Trade tech liquidity 2013 ford
We are one of the best performers in all of energy. During a challenging year for the industry, we take proactive steps early on to ensure we maintain liquidity and preserve our balance sheet, and focus on holding our premier assets in the Anadarko Basin by drilling.
A strong hedge portfolio and high-graded investments help to manage the collapse in commodity prices. Offshore China, we bring the Pearl field online. Newfield celebrates its 25th silver anniversary. The Company accelerates domestic growth through the planned exit from its international businesses. Investments in our oil and liquids-rich developments allow us to grow and differentiate ourselves from our peers.
The Company is growing its oil production and taking advantage of the price disparity between oil and natural gas. Additional plays are being assessed. Our corporate headquarters relocates to The Woodlands, Texas, in September. We acquire more thannet acres in the Maverick Basin prospective for the Eagle Ford development. We add more thannet acres in prospective resource plays and make a discovery in the Pearl River Mouth Basin of China.
We enter the Marcellus Shale of Pennsylvania. Boothby is named president and CEO, third in the history of Newfield. A new oil field begins production offshore Malaysia and four successful deepwater discoveries are drilled, along with nine successful wells in the Williston Basin. These assets provide an entry into many of the Rockies' most attractive exploration and development areas. North Sea and the Abu oil field in Malaysia on-line.
We make several significant discoveries including Grove in the U. North Sea and Wrigley in the deepwater Gulf of Mexico. We drill nearly wells in Monument Butte, and begin development of four fields trade tech liquidity 2013 ford Malaysia and two fields in China's Bohai Bay. In the deep shelf play of the Gulf of Mexico, we drill a significant discovery at West Cameron Nearly half our production is now onshore. We also make our first discovery in Bohai Bay China.
More than just properties, Newfield acquires a skilled team of employees with a track record of adding value. A share buy back program also trade tech liquidity 2013 ford initiated. The year was our best to date on virtually all metrics. Cash flow and production reached record levels.
This acquisition established the Company as a serious onshore player and represented our first step in asset diversification. Two significant acquisitions are completed in the GOM, adding more thannet acres and new prospects. GOM production reaches record levels. We acquire two producing oil fields offshore Australia - our first international production. We begin to diversify our asset base and extend our reach to onshore Texas and South Louisiana.
We drill a significant discovery in the Broussard area near Trade tech liquidity 2013 ford. Newfield wins the prestigious National Safety Award for Excellence. Net production is up 20 percent continuing an uninterrupted string of production growth since Our footprint continues to spread as we begin operations along the Gulf Coast and trade tech liquidity 2013 ford China.
The drilling programs are successful and add significant new reserves. Our GOM production continues to expand following the installation of three platforms.
Newfield drills five successful wells and installs a new platform and pipeline. Newfield has a history of adding value behind acquisitions. We make our first operated discovery at Ship Shoal We participate in our first discovery, but after several dry holes, cash runs low.
Investors include Warburg, Pincus Investors, L. Newfield is founded by Joe B. Foster, former Tenneco trade tech liquidity 2013 ford, and 26 handpicked individuals.
This invention relates in general to computer-implemented financial systems, and in particular to an improved automated securities trading system. Computer-implemented securities trading systems are well known in the art.
One such system is that disclosed U. These computer-implemented securities trading systems obtain bid and trade tech liquidity 2013 ford prices for securities from a database and then execute trades based on the trade tech liquidity 2013 ford and asked prices. However, there is generally still a human component to such systems. For example, most financial markets also employ one or trade tech liquidity 2013 ford market makers called "specialists. In the prior art, the specialist function is not automated, but is performed by a firm or individual.
Thus, there is a need in the art for an improved computer-implemented trading system that includes an automated specialist function to create a market for the securities traded and to lessen the volatility of smaller securities markets. To overcome the limitations in the prior art described above, and to overcome other limitations that will become apparent upon reading and understanding the present specification, the present invention discloses method, apparatus, and article of manufacture for a computer-implemented financial management system that permits the trading of securities via a network.
In accordance with the present invention, a server computer receives buy and sell orders for derivative financial instruments from a plurality of client computers. The server computer matches the buy orders to the sell orders and then generates a market price through the use of a virtual specialist program executed trade tech liquidity 2013 ford the server computer.
The virtual specialist program responds to an imbalance in the matching of the buy and sell orders. An object of the present invention is to lessen the price volatility of derivative financial instruments traded in narrower markets. A feature of the present invention is a virtual specialist program that engages in trading in the market to offset the price volatility and to provide liquidity to the market.
Referring now to the drawings in which like reference numbers represent corresponding parts throughout:. In the following description of the preferred embodiment, reference is made to the accompanying drawings which form a part hereof, and in which is shown by way of illustration a specific embodiment in which the invention may be practiced.
It is to be understood that other embodiments may be utilized and structural changes may be made without departing from the scope of the present invention. The present invention comprises a computer-implemented trading system for derivative financial instruments. The present invention accepts buy and sell orders from traders for the derivative financial instruments, sets a market price based on the supply and demand, and participates in the market as a trader in order to minimize price volatility.
One preferred embodiment of the present invention is a computer-implemented "Hollywood Stock Exchange", which may be implemented as a simulation i. These derivatives could be purchased with dollars or with a virtual currency known as "Hollywood dollars" which are controlled by a virtual reserve bank.
The derivative financial instruments are identified by a Current Trading List displayed for the traders that comprises a list of movies in various stages of production, talent, and other entertainment-oriented assets. Similar information would trade tech liquidity 2013 ford provided for other derivative financial instruments offered on the Hollywood Stock Exchange.
Each trader's portfolio is identified by a Portfolio data structure that comprises the trader's account status. A typical combination of resources may include client computers 12 that are personal computers or work stations connected via the Internet 10 to server computers 14 that are personal computers, work stations, minicomputers, or mainframes.
Generally, both the client trade tech liquidity 2013 ford 12 and the server computers 14 are comprised of one or more CPUs 16, various amounts of RAM 20 storing computer programs and other data, and other components typically found in computers.
Also included may be input devices such as mouse pointing devices and keyboards. Both the client computers 12 and the server computers 14 operate under the control of an operating system, such as Windows, Macintosh, UNIX, etc. Further, both the client computers 12 and the server computers 14 each execute one or more computer programs 18 under the control of their respective operating systems. The present invention is preferably implemented as one or more computer programs 18 executed by the server computer 14, although in alternative embodiments these computer programs 18 may also be executed on the client computer Generally, the computer programs 18 implementing the present invention are tangibly embodied in a computer-readable medium, e.
Under control of the operating system, the computer programs 18 may be loaded from the data storage devices 20 into the RAM of the computer for subsequent execution by the CPU The computer programs 18 comprise trade tech liquidity 2013 ford which, trade tech liquidity 2013 ford read and executed by the computer, causes the computer to perform the steps necessary to execute the steps or elements of the present invention.
Those skilled in the art will recognize that the exemplary environment illustrated in FIG. Indeed, those skilled in the art will recognize that other alternative hardware environments may be used without departing from the scope of the present invention. Block represents the server computer 14 waiting for the next event to occur.
Once the event occurs, control is transferred to blocks to identify the event and respond accordingly. Block is a decision block that represents the server computer 14 determining whether it received a request to display data from the client computer If so, block represents the server computer 14 transmitting data to the client computer 12 for subsequent display.
The data transmitted for display preferably includes at least three types of data: Block is a decision block that represents the server computer 14 determining whether it received a request to submit a buy order from the client computer 12 for a particular derivative financial instrument, e.
If so, block represents the server computer 14 processing the buy order by placing it in a trade tech liquidity 2013 ford in the memory of the server computer The buy order is a data structure comprising:.
The buy order waits in the queue for the expiration of a predetermined "sweep pricing cycle". In the preferred embodiment, the sweep pricing cycle occurs every 15 minutes although other intervals could be used. The trader's account is then charged the market price for the derivative financial instrument. If the purchase uses up all trade tech liquidity 2013 ford cash in the trader's account, the trader is "loaned" enough money to pay for the purchase, and their account is charged interest at a predetermined rate, trade tech liquidity 2013 ford.
The interest is charged against the trader's account until they accumulate more cash to zero out the balance, either by selling stocks or buying dollars. Block is a decision block that represents the server computer 14 determining whether it received a request to submit a sell order from the client computer If so, block represents the server computer 14 processing the sell order by placing it in a queue in the memory of the server computer The sell order is a data structure comprising:.
Like the buy order, the sell order waits in the queue for the expiration of the predetermined sweep pricing cycle. The trader's account is then credited with the market price for the derivative financial instrument. The sell order can be either produced by a trader or generated by the server computer 14, as will be explained in more detail below.
For a sell order produced by a trader, the trader views a list of stocks or bonds owned by the trader on a monitor attached to the client computer and chooses to sell a quantity at the market price. When the trader requests to view the list of stocks, the server computer 14 trade tech liquidity 2013 ford certain information to the client computer 12 for display, including, for each stock owned, the last trading price LTPthe quantity of stocks, the purchase price, and the date purchased.
Similarly, when viewing the list of bonds, the server computer 14 transmits certain information to the client computer 12 for display, including, for each bond owned, the last trading price LTPthe interest rate being earned for each kind of bond, the quantity of bonds, the purchase price, and the date purchased. Block is a decision block that represents the server computer 14 determining whether an internal timer for the sweep pricing cycle has expired.
Block is a decision block that represents the server computer 14 determining whether it received a request to change the discount rate. If so, trade tech liquidity 2013 ford represents the server computer 14 trade tech liquidity 2013 ford a discount rate program. In order to add or subtract liquidity, the server computer 14 occasionally steps in to act as a virtual reserve bank and adjust the discount rate.
The discount rate is adjusted based on the performance of the specific industry of the market. Trade tech liquidity 2013 ford the Hollywood Stock Exchange, the discount rate is adjusted to add or subtract liquidity to affect the growth of the entertainment trade tech liquidity 2013 ford.
When the server computer 14 lowers the discount, all the bonds seem to be a better deal, because the bonds are paying a fixed rate interest that never changes.
This encourages traders to buy more bonds, and this surge in buying demand causes a correlated increase in bond prices as described above. The same thing happens to stocks, because traders are making less money on the interest being paid on the cash balance in their trading account.
When the server computer 14 raises the discount, the bonds seem to be a worse deal, since their advantage over the trade tech liquidity 2013 ford is smaller. Thus, the server computer 14 relaxes the buying pressures or demands for bonds, which should result in additional sell orders, or at least slow the buying of bonds, thus decreasing their prices as they trade in the market.
Likewise, stocks seem less trade tech liquidity 2013 ford, since traders could make more money trade tech liquidity 2013 ford keeping cash in their accounts and getting interest on it. Block is a decision block that represents the server computer 14 determining whether it received a request to revise the derivative list.
If so, block represents the server computer 14 executing a listing program. The server computer 14 determines whether the list of derivatives trading in the system should be revised. The list could be revised to reflect new derivative offerings, expired derivatives, and delisted derivatives.
When a new derivative is offered, the price is based on the derivative's potential value. For example, for a new stock offering, which represents a movie on the Hollywood Stock Exchange, the initial price of the stock could be based on the movie's potential box office revenue.
For a bond offering, which represents talent on the Hollywood Bond Exchange, the price of the bond could be based on the Hollywood Reporter's Star Power Index. A bond representing a talent with a low Star Power Index of 15 would be issued with a higher yield than a bond representing trade tech liquidity 2013 ford talent with a high Star Power Index rating.
A warrant with a strike price is attached to the new derivative when it is offered. When the derivative and warrant are first issued, the warrant is of no value until the strike price is reached.
For a stock, the strike price could be reached after the movie has grossed a certain level of revenue. When a derivative is delisted from the exchange, a stock due to the movie ending its production run or a talent due to retirement or death, for example, the warrants are called and the traders are paid the value of the warrants, thus providing off-balance sheet financing for studios.
Block represents the server computer 14 retrieving the buy and sell orders that have accumulated in the queue during the period since the prior sweep pricing cycle. Block represents the server computer 14 matching the buy trade tech liquidity 2013 ford with the sell orders, although it is likely that an identical number of buy and sell orders would not have accumulated in the queue during the period.
Block represents the server computer 14 executing the generate market price program described in FIG. After the market price is determined, block represents the server computer 14 updating the traders' portfolios to reflect the buy and sell orders in the queue being processed at the market price. One purpose of the generate market price logic is to generate a market price for a derivative financial instrument that reflects the demand or lack of demand for the derivative financial instrument in the market.
Block represents the server computer 14 measuring trade tech liquidity 2013 ford imbalance between the buy and sell orders during the period since the prior sweep pricing cycle.
Block represents the server computer 14 determining the price movement of a derivative financial instrument caused by the imbalance in buy and sell orders. Block represents the server computer 14 executing a virtual specialist program as described in FIG. Block represents the server computer 14 executing the stop trade program, as described in FIG.
Block represents the end of the generate market price program. In measuring the imbalance between buy and sell orders, as represented by blockthe absolute difference between the number of sells and the number of buys is defined as trade tech liquidity 2013 ford net movement in sweep NMS. A sweep increment variable SIV is defined as the increase or decrease in price caused by an incremental imbalance in the number of buy orders and sell orders.
A lot movement variable LMV represents the incremental lot size that will result in a price increase or decrease of one SIV. The projected price movement PM can be expressed as:. One can easily see that, with such a pricing scheme, there is the potential for great volatility in trade tech liquidity 2013 ford price of a derivative financial instrument and the eventual loss of investor confidence in the market mechanism. In exchanges such as the Hollywood Stock Exchange, it would be possible for one or more individuals to pursue trading strategies that would purposely cause drastic price fluctuations.
In order to encourage growth and stability in the capital market regulated by the trading system of the present invention, a virtual specialist program is executed by the server computer, as represented by block in FIG. In executing the virtual specialist program, the server computer 14 regulates the trading by actively trading in the market out of a virtual specialist portfolio VSP.
July 17, 8: Despite some headlines, volatility in the market is close to long-term average. And there are benefits. Have stock markets become more volatile? With the prevailing economic uncertainty that has fuelled many gut-wrenching swings recently for investors, one might think markets have gone haywire. In fact, stock markets are no more volatile today than they were 50 or years ago. Not from day to day or month to month. Stock markets have, however, become more volatile over shorter periods trade tech liquidity 2013 ford intra-day volatility has increased since the end of the s.
The monthly standard deviation — a common measure of volatility — increased dramatically in the wake of the recession, but the increase is not out of trade tech liquidity 2013 ford with other episodes over the past years or so.
And the standard deviation has since been trending down; trade tech liquidity 2013 ford a monthly basis, the TSX has been essentially flat over the past few months, which necessarily means not very volatile.
On a daily basis, the story is the same: If you look at intra-day data however, you see reasons to think markets have become more volatile. Trade tech liquidity 2013 ford a big spike inintra-day volatility has receded, but it remains elevated compared to the s or s see graph. In fact, since the turn of the last century, intra-day volatility for the TSX seems to have settled permanently at higher levels.
But at least part of the answer can likely be found by looking at technological innovation in stock trading. The ways stocks change hands in Canada and elsewhere have evolved dramatically over the past decades, and even over the past years.
As part of a pervasive worldwide phenomenon, the TSX became a fully trade tech liquidity 2013 ford trading platform, after it closed its trading floor in In addition to exchanges reorganizing themselves as electronic platforms, investors have increased their use of computer algorithms to automate some of their trading. These changes are on the whole positive, and have resulted in stock trading being much more efficient and fast. Problems can and do arise, however.
A case in point is the U. On that day, between 2: According to the U. As volumes increased, the continued sales by the algorithm created a massive unbalance between sell and buy orders, and prompted a chain of events that led to the flash crash.
Some also pointed fingers at another potential culprit: Trade tech liquidity 2013 ford traders provide the majority of the liquidity trade tech liquidity 2013 ford U. When events turned sour during the flash crash, high frequency traders massively exited markets, drastically reducing their liquidity.
High frequency trading is a fairly recent phenomenon, becoming widespread only a few years ago, and cannot account for the increase in intra-day volatility observed for the TSX since the turn of the century. It is possible nonetheless that the increased use of computers and trading algorithms have contributed to higher intra-day volatility, with markets being more responsive to new information or rapidly changing markets sentiments and dynamics.
The apparent increase in volatility over short periods — with the flash crash being an extreme example — does invite more vigilance from regulators, notably to ensure circuit breakers are appropriately set so as to avoid unduly large and rapid market swings. These mandatory brakes, in the face of extreme volatility, allow investors to take a breath and to reassess their strategies. Special to Financial Post. Filed under FP Comment. And there are benefits Have stock markets become more volatile?
The indemnity comes amid 'exceptional circumstances,' and will cover losses from delays for any company if Kinder Morgan walks away. Are we bad at finding it? Or have we found it all? My answer is we found it all'. Find Financial Post on Facebook.