
Cyberonics (CYBX) said Monday that its chief executive and chief financial officer had resigned after an internal investigation found that unnamed insiders had incorrectly reported the dates of company stock options for years.

Cyberonics general counsel David Wise said in a filing to the Securities and Exchange Commission that the company had under-reported its executive compensation expense by about $10 million and would have to restate its financial statements going back to 1999.

In June, Cyberonics said that it was one of the companies under investigation by the SEC and by the U.S. Attorney's office in Manhattan. The company also faces several options-related lawsuits by shareholders and is embroiled in a proxy fight with a large investor demanding substantial changes in the board's makeup and governance practices.

Cummins had been directing Cyberonics' drive to win Medicare reimbursement for its medical devices to treat severe depression, a decision that he said could open up a $1 billion sales market for the company. Medicare's administrators have not yet ruled on the application.

Earlier, in June, former Cyberonics chief financial officer Pamela Westbrook, who resigned Sunday, told investors that "all stock options" issued by the company "are granted the day of approval and are priced at fair market value on the date of the grant." Westbrook said the company "fully followed securities and accounting regulations."

A USA TODAY investigation reveals that Cyberonics' board has engaged in a series of questionable practices to reward Cummins, certain directors and some executives with stock and options almost from its inception as a public company in February 1993. Among its practices, the company frequently issued stock options just before market-moving events that insiders participated in, including merger talks, regulatory milestones and earnings advisories. It also repeatedly issued options at the lowest or second-lowest monthly trading price, SEC filings show. On one occasion, management, including Cummins, and a director who serves on the compensation committee, bought company stock at a discounted price in which Cummins represented himself both as the CEO selling the shares and as an individual buying them.

Over the past year, academic research at several major universities has identified widespread problems in dating of stock options granted to company insiders. A joint study at Harvard and Cornell universities published last week estimated that about 850 CEOs at 720 companies benefited from opportunistic timing. The study, "Lucky CEOs," said the findings reflect widespread governance problems.