David Yan

On June 3rd, a technical issue at the NYSE affected the prices of some stocks, causing several U.S. stocks to show abnormal prices. Among them, Berkshire Hathaway A-class shares under Warren Buffett were incorrectly shown to have dropped by 99%. Since June 3rd (until a temporary halt due to abnormal volatility), the trading volume of these shares has been less than 4,000. Additionally, shares of the Bank of Montreal, Barrick Gold, and others fell by more than 98% and remained static. Currently, trading in B-class shares is normal, with the decline narrowing from approximately 1.18% to 0.80%. Barrick Gold and Nuscale Power also experienced dramatic drops. The NYSE stated that it is investigating the technical issue, and several stocks have been halted due to significant volatility. Sam Van, the founder and CEO of SRO Partners, told Sina Finance that the technical issue might be related to the U.S. changing the settlement time to T+1. "T+1 increases the efficiency of market settlement. As the market tries to transition from T+2 to T+1, settlement will be easier for highly liquid companies. However, for low liquidity stocks, there might be unforeseen challenges. If the market runs too fast and efficiently, will there be another market flash crash?" Sam Van suggested that for the various parties involved in the financial market, institutions must staff mission-critical overnight operations (e.g., trade reconciliations, currency conversions, payment processing) to handle time-zone friction. Smaller regional banks, agency broker-dealers, and niche firms should enhance their capabilities before the transition date. Additionally, the rush to complete pre-settlement on a compressed timescale may increase operational risks, potentially leading to settlement failures. Sam previously worked at the NYSE for over a decade, primarily facilitating the initial public offerings of Asian companies listed on the NYSE. In the past two decades, Sam has successfully listed more than seventy companies on the NYSE and Nasdaq. These companies have a combined market value of $7 billion and operate across various regions, including Asia, Europe, and the United States. https://lnkd.in/eBE5UaQz

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Today's graph of the day. Nominal 10yr UST yield versus CESR, the composite ether staking rate. Maybe we'll look at real yields next... H/T Tracy Stephens and the CoinDesk team.

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Interesting developments in sell side research in China: decreases in research budgets and analyst headcounts, and, per the Integrity Research Associates article linked below, "eliminating the use of soft dollar commissions to pay for research from brokerage firms, consultancies, and market data terminals." However this doesn't mean that sell side data doesn't have value! With ExtractAlpha's TrueBeats earnings surprise prediction model, we're able to use sell side estimates - among other inputs - to predict both earnings and returns for A Shares names. The chart below shows cumulative gross returns to a top- minus bottom-decile portfolio. Yep I know, long-short isn't realistically achievable in the domestic Chinese market, but the point is that one can still differentiate winners from losers using analyst data. https://lnkd.in/eTnhmgZa

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DTCC pilot with Chainlink is aimed to standardize NAV data distribution across blockchains using Chainlink's CCIP protocol. The participants included major financial institutions like JPMorgan, BNY Mellon, and State Street. This is significant because it highlights the growing trend of real-world asset tokenization, attracting giants like BlackRock and HSBC. The benefits are enhanced operational efficiency, faster settlements, and increased transparency compared to traditional financial systems.

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The Institutional Investor Research Survey has become an industry benchmark. This year for the first time, Al Ramz Capital is listed as a research contributor, which is a rewarding payoff for our steady efforts to bring more market intelligence to our stakeholders. Your voice is important, whoever you decide to vote for. Don't be shy and cast your vote (link below)!

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Weekly Post Series Research 2024 #19 Weekly Post Series topics include Research, Strategies, Products How to Use Income Simulation to Manage Silicon Valley Bank in Q2 2022?   Optimize Income Attribution and Simulation Strategies   Last week, I investigated the root cause of Republic First Bank's failure on April 26, 2024. This week's theme continues with the concern of interest rate risk for Q2 planning. Interest rate risk may have further repercussions on bank failure, not only confined to SVB. This post will discuss the impact of rising interest rates on bank performance using income simulation based on probability-weighted scenarios. I will discuss balance sheet management strategies using this income simulation method tomorrow.   Challenge   In my previous post, I discussed the five quarters of Silicon Valley Bank Income Attribution, showing that product profitability continued to decline to Q4 2022. Commentators have postulated many root causes of the bank failure. Some suggested that Q3 could not save the bank. What could have been done using the Q2 performance results if that is the case?

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With USDJPY trading above 160, here are 5 reasons why the Japanese Yen so weak https://lnkd.in/eF9whxyA

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I updated ADVDB.co with May SEC investment adviser data. Unbelievably, my data are still more current than IAPD. I get my data from data.gov (managed by SEC). IAPD is raw PDFs (also managed by SEC). The PDFs are out of date. I think I know what SEC has been working on instead. Yesterday, they announced (https://lnkd.in/dBACNMSk) a new report summarizing investment adviser data. You can flip through it here: https://lnkd.in/dSmcNG39 Earlier versions of ADVDB surfaced these exact data. I'm pleased to say my numbers align with SEC's, so that's a relief. That said, I removed much of the high-level and historical data to lay the groundwork for upcoming more ambitious features. ADVDB users tell me they want two things: 1. deeper intelligence on individual advisers, and 2. data for benchmarking new products (e.g. fee schedules) This will take a few weeks, but that's where I'm headed.

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Colleagues, paradoxically, prices -- the basis for multiples -- are unreliable, and value is in the herd, not in differentiation. It's a bit long. I could've left out the FOMC bit, I suppose! https://lnkd.in/gtaQbrRQ #stocks #investing #stockmarket #FOMC

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We hosted #TokenizeThis 2024 last week - the inaugural Security Token Market 🌴 conference in Miami, FL - with 500+ attendees and 50+ speakers from legacy financial institutions to industry startups and crypto-native firms alike. I had the pleasure of moderating the #RealWorldAsset Market Movers discussion alongside panelists Thomas Cowan (Galaxy), Anthony B. (Coinbase), and Michael Bucella (Neoclassic Capital). Key takeaways revolve around: - Proper on-ramping via #stablecoin and yield-generating products (globally, not just in one standalone ecosystem) - Backing the necessary mid-ground infrastructure to move the ball from redzone to redzone - The cascade of new product unlocks following the #tokenized liquidity fund (money markets, treasuries, repo) narrative The full panel discussion is linked in the comments for all 🤝

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"Tokenisation of Real World Assets (RWAs) is getting real as it attracts top players and substantial funding" - great to have XinFin Powering XDC Network supported by TFD Initiative member Securitize - more to come on this front. XDC Foundation TFD Initiative #private #credit #rwa #tokenisation

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In a recent interview at the Bloomberg Investment Summit, SEC Chair Gary Gensler expressed confidence in the approval process for spot Ethereum ETFs. Although he did not provide a specific timeline, he highlighted that the focus is on asset managers making full disclosures for their registration statements to go effective. Gensler emphasized that the process remains smooth, with some expert analysts predicting a go-live date of July 2. All crypto community members are eagerly awaiting the start of trading for the Ethereum Spot ETF, which was approved on May 23. After the cryptocurrency dump connected to Mt. Gox, the community needs some belief and trust to wait for and believe in. Fortunately, the process is progressing smoothly, and we have nothing to fear. No FUD, guys—keep building! Analysts believe that Mt. Gox repayments, starting in July, won't be as detrimental to Bitcoin as anticipated, though they might spell trouble for Bitcoin Cash. Let’s wait and see! #Ethereum #ETF #Crypto #Blockchain #GaryGensler #SEC #Investment #Finance #BlackRock #VanEck #MtGox #Bitcoin #CryptoCommunity

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To add to Ron Shevlin's post consider the economic history of the American's economy the past 100+ years. I believe the growth of the American's economy for the past century is in part due to the unique banking framework in the United States and how the demand for credit was met with a supply of credit that was distinctly based in communities. Times are a changing and we may see fewer banks and credit unions driven by efficiency (and regulatory burdens). Banking and finance are crucial part of your daily lives and thus the demand is quite high because there is a need. #communitybanking, #econonics

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🚀 Emmis Capital LLC Initiates $10 Million Capital Raise with tZERO Group, Inc. Securities Services 💼📈 Emmis Capital LLC a distinguished managed fund specializing in pre-IPO and emerging growth companies, has announced a significant $10 million capital raise in collaboration with tZERO Group, Inc. This strategic initiative leverages tZERO Securities, a leading technology platform for capital markets that is regulated by the SEC and FINRA, to facilitate this new funding round. Highlights of the Capital Raise: 1️⃣ Strategic Funding: Aimed at investing in high-potential pre-IPO companies and emerging growth public companies, this capital raise is set to bridge these firms to further growth and liquidity. 2️⃣ Experienced Leadership: Backed by over 50 years of combined C-suite level Wall Street experience, Emmis Capital's team brings a deep understanding of the market and strategic investment opportunities. 3️⃣ Innovative Platform Use: The use of tZERO's regulated broker-dealer services underscores a move towards democratizing access to investment opportunities traditionally reserved for institutional investors. Democratizing Investment Opportunities: This capital raise not only aims to support the next generation of public companies but also opens up investment to a broader audience, enhancing transparency and inclusivity in the investment process. This initiative is particularly significant as it represents a pivotal step towards opening up market opportunities that have historically been exclusive to Wall Street firms. Investor Participation: Interested investors can find additional details and participate in this exciting opportunity through Emmis Capital's dedicated investor site or directly contact their team for more personalized engagement. 💬 How do you view the impact of blockchain and modern platforms like tZERO on the democratization of capital markets? What do you think are the key benefits and challenges of these emerging investment avenues? 🔄 Join the discussion and share your insights on how technology is transforming traditional investment landscapes! 🔗 For further details on this capital raise and to explore investment opportunities with Emmis Capital, visit their official site: https://lnkd.in/g-DeHUzB #EmmisCapital #tZEROSecurities #CapitalRaise #Investment #Blockchain #Fintech #PreIPO #EmergingGrowth

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The SF/EBOT Options Traders meetups have been generating and tracking its member-voted "trade-of-the-month" and is approaching its five-year mark of 60 of these. The next meeting is 5/15 via Zoom if/when "money & sleep" might be of interest? https://lnkd.in/gyQmeb2 (*I should emphasize that these are member-voted and not recommended trades, but it has been fun to track over the years)

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