The mispriced transactions totaled 442,600, from October 2008 through the start of this year. The amount owed customers for the mistakes was $420,360. Less than a buck a trade. On a 200-share trade, that equals less than 3 cents each.
Would creating a handful of "universal" order types help reduce the complexity of equities trading?
- There are other issues to be considered
Defining the Alpha Code
The Boston Companys David Brooks, along with his fellow traders, is spending more time mining and analyzing data to find lesser-known stocks that can provide clients with above-average alpha and boost returns.
Big Trades on Small Firms
Since 2005, Perritt Capital Management's George Perritt has been building up a specialty: trading in large blocks, which now accounts for 35 percent of its activity. Heres how the buysider manages it.
Two Decades of Pioneering
Bob Gauvain, head trader at Pioneer Investments, has been around the securities industry a long time. Starting as a messenger on the Boston Stock Exchange Bob Gauvain, he has risen to the rank of head trader, a role he's held for the last 21 years.
Trading Moves to Maine
Rob Felvinci, director of portfolio management and trading at Spinnaker Trust, is sitting in the catbird seat, finally. After spending his entire trading career and life paying his dues in the concrete jungle that is New York City, the veteran trader and family man now can write his own ticket. And he has--trading Gotham for Portland, Maine.
Prepare Deeply, Act Quickly
Karen Heidelberger figured trading might be a career compatible with her personality after running a group inside Merrill Lynch's mergers and acquisitions department from 1996 to 1998 that tried to resolve conflicts ahead of time.
Getting With The Program
Andy Brooks is concerned about what he sees as inequities in stock markets. And as head of U.S. equity trading at T. Rowe Price Associates in Baltimore, he's doing something about it.
Getting Street Smart
Longtime JonesTrading sales trader Tom Carter wants to be an educator. Jones, the incoming chairman of the Security Traders Association, is worried that investors misunderstand what traders do.
Beating the Clock
Kevin Chapman, head of trading at San Diego-based Allianz Global Investors, relishes the tough trades.
Buyside Snapshot: Banking on Equities' Return
From everything in equities to absolutely nothing. That was how big the change was for Oklahoma City-based hedge fund Covenant Global Investors. As a multi-strategy global macro fund, Covenant can invest wherever it sees opportunity, and when the market began to tank, the fund lost its taste for stocks.
Buyside Snapshot: House to Liquidity Hunter
Sales traders instinctively know if theyre in the right seat, if theyre comfortable where they work. For Melissa Missy Heathcote, a migration from the sellside to the buyside might sound like a familiar story, but her move included a two-year stint in real estate in between. Those two years were long enough for the former Alex. Brown & Sons sales trader to discover that showing houses isnt the same as shopping a large blocknor as rewarding.
Hearing the Voice
Young traders--those who grew up with electronic gadgets--must be reminded to seek "the voice," of the sales trader, says Bob Luckey, a trading lifer.
Optimizing Trades Real-Time
After two years of development and testing, Robeco Investments is going live with a new trading tool. Director of trading Mark Kuzminskas' latest technology project marries data from portfolio managers' trading history with real-time stock analytics for the desk. The goal of the project was to optimize trade scheduling based on the PM's tendencies in order placement, using real-time analytics.
Trading Runs at RiverFront
The James River runs right past Rob Glownia's office, reminding the head trader for RiverFront Investment Group every morning that, like the river, trading is dynamic, whether the job is managing investors' daily cash flows or longer-term trading strategies.
A Day in the Life
As head of Philadelphia International Advisors' (PIA) trading, Gordon Gary has the global markets covered, along with his colleague Anthony D'Amore. Gary covers the U.K. and the rest of Europe; D'Amore has Asia. Wrap trading is run by Brian Penhale.
In the Conversation
It's the close proximity of portfolio management and trading at Heartland Advisors that makes the investment process tick for the Milwaukee-based manager with $5.2 billion in equities. Three traders and 14 portfolio managers and analysts work side by side in an open environment: The traders are sandwiched between the portfolio management teams. They are within earshot of each other.