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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: saveslivesbyday who wrote (83991)	7/21/2007 5:12:38 PM
From: Giordano Bruno	Read Replies (1) \| Respond to of 110194

In just a few years, programs have expanded from a small fraction to more than 41% of all volume on the New York Exchange. Because of the "pressures of compliance," the chances are increasingly likely that programs take place because of an indexer or because of an active manager competing with indexing. Additionally, some institutions are now selling the benefits of packaged programs to hedge funds that are buying puts and calls and immediately taking the other side of the trades by selling and buying stocks. One colleague who has been offered such programs has privately confided to me, "None of this trading has anything to do with where the market is going or what the economy is doing." Great article, thanks for posting it.