High Speed Trading Comes Under Fire

If you missed the '60 Minutes' story last night don't worry, the news wire is full of stories about this subject today.  It really is a bit of a bombshell being revealed.

I worked in Financial Services for 5 years at a mutual fund company in downtown Boston so this story really captured my interest.

What are we talking about?

The stock market.  Buying.  Selling.  Front running.  High speed trading.

Let's look at the topic 'Front Running' for a minute.  Wikipedia helps us a bit here:

Front running is the illegal practice of a stockbroker executing orders on a security for its own account while taking advantage of advance knowledge of pending orders from its customers. When orders previously submitted by its customers will predictably affect the price of the security, purchasing first for its own account gives the broker an unfair advantage, since it can expect to close out its position at a profit based on the new price level.

So, what was the deal with the story yesterday?

Here is a good piece on Bloomberg that tells the story:

http://www.bloomberg.com/news/2014-03-30/high-frequency-traders-ripping-off-investors-michael-lewis-says.html

Here is a snippet from that piece:

The U.S. stock market is rigged when high-frequency traders with advanced computers make tens of billions of dollars by jumping in front of investors, according to author Michael Lewis, who spent the past year researching the topic for his new book “Flash Boys.”

While speed traders’ strategies, developed over the past decade with help from exchanges, are legal, “it’s just nuts” that they’re allowed, Lewis said during an interview televised yesterday on CBS Corp.’s “60 Minutes.” The tactics are too complicated for individual investors to understand, he said.

“The United States stock market, the most iconic market in global capitalism, is rigged,” ...

This is really quite a story.  More to come I'm sure.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0100 Microsoft's New Direction

Wow!

One hundred posts in the "Best Reading of the Day" category.  All done in less than a year.

Today we will look at Microsoft that recently made its office products available for iPad.  This is a significant break from the past where other Microsoft endeavors were always tied to Windows.  This move follows others, such as the renaming of Microsoft Windows Azure cloud services to just "Microsoft Azure", that indicate a break from the past.

Here is the article:

http://techcrunch.com/2014/03/30/the-resurgent-post-windows-microsoft/

Here is a snippet from that piece:

Microsoft had become an oft-ignored, behemoth to the North, despite $77 billion in revenue, $57 billion in gross profits and $21 billion in net income. It seemed that the mobile revolution had passed it by. Although Steve Ballmer was already making many of the right moves, it took new CEO Satya Nadella to fully accept that Microsoft had to move beyond Windows into a new future of apps and cloud services.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0099 Miscellaneous

I've found three brief entries that really piqued my interest in one way or another.

First is same-day delivery for shopping malls to help them manage the migration to eCommerce solutions:

http://www.retailonlineintegration.com/article/same-day-delivery-key-saving-malls/1

Here is a snippet from that piece:

Deliv, a provider of same-day delivery service via crowdsourced drivers, announced this past December that it's partnered with four of the country's largest mall operators to provide same-day delivery service to its shoppers.

Next is the latest data on Android and iOS usage.  This one breaks down web browsing by markets and has a nice image of the globe illustrating where each is winning (no other OS is in competition):

http://thenextweb.com/

Here is a snippet from that piece:

Analysts claim that the mobile platform war is over — or at least the battle is no longer so intense. Most of us are aware that Apple tends to be more dominant in Western markets — due to the premium cost of its devices — while Android has greater distribution in emerging markets thanks to a wider variation of products, which are available for lower prices.

But beyond the sales data, what are people actually using? Mobile technology firm dotMobi has taken a shot at visualizing the world based on device browsing rather than just sales figures.

Finally is a bit on omnichannel efforts by "Babies 'R Us":

http://www.mobilecommercedaily.com/

Here is a snippet from that piece:

Toys “R” Us continues to make mobile a key part of its omnichannel shopping experience with a new mobile application that makes it easy for parents to engage with the Babies “R” Us print catalog to find out more about specific products and purchase items directly from its Web site.

...

“Generally speaking an app is typically reserved for the more engaged shoppers,” Mr. Kahlain said. “If a retailer values loyalty and advocacy then an app serves as a vital touch point to reach, engage and foster deep meaningful relationships.”
Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0098 Tablet Usage

I missed this article for a couple of weeks but am glad I finally caught it.  Here is a snippet from that piece:

Tablets are increasingly becoming the preferred device for high-value mobile commerce purchases, according to transaction data from payment processor Adyen. The Amsterdam-based company tracks mobile payments through its quarterly Adyen Mobile Payments Index, which analyzes transactions on its global processing platform.

Here is the complete article:

http://www.mobilepaymentstoday.com/article/229429/Study-Tablets-see-higher-value-purchases-than-smartphones

I've written about the difference between Tablets and Smart phones before in this entry:

http://thagent.blogspot.com/2013/06/is-it-truly-mobile.html

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0097 The Internet of Things

Excellent read over on Marketing Daily regarding how the Internet of Things is going to transform marketing.

What is "The Internet of Things"??  Here is WikiPedia:

The Internet of Things (IoT) refers to uniquely identifiable objects and their virtual representations in an Internet-like structure. ... Radio-frequency identification (RFID) was seen as a prerequisite for the Internet of Things in the early days. If all objects and people in daily life were equipped with identifiers, they could be managed and inventoried by computers. ...

Equipping all objects in the world with minuscule identifying devices or machine-readable identifiers could transform daily life. ...

Here is the article:

http://www.mediapost.com/publications/article/222030/the-internet-of-things-will-reshape-advertising.html

Here is a snippet from that piece:

There are two important drivers of the next evolution of the Internet, known as the Internet of Things. First, changes in consumer behavior and the broad adoption of mobile devices are dramatically changing how (and how much) people consume and create Internet content. Second is a massive proliferation of devices connected to the Internet. These include everything from smartphones, fitness wearables, and thermostats to cars. Where consumer behavior and connected devices intersect is the crux of the opportunity that exists for advertisers. To make sense of this intersection we must consider two key areas: the data created by connected devices and the design of services that use that data to create utility for consumers.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0096 Personalization

Excellent read over on the Progressive Grocer.

What is personalization?  It is the art of interacting with consumers in ways that are meaningful to the individual.  It might be as simple as a coupon offer for a discount on a favorite item of theirs, but it can be much more.

This article explores the concept as it is being used by non-food retailers, then challenges the food industry to find ways to do the same.

http://www.progressivegrocer.com/top-stories/headlines/online-mobile/id41265/expert-column-making-personalization-more-personal/

Here is a snippet from the piece:

Some leading food retailers have made a lot of progress in personalizing offers; e.g. circulars. This is key to making it easier for customers to find the items they want from among the 30,000 to 40,000 SKU available in a typical grocery store.

But does personalizing the offer go far enough to win the “hearts and minds” of shoppers? A recent study on omnichannel personalization by The CMO Club indicates that the answer may be no. Building on 12 in-depth interviews with CMOs from a cross-section of non-food retailers lead author Nadine Dietz, SVP of global consultancy 5one, to find that these retail marketers are moving beyond just personalization of offers to personalizing the shopping experience and building the bases for future purchases.

Happy Reading,

J.W. Gant

Three Points of News - iOS 7, Wendy's and Walmart

First up is news on iOS 7 that has gone under the radar so far.

http://www.cultofmac.com/271225/appreciated-ios-7-feature-will-change-world/

Here is a snippet from that piece:

A curious download hit Apple’s app store this week: a messaging app called FireChat.

It’s a new kind of app because it uses an iOS feature unavailable until version 7: the Multipeer Connectivity Framework. The app was developed by the crowdsourced connectivity provider Open Garden and this is their first iOS app.

The Multipeer Connectivity Framework enables users to flexibly use WiFi and Bluetooth peer-to-peer connections to chat and share photos even without an Internet connection. Big deal, right?

But here’s the really big deal — it can enable two users to chat not only without an Internet connection, but also when they are far beyond WiFi and Bluetooth range from each other — connected with a chain of peer-to-peer users between one user and a far-away Internet connection.

It’s called wireless mesh networking. And Apple has mainstreamed it in iOS 7. It’s going to change everything.

Next is news on mobile payments in the new Wendy's app:

http://www.mobilecommercedaily.com/wendy%E2%80%99s-eyes-personalized-mobile-commerce-with-nationwide-payment-launch

Here is a snippet from that piece:

Wendy’s has rolled out mobile payments to all of its United States locations, giving the brand a first-mover advantage in the quick-service restaurant space as well as early insight into how Bluetooth, Wi-Fi and other types of technology can improve the in-restaurant experience.

Eighty-five percent of Wendy’s locations in the United States began accepting mobile payments one week ago through the company’s branded iPhone and Android app, with the remaining percent joining soon. The payments currently rely on a six-digit, one-time code, but the quick-service restaurant is also testing other types of technology to cut down on the number of steps involved in paying for a meal.

“Right now you’re using a six-digit code to connect to the POS — we may use Bluetooth, for example, instead of a six-digit code,” said Brandon Rhoten, vice president of digital at Wendy’s, Dublin, OH.

You may recall Wendy's just announced as an owner of MCX preparing for a future mobile payments offering.

Finally is news on Walmart offering price comparison functionality within their app, in a limited fashion.

http://www.morningnewsbeat.com/#A44070

Here is a snippet from that piece:

KC's View: I think that any tool that creates price transparency is potentially powerful, but I have to admit that I am less than overwhelmed by the description … because the comparison is taking place after the Walmart purchase, not before. Plus, not comparing prices to online retailers seems a little disingenuous, since that's where some significant price competition comes from.

Happy Reading,

J.W. Gant

NFC Takes Another Blow

That is the exact headline of one story today that is worth taking a look at.

"NFC Takes Another Blow"

Here is the story:

http://www.mobilecommercedaily.com/nfc-takes-another-blow-as-7-eleven-best-buy-shut-it-down

Here is a snippet from that piece:

Best Buy and 7-Eleven have announced that they will be shutting down their near-field communications capabilities in their retail locations, pointing to further struggles for NFC-based mobile payments.

Here is another story that shows ISIS apparently imploding as the CTO goes public with a lot of static on the question of adoption:

http://www.computerworld.com/s/article/9247016/Isis_CTO_accuses_retailers_of_turning_off_NFC_and_smartcard_payment_tech

Here is a snippet from that piece:

Efforts to push mobile payments using NFC-ready smartphones have gone through a series of fits and starts in the past three years in the U.S., but have had little effect on how Americans make purchases.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0095 Flat Design A History

Design is the art of ... well, art, at least in mobile apps.  Flat design vs. a more textured "real world" or skeuomorphic design style has taken hold very strongly since the release of Apple's iOS 7.  How about a history lesson on all of this?

The folks over on "The Next Web" have done so and it makes for excellent reading.

http://thenextweb.com/dd/2014/03/19/history-flat-design-efficiency-minimalism-made-digital-world-flat/?fromcat=all#!AzMHH

Here is a snippet from the piece:

It seems as though any time you hear about Web design these days, you can’t help but come across the term “flat design.” While the flat Web design trend has been emerging in recent years, it seemed to have exploded in popularity thanks to large companies and organizations changing their design aesthetic to that of flat design.

But where did flat design come from? And why are we seeing it on the Web? As with anything in design, knowing where a style or technique came from and the history behind it can help you make more educated decisions when it comes to the use of the design aesthetic.

Don't forget to read my white paper on the end of Skeuomorphism:

http://thagent.blogspot.com/2013/06/user-interface-design.html

Happy Reading,

J.W. Gant

Mobile Apps Drive Shopping in Store

Apigee has released the results from a survey conducted late November of last year.

According to the survey results 2 of every 3 smart phone users are more likely to shop at a store if the store has a "useful mobile app".

These are hugely important results.  A quality mobile app is now table stakes for brick & mortar stores.

Here is a short write-up of the study:

http://www.mobiletechnews.com/info/2014/03/12/160206.html

Here is a snippet from that piece:

Apigee today announced that two-thirds of the 140 million U.S. adults with smartphones are more likely to shop at a store that provides a useful mobile app, according to a new report issued by the Apigee Institute. The report, titled, "The Mobile Mandate for Retail - Three criteria for making the most of mobile apps in retail," focuses on retail data garnered from a survey of 1,000 U.S. smartphone owners. The Apigee Institute is a research and strategy organization dedicated to helping Global 2000 companies extend their leadership in today's app economy. It developed the survey and report to shed light on how mobile apps are changing consumer shopping behavior and what these changes mean for retailers.

The entire press release by Apigee can be found here:

http://apigee.com/about/pressrelease/apigee-finds-two-out-three-us-adults-smartphones-are-more-likely-shop-store-provides

To download the entire report navigate here:

http://pages.apigee.com/ebook-the-mobile-mandate-for-retail-reg.html?utm_medium=pr&utm_campaign=eBook

Happy Reading,

J.W. Gant

Android Wear Announced

Google is following the same pattern they set with the announcement and release of Android.  They're announcing the platform, the software, and the hardware partnerships now but the products will follow later.

Android Wear is a software extension of Android, the smart phone operating system, that will allow hardware companies to begin making Android Watches and/or other wearable gear.

Here is one write-up of this news:

http://thenextweb.com/google/2014/03/18/google-gets-wearable-tech-android-wear-launches-developer-preview-watches/?fromcat=all#!AyoQn

Here is a snippet from that piece:

Google today announced Android Wear, a project that extends the company’s mobile operating system to wearables. The company is startingwith watches, and has released a Developer Preview so app creators can tailor their existing notifications for watches powered by Android Wear.

Google has partnered with several consumer electronics manufacturers (including Asus, HTC, LG, Motorola, and Samsung), chip makers (Broadcom, Imagination, Intel, Mediatek, and Qualcomm), as well as fashion brands (only the Fossil Group was named). The company says it will use these partners to launch watches powered by Android Wear later this year.

Happy Reading,

J.W. Gant

**UPDATE**

ArsTechnica has easily the best write-up on this story.  Quite in-depth relative to any other I've seen.

http://arstechnica.com/gadgets/2014/03/in-depth-with-android-wear-googles-quantum-leap-of-a-smartwatch-os/

Best Reading of the Day - Entry 0094 mPOS Overview

The folks over on PYMTS.com have a very good read on the current state of Point of Sale (POS) systems using mobile devices.  This is an in depth report that shouldn't be missed if you are interested in mobile, retail, and technology.

http://www.pymnts.com/briefing-room/mobile/MPOS-Tracker/mpos-tracker-march-14-2014/

Here is a snippet from that piece:

This monthly report is designed to organize the mobile point-of-sale ecosystem, one that has emerged over the past several years as smartphones and tablets delivered new payment-acceptance capabilities for all merchant categories. This report provides an initial overview of those players that have entered this space, including a description of their capabilities, solution features and functions, and customer and go-to-market priorities. This report organizes the ecosystem into two broad categories: those merchant-facing organizations that supply devices to merchants directly, and those that “power” those players and supply them with the mPOS hardware, software, tools and services that help merchant-facing organizations meet their customer needs.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0093 Misc Articles

I have a bit of catching up to do as I've been ill and found it difficult to either research or write. Several stories have caught my eye and are worth reading.

First is a research bit on Mobile Payments by MasterCard that I missed the announcement for.  Analyses of this are coming out now.

http://online.wsj.com/article/PR-CO-20140224-900037.html

Basically the analysis characterizes an improving landscape for payments using mobile devices.

Next is the possible use of ACH, sometimes in the form of what is called "decoupled debit" and the opportunities by retail to accelerate that use to gain loyalty and profit from the savings generated by the transaction.

http://www.digitaltransactions.net/news/story/4560

Beacon technology is up for the next two links.  The release of iOS 7.1 has enacted some changes.  Beacon searching remains on so long as location services is turned on.  This has generated a mixed response.  Privacy concerns question the inability to turn this off easily while retailers likely will see this as a step in the right direction.

Read one viewpoint on this here:

http://pocketnow.com/2014/03/12/ios-7-1-ibeacon-improvement

Then be sure to view this slideshow of 11 Beacon Projects:

http://www.paymentssource.com/gallery/11-beacon-projects-changing-mobile-payments-3017204-1.html

Finally, is a little story about Galveston Texas' move in to mobile payments for parking meters.  Great little read.

http://www.mobilepaymentstoday.com/article/229167/Galveston-sees-payback-from-mobile-parking-payments-app

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0092 Disney Personalization

BusinessWeek.com has a great read about Disney's effort to personalize the experience in their theme parks.

Their "opt-in" approach still results in some effects that some find creepy.

"How did they know I was here?"

That certainly indicates two ongoing needs: (1) raising consumer awareness of the benefits, and (2) striking the right balance in personalization.

Here is the article:

http://www.businessweek.com/articles/2014-03-07/disney-bets-1-billion-on-technology-to-track-theme-park-visitors#r=read

Here is a snippet from that piece:

Jason McInerney and his wife, Melissa, recently tapped their lunch orders onto a touchscreen at the entrance to the Be Our Guest restaurant at Florida’s Walt Disney World Resort and were told to take any open seat. Moments later a food server appeared at their table with their croque-monsieur and carved turkey sandwiches. Asks McInerney, a once-a-year visitor to Disney theme parks: “How did they know where we were sitting?”

Happy Reading,

J.W. Gant

Android Tablets Sold More Than iPads

Let's go back in time briefly.

The year is 2007.  Google is working on a phone idea that will put the internet in your pocket.  Apple is working on the same thing.  The keynote announcing the iPhone hits like a bombshell and the world is changed.  Google re-gears the entire Android concept and is playing catchup.

Just a few years later Android smart phones are outselling iPhones.  Yet the usage data shows Apple customers are typically more affluent, browse more on their iPhones, and spend more than their Android using counterparts.

The year is 2010 and the iPad is announced.  Google soon follows with Android tablets and the battle is on yet again.

Today we learned that Android tablets have surpassed sales of iPads for the first time.

http://www.internetretailer.com/2014/03/05/android-tablets-outsell-ipads-so-what

What should we take from this news?  The analysis above states it is more of the same.  More Androids, but much more usage (and sales) through Apple devices.  Here is a snippet from that piece:

So what does this shift in tablet market share mean for retailers and mobile commerce? Not much, retailers and mobile experts say, because consumers who use iPads browse and buy far more than those using other tablets. This follows the exact same pattern that’s developed with smartphones: Android phones have a significant lead in market share, yet Apple iPhone users account for a gigantic majority of browsing and buying.

In my personal repertoire of devices I have a few to choose from at any given moment of any day:

• Windows 7 Tablet
• 2 HP TouchPads
• Google Nexus 7
• iPad Air
• Lenovo ThinkPad Tablet 2

My go to device is the Windows 8 platform.  Love it.

Happy Reading,

J.W. Gant

Apple May Introduce a Closed Loop Payments System

Payments Source has an analysis stating Apple is likely to introduce a closed loop payments system.

http://www.paymentssource.com/news/apple-mobile-wallet-likely-to-be-a-closed-system-report-3017158-1.html

Here is a snippet from that piece:

When Apple makes its long-awaited plunge into mobile payments, it is more likely to create a closed system for Apple customers than a truly open mobile wallet for all consumers, a new study from Celent says.

Admitting it does not possess any inside information from highly secretive Apple, research firm Celent's new report offers its "educated guess" as to how Apple is positioning itself for a future in payments.

A closed loop payments system is something very close to what gift cards currently deliver for merchants.  Here is a WikiPedia entry that provides some useful information:

http://en.wikipedia.org/wiki/Stored-value_card

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0091 Walmart Mobile

The Atlantic has an interview with Gibu Thomas, SVP of Mobile and Digital for Walmart.

http://www.theatlantic.com/magazine/archive/2014/03/get-ready-to-roboshop/357569/

Here is a snippet from the article:

Shopping at Walmart is one of the world’s most common activities. Each week, more than 245 million people visit a Walmart store. By comparison, Apple stores receive fewer than 400 million visits a year. More and more, Walmart has found, the hands attached to that foot traffic are thumbing smartphones as they pass through the door. Gibu Thomas, Walmart’s senior vice president of mobile and digital, is in charge of harmonizing the in-store and digital experiences. He leads a team of 1,500 people in Silicon Valley working to define the online future of in-store retail.

There is one very questionable statement in the piece around the definition of "mobile".  As I have written about in these pages previously a mobile device may be a smart phone or a tablet or something in between such as a "phablet" but is it truly mobile?  The interviewer jumps to the conclusion that all "mobile" devices are phones.  That is likely not the case.  See if you can spot the error.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0090 The Participation Age

Google is out with another excellent read, though this one is a sponsored white paper.

http://www.thinkwithgoogle.com/research-studies/brand-engagement-in-participation-age.html

Here is a snippet from that piece:

Gone are the days when consumers sat back and received brand messages; now they lean forward and actively engage, deciding if, when, where and how they interact with brands. In this “Participation Age,” it’s important that marketers understand that in order to stay competitive they need to have a sound online engagement strategy. To help inform marketers’ planning, Google and Advertising Age conducted two surveys: one examined how consumers engage with brands and the other detailed the way marketers, agencies and media companies engage with consumers. Read on to learn about the six core insights the surveys uncovered.

Happy Reading,

J.W. Gant

Best Reading of the Day - Entry 0089 Mobile Wallets

Mobile Commerce Daily has written up a report made available by Yankee Group.

http://www.mobilecommercedaily.com/paypal-leads-the-way-for-mobile-wallets-but-adoption-flounders-yankee-group

I've not been able to get my hands on a copy of the full report.  Here is a snippet from that piece on MCD:

According to the “U.S. Mobile Wallet Roundup: Gauging the Future Potential of Today’s Solutions” report, two-thirds of consumers are interested in mobile wallets, but this has yet to translate to mass adoption. The report also points to PayPal as the leader in the space, with 15 percent of consumers having used its application in the past month to make an in-store purchase.

...

Yankee Group tracked seven current-generation third-party wallet initiatives with physical-world payment capabilities by conducting consumer surveys and speaking with wallet providers, retailers, card networks, payment processors, issuers, mobile network operators and point-of-sale vendors. The report assigns each mobile wallet solution with a high, medium or low potential.

The mobile wallets with high potential are PayPal and MCX. The ones with medium potential are LevelUp and Google Wallet, and the ones with low potential are Square, Isis and Loop.

Here is a snapshot of the first exhibit in the Yankee Group report:



Happy Reading,

J.W. Gant

**UPDATE**
Good article on Yahoo News.  Much better than the one listed above.
http://news.yahoo.com/mobile-payments-once-again-on-the-cusp-of-taking-off-154820454.html

This quote stands out to me:
MCX’s key advantage is the fact that it signed on with grocery chains and gas stations – two high-use areas. “That’s a great way to encourage use and change an entrenched behavior,” says McKee. “It’s going to be very disruptive.”