<B>Slump in Trading Threatens a Wall Street Profit Engine Industry Could Post 11th Trading Decline in 16 Quarters</B> By SAABIRA CHAUDHURI and JULIE STEINBERG CONNECT Jan. 6, 2014 7:52 p.m. ET THE WALL STREET JOURNAL The trading boom that helped reshape global investment banks over the past decade is sputtering, raising fears that one of Wall Street's biggest profit engines is in peril. Executives have warned that lackluster markets could lead to year-over-year declines in fixed-income, commodities and currency trading revenue when banks begin reporting fourth-quarter results next week. That would mark the fourth consecutive drop and the 11th in the past 16 quarters. The slump has gone on so long that some observers are beginning to question whether it is part of an ordinary down cycle or a more permanent shift. "I think it is worrying," said Oppenheimer analyst Chris Kotowski, who expected trading revenue to have hit bottom and stabilized by now. "You can't turn around a fundamental trendâ¦if that's what this is." The declines have prompted waves of job cuts and departures. In the first half of 2013, there were 19,554 FICC traders at the 10 largest global investment banks, down from 25,257 in the first half of 2008. Since 2009, however, trading has been slowly fading, prompting bankers to worry whether the glory years will ever come back. http://online.wsj.com/news/articles/SB10001424052702304887104579304950089683862 So is volume coming back anytime soon? The institutions seem pessimistic.
I've been saying this for years.... THEY NEED TO BAND PORN!!! It's the only way to increase volume. No one cares when they can sip beers and watch bewbs!
Don't take this as sarcasm, because it's not. Seriously, it's not. BUT CAN YOU IMAGINE WHAT BERNANKE COULD DO IF HE KNEW HOW TO HARNESS THE POWER OF THE PRICE DRIVERS?!?!?!?!?!? I got a boner just thinking about it. Five year bull market? More like five HUNDRED year bull market!
well..they get what they deserve. you squeeze all retail, then prop shops ,come up with some really neat s**t like subpenny for 'chosen ones' and believe that you are kings now with all your fancy HFT s**t? oops...back to reality,here comes gravity(Eminem)..now it's dog eat dog games. didn't like heh? can't help you..Say thank to your buddies at SEC for micro structure they created. but.. on serious note-i've been thinking about it for years. thinking about why they killing the golden goose-retail traders and what they are going to eat after that.. and come to the conclusion that this market can do just fine on such volume and current not so retail friendly environment. why? cause 'they ' don't care. as long as pensions money keep flowing thru WS-industry will do just fine without you,me or any other participants. spreads got higher? less liquidity? flash crash again? who cares? it's not their money..they will raise their fees a bit and here we go! it's all kosher again!
they should drop that minimum day trade requirement...and up margin to 6:1 like Suretrader. All the unemployed will give trading a shot, the HFT can run stops to steal the unemployed money.
here we go.. as i said above- as long as pensions money keeps flowing-we have no problem..up we go..get this through your head-there is no sellers, only buyers