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Archive for March, 2012


For those who are not aware just to let you know Goldman Sachs conducted their first ever bord meeting in India against a deteriorating economic and political backdrop in the country, where business is slow, economic growth has cooled and regulation has become a minefield for foreign investors.

GAAR stands for General Anti-Avoidance Rules which was presented by Finance minister in this year finance bill acting as anti global investor and the FIIs are already pulling the plug on such investments which will affect the flow of money into the capital markets. Continue reading

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Was going through few articles yesterday night and in the mean while somebody tweeted what are major debatable things happening in the market from traders prospective and found them …Crude , gold , Oil and natural gas are already on the radar and here are some ..

* Euro holds the key people don’t feel strongly about its directions where it is headed ..They say Is the euro bad or simply boring ?

* Tha dragon China hard/soft landing and the risk implications woes Link

* Mr Bernanke’s glass …half-full or all empty 🙂 Continue reading

Recalling a chapter from Traders Guns and money Beautiful lies on sale side how derivatives are misinterpreted or mis-sold, It’s very simple trying to figure out the hierarchy of the trading floor. There are Sales people – they lie to clients. Traders lie to sales and to risk managers. Risk managers ? they lie to people who run the place – a small correction they think they run the place. The people who run the place lie to shareholders and regulators 🙂

The last post that I did Derivatives derivatives soooo many, resembles outstanding derivatives with the top 5 banks of the world, here is some basic background for my non financial market friends about derivatives. Continue reading

Was going through Zerohedge and find some interesting facts the (TBTF) Too Big To Fail get Too Bigger To Fail. The top 5 banks of the world holds 97% approx $221 trillion derivative outstanding.

$220 trillion is more than enough for the world to collapse in a daisy chained failure of bilateral netting (which not even all the central banks in the world can offset).

Time and again history has repeated itself unregulated derivatives are prone to catastrophic failure. And yet, nearly four years after the crash, and nearly two years since the passage of the Dodd-Frank law, the multitrillion-dollars derivatives market is still dominated by a handful of big banks, and regulation is a slow work in progress. Unregulated derivatives are still an economic threat. That’s because derivatives have become deeply embedded in the global economy. ( an article from Ny times quoted) Continue reading

I am a big fan of Traders Guns and Money the book written by Satyajit Das, the definitions Knowns and Unknowns revealed by him is the classic work.  The reality is always to make sure that you have a sheat when the music in this game of musical chairs for high stakes stops ( referring to the examples for the  crisis happened in the past). As a result of it some interesting statements the management of the firms make but the intensity is something to thought about :-

Statement: As a Leading dealer with a global platform, we are the major player in the market.

  • Translation: We have spent a fortune to build this business and are now prepared to spend millions more subsidizing your requirements.

Statement: We have one of the most talented teams in this space.

  • Translation: Our staff are vastly overpaid and on huge guaranteed bonuses.

Continue reading

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