I interested how those things exactly work. Where money and when money moved, who keeps records about shares etc. Any ideas? Books? Internet links? Thanks.
Larry Harris sort of. The mechanics are there but as you drift with his narrative into how he things traders operate, you get just a giant dose of CW (CW means conventional wisdom). Having the mecahnics down cold is a helpful background. Sort of like waling the course a few times and getting a good reference notebook for running the course. After that you just separate yourself from what they write in these kinds of books. I always do port tack starts when the committee boat has been anchored too soon for the breeses that are coming up that day. A starboard tack always put you equal with the fleet on a start, but the real play is to have rights just after the first tack of the fleet when everyone finally finds out how the wind is really blowing. Result: you get a lift from each boat in the fleet when they have to tack under your already established starboard first racing tack after the start. You also keep them out of having a safe lee position for trying to foot you... you just take their wind when they pinch up to foot you. Even with a gaff rigged 1906 dark harbor 12 in a mixed regatta on Frenchman's Bay..... lol...
{The regulatory industry is maturing into active management of public sentiment which the media is bringing to light--that the SEC and regulatory landscape is owned by the richest players--the owners and controllers. Their battles are what we see. If you read between the lines and have accurate details by going onsite or hiring someone to do so you may get in stride with what is really happening. Books will only give you what the 'sell' is to the public.} Clearing firm information you can get by playing golf with Penson or you can hire an employee to embezzle information and pay regulators if you get caught. I'm sure you are asking for the type of information that is coveted and not the T+3 that you can read about in many books sold by penguin. Thanks for the laugh though...lol
Hi dmitriyf, here is the Larry Harris book Jack mentioned: http://www.amazon.com/exec/obidos/t...102-3639128-8704165?v=glance&s=books&n=507846 I just browsed the relevent chapters and unfortunately I don't think it drills down to the transaction level you are looking for. There is extensive discussion of order flow but I saw no mention of the flow of funds. Saying that, I still highly recommend the book. As I work my way through it I'm getting an overview of the systems, entities, and flows in the marketplace at a detailed level that I haven't seen elsewhere. If you find the answers please post them here.
If you are interested in securities industry / financial services operations, there are quite a few books on the subject, to choose from: http://www.amazon.com/exec/obidos/t...ook/purchase/ref=pd_sexpl/104-7371780-1587142
Go to www.dtc.org... That's where the majority of issues are settled and cleared on a T+3 basis. The back office business is interesting but suprisingly complex. Custody of securities is important and yet suprisingly prone to error, still too many humans involved in the process in my opinion.