Automated traders are in an elite club. Every day, they walk a high-stakes tightrope between the potential for big gains and big losses. Whether you’re a market maker, volatility trader, or systematic trader, every day is like a poker tournament held at microsecond speeds.
For 14 years, Wall Street Horizon has focused on providing accurate corporate event data – because we know that corporate events impact volatility. For example, recent independent academic studies have demonstrated that changes in earnings announcement dates can affect alpha.
Highlights of 2016 Wall Street Horizon research include:
An IRO’s job is to provide bi-directional visibility. They give their management teams visibility into what the financial community thinks about how their companies are being run both individually and as compared to others in their sectors. Ultimately it is those perceptions that affect their stock prices. Conversely, the IRO has groups to service – shareholders, analysts and other financial constituents – for whom they provide visibility into their companies’ strategies, operations and performance.
Here at Wall Street Horizon, tracking corporate events is our business, so as you’d expect, we watch these things very closely.
Solid Buildings Require Strong FoundationsIt seems like every software vendor is in the analytics business these days. This is especially true in the financial services space. Whether you're a quant, algo, hedge firm, prop trader, traditional asset manager, RIA, FA, or whatever, some vendor has a slick analytics app just for you.
Publicly traded companies are scrutinized more than ever today. Information about them is dissected and fed into investors’ models and trading strategies the instant it becomes available. When signals are detected, they trigger actions, often in microseconds. So having better information sooner is the name of the game.
Wall Street Horizon polled the investment community with a range of questions on corporate events. The results of the 2016 Corporate Event Research Survey reinforce that corporate events are critical to trading.
Download Full Report of the Results
In the U.S. financial markets, the witching hours occur between 3:00pm ET and 4:00pm ET when multiple classes of options or futures expire on the same day. Double witching (when two classes of options or futures expire) occurs on the third Friday of every month, except at the end of each financial quarter in March, June, September and December. In those months, quadruple witching occurs when contracts on stock index futures, stock index options, stock options and single-stock futures all expire. If you are wondering about triple witching, that became synonymous with quadruple witching in 2002 when single-stock futures began trading.
If you are looking for a good case study to support the research that says bad news is on the way when a company delays a scheduled earnings date, look no further than what happened to Valeant Pharmaceuticals yesterday.
If you watched last night's episode of 'Billions' on Showtime, you would have seen the Axe Capital trader Donnie Caan wearing a concealed microphone and recording device into work. The U.S. Attorney's Office suspected Donnie of insider trading and the only way he could keep himself out of jail was to capture evidence of his boss Bobby Axelrod committing a similar act.