The greatest experiment in multi-national currency reform continues to unfold.  I don't expect the Euro to dissolve in the complete sense, however I expect one or several member-states to remove themselves from the system and reissue an IMF-backed currency.  That seems to be the way things are done in these types of situations, for instance Chile in 1982, Brazil in 1982, Argentina in 1982, Mexico in 1987, Russia in 1998, and Argentina again in 2001.  Each result was an...

It should come as no surprise that a network of journalists who have never traded a share, a currency, an option, or a future in their lives repeatedly cite and support the "research" of Nanex/Themis.  I overheard a segment this morning regarding the "time arbitrage" between Chicago and NYC, and citing "investigative work" by the CEO of Nanex, they attempt to explain an arbitrage conducted at "the speed of light." The trade in question consists of "someone" buying 1,300 ES contracts and...

The full interview can be found here. I previously touched on Knight's trading in the ADR sector using RWE Group as an example. Ulam: What are some of the key challenges regarding new ETFs coming on the market in terms of establishing liquidity?Browne: If you look at the ecosystem of ETFs, market makers historically rest at the arbitrage band. Wherever the arbitrage is located, market makers will begin quoting at that band. And the further you go through this band, the more liquidity shows...

For those interested in automated trading strategies, currency trading, and software development in the trading world, check out Limit Up Trading.  I have had a great deal of dialogue with the author over the last few months and he has proven to be very knowledgeable regarding markets, microstructure, and the programming necessary to properly operate in today's market.   He has been developing an ArbTrader program that I am very excited to watch unfold.  Worth...

Several of the spreads on the front of the curve are nearing very compelling levels.  And if you're interested in a longer term play on WTI, consider the sloping severity of the back of the curve.  via 4 Apr Reuters, Traders said between 20-30 cargoes of Nigerian crude oil were still unsold from the April-May programmes. "Flow to the States is minimal. Light, sweet is plentiful in the U.S. so there is limited W. African demand," said a West African crude oil trader.via 4 Apr...

via Vesseltracker.com, An Iranian tanker carrying Syrian crude oil is being held in Egyptian waters because it has not paid the Suez Canal Authority the fees required for passage, the Egyptian authority said on Monday. Reuters reported on Friday that the M.T.Tour, owned by ISIM Tour Ltd and identified by the U.S. Treasury Department as a sanctions-evading company set up by Iran, was shipping a cargo of Syrian crude to a state-run Chinese company. via Reuters, The official added that the...

This is a basic ETF / futures spread built from a block of shares traded against an offsetting futures contract.  Several breaks occur in this study from August, 2011. Hi-Res Hi-Res Hi-Res

The front 12 months are particularly curious.  Some news clippings this week: Feb 22, via Reuters: "Sentiment in the Asia-Pacific crude market firmed on Wednesday, with Australia's Enfield crude expected to fetch double-digit premiums due to tight supplies. One cargo of April-lifting Enfield, which was delayed from March, being offered and could trade at a record premium above $10 to dated Brent, a trader said. Premiums for sweet regional crudes for April have risen across the board...

This is the spread of Berkshire Class A vs. Class B shares.  Obviously capital intensive.  Lei goes into more detail in his 2008 paper on the subject.  Prices were recorded 11 September, 2011.