Sep 06, 2024

I heard about the impact of Robinhood’s order collaring policy on retail traders, which converts default market orders into limit orders with a 5% spread over prior prices, potentially causing extreme price volatility. There was also mention of a paper analyzing the impact of Robinhood’s order types on retail trading costs, suggesting that the order collaring policy may have contributed to extreme price movements.

Another topic discussed was the efficiency of the market, with a paper indicating that high-priced stocks may be in a bubble due to low interest rates, increased indexing, and meme-driven retail investors. The impact of social media on trading behavior and the potential influence of indexing on market efficiency were also mentioned.

The news also covered a legal dispute involving Johnson & Johnson and a startup it acquired, Auris Health, resulting in a significant legal reward granted in an investor earnout dispute. This highlighted the challenges associated with earnouts in acquisition deals and the potential for the acquirer to negatively impact the development of the target’s technology.

Additionally, the news touched on Venture Global LNG Inc.’s unconventional approach to fulfilling supply contracts by selling LNG on the spot market at higher prices, rather than to its contracted customers. The company’s rationale for this approach was explained, and it was noted that they have been able to bring more incremental molecules into the market, thereby lowering prices.

The financial landscape is evolving with Apollo Global Management Inc. reportedly considering the development of a secondary trading desk for private debt, Billy McFarland allegedly planning Fyre Festival II, various financial deals and developments making headlines, and an upcoming event featuring policymakers and crypto leaders discussing the industry’s future. These developments underscore the dynamic nature of the industry.

Stay Well!