If the rally plays out as expected, institutional traders will be breaking out the Ron Ron Juice to celebrate.
"We are speaking to institutional traders, hedge funds and market makers in designing these contracts, " says Trade Exchange spokesman Mike Knesevitch.
Institutional traders may need to be effective traders not just of forex, but also of commodities, options, derivatives and other financial instruments.
About half of options trading is done by institutional traders, with that number expected to increase to 70% in the next few years, Zubulake said.
Then there are the so-called dark pools, which are trading venues that don't quote bids and asks and are favored by hedge funds and other institutional traders that want to keep their trades quiet.
Remember that VIX calls and index puts are both often utilized as hedges against market weakness, and that a rise volume for both could be a sign that institutional traders are growing more bullish.
The competition among traders using electronic systems to offer and seek liquidity has made retail and institutional traders much better off now that they are being served by highly efficient computers instead of by human dealers and brokers.
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"It was a great head fake for Thain to set up this committee when he had the Archipelago deal in his back pocket, " says Seth Merrin , chief executive of Liquidnet, a privately held electronic marketplace for institutional traders and an NYSE rival.
But other big pistons in the economic machine--institutional stock traders--are now basing more decisions on a different type of Wal-Mart effect.
Professional and institutional forex traders like larger hedge funds have access to trading directly with forex dealers in the Interbank market.
He spends most of his days on the phone chatting up asset managers, traders and institutional investors.
For years, Japan's stock market has been dominated by day traders and foreign institutional investors.
With the individual investor missing, professional traders, hedge funds and institutional investors appear to have powered the market upward.
First, it reaches institutional and individual investors who are active traders, the first ones to receive and act instantly on the information (the innovators and the early adopters in Rogers Curve).
The main reason why margin requirements make little difference to share prices is that most prices are set by institutional investors, and not, as popular myth suggests, by crazy day traders.
Such a bounce would not surprise large traders who specialize in moving large volumes of shares of energy-related companies on behalf of institutional clients and their own accounts.
Mitchel Guttenberg, 41, an institutional client manager at UBS Securities, was charged with passing material--nonpublic information--to traders Erik Franklin, 39, formerly of Bear Stearns, and David Tavdy, 38, formerly of Assent, a New York broker-dealer.
As the stock market began to recover later that year, however, Datek's software for active traders began to garner a new following with its streaming data, the same bleeps and bongs as on institutional trading screens and best-execution order-routing software.
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