Sac Capital Manager’s Insider Trading Trial Starts

The move comes as other U.S. banks, including JPMorgan Chase & Co and Morgan Stanley, look to exit physical commodity trading in the wake of increased government scrutiny, squeezed trading margins and forecasts for tepid demand in certain markets. Goldman Sachs executives have been resolute that their J. Aron commodity unit is a “core” part of the bank’s offering to clients. However, political and regulatory pressure has mounted, and this week a source said the bank is considering selling its controversial metals warehouse arm.
Source: http://www.reuters.com/article/2013/11/22/goldman-uranium-idUSL2N0J70YY20131122

Monthly First, Weekly options trade (on average) 4.33 times more often per month (52 / 12). If the SPX is predominantly random (for short periods of a month or less, research has shown this to be the case, including research performed by Options Annex ), the more often you trade, the better the probability model works (which includes the options model: Black-Scholes). Second, the Weekly adjusts more quickly to changes in Implied Volatility (IV) and changes in the price of the SPX. This means the Weekly can better accommodate changes in the market place, improving profits at the same risk level.
Source: http://www.examiner.com/article/trading-the-spx-weekly-vs-monthly-credit-trades

22, 2013 1:33 p.m. ET Executives at large banks are reviewing financial plans to invest in a new U.S. corporate bond trading platform that they would use to trade with each other and with clients, said people familiar with the matter. Documents that detail the structure and financial plans for the new platform were delivered recently to several banks, including Bank of America Merrill Lynch, Citigroup Inc., Goldman Sachs Group Inc. and J.P. Morgan Chase & Co.
Source: <a href='http://online.wsj.com/news/articles/SB10001424052702304337404579214092115777898&#039; resource >http://online.wsj.com/news/articles/SB10001424052702304337404579214092115777898

“He needed to point the finger at somebody to get a deal,” he said. “He chose self-interest over the truth.” Apps said Horvath was part of a circle of four analysts who used contacts at public companies to gain insider information that they would pass on to each other and to their own portfolio managers. She said the government would prove its case through four turncoat witnesses who had pleaded guilty to the insider trading scheme, including two former employees of public companies. She said their testimony would be corroborated through trading and phone records, as well as emails between participants. Berke, though, said the witnesses would twist innocent information to make it seem Steinberg had committed a crime.
Source: http://abcnews.go.com/US/wireStory/sac-capital-managers-insider-trading-trial-starts-20957959

Stocks Gain in Early Trading on Wall Street; GM Up

unemployment benefits fell to the lowest since September. First-time applications for benefits dropped by 21,000 last week, the Labor Department reported, the latest sign that the U.S. job market is recovering. The number of applications, which is a proxy for how many workers are being laid off, is now near where it was before the Great Recession. Investors sold government bonds after the report came out, pushing the yield on the benchmark 10-year Treasury note higher.
Source: http://abcnews.go.com/Business/wireStory/stocks-edge-higher-retail-sales-increase-20950287

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