After the BSE cancelled all futures trades in Mahurat trading on Diwali due to a rogue algo program, SEBI has decided to investigate high frequency trading for risk management. The stock market regulator, the Securities and Exchange Board of India (SEBI), said that it will do a thorough review of the risk management system in [...]

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The awesome Devangshu Datta writes about Behavioural Quirks: Very few investors have the self-awareness required to analyse their own performances as objectively. Even fewer possess the self-discipline to change bad methods. Yet, it often doesn’t take much in terms of time or trouble. All it really takes is the humility to admit that not all [...]

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MF Global has filed for bankruptcy as the European debt crisis claimed its first big profile victim in the broker-dealer space. The company, led by ex-Goldman Chief and ex-US-Senator Jon Corzine, went belly up after a series of bets on Euro debt went sour – largely the 50% haircut on Greek bonds as agreed recently. [...]

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I wake up way too early, following stringent baby-care regulation that parents should get little or no sleep, and find some time to write in. I’ve been in and out of news, as worldwide, investors and traders participate in the markets with a “WTF” expression. I watched the action in the last four days entirely [...]

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Markets all around the world are crashing. India was down 4% Indonesia: -9% Hang Seng: -5% CAC (France): -5% DAX (Germany): -5% FTSE (UK): –4.6% The US S&P 500 is down about 4% as I write. Gold is down 3% in USD The Rupee went to 49 to a US Dollar today First, we want [...]

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Dan Ariely writes about financial behaviour:  Typically, a financial adviser takes 1% of assets under management—annually!—to balance a portfolio, and makes investment decisions on the basis of our answers to two questions: (1) “How much of your current salary will you need in retirement?” (2) “What is your risk tolerance on, say, a 10-point scale?” [...]

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HDFC’s Prashant Jain says It is always darkest before dawn: Within it he sports this chart: Prashant Jain is a well respected fund manager, and has done a great job managing money.Some of the above is hyperbole – even BEFORE the general elections and BJP’s rout, in April 2004, the market had a 13 fwd [...]

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The US markets are down 5% as we speak, and the drama is getting worse. The S&P downgraded Freddie Mac and Fannie Mae – which is obvious because they can’t hold a higher rating than the government that guarantees them. That has caused a flurry of activity in the markets, particularly in banks. Why?Because no [...]

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The U.S. Debt Limit Argument is just silly. First, the concept of a debt limit is weird because no other decent country has it (other than Denmark). India’s government debt has been increasing for a long time, and that is the nature of a deficit state. The concept of government debt is that they have [...]

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Three things that should catch your attention: Greek 2 year bonds go to 34% Spanish 10 year bonds go to 6.22%, nearly the highest in 14 yrs Italian 10 years at 6%, and 2-yrs at 10.5% Europe’s banks are seriously exposed to the sourthern banks, the stress tests have revealed. 8 of the 90 banks [...]

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