Exchange Consolidation Continues

The CBOE (Chicago Board Options Exchange) announced a deal to acquire upstart Bats Global Markets. The acquisition will combine an "old school" options exchange with a firm focused on high frequency and global stock trading. See article here, WSJ.

Restructured Trading Halts

In light of the "Flash Crash" in May 2010, exchanges implemented circuit breakers for individuals stocks. Using what has been learned from more recent events, the intent is to further restructure the responses to such trading halts. See article here, WSJ.

Mutual Fund Managers Miss Out on Apple Rebound

Apple stock has had a strong return this quarter, rising over 20%. However, almost 300 mutual funds sold their positions in Apple prior to this rebound. So, are professional managers really better than individual investors? Is this evidence in favor of market efficiency? See article here, Bloomberg.

Dividend Stock Valuations

In a search for yield, investors have actively purchased dividend paying stocks. As a result, prices have risen (and dividend yields have fallen). The question has thus become whether these prices are too high. See article here, WSJ.