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in a competitive market this investor has many ways to execute his transactions and he will have more alternatives both foreign and domestic if his volume is profitable for an exchange to handle
if not chicago then in new york if not the u.s. then overseas
volatility surrounding his trades occurs not because of index arbitrage but because his is a large addition or <unk> to a widget market with <unk> liquidity
eliminate arbitrage and liquidity will decline instead of rising creating more volatility instead of less
the speed of his transaction is n't to be feared either because faster and cleaner execution is desirable not <unk>
if slowing things down could reduce volatility stone <unk> should become the trade ticket of the future
encouraging long-term investing
we must be very cautious about <unk> investors as long-term or short-term
policies designed to encourage one type of investor over another are <unk> to placing a sign over the big board 's door saying buyers welcome sellers please go away
the ultimate goal of any investor is a profit motive and regulators should not concern themselves with whether investors are sufficiently focused on the long term
a free market with a profit motive will attract each investor to the liquidity and risks he can <unk>
in point of fact volatility as measured by the annualized standard deviation of daily stock price movements has frequently been much higher than it is today
periods before the advent of futures or program trading were often more volatile usually when fundamental market conditions were <unk> change N N and N for example
it is interesting to see the fundamental stock pickers <unk> <unk> on program trading when the markets decline while <unk> the great values still <unk> as the markets rise
could rising volatility possibly be related to uncertainty about the economics of stocks instead of the evil <unk> of program-trading <unk>
some of the proposed <unk> for what is labeled program-trading volatility could be far worse than the perceived problem
in using program trading as a <unk> boy <unk> investors stand to gain the high ground in wooing small investors for their existing <unk> products
they may however risk bringing some damaging <unk> from outside the markets themselves
how does a nice new tax say N N on any financial transaction sound
that ought to make sure we 're all thinking for the long term
getting a level playing field
this argument is perhaps the most interesting one for <unk> program trading not because of its merits but because of the firms <unk> the cause
the <unk> of these reformers are money managers who cater to smaller investors
they continually advise their clients on which individual stocks to buy or sell while their clients continue to hope for superior performance
even with mutual funds the little investor continues to <unk> high fees high commissions and poor performance while <unk> managers slowly <unk> a better record with lower fees lower commissions and less risk
yet our efforts are somehow less noble than those of an investment expert <unk> <unk> press <unk> on each company he follows
almost all new regulation is introduced in the interests of protecting the little guy and he invariably is the one least able to cope with its consequences
if spreads available from index arbitrage are so enormous surely any sizable mutual-fund company could profit from offering it to small investors
the sad reality is that the retail investor continues to pursue <unk> performers first while leaving institutions to <unk> with basis points of performance on large sums of money quarter by quarter
<unk> index funds just are n't <unk> enough to justify the high fees and commissions that retail customers frequently pay and that institutional customers refuse to pay
each new trading <unk> is likely to be beaten by institutions seeking better ways to serve their <unk> clients here or overseas
<unk> new trading <unk> will only make things harder on the least sophisticated investors
so what is next for program trading
left to its own devices index arbitrage will become more and more efficient making it harder and harder to do profitably
spreads will become so tight that it wo n't matter which market an investor chooses arbitrage will prevent him from gaining any temporary profit
if government or private <unk> insist however on introducing greater <unk> between the markets limits on price moves <unk> execution higher margin requirements taxation etc. the end loser will be the markets themselves
instead we ought to be inviting more liquidity with cheaper ways to trade and transfer capital among all participants
mr. allen 's pittsburgh firm advanced investment management inc. <unk> program trades for institutions
some democrats in congress are warning that a complicated new funding device for the two federal antitrust agencies could result in further cutbacks in a regulatory area already reduced sharply in recent years
the funding mechanism which has received congressional approval and is expected to be signed by president bush would affect the antitrust operations of the justice department and the federal trade commission
as a part of overall efforts to reduce spending congress cut by $ N million the bush administration 's request for antitrust enforcement for fiscal N which began oct. N
to offset the reduction congress approved a $ N fee that investors and companies will have to pay each time they make required filings to antitrust regulators about mergers acquisitions and certain other transactions
some democrats led by rep. jack brooks d. texas unsuccessfully opposed the measure because they fear that the fees may not fully make up for the budget cuts
but justice department and ftc officials said they expect the filing fees to make up for the budget reductions and possibly exceed them
it could operate to <unk> our budget james <unk> the justice department 's antitrust chief said in an interview
under measures approved by both houses of congress the administration 's request for $ N million for the antitrust division would be cut $ N million
the ftc budget request of $ N million about $ N million of which would go for antitrust enforcement would also be cut by $ N million
the administration had requested roughly the same amount for antitrust enforcement for fiscal N as was appropriated in fiscal N
the offsetting fees would apply to filings made under the hart-scott-rodino act
under that law parties proposing mergers or acquisitions valued at $ N million or more must notify ftc and justice department antitrust regulators before completing the transactions
currently the government charges nothing for such filings
proponents of the funding arrangement predict that based on recent filing levels of more than N a year the fees will yield at least $ N million this fiscal year or $ N million more than the budget cuts
when you do that there is not a cut but there is in fact a program increase of $ N million each for the ftc and the justice department rep. neal smith d. iowa said during house debate
but rep. don edwards d. calif responded that a recession could <unk> merger activity reducing the amount of fees collected
the antitrust staffs of both the ftc and justice department were cut more than N N in the reagan administration and enforcement of major merger cases fell off drastically during that period
today is not the time to signal that congress in any way sanctions the dismal state into which antitrust enforcement has fallen mr. edwards argued
any money in excess of $ N million collected from the fees in fiscal N would go to the treasury at large
corporate lawyers said the new fees would n't inhibit many mergers or other transactions
though some lawyers reported that prospective <unk> were scrambling to make filings before the fees take effect government officials said they had n't noticed any surge in filings
fall ballot issues set a record for <unk> elections
<unk> elections attract relatively few ballot issues
but the N fall total of N while well below N activity shows a steady <unk> up in citizen <unk> and initiatives says patrick <unk> editor of family law and democracy report
he says the N <unk> issues on state <unk> this fall represent the most in any <unk> this decade
ballot questions range from a maine initiative on banning cruise missiles to a <unk> on increasing the north <unk> income tax
ballot watchers say attention already is focused on the N elections
in california two petition drives for next year 's election are essentially finished says david <unk> author of citizen lawmakers
mr. <unk> cites three completed efforts in oklahoma
hot ballot topics are expected to be abortion the environment and insurance reform
taking a <unk> from california more politicians will launch their campaigns by backing initiatives says david <unk> of <unk> young university
photograph collecting gains new <unk> as prices rise
price records are being set at auctions this week
at christie 's a <unk> of N prints from alfred <unk> 's equivalents series sold for $ N a <unk> record
other works also have been exceeding price estimates
in part prices reflect development of a market structure based on such <unk> as the number of prints
this information used to be poorly <unk> and largely <unk> says beth <unk> of sotheby 's
there is finally some sort of sense in the market she says
corporations and <unk> are among the serious buyers giving greater market stability says robert <unk> of the photograph <unk>
when i see prints going into the hands of institutions i know they are n't going to come back on the market
most in demand classic photographs by masters such as <unk> and man ray
but much contemporary work is also <unk> a great deal of money says miles <unk> of the international center of photography
dialing N brings callers a growing number of services
currently a $ N <unk> business N telephone service is expected to hit $ N million next year and near $ N billion by N as uses for the service continue to expand says joel gross of donaldson lufkin & jenrette inc
the service which costs the caller from N cents to $ N a minute currently is dominated by celebrity <unk> <unk> and <unk> lines
but more serious applications are in the wings and that is where the future growth is expected
i 'm starting to see more business transactions says <unk> west of american telephone & telegraph co. noting growing interest in use of N service for stock sales software <unk> and even service contracts
colleges she says are <unk> registration through N service
charities test the waters but they face legal barriers to electronic fund raising
the thing that will really break this market right open is merchandising ms. west says
much of the N service will <unk> to N predicts jack <unk> general manager of us <unk> 's N product
family <unk> are improving recovery rates of patients at columbia hospital milwaukee
patients who receive <unk> or <unk> visitors are found to have lower blood pressure and improved appetite and be more <unk> to therapy says mary ann <unk> program coordinator
tired of trimming
<unk> <unk> & co. offers a <unk> christmas tree that <unk> the need to string lights
the $ N tree is designed to send <unk> changing <unk> light to dozens of <unk> <unk>
medicine transplant growth of japanese trade and travel <unk> beth israel medical center new york to set up a <unk> medical practice
funded by a $ N million gift from <unk> marine & fire insurance the service will follow japanese medical <unk> including emphasis on <unk> medicine
diaper services make a comeback amid growing environmental concerns
concerned about shrinking <unk> and the safety of chemicals used in <unk> <unk> parents are returning to the <unk> diaper
tiny <unk> inc. campbell calif. says business is up N N in the past year
we 're gaining N new customers each week says jack <unk> of general health care corp. <unk> n.j