Author: Serkadis

Earlier today we had the chance to speak with Ben Bittrolff of Cyborg Trading and had the opportunity to discuss the world of high-frequency algorithmic trading at length.

Eventually we came across the topic of the Rambus (RMBS) “fat finger” incident in which RMBS stock fell nearly 35% in a matter of minutes, only to later rebound.

Traders called the incident a “fat finger” or human error. According to Ben, such is not the case.

As Ben argues, human interaction is largely gone from major trades involving large blocks of stock. An algorithm will not allow a huge order to go out all at once. If anything, it’ll slowly begin to breakup the block into smaller orders, whether you like it or not. The algorithms have fail-safes of sorts built into them, so when a large caliber order comes through, it’s immediately checked and processed into smaller orders.

A better theory for Rambus is that incorrect data was fed to an algo, setting off a chain reaction across the market. All an algo needs to go haywire is a false tip or data point and everything goes off. After all, it’s just a computer model and can’t play a market like the human mind can.

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See Also:

• Bill Miller Makes Or Breaks His Career With This Call: U.S. GDP Will Grow 7-10% And Stocks Will Melt Up
• Goldman Sachs Should Have Known Its Gun Was Loaded, And It Owes The Public Reparations
• Why You Don’t Stand A Chance Against The High-Frequency Traders

From Green Right Now Reports

Nile Delta. Photo: Jacques Descloitres, MODIS Land Rapid Response Team, NASA/GSFC

Half a million inhabitants displaced. About 70,000 jobs lost. A major source of both food and revenue drowned by salt water.

That’s the grim forecast for Egypt’s Nile Delta, as rising seawaters threaten the nation’s legendary  food-producing region.

Over the last century, the Mediterranean Sea has risen about six inches, according to a recent government study. The introduction of so much salt water already has forced some farmers off their land, while others struggle to find ways to protect their homes and livelihoods.

As industrialized nations wrestle with how to handle their impact on the environment, Egypt may be left to deal with the mistakes of others.

“Egypt is only responsible for 0.6 percent of global greenhouse gas emissions,” Mohammed al-Raey of the Regional Disaster Response Centre told the AFP news agency. “There is no doubt that (climate change) poses a threat to food security and a threat to social systems.”

Currently, the Nile Delta provides around a third of the crops for Egypt’s population of 80 million. Excess yields are exported, an important source of revenue.

While some farmers have simply given up, others of greater means attempt to adapt by covering their land with beds of sand to isolate it against seawater infiltrations. Engineering firms specializing in underwater projects are experimenting with more permanent fixes.

Hamza Associates has proposed to build a waterproof wall that would effectively separate the sea from the land and raise the shore by six feet. The project has been on the drawing board since 2007. Opponents argue that a wall would negatively impact Egypt’s Mediterranean beach resorts, crippling the lucrative tourist trade.

The National Venture Capital Association today released data that confirms what we’ve known for a while: Without 1999’s fat exits, the venture industry is looking pretty tired, from a returns perspective. The chart below shows how much every dollar invested in a venture fund returned to its limited partners; for example, in 1996 every dollar invested generated 4.7 times that back to the LP.  The solution for perking up returns seems to be a smaller industry and smaller funds seeking to place smaller amounts of money into startups, but I think there’s more to this story. I think we need a new startup myth.

We’re already seeing the habits of successful entrepreneurs change as a result of it being a lot cheaper to start up a business and easier to connect to an audience. Maybe the ideal technology startup doesn’t need venture capital. Maybe it can be bootstrapped or backed by angels. Maybe the ideal technology startup isn’t really about making it big through an initial public offering. Maybe it’s about selling a compelling feature to a larger company and setting the agenda at a Google or a Microsoft or a Cisco. Or perhaps success could be determined by getting a huge share of the market, releasing a product that changes everything or building out a business that employs a lot of people in your hometown?

Many of the definitions of a successful entrepreneur in the technology community are tied deeply to an IPO or a fat exit. But if the new tech startup myth doesn’t require a venture capital funding, then success doesn’t have to be defined by a relatively rapid, huge exit. I see plenty of startups that are doing well take venture capital even when they don’t have to, fueled by this desire to get bigger, faster. They are buying into the myth and may end up pushing their business in a direction they didn’t want it to go. This isn’t bad, but it’s also internalizing a “truth” popularized back in the mid-90s when being a technology startup was synonymous with having venture backing.

Thanks to the rush of capital, that time frame also made that myth of tech success  through a huge IPO look far more achievable than it really is. So I wonder if we need to redefine what a technology startup looks like and how it can achieve success? The venture capital world measures success in money, but there are plenty of businesses and entrepreneurs who think money is only part of the reason to built out a business. Readers, what do you think?

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Filed under: Spy Photos, Sedan, Performance, Paris Motor Show, BMW, Luxury

The phrase “new BMW M5” has always found the words “immense anticipation” lurking somewhere close by, and this latest version maintains that union. An HGH-injected iteration of the 5 Series was spotted apparently testing its traction control in some northern land of frosted flakes, wearing a very subtle look.

As outlined by CAR recently, the M-fünf is expected to pump out 570 horsepower through a direct-injected, twin-turbo V8. Auto Express suggests that the changes to the car will be less extensive than in previous editions. Still, this prototype is probably still missing a few of the burly bits we can expect to see on the final car, which should show its face at the Paris Motor Show later this year.

[Source: Auto Express]

Spy Shots: Next BMW M5 spotted braving the cold originally appeared on Autoblog on Mon, 01 Feb 2010 10:58:00 EST. Please see our terms for use of feeds.

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BlueKai, an online auction-based data exchange, has raised $21 million in funding from GGV Capital, Redpoint Ventures and Battery Ventures. This round of funding brings the startup’s total funding to $35 million.

Launched in 2008, BlueKai aggregates data from shopping and research activities across the Internet and provides this data on-demand for marketers, ad networks or publishers to boost the quality and scale of their ad targeting initiatives. Data buyers include many of the top ten US online ad networks. The new funding will be used to further product development. In particular, BlueKai is looking to incorporate realtime technologies into its platform.

The company recently launched an analytics feature that offers deep insight into consumer shopping behavior on the web. lBlueKai faces competition from fellow data exchange eXelate.

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While I’m busy playing both Bioshock 2 and Heavy Rain for future reviews, forum-goer and Ars Riot Squad member Casey Crouch has been playing the hell out of the PlayStation 3 exclusive MAG and has shared this thoughts on the final product.

At Sony’s 2008 E3 press conference, the company unveiled a new game from veteran developer Zipper, simply titled MAG. The game’s selling point is its 256-player capacity, where every gunshot and every explosion on the battlefield that you hear is the direct action of another player. After a long wait, Zipper’s freshman effort for the PlayStation 3 is on store shelves, and the war among global private military contractors is about to begin.

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Continue reading Microsoft busts out SideWinder X4 anti-ghosting keyboard

Microsoft busts out SideWinder X4 anti-ghosting keyboard originally appeared on Engadget on Mon, 01 Feb 2010 11:07:00 EST. Please see our terms for use of feeds.

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So it’s been a long day, you plop down on the couch, turn on the TV and grab your the laptop and a cold beverage. But while you’re watching that re-run of The Office on TBS you come across an awesome video on the web – probably the Engadget Show – and instead of watching that expensive 40-inch HDTV you end up starring at the smaller screen. Okay, so maybe that’s our specific scenario, but you’d probably hook up your laptop to a TV in a number of different situations if it didn’t involve cables, dongles, and extra software — basically if it were just easier. Well, it’s supposed to be with the $999 Toshiba Satellite E205 and its included Netgear Push2TV adapter.

Exclusively sold at Best Buy as part of its Blue Label program, the 15-inch Core i5-powered laptop is outfitted with Intel’s Wireless Display — what we’ve taken to calling WiDi — which wirelessly connects the laptop to any HDTV using the included Netgear with just the push of a button. But can you really watch Hulu on the big screen without leaving your couch? And is the E205 even a laptop you’d want to use in the first place? We’ve been “testing” it — or watching loads of web video on our TV — for the last couple of days to find out. Read on for our full review!

Continue reading Toshiba Satellite E205 (with Intel Wireless Display) review

Toshiba Satellite E205 (with Intel Wireless Display) review originally appeared on Engadget on Mon, 01 Feb 2010 10:46:00 EST. Please see our terms for use of feeds.

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Hitachi, Panasonic and Toshiba to deliver 60GHz wireless products in 2H 2010 originally appeared on Engadget on Mon, 01 Feb 2010 10:25:00 EST. Please see our terms for use of feeds.

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With more and more attention being paid to the efforts by firms like ACS:Law and DigiProtect to profit from blasting out hundreds of thousands of letters demanding payment to avoid file sharing lawsuits (which almost never seem to actually get filed), it seems that the companies involved in such things may finally be facing some pretty serious criticism that could force them to curb the practice. First up, politicians. A few different UK officials are coming out loudly against ACS:Law, with some even suggesting that the firm’s efforts are like a “scam” or “legal blackmail.”

Meanwhile perhaps the most surprising of all is that BPI, the UK’s version of the RIAA has also come out against the practice, saying that they don’t feel it is appropriate. Perhaps it’s not a huge surprise — given that the clients of ACS:Law/DigiProtect have tended to be video game and porn producers rather than the recording industry. However, when even the recording industry finds your actions against file sharing too draconian, it suggests you’ve really stepped over the line. At some point, you get the feeling that ACS:Law is going to get slapped down legally.

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It’s been a very long wait, but the time for White Knight Chronicles to go international is this week. In case JRPGs aren’t your cup of tea, then there’s S.T.A.L.K.E.R.: Call of Pripyat for your shooter fix,

Did you know that the PS3 was military ordnance? The Air Force Research Laboratory has been given a $2 million to build a Playstation 3 cluster out of about 2,000 PS3s. Their goal? To create a Neuromorphic system designed to find examples of images stored in a massive database using systems that “mimic human nervous systems.”

Keeping with the off-the-shelf mentality, the Air Force is using metal shelves found at most department stores to house the PS3 cluster. They are also using Linux, which is a free, open source operating system.

The system will use 300 to 320 kilowatts at full bore and about 10 percent to 30 percent of that in standby, when most supercomputers are using 5 megawatts, Linderman said. However, much of the time the cluster will only be running the nodes it needs and it will be turned off when not in use.

via Stars and Stripes

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In case you didn’t notice, CES 2010 was full of 3D. It was everywhere and the Acer GD235HZ is ready to play with all of it. The 23.6-inch, 1080p LCD is specifically designed to work nicely with NVIDIA’s 3D Vision active shutter glasses, but of course they don’t come with it.

The NVIDIA kit costs an extra $199 on top of the monitor’s $399 MSRP and require the right graphics card, too. But if you’re ready to test the 3D waters, this option is still less expensive even with all that extra stuff than refitting your home theater with a new 3D display and Blu-ray player. That is, of course, if you won’t mind watching Avatar on a 23.6-inch display. If this sounds like you, Amazon has the set available.

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Status makes it easier and quicker for Chicago-area residents to buy homes

Chicago Bancorp today announced that following a review by the Department of Housing and Urban Development (HUD) the bank will now be permitted to underwrite and close mortgage loans without prior HUD review.

According to the federal agency, participating in what is known as the Direct Endorsement Program “is a privilege accorded only to mortgagees who continue to demonstrate the ability to originate mortgage loans in accordance with HUD underwriting policy.”

To qualify, lenders must be able to demonstrate a history of conducting business “in accordance with sound lending ethics and standards.”

Stephen M. Calk, founder, chairman and CEO of Chicago Bancorp, said the Direct-Endorsement designation means the bank now will be able to serve prospective borrowers quicker and at a lower cost.

“Among other things, the designation allows us to grant low-cost Federal Housing Administration mortgage insurance to creditworthy homebuyers who nevertheless might not be able to meet conventional underwriting requirements,” Calk said.

“We are proud that while many lenders and banks are going out of business or being shut down or seized by the government, Chicago Bancorp is expanding and building on its stellar 15-year reputation.”

About Chicago Bancorp

Chicago Bancorp is one of the largest Independent Mortgage Banks in America. It offers an exceptional array of loan programs, including first-time homebuyer, VA, Jumbo and Asset-Based loans. As a mortgage bank, it controls the entire loan process – origination, processing, underwriting, closing and funding.

Its centralized loan operation is the industry’s benchmark for efficient service and its team of professional mortgage bankers and operations specialists is committed to closing loans by the requested date.

The men and women at Chicago Bancorp understand the concerns inherent to the loan process and are dedicated to simplifying that process so the borrower’s experience is uncomplicated and worry-free.

Nobody has any doubts that Facebook is huge at this point. The social network reports 350 million monthly active users, analytics firms show huge traffic coming its way each month and Facebook Connect is everywhere you look. But the numbers can be a bit misleading, registered users aren’t the same as the number of people actually using the service and … (read more)

In the ongoing sadness that is the legal battle between TechCrunch and Fusion Garage over the JooJoo tablet, Fusion Garage has moved to dismiss Michael Arrington’s lawsuit entirely.

The Fusion Garage claim seems to center around there being a “lack of any formal legal relationship or contract” between the two companies, despite their openly working jointly on JooJoo’s development. Much of the filing is the legalese version of JooJoo’s previous response, and in parts reads like a terribly depressing (and one-sided) history of what could have been a terrific device. That is, before it became pretty much irrelevant.

Event at Wyndham Glenview Suites to showcase 28 area restaurants

Organizers of the 3rd Annual Heart of Glenview are aiming to cure Chicago cabin fever Feb. 1 at the third annual Heart of Glenview.

The fund-raising event will showcase the house specialties of 28 top area restaurants at the Wyndham Glenview Suites here.

Proceeds from the event to be held from 5:30 to 8 p.m. will benefit seven local charities.

Since its inception, the Heart of Glenview event has raised more than $185,000.  100% of all ticket sales are donated to the charity, and everything at the event is donated.

A donation of $40 will give attendees access to all of the food and beverage offerings. The hotel has donated its 5,200-square foot Grand Ballroom to set up 28 mini-restaurants with tastings of everything from crab cakes to truffles, sushi to carrot soup.

Additionally, the hotel is donating 10 percent of all room proceeds on behalf of any guest who references the event.

“We all get a little crazed with cabin fever as the winter continues to drag on and the Heart of Glenview event is designed as a great excuse to get out and enjoy some great food and wine for a great cause,” said Maria Rucci-Blazek, Wyndham Hotel director of sales & marketing.

“People can pop over to the event or make a weekend out of it at the hotel, enjoying our indoor swimming pool and oversized suites.  Glenview is a tight-knit community and local resident Chris Krueger has created an event that has become one of the city’s most anticipated annual events.”

Cuisine from 8 different countries will be featured at the event, including Italian, German and French.

A full list of restaurants and dishes may be found at glenviewgivingfoundation.org/events.html.  Complimentary parking also is provided.

In addition to hosting the event, the Wyndham Glenview Suites will provide a 3-foot-high fountain featuring classic Belgian chocolate, as well as special appetizers.

Receiving charities include Clearbrook, Connections for the Homeless, Glenkirk, Northfield Township Food Pantry, Sister Paulanne’s Needy Fund, Wesley Child Care and Youth Services of Glenview/Northbrook.

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