Trading Floor Research Articles

Does Floor Trading Matter?

ABSTRACTAlthough algorithmic trading now dominates financial markets, some exchanges continue to use human floor traders. On March 23, 2020 the NYSE suspended floor trading because of COVID‐19. Using a difference‐in‐differences analysis around the closure of the floor, we find that floor traders are important contributors to market quality. The suspension of floor trading leads to higher spreads and larger pricing errors for treated stocks relative to control stocks. To explore the mechanism, we exploit two partial floor reopenings that have different characteristics. Our finding suggests that in‐person human interaction facilitates the transfer of valuable information that algorithms lack.

Виленский базар Подгале: происхождение и бытование названия<b></b>

The article is devoted to the Russian name of the oldest Vilnius covered market (lit. Halės turgus), the history of which is directly related to the ups and downs of the political life of Lithuania, important historical events, engineering and technical achievements in the field of civil engineering at the turn of the 19th–20th centuries. The change in the urban landscape and the emergence of a new accent in it, the change of authorities and the dominant language in the country, specific of the motley social and speech environment in the city as a whole and on its trading floors affected the difficult history of the new name. The immediate subject of analysis was the word Подгале (Podhale), which goes back to the Polish nominative phrase Pod Halą with the reference word hala (← German Halle). Since an important object of urban infrastructure is necessarily displayed on city plans and recorded in signs to them, the article examines in detail these documentary sources from different historical periods and in different languages: Russian — from the time of the Tsarist Empire; Polish — pre-war and inter-war; Lithuanian — after the First World War. Along with the plans of the corresponding time, other sources of information are analyzed — address books and postcards with images of the object of interest to us, which to a lesser extent can claim to be historical evidence, but often reflect the actual existence of naming among townspeople. The article traces the role of the state Lithuanian language in the fate of the unofficial Russian urbanonym.

The haptic visuality of financial trading

ABSTRACT This article offers a sideways approach to analyzing market visualizations on trading screens as a part of the sensoryscapes of financial trading. Based on ethnographic research on the trading floor of a market-maker investment bank in Istanbul, I develop an anthropologically driven interdisciplinary lens built on social studies of finance (SSF) and film and media studies. Through this lens, I use ‘haptic’ (Marks, Laura U. 2000. The Skin of the Film: Intercultural Cinema, Embodiment, and Senses. Duke University Press) as a key analytic and argue that markets on screens generate a haptic visuality that shapes traders’ bodily, sensuous, affective, and emotional engagements with markets. In this way, I offer an alternative reading of Beunza and Stark’s conceptualization of pattern recognition and re-cognition by bringing it back to the works of Knorr Cetina and Bruegger. I show that traders’ aspirations, intuition, and memories take part in pattern recognition and re-cognition, transforming these experiences into subjective and embodied knowledges and practices. Hence, I expand social scientific studies on financial trading by demonstrating that intersubjective relations with anonymous market actors require self-embedding into market visualizations, through which one can engage with the faces of markets as a face that touches back to the haptic visuality of markets on screens.

Анализ финансовых транзакций клиентов на основе POS и RFID данных с помощью инструментов аналитики больших данных

This article describes the concept of a financial transaction in the context of collecting and analyzing POS and RFID data, which describe the client component of the management object of a trade and service enterprise. The creation of a technical and experimental environment for the collection of such data is considered in detail, and descriptive characteristics of the experimental site, namely the trading floor, are given. In addition, an approach to processing such data is illustrated and examples of their visualization are provided.

Modeling of trade and production hub in the conditions of Industry 4.0

The article is dedicated to the current issues of researching digital transformation in accordance with global standards, global competition, and social aspects. The previous transformation practices of food enterprises in line with the requirements of Industry 4.0 have been analyzed. A physical concept of a digitized trade and production hub has been designed in accordance with Industry 4.0, encompassing both production and trade complexes. It represents an innovative and promising initiative that addresses a range of current problems on a national and regional scale. To ensure the effective functioning of the digitized trade and production hub concept in line with Industry 4.0, a mechanism for an automated system for receiving raw materials and finished products from suppliers, accounting, production, and acceptance of finished products, control of supplier raw material and product stocks, operation of the trading floor and digital stand, traceability of the movement of goods and material values for the formation of preliminary orders to the supplier of raw materials and finished products, the functioning of the value creation logistics chain for the supplier and the trade and production hub, and the distribution of material resources between suppliers and the Industry 4.0 trade and production hub have been developed. A concept of a digitized trade and production hub in accordance with Industry 4.0 and mechanisms of its functioning, which are automated, have been designed. The proposed concept aims to increase the efficiency of production and logistic processes, inventory control, automatic order generation, and raw material distribution. It is worth noting that the developed model in accordance with Industry 4.0 is aimed at optimizing resources, reducing operational costs, improving the quality of manufactured products, supporting local manufacturers, providing an opportunity for small local manufacturers to collectively use modern digital technologies, and increasing employment at both the local and regional levels. The franchising model serves as an additional scaling tool for Industry 4.0 trade and production hubs, allowing the integration of innovative enterprises into a unified production-digitalized ecosystem.

Knowledge of financial management practices of listed SMEs

RESEARCH OBJECTIVE: Small and medium businesses are constantly driving economic prosperity. The SME sector accounts for the overwhelming majority of enterprises, i.e. 99.8%, both in Poland and in the EU as a whole. Therefore, the aim of this article is to verify the research hypothesis assuming that Knowledge Management (KM) plays a key role in the financial management of small and medium-sized listed companies, especially in terms of investment decisions.
 THE RESEARCH PROBLEM AND METHODS: The research method used in this article will be the analysis of stock market data describing as a not very satisfied financial condition of small and medium listed companies in times of broad economic crises, which mainly include the pandemic time and the armed conflict in Ukraine. On the basis of selected financial data, estimate an econometric model was created to help explain the mechanism of changes occurring the financial condition of the listed business entities.
 THE PROCESS OF ARGUMENTATION: A literature review confirming the important role of knowledge management including the Balanced Scorecard (BSC) methodology in financial situation of the joint-stock companies. The current state of the global economy is leading to a dangerous situation in which it is becoming increasingly difficult to maintain a secure financial cushion.
 RESEARCH RESULTS: Estimation of an econometric model is expected to confirm the research hypothesis that KM plays a key role in the financial management of small and medium-sized listed companies, especially in terms of their investment decisions in range of using innovative method as BSC.
 CONCLUSIONS, INNOVATIONS, AND RECOMMENDATIONS: The article explains the key role of KM in the financial management of small and medium-sized listed companies during crises. The results of the estimated model can serve the more effective management of SMEs listed on NewConnect and other alternative trading floors around the world.

Financial arbitrage in electricity markets via virtual bidding

The concept of virtual bidding serves as a pure financial tool in electricity markets, aiming at enhancing their performance. Although virtual bidding helps reduce price gaps between different trading floors, there is evidence suggesting that this does not necessarily lead to improved welfare for market consumers. To gain a deeper understanding of virtual bidding and its impact on electricity market prices, this work delves into the strategic behavior of a financial player engaged in an electricity pool-based market. To this end, a bi-level model is formulated. The upper level optimizes the expected revenues of the virtual bidder while the lower-level represents the clearing of the market under network-constrained economic dispatch through a two-stage stochastic programming. The proposed model derives optimal arbitrage strategies in both scenarios of explicit and implicit virtual bidding. It also assesses the performance of virtual bidding under stochastic generation and transmission contingencies, including considerations of up-to-congestion virtual bidding.

Is employees' understanding of conduct risk aligned with values espoused in their employers' public statements?

The purpose of this paper is to examine whether there is any correlation between the values expressed in the published statements of investment firms and their employees' understanding of conduct risk. A qualitative examination of: (a) 20 semi-structured interviews, comprising 17 with employees from nine UK firms engaged in brokerage and trading activities, and three interviews with consultants specialising in conduct risk who regularly assist such firms; and (b) the publicly available statements issued by nine UK firms engaged in brokerage and trading activities. The paper finds much alignment between firms' publicly stated values and their employees' understanding of conduct risk. However, some themes that are currently high on the UK Financial Conduct Authority's (FCA) agenda, such as non-financial misconduct and transparency, receive little to no attention in either. The study's findings are limited to the insights of the interviewees who took part. These insights may not represent ‘what actually happens' on the trading floor. For this, an ethnographic study would be required. The findings imply that current conduct-related initiatives led by the FCA are not making a significant impact on brokerage and trading firms. This paper builds on a previous study that examines possible relationships between banks' corporate value statements and incidences of misconduct. Furthermore, it proposes the piloting of a conduct risk awareness programme that utilises the experiences of former miscreants to help embed cultural change.

Design and integration of acoustic treatment to the Former Stock Exchange—Cathedral Room

The Gothic Bank Cathedral Room within the Former Stock Exchange located in Melbourne is architecturally significant and largely original displaying ornate features for a historical public business arena. The Cathedral Room was the main trading floor for the Stock Exchange and was designed to represent the interior of a church, highlighted by the vaulted roof, columns, and the stained-glass windows. Through the guidance of Heritage Council Victoria, the Cathedral Room was granted permission to be converted into a commercial dining room. This paper details the methodology adopted to reality capture the interiors of the Cathedral Room by deploying LiDAR laser scanning, to develop a room acoustics model, and to investigate mitigation options. Furthermore, it explores the link between applying appropriate acoustic targets, guiding stakeholders, and delivering the project, which is essential to operate a successful commercial business to meet the expectations of their cliental. Arup developed an Odeon model, which allowed for the placement of speech sources and receivers and with integrated mitigation options. The modeling was presented to stakeholders in Arup’s SoundLab, an ambisonic sound studio, allowing the stakeholders to listen to the untreated space and compare it to various levels of mitigation prior to progressing to detail design phase.

Purity and dangers: Market making, structural uncertainty, and circuits of exchange in the cryptoeconomy

Market making is a crucial activity in financial markets, expected to reduce uncertainties related to price and liquidity information, and to enable strategic interactions among traders. Sociologists of finance have recently emphasized the role of automation and calculative devices such as algorithms in market making, highlighting the transition from informal human interactions on the trading floor to multilayered, formalized interactions involving both algorithms and human actors. In this process, social relationships become infrastructural to calculative devices. Less understood is what happens when uncertainties cannot be mitigated by the use of calculative devices and by the relationships infrastructural to them. We argue that in such situations market participants resort to circuits of exchange as arrangements that allow them to continue their activities in a legitimate manner. We ground the argument in an ethnographic investigation of market making in crypto markets, where traders are confronted with uncertainties that cannot be solved only by using algorithms. We show that market makers resort to horizontal and vertical circuits in order to address uncertainties and legitimize their activities. We make a double contribution: theoretical, by arguing that circuits and market transactions are not mutually exclusive; empirical, by showing that market makers harness circuits in order to endow their activities with legitimacy.

Hoàn thiện hành lang pháp lý về thương mại điện tử ở Việt Nam

The current legal system on e-commerce plays an increasingly important role in regulating relationships in virtual space. This legal system helps the state regulate e-commerce relations according to objective laws and ensure the interests of the parties when participating in e-commerce. This study evaluates the regulations on e-commerce in Vietnam since the effective date of Decree No. 52/2013/ND-CP until now. Using the Desk Research method and Theoretical Research method, the results are as follows: (1) Difficulty in protecting personal information of subjects participating in e-commerce; (2) Problems with regulations on information about goods and services on the electronic trading floor; (3) The ambiguity in regulations on publishing the list of e-commerce websites with violations and regulations on handling violations in the field of e-commerce. The results of this study will provide suggestions for improving the legal framework for e-commerce

Possibilities and necessity of using merchandising in current conditions

The purpose of the article is to consider the features of the application of merchandising activities, identify the principles and rules for placing goods on the trading floor, and evaluate the effectiveness of merchandising. The basic concepts in the field of merchandising used in the practice of production and trade enterprises are considered; the need for merchandising is justified; the classification of purchases is given; the characteristics of the rules for placing goods on the trading floor are presented; the operations to assess the effectiveness of merchandising are established; the possibilities and advantages of using a neural network to increase the efficiency of merchandising activities are identified. It has been found that the effective use of merchandising is based on the use of the principles and rules of merchandising, taking into account the latest advances in sales technology, including neural networks.

Transportation of pipeline and liquefied natural gas: comparative analysis of pros and cons

Today energy supply and energy efficiency are still the most important and relevant issues of lively international discussions. The purpose of this paper is to study the current state of the natural gas market. The primary types of transported hydrocarbon fuels currently presented on the trading floor include natural gas predominantly transported through trunk pipelines, and liquefied natural gas competing with it. The study of this problem involved a comparative analysis of the advantages and disadvantages of liquefied natural gas and pipeline gas transportation for the case of commercial gas shipment from the Russian Federation to the European Union and liquefied natural gas shipment from the United States of America to the European Union. It is important to note that natural gas shipments through the Nord Stream gas pipeline have been completely suspended since September 2022 for an indefinite period of time. As a consequence, it is the American liquefied natural gas that is becoming the main alternative to the pipeline gas from Russia today. An agreement has been formed between the United States and the European Union to supply 15 billion cubic meters of liquefied natural gas in the past 2022. However, the inescapable fact is that daily guaranteed shipment of natural gas is a timely and economically feasible source of energy fuel. Using the rule of guaranteed advantages and disadvantages, the authors identified the most rational and profitable aspects of light hydrocarbon fuel transportation. The conducted study resulted in the analysis of the following indicators: the cost of shipped raw materials, the transportation cost of compared options, and amount of hydrocarbon gas losses during the main technological operations. In addition, the issue of environmental safety of operated facilities was considered.

Thị trường vàng sau Nghị định 24 và một số khuyến nghị

Gold plays an instrumental role in the world economy in general and Vietnam in particular, even though it is no longer a currency. In an attempt to stabilize the fluctuated gold market in the early 2000s, the Vietnamese government issued numerous documents, including (i) regulations on the termination of the gold trading floor and domestic gold trading accounts, (ii) regulations on the termination of gold mobilizing and lending activities of credit institutions, (iii) regulations on the management of gold business activities, (iv) regulations on the sanctions for administrative violations in the field of foreign exchange and gold. Decree 24/2012/ND-CP, regulations on the management of gold business activities, is supposed to be the most comprehensive document, which contributes to the restructuring and reorganization of the entire Vietnamese gold market under the control of the State Bank. This paper analyzes the context of Decree 24 issuance and evaluates the outcomes of Decree 24 application based on the following criteria: (i) restructure the gold market and put a restraint on the “goldalized” economy, (ii) stabilize the gold price and reduce the impacts of gold price on the macro-economy, in turn, proposing suggestions regarding the gold market management in the current context.

득수와 거수가 아파트 가격에 미치는 영향

This study analyzed how the direction of the gaining water and draining water in the apartment along the Jeong-neung stream in Dongdaemun-gu affect the apartment sales price using the Hedonic Price model. In this study, the dependent variable was the actual apartment sales price. As independent variables, the direction of water extraction and draining water , elapsed years, the trading floor, the number of apartments building, the distance subway station, elementary school, and middle school were used. As a result of the analysis, it was analyzed that the direction of gaining water, the higher number of elapsed years, the higher number of apartments building and the higher the trading floor had a positive (+) effect on apartment sales prices. In addition, it was analyzed that direction of the draining water and the farther the distance to the subway station, elementary school, and middle school, the negative (-) effect on the apartment sales price.

COVID-19 pandemic and the stock market: Liquidity, price efficiency, and trading

This paper shows that the COVID-19 pandemic is associated with a decrease in liquidity and increases in price efficiency and informed trading before the NYSE closed its trading floor. The closure of the trading floor led to reductions in liquidity, price efficiency, and informed trading on the NYSE, and its subsequent reopening led to increases in these variables. The effects of the pandemic and the trading floor on price efficiency can be explained, at least in part, by their impacts on liquidity and informed trading. The effects on liquidity and price efficiency are fully reversed after the NYSE reopened its trading floor.

Day-Ahead Prediction of Distributed Regional-Scale Photovoltaic Power

Day-ahead forecasts are required by electricity market investors to make informed decisions on the trading floor. Whereas it is relatively easier to predict the performance of a few large-scale photovoltaic (PV) systems, a large number of small-scale PV systems with a wide geographical spread poses more challenges because they are often not metered for real-time monitoring. This paper proposes an artificial neural network (ANN)-based model to achieve regional-scale day-ahead PV power forecasts based on weather variables from numerical weather predictions (excluding solar irradiance) as inputs. The model was first implemented by dividing a region into clusters and selecting a representative site for each cluster using data dimension reduction algorithms. Solar irradiance forecasts were then generated for each representative PV system and the corresponding PV power was simulated. The cluster power output was obtained using a linear upscaling model and summed to produce regional-scale power forecasts. The model’s accuracy is validated using power generation data of several distributed systems in California. The results show at least a 29-percent root mean square error reduction over the benchmarking models.

Modeling the impact of stock exchange migration on trading volumes in competing markets

This article examines the impact of a stock exchange’s migration on its trading activity and the performance of competing markets. It examines the importance of the location of trading floors for all market participants; analyzes the relationship between the location of a trading floor and the speed of transactions in the stock market, as well as the impact of accelerating transactions on trading activity. The migration of the Euronext exchange from Paris to Basildon on September 25, 2010, was chosen as the event under study. The method of matched pairs demonstrates the possibility of rationalizing of experimental and control sample for further analysis and modeling of the impact of the relocation of the considered stock market on its and competing exchange’s performance. It is illustrated multidirectional changes in the shares of the value volume of trading and the number of transactions on the Euronext exchange itself and four competing markets. In order to model the impact of the migration of the exchange the method of “difference-in-differences” is suggested, that bases on the use of experimental and control samples and on the construction of regression equations of a special kind. Theoretical bases, advantages and disadvantages of the application of the method of “difference of differences” in the analysis of the impact of certain events on economic results were analyzed. Empirical estimates showed a different expected increase in the value of trading volume after the event on the Euronext and Chi-X Europe exchanges. It is noted that as a result of the migration, the Euronext exchange became closer to the alternative trading floors located in London. This accelerated the execution of transactions between them, and stimulated the alternative markets to become more competitive, faster and more fully reflect the changes taking place on the main Euronext Paris market.

Optimization-based economic analysis of energy storage technologies in a coupled electricity and natural gas market

This work presents a stochastic mixed-integer linear programming (MILP) optimization framework to investigate the optimal participation and economics of various energy storage technologies, such as pumped-hydro, advanced adiabatic and diabatic compressed air systems and li-ion battery, in a perfectly competitive coupled electricity and natural gas market. The clearing scheme pertains to energy-only markets, aiming to optimize dispatch and maximize social welfare for the integrated energy system, through a two-stage stochastic programming. The first stage presents the day-ahead market clearing procedure, while the second stage illustrates the integrated system operation in the real-time trading floor, through a set of plausible wind power generation realizations. The two markets mainly interact the bilateral operation of the diabatic compressed air energy storage system, both as an electricity producer and as natural gas consumer. The proposed algorithm is applied to a modified IEEE 24-bus power grid and a single-node gas network and provides a thorough analysis of the operational characteristics and profitability of each energy storage technology in the integrated energy system. Results illustrate that electricity storage systems can increase their overall profits under power transmission congestion and while wind power generation volatility increases from 5 % up to 52 %. In contrast, a decrease by 3.1 % in the social welfare is realized in the case of power congestion while this figure is approximately 2.54 % under wind power volatility increase.

Risk Management of E-Commerce Transactions in Digital Transformation Era

From statistics of e-Conomy SEA 2019 Report of Google and Temasek, we know size of e-market in our country, At that time, Vietnam is going to be e-commerce country (2nd largest) in Southeast Asia, after Indonesia ($82 billion), as with CAGR of 2015 - 2025 time is 49%, will reach market size (expected) of 23 billion USD by 2020-2025. Our study show there are online shopping risks (in e-commerce transactions) for example: buying fake products/goods, lacking information of suppliers/products, and securitity risks when buying on internet and proving credit card information. Last but not least, we suggest that first, a company has can provide documents proving its intellectual property rights to trademark and is granted a special account by the E-commerce trading floor; second, strictly control and need checking information security right since application development time and after delivery.