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jerryking : private_information   9

Exchange Sale Reflects New Realities of Trading -
December 20, 2012 | NYT | By BEN PROTESS and NATHANIEL POPPER.

(Idea for the Ontario Food Terminal and the OPMA??) the firm, IntercontinentalExchange, or ICE, an electronic operator of markets for derivatives and commodities, is buying the symbolic cradle of American capitalism, the New York Stock Exchange,for $8.2 billion....ICE was founded in 2000 by Mr. Sprecher, who began his career developing power plants. In the 1990s, he saw that many power companies and financial firms wanted to hedge their investments in energy with financial contracts, but the market for these contracts was disorganized and opaque.

Mr. Sprecher bought an obscure exchange for buying and selling electricity in Atlanta and turned it into ICE with financing from BP and Wall Street firms, including Goldman Sachs and Morgan Stanley.

Banks were drawn to the idea of a standardized place to buy and sell derivatives tied to the value of oil and other commodities. But they also hoped to create a competitor to the virtual monopoly position being built up by the Chicago Mercantile Exchange in futures trading....ICE also decided to fashion its own clearinghouse, rather than tap an outsize firm. It expanded through acquisitions, planting the seeds for growth in 2008, when it took over the Clearing Corporation, home to a popular derivative known as a credit-default swap.

The Dodd-Frank overhaul may provide additional benefits for ICE. Under the law, exchanges must turn over public and private information to outside data warehouses, which will, in turn, share the information with regulators. Sensing an opportunity, ICE created its own warehouse, named ICE Trade Vault.

ICE and its Chicago rival, CME Group, have also moved in recent months to convert swaps trades, which are facing more scrutiny under Dodd-Frank, into old-fashioned futures contracts. Futures trading is lucrative territory for the exchanges in part because they can shut out competitors.

“The reality is that there are incentives to convert swaps into futures, where there’s less competition,” said Richard M. McVey, chief executive of MarketAxess, an independent trading platform that is expanding into the swaps business. “There’s no requirement for CME and ICE to open their futures clearinghouses to other exchanges.”
contracts  stockmarkets  mergers_&_acquisitions  M&A  derivatives  Dodd-Frank  trading_platforms  bourses  OFT  hedging  opacity  public_information  private_information  disorganization  clearinghouses 
december 2012 by jerryking
How to Build Your Network
December 2005 | HBR | Brian Uzzi and Shannon Dunlap.

Strong personal networks don't just happen at the watercooler. They have to be carefully constructed.Networks offer three unique advantages: private information, access to different skills and power. Leaders see the benefits of working every day, but perhaps not pause to examine how their networks are governed....Here's how to strengthen your connections.

Paul Revere was an information broker, a person who occupies a key role in a social network by connecting disparate groups of people....Networks determine which ideas become breakthroughs, which new drugs are prescribed, which farmers cultivate pest-resistant crops, and which R&D engineers makes the most high impact discoveries....When we make judgments, we use both public and private information. These days, public information is readily available from various sources, including the Internet, but precisely because it is so accessible, public information provides a competitive advantage much less than usual. Privacy, however, gathered from personal contacts that can offer something unique that can not be found in public spaces such as the release of a new product, the novel software code, or knowledge of this what a particular investigator seeks in candidates. Private information, therefore, may provide an advantage for executives, but is more subjective than public information, because it usually is not marked by an independent third party, such as Dun & Bradstreet. Therefore, the value of your private information to others and the value of your private information depends on how much confidence exists in the network of relationships....the best way to have a good idea is to have a lot of ideas....And when you trade information or skills with people whose experiences differ from your own, you provide one another with unique, exceptionally valuable resources....Power was repositioned in the network's information brokers, who could adapt to changes in the organization, develop clients, and synthesize opposing points of view.
These brokers weren't necessarily at the top of the hierarchy or experts in the field, but they linked specialists in the firm with trustworthy and informative ties.
networking  social_networking  social_capital  HBR  howto  networks  nonpublic  confidence  slight_edge  proprietary  relationships  exclusivity  public_information  private_information  inequality_of_information  homogeneity  heterogeneity  dual-consciousness  power_brokers  network_power  personal_chemistry  personal_connections  judgment  prolificacy  subjectivity  information_brokers  intentionality 
march 2012 by jerryking
WikiLeaks: Unpluggable
Dec 2nd 2010 | The Economist. It would be an exaggeration to
say that diplomacy will never be the same again. Self-interest means that countries will still send & receive private msgs. But communication will be more difficult. The trading of opinions, insights & favours necessarily requires shadow, not light. Unofficial contacts such as businessmen, journalists, campaigners & other citizens who talk to American diplomats, out of goodwill or self-interest, will think twice about doing so. Being tarred as an American crony can be lethal. What is said will be less clear & interesting. Principals will use go-betweens rather than talking directly. Clear private speech will give way to euphemisms suitable for public consumption. (e.g. “convivial” for “drunk”; “unconventional” for “mad”.) All that will make communication more difficult. ...In the
longer term the odds are stacked against secrecy...America’s need to share colossal amounts of data across a sprawling govt. machine.
WikiLeaks  diplomacy  Communicating_&_Connecting  security_&_intelligence  confidentiality  self-censorship  self-interest  opacity  private_information 
december 2010 by jerryking
20 Small Businesses of the Future: Privacy Protection Firm
Nov. 5, 2010 | BusinessWeek |

Privacy Protection Firm
The Idea: Your private info at risk

Stage: The need for data protection and reputation management growing

From credit-card numbers to photos from the latest kegger, more private
information is online than ever before. Businesses need to protect that
information, and individuals need to be careful with it. Mike Spinney, a
privacy expert in Townsend, Mass., says states are only now beginning
to pass laws that require companies to have written security plans to
prevent data breach. Beyond data, a cottage industry is developing in
the field of reputation management. "The bad things we do online can be
seen by just about anybody," says Spinney. "The good things you do
online can be your social media résumé, as it were. But you don't want
an impertinent comment on Facebook to be the difference between landing,
or not landing, a job."
cottage_industries  privacy  small_business  future  private_information  reputation  reputation_management  data_breaches 
november 2010 by jerryking
Too many pots
Sept. 2003 | Profit. | by Rick Spence. Abel and Cain fell
into a common trap: targeting the broadest market possible. By trying to
please too many people at once, they were unable to make deep
connections with customers and event sponsors. Sure, their potential
market was huge, but as Abel admits, "We weren't providing enough
value." Niche markets pay better than mass markets; it's a classic
entrepreneurial lesson, but one that many people learn the hard way. If
one were starting a beverage company today, find the niches Pepsi and
Coke don't own - as Cott Corp. did with bargain-priced house brands.
Unlike the markets Cain and Abel had previously wooed, the people who
attended these events had pressing information and self-development
needs, and were willing to pay for events that fulfilled those needs.
"Specializing opened up markets that we could never reach before," says
Abel. "There turns out to be no shortage of niche markets. The closer
you look, the more you see."
ProQuest  Rick_Spence  entrepreneur  market_segmentation  specialization  targeting  lessons_learned  partnerships  value_propositions  niches  Pepsi  Cott  Coca-Cola  customer_segmentation  mass_markets  emotional_connections  market_intelligence  private_information 
february 2010 by jerryking
Rajaratnam: Relentless Pursuit of Data -
OCTOBER 24, 2009 | Wall Street Journal | by GREGORY ZUCKERMAN
and ROBERT A. GUTH. The power of the "edge," as Mr. Rajaratnam called
it, also was reflected in how Galleon was organized. At most hedge
funds, traders are supposed to simply execute a firm's trades, which are
dictated by analysts and portfolio managers. Galleon had a different
approach: putting traders in charge of their own capital. A trader who
showed promise would sometimes be given $25 million to $50 million to
invest in a semi-autonomous fashion. To be sure, gathering information
is the lifeblood of most hedge funds. But when it is material, nonpublic
information about a company, it can expose a trader to accusations of
insider trading.
insider_information  Wall_Street  insider_trading  information_flows  private_information  hedge_funds  Raj_Rajaratnam  slight_edge  nonpublic  traders 
october 2009 by jerryking
Easy Credit and the Depression -
MAY 5, 2009 | Wall Street Journal | by L. GORDON CROVITZ.
Judge Richard Posner's "A Failure of Capitalism: The Crisis of '08 and
the Descent into Depression". Explains behavior that looks irrational in
retrospect shows that it was logical, based on incentives at the time.
Prevention requires regulators with access to public and private
information to track systemic risk and clear, predictable rules for how
the Federal Reserve and other regulators would respond to various risk
L._Gordon_Crovtiz  economic_downturn  Richard_A._Posner  risks  book_reviews  credit  predictability  failure  U.S._Federal_Reserve  regulators  incentives  information  information_flows  irrationality  systemic_risks  causality  public_information  private_information  hindsight  rules-based 
may 2009 by jerryking
Prudential Research Model May Have Been a Dinosaur
June 8, 2007, WSJ letter to the editor by a Mr. Scot Patterson.
Points out that deep-pocketed investors such as pension funds and
hedge funds are hungry for exclusive, specialized research that can give
them an edge over competition.
hedge_funds  equity_research  due_diligence  scuttlebutt  exclusivity  ProQuest  private_information  inequality_of_information  slight_edge  nonpublic 
march 2009 by jerryking
Seeking an Edge, Big Investors Turn to Network of Informants -
NOVEMBER 27, 2006 WSJ article by LAURIE P. COHEN profiling Mark
Gerson and his research firm, Gerson Lehrman. The firm is an
information broker to hedge funds and private-equity firms. These
private investment firms, which are loosely regulated, have Gerson
Lehrman Group, for information they hope will provide them with an
investing edge
research  investing  information  Gerson_Lehrman  proprietary  inequality_of_information  scuttlebutt  due_diligence  expert_networks  market_intelligence  slight_edge  private_information 
march 2009 by jerryking

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