Whether you’re on Amtrack, Metro-North, NJ Transit, Chicago’s Metra, or the lawless LIRR, the rules of the quiet car stand: thou shalt not blast music so loud that people can hear it through your headphones, carry on an indoor conversation in an outdoor voice, and, most importantly, never, ever call someone on your cell phone and proceed to give them and, by extension, the rest of the car, the rundown of your entire day, including a detailed account of how you “marched into the boss’s office and told him, ‘I’ll get you the damned TPS report when I’m good and ready!’”
Umm so maybe someone wants to explain to me what happened to Glenn Hadden? He’s the head of rates at Morgan Stanley, formerly at Goldman, and he was just banned from all CME trading floors for ten days, which is a little funny because, like, what, was he going to walk around on an exchange floor? Like in a tour group? But actually he can’t use computers either,1 so basically, no Treasury futures for ten days. That starts in mid-July and, god, I’d like to be banned from a computer for ten days in July, but I guess the perks of being a successful rates trader include punishments like that.
Anyway the thing he did was … well here is the Notice of Disciplinary Action, which says that the thing he did was violate CBOT Rule 560, which requires that big “positions must be initiated and liquidated in an orderly manner.” So his offense was to trade in a disorderly way when he was at Goldman five years ago. Specifically:
December 19, 2008, during the final minute prior to expiration of the December 2008 10-Year Treasury futures contract, in order to cover the tail (a standard form of risk management activity associated with holding a Treasury futures position at expiry) for the position held by Goldman, Sachs & Co.’s Treasury Desk, Hadden, then a Treasury trader for Goldman Sachs & Co., executed a 100-lot market order, and then submitted a 50-lot limit order, which was only partially filled as a result of illiquidity in the market. During the course of these orders and subsequent fills, the market traded up 27+ ticks resulting in the final price of the December 2008 10-year Treasury futures contract settling above what was indicated by the December – March calendar spread.
So: he tried to buy a lot of Treasury futures real fast, and as a result of that he ended up paying too high a price for them. I guess that’s a little “disorderly” but also sort of underwhelming.2
What is going on? Obviously there are two possibilities: Read more »
To: ALL CBOT BUILDING TENANTS
From: Assoc. Director/General Manager, CBOT Building
Subject: ALERT…ALERT…ALERT !
We have been notified that there will be protesters attempting to perform a sit-in inside our building today at approximately 12:00 noon today, (CDT). Below is the security/safety plan that is being put in place at 11:00 a.m.: