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CAPIS Concourse IT Update – Migrating from TLS 1.1

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posted by CAPIS on 07/07/2022 at 4:05 pm
by CAPIS on 07/07/2022

Effective Monday, August 29, 2022, the websites concourse.capis.com and capisapi.capis.com will no longer be accessible using the Transport Layer Security (TLS) 1.1 protocol. CAPIS will disable TLS 1.1, and firms using that protocol will not be able to establish connectivity to the CAPIS secure web servers. In order to continue accessing these CAPIS websites, firms must migrate to TLS version 1.2 (or greater) by August 29, 2022.

Effective Monday, August 29, 2022, the websites concourse.capis.com and capisapi.capis.com will no longer be accessible using the Transport Layer Security (TLS) 1.1 protocol. CAPIS will disable TLS 1.1, and firms using that protocol will not be able to establish connectivity to the CAPIS secure web servers. In order to continue accessing these CAPIS websites, firms must migrate to TLS version 1.2 (or greater) by August 29, 2022.

April Research Briefing RECAP: MPP Says 2022 Is A Tale of Two Halves  

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posted by CAPIS on 04/22/2022 at 2:05 pm
by CAPIS on 04/22/2022

Last week, we held our April research briefing, featuring guest speakers John Fagan and Brendan Walsh, co-founders of Markets Policy Partners (MPP). MPP is a Washington, D.C.-based independent advisory service that informs clients on matters at the intersection of markets and policy, and in the public sector.   Click here for a video of the research call   MPP’s presentation addressed the following topics:   Tectonic Shift by the Federal Reserve [2:57] MPP said the FOMC has moved definitively towards draining liquidity from the economy amid the current supply-driven shock in the production chain. [3:35] While the markets and growth surge in the first half of the year, expect the second half to be challenging growth-wise and will be choppy. [6:05] The Federal Reserve will “take every rate hike” the markets will allow – meaning the FOMC might tighten monetary policy even faster and more aggressively than originally forecast. [6:35] Core inflation may be hitting its peak for the year and supply-side bottlenecks will get worse – spurred in part by China’s “zero-COVID” tolerance policy. [8:10] Stagflation is the new buzzword amid slower growth expectations. [9:05] The FOMC could raise rates by more than 50bps at a time, possibly 75bps,…

Last week, we held our April research briefing, featuring guest speakers John Fagan and Brendan Walsh, co-founders of Markets Policy Partners (MPP). MPP is a Washington, D.C.-based independent advisory service that informs clients on matters at the intersection of markets and policy, and in the public sector.   Click here for a video of the research call   MPP’s presentation addressed the following topics:   Tectonic Shift by the Federal Reserve [2:57] MPP said the FOMC has moved definitively towards draining liquidity from the economy amid the current supply-driven shock in the production chain. [3:35] While the markets and growth surge in the first half of the year, expect the second half to be challenging growth-wise and will be choppy. [6:05] The Federal Reserve will “take every rate hike” the markets will allow – meaning the FOMC might tighten monetary policy even faster and more aggressively than originally forecast. [6:35] Core inflation may be hitting its peak for the year and supply-side bottlenecks will get worse – spurred in part by China’s “zero-COVID” tolerance policy. [8:10] Stagflation is the new buzzword amid slower growth expectations. [9:05] The FOMC could raise rates by more than 50bps at a time, possibly 75bps,…

Q1 Market Trends – Part 2

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posted by CAPIS on 04/06/2022 at 10:13 am
by CAPIS on 04/06/2022

There is a lot to discuss when we look back at the first quarter. In the second part of our video series, we look at significant factors that impacted the US market. And we share some multi-year analyses of trade data, including commissions, trade volumes, and shares. Click here to see the first video in the series.     For reference, we used the CAPIS Ally universe for our analysis. The data represents $609.7MM in commissions, $2.2T in trades, and 41.7MM shares across more than 9.6MM trades for the period reviewed.

There is a lot to discuss when we look back at the first quarter. In the second part of our video series, we look at significant factors that impacted the US market. And we share some multi-year analyses of trade data, including commissions, trade volumes, and shares. Click here to see the first video in the series.     For reference, we used the CAPIS Ally universe for our analysis. The data represents $609.7MM in commissions, $2.2T in trades, and 41.7MM shares across more than 9.6MM trades for the period reviewed.

Highlights From the 2022 STA DC Spring Update

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posted by CAPIS on 04/04/2022 at 9:20 am
by CAPIS on 04/04/2022

At CAPIS, we’re striving to engage market debate, promote critical thinking and be objective. To that end, the Security Traders Association recently held its Virtual Washington DC Spring 2022 Update via webinar and CAPIS was in attendance. We are pleased to provide select speaker highlights from the day-long event. (Editor’s Note: CAPIS has shortened some quotes and added context when applicable.) Market Structure “The sub-penny trading has been a driver of trading activity on dark pools. Market makers and participants in dark pools can step ahead of the exchanges and trade in sub-pennies. I believe it is time to revisit this rule.” “The old diversity rule did little to define diversity, so companies had little guidance & disclosures were of little value to investors. The Nasdaq Rule on board diversity is critical b/c it spells out what is required of companies, holding firms accountable.” Representative Gregory Meeks “Not terribly valuable in fostering competition is changes to the order protection rule. The SEC should focus on addressing the costs directly, not changing the rules around to require an exchange have a certain market share in order to enjoy order protection.” “Most valuable would be changes in tick size rules.” “The commissioner…

At CAPIS, we’re striving to engage market debate, promote critical thinking and be objective. To that end, the Security Traders Association recently held its Virtual Washington DC Spring 2022 Update via webinar and CAPIS was in attendance. We are pleased to provide select speaker highlights from the day-long event. (Editor’s Note: CAPIS has shortened some quotes and added context when applicable.) Market Structure “The sub-penny trading has been a driver of trading activity on dark pools. Market makers and participants in dark pools can step ahead of the exchanges and trade in sub-pennies. I believe it is time to revisit this rule.” “The old diversity rule did little to define diversity, so companies had little guidance & disclosures were of little value to investors. The Nasdaq Rule on board diversity is critical b/c it spells out what is required of companies, holding firms accountable.” Representative Gregory Meeks “Not terribly valuable in fostering competition is changes to the order protection rule. The SEC should focus on addressing the costs directly, not changing the rules around to require an exchange have a certain market share in order to enjoy order protection.” “Most valuable would be changes in tick size rules.” “The commissioner…

CASE STUDY Part 4: Outsourced Trading for Wrap and Separately Managed Accounts (SMA)

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posted by CAPIS on 03/30/2022 at 9:07 am
by CAPIS on 03/30/2022

This article was written by Martin Coughlan, CFA, CAIA. Martin has spent over twenty years working at asset management firms globally.    Outsourced Trading for Wrap and Separately Managed Accounts (SMA) In Part 3 of our series, we discussed some of the common concerns investment managers have in terms of outsourced trading and how those concerns can be allayed. In this final part of our series, we will look at one specific challenge that managers face when considering outsourced trading – how outsourced trading can be effectively implemented for Wrap and SMAs.   An overview of Wrap and SMAs Wrap and SMA accounts continue to be a very important offering in the marketplace with combined Q3 AUM in the United States of approximately $10 plus trillion from the Money Management Institute. Both vehicles facilitate individuals that require a more customized approach and those that wish to solely own securities rather than units of a mutual fund or other fund vehicle. They can also be used to allow more effective tax management for High-Net-Worth investors. While the terms are often used interchangeably, there is a difference. With a Wrap account, a financial advisor may serve as the account’s investment manager, selecting individual…

This article was written by Martin Coughlan, CFA, CAIA. Martin has spent over twenty years working at asset management firms globally.    Outsourced Trading for Wrap and Separately Managed Accounts (SMA) In Part 3 of our series, we discussed some of the common concerns investment managers have in terms of outsourced trading and how those concerns can be allayed. In this final part of our series, we will look at one specific challenge that managers face when considering outsourced trading – how outsourced trading can be effectively implemented for Wrap and SMAs.   An overview of Wrap and SMAs Wrap and SMA accounts continue to be a very important offering in the marketplace with combined Q3 AUM in the United States of approximately $10 plus trillion from the Money Management Institute. Both vehicles facilitate individuals that require a more customized approach and those that wish to solely own securities rather than units of a mutual fund or other fund vehicle. They can also be used to allow more effective tax management for High-Net-Worth investors. While the terms are often used interchangeably, there is a difference. With a Wrap account, a financial advisor may serve as the account’s investment manager, selecting individual…

Q1 Market Trends – Part 1

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posted by CAPIS on 03/29/2022 at 10:13 am
by CAPIS on 03/29/2022

There is a lot to discuss when we look back at the first quarter. In the first part of our video series, we look at significant factors that impacted the US market. And we share some multi-year analyses of trade data, including commissions, trade volumes, and shares.   For reference, we used the CAPIS Ally universe for our analysis. The data represents $609.7MM in commissions, $2.2T in trades, and 41.7MM shares across more than 9.6MM trades for the period reviewed.

There is a lot to discuss when we look back at the first quarter. In the first part of our video series, we look at significant factors that impacted the US market. And we share some multi-year analyses of trade data, including commissions, trade volumes, and shares.   For reference, we used the CAPIS Ally universe for our analysis. The data represents $609.7MM in commissions, $2.2T in trades, and 41.7MM shares across more than 9.6MM trades for the period reviewed.

March Research Briefing RECAP: Inflation Takes Center Stage Despite Extraneous Events

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posted by CAPIS on 03/17/2022 at 4:49 pm
by CAPIS on 03/17/2022

This article was penned by CAPIS   CAPIS held its March research call, featuring Nicholas Colas and Jessica Rabe, Co-Founders of DataTrek Research. DataTrek is a New York-based independent research advisory service providing unbiased data analysis, helping investors make the investment process more profitable, robust, and efficient. Click here for a video of the research call Colas and Rabe’s presentation addressed the following topics: Russia/Ukraine Crisis Will Not Result in WWIII Colas opened with a statistic citing the VIX stands at 27 now, higher than in previous rising rate environments due to the conflict in Europe. The Federal Reserve since 1990 has never begun raising rates when the VIX was over 22. (3:37) Equities are certainly more volatile now but that is due to the confluence of rising oil prices, the Russia/Ukraine conflict, higher inflation overall and China. (5:05) We are currently in an economic environment dominated by uncertainty. (5:15) Despite the negative humanitarian effects of the current Russia/Ukraine, the stock markets don’t believe there will be a “WWW III-type” event and this crisis is not existential and can be resolved. (6:18) Europe not the U.S. Faces Real Risk of Recession Colas said that economic slowdowns could hit globally, Europe…

This article was penned by CAPIS   CAPIS held its March research call, featuring Nicholas Colas and Jessica Rabe, Co-Founders of DataTrek Research. DataTrek is a New York-based independent research advisory service providing unbiased data analysis, helping investors make the investment process more profitable, robust, and efficient. Click here for a video of the research call Colas and Rabe’s presentation addressed the following topics: Russia/Ukraine Crisis Will Not Result in WWIII Colas opened with a statistic citing the VIX stands at 27 now, higher than in previous rising rate environments due to the conflict in Europe. The Federal Reserve since 1990 has never begun raising rates when the VIX was over 22. (3:37) Equities are certainly more volatile now but that is due to the confluence of rising oil prices, the Russia/Ukraine conflict, higher inflation overall and China. (5:05) We are currently in an economic environment dominated by uncertainty. (5:15) Despite the negative humanitarian effects of the current Russia/Ukraine, the stock markets don’t believe there will be a “WWW III-type” event and this crisis is not existential and can be resolved. (6:18) Europe not the U.S. Faces Real Risk of Recession Colas said that economic slowdowns could hit globally, Europe…

CASE STUDY Part 3: Objections to Outsourcing

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posted by CAPIS on 03/15/2022 at 11:20 am
by CAPIS on 03/15/2022

This article was written by Martin Coughlan, CFA, CAIA. Martin has spent over twenty years working at asset management firms globally.    In part 2 of our series, we discussed the reasons why investment managers may wish to consider outsourced trading. In this paper, we will look at the common objections we hear from investment firms and the areas they should focus their due diligence on as they assess outsourced trading providers. Business structure conflicts of interest and execution capabilities We believe that it is imperative that investment managers investigate potential conflicts of interest fully. While there are a significant number of firms offering outsourced trading capabilities today, we believe managers should focus their due diligence on agency only firms that do not engage in proprietary trading or investment banking activities. It is critical that your outsourced partner is unconflicted in terms of flow. Attention should be paid to ensuring that there are no internally developed algorithms, ownership of any trading pools, or pledges to any pools that could introduce potential conflicts of interest. Strong consideration also needs to be given to the breath of trading venues utilized across algo suites, ECNs, ATS’, dark pools, and market makers   Best execution…

This article was written by Martin Coughlan, CFA, CAIA. Martin has spent over twenty years working at asset management firms globally.    In part 2 of our series, we discussed the reasons why investment managers may wish to consider outsourced trading. In this paper, we will look at the common objections we hear from investment firms and the areas they should focus their due diligence on as they assess outsourced trading providers. Business structure conflicts of interest and execution capabilities We believe that it is imperative that investment managers investigate potential conflicts of interest fully. While there are a significant number of firms offering outsourced trading capabilities today, we believe managers should focus their due diligence on agency only firms that do not engage in proprietary trading or investment banking activities. It is critical that your outsourced partner is unconflicted in terms of flow. Attention should be paid to ensuring that there are no internally developed algorithms, ownership of any trading pools, or pledges to any pools that could introduce potential conflicts of interest. Strong consideration also needs to be given to the breath of trading venues utilized across algo suites, ECNs, ATS’, dark pools, and market makers   Best execution…

CAPIS Supports Young Women’s Preparatory Network 2022 STEAM Challenge

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posted by CAPIS on 02/25/2022 at 10:56 am
by CAPIS on 02/25/2022

At CAPIS, we understand the importance of giving back. For years, participating in philanthropic events has been a part of our core values, we are proud to support organizations who specifically target improving the lives of women and children. In keeping with this tradition, CAPIS again will be making a financial contribution to the Young Women’s Preparatory Network (YWPN) and is a proud sponsor of its STEAM Challenge, an event designed to develop and teach concepts in science, technology, engineering and math through interactive activities, encouraging competition and community awareness. The 2022 YWPN STEAM Challenge will take place virtually and will be a fun-filled and educational day of team presentations of innovative STEAM ideas, friendly competition and community awareness. It will take place on Saturday, February 26, 2022, NorthPark Center, Dallas, Tx. Between 1-4 p.m. “CAPIS is a proud supporter of the Young Women’s Preparatory Network,” Ann Sebert, Chief Executive Officer at CAPIS said. “The support that YWPN provides for young women in our community is unparalleled and we are thrilled to be a part of their success. It’s all part of the CAPIS Difference – committing to great relationships in our community and not just in the financial industry.”…

At CAPIS, we understand the importance of giving back. For years, participating in philanthropic events has been a part of our core values, we are proud to support organizations who specifically target improving the lives of women and children. In keeping with this tradition, CAPIS again will be making a financial contribution to the Young Women’s Preparatory Network (YWPN) and is a proud sponsor of its STEAM Challenge, an event designed to develop and teach concepts in science, technology, engineering and math through interactive activities, encouraging competition and community awareness. The 2022 YWPN STEAM Challenge will take place virtually and will be a fun-filled and educational day of team presentations of innovative STEAM ideas, friendly competition and community awareness. It will take place on Saturday, February 26, 2022, NorthPark Center, Dallas, Tx. Between 1-4 p.m. “CAPIS is a proud supporter of the Young Women’s Preparatory Network,” Ann Sebert, Chief Executive Officer at CAPIS said. “The support that YWPN provides for young women in our community is unparalleled and we are thrilled to be a part of their success. It’s all part of the CAPIS Difference – committing to great relationships in our community and not just in the financial industry.”…

ADVISORY NOTICE: HKEX Announces Change in FRC Transaction Fees Effective Jan 1, 2022

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posted by CAPIS on 12/24/2021 at 11:05 am
by CAPIS on 12/24/2021

Please see Trading Notice Below from the Hong Kong Stock Exchange Contact our trading desk for further information on the proper booking of stamp duties, taxes, and fees in international stocks at 866.349.6216 or intl@capis.com Subject: FRC Transaction Levy of .00015% for a new combined rate of .13785%. General The following fees apply to each security transaction1: Brokerage2 Effective 1 April 2003, the brokerage of security transactions becomes freely negotiable between brokers and their clients. SFC Transaction Levy Effective 1 November 2014, a SFC Transaction Levy of 0.0027% (rounded to the nearest cent) is charged per side of the consideration of a transaction, and the amount is collected for the SFC. There is no SFC Transaction Levy on Securities Market Maker (SMM) transactions. To simplify operations with a unified basis for fee calculation for transactions in non-Hong Kong dollar currencies, the Exchange will adopt the same exchange rates as for stamp duty calculation purpose for calculating SFC Transaction Levy if applicable. Investor Compensation Levy Effective 19 December 2005, the payment of Investor Compensation Levy (i.e. 0.002% per side of the consideration of a transaction, rounded to the nearest cent) has been suspended by the SFC. To simplify operations with a…

Please see Trading Notice Below from the Hong Kong Stock Exchange Contact our trading desk for further information on the proper booking of stamp duties, taxes, and fees in international stocks at 866.349.6216 or intl@capis.com Subject: FRC Transaction Levy of .00015% for a new combined rate of .13785%. General The following fees apply to each security transaction1: Brokerage2 Effective 1 April 2003, the brokerage of security transactions becomes freely negotiable between brokers and their clients. SFC Transaction Levy Effective 1 November 2014, a SFC Transaction Levy of 0.0027% (rounded to the nearest cent) is charged per side of the consideration of a transaction, and the amount is collected for the SFC. There is no SFC Transaction Levy on Securities Market Maker (SMM) transactions. To simplify operations with a unified basis for fee calculation for transactions in non-Hong Kong dollar currencies, the Exchange will adopt the same exchange rates as for stamp duty calculation purpose for calculating SFC Transaction Levy if applicable. Investor Compensation Levy Effective 19 December 2005, the payment of Investor Compensation Levy (i.e. 0.002% per side of the consideration of a transaction, rounded to the nearest cent) has been suspended by the SFC. To simplify operations with a…

September Research Call RECAP: DataTrek Says Market Recovery Steady as Few Disruptions Seen

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posted by CAPIS on 09/21/2021 at 10:26 am
by CAPIS on 09/21/2021

This article was penned by CAPIS Last week CAPIS held its September research call, featuring Nicholas Colas and Jessica Rabe, Co-Founders of DataTrek Research. DataTrek is a New York-based independent research advisory service providing unbiased data analysis, helping investors make the investment process more profitable, robust, and efficient. Click here for a video of the research call Colas and Rabe’s presentation addressed the following topics: Millennial Investors Resemble Day Traders and Are Here to Stay (3:11) Colas opened with a statistic from Robinhood: the favored trading app for younger investors has reached 18 million funded user accounts but has not grown further since its peak in January 2021. (4:06) The retail trader nowadays buys market dips — rather than a more traditional buy-and-hold strategy. (6:05) These newer investors’ trading behavior isn’t novel as it resembles the day traders of yore – buying at the open and selling at the close. On the macro level, these types of traders will not disrupt the capital markets. (6:22) These nascent market participants favor environmental, social, and governance (ESG) investing, causing firms like BlackRock to ramp up product offerings to address the shift in investor priorities. (7:37) They also favor companies they can understand…

This article was penned by CAPIS Last week CAPIS held its September research call, featuring Nicholas Colas and Jessica Rabe, Co-Founders of DataTrek Research. DataTrek is a New York-based independent research advisory service providing unbiased data analysis, helping investors make the investment process more profitable, robust, and efficient. Click here for a video of the research call Colas and Rabe’s presentation addressed the following topics: Millennial Investors Resemble Day Traders and Are Here to Stay (3:11) Colas opened with a statistic from Robinhood: the favored trading app for younger investors has reached 18 million funded user accounts but has not grown further since its peak in January 2021. (4:06) The retail trader nowadays buys market dips — rather than a more traditional buy-and-hold strategy. (6:05) These newer investors’ trading behavior isn’t novel as it resembles the day traders of yore – buying at the open and selling at the close. On the macro level, these types of traders will not disrupt the capital markets. (6:22) These nascent market participants favor environmental, social, and governance (ESG) investing, causing firms like BlackRock to ramp up product offerings to address the shift in investor priorities. (7:37) They also favor companies they can understand…

CAPIS Hires Eric Burt for Outsourced Trading Team

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posted by CAPIS on 09/17/2021 at 12:56 am
by CAPIS on 09/17/2021

DALLAS (September 17, 2021) – Capital Institutional Services, Inc. (“CAPIS”), an independent broker-dealer serving institutional investors, announced today that it has hired Eric Burt as Vice President and Trader on its Outsourced Trading desk. Prior to CAPIS, Burt was Head of Equities and Senior Trader with Fiera Capital. Before Fiera, he was Head Trader and Managing Director of EII Capital Management for 16 years. Eric graduated from Villanova University with a degree in History and Political Science. He maintains Series 7, 57, and 63 licenses. “Eric possesses all of the unique skills of a buy-side trading veteran along with the technical savvy to quickly learn and master our order management systems,” said Chris Hurley, CAPIS Director of Institutional Sales and Head of Outsourced Trading. “He covers accounts the way he liked to be covered during his tenure on the buy-side. Eric is a great fit and we look forward to a long and mutually beneficial relationship with him and his clients.” “I’m delighted to be joining the CAPIS family and a deep bench of traders that work tirelessly for the clients of the firm,” said Burt. “Joining the outsourced trading team allows me the opportunity to leverage 25 years of buy-side…

DALLAS (September 17, 2021) – Capital Institutional Services, Inc. (“CAPIS”), an independent broker-dealer serving institutional investors, announced today that it has hired Eric Burt as Vice President and Trader on its Outsourced Trading desk. Prior to CAPIS, Burt was Head of Equities and Senior Trader with Fiera Capital. Before Fiera, he was Head Trader and Managing Director of EII Capital Management for 16 years. Eric graduated from Villanova University with a degree in History and Political Science. He maintains Series 7, 57, and 63 licenses. “Eric possesses all of the unique skills of a buy-side trading veteran along with the technical savvy to quickly learn and master our order management systems,” said Chris Hurley, CAPIS Director of Institutional Sales and Head of Outsourced Trading. “He covers accounts the way he liked to be covered during his tenure on the buy-side. Eric is a great fit and we look forward to a long and mutually beneficial relationship with him and his clients.” “I’m delighted to be joining the CAPIS family and a deep bench of traders that work tirelessly for the clients of the firm,” said Burt. “Joining the outsourced trading team allows me the opportunity to leverage 25 years of buy-side…

August Research Call RECAP: Fairlead Strategies Says Market Technicals Favor Bulls

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posted by CAPIS on 08/25/2021 at 8:50 am
by CAPIS on 08/25/2021

Last week we held our August research call, featuring Fairlead Strategies Co-Founder Katie Stockton. Fairlead Strategies, LLC is a Connecticut-based independent advisory service providing unbiased technical analysis, helping investors manage risk and discover opportunities. Click here for a video of the research call Our own David Choate, COO and Executive Director of Trading and Sales, updated attendees about CAPIS’ daily Morning Holdings email which provides information on certain symbols. The email software sweeps information services at 6:30 am and can be accessed through CAPIS’ sales team. CAPIS continues to provide other high-quality digital content such as The Morning Note and commentary on its website.  (2:00) Katie Stockton’s presentation addressed the following topics: SPX and NDX Hovering at All Time Highs: According to Stockton, the S&P 500 index (SPX is in a long-term uptrend. There is room for improvement in the daily stochastic indicators she watches, but the market could hit 4600 by year-end. (5:20) As for the Nasdaq 100 (NDX), there’s been a loss of strength in the FAANG complex and there have been rotational pullbacks in the high-growth and cyclical sectors. This, she said, makes it difficult for portfolios to outperform if not exposed to the sector in favor at…

Last week we held our August research call, featuring Fairlead Strategies Co-Founder Katie Stockton. Fairlead Strategies, LLC is a Connecticut-based independent advisory service providing unbiased technical analysis, helping investors manage risk and discover opportunities. Click here for a video of the research call Our own David Choate, COO and Executive Director of Trading and Sales, updated attendees about CAPIS’ daily Morning Holdings email which provides information on certain symbols. The email software sweeps information services at 6:30 am and can be accessed through CAPIS’ sales team. CAPIS continues to provide other high-quality digital content such as The Morning Note and commentary on its website.  (2:00) Katie Stockton’s presentation addressed the following topics: SPX and NDX Hovering at All Time Highs: According to Stockton, the S&P 500 index (SPX is in a long-term uptrend. There is room for improvement in the daily stochastic indicators she watches, but the market could hit 4600 by year-end. (5:20) As for the Nasdaq 100 (NDX), there’s been a loss of strength in the FAANG complex and there have been rotational pullbacks in the high-growth and cyclical sectors. This, she said, makes it difficult for portfolios to outperform if not exposed to the sector in favor at…

ADVISORY NOTICE: HKEX Announces Increase of Stamp Duty on Stock Transactions Aug 1

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posted by CAPIS on 06/21/2021 at 11:49 am
by CAPIS on 06/21/2021

Please see Trading Notice below from the Hong Kong Stock Exchange Contact our trading desk for further information on the proper booking of stamp duties, taxes, and fees in international stocks at 866.349.6216 or intl@capis.com   Subject: Increase of Stamp Duty on Stock Transactions Enquiry: Participant General Enquiry Hotline1 (Tel : 2840 3626 E-mail : trd@hkex.com.hk) Exchange Participants (EPs) are requested to note that the Government published in The Gazette the “Revenue (Stamp Duty) Bill 2021“ (the “Bill”) on 5 March 2021, and on 2 June 2021 second and third readings have been passed by the Legislative Council, confirming that the Bill, will come into effect on 1 August 2021. Under the Bill, along with other amendments, the rate of Stamp Duty payable on contract notes for the sale or purchase of Hong Kong stocks (not being jobbing business) will be increased from 0.1% to 0.13%, as a percentage of transaction value (“stamp duty increase”). For details, please refer to the Government Press Release and the Bill. EPs are reminded to take all necessary actions to prepare for the stamp duty increase including enhancing their Broker Supplied Systems, back office systems, relevant applications and operational facilities. Olivia Mak Senior Vice…

Please see Trading Notice below from the Hong Kong Stock Exchange Contact our trading desk for further information on the proper booking of stamp duties, taxes, and fees in international stocks at 866.349.6216 or intl@capis.com   Subject: Increase of Stamp Duty on Stock Transactions Enquiry: Participant General Enquiry Hotline1 (Tel : 2840 3626 E-mail : trd@hkex.com.hk) Exchange Participants (EPs) are requested to note that the Government published in The Gazette the “Revenue (Stamp Duty) Bill 2021“ (the “Bill”) on 5 March 2021, and on 2 June 2021 second and third readings have been passed by the Legislative Council, confirming that the Bill, will come into effect on 1 August 2021. Under the Bill, along with other amendments, the rate of Stamp Duty payable on contract notes for the sale or purchase of Hong Kong stocks (not being jobbing business) will be increased from 0.1% to 0.13%, as a percentage of transaction value (“stamp duty increase”). For details, please refer to the Government Press Release and the Bill. EPs are reminded to take all necessary actions to prepare for the stamp duty increase including enhancing their Broker Supplied Systems, back office systems, relevant applications and operational facilities. Olivia Mak Senior Vice…

Employee Spotlight – Ben Jenkins, Director, Transition Management

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posted by CAPIS on 06/08/2021 at 10:02 am
by CAPIS on 06/08/2021

  At CAPIS, we put relationships first. We think of our team as a family, which is why it is important for us to not only get to know each member but also shine a spotlight on them. We spoke with Ben Jenkins, Director, Transition Management, who re-joined CAPIS at the end of 2020. Take a look at our conversation below to learn about why he returned to CAPIS after spending some time away, some of the biggest challenges and successes he’s experienced during his career and during the pandemic, as well as how he has learned to step out of his comfort zone. [Note: This conversation has been edited for length and clarity.] Q. How did you get interested in transition management and CAPIS? I first joined CAPIS in 2002 after working at a few start-ups. I found the job posting on www.Monster.com and was able to secure an interview. Transition management helps broaden my financial education through client engagement, which I really enjoy. The chance to help solve a problem drives my passion daily. Q. Why return to CAPIS after 16 years? CAPIS is where I started my career and my love of transition management. The opportunity to…

  At CAPIS, we put relationships first. We think of our team as a family, which is why it is important for us to not only get to know each member but also shine a spotlight on them. We spoke with Ben Jenkins, Director, Transition Management, who re-joined CAPIS at the end of 2020. Take a look at our conversation below to learn about why he returned to CAPIS after spending some time away, some of the biggest challenges and successes he’s experienced during his career and during the pandemic, as well as how he has learned to step out of his comfort zone. [Note: This conversation has been edited for length and clarity.] Q. How did you get interested in transition management and CAPIS? I first joined CAPIS in 2002 after working at a few start-ups. I found the job posting on www.Monster.com and was able to secure an interview. Transition management helps broaden my financial education through client engagement, which I really enjoy. The chance to help solve a problem drives my passion daily. Q. Why return to CAPIS after 16 years? CAPIS is where I started my career and my love of transition management. The opportunity to…

How Many Solutions Do Your Transition Managers Provide?

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posted by CAPIS on 05/18/2021 at 10:12 am
by CAPIS on 05/18/2021

(hint: the correct answer is more than one) Asset allocation is an essential part of every institutional investor’s strategy. But it is also an occasional activity for most, with months if not years between events. So, when events arise, it is common practice to look to the transition management community for guidance and assistance on the best approach to implement the change while minimizing costs and risks to the portfolio. Given the infrequency between events, asset owners may not always be ready to ask the most pertinent questions for the event. And, to be fair, these questions change based upon the unique structure of each transition (or asset allocation) event. While the phrase can be overused, there is no “one size fits all” solution for transitions; there is rarely just one solution possible. Recently a client approached us with a transition to move from an active (separate) account to a passive (commingled) fund. They asked for guidance from at least one other provider and received a single solution. In comparison, our response included seven strategies, ranging from near-instant equitization to a more delayed trade implementation. In each strategy, we outlined the requirements, the risks, and the benefits. Some of you…

(hint: the correct answer is more than one) Asset allocation is an essential part of every institutional investor’s strategy. But it is also an occasional activity for most, with months if not years between events. So, when events arise, it is common practice to look to the transition management community for guidance and assistance on the best approach to implement the change while minimizing costs and risks to the portfolio. Given the infrequency between events, asset owners may not always be ready to ask the most pertinent questions for the event. And, to be fair, these questions change based upon the unique structure of each transition (or asset allocation) event. While the phrase can be overused, there is no “one size fits all” solution for transitions; there is rarely just one solution possible. Recently a client approached us with a transition to move from an active (separate) account to a passive (commingled) fund. They asked for guidance from at least one other provider and received a single solution. In comparison, our response included seven strategies, ranging from near-instant equitization to a more delayed trade implementation. In each strategy, we outlined the requirements, the risks, and the benefits. Some of you…

CAPIS Ownership Succession Transition Plan

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posted by CAPIS on 05/04/2021 at 10:01 am
by CAPIS on 05/04/2021

May 4. 2021   Ownership Changes/Succession Strategy   To all CAPIS Employees/Clients: In a move designed to ensure our long-term success and stability, Capital Institutional Services, Inc. (CAPIS) is proud to announce the initiation of a two-step succession strategy.  It is important to note that the Potts family will retain control of the firm and that these changes will only serve to improve our core businesses: global execution services, commission management, outsourced trading, and transition management. Step One, characterized by the shift of majority ownership to Cullen Potts, was effective May 1, 2021.  Cullen has worked with CAPIS for over 20 years and brings a wealth of outside business experience to the table.  “Cullen’s enthusiastic, hands-on approach is well known within the CAPIS family.  We are excited to have Cullen taking the reins,” Ann Sebert, CEO. Step Two is Employee Ownership.  Targeting year end, CAPIS intends to implement employee ownership opportunities.  “While the structure and timing have not been finalized, it is my intent to provide ownership opportunities to those that have helped me build this wonderful organization,” Don Potts, Founder and Chairman of the Board. As a result of these exciting changes, CAPIS will be withdrawing our Women’s Business…

May 4. 2021   Ownership Changes/Succession Strategy   To all CAPIS Employees/Clients: In a move designed to ensure our long-term success and stability, Capital Institutional Services, Inc. (CAPIS) is proud to announce the initiation of a two-step succession strategy.  It is important to note that the Potts family will retain control of the firm and that these changes will only serve to improve our core businesses: global execution services, commission management, outsourced trading, and transition management. Step One, characterized by the shift of majority ownership to Cullen Potts, was effective May 1, 2021.  Cullen has worked with CAPIS for over 20 years and brings a wealth of outside business experience to the table.  “Cullen’s enthusiastic, hands-on approach is well known within the CAPIS family.  We are excited to have Cullen taking the reins,” Ann Sebert, CEO. Step Two is Employee Ownership.  Targeting year end, CAPIS intends to implement employee ownership opportunities.  “While the structure and timing have not been finalized, it is my intent to provide ownership opportunities to those that have helped me build this wonderful organization,” Don Potts, Founder and Chairman of the Board. As a result of these exciting changes, CAPIS will be withdrawing our Women’s Business…

Employee Spotlight – Jannette Vasquez, Manager of Client Services

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posted by CAPIS on 03/31/2021 at 9:20 am
by CAPIS on 03/31/2021

  At CAPIS, we put relationships first. We think of our team as a family, which is why it is important for us to get to know each member and shine a spotlight on them. We spoke with Jannette Vasquez, VP, Manager of Client Services, who has worked at CAPIS for 20 years. Take a look at our conversation below to learn about how she came to work at CAPIS, and some of the biggest challenges and successes she’s experienced over the past two decades, as well as her long-standing desire to keep the record straight.  [Note: This conversation has been edited for length and clarity.] Q: What piqued your interest in finance? How did you find yourself at CAPIS?  I didn’t have a large market background before CAPIS. Accounting-type work interested me, not so much finance and trading. The company I had been working for went through layoffs — I was an event planner for a property management company, and they weren’t doing great. A friend of mine worked at CAPIS in the trading group at the time and they were able to help make the connection.  I expressed to CAPIS’ CFO that when I used to balance my…

  At CAPIS, we put relationships first. We think of our team as a family, which is why it is important for us to get to know each member and shine a spotlight on them. We spoke with Jannette Vasquez, VP, Manager of Client Services, who has worked at CAPIS for 20 years. Take a look at our conversation below to learn about how she came to work at CAPIS, and some of the biggest challenges and successes she’s experienced over the past two decades, as well as her long-standing desire to keep the record straight.  [Note: This conversation has been edited for length and clarity.] Q: What piqued your interest in finance? How did you find yourself at CAPIS?  I didn’t have a large market background before CAPIS. Accounting-type work interested me, not so much finance and trading. The company I had been working for went through layoffs — I was an event planner for a property management company, and they weren’t doing great. A friend of mine worked at CAPIS in the trading group at the time and they were able to help make the connection.  I expressed to CAPIS’ CFO that when I used to balance my…

March Research Call Recap: Fairlead Strategies’ Katie Stockton on Long-Term Momentum

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posted by CAPIS on 03/23/2021 at 9:09 am
by CAPIS on 03/23/2021

This article was penned by CAPIS Last week we held our March research call, featuring Katie Stockton, founder of Fairlead Strategies. Stockton, a regular speaker on CAPIS research calls, is a renowned technical analyst who appears frequently on media outlets like CNBC. Click here for the research call video Our own Ed O’Dowd, Senior Vice President, Institutional Sales, started the call with an update on the day’s market activity – noting that despite pressure on the equities market, investors were still eager to purchase stocks (but with an eye to specific sectors). Furthermore, O’Dowd said that the Federal Reserve’s recent two-day meeting was now in the market’s rearview mirror without interest rate policy change, and that was a positive for stocks. Fairlead’s Stockton began her presentation by examining the market’s bearish moves in light of the spike in U.S. Treasury yields, saying that despite stocks suffering from a short-term oversold bias, the market remains solid moving forward. “We see long-term momentum to the upside continuing” for stocks, she said. This forecast for long-term strength, she added, will be supported by a continued decline in volatility (as measured by the VIX). “The market can avoid a ‘big’ correction in a lower…

This article was penned by CAPIS Last week we held our March research call, featuring Katie Stockton, founder of Fairlead Strategies. Stockton, a regular speaker on CAPIS research calls, is a renowned technical analyst who appears frequently on media outlets like CNBC. Click here for the research call video Our own Ed O’Dowd, Senior Vice President, Institutional Sales, started the call with an update on the day’s market activity – noting that despite pressure on the equities market, investors were still eager to purchase stocks (but with an eye to specific sectors). Furthermore, O’Dowd said that the Federal Reserve’s recent two-day meeting was now in the market’s rearview mirror without interest rate policy change, and that was a positive for stocks. Fairlead’s Stockton began her presentation by examining the market’s bearish moves in light of the spike in U.S. Treasury yields, saying that despite stocks suffering from a short-term oversold bias, the market remains solid moving forward. “We see long-term momentum to the upside continuing” for stocks, she said. This forecast for long-term strength, she added, will be supported by a continued decline in volatility (as measured by the VIX). “The market can avoid a ‘big’ correction in a lower…

Recapping “RIAs and Outsourced Trading: What You Need to Know To Navigate the Markets” 

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posted by CAPIS on 03/11/2021 at 9:09 am
by CAPIS on 03/11/2021

This article was penned by CAPIS On February 25th, CAPIS hosted the second of its virtual panels, “RIAs and Outsourced Trading: What You Need to Know To Navigate the Markets.” View the full recording here.  The panel featured: Mark Viani (Moderator), Director of Institutional Sales, ARC Product Manager, CAPIS  Matt Krebs, Director of Outsourced Trading, CAPIS  Chris Hurley, Director of Institutional Sales, CAPIS  David Krebs, Principal & COO at Signia Capital Management  Marc Van Rijssen, Director of Operations, UX Wealth Partners  The discussion centered on the operational processes and intricate requirements for when registered investment advisors (RIAs) consider outsourcing, either in whole or part, the aggregation of their institutional and wrap/custodial platform orders. On the subject of outsourced trading, Hurley said that clients are choosing to divert their attention from costly and time consuming operational and execution processes to focus on portfolio management and increased alpha generation. David Krebs estimated that the migration  of his prior  labor and capital intensive process to a complete outsourced trading solution saves his firm ~$150,000/year.  Other topics covered included: Operational complexities RIAs encounter when contemplating outsourcing. The aggregation and execution of institutional and wrap/custodial platform orders. Negotiating the elimination of “trade-away” penalties. Payment for…

This article was penned by CAPIS On February 25th, CAPIS hosted the second of its virtual panels, “RIAs and Outsourced Trading: What You Need to Know To Navigate the Markets.” View the full recording here.  The panel featured: Mark Viani (Moderator), Director of Institutional Sales, ARC Product Manager, CAPIS  Matt Krebs, Director of Outsourced Trading, CAPIS  Chris Hurley, Director of Institutional Sales, CAPIS  David Krebs, Principal & COO at Signia Capital Management  Marc Van Rijssen, Director of Operations, UX Wealth Partners  The discussion centered on the operational processes and intricate requirements for when registered investment advisors (RIAs) consider outsourcing, either in whole or part, the aggregation of their institutional and wrap/custodial platform orders. On the subject of outsourced trading, Hurley said that clients are choosing to divert their attention from costly and time consuming operational and execution processes to focus on portfolio management and increased alpha generation. David Krebs estimated that the migration  of his prior  labor and capital intensive process to a complete outsourced trading solution saves his firm ~$150,000/year.  Other topics covered included: Operational complexities RIAs encounter when contemplating outsourcing. The aggregation and execution of institutional and wrap/custodial platform orders. Negotiating the elimination of “trade-away” penalties. Payment for…

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