Bundle of investment news: shooting in the usa, Ernst division & Young, US stock exchange bans

Bundle of investment news: shooting in the usa, Ernst division & Young, US stock exchange bans

Virtu Financial, Inc.VIRT23,47 $Buy Now

Bundle of investment news: shooting in the usa, Ernst division & Young, US stock exchange bans

The Charles Schwab CorporationSCHW62.10 $Buy

Bundle of investment news: shooting in the usa, Ernst division & Young, US stock exchange bans

Robinhood Markets, Inc.HOOD$7.71BuyService in partnership with Tinkoff Investments. Quotes are updated every 15 minutes

Mass shooting analytics, auditors get rid of their departments, change in the regulation of trading on the American stock exchange.

Disclaimer: when we talk about, that something has grown, we mean a comparison with the same quarter a year earlier. Since all issuers are from the USA, then all results in dollars. When creating the material, sources were used, inaccessible to users from the Russian Federation. We hope, Do you know, what to do.

Data on mass shooting in the United States: what you need to know

The U.S. government has shared with hail and the world data on mass shootings in schools. Recent cases of bloodshed in them intensified the debate about restrictions on the purchase of weapons in the United States.

Paradoxically, the intensification of discussions about restrictions on the purchase of weapons provokes a wave of purchases of weapons.: enthusiasts and ordinary buyers are beginning to buy weapons in large quantities, preparing for bans.

And this usually leads to an increase in quotations of gun companies.. But the last moment is no longer guaranteed on 100%: ESG-ideology in the investment world will inhibit the growth of quotations.

Bundle of investment news: shooting in the usa, Ernst division & Young, US stock exchange bans

Audit isolation: Ernst & Young and Deloitte get rid of their branches

In these two weeks, as many as two giants of the auditing world, Ernst & Young (EY) and Deloitte, talked about, to make their audit divisions separate companies.

The topic was first raised by EY, which, out of $40 billion in annual revenue, 13.6 billion is audited. Deloitte followed suit, in which out of about 50.5 billion in revenue, the audit gives a little less money - 10.5 billion.

Investment banks Goldman Sachs and J. P. Morgan Chase participate in discussions around the fate of EY, and one of the possible options is the IPO of the unit.

This whole story takes place against the backdrop of global complaints about the quality of EY's work., brilliantly passed through its audit fraudulent companies Wirecard and Luckin Coffee, and investigations by the U.S. Securities And Exchange Commission (SEC) in relation to the largest audit companies. In this regard, two conclusions arise.: tactical and global.

  System for shares

Tactical is that, that in the case of the IPO of the audit part of EY and, maybe, Deloitte will make good money. There is no doubt, what a strong, well-known brand and stable business will attract crowds of investors.

But the global conclusion is no longer so good.. The impression is made, that both companies want to get rid of a potentially dangerous asset and cut all ties with it: may be, the market expects a flurry of stories like Wirecard and Deloitte with EY preparing to wash their hands. Hope, i am wrong.

Bundle of investment news: shooting in the usa, Ernst division & Young, US stock exchange bans

I'm preventing you from flowing data: SEC is preparing to change the rules of the US stock market

SEC Chairman Gary Gensler this week proposed to change the structure of regulation of trading on the US stock exchange.

One of the main changes: send bids of retail investors to a special auction site, where trading platforms will offer the best stock prices and clients' trades will be executed, respectively, at better prices.

As long as things are different: over 90% transactions and orders are sent to the sites of large companies such as Virtu (NASDAQ: VIRT), who buy data about these orders from brokers – the so-called order flow fee – and, in fact, provide customers with promotions at a higher price, earning on the difference.

As a matter of fact, this proposal, if implemented, will divide market participants into winners and losers..

Nasdaq exchange operators are among the winners (NASDAQ: NDAQ) и Intercontinental Exchange (NYSE: ICE) will benefit from the influx of retail investors to their platforms. Retail investors, for obvious reasons, will also feel good.: Brokers, working without payment for the flow of orders, really provide customers with the best prices.

But brokers and high-frequency trading offices like Virtu will not be so good.: for them it is an important part of the business. And regular brokers like Charles Schwab (NYSE: BLACK) and Robinhood Markets (NASDAQ: HOOD) earn a lot of money, selling data to companies like Virtu.

In addition to business losses, there will also be regulatory risks: there is no question of a ban on the fee for the flow of orders, but brokers will need to disclose information about prices and in case of what to prove to regulators, that "we honestly offered customers the best prices, true true". I already foresee the resulting lawsuits and large fines for violations..

  Here it comes

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