Lexology’s Post

Learn more in the latest Capital Markets & Securities Law Watch blog post: https://bit.ly/3QKzlHz

Effective May 11, 2024, the #NYSE amended Rule 123D to require a trading halt for any stock undergoing a reverse stock split. The amendment aims to align the NYSE with #Nasdaq and reduce errors resulting from market participants’ processing of reverse stock splits. Learn more in the latest Capital Markets & Securities Law Watch blog post: https://bit.ly/3QKzlHz David Sakowitz | Andrew Butler | Emily Semon | #WinstonTransactions

Introducing our newest blog: The BR Derivatives Report! Edited by of counsel Andrew Cross, the blog will make the derivatives markets accessible and understandable, and provide readers with valuable updates and observations that inform business and regulatory decisions. Ready to dive in? Visit the blog and subscribe to receive new content as it publishes. https://lnkd.in/esUQmkQv #derivatives #derivativesmarkets #financelaw #investmentmanagement

Introducing our newest blog: The BR Derivatives Report! Edited by my colleague Andrew Cross, the blog will make the derivatives markets accessible and understandable, and provide readers with valuable updates and observations that inform business and regulatory decisions. Ready to dive in? Visit the blog and subscribe to receive new content as it publishes. https://lnkd.in/esUQmkQv #derivatives #derivativesmarkets #financelaw #investmentmanagement

Changes to U.S. Securities and Exchange Commission beneficial ownership rules will shorten Schedules 13D and 13G filing deadlines. The agency also provided guidance on the formation of a “group” and the treatment of cash-settled derivatives under the rules. Brian V. Breheny  Richard Grossman James Rapp  Jeongu Gim  Joshua Shainess #secreporting #compliance #mergersandacquisitions #secfilings

This month, the US Securities and Exchange Commission adopted new rule 10c-1a under the Securities Exchange Act of 1934. It is intended to shine a light on the securities lending market by providing detailed information about most securities loans and publicly reporting specific information in 2026. Read more on our Global Investment Law Watch blog: https://ow.ly/KsXh50PZhEz #investmentlaw #SEC #investmentmanagement

Our Term of the Day for today is “Arbitrage”. Follow the MSL Business School to learn something new daily. Arbitrage is a trading strategy in finance that exploits price differences of identical or similar assets across different markets or exchanges to generate profits with little to no risk. The essence of arbitrage lies in capitalizing on temporary discrepancies in asset prices, buying the asset at a lower price in one market and simultaneously selling it at a higher price in another market, thereby profiting from the price differential. Key characteristics of arbitrage include: 1️⃣ Efficiency of Markets: Arbitrage relies on the assumption that markets are efficient and that prices adjust quickly to new information. Any deviation from the theoretical fair value of an asset creates an arbitrage opportunity. 2️⃣ Types of Arbitrage: Common types of arbitrage include: • Spatial Arbitrage: Exploiting price differences between geographically distant markets (e.g., buying a commodity in one country where it's cheaper and selling it in another where it's more expensive). • Temporal Arbitrage: Exploiting price differences over time (e.g., taking advantage of price variations between spot and futures markets). • Statistical Arbitrage: Exploiting price divergences based on statistical models (e.g., using quantitative trading strategies to capitalize on mispricings). • Merger Arbitrage: Capitalizing on price discrepancies between a target company's stock and the offer price in a merger. • Convertible Arbitrage: Simultaneously buying convertible securities and short selling the underlying stock. • Index Arbitrage: Profiting from pricing disparities between index futures contracts and the underlying securities. • Cross-Border Arbitrage: Exploiting price differences between related financial assets traded in different countries. 3️⃣ Risks and Costs: Arbitrage opportunities may be short-lived, and executing arbitrage trades requires prompt action and low transaction costs. There may also be risks such as execution risk, market risk, and regulatory risk. Arbitrage plays a crucial role in maintaining market efficiency by ensuring that prices across different markets remain closely aligned. However, arbitrage opportunities tend to diminish over time as markets become more efficient and competition increases.

Want to know more about proprietary trading, prop traders, prop trading firms, and how the world of prop #trading works in general? Read all about it in our blog: https://bit.ly/3Tjcwv1 𝖯𝗋𝗈𝗆𝗈𝗍𝖾𝖽 𝖻𝗒 𝖠𝗑𝗂𝖳𝗋𝖺𝖽𝖾𝗋 𝖫𝗍𝖽. 𝖢𝖥𝖣𝗌 𝖼𝖺𝗋𝗋𝗒 𝖺 𝗁𝗂𝗀𝗁 𝗋𝗂𝗌𝗄 𝗈𝖿 𝗂𝗇𝗏𝖾𝗌𝗍𝗆𝖾𝗇𝗍 𝗅𝗈𝗌𝗌. 𝖭𝗈𝗍 𝗂𝗇𝗍𝖾𝗇𝖽𝖾𝖽 𝖺𝗌 𝗂𝗇𝗏𝖾𝗌𝗍𝗆𝖾𝗇𝗍 𝖺𝖽𝗏𝗂𝖼𝖾. 𝖭𝗈𝗍 available 𝖿𝗈𝗋 𝖠𝖴, 𝖴𝖪, EU 𝖺𝗇𝖽 𝖭𝖹 𝗋𝖾𝗌𝗂𝖽𝖾𝗇𝗍𝗌. #axi #tradeyouredge #forex 

The problem with Axi select. Prop trading is a murky world. Gaining extra capital sounds like an ideal way to gain additional capital and increase earnings. Sounds to be good to be true right? The problem. Axi uses book B and book A trading books. As an Axi trader, you don't get to choose which book you trade on, Axi chooses for you based on performance. If you are not a profitable trader, Axi will place you in book b, and you will effectively trading on a virtual account where Axi will be profiting from your losses. So in essence, Axi has a vested interest in wanting you to lose, so how can you trust Axi when essentially they are counter party to your trades. A partnership should be win win, not you lose we win you win we lose. Unless Axi are definately going to give you book A trading, then Axi are giving you funds for a virtual account making you think they have given you real funds. Of course Axi won't ever tell you this, they would prefer to keep you ignorant and have you think select traders are given funds, but if you are book b trading on a virtual account Axi aren't giving you anything, virtual funds aren't real, they only become real if you win? Axi won't give prop traders book a because of the risk of losing funds. At Rise-cvf we are reporting our findings to the FCA and other regulators around the world, insisting retail traders are given more transparency and respect from brokers. MetaQuotes Ltd. and brokers like Axi and Fortrade Ltd. are a reflection of what's wrong with retail trading and how these brokers are using traders ignorance against them, is this ethically sound? Of course not, if you pay for a service the broker should tell you everything about your relationship with them, they chose not to because they make too much money from retail trader and rookies losing trades.

The rule is “vague, overbroad and exceeds the U.S. Securities and Exchange Commission’s statutory authority” claim the National Association of Private Fund Managers (NAPFM), Managed Funds Association (MFA), and AIMA - The Alternative Investment Management Association. #regulation #dealers #trading #markets #petitions #lawsuits #tradeassociations #trade